Visalia City Council
June 5, 2023

PROFESSIONAL SERVICES AGREEMENT
College of the Sequoias Training Resource Center for Visalia Customized Training This Agreement, entered into as of July 1, 2023, by and between the City of Visalia, hereinafter referred to as the “CITY”, and College of the Sequoias Training Resource Center hereinafter referred to as the “TRC”.

W I T N E S S E T H
WHEREAS, CITY is committed to enhancing economic development opportunities and maintaining the CITY’s role as the regional commercial and industrial center for Tulare, Kings and southern Fresno Counties; and
WHEREAS, to help achieve economic growth for its citizens, CITY must retain, grow and attract “primary” industries, that is, industry that make products and services that are sold outside of the CITY thereby creating new wealth to be circulated within the CITY; and WHEREAS, a primary source of “primary” industries can be found in, or consider locating to, CITY’s Industrial Park, CITY should focus certain efforts on growing the Industrial Park; and WHEREAS, a consistent need among industrial sector employers in general and in the Industrial Park is a skilled workforce and as such regularly invest their time and resources into training their workforce; and WHEREAS, the TRC provides responsive, short-term, customized training solutions to employers across the region; and
WHEREAS, the TRC manages the largest Employment Training Panel (ETP) Multiple Employer Contract in the San Joaquin Valley which provides a valuable incentive to employers to help encourage training investments into their workforce; and
WHEREAS, the CITY realizes most job growth comes from the retention and expansion of local industries, the CITY is highly supportive of efforts to provide solutions to local employers’ needs; and WHEREAS, the CITY is authorized and empowered to employ consultants and specialists in the performance of its duties and functions; and
WHEREAS, the CITY has the desire to secure certain technical and professional services to assist in the preparation and completion of the items of work described in Section I below, and hereinafter referred to as the “PROJECT”; and
WHEREAS, the TRC represents it is qualified and willing to provide such services pursuant to terms and conditions of this Agreement.

NOW, THEREFORE, CITY and TRC agree as follows:

I. SERVICES TO BE PERFORMED BY THE TRC
A. Scope of Work: The TRC agrees to perform all work necessary to complete, in a manner satisfactory to the CITY, those tasks described below:
380
TRC - Visalia Customized Training

1. Locate a permanent training center for the term of the service contract in the Visalia Industrial Park (VIP) area

2. Provide Visalia industrial employers convenient and timely access to customized training solutions
i. Services could include allowing participating employers or workforce development and education partners to utilize the training center space to conduct skills assessment testing of hopeful VIP employees or VIP incumbent workers

3. Conduct at least 8 training sessions in the VIP area

4. Train or conduct skills assessments for at least 80 individuals either currently employed in the VIP or seeking employment in the VIP
i. At least 20 of these individuals should be trained or have skills assessments conducted pertaining to basic electrical skills, maintenance mechanic skills, programmable logic controllers (PLC), automation, or other in demand skills pertaining to manufacturing or maintenance mechanic occupations

5. Assist employers with more information regarding establishment of apprenticeships where feasible

6. Provide the CITY written progress reports in September, December, March and June of the contract term.

II. COORDINATION FROM CITY
A. CITY will regularly communicate any potentially applicable training requests to TRC staff B. CITY will assist in marketing the services of the TRC at the Industrial Park training center C. CITY will assist with outreach to local Visalia employers that could participate in organized trainings
III. TIME OF PERFORMANCE
The term of this Agreement shall commence on July 1, 2023 and expire on June 30, 2024, unless earlier terminated by the parties. The contract shall be for a twelve (12) month period. Additionally, this Agreement may be terminated for convenience. In the event of termination or expiration of this Agreement, CONTRACTOR shall transfer to CITY any funds and/or accounts receivable on hand attributable to the use of CITY funds.

IV. PERFORMANCE REVIEW
The CITY shall review the performance and fees of TRC in furnishing the services provided hereunder, and the compensation provisions hereof. The parties may agree to changes or amendments hereto, including, but not necessarily limited to, changes in compensation provisions, which changes or amendments shall be evidenced by written amendment authorized by specific action of the City Council. Nothing in this paragraph shall be deemed to prevent or inhibit more frequent review of performance, compensation, or other matters relating to this Agreement or otherwise inhibit the free and candid exchange of views between the parties hereto, to the end that the legal interests of the CITY shall best be served and TRC shall fairly be compensated for services rendered.

V. COMPENSATION
A. Total Compensation: For services performed pursuant to this Agreement, the CITY agrees to pay and the TRC agrees to accept, seventy-five thousand dollars ($75,000). 381
TRC - Visalia Customized Training

B. Payment of Compensation: The TRC shall be compensated quarterly per CITY’s receipt of an invoice in September, December, March and June of the contract term.

VI. AUTHORIZED REPRESENTATIVE
A. CITY: The Economic Development Manager or their designee shall represent the CITY in all matters pertaining to the services to be rendered under this Agreement, except where approval of the City Council of the City of Visalia is specifically required.

B. TRC: The TRC Executive Director or designee shall represent and act as principle for TRC in all matters pertaining to the services to be rendered by it under this Agreement.

VII. TERMINATION
The right to terminate this Agreement, with or without cause, may be exercised without prejudice to any other right or remedy to which the terminating party may be entitled at law or under this Agreement.

A. Termination By Either Party Without Cause: The CITY or TRC may terminate this Agreement at any time by giving written notice to the other of such termination and specifying the effective date thereof, at least fifteen (15) days before the effective date of such termination.

B. Termination of Agreement for Cause: The CITY may by written notice to the TRC specifying the effective date thereof, at least fifteen (15) days before the effective date of such termination, terminate the whole or any part of this Agreement in any of the following circumstances:

1. If the TRC fails to perform the services called for by this Agreement within time(s) specified herein or any extension thereof; or

2. If the TRC fails to make progress under this Agreement as to endanger performance of this Agreement in accordance with its terms, and does not correct such failure within a period of ten (10) days (or longer period as the CITY may authorize in writing) after receipt of notice from the CITY specifying such failure.

C. Post-Termination:

1. In the event the CITY terminates this Agreement with or without cause, the CITY may procure, upon such terms and such manner as it may determine appropriate, services similar to those terminated.

2. Except with respect to defaults of subcontractors, the TRC shall not be liable for any excess costs if the failure to perform this Agreement arises out of causes beyond the control and without the fault or negligence of the TRC. Such causes include, but are not limited to, acts of God or of the public enemy, floods, epidemics, quarantine restrictions, strikes, and unusually severe weather; but in the event the failure to perform is caused by the default of a subcontractors, the TRC shall not be liable for failure to perform, unless the services to be furnished by the subcontractors were obtainable from other sources in sufficient time and 382
TRC - Visalia Customized Training

within budgeted resources to permit the TRC to meet the required delivery schedule or other performance requirements.

3. Should the Agreement be terminated with or without cause, the TRC shall provide the CITY with all finished and unfinished documents, data, studies, services, drawings, maps, models, photographs, reports, etc., prepared by the TRC pursuant to this Agreement.

4. Upon termination, with or without cause, TRC will be compensated for the services satisfactorily completed to the date of termination according to compensation provisions contained herein. In no event, shall the total compensation paid TRC exceed the total compensation agreed to herein.

5. If, after notice of termination of this Agreement, as provided for in this article, it is determined for any reason that the TRC was not in default under the provisions of this article, then the rights and obligations of the parties shall be the same as if the Agreement was terminated without cause.

6. Termination of this Agreement shall not terminate any obligation to indemnify, to maintain and make available any records pertaining to the Agreement, to cooperate with any audit, to be subject to offset, or to make any reports of pretermination activities.

VIII. INTEREST OF OFFICIALS AND THE TRC
A. No officer, member, or employee of the CITY who exercises any functions or responsibilities in the review or approval of this Agreement shall:

1. Participate in any decision relating to this Agreement which effects his/her personal interest or the interest of any corporation, partnership, or association in which he/she has, directly or indirectly, any interest; or

2. Have any interest, direct or indirect, in this Agreement or the proceeds thereof during his/her tenure or for one year thereafter.

IX. NO PERSONNEL AGENCY OR COMMISSION
The TRC warrants, by execution of this Agreement, that no personnel agency has been employed or retained to solicit or secure this contract upon an agreement or understanding for a commission, percentage, brokerage or contingent fee, excepting bona fide established commercial or selling agencies maintained by the TRC for the purpose of securing business. For breach or violation of this warranty, the CITY shall have the right to annul this Agreement without liability or, in its discretion, to deduct from this Agreement price or consideration, or otherwise recover, the full amount of such fee, commission, percentage, brokerage fee, gift, or contingent fee.

X. SUBCONTRACTING
A. The TRC shall not subcontract or otherwise assign any portion of the work to be performed under this Agreement without the prior written approval of the CITY. 383
TRC - Visalia Customized Training

B. In no event shall the TRC subcontract work in excess of 50% of the contract amount, excluding specialized services. Specialized services are those items not ordinarily furnished by a TRC performing the particular type of project.

XI. INDEPENDENT CONTRACTOR
In the performance of the services herein provided for, the TRC shall be, and is, an independent contractor and is not an agent or employee of the CITY. The TRC has and shall retain the right to exercise full control and supervision of all persons assisting the TRC in the performance of said services hereunder. The TRC shall be solely responsible for all matters relating to the payment of its employees including compliance with social security and income tax withholding and all other regulations governing such matters.

XII. SPECIFICATIONS
All specifications, manuals, standards, etc., either attached to this Agreement or incorporated by reference, are binding as to the performance of the work specified in this Agreement unless they are changed by written amendment to this Agreement modified in writing to incorporate such changes.

XIII. DOCUMENTS/DATA
A. Ownership of Documents: All original papers and documents, produced as a result of this Agreement, shall become the property of the CITY. In addition, CITY shall be provided with access and use of any other papers and documents consistent with the purpose and scope of services covered by this Agreement. Any additional copies, not otherwise provided for herein, shall be the responsibility of the CITY.

Documents prepared by TRC pursuant to this Agreement, are not intended or represented to be suitable for reuse by CITY or others. Any use of the completed documents for other projects and any use of incomplete documents without the specific written authorization from TRC will be at CITY’s sole risk and without liability to TRC. Further, any and all liability arising out of changes made to TRC’s deliverables under this Agreement by CITY or persons other than TRC is waived as against TRC, and the CITY assumes full responsibility for such changes unless the CITY has given TRC prior notice and has received from TRC written consent for such changes.

B. Publication: No report, information, or other data given or prepared or assembled by the TRC pursuant to this Agreement, shall be made available to any individual or organization by the TRC without the prior written approval of the CITY. Notwithstanding the foregoing, however, the TRC shall not be required to protect or hold in confidence and confidential information which (1) is or becomes available to the public with the prior written consent of the CITY; (2) must be disclosed to comply with law; or (3) must be disclosed in connection with any legal proceedings.

C. Copyrights: The TRC shall be free to copyright material developed under this Agreement with the provision that the CITY be given a nonexclusive and irrevocable license to reproduce, publish or otherwise use, and to authorize others to use the material for government or public purposes.

XIV. INDEMNIFICATION AND INSURANCE
384
TRC - Visalia Customized Training

A. As respects acts, errors, or omissions in the performance of services, TRC agrees to indemnify and hold harmless CITY, its elected and appointed officers, employees, and CITY designated volunteers from and against any and all claims, demands, losses, defense costs, liability or consequential damages arising directly out of TRC’s negligent acts, errors or omissions in the performance of his/her services under the terms of this Agreement, except to the extent those arise out of the negligence of CITY.

B. CITY agrees to indemnify and hold harmless TRC, its officers, employees, and designated volunteers from and against any and all losses, defense costs, liability or consequential damages to the extent arising out of CITY’S negligent acts, errors or omissions in the performance of this Agreement.

C. As respects all acts or omissions which do not arise directly out of the performance of services, including but not limited to those acts or omissions normally covered by general and automobile liability insurance, TRC agrees to indemnify, defend (at CITY’s option), and hold harmless CITY, its elected and appointed officers, agents, employees, representatives, and volunteers from and against any and all claims, demands, defense costs, liability, or consequential damages of any kind or nature arising out of or in connection with TRC’s (or TRC’s subcontractors, if any) performance or failure to perform, under the terms of this Agreement; except to the extent those which arise out of the negligence of CITY.

D. Without limiting CITY’s right to indemnification, it is agreed that TRC shall secure prior to commencing any activities under this Agreement, and maintain during the term of this Agreement, insurance coverage as follows:

1. Workers’ compensation insurance as required by California statues.

2. Professional liability insurance coverage, in an amount not less than One Million Dollars ($1,000,000).

3. Comprehensive Automobile Liability coverage with a combined single limit of not less than One Million Dollars ($1,000,000) per occurrence. Such insurance shall include coverage for owned, hired, and non-owned automobiles and shall be provided by a business automobile policy.

E. CITY’S Risk Manager is hereby authorized to reduce the requirements set forth above in the event he/she determines that such reduction is in the CITY’S best interest.

F. Each insurance policy required by this Agreement shall contain the following clause:
“This insurance shall not be canceled, limited in scope or coverage, or nonrenewed until after thirty (30) days prior written notice has been given to the City Clerk, City of Visalia, 707 W. Acequia, Visalia, CA 93291.” G. Prior to commencing any work under this Agreement, TRC shall deliver to CITY insurance certificates confirming the existence of the insurance required by this Agreement, and including the applicable clauses referenced above. Within thirty (30) days of the execution date of this Agreement, TRC shall provide to CITY endorsements to the above-required 385
TRC - Visalia Customized Training

policies, which add to these policies the applicable clauses referenced above. Said endorsements shall be signed by an authorized representative of the insurance company and shall include the signatory’s company affiliation and title. Should it be deemed necessary by CITY, it shall be TRC’s responsibility to see that CITY receives documentation acceptable to CITY which sustains that the individual signing said endorsements is indeed authorized to do so by the insurance company. CITY has the right to demand, and to receive within a reasonable time period, copies of any insurance policies required under this Agreement.

H. In addition to any other remedies CITY may have if TRC fails to provide or maintain any insurance policies or policy endorsements to the extent and within the time herein required, CITY may, at its sole option:

1. Obtain such insurance and deduct and retain the amount of the premiums for such insurance from any sums due under the Agreement; or

2. Order TRC to stop work under this Agreement and/or withhold any payment(s) which become due to TRC hereunder until TRC demonstrates compliance with the requirements hereof; or

3. Terminate this Agreement.

Exercise of any of the above remedies, however, is an alternative to other remedies CITY may have and is not the exclusive remedy for TRC’s failure to maintain insurance or secure appropriate endorsements.

Nothing herein contained shall be construed as limiting in any way the extent to which TRC may be held responsible for payments of damages to persons or property resulting from TRC’s or its subcontractor’s performance of the work covered under this Agreement.

XV. NON-DISCRIMINATION
TRC and all subcontractors shall not discriminate against any employee or applicant for employment on the basis of race, color, national origin, or sex in the performance of this Agreement. The TRC shall carry out applicable requirements of 49 CFR part 26 in the award and administration of DOT-assisted contracts.

Failure by the contractor to carry out these requirements is a material breach of this Agreement, which may result in the termination of this Agreement.

XVI. MISCELLANEOUS PROVISIONS
A. Successors and Assigns: This Agreement shall be binding upon and shall inure to the benefit of any successors to or assigns of the parties.

B. Prohibition of Assignment: Neither the CITY nor TRC shall assign, delegate or transfer their rights and duties in this Agreement without the written consent of the other party.

C. Dispute/Governing Law: Any dispute not resolvable by informal arbitration between the parties to this Agreement shall be adjudicated in a Court of Law under the laws of the State of California.
386
TRC - Visalia Customized Training

D. Notices: Notice shall be sufficient hereunder if personally served upon the City Clerk of the CITY or an officer or principal of the TRC, or if sent via the United States Postal Service, postage prepaid, addressed as follows:

CITY OF VISALIA
220 N. Santa Fe St.

Visalia, CA 93292
Attention: City Clerk

COS TRAINING RESOURCE CENTER
4999 E. Bardsley Ave
Tulare, CA 93274
Attention: TRC Executive Director
E. Jurisdiction/Venue/Waiver Of Removal: This Agreement shall be administered and interpreted under the laws of the State of California. Jurisdiction of litigation arising from this Agreement shall be in that State. Any action brought to interpret or enforce this Agreement, or any of the terms or conditions hereof, shall be brought in Tulare County, California. The TRC 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 Agreement and each of the exhibits referenced herein, which are incorporated by reference, represents the entire understanding of the CITY and the TRC as to those matters contained herein. No prior oral or written understanding shall be of any force or effect with respect to those matters covered hereunder. This Agreement may not be modified or altered except in writing signed by the CITY and the TRC.

G. Conflict With Law: If any part of this Agreement is found to be in conflict with applicable laws, such part shall be inoperative, null and void insofar as it is in conflict with said law, but the remainder of the Agreement shall be in full force and effect.

H. Attorney’s Fees: In the event either party commences any action, arbitration or legal proceedings for the enforcement of this Agreement, the prevailing party, as determined by the court or arbitrator, shall be entitled to recovery of its attorney’s fees and court costs incurred in the action brought thereon.

I. Construction: This Agreement is the product of negotiation and compromise on the part of each party and the parties agree, notwithstanding Civil Code Section 1654, that in the event of uncertainty the language will not be construed against the party causing the uncertainty to exist.

J. Authority: Each signatory to this Agreement represents that it is authorized to enter into this Agreement and to bind the party to which its signature represents.

K. Headings: Section headings are provided for organizational purposes only and do not in any manner affect the scope or intent of the provisions thereunder. 387
TRC - Visalia Customized Training

CITY OF VISALIA TRC
__________________________________ __________________________________ City Manager Date Executive Director Date
Approved as to Form
__________________________________
City Attorney Date
__________________________________
Risk Manager Date
388
Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 23-0221 Agenda Date: 6/5/2023 Agenda #: 11.

Agenda Item Wording:

Authorize the City Manager to award Request for Bids (RFB) 22-23-47, an annual contract for Digester Cleaning at the Water Reclamation Facility (WRF) to Wastewater Solids Management Co. of Yachats, OR. for an annual not to exceed cost of $348,590 and appropriate an additional $101,590 from the Wastewater Fund.

Deadline for Action: None
Submitting Department: Public Works
Contact Name and Phone Number:

Wyndi Ferguson, Public Works Manager, [email protected], 713-4186 Nick Bartsch, Public Works Director, [email protected] <mailto:[email protected]>, 713 -4052
Department Recommendation:

Staff recommends that the City Council authorize the City Manager to award an annual contract for digester ceaning at the Water Reclamation Facility (WRF) to Wastewater Solids Management Co. of Yachats, OR. for an annual not to exceed cost of $348,590 and appropriate an additional $101,590 from the Wastewater Fund. This is a one (1) year contract that may be renewed for four (4) consecutive one (1) year periods upon mutually agreed upon terms.

Background Discussion:

Anaerobic digestion is a solids stabilization process commonly used at municipal wastewater treatment facilities. The primary function of anaerobic digestion is to convert the microbiological cells and other solids generated during the treatment process to a stable end-product. The solids from upstream processes typically are comprised of primary sludge, scum, fats, oils, and grease (FOG), and/or other solids and liquids that may enter the collections system (including grit). Grit is particularly concerning as the accumulation of settled grit and other inert solids within the digester tanks reduce the effective treatment and digester volume. Digester sludge has also seen a steady increase of disposable wipes and other non-disposable products. The wipes and plastic clump together with organic debris, forming large rag-balls within the digesters, clogging pumps, valves and pipes. By removing rags and grit from the digesters, the capacity of the tank is maintained, the costs associated with heating the tank are reduced, and the life of the pumps and other parts is increased.

The City of Visalia WRF currently has eight (8) digesters that need to be dewatered and cleaned of accumulated rags, grit and debris. This process should be completed every 4-5 years. The last time this work was performed was as a part of the Plant upgrade, which was completed in 2018. The eight digesters are made up of two (2) that are 44 feet in diameter, five (5) that are 62 feet in diameter, and one (1) that is 116 feet in diameter.

Visalia City Council Page 1 of 2 Printed on 6/2/2023
powered by Legistar™389
File #: 23-0221 Agenda Date: 6/5/2023 Agenda #: 11.

Staff conducted a competitive bid process (RFB 22-23-47) to identify and select a qualified firm to furnish all labor, equipment and materials required to remove the contents and clean designated digester(s) annually. Because the Plant needs to continue to operate while cleaning is performed, all 8 of the digesters cannot be taken out of service simultaneously. Due to the timing and process required to perform this work, it is estimated that two (2) digesters will be cleaned annually.

On April 27, 2023, two (2) bids were received by Purchasing. Bid prices were requested per digester, based on the size. The total bid amount was the determining factor for the award. The bid totals were:

No. Company Name & Location Bid Amount
1 Wastewater Solids Management, Yachats, OR $834,190
2 MP Environmental Services, Bakersfield, CA $1,684,680 The order by which the digesters will be cleaned has not yet been determined, so Staff is requesting an annual contract be awarded in the amount not to exceed $348,950, based on the bid price of the 116 foot digester and one (1) 62 foot digester. Should the contract be awarded and renewed for the four consecutive one 1-year periods, it is planned that all eight (8) digesters will be cleaned within that time.

Wastewater Solids Management has been awarded the contract for this work in prior years and are very capable and dependable, with an excellent performance history with the City. Therefore, it is staff’s recommendation that Wastewater Solids Management be awarded the annual contract in the amount not to exceed $348,590.

Fiscal Impact:

Funding for these services will be paid out of the Digester Cleaning & Equipment Repair Capital Improvement Project (CP9768) budgeted within the Wastewater Fund (431). The FY23/24 approved budget is $247,000, therefore staff is requesting an additional $101,590 be appropriated from the Wastewater Fund to cover the not to exceed amount of $348,590.

Recommended Motion (and Alternative Motions if expected):

I move to authorize the City Manager to award Request for Bids (RFB) 22-23-47, an annual contract for Digester Cleaning at the Water Reclamation Facility (WRF) to Wastewater Solids Management Co. of Yachats, OR. for an annual not to exceed cost of $348,590, and appropriate an additional $101,590 from the Wastewater Fund. This is a one (1) year contract that may be renewed for four (4) consecutive one (1) year periods upon mutually agreed upon terms.

Attachments:

RFB 22-23-47
RFB 22-23-47 Bid Results
Visalia City Council Page 2 of 2 Printed on 6/2/2023
powered by Legistar™390

CITY OF VISALIA
REQUEST FOR BID (“RFB”)
RFB NO. 22-23-47

ANNUAL CONTRACT FOR

DIGESTER CLEANING
BIDS DUE NO LATER THAN 2:00 PM ON THURSDAY, APRIL 27, 2023 The City of Visalia expressly reserves the right to modify, or withdraw from, the process initiated and described herein. No rights shall be vested in any party, individual or entity by virtue of its preparation to participate in, or its participation in, such process. The City expressly reserves the right to modify, for any reason, the schedule and any provision contained herein. The City reserves to itself the selection of winning respondent(s), if any, in the exercise of its sole discretion. No binding commitment shall arise on the part of the City to any respondent under this Request for Bid until and unless the parties sign documents of agreement that become effective in accordance with their terms. Responses to this RFB, however, shall be held firm by Respondent for at least ninety (90) days.

Advertisement Dates: March 30, 2023
April 6, 2023
391

TABLE OF CONTENTS
I. DEFINITIONS .......................................................................................................................................1 II. INTRODUCTION ..................................................................................................................................1 III. DEPARTMENT OF INDUSTRIAL RELATIONS REQUIREMENTS....................................................1 IV. INSTRUCTIONS...................................................................................................................................4 V. SCOPE OF SERVICES/PROJECT DESCRIPTION ............................................................................5 VI. PRE-BID AND CONTRACT MEETINGS .............................................................................................5 VII. BID OPENING AND CONFIDENTIALITY............................................................................................5 VIII. AWARD ................................................................................................................................................6 IX. PROTESTS/APPEALS.........................................................................................................................6 X. SPECIAL CONDITIONS.......................................................................................................................7 XI. GENERAL CONDITIONS.....................................................................................................................9 XII. POST AWARD RESPONSIBILITIES..................................................................................................12

EXHIBITS
A. BID FORM
B. CERTIFICATIONS, AFFIDAVITS, ASSURANCES, STATEMENTS, WAIVERS, AND QUESTIONNAIRES

WHICH MUST ACCOMPANY BID FORM
B-1. Bidder’s Statement on Previous Contracts subject to Equal Employment Opportunity Clause B-2. Equal Employment Opportunity Compliance Certificate B-3. Certificate of Non-Segregated Facilities
B-4. Non-Collusion Affidavit
B-5. Worker’s Compensation Insurance Certificate
B-6. Anti-Kickback Compliance Certificate
B-7. Americans with Disabilities Act Compliance Certificate B-8. Ownership Disclosure
B-9. Drug-Free Workplace Certificate
B-10. Iran Contracting Act Certification
C. SAMPLE PROJECT AGREEMENT WITH ATTACHMENTS
ATTACHMENT 1 - GENERAL CONTRACT PROVISIONS
ATTACHMENT 2 - INSURANCE REQUIREMENTS
D. ADDITIONAL ATTACHMENTS
D-1. LISTING OF CITY OBSERVED HOLIDAYS
D-2. STATE OF CALIFORNIA PREVAILING WAGE RATES
D-3. CITY OF VISALIA LABOR COMPLIANCE MANUAL
392
RFB 22-23-47

ANNUAL CONTRACT FOR DIGESTER CLEANING

I. DEFINITIONS
For the purposes of RFB NO. 22-23-47, 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", “Consultant”, “Contractor” and “Subrecipient” 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 offer in response to this Request for Bid.

5. “RFB” means Request for Bid No. 22-23-47.

II. INTRODUCTION
The City of Visalia Purchasing Division is soliciting Bids from qualified firms for an annual contract for digester cleaning at the City of Visalia Water Reclamation Facility (WRF). The WRF, located at 7579 Ave. 288 in Visalia, CA. currently has eight (8) digesters. Cleaning will be requested for one to two of the digesters annually over the five-year contract period. Awarded Contractor will be responsible for providing all services necessary to fulfill the requirements of this Invitation to Bid upon receipt of the City’s Notice to Proceed.

The initial contract term shall be for a twelve (12) month period and shall, at the City’s option and with the consent of the CONTRACTOR, be extended annually thereafter for four (4) consecutive one-year periods. Bids are being sought from contractors who have a proven record of experience in providing the services required by this Invitation to Bid.

Public Works Project: Under the requirements of Labor Code section 1782 passed by SB7 and in compliance with City of Visalia Ordinance 2014-13, this public works project is subject to State prevailing wages as indicated in the specifications. See Section III for additional Department of Industrial Relations Requirements which apply to this project.

Local Vendor Preference: In an effort to encourage local businesses to provide goods and services to the City, Council has enacted a local preference. The local preference will apply to any business that has had a business address within Tulare County for a minimum 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 days, from date notified, to match or beat the low bid. If there is more than one local vendor that is within the 5% range, the offer goes to the local vendor that is closest to the low bid.

III. DEPARTMENT OF INDUSTRIAL RELATIONS REQUIREMENTS, Public Works Contractor Registration Program and Project Labor Agreements
Notice is hereby given that work under this contract is considered a public works project contract and therefore, subject to DIR monitoring. All contractors and subcontractors bidding and performing work on Public Works Projects must be currently registered with the California Department of Industrial Relations (DIR). Awarded Contractor is required to furnish electronic payroll records for new projects to the Labor Commissioner.

No contract will be awarded unless that contractor and/or subcontractors are registered with the California Department of Industrial Relations (DIR). Bids by unregistered contractors may be rejected as nonresponsive.

A contractor or subcontractor shall not be qualified to bid on, be listed in a bid proposal, subject to the requirements of Section 4104 of the Public Contract Code or engage in the performance of any contract for public work, as defined in this chapter, unless currently registered and qualified to perform public work pursuant to Section 1725.5. It is not a violation of this section for an unregistered contractor to submit a bid that is authorized by Section 7029.1 of the Business and Professions Code or by Section 10164 or 20103.5 of the 393
RFB 22-23-47

ANNUAL CONTRACT FOR DIGESTER CLEANING

Public Contract Code, provided the contractor is registered to perform public work pursuant to Section 1725.5 at the time the contract is awarded.

If a project labor agreement (the term “project labor agreement” is defined in Public Contract Code 2500(b)(1) as a pre-hire collective bargaining agreement that establishes terms and conditions of employment for a specific construction project or projects and is an agreement described in Section 158(f) of Title 29 of the United States Code) is used, then it must comply with the taxpayer protection provisions set forth in Public Contract Code section 2500(a). City of Visalia has no ordinances requiring or prohibiting such agreements.

The following statements and requirements are to be included in all City of Visalia public work contracts that require the payment of prevailing wages in accordance with California Labor Code (CLC). This RFB document becomes a part of the public works contract for this project and therefore, the CLC contract language requirements are incorporated into the contract.
❑ As set forth in CLC section 1771.1(a), all contractors and subcontractors must be currently registered and qualified to perform public work pursuant to CLC section 1725.5 to be qualified to bid, be listed in a bid proposal, or perform any public work for the City of Visalia. Proof of registration for each contractor and subcontractor listed on the bid is required.
❑ As set forth is CLC section 1771.4 (a)(1), notice is given that this project is a public work, subject to compliance monitoring and enforcement by the Department of Industrial Relations. ❑ As set forth in CLC section 1771.4(a)(2), the prime contractor is required by the City of Visalia to post job site notices, as prescribed by regulation. Information on required workplace postings may be found on the Department of Labor website at: http://www.dir.ca.gov/wpnodb.html . ❑ The contractor and each subcontractor shall maintain all project records required under CLC for public works projects and preserve them for a minimum 3-year period to begin on the date a Notice of Completion is filed for the project. Please refer to the retention period required for any grant or specialized project funding. Some funding sources require an extended time period for records retention.
❑ In accordance with CLC section 1773.2, the contractor is required, by the City of Visalia, to post a copy of the determination of the Director of Labor Standards prevailing rate of per diem wages for each craft, classification, or type of worker needed to execute the contract at each job site. ❑ In accordance with labor code section 1776 and its enforcement (1771.4(a)(3)), for initial contracts awarded on or after April 1, 2015 each project contractor and subcontractor shall; o Maintain and furnish directly to the Labor Commissioner, bi-weekly, a certified copy of each weekly payroll as specified in section 1776 containing a statement of compliance with labor code sections 1771, 1811 and 1815, signed under penalty of perjury. o Make available or provide a certified copy of these payroll records and their supporting documentation within 10 days to all authorized parties upon written request and be subject to penalties for non-compliance as detailed in labor code section 1776. o Inform the City of Visalia of the location of the payroll records kept in compliance with labor code section 1776(g) and notify the City of Visalia within 5 working days of any change in their location.
❑ The City of Visalia will comply with any prevailing wage monitoring and enforcement activities required by the labor compliance programs of the Department of Industrial Relations including the withholding of contract payments in the amount of any underpayment of prevailing wage and applicable penalties as directed by the Department of Labor Standards Enforcement in accordance with CLC section 1727(a).

Any amount withheld will be released as directed by the Labor Commissioner upon receipt of a certified copy of a final order no longer subject to judicial review in accordance with CLC section 1742(f). 394
RFB 22-23-47

ANNUAL CONTRACT FOR DIGESTER CLEANING

❑ As set forth in labor code section 1775(b), the following subcontractor provisions shall be included in any contract executed between the contractor and a subcontractor for performance of work on this public work project:
o As set forth in CLC section 1775(b)(1), any contract executed between a contractor and a subcontractor for the performance of work on a City of Visalia public works project shall include a copy of the provisions of Labor Code sections 1771, 1776, 1777.5, 1813, and 1815. These labor code sections must be included within or as attachments to the contract. o As set forth in CLC section 1776, the subcontractor shall maintain and furnish directly to the Labor Commissioner, bi-weekly, a certified copy of each weekly payroll as specified in section 1776 containing a statement of compliance with labor code sections 1771, 1776, 1811 and 1815, signed under penalty of perjury.
o As set forth in CLC section 1775(b)(2), the contractor shall monitor the payment of the specified general prevailing rate of per diem wages by the subcontractor to the employees, by periodic review of the certified payroll records of the subcontractor. o As set forth in CLC section 1775(b)(3), upon becoming aware of the failure of the subcontractor to pay his or her workers the specified prevailing rate of wages, the contractor shall diligently take corrective action to halt or rectify the failure, including, but not limited to, retaining sufficient funds due the subcontractor for work performed on the public works project. o As set forth in CLC section 1775(b)(4), prior to making final payment to the subcontractor for work performed on the public works project, the contractor shall obtain an affidavit signed under penalty of perjury from the subcontractor that the subcontractor has paid the specified general prevailing rate of per diem wages to his or her employees on the public works project and any amounts due pursuant to Section 1813. Prior to the release of retention to the contractor, the COV will require a copy of the affidavit(s) completed by each listed subcontractor.
❑ In accordance with CLC section 1777.5(e), prior to commencing work on a contract for public work; every contractor shall submit contract award information to an applicable apprenticeship program that can supply apprentices to the site of the public work.
❑ Only apprentices, as defined in CLC section 3077, in training under apprenticeship standards approved by the Division of Apprenticeship Standards (DAP) and party to written apprentice agreements under CLC section 3070-3098 may be employed at the apprentice wage rate on public works. ❑ Unless exempted under CLC section 1777.5(j), a contractor working on a public works contract of $30,000 or more shall employ the number of apprentices or the ratio of apprentices to journeymen stipulated in the applicable apprenticeship standards (CLC 1777.5(n)). In no event shall the ratio be less than one hour of apprentice work for every five hours of journeyman work. ❑ The prime contractor is responsible for compliance with the requirements of CLC section 1777.5 for all apprenticeable occupations employed on the contract. As stated in 1777.5 (o), the apprenticeship requirement does not apply to contracts of general contractors or to contracts of specialty contractors not bidding for work through a general or prime contractor when the contract is less than thirty thousand dollars ($30,000).
❑ As stated in section 1777.7(e), the prime contractor will not be liable for any penalties assessed for violations of section 1777.5 if they have complied with the following requirements:
o The contract executed between the contractor and the subcontractor for the performance of work on the public works project shall include a copy of the provisions of section 1771, 1775, 1776, 1777.5, 1813 and 1815. These labor code sections must be included within or as attachments to the contract.
395
RFB 22-23-47

ANNUAL CONTRACT FOR DIGESTER CLEANING

o The contractor shall continually monitor a subcontractor’s use of apprentices required to be employed on the public works project pursuant to subdivision (d) of section 1777.5, including, but not limited to, periodic review of the certified payroll of the subcontractor. o Upon becoming aware of a failure of the subcontractor to employ the required number of apprentices, the contractor shall take corrective action, including , but not limited to, retaining funds due to the subcontractor for work performed on the public works project until the failure is corrected. o Prior to making a final payment to the subcontractor for work performed on the public works project, the contractor shall obtain a declaration signed under penalty of perjury from the subcontractor that the subcontractor has employed the required number of apprentices on the public works project. ❑ The prime contractor is required to provide a signed affidavit declaring their compliance with California Labor Code sections 1771 (prevailing wage) and 1777.5 (apprenticeship) for all workers employed on the contract before final payment will be made on the contract by the City of Visalia.

Contract inclusion and/or attachments: The following item is required to be included either in the body of, as attachments to, or addendums of all public work contracts:
❑ As set forth in CLC section 1773, the City of Visalia shall obtain the general prevailing rate of per diem wages and the general prevailing rate for holiday and overtime work in the locality in which the public work is to be performed for each craft, classification, or type of worker needed to execute the contract from the Director of Industrial Relations. This will include the apprenticeship prevailing wage for all apprenticeable trades. In accordance with labor code section 1773.2, this information is to be included in the contract itself.
10 days before the closing date of the bid, the project manager will review the prevailing wage rates included in any requests for bid proposals for updates and issue an addendum to notify interested bidders of any changes.

General prevailing wage determinations made by the director of industrial relations for journeyman and apprentices may be found at:
http://www.dir.ca.gov/OPRL/PWD/index.htm and
http://www.dir.ca.gov/OPRL/PWAppWage/PWAppWageStart.asp IV. 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 & Mailing Address
MARKED: WRF Digester Cleaning
RFB NO. 22-23-47

4. Submit each of the required Certifications, Affidavits, Statements and Questionnaires as 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 Vendor, 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 prevent misinterpretations, the Purchasing Division would prefer that all questions be sent by email to [email protected].

Questions regarding this RFB must be received no later than Thursday, April 20, 2023. 396
RFB 22-23-47

ANNUAL CONTRACT FOR DIGESTER CLEANING

V. SCOPE OF SERVICES/PROJECT DESCRIPTION
The City of Visalia WRF currently has eight (8) digesters. Five (5) of the digesters are 62 foot in diameter with a floor that has an 11-foot slope to center, two (2) are 44 foot in diameter with a floor that has a 4 to 5 foot slope to center, and one (1) that is 116 foot in diameter with a floor that has an 11 foot slope to center. The purpose of this RFB is to identify and select qualified firms to remove the contents and clean the designated digester(s) annually. The scope of work shall include, but not necessarily be limited to the work described herein.

The Contractor shall furnish all labor, equipment, and materials required to remove the contents and clean a designated digester that has been assigned by the City. The Contractor will be notified in advance as to which digester shall be cleaned and a mutually acceptable schedule will be negotiated to perform the services within a thirty (30) day timeframe. All safety practices shall be followed according to OSHA standards. Confined space entry will be strictly enforced. Contractor shall provide gas monitors, exhaust fans and safety harnesses, and any applicable equipment required for completion of the service.

The City shall lock out and tag out all associated equipment within the selected digester in order to safely empty and clean each digester. City staff shall lower the level in each digester to the maximum practical extent and open ventilation covers.

Dewatering process such as belt press or centrifuge may be used. The filtrate or centrate may be returned to the plant at a point designated by City staff at a rate not to exceed 500 gpm and must be free of trash and grit.

All associated centrate/filtrate piping shall be provided by the Contractor. Dewatered sludge will be stockpiled onsite at a location designated by the City. The Contractor will provide a complete washdown of all interior surfaces. The digester is to be left clean, dry, and empty.

The work shall be performed in a manner as to allow the continuous operation of the Facility. The Contractor shall be responsible for maintaining the work area in such a manner that City staff may continue to use the facility as necessary.

The Contractor shall be responsible to maintain a clean work site, to remove debris and dispose of it properly at their own expense. Upon completion and before making application for acceptance of the work, the Contractor shall clean the area of work and all ground occupied by their staff in connection with the work of all rubbish, temporary structures and equipment.

VI. PRE-BID AND CONTRACT MEETINGS

1. Two Mandatory Pre-Bid Meetings. Two (2) mandatory pre-Bid meetings will be held:

Tuesday, April 11, 2023 at 2:00 p.m.
and
Wednesday, April 12, 2023 at 10:00 a.m.
at the Water Reclamation Facility, 7579 Ave. 288, Visalia, CA. Attendance at one of these meetings is required to submit a Bid in response to this RFB. Information regarding the project will be provided at that time. It shall be the responsibility of the Contractor to have acquired full knowledge of the job site, scope of work and any problems or difficulties that may affect the work proposed.

2. Post Award Meeting. Subsequent to the award of contract, the Contractor shall meet with the Project Manager prior to the start of work to discuss any problems or questions that may arise.

Contractor shall contact the Project Manager within ten (10) days of the date of the Notice to Proceed to arrange this meeting.

City Project Manager: Wyndi Ferguson
Department: Public Works
397
RFB 22-23-47

ANNUAL CONTRACT FOR DIGESTER CLEANING

VII. BID OPENING AND CONFIDENTIALITY

1. Bid Opening. Bids shall be opened publicly in the presence of attendees, if any, on Thursday, April 27, 2023 at 2:00 p.m. at 707 W Acequia, Visalia CA, City Hall. The name of each Bidder and the amount of each Bid shall be open to public inspection at the Bid opening and after an award decision has been made. Other Bid information will not be available for public review during the evaluation phase.

2. Bid Confidentiality. The City favors full and open disclosure of all Bid records. The City will not expend public funds defending claims for access to, inspection of, or to be provided copies of any such records. By submitting a Bid, a Bidder agrees to indemnify and defend the City against all claims or actions brought against it to seek access to, or compel disclosure of, any records or documents in the City’s possession.

After the award, the City intends that its selection process will be open and public.

Respondents are advised that the California Public Records Act (“PRA”) provides that any person may inspect or be provided a copy of any identifiable public record or document that is not exempted from disclosure by the express provisions of the Act. The Federal Freedom of Information Act (“FOIA”) contains a similar provision. Each Bidder shall clearly identify any information within its Bid that it intends to ask the City to withhold as exempt under either the PRA or FOIA. Any information contained in a Bidder’s submission which the Bidder believe qualifies for exemption from public disclosure 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 contained in a Bidder’s Bid to this RFB as “Proprietary” or “Confidential” shall constitute a waiver of Bidder’s right to object to the release of such information upon request under either Act.

VIII. AWARD

1. Most Responsive, Responsible Bidder. A Contract (substantially similar to that attached hereto as Exhibit “C” with Attachments 1-2) shall be awarded with reasonable promptness by appropriate written notice. Award shall be made to the most responsive, responsible Bidder whose Proposal meets the requirements and criteria set forth in this RFB, price and other factors considered, and whose Bid is determined to result in the optimum economic advantage to the City. A responsible Bidder is one who has the capability, financial capacity and integrity to perform the contract. A responsive Bidder is one who commits to all of the material terms, for example, price, quantity, quality and delivery, of this RFB. Contractor must return a signed copy of the contract provided by the City with 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 item or items in the Bid; to waive informalities, technical defects, and minor irregularities in Bids received; and to select the Bid(s) deemed most advantageous to the City.

IX. PROTESTS/APPEALS
Because it is essential that Bidders have confidence in the procurement procedures for soliciting 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 actual Bidder who is aggrieved in connection with this RFB or award of a contract hereunder may protest to the City of Visalia Purchasing Division in writing within five (5) working days after such aggrieved Bidder knows, should have reasonably known, or could reasonably be expected to know of the facts giving rise thereto; and

2. Should identify only the areas regarding bid contradictions, procurement errors, quotation rating discrepancies, legality of procurement context, conflict of interest in the rating process and inappropriate or unfair competitive procurement grievance regarding the Bid process. 398
RFB 22-23-47

ANNUAL CONTRACT FOR DIGESTER CLEANING

3. The City’s Purchasing Division shall have the authority to settle and resolve each protest. The resolution will be provided to Bidder in writing within five (5) working days of receipt 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 City’s “Purchasing and Contract Procedures” which is available through City’s Purchasing Division.

X. SPECIAL CONDITIONS

1. Project Administrative Issues
a. Complete Project. The successful Bidder shall be responsible for providing all materials, labor, equipment and services necessary to fulfill the requirements of this RFB.
b. Quantities/Change Orders. The City reserves and shall have the right to make such changes to the work as may be necessary and desirable to complete the work originally intended in an acceptable manner. Unless otherwise specified herein, the Project Manager shall be and is hereby authorized to make such changes, in the work as may increase or decrease the originally awarded contract quantities and/or total contract cost. The Contract Price, or the amount due the Contractor 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 executed by the Contractor, the Contractor shall submit a written protest to the Project Manager within 15 days after the receipt of the approved contract change order and the procedures outlined in Section 4-1.03 of the Standard Specifications apply.

If a requested change order is sent back to the Contractor for revisions, the Contractor has 15 (fifteen) calendar days to resubmit.

Changes shall not invalidate the contract nor release the surety, and the Contractor agrees to accept payment for such changes as if the altered work had been a part of the original contract. These changes which are for work within the general scope of the contract shall be covered by Change Orders issued by the City. Change orders for altered work shall include extensions of contract time where, in the Project Manager’s opinion, such extensions are commensurate with the amount and difficulty of added work.

Excessive altered work shall be covered by supplemental agreement that is subject to funding agency approval as applicable. If the City and the Contractor are unable to agree on a unit adjustment for any contract item that requires a supplemental agreement, the City reserves the 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 work is done. The Project 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 immediately, the Project Manager may authorize 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 Project Manager prior to the Extra Work being completed or the Change Order Committee shall approve an increase in a Change Order issued 399
RFB 22-23-47

ANNUAL CONTRACT FOR DIGESTER CLEANING

after the Extra Work is completed. No additional payment is due for unauthorized Extra Work.

If the Project 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 documentation required for a Change Order within forty-five (45) days of completing the Extra Work. The Project Manager will submit a Change Order request for review and approval by the Change Order Committee. If the Contractor does not submit any documentation within 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 and dispose of all structures, debris or other obstructions of any character required for completion of the project. Any temporarily removed or relocated items shall be replaced. f. Clean Up. Prior to acceptance and final payment, Contractor shall clean up the site of work, and any areas occupied by Contractor in connection with the project.

2. City-Contractor Relations
a. Project Manager’s Responsibility and Authority. City will designate a Project Manager.

All work shall be done under the general supervision of such Project Manager or his or her designee(s). The Project Manager shall decide issues of quality and acceptability of materials, work performance, rate of progress of work, interpretation of drawings and specifications, and all questions related to fulfillment 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 over, the construction means, methods, techniques, sequences, procedures and safety precautions or programs 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, but not limited to, sewers, water service, drains and culverts, underground utilities and the like.
(2) USA Notification. Contractor shall notify underground service alert (“USA) of times and locations of proposed excavations.
i. Contractor shall notify owners of and be responsible for damage to utilities and substructures.
ii. If damage occurs to an unknown utility, Contractor 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 must provide 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 loading, hauling and trucking trades.
(2) Qualification. Contractor shall ensure that each employee who works on this project is qualified to perform their assigned duty in a safe manner. 400
RFB 22-23-47

ANNUAL CONTRACT FOR DIGESTER CLEANING

f. Control of Materials:
(1) Source of Supply and Quality of Materials Guarantee. All materials, parts and equipment supplied by the Contractor shall be new and of a quality equal to that specified. Materials which become unfit for use shall not be used for the project.
(2) Equivalent Materials. Trade names or manufacturer’s catalog information, where used, are a means of indicating kind, type, design, style, finish, durability or quality desired and are not intended to exclude or omit the products of any responsible manufacturer, if such products are equal in every respect to those specified. The burden of proof of compliance with the specifications is the responsibility of Contractor. 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, installed, connected, erected, used, cleaned and conditioned as directed by the manufacturer.
g. Storage of Materials. Materials shall be stored to ensure the preservation of their quality and fitness for the project.
h. Materials and Shop Drawing Submittals. If applicable, Contractor shall submit to Project Manager for approval, two (2) copies of the materials list and detailed dimensional shop drawings covering all Contractor-furnished items of equipment. Prior approval by Project Manager is required. Such approval shall not relieve the Contractor from the responsibility of deviation from the Contract unless Contractor has, in writing, called to the attention of the Project Manager such deviations.

3. Legal Responsibilities. It is the responsibility of Contractor to comply with all local, state, and federal laws and regulations which apply to this project. This includes, but is not limited to, compliance with Uniform Building, Plumbing, Mechanical, Electric, and Fire Codes. Contractor shall provide a safe working environment in compliance with the Occupational Safety and Health Act, and California Health and Safety Codes. Additionally, Contractor shall secure all necessary permits, licenses, and similar requirements to carry out the project. Contractor shall comply with all applicable labor laws and ensure against discrimination.

XI. GENERAL CONDITIONS

1. It is the policy of the City to provide equal opportunity to all candidates when selecting 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, religious creed, color, national origin, ancestry, physical or mental disability, medical condition, genetic information, marital status, gender, gender identity or expression, age, 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 disability, be excluded from participating in, be denied the benefits of, or otherwise be subjected to discrimination under any program or activity that receives or benefits from Federal financial assistance.

Bidder shall provide to the City a list of all instances within the last ten (10) years where a complaint was filed or pending against Bidder in a legal or administrative proceeding alleging that Bidder discriminated against its employees, subcontractors, vendors or suppliers. A description of the status or resolution of that complaint, including any remedial action taken is required.
401
RFB 22-23-47

ANNUAL CONTRACT FOR DIGESTER CLEANING

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, to 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, telephonic, electronic and facsimile Bids and withdrawal requests will not be accepted.

7. Prices submitted are considered accurate for a period of ninety (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 straightforward, concise manner. Information provided 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 resulting from the RFB will be jointly administered by the City’s Purchasing Division, and the Department requesting Bids.

13. Prior to conducting business 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 maintain all personnel files and payroll records for employees used to implement the proposed contract.

16. Bidder shall withhold, pay and report all taxes 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 Charter, all other things being equal, tie Bids shall be awarded to a local merchant to the extent quality and prices are equal. If neither is a local vendor, the Bid shall be awarded by the flip of a coin by the Purchasing Division in the presence of at least one witness.

18. The City may make such investigation of the Bidder and information in the Bid as it determines necessary. This may include the collection of criminal history information, contractual and business associations and practices, employment histories and reputation.

19. All California agencies may purchase off 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, Assurances, Statements and Questionnaires which are attached in Exhibit “B”.
402
RFB 22-23-47

ANNUAL CONTRACT FOR DIGESTER CLEANING

21. The quantities given on the Bid Proposal form and any related contract documents are approximate only. They are given as a basis for comparison of Bids. The City of Visalia does not, expressly or impliedly agree that the actual amount of work will correspond therewith but reserves the right to increase or decrease the amount 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, specifications, plans, and other contract documents, and by any other means as they believe necessary, as to the actual physical conditions, requirements, and difficulties under which the project must be performed. The submission of a Bid shall be conclusive evidence that the Bidder has investigated, and is satisfied as to the conditions encountered, as 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 allowance shall subsequently 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 City reserves the right to award to the contract based on the lowest combination or combinations of Proposal items and alternate proposed items.

24. No mention shall be made in the Proposal of sales tax, 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 work by any firm, individual, partnership, corporation 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, corporation or combination thereof is interested in more than one Proposal for the work contemplated will cause the rejection of all Proposals in which such individual, firm, partnership, corporation or combination thereof is interested. A Contractor who is not submitting a Bid as a Prime Contractor may submit any number of sub-Bids to competing Prime Contractors.

26. The City of Visalia is not liable for any costs incurred by Bidder in responding to this Request for Bid.

27. The annual contract resulting from this invitation to bid will be administered by the Public Works Department. However, the cities Purchasing Division shall be the final judge concerning issues or matters related to contract interpretation or problems regarding the terms, conditions or scope of the contract.

28. The initial contract term shall be for a twelve (12) month period and shall, at the City’s option and with the consent of the CONTRACTOR, be extended annually thereafter for four (4) consecutive one-year periods. Contract shall begin no later than 15 days from the receipt of annual contract.

29. All prices quoted in response to this Invitation to Bid shall be firm and fixed for twelve (12) months from the annual anniversary date of the agreement. In order to protect the interests of the City and to give the vendor a reasonable basis for bidding, a price adjustment feature is hereby incorporated into the specifications. Prices bid by vendor may be adjusted annually at time of contract renewal and upon mutual agreement of the parties to the contract to allow for price increases or decreases for labor and benefit rates, supplies and materials.

It will be the responsibility of the contractor to request a price adjustment and to provide all documentation necessary. The request for price adjustment must be submitted in writing to the Project Manager according to the following timeframe: At least thirty (30) calendar days prior to the annual anniversary date of the agreement but not more than ninety (90) days prior to the annual anniversary date. Requests filed outside of this time-period will not be considered.

The unit prices for the ensuing contracts shall be based on the movement of the unadjusted figures of the U.S. Bureau of Labor Statistics Consumer Price Index (CPI) for All Urban 403
RFB 22-23-47

ANNUAL CONTRACT FOR DIGESTER CLEANING

Consumers (CPI-U U.S. City Average, All Items). The contract unit prices may be changed in an amount equal to the percentage of movement for the most recent twelve-month period. In no instance shall the price increase exceed 5%. The contract unit price changes as a result of this formula shall be binding on the contractor for the subsequent contract year. The adjustment of the unit bid price shall not be retroactive and shall apply only to changes incurred after approval.

30. This contract may be terminated without cause by the City, in whole or in part, by giving the Contractor fifteen (15) days written notice of the intent to terminate whenever the City determines that termination is in the best interest of the City.

If the Contractor shall fail to provide services or perform satisfactorily the work required by the terms and conditions of the contract, or materially breaches any of its obligations under this agreement the City may terminate the contract, in whole or in part by written notice.

Termination shall take effect ten (10) calendar days after the date of mailing said termination notice.

Any assignment, subletting or transfer of the interest of the contractor, either in whole or in part, without the written consent of the City shall be cause for the City to immediately terminate the agreement for default.

Notwithstanding any other provisions of this agreement, this agreement may be terminated by the City upon a single violation of this agreement.

XII. 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 Responsibilities. Upon execution of the Agreement between the City and the Contractor, the Contractor shall immediately report all changes in its Articles of Incorporation, By-Laws, or Tax-Exempt status to the City.

3. Insurance. Contractor shall obtain and maintain the minimum insurance coverage outlined Exhibit “C”, Attachment 2. Contractor shall provide evidence of such insurance to City’s Purchasing Division prior to commencement of work.

Upon determination by the City that a contract has been entered and Contractor has provided all of the information that it is required to provide pursuant to this RFB, City will issue, in writing, a notice to proceed on the project to Contractor.
404
RFB 22-23-47

ANNUAL CONTRACT FOR DIGESTER CLEANING

EXHIBIT “A”

BID FORM
RFB NO. 22-23-47

ANNUAL CONTRACT FOR DIGESTER CLEANING

AT VISALIA WATER RECLAMATION FACILITY
TO: THE CITY OF VISALIA PURCHASING DIVISION:

In compliance with the City’s Notice Inviting Sealed Bids No. 22-23-47 dated: __________, the undersigned BIDDER hereby proposes to furnish all materials, equipment, tools, labor appurtenances and incidentals required for the above stated project as set 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 this bid is based upon careful examination of the work site, Instructions to BIDDERs, and the contract requirements. If this bid is accepted for award, BIDDER agrees to enter into a contract with CITY at the unit and/or lump sum prices set forth in the following Bid Schedule.

BIDDER understands that a bid is required for the entire work and that final compensation under the contract will be based upon the actual quantities of work satisfactorily completed. It is agreed that all prices bid include all appurtenant expenses, taxes, royalties and fees. All bids will be checked for accuracy. In the case of discrepancies in amounts bid, unit prices shall govern over extended amounts.

BIDDER hereby agrees to execute a contract within ten (10) working days, or such further time as may be allowed in writing by the Purchasing Division, after receiving notification of the acceptance of this Bid, and it is hereby mutually understood and agreed that in case the BIDDER does not, said Purchasing Division may proceed to award the contract to others.

BIDDER agrees to commence the work on the start date agreed between BIDDER and Project Manager, only after the contract is fully executed and Notice to Proceed has been issued.

BIDDER further declares that he/she has not either directly or indirectly entered into any agreement, participated in any collusion, or otherwise taken any action in restraint of free competitive bidding in connection with said bid.

BIDDER understands that quantities given on the Bid Proposal form and any related contract documents are estimates only. They are given as a basis for comparison of Bids. The City of Visalia does not, expressly or impliedly agree that the actual amount of work will correspond therewith and reserves the right to increase or decrease the amount of any portion of work, or to omit portion of the work, as the City deems necessary or advisable, at the prices Bid.

BIDDER has read and hereby agrees to the conditions stated in this proposal by affixing his/her signature on the Bid Form.
405
RFB 22-23-47

ANNUAL CONTRACT FOR DIGESTER CLEANING

(1) __________________________________________________________________________________________ Bidding Firm
(2) __________________________________________________________________________________________ Corporation, Partner, Joint Venture
(3) __________________________________________________________________________________________ Business Address City State Zip Code
__________________________________________________________________________________________ Telephone Number Fax Number
__________________________________________________________________________________________ E-mail 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 individual, enter name here in style used in business; if a joint venture, exact name of entities joining in the venture; if a partnership, the correct trade 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 incorporation. If BIDDER 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 and notices regarding the Bid Proposal, and any contract awarded thereunder, are to be addressed.
(4) If BIDDER is a joint venture, signature must be by 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 corporation by an authorized officer or employee; if a partnership, by a general partner; if a corporation, by an authorized officer or employee. The title of the person signing must appear after his/her signature. Where BIDDER is a partnership or corporation, the names of all other general partners, or the president or secretary of the corporation and their business addresses must be shown below.

DESCRIPTION: Digester Cleaning at
the Visalia Water Reclamation Facility
as specified in RFB 22-23-47

QUANTITY UNIT PRICE
(includes all taxes, fees,
royalties, and expenses)

EXTENDED
AMOUNT
44 ft Diameter Digester 2 $ ____________ ea $ ________________ 62 ft Diameter Digester 5 $ ____________ ea $ ________________ 116 ft Diameter Digester 1 $ ____________ ea $ ________________ TOTAL COST $ ________________
406
RFB 22-23-47

ANNUAL CONTRACT FOR DIGESTER CLEANING

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 CERTIFICATE # __________________________________ A City Business Tax Certificate (license) is not required to submit a bid; however, vendor is required to obtain a certificate prior to commencement of work. Contact the Business Tax Division with questions at (559) 713-4326.

CONTRACTOR’S REFERENCES:

The following are the names, addresses, and telephone numbers for at least three (3) agencies for which BIDDER has performed work similar in size and scope within the past two (2) years.

1. NAME OF AGENCY:___________________________________________CONTACT PERSON:__________________ AGENCY ADDRESS:__________________________________________PHONE #:_________________________

2. NAME OF AGENCY:_________________________________________CONTACT PERSON:____________________ AGENCY ADDRESS:_________________________________________________PHONE #:_________________________

3. NAME OF AGENCY:_________________________________________CONTACT PERSON:_____________________ AGENCY ADDRESS:________________________________________________PHONE #:___________________________

DESIGNATION OF SURETIES
The following are the names, addresses, and telephone numbers for all brokers and sureties from whom BIDDER intends to procure insurance.

1. COMPANY NAME:_______________________________________________TYPE OF INSURANCE:_______________________ ADDRESS:_______________________________________________________TELEPHONE# _____________________________

2. COMPANY NAME:_______________________________________________TYPE OF INSURANCE:_______________________ ADDRESS:_____________________________________________________TELEPHONE# _______________________________

3. COMPANY NAME:_______________________________________________TYPE OF INSURANCE:_______________________ ADDRESS:_____________________________________________________TELEPHONE# _______________________________ 407
RFB 22-23-47

ANNUAL CONTRACT FOR DIGESTER CLEANING

SUBCONTRACTORS
The undersigned hereby designates below for the project, opposite various portions of the work, the names and locations of the places of business of each subcontractor who will perform work or labor in an amount in excess of one-half of one percent (1/2 of 1%) of the of the total bid. All work not listed below shall be performed by the undersigned BIDDER. It is understood that the BIDDER, if awarded the contract, shall not substitute any subcontractor 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:

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.
408
RFB 22-23-47

ANNUAL CONTRACT FOR DIGESTER CLEANING

EXHIBIT “B-1”
BIDDER’S STATEMENT ON PREVIOUS CONTRACTS

SUBJECT TO EQUAL EMPLOYMENT OPPORTUNITY CLAUSE
(EXECUTIVE ORDER 11246)
The BIDDER shall complete the following statement by checking the appropriate blanks:

The BIDDER has_____ has not _____ participated in a previous contract subject to the Equal Employment Opportunity Clause prescribed by Executive Order 11246, as amended, of September 24, 1965.

The BIDDER has _____ has not _____ submitted all compliance reports in connection with any such contract due under the applicable filing requirements; and that representations indicating submission of required compliance reports signed by proposed subBIDDERs will be awarded prior to award of subcontracts.

If the BIDDER has participated 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 compliance report on Standard Form 100, “Employee Information Report EEO-I” prior 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:
409
RFB 22-23-47

ANNUAL CONTRACT FOR DIGESTER CLEANING

EXHIBIT “B-2”

EQUAL EMPLOYMENT OPPORTUNITY COMPLIANCE CERTIFICATE
(EXECUTIVE ORDER 11246)
Equal Opportunity Clause
Unless exempted by rules, regulations or orders of the Secretary of Labor issued pursuant to Executive Orders 10925, 11114 or Section 204 of Executive 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 discriminate against any employee or applicant for employment because of race, color, religion, gender, national origin or political affiliation. The BIDDER will take affirmative action to ensure that applicants are employed, and that employees are treated during employment, without regard to their race, color, religion, gender, national origin or political 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 forms of compensation, and selection for training, including apprenticeship. The BIDDER agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided by the contracting officer setting forth the provisions of this nondiscrimination clause.

2. The BIDDER will, in all solicitations or advertisements for employees, placed by or on behalf of the BIDDER, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, gender, national origin or political affiliation.

3. The BIDDER will send to each labor union or representative of workers with which he has a collective bargaining agreement or other contract or understanding, a notice to be provided by the agency contracting officer, advising the labor union or the workers’ representative of the BIDDER’s commitments under Section 202 of Executive 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 provisions of Executive Order 11246 of September 24, 1965, and the rules, regulations and relevancy orders of the Secretary of Labor.

5. The BIDDER will furnish all information and reports required by Executive Order 11246 of September 24, 1965, and by the rules, regulations and relevant orders of the Secretary of Labor, or pursuant thereto, and will permit access to his books, records and accounts by the contracting agency and the Secretary of Labor for purposes of investigation to ascertain compliance with such rules, regulations and orders.

6. In the event of the BIDDER’s non-compliance with the non-discrimination clauses of this subcontract or with any of such rules, regulations or orders, this subcontract may be canceled, terminated or suspended, in whole, or in part and the BIDDER may be declared ineligible for further government contracts in accordance with the procedures authorized in accordance with Executive Order 11246 of September 24, 1965, and such other sanctions 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 will include the provisions of Paragraphs (1) through (7) in every subcontract or purchase order unless exempted by rules, regulations or orders of the Secretary of Labor issued pursuant to Section 204 of Executive Order 11246 of September 24, 1965, so that such 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 threatened with litigation with a SUBBIDDER or vendor as a result of such direction by the contracting agency, the BIDDER may request the United States to enter into such litigation 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:
410
RFB 22-23-47

ANNUAL CONTRACT FOR DIGESTER CLEANING

EXHIBIT “B-3”

CERTIFICATE OF NONSEGREGATED FACILITIES
(BIDDERS/SUBCONTRACTORS)

1. “Segregated facilities,” as used in this provision, means any waiting rooms, work areas, rest rooms and wash rooms, restaurants and other eating areas, time clocks, locker rooms and other storage or dressing areas, parking lots, drinking fountains, recreation or entertainment areas, transportation, and housing facilities provided for employees, that are segregated by explicit directive or are in fact segregated on the basis of race, color, religion, or national origin, because of habit, local custom, or otherwise.

2. By the submission of a bid, the BIDDER certifies that it does not and will not maintain or provide 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 services at any location under its control where segregated facilities are maintained.

The BIDDER agrees that a breach of this certification is a violation of the Equal Opportunity clause in the contract.

3. By submission of the bid, the BIDDER further agrees that (except where it has obtained identical 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 before the award of a subcontract under which the SUBCONTRACTOR will be subject to the equal Opportunity clause. The certification may be submitted either for each SUBCONTRACTOR 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:___________________________ Signing Official (Print or Type) :____________________________Title of Signing Official:_________________ Company Seal:
411
RFB 22-23-47

ANNUAL CONTRACT FOR DIGESTER CLEANING

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 the interest of, or on behalf of, any undisclosed person, partnership, company, association, organization, or corporation; that the Bid is genuine and 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 directly or indirectly colluded, conspired, connived, or agreed with any BIDDER or anyone else to put in a sham Bid, or that anyone shall refrain from Bidding; that the BIDDER has not in any manner, directly or indirectly, sought by agreement, communication, or conference with anyone to fix the Bid price of the BIDDER or any other BIDDER, or to fix any overhead, profit, or cost element 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 information or data relative thereto, or paid, and will not pay, any fee to any corporation, partnership, company association, organization, bid depository, or to any member or agent thereof 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/her/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 paragraph 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. 412
RFB 22-23-47

ANNUAL CONTRACT FOR DIGESTER CLEANING

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:
413
RFB 22-23-47

ANNUAL CONTRACT FOR DIGESTER CLEANING

EXHIBIT “B-6”

CERTIFICATION OF ANTI-KICKBACK COMPLIANCE CERTIFICATE
(48 Stat. 948; 62 Stat. 740; 63 Stat. 108; Title 18 U.S.C. § 8741; and 40 U.S.C. (c)) By submission of a Bid, the BIDDER certifies that neither it nor any of its employees has performed or participated in any prohibited actions, as defined in that provision, relating to the award of the Contract. By commencing performance of the Contract work, the selected BIDDER certifies to Anti-Kickback Compliance.

Company: ______________________________________________ Business Address: ______________________________________________ Signature: ______________________________________________ Name of Signing Official: ______________________________________________ Title of Signing Official: ______________________________________________ Date: ______________________________________________
Company Seal:
414
RFB 22-23-47

ANNUAL CONTRACT FOR DIGESTER CLEANING

EXHIBIT “B-7”

AMERICANS WITH DISABILITIES ACT COMPLIANCE CERTIFICATE
To Accompany Bid
By submission of a bid, the BIDDER certifies it will comply with the Americans with Disabilities Act, 42 U.S.C., 12101 et. seq., and will maintain compliance throughout the life of this Contract. By commencing performance of the Contract work, the selected BIDDER certifies to the Americans with Disabilities Act compliance.

Company: ______________________________________________ Business Address: ______________________________________________ Signature: ______________________________________________ Name of Signing Official: ______________________________________________ Title of Signing Official: ______________________________________________ Date: ______________________________________________
Company Seal:
415
RFB 22-23-47

ANNUAL CONTRACT FOR DIGESTER CLEANING

EXHIBIT “B-8”
To Accompany Bid

CITY OF VISALIA
Ownership Disclosure for Contractors and Consultants
To Accompany Proposal
NAMES OF PRINCIPALS, PARTNERS, AND/OR TRUSTEES:

Firm Name:_______________________________
Firm Address:____________________________
List the names of all principals, partners, and/or trustees. For corporations provide names of officers, directors and all stockholders owning more than 10% equity interest in corporation:

Submitted by: Name ________________________________________________________ Date ________________________________________________________ 416
RFB 22-23-47

ANNUAL CONTRACT FOR DIGESTER CLEANING

EXHIBIT “B-9”
To Accompany Bid

STATE OF CALIFORNIA

DRUG-FREE WORKPLACE CERTIFICATION
STD.21 (REV.12-93)

CERTIFICATION
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 AND TITLE 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 statement notifying employees that unlawful manufacture, distribution, dispensation, possession, or use of a controlled substance is prohibited and specifying actions to be taken against 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 proposed 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 of the contractor or grantee, from and after the “Date Executed” 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 agency without requiring the contractor or grantee to provide a new and individual certificate for each contract or grant. If the contractor or grantee elects to fill in the blank date, then the terms and conditions of this certificate shall have the same force, meaning effect and enforceability as if a certificate were separately, specifically, and individually provided for each contract or grant between the contractor or grantee and this state agency.
417
RFB 22-23-47

ANNUAL CONTRACT FOR DIGESTER CLEANING

EXHIBIT “B-10”
To Accompany Bid

IRAN CONTRACTING ACT CERTIFICATION
(Public Contract Code Section 2200 et seq.)
As required by California Public Contract Code Section 2204, the Contractor certifies subject to penalty for perjury that the option checked below relating to the Contractor’s status in regard to the Iran Contracting Act of 2010 (Public Contract Code Section 2200 et seq.) is true and correct:
⃝ The Contractor is not:
(1) Identified on the current list of persons and entities engaged in investment activities in Iran prepared by the California Department of General Services in accordance with subdivision (b) of Public Contract Code Section 2203; or
(2) A financial institution that extends, for 45 days or more, credit in the amount of $20,000,000 or more to any other person or entity identified on the current list of persons and entities engaging in investment activities in Iran prepared by the California Department of General Services in accordance with subdivision (b) of Public Contract Code Section 2203, if that person or entity uses or will use the credit to provide goods or services in the energy sector in Iran. ⃝ The City has exempted the Contractor from the requirements of the Iran Contracting Act of 2010 after making a public finding that, absent the exemption, the City will be unable to obtain the goods and/or services to be provided pursuant to the Contract. ⃝ The amount of the Contract payable to the Contractor for the Project does not exceed $1,000,000 over the life of the contract (up to 5 years).

Signature:_________________________________ Printed Name:_______________________ Title:_____________________________________ Agency Name:___________________________ Date:____________________
Note: In accordance with Public Contract Code Section 2205, false certification of this form shall be reported to the California Attorney General and may result in civil penalties equal to the greater of $250,000 or twice the Contract amount, termination of the Contract and/or eligibility to bid on contracts for three years. 418
RFB 22-23-47

ANNUAL CONTRACT FOR DIGESTER CLEANING

EXHIBIT “C”
S A M P L E (does not need to be submitted with Bid)

CONTRACT FOR DIGESTER CLEANING AT THE CITY OF VISALIA WATER

RECLAMATION FACILITY
(City of Visalia Bid No. 22-23-47)
This Agreement, entered into and effective this ________ day of ________________, 2023 [“Effective Date”], by and between the City of Visalia, hereinafter referred to as the “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 primary business address of ____________________ and SSN or EIN: ____________________; and WHEREAS, CITY is a municipal corporation and Charter Law City; and WHEREAS, City of Visalia reviewed and evaluated responses to the Bid and determined to award an contract to CONTRACTOR for the Annual Project; and
WHEREAS, CONTRACTOR represents it is licensed, qualified and willing to complete 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 commence on the Effective Date and expire upon completion of all obligations of the parties, unless earlier terminated by the parties. The initial contract term shall be for a twelve (12) month period and shall, at the City’s option and with the consent of the CONTRACTOR, be extended annually thereafter for four (4) consecutive one-year periods. CITY will be presumed to request renewal unless the CITY delivers a written notice of non-renewal to the CONTRACTOR a minimum of thirty (30) days prior to the renewal date. If the CONTRACTOR elects not to consent to renewal by the CITY, then they must provide the CITY Project Manager with written notice of non-renewal at least thirty (30) days prior to the renewal date.

Additionally, this Agreement may be terminated for convenience by the CITY, in whole or in part, by giving the CONTRACTOR fifteen (15) days’ written notice of the intent to terminate whenever the City determines that termination is in the best interest of the City. In the event of termination or expiration of this Agreement, CONTRACTOR shall transfer to CITY any funds and/or accounts receivable on hand attributable to the use of CITY funds.

2. ATTACHMENTS INCORPORATED:

The following are attachments for this Agreement. Said attachments are incorporated 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 22-23-47, Annual Contract for Digester Cleaning at the City of Visalia Water Reclamation Facility
Attachment 4 CONTRACTOR’s bid in response to Bid No. 22-23-47 419
RFB 22-23-47

ANNUAL CONTRACT FOR DIGESTER CLEANING

3. CONTRACTOR SCOPE OF SERVICES and COMMITMENTS*:

CONTRACTOR shall provide the following services for the stated compensation on or before the stated completion dates (“Scope of Services”):

All work described in Scope of Services in Bid No. 22-23-47.

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 not more than the following amount as total compensation under this Agreement, unless otherwise agreed in writing. Such sum shall be expended and paid by CITY on a reimbursement basis for services actually performed based on invoices, receipts, time sheets and similar documents presented by CONTRACTOR to CITY.

6. CONTRACT PRICE ADJUSTMENTS:

All prices quoted in response to this Invitation to Bid shall be firm and fixed for twelve (12) months from the annual anniversary date of the agreement. In order to protect the interests of the City and to give the vendor a reasonable basis for bidding, a price adjustment feature is hereby incorporated into the specifications. Prices bid by vendor may be adjusted annually at time of contract renewal and upon mutual agreement of the parties to the contract to allow for price increases or decreases for labor and benefit rates, supplies and materials.

It will be the responsibility of the contractor to request a price adjustment and to provide all documentation necessary. The request for price adjustment must be submitted to the project manager in writing a minimum of thirty (30) but no sooner than ninety (90) calendar days prior to the annual anniversary date of the agreement.

Requests filed after this time-period will not be considered.

The unit prices for the ensuing contracts shall be based on the movement of the unadjusted figures of the U.S.

Bureau of Labor Statistics Consumer Price Index (CPI) for All Urban Consumers (CPI-U U.S. City Average, All Items). The contract unit prices may be changed in an amount equal to the percentage of movement for the most recent twelve-month period.

In no instance shall the price increase exceed 5%. The contract unit price changes as a result of this formula shall be binding on the contractor for the subsequent contract year. The adjustment of the unit bid price shall not be retroactive and shall apply only to changes incurred after approval.

7. EXECUTIVE ORDER N-6-22 – RUSSIA SANCTIONS On March 4, 2022, Governor Gavin Newsom issued Executive Order N-6-22 (the EO) regarding Economic Sanctions against Russia and Russian entities and individuals. “Economic Sanctions” refers to sanctions imposed by the U.S. government in response to Russia’s actions in Ukraine, as well as any sanctions imposed under state law. The EO directs state agencies to terminate contracts with, and to refrain from entering any new contracts with, individuals or entities that are determined to be a target of Economic Sanctions. Accordingly, should the State determine Contractor is a target of Economic Sanctions or is conducting prohibited transactions with sanctioned individuals or entities, that shall be grounds for termination of this agreement. The State shall provide Contractor advance written notice of such termination, allowing Contractor at least 30 calendar days to provide a written response. Termination shall be at the sole discretion of the State.

Total Compensation: $
Source of Funds: Local Revenues
Payment Schedule: Within 30 days from date of invoice for completed work 420
RFB 22-23-47

ANNUAL CONTRACT FOR DIGESTER CLEANING

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 California that I am fully authorized to execute this Agreement for CONTRACTOR in the capacity I have 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
421
RFB 22-23-47

ANNUAL CONTRACT FOR DIGESTER CLEANING

EXHIBIT “C”, Attachment 1

GENERAL CONTRACT PROVISIONS
A. Successors and Assigns: This Agreement shall be binding upon and shall inure to the benefit 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 CONTRACTOR, or if sent via the United States Postal Service, postage 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 performance of this Agreement, shall act as an independent contractor, and therefore shall 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 litigation arising from this Agreement shall be in California. Any action brought to interpret 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 Agreement and each of the documents and exhibits or attachments referenced herein, which are incorporated by reference, represents the entire understanding of the parties as to those matters contained herein. No prior oral or written understanding shall be of any force or effect with respect to those matters covered hereunder. This Agreement may not be modified or altered except in writing signed by the parties, unless otherwise explicitly authorized.

G. Conflict With Law: If any part of this Agreement is found to be in conflict with applicable laws, such part shall be inoperative, null and void insofar as it is in conflict with said law, but the remainder of the Agreement shall be in full force and effect.

H. Indemnification: The CONTRACTOR waives any and all claims and recourse against the CITY, including the right of contribution of loss or damage to person or property arising from, growing out of, or in any way connected with or incidental to the CONTRACTOR’s performance of this Agreement, except claims arising from the concurrent or sole negligence of the CITY or its officers, agents or employees.

The CONTRACTOR will indemnify, hold harmless, and defend (at CITY’s option) the CITY against any and all claims, demands, damages, costs, expenses, or liability arising out of the CONTRACTOR’s performance of this Agreement except for liability arising out of the concurrent or sole negligence of the CITY or its officers, agents, or employees.

I. Attorney’s Fees: In the event either party commences any action, arbitration or legal proceedings for the enforcement of this Agreement, the prevailing party, as determined by the court or arbitrator, shall be entitled to recovery of its attorney’s fees and court costs incurred in the action brought thereon.

J. Headings: Section headings are provided for organizational purposes only and do not in any manner affect the scope or intent of the provisions thereunder.

K. 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 Visalia 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. 422
RFB 22-23-47

ANNUAL CONTRACT FOR DIGESTER CLEANING

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 of the following insurance coverage(s) and requirements. Such insurance coverage shall be primary coverage as respects CITY and any insurance or self-insurance maintained by CITY shall be in excess of CONTRACTOR’s insurance coverage and shall not contribute to it.

2. Subcontractor(s’) Insurance. If CONTRACTOR utilizes one or more subcontractors in the performance of this Agreement, CONTRACTOR shall obtain and maintain independent insurance as to each subcontractor or otherwise provide evidence of insurance coverage for each subcontractor equivalent to that required of CONTRACTOR.

3. Types of Insurance and Minimum Limits. The following types of insurance and minimum limits are required providing at least the following minimum coverage and limits of liability:
a. Worker’s Compensation written in accordance with the laws of the State of California providing coverage for any and all employees of CONTRACTOR in the minimum statutorily required coverage amounts;
b. Automobile Liability Insurance for each of CONTRACTOR’s vehicles used in the performance of this Agreement, including owned, non-owned (e.g. owned by CONTRACTOR’s employees or contractors), leased or hired vehicles, in the minimum amount of $1,000,000 combined single limit per occurrence for bodily injury and property damage.
c. Comprehensive or Commercial 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 Agreement is provided on a “Claims Made” rather than “Occurrence” form, CONTRACTOR agrees to maintain the required coverage for a period of three (3) years after the expiration of this Agreement (hereinafter “post agreement coverage”) and any extensions thereof. CONTRACTOR may maintain the required post agreement coverage by renewal or purchase of prior acts or tail coverage. This provision is contingent upon 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 during the term of this Agreement in order to purchase prior acts or tail coverage for post agreement coverage shall be deemed to be reasonable.

5. Endorsements.

All required Automobile and Comprehensive or Commercial General Liability Insurance shall be endorsed to contain the following clauses:
a. The City of Visalia, its officers, agents, employees, representatives, and volunteers are added as additional insureds as respects operations and activities of, or on behalf of the named insured, performed under contract with the City of Visalia.
b. It is agreed that any insurance maintained by the City of Visalia shall apply in excess of and not contribute with insurance provided by this policy.
423
RFB 22-23-47

ANNUAL CONTRACT FOR DIGESTER CLEANING

c. This insurance shall not be canceled, limited in scope or coverage, or non-renewed until after thirty (30) days prior written notice has been given to the City Clerk, City of Visalia, 707 W. Acequia, Visalia, CA, 93291

6. Proof of Coverage.

CONTRACTOR agrees to provide its insurance broker(s) with a full copy of these insurance provisions and provide CITY on or before the 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 Certificate(s) of Insurance or other evidence of insurance acceptable to the City of Visalia, which shall be provided by CONTRACTOR’s insurance company as evidence of the stipulated coverages. This Proof of Coverage shall then be mailed to the City of Visalia at the following address:

City of Visalia
707 W. Acequia
Visalia, CA 93291
Attn: Purchasing Division
424
425
Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 23-0223 Agenda Date: 6/5/2023 Agenda #: 12.

Agenda Item Wording:

Authorization for the City Manager to award a not to exceed annual contract in the amount of $275,000 to VAL Security Services from Vallejo, CA for guard staffing services at various City Facilities (RFB 22-23-35).

Deadline for Action: None
Submitting Department: Administration - Convention Center Contact Name and Phone Number:

Michael Kaiser, Convention Center Operations Supervisor, [email protected], (559) 713-4604
Adrian Reynosa, Convention Center Manager,
[email protected], (559) 713-4004
Nick Mascia, Assistant City Manager,
[email protected], (559) 713-4323
Department Recommendation:

Staff recommends that City Council authorize the City Manager to enter into a contract for security and guard staffing services at various City facilities to VAL Security Services from Vallejo, CA in a notto-exceed amount of $275,000.00 annually.

Background Discussion:

In 2017, the City Council approved the annual contract for security guard services to VAL Security Services from Vallejo, CA for City facilities for an estimated annual amount of $257,000. The contract was for a single year with four optional one-year extensions. The contract expired in 2022, however, VAL Security extended the contract on a month-to-month basis to allow the City to assemble and advertise a Request for Bids (RFB).

On March 2, 2023, RFB 22-23-35 for the annual contract for security guard staffing services was advertised with a deadline of submittals on March 30, 2023, at 2:00PM. The initial contract term shall be one (1) year from award of contract with options to renew for four (4) additional one-year periods.

The bid was drafted which allowed the bidders to select either one or both options of service to bid on. Per the bid summary, option A which included city-wide security services at the Water Reclamation Facility every evening from 3:30 pm through 6:00 am, Visalia Convention Center for small events up to 200 guests, Visalia Recreation events for up to 300 guests, and at the Visalia Airport as needed. The bidder was required to provide a weekly cost. Option B which included specific security services at the Visalia Convention Center for large events of 1,000 or more guests.

The bidder was required to provide a monthly cost. The need for security staffing for City Wide locations is to prevent uninterrupted service to protect patrons and city property and enforce health Visalia City Council Page 1 of 3 Printed on 6/2/2023
powered by Legistar™426
File #: 23-0223 Agenda Date: 6/5/2023 Agenda #: 12.
locations is to prevent uninterrupted service to protect patrons and city property and enforce health and safety without using current staffing.

Five bids were received with each of the bidders providing a cost for both options. Bids received were:

Option A Cost Weekly
Val Security Services $3,002.00
Good Guard Security $3,065.25
Devoy Private Security $4,104.00
Falcon Private Security $3,024.80
City Guard Inc. $4,108.00
Option B Cost Monthly
Val Security Services $9,875.00
Good Guard Security $27,500.00
Devoy Private Security $13,500.00
Falcon Private Security $9,950.00
City Guard Inc. $13,500.00
VAL Security Services is the apparent low bidder under both options and is recommended for a one (1) year agreement with four (4) one-year extensions for a total of five (5) years. This agreement can be terminated with or without cause by either party upon written notice. It is estimated that charges for City-Wide security guard services will be approximately $274,604.00. (Option A - $156,104; Option B - $118,500)
VAL Security Services of Vallejo, CA is the current Citywide Security contractor, and the staff has been satisfied with their services over the past five plus years. Val’s Security Service has been a reliable source for security staffing. The Service has been reliable and has been able to provide service on hours’ notice. Val’s security is also known to reach out to repeat promoters and aid with improving security for their events at the convention center.

Fiscal Impact:

Staff is recommending an annual contract not-to-exceed $275,000.00. The estimated contract amount from each Department is budgeted as part of their annual operating budget:

Department Key-Object Annual Rate
Water Reclamation 4332-55320 $107,835.00
Convention Center Large/Small Events 4135-55320 $134,932.00 Recreation 3122-55100 $ 30,180.00
Airport 4040-20101 $ 1,027.00
Grand Total $274,604.00
Prior Council Action:August 7, 2017 - City Council approved annual contract for security guard Visalia City Council Page 2 of 3 Printed on 6/2/2023
powered by Legistar™427
File #: 23-0223 Agenda Date: 6/5/2023 Agenda #: 12.
services to VAL Security Services from Vallejo, CA for City Facilities for an estimated annual amount of $257,000.00.

Other:

N/A
Alternatives:

None.

Recommended Motion (and Alternative Motions if expected):

I move to authorize the City Manager to enter into a contract with VAL Security Services in an annual amount of not to exceed $275,000.00.

Environmental Assessment Status:

N/A
CEQA Review:

N/A
Attachments:
· Attachment A - VAL Security Bid Submittal & Contract for Services · Attachment B - Bid Summary
Visalia City Council Page 3 of 3 Printed on 6/2/2023
powered by Legistar™428
429
430
431
432
433
434
435
436
437
438
439
440
441
442
443
Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 23-0230 Agenda Date: 6/5/2023 Agenda #: 13.

Agenda Item Wording:

Accept the City of Visalia Cash and Investment Report for the third quarter of the fiscal year which consists of months January, February, and March of 2023.

Deadline for Action: 6/5/2023
Submitting Department: Finance and Technology Services
Contact Name and Phone Number: Jason Montgomery, 4425
Department Recommendation:

Staff recommends that Council accept the City of Visalia Cash and Investment Report for the third quarter of the fiscal year which consists of months January, February, and March of 2023.

Background Discussion:

Introduction
The City accumulates significant cash assets before they are spent on a variety of governmental operations. For example, several large capital projects have accumulated substantial cash as they approach the start of the projects in the near future, or in some cases, have already begun. Some of these projects are the downtown street light project, cape seal of various streets and the major rehab of Caldwell Avenue from Akers to Shady and Santa Fe to Lovers Lane.

Some examples of large projects that cash has been accumulated for that have not started are the Civic Center Phase 2 project, and any potential mandated upgrades to the Water Reclamation Facility.

The quarterly investment report is intended to inform the City Council and community about the status of City investments, and holds staff accountable for the investment and management of these funds.

City Investment Policy
The City’s investments are diversified by the various maturities and credit types which are allowed under the City’s Investment Policy and California Government Code Section 53600 et seq. It is the policy of the City to invest public funds in a manner which will provide the greatest security with the maximum investment return while meeting the daily cash flow demands of the City and conforming to all state and local statutes governing the investment of public funds.

The City continues to be conservative and prudent with the investment objectives, which in order of priority is safety, liquidity, and yield, while maintaining compliance with federal, state, and local laws and regulations. These investments will enable the City to meet expenditure requirements for the next six months, as required by state law.

Economic Outlook
At March 31, 2023, the national unemployment rate was at 3.5%. The Consumer Price Index was at 4.98%, a decrease from the December 2022 rate of 6.50%. More currently, at its May 3, 2023 meeting, the Federal Open Market Committee (FOMC) raised the Federal Funds Rate (the rate at which institutions borrow and lend overnight funds to each other) by 25 basis points to the current range of 5.00% to 5.25%, its highest level since August of 2007, as they continued to try and help lower inflation to their optimum level of 2%. This was the 10th increase in just a little over a year. The FOMC did however indicate that the run of increases may be at its end.

Visalia City Council Page 1 of 5 Printed on 6/2/2023
powered by Legistar™444
File #: 23-0230 Agenda Date: 6/5/2023 Agenda #: 13.

Movements of the Federal Funds Rate are closely linked to Treasury Security rates; as the Federal Funds Rate increases, typically so do Treasury Security rates. Treasury Securities are investments that the City can purchase and are key benchmarks for other financial assets that the City can purchase (i.e.: Federal Agency’s). Table I shows the rate comparison of the Federal Funds Rate and short term Treasury Securities between the second and third quarter of the fiscal year as well as recent rates. Rates have continued to increase across shorter-term maturities, however, have remained lower in the longer maturity ranges as fears of a recession continue. The City has continued to remain laddered across all maturities.

December 2022
(2cnd Quarter-FY22/23)
March 2023
(3rd Quarter-FY22/23) May 22, 2023
Federal Funds Rate 4.25% - 4.50% 4.75% - 5.00% 5.00% - 5.25% 6 month Treasury 4.75% 4.86% 5.28%
1 year Treasury 4.69% 4.59% 5.06%
2 year Treasury 4.43% 4.03% 4.32%
3 year Treasury 4.22% 3.79% 3.98%
4 year Treasury 4.11% 3.68% 3.87%
5 year Treasury 4.00% 3.57% 3.77%
Table I
Portfolio Performance
The March 31, 2023 investment portfolio managed balance was $495,705,668.

The earnings rate as of March 31, 2023 was 2.25%. Key benchmarks and performance statistics for the City’s portfolio are shown in Table II, Managed Portfolio Performance Statistics.

Table II: Managed Portfolio Performance Statistics (dollars in millions) Quarter Ending Portfolio Balance
City Monthly
Portfolio Rate

LAIF & CAMP
Balance LAIF Rate
2 YR
Treasury
Weighted Average
Maturity (WAM)
December 2022 $481.0 1.93% $71.3 1.98% 4.43% 582 Days
March 2023 $495.7 2.25% $63.8 2.63% 4.03% 612 Days
Fiscal Year Average
2022/2023 $473.2 1.80% 1.86%
The following Charts I and II show the portfolio ladder and distribution as of March 31, 2023. The portfolio ladder (Chart I - Maturity Ladder) shows our investments based on when they are to mature (ie. 1 year and under, 1-2 years, 2-3 years, etc…). The City invests in different maturity dates to take advantage of different earnings rates (usually the longer the maturity, the higher the earning rate) as well as to spread out maturities so that the proceeds are reinvested at regular intervals. In addition, the City will keep funds needed for operating costs in short term maturities, while investing funds in longer term maturities for those funds that are not yet needed (future projects). Chart II - Maturity Distribution shows what percent each maturity level is of the total investment portfolio.

Visalia City Council Page 2 of 5 Printed on 6/2/2023
powered by Legistar™445
File #: 23-0230 Agenda Date: 6/5/2023 Agenda #: 13.

Chart I
Maturity Ladder
$-
$20,000,000
$40,000,000
$60,000,000
$80,000,000
$100,000,000
$120,000,000
$140,000,000
$160,000,000

3.341%

1.067%

2.299% 2.113%

2.605%

4.126%

LAIF & CAMP
1 Year and Under
1 - 2 Years
2 - 3 Years
3 - 4 Years
4 - 5 Years
5+ Years
· Note: Percent above each bar represents the average interest earnings rate for that maturity level Chart II
Maturity Distribution

12.9%

28.6%

18.1%

18.0%

13.4%

8.9% 0.1%

LAIF & CAMP
1 Year and Under
1 - 2 Years
2 - 3 Years
3 - 4 Years
4 - 5 Years
5+ Years
Table III: 3rd Quarter Investment Activity, shows investment activity for the quarter (January 2023 - March 2023).

Visalia City Council Page 3 of 5 Printed on 6/2/2023
powered by Legistar™446
File #: 23-0230 Agenda Date: 6/5/2023 Agenda #: 13.

Table III: 3rd Quarter Investment Activity

TYPE YIELD COUPON AMOUNT MATURITY DATE

PURCHASE
DATE
Maturities
U.S. Bank NA Corporate 1.42% 1.95% 3,000,000 01/09/2023 03/17/2020 Bank of America Corporate 2.00% 3.30% 3,000,000 01/11/2023 04/01/2020 U.S. Treasury Treasury 0.90% 1.50% 2,000,000 01/15/2023 07/29/2021 Federal Farm Credit Agency 1.65% 0.13% 2,000,000 02/03/2023 04/07/2022 U.S. Treasury Treasury 0.11% 2.00% 2,000,000 02/15/2023 07/29/2021 U.S. Treasury Treasury 0.15% 0.13% 2,000,000 02/28/2023 04/27/2021 Caterpillar Financial Service Corporate 0.55% 2.63% 2,575,000 03/01/2023 06/23/2020 Federal Home Loan Bank Agency 2.71% 2.50% 2,000,000 03/10/2023 04/06/2018 U.S. Treasury Treasury 0.11% 0.50% 2,000,000 03/15/2023 07/29/2021 20,575,000
Purchases
Walmart Corporate 4.11% 3.90% 3,000,000 09/09/2025 01/13/2023 Federal Farm Credit Agency 4.00% 4.00% 2,000,000 01/13/2026 01/13/2023 Amazon.Com Inc. Corporate 4.11% 3.15% 5,000,000 08/22/2027 02/03/2023 John Deere Capital Corp. Corporate 4.64% 4.75% 2,000,000 01/20/2028 02/21/2023 Federal Farm Credit Agency 4.27% 4.25% 3,000,000 11/23/2026 02/23/2023 Bay Area Toll Authority Muni 4.69% 2.43% 3,000,000 04/01/2026 02/28/2023 Amazon.Com Inc. Corporate 4.83% 4.55% 3,000,000 12/01/2027 02/28/2023 Torrance CA Joint Powers Authority Muni 4.85% 1.71% 1,030,000 06/01/2027 02/28/2023 JP Morgan Chase Co. Corporate 5.21% 5.20% 3,000,000 02/28/2028 02/28/2023 Apple Inc. Corporate 4.67% 1.20% 5,000,000 02/08/2028 03/03/2023 University of California Revenue Muni 5.00% 2.56% 1,600,000 05/15/2027 03/07/2023 University of California Revenue Muni 4.69% 1.32% 2,000,000 05/15/2027 03/09/2023 San Joaquin California Community College Muni 4.69% 1.43% 2,500,000 08/01/2027 03/09/2023 Federal Home Loan Bank Agency 4.22% 4.63% 2,000,000 03/14/2025 03/28/2023 Federal Farm Credit Agency 3.77% 4.38% 2,000,000 09/15/2027 03/28/2023 40,130,000
Fiscal Impact:
n/a
Prior Council Action: City of Visalia Cash and Investment Reports are reviewed and accepted quarterly.

Other: n/a
Alternatives: n/a
Recommended Motion (and Alternative Motions if expected):

Move to accept the City of Visalia Cash and Investment Report for the third quarter of the fiscal year which consists of months January, February, and March 2023.

Environmental Assessment Status: n/a
Visalia City Council Page 4 of 5 Printed on 6/2/2023
powered by Legistar™447
File #: 23-0230 Agenda Date: 6/5/2023 Agenda #: 13.

CEQA Review: n/a
Attachments: Attachment #1, City of Visalia Cash and Investment Summary Attachment #2, City of Visalia Investment Report by Maturity Date Visalia City Council Page 5 of 5 Printed on 6/2/2023
powered by Legistar™448
Attachment #1
% of
Security Investments Par Value Book Value Market Value Portfolio Yield Medium-Term Corporate Bonds $ 100,700,000 $ 96,958,971 $ 96,568,782 19.48% Agency's 179,611,000 174,559,430 174,506,008 35.20%
U.S. Treasury's 58,000,000 55,687,045 55,663,020 11.23% Municipal Bonds 110,475,000 105,040,380 104,914,419 21.16% Total Security Investments $ 448,786,000 $ 432,245,826 $ 431,652,229 87.08% Other Investments
Local Agency Investment Fund (LAIF) $ 13,207,995 $ 13,207,995 $ 13,207,995 2.66% Local Agency Investment Fund (LAIF) - COVID 29,685,431 29,685,431 29,685,431 5.99% California Asset Management Program (CAMP) 20,906,036 20,906,036 20,906,036 4.22% Local Bonds 253,977 253,977 253,977 0.05%
Total Other Investments $ 64,053,439 $ 64,053,439 $ 64,053,439 12.92% Total Investments $ 512,839,439 $ 496,299,265 $ 495,705,668 100.0% 2.25% Cash with Fiscal Agents
US Bank 2014 COP (Convention Center Refinancing) $ 2
US Bank 2015 COP (VECC Loan) 10,778
US Bank 2003 East Visalia RDA 276,520
US Bank - Custodial Account -
Delta Dental (Dental Prefunding) 60,700
Keenan & Associates (Workers Comp Prefunding) 316,554
Total Cash with Fiscal Agents $ 664,554
Cash in Banks and Other Cash
Citizens Business Bank (Sweep and Operating)-estimate $ 2,345,113 Petty Cash - Various City Offices 11,250
Total Cash in Banks and Other Cash $ 2,356,363
Total Cash and Investments $ 498,726,585
City of Visalia
Cash and Investment Summary
Quarter Ended March 31, 2023
449
Attachment #2
Investments Type Par Value Book Value Market Value Coupon Yield % of
Portfolio Maturity
S&P/Moody's
Credit Rating
Days to
Maturity
Federal Farm Credit Agency $ 2,000,000.00 $ 1,998,620.00 $ 1,998,940.00 2.70% 2.72% 0.40% 04/11/23 AA+ 11 WalMart Inc. Corporate $ 1,000,000.00 $ 999,970.00 $ 999,540.00 2.55% 0.52% 0.20% 04/11/23 AA 11 U.S. Treasury Treasury $ 2,000,000.00 $ 1,959,760.00 $ 1,997,120.00 0.25% 0.12% 0.40% 04/15/23 Aaa 15 Federal Home Loan Mortgage Corporation Agency $ 5,000,000.00 $ 4,900,650.00 $ 4,988,950.00 0.38% 2.07% 1.01% 04/20/23 AA+ 20 Bank of New York Mellon Corp. Corporate $ 1,000,000.00 $ 1,004,220.00 $ 998,780.00 3.50% 0.55% 0.20% 04/28/23 A 28 U.S. Treasury Treasury $ 2,000,000.00 $ 1,955,000.00 $ 1,993,100.00 0.13% 0.20% 0.40% 04/30/23 Aaa 30 U.S. Treasury Treasury $ 2,000,000.00 $ 1,979,760.00 $ 1,995,360.00 1.63% 0.16% 0.40% 04/30/23 Aaa 30 Federal Farm Credit Agency $ 2,000,000.00 $ 2,004,960.00 $ 1,996,920.00 3.00% 2.73% 0.40% 05/02/23 AA+ 32 Federal Home Loan Mortgage Corporation Agency $ 2,000,000.00 $ 1,957,460.00 $ 1,992,740.00 0.38% 1.24% 0.40% 05/05/23 AA+ 35 Federal Home Loan Mortgage Corporation Agency $ 3,000,000.00 $ 2,936,190.00 $ 2,989,110.00 0.38% 1.17% 0.60% 05/05/23 AA+ 35 U.S. Treasury Treasury $ 2,000,000.00 $ 1,980,460.00 $ 1,993,040.00 1.75% 0.14% 0.40% 05/15/23 Aaa 45 University of California Revenue Muni $ 4,360,000.00 $ 4,256,144.80 $ 4,336,804.80 0.37% 1.70% 0.87% 05/15/23 AA- 45 Federal National Mortgage Association Agency $ 2,200,000.00 $ 2,149,906.00 $ 2,186,910.00 0.25% 0.68% 0.44% 05/22/23 AA+ 52 Federal Farm Credit Agency $ 2,000,000.00 $ 1,957,600.00 $ 1,988,120.00 0.38% 1.25% 0.40% 05/23/23 AA+ 53 Federal Farm Credit Agency $ 3,000,000.00 $ 2,936,400.00 $ 2,982,180.00 0.38% 1.20% 0.60% 05/23/23 AA+ 53 U.S. Treasury Treasury $ 2,000,000.00 $ 1,950,460.00 $ 1,985,420.00 0.13% 0.21% 0.40% 05/31/23 Aaa 61 U.S. Treasury Treasury $ 2,000,000.00 $ 1,977,180.00 $ 1,990,080.00 1.63% 0.18% 0.40% 05/31/23 Aaa 61 Federal Home Loan Bank Agency $ 2,000,000.00 $ 1,948,880.00 $ 1,984,540.00 0.13% 0.16% 0.40% 06/02/23 AA+ 63 Federal Farm Credit Agency $ 3,000,000.00 $ 2,930,640.00 $ 2,974,200.00 0.35% 0.54% 0.60% 06/08/23 AA+ 69 U.S. Treasury Treasury $ 2,000,000.00 $ 1,949,140.00 $ 1,982,360.00 0.25% 0.15% 0.40% 06/15/23 Aaa 76 Federal Home Loan Mortgage Corporation Agency $ 2,000,000.00 $ 1,995,300.00 $ 1,991,120.00 2.75% 0.16% 0.40% 06/19/23 AA+ 80 Federal Home Loan Mortgage Corporation Agency $ 3,000,000.00 $ 2,992,950.00 $ 2,986,680.00 2.75% 0.52% 0.60% 06/19/23 AA+ 80 Federal Home Loan Mortgage Corporation Agency $ 2,965,000.00 $ 2,885,775.20 $ 2,935,201.75 0.25% 0.19% 0.59% 06/26/23 AA+ 87 U.S. Bank NA Corporate $ 2,000,000.00 $ 1,998,320.00 $ 1,987,160.00 3.40% 1.05% 0.40% 07/24/23 AA- 115 U.S. Treasury Treasury $ 2,000,000.00 $ 1,940,000.00 $ 1,969,760.00 0.13% 0.24% 0.40% 07/31/23 Aaa 122 CA State Muni $ 2,940,000.00 $ 2,950,907.40 $ 2,924,829.60 3.40% 3.05% 0.59% 08/01/23 AA- 123 San Diego Community College District Muni $ 3,375,000.00 $ 3,340,372.50 $ 3,343,005.00 2.00% 0.43% 0.67% 08/01/23 AAA 123 Bank of New York Mellon Corp. Corporate $ 1,000,000.00 $ 1,002,530.00 $ 993,170.00 3.45% 1.87% 0.20% 08/11/23 A 133 Federal Home Loan Bank Agency $ 2,000,000.00 $ 1,999,800.00 $ 1,988,040.00 3.25% 3.26% 0.40% 08/15/23 AA+ 137 Federal Home Loan Mortgage Corporation Agency $ 2,000,000.00 $ 1,939,420.00 $ 1,964,460.00 0.25% 0.20% 0.40% 08/24/23 AA+ 146 Federal Home Loan Bank Agency $ 3,000,000.00 $ 2,909,760.00 $ 2,942,160.00 0.13% 0.22% 0.59% 08/28/23 AA+ 150 Federal Home Loan Bank Agency $ 3,000,000.00 $ 2,900,820.00 $ 2,941,170.00 0.13% 0.22% 0.59% 09/08/23 AA+ 161 Federal Home Loan Bank Agency $ 2,000,000.00 $ 1,987,720.00 $ 1,979,900.00 2.38% 1.58% 0.40% 09/08/23 AA+ 161 Federal National Mortgage Association Agency $ 2,000,000.00 $ 1,999,820.00 $ 1,981,940.00 2.88% 2.36% 0.40% 09/12/23 AA+ 165 Federal Farm Credit Agency $ 2,500,000.00 $ 2,419,650.00 $ 2,446,175.00 0.22% 0.25% 0.49% 09/22/23 AA+ 175 U.S. Treasury Treasury $ 2,000,000.00 $ 1,934,060.00 $ 1,957,040.00 0.25% 0.26% 0.39% 09/30/23 Aaa 183 CA State Muni $ 2,000,000.00 $ 1,980,220.00 $ 1,973,100.00 2.25% 3.15% 0.40% 10/01/23 AA- 184 CA State Muni $ 2,500,000.00 $ 2,475,275.00 $ 2,466,375.00 2.25% 1.00% 0.50% 10/01/23 AA- 184 Federal Farm Credit Agency $ 3,000,000.00 $ 2,899,020.00 $ 2,928,480.00 0.29% 0.64% 0.59% 10/12/23 AA+ 195 Federal Home Loan Mortgage Corporation Agency $ 3,000,000.00 $ 2,893,710.00 $ 2,926,230.00 0.13% 0.46% 0.59% 10/16/23 AA+ 199 CA State Muni $ 1,500,000.00 $ 1,498,260.00 $ 1,482,795.00 3.00% 0.35% 0.30% 11/01/23 AA- 215 Federal Home Loan Mortgage Corporation Agency $ 3,000,000.00 $ 2,893,950.00 $ 2,918,700.00 0.25% 1.39% 0.59% 11/06/23 AA+ 220 Bristol-Myers Squibb Co. Corporate $ 3,000,000.00 $ 2,895,240.00 $ 2,919,690.00 0.54% 0.19% 0.59% 11/13/23 A+ 227 U.S. Treasury Treasury $ 2,000,000.00 $ 1,927,340.00 $ 1,945,080.00 0.25% 0.65% 0.39% 11/15/23 Aaa 229 Federal Farm Credit Agency $ 3,000,000.00 $ 2,904,210.00 $ 2,921,910.00 0.55% 0.75% 0.59% 11/24/23 AA+ 238 Federal National Mortgage Association Agency $ 2,200,000.00 $ 2,119,810.00 $ 2,136,464.00 0.25% 0.90% 0.43% 11/27/23 AA+ 241 U.S. Treasury Treasury $ 2,000,000.00 $ 1,932,040.00 $ 1,945,080.00 0.50% 0.66% 0.39% 11/30/23 Aaa 244 Sacramento County Sanatation District Muni $ 1,500,000.00 $ 1,452,855.00 $ 1,459,185.00 0.76% 2.75% 0.29% 12/01/23 AA 245 Federal Home Loan Mortgage Corporation Agency $ 2,000,000.00 $ 1,924,380.00 $ 1,939,580.00 0.25% 0.21% 0.39% 12/04/23 AA+ 248 Federal Home Loan Bank Agency $ 2,000,000.00 $ 2,010,500.00 $ 1,980,220.00 3.38% 2.68% 0.40% 12/08/23 AA+ 252 U.S. Treasury Treasury $ 2,000,000.00 $ 1,919,060.00 $ 1,937,260.00 0.13% 0.67% 0.39% 12/15/23 Aaa 259 Federal Home Loan Bank Agency $ 3,000,000.00 $ 2,898,930.00 $ 2,910,270.00 0.63% 0.75% 0.59% 12/22/23 AA+ 266 U.S. Treasury Treasury $ 2,000,000.00 $ 1,990,000.00 $ 1,970,000.00 2.63% 0.68% 0.40% 12/31/23 Aaa 275 City of Oakland Muni $ 3,435,000.00 $ 3,342,735.90 $ 3,346,686.15 1.58% 1.56% 0.68% 01/15/24 AA 290 Bank of America Corporate $ 3,000,000.00 $ 3,032,010.00 $ 2,976,060.00 4.13% 0.44% 0.60% 01/22/24 A- 297 U.S. Bancorp Corporate $ 2,500,000.00 $ 2,511,575.00 $ 2,464,525.00 3.70% 1.32% 0.50% 01/30/24 A+ 305 Federal National Mortgage Association Agency $ 2,000,000.00 $ 1,985,820.00 $ 1,961,960.00 2.50% 1.76% 0.40% 02/05/24 AA+ 311 Federal Farm Credit Agency $ 2,000,000.00 $ 1,916,560.00 $ 1,923,200.00 0.25% 0.29% 0.39% 02/26/24 AA+ 332 Federal Home Loan Bank Agency $ 2,000,000.00 $ 1,963,120.00 $ 1,947,600.00 1.88% 1.46% 0.39% 03/08/24 AA+ 343 Federal Home Loan Bank Agency $ 3,000,000.00 $ 2,998,626.00 $ 2,997,900.00 4.75% 4.79% 0.60% 03/08/24 AA+ 343 Federal Farm Credit Agency $ 2,000,000.00 $ 1,915,780.00 $ 1,915,520.00 0.30% 0.31% 0.39% 03/18/24 AA+ 353 CA ST Muni $ 2,000,000.00 $ 1,988,780.00 $ 1,965,200.00 3.00% 3.37% 0.40% 04/01/24 AA- 367 CA ST Muni $ 3,000,000.00 $ 2,955,930.00 $ 2,947,800.00 3.00% 4.00% 0.59% 04/01/24 AA- 367 CA ST Muni $ 3,000,000.00 $ 2,938,140.00 $ 2,947,800.00 3.00% 4.50% 0.59% 04/01/24 AA- 367 Citigroup Corporate $ 5,000,000.00 $ 4,964,150.00 $ 4,876,150.00 3.35% 3.35% 0.98% 04/29/24 A 395 Bank of America Corporate $ 3,000,000.00 $ 2,872,890.00 $ 2,900,280.00 3.10% 3.10% 0.59% 04/29/24 A- 395 Federal Home Loan Bank Agency $ 2,000,000.00 $ 1,992,820.00 $ 1,962,220.00 2.88% 1.85% 0.40% 06/14/24 AA+ 441 Federal Home Loan Bank Agency $ 3,000,000.00 $ 3,006,096.00 $ 3,011,070.00 4.88% 4.72% 0.61% 06/14/24 AA+ 441 Toyota Motor Credit Corporate $ 3,000,000.00 $ 2,820,240.00 $ 2,844,390.00 0.50% 0.59% 0.57% 06/14/24 A+ 441 Federal Home Loan Mortgage Corporation Agency $ 3,750,000.00 $ 3,556,800.00 $ 3,556,087.50 0.38% 0.38% 0.72% 06/28/24 AA+ 455 City of Visalia
Investment Report
By Maturity Date
03/31/2023
450
City of Visalia
Investment Report
By Maturity Date
03/31/2023 (cont.)
Federal National Mortgage Association Agency $ 2,000,000.00 $ 1,954,820.00 $ 1,929,600.00 1.75% 1.68% 0.39% 07/02/24 AA+ 459 American Honda Finance Corp. Corporate $ 2,500,000.00 $ 2,347,975.00 $ 2,369,150.00 0.55% 0.71% 0.48% 07/12/24 A- 469 Santa Clara County Muni $ 6,535,000.00 $ 6,381,819.60 $ 6,321,501.55 2.00% 2.73% 1.28% 08/01/24 AAA 489 Federal Home Loan Bank Agency $ 2,000,000.00 $ 1,936,960.00 $ 1,919,740.00 1.50% 1.45% 0.39% 08/15/24 AA+ 503 City of Berkeley Muni $ 800,000.00 $ 802,672.00 $ 784,616.00 3.50% 1.95% 0.16% 09/01/24 AA+ 520 Federal Home Loan Bank Agency $ 2,000,000.00 $ 1,991,720.00 $ 1,961,420.00 2.88% 1.64% 0.40% 09/13/24 AA+ 532 Toyota Motor Credit Corporate $ 3,000,000.00 $ 2,818,500.00 $ 2,834,550.00 0.63% 1.04% 0.57% 09/13/24 A+ 532 Federal Home Loan Bank Agency $ 2,000,000.00 $ 1,981,106.31 $ 1,971,760.00 3.50% 4.00% 0.40% 09/13/24 AA+ 532 CA ST Muni $ 3,000,000.00 $ 3,041,280.00 $ 3,041,580.00 5.50% 4.72% 0.61% 10/01/24 AA- 550 Federal Home Loan Bank Agency $ 2,000,000.00 $ 1,988,180.00 $ 2,004,260.00 4.50% 4.83% 0.40% 10/03/24 AA+ 552 Federal National Mortgage Association Agency $ 3,000,000.00 $ 2,907,120.00 $ 2,882,700.00 1.63% 0.75% 0.58% 10/15/24 AA+ 564 Bank of New York Mellon Corp. Corporate $ 3,000,000.00 $ 2,902,950.00 $ 2,864,100.00 2.10% 0.52% 0.58% 10/24/24 A 573 Bank of New York Mellon Corp. Corporate $ 3,000,000.00 $ 2,902,950.00 $ 2,864,100.00 2.10% 1.93% 0.58% 10/24/24 A 573 U.S. Treasury Treasury $ 2,000,000.00 $ 1,856,687.50 $ 1,890,700.00 0.75% 4.31% 0.38% 11/15/24 Aaa 595 CA State Department Water Muni $ 5,000,000.00 $ 4,667,800.00 $ 4,693,350.00 0.51% 1.59% 0.95% 12/01/24 AAA 611 Federal Home Loan Bank Agency $ 2,000,000.00 $ 1,985,800.00 $ 1,947,560.00 2.75% 1.48% 0.39% 12/13/24 AA+ 623 Federal Home Loan Bank Agency $ 2,000,000.00 $ 1,991,660.00 $ 2,009,820.00 4.63% 4.83% 0.41% 12/13/24 AA+ 623 State Street Corp. Corporate $ 3,000,000.00 $ 2,978,940.00 $ 2,906,250.00 3.30% 0.64% 0.59% 12/16/24 A 626 Federal National Mortgage Association Agency $ 2,000,000.00 $ 1,931,180.00 $ 1,911,860.00 1.63% 0.36% 0.39% 01/07/25 AA+ 648 U.S. Treasury Treasury $ 2,000,000.00 $ 1,918,200.00 $ 1,903,360.00 1.38% 0.52% 0.38% 01/31/25 Aaa 672 Federal Home Loan Mortgage Corporation Agency $ 3,000,000.00 $ 2,883,750.00 $ 2,855,700.00 1.50% 0.74% 0.58% 02/12/25 AA+ 684 Toyota Motor Credit Corporate $ 5,000,000.00 $ 4,766,850.00 $ 4,755,750.00 1.80% 2.30% 0.96% 02/13/25 A+ 685 U.S. Treasury Treasury $ 2,000,000.00 $ 1,948,680.00 $ 1,922,820.00 2.00% 0.52% 0.39% 02/15/25 Aaa 687 Federal Home Loan Bank Agency $ 2,000,000.00 $ 2,014,926.00 $ 2,012,540.00 4.63% 4.22% 0.41% 03/14/25 AA+ 714 U.S. Treasury Treasury $ 5,000,000.00 $ 4,949,050.00 $ 4,865,050.00 2.63% 2.36% 0.98% 03/31/25 Aaa 731 Bay Area Toll Authority Muni $ 3,000,000.00 $ 2,837,910.00 $ 2,877,120.00 2.33% 4.70% 0.58% 04/01/25 AA 732 Federal National Mortgage Association Agency $ 2,000,000.00 $ 1,870,200.00 $ 1,859,520.00 0.63% 0.59% 0.38% 04/22/25 AA+ 753 Federal National Mortgage Association Agency $ 2,000,000.00 $ 1,870,680.00 $ 1,859,520.00 0.63% 3.15% 0.38% 04/22/25 AA+ 753 Federal Farm Credit Agency $ 5,000,000.00 $ 4,955,300.00 $ 4,851,000.00 2.75% 2.75% 0.98% 04/25/25 AA+ 756 Citigroup Corporate $ 5,000,000.00 $ 4,911,650.00 $ 4,837,200.00 4.00% 4.00% 0.98% 05/13/25 A 774 Federal Home Loan Bank Agency $ 2,000,000.00 $ 1,862,940.00 $ 1,849,160.00 0.63% 0.52% 0.37% 06/13/25 AA+ 805 Federal National Mortgage Association Agency $ 2,000,000.00 $ 1,855,220.00 $ 1,848,220.00 0.50% 0.46% 0.37% 06/17/25 AA+ 809 Citigroup Corporate $ 3,000,000.00 $ 2,996,910.00 $ 2,912,430.00 4.75% 4.75% 0.59% 06/30/25 A 822 Los Angeles School District Muni $ 3,345,000.00 $ 3,122,958.90 $ 3,113,459.10 1.25% 1.09% 0.63% 07/01/25 Aa3 823 JP Morgan Chase Co. Corporate $ 1,450,000.00 $ 1,452,291.00 $ 1,426,756.50 3.90% 1.07% 0.29% 07/15/25 A- 837 Federal Home Loan Mortgage Corporation Agency $ 2,996,000.00 $ 2,763,660.20 $ 2,756,409.88 0.38% 0.46% 0.56% 07/21/25 AA+ 843 Los Angeles Commty College Muni $ 5,000,000.00 $ 4,609,550.00 $ 4,606,300.00 0.77% 0.97% 0.93% 08/01/25 AA+ 854 U.S. Treasury Treasury $ 2,000,000.00 $ 1,932,625.00 $ 1,962,420.00 3.13% 4.38% 0.40% 08/15/25 Aaa 868 WalMart Inc. Corporate $ 3,000,000.00 $ 2,984,160.00 $ 2,990,910.00 3.90% 4.11% 0.60% 09/09/25 AA 893 John Deere Capital Corp. Corporate $ 2,000,000.00 $ 1,952,040.00 $ 1,950,020.00 3.40% 4.27% 0.39% 09/11/25 A 895 Federal Home Loan Bank Agency $ 3,000,000.00 $ 2,878,860.00 $ 2,840,070.00 1.75% 1.33% 0.57% 09/12/25 AA+ 896 Los Angeles School District Muni $ 5,000,000.00 $ 4,690,250.00 $ 4,668,200.00 1.54% 1.58% 0.94% 09/15/25 AA- 899 Federal Home Loan Mortgage Corporation Agency $ 2,000,000.00 $ 1,834,580.00 $ 1,827,220.00 0.38% 0.44% 0.37% 09/23/25 AA+ 907 Federal Home Loan Mortgage Corporation Agency $ 2,000,000.00 $ 1,834,580.00 $ 1,827,220.00 0.38% 0.90% 0.37% 09/23/25 AA+ 907 Federal Home Loan Mortgage Corporation Agency $ 2,000,000.00 $ 1,838,820.00 $ 1,834,480.00 0.55% 0.55% 0.37% 09/30/25 AA+ 914 CA ST Muni $ 3,000,000.00 $ 3,060,360.00 $ 3,086,010.00 5.50% 4.74% 0.62% 10/01/25 AA- 915 Procter & Gamble Co. Corporate $ 3,000,000.00 $ 2,758,680.00 $ 2,747,880.00 0.55% 0.69% 0.55% 10/29/25 AA- 943 CA State Muni $ 2,000,000.00 $ 1,976,280.00 $ 1,939,460.00 3.00% 0.70% 0.39% 11/01/25 AA- 946 CA State University Muni $ 5,555,000.00 $ 5,089,990.95 $ 5,103,211.85 0.89% 1.63% 1.03% 11/01/25 AA- 946 Federal National Mortgage Association Agency $ 2,000,000.00 $ 1,836,200.00 $ 1,829,820.00 0.50% 0.68% 0.37% 11/07/25 AA+ 952 Federal National Mortgage Association Agency $ 2,000,000.00 $ 1,836,200.00 $ 1,829,820.00 0.50% 1.13% 0.37% 11/07/25 AA+ 952 U.S. Bancorp Corporate $ 3,000,000.00 $ 3,014,670.00 $ 2,887,920.00 3.95% 0.75% 0.58% 11/17/25 A+ 962 Federal Home Loan Bank Agency $ 2,000,000.00 $ 2,015,186.78 $ 2,014,980.00 4.50% 4.22% 0.41% 12/12/25 AA+ 987 Federal Farm Credit Agency $ 2,000,000.00 $ 2,000,000.00 $ 2,000,900.00 4.00% 4.00% 0.40% 01/13/26 AA+ 1019 John Deere Capital Corp. Corporate $ 3,000,000.00 $ 2,708,820.00 $ 2,722,590.00 0.70% 0.74% 0.55% 01/15/26 A 1021 Charles Schwab Corp. Corporate $ 4,000,000.00 $ 3,588,400.00 $ 3,506,920.00 0.90% 1.04% 0.71% 03/11/26 A 1076 CA State Muni $ 3,400,000.00 $ 3,301,740.00 $ 3,248,700.00 2.65% 0.97% 0.66% 04/01/26 AA- 1097 CA State Muni $ 1,320,000.00 $ 1,281,852.00 $ 1,261,260.00 2.65% 3.18% 0.25% 04/01/26 AA- 1097 Bay Area Toll Authority Muni $ 2,405,000.00 $ 2,218,925.15 $ 2,277,054.00 2.43% 4.90% 0.46% 04/01/26 AA 1097 Bay Area Toll Authority Muni $ 3,000,000.00 $ 2,806,860.00 $ 2,840,400.00 2.43% 4.69% 0.57% 04/01/26 AA 1097 Amazon.Com Inc. Corporate $ 3,000,000.00 $ 2,728,230.00 $ 2,719,920.00 1.00% 1.02% 0.55% 05/12/26 AA 1138 John Deere Capital Corp. Corporate $ 1,250,000.00 $ 1,129,837.50 $ 1,128,500.00 1.05% 0.91% 0.23% 06/17/26 A 1174 U.S. Treasury Treasury $ 3,000,000.00 $ 2,754,030.00 $ 2,735,520.00 0.88% 1.61% 0.55% 06/30/26 Aaa 1187 Federal Farm Credit Agency $ 2,000,000.00 $ 1,987,840.00 $ 2,031,680.00 4.50% 4.68% 0.41% 07/27/26 AA+ 1214 U.S. Treasury Treasury $ 5,000,000.00 $ 4,534,400.00 $ 4,510,150.00 0.63% 2.58% 0.91% 07/31/26 Aaa 1218 Los Angeles Commty College Muni $ 2,000,000.00 $ 1,819,360.00 $ 1,805,240.00 1.17% 2.38% 0.36% 08/01/26 AA+ 1219 Fremont Unified School District Muni $ 5,470,000.00 $ 4,928,907.60 $ 4,883,123.70 0.83% 3.30% 0.99% 08/01/26 AA- 1219 Upper Santa Clara Valley Joint Powers Authority Muni $ 3,700,000.00 $ 3,358,046.00 $ 3,339,805.00 1.18% 3.43% 0.67% 08/01/26 AA 1219 San Jose Unified School District Muni $ 2,205,000.00 $ 2,205,352.80 $ 2,136,887.55 3.37% 3.55% 0.43% 08/01/26 AA+ 1219 Federal Home Loan Bank Agency $ 3,000,000.00 $ 2,841,000.00 $ 2,794,140.00 1.88% 1.12% 0.56% 09/11/26 AA+ 1260 451
City of Visalia
Investment Report
By Maturity Date
03/31/2023 (cont.)
Federal National Mortgage Association Agency $ 2,000,000.00 $ 1,903,000.00 $ 1,871,380.00 1.88% 1.21% 0.38% 09/24/26 AA+ 1273 U.S. Treasury Treasury $ 3,000,000.00 $ 2,752,200.00 $ 2,716,890.00 0.88% 3.02% 0.55% 09/30/26 Aaa 1279 CA State Muni $ 3,000,000.00 $ 2,868,990.00 $ 2,818,650.00 2.38% 1.05% 0.57% 10/01/26 AA- 1280 Federal Farm Credit Agency $ 3,000,000.00 $ 2,998,107.66 $ 3,037,140.00 4.25% 4.27% 0.61% 11/23/26 AA+ 1333 CA State Department Water Muni $ 5,000,000.00 $ 4,502,700.00 $ 4,470,350.00 1.05% 1.68% 0.90% 12/01/26 AAA 1341 Federal Home Loan Bank Agency $ 3,000,000.00 $ 2,774,250.00 $ 2,732,040.00 1.25% 1.66% 0.55% 12/21/26 AA+ 1361 Federal Home Loan Bank Agency $ 5,000,000.00 $ 4,623,750.00 $ 4,553,400.00 1.25% 2.70% 0.92% 12/21/26 AA+ 1361 Federal Farm Credit Agency $ 2,000,000.00 $ 1,985,760.00 $ 2,000,060.00 3.88% 4.07% 0.40% 12/23/26 AA+ 1363 U.S. Treasury Treasury $ 5,000,000.00 $ 4,746,100.00 $ 4,665,450.00 1.88% 2.37% 0.94% 02/28/27 Aaa 1430 Amazon.Com Inc. Corporate $ 5,000,000.00 $ 4,905,300.00 $ 4,837,800.00 3.30% 3.38% 0.98% 04/13/27 AA 1474 Federal Farm Credit Agency $ 5,000,000.00 $ 4,947,400.00 $ 4,808,100.00 2.88% 2.88% 0.97% 04/26/27 AA+ 1487 University of California Revenue Muni $ 1,600,000.00 $ 1,453,968.00 $ 1,485,696.00 2.56% 5.00% 0.30% 05/15/27 AA- 1506 University of California Revenue Muni $ 2,000,000.00 $ 1,746,660.00 $ 1,779,980.00 1.32% 4.69% 0.36% 05/15/27 AA 1506 Torrance CA Joint Powers Authority Muni $ 1,030,000.00 $ 906,801.70 $ 901,734.10 1.71% 4.85% 0.18% 06/01/27 AA 1523 San Joaquin California Community College Dist. Muni $ 2,500,000.00 $ 2,179,725.00 $ 2,237,150.00 1.43% 4.69% 0.45% 08/01/27 Aa2 1584 U.S. Treasury Treasury $ 3,000,000.00 $ 2,900,812.50 $ 2,829,960.00 2.25% 2.97% 0.57% 08/15/27 Aaa 1598 Amazon.Com Inc. Corporate $ 5,000,000.00 $ 4,803,465.00 $ 4,817,300.00 3.15% 4.11% 0.97% 08/22/27 AA 1605 Federal Farm Credit Agency $ 2,000,000.00 $ 2,049,260.22 $ 2,047,620.00 4.38% 3.77% 0.41% 09/15/27 AA+ 1629 Toyota Motor Credit Corporate $ 2,000,000.00 $ 1,987,280.00 $ 2,010,680.00 4.55% 4.70% 0.41% 09/20/27 A+ 1634 Amazon.Com Inc. Corporate $ 3,000,000.00 $ 2,965,092.00 $ 3,045,300.00 4.55% 4.83% 0.61% 12/01/27 AA 1706 Federal Home Loan Bank Agency $ 2,000,000.00 $ 2,019,380.00 $ 2,031,720.00 4.25% 4.03% 0.41% 12/10/27 AA+ 1715 Federal Farm Credit Agency $ 2,000,000.00 $ 1,977,580.00 $ 1,986,560.00 3.75% 4.00% 0.40% 12/22/27 AA+ 1727 John Deere Capital Corp. Corporate $ 2,000,000.00 $ 2,009,160.00 $ 2,042,000.00 4.75% 4.64% 0.41% 01/20/28 A 1756 Apple Inc. Corporate $ 5,000,000.00 $ 4,243,675.00 $ 4,397,050.00 1.20% 4.67% 0.89% 02/08/28 AA+ 1775 JP Morgan Chase Co. Corporate $ 3,000,000.00 $ 3,000,000.00 $ 3,033,960.00 5.20% 5.21% 0.61% 02/28/28 A- 1795 Total Investments $ 448,786,000.00 $ 432,245,826.17 $ 431,652,229.03 87.1% Other Investments
Local Agency Investment Funds (LAIF) LAIF $ 13,207,994.69 $ 13,207,994.69 $ 13,207,994.69 2.63% 2.63% 2.7% 03/31/23 N/A - Local Agency Investment Funds (LAIF) - COVID LAIF $ 29,685,431.19 $ 29,685,431.19 $ 29,685,431.19 2.63% 2.63% 6.0% 03/31/23 N/A - California Asset Management Program (CAMP) CAMP $ 20,906,035.57 $ 20,906,035.57 $ 20,906,035.57 4.80% 4.80% 4.2% 03/31/23 N/A - Orchard Walk West Bond $ 135,000.00 $ 135,000.00 $ 135,000.00 6.75% 6.75% 0.0% 06/01/26 N/A 1158 Atwood Water Main District Bond $ 72,812.23 $ 72,812.23 $ 72,812.23 4.00% 4.00% 0.0% 09/02/30 N/A 2712 Laura Water Main District Bond $ 46,165.22 $ 46,165.22 $ 46,165.22 4.00% 4.00% 0.0% 09/02/30 N/A 2712 Total Other Investments $ 64,053,438.90 $ 64,053,438.90 $ 64,053,438.90 12.9% Total Portfolio Holdings $ 512,839,438.90 $ 496,299,265.07 $ 495,705,667.93 2.25% 100.0% 452
Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 23-0231 Agenda Date: 6/5/2023 Agenda #: 14.

Agenda Item Wording:

Approve Resolution Number 2023-21 adopting the City of Visalia's annually updated Investment Policy and delegating authority to invest funds for the City to the Finance Director/Treasurer for fiscal year 2023-24.

Deadline for Action: 6/5/2023
Submitting Department: Finance and Technology Services
Contact Name and Phone Number: Jason Montgomery, 4425
Department Recommendation:

Staff recommends that Council take the following actions for fiscal year 2023-24.

1. Approve the annually adopted Investment Policy.

2. Continue to delegate authority of the investment program to the Finance Director/Treasurer, Renee Nagel.

Background Discussion:

The City of Visalia’s Investment Policy and the Delegation of Authority to invest funds for the City must be adopted annually. The City’s Investment Policy insures the City is investing public funds in a manner which will provide the greatest security with the maximum investment return while meeting the daily cash flow demands of the entity and conforming to all state and local statutes governing the investment of public funds.

Staff is recommending that Council adopt the policy for fiscal year 2023-24 which has no changes from the prior year. The Investment Policy is attached.

Authority to manage the City’s investment program is derived from the City’s Charter. On November 21, 1983, Council delegated responsibility (Resolution 83-96) for the investment program to the Finance Director (Treasurer), who establishes written procedures for the operation of the investment program consistent with this investment policy. Procedures should include: safekeeping, repurchase agreements, wire transfer agreements, banking service contracts, and collateral/depository agreements. Such procedures shall include explicit delegation of authority to persons responsible for investment transactions. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the Treasurer.

The Treasurer shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials. Annually, Council will review and adopt by resolution the Investment Policy, in which Council will delegate responsibility for the investment program to the Finance Director/Treasurer.

Authority To Invest Funds
According to California Government Code Section 53607, the authority to invest funds of a local agency may Visalia City Council Page 1 of 2 Printed on 6/2/2023
powered by Legistar™453
File #: 23-0231 Agenda Date: 6/5/2023 Agenda #: 14.
be delegated for a one year period or until the delegation of authority is revoked. As in past years, staff recommends assigning Finance Director/Treasurer, Renee Nagel, with City investment responsibility.

City Investment Policy
It is the policy of the City to invest public funds in a manner which will provide the greatest security with the maximum investment return while meeting the daily cash flow demands of the entity and conforming to all state and local statutes governing the investment of public funds.

The City’s investments are diversified by the various maturities, call structures, and credit types which are allowed by the City’s Investment Policy and California Government Code Section 53600 et seq.

Annually, staff reviews the policy (as required) and proposes changes that reflect changes to the federal, state, and local investment statutes. This year there are no proposed changes to the Investment Policy.

Fiscal Impact:
n/a
Prior Council Action: The City of Visalia’s Investment Policy and the Delegation of Authority to invest funds for the City are adopted annually. Council last approved these items on June 20, 2022.

Other: n/a
Alternatives: n/a
Recommended Motion (and Alternative Motions if expected):

Move to approve Resolution No. 2023-21 adopting the City of Visalia’s annually updated Investment Policy and Delegating Authority to invest funds for the City to the Finance Director/Treasurer, Renee Nagel.

Environmental Assessment Status: n/a
CEQA Review: n/a
Attachments: Attachment #1, City of Visalia Investment Policy Attachment #2, City of Visalia Resolution 2023-21 approving the Investment Policy and Delegating Authority to the Finance Director/Treasurer
Visalia City Council Page 2 of 2 Printed on 6/2/2023
powered by Legistar™454
1 | P a g e

CITY OF VISALIA
Statement of Investment Policy

INTRODUCTION
The City of Visalia (The City) strives to maintain the level of investment of all funds as near 100% as possible through daily and projected cash flow determinations. Investments are made so maturities match or precede the cash needs of the City. The City will insure that principal invested is protected from loss while maintaining adequate cash availability and maximizing yield on invested funds.

The basic premise underlying the City's investment philosophy is to insure that money is always available when needed. A minimum amount of 6% of the adopted operating budget is maintained in immediately available investments, such as the State Treasurer's Local Agency Investment Fund or other cash equivalents. This may include commercial paper, banker's acceptances, or new repurchase agreements.

The City’s portfolio will be limited to an average life of three years or less. When the market warrants purchase of longer maturities to capture a higher rate of return, purchases will be limited to United States Treasury Notes and Bonds, Federal Agencies, Medium Term Notes, and Mortgage Backed Securities.

The City will attempt to ladder the portfolio with staggered maturities so that a portion of the portfolio will mature each year. In addition, the economy and various markets are monitored carefully to assess the probable course of interest rates. In a market with low or increasing interest rates, the City will attempt to invest in securities with shorter maturities. This makes funds available for other investments when the interest rates are higher. When interest rates appear to be near a relative high rate, the City will attempt to purchase investments with medium to long-term maturities to lock in the higher rate of return. When interest rates are falling, the City will invest in securities with longer maturities to hold the higher rate for a longer period of time.

The City will also take advantage of any new investment instrument that becomes eligible for municipal investment only after a detailed review of the investment, and its safety, liquidity and yield are completed.

1.0 Policy
It is the policy of the City to invest public funds in a manner which will provide the greatest security with the maximum investment return while meeting the daily cash flow demands of the entity and conforming to all state and local statutes governing the investment of public funds.

2.0 Scope
It is intended that this Investment Policy cover all funds and investment activities under the direct authority of the City organization.
455
2 | P a g e

3.0 Prudence
As a charter city, the City operates its pooled cash investments under the prudent investor rule.

Investments shall be made with the judgment and care, under the circumstances then prevailing which investors of prudence, discretion, and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived. This affords the City a broad spectrum of investment opportunities as long as the investment is deemed prudent and is allowable under current legislation of the State of California, the charter of the City, and this investment policy. Investments will be made in a range of instruments to insure diversification of the City's portfolio and liquidity of assets in an emergency situation.

3.1 The standard of prudence to be used by investment officials shall be the “prudent person” standard and shall be applied in the context of managing an overall portfolio. Investment officers acting in accordance with written procedures and the investment policy and exercising due diligence shall be relieved of personal responsibility for an individual security’s credit risk or market price changes, provided deviations from expectations are reported in a timely fashion and appropriate action is taken to control adverse developments. Future State of California legislative actions affecting this investment policy (adding further restrictions to the type and length of investments) shall not apply to those investments held prior to the enactment of said legislation unless specifically identified in the legislative action.

4.0 Objective
The primary objectives, in priority order, of the City of Visalia’s investment activities shall be:

4.1 Safety: Safety of principal is the foremost objective of the investment program. Investments of the City shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. The objective will be to mitigate credit risk and interest rate risk. a. Credit Risk, which is the risk of loss due to the failure of the security issuer or backer, will be minimized by:
• Limiting investments to the types of securities listed in Section 8.0 of this Investment Policy • Pre-qualifying the financial institutions, broker/dealers, intermediaries, and advisers with which the City will do business in accordance with Section 7.0 • Diversifying the investment portfolio so that the impact of potential losses from any one type of security or from any one individual issuer will be minimized. b. Interest Rate Risk, which is the risk that the market value of securities in the portfolio will fall due to changes in market interest rates, by:
• Structuring the investment portfolio so that securities mature to meet cash requirements for ongoing operations, thereby avoiding the need to sell securities on the open market prior to maturity
• Investing funds primarily in shorter-term securities, money market mutual funds, or similar investment pools and limiting the average maturity of the portfolio in accordance with this policy as outlined in Section 13.0.

4.2 Liquidity: The City’s investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirements which might be reasonably anticipated. 456
3 | P a g e

4.3 Return on Investments: The City’s investment portfolio shall be designed with the objective of attaining a rate of return throughout budgetary and economic cycles, commensurate with the City’s investment risk constraints and the cash flow characteristics of the portfolio. Securities shall generally be held until maturity with the following exceptions:
• A security with declining credit may be sold early to minimize loss of principal. • A security swap would improve the quality, yield, or target duration in the portfolio. • Liquidity needs of the portfolio require that the security be sold.

5.0 Delegation of Authority:

Authority to manage the City’s investment program is derived from the City’s Charter. On November 21, 1983 Council delegated responsibility (Resolution 83-96) for the investment program is to the Finance Director (Treasurer), who shall establish written procedures for the operation of the investment program consistent with this investment policy. Procedures should include reference to: safekeeping, repurchase agreements, wire transfer agreements, banking service contracts and collateral/depository agreements. Such procedures shall include explicit delegation of authority to persons responsible for investment transactions. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the Treasurer. The Treasurer shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials. Annually, Council will review and adopt by resolution the updated Investment Policy, in which Council will delegate responsibility for the investment program to the Treasurer.

6.0 Ethics and Conflicts of Interest
Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions. Employees and investment officials shall disclose to the Treasurer any material interests in financial institutions that conduct business within this jurisdiction, and they shall further disclose any large personal financial/investment positions that could be related to the performance of the City, particularly with regard to the time of purchases and sales.

7.0 Authorized Financial Dealers and Institutions:

The Treasurer will maintain a list of financial institutions authorized to provide investment services. In addition, a list will also be maintained of approved security broker/dealers selected by credit worthiness who are authorized to provide investment services in the State of California. These may include “primary” dealers or regional dealers that qualify under Securities & Exchange Commission Rule 15C3- 1 (uniform net capital rule). No public deposit shall be made except in a qualified public depository as established by State laws.

All financial institutions and broker/dealers who desire to become qualified bidders for investment transactions must supply the Treasurer with the following:
• Audited Financial Statements
• Proof of National Association of Security Dealers certification • Completed broker/dealer questionnaire
• Certification of having read this investment policy
• Compliance with City of Visalia insurance requirements for professional services agreements for general, professional and automotive liability.
457
4 | P a g e
An annual review of the financial condition and registrations of qualified bidders will be conducted by the Treasurer. In addition, a current audited financial statement is required to be on file for each financial institution and broker/dealer in which the City conducts investment transactions.

The City shall also be open to contracting investment management services for a portion of the portfolio.

That portion shall be limited to longer term investments of two years or longer. Any investment management firm contracted shall meet criteria established by the Treasurer. All investments made under contract will be purchased in the City's name and in accordance with the guidelines established by the City's investment policy.

8.0 Authorized and Suitable Investments
The City is empowered by statute to invest in the following types of securities. Any instrument not expressly permitted is prohibited. Specific limitations are provided on the maximum allowable percentage per investment category and further limitations by issuer within each investment category.

With the exception of insured and/or collateralized bank deposits, overnight repurchase agreements, U.S. Government securities, including its agencies and instrumentalities, and authorized pools, no more than 10% of the City’s aggregate investment portfolio may be invested in securities of a single issuer regardless of sector. Any percentage limitation for a particular category of investment is only applicable at the time of purchase.

A. Securities of the U.S. Government
Securities of the U.S. Government include U.S. Treasury bills, notes and bonds.

U.S. Treasury Bills - are issued by the U.S. Treasury and are available in maturities out to one year.

They are non-interest bearing and sold on a discount basis. The face amount is paid at maturity.

Treasury Notes - are issued by the U.S. Treasury with maturities from two to ten years. They are issued in coupon form and many issues are also available in registered form. Interest is payable at six month intervals until maturity.

Treasury Bonds - are issued by the U.S. Treasury with maturities of ten years to thirty years. The City may purchase the interest and/or principal of a U.S. Treasury Bond. A principal only instrument is commonly called a "stripped" or "zero" coupon. Stripped coupons are sold at a discount basis. The face amount is paid at maturity.

B. Securities of U.S. Government Agencies
The capital of U.S. government agencies was initially financed by the United States Treasury. As the agencies have grown and operated profitably over the years, the Treasury's investment has been replaced in a large measure by private capital. At the present time, obligations of only a few agencies are backed by the full faith and credit of the U.S. Government. The obligations of all the federal agencies described in the following sections are not guaranteed by the U.S. Government with the exception of Government National Mortgage Association, but are considered to be investments of the highest quality.

Federal National Mortgage Association - (Fannie Mae) Is a quasi- public corporation created by an act of Congress to assist the home mortgage market by purchasing mortgages insured by the Federal Housing Administration and the Farmers Home Administration, as well as those guaranteed by the Veterans Administration. FNMA issues Notes and Bonds. Notes are issued with maturities of less than one year with interest paid at maturity. Bonds are issued for 15 and 30 year maturities with interest paid semi-annually. Interest is computed on a 30/360 day basis. There is a strong secondary market in these securities. A secondary market means these instruments are actively traded; they are bought and sold daily.
458
5 | P a g e
Government National Mortgage Association - (Ginnie Mae) is a wholly owned corporate instrumentality of the United States within the Department of Housing and Urban Development. A certificate collateralized by FHA/VA residential mortgages represents a share in a pool of FHA or VA mortgages.

Ginnie Mae's are registered securities. Principal and interest are paid monthly and sent directly from the issuer of the pool, usually a mortgage banker, to the City. Original maturities range from 12 to 30 years with a 7 to 12 year assumed average life. (Assumed average life is due to prepayments of mortgages).

Federal Home Loan Banks - provide credit to member lending institutions such as savings and loan associations, cooperative banks, insurance companies and savings banks. The agency offers bonds in the public market with maturities of one year to ten years. These bonds are usually offered on a quarterly basis depending on the current demands of the housing industry. Interest is paid semiannually on a 30/360 day basis.

Federal Farm Credit Banks - are debt instruments issued to meet the financial needs of farmers and the national agricultural industry. Discount notes are issued monthly with 6 and 9 month maturities.

Discount notes pay interest at maturity. Longer term debentures (2-5 years) are also issued.

Debentures pay interest semi-annually on a 30/360 day basis. These issues enjoy an established secondary market.

Small Business Administration Loans - (SBA) The Small Business Administration is an independent agency of the United States government which furnishes financial and management assistance to small businesses. The SBA guarantees the principal portion of the loans it approves. The City purchases the guaranteed portion of these loans. Maturity can be for 1 year to 30 years. These loans can be either set at a fixed rate or variable rate which is usually tied to the prime rate. Principal and interest are paid monthly on a 30/360 day basis.

Federal Home Loan Mortgage Corporation - (Freddie Macs) A publicly held government-sponsored enterprise created on July 24, 1970 pursuant to the Federal Home Loan Mortgage Corporation Act, Title III of the Emergency Home Finance Act of 1970, as amended. Freddie Mac’s statutory mission is to provide stability in the secondary market for home mortgages, to respond appropriately to the private capital market and to provide ongoing assistance to the secondary market for home mortgages by increasing the liquidity of mortgage investments and improving the distribution of investment capital available for home mortgage financing. Maturity can be for 1 year to 30 years. These loans can be either set at a fixed rate or variable rate.

Other U.S. government securities available to the City for investment purposes include: Student Loan Marketing Association (SLMA or Sallie Mae), Aid for International Development (AID), and debentures of Tennessee Valley Authority (TVA). However, these instruments are not offered on a regular basis and do not offer the same liquidity as the before mentioned instruments.

C. Securities of the State of California or Its Sub-Divisions The State of California and its sub-divisions occasionally provide a good investment alternative, such as notes, bonds and other evidences of indebtedness. They are used to meet the financial needs of State, or other agencies of the State. These investments, during certain market conditions, can provide a higher yield even without the tax benefit that the private sector takes advantage of. The City will only purchase California securities with credit ratings of A or better by a nationally recognized rating agency; and with maturities of 5 years or less. Their interest is calculated on a 30/360 day basis like Agency bonds. Interest is paid semi-annually.
459
6 | P a g e
D. Time Deposits and Certificates of Deposit
Time Deposits are placed with commercial banks, savings association, or state or federal credit unions.

A time deposit is a receipt for funds deposited in a financial institution for a specified period of time at a specified rate of interest. Generally, the time is 3 months to 2 years. Denominations can be any agreed upon amount and interest is normally calculated using actual number of days on a 360-day year and paid monthly. Deposits are insured by the Federal Deposit Insurance Corporation (FDIC) currently up to $250,000 per institution and Certificates of Deposit can be supported by either 110% U.S.

Government agency notes or 150% mortgages currently held by the bank or savings and loan. An institution must meet the following criteria to be considered by the City:
• The institution must maintain a net worth to asset ratio of at least 3% and a positive earnings record. • The institution must make available a current FDIC call report or FHLB report. A call report presents the solvency of the institution to the agency with oversight responsibility of that institution.

E. Negotiable Certificates of Deposit
Negotiable Certificates of Deposit are a form of Certificate of Deposit which have been an important money market instrument since 1961 when commercial banks began issuing them and a secondary market developed to provide liquidity. Since these certificates of deposit can be traded in the secondary market, they are negotiable instruments, hence their name negotiable certificate of deposit. They are supported only by the strength of the institution from which they are purchased. Interest is paid semiannually computed on a 30/360 day basis. Maturities range from 3 months to 2 years. Negotiable Certificates of Deposit are generally issued in blocks of $1 million, $5 million, $10 million, etc.

The City will restrict its investments in Negotiable Certificates of Deposit to the 100 largest United States banks according to asset size. The profitability of the financial institution as well as its financial stability is also taken into account prior to placing the investment.

F. Banker's Acceptance Notes
A banker's acceptance (B.A.) is a unique credit instrument used to finance both domestic and international transactions. As a money market instrument, it is an attractive short-term investment.

When a bank "accepts" such a time draft, it becomes, in effect, a predated certified check payable to the bearer at some future, specified date. Little risk is involved because the commercial bank assumes primary liability once the draft is accepted. Banker's acceptances are frequently in odd amounts.

Maturities normally range from 30 up to 180 days. Banker's acceptances are sold at a discount. This means the face amount is received at maturity. The City will purchase Banker’s acceptances from only the 100 largest United States banks according to asset size. The profitability of the financial institution as well as its financial stability is also taken into account prior to placing the investment.

G. Commercial Paper
Commercial paper is the trade name applied to unsecured promissory notes issued by finance and industrial companies to raise funds on a short term basis. Commercial paper can be purchased on an interest bearing or discount basis. Interest bearing instruments pay interest semi-annually. Discounted instruments pay interest at maturity. The City will invest in commercial paper only if the paper attains the highest ranking or attains the highest letter and number rating as provided for by a nationally recognized statistical-rating organization (NRSRO). Maturities range from 30 to 180 days with interest computed on a 30/360 day basis.
460
7 | P a g e
H. Medium Term Notes
In recent years, this financing mechanism has grown, providing capital to the private sector, and diminishing the Negotiable Certificate of Deposit market. The trend towards medium term notes is related to buyer and seller flexibility and convenience. The notes are issued on any given date and maturing on a negotiated date. They generally range from 2 to 5 years in maturity. This market provides an excellent alternative to Negotiable C.D.'s. The City will only purchase Medium Term Notes with credit ratings of A or better by a nationally recognized rating agency; and with maturities of 5 years or less. Their interest is calculated on a 30/360 day basis like Agency bonds. Interest is paid semiannually.

I. Local Agency Investment Fund
The Local Agency Investment Fund (LAIF) was established by the State to enable treasurers to place funds in a pool for investment. The LAIF has been particularly beneficial to those jurisdictions with small portfolios. Each agency is limited to an investment of $75.0 million per account. The City uses this fund for short term liquidity, investment, and yield when rates are declining. Funds are available on demand and interest is paid quarterly.

J. Repurchase Agreement
Closely associated with the functioning of the Federal funds market is the negotiation of repurchase agreements or repo’s. Banks may buy temporarily idle funds from a customer by selling U.S.

Government or other securities with the contractual agreement to repurchase the same security on a future date determined by negotiation. For the use of funds, the customer receives an interest payment from the bank; the interest rate reflects both the prevailing demand for Federal funds and the maturity of the repo. Repurchase Agreements are usually executed for $100,000 or more. The City will require physical delivery of the securities backing the repo to its safekeeping agent. The institution from which the City purchases a repo must transfer on an ongoing basis sufficient securities to compensate for changing market conditions and to insure that the market value of securities is valued at 102 percent or greater of the funds borrowed against those securities. Generally, maturities range from 1 to 90 days with interest paid at maturity, and may not exceed one year. A Master Repurchase Agreement is required.

K. Reverse Repurchase Agreements
Reverse Repurchase Agreements, on the other hand simply reverses the above process of purchasing repurchase agreements. The City, in effect, sells a particular security to a firm for a stated period of time, not to exceed 92 days. Interest is paid at maturity. The City pays the firm interest on the cash it receives while receiving the interest on original security. The City will in turn purchase a short term security at a higher rate of interest. Reverse repurchase agreements may also be used to alleviate a temporary cash shortage. The City of Visalia will never utilize the reverse repurchase agreement in order to meet its cash needs. Reinvestment of reverse repurchases will be in securities of shorter or equal maturities to a reverse repurchase agreement. Reverse repurchase agreements cannot exceed 20% of the investment portfolio.

L. Money Market Mutual Funds
Money Market Mutual Funds are shares issued by diversified management companies who invest in the securities and obligations as authorized by subdivisions (a) to (j), inclusive, or subdivisions (m) or (n) of Government Code Section 53630 and comply with the investment restrictions of Article 2 (commencing with Section 53630 of the California Government Code). To be eligible for investment 461
8 | P a g e
pursuant to this subdivision, these companies shall either: (1) attain the highest ranking or the highest letter and numerical rating provided by not less than two nationally recognized rating services, or (2) have an investment adviser registered with the Securities and Exchange Commission with not less than five year's experience investing in the securities and obligations as authorized by subdivisions (a) to (j), inclusive, or subdivisions (m) or (n) of Government Code section 53630, and with assets under management in excess of five hundred million dollars ($500,000,000). The purchase price of shares purchased pursuant to this subdivision shall not include any commission that these companies may charge and shall not exceed 20 percent of the investment portfolio.

M. Investment Pools other than LAIF
Managed Investment Pool’s pursuant to California Government Code Section 53601 (p) for which shares of beneficial interest issued by a joint powers authority organized pursuant to California Government Code Section 6509.7 that invests in the securities and obligations authorized in subdivisions (a) to (q), inclusive. Each share shall represent an equal proportional interest in the underlying pool of securities owned by the joint powers authority. To be eligible under this section, the joint powers authority issuing the shares shall have retained an investment adviser that meets all of the following criteria:

1. The advisor is registered or exempt from registration with the Securities and Exchange Commission.

2. The advisor has not less than five years of experience investing in the securities and obligations authorized in subdivisions (a) to (q), inclusive.

3. The advisor has assets under management in excess of five hundred million dollars ($500,000,000).

9.0 Other Investment Pools:

A thorough investigation of investment pools, as authorized by statute, shall be conducted prior to the City’s investment. Any pool shall provide the following:
• A description of eligible investment securities, and a written statement of investment policy and objectives (i.e. are reserves, retained earnings, etc. utilized by the pool and is the pool eligible for bond proceeds and/or will it accept such proceeds)
• A description of interest calculations and distribution methods, and how gains and losses are treated • A description of how the securities are safeguarded (including the settlement processes), and how often securities are priced and the program audited
• A description of who may invest in the program
• A description of how deposits and withdrawals will be made, how often they are allowed and any minimum or maximum limitations
• A reporting schedule for receiving statements and portfolio activity • A fee schedule and method of assessment

10.0 Collateralization:

Collateralization will be required on two types of investments: certificates of deposit and repurchase (and reverse) agreements. Deposits are insured by the Federal Deposit Insurance Corporation (FDIC) currently up to $250,000 per institution and Certificates of Deposit can be supported by either 462
9 | P a g e
110% U.S. Government agency notes or 150% mortgages currently held by the bank or savings and loan.

11.0 Safekeeping and Custody:

Securities purchased with invested funds that are in a negotiable, bearer, registered, or nonregistered format, shall require delivery of all the securities to the City, including those purchased for the City by financial advisors, consultants, or managers using the City’s funds, by book entry, physical delivery, or by third party custodial agreement. The transfer of securities to the counterparty bank’s customer book entry account may be used for book-entry delivery.

To insure the safety and internal accounting controls necessary to establish a stable and accurate investment system, the City uses an investment confirmation document. This document is prepared by Treasury and approved by accounting personnel. Copies are also distributed to the City accounting department, Treasury investment file, and the institutions with which the order to transfer funds was placed (safekeeping). This transaction control document, or "Confirmation" form, contains information regarding the type of investment; amount invested; interest rate; purchase and maturity dates; and any delivery instructions. This confirmation is matched to the Broker's Confirmation and held in the Treasury's file until the security is sold or matures.

12.0 Diversification:

The City operates its investment pool with many State and self-imposed constraints. It does not buy stocks and it does not speculate. Currently Government Code Section 53600 (et seq) restricts the City portfolio to:
o 30% in Negotiable Certificates of Deposit o 40% in Bankers Acceptance Notes o 25% in Commercial Paper o 30% in Medium Term Notes
o 20% in Money Market Mutual Funds o 20% in Repurchase Agreements These restrictions primarily apply to short-term investments and are interpreted to apply at the time of investment. If, as the portfolio mix changes over time, a particular segment exceeds these restrictions the prudent investor rule shall apply.

The City will be selective in purchasing long-term negotiable certificates of deposit and medium term notes, placing such an investment only with a large stable institution.

13.0 Maximum Maturities
To the extent possible, the City will attempt to match its investments with anticipated cash flow requirements. The City will operate a portfolio with an average life of three years or less. This is to insure liquidity and the ability to move with changing markets and interest rates.

No investments shall be made in investments with maturities greater than five (5) years without specific Council approval not less than ninety days prior to the investment. Exception: Mortgage Backed Securities, such as Federal National Mortgage Association (Fannie Mae) and Government National Mortgage Association (Ginnie Mae) which have maturities greater than five (5) years, and not to exceed 30 years may be purchased. While the final maturity on these investments is greater than five (5) years, 463
10 | P a g e
the return of principal and interest is received on a monthly basis (as mortgages are being paid, refinanced, and pre-paid), therefore minimizing the investment risk. At no point, will investments with maturities greater than five (5) years exceed 20% of the portfolio value.

14.0 Internal Control
To assure compliance with policies and procedures, the Treasurer, along with finance staff, shall form an investment committee. The committee will meet to review the investment portfolio and collectively establish investment goals and parameters for purchases. The committee will also collectively decide on investment purchases and sales of holdings.

15.0 Performance Standards
The investment portfolio shall be designed with the objective of obtaining a rate of return throughout budgetary and economic cycles, commensurate with the investment risk constraints and the cash flow needs.

15.1 Market Yield (Benchmark): The City’s investment strategy is passive. Passive investment portfolio management generally indicates that the Treasurer will purchase an instrument and hold it through maturity, and then reinvest the monies. Although the City’s investment strategy is passive, this will not restrict the Treasurer from evaluating when swaps are appropriate or if the sale of an instrument is prudent prior to final maturity. Given this strategy, a series of appropriate benchmarks shall be established against which portfolio performance shall be compared on a regular basis. The benchmarks shall be reflective of the actual securities being purchased and risks undertaken and the benchmarks shall have a similar weighted average maturity as the portfolio.

16.0 Reporting
Quarterly, the Treasurer will issue a report for Council’s review of the City's current investment portfolio, detailing securities purchase and maturity date, face and market value, credit quality, and any reverse activities.

Periodically, the long-term investments will be reviewed in order to determine if it is advantageous to sell those securities and purchase others. The review will consider current market conditions and various spread relationships among security types. Additionally, a statement will be issued indicating the findings of the analysis. The monitoring of the conditions set forth in this policy statement is the responsibility of the Treasurer.

17.0 Investment Policy Adoption
The City’s investment policy shall be adopted by resolution. The policy shall be reviewed annually by the City Council and any modifications made thereto must be approved by them. 464
11 | P a g e
Exhibit A
City of Visalia - Summary of Eligible Investments
Type of Issue Original Maturities Interest Payments U.S. Govt.

Guaranteed?
_______________________________________________________________________ U.S. Treasury 91 day and 182 day Issued at a discount Yes Bills Bills auctioned each from par. Paid at
Monday for settlement maturity.
on Thursday.

52 week bills auctioned Discount is based on
every fourth Thursday the actual number of
for settlement on the days on a 360 day basis.
following Thursday. Paid at maturity.
________________________________________________________________________________ U.S. Treasury 2 to 10 years. Paid semi-annual based Yes Notes on the actual days in
the month and half-year.
________________________________________________________________________________ U.S. Treasury 10 to 30 years. Paid semi-annual based Yes Bonds on the actual days in
the month and half-year.

Strips or 10 to 30 years. Issued at a discount Yes
Zeros from par. Paid at
maturity on a 30/360
day basis.
________________________________________________________________________________ FNMA(Federal Discount notes are Issued at a discount No National Mortgage issued with maturities from par. Paid at Association) less than one year. maturity on a 30/360
day basis.

15 year and 30 year Principal and interest No
mortgage-backed paid semi-annually on a
securities with a 30/360 day basis.
7 and 15 year assumed
average life.
_________________________________________________________________________________ GNMA(Gov’t Various maturities Principal and interest Yes National Mortgage from 12 to 30 years paid monthly on a 30/360 Association) with an assumed day basis.
average life of
7 to 12 years.

______________________________________________________________________________ FHLB(Fed Home Bonds of maturities Paid semi-annually on No Loan Bank) from 1 to 10 years. 30/360 day basis.
465
12 | P a g e
Exhibit A
City of Visalia - Summary of Eligible Investments
Type of Issue Original Maturities Interest Payments U.S. Govt.

Guaranteed?
________________________________________________________________________________ FFCB(Fed Farm 6 and 9 month Paid at maturity No
Credit Bank) offered monthly. on a 30/360 day basis.

Debentures are Paid semi-annually No
issued with 2 to on a 30/360 day basis.
5 years maturities.
________________________________________________________________________________ SBA(Small Bus. Loans to Small Principal and interest No Administration) Businesses. The paid monthly. On a
principal portion 30/360 day basis. Can
of the loan is be a fixed or variable
guaranteed by the rate which is usually
SBA. 1 to 30 years. tied to prime rate.
________________________________________________________________________________ FHLMC(Fed. Home 30 year final with Principal and interest No Loan Mortgage 12 year assumed paid monthly on a 30/360
Corporation) average life. day basis.

California Securities Debentures are Paid semi-annually No issued with 2 to on a 30/360 day basis.
5 years maturities.
________________________________________________________________________________ CD(Certificate 3 months to 5 years. Paid monthly on a No of Deposit) actual/360 day basis.
________________________________________________________________________________ NCD(Negotiable 3 months to 2 years. Paid semi-annually. No Certificates of Some issues have Floaters pay quarterly.

Deposit) quarterly floating
rates.
________________________________________________________________________________ BA Notes(Banker's 30 to 180 days. Issued at a discount No Acceptance Notes) from par. Paid at
maturity.
__________________________________________________________________________________ Commercial Paper Unsecured promissory Can be interest bearing No note issued by finance or a discounted note.
and industrial companies If interest bearing,
to raise short term paid semi-annually. If
capital. Generally 30 discounted, paid at
to 180 days. maturity.
__________________________________________________________________________________ MTN(Medium Term 2 to 5 years. Paid semi-annually No
Notes) Extended maturity on a 30/360 day basis.
commercial paper.
___________________________________________________________________________________ LAIF(Local Agency Funds are available Paid quarterly. No Investment Fund) on demand. Investments
State Pool are restricted by Gov't.

Code, same as the City's.
466
13 | P a g e
Exhibit A
City of Visalia - Summary of Eligible Investments
Type of Issue Original Maturities Interest Payments U.S. Govt.

Guaranteed?
___________________________________________________________________________________ Repurchase Negotiated. Paid at maturity. No
Agreements A short term investment
transaction with a
contractual agreement
to repurchase the same
securities at a future
date. In essence, the
City loans the Bank
money for a specified
time collateralized by
marketable securities.

Terms are from 1
to 90 days.
_____________________________________________________________________________________ Reverse Negotiated. Paid at maturity. No
Repurchase This transaction
Agreements is the mirror image
of the repurchase
agreement. Instead
of the City loaning
the Bank money, the
Bank loans the City
funds. The City
then "repurchases"
securities with
matched maturities
to the end of the
contract. Terms are
from 1 to 90 days.
____________________________________________________________________________________ Money Market Funds are available Paid Monthly No
Mutual Funds on demand. Shares
issued by a diversified
management company.
____________________________________________________________________________________ Other Funds are available Paid quarterly No
Investment on demand.

Pools
467
14 | P a g e

GLOSSARY
AGENCIES: Federal agency securities

ANNUAL COMPREHENSIVE FINANCIAL
REPORT (Annual Financial Report): The
official annual report for the City of Visalia. It
includes five combined statements for each
individual fund and account group prepared in
conformity with GAAP. It also includes supporting
schedules necessary to demonstrate compliance
with finance-related legal and contractual
provisions, and a detailed Statistical Section.

ASKED: The price at which securities are
offered.

ARBITRAGE: Transactions by which securities
are bought and sold in different markets at the
same time for the sake of the profit arising from a
yield difference in the two markets.

BANKERS ACCEPTANCE (BA): A draft of bill
or exchange by a bank or trust company. The
accepting institution guarantees payment of the
bill, as well as the issuer.

BID: The price offered by a buyer of securities.
(When you are selling securities, you ask for a
bid.) See Offer.

BROKER: A broker brings buyers and sellers
together for a commission.

CERTIFICATE OF DEPOSIT (CD): A time
deposit with a specific maturity evidenced by a
certificate. Large-denomination CD’s are typically
negotiable.

COLLATERAL: Securities, evidence of deposit
or other property which a borrower pledges to
secure repayment of a loan. Also refers to
securities pledged by a bank to secure deposits
of public monies.

COUPON: (a) The annual rate of interest a
bond’s issuer promises to pay the bondholder on
the bond’s face value. (b) A certificate attached
to a bond evidencing interest due on a payment
date.

DEALER: A dealer, as opposed to a broker, acts
as a principal in all transactions, buying and
selling for his/her own account.

DEBENTURE: A bond secured only by the
general credit of the issuer.

DELIVERY VERSUS PAYMENT (DVP): There
are two methods of delivery of securities: delivery
versus payment and delivery versus receipt.

Delivery versus payment is delivery of securities
with an exchange of money for the securities.

Delivery versus receipt is delivery of securities
with an exchange of a signed receipt for the
securities.

DERIVATIVES: (1) Financial instruments whose
return profile is linked to, or derived from, the
movement of one or more underlying index or
security, and may include a leveraging factor, or
(2) financial contracts based upon notional
amounts whose value is derived from an
underlying index or security (interest rates,
foreign exchange rates, equities or commodities).

DISCOUNT: The difference between the cost
price of a security and its maturity when quoted at
lower than face value. A security selling below
original offering price shortly after sale also is
considered to be at a discount.

DISCOUNT SECURITIES: Non-interest bearing
money market instruments that are issued at a
discount and redeemed at maturity for full face
value, e.g. U.S. Treasury Bills.

DIVERSIFICATION: Dividing investment funds
among a variety of securities offering independent
returns.

FEDERAL CREDIT AGENCIES: Agencies of the
Federal government set up to supply credit to
various classes of institutions and individuals,
e.g., S&L’s, small business firms, students,
farmers, farm cooperatives, and exporters.

FEDERAL DEPOSIT INSURANCE
CORPORATION (FDIC): A federal agency that
insures bank deposits, currently up to $250,000
per deposit.

FEDERAL FUNDS RATE: The rate of interest at
which Fed funds are traded. This rate is currently
pegged by the Federal Reserve through openmarket operations.

FEDERAL HOME LOAN BANKS (FHLB):

Government sponsored wholesale banks
468
15 | P a g e
(currently 12 regional banks) which lend funds
and provide correspondent banking services to
member commercial banks, thrift institutions,
credit unions and insurance companies. The
mission of the FHLB’s is to liquefy the housing
related assets of its members who must purchase
stock in their district Bank.

FEDERAL NATIONAL MORTGAGE
ASSOCIATION (FNMA): FNMA, like GNMA was
chartered under the Federal National Mortgage
Association Act in 1938. FNMA is a federal
corporation working under the auspices of the
Department of Housing and Urban Development
(HUD). It is the largest single provider of
residential mortgage funds in the United States.

Fannie Mae, as the corporation is called, is a
private stockholder-owned corporation. The
corporation’s purchases include a variety of
adjustable mortgages and second loans, in
addition to fixed-rate mortgages. FNMA’s
securities are also highly liquid and are widely
accepted. FNMA assumes and guarantees that
all security holders will receive timely payment of
principal interest.

FEDERAL OPEN MARKET COMMITTEE
(FOMC): Consists of seven members of the
Federal Reserve Board and five of the twelve
Federal Reserve Bank Presidents. The President
of the New York Federal Reserve Bank is a
permanent member, while the other Presidents
serve on a rotating basis. The Committee
periodically meets to set Federal Reserve
guidelines regarding purchases and sales of
Government Securities in the open market and a
means of influencing the volume of bank credit
and money.

FEDERAL RESERVE SYSTEM: the central
bank of the United States created by Congress
and consisting of a seven member Board of
Governors in Washington, DC, 12 regional banks
and about 5,700 commercial banks that are
members of the system.

GENERALLY ACCEPTED ACCOUNTING
PRINCIPALS (GAAP): The standard established
by the National Council on Governmental
Accounting which establishes the minimum
requirements for a fair presentation of financial
data in external financial reports. GAAP also
assures a degree of comparability in financial
reporting among different governments.

GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION (GNMA or Ginnie Mae):

Securities influencing the volume of bank credit
guaranteed by GNMA and issued by mortgage
bankers, commercial banks, savings and loan
associations, and other institutions. Security
holder is protected by full faith and credit of the
U.S. Government. Ginnie Mae securities are
backed by the FHA, VA or FMHM mortgages.

The term “passthroughs” is often used to describe
Ginnie Mae's.

LIQUIDITY: A liquid asset is one that can be
converted easily and rapidly into cash without a
substantial loss of value. In the money market, a
security is said to be liquid if the spread between
bid and asked prices is narrow and reasonable
size can be done at those quotes.

LOCAL AGENCY INVESTMENT FUND: The
Local Agency Investment Fund (LAIF) was
established by the State to enable treasurers to
place funds in a pool for investments. The LAIF
has been particularly beneficial to those
jurisdictions with small portfolios. Each account is
limited to an investment of $75.0 million.

MARKET VALUE: The price at which a security
is trading and could presumably be purchased or
sold.

MASTER REPURCHASE AGREEMENT: A
written contract covering all future transactions
between the parties to repurchase—reverse
repurchase agreements that establishes each
party’s rights in the transactions. A master
agreement will often specify, among other things,
the right of the buyer-lender to liquidate the
underlying securities in the event of default by the
seller-borrower.

MATURITY: The date upon which the principal
or stated value of an investment becomes due
and payable.

MONEY MARKET: The market in which shortterm debt instruments (bills, commercial paper, bankers’ acceptances, etc.) are issued and
traded.

OFFER: The price asked by a seller of securities.
(When you are buying securities, you ask for an
offer.) See Asked and Bid.

OPEN MARKET OPERATIONS: Purchases and
sales of government and certain other securities
in the open market by the New York Federal
Reserve Bank as directed by the FOMC in order
to influence the volume of money and credit in the
469
16 | P a g e
economy. Purchases inject reserves into the
bank system and stimulate growth of money and
credit; sales have the opposite effect. Open
market operations are the Federal Reserve’s
most important and most flexible monetary policy
tool.

PORTFOLIO: Collection of securities held by an
investor.

PRIMARY DEALER: A group of government
securities dealers who submit daily reports of
market activity and positions and monthly
financial statements to the Federal Reserve Bank
of New York and are subject to its informal
oversight. Primary dealers include Securities and
Exchange Commission (SEC)-registered
securities broker-dealers, banks, and a few
unregulated firms.

PRUDENT PERSON RULE: An investment
standard. In some states the law requires that a
fiduciary, such as a trustee, may invest money
only in a list of securities selected by the custody
state--the so-called legal list. In other states the
trustee may invest in a security if it is one which
would be bought by a prudent person of
discretion and intelligence who is seeking a
reasonable income and preservation of capital.

QUALIFIED PUBLIC DEPOSITORIES: A
financial institution which does not claim
exemption from the payment of any sales or
compensating use or ad valorem taxes under the
laws of this state, which has segregated for the
benefit of the commission eligible collateral
having a value of not less than its maximum
liability and which has been approved by the
Public Deposit Protection Commission to hold
public deposits.

RATE OF RETURN: The yield obtainable on a
security based on its purchase price or its current
market price. This may be the amortized yield to
maturity on a bond the current income return.

REPURCHASE AGREEMENT (REPO): A holder
of securities sells these securities to an investor
with an agreement to repurchase them at a fixed
price on a fixed date. The security “buyer” in
effect lends the “seller” money for the period of
the agreement, and the terms of the agreement
are structured to compensate him for this.

Dealers use Repos extensively to finance their
positions. Exception: When the Fed is said to be
doing Repos, it is lending money, increasing bank
reserves.

SAFEKEEPING: A service to customers
rendered by banks for a fee whereby securities
and valuables of all types and descriptions are
held in the bank’s vaults for protection.

SECONDARY MARKET: A market made for the
purchase and sale of outstanding issues following
the initial distribution.

SECURITIES & EXCHANGE COMMISSION:

Agency created by Congress to protect investors
in securities transactions by administering
securities legislation.

SEC RULE 15C3-1: See Uniform Net Capital
Rule.

STRUCTURED NOTES: Notes issued by
Government Sponsored Enterprises (FHLB,
FNMA, SLMA, etc.) and corporations which have
imbedded options (e.g. call features, step-up
coupons, floating rate coupons, derivative-based
returns) into their debt structure. Their market
performance is impacted by the fluctuation of
interest rates, the volatility of the imbedded
options and shifts in the shape of the yield curve.

TREASURY BILLS: A non-interest bearing
discount security issued by the U.S. Treasury to
finance the national debt. Most bills are issued to
mature in three months, six months, and one
year.

TREASURY BONDS: Long-term coupon-bearing
U.S. Treasury securities issued as direct
obligations of the U.S. Government and having
initial maturities of more than 10 years.
470
17 | P a g e
TREASURY NOTES: Long-term coupon-bearing
U.S. Treasury securities issued as direct
obligations of the U.S. Government and having
initial maturities from two to 10 years.

UNIFORM NET CAPITAL RULE: Securities and
Exchange Commission requirement that member
firms as well as nonmember broker-dealers in
securities maintain a maximum ratio of
indebtedness to liquid capital of 15 to 1; also
called net capital rule and net capital ratio.

Indebtedness covers all money owed to a firm,
including margin loans and commitments to
purchase securities, one reason new public
issues are spread among members of
underwriting syndicates. Liquid capital includes
cash and assets easily converted into cash.

YIELD: The rate of annual income return on an
investment, expressed as a percentage. (a)
INCOME YIELD is obtained by dividing the
current dollar income by the current market price
for the security. (b) NET YIELD or YIELD TO
MATURITY is the current income yield minus any
premium above par or plus any discount from par
in purchase price, with the adjustment spread
over the period from the date of purchase to the
date of maturity of the bond.
471
RESOLUTION NO. 2023-xx

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF VISALIA

ADOPTING THE CITY INVESTMENT POLICY
WHEREAS, the Council of the City of Visalia has adopted the Statement of Investment Policy; and
WHEREAS, California Government Code section 53646 requires annual review and adoption of the Investment Policy; and
WHEREAS, the authority to manage the City’s investment program is derived from the City’s Charter; and
WHEREAS, California Government Code section 53607 requires the authority to invest the funds of the City to be delegated annually to the Finance Director/Treasurer,
NOW, THEREFORE, BE IT RESOLVED that the Council of the City of Visalia adopt the City of Visalia Statement of Investment Policy and delegate responsibility for the investment program to the Finance Director/Treasurer.

PASSED AND ADOPTED: LESLIE B. CAVIGLIA, CITY CLERK

STATE OF CALIFORNIA )
COUNTY OF TULARE ) ss.

CITY OF VISALIA )
I, Leslie B. Caviglia, City Clerk of the City of Visalia, certify the foregoing is the full and true Resolution ___________________ passed and adopted by the Council of the City of Visalia at a regular meeting held on ___________________.

Dated: Leslie B. Caviglia, CITY CLERK
By Michelle E. Nicholson, Chief Deputy City Clerk
472
Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 23-0234 Agenda Date: 6/5/2023 Agenda #: 15.

Agenda Item Wording:

Request authorization to record the final parcel map for Tentative Parcel Map No. 2023-02, located at the southwest corner of West Kibler Avenue and North Plaza Drive (APN: 077-120-017).

Deadline for Action: 6/5/2023
Submitting Department: Community Development
Contact Name and Phone Number:

Keyshawn Ford, Assistant Engineer, [email protected] <mailto:[email protected]> , (559) 713,4268
Lupe Garcia, Civil Engineer, [email protected] <mailto:[email protected]>, (559) 713- 4197
Jason Huckleberry, Asst. Com. Dev. Director, [email protected] <mailto:[email protected]>, (559) 713-4495 Paul Bernal, Community Development Director, [email protected] <mailto:[email protected]>, (559) 713-4025
Department Recommendation:

Staff recommends that the City Council authorize the recordation of the final parcel map for Tentative Parcel Map No. 2023-02.

Summary:

Tentative Parcel Map No. 2023-02 is a request to subdivide a 155.88-acre parcel into four parcels in the Industrial Zone. There is currently no proposed development for Parcels 1-3; however, there is an approximately 1,270,750 square foot industrial warehouse being proposed on Parcel 4 with the building permits currently under review by the Community Development Department.

Background Discussion:

The 155.88-acre site is located at the southwest corner of North Plaza Drive and West Kibler Avenue (i.e., Avenue 320) and had previously been used for agriculture. The area subject to this parcel map was annexed and added into the City limits on February 6, 2008. The final parcel map is dedicating portions of right-of-way for American Street and Kibler Avenue, which are collector and arterial streets respectively, as defined by the City’s Circulation Element.

The owner of the site, CRP LDF Central Point III California, LLC, has submitted plans for the development of a 1,270,750 square foot industrial warehouse on Parcel 4 of this final map under Building Permit No. B226646. In addition, per the approved Site Plan Review No. 2022-178, frontage improvements along Plaza Drive and American Street are required with this phase of development with the plans currently being reviewed under Building Permit No. B231217. The improvements along Plaza Drive will include sidewalk, parkway, curb, gutter, streetlights, pavement, street striping, and median improvements at the future Plaza Drive and West Riverway Avenue intersection. The improvements on American Street will include sidewalk, curb, gutter, and parkway with pavement to Visalia City Council Page 1 of 2 Printed on 6/2/2023
powered by Legistar™473
File #: 23-0234 Agenda Date: 6/5/2023 Agenda #: 15.
improvements on American Street will include sidewalk, curb, gutter, and parkway with pavement to be installed at a later date. The improvements along Kibler Avenue are deferred until the future development of Parcels 1, 2, and 3.

Pursuant to Title 16 (Subdivisions) of the Visalia Municipal Code, the City’s authorization 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 “if the Council determines that the map is in conformity with the requirements of this Chapter, the Council shall approve the map.” 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’s recommendation is that the City Council authorize 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 Landscape and Lighting assessment districts required for this final parcel map.

Prior Council Action: N/A
Other:
· Annexation No. 2007-01 was recommended for approval to the City Council by the Planning Commission on July 9, 2007.
· Tentative Parcel Map No. 2023-02 was approved by the Planning Commission on February 13, 2023.

Alternatives: None Recommended
Recommended Motion (and Alternative Motions if expected):

I move to authorize the recordation of the final parcel map for Tentative Parcel Map No. 2023-02.

Environmental Assessment Status: N/A
CEQA Review:

Categorically Exempt pursuant to CEQA Guidelines Section 15315, Categorical Exemption No 2023-

03. Attachments:
1) Final Parcel Map
2) Location Map
3) Aerial Map
4) Development Disclosure
Visalia City Council Page 2 of 2 Printed on 6/2/2023
powered by Legistar™474
4694 W JACQUELYN AVE., # 101, FRESNO, CA 93722
PHN: (559) 840-2782 WWW.PRAXISLANDSURVEYING.COM
JOB NO. 22007 SHEET 1 OF 2

LAND SURVEYING
PRAXIS

COUNTY RECORDER'S STATEMENT
DOCUMENT NO. _____________________ FEE PAID:____________ FILED THIS _________ DAY OF ___________, 20_____ AT ___________ M., IN BOOK ________ OF PARCEL MAPS, AT PAGE__________, TULARE COUNTY RECORDS, AT THE REQUEST OF CAPROCK PARTNERS.

TARA K. FREITAS, CPA

TULARE COUNTY ASSESSOR/CLERK-RECORDER
BY: _________________________________
DEPUTY
PARCEL MAP NO.

A SUBDIVISION OF A PORTION OF THE NORTHWEST QUARTER OF SECTION 17, T.18S., R.24E., M.D.B.&M., IN THE CITY OF VISALIA, COUNTY OF TULARE, STATE OF CALIFORNIA.

CONSISTING OF 2 SHEETS, SHEET 1 OF 2

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.

STATE OF CALIFORNIA }
COUNTY OF _____________ }
ON ____________________________ BEFORE ME, _________________________________________, 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/HER/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 PARAGRAPH IS TRUE AND CORRECT, WITNESS MY HAND.

NAME__________________________________________ SIGNATURE__________________________________________ MY COMMISSION EXPIRES________________________ COUNTY OF__________________________________________ COMMISSION NUMBER___________________________
(NO NOTARY SEAL REQUIRED PURSUANT TO SEC. 66436 (C) OF THE SUBDIVISION MAP ACT.) TPM NO. 2023-02

NO SCALE
99 198 198

VISALIA

MUNICIPAL

AIRPORT

W RIGGIN AVE
W GOSHEN AVE N PLAZA DR RD 92

SURVEYOR'S STATEMENT

THIS MAP WAS PREPARED BY ME OR UNDER MY DIRECTION AND IS BASED UPON A FIELD

SURVEY IN CONFORMANCE WITH THE REQUIREMENTS OF THE SUBDIVISION MAP ACT AND LOCAL ORDINANCE AT THE REQUEST OF CAPROCK PARTNERS IN JANUARY 2023 AND SAID FIELD SURVEY IS TRUE AND COMPLETE AS SHOWN. I HEREBY STATE THAT THIS PARCEL MAP

SUBSTANTIALLY CONFORMS TO THE APPROVED OR CONDITIONALLY APPROVED TENTATIVE MAP, IF ANY. ALL MONUMENTS ARE OF THE CHARACTER AND OCCUPY, OR WILL OCCUPY,

THE POSITIONS INDICATED ON OR BEFORE ONE YEAR FROM THE DATE THIS MAP IS RECORDED AND ARE, OR WILL BE, SUFFICIENT TO ENABLE THE SURVEY TO BE RETRACED. _____________________________________________ ___________________ CHRISTOPHER T. MUZNY, P.L.S. 9188 DATE

CITY SURVEYOR'S STATEMENT
I HEREBY STATE THAT I HAVE EXAMINED THIS MAP; THAT THE SUBDIVISION AS SHOWN IS

SUBSTANTIALLY THE SAME AS IT APPEARED ON THE TENTATIVE MAP, AND ANY APPROVED ALTERATIONS THEREOF; THAT ALL PROVISIONS OF CHAPTER 2 OF THE SUBDIVISION MAP

ACT AND ANY LOCAL ORDINANCES APPLICABLE AT THE TIME OF APPROVAL OF THE TENTATIVE MAP HAVE BEEN COMPLIED WITH; AND THAT I AM SATISFIED THAT THIS MAP IS TECHNICALLY CORRECT.
_____________________________________________ ___________________ MICHAEL E. LONG, P.L.S. 6815 DATE

CITY CLERK'S STATEMENT

THIS TO STATE THAT AT A REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF VISALIA HELD ON THE _______DAY OF ________________________, 20___, AN ORDER WAS DULY AND

REGULARLY MADE AND ENTERED INTO APPROVING THIS MAP AND SUBDIVISION AND, ON

BEHALF OF THE PUBLIC, ACCEPTING, SUBJECT TO IMPROVEMENT, THE RIGHT OF WAY FOR

KIBLER AVENUE, AMERICAN STREET, PLAZA DRIVE AND THE DRAINAGE EASEMENTS, PEDESTRIAN ACCESS EASEMENTS AND PUBLIC UTILITY EASEMENTS; AND REJECTING THE

IRREVOCABLE OFFER OF DEDICATION IN FEE TO THE CITY OF VISALIA AS SHOWN HEREON AND DESIGNATED AS “IRREVOCABLE OFFER OF DEDICATION IN FEE” TO HEREAFTER REMAIN

AN IRREVOCABLE OFFER OF DEDICATION IN FEE UNTIL ACCEPTED OR ABANDONED BY

SEPARATE RESOLUTION OF THE CITY COUNCIL, ALL INCLUDED WITHIN THE BOUNDARIES OF THE SUBDIVISION AND AS SHOWN AND/OR STATED UPON THE MAP.

WITNESS MY HAND AND OFFICIAL SEAL OF THE CITY OF VISALIA THIS _____ DAY OF _________________, 20___.

LESLIE B. CAVIGLIA, CITY MANAGER/CITY CLERK
_____________________________________________ CHIEF DEPUTY CITY CLERK

BOARD OF SUPERVISOR'S STATEMENT
I, JASON T. BRITT, COUNTY ADMINISTRATIVE OFFICER/CLERK OF THE BOARD OF

SUPERVISORS OF THE COUNTY OF TULARE, STATE OF CALIFORNIA, DO HEREBY STATE THE

SAID BOARD OF SUPERVISORS HAS APPROVED THE PROVISIONS MADE FOR THE PAYMENT OF TAXES AS PROVIDED IN DIVISION 2 OF TITLE 7 OF THE GOVERNMENT CODE OF THE STATE OF CALIFORNIA.

DATED THIS _____ DAY OF _________________, 20___.

JASON T. BRITT, TULARE COUNTY ADMINISTRATIVE

OFFICER/CLERK OF THE BOARD OF SUPERVISORS
_____________________________________________ DEPUTY CLERK

KIBLER AVE AMERICAN ST

VICINITY MAP

NOTARY ACKNOWLEDGMENT

CITY PLANNER'S STATEMENT
I HEREBY STATE THAT THIS PARCEL MAP CONFORMS TO THE TENTATIVE PARCEL MAP NO. 2023-02 APPROVED BY THE CITY OF VISALIA PLANNING COMMISSION AT THE REGULAR MEETING HELD ON FEBRUARY 13, 2023. PAUL BERNAL, COMMUNITY DEVELOPMENT DIRECTOR AND CITY PLANNER BY:_____________________________________ _________________ DATE

OWNER'S STATEMENT

THE UNDERSIGNED HEREBY CERTIFY THAT THEY ARE THE ONLY PERSONS HAVING ANY RECORD TITLE INTEREST IN

THE REAL PROPERTY INCLUDED WITHIN THE BOUNDARIES OF THE SUBDIVISION SHOWN UPON THIS MAP, AND DO

HEREBY CONSENT TO THE PREPARATION AND RECORDING OF SAID MAP AND THAT THE CONSENT OF NO OTHER PERSON IS NECESSARY. WE HEREBY OFFER FOR DEDICATION AND DO HEREBY DEDICATE THE FOLLOWING, AS SHOWN WITHIN THE BOUNDARIES OF THE MAP HEREON, FOR THE SPECIFIED PURPOSES:

1. RIGHT OF WAY FOR KIBLER AVENUE, AMERICAN STREET, AND PLAZA DRIVE IN FEE TO THE CITY OF VISALIA.

2. PUBLIC EASEMENTS FOR THE INSTALLATION AND MAINTENANCE OF GAS LINES AND CONDUITS FOR ELECTRIC,

TELEVISION AND TELEPHONE SERVICES, TOGETHER WITH ANY AND ALL APPURTENANCES PERTAINING THERETO, AS SHOWN HEREON AND DESIGNATED AS “PUE” (PUBLIC UTILITIES EASEMENT).

3. PEDESTRIAN ACCESS EASEMENT TO THE CITY OF VISALIA, AS SHOWN HEREON AND DESIGNATED AS “PE” (PEDESTRIAN EASEMENT).

4. DRAINAGE EASEMENT TO THE CITY OF VISALIA, AS SHOWN HEREON AND DESIGNATED AS “DE” (DRAINAGE EASEMENT).

5. CANAL ACCESS EASEMENT TO MODOC DITCH, AS SHOWN HEREON AND DESIGNATED AS “CAE” (CANAL ACCESS EASEMENT).

CRP LDF CENTRAL POINT III CA, LLC, A DELAWARE LIMITED LIABILITY COMPANY _____________________________________________ ___________________ PATRICK DANIELS, CHIEF EXECUTIVE OFFICER DATE

SUBJECT

PROPERTY CITY LIMITS CITY LIMITS

CITY LIMITS

FLOOD HAZARD ZONE
AS DELINEATED ON THE FEDERAL EMERGENCY MANAGEMENT AGENCY’S FLOOD INSURANCE RATE MAP (MAP NUMBER 06107C0910E) FOR COMMUNITY NO. 060409, CITY OF VISALIA, CALIFORNIA, TULARE COUNTY, EFFECTIVE JUNE 16, 2009, THE PROPERTY SHOWN ON THIS MAP LIES PARTIALLY WITHIN FLOOD ZONE AREAS DESIGNATED ZONE X (UNSHADED) AND ZONE X (SHADED). THESE AREAS ARE AS DEFINED BELOW AND SHOWN GRAPHICALLY HEREON ON SHEET 2.

ZONE X (UNSHADED), WHICH ARE AREAS OUTSIDE OF 0.2% ANNUAL CHANCE FLOODING.

ZONE X (SHADED), WHICH ARE AREAS OF 0.2% ANNUAL CHANCE FLOODING, AREAS OF 1% ANNUAL CHANCE FLOODING WHERE AVERAGE DEPTHS ARE LESS THAN 1 FOOT, AREAS OF 1% ANNUAL CHANCE FLOODING WHERE THE CONTRIBUTING DRAINAGE AREA IS LESS THAN 1 SQUARE MILE, AND AREAS PROTECTED FROM THE 1% ANNUAL CHANCE FLOOD BY LEVEES.

MODOC DITCH COMPANY STATEMENT
ACCEPTANCE OF THE CANAL ACCESS EASEMENT TO MODOC DITCH COMPANY, AS SHOWN HEREON ON SHEET 2 AND DESIGNATED AS “CAE” (CANAL ACCESS EASEMENT).
_____________________________________________ ___________________ SIGNED DATE _____________________________________________ PRINT NAME / TITLE 475
253.95'

6.00' EASEMENT FOR POLE LINES AND UNDERGROUND

CONDUITS GRANTED TO SOUTHERN CALIFORNIA EDISON
COMPANY PER BOOK 2708, PAGE 135, O.R.T.C.

10.00' EASEMENT FOR POLE LINES AND UNDERGROUND

CONDUITS GRANTED TO SOUTHERN CALIFORNIA EDISON
COMPANY PER BOOK 2708, PAGE 135, O.R.T.C.

N0°03'28"E 2649.79' (N0°03'36"E 2649.65')R2 1257.09' 1311.67' 1148.08' 1299.79' S89°42'11"E 2630.83' (S89°42'12"E 2630.55')R2 BASIS OF BEARINGS N0°00'34"E 2640.23' (N0°00'34"E 2640.27')R1 (N0°00'36"E 2640.25')R2 N89°54'41"W 2633.03' (N89°54'29"W 2632.82')R2

ZONE X (UNSHADED)

ZONE X (SHADED)
588.75' 970.05' 991.17'
970.07' 408.34' 560.39'
N89°42'11"W 1938.80'
2523.03'
N89°59'27"W 2549.97'
N46°23'08"E

37.31' N0°03'28"E 2568.76' N0°00'05"W 1334.59' N0°00'05"W 1329.72' 2490.70'
2593.03' 2624.79' N0°00'34"E 2560.42'
309.00'
C.A.D.E.

38.19'

24.81'

63.00' C.A.D.E.

S87°10'58"E 250.25' S89°42'11"E 318.92' 294.24'

73.65± AC
PARCEL 4

18.03± AC
PARCEL 1

29.67± AC
PARCEL 2

30.09± AC
PARCEL 3
S0°00'34"W 30.00'
(N0°00'34"E 30.00')D1
S89°42'11"E 85.26'
(N89°42'08"W 85.26')D1
S30°44'13"E 29.12'
(N30°44'13"W 29.11')D1
S45°23'26"E 19.97'
S89°42'11"E 318.92'
4694 W JACQUELYN AVE., # 101, FRESNO, CA 93722
PHN: (559) 840-2782 WWW.PRAXISLANDSURVEYING.COM
JOB NO. 22007 SHEET 2 OF 2

LAND SURVEYING
PRAXIS
PARCEL MAP NO.

A SUBDIVISION OF A PORTION OF THE NORTHWEST QUARTER OF SECTION 17, T.18S., R.24E., M.D.B.&M., IN THE CITY OF VISALIA, COUNTY OF TULARE, STATE OF CALIFORNIA.

CONSISTING OF 2 SHEETS, SHEET 2 OF 2
TPM NO. 2023-02
#

FOUND MONUMENT AS DESCRIBED
SET 3/4" X 30" IRON PIPE, TAGGED PLS 9188, UNLESS NOTED OTHERWISE.

MONUMENT REFERENCE NUMBER

IRREVOCABLE OFFER OF DEDICATION FOR RIGHT OF WAY IN FEE TO THE CITY OF

VISALIA PER THIS MAP

DEDICATION FOR RIGHT OF WAY IN FEE TO THE CITY OF VISALIA PER THIS MAP

EXISTING STREET RIGHT OF WAY PREVIOUSLY DEDICATED PER RIGHT OF WAY DEED RECORDED IN BOOK 58 AT PAGE 13, O.R.T.C.

EXISTING STREET RIGHT OF WAY PREVIOUSLY DEDICATED PER RIGHT OF WAY DEED RECORDED IN BOOK 652 AT PAGE 204, O.R.T.C.

EXISTING STREET RIGHT OF WAY PREVIOUSLY DEDICATED PER GRANT DEED RECORDED AS INSTRUMENT NO. 2008-0058235, O.R.T.C.
(R1) * RECORD DATA PER RECORD OF SURVEY BK. 30, PG. 24, T.C.R. (R2) * RECORD DATA PER RECORD OF SURVEY BK. 25, PG. 65, T.C.R. (D1) RECORD DATA PER GRANT DEED, INST. NO. 2008-0058235, O.R.T.C.

D.E. DRAINAGE EASEMENT IN FAVOR OF THE CITY OF VISALIA PER THIS MAP P.E. PEDESTRIAN ACCESS EASEMENT IN FAVOR OF THE CITY OF VISALIA PER THIS MAP P.U.E. PUBLIC UTILITY EASEMENT IN FAVOR OF THE CITY OF VISALIA PER THIS MAP C.A.E. CANAL ACCESS EASEMENT IN FAVOR OF MODOC DITCH COMPANY PER THIS MAP C.A.D.E. CROSS ACCESS AND DRAINAGE EASEMENT IN FAVOR OF PARCELS 3 AND 4 T.C.R. TULARE COUNTY RECORDS
O.R.T.C. OFFICIAL RECORDS TULARE COUNTY

SECTION LINE

QUARTER SECTION LINE

SIXTEENTH SECTION LINE

PROPOSED PARCEL LINE

CENTERLINE

RIGHT OF WAY LINE

EASEMENT LINE

FLOOD HAZARD ZONE LINE

TOP OF BANK, MODOC DITCH

DIMENSION OR TIE LINE

SUBDIVISION BOUNDARY
* RECORD DISTANCES AND BEARINGS ARE AS SHOWN OR NOTED IN THE DOCUMENT BEING REFERENCED. REFER TO THE DOCUMENT ITSELF TO DETERMINE IF THE RECORD DIMENSION IS EXPRESSED IN GRID OR GROUND UNITS. ALL RECORD DISTANCES IN GRID UNITS USED FOR ESTABLISHMENT PURPOSES WERE FIRST CONVERTED TO GROUND.

LEGEND
1 201 FOUND 1" IRON PIPE, UP 2", TAGGED LS 4714, ACCEPTED AS THE WEST QUARTER CORNER OF SECTION 17, T.18S., R.24E., M.D.B.&M., AS SHOWN ON (R2) FOUND TULARE COUNTY CORNER, 2" BRASS CAP DOWN 14", ILLEGIBLE, ACCEPTED AS THE NORTHWEST CORNER OF SECTION 17, T.18S., R.24E., M.D.B.&M., AS SHOWN ON (R2) FOUND TULARE COUNTY CORNER, 2" BRASS CAP FLUSH, STAMPED LS 7027, ACCEPTED AS THE NORTH QUARTER CORNER OF SECTION 17, T.18S., R.24E., M.D.B.&M., PER (R1) FOUND TULARE COUNTY CORNER, 2" BRASS CAP FLUSH, STAMPED LS 7027, ACCEPTED AS THE CENTER QUARTER CORNER OF SECTION 17, T.18S., R.24E., M.D.B.&M., PER (R1) 203
THE EAST LINE OF THE NORTHWEST QUARTER OF SECTION 17,
T.18S., R.24E., M.D.B.&M., AS SHOWN ON THE RECORD OF SURVEY RECORDED IN BOOK 30 OF LICENSED SURVEYS AT PAGE 24, TULARE COUNTY RECORDS, AND IS TAKEN TO BEAR: NORTH 0° 00' 34" EAST

MONUMENT DESCRIPTIONS

BASIS OF BEARINGS
0'
SCALE:1"=200'
200' 200' 400'
207
208
201
203
2 3

40.00'

40.00'
2 2
207
208
1 25.00' 25.00' 1 3

30.00'

30.00'

6.00' P.U.E.

31.00' D.E.

42.00'

6.00' P.U.E.

31.00' D.E.

42.00'

6.00' P.U.E.

31.00' D.E.
1617.62' C.A.E.

15.00' C.A.E.

4.00' P.E.

10.00' P.U.E.

39.00' D.E.

4.00' P.E.

35.00' D.E. COUNTY OF TULARE CITY OF VISALIA

39.00' D.E.

DEDICATION DETAIL

NO SCALE

39.00' D.E.

10.00'

10.00' P.U.E.

4.00' P.E.

28.00'

SEE DEDICATION

DETAIL, THIS SHEET
1316.51' 618.26'

6.00' P.U.E.

31.00' D.E.

D ET A IL , S C A LE 1" = 5 0 '
PARCEL 3
3 1
2 40.35' 83.46' S0°00'34"W
S43°57'15"W

28.00'

10.00' P.U.E.

10.00' P.U.E. 112.55'
476
0 1,000 500
Feet
±
Coordinate System: WGS 1984 Web Mercator Auxiliary Sphere 2023
Esri, CGIAR, USGS
Location Map
TPM23-02
Modoc Ditch
Riggin Ave 308 Ferguson Rd 76 P al za Kelsey
A
merican Ave 312
Betty
Ave 320 Plaza
Ave 320 Kibler SUBJECT SITE
City Limits
477
0 1,000 500
Feet
±
Coordinate System: WGS 1984 Web Mercator Auxiliary Sphere 2023
Nearmap US, Esri, CGIAR, USGS
Aerial Map
TPM23-02
Caldwell
Walnut
Hwy 198 Noble
H Goshen
wy 9
Modoc Ditch
Riggin Ke sl ey Ave 320
Ave 312
Ave 320
Plaza Kibler SUBJECT SITE
478
479
480
Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 23-0224 Agenda Date: 6/5/2023 Agenda #: 16.

Agenda Item Wording:

Consider adoption of Resolution 2023-19 requesting to participate in the Department of Water Resources Temporary Flood Diversion Equipment & Recharge Enhancement Initiative and appropriate $560,000 to be fully reimbursed by The Department of Water Resources.

Submitting Department: Administration
Contact Name and Phone Number: Rhett Anderson, (559) 713-4530 Department Recommendation: It is the recommendation of staff that the Visalia City Council to adopt Resolution 2023-19 to receive funding from the Department of Water Resources and appropriate $560,000 for groundwater improvement and to reduce flooding in the Tulare Lake Bottom.

Background Discussion: Department of Water Resources (DWR) is actively working with local agencies and equipment vendors to secure temporary flood diversion equipment - pumps and siphons - that can divert high flows off of rivers and move them to recharge areas managed by local agencies. On April 25, 2023, the first set of temporary pumps were deployed to Fresno Irrigation District <https://www.fresnoirrigation.com/>where they are pumping water to divert Kings River flows away from the Tulare Lake Region to lessen flood conditions. The temporary flood diversion equipment provided through DWR’s facilitation efforts will help reduce flood risk and benefit communities that rely on groundwater wells in shallow aquifers by recharging the groundwater basins.

The reimbursement program would provide financial assistance to organizations willing to invest in temporary floodwater diversion. Funding available is exclusively designated for local agencies who are willing and able to temporarily divert surface water that may reduce the volume of water that is entering the Tulare Lake and improve groundwater conditions in heavily over-drafted groundwater basins.

1. Groundwater Recharge: The primary objective of the reimbursement program is to utilize the diverted floodwater for groundwater recharge. The City of Visalia, like many other regions, faces challenges related to groundwater depletion. By strategically recharging groundwater through floodwater diversions, the program will contribute to the sustainable management of water resources in the long term.

2. Flood Management: Another crucial objective of the program is to enhance flood management capabilities within the City of Visalia. By diverting floodwater, the program aims to mitigate flood risks, safeguard infrastructure, and protect residents and their properties from the detrimental effects of flooding. Tulare Lake Bottom has been outlined as a priority for the program.

Visalia City Council Page 1 of 3 Printed on 6/2/2023
powered by Legistar™481
File #: 23-0224 Agenda Date: 6/5/2023 Agenda #: 16.

Program Benefits

1. Flood Risk Reduction: By investing in floodwater diversion infrastructure, the City of Visalia can significantly reduce the risk of flooding in vulnerable areas. This will enhance the safety and well-being of residents, protect critical infrastructure, and minimize potential economic losses associated with flooding events.

2. Groundwater Sustainability: The program presents a unique opportunity to recharge a substantial amount of groundwater. Given the dependence on groundwater resources in the City of Visalia, this initiative will contribute to replenishing depleted aquifers and ensuring the long-term availability of reliable water supplies.

3. Cost Savings: Implementing floodwater diversion projects will result in cost savings for the City of Visalia. By preventing flood damage to public and private property, the need for post-flood recovery efforts, emergency response, and infrastructure repairs will be significantly reduced.

This will alleviate the financial burden on the city and its residents.

4. Environmental Benefits: Floodwater diversions can provide numerous environmental benefits.

Recharging groundwater helps maintain streamflow, supports aquatic ecosystems, and improves water quality. Additionally, by diverting floodwater away from urban areas, the program will reduce the impact of pollutants and contaminants on the city's waterways.

The City would utilize this program to divert water into three strategic locations. Fortunately, all three locations have either historically accepted surface water, or have been specifically engineered to capture and retain surface flows. Two of the floodwater recharge areas are located at the future planned site for the Eastside Regional Park. The two fields adjacent to Mill Creek on both north and south sides can be fitted with a pump that can draw water directly from Mill Creek. The third site is currently being utilized by the City for recharge with the use of power take-off driven pumps provided by the City’s current farm manager, Jeb Headrick. This program can be used to replace the current pumps located at Peoples Basin near Woodlake, CA. This City owned property can also be filled using a single large diameter trash pump, which would divert water directly from the Lower Kaweah River. Please see the attached application that was submitted to DWR on May 8th, 2023 for exact locations of the proposed areas. The application was approved by Cal OES, who tasked DWR to support the City with this project on May 19th, 2023.

Should the council move to adopt Resolution 2023-19, it is also the request of staff that Visalia City Council appropriate $560,000 for the rental fees, fuel costs, and installation of equipment. These costs will be incurred between June 2023 and November 2023. All rental, fuel, installation, mobilization, and demobilization costs are to be %100 reimbursed by the Department of Water Resources, as outlined in the attached document.

The reimbursement program for floodwater diversions proposed through the Department of Water Resources offers a unique opportunity for the City of Visalia to address flood management challenges in the area while simultaneously recharging groundwater resources. By investing in floodwater diversion infrastructure, the City will experience various benefits, including reduced flood risks, enhanced groundwater sustainability, cost savings, and improved environmental conditions.

Considering the advantages outlined above, implementing this program is strongly recommended. It aligns with the city's long-term vision for water resource management, fosters environmental Visalia City Council Page 2 of 3 Printed on 6/2/2023
powered by Legistar™482
File #: 23-0224 Agenda Date: 6/5/2023 Agenda #: 16.
stewardship, and promotes resilience in the face of changing climatic conditions. By seizing this opportunity, the City of Visalia can set an example for other communities facing similar challenges and contribute to a more sustainable and prosperous future.

Fiscal Impact: The fiscal impact to the City would be virtually zero in total cost other than being responsible for paying all invoices acquired under this program, which can then be fully reimbursed back to the City by DWR.

Prior Council Action: N/A
Other: Please see attachments.

Alternatives: The Council may choose not to adopt resolution 2023-19 Recommended Motion (and Alternative Motions if expected): I move to approve Resolution 2023-19 to participate in the DWR Temporary Flood Diversion Equipment & Recharge Enhancement Initiative and appropriate $560,000.

Environmental Assessment Status
CEQA Review: Exempt under program.

Visalia City Council Page 3 of 3 Printed on 6/2/2023
powered by Legistar™483
City of Visalia Natural Resource Conservation
425 E. Oak Ave., Ste. 101, Visalia, CA 93291 Tel: (559) 713-4531 Fax: (559) 713-4817 To: Department of Water Resources, Steven Springhorn
CC:

From: Leslie Caviglia and Nick Bartsch
Date: May 8th, 2023
Subject: Temporary Pump for Flood Water Layoff and Groundwater Recharge The City of Visalia will be installing temporary pumps to deliver water from the Kaweah River System to People’s basin site from Kaweah Reservoir releases, and two additional agricultural sites that have been modified to accept considerable amounts of water due to high percolation, located at the City of Visalia’s Eastside Regional Park. The temporary pumps should be capable of diverting a total of 60 CFS off of the Kaweah system, which equals approximately ~120 acre-feet per day or ~3,000 acre-feet per month, from May through November.

Peoples Basin
The entrance to Peoples Basin is located at the intersection of Road 204 and Ave 322 in Woodlake, CA. the basin is approximately one quarter mile south of the entrance, adjacent to the lower Kaweah River.

This basin is approximately 8 miles upstream of the City of Visalia. A temporary 24-inch diesel pump will be placed on the bank of the Lower Kaweah River, and divert water 40 feet north, into the basin. The components needed to operate this pump include a 24-inch diameter diesel pump, 40 feet of intake hose, 100 feet of discharge line, pipe fittings, a pump meter, and a separate external 400-gallon fuel cell. The equipment needed would be rented on a monthly basis. The pump should be capable of diverting 30 CFS. • Estimated Monthly Pump System Rental Cost: $38,000
• Estimated Monthly Fuel Costs: $6,000
• Estimated Initial Fixed Cost: $16,000
• Estimated Total Costs from May through November (7 months): $324,000 Eastside Regional Park
The Eastside Regional Park is a planned mixed use park complex, which includes sports fields, groundwater recharge basins, natural walking trails, and beneficial California native habitat. Currently, the City of Visalia owns the entire portion of the planned project and is currently construction the first phase of the park complex. Two of the undeveloped fields within the complex boundary are adjacent to Mill Creek, a body of water which runs seasonally through the center of the city from east to west. 484
City of Visalia Natural Resource Conservation
425 E. Oak Ave., Ste. 101, Visalia, CA 93291 Tel: (559) 713-4531 Fax: (559) 713-4817 - Field 1, which is located north and adjacent to Mill Creek and is comprised of 120 acres of fallowed walnuts, of which over 90% are deceased. A two-foot-high berm has been constructed around the perimeter of the field in order to retain diverted flows from Mill Creek. This Field can be outfitted with an 18-inch diameter trash pump which would divert water from Mill Creek and deposit the water approximately 80 feet north, into the field. The pump should be capable of diverting 20 CFS.
- Field 2, which is located south and adjacent to Mill Creek, opposite Field 1, and is comprised of 40 acres of fallowed pecans, of which over 40% are deceased. A two-foot high berm has been constructed around the perimeter of the field in order to retain diverted flows from Mill Creek.

This Field can be outfitted with an 12 inch diameter trash pump which would divert water from Mill Creek and deposit the water approximately 80 feet north, into the field. The pump should be capable of diverting 10 CFS.

Two temporary pumps will be placed on the bank of Mill Creek intended to divert water from mill creek into the adjacent fields. An 18-inch diameter pump will be placed on the north bank, and divert water into Field 1, and the second 12-inch diameter pump will be placed on the south bank and divert water into Field 2. The components needed to operate this pump include the two mentioned pumps, 80 feet of intake hose, 200 feet of discharge line, pipe fittings, two flowmeters, and two separate external 400-gallon fuel cells. The equipment needed would be rented on a monthly basis. • Estimated Monthly Pump System Rental Cost Total: $22,000 o 18 In Trash Pump: $16,000
o 12 In Trash Pump: $6,000
• Estimated Monthly Fuel Costs Total: $10,000
• Estimated Initial Fixed Cost: $16,000
• Estimated Total Costs from May through November (7 months): $240,000 Additional Recharge Opportunities
The sites proposed above provide the greatest opportunities for taking additional floodwaters and recharging to the groundwater basin.
485
E Houston Ave
Evans Ditch
Mill Creek
N Mc Auliff St
N
Mc
Auliff St
Ivanhoe Dr
E Houston Ave
Mill Creek
Oakes Ditch
R
d 152
Oakes Ditch
Mill Creek
R
d 152 Oakes Ditch
Nearmap US
Mill Creek
Ú[
Ú[
18 in
Pump
12 in
Pump
Nearmap US
Ferguson
Lovers Lane
Center
Burke
Ben Maddox
Giddings Giddings
Houston Houston
Tulare Tulare
Shannon
Dinuba
Court
Mooney
Riggin
Ave 320
Mc Auliff
Rd 144
St Johns Riverway
Park
Visalia Country Club
Caldwell
Walnut
Whitendale Santa Fe
K
Rd 156
Ave 280
Esri, NASA, NGA, USGS, FEMA
Project Location
¯
0 250 500 1,000
Feet
Ú[ Pump Site
Discharge Line
Basin Proposed Pump Locations at ESRP 486
Ú[
Consolidated People's Ditch
Kaweah River
24 in
Pump
Nearmap US, Maxar, Microsoft
Ferguson
Houston
Tulare
Noble
Riggin
Ave 320
St Johns Riverway
Park
Caldwell
Walnut
Whitendale
Esri, NASA, NGA, USGS
Project Location
¯
0 125 250 500
Feet
Discharge Line
Basin
Ú[ Pump Site Proposed Pump Location at Peoples Basin 487

CIT OF VISALIA
RESOLUTION NO. 2023-XX
WHEREAS, the City of Visalia (City) is a public agency formed in 1852 under the Article XI, section 5 of the California Constitution; and WHEREAS, the State of California, Department of Water Resources has created a program to reduce flooding in the Tulare Lake Bottom by increasing the use of surface water for irrigation and recharge; and
WHEREAS, as a public agency, the City is eligible to receive and expend said funding for eligible private and public projects, including construction or modification of facilities that increase water diversions from waterways, canals, and ditches and in the utilization of pumps, pipelines and equipment; and
WHEREAS, the grant funding opportunity offered by the Department of Water Resources will provide funding without the obligation for local cost share for the installation, reconfiguration, or operation of facilities associated with the diversion of water from waterways, canals, and ditches within the District; and WHEREAS, the City Council (Council) supports such projects for its local and statewide benefit; and
WHEREAS, the Council believes and hereby determines it to be in the best interest of the City to authorize the City Manager to complete negotiations and execute the grant funding agreement referred to herein consistent with the intent of this Resolution, and further complete the negotiation and execution of such other documents and agreement(s) that may be necessary to receive said funding for the project(s) contemplated thereby.

NOW, THEREFORE BE IT RESOLVED THAT:

1. The recitals set forth hereinabove are true and correct, and are incorporated herein.

2. City of Visalia staff is authorized to provide in-kind services as may be required to implement the intent of this Resolution.

3. The City Manager is hereby authorized to complete, execute and file an agreement for grant funding consistent with the intent of this Resolution, and further complete the negotiation and execution of such other documents and agreement(s) that may be necessary to receive said funding for the project(s) contemplated thereby, and further to take such other actions and execute such documents as such officers shall deem necessary or appropriate to carry out and implement the intent of this Resolution, said execution to provide conclusive evidence of the Board’s approval.
488
 Return to List
 Print PDF
Request Details
* MASTER: 2023 February­April Storms
Request Status
Status Coordinating
Mission ID 2023­SOC­107139
Mission Coordinator Info
Name Elizabeth Wilder
Location SOC
Position MRT
Agency Cal OES
Action Taken
5/19/23 0809 EWilder: Per Joanne Gurrola Pumps will be placed generally in the ag areas around Visalia and Tulare. 5/18/23 1015 JGurrola: New request created to task to DWR for approval under the Temporary Groundwater Improvement program.

IDO/GeoOps/SOC MT notified by email.

Details Requesting Point of Contact
Operational Area Tulare  Name Aaron Fukuda
Request Summary
Pumps for Water Diversion Project to alleviate
flooding in the Tulare Lake Bottom area.

Agency Tulare Irrigation District
Suggested Source DWR  Phone 559­707­8928
Date/Time Required 05/18/2023 17:00:00  Alternate Phone 559­686­3425 Date/Time Required Until 07/31/2023 17:00:00
Priority NOW
Resource Request Information
Resource Needed Flood Fight Technical Advisors
Resource Coordinator
Category
Resources (EF­07)
Detailed Resource
Description
The Tulare Irrigation District (District or TID) requests temporary water pumps to be placed in various locations throughout our district to provide flood relief, to increase use of surface water for irrigation, and to increase recharge demand. By increasing spreading capacity, TID will reduce the amount of water spilled from Lake Kaweah to the Tulare Lake Bottom by approximately 6,800­acre feet, which is currently facing significant flooding concerns. The pumps are expected to run from May 15, 2023, to July 15,2023. The 300­ mile TID distribution system of canals and ditches traverses in a southwest direction and spills into the Lake Bottom at the southwest corner of our District. We have three spill locations that send water to canal systems that increase flooding potential in the Tulare Lake Bottom. These flood diversions carry out the recent Governors executive orders N­4­23 and N­6­23 to do everything possible to maximize flood diversions. Tulare Irrigation District has exhausted all resources and is unable to procure materials locally for this action. TID ID proposes the following locations for increased diversion and spreading:
•Swall Basin – 125­acre recharge basin: Install two 20 cubic feet per second (cfs) pumps toincrease the diversion capacity by approximately 20 cfs.
•City of Tulare Liberty Stormwater Basin – Existing stormwater basin: Install a 5 cfs pumpto provide diversion into an existing stormwater basin adjacent to the Liberty Ditch.
•Nichols Fallow Field – 35­acres provided by Nichols Farming to increase groundwaterrecharge: Install a 5 cfs pump and gated pipeline to provide recharge on the 35 acres.
•Visser Fallow/Farmed Field – 130­acres provided by Visser Farming to increasegroundwater recharge and surface water usage: install 5 cfs pump from V­Line Ditch

489
 Delete  Delete
Detailed Resource
Description
corner of our District. We have three spill locations that send water to canal systems that increase flooding potential in the Tulare Lake Bottom. These flood diversions carry out the recent Governors executive orders N­4­23 and N­6­23 to do everything possible to maximize flood diversions. Tulare Irrigation District has exhausted all resources and is unable to procure materials locally for this action. TID ID proposes the following locations for increased diversion and spreading:
•Swall Basin – 125­acre recharge basin: Install two 20 cubic feet per second (cfs) pumps toincrease the diversion capacity by approximately 20 cfs.
•City of Tulare Liberty Stormwater Basin – Existing stormwater basin: Install a 5 cfs pumpto provide diversion into an existing stormwater basin adjacent to the Liberty Ditch.
•Nichols Fallow Field – 35­acres provided by Nichols Farming to increase groundwaterrecharge: Install a 5 cfs pump and gated pipeline to provide recharge on the 35 acres.
•Visser Fallow/Farmed Field – 130­acres provided by Visser Farming to increasegroundwater recharge and surface water usage: install 5 cfs pump from V­Line Ditch
Quantity Requested 5 Other
Size of Resource
Operator Required No
Fuel Required No
Other Items Required
Resource Delivery Information Delivery Point of Contact Information Street Address 6826 Ave 240  Map Name Aaron Fakuda
Lat / Long  /  Agency Tulare Irrigation District
Site Type TID Office Location  Phone Number 559­707­8928 Site Name Tulare Irrigation District  Alternate Phone 559­686­3425 Special Instructions Please call Aaron Fukuda (TID) as there will be multiple locations File Attachments
Attachment Visalia DWR request letter
Attachment Tulare Irrigation District request letter
Review / Comment  Edit  Department of Water Resources  Unreviewed ESF­7 Resources Unreviewed
Tasks
Task
Number ESF Task Lead Task Description Comments Priority Attachments Status Details T 89573
Resources
(ESF­07)
Department
of Water
Resources
(DWR) ­
3860
The City of Visalia are requesting temporary
pumps to deliver water from Kaweah River
System to People's Basin Site from Kaweah
Reservoir release:

Pumps needed tentatively: May through
November
*Peoples Basin: A temporary 24­ inch diesel
pump, 40 feet of intake hose, 100 feet of
discharge line, pipe fittings, a pump meter, and a
separate external 400­gallon fuel cell. The pump
should be capable of diverting 30CFS.
*Eastside Regional Park: An 18­inch diameter
trash pump. The pump should be capable of
diverting 20 CFS.
*The bank of Mill Creek
Field 1: An 18­in diameter pump on the north
bank
Field 2: A 12­inch diameter pump on the south
bank
05/19/23 0822
EWilder: Please see
the attached resource
request from the
County of Visalia for
additional information.
5­12
hours =
med
Attachment Coordinating
 Edit  View

490
T 89573
Resources
(ESF­07)
Department
of Water
Resources
(DWR) ­
3860
November
*Peoples Basin: A temporary 24­ inch diesel
pump, 40 feet of intake hose, 100 feet of
discharge line, pipe fittings, a pump meter, and a
separate external 400­gallon fuel cell. The pump
should be capable of diverting 30CFS.
*Eastside Regional Park: An 18­inch diameter
trash pump. The pump should be capable of
diverting 20 CFS.
*The bank of Mill Creek
Field 1: An 18­in diameter pump on the north
bank
Field 2: A 12­inch diameter pump on the south
bank
The components needed to operate this pump
include the two mentions pumps, 80 feet of
intake hose, 200 feet of discharge line, pipe
fittings, two flowmeters, and two separate
external 400­gallon fuel.
cells. (Rented on a monthly basis) The pumps
should be capable of diverting 30 CFS.
05/19/23 0822
EWilder: Please see
the attached resource
request from the
County of Visalia for
additional information.
5­12
hours =
med
Attachment Coordinating
 Edit  View
T 89569
Resources
(ESF­07)
Department
of Water
Resources
(DWR) ­
3860
The Tulare Irrigation District (District or TID)
requests temporary water pumps to be placed in
various locations throughout our district to
provide flood relief, to increase use of surface
water for irrigation, and to increase recharge
demand. Pumps expected to run until 7/15/2023.
•Swall Basin – 125­acre recharge basin: Install
two 20 cubic feet per second (cfs) pumps.
•City of Tulare Liberty Stormwater Basin –
Existing stormwater basin: Install a 5 cfs pump.
•Nichols Fallow Field – 35­acres provided by
Nichols Farming to increase ground water
recharge: Install a 5 cfs pump and gated pipeline.
•Visser Fallow/Farmed Field – 130­acres
provided by Visser Farming: install 5 cfs pump
from V­Line Ditch. A Suction pipe will be installed
in the Liberty Ditch where it emerges from a
pipeline and discharge immediately to the east in
the adjacent field.
05/19/23 0824
EWilder: Please see
the attached resource
request from the
County of Tulare for
additional information.
5­12
hours =
med
Attachment Coordinating
 Edit  View
Originated by: [email protected]  as Tulare ­ OP AREA ­ LOG Section Chief Originated date: 05/18/2023 09:48:31
Last Edited by: [email protected]  as Cal OES SOC OPS Mission Coord Last Edited date: 05/19/2023 08:08:21

491
Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 23-0208 Agenda Date: 6/5/2023 Agenda #: 1.

Agenda Item Wording:

Public Hearing and Adoption of Resolution 2023-17 which allows the City of Visalia to place Miscellaneous Special Assessments on the Tulare County secured property tax roll for Curb and Gutter, Sewer Connection, Deferred Impact Fees, Property and Business Improvement District, Northeast Improvement District, Landscape and Lighting Maintenance District, Landscape and Lighting Parks Construction, Open Space Assessment District, Orchard Walk East/West Utility Assessment District, Laura and Atwood Water Main Assessment District, Delinquent Utilities, Code Enforcement, and Weed & Lot Abatement.

Deadline for Action: 6/5/2023
Submitting Department: Finance and Technology Services
Contact Name and Phone Number: Ruth Pena, 713-4327, [email protected] <mailto:[email protected]>
Department Recommendation:

It is recommended that the City Council conduct a public hearing to allow individuals an opportunity to protest any charges they believe are being assessed improperly. After holding the Public Hearing, it is recommended the Visalia City Council adopt Resolution 2023-17 which allows the City of Visalia to place Miscellaneous Special Assessments on the Tulare County secured property tax roll for collection.

Background Discussion:

Summary: Each year, the Council considers a Resolution to place assessments on the property tax roll for collection. The total parcels and amounts requested to be placed on the tax roll are preliminary until the final filing date of August 10, 2023, with the Tulare County Auditor-Controller’s Office. Until the filing date, the list may change due to payments being received or parcel numbers being removed if they are not active in the County data base. The final list, and its assessments, will not increase from the preliminary listing. The only changes that will occur will result in a decrease in parcels submitted and dollar amount assessed. A final listing of the parcel numbers and amounts assessed will be available after August 31, 2023.

The preliminary amount for fiscal year 2023/24 is $7,788,609 and will be assessed on 24,916 parcels. It is possible that some parcels may receive more than one type of assessment, resulting in a reduction in the number of actual parcels being assessed.

Background Discussion:

The placing of miscellaneous special assessments on the Tulare County secured property tax roll is an annual process which allows the City to collect fees for three general categories:

1. Agreements Entered Into at the Property Owner’s Request · Curb and Gutter
· Sewer Connection
Visalia City Council Page 1 of 6 Printed on 6/2/2023
powered by Legistar™492
File #: 23-0208 Agenda Date: 6/5/2023 Agenda #: 1.
· Deferred Impact Fees

2. Special District Assessments
· Property and Business Improvement District
· Northeast Improvement District
· Landscape and Lighting Maintenance District
· Landscape and Lighting Parks Construction
· Open Space Assessment District
· Orchard Walk East/West Utility Assessment District
· Laura and Atwood Water Main Assessment District

3. Delinquent Service Charges
· Utilities
· Code Enforcement
· Weed and Lot Abatement
City departments are responsible for calculating and levying the charges and fees for the services they render, and the assessments they administer. The property owners are notified of the tax roll assessment individually, and in accordance with the applicable law, at: 1) the time of the agreement, as in the case of the owner requested services; 2) through a balloting process, as in the case of assessments in Landscape and Lighting Districts that do not have an automatic annual increase provision; and 3) receipt of a 45 day notice by mail, as in the case of delinquent service charges. Property owners are also notified of the tax roll assessment through a 10-day notice of the Public Hearing published in the newspaper by the City Clerk. All notifications and public hearings are in accordance with the Visalia Ordinance Code, Proposition 218, and California Law.

A preliminary listing, including the parcel number and the dollar amount to be assessed will be on file with the City Clerk after June 5, 2023. The listing is preliminary until the final filing date of August 10, 2023, with the Tulare County Auditor-Controller’s Office. Until the filing date, the list may change due to payments being received or parcel numbers being removed due to not yet being active in the County data base. The final list will not increase from the preliminary listing. The only changes that will occur will result in a decrease in parcels submitted and dollar amount assessed. A final listing of the parcel numbers and amounts assessed will be on file with the City Clerk after August 31, 2023.

A comparison of the FY 2023/24 current year preliminary assessments with the 2022/23 prior year preliminary assessments is shown in Table I: Tax Roll Summary. The table shows a decrease of 193 parcels in this year’s tax roll compared to last year.

Increase/ Increase/
(Decrease)(Decrease) # of Parcels$ Amount # of Parcels$ Amount # of Parcels$ Amount Owner Requested Services
Curb & Gutter 2 2,303 1 1,127 (1) (1,176) Sewer Connection 56 48,382 55 47,510 (1) (872) Deferred Parking In Lieu Fees 1 6,533 - - (1) (6,533) Deferred Impact Fees 12 429,972 7 341,974 (5) (87,998) Subtotal 71 487,190 63 390,611 (8) (96,579) Special District Assessments
Property and Business Improvement District 279 418,479 279 439,401 - 20,922 Northeast Improvement District 3,234 156,386 3,234 156,386 - - Landscape & Lighting Maintenance Districts 19,529 5,358,617 19,213 5,458,688 (316) 100,071 Landscape & Lighting Parks Construction 256 23,675 256 23,675 - - Open Space Assessment District 137 13,368 137 13,368 - - Orchard Walk East/West Utility Assessment District 12 58,274 12 55,168 - (3,106) Laura and Atwood Water Main Assessment District 18 20,131 18 20,021 - (110) Subtotal 23,465 6,048,930 23,149 6,166,707 (316) 117,777 Delinquent Service Charges
TABLE 1: TAX ROLL SUMMARY
Change from prior Year
FY 2022/23 - Preliminary FY 2023/24 - Preliminary
Visalia City Council Page 2 of 6 Printed on 6/2/2023
powered by Legistar™493
File #: 23-0208 Agenda Date: 6/5/2023 Agenda #: 1.

Increase/ Increase/
(Decrease)(Decrease) # of Parcels$ Amount # of Parcels$ Amount # of Parcels$ Amount Owner Requested Services
Curb & Gutter 2 2,303 1 1,127 (1) (1,176) Sewer Connection 56 48,382 55 47,510 (1) (872) Deferred Parking In Lieu Fees 1 6,533 - - (1) (6,533) Deferred Impact Fees 12 429,972 7 341,974 (5) (87,998) Subtotal 71 487,190 63 390,611 (8) (96,579) Special District Assessments
Property and Business Improvement District 279 418,479 279 439,401 - 20,922 Northeast Improvement District 3,234 156,386 3,234 156,386 - - Landscape & Lighting Maintenance Districts 19,529 5,358,617 19,213 5,458,688 (316) 100,071 Landscape & Lighting Parks Construction 256 23,675 256 23,675 - - Open Space Assessment District 137 13,368 137 13,368 - - Orchard Walk East/West Utility Assessment District 12 58,274 12 55,168 - (3,106) Laura and Atwood Water Main Assessment District 18 20,131 18 20,021 - (110) Subtotal 23,465 6,048,930 23,149 6,166,707 (316) 117,777 Delinquent Service Charges
Utilities 1,307 816,219 1,230 764,538 (77) (51,681) Code Enforcement 231 390,570 413 366,552 182 (24,018) Weed & Lot Abatement 35 23,206 61 100,201 26 76,995 Subtotal 1,573 1,229,995 1,704 1,231,291 131 1,296
Total 25,109$ 7,766,115 24,916$ 7,788,609 (193)$ 22,494 TABLE 1: TAX ROLL SUMMARY
Change from prior Year
FY 2022/23 - Preliminary FY 2023/24 - Preliminary
Attachment 2 provides a comparison of FY 2022/23 preliminary and final numbers and the FY 2023/24 preliminary numbers. The final tax roll is always less than the preliminary tax roll due to property owners making payments until the final list is submitted to the County.

The following are descriptions of the categories, the types of assessments within each category and the preliminary amounts expected to roll to taxes in FY 2023/24 for each assessment.

1. Agreements Entered Into at the Property Owner’s Request The assessments below are supported by an agreement between the City of Visalia and the property owner.
· Curb & Gutter: 1 Parcel totaling $1,127
These assessments are for the construction of curb and gutter or sidewalk for the specific parcel. This type of special assessment is for property owners that opted to pay for the construction costs through their property tax bill over a period of up to ten years. A 5% interest rate is charged on the outstanding principal balance each year. · Sewer Connection: 55 Parcels totaling $47,510
These assessments are for the construction of the main line and lateral for connection to the Visalia Wastewater Treatment Plant for property owners that opted to pay connection costs through their property tax bill over a five- or ten-year period. A 5% interest rate is charged on the outstanding principal balance each year.
· Deferred Impact Fees: 7 Parcels totaling $341,974
These assessments are for certain eligible companies whose operations meet specific guidelines established by City Ordinance. The ordinance allows these companies to elect to Visalia City Council Page 3 of 6 Printed on 6/2/2023
powered by Legistar™494
File #: 23-0208 Agenda Date: 6/5/2023 Agenda #: 1.
pay their development impact fees over five years on the property tax roll.

2. Special District Assessments
The following assessments represent Special Districts that are placed on the Tulare County secured property tax roll. Proposition 218 requires that any increase be approved by a vote of the property owners unless the district was created with or has implemented a benefit assessment increase allowance. · Property and Business Improvement District (PBID): 279 Parcels totaling $439,401 PBID V, with a term of January 1, 2020, through December 31, 2029, was approved on July 15, 2019. The PBID District will benefit from the improvements, projects, programs and activities funded by the assessments. With the approval of Council, the funds are administered by the Downtown Property Owners Association (POA) which was created for this specific purpose.

The POA currently subcontracts the daily operation of the PBID to the Downtown Visalians, Inc, a non-profit organization formed to improve the image and economic vitality of the downtown commercial district.

The PBID preliminary amount shown above represents the portion of PBID assessments which can be placed on the tax roll. The remaining PBID assessments are for properties owned by public agencies, which do not pay property tax, and will be billed through City Accounts Receivable. The City Council approved a 5% increase in the annual assessment on May 15, 2023, which is included in this amount.
· Northeast Improvement District: 3,234 Parcels totaling $156,386 This special assessment is for the Northeast Open Space and the assessments are used to develop and maintain the Northeast Area Specific Plan. This includes the maintenance of the landscape and lighting along the medians in St. Johns Parkway, Mill Creek Parkway, Lovers Lane and improvements along Houston Ave.
· Landscape & Lighting Maintenance Districts (L&L): 19,213 Parcels totaling $5,458,688 These special assessments are for the maintenance of improvements in L&L Maintenance Districts. This includes the annual cost of maintaining common area real property improvements in and around specific subdivisions. Each subdivision parcel shares equally in the annual cost of the landscape maintenance. In general, additions to L&L districts lag a year or two when being added to the tax roll. The increase in parcels is due to the creation of new districts and annexations into existing districts. Increases in assessments may be due to these newly added parcels, automatic assessment increases, or the result of a ballot process. · Landscape & Lighting Parks Construction: 256 Parcels totaling $23,675 These special assessments are for park construction costs that have been financed through a General Fund loan to be repaid over a 20-year period. The FY23/24 assessments are for the Majestic Park loan which will be paid off by 2036.
· Open Space Assessment District: 137 Parcels totaling $13,368 These special assessments are for the costs related to maintenance of landscaping in the district.
· Orchard Walk East/West Utility District: 12 Parcels totaling $55,168 These special assessments are for the debt service costs of bonds related to improvements for underground utilities. The formation of this Assessment District was approved on October 19, 2009, and the bonds will mature on September 2, 2026. As of June 30, 2022, $180,000 of the principal balance remained outstanding.

Visalia City Council Page 4 of 6 Printed on 6/2/2023
powered by Legistar™495
File #: 23-0208 Agenda Date: 6/5/2023 Agenda #: 1.
· Laura and Atwood Water Main Assessments: 18 Parcels totaling $20,021 These special assessments are for extending Cal Water Service water mains to homes in the Laurel and Atwood Street neighborhoods. The cost of the extensions is being repaid from a 15- year bond assessment which the property owners will repay with their property tax payment at 4% interest. The balance is scheduled to be paid off in 2030. As of June 30, 2022, $133,461 of the principal balance remained outstanding.

3. Delinquent Service Charges
The remaining assessments are collection charges which provide a means for the City of Visalia to annually collect money owed to the City which the City has not been able to collect through the normal billing process.
· Utilities: 1,230 Parcels totaling $764,538
These assessments are used for accounts with delinquent service charges for refuse and/or sewer service. Delinquencies collected in this manner are limited to amounts owed in the property owners name at the specific parcel. For delinquent accounts owed by property owners, Finance recalls the uncollected debt from the collection agency and places the past due amount on the tax roll.
· Code Enforcement: 413 Parcels totaling $366,552
These assessments are for code enforcement cost recovery fees, which are based upon administrative costs and costs of enforcement. The fees included are for building, fire department, natural resource conservation, and animal control code violations. · Weed and Lot Clearing: 61 Parcels totaling $100,201
These assessments are for the clearing of weeds and/or other material that pose a fire hazard on properties. These are assessed by the Fire Department.

Fiscal Impact:

If not approved, this will negatively affect several funds and could potentially require increased fees and charges to subvent non-collectable accounts through alternative billing methods.

Prior Council Action: Council has authorized Finance to submit the annual tax roll for many years to ensure collection of special assessment fees and delinquent service charges.

Other: N/A
Alternatives: Do not authorize Finance to submit the tax roll. This will negatively affect several funds and could potentially require increased fees and charges to subvent non-collectable accounts through alternative billing methods.

Recommended Motion (and Alternative Motions if expected):

I move to adopt Resolution 2023-17 which allows the City of Visalia to place Miscellaneous Special Assessments on the Tulare County secured property tax roll for Curb and Gutter, Sewer Connection, Deferred Impact Fees, Property and Business Improvement District, Northeast Improvement District, Landscape and Lighting Maintenance District, Landscape and Lighting Parks Construction, Open Space Assessment District, Orchard Walk East/West Utility Assessment District, Laura and Atwood Water Main Assessment District, Visalia City Council Page 5 of 6 Printed on 6/2/2023
powered by Legistar™496
File #: 23-0208 Agenda Date: 6/5/2023 Agenda #: 1.

Orchard Walk East/West Utility Assessment District, Laura and Atwood Water Main Assessment District, Delinquent Utilities, Code Enforcement, and Weed & Lot Abatement.

Environmental Assessment Status: N/A
CEQA Review: N/A
Attachments:

Attachment 1: Resolution 2023-17
Attachment 2: Tax Roll Summary
Visalia City Council Page 6 of 6 Printed on 6/2/2023
powered by Legistar™497
ATTACHMENT 1
RESOLUTION NO. 2023-17

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VISALIA

CERTIFYING TO THE COUNTY THE VALIDITY OF THE LEGAL PROCESS

USED TO PLACE MISCELLANEOUS SPECIAL ASSESSMENTS ON THE

SECURED TAX ROLL
WHEREAS, Section 25831 of the Government Code and Section 40059 of the Public Resources Code establishes the procedure for collection of solid waste fees remaining unpaid to the local agency for 60 days or more; and
WHEREAS, Sections 38771-38775 of the Government Code authorizes cities to declare what constitutes a nuisance, establish a procedure for the abatement of a nuisance, and make the cost of abatement of a nuisance a special assessment against the parcel; and WHEREAS, Sections 5610-5630 of the Streets and Highways Code authorizes cities to recover the costs of repairing sidewalks, curbs, and gutter as a special assessment, Sections 22500-22679 authorize the creation of landscape and lighting assessment districts ; and WHEREAS, the City is a charter law city under the laws of the State of California and authorized to possess, and exercise all powers and rights vested in said City of Visalia, under its charter, the Constitution of California and the laws of the state, and all powers which a municipal corporation may lawfully possess or exercise under the Constitution of California, which include but are not limited to the sewer services, creation of assessment districts, creation of underground utility districts, and for the collection of development impact fees; and WHEREAS, the written notices have been mailed to all delinquent accounts, and the required public hearings have been held as specified by the Visalia Ordinance Code; and WHEREAS, a public hearing was held on June 5, 2023; and WHEREAS, the City is placing miscellaneous special assessments on the Tulare County secured property tax roll for collection; and
WHEREAS, the City has complied with all laws pertaining to the levy of the special assessments to be collected; and
WHEREAS, the special assessments have been levied in accordance with a particular benefit to each parcel to be assessed without regard to its assessed valuation; and WHEREAS, the Curb and Gutter special assessments are for the construction of curb and gutter or sidewalk for the specific parcel; and
WHEREAS, the Sewer Connection special assessments are for the construction of the service lateral and for connection to the Visalia Waste Water Treatment Plant for the specific parcel; and
WHEREAS, the Deferred Impact Fee special assessments are for the development impact fees of eligible companies whose operations have met the specific guidelines established by City Ordinance; and
498
WHEREAS, the Property and Business Improvement District special assessments are for the improvements, projects, programs and activities of the Visalia downtown; and WHEREAS, the Northeast Improvement District special assessments are used to develop and maintain the Northeast Area Specific Plan; and WHEREAS, the Landscape & Lighting Maintenance District special assessments are used for maintenance and operation of the improvements situated in the specific Maintenance District; and
WHEREAS, the Landscape & Lighting Parks Construction special assessments are used for the repayment of a General Fund loan that financed the construction of Majestic Park in the Woodside Sousa District ; and
WHEREAS, the Open Space District special assessments are used for maintenance and operation of the improvements situated in the specific Maintenance District; and WHEREAS, the Orchard Walk East/West Utility special assessments are for the repayment of debt associated with the costs and expenses to improve underground utilities; and WHEREAS, the Laura and Atwood Water Main special assessments are for the repayment of a 15 year bond for water main extensions in these specific neighborhoods; and WHEREAS, the Delinquent Utilities special assessments are used for the payment of delinquent service charges for refuse and/or sewer service that are billed for city services only accounts; and
WHEREAS, the Code Enforcement special assessments are used for the cost recovery of Code Enforcement fees for the specific parcel; and
WHEREAS, the Weed & Lot Abatement special assessments are used for the clearing of weeds and other materials from lots which pose a fire hazard.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Visalia that the list submitted with parcel numbers, and amount are certified as being correct, the Finance Director is hereby directed to give the list to the Tulare County Auditor for placement on the secured tax roll for collection:

1. Curb and Gutter special assessments,

2. Sewer Connection special assessments,

3. Deferred Impact Fee special assessments,

4. Property and Business Improvement District special assessments,

5. Northeast Improvement District special assessments,

6. Landscape and Lighting Maintenance District special assessments,

7. Landscape and Lighting Parks Construction special assessments,

8. Open Space District special assessments,

9. Orchard Walk East/West Utility special assessments,

10. Laura and Atwood Water Main special assessments,

11. Delinquent Utilities special assessments,

12. Code Enforcement special assessments,

13. Weed and Lot Clearing special assessments.
499
PASSED AND ADOPTED:

STATE OF CALIFORNIA )
COUNTY OF TULARE ) ss.

CITY OF VISALIA
500
Increase/ Increase/
(Decrease) (Decrease)
# of Parcels $ Amount # of Parcels $ Amount # of Parcels $ Amount # of Parcels $ Amount Owner Requested Services
Curb & Gutter 2 2,303 2 2,303 1 1,127 (1) (1,176)
Sewer Connection 56 48,382 55 47,468 55 47,510 - 42
Deferred Parking In Lieu Fees 1 6,533 - - - - - -
Deferred Impact Fees 12 429,972 9 416,314 7 341,974 (2) (74,340) Subtotal 71 487,190 66 466,085 63 390,611 (3) (75,474)
Special District Assessments
Property and Business Improvement District 279 418,479 279 418,477 279 439,401 - 20,924 Northeast Improvement District 3,234 156,386 3,234 156,386 3,234 156,386 - - Landscape & Lighting Maintenance Districts 19,529 5,358,617 19,147 5,187,019 19,213 5,458,688 66 271,669 Landscape & Lighting Parks Construction 256 23,675 256 23,675 256 23,675 - - Open Space Assessment District 137 13,368 137 13,368 137 13,368 - - Orchard Walk East/West Utility Assessment District 12 58,274 12 58,274 12 55,168 - (3,106) Laura and Atwood Water Main Assessment District 18 20,131 18 20,131 18 20,021 - (110) Subtotal 23,465 6,048,930 23,083 5,877,330 23,149 6,166,707 66 289,377 Delinquent Service Charges
Utilities 1,307 816,219 959 629,836 1,230 764,538 271 134,702 Code Enforcement 231 390,570 172 164,867 413 366,552 241 201,685 Weed & Lot Abatement 35 23,206 28 18,101 61 100,201 33 82,100 Subtotal 1,573 1,229,995 1,159 812,804 1,704 1,231,291 545 418,487 Total 25,109 $ 7,766,115 24,308 $ 7,156,219 24,916 $ 7,788,609 608 $ 632,390 ATTACHMENT 2
Tax Roll Summary
Change from prior Year
FY 2022/23 - Preliminary FY 2022/23 - Final FY 2023/24 - Preliminary 501
2023-24 TAX ROLL

ASSESSMENTS
502

TAX ROLL PROCESS
• Annually, Council approves fees and charges to be
placed on the Tax Roll
• Items contested during the Public Hearing are
discussed in detail at the next meeting
• The final parcels and amounts are due to the
County by August 10th
• Amount presented tonight is higher than the final
amount due to payments being received until June
30th
503

TAX ROLL CATEGORIES

1. Agreements Entered Into at the
Property Owner’s Request

2. Special District Assessments

3. Delinquent Service Charges
504

OWNER REQUESTED SERVICES
Owner Requested Services Total: $390,611
• Curb and Gutter: $1,127 – 1 parcel
• Sewer Connection: $47,510 – 55 parcels
• Deferred Impact Fees: $341,974 – 7 parcels
505
SPECIAL ASSESSMENTS (1 OF 2)
Special Assessments Total: $6,166,707
• Property and Business Improvement District (PBID):
$439,401 – 279 parcels
• Northeast Improvement District: $156,386 – 3,234 parcels • Landscape and Lighting Districts: $5,458,688 – 19,213 parcels
• Landscape and Lighting Parks Construction: $23,675 –
256 parcels
506
SPECIAL ASSESSMENTS (2 OF 2)
• Open Space Assessment District: $13,368 – 137 parcels • Orchard Walk East/West Utility District: $55,168 – 12 parcels
• Laura and Atwood Assessments: $20,021 – 18 parcels
507

DELINQUENT SERVICE CHARGES
Delinquent Service Charges Total: $1,213,291
• Delinquent Utilities: $764,538 – 1,230 parcels
• Code Enforcement: $366,552 – 413 parcels
• Weed and Lot Abatement: $100,201 – 61
parcels
508

TAX ROLL SUMMARY
Increase/ Increase/
(Decrease) (Decrease)
# of Parcels $ Amount # of Parcels $ Amount # of Parcels $ Amount Owner Requested Services
Curb & Gutter 2 2,303 1 1,127 (1) (1,176)
Sewer Connection 56 48,382 55 47,510 (1) (872)
Deferred Parking In Lieu Fees 1 6,533 - - (1) (6,533)
Deferred Impact Fees 12 429,972 7 341,974 (5) (87,998)
Subtotal 71 487,190 63 390,611 (8) (96,579)
Special District Assessments
Property and Business Improvement District 279 418,479 279 439,401 - 20,922 Northeast Improvement District 3,234 156,386 3,234 156,386 - - Landscape & Lighting Maintenance Districts 19,529 5,358,617 19,213 5,458,688 (316) 100,071 Landscape & Lighting Parks Construction 256 23,675 256 23,675 - - Open Space Assessment District 137 13,368 137 13,368 - - Orchard Walk East/West Utility Assessment District 12 58,274 12 55,168 - (3,106) Laura and Atwood Water Main Assessment District 18 20,131 18 20,021 - (110) Subtotal 23,465 6,048,930 23,149 6,166,707 (316) 117,777 Delinquent Service Charges
Utilities 1,307 816,219 1,230 764,538 (77) (51,681)
Code Enforcement 231 390,570 413 366,552 182 (24,018)
Weed & Lot Abatement 35 23,206 61 100,201 26 76,995
Subtotal 1,573 1,229,995 1,704 1,231,291 131 1,296
Total 25,109 $ 7,766,115 24,916 $ 7,788,609 (193) $ 22,494 TABLE 1: TAX ROLL SUMMARY
Change from prior Year
FY 2022/23 - Preliminary FY 2023/24 - Preliminary
509

ACTION REQUIRED TONIGHT
• Conduct Public Hearing to allow
individuals to protest any charges they
believe are being assessed improperly.
• Action Recommended - Approve all
tax roll items that were not protested
during the Public Hearing.
510
Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 23-0214 Agenda Date: 6/5/2023 Agenda #: 2.

Agenda Item Wording:

Conduct the first of two Public Hearings to amend the Measure N Spending Plan to appropriate $45,100 for the FY 2022/23 and $18,200 for FY 2023/24 to address cost increases related to patrol vehicle purchases and upfitting; and renew the five-year contract with Axon Enterprise Inc., totaling $1,738,749.49 and appropriate $128,112 for FY 2023/24.

Deadline for Action: 6/5/2023
Submitting Department: Police Department
Contact Name and Phone Number: Chief Jason Salazar, ext. 4215, [email protected] <mailto:[email protected]> ; Captain Dan Ford, ext. 4151, [email protected] <mailto:[email protected]> ; Financial Analyst Liz Ybarra, ext.4250, [email protected] <mailto:[email protected]>
Department Recommendation:

Conduct the first of two Public Hearings to amend the Measure N Spending Plan to appropriate $45,100 for the FY 2022/23 and $18,200 for FY 2023/24 to address cost increases related to patrol vehicle purchases and upfitting; and renew the five-year contract with Axon Enterprise Inc., to fund the Body-Worn Camera (BWC) Program, totaling $1,738,749.49 and appropriate $128,112 for FY 2023/24. The second public hearing is scheduled for the June 19, 2023, City Council meeting.

Summary:

Measure N, the ½ cent sales tax that began April 1, 2017, requires the City to conduct two Public Hearings before amending the 2023/24 Spending plan to fund vehicle purchases for 2022/23 and 2023/24 totaling $63,300; and renewing the contract with Axon Enterprise Inc. to fund the BWC Program. The cost of renewal for the BWC program is $1,738,749.49, spread out over five years, and requiring an additional appropriation of $128,112 for FY 2023/24.

On May 1, 2023, City Council voted unanimously to allow City Staff to initiate the Measure N amendment process to increase the budget for the vehicle purchases related to Measure N positions and to renew the contract with Axon Enterprise Inc. This renewed contract would require an additional appropriation of $128,112 for FY 2023/24.

On May 18, 2023, City Staff met with the Measure N Committee and presented these two amendments, including a detailed summary of items being requested, the anticipated budget for each item, and why the cost had increased for each item. Upon being presented with each option, the committee was provided with an opportunity for comments. Upon accepting the motion, the committee recommended approving both the increased appropriations related to Measure N vehicle purchases, and renewing the contract with Axon Enterprise Inc.

Visalia City Council Page 1 of 6 Printed on 6/2/2023
powered by Legistar™511
File #: 23-0214 Agenda Date: 6/5/2023 Agenda #: 2.

Background Discussion:

The Measure N 10-year plan outlines the personnel to be funded. This includes equipment for each new position. These positions are added during the two-year budget along with the equipment which includes vehicles. In FY 21/22 a Police Officer position was included in the budget and during that time staff was unable to locate any vendors to purchase a patrol vehicle due to low inventory as a result of pandemic shutdowns and a microchip shortage. This vehicle was rolled into the FY 22/23 budget which includes another new officer/vehicle bringing the total to two (2) vehicles for this current fiscal year. In addition, next year’s (FY 23/24) budget includes another position and vehicle. Due to vehicle shortages and high inflation, the vehicle cost and equipment to upfit the vehicle (radios, lights, MDT’s, etc.) has increased significantly. For example, the total cost of a new patrol vehicle in FY 20/21 was $57,277 ($36,918 vehicle + $20,359 vehicle upfit) compared to the City’s last purchase in October 2022 of $75,464 ($50,459 vehicle + $25,005 vehicle upfit). This represents an overall cost increase of 31.75%.

In order to purchase these vehicles, staff is requesting an additional $63,300 from Measure N to cover the cost of these three vehicles and allocate funding at $80,000 for all Measure N vehicles moving forward.

Fund CIP Qty Unit Cost Budget Budget
Available
FY
141 VH0214 1 $80,000 $56,000 ($24,000) 21/22
141 VH0253 1 $80,000 $58,900 ($21,100) 22/23
141 VH0253 1 $80,000 $61,800 ($18,200) 23/24
Funds Needed ($63,300)
The Department is also requesting to renew the five-year contract with Axon Enterprise Inc. in the amount of $1,738,750 for the BWC program. The Department began their BWC Program in 2018 and will reach the end of the current contract on June 30, 2023. The new five-year BWC contract will be more than the current contract which means the annual budget for the BWC will need to be increased as well.

The new contract increase is due to several factors. First, the base price of Axon services has grown significantly (estimated at over $250,000) since the deployment of the Department’s first contract in 2018. Second, the new contract requires an annual increase of four percent in years two through five as opposed to the previous fixed rate. This is an additional $61,053. Third, Axon now bundles their Officer Safety Plan (OSP) packages differently than the previous contract. Through the Department’s review, staff have selected the most basic and cost-efficient bundle offered by Axon and included additional options for approval.

The Department selected The Officer Safety Plan 7, which includes the following:
· Axon Body-Worn Camera
· BWC Docking Stations
Visalia City Council Page 2 of 6 Printed on 6/2/2023
powered by Legistar™512
File #: 23-0214 Agenda Date: 6/5/2023 Agenda #: 2.
· Technology Certification Assurance Plan
· Taser 7
· Taser Certification Bundle
· Taser 7 Docking Stations
· Axon Signal Sidearm
· Axon Standards
· Axon Respond
In addition to the Officer Safety Plan 7, the Department also selected the following options to improve and support the BWC program, Department training, and digital evidence and criminal investigations:
· Axon Migrate (no additional cost)
· Axon Investigate Pro (no additional cost)
· Axon Air (no additional cost)
· Axon Performance
· Axon Virtual Reality (includes Technology Certification Assurance Plan) The table below reflects the costs associated with the Officer Safety Plan 7 and proposed options.

Table 1
Axon Officer Safety Plan - Basic Bundle with requested addition of VR and Performance Package
Options
List Price Net Price Qty Term Subtotal Tax Total
OSP Plan 7 $183.07 $170.13 130 60 $1,327,014 $59,796.86 $1,386,801.86 VR Headset TAP
Bundle
$41.38 $41.38 2 60 $4,965.60 $369.70 $5,335.30
VR Tablet TAP
Bundle
$23.39 $23.39 2 60 $2,806.80 $210.60 $3,017.40
VR Controller Kit $2,434.69 $2,789.38 2 $5,578.76 $474.20 $6,052.96 Performance$9 $8.33 130 60 $64,935 - $64,935
Visalia City Council Page 3 of 6 Printed on 6/2/2023
powered by Legistar™513
File #: 23-0214 Agenda Date: 6/5/2023 Agenda #: 2.

Table 1
Axon Officer Safety Plan - Basic Bundle with requested addition of VR and Performance Package
Options
List Price Net Price Qty Term Subtotal Tax Total
OSP Plan 7 $183.07 $170.13 130 60 $1,327,014 $59,796.86 $1,386,801.86 VR Headset TAP
Bundle
$41.38 $41.38 2 60 $4,965.60 $369.70 $5,335.30
VR Tablet TAP
Bundle
$23.39 $23.39 2 60 $2,806.80 $210.60 $3,017.40
VR Controller Kit $2,434.69 $2,789.38 2 $5,578.76 $474.20 $6,052.96 Performance
License
$9 $8.33 130 60 $64,935 - $64,935
VR User License $20 $20 130 60 $156,000 $156,000
VR User License
-Additional
$21.70 $17.36 25 60 $26,040 - $26,040
Basic License$15 $13 15 60 $11,700.00 - $11,700
Pro License $39 $33.80 23 60 $46,644.00 $46,644
Standards
Implementation**
$30,000 $29,952 1 $29,952.00 $29,952
Total $60,851.36 $1,736,487.
52 **A discount was provided in this contract through negotiations to offset this cost.

The no cost items listed below in table 2, have a value of $95,205 and will only cost the City taxes on the equipment of $2,261.97 if purchased with the items listed in table 1 above.

Table 2
No Cost Additional Items for Table 2
Package
Options
List Price Net Price Qty Term Subtotal Tax Total
VR Headset $1,935 $1,935 6 $11,610 $986 $12,596
Extra Left-Handed
Holster
$91.25 $27.79 2 $182.50 $15.51 $198.01
Extra RightHanded Holster$91.25 $91.25 2 $182.50 $15.51 $198.01 Taser Target
Frame
$85.55 $85.55 4 $342.20 $29.09 $371.09
Taser Conductive$17105 $17105 4 $68420 $5816 $74236
Visalia City Council Page 4 of 6 Printed on 6/2/2023
powered by Legistar™514
File #: 23-0214 Agenda Date: 6/5/2023 Agenda #: 2.

Package
Options
List Price Net Price Qty Term Subtotal Tax Total
VR Headset $1,935 $1,935 6 $11,610 $986 $12,596
Extra Left-Handed
Holster
$91.25 $27.79 2 $182.50 $15.51 $198.01
Extra RightHanded Holster$91.25 $91.25 2 $182.50 $15.51 $198.01 Taser Target
Frame
$85.55 $85.55 4 $342.20 $29.09 $371.09
Taser Conductive
Target
$171.05 $171.05 4 $684.20 $58.16 $742.36
Axon Camera
Bundle
$749 $27.79 130 $3,612.70 $307.70 $3,919.77
Axon Investigate
License
$250 $250 3 60 $45,000 - $45,000
Axon Air Data
License
$32.55 $32.55 10 60 $21,330 - $21,330
Axon Migrate
Channel Service
$10,000 $10,000 1 $10,000 $850 $10,850
Total $2,261.97 $95,205.24
Fiscal Impact:

Patrol Vehicle
As indicated in the table below, staff request an additional appropriation of $45,100 in FY 22/23 and $18,200 in FY 23/24 to address a $63,300 budget shortfall for the purchase of three patrol vehicles.

Fund CIP Qty Unit Cost Budget Budget
Available
FY
141 VH0214 1 $80,000 $56,000 ($24,000.00) 21/22
141 VH0253 1 $80,000 $58,900 ($21,100.00) 22/23A
141 VH0253 1 $80,000 $61,800 ($18,200.00) 23/24
Funds Needed ($63,300.00)
Body-Worn Camera
As indicated in the Table below, staff requests a total allocation of $1,738,750 with payment schedule described below:

Year 1 Year 2 Year 3 Year 4 Year 5 Total
Equipment &
Services
$301,599 $326,687 $337,608 $348,965 $360,777 $1,675,636 Tax $13,513 $11,693 $12,152 $12,630 $13,126 $63,114
Total $315,112 $338,380 $349,760 $361,595 $373,904 $1,738,750 Staff is requesting an additional appropriation of $128,112 for FY 23/24.

Prior Council Action: May 1, 2023 - Council approved Staff to enter into the Measure N Process.

June 18, 2018 - Council awarded $815,618 for BWC program with Axon Enterprise Other: Measure N Committee reviewed and recommended approval of both items.

Visalia City Council Page 5 of 6 Printed on 6/2/2023
powered by Legistar™515
File #: 23-0214 Agenda Date: 6/5/2023 Agenda #: 2.

Alternatives: N/A
Recommended Motion (and Alternative Motions if expected):

Conduct the first of two Public Hearings to amend the Measure N Spending Plan to appropriate $45,100 for the FY 2022/23 and $18,200 for FY 2023/24 to address cost increases related to patrol vehicle purchases and upfitting; and renew the five-year contract with Axon Enterprise Inc., totaling $1,738,749.49 and appropriate $128,112 for FY 2023/24.

Environmental Assessment Status: N/A
CEQA Review: N/A
Attachments: Attachment A: May 1, 2023, Staff Report (File Number 23-0148/Agenda Number 2) Attachment B: Axon Enterprise Contract
Visalia City Council Page 6 of 6 Printed on 6/2/2023
powered by Legistar™516
Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 23-0148 Agenda Date: 5/1/2023 Agenda #: 2.

Agenda Item Wording:

Authorize City staff to initiate Measure N amendment process to increase the budget for the Police Department’s patrol vehicles and the body-worn camera program.

Deadline for Action: 5/1/2023
Submitting Department: Police Department
Contact Name and Phone Number: Chief Jason Salazar, ext. 4215, [email protected] <mailto:[email protected]>; Captain Dan Ford, ext. 4151, [email protected] <mailto:[email protected]>; Financial Analyst Liz Ybarra, ext. 4250, [email protected] <mailto:[email protected]>
Department Recommendation:

Authorize staff to initiate Measure N amendment process to increase the budget for patrol cars and the body-worn camera (BWC) program due to cost increases. Staff recommends appropriating an additional $63,300 to address increased vehicle and equipment costs shortfall for patrol vehicles budgeted in this fiscal year and next year. In addition, staff is recommending to renew the five year contract with Axon Enterprise Inc. for a total of $1,738,749.49 for the Police Department’s BWC Program and appropriate an additional $128,112 for FY 23/24 (Year 1 of the new contract).

Summary:

On October 17th, 2022, City Council approved the purchase of 12 Dodge Chargers for the Police Department. This purchase did not include the Measure N vehicles due to the budget shortfall. The current fiscal year (22/23) budget includes two new patrol vehicles with a total budget of $114,900. In addition, next year’s budget which becomes effective July 1, 2023, includes an additional patrol vehicle which was budgeted for $61,800. The current cost for a fully equipped patrol vehicle is approximately $75,000. Staff is requesting up to $80,000 per vehicle to cover any further price increases.

Measure N also funds the Police Department’s BWC Program. The BWC program began in 2018 and consisted of a five-year contract that expires on June 30th, 2023. The total cost for the five-year contract was $904,233.80. Included in this contract was 130 Officer Safety Plans (including a BWC, Taser, and User License), Signal Sidearm sensors, 23 Pro-User Licenses, 15 Basic-User Licenses, and unlimited digital storage. The contract provided a fixed rate during the period of the contract and was not subject to cost associated with inflation or maintenance.

Over the past four months, staff has worked with Axon to prepare for the next five-year contract. The new 5-year contract has a substantial increase in cost due to several factors including inflation increases since 2018 and a 4% annual increase built into years two through five. Also, this contract includes additional services needed for monitoring and supporting the Department’s current use of Visalia City Council Page 1 of 8 Printed on 4/28/2023
powered by Legistar™517
File #: 23-0148 Agenda Date: 5/1/2023 Agenda #: 2.

Axon equipment and training. As a result of these changes, staff anticipates the allocation from Measure N to increase from $904,233.80 to $1,738,749.49 in order sustain the Police Department’s BWC program over the next five years.

Background Discussion:

The Measure N 10-year plan outlines the personnel to be funded. This includes equipment for each new position. These positions are added during the two-year budget along with the equipment which includes vehicles. In FY 21/22 a Police Officer position was included in the budget and during that time staff was unable to locate any vendors to purchase a patrol vehicle due to low inventory as a result of pandemic shutdowns and a microchip shortage. This vehicle was rolled into the FY 22/23 budget which includes another new officer/vehicle bringing the total to two vehicles for this current fiscal year. In addition, next years (FY 23/24) budget includes another position and vehicle. Due to vehicle shortages and high inflation, the vehicle cost and equipment to upfit the vehicle (radios, lights, MDT’s, etc) has increase significantly. For example, the total cost of a new patrol vehicle in FY 20/21 was $57,277 ($36,918 vehicle + $20,359 vehicle upfit) compared to the City’s last purchase in October 2022 of $75,464 ($50,459 vehicle + $25,005 vehicle upfit). This represents an overall cost increase 31.75%.

In order to purchase these vehicles, staff is requesting an additional $63,300 from Measure N to cover the cost of these three vehicles and allocate funding at $80,000 for all Measure N vehicles moving forward.

Fund CIP Qty Unit Cost Budget Budget
Available
FY
141 VH0214 1 $80,000 $56,000 ($24,000.00)21/22
141 VH0253 1 $80,000 $58,900 ($21,100.00)22/23
141 VH0253 1 $80,000 $61,800 ($18,200.00)23/24
Funds Needed($63,300.00)
The Department is also requesting to renew the five-year contract with Axon Enterprise Inc in the amount of $1,738,750 for the BWC program. The Department began their BWC Program in 2018 and will reach the end of the current contract on June 30, 2023. The new 5 year BWC contract will be more than the current contract which means the annual budget for the BWC will need to be increased as well.

The new contract increase is due to several factors. First, the base price of Axon services has grown significantly (estimated at over $250,000) since the deployment of the Department’s first contract in 2018. Second, the new contract requires an annual increase of four percent in years two through five as opposed to the previous fixed rate. This is an additional $61,053. Third, Axon now bundles their Officer Safety Plan (OSP) packages. Through the Department’s review, staff have selected the most basic and cost-efficient bundle offered by Axon and included additional items for approval.

Visalia City Council Page 2 of 8 Printed on 4/28/2023
powered by Legistar™518
File #: 23-0148 Agenda Date: 5/1/2023 Agenda #: 2.

The OSP7 bundle will include the new Taser 7. The Taser 7 has redesigned darts with Smart Probes which improve accuracy, increase target retention, and improve attainment. There will now be two cartridge types contained in each Taser including Close Quarter Cartridges and Standoff Cartridges which provide different angles of separation to achieve optimal probe spreads at varying distances.

The redesigned probes, cartridge types, and targeting device increases the likelihood of an effective Taser deployment in dynamic, critical situations which makes this a more effective less-lethal use of force option, reduces the potential need for other levels of force, and minimizes risk of injury to all involved. The Taser 7 is also equipped with a louder warning arc that serves as an additional audio/visual deterrent for noncompliant behavior and increasing the likelihood of safely de-escalating critical incidents while minimizing risk of injury to all involved. The Taser 7 is able to upload data automatically and will have removable/rechargeable batteries. Axon will also provide the Department taser cartridges throughout the five-year contract and include certification courses for instructors, targeting systems, and training suits that will allow staff to integrate tasers into weaponless defense training programs.

The OSP7 bundle will also provide the Department with new BWCs and include an automatic upgrade or replacement camera, with no additional cost, at the midpoint of the contract. This is an important feature4 in the contract due to the significant wear and tear that BWCs go through.

Because they are expected to operate in extreme conditions and inclement weather, having this replacement schedule reduces the likelihood of a BWC failing when it is needed most. This replacement feature for the BWCs was also included in the existing Axon contract. Axon will also provide new docking stations, include Signal Sidearm (a sensor that activates the BWC upon a firearm being unholstered), and provide the GPS location of the BWC when powered on. Finally, the bundle will include Axon Standards which is a use of force reporting system that is integrated with Axon’s cloud storage (Evidence.com). This will allow for an improved means of tracking and reviewing use of force incidents in accordance with Department polices and best practices.

The additional services that staff are seeking include Axon Air, Axon Migrate, Axon Investigate, Axon Performance, and Axon VR Training. Axon Air is a software/licensing system that will better manage the Department’s Unmanned Aerial Systems (UAS) program by tracking all flight patterns, weather conditions, pilot flight time and camera direction for all drones and drone operators. It will also provide streamlined evidence processing by uploading all UAS footage directly into evidence.com and provide live streaming for incident command. This service is being provided at no cost in the contract.

Axon Migrate will be a one-time service that will transfer the Department’s historic digital evidence to evidence.com. The Department’s older digital evidence is currently being housed on City servers through the software/hardware Digital Image Management Systems (DIMS). The City is no longer entering new evidence into DIMS due the antiquated storage methods and age of the equipment.

The hardware associated with DIMS has reached its end of life and is due for replacement (estimated cost of $35,000) and cost the Department $6,000 annually for service. Axon Migrate would use Axon staff to transfer the data to evidence.com and ensure that all retention time requirements are met.

This service is being provided at no cost in the contract and will require no ongoing maintenance costs.

Visalia City Council Page 3 of 8 Printed on 4/28/2023
powered by Legistar™519
File #: 23-0148 Agenda Date: 5/1/2023 Agenda #: 2.

Axon Investigate Pro is a forensic digital media software program (which integrates with Evidence.com) that provides several resources for the Investigative staff in relation to video evidence. Video surveillance has become a common and significant factor in criminal investigations, but the processing and review of this evidence is time-consuming and complicated due to the different video formats used by the various surveillance companies. Axon Investigate provides several tools that will help improve the efficiency of these processes all in one program. It has access to the thousands of different video formats (referred to as codecs) that allow staff to examine videos of all types in one program. Axon Investigate also provides the ability to convert these videos into a standard format without diminishing the quality of the evidence. This service will also minimize risk to MIS systems due the potential of viruses being attached to codecs and is included at no cost in the contract.

Axon Performance automates BWC policy reviews and provides actionable, up to date compliance information, such as camera use during calls for service, with an intuitive metrics dashboard and shareable reporting capabilities. This service extracts patterns of behavior from Evidence.com data to improve the Department’s review processes, guide policy updates, and identify opportunities for officer training and development. Axon Performance would provide a cost-effective way to assign audits and ensure compliance with audit procedures. It would also make the audit process much easier and less time consuming to manage. The Department currently has over 9.3 Terabytes of digital evidence contained in Evidence.com. This is the equivalent of 46,504 standard definition twohour movies. Axon Performance will provide the Department an essential tool in conducting thorough and timely audits of this BWC footage.

Axon VR training prepares officers for complex, real-world situations through immersive training that enhances performance, critical thinking and de-escalation skills. Developed in partnership with a cross disciplinary network of first responders, subject matter experts and community leaders, Axon’s expansive library integrates with state-of-the-art technology and can be used in multiple settings. As staff continue to improve the Department’s internal training (Perishable Skills, built in training days, and incorporation of a training center with the new Public Safety Office Building and Evidence Building), this tool will be a significant addition to our training curriculum. It will allow staff to provide better and more realistic training to deescalate potentially violent situations. Furthermore, the digital “range” that is provided will allow for training related to Taser, and firearms without the cost of munitions.

The common purpose behind all of the proposed options presented above, and in the Department’s BWC program as a whole, is risk management. Through the use of BWCs, a level of accountability is provided both for the community and departmental staff. The review of this evidence often clears officers of misconduct while ensuring the preservation of evidence in the rare cases misconduct does occur. BWC evidence can also have substantial effects on mitigating the cost of litigation related to civil actions. Studies indicate that in cases where there is a complete video evidence of the entire contact, federal courts will provide summary judgement (cases are decided based on evidence without going to trial) over 70% of the time. This provides significant relief in litigation costs.

Furthermore, being able to have this video evidence is essential towards providing transparency to the community. By implementing tools such as Axon Investigate and Axon Air, we are able to better Visalia City Council Page 4 of 8 Printed on 4/28/2023
powered by Legistar™520
File #: 23-0148 Agenda Date: 5/1/2023 Agenda #: 2.
demonstrate this transparency.

Risk management surrounding this program must also be applied to the administrative functions of a BWC program. Civil litigation will often target organizations with failing to train or adequately supervise their staff. In cases such as this, it is incumbent on the organizations to show that tools were put in place to ensure adequate training and supervision. As it relates to training, Axon VR is able to provide a mechanism to address training to prevent use of force incidents, where possible, by improving staff’s ability to deescalate incidents. Axon Performance addresses concerns on supervision. Because the large amount of digital evidence produced through the Department’s BWC program, staff must have the tools needed to conduct random audits, review usage metrics, and ensure that the BWC program is functioning properly. The Department’s BWC program has been successful in mitigating civil claims and providing savings for the City in the past and these tools will continue to aide the City moving forward.

Upon researching and selecting the previously described options, staff began negotiations with Axon.

The following charts reflect the negotiated costs. Table 1 describes the most basic plan with no additional services added on. Table 2 describes the Department’s preferred package, including the additional options previously discussed. Finally, Table 3 includes all of the items or services that the Department will receive for free, with an exception to the $2,261.97 required for taxes, if a contract with the options listed in Table 2 is approved.

Table 1
Axon Officer Safety Plan - Basic Bundle
Package Options List Price Net Price Qty Term Subtotal Tax Total OSP Plan 7*$183.07 $180.07 130 60 $1,404,468.00$62,588.45 $1,467,056.45 BWC Camera
Bundle
$749.00 $27.79 130 $3,612.70 $307.07 $3,919.77
10 GB Storage$0.55 $0.55 50 60 $1,650.00 - $1,650.00
Basic License$15.00 $13.00 11700 60 $11,700.00 - $11,700.00 Pro License $23.00 $39.00 23 60 $46,644.00 - $46,644.00 Inactive Channel $5,000.00 $2,087.50 1 $2,087.50 - $2,087.50 Evidence.com
Channel Services
$5,000.00 $5,000.00 1 $5,000.00 - $5,000.00
Total $62,895.52 $1,538,057.
72 *OSP Plan includes Taser 7 (including training supplies), Axon Respond, and Axon Standards and Technology Assurance Plan.

Table 2
Axon Officer Safety Plan - Basic Bundle with requested addition on VC and Performance, and Additional Servi Package Options List Price Net Price Qty Term Subtotal Tax Total OSP Plan 7* $183.07 $170.13 130 60 $1,327,014.00$59,796.86 $1,386,801.86 VR Headset TAP
Bundle
$41.38 $41.38 2 60 $4,965.60 $369.70 $5,335.30
VR Tablet TAP
Bundle
$23.39 $23.39 2 60 $2,806.80 $210.60 $3,017.40
Visalia City Council Page 5 of 8 Printed on 4/28/2023
powered by Legistar™521
File #: 23-0148 Agenda Date: 5/1/2023 Agenda #: 2.

Table 2
Axon Officer Safety Plan - Basic Bundle with requested addition on VC and Performance, and Additional Servi Package Options List Price Net Price Qty Term Subtotal Tax Total OSP Plan 7* $183.07 $170.13 130 60 $1,327,014.00$59,796.86 $1,386,801.86 VR Headset TAP
Bundle
$41.38 $41.38 2 60 $4,965.60 $369.70 $5,335.30
VR Tablet TAP
Bundle
$23.39 $23.39 2 60 $2,806.80 $210.60 $3,017.40
VR Controller Kit $2,434.69 $2,789.38 2 $5,578.76 $474.20 $6,052.96 Performance
License
$9.00 $8.33 130 60 $64,935.00 - $64,935.00
VR User License$20.00 $20.00 130 60 $156,000.00 156,000.00 VR User LicenseAdditional$21.70 $17.36 25 60 $26,040.00 - $26,040.00 Basic License $15.00 $13.00 15 60 $11,700.00 - $11,700.00 Pro License $39.00 $33.80 23 60 $46,644.00 $46,644.00
Standards
Implementation**
$30,000.00 $29,952.00 1 $29,952.00 $29,952.00
Total $60,851.36 $1,736,487.5
2 *OSP Plan includes Taser 7 (including training supplies), Axon Respond, and Axon Standards and Technology Assurance Plan.
**A discount was provided in this contract through negotiations to offset this cost.

The no cost items listed below in table 3, have a value of $95,205 and will only cost the City taxes on the equipment of $2,261.97 if purchased with the items listed in table 2 above.

Table 3
No Cost Additional Items for Table 2
Package Options List Price Net Price Qty Term Subtotal Tax Total VR Headset $1,935.00 $1,935.00 6 $11,610.00 $986.00 $12,596.00 Extra Left-Handed
Holster
$91.25 $27.79 2 $182.50 $15.51 $198.01
Extra Right-Handed
Holster
$91.25 $91.25 2 $182.50 $15.51 $198.01
Taser Target Frame $85.55 $85.55 4 $342.20 $29.09 $371.09 Taser Conductive
Target
$171.05 $171.05 4 $684.20 $58.16 $742.36
Axon Camera
Bundle
$749.00 $27.79 130 $3,612.70 $307.70 $3,919.77
Axon Investigate
License
$250.00 $250.00 3 60 $45,000.00 - $45,000.00
Axon Air Data
License
$32.55 $32.55 10 60 $21,330.00 - $21,330.00
Axon Migrate
Channel Service
$10,000.00 $10,000.00 1 $10,000.00 $850.00 $10,850.00
Total $2,261.97 $95,205.24
Visalia City Council Page 6 of 8 Printed on 4/28/2023
powered by Legistar™522
File #: 23-0148 Agenda Date: 5/1/2023 Agenda #: 2.

Fiscal Impact:

Patrol Vehicle
As indicated in the table below, staff request an additional appropriation of $45,100 in FY 22/23 and $18,200 in FY 23/24 to address a $63,300 budget shortfall for the purchase of three patrol vehicles.

Fund CIP Qty Unit Cost Budget Budget
Available
FY
141 VH0214 1 $80,000 $56,000 ($24,000.00) 21/22
141 VH0253 1 $80,000 $58,900 ($21,100.00) 22/23A
141 VH0253 1 $80,000 $61,800 ($18,200.00) 23/24
Funds Needed ($63,300.0
0)
Body-Worn Camera
As indicated in the Table below, staff requests a total allocation of $1,738,750 with payment schedule described below:

Year 1 Year 2 Year 3 Year 4 Year 5 Total
Equipment
& Services
$301,599 $326,687 $337,608 $348,965 $360,777 $1,675,636 Tax $13,513 $11,693 $12,152 $12,630 $13,126 $63,114
Total $315,112 $338,380 $349,760 $361,595 $373,904 $1,738,750 Staff is requesting an additional appropriation of $128,112 for FY 23/24.

Prior Council Action: June 18, 2018 - Council awarded $815,618 for BWC program with Axon Enterprise.

Other: N/A
Alternatives: Deny motion directing staff to enter into Measure N amendment process.

Recommended Motion (and Alternative Motions if expected):

Authorize City staff to initiate the Measure N amendment process to increase the budget for patrol vehicles and body-worn cameras.

Environmental Assessment Status: N/A
Visalia City Council Page 7 of 8 Printed on 4/28/2023
powered by Legistar™523
File #: 23-0148 Agenda Date: 5/1/2023 Agenda #: 2.

CEQA Review: N/A
Attachments: Axon Enterprise Quote.

Visalia City Council Page 8 of 8 Printed on 4/28/2023
powered by Legistar™524
Master Services and Purchasing Agreement for Agency
Title: Master Services and Purchasing Agreement between Axon and Agency Department: Legal
Version: 15.0
Release Date: 8/31/2022 Page 1 of 19
This Master Services and Purchasing Agreement (“Agreement”) is between Axon Enterprise, Inc., a Delaware corporation (“Axon”), and the agency listed below or, if no agency is listed below, the agency on the Quote attached hereto (“Agency”). This Agreement is effective as of the later of the (a) last signature date on this Agreement or (b) signature date on the Quote (“Effective Date”). Axon and Agency are each a “Party” and collectively “Parties”. This Agreement governs Agency’s purchase and use of the Axon Devices and Services detailed in the Quote Appendix (“Quote”). It is the intent of the Parties that this Agreement act as a master agreement governing all subsequent purchases by Agency for the same Axon Devices and Services in the Quote, and all such subsequent quotes accepted by Agency shall be also incorporated into this Agreement by reference as a Quote. The Parties agree as follows:

1. Definitions.

1.1. “Axon Cloud Services” means Axon’s web services for Axon Evidence, Axon Records, Axon Dispatch, and interactions between Axon Evidence and Axon Devices or Axon client software. Axon Cloud Service excludes third-party applications, hardware warranties, and my.evidence.com.

1.2. “Axon Device” means all hardware provided by Axon under this Agreement.

1.3. “Quote” means an offer to sell and is only valid for devices and services on the quote at the specified prices.

Any terms within Agency’s purchase order in response to a Quote will be void. Orders are subject to prior credit approval. Changes in the deployment estimated ship date may change charges in the Quote. Shipping dates are estimates only. Axon is not responsible for typographical errors in any offer by Axon, and Axon reserves the right to cancel any orders resulting from such errors.

1.4. “Services” means all services provided by Axon under this Agreement, including software, Axon Cloud Services, and professional services.

2. Term. This Agreement begins on the Effective Date and continues until all subscriptions hereunder have expired or have been terminated (“Term”).

2.1. All subscriptions including Axon Evidence, Axon Fleet, Officer Safety Plans, Technology Assurance Plans, and TASER 7 plans begin on the date stated in the Quote. Each subscription term ends upon completion of the subscription stated in the Quote (“Subscription Term”).

2.2. Upon completion of the Subscription Term, the Subscription Term will automatically renew for an additional 5 years (“Renewal Term”) unless Agency provides Axon with written notice of nonrenewal at least 60 days prior to the end of the Subscription Term or Renewal Term. For purchase of TASER 7 as a standalone, Axon may increase pricing to its then-current list pricing for any Renewal Term. For all other purchases, Axon may increase pricing on all line items in the Quote up to 3% at the beginning of each year of the Renewal Term.

New devices and services may require additional terms. Axon will not authorize services until Axon receives a signed Quote or accepts a purchase order, whichever is first.

3. Payment. Axon invoices upon shipment, or on the date specified within the invoicing plan in the Quote. Payment is due net 30 days from the invoice date. Payment obligations are non-cancelable. Unless otherwise prohibited by law, Agency will pay interest on all past-due sums at the lower of one-and-a-half percent (1.5%) per month or the highest rate allowed by law. Agency will pay invoices without setoff, deduction, or withholding. If Axon sends a past due account to collections, Agency is responsible for collection and attorneys’ fees.

4. Taxes. Agency is responsible for sales and other taxes associated with the order unless Agency provides Axon a valid tax exemption certificate.

5. Shipping. Axon may make partial shipments and ship Axon Devices from multiple locations. All shipments are EXW (Incoterms 2020) via common carrier. Title and risk of loss pass to Agency upon receipt. Agency is responsible for any shipping charges in the Quote.

6. Returns. All sales are final. Axon does not allow refunds or exchanges, except warranty returns or as provided by state or federal law.

7. Warranty.

7.1. Limited Warranty; Disclaimer. Axon warrants that Axon-manufactured Devices are free from defects in workmanship and materials for 1 year from the date of Agency’s receipt, except Signal Sidearm and Axonmanufactured accessories, which Axon warrants for 30 months and 90 days, respectively, from the date of Agency’s receipt. Used conducted energy weapon (“CEW”) cartridges are deemed to have operated properly.

Extended warranties run from the expiration of the 1-year hardware warranty through the extended warranty term. All software and Axon Cloud Services, are provided "AS IS," without any warranty of any kind, either express or implied, including without limitation the implied warranties of merchantability, fitness for a particular purpose and non-infringement. Axon Devices, software, and services that are not manufactured, published or performed by Axon (“Third-Party Products”) are not covered by Axon’s 525
Master Services and Purchasing Agreement for Agency
Title: Master Services and Purchasing Agreement between Axon and Agency Department: Legal
Version: 15.0
Release Date: 8/31/2022 Page 2 of 19
warranty and are only subject to the warranties of the third-party provider or manufacturer.

7.2. Claims. If Axon receives a valid warranty claim for an Axon-manufactured Device during the warranty term, Axon’s sole responsibility is to repair or replace the Axon-manufactured Device with the same or like Axonmanufactured Device, at Axon’s option. A replacement Axon-manufactured Device will be new or like new.

Axon will warrant the replacement Axon-manufactured Device for the longer of (a) the remaining warranty of the original Axon Manufactured Device or (b) 90-days from the date of repair or replacement.

7.2.1. If Agency exchanges a device or part, the replacement item becomes Agency’s property, and the replaced item becomes Axon’s property. Before delivering an Axon-manufactured Device for service, Agency must upload Axon-manufactured Device data to Axon Evidence or download it and retain a copy. Axon is not responsible for any loss of software, data, or other information contained in storage media or any part of the Axon-manufactured Device sent to Axon for service.

7.3. Spare Axon Devices. At Axon's reasonable discretion, Axon may provide Agency a predetermined number of spare Axon Devices as detailed in the Quote (“Spare Axon Devices”). Spare Axon Devices are intended to replace broken or non-functioning units while Agency submits the broken or non-functioning units, through Axon’s warranty return process. Axon will repair or replace the unit with a replacement Axon Device. Title and risk of loss for all Spare Axon Devices shall pass to Agency in accordance with shipping terms under Section

5. Axon assumes no liability or obligation in the event Agency does not utilize Spare Axon Devices for the intended purpose.

7.4. Limitations. Axon’s warranty excludes damage related to: (a) failure to follow Axon Device use instructions; (b) Axon Devices used with equipment not manufactured or recommended by Axon; (c) abuse, misuse, or intentional damage to Axon Device; (d) force majeure; (e) Axon Devices repaired or modified by persons other than Axon without Axon’s written permission; or (f) Axon Devices with a defaced or removed serial number.

Axon’s warranty will be void if Agency resells Axon Devices.

7.4.1. To the extent permitted by law, the above warranties and remedies are exclusive. Axon disclaims all other warranties, remedies, and conditions, whether oral, written, statutory, or implied. If statutory or implied warranties cannot be lawfully disclaimed, then such warranties are limited to the duration of the warranty described above and by the provisions in this Agreement.

7.4.2. Axon’s cumulative liability to any Party for any loss or damage resulting from any claim, demand, or action arising out of or relating to any Axon Device or Service will not exceed the purchase price paid to Axon for the Axon Device, or if for Services, the amount paid for such Services over the 12 months preceding the claim. Neither Party will be liable for direct, special, indirect, incidental, punitive or consequential damages, however caused, whether for breach of warranty or contract, negligence, strict liability, tort or any other legal theory.

7.5. Online Support Platforms. Use of Axon's online support platforms (e.g., Axon Academy and MyAxon) is governed by the Axon Online Support Platforms Terms of Use Appendix available at www.axon.com/salesterms-and-conditions.

7.6. Third-Party Software and Services. Use of software or services other than those provided by Axon is governed by the terms, if any, entered into between Agency and the respective third-party provider, including, without limitation, the terms applicable to such software or services located at www.axon.com/sales-terms-andconditions, if any.

7.7. Axon Aid. Upon mutual agreement between Axon and Agency, Axon may provide certain products and services to Agency, as a charitable donation under the Axon Aid program. In such event, Agency expressly waives and releases any and all claims, now known or hereafter known, against Axon, and its officers, directors, employees, agents, contractors, affiliates, successors, and assigns (collectively, "Releasees"), including but not limited to, on account of injury, death, property damage, or loss of data, arising out of or attributable to the Axon Aid program whether arising out of the negligence of Axon or any Releasees or otherwise. Agency agrees not to make or bring any such claim against Axon or any other Releasee, and forever release and discharge Axon and all other Releasees from liability under such claims. Agency expressly allows Axon to publicly announce its participation in Axon Aid and use its name in marketing materials. Axon may terminate the Axon Aid program without cause immediately upon notice to the Agency.

8. Statement of Work. Certain Axon Devices and Services, including Axon Interview Room, Axon Channel Services, and Axon Fleet, may require a Statement of Work that details Axon’s Service deliverables (“SOW”). In the event Axon provides an SOW to Agency, Axon is only responsible to perform Services described in the SOW. Additional services are out of scope. The Parties must document scope changes in a written and signed change order. Changes may require an equitable adjustment in fees or schedule. The SOW is incorporated into this Agreement by reference. 526
Master Services and Purchasing Agreement for Agency
Title: Master Services and Purchasing Agreement between Axon and Agency Department: Legal
Version: 15.0
Release Date: 8/31/2022 Page 3 of 19

9. Axon Device Warnings. See www.axon.com/legal for the most current Axon Device warnings.

10. Design Changes. Axon may make design changes to any Axon Device or Service without notifying Agency or making the same change to Axon Devices and Services previously purchased by Agency.

11. Bundled Offerings. Some offerings in bundled offerings may not be generally available at the time of Agency’s purchase. Axon will not provide a refund, credit, or additional discount beyond what is in the Quote due to a delay of availability or Agency’s election not to utilize any portion of an Axon bundle.

12. Insurance. Axon will maintain General Liability, Workers’ Compensation, and Automobile Liability insurance. Upon request, Axon will supply certificates of insurance.

13. IP Rights. Axon owns and reserves all right, title, and interest in Axon-manufactured Devices and Services and suggestions to Axon, including all related intellectual property rights. Agency will not cause any Axon proprietary rights to be violated.

14. IP Indemnification. Axon will indemnify Agency Indemnitees against all claims, losses, and reasonable expenses from any third-party claim alleging that the use of Axon-manufactured Devices or Services infringes or misappropriates the third-party’s intellectual property rights. Agency must promptly provide Axon with written notice of such claim, tender to Axon the defense or settlement of such claim at Axon’s expense and cooperate fully with Axon in the defense or settlement of such claim. Axon’s IP indemnification obligations do not apply to claims based on (a) modification of Axon-manufactured Devices or Services by Agency or a third-party not approved by Axon; (b) use of Axon-manufactured Devices and Services in combination with hardware or services not approved by Axon; (c) use of Axon Devices and Services other than as permitted in this Agreement; or (d) use of Axon software that is not the most current release provided by Axon.

15. Agency Responsibilities. Agency is responsible for (a) Agency’s use of Axon Devices; (b) breach of this Agreement or violation of applicable law by Agency or an Agency end user; (c) a dispute between Agency and a third-party over Agency’s use of Axon Devices; (d) to ensure Axon Devices are destroyed and disposed of securely and sustainably at Agency’s cost; and (e) any regulatory violations or fines, as a result of improper destruction or disposal of Axon Devices.

16. Termination.

16.1. For Breach. A Party may terminate this Agreement for cause if it provides 30 days written notice of the breach to the other Party, and the breach remains uncured at the end of 30 days. If Agency terminates this Agreement due to Axon’s uncured breach, Axon will refund prepaid amounts on a prorated basis based on the effective date of termination.

16.2. By Agency. If sufficient funds are not appropriated or otherwise legally available to pay the fees, Agency may terminate this Agreement. Agency will deliver notice of termination under this section as soon as reasonably practicable. In addition, and separately from the right of termination for lack of funds, Agency may terminate this Agreement at its discretion without cause by providing Axon with 12 months prior written notice of termination.

16.3. Effect of Termination. Upon termination of this Agreement, Agency rights immediately terminate. Agency remains responsible for all fees incurred before the effective date of termination. If Agency purchases Axon Devices for less than the manufacturer’s suggested retail price (“MSRP”) and this Agreement terminates before the end of the Term, Axon will invoice Agency the difference between the MSRP for Axon Devices received, including any Spare Axon Devices, and amounts paid towards those Axon Devices. Only if terminating for nonappropriation, Agency may return Axon Devices to Axon within 30 days of termination. MSRP is the standalone price of the individual Axon Device at the time of sale. For bundled Axon Devices, MSRP is the standalone price of all individual components.

17. Confidentiality. “Confidential Information” means nonpublic information designated as confidential or, given the nature of the information or circumstances surrounding disclosure, should reasonably be understood to be confidential. Each Party will take reasonable measures to avoid disclosure, dissemination, or unauthorized use of the other Party’s Confidential Information. Unless required by law, neither Party will disclose the other Party’s Confidential Information during the Term and for 5 years thereafter. To the extent permissible by law, Axon pricing is Confidential Information and competition sensitive. If Agency receives a public records request to disclose Axon Confidential Information, to the extent allowed by law, Agency will provide notice to Axon before disclosure. Axon may publicly announce information related to this Agreement.

18. General.

18.1. Force Majeure. Neither Party will be liable for any delay or failure to perform due to a cause beyond a Party’s reasonable control.
527
Master Services and Purchasing Agreement for Agency
Title: Master Services and Purchasing Agreement between Axon and Agency Department: Legal
Version: 15.0
Release Date: 8/31/2022 Page 4 of 19

18.2. Independent Contractors. The Parties are independent contractors. Neither Party has the authority to bind the other. This Agreement does not create a partnership, franchise, joint venture, agency, fiduciary, or employment relationship between the Parties.

18.3. Third-Party Beneficiaries. There are no third-party beneficiaries under this Agreement.

18.4. Non-Discrimination. Neither Party nor its employees will discriminate against any person based on race; religion; creed; color; sex; gender identity and expression; pregnancy; childbirth; breastfeeding; medical conditions related to pregnancy, childbirth, or breastfeeding; sexual orientation; marital status; age; national origin; ancestry; genetic information; disability; veteran status; or any class protected by local, state, or federal law.

18.5. Export Compliance. Each Party will comply with all import and export control laws and regulations.

18.6. Assignment. Neither Party may assign this Agreement without the other Party’s prior written consent. Axon may assign this Agreement, its rights, or obligations without consent: (a) to an affiliate or subsidiary; or (b) for purposes of financing, merger, acquisition, corporate reorganization, or sale of all or substantially all its assets.

This Agreement is binding upon the Parties respective successors and assigns.

18.7. Waiver. No waiver or delay by either Party in exercising any right under this Agreement constitutes a waiver of that right.

18.8. Severability. If a court of competent jurisdiction holds any portion of this Agreement invalid or unenforceable, the remaining portions of this Agreement will remain in effect.

18.9. Survival. The following sections will survive termination: Payment, Warranty, Axon Device Warnings, Indemnification, IP Rights, and Agency Responsibilities.

18.10. Governing Law. The laws of the state where Agency is physically located, without reference to conflict of law rules, govern this Agreement and any dispute arising from it. The United Nations Convention for the International Sale of Goods does not apply to this Agreement.

18.11. Notices. All notices must be in English. Notices posted on Agency’s Axon Evidence site are effective upon posting. Notices by email are effective on the sent date of the email. Notices by personal delivery are effective immediately. Notices to Agency shall be provided to the address on file with Axon. Notices to Axon shall be provided to Axon Enterprise, Inc., Attn: Legal, 17800 North 85th Street, Scottsdale, Arizona 85255 with a copy to [email protected].

18.12 Entire Agreement. This Agreement, including the Appendices and any SOW(s), represents the entire agreement between the Parties. This Agreement supersedes all prior agreements or understandings, whether written or verbal, regarding the subject matter of this Agreement. This Agreement may only be modified or amended in a writing signed by the Parties.

Each Party, by and through its respective representative authorized to execute this Agreement, has duly executed and delivered this Agreement as of the date of signature.

AXON: AGENCY:

Axon Enterprise, Inc. Visalia Police Department
Signature: Signature:

Name: Name:

Title: Title:

Date: Date:
528
Master Services and Purchasing Agreement for Agency
Title: Master Services and Purchasing Agreement between Axon and Agency Department: Legal
Version: 15.0
Release Date: 8/31/2022 Page 5 of 19
Axon Cloud Services Terms of Use Appendix

1. Definitions.

1.1. “Agency Content” is data uploaded into, ingested by, or created in Axon Cloud Services within Agency’s tenant, including media or multimedia uploaded into Axon Cloud Services by Agency. Agency Content includes Evidence but excludes Non-Content Data.

1.2. “Evidence” is media or multimedia uploaded into Axon Evidence as 'evidence' by an Agency. Evidence is a subset of Agency Content.

1.3. “Non-Content Data” is data, configuration, and usage information about Agency’s Axon Cloud Services tenant, Axon Devices and client software, and users that is transmitted or generated when using Axon Devices. NonContent Data includes data about users captured during account management and customer support activities.

Non-Content Data does not include Agency Content.

1.4. “Personal Data” means any information relating to an identified or identifiable natural person. An identifiable natural person is one who can be identified, directly or indirectly, in particular by reference to an identifier such as a name, an identification number, location data, an online identifier or to one or more factors specific to the physical, physiological, genetic, mental, economic, cultural or social identity of that natural person.

2. Access. Upon Axon granting Agency a subscription to Axon Cloud Services, Agency may access and use Axon Cloud Services to store and manage Agency Content. Agency may not exceed more end users than the Quote specifies. Axon Air requires an Axon Evidence subscription for each drone operator. For Axon Evidence Lite, Agency may access and use Axon Evidence only to store and manage TASER CEW and TASER CAM data (“TASER Data”).

Agency may not upload non-TASER Data to Axon Evidence Lite.

3. Agency Owns Agency Content. Agency controls and owns all right, title, and interest in Agency Content. Except as outlined herein, Axon obtains no interest in Agency Content, and Agency Content is not Axon’s business records.

Agency is solely responsible for uploading, sharing, managing, and deleting Agency Content. Axon will only have access to Agency Content for the limited purposes set forth herein. Agency agrees to allow Axon access to Agency Content to (a) perform troubleshooting, maintenance, or diagnostic screenings; and (b) enforce this Agreement or policies governing use of the Axon products.

4. Security. Axon will implement commercially reasonable and appropriate measures to secure Agency Content against accidental or unlawful loss, access or disclosure. Axon will maintain a comprehensive information security program to protect Axon Cloud Services and Agency Content including logical, physical access, vulnerability, risk, and configuration management; incident monitoring and response; encryption of uploaded digital evidence; security education; and data protection. Axon agrees to the Federal Bureau of Investigation Criminal Justice Information Services Security Addendum.

5. Agency Responsibilities. Agency is responsible for (a) ensuring Agency owns Agency Content; (b) ensuring no Agency Content or Agency end user’s use of Agency Content or Axon Cloud Services violates this Agreement or applicable laws; and (c) maintaining necessary computer equipment and Internet connections for use of Axon Cloud Services. If Agency becomes aware of any violation of this Agreement by an end user, Agency will immediately terminate that end user’s access to Axon Cloud Services.

5.1. Agency will also maintain the security of end usernames and passwords and security and access by end users to Agency Content. Agency is responsible for ensuring the configuration and utilization of Axon Cloud Services meet applicable Agency regulation and standards. Agency may not sell, transfer, or sublicense access to any other entity or person. Agency shall contact Axon immediately if an unauthorized party may be using Agency’s account or Agency Content, or if account information is lost or stolen.

5.2. To the extent Agency uses the Axon Cloud Services to interact with YouTube®, such use may be governed by the YouTube Terms of Service, available at https://www.youtube.com/static?template=terms.

6. Privacy. Agency’s use of Axon Cloud Services is subject to the Axon Cloud Services Privacy Policy, a current version of which is available at https://www.axon.com/legal/cloud-services-privacy-policy. Agency agrees to allow Axon access to Non-Content Data from Agency to (a) perform troubleshooting, maintenance, or diagnostic screenings; (b) provide, develop, improve, and support current and future Axon products and related services; and (c) enforce this Agreement or policies governing the use of Axon products. 529
Master Services and Purchasing Agreement for Agency
Title: Master Services and Purchasing Agreement between Axon and Agency Department: Legal
Version: 15.0
Release Date: 8/31/2022 Page 6 of 19

7. Axon Body 3 Wi-Fi Positioning. Axon Body 3 cameras offer a feature to enhance location services where GPS/GNSS signals may not be available, for instance, within buildings or underground. Agency administrators can manage their choice to use this service within the administrative features of Axon Cloud Services. If Agency chooses to use this service, Axon must also enable the usage of the feature for Agency’s Axon Cloud Services tenant. Agency will not see this option with Axon Cloud Services unless Axon has enabled Wi-Fi Positioning for Agency’s Axon Cloud Services tenant. When Wi-Fi Positioning is enabled by both Axon and Agency, Non-Content and Personal Data will be sent to Skyhook Holdings, Inc. (“Skyhook”) to facilitate the Wi-Fi Positioning functionality. Data controlled by Skyhook is outside the scope of the Axon Cloud Services Privacy Policy and is subject to the Skyhook Services Privacy Policy.

8. Storage. For Axon Unlimited Device Storage subscriptions, Agency may store unlimited data in Agency's Axon Evidence account only if data originates from Axon Capture or the applicable Axon Device. Axon may charge Agency additional fees for exceeding purchased storage amounts. Axon may place Agency Content that Agency has not viewed or accessed for 6 months into archival storage. Agency Content in archival storage will not have immediate availability and may take up to 24 hours to access.

For Third-Party Unlimited Storage the following restrictions apply: (i) it may only be used in conjunction with a valid Axon’s Evidence.com user license; (ii) is limited to data of the law enforcement agency that purchased the ThirdParty Unlimited Storage and the Axon’s Evidence.com end user or Agency is prohibited from storing data for other law enforcement agencies; and (iii) Agency may only upload and store data that is directly related to: (1) the investigation of, or the prosecution of a crime; (2) common law enforcement activities; or (3) any Agency Content created by Axon Devices or Evidence.com.

9. Location of Storage. Axon may transfer Agency Content to third-party subcontractors for storage. Axon will determine the locations of data centers for storage of Agency Content. For United States agencies, Axon will ensure all Agency Content stored in Axon Cloud Services remains within the United States. Ownership of Agency Content remains with Agency.

10. Suspension. Axon may temporarily suspend Agency’s or any end user’s right to access or use any portion or all of Axon Cloud Services immediately upon notice, if Agency or end user’s use of or registration for Axon Cloud Services may (a) pose a security risk to Axon Cloud Services or any third-party; (b) adversely impact Axon Cloud Services , the systems, or content of any other customer; (c) subject Axon, Axon’s affiliates, or any third-party to liability; or (d) be fraudulent. Agency remains responsible for all fees incurred through suspension. Axon will not delete Agency Content because of suspension, except as specified in this Agreement.

11. Axon Cloud Services Warranty. Axon disclaims any warranties or responsibility for data corruption or errors before Agency uploads data to Axon Cloud Services. Service Offerings will be subject to the Axon Cloud Services Service Level Agreement, a current version of which is available at https://www.axon.com/products/axon-evidence/sla.

12. Axon Records. Axon Records is the software-as-a-service product that is generally available at the time Agency purchases an OSP 7 bundle. During Agency’s Axon Records Subscription Term, if any, Agency will be entitled to receive Axon’s Update and Upgrade releases on an if-and-when available basis.

12.1. The Axon Records Subscription Term will end upon the completion of the Axon Records Subscription as documented in the Quote, or if purchased as part of an OSP 7 bundle, upon completion of the OSP 7 Term (“Axon Records Subscription”)

12.2. An “Update” is a generally available release of Axon Records that Axon makes available from time to time. An “Upgrade” includes (i) new versions of Axon Records that enhance features and functionality, as solely determined by Axon; and/or (ii) new versions of Axon Records that provide additional features or perform additional functions. Upgrades exclude new products that Axon introduces and markets as distinct products or applications.

12.3. New or additional Axon products and applications, as well as any Axon professional services needed to configure Axon Records, are not included. If Agency purchases Axon Records as part of a bundled offering, the Axon Record subscription begins on the later of the (1) start date of that bundled offering, or (2) date Axon provisions Axon Records to Agency.

12.4. Users of Axon Records at the agency may upload files to entities (incidents, reports, cases, etc) in Axon Records with no limit to the number of files and amount of storage. Notwithstanding the foregoing, Axon may limit usage should the Agency exceed an average rate of 100 GB per user per year of uploaded files. Axon will not bill for overages.
530
Master Services and Purchasing Agreement for Agency
Title: Master Services and Purchasing Agreement between Axon and Agency Department: Legal
Version: 15.0
Release Date: 8/31/2022 Page 7 of 19

13. Axon Cloud Services Restrictions. Agency and Agency end users (including employees, contractors, agents, officers, volunteers, and directors), may not, or may not attempt to:

13.1. copy, modify, tamper with, repair, or create derivative works of any part of Axon Cloud Services;

13.2. reverse engineer, disassemble, or decompile Axon Cloud Services or apply any process to derive any source code included in Axon Cloud Services, or allow others to do the same;

13.3. access or use Axon Cloud Services with the intent to gain unauthorized access, avoid incurring fees or exceeding usage limits or quotas;

13.4. use trade secret information contained in Axon Cloud Services, except as expressly permitted in this Agreement;

13.5. access Axon Cloud Services to build a competitive device or service or copy any features, functions, or graphics of Axon Cloud Services;

13.6. remove, alter, or obscure any confidentiality or proprietary rights notices (including copyright and trademark notices) of Axon’s or Axon’s licensors on or within Axon Cloud Services; or

13.7. use Axon Cloud Services to store or transmit infringing, libelous, or other unlawful or tortious material; to store or transmit material in violation of third-party privacy rights; or to store or transmit malicious code.

14. After Termination. Axon will not delete Agency Content for 90 days following termination. There will be no functionality of Axon Cloud Services during these 90 days other than the ability to retrieve Agency Content. Agency will not incur additional fees if Agency downloads Agency Content from Axon Cloud Services during this time. Axon has no obligation to maintain or provide Agency Content after these 90-days and will thereafter, unless legally prohibited, delete all Agency Content. Upon request, Axon will provide written proof that Axon successfully deleted and fully removed all Agency Content from Axon Cloud Services.

15. Post-Termination Assistance. Axon will provide Agency with the same post-termination data retrieval assistance that Axon generally makes available to all customers. Requests for Axon to provide additional assistance in downloading or transferring Agency Content, including requests for Axon’s data egress service, will result in additional fees and Axon will not warrant or guarantee data integrity or readability in the external system.

16. U.S. Government Rights. If Agency is a U.S. Federal department or using Axon Cloud Services on behalf of a U.S. Federal department, Axon Cloud Services is provided as a “commercial item,” “commercial computer software,” “commercial computer software documentation,” and “technical data”, as defined in the Federal Acquisition Regulation and Defense Federal Acquisition Regulation Supplement. If Agency is using Axon Cloud Services on behalf of the U.S. Government and these terms fail to meet the U.S. Government’s needs or are inconsistent in any respect with federal law, Agency will immediately discontinue use of Axon Cloud Services.

17. Survival. Upon any termination of this Agreement, the following sections in this Appendix will survive: Agency Owns Agency Content, Privacy, Storage, Axon Cloud Services Warranty, and Axon Cloud Services Restrictions.

531
Master Services and Purchasing Agreement for Agency
Title: Master Services and Purchasing Agreement between Axon and Agency Department: Legal
Version: 15.0
Release Date: 8/31/2022 Page 8 of 19
Axon Customer Experience Improvement Program Appendix

1. Axon Customer Experience Improvement Program (ACEIP). The ACEIP is designed to accelerate Axon’s development of technology, such as building and supporting automated features, to ultimately increase safety within communities and drive efficiency in public safety. To this end, subject to the limitations on Axon as described below, Axon, where allowed by law, may make limited use of Agency Content from all of its customers, to provide, develop, improve, and support current and future Axon products (collectively, “ACEIP Purposes”). However, at all times, Axon will comply with its obligations pursuant to the Axon Cloud Services Terms of Use Appendix to maintain a comprehensive data security program (including compliance with the CJIS Security Policy for Criminal Justice Information), privacy program, and data governance policy, including high industry standards of de-identifying Personal Data, to enforce its security and privacy obligations for the ACEIP. ACEIP has 2 tiers of participation, Tier 1 and Tier 2. By default, Agency will be a participant in ACEIP Tier 1. If Agency does not want to participate in ACEIP Tier 1, Agency can revoke its consent at any time. If Agency wants to participate in Tier 2, as detailed below, Agency can check the ACEIP Tier 2 box below. If Agency does not want to participate in ACEIP Tier 2, Agency should leave box unchecked. At any time, Agency may revoke its consent to ACEIP Tier 1, Tier 2, or both Tiers.

2. ACEIP Tier 1.

2.1. When Axon uses Agency Content for the ACEIP Purposes, Axon will extract from Agency Content and may store separately copies of certain segments or elements of the Agency Content (collectively, “ACEIP Content”). When extracting ACEIP Content, Axon will use commercially reasonable efforts to aggregate, transform or de-identify Agency Content so that the extracted ACEIP Content is no longer reasonably capable of being associated with, or could reasonably be linked directly or indirectly to a particular individual (“Privacy Preserving Technique(s)”). For illustrative purposes, some examples are described in footnote 11. For clarity, ACEIP Content will still be linked indirectly, with an attribution, to the Agency from which it was extracted. This attribution will be stored separately from the data itself, but is necessary for and will be solely used to enable Axon to identify and delete all ACEIP Content upon Agency request.

Once de-identified, ACEIP Content may then be further modified, analyzed, and used to create derivative works. At any time, Agency may revoke the consent granted herein to Axon to access and use Agency Content for ACEIP Purposes. Within 30 days of receiving the Agency’s request, Axon will no longer access or use Agency Content for ACEIP Purposes and will delete any and all ACEIP Content. Axon will also delete any derivative works which may reasonably be capable of being associated with, or could reasonably be linked directly or indirectly to Agency. In addition, if Axon uses Agency Content for the ACEIP Purposes, upon request, Axon will make available to Agency a list of the specific type of Agency Content being used to generate ACEIP Content, the purpose of such use, and the retention, privacy preserving extraction technique, and relevant data protection practices applicable to the Agency Content or ACEIP Content (“Use Case”). From time to time, Axon may develop and deploy new Use Cases. At least 30 days prior to authorizing the deployment of any new Use Case, Axon will provide Agency notice (by updating the list of Use Case at https://www.axon.com/aceip and providing Agency with a mechanism to obtain notice of that update or another commercially reasonable method to Agency designated contact) (“New Use Case”).

2.2. Expiration of ACEIP Tier 1. Agency consent granted herein, will expire upon termination of the Agreement. In accordance with section 1.1.1, within 30 days of receiving the Agency’s request, Axon will no longer access or use Agency Content for ACEIP Purposes and will delete ACEIP Content. Axon will also delete any derivative works which may reasonably be capable of being associated with, or could reasonably be linked directly or indirectly to Agency.

3. ACEIP Tier 2. In addition to ACEIP Tier 1, if Agency wants to help further improve Axon’s services, Agency may 1 For example; (a) when extracting specific text to improve automated transcription capabilities, text that could be used to directly identify a particular individual would not be extracted, and extracted text would be disassociated from identifying metadata of any speakers, and the extracted text would be split into individual words and aggregated with other data sources (including publicly available data) to remove any reasonable ability to link any specific text directly or indirectly back to a particular individual; (b) when extracting license plate data to improve Automated License Plate Recognition (ALPR) capabilities, individual license plate characters would be extracted and disassociated from each other so a complete plate could not be reconstituted, and all association to other elements of the source video, such as the vehicle, location, time, and the surrounding environment would also be removed; (c) when extracting audio of potential acoustic events (such as glass breaking or gun shots), very short segments (<1 second) of audio that only contains the likely acoustic events would be extracted and all human utterances would be removed. 532
Master Services and Purchasing Agreement for Agency
Title: Master Services and Purchasing Agreement between Axon and Agency Department: Legal
Version: 15.0
Release Date: 8/31/2022 Page 9 of 19
choose to participate in Tier 2 of the ACEIP. ACEIP Tier 2 grants Axon certain additional rights to use Agency Content, in addition to those set forth in Tier 1 above, without the guaranteed deployment of a Privacy Preserving Technique to enable product development, improvement, and support that cannot be accomplished with aggregated, transformed or de-identified data.
☐ Check this box if Agency wants to help further improve Axon’s services by participating in ACEIP Tier 2 in addition to Tier 1. Axon will not enroll Agency into ACEIP Tier 2 until Axon and Agency agree to terms in writing providing for such participation in ACEIP Tier 2.
533
Master Services and Purchasing Agreement for Agency
Title: Master Services and Purchasing Agreement between Axon and Agency Department: Legal
Version: 15.0
Release Date: 8/31/2022 Page 10 of 19
Technology Assurance Plan Appendix
If Technology Assurance Plan (“TAP”) or a bundle including TAP is on the Quote, this appendix applies.

1. TAP Warranty. The TAP warranty is an extended warranty that starts at the end of the 1-year hardware limited warranty.

2. Officer Safety Plan. If Agency purchases an Officer Safety Plan (“OSP”), Agency will receive the deliverables detailed in the Quote. Agency must accept delivery of the TASER CEW and accessories as soon as available from Axon.

3. OSP 7 Term. OSP 7 begins on the date specified in the Quote (“OSP 7 Term”).

4. TAP BWC Upgrade. If Agency has no outstanding payment obligations and purchased TAP, Axon will provide Agency a new Axon body-worn camera (“BWC Upgrade”) as scheduled in the Quote. If Agency purchased TAP Axon will provide a BWC Upgrade that is the same or like Axon Device, at Axon’s option. Axon makes no guarantee the BWC Upgrade will utilize the same accessories or Axon Dock.

5. TAP Dock Upgrade. If Agency has no outstanding payment obligations and purchased TAP, Axon will provide Agency a new Axon Dock as scheduled in the Quote (“Dock Upgrade”). Accessories associated with any Dock Upgrades are subject to change at Axon discretion. Dock Upgrades will only include a new Axon Dock bay configuration unless a new Axon Dock core is required for BWC compatibility. If Agency originally purchased a single-bay Axon Dock, the Dock Upgrade will be a single-bay Axon Dock model that is the same or like Axon Device, at Axon’s option. If Agency originally purchased a multi-bay Axon Dock, the Dock Upgrade will be a multi-bay Axon Dock that is the same or like Axon Device, at Axon’s option.

6. Upgrade Delay. Axon may ship the BWC and Dock Upgrades as scheduled in the Quote without prior confirmation from Agency unless the Parties agree in writing otherwise at least 90 days in advance. Axon may ship the final BWC and Dock Upgrade as scheduled in the Quote 60 days before the end of the Subscription Term without prior confirmation from Agency.

7. Upgrade Change. If Agency wants to upgrade Axon Device models from the current Axon Device to an upgraded Axon Device, Agency must pay the price difference between the MSRP for the current Axon Device and the MSRP for the upgraded Axon Device. If the model Agency desires has an MSRP less than the MSRP of the offered BWC Upgrade or Dock Upgrade, Axon will not provide a refund. The MSRP is the MSRP in effect at the time of the upgrade.

8. Return of Original Axon Device. Within 30 days of receiving a BWC or Dock Upgrade, Agency must return the original Axon Devices to Axon or destroy the Axon Devices and provide a certificate of destruction to Axon including serial numbers for the destroyed Axon Devices. If Agency does not return or destroy the Axon Devices, Axon will deactivate the serial numbers for the Axon Devices received by Agency.

9. Termination. If Agency’s payment for TAP, OSP, or Axon Evidence is more than 30 days past due, Axon may terminate TAP or OSP. Once TAP or OSP terminates for any reason:

9.1. TAP and OSP coverage terminate as of the date of termination and no refunds will be given.

9.2. Axon will not and has no obligation to provide the Upgrade Models.

9.3. Agency must make any missed payments due to the termination before Agency may purchase any future TAP or OSP.
534
Master Services and Purchasing Agreement for Agency
Title: Master Services and Purchasing Agreement between Axon and Agency Department: Legal
Version: 15.0
Release Date: 8/31/2022 Page 11 of 19
TASER 7 Appendix
This TASER 7 Appendix applies to Agency’s TASER 7, OSP 7, or OSP 7 Plus purchase from Axon, if applicable.

1. Duty Cartridge Replenishment Plan. If the Quote includes “Duty Cartridge Replenishment Plan”, Agency must purchase the plan for each CEW user. A CEW user includes officers that use a CEW in the line of duty and those that only use a CEW for training. Agency may not resell cartridges received. Axon will only replace cartridges used in the line of duty.

2. Training. If the Quote includes a training voucher, Agency must use the voucher within 1 year of issuance, or the voucher will be void. Axon will issue Agency a voucher annually beginning on the start of the TASER Subscription Term. The voucher has no cash value. Agency cannot exchange it for another device or service. Unless stated in the Quote, the voucher does not include travel expenses and will be Agency’s responsibility. If the Quote includes Axon Online Training or Virtual Reality Content Empathy Development for Autism/Schizophrenia (collectively, “Training Content”), Agency may access Training Content. Axon will deliver all Training Content electronically.

3. TASER Upgrade. If Agency purchases Axon’s 10-year certification program for Axon’s latest version of its TASER energy weapon (“Certification Program”) and has no outstanding payment obligations as of the beginning of the 6th year of the Certification Program, Agency will qualify for an upgrade to any subsequent version of the Certification Program (“CEW Upgrade”). Agency will receive the CEW Upgrade at no additional cost, only to the extent such subsequent version of the Certification Program includes the same products or features as the Certification Program purchased by Agency. If Agency wants to upgrade to a Certification Program that includes additional products or features, Agency will pay the additional cost associated with such products and features. For the avoidance of doubt, Agency is not required to upgrade to any subsequent version of the Certification Program. Axon may ship the CEW Upgrade as scheduled in the Quote without prior confirmation from agency unless the Parties agree in writing otherwise at least 90 days in advance. If necessary to maintain compatibility among Axon Devices, within 30 days of receiving the CEW Upgrade, Agency must, if requested by Axon, return all hardware and related accessories received in connection with the Certification Program to Axon. In such event, Agency must ship batteries via ground shipping or in accordance with federal regulations in place at the time of the return. Axon will pay shipping costs for the return if Agency uses Axon’s RMA process.

4. Extended Warranty. If the Quote includes an extended warranty, the extended warranty coverage period warranty will be for a 5-year term, which includes the hardware manufacturer’s warranty plus the 4-year extended term.

5. Trade-in. If the Quote contains a discount on CEW-related line items, including items related to OSP, then that discount may only be applied as a trade-in credit, and Agency must return used hardware and accessories associated with the discount (“Trade-In Units”) to Axon. Agency must ship batteries via ground shipping. Axon will pay shipping costs of the return. If Axon does not receive Trade-In Units within the timeframe below, Axon will invoice Agency the value of the trade-in credit. Agency may not destroy Trade-In Units and receive a trade-in credit.

Agency Size Days to Return from Start Date of TASER 7 Subscription Less than 100 officers 30 days
100 to 499 officers 90 days
500+ officers 180 days

6. TASER 7 Subscription Term. The TASER 7 Subscription Term for a standalone TASER 7 purchase begins on shipment of the TASER 7 hardware. The TASER 7 Subscription Term for OSP 7 begins on the OSP 7 Start date.

7. Access Rights. Upon Axon granting Agency a TASER 7 Axon Evidence subscription, Agency may access and use Axon Evidence for the storage and management of data from TASER 7 CEW devices during the TASER 7 Subscription Term. Agency may not exceed the number of end users than the Quote specifies.

8. Privacy. Axon will not disclose Agency Content or any information about Agency except as compelled by a court or administrative body or required by any law or regulation. Axon will give notice if any disclosure request is received for Agency Content, so Agency may file an objection with the court or administrative body.

9. Termination. If payment for TASER 7 is more than 30 days past due, Axon may terminate Agency’s TASER 7 plan by notifying Agency. Upon termination for any reason, then as of the date of termination:

9.1. TASER 7 extended warranties and access to Training Content will terminate. No refunds will be given. 535
Master Services and Purchasing Agreement for Agency
Title: Master Services and Purchasing Agreement between Axon and Agency Department: Legal
Version: 15.0
Release Date: 8/31/2022 Page 12 of 19

9.2. Axon will invoice Agency the remaining MSRP for TASER 7 products received before termination. If terminating for non-appropriations, Axon will not invoice Agency if Agency returns the CEW, rechargeable battery, holster, dock, core, training suits, and unused cartridges to Axon within 30 days of the date of termination.

9.3. Agency will be responsible for payment of any missed payments due to the termination before being allowed to purchase any future TASER 7 plan.

536
Master Services and Purchasing Agreement for Agency
Title: Master Services and Purchasing Agreement between Axon and Agency Department: Legal
Version: 15.0
Release Date: 8/31/2022 Page 13 of 19
Axon Respond Appendix
This Axon Respond Appendix applies to both Axon Respond and Axon Respond Plus, if either is included on the Quote.

1. Axon Respond Subscription Term. If Agency purchases Axon Respond as part of a bundled offering, the Axon Respond subscription begins on the later of the (1) start date of that bundled offering, or (2) date Axon provisions Axon Respond to Agency. If Agency purchases Axon Respond as a standalone, the Axon Respond subscription begins the later of the (1) date Axon provisions Axon Respond to Agency, or (2) first day of the month following the Effective Date. The Axon Respond subscription term will end upon the completion of the Axon Evidence Subscription associated with Axon Respond.

2. Scope of Axon Respond. The scope of Axon Respond is to assist Agency with real-time situational awareness during critical incidents to improve officer safety, effectiveness, and awareness. In the event Agency uses Axon Respond outside this scope, Axon may initiate good-faith discussions with Agency on upgrading Agency’s Axon Respond to better meet Agency’s needs.

3. Axon Body 3 LTE Requirements. Axon Respond is only available and usable with an LTE enabled body-worn camera. Axon is not liable if Agency utilizes the LTE device outside of the coverage area or if the LTE carrier is unavailable. LTE coverage is only available in the United States, including any U.S. territories. Axon may utilize a carrier of Axon’s choice to provide LTE service. Axon may change LTE carriers during the Term without Agency’s consent.

4. Axon Fleet 3 LTE Requirements. Axon Respond is only available and usable with a Fleet 3 system configured with LTE modem and service. Agency is responsible for providing LTE service for the modem. Coverage and availability of LTE service is subject to Agency’s LTE carrier.

5. Axon Respond Service Limitations. Agency acknowledges that LTE service is made available only within the operating range of the networks. Service may be temporarily refused, interrupted, or limited because of: (a) facilities limitations; (b) transmission limitations caused by atmospheric, terrain, other natural or artificial conditions adversely affecting transmission, weak batteries, system overcapacity, movement outside a service area or gaps in coverage in a service area and other causes reasonably outside of the carrier’s control such as intentional or negligent acts of third parties that damage or impair the network or disrupt service; or (c) equipment modifications, upgrades, relocations, repairs, and other similar activities necessary for the proper or improved operation of service.

5.1. With regard to Axon Body 3, Partner networks are made available as-is and the carrier makes no warranties or representations as to the availability or quality of roaming service provided by carrier partners, and the carrier will not be liable in any capacity for any errors, outages, or failures of carrier partner networks. Agency expressly understands and agrees that it has no contractual relationship whatsoever with the underlying wireless service provider or its affiliates or contractors and Agency is not a third-party beneficiary of any agreement between Axon and the underlying carrier.

6. Termination. Upon termination of this Agreement, or if Agency stops paying for Axon Respond or bundles that include Axon Respond, Axon will end Axon Respond services, including any Axon-provided LTE service. 537
Master Services and Purchasing Agreement for Agency
Title: Master Services and Purchasing Agreement between Axon and Agency Department: Legal
Version: 15.0
Release Date: 8/31/2022 Page 14 of 19
Axon Virtual Reality Content Terms of Use Appendix
If Virtual Reality is included on the Quote, this Appendix applies.

1. Term. The Quote will detail the products and license duration, as applicable, of the goods, services, and software, and contents thereof, provided by Axon to Agency related to virtual reality (collectively, “Virtual Reality Media”).

2. Headsets. Agency may purchase additional virtual reality headsets from Axon. In the event Agency decides to purchase additional virtual reality headsets for use with Virtual Reality Media, Agency must purchase those headsets from Axon.

3. License Restrictions. All licenses will immediately terminate if Agency does not comply with any term of this Agreement. If Agency utilizes more users than stated in this Agreement, Agency must purchase additional Virtual Reality Media licenses from Axon. Agency may not use Virtual Reality Media for any purpose other than as expressly permitted by this Agreement. Agency may not:

3.1. modify, tamper with, repair, or otherwise create derivative works of Virtual Reality Media;

3.2. reverse engineer, disassemble, or decompile Virtual Reality Media or apply any process to derive the source code of Virtual Reality Media, or allow others to do the same;

3.3. copy Virtual Reality Media in whole or part, except as expressly permitted in this Agreement;

3.4. use trade secret information contained in Virtual Reality Media;

3.5. resell, rent, loan or sublicense Virtual Reality Media;

3.6. access Virtual Reality Media to build a competitive device or service or copy any features, functions, or graphics of Virtual Reality Media; or

3.7. remove, alter, or obscure any confidentiality or proprietary rights notices (including copyright and trademark notices) of Axon or Axon’s licensors on or within Virtual Reality Media or any copies of Virtual Reality Media.

4. Privacy. Agency’s use of the Virtual Reality Media is subject to the Axon Virtual Reality Privacy Policy, a current version of which is available at https://www.axon.com/legal/axon-virtual-reality-privacy-policy.

5. Termination. Axon may terminate Agency’s license immediately for Agency’s failure to comply with any of the terms in this Agreement.

538
Master Services and Purchasing Agreement for Agency
Title: Master Services and Purchasing Agreement between Axon and Agency Department: Legal
Version: 15.0
Release Date: 8/31/2022 Page 15 of 19
Axon Application Programming Interface Appendix
This Appendix applies if Axon’s API Services are included on the Quote.

1. Definitions.

1.1. “API Client” means the software that acts as the interface between Agency’s computer and the server, which is already developed or to be developed by Agency.

1.2. “API Interface” means software implemented by Agency to configure Agency’s independent API Client Software to operate in conjunction with the API Service for Agency’s authorized Use.

1.3. “Axon Evidence Partner API, API or AXON API” (collectively “API Service”) means Axon’s API which provides a programmatic means to access data in Agency’s Axon Evidence account or integrate Agency’s Axon Evidence account with other systems.

1.4. “Use” means any operation on Agency’s data enabled by the supported API functionality.

2. Purpose and License.

2.1. Agency may use API Service and data made available through API Service, in connection with an API Client developed by Agency. Axon may monitor Agency’s use of API Service to ensure quality, improve Axon devices and services, and verify compliance with this Agreement. Agency agrees to not interfere with such monitoring or obscure from Axon Agency’s use of API Service. Agency will not use API Service for commercial use.

2.2. Axon grants Agency a non-exclusive, non-transferable, non-sublicensable, worldwide, revocable right and license during the Term to use API Service, solely for Agency’s Use in connection with Agency’s API Client.

2.3. Axon reserves the right to set limitations on Agency’s use of the API Service, such as a quota on operations, to ensure stability and availability of Axon’s API. Axon will use reasonable efforts to accommodate use beyond the designated limits.

3. Configuration. Agency will work independently to configure Agency’s API Client with API Service for Agency’s applicable Use. Agency will be required to provide certain information (such as identification or contact details) as part of the registration. Registration information provided to Axon must be accurate. Agency will inform Axon promptly of any updates. Upon Agency’s registration, Axon will provide documentation outlining API Service information.

4. Agency Responsibilities. When using API Service, Agency and its end users may not:

4.1. use API Service in any way other than as expressly permitted under this Agreement;

4.2. use in any way that results in, or could result in, any security breach to Axon;

4.3. perform an action with the intent of introducing any viruses, worms, defect, Trojan horses, malware, or any items of a destructive nature to Axon Devices and Services;

4.4. interfere with, modify, disrupt or disable features or functionality of API Service or the servers or networks providing API Service;

4.5. reverse engineer, decompile, disassemble, or translate or attempt to extract the source code from API Service or any related software;

4.6. create an API Interface that functions substantially the same as API Service and offer it for use by third parties;

4.7. provide use of API Service on a service bureau, rental or managed services basis or permit other individuals or entities to create links to API Service;

4.8. frame or mirror API Service on any other server, or wireless or Internet-based device;

4.9. make available to a third-party, any token, key, password or other login credentials to API Service;

4.10. take any action or inaction resulting in illegal, unauthorized or improper purposes; or

4.11. disclose Axon’s API manual.

5. API Content. All content related to API Service, other than Agency Content or Agency’s API Client content, is considered Axon’s API Content, including:

5.1. the design, structure and naming of API Service fields in all responses and requests; 539
Master Services and Purchasing Agreement for Agency
Title: Master Services and Purchasing Agreement between Axon and Agency Department: Legal
Version: 15.0
Release Date: 8/31/2022 Page 16 of 19

5.2. the resources available within API Service for which Agency takes actions on, such as evidence, cases, users, or reports; and

5.3. the structure of and relationship of API Service resources; and

5.4. the design of API Service, in any part or as a whole.

5.5. Prohibitions on API Content. Neither Agency nor its end users will use API content returned from the API Interface to:

5.6. scrape, build databases, or otherwise create permanent copies of such content, or keep cached copies longer than permitted by the cache header;

5.7. copy, translate, modify, create a derivative work of, sell, lease, lend, convey, distribute, publicly display, or sublicense to any third-party;

5.8. misrepresent the source or ownership; or

5.9. remove, alter, or obscure any confidentiality or proprietary rights notices (including copyright and trademark notices).

6. API Updates. Axon may update or modify the API Service from time to time (“API Update”). Agency is required to implement and use the most current version of API Service and to make any applicable changes to Agency’s API Client required as a result of such API Update. API Updates may adversely affect how Agency’s API Client access or communicate with API Service or the API Interface. Each API Client must contain means for Agency to update API Client to the most current version of API Service. Axon will provide support for 1 year following the release of an API Update for all depreciated API Service versions.

540
Master Services and Purchasing Agreement for Agency
Title: Master Services and Purchasing Agreement between Axon and Agency Department: Legal
Version: 15.0
Release Date: 8/31/2022 Page 17 of 19
Axon Channel Services Appendix
This Appendix applies if Agency purchases Axon Channel Service, as set forth on the Quote.

1. Definitions.

1.1. “Axon Digital Evidence Management System” means Axon Evidence or Axon Commander, as specified in the attached Channel Services Statement of Work.

1.2. “Active Channel” means a third-party system that is continuously communicating with an Axon Digital Evidence Management System.

1.3. “Inactive Channel” means a third-party system that will have a one-time communication to an Axon Digital Evidence Management System.

2. Scope. Agency currently has a third-party system or data repository from which Agency desires to share data with Axon Digital Evidence Management. Axon will facilitate the transfer of Agency’s third-party data into an Axon Digital Evidence Management System or the transfer of Agency data out of an Axon Digital Evidence Management System as defined in the Channel Services Statement of Work (“Channel Services SOW”). Channel Services will not delete any Agency Content. Agency is responsible for verifying all necessary data is migrated correctly and retained per Agency policy.

3. Purpose and Use. Agency is responsible for verifying Agency has the right to share data from and provide access to third-party system as it relates to the Services described in this Appendix and the Channel Services SOW. For Active Channels, Agency is responsible for any changes to a third-party system that may affect the functionality of the channel service. Any additional work required for the continuation of the Service may require additional fees. An Axon Field Engineer may require access to Agency’s network and systems to perform the Services described in the Channel Services SOW. Agency is responsible for facilitating this access per all laws and policies applicable to Agency.

4. Project Management. Axon will assign a Project Manager to work closely with Agency’s project manager and project team members and will be responsible for completing the tasks required to meet all contract deliverables on time and budget.

5. Warranty. Axon warrants that it will perform the Channel Services in a good and workmanlike manner.

6. Monitoring. Axon may monitor Agency’s use of Channel Services to ensure quality, improve Axon devices and services, prepare invoices based on the total amount of data migrated, and verify compliance with this Agreement.

Agency agrees not to interfere with such monitoring or obscure from Axon Agency’s use of channel services.

7. Agency’s Responsibilities. Axon’s successful performance of the Channel Services requires Agency:

7.1. Make available its relevant systems for assessment by Axon (including making these systems available to Axon via remote access);

7.2. Provide access to the building facilities and where Axon is to perform the Channel Services, subject to safety and security restrictions imposed by the Agency (including providing security passes or other necessary documentation to Axon representatives performing the Channel Services permitting them to enter and exit Agency premises with laptop personal computers and any other materials needed to perform the Channel Services);

7.3. Provide all necessary infrastructure and software information (TCP/IP addresses, node names, and network configuration) for Axon to provide the Channel Services;

7.4. Ensure all appropriate data backups are performed;

7.5. Provide Axon with remote access to the Agency’s network and third-party systems when required for Axon to perform the Channel Services;

7.6. Notify Axon of any network or machine maintenance that may impact the performance of the Channel Services; and

7.7. Ensure the reasonable availability by phone or email of knowledgeable staff, personnel, system administrators, and operators to provide timely, accurate, complete, and up-to-date documentation and information to Axon (these contacts are to provide background information and clarification of information required to perform the Channel Services).
541
Master Services and Purchasing Agreement for Agency
Title: Master Services and Purchasing Agreement between Axon and Agency Department: Legal
Version: 15.0
Release Date: 8/31/2022 Page 18 of 19
Axon Investigate Appendix
If the Quote includes Axon's On Prem Video Suite known as Axon Investigate, the following appendix shall apply.

1. License Grant. Subject to the terms and conditions specified below and upon payment of the applicable fees set forth in the Quote, Axon grants to Agency a nonexclusive, nontransferable license to install, use, and display the Axon Investigate software ("Software") solely for its own internal use only and for no other purpose, for the duration of subscription term set forth in the Quote. This Agreement does not grant Agency any right to enhancements or updates, but if such are made available to Agency and obtained by Agency they shall become part of the Software and governed by the terms of this Agreement.

2. Third-Party Licenses. Axon licenses several third-party codecs and applications that are integrated into the Software. Users with an active support contract with Axon are granted access to these additional features. By accepting this agreement, Agency agrees to and understands that an active support contract is required for all of the following features: DNxHD output formats, decoding files via the “fast indexing” method, proprietary file metadata, telephone and email support, and all future updates to the software. If Agency terminates the annual support contract with Axon, the features listed above will be disabled within the Software. It is recommended that users remain on an active support contract to maintain the full functionality of the Software.

3. Restrictions on Use. Agency may not permit any other person to use the Software unless such use is in accordance with the terms of this Agreement. Agency may not modify, translate, reverse engineer, reverse compile, decompile, disassemble or create derivative works with respect to the Software, except to the extent applicable laws specifically prohibit such restrictions. Agency may not rent, lease, sublicense, grant a security interest in or otherwise transfer Agency’s rights to or to use the Software. Any rights not granted are reserved to Axon.

4. Term. For purchased perpetual Licenses only--excluding Licenses leased for a pre-determined period of time, evaluation licenses, companion licenses, as well as temporary licenses--the license shall be perpetual unless Agency fails to observe any of its terms, in which case it shall terminate immediately, and without additional prior notice. The terms of Paragraphs 1, 2, 3, 5, 6, 8 and9 shall survive termination of this Agreement. For licenses leased for a pre-determined period of time, for evaluation licenses, companion licenses, as well as temporary licenses, the license is granted for a period beginning at the installation date and for the duration of the evaluation period or temporary period as agreed between Axon and Agency.

5. Title. Axon and its licensors shall have sole and exclusive ownership of all right, title, and interest in and to the Software and all changes, modifications and enhancements thereof (including ownership of all trade secrets and copyrights pertaining thereto), regardless of the form or media in which the original or copies may exist, subject only to the rights and privileges expressly granted by Axon. This agreement does not provide Agency with title or ownership of the Software, but only a right of limited use.

6. Copies. The Software is copyrighted under the laws of the United States and international treaty provisions.

Agency may not copy the Software except for backup or archival purposes, and all such copies shall contain all Axon’s notices regarding proprietary rights as contained in the Software as originally provided to Agency. If Agency receives one copy electronically and another copy on media, the copy on media may be used only for archival purposes and this license does not authorize Agency to use the copy of media on an additional server.t

7. Actions Required Upon Termination. Upon termination of the license associated with this Agreement, Agency agrees to destroy all copies of the Software and other text and/or graphical documentation, whether in electronic or printed format, that describe the features, functions and operation of the Software that are provided by Axon to Agency ("Software Documentation"), or return such copies to Axon. Agency agrees that with respect to any copies that may exist with respect to media containing regular backups of Agency’s computer or computer system, that Agency shall not access such media for the purpose of recovering the Software or online Software Documentation.

8. Export Controls. None of the Software, Software Documentation or underlying information may be downloaded or otherwise exported, directly or indirectly, without the prior written consent, if required, by the office of Export Administration of the United States, Department of Commerce, nor to any country to which the U.S. has embargoed goods, to any person on the U.S. treasury Department’s list of Specially Designated Nations or the U.S. Department of Commerce’s Table of Denials.

9. U.S. Government Restricted Rights. The Software and Software Documentation are Commercial Computer Software 542
Master Services and Purchasing Agreement for Agency
Title: Master Services and Purchasing Agreement between Axon and Agency Department: Legal
Version: 15.0
Release Date: 8/31/2022 Page 19 of 19
provided with RESTRICTED RIGHTS under Federal Acquisition Regulations and agency supplements to them. Use, duplication or disclosure by the U.S. Government is subject to restrictions as set forth in subparagraph (c)(1)(ii) of the Rights in Technical Data and Computer Software clause at DFAR 255.227-7013 et. Seq. or 252.211-7015, or subparagraphs (a) through (d) of the Commercial Computer Software Restricted Rights at FAR 52.227-19, as applicable, or similar clauses in the NASA FAR Supplement. Contractor/manufacturer is Axon Enterprise, Inc., 17800 North 85th Street, Scottsdale, Arizona 85255.
543