Agenda packet — Visalia City Council, May 19, 2025 (part 1 of 2)

Visalia City Council
707 W. Acequia
Visalia, CA 93291
Visalia City Council
Visalia City Council
Meeting Agenda - Final
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, May 19, 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. Downtown Visalia Property and Business Improvement
District Annual Report - Receive the 2025 Annual Operations Report for the organization.
25-0098

2. Town-Center Business Improvement Area Annual Report - Accept and approve the Annual Town-Center Business
Improvement Area Report, renewing the Management Agreement with Downtown Visalians, Inc. for an additional one-year term to begin July 1, 2025.
25-0099

3. Massage Establishment Ordinance Discussion - Consideration of and direction on initiating potential Municipal Code updates to Visalia Municipal Code Chapter 5.68 Massage Establishments. 25-0145

4. Presentation by California Water Service - Presentation by Cal Water regarding the companies plan for complying with the State of California’s indoor and outdoor water regulations.
25-0195
ADJOURN TO CLOSED SESSION - 6:00 PM (Or, immediately following Work Session)

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1 Visalia City Council Meeting Agenda - Final May 19, 2025 CALL TO ORDER REGULAR SESSION - 7:00 PM

PLEDGE OF ALLEGIANCE
INVOCATION LED BY DEACON HENRY MEDINA, ST. MARY'S CATHOLIC PARISH

SPECIAL PRESENTATION / RECOGNITION
2025 Summer Live & Play Cover Photo Contest
National Public Works Week

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. 25-0090

2. Accept and Appropriate Grant Funding - Accept and appropriate $3,103,963 of Encampment Resolution Funding Round 3 Window 3 for operational and rapid rehousing funds for the Visalia Navigation Center on N. Court to provide interim shelter, and a combination of capital and operational funds for the Sequoia Village on S. Mooney to provide permanent supportive housing for people living in targeted encampments.
25-0072

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2 Visalia City Council Meeting Agenda - Final May 19, 2025

3. Aquatics Facility Joint Use Agreement and Acceptance of Visalia Unified Sponsorship for Registration Fees for Swim Team Program - Authorize the City Manager to execute a
one-year facility use agreement with Visalia Unified School District that includes the City’s use of the pools at Mt. Whitney, Golden West, and El Diamante for community aquatics programs and acceptance of VUSD sponsoring registration fees for students in the swim team program.
25-0136

4. Renewal authorization for the Environmental Clean-Up Opportunities Transitional Jobs Program - Authorization for the City Manager to approve a 3-year agreement with the Workforce Investment Board of Tulare County to continue the Environmental Clean-Up Opportunities Transitional Jobs Program through Fiscal Year 2027/2028 in the amount of $765,960.00 from the Solid Waste Enterprise Fund.
25-0144

5. Adopt Resolution and Exchange Federal funds for State Highway Account Funds - Adopt Resolution No. 2025-35
Authorizing the City Manager to sign the Fiscal Year 2024/25 Claim to the Tulare County Association of Governments for Regional Surface Transportation Program Funds in Exchange for State Highway Account Funds and appropriate $930,390 towards the Giddings Street Culvert Replacement Project.
25-0167

6. Authorization to Increase Allocated Funds & Amend Contract - Authorize City staff to initiate Measure N amendment process to increase allocated funds and amend the contract for the Visalia Police Department’s body-worn camera program.
25-0171

7. Approve the Repair, Installation, and Startup of a Membrane Bioreactor Blower - Approve the issuance of a Sole Source Purchase Order to APGN, Inc. in the amount of $39,340 for the repair, installation, and startup of a Membrane Bioreactor Blower at the Water Reclamation Facility and appropriate $39,340 from the Wastewater Fund.
25-0176

8. Purchase of Tuatara UTV Electric Vehicles - Authorize the City Manager to award a sole source purchase order to ZeroNox Inc., Porterville, CA, for an amount not to exceed $138,539 and appropriate an additional $38,539 from the General Fund. 25-0175

9. Approval of Fiscal Year 2024 / 2025 Transportation
Development Act Claim - Approve the Resolution No. 2025-34 for the Transit Division’s Fiscal Year 2024 / 2025 Transportation Development Act Claim in the amount of $11,863,821.86.
25-0178

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3 Visalia City Council Meeting Agenda - Final May 19, 2025

10. Award Fiscal Year 2024 / 2025 Cape Seal Contract- Authorize the City Manager to sign the construction contract for Fiscal Year 2024/ 2025 Cape Seal Project to VSS International, Inc. in the amount of $1,698,325.00.
25-0190

REGULAR ITEMS AND PUBLIC HEARINGS
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. Riggin Avenue Widening Project Traffic and Construction Impacts - Receive a staff presentation outlining the construction phases of work, traffic detours, and resident impacts for the Riggin Avenue Widening Project Kelsey St. to Shirk St..
25-0173

2. Tulare Avenue Road Rehabilitation Project Traffic and Construction Impacts - Receive a staff presentation outlining the construction phases of work, traffic detours, and resident impacts for the Tulare Avenue Major Road Rehabilitation Project from Demaree to Cotta.
25-0174

3. Caldwell Avenue Widening Project Traffic and Construction Impacts: Receive a staff presentation outlining the construction phases of work, traffic detours, closures and resident impacts for the Caldwell Avenue Widening Project from Santa Fe Street to Lovers Lane.
25-0168

CLOSED SESSION REPORT

ADJOURNMENT

UPCOMING CITY COUNCIL MEETINGS

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4 Visalia City Council Meeting Agenda - Final May 19, 2025

1. Upcoming City Council Meetings
Monday, June 2, 2025 @ 7:00 p.m. at 707 W. Acequia
Monday, June 16, 2025 @ 7:00 p.m. at 707 W. Acequia
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.
25-0141

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5 Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 25-0098 Agenda Date: 5/19/2025 Agenda #: 1.

Agenda Item Wording:

Downtown Visalia Property and Business Improvement District Annual Report - Receive the 2025 Annual Operations Report for the organization.

Deadline for Action: 5/31/2025
Submitting Department: Finance and Technology Services
Contact Name and Phone Number:

Melody Murch, Assistant Finance Director (559) 713-4379, [email protected] Ruth Pena, Financial Analyst (559) 713-4327, [email protected] Department Recommendation:

That Council receive the Annual Operations Report for the Downtown Visalia Property and Business Improvement District (DTVPID), providing comment and direction as appropriate.

Background Discussion:

The Downtown Visalia Property and Business Improvement District (DTVPBID) is an assessment district which provides activities and improvements to Downtown property owners. The DTVPBID was created in 1998 and has been extended by ballot of the affected property owners ever since. The DTVPBID is in its 5th iteration, and the current duration is January 1, 2020, through December 31, 2029. In accordance with the DTVPBID Management District Plan (MDP), the City has contracted with the Downtown Visalia Property Owner’s Association (DTVPOA) for the administration of the DTVPBID, and the DTVPOA has subcontracted this administration to Downtown Visalians, Inc.

The DTVPBID is required to submit the annual operations report by May 31st each year in accordance with the Property and Business Improvement District Law of 1994 (PBID Law) and the current agreement between the City and the DTVPOA. The attached report (Attachment A) summarizes past, current, and planned activities, improvements, and the financial state of the DTVPBID. The report must also include any proposed assessment increases. No increase is proposed for the 2026 tax year and this recommendation is discussed in this agenda item. The council’srole, according to PBID Law, is to review the attached report to ensure consistency with the Management District Plan (MDP) and make any changes it deems necessary to ensure compliance with the MDP as balloted by the affected property owners.

The MDP sets the maximum annual increase in assessments. To accommodate increases to the California Minimum Wage which occurred annually through January 2022, the MDP allowed a 10% increase through the 3rd year of the plan (2022). Beginning with year 4 (2023), annual increases have been limited to 5% each year for the remainder of the plan. Although a maximum increase of 5% is allowed by the MDP for the 2026 tax year, no increase is proposed. The current assessment amounts will continue into the 2026 year and are shown in Table 1: Summary of Proposed 2026 Visalia City Council Printed on 5/16/2025Page 1 of 6
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DTVPBID Assessment.

Table 1: Summary of Proposed 2026 DTVPBID Assessment
Description City of Visalia All Others Total Assessments 2025 PBID Assessment 156,245$ 524,503$ 680,749$ No Proposed Increase - - - 2026 PBID Assessment 156,245$ 524,503$ 680,749$ Although none is proposed, any assessment increase approved, or changes directed by Council tonight would be included in the June 2, 2025, agenda item for the Tax Roll process.

Additional Information:

DTVPBID V Formation: Since 1998, the DTVPBID has collected assessments under PBID Law to provide funding for improvements and activities to preserve and enhance the economic condition of Downtown Visalia. The 5th iteration of the DTVPBID was formed on July 15, 2019, by a ballot of the owners of property located within the district and began on January 1, 2020. As prescribed by the current MDP, administration of the DTVPBID is being performed by the Downtown Visalia Property Owners Association (DTVPOA) under a management agreement approved by City Council on December 3, 2019. As required by PBID Law, and included in the agreement with the DTVPOA, the annual operations report is to be prepared and presented to the City Council each year. The deadline of May 31st has been set to allow the inclusion of any assessment increases approved by Council in the annual Tax Roll process.

Reporting Requirement: The annual operations report is required by PBID Law, and the DTVPOA Management Agreement, to include certain information summarized by the following items excerpted from section 2.B. of the agreement. The full PBID Management Agreement is included as Attachment B to this item.

Agreement Section 2.B.

B. Prepare and provide to the City, for review by the City Council, an annual operations report for all matters covered under this Agreement on or prior to May 31, 2020, and thereafter no later than May 31st of each year. Such annual report shall include financial summaries to be provided in the format set forth in Exhibit A, and account for:
i. all actual revenue, activities and expenditures during the fiscal year of the District (January 1 through December 31) prior to the year of the report; ii. all to-date and projected revenue, activities and expenditures during the then current fiscal year; and
iii. a specific management plan, including operating budget, for the fiscal year following the year of the report. The specific management plan and budget for the following fiscal year shall specify the actual maintenance, activities and improvements proposed to be provided for in that year along with their estimated cost; and iv. shall be filed with the clerk and shall refer to the property and business improvement district by name, specify the fiscal year to which the report applies and also include any additional information required under §36650(b) of the PBID Statute, such as:

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1. Any proposed changes to the boundaries, benefit zones, or classification of property within the district.

2. The method and basis of levying assessments, including any proposed increases, in sufficient detail to allow property owners to estimate the amount of their individual assessments.

3. The estimated amount of any surplus or deficit revenues to be carried from previous fiscal years.

The estimated amount of any contributions to be made from sources other than district assessments.

The City Council shall review the report to ensure consistency with the Plan. In accordance with the provisions of PBID Statute, the City Council may approve the report as filed by the DVPOA or may modify any particular contained in the report and approve it as modified.

Report Elements
While the City is required by the MDP to contract with the DTVPOA for management of the DTVPBID, the power to modify any aspect of the annual report, prior to approval, lies with the City Council, with one notable exception. The City Council may not make or approve any changes that would prevent the DTVPBID from funding scheduled payments on any executed contract or debt service obligation.

This is the City Council’s opportunity to review the justification for any changes or assessment increases and hold the DTVPBID accountable for any controllable rising costs. Proposed items are intended to be reviewed by the City Council to ensure consistency with the MDP.

Financial and Budget Information: The report included in Attachment A contains a summary of receipts and disbursements for the 2024 Calendar Year (January 1-December 31) as well as the 2025 Budget which lists planned and projected revenues and disbursements. The expenditures summarized in the report comply with the Service Plan and Budget contained in section VI. of the Management District Plan (MDP).

PBID Fund (375) Balances: The City administers the collection of DTVPBID revenue through the annual tax roll process. Once collected, the funds are held in a Fiduciary Fund, pending quarterly payment requests from the POA. As of December 31, 2024, the balance of the PBID Fiduciary Fund (375) was $617,636. This balance consisted of $179,846 in prior year, unspent funds, and $437,790 in assessments collected through the 2024-25 Tax Roll in preparation for the start of the 2025 DTVPBID year. The balance of DTVPBID assessments remaining to be collected on December 31, 2023, was $236,721, which includes any prior year delinquent assessments. Table 2: PBID V - Fund 375 - Cash Balance below provides a summary of the cash balance in the PBID V fund over the last 5 years.
2020/21 2021/22 2022/23 2023/24 2024/25*
Beginning Cash 157,356 228,126 344,312 424,475 505,084 PBID Assessments Collected 539,003 611,783 629,795 661,284 674,511 Assessments Paid to DTV (460,000) (490,000) (550,000) (615,000) (325,000) Investment Activity & Other (1,775) 119 5,419 28,600 - Property Tax Admin Fees (479) (479) (479) (478) (238) Subtotal 234,106 349,549 429,046 498,881 854,357 Adjusted for Assessments Receivable (5,979) (5,237) (4,571) 6,203 (236,721) Ending Cash Balance 228,126 344,312 424,475 505,084 617,636 - - - - - *2024/25 is a partial year and reflects 12/31/2024 balance as of 4/21/25 Table 2: PBID V - Fund 375 - Cash Balance
For Fiscal Years July 1 to June 30*
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2020/21 2021/22 2022/23 2023/24 2024/25*
Beginning Cash 157,356 228,126 344,312 424,475 505,084 PBID Assessments Collected 539,003 611,783 629,795 661,284 674,511 Assessments Paid to DTV (460,000) (490,000) (550,000) (615,000) (325,000) Investment Activity & Other (1,775) 119 5,419 28,600 - Property Tax Admin Fees (479) (479) (479) (478) (238) Subtotal 234,106 349,549 429,046 498,881 854,357 Adjusted for Assessments Receivable (5,979) (5,237) (4,571) 6,203 (236,721) Ending Cash Balance 228,126 344,312 424,475 505,084 617,636 - - - - - *2024/25 is a partial year and reflects 12/31/2024 balance as of 4/21/25 Table 2: PBID V - Fund 375 - Cash Balance
For Fiscal Years July 1 to June 30*
The cash balance summary in Table 2 is based upon funds collected and paid out by the City and does not include any cash balances paid to the DTVPOA that may remain unspent. The annual report in Attachment A provides a summary of any DTVPBID balances held by the DTVPOA.

Plan Changes and Assessment Increases: The attached report submitted by the DTVPOA (Attachment A) is accompanied by this staff report. The possibility of an increase was discussed by the POA Board on April 22, 2025, and the POA Board has recommended no increase in DTVPBID assessments for the 2026 tax year. The maximum annual inflationary increase allowed by the MDP was set at 10% for years two and three (2021 and 2022) and reduced to 5% for the remaining 7 years (2023 to 2029). This was due to the expectation that costs would continue to increase at a rate higher than 5% until mandated increases to the California Minimum Wage were completed in January 2022.

The maximum assessment increase allowed for the 2026 DTVPBID year is set by the MDP rather than by any Consumer Price Index (CPI) rate. For this reason, it is important to consider the justification for any requested increase in the DTVPBID assessments. To-date, the DTVPBID assessment increases have exceeded the CPI for All Urban Consumers (CPI-U) provided by the Bureau of Labor Statistics. This is due to the increases built into the years 2021 and 2022 which were affected by the mandatory California minimum wage increase, which is not fully reflected in the CPI- U. Although the CPI-U increased 2.4% over the 12 months leading up to March of 2025, the DTPOA Board is recommending no increase in assessment amounts to minimize the lingering effect on downtown businesses already dealing with the increased prices resulting from the high inflation experienced in recent years. Any increase, or lack thereof, has a compounding effect on future DTVPBID years, changing the maximum assessment which can be achieved in the 10-year term of PBID V. Table 3: Maximum Assessment DTVPBID V - Years 2020-2029 below shows the updated maximum assessment amounts based upon a 2% increase in 2026.

PBID Year
Proposed
Annual %
Maximum
Assessment
Increase
Amount
2020 Base Year 500,291 Base Year
2021 10% 550,320 50,029
2022 10% 605,352 55,032
2023 5% 635,620 30,268
2024 5% 667,401 31,781
2025 2% 680,749 13,348
2026 0% 680,749 -
2027 5% 714,786 34,037
2028 5% 750,526 35,739
2029 5% 788,052 37,526
287,761$
Table 3: Maximum Assessment DTVPBID V - Years 2020-2029 Total Maximum Increase over 10 year life
As shown on page 8 of the MDP (Attachment C), the original maximum annual assessment was $851,791 in the 2029 year, which will now be reduced to a final maximum assessment of $788,052 if the recommendation for no increase for 2026 is approved. Any assessment changes approved by Council tonight will be brought back on June 2, 2025, as part of the Tax Roll process.

Fiscal Impact:

As shown above in Table 1: Summary of Proposed 2026 DTVPBID Assessment, no additional cost to the City’scombined assessments is proposed. If approved, the City contribution of $156,245 to the DTVPBID would remain the same for the 2026 tax year. Shown below, in Table 4: City DTVPBID Assessment Detail, is the breakdown of the payment between the General Fund, Convention Center, and Visalia Transit.

Table 4: City DTVPBID Assessment Detail
Description
General
Fund
Convention
Center
Visalia
Transit
Total
Assessments
2025 City PBID Assessment 108,241$ 39,002$ 9,002$ 156,245$ No Proposed Increase - - - -$ 2026 City PBID Assessment 108,241$ 39,002$ 9,002$ 156,245$ Prior Council Action:
• July 15, 2019: DTVPBID V Ballot process and formation • December 3, 2019: Approval of Management Agreement with DTVPOA • Annual Reports received, and Assessment Increases approved on:
o May 18, 2020 (10% increase for 2021)
o May 17, 2021 (10% increase for 2022)
o May 16, 2022 (5% increase for 2023)
o May 15, 2023 (5% increase for 2024)
o June 3, 2024 (2% increase for 2025)
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Other: The annual report for the Town-Center Business Improvement District managed by the Downtown Visalians is also being brought to Council on this same date.

Alternatives: None Recommended.

Recommended Motion (and Alternative Motions if expected):

I move that Council accept the Annual Operations Report for the Downtown Visalia Property and Business Improvement District and approve a zero percent (0.0%) increase in assessments for the 2026 tax year (or as amended by Council).

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

Attachment A: Annual DTVPBID Operations Report
Attachment B: Current DTVPBID Management Agreement dated January 1, 2020 Attachment C: DTVPBID Management District Plan & Engineer’s Report (MDP) Visalia City Council Printed on 5/16/2025Page 6 of 6
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April 22, 2019
Prepared pursuant to the Property and Business Improvement District Law of 1994, Streets and Highways Code section 36600 et seq.

DOWNTOWN VISALIA PROPERTY AND

BUSINESS IMPROVEMENT DISTRICT

MANAGEMENT DISTRICT PLAN & ENGINEER’S REPORT
2020-2029
29 Downtown Visalia PBID Management District Plan i

CONTENTS

I. Overview ................................................................................................................................................. 1 II. Impetus ................................................................................................................................................... 2 III. Background............................................................................................................................................. 3 IV. Accomplishments .................................................................................................................................. 4 V. Boundaries .............................................................................................................................................. 5 VI. Service Plan & Budget .......................................................................................................................... 6 A. Improvements and Activities 6
B. Annual Budget 6
C. Assessment Budget 7
D. Zone Assessment Budgets 8
E. Annual Maximum Assessment Budget 8

VII. Governance ............................................................................................................................................ 9 A. Owners’ Association 9
B. Brown Act & Public Records Act Compliance 9
C. Annual Report 9

VIII. Engineer’s Report ................................................................................................................................ 10 Appendix 1 – Maximum Annual Assessment Rates ......................................................................................... 21 Appendix 2 – PBID Law ....................................................................................................................................... 22 Appendix 3 – Parcel Assessment Calculations .................................................................................................. 34 Appendix 4 – Total Estimated Maximum Cost of Improvements, Maintenance, and Activities ............ 44 Appendix 5 – Services by Zone ............................................................................................................................ 45 Appendix 6 – Map .................................................................................................................................................. 46

Prepared by Civitas
www.civitasadvisors.com
(800)999-7781
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Downtown Visalia PBID Management District Plan Page 1
I. OVERVIEW

Developed by a growing coalition of property owners, the Downtown Visalia Property and Business Improvement District ( DTVPBID) is a benefit assessment district whose main goal is to provide improvements and activities which constitute and convey a special benefit to assessed parcels. This approach has been used successfully in other cities throughout the country to provide special benefits to property owners, namely increased sales, attraction of new tenants, incr eased occupancies, and specifically increased property values. As required by state law, property owners have created this Management District Plan (Plan) to renew the DTVPBID.

Location: The DTVPBID generally includes parcels in the downtown area of the City of Visalia, as shown on the map in Section V.

Purpose: The purpose of the DTVPBID is to provide activities and improvements which constitute and convey a special benefit to assessed parcels. The DTVPBID will provide environmental enhancements, economic enhancements, and related administration programs directly and only to assessed parcels within its boundaries.

Budget: The DTVPBID annual assessment budget for the initial year of its ten (10) year operation is anticipated to be $ 500,291.13. The annual budget may be subject to an increase in assessment rates of no more than ten percent (10%) per year. The assessment funds will be supplemented by non -assessment funds (such as grants an d event income), so that the total budget for the initial year is estimated at $525,179.97.

Cost: The assessment rate (cost to the parcel owner) is based on parcel size and benefit zone.

The initial annual rate to each parcel is shown in the table below. Assessment rates may be subject to an increase of no more than ten percent (10%) per year for the second and third years of the renewed term and no more than five percent (5%) per year for the fourth through tenth years of the renewed term.

Initial Parcel Assessment Rates
Parcel Type Parcel Size (sq. ft.)
Benefit Zone Zone 1 Zone 2
Commercial $0.140 $0.045

Renewal: DTVPBID renewal requires submittal of petitions from property owners representing more than fifty percent (50%) of the total assessment. The “Right to Vote on Taxes Act” (also known as Proposition 218) requires a ballot vote in which more than fifty percent (50%) of the ballots received, weighted by assessment, be in support of the DTVPBID.

Duration: The DTVPBID will have a ten (10) year life beginning January 1, 2020 through December 31, 2029. Near the end of the term , the petition, ballot, and City Council hearing process must be repeated for the DTVPBID to again be renewed.

Management: The Downtown Visalia Property Owner's Association (the Association) will continue to serve as the Owners’ Association for the DTVPBID.
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Downtown Visalia PBID Management District Plan Page 2
II. IMPETUS

There are several reasons why now is the time to renew the DTVPBID. The most compelling reasons are as follows.

1. The Need to be Proactive in Determining the Future of Downtown Visalia.

In order to protect their investment, parcel owners must be partners in the process that determines the level and frequency of services, and how new improvements and development projects are implemented. The DTVPBID will allow these owners to lead and shape future services and improvements through the DTVPBID.

2. The Need to Attract New Business and Investment throughout Downtown Visalia.

If Downtown Visalia is to compete as a successful commercial district it must develop its own well- financed, proactive strategy to retain businesses and tenants as well as attract new busin ess and investment. The DTVPBID provides the financial resources to develop and implement a focused strategy that will work to prevent and fill vacancies and attract new tenants to all areas of the DTVPBID.

3. An Opportunity to Create a Private/Public Partnership with a Unified Voice for Downtown Visalia.

Because parcel owners would be investing financial resources through the DTVPBID, they will be looked upon as a strong partner in negotiations with the City. This partnership will have the ability to leverage the parcel owner’s investment with additional public investment in Downtown Visalia.

4. An Opportunity to Establish Private Sector Management and Accountability.

A non-profit, private organization formed for the sole purpose of improving Downtown Visalia will manage the services provided and the DTVPBID. Annual DTVPBID work plans and budgets are developed by a board composed of stakeholders that own property in the Downtown Visalia.

Improvements and activities provided by the DTVPBID are subject to private sector performance standards, controls, and accountability.

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Downtown Visalia PBID Management District Plan Page 3
III. BACKGROUND

The International Downtown Association estimates that more than 1,500 Property and Business Improvement Districts (PBIDs) currently operate throughout the United States and Canada. PBIDs are a time-tested tool for property owners who wish to come together and obtain collective services which benefit their properties.

PBIDs provide supplemental services in addition to those provided by local government. They may also finance physical and capital improvements. These improvements and activities are conce ntrated within a distinct geographic area and are funded by a special parcel assessment. Services and improvements are only provided to those who pay the assessment.

Although funds are collected by the local government, they are then directed to a priv ate nonprofit.

The nonprofit implements services and provides day-to-day oversight. The nonprofit is managed by a Board of Directors representing those who pay the assessment, to help ensure the services meet the needs of property owners and are responsive to changing conditions within the PBID.

PBIDs all over the globe have been proven to work by providing services that improve the overall viability of commercial districts, resulting in higher property values, lease rates, occupancy rates, and sales volumes.

The DTVPBID will be renewed pursuant to a state law that took effect in January of 1995. The “Property and Business Improvement District Law of 1994,” which was signed into law by Governor Pete Wilson, ushered in a new generation of Property and Business Improvement Districts in California. Key provisions of the law include:

 Allows a wide variety of services which are tailored to meet specific needs of assessed properties in each individual PBID;
 Requires property owner input and support throughout the renewal process;  Requires written support on both a petition and ballot from property owners paying fifty percent (50%) of proposed assessments;
 Allows for a designated, private nonprofit corporation to manage funds and implement programs, with oversight from property owners and the City;  Requires limits for assessment rates to ensure that they do not exceed the amount owners are willing to pay; and
 Requires the PBID be renewed after a certain time period, making it accountable to property owners.

The “Property and Business Improvement Business District Law of 1994” is provided in Appendix 2 of this document.

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Downtown Visalia PBID Management District Plan Page 4
IV. ACCOMPLISHMENTS

During the previous term of the DTVPBID, the Downtown Visalia Property Owner's Association has achieved significant results for the benefit of assessed property owners within the DTVPBID.

Examples include:

 Upgraded and installed decorative lighting on 48 trees along Main Street. Decorative lights are maintained annually and removed and rehun g for tree maintenance every three years.
 LED light upgrade to Candy Cane Lane holiday lighting.  Removal of over 14,000 graffiti tags (1,650 annually).  Provision of 24/7 security services. There have been just under 25,000 call for service (3,000 annually) and 30,000 vagrant contacts.
 Landscaping improvements including a total revamp and enhancement of the Main Street corridor and converting to drip irrigation systems.  Pedestrian safety enhancements along the Main Street corridor.  Parking in-lieu fees designed to attract businesses to the DTVPBID.  Enclosure artwork improvements.
 DTVPBID maintenance programs.

In the next term of the DTVPBID, the Downtown Visalia Property Owner's Association envisions the following:

 Street light replacements in January 2020.
 Water infrastructure replacements along Main Street in January 2020.  Using Public Safety Planning grant funds to improve traffic flows, bicycle safety, and pedestrian safety throughout the DTVPBID.

34 April 22, 2019
Downtown Visalia PBID Management District Plan Page 5
V. BOUNDARIES

The DTVPBID generally includes parcels in the downtown area of the City of Visalia, as shown on the map below. The service area includes approximately 374 properties with 241 property owners. The DTVPBID boundary is illustrated by the map below. A larger map is available on r equest by calling (916)437-4300 or (800)999-7781.

35 April 22, 2019
Downtown Visalia PBID Management District Plan Page 6
VI. SERVICE PLAN & BUDGET

A. Improvements and Activities
The DTVPBID will provide supplemental improvements and activities that are above and beyond those provided by the City and other government agencies. None of the services to be provided by the DTVPBID are provided by the City or other government agencies. The improvements and activities will be provided directly and only to assessed parcels; they will not be provided to parcels that are not assessed. Each and every service is unique to the DTVPBID, thus the benefits provided are particular and distinct to each assessed parcel.

1. Environmental Enhancements
The environmental enhancement programs may include public safety patrols to support crime prevention and reduce the incidence of nuisance crimes, streetscape and landscape enhancements to make the DTVPBID more attractive, graffiti removal to provide a cleaner DTVPBID environment, and general DTVPBID maintenance including sidewalk sweeping and steam cleaning.

2. Economic Enhancements
The economic enhancement programs and incentives are designed to attract, grow, and incubate new businesses. DTVPBID economic enhancements programs will also include an in- lieu parking program to remove barriers to downtown development and promotions to improve the downtown image and invite customers to assessed parcels within the DTVPBID.

3. Administration
The administration portion of the budget will be utilized for administrative costs associated with providing the activities and improvements. Those costs may include rent, telephone charges, legal fees, accounting fees, postage, administrative staff, insurance, and other general office expenses.

4. Contingency/Reserve
The budget includes a contingency line item to account for uncollected assessments, if any. If there are contingency funds collected, they may be held in a reserve fund or utilized for other program, administration or renewal costs at the discretion of the Owners’ Association. Policies relating to contributions to the reserve fund, the target amount of the reserve fund, and expenditure of monies from the reserve fund shall be set by the Board of Directors of the Owners’ Association. The reserve fund may be used for the costs of renewing the DTVPBID.

B. Annual Budget
A projected ten (10) year budget for the DTVPBID is provided below. The overall budget shall remain consistent with this Plan. In the event of a legal challenge, assessment funds may be used to defend the DTVPBID. The annual budget is based on the following assumptions and guidelines:

1. The cost of providing improvements and activities may vary depending upon the market cost for those improvements and activities. Expenditures may require adjustment up or down to continue the intended level of improvements and activities. The Association shall annually have the ability to re-allocate up to fifteen percent (15%) of the budget allocation by line item within the budgeted categories. Any change will be approved by the Association and submitted with the Annual Report.
36 April 22, 2019
Downtown Visalia PBID Management District Plan Page 7

2. Funds not spent in any given year may be rolled over to the next year.

3. The assessment rate may be subject to annual increases that will not exceed ten percent (10%) per year for the second and third years of the renewed term and will not exceed five percent (5%) per year for the fourth through tenth years of the renewed term . Increases will be determined by the Association and will vary each year. The projections below illustrate the maximum annual increase for all budget items.

4. Each budget category includes all costs related to providing that improvement, maintenance, or activity, in accordance with Generally Accepted Accounting Principles (GAAP). For example, the environmental enhancements budget includes the cost of staff time dedicated to overseeing and implementing environmental enhancements programs. Staff time dedicated purely to administrative tasks is allocated to the administration and advocacy portion of the budget. The costs of an individual staff member may be allocated to multiple budget categories, as appropriate in accordance with GAAP. The staffing levels necessary to provide the DTVPBID improvements, maintenance, and activities will be determined by the Association on an as - needed basis.

C. Assessment Budget
The total improvement , maintenance, and activity budget for 2020 that is funded by property assessments is $500,291.13. In addition to the assessment revenue, the programs will be supplemented by non-assessment funds. The total of non -assessment funds, and the determination of special and general benefit, in included in the Engineer’s Report. The total of assessment and non -assessment funds is provided in Appendix 4. Below is an illustration of the estimated total asses sment budget allocations for each budget category for the ten (10) year life of the DTVPBID. The allocation of the assessment funds is governed by Section E below. Non -assessment funds may be shifted between budget categories as needed by the Association.

Environmental
Enhancements,
$375,218.35 , 75%
Economic
Enhancements,
$70,040.76 , 14%
Administration,
$40,023.29 , 8%
Contigency / Reserve,
$15,008.73 , 3%
Initial Year Assessment Budget - $500,291.13
37 April 22, 2019
Downtown Visalia PBID Management District Plan Page 8
D. Zone Assessment Budgets
Funds may only be spent on improvements , maintenance, and activities provided in the zone from which they funds were derived. The budget for 2020, broken down by zone, is below.

Benefit Zone Zone 1 Zone 2
Environmental Enhancements $266,100.24 $109,118.11
Economic Enhancements $49,672.04 $20,368.72
Administration $28,384.03 $11,639.26
Contingency / Reserve $10,644.01 $4,364.72
Zone Totals $354,800.32 $145,490.81

E. Annual Maximum Assessment Budget
The budget below assumes the maximum annual increase of ten percent (10%) per year for the second and third years of the renewed term and of five percent (5%) per year for the fourth through tenth years of the renewed term.is enacted and that there are no changes to the categorical budget allocations.

Year Environmental
Enhancements
Economic
Enhancements Administration Contingency /
Reserve Total
2020 $375,218.35 $70,040.76 $40,023.29 $15,008.73 $500,291.13 2021 $412,740.19 $77,044.84 $44,025.62 $16,509.60 $550,320.25 2022 $454,014.20 $84,749.32 $48,428.18 $18,160.56 $605,352.26 2023 $476,714.91 $88,986.79 $50,849.59 $19,068.59 $635,619.88 2024 $500,550.66 $93,436.12 $53,392.07 $20,022.02 $667,400.87 2025 $525,578.19 $98,107.93 $56,061.67 $21,023.12 $700,770.91 2026 $551,857.10 $103,013.33 $58,864.76 $22,074.28 $735,809.47 2027 $579,449.96 $108,163.99 $61,807.99 $23,177.99 $772,599.93 2028 $608,422.45 $113,572.19 $64,898.39 $24,336.89 $811,229.92 2029 $638,843.58 $119,250.80 $68,143.31 $25,553.74 $851,791.43 Total $5,123,389.59 $956,366.07 $546,494.87 $204,935.52 $6,831,186.05

38 April 22, 2019
Downtown Visalia PBID Management District Plan Page 9
VII. GOVERNANCE

A. Owners’ Association
The District shall be governed by the Downtown Visalia Property Owner's Association, with oversight from the Visalia City Council. The Downtown Visalia Property Owner's Association shall serve as the Owners’ Association described in the Streets and Highways Code §36651. The Board of Directors of the Association and its staff are charged with the day-to-day operations of the DTVPBID.

A majority of the Board of Directors of the Downtown Visalia Property Owner's Association must be parcel owners paying the DTVPBID assessment. The Board of Directors shall be composed as follows:
 Directors must represent diversity in property and business type, including both large and small property owners, as well as different uses within the DTVPBID boundaries including office, retail, hospitality, government, and non-profits;
 Directors will also include business owners who may not be property owners; and  Directors will also include representatives of both benefit zones.

B. Brown Act & Public Records Act Compliance
An Owners’ Association is a private entity and may not be considered a public entity for any purpose, nor may its Board of Directors or staff be considered to be public officials for any purpose. The Owners’ Association is, however, subject to government regulations relating to transparency, namely the Ralph M. Brown Act and the California Public Records Act. These regulations are designed to promote public accountability. The Owners’ Association must act as a legislative body under the Ralph M. Brown Act (Government Code §54950 et seq.). Thus, meetings of the Association Board of Directors and certain committees must be held in compliance with the public notice and other requirements of the Brown Act. The Owners ’ Association is also subject to the record keeping and disclosure requirements of the California Public Records Act.

C. Annual Report
The Association shall present an annual report at the end of each year of operation to the City Council pursuant to Streets and Highways Code §36650 (see Appendix 2). The annual report is a prospective report for the upcoming year and must include:

1. Any proposed changes in the boundaries of the DTVPBID or in any benefit zones or classification of property within the district;

2. The improvements, maintenance, and activities to be provided for that fiscal year;

3. The estimated cost of providing the improvements, maintenance, and activities to be provided for that fiscal year;

4. The method and basis of levying the assessment in sufficient detail to allow each real property owner to estimate the amount of the assessment to be levied against his or her property for that fiscal year;

5. The estimated amount of any surplus or deficit revenues to be carried o ver from a previous fiscal year; and

6. The estimated amount of any contributions to be made from sources other than assessme nts levied pursuant to this Plan.

39 April 22, 2019
Downtown Visalia PBID Management District Plan Page 10
VIII. ENGINEER’S REPORT

The DTVPBID’s parcel assessments will be imposed in accordance with the provisions of Article XIIID of the California Constitution. Article XIIID provides that “only special benefits are assessable,”1 and requires the City to “separate the general benefits from the special benefits conferred on a parcel.” 2 Special benefits are a “particular and distinct benefit over and above general benefits conferred on real property located in the district or to the public -at-large.”3 Conversely, a general benefit is “conferred on real property located in the district or to the public -at- large.”4 Assessment law also mandates that “no assessment shall be imposed on any parcel which exceeds the reasonable cost of the proportional special benefit conferred on that parcel.”5 The Engineer determined the total cost of the improvements, maintenance, and activities, quantified the general benefit accruing to the public -at-large and non -assessed parcels adjacent to and within the DTVPBID, and separated that amount from the special benefit accruing to the assessed parcels.

Then, the Engineer determined the proportional special benefit derived by each parcel and allocated the special benefit value of the improvements, maintenance, and activiti es accordingly. The Engineer’s determinations and detailed calculations are summarized in this report.

A. Separation of General and Special Benefits
Each of the improvements, maintenance, and activities, and the associated costs and assessments within the DTVPBID, were reviewed, identified, and allocated based on special and general benefits pursuant to Article XIIID of the California Constitution. The assessment has been apportioned based on the proportional special benefits conferred to the assessed parce ls located within the DTVPBID boundaries as determined below.

1. General Benefits
Unlike special benefits, which are conferred directly and only upon assessed parcels, a general benefit is conferred on the general public or non -assessed parcels. Existing City and other public services, which are provided to every person and parcel, everywhere within the City, are an example of a general benefit. Although the DTVPBID’s boundaries have been narrowly drawn and programs have been carefully designed to provide sp ecial benefits, and improvements, maintenance, and activities will only be provided directly to assessed parcels, it is acknowledged that there will be general benefits as a result of the DTVPBID’s improvements, maintenance, and activities.

The California Constitution mandates that “only special benefits are assessable, and an agency shall separate the general benefits from the special benefits.” 6 “Generally, this separation and quantification of general and special benefits must be accomplished by appor tioning the cost of a service or improvement between the two and assessing property owners only for the portion of the cost representing special benefits.” 7 The first step that must be undertaken to separate general and special benefits provided by the DTVPBID’s improvements, maintenance, and activities is to identify and quantify the general benefits. There are two bodies who can receive general benefits: the public- at-large within the DTVPBID, and non-assessed parcels surrounding the DTVPBID.

1 Cal. Const., art. XIII D, §4(a)
2 Cal. Const., art. XIII D, §4(a)
3 Id., §2(i)
4 Cal Const., art XIII D, §2(i)
5 Cal. Const., art. XIII D, §4(a)
6 Cal. Const., art XIII D, §4(a)
7 Golden Hill Neighborhood Association v. City of San Diego (2011) 199 Cal.App.4th 416 40 April 22, 2019
Downtown Visalia PBID Management District Plan Page 11
General Benefit to the Public-at-Large
Although the improvements, maintenance, and activities are narrowly designed and carefully implemented to specially benefit the assessed parcels, and only provided directly to assessed parcels, they will generate a general benefit to the public-at-large within the DTVPBID. State law indicates that “Activities undertaken for the purpose of conferring special benefits upon property to be assessed inherently produce incidental or collateral effects that benefit property or perso ns not assessed.” 8 However, “the mere fact that special benefits produce incidental or collateral effects that benefit property or persons not assessed does not convert any portion of those special benefits or their incidental or collateral effects into general benefits.”9 Further, “the value of any incidental, secondary, or collateral effects that arise from the improvements, maintenance , or activities of a property -based district and that benefit property or persons not assessed shall not be deducted from the entirety of the cost of any special benefit or affect the proportionate special benefit derived by each identified parcel.”10 Thus, although there may be some incidental benefit to persons engaged in business on the assessed parcels, that incidental benefit is not considered general benefit because it is inherently produced by improvements, maintenance, and activities that provide special benefits to the assessed parcels. There is, however, a general benefit to persons not engaged in business on the assessed parcels.

Intercept surveys conducted in similar districts have found that approximately 97.3% of pedestrian traffic within PBID boundaries is engaged in business on assessed parcels, while the remaining approximately 2.7% is simply passing through and not engaging in business on the assessed parcels11.

The 2.7% of traffic passing through does not have any connection to the assessed parcels, and therefore does not represent a special benefit to the assessed parcels. The 2.7% will, however, receive a derivative and indirect general benefit as a result of the improvements, maintenance, and activities being provided in the District. Therefore, it is estimated that 2.7% of the benefit created by the District’s services is general benefit provided to the public -at-large. To ensure that the assessment dollars do not fund general benefits to the public -at-large, that portion of the cost of improvements, maintenance, and activities will be paid for with funds not obtained through assessments. Using the 2.7% figure, based on the initial year improvement, maintenance, and activity budget, the value of this general benefit to the public-at-large is $14,179.86 ($525,179.97*0.027).

General Benefit to Non-Assessed Parcels
Although they are only provided directly to the assessed parcels, the DTVPBID’s improvements, maintenance, and activities may also confer general benefits upon non -assessed parcels surrounding the DTVPBID. One study examining property values in PBID areas found “no evidence of spill - over impacts (either good or bad) on commercial properties located just outside the BID’s boundaries;”12 however, the California Court of Appeals has stated that “services specifically intended for assessed parcels concomitantly confer collateral general benefits to surrounding properties.”13 It is reasonable to conclude that improvements, maintenance, and activities within the DTVPBID will have an incidental impact on non -assessed parcels surrounding the DTVPBID boundaries. Alt hough the legislature has indicated that “the value of any incidental , secondary, or collateral effects that arise from the improvements, maintenance, or activities of a property -based

8 Streets and Highways Code section 36601(h)(2)
9 Ibid
10 Streets and Highways Code section 36622(k)(2)
11 Surveys conducted in: North Park, San Diego (January 2015); Mack Road, Sacramento (July 2014); and Sunrise MarketPlace, Citrus Heights (December 2013)
12 Furman Center for Real Estate & Urban Policy; The Impact of Business Improvement Districts on Property Values: Evidence from New York City (2007) p. 4
13 Beutz v. Riverside (2010) 184 Cal.App.4th 1516
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Downtown Visalia PBID Management District Plan Page 12
district and that benefit property or persons not assessed shall not be deducted from the entirety of the cost of any special benefit,” 14 the California Court of Appeals has noted that “the characterization of a benefit may depend on whether the parcel receives a direct advantage from the improvement…or receives an indirect, d erivative advantage resulting from the overall public benefits of the improvement.” 15 Those derivative and indirect impacts are considered general benefits and will be quantified and separated.

In this Engineer’s opinion, because improvements, maintenance, and activities are provided only within the DTVPBID and on its perimeter, parcels separated from the DTVPBID by either at least one intervening parcel or an impassable physical barrier such as a wall, railroad track, freeway, or ditch will not receive sp ill over benefits. Parcels separated from the DTVPBID will not benefit because they are physically removed from the actual location of improvements, maintenance, and activities provided, and do not face serviced parcels. Therefore, this analysis consider s non-assessed surrounding parcels that are immediately adjacent to and accessible from the DTVPBID’s boundaries.

The total DTVPBID improvement, maintenance, and activity budget for the first year is $ 525,179.97.

After reducing the improvement, maintenance, and activity budget by the general benefit to the public-at-large ($14,179.86), the remaining benefit to parcels is $ 511,000.11. This benefit has been distributed to both assessed and non-assessed parcels using the following methodology. The general benefit to the public -at-large has been proportionally allocated to the DTVPBID’s improvement, maintenance, and activity categories as shown in the following table.

Category Benefit to Parcels Benefit to
Public-at-Large Total
Environmental Enhancements $383,695.86 $10,647.27 $394,343.13 Economic Enhancements $71,094.24 $1,972.81 $73,067.05
Administration; Contingency/Reserve $56,210.01 $1,559.78 $57,769.79 TOTAL $511,000.11 $14,179.86 $525,179.97

To determine the general benefit to parcels, the Engineer assigned each parcel group a benefit factor, determined the appropriate parcel characteristic to use in the calculation, multiplied the benefit factor by the benefit characteristic to determine the benefit units attributable to each parcel group, and apportioned the remaining service cost (service cost minus general benefit to the public) in accordance with the benefit units derived by each parcel group.

Benefit Factors
All parcels within and adj acent to the DTVPBID have been assigned a benefit factor to mathematically represent the proportional special and general benefit and quantify the value of each.

The determination of benefit factors for each type of improvement, maintenance, and activity follows.

Improvements
The improvements to be provided by the DTVPBID provide two types of special benefits:

14 Streets and Highways Code section 36622(k)(2)
15 Tiburon v. Bonander (2009) 180 Cal.App.4th 1057, 1077 42 April 22, 2019
Downtown Visalia PBID Management District Plan Page 13
Improvement – The primary special benefit provided by the DTVPBID’s improvements is the improvements themselves, which are available to tenants and customers of assessed parcels.

Proximity – The DTVPBID’s improvements also provide the special benefit of being in proximity to a parcel that is benefitting from an improv ement, as parcels will enjoy the spillover benefits of neighboring parcels utilizing the improvements.

The majority of the benefit is the improvements themselves; proximity is a lesser benefit. It is this Engineer’s estimation that eighty -five percent ( 85%) of the special benefit from the DTVPBID’s improvements is the improvement, while the presence and proximity special benefits each account for fifteen percent (15%) of the special benefit. Assessed parcels will receive both benefits; non - assessed parcels within and adjacent to the DTVPBID will not be directly improved, and therefore only receive the general benefit of proximity.

Tangible Activities
The tangible activities (those that are physically provided via a person or people working throughout the DTVPBID) to be provided by the DTVPBID generate three types of special benefits:

Service – The primary special benefit provided by the DTVPBID’s physical activities is the actual service.

Presence – The DTVPBID’s physical activities also provide the special benefit of an individual’s presence on the assessed parcel as the activities are provided, which can have a deterrent effect and creates a positive impression that the area is well -maintained and safe.

The “Disneyland effect” is the benefit the parcels receive from the observation that parcels are being maintained. There are studies which link the perception of cleanliness to a perception of increased security.

Proximity – The DTVPBID’s physical activities also provide the special benefit of being in proximity to a cleaner, safer parcel. Neighboring parcels enjoy the spillover benefits of being adjacent to increased safety and cleanliness.

The majority of the benefit received by the parcels is the result s of the DTVPBID’s services; onsite presence and proximity are lesser benefits. It is this Engineer’s estimation that seventy -five percent (75%) of the special benefit from the DTVPBID’s physical activities is the service, while the presence and proximity benefits each account for twelve and one -half percent (12.5% presence,

12.5% proximity) of the special benefit. Assessed parcels will receive all three benefits; non -assessed parcels within and adjacent to the DTVPBID will not be directly serviced by individuals present on the parcels and therefore only receive the general benefit of proximity.

Intangible Activities
Some of the DTVPBID’s activities, such as marketing, are distinct in that they are not provided to a targeted area within the DTVPBID, rather they are provided via Internet, radio, and other forms of media and targeted at an audience outside the DTVPBID in an effort to bring the audience into the DTVPBID. These activities provide two types of special benefits:

Direct Exposure – The primary special benefit provided by the DTVPBID’s intangible activities is exposure. The intangible activities increase awareness of the DTVPBID as a commercial and business destination and lead to increased patronage.

Incidental Exposure – The DTVPBID’s intangible activities will also have a secondary special benefit of incidental exposure, such as word -of-mouth exposure, that results from the direct 43 April 22, 2019
Downtown Visalia PBID Management District Plan Page 14
exposure and increases awareness of the DTVPBID as a commercial and business destination.

The majority of the benefit from these activities is the direct exposure; the incidental exposure is a lesser benefit. It is this Engineer’s estimation that ninety percent (90%) of the special benefit from the intangible activities is direct exposure, while ten perc ent (10%) is incidental exposure. Assessed parcels will receive both as special benefits; non -assessed parcels within and adjacent to the DTVPBID will not be directly marketed and therefore only receive the general benefit of incidental exposure.

Factors Determined
Based on the foregoing analysis, all assessed parcels within the DTVPBID specially benefit from the DTVPBID’s improvements, maintenance, and activities, and have been assigned a benefit factor of

1.0. Parcels that are not assessed have been assigned benefit factors based on the portion of the benefit they will receive, as described above. The non -assessed parcels will benefit from 15% of the improvements, 12.5% of the tangible activities , and 10% of the intangible activities ; therefore they have been assigned benefit factors of 0.150, 0.125, and 0.100, respectively.

Non-Assessed Benefit Characteristics
There are two types of parcels that are not assessed; those within the DTVPBID and those immediately adjacent to and accessible from the DTVPBID. Because they generally benefit in a differing manner, distinct parcel characteristics are used to quantify the general benefit to each type.  Inside – Non-assessed parcels inside of the DTVPBID are surrounded by parcels that are assessed and receiving the full special benefits; they will, therefore, receive the general benefit of proximity. These parcels are impacted on more than one side by the DTVPB ID’s improvements, maintenance, and activities and improvements, maintenance, and activities are provided all around them. Because these parcels are surrounded by specially benefitted parcels, it is appropriate that parcel square footage be used to measur e the general benefit they receive.
 Adjacent – Adjacent parcels are those that are immediately adjacent to or directly across the street from specially benefitted parcels, and accessible from specially benefitted parcels.

These parcels generally benefit differently than those inside the DTVPBID, because these parcels are adjacent to, rather than surrounded by, specially benefitted parcels. Square footage is not an appropriate measure of benefit to these parcels. Because the parcels are not surrounded by serviced parcels, a long, shallow parcel with the same square footage as a deep, narrow parcel will receive a different level of general benefit. Likewise, two parcels with the same depth but a different width adjacent to serviced parcels will benefit differently.

To account for this difference, it is appropriate that parcel linear frontage be used to measure the general benefit the adjacent parcels receive.

Calculations
To quantify and separate the general benefit to non -assessed parcels, the following calculations were undertaken for each budget category.

1. The total service budget for each category was determined and the amount of general benefit to the public-at-large was subtracted from the category budget.

2. The benefit factor applicable to each improvement, maintenance, or activity was multiplied by the linear frontage of assessed and non -assessed parcels, to determine the number of benefit units received by each parcel group. 44 April 22, 2019
Downtown Visalia PBID Management District Plan Page 15

3. The benefit units for all parcel groups were summed, and the percent age of benefit units attributable to each parcel group was calculated.

4. The total remaining improvement, maintenance, and activity budget, less the amount already determined to be general benefit to the public -at-large, was allocated to general and special benefit categories for each parcel group using the calculated benefit percent and applicable benefit characteristic methodology.

5. The special and general benefit r esulting from the administration and contingency / reserve portions of the budget were deter mined based on the proportional allocation of benefits derived from improvements, maintenance, and activities.

Environmental Enhancements
The environmental enhancements budget, minus the amount of general benefit to the public -at- large, is $ 383,695.86. The calculations below determine the amount of general benefit to non - assessed parcels within the DTVPBID. The environmental enhancements budget category contains both improvements and tangible activities; out of an abundance of caution, the Engineer u sed the higher 0.150 benefit factor to quantify the general benefit.

Parcel Type
Square
Footage
Benefit
Factor Benefit Units
Benefit
Percent
Remaining
Budget
Assessed 5,767,417 X 1.000 =5,767,417.00 99.428% X $383,695.86 = $381,502.67 Non-Assessed 221,039 X 0.150 =33,155.85 0.572% X $383,695.86 = $2,193.19

The environmental enhancements budget, minus the amount of general benefit to the public and non-assessed parcels within the DTVPBID, is $ 381,502.67. The calculations below determine the amount of general benefit to parcels adjacent to the DTVPBID.

Parcel Type
Linear
Frontage
Benefit
Factor Benefit Units
Benefit
Percent
Remaining
Budget
Inside 95,991 X 1.000 =95,991.00 98.353% X $381,502.67 = $375,218.35 Adjacent 10,718 X 0.150 =1,607.70 1.647% X $381,502.67 = $6,284.32

Therefore, the allocation of the environmental enhancements budget is as follows:

General Benefit – Public At Large $10,647.27
General Benefit – Inside Parcels $2,193.19
General Benefit – Adjacent Parcels $6,284.32
Special Benefit $375,218.35
Total $394,343.13

Economic Enhancements
The economic enhancements budget, minus the amount of general benefit to the public -at-large, is $71,094.24. The calculations below determine the amount of general benefit to non -assessed parcels within the DTVPBID. The economic enhancements budget category contains intangible activities; the Engineer used the 0.100 benefit factor to quantify the general benefit. 45 April 22, 2019
Downtown Visalia PBID Management District Plan Page 16
Parcel Type
Square
Footage
Benefit
Factor Benefit Units
Benefit
Percent
Remaining
Budget
Assessed 5,767,417 X 1.000 =5,767,417.00 99.618% X $71,094.24 = $70,822.81 Non-Assessed 221,039 X 0.100 =22,103.90 0.382% X $71,094.24 = $271.43

The economic enhancements budget, minus the amount of general benefit to the public and non - assessed parcels within the DTVPBID, is $70,822.81. The calculations below determine the amount of general benefit to parcels adjacent to the DTVPBID.

Parcel Type
Linear
Frontage
Benefit
Factor Benefit Units
Benefit
Percent
Remaining
Budget
Inside 95,991 X 1.000 =95,991.00 98.896% X $70,822.81 = $70,040.76 Adjacent 10,718 X 0.100 =1,071.80 1.104% X $70,822.81 = $782.05

Therefore, the allocation of the economic enhancements budget is as follows:

General Benefit – Public At Large $1,972.81
General Benefit – Inside Parcels $271.43
General Benefit – Adjacent Parcels $782.05
Special Benefit $70,040.76
Total $73,067.05

Administration; Contingency / Reserve
The administration and contingency / reserve budget line items relate to the improvements, maintenance, and activities provided. These costs have been allocated proportionally based on the special and general benefit provided by each category.

Special Benefit to
Parcels
General Benefit
to Parcels
Environmental Enhancements $375,218.35 $8,477.51
Economic Enhancements $70,040.76 $1,053.48
Improvement, Maintenance, and Activity Totals $445,259.11 $9,530.99 Percent 97.904% 2.096%
Administration; Contingency / Reserve $55,032.02 $1,177.99 Total Parcel Benefits $500,291.13 $10,708.98

iv. Total Benefits
Based on the foregoing calculations, the total benefits to assessed parcels, non -assessed parcels, and the general public are:

Special Parcel General Public Total
Environmental Enhancements $375,218.35 $8,477.51 $10,647.27 $394,343.13 46 April 22, 2019
Downtown Visalia PBID Management District Plan Page 17
Economic Enhancements $70,040.76 $1,053.48 $1,972.81 $73,067.05 Administration;
Contingency / Reserve $55,032.02 $1,177.99 $1,559.78 $57,769.79 Total $500,291.13 $10,708.98 $14,179.86 $525,179.97
c. Non-Assessment Funding
The programs funded by the DTVPBID receive additional non -assessment funding in the form of city funding, grants, corporate sponsorships, event income, and other miscellaneous funds. These funding sources are anticipated to equal or exceed the amount of general benefit conferred an nually by the DTVPBID’s improvements, maintenance, and activities, $ 24,888.84. These non -assessment funds will be used to pay for the general benefit provided by the DTVPBID’s improvements, maintenance, and activities, ensuring that parcel assessments wil l only be used to provide special benefits.

2. Special Benefit
The improvements, maintenance, and activities to be provided by the DTVPBID constitute and convey special benefits directly to the assessed parcels. Assessment law requires that “the proportionate special benefit derived by each identified parcel shall be determined in relationship to the entirety of the capital cost of a public improvement, the maintenance and operation expenses of a public improvement, or the cost of the property related service being provided.” 16 Further, “no assessment shall be imposed on any parcel which exceeds the reasonable cost of the proportional special benefit conferred on that parcel.” 17 Special benefit “includes incidental or collateral effects that arise from the improvements, maintenance, or activities of property-based districts even if those incidental or collateral effects benefit property or persons not assessed.”18 To determine the total special benefit value to be conveyed to the assessed parcels, we deduct the general benefit value ($ 24,888.84) from the total value of the improvements, maintenance, and activities ($525,719.97). The remaining $500,291.13 is considered the special benefit to assessed parcels (the “Total Assessment”). The Total Assessment represents the total value of the special benefit to be provided by the improvements, maintenance, and activities. The Total Assessment has been proportionally divided among the assessed parcels so that no assessment exceeds the reasonable cost of the proportional special benefit conferred on a parcel. The assessment rate has been designed to ensure that “properties that receive the same propo rtionate special benefit pay the same assessment.”19

Service Provided
Total Benefit
Value
General
Benefit
Value to
Public
Benefit Value
to Parcels
(Special &
General)
Special Benefit
to Assessed
Parcels
Environmental Enhancements $394,343.13 $10,647.27 $383,695.86 $375,218.35 Economic Enhancements $73,067.05 $1,972.81 $71,094.24 $70,040.76 Administration $42,014.40 $1,134.39 $40,880.01 $40,023.29

16 Cal. Const., art XIII D §4(a)
17 Ibid
18 Streets and Highways Code section 36615.5
19 Tiburon v. Bonander (2009) 180 Cal.App.4th 1057
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Contingency / Reserve $15,755.39 $425.39 $15,330.00 $15,008.73 TOTAL $525,179.97 $14,179.86 $511,000.11 $500,291.13

B. Assessment Methodology

1. Base Formula
Each parcel will be assessed based on proportional special benefits received. The variables used for the annual assessment formula are parcel size and benefit zone . These variables are appropriate measures of the proportional special benefit because the need for services, level of services, and quantity of services are all relative to these variables; thus the special benefit provided to each parcel by the services can be proportionally measured using these variables.

Determination of Assessment Rates
“Because not all parcels in the district are identical in size…some will receive more special benefit than others.” 20 Each of the variables used relates directly to the servi ce level and special benefit provided to each parcel. Parcel square footage is the size of the parcel, measured in square feet.

Size is an appropriate measure of proportional special benefit because it relates directly to the quantity of services provided to the parcel, the highest and best use of a parcel, and reflects the long- term value implications of the DTVPBID. The larger a parcel, the more services and benefit the parcel will receive.

To determine the assessment rates, the assessed parcels wer e classified by the estimated benefit assessed parcels receive, the estimated special benefit value of the improvements, maintenance, and activities provided to each type was determined based on approximate cost of service provision, and an assessment rate that is proportional to the estimated proportional benefit received by assessed parcels was determined.

To determine the assessment rates, the estimated special benefit value for assessed parcels was divided by the total assessable parcel square footage as shown in the tables below.

Parcel Size
The DTVPBID’s services will benefit each assessed parcel as a whole. The service budget which, in this Engineer’s estimation, represents special benefits to the parcels, has been allocated based on parcel size.

Parcel Type Initial Parcel
Size Budget
Parcel Square
Footage
Initial Parcel
Assessment
Rate
($/sqft/yr)
Zone 1 Commercial $354,800.32 ÷ 2,534,288 = $0.1400
Zone 2 Commercial $145,490.81 ÷ 3,233,129 = $0.0450

Summary of Assessment Rates
Therefore, for the initial year, the maximum annual assessment rates to parcels are as shown below and in Appendix 1. Maximum annual assessment rates may be subject to an increase of no more than ten percent (10%) per year for the second and third years of the renewed term and no more than five percent (5%) per year for the fourth through tenth years of the renewed term, as shown in Appendix 1.

20 Dahms v. Downtown Pomona (2009) 174 Cal.App.4th 708
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Initial Parcel Assessment Rates
Parcel Type Parcel Size
(sq. ft.)
Zone 1 Commercial $0.1400
Zone 2 Commercial $0.0450

Sample assessment calculations are shown in Appendix 3.

2. Commercial Parcels
Commercial parcels will receive and benefit from all DTVPBID services, and will therefore be assessed the full rate.

3. Publicly-Owned Parcels
Under “The Right to Vote on Taxes Act” (also known as Proposition 218) all public parcels are required to pay assessments unless they can demonstrate by clear and convincing evidence that their parcels do not receive a special benefit. Publicly owned parcels will receive and specially benefit from all of the District’s services and will therefore be assessed the full rate.

4. Non-Assessed Parcels
There are twenty-six (26) parcels within the DTVPBID that will not be assessed. These parcels are not commercial or publicly -owned parcels and will not specially benefit from or directly receive the DTVPBID’s improvements, maintenance, and activities. These parcels are accounted for in the analysis of general benefit provided to non -assessed parcels within the DTVPBID. These parcels h ave the following uses:

 Residential Parcels: There are twenty-four (24) residential parcels within the DTVPBID boundary that will not be assessed. The state legislature has determined that “properties zoned solely for residential use...are conclusively presumed not to benefit from the improvements and services funded through these assessments, and shall not be subject to any assessment.”.21 The services and improvements to be provided are designed t o specially benefit commercial and publicly-owned parcels by attracting and increasing customers and visitors to assessed parcels and by improving the maintenance and safety of the assessed parcels. None of these benefits apply to residential parcels, which will not be serviced or benefit from the DTVPBID’s improvements, maintenance, and activities. Residential parcels are those parcels with four family units or less and planned unit development of single family residences.  Utility Parcel: There is one (1) parcelized railroad track within the DTVPBID boundary that will not be assessed. The vast majority of railroad tracks are not parcelized; this parcel is an oddity. Because the vast majority of railroad tracks are not parcelized and cannot be assessed, and will not receive or benefit from DTVPBID programs, this railroad track parcel is also not assessed.
 Miscellaneous Parcel: There is one (1) parcel that is a pedestrian thoroughfare and does not have a commercial component. The vast majority of pedestrian thoroughfares are not parcelized; this parcel is an oddity. Because the vast majority of pedestrian thoroughfares are not parcelized and cannot be assessed, and will not receive or benefit from DTVPBID programs, this pedestrian thoroughfare parcel is also not assessed.

21 Streets and Highways Code section 36632(c)
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5. Changes in Data
It is the intent of this Plan and Engineer’s Report that each parcel included in the DTVPBID can be clearly identified. Every effort has been made to ensure that all parcels included in the DTVPBID are consistent in the boundary map and the assessment calculation table. However, if inconsistencies arise, the order of precedence shall be: 1) the assessment calculation table and 2) the boundary map.

If the parcel size or type of a parcel changes during the term of this DTVPBID, the assessment calculation may be modified accordingly.

C. Assessment Notice
During the hearing process, an Assessment Ballot will be sent to owners of each parcel in the DTVPBID. The Assessment Ballot provides an estimated assessment. The final individual assessment for any particular parcel may change, up or down, if the parcel square footage or parcel type differ from those used to calculate the amount shown on the notice, which can be found in Appendix 3.

D. Time and Manner for Collecting Assessments
As provided by State Law, the DTVPBID assessment will appear as a separate line item on annual property tax bills prepared by the County of Tulare. Property tax bills are generally distributed in the fall, and payment is expected by lump sum or installment. The County of Tulare shall distribute funds collected to the Association. Existing laws for enforcement and appeal of property taxes, including penalties and interest, apply to the DTVPBID assessments.

E. Engineer’s Certification
I hereby certify, to the best of my knowledge and experience, that each of the identified assessed parcels located within the Downtown Visalia Property and Business Improvement District will receive a special benefit over and above the general benefits con ferred and that the amount of the assessment is no greater than the proportional special benefits conferred on each parcel, as described in this Engineer’s Report.

Review of this Downtown Visalia Property and Business Improvement District Management District Plan and preparation of the Engineer’s Report was completed by:

__________________________
Ross Peabody
State of California

__________
Date

This Engineer’s Report is intended to be distributed as part of the Management District Plan in its entirety, including the Assessment Calculation Table (Appendix 3) and the Boundary Map. Reproduction and distribution of only Section VIII of this Management District Plan violates the intent of this stamp and signature.

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APPENDIX 1 – MAXIMUM ANNUAL ASSESSMENT RATES

The table below illustrates the maximum annual assessment rate with the assumption that the rates will be increased annually by ten percent (10%) per year for the second and third years of the renewed term and by five percent (5%) per year for the fourth through tenth years of the renewed term with approval of the Association Board of Directors. The maximum rates listed are a required disclosure and not the anticipate course of action.

Maximum Parcel Assessment Rates
Year Benefit Zone Commercial
2020 Zone 1 $0.140
Zone 2 $0.045
2021 Zone 1 $0.154
Zone 2 $0.050
2022 Zone 1 $0.169
Zone 2 $0.054
2023 Zone 1 $0.178
Zone 2 $0.057
2024 Zone 1 $0.187
Zone 2 $0.060
2025 Zone 1 $0.196
Zone 2 $0.063
2026 Zone 1 $0.206
Zone 2 $0.066
2027 Zone 1 $0.216
Zone 2 $0.069
2028 Zone 1 $0.227
Zone 2 $0.073
2029 Zone 1 $0.238
Zone 2 $0.077

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APPENDIX 2 – PBID LAW

*** THIS DOCUMENT IS CURRENT THROUGH THE 2019 SUPPLEMENT *** (ALL 2018 LEGISLATION)

STREETS AND HIGHWAYS CODE
DIVISION 18. PARKING
PART 7. PROPERTY AND BUSINESS IMPROVEMENT DISTRICT LAW OF 1994

CHAPTER 1. General Provisions

ARTICLE 1. Declarations

36600. Citation of part

This part shall be known and may be cited as the “Property and Business Improvement District Law of 1994.”

36601. Legislative findings and declarations; Legislative guidance

The Legislature finds and declares all of the following:
(a) Businesses located and operating within business districts in some of this state’s communities are economically disadvantaged, are underutilized, and are unable to attract customers due to inadequate facilities, services, and activities in the business districts. (b) It is in the public interest to promote the economic revitalization and physical maintenance of business districts in order to create jobs, attract new businesses, and prevent the erosion of the business districts. (c) It is of particular local benefit to allow business districts to fund business related improvements, maintenance, and activities through the levy of assessments upon the businesses or real property that receive benefits from those improvements.
(d) Assessments levied for the purpose of conferring special benefit upon the real property or a specific benefit upon the businesses in a business district are not taxes for the general benefit of a city, even if property, businesses, or persons not assessed receive incidental or collateral effects that benefit them. (e) Property and business improvement districts formed throughout this state have conferred special benefits upon properties and businesses within their districts and have made those properties and businesses more useful by providing the following benefits:
(1) Crime reduction. A study by the Rand Corporation has confirmed a 12-percent reduction in the incidence of robbery and an 8-percent reduction in the total incidence of violent crimes within the 30 districts studied.
(2) Job creation.
(3) Business attraction.
(4) Business retention.
(5) Economic growth.
(6) New investments.
(f) With the dissolution of redevelopment agencies throughout the state, property and business improvement districts have become even more important tools with which communities can combat blight, promote economic opportunities, and create a clean and safe environment. (g) Since the enactment of this act, the people of California have adopted Proposition 218, which added Article XIII D to the Constitution in order to place certain requirements and restrictions on the formation of, and activities, expenditures, and assessments by property-based districts. Article XIII D of the Constitution provides that property-based districts may only levy assessments for special benefits. (h) The act amending this section is intended to provide the Legislature’s guidance with regard to this act, its interaction with the provisions of Article XIII D of the Constitution, and the determination of special benefits in property-based districts.
(1) The lack of legislative guidance has resulted in uncertainty and inconsistent application of this act, which discourages the use of assessments to fund needed improvements, maintenance, and activities in property-based districts, contributing to blight and other underutilization of property. 52 April 22, 2019
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(2) Activities undertaken for the purpose of conferring special benefits upon property to be assessed inherently produce incidental or collateral effects that benefit property or persons not assessed. Therefore, for special benefits to exist as a separate and distinct category from general benefits, the incidental or collateral effects of those special benefits are inherently part of those special benefits. The mere fact that special benefits produce incidental or collateral effects that benefit property or persons not assessed does not convert any portion of those special benefits or their incidental or collateral effects into general benefits. (3) It is of the utmost importance that property-based districts created under this act have clarity regarding restrictions on assessments they may levy and the proper determination of special benefits. Legislative clarity with regard to this act will provide districts with clear instructions and courts with legislative intent regarding restrictions on property-based assessments, and the manner in which special benefits should be determined.

36602. Purpose of part

The purpose of this part is to supplement previously enacted provisions of law that authorize cities to levy assessments within property and business improvement districts, to ensure that those assessments conform to all constitutional requirements and are determined and assessed in accordance with the guidance set forth in this act.

This part does not affect or limit any other provisions of law authorizing or providing for the furnishing of improvements or activities or the raising of revenue for these purposes.

36603. Preemption of authority or charter city to adopt ordinances levying assessments

Nothing in this part is intended to preempt the authority of a charter city to adopt ordinances providing for a different method of levying assessments for similar or additional purposes from those set forth in this part. A property and business improvement district created pursuant to this part is expressly exempt from the provisions of the Special Assessment Investigation, Limitation and Majority Protest Act of 1931 (Division 4 (commencing with Section 2800)).

36603.5. Part prevails over conflicting provisions

Any provision of this part that conflicts with any other provision of law shall prevail over the other provision of law, as to districts created under this part.

36604. Severability

This part is intended to be construed liberally and, if any provision is held invalid, the remaining provisions shall remain in full force and effect. Assessments levied under this part are not special taxes.

ARTICLE 2. Definitions

36606. “Activities”

“Activities” means, but is not limited to, all of the following that benefit businesses or real property in the district:
(a) Promotion of public events.
(b) Furnishing of music in any public place.
(c) Promotion of tourism within the district.
(d) Marketing and economic development, including retail retention and recruitment. (e) Providing security, sanitation, graffiti removal, street and sidewalk cleaning, and other municipal services supplemental to those normally provided by the municipality. (f) Other services provided for the purpose of conferring special benefit upon assessed real property or specific benefits upon assessed businesses located in the district.

36606.5. “Assessment”

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“Assessment” means a levy for the purpose of acquiring, constructing, installing, or maintaining improvements and providing activities that will provide certain benefits to properties or businesses located within a property and business improvement district.

36607. “Business”

“Business” means all types of businesses and includes financial institutions and professions.

36608. “City”

“City” means a city, county, city and county, or an agency or entity created pursuant to Article 1 (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of the Government Code, the public member agencies of which includes only cities, counties, or a city and county, or the State of California.

36609. “City council”

“City council” means the city council of a city or the board of supervisors of a county, or the agency, commission, or board created pursuant to a joint powers agreement and which is a city within the meaning of this part.

36609.4. “Clerk”

“Clerk” means the clerk of the legislative body.

36609.5. “General benefit”

“General benefit” means, for purposes of a property-based district, any benefit that is not a “special benefit” as defined in Section 36615.5.

36610. “Improvement”

“Improvement” means the acquisition, construction, installation, or maintenance of any tangible property with an estimated useful life of five years or more including, but not limited to, the following:
(a) Parking facilities.
(b) Benches, booths, kiosks, display cases, pedestrian shelters and signs. (c) Trash receptacles and public restrooms.
(d) Lighting and heating facilities.
(e) Decorations.
(f) Parks.
(g) Fountains.
(h) Planting areas.
(i) Closing, opening, widening, or narrowing of existing streets. (j) Facilities or equipment, or both, to enhance security of persons and property within the district. (k) Ramps, sidewalks, plazas, and pedestrian malls.
(l) Rehabilitation or removal of existing structures.

36611. “Management district plan”; “Plan”

“Management district plan” or “plan” means a proposal as defined in Section 36622.

36612. “Owners’ association”

“Owners’ association” means a private nonprofit entity that is under contract with a city to administer or implement improvements, maintenance, and activities specified in the management district plan. An owners’ association may be an existing nonprofit entity or a newly formed nonprofit entity. An owners’ association is a private entity and may not be considered a public entity for any purpose, nor may its board members or staff be considered to be public officials for 54 April 22, 2019
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any purpose. Notwithstanding this section, an owners’ association shall comply with the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5 of the Government Code), at all times when matters within the subject matter of the district are heard, discussed, or deliberated, and with the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code), for all records relating to activities of the district.
36614. “Property”

“Property” means real property situated within a district.

36614.5. “Property and business improvement district”; “District”

“Property and business improvement district,” or “district,” means a property and business improvement district established pursuant to this part.

36614.6. “Property-based assessment”

“Property-based assessment” means any assessment made pursuant to this part upon real property.

36614.7. “Property-based district”

“Property-based district” means any district in which a city levies a property-based assessment.

36615. “Property owner”; “Business owner”; “Owner”

“Property owner” means any person shown as the owner of land on the last equalized assessment roll or otherwise known to be the owner of land by the city council. “Business owner” means any person recognized by the city as the owner of the business. “Owner” means either a business owner or a property owner. The city council has no obligation to obtain other information as to the ownership of land or businesses, and its determination of ownership shall be final and conclusive for the purposes of this part. Wherever this part requires the signature of the property owner, the signature of the authorized agent of the property owner shall be sufficient. Wherever this part requires the signature of the business owner, the signature of the authorized agent of the business owner shall be sufficient.

36615.5. “Special benefit”

“Special benefit” means, for purposes of a property-based district, a particular and distinct benefit over and above general benefits conferred on real property located in a district or to the public at large. Special benefit includes incidental or collateral effects that arise from the improvements, maintenance, or activities of property-based districts even if those incidental or collateral effects benefit property or persons not assessed. Special benefit excludes general enhancement of property value.

36616. “Tenant”

“Tenant” means an occupant pursuant to a lease of commercial space or a dwelling unit, other than an owner.

ARTICLE 3. Prior Law

36617. Alternate method of financing certain improvements and activities; Effect on other provisions

This part provides an alternative method of financing certain improvements and activities. The provisions of this part shall not affect or limit any other provisions of law authorizing or providing for the furnishing of improvements or activities or the raising of revenue for these purposes. Every improvement area established pursuant to the Parking and Business Improvement Area Law of 1989 (Part 6 (commencing with Section 36500) of this division) is valid and effective and is unaffected by this part.

CHAPTER 2. Establishment
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36620. Establishment of property and business improvement district

A property and business improvement district may be established as provided in this chapter.

36620.5. Requirement of consent of city council

A county may not form a district within the territorial jurisdiction of a city without the consent of the city council of that city. A city may not form a district within the unincorporated territory of a county without the consent of the board of supervisors of that county. A city may not form a district within the territorial jurisdiction of another city without the consent of the city council of the other city.

36621. Initiation of proceedings; Petition of property or business owners in proposed district

(a) Upon the submission of a written petition, signed by the property or business owners in the proposed district who will pay more than 50 percent of the assessments proposed to be levied, the city council may initiate proceedings to form a district by the adoption of a resolution expressing its intention to form a district. The amount of assessment attributable to property or a business owned by the same property or business owner that is in excess of 40 percent of the amount of all assessments proposed to be levied, shall not be included in determining whether the petition is signed by property or business owners who will pay more than 50 percent of the total amount of assessments proposed to be levied. (b) The petition of property or business owners required under subdivision (a) shall include a summary of the management district plan. That summary shall include all of the following:
(1) A map showing the boundaries of the district.
(2) Information specifying where the complete management district plan can be obtained. (3) Information specifying that the complete management district plan shall be furnished upon request. (c) The resolution of intention described in subdivision (a) shall contain all of the following:
(1) A brief description of the proposed improvements, maintenance, and activities, the amount of the proposed assessment, a statement as to whether the assessment will be levied on property or businesses within the district, a statement as to whether bonds will be issued, and a description of the exterior boundaries of the proposed district, which may be made by reference to any plan or map that is on file with the clerk. The descriptions and statements do not need to be detailed and shall be sufficient if they enable an owner to generally identify the nature and extent of the improvements, maintenance, and activities, and the location and extent of the proposed district. (2) A time and place for a public hearing on the establishment of the property and business improvement district and the levy of assessments, which shall be consistent with the requirements of Section 36623.

36622. Contents of management district plan

The management district plan shall include, but is not limited to, all of the following:
(a) If the assessment will be levied on property, a map of the district in sufficient detail to locate each parcel of property and, if businesses are to be assessed, each business within the district. If the assessment will be levied on businesses, a map that identifies the district boundaries in sufficient detail to allow a business owner to reasonably determine whether a business is located within the district boundaries. If the assessment will be levied on property and businesses, a map of the district in sufficient detail to locate each parcel of property and to allow a business owner to reasonably determine whether a business is located within the district boundaries. (b) The name of the proposed district.
(c) A description of the boundaries of the district, including the boundaries of benefit zones, proposed for establishment or extension in a manner sufficient to identify the affected property and businesses included, which may be made by reference to any plan or map that is on file with the clerk. The boundaries of a proposed property assessment district shall not overlap with the boundaries of another existing property assessment district created pursuant to this part. This part does not prohibit the boundaries of a district created pursuant to this part to overlap with other assessment districts established pursuant to other provisions of law, including, but not limited to, the Parking and Business Improvement Area Law of 1989 (Part 6 (commencing with Section 56 April 22, 2019
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36500)). This part does not prohibit the boundaries of a business assessment district created pursuant to this part to overlap with another business assessment district created pursuant to this part. This part does not prohibit the boundaries of a business assessment district created pursuant to this part to overlap with a property assessment district created pursuant to this part.
(d) The improvements, maintenance, and activities proposed for each year of operation of the district and the maximum cost thereof. If the improvements, maintenance, and activities proposed for each year of operation are the same, a description of the first year’s proposed improvements, maintenance, and activities and a statement that the same improvements, maintenance, and activities are proposed for subsequent years shall satisfy the requirements of this subdivision.
(e) The total annual amount proposed to be expended for improvements, maintenance, or activities, and debt service in each year of operation of the district. If the assessment is levied on businesses, this amount may be estimated based upon the assessment rate. If the total annual amount proposed to be expended in each year of operation of the district is not significantly different, the amount proposed to be expended in the initial year and a statement that a similar amount applies to subsequent years shall satisfy the requirements of this subdivision. (f) The proposed source or sources of financing, including the proposed method and basis of levying the assessment in sufficient detail to allow each property or business owner to calculate the amount of the assessment to be levied against his or her property or business. The plan also shall state whether bonds will be issued to finance improvements.
(g) The time and manner of collecting the assessments.
(h) The specific number of years in which assessments will be levied. In a new district, the maximum number of years shall be five. Upon renewal, a district shall have a term not to exceed 10 years. Notwithstanding these limitations, a district created pursuant to this part to finance capital improvements with bonds may levy assessments until the maximum maturity of the bonds. The management district plan may set forth specific increases in assessments for each year of operation of the district. (i) The proposed time for implementation and completion of the management district plan. (j) Any proposed rules and regulations to be applicable to the district. (k) (1) A list of the properties or businesses to be assessed, including the assessor’s parcel numbers for properties to be assessed, and a statement of the method or methods by which the expenses of a district will be imposed upon benefited real property or businesses, in proportion to the benefit received by the property or business, to defray the cost thereof. (2) In a property-based district, the proportionate special benefit derived by each identified parcel shall be determined exclusively in relationship to the entirety of the capital cost of a public improvement, the maintenance and operation expenses of a public improvement, or the cost of the activities. An assessment shall not be imposed on any parcel that exceeds the reasonable cost of the proportional special benefit conferred on that parcel. Only special benefits are assessable, and a property-based district shall separate the general benefits, if any, from the special benefits conferred on a parcel.

Parcels within a property-based district that are owned or used by any city, public agency, the State of California, or the United States shall not be exempt from assessment unless the governmental entity can demonstrate by clear and convincing evidence that those publicly owned parcels in fact receive no special benefit. The value of any incidental, secondary, or collateral effects that arise from the improvements, maintenance, or activities of a property-based district and that benefit property or persons not assessed shall not be deducted from the entirety of the cost of any special benefit or affect the proportionate special benefit derived by each identified parcel. (l) In a property-based district, the total amount of all special benefits to be conferred upon the properties located within the property-based district.
(m) In a property-based district, the total amount of general benefits, if any. (n) In a property-based district, a detailed engineer’s report prepared by a registered professional engineer certified by the State of California supporting all assessments contemplated by the management district plan. (o) Any other item or matter required to be incorporated therein by the city council.

36623. Procedure to levy assessment

(a) If a city council proposes to levy a new or increased property assessment, the notice and protest and hearing procedure shall comply with Section 53753 of the Government Code. (b) If a city council proposes to levy a new or increased business assessment, the notice and protest and hearing procedure shall comply with Section 54954.6 of the Government Code, except that notice shall be mailed to the 57 April 22, 2019
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owners of the businesses proposed to be assessed. A protest may be made orally or in writing by any interested person. Every written protest shall be filed with the clerk at or before the time fixed for the public hearing. The city council may waive any irregularity in the form or content of any written protest. A written protest may be withdrawn in writing at any time before the conclusion of the public hearing. Each written protest shall contain a description of the business in which the person subscribing the protest is interested sufficient to identify the business and, if a person subscribing is not shown on the official records of the city as the owner of the business, the protest shall contain or be accompanied by written evidence that the person subscribing is the owner of the business or the authorized representative. A written protest that does not comply with this section shall not be counted in determining a majority protest. If written protests are received from the owners or authorized representatives of businesses in the proposed district that will pay 50 percent or more of the assessments proposed to be levied and protests are not withdrawn so as to reduce the protests to less than 50 percent, no further proceedings to levy the proposed assessment against such businesses, as contained in the resolution of intention, shall be taken for a period of one year from the date of the finding of a majority protest by the city council.
(c) If a city council proposes to conduct a single proceeding to levy both a new or increased property assessment and a new or increased business assessment, the notice and protest and hearing procedure for the property assessment shall comply with subdivision (a), and the notice and protest and hearing procedure for the business assessment shall comply with subdivision (b). If a majority protest is received from either the property or business owners, that respective portion of the assessment shall not be levied. The remaining portion of the assessment may be levied unless the improvement or other special benefit was proposed to be funded by assessing both property and business owners.

36624. Changes to proposed assessments

At the conclusion of the public hearing to establish the district, the city council may adopt, revise, change, reduce, or modify the proposed assessment or the type or types of improvements, maintenance, and activities to be funded with the revenues from the assessments. Proposed assessments may only be revised by reducing any or all of them. At the public hearing, the city council may only make changes in, to, or from the boundaries of the proposed property and business improvement district that will exclude territory that will not benefit from the proposed improvements, maintenance, and activities. Any modifications, revisions, reductions, or changes to the proposed assessment district shall be reflected in the notice and map recorded pursuant to Section 36627.

36625. Resolution of formation

(a) If the city council, following the public hearing, decides to establish a proposed property and business improvement district, the city council shall adopt a resolution of formation that shall include, but is not limited to, all of the following:
(1) A brief description of the proposed improvements, maintenance, and activities, the amount of the proposed assessment, a statement as to whether the assessment will be levied on property, businesses, or both within the district, a statement on whether bonds will be issued, and a description of the exterior boundaries of the proposed district, which may be made by reference to any plan or map that is on file with the clerk. The descriptions and statements need not be detailed and shall be sufficient if they enable an owner to generally identify the nature and extent of the improvements, maintenance, and activities and the location and extent of the proposed district. (2) The number, date of adoption, and title of the resolution of intention. (3) The time and place where the public hearing was held concerning the establishment of the district. (4) A determination regarding any protests received. The city shall not establish the district or levy assessments if a majority protest was received.
(5) A statement that the properties, businesses, or properties and businesses in the district established by the resolution shall be subject to any amendments to this part. (6) A statement that the improvements, maintenance, and activities to be conferred on businesses and properties in the district will be funded by the levy of the assessments. The revenue from the levy of assessments within a district shall not be used to provide improvements, maintenance, or activities outside the district or for any purpose other than the purposes specified in the resolution of intention, as modified by the city council at the hearing concerning establishment of the district.

Notwithstanding the foregoing, improvements and activities that must be provided outside the district 58 April 22, 2019
Downtown Visalia PBID Management District Plan Page 29
boundaries to create a special or specific benefit to the assessed parcels or businesses may be provided, but shall be limited to marketing or signage pointing to the district. (7) A finding that the property or businesses within the area of the property and business improvement district will be benefited by the improvements, maintenance, and activities funded by the proposed assessments, and, for a property-based district, that property within the district will receive a special benefit.
(8) In a property-based district, the total amount of all special benefits to be conferred on the properties within the property-based district.
(b) The adoption of the resolution of formation and, if required, recordation of the notice and map pursuant to Section 36627 shall constitute the levy of an assessment in each of the fiscal years referred to in the management district plan.

36627. Notice and assessment diagram

Following adoption of the resolution establishing district assessments on properties pursuant to Section 36625 or Section 36626, the clerk shall record a notice and an assessment diagram pursuant to Section 3114. No other provision of Division 4.5 (commencing with Section 3100) applies to an assessment district created pursuant to this part.

36628. Establishment of separate benefit zones within district; Categories of businesses

The city council may establish one or more separate benefit zones within the district based upon the degree of benefit derived from the improvements or activities to be provided within the benefit zone and may impose a different assessment within each benefit zone. If the assessment is to be levied on businesses, the city council may also define categories of businesses based upon the degree of benefit that each will derive from the improvements or activities to be provided within the district and may impose a different assessment or rate of assessment on each category of business, or on each category of business within each zone.

36628.5. Assessments on businesses or property owners

The city council may levy assessments on businesses or on property owners, or a combination of the two, pursuant to this part. The city council shall structure the assessments in whatever manner it determines corresponds with the distribution of benefits from the proposed improvements, maintenance, and activities, provided that any property-based assessment conforms with the requirements set forth in paragraph (2) of subdivision (k) of Section 36622.

36629. Provisions and procedures applicable to benefit zones and business categories

All provisions of this part applicable to the establishment, modification, or disestablishment of a property and business improvement district apply to the establishment, modification, or disestablishment of benefit zones or categories of business. The city council shall, to establish, modify, or disestablish a benefit zone or category of business, follow the procedure to establish, modify, or disestablish a property and business improvement district.

36630. Expiration of district; Creation of new district

If a property and business improvement district expires due to the time limit set pursuant to subdivision (h) of Section 36622, a new management district plan may be created and the district may be renewed pursuant to this part.

CHAPTER 3. Assessments

36631. Time and manner of collection of assessments; Delinquent payments

The collection of the assessments levied pursuant to this part shall be made at the time and in the manner set forth by the city council in the resolution levying the assessment. Assessments levied on real property may be collected at the same time and in the same manner as for the ad valorem property tax, and may provide for the same lien priority and penalties for delinquent payment. All delinquent payments for assessments levied pursuant to this part may be charged interest and penalties.

59 April 22, 2019
Downtown Visalia PBID Management District Plan Page 30

36632. Assessments to be based on estimated benefit; Classification of real property and businesses; Exclusion of residential and agricultural property

(a) The assessments levied on real property pursuant to this part shall be levied on the basis of the estimated benefit to the real property within the property and business improvement district. The city council may classify properties for purposes of determining the benefit to property of the improvements and activities provided pursuant to this part.
(b) Assessments levied on businesses pursuant to this part shall be levied on the basis of the estimated benefit to the businesses within the property and business improvement district. The city council may classify businesses for purposes of determining the benefit to the businesses of the improvements and activities provided pursuant to this part.
(c) Properties zoned solely for residential use, or that are zoned for agricultural use, are conclusively presumed not to benefit from the improvements and service funded through these assessments, and shall not be subject to any assessment pursuant to this part.

36633. Time for contesting validity of assessment

The validity of an assessment levied under this part shall not be contested in any action or proceeding unless the action or proceeding is commenced within 30 days after the resolution levying the assessment is adopted pursuant to Section 36626. Any appeal from a final judgment in an action or proceeding shall be perfected within 30 days after the entry of judgment.

36634. Service contracts authorized to establish levels of city services

The city council may execute baseline service contracts that would establish levels of city services that would continue after a property and business improvement district has been formed.

36635. Request to modify management district plan

The owners’ association may, at any time, request that the city council modify the management district plan. Any modification of the management district plan shall be made pursuant to this chapter.

36636. Reflection of modification in notices recorded and maps

(a) Upon the written request of the owners’ association, the city council may modify the management district plan after conducting one public hearing on the proposed modifications. The city council may modify the improvements and activities to be funded with the revenue derived from the levy of the assessments by adopting a resolution determining to make the modifications after holding a public hearing on the proposed modifications. If the modification includes the levy of a new or increased assessment, the city council shall comply with Section 36623. Notice of all other public hearings pursuant to this section shall comply with both of the following:
(1) The resolution of intention shall be published in a newspaper of general circulation in the city once at least seven days before the public hearing.
(2) A complete copy of the resolution of intention shall be mailed by first class mail, at least 10 days before the public hearing, to each business owner or property owner affected by the proposed modification.
(b) The city council shall adopt a resolution of intention which states the proposed modification prior to the public hearing required by this section. The public hearing shall be held not more than 90 days after the adoption of the resolution of intention.

36637. Reflection of modification in notices recorded and maps

Any subsequent modification of the resolution shall be reflected in subsequent notices and maps recorded pursuant to Division 4.5 (commencing with Section 3100), in a manner consistent with the provisions of Section 36627. 60 April 22, 2019
Downtown Visalia PBID Management District Plan Page 31

CHAPTER 3.5. Financing

36640. Bonds authorized; Procedure; Restriction on reduction or termination of assessments

(a)The city council may, by resolution, determine and declare that bonds shall be issued to finance the estimated cost of some or all of the proposed improvements described in the resolution of formation adopted pursuant to Section 36625, if the resolution of formation adopted pursuant to that section provides for the issuance of bonds, under the Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500)) or in conjunction with Marks-Roos Local Bond Pooling Act of 1985 (Article 4 (commencing with Section 6584) of Chapter 5 of Division 7 of Title 1 of the Government Code). Either act, as the case may be, shall govern the proceedings relating to the issuance of bonds, although proceedings under the Bond Act of 1915 may be modified by the city council as necessary to accommodate assessments levied upon business pursuant to this part.
(b) The resolution adopted pursuant to subdivision (a) shall generally describe the proposed improvements specified in the resolution of formation adopted pursuant to Section 36625, set forth the estimated cost of those improvements, specify the number of annual installments and the fiscal years during which they are to be collected. The amount of debt service to retire the bonds shall not exceed the amount of revenue estimated to be raised from assessments over 30 years.
(c) Notwithstanding any other provision of this part, assessments levied to pay the principal and interest on any bond issued pursuant to this section shall not be reduced or terminated if doing so would interfere with the timely retirement of the debt.

CHAPTER 4. Governance

36650. Report by owners’ association; Approval or modification by city council

(a) The owners’ association shall cause to be prepared a report for each fiscal year, except the first year, for which assessments are to be levied and collected to pay the costs of the improvements, maintenance, and activities described in the report. The owners’ association’s first report shall be due after the first year of operation of the district. The report may propose changes, including, but not limited to, the boundaries of the property and business improvement district or any benefit zones within the district, the basis and method of levying the assessments, and any changes in the classification of property, including any categories of business, if a classification is used.
(b) The report shall be filed with the clerk and shall refer to the property and business improvement district by name, specify the fiscal year to which the report applies, and, with respect to that fiscal year, shall contain all of the following information:
(1) Any proposed changes in the boundaries of the property and business improvement district or in any benefit zones or classification of property or businesses within the district. (2) The improvements, maintenance, and activities to be provided for that fiscal year. (3) An estimate of the cost of providing the improvements, maintenance, and activities for that fiscal year.
(4) The method and basis of levying the assessment in sufficient detail to allow each real property or business owner, as appropriate, to estimate the amount of the assessment to be levied against his or her property or business for that fiscal year.
(5) The estimated amount of any surplus or deficit revenues to be carried over from a previous fiscal year.
(6) The estimated amount of any contributions to be made from sources other than assessments levied pursuant to this part.
(c) The city council may approve the report as filed by the owners’ association or may modify any particular contained in the report and approve it as modified. Any modification shall be made pursuant to Sections 36635 and 36636.

The city council shall not approve a change in the basis and method of levying assessments that would impair an authorized or executed contract to be paid from the revenues derived from the levy of assessments, including any commitment to pay principal and interest on any bonds issued on behalf of the district. 61 April 22, 2019
Downtown Visalia PBID Management District Plan Page 32

36651. Designation of owners’ association to provide improvements, maintenance, and activities

The management district plan may, but is not required to, state that an owners’ association will provide the improvements, maintenance, and activities described in the management district plan. If the management district plan designates an owners’ association, the city shall contract with the designated nonprofit corporation to provide services.

CHAPTER 5. Renewal

36660. Renewal of district; Transfer or refund of remaining revenues; District term limit

(a) Any district previously established whose term has expired, or will expire, may be renewed by following the procedures for establishment as provided in this chapter. (b) Upon renewal, any remaining revenues derived from the levy of assessments, or any revenues derived from the sale of assets acquired with the revenues, shall be transferred to the renewed district. If the renewed district includes additional parcels or businesses not included in the prior district, the remaining revenues shall be spent to benefit only the parcels or businesses in the prior district. If the renewed district does not include parcels or businesses included in the prior district, the remaining revenues attributable to these parcels shall be refunded to the owners of these parcels or businesses.
(c) Upon renewal, a district shall have a term not to exceed 10 years, or, if the district is authorized to issue bonds, until the maximum maturity of those bonds. There is no requirement that the boundaries, assessments, improvements, or activities of a renewed district be the same as the original or prior district.

CHAPTER 6. Disestablishment

36670. Circumstances permitting disestablishment of district; Procedure

(a) Any district established or extended pursuant to the provisions of this part, where there is no indebtedness, outstanding and unpaid, incurred to accomplish any of the purposes of the district, may be disestablished by resolution by the city council in either of the following circumstances:
(1) If the city council finds there has been misappropriation of funds, malfeasance, or a violation of law in connection with the management of the district, it shall notice a hearing on disestablishment. (2) During the operation of the district, there shall be a 30-day period each year in which assessees may request disestablishment of the district. The first such period shall begin one year after the date of establishment of the district and shall continue for 30 days. The next such 30-day period shall begin two years after the date of the establishment of the district. Each successive year of operation of the district shall have such a 30-day period. Upon the written petition of the owners or authorized representatives of real property or the owners or authorized representatives of businesses in the district who pay 50 percent or more of the assessments levied, the city council shall pass a resolution of intention to disestablish the district. The city council shall notice a hearing on disestablishment. (b) The city council shall adopt a resolution of intention to disestablish the district prior to the public hearing required by this section. The resolution shall state the reason for the disestablishment, shall state the time and place of the public hearing, and shall contain a proposal to dispose of any assets acquired with the revenues of the assessments levied within the property and business improvement district. The notice of the hearing on disestablishment required by this section shall be given by mail to the property owner of each parcel or to the owner of each business subject to assessment in the district, as appropriate. The city shall conduct the public hearing not less than 30 days after mailing the notice to the property or business owners. The public hearing shall be held not more than 60 days after the adoption of the resolution of intention.

36671. Refund of remaining revenues upon disestablishment or expiration without renewal of district; Calculation of refund; Use of outstanding revenue collected after disestablishment of district

(a) Upon the disestablishment or expiration without renewal of a district, any remaining revenues, after all outstanding debts are paid, derived from the levy of assessments, or derived from the sale of assets acquired with the revenues, or from bond reserve or construction funds, shall be refunded to the owners of the property 62 April 22, 2019
Downtown Visalia PBID Management District Plan Page 33
or businesses then located and operating within the district in which assessments were levied by applying the same method and basis that was used to calculate the assessments levied in the fiscal year in which the district is disestablished or expires. All outstanding assessment revenue collected after disestablishment shall be spent on improvements and activities specified in the management district plan. (b) If the disestablishment occurs before an assessment is levied for the fiscal year, the method and basis that was used to calculate the assessments levied in the immediate prior fiscal year shall be used to calculate the amount of any refund.

63 April 22, 2019
Downtown Visalia PBID Management District Plan Page 34
APPENDIX 3 – PARCEL ASSESSMENT CALCULATIONS

MAP

KEY APN OWNER NAME LOT SIZE ASSESSMENT ZONE
1 093-175-007 VAN RYN JONATHAN A & NIKKI M (TRS) 17161 $772.25 2 2 093-175-009 MINYARD DAVID & LYNN A 6098 $274.41 2
3 093-175-010 LOMELLI MARIA C 11267 $0.00 2
4 093-176-003 ALI KARIM K 16428 $739.26 2
5 093-176-005 VINTAGE PRESS INC 7125 $320.63 2
6 093-181-001 FABRIE JERRY & EVELYN 7314 $329.13 2
7 093-181-006 KITCHEN WILLIAM R & JUDIETH K 8712 $0.00 2 8 093-181-007 PRICE & PRICE OPTOMETRISTS 6079 $273.56 2 9 093-181-008 RODARTE ELPIDIO 6161 $277.25 2
10 093-181-009 KWONG CARINA KAR MAY 5137 $231.17 2
11 093-181-012 TAYS ROBERT C (TR) 15688 $705.96 2
12 093-181-014 RICO CHARLES L JR & VIRGINIA A(TRS) 17548 $789.66 2 13 093-181-015 PETERS JOHN & SUZETTE 5877 $264.47 2
14 093-181-016 FARLEY MICHAEL & DIANE 25609 $1,152.41 2 15 093-181-017 CANERDAY CHAD 13700 $616.50 2
16 093-181-018 PETERS JOHN & SUZETTE 13385 $602.33 2
17 093-181-019 KITCHEN ERIC ALLEN 15924 $716.58 2
18 093-181-020 UNION PACIFIC RAILROAD CO 15611 $0.00 2 19 093-183-002 CARY KAREN ANN(TR)(CREDIT SHELTER T 7695 $346.28 2 20 093-183-003 CARY KAREN ANN (TR)(CREDIT SHELTER 10125 $455.63 2 21 093-183-006 BARRON RITA S & RICHARD B 8844 $397.98 2 22 093-183-010 J & P WALNUTS LP 8844 $397.98 2
23 093-183-011 VINTAGE PRESS INC 18348 $825.66 2
24 093-183-012 PARENTING NETWORK INC 17292 $778.14 2
25 093-184-003 INKSTER PATRICK J (TR) 8068 $0.00 2
26 093-184-004 MILLER WARREN BENTON II(TR)(WBM II 8712 $392.04 2 27 093-184-007 TRALEIKA LLC 7060 $317.70 2
28 093-184-008

TMSTERS CRMRY EMPS & DRVRS UN
#517 5990 $269.55 2
29 093-184-009 BROADMAN HOWARD R(TR)(LIV TR) 5034 $226.53 2 30 093-184-010 MILLER DAVID & BEVERLY (CO-TRS)(REV 2394 $107.73 2 31 093-184-011

EVANS EDWARD D & BRENDA
K(TRS)E&BE 12273 $552.29 2
32 093-184-012 MENDOZA MARIO & MANDI L 8500 $0.00 2
33 093-184-013 ELITE LIMOUSINE CA GP 7634 $343.53 2
34 093-185-003 TSCHANNEN BRUCE 8712 $392.04 2
35 093-185-004 CHAN JASON 8118 $365.31 2
64 April 22, 2019
Downtown Visalia PBID Management District Plan Page 35
36 093-185-005 VISALIA CITY OF 8118 $1,136.52 1
37 093-185-006 VISALIA CITY OF 8118 $1,136.52 1
38 093-185-016 VINTAGE PRESS INC THE 15870 $2,221.80 1 39 093-185-017 VINTAGE PRESS INC THE 17388 $782.46 2
40 093-186-001 R H C ASSOCIATES 69791 $3,140.60 2
41 093-187-001 JV-KC REAL ESTATE PROPERTIES 7924 $0.00 2 42 093-187-002 HERFURTH JAMES R & SHIRLEY F (TRS) 9508 $427.86 2 43 093-187-003 HERFURTH JAMES R & SHIRLEY F (TRS) 8714 $392.13 2 44 093-187-004 JV-KC REAL ESTATE PROPERTIES 8717 $0.00 2 45 093-187-011 JVKC REAL ESTATE PARTNERSHIP 11480 $516.60 2 46 093-187-012 LEAL ROBERT & STACY 13782 $620.19 2
47 093-187-013 JVKC REAL ESTATE PARTNERSHIP 9588 $431.46 2 48 093-188-001

MC CULLOUGH WILLIAM A JR &
ESPERANZ 6570 $295.65 2
49 093-188-002 HILL CLARENCE H (TR) (REV TR) 6678 $300.51 2 50 093-188-003 HILL CLARENCE H (TR) (REV TR) 6678 $300.51 2 51 093-188-004 HILL CLARENCE (TR) (REV TR) 6678 $300.51 2 52 093-188-005 LEDFORD DIANE F & MERL III(TRS FAM 6678 $300.51 2 53 093-188-006 VOONG CALVON MD 6678 $300.51 2
54 093-188-007 RAIBLEY JOHN C & BARBARA J(TRS)(REV 6678 $300.51 2 55 093-188-010 SPRAGUE KEITH M & DARLENE M 6448 $290.16 2 56 093-188-011

GROEN GREGORY D & MARJORIE
JOANNE ( 13356 $601.02 2
57 093-191-001 CELILLO DON G (TR) 6552 $294.84 2
58 093-191-002 CELILLO DON G (TR) 6678 $300.51 2
59 093-191-003 CELILLO DON G (TR) 6678 $300.51 2
60 093-191-009 CELILLO DON G (TR) 6678 $300.51 2
61 093-191-010 CELILLO DON G(TR) 6678 $300.51 2
62 093-191-011 CELILLO DON G (TR) 6552 $294.84 2
63 093-191-012 WEST AMERICA BANK 13356 $601.02 2
64 093-191-013 MC INTOSH FAMILY LP 13356 $601.02 2
65 093-192-001 SAMUEL MARGUERITE(TR)(M S LIV TR) 8712 $392.04 2 66 093-192-002 LUISI STEVEN D & SHARON L (TRS) 8712 $392.04 2 67 093-192-003 PRO DEVELOPMENT LLC 17424 $784.08 2
68 093-192-004 NASH LIMITED PARTNERSHIP 8712 $392.04 2 69 093-192-005 PETERSON PAUL STANLEY & MONICA 8712 $392.04 2 70 093-192-006 LUISI STEVEN D & SHARON L (TRS) 8712 $392.04 2 71 093-192-007 SCHNEIDER GERALD M & NANCY L(TRS) 8712 $392.04 2 72 093-193-001 SA SUZANNE & LESLIE 8712 $392.04 2
73 093-193-007 VISALIA MEMORIAL DISTRICT 26136 $1,176.12 2 65 April 22, 2019
Downtown Visalia PBID Management District Plan Page 36
74 093-193-010 MILLER PRESTON 12936 $582.12 2
75 093-193-014 GHS PROPERTIES 13200 $594.00 2
76 093-193-015 VALLEY OAK CREDIT UNION 7260 $326.70 2
77 093-194-002 WHITLATCH LYMAN W & CLARE (TRS) 5357 $749.98 1 78 093-194-012 ARAGON LLC 11088 $1,552.32 1
79 093-194-013 REGENCY INVESTMENTS GP 8220 $1,150.80 1 80 093-194-014 REGENCY INVESTMENTS GP 2868 $401.52 1
81 093-194-016 DOE RUSSELL M & TAMARA J (TRS)(CH R 15708 $2,199.12 1 82 093-194-019 PERRY DANIEL M (TR) 5544 $776.16 1
83 093-194-021 MARTIN & MARTIN PROPERTIES LLC 16016 $2,242.24 1 84 093-195-001 OUZOUNIAN INVESTMENTS I 25700 $3,598.00 1 85 093-195-005 SUNCREST BANK 17381 $2,433.34 1
86 093-195-006 SUNCREST BANK 24400 $3,416.00 1
87 093-196-001 ANUPA INC 17424 $784.08 2
88 093-196-011 NASH PROPERTIES LLC 26136 $1,176.12 2
89 093-196-015 MACKLIN KAREN L 4914 $221.13 2
90 093-196-016 MACKLIN KEVIN A 3777 $169.97 2
91 093-196-017 KENT STEPHEN F & MARCIA N (TRS) 8712 $392.04 2 92 093-196-018 YEHYA NASSER AHMED 8712 $392.04 2
93 093-197-003 VALLEY BUSINESS BANK 3300 $148.50 2
94 093-197-005 BINESH BORNA 5742 $258.39 2
95 093-197-006

SIMONIAN THOMAS & CYNTHIA (TRS S
LI 2970 $133.65 2
96 093-197-007

COPPOLA GARY A(SCSR TR)(VMC REV
TR) 14111 $635.00 2
97 093-197-008 VALLEY BUSINESS BANK 43560 $1,960.20 2
98 093-198-001 VISALIA CITY OF 12600 $567.00 2
99 093-198-002 DOUGHERTY LISA M 6360 $286.20 2
100 093-198-003 ALLEN DAVID E & JAMIE E 6360 $286.20 2 101 093-198-004 EVANS BRUCE L & CYNTHIA R(TRS)(B&CE 6360 $286.20 2 102 093-198-007 MANGINI PROPERTIES FAMILY LP 6784 $305.28 2 103 093-198-008 COHN DAVID & CARYL (TR) 6430 $289.35 2 104 093-198-009 WAGNER SUSAN ALDRICH 6990 $0.00 2
105 093-198-010 SETTIMI JANINE(TR FAM TR) 13516 $608.22 2 106 093-201-003 VISALIA CITY OF 8190 $0.00 2
107 093-201-007 VISALIA CITY OF 7788 $350.46 2
108 093-201-008 VISALIA CITY OF 5691 $256.10 2
109 093-201-009 VISALIA CITY OF 5624 $0.00 2
110 093-201-010 VISALIA CITY OF 5919 $0.00 2
111 093-201-011 VISALIA CITY OF 7146 $0.00 2
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Downtown Visalia PBID Management District Plan Page 37
112 093-201-012 KAWEAH DELTA HEALTH CARE DISTRICT 18649 $839.21 2 113 093-201-013 KAWEAH DELTA HEALTH CARE DISTRICT 5800 $261.00 2 114 093-201-014 KAWEAH DELTA HEALTH CARE DISTRICT 7424 $334.08 2 115 093-201-015 KAWEAH DELTA HEALTH CARE DISTRICT 5800 $261.00 2 116 093-201-016 KAWEAH DELTA HEALTH CARE DISTRICT 5275 $237.38 2 117 093-201-018 VISALIA CITY OF 23489 $1,057.01 2
118 093-201-019 KAWEAH DELTA HEALTH CARE DISTRICT 1618 $72.81 2 119 093-201-020 KAWEAH DELTA HEALTH CARE DISTRICT 13854 $623.43 2 120 093-201-022 VISALIA CITY OF 14900 $670.50 2
121 093-201-023 POSTON JEFFERY L & MARLENE A(TRS)(R 17925 $806.63 2 122 093-202-002 VISALIA CITY OF 160556 $7,225.02 2
123 093-203-001 TSK LLC 8714 $392.13 2
124 093-203-004 KAWEAH DELTA HEALTH CARE DIST 8707 $391.82 2 125 093-203-008 KAWEAH DELTA HEALTH CARE DISTRICT 2904 $130.68 2 126 093-203-009 KAWEAH DELTA HEALTH CARE DISTRICT 3036 $136.62 2 127 093-203-010 CHERNEY PHILLIP H & LORI A 2805 $126.23 2 128 093-203-013 KAWEAH DELTA HEALTH CARE DISTRICT 13935 $627.08 2 129 093-203-014 KAWEAH DELTA HEALTH CARE DISTRICT 12486 $561.87 2 130 093-203-015 HILL CLARENCE H (TR) (REV TR) 17418 $783.81 2 131 093-204-001 RUSSELL T MITTS INC 8612 $1,205.68 1
132 093-204-002 RUSSELL T MITTS INC 8873 $1,242.22 1
133 093-204-009

MITTS THOMAS F(TR)(TR A UWO LINDA
K 16928 $2,369.92 1
134 093-204-018 KAWEAH DELTA HEALTH CARE DISTRICT 18820 $846.90 2 135 093-204-019 VISALIA CITY OF 16416 $0.00 2
136 093-204-020 KAWEAH DELTA HEALTH CARE DISTRICT 91911 $4,136.00 2 137 093-206-002 SORENSEN BRANDON N & CALI CARLIN 10824 $487.08 2 138 093-206-009 CRISTALLO LUIGI 10738 $483.21 2
139 093-206-012 KAWEAH DELTA HEALTH CARE DISTRICT 30793 $1,385.69 2 140 093-206-013 KAWEAH DELTA HEALTH CARE DISTRICT 1742 $78.39 2 141 093-206-014 KAWEAH DELTA HEALTH CARE DISTRICT 4859 $0.00 2 142 093-206-015 JOHNSON ROGER A & LYDIA A (TRS) 8250 $371.25 2 143 093-206-016 JOHNSON ROGER A & LYDIA A (TRS) 7237 $325.67 2 144 093-224-006 PATINO ALEXANDER N & MARIE L (TRS) 6678 $0.00 2 145 093-225-005 ADENIJI ADEGOKE 6572 $0.00 2
146 093-225-006 JACKSON JOHN K 6572 $295.74 2
147 093-231-009 CH-VISALIA COMMUNITY COVENANT 30165 $1,357.43 2 148 093-232-002 KISER JACOB & JAE 13386 $0.00 2
149 094-100-041 VISALIA CITRUS PACKING GROUP LP 22214 $999.63 2 150 094-100-042 VISALIA CITRUS PACKING GROUP LP 32275 $1,452.38 2 67 April 22, 2019
Downtown Visalia PBID Management District Plan Page 38
151 094-221-010 VISALIA CITY OF 24893 $3,485.02 1
152 094-221-015 MISSION LINEN SUPPLY 9331 $1,306.34 1
153 094-221-016 4 CREEKS INVESTMENTS LLC 35719 $5,000.66 1 154 094-231-001

WILLIAM & DORIS LAND & ENERGY CO
LL 1184 $165.76 1
155 094-231-014

WILLIAM & DORIS LAND & ENERGY CO
LL 16334 $2,286.76 1
156 094-231-021 EZELL HUGH L (610) 1686 $236.04 1
157 094-231-023

WILLIAM & DORIS LAND & ENERGY CO
LL 16847 $2,358.58 1
158 094-235-019 SHARMA DINESH & DIANE L(TRS)(REV LI 30800 $4,312.00 1 159 094-240-001 ELMA LAND 12141 $546.35 2
160 094-240-002 VISALIA CITY OF 21780 $980.10 2
161 094-240-013 AEQUUS HOLDINGS LLC 19496 $2,729.44 1
162 094-240-040 VISALIA CITY OF 23986 $1,079.37 2
163 094-240-041 VISALIA CITY OF 12842 $577.89 2
164 094-240-044 AMIDI PARTNERS LLC 43149 $1,941.71 2
165 094-250-038

CUSENZA FAMILY LIMITED
PARTNERSHIP 65340 $2,940.30 2
166 094-250-039

CUSENZA FAMILY LIMITED
PARTNERSHIP 6144 $276.48 2
167 094-250-045 VISALIA CITRUS PACKING GROUP LP 33687 $1,515.92 2 168 094-250-046 VISALIA LAND & INVESTMENT CO LLC 47916 $2,156.22 2 169 094-271-004

KOOBATIAN STEVEN D & KARIN BETH
(CO 19428 $874.26 2
170 094-271-005 TWINPALMSDINUBA LLC 9174 $412.83 2
171 094-272-007 PEREZ EDDIE R & SUSIE S 8194 $0.00 2
172 094-272-008 H2KW 8250 $371.25 2
173 094-273-004 FISHER INVESTMENT GROUP LLC 8133 $365.99 2 174 094-273-005 FISHER INVESTMENT GROUP 8130 $0.00 2
175 094-273-006 AGUIAR MANUEL TOSTE (TR) 16255 $731.48 2 176 094-274-006 FAMILY HEALTHCARE NETWORK 32670 $1,470.15 2 177 094-281-001 BIANCO PHILIP S & MAUREEN A 5197 $233.87 2 178 094-281-002 CH-CHRISTIAN FAITH FELLOWSHIP-VIS 5197 $233.87 2 179 094-281-003 CH-CHRISTIAN FAITH FELLOWSHIP-VIS 5952 $267.84 2 180 094-281-004 LOCAL 1109 UNITED BROTHERHOOD OF 16275 $732.38 2 181 094-281-005 BIANCO PHILIP S & MAUREEN A 8167 $367.52 2 182 094-281-006 BIANCO PHILIP S & MAUREEN A 4083 $183.74 2 183 094-281-007 TULARE COUNTY OF 16335 $735.08 2
184 094-281-009 BIANCO PHILIP S & MAUREEN A 4083 $183.74 2 185 094-282-001 KOOBATIAN STEVEN D & KARIN (TRS) 8184 $368.28 2 68 April 22, 2019
Downtown Visalia PBID Management District Plan Page 39
186 094-282-002 MADRIGAL RITA IRENE 16335 $735.08 2
187 094-282-003 DOWNS ELIZABETH A 3575 $160.88 2
188 094-282-004 DOWNS ELIZABETH A 6580 $296.10 2
189 094-282-005 ARTS VISALIA 6188 $278.46 2
190 094-282-006 SAFCO OF AMERICA LLC 8184 $368.28 2
191 094-282-007 VARTANIAN JOHN G JR (TR BYPASS TR) 18480 $831.60 2 192 094-283-001 VISALIA CITY OF 66957 $3,013.07 2
193 094-284-006 VISALIA CITY OF 9822 $441.99 2
194 094-284-008 FAMILY HEALTHCARE NETWORK 54885 $2,469.83 2 195 094-285-001 SUMIDA ROY Y & LINDA H (TRS) 8118 $1,136.52 1 196 094-285-008 VISALIA CITY OF 32670 $4,573.80 1
197 094-285-009 SUMIDA KAMIO J & TAKAKO J (TRS) 15963 $2,234.82 1 198 094-285-010 SUMIDA ROY Y & LINDA H (TRS) 8550 $1,197.00 1 199 094-285-014 PILE PARTNERS #1 LLC 14698 $661.41 2
200 094-285-015 VISALIA CITY OF 17294 $778.23 2
201 094-285-017 VISALIA CITY OF 32536 $1,464.12 2
202 094-286-002 GREGORY CYNTHIA C (TR) 32670 $4,573.80 1 203 094-286-003 ON TRACK VENTURES LLC 32670 $1,470.15 2 204 094-287-001 TULARE COUNTY OF 69696 $9,757.44 1
205 094-291-001 VISALIA CITY OF 18315 $2,564.10 1
206 094-291-005 BFD INVESTMENT CO LLC 10148 $1,420.72 1 207 094-291-006 FREITAS DANIEL S & JEANETTE A 6290 $880.60 1 208 094-291-007 SCIACCA SAM A & MARLENE (TR) 3185 $445.90 1 209 094-291-008 KNOWLES KENNETH K (SURV TR) 2226 $311.64 1 210 094-291-009 FREITAS DANNY & JEANETTE 10482 $1,467.48 1 211 094-291-011 VISALIA CITY OF 14355 $2,009.70 1
212 094-292-012 BK OF AMER NATL TR & SAV ASSN 67518 $9,452.52 1 213 094-293-002 ESTES DONALD R & LYDIA B(TRS FAM RE 10339 $1,447.46 1 214 094-293-003 ESTES DONALD R & LYDIA B(TRS FAM RE 10306 $1,442.84 1 215 094-293-004 VISALIA CITY OF 10642 $1,489.88 1
216 094-293-006 THREE TEN CENTER STREET LLC 27123 $3,797.22 1 217 094-293-007 THREE TEN CENTER STREET LLC 5547 $776.58 1 218 094-294-013 LUM CHRISTOPHER M (TR) 12733 $1,782.62 1 219 094-294-014 SCHAEFER KIMBERLY LUM(TR)(LIV TR) 19823 $2,775.22 1 220 094-294-015 CURTI KENNETH J(TR)(K J CURTI TR) 19746 $2,764.44 1 221 094-294-016 CURTI KENNETH J (TR) (KJC 1999 TR) 10952 $1,533.28 1 222 094-295-008 LEE CHE PING & CHUI PING 33901 $4,746.14 1 223 094-295-010 WHITTLESEY MARK (TR) 33898 $4,745.72 1 224 094-296-001 VISALIA CITY OF 7722 $1,081.08 1
225 094-296-002 CORTES GILBERTO & ALICIA (TRS) 3960 $554.40 1 69 April 22, 2019
Downtown Visalia PBID Management District Plan Page 40
226 094-296-005 YOUNG ALBERT(CO TR)(YKY LIV TR) 4974 $696.36 1 227 094-296-006

KORSGADEN TROY LEE(TR)(TLK SEP
PROP 4530 $634.20 1
228 094-296-009 EQUITABLE HOTELS 16335 $2,286.90 1
229 094-296-010 CALTERRAS 4083 $571.62 1
230 094-296-011 LESLIE A MOSLEY LLC 3844 $538.16 1
231 094-296-012 BEVERLY FABRICS INC 5761 $806.54 1
232 094-296-013 BREWBAKERS INC 2400 $336.00 1
233 094-296-014 LESLIE A MOSLEY LLC 3713 $519.82 1
234 094-296-015 LESLIE A MOSLEY LLC 4368 $611.52 1
235 094-296-016 LESLIE A MOSLEY LLC 7440 $1,041.60 1
236 094-296-017 ADCC VISALIA OFFICE PARNTERS LLC 7870 $1,101.80 1 237 094-296-018 VISALIA CITY OF 48473 $6,786.22 1
238 094-296-019 315 E MAIN STREET LLC 10890 $1,524.60 1 239 094-298-001 GARCIA CAROL J (SCSR TR) 5816 $814.24 1 240 094-298-002

THOMPSON CYRIL ROBERT & ELIZABETH
J 3921 $548.94 1
241 094-298-003

VALENCIA REVOC FAMILY TR DATED
2/11 2496 $349.44 1
242 094-298-004 SCIACCA SAM A & MARLENE E(TRS)(FAM 3659 $512.26 1 243 094-298-005 BULLOCK-GOLDEN PARTNERSHIP 3489 $488.46 1 244 094-298-006 NOBLE INVESTORS LLC 3805 $532.70 1
245 094-298-007 1329 W RANCHO VISTA BLVD LLC 2336 $327.04 1 246 094-298-008 1329 W RANCHO VISTA BLVD LLC 5606 $784.84 1 247 094-298-011 VISALIA CITY OF 9012 $1,261.68 1
248 094-298-012 FOUR CREEKS LODGE 94-IOOF 8032 $1,124.48 1 249 094-298-013 VISALIA CITY OF 7447 $1,042.58 1
250 094-298-015 LINDSEY CAROL (TR)(2016 CL SEP PROP 2310 $323.40 1 251 094-298-016 SHIRK JENNIFER CONN 5857 $819.98 1
252 094-301-009 CAL-WESTERN FARMING CO 32670 $4,573.80 1 253 094-302-007 METZGER PERRY LLOYD 16335 $2,286.90 1
254 094-302-008 METZGER PERRY LLOYD 16335 $2,286.90 1
255 094-302-013 VISALIA CITY OF 26070 $3,649.80 1
256 094-302-016 VISALIA CITY OF 204732 $28,662.48 1
257 094-302-018 HOTEL CIRCLE GL HOLDING LLC 149284 $20,899.76 1 258 094-302-019 VISALIA CITY OF 60548 $8,476.72 1
259 094-302-020 VISALIA CITY OF 35550 $4,977.00 1
260 094-304-005 SMITH AUTO PARTS 8692 $1,216.88 1
261 094-304-006 216 SOUTH BRIDGE ST LP 60984 $8,537.76 1 262 094-305-002 KMK ENTERPRISES 17424 $2,439.36 1
70 April 22, 2019
Downtown Visalia PBID Management District Plan Page 41
263 094-305-003 K M K ENTERPRISES 17424 $2,439.36 1
264 094-305-008 SPS 410 INVESTMENTS LLC 23743 $3,324.02 1 265 094-305-009 SPS 410 INVESTMENTS LLC 9782 $1,369.48 1 266 094-311-011 KAWEAH DELTA HEALTH CARE DISTRICT 5170 $232.65 2 267 094-311-012 KAWEAH DELTA HEALTH CARE DISTRICT 9405 $423.23 2 268 094-311-014 KAWEAH DELTA HEALTH CARE DISTRICT 12524 $563.58 2 269 094-311-019 KAWEAH DELTA HEALTH CARE DISTRICT 8464 $1,184.96 1 270 094-311-020 KAWEAH DELTA HEALTH CARE DISTRICT 420789 $18,935.51 2 271 094-311-021 ELLISON BETTY TAYLOR (TR BYPASS TR 8184 $1,145.76 1 272 094-311-022 KELLER DENNIS R & CATHLYN A(TRS) 8150 $1,141.00 1 273 094-311-023 202 W WILLOW LLC 12540 $1,755.60 1
274 094-311-024 202 W WILLOW LLC 10329 $1,446.06 1
275 094-311-025 PACIFIC BELL 22568 $3,159.52 1
276 094-313-005 U S A USPS 32736 $4,583.04 1
277 094-313-009 VISALIA MASONIC BUILDING ASSN 17424 $784.08 2 278 094-313-010 J S T LLC 17424 $784.08 2
279 094-313-013 VISALIA CITY OF 34141 $1,536.35 2
280 094-313-014 WILLOW STREET DEVELOPMENT CO LLC 46609 $6,525.26 1 281 094-321-003

MARTIN MICHAEL A & DARLENE M (CO-
TR 12750 $1,785.00 1
282 094-321-004

MARTIN MICHAEL A & DARLENE M(TRS
FA 12750 $1,785.00 1
283 094-321-007 VISALIA CITY OF 26928 $3,769.92 1
284 094-322-001 CENTRAL VALLEY COMMUNITY BANK 16335 $2,286.90 1 285 094-322-002

FRANEY ROGER G (CO-TR)(EMF BYPASS
T 16335 $2,286.90 1
286 094-322-003 VISALIAN FRIENDS OF THE FOX THEATRE 15411 $2,157.54 1 287 094-322-004 FRANEY FAMILY LIMITED PARTNERSHIP 8406 $1,176.84 1 288 094-322-005 320 W MAIN LLC 7005 $980.70 1
289 094-323-003 MARTIN & MARTIN PROPERTIES LLC 28538 $3,995.32 1 290 094-323-004 LUCIO MARK A & LEE ANN E 3960 $554.40 1 291 094-323-005 KENT MARCIA & STEPHEN F (TRS) 2838 $397.32 1 292 094-323-006 MITCHELL WILLIAM N (TR LIV TR) 2838 $397.32 1 293 094-323-007 SIMONS JAMES F 3990 $558.60 1
294 094-323-008 BIANCO JOHN P & SUZANNE M 3713 $519.82 1 295 094-323-009 GARCIA INVESTMENTS 6421 $898.94 1
296 094-323-011 BRITTBRANDT PROPERTIES LLC 5280 $739.20 1 297 094-323-012 VISALIA CITY OF 9396 $1,315.44 1
298 094-324-001 120 W MAIN ST LLC 7706 $1,078.84 1
299 094-324-002

RANSBERGER WILLIAM RAY & JUDITH
LEE 7705 $1,078.70 1
71 April 22, 2019
Downtown Visalia PBID Management District Plan Page 42
300 094-324-003

CUSENZA FAMILY LIMITED
PARTNERSHIP 15645 $2,190.30 1
301 094-324-007 SHAHAN ROBERT & SABRINA(TRS LIV TR) 8999 $1,259.86 1 302 094-324-009 VISALIA CITY OF 23667 $3,313.38 1
303 094-325-002 MC ALPINE BETTY SUE (TR) 5018 $702.52 1 304 094-325-003 BOOKOUT RALPH & BETTY (TRS) 15411 $2,157.54 1 305 094-325-012 JILANI SHAIQUEL 10519 $1,472.66 1
306 094-325-015 LOURENCO CARLOS 5650 $791.00 1
307 094-325-016 VISALIA CITY OF 15842 $2,217.88 1
308 094-325-017

CUSENZA FAMILY LIMITED
PARTNERSHIP 10388 $1,454.32 1
309 094-326-001 HI JACK AND BUSY BEA LLC 7706 $1,078.84 1 310 094-326-002 HI JACK AND BUSY BEA LLC 16462 $2,304.68 1 311 094-326-003 VACARRO JOE & MARIA G 2919 $408.66 1
312 094-326-004 PETERSEN MARGARET E(TR)(BYPASS TR) 2918 $408.52 1 313 094-326-005 BOOKOUT RALPH & BETTY (TRS) 9387 $1,314.18 1 314 094-326-006 WIEBE MICHELLE R (TR) (REV LIV TR) 2919 $408.66 1 315 094-326-007 VAN RYN JONATHAN A 5838 $817.32 1
316 094-326-010 COREVAL LLC 3484 $487.76 1
317 094-326-017 VACARRO JOE & MARIA G 13625 $1,907.50 1 318 094-326-018 BIANCO PHILLIP S & MAUREEN A 7624 $1,067.36 1 319 094-326-023 FAMILIA FLORES INC 7220 $1,010.80 1
320 094-326-024 CENTER FOR SPIRITUAL LIVING VISALIA 4146 $580.44 1 321 094-326-025 CHOICE PROPERTIES GP 9934 $1,390.76 1
322 094-326-026 VISALIA CITY OF 48351 $6,769.14 1
323 094-327-001 TDS INVESTMENTS LLC 16962 $2,374.68 1
324 094-327-003 KENT MARCIA & STEPHEN F (CO-TRS) 4097 $573.58 1 325 094-327-004 KAWEAH DELTA HEALTH CARE DISTRICT 31618 $4,426.52 1 326 094-331-007 VISALIA NEWSPAPERS INC 53267 $2,397.02 2 327 094-332-002 COUNTRYMAN L KENNETH (TR) 8167 $367.52 2 328 094-332-003 PARRY SUSAN 8032 $361.44 2
329 094-332-004 HILL CLARENCE H (TR) (REV TR) 7375 $331.88 2 330 094-332-006 SIERRA ELK LLC 6744 $303.48 2
331 094-332-007 SEYMOUR JEAN (TR)(EST OF) 9585 $0.00 2 332 094-332-008 HILL CLARENCE H (TR) (MARITAL DED T 8187 $368.42 2 333 094-332-009 NEPINSKY BRIAN C & VALERIE 7986 $359.37 2 334 094-332-010 KAWEAH MANAGEMENT COMPANY 6652 $0.00 2 335 094-333-005 TULARE COUNTY OF 71874 $3,234.33 2
336 094-333-006 VISALIA CITY OF 47916 $2,156.22 2
337 094-334-010 VISALIA CITY OF 43560 $1,960.20 2
72 April 22, 2019
Downtown Visalia PBID Management District Plan Page 43
338 094-334-011 VISALIA SENIOR HOUSING II INC 25525 $1,148.63 2 339 094-335-001 GAMEZ JO ANN(SCSR)(TR KCH) 12251 $551.30 2 340 094-335-004 SHEKLIAN MYRON EDWARD(SCSR TR) 8167 $1,143.38 1 341 094-335-008 DUCOR COLD STORAGE LLC 9900 $1,386.00 1 342 094-335-009 VISALIA CITY OF 9900 $1,386.00 1
343 094-335-010 FARLEY MICHAEL L & DIANE C 4703 $658.42 1 344 094-335-011 VANDERHAM ROBERT W & LENA 20139 $906.26 2 345 094-336-001 KAESTNER PHILLIP 2508 $0.00 2
346 094-336-002 SULLIVAN J PATRICK & CHRISTINE 1452 $65.34 2 347 094-336-003 225 OAK AVE LLC 4092 $184.14 2
348 094-336-004 CH-FIRST PRESBYTERIAN OF VISALIA 24354 $1,095.93 2 349 094-336-005 CH-FIRST PRESBYTERIAN OF VISALIA 7920 $1,108.80 1 350 094-336-006 CH-FIRST PRESBYTN OF VIS (TR PRES O 8180 $1,145.20 1 351 094-336-007 JKP LAND LLC 8167 $1,143.38 1
352 094-336-010 VISALIA CITY OF 8167 $1,143.38 1
353 094-337-001 STORY WALTER R & PEGGY SUE (TRS)(FA 8167 $367.52 2 354 094-337-002 KRIKOIRAN BETTY J (TR) (MAR TR B) 8167 $367.52 2 355 094-337-003 OAK STREET STUDIOS 2158 $97.11 2
356 094-337-004 METZGER KENNETH R (TR) 3635 $163.58 2
357 094-337-005 SEBERT SHAWN & DOROTHY 1872 $84.24 2
358 094-337-006 CITRUS RESEARCH BOARD 8871 $399.20 2
359 094-337-007 LEGACY INVESTMENTS LLC 7654 $1,071.56 1 360 094-337-008 LEGACY INVESTMENTS LLC 3969 $555.66 1
361 094-337-009 VALHALLA FAMILY INVESTMENTS LLC 5454 $763.56 1 362 094-337-010 VALHALLA FAMILY INVESTMENTS LLC 3969 $555.66 1 363 094-337-011 MC ALPINE BETTY SUE (TR) 7654 $1,071.56 1 364 094-337-012 VALHALLA FAMILY INVESTMENTS LLC 3969 $555.66 1 365 094-338-012 BILL & TANYA MILLER FAMILY LTD PTNS 52272 $7,318.08 1 366 094-341-005 LAIRD PHILIP B & CAROL L(TRS)LAIRD 8167 $0.00 2 367 094-341-006 LAIRD PHILIP B & CAROL L(TRS)LAIRD 8168 $367.56 2 368 094-341-007 GILBERT AVIATION INDUSTRIES INC 8167 $367.52 2 369 094-342-005 HUTTON DONALD L & CATHY A(TRS) 5331 $239.90 2 370 094-342-006 GUTIERREZ JESUS R (TR) 5445 $0.00 2
371 094-342-007 GRANGER STEPHEN 9157 $0.00 2
372 094-342-008 FORD HENRY H & SHIRLEY D(TRS)(2014 12622 $0.00 2 373 094-344-005 CH-APOSTOLIC ASMBY FAITH IN CHRIST 16335 $735.08 2 374 094-344-006

PINE MANOR RECOVERY HOME GUILD
INC 16335 $735.08 2
Total

$500,291.13

73 April 22, 2019
Downtown Visalia PBID Management District Plan Page 44
APPENDIX 4 – TOTAL ESTIMATED MAXI MUM COST OF

IMPROVEMENTS, MAINTENANCE, AND ACTIVITIES

The estimated maximum cost of the line items below was developed based on the estimated costs of providing services in the proposed DTV PBID. The costs below are estimated, the actual line item costs will fluctuate. The table below shows expenditures from assessment and non -assessed funds.

Assessment funds are governed by Section VI. There is not limit on reallocation of non -assessment funds by the Association. The total maximum budget may exceed the maximum listed in this table if parcel ownership changes results in parcels being assessed at a higher rate due to a higher estimated benefit.

Year Environmental
Enhancements
Economic
Enhancements Administration Contingency /
Reserve Total
2020 $394,343.13 $73,067.05 $42,014.40 $15,755.39 $525,179.97 2021 $433,777.44 $80,373.76 $46,215.84 $17,330.93 $577,697.97 2022 $477,155.19 $88,411.13 $50,837.42 $19,064.02 $635,467.76 2023 $501,012.95 $92,831.69 $53,379.30 $20,017.22 $667,241.16 2024 $526,063.59 $97,473.27 $56,048.26 $21,018.08 $700,603.20 2025 $552,366.77 $102,346.94 $58,850.67 $22,068.99 $735,633.37 2026 $579,985.11 $107,464.28 $61,793.20 $23,172.44 $772,415.03 2027 $608,984.37 $112,837.50 $64,882.86 $24,331.06 $811,035.79 2028 $639,433.59 $118,479.37 $68,127.01 $25,547.6 $851,587.58 2029 $671,405.27 $124,403.34 $71,533.36 $26,824.99 $894,166.96 Total $5,384,527.41 $997,688.33 $573,682.32 $215,130.73 $7,171,028.79

74 April 22, 2019
Downtown Visalia PBID Management District Plan Page 45
APPENDIX 5 – SERVICES BY ZONE

Zone Environmental
Enhancements
Economic
Enhancements Administration Contingency /
Reserve
1  Pressure washing
of sidewalks.
 Tree lighting.
 Dumpster
enclosures clean
and sanitized.
 Christmas
decorations.
 Enhanced
landscaping.
 Capital
improvement
projects (new
street light
enhancements).
 Graffiti removal.

 Programs and
incentives designed
to attract, grow, and
incubate new
businesses.
 In-lieu parking
program to remove
barriers to
downtown
development.
 Promotions to
improve the
downtown image
and invite customer
to assessed parcels.

Administrative
costs related to
providing activities,
maintenance, and
improvements.

Funds held in
contingency /
reserve to be used
as determined by
the Association.
2  Pressure washing
of sidewalks (as
needed).
 Dumpster
enclosures clean
and sanitized (as
needed).
 Graffiti removal.
 Some capital
improvement
projects.

 Programs and
incentives designed
to attract, grow, and
incubate new
businesses.

Administrative
costs related to
providing activities,
maintenance, and
improvements
Funds held in
contingency /
reserve to be used
as determined by
the Association.

75 April 22, 2019
Downtown Visalia PBID Management District Plan Page 46
APPENDIX 6 – MAP

76 6
14 3
5 2
6 23241413 16147 15 32 2533 2618

W SCHOOL AVE
N W

ILLIS STW GOSHEN AVE
Downtown
Visalia
PBID
Zone 1
Zone 2
²
1 5
3 7
2 4
98 6 Page
1 of 9
77 335
373374372 371
170
338326
368
367
366
370
369
178336 337329328327333 179
CR-J32

N FLORAL ST

W RACE AVE

N COURT ST
Downtown
Visalia
PBID
Zone 1
Zone 2
²
1 5
3 7
2 4
98 6 Page
2 of 9
78 165
168
167
176
150
149
169 175
192 194 164
171172
173
174
166
186185180 159
GARDEN

N BRIDGE ST

N CHURCH ST
Downtown
Visalia
PBID
Zone 1
Zone 2
²
1 5
3 7
2 4
98 6 Page
3 of 9
79 40
73 14
12 39
7 67
11 147
17 38
83 46
81 56
64 63
18 75 74
9 23
8 24
45 31
78 15
20 47
42 16
148
43 2122
72 6869
66 70
65 71
44 76
41 19
34 35
36 37
49 50 51
54 53
52 60
59 61
58 55
27 48
62 57
28 32
82 25
77 10
33 29
79 26
80 144
145
146
30 6 13

W OAK AVE

W CENTER ST

N JOHNSON ST

N CONYER ST
Downtown
Visalia
PBID
Zone 1
Zone 2
²
1 5
3 7
2 4
98 6 Page
4 of 9
80 365
326 336
337
204
289
283
348
302
344
338
205285284
183
300286
335
281282
339
210
342
341
331
297
301
358
287
354
353
332
340
350
349
352
351
334
299
298
359363
288
330
295
361
327
328
329
333
177
296
343
347
360362364
290
179
293
294
356
208
291
292
345
355
209
357
346

W MAIN ST

W CENTER ST

N FLORAL ST

N COURT ST
Downtown
Visalia
PBID
Zone 1
Zone 2
²
1 5
3 7
2 4
98 6 Page
5 of 9
81 212
192 194
162
204
164
203
202
201
196
216
160
219
220
161
191
200
157
155
197
211
199 163
218
221
213214
186
215
180
193
206
198
195
181
190 159
188189
207
217
182
187
184
156154

E MAIN ST

E OAK AVE

N CHURCH ST

N SANTA FE ST
Downtown
Visalia
PBID
Zone 1
Zone 2
²
1 5
3 7
2 4
98 6 Page
6 of 9
82 122 136
97 88
84 86
139
87 117
96 85
112
98 134
121 130
135
133120
119
128
105
91 92
129
137
138
99 132
123
124
131
94 142
106
111
107
114
89 143
104
102
103
100
101
110
115
113
108
90 109
116
93 141
95 126
125
127
140118

W ACEQUIA
Downtown
Visalia
PBID
Zone 1
Zone 2
²
1 5
3 7
2 4
98 6 Page
7 of 9
83 270
257
322
280
279
276
325
275
277
323
278
310
252
307
304317
273
268
305
308
274
321
267
313
269
272
271
248
309
318
249
319
315
239
306
303
266
320
324
240
316
242
314
311
312
241

W MINERAL KING AVE

S LOCUST ST
S W
EST ST
Downtown
Visalia
PBID
Zone 1
Zone 2
²
1 5
3 7
2 4
98 6 Page
8 of 9
84 256
257
261
258
237
153
259
223 222 158
255
151
264
262 263
252
253 254
228
265
238
152
260
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85 Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 25-0099 Agenda Date: 5/19/2025 Agenda #: 2.

Agenda Item Wording:

Town-Center Business Improvement Area Annual Report - Accept and approve the Annual Town -Center Business Improvement Area Report, renewing the Management Agreement with Downtown Visalians, Inc. for an additional one-year term to begin July 1, 2025.

Deadline for Action: 5/31/2025
Submitting Department: Finance and Technology Services
Contact Name and Phone Number:

Melody Murch, Assistant Finance Director (559) 713-4379, [email protected] Ruth Pena Financial Analyst, (559) 713-4327, [email protected] Department Recommendation:

That Council accept and approve the Annual Report for the Town-Center Business Improvement Area (TCBIA), renewing the TCBIA Management Agreement with Downtown Visalians, Inc. for an additional one-year term to commence July 1, 2025.

Background Discussion:

Summary:

Business owners located in the Town-Center Business Improvement Area (TCBIA) have voluntarily voted to pay a surcharge on their Business Tax (BT) for the purpose of providing parking, decorations, music, and promotion of public events and Downtown businesses. The revenue from this surcharge is collected during the City's BT billing process, and administered by Downtown Visalians, Inc. (DTV) through a management agreement with the City. This agreement requires submission of an Annual Operations Report (Report) of all matters covered under the agreement for the preceding fiscal year. Approval of the report triggers renewal of the management agreement for another year. The Calendar Year 2024 Report is provided as Attachment A Part 1, and Attachment A Part 2 to this agenda item.

The current TCBIA Management Agreement was initially approved in May 2023, and the current one- year term runs from July 1, 2024, to June 30, 2025. The agreement is renewable annually, and according to the agreement terms, acceptance and approval of the attached annual report will renew the agreement for an additional one-year term, commencing on the following July 1st. Acceptance and approval of the annual TCBIA 2024 report will renew the management agreement for a term which will run from July 1, 2025, to June 30, 2026.

Background:

The economic vitality of the Downtown Visalia area has long been a high priority for both the City, and the business owners located there. The Town-Center Business Improvement Area (TCBIA) was formed with the support of Downtown business owners, under the authority of State legislation in 1966 to support merchants in the downtown area. The formation of the TCBIA generated revenue Visalia City Council Printed on 5/16/2025Page 1 of 4
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1966 to support merchants in the downtown area. The formation of the TCBIA generated revenue with a 100% business tax surcharge for the purpose of improving the downtown area and promoting businesses located there. The TCBIA has generated an average of $183,225 in Downtown Surcharge annually over the last 7 calendar years and is projected to receive $205,000 in 2025. This funding, shown in Graph 1: TCBIA 7-Year Average, is tied directly to business revenues within the Downtown area, and for this reason fluctuates based upon economic conditions. The data in Graph 1 shows the annual revenue returning to pre-Covid levels with an overall upward trend.

The DTV was formed in 1963 and laid the foundation for the long-standing efforts of both the business owners and the City to keep Downtown Visalia thriving. The DTV was instrumental in the adoption of the TCBIA, and this funding source was enacted to support their activities. For this reason, the DTV has been contracted for the administration of the TCBIA since inception, and as noted in the management contract, the DTV Board also serves as the TCBIA Board. Membership of this board is limited to property and business owners in the Downtown area and is governed by the DTV Board By-Laws. A listing of current DTV and POA Board members is included in the attached report.

The TCBIA was formed under the California Streets and Highways Code, Part 5. Parking and Business Improvement Area Law of 1965 (Sections 36000-36081). Under this law, the TCBIA revenue may be used for the following purposes:
a)The acquisition, construction, or maintenance of parking facilities for the benefit of the area. b)Decoration of any public place in the area.
c)Promotion of public events which are to take place on, or in public places in the area.

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d)Furnishing of music in any public place in the area.
e)The general promotion of retail trade activities in the area.

The report required by State Law and the Management Agreement is to include:
i. All actual revenue, activities and expenditures during the Program year of the TCBIA ii. A specific management plan, including operating budget, for the following Program year.

Report Elements
Financial and Budget Information: The report included in Attachment A, Part 1 & Part 2 contains a summary of receipts and disbursements for the 2024 Calendar Year (January 1-December 31) as well as the 2025 Budget which lists planned and projected revenues and disbursements. The expenditures summarized in the report comply with the requirements of the Parking and Business Improvement Area Law of 1965 as summarized above.

Fiscal Impact:

The TCBIA surcharge is one of many funding sources used by the DTV to promote Downtown businesses. 100% of the revenue generated from the TCBIA surcharge is collected by the City and passed through to the DTV to be used for the purposes stated in California Law and discussed above. All funds collected are paid to the DTV quarterly, and the full balance of 2024 collections through December 31, 2024, was paid to the DTV at the end of the 2024 calendar year.

Billing for these funds happens concurrently with collection of the regular business tax payments at no material increase in cost to the City.

Prior Council Action:

June 3, 2024: Approval of TCBIA Management Agreement for July 2024 to June 2025 Other: The Annual Operations Report for the Downtown Visalia Property and Business Improvement District (DTVPBID) is also being brought to council on 5/19/25.

Alternatives: None recommended.

Recommended Motion (and Alternative Motions if expected):

I move that council accept and approve the Annual Report for the Town-Center Business Improvement Area (TCBIA), renewing the TCBIA Management Agreement with Downtown Visalians, Inc. for an additional one-year term to commence July 1, 2025.

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

Attachment A: (Part 1) TCBIA Annual Report for the 2024 Calendar Year Attachment A: (Part 2) Financial Report TCBIA 2024 Calendar Year Attachment B: TCBIA Management Agreement
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Attachment C: TCBIA Boundary Map
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Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 25-0145 Agenda Date: 5/19/2025 Agenda #: 3.

Agenda Item Wording:

Massage Establishment Ordinance Discussion - Consideration of and direction on initiating potential Municipal Code updates to Visalia Municipal Code Chapter 5.68 Massage Establishments.

Deadline for Action: 5/19/2025
Submitting Department: Community Development
Contact Name and Phone Number:

Tracy Robertshaw, Neighborhood Preservation Manager, (559)713-4187, [email protected]
Paul Bernal, Planning and Community Preservation Director, (559)713-4025, [email protected] Department Recommendation:

Staff recommends that City Council conduct a review of Chapter 5.68 that governs how massage establishments operate and conduct business. Based on the information provided, the City Council may direct staff to formulate changes related to massage establishments and begin processing a Municipal Code Text Amendment to implement these changes.

Executive Summary:

In March of 2024, based on an increase in requests for Conditional Use Permits (CUP) for massage establishments Council approved an Urgency Ordinance to regulate the location and operational requirements for massage establishments. In doing so, staff also informed the City Council that staff would also seek to update the current massage business requirements/regulations as defined in Chapter 5.68 Massage Establishments of the Visalia Municipal Code.

This Work Session staff report is an overview of staff’s recommendations to the City Council on changes the Council could direct staff to implement, including additional input from the Council on items they would like to have addressed in the massage ordinance update which will be brought back to the City Council for consideration to adopt at a future public hearing. Please note direction received from the City Council regarding potential changes to Chapter 5.68 will also be shared with the appropriate stakeholders for their input prior to bringing back a formal ordinance adoption through the public hearing process.

Background Discussion:

Upon the adoption of the urgency ordinance, a Code Enforcement Officer was assigned to inspect approved massage establishments to assure that the businesses were in compliance with the current municipal code, their Conditional Use Permit (CUP) approvals for those establishments that were permitted to operate subject to a CUP approval, as well as the urgency ordinance. Over the course of five months, 60 proactive inspections were conducted and 29 of those locations were found to be in violation. While some of the violations were minor and easily corrected, some were significant, resulting in 15 of the establishments issued a Cease and Desist order. Of those issued a Cease and Visalia City Council Printed on 5/15/2025Page 1 of 7
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resulting in 15 of the establishments issued a Cease and Desist order. Of those issued a Cease and Desist order, 11 were not allowed to reopen based on the egregious nature of the violations.

Although staff were able to utilize the current ordinances as written, the inspections highlighted the need for a review of Section 5.68, as well as incorporating the Urgency Ordinance requirements to assure that the best interest of the community, as well as the massage establishments, is being served.

After reviewing both Section 5.68 Massage Establishments (see Attachment 1), the Urgency Ordinance measures (see Attachment 2), and other local municipalities massage establishment ordinances, the following is a summary of the topics that should be considered for revisions:

Recommended revisions to Chapter 5.68:

1. Update to Section 5.68.020 Definitions.

Staff’s review of the current definitions contained in Section 5.68.020 has noted that several of these definitions can be updated and several new definitions should be incorporated based on staff’s analysis of other municipalities massage establishment ordinances, including information obtained from the California Certified Massage Therapy Council (CAMTC). The addition of new definitions as recommended by staff include:
· Authorized massage professional: means a massage professional who is identified in a permit issued pursuant to this chapter as a person employed or retained by a massage establishment to practice massage.
· CAMTC-certified massage professional: means any individual currently certified by the California Massage Therapy Council as a massage therapist or massage practitioner pursuant to Business and Professions Code Section 4600 et seq.
· "Massage," “massage therapy,” and/or “bodywork” for the purpose of this chapter: means the skillful application of touch, any method of pressure on, or friction against, or stroking, kneading, rubbing, tapping, pounding, vibrating or stimulating the external parts of the human body with the hands or with the aid of any mechanical or electrical apparatus, or other appliances or devices, with or without such supplementary aids as rubbing alcohol, liniment, antiseptic, oil, powder, cream, lotion, ointment or other similar preparations. (Exclusions to this chapter are also described in Section 5.68.110. This chapter is not intended to regulate massages that not part of a business occupation.) · "Massage establishment": means any business that offers massage therapy, baths or health treatments including, but not limited to, aromatherapy, vapor, shower, electric tub, sponge, hot towels, mineral fermentation, sauna, steam or any other type of bath, involving massages or baths in exchange for compensation. Home-based massage businesses and businesses that provide outcall massage services are also considered to be massage establishments. For purposes of this chapter, the term “massage establishment” may be applied to include establishments which offer or advertise themselves as providing “relaxation” or “tanning” where the essential nature of the interaction between the employee and the customer involves “massage” as defined herein. The terms, names or phrases listed on business license or fictitious name application forms are not necessarily conclusive as to the nature of the business.

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· Owner” or “massage establishment owner” means any of the following persons. ‒ The sole proprietor of a sole proprietorship operating a massage establishment. ‒ Any general partner of a general or limited partnership that owns a massage establishment.
‒ Any person who has a ten percent or greater ownership interest in a corporation that owns a massage establishment.
‒ Any person who is a member of a limited liability company that owns a massage establishment.
‒ All owners of any other type of business association that owns a massage establishment.

2. Update to Section 5.68.060 Massage establishment owner background check required.

Staff’s review of Section 5.68.060 has noted that clean language to this section is required to address background checks with clarifying language regarding persons convicted in a court of law on specific penal code offenses. Inclusion of this language, as recommended by staff, can be addressed as follows:

The applicant, if an individual, or in the case of an applicant which is a corporation or partnership, any of its officers, directors, or shareholder of the corporation's stock required to complete a background investigation, has not been convicted in a court of competent jurisdiction of any of the following offenses: Penal Code §§ 207; 236.1; 243.4; 261; 266a through 266j; 267; 314 to 316; 318; or 647(a, b, d, j); 653.22 any offense requiring registration under Penal Code § 290 or Health and Safety Code § 11590; or any felony offense involving the possession, possession for sale, sale, transportation, furnishing, or giving away of a controlled substance specified in Health and Safety Code §§ 11054 to 11058, as amended; or any offense in another state which, if committed in California, would have been punishable as one (1) or more of the heretofore mentioned offenses; or any offense involving the use of force or violence upon the person of another; or any offense involving theft, embezzlement or moral turpitude.

3. Inclusion of a defined Permit Application Process.

Staff, after review recommendations from CAMTC and other municipalities massage establishment ordinances, staff recommends the update to the City’s current massage establishment ordinance define an application process that is inquisitive and robust to ensure that all information being submitted, including services offered and the name of individual(s) who the massage establishment employs or retains to perform massage therapy for compensation is required as part of the application process. Staff recommends language to include the following:
· Creation of an application (see Attachment 3 as an example of the application currently being drafted by staff).
‒ The application shall include the following information:
§ Name, address, and telephone number of the massage establishment. § The name, residence address and telephone number, and business address and telephone number of each owner of the massage establishment.

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§ The form of business under which the applicant will be conducting the massage establishment.
‒ A description of the proposed massage establishment, including the type of treatments to be administered.
§ The name of each individual who the massage establishment employs or retains to perform massage therapy for compensation.
§ Require For each owner of the massage establishment who is a CAMTC-certified massage professional, a copy of his or her current certification from the CAMTC as a certified massage practitioner or as a certified massage therapist and a copy of his or her current CAMTC-issued identification card.
§ A statement that within the last five (5) years the applicant has not failed to comply with a final court order or administrative action of an investigatory agency finding a violation of applicable federal, state and local wage and hour laws.

4. Update to Section 5.68.070 Display of Permit.

This section, after reviewing other ordinances, needs to be revised to address how a permit is obtained. Based on the inclusion of a defined application process, this section will be revised to address the display of all approvals issued by the City. Example language to address this could state the following:
· Any owner of a massage establishment or off-premise massage service must display the CAMTC certificates for all massage technicians prominently in a conspicuous place, capable of being viewed by customers or city representatives, at every location where massage is performed or conducted.
· Any persons operating under the limited exception described in Section 5.68.040(D) must display the statement from the city documenting their exemption from the CAMTC certification prominently in a conspicuous place capable of being viewed by customers or city representatives, or carry it with them for off-premise massage services.

5. Revise Section 5.68.100 Facilities and Operations.

This section, as currently drafted, did not provide additional language to help in regulating how the business should operate based on the industry’s best practices. However, when the City Council adopted the Urgency Ordinance (see Ordinance No. 2024-05) it lacks conditions related to employee and public safety, such as lighting, locked doors and residential uses. The Urgency Ordinance addressed these issues, and staff recommends that language be added to this update as follows (wording providing below is a summary, please see Attachment 2 for entire ordinance wording):
· Hours of Operation. All massage establishments shall be allowed to operate only between the hours of 8:00 a.m. and 10:00 p.m. No Massage shall be Performed between the hours of 10:00 p.m. and 8:00 a.m.
· No Massage Establishment located in a building or structure with exterior windows fronting a public street, highway, walkway, or parking area shall block visibility into the interior reception and waiting area.
· Doors. All front, reception, hallway, or front exterior doors except back or rear exterior doors used for employee entrance to and exit from the massage establishment) shall be kept Visalia City Council Printed on 5/15/2025Page 4 of 7
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unlocked during business hours.
· Minimum lighting consisting of at least one artificial light of not less than forty watts shall be provided and shall be operating in each room.
· Living Quarters Prohibited. No person or persons shall be allowed to reside, inside a Massage Establishment at any time.
· No person shall enter, be or remain in any part of a Massage Establishment while in possession of an open container of alcohol, or consuming or using any alcoholic beverages or controlled drugs.
· No Massage Establishment shall operate a school of massage or use the same facilities as that of a school of massage.

6. Inclusion of a Massage establishment inspections section.

Staff recommends that the revised massage establishment ordinance contain a section regarding the City’s ability to inspect massage establishments by either the City’s Building and Safety Division, Code Enforcement Division, Fire Department and Police Department and the County Health Department. A review of other municipalities massage establishment ordinances identified similar language, and the adopted Urgency Ordinance (see Attachment 2) also incorporated this language.

Based on this recommendation, staff recommends the following language be included as follows:

The operator and/ or on duty responsible managing employee shall consent to the inspection of the massage establishment by the City's Building and Safety Division, Code Enforcement Division, Fire Department and Police Department and the County Health Department for the purpose of determining that the provisions of this ordinance or other applicable laws or regulations are met. The City' s Building and Safety Division, Code Enforcement Division, Fire Department and Police Department and the County Health Department may, from time to time, make unannounced inspections of each massage establishment for the purpose of determining that the provisions of this chapter, State law or other applicable laws or regulations are met.

7. Update to Section 5.68.130 Revocation.

Similar to Section 5.68.100 Facilities and Operations, as noted above, this section chapter currently does not contain language related to the requirements to hold a valid California Massage Therapy Council (CAMTC). Additionally, there is very little information on criminal activity and inappropriate behavior as a cause for revocation. To address this issue, staff recommends language be incorporated into this section to address this oversight as follows:
· All massage establishment operators shall be deemed to know and understand the requirements and prohibitions of this chapter. A determination to suspend or revoke a permit issued under this chapter may be made by the inspector following an inspection. Suspensions may be issued until a specific violation has been corrected, which requires an inspection by the City for confirmation of correction. If a suspension is issued, then no massage business may be conducted by the permit holder at the specified location, or by the specified license holder. Any massage establishment permit issued pursuant to this chapter may be suspended or revoked if any of the following have occurred on even a single occasion:

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- Any disciplinary action taken by CAMTC shall be considered in determining grounds for revocation.
- The permittee or any person employed or retained by the massage establishment has been convicted in a court of competent jurisdiction of having violated, or has engaged in conduct constituting a violation of any penal code listed in 5.58.060 B. - The permittee or any person employed or retained by the massage establishment is required to register under Section 290 of the California Penal Code. - The permittee has continued to operate the massage establishment after the massage establishment permit has been suspended.
- Massage has been performed on the premises of the massage establishment, with or without the permittee’s actual knowledge, by any person who is not a duly authorized CAMTC-certified massage professional.

8. Update to Section 5.68.150 - Appeal.

This section needs to be revised to include language regarding the Administrative Hearing process outlined in Visalia Municipal Code Chapter 1.13, which is utilized in matters regarding revocation of a massage establishments permit and/or business tax certificate.

9. Conditional Use Permit Process for Massage Establishments (Section 17.25).

The City’s Zone Use Matrix, 17.25.030 list Massage Therapist as “conditionally permitted” (i.e., CUP required) in the following zones:
- Neighborhood Commercial (N-C) - Professional / Administrative Office (O-PA) - Commercial Mixed Use (C-MU) - Office Conversion (O-C) - Downtown Mixed Use (D-MU)
Whereas Massage Therapist is identified as a “Permitted” use in the Regional Commercial (C-R) zone. However, with the adoption of the Urgency Ordinance, this use requires a Conditional Use Permit while the urgency ordinance is in effect.

Staff recommends keeping the CUP requirement for “Massage Therapist / Establishments” at this time in all the zones as noted above and amend the use in the C-R zone from “Permitted” to “Conditionally Permitted”.

10. 750-foot Separation Requirement.

Additionally, staff would recommend that the 750-foot separation requirement from other massage establishments, as adopted in the Urgency Ordinance (see Attachment 2), not be required in the ordinance update. The separation requirement became an issue for small independent massage therapists seeking to relocate their sole-proprietor business to a building/location that met their needs but was no longer viable because in order to get their massage business established, in addition to the CUP process, a Variance application was also required due to the massage business not meeting the 750-foot separation requirement. This was evident with sole-proprietor massage establishments seeking to locate their business in the Bank of Sierra building in the downtown area, several of the office spaces along Church Street between Main Street and Acequia Avenue, and Sola Salon Studios located at the Sequioa Mall.

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Next Steps:

Based on direction received, staff will work on drafting updates to the Massage Establishment ordinance which will be presented to the Council at a future meeting. In addition, staff will be working to schedule a stakeholder meeting with massage establishments to discuss City Council’s direction on updates to the massage establishment ordinance and to solicit their input for additional information in preparation of the ordinance update.

Fiscal Impact:

None
Prior Council Action:
· On March 4, 2024, the City Council approved an Urgency Ordinance to regulate the location and operational requirements for massage establishments city. · On June 3, 2024, the City Council extend Ordinance No. 2024-05, an interim ordinance adopted as emergency measures to regulate the location and operational requirements for massage establishments.

Alternatives: The City Council may, in lieu of the recommended motion, direct staff to not process any amendments to Visalia Municipal Code Section 5.68.

Recommended Motion (and Alternative Motions if expected):

I move to direct staff to begin drafting revisions to Chapter 5.68 Massage Establishments, based on the information provided in the staff report, and direction provided during the work session presentation.

Environmental Assessment Status: No environmental assessment required at this time. The adoption of any ordinance changes will require environmental documentation pursuant to the California Environmental Quality Act (CEQA) to be completed by staff.

CEQA Review: The requested action is not a “project” under CEQA.

Attachments:

1. Chapter 5.68 Massage Establishments

2. Urgency Ordinance No. 2024-03

3. Draft Massage Establishment Application

4. PowerPoint Presentation
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ORDINANCE NO. 2024-05

AN INTERIM ORDINANCE TO FURTHER REGULATE

MASSAGE ESTABLISHMENTS

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

SECTION 1. Consistent with its control over municipal affairs as a charter city and the powers vested in the City of Visalia through the California Constitution, the City of Visalia is authorized to secure and promote the public health, comfort, safety, and welfare of its citizenry. The City of Council of the City of Visalia hereby makes the followings findings:

A. The City of Visalia Municipal Code Title 5 defines "Massage establishment" as follows: “means and includes any business enterprise or establishment, parlor, or any room, place or institution within a business establishment where massage is given or administered by a massage technician as a paid service” and in addition, the City of Visalia Municipal Code Title 17 defines, “Massage Therapy Establishment” as follows: “means an establishment offering massage, alcohol rub, fomentation, electric or magnetic treatment, or similar treatment or manipulation of the human body by a Certified Massage Therapist.”

B. The City of Visalia Municipal Code Title 17 currently permits Massage therapists to operate businesses under the current City of Visalia Zoning Ordinance in the Neighborhood Commercial (C -N), Commercial Mixed Use (C -MU), Downtown Mixed Use (D -MU), Professional / Administrative Office (O -PA), and Office Conversion (O-C) zones within the City of Visalia with a Conditional Use Permit (CUP) issued under Visalia Municipal Code Chapter 17.38.

C. The City of Visalia has seen an increase in requests for CUPs to operate Massage Establishments. In recent instances, such usages are proposed within close proximity to residential neighborhoods, junior college, and within shopping centers.

D. These recent instances of this proposed use near residential neighborhoods resulted in comments received from property owners concerned that this type of use should not be placed in close proximity to schools and re sidential neighborhoods, the usage was allowed because the current City of Visalia Zoning Ordinance does not require buffering distance requirements regarding this type of commercial activity near schools and residential neighborhoods. The City Council has since considered whether a specific policy should be adopted and has determined that it would be in the interest of the public health, safety, or welfare to consider changes to the municipal code on how this type of business should be further regulated.

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E. In 2008, the Legislature adopted Senate Bill 731, which created the California Massage Therapy Council, a state -organized nonprofit organization with regulatory authority over the certification of massage technicians and practitioners throughout the State of California which also limited the City' s regulatory authority over massage establishments that exclusively hire State -certified massage technicians, preempting most local licensure and permitting requirements and land use regulations and has been widely criticized by local agencies as providing massage businesses with almost unprecedented protection from local zoning and land use authority, and interfering with local law enforcement efforts to close massage businesses that allow prostitution and other illegal activities.

F. In response to the criticism against Senate Bill 731, Assembly Bill 1147 was enacted which allows local agencies to impose reasonable zoning, business licensing, and health and safety requirements on massage establishments, and the City of Visalia seeks to amend the Visalia Municipal Code to ensure that the City regulates massage establishments in compliance with the provisions of enacted State statutes.

G. The increase in requests for the operation of Massage Establishments th at has occurred in recent years does not appear to be slowing, which has raised concerns of whether illicit uses are trying to create a business front for illicit activity and a proliferation of such types of uses could result in negative impacts to the pu blic’s peace, health, safety, and welfare.

H. The potential for criminal and unsafe activity at massage establishments is particularly concerning given that some massage establishments in the City are located within proximity to places where families congregate, such as restaurants and shopping areas.

I. Code enforcement and policing efforts have found that illegal massage operations that are shut down are often replaced by similar illegal massage operations in the same location. There are significant adverse impacts from allowing illegal massage operations to remain at a given site. Impacts include decreased consumer confidence in the legal operation of future massage establishments at a site, decreased consumer confidence in the neighboring businesses, and confusion among customers regarding any connection between the closed illegal operation and a new legal operation, and detrimental effects on all surrounding businesses.

J. The City Council finds and declares the illicit and illegal activities disguising as legitimate massage establishments in the City pose health and safety threats to operators, employees, patrons, surrounding businesses, and the public, in order to address this threat to public health and safety the City Council hereby finds the adoption of the proposed urgency interim zoning ordinance to be necessary while a more specific amendment to the Municipal Code is reviewed in the normal process by the City.

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K. Further the City C ouncil finds and declares that approving additional conditional use permits to allow additional Massage Establishments within close proximity of an existing Massage Establishment would potentially be in conflict 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 by creating conditions that would adversely impact the public’s interest.

L. The City Council finds and declares that the ordinance regulations o n Massage Business shall be adopted on an interim and immediate basis to protect the public health, safety, and welfare of the community while the more permanent regulations are reviewed in additional detail.

SECTION 2. While this interim ordinance is in effect the following regulatory standards shall apply as additional limitations and requirements under the Visalia Zoning Ordinance on a Massage Establishment and/or Massage Therapy Establishment as those terms are defined in Visalia Municipal Code. Businesses that are already operating under conditional use permits in areas that would be prohibited under these regulations may continue to operate as they would constitute legal non-conforming use.

A. In addition to Conditional Use Permit being required in the Neighborhood Commercial (C-N), Commercial Mixed Use (C-MU), Downtown Mixed Use (D-MU), Professional / Administrative Office (O-PA), and Office Conversion (O-C) zones, a Conditional Use Permit shall be required for Massage Establishments/Therapist in the Regional Commercial (C-R) zone.

B. No Massage Establishment may be located within a radius of 750 feet of another Massage Establishment, as measured in a straight line, from the nearest point of the premises where said massage establishment is conducted to the nearest property line of any lot or legal parcel upon which a massage establishment is proposed to be located. Existing businesses operating a Massage Establishment that are already conducting business and in possession of all previously required licenses and/or permits for such business in the City of Visalia on the effective date of this emergency ordinance are considered existing non -conforming related to separation from all required sources as long as the permit is not revoked, or the business does not cease operation. The regulations proposed in this interim ordinance that do not concern the location of the business would apply.

C. No Massage Establishment located in a building or structure with exterior windows fronting a public street, highway, walkway, or parking area shall block visibility into the interior reception and waiting area through the use of curtains, closed blinds, tints, or any other material that obstructs, blurs, or unreasonably darkens the view into the premises.

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Ordinance No. 2024-05
D. Doors. All front, reception, hallway , or front exterior doors except back or rear exterior doors used for employee entrance to and exit from the massage establishment) shall be kept unlocked during business hours. A massage establishment may lock its exterior doors during business hours if th e establishment is owned by one individual with one or no employees. No massage may be given within any cubicle, room, booth , or any area within a massage establishment which is fitted with a door capable of being locked, unless the only door is an exterior door.

E. Minimum lighting consisting of at least one artificial light of not less than forty watts shall be provided and shall be operating in each room or enclosure where Massage Services are being performed on Clients, and in all areas where Clients are present.

F. Living Quarters Prohibited. No person or persons shall be allowed to reside, dwell, occupy or live inside a Massage Establishment at any time. Beds and floor mattresses shall not be permitted on the premises.

G. Inspections. The operator and/ or on duty Responsible Employee consents to the inspection of the massage establishment by the City's Building and Safety Division, Code Enforcement Division, Fire Department and Police Department and the County Health Department for the purpose of determ ining that the provisions of this ordinance or other applicable laws or regulations are met. The City' s Building and Safety Division, Code Enforcement Division, Fire Department and Police Department and the County Health Department may, from time to time, make unannounced inspections of each massage establishment for the purpose of determining that the provisions of this chapter, State law or other applicable laws or regulations are met.

H. No person shall enter, be or remain in any part of a Massage Establishment while in possession of an open container of alcohol, or consuming or using any alcoholic beverages or controlled drugs except pursuant to a prescription for such drugs. The Owner, Operator, or responsible managing Employee, shall not permit any su ch person, or any person who is clearly intoxicated, to enter or remain upon the premises.

I. No Massage Establishment shall operate a school of massage or use the same facilities as that of a school of massage.

SECTION 3 . 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 enforceabil ity of the remaining sections, subsections, subdivision, paragraphs, sentences, clauses or phrases of this Ordinance, or its application to any other person or circumstance. The City Council of the City of Visalia hereby declares that it would have adopted each section, subsection, subdivision, paragraph, sentence, clause, or phrase hereof, irrespective of the fact that any one or more other sections, subsections, subdivisions, paragraphs, sentences, clauses, or phrases hereof be declared invalid or unenforceable.
134
Ordinance No. 2024-05
SECTION 4. This Ordinance shall take effect immediately as an interim zoning ordinance under the provisions of California Government Code section 65858 (b). It shall be of no further force and effect forty-five (45) days from its adoption unless it is extended pursuant to Government Code section 65858(b).

SECTION 5. The City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same to be published or posted as required by law.

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SOLE PROPRIETOR (OWNER/ONE EMPLOYEE) EXISTING BUSINESS WITH CHANGES PERMIT APPLICATION TYPE (SELECT ONE):

OUTCALL ONLY

PROPOSED ESTABLISHMENT INFORMATION
Business Name:

Name of Business Owner(s):

Address:

Phone Number (Business): Mobile:

Email:

Website URL:

MASSAGE ESTABLISHMENT APPLICATION
ATTACH THE REQUIRED FEE AND A COPY OF THE FOLLOWING DOCUMENTS:

PAGE 1 OF 14
Community Preservation Division
Instructions: Complete this application and return with required documents to:

Business Tax Division located at 707 W Acequia, Visalia CA 93291 All information in this application must be answered. Incomplete applications will be denied.

Current Business Tax Application
All business documents (fictitious name, corporate name statement etc.) Current signed lease agreement with notarized property owner/homeowner association approval (if applicable)
Detailed diagram showing the interior floor plan of the premises depicting all interior rooms Color copies of all photo identification (driver’s license or passport) Color copies of CAMTC ID card and CAMTC certification
CAMTC CERTIFIED OWNER(S): Yes No
(If the business name is different from the owner’s name, a fictitious name statement must be attached) 136

MASSAGE ESTABLISHMENT APPLICATION
Monday Tuesday Wednesday Thursday Friday Saturday Sunday Site Plan Review (SPR) Number: Date of SPR Revise & Proceed:

Full Legal name of the Corporation of LLC (if applicable):

If the business is a Corporation or LLC, please provide the following:

PAGE 2 OF 14
Current registration with the California Secretary of State Articles of Incorporation or LLC Articles of Organization Names and residence addresses of each of the officers, directors, and each member or stockholder holding more than five (5) percent of the stock or ownership, along with the amount of stock held by each person.

BUSINESS INFORMATION
Provide a narrative description of services that will be provided in the proposed business, including but not limited to, exact nature of the massage, relations, tanning, sauna, hot towel wraps, baths, or other health treatments to be administered:

Hours of Operation (All massage services must terminate at 10:00 pm):

Property Owner (Legal Name) Address Phone:

Email:

SECTION 1
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I, , declare as follows:

Agent/Applicant:
purposes necessary to file an application for, and obtain a permit to Executed this day of , 20

SIGNATURES (MUST BE NOTARIZED) ATTACH ACKNOWLEDGEMENT BY NOTARY PUBLIC Located at the following address or location:

Signature of Owner
Owner Mailing Address
Owner Mailing Address (continued)
Owner Telephone
Owner Email

PROPERTY OWNER AGENT/APPLICANT
Signature of Agent
Agent Mailing Address
Agent Mailing Address (continued)
Agent Telephone
Agent Email

AGENCY AUTHORIZATION
I am the owner of certain real property bearing assessor’s parcel number (APN):

Property Owner’s Signature MUST be Notarized.

Attach acknowledgement of signature(s) by Notary Public.

Property Owner:

Owner’s Name - Print
I designate , to act as my duly authorized agent for all Agent’s Name - Print
Action Sought
relative to the property mentioned herein. I declare under penalty of perjury the foregoing is true and correct.
.

PAGE 3 OF 14

MASSAGE ESTABLISHMENT APPLICATION
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List All Employees of the Business Other Names used
or N/A Title/Position
#1
#2
#3
#4
#5
#6
#7
#8

EMPLOYEE INFORMATION
List each employee of your business, regardless of the nature of employment, including owner, partner, manager, supervisor, worker, receptionist, massage therapist, massage therapist trainee, etc. If more space is needed, make a copy of this page and attach.

PAGE 4 OF 14

MASSAGE ESTABLISHMENT APPLICATION
First Name: Last Name:

CAMTC #:

Title/Position:

Residence Address (Include City/State/Zip):

First Name: Last Name:

Residence Address (Include City/State/Zip):

Other Names or N/A:

Other Names or N/A: Title/Position:

CAMTC #:

First Name: Last Name: Other Names or N/A: Title/Position:

CAMTC #:Residence Address (Include City/State/Zip):

First Name: Last Name: Other Names or N/A: Title/Position:

Residence Address (Include City/State/Zip): CAMTC #:

First Name: Last Name: Other Names or N/A: Title/Position:

CAMTC #:Residence Address (Include City/State/Zip):

First Name: Last Name:

Residence Address (Include City/State/Zip):

Other Names or N/A: Title/Position:

CAMTC #:

First Name: Last Name:

Residence Address (Include City/State/Zip):

Other Names or N/A: Title/Position:

CAMTC #:

First Name: Last Name:

Residence Address (Include City/State/Zip):

Other Names or N/A: Title/Position:

CAMTC #:

For each employee, attach a valid form of identification (Driver’s license or other photo ID). For employees required to have a CAMTC certification, attach a colored copy of their current CAMTC ID and CAMTC Certificate.

SECTION 2
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Business Owner Information
#1
#2
#3
#4 Certification
#5
#6

MASSAGE ESTABLISHMENT APPLICATION
YES
NO
NO YES
YES Date: NO

VISALIA DIVISION OF COMMUNITY PRESERVATION
315 E. Acequia Ave, Visalia CA 93291 559-713-4534
www.visalia.gov

BUSINESS OWNER INFORMATION
Each owner of the business as defined in VMC must complete all questions of SECTION 3 (PAGES 5 -9) on a separate application form.

PAGE 5 OF 14
True Legal Name
Last Name:

List all Aliases or other names you have previously used:

CAMTC Certified?
Have you ever had disciplinary action against, suspension, or revocation of a permit or certificate to practice massage from CAMTC or any agency, city, or organization? Middle:

Certification Number:

Copy of CAMTC certification AND
Copy of CAMTC identification card must be attached
Date/Reason:Agency:

Starting with the most current, list all address, telephone numbers, and periods of residency, where you have lived during the past five (5) years:

Residence Address (include full street address, city, state, and zip-code First Name:

If “Yes,” attach copies of any related documents or notices.

Agency: Date/Reason:

Have you ever been fingerprinted at Visalia Department of Public Safety? Dates (mm/yy)
Dates (mm/yy) Residence Address (include full street address, city, state, and zip-code Dates (mm/yy) Residence Address (include full street address, city, state, and zip-code Dates (mm/yy) Residence Address (include full street address, city, state, and zip-code Dates (mm/yy) Residence Address (include full street address, city, state, and zip-code SECTION 3
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MASSAGE ESTABLISHMENT APPLICATION
Yes No
Yes No
Yes No
Yes No
Yes No
CA Penal Code Crime Description Response
182 PC Conspiracy to commit a crime
207 PC Kidnapping
220 PC Assault with intent to commit sex crimes
236.1 PC Human Trafficking
Yes No
PAGE 6 OF 14
BUSINESS OWNER QUESTIONS - SECTION 3 (CONTINUED..)
Within five (5) years immediately preceding the date of filing this application, have you received a license or permit from any jurisdiction to own or operate a MASSAGE ESTABLISHMENT or other type of business under the provisions of any ordinance or statue governing massage or somatic practice? Have you ever had such a license or permit suspended, revoked, withdrawn, or denied, (OR) were you ever notified of violations and penalties under the license or permit? Have you previously owned, operated, or been employed at any MASSAGE ESTABLISHMENT or similar business which as had their license suspended/revoked or been subjected to abatement proceedings under 11225 through 11235 (Red Light Abatement Law) of the California Penal Code ? Have you previously owned, operated, or been employed at any MASSAGE ESTABLISHMENT or similar business which as had their license suspended/revoked or been subjected to abatement proceedings under 11225 through 11235 (Red Light Abatement Law) of the California Penal Code ? Have you ever been required to register as a sex offender under the provisions of Section 290 of the California Penal Code?
Have you been convicted in any court of competent jurisdiction of any of the following offenses?

VISALIA DIVISION OF COMMUNITY PRESERVATION
315 E. Acequia Ave, Visalia CA 93291 559-713-4534
www.visalia.gov
Yes No
Yes No
Yes No
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MASSAGE ESTABLISHMENT APPLICATION
CA Penal Code Crime Description Response
243.4 PC Sexual Battery
261 PC Rape
264.1 PC Conspiracy to sexually assault
266 PC Enticing a minor female under 18 into prostitution 266a PC Taking a person against their will
266e PC Offering compensation for purposes of prostitution 266f PC Selling or imprisoning a person for immoral purposes 266g PC Placing or leaving wife in a house of prostitution 266h PC Pimping
266i PC Pandering
266j PC Providing children under 16 for lewd acts (sec 288) 267 PC Abducting a child for prostitution
314 PC Indecent Exposure
315 PC Keeping or residing in house of ill-fame
Yes No
PAGE 7 OF 14
BUSINESS OWNER QUESTIONS - SECTION 3 (CONTINUED..)
Have you been convicted in any court of competent jurisdiction of any of the following offenses?

VISALIA DIVISION OF COMMUNITY PRESERVATION
315 E. Acequia Ave, Visalia CA 93291 559-713-4534
www.visalia.gov
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
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MASSAGE ESTABLISHMENT APPLICATION
CA Penal Code Crime Description Response
316 PC Keeping or furnishing a house for prostitution
318 PC Prevailing upon person to visit place of gambling or prostitution 647(a) PC Lewd conduct in public
647(b) PC Solicit, agrees to engage, engages in any act of prostitution 647(d) PC Loitering in public toilets for lewd acts
647(j) PC Criminal invasion of privacy
653.22 PC Loitering in public with the intent to commit prostitution Yes No
PAGE 8 OF 14
BUSINESS OWNER QUESTIONS - SECTION 3 (CONTINUED...)
Have you been convicted in any court of competent jurisdiction of any of the following offenses?

VISALIA DIVISION OF COMMUNITY PRESERVATION
315 E. Acequia Ave, Visalia CA 93291 559-713-4534
www.visalia.gov
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Have you ever been convicted in a court of competent jurisdiction of any felony offense involving the possession for sales, sales, transportation, furnishing, giving away or administering any controlled substance specified in Sections 11054, 11055, 11056, 11057, 11058 of the California Health and Safety Code (or similar codes in another state), including but not limited to drugs such as methamphetamine, cocaine, heroin, PCP, marijuana, MDMA, or anabolic steroids? Have you ever been convicted in a court of competent jurisdiction of any criminal offense (misdemeanor or felony), which relates directly to the operation of a massage establishment? Yes No
Have you ever failed to comply with a final court order or administrative action of an investigatory agency finding a violation of applicable federal, state and local wage and hour laws, including but not limited to the Federal Fair Labor Standards Act, the California Labor Code, and any local minimum wage ordinance or prevailing wage requirement.

Yes No
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Date Name of Agency/City/State Case Number Charges/Circumstances/Disposition PAGE 9 OF 14
BUSINESS OWNER QUESTIONS - SECTION 3 (CONTINUED...)
Please provide the following details. Failure to report this information can be cause for denial of a massage establishment permit. Please use a separate sheet if needed.

VISALIA DIVISION OF COMMUNITY PRESERVATION
315 E. Acequia Ave, Visalia CA 93291 559-713-4534
www.visalia.gov
IF “Yes” to any of the above questions in SECTION 3 please provide the information below. You must attach copies of any documentary materials relating to the information.

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PAGE 10 OF 14

MASSAGE ESTABLISHMENTS CODE OF CONDUCT
I HAVE READ AND UNDERSTAND THE PROVISIONS OF THE VISALIA MUNICIPAL CODE CHAPTER 5.68

MASSAGE ESTABLISHMENTS, AND WILL ABIDE FULLY WITH THOSE PROVISIONS, INCLUDING BUT NOT LIMITED TO THOSE LISTED BELOW:

Operational Requirements
No massage establishment shall be kept open for business between the hours of 10:00 P.M. of one day and 8:00 A.M. the following day. A massage begun any time before 10:00 P.M. must terminate at 10:00 P.M.

The hours of operation of the massage entablement shall be displayed in a conspicuous public place in the reception and waiting area.

Patrons and visitors shall be permitted in the massage establishment only during the hours of operation.

During the hours of operation, patrons shall be permitted in massage therapy rooms only if at least one duly authorized certified massage professional is present on the premises of the massage establishment.

Patrons shall not be permitted in any employee break room on the premises.

During the hours of operation, visitors shall not be permitted in massage therapy rooms with clients except as follows:

The parents or guardian of a patron who is a minor child may be present in the massage therapy room with the minor child.

The minor child of a patron may be present in the massage therapy room with the patron when necessary for the supervision of the child
The conservator, aid or other caretaker of a patron who is elderly or disabled may be present in the massage therapy room with that elderly or disabled person.

VISALIA DIVISION OF COMMUNITY PRESERVATION
315 E. Acequia Ave, Visalia CA 93291 559-713-4534
www.visalia.gov
A list of services available and the cost of such services shall be posted in an open and conspicuous public place on the premises. The services shall be described in English and may be described in other languages as necessary. No massage establishment operator shall permit, and no person employed or retained by a massage establishment shall offer to perform any services or request or demand fees other than those posted.

The massage establishment shall keep on the premises a complete and current roster of all owners, operators, and managing employees of the massage establishment and all massage professionals and other persons employed or retrained by the massage establishment. The roster shall include the name, residence address, and phone number of each individual. The roster shall be available for inspection by city officials charged with the enforcement of this chapter.

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PHYSICAL FACILITY, BUILDING AND FIRE-CODE REQUIREMENTS
Except as otherwise specifically provided in the chapter, the following facility and building code requirements shall be applicable to all massage establishments within the city:

Main entry doors and reception and waiting area are required. One main entry door shall be provided for patron entry to the massage establishment, which shall open to an interior patron reception and waiting area immediately.

All patrons and any persons other than individuals employed or retained by the massage establishment shall be required to enter and exit through the main entry door.

Unless the massage establishment is a sole proprietorship or a home occupation with one or no other employees, the main entry door shall be unlocked at all times during business hours.

No massage establishment located in a building or structure with exterior windows fronting a public street, highway, walkway or parking area shall block visibility into the interior reception and waiting area through the use of curtains, closed blinds, tints, or any other material that obstructs, blurs or unreasonably darkens the view into the premises.

All interior doors, including massage therapy rooms or cubicles, but excluding dressing rooms, showers, and toilet rooms, shall be incapable of being locked and shall not be blocked to prevent opening. Draw drapes, curtain enclosures, or accordion-pleated closures in lieu of doors are acceptable on all inner massage therapy rooms or cubicles.

VISALIA DIVISION OF COMMUNITY PRESERVATION
315 E. Acequia Ave, Visalia CA 93291 559-713-4534
www.visalia.gov
Minimum lighting equivalent to at least one forty-watt light shall be provided in each massage therapy room or cubicle.

Beds, floor mattresses, and waterbeds are not permitted on the premises of the massage establishment, and no massage establishment shall be used for residential or sleeping purposes, which may be shown by circumstantial evidence such as the presence of bedding, pillows, sleeping bags, suitcases, clothing, toiletries or other personal belongings, cooking appliances, utensils or food in excess of a business establishment’s normal requirements.

The massage establishment shall comply with all applicable state and local building and fire codes.

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HEALTH AND SAFETY REQUIREMENTS
The massage establishment shall at all times be equipped with an adequate supply of clean and sanitary towels, coverings and linens. All towels and lines shall be stored in closed clean cabinets.

No alcoholic beverages shall be sold, served, or furnished to any patron; nor shall any alcoholic beverages be kept or possessed on the premises of a massage establishment.

No invasive procedures shall be performed on any patron. Invasive procedures include, but are not limited to:

Application of electricity that contracts the muscle
Penetration of the skin by needles
Aprasion of the skin below the nonliving, epidermal layers Removal of skin by means of any razor-edged instrument or other device or tool Use of any needle-like instrument for the purpose of extracting skin blemishes All other similar procedures

VISALIA DIVISION OF COMMUNITY PRESERVATION
315 E. Acequia Ave, Visalia CA 93291 559-713-4534
www.visalia.gov
ATTIRE AND PHYSICAL HYGIENENo person shall dress in:

Where a certified massage establishment is a home occupation, and the operator must comply with the provisions of Visalia Municipal Code Section 17.32.030 (Home Occupation Permits) Attire that is transparent, see-through, or substantially exposes the person’s undergarments Swim attire, unless providing a water-based massage modality approved by the CAMTC A manner that exposes the person’s chest, breasts, buttocks, or genitals A manner that constitutes a violation of Section 31 of the California Penal Code- Indecent Exposure
No massage establishment operator, employee, or visitor shall, while on the premises of a massage establishment or while performing any outcall massage service, and while in the presence of any patron, customer, employee or visitor, expose his or her chest, breast buttocks or genitals.

The massage establishment permit shall be displayed in an open and conspicuous place on the premises visible from the main entry door and/or reception and waiting area of the massage establishment.

DISPLAY OF PERMIT AND CERTIFICATIONS
Each person employed or retained by a massage establishment to perform massage in or on the premises or through an outcall massage service shall display on his or her person the valid current photograph bearing identification card issued to that employee by the CAMTC. A copy of each such identification card and the person’s original CAMTC certificate shall also be displayed in an open and conspicuous place visible from the main entry door and/or reception and waiting area of the massage establishment.

HOME OCCUPATION AND OUTCALL-ONLY BUSINESS EXEMPTIONS
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MASSAGE ESTABLISHMENT INSPECTIONS
The inspector shall have the right to enter any massage establishment, other than an establishment providing out call only services, during regular business hours, without a search or inspection warrant, to make reasonable inspections to ascertain whether there is compliance with the provisions of this chapter.

The massage establishment operator shall take immediate action to correct each violation noted by the inspector. A reinspection will be conducted to ensure that each violation noted by the inspector has been corrected.

For the purpose of enforcing the requirements of this chapter, all owners and operators of the massage establishment shall be jointly and severally responsible for the conduct of all massage establishment employees, agents, independent contractors, or other representatives while such persons are on the premises of the massage establishment or providing outcall massage services on behalf of the massage establishment.

VISALIA DIVISION OF COMMUNITY PRESERVATION
315 E. Acequia Ave, Visalia CA 93291 559-713-4534
www.visalia.gov
The City may suspend or revoke the massage permit, and the massage establishment shall immediately cease operation. Additionally, the City may order no other massage establishment shall be permitted to operate on that parcel by any person for a period of not less than five (5) years. If the operator is not also the legal owner of the property, notice of the revocation and five-year prohibition shall be provided the owner of record of the property.

The City may not renew a massage establishment permit until and until all due and unpaid citations issued are paid in full and all outstanding violations have been corrected.

All massage establishment operators shall be deemed to know and understand the requirements and prohibitions of this chapter. Any massage establishment permit issued may be suspended or revoked when it has been determined that the permittee or any person employed or retained by the massage establishment has violated any provision of VMC 5.68.

REVOCATION OR SUSPENSION

APPLICATION FOR MASSAGE ESTABLISHMENT PERMIT
I have read and understand the provision of Visalia Municipal Code Chapter 5.68, Massage Establishments and Massage Therapists and will abide full with those provisions, including but not limited to those listed below:

Please initial each item
CAMTC (California Massage Therapy Council) Certification is required for all individuals who practice massage therapy in the City of Visalia.

Massage therapists must always wear a valid and current CAMTC identification bade while performing massage services.

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VISALIA DIVISION OF COMMUNITY PRESERVATION
315 E. Acequia Ave, Visalia CA 93291 559-713-4534
www.visalia.gov
APPLICATION FOR MASSAGE ESTABLISHMENT PERMIT (CONTINUED...) I have read and understand the provision of Visalia Municipal Code Chapter 5.68, Massage Establishments and Massage Therapists and will abide full with those provisions, including but not limited to those listed below:

Please initial each item
A current list of all owners, managers, massage therapists and employees (including full names, addresses, phone numbers) shall always be on the premises.

I must apply for a new permit annually.The permit process can take 60 or more days.

I must apply for an amended permit whenever the information contained in the original permit application changes, including addition or removal of employees.

As a massage establishment owner, I am responsible for the conduct of all massage establishment employees, agents and other representatives when such persons are on the premises of the massage establishment or providing outcall massage services on behalf of the establishment.

CERTIFICATION
I hereby certify under penalty of perjury that the information, omission of requested information, or failure to meet the conditions established herein will subject this application to disapproval or subsequent revocation or suspension.

I do hereby authorize the City of Visalia, its agents and employees, to seek information and conduct an investigation into the truth of the statements set forth in this application and my qualifications for the requested Massage Establishment Permit.

BUSINESS OWNER NAME (PRINT) BUSINESS OWNER SIGNATURE DATE

BUSINESS OWNER NAME (PRINT) BUSINESS OWNER SIGNATURE DATE D
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MASSAGE

ESTABLISHMENTS
VMC 5.68
150

PROACTIVE INSPECTIONS
May through September 2025
60 Inspections
29 Found in Violation
11 Not Allowed to Reopen
Conditional Use Permit and/or
Business Tax Revoked
2 2
151

INSPECTIONS

HIGHLIGHTED

THE NEED

FOR CHANGES
152
Definition Changes
VMC 5.68.020
• Authorized Massage
Professional
• CAMTC Certified
Massage Professional
• Massage, Massage
Therapy
• Massage Establishment
153
Improvements to Background Checks
VMC 5.68.060
• Additional Penal Codes Added for Sexual
Misconduct
Remove 5 Year Prior History
• Improve the Application and Application
Process
Expand the Information Obtained During
the Application Process
5 5
154
Emergency
Ordinance
 Implement the Emergency
Ordinance Language into
Chapter 5.68 Massage
Establishments
• Hours of Operation
• Residential Uses
• Lighting Requirements
• No Alcohol
• Window Coverings
 Remove
• 750 Foot Separation Requirement
155
Required Inspections
Add Section Requiring
Inspections By
•Building and Safety
•Police Department
•Fire Department
•Code Enforcement
7 7
156
Revocations
VMC 5.68.130
Add Additional Language
CAMTC Violations
Criminal Activity
Sex Offender Registration Requirements
Non-licensed Employees
8 157
Appeals
VMC 5.68.150
9 Update Language to Reflect Process in
Visalia Municipal Code 1.13 Administrative
Process
158
10 Conditional Use Permits (CUP)VMC 17.25
 Massage Establishments Conditionally Permitted
 Neighborhood Commercial
 Commercial Mixed Use
 Downtown Mixed Use Professional/Administrative
Office
 Office Conversion
 Permitted by Right in Regional Commercial
 Recommend Change to Conditionally Permitted
Regional Commercial
159
Discussion and
Questions
160
Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 25-0195 Agenda Date: 5/19/2025 Agenda #: 4.

Agenda Item Wording:

Presentation by California Water Service - Presentation by Cal Water regarding the companies plan for complying with the State of California’s indoor and outdoor water regulations.

Prepared by: Presented by Stephen Johnson, Cal Water Visalia District Manager; Kevin McCusker, Cal Water Director of Government and Community Affairs Director. <https://www.linkedin.com/company/44061/>
Department Recommendation: It is recommended that the Visalia City Council receive this report from California Water Service representatives and consider how it could impact and influence Visalia citizens in the coming years. California Water Service has evolved other the years, but it’sroots in Visalia date back 99 years. Visalia was one of the first communities that an earlier version of the company provided service to; California Water Service will be celebrating 100 years in business in 2026.

Summary:

The California State Water Resources Board has adopted new regulations for indoor and outdoor water use for California citizens and issued a primer entitled “Making Conservation A California Way of Life. The water purveyor, in the City of Visalia’s case, California Water Service, is responsible for implementing the State programs and policies to meet the State mandates. The link to the California program is provided here: Making Conservation a California Way of Life Regulation | California State Water Resources Control Board
<https://www.waterboards.ca.gov/conservation/regs/water_efficiency_legislation.html> The Cal Water Representatives will be presenting the Performance Measures that the State is requiring over the next 15 years, and the programs, policies and costs that the Company has established to comply with the State mandate. The first milestone is required by June 30, 2025, with continued Performance Measure required through 2039. The Presentation will review the formulas, factors and best practices that have been established for meeting the mandates, as well as the goals required to be met in the coming years.

The Presentation includes current and future water conservation incentives that will be utilized to encourage conservation, and the budget of over $1.9 million in the coming year, more than 5 times the previous conservation budget, and to continue/increase in future years. In addition, Cal Water will be focusing on a compliance program at a cost of nearly $2.4 million annually, and also increase in future.

Fiscal Impact: The City of Visalia will pay the associated rates that Cal Water will be assessing to meet the State Requirements but specific financial impacts to the City are unknown. The Company will also be passing down these costs to all rate payers in the Visalia system.

Visalia City Council Printed on 5/16/2025Page 1 of 2
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File #: 25-0195 Agenda Date: 5/19/2025 Agenda #: 4.

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

This is an informational item and no motion is required.

Environmental Assessment Status: N/A
CEQA Review: N/A
Deadline for Action: N/A
Attachments:

1. Cal Water Presentation

2. Cal Water’s recommendation for revisions to the City of Visalia Water Conservation Ordinance.

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California Water Service
Quality. Service. Value.®
Making Conservation a California Way of Life
Requirements, Impacts, and Compliance
May 2025
163
2 Agenda
• Historical and Current Context
• Making Conservation a California Way of Life – Regulatory Framework • Visalia Urban Water Use Objective
• Visalia Current Conservation Programs
• Visalia Compliance Plan
164
3 Visalia Production and Population (2004 – 2023)
20,000
25,000
30,000
35,000
40,000
100,000
110,000
120,000
130,000
140,000
150,000
160,000
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Total Production, AF
Population
Population Production
35 % 14 %
165
4 Visalia Per Capita Water Use (2004 – 2023)
100
120
140
160
180
200
220
240
260
280
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 36 %
166
5 How Did We Get Here?
•Senate Bill
X7-7 (20%
by 2020)
2009
California
Water Plan
Update
2014
Governor
Brown
Issued EO
B-37-16
2016
167
6 How Did We Get Here?
• Senate Bill
606/Assembly
Bill 1668
• Making
Conservation a
California Way
of Life Primer
released
2018
• DWR
recommendations
released
• Water Loss
Regulation
adopted by
SWRCB
2022
Regulation
adopted by
SWRCB
2024
168
7 Three Major Components
169
8 CII Performance Measures
Action Compliance Date Ongoing
Activities
Identify buildings that meet “disclosable buildings” threshold according to CEC and supply building owners information by request.

June 2024 or
regulation effective
date
Classification of CII properties with ENERGY STAR ++++ June 30, 2027 Maintain 95%, assessed annually
170
9 CII Best Management Practices Options
Action Compliance Date Ongoing
Activities
BMP Choose Your Own Adventure PART I
Track 1: ID top 2.5% CII Users & Top 20% CII Users
Track 2: ID top 2.5% CII Users & Top 20% CII Users in each classification category
Track 3: ID CII Users based on Defined Thresholds
Track 1: June 30, 2025
Track 2: June 30, 2027
Track 3: June 30, 2029
Maintain 95%,
assessed on annual
basis
BMP Choose Your Own Adventure PART II
Track 1 and 2: Top 2.5% CII Users design implement 2 BMPs from each category Track 1 and 2: Top 20% CII Users design and implement 1 BMP from each category Track 3: Design and implement 1 BMP from each category
All Tracks: June 30, 2039 Maintain programs
171
10 The 5 CII BMPs Categories
• Outreach, Technical Assistance, and Education BMP
– Examples: workshops, advertisements, phone calls/visits • Incentive BMP
– Examples: rebates/cost-sharing for fixtures, certification programs • Landscape Programs BMP
– Examples: irrigation check-ups, irrigation schedule training, turf removal program • Collaboration and Coordination BMP
– Examples: coordination with “green” building certification, collaboration with NGOs on outreach
• Operational BMP
– Examples: smart meter replacement, billing procedures 172
11 CII Performance Measures
Action Compliance
Date
Ongoing
Activities
DIM installation or in-lieu technology plus 2 BMPs on large landscapes (threshold = ½ acre landscape)
June 30, 2039 Maintain 95%,
assessed on
annual basis
In-Lieu technologies include at least one of the following:

1. Water budget-based rate structure

2. Water budget-based management program without a rate restructure

3. Installation of technologies that enable the supplier to identify, estimate, and analyze outdoor water use (may include AMI)

4. Use of technologies that enable the supplier to identify, estimate, and analyze outdoor water use (may include remote sensing)

5. Other in-lieu technologies that enable the supplier to identify, estimate, and analyze water use or improve outdoor water use efficiency
173
12 Calculating the Urban Water Use Objective
174
13 Indoor Residential Water Budget - SB 1157 (2022)
ORIGINAL indoor standard (from 2018 legislation)
2020: 55 GPCD
2025: 52.5 GPCD
2030: 50 GPCD
Indoor Residential Standard x Service Area Population x 365 days
2020-2024: 55 GPCD
2025-2029: 47 GPCD
2030 onward: 42
GPCD
175
14 Outdoor Residential Water Budget
(Routdoor) = LAM x LEF x (ETo-Peff) x 0.62
Routdoor = Water budget for efficient residential outdoor water use (gallons/year)
LAM = Landscape area for a water supplier (sq. ft)
LEF = Landscape Efficiency Factor (unitless) represents a percentage of reference ETo; function of plants’ water needs & irrigation efficiency ETo = Reference evapotranspiration (inches)
Peff = Effective precipitation (inches)

0.62 = unit conversion factor
176
15 Outdoor Landscape Efficiency Factors (LEF)
Compliance
Start Date
Irrigable – Irrigated
(II)
Irrigable – Not
Irrigated (INI)
Special Landscape
Areas (SLA)
New Construction
(post 1/1/2019)
July 1, 2025 0.80 0.80
until LAM data updated

1.0 0.55
July 1, 2035 0.63 N/A
until LAM data updated

1.0 0.55
July 1, 2040 0.55 N/A
until LAM data updated

1.0 0.55
177
16 Visalia Urban Water Use Objective (including 20% INI Buffer) Compliance
Year
Standard-based budgets (R-GPCD + Water Loss) Urban
Water Use
Objective
(R-GPCD +
Water Loss)
2022-23
Avg. Use
(R-GPCD +
Water Loss)
Residential
Indoor*
Residential
Outdoor*
CII
landscapes
with DIMs
Real Water
Loss
2024 55.0 72.0 0.0 1.9 128.9
117.3
2027 47.0 72.0 0.0 1.9 120.9
2030 42.0 72.0 0.0 1.9 115.9
2035 42.0 57.9 0.0 1.9 101.8
2040 42.0 51.3 0.0 1.9 95.2
* Includes 20% INI Buffer and variances for pools and residential agriculture. State Water Board may elect to eliminate buffer once landscape measurements are updated by DWR. Outdoor budget calculated with 2020-21 avg Net ET. 178
17 Cal Water Rebates
Residential
• High-efficiency toilet
• High-efficiency clothes washer
• High-efficiency sprinkler nozzle
• Smart irrigation controller
• Lawn-to-garden
Commercial
• High-efficiency valve-type toilet
• High-efficiency tank-type toilet
• High-efficiency urinal
• High-efficiency sprinkler nozzle
• Spray body with integrated pressure
regulation and check valve
• Large rotary nozzle
• Smart irrigation controller
• Lawn-to-garden
• Customized incentive
179
18 Conservation Kits
– Each conservation kit contains:
• Two high-efficiency shower heads
• Leak detection tablets
• Two high-efficiency bathroom faucet
aerators
• One garden hose nozzle
• One high-efficiency kitchen faucet aerator
180
19 • Evaluation of irrigation system
• Identification and improvement of
irrigation leaks, broken equipment,
and other water-saving opportunities
• Installation of smart irrigation
controllers
• Installation of high-efficiency sprinkler
nozzles
• Repair of drip irrigation
• Repair and replacement of irrigation
valves
• Repair and replacement of spray
bodies
Smart Landscape Tune- Up Program
181
20 Lawn-to-Garden Rebate
• Lawn removal projects that transform
turf into water-wise gardens and
landscapes
• $3 per square foot for residential
customers
• $1 per square foot for commercial
customers
• Requires 50% of the converted area to
be drought tolerant, California native,
low water use plants
• A minimum of 250 square feet of lawn
must be removed
• Artificial/Synthetic Turf is not allowed
182
21 • Utilized optimization model to develop conservation program that maximizes water savings at lowest cost
• Annual program compliance cost estimate (excluding Performance Measures): $2,395,870 • Immediate ramp up of conservation programs balancing compliance, implementation feasibility, and affordability
• Limit annual increase to 5x current program budget
• Current authorized annual programs budget: $239,587
• Proposed annual programs budget: $1,197,935
• Includes additional marketing and staffing to support expanded programs • Proposed total annual conservation program budget for Visalia: $1,946,928 • Adaptive management approach to determine future program adjustments Compliance Plan – GRC
183
22 • Identifying grant programs to support program expansion • Program budget to be utilized primarily for residential programs • Expand activity in current programs with focus on outdoor programs • Assessing implementation of Bathroom Fixture Replacement Program • Targeted to multi-family residential and low-income customers • Assessing need and timing of increased incentive amounts • Assessing expansion of Flume program
Compliance Plan – Program Considerations
184
23 • Build on significant interest in Smart Landscape Tune-Up Program • Assessing maximum project square footage and developing additional support for Lawn-to- Garden Program
• Developing water targets to provide customer water-use insights and customized recommendations
Compliance Plan – Program Considerations
185
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.
186
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 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 Commented [KJ1]: May want to confirm if this is the
correct flow rate going forward.

Commented [KJ2]: State conservation framework
includes ½ acre as the definition. May want to confirm the correct definition for the purposes included in
ordinance.
187
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.

A. 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.
188
B. 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.

C. 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.

D. No watering during rain. Irrigation of ornamental landscape or other vegetated areas is prohibited during and within 48 hours of measureable rainfall.

E. 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.

F. 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.

G. Recirculating water required for water features. Operating a water feature that does not use recirculated water is prohibited.

H. 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.

I. 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.

J. Commercial lodging establishments must provide guests option to decline daily linen services. Hotels, motels and 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.

K. No installation of single pass cooling systems. Installation of single pass cooling systems is prohibited in new buildings.

Commented [KJ3]: May want to consider prohibiting
without the exception.

Commented [KJ4]: May want to consider extending to
5-7 days to allow for technical assistance. Shorter period can/should be used in higher stages.
189
L. 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.

M. 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.

O. 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.

Commented [KJ5]: Consider including expiration
similar to higher stages.
190
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 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.

Commented [KJ6]: Consider changing to match
language in higher stages.
191
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. 192

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 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 Commented [KJ7]: May want to expand to other
recreational uses such as water parks.
193
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.

Commented [KJ8]: Typo for correction
194

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.

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. Commented [KJ9]: May want to add language for facilities that recirculate water.
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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; Commented [KJ10]: May want to consider updating to
“city or city-approved”.
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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 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 197
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)
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Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 25-0090 Agenda Date: 5/19/2025 Agenda #: 1.

Agenda Item Wording:

Authorization to read ordinances by title only.

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Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 25-0072 Agenda Date: 5/19/2025 Agenda #: 2.

Agenda Item Wording:

Accept and Appropriate Grant Funding - Accept and appropriate $3,103,963 of Encampment Resolution Funding Round 3 Window 3 for operational and rapid rehousing funds for the Visalia Navigation Center on N. Court to provide interim shelter, and a combination of capital and operational funds for the Sequoia Village on S. Mooney to provide permanent supportive housing for people living in targeted encampments.

Deadline for Action: 5/19/2025
Submitting Department: Finance and Technology Services
Contact Name and Phone Number:

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

Staff recommends that Council:
· Accept and appropriate $3,103,963 in Encampment Resolution Funding (ERF), Round 3 Window 3 which was awarded on December 23, 2024. These funds will be used for operational and rapid rehousing funds for the Visalia Navigation Center in the amount of $1,603,963 million, and assistance for the Sequoia Village, a permanent supportive housing project, for capital and operational funds including rental subsidy gap funds and on-site case management for $1.5 million;
· Authorize the City Manager to execute the necessary grant agreements; and · Authorize the City Manager to enter into contracts with Community Services Employment Training (CSET) for $1.6 million for the Navigation Center, Mooney Sequoia LP for $644,400 for the Sequoia Village capital, and Elevate Community Services for $855,600 the Sequoia Village operational funds.

Summary:

The Encampment Resolution Funding (ERF) program is a competitive grant program through the California Department of Housing and Community Development (HCD) available to assist local jurisdictions to provide support to people experiencing homelessness in targeted encampments and place them into permanent housing. On December 23, 2024, the City was notified of an award of ERF Round 3 window 3 funds in the amount of $3,103,963. This staff report is to accept and appropriate $3,103,963 of ERF round 3 window 3 which includes $1.6 million for the Visalia Navigation Center for operational and rapid rehousing to provide interim housing, and $1.5 million for Sequoia Village for capital and operational funds to provide permanent supportive housing for people living in targeted encampments.

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File #: 25-0072 Agenda Date: 5/19/2025 Agenda #: 2.

Background Discussion:

The Encampment Resolution Funding (ERF) program is a competitive grant program through the California Department of Housing and Community Development (HCD) available to assist local jurisdictions to provide services and support to people experiencing homelessness in targeted encampments that results in meaningful paths to safe and stable housing. Eligible applicants include cities, counties, and Continuums of Care (CoCs). The Encampment Resolution Funding (ERF) Round 3 competitive Notice of Funding Availability (NOFA) included three windows to apply for funding. Since these statewide funds are highly competitive, the City applied to all three windows in hopes of being awarded at least once. Fortunately, the City of Visalia was awarded two out of three windows.

On December 4, 2023, Council approved an application for Encampment Resolution Funding (ERF), Round 3 funds to provide supporting both the Visalia Navigation Center, in partnership with Community Services Employment & Training (CSET) to provide interim shelter, and a Permanent Supportive Housing project, the Majestic Gardens to provide permanent housing for persons living in targeted encampments located on the Highway 198 and State Route 63 on N. Dinuba Blvd within the City of Visalia.

On September 27, 2024, the City was notified of an award of ERF Round 3 window 2 funds in the amount of $3,000,000. These ERF 3 window 2 funds included $1.5 million for the Visalia Navigation Center first year operational funds and rapid rehousing funds, and $1.5 million for the Majestic Garden project capital and operational funds for on-site staffing and rental subsidies.

On December 23, 2024, the City was notified of an award of ERF Round 3 window 3 funds in the amount of $3,103,963. Since the grant application for windows 2 and 3 were similar, HCD requested the city to provide a revised ERF-3 window 3 grant application with distinct goals and outcomes. As a result, the ERF 3 Window 3 grant application was revised to include $1.6 million for the Visalia Navigation Center second year operational funds, and rapid rehousing funds including rental subsidies, and $1.5 million for the Sequoia Village project that includes $644,400 for capital (CP0479) with Mooney Sequoia LP, and $855,600 for operational funding including on-site staffing and rental subsidies with Elevate Community Services as shown below in Table 1: ERF Round 3 Window 3 - Funding Summary. Appropriation of these funds is required to complete the budget process for the Visalia Navigation Center and Sequoia Village projects. This action will allow proper allocation of project expenses for this approved funding source.

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File #: 25-0072 Agenda Date: 5/19/2025 Agenda #: 2.

ERF Round 3 Window 3 Activities:
· The Visalia Navigation Center
o The Visalia Navigation Center ERF Round 3 funds will provide $1,603,963 to CSET, the on-site administrator, for the second year of operational and rapid rehousing funds for the Visalia Navigation Center. These funds will provide needed second year operational costs for the Visalia Navigation Center, including case management, housing navigators, and client meal assistance costs. The Visalia Navigation Center ERF Round 3 funds will also provide essential rapid rehousing funds including 12-months of rental subsidies to help new tenants secure a 1-year lease agreement. · Sequoia Village
o Capital (CP0479) - The Majestic Gardens ERF Round 3 funds will provide $644,400 to Mooney Sequoia LP for capital improvements needed including installation of a fence at the property, and security cameras to ensure safety of residents and the surrounding area. Capital improvements also include floor repairs, painting, railing repaint, plumbing fixture repairs, asphalt repairs, landscaping, laundry room rehabilitation, and rehabilitation of 12-units.
o Operational - The Sequoia Village ERF Round 3 Window 3 funds will also provide $855,600 to Elevate Community Services, the non-profit operating partner, for two- years of operational funds for the Sequoia Village project. These funds will also provide two-years of rental subsidies for 19 units at Sequoia Village. These funds will include on -site enhanced case management and security services to ensure clients are transitioning into permanent housing smoothly, and safely.

Fiscal Impact:

Approval of this item will appropriate $3,103,963 in Encampment Resolution Funding (ERF), Round 3 window 3 funds that includes $1,603,963 for operational funds for the Visalia Navigation Center, $644,400 for capital development (CP0479), and $855,600 for operational funds for the Sequoia Village project, as shown above in Table 1: ERF Round 3 Window 3 - Funding Summary. No General Fund money is included or requested for this grant.

Prior Council Action: December 4, 2023 (23-0424) - Council approved and ERF, Round 3 application to be split between the Visalia Navigation Center and a permanent supportive housing project to provide interim shelter and permanent housing respectively to persons living in targeted encampments with the City of Visalia.

Other: None.

Alternatives: None recommended.

Recommended Motion (and Alternative Motions if expected):

I move that Council:
· Accept and appropriate $3,103,963 in Encampment Resolution Funding for the Visalia Navigation Center in the amount of $1,603,963 million, and assistance for the Sequoia Village for $1.5 million;
· Authorize the City Manager to execute the necessary grant agreements; and · Authorize the City Manager to enter into contracts with Community Services Employment Visalia City Council Printed on 5/14/2025Page 3 of 4
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File #: 25-0072 Agenda Date: 5/19/2025 Agenda #: 2.

Training (CSET) for $1.6 million for the Navigation Center, Mooney Sequoia LP for $644,400 for the Sequoia Village capital, and Elevate Community Services for $855,600 the Sequoia Village operational funding.

Environmental Assessment Status: N/A
CEQA Review: N/A
Attachments:
● Attachment A - ERF Round 3 Window 3 Award Letter
● Attachment B - Draft CSET Contract Agreement
● Attachment C - Draft Mooney Sequoia LP Contract Agreement ● Attachment D - Draft Elevate Community Services Contract Agreement Visalia City Council Printed on 5/14/2025Page 4 of 4
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STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor

DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT

DIVISION OF HOUSING POLICY DEVELOPMENT
651 Bannon Street
Sacramento, CA 95811
(916) 263-2911 / FAX (916) 263-7453
www.hcd.ca.gov

December 23, 2024

Renee Nagel
City of Visalia
City of Visalia
707 W. Acequia Avenue
Visalia, CA 93291

RE: ERF Award Announcement – City of Visalia
#24-ERF-4-L-10017 Award Amount: $3,103,963.00

Dear Renee Nagel:

This award information is under embargo from public announcement until otherwise notified by Department of Housing and Community Development (HCD) staff.

Award
recipients are precluded from making any form of public announcements or discussing publicly. HCD will prepare a public announcement; the timing for the announcement is not yet set.

HCD is pleased to announce that the City of Visalia has been awarded an Encampment Resolution Funding (ERF-4-L) award for their application received under ERF Round 3 Rolling, Window 3 in the amount of $3,103,963.00.

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

HCD intends to issue a Standard Agreement within 90 days of receipt of the documentation required to execute this contract. A program representative will be in communication with you to discuss and confirm any documents needed.

Congratulations on your successful application. For further information, please contact Jeannie McKendry at [email protected] or [email protected].

Sincerely,

Megan Kirkeby
Deputy Director, Housing Policy Development Division

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1 ENCAMPMENT RESOLUTION FUNDING ROUND 3 WINDOW 3

AGREEMENT BETWEEN THE CITY OF VISALIA AND
COMMUNITY SERVICES EMPLOYMENT AND TRAINING, INC.

THIS AGREEMENT (the “Agreement”) is made this __ day of _______, 2025, (the “Effective Date”) by and between COMMUNITY SERVICES and EMPLOYMENT TRAINING, INC., a private, non-profit community-based organization (hereinafter “CSET”), and the CITY OF VISALIA, a Charter Law city of the State of California (the “City”). The City and CSET may be referred to collectively herein as the “Parties” or individually as a “Party.”

RECITALS

A. These Recitals are a material part of the Agreement and incorporated in the substantive and binding terms of the Agreement as if fully set forth therein.

B. The Encampment Resolution Funding (ERF) Program provides funding for person-centered projects that resolve unsheltered homelessness in encampments. ERF projects should address safety and wellness in encampments, resolve critical encampment concerns, and transition people into interim shelter or permanent housing. ERF projects should strengthen existing, successful models and/or support new approaches that provide safe, stable, and permanent housing for people in encampments. ERF funds may only be used for projects that connect people experiencing homelessness in encampments to interim shelter with clear pathways to permanent housing or place people directly into permanent housing to be used in accordance with applicable provisions under the authority of Chapter 7 of Part 1 of Division 31 of the California Health and Safety Code (HSC) (sections 50250 et seq.), the Encampment Resolution Funding Program (Program) was established to increase collaboration between the California Interagency Council on Homelessness (Cal ICH) local jurisdictions, and Continuums of Care.

C. On December 4, 2023, City Council authorized staff to apply for Encampment Resolution Funding Program, Round 3 (ERF-3-R WINDOW 3) for the first-year operation funds and rapid rehousing funds for the Visalia Navigation Center to provide interim shelter with pathways to permanent housing placement for persons living in targeted encampments within the City of Visalia. On September 27, 2024, the City of Visalia was awarded One Million, Six- Hundred Three Thousand, and Nine Hundred Sixty Three Dollars and 00/100 ($1,603,963.00) in ERF-3-R Window 3 funds for the Visalia Navigation Center, a Low-Barrier Navigation Center which includes Six-Hundred Twenty-Eight Thousand, and Nine Hundred Sixty Three Dollars ($628,963) for second-year operational funds, and Nine-Hundred Seventy- Five Thousand Dollars ($975,000) for rapid rehousing funds including 12-month rental subsidies for persons living in targeted encampments within the City of Visalia. Target encampments are identified in Exhibit C - Targeted Visalia Encampments.

D. CSET desires to operate a Low-Barrier Navigation Center for people experiencing homelessness, located at 3525 N. Court Street, Visalia, CA 93291, and more particularly described and identified in Exhibit A - Project Approach, attached hereto and incorporated herein 205

2 (the “Project”). Said Project will be committed to “Limited Clientele”, strictly to only those who are homeless, in accordance with 24 CFR 91.5 as set forth herein (the “Project”).

E. The Property is within the jurisdictional boundaries of the City. The operation of the Project will be accomplished using Encampment Resolution Funding (ERF), Permanent Local Housing Allocation (PLHA), Successor Agency Housing (SAH) funds, and other non-city funding sources.

F. The City is vested with the authority to use ERF, PLHA, and SAH funding for a variety of purposes, including providing funding to a community-based non-profit for operation of a public facility to be operated by a non-profit as a Low-Barrier Navigation Center for people experiencing homelessness. The project will utilize a Housing First, Low-Barrier Shelter Approach, which endeavors to quickly connect individuals and families experiencing homelessness to permanent housing without preconditions and barriers to entry.

G. The Project was constructed in all material respects in accordance with applicable zoning, building, housing and other codes, ordinances, and regulations consistent with the construction, and operation of a public facility on the Property.

H. CSET will own the public facility located in the City of Visalia at 3525 North Court Street, Visalia, CA, 93291 and lease the land from the owner Self-Help Enterprises (SHE).

The owner’s consent will be memorialized through a Memorandum of Lease between CSET and SHE.

NOW, THEREFORE, in consideration of the mutual covenants contained herein, and subject to the terms and conditions hereinafter stated, CSET and City agree as follows:

I. PROJECT DETAILS.

A. CSET agrees to utilize the funding providing through this Agreement for purposes of operation of the Project. The Property shall be owned and operated by CSET to operate the facility (Visalia Navigation Center) as the lead organization and project manager. Subject to the specific terms and conditions contained herein, the following documents contain the general understanding of the parties with regards to the City’s funding for CSET’s operation of the Project: “Project Detail” provided by CSET to the City, which shall be incorporated herein as Exhibit A – Project Approach; (2) “Project Budget” spreadsheet provided by CSET, which shall be incorporated herein as Exhibit B – Project Budget.

B. As consideration for CSET’s obligations hereunder, the City shall provide ERF-3- R WINDOW 3 funds in the amount not to exceed One Million, Six-Hundred Three Thousand, and Nine Hundred Sixty Three Dollars and 00/100 ($1,603,963.00), for the period of May 1, 2025, through June 30, 2028, to assist CSET with operational costs and rapid rehousing funds of the Visalia Navigation Center.

C. CSET shall assist City in compliance with the requirements of the ERF program under the authority of Chapter 7 of Part 1 of Division 31 of the California Health and Safety Code (HSC) (sections 50250 et seq.), the Encampment Resolution Funding Program was established to increase collaboration between the California Interagency Council on 206

3 Homelessness (Cal ICH), Local Jurisdictions, and Continuums of Care for the following purposes:

1. Assist Local Jurisdictions in ensuring the safety and wellness of people experiencing homelessness in encampments.

2. Provide grants to Local Jurisdictions and continuums of care to resolve critical encampment concerns and transition individuals into safe and stable housing.

3. Encourage a data-informed, coordinated approach to address encampment concerns.

CSET also agrees to comply with all other applicable State, and local laws, regulations, and policies governing the funds provided under this Agreement. The Subrecipient further agrees to utilize funds available under this Agreement to supplement rather than supplant funds otherwise available.

II. GRANT COMPLIANCE.

A. Restrictions Requirements. CSET agrees that the Project shall be used as Low- Barrier Navigation Center, benefitting clientele - who are homeless and priority entry to those residing in targeted Visalia encampments, and following the “Housing First” approach and resulting in successful exits to permanent housing as per the requirements of ERF funds. All benefiting clients must be considered qualified persons ("Qualified Person”).

B. Qualified Person Certification. A Qualified Person is a person experiencing homelessness in accordance with the McKinney Act definition at 24 CFR 91.5. Annually during the affordability period for the Project, CSET must certify in writing to the City with appropriate supporting documentation that the Use Restriction Requirements required by this Section have been completed in accordance with ERF and City requirements.

C. Maintenance of the Project. CSET shall maintain the Project in accordance with the customs and practice generally applicable to public facilities in the City of Visalia. Said maintenance shall include, but not be limited to, the building, sidewalks, lighting, landscaping, irrigation of landscaping, and any and all other improvements on the Property.

D. Resident Conduct. CSET, its successors and assigns shall ensure that any Qualified Person residing at the Project conduct themselves in accordance with the following standards:
i. Standards of aesthetics for residents regarding use and condition of the exterior amenities of the Facility, including patios and entryways. ii. Noise standards that comply with City requirements and limits. iii. Rules related to open/recreational areas that address, at a minimum, alcoholic beverage use, and public nuisance activities. iv. Parking prohibition of inoperative vehicles, boats, trucks of one-ton capacity and over, trailers and/or recreational vehicles within the complex. 207

4 v. Standards of behavior for residents that could lead to eviction.

E. Maintenance and Operations. CSET agrees to serve as the Property manager/Project operator for the Project. CSET shall obtain City’s approval, which shall not be unreasonably withheld, if CSET arranges for a third party to serve as the Property manager/Project operator. CSET and its agents or assigns will comply with or otherwise implement the following Property management/Project operation activities:
i. CSET shall comply with all development standards, city codes, and ordinances. Buildings and premises, including paint/siding, roofs, windows, fences, parking lots, landscaping, and electrical systems shall be kept in good repair. Premises shall be kept free of junk and debris.
ii. CSET shall provide a regular program for the control of infestation by insects, rodents, and other pests.
iii. Where conditions are attributable to normal wear and tear, CSET shall make repairs and arrangements necessary to put and keep the premises in as good condition as required by law.
iv. CSET shall maintain all electrical, plumbing, heating, and other facilities in good working order.
v. CSET shall maintain the Public Facility in reasonably weather tight condition and good exterior appearance.
vi. CSET shall remove graffiti within forty-eight (48) hours of it having been observed and/or reported.
vii. CSET shall provide overnight access for the Visalia Police Department to CSET’s maintenance and management staff in person, by telephone, or email. Such numbers shall be provided to the Visalia Police Department dispatch center and updated promptly as changed.
viii. CSET shall establish and conduct a regular program of routine maintenance for the facility. Such program shall include, but not necessarily be limited to, regular inspections of common areas, restrooms, and other similar activities that typically require attention at periodic intervals, but not necessarily continuously. ix. The name and phone number of CSET or CSET’s contracted Property management/Project operator shall be posted in a prominent location at the front of the property.
x. CSET shall maintain decorative planting in a manner that does not obstruct or diminish lighting and visibility throughout the complex and common areas. xi. CSET shall manage the complex in a manner that does not permit inoperative vehicles, boats, trucks (one-ton capacity and over), trailers and/or recreational vehicles to be parked in the facility.

III. REPORTING COMPLIANCE
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5 A. Reporting Compliance. CSET shall be responsible for Homeless Management Information System (HMIS) data entry and reporting to the City, Cal ICH, and California Department of Housing and Community Development (HCD) for all ERF-3-R WINDOW 3 targeted encampment clients. CSET shall submit such reports as are required by the City to meet its local obligations and its obligations to Cal ICH, and HCD. Pursuant to HSC §50254 and WIC §8256, ERF-3-R WINDOW 3 grantees are required to enter specified data elements on the individuals and families served into their local HMIS. CSET must follow the entry format specified by Cal ICH and/or HCD, which includes the use of funding codes (Other Funder Code and Grant ID) as described in the AB 977 HMIS Project Setup Instructions. Required reports include, but are not limited to the following:

ERF-3-R WINDOW 3 Subrecipient Requirements
Report Frequency Data Points
ERF-3-R Window 3
Quarterly Report
Quarterly • ERF-3-R Window 3 Quarterly Performance Report • Quarterly narrative and HMIS performance report.

Annual Report
Upon Project
Development
Annual • Annual Client Performance Tracker Report - Beneficiary data (direct client services) - demographics and income.

Final Report End of project • Major milestones (final performance report) • Goal comparison and analysis
• Leveraged funds
• Financial report
• Total cost and share that is ERF
Reimbursement
Requests
Monthly • Expenditures
• Timeliness
• Invoice
• General Ledger of Expenditures
• Source Expenditure Documents (i.e., receipts or invoices)

IV. DEFAULT AND REMEDIES
A. Failure to Perform. Failure by CSET to duly perform, comply with, or observe any of the conditions, terms, or covenants of this Agreement shall constitute a breach of this Agreement, such failure having continued uncured for thirty (30) days after receipt of written notice thereof by CSET from City. Alternatively, if the breach cannot reasonably be cured within thirty (30) days, CSET shall not be in breach so long as CSET is diligently undertaking to cure such breach and such breach is cured within ninety (90) days.

B. Notice of Default and Opportunity to Cure. For any breach of this Agreement, City shall give written notice to CSET of any breach of the Agreement by specifying:
i. The nature of the event or deficiency giving rise to the breach of the Agreement.
209

6 ii. A date, which shall not be less than thirty (30) calendar days from the date of receipt of the notice, by which such action to cure must be taken. The City has the sole discretion to determine whatever additional reasonable time, up to ninety (90) days, is needed to cure.

C. Remedies. Upon the occurrence of a breach of the Agreement, and a failure to cure said breach within the time specified, the City's obligation to disburse funds shall terminate, and City may also, in addition to other rights and remedies permitted by the Agreement or applicable law, proceed with any or all of the following remedies in any order or combination City may choose in its sole discretion:
i. Terminate this Agreement, in which event City funds previously disbursed shall become due and payable within thirty (30) days, including any loan payments that may have otherwise been forgiven pursuant to Section I(C) herein. ii. Bring an action in equitable relief seeking the specific performance by Borrower of the terms and conditions of this Agreement, and/or enjoining, abating, or preventing any violation of said terms and conditions, and/or seeking declaratory relief. iii. Pursue any other remedy allowed by law or in equity.

D. Hardship Exemption. If CSET cannot comply with the requirements of this Agreement for any reason, CSET may request City to alter CSET’s obligations hereunder on terms acceptable to City, but no such request may be made later than thirty (30) days after City has delivered to CSET notice of a breach or violation of this Agreement. CSET must deliver the request in writing to City. The request must set out the reasons why CSET cannot comply with this Agreement and must describe any hardship to CSET that compliance would cause. City is under no obligation to grant any relief and may proceed with its remedies under this Section III, at law and in equity, despite CSET’s request or the hardship involved. The relief, if any, is to be determined by City in its sole discretion.

E. Right of Contest. CSET shall have the right to contest in good faith any claim, demand, levy, or assessment, the assertion of which would constitute a breach of the Declaration hereunder. Any such contest shall be prosecuted diligently and, in a manner, non-prejudicial to City or the rights of City hereunder.

F. Remedies Cumulative. No right, power, or remedy given to City by the terms of this Agreement is intended to be exclusive of any other right, power, or remedy; and each and every such right, power, or remedy shall be cumulative and in addition to every other right, power, or remedy given to City by the terms of any such instrument, or by any statute or otherwise against CSET and any other person. Neither the failure nor any delay on the part of City to exercise any such rights and remedies shall operate as a waiver of such right or remedy, nor shall any single or partial exercise by City of any such right or remedy preclude any other or further exercise of such right or remedy, or any other right or remedy.

V. GENERAL PROVISIONS
A. Notices, Demands and Communications between the Parties. Any approval, disapproval, demand, document or other notice ("Notice") which any party may desire to give to the other parties under this Agreement must be in writing and may be given by any commercially 210

7 acceptable means, including, but not limited to email and/or via overnight courier, to the party to whom the Notice is directed at the address of the Party as set forth below, or at any other address as that Party may later designate by Notice.

To City: City of Visalia, Finance Department
Attention: Housing Division
707 W. Acequia Avenue
Visalia, CA 93291
(559) 713-4460
[email protected]

To CSET: Community Services & Employment Training, Inc.

Attention: Mary Alice Escarsega-Fechner
312 NW 3rd Avenue
Visalia, CA 93291
[email protected]

Any Notice shall be deemed received immediately if delivered by hand, on the third day from the date it is postmarked if delivered by first-class mail, postage prepaid, upon receipt of verification of receipt if sent via email, and on the next business day if sent via nationally recognized overnight courier. Notices sent by a Party's attorney on behalf of such Party shall be deemed delivered by such Party.

B. Compliance with Chapter 7 of Part 1 of Division 31 of the California Health and Safety Code (HSC) (sections 50250 et seq.), for the Encampment Resolution Funding Program.

C. Records Maintenance. CSET shall retain all records pertinent to the Project and activities and expenditures incurred under this Agreement for a period of five (5) years after the termination of all activities funded under this Agreement or after the resolution of all State audit findings, whichever occurs later. CSET shall maintain data documenting resident eligibility for housing and/or services provided. Such data shall include, but not be limited to, resident name, address, income level, ethnicity, and description of housing and/or services provided. Reporting to City by CSET of compliance with this provision shall be accomplished by delivering the initial “Income Certification” application/form which shall be provided to CSET by the City.

Thereafter, ongoing monitoring shall also include submission of annual audits, review of partner agreements, review of cash flows, reserves and capital improvements as requested by City. In addition, CSET shall, if requested by City, provide to City a report or any other documentation relative to partnerships agreements, operational statements, including cash flow, reserves and capital improvements, occupancy, Resident composition, and such other matters as City shall reasonably request to ensure compliance.

D. Assignment, Transfers and Successors. For purposes of this Agreement, "Transfer" shall mean any sale, assignment, or transfer, whether voluntary or involuntary, of any rights and/or duties under this Agreement, and/or any interest in the Project or the Property, including, but not limited to, a fee simple interest, a joint tenancy interest, a partnership interest, 211

8 a leasehold interest, a security interest, or an interest evidenced by a contract by which possession of the Project is transferred.
i. No Transfer shall be permitted without the prior written consent of the City.
ii. The approval of transfers by CSET to another legal entity wholly controlled and managed by CSET shall be permitted by the City and approval of said transfer shall not be reasonably withheld.

F. Severability. In the event any term or provision of this Agreement is deemed to be in violation of law, null and void, or otherwise of no force or effect, the remaining terms and provisions of this Agreement shall remain in full force and effect.

G. Parties Not Co-Venturers. Nothing in this Agreement is intended to, or does, establish the City and CSET as partners, co-venturers or principal and agent with one another.

H. Warranties. City expresses no warranty or representation to CSET as to fitness or condition of the Property or the Project, other than those specifically contained in the Purchase and sale Agreement between the Parties.

I. Attorney’s Fees. In the event any legal action is commenced to interpret or to enforce the terms of this Agreement or to collect damages as a result of any breach thereof, the party prevailing in any such action shall be entitled to recover against the party not prevailing, its reasonable attorney’s fees and costs incurred in such action.

K. Indemnification Regarding Project. CSET agrees to indemnify, protect, hold harmless and defend (by counsel reasonably satisfactory to City) the City, and its respective Council members, officers and employees from all liability arising out of the Project, the Property, and CSET’s operation of the Project, to the extent that such liability arises from the acts or omissions of CSET, its subcontractors or guests. This provision shall survive expiration and/or termination of this Agreement.

L. Governing Law. This Agreement shall be interpreted under the laws of the State of California.

212

9 IN WITNESS WHEREOF, Purchaser has executed this Agreement, effective the day and year first set forth above.

COMMUNITY SERVICES and EMPLOYMENT
TRAINING, INC. (CSET)

Dated: _____________________ By:________________________________

Its: Mary Alice Escarsega-Fechner,
Executive Director

CITY OF VISALIA

Dated: ______________________ By: _____________________________

Its: Leslie Caviglia, City Manager

APPROVED AS TO FORM

By: ____________________________
City Attorney

213

10 Exhibit A - Project Approach

The Visalia Navigation Center is a 100-bed low-barrier navigation center for individuals experiencing homelessness with clear pathways to permanent housing placement. The Visalia Navigation Center will provide a one-stop center for immediate shelter, essential services, and direct placement into permanent housing for people experiencing homelessness. The Visalia Navigation is located at 3525 N. Court St., Visalia. This approximately 20,000 sq. ft. public facility will accommodate 100-beds, offices space, two dormitory-type spaces, one for men and one for women, 10 private rooms for families with children, commercial kitchen, dining room, large common area, and laundry room. Exterior amenities will include a playground area, courtyard, and animal kennels. To ensure the Visalia Navigation Center clients gain stability and successfully transition to permanent housing, each client will be assigned a trauma informed care trained case manager, and all staff and volunteers will be trained to provide trauma informed care and harm reduction.

CSET will provide Visalia Navigation Center residents with case management services that are aimed at assisting residents in successfully transitioning from homelessness into permanent housing. Case Management services will be focused on completing required tasks to secure permanent housing. Additional services will be available to assist in linking residents to community services for mental health or substance abuse treatment, social service assistance, education or vocation support, and life skills. CSET will serve as the liaison with the Kings/Tulare Homeless Alliance (Alliance) to accept referrals from Coordinated Entry System (CES) and coordinate with other service providers. In addition to the housing and supportive services provided, CSET will serve daily meals to residents out of the onsite commercial kitchen.

Progress will be measured by the number of homeless placed in permanent housing, and the numbers of homeless remaining in the targeted encampments. The Visalia Navigation Center will use the Vulnerability Index-Service Prioritization Decision Tool (VI-SPDAT). The local Continuum of Care (CoC) will use the Homeless Management Information System (HMIS) to refer individuals from the CES to the appropriate program, with priority given to residents of the targeted Visalia encampments.

The Visalia Navigation Center will complete monthly progress reports including narratives and statistics of unduplicated individuals assisted, demographics, race, ethnicity, all services provided, and the number of VI-SPDAT assessments, new HMIS clients, job trainings/placements, and permanent housing placements.

Outcomes:
• Facilitate a minimum of 200 interim and 100 permanent housing exits in the first year. • Secure and sustain exits to permanent housing for 50 people per year with a recidivism rate of less than 10% per year.

214

11 Exhibit B - Project Budget

215

12 Exhibit C – Targeted Visalia Encampments

Encampment Resolution Funding Round 3

1. State Hwy 198 Ben Maddox on ramp and State Hwy 198 between Burke Street and Santa Fe Street (4,031 ft), and the Demaree on ramp (785 ft).

216

13 2. State Route 63 at Riverway Sports Park, N. Dinuba Blvd between West Riggin Avenue and East Houston Avenue, and Lincoln Oval Park.

217

1 DRAFT ENCAMPMENT RESOLUTION FUNDING AGREEMENT BETWEEN THE

CITY OF VISALIA AND MOONEY SEQUOIA LP
THIS AGREEMENT ("Agreement") dated as of __________, 2025, is entered into by and between the CITY OF VISALIA, a Charter Law city of the State of California ("City"), and MOONEY SEQUOIA, LP, a California limited partnership (hereinafter “Owner”).

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

A. Owner desires to develop a 50-unit multi-family affordable housing project, located at 1400 S. Mooney Blvd. in the City of Visalia, and more particularly described and identified in "Exhibit A," attached hereto and incorporated herein (the "Property"); and

B. Owner is a California Limited Partnership (general partners include RHCB Visalia LLC, HOM XXXIV LLC, and UP Visalia LLC) that, among other things, rehabilitates and develops affordable housing projects that, upon completion, are typically managed by RH Community Builders LP (RHCB) and its affiliates; and

C. The Encampment Resolution Funding (ERF) Program provides funding for person-centered projects that resolve unsheltered homelessness in encampments. ERF projects should address safety and wellness in encampments, resolve critical encampment concerns, and transition people into interim shelter or permanent housing. ERF projects should strengthen existing, successful models and/or support new approaches that provide safe, stable, and permanent housing for people in encampments. ERF funds may only be used for projects that connect people experiencing homelessness in encampments to interim shelter with clear pathways to permanent housing or place people directly into permanent housing to be used in accordance with applicable provisions under the authority of Chapter 7 of Part 1 of Division 31 of the California Health and Safety Code (HSC) (sections 50250 et seq.), the Encampment Resolution Funding Program (Program) was established to increase collaboration between the California Interagency Council on Homelessness (Cal ICH) local jurisdictions, and Continuums of Care; and
D. Owner proposes to develop a multifamily affordable housing complex with 50 units, composed of one manager’s unit and 41 units committed to “Limited Clientele”, strictly to only those who are homeless with priority entry for those currently residing in targeted encampments, target encampments are identified in Exhibit C – Targeted Visalia Encampments in accordance with EFR-3-R regulations as set forth herein (the “Project”) and the terms and conditions set forth herein, so that the Property will be utilized for affordable housing for the longest feasible period; and

E. City and Owner desire to enter into this Agreement to set the terms and conditions under which City can loan to Owner a portion of the City's available Encampment Resolution Funding Round 3 (ERF-3-R) for the Project.

NOW, THEREFORE, City and Owner hereby agree as follows:
218

2 1. CITY LOAN
a. Loan Terms. In consideration of Owner’s obligations hereunder, and to ensure the Project remains affordable in accordance with the Rental Restriction (provided for under Section 3 hereof), and subject to the terms and conditions of this Agreement, the City will provide financial assistance to Owner for the Project in an amount up to Six Hundred and Forty-Four Thousand, and Four Hundred Dollars ($644,400.00) in ERF-3-R funds to assist in acquisition and construction of the Project. As evidence of the City Loan, Owner shall execute and deliver a promissory note to City in the form acceptable to City, which Note shall be in the initial principal amount of the City Loan. The Note shall be secured by a standard form Deed of Trust from a title company acceptable to the City, to be recorded against the Property.

b. Disbursement of City Loan. City shall provide to Owner up to Six Hundred and Forty-Four Thousand, and Four Hundred Dollars ($644,400.00) in ERF-3-R funds for the actual cost of acquisition and construction of the Project. Funding shall be disbursed on a reimbursement basis for Project costs actually incurred. Owner shall submit invoices, as well as any other documentation required by the City necessary to support reimbursement for Project expenditures.
c. Requirements of Owner The City loan shall be an annual forgivable loan used for acquisition and construction of the dwelling units on the Property in substantial conformance with the line items identified in the “Project Budget,” attached hereto as Exhibit “B-1” and Loan Forgiveness” attached hereto as Exhibit “B-2” incorporated herein by this reference. The City loan shall be a for a term of fifty-five (55) years from final disbursement of loan proceeds, and shall be a an annual forgivable, zero interest, principal only loan, by Owner and its successors and assigns, in accord with the terms and conditions contained in this Agreement, and in the Note and the amortization schedule attached thereto. Should Owner, its successors, or assigns sell the Property or fail to satisfy any of the terms and conditions herein, and as stated in the Rental Restriction required in Section 3, which are not otherwise waived by the City or otherwise cured by Owner, Owner shall be obligated to repay the City Loan in full within 30 days of written notification by the City.
i. Subject to the expiration of any applicable cure period, Owner shall not be in default of any of its obligations under the terms of this Agreement. ii. Recordation of Resale Restriction. Prior to the initial disbursement of funds from City to Owner, Owner shall execute and record the Rental Restriction required herein.
iii. Within 30 days of the execution of this Agreement, Owner shall have furnished City with evidence of the insurance coverage required under Section 2.

iv. Owner shall assist City with and shall provide all documentation necessary for all reporting requirements and obligations required by the State and local law.

2. DEVELOPMENT OF THE PROPERTY
219

3 a. Scope of Development. Owner shall acquire all of the parcels comprising the Property, and shall develop a 50-unit multifamily affordable housing complex, that will be committed to multifamily affordable housing on the Property in accordance with the Project Plans, Schedule and Budget attached hereto as "Exhibit B."

b. Insurance and Indemnification. Owner shall at all times cause the Project to be insured against loss by fire, flood, and such other hazards, casualties, liabilities and contingencies, in an amount not less than the full insurable value of the Project on a replacement cost basis and shall furnish or cause to be furnished to the City evidence satisfactory to City that Owner and any contractor with whom it has contracted for the performance of work on the Property or otherwise pursuant to this Agreement carries workers' compensation insurance as required by law. All insurance policies and renewals thereof shall be issued by a carrier and in a form acceptable to the City. Property insurance policies shall name the City as an additional insured, as approved by the City.

Owner and its successors in interest agree to indemnify, defend, and hold harmless the City and its agents, employees, volunteers and officers from any and all claims, losses, liabilities or causes of action (including reasonable attorney's fees) arising from or in connection with Owner's development, management, maintenance or operation of the Project; provided, however, Owner's obligations to indemnify and hold harmless shall not apply in the event and to the extent of the City's willful misconduct or gross negligence.

c. City and Other Governmental Agency Permits Owner shall secure and maintain, or cause to be secured and maintained, any and all permits or entitlements that may be required by City or any other governmental agency affected, or which has jurisdiction over the construction of the Project.
d. Antidiscrimination during Construction. Owner, for itself, and its successors and assigns, agrees that in the construction of Project on the property, Owner shall not discriminate against any employee or applicant for employment because of race, color, creed, religion, sex, marital status, ancestry, or national origin. e. Compliance with Laws. Owner shall carry out the construction and development of the Project in conformity with all applicable laws; City zoning and development standards; building, plumbing, mechanical and electrical codes; all other provisions of the City's Municipal Code; and all applicable disabled and handicapped access requirements, including the Americans With Disabilities Act, 42 U.S.C. Section 12101, et seq., Government Code Section 4450, et seq., Government Code Section 7260, et seq., Government Code Section 11135, et seq., and the Unruh Civil Rights Act, Civil Code Section 51, et seq.
f. Prevailing Wages. To the extent applicable, Owner shall comply with all requirements of the Department of Industrial Relations in accordance with the California Labor Code, and all other applicable federal, state, and local laws and regulations pertaining to labor standards and payment of prevailing wages (collectively, "Prevailing Wage Laws"). As applicable, Owner shall (i) require its contractors and subcontractors to submit certified copies of payroll records to Owner; (ii) maintain complete copies of such certified payroll records; and (iii) 220

4 make such records available to City and its designees for inspection and copying during regular business hours at the Property or at another location within the City of Visalia.

Owner shall defend, indemnify and hold harmless City and its officers, employees, volunteers, agents and representatives from and against any and all present and future causes of action, claims, liabilities, obligations, damages, fines, penalties, judgments, actions or expenses (including attorney fees) (collectively, the "Claims"), arising out of or in any way connected with Owner’s obligation to comply with all governmental requirements, including all Claims that may be made by contractors, subcontractors or other third party claimants pursuant to Labor Code Sections 1726 and 1781, as amended and added by Senate Bill 966.

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

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

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE

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

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

MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE
DEBTOR.

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

Owner agrees to indemnify, defend and hold City, City and their officers, employees, volunteers, agents and representatives harmless from and against any and all Claims, resulting from, arising out of, or based upon (i) the presence, release, use, generation, discharge, storage or 221

5 disposal of any Hazardous Materials on, under, in or about, or the transportation of any such Hazardous Materials to or from, the Property, or (ii) the violation, or alleged violation, of any statute, ordinance, order, rule, regulation, permit, judgment or license relating to the use, generation, release, discharge, storage, disposal or transportation of Hazardous Materials on, under, in or about, to or from, the Property, caused by Owner or any of Mooney Sequoia's predecessors in interest. This indemnity shall include any damage, liability, fine, penalty, parallel indemnity, cost, or expense arising from or out of any claim, action, suit or proceeding for bodily injury (including sickness, disease or death), tangible or intangible property damage, compensation for lost wages, business income, profits or other economic or consequential loss, damage to the natural resource or the environment, nuisance, contamination, leak, spill, release or other adverse effects on the environment but shall exclude any claims resulting from the gross negligence and/or willful misconduct of the City.

"Hazardous Materials" means any substance, material, or waste which is or becomes regulated by any local governmental authority, the State of California, or the United States Government, including, but not limited to, any material or substance which is: (i) defined as a "hazardous waste," "extremely hazardous waste," or "restricted hazardous waste" under Sections 25115, 25117 or 25122.7, or listed pursuant to Section 25140 of the California Health and Safety Code, Division 20, Chapter 6.5 (Hazardous Waste Control Law); (ii) defined as a "hazardous substance" under Section 25316 of the California Health and Safety Code, Division 20, Chapter

6.8 (Carpenter-Presley-Tanner Hazardous Substance Account Act); (iii) defined as a "hazardous material," "hazardous substance," or "hazardous waste" under Section 25501 of the California Health and Safety Code, Division 20, Chapter 6.95 (Hazardous Materials Release Response Plans and Inventory); (iv) defined as a "hazardous substance" under Section 25281 of the California Health and Safety Code, Division 20, Chapter 6.7 (Underground Storage of Hazardous Substances); (v) petroleum; (vi) friable asbestos; (vii) polychlorinated biphenyls; (viii) listed under Article 9 or defined as "hazardous" or "extremely hazardous" pursuant to Article 11 of Title 22 of the California Administrative Code, Division 4, Chapter 20; (ix) designated as "hazardous substances" pursuant to Section 311 of the Clean Water Act (33 U.S.C. §1317); (x) defined as a "hazardous waste" pursuant to Section 1004 of the Resource Conservation and Recovery Act, 42 U.S.C. §6901, et seq. (42 U.S.C. §6903); or (xi) defined as "hazardous substances" pursuant to Section 101 of the Comprehensive Environmental Response, Compensation, and Liability Act, 42 U.S.C. §9601, et seq., as the foregoing statutes and regulations now exist or may hereafter be amended. Hazardous Materials excludes any materials that are used in the ordinary, customary, and lawful cleaning of and business operations on the Property. Said permitted Hazardous Materials shall be stored in a suitable, safe location and shall be disposed of in a manner provided by law.

3. COVENANTS, RESTRICTIONS AND AGREEMENTS
a. Use Covenants; Rental Restrictions. Owner covenants and agrees for itself, its successors, its assigns and every successor in interest that, the Property shall be used for affordable housing purposes and that the Project to be constructed on the Property shall be rented to qualified low-income households ("Qualified Household"), in accordance with the terms of the Rental Restriction Agreement to be provided by City (the "Rental Restriction"). The foregoing covenant shall run with the land. Failure to maintain the use of the Property and the Project in accordance with this Section shall be a material default of this Agreement. 222

6 b. Maintenance Covenants. Owner shall maintain the Project in accordance with the custom and practice generally applicable to multifamily residential units in the City of Visalia, the Project and associated landscaping on the Property. Said maintenance shall include, but not be limited to, the building, sidewalks, lighting, landscaping, irrigation of landscaping, and any and all other improvements on the Property. Residential illegal activity will not be tolerated, and Owner and its successors must enforce property standards and implement eviction when necessary. Owner agrees to serve as the Property manager/Project operator for the Project.

Owner shall obtain City’s approval, which shall not be unreasonably withheld, if Owner arranges for a third party to serve as the Property manager/Project operator. Owner and its agents or assigns will comply with or otherwise implement the following Property management/Project operation activities:
i. Owner shall comply with all development standards, city codes, and ordinances. Buildings and premises, including paint/siding, roofs, windows, fences, parking lots, landscaping, and electrical systems shall be kept in good repair. Premises shall be kept free of junk and debris.
ii. Owner shall provide a regular program for the control of infestation by insects, rodents, and other pests.
iii. Where conditions are attributable to normal wear and tear, Owners hall make repairs and arrangements necessary to put and keep the premises in as good condition as required by law.
iv. Owner shall maintain all electrical, plumbing, heating, and other facilities in good working order.
v. Owner shall maintain the Property in reasonably weather tight condition and good exterior appearance.
vi. Owner shall remove graffiti within forty-eight (48) hours of it having been observed and/or reported.
vii. Owner hall provide overnight access for the Visalia Police Department to Owner’s maintenance and management staff in person, by telephone, or email. Such numbers shall be provided to the Visalia Police Department dispatch center and updated promptly as changed.
viii. Owner shall establish and conduct a regular program of routine maintenance for the facility. Such program shall include, but not necessarily be limited to, regular inspections of common areas, restrooms, and other similar activities that typically require attention at periodic intervals, but not necessarily continuously. ix. The name and phone number of Owner or Mooney Sequoia’s contracted Property management/Project operator shall be posted in a prominent location at the front of the property.
x. Owner shall maintain decorative planting in a manner that does not obstruct or diminish lighting and visibility throughout the complex and common areas. 223

7 xi. Owner shall manage the complex in a manner that does not permit inoperative vehicles, boats, trucks (one-ton capacity and over), trailers and/or recreational vehicles to be parked in the facility.
c. Obligation to Refrain from Discrimination. Owner covenants by and for itself and any successors in interest that there shall be no discrimination against or segregation of any person or group of persons on account of race, color, creed, religion, sex, sexual preference, source of income, marital status, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Property, nor shall Owner itself or any person claiming under or through them establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees of the Property. The foregoing covenants shall run with the land.
d. Form of Nondiscrimination and Nonsegregation Covenants. All deeds, leases or contracts for the rental, sale or lease of the Property shall contain or be subject to substantially the following nondiscrimination or nonsegregation clauses:
i. In deeds. "The grantee herein covenants by and for himself or herself, his or her heirs, executors, administrators and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, sexual preference, source of income, marital status, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the land herein conveyed, nor shall the grantee or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees in the land herein conveyed. The foregoing covenants shall run with the land." ii. In leases. "The lessee herein covenants by and for himself or herself, his or her heirs, executors, administrators, and assigns, and all persons claiming under or through him or her, and this lease is made and accepted upon and subject to the following conditions: that there shall be no discrimination against or segregation of any person or group of persons, on account of race, color, creed, religion, sex, sexual preference, source of income, marital status, national origin, or ancestry in the leasing, subleasing, transferring, use, occupancy, tenure, or enjoyment of the premises herein leased nor shall the lessee himself or herself, or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy of tenants, lessees, sublessees, subtenants, or vendees in the premises herein leased." iii. In contracts. "There shall be no discrimination against or segregation of, any person, or group of persons on account of race, color, creed, religion, sex, sexual preference, source of income, marital status, national origin, or ancestry, in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the premises, nor shall the transferee himself or herself or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with 224

8 reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees of the premises."
e. Rights of Access. For purposes of assuring compliance with this Agreement, representatives of the City shall have the right of access to the Property, without charges or fees, at normal business hours. The City (or its representatives) shall, except in emergency situations, notify Owner at least 48 hours prior to exercising its rights pursuant to this Section. Nothing herein shall be deemed to limit the ability of the City to conduct code enforcement and other administrative inspections of the Property in accordance with applicable law. f. Effect of Violation of the Terms and Provisions of this Agreement after Completion of Rehabilitation. City is deemed to be the beneficiary of the terms and provisions of this Agreement and of the covenants running with the land, for and in its own right and for the purposes of protecting the interests of the community and other parties, public or private, in whose favor and for whose benefit this Agreement and the covenants running with the land have been provided, without regard to whether the City has been, remains or is an owner of any land or interest therein in the Property. City shall have the right, if the Agreement or covenants are breached, to exercise all rights and remedies, and to maintain any actions or suits at law or in equity or other proper proceedings to enforce the curing of such breaches to which it or any other beneficiaries of this Agreement and covenants may be entitled. Unless otherwise specifically provided, the covenants contained in this Agreement shall remain in effect until the issuance by the City of a certificate of occupancy for the Project, except for the following:
i. The covenants pertaining to the use and maintenance of the Property and all improvements thereon, shall remain in effect for fifty-five (55) years from the date of recordation of the Rental Restriction.
ii. The covenants against discrimination shall remain in effect in perpetuity.

4. DEFAULTS AND REMEDIES
a. Default Remedies. Subject to the permitted extensions of time as provided in Section 5 of this Agreement, failure by any party to perform any action or covenant required by this Agreement within the time periods provided herein following Notice and expiration of any applicable cure period, shall constitute a "Default" under this Agreement. A party claiming a Default shall give written Notice of Default to the defaulting party specifying the Default complained of. Except as otherwise expressly provided in this Agreement, the claimant shall not institute any proceeding against any other party, and no other party shall be in Default if such party within thirty (30) days following receipt of such Notice of Default immediately, with due diligence, commences to cure, correct, or remedy such failure or delay and completes such cure, correction, or remedy with diligence.
b. Institution of Legal Actions. Except as otherwise specifically provided herein, upon the occurrence of a Default, the party or parties claiming a Default shall have the right, in addition to any other rights or remedies, to institute any action at law or in equity to cure, correct, prevent, or remedy any Default, or to recover damages for any Default, or to obtain any other remedy consistent with the purpose of this Agreement. Such legal actions must be instituted in the Superior Court of the County of Tulare, State of California, in an appropriate superior court 225

9 in that County or in the Federal District Court for the Central District of the State of California.

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

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

To City: City of Visalia
Attention: Finance Department - Housing
707 W. Acequia Avenue
Visalia, CA 93291
Email: [email protected]
Phone: (559) 713-4460

To Owner: Mooney Sequoia LP
c/o RHCB Development LP
3040 N. Fresno Street
Fresno, CA 93703
Attn: Wayne Rutledge, Chief Executive Officer
Email: [email protected]
Phone: (559) 213-7373
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10 Any written notice, demand or communication shall be deemed received immediately if delivered by hand, on the third day from the date it is postmarked if delivered by first-class mail, postage prepaid, upon receipt of verification of transmission if sent via facsimile provided a copy is sent the same day via first-class mail, and on the next business day if sent via nationally recognized overnight courier. Notices sent by a party's attorney on behalf of such party shall be deemed delivered by such party.
b. Enforced Delay; Extension of Times of Performance. Subject to the limitations set forth below, performance by any party hereunder shall not be deemed to be in Default, and all performance and other dates specified in this Agreement shall be extended, where delays or Defaults are due to: war; insurrection; strikes; lockouts; riots; floods; earthquakes; fires; casualties; acts of God; acts of the public enemy; epidemics; quarantine restrictions; freight embargoes; governmental restrictions or priority; litigation; unusually severe weather; acts or omissions of the other party; or acts or failures to act of the City or any other public or governmental City or entity (other than the acts or failures to act of the City under this Agreement which shall not excuse performance by the City). An extension of time for any such cause shall be for the period of the enforced delay and shall commence to run from the time of the commencement of the cause (but in any event shall not exceed a cumulative total of one hundred twenty (120) days), if Notice by the party claiming such extension is sent to the other party within thirty (30) days of the commencement of the cause. Times of performance under this Agreement may also be extended in writing by the mutual agreement of City and Owner.

Owner expressly agrees that adverse changes in economic conditions, either of Owner specifically or the economy generally, changes in market conditions or demand, and/or Owner’sinability to obtain financing or other lack of funding to complete the Project shall not constitute grounds of enforced delay pursuant to this Section 5. Owner expressly assumes the risk of such adverse economic or market changes and/or inability to obtain financing, whether or not foreseeable as of the date of this Agreement.
c. Successors and Assigns. All of the terms, covenants and conditions of this Agreement shall be binding upon Owner and its permitted successors and assigns. Whenever the term "Owner" is used in this Agreement, such term shall include any other permitted successors and assigns as herein provided.
d. Relationship between City and Owner It is hereby acknowledged that the relationship between City and Owner is not that of a partnership or joint venture and that the City and Owner shall not be deemed or construed for any purpose to be the agent of the other.

Accordingly, except as expressly provided herein or in the Attachments hereto, the City shall have no rights, powers, duties, or obligations with respect to the development, operation, maintenance or management of the Property or the Project. Owner agrees to indemnify, hold harmless and defend the City from any claim made against the City arising from a claimed relationship of partnership or joint venture between the City and Owner with respect to the development, operation, maintenance or management of the Property or the Project unless due to the gross negligence or willful misconduct of City.
e. City Approvals and Actions. Whenever a reference is made herein to an action or approval to be undertaken by the City, the City Manager of the City or his or her designee is 227

11 authorized to act on behalf of the City unless specifically provided otherwise or the context should require otherwise.
f. Counterparts. This Agreement may be signed in multiple counterparts which, when signed by all parties, shall constitute a binding agreement. g. Titles and Captions. Titles and captions are for convenience of reference only and do not define, describe, or limit the scope or the intent of this Agreement or of any of its terms.

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

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

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

MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE
DEBTOR."
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13 As such relates to this Section, City and Owner each hereby waives and relinquishes all rights and benefits that it may have under Section 1542 of the California Civil Code. s. Assignment by City. City may assign or transfer any of its rights or obligations under this Agreement with the approval of Owner, which approval shall not be unreasonably withheld; provided, however, that the City may assign or transfer any of its interests hereunder to the City, or any public or private entity controlled by the City at any time without the consent of Owner.

t. Assignment by Owner. Owner shall not transfer or assign this Agreement, the Note, the Deed of Trust, or its interest in the Property or the Project or any portion thereof without prior written approval by the City, which approval shall not be unreasonably withheld.

Notwithstanding anything to the contrary contained herein, City hereby expressly approves of a transfer of the Project to an affiliate of RHCB.
u. Applicable Law. The laws of the State of California, without regard to conflict of laws principles, shall govern the interpretation and enforcement of this Agreement.

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

THE CITY OF VISALIA, a public body,
corporate and politic
Dated: _________________ By: ___________________________________ Leslie Caviglia, City Manager
APPROVED AS TO FORM:

______________________________________
Attorney for City

230

14 MOONEY SEQUOIA LP,
a California limited partnership

By: HOM XXXIV LLC,
a Delaware limited liability company,
its Managing General Partner

By: Housing on Merit,
a California nonprofit public benefit corporation,
its Manager

By:

Jaymie Beckett
Chief Executive Officer

By: RHCB VISALIA LLC,
a California limited liability company,
its Co-General Partner

By: RHCB Development LP,
a California limited partnership,
its Sole Member

By: WRBH LLC,
a California limited liability company,
its General Partner

By:

Wayne Rutledge
Manager

By: UP VISALIA LLC,
a California limited liability company,
its Co-General Partner

By: UP Holdings California, LLC,
an Illinois limited liability company registered
to do business in the State of California,
its Sole Member

By:

Cullen J. Davis
Manager
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15 Exhibit “A”

Legal Description of the Property

For APN/Parcel ID(s): 096-321-013-000

THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF VISALIA, COUNTY OF TULARE, STATE OF CALIFORNIA AND IS DESCRIBED AS FOLLOWS:

PARCEL 1:

That portion of Lot 12 of Oak View Colony, in the City of Visalia, County of Tulare, State of California, according to the Map thereof recorded in Book 4,

Page 31 ends

Visalia City CouncilMay 19, 2025

Visalia City Council
May 19, 2025