Agenda packet — Tulare City Council, June 2, 2026 (part 1 of 3)

City of Tulare Page 1 of 5
City Council Meeting Notice & Agenda
Tuesday, June 2, 2026 - 5:30 p.m. Regular Meeting
City Council Chamber, 491 North M Street, Tulare, CA 93274 www.tulare.ca.gov
Mission Statement
To promote a quality of life making Tulare the most desirable community in which to live, learn, play, work, worship and prosper.

Regular City Council meetings are held on the first and third Tuesdays of each month at the Council Chamber, located inside the Tulare Public Library, 491 North M Street, Tulare. Meetings are subject to cancellation. Additional meetings may be scheduled as needed.

City Council meetings are open to the public at the physical address listed above. You may attend these meetings in person or remotely through the City’s official remote platform as described below.

Members of the public may address the City Council on matters within the jurisdiction of the City of Tulare.

Those wishing to speak are encouraged to complete a Public Comment Card and submit it to the City Clerk prior to the start of the meeting. You may also submit written comments via e-mail to [email protected]. Please include your name and reference the agenda item you are commenting on, if any. Written comments received that do not specify an agenda item will be marked for the Public Comment section of the agenda. Emails received by noon on the date of the meeting will be provided to the City Council at the meeting and made part of the record of proceedings but will not be read aloud.

Comments by the public are limited to three minutes per speaker, unless otherwise extended by the Council. At the start of any agenda item, the mayor may limit the number of speakers or the time allotted per comment, depending on the number of participants and length of the agenda. When called upon to speak, begin by stating your name and city of residence.

Meeting agendas and related documents are available at www.tulare.ca.gov/agendas. Copies are also available for public inspection at the City Clerk’s Office, City Hall, 411 E. Kern Avenue, Second Floor, during regular business hours.

Individuals who require accommodations, auxiliary aids, or services necessary to participate in this meeting should contact the City Clerk's Office at (559) 684-4200 or [email protected]. The e-mail subject line should read "ADA Accommodation Request" or "Language Assistance" and the e-mail should include your name, address, telephone number, and a description of the request.

Remote Participation
Link to Join: https://bit.ly/3OE8hfz
Telephone Number: (669) 900-6833
Meeting ID: 810 7902 3401
Persons attending the meeting remotely will have the opportunity to provide comments at the appropriate times during the meeting. To speak during a public comment period, press *9 on your phone to raise your hand or click “Raise Hand” in the webinar. At the appropriate time, you will be prompted to unmute yourself and asked to identify yourself when providing public comment.

City Councilmembers
Patrick Isherwood, Mayor
Steve Harrell, Vice Mayor
Jose Sigala
Terry A. Sayre
Dennis A. Mederos
City Council Meeting Agenda Tuesday, June 2, 2026
City of Tulare Page 2 of 5

1. CALL TO ORDER

2. PLEDGE OF ALLEGIANCE AND INVOCATION - John Maher, Pastor of Calvary Chapel Tulare, to deliver an invocation.

3. PROCLAMATIONS & RECOGNITIONS

3.1 Resolution of Remembrance for Flora Johnson.

3.2 Proclamation for National Salvation Army Week, May 11-17, 2026.

3.3 Proclamation for LGBTQ Pride Month, June 2026.

3.4 Proclamation for National Dairy Month, June 2026.

4. PUBLIC COMMENT - Members of the public wishing to comment on any item not appearing on the agenda may address the City Council at this time. State law prevents Council from acting on any matter not on the agenda; however, your comments may be referred to staff for follow up. This is also the time for the public to comment on items listed under the Consent Calendar or to request an item from the Consent Calendar be pulled for discussion purposes. Comments related to Public Hearing and General Business items will be heard at the time those items are discussed. In fairness to all who wish to speak, public comment is limited to a total of fifteen minutes with each speaker allowed three minutes, unless otherwise extended by Council. Please begin your comments by stating your name and providing your city of residence. For those that wish to provide public comment while attending the meeting remotely, press *9 on your phone to raise your hand or click “Raise Hand” in the webinar.

5. PRESENTATIONS

5.1 Update on the HWY 99 Widening/Paige Interchange Project by Caltrans.

5.2 Update on the Tulare Mail Theft Case by the Tulare Police Department.

6. COMMUNICATIONS - Communications are to be submitted to the City Manager’s Office ten days prior to a Council meeting to be considered for this section of the agenda. No action will be taken on matters listed under Communications; however, the Council may direct staff to schedule issues raised during Communications for a future meeting.

7. COUNCIL REPORTS AND ITEMS OF INTEREST

8. CONSENT CALENDAR - All matters listed under the Consent Calendar are considered by the Council to be routine and will be enacted in one motion without discussion. If discussion is desired, that item may be removed and considered separately.

8.1 Waive the reading of ordinances and approve reading by title only.

Recommended Action: Approve the reading by title only of all ordinances and that further reading of such ordinances by waived.

8.2 Approval of City Council Meeting Minutes.

Recommended Action: Approve the minutes of the special and/or regular meeting of May 19, 2026. [M. Wilcox]

8.3 California League of City Employees Association Side Letter of Agreement No. 2.

Recommended Action: Adopt a resolution approving and authorizing the execution of Side Letter of Agreement No. 2 between the City of Tulare and California League of City Employees City Council Meeting Agenda Tuesday, June 2, 2026
City of Tulare Page 3 of 5
Association (CLOCEA) clarifying revisions to Memorandum of Understanding (MOU) for the term of July 1, 2024 through June 30, 2027 adopted October 15, 2024. [J. Vanegas]

8.4 Downtown Tulare PBID Summary Report.

8.5 Project Delivery Schedule for EN0097 International Agri Center Way Extension.

8.6 Cooling & Heating Resilience Center Relocation.

Recommended Action: Authorize the relocation of the Cooling & Heating Resilience Center from Prosperity Sports Park (PSP) to the Tulare Public Library. [M. Ott]

8.7 Award Purchase of Night Vision Goggles.

8.8 Award Contracts for EN0098 Various Streets Northeast of Dayton and Tulare.

Recommended Action: [M. Miller] Award and authorize the City Manager to sign contracts related to construction of CIP Project EN0098 Various Streets Northeast of Dayton and Tulare; and authorize the City Manager or designee to approve contract change orders in an amount not to exceed 10% of each contract amount.

Task Description Contractor Amount

1. Construction Contractor 99 Pipeline of Porterville, CA $7,268,707.60

2. Inspection 4 Creeks of Visalia, CA $618,660.00

3. Materials Testing Krazan of Clovis, CA $120,220.00

4. Surveying Lane Engineers of Tulare, CA $149,400.00

5. Labor Compliance Labor Consultants of California of
Hanford, CA
$30,600.00

8.9 Approve Program Guidelines for HOME Investment Partnerships Program Activities.

8.10 Acceptance and Appropriation of 2024 CalHome Program Grant.

9. PUBLIC HEARING - Comments related to Public Hearing items are limited to three minutes per speaker, for a maximum of thirty minutes per item, unless otherwise extended by Council. For those that wish to provide public comment while attending the meeting remotely, press *9 on your phone to raise your hand or click “Raise Hand” in the webinar.

City Council Meeting Agenda Tuesday, June 2, 2026
City of Tulare Page 4 of 5

9.1 Active Transportation Plan Adoption.

Recommended Action: Approve a resolution adopting the City of Tulare 2026 Active Transportation Plan. [S. Sopp]

10. GENERAL BUSINESS - Comments related to General Business items are limited to three minutes per speaker, for a maximum of thirty minutes per item, unless otherwise extended by Council. For those that wish to provide public comment while attending the meeting remotely, press *9 on your phone to raise your hand or click “Raise Hand” in the webinar.

10.1 Actions Related to the 2026 Municipal General Election.

10.2 Adoption of City of Tulare Fiscal Year 2027 Operating Budget.

11. FUTURE AGENDA ITEMS - NONE SUBMITTED

12. STAFF UPDATES

13. RECESS TO CLOSED SESSION TO DISCUSS THE FOLLOWING

13.1 Conference with Real Property Negotiations (Gov. Code § 54956.8) Property: 1370 South O Street (APN 181-070-062)
Agency Negotiators: Assistant City Manager Gaffery
Negotiating Parties: Unknown
Under Negotiation: Price and terms of payment

13.2 Conference with Legal Counsel - Anticipated Litigation Initiation of litigation pursuant to Gov. Code § 54956.9(d)(4): 2 cases

14. RECONVENE FROM CLOSED SESSION

15. CLOSED SESSION REPORT - This is the time for Council to publicly report specified closed session action and the vote taken on those actions, if any.

16. ADJOURNMENT
City Council Meeting Agenda Tuesday, June 2, 2026
City of Tulare Page 5 of 5
The next regularly scheduled meeting of the Tulare City Council is Tuesday, June 16, 2026, at 5:30 p.m. in the Council Chamber, 491 North M Street, Tulare.

AFFIDAVIT OF POSTING AGENDA
I, Melissa Wilcox, hereby certify, in conformance with Government Code Sections 54954.2, that the foregoing agenda was posted for public review on Friday, May 29, 2026.

Melissa Wilcox, CMC, CPMC
Chief Deputy City Clerk
Office of the City Manager
411 East Kern, Tulare, CA 93274
559.684.4200 | www.tulare.ca.gov
To: Mayor and City Councilmembers
From: Marc Mondell, City Manager
Subject: June 2, 2026 Agenda Memo
Date: May 29, 2026
Time estimates are provided as part of the Council’s effort to manage its time at Council meetings. Listed times are estimates only and are subject to change at any time, including while the meeting is in progress.

The Council, by consensus, reserves the right to use more or less time on any item, to change the order of items, and/or to continue items to another meeting. Items may be heard before or after the time estimated on the agenda memo. This may occur to best manage the time at a meeting or to adapt to the participation of the public.
5:30 p.m. Regular Meeting

1. CALL TO ORDER

2. PLEDGE OF ALLEGIANCE AND INVOCATION - John Maher, Pastor of Calvary Chapel Tulare, to deliver an invocation.

3. PROCLAMATIONS & RECOGNITIONS [Time Estimate: 5:35 p.m.]

3.1 Resolution of Remembrance for Flora Johnson.

3.2 Proclamation for National Salvation Army Week, May 11-17, 2026.

3.3 Proclamation for LGBTQ Pride Month, June 2026.

3.4 Proclamation for National Dairy Month, June 2026.

5. PRESENTATIONS [Time Estimate: 6:05 p.m.]

5.1 Update on the HWY 99 Widening/Paige Interchange Project by Caltrans.

5.2 Update on the Tulare Mail Theft Case by the Tulare Police Department.

6. COMMUNICATIONS - Communications are to be submitted to the City Manager’s Office ten days prior to a Council Meeting to be considered for this section of the agenda. No action will be taken on matters listed under communications; however, the Council may direct staff to schedule issues raised during Tulare City Council Meeting Page 2 of 18
Agenda Memo - June 2, 2026
communications for a future agenda. Public comments will be limited to three minutes per topic unless otherwise extended by Council. [Time Estimate: 6:40 p.m.]

7. COUNCIL REPORTS AND ITEMS OF INTEREST [Time Estimate: 6:40 p.m.]

8.1 Waive the reading of ordinances and approve reading by title only.

Recommended Action: Approve the reading by title only of all ordinances and that further reading of such ordinances be waived.

8.2 Approval of City Council Meeting Minutes.

Recommended Action: Approve the minutes of the special and/or regular meeting of May 19, 2026. [M. Wilcox]

8.3 California League of City Employees Association Side Letter of Agreement No. 2.

Recommended Action: Adopt a resolution approving and authorizing the execution of Side Letter of Agreement No. 2 between the City of Tulare and California League of City Employees Association (CLOCEA) clarifying revisions to Memorandum of Understanding (MOU) for the term of July 1, 2024 through June 30, 2027 adopted October 15, 2024. [J. Vanegas] Summary: The City and CLOCEA met and conferred regarding amendments to the current MOU. The proposed Side Letter of Agreement No. 2 clarifies several provisions within the current MOU and the City’s Merit System Rules and Regulations. The revisions address scheduling practices, overtime administration, holiday compensation provisions, and certification pay eligibility.

The proposed revisions are intended to improve administrative consistency, operational efficiency, payroll administration and clarity in application of MOU provisions.

Key revisions include:
1) Clarify standard work periods and designated work weeks for employees and transitions the Library to the standard citywide Saturday through Friday schedule. 2) Formalize existing alternative work schedules for certain operational divisions, including Water, Streets, Sewer Collection, Storm Drain, and Wastewater Operations. 3) Clarify the City’s authority and notice requirements regarding schedule and shift modifications.
4) Update and clarify scheduled and unscheduled overtime provisions for Public Safety Dispatch employees.
5) Revise holiday provisions to ensure hours applied to correct leaves bank 6) Add a holiday in lieu benefit for Public Safety Dispatch employees by changing the benefit from holiday hours credited to a leave bank to an automatic cash payout twice annually
7) A one-time 12-hour payout for eligible Public Safety Dispatch employees following ratification of agreement.
8) Add the Cross Connection Specialist classification to the list of classifications eligible for Certification Pay.

Fiscal Impact & Funding Source(s): Funding for this Side Letter will be included in the Fiscal Year 2027 general fund budget and will be accounted for in subsequent years as part of the development process. The one-time payout provision is approximately $4,500, which is manageable within the existing Police Department budget.

Tulare City Council Meeting Page 3 of 18
Agenda Memo - June 2, 2026
Environmental Review: This action does not constitute a “project” pursuant to California Environmental Quality Act (CEQA).

Potential Conflict of Interest: Staff is not aware of any conflicts of interest.

Legal Review: This item does not require legal review.

Public Notice: This item does not require a public hearing and was noticed as part of the agenda.

Alternative Action: 1) Approve with changes; 2) Deny; or 3) Table.

8.4 Downtown Tulare PBID Summary Report.

Recommended Action: Receive the Summary Report of the Formation and Engagement Activities of a Downtown Property Based Business Improvement District (PBID) with no further action recommended at this time. [J. Gomez]
Summary: In 2023, the City of Tulare engaged services with NBS and CivicMic to support the formation of a Downtown Property Based Business Improvement District (PBID). Efforts included stakeholder engagement activities with multiple revisions for the proposed framework of the PBID including district boundaries, budget, and types of services provided. NBS provided technical assistance with the legally required methodology to calculate the assessment rates, prepared Engineer’s Reports, and mailed Petitions to the property owners.

In 2025, City management removed itself from the process after the initial engineer’s report was completed due to complaints that the City was too involved and may try to influence the outcome. A PBID Committee was thus formed consisting primarily of downtown property owners, along with representatives from the Tulare Downtown Association and Tulare Chamber of Commerce, Economic Development staff, and Mayor Isherwood. Through ongoing outreach, the committee members received feedback from stakeholders which led to the final revision and petition mailed in March 2026.

This last effort resulted with 23.89% in favor of the formation and 29.1% in opposition with the balance of petitioners not responding. To move forward to the formal ballot phase, a 50% plus 1 needed to be achieved in favor of the PBID. Since this failed, no further action is to be taken and the PBID will not be formed.

Without the establishment of a PBID, the level of maintenance in downtown will likely continue to decline due to the probable increase in cost of providing services and the legal inability of the City to divert revenues received for citywide services into the downtown area specifically.

While there is general support by the property owners to form a PBID, in order to make improvements to the downtown, the costs associated with these services are not supported by a majority of the property owners at this time with their primary focus on individual benefits rather than the downtown as a whole. This mentality will likely shift as new owners look to invest in the downtown to transition from being stagnant to a more vibrant destination.

Without the financial benefits of a PBID to maintain or improve the downtown, some of the downtown property and business owners are looking to collaborate further to form an independent organization to support initiatives such as a Main Street America program that utilizes a grassroots approach to market downtowns and enhance physical elements such as landscaping and lighting. City staff fully supports these ongoing efforts led by the private sector to revitalize the downtown.

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Agenda Memo - June 2, 2026
It is, therefore, management’s recommendation that the City not further support the establishment of a PBID unless it is requested by the property owners.

Fiscal Impact & Funding Source(s): There is no fiscal impact associated with this action.

Environmental Review: This action does not constitute a “project” pursuant to California Environmental Quality Act (CEQA).

Potential Conflict of Interest: Staff is not aware of any conflicts of interest.

Legal Review: This item does not require legal review.

Public Notice: This item does not require a public hearing and was noticed as part of the agenda.

Alternative Action: 1) Approve with changes; 2) Deny; or 3) Table.

8.5 Project Delivery Schedule for EN0097 International Agri Center Way Extension.

Recommended Action: Receive and file the project delivery schedule for capital improvement project EN0097 International Agri-Center Way Extension, and direct staff to circulate to project stakeholders. [M. Miller]
Summary: CIP Project EN0097 is a street construction project to extend International AgriCenter Way between Laspjna Street and Turner Drive, and includes the installation of master plan water and sewer infrastructure within the roadway. The project will improve traffic circulation in the southern portion of Tulare by providing a direct connection between the newly constructed International Agri-Center Way interchange on Highway 99 and the Turner Drive/Mooney Boulevard corridor, with traffic signal improvements at the intersection of International Agri-Center Way and Laspina Street. The new roadway connection and utility improvements will also facilitate the planned expansion of the International Agri-Center facilities, and the pending development of other adjacent properties.

Council and other project stakeholders have routinely requested updates on the status of the project. Working with both the design and environmental consultants assigned to the project, staff has developed the attached project delivery schedule. This schedule represents an aggressive, but realistic, approach to completing the project well within the delivery timelines required by the project’s federal funding appropriation. Staff seeks Council’s concurrence with the schedule presented, which would then be shared with the various project stakeholders to both provide assurance that the project is advancing, and to provide affected landowners with notice of approaching milestones requiring action on their part.

Fiscal Impact & Funding Source(s): The following funding sources are being utilized for CIP Project EN0097:
• 230 – Streets DIF Fund
• 225 – Water Supply Fac. DIF Fund
• 226 – Wastewater Treatment Fac. DIF Fund
• 301 – Measure R Fund
• 330 – Other Grants (Federal Earmark)
Environmental Review: This action does not constitute a “project” pursuant to California Environmental Quality Act (CEQA).

Potential Conflict of Interest: Staff is not aware of any conflicts of interest.

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Agenda Memo - June 2, 2026
Legal Review: This item does not require legal review.

Public Notice: This item does not require a public hearing and was noticed as part of the agenda.

Alternative Action: 1) Approve with changes - Staff would incorporate changes directed by Council into the project schedule; 2) Deny; or 3) Table.

8.6 Cooling & Heating Resilience Center Relocation.

Recommended Action: Authorize the relocation of the Cooling & Heating Resilience Center from Prosperity Sports Park (PSP) to the Tulare Public Library. [M. Ott] Summary: The Cooling & Heating Resilience Center has primarily been located at the PSP Clubhouse since 2022. Prior to that, the program operated at several locations throughout the community, including the Meitzenheimer Community Center, the Tulare Public Library, Senior Community Center, and the Hillman Health Center. In 2024, the City also placed retired City buses at the Tulare C.A.R.E.S. Encampment to provide a centrally located Cooling & Heating Resilience Center for individuals staying at the encampment, reducing the need for those individuals to travel across town to the PSP Clubhouse.

Under the current policy, the cooling center activates when temperatures are forecasted to exceed >103 degrees, while the heating center activates when temperatures are expected to fall below <29 degrees. Data collected from 2022 through 2025 shows the center has been activated a total of 62 times, with approximately 18 individuals utilizing the service over the program’s four years of operation. While the fiscal impact has remained relatively low, total operational costs were approximately $15,500.00 over the four-year period, averaging approximately $250.00 per activation.

Despite the intent of the program to protect vulnerable populations during extreme weather events, utilization of the PSP Clubhouse location has remained extremely low. Over the past four years, fewer than 20 individuals have utilized the cooling and heating center services at PSP. With the permanent Tulare Homeless Shelter, which will provide a climate-controlled environment, scheduled to open in June 2026, continuing to operate the PSP Clubhouse as a Cooling & Heating Resilience Center for homeless individuals appears to be an inefficient use of staff time and taxpayer funding.

Current operating hours are Tuesday, Wednesday, and Friday from 10:00 a.m. to 6:00 p.m., Thursday from 10:00 a.m. to 8:00 p.m., and Saturday from 10:00 a.m. to 5:00 p.m. On days the library is closed, and temperatures reach the established activation thresholds, the lobby area and restroom facilities could remain open from 3:00 p.m. to 7:00 p.m. to continue providing public access to a safe environment during extreme weather conditions.

Relocating the Cooling & Heating Resilience Center operations from the PSP Clubhouse to the Tulare Public Library would improve accessibility, increase visibility and public awareness, better utilize existing City resources, and provide a more centralized and effective service model for residents in need during periods of extreme heat or cold.

Tulare City Council Meeting Page 6 of 18
Agenda Memo - June 2, 2026
Furthermore, transitioning the Cooling & Heating Resilience Center operations to the Tulare Public Library may position the City to pursue future grant funding opportunities through the California Strategic Growth Council’s “Community Resilience Centers Program”. This program supports the development and enhancement of community-serving facilities that provide critical resources and safe refuge during climate-related emergencies and extreme weather events. By utilizing an existing centrally located public facility that already serves vulnerable populations, the City may become more competitive for grant funding opportunities related to resilience improvements, backup power systems, energy efficiency upgrades, emergency preparedness enhancements, public health protections, and expanded community services during disasters and extreme weather conditions.

Fiscal Impact & Funding Source(s): There is no fiscal impact associated with this action.

Environmental Review: This action does not constitute a “project” pursuant to California Environmental Quality Act (CEQA).

Potential Conflict of Interest: Staff is not aware of any conflicts of interest.

Legal Review: This item does not require legal review.

Public Notice: This item does not require a public hearing and was noticed as part of the agenda.

Alternative Action: 1) Approve with changes; 2) Deny; or 3) Table.

8.7 Award Purchase of Night Vision Goggles.

Recommended Action: Award the purchase of specialized night operations equipment from Black Box Safety Company under the League of Oregon Cities Cooperative Purchasing Agreement (RFP #2530) in the amount of $95,807.18, plus applicable freight costs, if required. [R. Guerrero]
Summary: The equipment requested would significantly improve SWAT Operators' safety, tactical effectiveness, and decision-making in darkness or low-light conditions. The AN/PVS-14 monocular provides enhanced night vision capability, allowing officers to move, search, and identify suspects in conditions where normal vision is limited. The Wilcox G24 helmet mount provides secure mounting of the NVG. The Steiner DBAL A3 provides visible and infrared aiming and illumination capability, improving target identification and coordination during authorized operations.

Staff identified a cooperative purchasing contract awarded through the League of Oregon Cities (RFP #2530) and determined that procurement through this agreement is consistent with the City's Purchasing Policy. Additionally, staff obtained multiple vendor quotes to compare pricing and equipment packages. The results are summarized below:

Vendor Night Vision
Units
Laser
Units
Mount/Shroud
Included
Helmets
Included Shipping Total
Black Box Safety
Company
14 Photonis

ECHO WP
PVS-14
14 Steiner
DBAL A3 Yes Yes Not Stated $95,807.18
DirectGov
Source Inc.
14 Photonis

ECHO WP
PVS-14
14 Steiner
DBAL A3 Yes No Included $97,609.57
Tulare City Council Meeting Page 7 of 18
Agenda Memo - June 2, 2026
Vendor Night Vision
Units
Laser
Units
Mount/Shroud
Included
Helmets
Included Shipping Total
Tactical Night
Vision Company
14 Photonis

ECHO WP
PVS-14
14 Steiner
DBAL A3 Yes No $95 Included $86,075.2
While Tactical Night Vision Company submitted the lowest overall price, its proposal did not include helmets. Black Box Safety Company was determined to provide the best overall value because its proposal includes fourteen ballistic helmets and associated mounting systems, eliminating the need to modify existing Department issued helmets and preserving their ballistic integrity. Purchasing NVGs alone would require drilling into existing helmets for mounting purposes, which could void the manufacturer's warranty and potentially compromise the ballistic integrity of the helmets.

Background/Operational Need
The Tulare Police Department SWAT Team is responsible for responding to critical incidents during nighttime and low-light conditions, including armed suspects, barricaded subjects, search warrant service, rural searches, perimeter containment, rescues, and requests to Assist other Agencies during critical incidents that are beyond the capabilities of patrol officers. These situations require SWAT Operators to safely see, identify, and respond to threats while limiting unnecessary exposure.

The equipment requested would significantly improve SWAT Operators safety, tactical effectiveness, and decision-making in darkness or low lighting conditions. The AN/PVS-14 monocular provides enhanced night vision capability, allowing officers to move, search, and identify suspects in conditions where normal vision is limited. The Wilcox G24 helmet mount provides secure and reliable mounting for hands-free use. The Steiner DBAL A3 provides visible and infrared aiming/illumination capability, improving target identification and coordination during authorized operations.

Pros of Having This Equipment for Night Operations
• Improved officer safety by reducing movement in darkness without visibility. • Better suspect identification, reducing mistaken identity risks. • Faster location of armed suspects, victims, or missing persons. • Increased effectiveness during SWAT Operations and mutual aid incidents. • Hands-free capability allows officers to communicate, climb, carry shields, or render aid. • Greater ability to operate in rural areas, alleys, fields, and unlit locations. • Enhanced coordination between team members during high-risk incidents. • Modern equipment helps the Department and SWAT remain current for potential critical incidents.

Cons of Not Having This Equipment When Needed
• Officers may need to use flashlights or white light, revealing positions to armed suspects. • Increased risk of ambush or injury in dark environments. • Slower response times in locating suspects, victims and evidence • Reduced ability to safely clear buildings or outdoor areas at night. • Greater reliance on outside agencies for specialized equipment support. • Delays during urgent incidents where time is critical. • Increased City Liability if safer available technology was not obtained.

Conclusion
This equipment is a practical investment for officer safety, public safety, and operational readiness. Approval of this purchase will provide the Tulare Police Department SWAT Team Tulare City Council Meeting Page 8 of 18
Agenda Memo - June 2, 2026
with modern night operations capabilities while enhancing officer safety and operational effectiveness.

Utilizing the League of Oregon Cities Cooperative Purchasing Agreement (RFP #2530) allows the City to procure the equipment through a competitively awarded contract consistent with the City's Purchasing Policy. Black Box Safety Company was determined to provide the best overall value because its proposal includes ballistic helmets and mounting systems not included in competing proposals, eliminating the need to modify existing Department-issued helmets and preserving their warranty and ballistic integrity.

Fiscal Impact & Funding Source(s): Funding for this purchase is available through the Police Department Budget, 100-200-201-206-210-5627.

Environmental Review: This action does not constitute a “project” pursuant to California Environmental Quality Act (CEQA).

Potential Conflict of Interest: Staff is not aware of any conflicts of interest.

Legal Review: This item does not require legal review.

Public Notice: This item does not require a public hearing and was noticed as part of the agenda.

Alternative Action: 1) Approve with changes; 2) Deny; or 3) Table.

8.8 Award Contracts for EN0098 Various Streets Northeast of Dayton and Tulare.

Task Description Contractor Amount

1. Construction Contractor 99 Pipeline of Porterville, CA $7,268,707.60

2. Inspection 4 Creeks of Visalia, CA $618,660.00

3. Materials Testing Krazan of Clovis, CA $120,220.00

4. Surveying Lane Engineers of Tulare, CA $149,400.00

5. Labor Compliance Labor Consultants of California of
Hanford, CA
$30,600.00
Summary: Capital Improvement Program Project EN0098 is a street improvement project located north of Tulare Avenue (SR 137) and east of Dayton Street. The project is both a pavement management project that will improve deteriorated streets within the project area, and a utility project that will repair/replace aging water, sewer and storm drainage facilities.

Additionally, certain ADA-compliant concrete features will be constructed. This vital project will significantly improve public infrastructure within the project boundaries, enhancing public safety and improving the City’s ability to reliably provide public services to residents. The project was included in the City’s 2026-2030 Capital Improvement Program (CIP) approved by the City Council on June 17, 2025, and by the Board of Public Utilities Commissioners on June 5, 2025.

A detailed breakdown of the construction contracts required for the subject project is as follows:

1. Construction Contract: 99 Pipeline
On May 12, 2026, ten (10) bids were opened for Request for Bids #26-835, the TulareDayton Improvement Project. The bid opening results are attached. The project sheet for Tulare City Council Meeting Page 9 of 18
Agenda Memo - June 2, 2026
EN0098 included in the adopted CIP had an estimated construction cost of $9,100,000.

Following completion of the plans and specifications, the design engineer provided a final engineer’s estimate of $7,000,000 for construction. The bids received from prospective contractors ranged from $4,971,394.00 to $9,260,145.50.

Staff conducted a comprehensive evaluation of the bids received. Through that process it was determined that the three lowest apparent bidders based upon the bid results read aloud at time of bid opening were non-responsive to the requirements of the bid solicitation, as follows:
• The bid submitted by Cal Valley Construction in the amount of $4,971,394 was non-responsive due to errors in the bid schedule submitted, and failure to meet Community Development Block Grant (CDBG) funding requirements. • The bid submitted by Archer Civil Construction in the amount of $6,653,878.84 was non-responsive due to the bidder’s failure to provide comparable reference projects, failure to complete the Build America Buy America (BABA) certification form, and failure to meet CDBG funding requirements.
• The bid submitted by Terra West Construction in the amount of $7,123,265, was non-responsive due to the bidder’s failure to meet CDBG funding requirements. 99 Pipeline of Porterville, CA submitted the lowest bid that was determined to be responsive to all requirements of the bid solicitation in the amount of $7,268,707.60.

Therefore, it is recommended that the construction contract be awarded to 99 Pipeline in that amount.

2. Construction Management and Inspection: 4 Creeks
Given the high volume of projects across the city, both private and public, the City lacks the in-house staff capacity to conduct the necessary construction inspections for the Tulare-Dayton Improvement Project. Public improvement projects require contract compliance inspections.
4 Creeks of Visalia, CA, is included on the list of pre-qualified On-Call Construction Management, Resident Engineer, and Inspection Consultants. The company has demonstrated in its proposal that it possesses the necessary skills, expertise, and resources to meet the City’s needs within the required timeframe for completing the project. 4 Creeks has reviewed the scope of this project and has proposed to perform construction inspection services on a time-and-materials basis, not to exceed $618,660, in accordance with the provisions of their on-call contract. This amount aligns with industry standards and matches what the City has experienced on projects with similar scopes of work.

3. Material Testing: Krazan
While the project is under construction, we will need to perform material testing to ensure compliance with City standards. These tests, including laboratory work, exceed the capabilities of the City’s own testing facilities.

Krazan has reviewed the scope and proposed to perform the required services on a timeand-materials basis, not to exceed $120,220, in accordance with their on-call contract.

This figure aligns with industry standards and is below the estimated cost for these services.

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4. Construction Surveying: Lane Engineers
During construction, it will be necessary to provide construction staking so the Contractor has the essential locations and elevations to properly build the improvements. Survey services include field and office surveying and recording corner records with Tulare County. As a professional service performed by a licensed surveyor, these services cannot be included in a competitively bid construction contract and therefore cannot be performed under the Contractor’s contract. Additionally, City Staff does not have the time or the professional qualifications to perform these services.

Lane Engineers of Tulare, CA, is listed among the On-Call Construction Surveying consultants, and their proposal demonstrates that they possess the necessary skills, expertise, and resources to meet the City’s needs and the timeframe for completing this project. Lane has reviewed the scope of the Tulare-Dayton Improvements Project and proposes to perform the necessary services on a time-and-materials basis, not to exceed $149,400. This amount aligns with industry standards and with the City's experience on projects with similar scopes of work.

5. Labor Compliance Monitoring: Labor Consultants of California This project is subject to Prevailing Wage requirements. To ensure proper wages are paid and accounted for in accordance with ever-changing state and federal requirements, it will be necessary to monitor labor compliance for contractors and consultants subject to these requirements. Due to the complexities involved, the City lacks the necessary expertise and resources to perform this work.

Labor Consultants of California, based in Hanford, CA, is included on the list of prequalified On-Call Labor Compliance Monitoring consultants. The company has demonstrated in its proposal that it possesses the necessary skills, expertise, and resources to meet the City’s needs and timeframe for completing the project work. Labor Consultants of California has reviewed the scope of this project and proposes to perform the necessary services on a time-and-materials basis, not to exceed $30,600, in accordance with the provisions of their on-call contract. This amount is in line with industry standards and aligns with the City's experience on projects with similar scopes of work.

Staff recommends awarding and authorizing the City Manager or their designee to sign contracts related to CIP Project EN0098 – Various Streets Northeast of Dayton and Tulare.

Additionally, staff recommends authorizing the City Manager or their designee to approve contract change orders up to 10% of each contract's amount.

Fiscal Impact & Funding Source(s): The following funding sources have been programmed for CIP Project EN0098:
• 195 – Surface Water CIP Fund
• 262 – Redevelopment CDBG Fund
• 300 – Gas Taxes Fund (RMRA) SB1
• 406 – Wastewater CIP Fund
• 407 – Water CIP Fund
Environmental Review: CIP Project EN0098 – Various Streets Northeast of Dayton and Tulare is exempt from CEQA requirements, pursuant to Sections 15301(b) (c) (d) and 15302(c).

Potential Conflict of Interest: Staff is not aware of any conflicts of interest.

Legal Review: This item does not require legal review.

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Public Notice: This item does not require a public hearing and was noticed as part of the agenda.

Alternative Action: 1) Approve with changes; 2) Deny - Reject all bids received for CIP Project EN0098 and direct staff to re-bid the project; or 3) Table - Tabling the item would delay the project schedule.

8.9 Approve Program Guidelines for HOME Investment Partnerships Program Activities.

Recommended Action: Approve Program Guidelines for the City of Tulare HOME OwnerOccupied Rehabilitation and First-Time Homebuyer Assistance activities; and authorize the City Manager and/or their designee to finalize and submit said guidelines to the California Housing and Community Development Department. [J. Cervantez; N. Brar] Summary: The City of Tulare (“City”) regularly applies for HOME ‘grant’ funds to the California Department of Housing and Community Development (“HCD”), to implement activities that provide loan or grant financing to help low-income person(s) affordably purchase a home, complete necessary improvements to their properties, and rent a home. Currently, the City’s subrecipient agreement with Self-Help Enterprises involves the implementation of owneroccupied rehabilitation and first-time homebuyer assistance with available HOME grant and program income funds. As part of administering these activities, the City and its program operators are required to maintain and update the applicable program guidelines with input from City Councilmembers and HCD.

The First-Time Homebuyer (FTHB) Program aims to facilitate homeownership opportunities for low-income individuals and families within the Tulare City limits by providing financial assistance towards down payment, closing costs, and/or gap financing. FTHB program guidelines establish the applicable eligibility requirements, income limits, property eligibility standards, loan terms, occupancy requirements, underwriting criteria, and administrative procedures necessary for program implementation. The Owner-Occupied Rehabilitation (OOR) Program is designed to assist eligible low-income homeowners with housing repair and rehabilitation projects. OOR program provides assistance in the form of deferred payment loans used to finance the cost of necessary repairs and improvements that address healthy, safe, sanitary, and code-compliant homes for low-income homeowners, thereby preserving the City’s existing house stock. The OOR program guidelines establish income limits, eligibility requirements, eligible rehabilitation activities, loan terms, property standards, and program requirements.

Per the City’s Citizen Participation Plan, only substantial changes to the scopes of the FTHB and/or OOR Programs will require City Council review and approval. As such, the Housing Division would also amend program guidelines to reflect changes to program eligibility and delivery. If approved as presented, the Housing Division will submit the FTHB and OOR program guidelines to HCD for their review and approval. Final versions will remain available on the City’s Housing Programs website.

Fiscal Impact & Funding Source(s): There is no fiscal impact associated with this action.

Environmental Review: This action does not constitute a “project” pursuant to California Environmental Quality Act (CEQA).

Potential Conflict of Interest: Staff is not aware of any conflicts of interest.

Legal Review: This item involves the adoption of program guidelines for HOME activities, and at the time of major scope changes and/or new related agreements to implement related activities the City Attorney will be consulted.

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Public Notice: This item does not require a public hearing and was noticed as part of the agenda.

Alternative Action: 1) Approve with changes; 2) Deny; or 3) Table. If approval is not given, the City risks a delay and interruption to the implementation of particular HOME activities.

8.10 Acceptance and Appropriation of 2024 CalHome Program Grant.

Recommended Action: Accept and appropriate a 2024 CalHome Program Award in the amount of $1,000,000 from the California Department of Housing and Community Development; and authorize the execution of a standard agreement, any amendments thereto, and any related documents necessary to participate in the CalHome Program. [J. Cervantez] Summary: The California Department of Housing and Community Development (HCD or Department) released the 2024 Homeownership Super Notice of Funding Availability (HOSN) in December 2024 for approximately $176.8 million in funds for the following programs:

CalHome Program ($143.1 million); and, Joe Serna, Jr. Farmworker Housing Grant Program – Homeownership (“Serna Homeownership”) ($33.7 million). The City of Tulare, with Self-Help Enterprises, received City Council’s permission to apply to the HOSN, via Resolution No. 2025- 13, for $1,000,000 in CalHome grant funds to implement First Time Homebuyer Mortgage Assistance (MA) and Owner-Occupied Rehabilitation (OOR) activities.

The City received a conditional award letter, dated October 27, 2025, from HCD regarding the conditional award of $500,000 for Mortgage Assistance and $500,000 for Owner-Occupied Rehabilitation activities. The conditional award of $1,000,000 in 2024 CalHome Program funds is based on and subject to the representations of the City’s application to the 2024 Homeownership Super Notice of Funding Availability (HOSN) and other terms and conditions identified by HCD. Further, HCD requested that the City submit a new resolution accepting said award and related obligations, that identifies the Mayor as an “authorized representative” per California Government Code § 40602. This section states, among other measures, that “The mayor shall sign a) all warrants drawn on the city treasurer b) all written contracts and conveyances made or entered into by the city and c) all instruments requiring the city seal.” The City’s previously submitted Resolutions No. 2025-13 and No. 2025-70, did not list the Mayor as an authorized representative. As such, City staff prepared a new resolution as part of accepting the 2024 CalHome award and preparation for executing a standard agreement (Contract No. 25-CalHome-18734) with HCD.

CalHome Program Background
CalHome funding provides Loans and Grants to Local Public Entities and Nonprofits for Homeownership Development Projects, Self-Help Technical Assistance Projects, Mortgage Assistance Programs, Owner-Occupied Rehabilitation Programs, ADU/JADU Programs, Shared Housing Programs and Programs for the Acquisition of Manufactured Housing for Agricultural Households. The administration of the CalHome and Serna Programs are governed by the applicable Program Guidelines that implement, interpret, or make specific the following laws:
• The CalHome Program was established by Chapter 6, commencing with §50650) of Part 2 of Division 31 of the California Health & Safety Code (“HSC”); • The Serna Program was established by Chapter 3.2 (commencing with §50515.2) of Part 2 of Division 31 of the HSC. The Serna Guidelines referenced in this HOSN apply only to the Homeownership elements of Serna. Rental housing development activities are governed under a separate set of Program Guidelines; • Building Homes and Jobs Act (Sen. Bill No. 2 (2017-2018 Reg. Sess.) § 1); and, • Veterans and Affordable Housing Bond Act of 2018 (Sen. Bill No. 3 (2017-2018 Reg.

Sess.) § 1) which was adopted by voters on November 6, 2018, as Proposition 1, provided funding for the CalHome and Serna Programs and authorized the Department Tulare City Council Meeting Page 13 of 18
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to administer the Programs through the Guidelines. These Guidelines were explicitly exempt from the requirements of the Administrative Procedures Act (Chapter 3.5).

The 2024 HOSN and the City’s implementation of CalHome activities are governed by the CalHome Final Guidelines (2024). As such, the City and its subrecipient, Self-Help Enterprises, must implement the planned First-Time Homebuyer Mortgage Assistance (commencing with Guidelines §402) for Loans to Eligible Households as defined in Guidelines §203 and the Occupied Rehabilitation Assistance (including repair, full reconstruction, or the addition of an ADU or JADU) (Guidelines §403) for Loans to Eligible Households as defined in Guidelines §203. The City currently leverages CalHome to reuse funds (i.e., program income created by the repayment of loans issued to eligible borrowers through past CalHome grants) for MA and OOR activities. And, if approved, receipt of a 2024 CalHome award would constitute the most recent allocation under the CalHome since a 2008 award of CalHome funds.

Fiscal Impact & Funding Source(s): Acceptance of a 2024 CalHome Program award will impact Fund 310 and Account 751 by way of a new appropriation across Fiscal Years 2026, 2027, and/or 2028. As a grant, the award involves reimbursement for eligible expenses up to $1,000,000 between the City and its subrecipient.

Environmental Review: This action does not constitute a “project” pursuant to California Environmental Quality Act (CEQA).

Potential Conflict of Interest: Community Development Department staff find a potential conflict of interest with this action involving the Mayor, who is an employee of Self-Help Enterprises, the planned subrecipient of 2024 CalHome funds.

Legal Review: This item does not require legal review.

Public Notice: This item does not require a public hearing and was noticed as part of the agenda.

Alternative Action: 1) Approve with changes; 2) Deny; or 3) Table. If the 2024 CalHome grant is not accepted by City Council, then the City will forfeit access to the conditional award of $1,000,000 and jeopardize future grant applications with HCD involving CalHome and/or related state programs.

9.1 Active Transportation Plan Adoption.

Recommended Action: Approve a resolution adopting the City of Tulare 2026 Active Transportation Plan. [S. Sopp]
Summary: In 2024, the Tulare County Association of Governments provided the City with $200,000 for the preparation of an Active Transportation Plan (ATP). With funding secured, the City’s Community Development Department issued a request for proposals (RFP) for qualified firms to prepare the ATP. On November 5, 2024, the City Council approved a professional services agreement with TJKM Transportation Consultants to prepare the ATP.

The purpose of the ATP is to assist the City in meeting the needs of commuter and recreation bicycle users and pedestrians. It will assist the City in efforts to obtain local, state and federal funds for bikeways, sidewalks, and related facilities. The ATP vision statement is:

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“Tulare envisions a City where individuals of all ages, abilities, income levels, and backgrounds can safely, conveniently, and comfortably walk, bike, roll, or use mobility devices to reach their destinations and access transit. A well-connected network of pedestrian and bicycle facilities will seamlessly link homes, jobs, schools, transit hubs, and other key destinations. This network will empower residents to choose active, sustainable travel options, fostering improved public health, reduced environmental impact, and an enhanced quality of life”.

The ATP development and community outreach process included numerous in-person and virtual means of public engagement and data collection, including:
• ATP Project Website www.tularesafestreets.com (November 2024 – Present) • Interactive ArcGIS Dashboard to identify collision trends & patterns (November 2024 - Present)
• Survey with interactive map-based input (March 2025 – August 2025) • Street Story Report comment review and Integration (October 2018 – July 2025) • Pop-up event at the Community Health Fair (June 4, 2025) • City Council Presentation and Workshop (October 7, 2025) • Public Review Draft Available (March 25, 2026)
As part of the ATP, an existing conditions assessment was conducted. This assessment compiled and organized information on multi-modal travel volumes, collision data, City development standards and regulations, and relevant policy documents, reports, and studies.

This information was used to identify bicycle and pedestrian high injury corridors, gaps in the existing bicycle network, and gaps in sidewalks.

With this assessment, a list of recommended bicycle and pedestrian projects and programs was developed (as shown on page 76 of the public review draft). The recommended project list will be used to inform and prioritize future bicycle and pedestrian CIP projects, future grant applications, and future active transportation planning efforts.

Fiscal Impact & Funding Source(s): There is no fiscal impact associated with this action.

Individual projects identified within the ATP will be programmed in the future based upon availability of grant funding and upon available funding and capital project programing.

Environmental Review: This action is exempt from the California Environmental Quality Act (CEQA) pursuant to Public Resources Code Section 21080.20.

Potential Conflict of Interest: Staff is not aware of any conflicts of interest.

Legal Review: This item does not require legal review.

Public Notice: A notice of public hearing was published in The Visalia Times Delta on May 21, 2026, which is at least 10 days prior to the public hearing.

Alternative Action: 1) Approve with changes; 2) Deny; or 3) Table.

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10.1 Actions Related to the 2026 Municipal General Election.

Recommended Action: 1) Adopt a resolution calling the General Municipal Election, requesting and consenting to consolidation with the statewide general election on November 3, 2026, and requesting election services from the Tulare County Registrar of Voters; 2) Adopt a resolution calling an election and submitting to voters an additional one-cent Transactions and Use Tax Measure for general purposes; 3) Introduce and authorize the submission to voters of an ordinance amending Tulare Municipal Code Chapter 5.78 to increase the Transactions and Use Tax by one cent, contingent upon majority voter approval; and 4) Adopt a resolution of intention conveying the Council’s intended use of revenue from the additional one-cent general sales tax measure. [M. Wilcox]
Summary: The City of Tulare is required to conduct its regular General Municipal Election in even-numbered years concurrent with the statewide general election. The next such election will occur on November 3, 2026. Two City Council seats will be on the ballot:
• District 2, Full Term (2026-2030)
• District 4, Full Term (2026-2030)
In addition, the City is pursuing a general sales tax measure to increase the Transactions and Use Tax one percent (or one cent), intended to provide locally controlled revenue for essential City services.

Election Consolidation
The California Elections Code allows and encourages consolidation with the statewide election where feasible (EC Sections 10400-10418). Consolidation ensures:
• Cost savings
• Efficient administration
• Compliance with statutory publication, ballot materials, and voter information requirements.

The Tulare County Registrar of Voters would provide election services such as filing of nomination papers, ballot preparation, voter information guides, vote-by-mail services, canvass, and certification. The City will reimburse the County for actual costs.

Sales Tax Measure Overview
The proposed measure would increase Tulare’s Transactions and Use Tax from 0.5% to 1.5% and is projected to generate approximately $16 million annually in unrestricted General Fund revenue.

The measure is intended to support community priorities such as:
• Maintaining 911 emergency, fire, paramedic, and police response • Preventing crime and gang activity
• Recruiting and retaining public safety personnel
• Keeping parks, roads, and public areas clean and safe • Addressing homelessness
• Protecting drinking water sources
• Supporting local businesses
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As a general tax, the measure requires approval by a simple majority of Tulare voters and must appear on a statewide general election ballot at which Council seats are elected (Cal. Const.

Art. XIIIC, Sec. 2(b)).

Ballot Language
The ballot question, as proposed in the resolution reads:
“Shall the measure funding City of Tulare general services, such as maintaining 911 emergency/fire/paramedic/police response; preventing crime and gang activity; recruiting/retaining police, firefighters, paramedics; keeping public areas/parks clean/safe; repairing roads/potholes; addressing homelessness; protecting local drinking water sources; retaining/attracting local businesses, by increasing the existing sales tax by 1¢, providing approximately $16,000,000 annually until ended by voters, requiring independent audits, public spending disclosure, all funds used locally, be adopted?” Resolution Conveying Council’s Intent Regarding Use of Revenue In addition to calling the election and submitting the sales tax measure to voters, the Council may choose to adopt an optional resolution of intention conveying its intended priorities for the use of revenue generated by the proposed one-cent general sales tax measure.

The draft resolution states that:
• The City Council formally acknowledges its funding priorities for revenue generated from the proposed one-cent Transactions and Use Tax measure (left blank to indicate specific priorities).
• These funding priorities are not legally binding on future City Councils but represent a policy statement by the current seated Council.
• The resolution reiterates that the measure is anticipated to generate approximately $16 million annually in general fund revenue to support community priorities. • The City will maintain independent financial audits and annual community reports to ensure transparency and responsible use of funds.

This resolution provides voters with additional clarity about the Council’s priorities without converting the measure into a special tax.

Fiscal Impact & Funding Source(s): The cost of the consolidated election will be billed by Tulare County based on actual expenses and is included in the Fiscal Year 2027 Budget. Tulare County estimates the cost of the election to be $54,500. If approved by voters, the measure is projected to generate approximately $16 million annually in unrestricted revenue for general government purposes.

Environmental Review: This action does not constitute a “project” pursuant to California Environmental Quality Act (CEQA).

Potential Conflict of Interest: Staff is not aware of any conflicts of interest.

Legal Review: The City Attorney reviewed the resolutions and ordinance.

Public Notice: This item does not require a public hearing and was noticed as part of the agenda.

Alternative Action: 1) Approve with changes; 2) Deny; or 3) Table.

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10.2 Adoption of City of Tulare Fiscal Year 2027 Operating Budget.

Recommended Action: 1) Adopt a resolution approving and adopting the City of Tulare Fiscal Year 2027 Budget totaling $205,503,980, including a General Fund operating budget where revenues plus operating transfers in exceed expenditures plus operating transfers out by $22,755; approving several additional capital improvement projects totaling $1,953,540 using available unassigned General Fund fund balance, establishing the appropriations therefor, and authorizing the City Manager to approve the necessary interfund transfers; and adopting the Fiscal Year 2027-2031 Capital Improvement Program; 2) Adopt a resolution establishing the appropriations limit for Fiscal Year 2027; and 3) Adopt a resolution establishing the Position Authorization Resolution for Fiscal Year 2027; and 4) Adopt a resolution approving an amendment to the City’s Master Salary Schedule. [M. Roberts] Summary: City staff presented the City of Tulare Fiscal Year 2027 preliminary budget to City Council at two separate City Council meetings on April 7 and May 19, 2026. Following direction from Council regarding changes to the preliminary budget, staff presents the City of Tulare Fiscal Year 2027 Proposed Budget (including the Personnel Control Budget) for adoption. The table below is a summary of the General Fund, the City’s primary operating fund.

Total Budget – All Funds
Anticipated Revenues $ 200,555,024
Estimated Expenditures 205,503,980
General Fund
Estimated Revenues $ 77,689,311
Estimated Transfers In 58,370
Proposed Expenditures (74,788,926)
Proposed Transfers Out (without CIP transfers) (2,936,000) Operating Surplus / (Use) of Fund Balance $ 22,755
Proposed General Fund CIP Total (1,953,540)
Total Surplus / (Use) of Fund Balance ($ 1,930,785)
At two separate meetings on April 2 and May 7, 2026, staff presented the Fiscal Year 2027 Municipal Utilities Preliminary Budget to the City of Tulare Board of Public Utilities Commissioners (BPU). The BPU Fiscal Year 2027 Municipal Utilities Proposed Budget was adopted on May 21, 2026.

Capital projects to be funded by the City’s General Fund are also hereby presented for approval, as well as the City’s Fiscal Year 2027-2031 Capital Improvement Program costs of projects.

Pursuant to Article XIIIB of the California Constitution, the Council must approve the establishment of the City’s appropriations limit prior to the beginning of each fiscal year. The appropriations limit, which became effective following passage of Propositions 13 and 4 by California voters in 1978 and 1979, respectively, places a limit on the growth of local government spending by capping revenue that can be appropriated in any given fiscal year.

The City’s limit is calculated by adjusting its prior year’s limit on the basis of changes in population and per capita personal income. The City’s proposed fiscal year 2027 appropriations are within its appropriations limit, thereby meeting the Article XIIIB requirement.

Fiscal Impact & Funding Source(s): There is no fiscal impact associated with this action.

Environmental Review: This action does not constitute a “project” pursuant to California Environmental Quality Act (CEQA).

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Potential Conflict of Interest: Staff is not aware of any conflicts of interest.

Legal Review: This item does not require legal review.

Public Notice: This item does not require a public hearing and was noticed as part of the agenda.

Alternative Action: 1) Approve with changes; 2) Deny; or 3) Table.

11. FUTURE AGENDA ITEMS - NONE SUBMITTED [Time Estimate: 8:00 p.m.]

12. STAFF UPDATES [Time Estimate: 8:00 p.m.]

13. RECESS TO CLOSED SESSION TO DISCUSS THE FOLLOWING [Time Estimate: 8:05 p.m.]

13.2 Conference with Legal Counsel - Anticipated Litigation Initiation of litigation pursuant to Gov. Code § 54956.9(d)(4): 2 cases

14. RECONVENE FROM CLOSED SESSION [Time Estimate: 8:45 p.m.]

15. CLOSED SESSION REPORT - This is the time for Council to publicly report specified closed session action and the vote taken on those actions, if any.

16. ADJOURNMENT [Time Estimate: 8:45 p.m.]
The next regularly scheduled meeting of the Tulare City Council is Tuesday, June 16, 2026, at 5:30 p.m. in the Council Chamber, 491 North M Street, Tulare.

Flora Ann Johnson
WHEREAS, Flora Ann Snowden was born on April 4, 1945, in Altus, Oklahoma. As the second child of a single parent, she was raised in a community marked by hardship and segregation. Despite these challenges, her family persevered and, in 1958, moved to California in pursuit of a better life; and WHEREAS, in 1960, the family settled in Tulare, where Flora attended Tulare Union High School, graduating with the Class of 1963. During her high school years, she participated in track and was introduced to Mt. Zion Temple Church, which would become a cornerstone of her spiritual life; and WHEREAS, in 1976, Flora began her career in education as a preschool teacher at Lincoln Elementary School in Tulare. She continued her professional development by earning a Bachelor of Science degree in Child Development from Fresno State University, along with a Lifetime Teaching Credential; and WHEREAS, on June 19, 1982, Flora married the love of her life, Deacon Lonnie C. Johnson. Together, they made their home in Oakland, California, and were blessed with three children. Flora’s career in education flourished as she served in various roles including Trainer, Vice Principal, and Principal, earning numerous accolades along the way, including Teacher of the Year; and WHEREAS, in 2008, Flora Johnson founded Grandma’s House: A Vision of Hope, an after-school tutoring and math academy dedicated to supporting youth. In 2014, the program expanded with the purchase and renovation of a facility that became a vibrant learning center. Guided by the belief that “it takes a village to raise a child,” Flora’s vision provided critical educational support for at-risk youth in the community; and WHEREAS, for her unwavering dedication to youth, education, and community service, Flora Johnson received numerous honors, including the Charles Parker Award from College of the Sequoias, Promise Keeper recognition from PAW District 7, Region 3, Tulare Chamber of Commerce Woman of the Year and Non-Profit of the Year, and Tulare City Council Woman of the Year, among many others; and WHEREAS, Flora Ann Johnson departed this life on October 29, 2025. She leaves behind a legacy of loving kindness, compassionate service, and steadfast faith. Her lifelong commitment to children, education, and community upliftment will continue to inspire generations to come.

NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Tulare hereby honors and remembers Flora Ann Johnson for her extraordinary contributions to the City of Tulare and its residents, and extends its deepest gratitude for her life of service, leadership, and love.

Dated this 18th day of November 2025.

Patrick Isherwood, Mayor
Stephen C. Harrell, Vice Mayor
Jose Sigala, Councilmember
Terry A. Sayre, Councilmember
Dennis A. Mederos, Councilmember
Resolution of Remembrance
WHEREAS, The Salvation Army has faithfully served communities across the United States and around the world by providing food, shelter, disaster relief, rehabilitation services, youth programs, and spiritual support to individuals and families in need; and WHEREAS, National Salvation Army Week was first declared by Dwight D. Eisenhower in 1954 to recognize the organization’s compassionate service and dedication to helping others; and WHEREAS, the members, officers, employees, volunteers, and supporters of The Salvation Army continue to demonstrate unwavering commitment to improving lives through acts of kindness, generosity, and hope; and
WHEREAS, during times of hardship, emergency, and uncertainty, The Salvation Army remains a trusted source of assistance and encouragement for people of all backgrounds; and WHEREAS, it is fitting to recognize the positive impact and meaningful contributions made by The Salvation Army within our community and beyond; and WHEREAS, the City of Tulare recognizes and appreciates the dedicated service provided by The Salvation Army to residents throughout the community, offering assistance, compassion, and support to individuals and families in times of need.

NOW, THEREFORE, we, the City Council of the City of Tulare, do hereby proclaim the week of May 11-17, 2026 as
National Salvation Army Week
in the City of Tulare and encourage all citizens to acknowledge and support the ongoing efforts of the Salvation Army in serving those in need and strengthening our community.

Dated this 19th day of May 2026.

Patrick Isherwood, Mayor
Stephen C. Harrell, Vice Mayor
Jose Sigala, Councilmember

Terry A. Sayre, Councilmember
Dennis A. Mederos, Councilmember
Proclamation
WHEREAS, the City of Tulare supports the rights of every citizen to experience equality and freedom from discrimination; and
WHEREAS, all people regardless of age, gender identity, race, color, religion, marital status, national origin, sexual orientation, or physical challenges have the right to be treated on the basis of their intrinsic value as human beings; and
WHEREAS, the City of Tulare values diversity and is committed to ensuring Tulare is a welcoming, inclusive, and safe community for all including our LGBTQ families, friends, neighbors, and co-workers; and
WHEREAS, while society at large increasingly supports LGBTQ equality, it is essential to acknowledge that the need for education and awareness remains vital to end discrimination and prejudice; and
WHEREAS, The Source LGBT+ Center’s community-driven mission, developed through collaboration with LGBTQ youth, leaders, and stakeholders, focuses on creating safe, supportive, and inclusive spaces where LGBTQ people can learn, grow, belong, and thrive, serving as a vital resource in the Central Valley, guided by its vision of a community where all LGBTQ people are valued and celebrated; and
WHEREAS, the City of Tulare appreciates the value and dignity of each person, recognizes the importance of equality and freedom, and acknowledges positive contributions made by members of the LGBTQ community to actively promote principles of equality, acceptance, and love.

NOW, THEREFORE, we, the City Council of the City of Tulare, do hereby proclaim the month of June 2026 as
LGBTQ Pride Month
in the City of Tulare and urges all residents to respect and honor our diverse community and celebrate and build a culture of inclusiveness and acceptance.

Dated this 2nd day of June 2026.

Patrick Isherwood, Mayor
Stephen C. Harrell, Vice Mayor
Jose Sigala, Councilmember
Terry A. Sayre, Councilmember
Dennis A. Mederos, Councilmember
Proclamation
WHEREAS, June has been celebrated as National Dairy Month since 1937 as a way to promote the consumption of dairy products and to thank those involved in the dairy industry for their labors; and WHEREAS, the Dietary Guidelines for Americans report published by the United States Department of Agriculture and Department of Health and Human Services recommends consuming three servings of dairy products each day as part of a balanced diet; and WHEREAS, since 1969, the California Milk Advisory Board was established whose mission is to spread the word about extraordinary dairy products made with Real California Milk; and WHEREAS, California has been the lead dairy-producing state in the nation with Tulare County as the largest dairy-producing county in the nation with a gross value of approximately $2.27 billion in milk production representing over a quarter of the total crop and livestock value; and WHEREAS, Tulare County prides itself on its vibrant agricultural sector, of which the dairy industry represents a key part; and
WHEREAS, in addition to fluid milk, dairy processors in Tulare produce a variety of products including cheese, ice cream, butter, yogurt, and powdered milk; and WHEREAS, the dairy industry contributes in innumerable ways to the state and local community’s economic prosperity.

NOW, THEREFORE, we, the City Council of the City of Tulare, do hereby proclaim the month of June 2026 as
National Dairy Month
in the City of Tulare and encourage all citizens to celebrate the valuable contributions that the dairy industry has made to our community and beyond.

Dated this 2nd day of June 2026.

Patrick Isherwood, Mayor
Stephen C. Harrell, Vice Mayor
Jose Sigala, Councilmember
Terry A. Sayre, Councilmember
Dennis A. Mederos, Councilmember
Proclamation
Staff Report
Meeting: City Council
Date: June 2, 2026
Department: City Clerk
Submitted by: Melissa Wilcox, Chief Deputy City Clerk
Agenda Title: Approval of City Council Meeting Minutes

RECOMMENDED ACTION
Approve the minutes of the special and/or regular meeting of May 19, 2026.

SUMMARY
The meeting minutes for the May 19, 2026 meeting are provided for Council review and approval.

FISCAL IMPACT & FUNDING SOURCES
There is no fiscal impact associated with this action.

ENVIRONMENTAL REVIEW
This action does not constitute a “project” pursuant to the California Environmental Quality Act (CEQA).

POTENTIAL CONFLICT OF INTEREST
Staff is not aware of any conflicts of interest.

LEGAL REVIEW
This item does not require legal review.

PUBLIC NOTICE
This item does not require a public hearing and was noticed as a part of the agenda.

ALTERNATIVE ACTION

1. Approve with changes

2. Deny

3. Table

ATTACHMENTS

1. Meeting Minutes
Reviewed/Approved: TG
Item #: 8.2
Consent
City of Tulare Page 1 of 4
City Council Meeting Minutes
Tuesday, May 19, 2026 - 5:30 p.m. Regular Meeting
City Council Chamber, 491 North M Street, Tulare, California Proper notice of this regular meeting of the Tulare City Council was given pursuant to California Government Code Section 54954.2.

City Council Present: Mayor Patrick Isherwood, Vice Mayor Stephen C. Harrell, Terry A. Sayre, Dennis A. Mederos
City Council Absent: Jose Sigala
Staff Present: City Attorney Mario U. Zamora; Chief Deputy City Clerk Melissa Wilcox; Assistant City Manager Thomas W. Gaffery IV; Deputy City Manager/Chief Technology Officer Jason Bowling; Chief Financial Officer Mark Roberts; City Engineer Michael Miller; Public Works Director Trisha Whitfield; Police Captain Ray Guerrero; Fire Chief Michael Ott; General Services Director Manny Correa; Community Development Director Mario Anaya; Human Resources Director Janie Venegas; Housing and Grants Specialist Norveen Brar

1. CALL TO ORDER
Mayor Isherwood called to order the regular meeting of the Tulare City Council at 5:34 p.m. in the Council Chamber located at 491 North M Street.

2. PLEDGE OF ALLEGIANCE AND INVOCATION
Vice Mayor Harrell led the Pledge of Allegiance, and an invocation was given by Brian Bell, The Church of Jesus Christ Latter-day Saints.

3. PROCLAMATIONS & RECOGNITIONS

3.1 Proclamation for National Public Works Week, May 17-23, 2026. Mayor Isherwood read and presented a proclamation to Public Works Director Whitfield proclaiming May 17-23, 2026 as National Public Works Week.

3.2 Proclamation for National Salvation Army Week, May 11-17, 2026. Mayor Isherwood advised this proclamation would be rescheduled to ensure members of the Salvation Army are in attendance to be recognized for their service.

4. PUBLIC COMMENT
Donnette Silva, Tulare Chamber of Commerce CEO, provided various Chamber updates.

5. COMMUNICATIONS
Assistant City Manager Gaffery advised there were no communications.

6. COUNCIL REPORTS AND ITEMS OF INTEREST
Council reported on recent events and discussed items of interest.

7. CONSENT CALENDAR
Item 7.6 was removed from the Consent Calendar.

City Council Meeting Minutes Tuesday, May 19, 2026
City of Tulare Page 2 of 4
It was moved by Councilmember Mederos, seconded by Councilmember Sayre, and carried 4 to 0 (Councilmember Sigala absent) to approve the items on the Consent Calendar as presented except for item 7.6.

7.1 Waive the reading of ordinances and approve reading by title only.

Recommended Action: Approve the reading by title only of all ordinances and that further reading of such ordinances be waived.

7.2 Approval of City Council Meeting Minutes.

Recommended Action: Approve the minutes of the special and/or regular meeting of May 5, 2026. [M. Wilcox]

7.3 Economic Development Updates.

Recommended Action: Receive an update on economic development activities [J. Gomez]

7.4 Tulare Fire Chief Officer Group Side Letter of Agreement No. 1.

Recommended Action: Adopt a resolution approving and authorizing the execution of Side Letter of Agreement No. 1 between the City and Tulare Fire Chief Officer Group (TFCO), amending Memorandum of Understanding (MOU) adopted December 2, 2025, for the term of July 1, 2025, through June 30, 2028. [J. Venegas]

7.5 Professional Services Agreement with Rick Engineering Company.

Recommended Action: Authorize the City Manager to sign a contract with Rick Engineering Company in the amount of $462,202 for professional consulting services associated with the preparation of a Sustainable Agricultural Lands Conservation (SALC) Strategic Plan. [M. Anaya]

7.7 Purchase of Two Polaris Utility Vehicles (UTVs).

Recommended Action: Award the purchase of two utility vehicles for a total of $30,000 and adopt a resolution amending the Fiscal Year 2026 Budget approving the use of Fund 605 Fleet replacement fund balance and the appropriation of $30,000. [M. Correa]

7.8 Parcel Map Acceptance – TPM 2025-04.

Recommended Action: Approve the Parcel Map filed by Holmes Properties, LLC for the division of land located on the south side of Corvina Avenue, west of Hillman Street, and accept all dedications and easements offered to the City. [M. Miller]

ITEM(S) PULLED FROM CONSENT CALENDAR

7.6 Inyo Corridor Streetscape, Placemaking, and Revitalization Project.

Recommended Action: Approve a Professional Services Agreement with Zack Urban Solutions, Inc. (ZUS) in an amount not to exceed $198,000, subject to minor or clarifying changes approved by both the City Attorney and the City Manager; and authorize the City Manager or designee to approve contract change orders in an amount not to exceed 10% ($19,800). [T. Gaffery] Council Action: This item was pulled by Councilmember Mederos for clarification. It was moved by Councilmember Mederos, seconded by Vice Mayor Harrell, and carried 4 to 0 (Councilmember Sigala absent) to approve the item as presented.

8. PUBLIC HEARING

8.1 Approve 2026 Annual Action Plan Involving CDBG and HOME Funds.

Recommended Action: Approve the 2026-2027 Annual Action Plan to appropriate approximately $1,124,832 of Community Development Block Grant (CDBG) funds across public infrastructure, public services, affordable housing preservation, and program administration activities, and $791,794.52 of HOME Investment Partnerships (HOME) Program funds across affordable housing development, tenant based rental assistance, program administration, and community housing development organization activities; and authorize the City Manager and/or City Council Meeting Minutes Tuesday, May 19, 2026
City of Tulare Page 3 of 4
their designee to execute related agreements and all other materials as necessary for the CDBG and HOME Programs.

Presented By: Housing and Grants Specialist Brar
Public Comment: The public hearing was opened at 5:56 p.m. Receiving no public comment, the hearing was closed at 5:56 p.m.

Council Action: Mayor Isherwood recused himself due to a conflict of interest (employed by SelfHelp Enterprises). It was moved by Councilmember Sayre, seconded by Councilmember Mederos, and carried 3 to 0 (Councilmember Sigala absent; Mayor Isherwood recused) to approve the item as presented.

9. GENERAL BUSINESS

9.1 Committee on Aging Appointment.

Recommended Action: Appoint one member to the Committee on Aging to the vacant seat for a term ending December 31, 2027.

Presented By: Chief Deputy City Clerk Wilcox
Public Comment: There were no public comments.

Council Action: It was moved by Councilmember Sayre, seconded by Councilmember Mederos, and carried 4 to 0 (Councilmember Sigala absent) to appoint Cecilia Franco to the Committee on Aging for a term ending December 31, 2027.

9.2 Policy on Handling Service Disruptions During Hybrid Public Meetings.

Recommended Action: Adopt a resolution approving the Policy on Handling Service Disruptions During Hybrid Public Meetings and directing the City Clerk to implement associated noticing and publication requirements.

Presented By: Chief Deputy City Clerk Wilcox
Public Comment: There were no public comments.

Council Action: It was moved by Councilmember Mederos, seconded by Vice Mayor Harrell, and carried 4 to 0 (Councilmember Sigala absent) to approve the item as presented.

9.3 Tulare Mosquito Abatement District Appointment.

Recommended Action: Adopt a resolution making an appointment to the Tulare Mosquito Abatement District Board of Directors for a term from July 1, 2026, through December 31, 2029.

Presented By: Chief Deputy City Clerk Wilcox
Public Comment: There were no public comments.

Council Action: It was moved by Councilmember Mederos, seconded by Vice Mayor Harrell, and carried 4 to 0 (Councilmember Sigala absent) to adopt a resolution appointing Craig Smith to the Tulare Mosquito Abatement District Board of Directors for a term from July 1, 2026 through December 31, 2029.

9.4 Fiscal Year 2027 Preliminary Capital Improvement Program Review.

Recommended Action: Review the City of Tulare Fiscal Year 2027 Preliminary Capital Improvement Program and provide direction thereto.

Presented By: City Engineer Miller
Public Comment: There were no public comments.

Council Action: Questions posed by Council were responded to by staff. It was the consensus of Council to move forward with the Fiscal Year 2027 Preliminary Capital Improvement Program as presented.

9.5 Fiscal Year 2027 Preliminary Budget Review.

Recommended Action: Review the preliminary Fiscal Year 2027 budget and provide direction thereto.

Presented By: Chief Financial Officer Roberts; Budget Finance Manager Del Cid Public Comment: There were no public comments.

Council Action: There was no action taken.

City Council Meeting Minutes Tuesday, May 19, 2026
City of Tulare Page 4 of 4

10. FUTURE AGENDA ITEMS

10.1 Board Member Appointment Process.

Recommended Action: Direct staff to add to a future agenda or take no action.

Submitted By: Councilmember Mederos
Council Action: It was the consensus of Council to have staff add this item to a future agenda.

11. STAFF UPDATES
Staff provided updates on department activities.

12. RECESS TO CLOSED SESSION TO DISCUSS THE FOLLOWING ITEMS

12.1 Conference with Labor Negotiators (Gov. Code § 54957.6) Agency Designated Representatives: City Attorney Zamora, Assistant City Manager Gaffery, Deputy City Manager/CTO Bowling, Human Resources Director Venegas Employee Organization(s): California League of City Employees Association (CLOCEA)

12.2 Conference with Legal Counsel - Anticipated Litigation Significant exposure to litigation pursuant to Govt. Code § 54956.9(d)(2): 1 case

12.3 Conference with Legal Counsel - Existing Litigation (Govt. Code § 54956.9(d)(1)) Name of Case: VCU317197 Laborers International Union of North America Local 294 and People of the State of California, Ex Rel. Rob Bonta, Attorney General of the State of California v. City of Tulare
Council recessed to closed session at 6:54 p.m.

13. RECONVENE FROM CLOSED SESSION
Council reconvened from closed session at 7:49 p.m.

14. CLOSED SESSION REPORT
There was no reportable action.

15. ADJOURNMENT
Seeing no further business to discuss, Mayor Isherwood adjourned the regular meeting at 7:49 p.m.

This is to certify that the foregoing is a true and correct copy of the minutes of the special and/or regular meeting held on May 19, 2026, as approved by the Tulare City Council.

Marc Mondell, City Clerk

By Melissa Wilcox, Chief Deputy City Clerk
Staff Report
Meeting: City Council
Date: June 2, 2026
Department: Human Resources
Submitted by: Janie Venegas, Human Resources Director
Agenda Title: California League of City Employees Association Side Letter of Agreement No. 2

RECOMMENDED ACTION
Adopt a resolution approving and authorizing the execution of Side Letter of Agreement No. 2 between the City of Tulare and California League of City Employees Association (CLOCEA) clarifying revisions to Memorandum of Understanding (MOU) for the term of July 1, 2024 through June 30, 2027 adopted October 15, 2024.

SUMMARY
The City and CLOCEA met and conferred regarding amendments to the current MOU. The proposed Side Letter of Agreement No. 2 clarifies several provisions within the current MOU and the City’s Merit System Rules and Regulations. The revisions address scheduling practices, overtime administration, holiday compensation provisions, and certification pay eligibility.

The proposed revisions are intended to improve administrative consistency, operational efficiency, payroll administration and clarity in application of MOU provisions.

Key revisions include:
1) Clarify standard work periods and designated work weeks for employees and transitions the Library to the standard citywide Saturday through Friday schedule. 2) Formalize existing alternative work schedules for certain operational divisions, including Water, Streets, Sewer Collection, Storm Drain, and Wastewater Operations. 3) Clarify the City’s authority and notice requirements regarding schedule and shift modifications. 4) Update and clarify scheduled and unscheduled overtime provisions for Public Safety Dispatch employees.
5) Revise holiday provisions to ensure hours applied to correct leaves bank 6) Add a holiday in lieu benefit for Public Safety Dispatch employees by changing the benefit from holiday hours credited to a leave bank to an automatic cash payout twice annually 7) A one-time 12-hour payout for eligible Public Safety Dispatch employees following ratification of agreement.
8) Add the Cross Connection Specialist classification to the list of classifications eligible for Certification Pay.

FISCAL IMPACT & FUNDING SOURCES
Funding for this Side Letter will be included in the Fiscal Year 2027 general fund budget and will be accounted for in subsequent years as part of the development process. The one-time payout provision is approximately $4,500, which is manageable within the existing Police Department budget.

ENVIRONMENTAL REVIEW
This action does not constitute a “project” pursuant to the California Environmental Quality Act (CEQA).

POTENTIAL CONFLICT OF INTEREST
Staff is not aware of any conflicts of interest.

Item #: 8.3
Consent

LEGAL REVIEW
This item has been reviewed by the City Attorney.

PUBLIC NOTICE
This item does not require a public hearing and was noticed as part of the agenda.

ALTERNATIVE ACTION

1. Approve with changes

2. Deny

3. Table

ATTACHMENTS

1. Resolution

2. City of Tulare and CLOCEA Side Letter of Agreement No. 2 Reviewed/Approved: TG
RESOLUTION 2026-XXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TULARE
APPROVING SIDE LETTER OF AGREEMENT NO. 2 BETWEEN THE CITY OF TULARE

AND THE CALIFORNIA LEAGUE OF CITY EMPLOYEES ASSOCIATION WHEREAS, the City of Tulare and the California League of City Employees Association (CLOCEA) are parties to a Memorandum of Understanding (MOU) that covers the period from July 1, 2024 through June 30, 2027; and
WHEREAS, representatives of the City and CLOCEA met and conferred in good faith regarding clarifying revisions and amendments to certain provisions of the current MOU and the City’s Merit System Rules and Regulations; and
WHEREAS, the parties have reached agreement on Side Letter of Agreement No. 2 to address work schedules, overtime provisions, holiday compensation, Holiday Comp administration, and certification pay eligibility; and
WHEREAS, the City Council is familiar with the terms and provisions of said MOU; and WHEREAS, all legal prerequisites to the adoption of this esolution have occurred; and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Tulare, as follows:

Section 1. The above recitals are true and correct.

Section 2. The City Council hereby approves Side Letter of Agreement No. 2 between the City of Tulare and the California League of City Employees Association, attached hereto and incorporated herein by reference.

Section 3. The City Manager is hereby authorized and directed to execute and implement the Side Letter of Agreement No. 2 on behalf of the City.

PASSED, APPROVED, AND ADOPTED by the City Council of the City of Tulare this 2nd day of June 2026, by the following vote:

Ayes:

Noes:

Absent:

Abstain:

Patrick Isherwood, President of the Council
and Ex-Officio Mayor
ATTEST:

Marc Mondell, City Clerk
By Melissa Wilcox, Chief Deputy City Clerk
The presence of an electronic signature certifies that the foregoing is a true and correct copy as approved by the Tulare City Council.

Page 1 of 4 ends

SIDE LETTER OF AGREEMENT NO. 2

BY AND BETWEEN THE

CITY OF TULARE

AND THE

CALIFORNIA LEAGUE OF CITY EMPLOYEES ASSOCIATION
June 2026
The parties have discussed and agree as follows to the additional or modified terms and conditions regarding the City of Tulare Merit System Rules and Regulations (City Council Resolution 2025- 33), and the Memorandum of Understanding between the City of Tulare (City) and the California League of City Employees Association (CLOCEA), dated October 15, 2024.

The City and CLOCEA have discussed and have come to an agreement on necessary clarifying revisions and amendments as follows:

1. Article XIX – COMPENSATION AND HOURS
Section B – Standard Work Periods
The standard work period for City employees shall be as follows:

The standard work period for all employees covered by this MOU shall be forty (40) hours within a work week of seven (7) consecutive days.

The designated work week shall commence at 12:01 a.m. on Saturday and conclude at midnight on the following Friday.

Wastewater Operator in Training (OIT) and Wastewater Operators Grades I, II, and III standard work period is a 4-10 work schedule – 4 days a week, 10-hour shift days. The remainder of employees of the Wastewater Treatment Plan shall remain on the 5-8 schedule.

Section C – Exceptions to Standard Work Periods

1. No change.

2. No change.

3. The City retains the right to modify work shifts, schedules, and working hours for employees assigned to the Streets, Water, Sewer Collection, Storm Drain, Parks, and Library divisions.

The City shall provide affected employees with written notice of any schedule change at least ten (10) calendar days in advance.

Page 2 of 4 ends

For employees in the Streets, Water, Sewer Division, Sewer Collection, Storm Drain, and Parks and Recreation Divisions, scheduled work shifts shall fall within the hours of 6:00 a.m. and 2:30 p.m., unless otherwise specified in this Agreement or required for operational needs.

The City retains the discretion to schedule employee breaks and meal periods in a manner that ensures continuity of service to the public.

The alternative work schedule for the Water, Streets, Sewer Collection, and Storm Drain divisions is no longer considered a pilot program.

4. Library employees shall work either eight (8)-hour or ten (10)-hour shifts, as scheduled based on the operational needs of the department.

Section G. Overtime Provisions – Police Dispatch

1. No change.

2. No change.

3. No change.

4. No change.

5. Compensation for Scheduled Overtime: When an employee works overtime that is scheduled five (5) days or more in advance, the two (2) hour minimum stated in XIX.G.6 “Compensation for Unscheduled Overtime” shall not apply. For the purposes of calculating overtime, all hours worked and any paid leaves, except sick leave, shall count towards the overtime threshold, per XIX, F “Overtime Computation: Standard Work Week.”

6. Compensation for Unscheduled Overtime: When an employee is required to return to work at the request of the Department outside their regular shift or when overtime is scheduled with less than five (5) calendar days’ advance notice, the employee shall automatically receive two (2) hours of pay at their base (straight time) rate in addition to actual hours worked. For the purposes of calculating overtime, all hours worked and any paid leaves, except sick leave, shall count towards the overtime threshold, per XIX, F “Overtime Computation: Standard Work Week.”
Section K – Paid Holidays

1. No change.

2. If any of the foregoing holidays fall on Saturday, the preceding Friday shall be observed as a holiday. If any of the foregoing holidays fall on a Sunday, the Monday

Page 3 of 4 ends

following shall be observed as a holiday. If any of the foregoing holidays fall on an employee’s normal day off, except Saturday or Sunday, they shall be credited to floating holiday. When the Christmas Eve and New Year's Eve Holidays fall on a Sunday, the Eve Holidays and Christmas and New Year Holidays will be observed on Monday and Tuesday. In the same manner, when the Christmas and New Year Holidays fall on a Saturday, they will be observed on Thursday and Friday.

3. Solid Waste and Wastewater Treatment Employees: Except for New Year’s Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas Day, paid holidays shall not be observed by employees in the Solid Waste Division. a. Solid Waste employees working on non-observed holidays shall receive eight (8) hours of holiday pay at straight time and hours worked shall be paid based on over-time calculation (Section XIX, D). Employees shall be provided up to eight (8) hours of compensatory time off for those required to work a 10- or 12- hour schedule to help cover those hours used to make up the 40-hour week during a holiday schedule. These hours shall be credited to Holiday Comp. b. Wastewater employees required to work on a holiday shall receive eight (8) hours of holiday pay at straight time and hours worked shall be paid based on over-time calculation (Section XIX, D) and shall receive time and one-half for each hour worked. Wastewater Operators on a 4-10 shift only will be provided up to eight (8) hours of compensatory time off to help cover those hours used to make up the 40-hour work week during the holiday schedule. These hours shall be credited to Holiday Comp

4. The City shall credit hours for Holiday Comp as of July 1 of the current calendar year. • Employees hired or reappointed after July 1 shall receive a prorated amount based on months of service remaining in the calendar year. • Proration shall be calculated as follows:
• Divide eight (8) hours by twelve (12) months
• Multiply the result by the number of full months remaining in the calendar year from the employee’s start date.

5. Regular Holidays for Pay Purposes (Holiday in Lieu) – Police Dispatch Dispatchers who are scheduled to work without regard to holidays shall receive a cash payout of twelve (12) days, (ninety-six (96) hours) in lieu of holidays.

The holidays covered by this section are as follows and shall be paid at the employee’s base (straight time) rate.

1. January 1 (New Year’s Day)

2. The third Monday in January (Martin Luther King Jr. birthday)

3. The third Monday in February (President’s Day)

4. The last Monday in May (Memorial Day)

5. July 4 (Independence Day)

Page 4 of 4 ends

6. The first Monday in September (Labor Day)

7. November 11 (Veterans Day)

8. The fourth Thursday in November (Thanksgiving Day)

9. The day after Thanksgiving Day

10. December 24 (Christmas Eve)

11. December 25 (Christmas Day)

12. December 31 (New Year’s Eve)
Payments for these twelve (12) days shall be made automatically, in lieu of taking the time off, as follows: six (6) days shall be paid in the first full pay period in June, and six (6) days shall be paid in the first full pay period in December of each year. a) As a one-time provision, twelve (12) hours will be paid out on the first full pay period following the ratification of this Side Letter.

Section X – Certification Pay
Section X is hereby amended to include Cross Connection Specialist to the list of classifications eligible for the benefit.

CITY OF TULARE: CLOCEA:

Janie Venegas Mike Cosenza
Human Resources Director CLOCEA Administrator

Marc Mondell Steve Garcia
City Manager CLOCEA Tulare President
APPROVED AS TO FORM: ATTEST:

Christina D. Smith Marc Mondell, City Clerk
Deputy City Attorney By: Melissa Wilcox
Chief Deputy City Clerk
Staff Report
Meeting: City Council
Date: June 2, 2026
Department: Economic Development & Redevelopment
Submitted by: Jennifer Gomez, Exec. Director of Economic Development & Redevelopment Agenda Title: Downtown Tulare PBID Summary Report

RECOMMENDED ACTION
Receive the Summary Report of the Formation and Engagement Activities of a Downtown Property Based Business Improvement District (PBID) with no further action recommended at this time.

SUMMARY
In 2023, the City of Tulare engaged services with NBS and CivicMic to support the formation of a Downtown Property Based Business Improvement District (PBID). Efforts included stakeholder engagement activities with multiple revisions for the proposed framework of the PBID including district boundaries, budget, and types of services provided. NBS provided technical assistance with the legally required methodology to calculate the assessment rates, prepared Engineer’s Reports, and mailed Petitions to the property owners.

This mentality will likely shift as new owners look to invest in the downtown to transition from being stagnant to a more vibrant destination.

It is, therefore, management’s recommendation that the City not further support the establishment of a PBID unless it is requested by the property owners.

Item #: 8.4
Consent

FISCAL IMPACT & FUNDING SOURCES
There is no fiscal impact associated with this action.

ENVIRONMENTAL REVIEW
This action does not constitute a “project” pursuant to the California Environmental Quality Act (CEQA).

POTENTIAL CONFLICT OF INTEREST
Staff is not aware of any conflicts of interest.

LEGAL REVIEW
This item does not require legal review.

PUBLIC NOTICE
This item does not require a public hearing and was noticed as a part of the agenda.

ALTERNATIVE ACTION

1. Approve with changes

2. Deny

3. Table

ATTACHMENTS

1. Tulare PBID Summary Report
Reviewed/Approved: TG
NBS | Downtown Tulare PBID — Engagement Activities Summary NBS — Page 1 of 7
NBS Government Finance Group
Formation and Engagement Activities Summary Report
Downtown Tulare Property-Based Business Improvement District (PBID) Client: City of Tulare Period Covered: Late 2023 – April 2026 Prepared by: NBS Date: May 11, 2026

1. Purpose
This report summarizes the formation efforts and the property owner and stakeholder engagement activities conducted in support of the proposed formation of a Property-Based Business Improvement District (PBID) in the downtown area of the City of Tulare. The summary covers the period from late 2023 through April 2026 and consolidates formation, outreach events, technical milestones, and consensusbuilding activities undertaken by the City of Tulare in partnership with NBS and CivicMic. The report is intended to provide a complete chronological record of efforts to date and to document the level of stakeholder support evidenced through the petition process.

2. Project Context
The initiative explored the formation of a downtown PBID to fund a coordinated set of services and improvements within a defined district. Over the course of the engagement, the proposed framework underwent multiple revisions in response to stakeholder feedback, City direction, and evolving budgetary considerations. The initial concept contemplated three service categories — Cleaning and Maintenance, Safety and Homelessness, and Marketing and Economic Development — organized into two service zones (Zone A and Zone B) based upon the frequency and types of services proposed. The original boundary was generally framed by O Street, Inyo Avenue, J Street, and Cross Avenue, with early consideration given to incorporating the existing Town Square PBID into the new district. That incorporation concept was later set aside in response to property owner feedback.

3. Chronological Summary of Engagement Activities
The following table consolidates engagement activities, technical deliverables, and stakeholder communications completed across the project period. Activities are presented in chronological order.

Date Engagement Activity Lead / Participants Outcome / Notes October 25,
2023
Walking tour of the proposed district
area with business and property
owners.

City of Tulare; NBS and
CivicMic staff
Provided firsthand
orientation to district
conditions and initiated
stakeholder dialogue.

November
2023
Creation of a project-specific
website and survey.

CivicMic A dedicated location for
outreach and
NBS | Downtown Tulare PBID — Engagement Activities Summary NBS — Page 2 of 7
Date Engagement Activity Lead / Participants Outcome / Notes engagement to the
community –
civicmic.com/tulare.

December
2023
Distribution of an introductory
postcard to downtown stakeholders.

CivicMic Early outreach and
general awareness of the
proposed PBID effort.

December 12,
2023
Stakeholder meeting to discuss the
potential PBID.

City of Tulare;
Property Owners; NBS;
CivicMic
Initial substantive
discussion of the
proposed district
concept.

Late 2023 Initial assessment of downtown
service needs and preparation of a
Funding Recommendations
Memorandum.

NBS Evaluated funding
mechanisms;
recommended PBID
formation. Initial services
included Cleaning and
Maintenance, Safety and
Homelessness, and
Marketing and Economic
Development. The
framework included Zone
A and Zone B based upon
service frequency and
type. The proposed
boundary was generally
bounded by O Street,
Inyo Avenue, J Street, and
Cross Avenue.

Incorporation of the
existing Town Square
PBID was contemplated
but later set aside based
on property owner
feedback.

Early 2024 Revision of district boundaries and
service components in response to
schedule and stakeholder
considerations.

City of Tulare; NBS;
CivicMic
Project timeline extended
to allow for additional
refinement.

April 2024 Delivery of a revised budget
reflecting an increase to the
Marketing component.

City of Tulare; NBS Increase tied to the
Zumwalt Park renovation
and the anticipated
economic activity it
would generate.

Continued challenges
aligning the proposed
budget with stakeholder
NBS | Downtown Tulare PBID — Engagement Activities Summary NBS — Page 3 of 7
Date Engagement Activity Lead / Participants Outcome / Notes expectations and district
boundaries.

July 2024 Refinement of budget, services, and
district boundary; recalculation of
assessments.

City of Tulare; NBS Overall scope of services
reduced to address cost
concerns. NBS updated
the general benefit (GB)
methodology and
recalculated assessment
rates based upon the
revised budget, services,
and zones. Assessments
remained relatively high
due to the reduced
boundary in relation to
the overall budget.

October 2024 Completion and delivery of an
updated Engineer’s Report.

NBS Reflected the refined
budget, services, and
boundary.

November–
December
2024
Additional property owner outreach. City of Tulare; NBS; CivicMic
Communicated proposed
details and gauged
property owner support.

Early 2025 Transition in City staffing supporting
the PBID effort.

City of Tulare Gladys assumed
responsibilities related to
the PBID effort.

January 21,
2025
Presentation to the Tulare City
Council regarding the proposed
PBID.

City of Tulare; NBS;
CivicMic
Provided Council with a
status update and
overview of the proposed
district.

February 2025 Production of an informational flyer
for distribution to stakeholders.

CivicMic Supporting outreach
material describing the
proposed district.

March 4, 2025 Property owner outreach meeting. City of Tulare; NBS; CivicMic; Property
Owners
Stakeholder feedback
included notable
concerns and resistance.

Planned petition
distribution was deferred
due to insufficient
support.

April 4, 2025 Addition of a City staff member and
a special committee to support the
PBID effort.

City of Tulare A special committee was
formed, and Jennifer
Gomez joined the City
team, contributing to
ongoing PBID activities.

NBS | Downtown Tulare PBID — Engagement Activities Summary NBS — Page 4 of 7
Date Engagement Activity Lead / Participants Outcome / Notes July 25, 2025 City Manager Letter to Property
Owners
City Manager, CivicMic City manager letter sent
to all property owners
explaining the history of
the PBID formation
efforts and next steps.

September 3,
2025
Community workshop convened to
relaunch and reassess the PBID
initiative.

City of Tulare; NBS;
CivicMic; Property
Owners
Feedback indicated
continued dissatisfaction
among property owners;
significant revisions to
the proposed district
followed.

September
2025
Finalization and delivery of survey
results to inform district revisions.

CivicMic Findings supported a
further revised, reduced
district boundary;
elimination of Safety and
Security services and
associated Zones; and
updates to the overall
budget.

December
2025
Completion of an updated
Engineer’s Report reflecting the
reduced scope.

NBS District focused on a
limited set of core
services centered on the
Cleaning and
Maintenance Program
within a defined
boundary.

December
2025
Distribution of petitions to property
owners.

City of Tulare; NBS;
CivicMic
Level of support received
was insufficient to
advance the formation
process.

March 2026 Mailing of a second round of
petitions to property owners.

City of Tulare; NBS;
CivicMic
Second formal
opportunity for property
owners to indicate
support for formation.

End of April
2026
Compilation of returned petition
results.

City of Tulare; NBS Results indicated 23.89%
support (in favor) and

29.12% opposition.

Support remained below
the threshold required to
advance formation.

NBS | Downtown Tulare PBID — Engagement Activities Summary NBS — Page 5 of 7

4. Narrative Overview by Phase

4.1 Late 2023 — Initial Formation Efforts
The initial effort to explore the formation of a downtown PBID began in late 2023, in collaboration with CivicMic. As part of early outreach and engagement, NBS and the City coordinated a walking tour of the proposed district area with business and property owners on October 25, 2023. CivicMic distributed a postcard to stakeholders in November or December 2023 to announce a survey, and a stakeholder meeting was held on December 12, 2023, with property owners, City representatives, NBS, and CivicMic.

During this period, NBS conducted an initial assessment of the downtown area, identifying service needs and preparing a Funding Recommendations Memorandum that ultimately recommended the formation of a PBID.

4.2 Early to Mid-2024 — Refinement of Scope and Schedule Adjustment At the beginning of 2024, it became evident that the project timeline was behind schedule and the formation timeline was extended. During this period, both district boundaries and service components were actively revised. By April 2024, the City had delivered a revised budget that included an increased Marketing component, reflecting the Zumwalt Park renovation and the anticipated economic activity it was expected to generate. Notwithstanding this revision, the City continued to face challenges aligning the proposed budget with stakeholder expectations and district boundaries. In July 2024, the City refined the budget, services, and district boundary, and the overall scope of services was reduced to address cost concerns. Assessments nonetheless remained relatively high due to the reduced boundary in relation to the overall budget. NBS updated the general benefit (GB) methodology and recalculated assessment rates based upon the revised inputs.

4.3 Late 2024 — Engineer’s Report and Outreach
In October 2024, NBS completed and delivered an updated Engineer’s Report reflecting the refined budget, services, and boundary. Following delivery of the report, the City initiated additional outreach efforts with property owners during November and December 2024 to gauge support and communicate proposed details.

4.4 Early 2025 — Leadership Transition and Continued Outreach In early 2025, there was a transition in City staffing supporting the effort, with Traci departing and Gladys temporarily assuming PBID-related responsibilities. On January 21, 2025, NBS and CivicMic supported the City in delivering a presentation to the City Council regarding the PBID. CivicMic produced an informational flyer in February 2025 and a property owner outreach meeting was held on March 4, 2025.

Stakeholder feedback during this period included notable concerns and resistance. Although there had been plans to distribute petitions following outreach, that step was deferred due to insufficient support.

A special committee was formed to assist in the ongoing refinement of the proposed PBID. On April 4, 2025, Jennifer Gomez joined the City team and contributed to ongoing PBID efforts.

NBS | Downtown Tulare PBID — Engagement Activities Summary NBS — Page 6 of 7

4.5 Mid 2025 — Reassessment and Relaunch
On July 25, 2026, the City Manager wrote an update to property owners and stakeholders in the proposed PBID to explain the history of PBID formation efforts and the next steps. On September 3, 2025, the City hosted a community workshop to relaunch and reassess the PBID initiative. Feedback from the workshop indicated ongoing dissatisfaction among property owners, prompting significant revisions to the proposed district. Later in September 2025, CivicMic finalized and delivered survey results, which informed a new round of adjustments. These adjustments included the establishment of a further revised, reduced district boundary; the elimination of Safety and Security services and associated Zones; and updates to the overall budget. Multiple one-on-one stakeholder meetings and committee meetings were held to discuss services, frequency of services and budget considerations.

4.6 December 2025 — Updated Engineer’s Report and First Petition Distribution In December 2025, an updated Engineer’s Report was completed reflecting the reductions described in Section 4.5. The district focused primarily on a limited set of core services centered on the Cleaning and Maintenance Program within a defined boundary. Petitions were distributed to property owners in December 2025; however, the level of support received was insufficient to advance the formation process.

4.7 2026 — Second Petition Effort and Results
A second round of petitions was mailed in March 2026. As of the end of April 2026, returned petitions reflected weighted results of 23.89% in favor of the formation and 29.12% in opposition. These results indicated continued challenges in achieving the level of property owner support required to advance PBID formation.

5. Petition Results
The following summary reflects petition results reported across the two formal petition rounds undertaken during the engagement period.

Petition Round In Favor Opposition
First Petition Round (December 2025) Insufficient to advance formation
Not separately reported
Second Petition Round (mailed March 2026; results
through end of April 2026)

23.89% 29.12%
Note: Percentages above reflect property owner returns received as of the end of April 2026 for the second petition round. Results from the December 2025 round were determined to be insufficient to advance the formation process; specific tallies for that round are not summarized here and may be confirmed against the City’s petition records.

NBS | Downtown Tulare PBID — Engagement Activities Summary NBS — Page 7 of 7

6. Conclusion
From late 2023 through April 2026, the City of Tulare, in partnership with NBS and CivicMic, undertook multiple engagement efforts to establish a downtown PBID. Despite extensive outreach, multiple revisions to district boundaries, service levels, and budgets, and repeated attempts to build consensus, the initiative continued to face challenges in securing sufficient stakeholder support to proceed with formation. This report provides a consolidated record of those engagement activities and serves as a foundation for the City’s future deliberations regarding alternative funding mechanisms or revised approaches to downtown service delivery.

Staff Report
Meeting: City Council
Date: June 2, 2026
Department: Engineering Services - Project Management
Submitted by: Michael Miller, City Engineer
Agenda Title: Project Delivery Schedule for EN0097 International Agri Center Way Extension

RECOMMENDED ACTION
Receive and file the project delivery schedule for capital improvement project EN0097 International AgriCenter Way Extension, and direct staff to circulate to project stakeholders.

SUMMARY
CIP Project EN0097 is a street construction project to extend International Agri-Center Way between Laspjna Street and Turner Drive and includes the installation of master plan water and sewer infrastructure within the roadway. The project will improve traffic circulation in the southern portion of Tulare by providing a direct connection between the newly constructed International Agri-Center Way interchange on Highway 99 and the Turner Drive/Mooney Boulevard corridor, with traffic signal improvements at the intersection of International Agri-Center Way and Laspina Street. The new roadway connection and utility improvements will also facilitate the planned expansion of the International AgriCenter facilities, and the pending development of other adjacent properties.

Council and other project stakeholders have routinely requested updates on the status of the project.

Working with both the design and environmental consultants assigned to the project, staff has developed the attached project delivery schedule. This schedule represents an aggressive, but realistic, approach to completing the project well within the delivery timelines required by the project’s federal funding appropriation. Staff seeks Council’s concurrence with the schedule presented, which would then be shared with the various project stakeholders to both provide assurance that the project is advancing, and to provide affected landowners with notice of approaching milestones requiring action on their part.

FISCAL IMPACT & FUNDING SOURCES
The following funding sources are being utilized for CIP Project EN0097:
• 230 – Streets DIF Fund
• 225 – Water Supply Fac. DIF Fund
• 226 – Wastewater Treatment Fac. DIF Fund
• 301 – Measure R Fund
• 330 – Other Grants (Federal Earmark)

ENVIRONMENTAL REVIEW
This action does not constitute a “project” pursuant to the California Environmental Quality Act (CEQA).

POTENTIAL CONFLICT OF INTEREST
Staff are not aware of any conflicts of interest.

LEGAL REVIEW
This item does not require legal review.

PUBLIC NOTICE
This item does not require a public hearing and was noticed as a part of the agenda.

Item #: 8.5
Consent

ALTERNATIVE ACTION

1. Approve with changes – Staff would incorporate changes directed by Council into the project schedule.

2. Deny

3. Table

ATTACHMENTS

1. EN0097 Project Delivery Schedule
Reviewed/Approved: TG

CITY OF TULARE ENGINEERING DEPARTMENT
Capital Improvement Project EN0097 - International Agri-Center Way Extension Project Delivery Schedule

1. NEPA Studies (City):
a. Estimated date of Caltrans adoption of NEPA Categorical Exclusion by - August 31, 2026.

2. Right-of-Way Dedication (City/IAC/Faria Family):
a. Grant Deed for ROW from Faria Family – Received.
b. IAC to provide City with Grant Deed for ROW by - June 30, 2026. c. City Council acceptance of ROW dedications - July 21, 2026.

3. Earmark Funding Allocation (City/Caltrans):
a. Allocation of federal funds by - September 30, 2026.

4. Clear right-of-way of trees and private improvements, including fences, irrigation facilities and electrical for private well (IAC/Faria Family):
a. Work can begin at any time, but to be completed by – October 31, 2026.

5. SCE utility relocations (City/SCE):
a. Final approval contract obligations - October 2026.
b. Utility relocation complete by - December 31, 2026.

6. Construction Contract Bid Process (City):
a. Circulate Plans and Specifications for bidding by - October 5, 2026.

7. Construction Contract Award Process (City):
a. Open bids - November 19, 2026.
b. City Council award of construction contract - December 1, 2026.

8. Construction Phase (City/Contractor):
a. First day of work – January 11, 2027.
b. Anticipated last working day – July 2, 2027.

Notes:
a. City has survey and staking available for ROW location, tree removal, fence relocation, etc., allowing for property owners to complete that work sooner than what is shown on the schedule if so desired.
b. Construction timeframe = 6 months. Construction activities will have to accommodate IAC activities associated with the 2027 World Ag Expo. c. The construction schedule shown works well for paving activities occurring during prime construction season.

Bryan Cahill
Project Manager
[email protected]
(559) 331-1953
Staff Report
Meeting: City Council
Date: June 2, 2026
Department: Fire
Submitted by: Michael Ott, Fire Chief
Agenda Title: Cooling & Heating Resilience Center Relocation

RECOMMENDED ACTION
Authorize the relocation of the Cooling & Heating Resilience Center from Prosperity Sports Park (PSP) to the Tulare Public Library.

SUMMARY
The Cooling & Heating Resilience Center has primarily been located at the PSP Clubhouse since 2022.

Prior to that, the program operated at several locations throughout the community, including the Meitzenheimer Community Center, the Tulare Public Library, Senior Community Center, and the Hillman Health Center. In 2024, the City also placed retired City buses at the Tulare C.A.R.E.S. Encampment to provide a centrally located Cooling & Heating Resilience Center for individuals staying at the encampment, reducing the need for those individuals to travel across town to the PSP Clubhouse.

Data collected from 2022 through 2025 shows the center has been activated a total of 62 times, with approximately 18 individuals utilizing the service over the program’s four years of operation. While the fiscal impact has remained relatively low, total operational costs were approximately $15,500.00 over the four-year period, averaging approximately $250.00 per activation.

Additionally, the Tulare Public Library has historically served as a place where residents can seek protection from environmental conditions while utilizing educational resources, reading materials, or study areas. The library is centrally located within the City of Tulare, is within close proximity to the primary public transportation hub and already serves as a familiar and accessible public facility for residents. The library also provides ADA accessibility, climate-controlled space, restroom access, and is staffed with a full-time security guard for guest safety. Current operating hours are Tuesday, Wednesday, and Friday from 10:00 a.m. to 6:00 p.m., Thursday from 10:00 a.m. to 8:00 p.m., and Saturday from 10:00 a.m. to 5:00 p.m. On days the library is closed, and temperatures reach the established activation thresholds, the lobby area and restroom facilities could remain open from 3:00 p.m. to 7:00 p.m. to continue providing public access to a safe environment during extreme weather conditions.

Furthermore, transitioning the Cooling & Heating Resilience Center operations to the Tulare Public Library may position the City to pursue future grant funding opportunities through the California Strategic Item #: 8.6
Consent
Growth Council’s “Community Resilience Centers Program”. This program supports the development and enhancement of community-serving facilities that provide critical resources and safe refuge during climate-related emergencies and extreme weather events. By utilizing an existing centrally located public facility that already serves vulnerable populations, the City may become more competitive for grant funding opportunities related to resilience improvements, backup power systems, energy efficiency upgrades, emergency preparedness enhancements, public health protections, and expanded community services during disasters and extreme weather conditions.

FISCAL IMPACT & FUNDING SOURCES
There is no fiscal impact associated with this action

ENVIRONMENTAL REVIEW
This action does not constitute a “project” pursuant to the California Environmental Quality Act (CEQA).

POTENTIAL CONFLICT OF INTEREST
Staff is not aware of any conflicts of interest.

LEGAL REVIEW
This item does not require legal review.

PUBLIC NOTICE
This item does not require a public hearing and was noticed as a part of the agenda.

ALTERNATIVE ACTION

1. Approve with changes

2. Deny

3. Table

ATTACHMENTS
None
Reviewed/Approved: TG
Staff Report
Meeting: City Council
Date: June 2, 2026
Department: Police
Submitted by: Ray Guerrero, Captain
Agenda Title: Award Purchase of Night Vision Goggles

RECOMMENDED ACTION
Award the purchase of specialized night operations equipment from Black Box Safety Company under the League of Oregon Cities Cooperative Purchasing Agreement (RFP #2530) in the amount of $95,807.18, plus applicable freight costs, if required.

SUMMARY
The equipment requested would significantly improve SWAT Operators' safety, tactical effectiveness, and decision-making in darkness or low-light conditions. The AN/PVS-14 monocular provides enhanced night vision capability, allowing officers to move, search, and identify suspects in conditions where normal vision is limited. The Wilcox G24 helmet mount provides secure mounting of the NVG. The Steiner DBAL A3 provides visible and infrared aiming and illumination capability, improving target identification and coordination during authorized operations.

The results are summarized below:

Vendor Night Vision
Units
Laser
Units
Mount/Shroud
Included
Helmets
Included Shipping Total
Black Box Safety
Company
14 Photonis

ECHO WP
PVS-14
14 Steiner
DBAL A3 Yes Yes Not Stated $95,807.18
DirectGov
Source Inc.
14 Photonis

ECHO WP
PVS-14
14 Steiner
DBAL A3 Yes No Included $97,609.57
Tactical Night
Vision Company
14 Photonis

Item #: 8.7
Consent
The equipment requested would significantly improve SWAT Operators safety, tactical effectiveness, and decision-making in darkness or low lighting conditions. The AN/PVS-14 monocular provides enhanced night vision capability, allowing officers to move, search, and identify suspects in conditions where normal vision is limited. The Wilcox G24 helmet mount provides secure and reliable mounting for hands-free use. The Steiner DBAL A3 provides visible and infrared aiming/illumination capability, improving target identification and coordination during authorized operations.

Conclusion
This equipment is a practical investment for officer safety, public safety, and operational readiness.

Approval of this purchase will provide the Tulare Police Department SWAT Team with modern night operations capabilities while enhancing officer safety and operational effectiveness.

FISCAL IMPACT & FUNDING SOURCES:

Funding for this purchase is available through the Police Department Budget, 100-200-201-206-210- 5627.

ENVIRONMENTAL REVIEW
This action does not constitute a “project” pursuant to the California Environmental Quality Act (CEQA).

POTENTIAL CONFLICT OF INTEREST
Staff is not aware of any conflicts of interest.

LEGAL REVIEW
This item does not require legal review.

PUBLIC NOTICE
This item does not require a public hearing and was noticed as a part of the agenda.

ALTERNATIVE ACTION

1. Approve with changes

2. Deny

3. Table

ATTACHMENTS
None
Reviewed/Approved: TG
Staff Report
Meeting: City Council
Date: June 2, 2026
Department: Engineering Services - Project Management
Submitted by: Michael Miller, City Engineer
Agenda Title: Award Contracts for EN0098 Various Streets Northeast of Dayton and Tulare

RECOMMENDED ACTION
Award and authorize the City Manager to sign contracts related to construction of CIP Project EN0098 Various Streets Northeast of Dayton and Tulare; and authorize the City Manager or designee to approve contract change orders in an amount not to exceed 10% of each contract amount.

Task Description Contractor Amount

1. Construction Contractor 99 Pipeline of Porterville, CA $7,268,707.60

2. Inspection 4 Creeks of Visalia, CA $618,660.00

3. Materials Testing Krazan of Clovis, CA $120,220.00

4. Surveying Lane Engineers of Tulare, CA $149,400.00

5. Labor Compliance Labor Consultants of California of Hanford, CA $30,600.00

SUMMARY
Capital Improvement Program Project EN0098 is a street improvement project located north of Tulare Avenue (SR 137) and east of Dayton Street. The project is both a pavement management project that will improve deteriorated streets within the project area, and a utility project that will repair/replace aging water, sewer and storm drainage facilities. Additionally, certain ADA-compliant concrete features will be constructed. This vital project will significantly improve public infrastructure within the project boundaries, enhancing public safety and improving the City’s ability to reliably provide public services to residents.

The project was included in the City’s 2026-2030 Capital Improvement Program (CIP) approved by the City Council on June 17, 2025, and by the Board of Public Utilities Commissioners on June 5, 2025.

A detailed breakdown of the construction contracts required for the subject project is as follows:

1. Construction Contract: 99 Pipeline
On May 12, 2026, ten (10) bids were opened for Request for Bids #26-835, the Tulare-Dayton Improvement Project. The bid opening results are attached. The project sheet for EN0098 included in the adopted CIP had an estimated construction cost of $9,100,000. Following completion of the plans and specifications, the design engineer provided a final engineer’s estimate of $7,000,000 for construction. The bids received from prospective contractors ranged from $4,971,394.00 to $9,260,145.50.

Staff conducted a comprehensive evaluation of the bids received. Through that process it was determined that the three lowest apparent bidders based upon the bid results read aloud at time of bid opening were non-responsive to the requirements of the bid solicitation, as follows:
• The bid submitted by Cal Valley Construction in the amount of $4,971,394 was nonresponsive due to errors in the bid schedule submitted, and failure to meet Community Development Block Grant (CDBG) funding requirements.
• The bid submitted by Archer Civil Construction in the amount of $6,653,878.84 was nonresponsive due to the bidder’s failure to provide comparable reference projects, failure to complete the Build America Buy America (BABA) certification form, and failure to meet CDBG funding requirements.

Item #: 8.8
Consent
• The bid submitted by Terra West Construction in the amount of $7,123,265, was nonresponsive due to the bidder’s failure to meet CDBG funding requirements. 99 Pipeline of Porterville, CA submitted the lowest bid that was determined to be responsive to all requirements of the bid solicitation in the amount of $7,268,707.60. Therefore, it is recommended that the construction contract be awarded to 99 Pipeline in that amount.

2. Construction Management and Inspection: 4 Creeks
Given the high volume of projects across the city, both private and public, the City lacks the inhouse staff capacity to conduct the necessary construction inspections for the Tulare-Dayton Improvement Project. Public improvement projects require contract compliance inspections. 4 Creeks of Visalia, CA, is included on the list of pre-qualified On-Call Construction Management, Resident Engineer, and Inspection Consultants. The company has demonstrated in its proposal that it possesses the necessary skills, expertise, and resources to meet the City’s needs within the required timeframe for completing the project. 4 Creeks has reviewed the scope of this project and has proposed to perform construction inspection services on a time-and-materials basis, not to exceed $618,660, in accordance with the provisions of their on-call contract. This amount aligns with industry standards and matches what the City has experienced on projects with similar scopes of work.

Krazan of Clovis, CA, is listed among the pre-qualified On-Call Geotechnical and Materials Testing consultants. Their proposal demonstrates that they have the skills, expertise, and resources necessary to meet the City’s requirements and deadlines for this project. Krazan has reviewed the scope and proposed to perform the required services on a time-and-materials basis, not to exceed $120,220, in accordance with their on-call contract. This figure aligns with industry standards and is below the estimated cost for these services.

Additionally, City Staff does not have the time or the professional qualifications to perform these services.

Labor Consultants of California, based in Hanford, CA, is included on the list of pre-qualified OnCall Labor Compliance Monitoring consultants. The company has demonstrated in its proposal that it possesses the necessary skills, expertise, and resources to meet the City’s needs and timeframe for completing the project work. Labor Consultants of California has reviewed the scope of this project and proposes to perform the necessary services on a time-and-materials basis, not to exceed $30,600, in accordance with the provisions of their on-call contract. This amount is in line with industry standards and aligns with the City's experience on projects with similar scopes of work.

Staff recommends awarding and authorizing the City Manager or their designee to sign contracts related to CIP Project EN0098 – Various Streets Northeast of Dayton and Tulare. Additionally, staff recommends authorizing the City Manager or their designee to approve contract change orders up to 10% of each contract's amount.

FISCAL IMPACT & FUNDING SOURCES
The following funding sources have been programmed for CIP Project EN0098:
• 195 – Surface Water CIP Fund
• 262 – Redevelopment CDBG Fund
• 300 – Gas Taxes Fund (RMRA) SB1
• 406 – Wastewater CIP Fund
• 407 – Water CIP Fund

ENVIRONMENTAL REVIEW
CIP Project EN0098 – Various Streets Northeast of Dayton and Tulare is exempt from CEQA requirements, pursuant to Sections 15301(b) (c) (d) and 15302(c).

POTENTIAL CONFLICT OF INTEREST
Staff is not aware of any conflicts of interest.

LEGAL REVIEW
Subsequent contract approval to be reviewed by the City Attorney.

PUBLIC NOTICE
This item does not require a public hearing and was included on the agenda.

ALTERNATIVE ACTION

1. Approve with changes

2. Deny – Reject all bids received for CIP Project EN0098 and direct staff to re-bid the project.

3. Table – Tabling the item would delay the project schedule.

ATTACHMENTS

1. Bid Schedule – 99 Pipeline

2. Construction Inspection Proposal – 4 Creeks

3. Materials Testing Proposal – Krazan

4. Construction Surveying Proposal – Lane Engineers

5. Labor Compliance Proposal – Labor Consultants of California

6. Bid Summary
Reviewed/Approved: TG

324 S. Santa Fe, Suite A
Visalia, California 93292
www.4-creeks.com
April 29, 2026
Mr. Dylan Chimienti
Project Manager
City of Tulare
411 E. Kern Ave.

Tulare, CA 93274
Subject: Tulare-Dayton Improvements, Public Works Inspection and Construction Management Services
Dear Mr. Chimienti,
Our understanding is that the City would like to utilize our services on a full-time basis to perform public works inspection services and part-time basis to perform construction management for the Tulare-Dayton Improvements project. Our understanding is that these services will be needed starting around the beginning of June 2026 and will continue for the 240-Working day duration of the construction contract. We expect the project will end around June 2027. Listed below is the scope of services that we anticipate performing for this project. Additionally, per your request, attached is a fee estimate for these services.

Task 1: Construction Management Services
• Review project submittals, provide comments for revisions or approvals per the project specifications, City standards, or Caltrans specifications. • Our understanding is that the design team will be available for submittal review as needed.

We will distribute submittals to the design team and City staff and compile submittal comments to be returned to the contractor. We will track the status of all submittals. • Coordinate engineer response or respond to contractor Requests for Information. • Coordinate errors and omissions and unforeseen field issues with the Contractor and City and issue Field Change Directives as needed.
• Perform site visits to resolve unforeseen field issues. • Review materials testing reports and verify that materials comply with City of Tulare requirements.
• Review change orders and provide recommendations for City acceptance or rejection. • Review and process contractor Progress Payments.
• Perform daily coordination with the contractor as necessary to keep the project on schedule. • Lead weekly/bi-weekly construction meetings with the City and Contractor. Issue weekly/biweekly meeting minutes for the project. 324 S. Santa Fe, Suite A
Visalia, California 93292
www.4-creeks.com
• Coordinate with the City project manager and other City staff. • Utilize the City’s CMIS program to manage the project documents. • Maintain electronic files in the format and order that the City prefers. • Meet with the City Project Manager to hand off project documents at the end of our scope of work.

We estimate that the Task 1 services can be provided for a Time and Materials Fee of $260,580.

Task 2: Public Works Inspection Services

• Inspect traffic control to make sure it complies with the City’s approved plan for the project. • Coordinate with the City’s project manager or directly with the materials testing company to schedule testing for the project. 4Creeks Inspector will be present for the testing done at the site.
• Verify that materials used on the project match the approved submittals. • Coordinate errors, omissions, and unforeseen field issues with the City project manager for resolution.
• Coordinate required building and special inspections and testing with City departments. • Perform Daily Inspections of the work performed by the contractor and record on the City’s standard documents and the CMIS program. Take pictures of construction progress. • Inspect contractor’s work throughout construction visually and using normal hand tools smart levels, soil probes, tape measures, measuring wheels, etc. • Observe and document any extra work performed on force account for accuracy. Review the contractor's extra work report and sign off when in agreement with the reported time, or provide comments to the CM of any concerns with the reported time. • Construction Inspector will be on site full-time during this period to observe the construction improvements to verify compliance with City requirements. The only times the Inspector will not be onsite full-time will be when performing inspections on any other overlapping City projects. We anticipate there will be some overlap between projects. During this overlap period, 4Creeks also has another inspector in the area who will assist if inspections are needed at both projects at the same time.
• Perform field measurements to verify progress payment amounts. • Meet with the City project manager to hand off project documents at the end of our scope of work.

We estimate that the Task 2 services can be provided for a Time and Materials Fee of $358,080.

Contractor Responsibilities
• Our understanding is that the contractor is responsible for hiring 3rd party testers to complete all commissioning and testing activities.
• Completing all other tasks required by the contract documents. 324 S. Santa Fe, Suite A
Visalia, California 93292
www.4-creeks.com
City of Tulare Responsibilities
• Be involved during construction and provide clear and timely responses to owner-related questions/issues that come up during construction.
• Be present at preconstruction meetings and weekly meetings. • Retain the design engineer to provide submittal review and assist with RFI review on an as needed basis during construction.
• Provide a project DIR number.
• Process invoices for all parties.
• Utilize their on-call lists to retain other subconsultant to perform work that is not in the 4Creeks scope of services.

Total Estimated Fee for Tasks 1 & 2 = $618,660.00
The above services will be billed on a Time and Materials basis in accordance with the on-call contract and attached fee schedule. We will not exceed the fee estimate without prior authorization or direction from the City.

Services Not Included in the Fee Estimate
• Materials Testing
• Building, Electrical and Special Inspections
• Labor Compliance
• Survey Staking
• Fees associated with the CMIS program
• Any work not specifically included in the scope of services While the services above are excluded from this fee estimate, 4Creeks would be happy to provide some of these services on an additional time and materials basis if the City needs assistance. 324 S. Santa Fe, Suite A
Visalia, California 93292
www.4-creeks.com
If you have any questions or need any additional information, please feel free to give us a call to discuss.

Sincerely,
David Dodson Matthew D. Ainley, PE 66233
Construction Manager Principal-In-Charge

Attached: Fee Estimate and Fee Schedule
Approval:

City Signature Date
Construction
Inspector
Sr. Construction
Inspector
Sr. Construction
Inspector Prevailing
Wage
Construction
Inspector Overtime Project Engineer I
Associate
Construction Manager
Sr. Construction
Manager
Principal
Construction
Manager Subconsultant
Reimbursable
Expenses
$165 $180 $205 $305 $95 $139 $196 $216 1.15 Fee Varies
Task 1 - Construction Management
Daily CM services. This task assumes that our CMs will be working a combined 6 hours per day for 240 working days.

Review contract documents 40 60 $17,320
Pre-construction Meeting & Preperation 10 40 $9,230
Maintain Submittal, RFI, & Change Order Logs 100 60 $25,660 Schedule, Submittal and RFI Review 80 160 $42,480
Weekly meetings 40 100 $25,160
Site Meetings with CM, Inspector & Contractor 20 60 $14,540 General Project Coordination 90 260 $63,470
Track Materials Testing and Special Inspections 20 40 $10,620 Review all Contractor invoices and change orders 60 140 $35,780 Project Punchlist & Closeout Items 20 40 $10,620
Admin Management Time 60 $5,700
$260,580
Task 2 - Construction Inspection
Daily Inspections. This task assumes that our Construction Inspector(s) will work 8 hours per day for 240 working days. This also assumes that 50% of this time will be prevailing wage and 50% of the time will be nonprevailing wage. 768 192 960 $358,080 $358,080
$0$0
TOTAL: 768 192 960 0 60 480 960 0 0 0 $618,660
TOTAL
Tulare-Dayton Improvements Project Fee Estimate
Fee Breakdown
D. Dodson & M. Ainley
1 of 1
Effective January 29, 2025
4Creeks, Inc. Fee Schedule – Construction Management and Inspection Fees are based on the median hourly pay rate for employees in each classification, plus indirect costs, overhead, and profit. Multi-Year contracts are subject to any subsequent changes in these rates. Fee schedules for the various billing categories are:

Classification Charges Per
Hour
Classification Charges Per
Hour
Construction Inspection:
(Non-Prevailing Wage) Project/Program Management:

Associate Construction Inspector $130 Project Manager III $199 Construction Inspector $165 Project Manager II $182
Senior Construction Inspector $180 Project Manager I $146 Project Engineer III $122
Construction Management Project Engineer II $105
Associate Construction Manager $139 Project Engineer I $95 Construction Manager $170
Senior Construction Manager $196 Executive:

Principal Construction Manager $216 Executive Level III $232 Executive Level II $211
Public Outreach Coordination Executive Level I $191
Associate Outreach Coordinator $108
Outreach Coordinator $129
Prevailing Wage Rates:

Classification Charges Per
Hour
Classification Charges Per
Hour
Construction Inspection:
(Prevailing Wage)
Land Surveying (Prevailing Wage)
Cont’d.

Construction Inspector $170-$205 3-Man Survey Crew – Tulare County $395 Construction Inspector – Over Time $220-$305 3-Man Survey Crew – Fresno County $395 Construction Inspector – Double Time $260-$325 3-Man Survey Crew – Kings County $395 3-Man Survey Crew – Kern County $395
Land Surveying (Prevailing Wage) 3-Man Survey Crew – Merced County $395 1-Man Survey Crew – Tulare County $200
1-Man Survey Crew – Fresno County $200
1-Man Survey Crew – Kings County $200
1-Man Survey Crew – Kern County $200
1-Man Survey Crew – Merced County $200
2-Man Survey Crew – Tulare County $300
2-Man Survey Crew – Fresno County $300
2-Man Survey Crew – Kings County $300
2-Man Survey Crew – Kern County $300
2-Man Survey Crew – Merced County $300
Direct Charges
At cost plus fifteen percent (15%):
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GEOTECHNICAL ENGINEERING  ENVIRONMENTAL ENGINEERING  CONSTRUCTION TESTING AND INSPECTIONS With Offices Serving the Western United States
215 W. Dakota Avenue  Clovis, CA 93611  559-348-2200  Fax 559-348-2201  www.krazan.com May 4, 2026 KA Proposal No. T26316CAF
Mr. Dylan Chimienti
City of Tulare
411 East Kern Avenue
Tulare, CA 93274
O: (559) 684-4267
Email: [email protected]
RE: SPECIAL INSPECTION & MATERIALS TESTING ESTIMATE
City of Tulare – Dayton Avenue Improvements
Dayton Avenue
Tulare, California
Dear Mr. Davis:

Krazan & Associates (Krazan) appreciates the opportunity to submit this proposal for testing and inspection for the City of Tulare – Dayton Avenue Improvements project.

The following preliminary estimate is based on our experience with similar construction and a review of the provided plans. As more information becomes available, such as the contractor’s construction schedule, we would be happy to revise the project estimate. Variances in the actual schedule may occur during the project and may affect the total cost for our testing and inspection services. Please refer to the attached estimate for further information.

Authorization
We have provided our standard form of agreement with this proposal. Please note that the terms and conditions of the agreement are an integral part of our proposal and fee structure. Please initial, sign and return the agreement to us as our authorization to proceed. Upon receipt, we will execute the contract and return a signed original for your files. Should we be requested to start work prior to our receipt of a mutually acceptable signed contract, with the request received through email or oral communication, and our subsequent start of work, will constitute your express or implied acceptance of the terms and conditions of our attached Agreement.

In the event that a Purchase Order will be issued as part of the authorization process for us to proceed, the Purchase Order must specifically incorporate this proposal by reference. By issuing a Purchase Order authorizing our services, it is agreed that the terms of the Purchase Order shall be null and void even where stated otherwise on the Purchase Order and that the terms of the attached agreement shall prevail.

Again, we appreciate the opportunity to submit this estimate and we believe you will be pleased with the selection of our firm. The following pages include the anticipated scope of work, hourly rates and estimate of costs for our services, general conditions, and contract. If you have any questions, or if we can be of further assistance, please do not hesitate to call our office at 559-348-2200.

The following items are included as an Attachment:

Attachment A – Budget Estimate
Attachment B – Agreement for Engineering Consulting Services, Construction Observation, & Materials Testing Services (Pages 1 – 8)
Respectfully submitted,

KRAZAN & ASSOCIATES
Ian G. Beatty
Project Manager
Testing & Inspection Division
City of Tulare, Dayton Avenue Improvements KA Proposal No. T26316CAF

QUALITY ASSURANCE TESTING & INSPECTIONS

TESTING & INSPECTION
No. Days No. Units Unit Rate Cost
Building Pad Compaction Testing 0 2 $140.00 $0.00
Utility Line Trench Backfill Compaction Testing 90 4 $140.00 $50,400.00 Pavement Area Sugrade Soil Compaction Testing 50 2 $140.00 $14,000.00 Pavement Area Aggregate Base Compaction Testing 30 2 $140.00 $8,400.00 Asphalt Batch Plant Sampling 11 4 $85.00 $3,740.00
Asphalt Compaction Testing 11 8 $140.00 $12,320.00
Asphalt Compaction Testing (Overtime) 11 2 $210.00 $4,620.00 Misc. Subgrade Soil Compaction Testing 10 2 $140.00 $2,800.00 Soil/Agg Base/Concrete Sample Pickup 20 2 $75.00 $3,000.00 Concrete Inspection and Sampling 10 2 $135.00 $2,700.00 Masonry Inspection and Sampling 0 4 $140.00 $0.00
Epoxy/Achor Bolt Inspection 0 2 $140.00 $0.00
Welding / Bolting Inspection 0 4 $140.00 $0.00
Project Management 10 1 $100.00 $1,000.00
Report Preparation 10 2 $75.00 $1,500.00
Registered Civil Engineer Review 10 1 $150.00 $1,500.00 $105,980.00
Laboratory Testing No. Units Unit Rate Cost
Soil Maximum Density Proctor (per material) 25 $200.00 $5,000.00 Aggregate Base Maximum Density Proctor (per material) 5 $200.00 $1,000.00 Aggregate Base Class 2 Suitability Testing (Gradation, SE, R-value, Durability) 2 $695.00 $1,390.00 Asphalt Production Startup Evaluation 0 $2,800.00 $0.00 Asphalt Oil Content by Ignition Oven 11 $225.00 $2,475.00 Asphalt Theoretical Specific Gravity/Air Voids 4 $300.00 $1,200.00 Aphalt Hamburg Wheel Tracker 0 $1,800.00 $0.00
Asphalt Aggregate Gradation 11 $175.00 $1,925.00
Concrete Compressive Strength (per set of 5) 10 $125.00 $1,250.00 Masonry Compressive Strength (per set of 5) 0 $125.00 $0.00 $14,240.00
$120,220.00
Krazan Quality Assurance Testing Estimate
Inspection Labor Subtotal
Laboratory Subtotal
TOTAL ESTIMATED QUALITY ASSURANCE COSTS:

KRAZAN and Associates, Inc.

City of Tulare – Dayton Avenue Improvements

1. 2.

3. 4.

5. 6.

7. 8. Services initiated between the hours of 7:00 a.m. and 3:30 p.m. for Regular, non-PW projects, and between 4:00 AM and 2:00 PM for Prevailing Wage projects,will be performed at the standard rates presented in the PROPOSAL and Fee Schedule. Services initiated outside of these hours will be billed at the appropriate rate plus a premium of 12.5 percent. Services rendered in excess of 8 hours (up to 12 hours) on any week day and on Saturdays will be billed at time and a half the hourly rate. Services rendered in excess of 12 hours on any weekday, on Holidays, on Sundays, or in excess of 8 hours on Saturdays or will be charged at double the hourly rate.

KA Proposal T26316CAF

FEE STRUCTURE
We will perform the services listed above on a time and material basis in accordance with our 2026 standard rate schedule. A detailed breakdown of this cost estimate is attached as Attachment A. Costs for construction testing and inspection services are highly dependent on contractors schedule; weather, overlapping of work, additional inspections required by the building official and other factors. Krazan & Associates does not control the work or production rate. Actual costs will vary due to the frequency of scheduling by others. Therefore the quantities listed in our cost estimate should be considered approximate. The estimate provided herein does not imply a lump sum fee, not-to-exceed fee or a guaranteed maximum price. Consistent with good engineering practice, we will work with the contractor to keep inspection costs at a minimum. If provided with a construction schedule this cost estimate can be further refined and quantified.

COORDINATION
Additional services requested outside of our stated scope of work will be billed in excess of the estimated amount at our current rates. A price list for these services will be provided upon request.

Services will be performed on a “time and materials” basis. Any total estimates provided are merely estimates and are not a guaranteed maximum price. A two (2) hour minimum charge applies to all inspection services. All inspections performed will be billed on a portal to portal basis unless specifically noted otherwise. Twelve (12) hours notice of cancellation required on all jobs.

Inspections which are cancelled with less than twenty-four (24) hours’ notice, or after an inspector has been dispatched to the project site, will be charged the minimum fee associated with the type of inspection or testing requested.

All concrete samples will be cast in 4-inch diameter x 8-inch high molds unless otherwise agreed.

Additional samples for contractor convenience testing and/or field cure samples are not included in this estimate.

Contractor will provide curing facilities in accordance with ASTM requirements for initial curing (the first 24 hours after specimens are cast) and protection of concrete test specimens on site.

The stated labor rates Do reflect the current General Prevailing Wage Determination made by the State of California Director of Industrial Relations Pursuant to California Labor Code Part 7, Chapter 1, Article 2, Sections 1770, 1773 and 1773.1. Determination : NC-63-3-9-2024-1, dated June 25, 2025.

KRAZAN and Associates, Inc. KA Proposal # TI 316-26
CA COMT 2026.2 Page 1 of 9 __________/__________
T26316CAF City of Tulare Dayton Avenue Improvements Contract Please initial

AGREEMENT FOR

CONSTRUCTION OBSERVATION AND MATERIALS TESTING SERVICES THIS AGREEMENT is made by and between Krazan & Associates, a California corporation, with its principal office located at 215 West Dakota Avenue, Clovis, California, 93612, hereinafter referred to as “Consultant”, and City of Tulare, a governmental entity, whose principal address is 411 East Kern Avenue, Tulare, CA 93274, hereinafter referred to as “Client” (each referred to herein individually as a “Party” and collectively as the “Parties”). This Agreement between the parties consists of the TERMS AND CONDITIONS (below), the attached Proposal titled “City of Tulare – Dayton Avenue Improvements,” file number T26316CAF, dated May 4, 2026 (“Proposal”), and any exhibits or attachments cited in the Proposal, which are incorporated in full by this reference.,”WITNESSETH, that the parties hereto, in consideration of the mutual promises and benefits flowing to each of the parties hereto as hereinafter stated, do mutually agree as follows:

1. DEFINITIONS

1.1. Contract Documents. This Agreement between Client and Consultant, including any Work Authorization, addenda, amendments, or supplementary instructions, which has been accepted by both Parties.

1.2. Contractor. The contractor or contractors, including its/their subcontractors of every tier, retained to construct the Project for which Consultant is providing Services under this Agreement.

1.3. Day(s). Calendar day(s) unless otherwise stated.

1.4. Hazardous Materials. The term Hazardous Materials means any toxic substances, chemicals, radioactivity, pollutants or other materials, in whatever form or state, known or suspected to impair the environment in any way whatsoever.

Hazardous Materials include, but are not limited to, those substances defined, designated or listed in any federal, state or local law, regulation or ordinance concerning hazardous materials, toxic substances or pollution.

1.5. Services. The professional services provided by Consultant as set forth in this Agreement, as included in Consultant’s Proposal and any Change Order or Amendment to this Agreement agreed to in writing by both Parties.

1.6. Work. The labor, materials, equipment and services of the Contractor required to complete the project in accordance with the approved plans and specifications, and building code requirements.

1.7. Fee Schedule. Consultant’s standard annual fee schedule unless a project-specific fee schedule is provided.

1.8. Inspection (or Observation). Visual determination of conformance with specific or, on the basis of Consultant’s professional judgment, general requirements.

1.9. Testing. Measurement, examination, performance of tests, and any other activities to determine the characteristics or performance of materials.

1.10. Governmental Agencies. All federal, state and local agencies having jurisdiction over the Project.

1.11. Work Authorization. Client may issue authorizations to proceed consisting of emails, Work Orders, Task Orders, Service Orders, Purchase Orders (each a “Work Authorization”). The Work Authorization shall reference this Agreement and the Proposal. Any terms and/or conditions contained in, referenced, or attached to the Work Authorization shall be without effect.

2. STANDARD OF PERFORMANCE; DISCLAIMER OF WARRANTIES

2.1. Standard of Care. Subject to the limitations inherent in the agreed Scope of Services as to the degree of care, the amount of time and expenses to be incurred, and subject to any other limitations contained in this Agreement, Consultant shall perform its Services in a manner consistent with the professional standard of care defined as the ordinary and reasonable care usually exercised by other professional consultants providing similar services on the same type of project, in the same geographic locale, under similar circumstances and conditions at the time the Services are performed.

2.2. No Warranty. Client acknowledges the inherent risks in property transactions, site development, and construction activities, understanding that Consultant’s services do not eliminate these risks. Client understands that Consultant’s opinions on geologic, environmental, site, or structure conditions—including those associated with air, soil, groundwater, hazardous materials, and code compliance—are based on limited data and accessibility. Actual conditions may vary from those observed during site reconnaissance, may be obscured by site constraints or building elements, and may change over time, despite Consultant’s exercise of due professional care. Consultant’s tests and observations of the site conditions or Work are not a guarantee of the quality of Work and do not relieve other parties from their responsibility to perform their Work in accordance with applicable plans, specifications and requirements. This Agreement does not constitute a warranty, guarantee, express or implied, or create a fiduciary responsibility by Consultant to Client.

3. SCOPE OF SERVICES

3.1. Basic Services. Consultant will perform the Services set forth in the Proposal.

3.2. Level of Service. Consultant offers different levels of professional consulting services to suit the desires and needs of different clients. Although risk associated with site acquisition or development can never be eliminated, more detailed and extensive investigations yield more information, but at increased cost. Risks associated with construction defects can never be eliminated; however, more detailed and extensive observations, inspections and testing services yield more information, but at increased cost. It is for these reasons that Client must determine the level of Services adequate for its purposes. Client’s issuance of a Work Authorization is confirmation that Client has reviewed the Proposal and has determined that it does not need or want a greater level of Services than that specifically identified in the Proposal.

3.3. Changes in Scope. If Consultant provides Client with a written notice of a change in the Proposal or the Services, it will become an Amendment to this Agreement unless Client objects in writing within 5 business days after receipt. All Services CA COMT 2026.2 Page 2 of 9 __________/__________
T26316CAF City of Tulare Dayton Avenue Improvements Contract Please initial performed by Consultant on the Project, whether requested and/or authorized by Client by oral or written communication, are subject to the terms and limitations of this Agreement. If Services are performed, but the parties do not reach agreement concerning modifications to the Proposal, Services or compensation, then the terms and limitations of this Agreement apply to such Services, except for the payment terms. The parties agree to resolve disputes concerning modifications to scope or compensation pursuant to Article 15, “Disputes.”

3.4. Changes in Schedule. Because of the uncertainties inherent in the Services contemplated, time schedules are only estimated schedules and are subject to revision unless otherwise specifically stated in the Proposal.

3.5. Licenses. Consultant will procure and maintain business and professional licenses and registrations necessary to provide its Services.

3.6. Sampling, Inspection & Test Locations. Unless specifically stated otherwise, the Scope of Services does not include surveying the Site or precisely identifying sampling, inspection or test locations, depths or elevations. Sampling, inspection and test locations, depths and elevations will be based on field estimates and information furnished by Client and its representatives. Unless stated otherwise in the report, such locations, depths and elevations are approximate.

3.7. Sample Retention & Disposal. All samples shall remain the property of the Client and, in the absence of evidence of contamination, Consultant shall dispose of samples for the Client. All soil and construction materials samples collected during construction phase services will be disposed of or destroyed at the completion of testing unless Consultant is otherwise advised by Client. Samples may be held for up to a thirty (30) day period at Consultant’s discretion or at the Client’s request received in writing before the samples are tested. Upon request, Consultant will deliver samples to the Client or will store them for an agreed delivery or storage charge. Client will promptly pay and be responsible for the analytical testing, removal and lawful disposal of all contaminated samples.

3.8. Site Protection. Consultant will take reasonable precautions to limit damage or disturbance to the Project Site or Work due to the performance of Services, but Client understands that some damage or disturbance may necessarily occur in the normal course of Services, and this Agreement does not include repair of such damage unless specifically stated in the Proposal.

3.9. Excluded Services.

3.9.1. General. Consultant’s Services under this Agreement include only those Services specified in the Proposal.

3.9.2. Hazardous Materials. Unless identified as a specific task within the Proposal, Consultant’s Services specifically excludes the investigation, detection, prevention or assessment of the presence of Hazardous Materials in the air, surface waters, groundwater, soil and structures.

4. CONSTRUCTION PHASE SERVICES

4.1.1. Scheduling. Client or their designated agent shall cause all required tests and inspections of the site, materials and work performed by their Contractor to be scheduled no less than one full work day prior to the time when Consultant is to perform their scheduled tests or inspections. No claims for loss, damage or injury shall be brought against Consultant by Client or any third party under contract to Client for tests or inspections not performed due to inadequate scheduling notice provided to the Consultant by Client.

4.1.2. Authority of Consultant. Consultant will report observations and data to the Client and the General Contractor, and where required to the Building Official, and will specifically note any observed work or test results to the Client or Client’s representative, which, in Consultant’s opinion, does not conform with plans, specifications, and codes applicable to the Project. Consultant has no right or responsibility to approve, accept, reject, or stop work of any agent of the Client. Such rights are reserved solely for the Client. Consultant does not warrant or guarantee that all of the Work performed by Contractor meets the requirements of the approved plans and specifications for such Work or the Consultant’s recommendations. Consultant shall not be responsible for job site safety or the evaluating and reporting of job conditions concerning health, safety or welfare. No action of Consultant or Consultant’s representative can be construed as altering any Agreement between the Client and others.

4.1.3. Contractor’s Responsibilities. Contractor has sole responsibility for the means, methods, techniques or sequences during the performance of its Work. Client understands and agrees that Contractor, not Consultant, has sole responsibility for completion of the Work in accordance with the approved plans and the building code requirements, and for the safety of persons and property at the Project Site. Consultant will not supervise or direct Contractor’s Work, or be liable for any failure of Contractor to complete its Work in accordance with the Project’s plans, specifications and applicable codes, laws and regulations

4.1.4. Review of Contractor’s Submittals. If included in the Scope of Services, Consultant will review and take appropriate action on the Contractor’s submittals, such as shop drawings, product data, samples, and other required submittals. Consultant will review such submittals solely for general conformance with Design Consultant’s design, and will not include review for the following, all of which will remain the responsibility of the Contractor: accuracy or completeness of details, quantities or dimensions; construction means, methods, sequences or procedures; coordination among trades; or construction safety.

4.1.5. Site Meetings & Visits. When providing geotechnical engineering services during the construction phase of the project, Consultant will participate in job site meetings as requested by Client, and, unless otherwise requested by Client, visit the site at times specified in the Proposal or, if not specified in the Proposal, at intervals as Consultant deems appropriate to the various stages of construction to observe the geotechnical conditions encountered by Contractor and the progress and quality of the geotechnical aspects of the Work. Based on information obtained during such visits and on such observations, Consultant may inform Client of the progress of the geotechnical aspects of the Work. Client understands CA COMT 2026.2 Page 3 of 9 __________/__________
T26316CAF City of Tulare Dayton Avenue Improvements Contract Please initial that Consultant may not be on site continuously; and, unless expressly agreed otherwise, Consultant will not observe all of the Work. Consultant will report any observed geotechnical related Work to the Client which, in Consultant’s professional opinion, does not conform with plans and specifications.

4.1.6. Variation of Material Characteristics and Conditions. Observations and standardized sampling, inspection and testing procedures employed by Consultant will indicate conditions of materials and construction activities only at the precise location and time where and when Services were performed. Client recognizes that conditions of materials and construction activities at other locations may vary from those measured or observed, and that conditions at one location and time do not necessarily indicate the conditions of apparently identical material(s) at other locations and times. Services of Consultant, even if performed on a continuous basis, should not be interpreted to mean that Consultant is observing, verifying, testing or inspecting all materials on the Project. Consultant is responsible only for those data, interpretations, and recommendations regarding the actual materials and construction activities observed, sampled, inspected or tested, and is not responsible for other parties' interpretations or use of the information developed. Consultant may make certain inferences based upon the information derived from these procedures to formulate professional opinions regarding conditions in other areas.

4.1.7. Tests. Tests performed by Consultant on finished Work or Work in progress are performed intermittently and indicate the general acceptability of the Work on a statistical basis. Consultant’s reporting of the results of tests and observations of the contractor’s Work are not issued as or intended to be a guarantee of the quality of Work and do not relieve other parties from their responsibility to perform their Work in accordance with applicable plans, specifications and requirements.

4.1.8. Certifications. Client agrees not to require that Consultant execute any certification with regard to Services performed or Work tested and/or observed under this Agreement unless: 1) Consultant believes that it has performed sufficient Services to provide a sufficient basis to issue the certification; 2) Consultant believes that the Services performed or Work tested and/or observed meet the criteria of the certification; and 3) Consultant has reviewed and approved in writing the exact form of such certification prior to execution of this Agreement. Any certification by Consultant is limited to an expression of professional opinion based upon the Services performed by Consultant, and does not constitute a warranty or guarantee, either express or implied.

4.2. Final Report. At the conclusion of Construction Phase Services, Consultant will provide Client with a written report summarizing the tests and observations, if any, made by Consultant. Issuance of the Final Report is contingent on payment in full by Client for all undisputed invoices and services provided by Consultant.

5. CLIENT’S RESPONSIBILITIES
In addition to payment for the Services performed under this Agreement, Client agrees to:

5.1. Cooperation. Assist and cooperate with Consultant in any manner necessary and within its ability to facilitate Consultant’s performance under this Agreement.

5.2. Representative. Designate a representative with authority to receive all notices and information pertaining to this Agreement, communicate Client’s policies and decisions, and assist as necessary in matters pertaining to the Project and this Agreement. Client’s representative will be subject to change by written notice.

5.3. Rights of Entry. Provide access to and/or obtain permission for Consultant to enter upon all property, whether or not owned by Client, as required to perform and complete the Services. Consultant will operate with reasonable care to minimize damage to the Project Site(s) and any improvement located thereon. However, Client recognizes that Consultant’s operations and the use of investigative equipment may unavoidably alter conditions or affect the environment at the existing Project Site(s). The cost of repairing such damage will be borne by Client and is not included in the fee unless otherwise stated in the Proposal. If Client desires or requires Consultant to restore the site to its former condition, upon written request Consultant will perform such additional work as is necessary and Client agrees to pay to Consultant the cost thereof.

5.4. Relevant Information. Supply Consultant with all information and documents in Client’s possession or knowledge which are relevant to Consultant’s Services. Client warrants the accuracy of any information supplied by it to Consultant, and acknowledges that Consultant is entitled to rely upon such information without verifying its accuracy. Prior to the commencement of any Services in connection with a specific property, Client will notify Consultant of any known potential or possible health or safety hazard existing on or near the Project Site, with particular reference to Hazardous Materials or conditions.

5.5. Project Information. Client agrees to provide Consultant within 5 days after written request, a correct statement of the recorded legal title to the property on which the Project is located and the Client and/or Owner’s interest therein, and the identity and address of any lender.

6. CHANGED CONDITIONS
If Consultant discovers conditions or circumstances that it had not contemplated at the commencement of this Agreement or any subsequent Work Authorization or Change Order, such as, but not limited to, unanticipated subsurface conditions, underground obstructions, environmental hazards, or site access limitations, Consultant will notify Client in writing of the Changed Conditions. Client and Consultant agree that they will then renegotiate in good faith the terms and conditions of this Agreement or a Work Authorization, as applicable. If Consultant and Client cannot agree upon amended terms and conditions within 30 days after notice, Consultant may terminate this Agreement and be compensated as set forth in Article 14, “Termination.”

7. PAYMENTS TO CONSULTANT

7.1. Basic Services. Consultant will perform its Services on either a Lump Sum/Fixed Fee or Time-and-Materials/Timeand-Expense basis as identified in the Proposal.

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T26316CAF City of Tulare Dayton Avenue Improvements Contract Please initial

7.2. Additional Services. Any additional services performed under this Agreement, including increased hours or units for those services expressly identified in the Proposal, and any additionally requested tasks, will be provided on a Time-andMaterials basis at the rates established for the project, above and beyond any prior quoted estimate, not-to-exceed or lump sum fee unless otherwise specifically agreed to in writing by both parties.

7.3. Estimate of Fees. Consultant’s fee estimates are based on its reasonable judgment and professional experience; however, any fee or cost estimate is not a guarantee of total cost. Client acknowledges that changes in scope, schedule, site conditions, contractor performance, and other unforeseen factors may affect the ability to complete Services within the estimated cost. Construction materials testing and inspection services, in particular, are subject to contractor schedules, weather, and overlapping work. Consultant’s Services shall continue on a time and expense basis to completion of the required Services unless directed otherwise by Client. Furthermore, where a provision of a “not to exceed” limitation is included in the Proposal it is not a guarantee that the Services will be completed for that amount; rather, it indicates that Consultant will not incur fees and expenses chargeable to Client in excess of the “not to exceed” limitation amount without notifying Client in writing that the “not-to-exceed” amount has been reached and that Services will continue on a Time-and-Materials basis unless directed by Client to discontinue any further Services.

7.4. Rates.

7.4.1. Time-and-Materials Rates. Client will pay Consultant at the rates set forth in the Proposal, and absent any project-specific rates, in accordance with Consultant’s annual Fee Schedule. Rates presented in the Fee Schedule and those presented in Proposal shall be considered to be the Standard Rates. Rates are subject to annual cost of living adjustment.

7.4.2. Prevailing Wage. Client shall, when applicable, specifically inform Consultant in writing at the time of request for a Proposal that prevailing wage regulations apply to the Project. When Consultant has been properly notified of the requirement to comply with prevailing wage law, all costs required for compliance with such requirements will be included in the applicable quoted price. In the absence of notification of Prevailing Wage requirements at the time of request for proposal, the rates presented in the Proposal are not applicable for projects where Prevailing Wage or other collective bargaining labor and benefits rates apply, unless so specifically stated. Unless Client specifically informs Consultant in writing at the time of request for a Proposal that prevailing wage regulations apply to the Project and Consultant confirms the inclusion of Prevailing Wage rates in the project-specific Proposal, and there is a subsequent determination that prevailing wage applies, Client will reimburse, defend, indemnify and hold harmless Consultant from and against any liability resulting from a subsequent determination that prevailing wage regulations cover the Project, including but not limited to all added labor costs, administrative costs, fines and attorneys’ fees.

7.4.3. Changes to Rates. Client and Consultant agree that the rates in the Proposal and the Fee Schedule apply through December 31 of the applicable year for non-prevailing wage projects, and through June 30 for California Prevailing wage projects, unless stated otherwise in the Proposal. Rates are subject to periodic review and amendment to reflect Consultant’s then-current fee structure. Unless otherwise provided for in the Proposal, if non-prevailing wage projects extend beyond December 31 of the year the services began, the applicable rates shall be adjusted annually by the greater of: (a) five percent (5%) or (b) the Consumer Price Index (CPI) for the geographic area where services are provided. For Prevailing Wage projects, Consultant’s rates shall be revised in accordance with determinations made by the governing agency, including mandatory increases effective July 1. Consultant’s billing rates will be increased proportionally to reflect any mandated labor and/or employer payment rate increases, unless otherwise stated in the Proposal. In the event that the cost of fuel increases 10 percent or more over the course of the project a fuel surcharge may be imposed to recoup the added costs incurred by Consultant. Consultant will give Client at least 30 days written notice of any changes. Unless Client objects in writing to the proposed amended fee structure within 30 days of notification, the amended fee structure will be incorporated into this Agreement and shall supersede any prior fee structure. If Client timely objects to the amended fee structure, and Consultant and Client cannot agree upon a new fee structure within 30 days after notice, Consultant may terminate this Agreement and be compensated as set forth under Article 14, “Termination.”

7.5. Expenses. Miscellaneous out-of-pocket charges, drilling permits, parking, air fare, car/equipment rental, mailing, shipping, subcontractor charges, etc., will be charged on a cost plus twenty percent (20%) overhead basis. On remote jobs or at fabrication facilities, subsistence, when not furnished, will be an additional charge. Regulatory file access fees or other document acquisition fees incurred on Environment Site Assessment projects, that are not specifically identified in the Proposal as included in the Lump Sum fee, will be an additional charge.

7.6. Basis of Charges for Construction Phase Services.

7.6.1. Billing Increments. A two (2) hour minimum, portal to portal charge per call, applies to all Consultant Services. Services beyond the initial minimum billing increment will be billed in increments of one (1) hour for the first 8 hours and at increments of one hour thereafter for each day’s Services for each assigned technician, unless modified in the Proposal.

7.6.2. Billing Rate Premiums – Shift Differential in Northern California. Services initiated between the hours of 4:00 a.m. and 2:00 p.m. will be performed at the standard rates presented in the Proposal and annual fee schedule with inclusion of rate premiums for weekends and holidays. Services initiated outside of these hours will be billed at the appropriate rate plus a shift differential premium of twenty percent (20%).

7.6.3. Billing Rate Premiums - Shift Differential in Southern California. Services provided before 6:00 a.m. and after 5:00 p.m. on weekdays are subject to overtime rates.

7.6.4. Billing Rate Premiums - Overtime. Services rendered in excess of 8 hours on any weekday (excluding holidays) and up to 8 hours on Saturdays will be billed at one and one-half times (x 1.5) the standard hourly rate. Services CA COMT 2026.2 Page 5 of 9 __________/__________
T26316CAF City of Tulare Dayton Avenue Improvements Contract Please initial rendered in excess of 12 hours on any weekday, in excess of 8 hours on a Saturday, on Sundays or holidays will be billed at double (x 2) the standard rate.

7.6.5. Late Cancellation. All cancellations without at least 4 hour notice of cancellation will be subject to the minimum charge per technician per day canceled. Notice of cancellation must be received by our office during our office hours of 8:00 am to 4:00 pm Monday through Friday (excluding holidays) and cannot be left on the voice mail system.

7.7. Payment Timing; Late Charge. Consultant shall invoice Client periodically, not more than once every two weeks, for Services rendered. All invoices are due and payable upon receipt of invoice. If Consultant approves Client for 30-day payment terms, Client shall pay all undisputed amounts within thirty (30) days of the invoice date. The invoice amounts shall be presumed to be correct unless Client notifies Consultant in writing within fourteen (14) calendar days of the invoice date, specifying any disputed amounts and the basis for disagreement. Client shall timely pay all undisputed portions. Both parties shall promptly attempt to resolve any disputed portion in good faith. Payment thereafter will first be applied to accrued interest on undisputed charges, then to the oldest unpaid principal balance, regardless of any project or invoice designation by Client. All amounts unpaid when due will bear interest at the lesser of 2% per month or the highest rate permitted by law, accruing from the invoice date until paid. In the event that the account becomes delinquent, Consultant may: (a) require full payment of all outstanding invoices, regardless of project, prior to releasing field notes, test data, photographs, analyses, or reports; (b) withhold final reports or other certified deliverables until all undisputed amounts are paid; and (c) recover from Client all costs incurred in collecting delinquent amounts, including attorneys’ fees, court costs, and collection agency fees.

Consultant shall not be bound by any provision or agreement conditioning Consultant’s right to payment upon payment by a third party. Client’s failure to timely pay shall constitute a material breach of this Agreement. Consultant may suspend work and withhold all work product, including verbal consultation, until invoices are paid in full. If the Client requests back-up data or changes to the format of the standard invoice, an administrative fee of $100 per invoice may be charged plus $1 per page of back-up data.

8. ALLOCATION OF RISK

8.1. Limitation of Liability. In light of the limited ability of the Consultant to affect the risks inherent in the Project and of the disparity between Consultant’s fee and the potential liability for problems with the Project, to the greatest extent permitted by law,the total cumulative liability of Consultant, its subconsultants and subcontractors, and all of their respective shareholders, directors, officers, employees and agents (collectively “Consultant Entities”), to Client and its successors, all parties included as additional insured on Consultant’s insurance policies and all of their respective shareholders, directors, officers, employees and agents (collectively “Client Entities”) arising from or relating to Services under this Agreement, including attorney’s fees due under this Agreement, will not exceed the gross compensation received by consultant under this agreement or two hundred fifty thousand dollars ($250,000) , whichever is greater, for all lawsuits, claims or actions that allege professional errors or omissions in Consultant’s Services, whether alleged to arise in tort, contract, warranty, or other legal theory; provided, however, that such liability is further limited as described below. This limit is an aggregate limit with respect to all services on the project, whether provided under this, prior or subsequent agreements, unless modified in writing, agreed to and signed by authorized representatives of the parties. Upon Client’s written request, Consultant and Client may agree to increase the limitation to a greater amount in exchange for a negotiated increase in Consultant’s fee, provided that they amend this Agreement in writing as provided in Article 16 Section 16.5. Consultant and Client also agree that the Client will not seek damages in excess of the limitations indirectly through suits with other parties who may join Consultant as a third-party defendant.

8.2. Indemnification. Client will indemnify, defend and hold harmless Consultant, its subconsultants and subcontractors, and all of their respective shareholders, directors, officers, employees and agents (collectively “Consultant Indemnitees”) from and against any and all claims, suits, liabilities, damages, expenses (including without limitation attorney’s fees and costs of defense) or other losses (collectively “Liabilities”) except to the extent caused by the sole negligence or willful misconduct of Consultant. In addition, except to the extent caused solely by Consultant’s negligence, Client waives any claim against Consultant, and to the maximum extent permitted by law, expressly agrees to defend, indemnify and hold harmless Consultant Indemnitees from and against any and all Liabilities, arising from or related to the existence, disposal, release, discharge, treatment or transportation of Hazardous Materials, or the exposure of any person to Hazardous Materials, or the degradation of the environment due to the presence, discharge, disposal, release of or exposure to Hazardous Material.

8.3. Consequential Damages. Neither Client nor Consultant will be liable to the other for any special, consequential, incidental or penal losses or damages of whatever nature including but not limited to losses, damages or claims related to the unavailability of property or facilities, shutdowns or service interruptions, loss of use, loss of profits, loss of revenue, or loss of inventory, or for use charges, cost of capital, or claims of the other Party and/or its customers, which may arise directly or indirectly as a result of the Services provided by Consultant under this Agreement.

8.4. Continuing Agreement. The provisions of this Article 8, “Allocation of Risk,” will survive the expiration or termination of this Agreement. If Consultant provides Services to Client that the parties do not confirm through execution of an amendment to this Agreement, the provisions of this Article 8 will apply to such Services as if the parties had executed an amendment.

8.5. No Personal Liability. Client and Consultant intend that Consultant’s Services will not subject Consultant’s individual employees, officers or directors to any personal liability. Therefore, and notwithstanding any other provision of this Agreement, Client agrees as its sole and exclusive remedy to direct or assert any claim, demand or suit only against the business entity identified as “Consultant” on the first page of this Agreement.

CA COMT 2026.2 Page 6 of 9 __________/__________
T26316CAF City of Tulare Dayton Avenue Improvements Contract Please initial

9. INSURANCE. Consultant carries Statutory Workers’ Compensation and Employer’s Liability Insurance with limits of $1,000,000 each accident, each disease and policy; Commercial General Liability (CGL) Insurance for bodily injury and property damage with limits of $1,000,000 each occurrence products-complete operations aggregate $2,000,000 and $2,000,000 general aggregate; Automobile Liability (AL) Insurance, including liability for all owned, hired and non-owned vehicles with limits of $1,000,000 combined single limit (each accident); and Professional Liability Insurance with limits of $1,000,000 per claim and annual aggregate. Aggregates are per policy, not per project. Certificates of insurance will be furnished upon written request but may not be processed unless accompanied or preceded by a signed agreement. Client agrees not to withhold payment to Consultant for Client’s failure to make such a timely request and such requests may not be honored if made after final completion of authorized services. Waiver of Subrogation and Additional Insured endorsements are not included. Inclusion of waiver of subrogation and additional insured endorsements, available for commercial general liability and auto liability only, will be considered and may be provided for an additional administrative fee. Waivers of subrogation endorsement are not issued for worker’s compensation and professional liability policies. Consultant assumes the risk of damage caused by Consultant’s personnel to Consultant’s supplies and equipment.

10. OWNERSHIP AND USE OF DOCUMENTS

10.1. Client Documents. All documents provided by Client will remain the property of Client. Consultant will return all such documents to Client upon request, but may retain file copies of such documents.

10.2. Consultant’s Documents. Unless otherwise agreed in writing, all documents and information prepared by Consultant or obtained by Consultant from any third party in connection with the performance of Services, including, but not limited to, Consultant’s reports, boring logs, maps, technical data, field data, field notes, drawings and specifications, laboratory test data and other similar documents, including those issued as electronic files and those issued as printed (hard) copies, (collectively “Documents”) are instruments of professional service, not products, and are the property of Consultant. Consultant has the right, in its sole discretion, to dispose of or retain the Documents. Consultant reserves the right to copyright such documents; however, such copyright is not intended to limit the Client's use of the services provided under this Agreement other than as described below.

10.3. Distribution and Use of Documents.

10.3.1. Distribution. All Documents prepared by Consultant are solely for use by Client and will not be provided by either Party to any other person or entity, other than lending institutions for financing of the project, the project Architect, Structural Engineer, General Contractor and Building Department, without Consultant’s prior written consent. Except as set forth herein, neither Consultant nor Client will disclose, disseminate or otherwise provide such reports or information except as required for the financing and design of the project, completion of Contractor’s Work, or the monitoring of the Project by Governmental Agencies.

10.3.2. Use by Client. Client has the right to reuse the Documents for purposes reasonably connected with the Project for which the Services are provided, including without limitation design and licensing requirements of the Project, subject to any specific reliance or reuse limitations presented in the Document. Client shall not reuse any Documents provided by Consultant hereunder other than for the project defined by the Proposal without prior written consent of Consultant, which shall not be unreasonably withheld.

10.3.3. Use by Consultant. Consultant retains the right of ownership with respect to any patentable concepts or copyrightable materials arising from its Services and the right to use the Documents for any purpose.

10.4. Unauthorized Reuse or Alteration. No party other than Client may rely on, and Client will not represent to any other party that it may rely on, Documents without Consultant’s express prior written consent and receipt of additional compensation. Client will not permit disclosure, mention, or communication of, or reference to the Documents in any offering circular, securities offering, loan application, real estate sales documentation, or similar promotional material without Consultant’s express prior written consent. Modification of the aforementioned Documents by Client without the Consultant's written permission shall be at the Client’s sole risk, and the Consultant shall have no liability with respect to such modification.

Client waives any and all claims against Consultant resulting in any way from the unauthorized reuse or alteration of Documents by itself or anyone obtaining them through Client. Client will defend, indemnify and hold harmless Consultant from and against any claim, action or proceeding brought by any party claiming to rely upon information or opinions contained in Documents provided to such person or entity, published, disclosed or referred to, or altered without Consultant’s prior written consent.

11. RELATIONSHIP OF THE PARTIES
Consultant will perform Services under this Agreement as an independent contractor.

12. ASSIGNMENT AND SUBCONTRACTS
During the term of this Agreement and following its expiration or termination for any reason, neither Party may assign this Agreement or any right or claim under it, in whole or in part, without the prior written consent of the other Party, except for an assignment of proceeds for financing purposes. Any assignment that fails to comply with this paragraph will be void and of no effect. Consultant may subcontract for the services of others without obtaining Client’s consent if Consultant deems it necessary or desirable for others to perform certain Services.

13. SUSPENSION AND DELAYS

13.1. Procedures. Client may, at any time by 10 days written notice suspend performance of all or any part of the Services by Consultant. Consultant may terminate this Agreement if Client suspends Consultant’s Services for more than 60 days and Client will pay Consultant as set forth under Article 14, “Termination.” If Client suspends Consultant’s Services, or if Client or others delay Consultant’s Services, Client and Consultant agree to equitably adjust: (1) the time for completion of the Services; and (2) Consultant’s compensation in accordance with Consultant’s then current Fee Schedule for the additional CA COMT 2026.2 Page 7 of 9 __________/__________
T26316CAF City of Tulare Dayton Avenue Improvements Contract Please initial labor, equipment, and other charges associated with maintaining its workforce for Client’s benefit during the delay or suspension, or charges incurred by Consultant for demobilization and subsequent remobilization.

13.2. Liability. Consultant is not liable to Client for any failure to perform or delay in performance due to circumstances beyond Consultant’s control, including but not limited to pollution, contamination, or release of hazardous substances, strikes, lockouts, riots, wars, fires, flood, explosion, “acts of God,” adverse weather conditions, acts of government, labor disputes, delays in transportation or inability to obtain material and equipment in the open market.

14. TERMINATION

14.1. Termination for Convenience. Consultant and Client may terminate this Agreement for convenience upon 30 days written notice delivered or mailed to the other Party.

14.2. Termination for Cause. In the event of material breach of this Agreement, the non-breaching Party may terminate this Agreement if the breaching Party fails to cure the breach within 5 days following delivery of the non-breaching Party’s written notice of the breach to the breaching Party. The termination notice must state the basis for the termination. The Agreement may not be terminated for cause if the breaching Party cures the breach within the 5-day period.

14.3. Payment on Termination. Following termination other than for Consultant’s material breach of this Agreement, Client will pay Consultant for Services performed prior to the termination notice date, and for any necessary Services and expenses incurred in connection with the termination of the Project, including but not limited to, the costs of completing analysis, records and reports necessary to document job status at the time of termination and costs associated with termination of subcontractor contracts in accordance with Consultant’s then current Fee Schedule.

15. DISPUTES

15.1. Generally. It is the intention of the Parties that all claims, controversies, disputes, disagreements, or requests for determinations as to interpretation of or compliance with the Agreement, relating to, connected with or arising out of the Agreement, including any breach thereof or question as to the existence, termination or validity thereof (collectively a “Dispute”}, be resolved first through a meeting of principals, then a mediation process, and thereafter, failing satisfactory agreement as to resolution of the Dispute, through final, binding arbitration, all as provided in this Article 15.

15.2. Informal Negotiation. The parties will first attempt in good faith to resolve through negotiation any dispute, claim or controversy arising out of or relating to this Agreement. Either Party may initiate negotiations by providing written notice in letter form to the other Party, setting forth the subject of the dispute and the relief requested. The recipient of such notice shall respond within fifteen (15) business days with a written statement of its position on, and recommended solution to, the Dispute, and the name and title of the executive who will represent that Party and of any other person who will accompany the executive. If the dispute is not resolved by this exchange of correspondence, then the executives of both parties shall meet at a mutually acceptable time and place within 30 days after delivery of the disputing Party’s notice and thereafter as often as they reasonably deem necessary to attempt to resolve the dispute. All reasonable requests for information made by one Party to the other will be honored. All negotiations pursuant to this Section 15.2 are confidential and shall be treated as compromise and settlement negotiations for purposes of the Federal Rules of Evidence and state rules of evidence. If informal negotiation is unsuccessful, the parties shall then proceed to non-binding Mediation.

15.3. Precondition to Other Action. All Disputes shall, before the initiation of arbitration be first submitted for resolution through mediation in which both Parties shall participate; provided, however, that if necessary to preserve a Party’s rights as a result of the expiration of a statute of limitation or other period of limitation, a Party may initiate arbitration prior to completion of mediation; provided further, however, that in such event the parties shall nonetheless proceed with the mediation and shall, to the extent permitted by the Arbitrator, stay the arbitration proceedings.

15.4. Mediation. In the event that informal negotiation does not resolve a dispute, all disputes between Consultant and Client, except those involving Client’s failure to pay undisputed invoices as provided herein and excluding Consultant’s perfection of any mechanic’s lien, are subject to mediation. Either Party may demand mediation by serving a written notice stating the essential nature of the Dispute, amount of time or money claimed, and requiring that the matter be mediated within 45 days of service of notice. The mediation shall be administered by the American Arbitration Association or by such other person or organization as the parties may agree upon, in accordance with the Construction Industry Arbitration Rules and Mediation Procedures of the American Arbitration Association. Each Party shall bear its own expenses and an equal share of the expenses of the mediator. No further action may be initiated unless the mediation does not occur within sixty (60) days after service of such notice, the mediation occurred but did not resolve the dispute, or a statute of limitation would lapse if suit was not filed prior to sixty (60) days after service of notice.

15.5. Arbitration. The Parties shall submit any and all unresolved disputes that are not resolved Mediation under Section 15.4 above, to final and binding arbitration conducted by one arbitrator mutually agreed upon by the Parties. In the event that the Parties cannot mutually agree on an arbitrator and arbitrator shall be appointed by the American Arbitration Association. Such arbitration will be conducted in accordance with and subject to the Construction Industry Arbitration Rules of the American Arbitration Association then in effect. The arbitrator(s) will allow such discovery as is appropriate, consistent with the purposes of arbitration in accomplishing fair, speedy and cost-effective resolution of disputes. The arbitrator will reference the Federal Rules of Civil Procedure then in effect in setting the scope of discovery, except that no requests for admissions will be permitted and interrogatories will be limited to identifying (a) persons with knowledge of relevant facts and (b) expert witnesses and their opinions and the basis therefore. The award rendered by the arbitrator shall be final and binding, except that either party may appeal the award to a court of competent jurisdiction on the grounds of errors of law or fact made by the arbitrator. and judgment may be entered upon it in accordance with applicable law in any court having jurisdiction. The arbitrators shall have no authority to vary the terms of the Agreement between the Parties, to examine issues left to the discretion of either Party, or to consider any matter not submitted to arbitration as prescribed CA COMT 2026.2 Page 8 of 9 __________/__________
T26316CAF City of Tulare Dayton Avenue Improvements Contract Please initial herein. The arbitrator shall be authorized to provide all recognizable remedies available in law or equity for any cause of action that is the basis of the arbitration (to the extent such remedy is not otherwise precluded under this Agreement), provided that (i) the arbitrator shall not have the authority to award punitive damages, and (ii) each Party shall bear its own costs and attorney’s fees related to the arbitration.

15.6. Choice of Law; Venue. This Agreement will be construed in accordance with and governed by the laws of the state of California. Except for actions, such as for enforcement of mechanic's liens, which are required by statute to be brought in a specific venue, or unless the parties agree otherwise, any mediation, arbitration or other legal proceeding will occur in Fresno County, California.

15.7. Statutes of Limitations. Any applicable statute of limitations will be deemed to commence running on the earlier of the date of substantial completion of Consultant’s Services under this Agreement or the date on which claimant knew, or should have known, of facts giving rise to its claims.

16. MISCELLANEOUS

16.1. Notices. Any and all notices, requests, instructions, or other communications given by either Party to the other for purposes of requesting services, project scope and fee proposals, or authorizing Services must be in writing and delivered by email, hand delivered to the recipient or delivered by first-class mail to the local Krazan office that will provide services or to the Corporate addresses listed below.

Any and all notices, requests, instructions, or other communications given by either Party to the other for purposes other than requesting services, project scope and fee proposals, or Services authorization, must be in writing and delivered by email, USPS first-class mail with return receipt (postage prepaid) or recognized courier with tracking and signature required for delivery and addressed to the following:

To Consultant: To Client:

Krazan & Associates _____________________________________ 215 West Dakota Avenue _____________________________________ Clovis, California 93612 _____________________________________ Attn: Mr. Dave Jarosz _____________________________________ [email protected] _____________________________________ Either Party may, at any time, designate a new or different address to which notices are to be sent.

Any notice shall be deemed delivered as of the time that the same is personally delivered or as of the date of signature confirming receipt by the recipient.

16.2. Headings. The headings used in this Agreement are for convenience only and are not a part of this Agreement.

16.3. Waiver. The waiver of any term, conditions or breach of this Agreement will not operate as a subsequent waiver of the same term, condition, or breach. One or more waivers of any term, condition or covenant by either Party shall not be construed as a waiver of any other term, condition or covenant.

16.4. Severability. If any portion of this Agreement is void or voidable, such portion will be deemed stricken and the Agreement reformed to as closely approximate the stricken portions as the law allows. If any of the provisions contained in this Agreement are held illegal, invalid, or unenforceable, the enforceability of the remaining provisions will not be impaired.

16.5. Modification of This Agreement. This Agreement may not be modified or altered, except by a written agreement signed by authorized representatives of both parties and referring specifically to this Agreement. No person other than a corporate officer (President, Vice President, or Chief Financial Officer) of Client is authorized to amend, change, modify, or waive any term or provision of this Agreement.

16.6. Survival. These terms and conditions survive the completion of the Services and/or the termination of this Agreement, whether for cause or for convenience.

16.7. Warranty Of Authority To Sign, Personal Guarantee. The person signing this contract warrants that he/she has authority to sign on the behalf of the Client for whose benefit Consultant’s services are rendered. If such person does not have such authority, he/she agrees that he/she is personally liable for obligations under this Agreement and all breaches of this contract and that in any action against him/her for breach of such warranty, reasonable attorney’s fees shall be included in any judgment rendered. Further, if Client fails to perform and is in breach of this Agreement the person signing this Agreement agrees that he/she is personally liable for obligations under this Agreement and all breaches of this contract and that in any action against him/her for breach of such warranty, reasonable attorney’s fees shall be included in any judgment rendered.

16.8. Incorporation of Provisions Required By Law. Each provision and clause required by law to be inserted in this Agreement is included herein, and the Agreement should be read and enforced as though each were set forth in its entirety herein.

16.9. Electronic Media. Upon Client’s request, Consultant may provide Documents and information in an electronic format. Client acknowledges that electronic files are subject to undetectable alteration due to (among other causes) transmission, conversion, media degradation, software errors, or human interference. Accordingly, all such electronic materials are for informational purposes only; the original paper copy issued by Consultant shall govern as the final and controlling documentation of the Services.

16.10.Electronic Copies. A scanned or electronically signed copy of this Agreement shall be deemed an original and may be used as valid evidence of its execution and terms, even if the original signed version is unavailable. This Agreement CA COMT 2026.2 Page 9 of 9 __________/__________
T26316CAF City of Tulare Dayton Avenue Improvements Contract Please initial may be executed in counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same instrument.

16.11.No Third-Party Rights. This Agreement shall not create any rights or benefits to parties other than Client and Consultant.

17. ENTIRE AGREEMENT
This Agreement between the parties consists of these Terms and Conditions, the Proposal, and any exhibits or attachments noted in the Proposal is and intended by the Parties to be the full and final expression of their agreement with respect to the Services to be performed in connection with this Agreement, unless modified in writing and agreed to by both parties in an amendment to this Agreement. Together, these elements will constitute the entire Agreement superseding any and all prior negotiations, correspondence, or agreements either written or oral.

The Parties have read the foregoing, understand completely the terms, and willingly enter into this Agreement. This Agreement was developed to be fair and reasonable to both parties. The parties acknowledge that there has been an opportunity to negotiate the terms and conditions of this Agreement and agree to be bound accordingly. Consultant’s acceptance of this Agreement is pending credit review and a retainer fee may be required.

Client: City of Tulare Consultant: Krazan & Associates
Signature Date Signature Date
Name (Please Print) Name (Please Print)
Title Title
LANE ENGINEERS, INC.

Civil  Structural  Surveying
P.O. Box 1059
Tulare, CA 93275
Phone: (559) 688-5263 / Fax: (559) 688-8893

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CONSTRUCTION SURVEYING SERVICES PROPOSAL
Date: May 6, 2026
Client: City of Tulare
Attn: Dylan Chimienti
Project: Dayton & Tulare Improvements
Location: Between Dayton St. and Laspina St. North of Tulare Ave.

Tulare, CA
Our estimate for budgetary purposes for construction surveying services for the above referenced project is as follows:

ALL PHASES:

1. Establish control and prepare staking drawing ............................................................................. $8,500

2. Locate and tie out monuments to be replaced (Up to 6 monuments) ......................................... $3,000

3. Re-survey monuments to be rebuilt* (Up to 6 monuments) ........................................................ $3,000

4. File Corner Records (Up to 6 corner records) ............................................................................... $4,500

5. Staking calculations for all phases (Office Only) ......................................................................... $20,000 PHASE 1 (Includes field work and preparation of cutsheets/staking plans):

1. Stake demo ...................................................................................................................... $2,800

2. Stake drives, ramps, returns and curbs ....................................................................................... $15,500

3. Stake water ................................................................................................................................ $9,500

4. Stake sewer ................................................................................................................................ $9,500

5. Stake storm drain ...................................................................................................................... $5,500

6. Stake crown ...................................................................................................................... $9,500 PHASE 2 (Includes field work and preparation of cutsheets/staking plans):

1. Stake demo ...................................................................................................................... $2,800

2. Stake drives, ramps, returns and curbs ......................................................................................... $7,000

3. Stake water .................................................................................................................................. $5,000

4. Stake sewer .................................................................................................................................. $6,000

5. Stake storm drain .......................................................................................................................... $3,000

6. Stake crown .................................................................................................................................. $5,000 PHASE 3 (Includes field work and preparation of cutsheets/staking plans):

1. Stake demo ...................................................................................................................... $2,800

2. Stake drives, ramps, returns and curbs ......................................................................................... $7,000

3. Stake water .................................................................................................................................. $5,000

Page 2 ends

4. Stake sewer .................................................................................................................................. $6,000

5. Stake crown .................................................................................................................................. $5,000 PHASE 4 (Includes field work and preparation of cutsheets/staking plans):

1. Stake water .................................................................................................................................. $3,500 Total Estimate: ...................................................................................................................... $149,400 The above scope of work is based on cut/fill stakes being set one time. Stakes will be set 50 ft. O.C. maximum or at changes in vertical and horizontal alignment. Items not included in the above scope of work will be considered extra work and will be billed on an hourly basis in accordance with our Prevailing Wage Fee Schedule. It is understood that multiple site visits may be necessary for portions of the staking due to traffic control, but an unreasonable amount of site move-ons will constitute extra work. It is assumed that sewer laterals and water services will be replaced in the same location as they currently exist and tied into the main line without additional staking. A list of extra work that is not included in this estimate includes, but it not limited to:

1. Restaking

2. Sewer laterals and water services

3. “Blue Top” Stakes

4. Re-building control monuments destroyed or damaged during construction

5. Elevation Certificates

6. As-builts or as-built certifications

7. Sidewalks and flatwork
NOTES:
 Staking requests to the surveyor are to be made 48 hours prior to beginning construction of item requested.
 Requests are to be made by email using the enclosed form.  Contractor is responsible for verifying stakes marked in the field with the data shown on the cut sheets and staking drawing. Contractor must allow 48 hour timeframe to check work and produce deliverables. Surveyor is to be notified immediately and prior to construction in the event there are any discrepancies between information on the cut sheet and information marked onsite.  The contractor will be solely responsible for correcting any improvements constructed prior to processing of the cut sheets by the surveyor before the 48 hour timeframe.  *Monument to be installed by contractor at location marked by surveyor.

Respectfully submitted,
LANE ENGINEERS, INC.

Benjamin R. Mullins, PLS 9227

Bid Schedule A - General Conditions
Item No. Quantity Unit Item Description Unit Price Total Amount Unit Price Total Amount Unit Price Total Amount Unit Price Total Amount Unit Price Total Amount Unit Price Total Amount Unit Price Total Amount Unit Price Total Amount Unit Price Total Amount Unit Price Total Amount 1 1 LS Mobilization, Demobilization, Bonds & Insurance $441,816.00 $441,816.00 $150,000.00 $150,000.00 $150,000.00 $150,000.00 $150,000.00 $150,000.00 $150,000.00 $150,000.00 $150,000.00 $150,000.00 $150,000.00 $150,000.00 $150,000.00 $150,000.00 $150,000.00 $150,000.00 $143,024.00 $143,024.00 2 2 EA Construction Notification Sign $2,431.00 $4,862.00 $1,400.00 $2,800.00 $950.00 $1,900.00 $650.00 $1,300.00 $2,500.00 $5,000.00 $2,800.00 $5,600.00 $1,800.00 $3,600.00 $2,000.00 $4,000.00 $2,000.00 $4,000.00 $2,770.00 $5,540.00 3 1 LS Traffic Control System $101,723.00 $101,723.00 $152,000.00 $152,000.00 $21,575.00 $21,575.00 $164,000.00 $164,000.00 $215,000.00 $215,000.00 $30,000.00 $30,000.00 $634,000.00 $634,000.00 $170,000.00 $170,000.00 $44,000.00 $44,000.00 $93,637.00 $93,637.00 4 1 LS Dust Control $47,630.00 $47,630.00 $9,200.00 $9,200.00 $6,500.00 $6,500.00 $85,000.00 $85,000.00 $1,000.00 $1,000.00 $25,000.00 $25,000.00 $700.00 $700.00 $1,000.00 $1,000.00 $1,100.00 $1,100.00 $43,096.00 $43,096.00 5 1 LS Clearing and Grubbing $42,979.00 $42,979.00 $41,000.00 $41,000.00 $3,800.00 $3,800.00 $177,000.00 $177,000.00 $75,000.00 $75,000.00 $55,000.00 $55,000.00 $617,600.00 $617,600.00 $20,000.00 $20,000.00 $10,500.00 $10,500.00 $4,713.00 $4,713.006 1 LS Storm Water Pollution Prevention Plan $35,508.00 $35,508.00 $10,500.00 $10,500.00 $13,687.00 $13,687.00 $3,000.00 $3,000.00 $5,000.00 $5,000.00 $25,000.00 $25,000.00 $7,350.00 $7,350.00 $7,000.00 $7,000.00 $48,500.00 $48,500.00 $21,885.00 $21,885.007 1 LS Unknown Utility Conflict $150,000.00 $150,000.00 $150,000.00 $150,000.00 $150,000.00 $150,000.00 $150,000.00 $150,000.00 $150,000.00 $150,000.00 $150,000.00 $150,000.00 $150,000.00 $150,000.00 $150,000.00 $150,000.00 $150,000.00 $150,000.00 $150,000.00 $150,000.008 1 LS Miscellaneous Facilities & Operations $119,680.00 $119,680.00 $180,800.00 $180,800.00 $108,888.00 $108,888.00 $49,940.00 $49,940.00 $180,000.00 $180,000.00 $385,000.00 $385,000.00 $125,000.00 $125,000.00 $420,000.00 $420,000.00 $458,874.90 $458,874.90 $183,336.00 $183,336.00 Bid Schedule B - Street
9 8,850 CY Roadway Excavation $48.48 $429,048.00 $34.70 $307,095.00 $30.72 $271,872.00 $20.00 $177,000.00 $50.00 $442,500.00 $35.00 $309,750.00 $0.00 $0.00 $58.00 $513,300.00 $46.00 $407,100.00 $40.00 $354,000.00 10 3,220 LF Concrete Removal (Curb & Gutter) $7.51 $24,182.20 $7.65 $24,633.00 $16.00 $51,520.00 $16.00 $51,520.00 $18.00 $57,960.00 $25.00 $80,500.00 $9.00 $28,980.00 $16.00 $51,520.00 $10.00 $32,200.00 $14.50 $46,690.00 11 225 LF Concrete Removal (Rolled Curb) $7.65 $1,721.25 $6.84 $1,539.00 $16.00 $3,600.00 $38.00 $8,550.00 $18.00 $4,050.00 $25.00 $5,625.00 $8.00 $1,800.00 $19.00 $4,275.00 $11.00 $2,475.00 $14.50 $3,262.50 12 55 EA Concrete Removal (Standard Drive Approach) $303.60 $16,698.00 $1,200.00 $66,000.00 $720.00 $39,600.00 $1,200.00 $66,000.00 $1,300.00 $71,500.00 $780.00 $42,900.00 $225.00 $12,375.00 $2,000.00 $110,000.00 $721.00 $39,655.00 $2,185.00 $120,175.00 13 6 EA Concrete Removal (Valley Gutter) $607.20 $3,643.20 $2,100.00 $12,600.00 $995.00 $5,970.00 $2,900.00 $17,400.00 $5,000.00 $30,000.00 $2,100.00 $12,600.00 $1,600.00 $9,600.00 $2,800.00 $16,800.00 $850.00 $5,100.00 $2,185.00 $13,110.00 14 9 EA Concrete Removal (Curb Ramp) $337.33 $3,035.97 $1,100.00 $9,900.00 $995.00 $8,955.00 $4,800.00 $43,200.00 $1,800.00 $16,200.00 $1,000.00 $9,000.00 $700.00 $6,300.00 $2,200.00 $19,800.00 $450.00 $4,050.00 $2,185.00 $19,665.00 15 1 EA Concrete Removal (Alley Approach) $337.33 $337.33 $1,600.00 $1,600.00 $1,865.00 $1,865.00 $2,200.00 $2,200.00 $2,000.00 $2,000.00 $1,200.00 $1,200.00 $700.00 $700.00 $2,200.00 $2,200.00 $1,000.00 $1,000.00 $2,185.00 $2,185.00 16 9,700 SF Concrete Removal (Sidewalk/Flatwork) $1.87 $18,139.00 $4.00 $38,800.00 $2.50 $24,250.00 $6.00 $58,200.00 $3.00 $29,100.00 $5.25 $50,925.00 $2.50 $24,250.00 $9.00 $87,300.00 $2.50 $24,250.00 $3.70 $35,890.00 17 29 EA Concrete Curb Ramp $5,416.50 $157,078.50 $7,375.00 $213,875.00 $12,784.00 $370,736.00 $7,500.00 $217,500.00 $7,000.00 $203,000.00 $12,500.00 $362,500.00 $6,200.00 $179,800.00 $8,400.00 $243,600.00 $9,550.00 $276,950.00 $5,685.00 $164,865.00 18 6,230 SF Concrete Sidewalk (4 inch) $8.50 $52,955.00 $9.50 $59,185.00 $15.75 $98,122.50 $9.50 $59,185.00 $12.00 $74,760.00 $12.00 $74,760.00 $8.00 $49,840.00 $15.00 $93,450.00 $15.00 $93,450.00 $9.10 $56,693.00 19 970 SF Concrete Sidewalk (6 inch) $12.75 $12,367.50 $14.00 $13,580.00 $17.95 $17,411.50 $15.00 $14,550.00 $15.00 $14,550.00 $14.00 $13,580.00 $12.00 $11,640.00 $18.00 $17,460.00 $19.00 $18,430.00 $20.50 $19,885.00 20 2,450 LF Concrete Curb & Gutter $22.62 $55,419.00 $44.30 $108,535.00 $72.70 $178,115.00 $50.00 $122,500.00 $65.00 $159,250.00 $50.00 $122,500.00 $46.00 $112,700.00 $69.00 $169,050.00 $83.00 $203,350.00 $58.00 $142,100.00 21 48 LF Concrete Rolled Curb $111.60 $5,356.80 $96.00 $4,608.00 $131.00 $6,288.00 $65.00 $3,120.00 $95.00 $4,560.00 $50.00 $2,400.00 $60.00 $2,880.00 $78.00 $3,744.00 $68.00 $3,264.00 $60.50 $2,904.00 22 6 EA Concrete Cross Gutter $10,563.18 $63,379.08 $13,800.00 $82,800.00 $17,278.00 $103,668.00 $16,000.00 $96,000.00 $16,000.00 $96,000.00 $10,000.00 $60,000.00 $13,000.00 $78,000.00 $16,000.00 $96,000.00 $12,650.00 $75,900.00 $19,787.00 $118,722.0023 2 EA Alley Approach $7,213.82 $14,427.64 $9,700.00 $19,400.00 $9,498.00 $18,996.00 $10,000.00 $20,000.00 $5,000.00 $10,000.00 $19,000.00 $38,000.00 $6,300.00 $12,600.00 $8,000.00 $16,000.00 $10,385.00 $20,770.00 $6,181.00 $12,362.0024 460 LF 36" Alley Vee Gutter $51.58 $23,726.80 $41.00 $18,860.00 $64.35 $29,601.00 $40.00 $18,400.00 $70.00 $32,200.00 $60.00 $27,600.00 $40.00 $18,400.00 $52.00 $23,920.00 $54.00 $24,840.00 $58.00 $26,680.00 25 51 EA Standard Driveway Approach $3,074.27 $156,787.77 $5,000.00 $255,000.00 $7,831.00 $399,381.00 $6,500.00 $331,500.00 $4,000.00 $204,000.00 $5,200.00 $265,200.00 $4,000.00 $204,000.00 $5,600.00 $285,600.00 $5,295.00 $270,045.00 $3,710.00 $189,210.00 26 5 EA Wedge Curb Driveway Approach $6,138.00 $30,690.00 $5,800.00 $29,000.00 $4,712.00 $23,560.00 $5,300.00 $26,500.00 $3,500.00 $17,500.00 $6,800.00 $34,000.00 $4,000.00 $20,000.00 $5,300.00 $26,500.00 $4,680.00 $23,400.00 $3,121.00 $15,605.0027 35570 SY Aggregate Base (Class II) $10.69 $380,243.30 $15.40 $547,778.00 $11.64 $414,034.80 $14.00 $497,980.00 $11.00 $391,270.00 $13.00 $462,410.00 $10.00 $355,700.00 $14.00 $497,980.00 $12.00 $426,840.00 $12.50 $444,625.00 28 6,560 TN Hot Mix Asphalt $130.40 $855,424.00 $137.20 $900,032.00 $113.33 $743,444.80 $112.00 $734,720.00 $120.00 $787,200.00 $130.00 $852,800.00 $120.00 $787,200.00 $111.00 $728,160.00 $137.00 $898,720.00 $129.00 $846,240.0029 97 CY 2 Sack Slurry $200.00 $19,400.00 $200.00 $19,400.00 $266.00 $25,802.00 $340.00 $32,980.00 $200.00 $19,400.00 $200.00 $19,400.00 $175.00 $16,975.00 $400.00 $38,800.00 $357.00 $34,629.00 $1,165.00 $113,005.00 30 2 EA Reset Monuments & Adjust Frame & Cover to Grade $1,600.00 $3,200.00 $1,000.00 $2,000.00 $550.00 $1,100.00 $1,500.00 $3,000.00 $2,500.00 $5,000.00 $1,200.00 $2,400.00 $2,100.00 $4,200.00 $1,500.00 $3,000.00 $4,500.00 $9,000.00 $959.00 $1,918.00 31 1 LS Signage, Pavement Striping, Markers & Markings $5,450.50 $5,450.50 $5,451.00 $5,451.00 $5,997.00 $5,997.00 $17,000.00 $17,000.00 $5,000.00 $5,000.00 $14,000.00 $14,000.00 $5,000.00 $5,000.00 $6,000.00 $6,000.00 $15,000.00 $15,000.00 $5,991.00 $5,991.00 Bid Schedule C - Utilities
32 1 LS Remvoe & Dispose of Water Pipe, Valves, Risers, Boxes & Lids $138,240.00 $138,240.00 $138,240.00 $138,240.00 $25,955.00 $25,955.00 $45,000.00 $45,000.00 $157,000.00 $157,000.00 $10,000.00 $10,000.00 $100,000.00 $100,000.00 $42,000.00 $42,000.00 $49,500.00 $49,500.00 $40,671.00 $40,671.0033 1 LS Abandon Existing Water Pipe $22,400.00 $22,400.00 $22,400.00 $22,400.00 $12,038.00 $12,038.00 $35,000.00 $35,000.00 $25,000.00 $25,000.00 $13,000.00 $13,000.00 $125,000.00 $125,000.00 $10,000.00 $10,000.00 $19,800.00 $19,800.00 $225,339.00 $225,339.0034 7,200 LF 8 inch C-900 DR-18 Water Pipe $63.00 $453,600.00 $63.00 $453,600.00 $85.00 $612,000.00 $90.00 $648,000.00 $72.00 $518,400.00 $98.00 $705,600.00 $155.00 $1,116,000.00 $101.00 $727,200.00 $99.00 $712,800.00 $90.00 $648,000.0035 432 LF 9 inch C-900 DR-14 Water Pipe $81.00 $34,992.00 $81.00 $34,992.00 $86.00 $37,152.00 $100.00 $43,200.00 $92.00 $39,744.00 $102.00 $44,064.00 $150.00 $64,800.00 $102.00 $44,064.00 $137.00 $59,184.00 $159.00 $68,688.0036 130 LF Bore & Jack 28" Steel Water Main Casing $1,244.00 $161,720.00 $1,244.00 $161,720.00 $1,066.00 $138,580.00 $1,400.00 $182,000.00 $1,400.00 $182,000.00 $1,300.00 $169,000.00 $800.00 $104,000.00 $970.00 $126,100.00 $1,573.00 $204,490.00 $1,759.00 $228,670.0037 106 EA 1 inch Water Service with Box & Lid: Reuse Existing Water Meter $341.00 $36,146.00 $3,241.00 $343,546.00 $3,195.00 $338,670.00 $2,900.00 $307,400.00 $3,500.00 $371,000.00 $2,500.00 $265,000.00 $3,000.00 $318,000.00 $3,800.00 $402,800.00 $2,640.00 $279,840.00 $4,782.00 $506,892.00 38 35 EA 1 inch Water Service with Box, Lid & Water Meter with Connection to House $5,335.00 $186,725.00 $5,335.00 $186,725.00 $5,311.00 $185,885.00 $3,900.00 $136,500.00 $6,000.00 $210,000.00 $3,686.00 $129,010.00 $4,500.00 $157,500.00 $6,000.00 $210,000.00 $7,260.00 $254,100.00 $5,991.00 $209,685.00 39 3 EA 1 1/2 inch Water Service with Box & Lid & Water Meter $6,809.00 $20,427.00 $6,809.00 $20,427.00 $6,055.00 $18,165.00 $6,000.00 $18,000.00 $7,500.00 $22,500.00 $5,700.00 $17,100.00 $3,500.00 $10,500.00 $7,000.00 $21,000.00 $7,150.00 $21,450.00 $7,914.00 $23,742.0040 14 EA 2 inch Water Service with Box, Lid & Water Meter $7,597.00 $106,358.00 $7,597.00 $106,358.00 $7,555.00 $105,770.00 $8,000.00 $112,000.00 $8,600.00 $120,400.00 $6,500.00 $91,000.00 $5,000.00 $70,000.00 $7,600.00 $106,400.00 $7,700.00 $107,800.00 $8,574.00 $120,036.0041 33 EA 8 inch Water Valve $4,642.00 $153,186.00 $4,642.00 $153,186.00 $2,885.00 $95,205.00 $2,900.00 $95,700.00 $5,200.00 $171,600.00 $3,000.00 $99,000.00 $2,600.00 $85,800.00 $3,300.00 $108,900.00 $2,750.00 $90,750.00 $4,067.00 $134,211.00 42 1 LS Manifold Water Services - STA 34+00 $26,515.00 $26,515.00 $26,515.00 $26,515.00 $53,445.00 $53,445.00 $60,000.00 $60,000.00 $30,000.00 $30,000.00 $30,000.00 $30,000.00 $20,000.00 $20,000.00 $50,000.00 $50,000.00 $19,800.00 $19,800.00 $73,647.00 $73,647.00 43 1 LS Manifold Water Services - STA 145+00 $18,395.00 $18,395.00 $18,395.00 $18,395.00 $33,016.00 $33,016.00 $20,000.00 $20,000.00 $21,000.00 $21,000.00 $28,000.00 $28,000.00 $45,000.00 $45,000.00 $32,000.00 $32,000.00 $23,650.00 $23,650.00 $28,580.00 $28,580.0044 1 LS Manifold Water Services - STA 163+68.86 $12,347.00 $12,347.00 $12,347.00 $12,347.00 $14,287.00 $14,287.00 $17,000.00 $17,000.00 $14,000.00 $14,000.00 $14,000.00 $14,000.00 $10,000.00 $10,000.00 $10,000.00 $10,000.00 $30,250.00 $30,250.00 $20,885.00 $20,885.0045 56 EA Adjust Water Valve $819.00 $45,864.00 $800.00 $44,800.00 $550.00 $30,800.00 $320.00 $17,920.00 $1,000.00 $56,000.00 $1,000.00 $56,000.00 $2,100.00 $117,600.00 $600.00 $33,600.00 $935.00 $52,360.00 $959.00 $53,704.00 46 19 EA Install Fire Hydrant Assembly $13,275.00 $252,225.00 $13,275.00 $252,225.00 $12,390.00 $235,410.00 $11,000.00 $209,000.00 $15,000.00 $285,000.00 $16,000.00 $304,000.00 $11,500.00 $218,500.00 $13,500.00 $256,500.00 $10,175.00 $193,325.00 $15,826.00 $300,694.0047 1 LS Remove & Dispose of Existing Storm Drain Pipe $6,664.00 $6,664.00 $6,664.00 $6,664.00 $15,985.00 $15,985.00 $8,000.00 $8,000.00 $7,500.00 $7,500.00 $65,000.00 $65,000.00 $50,000.00 $50,000.00 $25,000.00 $25,000.00 $30,800.00 $30,800.00 $100,578.00 $100,578.00 48 3 EA Remove & Dispose of Existing Storm Drain Inlet $1,493.00 $4,479.00 $1,493.00 $4,479.00 $1,250.00 $3,750.00 $2,400.00 $7,200.00 $1,700.00 $5,100.00 $1,300.00 $3,900.00 $1,300.00 $3,900.00 $1,600.00 $4,800.00 $1,100.00 $3,300.00 $2,418.00 $7,254.00 49 4 EA Remove & Dispose of Existing Storm Drain Manhole $1,600.00 $6,400.00 $1,600.00 $6,400.00 $1,600.00 $6,400.00 $4,200.00 $16,800.00 $1,800.00 $7,200.00 $1,300.00 $5,200.00 $2,000.00 $8,000.00 $2,000.00 $8,000.00 $1,100.00 $4,400.00 $3,188.00 $12,752.0050 1,127 LF 12 inch SDR-26 Storm Drain Pipe $92.00 $103,684.00 $92.00 $103,684.00 $101.00 $113,827.00 $85.00 $95,795.00 $105.00 $118,335.00 $103.00 $116,081.00 $125.00 $140,875.00 $112.00 $126,224.00 $93.50 $105,374.50 $117.00 $131,859.00 51 2174 LF 18 inch RGRCP Storm Drain Pipe $122.00 $265,228.00 $122.00 $265,228.00 $133.00 $289,142.00 $130.00 $282,620.00 $140.00 $304,360.00 $169.00 $367,406.00 $140.00 $304,360.00 $145.00 $315,230.00 $164.00 $356,536.00 $140.00 $304,360.0052 14 EA Adjust Storm Drain Manhole $1,390.00 $19,460.00 $1,500.00 $21,000.00 $850.00 $11,900.00 $1,100.00 $15,400.00 $1,600.00 $22,400.00 $1,500.00 $21,000.00 $2,100.00 $29,400.00 $1,100.00 $15,400.00 $1,155.00 $16,170.00 $1,769.00 $24,766.00 53 4 EA Storm Drain Inlet $8,918.00 $35,672.00 $8,918.00 $35,672.00 $6,500.00 $26,000.00 $4,200.00 $16,800.00 $10,000.00 $40,000.00 $7,700.00 $30,800.00 $7,500.00 $30,000.00 $6,600.00 $26,400.00 $8,250.00 $33,000.00 $17,587.00 $70,348.0054 6 EA 48 inch Storm Drain Manhole $7,213.00 $43,278.00 $7,213.00 $43,278.00 $5,528.00 $33,168.00 $16,500.00 $99,000.00 $8,200.00 $49,200.00 $8,400.00 $50,400.00 $7,700.00 $46,200.00 $7,300.00 $43,800.00 $4,950.00 $29,700.00 $13,740.00 $82,440.00 55 7 EA 24 inch Storm Drain Manhole $5,439.00 $38,073.00 $5,439.00 $38,073.00 $3,096.00 $21,672.00 $13,000.00 $91,000.00 $6,200.00 $43,400.00 $5,000.00 $35,000.00 $7,100.00 $49,700.00 $4,800.00 $33,600.00 $4,400.00 $30,800.00 $9,893.00 $69,251.0056 2 EA 48 inch Storm Drain Drywell $11,982.00 $23,964.00 $11,982.00 $23,964.00 $23,250.00 $46,500.00 $21,000.00 $42,000.00 $14,000.00 $28,000.00 $8,000.00 $16,000.00 $9,300.00 $18,600.00 $14,000.00 $28,000.00 $16,500.00 $33,000.00 $37,373.00 $74,746.00 57 1 LS Remove & Dispose of Existing Sanitary Sewer Pipe $18,304.00 $18,304.00 $18,304.00 $18,304.00 $34,790.00 $34,790.00 $80,000.00 $80,000.00 $21,000.00 $21,000.00 $180,000.00 $180,000.00 $200,000.00 $200,000.00 $200,000.00 $200,000.00 $137,500.00 $137,500.00 $206,652.00 $206,652.00 58 28 EA Remove & Dispose of Existing Sanitary Sewer Manhole $2,094.00 $58,632.00 $2,094.00 $58,632.00 $2,158.00 $60,424.00 $2,800.00 $78,400.00 $2,400.00 $67,200.00 $500.00 $14,000.00 $1,600.00 $44,800.00 $1,800.00 $50,400.00 $1,700.00 $47,600.00 $5,276.00 $147,728.00 59 6,078 EA 8 inch SDR-26 Sewer Pipe $54.00 $328,212.00 $54.00 $328,212.00 $84.00 $510,552.00 $48.00 $291,744.00 $61.00 $370,758.00 $130.00 $790,140.00 $113.00 $686,814.00 $120.00 $729,360.00 $145.00 $881,310.00 $132.00 $802,296.00 60 1,523 LF 10 inch SDR-26 Sewer Pipe $66.00 $100,518.00 $66.00 $100,518.00 $130.00 $197,990.00 $62.00 $94,426.00 $75.00 $114,225.00 $165.00 $251,295.00 $115.00 $175,145.00 $130.00 $197,990.00 $353.00 $537,619.00 $142.00 $216,266.00 61 167 LF 4 inch Sewer Service $2,598.00 $433,866.00 $2,598.00 $433,866.00 $2,530.00 $422,510.00 $3,650.00 $609,550.00 $3,000.00 $501,000.00 $2,600.00 $434,200.00 $2,100.00 $350,700.00 $4,000.00 $668,000.00 $2,805.00 $468,435.00 $2,336.00 $390,112.00 62 26 EA 48 inch Sanitary Sewer Manhole $5,748.00 $149,448.00 $5,748.00 $149,448.00 $7,120.00 $185,120.00 $13,500.00 $351,000.00 $6,500.00 $169,000.00 $7,200.00 $187,200.00 $7,500.00 $195,000.00 $7,000.00 $182,000.00 $7,150.00 $185,900.00 $16,488.00 $428,688.00 63 1 EA 49 inch Sanitary Sewer Drop Manhole $12,812.00 $12,812.00 $12,812.00 $12,812.00 $12,150.00 $12,150.00 $17,500.00 $17,500.00 $15,000.00 $15,000.00 $11,000.00 $11,000.00 $9,400.00 $9,400.00 $12,000.00 $12,000.00 $20,000.00 $20,000.00 $38,472.00 $38,472.00 64 28 EA Adjust Sanitary Sewer Manhole $1,344.00 $37,632.00 $1,360.00 $38,080.00 $850.00 $23,800.00 $1,100.00 $30,800.00 $1,500.00 $42,000.00 $1,500.00 $42,000.00 $2,100.00 $58,800.00 $1,100.00 $30,800.00 $1,155.00 $32,340.00 $1,769.00 $49,532.00 65 2 EA 2 inch Water Service with Box, Lid & Water Meter with Connection to House $10,752.00 $21,504.00 $10,752.00 $21,504.00 $8,205.00 $16,410.00 $11,000.00 $22,000.00 $12,000.00 $24,000.00 $11,000.00 $22,000.00 $3,500.00 $7,000.00 $12,500.00 $25,000.00 $89,100.00 $178,200.00 $8,794.00 $17,588.00 $6,653,878.84 $7,123,265.00 $7,268,707.60 $7,596,000.00 $7,631,322.00 $8,307,046.00 $8,602,584.00 $8,879,027.00 $9,028,476.40 $9,260,145.50 #2
Archer Construction Terra West Cal Valley
#1 #4
99 Pipeline Avison Construction
#6
TOTAL
#9 #10
Todd Companies MAC General Engineering
#8
Clark Brothers Dawson-Mauldin
#7
Walsh Montgomery
#5
BID SUMMARY 5/11/26
CITY OF TULARE - Dayton-Tulare Improvements
#3
Staff Report
Meeting: City Council
Date: June 2, 2026
Department: Community Development - Housing
Submitted by: Jessica Cervantez, Housing and Grants Specialist Norveen Brar, Housing and Grants Specialist
Agenda Title: Approve Program Guidelines for HOME Investment Partnerships Program Activities

RECOMMENDED ACTION
Approve Program Guidelines for the City of Tulare HOME Owner-Occupied Rehabilitation and First-Time Homebuyer Assistance activities; and authorize the City Manager and/or their designee to finalize and submit said guidelines to the California Housing and Community Development Department.

SUMMARY
The City of Tulare (“City”) regularly applies for HOME ‘grant’ funds to the California Department of Housing and Community Development (“HCD”), to implement activities that provide loan or grant financing to help low-income person(s) affordably purchase a home, complete necessary improvements to their properties, and rent a home. Currently, the City’s subrecipient agreement with Self-Help Enterprises involves the implementation of owner-occupied rehabilitation and first-time homebuyer assistance with available HOME grant and program income funds. As part of administering these activities, the City and its program operators are required to maintain and update the applicable program guidelines with input from City Councilmembers and HCD.

The First-Time Homebuyer (FTHB) Program aims to facilitate homeownership opportunities for lowincome individuals and families within the Tulare City limits by providing financial assistance towards down payment, closing costs, and/or gap financing. FTHB program guidelines establish the applicable eligibility requirements, income limits, property eligibility standards, loan terms, occupancy requirements, underwriting criteria, and administrative procedures necessary for program implementation. The OwnerOccupied Rehabilitation (OOR) Program is designed to assist eligible low-income homeowners with housing repair and rehabilitation projects. OOR program provides assistance in the form of deferred payment loans used to finance the cost of necessary repairs and improvements that address healthy, safe, sanitary, and code-compliant homes for low-income homeowners, thereby preserving the City’s existing house stock. The OOR program guidelines establish income limits, eligibility requirements, eligible rehabilitation activities, loan terms, property standards, and program requirements.

Final versions will remain available on the City’s Housing Programs website.

FISCAL IMPACT & FUNDING SOURCES
This action does not involve a new fiscal impact, only programmatic in scope.

ENVIRONMENTAL REVIEW
This action does not constitute a “project” pursuant to the California Environmental Quality Act (CEQA).

POTENTIAL CONFLICT OF INTEREST
Staff is not aware of any conflicts of interest.

Item #: 8.9
Consent

LEGAL REVIEW
This item involves the adoption of program guidelines for HOME activities, and at the time of major scope changes and/or new related agreements to implement related activities the City Attorney will be consulted.

PUBLIC NOTICE
This item does not require a public hearing and was noticed as a part of the agenda.

ALTERNATIVE ACTION

1. Approve with changes

2. Deny

3. Table
If approval is not given, the City risks a delay and interruption to the implementation of particular HOME activities.

ATTACHMENTS

1. Resolution – Approve OOR Program Guidelines

2. Resolution – Approve FTHB Program Guidelines

3. Draft Owner-Occupied Rehabilitation Program Guidelines

4. Draft First-Time Homebuyer Assistance Program Guidelines Reviewed/Approved: TG
RESOLUTION 2026-XXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TULARE
APPROVING PROGRAM GUIDELINES FOR A HOME INVESTMENT PARTNERSHIPS OWNEROCCUPIED REHABILITATION ASSISTANCE PROGRAM WHEREAS, the City of Tulare, a political subdivision of the State of California, established Program Guidelines which govern the administration of its Owner-Occupied Rehabilitation Program; and WHEREAS, the City of Tulare desires to approve the Program Guidelines for the OwnerOccupied Rehabilitation Program to comply with the California Department of Housing and Community Development’s requirements.

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

Section 1. The Program Guidelines presented on June 2, 2026, are updated and approved for local administration of a HOME Investment Partnerships Owner-Occupied Rehabilitation Program.

Section 2. The Program Guidelines are subject to final review and approval by the California Department of Housing and Community Development (HCD).

Section 3. The City Manager and/or their designee is hereby authorized to adjust the Program Guidelines to achieve compliance with HCD requirements as necessary. Substantive changes to the Program’s scope will require approval of the City Council of the City of Tulare.

PASSED, APPROVED, AND ADOPTED by the City Council of the City of Tulare on this 2nd day of June 2026, by the following vote:

Ayes:

Noes:

Absent:

Abstain:

Patrick Isherwood, President of the Council
and Ex-Officio Mayor
ATTEST:

RESOLUTION 2026-XXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TULARE

APPROVING PROGRAM GUIDELINES FOR A HOME INVESTMENT PARTNERSHIPS FIRST-TIME

HOMEBUYER ASSISTANCE PROGRAM
WHEREAS, the City of Tulare, a political subdivision of the State of California, established Program Guidelines which govern the administration of its First-Time Homebuyer Assistance Program; and
WHEREAS, the City of Tulare desires to approve the Program Guidelines for the First-Time Homebuyer Assistance Program to comply with the California Department of Housing and Community Development’s requirements.

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

Section 1. The Program Guidelines presented on June 2, 2026, are updated and approved for local administration of a HOME Investment Partnerships First-Time Homebuyer Assistance Program.

Section 2. The Program Guidelines are subject to final review and approval by the California Department of Housing and Community Development (HCD).

PASSED, APPROVED, AND ADOPTED by the City Council of the City of Tulare on this 2nd day of June 2026, by the following vote:

Ayes:

Noes:

Absent:

Abstain:

Patrick Isherwood, President of the Council
and Ex-Officio Mayor
ATTEST:

City of Tulare Housing Rehabilitation Program Guidelines 1 CITY OF TULARE

SINGLE-FAMILY HOUSING

REHABILITATION

ASSISTANCE PROGRAMS
(HOME, CDBG, CalHome)

PROGRAM DESIGN AND PROCESS

HCD Version November 2023
CalHome Approved (date)
CDBG Approved (date)
HOME Approved (date)
City of Tulare Housing Rehabilitation Program Guidelines 2 CITY OF TULARE

HOUSING REHABILITATION

PROGRAM GUIDELINES

TABLE OF CONTENTS

1.0. GENERAL

1.1. PROGRAM OUTREACH AND MARKETING

1.2. APPLICATION PROCESS AND SELECTION

1.3. LOAN PROCESS

1.4. CONFLICT OF INTEREST REQUIREMENTS

2.0. APPLICANT QUALIFICATIONS

2.1. INCOME LIMITS

2.2. INCOME QUALIFICATION CRITERIA

2.3. HOMEOWNER ELIGIBILITY & RESIDENCY REQUIREMENTS

3.0. PROPERTY ELIGIBLITY

3.1. CONDITIONS

3.2. ANTI-DISPLACEMENT POLICY AND RELOCATION ASSISTANCE

3.3. NOTIFICATIONS AND DISCLOSURES

3.4. ENVIRONMENTAL REVIEW

4.0. THE PROGRAM LOAN

4.1. MAXIMUM AMOUNT OF PROGRAM ASSISTANCE

4.2. AFFORDABILITY PARAMETERS FOR HOMEOWNERS

4.3. RATES AND TERMS

4.4. GRANTS

4.5. APPRAISAL

4.6. INSURANCE

5.0. PROGRAM LOAN SERVICING AND MAINTENANCE

5.1. PAYMENTS ARE VOLUNTARY

5.2. RECEIVING LOAN REPAYMENTS

5.3. LOAN SERVICING POLICIES AND PROCEDURES

5.4. LOAN MONITORING PROCEDURES

5.5. DEFAULT AND FORECLOSURE

5.6. SUBORDINATIONS

6.0. CONSTRUCTION

6.1. STANDARDS

6.2. ELIGIBLE CONSTRUCTION COSTS

6.3. ELIGIBLE PROJECT COSTS

6.4. REPAIR CALLBACKS

7.0. EXCEPTIONS AND SPECIAL CIRCUMSTANCES

7.1. AMENDMENTS

7.2. EXCEPTIONS

8.0. DISPUTE RESOLUTION AND APPEALS PROCEDURES

8.1. PROGRAM COMPLAINT AND APPEAL PROCEDURE

8.2. GRIEVANCES BETWEEN PARTICIPANTS AND CONSTRUCTION

CONTRACTOR
City of Tulare Housing Rehabilitation Program Guidelines 3 CITY OF TULARE

HOUSING REHABILITATION

PROGRAM GUIDELINES

ATTACHMENTS TABLE OF CONTENTS
ATTACHMENT A: 24 CFR PART 5 ANNUAL INCOME INCLUSIONS AND EXCLUSIONS – FOR CDBG & HOME
ATTACHMENT A-1: TITLE 25 SECTION 6914 GROSS INCOME INCLUSIONS – FOR

CALHOME
ATTACHMENT B: ANNUAL INCOME NET FAMILY ASSET INCLUSIONS AND EXCLUSIONS – FOR CDBG & HOME
ATTACHMENT B-1: TITLE 25 SECTION 6914 GROSS INCOME EXCLUSIONS – FOR

CALHOME
ATTACHMENT C: HOME PROGRAM HOMEOWNERSHIP VALUE LIMITS; HOME PER-UNIT SUBSIDY LIMITS; CURRENT INCOME LIMITS;

BEDROOM & BATHROOM ADDITION STANDARDS
ATTACHMENT D: MARKETING PLAN
ATTACHMENT E: RESIDENTIAL ANTIDISPLACEMENT AND RELOCATION

ASSISTANCE PLAN
ATTACHMENT F: LOAN SERVICING POLICIES AND PROCEDURES
ATTACHMENT G: FORECLOSURE POLICY
ATTACHMENT H: CERTIFICATION OF OCCUPANCY
ATTACHMENT I: LEAD-BASED PAINT NOTICE OF PRESUMPTION AND HAZARD

REDUCTION FORM
City of Tulare Housing Rehabilitation Program Guidelines 4 CITY OF TULARE

HOUSING REHABILITATION

PROGRAM GUIDELINES
Adopted XX/XX/XXXX

1.0. GENERAL
The above-named entity, hereinafter referred to as the “Sponsor”, has entered into a contractual relationship with the California Department of Housing and Community Development (“HCD”) to administer one or more HCD-funded housing rehabilitation programs. The rehabilitation program described herein and hereinafter referred to as the “Program” is designed to provide assistance to eligible homeowners for correction of health and safety items, as well as code violations, located within the Program’s eligible area, as described in Section 3.0. The Program provides this assistance in the form of deferred payment loans used to finance the cost of necessary repairs that will provide the homeowner with a healthy, safe, sanitary and code compliant home, referred to herein as “housing unit”. The Program will be administered by Self-Help Enterprises, hereinafter referred to as the “Program Operator”.

1.1. PROGRAM OUTREACH AND MARKETING
All outreach efforts will be done in accordance with state and federal fair lending regulations to assure nondiscriminatory treatment, outreach and access to the Program.

No person shall, on the grounds of age, ancestry, color, creed, physical or mental disability or handicap, marital or familial status, medical condition, national origin, race, religion, gender or sexual orientation, be excluded, denied benefits or subjected to discrimination under the Program. The Sponsor will ensure that all persons, including those qualified individuals with handicaps have access to the Program.

A. The Fair Housing Lender and Accessibility logos will be placed on all outreach materials. Fair housing marketing actions will be based upon a characteristic analysis comparison (census data may be used) of the Program’s eligible area compared to the ethnicity of the population served by the Program (includes, separately, all applications given out and those receiving assistance) and an explanation of any underserved segments of the population. This information is used to show that protected classes (age, gender, ethnicity, race, and disability) are not being excluded from the Program. A Fair Housing Marketing Plan can be found as Attachment D.

Flyers or other outreach materials, in English and any other language that is the primary language of a significant portion of the area residents, will be widely distributed in the Program-eligible area and will be provided to any local social service agencies. The Program may sponsor homeownership education classes to help educate homeowners about credit, budgeting, predatory lending, foreclosure prevention and home maintenance, as well as future responsibilities.

B. Section 504 of the Rehabilitation Act of 1973 prohibits the exclusion of an otherwise qualified individual, solely by reason of disability, from participation under any City of Tulare Housing Rehabilitation Program Guidelines 5 program receiving Federal funds. The Program Sponsor will take appropriate steps to ensure effective communication with disabled housing applicants, residents and members of the public.

1.2. APPLICATION PROCESS AND SELECTION
A. Waiting List/Homeowner Contact
The Sponsor will utilize a waiting list. In response to a homeowner’s request, the homeowner is placed on the waiting list. Homeowners are offered the opportunity to qualify for assistance by waiting list priority (a first-come, first served basis).

The Program Operator will contact homeowners by mail and/or by telephone to advise of funding availability. The homeowner has 30 days to complete and return the loan application and supporting documentation. Should a homeowner fail to respond to the initial contact for assistance or to provide any of the required documentation within the 30-day period, the homeowner’s name will be removed from the waiting list. If the homeowner desires assistance at a later time, he/she will be placed on the waiting list at that time.

Should the waiting list be exhausted, the Program will be marketed in accordance with the Sponsor’s Marketing Plan. See Attachment D.

B. Application/Interview
An application packet is provided to the homeowner for completion and submittal to the Program Operator, along with supporting documentation. An interview is scheduled with the applicant. The Program is fully explained; application forms and documentation are reviewed. Verifications are obtained for income, assets, employment, benefits, and mortgage. Title report and appraisals are also obtained.

If the Program Operator encounters material discrepancies and/or misrepresentations, and/or there are income, asset, household composition, or other important questions that can't be resolved, the Sponsor reserves the right to deny assistance to the household. In this case, the applicant may re-apply after six months have elapsed from the time of written assistance denial.

C. Household Selection
Households selected for participation in the Sponsor’s Housing Rehabilitation Program are those determined eligible upon completion of processes described in A. and B. above.

D. Initial Inspection/Work Write-Up/Estimate
Prospective units are inspected by the Program Operator, a certified housing City of Tulare Housing Rehabilitation Program Guidelines 6 inspector, or a Sponsor representative to determine eligibility and acceptability of properties for participation in the Program.

If the home is a pre-1978 unit, the initial inspection will also include paint testing by a certified Lead-Based Paint (LBP) inspector/assessor or presumption of LBP.

Code deficiencies will be corrected and if presumption is used or lead hazards are found they will be properly treated according to HUD regulations (Section 6.1.E & F) and cleared by a certified LBP inspector/assessor. Note: CalHome-funded projects do not require LBP compliance. CDBG projects shall refer to Chapter 20, Lead-Based Paint Requirements for guidance in the CDBG Grant Management Manual.

Measurements and observations are noted about the property, including special conditions with potential cost consequences (dilapidated outbuildings, absence of curb and gutter when required by code, etc.). A floor plan and site plan, as needed, are drawn for the home and property, including all appurtenances.

Findings are noted on an inspection form, and later used by the Program Operator to prepare the work write-up. Estimated costs are determined by the Program Operator who has years of experience in the building industry, and in reviewing contractor bids and verifying cost with materials suppliers. The homeowner reviews the completed work write-up and cost estimate, and the approved writeup is incorporated into bid documents.

E. Bid Solicitation
A bid walk-through date and time are scheduled. The homeowner may choose to solicit his/her own bids or request that the Program Operator solicit bids on his/her behalf. Invitations to bid are mailed to all eligible contractors selected by the homeowner from the Active Contractor List provided by the Program Operator in efforts to obtain three reasonable bids. Homeowners are required to select a minimum of six contractors from the Active Contractor List and may add to the list as long as the contractor meets the requirements outlined in the Housing Rehabilitation/Reconstruction Program Contractor Guidelines and Information Sheet (see Attachment K). Contractors will be notified via telephone and/or in writing (email, fax, etc.) at least one week prior to each bid tour. Bid results will be provided to participating contractors.

Contractors must be licensed and bonded by the State of California Contractors Licensing Board. Contractors must also provide Program Operator with evidence of Workers’ Compensation Insurance and Comprehensive General Liability and Property Damage Insurance with Combined Single Limits of at least $1,000,000.

Recruitment for eligible contractors is done on an ongoing basis, via local advertising, website notification, and program marketing. It is the goal of the Program Operator to maintain an Active Contractor List of eligible, interested contractors located in the Sponsor’s County. Applications are available for those seeking to participate by calling the Program Operator or visiting the Program City of Tulare Housing Rehabilitation Program Guidelines 7 Operator’s website. The Program Operator will send notices to contractors on the Active Contractor List annually, which will request each contractor contact the Program Operator to confirm his or her interest in remaining on the Active Contractor List. Contractors who do not respond will be moved to the Inactive Contractor List.

Cost reasonableness is determined by comparing the bids received with the cost estimate prepared by the Program Operator. Bids should be within 10% of the Program Operator’s cost estimate, otherwise an explanation must be provided to the file for any bid selected exceeding 10% of the estimate. The homeowner is encouraged to accept the lowest reasonable bid.

The Program Operator determines eligibility of the contractor by contacting the State Contractors License Board and checking the Federal List of Debarred Contractors. The contractor is also required to provide a self-certification stating that he/she is not on the Federal debarred list. Once determined eligible, the contractor is then notified of provisional award of bid (pending loan approval).

Notices of non-award are mailed to participating contractors.

F. Loan Request/Approval
A report and loan request are prepared on behalf of the homeowner by the Program Operator. The loan request includes the cost of construction, a contingency fund, and other project costs (listed in Section 6.3.). Note: For HOME and CDBG, the project costs listed in Section 6.3 are considered activity delivery costs to be paid by the Sponsor and may not be charged to the homeowner’s loan. A Loan Review Committee meeting is scheduled to hear the loan request. Section 1.3 provides additional information on the loan approval process. Once approved, loan documents are executed and the loan is funded.

G. Pre-Construction Conference
A pre-construction conference is scheduled with homeowner, contractor, and Program Operator. The Program Operator reviews the Owner-Contractor Construction Contract, including the work write-up, start date, pay schedule, and date of completion, with the homeowner and contractor. The construction contract and Notice to Proceed are executed.

H. Start-Up/Field Inspections
The Program Operator monitors date of start-up and performs field inspections on a regular basis. The Program Operator will visit the job site regularly in order to check the scope of work, inspect materials, and to confirm the job is on schedule and within budget. The Program Operator works with the Sponsor’s Building Inspector to ensure the work meets building codes, while not exceeding funding limits.

City of Tulare Housing Rehabilitation Program Guidelines 8 The Program Operator reviews the work status with the homeowner and with the contractor in order to remedy any developing problems quickly and to ensure that both are satisfied with the construction process. At the completion of each phase, the Program Operator inspects the work and the homeowner authorizes contractor payments.

The Program Operator will refer back to original plans and specifications to verify the work was completed as contracted.

I. Change Orders
Written change orders are required when the homeowner requests any changes in the write-up, such as eliminating an item completely, eliminating one item and substituting another, or adding items. The change order will state the change and dollar value for the change. The change order must be signed by both the contractor and the homeowner, and submitted to the Program Operator for approval. If the change order exceeds the approved financing, the homeowner will be asked to provide additional funds or a report and request for additional funds may be presented to the Sponsor’s Loan Review Committee for approval prior to Program Operator signing-off on the change order.

J. Progress Payments
Ninety percent (90%) of the contract amount is distributed to the contractor in the form of progress payments during construction. The final ten-percent (10%) of the contract amount is set aside as a retention payment. The contractor requests a progress payment from the homeowner and notifies the Program Operator that he/she has done so. Upon favorable inspection by the homeowner, Program Operator, and Sponsor or Sponsor’s Building Inspector, the payment authorization is signed by the homeowner and submitted for payment.

K. Final Inspections/Notice of Completion/Final Payment When the project is completed, the Program Operator inspects the work item by item with the homeowner, the contractor, and/or the Sponsor. The Sponsor’s Building Inspector performs a final inspection. Any corrections or deficiencies are noted and corrected by the contractor. Upon favorable final inspections, a Notice of Completion is prepared, signed by the homeowner, and then recorded.

The final ten-percent (10%) retention payment is released 35 days after the recording of the Notice of Completion.

1.3. LOAN PROCESS
The Sponsor’s Loan Review Committee must approve all loans and grants. The Loan Review Committee may approve assistance with CDBG financing exceeding 100 percent of after-rehabilitation value as needed in cases where no other financial resources are available to cover the cost of the repairs and where clear and convincing documentation exists, justifying why the exception is needed.

City of Tulare Housing Rehabilitation Program Guidelines 9 However, if the project is CalHome-funded, the total financing cannot be more than 105 percent of the after- rehabilitation value. For HOME-funded loans, the total financing cannot be more than 100 percent of the after-rehabilitation value, unless per HOME Management Memorandum 13-01 at https://www.hcd.ca.gov/grants-funding/grantsmanagement-memos/docs/Memo_13-01_re_grants_for_OOR.doc the entire HOME assistance amount is granted rather than loaned, due to a lack of any equity after rehabilitation, based on existing loans on the property and an after-rehabilitation value appraisal. In addition, the amount of HOME assistance, including Sponsor’s claimed Activity Delivery Costs, cannot exceed the Sponsor’s County HOME Per-Unit Subsidy Limits and the after-rehabilitation value cannot exceed the HOME Homeownership Value Limits. See Attachment C for current limits and a link to the HCD Limits webpage.

In order to obtain financing, applicants must meet all property and eligibility guidelines in effect at the time the application is considered. Homeowners will be provided written notification of approval or denial. Any reason for denial will be provided to the applicant in writing.

1.4. CONFLICT OF INTEREST REQUIREMENTS
When the Sponsor’s program contains Federal funds, the applicable Conflict of Interest requirements of 24 CFR section 570.611 shall be followed for CDBG assistance. For CalHome-funded Programs, the applicable Conflict of Interest requirements of Public Contract Code sections 10410, 10411, and 10430 (e) shall be followed.

For HOME assistance, section 92.356 of the HOME Final Rule shall be followed, as follows:
(a) Conflicts prohibited. No persons described in paragraph (b) of this section who exercises or has exercised any functions or responsibilities with respect to activities assisted with HOME funds or who are in a position to participate in a decision making process or gain inside information with regard to these activities, may obtain a financial interest or benefit from a HOME-assisted activity, or have a financial interest in any contract, subcontract or agreement with respect to the HOME-assisted activity, or the proceeds from such activity, either for themselves or those with whom they have business or immediate family ties, during their tenure or for one year thereafter. Immediate family ties include (whether by blood, marriage or adoption) the spouse, parent (including stepparent), child (including stepchild), brother, sister (including a stepbrother or stepsister), grandparent, grandchild and in-laws of a covered person. (b) Persons covered. The conflict of interest provisions of paragraph (a) of this section apply to any person who is an employee, agent, consultant, officer, or elected official or appointed official of the participating jurisdiction, State recipient, or subrecipient which are receiving HOME funds.
(c) Exceptions: Threshold requirements. Upon the written request of the participating jurisdiction to HCD, HUD may grant an exception to the provisions of paragraph (a) of City of Tulare Housing Rehabilitation Program Guidelines 10 this section on a case-by-case basis when it determines that the exception will serve to further the purposes of the HOME Investment Partnerships Program and the effective and efficient administration of the participating jurisdiction's program or project. See 24 CFR section 92.356(d)(1-6) for details on the documentation needed in order to submit an exception request to HUD.

A contractor with a vested interest in the property cannot bid on a rehabilitation job.

Such a contractor may act as owner/builder, subject to standard construction procedures.

Owner/builders are reimbursed for materials purchased which are verified by invoice/receipt and used on the job. Reimbursement occurs after the installation is verified by the Program Operator to be part of the scope of work. Owner/builders are not reimbursed for labor.

2.0. APPLICANT QUALIFICATIONS

2.1. INCOME LIMITS
All homeowners must certify that they meet the household income eligibility requirements for the applicable HCD program(s) and have their household income documented. The income limits in place at the time of loan approval will apply when determining applicant income eligibility. All applicants must have incomes at or below 80% of the County’s area median income (AMI), adjusted for household size, as published by HCD each year. See Attachment C for current limits and a link to the HCD Limits webpage.

Household: means one or more persons who will occupy a housing unit. For HOME and CDBG, unborn children count in family size determination. For CalHome, unborn children are not counted.

Annual Income: Generally, the gross amount of income of all adult household members that is anticipated to be received during the coming 12-month period.

2.1.1 OWNER-OCCUPIED REQUIREMENTS
Owner-Occupant - to be eligible, household income must be equal to or less than the applicable HCD income limits. Owner will be required to provide income documentation. Refer to Income Inclusions and Exclusions for further guidance to the types of incomes to be included or excluded when calculating gross annual income. See Attachment A for HOME and CDBG. See Attachment A-1 for CalHome. Refer to Asset Inclusions and Exclusions for further guidance to the types of assets to be included or excluded when calculating gross annual income. See Attachment B.

Owner-occupants’ housing and/or debt ratios are not considered, nor is a credit report required, as the funding provided creates no additional monthly financial obligation. If an owner-occupant has a mortgage, it is verified that all payments are current and that no late payments have been received in the past twelve months.

City of Tulare Housing Rehabilitation Program Guidelines 11 2.2. INCOME QUALIFICATION CRITERIA
Projected annual gross income of the applicant household will be used to determine whether they are above or below the published HCD income limits. Income qualification criteria for HOME and CDBG, as shown in the most recent HCD program-specific guidance at https://www.hcd.ca.gov/grants-and-funding/income-limits/incomecalculation-and-determination-guide, will be followed to independently determine and certify the household’s annual gross income. Income will be verified by reviewing and documenting tax returns, copies of wage receipts, subsidy checks, bank statements and third-party verification of employment forms sent to employers. All documentation shall be dated within six months prior to loan closing and kept in the applicant file and held in strict confidence.

A. HOUSEHOLD INCOME DEFINITION:

Household income is the annual gross income of all adult household members that is projected to be received during the coming 12-month period, and will be used to determine program eligibility. Refer to Income Inclusions and Exclusions for further guidance to the types of incomes to be included or excluded when calculating gross annual income. For those types of income counted, gross amounts (before any deductions have been taken) are used. Two types of income that are not considered would be income of minors and of live-in aides. Certain other household members living apart from the household also require special consideration. The household’s projected ability to pay must be used, rather than past earnings, when calculating income.

Housing and/or debt ratios are not considered as the funding provided creates no additional monthly financial obligation. If a homeowner has a mortgage, creditworthiness is verified by ensuring that all payments are current and that no late payments have been received in the past twelve months.

See Attachment A: HOME and CDBG 24 CFR Part 5 Annual Income Inclusions and Exclusions and Attachment A-1: CalHome Title 25 Section 6914 Annual Income inclusions and Exclusions (State)
B. ASSETS:

There is no asset limitation for participation in the Program. Income from assets is, however, recognized as part of annual income under the Part 5 definition. An asset is a cash or non-cash item that can be converted to cash. The value of necessary items such as furniture and automobiles are not included. (Note: it is the income earned – e.g. interest on a savings account – not the asset value, which is counted in annual income.)
An asset’s cash value is the market value less reasonable expenses required to convert the asset to cash, including: Penalties or fees for converting financial holdings and costs for selling real property. The cash value (rather than the City of Tulare Housing Rehabilitation Program Guidelines 12 market value) of an item is counted as an asset.

See Attachment B: Part 5 Annual Income Net Family Asset Inclusions and Exclusions

2.3. HOMEOWNER ELIGIBILITY AND RESIDENCY REQUIREMENTS
The Sponsor’s Housing Rehabilitation Program allows for owner-occupied properties to participate in the Program. Owner-occupied units must be the owner’s principal place of residence. A photocopy of a recent utility bill will verify proof of occupancy. No unit to be rehabilitated will receive financial assistance if it is currently occupied by an overincome household or does not meet the eligibility standards outlined in these guidelines.

2.3.1 OWNER-OCCUPIED
A. Continued residency is monitored annually per Attachment F for the term of the loan. Occupancy will be verified by the submission of the following:

1. Proof of occupancy in the form of a copy of a current utility bill; and

2. Statement of unit's continued use as primary residence of the owner.

B. In the event that an homeowner sells, transfers title, or discontinues residence in the rehabilitated property for any reason, the loan becomes due and payable, unless the following conditions are met:

The homeowner who received the loan dies and the heir to the property meets income requirements and intends to occupy the home as his/her principal residence. If the heir does not meet applicable eligibility requirements, the loan is due and payable. Note: Loans provided by CalHome are not assumable.

C. If a homeowner converts the property to a rental unit, or any commercial or nonresidential use, the loan is due and payable, unless the loan was funded with CDBG and tenant and homeowner meet eligibility requirements as described in Section 2.3.2. below.

If the loan is funded with a CalHome Loan it is not transferable except under the following limited circumstances:
(a) The transfer of the Property to the surviving joint tenant by devise, descent or operation of the law, on the death of a joint tenant;
(b) A transfer of the Property where the spouse becomes an owner of the property;
(c) A transfer of the Property resulting from a decree of dissolution of marriage, legal separation or from an incidental property settlement agreement by which the spouse becomes an owner of the Property; or
City of Tulare Housing Rehabilitation Program Guidelines 13 (d) A transfer to an inter vivos trust in which the Borrower is and remains the beneficiary and occupant of the property.

3.0. PROPERTY ELIGIBILITY

3.1. CONDITIONS
A. No unit will be eligible if a household’s income exceeds the prescribed income limits listed in Attachment C.

B. Units to be rehabilitated must be located within the incorporated areas of the Sponsor’s jurisdiction.

C. Property must contain a legal residential structure intended for continued residential occupancy.

D. All repair work will meet Local Building Code standards. At a minimum, health and safety hazards must be eliminated. For CDBG the priority will be the elimination of health and safety hazards. Sponsor may also require elimination of code deficiencies. When HOME funds are used for housing rehabilitation, the property must meet all applicable current codes, rehabilitation standards, ordinances, and zoning ordinances at the time of project completion. However, if certain components of the house are sound and were built to code prescribed at the time of installation, no repair or alteration will be made to those components.

Section 8 Housing Quality Standards may be required on rentals by Sponsor when CDBG funds are used.

3.2. ANTI-DISPLACEMENT POLICY AND RELOCATION ASSISTANCE Tenants will be informed of their eligibility for temporary relocation benefits if occupancy during rehabilitation constitutes a danger to health and safety of occupants or public danger or is otherwise undesirable because of the nature of the project. Relocated persons will receive increased housing costs, payment for moving and related expenses and appropriate advisory services, as detailed in the Sponsor's "Residential Antidisplacement and Relocation Assistance Plan" (Attachment E).

Owner-occupants are not eligible for temporary relocation benefits, unless health and safety threats are determined to exist by the Program Operator. In cases where relocation is determined to be necessary by the Sponsor/Program Operator, assistance may be provided for actual costs incurred from the applicant’s loan proceeds or as a grant (see Section 4.4. for allowable grants). HOME-funded projects will provide relocation assistance in the form of a grant, which shall be included in the maximum assistance amount.

Note: Relocation benefits are not a requirement under CalHome, but are acceptable and may be covered by loan proceeds.

City of Tulare Housing Rehabilitation Program Guidelines 14 NOTIFICATION AND DISCLOSURES - Not required by CalHome A. Occupants of units constructed prior to 1978 will receive proper notification of Lead-Based Paint (LBP) hazards as follows:

The Lead Hazard Information Pamphlet published by the EPA/HUD/Consumer Product Safety Commission will be given to all owners regardless of the cost of rehabilitation or paint test findings. If lead-based paint is found through testing or if presumed, a Notice of Lead Hazard Evaluation or Presumption will also be supplied.

When Lead hazards are present, a Notice of Lead Hazard Reduction Activity and a Lead Hazard Evaluation Report will also be provided (Attachment I).

B. Tenants located in properties that will receive housing rehabilitation will be provided a notice outlining their relocation rights and benefits (Attachment E).

3.4. ENVIRONMENTAL REVIEW
The Program Operator must conduct an environmental review in order to comply with 24 CFR section 92.352(a), which requires that the environmental effects of, and upon, each activity carried out with HOME funds be assessed in accordance with the provision of the National Environmental Policy Act of 1969 (NEPA) and the related authorities listed in HUD’s implementing HOME regulations at 24 CFR Part 58.

The Program Operator must use the Categorically Excluded, Subject To 58.5 (“CEST”) format found on the HUD Environmental Review page at
https://www.hudexchange.info/programs/environmental-review/, and Sponsor’s NEPA Certifying Officer must sign the completed certification. Sponsor must also use applicable worksheets at https://www.hudexchange.info/programs/environmentalreview/federal-related-laws-and-authorities/,for each CEST factor.

The Sponsor’s HOME Standard Agreement requires that HOME Program written approval of each project’s environmental review package is received, prior to committing funds to any rehabilitation project. HCD recommends that Program pre-approval of the environmental review package is obtained prior to the NEPA Certifying Officer signature.

The default NEPA Certifying Officer, until and unless delegated by an individual still in that position or by the governing body, is only the mayor, City Manager or City Administrator, County Administrative Officer or equivalent, or the Chair of the Board of Supervisors. NEPA Certifying Officer delegations must contain HUD-required language, and must be separate from other signatory delegations. Required language is available from the HOME Program.

The Sponsor must also document in each project file and its Environmental Review Record compliance with, or project or programmatic exemption from, California Environmental Quality Act (CEQA) requirements.

City of Tulare Housing Rehabilitation Program Guidelines 15 4.0. THE PROGRAM LOAN

4.1. MAXIMUM AMOUNT OF PROGRAM ASSISTANCE
An eligible homeowner may qualify for the full cost of rehabilitation/reconstruction work needed to comply with State and local codes and ordinances. Maximum assistance shall not exceed the Sponsor’s County HOME Maximum Per-Unit Subsidy Limitsin Attachment C, which has a link to the HCD Limits webpage. For CDBG-funded programs, the maximum assistance for rehabilitation/reconstruction will not exceed $320,000.

4.2. AFFORDABILITY PARAMETERS FOR HOMEOWNERS
A. Total indebtedness against property shall not exceed 100 percent of after- rehabilitation value as determined by “Estimates of value” or an appraisal, for CDBG or HOME projects. The exception for HOME loans is per HOME Management Memorandum 13-01 at https://www.hcd.ca.gov/grants-funding/grants-managementmemos/docs/Memo_13-01_re_grants_for_OOR.doc wherein the entire HOME assistance amount is granted rather than loaned, due to a lack of any afterrehabilitation equity based on existing loans on the property. An estimate of afterrehab value will be made prior to making a commitment of funds using the method outlined in Section 4.5. Note: This does not apply to CalHome projects.

B. HOME-funded units’ after-rehabilitation values shall not exceed the HOME Program’s Homeownership Value Limits for Sponsor’s County as updated by HUD and published on the HCD WebsiteSee Attachment C for current limits, which may reflect temporary waivers not published on the HCD Website, and for a link to the HCD Limits webpage.

For CalHome-funded Programs, the maximum after-rehab value of a home shall be set at 100% of the current median sales price of a single family home located in the county the CalHome Program is serving, which is established by comparable sales or information provided by the California Real Estate Association. https://www.car.org/en/marketdata/data/countysalesactivity C. Total indebtedness against property shall not exceed 105 percent of the afterrehabilitation value as determined by an appraisal for CalHome projects. An estimate of After-Rehab Value will be made prior to making a commitment of funds using the method outlined in Section 4.5. Note: This does not apply to HOME or CDBG projects.

D. Costs may be supplemented with personal financing, or with other loan or grant programs, which are sources of leverage for the Sponsor.

E. Any bid within 10% of the Program Operator’s estimate may be selected, otherwise an explanation must be provided to the file for a bid selected exceeding 10% of the estimate.

City of Tulare Housing Rehabilitation Program Guidelines 16 4.3. RATES AND TERMS

4.3.1. OWNER-OCCUPANTS
A. Homeowners are eligible for Deferred Payment Loans (DPL), at zero interest, evidenced by a Promissory Note and secured by a Deed of Trust, with no payback required for 30 years unless the borrower sells or transfers title or discontinues residence in the dwelling.

Payments may be made voluntarily on a DPL. Note: If it is determined by the Sponsor that repayment of a CalHome or CDBG Program loan at the maturity date causes a hardship to the homeowner, the Sponsor may opt the following:

1. Amend the note and deed of trust to defer repayment of the amount due at maturity, that is balance of the original principal plus the accrued interest, for up to an additional 30 years (at 0% additional interest). This may be offered one time;

2. Convert the debt at loan maturity; that is the balance of the original principal plus any accrued interest, to an amortized loan, repayable in 15 years at 0% additional interest.

B. If the homeowner dies, and if the heir(s) to the property live(s) in the house and is/are income eligible, the heir(s) may be permitted, upon approval of the Sponsor, to assume the loan at the rate and terms the heir(s) qualifies for under current participation guidelines. Note: CalHome loans are not assumable.

C. If the homeowner dies and the heir(s) is/are not income eligible, the loan becomes all due and payable.

D. If a homeowner converts the rehabilitated property to any residential-rental, commercial or non-residential use, the loan becomes all due and payable, unless they meet requirements outlined in Section 2.3.2.

E. As specified in the Rehabilitation Loan Agreement, all applicants who participate in the Program must maintain the property at post-rehabilitation conditions for the term of the loan. Should the property not be maintained accordingly, the loan shall be considered in default and becomes all due and payable, and if necessary, foreclosure proceedings will be initiated. A method of inspection will be established by the Sponsor.

F. For CalHome, loans are not assumable. The following transfers of interest shall not require the repayment of the CalHome Program loan:
1) transfer to a surviving joint tenant by devise, descent, or operation of law on the death of a joint tenant;
2) a transfer in which the transferee is a person who occupies or will occupy the property, which is:
(i) a transfer where the spouse becomes an owner of the property; City of Tulare Housing Rehabilitation Program Guidelines 17 (ii) a transfer resulting from a decree of dissolution of marriage, legal separation agreement, or from an incidental property settlement agreement by which the spouse becomes an owner of the property; or (iii) a transfer into an inter vivos trust in which the Borrower is and remains the beneficiary and occupant of the property.

4.4. GRANTS
A. CDBG-funded programs may provide grants as follows:

1. A grant of up to $50,000 is available for any one of the following qualifying factors:
a) Senior Citizen - at least 62 years old; or
b) Handicapped – for only handicap modifications to a house with one or more physically handicapped occupants who would function more independently if such modifications were installed; or
c) Lowest Targeted Income Group – with gross annual income less than 50 percent of County median income; or
d) Equity maintenance – if financing rehabilitation entirely with a loan would cause indebtedness to exceed 100% of after-rehabilitation value; or
e) Curb, gutter and sidewalk – when curb, gutter and/or sidewalk are required by City code; or
f) Building permit, school fees, appraisals, property report/title insurance, building permits, termite report, land survey, grading plans, recording fees and/or flood insurance; or
g) Emergencies – failure of a major household component that would require the participant to live without basic plumbing, electrical, heating, cooling, or security. (These funds are not for use during a normal rehabilitation, they are for true emergency situations, such as a failed sewer line or water heater, blown electrical panel, etc.)

2. Grants of up to $10,000 are available for Fire Sprinkler installation and associated costs – for reconstruction projects, as required by CCR, Title 24, Part

2.5 of the 2010 California Residential Code.

3. Grants are available for the repair, replacement, or abandonment of domestic water wells and/or associated costs (such as water pump lowering) based on invoices from contracted well drillers and/or water pump installers. The Program Operator must approve a total cost estimate from a contracted well driller and/or water pump installer prior to financing approval to ensure cost reasonableness.

4. Grants of up to $7,500 are available for Asbestos containment and/or removal.

City of Tulare Housing Rehabilitation Program Guidelines 18 B. HOME and CDBG provide grants for all actual costs of lead-based paint evaluation and reduction activities.

C. HOME and CDBG provide grants for relocation assistance. See Relocation Assistance Plan, Attachment E.

1. Owner-Occupant – Limit of $3,000.

2. Residential Tenant – Assistance will be provided at the level necessary to comply with the Uniform Relocation Act (URA) and Section 104(d) of the Housing and Community Development Act of 1974. Note: HOME funds cannot be used for tenant-occupied units.

D. HOME-funded projects include grants, if necessary, to cover the costs of financing in excess of available equity. Available equity will be determined by subtracting the current total indebtedness from the after-rehabilitation value. Grants provided may be up to 25 percent of the applicable HUD Per-Unit Subsidy Limits established pursuant to 24 CFR 92.250 (a). This grant amount is in addition to any grant funds provided pursuant to Section 4.4.B. and 4.4.C.

E. Grants are not available in CalHome-funded programs.

4.5. APPRAISAL
A. The After-Rehab Value for rehabilitation projects is determined using the “Estimates of value” method. The Sponsor or Program Operator determines estimates of value based on the sale prices of at least three (3) comparable properties, sold within the last six months (within one year of the assistance date, which is the date the promissory note is signed), and located within one mile of the subject property. The participants’ file will include the estimate of value and document the basis for the value estimates.

The purpose of the “Estimates of value” is to determine that the After-Rehabilitation Value Limit of the housing unit will not exceed the permitted amount per HCD Program regulations (See Attachment C). If three comparable properties cannot be found, or if there is any question regarding the After-Rehab Value, the ARV will be determined by a licensed appraiser, as described in Section 4.5.B. below.

B. A licensed appraiser determines the After-Rehab Value for rehabilitation projects, when the “Estimates of value” method cannot be used. For rehabilitation projects the appraiser determines the value of the unit with the rehabilitation building plans and specifications included. For HOME only, the cost of the appraisal will be paid by the Sponsor, not by the homeowner. The purpose of the appraisal is to determine that the after-rehabilitation value of the housing unit will not exceed the permitted amount per HCD Program regulations (See Attachment C), and that the combined loans will not exceed the maximum combined loan-to-value limit, as described in Section 4.2.A above.

C. The After-Rehab Value for reconstruction projects is determined by a licensed appraiser. The After-Rehab Value for reconstruction projects is determined by an appraisal completed off the building plans and specifications for the new home. For HOME only, the cost of the appraisal will be paid by the Sponsor, not by the City of Tulare Housing Rehabilitation Program Guidelines 19 homeowner. The purpose of the appraisal is to determine that the AfterRehabilitation Value Limit of the housing unit will not exceed the permitted amount per HCD Program regulations (See Attachment C).

4.6. INSURANCE

4.6.1. HAZARD INSURANCE
The homeowner shall maintain hazard insurance on the property for the duration of the Program loan(s). This insurance must be an amount adequate to cover all encumbrances on the property. The insurer must identify the Sponsor as Loss Payee for the amount of the Program loan(s). Evidence of this shall be provided to the Sponsor.

In the event the applicant fails to make the hazard insurance premium payments in a timely fashion, the Sponsor at its option, may make such payments for a period not to exceed 60 days. The Sponsor may, in its discretion and upon the showing of special circumstances, make such premium payments for a longer period of time. Should the Sponsor make any payments, it may, in its sole discretion, add such payments to the principal amount that the applicant is obligated to repay the Sponsor under this Program.

The premium may be paid by the Program loan for one year. Note: HOME and CDBG funds cannot be used to pay insurance cost beyond those identified as initial loan costs. Note: CalHome funds can not be used to pay insurance at any time.

4.6.2. FLOOD INSURANCE
For homes in a 100-year flood zone, the owner is required to maintain flood insurance in an amount adequate to secure the Program loan and all other encumbrances. This policy must designate the Sponsor as Loss Payee and a binder shall be provided to the Sponsor and maintained in the borrowers file. The premium may be paid by the Program loan for one year. Note: HOME funds cannot be used to pay insurance cost beyond those identified as initial loan costs. Note: CalHome funds can not be used to pay insurance at any time.

4.7. LOAN SECURITY
A. Loan security for all owner-occupied rehabilitation stick-built homes will be secured by the real property and improvements, and will also include a Deed of Trust, Promissory Note and Loan Agreement in favor of the Sponsor.

B. A manufactured home in a mobile home park or on leased land that is not on a permanent foundation will be secured by an HCD 480.7 or an HCD 484 Statement of Lien, and will also include a Promissory Note and Loan Agreement.

C. Entering a subordinate lien is acceptable. However, the Sponsor will not subordinate a first lien position once established.

5.0. PROGRAM LOAN SERVICNG AND MAINTENANCE
City of Tulare Housing Rehabilitation Program Guidelines 20 5.1. PAYMENTS ARE VOLUNTARY
Borrowers may begin making voluntary payments at any time.

5.2. RECEIVING LOAN REPAYMENTS
A. Program loan payments will be made to:

City of Tulare
411 E. Kern Avenue
Tulare, CA 93247
B. The Sponsor will be the receiver of loan payments or recapture funds and will maintain a financial record-keeping system to record payments and file statements on payment status. Payments shall be deposited and accounted for in the Sponsor’s appropriate Program Income Account, as required by all three HCD programs. The Program Sponsor will accept loan payments from borrowers prepaying deferred loans, from borrowers making payments in full upon sale or transfer of the property, and homeowners of tenant-occupied units. All loan payments are payable to the Sponsor. The Sponsor may at its discretion, enter into an agreement with a third party to collect and distribute payments and/or complete all loan servicing aspects of the Program.

5.3. LOAN SERVICING POLICIES AND PROCEDURES
See Attachment F for local loan servicing policies and procedures. While the attached policy outlines a system that can accommodate a crisis that restricts borrower repayment ability, it should in no way be misunderstood: The loan must be repaid. All legal means to ensure the repayment of a delinquent loan as outlined in the Loan Servicing Policies and Procedures will be pursued.

5.4. LOAN MONITORING PROCEDURES
Homeowners will be required to submit each of the following to the Sponsor at the time of annual occupancy verification per Attachment F:
• Proof of occupancy in the form of a copy of a current utility bill; • Statement of unit's continued use as a residence;
• Declaration that other title holders do not reside on the premises; • Verification that Property Taxes are current; and
• Verification of current required insurance policies.

City of Tulare Housing Rehabilitation Program Guidelines 21 5.5. DEFAULT AND FORECLOSURE
If an owner defaults on a loan, and foreclosure procedures are instituted, they shall be carried out according to the Program Foreclosure Policy adopted by the Sponsor, and attached to these guidelines as Attachment G.

5.6. SUBORDINATIONS
The Sponsor may approve a request to subordinate a loan, in order for the owner to refinance the property, under the following conditions:

A. The lien position of the Sponsor loan will remain the same or be advanced.

B. The new primary loan is no greater than the balance of the loan being refinanced, except the costs of refinancing the loan may be added to the principal balance.

C. The purpose of the new primary loan is to reduce the interest rate being paid and/or reduce the owner's payment.

D. The refinanced loan must have an impound account for taxes and insurances.

E. The refinancing terms must be acceptable to the Sponsor.

F. CDBG allows refinancing with CDBG funds in conjunction with only rehabilitation of the unit.

6.0. CONSTRUCTION

6.1. STANDARDS
A. All repair work will meet Local Building Code standards. At a minimum, health and safety hazards must be eliminated. For CDBG and CalHome the priority will be the elimination of health and safety hazards. Sponsor may also require elimination of code deficiencies. When HOME funds are used for housing rehabilitation, the property must meet all applicable current codes, rehabilitation standards, ordinances, and zoning ordinances at the time of project completion.

However, if certain components of the house are sound and were built to code prescribed at the time of installation, no repair or alteration will be made to those components. Section 8 Housing Quality Standards may be required on rentals by Sponsor when CDBG funds are used.

B. Contracting Process

1. Contracting will be done on a competitive basis.

2. The homeowner will be the responsible agent, but the Sponsor and/or its Program Operator will prepare the work write-up, prepare and advertise the bid package, and assist the owner in negotiating the construction contract.

City of Tulare Housing Rehabilitation Program Guidelines 22 3. The Sponsor does not warrant any construction work, or provide insurance coverage.

C. Approved Contractors

1. Contractors are required to be licensed with the State of California, and be active and in good standing with the Contractors’ License Board.

2. Contractors will be checked against HUD’s list of federally debarred contractors. No award will be granted to a contractor on this list.

3. Contractors must have public liability and property damage insurance, and worker’s compensation, unemployment and disability insurance, to the extent required by State law.

4. Contractor must agree to comply with all federal and state regulations.

D. Occupants of units constructed prior to 1978 will receive proper notification of Lead-Based Paint (LBP) hazards as identified in Section 3.3.A. Note: Units funded solely with CalHome funds are not required to comply with LBP regulations.

E. Units constructed prior to 1978 will also be inspected according to the following HUD regulations. Note: Units funded solely with CalHome funds are not required to comply with LBP regulations. For CDBG-funded programs, please refer to Chapter 20, Lead-Based Paint Requirements for guidance in the CDBG Grant Management Manual.

1. If the total amount of Federal assistance or the total amount of rehabilitation hard cost is up to and including $5,000, the following is required:
(a) Paint testing or presume LBP;
(b) Clearance of disturbed work areas; and
(c) Notifications listed in Section 3.3.A.

2. If the amount of Federal assistance or the total amount of rehabilitation hard cost is more than $5,000 up to and including $25,000, the following is required:
(a) Paint testing or presume LBP;
(b) Risk assessment; and
(c) Clearance of unit.

If LBP hazards are identified, interim controls will be implemented. This level will also require a notice of “Abatement of Lead Hazards Notification” at least five days prior to starting work.

3. If the amount of Federal assistance or the total amount of rehabilitation hard cost is more that $25,000, the following is required:
(a) Items (a), (b), and (c) of 2. above;
(b) Abatement of all LBP hazards identified or produced; City of Tulare Housing Rehabilitation Program Guidelines 23 (c) Use of interim controls on exterior surfaces not disrupted by rehab; and all notices listed above in Sections 3.3.A. and 6.1.F.2.

4. All paint tests that result in a negative finding of lead-based paint are exempt from any and all additional requirements. If defective paint surfaces are found, they will be properly treated or abated. A State-certified Inspector/Assessor will perform all paint testing, risk assessments, and clearances. A trained supervisor may oversee interim controls; however, a certified supervisor and workers will perform all abatement.

6.2. ELIGIBLE CONSTRUCTION COSTS
“Rehabilitation” means, in addition to the definition in Title 25, Section 50096 of the California Health and Safety Code, repairs and improvements to a manufactured home necessary to correct any condition causing the home to be substandard pursuant to Section 1704 of Title 25, California Code of Regulations. Rehabilitation also includes room additions to alleviate overcrowding. Rehabilitation also means repairs and improvements where necessary to meet any locally-adopted standards used in local rehabilitation programs. Rehabilitation does not include replacement of personal property.

Rehabilitation includes reconstruction. Federal law and policy allows the use of HOME funds to demolish and reconstruct owner-occupied residential structures. Reconstruction is defined as the demolition and construction of a structure. The Sponsor and/or Program Operator must document that the reconstruction costs are less than the cost to rehabilitate the existing substandard housing. This will be done using the State’s CDBG Test for Reconstruction, for projects funded with CDBG funds; or, using the State’s HOME Test for Reconstruction, for projects funded with HOME funds, for which advance HOME Program written approval is required.

Additionally, for HOME-funded projects, the Sponsor must determine that the project’s value after reconstruction (housing and land combined) is less that the HOME Homeownership Value Limits for the Sponsor’s jurisdiction (see Attachment C).

The residential structure to be reconstructed must be a structure with cooking, eating, sleeping, and sanitation facilities which has been legally occupied as a residence within the preceding 12 months. Fifth wheels or recreational vehicles, for example, are not considered dwellings and therefore are not eligible under this Program.

Like for like requires that the structure being demolished must be replaced with a like structure (replace manufactured housing with manufactured housing, for example).

However, additions may be approved by the HCD Program when required by Codes/Ordinances or to alleviate overcrowding (see Attachment C).

Temporary relocation benefits must be planned for and budgeted into the total allowable subsidy for the project, but if required would be in the form of a grant.

City of Tulare Housing Rehabilitation Program Guidelines 24 Depending on the outcome of the environmental review and completion of the HUD CEST form, any rehabilitation or reconstruction project may require an Authority to Use Grant Funds from the Department before funds are committed to the project.

Allowable rehabilitation\reconstruction costs include:

A. Cost of building permits and other related government fees.

B. Cost of architectural, engineering, and other consultant services which are directly related to the rehabilitation of the property.

C. For CDBG and CalHome, costs associated with the repair, replacement, or abandonment of domestic water wells and/or associated costs (such as water pump lowering).

D. Rehabilitation or Replacement of a manufactured home not on a permanent foundation. Rehabilitation of a manufactured home may include the replacement of the unit with a used manufactured home and the cost to repair it, as long as the unit has been occupied and not used as a demonstration model. Should the unit meet the criteria for reconstruction a new manufactured home can be used for replacement and all cost associated with the purchase and transportation can be added to the loan. For CalHome and CDBG, manufactured housing on permanent foundations may be replaced by stick-built structures.

CalHome requires the following for manufactured housing/mobile home to stick-built replacements:
1) Verification that the owner of the mobile home is also the landowner. The registration certificate and a preliminary title report must be submitted with the Borrower summary package. Any past due registration fees must be paid. 2) Provide written justification as to why the mobile home is being replaced and not repaired.

3. Ensure the new structure is “reasonable” for the size of the current household.

E. Owner-occupied rehabilitation activity delivery fees, pursuant to Section 7733(f), as reimbursement to the Sponsor for the actual costs of services rendered to the homeowner that are incidentally but directly related to the rehabilitation work (e.g. planning, engineering, construction management, including inspections and work write-ups).

F. Rehabilitation will address the following issues in the order listed. Eligible costs are included for each item.

1. Health and Safety Issues
Eligible costs include, but are not limited to, energy-related improvements, lead-based paint hazard evaluation and reduction activities, improvements for handicapped accessibility, and repair or replacement of major housing systems.

City of Tulare Housing Rehabilitation Program Guidelines 25 Per the federal HOME Regulations at 24 CFR section 92.251(b), Major Systems are:
•structural support
•roofing
•cladding and weatherproofing (e.g., windows, doors, siding, gutters) •plumbing
•electrical
•heating, ventilation, and air conditioning.

Upon project completion, each of the major systems must have a remaining useful life for a minimum of five (5) years, so these systems must be rehabilitated or replaced as part of the rehabilitation work in order to achieve this requirement.

A driveway may be considered part of rehabilitation if it is determined to be a health and safety issue.

2. Code and Regulation Compliance
Eligible costs include, but are not limited to, additional work required to rehabilitate and modernize a home to bring it into compliance with current building codes and regulations. Painting and weatherization are included.

3. Demolition
Eligible costs include, but are not limited to, the tear down and disposal of dilapidated structures when they are a part of the reconstruction of an affordable housing unit. If a garage or carport is detached, it may not be rehabilitated but may be demolished, if it is determined to be a health and safety issue.

4. Upgrades (based on overcrowding)
Eligible costs include additional bedrooms and bathrooms if the need can be demonstrated per HUD’s or Sponsor’s overcrowding guidelines listed in Attachment C. The Program will not fund additions to a home for a den or family room, or for any luxury items.

The CalHome Program’s requirement is that a bedroom or bathroom can be added to omit overcrowding, and this is up to the Recipient to decide what is overcrowding.

5. General Property Improvements
Eligible costs include, but are not limited to: addition or replacement of an oven, stove, dishwasher, or fixture; replacing floor coverings; painting; and City of Tulare Housing Rehabilitation Program Guidelines 26 repair or installation of fencing.

All improvements must be physically attached to the property and permanent in nature. Non-code general property improvements (including fencing, landscaping, driveway, etc.) will be limited to 15 percent of the rehabilitation loan amount. Any cash contribution by the property owner will be considered a general property improvement and be included in this percentage. Luxury items are not permitted. Items such as stoves and dishwashers that are not built-in may be replaced due only to incipient failure or documented medical condition of the homeowner, and must be of moderate quality.

For HOME and CalHome, replacement of a refrigerator is not allowed. For CalHome, repair or installation of fencing is not allowed.

6. Rehabilitation Standards
All repair work related to health and safety conditions will meet Local Building Code standards. The priority will be the elimination of all health and safety hazards and code compliance, which is required for HOME-funded projects.

6.3. ELIGIBLE PROJECT COSTS
Examples of eligible project costs for all administrative expenses related to the paperwork for processing and insuring a loan application are listed below. For HOME, these costs are considered activity delivery costs and may not be charged to the homeowner’s loan.
• Appraisal
• Property Report/Title Insurance
• Building Plan
• Termite Report
• Land Survey
• Grading Plan
• Recording Fees
• Hazard/Course of Construction Insurance
• Flood Insurance, as applicable (not allowed with CalHome or HOME funds)
Costs are based on charges currently incurred by the Sponsor, or its Program Operator, for these products and/or services. Except for HOME loans, any cost increases charged to the Sponsor/Program Operator for these products and/or services will be passed on to the homeowner and included in the loan. All fees are subject to change and are driven by the market.

City of Tulare Housing Rehabilitation Program Guidelines 27 6.4. REPAIR CALLBACKS
Contractors will comply with State law regarding all labor and material warranties. All labor and material shall meet FHA minimum specifications.

7.0. EXCEPTIONS AND SPECIAL CIRCUMSTANCES

7.1. AMENDMENTS
The Sponsor may make amendments to these Participant Guidelines. Any changes made shall be in accordance with federal and state regulations, shall be approved by the Sponsor’s Loan Committee and/or local governing body and submitted to HCD for approval.

7.2. EXCEPTIONS
Any case to which a standard policy or procedure, as stated in the guidelines, does not apply or an applicant treated differently from others of the same class would be an exception.

7.2.1 PROCEDURES FOR EXCEPTIONAL CIRCUMSTANCES
A. The Sponsor or its Program Operator may initiate consideration of an exception and prepare a report. This report shall contain a narrative, including the Sponsor’s/Program Operator’s recommended course of action and any written or verbal information supplied by the applicant.

B. The Sponsor shall make a determination of the exception based on the recommendation of the Program Operator. The request can be presented to the Sponsor’s loan committee and/or governing body for decision.

8.0. DISPUTE RESOLUTION AND APPEALS PROCEDURES

8.1. PROGRAM COMPLAINT AND APPEAL PROCEDURE
Complaints concerning the Sponsor’s Rehabilitation Program should be made to the Program Operator first. If unresolved in this manner, the complaint or appeal shall be made in writing and filed with the Sponsor. The Sponsor will then schedule a meeting with the Sponsor’s Loan Review Committee. Their written response will be made within thirty (30) working days. If the applicant is not satisfied with the committee's decision, a request for an appeal may be filed with the local governing body. Final appeal may be filed in writing with HCD within one year after denial or the filing of the Project Notice of Completion.

City of Tulare Housing Rehabilitation Program Guidelines 28 8.2. GRIEVANCES BETWEEN PARTICIPANTS AND CONSTRUCTION

CONTRACTOR
Contracts signed by the contractor and the participant include the following clause, which provides a procedure for resolution of grievances:

Any controversy arising out of or relating to this Contract, or the breach thereof, shall be submitted to binding arbitration in accordance with the provisions of the California Arbitration Law, Code of Civil Procedure 1280 et seq., and the Rules of the American Arbitration Association. The arbitrator shall have the final authority to order work performed, to order the payment from one party to another, and to order who shall bear the costs of arbitration. Costs to initiate arbitration shall be paid by the party seeking arbitration. Notwithstanding, the party prevailing in any arbitration proceeding shall be entitled to recover from the other all attorney's fees and costs of arbitration.

City of Tulare Housing Rehabilitation Program Guidelines 29 ATTACHMENT A
24 CFR Part 5 ANNUAL INCOME INCLUSIONS AND EXCLUSIONS
24 CFR Part 5 Annual Income Inclusions
§5.609 Annual income.
(a) Annual income means all amounts, monetary or not, which:
(1) Go to, or on behalf of, the family head or spouse (even if temporarily absent) or to any other family member; or
(2) Are anticipated to be received from a source outside the family during the 12-month period following admission or annual reexamination effective date; and
(3) Which are not specifically excluded in paragraph (c) of this section. (4) Annual income also means amounts derived (during the 12-month period) from assets to which any member of the family has access.
(b) Annual income includes, but is not limited to:
(1) The full amount, before any payroll deductions, of wages and salaries, overtime pay, commissions, fees, tips and bonuses, and other compensation for personal services; (2) The net income from the operation of a business or profession. Expenditures for business expansion or amortization of capital indebtedness shall not be used as deductions in determining net income. An allowance for depreciation of assets used in a business or profession may be deducted, based on straight line depreciation, as provided in Internal Revenue Service regulations. Any withdrawal of cash or assets from the operation of a business or profession will be included in income, except to the extent the withdrawal is reimbursement of cash or assets invested in the operation by the family; (3) Interest, dividends, and other net income of any kind from real or personal property. Expenditures for amortization of capital indebtedness shall not be used as deductions in determining net income. An allowance for depreciation is permitted only as authorized in paragraph (b)(2) of this section. Any withdrawal of cash or assets from an investment will be included in income, except to the extent the withdrawal is reimbursement of cash or assets invested by the family. Where the family has net family assets in excess of $5,000, annual income shall include the greater of the actual income derived from all net family assets or a percentage of the value of such assets based on the current passbook savings rate, as determined by HUD;
(4) The full amount of periodic amounts received from Social Security, annuities, insurance policies, retirement funds, pensions, disability or death benefits, and other similar types of periodic receipts, including a lump-sum amount or prospective monthly amounts for the delayed start of a periodic amount (except as provided in paragraph (c)(14) of this section); (5) Payments in lieu of earnings, such as unemployment and disability compensation, worker's compensation and severance pay (except as provided in paragraph (c)(3) of this section); (6) Welfare assistance payments.

City of Tulare Housing Rehabilitation Program Guidelines 30 (i) Welfare assistance payments made under the Temporary Assistance for Needy Families (TANF) program are included in annual income only to the extent such payments:
(A) Qualify as assistance under the TANF program definition at 45 CFR 260.31; and (B) Are not otherwise excluded under paragraph (c) of this section. (ii) If the welfare assistance payment includes an amount specifically designated for shelter and utilities that is subject to adjustment by the welfare assistance agency in accordance with the actual cost of shelter and utilities, the amount of welfare assistance income to be included as income shall consist of:
(A) The amount of the allowance or grant exclusive of the amount specifically designated for shelter or utilities; plus
(B) The maximum amount that the welfare assistance agency could in fact allow the family for shelter and utilities. If the family's welfare assistance is ratably reduced from the standard of need by applying a percentage, the amount calculated under this paragraph shall be the amount resulting from one application of the percentage. (7) Periodic and determinable allowances, such as alimony and child support payments, and regular contributions or gifts received from organizations or from persons not residing in the dwelling; (8) All regular pay, special pay and allowances of a member of the Armed Forces (except as provided in paragraph (c)(7) of this section).
(9) For section 8 programs only and as provided in 24 CFR 5.612, any financial assistance, in excess of amounts received for tuition and any other required fees and charges, that an individual receives under the Higher Education Act of 1965 (20 U.S.C. 1001 et seq.), from private sources, or from an institution of higher education (as defined under the Higher Education Act of 1965 (20 U.S.C. 1002)), shall be considered income to that individual, except that financial assistance described in this paragraph is not considered annual income for persons over the age of 23 with dependent children. For purposes of this paragraph, “financial assistance” does not include loan proceeds for the purpose of determining income. 24 CFR Part 5 Annual Income Exclusions
(c) Annual income does not include the following:
(1) Income from employment of children (including foster children) under the age of 18 years; (2) Payments received for the care of foster children or foster adults (usually persons with disabilities, unrelated to the tenant family, who are unable to live alone); (3) Lump-sum additions to family assets, such as inheritances, insurance payments (including payments under health and accident insurance and worker's compensation), capital gains and settlement for personal or property losses (except as provided in paragraph (b)(5) of this section); (4) Amounts received by the family that are specifically for, or in reimbursement of, the cost of medical expenses for any family member;
(5) Income of a live-in aide, as defined in §5.403;
City of Tulare Housing Rehabilitation Program Guidelines 31 (6) Subject to paragraph (b)(9) of this section, the full amount of student financial assistance paid directly to the student or to the educational institution;
(7) The special pay to a family member serving in the Armed Forces who is exposed to hostile fire; (8) (i) Amounts received under training programs funded by HUD; (ii) Amounts received by a person with a disability that are disregarded for a limited time for purposes of Supplemental Security Income eligibility and benefits because they are set aside for use under a Plan to Attain Self-Sufficiency (PASS);
(iii) Amounts received by a participant in other publicly assisted programs which are specifically for or in reimbursement of out-of-pocket expenses incurred (special equipment, clothing, transportation, child care, etc.) and which are made solely to allow participation in a specific program;
(iv) Amounts received under a resident service stipend. A resident service stipend is a modest amount (not to exceed $200 per month) received by a resident for performing a service for the PHA or owner, on a part-time basis, that enhances the quality of life in the development. Such services may include, but are not limited to, fire patrol, hall monitoring, lawn maintenance, resident initiatives coordination, and serving as a member of the PHA's governing board. No resident may receive more than one such stipend during the same period of time; (v) Incremental earnings and benefits resulting to any family member from participation in qualifying State or local employment training programs (including training programs not affiliated with a local government) and training of a family member as resident management staff. Amounts excluded by this provision must be received under employment training programs with clearly defined goals and objectives, and are excluded only for the period during which the family member participates in the employment training program; (9) Temporary, nonrecurring or sporadic income (including gifts); (10) Reparation payments paid by a foreign government pursuant to claims filed under the laws of that government by persons who were persecuted during the Nazi era; (11) Earnings in excess of $480 for each full-time student 18 years old or older (excluding the head of household and spouse);
(12) Adoption assistance payments in excess of $480 per adopted child; (13) [Reserved]
(14) Deferred periodic amounts from supplemental security income and Social Security benefits that are received in a lump sum amount or in prospective monthly amounts, or any deferred Department of Veterans Affairs disability benefits that are received in a lump sum amount or in prospective monthly amounts.
(15) Amounts received by the family in the form of refunds or rebates under State or local law for property taxes paid on the dwelling unit;
(16) Amounts paid by a State agency to a family with a member who has a developmental disability and is living at home to offset the cost of services and equipment needed to keep the developmentally disabled family member at home; or
City of Tulare Housing Rehabilitation Program Guidelines 32 (17) Amounts specifically excluded by any other Federal statute from consideration as income for purposes of determining eligibility or benefits under a category of assistance programs that includes assistance under any program to which the exclusions set forth in 24 CFR 5.609(c) apply. A notice will be published in the FEDERAL REGISTER and distributed to PHAs and housing owners identifying the benefits that qualify for this exclusion. Updates will be published and distributed when necessary. [See https://www.federalregister.gov/documents/2014/05/20/2014-11688/federally-mandated-exclusions-fromincome-updated-listing for most recent notice] (d) Annualization of income. If it is not feasible to anticipate a level of income over a 12-month period (e.g., seasonal or cyclic income), or the PHA believes that past income is the best available indicator of expected future income, the PHA may annualize the income anticipated for a shorter period, subject to a redetermination at the end of the shorter period.

City of Tulare Housing Rehabilitation Program Guidelines 33 ATTACHMENT A-1
Title 25 Section 6914 Gross Income Inclusions – For CalHome activities “Gross income” shall mean the anticipated income of a person or family for the twelve-month period following the date of determination of income.
“Income” shall consist of the following:
(a) Except as provided in subdivision (b), “Exclusions”, all payments from all sources received by the family head (even if temporarily absent) and each additional member of the family household who is not a minor shall be included in the annual income of a family. Income shall include, but not be limited to:
(1) The gross amount, before any payroll deductions, of wages and salaries, overtime pay, commissions, fees, tips and bonuses;
(2) The net income from operation of a business or profession or from rental or real or personal property (for this purpose, expenditures for business expansion or amortization of capital indebtedness shall not be deducted to determine the net income from a business);
(3) Interest and dividends;
(4) The full amount of periodic payments received from social security, annuities, insurance policies, retirement funds, pensions, disability or death benefits and other similar types of periodic receipts;
(5) Payments in lieu of earnings, such as unemployment and disability compensation, worker’s compensation and severance pay;
(6) Public Assistance. If the public assistance payment includes any amount specifically designated for shelter and utilities which is subject to adjustment by the public assistance agency in accordance with the actual cost of shelter and utilities, the amount of public assistance income to be included as income shall consist of:
(A) The amount of the allowance or grant exclusive of the amount specifically designated for shelter and utilities, plus
(B) The maximum amount which the public assistance agency could in fact allow for the family for shelter and utilities,
(7) Periodic and determinable allowances such as alimony and child support payments, and regular contributions or gifts from persons not residing in the dwelling; All regular pay, special pay and allowances of a member of the Armed Forces (whether or not living in the dwelling) who is head of the family or spouse.

City of Tulare Housing Rehabilitation Program Guidelines 34 ATTACHMENT B
PART 5 ANNUAL INCOME NET FAMILY ASSET INCLUSIONS AND EXCLUSIONS This table presents the Part 5 asset inclusions and exclusions as stated in the HUD Technical Guide for Determining Income and Allowances for HOME Program (Third Edition; January 2005).

Statements from 24 CFR Part 5 – Last Modified: January 2005 Inclusions

1. Cash held in savings accounts, checking accounts, safe deposit boxes, homes, etc. For savings accounts, use the current balance. For checking accounts, use the average 6-month balance. Assets held in foreign countries are considered assets.

2. Cash value of revocable trusts available to the applicant.

3. Equity in rental property or other capital investments. Equity is the estimated current market value of the asset less the unpaid balance on all loans secured by the asset and all reasonable costs (e.g., broker fees) that would be incurred in selling the asset. Under HOME, equity in the family's primary residence is not considered in the calculation of assets for owner-occupied rehabilitation projects.

4. Cash value of stocks, bonds, Treasury bills, certificates of deposit and money market accounts.

5. Individual retirement, 401(K), and Keogh accounts (even though withdrawal would result in a penalty).

6. Retirement and pension funds.

7. Cash value of life insurance policies available to the individual before death (e.g., surrender value of a whole life or universal life policy).

8. Personal property held as an investment such as gems, jewelry, coin collections, antique cars, etc.

9. Lump sum or one-time receipts, such as inheritances, capital gains, lottery winnings, victim's restitution, insurance settlements and other amounts not intended as periodic payments.

10. Mortgages or deeds of trust held by an applicant.

Exclusions

1. Necessary personal property, except as noted in number 8 of Inclusions, such as clothing, furniture, cars and vehicles specially equipped for persons with disabilities.

2. Interest in Indian trust lands.

3. Assets not effectively owned by the applicant. That is, when assets are held in an individual's name, but the assets and any income they earn accrue to the benefit of someone else who is not a member of the household and that other person is responsible for income taxes incurred on income generated by the asset.

4. Equity in cooperatives in which the family lives.

5. Assets not accessible to and that provide no income for the applicant.

6. Term life insurance policies (i.e., where there is no cash value).

7. Assets that are part of an active business. "Business" does not include rental of properties that are held as an investment and not a main occupation.

City of Tulare Housing Rehabilitation Program Guidelines 35 ATTACHMENT B-1
Title 25 Section 6914 Gross Income Inclusions – For CalHome activities (b) The following items shall not be considered as income:
(1) Casual, sporadic or irregular gift items;
(2) Amounts which are specifically for or in reimbursement of the cost of medical expenses; (3) Lump-sum additions to family assets, such as inheritances, insurance payments (including payments under health and accident insurance and worker’s compensation), capital gains and settlement for personal or property losses; (4) Amounts of educational scholarships paid directly to the student or to the educational institution, and amounts paid by the government to a veteran for use in meeting the costs of tuition, fees, books and equipment. Any amounts of such scholarships, or payments to veterans not used for the above purposes of which are available for a subsistence are to be included in income;
(5) The special pay to a serviceman head of a family away from home and exposed to hostile fire;
(6) Relocation payments made pursuant to federal, state, or local relocation law; (7) Foster child care payments;
(8) The value of coupon allotments for the purchase of food pursuant to the Food Stamp Act of 1964 which is an excess of the amount actually charged the eligible household; (9) Payments received pursuant to participation of the following volunteer programs under the ACTION Agency:
(A) National Volunteer Antipoverty Programs which include VISTA, Service Learning Programs and Special Volunteer Programs.
(B) National Older American Volunteer Program for persons aged 60 and over which include Retired Senior Volunteer Programs, Foster Grandparent Program, older American Community Services Program, and National Volunteer Program to Assist Small Business Experience, Service Corps of Retired Executive (SCORE) and Active Corps of Executives (ACE).

City of Tulare Housing Rehabilitation Program Guidelines 36 ATTACHMENT C

HOME PROGRAM HOMEOWNERSHIP VALUE LIMITS FOR TULARE COUNTY (HOME Value Limits as of 06/01/2025)
TULARE COUNTY One-Family
$379,000 $429,000
[Note from HOME to remove: if you have exception limits approved by HOME, modify this table as needed and indicate from/through date of the exception]

CALHOME MAXIMUM SALES PRICE / VALUE LIMIT
1 as established by comparable sales or information provided by the California Real Estate Association. https://www.car.org/en/marketdata/data/countysalesactivity

HOME MAXIMUM PER-UNIT SUBSIDY LIMITS FOR STATE OF CALIFORNIA (Limits are effective 02/13/2024)
O-BDR 1-BDR 2-BDR 3-BDR 4-BDR
$181,488 $208,049 $252,994 $327,293 $359,263
CALHOME SUBSIDY LIMIT (as of 09/01/2021 NOFA)
Maximum assistance per unit is established by the most current CalHome NOFA. Current limits are $100,000 for housing rehabilitation, and $150,000 for reconstruction projects.

HOME PROGRAM HOUSEHOLD INCOME LIMITS FOR TULARE COUNTY* (Limits are effective 06/01/2025)
Number of Persons in Household
1 2 3 4 5 6 7 8
80% of
AMI
$52,600 $60,100 $67,600 $75,100 $81,150 $87,150 $93,150 $99,150 HCD 2025 INCOME LIMITS FOR CALHOME

ADJUSTED FOR FAMILY SIZE FOR TULARE COUNTY
Income
Level
Household Size
1 2 3 4 5 6 7 8
80% $52,640 $60,160 $67,680 $75,120 $81,200 $87,200 $93,200 $99,200 Sponsor will insert the limits for the county in which the Program is located, and will update the income limits annually as HCD provides new information. The link to the official, HCDmaintained Value, Subsidy, and Income limits is: State and Federal Income, Rent, and Loan/Value Limits | California Department of Housing and Community Development for HOME and CDBG limits, choose “State CDBG, HOME, and NHTF/HHC Article I - Income, Value , Subsidy and Rent Limits”; for CalHome income limits, choose “Official State Income Limits”).

City of Tulare Housing Rehabilitation Program Guidelines 37 SPONSOR STANDARDS FOR BEDROOM AND BATHROOM ADDITIONS TO

ALLEVIATE OVERCROWDING
Maximum No.
of Persons in
the Household
Number of
Bedrooms
Number of
Bathrooms
1 SRO 1
1 0-BR 1
2 1-BR 1
4 2-BR 2
6 3-BR 2
8 4-BR 3
10 5-BR 3
12 6-BR 4
• Opposite sex children under 6 years of age may share a bedroom, up to 2 children per bedroom.
• Opposite-sex children 6 years of age and older may have their own bedroom. • Children shall be permitted a separate bedroom from their parents. • Same-sex children of any age may share a bedroom, up to 2 children per bedroom. • Adults not in a partner relationship may have their own bedroom. • 4 or more people – a second bathroom may be added.
• 8 or more people – a third bathroom may be added.
• Same rules apply to mobile home units.

The chart above is used as a guide to overcrowding.

City of Tulare Housing Rehabilitation Program Guidelines 38 ATTACHMENT D

HOUSING REHABILITATION MARKETING PLAN

SUMMARY
The Sponsor will continue its efforts to market the Housing Rehabilitation Program in a manner that will reach all community members.

All marketing related to the Housing Rehabilitation Program is publicized in both English and Spanish.

All marketing materials include information identifying the Sponsor’s commitment to fair housing laws and affirmative marketing policy, and are widely distributed. Equal opportunity is emphasized in written materials and oral presentations. A record is maintained by the Sponsor identifying what marketing materials are used, and when and where they are distributed.

Forms of marketing may include fliers, brochures, newspaper ads, articles and public service announcements. Fliers and brochures are distributed at local government buildings, other public buildings and through the mail, as well as to businesses that assist those not likely to apply without special outreach. Advertisements and articles are published in newspapers that are widely circulated within the community.

Established working relationships with local lending agencies also aid in informing the public by facilitating the distribution of informational fliers to households seeking financial assistance for repairs that are unable to obtain conventional financing.

Informational meetings are offered to potential participants to explain Program requirements. Often, minimal formal outreach efforts are required as the need for assistance generally exceeds funds available.

However, marketing measures are actively performed in order to maintain a healthy interest list.

Characteristics on all applicants and participants are collected and compared with the Sponsor’s demographics. Should the Sponsor find that there are underserved segments of the population, a plan to better serve them will be developed and implemented.

MARKETING FORMS
Fliers
Brochures
Newspaper Ads and Articles
Public Service Announcements
Public Informational Meetings

MARKETING VENUES
Local Government Buildings
Local Public Services Buildings
Private Businesses
Lending Agencies
Real Estate Offices
Newspaper
Radio
Mail
City of Tulare Housing Rehabilitation Program Guidelines 39 ATTACHMENT E

RESIDENTIAL ANTI-DISPLACEMENT AND TEMPORARY RELOCATION
PLAN
Version 2
The Housing and Community Development Act of 1974, as amended, and the National Affordable Housing Act of 1990, require all grantees of Community Development Block Grant (CDBG) funds or Home Investment Partnership (HOME) funds to follow a written Residential Anti-displacement and Relocation Assistance Plan (Plan) for any activities which could lead to displacement of occupants whose property is receiving funds from these or other federal funding source. Having been developed in response to both aforesaid federal legislations, this Plan is intended to inform the public of the compliance of the CITY OF TULARE (Sponsor) with the requirements of federal regulations 24 CFR section 570.606 under state recipient requirements, Section 104(d) of the Housing and Community Development Act of 1974, and 24 CFR section 92.353 and other parts of the HOME federal regulations. The Plan will outline reasonable steps, which the Sponsor will take to minimize displacement and ensure compliance with all applicable federal and state relocation requirements. The Sponsor’s governing body has adopted this plan via a formal resolution.

This Plan will affect rehabilitation activities funded by the U.S. Department of Housing and Urban Development (HUD) under the following program titles: HOME, CDBG, Urban Development Action Grant (UDAG), Special Purpose Grants, Section 108 Loan Guarantee Program, and such other grants as HUD may designate as applicable, which take place with in the Sponsor’s jurisdiction limits.

The Sponsor will provide permanent relocation benefits to all eligible “displaced” households either owner-occupied or renter-occupied units which are permanently displaced by the housing rehabilitation program (See Section E below.). In addition, the Sponsor will replace all eligible occupied and vacant occupiable low-income group dwelling units demolished or converted to a use other than low income group housing as a direct result of rehabilitation activities. This applies to all units assisted with funds provided under the Housing and Community Development Act of 1974, as amended, and as described in the Federal Regulations 24 CFR section 570.496(a), Relocation, Displacement and Acquisition:

Final Rule dated July 18, 1990 (Section 104(d)) and 49 CFR Part 24, Uniform Relocation Assistance (URA) and Real Property Acquisition Regulations Final Rule and Notice (URA) dated March 2, 1989.

All Sponsor programs/projects will be implemented in ways consistent with the Sponsor’s commitment to Fair Housing. Participants will not be discriminated against on the basis of race, color, religion, age, ancestry, national origin, sex, familial status, or handicap. The Sponsor will provide equal relocation assistance available 1) to each targeted income group household displaced by the demolition or rehabilitation of housing or by the conversion of a targeted income group dwelling to another use as a direct result of assisted activities; and 2) to each separate class of targeted income group persons temporarily relocated as a direct result of activities funded by HUD programs.

City of Tulare Housing Rehabilitation Program Guidelines 40 A. Minimizing Permanent Displacement and Temporary Relocation Resulting from Housing Rehabilitation or Reconstruction Activities
Consistent with the goals and objectives of activities assisted under the Act, the Sponsor will take the following steps to minimize the displacement of persons from their homes during housing rehabilitation or reconstruction funded by HUD programs:

1. Provide proper notices with counseling and referral services to all tenants so that they understand their relocation rights and receive the proper benefits. When necessary assist permanently displaced persons to find alternate housing in the neighborhood.

2. Stage rehabilitation of assisted households to allow owner-occupants and/or tenants to remain during minor rehabilitation.

3. Encourage owner investors to temporarily relocate tenants to other available safe and sanitary vacant units on the project site area during the course of rehabilitation or pay expenses on behalf of replaced tenants.

4. Work with area landlords, real estate brokers, and/or hotel/motel managements to locate vacancies for households facing temporary relocation.

5. When necessary, use public funds, such as CDBG funds, to pay moving costs and provide relocation/displacement payments to households permanently displaced by assisted activities.

B. Lead Based Paint Mitigation Which Causes Temporary Relocation:

On September 15, 2000, the Final Rule for Lead Based Paint Hazard Control went into effect. Among other things, it requires that federally-funded rehabilitation must use safe work practices so that occupants and workers can be protected from lead hazards. At no time should the tenant-occupant(s) be present in work areas or designated adjacent areas while LHC activities are taking place in any dwelling unit interior, common area, or exterior. As such, occupants may not be allowed to remain in their units during the time that lead-based paint hazards are being created or treated. Once work that causes lead hazards has been completed, and the unit passes clearance, the occupants can return.

The tenant-occupants may not reoccupy a work area or adjacent area until postlead hazard reduction clearance standards have been achieved and verified with laboratory results. The final rule allows for certain exceptions: programs:

1. The work will not disturb lead-based paint, or create dust-lead or soil-lead hazard; or

2. The work is on exterior only and openings are sealed to prevent dust from entering the home, the work area is cleaned after the work is completed, and the residents have alternative lead free entry; or

3. The interior work will be completed in one period of less than 8-daytime hours and the work site is contained to prevent the release of dust into other areas of the home; or

4. The interior work will be completed within five (5) calendar days, the work site is City of Tulare Housing Rehabilitation Program Guidelines 41 contained to prevent the release of dust, the worksite and areas within 10 feet of the worksite are cleaned at the end of each day to remove any visible dust and debris, and the residents have safe access to kitchen and bath and bedrooms.

If temporary relocation benefits are not provided because the Sponsor believes that the project meets one of the above criteria, then proper documentation must be provided in the rehabilitation project file to show compliance. It is up to the Sponsor to ensure that the owner-occupant or tenant in the project does not get impacted by lead paint mitigation efforts. In most cases where lead paint mitigation is taking place, occupants (tenants or owners) will be strongly encouraged to relocate even for just a few days until a final lead clearance can be issued by a certified lead based paint assessor. Occupants who are temporarily relocated because of lead based paint mitigation are entitled to the same relocation benefits as those who are relocated because of substantial rehabilitation or reconstruction activities.

C. Temporary Relocation of Owner-Occupants:

Owner-occupants are not allowed to stay in units which are hazardous environments during lead based paint mitigation. When their home is having lead based paint mitigation work done which will not make it safe to live in, then they are eligible for temporary relocation benefits up to $5,000, which will be provided as a grant. In the same way, in a unit requiring substantial rehabilitation (with or without lead-based paint mitigation) which will not allow the family to access a bath or kitchen facility, or if the unit is being demolished and reconstructed, the family will be eligible for temporary relocation benefits up to $5,000, which will be provided as a grant. In no case shall the grant for temporary relocation exceed $5,000..

Owner-occupants will be encouraged to move in with family or friends during the course of rehabilitation, since they are voluntarily participating in the Program. The housing rehabilitation loan specialist and/or the rehabilitation construction specialist will complete a temporary relocation benefits form (See Appendix C) to document that the owner-occupant understands that they must relocate during the course of construction and what benefits they wish to be reimbursed for as part of their relocation.

D. Temporary Relocation of Residential Tenants:

If continued occupancy during rehabilitation is judged to constitute a substantial danger to health and safety of the tenant or the public, or is otherwise undesirable because of the nature of the project, the tenant may be required to relocate temporarily. The contract administrator or rehabilitation specialist will make determination of the need for temporary relocation. The temporary relocation period will not exceed 180 days. All conditions of temporary relocation will be reasonable. Any tenant required to relocate temporarily will be helped to find another place to live which is safe, sanitary and of comparable value and they have the first right to move back into the original unit being rehabilitated at the same rent or lower. He or she may move in with family and friends and still receive full or partial temporary assistance based on eligible cost incurred. The housing rehabilitation loan specialist and/or the rehabilitation specialist will ensure that each tenant-occupied unit under the Program will receive a General Information Notice (GIN) (as soon as possible after a loan application is received) and the tenant will receive a Notice of Non-displacement (after loan approval), and each tenant-occupied unit will City of Tulare Housing Rehabilitation Program Guidelines 42 have a temporary relocation benefits form completed for them. (See Appendix C).

These notices will document that each tenant understands what their relocation rights are, and if they must relocate during the course of construction, that they receive the proper counseling and temporary relocation benefits.

A tenant receiving temporary relocation shall receive the following:

1. Increased housing costs (e.g. rent increase, security deposits) and

2. Payment for moving and related expenses, as follows:
a. Transportation of the displaced persons and personal property within 50 miles, unless the grantee determines that farther relocation is justified; b. Packing, crating, unpacking, and uncrating of personal property; c. Storage of personal property, not to exceed 12 months, unless the grantee determines that a longer period is necessary;
d. Disconnection, dismantling, removing, reassembling, and reinstalling relocated household appliances and other personal property;
e. Insurance for the replacement value of personal property in connection with the move and necessary storage;
f. The replacement value of property lost, stolen or damaged in the process of moving (not through the fault of the displaced person, his or her agent, or employee) where insurance covering such loss, theft or damage is not reasonably available;
g. Reasonable and necessary costs of security deposits required to rent the replacement dwelling;
h. Any costs of credit checks required to rent the replacement dwelling; i. Other moving related expenses as the grantee determines to be reasonable and necessary, except the following ineligible expenses:
1) Interest on a loan to cover moving expenses; or
2) Personal injury; or
3) Any legal fee or other cost for preparing a claim for a relocation payment or for representing the claimant before the Grantee; or 4) Costs for storage of personal property on real property already owned or leased by the displaced person before the initiation of negotiations.

E. Rehabilitation Activities Requiring Permanent Displacement The Sponsor’s rehabilitation program will not typically trigger permanent displacement and permanent displacement activities fall outside of the scope of this plan. If a case of permanent displacement is encountered, then the staff responsible for the rehabilitation City of Tulare Housing Rehabilitation Program Guidelines 43 program will consult with Sponsor’s legal counsel to decide if they have the capacity to conduct the permanent displacement activity. If local staff does not have the capacity, then a professional relocation consultant will be hired to do the counseling and benefit determination and implementation. If local staff does wish to do the permanent displacement activity then they will consult and follow the HUD Relocation Handbook 1378.

F. Rehabilitation Which Triggers Replacement Housing
If the Sponsor’s rehabilitation program assists a property where one or more units are eliminated then under Section 104 (d) of the Housing and Community Act of 1974, as amended applies and the Sponsor is required to replace those lost units. An example of this would be a duplex unit which is converted into a single family unit. In all cases where rehabilitation activities will reduce the number of housing units in the jurisdiction, then the Sponsor must document that any lost units are replaced and any occupants of reduced units are given permanent relocation benefits. (This does not apply to reconstruction or replacement housing done under a rehabilitation program where the existing unit(s) is demolished and replaced with a structure equal in size without in loss number of units or bedrooms.)
Replacement housing will be provided within three years after the commencement of the demolition or conversion. Before entering into a contract committing the Sponsor to provide funds for an activity that will directly result in such demolition or conversion, the Sponsor will make this activity public (through a noticed public hearing and/or publication in a newspaper of general circulation) and submit to the California Department of Housing and Community Development or the appropriate federal authority the following information in writing:

1. A description of the proposed assisted activity;

2. The location on a map and the approximate number of dwelling units by size (number of bedrooms) that will be demolished or converted to a use other than as targeted income group dwelling units as a direct result of the assisted activity;

3. A time schedule for the commencement and completion of the demolition or conversion;

4. The location on a map and the approximate number of dwelling units by size (number of bedrooms) that will be provided as replacement dwelling units;

5. The source of funding and a time schedule for the provision of the replacement dwelling units;

6. The basis for concluding that each replacement dwelling unit will remain a targeted income group dwelling unit for at least 10 years from the date of initial occupancy; and,

7. Information demonstrating that any proposed replacement of dwelling units with smaller dwelling units (e.g., a two-bedroom unit with two one-bedroom units) is City of Tulare Housing Rehabilitation Program Guidelines 44 consistent with the housing needs of targeted income group households in the jurisdiction.

The Program Operator for the Sponsor is responsible for tracking the replacement of housing and ensuring that it is provided within the required period. The Sponsor is responsible for ensuring requirements are met for notification and provision of relocation assistance, as described in Section 570.606, to any targeted income group displaced by the demolition of any dwelling unit or the conversion of a targeted income group dwelling unit to another use in connection with an assisted activity.

G. Record Keeping and Relocation Disclosures/Notifications The Sponsor will maintain records of occupants of federally-funded rehabilitated, reconstructed or demolished property from the start to completion of the project to demonstrate compliance with section 104(d), URA and applicable program regulations.

Each rehabilitation project, which dictates temporary or permanent or replacement activities, will have a project description and documentation of assistance provided. (See sample forms in HUD Relocation Handbook 1378, Chapter 1, Appendix 11, form HUD40054) Appropriate advisory services will include reasonable advance written notice of (a) the date and approximate duration of the temporary relocation; (b) the address of the suitable, decent, safe, and sanitary dwelling to be made available for the temporary period; (c) the terms and conditions under which the tenant may lease and occupy a suitable, decent, safe, and sanitary dwelling.

Notices shall be written in plain, understandable primary language of the persons involved.

Persons who are unable to read and understand the notice (e.g. illiterate, foreign language, or impaired vision or other disability) will be provided with appropriate translation/communication. Each notice will indicate the name and telephone number of a person who may be contacted for answers to questions or other needed help. The notices and process below is for only temporary relocation. If permanent relocation is involved then other sets of notice and noticing process and relocation benefits must be applied (See HUD relocation handbook 1378 for those forms and procedures) The Temporary Relocation Advisory Notices to be provided are as follows:

1. General Information Notice: As soon as feasible when an owner investor is applying for Federal financing for rehabilitation, reconstruction, or demolition, the tenant of a housing unit will be mailed or hand delivered a General Information Notice that the project has been proposed and that the tenant will be able to occupy his or her present house upon completion of rehabilitation. The tenant will be informed that the rent after rehabilitation will not exceed current rent or 30 percent of his or her average monthly gross household income. The tenant will be informed that if he or she is required to move temporarily so that the rehabilitation can be completed, suitable housing will be made available and he or she will be reimbursed for all reasonable extra expenses. The tenant will be cautioned that he or she will not be provided relocation assistance if he or she decides to move for personal reasons. See Appendix A for sample notice to be delivered personally or by certified mail.

City of Tulare Housing Rehabilitation Program Guidelines 45 2. Notice of Non Displacement: As soon as feasible when the rehabilitation application has been approved, the tenant will be informed that they will not be permanently displaced and that they are eligible for temporary relocation benefits because of lead based paint mitigation or substantial rehabilitation, or reconstruction of their unit.

The tenant will also again be cautioned not to move for personal reasons during rehabilitation, or risk losing relocation assistance. See Appendix B for sample notice to be delivered personally or by certified mail.

3. Disclosure to Occupants of Temporary Relocation Benefits: This form is completed to document that the Sponsor is following it’s adopted temporary relocation plan for owner- occupants and tenants. See Appendix C for a copy of the disclosure form.

4. Other Relocation/Displacement Notices: The above three notices are required for temporary relocation. If the Sponsor is attempting to provide permanent displacement benefits then there are a number of other forms which are required.

Staff will consult HUD’s Relocation Handbook 1378 and ensure that all the proper notices are provided for persons who are permanently displaced as a result of housing rehabilitation activities funded by CDBG or other federal programs.

City of Tulare Housing Rehabilitation Program Guidelines 46 APPENDIX A
Dear ,
On (date) , (property owner) submitted an application to the for financial assistance to rehabilitate the building which you occupy at (address) .

This notice is to inform you that, if the assistance is provided and the building is rehabilitated, you will not be displaced. Therefore, we urge you not to move anywhere at this time. (If you do elect to move for reasons of your choice, you will not be provided relocation assistance.)
If the application is approved and Federal assistance is provided for the rehabilitation, you will be able to lease and occupy your present apartment (or another suitable, decent, safe and sanitary apartment in the same building) upon completion of the rehabilitation. Of course, you must comply with standard lease terms and conditions.

After the rehabilitation, your initial rent, including the estimated average monthly utility costs, will not exceed the greater of (a) your current rent/average utility costs, or (b) 30 percent of your gross household income. If you must move temporarily so that the rehabilitation can be completed, suitable housing will be made available to you for the temporary period, and you will be reimbursed for all reasonable extra expenses, including all moving costs and any increase in housing costs.

Again, we urge you not to move. If the project is approved, you can be sure that we will make every effort to accommodate your needs. Because Federal assistance would be involved, you would be protected by the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended.

This letter is important and should be retained. You will be contacted soon. In the meantime, if you have any questions about our plans, please contact (name) , (title) , at (telephone number),
(address) .

Sincerely,
(name)
(title)
City of Tulare Housing Rehabilitation Program Guidelines 47 APPENDIX B
(date)
Dear :

On (date) , we notified you that the owner of your building had applied for assistance to make extensive repairs to the building. On (date) , the owner's request was approved, and the repairs will begin soon.

This is a notice of non-displacement. You will not be required to move permanently as a result of the rehabilitation. This notice guarantees you the following:

1. You will be able to lease and occupy your present apartment [or another suitable, decent, safe and sanitary apartment in the same building/complex] upon completion of the rehabilitation. Your monthly rent will remain until after construction is completed. If increased after construction is done, your new rent and estimated average utility costs will not exceed local fair market rents for your community. Of course, you must comply with all the other reasonable terms and conditions of your lease.

2. If you must move temporarily so that the repairs can be completed, you will be reimbursed for all of your extra expenses, including the cost of moving to and from the temporarily occupied unit and any additional housing costs. The temporary unit will be decent, safe and sanitary, and all other conditions of the temporary move will be reasonable.

Since you will have the opportunity to occupy a newly rehabilitated apartment, I urge you not to move. (If you do elect to move for your own reasons, you will not receive any relocation assistance.) We will make every effort to accommodate your needs. Because Federal assistance is involved, you are protected by the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended.

If you have any questions, please contact (name) , (title), at (phone #) , (address) . Remember; do not move before we have a chance to discuss your eligibility for assistance.

This letter is important to you and should be retained.

Sincerely,
(name and title)
City of Tulare Housing Rehabilitation Program Guidelines 48 APPENDIX C

DISCLOSURE TO OCCUPANT OF TEMPORARY RELOCATION BENEFITS Top to be completed at time of loan application submittal or Home Visit Property Address:
__ Rental Unit __Owner-Occupied Unit
The rehabilitation loan specialist working on behalf of the City/County of has explained the temporary relocation services and benefits available under the current rehabilitation program relocation plan.

I/we have been advised that the City/County of rehabilitation construction specialist will inform me if I need to be temporarily relocated and will to assist me with scheduling any necessary moves and answer any questions about assistance as needed.

Acknowledged:

Occupant Signature Date Occupant Signature Date
Complete this at time of acceptance of Work Write Up with initials by occupant The rehabilitation construction specialist for the City/County of has explained the Rehabilitation Scope of Work for our house and I/we agree that it will:
____ Not require I/we to be relocated. (If initialed then STOP here and sign bottom.) ____ Yes, I/we need to be temporarily relocated. (Complete rest of form if initialed.) Start date and duration of relocation:
____ Starting on or about we will move for all or part of the rehabilitation project.

Approximate length of temporary relocation: Number of days.

For temporary relocation, I/We elect to (check all that apply):
____ Relocate with friends and family.
____ Relocate into a suitable temporary housing unit identified by rehab specialist. ____ Relocate furnishings only into a temporary storage unit. ____ I/We have been told what our relocation benefits are and elect Not to be reimbursed for any eligible relocation expenses.
____ I/We have been told what our relocation benefits are and want to be reimbursed for:

By signing, occupant(s) acknowledge receipt of copy of this form:

Occupant Signature Date Occupant Signature Date
City of Tulare Housing Rehabilitation Program Guidelines 49 ATTACHMENT F

LOAN SERVICING POLICIES AND PROCEDURES

FOR THE CITY OF TULARE
The City of Tulare, hereafter called “Sponsor,” has adopted these policies and procedures in order to preserve its financial interest in properties, whose “Borrowers” have been assisted with public funds. The Sponsor will to the greatest extent possible follow these policies and procedures, but each loan will be evaluated and handled on a case-by-case basis. The Sponsor has formulated this document to comply with state and federal regulations regarding the use of these public funds and any property restrictions, which are associated with them.

The policies and procedures are broken down into the follow areas: 1) making required monthly payments or voluntary payments on a loan’s principal and interest; 2) required payment of property taxes and insurance; 3) required Request for Notice of Default on all second mortgages; 4) loans with annual occupancy restrictions and certifications 5) required noticing and limitations on any changes in title or use of property; 6) required noticing and process for requesting a subordination during a refinance; 7) processing of foreclosure in case of default on the loan.

1. Loan Repayments:

The Sponsor will collect monthly payments from those borrowers who are obligated to do so under Notes which are amortized promissory notes. Late fees will be charged for payments received after the assigned monthly date.

For Notes which are deferred payment loans, the Sponsor must accept voluntary payments on the loan. Loan payments will be credited to principal. The Borrower may repay the loan balance at any time with no penalty.

2. Payment of Property Taxes and Insurance:

As part of keeping the loan from going into default, Borrower must maintain property insurance coverage naming the Sponsor as loss payee. Except for HOME-funded loans, if Borrower fails to maintain the necessary insurance, the Sponsor may take out force placed insurance to cover the property while the Borrower puts a new insurance policy in place. All costs for installing the necessary insurance will be added to the loan balance at time of installation of Borrower’s new insurance.

When a property is located in a 100-year floodplain, the Borrower will be required to carry the necessary flood insurance. A certificate of insurance for flood and for standard property insurance naming the Sponsor as a lender loss payee will be required at close of escrow. The Sponsor will verify the insurance on an annual basis.

Property taxes must be kept current during the term of the loan. If the Borrower fails to maintain payment of property taxes then the Sponsor may pay the taxes current and add the City of Tulare Housing Rehabilitation Program Guidelines 50 balance of the tax payment plus any penalties to the balance of the loan (not permissible when funded with HOME). Wherever possible, the Sponsor encourages Borrower to have impound accounts set up with their first mortgagee wherein they pay their taxes and insurance as part of their monthly mortgage payment.

3. Required Request for Notice of Default:

When the Borrower’s loan is in second position behind an existing first mortgage, it is the Sponsor's policy to prepare and record a "Request for Notice of Default" for each senior lien in front of Sponsor’s loan. This document requires any senior lienholder listed in the notice to notify the Sponsor of initiation of a foreclosure action. The Sponsor will then have time to contact the Borrower and assist them in bringing the first loan current. The Sponsor can also monitor the foreclosure process and go through the necessary analysis to determine if the loan can be made whole or preserved. When the Sponsor is in a third position and receives notification of foreclosure from only one senior lienholder, it is in their best interest to contact any other senior lienholders regarding the status of their loans.

4. Annual Occupancy Restrictions and Certifications:

On owner-occupant loans the Sponsor may require that Borrowers submit utility bills and/or other documentation annually to prove occupancy during the term of the loan. For CDBG, some loans may have income and housing cost evaluations, which require a household to document that they are not able to make repayments, typically every five years. These loan terms are incorporated in the original note and deed of trust. On HOME-funded loans, annual occupancy verification will occur January 1st and 15th of each year for the term of the loan.

5. Required Noticing and Restrictions on Any Changes of Title or Occupancy:

In all cases where there is a change in title or occupancy or use, the Borrower must notify the Sponsor in writing of any change. Sponsor and Borrower will work together to ensure the property is kept in compliance with the original Program terms and conditions such that it remains available as an affordable home for low income families. These types of changes are typical when Borrowers do estate planning (adding a relative to title) or if a Borrower dies and property is transferred to heirs or when the property is sold or transferred as part of a business transaction. In some cases the Borrower may move and turn the property into a rental unit without notifying the Sponsor. Changes in title or occupancy must be in keeping with the objective of benefit to low-income households (below 80 percent of AMI).

Change from owner-occupant to owner-occupant occurs at a sale. When a new owneroccupant is not low-income, the loan is not assumable and the loan balance is immediately due and payable. If the new owner-occupant qualifies as low-income, the purchaser may either pay the loan in full or assume all loan repayment obligations of the original owneroccupant, subject to the approval of the Sponsor’s Loan Committee (depends on the HCD program).

City of Tulare Housing Rehabilitation Program Guidelines 51 If a transfer of the property occurs through inheritance, the heir (as owner-occupant) may be provided the opportunity to assume the loan at an interest rate based on household size and household income, provided the heir is income eligible. If the heir intends to occupy the property and is not low-income, the balance of the loan is due and payable. If the heir intends to act as an owner-investor, the balance of the loan may be converted to an owner/investor interest rate and loan term and a rent limitation agreement is signed and recorded on title. All such changes are subject to the review and approval of the Sponsor’s Loan Committee.

Change from owner-occupant to owner-investor occurs when an owner-occupant decides to move out and rent the assisted property, or if the property is sold to an investor. If the owner converts any assisted unit from owner-occupied to rental, the loan is due in full.

Conversion to use other than residential use is not allowable where the full use of the property is changed from residential to commercial or other. In some cases, Borrowers may request that the Sponsor allow for a partial conversion where some of the residence is used for a business but the household still resides in the property. Partial conversions can be allowed if it is reviewed and approved by any and all agencies required by local statute. If the use of the property is converted to a fully non-residential use, the loan balance is due and payable.

6. Requests for Subordinations:

When a Borrower wishes to refinance the property, they must request a subordination request to the Sponsor. The Sponsor will subordinate their loan only when there is no “cash out” as part of the refinance. Cash out means there are no additional charges on the transaction above loan and escrow closing fees. There can be no third-party debt payoffs or additional encumbrance on the property above traditional refinance transaction costs. Furthermore, the refinance should lower the housing cost of the household with a lower interest rate and the total indebtedness on the property should not exceed the current market value.

Upon receiving the proper documentation from the refinance lender, the request will be considered by the loan committee for review and approval. Upon approval, the escrow company will provide the proper subordination document for execution and recordation by the Sponsor.

7. Process for Loan Foreclosure:

Upon any condition of loan default: 1) non-payment; 2) lack of insurance or property tax payment; 3) change in title or use without approval; or 4) default on senior loans, the Sponsor will send out a letter to the Borrower notifying them of the default situation. If the default situation continues, the Sponsor may start a formal process of foreclosure.

When a senior lienholder starts a foreclosure process and the Sponsor is notified via a Request for Notice of Default, the Sponsor, who is the junior lienholder, may cancel the foreclosure proceedings by "reinstating" the senior lienholder. The reinstatement amount or City of Tulare Housing Rehabilitation Program Guidelines 52 payoff amount must be obtained by contacting the senior lienholder. This amount will include all delinquent payments, late charges and fees to date. Sponsor must confer with Borrower to determine if, upon paying the senior lienholder current, the Borrower can provide future payments. If this is the case, then the Sponsor may cure the foreclosure and add the costs to the balance of the loan with a Notice of Additional Advance on the existing note. HOME funds may not be used for this purpose, however.

If the Sponsor determines, based on information on the reinstatement amount and status of Borrower, that bringing the loan current will not preserve the loan, then staff must determine if it is cost effective to protect their position by paying off the senior lienholder in total and restructure the debt such that the unit is made affordable to the Borrower. If the Sponsor does not have sufficient funds to pay the senior lienholder in full, then they may choose to cure the senior lienholder and foreclose on the property themselves. As long as there is sufficient value in the property, the Sponsor can afford to pay for the foreclosure process and pay off the senior lienholder and retain some or all of their investment.

If the Sponsor decides to reinstate, the senior lienholder will accept the amount to reinstate the loan up until five (5) days prior to the set "foreclosure sale date." This "foreclosure sale date" usually occurs about four (4) to six (6) months from the date of recording of the "Notice of Default." If the Sponsor fails to reinstate the senior lienholder before five (5) days prior to the foreclosure sale date, the senior lienholder would then require a full pay off of the balance, plus costs, to cancel foreclosure. If the Sponsor determines the reinstatement and maintenance of the property not to be cost effective and allows the senior lienholder to complete foreclosure, the Sponsor's lien may be eliminated due to insufficient sales proceeds.

Sponsor as Senior Lienholder
When the Sponsor is first position as a senior lienholder, active collection efforts will begin on any loan that is 31 or more days in arrears. Attempts will be made to assist the homeowner in bringing and keeping the loan current. These attempts will be conveyed in an increasingly urgent manner until loan payments have reached 90 days in arrears, at which time the Sponsor may consider foreclosure. Sponsor’s staff will consider the following factors before initiating foreclosure:
1) Can the loan be cured and can the rates and terms be adjusted to allow for affordable payments such that foreclosure is not necessary?
2) Can the Borrower refinance with a private lender and pay off the Sponsor? 3) Can the Borrower sell the property and pay off the Sponsor? 4) Does the balance warrant foreclosure? (If the balance is under $5,000, the expense to foreclose may not be worth pursuing.)
5) Will the sales price of home "as is" cover the principal balance owing, necessary advances, (maintain hazard insurance, maintain or bring current delinquent property City of Tulare Housing Rehabilitation Program Guidelines 53 taxes, monthly yard maintenance, periodic inspections of property to prevent vandalism, etc.) foreclosure, and marketing costs?
If the balance is substantial and all of the above factors have been considered, the Sponsor may opt to initiate foreclosure. The Borrower must receive, by certified mail, a thirty-day notification of foreclosure initiation. This notification must include the exact amount of funds to be remitted to the Sponsor to prevent foreclosure (such as, funds to bring a delinquent BMIR current or pay off a DPL).

At the end of thirty days, the Sponsor should contact a reputable foreclosure service or local title company to prepare and record foreclosure documents and make all necessary notifications to the owner and junior lienholders. The service will advise the Sponsor of all required documentation to initiate foreclosure (Note and Deed of Trust usually) and funds required from the owner to cancel foreclosure proceedings. The service will keep the Sponsor informed of the progress of the foreclosure proceedings.

When the process is completed, and the property has "reverted to the beneficiary" at the foreclosure sale, the Sponsor could sell the home themselves under a homebuyer program or use it for an affordable rental property managed by a local housing authority or use it for transitional housing facility or other eligible use. The Sponsor could contract with a local real estate broker to list and sell the home and use those funds for Program income-eligible uses.

City of Tulare Housing Rehabilitation Program Guidelines 54 ATTACHMENT G
CITY OF TULARE’S

FORECLOSURE POLICY
Sponsor As Junior Lienholder
It is the City of Tulare’s (Sponsor’s) policy to prepare and record a "Request for Notice" on all junior liens (any lien after the first position) placed on properties financed by a loan.

This document requires any senior lienholder to notify the Sponsor of initiation (recordation of a "Notice of Default") of a foreclosure only. This is to alert the junior lienholder that they are to monitor the foreclosure with the senior lienholder. When the Sponsor is in a third position and receives notification of foreclosure from only one senior lienholder, it would be in their best interest to contact both senior lienholders regarding the status of their loans.

The junior lienholder may cancel the foreclosure proceedings by "reinstating" the senior lienholder. The reinstatement amount must be obtained by contacting the senior lienholder.

This amount will include all delinquent payments, late charges, advances (hazard insurance premiums, property taxes, property protection costs, etc.), and foreclosure costs (fees for legal counsel, recordings, certified mail, etc.)
Once the Sponsor has the information on the reinstatement amount, staff must then determine if it is cost effective to protect their position by reinstating the senior lienholder, keeping them current by submitting a monthly payment thereafter, foreclosing on the property possibly resulting in owning the property at the end of foreclosure, protecting the property against vandalism, and paying marketing costs (readying the home for marketing, paying for yard maintenance, paying a real estate broker a sales commission).

Sponsor As Senior Lienholder
When the Sponsor is in a first position, or the senior lienholder, active collection efforts will begin on any loan that is 31 or more days in arrears. Attempts will be made to assist the homeowner in bringing and keeping the loan current. These attempts will be conveyed in an increasingly urgent manner until loan payments have reached 90 days in arrears, at which City of Tulare Housing Rehabilitation Program Guidelines 55 time the Sponsor may consider foreclosure. Sponsor staff will consider the following factors before initiating foreclosure:
- Can the loan be cured (brought current or paid off) by the owner without foreclosure?
- Can the owner refinance with a commercial lender and pay off the Sponsor? - Can the owner sell the property and pay off the Sponsor? - Does the balance warrant foreclosure? (If the balance is under $5,000, the expense to foreclose may not be worth pursuing.)
- Will the sales price of home "as is" cover the principal balance owing, necessary advances, (maintain hazard insurance, maintain or bring current delinquent property taxes, monthly yard maintenance, periodic inspections of property to prevent vandalism, etc.) foreclosure, and marketing costs? If the balance is substantial and all of the above factors have been considered, the Sponsor may opt to initiate foreclosure. The owner must receive, by certified mail, a thirty-day notification of foreclosure initiation. This notification must include the exact amount of funds to be remitted to the Sponsor to prevent foreclosure (such as, funds to bring a delinquent BMIR current or pay off a DPL).

City of Tulare Housing Rehabilitation Program Guidelines 56 ATTACHMENT H

CERTIFICATION OF OCCUPANCY

CITY OF TULARE
I/we declare as follows:
(Please Print Occupant’s Name(s))
That I/we am/are currently occupying as my/our principal place of residence the real property commonly known as:
(Address)
(City, State, Zip code)
Daytime Phone Number:

Executed on______________________, 20____, at ___________________, CA (Date) (City)
I/we declare under penalty of perjury that the foregoing is true and correct.

Signature(s) of all occupants:

Occupant: _______________________________________________________________ Occupant: _______________________________________________________________ Occupant: _______________________________________________________________ Occupant: _______________________________________________________________ Occupant: ___________________________________________________________ City of Tulare Housing Rehabilitation Program Guidelines 57 ATTACHMENT I

LEAD-BASED PAINT

VISUAL ASSESSMENT, NOTICE OF PRESUMPTION, AND HAZARD REDUCTION FORM Section 1: Background Information
Property Address: No LBP found or LBP exempt 
Select one: Visual Assessment  Presumption  Hazard Reduction  Section 2: Visual Assessment. Fill out Sections 1, 2, and 6. If paint stabilization is performed, also fill out Sections 4 and 5 after the work is completed.

Visual Assessment Date: Report Date:

Check if no deteriorated paint found 
Attachment A: Summary where deteriorated paint was found. For multi-family housing, list at least the housing unit numbers and common areas and building components (including type of room or space, and the material underneath the paint).

Section 3: Notice of Presumption. Fill out Sections 1, 3, 5, and 6. Provide to occupant w/in 15 days of presumption.

Date of Presumption Notice:

Lead-based paint is presumed to be present  and/or Lead-based paint hazards are presumed to be present 
Attachment B: Summary of Presumption: For multi-family housing, list at least the housing unit numbers and common areas, bare soil locations, dust-lead location, and or building components (including type of room or space, and the materials underneath the paint) of lead-based paint and/or hazards presumed to be present.

Section 4: Notice of Lead-Based Paint Hazard Reduction Activity. Fill out Sections 1, 4, 5, and 6.

Provide to occupant w/in 15 days of after work completed.

Date of Hazard Reduction Notice:

Initial Hazard Reduction Notice? Yes  No  Start & Completion Dates:

If “No”, dates of previous Hazard Reduction Activity Notices:

Attachment C: Activity locations and types. For multi-family housing, list at least the housing unit numbers and common areas (for multifamily housing), bare soil locations, dust–lead locations, and/or building components (including type of room or space, and the material underneath the paint), and the types of lead-based paint hazard reduction activities performed at the location listed.

Attachment D: Location of building components with lead-based paint remaining in the rooms, spaces or areas where activities were conducted.

Attachment E: Attach clearance report(s), using DHS form 8552 (and 8551 for abatement activities) Section 5: Resident Receipt of Notice for Presumption or Lead-Based Paint Hazard Reduction Activity and Acknowledgement of Receipt of pamphlet Protection Your Family from Lead in Your Home.

Printed Name: Signature: Date:

Section 6: Contact Information Organization:

Contact Name: Contact Signature:

City of Tulare Housing Rehabilitation Program Guidelines 58 Date: Address: Phone:

HCD Version 12.2024
City of Tulare
HOME Investment Partnerships Program
(HOME)
First-Time Homebuyer
Program Guidelines
Serving the City of Tulare
City of Tulare HOME Program First-Time Homebuyer Program Guidelines Page 2

FIRST-TIME HOMEBUYER PROGRAM GUIDELINES
Table of Contents

1.0. GENERAL

1.1. PROGRAM OUTREACH AND MARKETING

1.2. APPLICATION PROCESS AND SELECTION

1.3. THE HOME PURCHASE PROCESS

1.4. HOMEBUYER COSTS

1.5. HOMEBUYER EDUCATION

1.6. CONFLICT OF INTEREST REQUIREMENTS

1.7. NON-DISCRIMINATION REQUIREMENTS

2.0. APPLICANT QUALIFICATIONS

2.1. CURRENT INCOME LIMITS

2.2. INCOME QUALIFICATION CRITERIA

2.3. DEFINITION OF AN ELIGIBLE HOMEBUYER

3.0. HOUSING UNIT ELIGIBILITY

3.1. LOCATION AND CHARACTERISTICS

3.2. CONDITIONS

3.3 ANTI-DISPLACEMENT POLICY AND RELOCATION ASSISTANCE

3.4. PROPER NOTIFICATION AND DISCLOSURES

4.0. PURCHASE PRICE LIMITS

5.0. THE PRIMARY LOAN
A. QUALIFYING RATIOS
B. INTEREST RATE
C. LOAN TERM
D. IMPOUND ACCOUNT

6.0. THE PROGRAM LOAN
A. MAXIMUM AMOUNT OF PROGRAM ASSISTANCE
B. NON-RECURRING CLOSING COSTS
C. AFFORDABILITY PARAMETERS FOR HOMEBUYERS
D. RATES AND TERMS FOR PROGRAM LOANS
E. LOAN-TO-VALUE RATIO

7.0. PROGRAM LOAN REPAYMENT

7.1. PAYMENTS ARE VOLUNTARY

7.2. RECEIVING LOAN REPAYMENTS

7.3. DUE UPON SALE OR TRANSFER

7.4. LOAN SERVICING POLICIES AND PROCEDURES

7.5. LOAN MONITORING PROCEDURES

8.0. PROGRAM LOAN UNDERWRITING AND APPROVAL

8.1. COMPLETION OF UNDERWRITING AND APPROVAL OF PROGRAM LOAN

8.2. PRIMARY AND PROGRAM LOAN DOCUMENT SIGNING

8.3. ESCROW PROCEDURES

9.0. SUBORDINATE FINANCING

10.0. EXCEPTIONS AND SPECIAL CIRCUMSTANCES

10.1. DEFINITION OF EXCEPTION

10.2. PROCEDURES FOR EXCEPTIONAL CIRCUMSTANCES

11.0. DISPUTE RESOLUTION AND APPEALS PROCEDURE

TABLE OF CONTENTS (CONTINUED)

ATTACHMENTS
City of Tulare HOME Program First-Time Homebuyer Program Guidelines Page 3 ATTACHMENT A: INCOME INCLUSIONS AND EXCLUSIONS
ATTACHMENT B: ASSET INCLUSIONS AND EXCLUSIONS
ATTACHMENT C: MAXIMUM PURCHASE PRICE/AFTER-REHAB VALUE LIMITS; HOME MAXIMUM PER-UNIT SUBSIDY LIMITS; CURRENT INCOME LIMITS
ATTACHMENT D: LOAN SERVICING POLICIES AND PROCEDURES
ATTACHMENT E: SELLER'S LEAD-BASED PAINT DISCLOSURE
ATTACHMENT F: DISCLOSURE TO SELLER WITH VOLUNTARY, ARM'S-LENGTH

PURCHASE OFFER
ATTACHMENT G: INSTRUCTIONS TO HOMEBUYER
ATTACHMENT H: LEAD-BASED PAINT NOTICE OF PRESUMPTION AND HAZARD REDUCTION FORM
ATTACHMENT I: HOMEBUYER PROGRAM LEAD COMPLIANCE DOCUMENT CHECK City of Tulare HOME Program First-Time Homebuyer Program Guidelines Page 4

CITY OF TULARE

HOME PROGRAM FIRST-TIME HOMEBUYER PROGRAM GUIDELINES

1.0. GENERAL
The above-named entity, hereinafter referred to as the “Sponsor” or “Lender,” has entered into a contractual relationship with the California Department of Housing and Community Development (“HCD”) to administer a HOME First-Time Homebuyer program. The homebuyer program described herein (the “Program”) is designed to assist eligible homebuyers in purchasing homes, also referred to herein as “housing units”, located within the Program’s eligible area, as described in Section 3.1.A. The Program provides this assistance in the form of a 30+ year deferred payment “silent” junior priority loan as “Gap” financing toward the purchase price and closing costs of an affordable housing unit that will be occupied by the homebuyers as their primary residence during the HOME Affordability Period. The Program will be administered by Self-Help Enterprises, (the “Program Operator”).

1.1. PROGRAM OUTREACH AND MARKETING
All outreach efforts will be done in accordance with state and federal fair lending regulations to ensure nondiscriminatory treatment, outreach, and access to the Program. No person shall, on the grounds of race, color, ancestry, national origin, citizenship, immigration status, primary language, religion, disability (mental or physical), sex and gender, sexual orientation, gender identity, gender expression, genetic information, marital status, familial status (families with children under 18 or people who are pregnant), source of income, military or veteran status, or age be excluded, denied benefits, or subjected to discrimination under the Program. The Sponsor will ensure that all persons, including those qualified individuals with disabilities, have access to the Program and will take steps to ensure effective communication with and marketing to applicants, residents, and members of the public with disabilities.

A. The Fair Housing Lender and Accessibility logos will be placed on all outreach materials.

Affirmative marketing efforts will be based upon a comparison (census data will be used) of the Program’s eligible area compared to the demographic characteristics of the population served by the Program. This includes tracking separately all applications, including subsets for those which result in denial of assistance or withdrawal, and for those which result in assistance), and an explanation and analysis of any underserved segments of the population. This information is used to show that protected classes (listed above) are not being intentionally or unintentionally excluded from the Program. Flyers or other outreach materials, in English and any other languages that are the primary languages of a significant portion of the area’s residents, in accordance with Sponsor’s Limited English Proficiency (LEP) Plan, or equivalent, will be widely distributed in the Program-eligible area and will be provided to any local social service agencies. The Program may sponsor homebuyer seminars to help educate homebuyers about the homebuying process and future responsibilities.

B. The Program Operator will market the Program to local real estate agents and primary lenders to explain the Program requirements for eligible housing units and homebuyers, and to review Program processes. Local real estate agents and primary lenders will also be invited to have their customers participate in the Program.

City of Tulare HOME Program First-Time Homebuyer Program Guidelines Page 5 C. The following statement will be included in all outreach and marketing materials: Section 504 of the Rehabilitation Act of 1973 prohibits the exclusion of an otherwise qualified individual, solely by reason of disability, from participation under any program receiving Federal funds.

D. The Sponsor will ensure that all Personally Identifiable Information remains confidential and is properly protected.

1.2. APPLICATION PROCESS AND SELECTION
A. Interested households are provided with a Program Brochure, the Instructions to Homebuyer (Attachment G), and a Pre-Application. They are also directed to the Program Operator’s HUD-approved Homebuyer Counseling and Education Program. Once the household completes and submits the Pre-Application, they are placed on a waiting list.

The waitlist is updated regularly to ensure accuracy. Households may be removed from the list under the following circumstances:
• They have successfully completed the program and purchased a home. • They fail to meet eligibility requirements during further review. • They request to be removed from the list.
• They do not respond after three communication attempts (telephone, email, mail) when given a 10-day timeframe to respond for each attempt.

The waitlist is reviewed and updated periodically, and households are contacted to confirm their continued interest and eligibility.

B. Once funds are available and the interested household’s name comes to the top of the waiting list, via phone we will go over the pre-application’s information and either a preliminary eligibility or withdrawal letter will be sent to potential household. The potential homebuyer is advised to interview and compare lenders to start the prequalification process for a primary loan. Potential homebuyers are advised that funds will be available on a first-come, first-served basis upon receipt of a complete application package and pre-qualification letter from the interested household’s primary lender.

C. The Program Operator will provide the submission form/lender cover letter and application, income and assets form, to the potential homebuyer’s primary lender for completion and signatures. In addition to these documents, the primary lender must submit a complete application package and pre-qualification letter to the Program Operator on behalf of the applicant. Complete applications are processed on a first-come, first-served basis. Applications are deemed complete only if all information is completed the application is signed, dated, along with primary lender’s pre-qualification information. Incomplete applications cannot be processed and are not deemed complete.

If the Program Operator encounters material discrepancies and/or misrepresentations, and/or there is income, asset, household composition, or other important questions that cannot be resolved, the Sponsor reserves the right to deny assistance to the household. In this case, the applicant may re-apply after six months, as stated in a written assistance denial letter.

D. Upon eligibility confirmation, the Program Operator will send both the potential homebuyer and primary lender the following documents: pre-qualification letter, condition list, Program Brochure, Attachment (G) Instructions to Homebuyer, Attachment (E) Seller’s Lead-Based Paint Disclosure and the EPA Booklet (Protect Your City of Tulare HOME Program First-Time Homebuyer Program Guidelines Page 6 Family from Lead in Your Home) and (F) Notice to Seller.

E. The potential homebuyer is given 90 days to find a qualified home and secure a primary loan for the housing unit. If during the 90-day timeframe, the potential homebuyer is unable to achieve this, an extension may be given. However, if the potential homebuyer cannot meet the requirements of finding a qualified housing unit and closing a primary loan within the allotted time to participate in the Program, the reservation of funds expires and the next person on the waiting list will be given an opportunity to participate in the Program.

1.3. THE HOME PURCHASE PROCESS
A. The following is a simplified example of how a primary lender would analyze a homebuyer’s finances to determine how much the homebuyer could afford to borrow from the primary lender towards homeownership.

DEBT SERVICE
FOR A FAMILY OF FOUR EARNING $3,388 PER MONTH

HOUSING PAYMENTS TOTAL OVERALL PAYMENTS
Principal & Interest Payment $ 865 $ 1,180 Housing
Insurance 82 +200 Other Debt Service
Taxes 233 $1,380 Total Debt Service
Total Housing Expense $1,180 (Overall debt service per month is 41% of $3,388) (PITI is 35% of $3,388)

OTHER HOUSEHOLD DEBT SERVICE
Car Payment $ 150
Credit Card Payment_ 50
Total Other Debt $ 200
A $865 per month loan payment equates to borrowing $143,000 at 5.88% for a 30-year term.

SUBSIDY CALCULATION
FOR A FAMILY OF FOUR EARNING $3,388 PER MONTH
Purchase Price of Property $ 280,000
Less Primary loan amount 143,000
Less down payment of 1% 2,800

Equals “GAP” $ 134,200
Plus estimated allowable settlement charges 8,400
Equals Total Subsidy $ 142,600
B. The housing unit selection process will be conducted by the homebuyers. Prior to making an offer to purchase an eligible housing unit (see Section 3.0), homebuyer shall provide seller with a disclosure containing the following provisions (see Attachment F for City of Tulare HOME Program First-Time Homebuyer Program Guidelines Page 7 Disclosure to Seller form):
1) Homebuyer has no power of eminent domain and, therefore, will not acquire the property if negotiations fail to result in an amicable agreement. 2) Homebuyer’s offer is an estimate of the fair market value of the housing unit, to be finally determined by a state-licensed appraiser.
3) The housing unit will be subject to inspection. In accordance with 24 CFR section

92.251(c), the housing unit must be decent, safe, sanitary, and in good repair. The standards must provide that the housing meets all applicable State and local housing quality standards and code requirements and the housing does not contain the specific deficiencies established by HUD based on the applicable standards in 24 CFR section 5.703 and published in the Federal Register for HOME assisted projects and units;
4) All housing units built prior to January 1, 1978, will require a lead paint disclosure to be signed by both the homebuyer and Seller (Attachment E); 5) Since the sale is voluntary, seller is not eligible for relocation payments or other relocation assistance;
6) Seller understands that the housing unit must be either: currently owner-occupied, newly constructed, bought by the current tenant, or vacant for three months prior to submission of the purchase offer.
7) If the seller is not provided with a statement of the above six provisions prior to or with the purchase offer, the seller may withdraw from the agreement after this information is provided.

C. Applicant submits an executed Standard Form Purchase and Sale Agreement, along with a primary lender pre-qualification letter to Program Operator. The purchase and sale agreement will be contingent on the household and housing unit meeting Program eligibility requirements and receiving Program loan approval. Program Operator verifies applicant eligibility, housing unit and loan eligibility and amount of assistance to be provided consistent with these guidelines.

D. Program Operator conducts an Environmental Review in accordance with 24 CFR Part 58, and Sponsor’s NEPA Certifying Officer signs the appropriate form before any commitment of funds are made to the homebuyer. An acquisition cannot and must not include rehabilitation immediately after transfer of title, and requires completion of a HUD CENST form from the Environmental Review - HUD Exchange webpage.

E. Program Operator, where Program Operator is not the Sponsor, submits recommendation to the Sponsor for approval or denial, including the reasons for the recommendation.

Sponsor determines Applicant’s approval or denial and instructs Program Operator to notify Applicant. Program Operator provides written notification to Applicant of approval or denial with reason and, if denied, a copy of the Program’s appeal procedures.

See Section 11 of these Program Guidelines.

F. When primary lender requirements are met, Program funds are deposited into escrow, with required closing instructions and loan documents.

G. At the time of escrow closing, the Sponsor shall be named as an additional loss payee on fire, flood (if required), and extended coverage insurance for the length of the loan and in an amount sufficient to cover all encumbrances or full replacement cost of the housing unit. A policy of Title Insurance naming the Sponsor as insured is also required.

City of Tulare HOME Program First-Time Homebuyer Program Guidelines Page 8

1.4. HOMEBUYER COSTS
A. Eligible households must document that they have the funds necessary for down payment and closing costs as required by the primary lender and the Sponsor. The Program’s down payment requirement (below) is in place even if the primary lender has a lower down payment requirement. If the primary lender has a higher down payment requirement, there is no additional down payment requirement required by the Program.

B. Homebuyer must contribute a minimum down payment of one percent (1%) of the purchase price but may contribute more if desired.

C. Sponsor will provide a subsidy that is no greater than the applicable HOME Maximum Per-Unit Subsidy Limit for the State of California. The subsidy will reduce the amount of the primary lender’s loan so that the payments of principal, interest, taxes, insurance, and mortgage insurance and HOA dues, if any, are within approximately 25 to 35% of the household’s gross monthly household income. In addition, the borrower’s total debt must be within the ranges in Section 5.0. of these Program Guidelines.

D. The Program Operator will determine the level of subsidy and affordability during underwriting of the Program’s loan to make sure that it conforms to the requirements of the HCD funding Program.

1.5. HOMEBUYER EDUCATION
All Program participants are required to receive housing counseling prior to Program approval, delivered by a HUD-certified housing counselor who works for an organization certified by HUD to perform housing counseling. The Program Operator will provide the homebuyer with the needed counselor information. A list of such counseling entities is available at:
https://hud4.my.site.com/housingcounseling/s/?language=en_US.

A copy of the applicant’s certificate of completion must be placed into the homebuyer file maintained by the Program Operator. In addition, the Program Operator must include evidence that the counseling provider was HUD-certified when the counseling certification was issued.

Acceptable forms of housing counseling include in-person, phone, and/or internet, provided the client and counselor have an individualized dialogue, with guidance and advice tailored to client’s needs. This includes creating a client budget, financial analysis, an action plan, and referrals to relevant resources such as down payment assistance programs or legal services.

Housing Counseling defined: Housing counseling is independent, expert advice customized to the need of the consumer to address the consumer's housing barriers and to help achieve their housing goals and must include the following processes: Intake; financial and housing affordability analysis; an action plan, and a reasonable effort to have follow-up communication with the client when possible. The content and process of housing counseling must meet the standards outlined in 24 CFR Part 214, which include:
• addressing unique financial circumstances or housing issues; • focusing on ways of overcoming specific obstacles to achieving a housing goal such as repairing credit;
• addressing a rental dispute, purchasing a home, locating cash for a down payment, and being informed of fair housing and fair lending requirements of the Fair Housing Act; City of Tulare HOME Program First-Time Homebuyer Program Guidelines Page 9 • finding units accessible to persons with disabilities; • avoiding foreclosure;
• resolving a financial crisis; and
• the creation of an action plan.

1.6. CONFLICT OF INTEREST REQUIREMENTS
The applicable Conflict of Interest requirements of 24 CFR section 92.356 of the HOME Final Rule shall be followed for HOME assistance, as follows:
(a) Conflicts prohibited. No persons described in paragraph (b) of this section who exercises or has exercised any functions or responsibilities with respect to activities assisted with HOME funds or who are in a position to participate in a decision making process or gain inside information with regard to these activities, may obtain a financial interest or benefit from a HOME-assisted activity, or have a financial interest in any contract, subcontract or agreement with respect to the HOME-assisted activity, or the proceeds from such activity, either for themselves or those with whom they have business or immediate family ties, during their tenure or for one year thereafter. Immediate family ties include (whether by blood, marriage, or adoption) the spouse, parent (including stepparent), child (including stepchild), brother, sister (including a stepbrother or stepsister), grandparent, grandchild, and in-laws of a covered person. (b) Persons covered. The conflict-of-interest provisions of paragraph (a) of this section apply to any person who is an employee, agent, consultant, officer, or elected official or appointed official of the participating jurisdiction, State recipient, or subrecipient receiving HOME funds. (c) Exceptions: Threshold requirements. Upon the written request of the participating jurisdiction to HCD, HUD may grant an exception to the provisions of paragraph (a) of this section on a case-by-case basis when it determines that the exception will serve to further the purposes of the HOME Investment Partnerships Program and the effective and efficient administration of the participating jurisdiction's program or project. See 24 CFR sections

92.356(d)(1-6) for details on the documentation needed in order to submit an exception request to HUD.

1.7. NON-DISCRIMINATION REQUIREMENTS
The Program will be implemented in ways consistent with the Sponsor’s commitment to nondiscrimination. No person shall be excluded from participation in, denied the benefit of, or be subject to discrimination under any program or activity funded in whole or in part with State or federal funds on the basis of race, color, ancestry, national origin, citizenship, immigration status, primary language, religion, disability (mental or physical), sex and gender, sexual orientation, gender identity, gender expression, genetic information, marital status, familial status (families with children under 18 or people who are pregnant), source of income, military or veteran status, or age.

2.0 APPLICANT QUALIFICATIONS

2.1. CURRENT INCOME LIMITS FOR THE AREA, BY HOUSEHOLD SIZE All applicants must certify that they meet the household income eligibility requirements for the applicable HCD program(s) and have their household income documented. The income limits in place at the time of loan approval will apply when determining applicant income eligibility.

City of Tulare HOME Program First-Time Homebuyer Program Guidelines Page 10 All applicants must have incomes at or below 80% of the County’s area median income (AMI), adjusted for household size, as published by HCD.
(See Attachment C for current income limits).

Household: Means one or more persons who will occupy a housing unit. Unborn children don’t count in family size determination.

Annual Income: Generally, this is the gross amount of income of all adult household members that is anticipated to be received during the coming 12-month period.

City of Tulare HOME Program First-Time Homebuyer Program Guidelines Page 11

2.2. INCOME QUALIFICATION CRITERIA
Projected annual gross income of the applicant household will be used to determine whether they are above or below the HCD-published HUD income limits. The annual income definition found at 24 CFR Part 5, as detailed in the most recent HCD program-specific guidance at https://www.hcd.ca.gov/grants-and-funding/income-limits/income-calculation-anddetermination-guide, will be used to independently determine and certify the household’s annual gross income. The Program Operator should compare this annual gross income to the income the primary lender used when qualifying the household. The primary lender is usually underwriting to FHA or conventional guidelines and may not calculate the household income or assets in the same way as required by the Program. Income will be verified by examining at least 2 months of source documents evidencing annual income (e.g., wage statement, interest statement, unemployment compensation statement) and six months of checking statements for the household. All documentation shall be dated within six months prior to loan closing and kept in the applicant file and held in strict confidence.

A. HOUSEHOLD INCOME DEFINITION:

Household income is the annual gross income of all adult household members that is projected to be received during the coming 12-month period and will be used to determine program eligibility. For those types of income counted, gross amounts (before any deductions have been taken) are used. The income of live-in aides and the earned income of minors are not included in annual gross income calculations. Certain other household members living apart from the household also require special consideration. The household’s projected income must be used, rather than past earnings, when calculating income.

See Attachment A: Income Inclusions and Exclusions
B. ASSETS:

There is no asset limitation for participation in the Program. Income, or imputed income from assets, however, is recognized as part of annual income under the 24 CFR Part 5 regulations (included as Attachments A and B). An asset is a cash or non-cash item that can be converted to cash. The value of necessary items such as furniture and automobiles are not included. (Note: it is the income earned – e.g., interest on a savings account – or in some cases imputed income, not the asset value, which is counted in annual income.) An asset’s cash value is the market value, less reasonable expenses required to convert the asset to cash, including, for example, penalties or fees for converting financial holdings, and costs for selling real property. The cash value (rather than the market value) of an item is counted as an asset.

See Attachment B: Asset Inclusions and Exclusions

2.3. DEFINITION OF AN ELIGIBLE HOMEBUYER
Program Operators are required to use the following definition of an eligible homebuyer, which is a “first-time homebuyer” from 8201(m) Title 25 California Code of Regulations:
“First-time homebuyer” means an individual or individuals, or an individual and his or her spouse who have not owned a home during the three-year period before the purchase of a home with subsidy assistance, except that the following individual or individuals City of Tulare HOME Program First-Time Homebuyer Program Guidelines Page 12 may not be excluded from consideration as a first-time homebuyer under this definition:

1. a displaced homemaker who, while a homemaker, owned a home with his or herspouse or resided in a home owned by the spouse. A displaced homemaker is an adult who has not, within the preceding two years, worked on a full-time basis as a member of the labor force for a consecutive twelve-month period and who has been unemployed or underemployed, experienced difficulty in obtaining or upgrading employment and worked primarily without remuneration to care for his or her home and family;

2. a single parent who, while married, owned a home with his or her spouse or resided in a home owned by the spouse. A single parent is an individual who is unmarried or legally separated from a spouse and has one or more minor children for whom the individual has custody or joint custody or is pregnant; or

3. an individual or individuals who owns or owned, as a principal residence during the three-year period before the purchase of a home with assistance, a dwelling unit whose structure is:
a. not permanently affixed to a permanent foundation in accordance with local or state regulations; or
b. not in compliance with state, local, or model building codes and cannot be brought into compliance with such codes for less than the cost of constructing a permanent structure.

3.0. HOUSING UNIT ELIGIBILITY

3.1. LOCATION AND CHARACTERISTICS
A. Housing units to be purchased must be located within the eligible area. The eligible area is described as follows: “Within the City of Tulare’s jurisdictional limits.” B. Housing unit types eligible for the Homebuyer Program are new or previously-owned single-family residences; condominiums; or manufactured homes in mobile home parks, in common-interest developments or on a single-family lot and placed on a permanent foundation system. HOME does not allow manufactured homes unless on a permanent foundation system.

C. All housing units must be in compliance with property standards in Section 1.3.B.3 of these Program Guidelines. The buyers will obtain a Certified Home Inspection, or a Sponsor Representative or Program Operator will inspect the unit for any health/safety and code compliance violations, and any deficiencies must be corrected and documented prior to the close of escrow.

D. Housing units located within a 100-year flood zone will be required to provide proof of flood insurance with an endorsement naming the City of Tulare as loss payee in order to close escrow.

E. Housing must be “modest”, in accordance with the federal HOME regulations at 24 CFR section 92.254(a)(2).

City of Tulare HOME Program First-Time Homebuyer Program Guidelines Page 13

3.2. CONDITIONS
A. Construction Inspection and Determining Need for Repairs.

Once the participating homebuyer has executed a purchase agreement for a housing unit and, prior to a commitment of Program funds, the following steps must be taken for the housing unit to be eligible for purchase under the Program:
1) When the Sponsor’s Program utilizes Federal funds and if the housing unit was constructed prior to 1978 then the lead-based paint requirements of Section 3.2.C will apply.

The Program Operator is responsible to ensure that a certified housing inspector walks through the housing unit, determines if it is structurally sound, and identifies any coderelated and health and safety deficiencies that need to be corrected. A list of necessary repair items will be given to the homebuyers and their Realtor to present to the seller’s agent.

If there are one or more health and safety deficiencies, and/or violations of applicable building codes noted in the written report, the Sponsor will approve the subsidy only if prior to close of escrow, and seller agrees to have necessary repairs made to the dwelling unit prior to transfer of property ownership, at the seller’s expense.

Upon completion of all work required by the Program Operator, Sponsor, appraiser, pest inspector and/or certified housing inspector, a final inspection will be conducted prior to close of escrow. The inspector will sign off on all required construction work assuring that each housing unit receiving Program assistance complies with Section 1.3.B.3. requirements of these Program Guidelines that the unit is decent, safe, sanitary, and in good repair, and that it meets all applicable State and local housing quality standards and code requirements and does not contain the specific deficiencies established by HUD based on the applicable standards in 24 CFR section 5.703 and published in the Federal Register for HOME-assisted projects and units, at the time of purchase and prior to occupancy.
2) Only new construction and homes built within the previous 12 months and not previously occupied are not subject to a home inspection.

B. Per 24 CFR section 92.214(a)(6), no additional HOME assistance, including rehabilitation funds, may be provided after the 1-year anniversary of the filing of the Project Completion Report through the end of the HOME Affordability Period. The HOME Affordability Period is as follows (amount does not include Activity Delivery and Administration Costs paid to the State Recipient by HCD):

Amount of HOME Assistance Period of Affordability in Years Under $25,000 5 years
$25,000 to $50,000 10 years
Over $50,000 15 years
During the HOME Affordability Period, the home must remain occupied by the borrower or an eligible heir, as their primary residence, or else all HOME assistance becomes due and payable.

City of Tulare HOME Program First-Time Homebuyer Program Guidelines Page 14 C. Lead-Based Paint Hazards: All housing units built prior to 1978 for which HOME funding is anticipated are subject to the requirements of this section 3.2.C. Such homes must undergo a visual assessment by a person who has taken HUD’s online Visual Assessment course. Deteriorated paint must be stabilized using work safe methods.

Clearance must be obtained after paint stabilization by a DHS-certified LBP Risk Assessor/Inspector. HOME general administrative and activity delivery funds may be used to pay for lead-based paint visual assessments, and if lead mitigation and clearance costs are incurred, these programs may incorporate the costs into the calculation of Program assistance.

D. The following requirements must be met:
1) Notification: a) Prior to homebuyer’s obligation to purchase a home built prior to 1978, the Buyer will be given the most recent copy of and asked to read the EPA pamphlet “Protect Your Family From Lead in Your Home”. (EPA 747-K-94-001).

A signed receipt of the pamphlet will be kept in the Sponsor’s homebuyer file; b) A notice to residents is required following a risk assessment/inspection using form DHS 8552, which is provided by the DHS-certified Risk Assessor/Inspector; c) a notice to residents is required following lead-based paint mitigation work using Visual Assessment and Lead-based Paint Notice of Presumption and Hazard Reduction form, LBP – 1 (Attachment H).
2) Disclosure: Prior to the homebuyer’s obligation to purchase a home built prior to 1978, the HUD disclosure (Attachment E), “Seller’s Lead-based Paint Disclosure” notice must be provided by the seller to the homebuyer. 3) Inspections: The Inspector shall conduct a “Visual Assessment” of all the dwelling unit’s painted surfaces to identify deteriorated paint. All deteriorated paint will be stabilized in accordance with CFR 35.1330 (a) and (b); and a Clearance shall be made in accordance with CFR 35.1340.
4) Mitigation: If stabilization is required, the contractor performing the mitigation work must use appropriately-trained workers. Prior to the contractor starting mitigation work, the Program Operator shall obtain copies of the contractor’s and workers’ appropriate proof of LBP training, as applicable to the job, to assure that only qualified contractors and workers are allowed to perform the mitigation.

E. The Program Operator will: 1) confirm that the housing unit is within the eligible area, 2) will review each proposed housing unit to ensure that it meets all eligibility criteria before funding, and 3) ensure a completed Lead Compliance Document Checklist is placed in each purchaser’s file (see Attachment I).

F. Environmental Review: Program Operator conducts an Environmental Review in accordance with 24 CFR Part 58, and Sponsor’s NEPA Certifying Officer signs the appropriate form before any commitment of funds are made to the homebuyer. An acquisition must not include rehabilitation immediately after transfer of title, and requires completion of a HUD CENST form from the Environmental Review - HUD Exchange webpage.

3.3. ANTI-DISPLACEMENT POLICY AND RELOCATION ASSISTANCE Eligible homes will be those that are currently owner-occupied or have been vacant for three months prior to the acceptance of a contract to purchase. A unit is ineligible if its purchase would City of Tulare HOME Program First-Time Homebuyer Program Guidelines Page 15 result in the displacement of a tenant. It is not anticipated that the implementation of the Program will result in the displacement of any persons, households, or families. However, if tenantoccupied homes are inadvertently included in the Program and relocation becomes necessary, the activity will be carried out in compliance with Sponsor’s relocation plan, which describes how those permanently displaced will be relocated and paid benefits in accordance with the following Federal laws.

A. Uniform Relocation Assistance (URA) and Real Property Acquisition Policies Act of 1970
The federal URA and Real Property Acquisition Policies Act of 1970, as amended, contains requirements for carrying out real property acquisition or the displacement of a person, regardless of income status, for a project or program for which HUD financial assistance (including HOME) is provided. Requirements governing real property acquisition are described in HUD’s CPD Handbook 1378.0. The implementing regulations, 49 CFR Part 24, require developers and owners to take certain steps regarding tenants of housing to be acquired, rehabilitated, or demolished, including tenants who will not be relocated even temporarily.

B. Section104(d) of the Housing and Community Development Act of 1974 Section 104(d) requires each contractor (CHDO or State Recipient), as a condition of receiving assistance under HOME, to certify that it is following a residential antidisplacement plan and relocation assistance plan. Section 104(d) also requires relocation benefits to be provided to low-income persons who are physically displaced or economically displaced as the result of a HOME-assisted project, and requires the replacement of low-income housing, which is demolished or converted. The implementing regulations for Section 104(d) can be found in 24 CFR Part 42, subpart (C).

3.4. PROPER NOTIFICATION AND DISCLOSURES
A. Upon selection of a housing unit, a qualified seller and homebuyer will be given the necessary disclosures for the Program. The homebuyer must have read and signed all Program disclosure forms. All property disclosures must be reviewed and signed by the homebuyer and seller.

B. All owners who wish to sell their housing units must receive an acquisition notice (Attachment F) prior to submission of the homebuyer’s original offer. This notice will be included in the contract and must be signed by all owners on title. The disclosure must contain the items listed in 1.3.B. (required for federally-funded programs).

4.0. PURCHASE PRICE LIMITS
The purchase price limits for this Program shall not exceed the HOME Homeownership Value Limit for the Sponsor’s County as updated by HCD, or a temporary waiver limit approved by HUD and the Department.

Attachment C: HOME HOMEOWNERSHIP VALUE LIMITS *Sponsor will update these limits annually as HCD provides new information.

5.0. THE PRIMARY LOAN
City of Tulare HOME Program First-Time Homebuyer Program Guidelines Page 16 Prior to obtaining a loan from the Sponsor, a homebuyer must provide evidence of approval for the maximum amount the primary lender is willing to loan (the “primary loan”), although the Program may limit the primary loan amount based on the debt-to-income ratio maximums herein.

A. QUALIFYING RATIOS
The front-end (housing) debt-to-income ratio shall be between 25% and 35% and is the percentage of a borrower’s gross monthly income (before deductions) that would cover the cost of the loan principal and interest payment, property taxes, property insurance, and mortgage insurance and HOA dues, if any.

The back-end (total) debt-to-income ratio shall be between 28% and 42% and is the percentage of a borrower’s gross monthly income that would cover the cost of housing as described in the paragraph above, plus any other monthly debt payments like auto or personal loans, credit card debt, and student debt, as well as child support and alimony payments.

Exceptions to these maximums must be documented and placed into each loan file, to demonstrate compensating factors.

The Program Operator must complete the HOME Subsidy Calculation Worksheet and place it into the loan file to document that the HOME assistance amount was appropriate, based on compliance with the debt ratio ranges in the two preceding paragraphs of this subsection. The Worksheet is currently accessible on the HOME webpage at:
https://www.hcd.ca.gov/grants-funding/grantsforms/docs/HOME_FTHB_Subsidy_Calculation_Worksheet_June_2013_Version.xls.

B. INTEREST RATE
The primary loan must have a fixed interest rate that does not exceed, by greater than one percent, the Freddie Mac 30-year Fixed Rate Mortgage rate at https://www.freddiemac.com/pmms.

The applicable Freddie Mac rate should be from the date the primary mortgage rate was locked, or else the date of HOME loan approval. No temporary interest rate buy-downs are permitted.

The loan file must contain this documentation for Department monitoring purposes.

C. LOAN TYPE AND TERM
The primary loan shall be fully amortized and have a term “all due and payable” in no fewer than 30 years. There shall not be a balloon payment due before the maturity date of the Program loan.

D. IMPOUND ACCOUNT
All households will be required to have impound accounts for the payment of taxes and insurance to ensure they remain current.

6.0. THE PROGRAM LOAN
A. MAXIMUM AMOUNT OF PROGRAM ASSISTANCE
For HOME, the amount of Program assistance to a homebuyer toward purchase of a home shall not exceed the HOME Maximum Per-Unit Subsidy Limits (“Subsidy Limits”) for the State of City of Tulare HOME Program First-Time Homebuyer Program Guidelines Page 17 California. See Attachment C of these Program Guidelines for current Subsidy Limits. Any approved “grant” amount for lead-based paint evaluation and reduction activities or for relocation assistance shall be included in the Subsidy Limits evaluation, as shall Activity Delivery Costs.

B. NON-RECURRING CLOSING COSTS
Non-recurring costs such as credit report, escrow, closing and recording fees, and title report and title insurance, title updates and/or related costs may be included in the Program loan.

C. AFFORDABILITY PARAMETERS FOR HOMEBUYERS
The actual amount of a Homebuyer’s Program subsidy shall be computed according to the debtto-income ratio parameters specified in Section 5.0.A. Each borrower shall receive only the subsidy needed to allow them to become homeowners (“the Gap”) while keeping their housing costs affordable. The Program Operator will use the “front-end ratio” of housing-expense-toincome to determine if the amount of the proposed primary loan is acceptable and, ultimately, the Program subsidy amount required, bridging the gap between the acquisition cost (purchase price plus closing costs) less down payment, and the amount of the primary loan.

D. RATE AND TERMS FOR PROGRAM LOAN
All Program assistance to individual households shall be made in the form of a deferred payment (of principal and interest) loan (DPL).

The Program loan’s term shall be for as long as the primary loan, plus 15 years. If the primary mortgage is a Rural Development USDA Direct 502 loan, the Programs loan’s term shall be 48 or 53 years.

The Program loan’s interest rate shall be 0% simple interest.

All Program loan payments shall be deferred because the borrowers will have their repayment ability fully utilized under the primary loan. Loan principal shall not be forgiven, and the loan period cannot be extended, except for loans that are resubordinated when a rate and term refinance is approved, per Attachment D.

E. COMBINED LOAN-TO-VALUE RATIO
The loan-to-value ratio for a Program loan, when combined with all other indebtedness to be secured by the property, shall not exceed 100 percent of the sales price plus a maximum of up to 5 percent of the sales price to cover actual closing costs.

7.0. PROGRAM LOAN REPAYMENT (HOME RECAPTURE TERMS)

PROGRAM LOAN REPAYMENT (HOME RECAPTURE TERMS)
Recapture of Entire Direct Subsidy
The Program Lender recaptures the entire amount of the direct HOME subsidy provided to the homebuyer, plus any interest due according to the terms of the HOME Promissory Note, before the homebuyer receives a return. The recapture amount is limited to the net proceeds available from the sale or foreclosure.

City of Tulare HOME Program First-Time Homebuyer Program Guidelines Page 18 In cases where there is appreciation, (see definition of Appreciation), the homebuyer would retain any net proceeds exceeding the direct HOME assistance plus interest due that is recaptured.

In some cases, such as in declining housing markets, net proceeds available at the time of sale may be insufficient to recapture the entire direct HOME subsidy plus interest due provided to the homebuyer. Since the HOME Final Rule limits recapture to available net proceeds, the Program Lender can recapture only what is available from net proceeds. In a scenario where recapture provisions state that the entire direct HOME subsidy plus interest will be recaptured, and there are insufficient net proceeds available at sale, the Program Lender is not required to repay to the Department, and the Department is not required to pay back to HUD the difference between the total direct HOME subsidy and the amount available for recapture from net proceeds.

Example: A homebuyer receives $10,000 of HOME
down payment assistance to purchase a home. The
direct HOME subsidy to the homebuyer is $10,000,
which results in a five-year Period of Affordability. If the homebuyer sells the home after three years, the
grantee or state would recapture, assuming that there are sufficient net proceeds, the entire $10,000 direct HOME subsidy plus any interest due according to the terms of the HOME Promissory Note. The homebuyer would
receive any net proceeds in excess of that amount.

7.1. PAYMENTS ARE VOLUNTARY
Borrowers may begin making voluntary payments at any time, without penalty. Payments will be applied to principal, thus reducing accrual of simple interest.

7.2. RECEIVING LOAN PAYMENTS
A. Voluntary Program loan payments, and loan payoffs, shall be made to:

City of Tulare
Attention: Accountants | Finance Department
411 East Kern Avenue
Tulare, CA 93274
B. The Sponsor shall be the receiver of loan payments or recaptured funds and will maintain a financial record-keeping system to record payments and file statements on payment status. Payments shall be deposited and accounted for in the Sponsor’s Program Income Account, as required by the HOME program. The Program lender will accept loan payments from borrowers prepaying deferred loans, and from borrowers making payments in full upon sale or transfer of the property. All loan payments are payable to the Sponsor. The Sponsor may, at its discretion, enter into an agreement with a third party to collect and distribute payments and/or complete all loan servicing aspects of the Program.

City of Tulare HOME Program First-Time Homebuyer Program Guidelines Page 19

7.3. DUE UPON SALE OR TRANSFER
If an owner sells, transfers title, or discontinues principal residency in the purchased property during the HOME Affordability Period for any reason, the loan is immediately due and payable pursuant to the Recapture (loan repayment) terms in the HOME Loan Agreement.

Notwithstanding the foregoing, if the owner of the property dies, even after the HOME Affordability Period expires, an heir may assume the HOME loan at the same rate and terms, if the heir’s household meets each of the following requirements:
• does not exceed the current HOME income limits; and
• will immediately occupy the home as their principal residence.

During the HOME Affordability Period, if the property owner dies and the heir does not meet these HOME eligibility requirements, the loan is due and payable.

The loan will be in default if the borrower fails to maintain required fire or flood insurance or fails to pay property taxes. See Attachment D on loan defaults for further information on property restrictions.

7.4. LOAN SERVICING POLICIES AND PROCEDURES
See Attachment D for local loan servicing policies and procedures. While the attached policy outlines a system that can accommodate a crisis that restricts borrower repayment ability, it should in no way be misunderstood: The loan must be repaid. All legal means to ensure the repayment of a delinquent loan as outlined in the Loan Servicing Policies and Procedures shall be pursued.

7.5. LOAN MONITORING PROCEDURES
Sponsor must monitor Borrowers and their homes annually to ensure adherence to Program requirements including, but not limited to, the following:

A. Owner-occupancy during the Period of Affordability
B. Property tax payment
C. Hazard insurance coverage
D. Good standing on Primary loans

8.0. PROGRAM LOAN UNDERWRITING AND APPROVAL
A. Loan Underwriting
All homebuyers or their representatives shall receive an eligibility packet with all the necessary forms, disclosures, information, and application. The homebuyer must submit a complete application packet with all the Sponsor’s Program loan documents executed, as well as all the information from the primary lender. The primary lender shall submit copies of the following to the Sponsor: 1) fully-executed property sales contract with proper seller notification; 2) mortgage application with good faith estimates and first mortgage disclosures; 3) full mortgage credit report and rent verification; 4) current thirdparty income verifications and verifications of assets; 5) homeownership education certificate, if applicable; and 6) signed underwriting transmittal summary and final signed City of Tulare HOME Program First-Time Homebuyer Program Guidelines Page 20 loan application, both from primary lender. Staff will work with local lenders to ensure qualified participants receive only the benefit from the Sponsor’s Program needed to purchase the housing unit and that leveraged funds will be used when possible.

B. Creditworthiness
Qualifying ratios are only a rough guideline in determining a potential borrower’s creditworthiness. Many factors such as credit history, amount of down payment, and size of loan will influence the decision of the primary lender to approve or disapprove a particular loan. The borrower’s credit history will be reviewed by the Sponsor and documentation of such maintained in the loan file. The Sponsor may elect to obtain a credit report or rely on a current copy obtained by the primary lender. The Sponsor must use the information on the credit report for each adult borrower for its calculations of front-end and back-end debt-to-income ratios.

C. Documents from Primary Lender
After initial review of the qualified homebuyer's application packet, the Program Operator will request any additional documents needed. Documents may be e-mailed or faxed. Based on receipt and review of the final documents, the Program Operator will complete, sign, and date an income certification (using the most-recent HCD program’s guidance on income calculation and determination), and homebuyer certification (review of credit report and income taxes). Documentation of affordability shall then be verified, and a subsidy amount will be determined by the Program Operator.

D. Disclosure of Program and Loan Information to Homebuyers The Program will inform the borrower of the results of the income determination process, including the permissible range of primary mortgage payments and the maximum purchase price possible. Information on the Program’s application will be documented with third-party verifications and/or documents in the file. For example, the sales contact will provide the final purchase price and outline how much of the closing costs are to be paid by the seller, etc. The appraisal, termite, and title reports provide information to substantiate the information in the sales contract and guide the construction inspection.

The Program loan application provides current debt and housing information and will be documented by the credit report and income/asset verifications. The primary lender’s approval letter and estimated closing cost statement should reflect all the information in the loan package and show any contingencies of loan funding. Reviewing the primary lender’s loan underwriting documentation will provide basic information about the qualification of the applicant and substantiate the affordability provided by the Program loan. By reviewing and cross-checking all the primary lender information, the final Program loan amount approved will fall within the affordability parameters of the Program.

8.1. COMPLETION OF UNDERWRITING AND APPROVAL OF PROGRAM LOAN Once the loan approval package has been completed, the Program Operator will submit it to the Sponsor for approval. Sponsor will review the request and may approve it with or without conditions. Upon approval, a final closing date for escrow is set, and Program funds are provided to the homebuyer.

8.2. PRIMARY AND PROGRAM LOAN DOCUMENT SIGNING
The homebuyer(s) sign promissory notes, loan agreements, deeds of trust, and statutory lending City of Tulare HOME Program First-Time Homebuyer Program Guidelines Page 21 notices (Truth In Lending (TIL), etc.); the Deeds of Trust are recorded with the County Clerk/Recorder at the same time, and the request(s) for a copy of Notice of Default are also recorded with the County Clerk/Recorder.

8.3. ESCROW PROCEDURES
The escrow/title company shall review the escrow instructions provided by the Program Lender and shall issue California Land Title Association (CLTA) and American Land Title Association (ALTA) policies to the homebuyer and the Program Lender after closing. The CLTA policy is issued to the homebuyer and protects them against failure of title based on public records and against such unrecorded risks as forgery of a deed. The ALTA policy is issued to each lender providing additional coverage for the physical aspects of the property, as well as the homebuyer’s title failure. These aspects include anything which can be determined only through physical inspection, such as correct survey lines, encroachments, mechanics liens, mining claims, and water rights. The Program Lender instructs the escrow/title company in the escrow instructions what may show on the policy, the amount of insurance on the policy (all liens should be covered), and the loss payee (each lender should be listed as a loss payee and receive an original ALTA policy).

City of Tulare HOME Program First-Time Homebuyer Program Guidelines Page 22

9.0. SUBORDINATE FINANCING
Subordinate loans may be used to cover mortgage subsidy costs that exceed the Program maximum loan amount. All subordinate liens must have the payments deferred, and the term must be for at least as long as the term of the Program loan.

10.0. EXCEPTIONS AND SPECIAL CIRCUMSTANCES
The Sponsor may make amendments to these Participation Guidelines. Any changes shall be made in accordance with regulations and approved by the Sponsor’s HOME Program Representative or Program Manager. If internally required, the Sponsor’s Loan Committee and/or governing body would then need to approve said changes.

10.1. DEFINITION OF EXCEPTION
Any case to which a standard policy or procedure, as stated in the guidelines, does not apply or an applicant treated differently from others of the same class would be an exception.

10.2. PROCEDURES FOR EXCEPTIONAL CIRCUMSTANCES
A. The Sponsor or its agent may initiate consideration of an exception and prepare a report. This report shall contain a narrative, including the Sponsor's recommended course of action and any written or verbal information supplied by the applicant.

B. The Sponsor shall make a determination regarding the exception request based on the recommendation of the Program Operator. The request can be presented to the Sponsor’s loan committee and/or governing body for a decision.

C. Note: such exceptions may not directly or indirectly discriminate against protected classes under all current federal fair housing law and state statutes and regulations.

11.0. DISPUTE RESOLUTION AND APPEALS PROCEDURE
Any applicant denied assistance from the Program has the right to appeal. Complaints concerning the Program should be made to the Program Operator first. If unresolved in this manner, the complaint or appeal must be made in writing and filed with the Sponsor. The Sponsor will then schedule a meeting with the Loan Review Committee. Their written response will be made within thirty (30) working days. If the applicant is not satisfied with the Committee's decision, a request for an appeal may be filed with the Sponsor’s governing body.

Final appeal must be filed in writing with HCD within one year after denial.

City of Tulare HOME Program First-Time Homebuyer Program Guidelines Page 23

ATTACHMENT A
Income Inclusions and Exclusions
The Program Operator shall access the current federal income determination regulations online at https://www.ecfr.gov/current/title-24/subtitle-A/part-5/subpart-F/subject-groupECFR174c6349abd095d/section-5.609,regarding income inclusions and exclusions.

City of Tulare HOME Program First-Time Homebuyer Program Guidelines Page 24

ATTACHMENT B
Asset Inclusions and Exclusions
The Program Operator shall access the current federal income determination regulations at https://www.ecfr.gov/current/title-24/subtitle-A/part-5/subpart-F/section-5.603 regarding the definition of Net family assets, to which the regulations at section 5.609 refer.

City of Tulare HOME Program First-Time Homebuyer Program Guidelines Page 25

ATTACHMENT C
HOME HOMEOWNERSHIP VALUE LIMITS FOR TULARE COUNTY*
(Limits effective 9/1/2024)

EXISTING

CONSTRUCTION

NEW CONSTRUCTION
(less than 12 months old)
$371,000 $392,000

HOME MAXIMUM PER-UNIT SUBSIDY LIMITS FOR CALIFORNIA
(Limits effective 2/13/2024)
O-BDR 1-BDR 2-BDR 3-BDR 4-BDR
$181,488 $208,049 $252,994 $327,293 $359,263
HOME INCOME LIMITS FOR TULARE COUNTY*
(Limits effective 6/1/2025)
Number of Persons in Household
1 2 3 4 5 6 7 8
80%
of
AMI
$52,600 $60,100 $67,600 $75,100 $81,150 $87,150 $93,450 $99,150 *Sponsor will insert these limits for the county in which the Program is located and will update the limits annually as HCD provides new information. The link to the official, HCD-maintained Value, Subsidy, and income limits is: https://www.hcd.ca.gov/funding/income-limits/statefederal-income-limits/cdbg-home-nhtf City of Tulare HOME Program First-Time Homebuyer Program Guidelines Page 26

ATTACHMENT D

LOAN SERVICING POLICIES AND PROCEDURES

FOR CITYOF TULARE

The policies and procedures are broken down into the following areas: 1) making required monthly payments or voluntary payments on a loan’s principal and interest; 2) required payment of property taxes and insurance; 3) required Request for Notice of Default on all second mortgages; 4) loans with annual occupancy restrictions and certifications; 5) required noticing and limitations on any changes in title or use of property; 6) required noticing and process for requesting a subordination during a refinance; and 7) processing of foreclosure in case of default on the loan.

1. Loan Repayments:

Promissory Notes are for deferred payment loans, but the Lender must accept voluntary payments on the loan. Loan payments will be credited to principal. The Borrower may repay the loan balance at any time with no penalty.

Program loan payments, and loan payoffs, shall be made to:

City of Tulare
Attn: Accountants – Finance Department
411 E. Kern Ave.

Tulare, CA. 93274

2. Payment of Property Taxes and Insurance:

As part of keeping the loan from going into default, borrower must maintain property insurance coverage naming the Lender as loss payee.

If a property is located in a 100-year floodplain, the Borrower will be required to obtain flood insurance.

A certificate of insurance for both flood and standard property insurance, with an endorsement naming the City of Tulare as “Lender” and listing them as the lender loss payee, will be required at the close of escrow. The Lender will verify the insurance coverage annually.

Property taxes must be kept current during the term of the loan. The Lender requires Borrower to have impound accounts set up with their first mortgagee wherein they pay their taxes and insurance as part of their monthly mortgage payment.

3. Required Request for Notice of Default:

When the Borrower’s loan is in second position behind an existing first mortgage, it is the Lender's policy to prepare and record a "Request for Notice of Default" for each senior lien in front of Lender’s loan. This document requires any senior lienholder listed in the notice to notify the Lender of initiation of a foreclosure action. The Lender will then contact the Borrower and assist them in bringing the first loan current, if possible. The Lender can also monitor the foreclosure process and go through the necessary analysis to determine if the loan can be made whole or preserved. When the Lender is in a third position and receives notification of foreclosure from only one senior lienholder, it is in their best interest to contact any other senior lienholders regarding the status of their loans.

City of Tulare HOME Program First-Time Homebuyer Program Guidelines Page 27

4. Annual Occupancy Restrictions and Certifications:

On owner-occupant loans, the Lender will require that Borrowers submit utility bills and/or other documentation annually to prove occupancy during the term of the loan. Annual occupancy verification will occur between March 1 and 31 of each year for the term of the loan.

5. Required Noticing and Restrictions on Any Changes of Title or Occupancy:

In all cases where there is a change in title, occupancy, and/or use, the Borrower must notify the Lender in writing of the change.

If a transfer of the property occurs through inheritance, the heir (as owner-occupant) may be provided the opportunity to assume the loan, provided the heir is income eligible. If the heir intends to occupy the property and is not low-income, the balance of the loan is due and payable.

If the owner moves out and converts the owner-occupied unit into a rental unit before the end of the HOME Affordability Period, the loan is due in full, unless the owner moves back in immediately.

Conversion to use other than residential use is not allowable where the full use of the property is changed from residential to commercial or other. In some cases, Borrowers may request that the Lender allow for a partial conversion where some of the residence is used for a business, but the household still resides in the property. Partial conversions can be allowed if it is reviewed and approved by all agencies required by local statute. If the use of the property is converted to a fully non-residential use, the loan balance is due and payable.

6. Requests for Subordinations:

When a Borrower wishes to refinance their existing first mortgage, they must submit a subordination request to the Program Lender. Approved refinancing of senior debt will be limited by the Department to circumstances in which the original homebuyer is securing more favorable terms that reduce monthly housing costs, or if sufficient equity exists, to take cash out for only items such as for immediate repairs to the property to correct identified health and safety violations.

There can be no third-party debt payoffs or additional encumbrances on the property. The total indebtedness on the property should not exceed the current market value, except when the borrower is obtaining a federally-sponsored refinance program loan. If said loan is approved and meets all other requirements, Combined Loan-To-Value will not be considered when reviewing the subordination request.

Also, the loan must:

1. be fully amortized and have a fixed interest rate that does not exceed the current market rate, as established by an index identified in these Program Guidelines;

2. not have a temporary interest rate buy-down;

3. have a term “all due and payable” that matures prior to or concurrently with the maturity date of the Promissory Note. Therefore, the maturity date of the existing Promissory Note shall be modified to coincide with the maturity date of the new first mortgage; and

4. not have a balloon payment due before the maturity date of the Program loan.

Upon receiving the proper documentation from the refinance lender, the request will be considered by the Sponsor’s loan committee for review and approval. Upon approval, the escrow company will provide the proper subordination document for execution and recordation by the Sponsor.

7. Process for Loan Foreclosure:

Upon any condition of loan default, such as non-payment, lack of insurance or property tax payment, change in title or use without approval, or default on senior loans, the Lender will send out a letter to City of Tulare HOME Program First-Time Homebuyer Program Guidelines Page 28 the Borrower notifying them of the default status. If the default status continues, the Lender may start the formal process of foreclosure.

When a senior lienholder starts a foreclosure process and the Lender is notified via a Request for Notice of Default, the Lender, who is the junior lienholder, may cancel the foreclosure proceedings by "reinstating" the senior lienholder. The reinstatement amount or payoff amount must be obtained by contacting the senior lienholder. This amount will include all delinquent payments, late charges, and fees to date. Lender must confer with Borrower to determine if, upon paying the senior lienholder current, the Borrower can provide future payments. If this is the case, then the Lender may cure the foreclosure and add the costs to the balance of the loan with a Notice of Additional Advance on the existing note. HOME funds may not be used for this purpose.

If the Lender determines, based on information on the reinstatement amount and status of Borrower, that bringing the loan current will not preserve the loan, then staff must determine if it is cost effective to protect their position by paying off the senior lienholder in total and restructuring the debt such that the unit is made affordable to the Borrower. If the Lender does not have sufficient funds to pay the senior lienholder in full, then they may choose to cure the senior lienholder and foreclose on the property themselves. If there is sufficient value in the property, then the Lender can afford to pay for the foreclosure process, pay off the senior lienholder, and retain some or all of its investment.

If the Lender decides to reinstate, the senior lienholder will accept the amount to reinstate the loan until five (5) days prior to the set "foreclosure sale date." This "foreclosure sale date" usually occurs about four (4) to six (6) months from the date of recording of the "Notice of Default." If the Lender fails to reinstate the senior lienholder before five (5) days prior to the foreclosure sale date, the senior lienholder will then require a full payoff of the balance, plus related foreclosure administrative costs, to cancel foreclosure. If the Lender determines the reinstatement and maintenance of the property is not cost effective and allows the senior lienholder to complete foreclosure, the Lender's lien may be released once net available proceeds are received, if any.

Lender as Senior Lienholder
When the Lender is first position as a senior lienholder, active collection efforts will begin on any loan that is 31 or more days in arrears. Attempts will be made to assist the homeowner in bringing and keeping the loan current. These attempts will be conveyed in an increasingly urgent manner until loan payments have reached 90 days in arrears, at which time the Lender may consider foreclosure. Lender’s staff will consider the following factors before initiating foreclosure:
1) Can the loan be cured, and can the rates and terms be adjusted to allow for affordable payments such that foreclosure is not necessary?
2) Can the Borrower refinance with a private lender and pay off the Lender? 3) Can the Borrower sell the property and pay off the Lender? 4) Does the balance warrant foreclosure? (If the balance is under $5,000, the expense to foreclose may not be worth pursuing.)
5) Will the sales price of home "as is" cover the principal balance owing, necessary advances, (maintain fire insurance, maintain or bring current delinquent property taxes, monthly yard maintenance, periodic inspections of property to prevent vandalism, etc.) foreclosure, and marketing costs?
City of Tulare HOME Program First-Time Homebuyer Program Guidelines Page 29 If the balance is substantial and all the above factors have been considered, the Lender may opt to initiate foreclosure. The Borrower must receive, by certified mail, a thirty-day notification of foreclosure initiation. This notification must include the exact amount of funds to be remitted to the Lender to prevent foreclosure (such as, funds to bring a delinquent BMIR current or pay off a DPL).

At the end of thirty calendar days, the Lender should contact a reputable foreclosure service or local title company to prepare and record foreclosure documents and make all necessary notifications to the owner and junior lienholders. The service will advise the Lender of all required documentation to initiate foreclosure (Note and Deed of Trust usually) and funds required from the owner to cancel foreclosure proceedings. The service will keep the Lender informed of the progress of the foreclosure proceedings.

When the process is completed, and the property has "reverted to the beneficiary" at the foreclosure sale, the Lender could sell the home themselves under a homebuyer program or use it for an affordable rental property managed by a local housing authority or use it for transitional housing facility or other eligible use. The Lender could contract with a local real estate broker to list and sell the home and use those funds for program income eligible uses.

City of Tulare HOME Program First-Time Homebuyer Program Guidelines Page 30

ATTACHMENT E
SELLER’S LEAD-BASED PAINT DISCLOSURE
Disclosure of Information on Lead-Based Paint and/or Lead-Based Paint Hazards

Lead Warning Statement
Every purchaser of any interest in residential real property on which a residential dwelling was built prior to 1978 is notified that such property may present exposure to lead from lead-based paint that may place young children at risk of developing lead poisoning. Lead poisoning in young children may produce permanent neurological damage, including learning disabilities, reduced intelligence quotient, behavioral problems, and impaired memory. Lead poisoning also poses a particular risk to pregnant women. The seller of any interest in residential real property is required to provide the buyer with any information on lead-based paint hazards from risk assessments or inspections in the seller’s possession and notify the buyer of any known lead-based paint hazards. A risk assessment or inspection for possible lead-based paint hazards is recommended prior to purchase.

Seller’s Disclosure
(a) Presence of lead-based paint and/or lead-based paint hazards (check (i) or (ii) below):
(i) ____ Known lead-based paint and/or lead-based paint hazards are present in the housing (explain).
________________________________________________________ (ii)____ Seller has no knowledge of lead-based paint and/or lead-based paint hazards in the housing.
(b) Records and reports available to the seller (check (i) or (ii) below):
(i) ____ Seller has provided the purchaser with all available records and reports pertaining to Lead-based paint and/or lead-based paint hazards in the housing (list documents below). —————————————————————————————————————
(ii) ____Seller has no reports or records pertaining to lead-based paint and/or lead-based paint hazards in the housing.

Purchaser’s Acknowledgment (initial)
(c)____Purchaser has received copies of all information listed above. (d)____Purchaser has received the pamphlet Protect Your Family from Lead in Your Home. (e)____Purchaser has received a 10-day opportunity (or mutually agreed upon period) to conduct a risk assessment or inspection for the presence of lead-based paint and/or lead-based paint hazards; or

Agent’s Acknowledgment (initial)
(f)____ Agent has informed the seller of the seller’s obligations under 42 U.S.C. 4852d and is aware of his/her responsibility to ensure compliance.

Certification of Accuracy
The following parties have reviewed the information above and certify, to the best of their knowledge, that the information they have provided is true and accurate. —————————— —————————— ————————— —————————
Seller Date Seller Date
—————————— —————————— ————————— —————————
Purchaser Date Purchaser Date
—————————— —————————— ————————— —————————
Agent Date Agent Date
City of Tulare HOME Program First-Time Homebuyer Program Guidelines Page 31

ATTACHMENT F
Disclosure to Seller with Voluntary, Arm's Length Purchase Offer

DECLARATION
This is to inform you that would like to purchase the property, located at , if a satisfactory agreement can be reached. We are prepared to pay $____________ for a clear title to the property under conditions described in the attached proposed contract of sale.

Because Federal funds may be used in the purchase, however, we are required to disclose to you the following information:

1. The sale is voluntary. If you do not wish to sell, the buyer, ___________________, thru the agency, _____________ will not acquire your property. The buyer does not have the power of eminent domain to acquire your property by condemnation (i.e., eminent domain) and the agency/Sponsor ________________________________ will not use the power of eminent domain to acquire the property.

2. The estimated fair market value of the property is $__________ and was estimated by _______________________________________, to be finally determined by a professional appraiser prior to close of escrow.

Since the purchase would be a voluntary, arm’s-length transaction, you would not be eligible for relocation payments or other relocation assistance under the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (URA), or any other law or regulation. Also, as indicated in the contract of sale, this offer is made on the condition that no tenant will be permitted to occupy the property before the sale is completed.

Again, please understand that if you do not wish to sell your property, we will take no further action to acquire it. If you are willing to sell the property under the conditions described in the attached contract of sale, please sign the contract, and return it to us at:
_______________________________________________. If you have any questions about this matter, please contact __________________________at ______________________.

Sincerely,
____________________________________
Title
_________________________________ _____________________ Buyer Date
_________________________________ _____________________ Buyer Date
Form continues on next page with Seller’s Acknowledgment City of Tulare HOME Program First-Time Homebuyer Program Guidelines Page 32 Disclosure to Seller with Voluntary, Arm's Length Purchase Offer (Page 2) Acknowledgement
As the Seller I/we understand that will inspect the property for health and safety deficiencies. I/we also understand that public funds may be involved in this transaction and, as such, if the property was built before 1978, a lead-based paint disclosure must be signed by both the buyer and seller, and that a Visual Assessment will be conducted to determine the presence of deteriorated paint.

As the Seller, I/we understand that the property must meet one of the following conditions at the time of submitting the purchase offer: it must be currently owner-occupied, vacant for at least three months, newly constructed (never occupied), or being purchased by the current renter. I/we hereby certify that the property is:
☐ Vacant at least 3 months; ☐ Owner-occupied; ☐ New; or ☐ Being Purchased by its Occupant I/we hereby certify that I have read and understand this “Declaration” and:
☐ a copy of said Notice was given to me prior to the offer to purchase.

If received after presentation of the purchase offer, I/We choose:
☐ to withdraw, or ☐ not to withdraw, from the Purchase Agreement. __________________________________ _______________________ Seller Date
__________________________________ _______________________ Seller Date
City of Tulare HOME Program First-Time Homebuyer Program Guidelines Page 33

ATTACHMENT G

CITY OF TULARE

INSTRUCTIONS TO HOMEBUYER

1. Homeownership can be a complicated process for first time homebuyers, to help navigate you and prepare you for homeownership, we recommend you first contact the Program Operator’s Homebuyer Counseling and Education (Gateway) Department at 559-651-1000.

2. You should then contact the Program Operator’s First-Time Homebuyer Loan Processor at 559- 802-1640 to verify funding availability and program information. If funds are available, you can move directly into the workload. If funds are not available you will be sent a pre-application to complete, sign and return to then be added to a waiting list for future funding.

3. Once funds are available and your name comes to the top of the waiting list, you will then be able to select a primary lender (Mortgage Company, Bank or Credit Union) of your choice to determine financing eligibility. Upon successful prequalification with a primary lender, your primary lender will submit a complete loan application package to Program Operator for review.

This package must be submitted along with a completed Submission Form/Lender Cover Letter and Application, provided by the Program Operator via the Program Operator’s website. Items to be included are proof of income, credit report and household size.

4. During the financing and Program eligibility review by Program Operator, household size, income, and Sponsor loan amount are determined. Prior to issuance of the prequalification letter the family, the following must occur:
a. Application package must be reviewed and signed by Program Operator b. Application package must be reviewed and signed by Sponsor Upon completion by all parties, Program Operator will issue a prequalification letter to the applicant and the primary lender on behalf of the Sponsor. Program Operator will contact or meet with qualified applicant to provide information relative to Program requirements and the lending process. In addition, Program Operator will issue a condition list to both parties requesting final and additional income and asset documentation, including verification of employment and all income sources.

5. Applicant works with Licensed Real Estate broker to find an eligible property. Properties are subject to the following requirements:
a. Properties must be located within the Sponsor’s eligible area (Program Operator will verify)
b. Properties must meet maximum sales price limits, as applicable c. Properties must be Vacant at least 3 months; ☐ Owner-occupied; ☐ New; or ☐ Being Purchased by its Occupant
Primary lender will submit accepted purchase agreement to Program Operator for review.

6. Applicant will work with primary lender to provide Program Operator all terms on the conditions list. The items include, but are not limited to:
a. Income documentation (3 months paystubs, 3 years tax returns and W-2’s, child support, verification of employment, verification of rent, etc.) b. Credit Report
City of Tulare HOME Program First-Time Homebuyer Program Guidelines Page 34 c. Asset documents (6 months bank statements, 401K, etc.) d. Property information (appraisal with photos, preliminary title report, home inspection, termite report and clearance, etc.)
e. Real Estate Sales Contract (contingent upon receiving Program loan approval) f. Residential loan application
g. Lead Base Paint Disclosure/Disclosure statement

7. A certified housing inspector, or a Sponsor representative will document health & safety and code compliance as well as conduct Lead-Based Paint Inspections. Seller must correct all deficiencies prior to the close of escrow.

8. Upon receipt of all conditions, Program Operator will prepare participant file for final loan approval with Sponsor. The primary lender should request the date of loan approval one week prior to the date of anticipated loan signing. At loan approval, Program Operator will present the application to Sponsor for review. Following loan approval, Program Operator will give loan documents to Sponsor for signatures. Loan documents are then forwarded to escrow company to coordinate loan signing.

9. Signed documents are returned to Program Operator for review. Upon review and confirmation of all conditions of final funding, Program Operator will wire funds to escrow.

10. Once loan is funded and recorded, escrow company provides a copy of all documents to Program Operator. Program Operator then closes out the loan file.

City of Tulare HOME Program First-Time Homebuyer Program Guidelines Page 35

ATTACHMENT H

LEAD-BASED PAINT

VISUAL ASSESSMENT, NOTICE OF PRESUMPTION, AND HAZARD REDUCTION FORM Section 1: Background Information
Property Address: No LBP found or LBP exempt □
Select one: Visual Assessment □ Presumption □ Hazard Reduction □ Section 2: Visual Assessment. Fill out Sections 1, 2, and 6. If paint stabilization is performed, also fill out Sections 4 and 5 after the work is completed.

Visual Assessment Date: Report Date:

Check if no deteriorated paint found □
Attachment A: Summary where deteriorated paint was found.

Section 3: Notice of Presumption. Fill out Sections 1, 3, 5, and 6. Provide to occupant w/in 15 days of presumption.

Date of Presumption Notice:

Lead-based paint is presumed to be present □ and/or Lead-based paint hazards are presumed to be present □ Attachment B: Summary of Presumption:

Section 4: Notice of Lead-Based Paint Hazard Reduction Activity. Fill out Sections 1, 4, 5, and 6.

Provide to occupant w/in 15 days of after work completed.

Date of Hazard Reduction Notice:

Initial Hazard Reduction Notice? Yes □ No □ Start & Completion Dates:

If “No”, dates of previous Hazard Reduction Activity Notices:

Attachment C: Activity locations and types.

Attachment D: Location of building components with lead-based paint remaining in the rooms, spaces, or areas where activities were conducted.

Section 6: Contact Information Organization:

Contact Name: Contact Signature:

Date: Address: Phone:

City of Tulare HOME Program First-Time Homebuyer Program Guidelines Page 36

ATTACHMENT I
Homebuyer Program Lead Compliance Document Checklist
The following documents should be in each Homebuyer unit file to document compliance with the lead requirements:

Document Name Purpose ✔
Lead Safe Housing Rule Screening Sheet Documents exemptions Physical inspection form (HQS or equivalent) Documents visual assessment results
Seller Certification Seller certifies that
paint was stabilized by
qualified workers and
that safe work practices
were followed during
paint stabilization
Clearance Report and Clearance Review Worksheet Documents that unit passed clearance
Lead-Based Paint and/or Lead-Based Paint Hazards
Disclosure Form DOC_12345.PDF (hud.gov)
Documents that buyer
received disclosure and
pamphlet.

Lead Hazard Reduction Notice LSHR-Sample-Notice-ofLead-Hazard-Reduction.pdf (hudexchange.info)Documents that buyer received required lead
hazard reduction
notification.

This was taken from the HUD Website at:
http://portal.hud.gov/hudportal/documents/huddoc?id=20264_leadcompliance.doc Staff Report
Meeting: City Council
Date: June 2, 2026
Department: Community Development - Housing
Submitted by: Jessica Cervantez, Housing and Grants Specialist Agenda Title: Acceptance and Appropriation of 2024 CalHome Program Grant

RECOMMENDED ACTION
Accept and appropriate a 2024 CalHome Program Award in the amount of $1,000,000 from the California Department of Housing and Community Development; and authorize the execution of a standard agreement, any amendments thereto, and any related documents necessary to participate in the CalHome Program.

SUMMARY
The California Department of Housing and Community Development (HCD or Department) released the 2024 Homeownership Super Notice of Funding Availability (HOSN) in December 2024 for approximately $176.8 million in funds for the following programs: CalHome Program ($143.1 million); and, Joe Serna, Jr. Farmworker Housing Grant Program – Homeownership (“Serna Homeownership”) ($33.7 million). The City of Tulare, with Self-Help Enterprises, received City Council’s permission to apply to the HOSN, via Resolution No. 2025-13, for $1,000,000 in CalHome grant funds to implement First Time Homebuyer Mortgage Assistance (MA) and Owner-Occupied Rehabilitation (OOR) activities.

The conditional award of $1,000,000 in 2024 CalHome Program funds is based on and subject to the representations of the City’s application to the 2024 Homeownership Super Notice of Funding Availability (HOSN) and other terms and conditions identified by HCD. Further, HCD requested that the City submit a new resolution accepting said award and related obligations, that identifies the Mayor as an “authorized representative” per California Government Code § 40602. This section states, among other measures, that “The mayor shall sign a) all warrants drawn on the city treasurer b) all written contracts and conveyances made or entered into by the city and c) all instruments requiring the city seal.” The City’s previously submitted Resolutions No. 2025-13 and No. 2025-70, did not list the Mayor as an authorized representative. As such, City staff prepared a new resolution as part of accepting the 2024 CalHome award and preparation for executing a standard agreement (Contract No. 25-CalHome-18734) with HCD.

CalHome Program Background
CalHome funding provides Loans and Grants to Local Public Entities and Nonprofits for Homeownership Development Projects, Self-Help Technical Assistance Projects, Mortgage Assistance Programs, OwnerOccupied Rehabilitation Programs, ADU/JADU Programs, Shared Housing Programs and Programs for the Acquisition of Manufactured Housing for Agricultural Households. The administration of the CalHome and Serna Programs are governed by the applicable Program Guidelines that implement, interpret, or make specific the following laws:
• The CalHome Program was established by Chapter 6, commencing with §50650) of Part 2 of Division 31 of the California Health & Safety Code (“HSC”); • The Serna Program was established by Chapter 3.2 (commencing with §50515.2) of Part 2 of Division 31 of the HSC. The Serna Guidelines referenced in this HOSN apply only to the Homeownership elements of Serna. Rental housing development activities are governed under a separate set of Program Guidelines;
• Building Homes and Jobs Act (Sen. Bill No. 2 (2017-2018 Reg. Sess.) § 1); and, • Veterans and Affordable Housing Bond Act of 2018 (Sen. Bill No. 3 (2017-2018 Reg. Sess.) § 1) which was adopted by voters on November 6, 2018, as Proposition 1, provided funding for the Item #: 8.10
Consent
CalHome and Serna Programs and authorized the Department to administer the Programs through the Guidelines. These Guidelines were explicitly exempt from the requirements of the Administrative Procedures Act (Chapter 3.5).

FISCAL IMPACT & FUNDING SOURCES
Acceptance of a 2024 CalHome Program award will impact Fund 310 and Account 751 by way of a new appropriation across Fiscal Years 2026, 2027, and/or 2028. As a grant, the award involves reimbursement for eligible expenses up to $1,000,000 between the City and its subrecipient.

ENVIRONMENTAL REVIEW
This action does not constitute a “project” pursuant to the California Environmental Quality Act (CEQA).

POTENTIAL CONFLICT OF INTEREST
Community Development Department staff find a potential conflict of interest with this action involving the Mayor, who is an employee of Self-Help Enterprises, the planned subrecipient of 2024 CalHome funds.

LEGAL REVIEW
This item does not require legal review.

PUBLIC NOTICE
This item does not require a public hearing and was noticed as a part of the agenda.

ALTERNATIVE ACTION

1. Approve with changes

2. Deny

3. Table
If the 2024 CalHome grant is not accepted by City Council, then the City will forfeit access to the conditional award of $1,000,000 and jeopardize future grant applications with HCD involving CalHome and/or related state programs.

ATTACHMENTS

1. Resolution
Reviewed/Approved: TG
RESOLUTION 2026-XXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TULARE
AUTHORIZING THE ACCEPTANCE AND APPROPRIATION OF A 2024 CALHOME PROGRAM

AWARD FROM THE CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY

DEVELOPMENT AND THE EXECUTION OF A STANDARD AGREEMENT, ANY AMENDMENTS

THERETO, AND ANY RELATED DOCUMENTS NECESSARY TO PARTICIPATE IN THE CALHOME

PROGRAM
WHEREAS, the California Department of Housing and Community Development ("Department"), as authorized by the California General Fund, CalHome Proposition 46 and Proposition 1C, and the Building Homes and Jobs Act (Sen. Bill No. 2 (2017-2018 Reg. Sess) §1: 2022 and 2023 CalHome issued a Homeownership Super Notice of Funding Availability, dated December 12, 2024, and amended on January 14 and 17, 2025 (“Homeownership Super NOFA”). The Homeownership Super NOFA provides funding under the following programs for homeownership: the CalHome Program and the Joe Serna, Jr., Farmworker Housing Grant Fund.; and
WHEREAS, the City of Tulare, a political subdivision of the State of California (“Public Entity”), submitted an application to the Department in response to the Homeownership Super NOFA (the “Application”) and was determined to be an eligible Grant Recipient under one or more of the foregoing programs (the “Program(s)”) pursuant to the certain conditional award letter, dated October 27, 2025 (the “Conditional Award Commitment”).; and
WHEREAS, pursuant to the Conditional Award Commitment, the Department made conditional awards to the Public Entity as follows:

Program Award
CalHome Program
Mortgage Assistance
$500,000
CalHome Program
Owner-Occupied Rehabilitation
$500,000
Total: $1,000,000
WHEREAS, each and all of the awards expressly identified above will hereinafter be referred to, both individually and collectively, as the “Program Award”.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Tulare that the Public Entity is hereby authorized and directed to act in connection with the Program Award, as follows:

Section 1. Public Entity is hereby authorized and directed to accept and incur an obligation for the Program Award. That in connection with the total amount of the Program Award, the Public Entity is authorized and directed to enter into, execute, and deliver one or more, Standard Agreement(s), and any and all other documents required or deemed necessary or appropriate to secure the Program Award from the Department and to participate in the relevant Program(s), and all amendments thereto (collectively, the “Program Award Documents”).

Section 2. Public Entity acknowledges and agrees that it shall be subject to the terms and conditions specified in the Standard Agreement(s), and that the Homeownership Super NOFA and the Application will be incorporated by reference therein and made a part thereof. Public Entity also acknowledges and agrees that any and all activities, expenditures, information, and timelines represented and described in the Application are enforceable through the relevant Standard Agreement(s). Public Resolution 2026-XX

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Tulare City CouncilJune 2, 2026

Tulare City Council
June 2, 2026