Agenda packet — Visalia City Council, November 6, 2023 (part 3 of 3)

4. Service proposal - FM3

5. City Council staff report dated July 17, 2023
Visalia City Council Page 3 of 3 Printed on 11/3/2023
powered by Legistar™668
Proposal to Conduct Public Opinion Research
on a Potential 2024 Commercial Cannabis Tax
Ballot Measure
City of Visalia
August 10, 2023 921-6831
669
Page i
August 4, 2023
Dear Mr. Jones:

Fairbank, Maslin, Maullin, Metz & Associates (FM3 Research or FM3) is pleased to present this proposal to conduct public opinion research to assess City of Visalia voters’ awareness of State efforts to ensure the availability of medical cannabis delivery; gauge levels of support for the potential for retail cannabis dispensaries within Visalia city limits; interest in the establishment of regulations associated with retail recreational cannabis dispensaries and delivery; and levels of support for a potential 2024 ballot measure to establish a commercial cannabis business tax (perhaps in the form of a gross receipts tax) in the City of Visalia. We believe our firm is an excellent choice to provide these research services for several reasons detailed in our proposal, including:
• FM3 is a national leader in conducting research on cannabis issues, including local tax measures. We have worked in 30+ California communities to gauge resident and voter attitudes on local policies toward cannabis regulation and taxation. In some cases, communities we’ve worked with have opted to continue to restrict or limit access to cannabis (within the State’s legal framework), whereas other communities have opted to expand access to medical or a combination of medical and recreational cannabis. In the latter cases, our research has contributed to the passage of 28 local tax measures since 2010. We have also worked on cannabis issues at the statewide level in 15 states in every region throughout the country. • We have several decades of experience providing research for public agency clients throughout Tulare County. Our local clients include the cities of Visalia (between 2003 and 2015), Dinuba, Exeter, Lindsey, Porterville, and Tulare; the College of the Sequoias and State Center Community College Districts; and the Tulare County Association of Governments, among others. • Our approach is focused on providing the best possible ongoing strategic consultation to our clients. We do not simply conduct a poll, present the results, and leave you and your team to figure out how to put them to use. Instead, we want to be a member of your strategic team—participating fully in each of the campaign’s key decisions on an ongoing basis. Furthermore, our firm is large enough to turn projects around quickly, but not so large that you will not know whom to call with your questions, ideas, and concerns. • We have a strong commitment to personalized client service. As a medium-sized research firm, FM3 provides its clients with a level of personal attention and service from our senior staff that is more often associated with much smaller organizations, while concurrently offering the wide range of services, adherence to expedited timelines, and rigorous quality control expected from larger research firms.

FM3 has worked with a number of legal and municipal financial firms—including HdL—when conducting research on behalf of cities exploring cannabis-related regulations and proposed taxes. We are happy to work with any firms the City has selected, or we can ask some of our past partners to join the team. We are also prepared to prime the team, if that would help minimize bureaucratic red tape, given the time constraints.

We appreciate the opportunity to be considered for this project. If you have any questions about the contents of this proposal, please do not hesitate to reach out—contact information is available on page 10.

Dr. Richard Bernard, FM3 Partner
670
Page ii

CONTENTS
1 FM3 BACKGROUND ................................................................................................................................................1 2 RELEVANT EXPERIENCE.............................................................................................................................................2

2.1 Experience Conducting Research on Cannabis Issues................................................................................2

2.2 Experience in Tulare County.......................................................................................................................2 3 PROPOSED APPROACH AND ESTIMATED COSTS ............................................................................................................4

3.1 Research Specifications..............................................................................................................................4

3.2 Description of Methodology.......................................................................................................................4

3.3 Deliverables................................................................................................................................................6

3.4 Estimated Costs..........................................................................................................................................6 4 STAFF BIO .............................................................................................................................................................7 5 CANNABIS-RELATED CITY REFERENCES........................................................................................................................9 6 CONTACT INFORMATION ....................................................................................................................................... 10

LIST OF FIGURES
FIGURE 1: FM3 SUCCESSFUL LOCAL CANNABIS TAX MEASURES IN CALIFORNIA.........................................................................3 FIGURE 2: RESEARCH SPECS AT A GLANCE ...........................................................................................................................4 FIGURE 3: SURVEY RESEARCH PROCESS ..............................................................................................................................5 FIGURE 4: ESTIMATED SURVEY COSTS ................................................................................................................................6 671

Page 1 ends

1 FM3 BACKGROUND
Fairbank, Maslin, Maullin, Metz & Associates (FM3 Research or FM3) has been conducting public policy-oriented opinion research since 1981 on issues of major economic and social concern. As a California-based company, we are a medium-sized research firm with 22 full-time employees working out of our Los Angeles and Oakland offices.

The research FM3 conducts goes far beyond simply documenting the knowledge, views, and behaviors of various populations. Rather, our work produces actionable data that provides a strategic roadmap for policy makers and informs community outreach and communication efforts.

Each of the research projects we do is led by one of our six partners, all of whom are nationally respected authorities on public opinion research. As our client, you will have direct access to not only the partner working on your project, but also several other key staff members with advanced degrees in public policy, research methods, and/or extensive
experience working in state and local government.

While our firm is not so big that you will wonder whom to call with your questions, we are big enough to have our own inhouse data analysis/processing team and graphic design resources. This means we can provide our clients with a level of personal attention and service from firm partners and other senior staff more often associated with much smaller organizations, while also providing rapid project turnaround and more sophisticated data analysis and presentations
tailored to client needs that one might expect from larger firms.

FM3 utilizes a variety of research tools designed to address each client’s unique circumstances. Some of these tools are quantitative, such as surveys; some are qualitative, such as focus groups; and others fall somewhere in between. In any given year, FM3 conducts more than 300 surveys and 160 focus groups, in addition to providing ongoing consulting for key clients. We also actively monitor methodological developments through our industry’s trade association—the American Association for Public Opinion Research (AAPOR)—and continually experiment with newly evolving online and digital research approaches.

FM3 offers a hands-on approach in
which one of our partners leads the
research every step of the way.

Even once the research is complete, an
FM3 partner is only a phone call away,
happy to provide additional consultation at
no additional charge.
672

Page 2 ends

2 RELEVANT EXPERIENCE

2.1 Experience Conducting Research on Cannabis Issues
FM3 is a nationally recognized leader in conducting research to reform state and local laws regulating the production, sale, and adult use of cannabis products.

FM3 contributed to some of the earliest efforts in the nation to reform marijuana laws when our research contributed to the passage of California’s Proposition 215 in 1996—the first successful state-level medical marijuana legalization measure. Our research was a critical part of the campaign to ensure that early public support would not decline and threaten passage, as it frequently does in similar campaigns. The lessons from our work on Proposition 215 have informed much of our subsequent work in support of medical marijuana measures around the country.

Later, in 2016, our research on behalf of a coalition of local government organizations (led by the League of California Cities) helped shape what would ultimately become Proposition 64, the Adult Use Marijuana Act.

Working with city, county, and other local government agency leaders, FM3 conducted statewide survey research to identify voter attitudes and support for permitting California’s local governments to adopt local ordinances to regulate the cultivation, distribution, sale, and taxation of cannabis products. Ultimately Prop. 64 passed, legalizing marijuana use for adults.

Following the voter approval of Proposition 64, FM3 has provided research gauging resident and voter attitudes on local policies toward cannabis regulation and taxation for 30+ California communities. In some cases, the communities we have worked with have opted to continue to restrict or limit access to cannabis (within the State’s legal framework), whereas other committees have opted to expand access to medical or a combination of medical and recreational cannabis. In the latter cases, our research has contributed to the passage of 28 local tax measures since 2010. We have worked for city and county governments, as well as for private cannabis interests that are open to working in tandem with local governments to ensure fair and balanced revenue measures. See Figure 1 on the next page for a list of cannabis tax measures FM3 has passed in California jurisdictions.

Beyond California, we have extensive experience researching marijuana regulation throughout the United States.

FM3 has informed statewide campaigns to legalize marijuana for adults in Oregon, Montana, Arizona, Michigan, Maine, New York, New Jersey, and Massachusetts; and medical marijuana campaigns in North Dakota, South Dakota, Mississippi, Missouri, Utah, and Oklahoma. Our firm has also worked on two successful statewide efforts to create a therapeutic framework for the use of psychedelics, including psilocybin. Over the past six years, we have also researched shifts in public opinion about replacing the criminalization of drugs with a public-health approach.

2.2 Experience in Tulare County
FM3 has several decades of experience providing research for public agency clients throughout Tulare County. In fact, FM3 is very familiar with the City of Visalia, having conducted research on behalf of the City on four separate occasions between 2003 and 2015. Evidence of FM3’s ability to accurately measure the sentiments of your 673

Page 3 ends

residents was last demonstrated over the November 2016 election cycle, during which the outcome of your successful sales tax measure matched the anticipated results found within the margin of error of our 2015 survey.

Our other local clients include the cities of Dinuba, Tulare, Porterville, Exeter, and Lindsey; the College of the Sequoias and State Center Community College Districts; and the Tulare County Association of Governments, among others. Most recently, in 2022 our research assisted in the passage of a cannabis tax measure in the City of Tulare and a $95 million bond measure for the College of the Sequoias Community College District, Measure C.

Figure 1: FM3 Successful Local Cannabis Tax Measures in California City/County Measure Election
City of El Segundo Measure BT November 2022
City of Hermosa Beach Measure T November 2022
County of Los Angeles (Unincorporated) Measure C November 2022 City of Montclair Measure R November 2022
City of Tulare Measure Y November 2022
City of South Lake Tahoe Measure G November 2022
City of La Habra Measure W November 2020
City of Costa Mesa Measure Q November 2020
City of El Monte Measure PC March 2020
City of Daly City Measure UU November 2018
City of Hemet Measure Z November 2018
City of Pomona Measure PC November 2018
County of San Luis Obispo Measure F-18 November 2018
City of Santa Ana Measure Y November 2018
City of Santa Paula Measure N November 2018
City of West Hollywood Measure Y November 2018
City of Merced Measure Y June 2018
City of Culver City Measure A April 2018
City of Palm Springs Measure E November 2017
City of Seaside Measure L June 2017
City of Bellflower Measure B March 2017
City of Long Beach Measure MA November 2016
City of Long Beach Measure MM November 2016
County of Humboldt Measure S November 2016
County of Calaveras Measure C November 2016
City of Santa Ana Measure BB November 2014
City of Sacramento Measure C November 2010
City of San José Measure U November 2010
674

Page 4 ends

3 PROPOSED APPROACH AND ESTIMATED COSTS

3.1 Research Specifications
For this project, FM3 recommends conducting a 20-
minute, dual-mode (telephone and online) survey
among a randomized sample of 400-500 likely
November 2024 voters within the City of Visalia.

We recommend utilizing three different contact
methods (telephone calls, emails, and text messages)
to provide an array of ways for potential respondents
to participate in the survey. Providing multiple forms of contact also helps us engage historically disadvantaged communities that may not have adequate broadband
access and/or access to computers or smart phones.

Additionally, different demographic groups often have
varying communication preferences—some may be
more likely to answer a phone call than open an email
or text message, and vice versa.

3.2 Description of Methodology
The research process will begin with an initial kickoff meeting between FM3 and your project team. This
meeting will provide an opportunity for an extensive
review of relevant background information and
context, as well as a detailed discussion of your
objectives for the project.

In designing a survey questionnaire for the City, FM3
will draw from its knowledge of public opinion survey
methodology; our comprehensive review of the City’s
past survey research (including tracking past questions when appropriate); your current and future objectives
and needs; and our own vast library of research on
cannabis tax measures.

FM3’s research will test core concepts such as voters’ views on the legalization of cannabis for both medical and recreational purposes, delivery and retail dispensaries, and their associated regulations. Further, to assess attitudes toward a potential cannabis tax, FM3 will measure viability, optimal election timing, and voters’ sense of the City’s financial needs. We will proceed through several drafts of the questionnaire, incorporating feedback Methodology
Dual-mode survey using a
combination of telephone
and online interviews
Respondent
Contact
Method
Telephone calls, email
invitations, and text
invitations
Population &
Sample
400-500 likely November
2024 voters within the City
of Visalia
Margin of
Sampling
Error*
±4.9% for a sample of 400
±4.4% for a sample of 500
*At the 95% confidence
level (i.e., in 95 out of 100
cases)
Questionnaire 20 minutes
Languages English and Spanish
Figure 2: Research Specs at a Glance
675

Page 5 ends

from your team before each revision, to develop a research instrument that will successfully obtain all the desired information.

FM3 will then construct a sample by pulling a random list of voters from the voter file. Based upon the final sample specifications, FM3 will set a target number of interviews to be completed online. We will then send out email invitations to a subset of people in our sample with a valid email address. Within several days of the initial invitation distribution, we will examine the demographic and geographic characteristics of the online completes and then begin conducting telephone interviews to balance out the sample and target underrepresented subgroups. Additionally, we will send out a number of text invitations to help reach the overall target number of online completes and complement the other contact methods.

Once the survey is complete, FM3 will generate a detailed report of the survey results in a PowerPoint presentation, including demographic breakouts and summaries of key findings. These results are typically presented in draft format to the client team and then further refined based upon feedback from that group. A version of this presentation will also be developed in a format suitable for FM3 to present in a public forum.

Figure 3: Survey Research Process
676

Page 6 ends

3.3 Deliverables
Upon conclusion of the survey project, the City will have received from FM3 each of the documents listed below.

All documents can be provided in hard copy or electronic form (or both), depending on your preference. ✓ Final survey questionnaire
✓ PowerPoint presentation (including key findings, results, conclusions, and actionable recommendations) ✓ Presentations of results to staff, board members, or other stakeholders (in person if desired) Finally, after FM3’s final deliverables have been completed, we will remain available to answer follow-up questions and to present results to additional key stakeholders. We view the responses to the survey as an ongoing data resource; if needed, FM3 can conduct further analysis to provide answers to any follow-up questions that may arise.

3.4 Estimated Costs
Figure 4 contains the total estimated costs for this research. These prices are comprehensive and include all costs for questionnaire design,sample acquisition and preparation, translation, programming,survey invitations, survey hosting, bilingual interviewing, data entry and analysis, and reporting.

Figure 4: Estimated Survey Costs
Number of Interviews Cost
400 interviews $35,500
500 interviews $39,500
If the City wishes for Dr. Bernard to attend any in-person meetings, any associated travel will be billed at cost. 677

Page 7 ends

4 STAFF BIO
Dr. Richard Bernard, FM3 Partner
Dr. Richard Bernard is one of California’s foremost public opinion researchers on issues related to public agencies and their regulations, strategic planning, services, and funding. A significant portion of Richard’s work measures awareness and attitudes, including attitudinal change. To this end, his experience includes conducting research and providing strategic advice related to favorably shifting residents’ attitudes on potentially controversial issues, including the legalization of cannabis and the importance of stem cell research.

During his more than 20 years at FM3, Richard’s research has provided insight into how clients can best access awareness/knowledge of local government policies or established practices; educate voters on the merits of increasing their taxes; aide developers in convincing local residents of the community about the benefits of new or revitalized projects; shift public opinion and behavior on water conservation, residential energy efficiency upgrades, the recycling of plastics and used motor oil; and supported the use of public transit.

Since 2016, Richard has also conducted cannabis issue-related research on behalf of several California cities, including research to:
• Gauge residents’ awareness of state and local cannabis regulations/restrictions, including those surrounding the delivery of cannabis
• Determine residents’ support for legalizing medical/retail sales of recreational cannabis in their jurisdiction • Test both supportive and opposition messaging related to allowing legal cannabis endeavors, to better understand what motivates residents’ opinions
• Explore residents’ opinions on taxing cannabis to pay for city services Among his past clients for cannabis-related research are the cities of Bellflower, Costa Mesa, Hermosa Beach, Montclair, Palm Springs, Santa Paula, San Luis Obispo, Vista, West Hollywood, and Wildomar. He has also worked on behalf of cannabis retailers interested in ensuring legal and regulated cannabis businesses in the cities of Pasadena and Tulare. He is currently working with the cities of Galt and Calabasas to assesses their voters' views on the legalization of retail cannabis in their respective city limits, as well as voters’ openness to imposing a gross receipts tax on recreational cannabis. Richard gauges community reactions to the introduction of cannabis by conducting a balanced survey of opposing views, with no predetermined outcome. In each city, the findings will be an important data point in Council discussions as to whether or not to move forward with allowing the retail sale of recreational cannabis within their communities.

In Tulare County, Richard has conducted four surveys on behalf of the City of Visalia and presented on a number of occasions to the City’s citizens’ task forces as well as the City Council. His other Tulare County city clients have included the cities of Exeter, Lindsey, Porterville, and Tulare. 678

Page 8 ends

Additionally, Richard has conducted various statewide surveys and/or focus groups for various other issues over the years, including water bonds, public safety, Indian gaming, transit, eminent domain, recycling, composting, sports wagering, natural resources protection, and transit. Some of these projects have gone on to become statewide ballot measures, and in some cases, data were used to successfully negotiate legislation in the State Assembly and/or Senate.

Education: Richard earned an Honors B.A. at York University, an M.A. at McGill University, and a Ph.D. at UCLA in Sociology.

Lucia Del Puppo, FM3 Senior Vice President
Since joining FM3 in 2015, Lucia has provided research for public finance measures throughout California, working to provide funding for police, fire, parks, roads and transportation, and education. Her work has informed ballot measures in communities across the state. In 2022, she provided research for local advocates in the City of Tulare that contributed to the passage of a cannabis tax. She has also conducted research in the City of Galt, the City of Rancho Cordova, and Sonoma County on cannabis issues.

Lucia has provided research for a number of public health ballot measures, including California Prop 31 banning flavored tobacco statewide in November 2022, No on Proposition C (a measure sponsored by JUUL) in San Francisco, and Yes on San Francisco Proposition E, which banned flavored tobacco. She has also conducted research on support for flavored tobacco bans in Oregon, the City of Los Angeles and San Diego.

Lucia’s prior experience includes providing policy research for the San Francisco Human Services Agency and the San Francisco Planning Department, as well as working as a systems and management consultant for federal agencies at Accenture.

Education: Lucia received a Master of Public Policy (M.P.P) degree from the Goldman School of Public Policy at UC Berkeley and a Bachelor of Science degree in decision science from Carnegie Mellon University. 679

Page 9 ends

5 CANNABIS-RELATED CITY REFERENCES
Lorenzo Hines Jr., City Manager
City of Galt
(209) 366-7100
[email protected]
John Leonard, Community and Legislative Affairs Division Manager Los Angeles County, Supervisorial District 3
Former Community & Legislative Affairs Manager, City Manager’s Department City of West Hollywood
(905) 570-5328
[email protected]
Edward C. Starr, City Manager
City of Montclair
(909) 625–9405
[email protected]
Lori Ann Harrison, City Manager
City of Costa Mesa
(714) 754-5328
[email protected]
680

Page 10 ends

6 CONTACT INFORMATION
Thank you for taking the time to review our proposal. Please feel free to contact us with any questions you may have.

Dr. Richard Bernard
Partner
[email protected]
(310) 428-1809 (cell)
Fairbank, Maslin, Maullin, Metz & Associates
12100 Wilshire Blvd., Suite 350
Los Angeles, CA 90025
www.fm3research.com
681
City of
Visalia
Cannabis Management Services
August 11, 2023

SUBMITTED BY
HdL Companies
120 S. State College Blvd., Ste 200
Brea, CA 92821
hdlcompanies.com

CONTACT
Ajay Kolluri
T: 714.879.5000
E: [email protected]
682
1 Proposal for Cannabis Management Services
for the City of Visalia August 11, 2023

TABLE OF CONTENTS
I. COVER LETTER ....................................................................................................................................... 2 II. PROPOSED SCOPE OF SERVICES ............................................................................................................ 3 III. COST ....................................................................................................................................................... 5 IV. OPTIONAL SERVICES .............................................................................................................................. 6 V. EXPERIENCE AND RESOURCES ............................................................................................................... 7 VI. REFERENCES ......................................................................................................................................... 13

683
2 Proposal for Cannabis Management Services
for the City of Visalia August 11, 2023

I. COVER LETTER
August 11, 2023
Devon Jones
Economic Development Manager
City of Visalia
315 E. Acequia
Visalia, CA 93291
Re: Proposal for Cannabis Monitoring and Compliance Services Dear Mr. Jones,
Thank you for the opportunity to submit this proposal for cannabis management services for the City of Visalia. The enclosed scope of services provides a comprehensive program to assist the City with meetings and workshops, development of a draft cannabis tax ordinance and cannabis regulatory ordinance, and additional hours of general subject matter expertise to be used as needed by the City
HdL is recognized as the industry leader in the development, implementation and enforcement of cannabis management programs for local governments in California. We have partnered with over 175 California cities and counties on cannabis-related programs, including ordinance development and review, community outreach and education, merit-based application and permitting processes, cost recovery studies, compliance inspections, revenue audits, fiscal analyses and law enforcement training.

Our cannabis team has unmatched expertise, with more than 80 years’ combined experience in the development, implementation and enforcement of cannabis regulatory and tax programs.

Our team members have conducted over 11,000 cannabis compliance inspections and audits in California, Colorado and Nevada, and have reviewed, scored and processed over 1,700 cannabis business applications in the last six years in California. HdL Companies works for the benefit of public agencies and has no private-sector clients in the cannabis industry.

We look forward to the opportunity to partner with the City of Visalia in developing a strategy which meets your program needs. If you have any questions or require additional information, please feel free to contact me by email at [email protected] or Ajay Kolluri at [email protected] or by phone at 714.879.5000.

Sincerely,
Andy Nickerson
President, HdL Companies

684
3 Proposal for Cannabis Management Services
for the City of Visalia August 11, 2023
II. PROPOSED SCOPE OF SERVICES
The City of Visalia currently disallows any and all commercial cannabis business types. With the passage of SB 1186, the City is now concerned that it may no longer be able to prohibit the establishment of non-storefront (delivery) medicinal cannabis retailers within the City. To prepare for this, the City is seeking assistance from HdL to develop a commercial cannabis tax measure for the November 2024 ballot. The City is also requesting that HdL assist with the development of a cannabis regulatory ordinance and provide outreach and education through meetings and presentations, along with additional subject matter expertise.

This scope of services includes the following list of objectives:
 Attendance or presentations at meetings or workshops. This objective may be used for HdL to meet with City Council Members either individually or in pairs, to provide a presentation at a City Council meeting, to attend the first reading of the draft ordinance, or other purposes.  Development of a commercial cannabis tax measure, including drafting the ordinance, preparation of a ballot resolution, revenue estimates and assistance with the ballot statement. The ballot measure shall include maximum tax rates for all commercial cannabis business types, though the City may or may not decide to permit any or all of those activities.  Development of a draft regulatory ordinance that includes appropriate regulations for each cannabis business type.
 Additional hours of general subject matter expertise to be used as requested by the City.

Such uses may include the preparation of a memo discussing considerations for various processes for reviewing cannabis business applications.

Objective 1: Attendance, Support or Presentations at Meetings or Workshops HdL shall provide remote presentations at meetings or workshops to help inform discussion and development of a potential cannabis ordinance and associated regulatory program. It is anticipated that this objective may include meetings with Council Members, a public meeting of the City Council to provide policy direction, attendance at a Planning Commission hearing, and/or the first reading of the ordinance. These meetings are described below.  Meetings with members of the City Council individually or in pairs to discuss issues and to address potential questions or concerns from the community.  A presentation at a public meeting or workshop to provide an overview of what a regulated cannabis industry might look like for the City, including revenue projections.

This meeting would also provide an opportunity for the City Council to provide policy direction to staff for development of a regulatory ordinance.  Attendance and support at a Planning Commission hearing for consideration of the draft cannabis regulatory ordinance.
685
4 Proposal for Cannabis Management Services
for the City of Visalia August 11, 2023
 Attendance and support at the first reading of the cannabis regulatory ordinance before the City Council.

The use and scheduling of these meetings would be determined in consultation with City staff.

This objective assumes that all meeting attendance would be virtual. Physical attendance would incur an additional travel charge.

Objective 2: Develop Draft Cannabis Tax Ordinance
HdL shall develop a draft commercial cannabis tax ordinance to generate City revenues from licensed cannabis businesses. The ordinance will set maximum tax rates for each type of cannabis business permitted by the City and will allow the City Council to set the rates as desired up to the maximum rate. The ordinance shall also specify the schedule and procedures for remitting taxes and shall allow the City to conduct audits of cannabis businesses to ensure they are reporting and remitting the proper amounts.

HdL shall also provide the ballot resolution as necessary to place the tax measure on the ballot and shall provide revenue projections as required for the ballot statement. The ballot measure shall include maximum tax rates for all commercial cannabis business types, allowing the City to decide which commercial cannabis activities it wishes to allow.

Objective 3: Develop Draft Cannabis Regulatory Ordinance HdL shall develop a draft commercial cannabis regulatory ordinance that is consistent with State laws and reflects industry best practices. HdL will work with City staff to identify local concerns and priorities, including land use issues and sensitive uses, and to design appropriate regulatory processes and mitigations as necessary to protect the health, safety and welfare of the community.

The ordinance will allow the City to specify the number and types of businesses to be permitted, location requirements, site security measures, inspections and enforcement protocols, operational procedures, and other requirements specific to each allowable type of cannabis business. The ordinance would allow the City Council to establish application and renewal procedures by resolution.

Objective 4: Technical Assistance and Subject Matter Expertise HdL will provide up to 100 hours of general consulting to be utilized on an as-needed basis at the City’s request. Such assistance may include technical assistance, subject matter expertise, education, monitoring of changes to State laws and regulations, participation in conference calls, responding to staff inquires via phone and email, reviewing staff reports to the City Council, assisting with responses to inquiries from the public, or other issues yet to be determined as requested by the City.

686
5 Proposal for Cannabis Management Services
for the City of Visalia August 11, 2023
III. COST
This proposal does not include any additional services that are not specifically enumerated herein. Prices are valid for 90 days from the date of this proposal to allow time for consideration and negotiating a service agreement. Once under contract, prices shall be honored for the first full year, with successive years subject to an annual increase based upon the Consumer Price Index for the Los Angeles-Long Beach-Anaheim region.

Conflicts of Interest and Non-Disclosure
HdL Companies works for the benefit of public agencies and has no private-sector clients in the cannabis industry. All cannabis business information will be kept confidential by HdL and will not be shared internally beyond those HdL employees who are required to have access for purposes of conducting the work contemplated herein, or for administrative purposes as necessary.

Drafts and Final Work Products
All work products assume one initial draft for review and comment, one iterative draft to incorporate any desired changes, and one final draft for presentation or publication. Additional drafts requested by the client may result in additional charges at HdL’s hourly rate.

Scope of Service Objectives Estimated Cost
Objective 1: Attendance or Presentations at Meetings or Workshops Assumes remote meetings;
Billed hourly under Objective 4
Hourly Rate
Objective 2: Develop Draft Cannabis Tax Ordinance
Billed hourly under Objective 4
Hourly Rate
Objective 3: Develop Draft Cannabis Regulatory Ordinance Billed hourly under Objective 4
Hourly Rate
Objective 4: Technical Assistance and Subject Matter Expertise Assumes 100 hours at $300/hr
$30,000
Travel (if and as needed for on-site meeting attendance) Hourly Rate1 TOTAL NOT TO EXCEED $30,000
1 Or at a flat rate to be determined in consultation with the City 687
6 Proposal for Cannabis Management Services
for the City of Visalia August 11, 2023
IV. OPTIONAL SERVICES
Optional services are described here for information purposes, only. No additional services will be provided without the expressed mutual agreement of both parties.

Hourly Rates for HdL Staff
The prices in this proposal are based on the hourly rates for HdL staff as shown in the chart below. Any additional services requested by the client that are not specifically described in this proposal would be billed at the standard rate for the assigned staff person.

HdL Staff Person Title Hourly Rate
Ajay Kolluri Director $300
Matt Eaton Deputy Director of Compliance $300
Mark Lovelace Senior Policy Advisor $300
Elizabeth Eumurian Audit Manager $300
David Ross Senior Compliance Inspector $250
Michelle Shaw Compliance Inspector $235
Valerie Carter Senior Auditor $250
Tao Lu Auditor $235
Pamela Davis Auditor $235
Eric Magana Auditor $235
Tonson Chieng Audit Analyst $225
Dante Chegini Audit Analyst $225
Jennifer Erwin Audit Analyst $225
Kristi Lervold Administrative Assistant $200
All rates current as of the date of this proposal
688
7 Proposal for Cannabis Management Services
for the City of Visalia August 11, 2023
V. EXPERIENCE AND RESOURCES
Company Profile
Founded in 1983, HdL is a consortium of three companies established to maximize local government revenues by providing audit, compliance, economic development, consulting services and software products. Our audit and consulting services include sales, use and transaction taxes, property taxes, transient occupancy taxes, and a Cannabis Management Program. The firm also provides a variety of enterprise software processing tools for business licensing, code enforcement, animal control, building permits and tracking/billing of false alarms.

HdL’s systematic and coordinated approach to revenue management and economic data analysis is currently being utilized by over 600 agencies in six states. The firm currently serves 49 counties, 311 cities and 132 transactions tax districts in California.

HdL’s key staff has extensive experience serving local government and many have previously held positions in city management, finance, planning, economic development or revenue collection. HdL is a Corporate Partner of the League of California Cities and California State Association of Counties and works extensively with the County Auditor’s Association of California, California Society of Municipal Finance Officers (CSMFO) and California Municipal Revenue and Tax Association (CMRTA) on anticipation and planning of programs to strengthen local government revenues.

This close understanding of local government needs coupled with extensive databases and advanced methodology provides for the most relevant, productive and responsive revenue recovery; forecasting; and economic services available.

Our team of professionals has over 80 years of direct experience establishing and implementing cannabis regulatory and taxation programs, including establishing land-use regulations, permit processes, staffing plans, and cost recovery fees; structuring cannabis business tax fees; regulatory compliance; financial audits; and law enforcement training. Our team has conducted over 11,000 cannabis compliance inspections and investigations in California, Colorado and Nevada.

Key Personnel
Ajay Kolluri; Director of Cannabis Services
Ajay Kolluri is the Director of Cannabis Services for HdL. Ajay is responsible for overseeing the cannabis team and the daily operations of HdL’s Cannabis Division.

Ajay previously served as Manager for the Office of Cannabis Oversight (OCO) at City of Long Beach. Working within the City Manager’s Office, Ajay was responsible for the licensing, regulation and enforcement of all commercial cannabis activity in the City, encompassing one of the largest legal cannabis markets in the state. 689
8 Proposal for Cannabis Management Services
for the City of Visalia August 11, 2023
During his tenure with the OCO, Ajay oversaw the issuance over 200 cannabis business licenses, generating over $10 million in annual revenue for the City. Ajay has experience in all aspects of cannabis oversight, including public health and education, planning and zoning, building inspections, enforcement, fee development, economic analysis and revenue projections.

Prior to overseeing the OCO, Ajay worked in public finance, serving as Budget Analyst for the Department of Financial Management in the City of Long Beach. Ajay holds a Bachelor’s degree in business economics from the University of California, Santa Barbara, and a Master’s degree in public policy from the University of Michigan.

Matt Eaton; Deputy Compliance Director
Matt Eaton is the Deputy Compliance Director at HdL and plays a critical role in implementing the Cannabis Compliance Program for local agencies. Prior to joining the firm, he was a progressive law enforcement professional with 30 years’ experience conducting criminal/regulatory investigations, and corporate/individual background investigations.

While working as a Supervisory Investigator at the Colorado Department of Revenue in the Marijuana Enforcement Division (MED), Matt managed criminal investigators and civilian staff in the Denver Metro and Longmont field offices. During his six-year tenure at the MED, he conducted approximately 10,000 criminal investigations and compliance reviews, including regulatory and financial investigations. He is a subject matter expert on track and trace systems and understands the complexity of reviewing data to ensure businesses are in compliance with state and local regulations. Matt was responsible for planning, developing and implementing report and field inspection protocols for the agency. He also played an instrumental role in recommending changes to current regulations and identifying essential language for new legislation in Colorado. Matt is well known for his ability to maintain working relationships with cannabis industry leaders and external stakeholders in resolving issues.

Matt received his Bachelor of Science Degree from Biola University and maintained Police Officer Service Training (POST) certification for over 30 years in California and Colorado. He has also served as an adjunct instructor teaching law enforcement principle related to criminology, correctional processes, procedural law, interviews, interrogations and criminal evidence at AIMS Community College in Greeley, Colorado.

Mark Lovelace; Senior Policy Advisor
Mark Lovelace has 23 years of broad experience in public policy, community engagement and advocacy and is recognized as a leader in advancing the statewide discussion of medical and recreational cannabis as a legitimate policy issue in California. Mark served on the Humboldt County Board of Supervisors from 2009 through 2016 where he was instrumental in developing a comprehensive approach to regulating cannabis, including a voter-approved tax on commercial cultivation and an innovative track and trace pilot program. Mark established and co-chaired the Cannabis Working Group for the California State Association of Counties (CSAC) and helped draft CSAC’s cannabis legislative platform. 690
9 Proposal for Cannabis Management Services
for the City of Visalia August 11, 2023
Mark has worked extensively with public agencies and statewide organizations on cannabis issues and has led numerous presentations, workshops and panel discussions. Prior to his time on the Board, he worked for many years as a respected advocate on land use, planning, development, resource management and environmental issues. Mark received his Bachelor of Science degree in Industrial Design from San Jose State University.

David Ross; Senior Compliance Inspector
David Ross is a Certified Fraud Examiner with 7 years of experience conducting gaming and non-gaming audits and investigations of tribal gaming facilities. David’s experience includes conducting forensic accounting investigations into cash larceny, expense reimbursement fraud, check fraud, credit card fraud, payroll fraud, wire fraud, insider trading, construction fraud in addition to litigation support.

David previously worked as Surveillance Officer and Internal Auditor for the Shingle Springs Tribal Gaming Commission, where he was responsible for analyzing financial statements for a facility with revenues exceeding $20 million per month. David also analyzed internal controls and established policies and procedures to ensure compliance with federal, state and local regulations. In addition, David conducted surveillance reviews and investigations into criminal activity including check and credit card fraud, skimming, money laundering, drug activity and other violations.

David holds a Bachelor’s Degree in Business Administration from Vanguard University in Costa Mesa and a Master’s Degree in Finance from California State University San Bernardino. He is a member of the Association of Certified Fraud Examiners.

Michelle Shaw; Compliance Inspector
Michelle conducts onsite inspections, examinations and other actions to monitor compliance with established standards for local licensed cannabis businesses. Prior to joining HdL, she was a Compliance Specialist Officer at a large, multinational bank where she managed, validated and oversaw the effectiveness and accuracy of numerous compliance issues within the consumer retail space. Throughout her eight years of experience at the bank, she performed assessments of affiliate businesses to determine compliance/non-compliance of their processes and procedures pursuant to bank standards and state regulations.

A graduate of Cypress College, Michelle holds a Foundations of Banking Risk certificate from the Global Association of Risk Professionals and a paralegal certificate from the Southern California College of Business and Law.

Teresa Schneider; Compliance Inspector
Teresa Schneider served for 28 years with the Montclair Police Department, including 12 years in the Background Investigations Unit. In this capacity, Teresa was responsible for conducting background investigations of all City business license applicants, as well as all sworn and non-sworn positions within the police and fire departments and of civilians requesting access to police department records.
691
10 Proposal for Cannabis Management Services
for the City of Visalia August 11, 2023
Theresa previously served 4 years in the U.S. Army’s nursing program at Fort Campbell, Kentucky. During this time she attended college at the University of Kentucky and Austin Peay State University. After receiving an Honorable Discharge in 1990, Teresa was hired by the Montclair Police Department. During her 28-year career, she worked numerous assignments, including patrol, K9, detective bureau, court liaison, volunteer coordinator, and red-light automated enforcement. Teresa received many awards throughout her career, including Officer of the Year.

Elizabeth Eumurian; Audit Manager
Elizabeth Eumurian is the Audit Manager for HdL. Her primary role is to oversee and review the audits conducted by team members to assure accuracy and consistency. She also conducts financial audits, evaluates cannabis applications and conducts background checks.

As part of the audit program, she will be conducting and preparing analytical information through the CATS™ program to prepare Tax Analytical Remittance Reports (TARR) summaries to evaluate under reporting or anomalies in the remittance of tax payments to local jurisdictions.

Elizabeth previously worked as a senior auditor in the entertainment industry. In this role, she executed testing procedures for targeted audit programs, analyzed findings and prepared audit and compliance reports. She also has experience working for a large financial institution analyzing data for reporting anomalies and performing internal audits. Elizabeth has recently done work for Blythe, California City, Coachella, Cotati, Desert Hot Springs, Long Beach, Mammoth Lakes, Moreno Valley, Perris, San Bernardino, and Vallejo.

Elizabeth earned her Bachelor of Arts degree in History from California State University and holds a certificate in CannaBusiness from Oaksterdam University.

Valerie Carter; Senior Auditor
Valerie Carter works as an Auditor for HdL’s Cannabis Management Team. Valerie has over 5 years of public sector work experience focusing on public policy, auditing and revenue tax implementation. She was a Tax Auditor II for the City of Oakland’s Revenue Management Bureau and an Assistant Management Analyst for the City of Berkeley’s Transportation division. Valerie earned a Bachelor’s Degree in Business Administration from Cal Poly Pomona, with an emphasis on Finance, Real Estate, and Law.

Pam Davis; Auditor
Pam Davis conducts revenue audits of licensed cannabis businesses as a member of HdL’s Cannabis Management Team. Prior to joining HdL, Pam served as the Director for the Richland County (South Carolina) Business Service Center for over 15 years, where she was responsible for auditing businesses to ensure accurate reporting and remittance of a variety of local taxes. Pam also conducted research and rate impact analyses and developed policies, procedures and user manuals to ensure business and governmental compliance. 692
11 Proposal for Cannabis Management Services
for the City of Visalia August 11, 2023
Pam received a Master’s of Public Administration degree from the University of Georgia and a Bachelor’s Degree in Political Science from Clemson University. She also holds a certificate in CannaBusiness from Oaksterdam University as well as numerous other certifications, Tao Lu; Auditor
Tao Lu works as an Auditor for HdL’s Cannabis Management Team. Tao has two and a half years’ experience as an accountant with an emphasis in information technology and food manufacturing industries. He also has public audit work experience at RSM China. Tao was born and raised in China. He earned a Bachelor’s Degree in Accounting and Finance from Syracuse University in New York before relocating to Southern California with his family.

Eric Magana; Auditor
Eric Magana works as an Auditor for HdL’s Cannabis Management Team, conducting revenue audits of licensed cannabis businesses to ensure they are accurately reporting their revenues and remitting the proper amount of fees or taxes. Prior to joining HdL, Eric worked as a Loan Specialist for the U.S. Small Business Administration, where he processed over 5,000 business loans and grant applications. Eric holds a Bachelor’s Degree in Economics and Administrative Studies from University of California at Riverside.

Tonson Chieng; Audit Analyst
Tonson Chieng is an Auditor for HdL’s Cannabis Management Team, conducting revenue audits of licensed cannabis businesses to ensure they are accurately reporting their revenues and remitting the proper amount of fees or taxes. Tonson previously worked as an accountant for Release Point, a business services company in Claremont, California, where he was responsible for generating and reviewing financial reports for in depth analysis along with other accounting and bookkeeping functions. Tonson also brings experience as a staff accountant for the CPA firm of MMB & Co.

Tonson received a Bachelor of Science degree in Accounting from California Polytechnic State University at Pomona in 2020.

Jennifer Erwin; Audit Analyst
Jennifer Erwin is an Audit Analyst for HdL’s Cannabis Management Team. Jennifer conducts revenue audits of licensed cannabis businesses to ensure they are reporting and remitting the proper amount of cannabis tax revenue to their host jurisdiction. Jennifer previously served as Finance Director for the City of Perris, California and as Assistant Controller for the Morongo Band of Mission Indians. Jennifer brings extensive experience with complex financial analyses, fee studies, cost accounting procedures and collections.

Jennifer is a Certified Public Accountant (CPA #108992) and received her Bachelor of Science degree in Business Administration from the University of Phoenix. 693
12 Proposal for Cannabis Management Services
for the City of Visalia August 11, 2023
Dante Chegini; Audit Analyst
Dante Chegini conducts revenue audits as a member of HdL’s Cannabis Management Team to ensure that licensed cannabis businesses are reporting and remitting the proper amount of cannabis taxes to their host jurisdiction. Dante previously worked as a financial analyst at a public finance investment banking firm in Los Angeles, where he was lead analyst on over 30 deals with a total value exceeding $1 billion. Dante brings experience with organizing and analyzing large volumes of financial data to determine accurate revenues and debts.

Dante received a Bachelor of Science degree in Business Administration from the University of Southern California, Marshall School of Business in May of 2022 with a focus on financial and managerial accounting and business finance.

Kristi Lervold; Administrative Assistant
Kristi is the Administrative Assistant for HdL’s cannabis team. In this role she supports individual team members, coordinates internal processes, and assists with client requests, contracts, billing reconciliation and invoicing. Kristi’s 18-year career includes ten years as the administrative assistant to HdL’s CFO, handling various operational responsibilities and supporting financial functions, as well as experience in the occupational health industry, facilitating services for federal, state, and local government clients. Kristi holds a Bachelor’s of Science degree in Business Management with a minor in Business Administration. 694
13 Proposal for Cannabis Management Services
for the City of Visalia August 11, 2023
VI. REFERENCES
City of Modesto
Steve Mitchell
Acting Planning Manager
Phone: 209.577.5287
Email: [email protected]
City of Monterey
Hans Uslar
City Manager
Phone: 831.646.3760
Email: [email protected]
City of Claremeont
Alex Cousins
Management Analyst, Community Development
Phone: 909.399.5323
Email: [email protected]
County of San Diego
Brian Hagerty
Assistant Group Finance Director
Phone: 619.851.5409
Email: [email protected]
City of Maywood
Jennifer Vasquez
City Manager
Phone: 323.562.5721
Email: [email protected]
695
696
697
698
699
700
701
702
703
704
705
706
707
708
709
710
711
712
713
714
715
716
717
718
719
720
721
722
723
724
725
726

PROFESSIONAL SERVICES AGREEMENT
Professional Services for
Preparation of Cannabis Tax Measure: Public Opinion Research This Agreement, entered into this _____ day of ___________, 2023, by and between the City of Visalia, hereinafter referred to as the “CITY”, and FM3 Research hereinafter referred to as the “CONSULTANT”.

W I T N E S S E T H
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 Exhibit “A”, and hereinafter referred to as the “PROJECT”; and WHEREAS, the CONSULTANT represents it is licensed, qualified and willing to provide such services pursuant to terms and conditions of this Agreement.

NOW, THEREFORE, CITY and CONSULTANT agree as follows:

I. SERVICES TO BE PERFORMED BY THE CONSULTANT
A. Authorized Scope of Work: The CONSULTANT agrees to perform all work necessary to complete in a manner satisfactory to the CITY those tasks described in Exhibit “A”, for the cost identified in section 3.4 of Exhibit “A” - Project Fee.

B. Additional Services: Travel FM3 staff may be required to travel to Visalia for in-person meetings. Any associated travel expenses will be billed at cost. Such additional services shall not be performed by CONSULTANT without the written consent of CITY.

II. TIME OF PERFORMANCE
The CONSULTANT shall commence performance of this Agreement within ten (10) days of Consultant’s Notice to Proceed following City Council approval of this Agreement and shall complete the work within the timeframes outlined in Exhibit “A”, unless otherwise extended in writing by CITY, in its sole discretion.

If the CONSULTANT fails to complete the PROJECT within the time specified, plus any extensions of time which may be granted, the CITY shall determine the percent of each work item completed and shall pay the CONSULTANT on that basis.

CONSULTANT shall not be responsible for delays which are due to causes beyond the CONSULTANT’s reasonable control. In the case of any such delay, the time of completion shall be extended accordingly in a writing signed by both parties.

B. Payment of Compensation: The CONSULTANT shall be compensated no more than monthly upon completion of percentage of each noted phase. The CONSULTANT shall be paid no later than thirty 727
(30) days following submission of a written, verified billing to the CITY. Said billing shall include the percentage of each task completed to date and since the date of the preceding billing, if any.

IV. AUTHORIZED REPRESENTATIVE
A. CITY: The Project Manager 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. CONSULTANT: Richard Bernard shall represent and act as principle for CONSULTANT in all matters pertaining to the services to be rendered by it under this Agreement.

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

2. If the CONSULTANT 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 subconsultants, the CONSULTANT 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 CONSULTANT. 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 subconsultant, the CONSULTANT shall not be liable for failure to perform, unless the services to be furnished by the subconsultant were obtainable from other sources in sufficient time and within budgeted resources to permit the CONSULTANT to meet the required delivery schedule or other performance requirements.

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

4. Upon termination, with or without cause, CONSULTANT 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 CONSULTANT 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 CONSULTANT was not in default under the provisions of this article, 728
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 pre-termination activities.

VI. INTEREST OF OFFICIALS AND THE CONSULTANT
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 personal interest or the interest of any corporation, partnership, or association in which he has, directly or indirectly, any interest; or

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

B. The CONSULTANT hereby covenants that he has, at the time of the execution of this Agreement, no interest, and that he shall not acquire any interest in the future, direct or indirect, which would conflict in any manner or degree with the performance of services required to be performed pursuant to this Agreement. The CONSULTANT further covenants that in the performance of this work, no person having any such interest shall be employed.

VII. NO PERSONNEL, AGENCY OR COMMISSION
The CONSULTANT 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 CONSULTANT 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.

VIII. SUBCONTRACTING
A. The CONSULTANT 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.

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

IX. INDEPENDENT CONTRACTOR
In the performance of the services herein provided for, the CONSULTANT shall be, and is, an independent contractor and is not an agent or employee of the CITY. The CONSULTANT has and shall retain the right to exercise full control and supervision of all persons assisting the CONSULTANT in the performance of said services hereunder. The CONSULTANT 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.

X. 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.

XI. 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 729
covered by this Agreement. Any additional copies, not otherwise provided for herein, shall be the responsibility of the CITY.

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

B. Publication: No report, information, or other data given or prepared or assembled by the CONSULTANT pursuant to this Agreement, shall be made available to any individual or organization by the CONSULTANT without the prior written approval of the CITY. Notwithstanding the foregoing, however, the CONSULTANT 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 CONSULTANT 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.

XII. INDEMNIFICATION AND INSURANCE
A. As respects acts, errors, or omissions in the performance of services, CONSULTANT 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 CONSULTANT’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 CONSULTANT, 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, CONSULTANT 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 CONSULTANT’s (or CONSULTANT’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 CONSULTANT 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. Commercial General Liability insurance with a combined single limit of not less than One Million Dollars ($1,000,000) per occurrence. Such insurance shall include coverage for Premises and Operations, Contractual Liability, Personal Injury Liability, Products and 730
Completed Operations Liability, Broad Form Property Damage (if applicable), Independent Contractor’s Liability (if applicable).

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.

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

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 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.”
In addition, the commercial general liability and comprehensive automobile liability policies required by this Agreement shall contain the following clauses:
“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.” “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.” G. Prior to commencing any work under this Agreement, CONSULTANT 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, CONSULTANT shall provide to CITY endorsements to the above-required 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 CONSULTANT’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 CONSULTANT 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 CONSULTANT to stop work under this Agreement and/or withhold any payment(s) which become due to CONSULTANT hereunder until CONSULTANT 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 CONSULTANT’s failure to maintain insurance or secure appropriate endorsements. 731
Nothing herein contained shall be construed as limiting in any way the extent to which CONSULTANT may be held responsible for payments of damages to persons or property resulting from CONSULTANT’s or its subcontractor’s performance of the work covered under this Agreement.

XIII. NON-DISCRIMINATION
CONSULTANT 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 CONSULTANT 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.

XIV. 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 CONSULTANT 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.

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

CITY OF VISALIA
707 W. Acequia Ave.

Visalia, CA 93291
Attention: City Clerk

CONSULTANT
_____________________
_____________________
_____________________
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 CONSULTANT 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 CONSULTANT 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 CONSULTANT.

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.

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. 732
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.

L. Firearms Prohibited: Guns may not be carried by contractors/vendors/consultants while working on City of Visalia premises without the expressed written approval of a City of 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.

M. 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.
733
IN WITNESS WHEREOF, this Agreement is executed on the day and year first above written.

CITY OF VISALIA CONSULTANT
___________________________ __________________________________ City Manager
Approved as to Form
__________________________________
City Attorney
__________________________________
Risk Manager
__________________________________
Project Manager
Attachments:

Exhibit “A”: Scope of Work, Project Fees
734

PROFESSIONAL SERVICES AGREEMENT
Professional Services for
Preparation of Cannabis Tax Measure
This Agreement, entered into this _____ day of ___________, 2023, by and between the City of Visalia, hereinafter referred to as the “CITY”, and HdL Companies hereinafter referred to as the “CONSULTANT”.

NOW, THEREFORE, CITY and CONSULTANT agree as follows:

B. Additional Services: Incidental work related to the PROJECT and not provided for in Exhibit “A” may be needed during the performance of this Agreement. The CONSULTANT agrees to provide any and all additional services at the rates identified in attached Exhibit “A” – section IV – Schedule of Fees for Professional Services. Such additional services shall not be performed by CONSULTANT without the written consent of CITY.

III. COMPENSATION
A. Total Compensation: For services performed pursuant to this Agreement, the CITY agrees to pay and the CONSULTANT agrees to accept, as payment in full, a sum not to exceed $35,000 (thirtyfive-thousand dollars). This amount shall constitute complete compensation, including document production and out-of-pocket expenses for all services for the work and PROJECT identified in Exhibit “A”.
735
B. Payment of Compensation: The CONSULTANT shall be compensated no more than monthly upon completion of percentage of each noted phase. The CONSULTANT shall be paid no later than thirty (30) days following submission of a written, verified billing to the CITY. Said billing shall include the percentage of each task completed to date and since the date of the preceding billing, if any.

B. CONSULTANT: Ajay Kolluri shall represent and act as principle for CONSULTANT in all matters pertaining to the services to be rendered by it under this Agreement.

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

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.

5. If, after notice of termination of this Agreement, as provided for in this article, it is determined for any reason that the CONSULTANT 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.

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

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

VIII. SUBCONTRACTING
A. The CONSULTANT 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.

XI. DOCUMENTS/DATA
737
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.

1. Workers’ Compensation insurance as required by California statues. 738

2. Commercial General Liability insurance with a combined single limit of not less than One Million Dollars ($1,000,000) per occurrence. Such insurance shall include coverage for Premises and Operations, Contractual Liability, Personal Injury Liability, Products and Completed Operations Liability, Broad Form Property Damage (if applicable), Independent Contractor’s Liability (if applicable).

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

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.

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

3. Terminate this Agreement.
739
Exercise of any of the above remedies, however, is an alternative to other remedies CITY may have and is not the exclusive remedy for CONSULTANT’s failure to maintain insurance or secure appropriate endorsements.

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

XIV. 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 CONSULTANT 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.

CITY OF VISALIA
707 W. Acequia Ave.

Visalia, CA 93291
Attention: City Clerk

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. 740
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.

M. 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.
741
IN WITNESS WHEREOF, this Agreement is executed on the day and year first above written.

Exhibit “A”: Scope of Work, Project Fees, Schedule of Fees for Professional Services 742
Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 23-0419 Agenda Date: 11/6/2023 Agenda #: 16.

Agenda Item Wording:

Authorize City Manager to award RFQ 22-23-66 and establish a qualified bidders list to perform various maintenance activities in the sanitary and storm sewer systems, including rehabilitation of lift stations, wells & pumps, and repair sanitary and storm sewer mains. Work completed under this contract will be funded through the operating and CIP budgets of the Wastewater and Storm Sewer funds at an amount not to exceed $1,500,000 annually. This is a one (1) year contract and is renewable for up to four (4) additional one year periods.

Deadline for Action: 11/6/2023
Submitting Department: Public Works
Contact Name and Phone Number:

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

Staff recommends that Council authorize the City Manager to establish a qualified bidders list for the repair and rehabilitation of the City’s sanitary and storm sewer systems consisting of the following contractors:

West Valley Construction Company, Inc. San Jose, CA
S W Construction, Inc. Bakersfield, CA
RT Nelson Company, Inc Visalia, CA
GSE Construction Company, Inc. Livermore, CA
Staff recommends that Council authorize the City Manager to award of an annual contract to each of the four (4) qualified bidders, West Valley Construction, S W Construction, RT Nelson, and GSE Construction, in a combined amount not to exceed $1,500,000 annually with up to four (4) additional one year periods.

Background Discussion:

Repair and rehabilitation of the City’s sanitary sewer and storm sewer systems is primarily outsourced to private contractors. In the vast majority of cases, the work is reactive in nature and in most cases cannot be determined in advance. Work is performed on an “as needed” basis and is scheduled after a system deficiency or failure is discovered. The scope of work for each project is initially determined based on the best information available, but the true scope is likely to expand or contract once the problem is excavated and exposed.

Ideally, as individual projects are identified, standard City purchasing procedures would be followed Visalia City Council Page 1 of 3 Printed on 11/3/2023
powered by Legistar™743
File #: 23-0419 Agenda Date: 11/6/2023 Agenda #: 16.

Ideally, as individual projects are identified, standard City purchasing procedures would be followed in selecting a contractor to complete the work. Depending on the estimated cost, this could include a formal bidding process, evaluation of bids, award by Council, and processing of contracts. In the best case scenario, this is a two month process for even modestly sized projects. Unfortunately, repair work on a broken sewer system cannot sit idle while a multiple month purchasing process unfolds.

In 2018, Council approved a hybrid approach to this issue, whereas a Request for Qualifications (RFQ) was issued, and respondents were evaluated to determine whether they met the minimum qualifications necessary to perform the typical scope of work anticipated. Based on that evaluation a list of “eligible bidders” was established, and individual contracts were awarded. As individual projects arise, a scope of work is developed, all contractors on the list are notified of the scheduled “job walk”, and a reasonable bid submission deadline is established. Once the bids are evaluated, the lowest responsive bidder is awarded the project, a Purchase Order is issued, and work can commence shortly thereafter. Because of the upfront work of establishing the eligible bidders list, the process unfolds very quickly once a project is identified.

All the eligible bidders were awarded five (5) year contracts, and those contracts expired in July 2023. In September 2023, RFQ 22-23-66 was issued for the Rehabilitation of Lift Stations, Well & Pumps, and the Repair of Sanitary Sewer and Storm Sewer Mains. Respondent’s qualifications were evaluated, and the following responses were determined to meet the minimum qualifications:

West Valley Construction Company, Inc. San Jose, CA
S W Construction, Inc. Bakersfield, CA
RT Nelson Company, Inc Visalia, CA
GSE Construction Company, Inc. Livermore, CA
Staff believes this approach has proven very successful and recommends that Council authorize the City Manager to award a contract to each of the contractors listed. Contractors will be required to submit all necessary insurance and other documentation to the City prior to being placed on the bidders list. The City has made clear that inclusion on the eligible bidders list does not guarantee that a contractor will be selected to perform work for any project as each project will be awarded separately to the lowest responsive bidder.

Fiscal Impact:

Work to be performed under this contract is funded through the Wastewater Enterprise Fund (431) and the Storm Water Maintenance Fund (481) Capital Improvement Projects (CIP), CP9456 Replace and Relocate Sanitary Sewer Mains and CP0589 Storm Drainage Replacement, respectively.

Prior Council Action:
5/7/2018
Authorization to award RFQ 17-18-11 and establish a qualified bidders list.

Alternatives:

Reject proposal approach and follow City’s standard bidding process each time a project is identified.

Visalia City Council Page 2 of 3 Printed on 11/3/2023
powered by Legistar™744
File #: 23-0419 Agenda Date: 11/6/2023 Agenda #: 16.

Recommended Motion (and Alternative Motions if expected):

I move to authorize the City Manager to award RFQ 22-23-66 and establish an eligible bidders list, and further authorize the City Manager to award an annual contract to each of the qualified bidders, West Valley Construction, S W Construction, RT Nelson, and GSE Construction, in a combined amount not to exceed $1,500,000 with up to four (4) one year extensions.

Attachments:
none
Visalia City Council Page 3 of 3 Printed on 11/3/2023
powered by Legistar™745
Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 23-0420 Agenda Date: 11/6/2023 Agenda #: 17.

Agenda Item Wording:

Request authorization to file a Notice of Completion for Sequoia Bend Unit 1 subdivision containing 51 single-family residential lots, located on the south side of East Goshen Avenue between North Cain and North Virmargo Streets.

Deadline for Action: 11/6/2023
Submitting Department: Community Development
Contact Name and Phone Number:

Luqman Ragabi, Assistant Engineer, [email protected] <mailto:[email protected]> , (599) 713-4362
Jason Huckleberry, Assistant Community 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 City Council authorize the filing of a Notice of Completion for Sequoia Bend Unit 1 subdivision.

Summary:

All of the required improvements for this subdivision have been completed and are ready for acceptance by the City Engineer. Sequoia Bend Unit 1 subdivision was developed by San Joaquin Valley Homes and contains 51 single family residential lots.

The developer has submitted a maintenance bond in the amount of $320,646.69 as required by the Subdivision Map Act, to guarantee the improvements against defects for one year. Staff recommends that authorization be given to file the Notice of Completion.

Background Discussion:

The City Council authorized the recording of the final map for Sequoia Bend Unit 1 subdivision on November 21, 2022. All bonds and cash payments, as identified in the subdivision agreement, were received by the City at that time. As required by the subdivision ordinance, a maintenance bond valued at 10% of the cost of the public improvements has been submitted prior to recording of the Notice of Completion. The Maintenance Bond is held for one year after the recording and acts as a warranty for the public improvements installed per the subdivision agreement.

Fiscal Impact:

By authorizing this Notice of Completion, the City of Visalia will incorporate the identified public improvements into normal routine maintenance plans and procedures following the one-year maintenance period. This will have a nominal adverse effect on the fund that provides such Visalia City Council Page 1 of 2 Printed on 11/3/2023
powered by Legistar™746
File #: 23-0420 Agenda Date: 11/6/2023 Agenda #: 17.
maintenance period. This will have a nominal adverse effect on the fund that provides such maintenance.

Prior Council Action:

On November 21, 2022, the City Council authorized the recordation of the final map for Sequoia Bend Unit 1 subdivision.

Other:
· On December 13, 2021, the Planning Commission approved Sequoia Bend Tentative Subdivision Map No. 5584.
· On October 28, 2022, Landscape & Lighting District No. 22-06 was reviewed and approved as to form by the Landscape and Lighting Committee.

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

I move to authorize the filing of Notice of Completion for Sequoia Bend Unit 1 subdivision.

Environmental Assessment Status:

Negative Declaration No. 2021-41, was adopted on December 13, 2021, for the subdivision.

CEQA Review: Initial Study / Negative Declaration No. 2021-41.

Attachments:

1. Aerial Map

2. Final Map

3. Development Disclosure - Notice of Completion
Visalia City Council Page 2 of 2 Printed on 11/3/2023
powered by Legistar™747
Aerial Map
E Main St
N
C
a
ni St E Goshen Ave
S
C
ain
St
S
D
u
n
w
orth
St
E Finni Ct
E Janelli Ct

SEQUOIA BEND
0 180 360 540 720 90
Feet
Legend
City Limits
Streets

PARCELS
Subject Property
748
749
750
751
Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 23-0421 Agenda Date: 11/6/2023 Agenda #: 18.

Agenda Item Wording:

Authorize the City Manager to extend the emergency contract for Engineering Plan Review and Related Services to Interwest Consulting Group, not to exceed $200,000 for one year ending December 31, 2024.

Deadline for Action: 11/6/2023
Submitting Department: Community Development
Contact Name and Phone Number:

Jason Huckleberry, CD Asst. 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 Council authorize the City Manager to extend the emergency contract for Engineering Plan Review and Related Services to Interwest Consulting Group for one year (ending December 31, 2024) to the City with professional Land Surveyor related map and document review and approvals due to the continued vacancy of the City’s Land Surveyor position at a maximum cost not-to-exceed of $200,000.

Background Discussion:

The emergency contract with Interwest was initially executed in October 2020 to provide plan review support to Community Development staff to meet objective plan review timelines related to new project submittals. City staff has been successfully meeting those timelines for nearly two years now and has not relied upon the Interwest contract for plan review service. However, in April of 2022 the City’s Land Surveyor accepted a position with another agency, and the City has not been successful in backfilling that position since their departure. The Community Development Department has relied heavily upon the emergency contract to provide both the Engineering and Planning Divisions with a contracted licensed land surveyor to review and sign on subdivision final maps, parcel maps, as well as provide technical review of easements, grant deeds, and lot line adjustments submitted to the City’s Community Development Department. These services are critical to the department and a required component of the work we perform.

The Community Development Department is seeking to extend the emergency contract with Interwest Consulting Group for one year to provide time for a formal Request for Proposals (RFP) for Land Surveyor services to be advertised, submittals to be reviewed, and a contract executed in 2024.

An RFP has been drafted and submitted to the City’s Purchasing Division for advertisement which will be released later this year. The current Interwest contract will expire on December 31, 2023. If approved, this extension will extend the contract to December 31, 2024, which provides ample time for staff to complete the RFP process for Land Surveyor services.

Visalia City Council Page 1 of 3 Printed on 11/3/2023
powered by Legistar™752
File #: 23-0421 Agenda Date: 11/6/2023 Agenda #: 18.

Fiscal Impact:

The City will not increase or modify our development fee schedule for the services provided by Interwest Consulting Group. The City’s current fee collection structure was established as nonrecuperative for services rendered and does not fully offset the cost associated with staff review time spent on development projects and is therefore subsidized by the general fund. The City is required to provide the service as noted in the report and the cost for the emergency contract services will not be passed onto to the public.

While it is difficult to anticipate the actual amount that may be expended since it is unknown how many projects may be submitted for review, staff has reviewed work performed in previous contract years and believes that $200,000 is an appropriate amount for the annual contract. If the Land Surveyor position is filled, this contract will no longer be necessary. Additionally, once the formal request for proposals has been awarded in 2024 and firms are under contract, this contract will be terminated.

Prior Council Action:
· On October 19, 2020, the City Council authorized the City Manager to execute a one-year emergency contract with the Interwest Consulting Group for Engineering Plan Review and Related Services.
· On December 20, 2021, the City Council authorized the City Manager to extend the emergency contract for Engineering Plan Review and Related Services to June 30, 2022. · On June 20, 2022, the City Council authorized the City Manager to extend the emergency contract for Engineering Plan Review and Related Services to June 30, 2023.

Other:

The contract extension by Council on June 6, 2022 was further extended through memorandum in June 2023 for an additional six months without any additional appropriation of funds. This extension by memorandum resulted in a contract expiration of December 31, 2023.

Alternatives:

The City Council can choose to not approve the request to extend the emergency contract for one year.

Recommended Motion (and Alternative Motions if expected):

I move to approve the authorization of the City Manager to extend the emergency contract for Engineering Plan Review Services to Interwest Consulting Group for one year, ending December 31, 2024 at a cost not-to-exceed amount of $200,000.

Environmental Assessment Status: N/A
CEQA Review: None required.

Attachments:

1. Copy of previously signed Professional Service Agreement for Engineering Plan Review and Visalia City Council Page 2 of 3 Printed on 11/3/2023
powered by Legistar™753
File #: 23-0421 Agenda Date: 11/6/2023 Agenda #: 18.

Related Services

2. Billing Rates provided by Interwest Consulting Group Visalia City Council Page 3 of 3 Printed on 11/3/2023
powered by Legistar™754
755
756
757
758
759
760
761
762
763
B i l l i n g R a t e s
Effective July 17, 2023
Beginning on the 1st anniversary of the Effective Date of the Agreement and annually thereafter, the hourly rates listed below shall be automatically increased based upon the annual increase in the Department of Labor, Bureau of Labor Statistics or successor thereof, Consumer Price Index (United States City Average, All Items (CPI-U), Not Seasonally adjusted, All Urban Consumers, referred to herein as the “CPI”). Such incr ease shall not exceed 4% per annum. The increase will become effective upon publication of the applicable CPI data. If the index decreases, the rates listed shall remain unchanged.

Classification Hourly Billing Rate
Engineering
Principal in Charge .................................................................................................................................. $245 Principal Engineer..................................................................................................................................... 220 City Surveyor............................................................................................................................................. 215 City Engineer............................................................................................................................................. 215 Project Manager ....................................................................................................................................... 200 Traffic Engineer......................................................................................................................................... 195 Transportation Engineer........................................................................................................................... 200 Supervising Engineer................................................................................................................................. 195 Senior Engineer......................................................................................................................................... 190 Licensed Land Surveyor ............................................................................................................................ 185 Engineering Associate III........................................................................................................................... 155 Engineering Associate II............................................................................................................................ 145 Engineering Associate I............................................................................................................................. 135 Survey Technician ..................................................................................................................................... 125 Senior Engineering Technician.................................................................................................................. 125 Engineering Technician III......................................................................................................................... 125 Engineering Technician II.......................................................................................................................... 110 Engineering Technician I........................................................................................................................... 100 Student Trainee .......................................................................................................................................... 50 Grading Plans Examiner............................................................................................................................ 160 Building Safety Services
Certified Building Official .......................................................................................................................... 160 Licensed Plan Review Engineer (structural, civil, electrical, mechanical) / Architect............................... 155 Supervising Structural Engineer................................................................................................................ 185 Senior Structural Engineer........................................................................................................................ 175 Senior Plans Examiner............................................................................................................................... 140 CASp .......................................................................................................................................................... 125 Inspector III ............................................................................................................................................... 110 Inspector II ................................................................................................................................................ 100 Inspector I ................................................................................................................................................... 90 Permit Technician ....................................................................................................................................... 80 Fire Protection Engineer........................................................................................................................... 155 Senior Fire Plans Examiner........................................................................................................................ 130 Fire Plans Examiner / Fire Inspector......................................................................................................... 120 ICC Building Plans Examiner ………………………………………………………….…………………………………………….…….120 764
Senior Code Enforcement Officer............................................................................................................. 135 Code Enforcement Officer ........................................................................................................................ 125 Trainee ....................................................................................................................................................... 75 Construction Management
Construction Manager ............................................................................................................................. 175 Assistant Construction Manager .............................................................................................................. 155 Supervising Public Works Observer.......................................................................................................... 170 Senior Public Works Observer .................................................................................................................. 165 Public Works Observer III.......................................................................................................................... 155 Public Works Observer II........................................................................................................................... 140 Public Works Observer I............................................................................................................................ 125 Real Estate
Supervising Corporate Broker................................................................................................................... 250 Senior Project Manager ............................................................................................................................ 195 Project Manager ....................................................................................................................................... 175 Senior Acquisition / Relocation Agent...................................................................................................... 135 Acquisition / Relocation Agent ................................................................................................................. 120 ROW Technician........................................................................................................................................ 110 ROW Coordinator........................................................................................................................................ 95 Administrative Support............................................................................................................................... 80 Landscape Design Review Services
Project Manager ....................................................................................................................................... 175 Senior Landscape Design Reviewer .......................................................................................................... 160 Landscape Design Reviewer...................................................................................................................... 145 Landscape Maintenance Inspector........................................................................................................... 125 Landscape Field Supervisor....................................................................................................................... 125 Planning Services
Community Development Director ......................................................................................................... 215 Planning Manager ................................................................................................................................... 190 Principal Planner...................................................................................................................................... 175 Senior Planner.......................................................................................................................................... 160 Associate Planner............ ........................................................................................................................ 130 Assistant Planner....................................................................................................................................... 105 Planning Technician .................................................................................................................................... 85 Administrative
Grant Manager.......................................................................................................................................... 160 Grant Writer.............................................................................................................................................. 150 Management Analyst II............................................................................................................................. 120 Management Analyst I.............................................................................................................................. 110 Senior Administrative ............................................................................................................................... 100 Administrative III......................................................................................................................................... 95 Administrative II.......................................................................................................................................... 90 Administrative I........................................................................................................................................... 75 765
Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 23-0425 Agenda Date: 11/6/2023 Agenda #: 19.

Agenda Item Wording:

Approve the Citizens Advisory Committee’s recommendation to appoint William Mann and Julie Appelbaum to fill a vacant voting position on the Citizens Advisory Committee vacated by Kelli Pierce and Charles Garza.

Deadline for Action: 11/6/2023
Submitting Department: Police Department
Contact Name and Phone Number:

Captain Luma Fahoum, ext. 4103, [email protected] <mailto:[email protected]>; Jason Serpa, 4533, [email protected] <mailto:[email protected]>; Public Works Manager
Department Recommendation:

Approve the Citizens Advisory Committee’s recommendation to appoint William Mann and Julie Appelbaum as voting members of the Citizens Advisory Committee. William Mann will be appointed to serve the remainder of the vacancy set to expire in June, 2024. Julie Appelbaum will be appointed to the unexpired term set to expire in June, 2025. Because both will serve less than half a full term during their first terms, they would be eligible to serve the partial term plus up to three full terms, should the Council choose to appoint them to additional terms.

Summary:

The Citizens Advisory Committee (CAC) consists of eleven (11) members. There are currently four (4) vacancies on the committee. If these appointments are approved by Council, William Mann and Julie Appelbaum will fill vacancies for the term that will expire in June 2024 and 2025 respectively, at which time they will be eligible to be reappointed to their first full term. If appointed, Julie Appelbaum and William Mann would fill terms vacated by Kellie Pierce and Charles Garza.

Background Discussion:

The CAC meets monthly for a variety of purposes including:
· Annually review the City’s use of the Measure T Public Safety Sales Tax commenting on the City Manager’s certified budget and the outside auditor’s review of monies spent. · Provide two (2) members to sit on the Measure N Oversight Committee. · Annually conduct a public opinion survey of residents’ satisfaction with City Services. · Provide training, review, and recommendations to Council for the distribution of non-profit youth grants.
· Provide input on the City’s use of Community Development Block Grants (CDBG) and other programs from Housing and Urban Development (HUD).
· Provide Council feedback on an annual basis with regards to proposed new and/or increased Visalia City Council Page 1 of 3 Printed on 11/3/2023
powered by Legistar™766
File #: 23-0425 Agenda Date: 11/6/2023 Agenda #: 19.
fees and rates.

If the recommended appointment of Julie Appelbaum and William Mann is approved by Council, the eleven (11) member committee will be made up of the following members:

CITIZEN’
S

ADVISOR
Y

COMMITT
EE Acts as
a liaison
between the
general
public and
the City
Council
concerning
community
issues.

Meetings held
the 1st
Wednesday
of each
month at 5:30
p.m. at City
administration
Building, 220
N. Santa Fe
St. Staff Rep:

Jason Serpa
and Luma
Fahoum;
Members: 11
Members - 2-
year term
length/3 max.
terms.

1. Jones, Ed 1st term: 7/2022 - 6/2024

2. Johnson, Alana 1st term: 7/2023-6/2025

3. Stewart, Glen 1st term: 7/2021-6/2023; 2nd term: 7/2023 - 6/2025

4. Donabed, Rebecca 1st term: 7/2021-6/2023; 2nd

5. Vacant - UET Term ends 6/2024

6. Ruiz, Frank 1st term: 7/2018-6/2020; 2nd term: 7/2020-6/2022; 3

7. Vacant - UET 1st term: 7/2023-6/2025

8. Vacant 1st term: 11/2023-6/2024

9. Prosser, Brian 1st term: 7/2022-6/2024

10. Salgado, Miguel UET: 5/2022-6/2023

11. Vacant (Term ends 6/2024)
Visalia City Council Page 2 of 3 Printed on 11/3/2023
powered by Legistar™767
File #: 23-0425 Agenda Date: 11/6/2023 Agenda #: 19.

Applicants:

Julie Appelbaum Has been a Visalia resident for 33 years and has worked primarily in the field of education. She also worked for Tulare County Mental Health Services. Julie is currently retired.

William Mann is a 42-year resident of Visalia and is currently retired. He was a member of the first Leadership Visalia in 1987 and has worked in management at several Visalia businesses. William previously served on the Civic Work Transportation Committee.

Fiscal Impact:

N/A
Prior Council Action: Council has historically affirmed the recommendations of the CAC related to the appointment of new members.

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

Approve the Citizens Advisory Committee’s recommendation to appoint Julie Appelbaum and William Mann to vacant positions on the committee. If appointed, they would fill terms that expire June 2025 and 2024 respectively.

Environmental Assessment Status: N/A
CEQA Review: N/A
Attachments: CAC Application for William Mann and Julie Appelbaum.

Visalia City Council Page 3 of 3 Printed on 11/3/2023
powered by Legistar™768
769
770
771
772
Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 23-0429 Agenda Date: 11/6/2023 Agenda #: 20.

Agenda Item Wording:

Second reading and adoption of Ordinance No. 2023-11 approving Zoning Text Amendment No. 2023 -01, a request by the City of Visalia to amend Title 17 (Zoning) Chapter 17.32 Special Provisions to regulate Short-Term Rentals in single and multi-family residential zones Citywide.

Deadline for Action: 11/6/2023
Submitting Department: Community Development
Contact Name and Phone Number:

Josh Dan, Senior Planner, [email protected] <mailto:[email protected]>, (559)713-4003 Paul Bernal, Community Development Director, [email protected] <mailto:[email protected]>, (559)713-4025
Department Recommendation:

Conduct the second reading and adopt Ordinance No. 2023-11 for Zoning Text Amendment No. 2023 -01.

Background Discussion:

On October 16, 2023, the City Council held a public hearing to consider Zoning Text Amendment No. 2023-01. The ZTA is a city initiated amendment to proposing to provide the framework for staff to implement a registration and permitting process for all short-term rentals occurring in all residential zones (i.e., R-1 and R-M zones) within the city.

At the meeting, a total of five (5) persons spoke, four in favor and one in opposition at the City Council meeting, and Council voted (4-0) to conduct the First Reading of Ordinance No. 2021-04 for Change of Zone No. 2021-02.

The second reading of the Ordinance is the final action the City Council takes in order for Zoning Text Amendment No. 2023-01 to take effect. Following the second reading and Council adoption, the ordinance will go into effect 30 days following adoption of the second reading.

Clarification and Implementation of Council Direction:

At the October 16, 2023, City Council meeting, staff had been requested to implement the requirement of the STR ordinance to extend to all residential zones (i.e.: all R-1 and R-M zones) within the city. Additionally, one member from the public wanted clarification regarding occupancy stemming from the September 25, 2023, Planning Commission meeting. Both items are addressed below:

Residential Zones:

Staff has added the following clarifications to the beginning of the proposed ordinance to detail that the purpose of this ordinance is to regulate STRs in all residential zones. This includes all R-1 and RVisalia City Council Page 1 of 3 Printed on 11/3/2023 powered by Legistar™773
File #: 23-0429 Agenda Date: 11/6/2023 Agenda #: 20.

M zone districts as listed: R-1-5, R-1-12.5, R-1-20, R-M-2, and R-M-3 zones:

Updated revision to Section 17.32.166.B
B. In addition to all other requirements of this chapter, and notwithstanding any contrary provisions in this Code, short-term rentals are subject to the following operational standards in all R-1 and R-M zones citywide:

Occupancy:

At the request of a member of the public regarding clarification on occupancy, staff listened to the audio file of the September 25, 2023, Planning Commission meeting. We found that the direction provided by the Planning Commission was to detail occupancy as two persons per room, plus one more. Based on this direction, staff has corrected the language and table in the proposed ordinance to reflect the following:

Updated revision to Section 17.32.166.B.7

7. The owner shall limit occupancy of a short-term rental property to a specific number of occupants. The following table sets forth the maximum number of occupants to two (2) per bedroom plus one (1):

Number of Bedrooms Total Occupants
Studio - 1 3
2 5
3 7
4 9
5 11
6 13
Fiscal Impact:

None.

Prior Council Action:

On October 16, 2023, Council voted (3-2) to conduct the First Reading of Ordinance No. 2023-11 for Zoning Text Amendment No. 2023-01.

Other:
· September 25, 2023: The Planning Commission held a public hearing and voted 4-0 recommending approval to the City Council of Zoning Text Amendment No. 2023-01. · August 28, 2023: The Planning Commission received a presentation and informative report regarding short-term rentals which included a synopsis of staff’s previous presentation to the City Council and explanation of directives received. The Planning Commission expressed agreement with Council’s directives.

Alternatives:

Visalia City Council Page 2 of 3 Printed on 11/3/2023
powered by Legistar™774
File #: 23-0429 Agenda Date: 11/6/2023 Agenda #: 20.

The City Council may, in lieu of the recommended motion, consider any of the following alternatives:

1. Refer all parts of the ordinance back to the Planning Commission for further review; or

2. Direct staff to not process any amendments to Visalia Municipal Code Section 17.32; or

3. 3. Continue the matter to a future City Council hearing for additional information.

Recommended Motion (and Alternative Motions if expected):

I move to approve the second reading of Ordinance No. 2023-11 for Zoning Text Amendment No. 2023-01.

Environmental Assessment Status:

The requested action is considered exempt under Section 15061(b)(3) of the State Guidelines for the California Environmental Quality Act (CEQA).

CEQA Review:

The requested action is considered exempt under Section 15061(b)(3), Per Section 15061(b)(3) of the State Guidelines for the California Environmental Quality Act (CEQA). A Notice of Exemption has been prepared for the project because Section 15061 (b) (3) states that the project is exempted from CEQA if the activity is covered by the commonsense exemption that CEQA applies only to projects that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. The proposed text amendment to establish performance standards for smoke shops will not have a significant effect on the environment.

Attachments:
· Attachment 1 - Ordinance No. 2023-11
Visalia City Council Page 3 of 3 Printed on 11/3/2023
powered by Legistar™775
ORDINANCE NO. 2023-11

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF VISALIA APPROVING ZONING TEXT AMENDMENT NO. 2023-11,
A REQUEST BY THE CITY OF VISALIA TO AMEND CHAPTER TITLE 17 (ZONING) CHAPTER 17.32 SPECIAL PROVISIONS TO REGUALTE SHORT-TERM RENTALS

IN SINGLE-FAMILY RESIDENTIAL ZONES, CITYWIDE
WHEREAS, Zoning Text Amendment No. 2023-11 is a request by the City of Visalia to amend Title 17 (Zoning) Chapter 17.32 Special Provisions to regulate ShortTerm Rentals in single-family residential zones, Citywide. The specific amendments apply City-wide and are specified in Attachment “A” of this Ordinance; and WHEREAS, the project is exempt under the California Environmental Quality Act (CEQA) Guidelines section 15061(b)(3) (common sense exemption); and WHEREAS, the Planning Commission of the City of Visalia, after duly published notice, held a public hearing before said Commission on September 25, 2023; and, WHEREAS, the Planning Commission of the City of Visalia considered the Zone Text Amendment in accordance with Section 17.44.070 of the Zoning Ordinance of the City of Visalia and on the evidence contained in the staff report and testimony presented at the public hearing; and,
WHEREAS, the City Council of the City of Visalia, after duly published notice, held a public hearing before said City Council on October 16, 2023, and introduced said Ordinance for first reading on that date.

NOW, THEREFORE, BE IT RESOLVED that the City Council concurs that the project is exempt from further review under the California Environmental Quality Act (CEQA) Guidelines section 15061(b)(3) (common sense exemption).

BE IT FURTHER RESOLVED that the City Council of the City of Visalia finds as follows:

1. That the proposed Zone Text Amendment is consistent with the intent of the General Plan, and Zoning Ordinance, and is not detrimental to the public health, safety, or welfare, or materially injurious to properties or improvements in the vicinity. The proposed zoning amendment is crafted to address public concerns, process operator application requests, and regulate STRs via codified objective standards.

2. That the proposed Zone Text Amendment is not inconsistent with any other Element of the General Plan.
776

3. That the project is exempt from further review under the California Environmental Quality Act (CEQA) Guidelines section 15061(b)(3) (common sense exemption).

NOW, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF VISALIA, that Zoning Text Amendment 2023-11, is approved, as contained in Attachment “A” of this Ordinance.

Severability. If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this Ordinance, or its application to any person or circumstances, is for any reason held to be invalid or unenforceable, such invalidity or unenforceability shall not affect the validity or enforceability of the remaining sections, subsections, subdivision, paragraphs, sentences, clauses or phrases of this Ordinance, or its application to any other person or circumstance. The City Council of the City of Visalia hereby declares that it would have adopted each section, subsection, subdivision, paragraph, sentence, clause or phrase hereof, irrespective of the fact that any one or more other sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases hereof be declared invalid or unenforceable.

Construction. The City Council intends this Ordinance to supplement, not to duplicate or contradict, applicable state and federal law and this Ordinance shall be construed in light of that intent.

Effective Date. This Ordinance shall take effect thirty days after its adoption.

Certification. The City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same to be published or posted according to law. 777
Ordinance No. 2023-11

ATTACHMENT A
Zoning Text Amendment No. 2023-11, amendment to Chapter 17.32 Special Provisions. Changes to City of Visalia Municipal Code, as specified by underline & italics for additions.

1. TITLE 17 Zoning
Chapter 17.32 Special Provisions
Section 17.32.166 Short-term rental permits.

A. Short-term rental permits may be processed as an administrative matter by the city planner and no hearing shall be required.

B. In addition to all other requirements of this chapter, and notwithstanding any contrary provisions in this Code, short-term rentals are subject to the following operational standards in all R-1 and R-M zones citywide:

1. Definitions. The definitions in this subsection shall govern the construction, meaning, and application of the following words and phrases used in this chapter:
a. “Local contact person” shall mean a person designated by an owner or the owner’s agent, who, if designated to act as such, shall be available to respond to notification of a complaint regarding the dwelling within forty-five (45) minutes, and take remedial action necessary, as required under subsection “4” of this section. A local contact person may be the owner or the owner’s agent.
b. “Occupant” shall mean any person who is on or in a short-term rental property other than service providers or the owner, whether or not the person stays overnight. c. “Operator” shall mean the owner or the designated agent of the owner who is responsible for compliance with this section.
d. “Owner” shall mean the person(s) or entity(ies) that holds legal or equitable title to a dwelling.
e. “Short-term rental” shall mean the rental of a dwelling or a portion thereof by the owner to another person or group of persons for occupancy, dwelling, lodging or sleeping purposes for a period of less than thirty (30) consecutive calendar days. The rental of units within City-approved hotels, motels, bed and breakfasts, and timeshare projects shall not be considered to be a short-term rental.

2. The owner of a short-term rental shall not be relieved of any personal responsibility or personal liability for noncompliance with any applicable law, regardless of whether such noncompliance was committed by the owner’s agent, a local contact person or the occupants of the owner’s short-term rental unit.

3. The owner shall ensure that the short-term rental comply with all applicable codes regarding fire, building and safety, and all other relevant laws, regulations and ordinances, obtain all permits required, and pay all applicable fees. 778

4. While a short-term rental is rented, the owner or a local contact person shall be available by telephone twenty-four (24) hours per day, seven (7) days per week to respond to complaints regarding the use, condition, operation or conduct of occupants of a short-term rental. The owner or a local contact person must be on the premises of the short-term rental at the request of an enforcement officer of the City’s Police Department within forty-five (45) minutes of contact to satisfactorily correct or take remedial action necessary to resolve any complaint, alleged nuisance or violation of this chapter by occupants occurring at the short-term rental property. Failure of the owner or a local contact person to respond to calls or complaints in a timely and appropriate manner shall be grounds for imposition of penalties as set forth in this chapter and/or Chapter 1.13 of Title 1.

5. Short-term rentals shall be used only for overnight lodging accommodations. At no time shall a short-term rental be used for activities in excess of the occupancy limits established in subsection 7 of this section, or for weddings, receptions, parties, commercial functions, advertised conferences, or other similar assemblies that are separate from the purpose of lodging.

6. All advertising appearing in any written publication or on any website that promotes the availability or existence of a short-term rental shall include the City-issued permit number as part of the rental offering. No person shall advertise the use of a dwelling as a shortterm rental unless the City has approved a permit for short-term rental pursuant to this chapter.

Number of
Bedrooms
Total
Occupants
Studio – 1 3
2 5
3 7
4 9
5 11
6 13

8. Only the habitable interior portions of a primary dwelling shall be utilized as a short-term rental. Garages, tents, camper trailers, recreational vehicles, accessory dwelling units (ADUs), or other exterior structures or spaces are not permissible as short-term rentals or as bedrooms within short term rental units.

9. In any advertising concerning the availability of a dwelling as a short-term rental, the owner or a local contact person shall advertise the maximum number of occupants allowed to occupy the short-term rental.
779

10.No on-site exterior signs shall be posted advertising the availability of a short-term rental at the short-term rental property.

11.All vehicles of occupants of a short-term rental unit shall be parked only in an improved driveway or garage on the short-term rental property. The maximum number of vehicles allowed on a short-term rental property shall be limited to the number of available offstreet parking spaces; however, such property must have a minimum of two (2) off-street parking spaces. The owner shall provide access to the garage of the dwelling if that area has been included in the determination of the number of available off-street parking spaces pursuant to this chapter. In no event shall off-street parking include the use of landscaped areas, any private or public sidewalk, parkway, walkway or alley (or any portion thereof) located on, at or adjacent to the short-term rental property, or the blocking of the driveway or street in front of said property. The term “sidewalk” shall include that portion of a driveway that is delineated for pedestrian travel or is in the public right-of-way.

12.If an enforcement officer has received a complaint concerning a suspected violation of this chapter or of this code or any applicable law, rule, or regulation pertaining to the use or occupancy of a short-term rental unit, or if the enforcement officer has reason to believe that such a violation has occurred, the enforcement officer may notify the owner or the local contact person of the complaint or suspected violation and the notified person shall cooperate in facilitating the investigation and the correction of the suspected violation.

Failure of the owner or the local contact person to affirmatively respond to the officer’s request within forty-five (45) minutes by reasonably cooperating in facilitating the investigation and the correction of the suspected violation shall be deemed to be a violation of this chapter. Notwithstanding the foregoing, it is not intended that an owner or the local contact person act as a peace officer or place himself or herself in an at-risk situation.

13.Notwithstanding Visalia Municipal Code Section 9.32.040, no musical instrument, phonograph, loudspeaker, amplified or reproduced sound, or any machine or device for the production or reproduction of any sound shall be used outside or be audible from the outside of a short-term rental unit between the hours of 7:00 p.m. and 6:00 a.m.

14.Occupants shall not engage in outdoor activities on a short-term rental property between the hours of 10:00 p.m. and 6:00 a.m., such as the use of swimming pools, hot tubs, spas, tennis and paddleboard courts, play equipment and other similar and related improvements. The hours between 10:00 p.m. and 6:00 a.m. are considered to be “quiet time,” where all activities at a short-term rental property shall be conducted inside of a short-term rental unit so that no outdoor activity will disturb the peace and quiet of the neighborhood adjacent to a short-term rental property or cause discomfort or annoyance to any reasonable person of normal sensitivity residing in the area.

15.It is unlawful for any owner, occupant, renter, lessee, person present upon, or person having charge or possession of a short-term rental to make or continue or cause to be made or continued any loud, unnecessary or unusual noise which disturbs the peace and quiet of any neighborhood or which causes discomfort or annoyance to any reasonable person of normal sensitivity residing in the area, or violates any provision of Title 8 Health and Safety.
780

16.The owner and the local contact person shall ensure that the occupants of a short-term rental unit do not create unreasonable noise or disturbances, engage in disorderly conduct, or violate provisions of this Code or any State law pertaining to noise, disorderly conduct, overcrowding, the consumption of alcohol, or the use of illegal drugs. Owners and local contact persons are expected to take any measures necessary to abate disturbances, including, but not limited to, directing the occupants of a short-term rental unit to cease the disturbing conduct, calling for law enforcement services or enforcement officers, removing the occupant(s), or taking any other action necessary to immediately abate the disturbance.

17.Trash and refuse shall not be left stored within public view, except in proper containers for the purpose of collection by the responsible trash hauler, as set forth in Chapter 8.28, which provides for containers to be placed at the curb on the day of pickup and removed by 7:00 p.m. on the day of collection. The owner of a short-term rental property shall provide sufficient trash collection containers and service to meet the demand of the occupants. The short-term rental property shall be free of debris both on site and in the adjacent portion of the street.

18.The owner shall post a sign at a conspicuous location within the short-term rental advising occupants of all rules and operational standards imposed upon occupants under this section.

19.All short-term rentals shall be subject to the City’s transient occupancy tax, as required by Title 3 Revenue and Finance, Chapter 3.28 Transient Occupancy Tax. The owner shall also maintain, at all times, a valid City of Visalia business license.

20.Short-term rentals shall not exceed one unit per parcel in any residentially zoned district.

C. A short-term rental permit shall be revoked by the city planner upon violation of any condition or regulation, or any limitation of any permit issued, unless such violation is corrected within ten (10) days of notice of such violation. Any permit may be revoked if three or more violations occur within a one-year period or the required transient occupancy tax payments are not made to the City as required under Chapter 3.28.

D. In the event of denial or revocation, or objections to limitations placed thereon, an appeal may be made in writing to the planning commission. Such appeal shall be filed in writing with the city planner, in writing, within ten (10) business days after notification of the denial or revocation, with payment of appeal fees in the same amount as required for the appeal of a site plan review permit as provided in Chapter 17.28. The planning commission shall review and either uphold or deny the city planner decision.

The decision of the planning commission shall be final unless appealed to the city council pursuant to Section 17.02.145.
781
Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 23-0412 Agenda Date: 11/6/2023 Agenda #: 21.

Agenda Item Wording:

Authorize an amendment to the contract dated August 25th of 2021 between The City of Visalia’s Transit division and Kaweah Maintenance to include additional work to the existing scope on a monthly basis not to exceed an additional $13,500 annually for a total of $84,220 annually.

Deadline for Action: None
Submitting Department: Administration - Transit Division Contact Name and Phone Number:

Angelina DeRossett, Transit Manager, [email protected] (559) 713-4591 Nick Mascia, Assistant City Manager, [email protected], (559) 713-4323 Department Recommendation:

Staff recommends that Council authorize an amendment to the contract dated August 25th of 2021 between The City of Visalia’s Transit division and Kaweah Maintenance to include additional work to the existing scope on a monthly basis not to exceed an additional $13,500 annually for a total of $84,220 annually.

Background Discussion:

In 2021 staff went out to bid for the annual concrete cleaning contract at the Transit Center located downtown at 425 E. Oak Avenue. At the time staff received four (4) bids and awarded the contract to the lowest bidder Kaweah Maintenance in the amount of $70,720 per year to pressure wash the passenger areas and bus lanes at the Transit Center twice per week.

Since that time, additional cleaning at the Transit Center has become necessary due to the rising foot traffic and the homeless population that uses the Transit Center overnight. Bird and human waste have become difficult to keep up with, and the two weekly visits are no longer enough to keep the Transit Center clean, sanitary and presentable. Additionally, staff would like to add that Kaweah Maintenance pressure wash the trash enclosures located at the Transit Center and The Administration building (also owned by the Transit division) as the homeless population has begun to make additional messes in the trash enclosure areas at both sites. Currently the trash enclosures are not being cleaned at all. The additional dollars added to this contract will pay for one additional pressure washing visit each week to bring the weekly visits up to 3, and one trash enclosure cleaning for both buildings once per month. During the weekly visits, Kaweah Maintenance pressure washes the bus lanes and passenger waiting area to include sidewalks, and benches. The 3rd weekly visit will include the same tasks on an additional day per week. The following chart depicts what the current contract includes, and the additional that staff is requesting.

Description Quantity per year Rate (Cost per
week)
Current Amount
(Cost per month)
Additional Scope
(Cost per month)
Passenger Areas 52 $680 $35,360
Bus Lanes Steam
Clean
26 $680 $17,680
Bus Lanes Surface
Scrub
26 $680 $17,680
Trash Enclosure
Cleaning
26 $75 $1950 (Admin &
Transit)
AM Bus Depot
Pressure Washing
52 $225 $11,700
TOTAL (Yearly) $70,720 $13,500
The attached quote lists out three options for the additional scope of work requested. The first is the trash enclosure cleaning which have been included in the chart above. The second option is the choice between an additional four monthly full-scale cleaning for $680 per week (doubling the Passenger Area line item), or a smaller passenger area spot cleaning for $225 per visit. Due to the cost and the current need, staff would like to add the additional “AM Bus Depot Pressure Washing” option for an additional $225 per week over the line-item extension of the “Passenger Areas” from the original contract.

With City Council approval, the contractor will clean the passenger areas twice a week; once with the deep cleaning and the second with the additional scope of work spot cleaning. This effort will be coupled with the bus lane cleaning and the additional scope of work for the trash enclosures that occurs once every two weeks. Staff will monitor the proposed increase in scope of work and evaluate the effectiveness at the end of the year to determine if the spot cleaning should intensify to the full deep cleaning.

Fiscal Impact:

This contract is paid out of the Transit operations budget 4551 under the contracted services line item. The additional $12,675 will come out of the same budgeted line item as follows 4551-55201.

The remaining $975 will be charged to Administration to cover the monthly trash enclosure cost of $75 per their request.

Prior Council Action:

July 19th, 2021 Approval of the contract agreement for the Transit Center Concrete Cleaning for Visalia Transit Center between the City of Visalia and Kaweah Maintenance.

Other:

N/A
Alternatives:

N/A
Visalia City Council Page 2 of 3 Printed on 11/3/2023
powered by Legistar™783
File #: 23-0412 Agenda Date: 11/6/2023 Agenda #: 21.

Recommended Motion (and Alternative Motions if expected):

I move to authorize the City Manager to amend the contract with Kaweah Maintenance increasing the not to exceed annual amount to $84,220 (additional $13,500) for the expanded services identified herein.

Environmental Assessment Status:

N/A
CEQA Review:

N/A
Attachments:

Kaweah Maintenance Contract
Kaweah Maintenance Quote
Visalia City Council Page 3 of 3 Printed on 11/3/2023
powered by Legistar™784
785
786
787
788
789
790
791
792
793
794
795
796
797
798
799
800
801
802
803
804
805
806
807
808
809
810
811
812
813
814
815
816
Kaweah Maintenance Quote 10/10/2023
Trash Bin Receptacle Cleaning:

Pick up loose trash, apply chlorine solution to dumpsters and surrounding area, allow 10 minutes dwell time, steam clean dumpster exteriors, pressure wash enclosure walls and ground. (Can be scheduled once per month)
$75/visit
Additional evening pressure washing service ($680):

This would be the same exact service that is described in the current scope of work.

We are currently providing this service on Tuesday and Friday evenings.(proposed schedule Mon, Wed & Fri evenings 9:30pm - 1:30am pressure wash all passenger areas and one alternating bus lane per visit)
$680/visit
AM Bus Depot Pressure Washing:

A morning cleaning service would include completely washing all bird droppings around the main bus depot building and entrances. Spot cleaning other problem areas as time permits. (proposed time 5-7am)
$225/visit
817
Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 23-0423 Agenda Date: 11/6/2023 Agenda #: 1.

Agenda Item Wording:

Conduct the first of two public hearings to amend the Measure N Spending Plan to appropriate $190,000 and advance the purchase of one (1) marked patrol vehicle for FY 24/25 and purchase one (1) marked patrol vehicle to replace a Measure N funded Dodge Charger. In addition, staff is requesting to appropriate an additional $30,000 to address the budget shortfall for FY 23/24 vehicle purchases.

Deadline for Action: 11/6/2023
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 $190,000 and advance the purchase of one (1) marked patrol vehicle for FY 24/25 and purchase one (1) marked patrol vehicle to replace a Measure N funded Dodge Charger, that was wrecked and totaled by a drunk driver. In addition, staff is requesting to appropriate an additional $30,000 to address the budget shortfall for FY 23/24 vehicle purchases.

Summary:

On June 19th, 2023, City Council approved an amendment to Measure N for the purchase of two (2) Dodge Charger patrol vehicles that were budgeted for FY 21/22 and 22/23. The vehicles had not been purchased in previous years due to low inventory and vehicle cost increases. This approval was provided after staff had presented to the Measure N Committee and conducted two Public Hearings.

Since presenting and receiving approval to increase the allocation, staff were notified that Dodge was no longer going to produce gas-powered Dodge Chargers in 2024, and due to high demand, there is no 2023 models available for purchase. Staff prepared a report to council on August 21, 2023, seeking approval to enter into the Measure N amendment process, with the intention of recommending the purchase of Ford Police Interceptors. However, due to circumstances currently affecting the automotive industry as a whole, Ford has not shown any indication of opening an ordering window. As a result, Staff have determined that the Dodge Durango provides city staff with the highest likelihood to both order and receive the full request. Despite staff’s original assessment, staff requested the Measure N Committee to further increase funding to $190,000 for two new vehicles and $30,000 for FY23/24 vehicle purchases to ensure all acceptable options are available to Visalia City Council Page 1 of 3 Printed on 11/3/2023
powered by Legistar™818
File #: 23-0423 Agenda Date: 11/6/2023 Agenda #: 1.
the Department should additional changes affect the automotive industry.

Background Discussion:

As a result of the discontinuation of the Dodge Charger, staff have been working to identify a suitable option to replace it. In anticipation of the high demand and limited supply, staff presented a request to the City Council on August 21st, 2023, to begin the Measure N amendment process. The projections provided by staff were based on the purchase and upfit cost for the Ford Police Interceptor, which was the most cost-efficient option to best serve the needs of the Department. As a result of this report, the City Council approved staff to initiate the Measure N amendment process.

Shortly after the August 21st Council meeting, the UAW initiated a strike of all three major automotive manufacturers. Because of this strike, Ford elected not to open their order window for purchasing and there is no indication that it will be opening soon. Despite this, Stellantis (Dodge) did open their ordering window for the Dodge Durango. The Dodge Durango is comparable in performance and maintenance to the Ford Police Interceptor and has been reviewed/approved by the Fleet Division.

Additionally, because the City is a current customer, the organization will receive priority for ordering due to customer loyalty.

The estimated price for the Dodge Durango is consistent with the projections previously provided to council. However, due to the ongoing dynamic nature of the automotive industry, staff believe that it is appropriate to raise the requested increase to $95,000 per vehicle. This authorization request is due to the current strike and the uncertainties of that situation, and inflation. This will serve as a safety measure should the projections fall short or other external conditions impact the current situation. It will also provide staff with the flexibility to make immediate decisions and prevent the city from having to consider more dramatic means to resolving the ordering crisis facing the law enforcement industry.

The requested appropriations would allow the Department to advance the purchase of the 24/25 Measure N vehicle and replace a 2019 Measure N Vehicle that was totaled during a collision with a drunk driver. The city is working with the insurance carrier for the at-fault drunk driver to recover damages from the collision; however, this process can take a significant amount of time. Once received, the recovered damages will be reimbursed to Measure N.

On September 28, 2023, staff presented the above-listed concerns and information to the Measure N Committee. Upon completion of the presentation and consideration of public comments, the committee voted unanimously to recommend increasing Measure N appropriations as requested above.

Fiscal Impact:

Staff is requesting an additional appropriation of $30,000 to address a budget shortfall to purchase two (2) Measure N marked patrol vehicles currently budgeted; and appropriate $190,000 for the advance purchase of 1 Measure N marked patrol vehicle from FY 24/25 and replace one (1) wrecked patrol vehicle.

Prior Council Action: June 19, 2023: Council approved motion to amend Measure N spending plan.

August 21, 2023: Council approved motion to amend Measure N spending plan.

Other: N/A
Visalia City Council Page 2 of 3 Printed on 11/3/2023
powered by Legistar™819
File #: 23-0423 Agenda Date: 11/6/2023 Agenda #: 1.

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 $190,000 and advance the purchase of one (1) marked patrol vehicle for FY 24/25 and purchase one (1) marked patrol vehicle to replace a Measure N funded Dodge Charger, that was wrecked and totaled by a drunk driver. In addition, staff is requesting to appropriate an additional $30,000 to address the budget shortfall of FY 23/24 vehicle purchases.

Environmental Assessment Status: N/A
CEQA Review: N/A
Attachments: None.

Visalia City Council Page 3 of 3 Printed on 11/3/2023
powered by Legistar™820
Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 23-0302 Agenda Date: 11/6/2023 Agenda #: 2.

Agenda Item Wording:

Authorize the City Manager to execute an agreement and appropriate an additional $425,000 in Successor Agency Housing (SAH) funds for Visalia Homekey LP to convert the Majestic Motel at 4545 W. Noble Avenue into a 42-unit Permanent Affordable Rental Housing complex for qualifying populations.

Deadline for Action: 11/6/2023
Submitting Department: Finance and Technology Services
Contact Name and Phone Number:

Margie Perez, Housing Specialist, [email protected] <mailto:[email protected]>, (559) 713-4460;
Melody Murch, Assistant Finance Director, [email protected] <mailto:[email protected]>, (559) 713-4379;
Renee Nagel, Finance Director, [email protected] <mailto:[email protected]> (559) 713-4375.

Department Recommendation:

Staff recommends that Council:
1) Appropriate Successor Agency Housing (SAH) funds, in the amount of $425,000 with affordable housing provisions for a period of 55 years between the City of Visalia and Visalia Homekey LP, for the conversion of the Majestic Motel to develop a 42-unit Permanent Affordable Rental Housing complex for qualifying populations; and 2) Authorize the City Manager or their designee to negotiate, make minor changes, and execute the necessary contracts and loan agreements.

Background Discussion:

On July 18, 2022, Council awarded RFP 21-22-28 to RHCB Development LP (RHCB) to convert the Majestic Motel at 4545 W. Noble Avenue into the Majestic Gardens, a Permanent Affordable Rental Housing complex with on-site wrap-around intensive case management and supportive services for people experiencing homelessness at or below 30% of the area median income (AMI) level in accordance with HOME American Rescue Plan Program (HOME-ARP) Qualifying Populations, with the use of $1.8 million in HOME-ARP funds, and $900,000 in Successor Agency Housing (SAH) funds. The Majestic Gardens total acquisition and rehabilitation capital costs are $17,298,880 and the project has secured $16,225,070 in capital development funding, which will cover 94% of the total costs. To assist in funding the Majestic Gardens development gap and meeting funding expenditure tight deadlines, staff recommends providing an additional $425,000 in available Successor Agency Housing (SAH) funds to the development of the project. This agenda item is to execute the agreements as required by the City Purchasing Policy.

Visalia City Council Page 1 of 5 Printed on 11/3/2023
powered by Legistar™821
File #: 23-0302 Agenda Date: 11/6/2023 Agenda #: 2.

Funding Secured: The project has secured $1,022,000 in Housing and Homelessness Incentive Program (HHIP) funds and $207,691 in Homeless Housing, Assistance, and Prevention (HHAP) Round 4 funding. RHCB in partnership with UPHoldings, and Housing on Merit formed Visalia Homekey Limited Partnership (LP) for the Visalia Majestic Homekey Project.

Homekey: The Majestic Gardens project was contingent upon a successful award from the California Department of Housing and Community Development (HCD) Project Homekey Round 3. On September 26, 2023, the City of Visalia was notified of a Homekey Round 3 award in the total amount of 13,835,376, which includes $12,295,379 for capital costs and $1,539,997 for operating costs for the Majestic Gardens. Homekey capital funds must be expended within eight months of the date of the award. HCD may extend the eight (8) month expenditure deadline by up to seven (7) months, upon the request of the grantee. All operating funds must be fully disbursed by HCD by June 30, 2025, and fully expended by the grantee by no later than June 30, 2026.

Majestic Gardens Funding Summary: The Majestic Gardens total acquisition and rehabilitation capital costs are $17,298,880 and the project has secured $16,225,070 in capital development funding, which will cover 94% of the total costs. As a result, the Majestic Gardens development gap is $1,073,810 as shown below in Table 1: Majestic Gardens Development Funding Summary.

Successor Agency Housing Funds: To assist in funding the Majestic Gardens development gap and meeting funding expenditure tight deadlines, staff recommends providing an additional $425,000 in available Successor Agency Housing (SAH) funds to the development of the project. Due to the repayment of past loans made from the Successor Agency Housing (SAH) funds, there is currently $427,842 in uncommitted SAH funds available for the development of permanent affordable housing for low-income households, as shown below in Table 2: Successor Agency Housing (SAH) Balance.

SAH regulations require at least 30% of funds to be used to develop affordable housing for households at or below 30% of the area median income. The Majestic Project helps the City meet this State funding requirement.

Other uses for these SAH funds can include development of affordable housing for households at or below 80% of the area median income level, with at least 30% of the funds for households at or below 30% of the area median income level. However, staff does not recommend this since the available SAH funds are only a small amount for a development project and will require a $5,000 annual monitoring fee for the life of the 55-year affordability period in accordance with SAH Visalia City Council Page 2 of 5 Printed on 11/3/2023
powered by Legistar™822
File #: 23-0302 Agenda Date: 11/6/2023 Agenda #: 2.
regulations. This project is already involved in the monitoring process so this additional funding will not trigger another fee or additional monitoring.

Approval of the proposed SAH amendment would bring the City’s SAH commitment from $900,000 to $1,325,000 for the development of Majestic Gardens, leaving a remaining funding gap of approximately $648,810 as shown in Table 3: Majestic Gardens Development Gap. To close the gap, the City in partnership with Visalia Homekey LP, the project sponsor, intends to apply for Encampment Resolution Funding (ERF) Round 3 grant funding. ERF Round 3 Notice of Funding Opportunity is expected to be released December 1, 2023, and awards are expected to be released in 2024.

Project and Loan Agreement Terms:

The City will provide two loans to Visalia Homekey LP for the Majestic Gardens Project. The first for HOME-ARP funds, in the amount of $1,800,000 and the second, if approved, for SAH funds in the amount of $1,325,000, for a total of $3,125,000. Repayment of these loans will be contingent upon the availability of residual receipts from operation of the project. Residual receipts are defined as net operating revenues (operating revenues less operation and maintenance costs) available from the Project. This will be monitored annually by City staff who will review affordable unit rents, property condition, and financial audits.

Rental Restriction Covenants:

The property will carry three separate rental restriction covenants for each funding source to ensure grant compliance with HOME-ARP, SAH, and Homekey grant funding. The property will carry a twenty (20) year rental restrictive covenant to ensure HOME-ARP compliance that will restrict units to HOME-ARP qualifying populations. Additionally, the property will carry a fifty-five (55) year rental restrictive covenant as required by State law for restricted affordable SAH and Homekey funds. The City will annually monitor the property for continued restricted use during the life of the affordability periods.

Visalia City Council Page 3 of 5 Printed on 11/3/2023
powered by Legistar™823
File #: 23-0302 Agenda Date: 11/6/2023 Agenda #: 2.

Fiscal Impact:

Approval of this proposed funding would commit the available fund balance in the Successor Agency Housing Fund (362) in the amount of $425,000 to the Majestic Gardens Project (CP0516). Upon approval, an appropriation for this additional $425,000 would be added to this project budget, bringing the total Successor Agency Housing commitment to $1,325,000. No General Fund money is included in, or requested for, this project.

Prior Council Action:
● December 20, 2021 - HOME-ARP public hearing to review and comment on the development of the HOME-ARP Allocation Plan. Approval to release an RFP for the use of $1,800,000 of HOME-ARP funds and $900,000 in SAH funds for the development of affordable rental housing for qualifying populations.
● April 18, 2022 - Approval of 2021 Annual Action Plan Amendment, HOME-ARP Allocation Plan, and appropriate $1,800,000 in HOME-ARP funds for a HOME-ARP project. ● July 18, 2022 - Approval of RFP 21-22-28 to RHCH Development LP to convert the Majestic Motel at 4545 W. Noble Avenue for the development of a 42-unit permanent affordable rental housing complex for qualifying populations.
● April 17, 2023 - Approval to apply for Homekey Round 3.0 not to exceed $15 million to assist with the development and operation of the Majestic Project.

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

I move that Council:
1) Appropriate Successor Agency Housing (SAH) funds, in the amount of $425,000 with affordable housing provisions for a period of 55 years with the City of Visalia and Visalia Homekey LP, for the conversion of the Majestic Motel to develop a 42-unit Permanent Affordable Rental Housing complex for qualifying populations; and 2) Authorize the City Manager and staff to negotiate, make minor changes, and execute the necessary contracts and loan agreements.

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

Attachment A - Homekey Rd 3 Award Letter
Attachment B - RHCB Letter of Request
Attachment C - SAH Draft Agreement
Visalia City Council Page 4 of 5 Printed on 11/3/2023
powered by Legistar™824
File #: 23-0302 Agenda Date: 11/6/2023 Agenda #: 2.

Visalia City Council Page 5 of 5 Printed on 11/3/2023
powered by Legistar™825
STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor

DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT

DIVISION OF STATE FINANCIAL ASSISTANCE
2020 W. El Camino Avenue, Suite 670
P.O. Box 952054
Sacramento, CA 94252-2054
(916) 263-2771
www.hcd.ca.gov
September 26, 2023
Leslie Caviglia, City Manager
City of Visalia
220 North Santa Fe Street
Visalia, CA 93292
Wayne Rutledge, Chief Executive Officer
RHCB Development LP
3040 North Fresno Street
Fresno, CA 93703
Dear Leslie Caviglia and Wayne Rutledge:

RE: Award Announcement – Homekey Program
Notice of Funding Availability, Fiscal Year 2023/2024, Round 3 City of Visalia and RHCB Development LP – Majestic Gardens Contract No. 23-HK-17984
The California Department of Housing and Community Development (Department) is pleased to announce that the City of Visalia and RHCB Development LP (Awardees) have been awarded a Homekey Round 3 award in the amount of $13,835,376. This letter constitutes notice of the designation of Homekey funds for the Awardees.

Awardees will be able to draw down funds when the Standard Agreement is fully executed, and any general and special conditions have been cleared in writing.

Your Ambassador will be in communication with you to develop the Standard Agreement and confirm any documents needed to execute this contract.

The Homekey Round 3 NOFA award is under a media and public announcement embargo until released by the Office of the Governor or otherwise notified by HCD staff. HCD will provide updates on the timing of the public award announcement and provide a social media toolkit and a quote from the HCD Director for use in local media releases.

Congratulations on your successful application. For further information, please contact Connor Leahy, Homekey Program Manager, Program Design and Implementation Branch, at (916) 820-1207 or [email protected].

Sincerely,
Jennifer Seeger
Deputy Director
Division of State Financial Assistance
826
October 16, 2023
City of Visalia
Majestic Gardens
Supplemental Housing Successor Agency Funds Request
Majestic Gardens is a proposed permanent supportive housing development located at 4545 W. Noble Avenue in Visalia, CA. The existing 42-unit motel will be rehabilitated and converted into 1 manger’s unit and 41 units of permanent supportive housing. All units will be targeted to chronically homeless individuals that are living with disabilities such as mental illness, substance use issues, physical disabilities, HIV/AIDS, and other chronic health conditions. The project will feature designated office and community space so that supportive services can be provided onsite. Majestic Gardens has been brought forth in partnership between the City of Visalia, RHCB Development LP, and UP Holdings LLC to address the housing needs of homeless individuals.

The total development cost for Majestic Gardens is $17,298,880. Currently, the project has been awarded a $12,295,379 Homekey 3.0 grant for capital expenditure from the Department of Housing and Community Development (HCD). The project has also been awarded $1,800,000 in HOME ARP funds and $900,000 in Housing Successor funds by the City of Visalia, along with $502,000 in Housing and Homelessness Incentive Program (HHIP) funds from Anthem Blue Cross, $520,000 in HHIP funds from Health Net and $207,691 in Homeless Housing and Prevention Program (HHAP) funds from the Kings/Tulare Homeless Alliance.

Funding Source Amount
HCD - Homekey 3.0 $ 12,295,379
City of Visalia - HOME ARP $ 1,800,000
City of Visalia - Housing Successor $ 900,000
Health Net and Blue Anthem -HHIP $ 1,022,000
Kings/Tulare Homeless Alliance - HHAP $ 207,691
Total Secured Funds: $ 16,225,070
Total Development Cost: $ 17,298,880
Funding Gap: $ (1,073,810)
Currently, this project faces a $1,073,810 funding gap. As such, we write to you to request an additional $425,000 in funds for this project. The main driver behind this request is the unforeseen escalation of construction costs, which have reached a historical high in the past year. As such, our team continues to value engineer the design of this project to reduce construction costs and ultimately, the total development cost to bridge this gap. However, our efforts to value engineer this building are limited without jeopardizing its ability to align with city codes and our sustainability targets. As such, we seek the City’s support in bridging this gap. We fully recognize the need for fiscal responsibility and are committed to managing costs efficiently. We greatly appreciate the City of Visalia’s continued support and partnership throughout the planning and development of this project.

Thank you for your consideration,
Wayne Rutledge
RHCB Development LP
827
1 HOUSING SUCCESSOR LOAN AGREEMENT BETWEEN THE CITY OF VISALIA AND RHCB DEVELOPMENT, L.P.

THIS AGREEMENT ("Agreement") dated as of _______________, 2023, is entered into by and between the CITY OF VISALIA, in its capacity as Housing Successor to the former Community Redevelopment Agency of the City of Visalia ("City"), and RHCB Development, L.P., a California limited partnership (hereinafter “RHCB”).

RECITALS
The following recitals are a substantive part of this Agreement:

A. RHCB desires to develop a 42-unit multi-family affordable housing project, which will operate as permanent supportive housing, located at 4545 W. Noble Avenue in the City of Visalia, and more particularly described and identified in "Exhibit A," attached hereto and incorporated herein (the "Property"); and
B. RHCB is a limited partnership, the sole member of the general partner of which is a non-profit organization that, among other things, rehabilitates and develops affordable housing projects; and
C. Pursuant to Section 34176.1(a)(3) of the California Health and Safety Code, the City, as the housing successor to the Community Redevelopment Agency of the City of Visalia, has authority to utilize funding from its Successor Agency Housing Fund for the purpose of developing housing affordable to and occupied by households earning 80% or less of the area median income, including households earning 30% or less of the area median income; and D. RHCB proposes to develop a multifamily affordable housing complex with 42 units, composed of one manager’s unit and 41 units committed to low-income affordable permanent supportive housing on the Property (the "Project). The Project will be rented to qualified low-income households as defined in the CRL and the terms and conditions set forth herein, to ensure the Property will be utilized for affordable housing for the longest feasible period; and
E. City and RHCB desire to enter into this Agreement to set the terms and conditions under which City can loan to RHCB a portion of the City's available Successor Agency Housing Fund for the Project.

NOW, THEREFORE, City and RHCB hereby agree as follows:

1. CITY LOAN
a. Loan Terms. In consideration of RHCB's obligations hereunder, and to ensure the Project remains affordable in accordance with the Rental Restriction (provided for under Section 3 hereof), and subject to the terms and conditions of this Agreement, the City will provide financial assistance to RHCB for the Project in an amount up to Nine Hundred Thousand Dollars ($900,00.00) to assist in acquisition and construction of the Project. As evidence of the City Loan, RHCB shall execute and deliver a promissory note to City in the form acceptable to City, which Note shall be in the initial principal amount of the City Loan. The Note shall be secured 828
2 by a standard form Deed of Trust from a title company acceptable to the City, and an Addendum to Deed of Trust in a form acceptable to the City, to be recorded against the Property. b. Disbursement of City Loan. City shall provide to RHCB up to Nine Hundred Thousand Dollars ($900,00.00) for the actual cost of acquisition and construction of the Project.

Funding shall be disbursed on a reimbursement basis for Project costs actually incurred. RHCB shall submit invoices, as well as any other documentation required by the City necessary to support reimbursement for Project expenditures.
c. Requirements of RHCB The City loan shall be used for acquisition and construction of the dwelling units on the Property in substantial conformance with the line items identified in the “Project Budget,” attached hereto as Exhibit “B” and incorporated herein by this reference. The City loan shall be a fifty-five (55) year, 0% interest principal only loan, payable by RHCB and its successors and assigns, in accord with the terms and conditions contained in this Agreement, and in the Note and the amortization schedule attached thereto.

The City Loan shall be repayable to the City in fifty-five (55) annual payments commencing on the first-year anniversary of this Agreement, however each annual payment on the City Loan shall only be required to the extent there is cash flow available from the Project. In each year that RHCB demonstrates that no cash flow is available to pay such payments as determined in the order of priority set forth in Section 7.03 of RHCB Development LP Partnership Agreement, the principal balance of the loan shall accrue and be payable to the extent of Cash Flow for the following year. Cash Flow shall have the definition set forth in Borrower’s Partnership Agreement. If the Project fails to generate Cash Flow sufficient to make payments for an annual period, no annual payment shall be due. If the Project generates Cash Flow in an amount less than the required annual payment, then only such amount shall be due, and the remainder shall accrue. Should RHCB, its successors, or assigns sell the Property or fail to satisfy any of the terms and conditions herein, and as stated in the Rental Restriction required in Section 3, which are not otherwise waived by the City, RHCB shall be obligated to repay the City Loan in full within 30 days of written notification by the City. i. Subject to the expiration of any applicable cure period, RHCB shall not be in default of any of its obligations under the terms of this Agreement. ii. Recordation of Resale Restriction. Prior to the initial disbursement of funds from City to RHCB, RHCB shall execute and record the Rental Restriction required herein.
iii. Within 30 days of the execution of this Agreement, RHCB shall have furnished City with evidence of the insurance coverage required under Section 2. iv. RHCB shall assist City with and shall provide all documentation necessary for all reporting requirements and obligations required by the State and local law.

2. DEVELOPMENT OF THE PROPERTY
a. Scope of Development. RHCB shall acquire all of the parcels comprising the Property, and shall develop a 42-unit multifamily affordable housing complex, that will be 829
3 committed to permanent supportive housing on the Property in accordance with the Project Plans, Schedule and Budget attached hereto as "Exhibit B." b. Insurance and Indemnification. RHCB shall at all times cause the Project to be insured against loss by fire, flood, and such other hazards, casualties, liabilities and contingencies, in an amount not less than the full insurable value of the Project on a replacement cost basis and shall furnish or cause to be furnished to the City evidence satisfactory to City that RHCB and any contractor with whom it has contracted for the performance of work on the Property or otherwise pursuant to this Agreement carries workers' compensation insurance as required by law. All insurance policies and renewals thereof shall be issued by a carrier and in a form acceptable to the City. Property insurance policies shall name the City as an additional insured, as approved by the City.

RHCB and its successors in interest agree to indemnify, defend, and hold harmless the City and its agents, employees, volunteers and officers from any and all claims, losses, liabilities or causes of action (including reasonable attorney's fees) arising from or in connection with RHCB's development, management, maintenance or operation of the Project; provided, however, RHCB's obligations to indemnify and hold harmless shall not apply in the event and to the extent of the City's willful misconduct or gross negligence.
c. City and Other Governmental Agency Permits. RHCB shall secure and maintain, or cause to be secured and maintained, any and all permits or entitlements that may be required by City or any other governmental agency affected, or which has jurisdiction over the construction of the Project.
d. Antidiscrimination during Construction. RHCB, for itself, and its successors and assigns, agrees that in the construction of Project on the property, RHCB shall not discriminate against any employee or applicant for employment because of race, color, creed, religion, sex, marital status, ancestry, or national origin. e. Compliance with Laws. RHCB shall carry out the construction and development of the Project in conformity with all applicable laws; City zoning and development standards; building, plumbing, mechanical and electrical codes; all other provisions of the City's Municipal Code; and all applicable disabled and handicapped access requirements, including the Americans With Disabilities Act, 42 U.S.C. Section 12101, et seq., Government Code Section 4450, et seq., Government Code Section 7260, et seq., Government Code Section 11135, et seq., and the Unruh Civil Rights Act, Civil Code Section 51, et seq.
f. Prevailing Wages. To the extent applicable, RHCB shall comply with all requirements of the Department of Industrial Relations in accordance with the California Labor Code, and all other applicable federal, state, and local laws and regulations pertaining to labor standards and payment of prevailing wages (collectively, "Prevailing Wage Laws"). As applicable, RHCB shall (i) require its contractors and subcontractors to submit certified copies of payroll records to RHCB; (ii) maintain complete copies of such certified payroll records; and (iii) make such records available to City and its designees for inspection and copying during regular business hours at the Property or at another location within the City of Visalia. 830
4 RHCB shall defend, indemnify and hold harmless City and its officers, employees, volunteers, agents and representatives from and against any and all present and future causes of action, claims, liabilities, obligations, damages, fines, penalties, judgments, actions or expenses (including attorney fees) (collectively, the "Claims"), arising out of or in any way connected with RHCB's obligation to comply with all governmental requirements, including all Claims that may be made by contractors, subcontractors or other third party claimants pursuant to Labor Code Sections 1726 and 1781, as amended and added by Senate Bill 966.

RHCB hereby waives, releases and discharges forever City, and its employees, officers, volunteers, agents and representatives, from any and all present and future Claims arising out of or in any way connected with RHCB's obligation to comply with all Prevailing Wage Laws in connection with the work of the Improvements.

RHCB is aware of and familiar with the provisions of Section 1542 of the California Civil Code which provides as follows:

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE

CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT

THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM

MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE
DEBTOR.

As such relates to this Section 2, RHCB hereby waives and relinquishes all rights and benefits which it may have under Section 1542 of the California Civil Code. g. Taxes and Assessments. RHCB shall pay prior to delinquency all ad valorem real estate taxes and assessments on the Property, subject to RHCB's right to contest in good faith any such taxes. RHCB shall remove or have removed any levy or attachment made on the Property or any part thereof or assure the satisfaction thereof within thirty (30) days following the date of attachment or levy.
h. Condition of the Property. RHCB shall take all necessary precautions to prevent the release into the environment of any Hazardous Materials (as defined below) that are located in, on or under the Property. Such precautions shall include compliance with all Governmental Requirements with respect to Hazardous Materials. In addition, RHCB shall install and utilize such equipment and implement and adhere to such procedures as are consistent with the standards prevailing in the industry, to the extent such standards exceed applicable Governmental Requirements, as respects the disclosure, storage, use, removal, and disposal of Hazardous Materials. RHCB shall cause each release of Hazardous Materials in, on or under the Property to be remediated in accordance with all Governmental Requirements.

RHCB agrees to indemnify, defend and hold City, City and their officers, employees, volunteers, agents and representatives harmless from and against any and all Claims, resulting from, arising out of, or based upon (i) the presence, release, use, generation, discharge, storage or disposal of any Hazardous Materials on, under, in or about, or the transportation of any such Hazardous Materials to or from, the Property, or (ii) the violation, or alleged violation, of any statute, ordinance, order, rule, regulation, permit, judgment or license relating to the use, generation, release, discharge, storage, disposal or transportation of Hazardous Materials on, 831
5 under, in or about, to or from, the Property, caused by RHCB or any of RHCB's predecessors in interest. This indemnity shall include any damage, liability, fine, penalty, parallel indemnity, cost, or expense arising from or out of any claim, action, suit or proceeding for bodily injury (including sickness, disease or death), tangible or intangible property damage, compensation for lost wages, business income, profits or other economic or consequential loss, damage to the natural resource or the environment, nuisance, contamination, leak, spill, release or other adverse effects on the environment but shall exclude any claims resulting from the gross negligence and/or willful misconduct of the City.
"Hazardous Materials" means any substance, material, or waste which is or becomes regulated by any local governmental authority, the State of California, or the United States Government, including, but not limited to, any material or substance which is: (i) defined as a "hazardous waste," "extremely hazardous waste," or "restricted hazardous waste" under Sections 25115, 25117 or 25122.7, or listed pursuant to Section 25140 of the California Health and Safety Code, Division 20, Chapter 6.5 (Hazardous Waste Control Law); (ii) defined as a "hazardous substance" under Section 25316 of the California Health and Safety Code, Division 20, Chapter

6.8 (Carpenter-Presley-Tanner Hazardous Substance Account Act); (iii) defined as a "hazardous material," "hazardous substance," or "hazardous waste" under Section 25501 of the California Health and Safety Code, Division 20, Chapter 6.95 (Hazardous Materials Release Response Plans and Inventory); (iv) defined as a "hazardous substance" under Section 25281 of the California Health and Safety Code, Division 20, Chapter 6.7 (Underground Storage of Hazardous Substances); (v) petroleum; (vi) friable asbestos; (vii) polychlorinated biphenyls; (viii) listed under Article 9 or defined as "hazardous" or "extremely hazardous" pursuant to Article 11 of Title 22 of the California Administrative Code, Division 4, Chapter 20; (ix) designated as "hazardous substances" pursuant to Section 311 of the Clean Water Act (33 U.S.C. §1317); (x) defined as a "hazardous waste" pursuant to Section 1004 of the Resource Conservation and Recovery Act, 42 U.S.C. §6901, et seq. (42 U.S.C. §6903); or (xi) defined as "hazardous substances" pursuant to Section 101 of the Comprehensive Environmental Response, Compensation, and Liability Act, 42 U.S.C. §9601, et seq., as the foregoing statutes and regulations now exist or may hereafter be amended.

3. COVENANTS, RESTRICTIONS AND AGREEMENTS
a. Use Covenants; Rental Restrictions. RHCB covenants and agrees for itself, its successors, its assigns and every successor in interest that, the Property shall be used for affordable housing purposes and that the Project to be constructed on the Property shall be rented to qualified low-income households ("Qualified Household"), in accordance with the terms of the Rental Restriction Agreement to be provided by City (the "Rental Restriction"). The foregoing covenant shall run with the land. Failure to maintain the use of the Property and the Project in accordance with this Section shall be a material default of this Agreement. b. Maintenance Covenants. RHCB shall maintain the Project in accordance with the custom and practice generally applicable to multifamily residential units in the City of Visalia, the Project and associated landscaping on the Property. Said maintenance shall include, but not be limited to, the building, sidewalks, lighting, landscaping, irrigation of landscaping, and any and all other improvements on the Property.
832
6 c. Obligation to Refrain from Discrimination. RHCB covenants by and for itself and any successors in interest that there shall be no discrimination against or segregation of any person or group of persons on account of race, color, creed, religion, sex, sexual preference, source of income, marital status, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Property, nor shall RHCB itself or any person claiming under or through them establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees of the Property. The foregoing covenants shall run with the land.
d. Form of Nondiscrimination and Nonsegregation Covenants. All deeds, leases or contracts for the rental, sale or lease of the Property shall contain or be subject to substantially the following nondiscrimination or nonsegregation clauses:
i. In deeds. "The grantee herein covenants by and for himself or herself, his or her heirs, executors, administrators and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, sexual preference, source of income, marital status, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the land herein conveyed, nor shall the grantee or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees in the land herein conveyed. The foregoing covenants shall run with the land." ii. In leases. "The lessee herein covenants by and for himself or herself, his or her heirs, executors, administrators, and assigns, and all persons claiming under or through him or her, and this lease is made and accepted upon and subject to the following conditions: that there shall be no discrimination against or segregation of any person or group of persons, on account of race, color, creed, religion, sex, sexual preference, source of income, marital status, national origin, or ancestry in the leasing, subleasing, transferring, use, occupancy, tenure, or enjoyment of the premises herein leased nor shall the lessee himself or herself, or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy of tenants, lessees, sublessees, subtenants, or vendees in the premises herein leased." iii. In contracts. "There shall be no discrimination against or segregation of, any person, or group of persons on account of race, color, creed, religion, sex, sexual preference, source of income, marital status, national origin, or ancestry, in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the premises, nor shall the transferee himself or herself or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees of the premises."
e. Rights of Access. For purposes of assuring compliance with this Agreement, representatives of the City shall have the right of access to the Property, without charges or fees, 833
7 at normal business hours. The City (or its representatives) shall, except in emergency situations, notify RHCB prior to exercising its rights pursuant to this Section. Nothing herein shall be deemed to limit the ability of the City to conduct code enforcement and other administrative inspections of the Property in accordance with applicable law. f. Effect of Violation of the Terms and Provisions of this Agreement after Completion of Rehabilitation. City is deemed to be the beneficiary of the terms and provisions of this Agreement and of the covenants running with the land, for and in its own right and for the purposes of protecting the interests of the community and other parties, public or private, in whose favor and for whose benefit this Agreement and the covenants running with the land have been provided, without regard to whether the City has been, remains or is an owner of any land or interest therein in the Property. City shall have the right, if the Agreement or covenants are breached, to exercise all rights and remedies, and to maintain any actions or suits at law or in equity or other proper proceedings to enforce the curing of such breaches to which it or any other beneficiaries of this Agreement and covenants may be entitled. Unless otherwise specifically provided, the covenants contained in this Agreement shall remain in effect until the issuance by the City of a certificate of occupancy for the Project, except for the following:
i. The covenants pertaining to use and maintenance of the Property and all improvements thereon, shall remain in effect for fifty-five (55) years from the date of recordation of the Rental Restriction.
ii. The covenants against discrimination shall remain in effect in perpetuity.

4. DEFAULTS AND REMEDIES
a. Default Remedies. Subject to the permitted extensions of time as provided in Section 5 of this Agreement, failure by any party to perform any action or covenant required by this Agreement within the time periods provided herein following Notice and expiration of any applicable cure period, shall constitute a "Default" under this Agreement. A party claiming a Default shall give written Notice of Default to the defaulting party specifying the Default complained of. Except as otherwise expressly provided in this Agreement, the claimant shall not institute any proceeding against any other party, and no other party shall be in Default if such party within thirty (30) days following receipt of such Notice of Default immediately, with due diligence, commences to cure, correct, or remedy such failure or delay and completes such cure, correction, or remedy with diligence.
b. Institution of Legal Actions. Except as otherwise specifically provided herein, upon the occurrence of a Default, the party or parties claiming a Default shall have the right, in addition to any other rights or remedies, to institute any action at law or in equity to cure, correct, prevent, or remedy any Default, or to recover damages for any Default, or to obtain any other remedy consistent with the purpose of this Agreement. Such legal actions must be instituted in the Superior Court of the County of Tulare, State of California, in an appropriate superior court in that County or in the Federal District Court for the Central District of the State of California.

Notwithstanding anything herein to the contrary, RHCB's right to recover damages in the event of a Default by City shall be limited to recovery of actual damages and shall exclude consequential damages.
834
8 c. Acceptance of Service of Process. In the event that any legal action is commenced by RHCB against the City, service of process on the City shall be made by personal service upon the City Clerk of the City or in such other manner as may be provided by law. In the event that any legal action is commenced by the City against RHCB, service of process on RHCB shall be made by personal service upon a Director of RHCB, or in such other manner as may be provided by law.
d. Rights and Remedies Are Cumulative. The rights and remedies of the parties are cumulative, and the exercise by any party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party, except as otherwise expressly provided herein or in the limited recourse provisions in the Note. e. Inaction Not a Waiver of Default. Any failures or delays by any party in asserting any of its rights and remedies as to any Default shall not operate as a waiver of any Default or of any such rights or remedies or deprive either such party of its right to institute and maintain any actions or proceedings which it may deem necessary to protect, assert or enforce any such rights or remedies.

5. GENERAL PROVISIONS
a. Notices, Demands and Communications between the Parties. Any approval, disapproval, demand, document or other notice ("Notice") which any party may desire to give to the other parties under this Agreement must be in writing and may be given by any commercially acceptable means, including, but not limited to, via overnight courier, to the party to whom the Notice is directed at the address of the party as set forth below, or at any other address as that party may later designate by Notice.

To City: City of Visalia
Attention: Finance Department - Housing
707 W. Acequia Avenue
Visalia, CA 93291
Email: [email protected]
Phone: (559) 713-4460
To RHCB: c/o RHCB Development LP
Attention: Wayne Rutledge, CEO
352 W. Bedford Ave., Ste. 110
Fresno, CA 93711
Email: [email protected]
Phone: (559) 213-7373
835
9 Any written notice, demand or communication shall be deemed received immediately if delivered by hand, on the third day from the date it is postmarked if delivered by first-class mail, postage prepaid, upon receipt of verification of transmission if sent via facsimile provided a copy is sent the same day via first-class mail, and on the next business day if sent via nationally recognized overnight courier. Notices sent by a party's attorney on behalf of such party shall be deemed delivered by such party.
b. Enforced Delay; Extension of Times of Performance. Subject to the limitations set forth below, performance by any party hereunder shall not be deemed to be in Default, and all performance and other dates specified in this Agreement shall be extended, where delays or Defaults are due to: war; insurrection; strikes; lockouts; riots; floods; earthquakes; fires; casualties; acts of God; acts of the public enemy; epidemics; quarantine restrictions; freight embargoes; governmental restrictions or priority; litigation; unusually severe weather; acts or omissions of the other party; or acts or failures to act of the City or any other public or governmental City or entity (other than the acts or failures to act of the City under this Agreement which shall not excuse performance by the City). An extension of time for any such cause shall be for the period of the enforced delay and shall commence to run from the time of the commencement of the cause (but in any event shall not exceed a cumulative total of one hundred twenty (120) days), if Notice by the party claiming such extension is sent to the other party within thirty (30) days of the commencement of the cause. Times of performance under this Agreement may also be extended in writing by the mutual agreement of City and RHCB RHCB expressly agrees that adverse changes in economic conditions, either of RHCB specifically or the economy generally, changes in market conditions or demand, and/or RHCB's inability to obtain financing or other lack of funding to complete the Project shall not constitute grounds of enforced delay pursuant to this Section 5. RHCB expressly assumes the risk of such adverse economic or market changes and/or inability to obtain financing, whether or not foreseeable as of the date of this Agreement.
c. Successors and Assigns. All of the terms, covenants and conditions of this Agreement shall be binding upon RHCB and its permitted successors and assigns. Whenever the term "RHCB" is used in this Agreement, such term shall include any other permitted successors and assigns as herein provided.
d. Relationship between City and RHCB It is hereby acknowledged that the relationship between City and RHCB is not that of a partnership or joint venture and that the City and RHCB shall not be deemed or construed for any purpose to be the agent of the other.

Accordingly, except as expressly provided herein or in the Attachments hereto, the City shall have no rights, powers, duties, or obligations with respect to the development, operation, maintenance or management of the Property or the Project. RHCB agrees to indemnify, hold harmless and defend the City from any claim made against the City arising from a claimed relationship of partnership or joint venture between the City and RHCB with respect to the development, operation, maintenance or management of the Property or the Project unless due to the gross negligence or willful misconduct of City.
e. City Approvals and Actions. Whenever a reference is made herein to an action or approval to be undertaken by the City, the City Manager of the City or his or her designee is authorized to act on behalf of the City unless specifically provided otherwise or the context should require otherwise.
836
10 f. Counterparts. This Agreement may be signed in multiple counterparts which, when signed by all parties, shall constitute a binding agreement. g. Titles and Captions. Titles and captions are for convenience of reference only and do not define, describe, or limit the scope or the intent of this Agreement or of any of its terms.

References to section numbers are to sections in this Agreement, unless expressly stated otherwise.
h. Interpretation. As used in this Agreement, masculine, feminine or neuter gender and the singular or plural number shall each be deemed to include the others where and when the context so dictates. The word "including" shall be construed as if followed by the words "without limitation." This Agreement shall be interpreted as though prepared jointly by all parties. i. No Waiver. A waiver by any party of a breach of any of the covenants, conditions, or agreements under this Agreement to be performed by another party shall not be construed as a waiver of any succeeding breach of the same or other covenants, agreements, restrictions, or conditions of this Agreement. j. Modifications. Any alteration, change or modification of or to this Agreement, in order to become effective, shall be made in writing and in each instance signed on behalf of each party.
k. Severability. If any term, provision, condition or covenant of this Agreement or its application to any party or circumstances shall be held, to any extent, invalid or unenforceable, the remainder of this Agreement, or the application of the term, provision, condition or covenant to persons or circumstances other than those as to whom or which it is held invalid or unenforceable, shall not be affected, and shall be valid and enforceable to the fullest extent permitted by law.
l. Computation of Time. The time in which any act is to be done under this Agreement is computed by excluding the first day (such as the day escrow opens), and including the last day, unless the last day is a holiday or Saturday or Sunday, and then that day is also excluded. The term "holiday" shall mean all holidays as specified in Sections 6700 and 6701 of the California Government Code. If any act is to be done by a particular time during a day, that time shall be Pacific Time Zone time.
m. Legal Advice. Each party represents and warrants to the other the following: they have carefully read this Agreement, and in signing this Agreement, they do so with full knowledge of any right which they may have; they have received independent legal advice from their respective legal counsel as to the matters set forth in this Agreement, or have knowingly chosen not to consult legal counsel as to the matters set forth in this Agreement; and, they have freely signed this Agreement without any reliance upon any agreement, promise, statement or representation by or on behalf of the other party, or their respective agents, employees, or attorneys, except as specifically set forth in this Agreement, and without duress or coercion, whether economic or otherwise.
n. Time of Essence. Time is of the essence with respect to the performance by City and RHCB of each and every obligation and condition of this Agreement. 837
11 o. Cooperation. Each party agrees to cooperate with the other parties in this transaction and, in that regard, shall execute any and all documents which may be reasonably necessary, helpful, or appropriate to carry out the purposes and intent of this Agreement including, but not limited to, releases or additional agreements. p. Conflicts of Interest. No member, official or employee of the City or RHCB shall have any personal interest, direct or indirect, in this Agreement, nor shall any such member, official or employee participate in any decision relating to the Agreement which affects his personal interests or the interests of any corporation, partnership or association in which he is directly or indirectly interested.
q. RHCB's Indemnity. RHCB shall defend (with counsel reasonably acceptable to the City), indemnify, assume all responsibility for, and hold the City and its officers, employees, volunteers, agents and representatives, harmless from any and all Claims of any kind or nature relating to the subject matter of this Agreement or the implementation hereof and for any damages to property or injuries to persons, including accidental death (including reasonable attorneys fees and costs), which may be caused by any of RHCB's activities under this Agreement, whether such activities or performance thereof be by RHCB or by anyone directly or indirectly employed or contracted with by RHCB and whether such damage shall accrue or be discovered before or after termination of this Agreement. RHCB's indemnity obligations under this Section 618 shall not extend to Claims occasioned by the sole negligence or willful misconduct of City or its designated agents or employees. r. Nonliability of Officials and Employees of City and RHCB No member, official or employee of City shall be personally liable to RHCB, or any successor in interest, in the event of any Default or breach by City or for any amount which may become due to RHCB or its successors, or on any obligations under the terms of this Agreement. No member, official or employee of RHCB shall be personally liable to City, or any successor in interest, in the event of any Default or breach by RHCB or for any amount which may become due to City or its successors, or on any obligations under the terms of this Agreement. City and RHCB each hereby waive and releases any claim it may have against the members, officials, or employees of the other with respect to any Default or breach by the other or for any amount which may become due to it or its successors, or on any obligations under the terms of this Agreement. City and RHCB each make such release with full knowledge of Civil Code Section 1542 and hereby waives any and all rights thereunder to the extent of this release, if such Section 1542 is applicable. Section 1542 of the Civil Code provides as follows:
"A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE

CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT

THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM

MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE
DEBTOR."
As such relates to this Section, City and RHCB each hereby waives and relinquishes all rights and benefits that it may have under Section 1542 of the California Civil Code. s. Assignment by City. City may assign or transfer any of its rights or obligations under this Agreement with the approval of RHCB, which approval shall not be unreasonably 838
12 withheld; provided, however, that the City may assign or transfer any of its interests hereunder to the City, or any public or private entity controlled by the City at any time without the consent of RHCB.
t. Assignment by RHCB. RHCB shall not transfer or assign this Agreement, the Note, the Deed of Trust, or its interest in the Property or the Project or any portion thereof without prior written approval by the City. Approval of any such transfer or assignment shall be at the sole discretion of the City. Notwithstanding anything to the contrary contained herein, City hereby expressly approves of a transfer of the Project to RHCB Development LP or an affiliate thereof following the expiration of the tax credit compliance period in accordance with the terms of a purchase option and/or right of first refusal. Further notwithstanding anything to the contrary contained herein or in the Loan Documents, the City expressly approves the transfer of partnership interests in Owner as permitted under Owner’s Amended and Restated Partnership Agreement.
u. Applicable Law. The laws of the State of California, without regard to conflict of laws principles, shall govern the interpretation and enforcement of this Agreement.

IN WITNESS WHEREOF, City and RHCB have executed this Agreement on the respective dates set forth below.

THE CITY OF VISALIA, a public body,
corporate and politic
Dated: ________________, 2023 By: ___________________________________ City Manager
APPROVED AS TO FORM:
______________________________________
Attorney for City
RHCB Development LP, a California limited partnership
By: WRBH LLC, a California limited liability company, its General Partner ___________________________
By: Wayne Rutledge, its Manager
By: AHBH LLC, a California limited liability company, its Co-Limited Partner ________________________
By: Brad Hardie, its Manager
839
13 By: Wayne and Rena Rutledge Revocable Trust, its Co-Limited Partner __________________________
By: Wayne Rutledge, its Trustee
840
14 Exhibit “A”
Legal Description of the Property
To be added.
841
15 Exhibit “B”
Project Budget
To be added.
842
Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 23-0382 Agenda Date: 11/6/2023 Agenda #: 3.

Agenda Item Wording:

First reading and public hearing for Ordinance No. 2023-13 for Zoning Text Amendment No. 2023-02, a request by the City of Visalia to add Chapter 5.66, amend Chapter 8.64, add section 17.32.167. and amend Visalia Municipal Code Chapter 17.25, in order to address upcoming state mandated changes as a result of the passage of Senate Bill (SB) 1186, the “Medicinal Cannabis Patients’ Right of Access Act,” and establish objective standards for permitting delivery only medical marijuana retail establishments within the City of Visalia.

Deadline for Action: 11/6/2023
Submitting Department: Community Development
Contact Name and Phone Number:

Devon Jones, Economic Development Manager, [email protected] <mailto:[email protected]>, 713-4190 Paul Bernal, Community Development Director, [email protected] <mailto:[email protected]>, 713-4025 Department Recommendation:

Staff recommends that the City Council hold a public hearing and introduce the first reading of Ordinance No. 2023-13 for Zoning Text Amendment (ZTA) No. 2023-02 to amend the following Municipal Code Chapters:

1. Title 5: Add Chapter 5.66 “Regulations and Requirements for Cannabis Businesses Permitted to Operate Under California State Law”.

2. Title 8: Amend Chapter 8.64 “Public Use/Consumption of Medical Marijuana”.

3. Title 17: Amend Chapter 17.25

4. Add section 17.32.167 “Delivery only medical marijuana retail” to the Visalia Municipal Code.

The amendments and additions to several sections of the municipal code is required to address upcoming state mandated changes as a result of the passage of SB 1186, the “Medicinal Cannabis Patients’ Right of Access Act,” and establishes objective standards for permitting delivery only medical marijuana retail establishments within the City of Visalia.

Summary:

On July 17, 2023, staff conducted a work session with City Council on this subject and gained authority to proceed with municipal code updates to Title 5 Business Regulations, Title 8 Health and Safety, and Title 17 Zoning. Further, on October 9, 2023, the Planning Commission adopted Resolution No. 2023-52 recommending that the City Council approve adoption of ZTA No. 2023-02.

This zoning ordinance update is seeking to implement reasonable zoning regulations in response to SB 1186.

Visalia City Council Page 1 of 12 Printed on 11/3/2023
powered by Legistar™843
File #: 23-0382 Agenda Date: 11/6/2023 Agenda #: 3.

Background:

SB 1186 states:
“(a) A local jurisdiction shall not adopt or enforce any regulation that prohibits the retail sale by delivery within the local jurisdiction of medicinal cannabis to medicinal cannabis patients or their primary caregivers, or that otherwise has the effect of prohibiting the retail sale by delivery within the local jurisdiction of medicinal cannabis to medicinal cannabis patients or their primary caregivers by licensed medicinal cannabis businesses in a timely and readily accessible manner, and in types and quantities that are sufficient to meet demand from medicinal cannabis patients within the local jurisdiction, including, but not limited to, regulation of any of the following that has the effect of prohibiting the retail sale by delivery of medicinal cannabis:
(1) The number of medicinal cannabis businesses authorized to deliver medicinal cannabis in the local jurisdiction.
(2) The operating hours of medicinal cannabis businesses. (3) The number or frequency of sales by delivery of medicinal cannabis. (4) The types or quantities of medicinal cannabis authorized to be sold by delivery. (5) The establishment of physical premises from which retail sale by delivery of medicinal cannabis within the jurisdiction is conducted by a licensed non-storefront retailer, except that this paragraph shall not be construed to require the establishment of additional physical premises in a local jurisdiction that allowed medicinal cannabis retail as of January 1, 2022, and in which at least one physical premises engaged in the retail sale of medicinal cannabis, whether storefront or delivery, is already established.” However, SB 1186 also states:
“(b) Nothing in this chapter shall be construed to prohibit the adoption or enforcement of reasonable regulations on retail sale by delivery of medicinal cannabis, including, but not limited to, reasonable regulations related to:
(1) Zoning requirements that are not inconsistent with subdivision (a). If compliance with subdivision (a) would otherwise require a local jurisdiction to authorize a physical premises from which retail sale by delivery of medicinal cannabis within the jurisdiction is conducted, this paragraph shall not be construed to alter that requirement. (2) Security or public health and safety requirements.
(3) Licensing requirements.
(4) The imposition, collection, and remittance of any applicable state or local taxes upon retail sales occurring within the local jurisdiction.
(5) Regulations consistent with requirements or restrictions imposed on cannabis businesses by this division or regulations issued under this division. (c) Nothing in this chapter shall be construed to limit or otherwise affect the ability of a local jurisdiction to adopt or enforce any regulations on commercial cannabis operations other Visalia City Council Page 2 of 12 Printed on 11/3/2023
powered by Legistar™844
File #: 23-0382 Agenda Date: 11/6/2023 Agenda #: 3.
than retail sale by delivery of medicinal cannabis in the local jurisdiction.” In response to SB 1186, ZTA No. 2023-02 is a city-initiated request to address imminent state mandated changes as a result of the passage of SB 1186, the “Medicinal Cannabis Patients’ Right of Access Act” which becomes effective on January 1, 2024. After this date, “delivery only” (delivery of medicinal cannabis) businesses will be permitted, subject to reasonable zoning regulations for public health and safety, within the City of Visalia. This means that warehouse-based businesses could legally operate in the City of Visalia as long as they sold medicinal cannabis via delivery only (no retail store front). The City’s current municipal code prohibits cannabis businesses from operating within the City of Visalia, and this prohibition will not be enforceable when the new state law becomes effective for delivery only medicinal cannabis businesses. Visalia has no zoning or operational standards established specific to this type of use. ZTA No. 2023-02 establishes objective standards for permitting this specific type of cannabis business within our jurisdiction while all other types of cannabis businesses would remain prohibited.

Proposed Municipal Code Updates:

1. Add Chapter 5.66 “Regulations and Requirements for Cannabis Businesses Permitted to Operate Under California State Law”.

Under this new municipal code chapter, the following standards under the purview of the Visalia Police Department are required:
· Security plans, including cameras will be required for the site and the Visalia Police Department will be required to review and approve the security plans prior to these businesses being allowed to operate. Video cameras of all entrances, product storage area, building exterior, and parking area will be required as part of the security plan. · A site plan of the proposed business will be required. · These businesses will be required to be closed to the public. Sales will only be permitted by delivery. This is also covered in new Section 8.64 as noted below. · Delivery vehicles will be inspected by City and obtain an operating permit prior to use and must meet all state requirements for cannabis delivery vehicles. · Background inspections of all owners and all drivers will be required for the business to operate.
· These businesses will be required to prevent the smell of marijuana from the business from being detected on adjacent private properties and the public right of way. This will require an odor control plan be prepared and submitted to the City for approval.

Performance standards are also incorporated into Chapter 5.66 provided in detail, including:
· Maintaining a valid M-license (medicinal designation) and Type 9 license (non-storefront retailer, delivery only) in good standing from the CA Department of Cannabis Control required.
· Entry into the premises by the general public is prohibited. All sales are to be made by delivery Visalia City Council Page 3 of 12 Printed on 11/3/2023
powered by Legistar™845
File #: 23-0382 Agenda Date: 11/6/2023 Agenda #: 3.
· Entry into the premises by the general public is prohibited. All sales are to be made by delivery offsite only.
· Background checks required for all new employees, managers, or owners, prior to hiring. · Meeting all requirements stated in VMC Chapter 8.64.055.

Please review the attached Ordinance No. 2023-13 for all the changes made with Chapter 5.66.

2. Amend Chapter 8.64 “Public Use/Consumption of Medical Marijuana”.

Staff will include modifications to portions of current municipal code Chapter 8.64 that broadly prohibit all commercial cannabis activities. This section will be revised to reflect state law mandating that delivery only businesses that sell medical marijuana will be a “permitted” use, subject to applicable zoning and operational requirements. This will also require the creation of a new section,

8.64.055, to define delivery only medical marijuana retail dispensary.

This Chapter defines the use as follows:
“A delivery only medical marijuana retail dispensary is any facility or location operated by a state licensed non-storefront retailer possessing a current M-license and Type 9 license from CA Department of Cannabis Control where medical marijuana is made available, and/or distributed by method of delivery only, with no on-site customer services of any kind, to medicinal cannabis patients, as defined in Section 11362.7 of the Health and Safety Code, who possess a physician’s recommendation that complies with Article 25 (commencing with Section 2525) of Chapter 5 of Division 2, or a qualified patient or primary caregiver for a qualified patient issued a valid identification card pursuant to Section 11362.71 of the Health and Safety Code.” Please review the attached Ordinance No. 2023-13 for all the changes made to Chapter 8.64.

3. Amend Title 17, Chapter 17.25 Commercial, Mixed Use, Office, and Industrial Zones Use Matrix:

The City of Visalia Title 17 Zoning provides a precise and detailed plan for the use of land within the city, and more precisely works to achieve the policies and objectives of the General Plan.

The amendment to Chapter 17.25 is as follows:

1. Add new line M46, “Delivery only medical marijuana retail” to be permitted in Light Industrial (IL) and Industrial (I) zones in accordance with Chapters 5.66, 8.64, and 17.32.167.

Given the explicit delivery requirements under SB 1186, including the prohibition that no retail storefront be permitted, this use closely resembles that of a trucking/warehousing/internet fulfillment centers in many ways, and as such, these uses are listed as “Permitted” in both the Light Industrial and Industrial zones. Furthermore, trucking/warehousing/internet fulfillment centers are also “Permitted” in the Service Commercial (C-S) zone; however, staff is not recommending the C-S zone be listed due to a majority of this zoning designation being located in areas of the community (Ben Maddox corridor and East Main Street) that are in close proximity to sensitive land uses which would conflict with the proposed zoning objective standards described in greater detail below. There are concerns of secondary impacts that this type of business could influence young persons if the business is visible similar to tobacco Visalia City Council Page 4 of 12 Printed on 11/3/2023
powered by Legistar™846
File #: 23-0382 Agenda Date: 11/6/2023 Agenda #: 3.
type of business could influence young persons if the business is visible similar to tobacco stores, and there are concerns over these types of businesses being targets of crime since cannabis businesses often have cash as well as cannabis on hand. Based on staff’s analysis, staff recommends “Delivery only medical marijuana retail” uses be “Permitted” in both the Light Industrial and Industrial zones.

Visalia City Council Page 5 of 12 Printed on 11/3/2023
powered by Legistar™847
File #: 23-0382 Agenda Date: 11/6/2023 Agenda #: 3.

2. Amend lines M46 - M65 accordingly (see Zone Matrix chart below).

Visalia City Council Page 6 of 12 Printed on 11/3/2023
powered by Legistar™848
File #: 23-0382 Agenda Date: 11/6/2023 Agenda #: 3.

Visalia City Council Page 7 of 12 Printed on 11/3/2023
powered by Legistar™849
File #: 23-0382 Agenda Date: 11/6/2023 Agenda #: 3.

4. Visalia City Council Page 8 of 12 Printed on 11/3/2023 powered by Legistar™850
File #: 23-0382 Agenda Date: 11/6/2023 Agenda #: 3.

Visalia City Council Page 9 of 12 Printed on 11/3/2023
powered by Legistar™851
File #: 23-0382 Agenda Date: 11/6/2023 Agenda #: 3.

Add new Special Provisions Section 17.32.167 “Delivery only Medical Marijuana Retail:

Chapter 17.32 Special Provisions has served as a chapter of the Zoning Ordinance to address items which have not otherwise been explicitly address in specific zones but work to structure performance standards or operational standards for specific uses or within specified zones. New Section 17.32.167 has been drafted to contain the following provisions to regulate delivery only medical marijuana retail uses subject to the following objective standards:

A. Purpose and Intent. It is the purpose of this section to allow, in certain cases and subject to specific zoning restrictions and development and operational standards, the operation of delivery only medical marijuana retail facilities and to regulate such operations for the protection of the general health, safety and welfare of the citizens of the city.

B. Zoning Restrictions:

1. Use is permitted in the Light Industrial (I-L) Zone and Industrial (I) Zone.

2. Marijuana cultivation is not permitted.

3. Delivery only medical marijuana retail businesses shall not be located:

Within five hundred (500) feet of any existing or planned public, private, or parochial schools, elementary schools, middle schools, or high schools located either inside or outside of the city limits.

As used in this section, “existing” means existing at the time the permit application is submitted. “Planned” means property designated on the general plan of the city for such use, or other official planning documents of the city, or property owned or leased by the city for such use.

C. Parking requirements.

One parking space for each employee during the shift of maximum employment, plus one parking space for each vehicle used in conjunction with the use is required.

D. Fencing and/or security gates.

A minimum seven foot fence or security gates shall be required subject to the provisions as defined in Section 17.36.070.

E. Signage.

All signage is subject to the requirements as defined in Section 17.48.

F. Other Delivery only medical marijuana retail standards.

Delivery only medical marijuana retail establishments must also meet all requirements of Chapter 5.66 - Regulations and Requirements for Cannabis Businesses Permitted to Operate Under California State Law.

Please review the attached Ordinance No. 2023-13 for all the changes made to Title 17.

Additional ‘buffer’ options:

The Planning Commission supported staff’s recommendation that a 500-foot ‘buffer’ from sensitive uses be established as noted in Section 17.36.167.B.3.i. of the proposed ordinance. When this item was previously raised, consideration of a buffer from sensitive uses, similar to the buffer requirement for adult businesses, such as smoke shops, was discussed to prevent encouraging usage of drugs Visalia City Council Page 10 of 12 Printed on 11/3/2023 powered by Legistar™852
File #: 23-0382 Agenda Date: 11/6/2023 Agenda #: 3.
for adult businesses, such as smoke shops, was discussed to prevent encouraging usage of drugs by minors and concerns over crime being drawn to businesses that sell cannabis. A buffer greater than 500-feet potentially limits the number of Light Industrial zoned sites which would otherwise be eligible for a delivery business. Reducing the number of Light Industrial zoned properties could be construed as not meeting the intent of SB 1186 by limiting the number of eligible sites in the Light Industrial zone if a ‘buffer’ greater than 500-feet was implemented (see attached 750 ft. and 1,000 ft. map exhibits). Additionally, because onsite retail sales are prohibited, entry into these premises by the general public is not allowed, and safety plans are required per Title 5, Section 5.66, staff concludes typical concerns due to locating this type of business proximity to sensitive uses may not be as applicable and are recommending a smaller buffer.

Fiscal Impact: None
Prior Council Action:

Committee/Commission Review and Action:

On October 9, 2023, the Planning Commission adopted Resolution No. 2023-52 recommending that the City Council approve adoption of ZTA No. 2023-02 related to revisions to Title 17.

Alternatives:

The City Council, in lieu of the recommendation, may direct staff to consider the following:

1. Deny the Zoning Text Amendment in whole or in part;

2. Return the items to the Planning Commission for further consideration.

Please note that effective on January 1, 2024, “delivery only” (delivery of medicinal cannabis) businesses will be permitted to operate in the City of Visalia by state law SB 1186, regardless of City regulations in place or not.

Recommended Motion (and Alternative Motions if expected):

I move to introduce for first reading Ordinance No. 2023-13 for Zone Text Amendment No. 2023-02.

Environmental Assessment Status:

The requested action is considered exempt under Section 15061(b)(3) of the State Guidelines for the California Environmental Quality Act (CEQA).

CEQA Review:

The requested action is considered exempt under Section 15061(b)(3), Per Section 15061(b)(3) of the State Guidelines for the California Environmental Quality Act (CEQA). A Notice of Exemption No. 2023-46 has been prepared for the project because Section 15061 (b) (3) states that the project is exempted from CEQA if the activity is covered by the common sense exemption that CEQA applies only to projects that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. The proposed text amendment to establish objective standards for delivery only medical marijuana retail establishments Visalia City Council Page 11 of 12 Printed on 11/3/2023 powered by Legistar™853
File #: 23-0382 Agenda Date: 11/6/2023 Agenda #: 3.
will not have a significant effect on the environment.

Attachments:

1. Ordinance No. 2023-13 for Zoning Text Amendment No. 2023-02

2. Planning Commission staff report dated October 9, 2023

3. Buffer maps (500-ft., 750-ft., 1,000-ft.)

4. Senate Bill 1186

5. Notice of Exemption No. 2023-46
Visalia City Council Page 12 of 12 Printed on 11/3/2023 powered by Legistar™854
ORDINANCE NO. 2023-13
ORDINANCE NO. 2023-13

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF VISALIA APPROVING ZONING TEXT AMENDMENT NO. 2023-02,
ADDING TO THE VISALIA MUNICIPAL CODE CHAPTER 5.66 (REGULATIONS AND

REQUIREMENTS FOR CANNABIS BUSINESSES PERMITTED TO OPERATE UNDER CALIFORNIA STATE LAW), AMENDING CHAPTER 8.64 (PUBLIC USE/CONSUMPTION OF MEDICAL MARIJUANA), AMENDING CHAPTER 17.25 (COMMERCIAL, MIXED USE, OFFICE, AND INDUSTRIAL ZONES USE MATRIX), AND ADDING SECTION 17.32.167 (DELIVERY

ONLY MEDICAL MARIJUANA RETAIL) IN ORDER TO ADDRESS UPCOMING STATE MANDATED CHANGES AS A RESULT OF THE PASSAGE OF SB 1186, THE “MEDICINAL CANNABIS PATIENTS’ RIGHT OF ACCESS ACT”, AND ESTABLISH OBJECTIVE

STANDARDS FOR PERMITTING DELIVERY ONLY MEDICAL MARIJUANA RETAIL ESTABLISHMENTS WITHIN THE CITY OF VISALIA.

BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF VISALIA:

Section 1. Findings. The City Council hereby finds the following in support of these municipal code additions and modifications:

A. In 1996 California voters approved Proposition 215, that legalized, under state not federal law, the possession and use of cannabis for medical purposes by individuals under designated circumstances; and
B. In 2016, California voters approved Proposition 64, the Adult Use of Marijuana Act, which established a system to legalize, control, and regulate the cultivation, processing, manufacture, distribution, testing, and sale of nonmedical marijuana. However, Proposition 64 expressly allowed local agencies, such as the City of Visalia to decide whether to allow commercial marijuana activities within the local agency jurisdiction; and C. In response to Proposition 64 and other state laws the City of Visalia approved ordinances that did not allow commercial cannabis activities, regardless of whether the cannabis was intended for medicinal or recreational use, City ordinances specifically allow an individual to use, possess limited quantities of, or cultivate marijuana (up to six plants) for personal use in compliance with state, not federal, law; and
D. In 2022, SB 1186, which becomes effective on January 1, 2024, the Medicinal Cannabis Patients’ Right of Access Act was signed into law, this statute decreases the prior allowances for local agency control over cannabis business by stating cities in California cannot adopt or enforce regulations that prohibit the retail sale by delivery of medicinal cannabis, although zoning and business license regulations of such businesses are allowed by state law; and
E. The City of Visalia has determined that reasonable zoning regulations, business licensing requirements, and modifications of current ordinances to comply with SB 1186 are necessary for the health, safety, and welfare of the citizens of Visalia.

F. Allowing delivery only (non-storefront) medicinal cannabis to be located in industrial zones, even with the proposed buffer zone, within the City of Visalia is consistent other types of delivery businesses and allows interested parties a large area within the City that is available for use, so the number of such sites is not restricted; and G. Not allowing this type of cannabis related business activity in commercial service zones avoids potential secondary impacts, such as encouraging youth smoking, drug use, 855
ORDINANCE NO. 2023-13
concerns over criminal activities from cannabis businesses, to other land uses that are more often located near commercial service zones compared to industrial zones, in addition the City Council finds that avoidance of these secondary impacts can be established by the requirement of a buffer zone between locations in industrial zoned areas and school sites within 500 feet; and
H. City Council finds that requiring delivery only medicinal cannabis businesses to be nonstorefront/delivery only, not cultivate marijuana onsite, provide a security plan, provide fencing, submit background inspections, submit to vehicle inspections, meet state mandated requirements for medicinal cannabis businesses, will also avoid potential secondary impacts, and provide for the safety and wellbeing of both the business applicant and surrounding community; and
I. City Council finds that parking and signage requirements are consistent with similar uses within the City; and
J. The Planning Commission of the City of Visalia, after duly published notice, held a public hearing before said Commission on October 9, 2023; and
K. The Planning Commission of the City of Visalia considered the Zone Text Amendment in accordance with Section 17.44.070 of the Zoning Ordinance of the City of Visalia and on the evidence contained in the staff report and testimony presented at the public hearing; and L. The City Council of the City of Visalia, after duly published notice, held a public hearing before said City Council on November 6, 2023, and introduced said Ordinance for first reading on that date.

M. The proposed Zoning Text Amendment is consistent with the intent of the General Plan, and Zoning Ordinance, and is not detrimental to the public health, safety, or welfare, or materially injurious to properties or improvements in the vicinity.

N. That the proposed Zoning Text Amendment is not inconsistent with any other Element of the General Plan.

O. The ordinance additions and modifications establish objective standards to adequately address operational standards for delivery only medical marijuana retail establishments, consistent with the stated goals of the City of Visalia General Plan and Zoning Ordinance to preserve and promote the public health, safety, and welfare of the city while also adhering to SB1186, which prohibits local agencies from enforcing any local regulations that prohibit the retail sale by delivery of medicinal cannabis.

Section 2. Business License Requirements for Delivery Only Medicinal Cannabis. Chapter

5.66, setting forth regulations and requirements for cannabis businesses permitted under state law, is hereby added to address upcoming state mandated changes as a result of the passage of SB 1186, and establish objective standards for permitting delivery only medical marijuana retail establishments within the City of Visalia. This new chapter is set forth in italics below:

Chapter 5.66 Regulations and Requirements for Cannabis Businesses Permitted to Operate Under California State Law

5.66.010 - Purpose and Intent.

It is the purpose of this chapter to permit and regulate delivery only medical marijuana retail businesses, which the City of Visalia has been mandated by the Medicinal Cannabis Patients’ 856
ORDINANCE NO. 2023-13
Right of Access Act, Senate Bill 1186, passed in 2022 to allow within city boundaries. These types of businesses will be permitted as provided herein. The provisions of this chapter have neither the purpose nor effect of imposing a limitation or restriction on the number of medicinal cannabis businesses authorized to deliver medicinal cannabis in the city, the operating hours of medicinal cannabis businesses, the number or frequency of sales by delivery of medicinal cannabis, the types or quantities of medicinal cannabis authorized to be sold by delivery, or the establishment of physical premises from which retail sale by delivery of medicinal cannabis within the city is conducted by a licensed non-storefront retailer.

5.66.020 – Definitions.

All definitions set forth in Health and Safety Code Sections 11362.5 and 11362.7 et seq. and Business and Professions Code Section 26001, as may be amended, including but not limited to the terms “person with an identification card”, “primary caregiver”, “qualified patient”, “customer,” “delivery,” “license,” “manufacture,” and “identification card” shall apply under this chapter in addition to the definitions set forth as follows:
“Commercial marijuana activity” shall mean the same as “commercial cannabis activity” under Business and Professions Code Section 26001(l), which includes the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery, or sale of marijuana and marijuana products as provided in Business and Professions Code Division 10, regulating the cultivation, distribution, transportation, storage, manufacturing, processing, and sale of marijuana and marijuana products for medical or non-medical purposes, but shall not refer specifically to “delivery only medical marijuana retail” as defined separately below or the deliveries of marijuana within Visalia when the sales, based on location of the seller, were made in jurisdictions that allow sales of cannabis by delivery and the delivery vehicles are in compliance with applicable state regulations and those of the permitting jurisdiction.
“Cultivation” means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of marijuana.
“Cultivation of medical marijuana” means the cultivation of marijuana for medical purposes as defined in strict accordance with California Health and Safety Code Sections 11362.5 and 11362.7 et seq.
“Delivery” means the commercial transfer of marijuana or marijuana products to a customer and includes the use of a retailer of any technology platform owned and controlled by the retailer.
“Delivery only medical marijuana retail” shall refer to a facility or location operated by a state licensed nonstorefront retailer possessing a current M-license and Type 9 license from CA Department of Cannabis Control where medical marijuana is made available, and/or distributed by method of delivery only, with no on-site customer services of any kind, to medicinal cannabis patients, as defined in Section 11362.7 of the Health and Safety Code, who possess a physician’s recommendation that complies with Article 25 (commencing with Section 2525) of Chapter 5 of Division 2, or a qualified patient or primary caregiver for a qualified patient issued a valid identification card pursuant to Section 11362.71 of the Health and Safety Code. “Marijuana” means all parts of the plant Cannabis sativa L., whether growing or not; the seeds thereof; the resin extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds or resin. It does not include industrial hemp as that term is defined in Health and Safety Code Section 11018.5 or the weight of any 857
ORDINANCE NO. 2023-13
other ingredient combined with marijuana to prepare topical or oral administrations, food, drink, or other product.
“Marijuana products” means marijuana that has undergone a process whereby the plant material has been transformed into a concentrate, including, but not limited to, concentrated cannabis, or an edible or topical product containing marijuana or concentrated cannabis and other ingredients.
“Medical Marijuana” means the use of marijuana for the purposes set forth in the Compassionate Use Act and the Medical Marijuana Program Act, which was adopted by California voters as Proposition 215 in 1996, found in California Health and Safety Code Sections 11362.5 and 11362.7 et seq.
“Private residence” means a house, an apartment unit, a mobile home, or similar dwelling. “Sell,” “sale,” and “to sell” includes any transaction whereby, for any consideration, title to cannabis or cannabis products is transferred from one person to another and includes the delivery of cannabis or cannabis products pursuant to an order placed for the purchase of the same and soliciting or receiving an order for the same.

5.66.030 – Application requirements
In addition to adhering to the general business license provisions as identified in Chapter 5.04, any applicant for a required city business license must also adhere to the following business regulations:

A. A site plan of the proposed business would be required. The site plan must meet the same requirements as other commercial or retail businesses within the City of Visalia under Chapter 17.28 of the Visalia Municipal Code and demonstrate compliance with Visalia Municipal Code 17.32.167.

B. Copies of the applicant’s current M-license and Type 9 license from the CA Department of Cannabis Control required.

C. The name and address of the owner and lessor of the real property upon or in which the business is to be operated. If the applicant is not the legal owner of the property, a notarized acknowledgment from the owner of the property that a delivery only medical marijuana retail business will be located on his or her property is required for each permit application.

D. Any person, association, partnership, or corporation desiring to operate a delivery only medical marijuana retail business, that will own five percent (5%) or more of the business or operate a delivery vehicle must submit an application to the chief of police for an investigation of the applicant's background and history. A fee to recover costs of the background check must accompany the submission of each application. An annual nonrefundable renewal fee may also be charged to defray associated costs of investigation, inspection, and enforcement.

1. Each applicant for a background check must submit the following information:
i. The full true name and any other names used by the applicant. ii. The present address and telephone number of the applicant. iii. Driver's license number and Social Security number. iv. The proposed address of the business.
858
ORDINANCE NO. 2023-13
v. Each residence and business address of the applicant for the three (3) years immediately preceding the date of the application, and the inclusive dates for such address.
vi. Written proof that the applicant is at least twenty-one (21) years of age. vii. Applicant's height, weight, and color of eyes and hair. viii. Two (2) photographs of the applicant at least two (2) inches by two (2) inches taken within four (4) months preceding the date of the application. ix. Applicant's business, occupation, and employment history for the five (5) years immediately preceding the date of application.
x. The business license or permit history of the applicant, including whether such applicant has ever had any license or permit issued by any agency or board, city, county, or state revoked or suspended.
xi. All criminal conviction of applicant, and a statement of the dates and places of such convictions.
xii. If the applicant is a corporation, the name of the corporation must be set forth exactly as shown in the articles of incorporation or charter, together with the state and date of incorporation and names and residence addresses of each of its current officers and directors, and each stockholder holding more than five percent (5%) of the stock of the corporation. If the applicant is a partnership, the application must set forth the name and residence address of each of the partners, including the limited partners. If the applicant is a limited partnership, it must furnish a copy of its certificate of limited partnership filed with the county clerk. If one (1) or more partners is a corporation, the provisions of this section pertaining to corporate applicants will apply. The applicant corporation or partnership must designate one (1) of its officers or general partners to act as its responsible managing officer.

Such person must complete and sign all application forms required of any individual applicant under this chapter, but only one (1) application fee will be charged.
xiii. The chief of police may require the applicant to furnish fingerprints when needed for the purpose of verifying identification.
xiv. Such other identification and information as may be required by the chief of police in order to verify the information to be included in the application. xv. The city is allowed a reasonable time, not to exceed sixty (60) days, in which to investigate the information on the application. During the investigation of the background information, a city representative including, without limitation, a member of the police department, fire department, building and safety division, planning division, or any authorized representative thereof, may inspect, with or without notice during regular business hours, the proposed place of business to determine whether it conforms to the requirements of this chapter and Chapter 17.32.167. Upon completion of the inspection, the city representative must inform the chief of police in writing of the findings of the inspection. Background clearance will be issued, within sixty (60) days of receipt of the application, to any applicant who has furnished all of the information required by this section in the application for such license, provided all of the following apply:

1. The applicant(s) has not made a materially false statement in the application;

2. The applicant, if an individual, or in the case of an applicant which is a corporation or partnership, any of its officers, directors, or holders of five percent (5%) or more of the corporation's stock, has not, within five (5) years immediately preceding the date of the filing of the 859
ORDINANCE NO. 2023-13
application been convicted in a court of competent jurisdiction of any of the following offenses:
a. Any offense relating to possession, cultivation, manufacture, sale, or distribution of a controlled substance, with the exception of cannabis related offenses when the cannabis was possessed, cultivated, manufactured, sold, or distributed in compliance with State and/or the relevant local jurisdiction, as applicable;
b. Any offense relating to possession, cultivation, manufacture, sale, or distribution of cannabis that is illegal under State and/or a local jurisdiction, as applicable;
c. Any offense involving the use of force or violence upon the person of another;
d. Any offense involving theft, fraud, dishonesty or deceit; e. Sales of cannabis to a minor or use of a minor to distribute cannabis;
f. Any offense relating to the physical or sexual abuse of a minor;
g. Any offense relating to a failure to collect (any portion of), report, timely report, and/or remit (any portion of) a cannabisrelated tax to the State or any other local jurisdiction.

3. The applicant(s) are at least twenty-one (21) years of age;

4. The applicant(s) has not had a CA Dept of Cannabis Control license revoked, not renewed, or suspended within seven (7) years immediately preceding the date of the filing of the application, unless the applicant(s) can show a material change in circumstances or that mitigating circumstances exist since the revocation or suspension.

E. A security plan reviewed and approved by the Visalia Police Department is required prior to the business being allowed to operate. See specific security plan requirements described in Chapter 5.66.050 of this ordinance.

F. Indemnification. The applicant or its legal representative shall:

1. Indemnify and hold the City harmless from any and all claims, damages, legal or enforcement actions, including, but not limited to, any actions or claims associated with violation of Federal law associated with the operation of the commercial cannabis activity; defend, at its sole expense, any action against the City, its agents, officers, and employees related to the approval of an entitlement for or the operation of the commercial cannabis activity; reimburse the City for any court costs and attorney fees that the City may be required to pay as a result of any legal challenge (or Federal enforcement action) related to the City’s approval of an entitlement for or the operation of the commercial cannabis activity.

2. Maintain commercial general liability and auto insurance in the amounts required by the California Department of Cannabis Control for a cannabis dispensary, provide the City of Visalia with proof of such insurance in a form acceptable to the City, and name the City as an additionally insured.

G. Before operating, the establishment’s owners must comply with all applicable codes adopted by the city, including, without limitation, the building, electrical, and plumbing codes.

5.66.050 - Security Plans
860
ORDINANCE NO. 2023-13
Security plans shall comply with the following minimum standards:

A. The applicant shall provide adequate security and lighting on site to ensure the safety of persons and protect the premises from theft at all times in conformance with the security plan submitted with the application.

B. Any security guards employed by the applicant shall be licensed and possess a valid Department of Consumer Affairs “Security Guard Card” at all times. The applicant’s security guards shall not possess firearms.

C. A video surveillance system, as approved by the Visalia Police Department, shall continuously surveil the building exterior, entrances and parking area of the site, as well as areas of the interior including product storage area but excepting any restroom(s), twentyfour (24) hours a day. Footage from such surveillance shall be retained for at least forty-five (45) days.

D. There shall be no sales of alcohol or tobacco products, and no on-site consumption of alcohol, tobacco products, or cannabis products by employees.

E. Entry into the premises by the general public is prohibited.

F. Community Relations Liaisons.

1. The applicant shall provide law enforcement with the name and phone number of an on-site community relations liaison to notify if there are operational problems with the establishment.

2. The applicant shall have a community relations liaison designated at all times, who shall be twenty-one (21) years of age or older.

3. The liaison shall be responsible for receiving and responding to all concerns and complaints made to the City regarding the cannabis business and for making a good faith attempt to promptly address all concerns and resolve all complaints.

4. The liaison shall respond by phone or e-mail within forty-eight (48) hours of any complaint(s) or concern(s) reported by a City official.

5. The liaison’s name and contact information shall be provided to the City Manager prior to operation of the business and within forty-eight (48) hours of a designation of a new liaison.

City Code compliance officers, Building Safety Inspectors, Police Department or Fire Department staff requesting admission for the purpose of determining compliance with this article shall be given unrestricted access and allowed entry during all business hours. These inspecting authorities shall also have unimpeded access to inspect all on-site locations, records, reports, documents, points of sale, product, surveillance footage, and any other access deemed necessary to ensure compliance with this chapter.

5.66.060 – Delivery Vehicles
A. Delivery vehicles must be inspected by City and obtain an operating permit prior to use and must meet all state requirements for cannabis delivery vehicles.

B. Vehicles used in the delivery process must be unmarked without any designation or logo that identifies the vehicle as a cannabis delivery vehicle.

C. Business shall obtain and maintain in full force and effect automotive liability insurance policy with appropriate coverage.
861
ORDINANCE NO. 2023-13
D. Business shall obtain and maintain in full force and effect at all times while an active city business license is in effect workers’ compensation insurance as required by law.

E. The amount of cannabis allowed in each delivery vehicle shall be in compliance with state law.

F. Owners are required to maintain compliance with all applicable CA Department of Cannabis Control regulations pertaining to delivery vehicles.

5.66.080 – Odor Control
A. The business is required to prevent the smell of marijuana from the business from being detected on adjacent private properties, the public right of way, or within any other unit located within the same building as the business. This requires an odor control plan to be prepared and submitted to the City for approval.

B. The odor control plan may include installation of an odor absorbing ventilation and exhaust system or any other equipment the city determines has the same or better effectiveness, such as:

1. An exhaust air filtration system with odor control that prevents internal odors from being emitted externally,

2. An air system that creates negative air pressure between the premises’ interior and exterior so that the odors generated inside the premises are not detectable outside the premises.

5.66.090 – Performance standards
All delivery only medical marijuana retail businesses shall meet the following ongoing performance standards:

A. Meet all requirements stated in Visalia Municipal Code Chapter 8.64.055.

B. The applicant shall have a responsible person on the premises to act as manager and supervise employees at all times during business hours.

C. A business shall not make a physical change, alteration, or modification of the permitted premises without the prior written approval of the City. If a permitted premises is to be changed, modified, or altered, the business is responsible for applying for and securing all necessary City approvals, project plan approvals, and permits.

D. Maintaining a valid M-license and Type 9 license in good standing from the CA Department of Cannabis Control required.

E. Continued adherence to the security plan.

F. The business shall comply with the provisions of state and local laws, including other city laws governing the regulation and/or prohibition of commercial cannabis businesses.

G. Entry into the premises by the general public is prohibited. All sales are to be made by delivery offsite only.

H. Effective implementation of the odor control plan.
862
ORDINANCE NO. 2023-13
I. All new employees, managers, or owners, prior to hiring, must submit to a comprehensive background check by the business. The business must ensure that each potential party meets similar standards to pass background check as stated in the Application Requirements in Chapter 5.66.030, subsection D.

1. A party should not have any offenses relating to:
i. Possession, cultivation, manufacture, sale, or distribution of a controlled substance, with the exception of cannabis related offenses when the cannabis was possessed, cultivated, manufactured, sold, or distributed in compliance with State and/or the relevant local jurisdiction, as applicable; ii. Possession, cultivation, manufacture, sale, or distribution of cannabis that is illegal under State and/or a local jurisdiction, as applicable; iii. Any offense involving the use of force or violence upon the person of another;
iv. Any offense involving theft, fraud, dishonesty or deceit; v. Sales of cannabis to a minor or use of a minor to distribute cannabis; vi. Any offense relating to the physical or sexual abuse of a minor; vii. Any offense relating to a failure to collect (any portion of), report, timely report, and/or remit (any portion of) a cannabis-related tax to the State or any other local jurisdiction.

2. For each potential party, before beginning employment, the business must collect a sworn affidavit attesting that a comprehensive background check was conducted in conformance with this chapter; and the potential party meets the standards to pass this background check.

5.66.100 – Public Nuisance Abatement
Any business operated, conducted or maintained contrary to the provisions of this chapter is unlawful and a public nuisance. The City is authorized, in addition to or in lieu of any other legal or criminal proceedings, to commence an action or proceeding for abatement, removal or enjoinment of such business in the manner provided by law. The City may seek a court order to grant such relief to abate or remove such business and restrain and enjoin any person from operating, conducting or maintaining such an establishment contrary to the provisions of this chapter.

5.66.110 Revocation.

A. Grounds for revocation. The City may revoke approvals issued to the business to operate in the city for one (1) or more of the following grounds:

1. Fraud or deceit. That the applicant practiced fraud or deceit in obtaining an approval to operate business in the city;

2. Violation of chapter. That the business owner, operator, or its employee violated a provision or provisions of this chapter;

3. Criminal conviction. That the business owner, operator, or its employee has been convicted in a court of competent jurisdiction of any offense described in this chapter;

4. Improperly maintained facilities. That the facilities and operations of the business are not kept in compliance with this chapter and that the owner or operator has failed to promptly remedy any deficiency of which they have been notified. For purposes of this subsection, "notice" means notice given personally, or by leaving notice at the business premises, or by first class mail, postage prepaid, to the address designated by the business in accordance with this chapter;

5. Error. That the approval was issued in error;
863
ORDINANCE NO. 2023-13

6. Civil penalties or administrative citations. Assessment of three (3) or more civil penalties or administrative citations as provided by this chapter during any six (6) month period; or

7. Prohibited conduct. A business owner, operator, or its employee has been found to have engaged in prohibited conduct in violation of this chapter.

8. Notice of revocation. Upon a determination on the grounds to revoke an approval under this chapter, the City must cause a notice of revocation to be mailed by first class, postage prepaid mail, to the address designated by the business pursuant to this chapter.

5.66.120 Enforcement and penalties.

A. Any person violating any provision of this chapter is liable in a civil action brought by the City for an amount up to $500 per violation. Such person is also liable for reasonable attorneys' fees and costs incurred by the city attorney in any civil proceeding filed to enforce this chapter.

Each day that a violation continues may be considered a new and subsequent offense.

B. Alternatively the city may choose to enforce violations through the administrative code enforcement process described in Chapter 1.13 of the Visalia Municipal Code, with violations being punishable with a $100 fine for the first violation, a $200 fine for the second violation, and a $500 fine for the third and subsequent violations. Each day that a violation continues may be considered a new and subsequent offense.

C. Enforcing this chapter through civil action may be filed as an alternative to criminal enforcement. Civil enforcement does not require the violation to be knowing or willful. A civil or administrative action cannot be filed if the person is being criminally prosecuted.

D. The City may settle any civil enforcement before or after to the filing of a civil action by imposing a civil penalty in an amount not exceeding the potential civil liability, including attorneys' fees, set forth in this section. If such civil penalty is paid in full, the City can agree not to file civil or criminal actions or, if action has already been filed, may dismiss such action.

Imposition of all civil penalties is public record.

5.66.130 Appeal.

After denial of an application for a business license, or after denial of renewal of a business license, or suspension or revocation of a business license, the applicant or person to whom the business license was granted may appeal the decision to the city manager, or designee, by filing a written notice with the city clerk within ten (10) business days from the receipt of the notice of denial. The city manager or representative shall hold a hearing on the appeal within thirty (30) business days from the receipt of the notice by the city clerk. The decision of the city manager, or designee, following the hearing shall be final and conclusive. There is no appeal to the City Council. If the denial, suspension, or revocation is affirmed on review the applicant or licensee may seek judicial review of such administrative action pursuant to California Code of Civil Procedure § 1094.8. The time for filing such action is governed by California Code of Civil Procedure § 1094.8.

Section 3. Modifications to Current Medical Marijuana Ordinances. The City Council hereby finds that amendments are required to current municipal codes regulating medical marijuana in order to comply with SB 1186. The following amendments are to be made to Visalia Municipal Code sections 8.64,010, 8.64.020, 8.64.050, with additional language in italics, deleted language in strikeout, and new section 8.64.055 shall be added:

8.64.010 Purpose and intent.
864
ORDINANCE NO. 2023-13
It is the purpose of this chapter to promote the health, safety, morals, general welfare and enjoyment of private property of the residents within the city by restricting the public use and consumption of marijuana; prohibiting, to the maximum extent permitted under the state law, the commercial cultivation, distribution, transportation, storage, manufacturing, processing, and sale of marijuana within the City of Visalia; and by regulating the individual cultivation of marijuana. This chapter is intended to prohibit these activities to the maximum extent possible by a local agency as authorized under the state law, specifically the Compassionate Use Act, Proposition 215, passed in 1996, and the Adult Use of Marijuana Act, Proposition 64, passed in 2016, and the Medicinal Cannabis Patients’ Right of Access Act, Senate Bill 1186, passed in 2022.

8.64.020 Definitions.
“Commercial marijuana activity” shall mean the same as “commercial cannabis activity” under Business and Professions Code Section 26001(k) 26001(l), which includes the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery, or sale of marijuana and marijuana products as provided in Business and Professions Code Division 10, regulating the cultivation, distribution, transportation, storage, manufacturing, processing, and sale of marijuana and marijuana products for medical or non-medical purposes, but shall not refer specifically to “delivery only medical marijuana retail” as defined separately below or the deliveries of marijuana within Visalia when the sales, based on location of the seller, were made in jurisdictions that allow sales of cannabis by delivery and the delivery vehicles are in compliance with applicable state regulations and those of the permitting jurisdiction.
“Delivery only medical marijuana retail” shall refer to a facility or location operated by a state licensed non-storefront retailer possessing a current M-license and Type 9 license from CA Department of Cannabis Control where medical marijuana is made available, and/or distributed by method of delivery only, with no on-site customer services of any kind, to medicinal cannabis patients, as defined in Section 11362.7 of the Health and Safety Code, who possess a physician’s recommendation that complies with Article 25 (commencing with Section 2525) of Chapter 5 of Division 2, or a qualified patient or primary caregiver for a qualified patient issued a valid identification card pursuant to Section 11362.71 of the Health and Safety Code.

8.64.050 Medical marijuana dispensaries and c Commercial marijuana activity prohibited.

A. A medical marijuana dispensary as defined in subsection B. of this section may not be established within the City of Visalia, and no permit of any type shall be issued therefor.

Notwithstanding Section 17.02.110 of the Visalia Municipal Code, in no event shall a medical marijuana dispensary as defined in subsection B. of this section be considered a permitted or conditionally permitted use in any land use zoning district. This section shall not affect the right to possess, use or cultivate marijuana for medicinal purposes as is presently authorized or prohibited by the laws of the State of California as set forth in the Health and Safety Code, Penal Code, or other state law, or by any federal law, provided such possession, use or cultivation otherwise complies with any applicable provisions of the Visalia Municipal Code.

B. A medical marijuana dispensary is any facility or location, whether fixed or mobile, where marijuana is cultivated, made available, and/or distributed by or to three or more persons within the following categories: a primary caregiver, a qualified patient, or a patient with an identification card, as those terms are defined in California Health and Safety Code Sections 11362.5 and 11362.7 et seq. as such sections may be amended from time to time.

A. Commercial marijuana activities are prohibited within the City of Visalia with the exception of:
865
ORDINANCE NO. 2023-13

1. Deliveries of marijuana within Visalia when the sales, based on location of the seller, were made in jurisdictions that allow sales of cannabis by delivery and the delivery vehicles are in compliance with applicable state regulations and those of the permitting jurisdiction.

2. Delivery only medical marijuana retail establishments that meet reasonable zoning restrictions and development and operational standards as identified in Chapter

8.64.055, Chapter 5.66 and Chapter 17.32.167.

B. Delivery of marijuana is prohibited within the city regardless of whether the delivery is initiated within or outside of the city, and regardless of whether a technology platform is used for delivery by a dispensary. This subsection does not apply to delivery services that are using public roads to travel through the City of Visalia as permitted under state law, although such delivery services must comply with all other state laws and local ordinances as applicable.

8.64.055 Delivery only medical marijuana retail.

A. As authorized by the Medicinal Cannabis Patients’ Right of Access Act, California Senate Bill 1186, passed in 2022, a delivery only medical marijuana retail dispensary as defined in subsection B., and developed and operated in accordance with the development and operational standards as defined in Chapter 5.66 and Chapter 17.32.167 may be established within the City of Visalia. This section shall not affect the right to possess, use or cultivate marijuana for medicinal purposes as is presently authorized or prohibited by the laws of the State of California as set forth in the Health and Safety Code, Penal Code, or other state law, or by any federal law, provided such possession, use or cultivation otherwise complies with any applicable provisions of the Visalia Municipal Code.

B. A delivery only medical marijuana retail dispensary is any facility or location operated by a state licensed non-storefront retailer possessing a current M-license and Type 9 license from CA Department of Cannabis Control where medical marijuana is made available, and/or distributed by method of delivery only, with no on-site customer services of any kind, to medicinal cannabis patients, as defined in Section 11362.7 of the Health and Safety Code, who possess a physician’s recommendation that complies with Article 25 (commencing with Section 2525) of Chapter 5 of Division 2, or a qualified patient or primary caregiver for a qualified patient issued a valid identification card pursuant to Section 11362.71 of the Health and Safety Code.

Section 4. Modifications to Visalia Municipal Code Chapter 17.25. Zoning Text Amendment No. 2023-02 a request by the City of Visalia to amend the table found in Visalia Municipal Code Chapter 17.25 (Commercial, Mixed Use, Office, and Industrial Zones Use Matrix) by adding a section for Delivery only medical marijuana retail is hereby approved:
866
ORDINANCE NO. 202
3-13
867
ORDINANCE NO. 202
3-13
868
ORDINANCE NO. 2023-13
Section 5. Regulations for Delivery Only Medical Marijuana Retail. Section 17.32.167, an ordinance to set forth regulations for delivery only medical marijuana retail businesses is hereby added to the Visalia Municipal Code. This municipal code section is included below and is in italics to note that it is a new code section:

17.32.167 Delivery only medical marijuana retail.

B. Zoning Restrictions:

1. Use is permitted in the Light Industrial (I-L) Zone and Industrial (I) Zone.

2. Marijuana cultivation is not permitted.

3. Delivery only medical marijuana retail businesses shall not be located:
869
ORDINANCE NO. 2023-13
Within five hundred (500) feet of any existing or planned public, private, or parochial schools, elementary schools, middle schools, or high schools located either inside or outside of the city limits.

C. Parking requirements
One parking space for each employee during the shift of maximum employment, plus one parking space for each vehicle used in conjunction with the use is required.

D. Fencing and/or security gates
A fence that is a minimum height of seven feet, subject to the standards for fencing in industrial zones defined in Section 17.36.070, along with gates to secure the business and prevent public access shall be required.

E. Signage
All signage is subject to the requirements as defined in Section 17.48.

F. Other Delivery only medical marijuana retail standards Delivery only medical marijuana retail establishments must also meet all requirements of Chapter 5.66 - Regulations and Requirements for Cannabis Businesses Permitted to Operate Under California State Law.

Section 6. CEQA. The project is exempt under the California Environmental Quality Act (CEQA) Guidelines section 15061(b)(3) (common sense exemption); and Section 7. Severability. If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this Ordinance, or its application to any person or circumstances, is for any reason held to be invalid or unenforceable, such invalidity or unenforceability shall not affect the validity or enforceability of the remaining sections, subsections, subdivision, paragraphs, sentences, clauses or phrases of this Ordinance, or its application to any other person or circumstance.

The City Council of the City of Visalia hereby declares that it would have adopted each section, subsection, subdivision, paragraph, sentence, clause, or phrase hereof, irrespective of the fact that any one or more other sections, subsections, subdivisions, paragraphs, sentences, clauses, or phrases hereof be declared invalid or unenforceable.

Section 8. Construction. The City Council intends this Ordinance to supplement, not to duplicate or contradict, applicable state and federal law and this Ordinance shall be construed in light of that intent.

Section 9. Effective Date. This Ordinance shall take effect thirty days after its adoption.

Section 10. Certification. The City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same to be published or posted according to law. 870

REPORT TO CITY OF VISALIA PLANNING COMMISSION
HEARING DATE: October 9, 2023
PROJECT PLANNER: Paul Bernal, Community Development Director, City Planner
Phone: (559) 713-4025
E-mail: [email protected]
SUBJECT: Zoning Text Amendment No. 2023-02: A request by the City of Visalia to amend Title 17 (Zoning) Chapter 17.25 Commercial, Mixed Use, Office, and Industrial Zones Use Matrix, and add Section 17.32.167 Delivery only medical marijuana retail.

STAFF RECOMMENDATION
Staff recommends that the Planning Commission adopt Resolution No. 2023-52, recommending that the City Council approve adoption of Zoning Text Amendment No. 2023-02, which amends Title 17, Chapter 17.25 Commercial, Mixed Use, Office, and Industrial Zones Use Matrix, and adds Section 17.32.167 Delivery only medical marijuana retail. This recommendation is based on the findings contained therein and summarized as follows:
 The Zoning Text Amendment is consistent with the goals, objectives, and policies of the City’s General Plan.
 The Zoning Text Amendment establishes objective standards to adequately address operational standards for delivery only medical marijuana retail establishments, consistent with the stated goals of the City of Visalia General Plan and Zoning Ordinance to preserve and promote the public health, safety, and welfare of the city while also adhering to CA Senate Bill (SB) 1186, the “Medicinal Cannabis Patients’ Right of Access Act”, which prohibits local agencies from enforcing any local regulations that prohibit the retail sale by delivery of medicinal cannabis.

RECOMMENDED MOTION
I move to recommend that the City Council approve Zoning Ordinance Text Amendment No. 2023-02 based on the findings and conditions in Resolution No. 2023-52.

REASON FOR ZONING TEXT AMENDMENT
Zoning Text Amendment (ZTA) No. 2023-02 is a city-initiated request to address imminent state mandated changes as a result of the passage of SB 1186, the “Medicinal Cannabis Patients’ Right of Access Act” which becomes effective on January 1, 2024. After this date, “delivery only” (i.e., delivery of medicinal cannabis) businesses will be permitted, subject to reasonable zoning regulations for public health and safety, within the City of Visalia. This means that warehousebased businesses could legally operate in the City of Visalia as long as they sold medicinal cannabis via delivery only (i.e., no retail store front). Further, SB 1186 also provides that “the act may be enforced by an action for writ of mandate brought by a medicinal cannabis patient or their primary caregiver, a medicinal cannabis business, the Attorney General, or any other party authorized by law.” The City’s current municipal code prohibits cannabis businesses from operating within the City of Visalia, and with the requirement to permit cannabis businesses that operate under SB 1186, Visalia has no zoning or operational standards established specific to this type of use. ZTA No. 2023-02 establishes objective standards for permitting this type of use within our jurisdiction.
871
On July 17, 2023, staff conducted a work session with City Council on this subject and gained authority to proceed with municipal code updates to Title 5 Business Regulations, Title 8 Health and Safety, and Title 17 Zoning. The zoning ordinance update is seeking to implement reasonable zoning regulations in response to SB 1186. Staff also reviewed specific proposed edits with Council and garnered feedback on those proposed edits (see the Council Staff Report in Exhibit “A”).

The proposed Zoning Ordinance changes are as follows:
 Amend Title 17, Chapter 17.25 Commercial, Mixed Use, Office, and Industrial Zones Use Matrix.
 Add Section 17.32.167 Special Provisions, “Delivery only Medical Marijuana Retail.

In addition to the zoning text amendment changes, additional amendments to Title 5 Business Regulations and Title 8 Health and Safety are also required to address SB 1186. Although changes to those portions of the municipal code are not within the purview of the Planning Commission, staff has opted to provide an overview of these changes to provide greater context for the Planning Commission’s benefit on all changes required to the municipal code to comply with SB 1186. The following are the municipal code amendments to Title’s 5 and 8 as drafted by staff that will be presented to the City Council for their consideration.

Visalia Municipal Code Amendments to Title 5 and Title 8 Edits The following proposed changes will be taken directly to City Council for authority to implement:
- Title 5 Business Regulations – Add Section 5.66 Regulations and Requirements for Cannabis Businesses Permitted to Operate Under California State Law.

Under this new section, the following standards under the purview of the Visalia Police Department are required:
 Security plans, including cameras will be required for the site and the Visalia Police Department will be required to review and approve the security plans prior to these businesses being allowed to operate. Video cameras of all entrances, product storage area, building exterior, and parking area will be required as part of the security plan.  A site plan of the proposed business will be required.  These businesses will be required to be closed to the public. Sales will only be permitted by delivery. This is also covered in new Section 8.64 as noted below.  Delivery vehicles will be inspected by City and obtain an operating permit prior to use and must meet all state requirements for cannabis delivery vehicles.  Background inspections of all owners and all drivers will be required for the business to operate.
 These businesses will be required to prevent the smell of marijuana from the business from being detected on adjacent private properties and the public right of way. This will require an odor control plan be prepared and submitted to the City for approval.

Title 8 Health and Safety – Amend Chapter 8.64 Public Use/Consumption of Medical Marijuana Staff will include modifications to portions of current municipal code Chapter 8.64 that broadly prohibit all commercial cannabis activities. This section will be revised to reflect state law mandating that delivery only businesses that sell medical marijuana will be a permitted use, subject to applicable zoning and operational requirements. This will also require the creation of new chapters on marijuana businesses to specify what is permitted and operational requirements and that states all other commercial cannabis activities remain prohibited. Amendments to this 872
section include revision to the purpose and intent of this section, updating definitions found in this section, updating which commercial cannabis activities are still prohibited in the City of Visalia and adding new section 8.64.055 to address the delivery only of medical marijuana retail.

BACKGROUND
SB 1186 states that, “(a) A local jurisdiction shall not adopt or enforce any regulation that prohibits the retail sale by delivery within the local jurisdiction of medicinal cannabis to medicinal cannabis patients or their primary caregivers, or that otherwise has the effect of prohibiting the retail sale by delivery within the local jurisdiction of medicinal cannabis to medicinal cannabis patients or their primary caregivers by licensed medicinal cannabis businesses in a timely and readily accessible manner, and in types and quantities that are sufficient to meet demand from medicinal cannabis patients within the local jurisdiction, including, but not limited to, regulation of any of the following that has the effect of prohibiting the retail sale by delivery of medicinal cannabis:
(1) The number of medicinal cannabis businesses authorized to deliver medicinal cannabis in the local jurisdiction.
(2) The operating hours of medicinal cannabis businesses. (3) The number or frequency of sales by delivery of medicinal cannabis. (4) The types or quantities of medicinal cannabis authorized to be sold by delivery. (5) The establishment of physical premises from which retail sale by delivery of medicinal cannabis within the jurisdiction is conducted by a licensed non-storefront retailer, except that this paragraph shall not be construed to require the establishment of additional physical premises in a local jurisdiction that allowed medicinal cannabis retail as of January 1, 2022, and in which at least one physical premises engaged in the retail sale of medicinal cannabis, whether storefront or delivery, is already established.” However, SB 1186 also states, “(b) Nothing in this chapter shall be construed to prohibit the adoption or enforcement of reasonable regulations on retail sale by delivery of medicinal cannabis, including, but not limited to, reasonable regulations related to:
(1) Zoning requirements that are not inconsistent with subdivision (a). If compliance with subdivision (a) would otherwise require a local jurisdiction to authorize a physical premises from which retail sale by delivery of medicinal cannabis within the jurisdiction is conducted, this paragraph shall not be construed to alter that requirement. (2) Security or public health and safety requirements.
(3) Licensing requirements.
(4) The imposition, collection, and remittance of any applicable state or local taxes upon retail sales occurring within the local jurisdiction.
(5) Regulations consistent with requirements or restrictions imposed on cannabis businesses by this division or regulations issued under this division. c) Nothing in this chapter shall be construed to limit or otherwise affect the ability of a local jurisdiction to adopt or enforce any regulations on commercial cannabis operations other than retail sale by delivery of medicinal cannabis in the local jurisdiction.” The City of Visalia Title 17 Zoning provides a precise and detailed plan for the use of land within the city, and more precisely works to achieve the policies and objectives of the General Plan.

Similarly, of the various chapters in Title 17 Zoning, Chapter 17.25 establishes the list of land uses that are permitted or conditionally permitted in the various zone districts within the City of Visalia. Chapter 17.32 Special Provisions has served as a chapter of the Zoning Ordinance to 873
address items which have not otherwise been explicitly address in specific zones but work to structure performance standards or operational standards for specific uses or within specified zones. Zoning Text Amendment (ZTA) No. 2023-02 is a city-initiated request to implement objective “delivery only medical marijuana retail operational standards” and identify which zone districts permit such use within the City of Visalia.

PROJECT EVALUATION
Based on the direction provided by City Council, staff analyzed suitably structured zoning standards. These standards, as outlined below, are crafted to preserve and promote the public health, safety, and welfare of the City while also adhering to Senate Bill (SB) 1186, the “Medicinal Cannabis Patients’ Right of Access Act.”
Proposed Amendments to Title 17 Zoning
Commercial, Mixed Use, Office, and Industrial Zones Use Matrix. (VMC Section 17.25.030):

1. Add new line M46, “Delivery only medical marijuana retail” to be permitted in Light Industrial (I-L) and Industrial (I) zones in accordance with Chapters 17.32.167, 5.66 and 8.64.

Based on staff’s analysis, staff recommends “Delivery only medical marijuana retail” uses be “Permitted” in both the Light Industrial and Industrial zones.

2. Amend lines M46 – M65 accordingly (see Zone Matrix chart below). 874
875
876
877
Delivery only medical marijuana retail. (Add Section 17.32.167):

SB 1186 allows for local agencies to pass “reasonable zoning restrictions” and development conditions requirements on such delivery businesses to meet security, public health, and safety requirements. The draft ordinance addresses direction provided to staff to implement reasonable zoning regulations in response to SB 1186. The new code section to be added to the Special Provisions chapter of the Zoning Ordinance is listed below:

New Section 17.32.167 for “Delivery only medical marijuana retail” zoning objective standards.

B. Zoning Restrictions:

1. Use is permitted in the Light Industrial (I-L) Zone and Industrial (I) Zone.

2. Marijuana cultivation is not permitted.

3. Delivery only medical marijuana retail businesses shall not be located:
i. Within five hundred (500) feet of any existing or planned public, private, or parochial schools, elementary schools, middle schools, or high schools located either inside or outside of the city limits.

1. As used in this section, “existing” means existing at the time the permit application is submitted. “Planned” means property designated on the general plan of the city for such use, or other official planning documents of the city, or property owned or leased by the city for such use.

C. Parking requirements

1. One parking space for each employee during the shift of maximum employment, plus one parking space for each vehicle used in conjunction with the use is required.

D. Fencing and/or security gates

1. A fence that is a minimum height of seven feet, subject to the standards for fencing in industrial zones defined in Section 17.36.070, along with gates to secure the business and prevent public access shall be required.

E. Signage

1. All signage is subject to the requirements as defined in Section 17.48.

F. Other Delivery only medical marijuana retail standards

1. Delivery only medical marijuana retail establishments must also meet all requirements of Chapter 5.66 - Regulations and Requirements for Cannabis Businesses Permitted to Operate Under California State Law.

Additional ‘buffer’ options:

Staff recommends that a 500 foot ‘buffer’ from sensitive uses be established as noted in Section

17.36.167.B.3.i. of the proposed ordinance. A buffer greater than 500-feet potentially limits the number of Light Industrial zoned sites which would otherwise be eligible for a delivery business.

Reducing the number of Light Industrial zoned properties could be construed as not meeting the intent of SB 1186 by limiting the number of eligible sites in the Light Industrial zone if a ‘buffer’ 878
greater than 500-feet was implemented (see attached 750 ft. and 1,000 ft. map exhibits).

Additionally, because onsite retail sales are prohibited, entry into these premises by the general public is not allowed, and safety plans are required per Title 5, Section 5.66, staff concludes typical concerns due to proximity to sensitive uses may not be as applicable.

Environmental Review:

Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. The proposed text amendment to establish objective standards for delivery only medical marijuana retail establishments will not have a significant effect on the environment.

RECOMMENDED FINDINGS

2. The Zoning Text Amendment establishes objective standards to adequately address operational standards for delivery only medical marijuana retail establishments, consistent with the stated goals of the City of Visalia General Plan and Zoning Ordinance to preserve and promote the public health, safety, and welfare of the city while also adhering to CA Senate Bill (SB) 1186, the “Medicinal Cannabis Patients’ Right of Access Act”, which prohibits local agencies from enforcing any local regulations that prohibit the retail sale by delivery of medicinal cannabis.

3. That the project is exempt from further review under the California Environmental Quality Act (CEQA) Guidelines section 15061(b)(3) (common sense exemption).

APPEAL INFORMATION
The Planning Commission’s recommendation on Zoning Ordinance Text Amendment No. 2023- 02 is advisory only and is automatically referred to the City Council for final action.

Attachments:
 Related Plans and Policies
 Resolution No. 2023-52 - Draft Ordinance Delivery only medical marijuana retail and Amendment to Chapter 17.25 Commercial, Mixed Use, Office, and Industrial Zones Use Matrix.
 Exhibit A – City Council Work Session Staff Report (July 17, 2023)  Buffer maps (500-ft., 750-ft., 1000-ft.)
 Senate Bill 1186
879

RELATED PLANS AND POLICIES
Chapter 17.44

ZONING AMENDMENTS
Sections:

17.44.010 Purpose.

17.44.020 Initiation.

17.44.030 Application procedures.

17.44.040 Public hearing—Notice.

17.44.050 Investigation and report.

17.44.060 Hearing.

17.44.070 Action of city planning commission.

17.44.090 Action of city council.

17.44.100 Change of zoning map.

17.44.110 New application.

17.44.120 Report by city planner.

17.44.010 Purpose.

As a general plan for Visalia is put into effect, there will be a need for changes in zoning boundaries and other regulations of this title. As the general plan is reviewed and revised periodically, other changes in the regulations of this title may be warranted. Such amendments shall be made in accordance with the procedure prescribed in this chapter.

17.44.020 Initiation.

A. A change in the boundaries of any zone may be initiated by the owner of the property within the area for which a change of zone is proposed or by his authorized agent. If the area for which a change of zone is proposed is in more than one ownership, all of the property owners or their authorized agents shall join in filing the application, unless included by planning commission resolution of intention.

B. A change in boundaries of any zone, or a change in a zone regulation, off-street parking or loading facilities requirements, general provision, exception or other provision may be initiated by the city planning commission or the city council in the form of a request to the commission that it consider a proposed change; provided, that in either case the procedure prescribed in Sections 17.44.040 and

17.44.090 shall be followed.

17.44.030 Application procedures.

A. A property owner or his authorized agent may file an application with the city planning commission for a change in zoning boundaries on a form prescribed by the commission and that said application shall include the following data:
880

1. Name and address of the applicant;

2. Statement that the applicant is the owner of the property for which the change in zoning boundaries is proposed, the authorized agent of the owner, or is or will be the plaintiff in an action in eminent domain to acquire the property involved;

3. Address and legal description of the property;

4. The application shall be accompanied by such sketches or drawings as may be necessary to clearly show the applicant's proposal;

5. Additional information as required by the historic preservation advisory board.

B. The application shall be accompanied by a fee set by resolution of the city council sufficient to cover the cost of processing the application.

17.44.040 Public hearing—Notice.

The city planning commission shall hold at least one public hearing on each application for a change in zone boundaries and on each proposal for a change in zone boundaries or of a zone regulation, off-street parking or loading facilities requirements, general provisions, exception or other provision of this title initiated by the commission or the city council. Notice of the public hearing shall be given not less than ten days or more than thirty (30) days prior to the date of the hearing by publication in a newspaper of general circulation within the city, and by mailing notice of the time and place of the hearing to property owners within three hundred (300) feet of the boundaries of the area occupied or to be occupied by the use that is the subject of the hearing.

17.44.050 Investigation and report.

The city planning staff shall make an investigation of the application or the proposal and shall prepare a report thereon that shall be submitted to the city planning commission.

17.44.060 Hearing.

A. At the public hearing, the city planning commission shall review the application or the proposal and may receive pertinent evidence as to why or how the proposed change is necessary to achieve the objectives of the zoning ordinance prescribed in Section 17.02.020.

B. If the commission's recommendation is to change property from one zone designation to another, the commission may recommend that conditions be imposed so as not to create problems adverse to the public health, safety and general welfare of the city and its residents.

17.44.070 Action of city planning commission.

The city planning commission shall make a specific finding as to whether the change is required to achieve the objectives of the zoning ordinance prescribed in Section 17.02.020. The commission shall transmit a report to the city council recommending that the application be granted, conditionally approved, or denied or that the proposal be adopted or rejected, together with one copy of the application, resolution of the commission or request of the Council, the sketches or drawings submitted and all other data filed therewith, the report of the city engineer and the findings of the commission.

17.44.080 [Reserved].

17.44.090 Action of city council.

A. Upon receipt of the resolution or report of the city planning commission, the city council shall review the application or the proposal and shall consider the resolution or report of the commission and the report of the city planning staff.
881
B. The city council shall make a specific finding as to whether the change is required to achieve the objectives of the zoning ordinance prescribed in Section 17.02.020. If the council finds that the change is required, it shall enact an ordinance amending the zoning map or an ordinance amending the regulations of this title, whichever is appropriate. The city council may impose conditions on the change of zone for the property where it finds that said conditions must be imposed so as not to create problems inimical to the public health, safety and general welfare of the city and its residents. If conditions are imposed on a change of zone, said conditions shall run with the land and shall not automatically be removed by a subsequent reclassification or change in ownership of the property. Said conditions may be removed only by the city council after recommendation by the planning commission. If the council finds that the change is not required, it shall deny the application or reject the proposal.

17.44.100 Change of zoning map.

A change in zone boundary shall be indicated on the zoning map.

17.44.110 New application.

Following the denial of an application for a change in a zone boundary, no application for the same or substantially the same change shall be filed within one year of the date of denial of the application.

17.44.120 Report by city planner.

On any amendment to the zoning code changing property from one zone classification to another, the city planner shall inform the planning commission and the city council of any conditions attached to previous zone changes as a result of action taken pursuant to Sections 17.44.060, 17.44.070 and 17.44.090. 882
883
884
885
886

#
$%$&&
'(!

!!)*
+$%,

#-
.#
)"

#
$%$&/

0#1#2#
3&
'(
) 452# 22!+
' 22#
2
! (
+ 6
#-

7#28
9**+
1 !7:;
1 +
+" *
7 +3<($&$$8=#6 !.#
)
"
+
+:
'"

" *
7 +3<($&$$8>
?@ABC?DEBF@GHIJC@?KCLBA@CE
"433<%(M# +8N !#
#67#2
#
2O#-)

'

8
P#2
#-6.(
)
*22#

Q2

'3%(##
#
#1 25+

!7:+
*
2#
#
$3

) R
1 7 +%(3%(2

.#! - +6
6 #
(!
6+ 2
)
#
2*5+*
2 #2(
-

) +
)#-2(

25+
)

2 +#
526:#666#'
+#2)1
) +#-)

7 #!52 +#S5'
+
!#
6*5+*
2 2(22*
#T !(! P *
2'+
2

+##66#7#6#
:

+
#*
#
2!
) #+*+#+:
+ -#1 +2.)
*
22 22
+
56 #1

+#S5'
+
) * +2
6 !#
6*5+*
2 2
'
) *
#
8P#2
#-6.(
U
.2
) N !#
6N+#S5+
-+( 2
76#2) 21
65
+:
+ -#2
+
#
*+
-+'
+V56#T ! !#
#6
7#2*
#
2!
) #+
*+#+:
+ -#1 +2
)+
5-)2

.#! #!
#T

#

+!2:2
#
# !
7:
) "

0 *+

'576#
6
)!2
2'
+
)-5#! 6# 2'
+
)
*
22 22#

' !#
#6
7#28
)

+
6( -56
!P!56
WQ2
'N+#S5

'$&3%
,QN/(##
#
#1 25+ **+
1 !2+
*
2#
#
%X

) R
1 7 +
<($&3%(2

.#! - +6 6

#
( 2
76#2) !

*+ ) 2#1 2:2

6 -6#Y (

+
6(!+ -56

)
56 #1
#
(*+

22#-(5'

5+ (
!#2
+#75
#
(
2 #-(!26
'
!#
6+#S58QN+ 2 +1 !

6S5+#2!#

#
2*
#T !*
. +2+ -+!#-

+
#6!56
W52
7#2

#1#
:(#
65!#-!
*
#-! '
+
#-6

6
+!#
2+ -56
#-

+
#6!56
W52
7#2

#1#
:8P#2
#-6.(
) N !#
#6!
!56
WQ2 7#2 -56
#
!"'
:

,NQ"/(
-

) +

)#-2(

2
6#!
2
) 6#
25+ !+ -56
#

'

+
#6 !#
#6
!!56
W52
7#2

#1#
# 2(#
65!#-
) +
#626
' !#
#6

7#28
)#27#66.
56!

) N !#
#67#2
#
2O#-)

'

(.)#
)(
!'
+Z5+:3($&$X(.
56!*+
)#7#
6

6S5+#2!#

#

'+
!
*
#-
+ '
+
#-:+ -56
#

)
*+
)#7#
2
) +
#626 7:
! 6#1 +:.#
)#
) 6

6S5+#2!#

#

' !#
#6
7#2

!#
#6

7#2*
#
2
+
) #+*+#+:
+ -#1 +27: !#
#6
7#2
752# 22 2(2! T !(
+
)
)2
) ''

'*+
)#7#
#-
) +
#626 7:
! 6#1 +:.#
)#
) 6

6S5+#2!#

#

' !#
#6
7#2

!#
#6

7#2*
#
2
+
) #+*+#+:
+ -#1 +2#
# 6:!+ !#6:

&
[\]\^_`a]bc`_dec]
fghijkhlmfhjn jojmhpqklmojrfosfhjplfo
887

!
%

&

(

)

"'

!

)

)

,
!

)

%

./0102130245/06575024873942:;97<20;7=57>42332?>@ %A)BCD
%

&

(

)

FGF
GA*

-

)

(

H
I!
""
F)

&F

!
%

&J

!

$

!

F
GA*

-

)

(

HI!

""
F)

&F

!
%

&J

*

!

$

!

!

$

FG"

$

!!

K

&

!

!

L

OPQRST MNM

888

!"
!

!

!
"
!

#

$
$%&"$
$'

"

$
$'
& (
!
!

"
!"
!

!

!
!

!

!

!
!

! )

!"

! )
"
!"

"
*

!

$
+

!
"

!
!
-

!

"

"

"
!

.
/
+0

$

"

1
/

!

+

2
/
!

3
/

"
!

"

4
!

)

5

"

!!

"

!

"

+
!

!

!

"
!

$6

6

+
!0

!

!

+
!
0

, !*

!

7
>;> 89:;<=

889

!
"

#$

%

&'

!
"

()$$

,
*
-

"

((#'$'

!

"

/

0

1

"

&&)(

3

"

4

!

0

!

(

"

)$'

"8
&'
"

()($$

9

()($$

:
=

>

0 0

()

!
"

()($

;

!

4

(

:
=
>

0 0

()

!
"

()($

;

ABC
DEF
?
@
?

890

!
"#

$
%

'"#%#

(

)

*#*%+,*#*-##

*#*-#,
.

&
$

/

0

*

*
%

3

4

8#
?>? 9:;<=>

891

"

!

#
$
%

"

$

"
&

' "

#

#
$

(

#

')*

+
( '

#

'

"

#

+ ,
#

"

$
"

"

,
# "
-
.,
#/

#0

"

)+
+

"

2

"

,

"
#

,#
#

(

#

" $"

"

"

"

"

"

"

"

1

3
#(

1
*

)

#

- *
1

3
#(

#

1

3
#(

1
"

"

"

$

1

3
#
(

1

)
789:;< 565

892

!

"#

$
$

%

&

&&'('

)

+
,

-
&

./.0

1 $

(/0.

2$($
(

('(/

3
&/

-
56789:;(<:=>?>@7A57@@7B>CD79>:@9CEF>G69HIJ??:CCJ?9 ('(/

1

K

#

1

$

('(&

+

L

$
4

MN

-
&PL

Q

K
&

(//&
R/
YZY STUVWX

893

"
!

#

$$%
&'

#
(")

) +

) #

,,(

,-
"

#

$$%
&$'

#
(

./

%

+

)

"
)

)

0

"

"

"

)

1
$2

)

)
0

)

$"
5"

)

")

"

"

"

1
$7

)

8

)

)
)

)

)
0

"

9

.2

"

)

:5
=>?@AB ;<;

894

!"#$#%
#&'#'

(

#

)

!$*%

+

'

(

(

+

"

,

)

!$*&

(

(

+
-
!.

0

%.

(

#

)

!$*%

+

'

(

(

+

!"#$#%
#&'#%

)

#&#$$
#&'#

)

(

)6(')

)

#&#$$

7

+

(

. 7
##!$

!"
#$#'"#

)

#&#$$

7

+

(
"
'

. 7
##!$"

)

)6(%5

(

)

+

9

)

!9$$

0

(

;
<$
CAC =>?@AB

895
896

CITY OF VISALIA

CITY COUNCIL
November 6, 2023
Item I: Ordinance No. 2023-13
897
• A request by the City of Visalia to add Chapter

5.66, amend Chapter 8.64, add Section

17.32.167, and amend 17.25.
• Proposed ordinance additions/amendments to
address state mandates under SB 1186.
• Staff recommends that the City Council hold a
public hearing and introduce the first reading
of Ordinance No. 2023-13.

Ordinance No. 2023-13
Zoning Text Amendment No. 2023-02:
898
On July 17, 2023, staff conducted a work
session with City Council on this subject and
gained authority to proceed with municipal code
updates to Title 5 Business Regulations, Title 8
Health and Safety, and Title 17 Zoning. This
zoning ordinance update is seeking to implement
reasonable zoning regulations in response to SB
1186.

JULY 17, 2023 CITY COUNCIL MEETING
899
SB 1186
The “Medicinal Cannabis Patients’ Right of
Access Act”
- Signed into CA law in late 2022
- Effective on January 1, 2024
- Prohibits local agencies from enforcing any
local regulations prohibiting the retail sale
by delivery of medicinal cannabis
- “Delivery only” retail businesses will be
permitted, subject to reasonable zoning
regulations for public health and safety,
within the City of Visalia 900
SB 1186 ORDINANCE IMPLICATIONS

1. Update Zoning Matrix in Chapter 17.25.

2. Add Section 17.32.167 to Special
Provisions chapter, to establish reasonable
zoning regulations for the new delivery
only medical marijuana retail use.

3. Modify Chapter 8.64 that broadly prohibit
all commercial cannabis activities.

4. Add Chapter 5.66 to establish business
regulations for this use.
901
• Title 5: Add Chapter 5.66 - “Regulations and
Requirements for Cannabis Businesses
Permitted to Operate Under California State
Law”.
• Title 8: amend Chapter 8.64 - “Public
Use/Consumption of Medical Marijuana”
• Title 17: amend Chapter 17.25 - Commercial,
Mixed Use, Office, and Industrial Zones Use
Matrix, and add Section 17.32.167 - Delivery
only medical marijuana retail
PROPOSED VMC UPDATES:
902
TITLE 5: BUSINESS REGULATIONS
Add Section 5.66 “Regulations & Requirements
for Cannabis Businesses Permitted to Operate
Under California State Law”.
• Under this new section, the following
standards under the purview of the Visalia
Police Department are required:
- Security plans and site plans required
- Closed to the public
- Delivery vehicles will be inspected by City and obtain an operating permit
- Background inspections of all owners and all drivers required - Odor control plans 903
TITLE 5: BUSINESS REGULATIONS
Additionally in new Section 5.66:
- Maintaining a valid M-license (medicinal
designation) and Type 9 license (nonstorefront retailer, delivery only) - Entry into the premises by the general public
is prohibited
- Background checks required for all new
employees, managers, or owners, prior to
hiring
- Must meet all requirements stated in Chapter

8.64.055 904
TITLE 8: HEALTH AND SAFETY
Amend Chapter 8.64 “Public Use/Consumption
of Medical Marijuana”.
- Indicate what is permitted and what remains
prohibited within the City.
- Add Section 8.64.055 to address the delivery
only of medical marijuana retail specifically.
- Also clarifies deliveries of marijuana into
Visalia from sellers based in jurisdictions
that allows sales of marijuana are permitted.
905
TITLE 17: ZONING
Amend Zoning
Code matrix in
Chapter 17.25.

Staff recommends
permitting this use
by right in the
Light Industrial and
Industrial zones.
906
TITLE 17: ZONING
Add Section 17.32.167 to Special Provisions:
- Permitted in the I and I-L zones
- Cultivation not permitted onsite
- Parking for all employees & delivery vehicles
- Security gates to prevent public access required in
addition to fencing standards
- Signage subject to typical standards
- Must also meet all requirements of Chapter 5.66
- Not permitted within 500-ft. of any schools
located inside or outside the City
907
908
909
910

ENVIRONMENTAL REVIEW
The requested action is considered exempt
under Section 15061(b)(3), Per Section
15061(b)(3) of the State Guidelines for the
California Environmental Quality Act (CEQA).

A Notice of Exemption has been prepared for
the project because Section 15061 (b) (3)
states that the project is exempted from
CEQA if the activity is covered by the common
sense exemption.
911
On October 9, 2023, the Planning Commission
adopted Resolution No. 2023-52 recommending
that the City Council approve adoption of ZTA
No. 2023-02 related to revisions to Title 17.

PLANNING COMMISSION MEETING
912
Staff recommends that the City Council hold a
public hearing and introduce the first reading of
Ordinance No. 2023-13 for Zoning Text
Amendment No. 2023-02.

STAFF RECOMMENDATION
913
QUESTIONS?
914
Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 23-0411 Agenda Date: 11/6/2023 Agenda #: 1.

Agenda Item Wording:

For the purposes of reporting out, for the record, transactions that occurred as a result of Closed Session Real Property Negotiations:

Buyer: City of Visalia
Seller: Olive Farms Associates, LLC, a Washington Limited Liability Company APN: 123-080-032 & 123-080-033
Purpose: Storm Basin & Riparian Set Back
Brief Description: Willow Springs Development
Price: $347,614.10
Closing Date: 10/6/2022
Project Manager: Adrian Rubalcaba
For the purposes of reporting out, for the record, transactions that occurred as a result of Closed Session Real Property Negotiations:

Buyer: City of Visalia
Seller: Kaweah Delta Health Care District
APN: 126-130-030 (portion)
Purpose: Caldwell Widening Project
Price: $23,779.89
Closing Date: 10/24/2023
Closed Session Council Date: 6/5/2023
Project Manager: Eric Bons
Visalia City Council Page 1 of 1 Printed on 11/3/2023
powered by Legistar™915
Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 23-0427 Agenda Date: 11/6/2023 Agenda #: 1.

Agenda Item Wording:

Upcoming City Council Meetings:

Monday, November 20, 2023 at 7:00 p.m. @ 707 W. Acequia Monday, December 04, 2023 at 7:00 p.m. @ 707 W. Acequia If you have a disability and require a reasonable accommodation to fully participate in the meeting, please contact Michelle Nicholson, on or before Monday, November 6, 2023 to discuss your accessibility needs: 559-713-4512 or email at [email protected].

Visalia City Council Page 1 of 1 Printed on 11/3/2023
powered by Legistar™916

Visalia City CouncilNovember 6, 2023

Visalia City Council
November 6, 2023