Agenda packet — Shafter City Council, August 4, 2026 (part 2 of 2)

The City of Shafter has developed an advanced fiber network to provide high-speed internet access to the community. This network is funded through the Telecommunications Fund, which has been operating at a loss. To improve financial sustainability, the City is planning to partner with a service provider to expand services and attract more customers. With the help of grant funding, this partnership is expected to increase customer adoption and eventually generate positive operating income, ensuring the long-term success of the network.

Telecommunications Fund Operating Revenues/Expenses
Account Category
25-26
Budget
25-26 YTD
Actual
25-26 %
of Budget
24-25 YTD
Actual YoY Change
YTD %
Change
Eight Yr
CAGR (19 to
26)
71-Fees for Service 156,651 270,701 172.8% 227,492 19.0% 43,209 7.8% 75-Rents & Concessions - - 0.0% 2,196 -100.0% (2,196) 0.0% 76-Investment Earnings - - 0.0% 14,732 -100.0% (14,732) 0.0% 77-Grants & Donations - - 0.0% 487,010 -100.0% (487,010) 0.0% 79-Transfers-In
Total Revenues 270,701 156,651 172.8% 731,430 -63.0% (460,729) 0.0% Labor Costs - - 0.0% - 0.0% - 0.0%
Planned Operations 398,000 801,668 201.4% 45,742 1652.6% 755,926 28.9% Utilities 17,500 13,005 74.3% 15,613 -16.7% (2,608) -4.9% Internal Charges 172,286 172,284 100.0% 138,809 24.1% 33,475 13.1% Debt - - 0.0% - 0.0% - -100.0%
Operating Expenses 587,786 986,957 167.9% 200,164 $786,793 393.1% 21.0% Operating Income (Loss) (431,135) (716,256) 166.1% 27,328 (743,584) -2721.0% 34.6%

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The Rail Operations Fund has experienced year-over-year operating losses, but the City of Shafter is taking steps to improve its financial outlook. The City is in the process of finalizing a long-term lease agreement with The Wonderful Company, which is expected to generate steady revenue. Over time, this agreement should help reduce the fund’s accumulated deficit and put rail operations on a more sustainable financial path.

Rail Operating Revenues/Expenses
Account Category
25-26
Budget
25-26 YTD
Actual
25-26 %
of Budget
24-25 YTD
Actual YoY Change
YTD %
Change
Eight Yr
CAGR (19 to
26)
71-Fees for Service 15,150 - 0.0% - 0.0% - 0.0%
75-Rents & Concessions 60,600 - 0.0% - 0.0% - -100.0%
76-Investment Earnings - - 0.0% - 0.0% - 0.0%
77-Grants & Donations - - 0.0% - 0.0% - 0.0%
79-Transfers-In
Total Revenues - 75,750 0.0% - 0.0% - 4.4%
Labor Costs 16,541 27,892 168.6% 31,157 -10.5% (3,265) -12.3% Planned Operations 30,906 429 1.4% 1,059 -59.5% (630) -43.0% Utilities 3,520 6,320 179.5% 2,899 118.0% 3,421 9.9%
Internal Charges - - 0.0% 86,979 -100.0% (86,979) -100.0% Debt - - 0.0% - 0.0% - -100.0%
Operating Expenses 50,967 34,641 68.0% 122,094 ($87,453) -71.6% -20.8% Operating Income (Loss) 24,783 (34,641) -139.8% (122,094) 87,453 -71.6% 0.0%

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Special districts are areas within the City of Shafter where property owners pay dedicated fees to help maintain specific services and improvements in their neighborhoods. These districts include:

LLMD (Lighting, Landscaping, and Maintenance Districts) – These districts fund the upkeep of streetlights, landscaping, parks, and public spaces to ensure they remain clean, safe, and visually appealing. Property owners within these districts contribute through annual assessments.

CFD (Community Facilities Districts) – Also known as Mello-Roos districts, these fund a wider range of public infrastructure and services, such as roads, schools, emergency services, and parks. They are typically created for new developments, with property owners paying a special tax to support the improvements.

These districts ensure that specific areas receive the necessary maintenance and improvements without impacting the city’s general budget.

Special Districts Operating Revenues/Expenses
Account Category
25-26
Budget
25-26 YTD
Actual
25-26 %
of Budget
24-25 YTD
Actual YoY Change
YTD %
Change
Eight Yr
CAGR (19 to
26)
70-Taxes 990,917 993,114 100.2% 1,140,985 -13.0% (147,871) 9.6% 76-Investment Earnings - 109,547 0.0% 83,617 31.0% 25,930 16.1% 79-Transfers-In - - 0.0% - 0.0% - 0.0%
Total Revenues 1,102,661 990,917 111.3% 1,224,602 -10.0% (121,941) 1.2% Labor Costs - - 0.0% - 0.0% - 0.0%
Planned Operations 544,277 363,906 66.9% 432,830 -15.9% (68,924) 1.2% Utilities 155,450 162,888 104.8% 132,425 23.0% 30,463 18.9% Internal Charges - - 0.0% - 0.0% - 0.0%
Transfers-Out - - 0.0% - 0.0% - 0.0%
Operating Expenses 699,727 526,794 75.3% 565,255 ($38,461) -6.8% 4.2% Operating Income (Loss) 291,190 575,867 197.8% 575,730 137 0.0% 20.3%

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The City of Shafter manages special revenue funds, which are made up of grants, state and federal funding sources like TDA (Transportation Development Act), gas tax, and SB1, as well as local funding such as impact fees. These funds are specifically designated for certain uses and cannot be spent on general city operations. The City combines these funds with local matching dollars to invest in capital projects, such as infrastructure improvements, road maintenance, and other community enhancements. This report provides a budget-to-actual summary, showing how much funding was allocated and how much has been spent on these projects.

Special Revenues & Capital Projects
Account Category
25-26
Budget
25-26 YTD
Actual
25-26 %
of Budget
24-25 YTD
Actual YoY Change
YTD %
Change
Eight Yr
CAGR (19 to
26)
70-Taxes 985,860 1,219,186 123.7% 1,208,389 0.9% 10,797 5.9% 71-Fees for Service - 129,698 0.0% 47,059 175.6% 82,639 83.7% 72-Connection/Impact Fe 7,041,300 6,153,690 87.4% 9,550,279 -35.6% (3,396,589) 7.0% 73-License & Permits - - 0.0% - 0.0% - 0.0%
74-Fines, Forfeitures, 26,785 - 0.0% 27,661 -100.0% (27,661) -100.0% 76-Investment Earnings 775,653 1,774,657 228.8% 1,755,395 1.1% 19,262 9.4% 77-Grants & Donations 11,918,500 5,499,630 46.1% 3,482,385 57.9% 2,017,245 20.2% 78-Other Revenue - - 0.0% - 0.0% - 0.0%
79-Transfers-In - - 0.0% 88,237 -100.0% (88,237) -100.0% 80-Operations -Internal 338,936 - 0.0% - 0.0% - -100.0% Revenues 14,776,861 21,087,034 70.1% 16,159,405 -8.6% (1,382,544) 9.2% Labor Costs - - 0.0% - 0.0% - 0.0%
Planned Operations 370,000 362,519 98.0% 363,435 -0.3% (916) 0.0% Utilities - - 0.0% - 0.0% - 0.0%
Internal Charges - - 0.0% - 0.0% - 0.0%
Debt - - 0.0% - 0.0% - 0.0%
Capital Outlay 58,902 357,530 607.0% 847,341 -57.8% (489,811) 25.6% CIP 24,455,474 23,139,144 94.6% 5,881,049 293.5% 17,258,095 33.2% Transfers 3,200,000 - 0.0% 2,848,840 -100.0% (2,848,840) -100.0% Expenses 28,084,376 23,859,193 85.0% 9,940,665 $13,918,528 140.0% 30.0% Operating Income (Loss) (6,997,342) (9,082,332) 129.8% (8,732,276) (350,056) 4.0% 0.0%

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The City of Shafter has four Internal Service Funds, which are used to support city operations by providing essential services to diƯerent departments.

These funds are not directly funded by residents but instead charge city departments for the services they provide. The four Internal Service Funds include:
 Facility Maintenance – Ensures city buildings and facilities are properly maintained and in good condition.  Vehicle Maintenance – Manages and repairs city-owned vehicles to keep them running eƯiciently.  Risk Management – Handles insurance, workplace safety, and liability issues to protect the city from financial risks.  Information Technology (IT) – Supports and maintains the city's technology infrastructure, including computers, software, and network systems.

These funds help the city operate smoothly by ensuring departments have the resources they need to serve the community eƯectively.

Internal Service Funds Operating Expenses
Department
25-26
Budget
25-26 YTD
Actual
25-26 %
of Budget
24-25 YTD
Actual YoY Change
YTD %
Change
Eight Yr
CAGR (19 to
26)
5100-Facility Maintenance 1,018,344 1,039,367 102.1% 905,583 14.8% 133,784 26.4% 5101-Vehicle Maintenance 239,292 222,051 92.8% 273,059 -18.7% (51,008) -1.8% 5102-Risk Management 1,456,049 1,365,242 93.8% 1,480,167 -7.8% (114,925) -1.2% 5103-Information Technology 1,477,301 1,486,560 99.4% 1,331,553 10.9% 145,748 9.2% Grand Total 4,200,245 4,103,961 97.7% 3,990,362 $113,599 2.8% 5.6%

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As Shafter continues to grow, the city's fleet and equipment play a crucial role in maintaining essential public services. These assets—ranging from police vehicles and fire trucks to street sweepers, and construction equipment—help ensure the city operates eƯiciently and safely for residents and businesses.

What is a Fleet? A fleet refers to the collection of vehicles owned and operated by the city to support public services. This includes:
 Emergency Response Vehicles – Police cars and fire trucks that provide public safety and emergency assistance.  Public Works Vehicles – Street sweepers, dump trucks, and utility vehicles that maintain roads, sidewalks, and city infrastructure.  Parks and Recreation Vehicles – Mowers, utility carts, and trucks used for maintaining parks, sports fields, and community spaces.

The following table provides citywide capital expenses by department.

Citywide Fleet & Equipment
Account Category 25-26 Budget
25-26 YTD
Actual
25-26 %
of Budget
24-25 YTD
Actual YoY Change
YTD %
Change
Eight Yr
CAGR (19
to 26)
200-Police 921,483 1,373,199 149.0% 1,661,690 -17.4% (288,491) 27.4% 400-Public Works 517,680 508,713 98.3% 853,331 -40.4% (344,618) 25.2% 140-Administrative Services - 14,593 0.0% 5,983 143.9% 8,610 0.0% 500-Information Technology 60,439 59,480 98.4% 415,798 -85.7% (356,318) 8.3% 300-Community Services - - 0.0% - 0.0% - -100.0%
405-Building 100,000 182,634 182.6% - 0.0% 182,634 14.8% 210-Corrections - - 0.0% - 0.0% - -100.0%
100-City Council - - 0.0% - 0.0% - 0.0%
145-Planning - - 0.0% - 0.0% - -100.0%
110-City Manager - - 0.0% - 0.0% - -100.0%
000-Non-Departmental - - 0.0% - 0.0% - 0.0%
135-Human Resources - - 0.0% - 0.0% - 0.0%
120-City Clerk - - 0.0% - 0.0% - 0.0%
Total Citywide Fleet & Equipment 2,138,619 1,599,602 133.7% 2,936,802 ($798,183) -27.2% 21.8%

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The Capital Improvement Program (CIP) is a long-term plan that outlines major infrastructure projects a city or government plans to complete over several years. These projects include things like road repairs, new parks, public buildings, and water system upgrades. The CIP helps prioritize and budget for these big projects, ensuring the community's needs are met while managing financial resources wisely. It typically spans multiple years and is updated regularly to reflect changing priorities and funding availability.

CIP Category
FY Actual
20/21
FY Actual
21/22
FY Actual
22/23
FY Actual
23/24
FY Actual
24/25
FY YTD
Actual 25/26 Total
Streets 2,302,147 2,736,036 1,633,263 4,798,297 3,125,798 5,479,730 20,075,271 Water 1,534,492 1,278,889 1,211,899 1,608,122 2,412,627 1,483,492 9,529,520 Parks 0 53,998 842,398 2,608,359 1,010,720 4,637,623 9,153,098 Public Facilities 15,867 9,500 960 1,880,380 2,267,940 3,941,873 8,116,519 Police 10,420 0 16,102 193,396 396,757 5,790,229 6,406,904 Sewer 517,426 919,098 459,940 687,444 1,580,196 1,411,842 5,575,945 IT 0 0 0 149,840 337,170 1,009,847 1,496,857
Other 934,134 70,253 2,000 157,782 2,971 83,460 1,250,602 General Gov 284,206 74,952 16,184 638,155 63,930 91,481 1,168,908 Learning Center 0 0 0 8,711 142,726 13,363 164,800
Economic Dev 28,280 21,867 31,155 34,163 6,209 0 121,673 Grand Total $5,626,972 $5,164,592 $4,213,900 $12,764,649 $11,347,045 $23,942,939 $63,060,097

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91,481
1,992,484
798,726
5,835,857
552,127
8,824,673
1,034,845
1,044,586
870,391
2,435
1,265
0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000 9,000,000 10,000,000 Facility Maintenanc
Federal Grant
Gas Tax
General Fund
Road Maint & Rehab.

State Grants Projec
Telecommunications
Traffic Mitigation
Tran. Dev. Act - St
Transit Operations
Wastewater Connecti
YTD By Fund
The City of Shafter has maintained a general fund surplus in recent years, contributing to one of the healthiest reserve levels in the region. The City Council adopted the current budget as a balanced budget, ensuring fiscal responsibility. While we are now experiencing a sharp decline in sales tax revenue, projections indicate that we will still conclude the fiscal year with a surplus. This year-to-date budget update provides valuable insight into the City's financial status. For any questions or further clarification, the Finance Director is available for discussion.

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CONSENT CALENDAR

CITY OF SHAFTER

CITY COUNCIL REPORT
MEETING DATE: August 4, 2026
DEPARTMENT: Kyle Ditty, Finance Analyst II
SUBJECT: Accept Treasurer's Report: June 2026

RECOMMENDATION
Council find the action is not defined as a “project” per Section 15378(b)(4) of the CEQA Guidelines; and accept the Treasurer’s Report for June 2026.

BACKGROUND
California government code section 41004 requires that the City Treasurer submit to the City Clerk and the legislative body a written report and accounting of all receipts, disbursements, and fund balances. The accompanying report for June meets this Government Code requirement, as well as the requirements of other sections of the Government Code and the City’s Investment Policy.

FISCAL IMPACT
There is no fiscal impact resulting from the acceptance of the monthly Treasurer’s Report.

CEQA ANALYSIS
The action is not defined as a “project” per Section 15378(b)(4) of the CEQA Guidelines because the action is the acceptance of a treasurer's report and therefore, it is governmental fiscal activity that does not involve any commitment to a specific project that can result in a potentially significant impact and not subject to CEQA.

APPROVED BY THE CITY ATTORNEY
No

ATTACHMENTS

1. Treasurer's Report - City Council June

2. 260720 Q Budget Updates

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City of Shafter
Fiscal Year 25/26 (Unaudited)
Monthly Cash Balances
Excludes Unrealized Gain/Losses
Fund Fund Description Apr-26 May-26 Jun-26
0100 General Fund 98,113,379 101,744,615 99,988,257
0200 Federal Grant (251,227) (269,635) (278,893)
0201 Traffic Safety 299,396 300,178 300,178
0202 Supp. Law Enforcement Fund 465,610 466,826 466,826 0203 Gas Tax 3,504,544 3,561,468 3,321,452
0204 Tran. Dev. Act - Streets 883,726 886,043 885,042
0205 Special Police Services 3,860 3,860 3,860
0206 Asset Forfeitures 229,682 230,283 230,283
0207 Road Maint & Rehab. Acct 1,038,229 1,100,563 1,154,784 0209 Community Develop. Block Grant (1,870) (1,870) (1,870) 0211 Low Moderate Income Housing 1,963,957 1,969,088 1,969,088 0300 Asset Replacement 4,952,963 4,952,963 4,952,963
0301 Wastewater Connection 16,421,904 16,591,024 16,776,814 0302 Refuse Connection 343,444 344,342 351,267
0303 Water Connection 2,944,502 3,007,106 3,099,746
0304 Park Mitigation 627,045 630,970 637,814
0305 Traffic Mitigation 18,037,174 18,368,416 18,529,204 0306 Median Mitigation 118,861 119,172 119,172
0307 MCCF Asset Replacement 3,035 3,035 3,035
0308 State Grants (179,438) (824,790) 461,176
0310 Public Safety Impact Fees 2,421,481 2,545,909 2,630,299 0600 General Long Term Debt 214,324 214,324 214,324
0800 LLMD - 001-2002 63,954 70,855 67,451
0801 LLMD - 001-2005 (81,729) (75,734) (77,060)
0802 LLMD - 002-2005 80,912 91,210 90,401
0803 LLMD - 003-2005 98,276 110,127 104,809
0804 LLMD - 004-2005 (11,206) (4,309) (5,726)
0805 LLMD - 001-2006 60,008 64,309 63,184
0806 LLMD - 001-2007 (82,397) (76,861) (78,625)
0807 LLMD - 002-2007 (113,784) (106,652) (109,510)
0808 LLMD - 001-2015 2,467,937 2,841,160 2,787,676
0809 LLMD - 001-1995 1,052 1,052 1,052
0810 LLMD - 001-1998 126,527 133,933 133,219
0811 LLMD - 001-2009 248,833 248,652 247,741
0812 LLMD - 001-2021 (4,889) (4,939) (5,585)
0813 CFD-0813 (32,588) (32,588) (32,588)
0815 CFD-0815 (11,794) (11,794) (11,794)
0816 CFD-0816 1,879 1,532 838
5000 Wastewater Operations 2,141,354 2,223,547 2,195,461 5001 Refuse Operations 489,630 849,227 714,431
5002 Water Operations (192,202) (411,503) (727,368)
5003 Transit Operations (939,550) (2,117,666) (2,185,181) 5004 Telecommunications Operations (1,591,120) (1,693,652) (2,312,605) 5005 MCCF Operations (4) (4) 484
5006 Rail Operations (1,696,420) (1,699,698) (1,703,346) 5100 Facility Maintenance (188,936) (229,842) (350,358) 5101 Vehicle Maintenance 57,460 87,203 69,326
5102 Risk Management 961,905 (23,734) (23,775)
5103 Information Technology (147,917) 33,012 (81,301)
8100 153,859,772 156,210,732 154,586,072

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Treasurer's Report
City - US Bank - Safekeeping (83145)Month End (M12 Y2026)06/01/2026 - 06/30/2026Dated: 07/13/2026Locked Down

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GAAP Financials (City - US Bank - Safekeeping (83145))
1 Risk Concentration Summary - TR (City - US Bank - Safekeeping (83145)) 2 Investment Activity - TR (City - US Bank - Safekeeping (83145)) 4 Investment Returns - TR (City - US Bank - Safekeeping (83145)) 5 Cumulative Investment Returns - TR (City - US Bank - Safekeeping (83145)) 6 Index Comparison (City - US Bank - Safekeeping (83145)) 7 Investment Portfolio Detail - TR (City - US Bank - Safekeeping (83145)) 10Investment Policy Compliance Summary - TR (City - US Bank - Safekeeping(83145)) 14 Investment Policy Voilations - TR (City - US Bank - Safekeeping (83145)) 15Credit Events - TR (City - US Bank - Safekeeping (83145)) 16 Table of Contents
Dated: 07/13/2026

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Balance Sheet City - US Bank - Safekeeping
As of: 05/31/2026 06/30/2026
Accumulated Allowance Written Off 0.00 0.00Accumulated Non-Purchased Allowance 0.00 0.00Original Cost less Due 126,613,313.67 126,970,831.39Net Accumulated Amortization/Accretion 1,043,335.15 1,086,025.21Net Accumulated OTTI 0.00 0.00 Book Value less Due 127,656,648.82 128,056,856.60
Due and Accrued 1,018,491.78 1,014,174.92
Book Value + Accrued 128,675,140.60 129,071,031.52
Net Unrealized Carrying Value Gain -835,000.42 -1,113,937.71 Carrying Value and Accrued 127,840,140.17 127,957,093.82 Income Statement City - US Bank - Safekeeping
Begin Date
End Date
06/01/202606/30/2026
Net Amortization/Accretion Income 42,690.06
Interest Income 353,617.54Dividend Income 0.00Foreign Tax Withheld Expense 0.00Misc Income 0.00Net Allowance Expense 0.00 Income Subtotal 353,617.54
Net Realized Gain/Loss 0.00Impairment Loss 0.00
Net Gain/Loss 0.00
Expense -416.67
Net Income 395,890.93Transfers In/Out 0.00Change in Unrealized Gain/Loss -278,937.29 Statement of Cash Flows City - US Bank - Safekeeping
Begin Date
End Date
06/01/202606/30/2026
Net Income 395,890.93
Amortization/Accretion on MS -42,690.06Change in Accrued on MS -36,903.54Net Gain/Loss on MS 0.00Change in Unrealized G/L on CE 0.00 Subtotal -79,593.59
Purchase of MS -2,256,852.50Purchased Accrued of MS 0.00Sales of MS 410.26Sold Accrued of MS 0.00Maturities of MS 1,987,000.00 Net Purchases/Sales -269,442.24Transfers of Cash & CE 0.00Total Change in Cash & CE 46,855.09Beginning Cash & CE 109,980.01Ending Cash & CE 156,835.10 GAAP Financials City - US Bank - Safekeeping (83145)06/01/2026 - 06/30/2026 Return to Table of Contents Dated: 07/13/2026 1

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% Concentration by Security Type % Concentration by Market Sector % Concentration by Issuer Security Type Base Market Value + Accrued % of Base Market Value + Accrued
AGCY BOND 46,860,438.92 36.622%CORP 32,359,741.69 25.290%CD 16,417,699.79 12.831%MUNI 16,136,165.50 12.611%US GOV 12,901,902.66 10.083%AGCY DISC 3,081,256.53 2.408%MMFUND 155,717.33 0.122%GNMA 43,053.62 0.034%CASH 1,117.77 0.001%Total 127,957,093.82 100.000% Footnotes: 1,2,3
Market Sector Base Market Value + Accrued % of Base Market Value + Accrued
Agency 49,941,695.45 39.030%Industrial 30,337,261.97 23.709%Financial 18,440,179.51 14.411%Municipal 16,136,165.50 12.611%Government 12,901,902.66 10.083%Cash 156,835.10 0.123%Mortgage Backed 43,053.62 0.034%Total 127,957,093.82 100.000% Footnotes: 2,3,4
Issuer Concentration Base Market Value +
Accrued
% of BaseMarket Value+ Accrued
Other 51,281,077.54 40.077%Federal Home Loan Banks 20,311,320.44 15.874%United States 18,159,311.96 14.192%Federal Agricultural Mortgage Corporation 11,138,769.09 8.705%Farm Credit System 6,666,580.13 5.210%Toyota Motor Corporation 4,365,348.07 3.412%Federal Home Loan Mortgage Corporation 3,499,688.72 2.735%State of California 3,427,978.47 2.679%Federal National Mortgage Association 3,110,981.39 2.431%The Procter & Gamble Company 3,064,355.00 2.395%Exxon Mobil Corporation 2,931,683.00 2.291%Total 127,957,093.82 100.000% Footnotes: 2,3,5
Risk Concentration Summary - TR City - US Bank - Safekeeping (83145)06/01/2026 - 06/30/2026 Return to Table of Contents Dated: 07/13/2026 2

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1: * Grouped by: Security Type. 2: * Groups Sorted by: Base Market Value + Accrued. 3: * Weighted by: Base Market Value + Accrued. 4: * Grouped by: Market Sector. 5: * Grouped by: Issuer Concentration.

Risk Concentration Summary - TR City - US Bank - Safekeeping (83145)06/01/2026 - 06/30/2026 Return to Table of Contents Dated: 07/13/2026 3

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* Does not Lock Down.
* Filtered By: Transaction Type = Buy or Transaction Type = Call Redemption or Transaction Type = Principal Paydown or Transaction Type = Maturity or Transaction Type = Principal Repayment or Transaction Type = Put Redemption or Transaction Type = Redemption orTransaction Type = Sell. * Showing transactions with Trade Date within selected date range. * Weighted by: Absolute Value of Base Principal. * MMF transactions are collapsed.* The Transaction Detail/Trading Activity reports provide our most up-to-date transactional details. As such, these reports are subject to change even after the other reports on the website have been locked down. While these reports can be useful tools in understanding recent activity,due to their dynamic nature we do not recommend using them for booking journal entries or reconciliation.

Transaction Type Description Identifier Coupon
Rate
Yield to Maturity Trade Date Final Maturity Base Original Units Price Base Principal Buy L PLUS PLATINUM CLASS Z 8AMMF0KU4 3.313 --- --- 06/30/2026 2,053,703.61 1.000 2,053,703.61Sell L PLUS PLATINUM CLASS Z 8AMMF0KU4 3.313 --- --- 06/30/2026 -1,965,628.13 1.000 -1,965,628.13Principal Paydown G2 004636 36202FEH5 4.500 4.828 06/01/2026 02/20/2040 0.00 --- -372.38Principal Paydown G2 004649 36202FEW2 4.500 --- 06/01/2026 03/20/2040 0.00 --- -37.88Maturity Signature Federal Credit Union 82671DAC1 4.800 0.000 06/08/2026 06/08/2026 -249,000.00 100.000 -249,000.00Maturity BANK OF AMERICA CORP 06048WW48 3.900 3.862 06/15/2026 06/15/2026 -1,000,000.00 100.000 -1,000,000.00Maturity Customers Bank 23204HPA0 4.700 0.000 06/15/2026 06/15/2026 -244,000.00 100.000 -244,000.00Buy FEDERAL AGRICULTURAL MORTGAGE CORP 31428JLZ8 4.200 4.100 06/18/2026 06/24/2031 1,750,000.00 100.447 1,757,822.50Buy FEDERAL HOME LOAN MORTGAGE CORP 3134HC3M9 4.300 4.358 06/18/2026 06/30/2031 500,000.00 99.806 499,030.00Call Redemption Great Midwest Bank, State Savings Bank 39083PDR0 4.500 4.500 06/28/2026 01/29/2029 -249,000.00 100.000 -249,000.00Maturity Bank of Baroda, New York Branch 06063HPM9 4.000 0.000 06/30/2026 06/30/2026 -245,000.00 100.000 -245,000.00--- --- --- 3.774 3.385 --- 12/05/2027 351,075.48 --- 357,517.72 Investment Activity - TR City - US Bank - Safekeeping (83145)Base Currency: USD 06/01/2026 - 06/30/2026 Return to Table of Contents Dated: 07/13/2026 4

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Net of Fees (includes management and trading).

Returns are actual and have not been annualized.No Tax Adjustment.Note that data will not exist prior to the performance inception date of: 03/07/2017.Reported Index Return is always Total Return.

Period Period Begin Period End Total Return, Net of Fees Price Return, Net of Fees Income Return, Net of Fees Assigned Index ReturnTrailing Month 06/01/2026 06/30/2026 0.091% -0.219% 0.310% 0.101%Quarter to Date 04/01/2026 06/30/2026 0.435% -0.497% 0.932% 0.710%Year to Date 01/01/2026 06/30/2026 0.783% -1.072% 1.854% 0.853%Since Inception 03/07/2017 06/30/2026 23.367% -1.566% 24.933% 28.984%Account Index Index Start Date Index End DateCity - US Bank - Safekeeping ICE BofA 1-5 Year AAA-A US Corporate Index 11/30/2007 --- Investment Returns - TR City - US Bank - Safekeeping (83145) Base Currency: USD As of 06/30/2026 Return to Table of Contents Dated: 07/13/2026 5

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Net of Fees (includes management and trading).

Returns are actual and have not been annualized.No Tax Adjustment.Note that data will not exist prior to the performance inception date of: 03/07/2017.

Period Begin Period End Total Return, Net of Fees Income Return, Net of Fees Price Return, Net of Fees06/01/2026 06/30/2026 0.091% 0.310% -0.219%06/01/2026 06/30/2026 --- --- ---Account Index Index Start Date Index End DateCity - US Bank - Safekeeping ICE BofA 1-5 Year AAA-A US Corporate Index 11/30/2007 --- Cumulative Investment Returns - TR City - US Bank - Safekeeping (83145) Base Currency: USD 06/01/2026 - 06/30/2026 Return to Table of Contents Dated: 07/13/2026 6

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Index Comparison Summary
Index Comparison Market Sector
Index Comparison DurationIndex Comparison Credit Rating Index Comparison City - US Bank - Safekeeping (83145)06/01/2026 - 06/30/2026 Return to Table of Contents Dated: 07/13/2026 7

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Index Comparison Summary
Risk Metric Portfolio Index DifferenceDuration 2.228 2.683 -0.455Yield 4.185 4.618 -0.433Years to Effective Maturity 2.482 2.947 -0.465Years to Final Maturity 2.514 2.947 -0.433Average Credit Rating AA- A --- Footnote: 1 Index Comparison Market Sector
Market Sector Portfolio Index DifferenceGovernment 10.083% 0.000% 10.083%Agency 39.030% 0.000% 39.030%Municipal 12.611% 0.000% 12.611%Financial 14.411% 55.257% -40.845%Industrial 23.709% 40.805% -17.096%Utility 0.000% 3.939% -3.939%Mortgage Backed 0.034% 0.000% 0.034%Cash 0.123% 0.000% 0.123% Footnote: 2
Index Comparison Duration
Duration Portfolio Index Difference< 0 0.000% --- --- 0 - 1 24.533% 1.502% 23.032%1 - 2 14.630% 30.024% -15.395%2 - 3 27.305% 27.723% -0.418%3 - 4 25.954% 27.712% -1.758%4 - 5 7.578% 13.039% -5.461%5 - 7 0.000% 0.000% 0.000%7 - 10 0.000% 0.000% 0.000%10 - 15 0.000% 0.000% 0.000%15 - 30 0.000% 0.000% 0.000%30 + 0.000% --- --- No Duration 0.000% --- --- Footnote: 3 Index Comparison Credit Rating
Credit Rating Portfolio Index DifferenceAAA 1.659% 0.520% 1.139%AA 64.173% 16.798% 47.375%A 13.665% 82.683% -69.018%BBB 2.147% 0.000% 2.147%Non-Invest 0.000% 0.000% 0.000%Not Rated 18.357% 0.000% 18.357% Footnote: 4
Index Comparison City - US Bank - Safekeeping (83145)06/01/2026 - 06/30/2026 Return to Table of Contents Dated: 07/13/2026 8

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Index: ICE BofA 1-5 Year AAA-A US Corporate Index.
1: * Grouped by: Risk Metric. 2: * Grouped by: Market Sector. 3: * Grouped by: Duration. 4: * Grouped by: Credit Rating.

Index Comparison City - US Bank - Safekeeping (83145)06/01/2026 - 06/30/2026 Return to Table of Contents Dated: 07/13/2026 9

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Security Type Description Identifier Trade Date Final Maturity Yield to Maturity Base Current Units Base Original Cost Market Price
Base Market Value Base Accrued
Balance
Base Market Value +
Accrued
CD ABNB Federal Credit Union 00092MAC4 01/27/2025 02/07/2028 4.200 249,000.00 249,000.00 100.0000 249,000.00 716.30 249,716.30CD Alabama Credit Union 01025RAN9 02/23/2024 02/28/2028 4.350 249,000.00 249,000.00 100.0000 249,000.00 89.03 249,089.03CD All In Federal Credit Union 01664MAE6 02/01/2023 02/17/2028 4.600 249,000.00 249,000.00 100.0000 249,000.00 439.33 249,439.33CD Ally Bank 02007GYC1 08/15/2022 08/18/2026 3.261 246,000.00 246,000.00 100.0000 246,000.00 2,958.07 248,958.07CORP ALPHABET INC 02079KBK2 02/23/2026 02/15/2031 4.513 2,650,000.00 2,679,282.50 98.2884 2,604,642.60 41,649.17 2,646,291.77CORP AMAZON.COM INC 023135BC9 01/27/2023 08/22/2027 4.219 1,025,000.00 984,820.00 98.8140 1,012,843.50 11,569.69 1,024,413.19CORP AMAZON.COM INC 023135BS4 12/12/2025 06/03/2030 4.455 2,000,000.00 1,808,120.00 89.4658 1,789,316.00 2,333.33 1,791,649.33CD American Express National Bank 02589AFZ0 10/28/2024 10/30/2029 3.897 245,000.00 245,000.00 100.0000 245,000.00 1,623.04 246,623.04CORP APPLE INC 037833ET3 08/07/2023 05/10/2028 4.209 2,000,000.00 1,974,348.00 99.6252 1,992,504.00 11,333.33 2,003,837.33CORP ASCENSION HEALTH ALLIANCE 04351LAD2 02/04/2026 11/15/2030 4.676 1,000,000.00 1,007,940.00 98.4992 984,992.00 5,486.78 990,478.78CD Austin Telco Federal Credit Union 052392FB8 12/12/2025 12/18/2026 3.900 249,000.00 249,000.00 100.0000 249,000.00 798.16 249,798.16CD Badlands Federal Credit Union 05659NAH5 06/27/2023 06/30/2028 5.000 249,000.00 249,000.00 100.0000 249,000.00 1,023.29 250,023.29CD Balboa Thrift and Loan Association 05765LBX4 07/11/2024 07/23/2029 4.200 244,000.00 244,000.00 100.0000 244,000.00 224.61 244,224.61CD Bank of America, National Association 06051XFP2 07/11/2024 07/17/2026 4.603 244,000.00 244,000.00 100.0000 244,000.00 5,184.16 249,184.16CD Baxter Credit Union 07181JBQ6 01/27/2025 02/22/2029 4.200 249,000.00 249,000.00 100.0000 249,000.00 257.87 249,257.87CD BMW Bank of North America 05612LHC9 10/23/2025 10/31/2029 3.648 245,000.00 245,000.00 100.0000 245,000.00 1,519.00 246,519.00CD BNY Mellon, National Association 05584CQF6 07/11/2024 07/17/2029 4.149 244,000.00 244,000.00 100.0000 244,000.00 4,577.51 248,577.51MUNI CALIFORNIA STATE 13063D3P1 03/30/2026 03/01/2029 4.274 1,300,000.00 1,345,474.00 102.0569 1,326,739.44 22,100.00 1,348,839.44MUNI CALIFORNIA STATE 13063EBP0 03/27/2025 09/01/2029 4.356 2,000,000.00 2,073,920.00 102.2486 2,044,972.37 34,166.67 2,079,139.03CD Capital One, National Association 14042RQB0 11/09/2021 11/17/2026 1.099 248,000.00 248,000.00 100.0000 248,000.00 336.33 248,336.33CD Capital One, National Association 14042TDW4 11/09/2021 11/17/2026 1.099 248,000.00 248,000.00 100.0000 248,000.00 336.33 248,336.33CD CedarStone Bank 150713BR5 06/23/2025 06/28/2027 4.000 245,000.00 245,000.00 100.0000 245,000.00 107.40 245,107.40CD Celtic Bank Corporation 15118RXY8 03/28/2022 04/08/2027 2.400 249,000.00 249,000.00 100.0000 249,000.00 376.57 249,376.57CD CFBank National Association 15721UGF0 02/23/2024 03/06/2028 4.200 249,000.00 249,000.00 100.0000 249,000.00 744.95 249,744.95CORP CISCO SYSTEMS INC 17275RBR2 02/26/2024 02/26/2029 4.443 1,000,000.00 1,008,720.00 101.0039 1,010,039.00 16,840.28 1,026,879.28CORP CITIBANK NA 17325FBP2 08/18/2025 05/29/2030 4.627 1,000,000.00 1,028,370.00 101.0137 1,010,137.00 4,368.00 1,014,505.00CORP CITIGROUP INC 17290AAR1 01/11/2022 01/20/2027 4.455 1,000,000.00 1,000,000.00 99.3440 993,440.00 14,534.72 1,007,974.72CD Citizens First Bank 17463CAM9 06/23/2025 06/28/2027 4.000 249,000.00 249,000.00 100.0000 249,000.00 109.15 249,109.15CORP COCA-COLA CO 191216CT5 03/27/2025 03/25/2030 4.323 1,000,000.00 962,170.00 97.0140 970,140.00 9,200.00 979,340.00CD Connexus Credit Union 20825WAR1 12/21/2021 12/23/2026 1.250 249,000.00 249,000.00 100.0000 249,000.00 8.53 249,008.53CD CoVantage Credit Union 22282XAM2 07/11/2025 07/17/2029 3.899 247,000.00 247,000.00 100.0000 247,000.00 1,979.38 248,979.38CD Discover Bank 254673N36 07/26/2022 07/29/2026 3.401 245,000.00 245,000.00 100.0000 245,000.00 3,543.10 248,543.10CD Dort Financial Credit Union 25844MCP1 12/12/2025 06/21/2027 3.750 247,000.00 247,000.00 100.0000 247,000.00 2,309.28 249,309.28CD Dundee Bank 26518EAT6 03/28/2022 10/08/2026 2.200 249,000.00 249,000.00 100.0000 249,000.00 345.19 249,345.19CORP ELI LILLY AND CO 532457DL9 05/19/2026 05/20/2031 4.499 1,250,000.00 1,241,962.50 99.4557 1,243,196.25 6,228.30 1,249,424.55CORP EXXON MOBIL CORP 30231GBK7 06/27/2025 03/19/2030 4.442 3,000,000.00 2,927,310.00 96.7362 2,902,086.00 29,597.00 2,931,683.00AGCY BOND FEDERAL AGRICULTURAL MORTGAGE CORP
31424WFD9 02/23/2024 01/22/2027 4.076 1,000,000.00 992,541.00 100.0248 1,000,248.00 18,218.75 1,018,466.75

AGCY BOND FEDERAL AGRICULTURAL MORTGAGE
CORP
31424WHP0 04/30/2024 04/26/2029 4.265 1,000,000.00 999,112.00 101.0092 1,010,092.00 8,395.83 1,018,487.83

AGCY BOND FEDERAL AGRICULTURAL MORTGAGE
CORP
31424WUD2 01/27/2025 01/28/2030 4.787 1,000,000.00 1,005,000.00 100.0054 1,000,054.00 20,357.50 1,020,411.50

AGCY BOND FEDERAL AGRICULTURAL MORTGAGE
CORP
31424WTB8 01/28/2025 01/07/2028 4.212 2,000,000.00 2,007,076.00 100.0986 2,001,972.00 41,373.33 2,043,345.33

AGCY BOND FEDERAL AGRICULTURAL MORTGAGE
CORP
31428JAH0 02/04/2026 01/28/2031 4.312 2,000,000.00 2,011,700.00 98.0978 1,961,956.00 32,725.00 1,994,681.00

AGCY BOND FEDERAL AGRICULTURAL MORTGAGE
CORP
31428JAB3 02/04/2026 01/26/2028 4.261 1,600,000.00 1,603,760.00 99.0410 1,584,656.00 24,972.22 1,609,628.22

AGCY BOND FEDERAL AGRICULTURAL MORTGAGE
CORP
31428JFX0 04/16/2026 04/21/2031 4.322 700,000.00 702,527.00 98.1816 687,271.20 5,308.33 692,579.53

AGCY BOND FEDERAL AGRICULTURAL MORTGAGE
CORP
31428JLZ8 06/18/2026 06/24/2031 4.332 1,750,000.00 1,757,822.50 99.4137 1,739,739.75 1,429.17 1,741,168.92

AGCY BOND FEDERAL FARM CREDIT BANKS

FUNDING CORP
3133ENL99 10/07/2022 09/15/2027 4.141 1,000,000.00 967,925.00 99.1022 991,022.00 9,937.50 1,000,959.50

AGCY BOND FEDERAL FARM CREDIT BANKS

FUNDING CORP
3133EPN50 12/28/2023 12/15/2028 4.234 2,000,000.00 2,040,316.00 100.0348 2,000,696.00 3,777.78 2,004,473.78 Investment Portfolio Detail - TR City - US Bank - Safekeeping (83145)Base Currency: USD As of 06/30/2026 Return to Table of Contents Dated: 07/13/2026 10

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Security Type Description Identifier Trade Date Final Maturity Yield to Maturity Base Current Units Base Original Cost Market Price
Base Market Value Base Accrued
Balance
Base Market Value +
Accrued

AGCY BOND FEDERAL FARM CREDIT BANKS

FUNDING CORP
3133ETMU8 06/23/2025 12/21/2026 4.055 1,700,000.00 1,701,819.00 99.9143 1,698,543.10 1,829.86 1,700,372.96

AGCY BOND FEDERAL FARM CREDIT BANKS

FUNDING CORP
3133ETH67 10/23/2025 10/17/2030 4.272 1,000,000.00 1,005,660.00 97.4814 974,814.00 7,451.39 982,265.39

AGCY BOND FEDERAL FARM CREDIT BANKS

FUNDING CORP
3133ETK89 10/23/2025 10/28/2030 4.448 1,000,000.00 1,002,870.00 97.1981 971,981.00 6,527.50 978,508.50 AGCY BOND FEDERAL HOME LOAN BANKS 3130AFFX0 08/15/2024 11/16/2028 4.233 2,000,000.00 1,965,602.00 97.7952 1,955,904.00 8,125.00 1,964,029.00AGCY BOND FEDERAL HOME LOAN BANKS 3130APCH6 09/27/2021 09/29/2026 3.959 3,000,000.00 3,000,000.00 99.3035 2,979,105.00 8,625.00 2,987,730.00AGCY BOND FEDERAL HOME LOAN BANKS 3130APD77 09/29/2021 10/06/2028 4.271 2,000,000.00 2,000,000.00 94.1581 1,883,162.00 7,272.22 1,890,434.22AGCY BOND FEDERAL HOME LOAN BANKS 3130AP4X0 09/24/2021 09/30/2026 3.985 2,000,000.00 2,000,000.00 99.2586 1,985,172.00 5,055.56 1,990,227.56AGCY BOND FEDERAL HOME LOAN BANKS 3130APGT6 10/19/2021 10/28/2026 4.011 1,000,000.00 1,000,000.00 99.0718 990,718.00 2,012.50 992,730.50AGCY BOND FEDERAL HOME LOAN BANKS 3130APVC6 12/10/2021 12/01/2026 4.093 1,000,000.00 1,000,000.00 98.8773 988,773.00 1,145.83 989,918.83AGCY BOND FEDERAL HOME LOAN BANKS 3130ARF55 03/22/2022 03/30/2027 4.159 1,000,000.00 1,000,000.00 98.8571 988,571.00 6,572.22 995,143.22AGCY BOND FEDERAL HOME LOAN BANKS 3130AUQ31 01/27/2023 10/01/2027 4.190 1,000,000.00 997,901.00 99.2218 992,218.00 8,875.00 1,001,093.00AGCY BOND FEDERAL HOME LOAN BANKS 3130AVBC5 08/04/2025 03/12/2027 4.094 1,350,000.00 1,367,658.00 100.2718 1,353,669.30 18,393.75 1,372,063.05AGCY BOND FEDERAL HOME LOAN BANKS 3130AVVX7 06/01/2023 06/09/2028 4.231 1,000,000.00 1,001,752.00 99.1102 991,102.00 2,291.67 993,393.67AGCY BOND FEDERAL HOME LOAN BANKS 3130AWGS3 06/06/2025 06/14/2030 4.262 2,000,000.00 2,011,240.00 99.5047 1,990,094.00 3,895.83 1,993,989.83AGCY BOND FEDERAL HOME LOAN BANKS 3130AWTS9 09/25/2025 09/13/2030 4.272 2,075,000.00 2,153,289.75 100.8626 2,092,898.95 28,012.50 2,120,911.45AGCY BOND FEDERAL HOME LOAN BANKS 3130B4LA7 01/27/2025 01/24/2030 4.612 1,000,000.00 1,004,000.00 99.9595 999,595.00 20,061.11 1,019,656.11AGCY BOND FEDERAL HOME LOAN MORTGAGE CORP 3134HADK6 08/15/2024 08/15/2029 4.370 2,000,000.00 1,985,692.00 98.9247 1,978,494.00 30,222.22 2,008,716.22AGCY BOND FEDERAL HOME LOAN MORTGAGE CORP 3134HBKY6 04/22/2025 04/30/2029 4.377 1,000,000.00 1,000,000.00 98.9998 989,998.00 6,777.78 996,775.78AGCY BOND FEDERAL HOME LOAN MORTGAGE CORP 3134HC3M9 06/18/2026 06/30/2031 4.565 500,000.00 499,030.00 98.8274 494,137.00 59.72 494,196.72AGCY BOND FEDERAL NATIONAL MORTGAGE

ASSOCIATION
31359MEU3 06/27/2025 05/15/2029 4.216 2,000,000.00 2,186,200.00 105.4473 2,108,946.00 15,972.22 2,124,918.22

AGCY BOND FEDERAL NATIONAL MORTGAGE

ASSOCIATION
3136GCRE7 03/30/2026 03/06/2031 4.367 1,000,000.00 993,300.00 97.4084 974,084.00 11,979.17 986,063.17 CD First Business Bank 31938Q3C6 01/27/2025 07/30/2029 4.148 244,000.00 244,000.00 100.0000 244,000.00 4,216.85 248,216.85CD First Guaranty Bancshares, Inc. 320437BJ4 12/12/2025 12/17/2027 3.748 245,000.00 245,000.00 100.0000 245,000.00 352.40 245,352.40CD First National Bank 32117BEQ7 12/21/2021 12/30/2026 1.250 249,000.00 249,000.00 100.0000 249,000.00 8.53 249,008.53CD First Technology Federal Credit Union 33715LED8 08/12/2022 08/19/2027 3.700 249,000.00 249,000.00 100.0000 249,000.00 302.89 249,302.89CD FNB Oxford Bank 30259XBZ4 07/11/2025 07/25/2030 4.300 249,000.00 249,000.00 100.0000 249,000.00 176.01 249,176.01MUNI FOOTHILL-DE ANZA CALIF CMNTY

COLLEGE DIST
345102PM3 08/04/2025 08/01/2030 4.270 1,205,000.00 1,110,166.50 91.4139 1,101,537.74 9,830.79 1,111,368.53 CD Forbright Bank 34520LBL6 01/27/2025 02/12/2029 4.200 249,000.00 249,000.00 100.0000 249,000.00 544.39 249,544.39GNMA G2 004636 36202FEH5 06/07/2012 02/20/2040 4.848 35,222.98 35,222.98 98.5952 34,728.17 132.09 34,860.25GNMA G2 004649 36202FEW2 06/07/2012 03/20/2040 --- 8,540.89 8,540.89 95.5560 8,161.33 32.03 8,193.36CD Goldman Sachs Bank USA 38150V4R7 08/12/2025 08/20/2029 3.848 245,000.00 245,000.00 100.0000 245,000.00 3,411.21 248,411.21CD GreenState Credit Union 39573LBZ0 10/01/2021 10/15/2026 1.050 249,000.00 249,000.00 100.0000 249,000.00 214.89 249,214.89CORP HOME DEPOT INC 437076DC3 09/03/2025 06/25/2029 4.422 1,500,000.00 1,546,380.00 100.9071 1,513,606.50 1,187.50 1,514,794.00MUNI HUNTINGTON BEACH CALIF UN HIGH

SCH DIST
446222US8 01/27/2023 08/01/2026 3.765 1,235,000.00 1,115,884.25 99.7789 1,232,269.04 6,216.17 1,238,485.21 CD Ideal Credit Union 45157PAZ3 12/20/2022 12/29/2027 4.500 249,000.00 249,000.00 100.0000 249,000.00 920.96 249,920.96MUNI JEFFERSON CALIF ELEM SCH DIST SAN

MATEO CNTY
472412SN6 11/12/2024 09/01/2028 4.165 1,350,000.00 1,216,134.00 94.4214 1,274,688.67 6,525.00 1,281,213.67 CD JPMorgan Chase Bank, N.A. 48128WDB8 11/09/2021 11/17/2026 0.799 248,000.00 248,000.00 100.0000 248,000.00 244.60 248,244.60CD Kemba Financial Credit Union, Inc. 48836LCX8 10/23/2025 11/05/2027 3.550 249,000.00 249,000.00 100.0000 249,000.00 605.45 249,605.45CD KS StateBank 50116CDT3 10/28/2024 11/15/2027 4.000 249,000.00 249,000.00 100.0000 249,000.00 491.18 249,491.18MMFUND L PLUS PLATINUM CLASS Z 8AMMF0KU4 --- 06/30/2026 --- 155,717.33 155,717.33 1.0000 155,717.33 0.00 155,717.33CD Liberty First Credit Union 530520AE5 01/27/2023 02/03/2028 4.350 249,000.00 249,000.00 100.0000 249,000.00 890.26 249,890.26CD Liberty Savings Bank, F.S.B. 531194AK4 02/23/2024 02/28/2028 4.150 249,000.00 249,000.00 100.0000 249,000.00 849.33 249,849.33MUNI LOS ANGELES CALIF UNI SCH DIST 544646A69 06/10/2022 05/01/2027 4.234 1,160,000.00 1,264,121.60 101.4271 1,176,554.29 34,689.80 1,211,244.09MUNI LOS ANGELES CALIF UNI SCH DIST 544647LC2 11/18/2025 10/01/2029 4.379 1,500,000.00 1,538,955.00 99.8982 1,498,472.27 16,301.25 1,514,773.52CD M1 Bank 55316CDP8 06/23/2025 06/28/2027 4.049 245,000.00 245,000.00 100.0000 245,000.00 108.74 245,108.74MUNI MARIN CALIF CMNTY COLLEGE DIST 56781RKD8 10/07/2022 08/01/2026 3.669 1,010,000.00 878,083.90 99.7425 1,007,398.76 2,857.46 1,010,256.22CD Mauch Chunk Trust Company 577234CV7 02/23/2024 03/15/2029 4.150 249,000.00 249,000.00 100.0000 249,000.00 452.98 249,452.98CD Medallion Bank 58404DZY0 04/17/2026 04/23/2029 3.950 249,000.00 249,000.00 100.0000 249,000.00 215.57 249,215.57 Investment Portfolio Detail - TR City - US Bank - Safekeeping (83145)Base Currency: USD As of 06/30/2026 Return to Table of Contents Dated: 07/13/2026 11

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COLLEGE DIST
796720NT3 03/02/2023 08/01/2027 4.238 1,125,000.00 991,462.50 97.2381 1,093,928.32 7,546.88 1,101,475.19 MUNI SANTA ANA CALIF PENSION OBLIG 801139AG1 03/30/2026 08/01/2028 4.285 1,000,000.00 951,660.00 94.8222 948,222.37 6,937.50 955,159.87CD Sound Credit Union 83616HAF1 01/27/2025 01/31/2028 4.200 249,000.00 249,000.00 100.0000 249,000.00 859.56 249,859.56CD Southwest National Bank 845182CA0 07/11/2024 07/17/2026 4.507 244,000.00 244,000.00 100.0000 244,000.00 5,073.86 249,073.86CD State Bank of India - Chicago Branch 856283U87 10/15/2021 10/19/2026 1.098 249,000.00 249,000.00 100.0000 249,000.00 547.80 249,547.80CD Synchrony Bank 87164WD47 10/01/2021 10/08/2026 0.998 249,000.00 249,000.00 100.0000 249,000.00 581.00 249,581.00CORP TARGET CORP 87612EBH8 02/13/2025 04/15/2029 4.403 1,000,000.00 954,689.00 97.3232 973,232.00 7,125.00 980,357.00CD The Bank of Greene County 06427HBC7 01/27/2025 01/31/2030 4.148 244,000.00 244,000.00 100.0000 244,000.00 4,189.11 248,189.11CD The Idabel National Bank 451088BB3 08/12/2022 08/19/2027 3.295 246,000.00 246,000.00 100.0000 246,000.00 2,935.82 248,935.82CD Third Federal Savings & Loan Association of Clevel
88413QDN5 08/12/2022 08/19/2027 3.295 248,000.00 248,000.00 100.0000 248,000.00 2,959.69 250,959.69 CD Thread Bank 88553LAS8 06/27/2023 06/30/2028 5.350 249,000.00 249,000.00 100.0000 249,000.00 36.50 249,036.50CD Toyota Financial Savings Bank 89235MLU3 10/12/2021 10/14/2026 1.048 249,000.00 249,000.00 100.0000 249,000.00 558.72 249,558.72CORP TOYOTA MOTOR CREDIT CORP 89236TLB9 06/05/2025 09/11/2028 4.477 1,000,000.00 1,031,570.00 101.5934 1,015,934.00 16,041.67 1,031,975.67CORP TOYOTA MOTOR CREDIT CORP 89236TLZ6 03/04/2026 03/21/2031 4.745 1,095,000.00 1,148,479.80 101.4809 1,111,215.85 15,512.50 1,126,728.35CORP TOYOTA MOTOR CREDIT CORP 89236TNX9 11/18/2025 11/01/2030 4.883 2,000,000.00 2,010,880.00 97.1626 1,943,252.00 13,833.33 1,957,085.33CD UBS Bank USA, National Association 90348JT91 10/06/2021 10/06/2026 1.000 249,000.00 249,000.00 100.0000 249,000.00 170.55 249,170.55CORP UNITED PARCEL SERVICE INC 911312CH7 12/12/2025 10/15/2030 4.475 2,000,000.00 2,055,640.00 100.6684 2,013,368.00 19,633.33 2,033,001.33US GOV UNITED STATES TREASURY 912833PC8 01/28/2025 02/15/2027 3.974 1,275,000.00 1,171,513.35 97.5625 1,243,921.88 0.00 1,243,921.88US GOV UNITED STATES TREASURY 912833PA2 09/24/2021 08/15/2026 3.675 1,000,000.00 956,170.00 99.5352 995,351.56 0.00 995,351.56US GOV UNITED STATES TREASURY 91282CCV1 08/07/2023 08/31/2028 4.169 2,300,000.00 1,990,978.90 93.7500 2,156,250.00 8,648.44 2,164,898.44US GOV UNITED STATES TREASURY 91282CEF4 06/01/2023 03/31/2027 4.015 1,000,000.00 956,129.00 98.8867 988,867.19 6,284.15 995,151.34US GOV UNITED STATES TREASURY 91282CFJ5 06/06/2025 08/31/2029 4.174 500,000.00 484,070.00 96.9141 484,570.31 5,222.49 489,792.80US GOV UNITED STATES TREASURY 91282CFY2 12/23/2024 11/30/2029 4.178 2,000,000.00 1,959,080.00 99.0430 1,980,859.38 6,564.21 1,987,423.59US GOV UNITED STATES TREASURY 91282CGB1 06/27/2025 12/31/2029 4.178 2,000,000.00 2,016,000.00 99.0234 1,980,468.74 210.60 1,980,679.34US GOV UNITED STATES TREASURY 91282CKJ9 02/13/2025 04/15/2027 4.038 2,000,000.00 2,012,188.00 100.3516 2,007,031.24 18,934.43 2,025,965.67US GOV UNITED STATES TREASURY 91282CLB5 12/23/2024 07/31/2026 3.758 1,000,000.00 1,002,641.00 100.0469 1,000,468.75 18,249.31 1,018,718.06MUNI UNIVERSITY CALIF REVS 91412HGF4 08/07/2023 05/15/2027 4.322 1,000,000.00 895,610.00 97.4443 974,442.52 1,681.56 976,124.07CD USAlliance Federal Credit Union 90352RDM4 01/27/2025 01/31/2029 4.150 249,000.00 249,000.00 100.0000 249,000.00 849.33 249,849.33 Investment Portfolio Detail - TR City - US Bank - Safekeeping (83145)Base Currency: USD As of 06/30/2026 Return to Table of Contents Dated: 07/13/2026 12

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* Weighted by: Base Market Value + Accrued. * Holdings Displayed by: Lot.

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Compliance Summary
Policies: .Rules: .* Compliance Status as of previous business day.

Compliant Account Policy Name Total Rules Compliant Rules Violating Rules Investment Policy Compliance Summary - TR City - US Bank - Safekeeping (83145)As of 06/30/2026 Return to Table of Contents Dated: 07/13/2026 14

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Rules: .

Contributors: .* Viewing Violators Only.* Compliance Status as of previous business day.

Investment Policy Voilations - TR City - US Bank - Safekeeping (83145)As of 06/30/2026 Return to Table of Contents Dated: 07/13/2026 15

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Description Identifier Security Type Effective Date Agency Old Value New Value Event Type BMW Bank of North America 05612LHC9 CD 06/24/2026 Moodys Stable Negative Outlook ChangedBMW Bank of North America 05612LHC9 CD 06/24/2026 Moodys Stable Negative Unimplied Outlook ChangedNVIDIA CORP 67066GAM6 CORP 06/11/2026 S&P AA- AA UpgradeNVIDIA CORP 67066GAM6 CORP 06/11/2026 S&P AA- AA Unimplied UpgradeSynchrony Bank 87164WD47 CD 06/08/2026 S&P Stable Positive Outlook ChangedSynchrony Bank 87164WD47 CD 06/08/2026 S&P Stable Positive Unimplied Outlook Changed Credit Events - TR City - US Bank - Safekeeping (83145)Base Currency: USD 06/01/2026 - 06/30/2026 Return to Table of Contents Dated: 07/13/2026 16

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City of Shafter, CA
YTD Budget Update as of 07/20/2026
Welcome to the City’s Budget Status Report, prepared by the Finance Department to deliver a transparent and detailed update on current budget performance. This report, presented on a monthly or quarterly basis, is crafted to inform the City Council and our valued citizens about the current state of the City’s finances. It compares the revised budget to year-to-date (YTD) actuals, providing a clear picture of our progress against the financial plan.

For additional context, we include YTD figures from the prior year for the same period, along with variance explanations to highlight key diƯerences and trends.

To oƯer a longer-term view, this report includes a six-year Compound Annual Growth Rate (CAGR), illustrating the City’s financial trajectory over time. The report covers a comprehensive range of areas, including citywide operations, the General Fund, Enterprise Funds, Internal Service Funds, Special Revenue Funds, Capital Improvement Program (CIP), and Capital Expenditures (CAPEX). Throughout, you’ll find tables, charts, and detailed analysis to enhance understanding and support informed decision-making. Please note that the results presented are subject to change during year-end adjustments, which may include interest income allocation, interfund charges, year-end accruals, and other refinements. Our aim is to provide an accessible, data-driven overview that underscores our commitment to fiscal responsibility and accountability.

Financial Analysis Approach
Analyzing financial data at a citywide level is both impractical and irrelevant due to the diƯering accounting practices among various entities, such as full accrual versus modified accrual. Combining governmental and enterprise funds makes it unfeasible to accurately summarize financial results.

Additionally, interfund charges may be duplicated when consolidating information, leading to potential misrepresentation. Therefore, financial data is best analyzed at the individual fund level. Later in this report, more detailed insights are provided into the General Fund, Water, Sewer, Refuse, and other specific funds.

Why Include Citywide Data?
If citywide analysis has limitations, why present it? Despite its challenges, a broad financial overview provides key insights. For example, understanding total labor costs and their trends can be valuable. It also helps assess labor costs as a percentage of overall operating expenses and evaluates the impact of utilities, such as power, on city operations. While this perspective oƯers useful context, the primary focus of this report remains on individual funds, where a more detailed financial analysis is provided.

Note: Citywide data applies only to the city's operational funds and excludes fiduciary and agency funds.

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Citywide Budget Comparison
The table below compares the citywide revised budget for operating expenses against current year-to-date (YTD) actuals. For context, YTD actuals from the same period last year are also included, along with year-over-year (YoY) changes. Additionally, a six-year Compound Annual Growth Rate (CAGR) is provided to highlight long-term trends. Red values within the CAGR indicate areas of high expense growth, which may signal financial concerns. These increases could be attributed to personnel expansion, service level adjustments, or inflationary pressures over the past few years.

The largest operating expense category is labor cost which represents of the total operating expenses.

Citywide Operating Expenses by Category
Account Category 25-26 Budget
25-26 YTD
Actual
25-26 %
of Budget
24-25 YTD
Actual YoY Change
YTD %
Change
Eight Yr
CAGR (19
to 26)
Labor Cost 24,622,332 22,642,926 92.0% 20,611,460 9.9% 2,031,466 8.5% Planned Operations 13,833,583 13,319,500 96.3% 10,344,033 28.8% 2,975,467 12.2% Utilities 4,886,372 4,623,721 94.6% 4,853,309 -4.7% (229,588) 7.9% Internal Charges 6,119,531 5,828,523 95.2% 6,175,639 -5.6% (347,116) 6.9% Debt - - 0.0% 534,042 -100.0% (534,042) -100.0%
Special Agreements 2,624,395 1,883,732 71.8% 2,433,256 -22.6% (549,524) -17.6% Citywide Operating Expenses $52,086,213 $48,298,402 92.7% 44,951,739 $3,346,663 7.4% 5.2% Given that labor costs are a significant component of the city’s operations, the following table presents labor costs by department. To further illustrate the distribution, a pie chart follows, breaking down labor costs by category. Police, as the largest category, is followed by Public Works. The Administrative category includes the City Manager’s OƯice, Information Technology, Finance, Human Resources, and City Clerk. The Services category consists of Building, Community Services, Planning, Economic Development, City Council, and the Planning Commission.

47.3%

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Citywide Labor Cost by Department
Department 25-26 Budget
25-26 YTD
Actual
25-26 %
of Budget
24-25 YTD
Actual YoY Change
YTD %
Change
Eight Yr
CAGR (19
to 26)
200-Police 10,733,843 9,198,746 85.7% 8,544,736 7.7% 654,010 9.0% 400-Public Works 5,656,897 5,459,793 96.5% 5,610,373 -2.7% (150,580) 6.2% 140-Finance 1,365,788 1,388,375 101.7% 1,014,303 36.9% 374,072 5.5% 405-Building 1,730,978 1,648,979 95.3% 1,267,023 30.1% 381,956 14.2% 300-Community Services 1,010,004 1,014,719 100.5% 816,719 24.2% 198,000 12.2% 500-Information Technology 838,748 865,975 103.2% 780,312 11.0% 85,663 10.1% 110-City Manager 653,536 666,020 101.9% 749,049 -11.1% (83,029) 8.6% 145-Planning 598,176 543,656 90.9% 491,820 10.5% 51,836 4.7% 135-Human Resources 796,967 769,730 96.6% 566,479 35.9% 203,251 12.6% 125-Economic Development 742,792 707,394 95.2% 435,630 62.4% 271,764 10.5% 120-City Clerk 367,722 255,447 69.5% 292,514 -12.7% (37,067) 0.5% 100-City Council 123,601 120,816 97.7% 39,225 208.0% 81,591 41.7% 105-Planning Commission 3,280 3,276 99.9% 3,278 -0.1% (2) 0.0% Grand Total $24,622,332 $22,642,926 92.0% 20,611,461 $2,031,465 9.9% 8.5% PD, 10,733,843 ,
44%
PW, 5,656,897 ,
23%
Amin, 4,194,017 ,
17%
Services, 4,037,575
, 16%

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The General Fund budget and financial information are subject to changes throughout the year as authorized by the City Council. Actual amounts are also subject to audits and year-end adjustments, including accruals, allocations, internal charges, and transfers.

The following table presents General Fund operating revenues and expenditures, excluding capital expenditures and CIP. This distinction is made because operating expenses are ongoing, whereas capital expenditures are typically one-time purchases that can be more easily controlled during periods of fiscal distress.

This table provides an overview of the General Fund, highlighting that approximately 90% of operating revenues come from taxes. On the expenditure side, labor costs represent the largest category. The summary table compares the budget to YTD actuals and prior-year figures while also including a sixPage 199 of 322 year Compound Annual Growth Rate (CAGR) to illustrate long-term trends.

General Fund Operating Revenues/Expenses
Account Category
25-26
Budget
25-26 YTD
Actual
25-26 %
of Budget
24-25 YTD
Actual YoY Change
YTD %
Change
Eight Yr
CAGR (19
to 26)
400-Prop Tax 8,204,663 9,751,496 118.9% 8,842,162 10.3% 909,334 11.5% 410-Sales Tax 18,004,238 20,514,589 113.9% 16,479,720 24.5% 4,034,869 1.2% 415-Franchise 1,605,395 1,574,758 98.1% 1,750,482 -10.0% (175,724) 13.1% 71-Fees for Service 1,412,609 1,098,084 77.7% 2,031,779 -46.0% (933,695) 3.4% 73-License & Permits 3,255,490 2,360,037 72.5% 2,073,221 13.8% 286,816 8.2% 74-Fines, Forfeitures, 24,846 25,853 104.1% 48,038 -46.2% (22,185) 49.0% 75-Rents & Concessions 555,432 281,112 50.6% 301,312 -6.7% (20,200) -3.2% 76-Investment Earnings 2,472,510 3,326,115 134.5% 2,893,278 15.0% 432,837 5.3% Total Revenues $35,535,183 $38,932,044 109.6% 34,419,992 $4,512,052 13.1% 4.2% Account Category
25-26
Budget
25-26 YTD
Actual
25-26 %
of Budget
24-25 YTD
Actual YoY Change
YTD %
Change
Eight Yr
CAGR (19
to 26)
Labor Cost 20,699,424 18,813,617 90.9% 16,984,104 10.8% 1,829,513 8.7% Planned Operations 7,401,723 6,057,557 81.8% 4,629,194 30.9% 1,428,363 8.7% Utilities 700,642 682,977 97.5% 617,601 10.6% 65,376 20.6% Internal Charges 3,734,016 3,501,975 93.8% 3,251,234 7.7% 250,741 10.9% Special Agreements 2,624,395 1,883,732 71.8% 2,433,256 -22.6% (549,524) -17.6% Total Operating Expenses $35,160,200 $30,939,858 88.0% 27,915,389 $3,024,469 10.8% 3.6% Operating Income (Loss) $374,983 $7,992,186 2131.3% 6,504,603 $1,487,583 22.9% 6.7% The following table presents General Fund operating expenditures by department.

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General Fund Operating Expenses by Department
Department 25-26 Budget
25-26 YTD
Actual
25-26 %
of Budget
24-25 YTD
Actual YoY Change
YTD %
Change
Eight Yr
CAGR
(19 to 26)
125-Economic Development 4,569,107 3,544,119 77.6% 3,474,459 2.0% 69,660 -12.1% 200-Police 13,944,967 12,467,235 89.4% 11,630,631 7.2% 836,604 10.0% 400-Public Works 6,485,295 6,095,666 94.0% 5,161,580 18.1% 934,086 9.4% 140-Finance 1,386,486 1,438,117 103.7% 1,176,744 22.2% 261,373 4.6% 405-Building 2,205,375 1,871,755 84.9% 1,673,624 11.8% 198,131 10.4% 300-Community Services 1,508,142 1,468,375 97.4% 1,342,427 9.4% 125,948 8.0% 145-Planning 1,382,989 944,228 68.3% 1,036,205 -8.9% (91,977) 10.2% 110-City Manager 814,531 851,929 104.6% 891,893 -4.5% (39,964) 10.0% 135-Human Resources 986,635 951,848 96.5% 764,967 24.4% 186,881 12.2% 130-City Attorney 711,500 530,474 74.6% 397,877 33.3% 132,597 6.3% 120-City Clerk 504,275 376,271 74.6% 412,435 -8.8% (36,164) 1.9% 100-City Council 482,618 321,325 66.6% 96,233 233.9% 225,092 18.7% 000-Non-Departmental - - 0.0% (147,387) -100.0% 147,387 0.0% 205-Fire 175,000 75,000 42.9% - 0.0% 75,000 0.0%
105-Planning Commission 3,280 3,516 107.2% 3,345 5.1% 171 0.0% 250-Emergency Operations - - 0.0% 357 -100.0% (357) 0.0% Operating Expenditures 35,160,200 30,939,858 88.0% 27,915,390 3,024,468 10.8% 3.6%

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The Water Fund is part of the city's Enterprise Funds, which operate like a business within the government. This means the water system is funded by the money it generates—mainly from water bills paid by residents and businesses—rather than taxes. These funds cover the costs of maintaining and improving the water infrastructure, including pipelines, pumps, and treatment facilities, ensuring a safe and reliable water supply for the community.

Water Fund Operating Revenues/Expenses
Account Category
25-26
Budget
25-26 YTD
Actual
25-26 %
of Budget
24-25 YTD
Actual YoY Change
YTD %
Change
Eight Yr
CAGR (19
to 26)
Revenues 5,511,575 6,115,453 111.0% 5,610,094 9.0% 505,359 3.5% Labor Costs 1,430,989 1,376,857 96.2% 1,412,348 -2.5% (35,491) 6.7% Planned Operations 1,131,505 1,383,625 122.3% 993,367 39.3% 390,258 13.4% Utilities 2,196,815 2,023,478 92.1% 2,198,125 -7.9% (174,647) 8.8% Internal Charges 1,139,319 1,136,220 99.7% 1,255,542 -9.5% (119,322) 11.2% Debt - - 0.0% - 0.0% - 0.0%
Operating Expenses 5,898,628 5,920,180 100.4% 5,859,382 $60,798 1.0% 9.6% Operating Income (Loss) ($387,053) $195,273 -50.5% (249,288) 444,561 -178.3% -24.3% The Sewer Fund is part of the city's Enterprise Funds, meaning it operates like a self-sustaining business. It is funded by fees paid by residents and businesses for sewer services, rather than tax dollars. This money is used to maintain, repair, and upgrade the sewer system, including pipelines and treatment facilities, to ensure safe and eƯicient wastewater collection and treatment for the community.

Sewer Fund Operating Revenues/Expenses
Account Category
25-26
Budget
25-26 YTD
Actual
25-26 %
of Budget
24-25 YTD
Actual YoY Change
YTD %
Change
Eight Yr
CAGR (19 to
26)
Operating Revenues 2,661,350 3,166,969 119.0% 3,808,275 -16.8% (641,306) 5.7% Labor Costs 633,604 585,417 92.4% 641,421 -8.7% (56,004) 10.8% Planned Operations 1,013,810 969,598 95.6% 952,005 1.8% 17,593 6.4% Utilities 110,265 102,347 92.8% 110,638 -7.5% (8,291) 19.4% Internal Charges 660,322 657,240 99.5% 733,914 -10.4% (76,674) 10.6% Debt - - 0.0% - 0.0% - -100.0%
Operating Expenses 2,418,001 2,314,602 95.7% 2,437,978 ($123,376) -5.1% 8.7% Operating Income (Loss) $243,349 $852,367 350.3% 1,370,297 (517,930) -37.8% 0.2%

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The Refuse Fund is part of the city's Enterprise Funds, which means it is funded by fees paid by residents and businesses for trash collection and waste disposal services, rather than tax dollars. However, refuse operations within the City Core area are now outsourced to American Refuse, while services in the Gossamer Grove area are handled by Varner Brothers. These service providers are responsible for collecting and disposing of waste eƯiciently, ensuring a clean and well-maintained community.

Refuse Fund Operating Revenues/Expenses
Account Category
25-26
Budget
25-26 YTD
Actual
25-26 % of
Budget
24-25 YTD
Actual YoY Change
YTD %
Change
Eight Yr
CAGR (19 to
26)
Operating Revenues 1,979,315 2,446,477 123.6% 2,214,092 10.5% 232,385 11.0% Labor Costs 70,910 83,620 117.9% 94,929 -11.9% (11,309) -14.6% Planned Operations 1,831,837 2,191,942 119.7% 1,942,469 12.8% 249,473 27.2% Utilities 38,230 30,839 80.7% 38,370 -19.6% (7,531) 49.5% Internal Charges - - 0.0% 285 -100.0% (285) -100.0%
Debt - - 0.0% - 0.0% - -100.0%
Operating Expenses 1,940,977 2,306,401 118.8% 2,076,053 $230,348 11.1% 11.9% Operating Income (Loss) $38,338 $140,076 365.4% 138,039 2,037 1.5% 1.6% The City of Shafter provides public transportation through its Dial-A-Ride program, a convenient, on-demand service that helps residents travel within the community. Riders pay a modest fee, while most the program’s operating costs are covered by subsidies from federal and state grants, including Section 5311, TDA (Transportation Development Act), LCTOP (Low Carbon Transit Operations Program), and other funding sources. The City is committed to sustainability, with most of its fleet being fully electric, reducing emissions and promoting cleaner transportation for the community.

Public Transit Fund Operating Revenues/Expenses
Account Category
25-26
Budget
25-26 YTD
Actual
25-26 %
of Budget
24-25 YTD
Actual YoY Change
YTD %
Change
Eight Yr
CAGR (19 to
26)
71-Fees for Service 43,794 32,107 73.3% 56,026 -42.7% (23,919) -7.0% 77-Grants & Donations 769,756 285,541 37.1% 538,448 -47.0% (252,907) 0.8% 78-Other Revenue - - 0.0% - 0.0% - 0.0%
79-Transfers-In - - 0.0% - 0.0% - 0.0%
Total Revenues 317,648 813,550 39.0% 594,474 -46.6% (276,826) -0.3% Labor Costs 508,776 493,233 96.9% 391,137 26.1% 102,096 12.1% Planned Operations 46,426 109,780 236.5% 48,077 128.3% 61,703 16.9% Utilities 26,000 20,988 80.7% 19,707 6.5% 1,281 11.1%
Internal Charges 178,480 178,488 100.0% 177,612 0.5% 876 10.1% Debt - - 0.0% - 0.0% - -100.0%
Operating Expenses 759,682 802,489 105.6% 636,533 $165,956 26.1% 11.9% Operating Income (Loss) 53,868 (484,841) -900.1% (580,507) 95,666 -16.5% 126.1%

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Special districts are areas within the City of Shafter where property owners pay dedicated fees to help maintain specific services and improvements in their neighborhoods. These districts include:

These districts ensure that specific areas receive the necessary maintenance and improvements without impacting the city’s general budget.

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The City of Shafter has four Internal Service Funds, which are used to support city operations by providing essential services to diƯerent departments.

These funds help the city operate smoothly by ensuring departments have the resources they need to serve the community eƯectively.

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The following table provides citywide capital expenses by department.

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MINUTES OF THE REGULAR MEETING OF THE

SHAFTER CITY COUNCIL
COUNCIL CHAMBER, 336 PACIFIC AVENUE

MEETING HELD IN-PERSON AND VIA ZOOM AND LIVESTREAM TO YOUTUBE TUESDAY, APRIL 21, 2026
CALL TO ORDER: 6:00 PM
ROLL CALL:

PRESENT: Mayor Givens, Mayor Pro Tem Olvera, and Council Members Alvarado, and Prout.

ABSENT: Council Member Espinoza with an excused absence. Also present: City Manager Lippincott, Public Works Director Gonzalez, Assistant City Manager James, City Attorney Martinez (via Zoom), City Clerk Pallares, Economic Development Coordinator Perez, IT Specialist Rogers, Deputy Information Technology Director Shultz, Sergeant York, and Community Engagement Manager Zermeno.

PLEDGE OF ALLEGIANCE: GROW Student Wyatt O’Brien
INVOCATION: Council Member Alvarado
APPROVAL OF AGENDA:

MOVED (PROUT) AND SECONDED (OLVERA) COUNCIL DETERMINED THERE WAS A NEED TO TAKE IMMEDIATE

ACTION AND THAT THE NEED FOR THE IMMEDIATE ACTION CAME TO THE ATTENTION OF THE COUNCIL SUBSEQUENT TO THE AGENDA BEING POSTED TO REMOVE CONSENT CALENDAR ITEM NO. 7 AND CLOSED SESSION ITEM NO. 1 AND APPROVED THE AGENDA AS AMENDED. MOTION CARRIED BY THE FOLLOWING VOTE:

AYES: ALVARADO, GIVENS, OLVERA, AND PROUT.

NAYS: NONE.

ABSENT: ESPINOZA.

ABSTENTIONS: NONE.

PRESENTATION:

1. Mayor Givens proclaimed April as Sexual Assault Awareness Month brought by Lideres de Campesinas.

PUBLIC COMMENT:

There were no members of the public wishing to speak.

COUNCIL ANNOUNCEMENTS AND REPORTS:

Council Member Alvarado announced that the Shafter Lions Club will host a 3rd of July Fireworks show after the Shafter Chamber announced the cancellation of their show.

On April 9, 2024 the City Council attended the State of the City address held at the Shafter Veterans Hall.

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Minutes of the Shafter City Council
April 21, 2026

Page 2 ends

Mayor Pro Tem Olvera participated in the Lions Club Food Drive.

CONSENT CALENDAR:

1. Approve General Checks: April 3, 2026, April 9, 2026.

2. Approve Payroll: March 31, 2026, April 3, 2026.

3. Council find the action is not defined as a “project” per Section 15378(b)(4) of the CEQA Guidelines; and accept the Treasurer’s Report for February 2026.

4. Approve Resolution of Commendation: 2026 Cinco de Mayo Grand Marshal Margaret Rodriguez Ramirez.

5. Council find the action is not defined as a “project” per Section 15378(b)(4) of the CEQA Guidelines; accept the 2025/2026 Mid-Year Budget update; and approve a minute order authorizing the Finance Director to implement minor budget adjustments within the Fiscal Year 2025/26 adopted budget to align revenues and expenditures with current projections and council-approved actions.

6. Council find the action is not defined as a "project" per Section 15378(b)(5) of the CEQA Guidelines; and adopt Resolution No. 3073, a Resolution of the City Council of the City of Shafter authorizing the Execution of the Certifications and Assurances and Authorized Agent Forms for the Low Carbon Transit Operations Program (LCTOP) and the following Project(s):

Shafter Dial-A-Ride Fare Reduction Program, up to the amount of $40,155 for Fiscal Year 2025-2026.

7. ITEM REMOVED FROM THE AGENDA. Council find the action is not defined as a “project” per Section 15378(b)(4) of the CEQA Guidelines; and approve the use of AB 33 fentanyl grant funds for the implementation of a timekeeping system, including mobile functionality, to support tracking, reporting, and evaluation of fentanyl-related efforts.

8. Council find the action is not defined as a “project” per Section 15378(b)(5) of the CEQA Guidelines; approve the Special Event Permit application submitted by the Lions Club of Shafter for the “Shafter 5K Run in Honor of Sgt. Moises Martinez” on May 30, 2026, including the requested temporary road alteration/closure on Fresno Avenue from Beech Avenue to Mannel Avenue.

9. Council find the action is not defined as a “project” per Section 15378(b)(5) of the CEQA Guidelines; and approve a Special Event Permit for the Shafter Cinco de Mayo Festival.

10. Council find the action is not defined as a “project” per Section 15378(b)(5) of the CEQA Guidelines; and approve a Special Event Permit for the Shafter Cinco de Mayo Festival Carnival.

11. Council find that the action is not defined as a “project” per Section 15378(b)(5) of the CEQA Guidelines; approve the addition of one (1) Library Supervisor position to the City’s staffing allocation within the Community Services Department to provide operational oversight of library services, enhance program delivery, and support expanded community engagement efforts.

12. Council find the action is exempt from the California Environmental Quality Act; and approve the purchase and installation of the additional License Plate Readers, live cameras, and a movable License Plate Reader trailer all purchased from Flock Safety in the amount of $65,250 initially and $40,000 per year annually starting in the second year.

13. Council find that the project is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301 (Existing Facilities); approve a budget amendment to CIP Project No. PF00004 to establish budget authority of $40,000 funded by a General Fund appropriation; accept the two informal bids received; and award a contract to Courts and Green,

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Minutes of the Shafter City Council
April 21, 2026

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the lowest responsive bidder, for the replacement of shade sails and refurbishment of shade structures at the Shafter Aquatics Center.

14. Council find that the action is exempt from the California Environmental Quality Act; approve the plans and specifications for the Tulare Avenue Pedestrian Improvement Project; and authorize staff to proceed with formal bidding for the Project.

15. Council find the action is not defined as a “project” per Section 15378(b)(5) of the CEQA Guidelines; and adopt Resolution No. 3072, a Resolution of the City Council of the City of Shafter approving the relinquishment of vehicular direct access rights along the southerly boundary of lots 11, 12,13, and 14 of Tract 7244 Phase 3 and authorize the execution and recordation of relinquishment document as described in Exhibit A; accept dedication of access rights from Lennar Homes of California, LLC and Millrose Properties California, LLC, as described in Exhibit B and depicted in Exhibit C of Dedication of Waiver of Direct Access; authorize the City Manager to execute said document; and authorize the City Engineer to record said document.

16. Council find the action has been previously exempted per the California Environmental Quality Act; and approve an amendment to the agreement with Krazan & Associates, Inc. to increase the not-to-exceed amount to $40,000 for materials testing and special inspection services associated with the Police Department Substation Project (Project No. PD00001).

17. Council find that the approval of the final map is not defined as a “project” per Section 15378(b)(5) of the CEQA Guidelines; approve the final map for Tract No. 7318, Phase 4.

18. Council find the action is not defined as a “project” per Section 15378(b)(5) of the CEQA Guidelines; approve an agreement for the completion of Public Improvements with KC Builders, LLC for Tract 7318-Phase 4 subject to review and approval by the City Attorney and City Engineer; and authorize the City Manager to execute said agreement.

19. Council find that the action was previously exempted from the California Environmental Quality Act; authorize the City Manager to approve a professional services agreement with Dee Jaspar & Associates, Inc. for construction management and inspection services for Well No. 22 and Well No. 23 in the amount up to $160,000; authorize a budget amendment of $80,000 to Project WA00016 and $80,000 to Project WA00020 funded by the water connection fee account.

20. Council find the action is not defined as a “project” per Section 15378(b)(2) of the CEQA Guidelines; and approve that the Mayor, on behalf of the Shafter City Council, execute a letter of support for Senate Bill 1216 (SB 1216).

MOVED (OLVERA) AND SECONDED (ALVARADO) COUNCIL APPROVED THE CONSENT CALENDAR AS AMENDED, WITH REMOVING ITEM NO. 9. MOTION CARRIED BY THE FOLLOWING VOTE:

AYES: ALVARADO, GIVENS, OLVERA, AND PROUT.

NAYS: NONE.

ABSENT: ESPINOZA.

ABSTENTIONS: NONE.

MANAGEMENT REPORT:

1. DECLARING 3 PROPERTIES (APNs 026-010-26, 090-211-02, AND PORTION OF 090- 211-04) AS NON-EXEMPT SURPLUS PROPERTIES: Economic Development Coordinator Perez made introductory comments.

MOVED (ALVARADO) AND SECONDED (PROUT) COUNCIL THAT THE ACTION IS NOT DEFINED AS A “PROJECT” PER SECTION 15378(B)(5) OF THE CEQA GUIDELINES; ADOPTED RESOLUTION 3074, A RESOLUTION OF THE

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Minutes of the Shafter City Council
April 21, 2026

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CITY COUNCIL OF THE CITY OF SHAFTER DECLARING PROPERTIES IDENTIFIED AS APNS 026-010-26, 090- 211-02, AND PORTION OF 090-211-04 NON-EXEMPT SURPLUS LAND; APPROVING THE FORM OF NOTICE OF AVAILABILITY; AND DIRECTING THE CITY MANAGER OR CITY MANAGER’S DESIGNEE TO COMPLY WITH THE REQUIREMENTS OF THE SURPLUS LAND ACT, GOVERNMENT CODE SECTION 54220 ET SEQ. MOTION CARRIED BY THE FOLLOWING VOTE:

AYES: ALVARADO, GIVENS, OLVERA, AND PROUT.

NAYS: NONE.

ABSENT: ESPINOZA.

ABSTENTIONS: NONE.

2. DECLARING PROPERTY LOCATED NEAR 390 S VALLEY STREET APN (026-360- 31) AS EXEMPT SURPLUS PROPERTY: Economic Development Coordinator Perez made introductory comments.

MOVED (OLVERA) AND SECONDED (ALVARADO) COUNCIL THAT THE ACTION IS NOT DEFINED AS A “PROJECT” PER SECTION 15378(B)(5) OF THE CEQA GUIDELINES; ADOPT RESOLUTION 3075, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SHAFTER DECLARING PROPERTY LOCATED NEAR 390 S VALLEY STREET, SHAFTER, CA 93263 (APN 026-360-31) AS EXEMPT SURPLUS LAND; AND DIRECTING THE CITY MANAGER OR CITY MANAGER’S DESIGNEE TO COMPLY WITH THE REQUIREMENTS OF THE SURPLUS LAND ACT, GOVERNMENT CODE SECTION 54220 ET SEQ. MOTION CARRIED BY THE FOLLOWING VOTE:

AYES: ALVARADO, GIVENS, OLVERA, AND PROUT.

NAYS: NONE.

ABSENT: ESPINOZA.

ABSTENTIONS: NONE.

3. WHOLESALE FIBER SERVICE AGREEMENTS APPROVAL: Deputy IT Director Shultz made introductory comments.

MOVED (OLVERA) AND SECONDED (PROUT) COUNCIL THE ACTION IS NOT DEFINED AS A “PROJECT” PER SECTION 15378(B)(2) OF THE CEQA GUIDELINES; AND APPROVE THE USE OF NEW WHOLESALE FIBER

SERVICE AGREEMENTS WITHIN THE CITY'S TELECOMMUNICATION DIVISION FOR ALL CURRENT AND FUTURE FIBER OPTIC CONNECTION CONTRACTS WITH OUTSIDE INTERNET SERVICE PROVIDERS. MOTION CARRIED BY THE FOLLOWING VOTE:

AYES: ALVARADO, GIVENS, OLVERA, AND PROUT.

NAYS: NONE.

ABSENT: ESPINOZA.

ABSTENTIONS: NONE.

CITY MANAGER COMMENTS AND REPORTS: No reports at this time.

DEPARTMENT DIRECTOR COMMENTS AND REPORTS: Public Works Director Gonzalez provided an update on the Shafter Aquatics Center and pool, North Park Community Park, and the substation at Gossamer Grove.

RECESS:

CLOSED SESSION:

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Minutes of the Shafter City Council
April 21, 2026

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1. ITEM REMOVED FROM THE AGENDA. CONFERENCE WITH LEGAL COUNSEL – SIGNIFICANT EXPOSURE TO LITIGATION: Pursuant to California Government Code, Section 54956.9(d)(2)/(e)(1). One Potential Case.

ADJOURNMENT:

MOVED (OLVERA) AND SECONDED (ALVARADO) COUNCIL ADJOURNED THE MEETING AT 6:37 P.M. MOTION CARRIED WITH NO OPPOSITION WITH COUNCIL MEMBER ESPINOZA ABSENT. _______________________________
Chad Givens, Mayor
ATTEST:
_______________________________
Yazmina Pallares, City Clerk

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MINUTES OF THE SPECIAL MEETING OF THE

SHAFTER CITY COUNCIL
COUNCIL CHAMBER, 336 PACIFIC AVENUE

MEETING HELD IN-PERSON AND VIA ZOOM AND LIVESTREAM ON YOUTUBE MONDAY, APRIL 27, 2026
CALL TO ORDER: 5:00 PM
ROLL CALL:

PRESENT: Mayor Givens, Mayor Pro Tem Olvera, and Council Members Alvarado, Espinoza, and Prout. Also present: City Manager Lippincott, Community Services Manager Bernal, Planning Director Esselman, Building Official Fidler, Assistant City Manager James, Public Works Director Gonzalez, Assistant Chief of Police Knox, City Clerk Pallares, Finance Director Sanchez, Police Lieutenant Stephens, Deputy IT Director Schultz, Economic Development Director Siada, and Deputy Public Works Director Torres.

APPROVAL OF AGENDA:

MOVED (ESPINOZA) AND SECONDED (OLVERA) COUNCIL APPROVED THE AGENDA AS PRESENTED. MOTION CARRIED BY THE FOLLOWING VOTE:

AYES: ALVARADO, ESPINOZA, GIVENS, OLVERA, AND PROUT.

NAYS: NONE.

ABSENT: NONE.

ABSTENTIONS: NONE.

PUBLIC COMMENT:

There were no members of the public wishing to speak.

MANAGEMENT REPORT:

1. FISCAL YEAR 2026/2027 OPERATING BUDGET WORKSHOP: City Manager Lippincott and Department Directors presented information related to requests for the proposed 2026/2027 budget.

COUNCIL APPROVED TO PREPARE THE FINAL PROPOSED 2025/2026 OPERATING BUDGET AND APPROVED ALL SPECIFIC DEPARTMENTAL BUDGET REQUESTS AS PRESENTED.

2. 2026-2031 CAPITAL IMPROVEMENT PROGRAM (CIP): Finance Director Sanchez presented information related to the 2026-2031 Capital Improvement Program.

COUNCIL RECEIVED THE FIVE-YEAR CAPITAL IMPROVEMENT PROGRAM (CIP) FOR FISCAL YEARS 2026- 2031.

ADJOURNMENT:

MOVED (PROUT) AND SECONDED (OLVERA) COUNCIL ADJOURNED THE MEETING AT 6:39 P.M. MOTION CARRIED WITH NO OPPOSITION.

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Minutes of the Shafter City Council
April 27, 2025

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_______________________________
Chad Givens, Mayor
ATTEST:
_______________________________
Yazmina Pallares, City Clerk

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CONSENT CALENDAR

CITY OF SHAFTER

CITY COUNCIL REPORT
MEETING DATE: August 4, 2026
DEPARTMENT: Paula Soto, GIS Coordinator
SUBJECT: SMALL GOVERNMENT ENTERPRISE LICENSE ANNUAL
RENEWAL WITH ESRI, INC. (MAPPING SERVICES) APPROVAL

RECOMMENDATION
Council find the action is not a “project” as defined by Section 15378(b)(4) of the CEQA Guidelines; and authorize the GIS Coordinator to approve the annual renewal payment of City's Small Government Enterprise License Agreement in the amount of $42,200 by way of Quote #26358463, dated June 8, 2026, to Environmental Systems Research Institute, Inc. (ESRI) for continued use of citywide mapping resources.

BACKGROUND
Departments throughout the City continue to rely on the City's Enterprise Geographic Information System (GIS) to support daily operations. Enterprise GIS applications, maps, dashboards, and mobile tools provide staff with timely, reliable information both in the office and in the field. Access to centralized spatial data enables staff to make informed decisions regarding City infrastructure, assets, maintenance activities, planning efforts, public safety operations, and other day-to-day business functions. In doing so, it allows different City departments to better serve the community. This annual renewal represents the second payment under the City's current three-year Small Government Enterprise Agreement (SGEA) with Esri. The agreement remains in effect through August 2028, with an annual cost of $42,200.

Staff across multiple departments continue to leverage GIS dashboards, mobile applications, and interactive web maps to access current information, collect field data, and streamline daily workflows. These tools reduce redundant data entry, improve communication between departments, and provide decision-makers with current information when responding to operational needs. All of these services are made possible through our SGEA, and have now become integral into many departments' decision-making process. One of the most significant initiatives this fiscal year is the implementation of RIMS Map 18 for the Police Department. This project modernizes the department's mapping capabilities while replacing legacy infrastructure with a webbased platform integrated into the City's Enterprise GIS environment. Additionally, the GIS Division plans to bolster our ability to handle GIS server outages with an installation of ArcGIS Monitor in Q1 of FY 2026/27. This new system will enable staff to identify and resolve performance issues before they impact users. These enhanced

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SMALL GOVERNMENT ENTERPRISE LICENSE ANNUAL RENEWAL WITH ESRI, INC. (MAPPING

SERVICES) APPROVAL
- 2 -
monitoring capabilities will reduce reliance on third-party technical support, improve system reliability and response times while also lowering long-term support costs.

FISCAL IMPACT
Operational funds from multiple city departments have been allocated in the Fiscal Year 2026-2027 operating budget to adequately absorb the annual renewal cost of $42,200.

No additional fiscal action is required.

CEQA ANALYSIS
The action is not a “project” as defined by Section 15378(b)(4) of the CEQA Guidelines because it is the approval of the annual renewal payment to Environmental Systems Research Institute, Inc. (ESRI) for continued use of citywide mapping resources. The action constitutes a governmental fiscal activity that does not commit funds to a specific project with the potential to result in a significant environmental impact.

APPROVED BY THE CITY ATTORNEY
Not Applicable

ATTACHMENTS

1. Esri Quotation 26358463

2. Esri 3-Year SGEA Renewal

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Subject: Renewal Quotation
Date: 06/08/2026
To: Chris Schultz
Organization: City of Shafter
GIS Office
Fax #: Phone #: 661-746-5086
From: Michael Mann
Fax #: Phone #: +19093695000 Ext. 5000
Email: [email protected]
Number of pages transmitted Quotation #26358463
(including this cover sheet): 4 Document Date: 06/08/2026 Please find the attached quotation for your forthcoming term. Keeping your term current may entitle you to exclusive benefits, and if you choose to discontinue your coverage, you will become ineligible for these valuable benefits and services.

If your quote is regarding software maintenance renewal, visit the following website for details regarding the maintenance program benefits at your licensing level
https://www.esri.com/en-us/cp/maintenance
All maintenance fees from the date of discontinuation will be due and payable if you decide to reactivate your coverage at a later date.

Please note: Certain programs and license types may have varying benefits. Complimentary User Conference registrations, software support, and software and data updates are not included in all programs.

Customers who have multiple copies of certain Esri licenses may have the option of supporting some of their licenses with secondary maintenance.

For information about the terms of use for Esri products as well as purchase order terms and conditions, please visit
http://www.esri.com/legal/licensing/software-license.html If you have any questions or need additional information, please contact Customer Service at 888-377-4575 option 5.

Esri Inc
380 New York Street
Redlands CA 92373

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Per the terms and conditions in your Esri Enterprise License Agreement, your organization is required to provide an annual usage report. This report should detail all deployments made under this agreement for your previous term, and should be provided to Esri as an Excel spreadsheet.

The annual usage report must include actual license counts by product, licensee, and location.

Please return your report via email to [email protected].

Thank you in advance for your prompt attention to this matter. 10 1 193205 42,200.00 42,200.00
Populations of 25,001 to 50,000 Small Government Enterprise Agreement Annual Subscription
Start Date: 08/31/2026
End Date: 08/30/2027
Subscription ID: 2124088197
City of Shafter
GIS Office
720 Commerce Way
Shafter CA 93263-9530
Attn: Chris Schultz
Email: [email protected]
Phone: 661-746-5086
_______________________________________________________________________ Please note Esri has introduced a price change and this quote reflects current pricing for your organization. It is important to us that we are able to continue to deliver value through enhancements to products, solutions, and capabilities.

Your renewal provides access to all the benefits you are familiar with, which you can review at https://go.esri.com/maintenance For questions related to the price change, please reach out to your assigned Esri Account Manager.

Quotation is valid for 90 days from document date.

Any estimated sales and/or use tax has been calculated as of the date of this quotation and is merely provided as a convenience for your organization's budgetary purposes. Esri reserves the right to adjust and collect sales and/or use tax at the actual date of invoicing. If your organization is tax exempt or pays state taxes directly, then prior to invoicing, your organization must provide Esri with a copy of a current tax exemption certificate issued by your state's taxing authority for the given jurisdiction.

Esri may charge a fee to cover expenses related to any customer requirement to use a proprietary vendor management, procurement, or invoice program.

To expedite your order, please reference your customer number and this quotation number on your purchase order.

Send Purchase Orders To:

Environmental Systems Research Institute, Inc.
380 New York Street
Redlands, CA 92373-8100
Attn: Michael Mann
Please include the following remittance address
on your Purchase Order:

Environmental Systems Research Institute, Inc.

P.O. Box 741076
Los Angeles, CA 90074-1076
Item Qty Material# Unit Price Extended Price
_______________________________________________________________________________ _______________________________________________________________________________ Date: 06/08/2026 Quotation Number: 26358463 Contract Number: SMALL GOVT ELA US 380 New York Street
Redlands, CA 92373
Phone: +190936950005000
Customer Number: 123969
For questions regarding this document, please contact Customer Service at 888-377-4575.

Quotation
_______________________________________________________________________________

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Item Subtotal 42,200.00
Estimated Tax 0.00
Total USD 42,200.00
DUNS/CEC: 06-313-4175 CAGE: 0AMS3
Item Qty Material# Unit Price Extended Price
_______________________________________________________________________________ _______________________________________________________________________________

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Date: 06/08/2026 Quotation Number: 26358463 Contract Number: SMALL GOVT ELA US 380 New York Street
Redlands, CA 92373
Phone: +190936950005000
Quotation

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To expedite processing, please reference the quotation number and any/all applicable Esri contract number(s) (e.g. MPA, EA, GSA, BPA) on your ordering document.

If you choose to discontinue your support, you will become ineligible for support benefits and services. All maintenance fees from the date of discontinuation will be due and payable if you decide to reactivate your support coverage at a later date.

The items on this quotation are subject to and governed by the terms of this quotation, the most current product specific scope of use document
found at http://assets.esri.com/content/dam/esrisites/media/legal/product-specific-terms-of-use/e300.pdf, and your applicable signed agreement with Esri. If no such agreement covers any item quoted, then Esri's standard terms and conditions found at http://assets.esri.com/content/dam/esrisites/media/legal/ma-full/ma-full.pdf apply to your purchase of that item. Federal government entities and government prime contractors authorized under FAR 51.1 may purchase under the terms of Esri's GSA Federal Supply Schedule. Supplemental terms and conditions found at http://www.esri.com/en-us/legal/terms/state-supplemental apply to some state and local government purchases.

All terms of this quotation will be incorporated into and become part of any additional agreement regarding Esri's offerings. Acceptance of this quotation is limited to the terms of this quotation. Esri objects to and expressly rejects any different or additional terms contained in any purchase order, offer, or confirmation sent to or to be sent by buyer. Unless prohibited by law, the quotation information is confidential and may not be copied or released other than for the express purpose of system selection and purchase/license. The information may not be given to outside parties or used for any other purpose without consent from Esri. Delivery is FOB Origin.

Item Qty Material# Unit Price Extended Price
_______________________________________________________________________________ _______________________________________________________________________________

Page 3 ends

Date: 06/08/2026 Quotation No: 26358463 Customer No: 123969 Contract No: SMALL GOVT ELA US 380 New York Street
Redlands, CA 92373
Phone: +190936950005000
Quotation

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CONSENT CALENDAR

CITY OF SHAFTER

CITY COUNCIL REPORT
MEETING DATE: August 4, 2026
DEPARTMENT: Chris Schultz, Deputy IT Director
SUBJECT: APPROVAL OF OPERATING SERVICES ANNUAL PAYMENT
FOR P3 PARTNERSHIP AGREEMENT WITH SMART FIBER
NETWORKS IN THE AMOUNT OF $99,000

RECOMMENDATION
Council find the action is not a “project” as defined by Section 15378(b)(4) of the CEQA Guidelines; approve the annual payment to Smart Fiber Networks for operating services related to the Partnership Agreement dated July 21, 2025; and authorize the Deputy IT Director to make the annual payment in the amount of $99,000.

BACKGROUND
As part of the City's Public-Private Partnership (P3) Agreement with Smart Fiber Networks, the City is contractually obligated to pay an annual fee for services pertaining to the design, construction, maintenance, general operations, and commercialization work served on the City's fiber optic network, and the P3 Agreement outlines the operating services costs in the amount of $99,000 on pages 20-21. In the current fiscal year, Smart Fiber Networks plans on utilizing these operating funds to continue supporting the City's requirement to submit fiber design-engineering services to developers in support of the Mission Lakes and Orchard Park subdivisions. Additionally, these funds will support Syber Fiber's desire to secure and occupy a commercial business property (via lease) that will be dedicated as a public storefront for Shafter Online.

FISCAL IMPACT
City's Enterprise Fiber Fund will absorb cost associated with annual operating services payment to Smart Fiber Networks; no additional fiscal action is needed at this time.

CEQA ANALYSIS
The action is not a “project” as defined by Section 15378(b)(4) of the CEQA Guidelines because it is the approval of an annual payment for operating services to Smart Fiber Networks. The action constitutes a governmental fiscal activity that does not commit funds to a specific project with the potential to result in a significant environmental impact.

APPROVED BY THE CITY ATTORNEY

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APPROVAL OF OPERATING SERVICES ANNUAL PAYMENT FOR P3 PARTNERSHIP AGREEMENT WITH SMART FIBER NETWORKS IN THE AMOUNT OF $99,000
- 2 -
Not Applicable

ATTACHMENTS

1. Shafter-Smart Fiber Networks P3 Agreement

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1 CITY OF SHAFTER

CONSULTANT AND PROFESSIONAL SERVICES AGREEMENT
This Consultant and Professional Services Agreement is made and entered into as of July 18, 2025 by and between the City of Shafter, a municipal corporation organized and operating under the laws of the State of California with its principal place of business at 336 Pacific Avenue, Shafter, California 93263 (“City”), and Smart Fiber Networks, dba Syber Fiber, a California corporation with its principal place of business at 400 Santa Clara St, Suite 100, Vallejo, CA 94590 (hereinafter referred to as “Consultant”). City and Consultant are sometimes individually referred to as “Party” and collectively as “Parties” in this Agreement.

RECITALS
A. City is a public agency of the State of California and owns a fiber optic network described in Attachment 2, and is in need of professional services for the following project:

Public-Private Partnership for Development, Expansion, and Broadband Internet Access Service for the City’s Municipal Fiber Optic Network (hereinafter referred to as “the Project”).

B. Consultant currently has access to utility poles and attached conduit through an existing arrangement with Atherton Fiber, LLC, a duly licensed competitive local carrier (U-7318- C) that also owns Open5G Inc., another duly licensed competitive local carrier (U-7379-C), and is in the process of acquiring the CPCN of Open5G, Inc., and as such, has all the necessary qualifications to provide services described in this Agreement.

C. The Parties desire by this Agreement to establish the terms for City to retain Consultant to provide the services described herein.

AGREEMENT
NOW, THEREFORE, IT IS AGREED AS FOLLOWS:

1. Services.

Consultant shall provide the City with the services described in the Scope of Services attached hereto as Exhibit “A” along with all terms and conditions set forth in this Agreement.

2. Compensation and Other Network Expenses.
a. Subject to paragraph 2(b) below, the City shall pay for such services in accordance with the Compensation set forth in Exhibit “B”. b. The payments specified in Exhibit “B” shall be the only payments made to Consultant for services rendered pursuant to this Agreement. c. City shall procure and pay for the other network expenses set forth in Exhibit “C”.

3. Additional Services.

Docusign Envelope ID: 7589A09B-89B5-4B81-8286-59FD89D637C4

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2 Additional Services are those services related to the Scope of Services of the Consultant set forth in Exhibit “A” but not anticipated at the time of execution of this Agreement. If changes in the Scope of Services seem merited by Consultant or the City, and informal consultations with the other party indicate that a change is warranted, Consultant shall provide a letter outlining the proposed changes to the City with a statement of estimated changes in fees or time schedule.

Additional Services shall be provided only when a Supplement Agreement or an amendment to this Agreement authorizing such Additional Services is approved by the City Representative, or his or her designee. City reserves the right to perform any Additional Services with its own staff or to retain other Consultants to perform said Additional Services. Such amendment shall not render ineffective or invalidate unaffected portions of this Agreement.

4. Maintenance of Records.

Books, documents, papers, accounting records, and other evidence pertaining to costs incurred shall be maintained by Consultant and made available at all reasonable times during the contract period and for three (3) years from the termination date of the Agreement and, while under the terms of this Agreement, be made available for inspection by City.

5. Term.

The term of this Agreement shall commence on July 18, 2025 and shall continue in full force and effect until July 17, 2030, unless earlier terminated as provided herein.

The City shall, at its discretion, have the right to extend the term of this Agreement, in intervals of one (1) or two (2) years, by written notice to the Consultant. The total duration of this Agreement, including the exercise of any extensions under this section, shall not exceed fifteen (15) years. Consultant shall perform its services in a prompt and timely manner within the term of this Agreement and shall commence performance upon receipt of written notice from the City to proceed (“Notice to Proceed”).

If the term of this Agreement extends into fiscal years subsequent to that in which it is approved, such continuation of the Agreement is contingent on the appropriation of funds for such purpose by the City Council of the City of Shafter. If funds to effect such continued payment are not appropriated, Consultant agrees to terminate any services supplied to City under this Agreement, and relieve City of any further obligation therefore.

6. Delays in Performance.
a. Neither City nor Consultant shall be considered in default of this Agreement for delays in performance caused by circumstances beyond the reasonable control of the nonperforming party. For purposes of this Agreement, such circumstances include but are not limited to, abnormal weather conditions; floods; earthquakes; fire; epidemics; war; riots and other civil disturbances; strikes, lockouts, work slowdowns, and other labor disturbances; sabotage or judicial restraint.
b. Should such circumstances occur, the non-performing party shall, within a reasonable time of being prevented from performing, give written notice to the other party describing the circumstances preventing continued performance and the efforts being made to resume performance of this Agreement.

7. Compliance with Law.

Docusign Envelope ID: 7589A09B-89B5-4B81-8286-59FD89D637C4

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3 a. Consultant shall comply with all applicable laws, ordinances, codes and regulations of the federal, state and local government, including Cal/OSHA requirements. b. Consultant shall be solely responsible for obtaining and maintaining all Authorizations and permits required of Consultant by federal, state and local regulatory agencies. c. If applicable, Consultant is responsible for all costs of clean up and/ or removal of hazardous and toxic substances spilled as a result of his or her services or operations performed under this Agreement.
d. Consultant shall not be obligated to perform work that would violate applicable law.

8. Standard of Care.

Consultant’s services will be performed in accordance with generally accepted professional practices and principles and in a manner consistent with the level of care and skill ordinarily exercised by members of the profession currently practicing under similar conditions.

9. Assignment and Subconsultant.

Consultant shall not assign, sublet, or transfer this Agreement or any rights under or interest in this Agreement without the written consent of the City, which may be withheld for any reason. Any attempt to so assign or so transfer without such consent shall be void and without legal effect and shall constitute grounds for termination. Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement. Nothing contained herein shall prevent Consultant from employing independent associates, and subconsultants as Consultant may deem appropriate to assist in the performance of services hereunder.

10. Independent Contractor.

Consultant is retained as an independent contractor and is not an employee of City. No employee or agent of Consultant shall become an employee of City. The work to be performed shall be in accordance with the Scope of Services described in this Agreement, subject to such directions and amendments from City as herein provided.

11. Insurance. Consultant shall not commence work for the City until it has provided evidence satisfactory to the City it has secured all insurance required under this section. In addition, Consultant shall not allow any subcontractor to commence work on any subcontract until it has secured all insurance required under this section. a. Commercial General Liability
(i) The Consultant shall take out and maintain, during the performance of all work under this Agreement, in amounts not less than specified herein, Commercial General Liability Insurance, in a form and with insurance companies acceptable to the City. (ii) Coverage for Commercial General Liability insurance shall be at least as broad as the following:

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4 (1) Insurance Services Office Commercial General Liability coverage (Occurrence Form CG 00 01) or exact equivalent. (iii) Commercial General Liability Insurance must include coverage for the following:
(1) Bodily Injury and Property Damage
(2) Personal Injury/Advertising Injury
(3) Premises/Operations Liability
(4) Products/Completed Operations Liability
(5) Aggregate Limits that Apply per Project
(6) Explosion, Collapse and Underground (UCX) exclusion deleted
(7) Contractual Liability with respect to this Agreement (8) Property Damage
(9) Independent Consultants Coverage
(iv) The policy shall contain no endorsements or provisions limiting coverage for (1) contractual liability; (2) cross liability exclusion for claims or suits by one insured against another; (3) products/completed operations liability; or (4) contain any other exclusion contrary to the Agreement.
(v) The policy shall give City, its officials, officers, employees, agents and City designated volunteers additional insured status using ISO endorsement forms CG 20 10 10 01 and 20 37 10 01, or endorsements providing the exact same coverage. (vi) The general liability program may utilize either deductibles or provide coverage excess of a self-insured retention, subject to written approval by the City, and provided that such deductibles shall not apply to the City as an additional insured. b. Automobile Liability
(i) At all times during the performance of the work under this Agreement, the Consultant shall maintain Automobile Liability Insurance for bodily injury and property damage including coverage for owned, non-owned and hired vehicles, in a form and with insurance companies acceptable to the City.
(ii) Coverage for automobile liability insurance shall be at least as broad as Insurance Services Office Form Number CA 00 01 covering automobile liability (Coverage Symbol 1, any auto).
(iii) The policy shall give City, its officials, officers, employees, agents and City designated volunteers additional insured status. (iv) Subject to written approval by the City, the automobile liability program may utilize deductibles, provided that such deductibles shall not apply to the City as an additional insured, but not a self-insured retention.
c. Workers’ Compensation/Employer’s Liability
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5 (i) Consultant certifies that he/she is aware of the provisions of Section 3700 of the California Labor Code which requires every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions of that code, and he/she will comply with such provisions before commencing work under this Agreement.
(ii) To the extent Consultant has employees at any time during the term of this Agreement, at all times during the performance of the work under this Agreement, the Consultant shall maintain full compensation insurance for all persons employed directly by him/her to carry out the work contemplated under this Agreement, all in accordance with the “Workers’ Compensation and Insurance Act,” Division IV of the Labor Code of the State of California and any acts amendatory thereof, and Employer’s Liability Coverage in amounts indicated herein. Consultant shall require all subconsultants to obtain and maintain, for the period required by this Agreement, workers’ compensation coverage of the same type and limits as specified in this section.
d. Professional Liability (Errors and Omissions)
At all times during the performance of the work under this Agreement the Consultant shall maintain professional liability or Errors and Omissions insurance appropriate to its profession, in a form and with insurance companies acceptable to the City and in an amount indicated herein.

This insurance shall be endorsed to include contractual liability applicable to this Agreement and shall be written on a policy form coverage specifically designed to protect against acts, errors or omissions of the Consultant. “Covered Professional Services” as designated in the policy must specifically include work performed under this Agreement. The policy must “pay on behalf of” the insured and must include a provision establishing the insurer's duty to defend. e. Consultant Liability
Covering all Consultant’s officers and employees, for loss of City proceeds caused by dishonesty and/or theft. Coverage shall be sufficiently broad to respond to the duties and obligations as is undertaken by the Consultant in this Agreement and shall include, but not be limited to, claims involving infringement of intellectual property, including but not limited to infringement of copyright, trademark, trade dress, invasion of privacy violations, information theft, damage to or destruction of electronic information, release of private information or personally identifiable information (PII), alteration of electronic information, extortion, and network security. f. Minimum Policy Limits Required
(i) The following insurance limits are required for the Agreement:

Minimum Limit Requirements
Commercial General Liability $1,000,000 per occurrence/ $2,000,000 aggregate for bodily injury, personal injury, and property
damage
Automobile Liability $1,000,000 combined single limit
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6 Professional Liability $1,000,000 per claim and aggregate (errors and omissions)
(ii) Defense costs shall be payable in addition to the limits. (iii) Requirements of specific coverage or limits contained in this section are not intended as a limitation on coverage, limits, or other requirement, or a waiver of any coverage normally provided by any insurance. Any available coverage shall be provided to the Parties required to be named as Additional Insured pursuant to this Agreement. g. Evidence Required
Prior to execution of the Agreement, the Consultant shall file with the City evidence of insurance from an insurer or insurers certifying to the coverage of all insurance required herein. Such evidence shall include original copies of the ISO CG 00 01 (or insurer’s equivalent) signed by the insurer’s representative and Certificate of Insurance (Acord Form 25-S or equivalent), together with required endorsements. All evidence of insurance shall be signed by a properly authorized officer, agent, or qualified representative of the insurer and shall certify the names of the insured, any additional insureds, where appropriate, the type and amount of the insurance, the location and operations to which the insurance applies, and the expiration date of such insurance.
h. Policy Provisions Required
(i) Consultant shall provide the City at least thirty (30) days prior written notice of cancellation of any policy required by this Agreement, except that the Consultant shall provide at least ten (10) days prior written notice of cancellation of any such policy due to non-payment of premium. If any of the required coverage is cancelled or expires during the term of this Agreement, the Consultant shall deliver renewal certificate(s) including the General Liability Additional Insured Endorsement to the City at least ten (10) days prior to the effective date of cancellation or expiration.
(ii) The Commercial General Liability Policy and Automobile Policy shall each contain a provision stating that Consultant’s policy is primary insurance and that any insurance, self-insurance or other coverage maintained by the City or any named insureds shall not be called upon to contribute to any loss.
(iii) The retroactive date (if any) of each policy is to be no later than the effective date of this Agreement. Consultant shall maintain such coverage continuously for a period of at least three years after the completion of the work under this Agreement. Consultant shall purchase a one (1) year extended reporting period A) if the retroactive date is advanced past the effective date of this Agreement; B) if the policy is cancelled or not renewed; or C) if the policy is replaced by another claims-made policy with a retroactive date subsequent to the effective date of this Agreement.
(iv) All required insurance coverages, except for the professional liability coverage, shall contain or be endorsed to provide a waiver of subrogation in favor of the City, its officials, officers, employees, agents, and volunteers or shall specifically allow Consultant or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Consultant hereby waives its own right of recovery against City, Docusign Envelope ID: 7589A09B-89B5-4B81-8286-59FD89D637C4

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7 and shall require similar written express waivers and insurance clauses from each of its subconsultants.
(v) The limits set forth herein shall apply separately to each insured against whom claims are made or suits are brought, except with respect to the limits of liability.

Further the limits set forth herein shall not be construed to relieve the Consultant from liability in excess of such coverage, nor shall it limit the Consultant’s indemnification obligations to the City and shall not preclude the City from taking such other actions available to the City under other provisions of the Agreement or law.
i. Qualifying Insurers
(i) All policies required shall be issued by acceptable insurance companies, as determined by the City, which satisfy the following minimum requirements:
(1) Each such policy shall be from a company or companies with a current A.M. Best's rating of no less than A:VII and admitted to transact in the business of insurance in the State of California, or otherwise allowed to place insurance through surplus line brokers under applicable provisions of the California Insurance Code or any federal law.
j. Additional Insurance Provisions
(i) The foregoing requirements as to the types and limits of insurance coverage to be maintained by Consultant, and any approval of said insurance by the City, is not intended to and shall not in any manner limit or qualify the liabilities and obligations otherwise assumed by the Consultant pursuant to this Agreement, including but not limited to, the provisions concerning indemnification.
(ii) If at any time during the life of the Agreement, any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced, City has the right but not the duty to obtain the insurance it deems necessary, and any premium paid by City will be promptly reimbursed by Consultant or City will withhold amounts sufficient to pay premium from Consultant payments. In the alternative, City may cancel this Agreement.
(iii) The City may require the Consultant to provide complete copies of all insurance policies in effect for the duration of the Project. (iv) Neither the City nor any of its officials, officers, employees, agents or volunteers shall be personally responsible for any liability arising under or by virtue of this Agreement.
k. Subconsultant Insurance Requirements. Consultant shall not allow any subcontractors or subconsultants to commence work on any subcontract until they have provided evidence satisfactory to the City that they have secured all insurance required under this section.

Policies of commercial general liability insurance provided by such subcontractors or subconsultants shall be endorsed to name the City as an additional insured using ISO form CG 20 38 04 13 or an endorsement providing the exact same coverage. If requested by Consultant, City may approve different scopes or minimum limits of insurance for particular subcontractors or subconsultants.

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8 12. Indemnification.
a. To the fullest extent permitted by law, Consultant shall defend (with counsel of City’s choosing), indemnify and hold the City, its officials, officers, employees, volunteers, and agents free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury of any kind, in law or equity, to property or persons, including wrongful death, in any manner arising out of, pertaining to, or incident to any acts, errors or omissions, or willful misconduct of Consultant, its officials, officers, employees, subcontractors, consultants or agents in connection with the performance of the Consultant’s services, the Project or this Agreement, including without limitation the payment of all damages, expert witness fees and attorney’s fees and other related costs and expenses. Consultant's obligation to indemnify shall not be restricted to insurance proceeds, if any, received by Consultant, the City, its officials, officers, employees, agents, or volunteers.
b. To the extent required by Civil Code section 2782.8, which is fully incorporated herein, Consultant’s obligations under the above indemnity shall be limited to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant, but shall not otherwise be reduced. If Consultant’s obligations to defend, indemnify, and/or hold harmless arise out of Consultant’s performance of “design professional services” (as that term is defined under Civil Code section 2782.8), then upon Consultant obtaining a final adjudication that liability under a claim is caused by the comparative active negligence or willful misconduct of the City, Consultant’s obligations shall be reduced in proportion to the established comparative liability of the City and shall not exceed the Consultant’s proportionate percentage of fault.
c. To the fullest extent permitted by law, the City shall defend, indemnify, and hold harmless the Consultant, its officers, directors, employees, subcontractors, and agents from any and all claims, liabilities, damages, losses, and expenses, including attorney’s fees, arising out of or resulting from the negligent acts, errors, or omissions or willful misconduct of the City, its officials, officers, employees, or agents in connection with this Agreement. d. Consultant’s total liability for all claims under this Agreement, whether in contract, tort, or otherwise, shall not exceed six (6) million dollars or the twelve (12) month average revenue share to the City for the remainder of the Agreement term, whichever is greater, except for liability arising from Consultant’s gross negligence or willful misconduct. In no event shall either Party be liable to the other for any indirect, incidental, consequential, special, or punitive damages arising out of or relating to this Agreement.

13. California Labor Code Requirements.
a. Consultant is aware of the requirements of California Labor Code Sections 1720 et seq. and 1770 et seq., which require the payment of prevailing wage rates and the performance of other requirements on certain “public works” and “maintenance” projects (“Prevailing Wage Laws”). If the services are being performed as part of an applicable “public works” or “maintenance” project, as defined by the Prevailing Wage Laws, and if the total compensation is $15,000 or more for maintenance or $25,000 or more for construction, alteration, demolition, installation, or repair, Consultant agrees to fully comply with such Prevailing Wage Laws. Consultant shall defend, indemnify and hold the City, its officials, officers, employees and agents free and harmless from any claims, liabilities, costs, penalties or interest arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. It shall be mandatory upon Docusign Envelope ID: 7589A09B-89B5-4B81-8286-59FD89D637C4

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9 the Consultant and all subconsultants to comply with all California Labor Code provisions, which include but are not limited to prevailing wages (Labor Code Sections 1771, 1774 and 1775), employment of apprentices (Labor Code Section 1777.5), certified payroll records (Labor Code Sections 1771.4 and 1776), hours of labor (Labor Code Sections 1813 and 1815) and debarment of contractors and subcontractors (Labor Code Section 1777.1). b. If the services are being performed as part of an applicable “public works” or “maintenance” project and if the total compensation is $15,000 or more for maintenance or $25,000 or more for construction, alteration, demolition, installation, or repair, then pursuant to Labor Code Sections 1725.5 and 1771.1, the Consultant and all subconsultants performing such services must be registered with the Department of Industrial Relations. Consultant shall maintain registration for the duration of the Project and require the same of any subconsultants, as applicable. This Project may also be subject to compliance monitoring and enforcement by the Department of Industrial Relations. It shall be Consultant’s sole responsibility to comply with all applicable registration and labor compliance requirements. c. This Agreement may also be subject to compliance monitoring and enforcement by the Department of Industrial Relations. It shall be Consultant’s sole responsibility to comply with all applicable registration and labor compliance requirements. Any stop orders issued by the Department of Industrial Relations against Consultant or any subcontractor that affect Consultant’s performance of services, including any delay, shall be Consultant’s sole responsibility. Any delay arising out of or resulting from such stop orders shall be considered Consultant caused delay and shall not be compensable by the City. Consultant shall defend, indemnify and hold the City, its officials, officers, employees and agents free and harmless from any claim or liability arising out of stop orders issued by the Department of Industrial Relations against Consultant or any subcontractor.

14. Verification of Employment Eligibility.

By executing this Agreement, Consultant verifies that it fully complies with all requirements and restrictions of state and federal law respecting the employment of undocumented persons, including, but not limited to, the Immigration Reform and Control Act of 1986, as may be amended from time to time, and shall require all subconsultants and sub-subconsultants to comply with the same.

15. Key Personnel.

Consultant has represented to City that certain key personnel will perform and coordinate the Services under this Agreement. Should one or more of such personnel become unavailable, Consultant may substitute other personnel of at least equal competence upon written approval of City. In the event that City and Consultant cannot agree as to the substitution of key personnel, City shall be entitled to terminate this Agreement for cause. All routine administrative communication between the Parties will be between the key personnel and may be made by personal delivery, physical mail delivery, or electronic mail delivery as agreed between the Consultant Representative and City Representative. The key personnel for performance of this Agreement are as follows:
a. The City hereby designates Chris Schultz, Deputy IT Director, or his designee, to act as its representative in all matters pertaining to the administration and performance of this Agreement ("City's Representative"). City's Representative shall have the power to act on behalf of the City for review and approval of all products submitted by Consultant Docusign Envelope ID: 7589A09B-89B5-4B81-8286-59FD89D637C4

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10 but not the authority to enlarge the Scope of Services or change the total compensation due to Consultant under this Agreement. The City Manager shall be authorized to act on City's behalf and to execute all necessary documents which enlarge the Scope of Services or change the Consultant's total compensation subject to the provisions contained in this Agreement.

Consultant shall not accept direction or orders from any person other than the City Manager, City's Representative or his/her designee.
b. Consultant hereby designates Stephen Stukas, CEO, Smart Fiber Networks, or his designee, to act as its representative for the performance of this Agreement ("Consultant's Representative"). Consultant's Representative shall have full authority to represent and act on behalf of the Consultant for all purposes under this Agreement. The Consultant's Representative shall supervise and direct the Services, using his/her best skill and attention, and shall be responsible for all means, methods, techniques, sequences, and procedures and for the satisfactory coordination of all portions of the Services under this Agreement.

16. Laws and Venue.

This Agreement shall be interpreted in accordance with the laws of the State of California.

If any action is brought to interpret or enforce any term of this Agreement, the action shall be brought in a state or federal court situated in the County of Kern, State of California.

17. Early Termination For Convenience By City.
a. City has the right to terminate any portion or all of the work under this Agreement for convenience or without cause by giving sixty (60) calendar days written notice to Consultant. In such event, City shall be immediately given title and possession to all original field notes, drawings and specifications, written reports and other documents produced or developed for that portion of the work completed and/or being abandoned. Further, if all of the work under this Agreement is terminated by City for convenience or without cause, Consultant shall provide the City all of the following:
(i) One hundred (100) percent of the documented capital investments made by the City for all network expansion project areas not yet completed; (ii) Transfer all active Subscriber accounts, systems, and operational data to the City or a designated replacement provider in a commercially reasonable manner and at no cost; (iii) Assist in a 90-day transition plan, beginning after the receipt of the sixty (60) calendar day written notice, to ensure uninterrupted service and minimize Subscriber attrition; (iv) Waive any future claim to unrecovered expansion investments to offset the City’s potential revenue losses;
(v) Transfer all appropriate documentation, permits, and pole access rights over to the City per the procedure described in Exhibit “B”.
b. If City terminates any portion of the work, but not all of the work under this Agreement for convenience or without cause under paragraph 17(a), City shall pay Consultant the reasonable value of services rendered for any portion of the work completed prior to termination. If said termination occurs prior to completion of any task for the Project for which a payment request has not been received, the charge for services performed during such task shall Docusign Envelope ID: 7589A09B-89B5-4B81-8286-59FD89D637C4

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11 be the reasonable value of such services, based on an amount mutually agreed to by City and Consultant of the portion of such task completed but not paid prior to said termination. City shall not be liable for any costs other than the charges or portions thereof which are specified herein.

Consultant shall not be entitled to payment from the City for unperformed services. c. If the City terminates all of the work under this Agreement for convenience or without cause under paragraph 17(a), the City shall compensate Consultant with the following:
(i) The average of the City’s prior twelve (12) months’ revenue share entitlements multiplied by twelve (12);
(ii) One hundred (100) percent of the documented, unrecovered capital investments made by the Consultant for all outstanding network expansion project areas under an approved Consultant-Funded Expansion Adjustment (as outlined in Exhibit “B”). Consultant shall provide the City with an accounting of unrecovered capital expenditures at the time of termination, and the City shall submit payment within ninety (90) calendar days following receipt of such accounting. The calculation of unrecovered expansion investments shall include all documented costs for design, permitting, construction, materials, and related expenses associated with the expansion area.

18. Early Termination For Convenience By Consultant.
a. Consultant has the right to terminate any portion or all of the work under this Agreement for convenience or without cause by giving twelve (12) calendar months written notice to City. If the Consultant terminates this Agreement for convenience or without cause, the Consultant shall compensate and provide the City all of the following:
(i) One hundred (100) percent of documented capital investments made by the City for all network expansion project areas not yet completed; (ii) Transfer all active Subscriber accounts, systems, and operational data to the City or a designated replacement provider in a commercially reasonable manner and at no cost; (iii) Assist in a 90-day transition plan, beginning on a date set by the City after the receipt of the twelve (12) calendar month written notice, to allow the City time to arrange for and procure replacement services and ensure uninterrupted service and minimize Subscriber attrition;
(iv) Waive any future claim to unrecovered expansion investments to offset the City’s potential revenue losses;
(v) Within sixty (60) calendar days from the date of receipt of such written notice, pay a fixed early exit fee equal to the average of the prior twelve (12) months’ total subscriber revenues multiplied by six (6);
(vi) Transfer all appropriate documentation, permits, and pole access rights over to the City per the procedure described in Exhibit “B”.

19. Termination for Cause and Other Remedies For Uncured Breaches.

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12 a. Consultant may terminate its obligation to provide further broadband (ISP) services under this Agreement upon sixty (60) calendar days’ written notice to City only in the event of an uncured substantial failure by City to perform in accordance with the terms of this Agreement through no fault of Consultant.
b. Default for Nonpayment by City.

In the event the City fails to pay any undisputed amount due under this Agreement within sixty (60) calendar days after receipt of a proper invoice, Consultant may, upon written notice to the City, suspend performance of services under this Agreement until all outstanding undisputed amounts have been paid in full. Consultant shall have no liability to the City, nor shall any performance penalties, service level penalties, or breach remedies apply, for any failure to perform services during any period of suspension caused by the City's nonpayment. Consultant’s right to suspend services is in addition to, and not in lieu of, any other remedies available at law or in equity.
c. Default for Nonpayment by Consultant.

In the event of an uncured substantial failure by Consultant to perform in accordance with the terms of this Agreement through no fault of City, the City may, upon notice to Consultant, pursue any or all of the following remedies:
(i) procure or perform the cure and obtain reimbursement of the costs from Consultant;
(ii) terminate the Agreement;
(iii) terminate any portion of the Scope of Services and reduce the Compensation to account for the reduced Scope of Services;
(iv) pursue court ordered remedies in law or equity, including specific performance. d. Cure Period Prior to Termination for Cause.

Notwithstanding anything to the contrary herein, prior to initiating any termination for cause under this Agreement, either Party seeking termination for cause shall provide the other Party with written notice specifying the nature of the alleged material breach. The breaching Party shall have sixty (60) calendar days from the date of receipt of such written notice to cure the alleged breach to the reasonable satisfaction of the non-breaching Party. Termination may not occur unless and until the sixty (60) day cure period has expired without a satisfactory cure. e. Regardless which party terminates the Agreement for cause, the Parties shall at a minimum cooperate to (i) Transfer all active Subscriber accounts, systems, and operational data to the City or a designated replacement provider in a commercially reasonable manner and at no cost; (ii) Assist in a 90-day transition plan, beginning after the receipt of the written termination notice, to ensure uninterrupted service and minimize subscriber attrition; and (iii) transfer all appropriate documentation, permits, and pole access rights over to the City per the procedure described in Exhibit “B”.

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13 20. Ownership of Assets.
a. The City is the legal owner of the Shafter Network and all assets and equipment installed pursuant to this Agreement, except as specifically provided otherwise in Exhibit “B”.
b. Consultant’s Right to Bid on Offered Assets.

In the event the City elects, at any time during the Term of this Agreement or within twelve (12) months following its termination or expiration, to sell, transfer, assign, lease, or otherwise dispose of the Shafter Network or any substantial portion thereof (the "Offered Assets"), the City shall not prohibit the Consultant from offering a formal bid for such Offered Assets.

Notwithstanding the foregoing, the City retains full authority and the sole discretion to define appropriate bidding criteria and evaluation factors consistent with the City’s then-current bidding and procurement policy.

21. Documents.

Except as otherwise provided in “Termination or Abandonment,” above, all original field notes, written reports, Drawings and Specifications and other documents, produced or developed for the Project shall, upon payment in full for the services described in this Agreement, be furnished to and become the property of the City.

22. Organization.

Consultant shall assign Stephen Stukas as Project Manager. The Project Manager shall not be removed from the Project or reassigned without the prior written consent of the City.

23. Limitation of Agreement.

This Agreement is limited to and includes only the work included in the Project described above and within Exhibit “A” and Attachment No. 1.

24. Notice.

Any notice or instrument required to be given or delivered by this Agreement may be given or delivered by depositing the same in any United States Post Office, certified mail, return receipt requested, postage prepaid, addressed to:

CITY:

City of Shafter
336 Pacific Avenue
Shafter, California 93263
Attn: Chris Schultz
CONSULTANT:

Smart Fiber Networks, Inc.
400 Santa Clara St, Suite 100
Vallejo, CA 94590
Attn: Stephen Stukas
and shall be effective upon receipt thereof.

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14 25. Third Party Rights.

Nothing in this Agreement shall be construed to give any rights or benefits to anyone other than the City and the Consultant.

26. Equal Opportunity Employment.

Consultant represents that it is an equal opportunity employer and that it shall not discriminate against any employee or applicant for employment because of race, religion, color, national origin, ancestry, sex, age or other interests protected by the State or Federal Constitutions. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination.

27. Entire Agreement.

This Agreement, with its exhibits, represents the entire understanding of City and Consultant as to those matters contained herein, and supersedes and cancels any prior or contemporaneous oral or written understanding, promises or representations with respect to those matters covered hereunder. Each party acknowledges that no representations, inducements, promises or agreements have been made by any person which are not incorporated herein, and that any other agreements shall be void. This Agreement may not be modified or altered except in writing signed by both Parties hereto. This is an integrated Agreement.

28. Severability.

The unenforceability, invalidity or illegality of any provision(s) of this Agreement shall not render the provisions unenforceable, invalid or illegal.

29. Successors and Assigns.

This Agreement shall be binding upon and shall inure to the benefit of the successors in interest, executors, administrators and assigns of each party to this Agreement. However, Consultant shall not assign or transfer by operation of law or otherwise any or all of its rights, burdens, duties or obligations without the prior written consent of City. Any attempted assignment without such consent shall be invalid and void.

30. Non-Waiver.

None of the provisions of this Agreement shall be considered waived by either party, unless such waiver is specifically specified in writing.

31. Time of Essence.

Time is of the essence for each and every provision of this Agreement.

32. City’s Right to Employ Other Consultants.

City reserves its right to employ other consultants, including engineers and installers, in connection with the Project or other projects related to the expansion of the City’s fiber optic network. In addition, Consultant will honor all previous Network Management Service Docusign Envelope ID: 7589A09B-89B5-4B81-8286-59FD89D637C4

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15 Agreements, Master Service Agreements, and Product Orders obtained by the City prior to this Agreement, until said contracts expire or are terminated.

Consultant enters into this Agreement with an understanding of and support for the development of an Open-Access Network and, as a result, additional Consultants, usually in the form of an internet service provider (ISP), may require access to certain CPE within the Shafter Network to provide broadband services.

33. Prohibited Interests.

Consultant maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Consultant, to solicit or secure this Agreement. Further, Consultant warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Consultant, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability. For the term of this Agreement, no director, official, officer or employee of City, during the term of his or her service with City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.

34. Exhibits and Attachments.

The following exhibits and attachments are attached hereto and incorporated herein by reference:

Exhibit A, entitled “Scope of Services”
Exhibit B, entitled "Compensation”
Exhibit C, entitled “Other Network Expenses”
Attachment No. 1, entitled "Hourly Rates”
Attachment No. 2, entitled "Definitions”
Attachment No. 3, entitled "Performance Metrics and Data Sharing” Attachment No. 4, entitled "Existing Shafter Network Assets” [SIGNATURES ON FOLLOWING PAGE]
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16 SIGNATURE PAGE FOR CONSULTANT AND PROFESSIONAL SERVICES

AGREEMENT BETWEEN THE CITY OF SHAFTER
AND SMART FIBER NETWORKS, INC.

IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above.

CITY OF SHAFTER SMART FIBER NETWORKS, INC.

By: By:

Lance Lippincott
City Manager Its:

Printed Name:

ATTEST:

By:

City Clerk
APPROVED AS TO FORM:

By:

City Attorney
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Stephen Stukas

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17 EXHIBIT A

SCOPE OF SERVICES

1. Network Management Services.

After execution of the Agreement, Consultant will provide network management services and operational support services as necessary to operate the Shafter Network as an ISP for the City of Shafter, including but not limited to:
a. Maintenance of, and all activities associated with, new Layer 1 installations, as well as Layer 2 and Layer 3 network management services.
b. Installation (wiring and construction) necessary to connect units from the connection panel in telecommunications room or demarcation point within the business premises for all future Subscriber connections.
c. Implementation of Network Operations Center (NOC) at agreed upon locations within the Shafter Network, including but not limited to:
(i) Materials, equipment, and labor associated with implementation of connection panel(s) within the necessary telecommunication room(s) throughout the Shafter Network;
(ii) Installation and ongoing maintenance of new handholes, vaults, or any other access points necessary to gain access to new equipment associated with the expansion of the Shafter Network per the Consultant-Funded Expansion Adjustment (as outlined in Exhibit B).
d. Consultant will, directly or through its existing arrangement with Atherton Fiber, LLC, at their expense, acquire a pole permit from the pole owner and acquire an agreement with the owner for pole use.
e. Consultant will ensure all new fiber optic cable installations be ITU-T G.652.D or better and all splices be of the fusion type. Splices shall have an optical attenuation of no more than 0.1 dB at both 1550 nm and 1310 nm.
f. Consultant shall be responsible for procuring, managing, operating, monitoring, and maintaining the Core Services on behalf of the City, including the selection of providers, bandwidth tiers, interconnection points, service upgrades, technical configuration, and ongoing vendor coordination. Final service provider contracts shall be subject to the City's prior written approval.
g. Consultant shall ensure that Core Services meet industry standards for reliability, redundancy (as available), and performance appropriate for the City's service delivery needs.

Consultant shall monitor service levels and manage repair, maintenance, and escalation processes with third-party carriers on behalf of the City.

2. Internet Service Provider for Broadband Services to Subscribers.

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18 Consultant will perform the services listed below as part of their responsibility as an internet service provider (ISP). If one or more of the services listed below need to be performed in phases or discrete increments, Consultant shall not proceed from one phase or increment to the next without written authorization from the City’s Representative. Consultant will complete all services for the duration of the contract. Performance metrics are listed in Attachment No. 3. a. Installation of fiber-to-the-home (FTTH) network equipment and infrastructure associated with connecting new Subscribers from the demarcation point to the Subscriber’s connection panel;
b. Installation of fiber-to-the-premises (FTTP) network equipment and infrastructure associated with connecting new business Subscribers from the demarcation point to the Subscriber’s connection panel;
c. Delivery of Broadband Access Services to Subscribers.

Subscriber Support Services.
(i) Provide a mechanism by website for new and existing Subscribers to view and make changes to their broadband services plan or account; (ii) Provide a mechanism by telephone for new and existing Subscribers to view and make changes to their broadband service plan or account; (iii) Provide a mechanism for existing Subscribers to report network outages, including a toll-free phone number for customer support. (iv) Clearly advertise the monthly pricing associated with broadband access on the Subscriber website.
(v) Provide Subscribers with monthly bills, collect payments, and respond to billing inquiries.
d. Provide the City with the following information on a monthly basis as it pertains to their function within the Agreement as an ISP:
(i) A list of new Subscribers activated by Syber Fiber during the previous thirty (30) calendar days, including physical addresses and/or business names. Consultant will not disclose any Subscriber’s Personally Identifiable Information (PII); (ii) A list of terminated or deactivated Subscriber accounts by Syber Fiber during the previous thirty (30) calendar days, including physical addresses and/or business names. Consultant will not disclose any Subscriber’s Personally Identifiable Information (PII); (iii) A net Subscriber count, as of the last day of each month cumulatively; (iv) A breakdown of all incoming monthly revenues from all broadband internet service Subscribers as defined in Exhibit B of this Agreement, from the Consultant, DBA Syber Fiber, or other outside contracted Service Providers. Monthly revenues are subject to the 60/40 revenue sharing provisions between the City and the Consultant. (v) Any and all other information that the City may reasonably require. This information may include information on Subscriber counts and revenues generated by Consultant Docusign Envelope ID: 7589A09B-89B5-4B81-8286-59FD89D637C4

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19 from ancillary services not subject to the revenue sharing provisions of this Agreement. This information may only be used by the City for statistical purposes or for reporting requirements as necessary by law. Consultant will make every effort to not disclose Subscriber’s Personally Identifiable Information (PII) without proper authority. e. Installation, deployment, and ongoing maintenance of wireless access points, for Wi-Fi internet use by the City or the public, at no cost to the City or the general public. Once deployed, these public Wi-Fi networks will be maintained and operated by the Consultant as part of its ongoing network management services, ensuring consistent performance, security, and accessibility. The City will become a Subscriber for all agreed upon wireless access points, and be responsible for paying the associated monthly fee for broadband services to Consultant.

Wireless access points will be installed within or around, but not limited to, the following locations:
(i) Public (City) parks: Mannel; Downtown Square; Stringham; Kirschenmann; Rodriguez; Veterans; Community; Farm; Flight; and the Shafter Skate Park facility. (ii) City buildings: City Hall; City Hall Annex; City Corporation Yard; Shafter Animal Shelter; Shafter Police Department; Shafter Library & Learning Center. (iii) City parking lots: Shafter Library & Learning Center.

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20 EXHIBIT B

COMPENSATION

1. Compensation to Consultant for Scope of Services Rendered.

A. Share of Revenue Generated from Subscribers.
(i) Revenue Share for Broadband Internet Services.

City agrees to a shared revenue percentage from all monthly recurring broadband internet access service charges collected by Consultant. The revenue share split will be in a sixty (60) / forty (40) manner, with Consultant collecting all revenues, retaining sixty (60) percent as compensation, and paying the City forty (40) percent of said monthly revenues collected by the 15th day of the following month.

The Consultant reserves the right, with prior written notice to City, to deduct all monthly broadband fees billed to the City as a Subscriber from the City’s monthly revenue share entitlement for that month. These broadband fees charged to the City as a Subscriber include FTTP broadband internet service to all City-owned buildings, and broadband services associated with the wireless access points provided to the public with City parks, buildings, or parking lots. (ii) Consultant-Funded Expansion Adjustment.

Subject to the City’s prior written approval, in the event that Consultant fully funds the capital expenditures required to expand broadband infrastructure into a new service area not previously covered under this Agreement, the revenue share for Subscriber services in the new service area only shall adjust to eighty percent (80%) Consultant and twenty percent (20%) City until Consultant has recovered its total documented capital investment (the "Payback Period").

Upon full recovery of the investment, as mutually certified by the Parties, the revenue share for that expansion area shall revert to the standard sixty percent (60%) Consultant and forty percent (40%) City split for the remainder of the Agreement term. (iii) Alternative Technology Deployment Adjustment.

Subject to the City’s prior written approval, if Consultant elects to utilize alternative lastmile technologies, including but not limited to fixed wireless, millimeter wave, or CBRS spectrum, and bears the associated deployment costs, the revenue share for those connections shall similarly adjust to eighty percent (80%) Consultant and twenty percent (20%) City until the Consultant recovers the documented capital expense. Upon recovery, the revenue share shall revert to the standard sixty percent (60%) Consultant and forty percent (40%) City for such connections.

B. Service Fees and No-Cost Access to Property.
(i) Compensation to Consultant for Operating Services.
a. City agrees to pay Consultant a total of $495,000 ($99,000 per year) for the initial term of the Agreement for all services related to the design, construction, maintenance, Docusign Envelope ID: 7589A09B-89B5-4B81-8286-59FD89D637C4

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21 operations, and commercialization for low-level engineering work performed on new and existing Shafter Network.
b. City agrees to provide the Consultant, at no cost, with access to City-controlled real property sufficient for use as a secure yard, warehouse, and temporary field office for the duration of the initial term of this Agreement. This space, located at 720 Commerce Way, Shafter, CA 93263, shall be suitable for storage of materials, equipment staging, and day-to-day ISP operational needs, and may include the installation of modular office or utility structures by Consultant, subject to mutual agreement on location and site coordination.

2. Expense Reimbursement to Consultant.

A. Reimbursable Expenses – General.

Reimbursable expenses shall be limited to actual reasonable expenditures of Consultant for expenses that are necessary for the proper completion of the Services and shall only be payable if specifically authorized in advance by City, either in writing or verbally, if warranted.

B. Authorized Subscriber Installation Costs.

Consultant may bill the City for all authorized reimbursable expenses in connection with the installation of broadband internet access service at a Subscriber location, for a total not to exceed Five Hundred dollars ($500.00) per customer location unless a higher amount is authorized in writing by City on a case-by-case basis.

C. Pole Attachment Fees.

City agrees to pay Consultant for pole attachment fees on a per-pole basis, as stated below:
(i) An initial one-time payment of $198 per pole will be assessed and assigned the calendar year designation of “year 1” at the time a permit is established for use of that pole for the Shafter Network.
(ii) An additional $19 lease fee and $5 administrative/insurance fee, for a total of $24 per pole that maintains a valid permit, will be charged by the Consultant and paid by the City on an annual basis beginning in calendar “year 2” of that pole being used within the Shafter Network. (iii) Pole fees stated above will not change, unless the pole lease fees are increased by the pole owner (lessor) and those increases are presented to the City and approved in writing by the City representative thirty (30) days ahead of invoicing. (iv) It is understood by the Parties that for regulatory compliance purposes, the Consultant shall retain legal ownership of all equipment installed on the poles. Notwithstanding such ownership, Consultant shall grant to the City exclusive operational use by way of an Indefeasible Right of Use (IRU) contract and beneficial rights to the installed equipment pursuant to the terms of this Agreement and any extensions thereof. The Consultant may not transfer, assign, or sell any ownership interest in the installed equipment except to the City or to another party designated in writing by the City.

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22 (v) It is understood by the Parties that the Consultant, as a CLEC, will be responsible for transferring all appropriate documentation, permits, and pole access rights over to the City at the end of this Agreement or any extension of this Agreement herein termination of this agreement. The Parties acknowledge that the transfer process may require up to one (1) year to complete. During the transfer period, the Consultant shall not sell, transfer, or otherwise encumber the installed equipment except as directed by the City. The City shall remain responsible for all applicable fees and any costs associated with the transfer of ownership and permits.

3. Compensation for Additional Services.

A. Additional Services.

Consultant’s compensation for Additional Services shall be based on the total number of hours spent on Additional Services multiplied by the employees' appropriate billable hourly rate as established in Attachment 1 of this Agreement. The City, at its option, may negotiate a fixed fee for some or all Additional Services as the need arises. Where a fixed fee for Additional Services is established by mutual Agreement between City and Consultant, compensation to Consultant shall not exceed the fixed fee amount.

B. Reimbursable Expenses.

4. Payments to Consultant.
(i) Payments to Consultant shall be made within a reasonable time after receipt of Consultant’s invoice, said payments to be made in proportion to services performed. Consultant may request payment on a term other than twice a month, with written approval from the City representative ahead of the requested timeframe. Consultant shall be responsible for the cost of supplying all documentation necessary to verify the invoice amounts to the satisfaction of City. (ii) Consultant agrees to invoice the City for services and expenses associated with the terms of this Agreement on a bimonthly (twice a month) basis. Consultant will inform City regarding out-of-scope work being performed by Consultant (if any) and will not include out-ofscope work in any invoice amount to the City. Consultant will be sure to separately invoice any work completed within the project area related to the City’s Federal Funding Account Last Mile grant or any other grant awards herein. All invoices submitted by Consultant shall contain the following information:

1. Description of services billed under this invoice

2. Date of Invoice Issuance

3. Sequential Invoice Number

4. City’s Purchase Order Number (if issued)

5. Taxpayer Identification Number (TIN)

6. Amount Invoiced (Itemize all Reimbursable Expenses)

7. Total Billed to Date
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23 8. Detailed progress report that indicates the amount of budget spent on each task.
(iii) Items shall be separated into Services and Reimbursable Expenses. Billings that do not conform to the format outlined above shall be returned to Consultant for correction. City shall not be responsible for delays in payment to Consultant resulting from Consultant’s failure to comply with the invoice format described above.
(iv) Request for payment shall be mailed to the address below or can be electronically submitted by emailing the following two email addresses – [email protected]; [email protected].

Chris Schultz
Deputy IT Director
City of Shafter
720 Commerce Way
Shafter, CA 93263

4. Accounting Records of Consultant.

Consultant shall maintain for three (3) years after completion of all services hereunder, all records under this Agreement, including, but not limited to, records of Consultant’s direct salary costs for all Services and Additional Services performed under this Agreement and records of Consultant’s Reimbursable Expenses, in accordance with generally accepted accounting practices. Consultant shall keep such records available for audit, inspection and copying by representatives of the City’s Finance Department or other government agencies during regular business hours upon twentyfour (24) hours’ notice.

The obligations of Consultant under this section shall survive this Agreement.

5. Taxes.

Consultant shall pay, when and as due, any and all taxes incurred as a result of Consultant’s compensation hereunder, including estimated taxes, and shall provide City with proof of such payments upon request.

6. Taxpayer Identification Number.

Consultant shall provide City with Consultant’s complete Request for Taxpayer Identification Number and Certification, Form W-9, as issued by the Internal Revenue Service, and any other State or local tax identification number requested by City.

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24 EXHIBIT C

OTHER NETWORK EXPENSES

1. Internet Protocol Licenses.

City agrees to purchase the required and necessary amount of Internet Protocol (IP) addresses in accordance with the low-level design and infrastructure needs in order to successfully implement all phases of the network expansion process.

2. Core Network Access and Dedicated Transport Services. a. The City shall be responsible for funding and maintaining one or more Dedicated Internet Access (DIA) connections, or substantially equivalent high-capacity wave transport services (collectively, "Core Services") as required to provide core Internet connectivity for the Shafter Network.
b. The City shall directly enter contracts for Core Services with carriers or, at its option, authorize Consultant to procure Core Services and invoice the City for all actual costs incurred, including but not limited to installation fees, monthly recurring charges, taxes, regulatory fees, and carrier-imposed surcharges, without markup unless otherwise agreed upon in writing. c. In the event the City fails to fund, maintain, or timely renew Core Services necessary for the operation of the Shafter Network, Consultant shall be excused from any performance metrics, service level obligations, or penalties arising from such deficiency to the extent it impairs Consultant’s ability to deliver Services. Consultant shall not be liable for any loss, interruption, or failure to meet performance standards resulting directly from a lapse, underperformance, or failure of the Core Services not attributable to Consultant’s actions.

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25 ATTACHMENT NO. 1

HOURLY RATES
Any additional services requested by the city outside of customer interactions will be billed at Consultant’s regular rates, outlined below.

Standard Smart Fiber Networks Rates
Role Rates Rate Type Base Rate
Project Management
(All Smart Fiber Networks Team) Hourly $250.00
Project Coordinator Hourly $175.00
Engineering/ Design Hourly $250.00
2 Person OSP Field Crew Hourly $100.00
2 Person Wireless Field Crew Hourly $200.00
After Hours Troubleshooting Hourly $175.00
Standard Splicer Hourly $70.00
Standard ISP Technician Hourly $50.00
Network Technician Hourly $60.00
Prevailing Wage - Splicer Hourly $90.00
Prevailing Wage - Technician Hourly $62.00
Sales Weekly $640.00
Rate Adjustments
The hourly rates listed herein are subject to an annual review and adjustment upon mutual written agreement of the Parties. Any such adjustment shall be made in good faith and may consider inflation, labor cost changes, market conditions, or changes in the scope of services.

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26 ATTACHMENT NO. 2

DEFINITIONS
“Access Agreement” means the written agreement between an owner of Premises and the City pertaining to the connection of the Premises to the Shafter Network, and granting a right of access and occupation to the City and/or Consultant sufficient to enable the installation and maintenance of Shafter Network and/or Consultant facilities on the Premises. “Agreement” means this Agreement, any and all Exhibits and Attachments thereto, and any Addenda or written amendments to which the Parties may agree from time to time. “Assets” means the dark fiber strands and Outside Plant associated with the Shafter Network and managed by the Consultant under this Agreement, as specified in Exhibit A. “Authorizations” means the permissions a Party must have to perform its obligations under this Agreement, which may include franchises; licenses; permits; zoning approvals; variances; exemptions; grants of authority to use public rights of way or facilities; agreements to make attachments to poles, ducts, conduits, towers, buildings, rooftops, manholes, and the like; and any other approval of a governmental authority or third persons with respect to (i) the construction, installation, repair, maintenance, operation or use of tangible or intangible property, as the case may be, or (ii) any requirement by a governmental authority for the engagement in a business or enterprise.
“Authorization Fees” means all permit, right-of-way, easement, pole attachment, franchise, encroachment, or license fee, charge or assessment of any kind relating to a Party’s execution of its obligations under this Agreement, whether imposed by a governmental authority or a private entity.
“Core Services” means services related to one or more Dedicated Internet Access (DIA) connections, or substantially equivalent high-capacity wave transport services, as required to provide core internet connectivity for the Shafter Network. “Customer Premises Equipment” (“CPE”) means terminal and associated equipment and inside wiring located at a Premises that is necessary for the receipt of Services, and which is provided and installed by Consultant.
“Dark Fiber” means fiber optic cable strands without electronic and/or optronic equipment and which is not "lit" or activated.
“Effective Date” means the date upon which this Agreement has been executed by the Parties and is approved by the City, per the approval of the City of Shafter and a vote of approval of the Council of the City of Shafter.
“FTTH” means fiber to the home. Represents infrastructure and service connections specifically associated with bringing broadband service to a homesite or private residence. “FTTP” means fiber to the premises. Represents infrastructure and service connections associated with bringing broadband service to any location, including a place of business, worship, etc.

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27 “Maintenance” means work that must be performed upon or to the Shafter Network, including Assets, to ensure the continuity of an acceptable signal transmitted through the fibers (in conformance with the manufacturer’s specifications), and capable of enabling the Consultant and other ISP’s operating upon the Shafter Network, to meet the Performance Metrics, or to ensure the safety and reliability of the Assets.
“Network Operator” means Consultant’s role in (i) configuring and activating a community fiber network utilizing the Shafter Network, and (ii) providing data/IP transport services to unrelated Service Providers on a nondiscriminatory basis.
“Optical Network Terminal” / “ONT” means a device that performs interface functions, such as code conversion, protocol conversion, and buffering, required for communications to and from an optical fiber network.
“Outside Plant” means equipment and structure owned by the City that is used to house or support Shafter Network fiber optic cable, to which Consultant is granted a nonexclusive right to use under this Agreement.
“Open-Access Network” means a specialized and focused fiber network business model, in which the network infrastructure provider limits its activities to a fixed set of value layers in order to avoid conflicts of interest. The network infrastructure provider creates an open market and a platform for internet service providers (ISPs) to add value. The Open Access provider remains neutral and independent and offers standard and transparent pricing to ISPs on its network. It does not compete with the ISPs
“Premise” means a residence, commercial building, multi-dwelling unit (MDU), or buildable lot that can be feasibly and reasonably served by the Shafter Network. In cases where a single structure may require multiple connections to serve separate customers within the structure, each connection to an Optical Network Terminal (ONT) will count as an individual Premise. “Route” means the physical path traversed by the fiber strands that are specified as Assets in Exhibit A, as set forth in applicable maps and related documents that are made a part of this Agreement.
“Service” means any retail communications service offered and provided using the Shafter Network and the Assets, whether by the Consultant or another Service Provider, including but not limited to broadband Internet access service, and Voice Service. “Service Provider” means a provider of retail Services, to which the Consultant provides data transport services using the network infrastructure owned by the City of Shafter. “Shafter Network” means the new and existing network infrastructure owned by the City necessary for delivering any broadband internet access service by the Service Provider, including those associated with the City’s forthcoming branded public access website. “Subscriber” means a business or residential customer of retail Services provided by a Service Provider. The term “customer” may be used interchangeably within this Agreement.

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28 “Voice Service” means interconnected VoIP service, as such term is interpreted by the Federal Communications Commission, or its substantial equivalent.

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29 ATTACHMENT NO. 3

PERFORMANCE METRICS AND DATA SHARING

1. Performance metrics for Consultant are outlined as follows:
a. Consultant support performance: Consultant will strive to answer all inbound customer phone calls within 90 seconds, and all inbound emails within 24 hours. b. Consultant maintains that all fiber shall be ITU-T G.652.D or better. All splices shall be of the fusion type; and splices shall have an optical attenuation of no more than 0.1 dB at both 1550 nm and 1310 nm.
c. Consultant shall perform optical performance tests:
(i) for all City fiber installed under this agreement with the City; and (ii) to verify that fiber is correctly spliced and installed when the City requests its activation.

Upon construction, testing shall be performed over continuous stretches of the spliced fiber to validate the optical performance of the length of all the City fiber strands. Testing shall be unidirectional OTDR testing. Upon the City requesting use of City fiber, testing shall be performed to verify that fiber splicing has occurred according to fiber routing plans. This testing will consist of bi-directional OTDR testing, as well as direct optical attenuation and continuity testing using a calibrated optical source and power meter. Consultant shall provide a test result template for City review and approval before testing begins. Consultant shall provide the City with electronic documentation of all test results.
d. Testing shall be deemed successfully completed if:
(i) maximum fiber losses meet manufacturer specifications, with an allowance for splices and connectors;
(ii) individual splice losses do not exceed 0.1 dB; and (iii) maximum mated connector losses do not exceed manufacturer specifications. e. Testing will be performed by Consultant personnel and may be observed by the City or its designated representative. The City may request and/or perform additional testing to verify results prior to accepting test data.
f. An OTDR shall be used to measure and document splice losses and connector losses.
(i) To correctly identify abnormalities at a short range, a 100-meter or longer launch cable shall be used between the OTDR and the fiber under test. (ii) Each fiber will be identified, and the results of the test for each fiber will be recorded as indicated below.
(iii) The test will be repeated for each of the fibers linking a particular site. All tests will be made at 1310 nm and 1550 nm.
g. All data collected at each location during the tests shall be recorded at the time of the tests using electronic means. Optical power meter measurements shall be made when the City is activating City fiber strands, at the same time as the OTDR tests, to determine overall fiber loss and to ensure that fibers have appropriate end-to-end continuity (fibers not crossed). Power Docusign Envelope ID: 7589A09B-89B5-4B81-8286-59FD89D637C4

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30 meter testing shall be performed at both 1310 nm and 1550 nm and Consultant shall report the relative loss of each fiber strand.
h. Consultant shall provide the City as-built documentation for all communications infrastructure once the network design is completed and before final acceptance by the City. (i) Consultant shall provide georeferenced map files, such as GIS shapefiles, that indicate fiber routing, splice enclosures, fiber counts, and designation of aerial or underground construction.
(ii) Engineering as-built drawings shall be provided showing building entrances and inside wiring at each City facility.
(iii) Consultant shall provide as-built documentation of any changes in the network during the term of the agreement. Upon request from the City, Google KMZ files may be provided by Consultant for all as-built fiber routes.

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31 ATTACHMENT NO. 4

EXISTING SHAFTER NETWORK ASSETS
The Assets in which Consultant shall have a non-exclusive right of use and obligation to maintain and operate under this Agreement are partially described in the table below. This attachment may be referenced and amended by the Parties from time to time in writing, with signatures by both Parties, in order to include or remove assets or colocation spaces that are vital to network operations. Examples of such Assets may include, but are not limited to: network facilities, rental/lease space for office use, additional fiber nodes or access points, existing City structures not yet associated with existing network infrastructure.

As of the effective date of this Agreement, the City currently owns, operates, and maintains approximately 40 miles of underground fiber optic cable, conduit, enclosures, and structures associated with the Shafter Network. The City’s conduit network currently stretches approximately 510,000 linear feet and consists of primarily 2-inch or 4-inch conduit sizing.

Conduit depth standard within the existing Shafter Network is 36 inches below grade, with most conduits installed between 32- and 40-inch depths at time of installation. A map of the current Shafter Network backbone path and the four distribution hub sites associated is provided below.

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32 As of the Effective Date, Assets include the following existing municipal infrastructure comprising the Shafter Network:
● Any City owned conduit, cable, vaults, enclosures, cabinets, and physical structures within the Shafter Network that are necessary for the expansion of the Shafter Network as it relates to the terms of this Agreement.
● Access to the following City owned facilities within the Shafter Network that are necessary for the expansion of the Shafter Network as it relates to the terms of this Agreement:

Location Name Address Equipment
City Hall 336 Pacific Ave Network equipment room
City Hall Annex 337 State Ave Network equipment room
Police Department 201 Central Valley Hwy Network equipment room Public Works Corp Yard 720 Commerce Way All network assets owned by City Shafter Library & Learning Center 236 James St Network equipment room Veterans Park Fiber HUB 500 W Los Angeles Ave Network equipment room Fanucchi Tower Fiber HUB 4451 Fanucchi Way All network assets owned by City Lerdo Central Office 5821 E Lerdo Hwy All network assets owned by City Animal Control Facility 18849 S Shafter Ave Network equipment room Modified Community Correctional
Facility (MCCF) – not in use 1150 E Ash Ave Network equipment room Gossamer Grove Fiber Node 3851 Gossamer Grove Blvd All network assets owned by City Community Park utility closet 9210 Cobble Creek Dr Network equipment room Docusign Envelope ID: 7589A09B-89B5-4B81-8286-59FD89D637C4

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CONSENT CALENDAR

CITY OF SHAFTER

CITY COUNCIL REPORT
MEETING DATE: August 4, 2026
DEPARTMENT: Marcos Torres, Deputy Public Works Director SUBJECT: 96" DECK MOWER PURCHASE VIA OMNIA COOPERATIVE

RECOMMENDATION
Council find the action is not a “project” as defined by Section 15378(b)(4) of the CEQA Guidelines; accept the proposal submitted by California Turf Equipment & Supply, Inc. for the purchase of one (1) Exmark 96-inch Lazer Diesel commercial mower though the OMNIA Partners Cooperative Purchasing Program in the total amount of $49,076.53; and authorize the Public Works Director to execute all necessary purchase documents.

BACKGROUND
The Public Works Department is responsible for maintaining parks, sports fields, landscaped areas, and public facilities throughout the City. As the City continues to grow and additional park acreage is added, the demand for efficient and reliable mowing operations has increased.

The City currently utilizes a commercial deck mower to perform routine mowing operations. While that equipment has served the department well, a second large-area mower is needed to improve productivity, reduce mowing times, and provide operational redundancy during scheduled maintenance or unexpected equipment downtime. The proposed mower features a 96-inch cutting deck and a commercialgrade diesel engine specifically designed to maintain large turf areas efficiently while producing a high-quality cut.

Staff obtained pricing through the OMNIA Partners Cooperative Purchase Program (Contract No. 20469), which provides competitively solicited pricing available to participating public agencies. Purchasing through this cooperative is consistent with Section 2.68.030(19) of the City's Purchasing Ordinance No. 768, which authorizes cooperative purchasing when determined to be in the best interest of the City.

FISCAL IMPACT
The total purchase cost for the Exmark 96-inch Lazer Diesel commercial mower is $49,076.53, including applicable sales tax. Staff recommends funding the purchase through the Parks Division equipment budget. Current Fiscal Year 2026-2027 included a budget item of $50,000 for the purchase of a new mower. No additional budget action is required.

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96" DECK MOWER PURCHASE VIA OMNIA COOPERATIVE
- 2 -

CEQA ANALYSIS
The action is not a “project” as defined by Section 15378(b)(4) of the CEQA Guidelines because it is the purchase of a 96-inch deck mower. The action constitutes a governmental fiscal activity that does not commit funds to a specific project with the potential to result in a significant environmental impact.

APPROVED BY THE CITY ATTORNEY
No

ATTACHMENTS

1. 96" Deck Mower Quote

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1 CP: RONALD

Q U O T A T I O N
DATE:

CUSTOMER #:

P.O.#:
11204
EXM 96 - OMNIA
TERMS: Net 30
California Turf Equipment & Supply Inc. 7/9/2026
956 N J STREET
TULARE, CA 93274 USA
Phone #: (559)688-2505
Fax #: (559)688-0861
PHONE #:

ALT. #:
(661)746-5094
LOCATION: 1
STATUS: Active
PAGE:

ORDER #: 401233
SALES TYPE: Quote
CELL #: (661)319-5768 LOUIE
CONTACT: JEREMY BARELA

CITY OF SHAFTER
720 COMMERCE WAY
SHAFTER, CA 93263 US

CITY OF SHAFTER
720 COMMERCE WAY
SHAFTER, CA 93263 US
BILL TO 11204 SHIP TO

MFR PRODUCT NUMBER DESCRIPTION QTY PRICE NET TOTAL
EXM LZS88CDYM96RW0 $57,199.00 $45,759.00 $45,759.00 96''LAZER DIESEL 37HP YANMAR 3TNV88C 1 QUOTE VALID FOR 30 DAYS
**** EXMARK OMNIA CONTRACT NUMBER 20469
This quote is valid for 30 days. Please contact your sales representative to confirm availability prior to acceptance. Prices are subject to change after the validity period.

ORDER TOTAL: $49,076.53
TAX: $3,317.53
SUBTOTAL: $45,759.00
Authorized By:

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CONSENT CALENDAR

CITY OF SHAFTER

CITY COUNCIL REPORT
MEETING DATE: August 4, 2026
DEPARTMENT: Alex Gonzalez, Public Works Director
SUBJECT: ACCEPTANCE OF DEDICATION OF EASEMENT FOR STREET

AND PUBLIC UTILITY PURPOSES FOR EXPRESS AVENUE AND

RESNICK WAY

RECOMMENDATION
Council find the action is not a “project” as defined by Section 15378(b)(5) of the CEQA Guidelines; accept one (1) dedication of easement for street and public utility purposes for Express Avenue and Resnick Way from Wonderful Real Estate Development LLC and Lot 29 Property LLC; and authorize the City Engineer to execute and record the easement document and any necessary and related items.

BACKGROUND
Wonderful Real Estate Development LLC is developing industrial property within the City of Shafter. As part of the development, the property owners have granted the City a perpetual easement for street and public utility purposes to accommodate the construction, operation, maintenance, repair, reconstruction, alteration, and removal of public street improvements, utilities, landscaping, walls, appurtenant structures, and related public infrastructure.

The easement encompasses approximately 23.93 acres and provides right-of-way for the Express Avenue and Resnick Way extensions. The dedication includes property owned by Wonderful Real Estate Development LLC and Lot 29 Property LLC, as depicted in Exhibits "A" and "B" of the easement document.

Acceptance of the easement will allow the City to obtain the necessary property rights for future public street and utility improvements consistent with the approved development.

FISCAL IMPACT
The easement dedication is being granted to the City at no cost. Future City budgets will include costs associated with operating and maintaining the public improvements constructed within the easement area. No budget action is necessary at this time.

CEQA ANALYSIS
The action is not a “project” as defined by Section 15378(b)(5) of the CEQA Guidelines because it is the acceptance of dedication of an easement for street and public utility

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ACCEPTANCE OF DEDICATION OF EASEMENT FOR STREET AND PUBLIC UTILITY

PURPOSES FOR EXPRESS AVENUE AND RESNICK WAY
- 2 -
purposes, which is an organizational or administrative activity that will not result in direct or indirect physical changes to the environment

APPROVED BY THE CITY ATTORNEY
No

ATTACHMENTS

1. Express Ave & Resnick Way Easement Documents

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PUBLIC HEARINGS

CITY OF SHAFTER

CITY COUNCIL REPORT
MEETING DATE: August 4, 2026
DEPARTMENT: Alan Cazares, Associate Planner
SUBJECT: TENTATIVE TRACT MAP NO. 7498

RECOMMENDATION
Council find the action has already complied with the California Environmental Quality Act; conduct a public hearing; and adopt Resolution 3106, a Resolution of the City Council of the City of Shafter finding that no further environmental review is required pursuant to CEQA Guidelines Section 15162 because the project is within the scope of the previously adopted Mitigated Negative Declaration (SCH No. 2026020740), and none of the conditions requiring a subsequent or supplemental environmental document have occurred, and approving Tentative Tract Map No. 7498, as depicted in Exhibit “A” with Conditions of Approval as shown in Exhibit “B”, to allow the residential subdivision of an approximate 40-acre site into 177 lots located to the southeast and southwest of the intersection of E Los Angeles Avenue and S Mannel Avenue (APNs 028-290-03 and 028-290-04).

BACKGROUND
The property owner, V Lions Holdings, LLC. is requesting approval of a tentative tract map to subdivide approximately 40 gross acres into 176 single-family residential lots and 1 sump lot. The proposed subdivision includes residential lots ranging in size from 6,800 square feet to 11,000 square feet. The tract is proposed in 4 phases. Phase 1 will include 46 single-family residences and the sump. Phase 2 will have 41 SFR lots, Phase 3 will have 50 SFR lots and Phase 4 will have the final 39 SFR lots. The current zoning is Low Density Residential (R-1), and the General Plan land use designation is Low Density Residential (LDR). The elementary and Jr High school district is Richland Union School District, and Kern County High School District.

Both S Mannel Avenue and Tasso Street will be developed as local streets providing entry to the tract off of E Los Angeles Ave. A temporary barricade will be set up at the south end of the tract at the end of Rue Avenue until future development is proposed south of this site. The drainage basin will be located at the southwest corner of the tract and will be dedicated to the City of Shafter at final map. The Developer proposes to build a 6-foot-high decorative CMU block wall around the tract perimeter.

The proposed tentative tract map has been designed to be consistent with both the lot sizes and the design elements required by the Shafter Zoning Ordinance. To the best of staff’s combined knowledge, the proposed project satisfies the applicable ordinances

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TENTATIVE TRACT MAP NO. 7498
- 2 -
and regulations at this stage of the development process. Moreover, staff have compiled a list of conditions of approval that reflect additional necessary requirements and rules that the project proponent will have to satisfy and comply with in the ongoing development of this property.

GENERAL PLAN CONSISTENCY
The proposed residential project is consistent with the adopted Shafter Zoning Ordinance, and the lot size, configuration, and density meet the requirements for the R1 zone. The internal circulation plan, street configuration, and proposed improvements are all consistent with the City’s requirements.

PLANNING COMMISSION REVIEW AND RECOMMENDATION
The Planning Commission considered the tentative tract map on July 14, 2026. The Planning Commission unanimously approved and adopted Resolution No. 26-486, recommending the City Council approve the tentative tract map (Tentative Tract No. 7498) subject to the recommended conditions of approval.

FINDINGS
The Shafter Subdivision Ordinance (Title 16) and the California Subdivision Map Act authorize the Shafter City Council to approve (or deny) a map only upon making certain findings supported by the evidence in the record of proceedings. These findings include whether:

1. The proposed map is consistent with the General Plan and any applicable specific plan approved by the City Council;

2. The design and/or improvements of the proposed subdivision are consistent with the General Plan and any applicable specific plan;

3. The site is physically suitable for the proposed type and density of development;

4. The design of the subdivision or the proposed improvements are likely to cause substantial environmental damage or substantially and avoidably injure wildlife or their habitat;

5. The design of the subdivision or the type of improvements is likely to cause serious public health problems;

6. The design of the subdivision or the type of improvements proposed will conflict with easements, acquired by the public at large, for access through or use of property within the proposed subdivision.

7. The proposed subdivision is consistent with California Government Code Section 66412.3 in that it balances the housing needs of the region against the public service needs of the City’s residents and available fiscal and environmental resources.

8. The design of the subdivision provides, to the extent feasible, for future passive or natural heating or cooling opportunities in the subdivision.

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TENTATIVE TRACT MAP NO. 7498
- 3 -

9. The discharge of waste from the proposed subdivision into the existing sewer system will not result in a violation of existing requirements prescribed by the Regional Water Quality Control Board.

In addition, since this is a residential subdivision project, the California Housing Accountability Act applies, and the project cannot be denied unless the City Council determines, by preponderance of the evidence, that the project would have a specific, adverse impact upon the public health or safety unless the project is disapproved or approved upon the condition that the project be developed at a lower density.

A “specific, adverse impact” means a significant, quantifiable, direct, and unavoidable impact, based on objective, identified written public health or safety standards, policies, or conditions as they existed on the date the application was deemed complete.

Pursuant to Government Code section 65589.5 (a)(3) it is the intent of the Legislature that the conditions that would have a specific, adverse impact upon the public health and safety arise infrequently. For the reasons set forth in this report, we note that the findings for approval of this subdivision can be made. Moreover, the City has no applicable objective, identified written public health or safety standards that can be applied to deny approval of the proposed subdivision.

ALTERNATIVES

1. Disapprove the tentative map. Government Code §66474 of the Subdivision Map Act specifies that the Council may only deny the tentative map if it can be found that the map design or improvements are inconsistent with the General Plan, the type or density of development are physically unsuitable for the site, it is likely that the development will cause environmental damage, it is likely that the development will cause serious public health problems, or that the design will conflict with public easements. None of the required findings for denial apply to the proposed map. Staff do not recommend this option.

2. Delay approval of the tentative map. The City Council is required by Government Code §66452.2 to take action on the tentative map within 30 days of the filing of the recommendation from the Planning Commission. The Planning Commission recommended approval of the tentative map on July 14, 2026, so final action by the Council is needed before August 13, 2026. Since there are no other City Council meetings scheduled before the aforementioned date, Council should not delay the map any further. Staff do not recommend this option.

3. Take no action on the tentative map. If the City Council takes no action on the map prior to August 13, 2026, Government Code §66452.4 stipulates that the map is automatically deemed approved. Staff do not recommend this option.

FISCAL IMPACT
There is no fiscal impact directly resulting from the approval of the tentative tract map.

Indirectly, the approval may expedite the development of the residential project.

Development of residential projects typically result in increased one-time building

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TENTATIVE TRACT MAP NO. 7498
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related revenues and annual property tax revenues. These revenues are generally offset by the increased ongoing costs of providing services to the newly developed properties.

CEQA ANALYSIS
The project’s environmental impacts were previously evaluated under a Mitigated Negative Declaration (MND) that was adopted for General Plan Amendment No. 25-41 and Zone Change No. 25-74 (SCH No. 2026020740). Staff have determined that the tract map is within the scope of the original MND, and the MND adequately describes the activity of the residential development proposed in Tentative Tract No. 7498.

Therefore, no further CEQA action is required.

APPROVED BY THE CITY ATTORNEY
Not Applicable

ATTACHMENTS

1. Vicinity Map

2. Resolution No. 3106

3. Exhibit A of Resolution No. 3106

4. Exhibit B of Resolution No. 3106

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WINTERS DR

HEARTNUT ST

S MANNEL AVE

PLANADA DR HICKORY ST

TREVINO TERRACE

MARIE ST

LORI LN

LA DANTE ST

FLORES WAY

S MANNEL AVE

COMMERCE WAY

LACEY ST

MCKENNA CT

ESTE ST

JACEY ANN CT

E ASH AVE

E LOS ANGELES AVE

THOMPSON ST

BIRCH ST

NICKEL ST

E ASH AVE

S CENTRAL VALLEY HWY

S BEECH AVE
Exhibit 1 - Tract 7498 Vicinity Map
Parcels
Tract 7498 Limits
Shafter City Limits
Road Centerlines
Arterial
Collector
Highway
Local
0 0.05 0.1 0.2 mi
0 0.1 0.2 0.4 km
City of Shafter
City of Shafter | Source: U.S. Census Bureau | County of Kern Planning Department, Bakersfield, California. | Kern County Assessor's Office, Mapping Section.

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EXHIBIT 2
RESOLUTION NO. 3106

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SHAFTER

FINDING THAT NO FURTHER ENVIRONMENTAL REVIEW IS REQUIRED PURSUANT TO CEQA GUIDELINES SECTION 15162 BECAUSE THE PROJECT

IS WITHIN THE SCOPE OF THE PREVIOUSLY ADOPTED MITIGATED NEGATIVE DECLARATION (SCH NO. 2026020740), AND APPROVING TENTATIVE TRACT NO. 7498, AS DEPICTED IN EXHIBIT “A” WITH CONDITIONS OF APPROVAL AS SHOWN IN EXHIBIT “B” TO ALLOW THE RESIDENTIAL SUBDIVISION OF AN APPROXIMATE 40-ACRE SITE INTO 177

LOTS LOCATED TO THE SOUTHEAST AND SOUTHWEST OF THE
INTERSECTION OF E. LOS ANGELES AVENUE AND S. MANNEL AVENUE (APNs 028-290-03 AND 028-290-04)
WHEREAS, Cornerstone Engineering, 5509 Young Street, Bakersfield, CA 93311, on behalf of V Lions Holdings, LLC., PO Box 1200, Wasco, CA 93280, submitted a tentative tract map application to the City of Shafter to subdivide approximately 40 acres (gross) into 177 lots (consisting of 176 singlefamily residential lots and 1 sump lot) located generally southeast and southwest of the intersection of E Los Angeles Avenue and S Mannel Avenue (Assessor Parcel Numbers 028-290-03 and 028-290-04); and
WHEREAS, V Lions Holdings, LLC., PO Box 1200, Wasco, CA 93280, is requesting approval of Tentative Tract No. 7498 on that certain property in the City of Shafter as shown in Exhibit “A”; and WHEREAS, the Planning Commission did, on Tuesday, July 14, 2026, approve Resolution No. 26-486; a resolution of the Planning Commission of the City of Shafter recommending that the City Council approve Tentative Tract No. 7498 with conditions of approval; and WHEREAS, the City Council, through the City Clerk, did set Tuesday, August 04, 2026, at the hour of 6:00 p.m. in the Council Chambers of City Hall, 336 Pacific Avenue, Shafter, California, as the time and place for a public hearing before said City Council on said proposal, and notice of the public hearing was given in the manner provided in Title 16 of the Shafter Municipal Code; and WHEREAS, the project is within the scope of the Mitigated Negative Declaration (MND) that was prepared and approved for General Plan Amendment No. 25-41 and Zone Change No. 25-74 (SCH No. 2026020740) pursuant to Resolution No. 3079; and
WHEREAS, the certified MND adequately describes the activity of the residential development proposed in Tentative Tract No. 7498 and is consistent with the Shafter General Plan, and therefore, no further environmental review is required; and
WHEREAS, the facts presented in the staff report and evidence at the above-referenced public hearing support the findings contained in this resolution; and WHEREAS, at said public hearing held on August 04, 2026, the proposed tentative tract map was duly heard and considered, and the City Council did find as follows:

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Shafter City Council Resolution No. 3106
August 4, 2026

Page 2 ends

1. Pursuant to State CEQA Guidelines Section 15162, the environmental impacts of the residential development proposed in Tentative Tract No. 7498 were previously analyzed under a Mitigated Negative Declaration (MND) adopted for General Plan Amendment No. 25-41 and Zone Change No. 25-74 (SCH No. 2026020740). Tentative Tract No. 7498 is entirely within the scope of that prior environmental analysis, no substantial changes or new information have occurred, and therefore, no further environmental review is required.

2. Tentative Tract No. 7498, together with the provisions for its design and improvement, is consistent with the Shafter General Plan.

3. The site is physically suitable for the proposed type and density of development.

4. The design of the subdivision and the proposed improvements are not likely to cause substantial environmental damage or substantially injure fish or wildlife or their habitat.

5. The design of the proposed subdivision and the type of improvements proposed are not likely to cause serious public health or safety problems.

6. The design of the proposed subdivision and the type of proposed improvements will not conflict with easements, acquired by the public at large, for access through or use of property within the proposed subdivision.

7. The proposed subdivision, consistent with California Government Code Section 66412.3, balances the housing needs of the region against the public service needs of the City’s residents and available fiscal and environmental resources.

8. The design of the subdivision provides, to the extent feasible, for future passive or natural heating or cooling opportunities in the subdivision.

9. The discharge of waste from the proposed subdivision into the existing sewer system will not result in a violation of existing requirements prescribed by the Regional Water Quality Control Board.

10. The proposed subdivision is in substantial conformity with the Subdivision Map Act, and with Title 16 (Subdivision Ordinance) of the Shafter Municipal Code. The proposed lots are in substantial conformance with the provisions of the Shafter Zoning Ordinance and all lots have, or will have, adequate and proper access to public streets, sanitary sewer, water lines, fire hydrants, drainage structures and utilities.

11. The attached Conditions of Approval are deemed necessary for the safety and welfare of the community.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Shafter, in a regular meeting on the 4th day of August 2026, hereby approves Tentative Tract Map No. 7498 as described above and shown in Exhibit “A”, with the above findings and the conditions of approval as provided in Exhibit “B”.

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Shafter City Council Resolution No. 3106
August 4, 2026

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PASSED AND ADOPTED THIS 4th DAY OF AUGUST, 2026.
__________________________________
Chad Givens, Mayor
ATTEST
__________________________________
Yazmina Pallares, City Clerk

APPROVED AS TO FORM
__________________________________
Marco A. Martinez, City Attorney

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PHASE 1 PHASE 2
PHASE 4 PHASE 3
PER C.O.S. STANDARDS Scale: 1"=1'
MANNEL AVE. AND RUE AVE. SITE ENTRANCES - TENTATIVE V LIONS HOLDINGS, LLC TRACT 7498

KEY MAP
PER C.O.S. STANDARDS Scale: 1"=1'
LOS ANGELES AVENUE SECTION DETAIL 1
PER C.O.S. STANDARDS Scale: 1"=1'
TYPICAL 52' LOCAL STREET (PUBLIC) SECTION -
EXHIBIT "A"

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1 TTM-1.0 TENTATIVE V LIONS HOLDINGS, LLC TRACT 7498
0'

GRAPHIC SCALE
80' 40' 40' 80'
( IN FEET )
1 inch = 80 ft.

PHASE 4
PHASE 3
PHASE 1
PHASE 2
PHASE 1 PHASE 4 APN: 028-290-02 APN: 028-290-05
TRACT 6490
PHASE 1
APN: 028-180-57 BK. 67, PGs. 71-73 OF MAPS APN: 028-280-03

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TENTATIVE V LIONS HOLDINGS, LLC TRACT 7498
0'

GRAPHIC SCALE
80' 40' 40' 80'
( IN FEET )
1 inch = 80 ft. PHASE 2 PHASE 3 PHASE 1 PHASE 2
PHASE 3
PHASE 4 APN: 028-290-02 APN: 028-290-05
APN: 028-290-13 APN: 028-290-12

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1 EXHIBIT ‘B’

CONDITIONS OF APPROVAL
TENTATIVE TRACT NO. 7498

GENERAL

1. The owner(s), project proponent(s), and/or applicant(s) (hereinafter referred to as “Developer”), solely at their cost and expense, shall defend, indemnify and hold harmless the City of Shafter (hereinafter referred to as “City”), its agents, legislative bodies, officers and employees regarding any legal or administrative action, claim or proceeding concerning approval of Tentative Tract No. 7498 and/or related actions including, without limitation, actions taken or not taken with respect to the California Environmental Quality Act (hereinafter referred to as “CEQA”); or, at its election and in the alternative, shall relinquish such approval. Developer shall assume the defense of the City in any such legal or administrative action, claim or proceeding with legal counsel paid for in the entirety by Developer, but subject to the City's reasonable approvals. Developer shall also reimburse the City, its agents, legislative bodies, officers and employees for any judgments, amounts paid in settlements, court costs and attorneys' fees which the City, its agents, legislative bodies, officers and employees may be required to pay or otherwise pay because of such action, claim, or proceeding. The City may, at its sole discretion, participate at its own expense in the defense of any such action, claim or proceeding, but such participation shall not relieve Developer’s obligations under these conditions of approval (hereinafter referred to as “Conditions”).

2. The Developer or the Developer’s engineer shall submit a list of all contractors and/or subcontractors performing work on this project to the City Finance Department and such contractors and subcontractors shall obtain valid business licenses to do business and/or work in the City of Shafter.

3. The following disclosure shall be given as part of transfer of properties: “All your real property is near property used for agricultural operations. You may be subject to inconveniences or discomfort arising from such operations on any 24-hour basis. Said discomforts may include, but not be limited to equipment noises, odors from manure or other chemicals, and dust or smoke. The City has determined that the use of real property for agricultural operations is a high priority and favored use to the City and Kern County and will not be considered a nuisance for those inconveniences or discomforts arising from agricultural operations, provided such operations are consistent with accepted customs, standards, and laws.”

4. Until all portions of the tentative tract have been developed, all vacant and undeveloped land, not being actively farmed, shall be maintained in a weed-free and clean manner by the Developer. Should said property not be so maintained, the City shall notify the property owner that the property is to be cleaned within thirty (30) days of receipt of said notice. If the property owner does not comply within the required time frame, City may then clear the land and bill the property owner for expenses incurred.

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2 5. Unless a final map is recorded, this tentative tract map shall expire twenty-four (24) months from the date of approval by the City Council, unless an extension is granted by the City Council or by state law. If a discretionary extension is requested, the Developer, not less than sixty (60) days prior to the expiration date, shall submit to the City, the applicable processing fees and a completed application requesting an extension of the map approval in accordance with the provisions of the Municipal Code and the Subdivision Map Act.

PLEASE NOTE: This will be the only notice given for the above specific expiration date.

The applicant is responsible for initiating an extension request.

6. All construction and development shall be in substantial accordance with all City approved submittals by the Developer, the approved Tentative Tract No. 7498 and Conditions of Approval included herein, and any approved alterations thereof.

PLANNING

7. Prior to initiating any grading or earthmoving within Tract No. 7498, the Developer shall provide the City of Shafter Planning Department with written confirmation from the San Joaquin Valley Air Pollution Control District (SJVAPCD) that the proposed development follows the requirements of the District’s Rule 9510.

8. The Developer shall be required to permanently maintain all landscaping, except for landscaping included in a Community Facilities District, including the replacement of any trees or shrubs that do not survive.

9. Only the street names or alternate street names that have been approved on the Tentative Tract Map shall be used within Tract No. 7498. If the Developer wishes to change the street names at any point in time, a street name change request will need to be submitted to the Shafter Planning Department and approved prior to using any street names which were not approved with the tentative map.

10. If the Developer proposes to make any substantial changes to the approved tentative map contents, the Developer shall submit a Substantial Conformance application to the Planning Director for review and approval. In such case, the City may request a Change of Conditions to update any affected conditions of approval, as reasonably necessary.

11. Approved access shall be provided for each lot in accordance with City standards.

12. All roof-mounted air conditioning equipment shall be located on the rear portion of the roof ridge line in such a manner as to be screened as much as practical from view from public streets.

13. With the exception of model houses, as provided in Section 3.080, Chapter 3, Title 16 (Subdivision Ordinance) of the Shafter Municipal Code, no building permit shall be issued by the City of Shafter until Tract No. 7498 has been recorded pursuant to the requirements of the California Subdivision Map Act and Title 16 (Subdivision Ordinance), of the Shafter Municipal Code.

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3 14. If Condition No. 144 (Subdivision Improvement Agreement) is initiated by the Developer and executed by the City of Shafter, no building permit shall be issued until wet utilities have been installed, an all-weather surface roadway is completed on the subject property, and survey stakes or other form of temporary documentation will be provided for, and approved by the Building and Safety Inspector, to verify building location. Missing stakes or other temporary documentation will result in delays in inspection schedule.

15. The following note shall appear on the final map and all grading and construction plans:
a. If during grading or construction, any plugged, abandoned, or unrecorded oil or gas wells are uncovered or damaged, the California Department of Conservation/Geologic Energy Management Division (CalGEM) shall be contacted to inspect and approve any remediation required.
b. If any abandoned water wells are located within the development or discovered during excavation or grading, the Kern County Public Health Department - Environmental Health Services Program must be contacted to obtain information for the proper permitting and destruction procedures.
c. Building setbacks on lots with existing plugged wells shall satisfy the requirements of the CalGEM. If the recommended setbacks cannot be satisfied, the Developer shall submit, concurrent with the submittal for a building permit for the impacted lot, written confirmation from the CalGEM that the setback provided is acceptable.

16. During grading operations, all activity shall be restricted to periods of low wind to reduce dust emissions. Verification of compliance will be the responsibility of the City of Shafter Building Inspection Division.

17. The Developer of Tract No. 7498 shall comply with all requirements of the San Joaquin Valley Air Pollution Control District (SJVAPCD), prior to, and while grading and developing the site. It is the Developer’s responsibility to contact the SJVAPCD to determine with which requirements/rules the Developer must comply.

18. Prior to recordation of any final map for Tract No. 7498, the Developer shall enter into a development agreement with the City of Shafter, in a form and substance reasonably approved and required by the City, which shall provide for a minimum square footage of residential units within the subdivision, and which shall provide for payment of park fees, traffic fees, and any other fees deemed necessary by the City.

19. All utilities shall be designed and constructed in such a way as to allow them to be extended into any future residential development areas.

20. If during development activities, any wells are encountered, the property owner is expected to immediately notify the CalGEM construction site well review engineer in the Inland district office, and file for Division review an amended site plan with well casing diagrams.

21. On all corner lots and/or reverse corner lots within the tract, fences/walls shall not be located within the first 5 feet of the Public Utility Easement behind the street side yard and frontPage 294 of 322 4 yard property lines. A note stating this must be included on all site plans during building permit review. The City will not permit walls nor fences to be built within the first five (5) feet of the PUE dedication on the side-yard of corner/reverse corner lots.

BUILDING

22. Prior to issuing a certificate of occupancy for any building, the building address(es) shall be permanently installed and be clearly visible from the street. Addressing scheme shall be requested from and approved by the Shafter Planning Department.

23. Prior to issuance of the first building permit, the Developer shall provide written confirmation to the City from the SJVAPCD confirming that any and all applicable off-site mitigation fees for the subdivision have been paid in full.

24. No final inspection or issuance of a certificate of occupancy shall be approved for any lot/building until all required improvements have been completed by the Developer and accepted by the City.

25. Developer shall pay all development fees and impact fees adopted by the City in effect at the time of issuance of any building permit or Certificate of Occupancy.

26. Developer shall comply with the latest California Building Code, California Mechanical Code, California Plumbing Code, California Electrical Code, California Fire Code and all other applicable codes, ordinances, regulations, and development standards in effect at the time of issuance of relative permits.

27. Prior to issuance of each building permit for houses within Tract No. 7498, Developer shall submit a site plan to the City of Shafter Planning Department for review and approval. The information shown on the site plan shall include but not be limited to: reference to the floor plan layout and building elevation (including exterior building materials and colors), easement locations and widths, patios, porches, driveways, fences, walls, etc. for each of the single-family residences to be constructed within Tract No. 7498. The siting of each structure on the plans must comply with the applicable lot development standards of the latest Shafter Zoning Ordinance related to the R-1 zone.

28. Private drives constructed of Portland cement concrete shall be constructed at a minimum width of 16 feet from the edge of public roadway pavement to the garage of each home.

29. A landscaping plan, including design of a permanent irrigation system, shall be submitted to and approved by the Planning Director and City Engineer. Said approved landscape and irrigation plan shall be implemented prior to receiving a final inspection for any house constructed within the subdivision. All landscaping is subject to the requirements for landscaping contained herein these conditions and with City Standards. Landscaping shall include an irrigation system for both the front-yard and the street side-yard (where applicable) provided the street side-yard is not obscured from sight from an adjacent street by fencing, for each lot within the subdivision. Landscaping shall comply with current State guidelines for residential landscaping.

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5 30. Fiber Optic Installation for Dwelling Units: Owner agrees to install in each dwelling unit the following fiber optic requirements:
a. Install a Dedicated City Fiber Enclosure adjacent to the other utility enclosures or a Common Communication Enclosure (collectively “Utility Enclosure”) for the proposed communications utilities (phone, cable, fiber, etc.). The enclosure type shall be Benner-Nawman 14326W-UL or as approved by the City. The Utility Enclosure may face the garage exterior or interior and shall include one 120-volt, 15-amp convenience receptacle inside the enclosure mounted on either side of the wall. A surge-protected receptacle must be installed or verification that an equivalent surge protection device (SPD) has been installed as an integral part of the service equipment or located immediately adjacent to the service equipment to be in accordance with article 230.67 of the California Electrical Code.
b. Install a wireless-transparent Structured Media Enclosure (“Media Enclosure”), such as models: Legrand 30” ENP3050, Legrand 42” ENP4250, Leviton 30” 49605-30W, Primex Verge 30” P3000, 42” Primex Verge P4200, or as approved by the City. The Media Enclosure shall be installed in the wall of a master bedroom closet or a laundry room furthest from the water supply and maintain a minimum 48-inch horizontal clearance between and 24-inch clearance above any metallic appliances or accessories.

The Media Enclosure shall include one 120-volt, 15-amp convenience receptacle located inside the enclosure.
c. Install a conduit pathway from the Utility Enclosure to the Media Enclosure with a minimum of one (1) 1-inch diameter non-metallic, flexible conduit which shall maintain a minimum 36-inch bend radius and protrude a minimum of 6-inches into the enclosures. The conduit shall be marked with orange Tyvek or plastic tags, labeled “City Fiber 661-746-8929”, tie wrapped to the conduit in plain view within the enclosures.
d. Install a continuous conduit without breaks or couplings from the existing City Fiber Distribution Enclosure located in the right-of-way (“Distribution Enclosure”) to the bottom side of the Utility Enclosure. The conduit shall be installed a minimum of 36- inches below grade, protrude a minimum of 12-inches into the Utility Enclosure, be orange in color, and be factory labeled “City of Shafter 661-746-8929”. If the conduit does not have an integrated tracer wire, a continuous external #12 AWG solidconductor tracer wire with high-density polyethylene insulation rated for direct burial shall be installed along with the conduit leaving a minimum 15-feet of slack coiled in the Distribution Enclosure and 3-feet of slack coiled in the Utility Enclosure. The conduit and tracer wire shall be inspected by a City of Shafter representative before shading and backfilling.
i. After backfilling, polyester cable pulling tape (Muletape), or equivalent, shall be installed in all conduit paths between the Distribution Enclosure and the Utility Enclosure. Mule tape shall be slack (no tension) and fastened to the plug or cap.
ii. Couplings shall be used to repair damaged or short-length conduit only if approved by the City. Conduit couplings shall be an air-tight, water-tight, pushon compression fitting approved by the City. Tracer wire couplings shall be airPage 296 of 322 6 tight, water-tight, twist on or compression connector approved by the City.

Coupling integrity shall be inspected by a City of Shafter representative. e. Category 6 Unshielded Twisted Pair (CAT 6 UTP) cable (or as approved by the City) shall be installed according to industry standards and the requirements below, and shall not be pinched, stapled, bent sharply, or crossing any sharp, unprotected edges:
i. Install a minimum of two (2) cables from the Utility Enclosure to the Media Enclosure.

31. Developer shall be responsible for complying with all Pacific Gas and Electric requirements, for any development activity adjacent to/or within PG&E owned property, facilities and easements. Access to PG&E facilities must be maintained for PG&E.

Vegetation planted near PG&E overhead electric facilities must follow any PG&E requirements.

ENGINEERING

32. Developer shall remove and replace any existing public or private improvements that may become damaged during any phase of construction, as required by the City Engineer. The contractor working within the public right-of-way shall obtain an encroachment permit from the City Engineer prior to commencing any such work.

33. Developer shall relocate and/or install all necessary infrastructure to provide utilities to the proposed project.

34. A ten (10) foot-wide public utility easement, as shown on the tentative map, shall be provided in the front of all lots and on the street side of all corner lots/reverse corner lots as requested by the utility companies and/or the City Engineer. Easements shall be granted with the final map. Easements must also be shown on site plans during building permit application review.

35. Easements to be given to the City or any other public utility agency for sewer, water, storm drain, electrical, or any other utility or similar purpose shall not cross private property without prior approval of the City Engineer.

36. Any above-ground utility cabinets or facilities to be located within the road right-of-way or public utility easement shall be permitted only upon approval by the City Engineer. Such approval will be made in writing, upon written request of the applicant and/or the affected utility company.

37. Any obstructions including utilities, irrigation lines, etc., shall be removed and/or relocated, if necessary, at the expense of the Developer.

38. No final inspection shall be approved until all required improvements have been completed by the applicant and accepted by the City of Shafter.

39. All new utilities shall be underground service.

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7 40. Developer shall underground the existing overhead utility poles along E Los Angeles Avenue prior to Notice of Completion.

41. During construction, vehicular access points shall be covered with decomposed granite, road oil, or some other treatment acceptable to the City Engineer, to prevent generation of dust during periods of vehicular activity and/or windy conditions and tracking of mud and dirt on public roadways.

42. Prior to the issuance of any Certificate of Occupancy within Tract No. 7498, all required improvements shall be completed and accepted by the City of Shafter. Required improvements shall be those improvements necessary to provide adequate City Services to the development as determined by the City Engineer.

43. All improvements shall be complete within one (1) year from the date of filing of the final map for the development unless a time extension is granted by the City Engineer. The timing of improvements shall be subject to approval of the City Engineer.

44. Type and location of centralized mail delivery units shall be determined by the postal service. If the postal service requires special easements for the placement of the delivery units, then said easements shall be shown on the final map.

45. All road, landscaping, trail, sidewalk, block wall, and paseo improvements, required by and consistent with Tract No. 7498, shall be constructed by the Developer and approved by the City of Shafter prior to recordation of the subject phase final map or shall be included as a public improvement in the subdivision improvement agreement. Wall plans, materials, and dimensions shall be consistent with the City of Shafter requirements and the approved Tentative Tract No. 7498, and they shall be approved by the City of Shafter prior to construction. The timing of improvements shall be subject to the approval of the City Engineer. Construction of all improvements included in the subdivision improvement agreement shall be completed by the Developer prior to the issuance of the Notice of Completion for the subject phase, unless stated otherwise in these Conditions of Approval.

46. All public streets, landscaping, sidewalks, block wall, and other applicable improvement areas within the map boundary shall be dedicated to the City of Shafter with the recorded map for its respective phase. Areas located outside the tract map boundary shall be dedicated by separate instrument prior to, or concurrent with, recording of the final map phase.

47. Developer shall place the entire subdivision within a new or add to an existing Community Facilities District (CFD) prior to the recordation of any final map and prior to acceptance of improvements by the City of Shafter. The maintenance district shall be set-up to cover the cost of street lighting, drainage basin maintenance, landscaping maintenance, trail maintenance, park maintenance, road sealing, street sweeping, as well as all administrative costs associated with the City of Shafter’s management of the District. a. The Developer shall be required to cover the cost of street lighting, maintain all landscaping, park maintenance, including the replacement of any trees or shrubs that do not survive, within public right-of-way and landscape easements for a period of one

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8 (1) year after final inspection of the landscape improvements, or until such time as the maintenance district is formed, whichever shall occur last. b. Developer shall be fully responsible for the formation, and formation cost of the Community Facilities District, as directed by the City Engineer. c. Developer shall be fully responsible for paying the cost of water for all landscaping and electricity for the streetlights for a period of one (1) year after issuance of Notice of Completion.

48. Engineered plans and building permits are required for all block walls greater than 6 feet in height. Block walls shall be built by the Developer at those locations shown upon the approved Tract No. 7498.

49. All block walls shall have architectural features and shall be subject to City Engineer approval.

50. Developer shall dedicate wall footing easements to the City on the residential lot side, where deemed necessary, at a width that meets the requirements of the City Engineer. Such easements shall be shown on, and dedicated with, the final map.

51. Developer shall design and install a system of conduits, terminal enclosures, distribution enclosures, splice enclosures, connection points, and hand holes for a fiber optic network to each buildable lot within the development. Design and material specifications are available from the City of Shafter. Plans shall be submitted to and approved by the City of Shafter, prior to recordation of the final map, showing the proposed utility trench and all appurtenant hardware. The design shall include the following minimum specifications:
a. A combination of fiber optic conduits shall minimally include 4” SDR-11 HDPE, 2” SDR-11 HDPE, 1.25” SDR-11 HDPE, and 7-Way bundled HPDE innerduct with attached tracer wire. Fiber optic conduits may be joint-trenched with other utility company pipes and/or conduits.
b. All underground fiber optic conduits, innerduct bundles, etc. shall be factory-labeled “City of Shafter 661-746-8929”. Conduits shall be identified by a permanent marking, with the address number of the residence they serve, within the distribution enclosures. c. All underground fiber optic conduit paths shall have tracer wire. If the conduit does not have an integrated tracer wire, a continuous external #12 AWG solid-conductor tracer wire with high-density polyethylene insulation rated for direct burial shall be installed along with the conduit leaving a minimum 15-feet of slack coiled in the endpoint enclosures.
d. The ends of all fiber optic conduits and innerducts shall be plugged or capped to prevent dirt, debris, or foreign objects from entering.
e. After backfilling, all conduits shall be checked for obstructions, and re-excavated and repaired or replaced as required. All conduits ½-inch or larger shall require polyester cable pulling tape (Muletape) or equivalent installed. Polyester cable pulling tape (Muletape) shall be slack (no tension) and fastened to the plug or cap. Innerducts shall be mandrel tested and are subject to inspection by a City of Shafter representative.

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9 f. A combination of underground utility enclosures shall minimally include 36”W x 60”L x 36”D polymer concrete enclosures with dual torsion covers, 36”W x 36”L x 24-36”D and 24”W x 36”L x 24-36”D High Density Polyethylene (HDPE) enclosures. g. All underground utility enclosures shall be factory-stamped “City Fiber”.

52. Prior to construction, all improvement plans and landscaping plans shall be approved by the City of Shafter.

53. The side-yard fences constructed along local streets shall consist of a masonry block retaining wall topped with a wooden fence, or other material as approved by the City Engineer. Sufficient area behind the sidewalk shall be provided to accommodate the installation of community mailboxes, where required by the US Postal Service.

ENGINEERING: GRADING & DRAINAGE

54. Prior to review of any required improvement plans, both a drainage/hydrology study and a grading plan shall be submitted to and approved by the City Engineer. A master grading plan covering Tract No. 7498 shall be submitted and approved. Future development plans shall be based upon the approved master plan. Any deviation from the approved master plan will require the approval of the City Engineer.

55. The drainage/hydrology study and hydraulic analysis for the project shall be performed by a registered civil engineer and submitted to the City Engineer for review and approval. The study shall demonstrate that any potential run-off will not impact surrounding properties.

The study shall focus on the project property and any affected adjacent properties.

56. A soils report, prepared by a registered civil engineer shall be submitted along with the grading plan. Soils report shall be performed in compliance with the latest edition of California Building Code, and Chapter 15.28 of the Shafter Municipal Code. In addition, all site grading, earthwork and building design shall be performed in accordance with the recommendations of the soils report.

57. A grading permit shall be obtained from the City prior to commencement of any grading activity.

58. Prior to issuance of a building permit, the Developer shall file a “Rough Grade Certificate” with the City in accordance with the City Engineering Design Standards. Rough Grade Certificate shall be accompanied by certified soil compaction test data from an acceptable materials testing company and a certificate that the rough grade is in substantial conformance with the approved grading plan and Chapter 15.28 of the Shafter Municipal Code. Developer to obtain “Rough Grade Certificate” form from the City.

59. Prior to final approval, acceptance of work, or issuance of Certificate of Occupancy, the Developer’s engineer shall file a “Final Grade Certificate” stating that all required grading has been done in accordance with the approved grading plan. Developer to obtain “Final Grade Certificate” form from the City.

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10 60. The location and frequency of soils compaction testing shall be per the City Engineer. Soils compaction testing shall be provided by the Developer.

61. Minimum slopes across any flat surface shall be 1%. For slopes less than 1%, surface drainage shall be channeled into a concrete v-gutter, curb and gutter, underground storm drain, or similar drainage structure.

62. All building pads shall provide a minimum of 2% slope away from each house to an earth swale, and a minimum of 1% from the highest point in the swale to the street. A four-inch landscape drain may be used to replace the earth swale. The minimum pad height shall be twelve (12) inches above the adjacent curb.

63. Street side corner lots shall not have their side yard slope (finish grade to back of sidewalk) exceed 4 horizontal: 1 vertical. If maximum slope is exceeded, side yard shall be retained in an approved manner.

64. Wood retaining structures shall not be approved. Developer shall use masonry, keystone, concrete, or other approved material.

65. Engineered off-site drainage plans for Tentative Tract No. 7498 shall be submitted to and approved by the City of Shafter prior to recordation of a final map. The approved drainage facilities shall be constructed and approved by the City of Shafter prior to issuance of building permits.

66. All storm drain pipes and manholes shall be installed with the street paving. Catch basin shall be installed per city standards.

67. Drainage Basin:
a. Developer shall construct a drainage basin on Lot A as shown on the Tentative Tract Map No. 7498.
b. Developer shall provide calculations showing all drainage areas utilizing the basin and show the percentage of the capacity utilized by Tract No. 7498. Basin size calculations shall be submitted by the Developer to the City Engineer for review and approval prior to final map recording.
c. Developer shall construct permanent masonry walls around the entire perimeter of the proposed drainage basin on Lot A. The masonry walls shall be a minimum height of 6- feet, shall enclose the entire sump, and shall include a minimum 16’-wide access controlled by a wrought-iron gate with metal screening. A lockable privacy gate, concrete driveway, access easements, and drainage easements shall be provided for access and storm drain lines to the drainage sump as required by the City Engineer.

68. The number and location of cross gutters allowed, if any, will be determined during the grading and drainage review process. The minimum grade for allowed cross gutters shall be 0.6%.

69. Grading onto adjacent property shall not be done without written permission from the adjacent property owner.

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11 70. The Office of the City Engineer shall be notified 24 hours in advance of the placement of any fill material.

71. Fill and/or import material shall be subject to the approval of the soils engineer.

72. Developer is responsible for the grading of lot pad areas to within 0.1 foot of the design elevations.

73. All areas in the site on which structures are to be placed must be compacted to 90% relative density, for a minimum distance of 5-feet in all directions from the foundations of the structure.

74. All fill material shall be moisture conditioned to at least 2% above optimum moisture and compacted to 90% relative density, as determined by test methods referenced in Chapter

15.28 of the Shafter Municipal Code, and so certified by test and report from the soils engineer.

75. The design engineer shall exercise sufficient supervisory control during grading operations to ensure compliance with the plans, specifications, and code within his purview.

76. The placement of fill shall be in 6-inch-maximum lifts, compacted with heavy compaction equipment approved by the City Engineer, unless specifically recommended otherwise in the preliminary soils report.

77. Compaction in proposed pavement areas should be per City standards and should extend to a minimum distance of 2-feet beyond the outside edges of pavement.

78. All cut and fill slopes shall not be steeper than 2 horizontal to 1 vertical.

79. All fill areas to be cleared of all vegetation and other unsuitable materials for a structural fill and the areas shall be scarified to a depth of 6-inches, unless specifically noted otherwise in the preliminary soils report.

80. All slopes in excess of three (3) feet shall be prepared and maintained to control against erosion.

81. Grading work shall be supervised as engineered grading in accordance with Chapter 15.28 of the Shafter Municipal Code.

82. During grading, reasonable searching should be performed for concealed subsurface obstructions. All abandoned subsurface obstructions should be removed. If terminus of any abandoned piping is outside the project limits, the piping should be removed within the project and properly capped at the project boundary.

83. Developer's attention is directed to the provisions of SJVAPCD's Regulation VIII - Fugitive PM 10 Prohibitions, which requires the submission of a Dust Control Plan for certain construction projects. Developer shall comply with all applicable SJVAPCD rules

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12 and regulations including the submission of a Dust Control Plan as may be applicable.

Current SJVAPCD rules and regulations are available online at http://www.valleyair.org/rules/1ruleslist.htm.

84. It shall be the Developer's responsibility to prevent a dust nuisance from originating from the site of the work as a result of his operations. Preventative measures to be taken by the Contractor shall include but shall not be limited to the following:
a. Water shall be applied to all unpaved areas as required to prevent the surface from becoming dry enough to permit dust formation.
b. Paved surfaces over which vehicular traffic is permitted to travel shall be kept free of dirt.
c. Temporary suspension of the work, either as a result of order by the Engineer or as a result of conditions beyond the control of the Contractor shall not relieve the Contractor from his responsibility for dust control as set forth herein.

85. Any temporary drainage basin serving the subdivision shall be surrounded by a chain link fence with privacy slats.

ENGINEERING: WATER/FIRE

86. The Developer shall install a water system for the project together with such equipment, pipeline, and facilities, including individual water services, as may be necessary to ensure the development has a minimum supply of water for the purposes of the development including fire protection. Developer shall submit water improvement plans to the City Engineer for review and approval. Developer shall construct the public water system in accordance with Subdivision Engineering Design Manual for the subject property.

87. The Developer shall provide a Will Serve Letter from City of Shafter Public Works Department prior to any final map recording.

88. To the greatest extent possible, wet utilities (sewer, water, storm drain) shall be installed between the flowlines on all streets.

89. Fire protection shall be provided per Kern County Fire Department Standards for the type of development. A Certificate of Approval shall be obtained by the Developer from the Kern County Fire Department. Evidence of this Certificate of Approval shall be provided to the City prior to acceptance of the water system by the City.

90. Prior to installation, all water improvement plans shall be reviewed and approved by the Kern County Fire Department. The review includes hydrant locations and access into and out of the tract. A plan review permit, obtained from the Kern County Fire Department, must be applied for and paid for prior to the review of any modified or new tract map.

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13 91. The water line size, location and materials shall be subject to the approval of the City Engineer. The minimum water line size shall be in accordance with the Subdivision and Engineering Design Manual.

92. Tie-ins to existing water mains shall be constructed in a manner approved by the City Engineer.

93. Whenever possible, the water system shall be looped to minimize dead ends.

94. Water services shall be installed for each residential property.

95. No permanent structures shall be constructed over proposed or existing utility easements.

96. Prior to issuance of a building permit, water mains and fire hydrants to be installed by applicant shall be completed, tested, and accepted (CFC).

97. The Developer shall provide AWWA approved fire hydrants that comply with Kern County Development Standards (Clow 850 or equivalent).

98. The required fire hydrants shall be placed a maximum of 660 feet apart throughout the tract for firefighting purposes. Final hydrant locations shall be approved by Kern County Fire prior to installation.

99. The Developer shall install reflective markers to identify hydrant locations pursuant to California Health and Safety Code 13060.
100. The required fire hydrants shall provide a minimum fire flow of 1,500 gallons per minute for 2 hours with 20 PSI residual, or as required by the Kern County Fire Department. 101. The water system for the required fire hydrants shall be looped, if practicable. 102. The Developer shall install the required water, access and street signs prior to issuance of any building permit.
103. A fire flow test shall be performed and approved by the Kern County Fire Department prior to issuance of any building permit and before any Certificates of Occupancy are issued.

The Kern County Fire Department shall be contacted for a fire flow test and approval prior to the commencement of construction.
104. All fire access roads to each parcel must meet specifications set forth in Section 503.2 of the California Fire Code and the applicable Appendix and Ordinance sections. 105. All new residential construction will require automatic fire sprinklers and shall meet all other fire requirements of the California Fire Code.
106. Water stub outs shall be provided at development boundaries for future connections.

ENGINEERING: SEWER

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14 107. No properties shall be served by a septic system. 108. Developer shall install a sewer system for the development together with such materials, pipelines, manholes, and individual services for the purposes of the development.

Developer shall submit sewer improvement plans to the City Engineer for review and approval prior to recordation of the final map. Developer shall construct the public sewer system in accordance with the Shafter Subdivision Engineering Design Manual for the subject property.
109. All fees and costs necessary to connect to the sanitary sewer collection and treatment system shall be those in effect at the time the service connection is made. 110. Sewer line size, location, slope, and materials shall be subject to the approval of the City Engineer. Minimum sewer line size, location, slope, and materials shall also be in accordance with the Subdivision and Engineering Design Manual. 111. Tie-ins to existing sewer mains, manholes, or other structures shall be constructed as directed by the City Engineer.
112. Sewer pipelines and manholes shall be installed within the proposed street paving of the development.
113. Separate sewer services shall be installed for each property. At no time shall sewer be joint trenched with water.
114. Sewer lines shall not be permitted in easements between the backyards or side-yards of residential lots.
115. No permanent structures shall be constructed over proposed or existing utility easements. 116. Sewer stub outs shall be provided at development boundaries for future connections.

ENGINEERING: STREET & TRAFFIC
117. Developer shall construct and provide rights-of-way for all streets, curb, gutter, cross gutter, drainage facilities, sidewalks, walls, landscaping, streetlights, drive approaches, intersections, and other related improvements consistent with Tentative Tract No. 7498 and the Shafter Municipal Code. Developer shall submit street improvement plans prepared by a registered civil engineer to the City Engineer for review and approval and shall include:

Preliminary soils report, preliminary engineer’s estimate of construction costs; and plan check and inspection fees.
118. Additional rights of way easements or dedications necessary for street and/or public utility improvements located outside the tract boundary shall be granted to the City of Shafter prior to a final map recording, unless stated otherwise herein.

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15 119. The drawings shall include all proposed public street pavement, curb, gutter, driveways, streetlights, cross gutter, catch basins, striping, signage, traffic signals, and sidewalks along the perimeter of all streets adjacent to or within the project site. Said improvements shall be constructed as per the street improvement plans approved by the City Engineer in a manner consistent with the Subdivision and Engineering Design Manual. 120. All local streets shall be developed as full-width streets in accordance with standards and specifications of the City of Shafter, as approved by the City Engineer. All local streets shall be fifty-two (52) feet full right-of-way with forty (40) feet flowline to flowline. 121. Should a street transition to another street with a ninety (90) degree turn occur, that transition shall be a street knuckle and shall be shown on the final tract map and in the street improvement plans.
122. Cul-de-sac and street knuckle dimensions and radii to conform to the Subdivision and Engineering Design Manual and/or as approved by the City Engineer. The use of off-set cul-de-sacs is approved provided they meet the requirements of the City of Shafter. 123. Street signs shall be installed per City standards as required by the City Engineer. 124. During construction, the Developer shall maintain the project, including all adjacent streets in a dust free condition. This condition applies at all times including weekends, evenings, and nighttime hours. During construction operations, cleanup of soil from the public roadways shall be required, if deemed necessary, by the City Engineer. 125. All utilities proposed under paving shall be installed prior to paving. Cover over utilities shall be at a depth as approved by the City Engineer.
126. Driveway approaches shall be constructed in a manner consistent with the requirements for residential approaches as set forth in the City’s Subdivision and Engineering Design Manual or as permitted by the City Engineer.
127. Sidewalk, including curb, shall be six (6) feet wide and shall be placed behind the curb, or as specified by the City Engineer. Transitions at intersections and wheelchair ramps shall be provided and installed per the City’s Subdivision and Engineering Design Manual. 128. Monument and monument covers shall be set per City Standards. 129. Temporary turnarounds, if required, including right-of-way, shall be granted, designed, and installed per the Subdivision and Engineering Design Standards. 130. Developer shall install a temporary barricade in conformance with City standards at the south end of Rue Avenue.
131. Property line locations shall be marked with a chiseled line on the top of curb for all property lines. The location of all sewer laterals shall be indicated on the top or face of curb with a stamped “S”.

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16 132. Street lighting shall be installed in accordance with the City Engineering and Subdivision Design Manual as directed by the City Engineer. Developer shall coordinate with Pacific Gas & Electric to ensure that the streetlights are established under the LS-2A rate schedule. 133. Secondary access easements shall be provided at the request of the City Engineer. Within any given phase of development, secondary access easements and additional improvements for circulation shall be provided by the Developer in a manner approved by the City Engineer. Access roads shall be twenty (20) feet in width and shall consist of three (3) inches of Class II aggregate base over six (6) inches of native material compacted to 90% relative maximum density.
134. Waivers of direct access shall be dedicated and shown on the final map(s) for Tract No. 7498 as approved on the tentative map, subject to change by the request of the City Engineer. Said waivers of direct access shall also be shown on the individual plot plans during building permit application.
135. TRA-1: Prior to the issuance of any building permit, the Developer shall either pay or bond for 8.7% of the cost, as determined by the City Engineer, for a future traffic signal at the intersection of Shafter Avenue and E Los Angeles Avenue. Evidence of compliance shall be provided to the Planning Department for the record.
136. The full length of the proposed block wall along E Los Angeles Ave shall be built by the Developer with the first phase of development, prior to Notice of Completion. 137. E Los Angeles Ave shall be improved from the southern R/W limit to the centerline by the Developer along the length of the tract boundary. The Developer shall complete the required improvements with Phase 1, including curb, gutter, sidewalk, landscaping, street lighting, wall improvements, and any other improvements deemed necessary by the City Engineer. Existing pavement south of the centerline shall be re-paved by Developer.

ENGINEERING: LANDSCAPING
138. Electrical Source for Landscaping:
a. Developer shall supply and install landscaping electrical services to power any and all required timers, solenoids, pumps, motorized equipment. Cabinets and meter pedestals shall be approved by the City of Shafter. Developer shall contract with Pacific, Gas & Electric the location of each pedestal and make all arrangements for them to deliver power at each location.
139. Water Source for Landscaping:
a. Landscaping water service point of connection shall be approved by the City Engineer.

The water source shall be from the non-potable water system installed with the tract. 140. Landscaping Enclosure:

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17 a. Landscaping timers, electrical service fuses, breakers, etc., shall be installed within a commercial grade landscaping enclosure.
b. Commercial grade landscaping enclosure shall be installed within the dedicated landscaping area adjacent to the water source and/or electrical source. c. Commercial grade landscaping enclosure shall be installed on a concrete foundation poured onto a minimum of six (6) inches of native subgrade compacted to 90% (or in accordance with manufacturer’s recommendations, whichever is more stringent). d. The City of Shafter Subdivision and Design Manual requires a 110-volt duplex electrical service within the enclosure.
141. The Developer shall comply with all requirements for grading and erosion control, including the prevention of sedimentation or potential damage to off-site property. 142. Sleeves shall be placed under the proposed paving for landscape piping or low voltage electrical per the City Engineer.
143. Public landscaping throughout Tract 7498 shall be reviewed and approved by the City of Shafter prior to installation. Plans shall show the locations of water and electrical services necessary to serve the landscaping and lighting needs of the areas.

ENGINEERING: SUBDIVISION IMPROVEMENT AGREEMENT
144. The Developer shall furnish the City of Shafter acceptable security to guarantee the construction of public improvements in accordance with all applicable provisions of the City of Shafter Municipal Code and the California Subdivision Map Act. The Developer shall enter into a subdivision improvement agreement with the City of Shafter for public improvements that are not yet completed at the time of Final Map approval. The subdivision improvement agreement must be approved by the Shafter City Council and recorded with the Kern County Assessor-Recorder.

MITIGATION MONITORING AND REPORTING PROGRAM
145. AIR-1 Prior to grading plan approval, the applicant/developer shall submit documentation to the Planning Department that they will/have met all air quality control measures, design features, and rules required by the San Joaquin Valley Air Pollution Control District, including but not limited to the following:
a. To minimize Fugitive Dust during construction, the applicant will comply with the following:
i. Apply water to unpaved surfaces and areas.
ii. Use non-toxic chemical or organic dust suppressants on unpaved roads and traffic areas.
iii. Limit or reduce vehicle speed on unpaved roads and traffic areas. iv. Maintain areas in a stabilized condition by restricting vehicle access. v. Install wind barriers.
vi. During high winds, cease outdoor activities that disturb the soil.

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18 vii. Keep bulk materials sufficiently wet when handling. viii. Store and handle materials in a three-sided structure. ix. When storing bulk materials, apply water to the surface or cover the storage pile with a tarp.
x. Don’t overload haul trucks. Overloaded trucks are likely to spill bulk materials. xi. Cover haul trucks with a tarp or other suitable cover. Or, wet the top of the load enough to limit visible dust emissions.
xii. Clean the interior of cargo compartments on emptied haul trucks prior to leaving a site.
xiii. Prevent trackout by installing trackout control devices at all project access points.
xiv. Clean up trackout at least once a day. If along a busy road or highway, clean up trackout immediately.
xv. Monitor dust-generating activities and implement appropriate measures for maximum dust control.
b. Diesel Particulate Matter: during construction, the applicant will comply with the following design features:
i. Construction equipment should be maintained in proper tune. ii. All construction vehicles should be prohibited from excessive idling. Excessive idling is defined as five (5) minutes or longer.
iii. Minimize the simultaneous operation of multiple construction equipment units, to the maximum extent feasible.
iv. Establish an electricity supply to the construction site and use electric powered equipment instead of diesel-powered equipment or generators, where feasible. v. Establish staging areas for the construction equipment that are as far from adjacent residential homes, as feasible.
vi. Use haul trucks with on-road engines instead of off-road engines for on-site hauling.
146. AIR-2 Prior to grading plan approval, the applicant/developer shall submit proof to the Planning Department that the project has complied with the San Joaquin Valley Air Pollution Control Indirect Source Rule (Rule 9510).
147. BIO-1 San Joaquin Kit Fox (Vulpes macrotis mutica): Prior to ground disturbance, a preconstruction survey must be conducted 14 - 30 days within the Project Area and a 500-foot buffer to identify active or potential San Joaquin kit fox dens. a. If potential kit fox dens are observed within the Project Area, a 50-foot avoidance buffer should be implemented. If construction activities require the destruction of a potential den, then den monitoring shall be conducted by a qualified biologist for a minimum of 4 consecutive nights following the protocols set forth in the U.S. Fish and Wildlife Service Standardized Recommendations for the Protection of the Endangered San Joaquin Kit Fox Prior to or During Ground Disturbance (USFWS 2011). Known dens shall require an avoidance buffer of at least 100 feet. If a known den cannot be avoided, it shall be left undisturbed, and the monitoring biologist shall be contacted immediately. Natal dens found within the Project Area or within a 500-foot-buffer

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19 surrounding the Project Area should be avoided and the USFWS and CDFW shall be contacted.
b. To prevent the entrapment of a San Joaquin kit fox or other wildlife, all steep walled, open trenches greater than 2 feet in depth should be covered at the end of each day. If covering an open excavation is not feasible, escape ramps made of earthen material or wooden planks at a 1:1- slope (45-degree angle) should be implemented. Trenches should be inspected in the morning prior to commencing work activities and prior to backfilling. If a San Joaquin kit fox or any other special-status species is found within the excavation, the monitoring biologist shall be contacted immediately. At no time should any personnel attempt to handle, corral, remove, or otherwise interact with the animal.
148. BIO-2 Swainson’s Hawk (Buteo swainsoni)
a. If construction activities are to take place during the nesting season (February - August), a preconstruction survey will be conducted 14 - 30 days prior to ground disturbing activities within the Project Area and a 500-foot buffer to identify individual and active nests. This survey can be conducted concurrently with the San Joaquin kit fox preconstruction survey described above, depending on the timing of the preconstruction survey. b. If any active Swainson’s hawk nest is found during the pre-construction survey, a qualified biologist will prescribe an appropriate buffer zone surrounding the nest and a plan to be implemented to prevent disruption of nesting activities. If nest disruption is not possible, CDFW should be contacted for guidance.
149. BIO-3 Tricolored blackbird (Agelaius tricolor)
a. If construction activities are to take place during the nesting season for tricolored blackbird (February - May), a preconstruction survey will be conducted 14 - 30 days prior to ground disturbing activities within the Project Area and a 500-foot buffer to identify individual tricolored blackbirds and active nests. This survey can be conducted concurrently with the San Joaquin kit fox pre-construction survey described above, depending on the timing of the preconstruction survey.
b. If any active tricolored blackbird nest sites are found during the pre-construction survey, a qualified biologist will prescribe an appropriate buffer zone surrounding the nest site and a plan to be implemented to prevent disruption of nesting activities. 150. BIO-4 Other Migratory Birds: Other migratory birds may use the proposed project site or surrounding lands for feeding, nesting, and roosting. In compliance with Sections 3503 and 3503.5 of the California Fish and Game Code and the Migratory Bird Treaty Act, if construction activities are to occur during the nesting and breeding season (February 1 through August 31), a qualified biologist shall determine the presence of any native bird and raptor nests prior to construction activities. If any nests are identified, appropriate buffer zones will be established around any identified nests to prevent disruption of nesting.

If an adequate buffer zone cannot be established around any active nest, CDFW and USFWS will be contacted for guidance.

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20 151. BIO-5 General Wildlife Avoidance Measures: To further ensure no special-status species are impacted by the project, the project will comply with the following general wildlife avoidance measures during the construction period.
a. All vehicles should implement a maximum 10mph speed limit within the Project Area or adhere to the posted speed limit.
b. To avoid the entrapment of any animal, all excavations greater than 2 feet should be backfilled by the end of day. If backfilling by the end of day is not possible, excavations should be covered in a way to prevent wildlife species from entering the excavation. If excavations cannot be covered, an earthen escape ramp or a ramp constructed of wooden planks should be implemented inside the excavation at a 1:1 slope (45 degrees). If any wildlife is found entrapped inside an open excavation, the biologist should be contacted immediately. All pipes, culverts, or similar structures staged onsite should be capped in a way to prevent the entry of wildlife. Such structures should be checked prior to moving to ensure no wildlife is entrapped inside. c. All food-related trash items including wrappers, cans, bottles, and scraps should be disposed of in a securely closed container and removed from the site at the end of each day.
d. No firearms or pets should be allowed onsite.
e. Any protected wildlife species that may venture onsite should be allowed to leave the site of their own accord. No attempt to handle or otherwise engage with the animal should be made. If after a reasonable amount of time the animal does not leave the project site, the biologist should be contacted.
152. CUL-1 If prehistoric or historic-era cultural materials are encountered during construction activities, all work in the immediate vicinity of the find shall halt until a qualified archaeologist can evaluate the find and make recommendations. Cultural resource materials may include prehistoric resources such as flaked and ground stone tools and debris, shell, bone, ceramics, and fire-affected rock as well as historic resources such as glass, metal, wood, brick, or structural remnants. If the qualified archaeologist determines that the discovery represents a potentially significant cultural resource, additional investigations may be required to mitigate adverse impacts from project implementation.

These additional studies may include avoidance, testing, and evaluation or data recovery excavation.
153. CUL-2 If human remains are discovered during construction or operational activities, further excavation or disturbance shall be prohibited pursuant to Section 7050.5 of the California Health and Safety Code. The specific protocol, guidelines, and channels of communication outlined by the Native American Heritage Commission, in accordance with Section 7050.5 of the Health and Safety Code, Section 5097.98 of the Public Resources Code (Chapter 1492, Statutes of 1982, Senate Bill 297), and Senate Bill 447 (Chapter 44, Statutes of 1987), shall be followed. Section 7050.5(c) shall guide the potential Native American involvement, in the event of discovery of human remains, at the direction of the county coroner.
154. CUL-3 If any paleontological resources are encountered during ground disturbance activities, all work within 25 feet of the find shall halt until a qualified paleontologist as defined by the Society of Vertebrate Paleontology Standard Procedures for the Assessment

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21 and Mitigation of Adverse Impacts to Paleontological Resources, can evaluate the find and make recommendations regarding treatment. Paleontological resource materials may include resources such as fossils, plant impressions, or animal tracks preserved in rock.

The qualified paleontologist shall contact the Natural History Museum of Los Angeles County or other appropriate facility regarding any discoveries of paleontological resources. 155. GEO-1 If any paleontological resources are encountered during ground disturbance activities, all work within 25 feet of the find shall halt until a qualified paleontologist as defined by the Society of Vertebrate Paleontology Standard Procedures for the Assessment and Mitigation of Adverse Impacts to Paleontological Resources, can evaluate the find and make recommendations regarding treatment. Paleontological resource materials may include resources such as fossils, plant impressions, or animal tracks preserved in rock.

The qualified paleontologist shall contact the Natural History Museum of Los Angeles County.
156. GHG-1 Prior to the issuance of building permits, the project will provide proof to the Planning Department that the project scores a minimum of 29 points using the San Joaquin Valley Air Pollution Control District (SJVAPCD) GHG Emission Reduction Best Performance Standard (BPS) Measures for Development Projects. 157. TRA-1 Prior to the issuance of any building permit, the Developer shall either pay or bond for 8.7% of the cost, as determined by the City Engineer, for a future traffic signal at the intersection of Shafter Avenue and E Los Angeles Avenue. Evidence of compliance shall be provided to the Planning Department for the record.

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MANAGEMENT REPORT

CITY OF SHAFTER

CITY COUNCIL REPORT
MEETING DATE: August 4, 2026
DEPARTMENT: Marco Martinez, City Attorney, Rachel Zermeno, Community Engagement Manager
SUBJECT: RESOLUTION APPROVING “GENERAL SHAFTER PARK” AS

THE NAME FOR THE COMMUNITY PARK LOCATED AT

FRESNO AVENUE AND CENTRAL VALLEY HIGHWAY

RECOMMENDATION
Council find that the action is not a “project” as defined by Section 15378(b)(5) of the CEQA Guidelines; and adopt Resolution 3107, a Resolution of the City Council of the City of Shafter approving "General Shafter Park" as the name for the community park located at Fresno Avenue and Central Valley Highway.

BACKGROUND
The North Shafter Park Project, located at Fresno Avenue and Central Valley Highway, began in 2020 following the City's successful award of a Proposition 68 grant, which was supported by extensive community outreach and engagement with North Shafter residents to identify the recreational amenities and park features most important to the neighborhood.

The park's design was developed to reflect the priorities and expectations expressed during that public engagement process. As the project advanced, the City Council authorized the use of local funds to expand the scope with additional improvements, including a pickleball court, off-site infrastructure improvements, and other amenities beyond those funded by the grant. Construction has progressed in phases as these enhancements were incorporated into the project. Upon completion, the park will provide a modern neighborhood park designed to serve the recreational needs of North Shafter residents and the broader community. The project is currently in its final stages, with completion anticipated in September 2026.

At the City Council meeting of July 16, 2026, the City Council considered options for naming the park, including the results of local engagement surveys of Shafter residents and Shafter youth providing recommendations for the name. After discussion, the Council directed that staff prepare a resolution officially naming the park as - “General Shafter Park.” The attached resolution would officially recognize the name and authorize the City Manager to take additional actions to implement that designation, including updating City records, maps, websites, and promotional materials, and taking any other administrative actions necessary to reflect the official park name.

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RESOLUTION APPROVING “GENERAL SHAFTER PARK” AS THE NAME FOR THE COMMUNITY

PARK LOCATED AT FRESNO AVENUE AND CENTRAL VALLEY HIGHWAY - 2 -

FISCAL IMPACT
The proposed action is expected to have a minimal fiscal impact. Costs associated with officially designating the facility as “General Shafter Park” may include new park signage and minor updates to City maps, records, websites, promotional materials, and other public information.

Because the park remains under construction, staff anticipates that the official name can be incorporated into planned project signage and materials before completion, thereby minimizing the need to replace existing items. Any associated costs are expected to be absorbed within the existing North Shafter Park Project budget or applicable departmental operating budgets. No additional General Fund appropriation is requested at this time.

CEQA ANALYSIS
The action is not a “project” as defined by Section 15378(b)(5) of the CEQA Guidelines because it is the approval of a name for a community park, which is an organizational or administrative activity that will not result in direct or indirect physical changes to the environment.

APPROVED BY THE CITY ATTORNEY
Yes

ATTACHMENTS

1. Resolution No. 3107

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RESOLUTION NO. 3107

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SHAFTER APPROVING “GENERAL SHAFTER PARK” AS THE NAME FOR THE

COMMUNITY PARK LOCATED AT FRESNO AVENUE AND CENTRAL

VALLEY HIGHWAY
WHEREAS, the City of Shafter, California (“City”) is a municipal corporation, duly organized as a Charter City under the constitution and laws of the State of California; and WHEREAS, the City of Shafter has developed a new community park located at the corner of Fresno Avenue and Central Valley Highway to serve residents of all ages and provide expanded recreational opportunities for the community; and
WHEREAS, on June 2, 2026, the City Council directed City staff to solicit park name suggestions directly from the community rather than forming a committee to suggest park names; and
WHEREAS, in response to the City Council's direction, City staff conducted a comprehensive community engagement campaign through the City's social media platforms, including a reel video, graphic posts, and Instagram and Facebook stories, inviting residents to provide input on appropriate park names; and
WHEREAS, through this outreach effort, City staff received more than 450 park name suggestions from members of the community; and
WHEREAS, to ensure the voices of Shafter's youth were represented, City staff also collected name suggestions during three Shafter Recreation Park Takeover events and partnered with the Shafter Library and Learning Center to engage children in the naming process, resulting in more than 50 additional submissions; and
WHEREAS, review of the submissions revealed a strong community preference for names that reflect the City's identity, history, agricultural heritage, military tradition, and strong sense of community, with many residents specifically expressing support for names honoring General William Rufus Shafter and the City's historic origins; and WHEREAS, the City Council finds that naming the park "General Shafter Park" appropriately recognizes the historical namesake of the City of Shafter while honoring the community's expressed desire for a name that celebrates the City's heritage, fosters civic pride, and provides a lasting identity for this important public gathering place; and WHEREAS, the City Council further finds that the name "General Shafter Park" is in the best interests of the City and its residents and will serve as a meaningful and enduring symbol of the community's history and identity.

NOW, THEREFORE BE IT RESOLVED AS FOLLOWS:

SECTION 1. The foregoing recitals are true and correct and are incorporated herein by this reference as though fully set forth.

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Shafter City Council Resolution No. 3107
August 4, 2026

Page 2 ends

SECTION 2. The City Council of the City of Shafter (“City Council”) hereby officially names the community park located at the corner of Fresno Avenue and Central Valley Highway as "General Shafter Park."
SECTION 3. The City Council hereby authorizes and directs the City Manager, or the City Manager's designee, to take all actions necessary to implement this Resolution, including, but not limited to, installing appropriate park signage, updating City records, maps, websites, and promotional materials, and taking any other administrative actions necessary to reflect the official park name.

SECTION 4. This Resolution shall take effect immediately upon its adoption.

PASSED, APPROVED AND ADOPTED 4th day of August, 2026
_____________________________
Chad Givens, Mayor

ATTEST:
_____________________________
Yazmina Pallares, City Clerk
APPROVED AS TO FORM:
______________________________
Marco A. Martinez, City Attorney

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MANAGEMENT REPORT

CITY OF SHAFTER

CITY COUNCIL REPORT
MEETING DATE: August 4, 2026
DEPARTMENT: Rogelio Sanchez, Finance Director, Randy Milligan, Police Chief, Isarel Perez-Hernandez, CMT, Deputy Finance Director
SUBJECT: CALIFORNIA HIGHWAY PATROL CANNABIS TAX FUND GRANT

PROGRAM AGREEMENT AND ACCEPT A GRANT AWARD IN
THE AMOUNT OF $298,500

RECOMMENDATION
Council find the action is not a “project” as defined by Section 15378(b)(4) of the CEQA Guidelines; adopt Resolution 3108, a Resolution of the City Council ofhte City of Shafter authorizing the City Manager to execute the California Highway Patrol Cannabis Tax Fund Grant Program Agreement; and accept a grant award in the amount of $298,500 for fiscal year 2026-2027 Impaired Driving Enforcement and Public Education Activities.

BACKGROUND
The California Highway Patrol administers the Cannabis Tax Fund Grant Program to provide competitive funding to local law enforcement agencies for projects that reduce impaired driving through enforcement, education, and prevention. The program is funded through revenues generated by California's cannabis excise tax and is intended to improve roadway safety throughout the state.

Earlier this year, the California Highway Patrol released the Fiscal Year 2026–2027 funding opportunity with an application deadline approximately one week after its announcement. Recognizing both the competitive nature of the program and the limited window available, staff acted quickly to preserve the opportunity to compete for state funding by submitting a complete application before the deadline. Submission of the application did not obligate the City to accept an award or execute a Grant Agreement.

Preparing a competitive proposal within such a compressed timeframe required close collaboration between the Police Department and Finance Department. The Police Department leadership contributed operational expertise, enforcement strategies, statistical data, and knowledge of local public safety priorities. The Finance Department coordinated grant research, project development, budget preparation, performance measure development, compliance review, and application submission.

This partnership produced a proposal strong enough to earn the City the full grant award of $298,500 which is an outcome that reflects both the credibility of the City's

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CALIFORNIA HIGHWAY PATROL CANNABIS TAX FUND GRANT PROGRAM AGREEMENT AND ACCEPT A GRANT AWARD IN THE AMOUNT OF $298,500
- 2 -
public safety data and the quality of the proposal developed under a demanding deadline.

DISCUSSION
Community Context and Public Safety Need
The City of Shafter continues to experience significant residential growth that has expanded the geographic footprint of public safety services and increased demands on the Police Department. The California Department of Finance has identified Shafter as one of the fastest-growing cities in California, with substantial residential development ongoing in the Gossamer Grove community located approximately 25 minutes from the historic downtown core.

As new neighborhoods develop and population grows, traffic volumes and roadway exposure increase throughout the City. The Police Department is simultaneously managing public safety demands across the downtown core, emerging residential corridors, and major regional travel routes, including the 7th Standard Road and near State Route 99. A high-traffic corridor serving residents, commuters, and commercial traffic.

Over the past several years, the Police Department has documented consistent DUI enforcement activity and collision data that demonstrate the ongoing need for proactive impaired driving resources.

A Proactive, Intelligence-Led Enforcement Strategy
Rather than pursuing a reactive enforcement model, the approved project is built around a strategic, intelligence-led approach to impaired driving prevention. Grantfunded enforcement activities will be deliberately concentrated during periods historically associated with elevated impaired driving risk.

Specifically, DUI saturation patrols will be strategically scheduled around:
• Friday and Saturday evenings, which consistently produce the highest impaired driving activity
• Holiday weekends, Cinco de Mayo, fourth of July, Thanksgiving, Christmas, and New Year's
• Graduation season and school-related events that historically generate increased alcohol and cannabis consumption
• Football games, community celebrations, and large public gatherings that draw significant traffic volumes into the community

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CALIFORNIA HIGHWAY PATROL CANNABIS TAX FUND GRANT PROGRAM AGREEMENT AND ACCEPT A GRANT AWARD IN THE AMOUNT OF $298,500
- 3 -
The approved project will fund:

Category Amount
Personnel – 42 DUI Saturation Patrols $201,183.36
Personnel – 1 DUI Sobriety Checkpoint $11,434.40
Equipment – 2 Portable Message Board Trailers $63,902.36 Project Administration and Reporting $20,280.00
Educational Outreach / Prevention Materials $1,699.88
Total Grant Award $298,500.00
The 42 approved DUI saturation patrols will be deployed on a quarterly schedule throughout the performance period (July 1, 2026 through June 30, 2027), with patrols concentrated in alignment with seasonal enforcement priorities and community event calendars.

Public Education and Community Awareness
The two portable speed/message board trailers included in the project serve a critical dual function. During active DUI enforcement operations, the boards will notify motorists of enforcement in progress, increasing public awareness and encouraging voluntary compliance. Between enforcement events, the boards will rotate through downtown Shafter and 7th Standard Gossamer Grove area displaying impaired driving prevention messages focused on the dangers and legal consequences of driving under the influence of alcohol and cannabis.

Enforcement Capacity
The Shafter Police Department enters this grant period with a well-trained DUI enforcement foundation. The Department currently has 27 officers certified in Standardized Field Sobriety Testing (SFST), 14 officers certified in Advanced Roadside Impaired Driving Enforcement (ARIDE), and one Drug Recognition Expert (DRE). This existing training capacity ensures the Department is fully equipped to implement the approved grant activities immediately upon execution of the Grant Agreement.

FISCAL IMPACT
The approved project is a 100% grant funded through the California Highway Patrol Cannabis Tax Fund Grant Program. The City has been awarded $298,500with no local matching funds and no General Fund appropriations necessary to implement the project.

This award provides direct relief to the general fund by funding impaired driving enforcement, public education, and equipment.

CEQA ANALYSIS

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CALIFORNIA HIGHWAY PATROL CANNABIS TAX FUND GRANT PROGRAM AGREEMENT AND ACCEPT A GRANT AWARD IN THE AMOUNT OF $298,500
- 4 -
The action is not a “project” as defined by Section 15378(b)(4) of the CEQA Guidelines because it involves the approval of Tax Fund Grant Program Agreement in the amount of $298,500 to be used to fund DUI saturation patrols, DUI checkpoints, message trailers, administration, and outreach. The action constitutes a governmental fiscal activity that does not commit funds to a specific project with the potential to result in a significant environmental impact

APPROVED BY THE CITY ATTORNEY
No

ATTACHMENTS

1. Resolution No. 3108

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RESOLUTION NO. 3108

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SHAFTER

AUTHORIZING THE CITY MANAGER TO EXECUTE THE CALIFORNIA

HIGHWAY PATROL CANNABIS TAX FUND GRANT PROGRAM AGREEMENT AND ACCEPTING A GRANT AWARD IN THE AMOUNT OF $298,500 FOR FISCAL YEAR 2026–2027 IMPAIRED DRIVING ENFORCEMENT AND PUBLIC EDUCATION

ACTIVITIES
WHEREAS, the California Highway Patrol (CHP) administers the Cannabis Tax Fund Grant Program (CTFGP) to provide competitive funding to local law enforcement agencies for projects that reduce impaired driving through enforcement, education, and prevention, funded through revenues generated by California's cannabis excise tax pursuant to Revenue and Taxation Code Section 34019(f)(3)(B); and
WHEREAS, the City of Shafter, through the collaborative efforts of the Police Department and Finance Department, submitted a competitive application to the California Highway Patrol Cannabis Tax Fund Grant Program for Fiscal Year 2026–2027 within the prescribed application period; and
WHEREAS, the California Highway Patrol has awarded the City of Shafter a grant in the amount of $298,500 under the Cannabis Tax Fund Grant Program for the project performance period of July 1, 2026 through June 30, 2027; and
WHEREAS, the approved grant will fund 42 DUI saturation patrols, one DUI sobriety checkpoint, two portable speed/message board trailers, public education and impaired driving prevention activities, and grant administration and quarterly reporting; and WHEREAS, grant-funded activities will be strategically deployed during periods historically associated with elevated impaired driving risk, including Friday and Saturday evenings, holiday weekends, graduation season, and community gatherings, to maximize deterrence and public safety impact throughout the City; and
WHEREAS, the California Highway Patrol has awarded the City of Shafter a grant in the amount of $298,500 under the Cannabis Tax Fund Grant Program for the project performance period of July 1, 2026 through June 30, 2027; and
WHEREAS, the City of Shafter's Police Department currently maintains a well-trained DUI enforcement foundation, including officers certified in Standardized Field Sobriety Testing (SFST), Advanced Roadside Impaired Driving Enforcement (ARIDE), and a Drug Recognition Expert (DRE), positioning the Department to implement grant-funded activities immediately upon execution of the Grant Agreement; and
WHEREAS, the grant award requires no local matching funds and no General Fund appropriations, providing direct fiscal relief to the City while expanding the scope of public safety services delivered to the community; and

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Shafter City Council Resolution No. 3108
August 4, 2026

Page 2 ends

WHEREAS, the California Highway Patrol requires the City to submit a governing body resolution authorizing acceptance of grant funding and execution of the Grant Agreement prior to the execution of said Agreement;
NOW THEREFORE BE IT RESOLVED, DETERMINED AND ORDERED by the City Council of the City of Shafter, California, that the City Manager and Administrative Services Director of the City of Shafter is hereby authorized to:

SECTION 1: The City Council hereby accepts the California Highway Patrol Cannabis Tax Fund Grant Program award in the amount of $298,500 for the Fiscal Year 2026–2027 project performance period of July 1, 2026 through June 30, 2027.

SECTION 2: The City Manager, or designee, is hereby authorized and directed to execute the California Highway Patrol Cannabis Tax Fund Grant Program Agreement, and any amendments, modifications, or related documents necessary to implement the approved project, on behalf of the City of Shafter.

SECTION 3: The Finance Department is hereby authorized to establish the necessary budget appropriations, accounting records, and reimbursement procedures required to administer grant funds in accordance with the terms and conditions of the executed Grant Agreement.

SECTION 4: Staff is directed to implement the approved project in coordination with the Police Department and to comply with all grant performance, reporting, and compliance requirements throughout the project performance period.

SECTION 5: This Resolution shall take effect immediately upon its adoption.

PASSED, APPROVED AND ADOPTED 4th day of August, 2026
_____________________________
Chad Givens, Mayor

ATTEST:
_____________________________
Yazmina Pallares, City Clerk
APPROVED AS TO FORM:
______________________________
Marco A. Martinez, City Attorney

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Shafter City CouncilAugust 4, 2026

Shafter City Council
August 4, 2026