Agenda packet — Visalia City Council, March 3, 2025 (part 1 of 2)

Visalia City Council
707 W. Acequia
Visalia, CA 93291
Visalia City Council
Visalia City Council
Meeting Agenda
Mayor Brett Taylor
Vice Mayor Liz Wynn
Council Member Steve Nelsen
Council Member Emmanuel Hernandez Soto
Council Member Brian Poochigian
City Council Chambers7:00 PMMonday, March 3, 2025

ROLL CALL
CALL TO ORDER WORK SESSION - 4:00 PM (Unless otherwise noted)

PUBLIC COMMENTS
Citizens are now invited to comment on issues within the jurisdiction of the Visalia City Council and items listed on the Closed Session agenda. The Council asks that you keep your comments concise and positive. Creative criticism, presented with appropriate courtesy, is welcome. Each speaker will be allowed three minutes, and a timer will notify you when your time is expired. Please begin your comments by stating and spelling your name and providing your city of residence.

WORK SESSION AND ACTION ITEMS (as described)

1. Transit Division Presentation 24-0562

2. Award a Contract for Farm Management Services - Award a contract to A&K Precision Management for Farm Management Services in the amount not to exceed $ 1.5 million per year to manage a total of 445 acres of pecan orchards surrounding the Water Reclamation Facility (WRF). The initial contract shall be for a twelve (12) month period and shall, at the City's option and upon mutually agreeable terms, be renewable annually thereafter for four (4) consecutive one-year periods.
24-0533

3. Cannabis Business Update - Provide staff direction on potential next steps pertaining to the authorization of Cannabis Businesses in the City of Visalia and depending upon the option selected, amend the contract, and appropriate $ 5,000 from the General Fund.
25-0018
ADJOURN TO CLOSED SESSION - 6:00 PM (Or, immediately following Work Session)

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1 Visalia City Council Meeting Agenda March 3, 2025
CALL TO ORDER REGULAR SESSION - 7:00 PM

PLEDGE OF ALLEGIANCE
INVOCATION LED BY SR. PASTOR UNRAU, PARKSIDE CHAPEL

SPECIAL PRESENTATION / RECOGNITION

PUBLIC COMMENTS
This is the time for general public comment on issues within the jurisdiction of the Visalia City Council. Each speaker tonight may speak for up to 3 minutes during this general comment period on a matter that is not on this agenda.

The public may also make one comment for up to 3 minutes prior to the consideration of the Consent Calendar, and immediately before any regular agenda item is heard. The Council asks that you keep you comments concise and positive. Creative criticism, presented with appropriate courtesy, is welcome.

Each speaker will be allowed three minutes and a timer will notify you when your time is expired. Please begin your comments by stating and spelling your name and providing your city of residence.

ITEMS OF INTEREST

CONSENT CALENDAR
Consent Calendar items are considered routine and will be enacted in one motion.

This is the time for members of the public to provide public comment on an item on the Consent Calendar. Comments will not be taken individually by the public if an item is pulled by a Council Member. Each speaker is allowed up to 3 minutes, and a timer will notify you when your time is expired. Please begin your comments by stating and spelling you name and providing your city of residence.

1. Authorization to read ordinances by title only. 24-0596

2. Amendment to Construction Management Contract - Authorize the City Manager to approve the Contract Amendment with NV5, Inc. in the amount of $226,491.50 for additional construction management services related to the Downtown Street Lighting Project. 24-0601

3. Water Conservation - Stage 2 - Consider reauthorization of Stage 2 of the Visalia Water Conservation Ordinance and adopt Resolution 2025-06.
24-0611

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2 Visalia City Council Meeting Agenda March 3, 2025

4. Valley Strong Stadium Batting Cage Contract - Accept the construction proposal for phase 2, task 1 - batting cage & related site work by the design-builder, 4CGlobal, Inc. dba 4Creeks Build for a lump sum amount of $1,867,198.84.
25-0002

5. Award of Contract for Security Services - Authorize the City Manager to enter into a contract for security services for Transit, Parks and Facilities, and the Convention Center to Val Security Incorporated, for an initial term of one ( 1) year with four ( 4) one-year extensions at the option of the City not to exceed $470,000 in year one with allowances for annual CPI increases in years 2 through 5.
25-0010

6. Notice of Completion - Authorize the filing of a Notice of Completion for the Orchard Removal Project at the East Side Regional Park.
25-0011

7. Park Project Notice of Completion - Request authorization to file a Notice of Completion for the Blain Park Retaining Wall
Replacement Project, 3101 S. Court St, Visalia, CA. (Project No . 1010-72000/CP0530-999).
25-0020

8. Park Project Notice of Completion - Request authorization to file a Notice of Completion for the resurface basketball courts at Village Park, 315 Pearl St, Visalia, CA.
25-0028

9. Southern California Edison Easement on City Owned Property - Adopt Resolution No. 2025-12 authorizing the grant of easement to Southern California Edison Company to construct and maintain electrical facilities on a portion of city-owned property and authorizing the City Manager to execute the grant of easement, subject to City Attorney’s approval as to form.
25-0035

10. Approve Services Contract - Authorize the City Manager to execute a contract with Precision Concrete Cutting for an amount not to exceed $ 500,000 for surveying and concrete shaving purposes, attaching to the Purchasing Cooperative of America Contract #PCA OD-311-20 and appropriate $500,000 from Risk Fund.
25-0042

11. Citizens Advisory Committee Appointment - Approve the Citizens Advisory Committee’s recommendation to appoint Jennifer Fawkes and Lacey Todd to fill vacant voting positions on the Citizens Advisory Committee.
25-0043

REGULAR ITEMS AND PUBLIC HEARINGS

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3 Visalia City Council Meeting Agenda March 3, 2025
Comments related to regular Items and Public Hearing Items are limited to three minutes per speaker, for a maximum of 30 minutes per item. The Mayor may reasonably limit or extend the public comment period to preserve the Council's interest in conducting efficient, orderly meetings.

1. Microtransit Fare - Public Hearing and Adoption of Resolution No . 2025-05 to authorize a proposed new microtransit service fare be included in the City ’s Rates and Fees Schedule for Fiscal Year 2024-25 and 2025-26.
24-0432

2. Recommendation to withdraw and re-notice to March 17 Shirk-Riggin Industrial Project consideration - the development of an industrial park with a total building footprint of approximately 3,720,149 square feet on 284 acres, and consisting of the following actions:
· Certification of a Final Environmental Impact Report (EIR) (State Clearinghouse #2022080658): A request to certify the Environmental Impact Report for the Shirk Riggin Industrial Project (“Project”). The City of Visalia is the lead agency in accordance with the California Environmental Quality Act (CEQA).
· Initiation of Proceedings for Annexation No. 2024-03: A request to annex three parcels totaling approximately 284 acres into the City limits of Visalia. Upon annexation the area will be zoned Industrial (I) and I-L (Light Industrial) consistent with the land use designations of the Visalia General Plan Land Use Map.
· General Plan Amendment No. 2025-01: A request to decrease the Light Industrial land use designation and to increase the Industrial land use designation on the project site consisting of approximately 284 acres.
· Introduction and First Reading of an Ordinance for adoption of a Development Agreement for the Shirk & Riggin Industrial Park: A request to authorize the City to sign and enter into a development agreement pursuant to Government Code Section 65864 et. seq ., and Section 17.60 of the City of Visalia Zoning Ordinance.

Project Applicant: Seefried Industrial Properties, Inc.

Project Location: The proposed Project is located on approximately 284 acres, on the north side of Riggin Avenue between Shirk Street and Kelsey Street. (APN:077-840-004, 005, 006)
25-0055

CLOSED SESSION REPORT

ADJOURNMENT

UPCOMING CITY COUNCIL MEETINGS

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4 Visalia City Council Meeting Agenda March 3, 2025

1. Upcoming City Council Meetings
Monday, March 17, 2025 @ 7:00 p.m. at 707 W. Acequia
Thursday, April 3, 2025, @ 5:30 p.m. Joint Meeting with VUSD & COS at Visalia Charter Independent Study (VCIS) at 424 N. Lovers Ln.

Note: Meeting dates and times are subject to change, check posted agenda for correct details. In compliance with the American Disabilities Act, if you need special assistance to participate in meetings contact 713-4512.

Written materials relating to an item on this agenda submitted to the Council after distribution of the agenda are available for public inspection in the Office of the City Clerk, 220 N. Santa Fe Street, Visalia CA 93292, during normal business hours.
24-0595

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5 Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 24-0562 Agenda Date: 3/3/2025 Agenda #: 1.

Agenda Item Wording:

Transit Division Presentation
Deadline for Action: 3/3/2025
Submitting Department: Administration
Contact Name and Phone Number: Angelina DeRossett, Transit Manager, [email protected] (559)713-4591; John Lollis, Assistant City Manager, [email protected], (559)713-4323
Department Recommendation:

It is recommended that the City Council receive a status update on the Transit Division and review the status of current and planned future projects.

Background Discussion:

Staff has prepared a presentation to review the current status of Transit Division operations and Transit-related projects.

The Transit Division consists of ten (10) staff, including the Transit Manager, Financial Analyst, Management Analyst, Senior Administrative Assistant, Senior Accounting Assistant, Community Outreach Coordinator, two (2) Office Assistants, Senior Building Maintenance Technician and a part- time Building Maintenance Worker.

Visalia Transit services include thirteen (13) Fixed Routes (serving Visalia, Exeter, Farmersville and unincorporated Goshen), Dial-a-Ride (DAR) paratransit service, V-LINE commuter service to Fresno, and the Sequoia Shuttle services that operate to and within the Sequoia and Kings Canyon National Parks. Operational hours are generally 6:00 A.M. to 9:30 P.M. on weekdays and 8:00 A.M. to 6:30 P.M. on weekends. The V-LINE operates 4:00 A.M. to 9:15 P.M. both weekdays and weekends.

With respect to fares, a general individual one-way fare for Fixed Route is $1.75, $10 for the V-LINE, and $20 round trip for the Sequoia Gateway shuttle. There are senior and ADA discounts for the Fixed Route and DAR services.

Visalia Transit operates a total of eighty-seven (87) vehicles, including a combination of CNG, electric, and gasoline-powered vehicles in varying lengths. It should be noted than even (7) of the eleven (11) electric buses in the fleet were manufactured by Proterra and are currently non- operational, which the repair and renewed operation has been significantly challenged due to Proterra having declared bankruptcy in August 2023 and its transit bus business having been acquired by Phoenix Motor in March 2024.

Visalia City Council Printed on 2/28/2025Page 1 of 3
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6 File #: 24-0562 Agenda Date: 3/3/2025 Agenda #: 1.

The 2024 calendar year saw moderate improvement in Fixed Route ridership in comparison to the 2023 calendar year, however, ridership remains approximately half of the ridership in 2019 prior to the COVID-19 pandemic beginning in 2020. Both the SEKI Gateway Shuttle and Internal Shuttle both saw near record number of users in 2024.

Visalia Transit participates in multiple county-wide collaborations, including Amtrak, CalVans, Greyhound, Kings Area Rural Transit (KART) and Tulare County Regional Transit Agency (TCRTA).

There are and have been major Transit projects over the past year, with one of the most significant being the Maintenance and Operations Contractor turnover from Transdev to RATP Dev USA in Summer 2024 with an effective date of October 1, 2024.

Transit is embarking on the launch of the new microtransit pilot service, financed by the Tulare County Association of Governments (TCAG) for two (2) years with State Senate Bill 125 transit funds.

Staff is requesting the approval of the rates and fees process for the $5 flat rate fare during a public hearing scheduled for the City Council meeting of March 3, 2025 (tonight).

Transit has also been approached by TCAG to serve as the primary provider for the region’s planned Cross Valley Corridor phased express bus service between Porterville to the east, Naval Air Station Lemoore to the west, and Tulare to the south, which are mandated environmental mitigation measure for the region due to induced traffic demand associated with the widening of State Route 99 in Tulare County. The development of a new transfer station in the Industrial Park in collaboration with CalVans is being contemplated, as well as the development of hydrogen generation at the City’s Wastewater Treatment Facility to serve the implementation of zero-emission hydrogen fuel cell heavy duty vehicles.

Building on the Cross Valley Corridor, Downtown Visalia and the Transit Center serve as the central hub of the region’s service area between Kings and Tulare counties, including essential medical, civic and educational services. The Transit Division is evaluating grant funding opportunities to enhance the ease of pedestrian access between the Transit Center and the essential service offerings in the Downtown area.

Fiscal Impact:

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

No motion required.

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

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Transit Division Presentation
Visalia City Council Printed on 2/28/2025Page 3 of 3
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8 AS2
9 Slide 1
AS2 Angelina Soper, 7/9/2021
10 John Lollis, Assistant
City Manager
Angelina DeRossett,
Transit Manager
Caleb Bowman, Transit
Management Analyst
Jasmine Carrillo Office
Assistant
RATP Dev Maintenance
and Operations
Contractor
Marla Bermudez,
Community Outreach
Coordinator
Laura Vermillion Senior
Administrative
Assistant
Carmen Quevedo,
Financial Analyst
Rosemary Amodo
Senior Accounting
Assistant
Esmeralda Chavez
Office Assistant
Robert Shane Senior
Building Maintenance
Technician
11 Visalia Transit Services
 Fixed Route
 Dial-A-Ride
 V-LINE
 Sequoia Shuttle
12 13
Visalia Transit Operational Hours
Weekday Service
 Fixed Route
 6:00 AM – 9:00 PM (Last Departure)
 Dial-A-Ride
 6:00 AM – 9:00 PM (Last Departure)
 V-LINE
 4:00 AM – 9:15 PM (returns to VT)
 Microtransit
 6:00 AM – 9:00 PM (Last Departure)
Weekend Service
 Fixed Route
 8:00 AM – 6:00 PM (Last Departure)
 Dial-A-Ride
 8:00 AM – 6:00 PM (Last Departure)
 V-LINE
 4:00 AM – 9:15 PM (returns to VT)
 Microtransit
 8:00 AM – 6:00 PM (Last Departure)
14 Mobile App Text-to-Track
 Take Visalia Transit with you,
wherever you go. Download
our mobile app for real-time
bus tracking, schedules,
maps, stop alerts, bus arrival
notifications, service
announcements, and more.
 When waiting at any Visalia
Transit stop, you can get the
exact location and arrival time
for the next bus sent directly to
your phone. Simply text
“VTBUS” followed by a space
and your stop ID listed on the
sign at your bus stop to
41411.
15 Visalia Transit Fares
 General one way $1.75
 ADA/Disabled/Senior/Military $0.85
 General Day Pass $3.50
 ADA/Disabled/Senior/Military day pass $2.50
 General 7-Day pass $14.00
 ADA/Disabled/Senior/Military 7-Day pass $7.50
 General 31-Day pass $50.00
 ADA/Disabled/Senior/Military 31-Day pass $30.00
16 Visalia Transit Fares
 Other passes sold at the Transit Center
 Half-off pass (available to new riders) $25.00
 County Wide – 31-Day TPASS General $55.00
 ADA/Disabled/Senior/Military 31-Day TPASS $35.00
 Dial-A-Ride
 One way General: $4.00 ADA/Disabled/Senior/Military: $2.25  10 Ride Pass General: $40.00 ADA/Disabled/Senior/Military: $22.50  ADA Only 31-Day Monthly Fast Pass $75.00
17 Visalia Transit Fleet
 Fixed Route
 36 Buses
 25 CNG
 11 Battery Electric
 Dial-A-Ride
 10 CNG Cutaways (short buses)
 V-LINE
 5 CNG Buses (2 full size, 3
cutaways)
 Microtransit
 7 ADA Accessible Vans
 5 minivans
 2 large vans
 Sequoia Shuttle
 27 Buses (fossil fuel)
 8 full size
 19 cutaways
 Special Events
 2 Trolleys (fossil fuel)
18 Fixed Route Ridership 2019-2024
1187986
676934
505383
556937
489109
573,151
0 200000
400000
600000
800000
1000000
1200000
1400000
2019
2020
2021
2022
2023
2024
19 Seki Gateway Shuttle Ridership 2019-2024
6175
0 0
7438
1155
6,427
0 1000
2000
3000
4000
5000
6000
7000
8000
2019
2020
2021
2022
2023
2024
20 SEKI Internal Shuttle Ridership 2019-2024
940164
0 348263
717676
290070
937,086
0 100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
2019
2020
2021
2022
2023
2024
21 22
Multiple County-Wide Collaborations
 Kings Area Rural Transit (KART)
 Routes at Visalia Transit Center
 CalVans
 Vanpool Program (Currently 26 Vanpools)
 Amtrak
 Routes at Visalia Transit Center
 Tulare County Regional Transit Agency (TCRTA)
 Tulare 11X route at Visalia Transit Center
 Vline
 Fresno State, Fresno Air Terminal (FAT)
 Greyhound
 Tulare 11X route at Visalia Transit Center
23 Major Transit Projects
 Maintenance and Operations Provider Change: October 1, 2024  Microtransit Pilot Service Launch
 April 2025
 Cross Valley Corridor Express Service Launch/New Transfer Station
 Downtown Transit-Oriented Pedestrian Improvements
24 Maintenance and Operations Provider Change
 City Council authorized selection of RATP Dev USA on August 12, 2024
 Transition from Transdev to RATP began immediately
 RATP assumed Provider role effective October 1, 2024
25 Microtransit Service Pilot Launch
 TCAG funded service pilot with State Senate Bill 125: $7.3 million  Contract services: $6.38 million
 Seven (7) ADA-accessible vans: $802,417
 Via on-demand reservation and mapping software: $117,600  Rates and Fees
 TCAG recommended $5 per ride in county-wide
 Public Process
 Citizens Advisory Committee: January 8, 2025
 Public Hearing: January 21, 2025
 Deployment beginning April 2025
 Branding and marketing efforts in progress
26 Microtransit Rates and Fees
 City Council Public Hearing: March 3, 2025
 $5.00 per trip flat rate (TCAG recommended regional rate)  Potential mileage-based rate for intercity county-wide trips 27 Cross Valley Corridor
 Visalia Transit the central transit hub between Porterville to the east, Lemoore to the west and Tulare to the south
 Kings Area Regional Transit (KART) currently providing service between Lemoore and Visalia
 Visalia Transit has been allocated $1.7 million in State Transit and Intercity Rail Capital Program (TIRCP) funding
 Two (2) zero-emission buses (ZEB’s); Hydrogen fuel-cell?  TCAG awarded $59 million in State TIRCP funding
 New transfer station and amenities: $19.3 million
 Zero-Emission Buses: $14.4 million
 Contract operator: $9.46 million
 Infrastructure: $7.25
28 Cross Valley Corridor
29 Downtown Transit-Oriented Improvements
 Downtown and Transit Center the central hub of the regional services area Kings and Tulare Counties
 Kaweah Health Medical Center
 Family Healthcare Network Clinic and Senior Care Center  Veterans Affairs Clinic
 City Civic Center
 Convention Center
 Crescent Valley Public Charter School
 Redwood High School
30 Questions or Comments?
31 Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 24-0533 Agenda Date: 3/3/2025 Agenda #: 2.

Agenda Item Wording:

Award a Contract for Farm Management Services - Award a contract to A&K Precision Management for Farm Management Services in the amount not to exceed $1.5 million per year to manage a total of 445 acres of pecan orchards surrounding the Water Reclamation Facility (WRF).

The initial contract shall be for a twelve (12) month period and shall, at the City's option and upon mutually agreeable terms, be renewable annually thereafter for four (4) consecutive one-year periods.

Deadline for Action: 3/3/2025
Submitting Department: Public Works
Contact Name and Phone Number: Nick Bartsch 559-713-4428 ; Rehana Cale 559-713-4176 Department Recommendation:

Staff recommends that the Council authorize staff to enter into a contract with A&K Precision Management in the amount not to exceed $1.5 million per year to manage a total of 445 acres of pecan orchards surrounding the Water Reclamation Facility (WRF) in accordance with RFP-24-25-

02. The initial contract shall be for a twelve (12) month period and shall, at the City's option and upon mutually agreeable terms, be renewable annually thereafter for four (4) consecutive one-year periods. Staff also recommends that the City simultaneously put out a request for bids to lease the property in subsequent years to evaluate the viability of an alternative option.

Background Discussion:

Since the 1960’s,the City has farmed various areas of City-owned land within and around the City of Visalia. Over time, many of the orchards and row crops have been removed, land sold, or farming has ceased due to various reasons. Per Council’sdirection, the 138-acre walnut orchard, north of the City’s Water Reclamation Facility (WRF), was recently removed and has been temporarily fallowed under the Greater Kaweah Groundwater Sustainability Agency’sPilot Fallowing Program.

Additionally, the City has 408 acres leased to Koetsier Dairy for row crops southeast of the WRF.

Staff is continuing to explore and evaluate alternative options for the best, and most strategic, future use of these properties. Finally, the City has 445 acres of pecan orchards surrounding the WRF.

Based on developing maturity, the health and condition of the pecan orchards, and projected crop production, the City Council directed City staff to continue farming the 445 acres of pecans in December 2023, utilizing Farm Management services under the prior contract, and solicit a new Request for Proposals (RFP) for this service given the prior contract term was scheduled to expire.

Request for Proposals RFP-24-25-02: Farm Management Services was advertised in the Visalia Times Delta on October 4, 2024 and October 9, 2024. Notices were sent to 57 agricultural contractors and posted on BidNetDirect online. Two pre-bid meetings were held on October 16, 2024 and October 17, 2024, with several firms in attendance at each meeting. The evaluation was based Visalia City Council Printed on 2/28/2025Page 1 of 5
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upon the following criteria:

Criteria Explanation Weight
(Points)
Merit of Proposal
Submittal/ Presentation
Proposal submittal thoroughness 20
Knowledge and Expertise
of Personnel/Company
Capability of personnel Staff qualifications Knowledge in pecan trees
20 Understanding of Project Knowledge of project requirements 20 Cost Evaluation of proposed fee structure and schedule 15 Record of Past
Performance
Farming pecans of 250+ acres Ability to work effectively with City staff and related parties
20 Local Vendor Preference Proposals submitted by businesses with a business address in Tulare County, CA will receive 5 percentage points
5 Based on aggregate evaluations and scoring from a committee comprised of various City employees and an industry professional using the above criteria, A&K Precision Management’sproposal was determined to be the most comprehensive and most qualified.

Summary:

Proposers: Location
Ag & Industrial Enterprises Earlimart, CA
Ag Land Partners Woodlake, CA
A&K Precision Management Visalia, CA
Hester Orchards Inc. Farmersville, CA
Hilvers Farm Management Visalia, CA
Rooted Asset Management Visalia, CA
R & R Farms McFarland, CA
Staff has reviewed A&K Precision Management’squalifications and their provided references and found them to be properly licensed with a positive work history.

Staff met with A&K Precision Management on several occasions to gain additional clarification regarding aspects of their experience and their approach to farm management, along with terms of their proposal. A&K Precision Management highlighted their experience and expertise in agronomy, farm and business development, and overall farm management. Their proposed ingenuitive approach toward the use of technology, assessment and efficient utilization of fertilizers and soil amendments, and continual effort to seek operational efficiencies identified the potential to reduce ongoing operational expenses. Given the size of the trees, they identified the ability to start utilizing mechanical hedging, as an alternative to manual pruning, with some of the trees would result in cost savings, for example. They also identified potential opportunities that could lead toward overall improved crop production, such as adjustments in pruning methods/techniques. Their business- minded approach toward long-term planning, profitability and long-term viability was also seen as an asset. After continued negotiations, an updated proposal was provided on February 5, 2025 with revised rates and estimated annual costs of $1,352,631.

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33 File #: 24-0533 Agenda Date: 3/3/2025 Agenda #: 2.

Fiscal Impact:

Because the land surrounding the Water Reclamation Facility is owned by the Wastewater Fund (4344), all related expenses are coded to this fund, and subsequently any proceeds from the sale of crop is also credited to the same fund. Most recently, in FY 2023/24, the annual farming operational expenditures for the west-side pecans were $1,391,865. Similarly structured as the existing Farm Management contract, A&K Precision Management proposed estimated annual costs of $1,352,631, made up of both fixed monthly costs, for the on-going management, oversight and planning related to the operation, along with reimbursable costs based on material costs and hourly labor and equipment rates. It is anticipated that the costs under a contract with A&K Precision Management would be comparable to what the City is currently incurring. The proposed fee structure and rates of every proposer varied, but those provided by A&K Precision Management were competitive and in line with those received from the other proposers.

As the orchard has matured, revenues have fluctuated, but harvest volumes have trended in a positive direction as a result of the increasing size and maturity of the trees along with the continued improvement of the health and maintenance of the orchard. However, overall, annual revenues generated from the pecan operation have continued to result in net operational losses. This was anticipated with the development of an orchard, but as the trees approach maturity, the average volume of nuts harvested annually is anticipated to continue to increase. Pecans are an alternate bearing crop, meaning they tend to produce a heavier (larger) crop every other year, so this, and other factors such as market conditions (pricing, demand, and availability), environmental conditions (weather) affecting both volume and the quality of the crop, as well as the cost of operations (materials and labor) all contribute toward overall profitability.

Below is a chart showing the City’specan orchard harvest quantity, quality, and payment summary over the past 3 years:
2021/22 2022/23 2023/24
Total (Pounds) 373,311 442,614 474,547
Pounds/Acre 838.9 994.64 1,066
Weighted Average
Edible Yield
(Pounds)
213,248 238,398 269,575
Weighted Average
Edible Yield
(Percentage)

57.12% 53.86% 56.80%
Payment Per In-shell
Pound
$1.97 $1.42 $1.56
Total Payment: $735,519.07 $629,283.15 $727,158.30
The most recent harvest (2024/25) revenues are not finalized as sales have not yet been completed.

In recent years, the quality of the City’s pecan kernels has been above average among those processed by the City’scontracted processor. However, the 2024/25 harvest produced less than recent years as a result of environmental conditions just prior to harvest and the impact of a perceived alternate-bearing season, both affecting the total volume harvested and also resulting in a Visalia City Council Printed on 2/28/2025Page 3 of 5
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34 File #: 24-0533 Agenda Date: 3/3/2025 Agenda #: 2.
lower edible yield (quality).

The variability of numerous factors, coupled with a still maturing orchard, make it difficult to predict when, and if, overall profitability will occur. The City’specan orchards were planted over the course of three years (2013, 2014 and 2015) - 100 acres, 156 acres, and 189 acres, respectively, making them 10-12 years old. Currently, the oldest trees have developed a full canopy, achieving their maximum size as they continue to develop more fruit-bearing limbs. These trees are projected to achieve maturity around 15 years of age, at which time they have the potential to produce as much as 3,500 pounds per acre, but at this point of maturity, actual production at full maturity is unknown.

Projections show the need to produce an average of 2,000 pounds per acre to match current operational expenses at current market pricing. Recently, the price per pound has been relatively low compared to historic norms, and the City’scrop is only producing approximately half of the quantity needed to break even at that price. However, with fluctuations in market pricing, that projection can vary significantly.

Prior Council Action:

December 18, 2023 - City Council was presented an update to the city-owned farmland and farming operations and provided direction to continue farming operations of the 445 acres of pecans.

February 16, 2021 - City Council was presented an update to the city-owned farmland and farming operations.

February 19, 2019 - City Council entered into a contract with Jeb Headrick Farming for an annual not to exceed amount of $1,000,000
Other: N/A
Alternatives:

Authorize staff to enter into an agreement with A&K Precision Management, as identified, while also pursuing alternative short- and long-term non-agricultural uses for the land including, but not limited to, alternative energy production (solar/hydrogen), recreation, short term storage, and other uses that would minimize water use, and provide for dust and weed control.

1. Enter into an agreement with A&K Precision Management for a period of 12 months, and direct staff to go back out with a new Request for Proposals for Farm Management Services.

2. Not enter into an agreement with A&K Precision Management and attempt to further negotiate the terms of the agreement, and if unsuccessful, direct staff to consider alternate proposals submitted under RFP24-25-02. This is not recommended as a delay in the award of a contract may result in a lapse in necessary management and operations.

Recommended Motion (and Alternative Motions if expected):

I move to authorize staff to enter into a contract with A&K Precision Management in the amount not to exceed $1.5 million per year to manage a total of 445 acres of Pecans surrounding the Water Reclamation Facility (WRF) in accordance with RFP-24-25-02. The initial contract shall be for a twelve (12) month period and shall, at the City's option and upon mutually agreeable terms, be renewable annually thereafter for up to four (4) consecutive one-year periods. Additionally, authorize staff to put out a request for bids to lease the property in subsequent years to evaluate the viability of Visalia City Council Printed on 2/28/2025Page 4 of 5
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35 File #: 24-0533 Agenda Date: 3/3/2025 Agenda #: 2.
staff to put out a request for bids to lease the property in subsequent years to evaluate the viability of an alternative option.

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

Attachment #1 - RFP-24-25-02
Attachment #2 - Vicinity Map
Attachment #3 - A&K Precision Management - Proposal
Visalia City Council Printed on 2/28/2025Page 5 of 5
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CCIITTYY OOFF VVIISSAALLIIAA

RREEQQUUEESSTT FFOORR PPRROOPPOOSSAALL
RRFFPP ##2244--2255--0022

FARM MANAGEMENT SERVICES

PPrrooppoosseerr CCoonnffeerreennccee:: Two (2) non-mandatory proposer conferences will be held at the City’s Water Reclamation Facility, located at 7579 Ave 288, Visalia, CA 93277 on Wednesday, October 16, 2024 at 9:00 a.m., and Thursday, October 17, 2024 at 9:00 a.m. Attendance at one of these meetings is highly recommended, but not mandatory in order to submit a proposal in response to this RFP. This is an opportunity to ask questions regarding the program and the Request for Proposal requirements.

SSuubbmmiittttaall:: One (1) unbound original and four (4) copies must be received on or before: 2:00 p.m. on Tuesday, November 5, 2024.

AAddddrreesssseedd ttoo:: Purchasing Division
707 W. Acequia Avenue
Visalia, CA 93291

AAddddrreesssseedd ffrroomm:: Proposer’s Name & Mailing Address MMaarrkk eennvveellooppee:: RFP No. 24-25-02
Farm Management Services

IINNQQUUIIRRIIEESS::

Direct questions for clarification of this bid document to Purchasing Division by calling (559) 713-4334 or emailing [email protected]. All questions must be received on or before Monday, October 21, 2024

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CITY OF VISALIA, CALIFORNIA

REQUEST FOR PROPOSAL
RFP 24-25-02

SEALED PROPOSALS will be received by the Purchasing Division located at 707 West Acequia, Visalia, CA 93291, until 2:00 P.M. Tuesday, November 5, 2024 for:

FARM MANAGEMENT SERVICES

Two (2) non-mandatory proposer conferences will be held on Wednesday, October 16, 2024 @ 9:00 a.m. and Thursday, October 17, 2024 at 9:00 a.m. These conferences will be held at the City’s Water Reclamation Facility, located at 7579 Ave 288, Visalia, CA 93277. Attendance at one of these meetings is highly recommended, but not required in order to submit a proposal in response to this RFP.

Contract documents may be obtained from the Purchasing Division, 707 W. Acequia Ave., Visalia, California 93291 by calling (559) 713-4334, or emailing [email protected].

The City hereby affirmatively ensures that Minority Business Enterprises and Disadvantaged Business Enterprises (DBE) shall have the maximum opportunity to participate in the performance of contracts and will be afforded full opportunity to submit bids in response to this notice and will not be discriminated against. No person will be discriminated against on the basis of race, religion, color, national origin, ancestry, physical or mental disability, medical condition, genetic information, marital status, gender, gender identity or expression, sexual orientation, or military and veteran status in any consideration leading to the award of contract.

No qualified disabled person shall, on the basis of disability, be excluded from participating in, be denied the benefits of, or otherwise be subjected to discrimination under any program or activity leading to the award of a contract.

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. By submitting a bid or proposal, Contractor represents that it is not a target of Economic Sanctions. 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 rejection of the Contractor’s bid/proposal any time prior to contract execution, or, if determined after contract execution, shall be grounds for termination by the State.

The right is reserved by the City of Visalia to reject any or all proposals, to waive any irregularities or informalities not affected by law, to evaluate the proposals submitted and to award the contract according to the proposal which best serves the interests of said City.

Publication Dates: October 4, 2024
October 9, 2024

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TABLE OF CONTENTS

TITLE PAGES

I. Definitions ....................................................................................................................................... 4

II. Introduction ..................................................................................................................................... 4 A. Information ........................................................................................................................... 4 B. Purpose and Objective ........................................................................................................ 5 C. RFP/Agreement Schedule ................................................................................................... 5

III. Scope of Services ........................................................................................................................... 6 A. Services of the Consultant/Consultant Responsibilities ...................................................... 6 B. City Responsibilities ............................................................................................................ 8

IV. Proposal Content and Format Requirements .............................................................................. 8 A. General Information ............................................................................................................. 8 B. Proposed Project Approach ................................................................................................. 8 C. Staff Qualifications and Related Experience ....................................................................... 8 D. Proposed Fee Structure and Schedules ............................................................................. 9 E. Conflict of Interest ................................................................................................................ 9 F. Required Documents ........................................................................................................... 9

V. Consultant Selection Procedure ................................................................................................... 9 A. Criteria ............................................................................................................................... 10 B. Background Check ............................................................................................................ 10 C. Award of Contract .............................................................................................................. 10

VI. Examination of Contract Requirements & Acceptance of Proposal Content ........................ 11 A. Withdrawal of Proposals .................................................................................................... 11 B. Rejection of Proposals ....................................................................................................... 11 C. Evaluation/Award of Contract ............................................................................................ 12

VII. Measurement & Payment ............................................................................................................ 12 A. Billing & Payments ............................................................................................................. 12 B. City’s Right to Withhold Certain Amounts ......................................................................... 12

VIII. General Conditions ..................................................................................................................... 12 A. Important Notice ................................................................................................................ 12 B. Legal Responsibilities ........................................................................................................ 13 C. Permits and Licenses ........................................................................................................ 13 D. Insurance ........................................................................................................................... 13 E. Assignment of Contract ..................................................................................................... 13 F. Documents/Data ................................................................................................................ 13 G. Termination of Contract ..................................................................................................... 13 H. Right To Require Performance .......................................................................................... 14 I. Ethics in Public Contracting ............................................................................................... 15 J. Independent Contractor ..................................................................................................... 15 K. Equal Employment Opportunity ......................................................................................... 15 L. Venue ................................................................................................................................ 15 M. Proprietary Information ...................................................................................................... 15 N. Incurring Costs................................................................................................................... 15 O. Firearms Prohibited ........................................................................................................... 16 P. Executive Order N-6-22 – Russia Sanctions ..................................................................... 16

Required Forms ................................................................................................................................... 17-24 Sample Agreement .............................................................................................................................. 25-30

Under Separate Attachment:

EXHIBIT 1 - Pricing List Sample (Schedule of Fees for Farming Services) EXHIBIT 2 – Location Map
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II.. DDEEFFIINNIITTIIOONNSS

For the purposes of this RFP NO. 24-25-02, the following terms shall have the meanings indicated:

1. “City” means the City of Visalia

2. “City Council” means the Council of the City of Visalia

3. "Bidder", "Vendor", "Supplier", “Consultant”, “Contractor”, “Manager” and “Subrecipient” are used interchangeably throughout this invitation to mean the person, company, or corporation or other entity submitting a Proposal in response to the Request for Proposal.

4. “Bid” and “Proposal” are used interchangeably to mean an individual’s or entity’s offer in response to this Request for Proposal.

5. “RFP” means Request for Proposal No. 24-25-02.

6. “Crop” means all crops designated by the City to be grown on the Property during the Term of the Agreement (including any extensions hereto).

7. “Crop Year” means 365 consecutive days (or 366 consecutive days in leap year) commencing on March 1 of each Year and ending on February 28 of the next succeeding Year.

8. “Manage” or “Management” means to directly supervise, operate, farm, maintain and manage the Property, including decision making related to performing preparation work, planting, cultivation, protection, and harvest of the Crop to be grown thereon, and to otherwise perform all acts required to be performed by the Manager under the terms of the Agreement.

9. “Operating Costs” means all costs that the Manager incurs or is to incur for and on behalf of the City to Manage the Property and Ordinary Farming on the Property, including reimbursement of Manager or direct payment for labor, equipment, and/or any other purchases, leases and services obtained on behalf of City, and for the management and production of the Property. Manager shall not incur any fee or expense with a cumulative cost to City in excess of $7,500.00 without prior written consent.

10. “Ordinary Farming” means the normal level of farming required for the production of the Crop as described in the Scope of Services.

11. “Property” means the real and personal property to be farmed under the Agreement as described in City of Visalia RFP No. 24-25-02

IIII.. IINNTTRROODDUUCCTTIIOONN

A. Information
The City of Visalia is requesting proposals for custom farming and management of City-owned orchard properties.

The scope of work and make-up of the property currently includes 100 acres of pecans planted in 2013, 156 acres of pecans planted in 2014, and 189 acres of pecans planted in 2015, for a total of 445 acres.

To encourage local vendor participation, five (5) points will be given to proposals submitted by local vendors. A local vendor is any business whose business address is located within Tulare County for the past six months. A P.O. Box will not be accepted as a business address. The City reserves the right to request proof of Tulare County address.

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Two (2) non-mandatory proposer conferences will be held on Wednesday, October 16, 2024 at 9:00 a.m. and Thursday, October 17, 2024 at 9:00 a.m. These conferences will be held at the City’s Water Reclamation Facility, located at 7579 Ave 288, Visalia, CA 93277. This is an opportunity for Proposers to ask questions about the program and the Request for Proposal requirements. Attendance at one of these meetings is highly recommended, but not required in order to submit a proposal in response to this RFP.

One (1) unbound original and four (4) copies of the proposal are to be submitted to the Purchasing Division, located at 707 W. Acequia, Visalia, CA 93291, on or before Tuesday, November 5, 2024 at 2:00 p.m.

This Request for Proposals is being issued by the City of Visalia Purchasing Division on behalf of the Public Works Department. Unless otherwise directed, all communications regarding this Request for Proposals should be directed to the Purchasing Division at (559) 713-4334. However, to prevent misinterpretations, the Purchasing Division would prefer that all questions be sent by email to [email protected].

Any revisions to the Request for Proposals will be issued and distributed as addenda. Proposers are encouraged to submit any questions or items for clarification in writing via email to the Purchasing Division. Proposers are specifically directed not to contact any other City personnel for meetings, conferences or technical discussions related to this Request for Proposal. Failure to adhere to this policy may be grounds for rejection of proposals.

B. Purpose, Objective and Services to be Provided

The City of Visalia owns 445 acres of pecan orchards immediately west of State Route 99 and one mile south of State Route 198.

The current make-up of the farm properties is as follows:
 100 acres of established pecans (2013)
 156 acres of established pecans (2014)
 189 acres of established pecans (2015)

The selected Company will manage the day-to-day farm operations and must be able to begin as soon as the award is made. The tentative date of award is 90 days after the proposal closing date.

C. RFP/Agreement Schedule

Event Date of Event

RFP Available to the public ................................................................................................................. October 4, 2024 Proposer Conference at 707 W. Acequia Ave. @ 9:00 a.m. ............................................................. October 16, 2024 Proposer Conference at 707 W. Acequia Ave. @ 9:00 a.m. ............................................................. October 17, 2024 Deadline for Written Questions .......................................................................................................... October 21, 2024 RFP due at 2:00 pm at 707 W Acequia ............................................................................................November 5, 2024 Short list established and vendors notified ........................................................................................... November 2024 Interviews/Presentations with short-listed vendors (if required) ........................................................... November 2024 Award of Contract @ City Council Meeting .......................................................................................... December 2024 Contract Begins ....................................................................................................................................... January 2024

Italicized items and dates are at the City’s option. The City reserves the right to award contract solely on the basis of proposal content.

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IIIIII.. SSCCOOPPEE OOFF SSEERRVVIICCEESS
A. Services of the Consultant/Consultant Responsibilities The Farm Manager's responsibilities shall include, but are not limited to, the following:
• The application of pesticides, rodenticides, herbicides, fungicides, and other chemicals as needed. • Operation of the irrigation system
• Irrigation of orchard, including coordination with Wastewater Plant and/or water District • General upkeep of the property
• Harvesting, dehydrating, and selling of crops
• Coordinating and ordering of new trees
• Planting of new trees, young tree training, budding, tipping, and tying mature tree pruning, stacking and disposing of brush, dead tree removal and replanting
• Regular fertilizing, nutritional sprays
• Assist City with general decisions about the property • Other duties as generally required to manage the farming operations

The following provisions describe the scope of work and services to be provided by the Vendor or “Manager” and responsibilities of the City for the existing improvements on the subject farm properties (“Property”).

1. Responsibility of Manager. Manager shall, exercise good faith and shall utilize its best judgment, to undertake on behalf of City the duties and responsibilities to Manage the Property as set forth in RFP 24- 25-02 including the management, supervision and control of the Property for agricultural purposes. In performing his duties, Manager shall use his best efforts to not incur excessive costs or expenses, including Operating Costs, in an amount greater than the normal rate or costs for similar services in Tulare County, California.

The Manager shall represent the City as its agent in all business transactions relating to the day-to-day Management of the Property to achieve the goal of a productive crop subject only to complying with his notification requirements to keep City current and accepting City’s input with respect to final decisions related to farming operations. The Manager is and shall be an independent contractor and shall not be construed in any manner to be an employee of the City. Nothing in the Agreement nor any act of the Parties shall be deemed or construed so as to create a partnership, a joint venture, lease or any other relationship between the City of Visalia and the Manager.

2. Review of Operating Costs. The Manager shall be authorized to incur, on behalf and in the name of the City, all reasonably necessary Operating Costs associated with Ordinary Farming and the Management of the Property. Manager shall review all bills and invoices from contractors, vendors and suppliers, and ensure that the invoices reflect actual costs incurred or work performed, and Manager shall sign off on the invoice confirming the validity of the operating costs. Manager shall cause copies of approved bills to be delivered to City on a monthly basis.

3. Farming Operations. Manager shall cause the Property to be farmed in a good and farmer-like manner and in accordance with the usual standards of good farming and husbandry prevailing in the area. Manager shall perform the following activities as Ordinary Farming:

a. Irrigation – Monitoring irrigation activities; ordering water deliveries when applicable; water scheduling; ordinary maintenance and repair needed as part of normal irrigation activities done by irrigators, which include minor replacement or repairs of drip hose, bubblers, and emitter. See Item 6, Repairs, for additional details regarding repair cost responsibility.

b. Pest control – Application of pesticides, rodenticides, herbicides, fungicides, and other chemicals as needed; bird control; removal of post-harvest nuts left on trees.

c. Equipment Usage – Mowing; road leveling; scraping and upkeep of the Property; watering of roadways for dust control as needed during operations. If specific roadway maintenance is required, such as laying gravel in the roadway or installing drains under the roadway, then Manager shall notify City for completion of such work as a separate project by the City. 42 Farm Management Services
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d. Harvest – Harvesting crops, including hand knocking; hauling; loading; dehydrating; and selling crops.

e. Pruning – Young tree training; budding; tipping and tying; mature tree pruning; stacking and disposing of brush. Tree removal and replanting shall not be considered Ordinary Farming, if such work is necessary the Manager shall recommend it to the City to be completed as separate project by the City.

f. Planting Cover Crops – When needed and depending on water availability.

g. Nutrition Monitoring – Regular tissue sampling; periodical soil testing.

h. Nutrition – Regular fertilizing nutritional sprays.

4. Subcontracting. The Manager shall obtain or cause to be obtained or furnished at City’s expense all labor contractor services required to carry out its ordinary farming activities under the Agreement. Manager shall verify that all labor contractors are licensed by the federal government and the State of California and carry all required insurance coverages, including but not limited to, workers compensation insurance as required by law and public liability insurance reasonably acceptable to City, including but not limited to meeting the standards listed in the Agreement, Attachment 2 – City of Visalia Standard Insurance Requirements, before allowing any laborer on the Property. Manager shall also verify on a periodic basis that the labor contractor is performing in compliance with applicable rules and regulations governing employment conditions and payment of employees and that his labor contractor license is in good standing. All persons performing such labor shall be agents or subcontractors of the labor contractors.

The Manager shall furnish or cause to be furnished at City’s expense all equipment, machinery, vehicles, transportation, sprays, fertilizers, supplies, power and supervision necessary and proper to perform Ordinary Farming operations.

Manager warrants that all materials and supplies used by it in the project will be free from all liens.

Manager shall indemnify and hold City harmless from all claims growing out of the lawful demands of a subcontractor, laborers, workers, mechanics, material persons, and furnishers of machinery and parts thereof, equipment, power tools, and all supplies, incurred in furtherance of the performance of this Agreement. Manager shall, at City’s request, furnish satisfactory evidence that all obligations of the nature here and above designated have been paid, discharged, or waived.

5. Water Supply and Facilities. Any existing agricultural water supply and distribution facilities located on the Property shall be operated by the Manager. Manager shall review the operation of the water supply and make recommendations to City for maintenance of the water supply system, which shall be the responsibility of the City.

6. Repairs. Manager shall be responsible for normal repairs of the existing improvements, improving the irrigation system. Normal repairs are minor repair, maintenance, or replacement of irrigation valves, control wires, sprinklers, nozzles, lateral lines, drip lines, or similar minor items that are routinely completed in farming operations. Damages to improvements caused by vandalism shall not be considered normal repairs and shall be the responsibility of the City.

Major repairs shall be the responsibility of the City. Major repairs are repairs or maintenance to water wells, irrigation controllers, booster pumps, or other equipment used for the delivery of surface or groundwater.

Any repair or maintenance work that requires a contractor’s license to be made shall be considered a major repair. Manager shall make recommendations to City on an annual basis of alterations, scheduled maintenance, likely repairs, or potential replacements of improvements to the Property. Once a major repair is approved by the City all costs associated with such work shall be the responsibility of the City.

7. Risk of Crop Failure. Manager does not guarantee against failure of the crop caused by weather conditions, water shortages, pests, or other factors that cannot be prevented by reasonable care and maintenance of the Property by the Manager to meet the terms of this Agreement.

The City reserves the right to accept or reject any of the individual components of the work product items. 43 Farm Management Services
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Manager shall have no interest in the crop produced, or any other item located on the property. All revenue received from the sale of crops or any other item from the orchard shall be payable directly to the City. Monthly billing/invoices need to list the detailed work performed and prices as outlined in the proposal.

B. City Responsibilities

• Allowing access to and usage of affluent water from the City of Visalia Water Reclamation Facility • Access to and usage of water wells and various booster pumps on site. Number of wells available for use shall be determined based on the acres in production.
• Payment of water assessments
• Payment of electric bills for water pumps
• Payment of property taxes
• Payment of invoices from Contractor

IIVV.. PPRROOPPOOSSAALL CCOONNTTEENNTT AANNDD FFOORRMMAATT RREEQQUUIIRREEMMEENNTTSS

The following are proposal requirements. Respondents are requested to organize their proposal into sections with tabs corresponding to the listed selection criteria as follows. You must answer the following questions in the same sequence as below. A screening committee will evaluate the completeness of the response to the RFP.

A. General Information

 Company name, address, telephone number, and email address.  Account Representative or other person to contact for clarification of any item contained in the proposal. Include telephone number and email address if different from above.  Specify type of organization (individual/partnership/corporation.  Provide your Federal Tax ID Number.
 Personnel of the Proposer’s Company must be identified in the proposal to include the number of seasonal and full-time employees. A contact person needs to be identified.  References and Referrals

B. Proposed Project Approach

Summarize your approach and understanding of the project and any special considerations of which the City of Visalia should be aware. Indicate clearly, the levels of participation you will expect from City of Visalia staff in the fulfillment of the contract.

Exceptions to the requirements of the RFP should be clearly delineated in this section.

In addition, you are invited to include a maximum of two (2) pages of information not included, nor requested in this RFP, if you feel it may be useful and applicable to this project.

The information in this section will aid the City in the refinement of the scope of work during contract negotiations.

Include a list of equipment that will be utilized and whether it will be rented or owned by your company.

Also include services that will be performed by other companies.

C. Staff Qualifications and Related Experience

This section should demonstrate your company’s experience with farming trees. Please specify any training, certifications, or education your staff may have that will be utilized for this contract (pesticides, etc).

Proposer shall have knowledge in the maintenance and health of pecan orchards and have 8 or more years of experience with farming pecans. Include information about previous projects that are comparable, 44 Farm Management Services
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including the size and type of project and the scope of services provided. These projects must demonstrate that the proposer has experience in providing services similar to the requirements called out in this RFP.

D. Proposed Fee Structure and Schedules

Provide proposed fees and cost information and recommend a monthly cost plan for all services to be provided in the following format:

 Proposers should review the requirements of this RFP and address all services in this fee schedule that might reasonably be expected. Indicate how the City will be invoiced for services, i.e., unit or hourly costs.

This information should be detailed. See Exhibit 1 for example.

 Proposers shall provide a fee schedule that outlines one (1) full year farming expense on a per acre basis.

 Costs not addressed in this proposal, will need City approval prior to services being rendered.

 The actual scope of services and fees included in the contract may be negotiated and may vary to satisfy the City’s actual needs.

E. Conflict of Interest

 Disclose any financial, business or other relationship with the City or any member of the City staff that may have an impact on the outcome of the project.
 List current clients who may have a financial interest in the outcome of the project.

F. Required Documents

Complete and submit the following documents:
 Non-Collusion Affidavit (Page 17)
 Workers’ Compensation Insurance Certificate (Page 18)  Equal Employment Opportunity Compliance Certificate (Page 19)  Bidder’s Statement on Previous Contracts Subject to EEOC (Page 20)  Americans with Disabilities Act Compliance Certificate (Page 21)  Ownership Disclosure and Levine Act (Page 22)
 Drug-Free Workplace Certification (Page 23)
 Iran Contracting Act (Page 24)
 All addenda issued for this RFP must be signed and submitted with proposal.

VV.. CCOONNSSUULLTTAANNTT SSEELLEECCTTIIOONN PPRROOCCEEDDUURREE

Selection of the successful proposal shall be generally based on the information provided by the Vendors in response to the Request for Proposals and any subsequent interviews that may be conducted. Consultant interviews will be held solely at the option and discretion of the City of Visalia. The process for selection shall occur in the following sequence:

 Review Proposals
 Establish a “short list” of three or more Companies
 Interview “short-listed” Companies (at the option and discretion of the City)  Identify best qualified Company
 Award contract

A project Selection Committee, as deemed necessary, will be formed to evaluate the proposals and to make recommendation to the Visalia City Council. This committee may consist of representatives of the user department, members of the community, members of the Council and the Administrative Services Department, and may include a representative knowledgeable in green waste services from outside of the community. Composition and creation of this committee, should one be formed, is at the sole discretion of the City. Names of the Committee members, should one be formed, will not be released prior to the time for interviews.

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The Committee will review the proposals for format to ensure conformance with the requirements of the RFP and may select finalists to interview with the Committee as a part of the Committee's evaluation process. The City does not guarantee that an interview will take place, thus reserving the right to select a contractor based solely on the information provided in the proposals received in response to the RFP. Should an interview take place, the key personnel responsible for fulfilling the requirements of the project shall be required to be present for the interview.

A. Criteria
The Committee will address the following criteria in evaluation of proposals in order to gauge the ability of a contractor to perform the contract as specified. The same general criteria will be used to judge both the proposal and the presentation, should the City choose to conduct interviews with short-listed Companies. Additionally, 5 points (Local Preference Points) will be given to any Proposer who has an established business address in the County of Tulare as outlined in Section II Introduction Item A.

Criteria Explanation Weight
Merit of Proposal Submittal/
Presentation
 Proposal submittal thoroughness 20
Knowledge and Expertise of
Personnel/Company
 Capability of personnel
 Staff qualifications
 Knowledge in pecan trees
20 Understanding of Project  Knowledge of project requirements 20 Cost  Evaluation of proposed fee structure and
schedule 15
Record of Past Performance  Farming pecans of 250+ acres  Ability to work effectively with City staff and
related parties
20 Local Vendor Preference  Proposals submitted by businesses with a business address in Tulare County, CA will
receive 5 percentage points
5 Prior to the award of contract, the City must be assured that the proposer selected has all of the resources required to successfully perform under the contract. This includes, but is not limited to, personnel with the skills required, equipment/materials and financial resources sufficient to provide services called for under this contract.

If, during the evaluation process, the City is unable to assure itself of the proposer’s ability to perform under the contract, if awarded, the City has the option of requesting from the proposer, any information that the City deems necessary to determine the proposer’s capabilities. If such information is required, the proposer will be notified and will be permitted seven (7) working days to submit the requested information.

B. Background Check
The City reserves the right to conduct a background inquiry of each proposer which may include the collection of appropriate criminal history information, contractual and business associations and practices, employment histories and reputation in the business community. By submitting a proposal to the City, the proposer consents to such an inquiry and agrees to make available to the City such books and records as the City deems necessary to conduct the inquiry.

C. Award of Contract
The successful Company will be required to execute a contract with the City of Visalia. A Draft Agreement has been included in this RFP to alert proposers to the provisions generally found in City contracts. The Draft Agreement may be altered from the enclosed form at the discretion of the City and without notice to consultant prior to award of contract. The City does not guarantee that the Final Agreement will duplicate the enclosed Draft Agreement.

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VVII.. EEXXAAMMIINNAATTIIOONN OOFF CCOONNTTRRAACCTT RREEQQUUIIRREEMMEENNTTSS AANNDD AACCCCEEPPTTAANNCCEE OOFF

PPRROOPPOOSSAALL CCOONNTTEENNTT

Before submitting a proposal, proposers must satisfy themselves by personal examination of the proposal requirements and other contract documents, and by any other means as they may believe necessary, as to the actual conditions, requirements, and difficulties under which the work must be performed and to verify any representations made by the City of Visalia, upon which the offeror will rely.

The submission of a proposal shall be considered conclusive evidence that the proposer has carefully investigated all conditions that affect, or may at some future date affect, the performance of services covered by this solicitation, and is satisfied as to the character, quality, and quantities of work to be performed and as to the requirements of the proposal. Submission of a proposal shall also be evidence that the proposer is familiar with directives that in any way affect prosecution of the work or persons engaged or employed in the work.

No proposer shall at any time after submission of a proposal make any claim or assertion that there was any misunderstanding or lack of information regarding the nature or amount of work necessary for satisfactory performance under the contract. If the proposer receives an award as a result of this Request for Proposals, failure to have made such investigations and examinations will in no way relieve the proposer from its obligations to comply in every detail with all provisions and requirements of the contract documents, nor will a plea of ignorance of such conditions and requirements be accepted as a basis for claim whatsoever by the proposer for additional compensation. Any errors, omissions, or discrepancies found in the specifications or other contract documents shall be called to the attention of the City and clarified prior to the submission of proposals.

Should the proposer feel there has been a supplemental or oral modification, it shall be his responsibility to verify said modification in writing prior to submission of the proposal.

The contents of the proposal of the successful proposer shall become contractual obligations if procurement action ensues. Failure to accept these obligations in a contractual agreement shall result in cancellation of award.

A. Withdrawal of Proposals
Any proposal may be withdrawn at any time prior to the time fixed in the public notice for the receipt of proposals, only by written request for the withdrawal of the proposal filed with the Purchasing Division. The request shall be executed by the proposer or his duly authorized representative. The withdrawal of a proposal does not prejudice the right of the proposer to file a new proposal. No proposal may be withdrawn after the time fixed in the public notice for the receipt of proposals.

B. Rejection of Proposals
The City of Visalia reserves the right to reject any or all proposals; to waive any requirements, both the City's and those proposed by the vendor; to waive any irregularities or informalities in any proposal or the RFP process when it is in the best interest of the City to do so; to negotiate for the modification of any proposal with mutual consent of the proposer; to re-advertise for proposals, if desired; to sit and act as sole judge of the merit and qualifications of the service offered and; to evaluate in its absolute discretion, the proposal of each vendor, so as to select the vendor which best serves the requirements of the City, thus insuring that the best interest of the City will be served.

Proposer’s past performance and the City's assurance that each proposer will provide service as proposal, will be taken into consideration when proposals are being evaluated.

The City may make such investigation as it deems necessary to determine the ability of a proposer to furnish the required services, and the proposer will furnish to the City all such information and data for this purpose as the City may request. The City reserves the right to reject any proposal if the evidence submitted by, or investigation of, such proposer fails to satisfy the City that such proposer is properly qualified to carry out the obligations of a contract and to deliver the services contemplated herein or; the proposal of any proposer who has previously failed to perform properly, or complete on time, contracts of a similar nature. Any material misrepresentation or material falsification of information provided to the City in the proposer’s proposal submission, or at any point in the proposal evaluation process, including any interview conducted, is grounds for rejection of the proposal. In the event that the misrepresentation or falsification is not discovered until after any agreement is awarded, the agreement may be terminated at that time. A determination as to whether a misrepresentation or falsification of the proposal submission is material shall be made solely in the exercise of the City’s sound discretion. The City expressly reserves the right to reject the proposal of any proposer who is in default on the payment of taxes, licenses or other moneys due to the City of Visalia.
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C. Evaluation/Award of Contract
Evaluation and selection of proposals will be based on the information called for in this RFP. Brochures or other promotional presentations beyond that sufficient to submit a complete and effective proposal are not desired.

Elaborate artwork, expensive paper or binders, and expensive visuals are not necessary.

Proposals will be evaluated by a Selection Committee. The City reserves the right to make the selection of a proposer based on any or all factors of value, whether quantitatively identifiable or not, including, but not limited to, the anticipated initiative and ability of the proposer to perform the services set forth herein.

The award, if made, will be made within ninety (90) days from proposal closing date. Proposer agrees and so stipulates in submitting this proposal, as though stated therein, and in any subsequent award of contract that:

1. Contract, should it be awarded, shall be interpreted, construed, and given effect in all respects according to the laws of the State of California.

2. Should proposer be awarded contract, proposer shall not assign contract, or any part thereof, or any moneys due or to become due thereunder, without prior consent of the City.

3. Proposer shall indemnify and hold harmless the City, its officers, officials, employees, and agents from and against all claims, damages, losses, and expenses caused in whole or in part by any negligent act or omission of the proposer, its consultants, subcontractor, anyone directly or indirectly employed by any of them, or anyone for whose acts any of them may be liable, except when caused by the active negligence, sole negligence, or willful misconduct by the City.

4. Proposer shall hold the City harmless from liability of any nature or kind, including cost and expenses for infringement or use of any copyrighted composition, secret process, patented or unpatented invention, article or appliance furnished or used in connection with the contract.

VVIIII.. MMEEAASSUURREEMMEENNTT AANNDD PPAAYYMMEENNTT AA.. Billing and Payments
Vendor is fully responsible for assuring that all services arising from the agreement are billed the correct and applicable contract rate. The vendor is required to establish and maintain a process to monitor its billing practices and will refund all over-charges that may occur.

Monthly billing/invoices need to list the detailed work performed and prices as outlined in the proposal.

B. City’s Right to Withhold Certain Amounts
The City may withhold a sufficient amount of any payment otherwise due to the contractor to cover:

 Work required in the specifications which is not performed or is incomplete or for defective work not remedied.
 The cost of having the required work done by City forces or others.

VVIIIIII.. GGEENNEERRAALL CCOONNDDIITTIIOONNSS
A. Important Notice
The City of Visalia will not be responsible for oral interpretations given by any City employee, representative, or others. Proposers are cautioned that any statements made that materially change any portion of the proposal documents shall not be relied upon unless subsequently ratified by a formal written amendment to the proposal document. The issuance of a written addendum is the only official method whereby interpretation, clarification, or additional information can be given. If any addenda are issued to this Request for Proposals, the City will attempt to notify all prospective vendors who have secured same. However, it will be the responsibility of each vendor, prior to submitting their proposal, to contact the Purchasing Division, located at 707 W. Acequia, Visalia, CA 93291, (559) 713-4334 to determine if addendums were issued and to make such addendum a part of the proposal.
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B. Legal Responsibilities
All proposals must be submitted, filed, made, and executed in accordance with State of California and Federal laws relating to proposals for contracts of this nature whether the same or expressly referred to herein or not. By submitting a proposal, Consultant certifies that he or she will comply with all Federal laws and requirements, including but not limited to Equal Employment Opportunity, Disadvantaged Business Enterprise, Labor Protection and other laws and regulations.

C. Permits and Licenses

1. Business Tax Certificate
Possession of a City of Visalia Business Tax Certificate is not required to submit a proposal in response to this invitation. However, Contractor shall be required to possess, at his/her own expense, a valid and current City of Visalia Business Tax Certificate, prior to commencing work. Fee is based on gross receipts for all business transactions in the City of Visalia. For additional information, contact the City of Visalia at (559) 713-4326.

2. Permits
Consultant shall be required to obtain and maintain at his/her own expense, any and all permits, licenses and certifications issued by any federal, state or local governmental agency, pertaining to, and necessary for providing the services required in this Request for Proposals.

D. Insurance
Insurance is required. See Sample Agreement, Attachment 2.

E. Assignment of Contract
No assignment by the vendor of the contract or any part hereof, or of funds to be received there under, will be binding upon the City unless such assignment had prior written approval and consent of the City. In the event the City gives such consent, the terms and conditions of the agreement shall apply to, and bind the party or parties to whom such work is assigned, sublet or transferred.

F. Documents/Data
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.

G. Termination of Contract
The nature of this services contract requires that the City and the consultant must work closely as a mutually supporting team without conflict. Also, the City needs to be able to terminate this agreement at any time the City may feel this working relationship has been impaired or should the City no longer have complete confidence and satisfaction in the quality and performance of services by the proposer. Therefore:

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 of Agreement Without Cause:

The CITY may terminate this Agreement at any time by giving written notice to the Consultant of such termination and specifying the effective date thereof, at least ninety (90) days before the effective date of such termination. Should the contract be terminated for convenience, the proposer shall be paid for all authorized services provided, including reasonable charges for de- mobilization. However, the proposer shall not be paid any anticipated profit or fees for services not provided.

The CONSULTANT may terminate this Agreement after each season’s harvest by providing the City with written notice of such termination ninety (90) days before the end of the harvest.

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

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

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

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, 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.

H. Right to Require Performance
The failure of the City at any time to require performance by the proposer of any provisions hereof shall in no way affect the right of the City thereafter to enforce the same. Nor shall waiver by the City of any breach of any provision hereof be taken or held to be waiver of any succeeding breach of such provision or as a waiver of any provision itself.
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I. Ethics in Public Contracting
Each proposer, by submitting a proposal, certifies that it is not a party to any collusive action or any action that may be in violation of the Sherman Antitrust Act by submitting a proposal, the proposer certifies that its proposal was made without fraud; that it has not offered or received any kickbacks or inducements from any other proposer in connection with the request for proposal; and that it has not conferred on any public employee, public member or public official having responsibility for this procurement transaction, any payment, loan, subscription, advance, deposit of money, services, or anything of more than nominal value. The proposer further certifies that no relationship exists between itself and the City or another person or organization that interferes with fair competition or constitutes a conflict of interest with respect to a contract with the City of Visalia.

Prior to the award of any contract, the potential Consultant may be required to certify in writing to the Purchasing Division that no relationship exists between the proposer and any City employee, officer, official or agent that interferes with fair competition or is a conflict of interest with respect to a contract with the City of Visalia.

More than one proposal from an individual, firm, partnership, corporation or association under the same or different names may be rejected. Reasonable grounds for believing that a proposer has interest in more than one proposal for the work solicited may result in rejection of all proposals in which the proposer is believed to have an interest.

J. 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.

K. Equal Employment Opportunity
During the performance of the contract, proposer agrees to the following:

1. Proposer shall comply with all the requirements, when applicable, of the California Fair Employment Practice Commission and provisions of, when applicable, all Federal, State of California, County of Tulare and City of Visalia laws and ordinances related to employment practices.

2. Proposer shall not discriminate against any employee or applicant for employment on the basis of race, religion, color, gender, age, handicap, national origin or ancestry, except when such a condition is a bona fide occupational qualification reasonably necessary for the normal operations of the proposer.

The proposer agrees to post in conspicuous places, visible to the employees and applicants for employment, notices setting forth the provisions of this nondiscrimination clause.

3. Proposer, in all solicitations or advertisements for employees, placed by, or on behalf of the proposer, shall state that proposer is an Equal Opportunity Employer.

L. Venue
Any contract resulting from this solicitation shall be governed by, and construed in accordance with, the laws of the State of California. Venue for any litigation arising out of the contract will be vested in Tulare County, California.

M. Proprietary Information
The proposals received shall become the property of the City of Visalia and are subject to public disclosure.

Proposal prices and information submitted by proposers will be made available to proposers after City Council has approved award of contract. Proposers are to indicate any restrictions on the use of data contained in their responses. Those parts of a proposal which are defined by the proposer as business or trade secrets, as that term is defined in California Government Code, Section 6254.7, and are reasonably marked as “Trade Secrets”, “Confidential” or “Proprietary” shall only be disclosed to the public if such disclosure is required or permitted under the California Public Records Act or otherwise by law. Proposers who indiscriminately and without justification identify most, or all, of their proposal as exempt from disclosure may be deemed non-responsive.

N. Incurring Costs
The City of Visalia is not liable for any cost incurred by proposers in responding to this Request for Proposals. 51 Farm Management Services
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O. 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.

P. 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. By submitting a bid or proposal, Contractor represents that it is not a target of Economic Sanctions. 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 rejection of the Contractor’s bid/proposal any time prior to contract execution, or, if determined after contract execution, shall be grounds for termination by the State. 52 Farm Management Services
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NON-COLLUSION AFFIDAVIT
Submit With Proposal

STATE OF CALIFORNIA )
) ss

CITY OF VISALIA )

_________________________, being first duly sworn, deposes and says that he or she is _________ of __________ the party making the foregoing Bid; that the Bid is not made in the interest of, or on behalf of, any undisclosed person, partnership, company, association, organization, or corporation; that the Bid is genuine and not collusive or sham; that the BIDDER has not directly or indirectly induced or solicited any other BIDDER to put in a false or sham Bid, and has not directly or indirectly colluded, conspired, connived, or agreed with any BIDDER or anyone else to put in a sham Bid, or that anyone shall refrain from Bidding; that the BIDDER has not in any manner, directly or indirectly, sought by agreement, communication, or conference with anyone to fix the Bid price of the BIDDER or any other BIDDER, or to fix any overhead, profit, or cost element of the Bid price, or of that of any other BIDDER, or to secure any advantage against the public body awarding the contract of anyone interested in the proposed contract; that all statements contained in the Bid are true; and, further, that the BIDDER has not, directly or indirectly, submitted his or her Bid price or any breakdown thereof, or the contents thereof, or divulged information or data relative thereto, or paid, and will not pay, any fee to any corporation, partnership, company association, organization, bid depository, or to any member or agent thereof to effectuate a collusive or sham Bid.

Company: ______________________________________________ Business Address: ______________________________________________ Signature: ______________________________________________ Name of Signing Official: ______________________________________________ Title of Signing Official: ______________________________________________ Date: ______________________________________________

Company Seal:

State of California
County of ________________________

On this __________ day of _______________before me, ___________________________________________, a Notary Public, personally appeared ____________________________________________,who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct
WITNESS my hand and official seal.

Signature __________________________________ (Seal)
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
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WORKERS’ COMPENSATION INSURANCE CERTIFICATE
Submit With Proposal

STATE OF CALIFORNIA )
) ss

CITY OF VISALIA )

I am aware of the provisions of Section 3700 of the Labor Code which requires every employer to be insured against liability for workers’ compensation or to undertake self- insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the work under this contract.

Company: _________________________________________

Business Address: _________________________________________

Signature: _________________________________________

Name of Signing Official: ________________________________________

Title of Signing Official: _________________________________________

Date: _________________________________________

Company Seal:

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EQUAL EMPLOYMENT OPPORTUNITY COMPLIANCE CERTIFICATE
Submit With Proposal

Equal Opportunity Clause
Unless exempted by rules, regulations or orders of the Secretary of Labor issued pursuant to Executive Orders 28925, 11114 or Section 204 of Executive Order 11246 of September 24, 1965, during the performance of each contract with the City of Visalia, the contractor agrees as follows:

1. The vendor will not discriminate against any employee or applicant for employment because of race, color, religion, gender, national origin or political affiliation. The contractor will take affirmative action to ensure that applicants are employed, and that employees are treated during employment, without regard to their race, color, religion, gender, national origin or political affiliation. Such action shall include, but not be limited to, the following:
employment upgrading, demotion or transfer, recruitment or recruitment advertising, layoff or termination, rates of pay or other forms of compensation, and selection for training, including apprenticeship. The contractor agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided by the contracting officer setting forth the provisions of this nondiscrimination clause.

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

3. The vendor will send to each labor union or representative of workers with which he has a collective bargaining agreement or other contract or understanding, a notice to be provided by the agency contracting officer, advising the labor union or the workers’ representative of the contractors’ commitments under Section 202 of Executive order 11246 of September 24, 1965, and shall post copies of the notice in conspicuous places available to employees and applicants for employment.

4. The vendor will comply with all provisions of Executive Order 11246 of September 24, 1965, and the rules, regulations and relevancy orders of the Secretary of Labor.

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

5. In the event of the vendor’s non-compliance with the non-discrimination clauses of this subcontract or with any of such rules, regulations or orders, this subcontract may be canceled, terminated or suspended, in whole, or in part and the vendor may be declared ineligible for further government contracts in accordance with the procedures authorized in accordance with Executive Order 11246 of September 24, 1965, and such other sanctions may be imposed and remedies invoked as provided in Executive Order 11246 of September 24, 1965, or by rule, regulation or order of the Secretary of Labor, or otherwise provided by law.

6. The vendor will include the provisions of Paragraphs (1) through (7) in every subcontract or purchase order unless exempted by rules, regulations or orders of the Secretary of Labor issued pursuant to Section 204 of Executive Order 11246 of September 24, 1965, so that such provisions will be binding upon each Subcontractor or vendor. The contractor will take such action with respect to any subcontract or purchase order as the contracting agency may direct as a means of enforcing such provisions including sanctions for non-compliance. Provided, however, that in the event the contractor becomes involved in, or is threatened with litigation with a subcontractor or vendor as a result of such direction by the contracting agency, the contractor may request the United States to enter into such litigation to protect the interest of the United States.

Certification on Non-Segregated Facilities
The contractor hereby certifies that it does not or will not maintain segregated facilities nor permit its employees to work at locations where facilities are segregated on the basis of race, color, religion, gender, national origin or political affiliation.

___________________________________ _______________________________ ________________ Name of Firm Authorized Signature Date

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BIDDER’S STATEMENT ON PREVIOUS CONTRACTS

SUBJECT TO EQUAL EMPLOYMENT OPPORTUNITY CLAUSE
(EXECUTIVE ORDER 11426)
Submit With Proposal

The BIDDER shall complete the following statement by checking the appropriate blanks:

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

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

If the BIDDER has participated in previous contracts subject to the Equal Employment Opportunity Clause and has not submitted compliance reports due under applicable filing requirements, the BIDDER shall submit a compliance report on Standard Form 100, “Employee Information Report EEO-I” prior to award of the contract.

Note: Failure to complete the blanks may be grounds for rejecting the bid.

Company Seal:
(if any)

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AMERICANS WITH DISABILITIES ACT COMPLIANCE CERTIFICATE
Submit With Proposal

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

Company Seal:
(if any)

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Ownership Disclosure and California Levine Act Statement Submit With Proposal

The following disclosure and statement apply to the Bidder/Proposer/Contractor/Consultant/ Vendor/Supplier or Company:

1. submitting a bid or proposal in response to a solicitation by City of Visalia; or

2. as Awardee of a contract/purchase order which is subject to approval by the Visalia City Council.

OWNERSHIP DISCLOSURE

____________________________________________________________________________________ Name of Bidder/Proposer/Contractor/Consultant/Vendor/Supplier or Company ____________________________________________________________________________________ Address
List the names of all principals, partners, and/or trustees. For corporations, provide names of officers, directors and all stockholders owning more than 10% equity interest in corporation:
_____________________________________________________________________________________ _____________________________________________________________________________________ ________________________________________________________________________

CALIFORNIA LEVINE ACT STATEMENT
California Government Code Section 84308, also know as the “Levine Act,” can prohibit members of the Visalia City Council from participating in any action related to a contract if he or she receives any political contributions totaling more than $250 within the previous twelve (12) months, and for twelve (12) months following the date a final decision concerning the contract has been made, from the person or company awarded the contract. The Levine Act also requires disclosure of such contribution(s) by a party to be awarded a specific contract.

The following website contains a list of current Visalia City Council Members, https://www.visalia.city/government/city_council/default.asp. You are responsible for reviewing the names of Visalia City Council Members prior to making the following disclosure:

1. Have you or your company, or any agent on behalf of you or your company, made any political contributions of more than $250 to a Visalia City Council Member in the twelve (12) months preceding the date of the submission of your proposals or the anticipated date of any City Council action related to this contract? YES:_____ NO:_____. If yes, please identify the City Council Member(s) and date(s) of contribution in the space below:

Council Member(s) Name Date of Contribution(s)

_____________________________ ___________________________

Answering YES, does not preclude the City of Visalia from awarding a contract to your firm or from taking any subsequent action related to the contract. It does, however, preclude the identified Visalia City Council Member(s) from participating in any actions related to this contract.

Signature of Company Authorized Individual Print or Type Name of Authorized Individual

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Submit with Proposal

STATE OF CALIFORNIA

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

CERTIFICATION

I, the official named below, hereby swear that I am duly authorized legally to bind the contractor or grant recipient to the certification described below. I am fully aware that this certification, executed on the date below, is made under penalty of perjury under the laws of the State of California.

CONTRACTOR/BIDDER FIRM NAME

FEDERAL ID NUMBER
BY (Authorized Signature)

DATE EXECUTED

PRINTED NAME AND TITLE OF PERSON SIGNING TELEPHONE NUMBER (Include Area Code)

( )
TITLE

CONTRACTOR/BIDDER FIRM’S MAILING ADDRESS

The contractor or grant recipient named above hereby certifies compliance with Government Code Section 8355 in matters relating to providing a drug-free workplace. The above-named contractor or grant recipient will:

1. Publish a statement notifying employees that unlawful manufacture, distribution, dispensation, possession, or use of a controlled substance is prohibited and specifying actions to be taken against employees for violations, as required by Government Code Section 8355(a).

2. Establish a Drug-Free Awareness Program as required by Government Code Section 8355(b), to inform employees about all of the following:

(a) The dangers of drug abuse in the workplace,
(b) The person’s or organization’s policy of maintaining a drug-free workplace, (c) Any available counseling, rehabilitation and employee assistance programs, and (d) Penalties that may be imposed upon employees for drug abuse violations.

3. Provide as required by Government Code Section 8355©, that every employee who works on the proposed contract or grant:

(a) Will receive a copy of the company’s drug-free workplace policy statement, and (b) Will agree to abide by the terms of the company’s statement as a condition of employment on the contract or grant.

4. At the election of the contractor or grantee, from and after the “Date Executed” and until ____________ (NOT TO EXCEED 36 MONTHS), the state will regard this certificate as valid for all contracts or grants entered into between the contractor or grantee and this state agency without requiring the contractor or grantee to provide a new and individual certificate for each contract or grant. If the contractor or grantee elects to fill in the blank date, then the terms and conditions of this certificate shall have the same force, meaning effect and enforceability as if a certificate were separately, specifically, and individually provided for each contract or grant between the contractor or grantee and this state agency.

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IRAN CONTRACTING ACT CERTIFICATION
(PUBLIC CONTRACT CODE SECTION 2200 ET SEQ.)
Submit With Proposal

As required by California Public Contract Code Section 2204, the Contractor certifies subject to penalty for perjury that the option checked below relating to the Contractor’s status in regard to the Iran Contracting Act of 2010 (Public Contract Code Section 2200 et seq.) is true and correct:

⃝ The Contractor is not:

(1) Identified on the current list of persons and entities engaged in investment activities in Iran prepared by the California Department of General Services in accordance with subdivision (b) of Public Contract Code Section 2203; or

(2) A financial institution that extends, for 45 days or more, credit in the amount of $20,000,000 or more to any other person or entity identified on the current list of persons and entities engaging in investment activities in Iran prepared by the California Department of General Services in accordance with subdivision (b) of Public Contract Code Section 2203, if that person or entity uses or will use the credit to provide goods or services in the energy sector in Iran.

⃝ The City has exempted the Contractor from the requirements of the Iran Contracting Act of 2010 after making a public finding that, absent the exemption, the City will be unable to obtain the goods and/or services to be provided pursuant to the Contract.

⃝ The amount of the Contract payable to the Contractor for the Project does not exceed $1,000,00 over the life of the contract (up to 5 years).

Signature:____________________________________ Printed Name:_________________________

Title:______________________________________ Agency Name:_____________________________

Date:____________________

Note: In accordance with Public Contract Code Section 2205, false certification of this form shall be reported to the California Attorney General and may result in civil penalties equal to the greater of $250,000 or twice the Contract amount, termination of the Contract and/or eligibility to bid on contracts for three years.

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SAMPLE AGREEMENT
Farm Management Services
(City of Visalia RFP No. 24-25-02)

This Agreement, entered into and effective this ______ day of _______, 2024, by and between the City of Visalia, hereinafter referred to as the “CITY”, and ____________________________ hereinafter referred to as the “VENDOR”, “BIDDER”, or “SUBRECIPIENT”.

R E C I T A L S

WHEREAS, VENDOR is an ____________________ (insert individual or entity type) with a primary business address of _____________________________ and SSN or EIN: ____________________; and

WHEREAS, CITY is a municipal corporation and Charter Law City; and

WHEREAS, CITY desires services for Farm Management, which was let to bid on ___________ as evidenced by RFP No. 24-25-02, Farm Management Services; and

WHEREAS, City of Visalia reviewed and evaluated responses to the Proposal and determined to award a contract to VENDOR for Farm Management Services; and

WHEREAS, VENDOR represents it is licensed, qualified and willing to complete the Project pursuant to terms and conditions of this Agreement.

NOW, THEREFORE, CITY and VENDOR agree as follows:

1. TERM:

The term of this Agreement shall commence on the Effective Date and expire upon completion of all obligations of the parties, unless earlier terminated by the parties. The initial contract term shall be for a twelve (12) month period and shall, at the City’s option and with the consent of the CONTRACTOR, be extended annually thereafter for four (4) consecutive one-year periods. Additionally, this Agreement may be terminated for convenience. In the event of termination or expiration of this Agreement, CONTRACTOR shall transfer to CITY any funds and/or accounts receivable on hand attributable to the use of CITY funds.

2. ATTACHMENTS INCORPORATED:

The following are attachments for this Agreement. Said attachments are incorporated into this Agreement as if included in full in the body:

ATTACHMENT NO. DESCRIPTION OF ATTACHMENT
Attachment 1 General Contract Provisions
Attachment 2 Insurance Requirements
Attachment 3 City of Visalia RFP 24-25-02, Farm Management Services Attachment 4 Vendor’s proposal in response to RFP No. 24-25-02 Attachment 5 Schedule of Fees for Farming Services

3. VENDOR SCOPE OF SERVICES and COMMITMENTS*:

CONTRACTOR shall provide the following services for the stated compensation (“Scope of Services”):

A. The CONSULTANT agrees to perform all work necessary to complete in a manner satisfactory to the CITY those tasks described in RFP 24-25-02 for the cost identified in Attachment 5.

B. Additional Services: Incidental work related to the PROJECT and not described in RFP 24-25-02, may be needed during the performance of this Agreement. The CONSULTANT 61 Farm Management Services
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agrees to provide any and all additional services at the rates identified in Attachment 5, Schedule of Fees for Farming Services. Such additional services shall not be performed by CONSULTANT without the written consent of CITY.

4. CITY COMMITMENTS:

CITY shall perform the tasks listed as City’s responsibilities as described in RFP 25-24-02.

5. COMPENSATION:

CITY shall pay VENDOR compensation on a reimbursement basis for services performed based on detailed monthly invoices and prices as outlined in Attachment 5, Schedule of Fees for Farming Services. The VENDOR shall be paid no later than thirty (30) days following submission of a written, verified invoice to the City. Annual compensation shall not exceed the following amount under this Agreement, unless otherwise agreed in writing.

6. CONTRACT PRICE ADJUSTMENTS: All prices shall be firm and fixed for twelve (12) months from the annual anniversary date of the agreement. Prices may be adjusted annually at time of contract renewal and upon mutual agreement of the parties. It will be the responsibility of the contractor to request a price adjustment and to provide all documentation necessary to support this request. The request for price adjustment must be submitted to the Project Manager within the thirty (30) calendar day period prior to the annual anniversary date of the agreement.

The unit prices for the ensuing contracts shall be based on the movement of the unadjusted figures of the U.S. Department of Labor Consumer Price Index (CPI) for all Urban Consumers (CPI-U All Cities Average). The contract unit prices may be changed in an amount equal to the percentage of movement for the most recent twelve-month period.

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

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

VENDOR

Dated: ___________________ By: ________________________________________________ Authorized Officer: I certify under penalty of perjury under the laws of the State of California that I am fully authorized to execute this Agreement for VENDOR in the capacity I have stated, and that such execution is sufficient to bind the CONTRACTOR.

CITY OF VISALIA
Dated: ____________________ By: ________________________________________________ City Manager

Dated: ____________________ By: ________________________________________________ City Attorney
Dated: ____________________ By: _______________________________________________ City of Visalia Risk Manager

Dated: ____________________ By: ________________________________________________ City of Visalia Project Manager
Cost $
Source of Funds: Local Revenues
Payment Schedule: As invoices are received.
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ATTACHMENT 1

GENERAL CONTRACT PROVISIONS

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

B. Prohibition of Assignment: Neither party shall assign, delegate or transfer their rights and duties in this Agreement without the written consent of the other party.

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

CITY OF VISALIA ______________________________
707 W. Acequia Ave. ______________________________
Visalia, CA 93291 ______________________________
Attention: City Clerk Attention: ______________________

D. Independent Contractor: It is understood and agreed by the parties herein that CONTRACTOR, in the performance of this Agreement, shall act as an independent contractor, and therefore shall obtain no rights to any fringe benefits that accrue to regular full-time CITY employees.

E. Jurisdiction/Venue/Waiver Of Removal: This Agreement shall be administered and interpreted under the laws of the State of California. Jurisdiction of litigation arising from this Agreement shall be in California. Any action brought to interpret or enforce this Agreement, or any of the terms or conditions hereof, shall be brought in Tulare County, California. The CONTRACTOR hereby expressly waives any right to remove any action to a county other than Tulare County as permitted pursuant to Section 394 of the California Code of Civil Procedure.

F. Integration/Modification: This Agreement and each of the documents and exhibits or attachments referenced herein, which are incorporated by reference, represents the entire understanding of the parties as to those matters contained herein. No prior oral or written understanding shall be of any force or effect with respect to those matters covered hereunder.

This Agreement may not be modified or altered except in writing signed by the parties, unless otherwise explicitly authorized.

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

H. Indemnification: The CONTRACTOR waives any and all claims and recourse against the CITY, including the right of contribution of loss or damage to person or property arising from, growing out of, or in any way connected with or incidental to the CONTRACTOR’s performance of this Agreement, except claims arising from the concurrent or sole negligence of the CITY or its officers, agents or employees. The CONTRACTOR will indemnify, hold harmless, and defend (at CITY’s option) the CITY against any and all claims, demands, damages, costs, expenses, or liability arising out of the CONTRACTOR’s performance of this Agreement except for liability arising out of the concurrent or sole negligence of the CITY or its officers, agents, or employees.

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

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

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K. 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.

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ATTACHMENT 2

INSURANCE REQUIREMENTS

1. CONTRACTOR Insurance. CONTRACTOR, at its sole cost and expense, for the full term of this Agreement (and any extensions thereof), shall obtain and maintain at a minimum compliance with all of the following insurance coverage(s) and requirements. Such insurance coverage shall be primary coverage as respects CITY and any insurance or self-insurance maintained by CITY shall be in excess of CONTRACTOR’s insurance coverage and shall not contribute to it.

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

3. Types of Insurance and Minimum Limits. The following types of insurance and minimum limits are required providing at least the following minimum coverage and limits of liability:

a. Worker’s Compensation written in accordance with the laws of the State of California providing coverage for any and all employees of CONTRACTOR in the minimum statutorily required coverage amounts;

b. Automobile Liability Insurance for each of CONTRACTOR’s vehicles used in the performance of this Agreement, including owned, non-owned (e.g. owned by CONTRACTOR’s employees or contractors), leased or hired vehicles, in the minimum amount of $1,000,000 combined single limit per occurrence for bodily injury and property damage.

c. Comprehensive or Commercial General Liability Insurance coverage in the minimum amount of $1,000,000 combined single limit, including coverage for:

(1) bodily injury
(2) personal injury
(3) broad form property damage
(4) contractual liability
(5) cross-liability
(6) products and completed operations liability

4. Other Insurance Provisions.

If any insurance coverage required in this Agreement is provided on a “Claims Made” rather than “Occurrence” form, CONTRACTOR agrees to maintain the required coverage for a period of three (3) years after the expiration of this Agreement (hereinafter “post agreement coverage”) and any extensions thereof. CONTRACTOR may maintain the required post agreement coverage by renewal or purchase of prior acts or tail coverage. This provision is contingent upon post agreement coverage being both available and reasonably affordable in relation to the coverage provided during the term of this Agreement. For purposes of interpreting this requirement, a cost not exceeding 100% of the last annual policy premium during the term of this Agreement in order to purchase prior acts or tail coverage for post agreement coverage shall be deemed to be reasonable.

5. Endorsements.

All required Automobile and Comprehensive or Commercial General Liability Insurance shall be endorsed to contain the following clauses:

a. The City of Visalia, its officers, agents, employees, representatives, and volunteers are added as additional insureds as respects operations and activities of, or on behalf of the named insured, performed under contract with the City of Visalia.

b. It is agreed that any insurance maintained by the City of Visalia shall apply in excess of and not contribute with insurance provided by this policy.

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

Acequia, Visalia, CA, 93291

6. Proof of Coverage.

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

City of Visalia
707 W. Acequia
Visalia, CA 93291
Attn: Purchasing Division

66 Rd 68
Hwy 99
Ave 280
Visalia
Municipal
Airport (Vis)
Nearmap US
¯
Orchard
Parcels
0 975 1,950487.5
Feet
City of Visalia Orchards
(Ave 280 & Rd 68)
67 A&K Precision Management RFP# 24-25-02 February 5th, 2025 CONFIDENTIAL Page 1
CITY OF VISALIA REQUEST FOR PROPOSAL RFP# 24-25-02 Purchasing Division 707 W. Acequia Avenue Visalia, CA 93291 Proposal For Farm Management Services A&K Precision Management 11945 Avenue 274, Unit B Visalia, CA 93277 (559) 707-5286 [email protected] [email protected] 68 A&K Precision Management RFP# 24-25-02 February 5th, 2025 CONFIDENTIAL Page 2
A&K Precision Management 11945 Avenue 274, Unit B, Visalia CA 93277 February 5th, 2025 Re: RFP#24-25-02 Farm Management Services To Whom It May Concern: We are pleased to offer herewith our proposal for the following farm management services contract for the City of Visalia: 100 acres of established pecans (2013) 156 acres of established pecans (2014) 189 acres of established pecans (2015) Total farmed acres: 445 acres A&K Precision Management, under the direction of Jeb Headrick Farming (A&K), has had the privilege of providing custom farm management services for the City of Visalia at the above properties since March 2019. In the five years that we have been managing the properties, we have overseen a transition from sub-optimal to currently thriving and healthy acreage. We hope to be able to continue our relationship with the City of Visalia and continue this positive track record going forward. A&K Precision Management is owned and operated by Mr. Kevin Rost and Mr. Abel Arroyo, who are active in the day-to-day management of the Company’s operations and collectively have 30 years’ experience farming permanent crops in the Visalia area. You will be working directly with the owners of the Company. Attached is our proposal to continue to farm the City of Visalia’s pecan acreage as A&K transitions into a consultative role. We are excited to provide this proposal to the City and look forward to the opportunity to continue our partnership with the City of Visalia. For questions and discussion regarding our proposal, please contact either of us via email or phone (559) 707-5286. We look forward to further discussions at your convenience. Regards Mr. Kevin Rost Mr. Abel Arroyo Owner-Operator Owner Operator 69 A&K Precision Management RFP# 24-25-02 February 5th, 2025 CONFIDENTIAL Page 3

TABLE OF CONTENTS A
General Information Page 4 B Proposed Project Approach 6 C Staff Qualifications & Related Experience 14 D Proposed Fee Structure & Schedules 16 E Conflicts of Interest 22 F Permits, Licenses & Insurance - Business Tax Certificate - Professional Licenses - Permits - Insurance Certificates - 23 G Attachments - Addendum #1 - Non-Collusion Affidavit - Workers Compensation Insurance Certificate - EEOC Certificate - Statement on Previous Contracts Subject to EEOC - ADA Compliance Certificate - Ownership Disclosure & Levine Act - Drug-Free Workplace Certification - Iran Contracting Act - Budgets - Pathway to profitability - Proposed Management Structure Fee 24 70
A&K Precision Management RFP# 24-25-02 February 5th, 2025 CONFIDENTIAL Page 4
(A) GENERAL INFORMATION Firm Name Address Telephone Number Email Address A&K Precision Management 11945 Avenue 274, Unit B Visalia, CA 93277 (559) 707-5286 [email protected] [email protected] Account Representatives For questions regarding this proposal: A&K Precision Management 11945 Avenue 274, Unit B Visalia, CA 93277 (559) 707-5286 [email protected] [email protected] For billing, pricing and other account information: A&K Precision Management 11945 Avenue 274, Unit B Visalia, CA 93277 (559) 707-5286 [email protected] [email protected] Type of Organization General Partnership Federal Tax ID # 85-3883391 Ownership Disclosure Form 100% owned and operated by Rost Management LLC (50%) and Arroyo Ag Advising (50%). Rost Management is 100% owned by Mr. Kevin Rost; Arroyo Ag Advising is 100% owned by Mr. Abel Arroyo. 71 A&K Precision Management RFP# 24-25-02 February 5th, 2025 CONFIDENTIAL Page 5
Personnel A&K employs a full-time, year-round staff of approximately 2 personnel, increasing at various times to between 40 and 70 personnel, based on the seasonal needs of our clients throughout the year, through long-standing relationships with subject-matter experts depending on the tasks required. See Section C: Staff Qualifications and Related Experience. References & Referrals Jeb Headrick Farming Campesinos Farm Labor Inc. Wilbur Ellis Apollo Ag Technology Faith Farms Services See Also Section C: References & Referrals Surety Information: General & Automotive Liability Workers Compensation General Liability See Section F: Permits, Licenses & Insurance

72 A&K Precision Management RFP# 24-25-02 February 5th, 2025 CONFIDENTIAL Page 6
(B) PROPOSED PROJECT APPROACH A&K will exercise good faith and utilize best judgment, in consultation with the City, to undertake on its behalf the duties and responsibilities to manage the property. We will use our best efforts to not incur excessive costs or expenses. We propose continuing the same approach to farming as to that provided by Jeb Headrick Farming since assuming the farm management role for these properties in March 2019. As we have been working with Jeb Headrick Farming on the subject property for the last 5 years, we are intimately familiar with the property’s characteristics and farming efforts required. Such continuity in farm practices will eliminate any surprises (cultural, financial) and maximize tree and soil health. Specifically, we would assume responsibility for and provide everything necessary to facilitate the successful management of the 445 acres of and pecans, including the following key areas and activities: We will continue to farm the property in a good, farmer-like manner in accordance with the usual standards of good farming and husbandry required. Specifically: 1. Water Management & Irrigation a. A&K will maintain and repair of all irrigation systems, sprinklers, pumps, reservoirs and the application of any chemicals required. b. Irrigation management will be based on orchard needs and include the following strategy: i. Water scheduling based on orchard needs; ii. Ensure micro-irrigation system is function at design specifications; iii. Irrigation scheduling based on stress-testing with pressure bombs. iv. Chemical shock treatments and hose chemical treatments for improved water quality in reservoirs and irrigation systems. v. Usage of technology such as, but not limited to, moisture probe software. 2. Pruning & Tree Maintenance a. A&K will maintain a tree management program to include: i. Pruning towers (machine), manual and electric pruning; ii. Hedging; iii. Stacking; iv. Chipping; v. Shredding brush; vi. Tying; vii. Installing and removing tree protectors viii. Suckering; ix. Removing excess tree weight: x. Installing and removing tree stakes as required; xi. Budding / grafting. 73 A&K Precision Management RFP# 24-25-02 February 5th, 2025 CONFIDENTIAL Page 7

3. Pest Control Management, Fertilizer and Chemical Application a. A&K will provide and apply all chemicals and fertilizers as required throughout the year. b. Spray strategy as follows: i. Engine-driven sprayers for maximum coverage to ensure control of targeted pests. ii. Pecans: 300 gallons / acre @ 2 mph. c. Weed strategy as follows: i. Spray weeds with boom sprayers to maximize herbicide efficacy. ii. Surgical spraying using new technology to target specific weeds that is expected reduce chemical expenses over a 5-year period by up to 50% (not reflected in year 1 budget). d. Mr. Jeb Headrick, as advisor to A&K, has long-standing and well-maintained relationships with senior administration officials at the local charter school which is in the vicinity of the subject property, Sycamore Valley Academy, so that spray applications are always performed with the utmost safety considerations in mind. 4. Harvest a. A&K will oversee the harvesting of pecans, including: i. Pre-harvest preparations; ii. Actual harvest, including arranging crews and equipment as required; iii. Daily on-site harvest supervision; iv. Transportation of harvested product to nut processors as agreed with the City of Visalia; v. Post-harvest clean-up and other related tasks. b. The costs associated with all harvest activities are not included in this proposal. A&K is happy to consult with the City of Visalia to review partner and cost options, and oversee all harvest activities once logistical decisions have been made by the City. 5. Farm Labor Management a. A&K will provide crews for all day-to-day farming tasks throughout the year including weeding, replanting, repairs, pest control, and all tasks required for the proper management and maintenance of the orchards. 6. Equipment a. A&K will provide all the equipment required to perform the farm management services, including mowing, discing, spraying, tractors, ATV’s, and trucks. 74 A&K Precision Management RFP# 24-25-02 February 5th, 2025 CONFIDENTIAL Page 8
b. A&K does not own any of its own cultural equipment. This allows us maximum flexibility in tailoring equipment specific to the needs of the orchard: the City of Visalia can be assured that only the most suitable equipment will be utilized. A&K’s ability to customize farm equipment and cross-utilize row-crop implements gives us an advantage over users of conventional orchard equipment given the wide tree spacing (35 feet) of the City of Visalia’s pecans to help control costs. 7. Regulatory Filings a. A&K will prepare and file all regulatory filings on behalf of the City of Visalia, including the Nitrogen Management Plan [the fees associated with NMP submissions are not included in the budget and are the direct responsibility of the City of Visalia). 8. Stewardship a. A&K will implement best practices regarding sustainability and ecology for the long-term health of the land under our farm management through water conservation and adoption of materials such as bio pesticides that are less impactful. b. A&K proposes partnering with the City of Visalia, always in the context of economic sensibilities, to promote positive, regenerative farming techniques and eliminate any negative perceptions around farming through education and bridging the gap between farm science and public perception. c. Mr. Kevin Rost and Mr. Abel Arroyo, as owner-operators of A&K will personally manage the Company’s activities, on-site, to ensure that the City of Visalia’s needs are met, and goals are achieved to the highest degree of quality and results. The following imagery shows the number of times the owners of A&K were on-site in 2024:
75 A&K Precision Management RFP# 24-25-02 February 5th, 2025 CONFIDENTIAL Page 9

9. Technology (Examples) a. A&K will be using electrostatic sprayers for maximum spray efficacy and reduced chemical costs. This technology improves the efficacy – and lowers the cost – of services provided, not only to increase productivity but also to offset the rising cost of inputs such as labor and chemicals. b. Water management software. c. Weather station technology. d. Soil mapping technology. e. Digital reporting. 76 A&K Precision Management RFP# 24-25-02 February 5th, 2025 CONFIDENTIAL Page 10
Before: Broken limbs, heavy weeds
After: Robust tree health; heavy crop set and yields

77 A&K Precision Management RFP# 24-25-02 February 5th, 2025 CONFIDENTIAL Page 11
Services Included in Proposal The following services and activities are included in this proposal and specifically the budget in Section D: - The application of pesticides, rodenticides, herbicides, fungicides, and other chemicals as needed. - Operation of the City of Visalia’s irrigation system on the subject properties. - Irrigation of the subject properties, including coordination with the Wastewater Plant and/or Water District. - General upkeep of the subject properties. - Harvesting, dehydrating of the crops. - Coordinating and ordering of new trees. - Planting of new trees, young tree training, budding, tipping, and tying mature tree pruning, stacking and disposing of brush, dead tree removal and replanting. - Regular fertilizing and application of nutritional sprays and soil amendments. - Assisting the City of Visalia with general decisions about the property. - Other duties as generally required to manage the farming operations. Affiliated Entities A&K may engage in the services of two affiliated entities to fulfill the services under this proposal. Both entities are owned 100% by the owners of A&K, and provide services to unrelated third parties under custom farming agreements: Rost Management LLC Owned 100% by Mr. Kevin Rost. Provides farm management, irrigation management and compliance services to commercial clients. Arroyo Ag Advisors Owned 100% by Mr. Abel Arroyo. Provides Pest Control Advisory (PCA), Agronomy and Farm Business Development services to commercial clients. No Financial or Beneficial Interest in Crop A&K confirms, by submission of this proposal, that it retains no financial or beneficial interest in the crop produced on the subject properties, and that all revenue received from the sale of the crops shall be payable directly to the City of Visalia. 78 A&K Precision Management RFP# 24-25-02 February 5th, 2025 CONFIDENTIAL Page 12
Services Excluded from Proposal The following services and activities are not included in this proposal, the costs for which are assumed to be the responsibility of the City of Visalia. A&K is willing to discuss whether or not it is appropriate for the City of Visalia to transfer responsibility for these activities to A&K, but for clarity’s sake, the cost for the provision of these activities is not included in this proposal: - Access to, and usage of, affluent water from the City of Visalia Wastewater Treatment Plant. - Access to, and usage of, water wells and various booster pumps on site (A&K and the City of Visalia shall determine the number of wells available for use based on the acres in production). - Payment of water assessments. - Payment for water, including district water costs, well pumping costs, booster pumping costs, including the provision of electric or power generators, if required. - Payment of electric bills for water pumps (well and booster). - Payment of property taxes. - Payment for trees to establish new or replacement plantings, if required. - Regulatory fees associated with Nitrogen Management Plan (NMP) and other regulatory filings. - Sale of crops (A&K will consult with City of Visalia to identify post-harvest handlers to market and sell the City of Visalia’s crops, proceeds for which will be remitted directly to the City of Visalia). Client Meetings A&K will host regularly scheduled meetings with the City of Visalia’s designated representative, on a monthly basis (or as frequent as the City chooses) to review: - Orchard Maintenance - Tree Health - Harvest and Post-Harvest Strategies - Crop Returns & Profitability - Tree Replacement & Planting Strategies - Budget and Projected Costs - Pecan Market Updates - Trends and Developments in Overall Agricultural Industry. 79 A&K Precision Management RFP# 24-25-02 February 5th, 2025 CONFIDENTIAL Page 13
Harvest & Post-Harvest Recommended Activities A&K and the City of Visalia’s representative will discuss harvest and post-harvest strategies for the pecan crops. A&K understands that the pecan crop is being handled by HNH Nut Company (31881 Road 160, Visalia CA 93292). Based on past performance, but dependent on review and cost considerations, discussion with and approval from the City of Visalia, A&K recommends HNH Nut Company to continue for the contract period as handler for the City of Visalia’s pecan crops harvested from the subject acreage. A&K maintains positive relationships with other potential buyers in case the City’s relationship with HNH Nut Company deteriorates or fails to meet the City’s and A&K’s mutual expectations. 80 A&K Precision Management RFP# 24-25-02 February 5th, 2025 CONFIDENTIAL Page 14
(C) STAFF QUALIFICATIONS & RELATED EXPERIENCE A&K manages over 2,000 acres of permanent crops in the Visalia area. The owners of A&K Precision Management are: Mr. Kevin Rost • Born in Hanford, CA • Resident of Visalia, CA • PCA License # 145507 QAL#135389 • Senior Partner, Crop Production Manager, Irrigation Consultant, Business Advisor • MBA with an emphasis on Regenerative Agriculture and Sustainability • BS – Regenerative Agriculture and Sustainability • AS – Plant Science and Precision Agricultural • 15 years’ experience as a Farm Manager, Crop Consultant, Irrigation Consultant, Business Advisor, Community Development Ambassador, and Urban Agriculture Business Consultant. Mr. Abel Arroyo, Pest Control Advisor - Born in Hanford, CA - Resident of Coalinga, CA - Agronomist, CCA CDFA # 215727,PCA # 142468,Categories ABCDEF - Senior Partner/Crop Production Manager - CSU Fresno B.S Crop Production Management - WHC Coalinga A.S Agricultural Sciences & Technology - WHC Coalinga A.S Agricultural Plant Sciences - Cal Polytechnic Advance Irrigation & Design BREA Certified - ESRI Global Advance Geospatial Certified - Class A License with all endorsements - 19 years’ experience Specialty Crop Advisor on Horticultural Environment, Ag Crop Sciences, Ag Production Sciences, Ag Production Systems. As owner-operators, Mr. Rost and Mr. Arroyo will be responsible for all day-to-day activities on the subject properties, and will be the City’s primary points of contact on all matters. A&K will be contracting certain labor activities through Jeb Headrick Farming – a strategic decision to provide key cultural continuity on the subject properties. For example, all irrigation and fertilizer applications will be overseen, under Mr. Rost and Mr. Arroyo’s direction, by Mr. Esteban Negrete, who has been the lead irrigator on the subject properties since 2019. 81 A&K Precision Management RFP# 24-25-02 February 5th, 2025 CONFIDENTIAL Page 15
REFERENCES & REFERRALS A&K provides the following references for whom it currently provides custom farming services on over 2,000 acres, including: Steve Ozuna Harris Farms 17,000 acres of Pistachios, Almonds, Row Crops Illume Agriculture 10,000 acres of Almonds, Grapes Don Headrick Self 1,000 acres of Pistachios, Almonds and Forage City of Visalia City of Visalia 445 acres of Walnuts & Pecans David Soults 300 acres of Pistachios Doug Anderson Self 250 acres of Pistachios West Hills College 230 acres of Pistachios & Row Crops Mario Semios MS3 – Dairy 75 acres of Pistachios Additional references include the following: Blake Houston Owner of HNH Nut Company Telephone numbers will be made available upon request. “Over the last two years, the City of Visalia’s pecans have been the highest quality product out of all 79 growers for whom we market.” - Blake Houston, Owner HNH Nut Company RELATED EXPERIENCE As aforementioned, A&K Precision Management has been contracted by Jeb Headrick Farming for the farm management and crop production of the subject properties since March 2019 and under Mr. Headrick’s direction provides Farm Management Services on behalf of JHF to the City of Visalia. 82 A&K Precision Management RFP# 24-25-02 February 5th, 2025 CONFIDENTIAL Page 16
(D) PROPOSED FEE STRUCTURE & SCHEDULES A&K Precision Management proposes an annual budget for services and responsibilities outlined under this proposal of $1,351,296, including harvesting costs, as follows:

This budget assumes the responsibilities as outlined in Section B. If the City of Visalia and A&K determine that it is necessary to amend the scope of services for which A&K will be responsible for, then the above budget will be amended to mutually-agreed levels. The budget is intended to be a guideline for the City of Visalia and not a ‘Not-to-Exceed’ number. For example, from time to time, A&K may identify needed but unbudgeted activities (for example, additional sprays in response to higher than expected pest pressure) that will result in additional costs. In such events, A&K will discuss the costs and risks with the City of Visalia’s representative before proceeding with the activity following the City of Visalia’s approval. Such activities may (or may not) result in an overall ‘budget variance’. Further budget variances may arise due to the volatility of input costs for such items as diesel, chemicals and fertilizer. Harvesting, hulling and processing costs will be variable based on the size of the crop harvested. The amounts included in the project budget are based on projected yields; actual yields (and therefore costs) will vary. 83 A&K Precision Management RFP# 24-25-02 February 5th, 2025 CONFIDENTIAL Page 17
2025 Management Fees A&K’s bid includes the following management fees for 2025, as follows: Per Acre Per Month Total Per Acre Total $ Management Fee $16.50 $198 $88,110 PCA Consulting Fee $2.00 $24 $10,680 TOTAL $18.50 $225 $98,790 To offset inflationary costs, A&K proposes an annual increase on the engagement anniversary, equal to the lesser of (a) 3.00% or (b) the annual cost of living increase as per the Bureau of Labor Statistics for West Urban Region B/C. Labor Rates The annual budget includes the following hourly costs for labor provided: General Farm Labor $25.50/ hour Machine Hedging $240/ hour Manual Pruning $28.75/ hour Electric Pruning $36.22/ hour (includes cost of pruning tool) Farm labor will be provided by Campesinos Farm Labor Contracting, Inc. Section F (Permits, Licenses and Insurance) includes documentation relating to Campesinos for the City’s review. Rates are inclusive of regulatory taxes and insurance. The City of Visalia can be assured that A&K will pass labor costs through at cost, without markup. 84 A&K Precision Management RFP# 24-25-02 February 5th, 2025 CONFIDENTIAL Page 18
Equipment Rates The above budget includes the following general services and equipment rates, including labor. Items marked with an asterisk (*) do not include labor, which will be billed separately based on actual hours worked. We intend to bill work in line with the category calendar budget attached. Activities Charged by the Acre (if needed): Activity Rate Per Discing – 1 pass Discing – 2 passes Float – 1 pass Mower – 2 passes Mower – 1 pass Mulcher Ripping – 1 pass Ripping – 2 passes Round Harrow Spring tooth (Kubota) – 1 pass Spring tooth (Kubota) – 2 passes Weed Spraying w/ Boom Sprayer (Kubota) Planter (Cover Crop) Dry Fertilizer/Amendment Application $21 $37 $22 $27 $16 $22 $22 $33 $19 $19 $33 $27 $22 $22 Acre Acre Acre Acre Acre Acre Acre Acre Acre Acre Acre Acre Acre Acre Activities Charged by the Hour (if needed):

The City of Visalia will be billed based on actual hours or acres worked at the above rates.

Activity Rate Per 105 w/ tractor-trailer to drop stakes Backhoe Backpack Sprayer* Bubble tank Chainsaw* Checking Sprinklers w/ van or truck Flat Roller Forklift Gophers Loader w/ Spade Quad / ATV / RTV Scraping Driver Delivery – Equipment Trailer Driver Delivery - Pickup Tractor 105 Kubota Tractor 105 Kubota + Batch Mixer or Bubble Tank Truck + Batch Mixer or Bubble Tank Water Truck Weed Spraying (spot) – Small Tractor (blue) Foreman Oversight (day or nightwatch) $82 $82 $11 $22 $16 $27 $27 $38 $22 $109 $27 $65 $60 $60 $82 $82 $60 $82 $67 $55 Hour Hour Hour Hour Hour Hour Hour Hour Hour Hour Hour Hour Hour Hour Hour Hour Hour Hour Hour Hour 85 A&K Precision Management RFP# 24-25-02 February 5th, 2025 CONFIDENTIAL Page 19
Chemical Applications A&K’s proposed budget includes the following costs for fertilizer, nutrient sprays, soil amendments and chemical (pesticide, herbicide, fungicides and rodenticides) applications: Per Acre Fertilizer, Nutrient Sprays & Soil Amendments Chemicals & Application Equipment Cost Pecans $488 $902 The budget includes the cost of material and application. Included in this section is A&K’s proposed schedule, which outlines by month each application and its budgeted cost. Changes in the acquisition cost of materials (up or down) will result in budget variances, which A&K cannot predict at this time. A&K will not markup the cost of chemicals to the City of Visalia. Canopy Orchard Spraying Per acre rates for canopy orchard spraying (insecticides and nutrients) will be as follows:

Harvesting and Dehydrating A&K’s proposed budget includes the following costs for harvest and post-harvest handling of walnuts and pecans. This is provided for guidance only: A&K will provide guidance and recommendations to the City of Visalia as to harvest strategy. Per Acre Pecans Harvest / Post-Harvest $726 / acre The budget assumes 2,000 lbs/acre of pecans. Actual costs will vary based on actual volume harvested and the number of picks required. The budget assumes 1 pick for pecans. 100 200 250 300 400
MPH

2.00 53.00$ 55.00$ 60.00$ 65.00$ 70.00$

2.50 45.00$ 50.00$ 55.00$ 60.00$ 65.00$

3.00 39.00$ 48.00$ 53.00$ 58.00$ 63.00$ Subtract $2.00 for every increase of 0.5 mph
Add $1.00/acre for sonar sprayer
Application Rate (Gallons per Acre)
Price per Acre
86 A&K Precision Management RFP# 24-25-02 February 5th, 2025 CONFIDENTIAL Page 20
Billing and Payment A&K proposes billing the City of Visalia based on the following schedule: Date Amount Due 01/01/25 1/12th of Approved Budget 01/31/25 02/01/25 2/12th of Approved Budget Plus Additional Amount Due / (Credit) from Prior Months’ Under / (Over) Billing; Less Amounts Previously Paid 02/28/25 03/01/25 3/12th of Approved Budget Plus Additional Amount Due / (Credit) from Prior Months’ Under / (Over) Billing; Less Amounts Previously Paid 03/31/25 04/01/25 4/12th of Approved Budget Plus Additional Amount Due / (Credit) from Prior Months’ Under / (Over) Billing; Less Amounts Previously Paid 04/30/25 05/01/25 5/12th of Approved Budget Plus Additional Amount Due / (Credit) from Prior Months’ Under / (Over) Billing; Less Amounts Previously Paid 05/31/25 06/01/25 6/12th of Approved Budget Plus Additional Amount Due / (Credit) from Prior Months’ Under / (Over) Billing; Less Amounts Previously Paid 06/30/25 07/01/25 7/12th of Approved Budget Plus Additional Amount Due / (Credit) from Prior Months’ Under / (Over) Billing; Less Amounts Previously Paid 07/31/25 08/01/25 8/12th of Approved Budget Plus Additional Amount Due / (Credit) from Prior Months’ Under / (Over) Billing; Less Amounts Previously Paid 08/31/25 09/01/25 9/12th of Approved Budget Plus Additional Amount Due / (Credit) from Prior Months’ Under / (Over) Billing; Less Amounts Previously Paid 09/30/25 10/01/25 10/12th of Approved Budget Plus Additional Amount Due / (Credit) from Prior Months’ Under / (Over) Billing; Less Amounts Previously Paid 10/31/25 11/01/25 11/12th of Approved Budget Plus Additional Amount Due / (Credit) from Prior Months’ Under / (Over) Billing; Less Amounts Previously Paid 11/30/25 12/01/25 12/12th of Approved Budget Plus Additional Amount Due / (Credit) from Prior Months’ Under / (Over) Billing; Less Amounts Previously Paid 12/31/25

87 A&K Precision Management RFP# 24-25-02 February 5th, 2025 CONFIDENTIAL Page 21
Payment Terms will be Net 30. Invoices will be accompanied by backup documentation supporting all itemized charges. If the City and A&K agree to modify the approved budget, A&K will modify the monthly invoices accordingly. All invoices will be payable to A&K Precision Management. Reporting On a quarterly basis (following June 1st, September 1st, and December 1st), A&K will provide the City of Visalia with a detailed report comparing actual costs incurred to-date against budget, together with projected costs yet to be incurred over the remainder of the contract period (year), in order to determine whether it will be necessary to adjust the budget for the remainder of the contract period (year). Mr. Rost & Mr. Arroyo will meet with the City of Visalia’s representative, at least once a quarter, to review these progress reports for decision-making purposes. Any adjustment to the budget will be subject to review and approval by the City of Visalia before formal adoption. Following the harvesting of the crops and as soon as practical following the sale of the crops by the post-harvest marketers, A&K will provide the City of Visalia with a profit and loss report for the pecan crop, by block. To assist in these efforts, the City of Visalia will authorize the post-harvest marketers to provide the necessary sales information to A&K, where required. 88 A&K Precision Management RFP# 24-25-02 February 5th, 2025 CONFIDENTIAL Page 22
(E) CONFLICTS OF INTEREST A&K Precision Management, as a Company, and Mr. Kevin Rost and Mr. Abel Arroyo, individually, hereby do certify that: 1) They do not have any financial, business, or other relationship with the City or any member of City staff that may have an impact on the outcome of the project. 2) They do not have any current clients who has a financial interest in the outcome of the project. 89 A&K Precision Management RFP# 24-25-02 February 5th, 2025 CONFIDENTIAL Page 23
(F) PERMITS, LICENSES & INSURANCE Insurance certificates for A&K Precision Management will be provided upon successful award. 90 A&K Precision Management RFP# 24-25-02 February 5th, 2025 CONFIDENTIAL Page 24

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(G) ATTACHMENTS: - Pesticide Budget Monthly - Amendment and Fertilizer Budget Monthly - Pathway to profitability 102
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PROPOSED MANAGEMENT FEE STRUCTURE Provided to City of Visalia From A&K Precision Management Per Acre Per Month (445 acres) Per Acre, 2025 Total Annual $ Farm Management $16.50 $198 $88,110 PCA Consulting Fee $2.00 $24.00 $10,680 TOTAL $18.50 $225 $98,790 The above rates are effective January 1st, 2025. Fees for 2026 and beyond are subject to change based on the lesser of (a) 3.00% and (b) the annual cost of living increase as per the Bureau of Labor Statistics for West Urban Region B/C. Mr. Kevin Rost Mr. Abel Arroyo Owner-Operator Owner-Operator 106
Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 25-0018 Agenda Date: 3/3/2025 Agenda #: 3.

Agenda Item Wording:

Cannabis Business Update - Provide staff direction on potential next steps pertaining to the authorization of Cannabis Businesses in the City of Visalia and depending upon the option selected, amend the contract, and appropriate $5,000 from the General Fund.

Deadline for Action: 3/3/2025
Submitting Department: Community Development
Contact Name and Phone Number:

Devon Jones, Economic Development Manager, [email protected] <mailto:[email protected]>, (559) 713-4190
Department Recommendation:

Receive the staff report and presentation and authorize staff to proceed with one of three potential courses of action:

1. Proceed with drafting a cannabis business ordinance for adoption and during the adoption process set the number of businesses permitted to operate in the City of Visalia to zero effectively establishing the regulatory framework for such businesses but not yet permitting such businesses to operate within the City.
a. This would require a contract amendment for an additional $17,050 due to $7,550 remaining on the current contract. Actual cost is dependent on in person attendance required of HdL consultant for any City Council meetings.

2. Proceed with drafting a cannabis business ordinance and potentially allowing such businesses to operate within the City upon adoption of the ordinance. a. This would require a contract amendment for an additional $17,050 due to $7,550 remaining on the current contract. Actual cost is dependent on in person attendance required of HdL consultant for any City Council meetings.

3. Do not proceed with drafting a cannabis business ordinance and instead acquire cannabis ordinance examples and a conceptual work plan from HdL for potential use at a later time. a. This approach should not require an amendment to the existing service contract.

Staff is also proceeding with assistance from HdL to determine an appropriate apportionment formula and policy to collect any such voter approved taxes on cannabis deliveries currently coming into the City from businesses located outside of the City. HdL will also assist in identifying potential businesses that may be making such deliveries.

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Summary:

In November 2024, voters of the City of Visalia voted to approve Measure O, the City’scannabis tax measure, with an approval rate of 70.7%. Major elements of the cannabis business tax ordinance include:
· The Cannabis Business Tax is a general tax enacted solely for general, governmental purposes of the city and not for specific purposes. All of the proceeds from the tax imposed shall be placed in the city's general fund and be available for any lawful city purpose. · The maximum tax rate is ten percent (10%) of gross receipts. o The actual tax rate can be set lower by Council, at a later date, and vary by industry segment.
· Taxes are to be remitted monthly.
· Audits will be allowed by the city or third-party designee. · Personal cultivation for personal consumption is not subject to the tax. · The option for a tax rate per square footage for cultivation businesses should the Council later decide to allow, or the state mandate that the city allow cultivation type businesses as well as retail.

Passage of the local tax measure does not legalize other types of cannabis sales to operate in the City of Visalia (beyond “deliveryonly”of medicinal only cannabis businesses which are now required to be permitted in the City by State law, SB 1186, subject to reasonable zoning regulations). The tax measure only authorizes the City of Visalia to collect additional tax revenue from cannabis sales that state law has authorized to be conducted in Visalia (such as “delivery only” of medicinal only cannabis) or if the City Council, at a later date, decides to permit other forms of cannabis businesses to operate within the City.

The City has an existing service agreement with HdL Companies that included assisting with the preparation of the local tax measure but also includes identifying potential revisions to cannabis regulations in Visalia, or drafting a new regulatory framework for cannabis business operations so the City would be ready in the event additional state mandates prevent local agencies from restricting other types of cannabis businesses, or should the Council later decide to permit such businesses to operate in Visalia, subject to a new ordinance that regulates cannabis businesses. There is $7,550 remaining in the original contract that Council authorized for a total contract not to exceed $35,000 for the project, which equates to another $17,050 amendment to the contract (total new scope of work is $24,600). Depending on direction provided by Council, staff is requesting an amendment to the contract of $17,050 for estimated costs associated with establishing the regulatory framework for cannabis businesses, whether allowing such businesses to operate upon adoption of the ordinance or not allowing such businesses at that time.

Staff is seeking Council direction on next steps pertaining to their potential services and Cannabis business operations within the City of Visalia. In order to best leverage the services of HdL, staff recommends either proceeding with drafting a cannabis business ordinance but initially setting the number of businesses permitted to operate in Visalia to zero; effectively establishing the regulatory framework for such businesses but not yet permitting such businesses to operate within the City. A second consideration for Council would be to direct the drafting of a cannabis business ordinance and permitting such businesses to operate within the City upon adoption of the ordinance. Doing either allows staff to utilize HdL’sassistance and technical expertise to see the process completed effectively but leaves it up to Council as to when to begin allowing cannabis businesses to operate Visalia City Council Printed on 2/28/2025Page 2 of 6
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effectively but leaves it up to Council as to when to begin allowing cannabis businesses to operate within the City. Additionally, establishing the regulatory framework positions the City to be “readily” responsive in the event the State mandates local jurisdictions to permit additional types of cannabis business operations within the City through changes in State law.

Background Discussion:

Senate Bill (SB) 1186, the “MedicinalCannabis Patients’Right of Access Act”was signed into law in late 2022. This state law, which became effective on January 1, 2024, prohibits local agencies from enforcing any local regulations that prohibit the retail sale by delivery of medicinal cannabis. After this date, “delivery only” (i.e., delivery of medicinal cannabis) businesses are 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 (i.e., no retail store front).

On July 17, 2023, Council authorized staff to initiate a zoning ordinance update to implement reasonable zoning regulations in response to SB 1186. On November 20, 2023, Council conducted the second reading and adoption of Ordinance No. 2023-13 for Zoning Text Amendment No. 2023- 02, a request by the City of Visalia to amend Visalia Municipal Code Chapter 17.25, add Section

17.32.167, amend Chapter 8.64, and add Chapter 5.66 in order to address upcoming state mandated changes as a result of the passage of SB 1186, and to establish objective standards for permitting delivery only medical marijuana retail establishments within the City of Visalia. To date, staff is aware of one such business interested in Visalia, but none are currently operating. There have been multiple inquiries from businesses that would be interested in operating as storefront retail cannabis operators.

Also on July 17, 2023, Council authorized staff to hire a consultant through sole source contract process to assist staff with the preparation of a potential local tax measure specifically for cannabis sales for the 2024 general election and to identify potential revisions to cannabis regulations in Visalia so the City would be ready in the event additional state mandates prevent local agencies from restricting other types of cannabis businesses, or should the Council later decide to permit such businesses to operate in Visalia.

In November 2023, Council authorized the City Manager to award a contract to HdL Companies for an amount not to exceed $35,000, , and a contract to Fairbank, Maslin, Maullin, Metz & Associates (FM3 Research) for an amount not to exceed $39,500, . In addition, a contract was issued to Tripepe Smith for outreach. The project total budget was $85,000 from the General Fund. FM3 Research was tasked specifically with public opinion research to inform the potential local tax measure efforts and HdL Companies was tasked with the development of the tax measure.

FM3 Research presented their survey findings on May 6, 2024 and identified, among other things, that the majority of Visalia residents support allowing cannabis businesses to operate in Visalia and support the passage of a local tax measure on cannabis businesses. Council then authorized staff to continue working with HdL on the preparation of the tax measure materials and to appropriate an additional $20,000 from the General Fund for the development of informational materials for the potential tax measure. This brought the total project to $105,000 ($85,000 + $20,000). A copy of FM3 Research’s report of findings is attached.

HdL Companies conducted their initial presentation to Council on May 20, 2024 to gather input to prepare the draft business tax ordinance that was adopted on June 17, 2024. The first reading of this ordinance was conducted on June 3, 2024 and adopted on June 17th. On June 3rd, Council also adopted Resolution 2024-24 to place a cannabis tax measure on the November 2024 general Visalia City Council Printed on 2/28/2025Page 3 of 6
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adopted Resolution 2024-24 to place a cannabis tax measure on the November 2024 general election ballot.

Apportionment:

There is a section in the Cannabis Tax Ordinance, that could potentially yield tax revenues now (upon establishing the policy and internal procedures) on deliveries into Visalia from dispensaries located outside of Visalia. This is covered under the “Apportionment” section that states the following:

3.14.170 Apportionment.

If a person subject to the tax is operating both within and outside the City, it is the intent of the City to apply the cannabis business tax so that the measure of the tax fairly reflects the proportion of the taxed activity actually carried on in the City. To the extent federal or state law requires that any tax due from any taxpayer be apportioned, the taxpayer may indicate said apportionment on his or her tax return. The Tax Administrator may promulgate administrative procedures for apportionment as he or she finds useful or necessary.

To fully implement this provision, staff needs to determine an appropriate apportionment formula for businesses located outside of Visalia but making deliveries in Visalia and establish a policy. Staff also needs to determine potential businesses this should apply to in order to pursue compliance. HdL, City staff, and the City Attorney’s Office are currently working to develop this type of process.

Fiscal Impact:

HdL’scontract currently has $7,550 remaining and would require an amendment to their contract of $17,050 to prepare a cannabis ordinance for a total of $24,600. This capital project has $23,000 remaining in the budget and will require an additional appropriation of $1,600 if approved by Council.

To ensure there is sufficient funds for any unexpected items, staff is requesting an additional $3,400 bringing the total additional appropriation to $5,000.

Prior Council Action:
· On July 15, 2024, Council adopted an amended Resolution 2024-24 to place a cannabis tax measure on the November 2024 general election ballot.
· On June 17, 2024, Council conducted the second reading and adoption of Ordinance No. 2024-06, adding Chapter 3.14 (Cannabis Business Tax) to Title 3 of the Visalia Municipal Code to establish a tax on cannabis business activities within the city. · On June 3, 2024, Council conducted the first reading of Ordinance No. 2024-06, adding Chapter 3.14 (Cannabis Business Tax) to Title 3 of the Visalia Municipal Code to establish a tax on cannabis business activities within the city and adopted Resolution 2024-24 to place a cannabis tax measure on the November 2024 general election ballot. · On May 20, 2024, Council authorized staff to present an ordinance to include a local cannabis tax measure for voter consideration on the Tulare County November 2024 General Election ballot.
· On May 6, 2024, Council authorized staff to continue working with HdL to develop a local cannabis tax measure and ballot language to be included on the November 2024 ballot and appropriated $20,000 from the general fund for the development of tax measure informational materials.
· On November 20, 2023, Council conducted the second reading and adoption of Ordinance No. 2023-13 for Zoning Text Amendment No. 2023-02, a request by the City of Visalia to Visalia City Council Printed on 2/28/2025Page 4 of 6
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File #: 25-0018 Agenda Date: 3/3/2025 Agenda #: 3.

No. 2023-13 for Zoning Text Amendment No. 2023-02, a request by the City of Visalia to amend Visalia Municipal Code Chapter 17.25, add Section 17.32.167, amend Chapter 8.64, and add Chapter 5.66 in order to address upcoming state mandated changes as a result of the passage of SB 1186, and to establish objective standards for permitting delivery only medical marijuana retail establishments within the City of Visalia. · On November 11, 2023, Council authorized the City Manager to award a contract to HdL Companies for an amount not to exceed $35,000, with a total budget of $40,000. · On November 6, 2023, the City Council authorized the City Manager to award a contract to FM3 Research for an amount not to exceed $39,500, with a total budget of $45,000. · On July 17, 2023, Council directed staff to initiate a zoning ordinance update to implement reasonable zoning regulations in response to SB 1186 and hire a consultant, via a sole source contract, to assist staff with the preparation of a potential tax measure specifically for cannabis sales for the 2024 general election and to identify potential revisions to cannabis regulations in Visalia.

Other: N/A
Alternatives: The City Council may, in lieu of one of the staff recommendations continue this discussion to a future meeting date.

Recommended Motion (and Alternative Motions if expected):

I move to receive presentation and authorize staff to: (select one, or a Council identified alternative)

1. Proceed with drafting a cannabis business ordinance for adoption and during the adoption process set the number of businesses permitted to operate in the City of Visalia to zero effectively establishing the regulatory framework for such businesses but not yet permitting such businesses to operate within the City, and amend the existing contract with HdL to include the additional scope of work totaling $24,600 and appropriate an additional $5,000 from the General Fund.

2. Proceed with drafting a cannabis business ordinance and potentially allowing such businesses to operate within the City upon adoption of the ordinance, and amend the existing contract with HdL to include the additional scope of work totaling $24,600 and appropriate an additional $5,000 from the General Fund..

3. Do not proceed with drafting a cannabis business ordinance and instead acquire cannabis ordinance examples and a conceptual work plan from HdL for potential use at a later time.

Environmental Assessment Status: The staff report is exempt from California Environmental Quality Act, Public Resources Code Sections 21000 et seq. (“CEQA”)and 14 Cal. Code Re. Sections 15000 et seq. (“CEQA Guidelines”). N/A
CEQA Review: This item is exempt from the California Environmental Quality Act, Public Resources Code Sections 21000 et seq. (“CEQA”)and 14 Cal. Code Re. Sections 15000 et seq. (“CEQA Guidelines”).The analysis conducted is not for any particular project or action that would result in a potentially significant physical impact on the environment.

Attachments:

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1. HdL executed service contract

2. Visalia Cannabis Tax Ordinance

3. Ordinance No. 2023-13

4. FM3 Research report
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Visalia Voter Attitudes Toward
a Proposed Cannabis Measure
Key Findings of a Citywide Survey Conducted March 12-18, 2024 220-7065
113
2 Dates March 12-18, 2024
Survey Type Dual-mode Voter Survey
Research Population Likely November 2024 Voters in Visalia Total Interviews 688
Margin of Sampling Error (Full Sample) ±4.4% at the 95% Confidence Level (Half Sample) ±5.7% at the 95% Confidence Level
Contact Methods
Data Collection Modes
Survey Tracking 2015 and 2016
Languages English and Spanish
(Note: Not All Results Will Sum to 100% Due to Rounding) Text
Invitations
Telephone
Calls
Email
Invitations
Telephone
Interviews
Online
Interviews
Survey Methodology
114
3 Issue Context
115
4 Q. Would you say that things in the City of Visalia are generally headed in the right direction or do you feel that things are off on the wrong track? A majority feel positively about the direction of
the city, but the mood has worsened since 2016.
50%
67%
65%
18%
18%
15%
32%
14%
20%
2024
2016
2015
Right Direction Don't Know/Refused/Mixed Wrong Track
116
5 Q. In your personal opinion, do you think the City of Visalia has a great need for additional funding, some need, a little need, or no real need for additional funds to provide the level of City services that Visalia residents need and want? 43%
25%
31%
36%
9%
16%
10%
17%
7%
6%
2024
2015
Great Need Some Need A Little Need No Real Need Don't Know Great/
Some
Need
A Little/
No Real
Need
74% 19%
61% 32%
Nearly three quarters perceive a
need for funding for city services.
117
6 Q.

Yes
29% No
35%
Don't Know/
Refused
36%
Most are unaware that it is currently
illegal to sell cannabis products in Visalia.

Now changing topic slightly. As far as you know,
is it legal to sell cannabis products in the City of Visalia? 118
7 36%
35%
29%
26%
27%
28%
9%
7%
10%
26%
25%
29%
6%
Allowing businesses to sell
cannabis products
Allowing facilities to test
cannabis products
Allowing facilities to
manufacture cannabis products
Strng. Supp. Smwt. Supp. Smwt. Opp. Strng. Opp. Don't Know Total Supp.

Total
Opp.
62% 35%
62% 32%
57% 39%
A majority support allowing cannabis-related
businesses to operate in Visalia.

Q. I am now going to mention various cannabis related businesses. Please tell me if it sounds like something you would support or oppose in the City of Visalia. Any of these potential uses may also be subject to regulations the City can make such as location or hours of operation, and may include related fees.
(Ranked by Total Support)
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8 Introducing the Measure
120
9 Ballot Language
Q. Based on this description, would you vote yes or no on this measure? Split Sample With Mandate No Mandate
Shall the measure to fund, for general
governmental uses, services such as:
maintaining emergency response times;
supporting youth programs; helping attract
businesses; cleaning public areas;
addressing homelessness; by taxing cannabis
businesses’ gross receipts not exceeding 10%
on retail, delivery, manufacturing/testing;
raising approximately $1,000,000 annually,
requiring spending disclosures, and which
would only be levied if state law imposes
mandates or the city approves an ordinance
allowing such businesses, lasting until ended
by voters, be adopted?
Shall the measure to fund, for general
governmental uses, services such as:
maintaining emergency response times;
neighborhood police patrols;
supporting youth programs; helping retain
and attract businesses; keeping public
areas safe and clean;
addressing homelessness; by taxing
cannabis businesses’ gross receipts not
exceeding 10% on retail, delivery,
manufacturing, and testing;
raising approximately $1,000,000 annually,
until ended by voters, requiring audits,
spending disclosures, and that cannabis
businesses follow public health and safety
requirements, be adopted?
121
10 Q. Based on this description, would you vote yes or no on this measure? Split Sample Initial Vote
(With Mandate)
Initial Vote
(No Mandate)
42%
20%
4%
3%
6%
18%
7%
43%
19%
5%
2%
8%
20%
3%
Definitely yes
Probably yes
Undecided, lean yes
Undecided, lean no
Probably no
Definitely no
Undecided
Total
Yes
66%
Total
Yes
67%
62% 62%
Total
No
27%
Total
No
30%
Two-thirds support the proposed measure, both with
and without mention of a state or local mandate.
(Each Measure - M.O.E=±5.7%)
122
11 63%
69% 69%
63%
69%
32%
25% 28%
35%
25%
5% 6% 4% 2% 6%
1 2 3 4 5
Total Yes Total No Undecided
Majority support cuts across the
City’s Council Districts.
(% of
Sample) (22%) (23%) (23%)
Initial Vote by City Council District
(17%)
Q Combined. Based on this description, would you vote yes or no on this measure? (15%)
123
12 Those who perceive a need for funding are more
likely to vote “yes” than those who do not.

Q Combined. Based on this description, would you vote yes or no on this measure? 75%
68% 72%
48%
57%
20%
26% 23%
51%
33%
5% 6% 5% 1%
10%
Great
Need
Some
Need
Great/
Some Need
A Little/
No Real Need
Don't
Know
Total Yes Total No Undecided
(% of
Sample) (43%) (74%) (19%)
Initial Vote by Need for Funding
(31%) (7%)
124
13 Priority Features
of the Measure
125
14 69%
68%
61%
60%
54%
59%
50%
22%
23%
28%
29%
32%
25%
35%
6%
7%
8%
11%
11%
10%
12%
^Addressing homelessness
Maintaining emergency response times
Keeping public areas safe and clean
Preventing property crime
Cleaning up public areas
Increasing gang prevention programs
Maintaining city services
Ext. Impt. Very Impt. Smwt. Impt. Not Too Impt. Don't Know Ext./Very Impt.
92%
91%
89%
88%
87%
85%
85%
Q. The proposed ballot measure you considered earlier has not yet been finalized. Now I’m going to read you a list of services, infrastructure projects and provisions that could be included in this measure. Please tell me how important that service, infrastructure project or provision is to you personally:

Is it extremely important, very important, somewhat important, or not too important? ^Not Part of Split Sample Addressing homelessness, maintaining emergency response times and keeping public areas safe and clean are the
top funding priorities.
(Ranked by Extremely/Very Important)
126
15 61%
61%
59%
60%
52%
51%
51%
23%
23%
25%
23%
30%
31%
30%
9%
10%
10%
8%
10%
15%
16%
5%
6%
5%
^Maintaining safe routes to school
Maintaining gang prevention programs
Improving emergency response times
Improving response to property crime
^Maintaining parks and recreation areas
^Fixing potholes and streets
Ext. Impt. Very Impt. Smwt. Impt. Not Too Impt. Don't Know Ext./Very Impt.
84%
84%
84%
83%
82%
82%
82%
Q. The proposed ballot measure you considered earlier has not yet been finalized. Now I’m going to read you a list of services, infrastructure projects and provisions that could be included in this measure. Please tell me how important that service, infrastructure project or provision is to you personally:

Is it extremely important, very important, somewhat important, or not too important? ^Not Part of Split Sample More than four in five say safe routes to
school and gang prevention are important.
^Requiring cannabis businesses
follow laws protecting public health,
safety and community standards
(Ranked by Extremely/Very Important)
127
16 50%
48%
49%
46%
53%
49%
39%
31%
32%
30%
33%
25%
28%
37%
14%
13%
15%
16%
13%
17%
19%
6%
6%
6%
^Retaining and recruiting firefighters
Supporting youth programs
Cleaning-up illegal dumping
Addressing illegal dumping and blight
^Ensuring legal cannabis businesses
meet required safety regulations
Maintaining neighborhood
police patrols
Improving city services
Ext. Impt. Very Impt. Smwt. Impt. Not Too Impt. Don't Know Ext./Very Impt.
82%
80%
79%
79%
77%
77%
76%
Q. The proposed ballot measure you considered earlier has not yet been finalized. Now I’m going to read you a list of services, infrastructure projects and provisions that could be included in this measure. Please tell me how important that service, infrastructure project or provision is to you personally:

Is it extremely important, very important, somewhat important, or not too important? ^Not Part of Split Sample Voters also widely view retaining firefighters and
supporting youth programs as important.
(Ranked by Extremely/Very Important)
128
17 45%
44%
41%
47%
37%
41%
33%
29%
32%
33%
26%
33%
24%
31%
14%
17%
19%
15%
23%
17%
24%
8%
7%
6%
11%
6%
15%
11%
^Maintaining school resource officers
Supporting afterschool programs
Helping retain and attract businesses
Improving neighborhood police patrols
^Improving senior programs
^Increasing the number of police officers
Helping attract businesses
Ext. Impt. Very Impt. Smwt. Impt. Not Too Impt. Don't Know Ext./Very Impt.
75%
75%
74%
73%
70%
66%
64%
Q. The proposed ballot measure you considered earlier has not yet been finalized. Now I’m going to read you a list of services, infrastructure projects and provisions that could be included in this measure. Please tell me how important that service, infrastructure project or provision is to you personally:

Is it extremely important, very important, somewhat important, or not too important? ^Not Part of Split Sample Helping attract businesses ranks lowest as a
relative priority, although a majority support it.
(Ranked by Extremely/Very Important)
129
18 Impact of Information
130
19 Definitely yes
Probably yes
Undecided, lean yes
Undecided, lean no
Probably no
Definitely no
Undecided
42%
20%
4%
3%
6%
18%
7%
Total
Yes
66%
62%
Initial Vote Vote After
Education
51%
17%
7%
1%
4%
16%
5%
Total
Yes
74%
43%
17%
4%
3%
5%
20%
8%
Total
Yes
64%
68% 60%
Support for the measure with the mandate
language fluctuates with messaging, but remains
above 50% throughout the survey.

Q. Based on this description, would you vote yes or no on this measure? Split Sample Total
No
27%
Total
No
21%
Total
No
28%
Vote After
Negative Messages
(With Mandate; M.O.E=±5.7%)
131
20 Definitely yes
Probably yes
Undecided, lean yes
Undecided, lean no
Probably no
Definitely no
Undecided
43%
19%
5%
2%
8%
20%
3%
Total
Yes
67%
62%
Initial Vote Vote After
Education
43%
23%
5%
1%
5%
18%
5%
Total
Yes
71%
40%
20%
5%
2%
5%
22%
6%
Total
Yes
66%
66% 60%
Q. Based on this description, would you vote yes or no on this measure? Split Sample Total
No
30%
Total
No
24%
Total
No
28%
The version that does not mention the mandate
also remains well-above 50% after messaging.

Vote After
Negative Messages
(No Mandate; M.O.E=±5.7%)
132
21 Vote progression With and Without Mandate
Q. Based on this description, would you vote yes or no on this measure? Split Sample Q. Based on this description, would you vote yes or no on this measure? Split Sample 66%
74%
64% 67% 71%
66%
27%
21%
28% 30%
24% 28%
7% 5% 8%
3% 5% 6%
Initial
Vote
Vote After
Education
Vote After
Negative
Messages
Initial
Vote
Vote After
Education
Vote After
Negative
Messages
Total Yes
Total No
Undecided
Mandate No Mandate
(M.O.E=±5.7%)
133
22 Conclusions
134
23 Conclusions
• The proposed measure to tax cannabis businesses in Visalia appears viable for November 2024.
• The measure receives broad and consistent support among the electorate, regardless of whether or not a state mandate is mentioned in the ballot language. • Although many are uncertain about whether it is legal or not to sell cannabis in Visalia, majorities support allowing cannabis business activity. • Additionally, nearly three-quarters perceive a need for funding for city services. • In that context, nearly two-thirds support the proposed simple majority measure initially.
• Voters place the greatest priority on addressing homelessness, maintaining emergency response times, keeping public areas safe and clean, and preventing property crime.
• Support fluctuates with messaging, but remains well-above the 50% threshold for passage throughout the survey.
135
Visalia Voter Attitudes Toward
a Proposed Cannabis Measure
Key Findings of a Citywide Survey Conducted March 12-18, 2024 220-7065
136
137
138
139
140
141
142
143
144
145
146
147
148
149
150
151
152
153
154
155
156
157
158

Cannabis Business Tax Ordinance

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ORDINANCE NO. 2024-06

AN ORDINANCE OF THE CITY OF VISALIA, CALIFORNIA ADDING
CHAPTER 3.14 (CANNABIS BUSINESS TAX) TO TITLE 3 OF THE

VISALIA MUNICIPAL CODE ESTABLISHING A TAX ON CANNABIS

BUSINESS ACTIVITIES WITHIN THE CITY
WHEREAS, 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
WHEREAS, in 2016, California voters approved Proposi tion 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 agenci es, such as the City of Visalia to decide whether to allow commercial marijuana activities within the local agency jurisdiction along with allowing local agencies to pass, with requisite voter approval, local excise taxes on cannabis businesses; and

WHEREAS, in 2022, SB 1186, which became effective on January 1, 2024, 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 prohi bit the retail sale by delivery of medicinal cannabis, although zoning and business license regulations of such businesses are allowed by state law; and

WHEREAS, the City of Visalia, in response to SB 1186 modified its municipal code to allow non storefront or delivery only medicinal cannabis businesses within Visalia , although no such businesses presently operate within Visalia; and

WHEREAS, presently the City of Visalia has no local excise tax on cannabis businesses; and

WHEREAS, if in the future cannabis business activities are permitted in the City of Visalia by either a future City of Visalia City Council, the voters of Visalia through a future ballot measure, or state law permitting such sales, then the Visalia City Council desires that a tax be in place and imposed on any such future cannabis business activities; and

WHEREAS, the City Council finds that this ordinance would, if approved by voters, authorize a tax for general fund purposes on cannabis business activities that are allowe d within the City of Visalia.

NOW THEREFORE THE CITY COUNCIL OF THE CITY OF VISALIA DOES ORDAIN AS FOLLOWS:

SECTION 1. CODE AMENDMENT. Chapter 3.14 is added to Title 3 of the Visalia Municipal Code 159

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to read as follows:

CHAPTER 3.14

3.14.010 Title.

3.14.020 Authority and purpose.

3.14.030 Intent.

3.14.040 Definitions.

3.14.050 Tax imposed.

3.14.060 Registration, reporting, and remittance of tax.

3.14.070 Payments and communications – timely remittance.

3.14.080 Payment – when taxes deemed delinquent.

3.14.090 Notice not required by City.

3.14.100 Penalties and interest.

3.14.110 Refunds and credits.

3.14.120 Refund procedures.

3.14.130 Personal cultivation not taxed.

3.14.140 Administration of the tax.

3.14.150 Appeal procedures.

3.14.160 Enforcement – action to collect.

3.14.170 Apportionment.

3.14.180 Constitutionality and legality.

3.14.190 Audit and examination of premises and records.

3.14.200 Other licenses, permits, taxes or charges.

3.14.210 Payment of tax does not authorize unlawful business.

3.14.220 Deficiency determinations.

3.14.230 Failure to report – nonpayment, fraud.

3.14.240 Tax assessment – notice requirements.

3.14.250 Tax assessment – hearing, application, and determination.

3.14.260 Relief from taxes – disaster relief.

3.14.270 Conviction for violation – taxes not waived.

3.14.280 Violation deemed misdemeanor.

3.14.290 Severability.

3.14.300 Remedies cumulative.

3.14.310 Amendment or modification.

3.14.010 Title.

This ordinance shall be known as the Cannabis Business Tax Ordinance. This ordinance shall be applicable in the City of Visalia, California which shall be referred to herein as “City.”

3.14.020 Authority and Purpose.

The purpose of this Ordinance is to adopt a tax, for revenue purposes, pursuant to Sections 37101 and 37100.5 of the California Government Code, upon cannabis businesses that 160

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engage in business in the City. The Cannabis Business Tax is levied based upon busin ess gross receipts except for commercial cannabis cultivation which may be taxed either on business gross receipts or on the square footage of the permitted cultivation area. It is not a sales and use tax, a tax upon income, or a tax upon real property and shall not be calculated or assessed as such.

The Cannabis Business Tax shall not be separately identified or otherwise specifically assessed or charged to any member, customer, patient, or caretaker. The Cannabis Business Tax is a general tax enacted solely for general, governmental purposes of the City and not for specific purposes.

All of the proceeds from the tax imposed by this chapter shall be placed in the City's general fund and be available for any lawful City purpose.

3.14.030 Intent.

The intent of this Ordinance is to levy a tax on all cannabis businesses that operate in the City, regardless of whether such business would have been legal at the time this chapter was adopted. Nothing in this chapter shall be interpreted to authorize or permit any business activity that would not otherwise be legal or permissible under laws applicable to the activity at the time the activity is undertaken.

3.14.040 Definitions.

The following words and phrases shall have the meanings set forth below when used in this chapter:

A. An "arm's length transaction" is a sale entered into in good faith and for valuable consideration that reflects the fair market value in the open market between two informed and willing parties, neither under any compulsion to participate in the transaction.

B. “Business” shall include all activities engaged in or caused to be engaged in within the City, including any commercial or industrial enterprise, trade, profession, occupation, vocation, calling, or livelihood, whether or not carried on for gain or profit, but shall not include the services rendered by an employee to his or her employer.

C. “Calendar year” means January 1 through December 31, of the same year.

D. “Cannabis” means all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its se eds, or resin. “Cannabis” also means the separated resin, whether crude or purified, obtained from cannabis. “Cannabis” shall not include “industrial hemp,” unless otherwise specified.

E. “Cannabis product” means raw cannabis that has undergone a process whereby the raw agricultural product has been transformed into a concentrate, an edible product, or a topical product. “Cannabis product” also means cannabis products as defined by Section 11018.1 161

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of the California Health and Safety Code and is not limited to medicinal cannabis products.

F. “Canopy” means all areas occupied by any portion of a cannabis plant whether contiguous or noncontiguous on any one site. When plants occupy multiple horizontal planes (as when plants are placed on shelving above other plants) each plane shall be counted as a separate canopy area.

G. “Cannabis business” means any business activity involving cannabis, including but not limited to cultivating, transporting, distributing, manufacturing, compoundin g, converting, processing, preparing, storing, packaging, delivering, testing, dispensing, retailing and wholesaling of cannabis, cannabis products or of ancillary products and accessories, whether or not carried on for gain or profit.

H. “Cannabis business tax” means the tax due pursuant to this chapter for engaging in a cannabis business in the City.

I. “Commercial cannabis cultivation” means cultivation of cannabis undertaken in the course of conducting a cannabis business.

J. “Commercial cannabis permit” means a permit , license, certificate, or other approval issued by the City to a person to authorize that person to operate a cannabis business or engage in business as a cannabis business within the City.

K. “Cultivation” means any acti vity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis and includes, but is not limited to, the operation of a nursery.

L. “Employee” means each and every person engaged in the operation or conduct of any business, whether as owner, member of the owner's family, partner, associate, agent, manager or solicitor, and each and every other person employed or working in such business for a wage, salary, commission, barter or any other form of compensation.

M. “Engaged in business as a cannabis business” means the commencing, conducting, operating, managing or carrying on of a cannabis business, whether done as owner, or by means of an officer, agent, manager, employee, or otherwise, whether operating from a fixed location in the City or coming into the City from an outside location to engage in such activities. A person shall be deemed engaged in business within the City if:

1. Such person or person ’s employee maintains a fixed place of business within the City for the benefit or partial benefit of such person;

2. Such person or person’s employee owns or leases real property within the City for business purposes;

3. Such person or person’s employee regularly maintains a stock of tangible 162

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personal property in the City for sale in the ordinary course of business;

4. Such person or person’s employee regularly conducts solicitation of business within the City;

5. Such person or person’s employee regularly conducts sales by delivery to addresses within the City; or

6. Such person or person’s employee performs work or renders services in the City.

The foregoing specified activities shall not be a limitation on the meaning of “engaged in business.”

N. “Evidence of doing business” means evidence such as, without limitation, use of signs, circulars, cards or any other advertising media, inclu ding the use of internet or telephone solicitation, or represent ation to a government agency or to the public that such person is engaged in a cannabis business in the City.

O. “Gross Receipts,” except as otherwise specifically provided, means , whether designated as a sales price, royalty, rent, membership fee, ATM service fee, delivery fee, slotting fee, any other fee, vaping room service charge, commission, dividend, or other designation, the total amount (including all receipts, cash, credits , services and property of any kind or nature) received or payable for sales of goods, wares or merchandise, or for the performance of any act or service of any nature for which a charge is made or credit allowed (whether such service, act or employment is done as part of or in connection with the sale of goods, wares, merchandise or not), without any deduction therefrom on account of the cost of the property sold, the cost of materials used, labor or service costs, interest paid or payable, losses or any other expens e whatsoever. In the event the business is involved in a “non-arm’s length transaction” the gross receipts will be subject to the fair market value using a methodology approved by the Tax Administrator. However, the following shall be excluded from Gross Receipts:

1. Cash discounts where allowed and taken on sales;

2. Any tax required by law to be included in or added to the purchase price and collected from the consumer or purchaser;

3. Such part of the sale price of any property returned by purchasers to the seller as refunded by the seller by way of cash or credit allowances or return of refundable deposits previously included in gross receipts;

4. Receipts derived from the occasional sale of used, obsolete or surplus trade fixtures, machinery or other equipment used by the taxpayer in the regular course of the taxpayer's business;

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5. Cash value of sales, trades or transactions between departments or units of the same business located in the City of Visalia and if authorized by the Tax Administrator in writing in accordance with Section 3.14.140 (B);

6. Whenever there are included within the gross receipts amounts which reflect sales for which credit is extended and such amount proved uncollectible in a subsequent year, those amounts may be excluded from the gross receipts in the year they prove to be unc ollectible; provided, however, if the whole or portion of such amounts excluded as uncollectible are subsequently collected they shall be included in the amount of gross receipts for the period when they are recovered;

7. Receipts of refundable deposits, except that such deposits when forfeited and taken into income of the business shall not be excluded;

8. Retail sales of non-cannabis products, if and only if the Tax Administrator has issued an administrative ruling per Section 3.14.140 that such non-cannabis products shall not be subject to the cannabis business tax under this chapter. Such non -cannabis products may include branded merchandise such as t-shirts, sweaters, hats, stickers, key chains, bags, books, posters or other products, as well as can nabis accessories such as pipes, pipe screens, rolling papers, vape pen batteries (without cannabis) or other personal tangible property. Such non -cannabis products may also include products derived from industrial hemp, as defined, when intended for human consumption or ingestion through any means or for external application to the skin or body. Unless specifically excluded by an administrative ruling issued by the Tax Administrator, all such non-cannabis products shall be subject to the City’s cannabis bu siness tax. Any sales of non-cannabis products not subject to the cannabis business tax pursuant to an administrative ruling shall be subject to the appropriate business tax provisions of Chapter 5.04 as determined by the Tax Administrator.

9. Payments m ade by the tax -reporting cannabis business (Seller) to a cannabis business (Buyer) for the difference in the original acquisition price and subsequent renegotiated or finalized selling price of products or services sold to a specific end customer. This typ e of transaction is referred to as a “ billback”. The tax -reporting cannabis business must provide supporting documentation to substantiate the transaction in order to be eligible for an exemption.

P. “Industrial hemp” means a crop that is limited to types of the plant Cannabis sativa L. having no more than three -tenths of 1 percent tetrahydrocannabinol (THC) contained in the dried flowering tops, whether growing or not; the seeds of the plant; 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 produced therefrom , as defined by Section 11018.5 of the California Health and Safety Code and regulated by the Department of Food and Agriculture in accordance with the provisions of Division 24 (commencing with Section 81000) of the Food and Agricultural Code, inclusive.

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Q. “Industrial hemp products” means any raw industrial hemp that has undergone a process whereby the raw agricultural product has been transformed into a concentrate, an edible product, or a topical product. “Hemp product” also means hemp products as defined by Section 11018.5 of the California Health and Safety Code.

R. “Lighting” means a source of light that is primarily used for promoting the biological process of plant growth. Lighting does not include sources of light that primarily exist for the safety or convenience of staff or visitors to the facility, such as emergency lighting, walkway lighting, or light admitted via small skylights, windows or ventilation openings.

S. “Medicinal cannabis” or “medicinal cannabis product” means cannabis or a cannabis product sold, or intended to be sold, for use pursuant to the Compassionate Use Act of 1996 (Proposition 215), found at Section 11362.5 of the Health and Safety Code, for a medicinal cannabis patient in California who possesses a physician’s recommendation and/or a cannabis card issued pursuant to Health and Safety Code Section 11362.71.

T. “Nursery” means a facility or part of a facility that is used only for producing clones, immature plants, seeds, and other agricultural products used specifically for the planting, propagation, and cultivation of cannabis.

U. A "non-arm's length transaction" is a transaction that does not meet the definition of an "arm's length transaction." In other words, the transaction is not a sale that reflects fair market value in the open market. One example of a non-arm's length transaction would be when a cultivator sells cannabis goods to a cannabis distributor at a sales price that is lower than what the same cultivator would charge to other cannabis distributors, or which does not reflect the fair market value in the open market.

V. “Person” means an individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit, whether organized as a nonprofit or for-profit entity, and includes the plural as well as the singular number.

W. “Processing” means a cultivation site that conducts only trimming, drying, curing, grading, packaging, or labeling of cannabis and non-manufactured cannabis products.

X. “Retailer” means a person or business as defined in Section 3.14.040 (V) who sells cannabis or cannabis products at their place of business or by delivery to an end user or customer for use or consumption rather than to another person or business for resale.

Y. “Sale”, “sell” and “to sell” means and includes any sale, exchange, or barter either as a retailer or wholesaler by a person or business as defined by Section 3.14.040 (V). It shall also mean any transaction whereby, for any consideration, title to cannabis or cannabis products are 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, but does not include the return of cannabis or cannabis products to the licensee from whom the cannabis or cannabis product was purchased.

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Z. “State” means the State of California.

AA. “State license,” “license,” or “registration” means a state license issued pursuant to California Business & Professions Code Section 26050, and all other applicable state law s, required for operating a cannabis business.

AB. “Tax Administrator” means the Finance Director of the City of Visalia or his or her designee.

AC. “Testing Laboratory” means a cannabis business that (i) offers or performs tests of cannabis or cannabis products, (ii) offers no service other than such tests, (iii) sells no products, excepting only testing supplies and materials, (iv) is accredited by an accrediting body that is independent from all other persons involved in the cannabis industry in the state and ( v) is registered with the Department of Cannabis Control or other state agency.

3.14.050 Tax Imposed.

A. Beginning January 1, 2025, there is imposed upon each person who is engaged in business as a cannabis business a cannabis business tax. Such tax is payable regardless of whether the person has been issued a commercial cannabis business license, permit, or other certificate to operate law fully in the City or is operating unlawfully. The City’s acceptance of a cannabis business tax payment from a cannabis business operating illegally shall not constitute the City’s approval or consent to such illegal operations.

B. The City Council may, by resolution or ordinance, increase or decrease the rate of the cannabis business tax, including the initial rate of cannabis business tax.

Notwithstanding the foregoing, in no event shall the City Council repeal this tax or set any adjusted rate that exceeds the maximum rates calculated pursuant to this chapter.

C. The maximum rate of the cannabis business tax shall be calculated as follows:

1. For every person engaged in retail sales of cannabis or cannabis products, including as a retailer (dispensary) or non -storefront retailer (retail delivery business), or microbusiness, the person shall be subject to the maximum tax rate not to exceed ten percent (10%) of gross receipts.

2. For every person engaged in any wholesale cannabis business activity including but not limited to cannabis cultivation, manufacturing, distribution, or any other wholesale activity not specifically listed herein, the person shall be subject to the maximum tax rate not to exceed ten percent (10%) of gross receipts.

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a. The City Council may, at its discretion, establish separate categories of wholesale cannabis businesses (e.g.; cultivation, manufacturing or distribution) subject to separate tax rates so long as the rate does not exceed the maximum rate for wholesale cannabis businesses established in Section 3.14.050 (C)(2), above.

3. As an alternative to the tax rate established in Section 3.14.050 (C)(2), above, the City Council may, by resolution or ordinance, establish a separate method and rate of taxation for cannabis cultivation based on the maximum square footage of canopy as allowed on the permit issued to the business by the City, as described below. The City may n ot change the method of taxation more often than annually, nor may it change the method of taxation more than twice (two times) within any 5-year period.

a. Through January 1, 2026, the annual maximum rate shall be:

i. Ten dollars ($10.00) per square foot of canopy space in a facility that uses exclusively artificial lighting.

ii. Seven dollars ($7.00) per square foot of canopy space in a facility that uses a combination of natural and supplemental lighting as defined in Section 3.14.040 (R) of this chapter.

iii. Four dollars ($4.00) per square foot of canopy space in a facility that uses no artificial lighting.

iv. Two dollars ($2.00) per square foot of canopy space for any nursery.

b. On January 1, 2026 and on each January 1, thereafter, the maximum annual tax rates specified in Subsection 3.14.050 (C) (3) (a), shall increase by the percentage increase in the Consumer Price Index (“CPI”) for consumers in the Western Region as published by the United States Government Bureau of Labor Statistics. However, no CPI adjustment resulting in a decrease of any tax imposed by this subsection shall be made.

4. For every person engaged in the operation of a testing laboratory for cannabis or cannabis products, the person shall be subject to the maximum tax rate not to exceed ten percent (10%) of gross receipts.

D. Persons subject to the cannabis business tax shall register with the City and if applicable pay the registration fee pursuant to Section 3.14.060 and in accordance with Chapter 5.04 of the Visalia Municipal Code.

E. Businesses subject to the cannabis business tax under this section shall not be 167

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subject to the City's general business license tax as defined in Chapter 5.04 unless the business also sells non -cannabis products that are not subject to this t ax pursuant to Section 3.14.040(O)(8).

3.14.060 Registration, reporting and remittance of tax.

A. Registration of Cannabis Business. All cannabis businesses shall be required to annually register as follows:

1. All persons engaging in business as a cannabis business, whether an existing, newly established or acquired business , shall register with the Tax Administrator within thirty (30) days of commencing operation and shall annually renew such registration within 30 days of the busines s registration anniversary date of each year thereafter. In registering, such persons shall furnish to the Tax Administrator a sworn statement, upon a form provided by the Tax Administrator, setting forth the following information:
i. The name of the business;
ii. The names and addresses of each owner;
iii. The exact nature or kind of business;
iv. The place where such business is to be carried on; and v. Any additional information which the Tax Administrator may require.

2. All persons engaging in retail sales of cannabis or cannabis products by delivery from locations outside of the City to addresses within the City shall apply for and retain a business license (business tax certificate) prior to conducting any such sales. To obtain a business license all such businesses shall do all of the following:
i. Complete a Business Tax Certificate Application and Cannabis Delivery Business Registration Form;
ii. Provide a copy of a valid DCC license and a valid license from a local agency authorizing the business to conduct ca nnabis operations as a retailer; and
iii. Submit completed forms and license/permit processing fees as established by the Tax Administrator.

B. An annual registration fee in accordance with the current and approved City fee schedule shall be presented with the sworn statement submitted under this 168

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chapter. This fee shall not be considered a tax and may be adjusted by resolution of the City Council.

C. The cannabis business tax imposed by this chapter shall be paid, in arrears, on a monthly basis. Each person owing a cannabis business tax shall on or before the last day of the month following the close of each month file with the Tax Administrator a statement (“tax statement” ) of the tax owed for that calendar month and the basis for calculating that tax. The Tax Administrator may require that the tax statement be submitted on a form prescribed by the Tax Administrator. The tax for each calendar month shall be due and payable on the same date that the tax statement is due.

D. Upon cessation of a cannabis business, tax statements and payments shall be immediately due for all calendar months up through the calendar month during which cessation occurred.

E. In the event that there is a change in ownership of any cannabis business:
a. The new owner is required to submit an updated registration form to the Tax Administrator;
b. The new owner is subject to an audit by the Tax Administrator; and c. Unless otherwise provided by law, it is the joint a nd several liability of both the seller and buyer to remit any taxes, interest, penalties, and fees due up until the date of sale; otherwise, enforcement action may be taken pursuant to Section 3.14.160 of this chapter against both the seller and/or buyer in an amount to be determined by the Tax Administrator.

F. The Tax Administrator may, at his or her discretion, establish alternative reporting and payment periods for any taxpayer as the Tax Administrator deems necessary to ensure effective collection of the cannabis business tax. The Tax Administrator may also require that a deposit, to be applied against the taxes for a calendar month, be made by a taxpayer at the beginning of that calendar month. In no event shall the deposit required by the Tax Administrator exceed the tax amount he or she projects will be owed by the taxpayer for the calendar month. The Tax Administrator may require that a taxpayer make payments via a cashier’s check, money order, wire transfer, or similar instrument.

3.14.070 Payments and communications – timely remittance.

Whenever any payment, statement, report, request or other communication is due, it must be received by the Tax Administrator on or before the final due date. A postmark will not be accepted as timely remittance. If the due date would fall on a Saturday, Sunday or a holiday observed by the City , the due da te shall be the next regular business day on which the City is open to the public.
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3.14.080 Payment - when taxes deemed delinquent.

Unless otherwise specifically provided under other provisions of this chapter, the taxes required to be paid pursuant to this chapter shall be deemed delinquent if not received by the Tax Administrator on or before the due date as specified in Sections 3.14.060 and 3.14.070.

3.14.090 Notice not required by the City.

The City may as a courtesy send a tax notice to the cannabis business which owes the City a cannabis business tax. However, the Tax Administrator is not required to send a delinquency or other notice or bill to any person subject to the provisions of this chapter. Failure to send such notice or bill shall not affect the validity of any tax or penalty due under the provisions of this chapter.

3.14.100 Penalties and interest.

A. Any person who fails or refuses to pay any cannabis business tax required to be paid pursuant to this chapter on or before the due date shall pay penalties and interest as follows:

1. A penalty equal to ten percent (10%) of the amount of the tax, in addition to the amount of the tax, plus interest on the unpaid tax calculated from the due date of the tax at the rate of one percent (1%) per month.

2. If the tax remains unpaid for a period exceeding one calendar month beyond the due date, a n additional penalty equal to twenty -five percent (25%) of the amount of the tax, plus interest at the rate of one percent (1%) per month on the unpaid tax and on the unpaid penalties.

3. Interest shall be applied at the rate of one percent (1%) per month on the first day of the month for the full month and will continue to accrue monthly on the tax and penalty until the balance is paid in full.

B. Whenever a check or electronic payment is submitted in payment of a cannabis business tax and the payment is subsequently returned unpaid by the bank for any reason, the taxpayer will be liable for the tax amount due plus any fees, penalties and interest as provided for in this chapter, and any other amount allowed under state law.

C. The Tax Administrator may waive the penalties imposed upon any person under this Section 3.14.100 if:

1. The person requests a waiver of penalties by submitting a written request for waiver to the Tax Administrator no later than June 30 of the second fisca l year following the fiscal year in which the tax became delinquent; and

2. The person provides evidence satisfactory to the Tax Administrator that the failure to pay timely was due to circumstances beyond the control of the person and 170

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occurred notwithstan ding the exercise of ordinary care and in the absence of willful neglect; and the person paid the delinquent taxes, penalties, accrued interest, and fees owed prior to applying to the Tax Administrator for a waiver.

D. The waiver provisions specified in S ection 3.14.100 (C) shall not apply to interest accrued on the delinquent taxes and a waiver shall be granted only once during any twenty-four month period. The Tax Administrator’s decision on a request for a waiver of penalties is final and conclusive and not subject to appeal under Section 3.14.150.

3.14.110 Refunds and credits.

A. No refund shall be made of any tax collected pursuant to this chapter, except as provided in Section 3.14.120.

B. No refund of any tax collected pursuant to this chapter shall be made because of the discontinuation, dissolution, or other termination of a business.

3.14.120 Refund procedures.

A. Whenever the amount of any cannabis business tax, penalty or interest has been overpaid, paid more than once, or has been erroneously collected or received by the City under this chapter, it may be refunded to the claimant who paid the tax provided that a written claim for refund signed under the penalty of perjury is filed with the Tax Administrator within one (1) year of the date the tax was originally due or paid, whichever came first. A person may only file a claim for refund if the person paid the tax. No person shall be entitled to a refund un less the person can support the claim by written records sufficient to show entitlement thereto. The Tax Administrator's decision on a claim for refund is final and conclusive and not subject to appeal under Section 3.14.150.

B. The Tax Administrator, his or her designee which may include a third party or any other City officer charged with the administration of this chapter shall have the right to examine and audit all the books and business records of the claimant in order to determine the eligibility of the claimant to the claimed refund. No claim for refund shall be allowed if the claimant refuses to allow such examination of claimant's books and business records after request by the Tax Administrator to do so. The Tax Administrator may collect a fee adopted by resolution by the City Council to pay for the cost of examination and audit should the books and records be provided in a form insufficient to allow the Tax Administrator t o make a determination on the claim for refund.

C. In the event that the cannabis business tax was erroneously paid in an amount in excess of the tax due , and the error is attributable to the City, the City shall refund the amount of tax erroneously paid ; provided that (i) a claim for refund has been timely filed with the Tax Administrator; and (ii) the refund cannot exceed, under any circumstance, the amount of tax overpaid during the twelve months preceding the last month for which the claim states the tax was overpaid.
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3.14.130 Personal Cultivation Not Taxed.

The provisions of this chapter shall not apply to personal cannabis cultivation or personal use of cannabis, to the extent those activities are authorized in the “Medicinal and Adult Use Cannabis Regulation and Safety Act,” as may be amended. This chapter shall not apply to personal use of cannabis that is specifically exempted from state licensing requirements, that meets the definition of personal use or equivalent terminology under stat e law, and provided that the individual receives no compensation whatsoever related to that personal cultivation or use.

3.14.140 Administration of the tax.

A. It shall be the duty of the Tax Administrator to collect the taxes, penalties, fees, and perform the duties required by this chapter.

B. For purposes of administration and enforcement of this chapter generally, the Tax Administrator may from time to time promulgate such administrative interpretations, rules, and procedures consistent with the purpose, intent, and express terms of this chapter as he or she deems necessary to implement or clarify such provisions or aid in enforcement.

C. The Tax Administrator may take such administrative actions as nee ded to administer the cannabis business tax, including but not limited to:

1. Provide to all cannabis business taxpayers forms for the reporting of the tax;

2. Provide information to any taxpayer concerning the provisions of this chapter;

3. Receive and record all taxes remitted to the City as provided in this chapter;

4. Maintain records of taxpayer reports and taxes collected pursuant to this chapter;

5. Assess penalties and interest to taxpayers pursuant to this chapter;

6. Determine amounts owed under and enforce collection pursuant to this chapter.

3.14.150 Appeal procedures.

A taxpayer aggrieved by a decision of the Tax Administrator with respect to the amount of tax, interest, penalties, and fees, if any, due under this chapter may appeal only if a hearing was requested and attended pursuant to Section 3.14.250. An appeal may be made by filing a notice of appeal with the City Clerk within thirty (30) calendar days of the serving or mailing of the Tax Administrator’s decision of the amount due. Upon receipt of a timely notice of appeal, the City Clerk shall fix a time and place for hearing such appeal with the City Manager or his or her designee serving as the hearing officer. The City Clerk shall give at least ten (10) calendar days’ notice of the appeal hearing in writing to such taxpayer at the last known place of address.

The hearing officer shall render a written decision that shall be served on the taxpayer at the last known place of address. The decision of the hearing off icer shall be final and conclusive. Any 172

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amount found to be due by the hearing officer shall be immediately due and payable upon the service of the decision. If no notice of appeal is filed within the time prescribed in this Section, the Tax Administrator’s decision with respect to the amount of tax, interest, penalties, and fees due is final and conclusive.

3.14.160 Enforcement - action to collect.

Any taxes, interest, penalties, and/or fees required to be paid under the provisions of this chapter shall be deemed a debt owed to the City. Any person owing money to the City under the provisions of this chapter shall be liable in an action brought in the name of the City for the recovery of such debt. The provisions of this chapter shall not be deemed a lim itation upon the right of the City to bring any other action including criminal, civil and equitable actions, based upon the failure to pay the tax, interest, penalties, and/or fees imposed by this chapter or the failure to comply with any of the provisions of this chapter.

3.14.170 Apportionment.

If a person subject to the tax is operating both within and outside the City, it is the intent of the City to apply the cannabis business tax so that the measure of the tax fairly reflects the proportion of the taxed activity actually carried on in the City. To the extent federal or state law requires that any tax due from any taxpayer be apportioned, the taxpayer may indicate said apportionment on his or her tax return . The Tax Administrator may promulgate administrative procedures for apportionment as he or she finds useful or necessary.

3.14.180 Constitutionality and legality.

This tax is intended to be applied in a manner consistent with the United States and California Constitutions and state law. None of the tax provided for by this chapter shall be applied in a manner that causes an undue burden upon interstate commerce , a v iolation of the equal protection or due process clauses of the Constitutions of the United States or the State of California or a violation of any other provision of the California Constitution or state law. If a person believes that the tax, as applied to him or her, is impermissible under applicable law, he or she may request that the Tax Administrator release him or her from the obligation to pay the impermissible portion of the tax.

3.14.190 Audit and examination of premises and records.

A. For the purpose of ascertaining the amount of cannabis business tax owed or verifying any representations made by any taxpayer to the City in support of his or her tax calculation, the Tax Administrator or his/her designees , which may include a third party , shall have the power to inspect any location where commercial cannabis activity occurs and to audit and examine all books and records (including, but not limited to bookkeeping records, access to METRC data, and/or point -of-sale data, state and /or federal income tax returns, excise tax returns, space utilized for cannabis related activities, and other records relating to the gross receipts of the business) of persons engaged in cannabis businesses. In conducting such 173

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investigation, the Tax Administrator, or his/her designees, which may include a third party, shall have the power to inspect any space utilized for cannabis business related activities , equipment or software, such as computers, software systems, platforms, and databases (including METRC), and/or point of sale systems, to include any keys or access codes for access to and use of the equipment and/or software, that may contain such records.

B. It shall be the duty of every person liable for the collection and payment to the City of any ta x imposed by this chapter to keep and preserve, for a period of at least three (3) years, all records as may be necessary to determine the amount of such tax as he or she may have been liable for the collection of and payment to the City, which records the Tax Administrator or his/her designee, which may include a third party, shall have the right to inspect at all reasonable times.

3.14.200 Other licenses, permits, taxes, fees or charges.

A. Nothing contained in this chapter shall be deemed to repeal, amend, be in lieu of, replace or in any way affect any requirements for any commercial cannabis permit, City license, permit, or other certificate required by, under or by virtue of any provision of any other Chapter of this code or any other ordinance or resolution of the City, nor be deemed to repeal, amend, be in lieu of, replace or in any way affect any tax, fee or other charge imposed, assessed or required under any other Chapter of this code or any other ordinance or resolu tion of the City.

Any references made or contained in any other Chapter of this code to any licenses, permits, certificates, taxes, fees, or charges, or to any schedule of license, permit, certificate, or fees, shall be deemed to refer to the licenses, permits or certificates, and their respective taxes, fees or charges, or schedule of license fees, provided for in other Chapters of this code.

B. The Tax Administrator may revoke or refuse to renew the license required by this code for any business that is delinquent in the payment of any tax due pursuant to this chapter or that fails to make a deposit required by the Tax Administrator pursuant to Section 3.14.060.

C. A commercial cannabis permit issued under the Visalia Municipal Code may be revoked, suspended or not renewed in the event that the business holding that permit has failed to (i) make a deposit required by the Tax Administrator pursuant to Section 3.14.060 or (ii) timely pay all taxes, interest and penalties owed by that business under this chapter.

3.14.210 Payment of tax does not authorize unlawful business.

A. The payment of a cannabis business tax required by this chapter, and its acceptance by the City, shall not entitle any person to carry on any cannabis business unless the person has complied with all of the requirements of this code and all other applicable state laws.

B. No tax paid under the provisions of this chapter shall be construed as authorizing the conduct or continuance of any illegal or unlawful business, or any business in violation of any local or state law.
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3.14.220 Deficiency determinations.

If the Tax Administrator is not satisfied that any statement filed as required under the provisions of this chapter is correct, or that the amount of tax is correctly computed, he or she may compute and determine the amount to be paid and make a deficiency determination upon the basis of the facts contained in the statement or upon the basis of any information in his or her possession or that may come into his or her possession within three (3) years of the date the tax was originally due and payable. One or more deficiency determinations of the amount of tax due for a period or periods may be made. When a person discontinues engaging in a cannabis business, a deficiency determination may be made at any time within three (3) years thereafter as to any liability arising from engagin g in such cannabis business whether or not a deficiency determination is issued prior to the date the tax would otherwise be due. Whenever a deficiency determination is made, a notice shall be given to the person concerned in the same manner as notices of assessment are given under Section 3.14.240 and 3.14.250.

3.14.230 Failure to report—nonpayment, fraud.

A. Under any of the following circumstances, the Tax Administrator may make and give notice of an assessment of the amount of tax owed by a person under this chapter at any time:

1. If the person has not filed a complete statement required under the provisions of this chapter;

2. If the person has not paid the tax due under the provisions of this chapter;

3. If the person has not, after demand by the Tax Administrator , filed a corrected statement, or furnished to the Tax Administrator adequate substantiation of the information contained in a statement already filed, or paid any additional amount of tax due under the provisions of this chapter; or

4. If the Tax Administrator determines that the nonpayment of any cannabis business tax due under this chapter is due to fraud, a penalty of twenty-five percent (25%) of the amoun t of the tax shall be added thereto in addition to penalties and interest otherwise payable under this chapter and any other penalties allowed by law.

B. The notice of assessment shall separately set forth the amount of any tax known by the Tax Administrator to be due or estimated by the Tax Administrator, after consideration of all information within the Tax Administrator's knowledge concerning the business and activities of the person assessed, to be due under each applicable provision of this chapter and shall include the amount of any penalties or interest accrued on each amount to the date of the notice of assessment. The notice shall state that the person has thirty (30) calendar days from the date of the notice to make a written request for an informal hearing before the Tax Administrator. The notice shall also state that if the person fails to timely request an informal hearing within the 175

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time allowed, the amount determined by the Tax Administrator is final and conclusive and is immediately due and payable.

3.14.240 Tax assessment - notice requirements.

The notice of assessment shall be served upon the person either by personal delivery, by overnight delivery by a nationally-recognized courier service, or by a deposit of the notice in the United States mail, postage prepaid thereon, addressed to the person at the address of the location of the business or to such other address as he or she shall register with the Tax Administrator for the purpose of rece iving notices provided under this chapter; or, should the person have no address registered with the Tax Administrator for such purpose, then to such person's last known address. For the purpose of Section 3.14.240, a service by overnight delivery shall be deemed to have occurred one (1) calendar day following deposit with a courier and service by mail shall be deemed to have occurred three (3) days following deposit in the United States mail.

3.14.250 Tax assessment - hearing, application and determination.

Within thirty (30) calendar days after the date of service of the notice of assessment the person may apply in writing to the Tax Administrator for an informal hearing on the assessment.

If application for a n informal hearing is not made within the time herein prescribed, the tax assessed by the Tax Administrator shall become final and conclusive. Within thirty (30) calendar days of the receipt of any such application for an informal hearing, the Tax Administrator shall cause the matter to be set for an informal hearing before him or her, or his/her designee, no later than thirty (30) calendar days after the receipt of the application, unless a later date is agreed to by the Tax Administrator and the person requesting the informal hearing. Notice of such informal hearing shall be given by the Tax Administrator to the person requesting such informal hearing no later than five (5) calendar days prior to such informal hearing. A hearing under this section shall be informal and need not follow any formal rules of evidence. At such hearing said applicant may appear and offer evidence why the assessment as made by the Tax Administrator should not be confirmed and fixed as the tax due. After such hearing the Tax Administrator shall determine and reassess (if necessary) the proper amount of tax, interest, penalties, and fees to be charged and shall give written notice of the decision to the person in the manner prescribed in Section

3.14.240 for giving notice of assessment. No appeal of a notice of assessment may be made under Section 3.14.150 unless an informal hearing is timely requested and the person attends the hearing. If the person fails to appear at the informal hearing, the amount due determined by the Tax Administrator in the notice of assessment is final and conclusive.

3.14.260 Relief from taxes – disaster relief.

A. If a person is unable to comply with any tax requirement imposed under this chapter due to a disaster impacting its ca nnabis business, the person may notify the Tax Administrator of its inability to comply and request relief from the tax requirement. For purposes of this chapter, “disaster” means fire, flood, storm, tidal wave, earthquake, or similar public 176

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calamity resulting in physical damage to real property , whether or not resulting from natural causes.

B. The person shall provide any information required by the Tax Administrator including, without limitation, why relief is requested, the time period for which the relief is requested, and the reason relief is needed for the specific amount of time. The person agrees to grant the Tax Administrator or his/her designee access to the location where the cannabis business has been impacted due to a disaster.

C. The Tax Administra tor, in his/her sole discretion, may provide relief from the cannabis business tax requirement for businesses whose operations have been impacted by a disaster if such tax relief does not exceed ten thousand ($10,000) dollars. Such temporary relief may be granted for a reasonable amount of time, in the Tax Administrator’s sole discretion, and the amount and duration of relief should be based upon how long it would reasonably take for the cannabis business to recover from the disaster. The Tax Administrator may require that the cannabis business follow certain conditions to receive temporary relief from the cannabis business tax requirement. The Tax Administrator's decision on a request for relief and the conditions that may be imposed for relief under this section are final and conclusive and not subject to appeal under Section 3.14.150.

3.14.270 Conviction for violation - taxes not waived.

The conviction and punishment of any person for failure to pay the required tax shall not excuse or exempt such person from any civil action for the tax debt unpaid at the time of such conviction. No civil action shall prevent a criminal prosecution for any violation of the provisions of this chapter or of any state law requiring the payment of all taxes.

3.14.280 Violation deemed misdemeanor.

Any person violating any of the provisions of this chapter shall be guilty of a misdemeanor pursuant to the penalty provision for municipal code violations stated in Chapter 1.12 of the Visalia Municipal Code.

3.14.290 Severability.

If any provision of this chapter, or its application to any person or circumstance, is determined by a court of competent jurisdiction to be unlawful, unenforceable, or otherwise void, that determination shall have no effect on any other provision of this chapter or the application of this chapter to any other person or circumstance and, to that end, the provisions hereof are severable.

3.14.300 Remedies cumulative.

All remedies and penalties prescribed by this chapter or which are available under any other provision of this code and any other provision of law or equity are cumulative. The use of 177

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one or more remedies by the City shall not bar the use of any other remedy for the purpose of enforcing the provisions of this chapter.

3.14.310 Amendment or modification.

Except as set forth in Section 3.14.310, this chapter may be amended or modified but not repealed by the City Council without a vote of the people. However, as required by Article XIII C of the California Constitution, voter approval is required for any amendment that would expand, extend, or increase the rate of any tax levied pursuant to this chapter beyond the maximums set forth in this chapter. The people of the City of Visalia affirm that the following actions shall not constitute an increase of the rate of a tax:

A. The restoration or adjustment of the rate of the tax to a rate that is no higher than that allowed by this chapter, in those circumstances where, among others, the City Council has previously acted to reduce the rate of the tax or is incrementally implement ing an increase authorized by this chapter;
B. An action that interprets or clarifies (i) the methodology of applying or calculating the tax or (ii) any definition applicable to the tax, so long as the interpretation or clarification (even if contrary to some prior interpretation or clarification) is not inconsistent with the provisions of this chapter; or
C. The collection of the tax imposed by this chapter even if the City had, for some period of time, failed to collect the tax.

SECTION 2. SEVERABILITY. If any section, subsection, sentence, clause or phrase of this ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portions of this ordinance. The people of the City of Visalia hereby declare that they would have passed this ordinance and each section, subsection , sentence, clause and phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, or phrases be declared invalid.

SECTION 3. ENVIRONMENTAL COMPLIANCE. The City Council hereby finds and determines that this resolution is exempt from the California Environmental Quality Act, Public Resources Code Sections 21000 et seq. (“CEQA”) and 14 Cal. Code Re. Sections 15000 et seq. (“CEQA Guidelines”). The calling a nd noticing of an election for the submission of a ballot measure to voters is not a project within the meaning of CEQA Guidelines 15378. The tax submitted to the voters is a general tax that can be used for any governmental purpose; it is not a commitment to any particular action or actions.
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As such, under CEQA Guidelines Section 15378 (b)(4), the tax is not a project within the meaning of CEQA because it creates a government funding mechanism that does not involve any commitment to any specific project that may result in a potentially significant physical impact on the environment. If revenue generated by the tax were used for a purpose that would have such an effect, the City of Visalia would undertake the required CEQA review for that particular project. Therefore, pursuant to CEQA Guideline Section 15060 CEQA analysis is not required.

SECTION 4. EFFECTIVE DATE. Pursuant to the California Constitution, Article XIIIC(2)(b) and California Elections Code 9217, if a majority of the voters voting in the election on Measure “Insert_” vote in favor of the adoption of such measure, this ordinance shall be deemed valid and binding and shall be considered adopted upon the date that the vote is declared by the City Council and shall go into effect ten (10) days after that date.

This Ordinance was approved and adopted by the People of the City of Visalia at the City’s November 5, 2024 statewide election.

This Ordinance was approved by Declaration of the vote by the City Council of the City of Visalia on ______________.

____________________________________
Brian Poochigian, Mayor
ATTEST:
____________________________
Leslie Caviglia, City Clerk
179
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 th ese municipal code additions and modifications:

A. In 1996 California voters app roved 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 whethe r 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 s ix plants) for personal use in compliance with state, not federal, law; and

D. In 2 022, SB 1186, which becomes eff ective on Jan uary 1, 2024, the Medicinal Cannabis Patients’ Right of Access Act was signed into law , this sta tute 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 con sistent other types of delivery businesses and allows interested parties a large area within the C ity that i s available for use, so the number of such sites is not restricted; and

G. Not allowing th is type of cannabis related business activity in commercial service zones avoids potential secondary impacts , such as encouraging youth smoking, drug use, 180
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 seco ndary 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 medici nal cannabis businesses to be non - storefront/delivery only, not cultivate marijuana onsite, provide a security pl an, 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 p arking and signag e requirements are consistent with similar uses within the City; and

J. The Planning Commission of th e 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 cons idered 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 Ci ty Council of the City of Visalia, after duly published not ice, held a public hearing before s aid 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 Z oning Ordinance, and is not detr imental to the public health, safety , or welfa re, or materially injurious to properties or improvements in the vicinity.

N. That the proposed Zon ing Text Amendment is not incon sistent 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 medi cal marijuana r etail 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 regulat ions 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’ 181
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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 182
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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 requi red 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 withi n 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 cu rrent M-license and Type 9 license from the CA Department of Cannabis Control required.

C. The name and address of th e 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 desi ring 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 an d history. A fee to reco ver costs of the background check must accompany the su bmission of each application. An annu al nonrefundable renewal fee may also be charged to defray associated costs of inve stigation, 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.
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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 employmen t history for the five ( 5) years immediately preceding the date of application.
x. The business license or permit histor y 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 o r 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 a pplicant is a partnership, the application must set forth the name and resid ence address of each of the partners, including the limit ed partners. If the applicant is a limited partnership, it must furnish a copy of its certificate of limited partnership filed with the cou nty clerk. If one (1) or more partners is a corporation, the provisions of this section pertaining to corporate appli cants will apply. The applicant corporation or partnership must designate one (1) of its officers or general partners to ac t as its respons ible managing officer.

Such person must complete and sign al l 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 require d by the chief of police in order to verify the information to be included in the application. xv. The city is allowed a reason able time, not t o exceed sixty (60) days, in which to investigate the inform ation 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, pla nning division, or any authorized re presentative 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 17.32.1 67. 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 appli cant who has f urnished 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 materia lly 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 184
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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 canna bis was possessed, cultivated, manufactured, sold, or distributed in compliance with State and/or the r elevant local jurisdiction, as applicable;
b. Any offense relating to possession, cultivation, manufacture, sale, or distribution of cannabis that is illega l under State and/or a local jurisdiction, as applicable;
c. Any offense involving th e use of force or vi olence upon the person of another;
d. Any offense involving theft, fraud, dishonesty or deceit; e. Sales of ca nnabis to a minor or use of a mi nor 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 cannabis- related 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 t he 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 h old the City h armless from any and all claims, damages, legal or enforcement actions, including, but not limited to, any actions or claims associated with violation o f Federal law associated with the operation of the commercial cannabis activity; defend, at its sole expense, any action against the Cit y, 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 lega l 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 Depar tment 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 al l applicable codes adopted by the city, including, without limitation, the building, electrical, and plumbing codes.

5.66.050 - Security Plans

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Security plans shall comply with the following minimum standards:

A. The applicant shall provide adequate securit y 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 val id 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 res troom(s), twenty- four (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 re lations liaison desi gnated 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 t o 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, Buildi ng 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 forc e and effect automotive liabilit y insurance policy with appropriate coverage.

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D. Business shall obtain and maintain in full force and effect at all times while a n 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 i nstallation of an odor absorbi ng ventilation and exhaust system or any other equipment the city determines has the same or better effectiveness , such as:

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

2. An air system that creates negative air pressure b etween 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 sha ll 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 approva l 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 s hall 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.

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I. All new e mployees, managers, or owners, p rior to hirin g, 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 po rtion 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;
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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. Mo difications to Current Medical Marijuana Ordinances . The City Council hereby finds that amendments are required to current municipal codes regulating medical marijuana in o rder 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.
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It is the purpose of this chapter to promote the health, sa fety, morals, general welfare and enjoyment of private property of the residents within the city by restricting the public use and consumption of marijuana; prohibiti ng, 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 c hapter is intend ed 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, Propo sition 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 Profess ions Cod e Section 26001(k) 26001(l), which includes the cultivation, possession, manufac ture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery, or sale of marijuana and marijuana products as provided in Business and Professions Co de 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 Ty pe 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 th e Health and Safety Code, who possess a physician’s recommendation that complies with A rticle 25 (commencing with Section 2525) of Chapter 5 of D ivision 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 zoni ng district. This section shall not affect the right to possess, use o r cultivate marijuana for medicinal purposes as is presently authorized or prohibited by the laws of the State of Californi a 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 d ispensary is any facility or location, whether fixed or mobile, where marijuana is cultivated, made available, and/or distributed by or to three or more p ersons 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:
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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 t o 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 acco rdance 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 i s prese ntly 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 dispensa ry 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 Municipa l 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, Mix ed Use, Office, and Industrial Zones Use Matrix) by adding a section for Delivery only medical marijuana retail is hereby approved:
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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 C ode. 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.

A. Purpose and Intent. It i s 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 op erations 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:
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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 us ed in this sect ion, “existing” mea ns existing at the time the permi t 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 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 Permitte d to Operate Under California State Law.

Section 6. CEQA. The project is exempt under the California Envi ronmental Quali ty 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 o f the remaining sections, subsections, subd ivision, 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 Counc il 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.

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Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 24-0596 Agenda Date: 3/3/2025 Agenda #: 1.

Agenda Item Wording:

Authorization to read ordinances by title only.

Visalia City Council Printed on 2/26/2025Page 1 of 1
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Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 24-0601 Agenda Date: 3/3/2025 Agenda #: 2.

Agenda Item Wording:

Amendment to Construction Management Contract - Authorize the City Manager to approve the Contract Amendment with NV5, Inc. in the amount of $226,491.50 for additional construction management services related to the Downtown Street Lighting Project.

Deadline for Action: 3/3/2025
Submitting Department: Community Development
Contact Name and Phone Number:

Eric Bons, Senior Civil Engineer, [email protected], (559) 713-4350 Chris Crawford, City Engineer, [email protected], (559) 713-4331 Jason Huckleberry, Engineering & Building Director, [email protected], (559) 713-4495 Department Recommendation:

Staff recommends City Council authorize the City Manager to approve the contract amendment with NV5, Inc. in the amount of $226,491.50 for additional construction management services related to the Downtown Streetlight Project.

Background Discussion:

The Downtown Streetlight Project consisted of replacing a 70+ year-old lighting system in Downtown Visalia with a modern lighting system that meets current industry standards. This project replaced an outdated and unsafe high voltage (4,000-volt) electrical lighting system. This system, with aging and deteriorated assets, made the repair and maintenance very unsafe for City maintenance staff. The project included the replacement of the existing system with a new multi-functional streetlight system which provides longer lasting serviceability, normal maintenance per industry standards, lowered operational cost, and an aesthetically pleasing finished product. In addition, the project also included the pavement rehabilitation of Main Street from Willis Street to Santa Fe Street and installation of joint trench facilities to take advantage of construction efficiencies and minimize construction disruptions in the future.

City Council authorized the award to NV5, Inc. to provide the construction management services for the Downtown Streetlight Project and Pavement Rehabilitation Project in the amount of $644,233.00 on December 6, 2021. NV5, Inc. The construction management services were split between the two projects due to the funding sources with $515,386.00 and $128,847.00 totaling $644,233.00 between the Downtown Streetlight Project and the Downtown Pavement Rehabilitation Project respectively.

The contract scope includes construction management services, aid in public outreach efforts, inspection services for nighttime work, and other construction related services as needed.

The Downtown Streetlight Project and the Downtown Pavement Rehabilitation Project were advertised together because they are complimentary projects that impacted the same areas. The Visalia City Council Printed on 2/27/2025Page 1 of 6
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advertised together because they are complimentary projects that impacted the same areas. The City of Visalia entered into a contract with A-C Electric Company on June 16, 2022, for construction of the Downtown Streetlight and Pavement Rehabilitation project in the amount totaling $8,853,574.15.

The project began in July of 2022 and a majority of the underground work for the streetlight project and the majority of the Main Street pavement rehabilitation was completed prior to the Candy Cane Lane parade. The contractor and the construction management team worked diligently to have the majority of the pavement rehabilitation completed in time for the Candy Cane Lane Parade. The construction management team expended about 38% of the contract amount to meet the November 2022 timeline included increased day and nighttime shifts, overtime for inspections, and additional Resident Engineer efforts. The remainder of the construction management contract was expended between November 2022 and May 2023 to provide construction management services for the streetlight improvements and the pavement improvement projects.

The remainder of the pavement rehabilitation was completed by May of 2023 and about 75% of the streetlight improvements were completed. The remainder of the streetlight improvements was completed between Jume 2023 through December of 2023. The streetlight improvement portion of the project continued through December 2023 due to several utility delays, and changes in the construction methods due to physical constraints caused by unknown utilities as well as existing structures. During the extended period throughout 2024, NV5 provided construction management services to coordinate with Caltrans for the acceptance of ADA improvements at the intersections of Main Street at Court Street and Main Street at Locust Street, and an exhaustive effort with the contractor during the closeout stage of the project to provide supporting documentation for the change orders and the contractor’s slow responses.

NV5 provided additional construction management services throughout 2024 for the closeout period which extended longer than anticipated due to slow responsiveness from Caltrans’sPermitting for the acceptance of the ADA improvements at the intersection of Main Street at Court Street and Main Street to Locust Street, construction change order negotiations with the contractor extended due to delayed responses by the contractor regarding closeout documentation, and extra work added by the City during this time period. The extra work directed by the City was for replacement of the GFI receptacles at the top of the light poles with a GFI breaker at the main service point to service the tree lighting and the installation of a programmable timer for the operation of the tree lights.

NV5 construction management provided additional services for coordination with the contractor, utility companies and other outside organizations for the entire duration of these two projects. NV5 provided the additional construction management services needed to complete the two projects and they were conscious of minimizing their efforts to limit the final cost impact on the two projects.

Engineering staff presented this proposed contract amendment to the Change Order Committee on February 5, 2025, for review. The Change Order Committee is a non-appointed committee of technical staff who are not directly involved with the project under consideration. The Committee reviews the contract change order request for completeness, accuracy, constructability, objectivity, consistency, and overall insight. After reviewing the request and discussing the item, the Committee Visalia City Council Printed on 2/27/2025Page 2 of 6
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recommended approval of the contract amendment.

Fiscal Impact:

Downtown Streetlight Project (CP0345)
The streetlight component of the Downtown project is funded by the Measure N (141) Fund with a total project budget of $9.6M. The table below shows the budget summary for the Downtown Streetlight Project:

Project Funding:

Measure N Fund (141) - Streetlighting: $9,600,000
Total Project Funding: $9,600,000
Project Costs:

Design Staff Time & misc. $363,130
Design -Consultant (QK Inc.) $504,916
Construction Management -Staff Time & misc. $205,000 Streetlight Procurement $822,050
Construction Management (NV5, Inc.) $515,386
Construction Management Change Order $226,492
Construction -Streetlighting (AC Electric) $6,279,318 Construction Change Order #1 & #2 $242,706
Total Project Costs: $9,158,998
Summary:

Total Project Funding: $9,600,000
Total Project Cost: ($9,158,998)
Project Funds Remaining: $441,003
Downtown Pavement Rehabilitation Project (CP0373)
The pavement rehabilitation component of the Downtown Project is funded by funds from the Senate Bill 1- Road Maintenance and Rehabilitation Account (SB1 RMRA) Fund (113) with a total project budget of $3,520,800. These funds are for the design and construction of pavement rehabilitation, limited sidewalk repairs & curb ramps, and ADA-compliant parking stalls. The table below shows the budget summary for the Downtown Pavement Project:

Project Funding:

SB1 Funding (113) - Pavement Rehabilitation $3,520,800
Total Project Funding: $3,520,800
Project Costs:

Design Staff Time (Estimated) $56,230
Design -Consultant (QK Inc.) $380,603
Construction Management -Staff Time (Estimated) $49,000 Construction Management (NV5, Inc.) $128,847
Construction Management Change Order $1,337
Construction -Pavement Rehabilitation (AC Electric) $2,574,257 Construction Change Order #1 $249,770
Total Project Costs: $3,440,044
Summary:

Total Project Funding: $3,520,800
Total Project Cost: ($3,440,044)
Project Funds Remaining: $80,757
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Project Funding:

SB1 Funding (113) - Pavement Rehabilitation $3,520,800
Total Project Funding: $3,520,800
Project Costs:

Total Project Funding: $3,520,800
Total Project Cost: ($3,440,044)
Project Funds Remaining: $80,757
Prior Council Action:

March 6, 2023 - City Council authorized Contract Change Order number 1 and 2 for construction of the Downtown Streetlight Project (1410-72000/CP0345-999) in an amount totaling $254,114.49 and Contract Change Order number 1 for the construction of the Downtown Pavement Rehab Project (2390-72000/CP0373-999) in the amount of $249,770.30.

November 7, 2022 - City Council authorized City Manager to approve consultant contract Amendment #2 in the amount not to exceed $44,326 for the Downtown Streetlight Project (CP0345) and consultant contract Amendment #4 for the Downtown Pavement Rehabilitation Project (CP0373) in the amount not to exceed $55,215 for additional construction support with Quad Knopf (QK).

May 16, 2022 - City Council authorized award of the construction contract for the Downtown Streetlight and Pavement Rehabilitation Projects to A-C Electric Company in the amount of $8,853,574.15 and appropriated $2.7M of Measure N (141) Fund after conducting the second of two public hearings to amend the Measure N plan.

May 2, 2022 - City Council conducted the first of two public hearings to amend the Measure N plan and appropriate $2,700,000 towards the Downtown Streetlight Project (CIP 1410-72000/CP0345- 999) to address a shortfall in the Downtown Streetlight project’s budget.

April 7, 2022 - The Measure N Oversight Committee reviewed and approved the Measure N amendment for the appropriation of $2,700,000 towards the Downtown Streetlight Project.

April 4, 2022 - City Council received the bid results for the Downtown Streetlight and Downtown Pavement Rehabilitation Projects for information. Authorized staff to begin the Measure N amendment process for the appropriation of $2.7M towards the Downtown Streetlight Project. City Council authorized the appropriation of $2,141,800 of SB1 RMRA funds towards the Downtown Pavement Rehabilitation Project.

December 6, 2021 - City Council authorized the City Manager to execute an agreement with NV5, Inc. to provide the construction management services for the Downtown Streetlight Project and Pavement Rehabilitation Project in the amount of $644,233.00.

November 15, 2021 - City Council authorized the City Manager to purchase the streetlight poles for the Downtown Streetlight Project from AV Poles and Lighting of Lancaster, CA, in the amount of Visalia City Council Printed on 2/27/2025Page 4 of 6
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the Downtown Streetlight Project from AV Poles and Lighting of Lancaster, CA, in the amount of $822,050.25.

November 15, 2021 - City staff presented the preliminary construction staging plans for the Downtown Streetlight Project and Downtown Pavement Rehabilitation Projects.

June 7, 2021 - City staff presented the recommendation for the appropriation of $2.4M for the Downtown Streetlight Project to the second public hearing. The committee reviewed and approved the recommendations.

May 17, 2021 - City staff presented the recommendation for the appropriation of $2.4M for the Downtown Streetlight Project to the first public hearing. The committee reviewed and approved the recommendations.

April 22, 2021 - City Staff presented the recommendation for the appropriation of $2.4M for the Downtown Streetlight project to the Measure N Oversight Committee. The Committee reviewed and approved the recommendation.

March 15, 2021 - City Staff presented decorative streetlight options for the downtown streetlight project. City Council approved the recommendation for the layout option 3 and streetlight scenario 3 and Measure N amendment process to approve the appropriation of $2.4M for the Streetlight project.

December 07, 2020 - City Staff presented standards for installing Back Flow Preventors within the public right of way. City Council approved the recommendation for the standards.

July 21, 2020 - City Staff presented revised layout options for the Downtown Streetlight Project. City Council approved the recommendation for a core decorative streetlight style.

June 01, 2020 - City Staff presented layout options for the Downtown Streetlight Project. City Council requested additional information from City Staff.

October 21, 2019 - Council authorized award of the design contract for the Downtown Streetlight Project to Quad Knopf for an amount not to exceed $407,098.00.

October 15, 2018 - City Staff presented an update of the downtown streetlights project to City Council during a work session item.

April 16, 2018 - Council approved Resolution No. 2018-25 to designate various road projects for 2018/19 funding from the State of California Road Repair and Accountability Act of 2017 (Senate Bill SB1).

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

I move to authorize the City Manager to approve the contract amendment with NV5, Inc. in the amount of $226,491.50 for additional construction management services related to the Downtown Visalia City Council Printed on 2/27/2025Page 5 of 6
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Streetlight Project.

Environmental Assessment Status: No NEPA Environmental Assessment required for this project.

CEQA Review: Categorical Exemption, Section 15301(c), issued February 06, 2020, for the Downtown Streetlight Project.

Attachments:

1. Project Location Maps

2. Owner Disclosure Statement
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CENTER AVENUEMAIN STREETACEQUIA AVENUE

WILLIS STREET

WEST STREET

FLORAL STREET

ENCINA STREET

LOCUST STREET

COURT STREET

CHURCH STREET

GARDEN STREET

BRIDGE STREET

SANTA FE STREET

OAK AVENUE
Know what'sbelow.before you dig.Call
R N

DOWNTOWN STREETLIGHT AND PAVEMENT REHABILITATION
Ó
90% PROGRESS SET - NOT FOR CONSTRUCTION
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Hwy 198
Alley
E Center Ave
E Noble Ave
E Acequia Ave
W Main St
W Oak Ave
S Burke St
E Mineral King Ave
E School Ave
E Murray Ave
W Noble Ave
E Oak Ave
W Center Ave
W Murray Ave
N W
illis St
W Acequia Ave
N Court St
N Floral St
E Cypress Ave
E Myrtle Ave
N Burke St
N W
est St
N Locust St
N Encina St
N Church St
N Garden St
E Kaweah Ave
W School Ave
W Mineral King Ave
S Bridge St
S Locust St
N Tipton St
N Santa Fe St
N Johnson St
S W
est St
W Myrtle Ave
W Goshen Ave
S W
atson St
S W
illis St
W Kaweah Ave
S Court St
E Goshen Ave
S Encina St
S Edison St
S Church St
S Garden St
S Santa Fe St
S Johnson St
S Stevenson St
S Tipton St
S Oakhurst St
W Cypress Ave
E School Ct
S Bradley Ct
S Cotta Ct
Alley
Alley
Alley
Alley
Alley
S Stevenson St
AlleyAlley
Alley
Alley
E Noble Ave
Alley Alley
Alley
S Santa Fe St
Alley
Alley
Alley
Alley
W Kaweah Ave
Alley
Alley
E Cypress Ave
Alley
Alley
S Santa Fe St

MILL CREEK

JENNINGS
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DOWNTOWN STREETLIGHT PROJECT

LOCATION MAP
LEGEND:

DECORATIVE STREETLIGHTS

NON- DECORATIVE STREETLIGHTS
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Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 24-0611 Agenda Date: 3/3/2025 Agenda #: 3.

Agenda Item Wording:

Water Conservation - Stage 2 - Consider reauthorization of Stage 2 of the Visalia Water Conservation Ordinance and adopt Resolution 2025-06.

Deadline for Action: 3/3/2025
Submitting Department: Public Works
Contact Name and Phone Number: Nick Bartsch, (559) 713-4052 Department Recommendation:

Due to persistent and alternating dry and wet years in the Central Valley, it is the recommendation of staff, with the support of California Water Service, to re-authorize Stage 2 of the Water Conservation Ordinance through the adoption of Resolution 2025-06.

Background Discussion:

In the western United States, particularly in California, alternating cycles of drought and heavy precipitation are typical. Tulare County, specifically, has observed record years of drought and experienced a record low of precipitation in Water Year 2021 (October 1, 2020 - September 30, 2021). As a result, the City Council voted to move into Stage 2 of the Visalia Water Conservation Ordinance (Ordinance), “WaterAlert”.As per the ordinance, “Stage2 shall terminate one year after implementation unless reauthorized by the City Council by resolution.” Stage 2 was then re- authorized by the City Council on April 4, 2022, on March 20, 2023, and on March 4, 2024, due to persistent drought conditions.

Stage 2 of the Ordinance is characterized by restrictions on outdoor water use. Restrictions include reduction of total watering days per week from 3 days per week to 2 days per week as compared to Stage 1, and a complete elimination of irrigation of ornamental turf grasses in the months of December, January, and February. Additional rules and regulations can be found in Section

13.20.070.B. of the attached Ordinance. The varying stages of the Ordinance were intended to reduce the outdoor use of water resources available to the City of Visalia (City), which in turn reduces the overall consumption of water resources and reduces the negative impacts of overdrafts. As a groundwater reliant municipality, the City derives its water supply almost exclusively from the underground aquifer. When water resources are extracted from the underground aquifer more quickly than they can be replaced, it is considered overdraft and can have multiple negative impacts associated with it. The City is particularly vulnerable to groundwater depletion, subsidence, and impacted groundwater quality.

The City has monitored its groundwater levels since the mid-1900s. Over the course of the last 70 years, a significant decrease in groundwater elevation has been observed in the underlying aquifer beneath the City. The lowering groundwater table has been attributed to overdraft. Of the many efforts of the City and surrounding agencies to reduce groundwater consumption, limiting irrigation Visalia City Council Printed on 2/28/2025Page 1 of 3
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efforts of the City and surrounding agencies to reduce groundwater consumption, limiting irrigation days for Visalia residents has been one way the City has been able to reduce its overall consumption.

The City has also taken efforts to manage its water resources in a responsible and effective manner.

One way of maximizing the utility of water extracted from the aquifer is to recycle all sewage water and exchange this tertiary water for clean supplemental surface water. However, the City is unable to re-capture most of the water used outdoors, as this water is eventually returned into the atmosphere where it is carried beyond the subbasin where it can no longer benefit the areas within city limits.

Because the City knows how much water is used indoors by residents of the City, staff can also calculate the amount of water used outdoors by comparing the amount of water extracted and the amount of water returned to the Wastewater Treatment Facility. In 2024, Visalia residents used approximately 53% of the total water produced to irrigate ornamental landscapes, up slightly from 50% in 2023, but down from 57% in 2022. Because water used outdoors for the purposes of landscape irrigation is considered irrecoverable, it is crucial that the City continues to implement key water conservation policies and programs to continue to reduce water waste and improve water use efficiency.

The City’s Division of Water Conservation recognizes that while Water Year 2023 produced significantly more precipitation than in years prior, and Water Year 2024 saw average precipitation, the 2025 water year appears to be heading to be a low water year a this point. (Water years are October 1 - September 30). While Water Years can vary, recent years have primarily been below average, and there is concern that alternating between Water Conservation Stages too drastically, or too often, can lead to confusion of appropriate watering days and regulation. Drier than normal conditions thus far in the current 2025 season are indicating another example of historically alternating cycles of drought and heavy precipitation. Finally, the City is part of the Kaweah Sub- Basin, which is a severely over-drafted basin, and must meet strict State water regulations.

Therefore, it is believed that a less restrictive stage of the Water Conservation Ordinance should only be adopted when annual precipitation demonstrates a more stable pattern, and conditions of the chronically lowering groundwater table improve.

City staff met with representatives from California Water Service (Cal Water), the City’s water purveyor, to discuss the effectiveness of current conservation programs, techniques, and the specifics of the City’sWater Conservation Ordinance. Cal Water supports the re-authorization of Stage 2 of the current ordinance and has recommended additional review and analysis of these provisions to refine the definitions, prohibitions, stages, and enforcement used to ensure the ordinance continues to be an effective tool toward accomplishing the City’sconservation goals. City staff will be working with Cal Water over the coming months to consider any alterations to the current ordinance and will bring back recommendations to the Council for consideration prior to the changes to the watering schedule in the fall.

Fiscal Impact:

N/A
Prior Council Action:
· March 2024, March 2023 and April 2022- Stage 2 of the Water Conservation Ordinance was reauthorized by the City Council by recommendation of Staff.

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· March 2021 - Stage 2 of the Water Conservation Ordinance was implemented, by recommendation of Staff.
· July 2020 - City Council approved a transition to Stage 2 of the Water Conservation Ordinance to take effect in March of 2021.
· October 2019 - City Council approved minor amendments to the Water Conservation Ordinance.
· August 2017 - City Council approved a transition into Stage 1 of the Water Conservation Ordinance.
· April 2017 - Reauthorization of Stage 2 of the Water Conservation Ordinance. · May 2016 - The City Council adopted the new Water Conservation Ordinance and reimplementation of Stage 2.
· June 2015 - Adoption of the revised Water Conservation Ordinance and implementation of Stage 2.

Other: N/A
Alternatives: City Council may choose to take no action on this item, consequentially reverting the City of Visalia back to Stage 1 of the Water Conservation Ordinance.

Recommended Motion (and Alternative Motions if expected):

I move to adopt Resolution 2025-06 reauthorizing Stage 2 of the Visalia Water Conservation Ordinance.

Environmental Assessment Status: Click or tap here to enter text.

CEQA Review: N/A
Attachments:

1. Resolution 2025-06

2. Water Conservation Ordinance

3. Water Table Chart

4. Cal Water - Water Conservation - Stage 2 - 2025 Letter of Support Visalia City Council Printed on 2/28/2025Page 3 of 3
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RESOLUTION 2025-06

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VISALIA REAUTHORIZING STAGE 2 OF THE WATER CONSERVATION ORDINANCE

WHEREAS, the City of Visalia Water Conservation Ordinance was enacted by the City Council to control unnecessary consumption of the available potable water supplies in the City; and

WHEREAS, the City Council implemented Stage 2 due to the ongoing drought, declarations of drought emergency by both the State of California and the County of Tulare, and mandatory restrictions on urban water use; and

WHEREAS, the 2024/25 snowpack was approximately 47% of historical average and the drought continues into 2025; and

WHEREAS, the State of California has extended mandatory urban water reductions including on the California Water Service Company, the City’s urban water supplier; and

WHEREAS, the City Manager recommends that Stage 2 of the Water Conservation Ordinance be extended for another year to further reduce the City of Visalia’s water use for the reasons stated;

NOW, THEREFORE, BE IT RESOLVED, the City Council of the City of Visalia hereby reauthorizes Stage 2 of the Water Conservation Ordinance effective April 4, 2025, through April 4, 2026.

PASSED AND ADOPTED: March 3, 2025, LESLIE B. CAVIGLIA, CITY CLERK

STATE OF CALIFORNIA)
COUNTY OF TULARE ) ss.

CITY OF VISALIA )

I, Leslie B. Caviglia, City Clerk of the City of Visalia, certify the foregoing is the full and true Resolution 2025-06 passed and adopted by the Council of the City of Visalia at a regular meeting held on February 18, 2025.

Dated: March 4, 2025 LESLIE B. CAVIGLIA, CITY CLERK

By Reyna Rivera, Chief Deputy City Clerk

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Chapter 13.20

WATER CONSERVATION
Sections:

13.20.010 Purpose.

13.20.020 Short title.

13.20.030 Authorization.

13.20.040 Application.

13.20.050 Definitions.

13.20.060 Permanent water conservation requirements--Prohibition against waste.

13.20.070 Water conservation stages.

13.20.080 Mandatory conservation phase implementation.

13.20.090 Enforcement.

13.20.100 Public nuisance--Definitions.

13.20.110 Enforcement officers.

13.20.120 Exceptions.

13.20.130 Severability.

13.20.010 Purpose.

It is the purpose and intent of this chapter to prevent waste or unreasonable use or unreasonable method of use of water in the city.
(Ord. 2019-11, 2019; Ord. 2015-07 § 2, 2015)

13.20.020 Short title.

This chapter shall be known as the “Water Conservation Ordinance of the City of Visalia.” (Ord. 2019-11, 2019; Ord. 2015-07 § 2, 2015)

13.20.030 Authorization.

The City Manager, or designee, is authorized and directed to implement the applicable provisions of this chapter upon their determination that such implementation is necessary to protect the public welfare and safety. (Ord. 2019-11, 2019; Ord. 2015-07 § 2, 2015)

13.20.040 Application.

A. The provisions of this chapter shall apply to all persons, customers, and property within the limits of the City.

B. The provisions of this chapter do not apply to uses of water where necessary to protect public health and safety or for essential government services such as police, fire, and other similar emergency services. (Ord. 2019-11, 2019; Ord. 2015-07 § 2, 2015)

13.20.050 Definitions.

For the purposes of this chapter, the following terms have the meanings set forth in this section. “Commercial nursery” means the use of land, buildings or structures for the growing and/or storing of flowers, fruit trees, ornamental trees, vegetable plants, shrubs, trees and similar vegetation for the purpose of transplanting, for use as stock or grafting, and includes the retail sale or wholesale distribution of such items directly from the premises/lot. “Drip irrigation system” means a non-spray, low-pressure, and low volume irrigation system utilizing emission devices with a precipitation or flow rate measured in gallons per hour (GPH), designed to slowly apply small volumes of water at or near the root zone of plants or other landscaping and, in no event, emits more than four (4) gallons of water per hour. “Irrigation system” means the components of a system meant to apply water to an area for the purpose of irrigation, including, but not limited to, piping, fittings, sprinkler heads or nozzles, drip tubing, valves, and control wiring. “Large Landscape Area” means an area of vegetation at least three (3) acres in size supporting a business necessity or 210
public benefit use such as parks, golf courses, schools, and cemeteries. “Measureable rainfall” means any amount of precipitation of more than one- quarter (1/4) inch (0.25”). “Ornamental landscape” means plants for the purpose of improving the aesthetic appearance of property, including but not limited to, trees, shrubs, bushes, flowers, ground cover, turf, lawns, and grass but, does not include crops or other agricultural products or special landscape areas.
“Person” means any natural person or persons, corporation, public or private entity, governmental agency or institution, or any other user of water within the limits of the City of Visalia. “Plumbing fixture” means a receptacle or device that is connected to a water supply system, including, but not limited to, pipes, toilets, urinals, showerheads, faucets, washing machines, water heaters, tubs, and dishwashers. “Potable water” means water which conforms to the federal and state standards for human consumption. “Runoff” means water which is not absorbed by the soil or landscape to which it is applied and flows from the landscape onto other areas.
“Sports Field” means a public or private facility improved with apparatus and/or striping supporting a public benefit use or business necessity that provides turf areas as playing surface for regularly scheduled (at least weekly) individual and team sports, and does not include a facility on a residential property. “Turf” means a ground cover surface of grass that can be mowed. “Water feature” means a design element where open, artificially supplied water performs an aesthetic or recreation function, including, but not limited to, ponds, lakes, waterfalls, fountains, and streams. “Overseeding” means the process of planting new cool climate tolerant grasses (Fescue, Ryegrass, Kentucky Bluegrass, etc.), to help combat growth and appearance when traditional turf grass goes dormant during the fall and winter months. (Ord. 2019-11, 2019; Ord. 2016-08 § 2 (part), 2016)

13.20.060 Permanent water conservation requirements--Prohibition against waste.

The following water conservation requirements are effective at all times and are permanent. Violations of this section shall be considered waste and an unreasonable use of water. The prohibitions shall apply to all persons year round unless modified by adoption of a more stringent water conservation stage.

Limits on watering hours.

Watering or irrigating of ornamental landscape, turf, or other vegetated area is prohibited between the hours of 8:00 a.m. and 6:00 p.m. on any day, except by the use of a hand-held bucket or similar container, a hand-held hose fitted with a positive shut-off nozzle or device that causes it to cease dispensing water immediately when not in use, or for very short periods of time for the express purpose of adjusting or repairing an irrigation system.

No use of unattended hose without timer.

Irrigation utilizing an unattended hose sprinkler, soaker hose, or other irrigation system is prohibited unless the hose is fitted with a hose faucet timer.

No excessive water flow or runoff.

The use of water which causes water to flow or run off onto adjacent property, non- irrigated areas, sidewalk, driveway, street, parking lot, alley, gutter, ditch, or drain, etc., is prohibited. Every water user is deemed to have his/her water distribution lines and facilities under his/her control at all times and to know the manner and extent of his/her water use and runoff.

No watering during rain.

Irrigation of ornamental landscape or other vegetated areas is prohibited during and within 48 hours of measureable rainfall.

Limits on washing down paved surfaces and buildings.

The washing of building exteriors, sidewalks, driveways, parking areas, tennis courts, patios, or other paved areas is prohibited except where the hose is fitted with a positive shut-off nozzle or device that causes it to cease dispensing water immediately when not in use.

Obligation to fix leaks, breaks or malfunctions.

The excessive use, loss or escape of water through breaks, leaks or malfunctions in the water user's plumbing or distribution facilities for any period of time after such escape of water should reasonably have been discovered and corrected is prohibited. It shall be presumed that a period of forty-eight (48) hours after discovery is a reasonable time within which to correct such leak or break.

Recirculating water required for water features.

Operating a water feature that does not use recirculated water is prohibited.

Limits on washing vehicles.

Using water to wash or clean automobiles, trucks, motorcycles, trailers, boats, airplanes, or other types of mobile equipment is prohibited, except by use of a hand-held bucket or similar container or hand-held hose equipped with a positive self-closing water shut-off nozzle or device. This subsection does not apply to commercial car washing facilities.

Drinking water served upon request only.

Eating or drinking establishments, including but not limited to restaurants, hotels, cafes, cafeterias, bars, or other public places where food or dinks are sold, served, or offered for sale, are required to
serve drinking water only upon request.

Commercial lodging establishments must provide guests option to decline daily linen services.

Hotels, motels and 211
other commercial lodging establishments must provide customers the option of not having towels and linen laundered daily.

Commercial lodging establishments must prominently display notice of this option in each bathroom using clear and easily understood language.

No installation of single pass cooling systems.

Installation of single pass cooling systems is prohibited in new buildings.

No installation of non-recirculating water systems in commercial carwash and laundry systems.

Installation of non-
recirculating water systems is prohibited in new commercial conveyor carwash and new commercial laundry systems.

Restaurants required to use water conserving dish wash spray valves.

Food preparation establishments, such as
restaurants or cafes, are prohibited from using non-water conserving dish-wash spray valves.

N. The draining of swimming pools more than once every three years, except for structural repairs, chemical imbalance, or to comply with public health standards determined by the County Health Officer or City code enforcement officer, shall be prohibited. Any resident whose swimming pool is drained by order of the City or County for failure to maintain it properly will also be issued a notice of violation. The draining of pools for reasons of health and safety hazards as determined by a City officer or department of health is permitted. Pool drain permit applications due to structural repairs or chemical imbalance shall include the results of a pool water test conducted by an independent testing organization which shows a cyanuric acid level above 100 parts per million, total dissolved solids over 2,500 parts per million, or calcium over 450 parts per million, or a statement of repairs from a licensed pool contractor stating the nature and duration of repairs to be made and the date on which the pool will be drained.

New pools and spas required to have covers.

A cover must be installed when constructing a new pool or spa or when a City building permit is issued for repair or remodeling a pool or spa. (Ord. 2019-11, 2019; Ord. 2016-08 § 2 (part), 2016)

13.20.070 Water conservation stages.

A. Stage 1. Water Watch. Upon implementation by the City Manager and publication of notice, the following restrictions shall apply to all persons in addition to the prohibited uses in Section

13.20.060.

1. Irrigation of ornamental landscapes is limited to three (3) days per week in the months of March through November, and one (1) day per week in December, January, and February, as follows:
a. Locations bearing a street address ending in an odd number shall be permitted to irrigate only on Tuesday, Thursday and Saturday in March through November, and only on Saturday in December, January and February. b. Locations bearing a street address ending in an even number shall be permitted to irrigate only on Wednesday, Friday and Sunday in March through November, and only on Sunday in December, January and February. c. The foregoing restrictions do not apply to:
i. Landscape irrigation zones that exclusively use drip irrigation systems. ii. Irrigation of ornamental landscapes with the use of an attended hand-held bucket or similar container, or an attended hand-held hose equipped with a positive self-closing shut-off nozzle or device. iii. Operation for very short periods of time for the express purpose of adjusting or repairing an irrigation system. A City of Visalia sign or equivalent must be displayed notifying the public of the repairs while the area remains wet.

2. Washing down hard or paved surfaces, including but not limited to sidewalks, walkways, driveways, parking areas, tennis courts, patios or alleys, is prohibited except when necessary to alleviate safety or sanitary hazards, and then only by use of a hand-held bucket or similar container, a hand-held hose fitted with a positive shut-off nozzle or device, or a low- flow high-pressure washer.

3. Overseeding of lawns is prohibited. Exception is provided for maintenance of Sports Fields and golf course greens and tees.

4. Stage 1 of this ordinance will be enforced by the issuance of one warning for violation before the issuance of a citation in accordance with Section

13.20.090. Citations will be issued without a warning for willful and egregious violations.

Willful and egregious violations include draining a pool without a permit or other violations as determined by the City Manager or designee.

B. Stage 2. Water Alert. Upon implementation by the City Manager, publication of notice, and ratification by resolution of the City Council, the following restrictions shall apply to all persons in addition to the prohibited uses in section

13.20.060.

Stage 2 shall terminate one (1) year after implementation unless reauthorized by the City Council by resolution.

1. Irrigation of ornamental landscapes is prohibited in the months of December, January and February, and is limited two (2) days per week in March through November, as follows:
a. Locations bearing a street address ending in an odd number shall be permitted to irrigate only on Tuesday and Saturday in March through November; no irrigation is allowed in December, January, or February. b. Locations bearing a street address ending in an even number shall be permitted to irrigate only on Wednesday and 212
Sunday in March through November; no irrigation is allowed in December, January, or February. c. The foregoing restrictions do not apply to:
i. Landscape irrigation zones that exclusively use drip irrigation systems. ii. Irrigation of non-turf ornamental landscapes with the use of an attended hand-held bucket or similar container, or an attended hand-held hose equipped with a positive self-closing shut-off nozzle or device. iii. Operation for very short periods of time for the express purpose of adjusting or repairing an irrigation system. A City of Visalia sign or equivalent must be displayed notifying the public of the repairs while the area remains wet. iv. Sports Fields and public and private golf course greens and tees may deviate from the mandatory irrigation day and time restrictions in order to maintain play areas and accommodated event schedules by submitting to the City Manager or designee an alternative watering schedule that reduces overall water use by 20% from the average used the year prior to Stage 2 (Stage 4 in prior ordinance) declaration. Applicants must reapply for the exception annually and provide documentation that the alternative watering schedule achieved the required water use reduction. Documentation may consist of water utility bills, pump electric utility bills, or other documentation that provides the required information. v. Large Landscape Areas may deviate from the mandatory irrigation day restrictions by submitting to the City Manager or designee an alternative watering schedule that reduces overall water use by 30% from the average used the year prior to the Stage 2 (Stage 4 in prior ordinance) declaration. Applicants must reapply for the exception annually and provide documentation that the alternative watering schedule achieved the required water use reduction. Documentation may consist of water utility bills, pump electric utility bills, or other documentation that provides the required information. vi. A plant establishment exception for new permanent landscapes is allowed by permit. The plant establishment exception allows for irrigation on non-watering days for a period of 21 days. Plant establishment permits are issued for new or rehabilitated landscape projects that have been approved by the Community Development Department in accordance with the State Model Water Efficient Landscape Ordinance, unless and until the City adopts a local Water Efficient Landscape Ordinance, in which case the local ordinance shall apply. Otherwise, the plant establishment exception does not apply to installation of turf or annual plants. and no more than one (1) plant establishment permit will be issued for an address per year.

2. Overseeding of lawns is prohibited. Exception is provided for maintenance of Sports Fields and golf course greens and tees.

3. Filling or re-filling ornamental lakes or ponds is prohibited, except to the extent needed to sustain aquatic life, provided that such animals are of significant value and have been actively managed within the water feature prior to implementation of Stage 2 or higher in this chapter.

4. The washing of sidewalks, driveways, parking areas, courts, patios, or other paved areas is absolutely prohibited, unless it is necessary for the
health and safety of the public, in which case a low-flow high-pressure washer must be used.

5. Washing of buildings is prohibited unless preparing the building for sale or for painting, in which case a low-flow high-pressure washer must be used.

6. All outdoor mist cooling systems related to human comfort are prohibited.

7. Use of temporary water slides is prohibited.

8. Stage 2 of this ordinance will be enforced by the issuance of one warning for violation before the issuance of a citation in accordance with Section

13.20.090. Citations will be issued without a warning for willful and egregious violations.

Willful and egregious violations include draining a pool without a permit or other violations as determined by the City Manager or designee.

C. Stage 3. Water Warning. Upon implementation by the City Manager, publication of notice, and ratification by resolution of the City Council, the following restrictions shall apply to all persons in addition to the prohibited uses in section

13.20.060.

Stage 3 shall terminate one (1) year after implementation unless reauthorized by the City Council by resolution.

1. Irrigation of ornamental landscapes is prohibited in the months of December, January and February, and is limited to one (1) day per week in March through November, as follows:
a. Locations bearing a street address ending in an odd number shall be permitted to irrigate only on Saturday in March through November; no irrigation is allowed in December, January, or February. b. Locations bearing a street address ending in an even number shall be permitted to irrigate only on Sunday in March through November; no irrigation is allowed in December, January, or February. c. The foregoing restrictions do not apply to:
i. Landscape irrigation zones that exclusively use drip irrigation systems. ii. Irrigation of non-turf ornamental landscapes with the use of an attended hand-held bucket or similar container, or an attended hand-held hose equipped with a positive self-closing shut-off nozzle or device. iii. Operation for very short periods of time for the express purpose of adjusting or repairing an irrigation system. A 213
City of Visalia sign or equivalent must be displayed notifying the public of the repairs while the area remains wet. iv. Sports Fields and public and private golf course greens and tees may deviate from the mandatory irrigation day and time restrictions in order to maintain play areas and accommodated event schedules by submitting to the City Manager or designee an alternative watering schedule that reduces overall water use by 50% from the average used the year prior to Stage 2 declaration, or 30% from the average used the year prior to the Stage 3 declaration. Applicants must reapply for the exception annually and provide documentation that the alternative watering schedule achieved the required water use reduction. Documentation may consist of water utility bills, pump electric utility bills, or other documentation that provides the required information.
v. Large Landscape Areas may deviate from the mandatory irrigation day restrictions by submitting to the City Manager or designee an alternative watering schedule that reduces overall water use by 60% from the average used the year prior to Stage 2 declaration, or 60% from the average used the year prior to the Stage 3 declaration. Applicants must reapply for the exception annually and provide documentation that the alternative watering schedule achieved the required water use reduction. Documentation may consist of water utility bills, pump electric utility bills, or other documentation that provides the required information.
vi. A plant establishment exception for new permanent landscapes is allowed by permit. The plant establishment exception allows for irrigation on non-watering days for a period of 21 days. Plant establishment permits are issued for new or rehabilitated landscape projects that have been approved by the Community Development Department in accordance with the State Model Water Efficient Landscape Ordinance, unless and until the City adopts a local Water Efficient Landscape Ordinance, in which case the local ordinance shall apply. Otherwise, the plant establishment exception does not apply to installation of turf or annual plants. and no more than one (1) plant establishment permit will be issued for an address per year.

2. The washing of automobiles, trucks, motorcycles, trailers, boats, airplanes, or other types of mobile equipment is permitted only on Saturday or Sunday. Exception. Washing may be done at any time on the immediate premises of a commercial carwash or fleet maintenance facility. Further, such washing may be exempted from these regulations if the health, safety and welfare of the public are contingent upon frequent vehicle cleanings, such as garbage trucks and vehicles to transport food and perishables.

3. Overseeding of lawns is prohibited. Exception is provided for maintenance of Sports Fields and golf course greens and tees.

4. Filling or re-filling ornamental lakes or ponds is prohibited, except to the extent needed to sustain aquatic life, provided that such animals are of significant value and have been actively managed within the water feature prior to implementation of Stage 2 or higher in this chapter.

5. The washing of sidewalks, driveways, parking areas, courts, patios, or other paved areas is absolutely prohibited, unless it is necessary for the health and safety of the public, in which case a low-flow high-pressure washer must be used.

6. Washing of buildings is prohibited unless preparing the building for sale or for painting, in which case a low-flow high-pressure washer must be used.

7. All outdoor mist cooling systems related to human comfort are prohibited.

8. Use of temporary water slides is prohibited.

9. Use of portable water for street cleaning with trucks, except for initial wash-down for construction purposes (if street sweeping is not feasible).

10. Use of potable water for construction purposes, such as consolidation of backfill, dust control, or other uses unless no other source of water or method can be used.

11. Stage 3 of this ordinance will be enforced by the issuance of one warning for violation before the issuance of a citation in accordance with Section

13.20.090. Citations will be issued without a warning for willful and egregious violations.

Willful and egregious violations include draining a pool without a permit or other violations as determined by the City Manager or designee.

D. Stage 4. Water Emergency. Upon implementation by the City Manager, publication of notice, and ratification by resolution of the City Council, the following restrictions shall apply to all persons in addition to the prohibited uses in section

13.20.060. Stage 4 shall terminate one (1) year after implementation unless reauthorized by the City Council by resolution.

1. Watering or irrigating lawn, landscape, or other vegetated area with potable water is prohibited. This restriction shall not apply to the following categories of use:
a. Maintenance of non-turf vegetation, including trees and shrubs, that are watered using a hand-held bucket or similar container or a hand-held hose equipped with a positive self-closing shut-off nozzle or device. b. Maintenance of existing landscape necessary for fire protection. c. Maintenance of existing landscape for soil erosion control. d. Maintenance of plant materials identified to be rare or essential to the well-being of protected species. e. Actively irrigated environmental mitigation projects. 214

2. Overseeding of lawns is prohibited.

3. Filling or re-filling ornamental lakes or ponds is prohibited, except to the extent needed to sustain aquatic life.

4. Washing of buildings is prohibited unless preparing the building for sale or for painting, in which case a low-flow high-pressure washer must be used.

5. All outdoor mist cooling systems related to human comfort are prohibited.

6. Use of temporary water slides is prohibited.

7. Draining and refilling of swimming pools is prohibited except that a pool may be drained by permit to comply with public health standards as determined by the County Health Officer or City code enforcement officer. Any resident whose swimming pool is drained by order of the City or County for failure to maintain it property will also be issued a notice of violation. The draining of pools for reasons of health and safety hazards as determined by a City officer or department of health is permitted. Drained pools may not be refilled.

8. Washing automobiles, trucks, trailers, boats, airplanes, and other vehicles is prohibited except at a commercial carwash or fleet vehicle washing facility.

9. Use of potable water for construction purposes, such as consolidation of backfill, dust control, or other uses is prohibited.

10. Stage 4 of this chapter will be enforced by the issuance of a citation in accordance with Section

13.20.090 without a
warning.
(Ord. 2019-11, 2019; Ord. 2016-08 § 2 (part), 2016)

13.20.080 Mandatory conservation phase implementation.

The City Manager or designee, with the assistance of any operator of a water utility having customers within the City, shall monitor the projected supply and demand for water within the City and shall recommend to the City Manager the extent of the conservation required through the implementation and/or termination of particular conservation stages in order to assure the water supply of the City.

Thereafter, the City Manager, as directed by administrative policies, may order that the appropriate phase of water conservation be implemented or terminated in accordance with the applicable provisions of this chapter. Said order shall be ratified by the City Council by resolution and made by public announcement and shall be published a minimum of one time in a daily newspaper of general circulation.
(Ord. 2019-11, 2019; Ord. 2015-07 § 2, 2015)

13.20.090 Enforcement.

A. It is one of the objectives of the City Council of the City that the citizens of Visalia be encouraged to voluntarily comply with the provisions of the chapter. Therefore, in furtherance of said objective, the enforcement of the chapter will permit the issuance of up to two warnings for violations of Sections

13.20.060 or

13.20.070, by way of written notices of violation to the violating water user, before the issuance of a citation for said violations B. Notwithstanding the foregoing, any person violating any provision of Sections

13.20.060 or

13.20.070 shall be deemed
guilty of an infraction and upon conviction thereof shall be punishable by a fine not to exceed six-hundred twenty-five dollars ($625.00). Each day that a violation continues shall be regarded as a new and separate offense. The fine for a first violation may be waived by attending a City water conservation class. (Ord. 2019-11, 2019; Ord. 2016-08 § 2 (part), 2016)

13.20.100 Public nuisance--Definitions.

A. In addition to any other remedies which may otherwise be available to the City, the City Council makes the following findings and declarations;
B. The waste of water, as that term is defined herein, on public or private property within the City, is found to contribute to and compound drought conditions which may, from time to time, exist in the City, to the detriment of one of our most precious and finite resources, to wit, water. Such conditions cause injury to the health, safety and general welfare of the citizens of Visalia. Therefore, the waste of water within the City, on private or public property, except as expressly permitted in this chapter, is declared to constitute a public nuisance which may be abated in an action brought on behalf of the people of the state of California, by the City attorney, in any court of competent jurisdiction. (Ord. 2019-11, 2019; Ord. 2015-07 § 2, 2015)

13.20.110 Enforcement officers.

A. All peace officers and persons authorized by law to issue citations within the City shall, in conjunction with duties imposed by the law, diligently enforce the provisions of this chapter.

B. Pursuant to the provisions of Section 836.5 of the Penal Code, the following officers and employees of the City are 215
designated as enforcement officers and authorized to issue citations for enforcement of this ordinance:

1. Director of public works;

2. City engineer;

3. Building official;

4. Industrial waste inspector;

5. Public works inspector;

6. Building inspector;

7. Neighborhood preservation manager;

8. Code enforcement officer, technician, or specialist;

9. Fire marshal;

10. Fire prevention inspector;

11. Natural resource conservation technician;

12. Water conservation education coordinator;

13. Natural resource conservation manager or designee.

C. Employees of any operator of a water utility having customers within the City, including California Water Service Company, are authorized by this chapter to issue written notices of violations of Sections

13.20.060 or

13.20.070, but are
not authorized by law to issue citations for said violations. (Ord. 2019-11, 2019; Ord. 2015-07 § 2, 2015)

13.20.120 Exceptions.

Consideration of written applications for exceptions regarding regulations and restrictions on water use not otherwise set forth in previous sections of this chapter shall be as follows:

A. Written application for exception may be granted by the City Manager or designee.

B. Exceptions may be granted if:

1. Compliance with this chapter would cause an unnecessary and undue hardship to the Applicant, including, but not limited to, adverse economic impacts, such as loss of production or jobs;

2. Compliance with this ordinance would cause a condition affecting the health, sanitation, fire protection or safety of the applicant or the public; or

3. Compliance with this chapter would prevent the use of recycled or reclaimed water which use would conserve the City's potable water supplies.
(Ord. 2019-11, 2019; Ord. 2015-07 § 2, 2015)

13.20.130 Severability.

If any section, subsection, sentence, clause or phrase of this chapter is for any reason held to be unconstitutional or invalid, such decision shall not affect the validity of the remaining portions of this chapter. (Ord. 2019-11, 2019; Ord. 2015-07 § 2, 2015)
216
217

218

219

Feb-2020 -128.0
Apr-2020 -131.0
Jun-2020 -134.0
Aug-2020 -143.0
Oct-2020 -135.0
Dec-2020 -132.0
Feb-2021 -132.0
Apr-2021 -134.8
Jun-2021 -140.6
Aug-2021 -145.4
Oct-2021 -148.6
Dec-2021 -146.1
Feb-2022 -143.7
Apr-2022 -144.8
Jun-2022 -149.8
Aug-2022 -152.9
Oct-2022
Dec-2022 -154.2
Feb-2023 -150.9
Apr-2023 -147.7
Jun-2023 -149.7
Aug-2023 -150.2
Oct-2023 -148.2
Dec-2023 -143.6
Feb-2024 -141.6
Apr-2024 -142.9
Jun-2024 -143.3
Aug-2024 -142.0
Oct-2024 -144.5
Dec-2024 -143.3

0.70 5.46
2023
2024
-148.38
-142.93
-7.85
-7.40
-133.83
-141.24
-149.09
-1.50
2021
2020
2022
5-yr annual avg decline: -2.12
10-yr annual avg decline: -1.94
20-yr annual avg decline: -2.10
25-yr annual avg decline: -2.76
30-yr annual avg decline: -2.65
1948 to date: -1.80
220

2024 Water Year https://cdec.water.ca.gov/reportapp/javareports?name=PRECIPOUT.202409

2023 Water Year https://cdec.water.ca.gov/reportapp/javareports?name=PRECIPOUT.202309

-180.0
-160.0
-140.0
-120.0
-100.0
-80.0
-60.0
-40.0
-20.0

0.0 Visalia Groundwater Levels 1948-2024 (feet)
221
WWTP recovered water vs Cal-Water yearly production
2024 – 46.76% Recovered vs. 53.24% used outdoors
2023 – 49.80% Recovered vs. 50.20% used outdoors
2022 – 43% Recovered vs. 57% used outdoors

222

calwater.com
February 25, 2025

The Honorable Brett Taylor, Mayor
City of Visalia
220 N. Santa Fe Street
Visalia, CA 93292

Mayor Taylor:

I am writing to express our support for the extension of the Water Conservation Ordinance (Chapter 13.20) at the current Stage (2).

This Ordinance, combined with our award-winning conservation program, has resulted in increased water-use efficiency and significant reductions in water use over a long period.

We recommend additional review and analysis before the next opportunity for the Ordinance to be considered. This may include potential refinement of definitions and prohibitions, water conservation stages, enforcement, and exceptions to ensure the Ordinance continues accomplishing its goals.

We are proud of our partnership with the City of Visalia and look forward to continuing our coordination to support Visalia residents and strengthen water-use efficiency.

Sincerely,

Stephen Johnson

Stephen Johnson
223
Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 25-0002 Agenda Date: 3/3/2025 Agenda #: 4.

Agenda Item Wording:

Valley Strong Stadium Batting Cage Contract - Accept the construction proposal for phase 2, task 1 - batting cage & related site work by the design-builder, 4CGlobal, Inc. dba 4Creeks Build for a lump sum amount of $1,867,198.84.

Deadline for Action: 3/3/2025
Submitting Department: Community Development
Contact Name and Phone Number:

Rebecca Keenan, Senior Civil Engineer, 713-4541; [email protected] Christopher Crawford, City Engineer, 713-4331; [email protected] Jason Huckleberry, Eng & Bldg Director, 713-4495; [email protected] Department Recommendation:

Staff recommends that the City Council accept the construction proposal for phase 2, task 1 - batting cage & related site work by the design-builder, 4CGlobal, Inc. dba 4Creeks Build for a lump sum amount of $1,867,198.84
Background Discussion:

This project will expand and retrofit the existing clubhouse at the Valley Strong Stadium (Recreation Park Baseball Stadium) to comply with Minor/Major League Baseball (MiLB/MLB) requirements. The proposed improvements will expand the existing clubhouse to 7,355 SF, demolish the existing 1,920 SF batting cage/pitching tunnel, and replace it with a 5,804 SF pitching facility. The new batting cage/pitching facility will include a 4,200 SF tunnel, with the remaining space allocated for a weight room, equipment storage room, and team storage room (MLB club).

At this time, as per their design-build agreement, 4Creeks has prepared a lump sum cost proposal of $1,867,198.84, for Phase 2, Task 1 - Batting Cage & Related Site Work, which includes the following components:

Task 1 - Batting Cage & Related Site Work Components:
· Demolition, clearing, and grubbing of new batting cage location and impacted facilities, such as the existing trash enclosure
· Demolition related to accessibility path to Jacob Street · Curb, gutter, sidewalk and pavement modifications related to the accessibility path to Jacob Street.
· Storm drain improvements related to the new batting cage · Pre-fabricated metal building for the new batting cage · New batting cage building will include the following:
o Two pitching tunnels with lighting, netting, and an evaporative cooling system (4,246 Visalia City Council Printed on 2/28/2025Page 1 of 5
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File #: 25-0002 Agenda Date: 3/3/2025 Agenda #: 4.
o Two pitching tunnels with lighting, netting, and an evaporative cooling system (4,246 square feet)
o Team storage room - MiLB Club (209.5 square feet)
o Equipment storage room (302.9 square feet)
o Weight room with air conditioning system (758.5 square feet) · Landscaping
· Minor parking lot signage & striping
The bid for this Task 1 includes some value engineering related to the electrical system. Since Task 2 - Clubhouse is still under design, the total electrical system requirement is still to be determined. At this time, the design-builder will install the conduit related to the clubhouse, with a connection to the existing clubhouse system. Some existing electrical infrastructure, such as panels and conduit may need to be upgraded during Task 2. Those upgrades could result in increased costs. This is represented by the estimated $250,000 shown in Tables 1 & 2 below and could push the overall project cost beyond the agreed upon amounts between the City and First Pitch Entertainment. As per the existing agreement, any costs over the $7,656,698 project total shown in Table 2 are to be shared 50/50 up to $1,000,000 each.

Fiscal Impact:

Authorization of the action recommended in this staff report falls within the project budget established at the February 3, 2025, City Council meeting. At that meeting, the project was estimated at $5,368,700 (including a 10% construction contingency) which is greater than the $4,342,028 amount included in the agreement between the City of Visalia and First Pitch. However, other cost estimates have risen to the total project cost could be above original estimates, but within the amount, including overages, that the two parties agreed to.

TABLE 1
Updated Estimated Budget 1570-72000/CP0758-999
Valley Strong Stadium
Clubhouse and Batting Cage/Pitching Tunnel
Design Cost
4Creeks Topographic Survey Services $11,500
4Creeks Design Services $420,000
Contingency $25,000
Design Subtotal: $456,500
Direct Construction Cost
Task 1 - Batting Cage (this award) $1,867,198.84
Task 2 - Clubhouse (estimated) $2,597,216.18
Possible Future Electrical Cost Increase $250,000
Subtotal $4,714,415.02
Construction Contingency (5%) $235,700.00
Estimated Construction Cost Subtotal $4,950,115.02
Construction Support
Construction Manager $221,150
Estimated Construction Survey Staking $41,100
Estimated Material Testing/Special Inspection $74,100
Construction Support Subtotal $336,350
Estimated Project Cost $5,743,000
Current Budget $4,342,028.00
Potential Deficit -$1,400,972.00
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File #: 25-0002 Agenda Date: 3/3/2025 Agenda #: 4.

TABLE 1
Updated Estimated Budget 1570-72000/CP0758-999
Valley Strong Stadium
Clubhouse and Batting Cage/Pitching Tunnel
Design Cost
4Creeks Topographic Survey Services $11,500
4Creeks Design Services $420,000
Contingency $25,000
Design Subtotal: $456,500
Direct Construction Cost
Task 1 - Batting Cage (this award) $1,867,198.84
Task 2 - Clubhouse (estimated) $2,597,216.18
Possible Future Electrical Cost Increase $250,000
Subtotal $4,714,415.02
Construction Contingency (5%) $235,700.00
Estimated Construction Cost Subtotal $4,950,115.02
Construction Support
Construction Manager $221,150
Estimated Construction Survey Staking $41,100
Estimated Material Testing/Special Inspection $74,100
Construction Support Subtotal $336,350
Estimated Project Cost $5,743,000
Current Budget $4,342,028.00
Potential Deficit -$1,400,972.00
The City of Visalia - First Pitch agreement includes a budget of $7,656,698 for all the following projects: Clubhouse & Batting Cage; Outfield Fence & Padding; Batter’s Eye; and LED Lighting Upgrades. The lighting project has just wrapped up, and the outfield fence, padding, and batter’seye project has been issued for construction bids. Bid results are expected by April 2025. Following is the updated summary of the anticipated total project expenses.

TABLE 2
Valley Strong Ballpark

SUMMARY
Lighting Final Cost
"MiLB Lighting Upgrades LED upgrade 8 poles
+ Accent Lighting 4 poles FINAL COST"
$845,118.82
Lighting Total $845,120.00
Fence Estimate
Outfield Fence + Red Barn + Padding
Construction Cost Estimate:
$775,900.00
Construction Contingency $77,600.00
Subtotal $853,500.00
Support Costs Est. $154,200.00
Outfield Fence Total $1,007,700.0
0 Batter’s Eye Estimate
Batter's Eye Construction Cost Estimate: $474,100.00
Construction Contingency $47,400.00
Subtotal $521,500.00
Support Costs Est. $39,400.00
Batter’s Eye Total $560,900.00
Clubhouse & Batting Cage Estimate
Task 1 - Batting Cage (this award) $1,867,198
Task 2 - Clubhouse (estimated) $2,597,216
Potential Additional Electrical Cost Increase $250,000
Construction Contingency (5%) $235,700
Subtotal $4,950,115.02
Support Costs Est. $792,850
Clubhouse & Batting Cage Total $5,743,000.0
0 Estimated Budget Total $8,156,720.00
COV - FPE Contract Budget $7,656,698.00
Potential Deficit $(500,022.00)
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File #: 25-0002 Agenda Date: 3/3/2025 Agenda #: 4.

TABLE 2
Valley Strong Ballpark

SUMMARY
Lighting Final Cost
"MiLB Lighting Upgrades LED upgrade 8 poles
+ Accent Lighting 4 poles FINAL COST"
$845,118.82
Lighting Total $845,120.00
Fence Estimate
Outfield Fence + Red Barn + Padding
Construction Cost Estimate:
$775,900.00
Construction Contingency $77,600.00
Subtotal $853,500.00
Support Costs Est. $154,200.00
Outfield Fence Total $1,007,700.0
0 Batter’s Eye Estimate
Batter's Eye Construction Cost Estimate: $474,100.00
Construction Contingency $47,400.00
Subtotal $521,500.00
Support Costs Est. $39,400.00
Batter’s Eye Total $560,900.00
Clubhouse & Batting Cage Estimate
Task 1 - Batting Cage (this award) $1,867,198
Task 2 - Clubhouse (estimated) $2,597,216
Potential Additional Electrical Cost Increase $250,000
Construction Contingency (5%) $235,700
Subtotal $4,950,115.02
Support Costs Est. $792,850
Clubhouse & Batting Cage Total $5,743,000.0
0 Estimated Budget Total $8,156,720.00
COV - FPE Contract Budget $7,656,698.00
Potential Deficit $(500,022.00)
The potential deficit shown in Table 2 represents the amount that would be split, 50% - City and 50% - First Pitch Entertainment. And, as previously noted, this overall estimate will be updated again when the prices come in from the outfield wall & batter’seye construction bid process, and then once again after the clubhouse bid process. In addition, 4Creeks will continue to look for cost-saving opportunities as they continue the design.

Prior Council Action:

February 3, 2025: The City Council authorized the City Manager to execute an emergency Progressive Design-Build agreement with 4CGlobal, Inc. dba 4Creeks Build, Inc. for an amount to be determined; and to authorize the City Manager to award the construction management services to Vanir Construction Management, Inc. in the amount of $221,150.

October 7, 2024: The City Council authorized the City Manager to execute a professional services agreement with 4Creeks, Inc., as a sole-source provider, for the design of the expansion and remodel of the clubhouse at the Valley Strong Stadium, in the amount of $420,000; to procure limited construction materials through 4Creeks during the design phase in an amount up to $1,100,000; and to appropriate $4,342,028 from the baseball fund.

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

I move to accept the construction proposal for phase 2, task 1 - batting cage & related site work by the design-builder, 4CGlobal, Inc. dba 4Creeks Build for a lump sum amount of $1,867,198.84.

CEQA Review: Environmental Document No. 2024-18, Notice of Exemption was filed at the Tulare County Assessor/Cleark-Recorder’s Office on May 9, 2024.

Attachments:

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File #: 25-0002 Agenda Date: 3/3/2025 Agenda #: 4.

1. Location Map

2. 4CGlobal, Inc. dba 4Creeks Build Ownership Disclosure

3. Phase 2, Task 1 - Batting Cage & Related Site Work Proposal Visalia City Council Printed on 2/28/2025Page 5 of 5
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MAIN
MURRAY
CENTER
HALL
GOSHEN
PARK

GIDDINGS
CONYER
OAK
GROVE
JACOB

RINALDI
SCHOOL

SWITZER
TURNER
SIERRA

DOLLNER

STEVENSON

ACEQUIA
BURREL
M
ARTIN
RACE
DUDLEY

PRIVATE
LINDEN
DUDLEY
OAK
TURNER
GROVE

STEVENSON
HALL
SCHOOL
OAK

GIDDINGS
CONYER
JACOB
HALL
CONYER

STEVENSON

MILL CREEK

PROJECT LOCATION
229

DISCLOSURE STATEMENTS

The following disclosure & statement apply to the Bidder/Proposer/Contractor/Consultant/Vendor/Supplier or Company:

1. submitting a bid or proposal in response to a solicitation by City of Visalia; or

2. as Awardee of a contract/purchase order which is subject to approval by the Visalia City Council.

OWNERSHIP DISCLOSURE

_________________________________________________________________ Name of Bidder/Proposer/Contractor/Consultant/Vendor/Supplier or Company

_________________________________________________________________ Address

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

CALIFORNIA LEVINE ACT STATEMENT
California Government Code Section 84308, also known as the “Levine Act,” can prohibit members of the Visalia City Council from participating in any action related to a contract if he or she receives any political contributions totaling more than $250 within the previous twelve (12) months, and for twelve (12) months following the date a final decision concerning the contract has been made, from the person or company awarded the contract. The Levine Act also requires disclosure of such contribution(s) by a party to be awarded a specific contract.

YES:_____ NO:_____ If yes, please identify the City Council Member(s) and date(s) of contribution in the space below:

Council Member(s) Name Date of Contribution(s)

______________________________ ________________________

NOTICE: The disclosure duty under state law continues for twelve (12) months after the award. If the above information regarding contributions changes during this time after the award, then the awardee is required to update this disclosure form.
_________________________________________________________________________________ Print or Type Name of Bidder/Proposer/Contractor/Consultant/Supplier/Vendor/Company

__________________________________________ ____________________________________ Signature of Company Authorized Individual Print or Type Name of Authorized Individual 4Creeks
324 S. Santa Fe St., Visalia, CA 93291
CEO: Matthew Ainley CPO: Molly Muirhead Director: David De Groot COO: Joel Alipaz CMO: Eric Riley Director: Rose Morgan CFO: Cody Smith Director: Randy Wasnick No stockholders over 10% Matthew Ainley
4Creeks
230
Project: Rawhide Bating Cage Date: 2/24/2025
Address: 300 N Giddings St., Visalia, CA Project SF: 5800 Owner: City of Visalia Drawings Date: 2/21/2025
1 General Requirements 34.12$ 11% 197,875.18$ 2 Site Construction 38.53$ 12% 223,480.00$ (7 Bids out of 30 ITB's) 3 Concrete 45.56$ 14% 264,232.00$ 4 Bids out of 7 ITB's) 4 Masonry 7.23$ 2% 41,936.00$ (2 Bids out of 4 ITB's) 5 Metals 65.69$ 20% 381,017.00$ (3 Bids out of 3 ITB's) 6 Wood and Plastics 7.91$ 2% 45,900.00$ (2 Bids out of 9 ITB's) 7 Thermal and Moisture Protection 0.92$ 0% 5,340.00$ (3 Bids out of 5 ITB's) 8 Doors and Windows 14.18$ 4% 82,238.00$ (4 Bid out of 16 ITB's) 9 Finishes 4.03$ 1% 23,393.00$ (2 Bids out of 13 ITB's) 10 Specialties 0.30$ 0% 1,764.00$ Supplier 11 Equipment 1.79$ 1% 10,400.00$
12 Furnishings -$ 0% -$
13 Special Construction -$ 0% -$
14 Conveying Systems -$ 0% -$
15 Mechanical 18.15$ 6% 105,247.00$ (4 Bids out of 16 ITB's) 16 Electrical 46.81$ 15% 271,481.00$ (4 Bids out of 14 ITB's) 17 Consultants and Designers 2.50$ 1% 14,500.00$ Subtotals 1,668,803.18$
General Liability Insurance 1.00% 16,688.03$
Builder's Risk Insurance 0.45% 7,509.61$
Performance & Payment Bond 1.20% 20,025.64$
Subtotals 1,713,026.46$
Fee/Overhead 9% 154,172.38$
Contingency 0% -$
Total 1,867,198.84$
Bids/ITB'sDivision Description Cost/SF % of Total Total Cost 231
1 General Requirements
• Exclude Special Inspections
• Exclude Fabric Sun Shade
2 Site Construction
Deduct Alternate: Remove Oak Tree ($1,500)
3 Concrete
4 Masonry
5 Metals
• Metal Building price includes standing seam metal roof. Option to switch to a screw down roof for cost savings 6 Wood and Plastics
7 Thermal and Moisture Protection
8 Doors and Windows
9 Finishes
10 Specialties
11 Equipment
12 Furnishings
13 Special Construction
14 Conveying Systems
15 Mechanical
16 Electrical
Clarifications & Exclusions
232
Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 25-0010 Agenda Date: 3/3/2025 Agenda #: 5.

Agenda Item Wording:

Award of Contract for Security Services - Authorize the City Manager to enter into a contract for security services for Transit, Parks and Facilities, and the Convention Center to Val Security Incorporated, for an initial term of one (1) year with four (4) one-year extensions at the option of the City not to exceed $470,000 in year one with allowances for annual CPI increases in years 2 through

5. Deadline for Action: 3/3/2025
Submitting Department: Administration - Transit Division Contact Name and Phone Number:

Angelina DeRossett, Transit Manager,[email protected] (559)713-4591; Alvin Dias, Parks and Facilities Manager,[email protected] (559)713-4564; John Lollis, Assistant City Manager, [email protected], (559)713-4323
Department Recommendation:

Authorize the City Manager to award a contract for security services to Val Security Incorporated from Vallejo, CA, providing regularly scheduled security services for the Transit Division, the Convention Center Division and the Parks and Facilities Division Downtown parking structures.

Background Discussion:

Staff conducted a competitive Request for Bids (RFB) process (RFB No. 23-24-41 attached) for security services at the Transit Center and Downtown parking structures and Convention Center.

There were eighteen (18) responsive bids received, with Val Security submitting the lowest bid. The structure of the hourly rate is made up of three separate rates with $19.98 being the individual base rate for each of the divisions. The responses are as follows:

Bidder's Name Location Total bid
Amount
Val Security Vallejo, CA $59.94
Sky Power Secure Solutions Gardena, CA $65.65
Access Control Security Chatsworth,
CA
$66.00
Bravo Security Services Sacramento,
CA
$69.00
American Global Security Chatsworth,
CA
$69.47
Unified Protective Services Hawthorne,
CA
$70.87
Brapga Security Systems West Covina,
CA
$71.55
Citiguard West Hills, CA $72.00
iGuard Protective Services- Hollywood,
CA
$72.50
Allite Patrol and Security
Services
Reseda, CA $74.64
Triumph Protection Vacaville, CA $78.00
Galga Security Services Fresno, CA $85.50
Peralta Associates & Defense Whittier, CA $86.00
Allied Universal Protection
Services
Fresno, CA $92.08
St. George Private Security Clovis, CA $100.44
Vigilant Private Security Fresno, CA $105.37
Kappia Security Sacramento,
CA
$135.00
Security Services Northwest Sequin, WA $165.00
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File #: 25-0010 Agenda Date: 3/3/2025 Agenda #: 5.

Bidder's Name Location Total bid
Amount
Val Security Vallejo, CA $59.94
Sky Power Secure Solutions Gardena, CA $65.65
Access Control Security Chatsworth,
CA
$66.00
Bravo Security Services Sacramento,
CA
$69.00
American Global Security Chatsworth,
CA
$69.47
Unified Protective Services Hawthorne,
CA
$70.87
Brapga Security Systems West Covina,
CA
$71.55
Citiguard West Hills, CA $72.00
iGuard Protective Services- Hollywood,
CA
$72.50
Allite Patrol and Security
Services
Reseda, CA $74.64
Triumph Protection Vacaville, CA $78.00
Galga Security Services Fresno, CA $85.50
Peralta Associates & Defense Whittier, CA $86.00
Allied Universal Protection
Services
Fresno, CA $92.08
St. George Private Security Clovis, CA $100.44
Vigilant Private Security Fresno, CA $105.37
Kappia Security Sacramento,
CA
$135.00
Security Services Northwest Sequin, WA $165.00
Transit
The Transit Division has maintained a security services contract for many years, the most recent contract with Falcon Security which was implemented in April 2019 and expired in 2024. The contract continued on a month-to-month basis until the RFB was released to the public. Transit has made some changes from the previous contract, with the most significant change being to the hours that security will be on Transit Center property and the adjacent Administration building.

In recent years, Transit has seen a rise in incidents, theft, and vandalism of the Transit Center and adjacent Administration building, which is also owned by Transit and secured by the security contract.

Given the rise in incidents, the decision has been made to contract security services on Transit property on a 24 hours/7 days per week basis. Another change is the additional requirement of security guards to utilize the Transit Radio Frequency Identification (RFID) security probe system which will require the guards to follow a path with a probe device at least once per hour around the Transit Center and Administration building properties. Guards will use the probe device to tap the RFID tags in various locations on the properties, and that data will be transmitted to a report. This will allow Transit staff to ensure that guards are patrolling both properties at least once per hour.

This cost aligns closely to what Transit is currently paying for both daytime and nighttime security services. The breakdown of the Transit Center guard cost is as follows:

Transit Center
hourly rate
1 guard 24 hours 2nd guard 16 hours Total
Hourly rate $19.98 $479.52 $319.68
Weekdays 261 $125,154.72 $83,436.48 $208,591.20
Weekends 104 $49,870.08 $33,246.72 $83,116.80
Total Annually $291,708.00
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File #: 25-0010 Agenda Date: 3/3/2025 Agenda #: 5.

Transit Center
hourly rate
1 guard 24 hours 2nd guard 16 hours Total
Hourly rate $19.98 $479.52 $319.68
Weekdays 261 $125,154.72 $83,436.48 $208,591.20
Weekends 104 $49,870.08 $33,246.72 $83,116.80
Total Annually $291,708.00
Parks and Facilities - Parking Structures
The Parks and Facilities Division oversees the maintenance and security of the two (2) Downtown parking structures. The previous security services contract for the parking structures was awarded to Val Security by the City Council at its meeting on November 16, 2020. During the past four (4) years of the contract, staff have found areas in the scope of services that needed to be updated to address issues that have been arising within the parking structures, as well as in the breezeway and courtyard of the adjacent Convention Center. Some of these issues are vandalism, drinking of alcoholic beverages, and large parties congregating on the top floor of the 300 E. Acequia Avenue parking structure. There were also issues with City staff’sability to monitor security guards on duty and the frequency of security checks at each level of the parking structures. To address these issues, staff did not renew the fifth year of the current contract and have updated the scope of services to include RFID checkpoints, mandatory reports that must be submitted along with monthly meetings with the project manager, and designated break and meal periods to ensure coverage of the parking structures and adjacent Convention Center.

Staff believes that with the updates to the proposed contract, staff will be better enabled to address the issues that were identified in the previous contract and able to reduce these issues, while holding the security contractor more accountable. The contractor will be required to meet the duties outlined in the updated scope of service or face potential termination.

The cost for security services at both parking structures and the convention center plaza and breezeway for 10 hours per day is $153,154. Each structure cost is $76,577.

Convention Center
Due to the rise in homeless activity around the Convention Center, enhanced security measures are necessary to ensure the safety of guests, staff, and vendors. Increased security presence will help prevent unauthorized access, property damage, and potential disturbances that could impact event operations and guest experience. A proactive approach to security will protect the facility’sreputation, maintain business continuity, and provide a secure environment for attendees. This service will only be utilized when requested and will be charged back to the customer.

Up until this point, these security contracts have been separate, with each Division managing its own contract, but staff determined to consolidate the contracts to encourage a more robust response in bids, which was successful as the Purchasing Division received eighteen (18) responsive bidders, with the lowest bidder being Val Security. Staff performed reference checks and received positive responses from Val Security references.

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File #: 25-0010 Agenda Date: 3/3/2025 Agenda #: 5.

At this time staff is including an estimated $20,000 within the ‘notto exceed’contractual amount for Val Security to give Convention Center staff time to develop a budget and take the cost through the rates and fees process so that the security cost can be passed on to convention center customer through the venue booking/leasing agreements.

Fiscal Impact:

Security services is budgeted in the Transit Operations division and in the Parking Lot/Structure division which is funded by the General Fund. The total not to exceed for these two divisions is $460,000. This is broken out as $295,000 for Transit and $155,000 for parking structures.

In addition, this contract will include an additional $20,000 in the ‘not to exceed’ amount for the Convention Center usage. Staff is currently reviewing the current rates and fees to determine if this can be added to the venue costs and paid for by the Convention Center through booking fees.

Prior Council Action:

1. April 1, 2019: Award of Contract for Security Guard Services for Transit Center Properties/Facilities to Falcon Private Security

2. November 16, 2020: Award of Contract for Security Guard Services for Downtown Parking Structures to Val Security Incorporated
Other:

N/A
Alternatives:

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

I make the motion to authorize the City Manager to award a contract for security services for Transit, Parks and Facilities, and the Convention Center to Val Security Incorporated, for an initial term of one (1) year with four (4) one-year extensions at the option of the City not to exceed $470,000 in year one with allowances for additional annual CPI increases in years 2 through 5.

Environmental Assessment Status:

N/A
CEQA Review:

N/A
Attachments:

RFB No. 23-24-41
RFB No. 23-24-41 - Addendum No. 1
RFB No. 23-24-41 - Addendum No. 2
Exhibit D-1: Scope of Services - Transit Division
Exhibit D-2: Scope of Services - Downtown Parking Structures Exhibit D-3: Transit Center Rules
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RFB NO. 23-24-41
Security Guard Services for Transit, City Parking Structures and Various Special Events Page i

CITY OF VISALIA, CA

REQUEST FOR BIDS
RFB No. 23-24-41

ANNUAL CONTRACT FOR SECURITY GUARD SERVICES

FOR VISALIA TRANSIT, CITY PARKING STRUCTURES

AND VARIOUS SPECIAL EVENTS

BIDS DUE NO LATER THAN 2:00 PM ON THURSDAY, JANUARY 16, 2025

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

Advertisement Dates: 12/10/24
12/15/24
237
RFB NO. 23-24-41
Annual Contract for Security Guard Services for Transit Division, Downtown Parking Structures and Various City Special Events Page ii

TABLE OF CONTENTS

I. DEFINITIONS .......................................................................................................................... 1

II. INTRODUCTION ..................................................................................................................... 1

III. INSTRUCTIONS ..................................................................................................................... 2

IV. SCOPE OF SERVICES/PROJECT ........................................................................................ 2

V. PRE-BID AND BID MEETINGS .............................................................................................. 2

VI. BID OPENING AND CONFIDENTIALITY .............................................................................. 3

VII. AWARD ................................................................................................................................... 3

VIII. PROTESTS/APPEALS ........................................................................................................... 3

IX. SPECIAL CONDITIONS ......................................................................................................... 4

X. GENERAL CONDITIONS ....................................................................................................... 4

XI. POST AWARD RESPONSIBILITIES ..................................................................................... 8

EXHIBITS
A. BID FORM

B. CERTIFICATIONS, AFFIDAVITS, ASSURANCES, STATEMENTS, WAIVERS, AND

QUESTIONNAIRES WHICH MUST ACCOMPANY BID FORM
B-1. Equal Employment Opportunity Compliance Certificate B-2. Non-Collusion Affidavit
B-3. Worker’s Compensation Insurance Certificate
B-4. Disclosures
B-5. Americans with Disabilities Act Compliance Certificate B-6. Drug-Free Workplace Certificate
B-7. Iran Contracting Act

C. SAMPLE PROJECT AGREEMENT WITH ATTACHMENTS
ATTACHMENT 1 - GENERAL CONTRACT PROVISIONS
ATTACHMENT 2 - INSURANCE REQUIREMENTS

D-1. SCOPE OF SERVICES FOR TRANSIT DIVISION
D-2. SCOPE OF SERVICES FOR PARKING STRUCTURES/OTHER CITY LOCATIONS & EVENTS D-3. TRANSIT RULES

238

RFB NO. 23-24-41
Annual Contract for Security Guard Services for Transit and Downtown Parking Structures

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Visalia City CouncilMarch 3, 2025

Visalia City Council
March 3, 2025