I. DEFINITIONS
For the purposes of this RFB NO. 21-22-43, the following terms shall have the meanings indicated:
1. “City” means the City of Visalia
2. “City Council” means the Council of the City of Visalia
3. "Bidder", "Vendor", "Supplier", “Cons ultant”, “ Contractor” and “Subrecipie nt” are used interchangeably throughout this invitation to mean the person, firm, or corporation or other entity submitting a Bid in response to the Request for Bid.
4. “Bid” and “Proposal” are used interchangeably to mean an individual’s or entity’s off er in respo nse to this Request for Bid.
5. “RFB” means Request for Bid No. 21-22-43.
II. PROJECT INTRODUCTION
The City of Visalia Purchasing Division is solicit ing Bids for an annual contract to repair a total of six (6) pumps, inclu ding one (1) 122hp, three (3) 110hp, and two (2) 82hp KSB dry pit submers ible influent pumps for the City’s Water Reclamation Facility located at 7579 Avenue 288 in Visalia, CA.
The initial contract s hall be for a twelve (1 2) month period and shall, at the City’s option and upon mutually agreeable terms, be renewable annually thereafter for four (4) consecutive one-year periods.
The successful bidder shall be responsible for prov iding all labor, mat erials, parts and services necessary to fulfill the r equirements o f this Invitatio n to Bid upon receipt of the City’s N otice to Proceed.
In an effort to encour age local businesses to provide goods and services to the City, Council ha s enacted a local preference. The local preference will apply to any business that has a business address within Tulare County for a minimu m of six months. A Post Office Box will not be accepted as a business address. The City reserves the right to request proof of Tulare County address.
The local preference for bids consists of a match preference in which a local vendor whose bid is within 5% of the apparent low bidder will be given three (3) business day s, from date notified, to match or beat the low bid . If there is more than one local vendor t hat is within the 5% range, th e offer goes to the local vendor that is closest to the low bid.
III. INSTRUCTIONS
1. Fill out attached Bid Form (Exhibit “A”) in ink or typewriting completely.
2. Cross out and initial mistakes in ink and place the correct response next to same.
3. Timely submit Bid in a sealed envelope addressed and marked as follows:
To: City of Visalia Purchasing Division
707 W. Acequia Avenue
Visalia, California 93291
From: Bidder’s Name
Bidder’s Mailing Address
Marked:
PROJECT: Rebuild and Repair of KSB Influent Pump and Motor (WWTP) RFB NO. 21-22-43
CLOSE DATE: Thursday, May 26, 2022 at 2:00 p.m.
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4. Submit each of the required Certifications, Affidavits, Bid Guara ntees Assurances, Statements and Questionnaires a s well as optional waiver(s) to City with the sealed Bid.
City will not consider Bids which are not accompanied by the required completed forms.
5. Inquiries: Instructions to Vendors, Specifications and Bid Forms may be obtained by visiting our web site at visaliapurchasing.org, by calling (559) 713 -4334, or by FAX (559) 713 -4802.
However, to p revent misinterpretations, th e Purchasing Div ision w ould prefer that all questions be sent by email to [email protected].
Deadline for submitting questions regarding this project is Thursday, May 19, 2022.
IV. SCOPE OF WORK/PROJECT SPECIFICATIONS
Contractor shall provide all labor, materials, parts (see Attachment D-1 for Parts List) and services to rebuild dry pit submersi ble KSB pumps for the City of Visalia’s Water Reclamation Facili ty.
Currently there are six (6) pumps installed at the plant . Influent pumps #1, #3 , and #5 are 110 horse-power pumps with #2 and #4 being 82 horse-power pumps, and #6 being 122 horse-power.
Number Horse Power
Pump #1 110
Pump #2 82
Pump #3 110
Pump #4 82
Pump #5 110
Pump #6 122
Pumps are to be rebuilt one at a time as needed. The project is imperative to operations at the City’s Facility and therefore the Awarded Contractor sho uld begin work withi n 10 days of receiving the City’s Notice to Proceed. All work shall be commensurate with the highest professional standards and shall be performed by an experienced contractor who has a proven record of experience in rebuilding pumps similar in size and type.
Awarded Contractor will enter into a contract for the off-site rebuild/repair of the pumps .
Contractor shall be responsible for pick-up and delivery of pumps to the Visali a Water Reclamation Facility, located at 7579 Ave. 288 in Visalia. City is responsible for installation of pumps.
Contractor shall provide a one (1) year warranty on all equipment.
V. PRE-BID AND PRECONSTRUCTION MEETINGS
Mandatory Pre-Bid Meetings have been scheduled for this project. Bidders are re quired to attend at least one of the mandat ory meetings in order to be eligible to bid on project. Meet ings will be held at 7579 Ave. 288 in Visalia, CA as follows:
Wednesday, May 11, 2022 at 10:00 a.m. and
Thursday, May 12, 2022 at 10:00 a.m.
Information on the project will be av ailable during the meetings and time is designated for Contractors to a sk questions about the work/co ntract. It shall be the responsibility of the Contractor to have acquired full knowledge of the job site, scope o f work and any problems or difficulties that may affect the work proposed.
1. Post Award/Pre-Construction Meeting. Subsequent to the award of co ntract, the Contractor or Construction Superintendent; as well as all identif ied subcontractors shall meet with the Project Manager prior to the start of work to discuss any problems or question s that may arise. 149
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Contractor s hall contact the Project Manage r within ten (10) days of the date of the Notice to Proceed to arrange this m eeting. Additionally, this confere nce will b e the forum to notify employers about labor standards compliance. At that time, Contractor shall furni sh a schedule showing the tenta tive starting and completion dates. Contractor is responsible to arrange thi s meeting.
City Project Manager: Eric Oates
Department: Wastewater Treatment Plant
VI. BID OPENING AND CONFIDENTIALITY
1. Bid Opening. Bids shal l be opened publicly in the pre sence of attendees, if any, on Thursday, May 26, 2022 at 2:00 p.m. at 707 W Acequia, Visalia CA, City Hall. The name of each Bidder and t he amount of each Bid shal l be open to public inspection at the Bi d opening and after a n award decision has been made. Other Bid information will not be available for public review during the evaluation phase or until the award of the contract.
2. Bid Confidentiality. The City favors full and open disclosure of all Bid records. The City will not expend public funds def ending c laims for access to, inspection of, or to be provided copies of any suc h records. By submitting a Bid, a Bidder a grees to indemnify and defend the City aga inst all claims or actions brought again st it to seek access to, or compel disclosure of, any records or documents in the City’s possession.
After the award, the City int ends th at its selection process w ill be ope n a nd public.
Respondents are advised tha t the California Public Records Act (“PR A”) provides that any person may inspect or be provi ded a copy of any identifiable public record or document that is not exempted f rom disclosure by the express pro visions of the Act. The F ederal Freedom of Information Act (“FOIA”) contains a similar prov ision. Each Bidder shall clearly identify any information within its Bid that it intends to ask the City to withhold as exempt und er either the PRA or F OIA. Any i nformation contained in a Bidder’s submission which the Bidder believe qualifies for exempti on from public disclo sure as “Proprietary” or “Confidential” must be identified as such at the time of first submission of Bidder’s Bid to this RFB. Any failure to identify information cont ained in a Bidder’s Bid to this RFB as “Proprietary” or “Confident ial” shall constitute a waiver of Bidder’s right to object t o the release of such information upon request under either Act.
VII. AWARD
1. Most Responsive, Respon sible Bidd er. A Contract (substantially similar to that attached hereto as Exhibit “C” with Attachments 1-2) shall be awarded with reasonable pr omptness by appropriate written notice. Award shall be made to the most respo nsive, responsible Bidder whose Proposal meets the requirements and criteria set fort h in this RFB, price and other factors c onsidered, and whose Bid is determined to result in t he optimum economic advantage to the City. A responsible Bidder is one who has the capability, financial capacity and integrity to perform the contract. A respon sive Bidder is one who commits to all of the material terms, for example, price, quantity, qu ality and delivery, of this RFB. Contractor must return a signed copy of the contract provided by the City wit h its Award Notice to City within ten (10) working days of receipt thereof.
2. Reservation of Rights. The City reserves the right to reject any it em or it ems in the Bid; to waive informalities, technical defects, and minor i rregularities in Bids received; and to select the Bid(s) deemed most advantageous to the City.
VIII. PROTESTS/APPEALS
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Because it is essential tha t Bidders have confidence in t he procu rement procedures for soli citing and awarding contracts, it is the policy of the City to offer Bidders the opportunity to appeal award of contracts.
The following procedures shall apply in regard to appeals:
1. Any a ctual Bidder who is aggrieved in conne ction with this RFB or award of a contract hereunder may protest to t he City of Visalia Purchasing Divisi on in writ ing within five (5) working days after suc h aggrieved Bidder knows, should have re asonably known, or co uld reasonably be expected to know of the facts giving rise thereto; and
2. Should identify only the are as regarding bid contradictions, procurement errors, quotation rating discrepancies, leg ality of procurement cont ext, conflict o f interest in the rat ing process and inappropriate or unfai r competitive procurement grievance regarding the Bid process.
3. The City’s Purchasing Division shall have the a uthority to sett le and resolve each protes t.
The resolution will be provided to Bidder in writing within five (5) working days of re ceipt of the appeal unless the Bidder is notified more time is required.
4. Further levels of appeal may be made in accordance with the appeals provision contained in Chapter 5 of the C ity’s “Purchasing and Contract Procedur es” which is available through City’s Purchasing Division.
IX. SPECIAL CONDITIONS
1. Project Administrative Issues
a. Complete Project . The succ essful Bidder shall be responsible for providing all materials, labor, equipmen t and services necessary to fulfill the requirements o f this RFB. It is the intent of this RFB and related agreement to describe a functionally complete project.
b. Quantities/Change Orders. The City reserves and shall have the right to make such changes to the work as may b e necessary and desirable to c omplete the work originally intended in an acceptable manner. Unless otherw ise specified herein, the Project Mana ger shall be and is he reby authorized to make su ch changes, in the work as may increase or decrease the original ly awarded contract quantities and/or total contract cost. The Contract Price, or the amount due the Contr actor will only be reduced/increased after the price change is reviewed and authorized by the City of Visalia Change Order Committee.
Should the Contractor disagree with any terms or conditions set forth in an approved contract change order not execut ed by the Contractor, the Contractor s hall submit a written protest to the Engineer within 15 days after the receip t of the approved contract change order and the procedures outlined in Section 4 -1.03 of the Standard Specifications apply.
If a requested cha nge order is sent back to the Contractor for rev isions, the Contractor has 15 (fifteen) calendar days to resubmit.
Changes shall not invalida te the contract nor release the surety, and the Contractor agrees to accept payment for such changes as if the alt ered work had been a p art of the original contra ct. These changes which are for work wi thin the general scope o f the contract shall be covere d by Cha nge Orders issued by the City. Change orders for altered work shall include extensions of contract time w here, in the Project Manager’s opinion, such ext ensions are commensurate with the amount and difficulty of added work.
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Excessive altered work shall be covered by supplemental agreement that is subject to funding agency approval as applicable. If the City and the C ontractor are unable to agree on a unit adjustment for any contract item that r equires a supplemental agreement, the City reserves th e right to terminate the contract with respect to the item and to make other arrangements for its completion.
c. Omitted Items. Project Manager is authorized to omit minor contract items. Major items must be omitted by supplemental agreement.
d. Extra Work. Contractor is prohibited from doing extra work, unless authorized in writing by Project Manager before the w ork is do ne. The Proj ect Manager should obtain authorization from the Change Order Committee before agreeing to extra work requested by the Contractor. In the instances where it is necessary for the work to be done im mediately, the Project Manager may auth orize the work prior to taking the additions to the Change Order Committee. Payment for approved Extra Work shall be as agreed to in writing by the P roject Manager prior to the Extra Work being completed or the Change Order Committee shall approve an incre ase in a Change Order issued after the Extra Wo rk is completed. No additional payment is due for unauthorized Extra Work.
If the Proje ct Manager authorizes Extra Work but the payment for the Extra Work has not been agreed to in writing prior to the work being completed, then Contractor shall submit to the Project Manager the documenta tion required for a Chan ge Order within forty -five (45) days o f completing the Extra Work. The Project Manager will submit a Chan ge Orde r request for review and approva l by the Change Order Committee. If the Contra ctor does not submit any documentation w ithin that time period, the Project Manager may move forward with issuing a Change Order to adjust the contract price.
e. Removal of Obstructions. Contractor shall remove an d dispose of all structures, debris or other obstructions of any character requ ired for completion of the project.
Any temporarily removed or relocated items shall be replaced.
f. Clean Up. Prior to acceptance and final payment, Contractor sh all clean up the site of work, and any areas occupied by Contractor in connection with the project.
2. City-Contractor Relations
a. Project Manag er’s Responsibility and Authority . City will designate a Project Manager. All work shall be done under th e general supervision of such Project Manager or his or her designee(s). The Project Ma nager shall decide issues of quality and acceptabilit y of mat erials, work performance, rate of progress of work, interpretation of drawings and specifications, and all questions related to f ulfillment of the contract for the project. Project Manager shall not have control over acts or omissions of the Contractor, Subcontractors, their agents or employees.
b. Contractor/Contractor’s Superintendent. Contractor shall bear all responsibility for, and have all control o ver, the construction means, methods, te chniques, sequences, procedures and safety precautions or pro grams related to the project. Contractor may designate a superintendent.
c. Project Site/Existing Utilities and Structures.
(1) Contractor shall take care to avoid, but shall be responsible for, all damage to existing structures, including, bu t not li mited to, sewers, water service, drains and culverts, underground utilities and the like.
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(2) USA Notification. Contractor shall notify underground servi ce alert (“USA) of times and locations of proposed excavations.
i. Contractor shall notify ow ners of and be responsible for damage to utilities and substructures.
ii. If damage occurs to an unknown utility, C ontractor shall repair the utility.
iii. Contractor shall not make connection to or draw water from any hydrant or pipeline without first obtaining permission to do so.
d. Signs, Barricades, and Notice . Contractor m ust pro vide and maintain proper barricades, fences, signal lights, watchmen, and notice in general to the surrounding public, in accord with local, federal, and state requirements.
e. Labor
(1) Workmanship. Workmanship shall be equal to the best general practice of modern-day fabrication shops and good construction practice.
(2) Qualification. Contractor shall ensure that each employee who works on this project is qualified to perform their assigned duty in a safe manner.
f. Control of Materials:
(1) Source of Supply and Quality of Materi als Guarantee. All ma terials, parts and equipment supplied by the Contractor shall be new and of a quality equal to that specified. Materia ls which become unfit for use shall not be used for the project.
(2) Equivalent Ma terials. Trade names or manufac turer’s c atalog inform ation, where used, are a m eans of indicating kind, type, design, s tyle, finish, durability or quality desired and are n ot inten ded to exclude or omit the products of any responsible manufacturer, if such products are equal in every respect to those specifi ed. The burden of proof o f compliance with the specifications is the responsibility of C ontractor. City shall be the sole judge as to the adequacy of any item for substitution.
(3) Manufacturer’s Directions. Manufactured articles, materials and equipment shall be applied, inst alled, connected, erected, used, cleaned and conditioned as directed by the manufacturer.
g. Storage of Materials. Materials shall be stored to ensure the preservation of the ir quality and fitness for the project.
h. Materials and Shop Drawing Submittal s. If applicable, Contractor shall subm it to Project Manager f or approval, two (2) copies of the mat erials list and detailed dimensional shop drawings covering all Cont ractor-furnished items of equipment.
Prior appr oval by Proje ct Manager is required. S uch approval shall not relieve the Contractor from the responsi bility of deviation from the C ontract unless Contractor has, in writing, called to the attention of the Project Manager such deviations.
3. a. Legal Responsibilities. It is the responsibilit y of Contractor to comply with all local , state, and federal l aws and regulations which appl y to thi s project. This includes, but is not limited to, compliance with U niform Building, Plumbing, Mechanical, Electric, and Fire Co des. Contractor shall pro vide a safe working environment in compliance with the Occupat ional Safety and Health Act, a nd California Health and Safety Codes. Additionally, Contractor shall secu re all necessary permits, licenses, and similar requirements to carry out the project. Contractor shall comply with all applicable labor laws and ensure against discrimination.
X. GENERAL CONDITIONS
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1. It is the policy of the City to provide equal o pportunity to all candidates when selec ting Bidders to provide public services. Bidders are expected to be equal opportunity employers.
The City hereby affirmatively ensures that Minority Business Enterprises and Disadvantaged Business Enterprises (DBE) will be afforded full opportunity to submit proposals in response to this notice. Individuals and/or entities submitting bids/proposals to the City of Visalia will not be discriminated against on the basis of race, r eligion, color, national origin, ancestry, physical or mental disability, medica l conditi on, genetic information, marital status, gender, gender identity or expression, sexual orientation, or military and veteran status in any consideration leading to the award of contract.
No qualified disabled person shall, on the basis of disabili ty, be excluded from participating in, be denied the benef its of, or otherwise be subjected to dis crimination under any program or activity leading to the award of a contract.
Bidder shall provide to the City a list of all instances within the last t en (10) years where a complaint was fi led or pending against Bidder in a legal or administrative proceeding alleging that Bidder discriminated agains t its em ployees, subcontractors, vendors or suppliers. A descrip tion of the status or resolution of that c omplaint, in cluding any remedial action taken is required.
The right is reserved by the City of Visalia to reject a ny or all proposals, to waive any irregularities or informalities not affected by law, to evaluate the pr oposals submitted and to award the contract according to the proposal which best serves the interests of said City.
2. Post-Closing Date Corrections are prohibited.
3. Bids will not be accepted unless signed in ink (not typed) in the appropriate space(s ) by an authorized officer or employee of the Bidder.
4. Bids must be submitted on or before the Closing Date. Any Bids received after the Closing Date shall be returned, unopened, t o the Bidder, provided the request number, opening date, and Bidder's return address are on the envelope.
5. Bids may be withdrawn prior to the Bid Closing Date by writing to the Purchasing Division.
6. Telegraphic, tel ephonic, electronic and facsimile Bids an d withdrawal requests will not be accepted.
7. Prices submitted ar e considered acc urate for a period of ni nety (90) days and cannot be withdrawn after the Closing Date.
8. All Bids are the property of the City after submission.
9. City is not responsible for Bid errors and omissions.
10. Bids should be prepared in a straightfor ward, concise manner. Information provi ded which was not specifically requested will be considered only in City’s discretion.
11. A written amendment or addenda issued by City’s Purchasing Division is the only method which should be relied on with respect to changes to the RFB. Respondent is responsible to contact City’s Purchasing Division prior to submitting a Bid to determine if any amendments were made to the RFB.
12. Any contract res ulting f rom the RFB will be jointly administered by the City’s Purchasin g Division, and the Department requesting Bids.
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13. Prior to conducting b usiness in the City, a Business Tax Certificate (license) must be obtained. Call (559) 713-4326 for more information.
14. Bidder shall provide insurance as required by law and as indicated in the proposed contract.
15. Bidder shall m aintain a ll person nel files an d payroll records for empl oyees used to implement the proposed contract.
16. Bidder shall withhold, pay and report all tax es and issue W -2 forms at the end of each calendar year for employees used to implement the proposed contract.
17. Pursuant to the City’s C harter, all other things b eing equal, tie Bids shall be awarded to a local merchant to the extent quality and pr ices are equal. If neither is a local vendor, the Bid shall be awarded by the flip of a c oin by the Purchasing Division in the presence of at least one witness.
18. The Cit y may make such investigation of the Bidder and inform ation in the Bid as it determines necess ary. This may include the collection of criminal history informat ion, contractual and business associations and practices, employment histories and reputation.
19. All California agencies may purchase o ff the Proposal submitted at the same prices, terms, conditions and specifications. The City of Visalia shall incur no responsibility in connection with another agency’s purchase.
20. Each Bidder will be required to submit Certifications, Affidavits, Bid G uarantees, Assurances, Statements and Questionnaires which are attached in Exhibit “B”.
21. The quantities given on the Bid Proposal form and any related contra ct docume nts are approximate only. They are given as a basis for comparison of Bids. The City of Visalia does not, expressly or impliedly ag ree that the actual amount of work will correspond therewith but reserves the right to increase or decrease the am ount of any class or portion of work, or to omit portion of the work, as the City deems necessary or advisable, at the prices Bid.
22. Bidders shall satisfy themselves by personal examination of the work site, speci fications, plans, and other contract doc uments, and by any other means as they believe necessa ry, as to the actual physical conditions , requirements, a nd difficulties under which the project must be performed. The submission of a Bid shall be conclusive e vidence that th e Bidder has investigated , and is satisfied as to the conditions encountered, a s to the character, quality, and quantities of work to be performed, and the materials to be furnished, and as to the requirements of the RFB and the City. No al lowance shall s ubsequently be made because of lack of such examination or knowledge.
23. All Bidders are required to make a Bid on the complete Bid Form (Exhibit “A”) . Contractor may be required to submit Proposals on alternate items. The Cit y reserve s the right to award the contract based on the lowest combination or combinations of Proposal items and alternate proposed items.
24. No mention sh all be made in the Proposal of sales ta x, use tax or any other tax, as all amounts Bid will be deemed and held to include any such taxes, which may be applicable.
25. Only one Bid may be submitted as a “ Prime Contractor” for the same wor k by any firm, individual, partnership, corporat ion or combination thereof. A Contractor submitting a Bid as a Prime Contractor may not also submit sub-Bids to other competing Prime Contractors.
Reasonable grounds for believing that any individual, firm, partnership, cor poration or combination thereof is interested in more than one Proposal for the work contemplated will cause the rejecti on of all Proposals in which such individual, firm, p artnership, corporation 155
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or combination thereof is interested. A C ontractor who is not submitting a Bid as a Prime Contractor may submit any number of sub-Bids to competing Prime Contractors.
26. The C ity of Visalia is not lia ble for a ny costs incurred b y Bidder in responding to this Request for Bid.
XI. POST AWARD RESPONSIBILITIES
1. Written Contract with City . A written agreement in a form similar to that attached to this Request for Bid as Exhibit “C” with Attachments 1 -2 must be entered into between the City and the Contractor to whom the project is awarded. The Agreement forms the basis for the contractual obligation between the parties regarding the project. A contract will be provided with the Notice of Award and must be executed and returned to City within ten (10) working days of the date of award notification unless otherwise agreed.
2. Post-Award Responsib ilities. Upon execution of the Agreement between the City and the Contractor, the Contr actor shall immediately report a ll changes in its Art icles of Incorporation, By-Laws, or Tax-Exempt status to the City.
3. Insurance. Contractor shall obtain and maintai n the minimum insurance coverage outlined Exhibit “C” , Attachment 2. Contractor shall p rovide evidence of such insurance to City’ s Purchasing Division prior to commencement of work on the project.
Upon determination by the City that a contract has been entered and Contractor has provided al l of the information th at it is required t o provide p ursuant to this RFB, City will issue, in writing, a notice to proceed on the project to Contractor.
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BIDDING AGENCY: _________________
EXHIBIT “A”
BID FORM
RFB NO. 21-22-43
Project: REBUILD AND REPAIR KSB INFLUENT PUMP AND MOTOR
TO: THE CITY OF VISALIA PURCHASING DIVISION:
In compliance with the City’s Notice Inviting Sealed Bids No. 21-22-43 dated: __________, the undersigned BIDDER hereby prop oses to furnish all mat erials, equipment, tools, labor appurtenances and incidentals required for th e above stated project as s et forth in the RFB, including all Exhibits and related contract documents therefore, and to perform all work in the manner and time prescribed therein.
BIDDER declares that thi s proposal is based upon careful examination of the work site, Instructions to BIDDERs, and the contract requirements. If this proposal is accepted for award, BIDDER agrees to enter into a contra ct with CIT Y at the unit an d/or lu mp sum prices set forth in the following Bid Schedule.
BIDDER understands th at failure to enter into a contract in the time and manner prescribed will result in forfeiture to the City of the Bid Guarantee accompanying this proposal.
BIDDER underst ands th at a b id is required for t he entire work and that final compensation under th e contract will be based up on the actual quantities of work satisfactorily completed. It is agreed that the unit and/or lump sum prices bid incl ude all app urtenant expense s, taxe s, royalties and fees. In the case of discrepancies in amounts bid, unit prices shall govern over extended amounts.
BIDDER hereby agrees to execute a contract and provide bonds within ten (10) working days, or such further time as may be allowed in writing by the Purchasing Division, after receiving notification of the acceptanc e of this Bid, and it is he reby mutually understood and agreed that in case the BIDDER does not, the accompanying Bid Guarantee shall be forfeite d to the Ci ty of Visalia as liquidated d amages, and said Purchasing Division may proceed to award the contract to others.
BIDDER agrees t o commence the work within ten (10) calendar days after the effective date of the Notice to Proceed.
BIDDER further declar es that he/she has not eit her directly or indirectly entered into any agreement, participated in any collusion, or otherwise taken any action in restrain t of free competitive biddi ng in connection with said bid.
Bid Award shall be based on the lowest Total Bid Amount. The quantities given on the Bid Proposal form and any related contract documents are estimates only. They are given as a bas is for comparison of Bids.
The City of V isalia does not expressly or imp liedly agree that the act ual amount of w ork will correspond therewith and reserves the right to i ncrease or d ecrease the a mount of an y class or portio n of work, or to omit portion of the work, as the City deems necessary or advisable, at the prices Bid.
Project Description: Rebuild and Repair KSB Influent
Pump and Motor as described in RFB 21-22-43
KSB Influent Pump & Cost Per Item Quantity Total Cost (AxB) 157
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Motor Horse-Power (A) (B) (includes all labor, taxes,
surcharges, and pickup/delivery
charges)
82 HP $ _____________
2 $ _______________________
122 HP $ _____________
1 $ _______________________
110 HP $ _____________
3 $ _______________________
TOTAL BID AMOUNT $ _______________________
In the case of discrepancy in amounts bid, unit pricing/cost per item shall prevail over extended amounts.
Bid Prices shall include all labor, taxes, surcha rges, and all other costs associated with fulfilling the terms of this contract.
BIDDER has read and hereby agrees to the conditions stated in this proposal by affixing his/her signature on bid form.
(1) _______________________________________________________________________________________________________ Bidding Agency
(2) _______________________________________________________________________________________________________ Corporation, Partner, Joint Venture
(3) _______________________________________________________________________________________________________ Business Address City State Zip Code
_______________________________________________________________________________________________________ Telephone Number Fax Number Email Address
(4) _______________________________________________________________________________________________________ Signature of Authorized Person (Date)
_______________________________________________________________________________________________________ Type or Print Authorized Person’s Name
PLEASE SEE THE FOLLOWING INSTRUCTIONS REGARDING SIGNATURE
(1) If the BIDDER is an indiv idual, enter name here in style used in business; if a joint venture, exact name of entities joining in the venture; if a partn ership, the co rrect trad e style of the partnership; if a corporation, the exact name of the corporation.
(2) If BIDDER is other than an individual , identify here its character, i .e., joint venture, partnership, corporation, including the state of incorpor ation. If BID DER is an individual operating under a trade name, state “an individual dba (trade name in full)”.
(3) State on this line, the address to which all communications a nd notices regarding the Bid Proposal, and any contract awarded thereunder, are to be addressed.
(4) If BIDDER is a joint venture, signature must be b y one of the joint venturers, and if one or both of the joint venturers is a partnership or a corporation , each participating partnership must sign by a general partner, and each cor poration by an authorized officer or employee; if a partnership, by a gene ral partner; 158
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if a corporation , by an authorized officer or employee. The title of the person signing mus t appear after his/her signature. Where BIDDER is a partnership or corporati on, the names of all other general partners, or the president or secretary of the corporation and their business addresses must be shown below.
_________________________________________________________________________________________________________ _________________________________________________________________________________________________________ _________________________________________________________________________________________________________ _________________________________________________________________________________________________________ _________________________________________________________________________________________________________ Note: All names must be typewritten under written signature. All Addresses must be complete with street number, city, state and zip code.
CONTRACTOR’S LICENSE INFORMATION:
STATE CONTRACTOR’S LIC. CLASS: _________________ # _____________________________ EXP. DATE: ______________________ STATE D.I.R. REGISTRATION #______________________________________________________ FEDERAL TAX I.D. #______________________________________
CITY OF VISALIA BUSINESS TAX CERTIFIC ATE #__________________________________ A City Busine ss Tax Certificate (license) is not required to su bmit a bid; however, vendor is required to obtai n a City Tax Certificate prior to commencem ent of work. Please contact the Business Tax Division with any questions at (559) 713-4326.
CONTRACTOR’S REFERENC ES: The following are the names, addresses, and telephon e numbers for a t least three (3) public agencies for which BIDDER has perf ormed work similar in size and scope within the past two (2) years.
REFERENCE 1
NAME OF AGENCY: __________________________________________________ CONTACT PERSON: _____________________
AGENCY ADDRESS: _________________________________________________ PHONE #: _______________________________
REFERENCE 2
NAME OF AGENCY: __________________________________________________ CONTACT PERSON: ____________________
AGENCY ADDRESS: _________________________________________________ PHONE #: _______________________________
REFERENCE 3
NAME OF AGENCY: __________________________________________________ CONTACT PERSON: _____________________
AGENCY ADDRESS: _________________________________________________ PHONE #: _______________________________
DESIGNATION OF SURETIES
The following are the names, addresses, and telephone num bers for all brokers and sur eties from whom BIDDER intends to procure insurance.
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1) COMPANY NAME: ______________________________________ TYPE OF INSURANCE: _______________________
ADDRESS: _____________________________________________ TELEPHONE# _______________________________
2) COMPANY NAME: ______________________________________ TYPE OF INSURANCE: _______________________
ADDRESS: _____________________________________________ TELEPHONE#_______________________________
3) COMPANY NAME: _____________________________________ TYPE OF INSURANCE: _______________________
ADDRESS: _____________________________________________ TELEPHONE#_______________________________
BIDDING AGENCY: ____________________________
SUBCONTRACTOR LISTING
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The undersigned hereby designates below f or the project, opposite various portions of the work, the names and locations of the places of business of each subcontractor who will perform work o r labor in an amount in excess of one -half of one percent (1/2 of 1%) of the of the total bid. All work n ot listed bel ow shall be performed by the undersigned BIDDER. It is underst ood that the BIDDER, if awarded the contract, shall not substitute any sub contractor in place of the subcontractors herein designated without the approval of the Project Manager.
SUBCONTRACTOR INFORMATION & TRADE CLASSIFICATION (CIRCLE ALL THAT APPLY)
1. Subcontractor Name:
Performing
_____% of
project work
Asbestos
Boilermaker
Bricklayers
Carpenters
Carpet/Linoleum
Cement Mason
Drywall Finisher
Drywall/Lathers
Electricians
Elevator Mechanic
Glaziers
Iron Worker
Laborers
Millwrights
Operating
Engineers
Painters
Pile Drivers
Pipe Trades
Plasterers
Roofers
Sheet Metal
Sound/Comm
Surveyors
Teamster
Tile Worker
Other: _________
Business Address:
Email Address:
CSLB # Expires:
DIR Registration #
2. Subcontractor Name:
Performing
_____% of
project work
Asbestos
Boilermaker
Bricklayers
Carpenters
Carpet/Linoleum
Cement Mason
Drywall Finisher
Drywall/Lathers
Electricians
Elevator Mechanic
Glaziers
Iron Worker
Laborers
Millwrights
Operating
Engineers
Painters
Pile Drivers
Pipe Trades
Plasterers
Roofers
Sheet Metal
Sound/Comm
Surveyors
Teamster
Tile Worker
Other: _________
Business Address:
Email Address:
CSLB # Expires:
DIR Registration #
3. Subcontractor Name:
Performing
_____% of
project work
Asbestos
Boilermaker
Bricklayers
Carpenters
Carpet/Linoleum
Cement Mason
Drywall Finisher
Drywall/Lathers
Electricians
Elevator Mechanic
Glaziers
Iron Worker
Laborers
Millwrights
Operating
Engineers
Painters
Pile Drivers
Pipe Trades
Plasterers
Roofers
Sheet Metal
Sound/Comm
Surveyors
Teamster
Tile Worker
Other: _________
Business Address:
Email Address:
CSLB # Expires:
DIR Registration #
If more space is needed to list additional subcontractor and trade classifications, please list remaining subcontractors on a separate sheet of paper (providing all of the requested information for each subcontractor) and submit with Bid.
Submit with Proposal
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EXHIBIT “B-1”
BIDDER’S STATEMENT ON PREVIOUS CONTRACTS
SUBJECT TO EQUAL EMPLOYMENT OPPORTUNITY CLAUSE
(EXECUTIVE ORDER 11426)
The BIDDER shall complete the following statement by checking the appropriate blanks:
The BIDDE R has _____ has not _____ participated in a previous con tract subject to the Equal Employ ment Opportunity Clause prescribed by Executive Order 11246, as amended, of September 24, 1965.
The BIDDER has _____ has not _____ submitted all c ompliance reports in connection with any such contract due under the applica ble filing requirements; and representations indicatin g submission of required compliance reports signed by proposed subBIDDERs will be awarded prior to award of subcontracts.
If the BIDDER has partic ipated in previous contracts subject to the Equal Employment Opportunity Clause and has not submitted compliance reports due under applicable filing requirements, the BIDDER shall submit a co mpliance report o n Sta ndard Fo rm 100, “ Employee Information Repor t EEO -I” p rior to award of the contract.
Note: Failure to complete the blanks may be grounds for rejecting the bid.
Company: ______________________________________________
Business Address: ______________________________________________
Signature: ______________________________________________
Name of Signing Official: ______________________________________________
Title of Signing Official: ______________________________________________
Date: ______________________________________________
Company Seal:
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EXHIBIT “B-2”
EQUAL EMPLOYMENT OPPORTUNITY COMPLIANCE CERTIFICATE
(EXECUTIVE ORDER 11246)
Equal Opportunity Clause
Unless exempted by rules, regulat ions or orders of the Secretary of Labor issued pursuant to Executive Orders 10925, 11114 or Section 204 of Executiv e Order 11246 of September 24, 1965, during the performance of each contract with the City of Visalia, the BIDDER agrees as follows:
1. The BIDDER will not d iscriminate against any employee or applicant f or employment because of race, color, religion, gen der, national origin or political aff iliation. The BIDDER will take affir mative action to ensure that applicants are employed, and that emp loyees are treated during empl oyment, wi thout regard to their rac e, color, religion, gender, national origin or poli tical affiliation. Such action shall include, but not be limited to, the following:
employment upgrading, demotion or transfer, recruitment or recruitment advertising, layoff or termination, rates of pay or other f orms of compensation, and selection for t raining, including apprenticeship. T he BIDDER agrees to p ost in conspicuous places, available to employees and applicants for employment, n otices to be provi ded by the c ontracting officer setting forth the provisions of this nondiscrimination clause.
2. The BIDDER will, in all solicitations or advertisements fo r employees, pla ced by or on behalf of the BIDDER, state that all qualified applic ants will receive consideration for empl oyment without regard to race, colo r, religion, gender, national origin or political affiliation.
3. The BIDDER will send to each lab or union or repr esentative of workers w ith which he has a collective bargaining agreement or other c ontract or u nderstanding, a notice to be provid ed by the agency contracting officer, advising the labor union or the workers’ represent ative of the BIDDER’s commitments under Section 202 of Execu tive Order 11246 of September 24, 1965, and shall post copies of the notice on conspicuous places available to employees and applicants for employment.
4. The BIDDER will comply with all provisi ons of Executive Orde r 11246 of Septe mber 24, 1965, and the rules, regulations and relevancy orders of the Secretary of Labor.
5. The BIDDER will furnish all informat ion and re ports required by Executive Order 11246 o f September 24, 1965, and by the rule s, regulations and relevant orders of the Secretary of Labor, or pursuant thereto, and will permit access to his books, r ecords and a ccounts by the contracting agency a nd the Sec retary of Labor for purposes of investigation to ascertain compliance with such rules, regulations and orders.
6. In the event of the BI DDER’s non-compliance with the non -discrimination clauses of this subcontract or with any of such rules, reg ulations or orders, this subcontract may be cancele d, terminated or suspended, in whole, or in part and the B IDDER may be dec lared ineligible for fu rther government contracts in accordance wi th the procedures authorized i n accordan ce with Executive Order 1 1246 of Se ptember 24, 1965, and such other sanction s may be imposed and remedies invoked as provided in Executive Order 11246 of September 24, 1965, or by rule, regulation or order of the Secretary of Labor, or otherwise provided by law.
7. The BIDDER wil l include the provisions of Paragraphs (1) through (7) in every subcontract or purchase order unless exempted by rules, regulations or orders of the Secretary of Labor issued pursuant to Sect ion 204 of Executive Order 11246 of Sept ember 24, 1965, so that s uch provisions will be binding upon each SUBBIDDER or vendor. The BIDDER will take such action with respect to any subcontract or purchase order as the contracting agency may direct as a means of enforcing such provisions including sanctions for non-compliance. Provided, however, that in the event the BIDDER becomes involved in, or is threa tened with litigation with a SUBBIDDE R or vendor as a result of such direction by the contracting agenc y, the BIDDER may request the United States to enter into such li tigation to protect the interest of the United States.
Company Name: ____________________________________________________________________________________________________ Business Address: __________________________________________________________________________________________________ Signature: _________________________________________________________________ Date: __________________________________ Name of Signing Official (Print or Type): _____________________________________________________________________________ Title of Signing Official: ______________________________________________ Company Seal:
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EXHIBIT “B-3”
CERTIFICATE OF NONSEGREGATED FACILITIES
(BIDDERS/SUBCONTRACTORS)
1. “Segregated facilities,” as used in this provis ion, means any waiting rooms, work areas , rest rooms and w ash rooms, restaurants and other eating areas, time clocks, locker rooms and other storage or dressing areas, parking lots, drinking fountains, recreation or enter tainment areas , transportation, and housing facilities provided for employe es, that are segre gated by explicit directive or are in fact segregat ed on the basis of race, color, religion, or national origin, because of habit, local custom, or otherwise.
2. By the submissi on of a bid, the BIDD ER certifies that it does not and will n ot maintain or pro vide for its employees any segregated facilities at any of its establishments, and that it does not and will not permit its employees to perform their serv ices at any location u nder its control wher e segregated facilities are maintained. The BIDDER agrees that a breach of this cert ification is a violation of the Equal Opportunity clause in the contract.
3. By submission of the bid, the BIDDER further agree s that ( except where i t has obtained identi cal certifications from proposed SUBCONTRACTORs for specific time periods) it will:
(a) Obtain identical certifications from proposed SUBCONTRACTORs before the award of subcontracts under which the SUB-BIDDER will be subject to the Equal Opportunity clause; (b) Retain such certifications in its files; and
(c) Forward this certification and the following notice to the proposed SUBCONTRACTORs:
NOTICE OF PROSPECTIVE SUBCONTRACTORS OF REQUIREMENT
FOR CERTIFICATION OF NONSEGREGATED FACILITIES
A certificate of Nonsegregated Facilities must be submitted be fore the award of a subcontract under which the SUBCONTRACTOR will be subject to the equal Opportunity clause. The certi fication may be submitted either for each SUBCONTRAC TOR for all subcontracts during a period (i .e., quarterly, semi-annually, or annually).
4. By commencing performance of the Contract work, the selected BIDDER certifies to the Nonsegregated Facilities provisions above.
Company: ____________________________________________________________________________
Business Address: ____________________________________________________________________________
Signature: _______________________________________________ Date: ________________________________
Name of Signing Official (Print or Type) :________________________________ Title of Signing Official: __________________________________________ Company Seal:
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EXHIBIT “B-4”
NON-COLLUSION AFFIDAVIT
STATE OF CALIFORNIA )
) ss
CITY OF VISALIA )
_________________________, being first duly sworn, deposes and says that he or she is _________ of __________ the party making the foregoing Bid; that the Bid is not made in th e interest of, or on behalf of, any undisclosed person, par tnership, company, association, organization, or corporation; tha t the Bid is genuine an d not collusive or sham; that the BIDDER has not directly or indirectly induced or solicited any other BIDDER to put in a false or sham Bid, and has not direct ly or ind irectly colluded, conspired, connived, or agreed with any BIDDER or anyone else to put i n a sham Bi d, or that anyone shall refrain from Bidding; th at the BIDDER has not in any manner, directly or i ndirectly, sought by agreement, communication, or conference with a nyone to fix the Bid price of the BIDDER or any other BID DER, or to fix any over head, profit, or cost elemen t of the Bid price, or of that of any other BIDDER, or to secure any advantage against the public body awarding the contract of anyone interested in the proposed contract; that all statements contained in the Bid are true; and, further, that the BIDDER has not, directly or indirectly, submitted his or her Bid price or any breakdown thereof, or the contents thereof, or divulged informa tion or d ata rela tive thereto, or paid, and will not pay, any fee to any corporation, partnership, company association, organization, bid depository, or to any member or agent ther eof to effectuate a collusive or sham Bid.
Company: ______________________________________________ Business Address: ______________________________________________ Signature: ______________________________________________ Name of Signing Official: ______________________________________________ Title of Signing Official: ______________________________________________ Date: ______________________________________________
Company Seal:
State of California
County of ________________________
On this __________ day of _______________before me, ___________________________________________, a Notary Public, personally appeared _________________ ___________________________,who proved to me on the basis of satisfactory evidence to be the person (s) whose name (s) is/are subscribed to the within instrument and acknowledged to me that he/ she/they executed the same in his/her /their authorized capacity(ies), and that by his/he r/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing p aragraph is true and correct
WITNESS my hand and official seal.
Signature __________________________________ (Seal)
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. 165
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EXHIBIT “B-5”
WORKERS’ COMPENSATION INSURANCE CERTIFICATE
(CALIF. LABOR CODE § 3700)
STATE OF CALIFORNIA )
) ss
CITY OF VISALIA )
I am aware of the provisions of Section 3700 of the Labor Code which requires every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the work under this contract.
Company: ______________________________________________
Business Address: ______________________________________________
Signature: ______________________________________________
Name of Signing Official: ______________________________________________
Title of Signing Official: ______________________________________________
Date: ______________________________________________
Company Seal:
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EXHIBIT “B-6”
AMERICANS WITH DISABILITIES ACT COMPLIANCE CERTIFICATE
By submission of a bid, the BIDDER c ertifies it will comply with the Americans with Disabilities Act, 42 U.S.C., 12101 et. seq., and w ill maintain compliance throughout the life of thi s Contract. By commencing performance of the Contract work, the selected BIDDER cert ifies to the Americans with Disabil ities Act compliance.
Company: ______________________________________________
Business Address: ______________________________________________
Signature: ______________________________________________
Name of Signing Official: ______________________________________________
Title of Signing Official: ______________________________________________
Date: ______________________________________________
Company Seal:
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EXHIBIT “B-7”
CITY OF VISALIA, CA
Ownership Disclosure for Contractors and Consultants
NAMES OF PRINCIPALS, PARTNERS, AND/OR TRUSTEES:
Firm Name: _________________________________________________________ Firm Address: _________________________________________________________
List the names of all principals, partners, and/ or trustees. For co rporations provide names o f officers, directors and all stockholders owning more than 10% equity interest in corporation:
Submitted by: Name __________________________________________________________ Date __________________________________________________________
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EXHIBIT “B-8”
STATE OF CALIFORNIA
DRUG-FREE WORKPLACE CERTIFICATION
STD.21 (REV.12-93)
I, the official named below, hereby swear that I am duly authorized legally to bind the contractor or grant recipient to the certification described below. I am fully aware that this certification, executed on the date below, is made under penalty of perjury under the laws of the State of California.
CONTRACTOR/BIDDER FIRM NAME
FEDERAL ID NUMBER
BY (Authorized Signature)
DATE EXECUTED
PRINTED NAME OF PERSON SIGNING TELEPHONE NUMBER (Include Area Code)
( )
TITLE
CONTRACTOR/BIDDER FIRM’S MAILING ADDRESS
The contractor or grant recipient named above hereby certifies compliance with Government Code Section 8355 in matters relating to providing a drug-free workplace. The above-named contractor or grant recipient will:
1. Publish a stat ement notifying employees that unlawful manufa cture, distribution, dispensation, possession, or use of a contr olled substance i s prohibited and specifying actio ns to be taken again st employees for violations, as required by Government Code Section 8355(a).
2. Establish a Drug-Free Awareness Program as required by Government Code Section 8355(b), to inform employees about all of the following:
(a) The dangers of drug abuse in the workplace,
(b) The person’s or organization’s policy of maintaining a drug-free workplace, (c) Any available counseling, rehabilitation and employee assistance programs, and (d) Penalties that may be imposed upon employees for drug abuse violations.
3. Provide as required by Government Code Section 8355©, that every employee who works on the pro posed contract or grant:
(a) Will receive a copy of the company’s drug-free workplace policy statement, and (b) Will agree to abide by the terms of the company’s statement as a condition of employment on the contract or grant.
4. At the election o f the contractor or grantee, from and after the “Date Ex ecuted” and until ____________ (NOT TO EXCEED 36 MONTHS), the state will regard this certificate as valid for all contracts or grants entered into between the contractor or grantee and this state ag ency without requiring the contra ctor or grantee to prov ide a new an d individual certificate for each contract or grant. If the contractor or grantee elects to fill in th e blank date, th en the terms and conditions of this certificate shall have the same force, mea ning effect and enforce ability as if a certificate were s eparately, specifically, and individually provided for each contract o r grant between the contractor or grantee and this state agency.
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EXHIBIT “C”
SAMPLE PROJECT AGREEMENT
RFB 21-22-43
REBUILD AND REPAIR KSB INFLUENT PUMP AND MOTOR
This Agreement, entered into and effective this ______ __ day of _____________ ___, 2022 [“Effective Date”], by and between the City of Visalia, hereinafter referre d to as th e “CITY”, and _________ ___________________ hereinafter referred to as the “CONTRACTOR”, “BIDDER”, or “SUBRECIPIENT”.
R E C I T A L S
WHEREAS, CONTRACTOR is an ____________________ (insert individual or entity type) with a p rimary business address of ____________________ and SSN or EIN: ____________________; and
WHEREAS, CITY is a municipal corporation and Charter Law City; and
WHEREAS, CITY desires completion of the __________ ___ Project, which was let to bid on __________ _ as evidenced by Bid No. __________ (the “Project”); and
WHEREAS, City of Visalia reviewed and evaluated res ponses to the B id and d etermined to award a contract to CONTRACTOR for the Project; and
WHEREAS, CONTRACTOR represents it is licensed, qualified and willing to comp lete the Project pursuant to terms and conditions of this Agreement.
NOW, THEREFORE, CITY and CONTRACTOR agree as follows:
1. TERM:
The term of this Agreement shall commenc e on the Effective Date and expire upon completion of all obligations of the parties, unless ea rlier terminated by the parties. The indemnification and defense provisions sha ll survive expi ration and termi nation. S uspension or termination of this Agreeme nt may occur if CONTRACTOR materially fails to comply with any term of the award. Additionally, this Agreement may be terminated for convenience . In the event of termination or e xpiration of this Agreement, CONTRACTOR shall transfer to CITY any funds and /or accounts recei vable on hand attributable to the use of CITY funds.
2. ATTACHMENTS INCORPORATED:
The following are attachments for this Agreement. Said attachments are incor porated into this Agreement as if included in full in the body:
ATTACHMENT NO. DESCRIPTION OF ATTACHMENT
Attachment 1 General Contract Provisions
Attachment 2 Insurance Requirements
Attachment 3 City of Visalia Bid 21-22-43, Rebuild/Repair KSB Influent Pump & Motor Attachment 4 CONTRACTOR’s proposal in response to Bid No. 21-22-43
3. CONTRACTOR SCOPE OF SERVICES and COMMITMENTS*:
CONTRACTOR shal l provide the f ollowing s ervices for the stated compensation on or before the stated completion dates (“Scope of Services”):
All work described in Scope of Services in Bid No. 21-22-43 170
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4. CITY COMMITMENTS:
CITY shall perform the following tasks on or before the stated completion dates:
TASK COMPLETION DATE
Pay Contractor as work is completed and invoiced As requested by Contractor
5. COMPENSATION:
CITY shall pay CONTRACTOR compensation for services as indicated in Paragraph 4 above; however, CITY shall pay n ot more th an the fol lowing amount as total compensation under this Agreement, unless otherwise agreed in writing. Such sum shall be expended and paid by CITY on a reimbursement bas is for services actually performed based on invoices, receipts, time sheets and similar documents presented by CONTRACTOR to CITY.
6. CONTRACT PRICE ADJUSTMENTS:
All prices shall be firm and fixed for twelv e (12 ) months from the annual anniversary date of t he agreement. Prices may be adjusted annually at time of co ntract renewal and upon mutual agreement of the parties. It will be th e responsibility of the con tractor to request a price adjustment and to prov ide all documentation necessary to support this r equest. The request for price adjustment must be submitted to the Project Manager within the thirty (30) calendar day period prior to the annual anniversary date of the agreement as specified in General Conditions of RFB 21-22-43.
The unit prices for the ensuing contracts shall be based on the movement of the unadj usted figures of the U.S. Department of Labor Consumer Price Index (CPI) for all Urban Consumers (CPI-U All Cities Average).
The contract unit prices may be changed in an amount equal to the p ercentage of movement for the most recent twelve-month period.
In no instance shall th e pr ice increase exceed 5%. The contract unit pr ice changes as a result of t his formula shall be binding on the contractor for the subsequent contract year. The adjustm ent of the uni t bid price shall not be retroactive and shall apply only to changes incurred after approval.
Total Compensation: $
Source of Funds:
Payment Schedule: Within 30 days from receipt of Contractor’s itemized invoice. 171
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IN WITNESS WHEREOF, this Agreement is executed on the day and year first above written.
CONTRACTOR
Dated: ___________________ By: ______________________________________________________ Authorized Officer: I certify under penalty of perjury under the laws of the State of Cali fornia that I am fully authorized to execute this Agreement for CONTRACTOR in the capacity I ha ve stated, and that such execution is sufficient to bind the CONTRACTOR.
CITY OF VISALIA
Dated: ____________________ By: ______________________________________________________ City Manager
Dated: ____________________ By: ______________________________________________________ City Attorney
Dated: ____________________ By: ______________________________________________________ City of Visalia Risk Manager
Dated: ____________________ By: ______________________________________________________ City of Visalia Project Manager
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Exhibit “C”
Attachment 1
GENERAL CONTRACT PROVISIONS
A. Successors and Assi gns: This Agreement shall be binding upon and shall inure to the be nefit of any successors to or assigns of the parties.
B. Prohibition of Assignment: Neither party shall assign, delegate or transfer their rights and duties in this Agreement without the written consent of the other party.
C. Notices: Notice shall be sufficient hereunder if personally served upon the City Clerk of the CITY or an officer or principal of the CO NTRACTOR, or if sent via the Uni ted States Postal Service, postag e prepaid, addressed as follows:
CITY OF VISALIA CONTRACTOR
707 W. Acequia Ave. _______________________
Visalia, CA 93291 _______________________
Attention: City Clerk Attention: _____________
D. Independent Contractor: It is understood and agreed by the parties herein that CONTRACTOR, in the perfo rmance of this Agreement, shall act as an independent contractor, and ther efore sh all obtain no rights to any fringe benefits that accrue to regular full-time CITY employees.
E. Jurisdiction/Venue/Waiver Of Removal : This Agreement shall be administered and interpreted under the laws of the State of California. Jurisdiction of li tigation arising from this Agreement shall be in Califor nia. Any action brought to int erpret or enforce this Agreement, or any of the terms or conditions hereof, shall be brought in Tulare County, California . The CONTRACTOR hereby expressly waives any right to remove any action to a county other than Tulare County as permitted pursuant to Section 394 of the California Code of Civil Procedure.
F. Integration/Modification: This Agreeme nt an d each of the documen ts and exhibits or attachments referenced herein , which are incorporated by reference, rep resents the en tire understanding of the parti es as to t hose matters contained herein. No prior ora l or written understanding shall be of an y force or effect with respect to those matters covered hereunder. This Agreement may not be modi fied or altered ex cept in writing signed by the parties, unless otherwise explicitly authorized.
G. Conflict With Law : If any part of this Agreement is found t o be in conflict with appl icable laws, such part shall be inoperative, nul l and vo id insofar as it is in conflict wi th said law, b ut the remainder of the Agreement shall be in full force and effect.
H. Indemnification: The CONTRACTOR waives any and all clai ms an d recourse against th e CITY, including the right of contribution of l oss or damage to person or property arising from, growing out of, or in any way connect ed with or incidental to the CONT RACTOR’s performance of this Agreement, except claims arising from the concurrent or sol e negligence of the CITY or its officers, agents or empl oyees. The CONT RACTOR will indemn ify, hold harm less, an d defend (at CITY’s option) the CITY against any and all claims, demands, damages, costs, expenses, or liability arisi ng out of the CONTRACTOR’s performance of this Agreement except for liabil ity aris ing out of the concurrent or sole negligence of the CITY or its officers, agents, or employees.
I. Guarantees and Warranties:
1. IN G ENERAL: All guarantees and warranties sp ecifically called for by t he specifications and/or this Agreement shall expressly run to the benefit of the CITY.
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2. ONE YEAR GUA RANTEE: Besides guarantees re quired elsewhere, CONTRACTOR shal l and hereby does guarantee the project work for a period of o ne year after the date of acceptance by CITY.
3. WARRANTIES: Warranties r equired by the Invitati on to Bid or this A greement shal l commence on the date of accep tance of t he work by CITY, unless otherwise provided in a Certificate of Substantial Completion.
CONTRACTOR warrants tha t the materials and equipment furnished under the Agreement will be new and of recent manuf acturer unless otherwise specified, and that all work will be of good quality, free from faults and defects, and in conformance with the Ag reement. Work that does n ot conform may be considered defective. This war ranty ex cludes remedy f or damage or defect caused by ab use, mod ifications not executed by the CO NTRACTOR, improper or i nsufficient maintenanc e, improper operation, or normal wear an d tear under normal usage.
CONTRACTOR warrants that title to all work covered by an application for payment will pass to the CITY either by incorporation in the construction or upon the receipt of payment by the CONTRACTOR, whichever occurs first, free and clear of all liens.
CONTRACTOR warrants and guarantees that title to all work, m aterials, and e quipment covered by any application for payment, whether incorporated in the project or not, will pass to CITY no later than the time of payment free and clear of all liens.
No materi als or supplies for the project shall be purchase d by the CONTRACTOR or SUBCONTRACTOR subje ct to any mor tgage or under a condition of s ale contract or other agreement by which an interest is retained by the seller. CONTRACTOR warrants that it has good title to all materials and supplies used by it in the project, free from all liens.
CONTRACTOR shall ind emnify and hold CITY harmless f rom all cl aims growing out of the lawful demands of SUB CONTRACTORS, laborers, workers, mechanic s, ma terial persons, and f urnishers of machinery and parts thereof, equipme nt, powe r tools, and al l supplies, incurred in furthera nce of t he performance of this Agreement. CONTRACTOR shall, at CITY’s request, furnis h satisfactory evidence that all obligat ions of the nature here an d above designated have been paid, discharged, or waived. If CONTRACTOR fails to do so, then CITY may, after having served written not ice on the CONTRACTOR, either pay directly unpaid bills , of which the CITY has written notice, or wi thhold from the CONTR ACTOR’s unpaid compensation a sum of money deemed reasonably sufficient to pay any and all such lawful c laims un til satisfactory eviden ce is furn ished that all liabilit ies have been fully discharged where upon payment to the CONTR ACTOR shall be resumed, in accordance of the terms of this Agreement, but i n no eve nt shall the pr ovisions of this se ntence be construed to impose any obligation s on the C ITY to either the CONTR ACTOR or its surety.
In paying any unpaid bills of the CONTRA CTOR, the CITY shall be de emed the agent of the CONTRACTOR and any payment so made by the CITY shall be considered as payment made under the contract by the CITY to the CONTRACTOR and the CITY s hall not be liable to the CONTRACTOR for any such payments made in good faith.
Any defective work that is either corrected or replaced s hall be warrantied and guaranteed for a period of one year from the date of such correction or replacement.
J. Attorney’s Fees: In the even t either party commences any action, arb itration or legal proceedi ngs for the enforcement of this Agreement, the pr evailing party, as dete rmined by the court or arbitrator, shall be entitled to recover y of its a ttorney’s fees and cour t costs incurred in th e action brought thereon.
K. Headings: Section headings are prov ided for organizational purposes only and do not in any manner affect the scope or intent of the provisions thereunder. 174
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L. Firearms Prohibited: Guns may not be carried by contractors /vendors/consultants while working on City of Visalia premises without the expressed written approval of a City of Visal ia Department Head, or an exemption in the contract. If a contractor/vendor/ consultant is caught carrying a gun, without City permission, their contract will be terminated.
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Exhibit “C”
Attachment 2
INSURANCE REQUIREMENTS
1. CONTRACTOR Insurance. CONTRACTOR, at its sole cost and expense, for the full term of this Agreement (and any extensions thereof), shall obtain and maintain at a minimum compliance with all o f the following insurance coverage(s) and requirements. Such insurance coverag e shall be prima ry coverage as respects CITY and any insurance or se lf-insurance maintained by CITY s hall be in ex cess of CONTRACTOR’s insurance coverage and shall not contribute to it.
2. Subcontractor(s’) Insurance. If CONTRACTOR uti lizes one or more subc ontractors in th e performance of this Agre ement, CONTRACTOR shall ob tain and maintain indepe ndent ins urance as to each subcontractor or otherwise provide evidence of insurance c overage fo r each subco ntractor eq uivalent to that required of CONTRACTOR in this Agreement.
3. Types of Insurance and Minim um Limits . The following types of insurance and m inimum li mits are required providing at least the following minimum coverage and limits of liability:
a. Worker’s Compensation written in accord ance with the laws of the State of Cal ifornia providing coverage for any and all employees of CONT RACTOR in the mi nimum sta tutorily requ ired coverage amounts;
b. Automobile Liability Insurance for each of CONTRA CTOR’s vehic les used in the performance of this Agreement, including owned, non -owned (e.g. owned by CONTRACTOR ’s employees or contractors), leas ed or hired vehi cles, in the minimum a mount of $1,000,000 combined single limit per occurrence for bo dily injury and property damage. This insurance coverage shall not be required if vehicle used by CONTRACTOR is not a material part of performance of this Agreement.
c. Comprehensive or Commerc ial General Liability Insurance coverage in the minimum amount of $1,000,000 combined single limit, including coverage for:
(1) bodily injury
(2) personal injury
(3) broad form property damage
(4) contractual liability
(5) cross-liability
(6) products and completed operations liability
4. Other Insurance Provisions.
If any insurance coverage required in this A greement is provided on a “Claims Made” rath er than “Occurrence” form, CONTRACTOR agrees to maintain the required coverage f or a period of three (3) years after the expiration of this Agreement (hereinafte r “post agr eement cove rage”) and any extensions thereof. CONTRACTOR may maintain t he required post agreement coverage by renewal or purchase of prior acts or tail coverage . This provision is contingent up on post agreement coverage being both available and reasonably affordable in relation to the coverage provided during the term of this Agreement. For purposes of interpreting this requirement, a cost not exceeding 100% of the last annual policy premium du ring the term of this Agreement in order to pur chase pri or acts or tail coverage for post agreement coverage shall be deemed to be reasonable.
5. Endorsements.
All r equired Automobile and Comprehensive or Commercial G eneral L iability Insurance shall be endorsed to contain the following clauses:
a. The City of Visalia, its offic ers, agents, employee s, representatives, and volunteers are added as additional insureds as re spects operations and activities of, or on behalf of the named insured, performed under contract with the City of Visalia.
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b. It is agreed that any insurance maintained by the City of Vi salia shall apply in excess of and not contribute with insurance provided by this policy.
c. This insurance shall not be cancel ed, limi ted in scope or coverage, or non-renewed until after thirty (30) days prior written notice has been g iven to the City Clerk , City of Visalia, 707 W.
Acequia, Visalia, CA, 93291
6. Proof of Coverage.
CONTRACTOR agrees to provide its insurance broke r(s) with a full copy of these insurance provisions and provide CITY on or before t he effective date of this Agreement with Certificate(s) of Insurance for all required coverages. Copies of all the required Endorsements shall be attached to the Certificat e(s) of Insurance or other evidence o f insurance acceptable to the City of Visalia, which shall be provided by CONTRACTOR’s insuran ce company as evidence of the stip ulated coverages. This Proof of Coverage shall then be emailed to : [email protected] or mailed to the City of Visalia at the following address:
City of Visalia
707 W. Acequia
Visalia, CA 93291
Attn: Purchasing Division
177
178
Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 22-0266 Agenda Date: 7/18/2022 Agenda #: 5.
Agenda Item Wording:
Authorize the City Manager to award and enter into a contract with Talley Oil in the amount of $792,462.93 for the construction of the FY 22-23 Reclamite Project (CIP 1410-72000/CP0248-999 & CIP 2730-72000/CP8358- 999).
Deadline for Action: None.
Submitting Department: Administration - CIP Engineering Contact Name and Phone Number:
Casey Chu, Assistant Engineer, [email protected], 713-4491 Frank Senteno, City Engineer, [email protected], 713-4331 Nick Mascia, Assistant City Manager, [email protected], 713-4323 Department Recommendation:
Staff recommends that City Council authorize the City Manager to award and enter into a contract with the lowest responsive bidder, Talley Oil, in the amount of $792,462.93 for the construction of the FY 22-23 Reclamite Project.
Summary:
This project includes the application of Reclamite to various streets identified in the City’s Pavement Management Program. The work will be focused on specific streets located in the Northeast quadrant of the City as shown in the attached map.
This Reclamite project was developed based on the output from the Pavement Management Program. To increase the longevity of the pavement surface, preventative maintenance of streets still in good condition is critical. Therefore, applying Reclamite at this life-stage of the streets is beneficial as it extends the pavement life at a relatively lower cost. Without this preventive maintenance, as streets deteriorate further, future maintenance becomes more extensive and expensive.
Bidding Process:
A formal City bid process was conducted and on June 17, 2022, City staff opened two (2) bids that were submitted for the project. Per the construction bid documents, the apparent low bid was established by the lowest total of the Base Bid (Area A) plus Alternate Bid 1 (Area B). The results are summarized below listed in order from lowest to highest bid.
No. Contractor Location Base Bid + Alt 1
1. Talley Oil, Inc. Madera, CA $792,462.93
2. Intermountain Slurry Seal Reno, NV $1,075,779.40
Talley Oil has submitted the lowest responsive bid and has previously completed the FY 18-19 and FY 19-20 Reclamite Project for the City of Visalia. Staff, who have worked with Talley Oil before, stated they perform quality and timely work. Additionally, the City of Lodi, CA also attests to the contractor’sperformance and Visalia City Council Printed on 7/13/2022Page 1 of 4
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File #: 22-0266 Agenda Date: 7/18/2022 Agenda #: 5.
quality and timely work. Additionally, the City of Lodi, CA also attests to the contractor’sperformance and communicativeness. As a result, staff recommends Talley Oil be awarded the contract.
Background Discussion:
Reclamite is a pavement preventative maintenance technique intended to be used on roadways with good pavement conditions as indicated by a Pavement Condition Index (PCI) of 55 or higher. The Pavement Condition Index is a number assigned to a pavement based on its condition and ranks the pavement on a scale of failed (10 or less), very poor (10-25), poor (25-40), fair (40-55), good (55-70), very good (70-85), and excellent (85-100). This preventative maintenance method extends the pavement life by five or more years at a relatively low cost. However, the procedure must be carefully applied and will require public notification to residents adjacent to the work area to inform them of what to expect during the project.
Many pavement maintenance techniques have been used by the City over the past years. Reclamite has always been an effective and efficient method to prolong a street’spavement condition. As with most different pavement maintenance methods, there is a complexity to the Reclamite process due to the limited access for residents and businesses during construction. Staff believes that if the public is informed of the Reclamite process and the contractor follows all the precautions, this pavement maintenance technique will continue to be successful.
Reclamite consists of the application of an asphalt rejuvenating agent to the pavement. The rejuvenating agent consists of petroleum oils and resins emulsified with water. After the rejuvenating agent penetrates the pavement, a coating of dry sand will be applied to the surface in sufficient amount to absorb excess oil and provide a friction course to prevent skidding. Once the excess oil has been absorbed, the sand is swept.
This Reclamite Project contains 2 separate capital improvement projects to keep fund sources spent in Landscape and Lighting Districts (L&L) separate from regular pavement maintenance (Measure N). See attached map for differentiation of Measure N streets (Area A) and L&L district streets (Area B).
The residents of Visalia passed Measure ‘N’in November of 2016 to increase the City’sability to perform street maintenance as one of its primary objectives.
Fiscal Impact:
This project is funded by Measure N and Landscape and Lighting Districts (L&L). Since L&L District funds can only be used in the respective L&L district, the project is split into two separate CIP’s:
CP0248 - Measure N
CP8358 - L&L
Each L&L District maintains its own fund balance for which any maintenance activity (i.e. landscaping, pavement rehabilitation, etc.) performed within that respective district is charged to. Older assessment districts were not assessed to cover pavement rehabilitation maintenance at the time. In these cases, Measure N Funds are used to cover costs.
The Measure ‘N’Reclamite Project (1410-72000/CP0248-999) has a current budget of $1,200,000. The L&L Reclamite Project (2730-72000/CP8358-999) has a current budget of $252,000.00.
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File #: 22-0266 Agenda Date: 7/18/2022 Agenda #: 5.
Budget Summary: FY 22-23 Reclamite Project, CP0248 (Measure N Fund) Project Budget $1,200,000.00
Estimated Project Costs:
Construction Cost (Base Bid: Area A) $722,192.23
Construction Contingency (10%) $72,219.23
Construction Management (4%) $28,887.69
Construction Inspection (4%) $28,887.69
Geotechnical Testing (2%) $14,443.85
Total Project Cost $866,630.69
Project Budget Surplus (Measure N) $333,369.31
Budget Summary: FY 22-23 Reclamite Project, CP8358 (L&L Fund) Project Budget $252,000.00
Estimated Project Costs:
Construction Cost (Alternative Bid 1: Area B) $70,270.70 Construction Contingency (10%) $7,027.07
Construction Management (4%) $2,810.83
Construction Inspection (4%) $2,810.83
Geotechnical Testing (2%) $1,405.42
Total Project Cost $84,324.85
Project Budget Surplus (L&L Fund) $167,675.15
Note that the L&L Fund balance represents the sum balance of the available pavement maintenance budget of all districts combined; each district’sbalance varies from district to district. Cost expenditures for each district will be tracked and recorded against each district upon project completion. The L&Ls involved have adequate funding for this project.
Unexpended Measure N and L&L funds, following completion of the project, will be returned to their respective fund sources to be used for future pavement preservation projects.
Prior Council Action:
None.
Alternatives:
None recommended.
Recommended Motion (and Alternative Motions if expected):
I move to authorize the City Manager to execute an agreement for RFB 21-22-50 in the amount of $792,462.93 for the construction of the FY 22-23 Reclamite Project to Talley Oil.
Environmental Assessment Status:
None.
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File #: 22-0266 Agenda Date: 7/18/2022 Agenda #: 5.
CEQA Review:
None.
Attachments:
1) Reclamite Project Map
2) Contractor Disclosure Form
3) Bid Summary
Visalia City Council Printed on 7/13/2022Page 4 of 4
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Hwy 198 E Noble Ave
E Houston Ave
E Main St
E Mineral King Ave
Rd 144
W Main St
N Giddings St
N Dinuba Blvd
W Noble Ave
Rd 132
E Goshen Ave
N Cain St
N Lovers Lane
W Houston Ave
W Ferguson Ave
W Sedona Ave
W Murray Ave
Ave 313
W Center Ave
W Kaweah Ave
E St Johns Pkwy
W Mineral King Ave
W Prospect Ave
W Shannon Pkwy
Tower Rd
N Santa Fe St
E Center Ave
N W
illis St
N Floral St
Private St
N Burke St
E Acequia Ave
N Jacob St
N Bridge St
N Highland St
N Ben M
addox W
ay
N Leslie St
N Garden St
W Grove Ave
E School Ave
N Court St
W Robin Ave
Rd 148
N Stevenson St
N M
c Auliff St
N Turner St
N Church St
W Elowin Ave
E Stapp Dr
E Mill Creek Pkwy
N Vista St
N Encina St
N W
est St
W Burrel Ave
S Burke St
W Acequia Ave
E Riggin Ave
NE 1st Ave
N Com
stock StNE 3rd Ave
NE 2nd Ave
W School Ave
W Porter Ave
W Race Ave
N Park St
N M
ooney Blvd
N Conyer St
NW 1st Ave
Pearl St
N Virm
argo St
W Harold Ave
NW 3rd Ave
E Kaweah Ave
Alley
Rd 146
N Elm
St
N Hall St
E Murray Ave
W Crystal Ave
N Irm
a St
N Vista Dr
E Race Ave
E Wren Ave
S M
ooney Blvd
N Fairway St
N Arroyo St
N Liberty St
W Goshen Ave
N St Johns Pkwy
S W
est St
N Locust St
N Quail Dr
NE 4th Ave
E Duran Dr
W Robin Dr
W Corvina Ave
N Rinaldi St
N Enos St
E Vine Ct
S Cain St
W Clinton Ave
W Vine Ave
E Sweet Ave
E Vista Dr
N Velie Ct
E Oak Ave
E Sedona Ave
N Stover St
N Green St
W Sweet Ave
W Perez Ave
W Riggin Ave
S Court St
N Edison St
N Gowdy St
E Douglas Ave
N Tipton St
E Shannon Pkwy
E Harold Ave
Rio Ct
S Arkle St
S Locust St
N Oak Park St
W Dove Dr
N Divisadero St
E Stapp Ct
S Vista St
E Robin Ave
N M
idland St
S Sim
on St
S Dollner St
E Manzanita Dr
N Shady St
W Modoc Ave
S Bridge St
E Roosevelt Ave
E Margalo Ave
N Sol St
N M
anzanita St
E Atkins Ave
S Lovers Lane
E Stapp Ave
N M
aple St
S Dunworth St
N Amador St
W Sunnyview Ave
W Wren Dr
W Payson Ave
N Sol Ct
N Jacob Ct
W Club Dr
W Dove Ave
E Auburn Dr
W Oriole Ave
N Citrus St
E Cecil Ave
S Sol St
W Buena Vista Ave
E Grove Ave
N Todd St
N Tracy St
E Birch Ave
N Palm
St
N M
adera St
W Switzer Ave
E Ferguson Ave
E Sunnyview Ave
N Turner Ct
N Sim
on St
W Babcock Ave
NE 5th Ave
N Canary Dr
E Modoc Ave
E Valley Oaks Dr
W Lark Ave
E Harold Ct
E Delta Ave
N Hall Ct
N Sum
ter St
E Buena Vista Ave
W Olive Ave
N Goddard St
N Dunworth Ct
N Clark St
S Sol Ct
N Citrus Ct
N Rinaldi Ct
N Cotta Ct
S Oakhurst St
W Harold Ct
N Central St
N Herm
osa St
E Sycamore Ave
W Wren Ave
N Shady Ct
N Clay St
N Thom
as St
N Sowell Ct
S Church St
E Riverbend Ct
N River Run St
W Flagstaff Ave
N Elm
Ct
N Edison Ct
N Central Ct
N Bradley St
W Oak Ave
N Dudley St
N Arkle St
N Om
alley St
E Center Ct
E Prospect Ave
E Stewart Ct
E Delta Ct
S Santa Fe St
N M
ora Ct
E Cecil Ct
E Elowin Ct
N Encina Ct
S M
artin St
E Villoy Ave
N Thom
as Ct
E Murray Ct
W Lipson Ct
N Grand Ct
N M
oreno Ct
N Alder St
E Finni Ct
E Babcock Ct
S Bradley Ct
N Garcia St
N Dollner St
N Dayton Ct
E Myrtle Ave
E Janelli Ct
E Willow Ave
E Woodsville Ct
W Goshen Ave
Alley
Alley
E Oak Ave
N Giddings St
Alley
Alley
N Tipton St
N Ben M
addox W
ay
Hwy 198
W Perez Ave
N W
est St
E Vine Ct
W Race Ave
N Jacob St
Alley
E Vine Ct
N Rinaldi St
Alley
E Douglas Ave
E Ferguson Ave
E Sunnyview Ave
W Vine Ave
Alley
N Locust St
Alley
Private St
Alley
Hwy 198
N Court St
N Dudley St
E Douglas Ave
N Court St
E Sweet Ave
N Burke St
W Riggin Ave
N Mc Auliff St
N Bridge St
Alley
N Irm
a St
E Sweet Ave
N Turner St
E Noble Ave
N Liberty St
Rd 146
W Sunnyview Ave
N Sol St
N Shady St
W Riggin Ave
N Hall St
E Kaweah Ave
W Vine Ave
N Elm
St
Alley
Alley
N W
illis St
N Highland St
N Turner St
N Shady St
E Race Ave
E Sycamore Ave
N Goddard St
N Jacob St
W Porter Ave
E Vine Ct
E Oak Ave
N Leslie St
W Buena Vista Ave
FY 22-23 Reclamite Project
¯
0 0.35 0.7 1.05 1.40.175
Miles 06/23/2022
Legend
Area A (Measure N)
Area B (L&L District)
183
184
No. Items Qty Unit Unit Cost Total Unit Cost Total
1 Mobilization & Demobilization 1 LS $8,500.00 $8,500.00 $30,000.00 $30,000.00 2 Traffic Control 1 LS $35,000.00 $35,000.00 $100,000.00 $100,000.00 3 Portable Changeable Message Signs (PCMS) 1 LS $6,500.00 $6,500.00 $20,000.00 $20,000.00 4 Measure N Signage 1 LS $3,500.00 $3,500.00 $2,000.00 $2,000.00 5 Bituminous Seals - Reclamite 773,551 SY $0.73 $564,692.23 $0.90 $696,195.90 6 Striping and Pavement Markings 1 LS $85,000.00 $85,000.00 $140,000.00 $140,000.00 7 Raised Pavement Markers 1 LS $19,000.00 $19,000.00 $30,000.00 $30,000.00 $722,192.23 $1,018,195.90
Contractor Listed $722,192.23 $1,018,195.90
No. Items Qty Unit Unit Cost Total Unit Cost Total
1 Mobilization & Demobilization 1 LS $2,000.00 $2,000.00 $2,500.00 $2,500.00 2 Traffic Control 1 LS $5,000.00 $5,000.00 $5,000.00 $5,000.00 3 Portable Changeable Message Signs (PCMS) 1 LS $2,000.00 $2,000.00 $500.00 $500.00 4 Bituminous Seals - Reclamite 58,590 SY $0.73 $42,770.70 $0.65 $38,083.50 5 Striping and Pavement Markings 1 LS $13,000.00 $13,000.00 $10,000.00 $10,000.00 6 Raised Pavement Markers 1 LS $5,500.00 $5,500.00 $1,500.00 $1,500.00 $70,270.70 $57,583.50
Contractor Listed $70,270.70 $57,583.50
$792,462.93 $1,075,779.40
Contractor Listed $792,462.93 $1,075,779.40
FY 22-23 Reclamite Bid Tabulation
Total Bid Result (Area A + Area B)
Base Bid: Area A - Total
Base Bid: Area A Talley Oil, Inc.
Madera, CA
Intermountain Slurry Seal
Reno, NV
Alternate Bid 1: Area B
Alternate Bid 1: Area B - Total
Talley Oil, Inc. Intermountain Slurry Seal 185
Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 22-0269 Agenda Date: 7/18/2022 Agenda #: 6.
Agenda Item Wording:
Approve the purchase of two (2) Portable Changeable Message Signs (PCMS) for use on various City of Visalia CIP; and appropriate $45,000 from the Gas Tax Fund (111).
Deadline for Action: None
Submitting Department: Administration - CIP Engineering Contact Name and Phone Number:
Fred Lampe, Senior Civil Engineer, [email protected], 713-4270 Frank Senteno, City Engineer, [email protected], 713-4331 Nick Mascia, Assistant City Manager, [email protected], 713-4323 Department Recommendation:
Staff recommends that City Council approve the purchase of two (2) Portable Changeable Message Signs (PCMS) to begin use on the Caldwell Avenue Improvement Project from Akers Street to Shady Street project and other city projects to follow; and appropriate $45,000 from the Gas Tax Fund (111) Background Discussion:
The City of Visalia owns two Portable Changeable Message Signs (PCMS) for use on various street improvement and street maintenance projects. The PCMS have reached the end of their operational life. The PCMS were purchased around 2007 and operated well for ten years. From 2018 to 2022 they were still operational but needed more expensive repairs. The City owned PCMS are used exclusively by the Public Works Streets Division for various activities. At present time, staff has determined that further repairs do not justify the cost and so the PCMS are scheduled to be retired and sold at auction.
The changeable message signs are used to alert motorists of construction lane closures, detours, or other hazards ahead. They are also used to alert drivers of upcoming scheduled construction activities. PCMS are used for most, if not on all the City’sCIP projects occurring in the roadway. The signs have also been used to notice non-construction related events that may affect a roadway, such as a parade, bicycle race, or running event.
Due to the heavy usage of PCMS on the City’sCIP’s,staff recommends that these be purchased in lieu of paying the project’scontractor to “rent”this equipment as part of the respective project’straffic control bid item. Based on a cost of ownership/rental fee analysis developed for several projects, Staff estimates payoff of the PCMS to be over a three-year period and has provided the list of projects that will recognize a rental savings from the contractor. These savings stay in the Streets Capital Funds that will be used to fund other street projects. Once purchased, contractors would be required to make use of the City’sPCMS, reducing traffic control costs in their bid by the equivalent rental fee amount. Contractor would be required to safeguard equipment; similarly, as required by equipment rental yards. In addition, the Streets Maintenance Division could utilize these when not Visalia City Council Printed on 7/13/2022Page 1 of 2
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File #: 22-0269 Agenda Date: 7/18/2022 Agenda #: 6.
equipment rental yards. In addition, the Streets Maintenance Division could utilize these when not being ‘rented’ by the City project.
Initial Cost Recovery:
Project: Duration Rental Cost
Caldwell Improvement Project Sept 2022-Aug 2023 $ 20,000 from Akers Street to Shady Street
FY 21-22 SB1 Rehab Center Street Aug 2023-Dec 2024 $ 5,000 and Acequia Street
Caldwell Widening Project June 2024-May 2025 $ 20,000
from Santa Fe Street to Lovers Lane
Total BidSavings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $45,000 The three projects shown will save enough money to offset the initial purchase of the Portable Changeable Message Boards. The PCMS will then be available for other street projects as needed.
Based on an expected 10-year service life, the short pay-off period, and the consistent volume of roadway CIP projects warranting their usage, Staff recommends that City Council approve their purchase.
Fiscal Impact:
Staff recommends Council approve an appropriation of $45,000 from the Gas Tax Fund (111). The two PCMS are estimated to cost approximately $45,000, which includes sales tax and the cost to deliver the PCMS to the City. The PCMS is eligible to funded by the Gas Tax Fund (111) as Gas Tax funds may be used to purchase equipment for use for street improvements and maintenance.
Prior Council Action: None
Alternatives: Do not purchase the PCMS and have each CIP facilitate their own message board.
Recommended Motion (and Alternative Motions if expected):
I move to approve the purchase of two (2) Portable Changeable Message Signs for use on upcoming CIP and other city Streets usage; and appropriate $45,000 from the Gas Tax Fund (111).
Environmental Assessment Status: No Impact
CEQA Review: No Impact
Attachments: PCMS Exhibit
Visalia City Council Printed on 7/13/2022Page 2 of 2
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188
Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 22-0271 Agenda Date: 7/18/2022 Agenda #: 7.
Agenda Item Wording:
Accept and authorize the appropriation of funds allocated from 1) $1,833,734 from the Surface Transportation Block Grant Program (STBGP) and 2) $1,155,266 from the Highway Infrastructure Program (HIP) to the Major Street Rehabilitation - Tulare Ave. from Demaree St. to Cotta St. Project; and 3) $3,086,000 from the Surface Transportation Block Grant Program (STBGP) to the Major Street Rehabilitation - Tulare Ave. from Roeben St. to Demaree St. Project.
Deadline for Action: None
Submitting Department: Administration - CIP Engineering Contact Name and Phone Number:
Dolores Verduzco, Financial Analyst, [email protected], (559) 713-4540 Chantha Chap, Civil Engineer, [email protected], (559) 713-4418 Frank Senteno, City Engineer, [email protected], (559) 713-4331 Nick Mascia, Assistant City Manager, [email protected], (559) 713-4323 Department Recommendation:
Staff recommends that the City Council authorize the appropriation of funds allocated from the Surface Transportation Block Grant Program (STBGP) and the Highway Infrastructure Program (HIP) to the following:
Major Street Rehabilitation - Tulare Ave. from Demaree St. to Cotta St. Project
1. $1,833,734 from the STBGP
2. $1,155,266 from the HIP
Total Appropriation $2,989,000
Major Street Rehabilitation - Tulare Ave. from Roeben St. to Demaree St. Project
3. $3,086,000 from the STBGP
Background Discussion:
Surface Transportation Program Block Grant Program (STBGP) The STBGP is a major source of funds that is used by local agencies for projects to preserve and improve the transportation system to address regional and local transportation needs. The STBGP provides flexible funding so monies may be used for projects on any Federal-aid highway, bridge and tunnel projects on any public road, pedestrian and bicycle infrastructure, or transit capital project. The City of Visalia has primarily used these funds for street and highway construction, reconstruction, rehabilitation, resurfacing, and operational improvements. Funds are apportioned by the Federal Highway Administration (FHWA) to the State then to the Metropolitan Planning Organization (MPO).
The Tulare County Association of Governments (TCAG) is the MPO for Tulare County. TCAG calculates the amount of STBGP funds each agency will receive based on the size of population. The Visalia City Council Printed on 7/13/2022Page 1 of 4
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City received an approximate amount of $1.5M of STBGP funds on an annual basis.
However, in 2020 the FHWA required TCAG to change the allocation process from a population- based process to a competitive selection process. Funds from the competitive selection process will begin to be distributed starting Fiscal Year 2022-23. The STBGP funds being requested for appropriation to the projects outlined within this report are funds from the previous population-based process.
Highway Infrastructure Program (HIP)
HIP funds are apportioned to the State by formula then suballocated within the State by population.
Funds can be used to construct highways, bridges, tunnels and for local roads on the Federal-aid highway system. Funds are distributed annually to the County of Tulare in which the annual amount allocated differs from one year to the next. The HIP program has had four cycles of funding in which the highest amount allocated to the County within those four years was approximately $1.6M and the lowest amount allocated was approximately $400,000. TCAG (the local MPO) ensures funds are used on eligible projects.
City staff coordinated with TCAG staff to identify the projects (listed below) to utilize STBGP and HIP funds.
Major Street Rehabilitation - Tulare Ave. from Demaree St. to Cotta St. Project Project Scope: Rehabilitate the roadway on Tulare Avenue from Demaree Street to Cotta Street. The project will also consist of repairing miscellaneous damaged concrete structures such as curbs, gutter, drain inlets and ramps. Impacted ramps will be upgraded to be in ADA compliance and existing manholes and valve boxes will be adjusted to grade. In addition, the existing traffic signal will be upgraded to include video detection cameras and will include a combination of Class IV and protected Class II bike lanes.
Cost Estimate: $2,989,000
· $1,833,734 STBGP - These funds consist of the previous annual allocation of STBGP funds the City received from fiscal year 2020/21. Staff recommends these funds be designated to the rehabilitation of Tulare Ave. from Demaree St. to Cotta St. FHWA has approved these funds towards this project.
· $1,155,266 HIP - These HIP funds are from the first year of funding distributed from the HIP to the County. Staff recommends these funds be designated to the project identified. FHWA has approved these funds towards this project.
Major Street Rehabilitation - Tulare Ave. from Roeben St. to Demaree St. Project Project Scope: Rehabilitate the roadway on Tulare Avenue from Roeben Street to Demaree Street.
The project will also consist of repairing miscellaneous damaged concrete structures such as curbs, gutter, drain inlets and ramps. Impacted ramps will be upgraded to be in ADA compliance and existing manholes and valve boxes will be adjusted to grade. In addition, the existing traffic signal will be upgraded to include video detection cameras and will include a combination of Class IV and protected Class II bike lanes.
Cost Estimate: $3,086,000
· $3,086,000 STBGP - These STBGP funds are funds available from the STBGP population- based source of funds. TCAG notified the City of STBGP funds in the amount of $3.086 million that could be utilized towards the Riggin Avenue Widening from Akers to Demaree project.
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that could be utilized towards the Riggin Avenue Widening from Akers to Demaree project.
However, given the deadline associated with these funds, staff recommended these funds instead be allocated towards the rehabilitation of Tulare Ave. instead, allowing additional roadway to be rehabilitated along Tulare Ave. from Roeben to Demaree. TCAG agreed in allocating these STBGP funds towards this segment and funds have been programmed in the Federal Transportation Improvement Program (FTIP). The NEPA requirement needed to obligate these funds by the deadline has been completed.
Fiscal Impact:
In order for staff to begin implementing the projects, funds necessary to complete the projects must be appropriated. Therefore, Staff recommends that the City Council receive and appropriate the STBGP and HIP funds identified in this report to the respective road segments of Tulare Ave. These projects do not require a local match and staff has evaluated that these funds are currently sufficient to fully fund construction.
These funds will be tracked in the State Transportation (281) Fund. Upon approval, funds will be appropriated as follows:
Major Street Rehabilitation - Tulare Ave. from Demaree St. to Cotta St. Project STBGP Funds (281 Fund) $1,833,734
HIP Funds (281 Fund) $1,155,266
Total Funds to be appropriated (281) $2,989,000
Major Street Rehabilitation - Tulare Ave. from Roeben St. to Demaree St. Project STBGP Funds (281 Fund) $3,086,000
Total Funds to be appropriated (281) $3,086,000
Prior Council Action:
None.
Other:
None.
Alternatives:
None Recommended.
Recommended Motion (and Alternative Motions if expected):
I move to accept and authorize the appropriation of a total of $2.989M of STBGP and HIP funds to the State Transportation Fund (281) for the Tulare Ave. from Demaree St. to Cotta St. project; and appropriate $3.086M of STBGP funds to the State Transportation Fund (281) for the Tulare Ave. from Roeben St. to Demaree St. Project.
Environmental Assessment Status:
NEPA Review: Categorical Exclusion under CFR 771.117(c), activity (c) 26 CEQA Review:
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CEQA Review: Categorical Exemption, Class 1, Section 15301c Attachments:
Location Map
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Tulare Avenue from Demaree to CottaTulare Avenue from Roeben to Demaree M
ain
Akers
Tulare
WhitendaleNoble
K
Chinowth
Linwood
Center
Hurley
Giddings
Murray
Roeben
Goshen
Santa Fe
Acequia
Ben Maddox
Hwy 198
W
alnut
Woodland
3rd
Cam
pus
Court
M
ineral King
Jacob
Burke
Locust
Hall
Conyer
2nd
Willis
Mill Creek
Mooney
County Center
Bridge
Demaree
Divisadero
Bridge
Willis
Court
Goshen
Court
Conyer
M
ineral King
Demaree
Santa Fe
Burke
Locust
Santa Fe
Burke
Mooney
Goshen
M
ineral King
Noble
Jacob
Willis
Walnut
3rd
Burke
Court
Noble
Conyer
±
1 inch = 2,500 feet
CITY OF VISALIA - TULARE AVENUE
LOCATION MAP
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Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 22-0272 Agenda Date: 7/18/2022 Agenda #: 8.
Agenda Item Wording:
Request authorization to record the final parcel map for Tentative Parcel Map No. 2019-06, located at the northwest corner of West Sunnyview Avenue and North Clancy Street. APN: 077-200-039.
Deadline for Action: 7/18/2022
Submitting Department: Community Development
Contact Name and Phone Number:
Ather Razaq, Associate Engineer, [email protected], 713-4268 Jason Huckleberry, Assistant Director - Community Dev, [email protected], 713-4495 Paul Bernal, Community Development Director, [email protected], 713-4025 Department Recommendation:
Staff recommends that City Council authorize the recordation of the final parcel map for Tentative Parcel Map No. 2019-06.
Summary:
The final parcel map is dividing 5.95 acres into nine (9) parcels all of which have been fully developed. Parcels 1 through 8 have been developed for eight industrial use buildings. Parcel 9 has been improved as a common use lot, which includes utilities, drive aisles, parking, trash enclosures, landscaping, and a required storm water basin.
The parcel map will dedicate Clancy Street north of Sunnview Avenue, as well as 60 square feet of right-of-way for the curb ramp at the northwest corner of Clancy Street and Sunnyview Avenue. With the dedication of Clancy Street, the map will abandon an Irrevocable Offer of Dedication to the City of Visalia as shown on Parcel Map No. 4452 for Clancy Street.
The project is consistent with Tentative Parcel Map No. 2019-06 approved by the Planning Commission on July 8, 2019.
Background Discussion:
Pursuant to Title 16 (Subdivisions) of the Visalia Municipal Code, the City’sauthorization to record the final parcel map is a ministerial action. Specifically, Section 16.24.080 limits the City Council’s action to the specific determination that the final parcel map conforms substantially to the contents of the tentative map, Chapter 16, and the Subdivision Map Act, and provides in pertinent part that “ifthe Council determines that the map is in conformity with the requirements of this Chapter, the Council shall approve the map (emphasis added).” Disapproval based upon any other reasons would be outside the authority of the Council for this particular action. The Council may reject any and all offers of dedication in the final parcel map pursuant to Section 16.24.080, and require that the City Engineer so indicate on the map, however staff’srecommendation is that the City Council authorize recordation of the final parcel map and accept all offers of dedication as previously described in this Visalia City Council Printed on 7/14/2022Page 1 of 2
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recordation of the final parcel map and accept all offers of dedication as previously described in this report.
Fiscal Impact:
The recording of this final parcel map will have no fiscal impact. There are no shared landscapes or lighting improvements or open spaces.
Committee/Commission Review and Action:
Tentative Parcel Map 2019-06 was approved by the Planning Commission on July 8, 2019.
Recommended Motion (and Alternative Motions if expected):
I move to authorize the recordation of the final parcel map for Tentative Parcel Map No. 2019-06.
CEQA Review:
Categorically Exempt pursuant to CEQA Guidelines Section 15315, Categorical Exemption No 2021-
22. Attachments:
1. Final Parcel Map
2. Aerial Map
3. Development Disclosure
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Aerial Map
N Shirk St
Ave 312
W Doe Ave
W Sunnyview Ave
N Clancy St
W Riggin Ave Rd 92
¯TPM 2019-06
0 280 560 840 1,120140
Feet
Legend
City Limits
Streets
PARCELS
Subject Property
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Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 22-0273 Agenda Date: 7/18/2022 Agenda #: 9.
Agenda Item Wording:
Authorize the City Manager to enter into a (3) year service and software license agreement with ePlus Technology, Inc., of Rocklin, to purchase CrowdStrike next-generation antivirus and cyber security protection services piggybacking the State of California Department of General Services (DSG) Software Licensing Program contract, for a total of $345,000.
Deadline for Action: 7/18/2022
Submitting Department: Finance and Technology Services
Contact Name and Phone Number:
Jaime Salazar, IS Supervisor 559-713-4121 [email protected] John Howson, IS Manager, 559-713-4122 [email protected] Renee Nagel, Finance & Technology Director, 559-713-4375 [email protected] Department Recommendation:
It is recommended that the Visalia City Council authorize the City Manager to enter into a (3) year service and software license agreement with ePlus Technology, Inc., of Rocklin, to purchase CrowdStrike next-generation antivirus and cyber security protection services piggybacking on the State of California Department of General Services (DSG) Software Licensing Program Contract Number 9-21-70-0002C, for a total of $345,000.
Background Discussion:
Information Services (IS) maintains an antivirus system designed to catch and prevent malicious viruses and malware. Current systems in place to provide antivirus mitigation have been in operation for many years and have consistently provided a basic level of protection. With cyber security risks increasing and becoming more of a threat to agencies the size of Visalia, the need to increase the City’s security systems has become a priority.
IS staff evaluated the gap in services provided by the current solution and methodology and developed a list of technical and operational requirements and goals. Primary goals defined include developing better ways to protect data, proactively identify and prevent ransomware infection, provide protection to an increasingly mobile workforce, quick recovery from an infection, and 24x7 monitoring. Staff performed research across the industry seeking solutions to meet these goals. The team utilized analysis from other California cities, school districts, and special districts, along with reviewing technical documentation, participating in product demonstrations, and interviewing technical staff from other agencies to formulate a plan for meeting these goals.
After evaluating several alternatives and collaborating with staff from other agencies, a combined approach of next-gen antivirus, active monitoring and mitigation, and identity monitoring and protection was identified. By replacing the current platform, the City can meet the security goals of Visalia City Council Printed on 7/13/2022Page 1 of 2
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File #: 22-0273 Agenda Date: 7/18/2022 Agenda #: 9.
mitigating data corruption, data loss, and cyber security threats.
Crowdstirke was identified as the best fit and best value for the City. The Crowdstrike solution is offered on an existing competitively bid state contract that allows local agencies to piggyback these contracts.
CrowdStrike defends against breaches by combining next-generation antivirus with endpoint detection and response, and managed threat hunting and mitigation. These technologies are managed by the Falcon Complete Team (the Team is included and part of the CrowdStrike operation) which also provide threat response on a 24x7 basis, responding to threats instantly. Additionally, Falcon Spotlight will highlight areas of exposure that helps staff eliminate potential system vulnerabilities early.
Included is an AIG backed Breach Prevention warranty that will cover up to $100,000 in breach response expenses if there is a security incident within the environment protected by Crowdstrike.
Warranty is active during the first 12 months of subscription.
Fiscal Impact:
Funds for this project were appropriated by Council on December 20, 2021 (6420-72000/EQ0184).
This project has a current budget of $450,000 in the American Rescue Plan Act (ARPA) fund.
Prior Council Action: On December 20, 2021, staff presented to Council the proposed ARPA funded projects, this included the next-gen antivirus security project to address evolving threats from malware and sophisticated new attacks.
Other: N/A
Alternatives: Council can choose to deny the recommendation and reconsider the project as a general fund capital improvement project (CIP) or direct staff to evaluate options to continue to protect the City’s IT infrastructure with existing technology.
Recommended Motion (and Alternative Motions if expected):
I move to authorize the City Manager to enter into a (3) year service and software license agreement with ePlus Technology, Inc., of Rocklin, to purchase CrowdStrike next-generation antivirus and cyber security protection services piggybacking the State of California Department of General Services (DSG) Software Licensing Program Contract Number 9-21-70-0002C, for a total of $345,000.
Attachments: CrowdStrikePacket.pdf
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Customer Name:
City of Visalia Quote No:22808610Quote Name:Crowdstrike - 36 Months Quotation Date:05/16/2022 Sales Support Contact: SABRINA JORDAN Sales Support Phone:949-930-7366 Sales Support Email:SABRINA.JORDAN@EPLUS .COMAccount Executive:Brittani Neff Account Executive Phone:916-897-4667 Account Executive Email:[email protected] Customer PO No: Order No:Expiration Date:06/15/2022 ExternalNotes:SLP 9-21-70-0002C001CS.FCSD.HPS.SOLN.36M CROWDSTRIKE FALCON COMPLETE WITH SERVER THREAT GRAPHSTANDARD200 247.73 49,546.00 002CS.INSIGHTB.SOLN.T6.36M CROWDSTRIKE INSIGHT 200 0.00 0.00 003CS.PREVENTB.SOLN.T6.36M CROWDSTRIKE PREVENT 200 0.00 0.00 004CS.DISCB.SOLN.T6.36M CROWDSTRIKE DISCOVER 200 0.00 0.00 005CS.FALCOMPS.SVC.36M CROWDSTRIKE FALCON COMPLETE SUBSCRIPTION 200 0.00 0.00 006CS.OWB.SVC.T6.36M CROWDSTRIKE OVERWATCH 200 0.00 0.00 007CS.TGB.STD.HPS.36M CROWDSTRIKE SERVER THREAT GRAPHSTANDARD 200 0.00 0.00 008CS.FCSD.SOLN.T3.36M CROWDSTRIKE FALCON COMPLETE WITH THREAT GRAPH STANDARD 800 193.18 154,544.00 009CS.INSIGHTB.SOLN.T6.36M CROWDSTRIKE INSIGHT 800 0.00 0.00 010CS.PREVENTB.SOLN.T6.36M CROWDSTRIKE PREVENT 800 0.00 0.00 011CS.DISCB.SOLN.T6.36M CROWDSTRIKE DISCOVER 800 0.00 0.00 012CS.FALCOMPS.SVC.36M CROWDSTRIKE FALCON COMPLETE SUBSCRIPTION 800 0.00 0.00 013CS.OWB.SVC.T6.36M CROWDSTRIKE OVERWATCH 800 0.00 0.00 014CS.TGB.STD.36M CROWDSTRIKE THREAT GRAPH STANDARD 800 0.00 0.00 015.FALCOMPONBC.SOLN.36M CROWDSTRIKE FALCON COMPLETE: CSCOMPLIMENTARY CID 1 0.00 0.00 016RR.PSO.ENT.NCAP.36M CROWDSTRIKE UNIVERSITY LMS SUBSCRIPTION NEW CUSTOMER ACCESS PASS6 0.00 0.00 017CS.SPOTLT.SOLN.T6.36M CROWDSTRIKE FALCON SPOTLIGHT 1000 15.91 15,910.00 018RR.HOS.ENT.EXPS.36M CROWDSTRIKE EXPRESS SUPPORT 1 23,522.73 23,522.73 Line No. Part Number MFG Description/Line Notes QTY Unit Price Ext. PricePage 1 of 2 202
Totals
316,142.73 Sub Total (USD):316,142.73 Est. Tax (USD):TBD if Applicable Shp&Hnd (USD):TBD Total (USD):316,142.73 All orders are governed by your organization's signed agreement with ePlus or applicable public sector contract; if there is no such agreement the Customer Terms and Conditions forProducts and/or Services located at www.ePlus.com govern. No additional or contrary terms in a purchase order shall apply, and ePlus' performance shall not be deemed acceptance ofany preprinted PO terms. Use of software, subscription services or other products resold by ePlus is subject to manufacturer/publisher end user agreements or subscription terms. Anyperiodic payment obligations for specific offerings, along with customer-incurred overages, consumption fees, add-ons, quantity adjustments and automatic renewals are non-cancelablefor any reason except by public sector customers required by law to terminate due to non-appropriation of funds. PLEASE NOTE: Recent supply chain disruption and tariffs on certain imports are causing price increases for many IT products, with little or no notice, and beyond ePlus' control. As aresult, this quote is subject to change without notice, even before the expiration date reflected above. Related manufacturer policy changes may result in orders being non-cancelable andproducts non-returnable except in accordance with the manufacturer warranty. Please confirm pricing and other restrictions prior to order placement. Unless freight amount is indicated, oris zero, freight will be added to the invoice. Unless Bill-To company is exempt from Sales Tax, it will be added to the invoice. Recognizing that the global pandemic has disruptedoperations for many organizations, ePlus will ship products for delivery in accordance with customer's written ship-to instructions and products will be deemed delivered notwithstandingany failure of customer personnel to sign for receipt due to facility closing or otherwise. Customer Acceptance Bill To Ship To Signature: ____________________________________ Name: _______________________________________ Title: _________________________________________ Date: ________________________________________ Customer PO #: _______________________________City of Visalia P.O. Box 5078Finance DeptVisalia CA 93278UNITED STATESACCOUNT PAYABLECity of Visalia INFORMATION SERVICES MIS315 EAST ACEQUIAVISALIA CA 93291UNITED STATES019 CS.DEVICE.SOLN.T6.36M CROWDSTRIKE FALCON DEVICE CONTROL 1000 6.82 6,820.00 020CS.ITPC.SOLN.36M CROWDSTRIKE IDENTITY THREAT PROTECTION COMPLETEBUNDLE 1000 65.80 65,800.00 021CS.ITP.SOLN.36M CROWDSTRIKE IDENTITY THREAT PROTECTION (ACCOUNTS) 1000 0.00 0.00 022CS.ITPCU.SOLN.36M CROWDSTRIKE IDENTITY THREAT PROTECTION COMPLETE UPGRADE (ACCOUNTS)1000 0.00 0.00 Page 2 of 2 203
150 Mathilda Place, Suite 300
Sunnyvale, California 94086 - United States http://www.crowdstrike.com
THE INFORMATION AND PRICING CONTAINED IN THIS QUOTE/ORDER IS CONFIDENTIAL Falcon Complete Product Description with SLA
CrowdStrike Falcon Complete is a managed threat response capability built on the CrowdStrike Falcon Platform. It consists of: the CrowdStrike Falcon Prevent application (NGAV), the CrowdStrike Falcon Insight application (EDR), the CrowdStrike Falcon Discover application, and the CrowdStrike Falcon OverWatch (managed threat hunting) offering and the Falcon Complete Team. The Falcon Complete Team (Complete Team) provides Falcon Platform management and managed threat response on a 24x7 basis. CrowdStrike will work with Customer to document the Customer’s information in an Operating Model which contains a playbook specifying one of three available asset security postures selected by the Customer (the “Playbook”) for those endpoints (or groups of endpoints) on which the Falcon sensor has been installed and is managed by the Complete Team (“Covered Endpoints”). In the event of a Falcon Platform detection, the Complete Team will act in accordance with the Playbook. Th e parties will mutually agree in the Playbook on the counter -measures to be taken by the Complete Team, if any.
The Complete Team Service Level (“CT SLA”) is as follows.
TABLE 1
Detection Level/Customer Request Average Response Time
Critical 1 hour
High 2 hours
Medium 2 hours
Customer Requests made via email 2 hours
Response Time. Within the time period designated as the Response Time in Table 1 above, where such Response Time begins at the time the Falcon Platform identifies the corresponding detection (Critical, High, Medium), the Complete Team will acknowledge receipt of the critical detection in the Falcon Platform for Covered Devices designated in the Active Security Posture Zones in the Playbook, and begin resp onding to such detections in accordance with the Playbook. The Detection Level is specified by the Falcon Platform. Additionally, the Complete Team will respond to Customer requests (as indicated above) within the Response Time starting at the time the C omplete Team receives the Customer request via email at: [email protected].
SLA Calculation. The CT SLA will be measured on a calendar month basis by looking at the Average Response Time for each detection level set forth in Table 1 above a nd Customer requests. The “Average Response Time ” for each detection level shall be calculated by: (a) dividing: (i) the total number of hours or fractions thereof of response times (i.e., the period of time it takes the Complete Team to respond as descri bed above) for Customer during an applicable calendar month (excluding only downtime occurring during the Falcon Platform scheduled maintenance period or attributable to elements of force majeure) by (ii) the total number of each applicable type of (i) det ections (e.g., Critical, High or Medium), or (ii) Customer requests in such month. Each calendar month, CrowdStrike shall, for the prior month, provide to Customer the Average Response Time for each detection level set forth in Table 1 and for Customer requests.
Service Level Credits. In the event CrowdStrike fails to meet any one or more of the CT SLAs in any calendar month, CrowdStrike shall, as Customer’s sole and exclusive remedy for any one or more CT SLA failures, extend the Falcon Complete subscription term for seven days (one week) at the end of the pre-paid term for the aggregate SLA failures, at no cost to Customer; provided, however, that Customer requests such remedy by sending an email to [email protected] within 60 days from the end of the calendar month experiencing the CT SLA failure. For clarity, CrowdStrike’s obligation will survive the termination of the applicable Order or this Agreement.
The Complete Team does not perform: (i) forensic disk analysis, (ii) other advisory or consulting services, such as, but not limited to, systems configuration management, patch management, user awareness training, penetration testing, (iii) other strategic cyber security services, (iv) data recovery services for deleted, encrypted or otherwise lost data; or (iv) any services for any systems or endpoints other than Covered Endpoints. 204
CrowdStrike Business Proposal for City of Visalia
All modules in Yellow are part and fully managed by our Falcon Complete team Module in Green is managed by the Visalia IT Team
Modules in Blue relate to our ongoing dedicated customer support and trainings --------------------------------------------------------------------------------------------------------- Falcon Complete Endpoint and Identity Protection
Falcon Complete for Endpoint Protection and Identity Threat Detection and Protection (100% Management, Response, Triage, and Remediation): CrowdStrike Falcon Complete is a fully managed cybersecurity endpoint protection service that monitors, detects, prevents, and remediates possible breaches and intrusions. Staffed 24/7/365 by CrowdStrike analysts with years of experience using the Falcon Enterprise suite of security modules, Falcon Complete is highly effective at stopping intrusions and reducing risk, while eliminating many of the ever-increasing challenges and burdens of building, staffing, and maintaining your own security operations center. All Falcon Complete team members are CrowdStrike employees with a minimum of 7-10 years of incident response and threat remediation expertise.
Rapid time to value with a fully operational security operations center in a week. The intial install is your only responsibility. Onboarding starts within 24 hours of contract execution and begins with working hand-and- hand with your Complete anaylist to create a Incident Response Playbook. This elite team uses this playbook to take action when notified by Falcon Overwatch of an advanced attack in your environment that somehow made it past both the prevention and detection capabilities of Falcon Prevent. The Complete team will never leave you with remediation homework – they will investigate and fully remediate the threat. Afterwards, a report is provided with full disclousure of actions taken in your environment. We respond immediately to all levels of alerts (Low, Medium, High and Critical)
Force multiplier of your team, without the costs of hiring employees, Complete manages of all aspects of the Falcon Platform - onboarding new assets in your environment, training your team, tuning and configurations.
Monthly executive reports are sent to you highlighting threats CrowdStrike blocked/remediated, along with other admin duties performed such as standing up new employee machines or alerting you to unpatched applications. Leveraging Falcon Complete for endpoint protection creates a truly managed, set-and-forget experience.
Included is a AIG backed Breach Prevention warranty to Falcon Complete™ customers that will cover up to $100 Thousand in breach response expenses if there is a security incident within the environment protected by CrowdStrike Falcon Complete. Warranty is active for first 12 Months of subscription.
Only responsibility of customer is to deploy out the Falcon Sensor and establish postures with their dedicated Falcon Complete Program Manager. Customer are typically fully up and running within a few days.
Falcon Complete Identity Threat Protection - augments the core CrowdStrike Falcon Complete managed endpoint protection offering, delivering unparalleled security for identities and identity stores. The solution combines CrowdStrike’s leading Falcon Identity Threat Protection solution with the expertise of the Falcon Complete team, which manages and actively monitors Falcon solutions for customers, investigating and surgically remediating incidents in minutes. Managed identity threat protection helps organizations to run an 205
effective and mature identity security program without the burden, costs and time associated with building one internally.
Falcon Identity Threat Protection enables frictionless identity security, delivering real-time threat prevention and IT policy enforcement using identity, behavioral and risk analytics.
Segmented workforce identities: Gain granular and continuous insights into every account and activity to highlight identity security gaps across identity stores, and empower security teams to better evaluate identities and the risks associated with them.
Automated identity threat detection and response: Enable real-time identity threat detection and protection without time-consuming log processing. Eliminate risky guesswork and prioritize authentication tasks based on over 100 behavior analytics and risk factors for every account.
Verified identities with zero friction: Secure employee or contractor access to applications, tools and resources with a zero-friction user experience. Ensure consistent login experience for genuine users, but automatically step up authentication when risk scores increase.
PROACTIVE MANAGEMENT AND OPTIMIZATION
The Falcon Complete team ensures that your Falcon Identity Threat Protection deployment starts on the right track with carefully crafted policies that meet your specific needs, and continuously tunes them to ensure your environment is always protected against emerging identity threats.
Deployment and managing of best practices policies: Leverage the expertise of skilled CrowdStrike analysts to immediately stop anomalous authentication attempts, restrict use of privileged accounts and block lateral movement with compromised identities.
Continuous tuning and optimization: As the Falcon Complete team learns more about your environment and unique requirements, it fine-tunes packaged and custom rules to reduce false positives and optimize protection.
Monthly metrics: Regular reports provide relevant, up-to-date insights you can use to understand and improve your identity security program.
SURGICAL RESPONSE TO IDENTITY-BASED THREATS IN MINUTES
Minutes matter when an attack occurs, and your defenders who need to act may be hours away from their keyboards. Falcon Complete executes surgical remediation to stop identity-driven attack techniques in their tracks, any time of day or night.
Enforcement of multifactor authentication (MFA): When suspicious activity is identified, Falcon Complete analysts can trigger reauthentication with MFA, shutting the door on intruders.
Reset compromised passwords: An adversary with valid credentials is free to return again and again and move at will across the network. Falcon Complete takes decisive action to revoke unauthorized access at the source.
Surgical remediation in minutes. The Falcon Complete team executes surgical remediation remotely in near real time, eliminating the cost and burden of reimaging.
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Technology Modules
Falcon Prevent provides best-in-class prevention by blocking brand new malware, exploits, and advanced malware-free attacks by using Machine Learning and AI, alongside a behavioral approach that analyzes Indicators of Attack. Includes Control & Respond for network contain and remote remediation capabilities.
Certified to replace legacy antivirus products — Independent testing at AV-Comparatives and SE Labs has certified Falcon Prevent's antivirus capabilities. Falcon Prevent has also been validated for PCI, HIPAA, NIST and FFIEC regulatory requirements.
Falcon Insight enables advanced Endpoint Detection & Response (EDR) capabilities by providing deep visibility into metadata generated by the endpoint. This visibility allows detection of advanced attacks that may have circumvented the endpoint’s prevention capabilities and allows easy access to understand devices in your network that are currently unmanaged. Insight also enables rapid response to an active threat by allowing you to network contain a machine to prevent any further communication to any internal or external networks.
CrowdStrike Threat Graph: The EDR module of the platform (Insight) generates a significant amount of metadata; instead of storing this data on the endpoints or on an on-prem server, it’s stored in the cloud platform where you have access to see all of the activity across your environment’s endpoints. The platform takes the load off of your endpoints and transfers the heavy lifting to the cloud. Standard data retention period for all benign meta data is 7 days,. Detections and data relating to malicious activities are kept in the console for up to 90 days. Threat graph enables the Overwatch team to hunt through customers EDR data, and find advanced adversary activity to provide 100% detection of all threats in your environment.
Falcon Overwatch: Overwatch is the 24x7/365 Human Managed Hunting team, comprised of senior threat analysts, that proactively hunts for advanced attacks on your environment. Our team hunts through all of your EDR data to identify any attacks that could have bypassed our anti-virus. Our Overwatch team hunts for suspicious activites to stop adversary’s before they can launch an attack.
Falcon Overwatch is one of the human capital teams included in our Falcon Complete solution. All Falcon Overwatch team members are CrowdStrike employees who are experts in threat hunting and our platform, holding a minimum of 5-7 years of experience in threat hunting.
Falcon Discover allows the user to have better visibility and control into their users’ machine. Leveraging the EDR platform, Discover allows customers to see managed/unmanaged devices inside their network, uncover rogue application usage, and detect when passwords and patches were last updated. Discover enables our Complete team to find devices in an environment that are potentially uncovered, our team can identify these machines and ensure that each machine in the environment is covered with the Falcon sensor to bolster security.
Falcon for Identity Threat Detection (ITD): CrowdStrike Falcon Identity Threat Detection (ITD) represents the first level of detection for AD security. Falcon ITD provides visibility for identity-based attacks and anomalies, comparing live traffic against behavior baselines and rules to detect attacks and lateral movement. It provides real-time Active Directory security alerts on rogue users and sideways credential movement within the network or cloud. ITD enables you to:
• See all organizational service accounts, privileged users, and user credentials 207
• Add the context of “who” to network attack discovery and investigation, with behavioral analysis for each credential
• Track every authentication transaction, and alert when the risk is elevated, or if the traffic is abnormal (varies from normal patterns of user behavior)
• Expand understanding for both architecture and security teams by combining context of authentication-level events with recommended best practices for network security
Falcon for Identity Threat Protection (ITP): Identity Threat Protection (ITP) segments identities and autonomously enforces risk-based conditional access, reducing risk significantly. It also provides a perfect platform for responders to revoke access quickly when threats are uncovered in the environment. With ITP, defenders can:
• Contain lateral movement across on-prem, hybrid, and SaaS environments • Stop ransomware at both the code execution and identity layers • Protect Active Directory, often the weakest link in cyber defense
Module Managed by Visalia IT Team
Falcon Spotlight: Offers security teams a real-time assessment of vulnerability exposure on their endpoints that is always current. Spotlight delivers timely, zero-impact assessments of endpoint security posture and provides on-demand access to the results and bridges the gap between vulnerability/exploits and threat prevention. Spotlight enables the ability to remotely push out available patches to workstations. Allowing our customer to cover gaps and harden their entire infrastructure. CrowdStrike provides an expert rating to the different patches giving the team information on the most severe vulnerabilities and where to spend their effort.
Support and Training
Express support: Designed for customers in small to medium-sized enterprise environments where deployment and operational issues must be addressed as quickly as possible. Includes an dedicated account manager, 4 hour support SLA, Quarterly reviews, and a dedicated Falcon Complete Program Manager.
Access to CrowdStrike’s team of technical account managers for product advice and issue escalation. Acess to premium hands on training and webinars.
CrowdStrike University LMS: Learn what you need to know to get started with CrowdStrike, gain advanced skills to use on the job and take exams to become a CrowdStrike certified professional. CrowdStrike University is an online learning management system (LMS) that organizes all CrowdStrike e-learning, instructor-led training and certification in one place, providing a personalized learning experience for individuals who have an active training subscription.
208
Governor Gavin Newsom
PROCUREMENT DIVISION | State of California |Government Operations Agency 707 3rd Street, 2nd Floor | West Sacramento, CA 95605 | t 916.375.4400 f 916.375.4613
1/7/2022
ePlus Technology, Inc.
233 Technology Way, Suite 5
Rocklin, CA 95765
Ms. Carrie Verbeke,
The state is pleased to accept your offer to establish a Software Licensing Program PLUS (SLP PLUS) contract. Your SLP PLUS contract number is 9-21-70-0002C. This contract number must be shown on every invoice you issue to a state or local government agency customer. Ordering agencies may purchase their software products and/or software maintenance from your SLP PLUS contract during the term of the Crowdstrike Offer Number CROWDSTRIKE-SLP PLUS-
21. This acceptance letter and the attached SLP PLUS contract are considered to be the contract.
Upon request, it is the responsibility of your organization to furnish copies of the SLP PLUS contract to state and local government agencies.
The SLP PLUS Program strongly recommends that government agencies place orders with suppliers who provide ALL of the contract elements.
This letter shall not be construed as a commitment to purchase any or all software products and/or software maintenance from your firm.
Approval is required from the state for all news releases about the SLP PLUS contract. Also, it is not acceptable to include products or services on the SLP PLUS contract which are not approved on the Software License Agreement.
Should you have any questions regarding this contract, please contact me at 916-617-3640.
Thank you for your continued cooperation and support of the SLP PLUS Program.
Sincerely,
LILLIAN JUE
Contract Administrator
Software Licensing Program
209
Procurement Division
707 Third Street, 2nd Floor, MS #2-202
West Sacramento, CA 95605-2811
Procurement Division | State of California | California Government Operations Agency 707 3rd Street, 2ndFloor | West Sacramento, CA 95605 | t 916.375-4400 State of California
SOFTWARE LICENSING PROGRAM (SLP PLUS)
Contractor:
Contract Number:
SLP Plus Contract Term:
Contract Base:
ePlus Technology, Inc.
9-21-70-0002C
1/06/2022 through 12/14/2024
Crowdstrike Offer Number CROWDSTRIKE-SLP PLUS-21
This contract is available for use by State of California departments and any city, county, special district, educational agency, local government body or corporation empowered to expend public funds. While the state makes this contract available, each local agency should make its own determination whether the SLP PLUS is consistent with their procurement policies and regulations.
The SLP PLUS Contractor is required to provide all SLP PLUS contract terms and conditions with the list of products, services and prices.
Terms and conditions listed below are hereby incorporated by reference and made a part of this SLP PLUS Agreement as if attached herein and shall apply to the purchase of goods or services made under this Participating Agreement. Contractor non-compliance with the requirements of this contract may result in contract termination.
By signing below, Contractor agrees to the General Provisions dated November 19, 2021, SaaS Cloud Computing Services Special Provisions dated March 15, 2018 and all other provisions included herein.
1) General Provisions – Information Technology (GSPD-401IT) effective 11/19/2021 2) Cloud Computing Services Special Provisions (Software as a Service) effective 3/15/2018
3) General Provisions – Information Technology Cloud Computing Software as a Service (SaaS) effective 11/19/2021
For State of CA:
Patrick Mullen
Manager
Multiple Award Programs Section
Procurement Division
Department of General Services
Date
For Contractor:
Signature
Printed Title
Printed Name
Company Name
Date
For
01/06/2022
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CONTRACTOR PROVIDES COPY OF
THE CONTRACT AND SUPPLEMENTS
The SLP PLUS Contractors are required to
provide the entire contract that consists of
the following:
x SLP PLUS Cover sheet with signatures
from the DGS Procurement Division
Deputy Director or designee and
Contractor.
x Ordering instructions.
x Std. 204 Payee Data Record.
x SLP PLUS Contract terms and
conditions (General provisions).
x Software License Agreement pricing.
x Supplements, if applicable
CONTRACTOR QUARTERLY REPORTS
Contractors are required to submit a
detailed report quarterly to the DGS
Procurement Division, Software
Licensing Program. A separate report is
required for each contract, as differentiated
by alpha suffix (if applicable). Contractors
with resellers are responsible for reporting
reseller ordering activity. Any report that
does not follow the required format or that
excludes information will be deemed
incomplete and returned to the contractor.
All SLP PLUS contractors, including
certified Small Businesses and Disabled
Veteran Business Enterprises, will be
required to pay DGS-PD a 1.25% incentive
fee for all orders placed by local
government agencies via a SLP PLUS
contract. This policy however, does not
affect orders placed by State government
offices. State agencies will continue to be
billed the applicable administrative use fee
by the DGS-PD.
The SLP PLUS Business Activity Report
form separates sales to State and local
government agencies.
SLP PLUS Quarterly Business Activity
Reports are due in the SLP Unit within two
weeks after the end of each quarter as
shown below:
Quarter 1
Jan 1 to Mar 31 Due Apr 15
Quarter 2 Apr 1 to Jun 30 Due Jul 15
Quarter 3 Jul 1 to Sep 30 Due Oct 15
Quarter 4 Oct 1 to Dec 31 Due Jan 15
Each contractor is required to remit to the
DGS-PD an incentive fee equal to 1.25%
of the total of all local government agency
orders (excluding sales tax and freight)
placed against their SLP PLUS contract(s)
for the applicable quarter.
The check covering this fee shall be made
payable to the Department of General
Services, Software Licensing Program, and
be attached to the supporting SLP PLUS
Quarterly Report.
Mail report and check to:
Department of General Services
Procurement Division, SLP Unit
Quarterly Report Processing
PO Box 989052, MS 2-202
Attn: Software Licensing Program
West Sacramento, CA 95798-9052
SLP PLUS Reports which include a check
made payable to the DGS-SLP Unit must
be mailed via hard-copy, and cannot be
accepted via facsimile or e-mail.
New contracts for contractors with
existing contracts, and extensions or
renewals of existing contracts, will be
approved ONLY if the contractor has
submitted to the SLP Unit all quarterly
reports, due. Each quarterly report is
required within two weeks of the end of
March, June, September, and December
of each calendar year. A report is
required even when there is no activity.
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The report must include the agency name,
purchase order number, purchase order
date, state agency billing code, pre-tax
total order cost, agency contact name,
address and phone number, and total
dollars for the quarter. Tax must NOT be
included in the quarterly report, even if the
agency includes tax on the purchase order.
A sample quarterly report indicating
required format and information is attached
for your reference (Attachment A).
CONTRACTOR INVOICES
Unless otherwise stipulated, the contractor
must send their invoices to the department
address set forth in the purchase order.
Invoices shall be submitted in triplicate and
shall include the following:
x Contract number
x Agency purchase order number
x State Agency Bill Code
x Line item number
x Unit price
x Extended line item price
x Invoice total
State sales tax and/or use tax shall be
itemized separately and added to each
invoice as applicable. The company name
on the SLP PLUS contract, purchase order
and invoice must match or the State
Controller’s Office will not approve
payment.
CONTRACTOR OWNERSHIP
INFORMATION
ePlus Technology, Inc. is a large business
enterprise.
AGENCY NON-COMPLIANCE
Agency non-compliance with the
requirements of this contract may result in
the loss of delegated purchasing authority
to use the SLP PLUS.
PLEASE REQUEST A COPY OF ALL
CONTRACT TERMS AND CONDITIONS
FROM THE CONTRACTOR, IF NOT
PROVIDED INITIALLY.
AVAILABLE PRODUCTS AND/OR
SERVICES
This contract provides for the purchase
and warranty of software, software
maintenance, technical support, training,
installation, software as a service.
Only products from the manufacturer listed
below are available within the scope of this
contract:
x Crowdstrike
UNAVAILABLE PRODUCTS AND/OR
SERVICES
The following products and/or services are
not available under this contract:
x STANDALONE HARDWARE
x CONSULTING
x IMPLEMENTATION
Notice to State Agencies: Software
appliances/hardware products offered
under the Software Publisher’s pricelist are
NOT available under the Software
Licensing Program (SLP) if the same type
of software appliance/hardware products
are currently available under any
mandatory Statewide Contract. State
agencies who want to purchase a software
appliance/hardware product type, other
than what is available through a
mandatory Statewide Contract must submit
an exemption request to the mandatory
Statewide Contract Administrator. For
more information and the required
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justification forms regarding the exemption
process, please refer to the following
website:
https://www.dgs.ca.gov/PD/Services/Page-
Content/Procurement-Division-Services-
List-Folder/Request-an-IT-Hardware-
Contract-Exemption. This restriction does
not apply to local governmental agencies.
INSTALLATION SERVICES
x Installation Services can only be
purchased when they are in support of
software purchased under this SLP
PLUS contract.
x Installation Services must not exceed
the total cost of the software.
SOFTWARE MAINTENANCE,
SUBSCRIPTION AND SAAS RENEWALS
Software Maintenance, Subscription and
SaaS renewals shall be fixed at the
agencies prior applicable rates (or lower),
with a 0% uplift (no up-lift) and no
additional increases, fees or charges
added, for the duration of this SLP PLUS
contract.
SERVICE CREDITS
Service credits are acceptable only if they
meet the following requirements:
x Service credits must be used for
training, certifications, or support
and must never expire even when
this contract term ends.
x Unused service credits can be used
for other services such as training,
certification, or support. Example: If
$1,000 is purchased in training
credits but is not fully utilized, the
department may use the remainder
of unused credits for certifications or
support.
ISSUE PURCHASE ORDER TO
Agency purchase orders must be mailed to
the following address, e-mailed, or faxed to
916-251-3980:
ePlus Technology, Inc.
233 Technology Way, Suite 5
Rocklin, CA 95765
Attn: Carrie Verbeke
Agencies with questions regarding
products and/or services may contact the
contractor as follows:
Phone: 916-251-3914
E-mail: [email protected]
SHIPPING INSTRUCTIONS
F.O.B. (Free On Board) Destination
DELIVERY
30 days after receipt of order, or as
negotiated between agency and Contractor
and included in the purchase order.
AGENCY RESPONSIBILITY
Agencies must contact contractors to
obtain copies of the contracts and compare
them for a best value purchasing decision.
Each agency is responsible for its own
contracting program and purchasing
decisions, including use of the SLP PLUS
program and associated outcomes.
This responsibility includes, but is not
necessarily limited to, ensuring the
necessity of the services, securing
appropriate funding, complying with laws
and policies, preparing the purchase order
in a manner that safeguards the State’s
interests, obtaining required approvals, and
documenting compliance with Government
Code 19130.b (3) for outsourcing services.
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It is the responsibility of each agency to
consult as applicable with their legal staff
and contracting offices for advice
depending upon the scope or complexity of
the purchase order.
If you do not have legal services available
to you within your agency, the DGS Office
of Legal Services is available to provide
services on a contractual basis.
ORDER REQUIREMENTS AND
MAXIMUM ORDER LIMIT
x Unless otherwise determined by an
individual ordering agency purchasing
authority, no SLP PLUS order may be
executed by a State agency that
exceeds that agency’s purchasing
authority threshold. State agencies with
approved purchasing authority, along
with their dollar thresholds can be
obtained at the List of State
Departments with Approved Purchasing
Authority.
x Agencies must adhere to the detailed
requirements in the State Contracting
Manual (SCM) when using SLP PLUS
contracts. The requirements for the
following bullets are in the SCM, Volume
3, (for IT): If soliciting offers from a
certified DVBE, include the Disabled
Veteran Business Enterprise
Declarations form (Std. 843) in the
Request for Offer. This declaration
must be completed and returned by the
DVBE prime contractor and/or any
DVBE subcontractors. (See the SCM
Volume 3, Chapter 3)
x This is not a bid transaction, so the
small business preference, DVBE
participation goals, protest language,
intents to award, evaluation criteria,
advertising, etc., are not applicable.
x If less than 3 offers are received, State
agencies must document their file with
the reasons why the other suppliers
solicited did not respond with an offer.
x Assess the offers received using best
value methodology, with cost as one of
the criteria.
x Issue a Purchase Order to the selected
contractor.
x For SLP PLUS transactions under
$10,000, only one offer is required if the
State agency can establish and
document that the price is fair and
reasonable. The fair and reasonable
method can only be used for non-
customizable purchases.
Local governments set their own order
limits, and are not bound by the order limits
on the cover page of this contract.
SPLITTING ORDERS
Splitting orders to avoid any monetary
limitations is prohibited.
Do not circumvent normal procurement
methods by splitting purchases into a
series of delegated purchase orders (SAM
3572).
Splitting a project into small projects to
avoid either fiscal or procedural controls is
prohibited (SAM 4819.34).
MINIMUM ORDER LIMITATION
There is no minimum dollar value limitation
on orders placed under this contract.
ORDERING PROCEDURES
1. Order Form
State departments shall use a
Contract/Delegation Purchase Order
(Std. 65) for purchases and services.
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Local governments shall, in lieu of the
State's Purchase Order (Std. 65), use
their own purchase order document.
Electronic copies of the State Standard
Forms can be found at the Office of
State Publishing web site:
http://www.dgs.ca.gov/osp (select
Standard Forms). The site provides
information on the various forms and
use with the Adobe Acrobat Reader.
Beyond the Reader capabilities, Adobe
Acrobat advanced features may be
utilized if you have Adobe Business
Tools or Adobe Acrobat 4.0 installed on
your computer. Direct link to the
Standard Form 65:
(http://www.osp.dgs.ca.gov/pdf/std065.p
df)
2. Purchase Orders
All Ordering Agency purchase order
documents executed under this SLP
PLUS must contain the applicable SLP
PLUS contract number as show on page
1. State Departments:
Std. 65 Purchase Documents –
State departments not transacting
in FI$Cal must use the Purchasing
Authority Purchase Order (Std. 65)
for purchase execution. An
electronic version of the Std. 65 is
available at the DGS-PD website
at http://www.dgs.ca.gov/
pd/Forms.aspx (select Standard
STD Forms).
FI$Cal Purchase Documents –
State departments transacting in
FI$Cal will follow the FI$Cal
procurement and contracting
procedures.
2. Local Governmental Departments:
Local governmental agencies may
use their own purchase document
for purchase execution.
The agency is required to complete and
distribute the order form. For services,
the agency shall modify the information
contained on the order to include the
service period (start and end date), and
the monthly cost (or other intermittent
cost), and any other information
pertinent to the services being provided.
The cost for each line item should be
included in the order, not just system
totals.
The contractor must immediately reject
orders that are not accurate.
Discrepancies are to be negotiated and
incorporated into the order prior to the
products and services being delivered.
3. Service and Delivery after Contract
Expiration
Purchase orders must be issued before
the SLP PLUS contract end term
expires.
Also, purchase order amendments
cannot be issued to add product and
software maintenance if the SLP PLUS
contract end term has expired.
CONTRACT PRICES
Contract prices for products and/or
services are maximums. The ordering
department is encouraged to negotiate
lower prices.
PRODUCT AND PRICING CHANGES
AND/OR UPDATES ARE NOT
AUTHORIZED UNTIL REVIEWED AND
APPROVED BY DGS PROCUREMENT
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DIVISION SOFTWARE LICENSING
PROGRAM.
Said documents are to be sent to the
Department of General Services (DGS)
Procurement Division, Soffware Licensing
Program, 707 Third Street, 2nd Floor, West
Sacramento, CA 95605-2811, Attention
SLP Unit.
CONTRACT EXTENSIONS
The initial term of this SLP contract is 3
years and may be extended for an
additional 2-years, however an amendment
must be issued prior to contract end date.
NOTE: Extensions are optional and are
at the discretion of the state.
SMALL BUSINESS MUST BE
CONSIDERED
Prior to placing orders under the SLP
PLUS, state departments shall, whenever
practicable, first consider offers from small
businesses that have established SLP
PLUS contracts [GC Section 14846(b)].
NOTE: The Department of General
Services auditors will request
substantiation of compliance with this
requirement when department files are
reviewed.
SMALL BUSINESS/DVBE – TRACKING
State departments are able to claim
subcontracting dollars towards their small
business or DVBE goals whenever the
Contractor subcontracts a commercially
useful function to a certified small business
or DVBE. The Contractor will provide the
ordering department with the name of the
small business or DVBE used and the
dollar amount the ordering department can
apply towards its small business or DVBE
goal.
SMALL BUSINESS/DVBE -
SUBCONTRACTING
1. The amount an ordering department
can claim towards achieving its small
business or DVBE goals is the dollar
amount of the subcontract award made
by the Contractor to each small
business or DVBE.
2. The Contractor will provide an ordering
department with the following
information at the time the order is
quoted:
a. The Contractor will state that, as the
prime Contractor, it shall be
responsible for the overall execution
of the fulfillment of the order.
b. The Contractor will indicate to the
ordering department how the order
meets the small business or DVBE
goal, as follows:
x List the name of each company
that is certified by the Office of
Small Business and DVBE
Certification that it intends to
subcontract a commercially
useful function to; and
x Include the small business or
DVBE certification number of
each company listed, and attach
a copy of each certification; and
x Indicate the dollar amount of
each subcontract with a small
business or DVBE that may be
claimed by the ordering
department towards the small
business or DVBE goal; and
x Indicate what commercially
useful function the small
business or DVBE subcontractor
will be providing towards
fulfillment of the order.
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3. The ordering department’s purchase
order must be addressed to the prime
Contractor, and the purchase order
must reference the information provided
by the prime Contractor as outlined
above.
PRODUCTIVE USE REQUIREMENTS
The customer in-use requirement applies
to all procurements of information
technology equipment and software, per
the SCM, Volume 3, Chapter 2, Section
2.B6.2 and SCM, Volume FI$Cal, Chapter
2, Section 2.E3.2.
Each equipment or software component
must be in current operation for a paying
customer and the paying customer must be
external to the contractor’s organization
(not owned by the contractor and not
owning the contractor).
To substantiate compliance with the
Productive Use Requirements, the SLP
PLUS contractor must provide upon
request the name and address of a
customer installation and the name and
telephone number of a contact person.
The elapsed time such equipment or
software must have been in operation is
based upon the importance of the
equipment or software for system
operation and its cost. The following
designates product categories and the
required period of time for equipment or
software operation prior to approval of the
replacement item on SLP PLUS.
Category 1 - Critical Software: Critical
software is software that is required to
control the overall operation of a computer
system or peripheral equipment. Included
in this category are operating systems,
data base management systems, language
interpreters, assemblers and compilers,
communications software, and other
essential system software.
Cost Installation
Final Bid
Submission
More than
$100,000
8 months 6 months
$10,000 up to
$100,000
4 months 3 months
Less than
$10,000
1 month 1 month
Category 2 - All Information Technology
Equipment and Non-Critical Software:
Information technology equipment is
defined in State Administrative Manual
(SAM) § 4819.2.
Cost
Installation
Final Bid
Submission
More than
$100,000
6 months 4 months
$10,000 up
to $100,000
4 months 3 months
Less than
$10,000
1 month 1 month
STATE AND LOCAL GOVERNMENTS
CAN USE THE SLP PLUS
State and local government use of the SLP
PLUS contracts is optional. A local
government is any city, county, special
district or other local governmental body or
corporation, including UC, K-12 schools
and community colleges,
that is empowered to expend public funds.
While the state makes this contract
available, each local government agency
should make its own
determination whether the SLP PLUS is
consistent with their procurement policies
and regulations.
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APPLICABLE CODES, POLICIES AND
GUIDELINES
All California codes, policies and guidelines
are applicable. THE USE OF THE SLP
PLUS DOES NOT REDUCE OR RELIEVE
STATE DEPARTMENTS OF THEIR
RESPONSIBILITY TO MEET STATEWIDE
REQUIREMENTS REGARDING
CONTRACTING OR THE
PROCUREMENT OF GOODS OR
SERVICES. Most procurement and
contract codes, policies, and guidelines are
incorporated into The SLP PLUS contracts.
Notwithstanding this, there is no guarantee
that “every” possible requirement that
pertains to all the different and unique state
processes has been included.
TERMINATION OF SLP PLUS
CONTRACT
1. The State or Contractor may terminate
this SLP PLUS Contract at any time
upon 30 days prior notice.
2. Upon termination or other expiration of
this Contract, each party will assist the
other party in orderly termination of the
Contract and the transfer of all assets,
tangible and intangible, as may
facilitate the orderly, nondisrupted
business continuation of each party.
3. This provision shall not relieve the
Contractor of the obligation to perform
under any purchase order or other
similar ordering document executed
prior to the termination becoming
effective.
STATEWIDE PROCUREMENT
REQUIREMENTS
Departments must carefully review and
adhere to the following Procurement
Requirements, such as:
x SAM Section 4819.41 and 4832
certifications for information technology
procurements and compliance with
policies.
x Services may not be paid for in
advance.
x Departments are required to file with the
Department of Fair Employment and
Housing (DFEH) a Contract Award
Report Std. 16 for each order over
$5,000 within 10 days of award,
including supplements that exceed
$5,000.
x Pursuant to Unemployment Insurance
Code Section 1088.8, state and local
government agencies must report to the
Employment Development Department
(EDD) all payments for services that
equal $600 or more to independent sole
proprietor contractors. See the
contractor's Std. Form 204, Payee Data
Record, in the SLP PLUS contract to
determine sole proprietorship. All
inquiries regarding this subject should
be forwarded to EDD: Technical
questions: 916/651-6945 or Information
and forms: 916/657-0529.
x Annual small business and disabled
veteran reports.
ETHNICITY/RACE/GENDER REPORTING
REQUIREMENT
Effective July 1, 2002, in accordance with
Public Contract Code 10116, state
departments are to capture information on
ethnicity, race, and gender of business
owners (not subcontractors) for all
awarded contracts, including CAL-Card
transactions. Each department is required
to independently report this information to
the Governor and the Legislature on an
annual basis.
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SOFTWARE LICENSING PROGRAM (SLP PLUS)
EPLUS TECHNOLOGY, INC.
9-21-70-0002C
BUILDING GREEN • BUYING GREEN • WORKING GREEN 10
Departments are responsible for
developing their own guidelines and forms
for collecting and reporting this information,
Contractor participation is voluntary.
PAYMENTS AND INVOICES
1. Payment Terms
Payment will be made in accordance
with the provisions of the California
Prompt Payment Act, Government
Code Section 927 et. seq. Unless
expressly exempted by statute, the
Act requires State agencies to pay
properly submitted, undisputed
invoices not more than 45 days after
(i) the date of acceptance of goods or
performance of services; or (ii) receipt
of an undisputed invoice, whichever is
later.
2. Advance Payments
Advance payment is allowed for
services only under limited, narrowly
defined circumstances, e.g. between
specific departments and certain
types of non-profit organizations, or
when paying another government
agency (Government Code (GC) §
11256 – 11263 and 11019).
It is NOT acceptable to pay in
advance, except software
maintenance and license fees, which
are considered a subscription and
may be paid in advance if a provision
addressing payment in advance is
included in the purchase order.
Software warranty upgrades and
extensions may also be paid for in
advance, one time.
3. Payee Data Record (Std. 204)
State Agencies not transacting in
FI$Cal, must obtain a copy of the
Payee Data Record (Std. 204) in
order to process payments. State
Ordering Agencies forward a copy of
the Std. 204 to their accounting
office(s). Without the Std. 204,
payment may be unnecessarily
delayed. State Agencies should
contact the Contractor for copies of
the Payee Data Record
4. DGS Administrative and Incentive
Fees
Orders from State Agencies:
The Department of General Services
(DGS) will bill each State agency
directly an administrative fee for use
of SLP PLUS contracts. The
administrative fee should NOT be
included in the order total, nor
remitted before an invoice is received
from DGS.
5. Credit Card
ePlus Technology, Inc. accepts the
State of California credit card (CAL-
Card).
A Purchasing Authority Purchase
Order (Std. 65) is required even when
the ordering department chooses to
pay the contractor via the CAL-Card.
Also, the DGS administrative fee is
applicable for all SLP PLUS orders to
suppliers not California certified as a
small business.
FEDERAL DEBARMENT
When federal funds are being expended,
the department is required to obtain (retain
in file) a signed “Federal Debarment”
certification from the contractor before the
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SOFTWARE LICENSING PROGRAM (SLP PLUS)
EPLUS TECHNOLOGY, INC.
9-21-70-0002C
BUILDING GREEN • BUYING GREEN • WORKING GREEN 11
purchase order is issued. This
certification is required by the regulations
implementing Executive Order 12549,
Debarment and Suspension, 29 CFR Part
98, Section 98.510, Participants;
responsibilities. The regulations were
published as Part VII of the May 26, 1988
Federal Register (pages 19160-19211).
AMERICANS WITH DISABILITY ACT
(ADA)
(See attachment B)
DGS PROCUREMENT DIVISION
CONTACT AND PHONE NUMBER
Department of General Services
Procurement Division, SLP Unit
707 Third Street, 2nd Floor
West Sacramento, CA 95605-2811
Phone no.:
916/375-4365
Faxination no.: 916/376-6371
220
Updated 7/2019
ATTACHMENT A
SLP PLUS QUARTERLY BUSINESS ACTIVITY REPORT
Company Name:
Publisher:
For Questions Regarding this Report:
E-mail:
Reporting Calendar Year:
Reporting Quarter: Q1 (January to March)
Q2 (April to June)
Q3 (July to September)
Q4 (October to December)
Check Here if No New Orders for This Quarter F
STATE GOVERNMENT AGENCY PURCHASES
State Agency
Name
Purchase
Order Number
Purchase
Order Date
Agency
Billing Code
Total Dollars
Per Purchase
Order
Agency Contact Agency Address Phone
Number
Total State Agency Dollars Reported for Quarter: $
LOCAL GOVERNMENT AGENCY PURCHASES
Local Government Agency
Name
Purchase Order
Number
Purchase
Order Date
Total Dollars Per
Purchase Order
Agency
Contact Agency Address Phone
Number
Total Local Government Agency Dollars for Quarter: $
1.25% Remitted to DGS (does not apply to CA certified Small Businesses): $
Total of State and Local Government Agency Dollars Reported for this Quarter: $
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ATTACHMENT A
SLP PLUS QUARTERLY BUSINESS ACTIVITY REPORT
Procurement Division | State of California | California Government Operations Agency 707 3rd Street, 2ndFloor | West Sacramento, CA 95605 | t 916.375-4400 Instructions for completing the SLP PLUS Quarterly Business Activity Report.
1. Complete the top of the form with the appropriate information for your company.
2. Agency Name - Identify the State agency or Local Government agency that issued the order.
3. Purchase Order Number - Identify the purchase order number (and amendment number if applicable) on the order form. This is not your invoice number. This is the number the State agency or Local Government agency assigns to the order.
4. Purchase Order Date - Identify the date the purchase order was issued, as shown on the order. This is not the date you received, accepted, or invoiced the order.
5. Agency Billing Code - Identify the State agency billing code. This is a five-digit number identified on the upper right hand corner of the Std. 65 purchase order form.
You must identify this number on all purchases made by State of California agencies.
Billing codes are not applicable to Local Government agencies.
6. Total Dollars Per PO - Identify the total dollars of the order excluding tax and freight.
Tax must NOT be included in the quarterly report, even if the agency includes tax on the purchase order. The total dollars per order should indicate the entire purchase order amount (less tax and freight) regardless of when you invoice order, perform services, deliver product, or receive payment.
7. Agency Contact - Identify the ordering agency’s contact person on the purchase order.
8. Agency Address - Identify the ordering agency’s address on the purchase order.
9. Phone Number - Identify the phone number for the ordering agency’s contact person.
10. Total State Sales & Total Local Sales - Separately identify the total State dollars and/or Local Government agency dollars (pre-tax) for all orders placed in quarter.
11. 1.25% Remitted to DGS - Identify 1.25% of the total Local Government agency dollars reported for the quarter.
12. Grand Total - Identify the total of all State and Local Government agency dollars reported for the quarter.
Notes:
x A report is required for each SLP contract each quarter even when there are no new orders for the quarter.
x Quarterly reports are due two weeks after the end of the quarter.
222
Updated 2/06/2018 14
ATTACHMENT B
ADA NOTICE
Procurement Division (State Department of General Services)
AMERICANS WITH DISABILITIES ACT (ADA) COMPLIANCE
POLICY OF NONDISCRIMINATION ON THE BASIS OF DISABILITY
To meet and carry out compliance with the nondiscrimination requirements of the Americans With Disabilities Act (ADA), it is the policy of the Procurement Division (within the State Department of General Services) to make every effort to ensure that its programs, activities, and services are available to all persons, including persons with disabilities.
For persons with a disability needing a reasonable accommodation to participate in the Procurement process, or for persons having questions regarding reasonable accommodations for the Procurement process, please contact the Procurement Division at (916) 375-4400 (main office); the Procurement Division TTY/TDD (telephone device for the deaf) or California Relay Service numbers which are listed below. You may also contact directly the Procurement Division contact person who is handling this procurement.
IMPORTANT: TO ENSURE THAT WE CAN MEET YOUR NEED, IT IS BEST THAT WE RECEIVE YOUR REQUEST AT LEAST 10 WORKING DAYS
BEFORE THE SCHEDULED EVENT (i.e., MEETING, CONFERENCE,
WORKSHOP, etc.) OR DEADLINE DUE-DATE FOR PROCUREMENT
DOCUMENTS.
The Procurement Division TTY telephone numbers are:
Sacramento Office:
(916) 376-1891
Fullerton Office: (714) 773-2093
The California Relay Service Telephone Numbers are:
Voice: 1-800-735-2922 or 1-888-877-5379
TTY: 1-800-735-2929 or 1-888-877-5378
Speech-to-Speech: 1-800-854-7784
223
Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 22-0277 Agenda Date: 7/18/2022 Agenda #: 10.
Agenda Item Wording:
Approve the Citizens Advisory Committee’s recommendation to appoint Miguel Salgado to fill a vacant position on the Citizens Advisory Committee. In addition, reappoint Frank Ruiz for a third term of service.
Deadline for Action: 7/18/2022
Submitting Department: Administration
Contact Name and Phone Number:
Luma Fahoum, Police Captain, [email protected], 713-4103 Jason Serpa, Public Works Manager, [email protected], 713-4533 Department Recommendation:
Approve the Citizens Advisory Committee’s recommendation to appoint Miguel Salgado to fill a vacant position on the Citizens Advisory Committee. In addition, reappoint Frank Ruiz for a third term of service.
Summary:
The Citizens Advisory Committee (CAC) consists of 11 members. Recently, staff has received the resignation of Dustin Johnson one year before his term was over and Carla Calhoun did not seek reappointment for a third term. Along with Darin McCall’s earlier resignation, there are currently three (3) vacancies on the committee. In order to fill vacancies, the CAC reviews applications, interviews the candidates, and recommends appointments to City Council.
The CAC interviewed Miguel Salgado at the June 1, 2022 meeting and unanimously recommended to appoint Mr. Salgado as a committee member.
Frank Ruiz has served on the CAC since July of 2018 and is seeking reappointment for his third and final term. For the last two fiscal years, Mr. Ruiz has served as Chair of the Committee.
Background Discussion:
The CAC meets monthly for a variety of purposes including:
§ Annually review the City’s use of the Measure T Public Safety Sales Tax, commenting on the City’s certified budget and the outside auditor’s review of monies spent. § Provide two members to sit on the Measure N Oversight Committee. § Provide training, review, and recommendations to Council for the distribution of non-profit youth grants.
§ Annually conduct a public opinion survey of Visalia residents’ satisfaction with city services. § Provide input on the City’s use of Community Development Block Grants (CBDG) and other Visalia City Council Printed on 7/14/2022Page 1 of 3
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File #: 22-0277 Agenda Date: 7/18/2022 Agenda #: 10.
programs from Housing and Urban Development (HUD).
§ Annually provide feedback to Council with regards to the proposed new and or increased fees and rates.
Applicant:
Miguel Salgado has been a resident of Visalia for 10 years. Since being honorably discharged from the Marine Corps after 12 years of service, Mr. Salgado has supervised the mechanical maintenance at JB Hunt Transport. Mr. Salgado also comes with experience of serving on the board of the Sequoia Softball League
and he looks forward to directly being involved and assisting in City goals. While being a part of local government, he hopes that this appointment will be an opportunity for him to grow and learn about civic work. Mr. Salgado has been married for 6 years and has two daughters that are very involved in outdoor activities including hiking.
If the recommended appointment of Miguel Salgado and reappointment of Frank Ruiz is approved by Council, the 11-member committee will be made up of the following members listed in the chart below:
CITIZENS ADVISORY COMMITTEE
Meetings held the 1st Wednesday of each month at 5:30pm at City Admin. Bldg; 220 N. Santa Fe St.
Staff Rep: Jason Serpa and Luma Fahoum; Members: 11 Members - 2-year term length/3 max. terms.
1. Jones, Ed - 1st term: 7/2022 - 6/2024
2. Curtis, George - 1st term: 7/2021 - 6/2023
3. Stewart, Glen - 1st term: 7/2021 - 6/2023
4. VACANT - UET: 7/2021 - 6/2023
5. Deniston-Sheets, Holly - 1st term: 7/2021 - 6/2023
6. Ruiz, Frank - 1st term: 7/2018-6/2020; 2nd term: 7/2020-6/2022; 3rd term 7/2022-6-2024
7. Wall, Mark - 1st term: 10/2021 - 6/2023
8. VACANT - 1st term: 7/2022 - 6/2024
9. Lopez, Juan - 1st term: 7/2022 - 6/2024
10. Salgado, Miguel - UET: 7/2021 - 6/2023
11. Pierce, Kelly - 1st term: 10/2021 - 6/2023
Fiscal Impact:
N/A
Prior Council Action: Council has historically affirmed the recommendations of the Citizens Advisory Committee related to the appointment and reappointment of new members.
Other: N/A
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File #: 22-0277 Agenda Date: 7/18/2022 Agenda #: 10.
Alternatives: N/A
Recommended Motion (and Alternative Motions if expected):
Approve the Citizens Advisory Committee’s recommendation to appoint Miguel Salgado to fill a vacant position on the Citizens Advisory Committee and reappoint Frank Ruiz for a third and final term.
Environmental Assessment Status: N/A
CEQA Review: N/A
Attachments: Citizens Advisory Committee application for Miguel Salgado.
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Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 22-0279 Agenda Date: 7/18/2022 Agenda #: 11.
Agenda Item Wording:
Authorize the City Manager to award a contract with Mintier Harnish for an amount not to exceed $394,747 for the preparation of an update to the City of Visalia Housing Element, including optional tasks of updating the Safety Element and preparing an Environmental Justice Element.
Deadline for Action: 7/18/2022
Submitting Department: Community Development
Contact Name and Phone Number:
Brandon Smith, Principal Planner, 713-4636, [email protected] Paul Bernal, Community Development Director City Planner, 713-4025, [email protected] Department Recommendation:
Staff recommends that the City Council authorize the following:
1. Authorize the City Manager to execute a contract with Mintier Harnish in an amount not to exceed $394,747 for preparation of these tasks as outlined in the Scope of Work (attached as Exhibit “A”);
2. Authorize staff to create a Technical Advisory Committee (TAC). Staff has consulted with Mintier Harnish on the contract amount and scope of work and has determined there is a cost savings benefit in utilizing public outreach for both the Housing Element and Environmental Justice Element while maintaining an accelerated timeline (estimated completion in December 2023) for the project.
Background Discussion:
State housing law mandates that all California jurisdictions maintain and regularly update a general plan housing element and that the element be approved by the State Department of Housing and Community Development on a set schedule approximately once every eight years. The purpose of the housing element is to identify the community’shousing needs, to state the community’sgoals and objectives with regards to housing production, rehabilitation, and conservation to meet those needs, and to define the policies and programs that the community will implement to achieve the stated goals and objectives.
Visalia’s“5th cycle”Housing Element was adopted in 2016 and covered the 5th cycle planning period from 2015-2023. A mid-cycle update was also completed and adopted in 2019. The upcoming “6th cycle”Housing Element will cover a planning period from December 31, 2023 to December 31, 2031.
Staff anticipates that the update process guided by a consultant will require 16 months to complete, based on scientifically increased reporting requirements in the 6th cycle.
The Housing Element Update original budget was $165,000 with $155,000 allocated for Plan / Visalia City Council Printed on 7/14/2022Page 1 of 4
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File #: 22-0279 Agenda Date: 7/18/2022 Agenda #: 11.
The Housing Element Update original budget was $165,000 with $155,000 allocated for Plan / Consultant (LEAP Grant) and $10,000 for Design / Staff Time from the General Fund. Staff circulated a Request For Proposals in April 2022 to find a consultant for the Update, but during the RFP circulation learned that significantly more budget was necessary to land a consultant due to the increased reporting requirements, and the current demand for such consultants. That RFP circulation ultimately resulted in zero responses.
On May 16, 2022, staff asked Council to authorize the City to accept and authorize additional funding through the Regional Early Action Planning (REAP) grant to be additionally utilized for the Housing Update. With the combined grant monies of $396,000, staff was able to reach out to consultants directly and ask for proposals. Staff reached out to approximately eight consultants, of which one (Mintier Harnish) submitted a proposal for service. Of the remaining consultants who were contacted, four did not provide responses and three replied that they were too busy with Housing Element Updates in other California regions to allocate time for Visalia’s Update.
The reasons for the use of a consultant are primarily twofold. First, it allows for a professional consultant who is experienced with and specializes in the practice of Housing Element Updates and is knowledgeable of the latest state requirements for addressing Affirmatively Furthering Fair Housing (AFFH) requirements and the increased criteria for identifying housing inventory sites. Without a consultant, significantly more staff time (estimated 1.5 or more full time equivalent staff persons) would need to be dedicated to learning the requirements of and preparing an Update. With a consultant, staff estimates that 0.5 full time equivalent staff persons will be needed to manage consultant-led work and outreach. In either case, other City staff - primarily Planning Division staff and the City Housing Specialist - will be called upon throughout the Update to conduct research and provide data to the consultant. Second, the use of a consultant will allow the Planning Division to continue dedicating its staff toward the processing of other advanced planning projects (i.e. ADU ordinance update, residential design standards) as well as residential and non-residential development projects without significant interruption.
Staff considers Mintier Harnish, founded in 1985 and based in Sacramento, as a leading authority in the understanding of housing element updates as well as the preparation of general plans and zoning codes in California. Jim Harnish, Project Director for Mintier Harnish, was the primary author of Visalia’s “4th cycle” Housing Element Update adopted in 2010, which was Visalia’s last Housing Element Update to be prepared by a consultant. Mintier Harnish has submitted in association with Rincon Consultants, Inc, founded in 1994 with locations in San Luis Obispo and Sacramento, who will provide lead and advisory duties on certain aspects of the project, namely the AFFH component, sites inventory, and the safety element. Mintier Harnish staff will oversee the overall project work scope, including community engagement and outreach (including leading TAC meetings and stakeholder interviews), interaction with State Housing and Community Development (who provides final certification to the element), and presentation to the Planning Commission and City Council.
The consultant’swork scope, schedule, and cost estimate are contained herein (see Exhibits “A”,“B”, and “C”).Staff has consulted with Mintier Harnish on the contract amount and scope of work and has determined there is a cost savings benefit in utilizing public outreach for both the Housing Element and Environmental Justice Element while maintaining an accelerated timeline (estimated completion in December 2023) for the project.
Housing Element Scope of Work & Technical Advisory Committee:
Mintier Harnish’sproposed work schedule envisions commencing work immediately in August 2022 Visalia City Council Printed on 7/14/2022Page 2 of 4
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Mintier Harnish’sproposed work schedule envisions commencing work immediately in August 2022 and submitting a draft ordinance within approximately 12 months to HCD and receiving final adoption from the City Council by December 2023 (HCD Estimated Due Date for jurisdictions within the Tulare County Association of Governments is December 31, 2023).
The consultant’swork scope (Exhibit “A”)notes that all public hearings and study sessions of the City Council / Planning Commission and all community workshops will have in-person representation from the consultant. Virtual meetings are anticipated for Technical Advisory Committee meetings and stakeholder interviews.
As part of the update, a Technical Advisory Committee (TAC) will be assembled with input and guidance from the consultant. Similar to the TAC assembled for the 2015 and 2019 Updates, which included a 10-member panel, it would be comprised at minimum a nonprofit / affordable homebuilder, homeless and disadvantaged service providers, real estate representatives, building and construction representatives, and at least one Planning Commissioner.
Upon entering into a contract, the consultant will begin working with City staff to finalize a community engagement strategy, project website and online engagement, project logo and branding package, and preparation of initial newsletter. The TAC will be formed and will hold its first meeting. An initial study session with the City Council and/or Planning Commission will present a project overview, establish expectations of the TAC, and receive priorities and concerns of the Council / Commission.
Between September and December 2022, the consultant team will conduct review of available housing sources, including the City’s2019 Update, and will conduct the Sites Inventory. Outreach will include stakeholder interviews, the first of three community workshops, the second of three TAC meetings and a possible study session with the City Council and/or Planning Commission.
Between January and March 2023, the Existing Housing Needs Analysis, Housing Resources and Opportunities, Housing Constraints, and policies and program sections will be completed.
By May 2023, a Public Review Draft Housing Element will be released for a minimum required 30- day public comment period. Public review will include the release of a newsletter and a study session with the City Council and/or Planning Commission.
The Draft Housing Element will be submitted to HCD in June 2023 and the agency has up to 90 days to review the Element. Mintier Harnish will prepare responses to HCD comments, provide to staff for review, and incorporate responses into a Public Hearing Draft Housing Element that will go to Planning Commission and City Council for official review.
Safety Element: In addition to the regularly-scheduled update to the Housing Element, state law requires all cities to include climate adaptation and resiliency strategies in the Safety Element of the General Plan. The Safety Element, unlike the objectives of the Housing Element, focuses on the comprehensive strategy to reduce both short-term and long-term potential for harm from various threats to community health and safety. SB 1035 (2018) aligns the update of the Safety Element with a jurisdiction’snext Housing Element Update. Visalia last updated its Safety in 2014 as part of the General Plan Update. Mintier Harnish’scost estimate (Exhibit “C”)is $70,000 for the Safety Element Update, with Rincon staff taking lead on the element update.
Upon entering into a contract, the consultant team will begin working with City staff to conduct a vulnerability assessment (identifying and mapping critical assets that could be exposed to climate hazards), AB 747 analysis, SB 99 analysis, and assessment of the existing Safety Element to ensure compliance with current state law. The consultant team will review a Public Review Draft Element with the Technical Advisory Committee (combined with the TAC meeting pertaining to the Visalia City Council Printed on 7/14/2022Page 3 of 4
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with the Technical Advisory Committee (combined with the TAC meeting pertaining to the Environmental Justice; see below) and will present it in a community workshop prior to the review and adoption by the Planning Commission and City Council.
Environmental Justice Element: State law (SB 1000, 2016) further requires that when two or more general plan elements are simultaneously updated, the general plan must be updated to incorporate environmental justice policies. This would be accomplished in the form of a new Environmental Justice Element.
Upon entering into a contract, the consultant team will begin working with City staff to address disadvantaged communities and areas of concern consistent with the requirements of SB 535 and to develop goals, polices, and implementation programs in the areas of racial, social, and environmental justice and civic engagement in the public decision-making process. The consultant team will review a Public Review Draft Element with the Technical Advisory Committee (combined with the TAC meeting pertaining to the Environmental Justice; see below) and will present it in a community workshop prior to the review and adoption by the Planning Commission and City Council.
Fiscal Impact:
The consultant services are funded by two approved grants awarded by the State of California under the Regional Early Action Planning (REAP) in the amount of $241,000 and Local Early Action Planning (LEAP) in the amount of $155,000 for a total of $396,000. In addition, this project has $10,000 budgeted from the General Fund for “Design/ Staff Time”to cover anticipated costs for City Attorney fees, public hearing noticing, and public workshop costs. The project will require staff time from existing in-house City staff to manage the consultant and assist with providing data.
Prior Council Action: May 16, 2022: Council accepted and appropriated funding for the REAP grant for the Housing Element update in an amount not to exceed $241,000. April 4, 2022: Council accepted and appropriated funding for the REAP grant for the Housing Element update in an amount not to exceed $246,000, including $155,000 budgeted for the Housing Element.
Alternatives: N/A
Recommended Motion (and Alternative Motions if expected):
I move to:
1. Authorize the City Manager to execute a contract with Mintier Harnish in an amount not to exceed $394,747 for preparation of tasks as outlined in the Scope of Work (attached as Exhibit “A”);
2. Authorize staff to create a Technical Advisory Committee (TAC).
Environmental Assessment Status: No environmental assessment required at this time. The adoption of the updated Elements will require CEQA documentation to be completed by City staff.
CEQA Review: Not at this time. The adoption of the updated Elements will require CEQA documentation to be completed by City staff.
Attachments: Exhibit “A” - Scope of Work; Exhibit “B” - Schedule; Exhibit “C” - Budget (Fees & Hours)
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City of Visalia HEU
Work Scope 7 July 6, 2022
City of Visalia
Housing, Safety, and Environmental Justice Element Updates Work Scope
Phase 1 Project Initiation
The Consultant will work in close collaboration with City staff to refine the project work plan, schedule, and community engagement program. The Consultant will develop a project website, logo/and branding, get initial direction from the Planning Commission and City Council, and publish a newsletter to inform the community about the project.
Task 1.1 Project Kick-off Meeting
The Consultant will facilitate a project kick-off meeting (possibly using Zoom or other online platform) with City staff. During this meeting, the Consultant will work with City staff to accomplish the following:
• Review the work scope and schedule.
• Establish communication protocols, including monthly status reporting, project status coordination calls, and conference call/online video call protocols. • Determine a typical review schedule needed by City staff for draft work products. • Review and discuss overall organization of the Housing Element Update. • Discuss data resources, approach, and methodology for the housing sites analysis. • Discuss critical housing issues and the City’s existing Housing Element. • Discuss the Safety and Environmental Justice Element requirements. • Discuss the community engagement strategy, City staff and Consultant roles and responsibilities, and formation of the Housing and Safety Technical Advisory Committees.
• Identify informational sources and available GIS mapping data, including its level of accuracy, status, and most recent updates.
• Determine consultation and coordination with appropriate governmental agencies.
Following the Kick-off meeting the Consultant will join a City staff-led City tour to familiarize the Team with this City structure, examples of housing successes and challenges, high- and low- resource neighborhoods, and environmental justice and safety related issues.
Task 1.2 Community Engagement Strategy
Based on input from City staff at the kick-off meeting, the Consultant will finalize the details of the comprehensive community engagement strategy. The strategy will describe engagement methods, responsibilities, and publicity protocols. The Consultant will structure the strategy to 233
City of Visalia HEU
Work Scope 8 July 6, 2022
be inclusive of all those who make up the “community,” including residents; workers; businesses; property owners; developers and residential builders; educational institutions; civic, community, and non-profit organizations; religious, social, cultural, and ethnic Committees; and public agencies. In addition to being inclusive, the goal is to create meaningful opportunities for involvement throughout the preparation of the Housing and Safety Element Updates.
Task 1.3 Project Branding and Logo
The Consultant will develop a branding package for the Housing Element Update. The branding package will include a project logo and style templates for all work products, maps, and publicity materials to build enthusiasm about the project and ensure that this effort is distinct in the minds of the community. The Consultant will give the City up to three options from which to choose a branding package.
Task 1.4 Website and Online Engagement
The Consultant will develop an interactive, informational website, or page on the City’s website, for the Housing Element Update to provide an easy-to-use tool for residents to stay informed during the Update process. The website will provide project information, access to all materials developed for the project, and an access point for online engagement tools for polling and idea generation. This will provide access to virtual meetings that can support those that cannot attend events due to personal circumstances or public health restrictions. The Consultant will regularly update the online engagement tools with new questions, surveys, opinion polls, and geographic mapping tools.
Task 1.5 Newsletter #1: Housing, Safety, and Environmental Justice Element Update Overview
The Consultant will prepare a newsletter that describes what the housing, safety, and environmental justice elements are, how and why they are being updated, the project schedule, and how to get involved in the process. The Consultant will also include a section on State housing, safety, and environmental justice element law FAQs. The newsletter will publicize upcoming community engagement opportunities and the first on-line engagement tools.
Task 1.6 Housing Technical Advisory Committee Meeting #1 The Consultant will assist City staff with facilitating the first Housing Technical Advisory Committee (HTAC) meeting. The meeting will include a discussion of the HTAC organization and meeting protocols. The Consultant will present an overview of the project and schedule and get input and direction on member expectations for the project. The Consultant will use the opportunity to discuss housing issues and gain an understanding of the Committee members’ housing-related priorities and concerns. This will be a virtual meeting via Zoom or other on-line technology.
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City of Visalia HEU
Work Scope 9 July 6, 2022
Task 1.7 Planning Commission and City Council Joint Study Session The Consultant will facilitate a Joint Study session with the Planning Commission and City Council to present an overview of the project and schedule and get input and direction on their expectations for the project. The Consultant will introduce the HTAC members and ask the Commission and Council to express to the Committee their expectations for the Committee’s work. The Consultant will use the opportunity to discuss housing, safety, and environmental justice issues and gain an understanding of the Commissioners’ and Councilmembers’ priorities and concerns.
Phase 1 Deliverables:
• Stakeholder and community contact list (digital; Excel, pdf) • Community engagement strategy (digital; Word, pdf)
• Project logo and branding package (digital; pdf)
• The Website and online engagement (digital)
• Newsletter #1 (Digital; InDesign, pdf)
• Joint Study Session PowerPoint presentation (digital; PowerPoint, pdf) Phase 2 Housing Policy Analysis and Alternatives
The Consultant will review relevant portions of available resources including various codes, standards, and policies maintained by the Community Development Department, the general plan and EIR, specific plans/area plans, and any other relevant documents. Additional information will be provided by the City, including the City’s updated sites inventory and development status information and City GIS data layers. The Consultant also anticipate the use of regional planning documents such as the TCAG 2022 RTP/SCS. Additional data or document needs will be assessed and discussed with the City to determine how the information is best accessed and/or shared. The Consultant will also include an analysis of the effectiveness of programs to address the needs of the unhoused population per AB 139.
Task 2.1 Community Workshop #1: Housing Concerns and Needs The Consultant will facilitate a virtual community workshop. The Consultant will design this event to engage residents and stakeholders throughout the city. The workshop will provide a common understanding of the purpose of the Housing Element Update, key steps in the process, and seek public input on housing issues and distinct economic, social, and geographic housing needs.
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Task 2.2 Stakeholder Interviews
The Consultant will facilitate up to 12 one-hour stakeholder interviews. The Consultant will work with the City to identify participants and provide contact information for the stakeholder interviews. The Consultant will coordinate interview times with participants. The Consultant will provide summary of the stakeholder interview results. The stakeholder interviews will be conducted as virtual meetings via Zoom or other on-line technology.
Task 2.3 Review and Evaluate Current Housing Element
As an initial task to the Housing Element update, and following the kickoff meeting, we will review and evaluate the 2019-2023 Housing Element. Specifically, we will:
• Discuss the effectiveness and continued appropriateness of current housing programs and policies
• Evaluate the City’s progress in meeting current goals • Identify any barriers to achieving identified goals
• Review compliance with new State laws
• Identify potential revisions to existing programs
The City’s latest Housing Element Annual Progress Report would be a good starting point for this evaluation. The Consultant will interview staff and compile additional information to provide an assessment of the continued appropriateness of existing programs and whether new programs should be added to address emerging trends and issues. Upon completion of this review, we will provide a memorandum summarizing our findings. The Consultant will also develop a recommended format and draft outline for the Housing Element Update.
Task 2.4 Sites Inventory
Although the RHNA Methodology for TCAG jurisdictions has not yet been finalized, a draft version identifies over 10,000 housing units to be accommodated by Visalia as part of their 6th Cycle Housing Element. For the 6th cycle, it will be imperative to take into consideration the following adequate site requirements under new housing element laws:
• No net loss of capacity when sites are developed
• Continued ability to meet the RHNA by income category • Stringent standards for assessing feasibility when reusing vacant and underutilized sites that have previously been included in the 5th Cycle Multi-Jurisdictional Housing Element • Demonstrated trends of development
AB 1397 (Adequate Sites) and SB 166 (No Net Loss) impose stringent requirements on the sites inventory for RHNA, and sites that were used in the 5th Cycle Housing Element will be subject to additional scrutiny. To accommodate new legislation and requirements, additional 236
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justification is required to demonstrate that these sites are suitable and available. This may need to include:
• Lot consolidation potential
• Feasibility of development on smaller sites
• Impediments for residential development on non-vacant sites, if any • Recent development on similar sites
• Substantial evidence the existing use is likely to be discontinued within the planning period
Following the analysis of available sites, the Consultant will prepare a web mapping portal that will be used to share online, interactive maps with each jurisdiction. Static maps can be created from this portal, and the information will be used to populate a sites inventory using HCD’s current worksheet format and template. The Consultant will provide an expanded analysis of the sites inventory including development trends that justify the inclusion of vacant and non- vacant sites. The Consultant assume one round of review on the initial information presented in the web portal and sites inventory (Excel format).
Task 2.5 Housing Technical Advisory Committee Meeting #2 The Consultant will assist City staff with facilitating a HTAC meeting to discuss the results of the vacant and underutilized sites assessment. The Consultant will review our methodology, present our findings, discuss the implications for rezoning and the CEQA assessment, and discuss options. This is likely to be a virtual meeting via Zoom or other on-line technology.
Task 2.6 Community Workshop #2: Vacant and Underutilized Sites Assessment The Consultant will facilitate a virtual community workshop on results of the vacant and underutilized sites assessment. The Consultant will conduct a webinar to review our methodology, present our findings, describe the implications for rezoning, and layout options.
The Consultant will then facilitate a question-and-answer session and small group breakouts to discuss the siting solutions presented. The Consultant will also provide an on-line community opinion survey in conjunction with the workshop based on the sites assessment to provide an additional opportunity for community input. The survey will remain on the website for two to three weeks to assure full community participation. The Consultant will summarize the results of the input received. 237
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Task 2.7 Planning Commission and City Council Joint Study Session The Consultant will facilitate a joint study session with the Planning Commission and City Council to discuss the results of the sites inventory, community discussion, stakeholder interviews, opinion survey, and HTAC meetings on the sites inventory. The Consultant will solicit ideas and direction from the Commission and Council about how to address community concerns and the sites inventory as we initiate preparation of the Housing Element. The Consultant will also present a progress report on the Safety and Environmental Justice Elements and facilitate a discussion on findings to date.
Phase 2 Deliverables
• 2019-2023 Housing Element evaluation (digital; Word, pdf) • ArcGIS Online Website mapping portal (on-line)
• Stakeholder Interviews summary (digital: Work, pdf)
• On-line opinion survey (on-line)
• Opinion survey results summary (digital: Word, pdf)
• Final sites inventory in HCD-approved format to be included as an Appendix to the Housing Element (digital; Excel, pdf)
Phase 3 Administrative Draft Housing Element
Task 3.1 Existing Housing Needs Analysis
The Existing Housing Needs Analysis is a comprehensive evaluation of current demographic, employment, housing, and housing market conditions and trends. The Consultant will use this section as the basis for determining the existing unmet housing needs in Visalia. This analysis will include the following topic areas:
Demographic Profile and Employment Profile. This section establishes “baseline” population and employment characteristics for the city, including population growth trends, age characteristics, race and ethnicity, income, and local employment trends, as well as population and employment projections.
Household Characteristics and Housing Stock. The Consultant will use recent data sources to update the description of the existing housing stock in terms of housing stock growth and composition, vacancy rates, housing age and conditions, and overcrowding. The Consultant will also describe housing cost burdens and the ability of households of different income levels to pay for housing. The Consultant will describe current housing market trends, home sale prices, and rental rates using recent data sources (e.g., DataQuick, Zillow, CalREALTORS records) and based on conversations with local realtors.
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Special Needs Housing Analysis. The Consultant will update the analysis of housing needs for special needs populations, including senior households, persons with disabilities, large families, single female-headed households, farmworkers, seasonal workers, extremely low-income households, and persons in need of emergency shelter.
Fair Housing. The Consultant will prepare an assessment of fair housing practices in each jurisdiction. In 2018, the California State Legislature passed AB 686 to expand upon fair housing requirements and protections outlined in the Fair Employment and Housing Act (FEHA). The law requires public agencies to address fair housing disparities and patterns of segregation in housing element updates prepared on or after January 1, 2021, to foster more inclusive communities. To address AB 686, the Consultant will analyze fair housing enforcement and outreach, integration and segregation patterns and trends, racially and ethnically concentrated area of poverty, disparities in access to opportunities, and disproportionate housing need, consistent with HCD’s AFFH Guidance for All Public Entities and for Housing Elements (April 2021). The Consultant will describe Visalia’s fair housing needs, including a discussion on how the proposed sites inventory promotes fair housing, and will develop meaningful actions that the City can implement to further fair housing issues in the community. The Consultant have assumed two rounds of review by the City, with one set of consolidated comments provided by City staff following each round of review. Rincon’s analysis will ultimately be included as an appendix to the Housing Element.
Task 3.2 Housing Resources and Opportunities
The Housing Resources and Opportunities section will include a description of the City’s 2023- 2031 RHNA from TCAG. This analysis will examine the resources and opportunities available for the development, rehabilitation, and preservation of housing. It will include an inventory and analysis of the land resources (i.e., vacant and underutilized sites), as well as the financial and administrative resources available to support housing activities.
Units Approved, Built, or Under Construction. A jurisdiction is allowed to count units that are approved, built, or under construction as of the beginning of the projection period, or completed after that date, but before Housing Element adoption, against its RHNA and calculate the remaining housing need. The Consultant will count any of these units against the RHNA and calculate the remaining housing need.
Adequacy of Public Facilities and Services. The Consultant will prepare an assessment of the adequacy of water and wastewater infrastructure to meet existing and future housing needs, based on information from local water and wastewater master plans, specific plans, and City staff input.
Inventory of Financial and Administrative Resources. The Consultant will describe local, State, and Federal financial and administrative resources available to help the City implement its housing programs.
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Energy Conservation Opportunities. The Consultant will describe opportunities for energy conservation, including the City’s existing General Plan policies that promote energy conservation, and alternative energy and green building measures. The Consultant will also describe local energy conservation programs, such as weatherization and rebate programs provided by local utility companies.
Task 3.3 Housing Constraints
The Consultant will review and update the analysis of both governmental and non- governmental constraints, such as land and development costs, site constraints, existing or planned infrastructure, land use controls, building code regulations, fees, and permit and processing procedures. The Consultant will also analyze constraints on housing for persons with disabilities, as well as the City’s current permitting procedures for emergency shelters, transitional and supportive housing, and single-room occupancy units. The Consultant will update this section to address the current economic climate, and housing market. The housing constraints analysis will also document local efforts to remove governmental constraints to improve the City’s ability to meet its share of the regional housing needs and satisfy the requirements of the Government Code Section 65583 et seq.
Task 3.4 Administrative Review Draft Housing Element
The Consultant will update the 2019-2023 Housing Element goals, policies, programs, and quantified objectives based on the evaluation of the 2019-2023 Housing Element, the housing needs and constraints identified in the Background Report, recent changes to State Housing Element law, public input from the community meetings, and feedback from City staff. Housing policies and programs will build upon the most successful policies and programs in the 2019- 2023 Housing Element.
Task 3.5 Hosing Technical Advisory Committee Meeting #3 The Consultant will assist City staff with facilitating a HTAC meeting to review the Administrative Review Draft Housing Element. This will be a virtual meeting via Zoom or other on-line technology. Based on Committee comments and direction, we will prepare a second Administrative Draft Housing Element for staff review.
Phase 3 Deliverables
• Administrative Review Draft Housing Element (digital: Word, pdf) • Revised Administrative Review Draft Housing Element (digital: Word, pdf) Phase 4 Public Review Draft Housing Element
Task 4.1 Public Review Draft Housing Element
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The Consultant will prepare a Public Review Draft Housing Element based on comments received from City staff on the Administrative Review Draft Housing Element. The Consultant will provide City staff with a digital copy of the Public Review Draft Housing Element to post on the City’s website, and we will email the Draft Housing Element to the Technical Advisory committee, stakeholders, and community members on the contact list. Recent changes in State law now require the City to circulate the Public Review Draft Housing Element for a minimum 30-day public comments period. At the end of the comment period, the City must allow for a minimum 10 days to respond to public comments prior to the Planning Commission reviewing the Housing Element.
Task 4.2 Newsletter #2: Public Review Draft Housing Element The Consultant will prepare a newsletter that provides a summary of the key take-aways in the Public Review Draft Housing Element, particularly key changes to policies and programs, any proposed changes to land use designations (locations or density ranges), and what these changes mean for their community. The newsletter will provide an update on the Housing Element process and information on how to provide input on the draft Housing Element.
Task 4.3 Planning Commission Study Session
The Consultant will attend a study session with the Planning Commission to solicit input on the Public Review Draft Housing Element and formulate a recommendation for the City Council to authorize City staff to submit the Housing Element to HCD for the mandated 90-day review period. The Consultant will describe all input received from the community meetings and any revisions to the Public Review Draft Housing Element proposed in response to this input. The Consultant will prepare and present a PowerPoint presentation.
Task 4.4 City Council Study Session
The Consultant will attend a study session with the City Council to solicit input on the Public Review Draft Housing Element and request authorization to submit the Housing Element to HCD for the mandated 90-day review period. The Consultant will describe all input received from the stakeholder interviews, community meetings, and the Planning Commission study session, and any revisions to the Public Review Draft Housing Element proposed in response to this input. The Consultant will prepare and present a PowerPoint presentation.
Phase 4 Deliverables:
• Newsletter #2 (digital; InDesign, pdf)
• Study Session Materials (digital; PowerPoint)
• Public Review Draft Housing Element (digital; Word, pdf) 241
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Phase 5 HCD Review
Task 5.1 HCD Review Draft Housing Element, HCD Checklists, and Transmittal to HCD The Consultant will revise the Public Review Draft Housing Element based on direction from the Planning Commission and City Council and prepare the draft to be delivered to HCD. The Consultant will provide a digital copy of the HCD Review Draft Housing Element for posting on the City website and will send out an email to stakeholders and community meeting attendees.
The Consultant will also prepare a cover memorandum to accompany submission of the Draft Housing Element to HCD. The Consultant will hand-deliver the Draft Housing Element to HCD.
Under State law, HCD has up to 90 days to review the Draft Housing Element. During the HCD review process, we will maintain close contact with the designated HCD reviewer to respond to any questions he/she may have during the process.
Task 5.2 Meeting with HCD
Following submission of the HCD Review Draft Housing Element and prior to the end of the 90- day review period, the Consultant and City staff will meet with HCD staff or conduct a phone call meeting to discuss the Draft Housing Element and preliminary HCD comments. If necessary, we will have additional meetings with HCD after submitting the response to comments to facilitate the review process.
Task 5.3 Response to HCD Comments
Following the City’s receipt of HCD comments on the HCD Review Draft Housing Element, the Consultant will prepare a preliminary response to HCD comments and provide this to City staff for their review. Based on comments received from City staff, we will then prepare a formal written response to HCD comments and submit them to HCD. The Consultant will work closely with HCD to seek a timely conditional approval letter prior to Planning Commission and City Council hearings.
Phase 5 Deliverables:
• HCD Review Draft Housing Element (digital, pdf)
• Completeness Checklist (digital; Word, pdf)
• Response to HCD Comments (digital; Word, pdf)
Phase 6 Safety Element Update
Task 6.1 Vulnerability Assessment
To kick off the Safety Element update, the Consultant will identify and map critical assets (emergency services, transportation, public health) that could be exposed to climate hazards and conduct a spatial and qualitative analysis of the sensitivity and adaptive capacity of each. A 242
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key component of the vulnerability assessment will be an evaluation of the potential for climate change to disproportionally impact vulnerable population groups (e.g., seniors, children, low- income communities, outdoor workers).
The vulnerability assessment is intended to be a qualitative and planning-level document and will not include any modeling or quantitative asset analysis. The Consultant will rely on readily available tools (e.g., CalEnviroScreen, Healthy Places Index, U.S. Census, Cal-Adapt), the County Local Hazard Mitigation Plan (LHMP), and information on vulnerable populations and adaptive capacity generated through the engagement process.
Task 6.2 AB 747 Analysis
The Consultant will coordinate with City staff, and other emergency management personnel to select up to three emergency scenarios and assess the capacity of the City’s evacuation route options under selected conditions, including those most likely to be influenced by climate change. The analysis will be informed by existing evacuation plans and analyses to develop a model that provides evacuation route vulnerability scores for residential parcels (and commercial properties if the City desires).
Through this analysis, the Consultant will develop “vulnerability scores.” The vulnerability score will be assigned to each parcel based on modeled time estimated to evacuate outside City boundaries. This model will not include dynamic traffic modeling. The analysis will be used to determine if the City should consider putting additional or alternate evacuation contingency plans in place and what additional measures or contingency plans and options it should consider implementing. The Consultant will include key findings and policy recommendations for inclusion in the Safety Element and develop a brief technical memorandum describing the methodology of the results and high-level recommendations. As part of this task, the Consultant will conduct a virtual meeting with City staff to showcase the results and gather one round of consolidated comments to address.
Task 6.3 SB 99 Analysis
The Consultant will identify residential developments in any hazard area identified in the Safety Element that do not have at least two emergency evacuation routes. The Consultant will coordinate with City staff to develop a Citywide map using ESRI that identifies communities with less than two ingress/egress and provide a narrative description of the implications for evacuation planning. The Consultant will use the analysis to determine if the City should consider specific plans or policies to address any identified access limitations or constraints.
Task 6.4 Safety Element Policy Memorandum
The Consultant will review the current version of the City’s Safety Element and identify necessary updates to bring it into compliance with government code 65302 section 1 and maintain consistency with the Office of Planning and Research (OPR) General Plan Guidelines 243
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for Required Elements (Chapter 4).
The Consultant will provide a memorandum summarizing the most recent applicable legislation requirements, recommendations on how the City can comply with these requirements, and critical updates that will be needed for the existing Safety Element. This memorandum is intended to be used early in the project process as a foundation to facilitate City staff and decision-maker buy-in throughout the development of the Safety Element.
Task 6.5 Administrative Draft Safety Element
The Consultant will update background information, associated maps, and regulatory context for the following topics currently included in the Safety Element: soils, seismic, and other geologic hazards; flood hazards; fire hazards; hazardous materials and waste; aircraft hazards; and emergency response. The Safety Element will also be updated to include a discussion of how it aligns with other General Plan elements. The Consultant will provide an Administrative Draft Safety Element, envisioned as an internal document that the City and applicable stakeholders would review.
Task 6.6 Safety Technical Advisory Committee Meeting
The Consultant will assist City staff with facilitating a Safety Technical Advisory Committee (STAC) meeting to discuss the Administrative Draft Safety Element. The make-up of this STAC may be different from the Housing TAC given the different focus of the Element. This STAC should include staff from police, fire, emergency services, and perhaps County and State public safety agencies. We can discuss the STAC membership further at the kick-off meeting. This will be a virtual meeting via Zoom or other on-line technology.
Task 6.7 Public Review Draft Safety Element
The Consultant will revise the Administrative Draft Safety Element in response to a single set of consolidated comments from the City and TAC. Comments shall be made in Microsoft Word’s “tracked changes” feature. The Consultant will provide a single “clean” version of the Public Review Draft Environmental Justice Element.
Task 6.8 Community Workshop: Safety Element
The Consultant and City staff will facilitate one community workshop on the Safety Element.
The Consultant will present the element and discuss the key changes. The Consultant will then facilitate a question-and-answer session and interactive small Committee sessions. The Consultant will summarize the results of the input received. This meeting will be virtual via Zoom or other technology.
Task 6.9 Planning Commission and City Council Joint Study Session The Consultant will assist City staff with facilitating a joint study session with the Planning 244
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Commission and City Council to present the Draft Safety Element and discuss the results of the community workshop and STAC meeting (this study session will also include a discussion of the environmental Justice Element, as described in Task 7.4). The Consultant will solicit input and direction from the Commission and Council. The Consultant will revise the Safety Element as necessary following the study session.
Task 6.10 Adoption Hearings
The Consultant will attend Planning Commission and City Council adoption hearings for the Safety Element as a part of the Housing Element Adoption Hearings (Task 9.2).
Phase 6 Deliverables:
• Draft Vulnerability Assessment (digital; Word, pdf)
• Final Vulnerability Assessment (digital; Word, pdf)
• Evacuation Analysis – Technical Memorandum (digital; Word, pdf) • Draft Evacuation Map (digital; GIS, pdf)
• Final Evacuation Map (digital; GIS, pdf)
• Draft Safety Element Policy Memorandum (digital; Word, pdf) • Final Safety Element Policy Memorandum (digital; Word, pdf) • Administrative Draft Safety Element Update (digital; Word, pdf) • Public Review Draft Safety Element Update (digital; Word, pdf) • Community Workshop Materials (digital; PowerPoint; hard copy display boards and handouts)
Phase 7 Environmental Justice Element
Task 7.1 Administrative Draft Environmental Justice Element The Consultant will prepare an Administrative Draft Environmental Justice Element that aligns with the Governor’s Office of Planning and Research Guidelines. The Consultant will use CalEnviroscreen 4.0 to determine areas of concern regarding environmental justice issues that is consistent with SB 535 (Disadvantaged Communities). The updated Environmental Justice Element at a minimum will address goals, policies, and programs pertaining to educational attainment, pollution burden of disadvantaged communities, and identification of burdensome quality of life metrics including poverty, unemployment, linguistic isolation, and health.
The Element will include an introduction describing racial, social, and environmental injustices in historical planning practices and how the General Plan includes planning practices that promote healthy, diverse, and equitable communities. The Consultant will focus goals, policies, and implementation programs for the environmental Justice Element in the following areas:
• Racial and Social Justice
• Environmental Justice
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• Civic Engagement in the Public Decision-Making Process
Task 7.2 Public Review Draft Environmental Justice Element The Consultant will revise the Administrative Draft Environmental Justice Element in response to a single set of consolidated comments from the City. Comments shall be made in Microsoft Word’s “tracked changes” feature. The Consultant will provide a single “clean” version of the Public Review Draft Environmental Justice Element.
Task 7.3 Community Workshops: Environmental Justice Element The Consultant will work with City staff and local community organizations to facilitate up to three community workshops on the Environmental Justice Element. The workshops will be open house style with informational display boards in both English and Spanish. The consultants and organization representatives will make a presentation on the Environmental Justice Element and facilitate an interactive discussion. All discission will include simultaneous verbal translation. The Consultant will summarize the results of the input received.
Task 7.4 Planning Commission and City Council Joint Study Session The Consultant will assist City staff with facilitating a joint study session with the Planning Commission and City Council to present the Draft Environmental Justice Element and discuss the results of the community workshops. The Consultant will solicit input and direction from the Commission and Council. The Consultant will revise the Environmental Justice Element as necessary following the study session. (Note: This task will be combined with Task 6.9) Task 7.5 Adoption Hearings
The Consultant will attend Planning Commission and City Council adoption hearings for the Environmental Justice Element as a part of the Housing Element adoption hearings (Task 9.2).
Phase 7 Deliverables:
• Administrative Draft Environmental Justice Element (digital; Word, pdf) • Public Review Draft Environmental Justice Element (digital; Word, pdf) • Community workshop materials (digital; PowerPoint; hard copy display boards and handouts)
• Final Environmental Justice Element (digital; Word, pdf) Phase 8 CEQA Compliance
The Consultant understands City staff will be responsible for CEQA compliance. The Consultant have allocated budget to assist City staff with CEQA compliance if needed.
Phase 9 Review and Adoption
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The Consultant will work with City staff to respond to HCD staff comments, incorporate those responses into a Public Hearing Draft Housing Element. The Consultants will also prepare Public Hearing Draft Safety and Environmental Justice Elements, and facilitate adoption of the Final Housing, Safety, and Environmental Justice Elements.
Task 9.1 Public Hearing Draft Housing Element
The Consultant will prepare a Public Hearing Draft Housing, Safety, and Environmental Justice Elements. Consultant will provide a digital copy of the Public Hearing Draft Housing, Safety, and Environmental Justice Elements, to post on the Project website and will send out an email to stakeholders and the community.
Task 9.2 Public Hearings and Adoption
The Consultant will attend two public hearings–one with the Planning Commission and one with the City Council–to present the Public Hearing Draft Housing, Safety, and Environmental Justice Elements, respond to questions, and record the recommendations of the Planning Commission and the action of the City Council.
Task 9.3 Final Housing, Safety, and Environmental Justice Elements and Transmittal to HCD The Consultant will prepare the Final Housing Safety, and Environmental Justice Elements that incorporate any changes made by the Planning Commission and City Council in adopting the Housing Element. The Consultant will print hard copies and provide a digital copy of the Final Housing Safety, and Environmental Justice Elements. The Consultant will also prepare a cover memorandum to accompany submission of the Final Housing Element to HCD for the final 60- day certification period.
Phase 9 Deliverables:
• Planning Commission and City Council public hearing materials (digital; PowerPoint; pdf) • Final Housing Element transmittal memorandum to HCD (digital; Word, pdf) • Final Housing, Safety, and Environmental Justice Elements (1 bound hard copy of each; digital; Word, pdf)
Project Management and Ongoing Communication and Coordination The Consultant will regularly communicate with City staff on a weekly or bi-weekly basis, or as necessary to resolve issues. The Consultant will prepare monthly status reports documenting the progress made each month on completing the project, and review and update the schedule, as necessary.
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📆 Schedule
Phase 1
Project Initiation
Phase 2
Housing Policy Analysis
and Alternatives
Phase 3
Administrative Draft
Housing Element
Phase 4
Public Review Draft
Housing Element
Phase 5
HCD Review
Phase 6
CEQA Compliance
Phase 7
Review and Adoption
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
2022 2023 248
Cost Estimate
Mintier Harnish
Phases,
Tasks Description
HARNISH
Project Director
B. GIBBONS
Project Manager
R. LESTER Assistant
Project Manager
M. GIBBONS
Associate
M. JUMAMOY
Planner
Administrative
Support
Subtotal Hours
Subtotal Costs
WEATHERBY
Director
R. SHAKRA
N. BELLUCI
A. JOURNEY
J. MONTAGUE
L. COLLAR
E. GASTON
CAD SPECIALIST
ADMINISTRATION
Subtotal Hours
Subtotal Costs
TOTAL
COSTS
Phase 1 Project Initiation
Task 1.1 Project Kick-off Meeting 12 12 12 12 48 $9,960 12 12 24 $6,516 $16,476 Task 1.2 Community Engagement Strategy 4 4 8 12 28 $4,820 0 $0 $4,820 Task 1.3 Project Branding and Logo 2 20 22 $2,860 0 $0 $2,860 Task 1.4 Website and Online Engagement 12 40 52 $7,160 0 $0 $7,160 Task 1.5 Newsletter #1: Housing, Safety, and Environmental Justice Element Update Overview 2 4 8 14 $2,140 0 $0 $2,140 Task 1.6 Housing Technical Advisory Committee Meeting #1 4 4 4 12 $2,060 4 4 8 $2,036 $4,096 Task 1.7 Planning Commission and City Council Joint Study Session 12 12 24 $4,680 0 $0 $4,680 Subtotal 16 34 54 12 84 0 200 $33,680 16 12 4 0 0 0 0 32 $8,552 $42,232 Phase 2 Housing Policy Analysis and Alternatives
Task 2.1 Community Workshop #1: Housing Concerns and Needs 4 4 6 14 $2,310 4 4 $896 $3,206 Task 2.2 Stakeholder Interviews 12 8 20 $3,160 12 12 $2,688 $5,848 Task 2.3 Review and Evaluate Current Housing Element 4 8 12 $1,720 0 $0 $1,720 Task 2.4 Sites Inventory 8 8 $1,440 12 20 120 50 202 $44,660 $46,100 Task 2.5 Housing Technical Advisory Committee Meeting #2 4 4 8 $1,560 4 4 8 $2,036 $3,596 Task 2.6 Community Workshop #2: Vacant and Underutilized Site Assessment 4 6 10 $1,470 4 6 10 $2,000 $3,470 Task 2.7 Planning Commission and City Council Joint Study Session 12 12 24 $4,680 12 12 $2,688 $7,368 Subtotal 0 20 48 0 28 0 96 $16,340 16 20 156 56 0 0 0 248 $54,968 $71,308 Phase 3 Administrative Draft Housing Element
Task 3.1 Existing Housing Needs Analysis 8 8 $1,440 10 30 80 10 130 $30,350 $31,790 Task 3.2 Housing Resources and Opportunities 2 4 8 32 46 $6,800 8 8 $1,792 $8,592 Task 3.3 Housing Constraints 2 4 8 32 46 $6,800 8 8 $1,792 $8,592 Task 3.4 Administrative Review Draft Housing Element 2 4 40 40 86 $13,560 16 16 $3,584 $17,144 Task 3.5 Housing Technical Advisory Committee Meeting #3 4 4 8 $1,560 4 4 8 $2,036 $3,596 Subtotal 6 16 68 0 104 0 194 $30,160 14 30 116 10 0 0 0 170 $39,554 $69,714 Phase 4 Public Review Draft Housing Element
Task 4.1 Public Review Draft Housing Element 2 4 12 24 42 $6,520 2 4 16 22 $5,186 $11,706 Task 4.2 Newsletter #2: Public Review Draft Housing Element 2 2 8 12 $1,780 0 $0 $1,780 Task 4.3 Planning Commission Study Session 12 12 4 28 $5,180 0 $0 $5,180 Task 4.4 City Council Study Session 12 12 4 28 $5,180 0 $0 $5,180 Subtotal 2 30 38 0 40 0 110 $18,660 2 4 16 0 0 0 0 22 $5,186 $23,846 Phase 5 HCD Review Draft Housing Element, HCD Checklists, and Transmittal to HCD Task 5.1 HCD Review Draft Housing Element, HCD Checklists, and Transmittal to HCD 2 8 8 18 $2,860 0 $0 $2,860 Task 5.2 Meeting With HCD 2 4 4 10 $1,740 0 $0 $1,740
Task 5.3 Response to HCD Comments 2 12 16 30 $4,680 2 4 4 10 $2,202 $6,882 Subtotal 4 2 24 0 28 0 58 $9,280 2 0 4 4 0 0 0 10 $2,202 $11,482 Phase 6 Safety Element Update
Task 6.1 Vulnerability Assessment 2 2 $520 4 6 26 38 8 82 $14,728 $15,248 Task 6.2 AB 747 Analysis 2 2 $520 2 4 24 16 60 106 $17,014 $17,534 Task 6.3 SB 99 Analysis 2 2 $520 1 1 1 14 17 $2,601 $3,121 Task 6.4 Safety Element Policy Memorandum 2 2 $520 1 1 4 14 20 $3,343 $3,863 Task 6.5 Administrative Draft Safety Element 2 2 $520 4 8 22 68 16 118 $19,476 $19,996 Task 6.6 Safety Technical Advisory Committee Meeting 0 $0 4 4 8 $1,440 $1,440 Task 6.7 Public Review Draft Safety Element 2 2 $520 1 2 4 8 15 $2,785 $3,305 Task 6.8 Community Workshop: Safety Element 4 4 $840 4 4 8 16 $3,016 $3,856 Task 6.9 Planning Commission and City Council Study Session 12 12 $3,120 8 8 16 $3,856 $6,976 Task 6.10 Adoption Hearings (hours included in Task 7.2 ) 0 $0 0 $0 $0 Subtotal 24 4 0 0 0 0 28 $7,080 13 34 97 0 156 98 0 398 $68,259 $75,339 Phase 7 Environmental Justice Element
Task 7.1 Administrative Draft Environmental Justice Element 2 4 8 40 54 $7,800 0 $0 $7,800 Task 7.2 Public Review Draft Environmental Justice Element 2 2 4 12 20 $3,160 0 $0 $3,160 Task 7.3 Community Workshops: Environmental Justice Elements 4 12 24 24 64 $10,880 0 $0 $10,880 Task 7.4 Planning Commission and City Council Study Session 12 12 8 32 $5,680 0 $0 $5,680 Task 7.5 Adoption Hearings (hours included in Task 7.2 ) 0 $0 0 $0 $0 Subtotal 8 30 0 48 84 0 170 $27,520 0 0 0 0 0 0 0 0 $0 $27,520 Phase 6 CEQA Compliance
General CEQA assistance 0 $0 16 16 $4,128 $4,128
Subtotal 0 0 0 0 0 0 0 $0 0 16 0 0 0 0 0 16 $4,128 $4,128 Phase 7 Review and Adoption
Task 7.1 Public Hearing Draft Housing Element 2 4 12 16 34 $5,520 0 $0 $5,520 Task 7.2 Public Hearings and Adoption (2) 24 24 48 $9,360 24 24 $6,192 $15,552 Task 7.3 Final Housing Element and Transmittal to HCD 2 2 2 6 $1,030 0 $0 $1,030 Subtotal 2 30 38 0 18 0 88 $15,910 0 24 0 0 0 0 0 24 $6,192 $22,102 PM Project Management
Subtotal 8 20 40 12 40 120 $20,640 12 24 24 60 $11,436 $32,076 TOTAL
Total Hours 70 186 310 72 386 40 1,064 - 75 140 417 70 156 98 24 980 - - 2022 Billing Rates $260 $210 $180 $180 $125 $125 - - $285 $258 $224 $184 $136 $131 $110 - - - Labor Subtotals $18,200 $39,060 $55,800 $12,960 $48,250 $5,000 - $179,270 $21,375 $36,120 $93,408 $12,880 $21,216 $12,838 $2,640 - $200,477 $379,747 Direct Expenses (e.g., printing, travel, translation services) $10,000 $5,000 $15,000 TOTAL COST $189,270 $205,477 $394,747
1) This represents a total not to exceed cost based on the provided scope of work. 2) The distribution of hours between firms, staff categories, and tasks are an estimate.
While the total costs will not change, the distribution of hours/costs may vary depending on actual execution. 3) Labor rates are subject to change every January 1st, although this change will not change the total budget.
MINTIER HARNISH RINCON CONSULTANTS, INC.
249
Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 22-0282 Agenda Date: 7/18/2022 Agenda #: 12.
Agenda Item Wording:
Authorize the City Manager to enter into a purchase agreement with Dell, to purchase video conferencing capable computer monitors and standard monitors piggybacking on the National Association of State Procurement Officials (NASPO) ValuePoint competitively bid agreement, for an amount not to exceed $400,000.
Deadline for Action: 7/18/2022
Submitting Department: Finance and Technology Services
Contact Name and Phone Number:
Jaime Salazar, IS Supervisor 559-713-4121 [email protected] John Howson, IS Manager, 559-713-4122 [email protected] Renee Nagel, Finance & Technology Director, 559-713-4375 [email protected] Department Recommendation:
It is recommended that the Visalia City Council authorize the City Manager to enter into an agreement with Dell to purchase computers monitors, piggybacking the National Association of State Procurement Officials (NASPO) ValuePoint competitively bid agreement, for an amount not to exceed $400,000.
Background Discussion:
In response to the COVID-19 pandemic outbreak many standard practices, such as in person meetings and travel changed considerably, moving to online meetings via Zoom or Teams. During the initial stages of the pandemic Information Services staff were able to procure a small number of video/web cameras and monitors from a variety of sources. While this provided conferencing capabilities for some staff, not all staff were able to be outfitted with such technology. Supply chains are starting to catch up with the demand and staff are now able to procure equipment to allow all employees the ability to host and join meetings remotely.
Providing conferencing capable computer monitors will reduce the need for congregate settings, allow for less travel, and allow staff to watch training material from their individual workspaces. The new computer monitors will be equipped with video conferencing capabilities, web camera, microphone, and speakers. Staff that have a second monitor will be provided a similarly sized second monitor that does not have conferencing features. The initial order will consist of 512 conference capable monitors and 293 secondary monitors. It is anticipated that a few monitors will be identified during the deployment that were missed that will have to be ordered after the fact, the requested amount includes a small buffer to accommodate these additional purchases.
The city-wide implementation of video conferencing monitors will allow all staff to participate in necessary meetings and training, and standardization of this equipment will allow for easier and Visalia City Council Printed on 7/15/2022Page 1 of 2
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File #: 22-0282 Agenda Date: 7/18/2022 Agenda #: 12.
faster support by the Information Services department.
Any surplus equipment that results from these replacements will be sold as per purchasing policy.
Fiscal Impact:
Funds for this project were appropriated by Council on December 20, 2021 (6420-72000/EQ0198).
This project has a current budget of $450,000 in the American Rescue Plan Act (ARPA) fund.
Prior Council Action: On December 20, 2021, staff presented to Council the proposed ARPA funded projects, this included new monitors to allow staff to host and attend meetings remotely, reducing face to face interactions and travel.
Other: N/A
Alternatives: Council can choose to deny the recommendation and reconsider the project as a general fund capital improvement project (CIP) or direct staff to evaluate options to continue to support the current devices.
Recommended Motion (and Alternative Motions if expected):
I move to authorize the City Manager to enter into an agreement with Dell to purchase computers monitors piggybacking the State of California National Association of State Procurement Officials (NASPO) ValuePoint contract MNWNC-108 addendum 15-70-34-003 for an amount not to exceed $400,000
Attachments: Monitor Quote.pdf, California-participating-addendum.pdf Visalia City Council Printed on 7/15/2022Page 2 of 2
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A quote for your consideration
Based on your business needs, we put the following quote together to help with your purchase decision. Below is a detailed summary of the quote we’ve created to help you with your purchase decision.
To proceed with this quote, you may respond to this email, order online through your Premier page
, or, if you do not have Premier, use this
Quote to Order
.
Quote No.
3000125758856.1
Total
$382,293.08
Customer #
1210641
Quoted On
Jul. 05, 2022
Expires by
Jul. 31, 2022
Contract Name
Dell NASPO Computer
Equipment PA - California
Contract Code
C000000181156
Customer Agreement #
MNWNC-108/7157034003
Deal ID
24064291
Sales Rep
VALERIE ALLEN
Phone
(800) 456-3355, 18009993355
Email
[email protected]
Billing To
ACCOUNTS PAYABLE
CITY OF VISALIA
PO BOX 5078
VISALIA,
CA
93278-5078
Message from your Sales Rep
Please contact your Dell sales representative if you have any questions or when you're ready to place an order. Thank you for shopping with Dell!
Regards,
VALERIE ALLEN
Shipping Group
Shipping To
JOSH DENNEWITZ
CITY OF VISALIA
315 EAST ACEQUIA AVE
VISALIA, CALIFORNIA
VISALIA,
CA
93291
(559) 713-4125
Shipping Method
Standard Delivery Free Cost
Product
Unit Price
Quantity
Subtotal
Dell 27 Monitor - P2723D, 68.6cm (27")
$355.84
275
$97,856.00
Dell UltraSharp 49 Curved Monitor – U4919DW
$1,233.03
18 $22,194.54
Dell 27 Video Conferencing Monitor - C2722DE, 68.47cm
(27.0")
$446.42
512
$228,567.04
Dell Marketing LP. U.S. only. Dell Marketing LP. is located at One Dell Way, Mail Stop 8129, Round Rock, TX 78682
252
Subtotal:
Shipping:
Environmental Fee:
Non-Taxable Amount:
Taxable Amount:
Estimated Tax:
Total:
$348,617.58
$0.00
$4,043.00
$4,043.00
$348,617.58
$29,632.50
$382,293.08
Special pricing may be available for qualified customers. Please contact your DFS Sales Representative for details.
Dell Marketing LP. U.S. only. Dell Marketing LP. is located at One Dell Way, Mail Stop 8129, Round Rock, TX 78682
253
Shipping Group Details
Shipping To
JOSH DENNEWITZ
CITY OF VISALIA
315 EAST ACEQUIA AVE
VISALIA, CALIFORNIA
VISALIA,
CA
93291
(559) 713-4125
Shipping Method
Standard Delivery Free Cost
Quantity
Subtotal
Dell 27 Monitor - P2723D, 68.6cm (27")
Estimated delivery if purchased today:
Jul. 14, 2022
Contract # C000000181156
Customer Agreement #
MNWNC-108/7157034003
$355.84
275
$97,856.00
Description
SKU
Unit Price
Quantity
Subtotal
Dell 27 Monitor - P2723D, 68.6cm (27")
210-BDKG
-
275
-
Dell Limited Hardware Warranty
814-5380
-
275
-
Advanced Exchange Service, 3 Years
814-5381
-
275
-
Quantity
Subtotal
Dell UltraSharp 49 Curved Monitor – U4919DW
Estimated delivery if purchased today:
Aug. 10, 2022
Contract # C000000181156
Customer Agreement #
MNWNC-108/7157034003
$1,233.03
18 $22,194.54
Description
SKU
Unit Price
Quantity
Subtotal
Dell UltraSharp 49 Curved Monitor-U4919DW
210-ARNW
-
18 -
Dell Limited Hardware Warranty
815-2573
-
18 -
Advanced Exchange Service, 3 Years
815-2574
-
18 -
Quantity
Subtotal
Dell 27 Video Conferencing Monitor - C2722DE, 68.47cm (27.0") Estimated delivery if purchased today:
Jul. 14, 2022
Contract # C000000181156
Customer Agreement #
MNWNC-108/7157034003
$446.42
512
$228,567.04
Description
SKU
Unit Price
Quantity
Subtotal
Dell 27 Video Conferencing Monitor - C2722DE, 68.47cm (27.0") 210-AYQG
-
512
-
Dell Limited Hardware Warranty
814-9422
-
512
-
Advanced Exchange Service, 3 Years
814-9423
-
512
-
Subtotal:
Shipping:
Environmental Fee:
Estimated Tax:
Total:
$348,617.58
$0.00
$4,043.00
$29,632.50
$382,293.08
Dell Marketing LP. U.S. only. Dell Marketing LP. is located at One Dell Way, Mail Stop 8129, Round Rock, TX 78682
254
Important Notes
Terms of Sale
This Quote will, if Customer issues a purchase order for the quoted items that is accepted by Supplier, constitute a contract between the entity issuing this Quote (“Supplier”) and the entity to whom this Quote was issued (“Customer”). Unless otherwise stated herein, pricing is valid for thirty days from the date of this Quote. All product, pricing and other information is based on the latest information available and is subject to change. Supplier reserves the right to cancel this Quote and Customer purchase orders arising from pricing errors. Taxes and/or freight charges listed on this Quote are only estimates. The final amounts shall be stated on the relevant invoice. Additional freight charges will be applied if Customer requests expedited shipping. Please indicate any tax exemption status on your purchase order and send your tax exemption certificate to
[email protected]
or
[email protected]
, as applicable.
Governing Terms
: This Quote is subject to: (a) a separate written agreement between Customer or Customer’s affiliate and Supplier or a Supplier´s affiliate to the extent that it expressly applies to the products and/or services in this Quote or, to the extent there is no such agreement, to the applicable set of Dell’s Terms of Sale (available at www.dell.com/terms
or
www.dell.com/oemterms
), or for cloud/as-a-
Service offerings, the applicable cloud terms of service (identified on the Offer Specific Terms referenced below); and (b) the terms referenced herein (collectively, the “Governing Terms”). Different Governing Terms may apply to different products and services on this Quote. The Governing Terms apply to the exclusion of all terms and conditions incorporated in or referred to in any documentation submitted by Customer to Supplier.
Supplier Software Licenses and Services Descriptions
: Customer’s use of any Supplier software is subject to the license terms accompanying the software, or in the absence of accompanying terms, the applicable terms posted on www.Dell.com/eula
. Descriptions and
terms for Supplier-branded standard services are stated at www.dell.com/servicecontracts/global
or for certain infrastructure products at
www.dellemc.com/en-us/customer-services/product-warranty-and-service-descriptions.htm .
Offer-Specific, Third Party and Program Specific Terms
: Customer’s use of third-party software is subject to the license terms that accompany the software. Certain Supplier-branded and third-party products and services listed on this Quote are subject to additional, specific terms stated on
www.dell.com/offeringspecificterms
(“Offer Specific Terms”).
In case of Resale only
: Should Customer procure any products or services for resale, whether on standalone basis or as part of a solution, Customer shall include the applicable software license terms, services terms, and/or offer-specific terms in a written agreement with the end- user and provide written evidence of doing so upon receipt of request from Supplier.
In case of Financing only
: If Customer intends to enter into a financing arrangement (“Financing Agreement”) for the products and/or services on this Quote with Dell Financial Services LLC or other funding source pre-approved by Supplier (“FS”), Customer may issue its purchase order to Supplier or to FS. If issued to FS, Supplier will fulfill and invoice FS upon confirmation that: (a) FS intends to enter into a Financing Agreement with Customer for this order; and (b) FS agrees to procure these items from Supplier. Notwithstanding the Financing Agreement, Customer’s use (and Customer’s resale of and the end-user’s use) of these items in the order is subject to the applicable governing agreement between Customer and Supplier, except that title shall transfer from Supplier to FS instead of to Customer. If FS notifies Supplier after shipment that Customer is no longer pursuing a Financing Agreement for these items, or if Customer fails to enter into such Financing Agreement within 120 days after shipment by Supplier, Customer shall promptly pay the Supplier invoice amounts directly to Supplier.
Customer represents that this transaction does not involve: (a) use of U.S. Government funds; (b) use by or resale to the U.S. Government; or (c) maintenance and support of the product(s) listed in this document within classified spaces. Customer further represents that this transaction does not require Supplier’s compliance with any statute, regulation or information technology standard applicable to a U.S.
Government procurement.
For certain products shipped to end users in California, a State Environmental Fee will be applied to Customer’s invoice. Supplier encourages customers to dispose of electronic equipment properly.
Electronically linked terms and descriptions are available in hard copy upon request.
Dell Marketing LP. U.S. only. Dell Marketing LP. is located at One Dell Way, Mail Stop 8129, Round Rock, TX 78682
255
256
257
258
259
260
261
262
Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 22-0287 Agenda Date: 7/18/2022 Agenda #: 13.
Agenda Item Wording:
Authorize the Mayor to send cosponsor request letter to appropriate federal representatives for the HELPER Act of 2021 (S. 2981/H.R. 3172).
Deadline for Action: 7/18/2022
Submitting Department: Community Development
Contact Name and Phone Number: Devon Jones, 4190
Department Recommendation:
Authorize the Mayor to submit cosponsor request letter to appropriate federal representatives for the HELPER Act of 2021 (S. 2981/H.R. 3172).
Background Discussion:
The HELPER Act of 2021 (Senate bill 2981 and House of Representatives bill 3172), is a bipartisan bill that would amend the National Housing Act to establish a mortgage insurance program for first responders and teachers in the model of the VA Home Loan Program. Specifically, the HELPER Act would:
- Create a one-time use home loan program under the FHA for law enforcement officers, firefighters, Emergency Medical Technicians (EMT), paramedics, and pre-K-12 teachers; - Eliminate a down payment requirement;
- Eliminate a monthly mortgage insurance premium (MIP) requirement; - Require a 3.6 percent upfront mortgage insurance (UFMI) premium to ensure the solvency of the program; and
- Require the program to be reauthorized after five years.
This legislation currently has 72 House cosponsors and 11 Senate cosponsors. This cosponsor request letter will be sent to the City’s representatives to add them to the cosponsor list. Staff needs Council’s approval of this action as it does not align specifically with the Council’s approved federal agenda (attached). Conceptually, staff believes this action aligns with Council’s other federal and state priorities and is seeking formal approval to submit at this time.
Fiscal Impact: N/A
Prior Council Action: N/A
Other: N/A
Alternatives: Per Council direction
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File #: 22-0287 Agenda Date: 7/18/2022 Agenda #: 13.
Recommended Motion (and Alternative Motions if expected):
I move to authorize the Mayor to submit a cosponsor request letter to appropriate federal representatives for the HELPER Act of 2021 (S. 2981/H.R. 3172).
Environmental Assessment Status: N/A
CEQA Review: N/A
Attachments: Draft cosponsor request letter, approved 2022 federal agenda Visalia City Council Printed on 7/14/2022Page 2 of 2
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Steven A. Nelsen
Mayor
Brian Poochigian
Vice Mayor
Gregory F. Collins
Councilmember
Brett Taylor
Councilmember
Liz Wynn
Councilmember
July 19, 2022
The Honorable Dianne Feinstein
331 Hart Senate Office Building
Washington, D.C. 20510
The Honorable Alex Padilla
112 Hart Senate Office Building
Washington, DC 20510
The Honorable Connie Conway
1013 Longworth House Office Building
Washington, DC 20515
Dear Senator Feinstein, Senator Padilla, and Representative Conway,
As you may know, the HELPER Act of 2021 (S. 2981/H.R. 3172) is bipartisan, bicameral legislation that would amend the National Housing Act to establish a mortgage insurance program for first responders and teachers in the model of the VA Home Loan Program. The City of Visalia would benefit greatly from this reform as it would make housing more affordable for these public servants and help the City recruit and retain these critical workers. With that in mind, we ask that you cosponsor this legislation.
Throughout the COVID-19 pandemic, first responders and educators have continued to answer the call to serve our community, however, some of them face financial obstacles when buying a home in today’s competitive housing market, and as a result are often unable to achieve homeownership in the City.
The HELPER Act addresses this by establishing a new home loan program, administered under the Federal Housing Administration (FHA), that creates a process for first responders and educators to affordably purchase a home. Specifically, the HELPER Act:
- Creates a one-time use home loan program under the FHA for law enforcement officers, firefighters, Emergency Medical Technicians (EMT), paramedics, and pre-K-12 teachers;
- Eliminates a down payment requirement;
- Eliminates a monthly mortgage insurance premium (MIP) requirement; - Requires a 3.6 percent upfront mortgage insurance (UFMI) premium to ensure the solvency of the program; and
- Requires the program to be reauthorized after five years.
The HELPER Act currently has 11 cosponsors in the Senate, while the House companion bill has 74 cosponsors. The House legislation is cosponsored by six members of the California delegation: Reps. Josh Harder, Jimmy Panetta, David Valadao, Lou Correa, Salud Carbajal, and Mike Levin.
220 N. Santa Fe St., Visalia, CA 93292 Tel: (559) 713-4512 Fax: (559) 713-4800 City of Visalia Office of the Mayor
265
A home loan program that provides access to affordable homeownership is a much- needed benefit for our first responders and teachers. Thank you for your consideration of this request and please let us know if you have any questions.
Sincerely,
Steve Nelsen, Mayor
City of Visalia
266
City of Visalia, California
2022 Federal Legislative Agenda
267
Prepared by Thorn Run Partners for the
Visalia City Council
Mayor Steve Nelsen Vice-Mayor Brian Poochigian
Council Member Greg Collins Council Member Brett Taylor Council Member Liz Wynn
Questions regarding the information in this book may be directed to:
Greg Burns Leslie Caviglia
(202) 849-8523 (559) 713-4317
March 2022
268
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City of Visalia, California
2022 Federal Legislative Agenda
Transportation and Infrastructure
Infrastructure Investment
Monitor implementation of the Infrastructure and Investment and Jobs Act. Support all opportunities to secure funding for the City of Visalia’s infrastructure priorities. Support continued federal investment in infrastructure, including water infrastructure and for the transition to electric vehicles, charging infrastructure, and electric grid reliability. Support the City’s investment in public and active transportation priorities and any efforts to secure federal funding.
Alternative Fuel Tax Incentives
Support the retroactive extension of a $0.50 per gallon equivalent tax incentive for natural gas when used as a motor fuel.
Federal Aviation Administration Authorization; Airport Improvement Program Support adequate annual appropriations for the Airport Improvement Program. Support any City of Visalia airport grant proposals through the FAA’s Airport Improvement Program.
Water Resources and Environment
Central Valley Water Resources
Support efforts to improve water resources in the San Joaquin Valley and the State of California, including supporting additional storage, protecting existing storage facilities, and supporting funding for water recharge, conservation efforts, and other tools that would help the Kaweah Basin reach its sustainability goals as outlined in the Mid-Kaweah Groundwater Sustainability Plan. Monitor Bureau of Reclamation water release proposals as they relate to the San Joaquin River Restoration Program.
National Flood Insurance Program
Monitor Congressional activities related to the reauthorization of the National Flood Insurance Program, particularly with regard to the cost of flood insurance in Visalia. Oppose future attempts to force residual risk or other premiums onto homeowners behind certified flood control structures. Monitor FEMA’s implementation of the Risk Rating 2.0 program. Monitor FEMA’s next steps regarding changes to the NFIP Floodplain Management Standards.
Wildfire Policy
Support efforts to reform federal wildfire budgeting to enable the Forest Service to use more of their annual budget on forest management rather than fire suppression. Support using disaster funding to respond to forest fires and provide robust post-fire mitigation money to improve future fire prevention and forest health activities to improve air quality in the region and the health our forests.
Waters of the United States
Monitor activity related to the Waters of the U.S. rule. Oppose aspects of the rule that would negatively affect the City of Visalia.
Clean Air Act
Support the San Joaquin Valley Air Pollution Control District’s efforts to seek improvements to the Clean Air Act, including routine review of health-based air quality standards, clean air objectives that are technology-forcing, and clean-air deadlines that ensure expeditious clean-up and timely action. Support 269
- Page 2 -
amendments to the Act to eliminate current confusion, restore Congressional leadership in clean air policy, and maintain and strengthen the health protection core of the Act.
Public Safety
Federal Funding of Public Safety Programs
Support continued adequate funding for the wide variety of Department of Justice and Department of Homeland Security grants, i.e., Community Oriented Policing Services, Byrne Justice Assistance Grants, Emergency Management Performance Grants, Assistance to Firefighters Grants, and Staffing for Adequate Fire and Emergency Response Grants. Support the City of Visalia’s application for these funds.
Police Reform
Monitor federal police reform proposals for impacts to local public safety officers.
Cannabis Legislation
Monitor federal marijuana policy that may impact the City of Visalia.
Social Services & Economic Development
Homeless Assistance
Support increased annual funding for Department of Housing and Urban Development Homeless Assistance Grants, including the Continuum of Care program, and for other types of funding that would assist local governments in helping address issues and provide options for people experiencing homelessness, including mental health funding. This includes supporting other agencies that may garner funding to be used locally, such as the Tulare/Kings Continuum of Care, which in FY 2020 received $2.5 million in federal formula funding which was distributed to several local service providers to help address homelessness.
Affordable Housing
Support legislation to improve the availability of low-income housing, including through the Low- Income Housing Tax Credit. The Low-Income Housing Tax Credit (LIHTC) program has been the most significant federal resource for creating affordable housing in the United States today. Created in 1986, the LIHTC gives State and local LIHTC-allocating agencies the equivalent of approximately $8 billion in annual budget authority to issue tax credits for the acquisition, rehabilitation, or new construction of rental housing targeted to lower-income households. An average of almost 1,400 projects and 106,400 units were placed in service annually between 1995 to 2018. In California, the LIHTC-administering agency is the California Tax Credit Allocation Committee.
Department of Housing and Urban Development Formula Programs Support adequate funding for the Community Development Block Grant and HOME Investment Partnerships programs for future fiscal years.
Economic Development Administration Programs
Support continued funding of the Economic Development Administration which often funds infrastructure projects, including several over the past decade in Visalia. Support City of Visalia Economic Development Administration grant applications.
Supplemental Nutrition Assistance Program
Support funding of the Supplemental Nutrition Assistance Program (SNAP) to help food-insecure families, stimulate local economies, and relieve pressure on other human services programs.
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General Government Issues
National Park Service – Sequoia Shuttle and Park Fees
Support the Sequoia Shuttle partnership between the National Park Service and the City of Visalia.
Oppose significant increases to park entrance fees that would negatively impact tourism and the ability of City residents to visit the Park.
Siting of Wireless Facilities
Oppose legislation that would preempt local government control and force local governments to lease publicly-owned infrastructure for the installation of “small cell” wireless towers. 271
Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 22-0259 Agenda Date: 7/18/2022 Agenda #: 14.
Agenda Item Wording:
Authorize City Manager to execute a new lease agreement with Tulare County Office of Education for the continued lease for a portion of the Manuel F. Hernandez Community Center for operation of the Tulare County Early Childhood Education Program.
Deadline for Action: 7/30/2022
Submitting Department: Community Services
Contact Name and Phone Number: Laurissa Roggenkamp 713-4336 Department Recommendation:
Staff recommends that City Council authorize the City Manager to execute a new lease agreement with Tulare County Office of Education for the continued lease of a portion of the Manuel F.
Hernandez Community Center for an initial term of one year with the option for an additional one-year extension.
Background Discussion:
The City of Visalia has had a long partnership with the Tulare County Office of Education (TCOE) for the purpose of providing pre-school programming for families in Visalia. This partnership has consisted of TCOE leasing the Fairview Community Center and portions of the Manuel F. Hernandez Community Center. Council authorized the execution of the Fairview Community Center lease agreement on January 6, 2020, with a retroactive term start of July 1, 2019, for an initial term of five- years with up to two additional five-year terms. The longer-term lease for Fairview was favorable for TCOE as it provided them with the opportunity to qualify for additional grant funding for facility improvements.
The use of Manuel F. Hernandez Community Center has continued on a month-to-month basis since the prior lease agreement expired on July 1, 2019. This proposed lease agreement, with Council authorization, will be execute as of July 1, 2022, for an initial one-year term with one additional one- year extension for a maximum term of two years with an end date of June 30, 2024.
Fiscal Impact:
The new proposed lease amount is $19,030.12 for the first year of the agreement. The amount for any extended portion of the lease amount shall be adjusted annually by using the Consumer Price Index (CPI) for All Urban Consumers as published by the U.S. Bureau of Labor Statistics.
Additionally, TCOE shall pay a proportional share of all utilities and landscape maintenance charges based on total square footage.
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File #: 22-0259 Agenda Date: 7/18/2022 Agenda #: 14.
Prior Council Action:
January 1, 2019 - Council authorized lease agreement for Fairview Community Center with an initial five-year term to end.
July 13, 2009 - Council authorized execution of lease agreements for both the Manuel F. Hernandez and Fairview Community Centers with an initial five-year term to end on June 20, 2014, with one five- year extension option.
Other: N/A
Alternatives: Per Council direction.
Recommended Motion (and Alternative Motions if expected):
I move to authorize the City Manager to execute a new lease agreement with the Tulare County Office of Education for the continued lease of the portions of the Manuel F. Hernandez Community Center for an initial term of one-year, with the option to extend for one additional year.
Environmental Assessment Status: N/A
CEQA Review: N/A
Attachments: Lease Agreement Between the City of Visalia and Tulare County Office of Education for the Manuel F. Hernandez Community Center.
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1 LEASE AGREEMENT BETWEEN
THE CITY OF VISLAIA (CITY) AND
TULARE COUNTY OFFICE OF EDUCATION
Manuel F. Hernandez Community Center
This LEASE AGREEMENT made and entered into this ____ day of ____________, 2022, by and between the CITY OF VISALIA, a Municipal Corporation and charter law city of the State of California (hereinafter “CITY” or “LESSOR”), and TULARE COUNTY OFFICE OF EDUCATION for its Child Care Educational Program, (hereinafter referred to as the “LESSEE”). CITY and LESSEE may be individually referred to herein as a “Party” and may be collectively referred to herein as the “Parties.”
For and in consideration of the payment of rent, taxes, and other charges and of performance of the covenants and conditions hereinafter set forth, LESSOR hereby Leases to LESSEE a portion of the real property located at 2 47 W. Ferguson, and situated in th e City of Visalia, County of Tulare, State of California, more particularly and legally described as set forth in Paragraph 1B. below.
1. DEMISED PREMISES
A. Definition - Except as expressly provided to the contrary in this Agreement, reference to “Demised Premises” is to the described land plus any described appurtenances, including any improvements (including LESSEE’s improvements), now or hereafter located on the Demised Premises, without regard to whether ownership of the improvements is in the LESSOR or in the LESSEE.
B. Description – Portions of the real property located at 247 W. Ferguson, and situated in the City of Visalia, County of Tulare, State of California, including specifically: the classroom known as ‘Room 2’ and attached fenced in outdoor area, the kitchen facility, pantry space adjacent to kitchen facility, and use of parking lot.
2. TERM
The term of this Agreement shall be for a period of one (1) year commencing on the 1st day of July 2022 and ending on the 30th day of June 2023, with an additional one (1) year extension for a maximum end date on the 30th of June, 2024, unless sooner terminated as provided for herein.
3. EARLY TERMINATION
This Agreement may be terminated prior to the date specified in section 2 of this Lease Agreement under any of the follow ing circumstances. In the event of termination of this Agreement as provided herein, the LESSOR and LESSEE shall be under no further obligation or liability to each other by reason of the Agreement, and any prior rental payments will be prorated accordingly. Any rents due to LESSOR will be paid through the effective date of termination of this Agreement.
A. Loss of Funding: It is understood that LESSEE is dependent upon funds from other Governmental and private sources. If a reduction in such funding renders LESSEE unable to maintain its program, LESSEE shall have the right to terminate this Agreement by providing LESSOR with ninety (90) days prior written notice. The determination as to whether sufficient funds are available to operate shall be within the sole discretion of LESSEE.
B. Expansion of Program: If an increase in available funding allows LESSE E to expand its program to such an extent that the premises are no longer adequate to house the program activities, LESSEE shall have the right to terminate this Agreement by providing LESSOR with ninety (90) days prior written notice. The determination as to whether the premises provide adequate space to house the program shall be within the sole discretion of LESSEE.
C. Mutual Consent: Both parties may terminate this lease Agreement at any time by written mutual consent.
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2 4. LEASE RENT
A. LESSEE shall pay without abatement, deduction or affect, a net minimum annual rent of nineteen thousand thirty dollars and twelve cents ($19,030.12), all due and payable in equal quarterly installments of four thousand seven-hundred fifty-seven dollars and fifty-three cents ($4,757.53) beginning on the 1st day of July 2022. Should this Agreement be extended for any reason beyond the annual term, lease amount shall be adjusted annually by using the Consumer Price Index for All Urban Consumers as published by the U.S. Bureau of Labor Statistics.
B. All payments are due thirty (30) days from the invoice by City. Rent will be considered delinquent if CITY does not receive payment within sixty (60) days of invoice. In the event LESSEE is delinquent in remitting rent, then the rent not paid when due shall bear interest at the rate of eighteen percent (18%) per annum from the date due until paid.
5. USE OF DEMISED PREMISES
A. Defined - LESSEE shall have the right and obligation to use said premises for the purpose of operating a child care center and for the purpose of carrying out the needs of the program, and for no other business or purpose whatsoever without the written consent of LESSOR. Leased space is defined as the Demised Premises as identified in paragraph 1.B., playground, and grounds.
LESSEE shall not have the right or obligation to use the Demised Premises for any other purpose, nor shall LESSEE provide any other service without express written consent of the LESSOR.
B. Use Obligation - LESSEE shall actively and continuously use and operate the Demised Premises for the limited and particular exclusive use as expressly provided for above, except for failure to so use caused by reason of wars, strikes, riots, civil commotion, acts of public enemies, and acts of God. LESSEE, however shall not and is expressly prohibited from using the Demised Premises for any other purpose or use whatsoever whether it is purported to be in addition to or in lieu of the particular exclusive use set forth above.
6. UTILITIES AND TAXES
LESSEE will pay promptly, when and as the same shall become due and payable, all rates, tolls and charges for utilities that shall be used by said LESSEE on said premises . LESSEE understands and agrees that they will pay, in addition to the quarterly rental charge, a proportional share of all utility and landscape maintenance charges based on total square footage . LESSEE shall pay all taxes levied or assessed upon all personal property and fixtures owned by LESSEE and located in said premises.
LESSOR will pay all real property taxes and assessments levied upon the premises by whatever governmental entity during the term hereof.
7. BUSINESS LICENSE
LESSEE shall obtain a business license as paid by all people in similar circumstances, within the City of Visalia.
8. ASSIGNMENT
The LESSEE shall not assign or transfer the whole or any part of this Agreement or any interest herein, nor the whole or any part of the Demised Premises, nor contract for the management or operation of the whole or any part of the Demised Premises, nor permit the occupancy of any part thereof by any other person, nor permit transfer of the Lease or possession of the Demised Premises by merger, consolidation or dissolution, nor permit sale of a controlling interest in the voting stock in said corporation. Nothing herein contained shall be construed to prevent the occupancy of said Demised Premises by any employee or business invitee of LESSEE.
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3 9. REPAIRS AND MAINTENANCE
A. LESSEE’S Responsibility for Maintenance and Repair - Except as otherwise provided in section B below, throughout the term of this Agreement, at LESSEE’s sole cost and expense, LESSEE shall be responsible for operating and maintaining the condition, repair and maintenance of the Premises and any permitted Improvements or Alterations, including but not limited to the irrigation system, parking lots, building interiors, building improvements (except as noted in Section B below), perimeter fencing, trees, and landscape from and after the Commencement Date. In addition, if any portion of the Premises or any of the City’s property located on or about the Premises is damaged by any of the activities conducted by LESSEE or its Agents or Invitees hereunder, LESSEE shall repair any and all such damage and restore the Premises or City’s property to its previous condition.
LESSEE must comply with State of California required regular playground inspections. LESSEE must maintain daily health and safety checklist inspections leading to monthly summaries, assuring that all equipment is safe and secure. The LESSEE must document all repairs in a playground inspection report available upon request by the LESSOR.
B. City’s Responsibility for Maintenance and Repair - City shall be responsible for t he “Major Maintenance” of the Premises, which shall be defined as, but not be limited to, maintenance, repair, and replacement of main systems on the Premises; which shall include, but not be limited to, the HVAC system, electrical and plumbing systems, or any other systems, consisting of work valued at over $2,500.00; and all other items determined by the Parties to be “Major Maintenance” of the Premises. LESSEE shall be responsible for all other costs of maintaining and operating the Premises. All Major Maintenance repairs by City must be conducted solely by City, in a timely fashion, and approved by City and LESSEE, so as not to disturb primary operations of LESSEE, in writing in advance of any work being conducted on the Premises.
C. LESSOR, or LESSORs agents, shall have the right of ingress and egress from the leased premises at all reasonable times during the Agreement term for the purpose of inspecting the same.
10. MODIFICATIONS
It is understood and agreed by and between the parties hereto that any alterations, modifications, or additions to the structural improvements, including landscaping and the paint colors, on the leasehold Demised Premises by the LESSEE can only be instituted by first obtaining written approval of the LESSOR of the plans, locations and specifications of said structural changes. Alterations, modifications, or additions to the interiors of the improvements shall not be considered structural, provided LESSEE receives permission prior to commencement of construction and agrees to provide LESSOR one set of “as built” plans for said changes within 60 days of completion. All such improvements and alterations shall conform to building codes and zoning regulations now or hereafter legally effective and promulgated by appr opriate governmental authority. Modifications must also comply with all local, State and Federal requirements applicable to improvements on City of Visalia property and any funding sources used.
11. OWNERSHIP OF IMPROVEMENTS - Throughout the term of this Agreement, all improvements identified above, shall be owned by LESSOR. LESSEE shall not remove any improvements from the Demised Premises nor waste, destroy, or modify any improvements on the Demised Premises, except as permitted by this Agreement. All such i mprovements or alterations shall, at the expiration of the term hereof, be and remain in the leased premises and become the property of said LESSOR; provided, however, that LESSEE shall have the right to remove all trade fixtures which LESSEE may own or place in the leased premises during the Agreement term, provided that LESSEE shall not then be in default in the performance of any of the terms of this Agreement, that any such removal shall be effected before the expiration of the Agreement term, and that all damage caused to the leased premises by such removal shall be repaired by LESSEE on or before the expiration of the term hereof. The parties covenant for themselves and all perso ns claiming under them that the improvements are personal property.
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4 12. APPEARANCE
LESSEE shall maintain the Demised Premises to the reasonable satisfaction of the LESSOR, and in such a manner that said Premises will be neat and well kept in appearance.
13. WARRANTIES - GUARANTEES – COVENANTS
LESSOR makes no warranty, guarantee, covenant, including but not limited to covenants of title and quiet enjoyment, or averment of any nature whatsoever concerning the condition of the Demised Premises, including the physical condition thereof, or any condition which may affect the Demised Premises, and it is agreed that LESSOR will not be responsible for any loss, damage or cost which may be incurred by LESSEE by reason of any such condition or conditions.
14. INSURANCE - FIRE - Throughout the term of this Agreement, at LESSEE’s sole cost and expense, LESSEE shall keep or cause to be kept insured for the mutual benefit of the LESSOR, the LESSEE and the holder of any security interest therein, all improvements to the Demised Premises erected thereupon by the LESSEE, against loss or damage by fire and such other risks as are now or hereafter included in extending coverage endorsements in common use for commercial structures, including vandalism or malicious mischief. The amount of the insurance shall be sufficient to prevent eit her LESSOR or LESSEE from becoming a coinsurer under the provisions of the policies, but in no event shall the amount be less than the “Full Actual Replacement Value”. Full Actual Replacement Value, as used herein, means the cost of repairing, replacing, o r reinstating, including demolishing, any item or property with materials of like kind and quality in compliance with any law or ordinance regulating repair or construction at the time of loss, without deduction for physical, accounting, or any other depreciation. LESSOR shall not carry any insurance the effect of which, would be to reduce the protection or payment to LESSEE under any insurance that this Agreement obligates LESSEE to carry.
If any dispute, whether the amount of insurance complies with the above, cannot be resolved by agreement, LESSOR may, not more often than once every 12 months, request the carrier of the insurance then in force to determine the full insurable value as defined in this provision, and the resulting determination shall be conclusive between the parties for the purpose of this paragraph.
LESSEE may include the holder of any mortgage on the leasehold or on the fee or both as a loss payee; on the LESSOR’s notice of demand LESSEE shall include the holder of any mortgage on the fee as a loss payee to the extent of that mortgage interest. LESSOR shall, at LESSEE’s cost and expense, cooperate fully with LESSEE to obtain the largest possible recovery, and all policies of fire extended coverage insurance required by LESSOR shall provide that the proceeds shall be paid to LESSEE as follows:
A. The proceeds shall be deemed to be held in trust by the recipient to the uses and purposes prescribed by this Agreement.
B. Payments of the proceeds for repair, restoration, or reconstruction of improvements shall be made monthly on LESSOR’s certificates until the work is completed and accepted.
C. Any insurance proceeds remaining after complying with the provisions of this Agreement relating to maintenance, repair, and reconstruction of improvements shall be the LESSEE’s sole property.
15. INSURANCE – LIABILITY
Throughout the term of this Agreement, at LESSEE’s sole cost and expense, LESSEE shall keep or cause to be kept in force, for the mutual benefit of LESSOR and LESSEE, comprehensive broad form general liability insurance against any and all claims and liability for personal injury, death, or property damage arising out of the use, occupancy, disuse or condition of the Demised Premises, personal property thereon, improvements or adjoining areas of ways, providing combined single limit of at least One Million Dollars ($1,000,000.00), for any one accident or occurrence, for bodily injury or death to one or more persons, and at least Five Hundred Thousand Dollars ($500,000.00) for Property damage.
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5 16. INSURANCE - WORKERS COMPENSATION
LESSEE shall maintain Worker’s Compensation insurance with statutory limits, and employer’s liability insurance with limits of not less th an One Million Dollars ($1,000,000.00) per accident or occurrence.
17. INSURANCE - GENERAL REQUIREMENTS
All insurance required by express provisions of this Agreement shall be carried only in responsible insurance companies licensed to do business in the State of California. All such policies shall be nonassessable and shall contain language, to the extent obtainable, to the effect that:
A. Any loss shall be payable notwithstanding any act or negligence of LESSOR that might otherwise result in a forfeiture of the insurance.
B. The insurer waives the right of subrogation against LESSOR and against LESSOR’s agents and representatives.
C. The policies are primary and noncontributing with any insurance that may be carried by LESSOR.
D. The Policies cannot be canceled or materially changed except after 30 days written notice by the insurer to LESSOR or LESSOR’s designated representative.
E. LESSEE shall furnish LESSOR with copies of all s uch policies promptly on receipt of them, or with certificates evidencing the insurance. Before commencement of the Agreement, LESSEE shall furnish LESSOR with binders representing all insurance requirements by this Agreement. LESSEE may effect for its own account any insurance not required under this Agreement. LESSEE may provide by blanket insurance covering the Demised Premises and any other location or locations any insurance required or permitted under this Agreement provided it is acceptable to all mortgagees. LESSEE shall deliver to LESSOR, in the manner required for notices, copies of certificates of all insurance policies required by this Agreement, together with evidence satisfactory to LESSOR of payment required for procurement and maintenance of the policy, within the following time limits:
i. For insurance required at the commencement of this Agreement, within 30 days after execution of this Agreement;
ii. For insurance becoming required at a later date, at least 15 days before the requirements takes effect, or as soon thereafter as the requirement, if new, takes effect; iii. For any renewal or replacement of a policy already in existence, at least 30 days before expiration or other termination of the existing policy.
F. LESSOR, and LESSOR’s elected and appointed officials, agents, representatives, and employees are to be named as additional insureds under the policy(ies).
If LESSEE fails or refuses to procure or to maintain insurance as required by this Agreement or fails to furnish LESSOR with required proof that the insurance has been procured and is in force and paid for, LESSOR shall have the right, at LESSOR’s election and on five (5) days notice to LESSEE, to procure and maintain such insurance. The premiums paid by LESSOR shal l be treated as added rent due from LESSEE with interest at the rate of 18% per year, to be paid on the first day of the month following the date on which the premiums were paid. LESSOR shall give prompt notice of the payment of such premiums, stating the amounts paid and the names of the insurer or insurers, and interest shall run from the date of the notice.
18. INDEMNIFICATION
LESSEE agrees to and shall defend and indemnify LESSOR and LESSOR’s elected and appointed officials, agents, representatives and employees against all claims, liability, loss and expense caused or incurred by reason of injury to person or property, or both , including without limitation, injury to the person or property of LESSEE, its agents, officers and employees, arising out of the condition of the Demised Premises or any operations thereof conducted thereupon or therefrom caused by any act or omission or commission by LESSEE, its agents, officers, employees, or invitees, or any other cause 278
6 whatsoever, or caused by LESSOR, its agents, officers, employees, or invitees, or any other cause whatsoever, specifically to include the sole active negligence of LESSOR, its agents or employees.
19. DEFINITION OF DEFAULT BY LESSEE
Each of the following events shall be a default by LESSEE and a material breach of this Agreement.
A. Abandonment or surrender of the Demised Premises or of the leasehold estate, or failure or refusal to pay when due any installment of rent or any other sum required by this Agreement to be paid by LESSEE, or to perform as required or conditioned by any other covenant or condition of this Agreement.
B. The subjection of any right or interest of LESSEE t o attachment, execution, or other levy, or to seizure under legal process, if not released within 10 days provided that the foreclosure of any mortgage permitted by provisions of this Agreement relating to purchase or construction of improvements shall not be construed as a default within the meaning of this paragraph.
C. The encumbrance of the Agreement, leasehold estate and improvements thereon without the express consent of LESSOR.
D. The appointment of a receiver to take possession of the Demised Premises, or improvements or of LESSEE’s interest in the leasehold estate, or of LESSEE’s operation on the Demised Premises for any reason, including but not limited to, assignment for benefit of creditors or voluntary or involuntary bankruptcy proceedings, but not including receivership (1) pursuant to administration of the estate of any deceased or incompetent LESSEE, or (2) instituted by LESSOR, the event of default being not the appointment of a receiver at LESSOR’s insistence, but the event justifying the receivership, if any.
E. An assignment by LESSEE for the benefit of creditors or the filing of a voluntary or involuntary petition by or against LESSEE under any law for the purpose of adjudication of LESSEE’s liabilities; or for reorganization, dissolution, or arrangement on account of or to prevent bankruptcy or insolvency; unless the assignment or proceeding, and all consequent orders, adjudications, custodies, and supervisions are dismissed, vacated, or otherwise permanently stayed or terminated within 30 days after the assignment, filing or other initial event.
F. Failure to maintain said Demised Premises as required pursuant to the terms of this Agreement.
20. NOTICE OF DEFAULT
As a precondition to pursuing any remedy for an alleged default by LESSEE, LESSOR shall, before pursuing any remedy, give notice of default to LESSEE and to all qualifying subtenants whose names and addresses were previously given to LESSOR in a notice or notices from LESSEE. A qualifying subtenant is a subtenant in possession under an existing sublease which is proper under this Agreement.
If the alleged default is nonpayment of rent, taxes, or other sums to be paid by LESSEE as provided in the paragraph on rent, or elsewhere in this Agreement directed to be paid as rent, LESSEE shall have 10 days after notice is given to cure the default. For the cure of any other default, LESSEE shall promptly and diligently after the notice commence to cure the default and shall have 10 days after notice is given to complete the cure plus any additional period that is reasonably required for the curing of the default. After expiration of the applicable time for curing a particular default, or before the expiration of that time in the event of emergency, LESSOR may at LESSOR’s election, but is not obligated to, make any payment required of LESSEE under this Agreement or perform or comply with any covenant or condition imposed on LESSEE under this Agreement and the amount so paid plus the reasonable cost of any such performance or compliance, plus intere st on such sum at the rate of 10% per year from the date of payment, performance, or compliance (herein called “Act”), shall be deemed to be additional rent payable by LESSEE with the next succeeding installment of rent. No such Act shall constitute a waiver of default or of any remedy for default or render LESSOR liable for any loss or damage resulting from any such Act.
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7 21. REMEDIES IN THE EVENT OF DEFAULT
If any default by LESSEE shall continue uncured, following notice of default as required by this Agreement, for the period applicable to the default under the applicable provision of this Agreement, LESSOR has the following remedies in addition to all othe r rights and remedies provided by law or equity, to which LESSOR may resort cumulatively or in the alternative:
A. LESSOR may, at LESSOR’s election, terminate this Agreement by giving LESSEE notice of termination. On the giving of the notice, all LESSEE’s rig ht in the Demised Premises and in all improvements shall terminate. Promptly after notice of termination, LESSEE shall surrender and vacate the Demised Premises and all improvements in broom -clean condition, and LESSOR may re-enter and take possession of t he Demised Premises and all remaining improvements and eject all parties in possession or eject some and not others or eject none; provided that no subtenant qualifying under nondisturbance provisions of this Agreement shall be ejected. Termination under this paragraph shall not relieve LESSEE from the payment of any sum then due to LESSOR or from any claim for damages previously accrued or then accruing against LESSEE.
B. LESSOR may, at LESSOR’s election, re-enter the Demised Premises, and, without terminating this Agreement, at any time and from time to time relet the Demised Premises and improvements or any part or parts of them for the account and in the name of the LESSEE or otherwise. LESSOR shall apply all rents from reletting as in the provision on assignment of subrents. Any reletting may be for the remainder of the term or for a longer or shorter period. LESSOR may execute any Agreements made under this provision either in LESSOR’s name or in LESSEE’s name and shall be entitled to all rents from the use, operation, or occupancy of the Demised Premises or improvements or both. LESSEE shall nevertheless pay to LESSOR on the due dates specified in this Agreement the equivalent of all sums required of LESSEE under this Agreement, plus LESSOR’s expenses, less the avails of any reletting or attornment. No act by or on behalf of LESSOR under this provision shall constitute a termination of this Agreement unless LESSOR gives LESSEE notice of termination.
C. LESSOR may, at LESSOR’s election, use LES SEE’s personal property and trade fixtures or any of such property and fixtures without compensation and without liability for use or damage, or store them for the account and at the cost of LESSEE.
D. LESSOR shall be entitled, at LESSOR’s election, to each installment of rent or to any combination of installments for any period before termination, plus interest at the rate of 10 percent per year from the due date of each installment. Avails of reletting or attorned subrents shall be applied, when received, as follows: (1) to LESSOR to the extent that the avails for the period covered do not exceed the amount due and charged to LESSEE for the same period, and (2) the balance to LESSEE. LESSOR shall make reasonable efforts to mitigate LESSEE’s liabil ity under this provision. LESSOR shall be entitled at LESSOR’s election to damages in the following sums: (1) all amounts that would have fallen due as rent between the time of termination of this Agreement and the time of the claim, judgment, or other award, less the avails of all relettings and attornments and less all amounts by which LESSOR shall reasonably have mitigated those rental losses, plus interest on the balance at the rate of 10 percent per year, and (2) the "worth" at the time of the claim, judgment, or other award, of the amount by which the unpaid rent for the balance of the term exceeds the then fair rental value of the Demised Premises, or the higher/lower of the fair rental value unencumbered by the Agreement and improvements. "Worth", as used in this provision, is computed by discounting the total at the discount rate of the Federal Reserve Bank of San Francisco at the time of the claim, judgment, or award, plus one percent. LESSOR shall not be considered to be in default under this Agreement unless (1) LESSEE has given notice specifying the default and (2) LESSOR has failed for 10 days to cure the default, if it is curable, or to institute and diligently pursue reasonable corrective or ameliorative acts for noncurable defaults. LESSEE wai ves the protections of Civil Code Sections 1932 and 1933.
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8 22. WAIVER OF DEFAULT
No waiver of any default shall constitute a waiver of any other breach or default, whether of the same or any other covenant or condition. No waiver, benefit, privilege, or service voluntarily given or performed by either party shall give the other any contractual right by custom, estoppel, or otherwise.
The subsequent acceptance of rent pursuant to this Agreement shall not constitute a waiver of any preceding default by LESSEE other than that default in the payment of the particular rental payment.
23. LEASE ENCUMBRANCE
LESSEE understands and agrees that it cannot encumber the Lease, leasehold estate and the improvements thereon by a deed of trust, mortgage or other security instrument to assure payment of any promissory note of LESSEE without the prior express written consent of the LESSOR in each instance, which consent shall be at the sole and exclusive discretion of the LESSOR. If any deed of trust, mortgage or other security instrument that encumbers the Agreement, leasehold estate and the improvements thereon is entered into by LESSEE without LESSOR’s prior express written consent, LESSOR shall have the right to declare this Agreement in default.
LESSOR will agree to the subordination of its ownership interest to a construction loan, if any, that LESSEE may need to obtain to finance the costs of the construction of the improvements proposed for the property as set forth in the Lease agreement.
24. EMINENT DOMAIN
If the whole or a substantial part of the Demised Premises hereby leased shall be taken by any public authority under the power of eminent domain, the term of this Agreement shall cease as to the part taken, from the day the possession of that part shall be taken for any public purpose, and the rent shall be paid up to that day, and from that day LESSEE shall have the right either to cancel this Agreement and declare the same null and void or to continue in possession of the remainder of the same under the terms herein provided, except that the rent shall be reduced in proportion to the amount of the Demised Premises taken. All damages awarded for such taking shall belong to and be the property of the LESSOR whether such damages shall be awarded as compensat ion for diminution in value to the leasehold or to the fee of the Demised Premises herein leased, LESSEE’s only remedies being the election of cancellation or reduction in rent; provided, however, that LESSOR shall not be entitled to any award made for the taking of any installation or improvements on the Demised Premises belonging to LESSEE.
25. ATTORNEYS’ FEES
If either party brings any action or proceeding to enforce, protect, or establish any right or remedy, the prevailing party shall be entitled to recov er reasonable attorneys’ fees. Arbitration is not an action or proceeding for the purpose of this provision.
26. NOTICES
As used in this Agreement, “notice” includes, but is not limited to, the communication of notice, request, demand, approval, statement, report, acceptance, consent, waiver, and appointment. No notice of the exercise of any option or election is required unless the provision giving the election or option expressly requires notice. Unless the provision of this Agreement on rent direct otherwise, rent shall be sent in the manner provided for giving notice.
A. Writing. All Notices must be in writing, provided that no writing other than the check or other instruments representing the rent payment itself need accompany the payment of rent.
B. Delivery. Notice is considered given either (a) when delivered in person to the recipient named as below, or (b) on the date shown on the return receipt after deposit in the United States mail in a sealed envelope or container, either registered or c ertified mail, return receipt requested, postage 281
9 and postal charges prepaid, addressed by name and address to the party or persons intended as follows:
Notice to LESSOR: City of Visalia
City Clerk
220 N. Santa Fe St.
Visalia, CA 93292
Copy to: City of Visalia
Leases
707 W. Acequia
Visalia, CA 93291
Notice to LESSEE: Tulare County Office of Education
P.O. Box 5091
Visalia, CA 93278-5091
Copy to: Tulare County Office of Education – Early Childhood Education 7000 Doe Ave, Suite C
Visalia, CA 93291
C. Change of recipient or address. Either party may, by notice given at any time or from time to time, require subsequent notices to be given to another individual person, whether a party or an officer or representative, or to a different address, or both. Notices given before actual receipt of notice of change shall not be invalidated by the change.
D. Recipient named. Each recipient named must be an individual person. If more that one recipient is named, delivery of notice to any one such recipient is sufficient. If none of the recipients named in the latest designation of recipient is available for delivery in person, and if the notice addressed by mail to each recipient named in the latest designation of re cipient is returned to the sender undelivered, notice shall be sufficient if sent by mail as above to the party as named in this Agreement, unless the name or identity of the party has changed as permitted in this Agreement and proper notice of the change has been given, in which event the notice shall be sufficient if sent by mail as above to the party named in the latest designating party, and the notice is considered given when the first attempt to give notice was properly made.
27. SIGNS
LESSEE agrees that no signs will be painted or erected on the subject Demised Premises unless such signage is first approved in writing by LESSOR and is also approved by the City of Visalia in its governmental capacity. All signage painted or erected on the subject Demised Premises or off -site signage for the benefit or use of LESSEE, shall be in compliance with the City of Visalia ordinance related to signs, zoning and building regulations.
28. AFFECT OF ILLEGALITY
The invalidity or illegality of any provision shall not affect the remainder of the Agreement.
29. RELOCATION
LESSOR shall have the right upon six (6) months notice to relocate LESSEE to another location.
LESSOR shall be responsible for the cost of moving fixed equipment to the new location. LESSEE agrees that LESSOR will pay no penalties, relocation allowances, damages, or other fees except as 282
10 stipulated. LESSOR agrees that the rental fees will remain as stated in this contract, should a relocation become necessary, for the balance of the term.
30. TERMINATION RIGHTS
The LESSEE shall have the right to terminate this AGREEMENT in the event the LESSOR exercises the right of paragraph 36. LESSEE shall have the right to terminate this Agreement any time during the sixty (60) day period following receipt of notice of relocation.
31. SURRENDER ON TERMINATION
At the expiration or earlier termination of the term, LESSEE shall surrender to LESSOR the possession of the Demised Premises. Surrender or removal of improvements, fixtures, and trade fixtures shall be as directed in above provisions of this Agreement on ownership of improvements at termination.
LESSEE shall leave the surrendered Demised Premises and any other property in good an d broom- clean condition except as provided to the contrary in provisions of this Agreement on maintenance and repair of improvements. All property that LESSEE is required to surrender shall become LESSOR’s property at the termination of the Agreement. All property that LESSEE is not required to surrender but that LESSEE does abandon shall, at LESSOR’s election, become LESSOR’s property at termination. If LESSEE fails to surrender the Demised Premises at the expiration or sooner termination of this Agreement, LESSEE shall defend and indemnify LESSOR from all liability and expense resulting from the delay or failure to surrender, including, without limitation, claims made by any succeeding tenant founded on or resulting from LESSEE’s failure to surrender.
32. HOLDOVER
This Agreement shall terminate without further notice at expiration of the Agreement term. Any holding over by LESSEE after either expiration or termination shall not constitute a renewal or extension, or give LESSEE any rights in and to the Demised Premises. If LESSEE, with LESSOR’s consent, remains in possession of the Demised Premises after expiration or termination of the term or after the date in any notice given by LESSOR to LESSEE terminating this Agreement, such possession by LESSEE shall be deemed to be a month -to-month tenancy terminable on thirty (30) days’ notice given at any time by either party. During any such month-to-month tenancy, LESSEE shall continue to pay all rent required by this Agreement. All other provisions of this Agreement, except those pertaining to term, shall apply to the month-to-month tenancy.
33. TIME IS OF THE ESSENCE
Time is of the essence of each and all of the terms and provisions of this Agreement and this Agreement shall inure to the benefit of and be bindin g upon the parties hereto and any successors of LESSEE as fully and to the same extent as though specifically mentioned in each instance, and all covenants, stipulations and agreements in this Agreement shall extend to and bind any successors and sublessees of LESSEE.
34. ACCEPTANCE OF DEMISED PREMISES
By signing this Agreement, LESSEE represents and warrants that LESSEE has independently inspected the Demised Premises and made all tests, investigations, and observations necessary to satisfy itself of the cond ition of the Demised Premises. LESSEE agrees it is relying solely on such independent inspection, tests, investigations, and observations in making this Agreement. LESSEE further acknowledges that the Demised Premises are in the condition called for by this Agreement, and that LESSEE does not hold LESSOR responsible for any defects in the Demised Premises.
35. ENTIRE AGREEMENT
This Agreement contains the entire Agreement between the parties. No promise, representation, warranty, or covenant not included in this Agreement has been or is relied on by either party. Each 283
11 party has relied on his own examination of this Agreement, counsel of his own advisors and the warranties, representations, and covenants if any, in the Agreement itself. The failure or refusal of either party to inspect the Demised Premises or improvements, to read the Agreement or other documents, or to obtain legal or other advise relevant to this transact ion constitutes a waiver of any objection, contention, or claim that might have been based on such reading, inspection or advise.
For good and adequate consideration, LESSOR leases the Demised Premises to LESSEE, and LESSEE hires from LESSOR, for the term and on the provisions contained in the Agreement including, without limitation, provisions prohibiting assignment, subleasing, and encumbering said Agreement without the express written consent of LESSOR in each instance.
36. VENUE
This contract is to be construed by the laws of the State of California with venue only in Tulare County, or the United States District Court for the Eastern District of California.
TULARE COUNTY OFFICE OF EDUCATION, LESSEE CITY OF VISALIA, LESSOR
Tim A. Hire, County Superintendent of Schools Leslie Caviglia, City Manager Dated: ______________, 2022 Dated: __________________, 2022
APPROVED AS TO FORM:
Ken Richardson, City Attorney
Dated: __________________, 2022
Diane Lopez, Risk Management
Dated: __________________, 2022
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Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 22-0290 Agenda Date: 7/18/2022 Agenda #: 1.
Agenda Item Wording:
Conduct a Public Meeting to renew the Visalia Tourism Marketing District.
Deadline for Action: 7/18/2022
Submitting Department: Administration
Contact Name and Phone Number: Leslie B. Caviglia, City Manager Department Recommendation:
It is recommended that the Visalia City Council open public testimony to allow members of the public to provide comments on the renewal of the Visalia Tourism Marketing District (VTMD).
Background Discussion:
The VTMD is a benefit assessment district designed to help fund sales & marketing and destination development programs for certain Visalia lodging businesses. This approach has been used successfully in other destination areas throughout the state to improve tourism and drive demand for additional room nights to assessed lodging businesses. The renewed VTMD shall include all lodging businesses with twenty (20) rooms or more located within the boundaries of the City of Visalia (City), as shown on the map in the Management District Plan.
Lodging business owners decided to pursue renewal of the VTMD in order to continue a revenue source devoted to marketing Visalia as a tourist, meeting and event destination. If renewed, the VTMD would generate approximately $650,000 on an annual basis for promotion of travel and tourism specific to Visalia.
The VTMD shall be renewed pursuant to the Property and Business Improvement District Law of 1994 (94 Law). The 94 Law requires that a public meeting be held prior to the adoption of any new or increased assessment pursuant to Section 54954.6 of the Government Code. The public meeting is the third step in the VTMD renewal process and is intended to allow public testimony regarding the proposed assessment. No action is taken by the Council during this step.
TOURISM MARKETING DISTRICTS
Tourism Marketing Districts (TMDs) utilize the efficiencies of private sector operation in the market- based promotion of tourism. These special assessment districts allow lodging business owners to organize their efforts to increase tourism. Lodging business owners within the TMD fund the TMD, Visalia City Council Printed on 7/15/2022Page 1 of 3
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organize their efforts to increase tourism. Lodging business owners within the TMD fund the TMD, and those funds are used to provide services that are desired by and benefit the lodging businesses within the TMD.
TMD benefits:
Ø Funds cannot be diverted for other government programs; Ø They are customized to fit the needs of each destination; Ø They allow for a wide range of services; including: destination marketing, tourism promotion, and sales lead generation;
Ø They are designed, created and governed by those who will pay the assessment; and Ø They provide a stable funding source for tourism promotion.
In California, TMDs are primarily formed pursuant to the Property and Business Improvement District Law of 1994 (94 Law). This law allows for the creation of a special benefit assessment districts to raise funds within a specific geographic area. The key difference between TMDs and other special benefit assessment districts is that funds raised are returned to the private non-profit corporation governing the TMD.
MANAGEMENT DISTRICT PLAN
The Management District Plan (Attachment 1) includes the proposed boundary of the renewed VTMD, a service plan and budget, and a proposed means of governance. The VTMD shall include all lodging businesses, existing and in the future, with twenty (20) rooms or more located within the boundaries of the City of Visalia (City).
The renewed VTMD shall have a ten (10) year life, beginning January 1, 2023 through December 31, 2032. The renewed VTMD assessment will be implemented beginning January 1, 2023. Once per year beginning on the anniversary of VTMD renewal there is a thirty (30) day period in which business owners paying fifty percent (50%) or more of the assessment may protest and begin proceedings to terminate the VTMD.
The annual assessment rate is two percent (2%) of gross short-term room rental revenue. Based on the benefit received, assessments will not be collected on: stays of more than thirty (30) consecutive days or stays by representatives or employees of a State or Federal government agency in the performance of their official duties as a representative or employee of the government agency paid for by the government agency.
The City shall be responsible for collecting the assessment on a monthly basis (including any delinquencies, penalties and interest) from each assessed business located in the boundaries of the VTMD. The City shall take all reasonable efforts to collect the assessments from each assessed business. The City retains 1% of the assessments collected as an administrative fee, and receives annual reports on the TMD efforts to confirm that the Plan is being implemented.
VTMD RENEWAL PROCESS
June 6, 2022 RESOLUTION OF INTENTION HEARING [COMPLETED] Upon the submission of a written petition, signed by the business owners in the renewed VTMD who will pay more than fifty percent (50%) of the assessments proposed to be levied, the Visalia Visalia City Council Printed on 7/15/2022Page 2 of 3
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who will pay more than fifty percent (50%) of the assessments proposed to be levied, the Visalia City Council (Council) may initiate proceedings to renew the VTMD by the adoption of a resolution expressing its intention to renew the VTMD.
Petition Status: Petitions in favor of VTMD renewal were submitted by businesses representing over 50% of the total VTMD assessment. This majority petition allows the Council to initiate proceedings for VTMD renewal at the June 6, 2022 meeting.
June 7, 2022 NOTICE [COMPLETED]
The 94 Law requires the City to mail written notice to the owners of all businesses proposed to be within the renewed VTMD. Mailing the notice begins a mandatory forty-five (45) day period in which owners may protest VTMD renewal.
July 18, 2022 PUBLIC MEETING
Allow public testimony on the renewal of the VTMD and levy of assessments. No Council action required.
August 1, 2022 FINAL PUBLIC HEARING
If written protests are received from the owners of businesses in the renewed VTMD which will pay more than fifty percent (50%) of the assessments proposed to be levied and protests are not withdrawn so as to reduce the protests to less than fifty percent (50%), no further proceedings to levy the proposed assessment against such businesses shall be taken for a period of one (1) year from the date of the finding of a majority protest by the Council.
If the Council, following the final public hearing, decides to renew the VTMD, the Council shall adopt a resolution of formation.
Fiscal Impact:
The City retains 1% of the assessments collected as an administrative fee.
Prior Council Action: The Council approved the initial formation of the District in 2017 Other: N/A
Alternatives: The Council could choose to not hold the hearing and not proceed with the approval process.
Recommended Motion (and Alternative Motions if expected):
No motion or action is required.
Environmental Assessment Status: N/A
CEQA Review: N/A
Attachments: N/A
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2023-2032
VISALIA TOURISM MARKETING DISTRICT
MANAGEMENT DISTRICT PLAN
Prepared pursuant to the Property and Business Improvement District Law of 1994, Streets and Highways Code section 36600 et seq.
May 6, 2022
288
Contents
I. OVERVIEW ........................................................................................................................................ 3 II. BACKGROUND ................................................................................................................................ 4 III. BOUNDARY ....................................................................................................................................... 5 IV. ASSESSMENT BUDGET AND SERVICES ................................................................................ 6 A. Baseline Level of Services .................................................................................................. 6 B. Annual Service Plan ............................................................................................................ 6 C. Annual Budget .................................................................................................................... 8 D. California Constitutional Compliance ................................................................................ 9 E. Assessment ........................................................................................................................ 10 F. Penalties and Interest ........................................................................................................ 11 G. Time and Manner for Collecting Assessments ................................................................. 11
V. GOVERNANCE ............................................................................................................................... 12 A. Owners’ Association ......................................................................................................... 12 B. Brown Act and California Public Records Act Compliance ............................................ 12 C. Annual Report ................................................................................................................... 12
APPENDIX 1 – LAW .................................................................................................................................... 13 APPENDIX 2 – ASSESSED BUSINESSES ............................................................................................. 24
Prepared by
(800)999-7781
www.civitasadvisors.com
289
VTMD Management District Plan 3
May 6, 2022
I. OVERVIEW
Developed by Visalia Toursim Marketing District Corporation (VTMDC) and local hoteliers , the Visalia Tourism Marketing District (VTMD) is a n assessment district proposed to provide specific benefits to payors, by funding marketing and sales promotion efforts for assessed businesses. This approach has been used successfully in other destination areas throughout the country to provide the benefit of additional room night sales directly to payors. The VTMD was created in 2018 for a five (5) year term. VTMDC and Visalia businesses now wish to renew the VTMD for a ten (10) year term.
Location: The VTMD includes all lodging businesses with twenty (20) rooms o r more located within the boundaries of the City of Visalia (City), as shown on the map in Section III.
Services: The VTMD is designed to provide specific benefits directly to payors by increasing awareness and demand for room night sales . Marketing an d sales promotions and destination development programs will increase demand for overnight tourism and market payors as tourist, meeting and event destination s, thereby increasing demand for room night sales.
Budget: The total VTMD annual assessment budget for the initial year of its ten (10) year operation is anticipated to be approximately $650,000. A similar budget is expected to apply to subsequent years, but this budget is expected to fluctuate as room sales do.
Cost: The a nnual assessment rate is two percent (2%) of gross short -term room rental revenue. Based on the benefit received, assessments will not be collected on: stays of more than thirty (30) consecutive days or stays by representatives or employees of a State or Federa l government agency in the performance of their official duties as a representative or employee of the government agency paid for by the government agency.
Collection: The City shall be responsible for collecting the assessment on a monthly basis (including any delinquencies, penalties and interest) from each assessed business located in the boundaries of the VTMD. The City shall take all reasonable efforts to collect the assessments from each assessed business.
Duration: The renewed VTMD shall have a ten (10) year life, beginning January 1, 2023 through December 31, 2032. Once per year, beginning on the anniversary of VTMD renewal, there is a thirty (30) day period in which owners paying fifty percent (50%) or more of the assessment may protest and initiate a City Council hearing on VTMD termination.
Management: The Visalia Tourism Marketing District Corporation shall continue to serve as the VTMD’s Owners’ Association. The Owners’ Association is charged with managing funds and implementing programs in accordance with this Plan, and must provide annual reports to the City Council.
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VTMD Management District Plan 4
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II. BACKGROUND
TMDs are an evolution of the traditional Business Improvement District. The first TMD was formed in West Hollywood, California in 1989. Since then, over 100 California destinations have followed suit. In recent years, other states have begun adopting the California model – Montana, South Dakota, Washington, Colorado, Texas and Louisiana have adopted TMD laws. Several other states are in the process of adopting their own legislation. The cities of Wichita, Kansas and Newark, New Jersey used an existing business improvement district law to form a TMD. And, some cities, like Portland, Oregon and Memphis, Tennessee have utilized their home rule powers to create TMDs without a state law.
California’s TMDs collectively
raise over $ 300 million
annually for local destination
marketing. With competitors
raising their budgets, and
increasing rivalry for visitor
dollars, it is important that
Visalia businesses continue to
invest in stable, lodging -
specific marketing programs.
TMDs utilize the efficiencies
of private sector operation in
the market -based promotion
of tourism districts. TMDs
allow assessed business
owners to organize their
efforts to increase demand for room night sales. Assessed business owners within the TMD pay an assessment and those funds are used to provide services that increase demand for room night sales.
In California, most TMDs are formed pursuant to the Property and Business Improvement District Law of 1994. This law allows for the creation of a benefit assessment district to raise funds within a specific geographic area. The key difference between TMDs and other benefit assessment districts is that funds raised are returned to the private non-profit corporation governing the district.
There are many benefits to TMDs:
• Funds must be spent on services and improvements that provide a specific benefit only to those who pay;
• Funds cannot be diverted to general government programs; • They are customized to fit the needs of payors in each destination; • They allow for a wide range of services;
• They are designed, created and governed by those who will pay the assessment; and • They provide a stable, long-term funding source for tourism promotion. 1 2 4 6 9 12
19 25 29 32
38 46
61 64
75 95
101
109 114
0 20
40 60
80 100
120
Number of Districts Operating in California
291
VTMD Management District Plan 5
May 6, 2022
III. BOUNDARY
The renewed VTMD shall include all lodging businesses with twenty (20) rooms or more located within the boundarie s of the City of Visalia. The boundaries shall remain conterminous with the jurisdiction’s boundaries. Therefore, future lodging businesses annexed into the jurisdiction after the renewal of the VTMD shall automatically be included within the VTMD’s boundaries when a business license is issued to that lodging business.
Lodging business means: any structure or any portion of any structure, which is occupied or intended or designed for occupancy by transients for dwelling, lodging or sleeping purposes, and includes any hotel, inn, tourist home or house, motel, studio hotel, bachelor hotel, lodging house, rooming house, apartment house, dormitory, public or private club, mobile home or house trailer at a fixed location or other similar structure or portion thereof. Lodging business does not include a hospital room, medical clinic, convalescent home or home for the aged. Also, lodging business does not include a private home, vacation cabin or similar facility which is rented by a person who is not regularly engaged in the business of renting such facilities and does so only occasionally and incidentally to his or her own use thereof.
The boundary, as shown in the map below, currently includes sixteen (16) assessed businesses. A complete listing of assessed businesses within the VTMD can be found in Appendix 2.
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IV. ASSESSMENT BUDGET AND SERVICES
A. Baseline Level of Services
The “baseline level of services” is services, provided by the Convention and Visitor’s Bureau (Bureau) and funded by the City, in the amount at a minimum of the contracted amount in the previous year.
The VTMD fun ded services will supplement, not supplant, the City’s pre -existing funding to the Bureau. In the event the City reduces Bureau funding to a level below the baseline subsequent to the renewal of the VTMD, lodging businesses may gather petitions to disestablish the VTMD.
B. Annual Service Plan
Assessment funds will be spent to provide specific benefits conferred or privileges granted directly to the payors that are not provided to those not charged, and which do not exceed the reasonable cost to the City of conferring the benefits or granting the privileges. The privileges and services provided with the VTMD funds are sales and marketing and destination development programs available only to assessed businesses.
A service plan assessment budget has been developed to deliver services that benefit the assessed businesses. A detailed annual assessment budget will be developed and approved by the VTMDC board. The table below illustrates the initial annual assessment budget allocations. The total initial assessment budget is $650,000.
Although actual revenues will fluctuate due to market conditions, the proportional allocations of the assessment budget shall remain the same. However, the City and the VTMDC board shall have the authority to adjust assessment budget allocations between the categories by no more than fifteen percent (15%) of the total assessment budget per year. A description of the proposed improvements and activities for the initial year of operation is below. The same activities are proposed for subsequent years. In the event of a legal challenge against the VTMD, any and all assessment funds may be used for the costs of defending the VTMD.
Each assessment budget category includes all costs related to providing that service. For example, the sales and marketing budget includes the cost of staff time dedicated to overseeing and implementing Sales & Marketing,
$448,500 , 69%
Administration &
Operations, $97,500 ,
15%
Destination
Development,
$65,000 , 10%
Contingency/Reserve,
$32,500 , 5%
City Fee,
$6,500 , 1%
Initial Annual Assessment Budget - $650,000
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May 6, 2022
the sales and marketing program. Staff time dedicated purely to administrative tasks is allocated to the administrative portion of the budget. The costs of an individual staff member may be allocated to multiple budget categories. The staffing levels necessary to provide t he services below will be determined by the VTMD board on an as- needed basis.
Sales and Marketing
A sales and marketing program will promote assessed businesses as tourist, meeting, and event destinations. The sales and marketing program will have a ce ntral theme of promoting Visalia as a desirable place for overnight visits. The program will have the goal of increasing demand for overnight visitation and room night sales at assessed businesses, and may include the following activities:
• Internet marke ting efforts to increase awareness and optimize internet presence to drive overnight visitation and room sales to assessed businesses; • Print ads in magazines and newspapers targeted at potential visitors to drive overnight visitation and room sales to assessed businesses;
• Television and/or radio ads targeted at potential visitors to drive overnight visitation and room sales to assessed businesses;
• Attendance of trade shows, professional industry conferences, and affiliation events to promote assessed businesses;
• Sales blitzes for assessed businesses;
• Familiarization tours of assessed businesses;
• Preparation and production of collateral promotional materials such as brochures, visitor guides, flyers and maps featuring assessed businesses;
• Attendance of professional industry conferences and affiliation events to promote assessed businesses;
• Partnership with local and state tourism organizations to target key international markets to increase overnight visitation at assessed businesses;
• Development and implementation of a public relations and communications strategy, inclusive of social media outlets and press release distribution designed to drive overnight visitation at assessed businesses;
• Development of Return on Investment (ROI) anal ysis on effectiveness of district funds to improve effectiveness and increase demand for overnight visitation at assessed businesses; • Development of a marketing plan to ensure district funds are strategically spent to mar ket assessed businesses;
• Director of Sales and General Manager meetings to plan and coordinate tourism promotion efforts for assessed businesses;
• Development and maintenance of a website designed to promote assessed businesses; • Education of hospitality staff on service and safety (related to alcohol and food) designed to create a visitor experience that will bring repeat visits to assessed businesses; • Education of assessed business management and the Owners’ Association on marketing strategies best suited to meet assessed businesses’ needs; • Implementation, operation, and/or development of a Visitor Center; and • Community organization grants to promote events and activities that target potential visitors to drive overnight visitation and room sales to assessed businesses.
Destination Development
The Destination Development projects may include:
• Comprehensive and integrated wayfinding signage system; 294
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May 6, 2022
• Contributions towards funding a transportation program connecting assessed businesses with downtown, points of interest and other attractions, to increase room night sales; • Art and cultural projects, to attract overnight visitors; • Gateway enhancements, to attract overnight visitors;
• Enhancements to environmental experiences which attract overnight visitors; • Sustainability programs that offset impacts of tourist visitation within the destination; • Development of and/or improvements to visitor points of interest, such as hiking trails and parks, that attract overnight visitors;
• Enhancements to environmental experiences, which attract overnight visitors, that expose visitors to the value of the vital ecosystems; and
• Infrastructure improvements that enhance the destination’s competitive position to attract desirable special events year-round and attract overnight visitors.
Administration and Operations
The administration and operations portion of the budget shall be utilized for administrative staffing costs, office costs, advocacy, and othe r general administrative costs such as insurance, legal, and accounting fees.
City Administration Fee
The City of Visalia shall be paid a fee equal to one percent (1%) of the amount of assessment collected to cover its costs of collection and administration.
Contingency/Reserve
The assessment budget includes a contingency line item to account for unforeseen circumstances, such as higher than anticipated costs or lower than anticipated collections . If there are contingency funds collected, they may be held in a reserve fund or utilized for other program, administration or renewal costs at the discretion of the Owners’ Association. Policies relating to contributions to the reserve fund, the target amount of the reserve fund, and expenditure of monies from the reserve fund shall be set by the Board of Directors of the Owners’ Association. Contingency/reserve fund s may be spent on District programs or administrative and renewal costs in such proportions as determined by the Owners’ Association. The reserve fund may be used for the costs of renewing the VTMD.
C. Annual Budget
The total ten (10) year improvement and service plan budget is projected at approximately $ 650,000 annually, or $7,451,521.55 through 2032. A similar budget is expected to apply to subsequent years, but this budget is expected to fluctuate as room sales do.
The table below demonstrates the maximum cost of improvements and services over the VTMD’s ten (10) year term. A three percent (3%) annual increase in the cost of improvements and services is projected to account for anticipated increases in gross short term room rental revenue as a result of VTMD efforts.
Year Marketing
& Sales
Destination
Development
Admin Contingency
/Reserve
City Admin
Fee
Total
2023 $448,500.00 $65,000.00 $97,500.00 $32,500.00 $6,500.00 $ 650,000.00 2024 $461,955.00 $66,950.00 $100,425.00 $33,475.00 $6,695.00 $ 669,500.00 2025 $475,813.65 $68,958.50 $103,437.75 $34,479.25 $6,895.85 $ 689,585.00 295
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May 6, 2022
2026 $490,088.06 $71,027.26 $106,540.88 $35,513.63 $7,102.73 $ 710,272.55 2027 $504,790.70 $73,158.07 $109,737.11 $36,579.04 $7,315.81 $ 731,580.73 2028 $519,934.42 $75,352.81 $113,029.22 $37,676.41 $7,535.28 $ 753,528.15 2029 $535,532.45 $77,613.40 $116,420.10 $38,806.70 $7,761.34 $ 776,133.99 2030 $551,598.43 $79,941.80 $119,912.70 $39,970.90 $7,994.18 $ 799,418.01 2031 $568,146.38 $82,340.06 $123,510.08 $41,170.03 $8,234.01 $ 823,400.55 2032 $585,190.77 $84,810.26 $127,215.39 $42,405.13 $8,481.03 $ 848,102.57 Total $5,141,549.87 $745,152.16 $1,117,728.23 $ 372,576.08 $ 74,515.22 $7,451,521.55
D. California Constitutional Compliance
The VTMD assessment is not a property-based assessment subject to the requirements of Proposition 218. Courts have found Proposition 218 limited the term ‘assessments’ to levies on real property. 1 Rather, the VTMD assessment is a business-based assessment, and is subject to Proposition 26.
Pursuant to Proposition 26 all levies are a tax unless they fit one of seven exceptions. Two of these exceptions apply to the VTMD, a “specific benefit” and a “specific government service.” Both require that the costs of benefits or services do not exceed the reasonable costs to the City of conferring the benefits or providing the services.
1. Specific Benefit
Proposition 26 requires that assessment funds be expe nded on, “ a specific benefit conferred or privilege granted directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of conferring the benefit or granting the privilege.”2 The services in this Pla n are designed to provide targeted benefits directly to assessed businesses, and are intended only to provide benefits and services directly to those businesses paying the assessment. These services are tailored not to serve the general public, businesses in general, or parcels of land, but rather to serve the specific businesses within the VTMD. The activities described in this Plan are specifically targeted to increase demand for room night sales for assessed businesses within the boundaries of the VTMD, and are narrowly tailored. VTMD funds will be used exclusively to provide the specific benefit of increased demand for room night sales directly to the assessees.
Assessment funds shall not be used to feature non -assessed businesses in VTMD programs, or to directly generate sales for non-assessed businesses. The activities paid for from assessment revenues are business services constituting and providing specific benefits to the assessed businesses.
The assessment imposed by this VTMD is for a specific benefit conferred directly to the payors that is not provided to those not charged. The specific benefit conferred directly to the payors is an increase in demand for room night sales. The specific benefit of an increase in demand for room night sales for assessed businesses will be provided only to businesses paying the VTMD assessment, with marketing and sales and destination development programs promoting businesses paying the VTMD assessment. The marketing and sales and destination development programs will be designed to increase room night sales at each assessed businesses. Because they are necessary to provide the marketing and sales and destination development programs that sp ecifically benefit the assessed businesses, the administration and contingency services also provide the specific benefit of increased demand for room night sales to the assessed businesses.
1 Jarvis v. the City of San Diego 72 Cal App. 4th 230
2 Cal. Const. art XIII C § 1(e)(1)
296
VTMD Management District Plan 10
May 6, 2022
Although the VTMD, in providing specific benefits to payors, may produce incidental benefits to non- paying businesses, the incidental benefit does not preclude the services from being considered a specific benefit. The legislature has found that, “A specific benefit is not excluded from classification as a ‘specific benefit’ merely because an indirect benefit to a nonpayor occurs incidentally and without cost to the payor as a consequence of providing the specific benefit to the payor.”3
2. Specific Government Service
The assessment may also be utilized to provide, “a specific government service or product provided directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of providing the service or product .”4 The legislature has recognized that marketing and promotions services like those to be provided by the VTMD are government services within the meaning of Proposition 26 5. Further, the legislature has determined that “a specific government service is not excluded from classification a s a ‘specific government service’ merely because an indirect benefit to a nonpayor occurs incidentally and without cost to the payor as a consequence of providing the specific government service to the payor.”6
3. Reasonable Cost
VTMD services will be imple mented carefully to ensure they do not exceed the reasonable cost of such services. The full amount assessed will be used to provide the services described herein. Funds will be managed by the VTMD, and reports submitted on an annual basis to the City. Only assessed businesses will be featured in marketing materials, receive sales leads generated from VTMD-funded activities, be featured in advertising campaigns, and benefit from other VTMD-funded services. Non- assessed businesses will not receive these, nor any other, VTMD-funded services and benefits.
The VTMD-funded programs are all targeted directly at and feature only assessed businesses. It is, however, possible that there will be a spill over benefit to non -assessed businesses. If non -assessed businesses receive incremental room nights, that portion of the promotion or program generating those room nights shall be paid with non-VTMD funds. VTMD funds shall only be spent to benefit the assessed businesses, and shall not be spent on that portion of any program which directly generates incidental room nights for non-assessed businesses.
E. Assessment
The annual assessment rate is two percent (2%) of gross short term room rental revenue. Based on the benefit received, assess ments will not be collected on stays of more tha n thirty (30) consecutive days or stays by representatives or employees of a State or Federal government agency in the performance of their official duties as a representative or employee of the government ag ency paid for by the government agency.
The term “gross room rental revenue” as used herein means: the consideration charged, whether or not received, for the occupancy of space in an assessed business valued in money, whether to be received in money, goo ds, labor or otherwise, including all receipts, cash, credits and property and services of any kind or nature, without any deduction therefrom whatsoever. Gross room rental revenue shall not include any federal, state or local taxes collected, including bu t not limited to transient occupancy taxes.
3 Government Code § 53758(a)
4 Cal. Const. art XIII C § 1(e)(2)
5 Government Code § 53758(b)
6 Government Code § 53758(b)
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VTMD Management District Plan 11
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The assessment is levied upon and a direct obligation of the assessed business. However, the assessed business may, at its discretion, pass the assessment on to transients. The amount of assessment, if passed on to each transient, shall be disclosed in advance and separately stated from the amount of rent charged and any other applicable taxes, and each transient shall receive a receipt for payment from the business. If the VTMD assessment is identified separately it shall be disclosed as the “VTMD Assessment.” As an alternative, the disclosure may include the amount of the VTMD assessment and the amount of the assessment imposed pursuant to the California Tourism Marketing Act, Government Code §13995 et seq. and shall be disclosed as the “Tourism Assessment.” The assessment is imposed solely upon, and is the sole obligation of the assessed business even if it is passed on to transients. The assessment shall not be considered revenue for any purpose, includin g calculation of transient occupancy taxes.
Bonds shall not be issued.
F. Penalties and Interest
The VTMD shall reimburse the City of Visalia for any costs associated with collecting unpaid assessments. If sums in excess of the delinquent VTMD assessment are sought to be recovered in the same collection action by the City, the VTMD shall bear its pro rata share of such collection costs.
Assessed businesses which are delinquent in paying the assessment shall be responsible for paying:
1. Original Delinquency: Any assessed business that fails to remit any assessment imposed within the time required shall pay a penalty of ten percent (10%) of the amount of the assessment in additional to the amount of the assessment.
2. Continued Delinquency: Any assessed business that fails to remit any delinquent remittance on or before a period of thirty (30) days following the date on which the remittance first bec ame delinquent shall pay a second delinquency penalty of ten percent (10%) of the amount of the assessment in addition to the amount of the assessment and the ten percent (10%) penalty first imposed.
3. Fraud: If the City determines that the nonpayment of any remittance due is due to fraud, a penalty of twenty-five percent (25%) of the amount of the assessment shall be added thereto in addition to the penalties stated in paragraphs 1 and 2 above.
4. Interest: In addition to the penalties imposed, any assessed business that fails to remit any assessment imposed shall pay interest at the rate of one-half of one percent (0.5%) per month or fraction thereof on the amount of the assessment, exclusive of penalties, from the date on which the remittance first became delinquent until paid.
5. Penalties Merged with Assessment: Every penalty imposed and such interest as accrues shall become a part of the assessment herein required to be paid.
G. Time and Manner for Collecting Assessments
The VTMD assessment shall be implemented beginning January 1, 2023 and will continue for ten (10) years through December 31, 2032. The City will be responsible for collecting the assessment on a monthly basis (including any delinquencies, penalties and interest) from each assessed business. The City shall take all reasonable efforts to collect the assessments from each assessed business. The City shall forward the assessments collected to the Owners’ Association.
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V. GOVERNANCE
A. Owners’ Association
The City Council, through adoption of this Management District Plan, has the right, pursuant to Streets and Highways Code §36651, to identify the body that shall implement the proposed program, which shall be the Owners’ Association of the VTMD as defined in Streets and Highways Code §36612. The City Council has determined that the Visalia Tourism Marketing District Corporation (VTMDC) shall continue to serve as the Owners’ Association for the VTMD. The entirety of the VTMDC Board of Directors shall be representatives of businesses paying the VTMD assessment.
B. Brown Act and California Public Records Act Compliance An Owners’ Association is a private entity and may not be considered a public entity for any purpose, nor may its board members or staff be considered to be public officials for any purpose. The Owners’ Association is, however, subject to government regulations relating to transparency, namely the Ralph M. Brown Act and the California Public Records Act. These regulations are designed to promote public accountability. The Owners’ Association acts as a legislative body under the Ralph M. Brown Act (Government Code §54 950 et seq.). Thus, meetings of the VTMDC board and certain committees must be held in compliance with the public notice and other requirements of the Brown Act. The Owner s’ Association is also subject to the record keeping and disclosure requirements of the California Public Records Act. Accordingly, the Owners’ Association shall publicly report any action taken and the vote or abstention on that action of each member present for the action.
C. Annual Report
The VTMD shall present an annual report at th e end of each year of operation to the City Council pursuant to Streets and Highways Code §36650 (see Appendix 1). The annual report shall include:
• Any proposed changes in the boundaries of the improvement district or in any benefit zones or classification of businesses within the district.
• The improvements and activities to be provided for that fiscal year. • An estimate of the cost of providing the improvements and the activities for that fiscal year. • The method and basis of levying the assessment in suffi cient detail to allow each business owner to estimate the amount of the assessment to be levied against his or her business for that fiscal year.
• The estimated amount of any surplus or deficit revenues to be carried over from a previous fiscal year.
• The estimated amount of any contributions to be made from sources other than assessments levied pursuant to this part.
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APPENDIX 1 – LAW
*** THIS DOCUMENT IS CURRENT THROUGH THE 2021 SUPPLEMENT *** (ALL 2020 LEGISLATION)
STREETS AND HIGHWAYS CODE
DIVISION 18. PARKING
PART 7. PROPERTY AND BUSINESS IMPROVEMENT DISTRICT LAW OF 1994
CHAPTER 1. General Provisions
ARTICLE 1. Declarations
36600. Citation of part
This part shall be known and may be cited as the “Property and Business Improvement District Law of 1994.”
36601. Legislative findings and declarations; Legislative guidance
The Legislature finds and declares all of the following:
(a) Businesses located and operating within business districts in some of this state’s communities are economically disadvantaged, are underutilized, and are unable to attract customers due to inadequate facilities, services, and activities in the business districts. (b) It is in the public interest to promote the economic revitalization and physical maintenance of business districts in order to create jobs, attract new businesses, and prevent the erosion of the business districts. (c) It is of particular local benefit to allow business districts to fund business related improvements, maintenance, and activities through the levy of assessments upon the businesses or real property that receive benefits from those improvements.
(d) Assessments levied for the purpose of conferring special benefit upon the real property or a specific benefit upon the businesses in a business district are not taxes for the general benefit of a city, even if property, businesses, or persons not assessed receive incidental or collateral effects that benefit them. (e) Property and business improvement districts formed throughout this state have conferred special benefits upon properties and businesses within their districts and have made those properties and businesses more useful by providing the following benefits:
(1) Crime reduction. A study by the Rand Corporation has confirmed a 12-percent reduction in the incidence of robbery and an 8-percent reduction in the total incidence of violent crimes within the 30 districts studied.
(2) Job creation.
(3) Business attraction.
(4) Business retention.
(5) Economic growth.
(6) New investments.
(f) With the dissolution of redevelopment agencies throughout the state, property and business improvement districts have become even more important tools with which communities can combat blight, promote economic opportunities, and create a clean and safe environment. (g) Since the enactment of this act, the people of California have adopted Proposition 218, which added Article XIII D to the Constitution in order to place certain requirements and restrictions on the formation of, and activities, expenditures, and assessments by property-based districts. Article XIII D of the Constitution provides that property-based districts may only levy assessments for special benefits. (h) The act amending this section is intended to provide the Legislature’s guidance with regard to this act, its interaction with the provisions of Article XIII D of the Constitution, and the determination of special benefits in property-based districts.
(1) The lack of legislative guidance has resulted in uncertainty and inconsistent application of this act, which discourages the use of assessments to fund needed improvements, maintenance, and activities in property-based districts, contributing to blight and other underutilization of property. (2) Activities undertaken for the purpose of conferring special benefits upon property to be assessed inherently produce incidental or collateral effects that benefit property or persons not assessed.
Therefore, for special benefits to exist as a separate and distinct category from general benefits, the 300
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incidental or collateral effects of those special benefits are inherently part of those special benefits.
The mere fact that special benefits produce incidental or collateral effects that benefit property or persons not assessed does not convert any portion of those special benefits or their incidental or collateral effects into general benefits.
(3) It is of the utmost importance that property-based districts created under this act have clarity regarding restrictions on assessments they may levy and the proper determination of special benefits.
Legislative clarity with regard to this act will provide districts with clear instructions and courts with legislative intent regarding restrictions on property-based assessments, and the manner in which special benefits should be determined.
36602. Purpose of part
The purpose of this part is to supplement previously enacted provisions of law that authorize cities to levy assessments within property and business improvement districts, to ensure that those assessments conform to all constitutional requirements and are determined and assessed in accordance with the guidance set forth in this act. This part does not affect or limit any other provisions of law authorizing or providing for the furnishing of improvements or activities or the raising of revenue for these purposes.
36603. Preemption of authority or charter city to adopt ordinances levying assessments
Nothing in this part is intended to preempt the authority of a charter city to adopt ordinances providing for a different method of levying assessments for similar or additional purposes from those set forth in this part. A property and business improvement district created pursuant to this part is expressly exempt from the provisions of the Special Assessment Investigation, Limitation and Majority Protest Act of 1931 (Division 4 (commencing with Section 2800)).
36603.5. Part prevails over conflicting provisions
Any provision of this part that conflicts with any other provision of law shall prevail over the other provision of law, as to districts created under this part.
36604. Severability
This part is intended to be construed liberally and, if any provision is held invalid, the remaining provisions shall remain in full force and effect. Assessments levied under this part are not special taxes.
ARTICLE 2. Definitions
36606. “Activities”
“Activities” means, but is not limited to, all of the following that benefit businesses or real property i n the district:
(a) Promotion of public events.
(b) Furnishing of music in any public place.
(c) Promotion of tourism within the district.
(d) Marketing and economic development, including retail retention and recruitment. (e) Providing security, sanitatio n, graffiti removal, street and sidewalk cleaning, and other municipal services supplemental to those normally provided by the municipality. (f) Other services provided for the purpose of conferring special benefit upon assessed real property or specific benefits upon assessed businesses located in the district.
36606.5. “Assessment”
“Assessment” means a levy for the purpose o f acquiring, constructing, installing, or maintaining improvements and providing activities that will provide certain benefits to properties or businesses located within a property and business improvement district.
36607. “Business”
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“Business” means all types of businesses and includes financial institutions and professions.
36608. “City”
“City” means a city, county, city and county, or an agency or entity created pursuant to Article 1 (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of the Government Code, the public member agencies of which includes only cities, counties, or a city and county, or the State of California.
36609. “City council”
“City council” means the city council of a city or the board of supervisors of a county, or the agency, commission, or board created pursuant to a joint powers agreement and which is a city within the meaning of this part.
36609.4. “Clerk”
“Clerk” means the clerk of the legislative body.
36609.5. “General benefit”
“General benefit” means, for purposes of a property-based district, any benefit that is not a “special benefit” as defined in Section 36615.5.
36610. “Improvement”
“Improvement” means the acquisition, construction, installa tion, or maintenance of any tangible property with an estimated useful life of five years or more including, but not limited to, the following:
(a) Parking facilities.
(b) Benches, booths, kiosks, display cases, pedestrian shelters and signs. (c) Trash receptacles and public restrooms.
(d) Lighting and heating facilities.
(e) Decorations.
(f) Parks.
(g) Fountains.
(h) Planting areas.
(i) Closing, opening, widening, or narrowing of existing streets. (j) Facilities or equipment, or both, to enhance security of persons and property within the district. (k) Ramps, sidewalks, plazas, and pedestrian malls.
(l) Rehabilitation or removal of existing structures.
36611. “Management district plan”; “Plan”
“Management district plan” or “plan” means a proposal as defined in Section 36622.
36612. “Owners’ association”
“Owners’ association” means a private nonprofit entity that is under contract with a city to administer or implement improvements, maintenance, and activities specified in the management district plan. An owners’ association may be an existing nonprofit entity or a newly formed nonprofit entity. An owners’ association is a private entity and may not be considered a public entity for any purpose, nor may its board members or staff be consider ed to be public officials for any purpose. Notwithstanding this section, an owners’ association shall comply with the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5 of the Government Code), at all times when matters within the subject matter of the district are heard, discussed, or deliberated, and with the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code), for all records relating to activities of the district. 36614. “Property”
“Property” means real property situated within a district.
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36614.5. “Property and business improvement district”; “District”
“Property and business improvement district,” or “district,” means a property and business improvement district established pursuant to this part.
36614.6. “Property-based assessment”
“Property-based assessment” means any assessment made pursuant to this part upon real property.
36614.7. “Property-based district”
“Property-based district” means any district in which a city levies a property-based assessment.
36615. “Property owner”; “Business owner”; “Owner”
“Property owner” means any person shown as the owner of land on the last equalized assessment roll or otherwise known to be the owner of land by the city council. “Business owner” means any person recognized by the city as the owner of the business. “Owner” means either a business owner or a property owner. The city council has no obligation to obtain other information as to the ownership of land or businesses, and its determination of ownership shall be final and conclusive for the purposes of this part. Wherever this part requires the signature of the property owner, the signature of the authorized agent of the property owner shall be sufficient. Wherever this part requires the signature of the business owner, the signature of the authorized agent of the business owner shall be sufficient.
36615.5. “Special benefit”
“Special benefit” means, for purposes of a property -based district, a particular and distinct benefit over and above general bene fits conferred on real property located in a district or to the public at large. Special benefit includes incidental or collateral effects that arise from the improvements, maintenance, or activities of property-based districts even if those incidental or collateral effects benefit property or persons not assessed. Special benefit excludes general enhancement of property value.
36616. “Tenant”
“Tenant” means an occupant pursuant to a lease of commercial space or a dwelling unit, other than an owner.
ARTICLE 3. Prior Law
36617. Alternate method of financing certain improvements and activities; Effect on other provisions
This part provides an alternative method of financing certain improvements and activities. The provisions of this part shall not affect or limit any other provisions of law authorizing or providing for the furnishing of improvements or activities or the raising of revenue for these purposes. Every improvement area established pursuant to the Parking and Business Improvement Area Law of 1989 (Part 6 (commencing with Section 36500) of this division) is valid and effective and is unaffected by this part.
CHAPTER 2. Establishment
36620. Establishment of property and business improvement district
A property and business improvement district may be established as provided in this chapter.
36620.5. Requirement of consent of city council
A county may not form a district within the te rritorial jurisdiction of a city without the consent of the city council of that city. A city may not form a district within the unincorporated territory of a county without the consent of the board 303
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of supervisors of that county. A city may not form a dist rict within the territorial jurisdiction of another city without the consent of the city council of the other city.
36621. Initiation of proceedings; Petition of property or business owners in proposed district
(a) Upon the submission of a writte n petition, signed by the property or business owners in the proposed district who will pay more than 50 percent of the assessments proposed to be levied, the city council may initiate proceedings to form a district by the adoption of a resolution expressing its intention to form a district.
The amount of assessment attributable to property or a business owned by the same property or business owner that is in excess of 40 percent of the amount of all assessments proposed to be levied, shall not be included in determining whether the petition is signed by property or business owners who will pay more than 50 percent of the total amount of assessments proposed to be levied. (b) The petition of property or business owners required under subdivision (a) shall in clude a summary of the management district plan. That summary shall include all of the following:
(1) A map showing the boundaries of the district.
(2) Information specifying where the complete management district plan can be obtained. (3) Information spec ifying that the complete management district plan shall be furnished upon request.
(c) The resolution of intention described in subdivision (a) shall contain all of the following:
(1) A brief description of the proposed improvements, maintenance, and activ ities, the amount of the proposed assessment, a statement as to whether the assessment will be levied on property or businesses within the district, a statement as to whether bonds will be issued, and a description of the exterior boundaries of the proposed district, which may be made by reference to any plan or map that is on file with the clerk. The descriptions and statements do not need to be detailed and shall be sufficient if they enable an owner to generally identify the nature and extent of the impr ovements, maintenance, and activities, and the location and extent of the proposed district. (2) A time and place for a public hearing on the establishment of the property and business improvement district and the levy of assessments, which shall be consis tent with the requirements of Section 36623.
36622. Contents of management district plan
The management district plan shall include, but is not limited to, all of the following:
(a) If the assessment will be levied on property, a map of the district in sufficient detail to locate each parcel of property and, if businesses are to be assessed, each business within the district. If t he assessment will be levied on businesses, a map that identifies the district boundaries in sufficient detail to allow a business owner to reasonably determine whether a business is located within the district boundaries. If the assessment will be levied on property and businesses, a map of the district in sufficient detail to locate each parcel of property and to allow a business owner to reasonably determine whether a business is located within the district boundaries.
(b) The name of the proposed district.
(c) A description of the boundaries of the district, including the boundaries of benefit zones, proposed for establishment or extension in a manner sufficient to identify the affected property and businesses included, which may be made by reference to any plan or map that is on file with the clerk. The boundaries of a proposed property assessment district shall not overlap with the boundaries of another existing property assessment district created pursuant to this part. This part does not prohibit the boundaries of a district created pursuant to this part to overlap with other assessment districts established pursuant to other provisions of law, including, but not limited to, the Parking and Business Improvement Area Law of 1989 (Part 6 (commencing with Section 36500)). This part does not prohibit the boundaries of a business assessment district created pursuant to this part to overlap with another business assessment district created pursuant to this part. This part does not prohibit the boundaries of a business assessment district created pursuant to this part to overlap with a property assessment district created pursuant to this part. (d) The improvements, maintenance, and activities proposed for each year of operation of the district and the maximum cost thereof. If the improvements, maintenance, and activities proposed for each year of operation are the same, a description of the first year’s proposed improvements, maintenance, and activities and a statement that the same improvements, maintenance, a nd activities are proposed for subsequent years shall satisfy the requirements of this subdivision.
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(e) The total annual amount proposed to be expended for improvements, maintenance, or activities, and debt service in each year of operation of the district. If the assessment is levied on businesses, this amount may be estimated based upon the assessment rate. If the total annual amount proposed to be expended in each year of operation of the district is not significantly different, the amount propos ed to be expended in the initial year and a statement that a similar amount applies to subsequent years shall satisfy the requirements of this subdivision.
(f) The proposed source or sources of financing, including the proposed method and basis of levying the assessment in sufficient detail to allow each property or business owner to calculate the amount of the assessment to be levied against his or her property or business. The plan also shall state whether bonds will be issued to finance improvements.
(g) The time and manner of collecting the assessments.
(h) The specific number of years in which assessments will be levied. In a new district, the maximum number of years shall be five. Upon renewal, a district shall have a term not to exceed 10 years. Notwi thstanding these limitations, a district created pursuant to this part to finance capital improvements with bonds may levy assessments until the maximum maturity of the bonds. The management district plan may set forth specific increases in assessments for each year of operation of the district. (i) The proposed time for implementation and completion of the management district plan. (j) Any proposed rules and regulations to be applicable to the district. (k) (1) A list of the properties or businesses to be assessed, including the assessor’s parcel numbers for properties to be assessed, and a statement of the method or methods by which the expenses of a district will be imposed upon benefited real property or businesses, in proportion to the benefit received by the property or business, to defray the cost thereof. (2) In a property -based district, the proportionate special benefit derived by each identified parcel shall be determined exclusively in relationship to the entirety of the capital cost of a public improvement, the maintenance and operation expenses of a public improvement, or the cost of the activities. An assessment shall not be imposed on any parcel that exceeds the reasonable cost of the proportional special benefit conferred on that parcel. Only special benefits are assessable, and a property-based district shall separate the general benefits, if any, from the special benefits conferred on a parcel. Parcels within a property -based district that are owned or used by any city, public agency, the State of California, or the United States shall not be exempt from assessment unless the governmental entity can demonstrate by clear and convincing evidence that those publicly owned parcels in fact receive no special benefit. The value of any incidental, secondary, or collateral effects that arise from the improvements, maintenance, or activities of a property -based district and that benefit property or persons not assessed shall not be deducted from the entirety of the cost of any special benefit or affect the proportionate special benefit derived by each identified parcel. (l) In a property -based district, the total amount of all special benefits to be conferred upon the properties located within the property-based district.
(m) In a property-based district, the total amount of general benefits, if any. (n) In a property -based district, a detailed engineer’s report prepared by a registered professional engineer certified by the State of California supporting all assessments contemplated by the management district plan. (o) Any other item or matter required to be incorporated therein by the city council.
36623. Procedure to levy assessment
(a) If a city council proposes to levy a new or increased property assessment, the notice and protest and hearing procedure shall comply with Section 53753 of the Government Code. (b) If a city council proposes to levy a new or increased business a ssessment, the notice and protest and hearing procedure shall comply with Section 54954.6 of the Government Code, except that notice shall be mailed to the owners of the businesses proposed to be assessed. A protest may be made orally or in writing by any interested person. Every written protest shall be filed with the clerk at or before the time fixed for the public hearing. The city council may waive any irregularity in the form or content of any written protest. A written protest may be withdrawn in writ ing at any time before the conclusion of the public hearing. Each written protest shall contain a description of the business in which the person subscribing the protest is interested sufficient to identify the business and, if a person subscribing is not shown on the official records of the city as the owner of the business, the protest shall contain or be accompanied by written evidence that the person subscribing is the owner of the business or the authorized representative. A written protest that does not comply with this section shall not be counted in determining a majority protest. If written protests are received from the owners or authorized representatives of businesses in the proposed district that will pay 305
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50 percent or more of the assessments pr oposed to be levied and protests are not withdrawn so as to reduce the protests to less than 50 percent, no further proceedings to levy the proposed assessment against such businesses, as contained in the resolution of intention, shall be taken for a perio d of one year from the date of the finding of a majority protest by the city council. (c) If a city council proposes to conduct a single proceeding to levy both a new or increased property assessment and a new or increased business assessment, the notice and protest and hearing procedure for the property assessment shall comply with subdivision (a), and the notice and protest and hearing procedure for the business assessment shall comply with subdivision (b). If a majority protest is received from either th e property or business owners, that respective portion of the assessment shall not be levied. The remaining portion of the assessment may be levied unless the improvement or other special benefit was proposed to be funded by assessing both property and business owners.
36624. Changes to proposed assessments
At the conclusion of the public hearing to establish the district, the city council may ado pt, revise, change, reduce, or modify the proposed assessment or the type or types of improvements, maintenance, and activities to be funded with the revenues from the assessments. Proposed assessments may only be revised by reducing any or all of them. At the public hearing, the city council may only make changes in, to, or from the boundaries of the proposed property and business improvement district that will exclude territory that will not benefit from the proposed improvements, maintenance, and activities. Any modifications, revisions, reductions, or changes to the proposed assessment district shall be reflected in the notice and map recorded pursuant to Section 36627.
36625. Resolution of formation
(a) If the city council, following the public hearing, decides to establish a proposed property and business improvement district, the city council shall adopt a resolution of formation that shall include, but is not limited to, all of the following:
(1) A brief description of the proposed improvements, maintenance, and activities, the amount of the pro posed assessment, a statement as to whether the assessment will be levied on property, businesses, or both within the district, a statement on whether bonds will be issued, and a description of the exterior boundaries of the proposed district, which may be made by reference to any plan or map that is on file with the clerk. The descriptions and statements need not be detailed and shall be sufficient if they enable an owner to generally identify the nature and extent of the improvements, maintenance, and activities and the location and extent of the proposed district. (2) The number, date of adoption, and title of the resolution of intention. (3) The time and place where the public hearing was held concerning the establishment of the district.
(4) A determination regarding any protests received. The city shall not establish the district or levy assessments if a majority protest was received.
(5) A statement that the properties, businesses, or properties and businesses in the district established by the resolution shall be subject to any amendments to this part. (6) A statement that the improvements, maintenance, and activities to be conferred on businesses and properties in the district will be funded by the levy of the assessments. The revenue from the levy of assessments within a district shall not be used to provide improvements, maintenance, or activities outside the district or for any purpose other than the purposes specified in the resolution of intention, as modified by the city council at the hearing co ncerning establishment of the district.
Notwithstanding the foregoing, improvements and activities that must be provided outside the district boundaries to create a special or specific benefit to the assessed parcels or businesses may be provided, but shall be limited to marketing or signage pointing to the district. (7) A finding that the property or businesses within the area of the property and business improvement district will be benefited by the improvements, maintenance, and activities funded by the proposed assessments, and, for a property -based district, that property within the district will receive a special benefit.
(8) In a property -based district, the total amount of all special benefits to be conferred on the properties within the property-based district.
(b) The adoption of the resolution of formation and, if required, recordation of the notice and map pursuant to Section 36627 shall constitute the levy of an assessment in each of the fiscal years referred to in the management district plan.
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36627. Notice and assessment diagram
Following adoption of the resolution establishing district assessments on properties pursuant to Section 36625, the clerk shall record a notice and an assessment diagram pursuant to Section 3114. No other provision of Division 4.5 (commencing with Section 3100) applies to an assessment district created pursuant to this part.
36628. Establishment of separate benefit zones within district; Categories of businesses
The city council may establish one or more separate benefit zones within the district based upon the degree of benefit derived from the improvements or activities to be provided within the benefit zone and may impose a different assessment within each benefit zone. If the assessment is to be levie d on businesses, the city council may also define categories of businesses based upon the degree of benefit that each will derive from the improvements or activities to be provided within the district and may impose a different assessment or rate of assess ment on each category of business, or on each category of business within each zone.
36628.5. Assessments on businesses or property owners
The city council may levy assessments on businesses or on property owners, or a combination of the two, pursuant to this part. The city council shall structure the assessments in whatever manner it determines corresponds with the distribution of benefits from the proposed improvements, maintenance, and activities, provided that any property - based assessment conforms with the requirements set forth in paragraph (2) of subdivision (k) of Section 36622.
36629. Provisions and procedures applicable to benefit zones and business categories
All provisions of this part applicable to the establishment, modification, or disestablishment of a property and business improvement district apply to the establishment, modification, or disestablishment of benefit zones or categories of business. The city council shall, to establish, modify, or disestablish a benefit zone or category of business, follow the procedure to establish, modify, or disestablish a property and business improvement district.
36630. Expiration of district; Creation of new district
If a property and business improvement district expires due to the time limit set pursuant to subdivision (h) of Section 36622, a new management district plan may be created and the district may be renewed pursuant to this part.
CHAPTER 3. Assessments
36631. Time and manner of collection of assessments; Delinquent payments
The collection of the assessments levied pursuant to this part shall be made at the time and in the manner set forth by the city council in the resolution levying the assessment. Assessments levied on real property may be collected at the same time and in the same manner as for the ad valorem property tax, and may provide for the same lien priority and penalties for delinquent payment. All delinquent payments for assessments levied pursuant to this part may be charged interest and penalties.
36632. Assessments to be based on estimated benefit; Classification of real property and businesses; Exclusion of residential and agricultural property
(a) The assessments levied on real property pursuant to this part shall be levied on the basis of the estimated benefit to the real property within the property and business improvement district. The city council may classify properties for purposes o f determining the benefit to property of the improvements and activities provided pursuant to this part.
(b) Assessments levied on businesses pursuant to this part shall be levied on the basis of the estimated benefit to the businesses within the property and business improvement district. The city council may classify businesses for purposes of determining the benefit to the businesses of the improvements and activities provided pursuant to this part.
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(c) Properties zoned solely for residential use, or tha t are zoned for agricultural use, are conclusively presumed not to benefit from the improvements and service funded through these assessments, and shall not be subject to any assessment pursuant to this part.
36633. Time for contesting validity of assessment
The validity of an assessment levied under this part shall not be contested in an action or proceeding unless the action or proceeding is commenced within 30 days after the resolution levying the assessment is adopted pursuant to Section 36625. An appeal from a final judgment in an action or proceeding shall be perfected within 30 days after the entry of judgment.
36634. Service contracts authorized to establish levels of city services
The city council may execute baseline service contracts that would establish levels of city services that would continue after a property and business improvement district has been formed.
36635. Request to modify management district plan
The owners’ association may, at any time, request that the city council modify the management district plan. Any modification of the management district plan shall be made pursuant to this chapter.
36636. Modification of plan by resolution after public hearing; Adoption of resolution of intention
(a) Upon the written request of the owners’ association, the city council may modify the management district plan after conducting one public hearing on the proposed modifications. The city council may modify the improvements and activities to be funded with the revenue derived from the levy of the assessments by adopting a resolution determining to make the modifications after holding a public hearing on the proposed modifications. If the modification includes the levy of a new or increased assessment, the city council shall comply with Sect ion 36623. Notice of all other public hearings pursuant to this section shall comply with both of the following:
(1) The resolution of intention shall be published in a newspaper of general circulation in the city once at least seven days before the public hearing.
(2) A complete copy of the resolution of intention shall be mailed by first class mail, at least 10 days before the public hearing, to each business owner or property owner affected by the proposed modification.
(b) The city council shall adopt a resolution of intention which states the proposed modification prior to the public hearing required by this section. The public hearing shall be held not more than 90 days after the adoption of the resolution of intention.
36637. Reflection of modification in notices recorded and maps
Any subsequent modification of the resolution shall be reflected in subsequent notices and maps recorded pursuant to Division 4.5 (commencing with Section 3100), in a manner consistent with the provisions of Section 36627.
CHAPTER 3.5. Financing
36640. Bonds authorized; Procedure; Restriction on reduction or termination of assessments
(a)The city council may, by resolution, determine and declare that bonds shall be issued to finance the estimated cost of some or all of the proposed improvements described in the resolution of formation adopted pursuant to Section 36625, if the resolution of formation adopted pursuant to that section provides for the issuance of bonds, under the Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500)) or in conjunction with Marks -Roos Local Bond Pooling Act of 1985 (Article 4 (commencing w ith Section 6584) of Chapter 5 of Division 7 of Title 1 of the Government Code). Either act, as the case may be, shall govern the proceedings relating to the issuance of bonds, although proceedings under the Bond Act of 1915 may be modified by the city council as necessary to accommodate assessments levied upon business pursuant to this part.
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(b) The resolution adopted pursuant to subdivision (a) shall generally describe the proposed improvements specified in the resolution of formation adopted pursuant to Section 36625, set forth the estimated cost of those improvements, specify the number of annual installments and the fiscal years during which they are to be collected. The amount of debt service to retire the bonds shall not exceed the amount of revenue estimated to be raised from assessments over 30 years.
(c) Notwithstanding any other provision of this part, assessments levied to pay the principal and interest on any bond issued pursuant to this section shall not be reduced or terminated if doing so woul d interfere with the timely retirement of the debt.
CHAPTER 4. Governance
36650. Report by owners’ association; Approval or modification by city council
(a) The owners’ association shall cause to be prepared a report for each fiscal year, except the first year, for which assessments are to be levied and collected to pay the costs of the improvements, maintenance, and activities described in the report. The owners’ association’s first report shall be due after the first year of operation of the district. The report may propose changes, including, but not limited to, the boundaries of the property and business improvement district o r any benefit zones within the district, the basis and method of levying the assessments, and any changes in the classification of property, including any categories of business, if a classification is used.
(b) The report shall be filed with the clerk and shall refer to the property and business improvement district by name, specify the fiscal year to which the report applies, and, with respect to that fiscal year, shall contain all of the following information:
(1) Any proposed changes in the boundaries of the property and business improvement district or in any benefit zones or classification of property or businesses within the district. (2) The improvements, maintenance, and activities to be provided for that fiscal year. (3) An estimate of the cost of providing the improvements, maintenance, and activities for that fiscal year.
(4) The method and basis of levying the assessment in sufficient detail to allow each real property or business owner, as appropriate, to estimate the amount of the assessment to be levied against his or her property or business for that fiscal year.
(5) The estimated amount of any surplus or deficit revenues to be carried over from a previous fiscal year.
(6) The estimated amount of any contributions to be made from sources other than assessments levied pursuant to this part.
(c) The city council may approve the report as filed by the owners’ association or may modify any particular contained in the report and approve it as modified. Any modification shall be made pursuant to Sections 36635 and 36636.
The city council shall not approve a change in the basis and method of levying assessments that would impair an authorized or executed contract to be paid from the revenues derived from the levy of assessments, including any commitment to pay principal and interest on any bonds issued on behalf of the district.
36651. Designation of owners’ association to provide improvements, maintenance, and activities
The management district plan may, b ut is not required to, state that an owners’ association will provide the improvements, maintenance, and activities described in the management district plan. If the management district plan designates an owners’ association, the city shall contract with the designated nonprofit corporation to provide services.
CHAPTER 5. Renewal
36660. Renewal of district; Transfer or refund of remaining revenues; District term limit
(a) Any district previously established whose term has expired, or will expire, may be renewed by following the procedures for establishment as provided in this chapter. (b) Upon renewal, any remaining revenues deriv ed from the levy of assessments, or any revenues derived from the sale of assets acquired with the revenues, shall be transferred to the renewed district. If the renewed district includes additional parcels or businesses not included in the prior district, the remaining revenues 309
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shall be spent to benefit only the parcels or businesses in the prior district. If the renewed district does not include parcels or businesses included in the prior district, the remaining revenues attributable to these parcels shall be refunded to the owners of these parcels or businesses. (c) Upon renewal, a district shall have a term not to exceed 10 years, or, if the district is authorized to issue bonds, until the maximum maturity of those bonds. There is no requirement that the boundaries, assessments, improvements, or activities of a renewed district be the same as the original or prior district.
CHAPTER 6. Disestablishment
36670. Circumstances permitting disestablishment of district; Procedure
(a) Any district established or extended pursuant to the provisions of this part, where there is no indebtedness, outstanding and unpaid, incurred to accomplish any of the purposes of the district, may be disestablished by resolution by the city council in either of the following circumstances:
(1) If the city council finds there has been misappropriation of funds, malfeasance, or a violation of law in connection with the management of the district, it shall notice a hearing on disestablishment. (2) During the operation of the district, there shall be a 30 -day period each year in which assessees may request disestablishment of the district. The first such period shall begin one year after the date of establishment of the district and shall continue for 30 days. The next such 30 -day period shall begin two years after the date of the establishment of the district. Each successive year of operation of the district shall have such a 30-day period. Upon the written petition of the owners or authorized representatives of real property or the owners or authorized representatives of businesses in the district who pay 50 percent or more of the assessments levied, the city council shall pass a resolution of intention to disestablish the district. The city council shall notice a hearing on disestablishment. (b) The city council shall adopt a resolution of intention to disestablish the district prior to the public hearing required by this section. The resolution shall state the reason for the disestablishment, shall state the time and place of the public hearing, and shall contain a proposal to dispose of any assets acquired with the revenues of the assessments levied w ithin the property and business improvement district. The notice of the hearing on disestablishment required by this section shall be given by mail to the property owner of each parcel or to the owner of each business subject to assessment in the district, as appropriate. The city shall conduct the public hearing not less than 30 days after mailing the notice to the property or business owners. The public hearing shall be held not more than 60 days after the adoption of the resolution of intention.
36671. Refund of remaining revenues upon disestablishment or expiration without renewal of district; Calculation of refund; Use of outstanding revenue collected after disestablishment of district
(a) Upon the disestablishment or expiration without renewal of a district, any remaining revenues, after all outstanding debts are paid, derived from the levy of assessments, or derived from the sale of assets acquired with the revenues, or from bond reserve or construction funds, shall be refunded to the owners of the property or businesses then located and operating within the district in which assessments were levied by applying the same method and basis that was used to calculate the assessments levied in the fiscal year in which the district is disestablished or expires. All outstanding assessment revenue collected after disestablishment shall be spent on improvements and activities specified in the management district plan. (b) If the disestablishment occurs before an assessment is levied for the fiscal year, the method and basis that was used to calculate the assessments levied in the immediate prior fiscal year shall be used to calculate the amount of any refund.
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APPENDIX 2 – ASSESSED BUSINESSES
Business Name Business Address
America's Best Value Inn 623 W. Main St. Visalia, CA 93291 Best Western 9300 W. Airport Dr. Visalia, CA 93277
Comfort Suites Downtown 210 E. Acequia Ave. Visalia, CA 93291 Fairfield by Marriott 140 S. Akers St. Visalia, CA 93291 Hampton Inn & Suites 4747 W. Noble Ave. Visalia, CA 93277 Hilton Garden Inn (Opening in 2022) Visalia, CA
Holiday Inn Express 5625 W. Cypress Ave, Visalia CA 93277 La Quinta Inn & Suites 5438 W. Cypress Visalia, CA 93277 Lamp Liter Inn 3300 W. Mineral King Visalia, CA 93291
Majestic Inn (formerly the Marco Polo) 4545 West Noble, Visalia, CA 93277 Motel 6 4645 W. Noble Ave Visalia, CA 93277
Residence Inn 205 N. Plaza Drive, Visalia, CA 93291
Super 8 Visalia 4801 West Noble Ave, Visalia, CA 93277
The Darling Hotel 210 N. Court Street, Visalia, CA 93291 Visalia Marriott at the Convention Center 300 S. Court St. Visalia, CA 93291 Wyndham Visalia 9000 W. Airport Dr. Visalia, CA 93277
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Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 22-0270 Agenda Date: 7/18/2022 Agenda #: 2.
Agenda Item Wording:
Authorize the City Manager to execute agreements for the award of RFP 21-22-28 to RH Community Builders (RHCB) to convert the Majestic Motel at 4545 W. Noble Avenue for the Development of a 42 -unit Permanent Affordable Rental Housing complex for qualifying populations; and appropriate $1,800,000 in HOME Investment Partnership American Rescue Plan Program (HOME-ARP) and $900,000 in Successor Agency Housing (SAH) funds.
Deadline for Action: 7/18/2022
Submitting Department: Finance and Technology Services
Contact Name and Phone Number:
Margie Perez, Housing Specialist, (559) 713-4460, [email protected] Melody Murch, Assistant Finance Director, (559) 713-4379, [email protected] Renee Nagel, Finance Director, (559) 713-4379, [email protected] Department Recommendation:
The City of Visalia evaluation committee, which consisted of the two Council appointed representatives, Council Members Collins and Wynn, and two housing staff members reviewed and scored all proposals. The Committee recommends that the City Council award the funding to RH Community Builders to convert the Majestic in to a 42-unit permanent affordable rental housing for qualifying populations which would require the following actions:
1) Award RFP-21-22-28 to RH Community Builders (RHCB); and 2) Appropriate HOME Investment Partnership American Rescue Plan Program (HOME-ARP) funds, in the amount of $1,800,000, with HOME-ARP provisions for a period of 20 years with the City of Visalia and RHCB, toward the development of permanent affordable rental housing for qualifying populations; and
3) Appropriate Successor Agency Housing (SAH) funds, in the amount of $900,000, with affordable housing provisions for a period of 55 years, toward the development of permanent affordable rental housing for qualifying populations; and 4) Authorize the City Manager and staff to negotiate, make minor changes, and execute the necessary contracts and loan agreements.
Background Discussion:
On December 20, 2021, Council authorized the release of a Request for Proposals (RFP) seeking a qualified non-profit organization for the development of permanent affordable rental housing for qualifying populations within the City of Visalia with the use of $1,800,000 in HOME Investment Partnership American Rescue Plan Program (HOME-ARP) and $900,000 in Successor Agency Housing (SAH) funds for a total of $2,700,000. The RFP was released on February 22, 2022 and remained open through April 22, 2022. The city received three proposals in response to the solicitation of RFP-21-22-28, development of permanent affordable rental housing for qualifying Visalia City Council Printed on 7/15/2022Page 1 of 7
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populations. The proposals were from:
· RH Community Builders (RHCB)
· Self-Help Enterprises (SHE)
· Christian Church Homes (CCH)
The City of Visalia evaluation committee, which consisted of two housing staff and two Council Members reviewed and scored all proposals to select the most optimal proposal to award. Based on overall scores, the evaluation committee recommendation is to award RFP-21-22-28, for the development of permanent affordable rental housing for qualifying populations, to RHCB. This agenda item is requesting authorization to execute the necessary agreements, as required by the City Purchasing Policy.
Project Funding:
The City has identified two sources of funding for the Development of Permanent Rental Affordable Housing for qualifying populations. The funding sources include HOME-ARP and SAH funds.
Discussion of the two funding sources proposed for the Development of Permanent Rental Affordable Housing are as follows:
· HOME-ARP Funds: The American Rescue Plan Act of 2021 (ARP) provided $5 billion to assist in providing housing, services, and shelter to “Qualifying Populations”, such as people experiencing homelessness and other vulnerable populations, to jurisdictions that qualified for HOME Investment Partnerships Program (HOME) allocations in Fiscal Year 2021. The purpose of the HOME-ARP funds is to reduce homelessness and increase housing stability.
The City of Visalia has been awarded $1,840,059 in HOME-ARP funds from the U.S.
Department of Housing and Urban Development (HUD). As approved by Council on December 20, 2021, $40,059 of this amount will be used for HOME-ARP administration, and the remaining $1,800,000 for HOME-ARP project activity delivery as shown in Table 1: HOME- ARP Funding Summary.
Table 1: HOME-ARP Funding Summary
HOME-ARP Administration $ 40,059
HOME-ARP Program Delivery 1,800,000
Total HOME-ARP Funding $ 1,840,059
Qualifying Populations:
HOME-ARP funds are required to be used to benefit individuals and families that meet the requirements for the HOME-ARP “qualifying populations” (QPs). HOME-ARP qualifying populations include the following categories:
o Homeless
o At-risk of homelessness
o Fleeing/attempting to flee domestic violence, dating violence, sexual assault, stalking, or human trafficking
o Greatest risk of housing instability
§ Annual income less than 30% of the area median income (AMI) and is experiencing severe cost burden (i.e., paying more than 50% of monthly Visalia City Council Printed on 7/15/2022Page 2 of 7
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household income toward housing costs)
§ Annual income less than 50% of the AMI and meets one of the conditions of “At risk of homelessness” as defined in 24 CFR 91.5(iii)
Permanent Affordable Rental Housing:
HOME-ARP eligible activities include acquisition, construction, and/or rehabilitation of rental housing. Rehabilitation includes conversion of nonresidential building(s) to residential housing.
This category includes development hard and soft costs, relocation, operating cost assistance, and operating reserves. This is the only HOME-ARP eligible activity which allows additional leveraging of the low-income housing funding available in the City’s Successor Agency Housing (SAH) funds.
· Successor Agency Housing Funds: Due to the repayment of past loans made from the Successor Agency Housing (SAH) funds, there is currently $2,129,320 in SAH funds available for the development of permanent affordable housing for low-income households. SAH funds require 30% of funds to be used to develop affordable housing for households at or below 30% of the area median income. SAH funds can be leveraged with the HOME-ARP funds to allow a substantial amount of funding for a larger affordable housing project that would have a greater impact. Council approved $900,000 from the available SAH balance to be combined with the HOME-ARP funds in the HOME-ARP RFP to allow a larger permanent affordable housing project as shown below in Table 2 - SAH Funds Summary. With the award of the HOME-ARP RFP, all available SAH funds will be committed.
Table 2: SAH Funding Summary
Revenue:
SAH Cash Balance $ 2,124,363
Expected Program Income 4,957 Total SAH Revenue $ 2,129,320
Committed:
The Lofts $ 329,320
Navigation Center 800,000
Housing Authority of Tulare County - 621 S. Santa Fe 100,000 Total SAH Committed Funds $ 1,229,320
Total SAH Revenue $ 2,129,320
Total SAH Committed Funds 1,229,320
SAH Uncommitted Available Funds $ 900,000 SAH Uncommitted Available Funds $ 900,000 HOME-ARP Project 900,000
SAH Remaining Balance Committed $ - Visalia City Council Printed on 7/15/2022Page 3 of 7
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On December 20, 2021, Council authorized the release of a Request for Proposals (RFP) seeking a qualified non-profit organization for the development of permanent affordable rental housing for qualifying populations within the City of Visalia with the use of $1,800,000 in HOME Investment Partnership American Rescue Plan Program (HOME-ARP), and $900,000 in Successor Agency Housing (SAH) funds for a total of $2,700,000. The City received three proposals for the solicitation of RFP-21-22-28, development of permanent affordable rental housing for qualifying populations, from RHCB, Self-Help Enterprises (SHE), and Christian Church Homes (CCH). The proposal received are as follows:
· RHCB Proposal: RHCB’s proposal includes development of 42 Permanent Supportive Housing (PSH) units from the rehabilitation and conversion of the existing Majestic Motel property located at 4545 W. Noble Ave. RHCB will acquire, develop, and operate the Majestic as an integrated supportive housing development for people experiencing homelessness. The proposed project will also provide revitalization to the Majestic Motel. Renovations will include conversion of all units to meet Housing Quality Standards. Units will be completely renovated with a new configuration to accommodate kitchenettes. Renovations will also include new flooring, blinds, doors, cabinets, new furnishings, and fresh paint. Exterior renovations will include new paint, concrete, fencing, stair rails, signage, lightening, asphalt, landscaping, and a security system.
The proposed project includes an on-site manager, robust wrap around supportive services to assist in tenant’s long-term housing stability. On-site supportive services include providing early intervention services for issues that may jeopardize housing, such as late rental payment, hoarding, substance abuse, and other lease violations. Additional supportive services include assistance with mainstream benefits, SSI eligibility, annual housing recertification, life skills trainings, financial literacy, and connection to community resources, such as job training. The Majestic is currently being used as a RoomKey project to house those previously located at Sequoia Village while Sequoia Village is under renovation. The oversight and services provided to the current tenants appear to have reduced the number of calls for police service to this location. This effect is expected to continue with the well- designed supportive services to be provided at this site upon completion of the renovation.
The proposed project will serve households earning 0% - 30% of the area median income levels. This proposal would convert the Majestic Hotel’s transient lodging into 42 new housing units, adding to the supply of affordable housing within the City. · SHE Proposal: SHE’s proposal includes development of 11 one-bedroom Permanent Supportive Housing (PSH) units for people experiencing homelessness to be included in a larger project which is an 80-unit multi-family affordable housing development at Rancho Colegio located immediately east of the Navigation Center site at 3700 N. Dinuba Blvd. The proposed project will have one, two, and three-bedroom units serving working families, seniors, individuals, and families experiencing homelessness, and farmworker households.
Rancho Colegio will be a fully integrated community offering multi-generational housing where seniors and young professionals live together in a service-enriched environment. The project includes a 3,000 square foot community center which will provide office space for the full-time, on-site manager, and resident service staff. The community center will be available for family gatherings and community workshops and will also provide space for an after-school program and a variety of resident services, including STEM programs for youth, computer lab and Visalia City Council Printed on 7/15/2022Page 4 of 7
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classes, financial literacy, and various health and wellness activities such as Zumba, and health screenings. Rancho Colegio will serve residents earning 30% - 60% of the area median income levels. The 11 PSH units would be included in the total of 80 units, and funding of this proposal would not increase the number of housing units to be developed. · CCH Proposal: CCH’s Proposal includes development of 11 reserved units for individuals at risk or homeless to be included in a 70-unit senior apartment complex located at 2439 N.
Dinuba Blvd. The proposed project will include a three-story building with stairs and an elevator, with a centrally located courtyard, interior amenity space, and office. CCH maintains a vast network of contacts with agencies and organizations offering vital, no-cost or reduced- cost supportive services to low-income seniors, including those who are frail or at-risk, and disabled. CCH employs Service Coordinators who each month coordinate supportive services for over 4,500 seniors of diverse ethnic backgrounds. Service Coordinators will spend approximately 75% of their working hours with service to residents and providing linkages with agencies who serve seniors. Each contact will also be made in response to the needs of an individual resident. The agency resources enable residents to enhance their quality of life and preserve their health and independence. The goal is to empower individuals to remain independent and prevent unwanted, premature, and costly relocation to a nursing home.
Supportive and social services typically facilitated by the Service Coordinator includes transportation, health care, nutrition, recreational, social activities, volunteer opportunities, translation assistance, chore workers, in-home supportive services, and financial matters. The proposed project will serve senior residents earning 30% - 60% of the area median income levels. The 11 reserved units would be included in the total of 70 units, and funding of this proposal would not increase the number of housing units to be developed.
The City of Visalia evaluation committee, which consisted of two housing staff members and two council members reviewed and scored all proposals based on the merit of each proposal in relation to the HOME-ARP qualifying populations. The committee reviewed submittal completeness, organizational capacity & financial ability, experience & qualifications, record of past performance, program approach, meeting program requirements, timeliness, program outcome, leveraging other funding sources, and any implementation barriers to select the most qualified proposal for award.
Based on overall scores, the evaluation committee recommends to award RFP-21-22-28 for the Development of Permanent Affordable Rental Housing for qualifying populations to RH Community Builders.
Project and Loan Agreement Terms:
In addition to funding from the City, RHCB will apply for State of California Project Homekey Round 3 funds for this project. All City funding will be contingent upon an award of funding from Project Homekey, or another funding source acceptable to the City. The City currently has until September 30, 2030, to spend the HOME-ARP funding and the agreement will establish milestones for RHCB to obtain all necessary funding for the project. Should RHCB be unable to secure the remaining funding necessary for this project in a timely manner, staff will return to Council for direction.
Once all project financing is in place, the City will provide two loans to RHCB for the awarded project.
The first for HOME-ARP funds, in the amount of $1,800,000 and the second for SAH funds in the amount of $900,000, for a total of $2,700,000. Repayment of these loans will be contingent upon the availability of residual receipts from operation of the project. Residual receipts are defined as net Visalia City Council Printed on 7/15/2022Page 5 of 7
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operating revenues (operating revenues less operation and maintenance costs) available from the Project. This will be monitored annually by City staff who will review affordable unit rents, property condition, and financial audits.
Rental Restriction Covenants:
The property will carry two separate rental restriction covenants for each funding source to ensure grant compliance with HOME-ARP and SAH grant funding. The property will carry a twenty (20) year rental restrictive covenant to ensure HOME-ARP compliance that will restrict units to HOME-ARP qualifying populations. Additionally, the property will carry a fifty-five (55) year rental restrictive covenant as required by State law for restricted affordable SAH funds. The City will annually monitor the property for continued restricted use during the life of the affordability periods.
Fiscal Impact:
Approval of this item as recommended would result in the appropriation of $1,800,000 in HOME-ARP funds, and $900,000 in Successor Agency Housing funds in the current 2-year budget for the development of permanent affordable rental housing. Total proposed funding in this item is $2,700,000 ($1,800,000 of HOME-ARP and $900,000 of SAH). No General Fund money is included or requested for this project.
Prior Council Action:
· April 18, 2022: 2022 Action Plan, and 2021 Action Plan Amendment including the HOME-ARP Allocation Plan public hearing and adoption.
· April 4, 2022: Review and comment on the draft 2022 Action Plan, and draft 2021 Action Plan Amendment including the draft HOME-ARP Allocation Plan. · December 20, 2021: HOME-ARP Public Hearing to review and comment on the development of the HOME-ARP Allocation Plan.
Other: None
Alternatives: Council has the option to select one of the other proposed projects; however, the Majestic Project will provide the most Permanent Supportive Housing (PSH) units. The other two projects will only provide 11 PSH units.
Recommended Motion (and Alternative Motions if expected):
I Move that Council:
1) Award RFP-21-22-28 to RH Community Builders (RHCB) for the conversion of the Majestic to develop a 42-unit Permanent Affordable Rental Housing for qualifying populations; and 2) Appropriate HOME Investment Partnership American Rescue Plan Program (HOME-ARP) funds, in the amount of $1,800,000, with HOME-ARP provisions for a period of 20 years with the City of Visalia and RHCB, toward the development of permanent affordable rental housing for qualifying populations; and
3) Appropriate Successor Agency Housing (SAH) funds, in the amount of $900,000, with affordable housing provisions for a period of 55 years, toward the development of permanent affordable rental housing for qualifying populations; and 4) Authorize the City Manager and staff to negotiate, make minor changes, and execute the necessary contracts and loan agreements.
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Environmental Assessment Status: To be completed.
CEQA Review: N/A
Attachments:
· Attachment A - RHCB Proposed Project Approach
· Attachment B - SHE Proposed Project Approach
· Attachment C - CCH Proposed Project Approach
· Attachment D - Draft HOME-ARP Loan Agreement
· Attachment E - Draft SAH Loan Agreement
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1 CITY OF VISALIA
HOME INVESTMENT PARTNERSHIPS AMERICAN RESCUE PLAN PROGRAM (HOME-ARP)
LOAN AGREEMENT
(The Majestic Project)
This HOME-ARP Loan Agreement (the “Agreement”) is made as of the ___ day of ________ 2022, by and between the City of Visalia (“City”), and RH Community Builders L.P., a California Limited Partnership (“Owner”).
RECITALS
A. Owner has acquired certain real property in the City of Visalia located at 4545 W. Noble Avenue, in the City of Visalia, and more particularly described in Exhibit A (the “Property”), on which it will develop an 42-unit multifamily housing project which it will operate as affordable rental housing for HOME-ARP “Qualifying Populations” which include homeless; at-risk of homelessness; fleeing/attempting to flee domestic violence, dating violence, sexual assault, stalking, or human trafficking; and greatest risk of housing stability as determined by the Department of Housing and Urban Development (HUD) persons whose income is 30 percent or less of the area median income as determined by HUD and is experiencing severe cost burden, or persons whose income is 50 percent of the area median income as determined by HUD and meets one of the conditions of “At risk of homelessness” as defined in 24 CFR 91.5(iii), except for one (1) manager’s unit (the “Project”).
B. Owner has requested a loan from the City (the “Loan”) to assist in the construction, rehabilitation and/or permanent financing of the Project.
C. The Loan will be provided by the City in accordance with federal statutes and regulations governing the HOME-ARP Program as set forth in 42 U.S.C. 12741 et seq., 24 CFR Part 92 (the “HOME-ARP Regulations”), all as amended and in effect from time to time.
D. As a condition of the Loan, Owner will execute a regulatory agreement (the “Regulatory Agreement”) to be recorded against the Project which will regulate eleven (11) floating residential units, as allowed pursuant to Section 92.252(j) of the HOME-ARP Regulations, within the 42-unit Project to ensure that the units are occupied by and affordable to HOME-ARP Qualifying Populations who include homeless; at-risk of homelessness; fleeing/attempting to flee domestic violence, dating violence, sexual assault, stalking, or human trafficking; and greatest risk of housing stability as determined by HUD persons whose income is 30 percent or less of the area median income as determined by HUD and is experiencing severe cost burden, or persons whose income is 50 percent of the area median income as determined by HUD and meets one of the conditions of “At risk of homelessness” as defined in 24 CFR
91.5(iii) for the term of the Loan. All of the units, except for the manager’s unit, will be restricted by Successor Agency Housing State Regulations pursuant to a 55-year regulatory agreement to ensure that the units are occupied by and affordable to Low and Very-Low Income Households.
E. Pursuant to this Agreement, the City shall loan One Million Eight Hundred Thousand Dollars and no/100 ($1,800,000.00) (the “Funds”) to Owner, which will be disbursed in accordance with 347
2 this Agreement. This loan that is being made for development costs as allowed under 24 CFR 92.206 of the HOME-ARP Regulations.
F. Pursuant to 24 CFR 92.214 (b)(1)(i) of the HOME-ARP Regulations, HUD permits the City to charge fees to cover the cost of ongoing monitoring and physical inspection of HOME-ARP projects during their period of affordability. Owner agrees to pay the actual annual cost of City monitoring activities for this project, not to exceed Five Thousand Dollars and no/100 ($5,000.00) on an annual basis to the City of Visalia consistent with the requirements of the 24 CFR 92.214 (b)(1)(i) of the HOME-ARP Regulations.
NOW THEREFORE, IN CONSIDERATION of the mutual agreements, obligations, and representations, and in further consideration for the making of the Loan, Owner and City hereby agree as follows:
AGREEMENT
ARTICLE 1
LOAN TERMS
1.1 Loan Agreement. The City agrees to loan, and Owner agrees to borrow an amount not to exceed One Million Eight Hundred Thousand Dollars and no/100 ($1,800,000.00), subject to the conditions and terms of this Agreement. The loan shall be evidenced by a note bearing interest of zero percent (0%) per annum with a term of twenty (20) years (the “Note”) executed by Owner and secured by a deed of trust (the “Deed of Trust”) which will be recorded against the Project prior to, or simultaneously with, any disbursements hereunder. The amortized loan payments will be forgiven annually, on the anniversary of the effective date of this Agreement, contingent upon the property continuing to be used as affordable rental housing for HOME-ARP Qualifying Populations.
1.2 Term of Agreement. The term of this Agreement shall commence upon the date of the recordation of the Regulatory Agreement of the same date herewith and remain in full force and effect and shall apply to the Project through and including the date which is twenty (20) years following the date of recordation of the Regulatory Agreement, unless terminated earlier pursuant to the terms of this Agreement.
1.3 Compliance with Program Requirements. Owner agrees that at all times its acts regarding the Project and the use of funds provided herein it shall be in conformity with all provisions of the HOME-ARP Program including the statutes, rules and regulations and such policies and procedures of HUD pertaining to the HOME-ARP Program. Owner acknowledges that it is familiar with such applicable provisions and has been professionally advised to the extent necessary for the purpose of enabling Owner to fully comply with such provisions.
1.4 Use of Funds.
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3 (a) Owner shall use the HOME-ARP funds for the development costs of the Project in a manner consistent with Section 92.206 of the HOME-ARP Regulations. Costs for development shall only be for work approved by the City at the time of project set-up under the HOME-ARP Regulations or later approved in writing by the City if a modification of the scope of work is necessary. Any expenditure that is not authorized by this Agreement or is found to be ineligible under the HOME-ARP Regulations shall be disallowed, and funds relating to such expenditure must be returned to the City within thirty (30) days of discovery by the City or Owner.
(b) The City shall review and approve written cost estimates, construction contracts, documents and Project plans (i.e., work write-ups and cost estimates);
(c) The City shall conduct initial, progress and final inspections related to construction to ensure that work is done in accordance with the applicable codes, construction contract and construction documents.
(d) Owner agrees that it will not use the HOME-ARP Funds pursuant to this Agreement, either directly or indirectly, as a contribution in order to obtain any other federal funds under any other federal program without prior written approval of the City.
1.5 Scope of Project. The Project shall consist of eleven (11) floating residential units, as allowed pursuant to Section 92.252(j) of the HOME-ARP Regulations, within the 42-unit development, with said forty-two (42) units being occupied by HOME-ARP “Qualifying Populations” which include homeless; at-risk of homelessness; fleeing/attempting to flee domestic violence, dating violence, sexual assault, stalking, or human trafficking; and greatest risk of housing stability as determined by HUD persons whose income is 30 percent or less of the area median income as determined by HUD and is experiencing severe cost burden, or persons whose income is 50 percent of the area median income as determined by HUD and meets one of the conditions of “At risk of homelessness” as defined in 24 CFR
91.5(iii) for the term of the Loan as provided by this Agreement. Owner agrees to complete the development of the Project (“Project Completion”) in accordance with the Scope of Work approved by the City, and described more particularly in Exhibit B, which is attached hereto and incorporated herein by this reference.
(a) The Scope of Work shall be completed in accordance with the time frame established by Section 92.205(e)(2) of the HOME-ARP Regulations, which requires completion of the Project within four (4) years from the commitment of funds, with the possibility of an additional one (1) year extension. Owner agrees to begin construction within 12 months of this Agreement executed date.
(b) Owner intends to be the long-term owner of the Project and the property in fee simple absolute for rental to Qualifying Populations in accordance with Sections 92.252 and 92.300 of the HOME-ARP Regulations. Owner therefore must demonstrate that it will be in sole charge of all aspects of the development process, including obtaining zoning, securing non-HOME-ARP financing, selecting architects, engineers, and general contractors, overseeing the progress of the work, and determining the reasonableness of costs.
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4 1.6 Regulatory Agreement. Owner shall execute a Regulatory Agreement which shall regulate eleven (11) floating HOME-ARP assisted units of the Project to ensure that the units are occupied by HOME-ARP Qualifying Populations for twenty (20) years.
1.7 Disbursement of Funds. During the term of this Agreement, the City shall disburse HOME-ARP Funds to reimburse Owner for development costs of the Project (“Disbursements”) as provided in Section 1.4(a). Owner shall submit to the City an invoice with sufficient back-up documentation of the expenditures which verifies that the cost has been incurred by Owner. City shall make Disbursements of HOME-ARP Funds to Owner only to the extent that: (a) HOME-ARP Funds are available from the HOME-ARP Program; and, (b) the uses of the HOME-ARP Funds are eligible in accordance with the HOME-ARP Program Regulations. If for any reason the HOME-ARP Funds are not available from the HOME-ARP Program, or any of Owner's uses of HOME-ARP Funds are deemed ineligible uses under the HOME-ARP Program Regulations, then the City shall not have an obligation to make Disbursements of HOME-ARP Funds requested by Owner. The aggregate of the Disbursements of the HOME-ARP Funds provided to Owner under this Agreement shall not exceed the amount of the Loan.
1.8 Subordination. The City agrees to subordinate the Deed of Trust and the Regulatory Agreement to any loan from institutional construction and permanent lenders (“Bank”) provided Bank shall agree to include in its subordination agreement conditions substantially similar to the following conditions or as otherwise approved by the City in its reasonable discretion: (i) City shall receive any notices of default issued by such lender to Owner; (ii) City shall have the right to cure any default by Owner after a notice of default. City shall have the right to review and approve the terms and conditions of the Bank’s financing and subordination agreement, which approval shall not be unreasonably withheld. City shall have the right to record a request that City receive notice of any default by Owner under Owner's financing or other financing obtained by Owner with respect to the Project. To implement any such subordination, City agrees to cooperate with Owner and execute such subordination agreements that may be reasonably required, in form and content approved by City Attorney.
ARTICLE 2
GENERAL REQUIREMENTS
2.1 Initial Occupancy. Pursuant to Section 92.252 of the HOME-ARP regulations, the eleven (11) HOME-ARP-assisted units in the Project must be occupied by HOME-ARP Qualifying Populations that are eligible tenants, as provided for herein, within six (6) months following the date of Project Completion. If any of the eleven (11) HOME-ARP-assisted units in the Project are not occupied by households that are eligible tenants within six (6) months of Project Completion, Owner shall submit to City marketing information and a marketing plan. The City will require Owner to repay the HOME- ARP funds invested in any housing unit that has not been initially rented to eligible tenants within eighteen (18) months after the date of Project Completion.
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5 2.2 Income Determinations for Tenants. Owner or Owner’s agent shall make income determinations to assess a prospective tenant’s eligibility to occupy a HOME-ARP funded unit in accordance with Section 92.203 of the HOME-ARP regulations.
2.3 Rental Agreement.
(a) Leases of HOME-ARP-assisted units must comply with Section 92.253 of the HOME-ARP Regulations, as summarized below:
(1) There must be a written lease between the tenant and Owner or Owner’s agent for rental housing assisted with HOME-ARP funds that is for a period of not less than one year, unless by mutual agreement between tenant and owner a shorter period is specified.
(2) Any termination of tenancy or refusal to renew a lease must be preceded by thirty (30) days written notice specifying the grounds for the action by the owner. Owner shall not terminate the tenancy or refuse to renew the lease of a tenant except for serious or repeated violation of the terms and conditions of the lease; for violation of applicable Federal, State, or local law; for completion of the transitional housing tenancy period or failure to follow any required transitional housing supportive services plan; or for other good cause. Any termination or refusal to renew a lease by Owner’s service upon the tenant of a written notice shall be in compliance with State law and tax credit regulations and specify the grounds for the action.
(3) Leases may not contain the following prohibitive clauses:
• Agreement by the tenant to be sued, to admit guilt, or to a judgment in favor of Owner or Owner’s agent in a lawsuit brought in connection with the lease; and • Agreement by the tenant that Owner may take, hold, or sell personal property of household members without notice to the tenant and a court decision on the rights of the parties. This prohibition, however, does not apply to an agreement by the tenant concerning disposition of personal property remaining in the housing unit after the tenant has moved out of the unit. Owner may dispose of this personal property in accordance with State law; and
• Agreement by the tenant not to hold Owner or Owner’s agents legally responsible for any action or failure to act, whether intentional or negligent; and • Agreement of the tenant that Owner or Owner’s agent may institute a lawsuit without notice to the tenant; and
• Agreement by the tenant that Owner or Owner’s agent may evict the tenant or household members without instituting a civil court proceeding in which the tenant has the opportunity to present a defense, or before a court decision on the rights of the parties; and
• Agreement by the tenant to waive any right to a trial by jury; • Agreement by the tenant to waive tenant’s right to appeal, or to otherwise challenge in court, a court decision in connection with the lease; and 351
6 • Agreement by the tenant to pay attorneys’ fees or other legal costs even if the tenant wins in a court proceeding by the owner against the tenant. The tenant, however, may be obligated to pay costs if the tenant loses; and • Agreement by the tenant (other than a tenant in transitional housing) to accept supportive services that are offered.
2.4 Property Standards and Management of HOME-ARP-Assisted Units. Owner must maintain the Project in compliance with all applicable housing quality standards consistent with Section
92.251(f) of the HOME-ARP Regulations, as identified in City’s Multi-family Rental Development Guide, and local code requirements for the duration of this and the Regulatory Agreement.
2.5 Occupancy Procedures. Owner or Owner’s agent must comply with the affirmative marketing requirements established by the Section 92.351 of the HOME-ARP Regulations and the City pursuant to its Multi-family Rental Development Guide, and shall adopt written tenant selection policies and criteria for the HOME-ARP assisted units that:
(a) Limit HOME-ARP units to HOME-ARP qualifying populations which include homeless; at-risk of homelessness; fleeing/attempting to flee domestic violence, dating violence, sexual assault, stalking, or human trafficking; and greatest risk of housing stability as determined by the HUD persons whose income is 30 percent or less of the area median income as determined by HUD and is experiencing severe cost burden, or persons whose income is 50 percent of the area median income as determined by HUD and meets one of the conditions of “At risk of homelessness” as defined in 24 CFR
91.5(iii);
(b) Are reasonably related to program eligibility and the applicants' ability to perform the obligations of the lease; and
(c) Do not exclude an applicant with a certificate or voucher under the Section 8 Tenant-Based Assistance: Housing Choice Voucher Program (24 CFR part 982) or an applicant participating in a HOME-ARP tenant-based rental assistance program because of the status of the prospective tenant as a holder of such certificate, voucher, or comparable HOME-ARP tenant-based assistance document.
(d) Provide for:
(1) The selection of tenants from a written waiting list in the chronological order of their application, insofar as is practicable; and
(2) The prompt written notification to any rejected applicant of the grounds for any rejection.
(e) Do not allow Owner or its officers, employees, agents, elected or appointed officials, consultants of Owner, or immediate family member or immediate family member of an officer, employee, agent, elected or appointed official, or consultant of the Owner, to occupy the HOME-ARP 352
7 funded units during the required period of affordability. This provision does not apply to an employee or agent of the Owner who occupies a housing unit as the Project manager or maintenance worker.
Upon written request of Owner, the City may grant an exception this provision on a case-by-case basis when it determines that the exception will serve to further the purposes of the HOME-ARP program and the effective and efficient administration of Owner's Project. In determining whether to grant a requested exception, the City shall consider the following factors:
(1) Whether the person receiving the benefit is a member of a group or class of low-income persons intended to be the beneficiaries of the assisted housing, and the exception will permit such person to receive generally the same interests or benefits as are being made available or provided to the group or class; and
(2) Whether the person has withdrawn from his or her functions or responsibilities, or the decision-making process with respect to the specific assisted housing in question;
(3) Whether the tenant protection requirements of Section 92.253 of the HOME- ARP Regulations are being observed;
(4) Whether the affirmative marketing requirements of Section 92.351 of the HOME-ARP Regulations are being observed and followed; and
(5) Any other factor relevant to the participating jurisdiction's determination, including the timing of the requested exception.
2.6 Soft Costs to Beneficiaries. Owner or Owner’s agent shall not charge those servicing, origination, or other fees for the purpose of covering costs related to carrying out the Project to the tenant as required by and as identified in Section 92.206(d)(6) and Section 92.214(b) of the HOME-ARP Regulations. Owner or Owner’s agent may charge nominal application fees so long as it is appropriate to the type of application and does not create an undue impediment to a prospective tenant's participation in the City’s HOME-ARP Program. Owner or Owner’s agent shall not charge fees that are not customarily charged in rental housing (e.g., laundry room access fees), except that Owner or Owner’s agent may charge parking fees to tenants only if such fees are customary for rental housing projects in the neighborhood fees for services such as bus transportation or meals, as long as the services are voluntary, and fees are charged for services provided.
2.7 Security Deposits. Any security deposits collected by Owner or Owner's agent shall be kept separate and apart from all other funds of the Project in a trust account with a depository insured by the Federal Deposit Insurance Corporation, or other comparable federal deposit insurance program, and shall be held and disbursed in accordance with California law. The balance of such amount shall at all times equal or exceed the aggregate of all outstanding obligations under said account, plus accrued interest thereon.
2.8 Hazard and Liability Insurance. Owner shall at all times cause the Project to be insured against loss by fire, flood, and such other hazards, casualties, liabilities and contingencies, and in such amounts and for such periods as are reasonably acceptable to the City. All insurance policies and 353
8 renewals thereof shall be issued by a carrier and in a form acceptable to the City. Property insurance policies shall name the City as an additional insured, as approved by the City.
2.9 Hold Harmless. Owner and its successors in interest agree to indemnify, defend, and hold harmless the City and its agents, employees, volunteers and officers from any and all claims, losses, liabilities or causes of action (including reasonable attorney's fees) arising from or in connection with Owner's development, management, maintenance or operation of the Project; provided, however, Owner's obligations to indemnify and hold harmless shall not apply in the event and to the extent of the City's willful misconduct.
2.10 Annual Report. Owner shall file with the City an annual report no later than 120 days following the end of each calendar year. The report shall contain a certification by Owner as to such information as the City may then require including, but not limited to, the following:
(a) The substantial physical defects in the Project, including a description of any major repair or maintenance work undertaken or needed in the previous and current fiscal years. Such statement shall describe what steps Owner has taken in order to maintain the Project in a safe and sanitary condition in accordance with applicable housing and building codes.
(b) The occupancy of the Project including with respect to the eleven (11) HOME- ARP-assisted units:
(1) the verified income of each current household; and
(2) the current rent charged each household and whether these rents include utilities; and
(c) A summary of the information received from the recertification of tenants' incomes: and
(d) Other information reasonably required by the City or HUD.
2.11 City Review and Inspections.
(a) Upon not less than 48 hours' notice to Owner, and subject to the rights of tenants under their existing leases, the City may at any time during the term of this Agreement, enter and inspect the physical premises and inspect all accounting records pertaining to the development or operation of the Project. Upon request by the City, Owner shall notify occupants of upcoming inspections of their units in accordance with State Law. At a minimum, City shall be entitled to conduct completion inspections, ongoing periodic inspections, and annual inspections of the HOME-ARP funded units in accordance with the requirements of Section 92.504(d) of the HOME-ARP Regulations.
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9 (b) The City may request any other information that it deems necessary to monitor compliance with requirements set forth in this Agreement. Such information shall be promptly provided by Owner.
(c) As set forth in Recital F of this Agreement, pursuant to Section 92.214(b)(1)(i) of the HOME-ARP Regulations, HUD permits the City to charge fees to cover the cost of ongoing monitoring and physical inspection of HOME-ARP projects during their period of affordability. Owner agrees to pay the actual annual cost of City monitoring activities for this project, not to exceed Five Thousand Dollars ($5,000.00) on an annual basis, to the City of Visalia for ongoing monitoring and physical inspection of the Project.
2.12 Restrictions on Sale, Encumbrance, and Other Acts.
(a) Except for any senior financing, Owner shall not make any sale, encumbrance, hypothecation, assignment, pledge, conveyance, or transfer in any form of the Project or of any of its interest therein without prior written approval of the City and must meet and conform to all requirements of Section 92.300 of the HOME-ARP Regulations.
(b) Owner shall not permit the use of the Project for any purpose other than that permitted by this Agreement without the prior written approval of the City.
(c) The City may approve a sale, transfer, or conveyance provided that all of the following conditions are met:
(1) Owner is in compliance with this Agreement, or the sale, transfer or conveyance will result in the cure of any existing violations of this Agreement;
(2) the successor-in-interest to Owner agrees to assume all obligations of Owner pursuant to this Agreement and the HOME-ARP Program;
(3) the successor-in-interest demonstrates to the City's satisfaction that it can own and operate the Project in full compliance with all HOME-ARP Program requirements; and
(4) any terms of the sale, transfer or conveyance shall not threaten the City's security or the successor's ability to comply with all HOME-ARP Program requirements.
(d) The City may grant any approval for a sale, transfer, or conveyance subject only to such terms and conditions as may be necessary to ensure compliance with HOME-ARP Program requirements.
2.13 Assignment of City Rights. The City retains the right at its sole discretion to assign all or part of its rights under this Agreement for the purpose of ensuring compliance and enforcement of Owner's duties and obligations hereunder. In addition, the City may designate an agent to act on its behalf in monitoring compliance and enforcing the provisions hereof.
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10 ARTICLE 3
DEFAULTS AND REMEDIES
3.1 Event of Default. Any material breach by Owner of any representation, warranty, or covenant hereunder, which is not cured within thirty (30) days after notice thereof given by the City or, where cure is not possible within thirty (30) days, whose cure is not commenced within thirty days and diligently prosecuted to completion, shall constitute an Event of Default. Notwithstanding anything to the contrary contained herein, the City hereby agrees that any cure of any default made or tendered by one or more of Owner’s partners shall be deemed to be a cure by Owner and shall be accepted or rejected on the same basis as if made or tendered by Owner.
3.2 City's Remedies. Upon the happening of an Event of Default which continues beyond expiration of applicable notice and cure periods, the City may pursue any remedy allowed at law or in equity, including but not limited to, accelerating payment under the Note, or applying to any State court for specific performance of this Agreement and the Regulatory Agreement.
ARTICLE 4
HOME-ARP PROGRAM REQUIREMENTS
4.1 HOME-ARP Laws & Regulations. Owner shall comply with all applicable laws and regulations governing the HOME-ARP Program and the use of the HOME-ARP Loan, as set forth in 24 CFR Part 92 et seq., all as amended and in effect from time to time, including (but not limited to) the requirements set forth in the HOME-ARP Regulatory Agreement. In the event of any conflict between this Agreement and applicable laws and regulations governing the HOME-ARP Program and the use of the Loan proceeds, the applicable HOME-ARP Program laws and regulations shall govern. Owner agrees to enter into any modification of this Agreement and/or the Regulatory Agreement reasonably required by the City to attain compliance with the requirements of the HOME-ARP Program. Owner acknowledges and agrees that it has received and reviewed a copy of the regulations regarding the HOME-ARP Program in effect as of the date of execution of this Agreement.
4.2 Specific Requirements. The laws and regulations governing the HOME-ARP Program and the use of the HOME-ARP Loan include (but are not limited to) the following:
(a) Environment and Historic Preservation. Section 104(f) of the Housing and Community Residence Act of 1974 and 24 CFR Part 58, which prescribe procedures for compliance with the National Environmental Policy Act of 1969 (42 U.S.C. 4321-4361), and the additional laws and authorities listed at 24 C.F.R. 58.5.
(b) Uniform Administrative Requirements. The requirements of 2 CFR Part 200 Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards.
(c) Architectural Barriers. The requirements of the Architectural Barriers Act of 1968 (42 U.S.C. 4l5l-4l57).
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11 (d) Lead-Based Paint. The requirements of the Lead-Based Paint Poisoning Prevention Act, as amended (42 U.S.C. 4821 et seq.) and implementing regulations at 24 CFR Part 35.
(e) Relocation. The requirements of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, and similar state laws. If and to the extent that acquisition and rehabilitation of the Project results in the permanent or temporary displacement of residential tenants, homeowners, or businesses, then Owner shall comply with all applicable local, state, and federal statutes and regulations with respect to relocation planning, advisory assistance, and payment of monetary benefits. Owner shall be solely responsible for payment of any relocation benefits to any displaced persons and any other obligations associated with complying with such relocation laws.
(f) Disabled Discrimination. The requirements of Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 706), and federal regulations issued pursuant thereto (24 CFR Part 8), which prohibit discrimination against the disabled in any federally assisted program.
(g) Training Opportunities. The requirements of Section 3 of the Housing and Urban Development Act of 1978, as amended, 12 U.S.C. 1701, requiring that to the greatest extent feasible opportunities for training and employment be given to lower income residents of the project area and agreements for work in connection with the project be awarded to business concerns which are located in, or owned in substantial part by persons residing in, the areas of the project. Owner agrees to include the following language in all subcontracts executed under this Agreement:
“The work to be performed under this agreement is a project assisted under a program providing direct federal financial assistance from HUD and is subject to the requirements of Section 3 of the Housing and Urban Development Act of 1968, as amended 12 U.S.C. 1701. Section 3 requires that to the greatest extent feasible opportunities for training and employment be given to lower income residents of the project area and agreements for work in connection with the project be awarded to business concerns which are located in, or owned in substantial part by persons residing in, the areas of the project.”
(h) Title VIII of the Civil Rights Act of 1968, 42 U.S.C. 3601-20 (Public Law 90-284) and implementing regulations at 24 CFR Part 107.
(i) Executive Order 11063 and regulations at 24 CFR Part 107.
(j) Title VI of the Civil Rights Act of 1964 (Public Law 88-352) and regulations at 24 CFR Part 107.
(k) The Age Discrimination Act of 1975, 42 U.S.C. 6101-07, and regulations at 24 CFR Part 146.
(l) Executive Order 12372 and implementing regulations at 24 CFR Part 52, regarding intergovernmental review of federal programs.
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12 (m) Flood Disaster Act of 1973, 42 U.S.C. 4001, et seq.
(n) Drug Free Workplace Act of 1988, P.L. 100-690, Title V, Subtitle D.
(o) Any other Department of Housing and Urban Development regulations currently in effect or as may be amended or added in the future pertaining to the HOME-ARP Program.
(p) The Fair Housing Act (42 U.S.C. 3601-3620)(Pub. L. 90-284) as it ensures fair housing practices and prohibits housing discrimination based on race, color, religion, sex, national origin, disability, or familial status.
(q) Section 109 of the Housing and Community Development Act of l974, as amended; and the regulations issued pursuant thereto at 24 CFR Section 470.601 as it relates to prohibiting discriminatory actions in activities funded by Community Development Funds.
(r) Executive Order 11246, as amended by Executive Orders 11375, 11478, 12086 and 12107 (Equal Employment Opportunity) and implementing regulations issued at 41 CFR Chapter 60 and Section 3 of the Housing and Urban Development Act of l968 (12 U.S.C. 1701u), as amended and implementing regulations at 24 CFR part 135 as they relate to equal employment opportunities.
(s) Executive Orders 11625 and 12432 (concerning minority business enterprise) and 12138 (concerning women's business enterprise) to encourage the use of women and minority owned businesses to the maximum extent possible.
(t) Use of debarred, suspended, or ineligible contractors or subrecipients is prohibited directly or indirectly as part of this award as set forth in 24 CFR part 5.
(u) No member, officer or employee of the organization, or its designees or agents, no member of the governing body of the locality in which the program is situated, and no other public official of such locality or localities who exercises any functions or responsibilities with respect to the program during his/her tenure or for one year thereafter, shall have any interest, direct or indirect, in any contract or subcontract, or the proceeds thereof, for work to be performed in connection with the loan, and Owner shall incorporate, or cause to be incorporated, in all such contracts or subcontracts a provision prohibiting such interest pursuant to the purposes of the certification.
(v) There shall be no religious worship, instruction, or proselytizing as part of, or in connection with the performance of this agreement.
(w) Davis Bacon. All contracts for new construction or rehabilitation projects with 12 or more HOME-ARP-assisted units shall comply with HUD requirements and the applicable requirements of the regulations of the Department of Labor under 29 CFR Parts 1, 3, and 5 governing the payment of wages and the ratio of apprentices and trainees to journeypersons.
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13 4.3 Limitation in Use of Funds. Owner agrees that it will not use funds loaned pursuant to this Agreement, either directly or indirectly, as a contribution in order to obtain any Federal funds under any Federal programs without prior written approval of the City.
4.4 Certification Regarding Lobbying. The undersigned certifies, to the best of his or her knowledge and belief, that:
(a) No federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned to any person for influencing or attempting to influence an officer or employee of an agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any federal grant, the making of any federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any federal contract, grant, loan, or cooperative agreement.
(b) If any funds other than federally appropriated funds have been paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit Standard Form-LLL. “Disclosure form to Report Lobbying” in accordance with its instructions.
ARTICLE 5
MISCELLANEOUS PROVISIONS
5.1 Conflict of Interest. No employee, agent, consultant, officer, elected or appointed official or member of the City has or may obtain a personal or financial interest in or benefit from Owner or the Project or in any contract or subcontract or agreement, or the proceeds thereof, relating to the Project either for themselves or for those with whom they have family or business ties, during their tenure or one year thereafter, as referenced under 24 CFR 92.356(f)(1), which provides as follows :
“Owners, Developers, Sponsors. (1) No owner, developer, or sponsor of a project assisted with HOME-ARP funds (or officer, employee, agent, elected or appointed official, or consultant of the owner, developer, or sponsor or immediate family member or immediate family member of an officer, employee, agent, elected or appointed official, or consultant of the owner, developer, or sponsor) whether private, for-profit or nonprofit (including a community housing development organization (CHDO) when acting as an owner, developer, or sponsor) may occupy a HOME- ARP-assisted affordable housing unit in a project during the required period of affordability specified in §92.252(e) or §92.254(a)(4). This provision does not apply to an individual who receives HOME-ARP funds to acquire or rehabilitate his or her principal residence or to an employee or agent of the owner or developer of a rental housing project who occupies a housing unit as the project manager or maintenance worker.”
5.2 Nondiscrimination. Owner shall not discriminate against any prospective tenant in the use, enjoyment, occupancy, conveyance, lease, sublease, or rental of any part of the Project on the basis of race, color, ancestry, national origin, religion, sex, sexual preference, age, marital status, family status, source of income, physical or mental disability, Acquired Immune Deficiency Syndrome (AIDS) or AIDS-related conditions (ARC), or any other arbitrary basis. Owner shall otherwise comply with all applicable local, state, and federal laws concerning discrimination in housing. 359
14 5.3 Amendment. This Agreement may be amended only by a writing signed by authorized representatives of the City and Owner; the City Manager of the City shall be authorized to act on behalf of the City.
5.4 Notice. Any notice required or authorized under this Agreement shall be effective if, and only if, in writing and if mailed or emailed, to the party in question at the address shown below:
CITY: City of Visalia
Finance Department - Housing
707 W. Acequia Avenue
Visalia, CA 93291
Email: [email protected]
Owner: RH Community Builders
Attention: Wayne Rutledge, CEO
352 W. Bedford Avenue, Suite 110
Fresno, CA 93711
Email: [email protected]
5.5 No Waiver. No failure to enforce or delay in enforcing or exercising any right or remedy available under this Agreement shall impair the exercise of such right or remedy or the exercise of a similar right or remedy on a subsequent occasion.
5.6 Severability. Should any provision of this Agreement be found invalid by a court or other body of competent jurisdiction, said invalidity or ineffectiveness shall not affect the validity of the remaining provisions which shall remain in force to the maximum extent possible.
5.7 Titles and Headings. The titles and headings in this Agreement are for convenience only and shall not be construed to affect the meaning or construction of any provision of this Agreement.
5.8 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California.
5.9 Attorneys' Fees. The prevailing party shall be entitled to receive the amount of its legal expenses, including reasonable attorneys' fees, expert legal fees and other legal costs and expenses, in the event of any legal action brought under or to enforce the provisions of this Agreement.
5.10 Signs. During the construction period, should Owner be required to place signage on the property identifying the sources of Project funding, Owner shall include verbiage stating the HOME- ARP program is providing financing for the Project.
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15 IN WITNESS WHEREOF, City and Owner have executed this Agreement on the respective dates set forth below.
City:
City of Visalia
By: _________________________
Name: _______________________
Its: __________________________
Date:
Attest: _______________________
Chief Deputy City Clerk
Approved as to form:
___________________________
City Attorney
Owner:
RH Community Builders L.P., a California limited partnership
By: WRBH LLC, a California limited liability company, its General Partner
___________________________
By: Wayne Rutledge, its Manager
By: AHBH LLC, a California limited liability company, its Co-Limited Partner
________________________
By: Brad Hardie, its Manager
By: Wayne and Rena Rutledge Revocable Trust, its Co-Limited Partner
__________________________
By: Wayne Rutledge, its Trustee
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16 EXHIBIT A
LEGAL DESCRIPTION FOR PROJECT PROPERTY
To be added.
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17 EXHIBIT B
Scope of Work
General Description
RHCB’s proposed project includes development of 42 affordable rental housing units from the rehabilitation and conversion of the existing Majestic Motel property located at 4545 W. Noble Ave.
RHCB will acquire, develop, and operate the Majestic as an integrated supportive housing development for people experiencing homelessness. The proposed project will also provide revitalization to the Majestic Motel. Renovations will include conversion of all units to meet Housing Quality Standards.
Units will be completely renovated with a new configuration to accommodate kitchenettes. Renovations will also include new flooring, blinds, doors, cabinets, new furnishings, and fresh paint. Exterior renovations will include new paint, concrete, fencing, stair rails, signage, lightening, asphalt, landscaping, and a security system.
The proposed project includes an on-site manager, robust wrap around supportive services to assist in tenant’s long-term housing stability. On-site supportive services include providing early intervention services for issues that may jeopardize housing, such as late rental payment, hoarding, substance abuse, and other lease violations. Additional supportive services include assistance with mainstream benefits, SSI eligibility, annual housing recertification, life skills trainings, financial literacy, and connection to community resources, such as job training. The Majestic is currently being used as a RoomKey project to house those previously located at Sequoia Village while Sequoia Village is under renovation. The proposed project will serve households earning 0% - 30% of the area median income levels. This proposal would convert the Majestic Hotel’s transient lodging into 42 new housing units, adding to the supply of affordable housing withing the City.
Rents
HOME-ARP assisted units must meet High and Low HOME-ARP rent requirements. At least 20% of the HOME-ARP assisted units must be occupied by very low -income households and meet one of the following rent requirements:
1. The rent does not exceed 30% if the annua l income of a household whose income equals 50% of the AMI, as determined by HUD.
2. The rent does not exceed 30% of the household’s adjusted income. If the unit receives Federal or State project -based rental subsid y and the very low -income household pays as a contribution toward rent not more than 30% of the households adjusted income, then the maximum rent (i.e., tenant contribution plus project -based rental subsidy) is the rent allowable under the Federal or State project-based rental subsidy Program.
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18 Loan Terms
The loan will be a zero percent (0 %), 20-year term loan in the amount of One Million Eight Hundred Thousand Dollars and no/100 ( $1,800,000.00). The amortized loan payments will be forgiven annually, on the anniversary of the effective date of th is agreement, contingent upon the property continuing to be used as agreed upon according to the terms of this agreement. Failure to abide by the terms of this agreement will result in the entire loan amount becoming due and payable. The HOME-ARP funds will be used during the development stage to pay for costs such as allowable development hard and soft costs under 24 CFR 92.206.
Deed Restrictions and Long-Term Use of Property
As a condition of the Loan, a Regulatory Agreement recorded against the Project for a 20-year affordability period, which will regulate eleven (11) floating residential units, as allowed pursuant to Section 92.252(j) of the HOME-ARP Regulations, within the 42-unit Project to ensure that the units are occupied by and affordable to HOME-ARP Qualifying Populations who include homeless; at-risk of homelessness; fleeing/attempting to flee domestic violence, dating violence, sexual assault, stalking, or human trafficking; and greatest risk of housing stability as determined by HUD persons whose income is 30 percent or less of the area median income as determined by HUD and is experiencing severe cost burden, or persons whose income is 50 percent of the area median income as determined by HUD and meets one of the conditions of “At risk of homelessness” as defined in 24 CFR 91.5(iii) for the term of the Loan. All the units, except for the manager’s unit, will also be restricted by Successor Agency Housing State Regulations pursuant to a 55-year regulatory agreement to ensure that the units are occupied by and affordable to Low and Very-Low Income Households.
Ownership Structure
The project will be owned by RH Community Builders.
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1 HOUSING SUCCESSOR LOAN AGREEMENT
BETWEEN THE CITY OF VISALIA AND RH COMMUNITY BUILDERS L.P.
THIS AGREEMENT ("Agreement") dated as of _______________, 2022, is entered into by and between the CITY OF VISALIA, in its capacity as Housing Successor to the former Community Redevelopment Agency of the City of Visalia ("City"), and RH Community Builders L.P., a California limited partnership (hereinafter “RHCB”).
RECITALS
The following recitals are a substantive part of this Agreement:
A. RHCB desires to develop a 42-unit multifamily affordable rental project, located at 4545 West Noble Avenue in the City of Visalia, and more particularly described and identified in "Exhibit A," attached hereto and incorporated herein (the "Property"); and B. RHCB is a limited partnership, the sole member of the general partner of which is a non-profit organization that, among other things, rehabilitates, and develops affordable housing projects; and
C. Pursuant to Section 34176.1(a)(3) of the California Health and Safety Code, the City, as the housing successor to the Community Redevelopment Agency of the City of Visalia, has authority to utilize funding from its Successor Agency Housing Fund for the purpose of developing housing affordable to and occupied by households earning 80% or less of the area median income, including households earning 30% or less of the area median income; and D. RHCB proposes to develop a multifamily affordable rental housing complex with 42-units, composed of one manager’s unit and 41 units committed to low-income affordable housing on the Property (the "Project). The Project will be rented to qualified low-income households as defined in the CRL and the terms and conditions set forth herein, so that the Property will be utilized for affordable housing for the longest feasible period; and
E. City and RHCB desire to enter into this Agreement to set the terms and conditions under which City can loan to RHCB a portion of the City's available Successor Agency Housing Fund for the Project.
NOW, THEREFORE, City and RHCB hereby agree as follows:
1. CITY LOAN
a. Loan Terms. In consideration of RHCB's obligations hereunder, and to ensure the Project remains affordable in accordance with the Rental Restriction (provided for under Section 3 hereof), and subject to the terms and conditions of this Agreement, the City will provide financial assistance to RHCB for the Project in an amount up to Nine Hundred Thousand Dollars ($900,000.00) to assist in acquisition and construction of the Project. As evidence of the City Loan, RHCB shall execute and deliver a promissory note to City in the form acceptable to City, which Note shall be in the initial principal amount of the City Loan. The Note shall be secured by a standard form Deed of Trust from a title company acceptable to the City, and an Addendum to Deed of Trust in a form acceptable to the City, to be recorded against the Property. 365
2 b. Disbursement of City Loan. City shall provide to RHCB up to Nine Hundred Thousand Dollars ($900,000.00) for the actual cost of acquisition and construction of the Project.
Funding shall be disbursed on a reimbursement basis for Project costs actually incurred. RHCB shall submit invoices, as well as any other documentation required by the City necessary to support reimbursement for Project expenditures.
c. Requirements of RHCB The City loan shall be used for acquisition and construction of the dwelling units on the Property in substantial conformance with the line items identified in the “Project Budget,” attached hereto as Exhibit “B” and incorporated herein by this reference. The City loan shall be a fifty-five (55) year, 0% interest principal only loan, payable by RHCB and its successors and assigns, in accord with the terms and conditions contained in this Agreement, and in the Note and the amortization schedule attached thereto.
The City Loan shall be repayable to the City in fifty-five (55) annual payments commencing on the first-year anniversary of this Agreement, however each annual payment on the City Loan shall only be required to the extent there is cash flow available from the Project. In each year that RHCB demonstrates that no cash flow is available to pay such payments as determined in the order of priority set forth in Section 7.03 of RHCB Amended and Restated Partnership Agreement, the principal balance of the loan shall accrue and be payable to the extent of Cash Flow for the following year. Cash Flow shall have the definition set forth in Borrower’s Amended and Restated Partnership Agreement. If the Project fails to generate Cash Flow sufficient to make payments for an annual period, no annual payment shall be due. If the Project generates Cash Flow in an amount less than the required annual payment, then only such amount shall be due, and the remainder shall accrue. Should RHCB, its successors, or assigns sell the Property or fail to satisfy any of the terms and conditions herein, and as stated in the Rental Restriction required in Section 3, which are not otherwise waived by the City, RHCB shall be obligated to repay the City Loan in full within 30 days of written notification by the City.
i. Subject to the expiration of any applicable cure period, RHCB shall not be in default of any of its obligations under the terms of this Agreement. ii. Recordation of Resale Restriction. Prior to the initial disbursement of funds from City to RHCB, RHCB shall execute and record the Rental Restriction required herein.
iii. Within 30 days of the execution of this Agreement, RHCB shall have furnished City with evidence of the insurance coverage required under Section 2.
iv. RHCB shall assist City with and shall provide all documentation necessary for all reporting requirements and obligations required by the State and local law.
2. DEVELOPMENT OF THE PROPERTY
a. Scope of Development. RHCB shall acquire all of the parcels comprising the Property, and shall develop a 42-unit multifamily affordable rental housing complex, that will be committed to multifamily affordable housing on the Property in accordance with the Project Plans, Schedule and Budget attached hereto as "Exhibit B." 366
3 b. Insurance and Indemnification. RHCB shall at all times cause the Project to be insured against loss by fire, flood, and such other hazards, casualties, liabilities and contingencies, in an amount not less than the full insurable value of the Project on a replacement cost basis and shall furnish or cause to be furnished to the City evidence satisfactory to City that RHCB and any contractor with whom it has contracted for the performance of work on the Property or otherwise pursuant to this Agreement carries workers' compensation insurance as required by law. All insurance policies and renewals thereof shall be issued by a carrier and in a form acceptable to the City. Property insurance policies shall name the City as an additional insured, as approved by the City.
RHCB and its successors in interest agree to indemnify, defend, and hold harmless the City and its agents, employees, volunteers and officers from any and all claims, losses, liabilities or causes of action (including reasonable attorney's fees) arising from or in connection with RHCB's development, management, maintenance or operation of the Project; provided, however, RHCB's obligations to indemnify and hold harmless shall not apply in the event and to the extent of the City's willful misconduct or gross negligence.
c. City and Other Governmental Agency Permits. RHCB shall secure and maintain, or cause to be secured and maintained, any and all permits or entitlements that may be required by City or any other governmental agency affected, or which has jurisdiction over the construction of the Project.
d. Antidiscrimination during Construction. RHCB, for itself, and its successors and assigns, agrees that in the construction of Project on the property, RHCB shall not discriminate against any employee or applicant for employment because of race, color, creed, religion, sex, marital status, ancestry, or national origin. e. Compliance with Laws. RHCB shall carry out the construction and development of the Project in conformity with all applicable laws; City zoning and development standards; building, plumbing, mechanical and electrical codes; all other provisions of the City's Municipal Code; and all applicable disabled and handicapped access requirements, including the Americans With Disabilities Act, 42 U.S.C. Section 12101, et seq., Government Code Section 4450, et seq., Government Code Section 7260, et seq., Government Code Section 11135, et seq., and the Unruh Civil Rights Act, Civil Code Section 51, et seq.
f. Prevailing Wages. To the extent applicable, RHCB shall comply with all requirements of the Department of Industrial Relations in accordance with the California Labor Code, and all other applicable federal, state, and local laws and regulations pertaining to labor standards and payment of prevailing wages (collectively, "Prevailing Wage Laws"). As applicable, RHCB shall (i) require its contractors and subcontractors to submit certified copies of payroll records to RHCB; (ii) maintain complete copies of such certified payroll records; and (iii) make such records available to City and its designees for inspection and copying during regular business hours at the Property or at another location within the City of Visalia.
RHCB shall defend, indemnify and hold harmless City and its officers, employees, volunteers, agents and representatives from and against any and all present and future causes of action, claims, liabilities, obligations, damages, fines, penalties, judgments, actions or expenses 367
4 (including attorney fees) (collectively, the "Claims"), arising out of or in any way connected with RHCB's obligation to comply with all governmental requirements, including all Claims that may be made by contractors, subcontractors or other third party claimants pursuant to Labor Code Sections 1726 and 1781, as amended and added by Senate Bill 966.
RHCB hereby waives, releases and discharges forever City, and its employees, officers, volunteers, agents, and representatives, from any and all present and future Claims arising out of or in any way connected with RHCB's obligation to comply with all Prevailing Wage Laws in connection with the work of the Improvements.
RHCB is aware of and familiar with the provisions of Section 1542 of the California Civil Code which provides as follows:
A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE
CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT
THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM
MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE
DEBTOR.
As such relates to this Section 2, RHCB hereby waives and relinquishes all rights and benefits which it may have under Section 1542 of the California Civil Code. g. Taxes and Assessments. RHCB shall pay prior to delinquency all ad valorem real estate taxes and assessments on the Property, subject to RHCB's right to contest in good faith any such taxes. RHCB shall remove or have removed any levy or attachment made on the Property or any part thereof or assure the satisfaction thereof within thirty (30) days following the date of attachment or levy.
h. Condition of the Property. RHCB shall take all necessary precautions to prevent the release into the environment of any Hazardous Materials (as defined below) that are located in, on or under the Property. Such precautions shall include compliance with all Governmental Requirements with respect to Hazardous Materials. In addition, RHCB shall install and utilize such equipment and implement and adhere to such procedures as are consistent with the standards prevailing in the industry, to the extent such standards exceed applicable Governmental Requirements, as respects the disclosure, storage, use, removal, and disposal of Hazardous Materials. RHCB shall cause each release of Hazardous Materials in, on or under the Property to be remediated in accordance with all Governmental Requirements.
RHCB agrees to indemnify, defend and hold City, City and their officers, employees, volunteers, agents and representatives harmless from and against any and all Claims, resulting from, arising out of, or based upon (i) the presence, release, use, generation, discharge, storage or disposal of any Hazardous Materials on, under, in or about, or the transportation of any such Hazardous Materials to or from, the Property, or (ii) the violation, or alleged violation, of any statute, ordinance, order, rule, regulation, permit, judgment or license relating to the use, generation, release, discharge, storage, disposal or transportation of Hazardous Materials on, under, in or about, to or from, the Property, caused by RHCB or any of RHCB's predecessors in interest. This indemnity shall include any damage, liability, fine, penalty, parallel indemnity, cost, or expense arising from or out of any claim, action, suit or proceeding for bodily injury 368
5 (including sickness, disease or death), tangible or intangible property damage, compensation for lost wages, business income, profits or other economic or consequential loss, damage to the natural resource or the environment, nuisance, contamination, leak, spill, release or other adverse effects on the environment but shall exclude any claims resulting from the gross negligence and/or willful misconduct of the City.
"Hazardous Materials" means any substance, material, or waste which is or becomes regulated by any local governmental authority, the State of California, or the United States Government, including, but not limited to, any material or substance which is: (i) defined as a "hazardous waste," "extremely hazardous waste," or "restricted hazardous waste" under Sections 25115, 25117 or 25122.7, or listed pursuant to Section 25140 of the California Health and Safety Code, Division 20, Chapter 6.5 (Hazardous Waste Control Law); (ii) defined as a "hazardous substance" under Section 25316 of the California Health and Safety Code, Division 20, Chapter
6.8 (Carpenter-Presley-Tanner Hazardous Substance Account Act); (iii) defined as a "hazardous material," "hazardous substance," or "hazardous waste" under Section 25501 of the California Health and Safety Code, Division 20, Chapter 6.95 (Hazardous Materials Release Response Plans and Inventory); (iv) defined as a "hazardous substance" under Section 25281 of the California Health and Safety Code, Division 20, Chapter 6.7 (Underground Storage of Hazardous Substances); (v) petroleum; (vi) friable asbestos; (vii) polychlorinated biphenyls; (viii) listed under Article 9 or defined as "hazardous" or "extremely hazardous" pursuant to Article 11 of Title 22 of the California Administrative Code, Division 4, Chapter 20; (ix) designated as "hazardous substances" pursuant to Section 311 of the Clean Water Act (33 U.S.C. §1317); (x) defined as a "hazardous waste" pursuant to Section 1004 of the Resource Conservation and Recovery Act, 42 U.S.C. §6901, et seq. (42 U.S.C. §6903); or (xi) defined as "hazardous substances" pursuant to Section 101 of the Comprehensive Environmental Response, Compensation, and Liability Act, 42 U.S.C. §9601, et seq., as the foregoing statutes and regulations now exist or may hereafter be amended.
3. COVENANTS, RESTRICTIONS AND AGREEMENTS
a. Use Covenants; Rental Restrictions. RHCB covenants and agrees for itself, its successors, its assigns and every successor in interest that, the Property shall be used for affordable housing purposes and that the Project to be constructed on the Property shall be rented to qualified low-income households ("Qualified Household"), in accordance with the terms of the Rental Restriction Agreement to be provided by City (the "Rental Restriction"). The foregoing covenant shall run with the land. Failure to maintain the use of the Property and the Project in accordance with this Section shall be a material default of this Agreement. b. Maintenance Covenants. RHCB shall maintain the Project in accordance with the custom and practice generally applicable to multifamily residential units in the City of Visalia, the Project and associated landscaping on the Property. Said maintenance shall include, but not be limited to, the building, sidewalks, lighting, landscaping, irrigation of landscaping, and any and all other improvements on the Property.
c. Obligation to Refrain from Discrimination. RHCB covenants by and for itself and any successors in interest that there shall be no discrimination against or segregation of any person or group of persons on account of race, color, creed, religion, sex, sexual preference, source of income, marital status, national origin or ancestry in the sale, lease, sublease, transfer, 369
6 use, occupancy, tenure or enjoyment of the Property, nor shall RHCB itself or any person claiming under or through them establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees of the Property. The foregoing covenants shall run with the land.
d. Form of Nondiscrimination and Nonsegregation Covenants. All deeds, leases or contracts for the rental, sale or lease of the Property shall contain or be subject to substantially the following nondiscrimination or nonsegregation clauses:
i. In deeds. "The grantee herein covenants by and for himself or herself, his or her heirs, executors, administrators and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, sexual preference, source of income, marital status, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the land herein conveyed, nor shall the grantee or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees in the land herein conveyed. The foregoing covenants shall run with the land." ii. In leases. "The lessee herein covenants by and for himself or herself, his or her heirs, executors, administrators, and assigns, and all persons claiming under or through him or her, and this lease is made and accepted upon and subject to the following conditions: that there shall be no discrimination against or segregation of any person or group of persons, on account of race, color, creed, religion, sex, sexual preference, source of income, marital status, national origin, or ancestry in the leasing, subleasing, transferring, use, occupancy, tenure, or enjoyment of the premises herein leased nor shall the lessee himself or herself, or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy of tenants, lessees, sublessees, subtenants, or vendees in the premises herein leased." iii. In contracts. "There shall be no discrimination against or segregation of, any person, or group of persons on account of race, color, creed, religion, sex, sexual preference, source of income, marital status, national origin, or ancestry, in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the premises, nor shall the transferee himself or herself or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees of the premises."
e. Rights of Access. For purposes of assuring compliance with this Agreement, representatives of the City shall have the right of access to the Property, without charges or fees, at normal business hours. The City (or its representatives) shall, except in emergency situations, notify RHCB prior to exercising its rights pursuant to this Section. Nothing herein shall be deemed to limit the ability of the City to conduct code enforcement and other administrative inspections of the Property in accordance with applicable law. 370
7 f. Effect of Violation of the Terms and Provisions of this Agreement after Completion of Rehabilitation. City is deemed to be the beneficiary of the terms and provisions of this Agreement and of the covenants running with the land, for and in its own right and for the purposes of protecting the interests of the community and other parties, public or private, in whose favor and for whose benefit this Agreement and the covenants running with the land have been provided, without regard to whether the City has been, remains or is an owner of any land or interest therein in the Property. City shall have the right, if the Agreement or covenants are breached, to exercise all rights and remedies, and to maintain any actions or suits at law or in equity or other proper proceedings to enforce the curing of such breaches to which it or any other beneficiaries of this Agreement and covenants may be entitled. Unless otherwise specifically provided, the covenants contained in this Agreement shall remain in effect until the issuance by the City of a certificate of occupancy for the Project, except for the following:
i. The covenants pertaining to use and maintenance of the Property and all improvements thereon, shall remain in effect for fifty-five (55) years from the date of recordation of the Rental Restriction.
ii. The covenants against discrimination shall remain in effect in perpetuity.
4. DEFAULTS AND REMEDIES
a. Default Remedies. Subject to the permitted extensions of time as provided in Section 5 of this Agreement, failure by any party to perform any action or covenant required by this Agreement within the time periods provided herein following Notice and expiration of any applicable cure period, shall constitute a "Default" under this Agreement. A party claiming a Default shall give written Notice of Default to the defaulting party specifying the Default complained of. Except as otherwise expressly provided in this Agreement, the claimant shall not institute any proceeding against any other party, and no other party shall be in Default if such party within thirty (30) days following receipt of such Notice of Default immediately, with due diligence, commences to cure, correct, or remedy such failure or delay and completes such cure, correction or remedy with diligence.
b. Institution of Legal Actions. Except as otherwise specifically provided herein, upon the occurrence of a Default, the party or parties claiming a Default shall have the right, in addition to any other rights or remedies, to institute any action at law or in equity to cure, correct, prevent, or remedy any Default, or to recover damages for any Default, or to obtain any other remedy consistent with the purpose of this Agreement. Such legal actions must be instituted in the Superior Court of the County of Tulare, State of California, in an appropriate superior court in that County or in the Federal District Court for the Central District of the State of California.
Notwithstanding anything herein to the contrary, RHCB's right to recover damages in the event of a Default by City shall be limited to recovery of actual damages and shall exclude consequential damages.
c. Acceptance of Service of Process. In the event that any legal action is commenced by RHCB against the City, service of process on the City shall be made by personal service upon the City Clerk of the City or in such other manner as may be provided by law. In the event that any legal action is commenced by the City against RHCB, service of process on RHCB shall be made by personal service upon a Director of RHCB, or in such other manner as may be provided by law.
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8 d. Rights and Remedies Are Cumulative. The rights and remedies of the parties are cumulative, and the exercise by any party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party, except as otherwise expressly provided herein or in the limited recourse provisions in the Note. e. Inaction Not a Waiver of Default . Any failures or delays by any party in asserting any of its rights and remedies as to any Defa ult shall not operate as a waiver of any Default or of any such rights or remedies or deprive either such party of its righ t to institute and maintain any actions or proceedings which it may deem necessary to protect, assert or enforce any such rights or remedies.
5. GENERAL PROVISIONS
a. Notices, Demands and Communications between the Parties. Any approval, disapproval, demand, document or other notice ("Notice") which any party may desire to give to the other parties under this Agreement must be in writing and may be given by any commercially acceptable means, including, but not limited to, via overnight courier, to the party to whom the Notice is directed at the address of the party as set forth below, or at any other address as that party may later designate by Notice.
To City: City of Visalia
Attention: Finance Department - Housing
707 W. Acequia Avenue
Visalia, CA 93291
Email: [email protected]
Phone: (559) 713-4460
To RHCB: RH Community Builders
352 W. Bedford Ave. Ste. 110
Fresno, CA 93711
Phone: (559) 213-7373
Any written notice, demand or communication shall be deemed received immediately if delivered by hand, on the third day from the date it is postmarked if delivered by first-class mail, postage prepaid, upon receipt of verification of transmission if sent via facsimile provided a copy is sent the same day via first-class mail, and on the next business day if sent via nationally recognized overnight courier. Notices sent by a party's attorney on behalf of such party shall be deemed delivered by such party.
b. Enforced Delay; Extension of Times of Performance. Subject to the limitations set forth below, performance by any party hereunder shall not be deemed to be in Default, and all performance and other dates specified in this Agreement shall be extended, where delays or Defaults are due to: war; insurrection; strikes; lockouts; riots; floods; earthquakes; fires; casualties; acts of God; acts of the public enemy; epidemics; quarantine restrictions; freight embargoes; governmental restrictions or priority; litigation; unusually severe weather; acts or 372
9 omissions of the other party; or acts or failures to act of the City or any other public or governmental City or entity (other than the acts or failures to act of the City under this Agreement which shall not excuse performance by the City). An extension of time for any such cause shall be for the period of the enforced delay and shall commence to run from the time of the commencement of the cause (but in any event shall not exceed a cumulative total of one hundred twenty (120) days), if Notice by the party claiming such extension is sent to the other party within thirty (30) days of the commencement of the cause. Times of performance under this Agreement may also be extended in writing by the mutual agreement of City and RHCB.
RHCB expressly agrees that adverse changes in economic conditions, either of RHCB specifically or the economy generally, changes in market conditions or demand, and/or RHCB's inability to obtain financing or other lack of funding to complete the Project shall not constitute grounds of enforced delay pursuant to this Section 5. RHCB expressly assumes the risk of such adverse economic or market changes and/or inability to obtain financing, whether or not foreseeable as of the date of this Agreement.
c. Successors and Assigns. All of the terms, covenants and conditions of this Agreement shall be binding upon RHCB and its permitted successors and assigns. Whenever the term "RHCB" is used in this Agreement, such term shall include any other permitted successors and assigns as herein provided.
d. Relationship between City and RHCB It is hereby acknowledged that the relationship between City and RHCB is not that of a partnership or joint venture and that the City and RHCB shall not be deemed or construed for any purpose to be the agent of the other.
Accordingly, except as expressly provided herein or in the Attachments hereto, the City shall have no rights, powers, duties, or obligations with respect to the development, operation, maintenance or management of the Property or the Project. RHCB agrees to indemnify, hold harmless and defend the City from any claim made against the City arising from a claimed relationship of partnership or joint venture between the City and RHCB with respect to the development, operation, maintenance or management of the Property or the Project unless due to the gross negligence or willful misconduct of City.
e. City Approvals and Actions. Whenever a reference is made herein to an action or approval to be undertaken by the City, the City Manager of the City or his or her designee is authorized to act on behalf of the City unless specifically provided otherwise or the context should require otherwise.
f. Counterparts. This Agreement may be signed in multiple counterparts which, when signed by all parties, shall constitute a binding agreement. g. Titles and Captions. Titles and captions are for convenience of reference only and do not define, describe, or limit the scope or the intent of this Agreement or of any of its terms.
References to section numbers are to sections in this Agreement, unless expressly stated otherwise.
h. Interpretation. As used in this Agreement, masculine, feminine or neuter gender and the singular or plural number shall each be deemed to include the others where and when the context so dictates. The word "including" shall be construed as if followed by the words "without limitation." This Agreement shall be interpreted as though prepared jointly by all parties. 373
10 i. No Waiver. A waiver by any party of a breach of any of the covenants, conditions, or agreements under this Agreement to be performed by another party shall not be construed as a waiver of any succeeding breach of the same or other covenants, agreements, restrictions, or conditions of this Agreement. j. Modifications. Any alteration, change or modification of or to this Agreement, in order to become effective, shall be made in writing and in each instance signed on behalf of each party.
k. Severability. If any term, provision, condition or covenant of this Agreement or its application to any party or circumstances shall be held, to any extent, invalid or unenforceable, the remainder of this Agreement, or the application of the term, provision, condition or covenant to persons or circumstances other than those as to whom or which it is held invalid or unenforceable, shall not be affected, and shall be valid and enforceable to the fullest extent permitted by law.
l. Computation of Time. The time in which any act is to be done under this Agreement is computed by excluding the first day (such as the day escrow opens), and including the last day, unless the last day is a holiday or Saturday or Sunday, and then that day is also excluded. The term "holiday" shall mean all holidays as specified in Sections 6700 and 6701 of the California Government Code. If any act is to be done by a particular time during a day, that time shall be Pacific Time Zone time.
m. Legal Advice. Each party represents and warrants to the other the following: they have carefully read this Agreement, and in signing this Agreement, they do so with full knowledge of any right which they may have; they have received independent legal advice from their respective legal counsel as to the matters set forth in this Agreement, or have knowingly chosen not to consult legal counsel as to the matters set forth in this Agreement; and, they have freely signed this Agreement without any reliance upon any agreement, promise, statement or representation by or on behalf of the other party, or their respective agents, employees, or attorneys, except as specifically set forth in this Agreement, and without duress or coercion, whether economic or otherwise.
n. Time of Essence. Time is of the essence with respect to the performance by City and RHCB of each and every obligation and condition of this Agreement. o. Cooperation. Each party agrees to cooperate with the other parties in this transaction and, in that regard, shall execute any and all documents which may be reasonably necessary, helpful, or appropriate to carry out the purposes and intent of this Agreement including, but not limited to, releases or additional agreements. p. Conflicts of Interest. No member, official or employee of the City or RHCB shall have any personal interest, direct or indirect, in this Agreement, nor shall any such member, official or employee participate in any decision relating to the Agreement which affects his personal interests or the interests of any corporation, partnership or association in which he is directly or indirectly interested.
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11 q. RHCB's Indemnity. RHCB shall defend (with counsel reasonably acceptable to the City), indemnify, assume all responsibility for, and hold the City and its officers, employees, volunteers, agents and representatives, harmless from any and all Claims of any kind or nature relating to the subject matter of this Agreement or the implementation hereof and for any damages to property or injuries to persons, including accidental death (including reasonable attorneys fees and costs), which may be caused by any of RHCB's activities under this Agreement, whether such activities or performance thereof be by RHCB or by anyone directly or indirectly employed or contracted with by RHCB and whether such damage shall accrue or be discovered before or after termination of this Agreement. RHCB's indemnity obligations under this Section 618 shall not extend to Claims occasioned by the sole negligence or willful misconduct of City or its designated agents or employees. r. Nonliability of Officials and Employees of City and RHCB. No member, official or employee of City shall be personally liable to RHCB, or any successor in interest, in the event of any Default or breach by City or for any amount which may become due to RHCB or its successors, or on any obligations under the terms of this Agreement. No member, official or employee of RHCB shall be personally liable to City, or any successor in interest, in the event of any Default or breach by RHCB or for any amount which may become due to City or its successors, or on any obligations under the terms of this Agreement. City and RHCB each hereby waive and releases any claim it may have against the members, officials, or employees of the other with respect to any Default or breach by the other or for any amount which may become due to it or its successors, or on any obligations under the terms of this Agreement. City and RHCB each make such release with full knowledge of Civil Code Section 1542 and hereby waives any and all rights thereunder to the extent of this release, if such Section 1542 is applicable. Section 1542 of the Civil Code provides as follows:
"A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE
CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT
THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM
MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE
DEBTOR."
As such relates to this Section, City and RHCB each hereby waives and relinquishes all rights and benefits that it may have under Section 1542 of the California Civil Code. s. Assignment by City. City may assign or transfer any of its rights or obligations under this Agreement with the approval of RHCB, which approval shall not be unreasonably withheld; provided, however, that the City may assign or transfer any of its interests hereunder to the City, or any public or private entity controlled by the City at any time without the consent of RHCB
t. Assignment by RHCB. RHCB shall not transfer or assign this Agreement, the Note, the Deed of Trust, or its interest in the Property or the Project or any portion thereof without prior written approval by the City. Approval of any such transfer or assignment shall be at the sole discretion of the City. Notwithstanding anything to the contrary contained herein, City hereby expressly approves of a transfer of the Project to RHCB or an affiliate thereof following the expiration of the tax credit compliance period in accordance with the terms of a purchase option and/or right of first refusal. Further notwithstanding anything to the contrary 375
12 contained herein or in the Loan Documents, the City expressly approves the transfer of partnership interests in Owner as permitted under Owner’s Amended and Restated Partnership Agreement. u. Applicable Law. The laws of the State of California, without regard to conflict of laws principles, shall govern the interpretation and enforcement of this Agreement.
IN WITNESS WHEREOF, City and RHCB have executed this Agreement on the respective dates set forth below.
City:
City of Visalia
By: _________________________
Name: _______________________
Its: __________________________
Date:
Attest: _______________________
Chief Deputy City Clerk
Approved as to form:
___________________________
City Attorney
RHCB:
RH Community Builders L.P., a California limited partnership
By: WRBH LLC, a California limited liability company, its General Partner
___________________________
By: Wayne Rutledge, its Manager
By: AHBH LLC, a California limited liability company, its Co-Limited Partner
________________________
By: Brad Hardie, its Manager
By: Wayne and Rena Rutledge Revocable Trust, its Co-Limited Partner
__________________________
By: Wayne Rutledge, its Trustee
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13 Exhibit “A”
Legal Description of the Property
To be added.
377
14 Exhibit “B”
Project Budget
378
15 379
Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 22-0274 Agenda Date: 7/18/2022 Agenda #: 1.
Agenda Item Wording:
Upcoming City Council Meetings:
Monday, August 01, 2022, at 7:00 PM; Regular Meeting, City Hall, 707 W. Acequia Monday, August 15, 2022, at 7:00 PM; Regular Meeting, City Hall, 707 W. Acequia Visalia City Council Printed on 7/13/2022Page 1 of 1
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