Visalia City Council
July 21, 2025

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
Monday, July 21, 2025 7:00 PM City Council Chambers

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. Parks and Recreation Month Proclamation

2. New Employee Introductions: Convention Center
Samantha Rummage-Mathias, Convention Center Manager
25-0272

3. Vacancies, Recruitment and Retention Efforts - Per a State of California requirement, hold a Public Hearing on vacancies, recruitment and retention efforts for the City of Visalia. 25-0300

4. Cannabis Ordinance Discussion - Provide staff with direction on preliminary Cannabis Ordinance content and structure.
25-0163

5. Surplus Policy - Review current General Fund surplus policy and consider making revisions to the policy.
25-0270
ADJOURN TO CLOSED SESSION - 6:00 PM (Or, immediately following Work Session)
CALL TO ORDER REGULAR SESSION - 7:00 PM

PLEDGE OF ALLEGIANCE

1 Visalia City Council Meeting Agenda - Final July 21, 2025

INVOCATION LED BY DEBBIE MORENO, PRAISE CENTER CHURCH

SPECIAL PRESENTATION / RECOGNITION
Recognition of National Spelling Bee Finalist Sarvadnya Kadam California American Planning Associate Award of Merit, City of Visalia 6th Cycle Ceremonial Swearing In - Shonna Oneal, Administrative Services Director; Jason Glick Parks and Recreation Director

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. 25-0130

2. Open Space District No 25-02 - Adopt Resolution No. 2025-36 and 2025-37 authorizing the intention and formation of Open Space District No 25-02 located at 3234 E. Roosevelt Ave. 25-0105

3. Design Contract Award and Appropriation of Funds - Authorize the City Manager to award the design contract to Peters Engineering Group for the Houston Community Connectivity Project in the amount of $258,705 and authorize the additional appropriation of funds in the amount of $330,000 from the Measure R Local Fund (131).
25-0201

2 Visalia City Council Meeting Agenda - Final July 21, 2025

4. Caltrans Maintenance Agreement - City Street Sweeping of State routes - Authorize the City Manager to sign a delegated maintenance agreement with Caltrans for the sweeping of state routes within City limits for the annual amount of $37,215.00. 25-0257

5. Landscape and Lighting Assessment District Formation - Request authorization to initiate proceedings for the formation of Landscape and Lighting Assessment District No. 25-05 “Pratt Family Ranch 1A, 1C, 1D,” and ordering and levying the annual assessments for Landscape and Lighting Assessment District No. 25-05 “Pratt 1A, 1C, 1D” adopting Resolution Nos. 2025-50 and 2025-51.
25-0260

6. Landscape and Lighting Assessment District Formation - Request authorization to initiate proceedings for the formation of Landscape and Lighting Assessment District No. 25-04 “Pratt Family Ranch 1B” and ordering and levying the annual
assessments for Landscape and Lighting Assessment District No. 25-04 “Pratt Family Ranch 1B” adopting Resolution Nos. 2025-52 and 2025-53.
25-0261

7. Developer Reimbursement Agreement - Authorize the City Manager to execute the reimbursement agreement for road improvements completed with River Run Ranch, Phases 6 & 7 subdivision, located on the north side of East St. Johns Parkway between McAuliff Street and River Run Street.
25-0262

8. Community Housing Development Organization
Re-certification - Authorize re-certification of Self-Help Enterprises as a Community Housing Development Organization (CHDO); authorize an award for $226,944 in Fiscal Year 2025/2026 HOME funds, as a 55-year residual receipt loan, toward construction of an 80-unit affordable senior housing development known as Crescent Meadows; and authorize the City Manager to execute a letter of commitment for Self-Help Enterprises for Crescent Meadows for an amount up to $1 million (combined Fiscal Year 2025/2026, Fiscal Year 2026/2027, and Fiscal Year 2027/2028 HOME funding), contingent upon available funding.
25-0264

9. Fire Department Reimbursement Resolution - Adopt Resolution 2025-48 to replace Governing Body Resolution 2015-09 and add the Deputy Fire Chief classification for portal-to-portal reimbursement eligibility under the California Fire Assistance Agreement.
25-0265

3 Visalia City Council Meeting Agenda - Final July 21, 2025

10. Record Final Subdivision Map - Request authorization to record the final map for Elliott Subdivision Phase 1, located west of South Roeben Street, approximately 650 feet south of West Tulare Avenue (83 lots); and also request authorization to initiate proceedings for the formation of Landscape and Lighting Assessment District No. 25-07, “Elliott Subdivision,” and ordering and levying the annual assessments for Landscape and Lighting Assessment District No. 25-07, “Elliott Subdivision.” (Resolution Nos. 2025-54 and 2025-55 required).
25-0273

11. Service Agreement for After School Club for Visalia Unified School District - Authorize City Manager to execute an agreement between City of Visalia and Visalia Unified School District to provide an after school club for Crowley elementary school students at the city operated Manuel F. Hernandez Community Center.
25-0277

12. Park Project Notice of Completion - Request authorization to file a Notice of Completion for the Houk Park Shade Structure Design & Installation Services, at various parks.
25-0278

13. Park Project Notice of Completion - Request authorization to file a Notice of Completion for the Provident Skate Park Shade Structure Design & Installation Services, at various parks. 25-0279

14. Park Project Notice of Completion - Request authorization to file a Notice of Completion for the Recreation Park Shade Structure Design & Installation Services project.
25-0280

15. Park Project Notice of Completion - Request authorization to file a Notice of Completion for the Pinkham Park Playground
Replacement Project.
25-0283

16. Park Project Notice of Completion - Request authorization to file a Notice of Completion for the Woodland Park Playground Replacement Project.
25-0284

17. Park Project Notice of Completion - Request authorization to file a Notice of Completion for the John Combs Park Playground Replacement Project.
25-0286

18. Notice of Completion Willow Springs Unit No. 2 - Request authorization to file a Notice of Completion for Willow Springs, Unit No. 2 subdivision, located on the south side of Walnut Ave and East of Santa Fe Street, containing 87 residential lots. 25-0288

19. Professional Services Agreement for Transportation Impact Fee Update - Approve a professional services agreement for an update to the Transportation Impact Fee program with DTA Consultants for $95,940.
25-0285

4 Visalia City Council Meeting Agenda - Final July 21, 2025

20. Authorization to Apply for a Wellness Grant - Confirm the Visalia Police Department’s grant submission and authorize the City to accept, and if awarded, appropriate $200,000 for the Fiscal Year 2025 Law Enforcement Mental Health Wellness Act Grant and submit.
25-0289

21. Authorization to Accept the CHP Cannabis Tax Fund Grant - Authorize the Visalia Police Department to accept the California Highway Patrol Cannabis Tax Fund Grant Program, appropriate $95,062.25 and approve Resolution No. 2025-59.
25-0290

22. Civic Center Phase 2 Utility Payments to California Water Service - Authorize payment of $304,499 to California Water Service for installation of new water lines and fire hydrants and authorize the City Manager to approve the Civic Center water service agreements as required and provided by California Water Service.
25-0293

23. Civic Center Phase 2 Utility Payments with Southern California Edison - Authorize payment of $391,843.42 to Southern California Edison for installation of new electrical service and equipment and authorize the City Manager to approve the Civic Center electrical service agreements as provided and required by Southern California Edison.
25-0297

24. Historic Preservation Advisory Committee Appointment - Appoint Jocelyn Duran to a partial first term on the Historic Preservation Advisory Committee.
25-0295

25. Riverway Sports Park Fencing Project - Authorize the City Manager to Award Construction of Riverway Sports Park Fencing to Marko Construction Group Inc, of Fresno, CA, for an amount not to exceed $3,041,827 and appropriate an additional $849,010 from the General Fund.
25-0296

26. Record Final Subdivision Map - Request authorization to record the final map for Pearl Woods Phase 1 subdivision, located at the southwest corner of McAuliff Street and Cherry Avenue (105 Lots); and, request authorization to initiate proceedings for the formation of Landscape and Lighting Assessment District No. 25-06 “Pearl Woods”, and ordering and levying the annual assessments for Landscape and Lighting Assessment District No. 25-06 “Pearl Woods”. (Resolution Nos. 2025-56 and 2025-57 required). 25-0298

27. Authorize payment to California Water Service - Authorize the fee payment of $169,844 to California Water Service for the installation of fire hydrants and irrigation water services for the Caldwell Avenue Widening Project from Santa Fe Street to Lovers Lane.
25-0299

5 Visalia City Council Meeting Agenda - Final July 21, 2025

28. Award of Landscape Maintenance Contract - Authorize the City Manager to Award annual contract for Landscape Maintenance of Landscape and Lighting Districts to Brightview Landscape Services Inc, of Fresno for an annual not to exceed amount of $107,407. 25-0302

29. Award of Landscape Maintenance Contract - Authorize the City Manager to Award annual contract for Landscape Maintenance of Landscape and Lighting Districts to Brightview Landscape Services Inc, of Fresno for an annual not to exceed amount of $80,141. 25-0303

30. Award of Landscape Maintenance Contract - Authorize the City Manager to Award annual contract for Landscape Maintenance of Landscape and Lighting Districts to Perfect Care Landscape and Maintenance, of Tulare for an annual not to exceed amount of $71,059.
25-0304

31. Ordinance Adoption - Second reading and adoption of Ordinance No. 2024-16 to adopt Zoning Text Amendment No. 2025-01: A request by the City of Visalia to amend text within the Visalia Municipal Code Title 17 (Zoning Ordinance) to clarify and facilitate City Council adoption of Single-Family Residential Objective Design Standards and Planned Residential Development
standards applicable to new single-family residential developments by Resolution rather than by Ordinance.
25-0306

32. Fire Department Hazmat Memorandum of Understanding
Extension with amendments - Authorize the City Manager to execute an updated amendment and extension of the Tulare & Kings County Interagency Hazardous Materials Team
Memorandum of Understanding.
25-0307

33. Authorize Grant Writing and Submittal - Authorize the City Manager to enter a contract with Community Services Employment Training to write and submit an application for the Cal VIP grant on behalf of the City with an emphasis in the grant to provide recreational programming opportunities for impacted families and children in the Visalia community.
25-0308

34. Property Insurance Replacement Coverage - Approve City’s participation with the Alliant Property Insurance Program effective July 1, 2025, and authorize payment of the policy in the amount of $477,873.38.
25-0315

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.

6 Visalia City Council Meeting Agenda - Final July 21, 2025

1. Massage Establishment Ordinance Adoption - Public Hearing and First Reading of Ordinance No. 2025-03, a request by the City of Visalia to amend Visalia Municipal Code Section 5.68 “Massage Establishments” and First Reading of Ordinance for Adoption of Zoning Text Amendment No. 2025-02, a request by the City of Visalia to amend Visalia Municipal Code Title 17 (Zoning), Chapter

17.04 Definitions and Chapter 17.25 Uses in the Mixed Use, Office, and Industrial Zones, designating Massage Establishments as a conditionally permitted use in the Regional Commercial (C-R) zone. 25-0275

2. TEFRA Public Hearing - Conduct a public hearing for the proposed issuance of revenue bonds by the California Municipal Finance Authority, in an amount not to exceed $28,000,000, to finance and refinance the acquisition, construction, development and equipping of an 80-unit senior residential rental project located at the northwest corner of Ferguson Ave. and N. Dinuba Blvd.; adopt Resolution 2025-49 to approve the financing of the project by the CMFA; and appropriate bond issuance funds to the HOME Crescent Meadows project.
25-0263

3. Prezone Ordinance Adoption - An Introduction and first Reading of Ordinance No. 2025-04, a request by the City of Visalia to adopt a prezone of the property related to Annexation No. 2024-03, undergoing annexation into the City limits of Visalia. The prezone will change zones on the Official Zoning Map of the City of Visalia from 284 acres of unzoned to approximately 253 acres of Industrial (I) zone designation and approximately 31 acres of I-L (Light Industrial), consistent with the land use designations of the Visalia General Plan Land Use Map and consistent with Section 17.06.050 of the Visalia Municipal Code. The proposed Project is located on approximately 284 acres, on the north side of Riggin Avenue between Shirk Street and Kelsey Street. (APN: 077-840-004, 005, 006).
25-0267

4. Prezone Ordinance Adoption - An Introduction and first Reading of Ordinance No. 2025-05, a request by the City of Visalia to adopt a prezone of the property related to Annexation No. 2024-05, undergoing annexation into the City limits of Visalia. The prezone will change zones on the Official Zoning Map of the City of Visalia from 62 acres of unzoned to approximately 55 acres of R-1-5 (Single-Family Residential, 5,000 square foot minimum site area) and approximately 7 acres of C-MU (Mixed Use Commercial) zone designation, consistent with the land use designations of the Visalia General Plan Land Use Map and consistent with Section 17.06.050 of the Visalia Municipal Code. The proposed project site is located on approximately 62 acres, on the southeast corner of South Santa Fe Street and East Caldwell Avenue (APNs: 123-400-005 and 123-400-001).
25-0266

7 Visalia City Council Meeting Agenda - Final July 21, 2025

5. Oak Tree Preservation Ordinance Amendment- Introduce the first reading of Ordinance 2025-06 amending Chapter 12.24 of the Visalia Municipal Code Relating to Oak Tree Preservation. 25-0305

6. First Reading of Ordinance 2025-07 - Introduce the first reading of Ordinance 2025-07 authorizing the grant of easements to Southern California Edison Company to construct and maintain electrical facilities on a portion of city-owned property and authorizing the City Manager to execute the grant of easements. 25-0281

CLOSED SESSION REPORT

8 Visalia City Council Meeting Agenda - Final July 21, 2025

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

Buyer: City of Visalia
Seller: Judy A.Rose, Trustee of the Rose Family Trust dated October 10, 2019
APN: 124-010-011
Purpose: Caldwell Widening Project - Santa Fe to Lovers Lane Brief Description: Right of Way
Price: $40,000.00
Closing Date: 6/4/2025
Closed Session Council Date: 10/7/2024
Project Manager: Eric Bons
Buyer: City of Visalia, a Municipal Corporation
Seller: Jillaina Leann Brown and Eliza Cotton Ross, Successor Co-Trustees of the Ingram Family Irrevocable Trust dated August 28, 2013
APN: 100-630-023 & 100-630-024 (portion of)
Purpose: Right of Way
Brief Description: Caldwell Improvement Project Santa Fe to Lovers Lane
Price: $75,000.00
Closing Date: 6/30/2025
Regular Session Council Date: 8/7/2023
Project Manager: Eric Bons
Buyer: City of Visalia, a Municipal Corporation
Seller: City of Visalia, a Municipal Corporation, as Successor Agency of the City of Visalia Redevelopment Agency
APN: 094-180-009, 094-180-011, 094-180-010, 094-180-012, 094-180-013, 094-190-015, 094-190-018, 094-190-019,
094-190-020, 094-190-016, 094-240-043, 094-240-048,
094-240-049
Purpose: Civic Center Properties
Brief Description: Successor Agency Transfer
Price: $6,280,317.00
Closing Date: 6/30/2025
Closed Session Council Date: 3/3/2025
25-0318

ADJOURNMENT

UPCOMING CITY COUNCIL MEETINGS

9 Visalia City Council Meeting Agenda - Final July 21, 2025

1. Upcoming City Council Meetings
Monday, August 4, 2025 @ 7:00 p.m. at 707 W. Acequia
Monday, August 18, 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.
25-0247

10 Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 25-0272 Agenda Date: 7/21/2025 Agenda #: 2.

Agenda Item Wording:

New Employee Introductions: Convention Center
Samantha Rummage-Mathias, Convention Center Manager
Visalia City Council Page 1 of 1 Printed on 7/18/2025
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Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 25-0300 Agenda Date: 7/21/2025 Agenda #: 3.

Agenda Item Wording:

Vacancies, Recruitment and Retention Efforts - Per a State of California requirement, hold a Public Hearing on vacancies, recruitment and retention efforts for the City of Visalia.

Deadline for Action: 7/21/2025
Submitting Department: Administration
Contact Name and Phone Number: Amy Powell, Acting Human Resources Manager [email protected] 559-713-4417; Shonna Oneal, Administrative Services Director [email protected] 559-713-4053
Department Recommendation:

Conduct a public hearing on position vacancies, recruitment and retention efforts as mandated by California Government Code 3502.3
Background Discussion:

Summary: Assembly Bill (“AB”) 2561 of 2024 requires public agencies to hold a public hearing to address the status of job vacancies, recruitment and retention efforts prior to the adoption of the agency’s annual budget. The City adopted the budget for FY 25-26 in the spring of 2024, prior to this legislation being adopted, so there was no opportunity to hold the public hearing prior to the adoption of the budget. In future years, it will be held before the budget as applicable and/or held annually.

The legislature’s intent of AB 2561 is to address the issue of job vacancies in local government, which can adversely impact the delivery of public service, may lead to heavier employee workloads, and may also lead to increased employee turnover.

Pursuant to Government Code § 3502.3, the City is required to do the following:

1. Public Hearing: At least once each fiscal year, at a public hearing before the governing body, the City shall present information regarding the status of vacancies and recruitment and retention efforts and identify any necessary changes to policies, procedures and recruitment activities that may lead to obstacles in the hiring process.

2. Employee Organization Participation: Allow the recognized employee organization for each bargaining unit within the City to make presentations during the public hearing concerning vacancies and recruitment and retention efforts. There are five represented bargaining units at the City and all have been notified of the public hearing and advised of their right to address the Council on the matter.

3. Additional Reporting for High Vacancy Rates: If vacancies within a single bargaining unit meet or Visalia City Council Page 1 of 2 Printed on 7/18/2025
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File #: 25-0300 Agenda Date: 7/21/2025 Agenda #: 3.
exceed 20 percent of authorized full-time positions in that bargaining unit, the City must provide additional information during the public hearing, including the following: (1) the total number of vacancies; (2) the number of applicants; (3) the average time to fill positions; and (4) opportunities to improve compensation and working conditions for employees in the bargaining unit.

The following reflects the City’s represented and unrepresented bargaining units’ vacancy rates as of June 6, 2025:

BARGAINING UNIT BUDGETED VACANCIES VACANCY
RATE
Police Managers & Supervisors Association (Group
A)
26 1 4%
Visalia Police Officers Association (Group B) 139 4 3%
Miscellaneous Supervisors & Managers (Group E) 111 12 11% Visalia Firefighters Association (Group G) 76 5 7%
Northern California Carpenters Regional Council
(Group M)
335 20 6%
Unrepresented Confidential 19 1 5%
Unrepresented Department Heads 10 1 10%
Total 716 44 6%
No vacancy rates within any of the City’s five bargaining units meet or exceed 20 percent of authorized full-time positions in that bargaining unit.

Fiscal Impact: There is no fiscal impact associated with conducting this public hearing and receiving this report.

Prior Council Action: n/a
Alternatives: n/a
Recommended Motion (and Alternative Motions if expected):

I move to accept the Vacancies and Recruitment and Retention Efforts report as required by Assembly Bill 2561.

Environmental Assessment Status: n/a
CEQA Review: n/a
Attachments: Power Point presentation
Visalia City Council Page 2 of 2 Printed on 7/18/2025
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AB 2561
Vacancy Rates
Public Hearing
July 21, 2025
14 Today’s Recommended Action
1) Conduct a public hearing pursuant to Government
Code Section 3502.3
2) Receive a report on the City of Visalia’s vacancies
and recruitment and retention efforts.
15 What is AB 2561?
Assembly Bill 2561 requires public agencies
to annually assess and address vacancy
rates.
16 Requirements of AB 2561

1. Track job vacancies.

2. Present information on the status of the vacancies and recruitment and retention efforts at least once per FY.

3. Identify any policies, procedures, and recruitment
activities that may present obstacles in hiring.

4. Allow employee organization participation.

Additional obligations may apply if the vacancy rate in a bargaining unit exceeds 20%.
17 Vacancy Rates as of June 6, 2025

BARGAINING UNIT BUDGETED VACANCIES VACANCY
RATE
Police Managers & Supervisors (Group A) 26 1 4%
Visalia Police Officers Association (Group B) 139 4 3%
Miscellaneous Supervisors & Managers (Group E) 111 12 11% Visalia Firefighters Association (Group G) 76 5 7%
Northern California Carpenters Regional Council (Group M) 335 20 6% Unrepresented Confidential 19 1 5%
Unrepresented Department Heads 10 1 10%
Total 716 44 6%
18 Recruitment Activity Cycle

VACANCY &

REQUISITION

JOB POSTING
&

ADVERTISEMENT

APPLICATION

SCREENING &

EXAMINATION

PROCESS

ELIGIBLE LIST &

CERTIFICATION
DEPT.

INTERVIEWS,

SELECTION &

APPOINTMENT

PROBATIONARY

PERIOD &

EMPLOYEE

ORIENTATION
2025 Activity January 1 to June 6:
26 Recruitments
2,153 Applications
36 New Hires
21 Reclassifications/Promotions
Typically, 2-4
weeks
Typically, 1-3
weeks
Typically, 4-6
weeks
19 Recent Recruitment & Retention Efforts
Alternative Work
Schedules Longevity Pay
Rebrand,
Social Media
Advertising
Employee
Referral Program
20 Continuing & Future
Recruitment & Retention Efforts
Competitive Benefits
Wellness Clinic
Informational Meetings
for Police Officer
Recruits
Education
Reimbursement
Continued Improvement
in Recruitment Process
to Reduce the Time to
Hire
Training
21 Next Steps
1) Questions for Staff
2) Open Public Hearing
22 Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 25-0163 Agenda Date: 7/21/2025 Agenda #: 4.

Agenda Item Wording:

Cannabis Ordinance Discussion - Provide staff with direction on preliminary Cannabis Ordinance content and structure.

Deadline for Action: 7/21/2025
Submitting Department: Community Development
Contact Name and Phone Number:

Devon Jones, Economic Development Manager, [email protected], (559) 713-4190; Paul Bernal, Planning and Community Preservation Director, [email protected], (559) 713-4025 Department Recommendation:

Receive staff report and presentation and provide staff with direction for the preliminary Cannabis Ordinance and business application process content and structure.

Summary:

On May 5, 2025, staff provided City Council with a Work Session staff report and presentation regarding direction and input on a Cannabis Ordinance and business application process that could be drafted and potentially considered for Council adoption but with a clear understanding that the number of businesses permitted to operate in the City of Visalia would be zero, based on current Council direction, which effectively establishes the regulatory framework for such businesses but would not permit such businesses from operating within the City of Visalia.

During the Work Session discussion, six specific items were discussed with the City Council to seek input and direction on these items to be addressed in the framework and structure of a Cannabis Ordinance. The six items, and subsections of these items are noted as follows:

1. Where in the municipal code should the cannabis business ordinance be placed?

2. Which uses or business types does the City want included or excluded? What zones would the City like to allow the various business types in?
There are seven California Department of Cannabis Control (DCC) license types as follows <https://cannabis.ca.gov/applicants/license-types/>:

1. Cultivation 2. Manufacturing

3. Distribution 4. Testing laboratory

5. Retail 6. Microbusiness

7. Event

3. What sensitive uses would the City like to identify, and what size buffers?

4. Hours of operation restrictions?
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File #: 25-0163 Agenda Date: 7/21/2025 Agenda #: 4.

5. Additional security measures?

6. Term of license?
The City Council provided direction on some of the key items and also directed staff to do additional research on the following:

1. Additional analysis for Council consideration on whether Microbusiness should be an allowed cannabis business model/use in the Cannabis ordinance.

2. Provide several maps to identify what potential buffers and sensitive receptor uses would provide in terms of available sites for consideration for retail cannabis uses.

3. Research larger cities to determine on how these jurisdictions address buffer requirements from sensitive land uses and separation distance requirements from other cannabis retail establishments.

Additionally, staff is seeking clarity from Council with two particular matters at this time:

1. Clarity on whether operating hour restrictions should also apply to non-storefront retail, which do not allow for customer access.

2. Clarification on whether to limit the number of retail non-storefront locations.

This work session staff report includes additional analysis as noted above on the items Council requested additional analysis and/or clarification, in addition to input and direction from the Council on Items Nos. 7, 8, and 9, which were provided as part of the May 5th staff report but were not discussed during the public meeting.

Staff conducted the first review of input needs with Council at the May 5th Council meeting for question item Nos. #1 through 6 (a copy of the May 5th staff report is included as Attachment 1) and is returning to discuss tabled questions and question item Nos. #7 through #9 below given these alone require in depth conversation and analysis.

Items Council Directed Staff on Additional Analysis or Information:

1. Does the City want to include Microbusiness use types and what zones should be considered?
Recommendation: Given Council input on May 5th, staff would recommend allowing Microbusiness use types that do not include any “Cultivation” uses other than the Processor sub license type and limiting the potential retail use component to non-storefront.

Staff concludes, based on input received from Council during the zoning recommendations for the Processor Cultivation, Manufacturing, and Distribution uses, the requirement that a Microbusiness license consist of at least three of these activities at one location (including Retail) and given retail uses are not typically permitted in the Light Industrial or Industrial zones, non-storefront retail (delivery only, similar to a fulfillment center) should be the only type of retail use allowed for potential Microbusinesses.

2. What sensitive uses would the City like to identify, and what size buffers? Buffer maps: Council requested various maps to reveal what potential buffers and sensitive receptor Visalia City Council Page 2 of 8 Printed on 7/18/2025
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File #: 25-0163 Agenda Date: 7/21/2025 Agenda #: 4.

Buffer maps: Council requested various maps to reveal what potential buffers and sensitive receptor uses would provide in terms of available sites for consideration. Staff’s current assumption, based on prior input from Council, is that any such buffers are meant to be applicable to storefront retail or cannabis businesses that allow for customer access only. Attached to this report are maps that identify various buffer distances applied to each of the following sensitive receptors:
- Existing schools (K-12)
- Licensed day care facilities
- Parks, existing or planned (includes green space/trails) - Youth centers
- Residential zoning
- Any existing church or religious institution, located either inside or outside of the city limits.

Based on the mapping exercise which identified buffer distances of 500, 600, 750, 900, and 1,000 feet from all of these sensitive receptors, there is clearly limited availability of sites in any of these buffer distance scenarios. For instance, under the 1000-foot buffer scenario, there are essentially no available sites with the exception of some Service Commercial in the East Main commercial corridor and near the Business Research Park (BRP). BRP zoning is limited for retail uses while Industrial zoning prohibits stand-alone retail uses. Even under the 500-foot buffer scenario, there are not many sites to consider.

Input from Cannabis Retailers: In addition to doing the mapping exercise, staff sought input from Cannabis Retailers. Staff spoke with several existing Cannabis Retailers in the region to acquire input on any recommendations or suggestions as to where they would consider locating retail businesses within the City. The input varied given familiarity with Visalia, but some main points expressed by these Retailers are included as “Attachment 2: Cannabis Retailer Input.” Larger cities location considerations: There was a request by Council for additional research into what some of the larger urban markets beyond Visalia’s region put forth in terms of buffer and location considerations. Staff looked at specific buffer language and zoning considerations for the cities of Bakersfield, Fresno, Modesto, Los Angeles, San Diego, and San Francisco. Those findings are included in “Attachment 3: Large City Location Research.” It should be noted that there are 8 dispensaries operating in Modesto, 13 retailers open in Fresno (as of May 2024), over 200 dispensaries in the City of Los Angeles, 27 retail cannabis businesses (with max set at 36) in San Diego, over 60 dispensaries operating in San Francisco, and none operating in Bakersfield given commercial cannabis businesses are not allowed.

Buffer and Sensitive Uses Recommendation: Taking all of this into consideration and given the severely limited availability of sites when considering the buffering distances as provided in the attached maps from residential zoned land and parks/trails in Visalia, staff would not recommend including such buffers. Rather, staff would recommend a 500-foot buffer from existing schools (K-12), licensed day care facilities, or “youth centers”. Applying this buffer distance to these explicitly listed land uses, which focus on youth-oriented locations, allows adequately available sites along major commercial corridors that are potentially suitable geographical locations that may best suit the needs for interested cannabis retailers.

Zoning Recommendation: Given retailer input, large city research, prior Council input, mapping Visalia City Council Page 3 of 8 Printed on 7/18/2025
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Zoning Recommendation: Given retailer input, large city research, prior Council input, mapping results and corresponding staff recommended buffers and sensitive uses, staff recommends considering allowing cannabis retail storefront uses as a conditionally allowed use in the Commercial Mixed Use (CMU) zone, Regional Commercial (CR) zone, and Service Commercial (CS) zone.

These zones allow retail related uses, can be found in high traffic commercial corridors with ample parking, should have a variety of existing commercial spaces available, and are outside of other potential retail zones that Council may not wish to entertain for storefront cannabis retail uses such as the Neighborhood Commercial (C-N) and Downtown Mixed Use (DMU) zones. ‒ East Downtown: Given Council’s interest in prohibiting these uses in the Downtown Area, staff is seeking clarity on whether or not this should also include the East Downtown area as well.

In not allowing the use in the DMU zone, this adequately restricts access to Downtown (i.e., sites zoned DMU). However, it does not restrict access to portions of the East Downtown which is generally defined as the area north of Mineral King Ave., east of Tipton St., south of Murray Ave., and west of Ben Maddox Way, given that area also consists of C-S and CMU zoning.

Recommendation: During the cannabis retailer survey process, staff learned of several retailers that considered themselves, “higher end” or “boutique” type businesses that prefer downtown districts.

Allowing access to East Downtown may provide ample access to such a district while also aiding in the revitalization efforts of the East Downtown area, similar to the Microbrewery District efforts. Staff is seeking Council direction on whether to restrict cannabis uses in the East Downtown Area.

Buffers from other retail cannabis stores Recommendation: Due to complications that proximity buffers from other cannabis retailers may pose during the application and selection process, namely the need to identify a site in the application process, potentially combined with a lottery selection process, staff would not recommend requiring a buffer between selected retail cannabis businesses.

Non-storefront retail buffers Recommendation: Given non-storefront retail does not allow customer access, and given the City currently only allows Delivery only medical marijuana retail (non-storefront medical) in the Industrial and Light Industrial zones, it would likely make sense to only allow nonstorefront retail businesses to operate outside of typical retail commercial corridors, and instead locate in zones such as the Light Industrial or Industrial zones. As such, such buffers would not seem necessary so staff would not recommend applying sensitive use buffers to non-storefront retail or non -storefront medical.

Items Yet to be Discussed in Detail:

7. a. Should the application and selection process be codified by Ordinance or adopted by Resolution?
HdL strongly recommends the business application and selection process be defined and approved separately by resolution. In the local region, HdL has assisted the Cities of Hanford, Farmersville, Porterville Fresno, and Firebaugh with developing their application and review processes.

Additionally, HdL conducted the application review for these cities with the exception of Fresno.

Recommendation: Staff recommends the application and selection process be adopted by resolution rather than ordinance. Adoption by resolution would allow any future changes to these processes to be conducted in a streamlined manner rather than having to make changes subject to the adoption of ordinance requirements (i.e., first and second readings with a 30-day requirement before an Visalia City Council Page 4 of 8 Printed on 7/18/2025
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ordinance requirements (i.e., first and second readings with a 30-day requirement before an ordinance takes effect).

7. b. Structure and Information Material of Business Application The following is in regard to the retail storefront business type in particular. Application materials for other cannabis business types may be similar, though given a competitive selection process may not be applicable, staff would envision these applications to be much more streamlined and typical of existing application processes for other business types in the City.

Structure of Application: Given the vast amount of material that is required as part of the application process, staff, with guidance from HdL,, has identified an outline of the material and steps the Council may want to consider when businesses submit their application for consideration. The following is an outline and overview of the application process for Council’s consideration and direction:

1. All applications must respond to all requirements outlined in the procedures and guidelines to be prepared by staff. Submittals must be done as one complete comprehensive application package either via in person or by a certified delivery company (i.e., FED EX, UPS or any other common carrier delivery service). Items recommended to be included as part of the application include (All documents to be original wet signatures and notaries for each document where applicable):
a. Commercial Cannabis Business Application;
b. Financial Responsibility, Indemnity and Consent to Inspection Terms Agreement; c. Agreement on Limitations of City’s Liability, and Certifications, Assurances, Warranties, and Indemnification to City;
d. Property Owner Consent/Landlord Affidavit;
e. Proof Property Ownership or Lease Agreement/Letter of Intent to Lease; f. Proof of insurability from an Insurance Company;
g. Zoning Verification Application;
h. Application Zoning Verification Letter;
i. Application fee. Please note, staff will review the City’s current Fee Schedule to determine the appropriate fees to be applied to this application process.

Recommendation: Staff recommends that the Council direct staff to proceed with structuring a comprehensive application that includes items as detailed above.

Background / Criminal Check Requirement(s): As part of the overall Cannabis Ordinance process, background checks should be required for any person who is an owner, operator, manager and/or employee (collectively “Cannabis Business Person(s)”), and must undergo a criminal history background check to demonstrate they do not provide “good cause” for denial. Any potential operator, manager and/or employee (collectively “Cannabis Business Person(s)”) who do not meet the criminal history eligibility requirements will be disqualified.

Recommendation: Staff recommends background/criminal history checks be required as part of this process.

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Zoning Verification Letter: When reviewing other jurisdictions application processes, staff noted that most cities required applicants to obtain a Zoning Verification Letter from the Planning Department.

The Zoning Verification Letter is required to specify the intended use of the building (i.e. storefront retail) and the proposed building location. However, issuance of a Zoning Verification letter does not constitute written evidence of permission given by the City or any of its officials to operate a cannabis business, nor does it establish a “permit”, nor does it create an entitlement under the Zoning or Building Code.

Recommendation: Staff recommends that Zoning Verification letters be required as part of the application process and that an appropriate fee is assessed.

7.c Evaluation, Review and Proposed Selection Process
HdL has indicated that selection processes for any such Cannabis related business/use that may require limiting the number of licenses issued (e.g., retail storefront) should ultimately be done via a lottery draw method. This process is recommended in an effort to reduce exposure and risk to potential litigation by unselected applicants. The process should also include thorough application requirements and thorough quality assurance review for submitted applications, particularly if more applicants apply than licenses can be issued. Doing so establishes a rigorous up-front process to identify qualified firms for the lottery draw method.

Based on these concerns, the following outline evaluation, review and approval process structure is being provided for Council’s consideration and direction:

1. Determination of Eligibility - All applications must be completed and submitted in their entirety to move forward in the review process. Upon receiving a completed application, the application will be reviewed in its entirety based on the application checklist, which will be drafted by staff with assistance from HdL.

2. Application Evaluation and Review - Applications can be evaluated by using a set list of criteria, which is a common practice with other jurisdictions that have Cannabis ordinances.

Examples of criteria to be used could include the following:
- Business Plan - Include various elements of typical business plans, including in this case items such as owner qualifications, past performance, budgets and pro forma, proof of capitalization, description of operations.
- Location and Neighborhood Compatibility Plan - Should include elements typical for the City’s site plan review submittals but also how the potential business will proactively address and respond to any neighborhood complaints or concerns (odor control plan, managing traffic, waste management plan, etc.) in order to address neighborhood compatibility.
- Safety and Security Plan - Should consider all possible fire, medical and hazardous situations, as well as all access control, inventory control, cash handling procedures.

Complete policy/procedures manuals are not required at this point in the application process however, a great deal of review of the eventual requirements will need to be evident and detail will need to be provided at this stage. - Community Benefits Plan - Details any benefits the potential business will provide to the local community. Benefits may be in the form of volunteer services, monetary donations to Visalia City Council Page 6 of 8 Printed on 7/18/2025
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local community. Benefits may be in the form of volunteer services, monetary donations to local non-profit organizations, financial support of City-sponsored activities or organizations, in-kind donations to the City or other charitable organizations and/or any other economic incentives to the City.

Those applications, which are determined to meet the requirements in each category, will move on to the next step of the application process. If the application is incomplete or does not otherwise meet the minimum requirements, the Applicant may be given an opportunity to resubmit those sections that have been deemed incomplete or deficient. However, limitations to the number of times applicants may amend their application should be established.

3. Lottery Selection - For the reasons as noted above, all applications that can be accepted due to complete application filings should be eligible to be entered into a random lottery drawing that would permit them into the final step of the selection process. Staff will work with HdL to establish how this process should be structured to provide transparency in this process.

4. Permittee Selection Process - Official issuance of a commercial cannabis business permit should be conditioned upon the prevailing applicant obtaining all required land use approvals and building permits. Staff recommends land use approvals include obtaining a Conditional Use Permit (CUP). Staff would recommend allotting applicants six (6) months from the lottery selection to obtain a CUP and twelve (12) months to obtain any necessary building permits.

During the CUP hearing process, any potential concerns from nearby business locations or citizens could be heard and taken into consideration prior to issuance of cannabis business permit/license.

Recommendation: Direct staff to proceeds with establishing the Evaluation, Review and Proposed Selection Process as outlined above.

8. Who would approve the licenses (Planning Director, City Manager, City Council)? HdL has indicated that communities in which the City Manager or designee, or other city staff approve licenses as opposed to the City Council are typically less exposed to litigation.

Recommendation: Assign the approval authority to the City Manager or their designee.

9. Who would hear appeals?
In the delivery only medical marijuana retail business ordinance, the City Manager or their designee is assigned to hear appeals after a written notice of appeal is filed with the City Clerk within 10 business days of receipt of business license denial. There is no appeal to the City Council.

Recommendation: Assign appeal hearing process to the City Manager or their designee.

Next Steps:

Staff will work with HdL to format and structure the draft cannabis ordinance and business application and selection process resolution with the appropriate content as directed by Council. Staff will then return to a future Council meeting to review these materials.

Staff will also seek input from several business group partnerships such as the Visalia Chamber, Downtown Visalians, the Tulare Kings Hispanic Chamber of Commerce and the Visalia EDC, as well as the Citizens Advisory Committee. Any input received will be presented to Council in future Visalia City Council Page 7 of 8 Printed on 7/18/2025
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as the Citizens Advisory Committee. Any input received will be presented to Council in future presentations.

Fiscal Impact: None at this time
Prior Council Action:
· May 5, 2025 - Council provided initial input on questions #1 - 6 outlined in this report. · March 3, 2025 - Council authorized staff to proceed with drafting a cannabis business ordinance for adoption but during the adoption process, set the number of businesses permitted to operate in the City to zero effectively establishing the regulatory framework for such businesses but not yet permitting such businesses to operate.

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

No formal action required. All comments, feedback, and any unanswered questions received can be brought back to the City Council as a future Work Session (if needed) as staff and the consultant work on drafting the cannabis ordinance to be brought back to Planning Commission and the Council as appropriate.

Environmental Assessment Status: N/A
CEQA Review: N/A
Attachments:
- Attachment 1: May 5th staff report
- Attachment 2: Cannabis Retailer Input
- Attachment 3: Large City Location Research
- Attachment 4: Staff presentation
- Map 1: 500’ w/Residential and Parks
- Map 2: 600’ w/Residential and Parks
- Map 3: 750’ w/Residential and Parks
- Map 4: 900’ w/Residential and Parks
- Map 5: 1000’ w/Residential and Parks
- Map 6: 500’ without R & P
- Map 7: 600’ without R & P
- Map 8: 750’ without R & P
- Map 9: 900’ without R & P
- Map 10: 1000’ without R & P
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Attachment 2: Cannabis Retailer Input
- Dispersion of locations is more ideal than clustering in one allowed area. o Both from standpoint of allowing retailers to capitalize on a unique proximity to a consumer region, but also to lessen risk of inflated property rental rates or purchase prices.
 Rent rates could go up if property owners know that only certain areas will allow the cannabis businesses.
 This not only hurts the cannabis business but other retailers that may need to be in those areas.
o Not necessary to require a buffer but discourage clustering. - High traffic areas are ideal, not only from local/regional consumers, but also from tourists to the National Parks, etc.
- Majority seemed more interested in existing buildings, but new builds were not out of the question.
o For the smaller businesses, availability of quality, affordable existing building options were preferred over the highest trafficked commercial corridor.
- Parking access critical:
o Given the high foot traffic of typical cannabis stores, the retailers were all mindful of the potential impacts to neighboring businesses and traffic flow so stressed the importance of ample dedicated parking. Ideal sites should include well-designed, shared commercial centers or standalone locations with adequate access and circulation.
- Adjacent businesses that typically benefit from proximity to cannabis shops: gas stations, quick-serve restaurants, and local food businesses. - Real Estate Covenants, Conditions, and Restrictions (CCRs) that include “morality clauses” will often restrict access to cannabis retailers. - Particular zones of interest include:
o C-R (Regional Commercial)
o C-S (Service Commercial)
o C-MU (Commercial Mixed-Use)
o D-MU (Downtown Mixed-Use)
- Particular commercial corridors of interest include:
o Downtown:
 Most of the retailers talked to were interested in downtown, though some cited limited parking access and potential parking impacts to 31 neighboring businesses as the main reason they might not be as interested in downtown.
 Furthermore, areas near downtown such as the Microbrewery Overlay District were likely sufficient for some of those interested in downtown area.
 Some of those interested in Downtown attributed it to them being a “boutique”, higher end retail establishment, aligning more with a downtown presence than a typical shopping center layout. o Mooney:
 Caldwell and Mooney area
 South of Walnut
o North Dinuba Blvd:
 Dinuba Blvd. corridor
 Riggin/Dinuba Blvd
o 198 corridor:
 Ideal for capturing visitors to National Parks and commuters - Some of the retailers surveyed shared their experience with other application processes. Below are some of the main points:
o If a signed lease or site commitment is to be required as part of the application process (which we should require), there should be as much certainty for the applicants that the sites they are considering will be allowed to operate as cannabis businesses. So, zoning considerations should be clearly outlined beforehand.
o Suggest a merit-based selection process to ensure quality applicants. o Suggest including a community benefit component in the application process.
 This should also include identification of prior commitments to other communities and demonstrated proof of such community benefit commitments being carried out.
32 33
34 35
36 37
38 39
40 41
42 Attachment 3: Larger City Location Research
Bakersfield: Does not allow commercial cannabis businesses.

Fresno: In terms of retail businesses, according to Sec. 9-3307 of Article 33 of City of Fresno municipal code, “all buildings in which a cannabis retail business is located shall be no closer than eight hundred (800) feet from any property boundary containing any of the following:
(1) A cannabis retail business.
(2) A school providing instruction for any grades pre-school through 12 (whether public, private, or charter, including pre-school, transitional kindergarten, and K12). (3) A day care center licensed by the state Department of Social Services that is in existence at the time a complete commercial cannabis business permit application is submitted.
(4) A youth center that is in existence at the time a complete commercial cannabis business permit application is submitted.”
In terms of “commercial cannabis businesses” (all other forms of cannabis businesses other than delivery or sales of cannabis, medicinal or retail):
a) Laboratory testing may take place in a Commercial, Employment, or Downtown District.
b) There shall be permitted eight (8) cultivators, distributors, manufacturers, or microbusinesses located within the Cannabis Innovation Zone [area bounded by State Route 41, Golden State Blvd., Church Ave., East Ave., and Parallel Ave.]. c) There shall be permitted eight (8) cultivators, distributors, manufacturers, or microbusinesses located inside a Cannabis Innovation Hub or within one-half (1/2) mile of State Route 99 between Shaw Ave. and Clinton Ave., one (1) mile of State Route 99 north of Shaw Ave. or south of Clinton Ave., or within one (1) mile of State Route 180 west of State Route 99, and must be zoned either IL (Light Industrial) or IH (Heavy Industrial), and must meet all of the requirements for development in these zones. All buildings in which a cultivator, distributor, or manufacturer is located shall be no closer than one thousand (1,000) feet from any property boundary containing any of the following:
(1) Any residentially zoned parcel in the city, including any legal non-conforming residential uses as of the date a complete commercial cannabis business permit application is submitted.
(2) A school providing instruction for any grades pre-school through 12 (whether public, private, or charter, including pre-school, transitional kindergarten, and K-12).
(3) A day care center licensed by the state Department of Social Services that is in existence at the time a complete commercial cannabis business permit application is submitted.
(4) A youth center that is in existence at the time a complete commercial cannabis business permit application is submitted.
43 d) All Cannabis Innovation Hubs must be located within one-half (1/2) mile of State Route 99 between Shaw Ave. and Clinton Ave., one (1) mile of State Route 99 north of Shaw Ave. or south of Clinton Ave., or within one (1) mile of State Route 180 west of State Route 99, and must be zoned either IL (Light Industrial) or IH (Heavy Industrial), and must meet all of the requirements for development in these zones. All Cannabis Innovation Hubs buildings shall be located no closer than one thousand (1,000) feet from any property boundary containing any of the following:
(1) Any residentially zoned parcel in the city, including any legal non-conforming residential uses as of the date a complete commercial cannabis business permit application is submitted.
(2) A school providing instruction for any grades pre-school through 12 (whether public, private, or charter, including pre-school, transitional kindergarten, and K-12).
(3) A day care center licensed by the state Department of Social Services that is in existence at the time a complete commercial cannabis business permit application is submitted.
(4) A youth center that is in existence at the time a complete commercial cannabis business permit application is submitted.

Also, according to Sec. 9-3307, all cannabis retail businesses must be located on property zoned any of the following and meet all of the requirements for development in these zones:
- DTN (Downtown Neighborhood)
- DTG (Downtown General)
- CMS (Commercial Main Street)
- CC (Commercial Community)
- CR (Commercial Regional)
- CG (Commercial General)
- CH (Commercial Highway)
- NMX (Neighborhood Mixed-Use)
- CMX (Corridor/Center Mixed Use)
- RMX (Regional Mixed-Use)
Further, “Cannabis retail businesses shall be dispersed evenly by Council District. If changes to Council District boundaries create an un-even distribution, existing cannabis retail businesses shall be allowed to remain and subsequent cannabis retail businesses approved by the City Manager shall create even distribution by Council District.” Sec. 9-3306 of Article 33 indicates the maximum number of authorized cannabis businesses permitted:
- Retail cannabis businesses shall not exceed a total of 14 within the city though up to 7 more may be authorized by Council Resolution.
- Up to a total of 16 cultivators, distributors, manufacturers, or microbusinesses may be issued a commercial cannabis business permit.
- There is no limit on the number of testing laboratories which may be issued a commercial cannabis business permit.
44 - The City Manager has discretion to limit the number of commercial cannabis permits to less than what is allowed in this Article.

Modesto: According to section 10-3.703 of Article 7 of Chapter 3 of Title 10 of the City of Modesto Municipal Code, the following location and proximity buffers apply:
(1) No commercial cannabis use shall be located within six hundred (600) feet of a school, child care center, or youth center, as measured from the nearest property lines.
(2) No commercial cannabis use shall be located within one hundred(100) feet of any residential use; this distance shall be measured from any building or structure containing a commercial cannabis use to an existing residential structure used for residential purposes.
(3) No commercial cannabis use shall be located within two hundred (200) feet of a park or library, as measured from the nearest property lines. (4) All commercial cannabis uses listed in Table 3.7-1 except Retailer, Types 10 and 9 (storefront and non-storefront) and Type 12 (microbusiness with a retail component) licenses are allowed within the Business Park Land Use Designation of all applicable adopted Specific Plans, subject to all requirements of this article. (5) All commercial cannabis uses are prohibited in the
Downtown Cannabis Prohibition Overlay, regardless of a property's zoning designation. The Downtown Cannabis Prohibition Overlay is that area….including all properties that front either side of or are within the area bound by the following streets: Kansas Avenue, from Highway 99 to 9 th Street; Needham Street; Downey Avenue, from McHenry Avenue to Burney Street; Burney Street, from Downey Avenue to Jennie Street; D Street, from Jennie Street to Highway 99; and the area fronting Highway 99 within the boundary. If any parcel is partially within the Downtown Cannabis Prohibition Overlay, all commercial cannabis uses shall be prohibited on the entire parcel.

Further, these proximity buffers, “may be waived by the decision-maker when the applicant can show that an actual impassible physical separation exists between land uses or parcels, such as a building, sound wall, major street or highway, such that no negative off-site impacts could occur that would result in harm or likely harm to the public health, safety, or welfare or the health, safety, or welfare of nearby resident or tenant, unless otherwise prohibited under State law.” Lastly, the maximum number of retail dispensary businesses allowed in the city limits is ten (10).

Below is Table 3.7-1 from Section 10-3.703 in Article 7 of Chapter 3 of Title 10 that indicates where allowed commercial cannabis business use types are specifically allowed to operate by zoning in the City of Modesto. Zone C-2 is the General Commercial zone, C-3 is Highway Commercial, C-M is Commercial-Industrial, M-1 is Light Industrial, and M2 is Heavy Industrial. “CCP” stands for Commercial Cannabis Permit and is required of all commercial cannabis businesses.
45 Los Angeles: According to Section 105.02 (a)(1)(B) of Article 5, Chapter X, in the Los Angeles municipal code, retailers (including non-storefront) must be:

Outside of a 700-foot radius of a Sensitive Use; and outside of a 700-foot radius of any other Retailer or Microbusiness Commercial Cannabis Activity, having on-site retail sales, which is licensed by the City to engage in the Commercial Cannabis Activity or for which Temporary Approval Application 46 or Business Premises Relocation fees, whichever is applicable, are paid pursuant to Los Angeles Municipal Code Section 104.19.

Sensitive Uses are defined as, “an Alcoholism or Drug Abuse Recovery or Treatment Facility, Day Care Center, Public Library, Public Park, School, and/or Permanent Supportive Housing.”
There is a buffer exception for non-storefront retail, in which they are not required to be beyond 700’ radius of a, “Public Park, Public Library, Alcoholism or Drug Abuse Recovery or Treatment Facility, Day Care Center, and Permanent Supportive Housing…[or] any other Retailer or Microbusiness Commercial Cannabis Activity having onsite retail sales.” Further, non-storefront has a 600’ buffer from schools.

Buffers between cannabis businesses are measured from the closest exterior walls while buffers from sensitive uses are from the closest exterior wall of the cannabis business to the closest parcel boundary of the sensitive use where the sensitive use has exclusive use of the parcel, or the closest exterior wall (or fence not associated with parking lot) of the sensitive use where it does not have exclusive use of the parcel.

In terms of zoning, retailers can locate in any of the following zones:
- Chapter I zoning: C1 Limited Commercial Zone, C1.5 Limited Commercial Zone, C2 Commercial Zone, C4 Commercial Zone, C5 Commercial Zone, CM Commercial Manufacturing Zone, M1 Limited Industrial Zone, M2 Light Industrial Zone, or M3 Heavy Industrial Zone
- Commercial Manufacturing (Glencoe/Maxella) Zone: CM (GM) Zone under the Glencoe/Maxella Specific Plan
- Central City West Specific Plan Zone: RC4 (CW) Residential Mixed-Use Category, RC5 (CW) Residential Mixed-Use Category, C1 (CW) Limited Commercial Category, C2 (CW) Commercial Category, C4 (CW) Commercial Category, or CM (CW) Commercial Manufacturing Category
- Warner Center Specific Plan Zone: WC Warner Center Specific Plan Zone where “Retail Store, general merchandise” or “Hybrid Industrial” uses are permitted - Los Angeles Sports and Entertainment District Specific Plan Zone - Playa Vista Specific Plan Zone: M (PV) Industrial Zone and M2 (PV) Industrial Zone
- Paramount Pictures Specific Plan Zone: Paramount Pictures Specific Plan Zone within the Lemon Grove Lot (Parcels A and B), South Bronson Lot, Windsor Lot, Camerford Lot, Waring Lot, and Gregory Lot (Parcels A and B) - USC Specific Plan Zone: USC Specific Plan Zone within Subarea 3 - Jordan Downs Urban Village Specific Plan Zone: CM (UV) Commercial Manufacturing Zone
- Cornfield-Arroyo Seco Specific Plan Zone: UC (CA) Urban Center, UI (CA) Urban Innovation, UV (CA) Urban Village Zones
47 Additionally, microbusinesses with onsite sales have a buffer of 700’ from sensitive uses and other such microbusinesses or retailers, manufacturing has a buffer of 600’ from schools with “Level 2” manufacturing also having a 200’ buffer from residential properties, testing has a 600’ buffer from schools, and distributors have a 600’ buffer from schools as well.

San Diego: According to Section 141.0504 (a) of Chapter 14, Article 1, Division 5 of the San Diego Municipal Code, “Cannabis outlets” (retail) shall maintain the following minimum separations (buffers):
(1) 1,000 feet from resource and population-based city parks, other cannabis outlets, churches, child care centers, playgrounds, libraries owned and operated by the City of San Diego, minor-oriented facilities, residential care facilities, and schools. For purposes of this section, school means any public or private institution of learning providing instruction in kindergarten or grades 1 to 12, inclusive, but does not include any private school in which education is primarily conducted in private homes. The distance shall be measured between the property lines, in accordance with Section 113.0225.
(2) 100 feet from the property line of a residentially zoned lot or premises.

The distance shall be measured horizontally in a straight line between the two closest points of the property lines without regard to topography or structures that would interfere with a straight-line measurement. “Cannabis production facilities” are essentially those involved in growing, processing, distributing, or otherwise producing cannabis products not involving sales to the public.

The buffers for these types of uses are the same as those of Cannabis outlets, except that there is no buffer required between other cannabis production facilities or cannabis outlets.

According to section 141.0504 of Chapter 14, Article 1, Division 5 of the San Diego Municipal Code, Cannabis Outlets may be permitted with a Conditional Use Permit in, “the zones indicated with a ‘C’ in the Use Regulations Tables in Chapter 13, Article 1 (Base Zones). No more than four cannabis outlets are permitted in each City Council District [9].” According to the Use Regulations Tables found in the various Base Zone Chapters, Cannabis Outlets are conditionally permitted in the following zones:
- Commercial Regional 2-1 (CR 2) - The CR zones are intended to accommodate large-scale, high intensity developments. Property within these zones will be primarily located along major streets, primary arterials, and major public transportation lines. CR-2-1 allows regional serving commercial and limited industrial uses with an auto orientation but no residential uses. - Commercial Office 2 (CO 2) - The CO zones are intended to apply in large-scale activity centers or in specialized areas where a full range of commercial activities is not desirable. CO 2 zones allow for limited residential development. - Commercial Community 2 (CC 2) - The CC zones are intended to provide for a range of development patterns from pedestrian-friendly commercial streets to 48 shopping centers and auto-oriented strip commercial streets. Some of the CC zones may include residential development. Property within the CC zones will be primarily located along collector streets, major streets, and public transportation lines. CC 2 zones allow community-serving uses with limited residential uses. - Industrial Light 3 zone (IL 3) - The purpose of the IL zone is to provide for a wide range of manufacturing and distribution activities. The development standards of this zone are intended to encourage sound industrial development by providing an attractive environment free from adverse impacts associated with some heavy industrial uses. The IL zones are intended to permit a range of uses, including nonindustrial uses in some instances. IL 3 allows a mix of light industrial, office, and commercial uses.
- Industrial Small Scale zone (IS) - The purpose of the IS zone is to provide for smallscale, multi-tenant, and flexible industrial activities within urbanized areas. It is intended that the IS zones permit a wide range of industrial and nonindustrial land uses to promote economic vitality and a neighborhood scale in development. The property development regulations of the IS zone are intended to accommodate the development of small and medium sized industrial and commercial activities by providing reduced lot area, landscaping, and parking requirements, and also by promoting pedestrian-oriented environments.
- International Business and Trade zone (IBT) - The purpose of the IBT zone is to provide for a wide variety of base sector industrial and office uses. It is intended to apply in portions of communities adjacent to the international border, other ports of entry, and areas in transition to higher intensity industries.

San Francisco: Section 202.2, of Article 2 of the San Francisco Planning Code indicates that Cannabis retail establishments shall not be located within:
[A] 600-foot radius of a parcel containing an existing School, public or private, unless a State licensing authority specifies a different radius, in which case that different radius shall apply. In addition, the parcel containing the Cannabis Retail Use shall not be located within a 600-foot radius of a parcel for which a valid permit from the City’s Office of Cannabis for a Cannabis Retailer or a Medicinal Cannabis Retailer has been issued, except that a Cannabis Retail Use may be located in the same place of business as one or more other establishments holding valid permits from the City’s Office of Cannabis to operate as Cannabis Retailers or Medicinal Cannabis Retailers, where the place of business contains a minimum of 350 square feet per Cannabis Retail or Medical Cannabis Dispensary Use, provided that such locations are permitted by state law. There shall be no minimum radius from a Cannabis Retail Use to an existing day care center or youth center unless a State licensing authority specifies a minimum radius, in which case that minimum radius shall apply.

This is also the same buffer for Medical Cannabis Dispensaries but there does not appear to be a city specific buffer for any other types of cannabis related uses. 49 In terms of zoning considerations, the San Francisco zoning districts that allow Cannabis Retail/ Sales Retail either by right (P) or conditionally (C) include the following:
- Production, Distribution and Repair Districts:
o PDR-1-B: District: Light Industrial Buffer (P)
o PDR-1-D: Design (P)
o PDR-1-G: General (P)
o PDR-2: Core- Production, Distribution, and Repair (P) - Commercial Districts
o C-2: Community District (P)
o C-3: Downtown Commercial District (P)
o C-3-0: Downtown Office District (P)
C-3-0 (SD): Downtown Office Special Development District (P) o C-3-R: Downtown Retail District (P)
o C-3-G: Downtown General Commercial District (P)
o C-3-S: Downtown Support District (P)
- Eastern Neighborhoods Mixed Use Districts
o CMUO – Central Soma Mixed Use- Office District (C)
o MUG -Mixed Use-General District (C)
o MUR – Mixed Use-Residential (P)
o SPD – South Park District Zone (C)
- M Districts: Industrial
o M-1 – Light Industrial District (P)
o M-2 – Heavy Industrial District (P)
- NC-S: Neighborhood Commercial Shopping Center District (C) - Broadway Neighborhood Commercial District: (C)
- Castro Street Neighborhood Commercial District (C)
- Inner Clement Street Neighborhood Commercial District (C) - Outer Clement Street Neighborhood Commercial District (C) - Upper Fillmore Street Neighborhood Commercial District (C) - Haight Street Neighborhood Commercial District (C)
- Excelsior Outer Mission Neighborhood Commercial District (C) - Japantown Neighborhood Commercial District (C)
- North Beach Neighborhood Commercial District (C)
- Polk Street Neighborhood Commercial District (C)
- Sacramento Street Neighborhood Commercial District (C) - Union Street Neighborhood Commercial District (C)
- Pacific Avenue Neighborhood Commercial District (C)
- 24th Street- NOE valley Neighborhood Commercial District (C) - West Portal Avenue Neighborhood Commercial District (C) 50 - Inner Sunset Neighborhood Commercial District (C)
- Noriega Street Neighborhood Commercial District (C)
- Irving Street Neighborhood Commercial District (C)
- Taraval Street Neighborhood Commercial District (C)
- Judah Street Neighborhood Commercial District (C)
- Inner Balboa Street Neighborhood Commercial District (C) - Outer Balboa Street Neighborhood Commercial District (C) - Bayview Neighborhood Commercial District (C)
- Cortland Avenue Neighborhood Commercial District (C)
- Geary Boulevard Neighborhood Commercial District (C)
- Mission Bernal Neighborhood Commercial District (C)
- San Bruno Avenue Neighborhood Commercial District (C) - Lower Haight Street Neighborhood Commercial District (C) - Lower Polk Street Neighborhood Commercial District (C) - Inner Taraval Street Neighborhood Commercial District (C) - Leiland Avenue Neighborhood Commercial District (C)
- NCT-2 Small-scale Neighborhood Commercial Transit District (C) - NCT-3 Moderate-scale Neighborhood Commercial Transit District (C) - Soma Neighborhood Commercial Transit District (C)
- Mission Street Neighborhood Commercial Transit District (C) - Ocean Avenue Neighborhood Commercial Transit District (C) - Glen Park Neighborhood Commercial Transit District (C) - Folsom Street Neighborhood Commercial Transit District (C) - Regional Commercial District C)
- Divisadero Street Neighborhood Commercial Transit District (C) - Fillmore Street Neighborhood Commercial Transit District (C) - Hayes-Gough Neighborhood Commercial Transit District (C) - Valencia Street Neighborhood Commercial Transit District (C) - 24th Street Neighborhood Commercial Transit District (C) - Upper Market Street Neighborhood Commercial Transit District (C) 51 52
53 54
55 56
▪▪▪▪▪▪
57 58
59 60
61 62
63 64
65 66
67 ▪▪▪▪▪▪
68 City From
residential
From
all other
sensitive
From other
storefront
Other
Fresno 800' 800’ 1,000’ from residential for
non-retail uses
Modesto 100’ 600' 200’ from parks, libraries
Los Angeles 700' 700’
San Diego 100’ 1,000' 1,000’
San Francisco 600' 600’
69 ▪▪▪▪▪
70 ▪▪
71 ▪▪▪▪▪▪
72 ••
73 74
75 ▪▪▪
76 77
78 79
80 81
82 83
84 ▪▪▪
85 86
Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 25-0270 Agenda Date: 7/21/2025 Agenda #: 5.

Agenda Item Wording:

Surplus Policy - Review current General Fund surplus policy and consider making revisions to the policy.

Prepared by: Renee Nagel, Finance & Technology Director 713-4475, [email protected] Amee Swearingen, Budget Analyst 713-4170, [email protected] Department Recommendation: Review current General Fund surplus policy and provide direction for revisions to the policy to be effective for FY 24/25, for future fiscal years, or to leave as is Council’s current policy.

Summary:

On June 16, 2025, staff presented to Council the Mid Cycle Budget report which included updated projections for FY 2024/25 and 2025/26 for the General Fund. During the presentation, staff reviewed the current surplus policy and was directed to come back to Council for further discussion on possible revisions to the surplus policy.

Background Discussion:

The current General Fund emergency reserve and surplus policy was amended in March 2024. The policy states that any revenues in excess of actual expenditures would first be deposited in the emergency reserve to maintain the reserve at a maximum of 30% of operating expenditures and then all remaining surplus is to be deposited into the Civic Center Reserve Fund. The surplus policy also states that all one-time monies and land sales not otherwise required to be allotted to specific funds, will be deposited in the Civic Center Fund.

On June 16th, the projected surplus for FY 2024/25 was $5.4 million. Council appropriated $2.6 million in capital projects that night, leaving the surplus to be $2.8 million. Based on the Mid-Year Budget projections, $2.1 million of the surplus will need to be transferred at year end keeping the reserves at 30% of operating expenditures. The $2.1 million transfer will bring the reserve balance to $25.8 million.

Surplus Policy:

Once the emergency reserve has been funded, any remaining surplus at year-end is to be deposited to the Civic Center/Public Safety Reserve Fund (003) per Council’s Surplus Policy. The year-end surplus is projected to be $0.7 million as shown in Table 1: GF FY 24/25 Projected Surplus. These numbers are projected; the amount transferred at year-end will depend upon the actual ending fund balance as of June 30, 2025. Based on revenues coming in a little higher, interest earnings being up and continued vacancies, staff is anticipating the surplus to be larger than the projected amount presented at mid-cycle (which was calculated using the first 6 months of actuals). Staff is estimating that the FY 24/25 GF surplus will be closer to $2.5 million.

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File #: 25-0270 Agenda Date: 7/21/2025 Agenda #: 5.

Table 1
GF FY 24/25 Projected Surplus
(All Amounts in Millions)
FY 24/25 Projected GF Surplus* $ 5.4
Additional Amount Required to remain at 30% (2.1)
Additional Capital Appropriated (2.6)
Projected Remaining Surplus $ 0.7
*Note: Projection is using Mid-Year numbers which is based on the first 6 months of actuals
The surplus policy can be changed at any time by Council, however, if Council desires to change it for the FY 24/25 surplus, this change will need to occur before September 1st. If no changes are made to the surplus policy for FY 24/25, the available balance in the Civic Center/Public Safety Reserve will be $7.9 million ($7.2 million currently available in the Civic Center Fund + $0.7 million FY 24/25 projected GF surplus). On May 5, 2025, Council appropriated $70.4 million for the Civic Center Phase II Project leaving $7.2 million in fund balance for project changes or to eventually begin design on the Civic Center.

Going forward, staff is looking to Council to provide direction on where they would like to deposit surplus funds. In the past, these funds have played a vital role in being able to purchase and develop the Riverway Sports Park, purchasing the East Regional Park land, Recreation Park Stadium Improvements,198 Open Space, and now constructing the Civic Center Phase II which includes a Council Chamber, Public Safety Building, Evidence Building, and infrastructure for the entire campus.

The City has many more projects that are needed and have been deferred due to funding priorities.

To name a few that have been mentioned over the years is constructing East Regional Park, Corp Yard expansion, a pool complex, purchasing land for the third regional park, a Convention Center refresh and expansion, public art, a multi-purpose recreation facility, and the final phase of the Civic Center including the Administration building and the Civic Center park. In addition, there are road projects, such as the extension of Santa Fe, that will need to be funded and do not qualify for impact fees.

Large projects are difficult to fund in any given year due to funding availability. A majority of the surplus is typically from vacancy savings which can be set aside to fund large projects. The surplus can be set-aside for one project or split amongst multiple by having a policy that assigns a percentage of the surplus to each project.

Fiscal Impact: None
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File #: 25-0270 Agenda Date: 7/21/2025 Agenda #: 5.

Prior Council Action: N/A
Other: N/A
Alternatives: None
Recommended Motion (and Alternative Motions if expected):

I move to continue with the current surplus policy (fund Emergency Reserves and the Civic Center Fund) for FY 24/25 and future surpluses.

Or
I move to approve surplus policy as revised for FY 24/25 and future surpluses to include funding the Emergency Reserves to 30% and then (Council to insert priorities and percentages).

Or
I move to approve surplus policy as revised for future surpluses (after FY 24-25) to include funding the Emergency Reserves to 30% and then (Council to insert priorities and percentages).

Environmental Assessment Status: N/A
CEQA Review: N/A
Deadline for Action: 6/30/2025
Attachments: None
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S U R P L U S P O L I C Y
J U L Y 2 1 , 2 0 2 5
90 S U R P L U S &

E M E R G E N C Y

R E S E R V E S

P O L I C Y
• All surpluses be deposited
into Emergency Reserve to
maintain fund at a maximum 30%
of operating expenditures.
• Remaining surplus be deposited
into the Civic Center/Public
Safety Reserve Fund for future
buildings
• 1-time monies & land sales be
deposited into the Civic
Center/Public Safety Reserve
Emergency Reserve Balance as of 7/1/24 $ 22.7
Estimated Interest Earnings 1.0
Additional Amount Required to remain at 30% 2.1
Projected Emergency Reserve at 6/30/25 $ 25.8
GF Emergency Reserve Balance
FY 24/25 Projected GF Surplus $ 5.4
Additional Amount Required to remain at 30% (2.1)
Additional Capital Appropriated (2.6)
Projected Remaining Surplus $ 0.7
91 S U R P L U S
• Current Policy – Surplus
will be deposited into the
Civic Center/PS Fund
bringing the projected
available total to $7.9
million.
• This policy can be changed
at anytime. However, FY
24/25 must be changed no
later than Sept. 1, 2025
• Policy Changes - Previous
policies were based on setting
aside funds for large
projects:
• Riverways Sports Park
• East Regional Park Land
Acquisition
• Recreation Park Stadium
Improvements
• 198 Open Space Land
Acquisition
• Surplus can be split amongst
several projects based on a
percentage, if desired
92 P O T E N T I A L S U R P L U S F U N D I N G

O P T I O N S
• Potential Future Projects:
• East Regional Park
• Corp Yard Expansion
• Pool Complex
• Purchasing land for a third regional park
• Convention Center refresh and expansion
• Public Art
• Multi-purpose Recreation Facility
• Final Phase of the Civic Center (Admin Building and Park) • Road projects (Santa Fe)
93 QUESTIONS
Staff Recommends:
• Move to continue with the current surplus policy (fund Emergency Reserves and the Civic Center Fund) for FY 24/25 and future surpluses.

Or
• Move to approve surplus policy as revised for FY 24/25 and future surpluses to include funding the Emergency Reserves to 30% and then (Council to insert priorities and percentages).

Or
• Move to approve surplus policy as revised for future
surpluses( after FY 24/25) to include funding the Emergency Reserves to 30% and then (Council to insert priorities and percentages)

R E C O M M E N D E D M O T I O N
94 Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 25-0130 Agenda Date: 7/21/2025 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 #: 25-0105 Agenda Date: 7/21/2025 Agenda #: 2.

Agenda Item Wording:

Open Space District No 25-02 - Adopt Resolution No. 2025-36 and 2025-37 authorizing the intention and formation of Open Space District No 25-02 located at 3234 E. Roosevelt Ave.

Deadline for Action: 7/21/2025
Submitting Department: Community Development
Contact Name and Phone Number:

Jesus R. Carreno Nunez, Asst. Engineer, [email protected], (559)713-4268 Adrian Rubalcaba, Sr. Project Manager, [email protected], (559) 713-4507 Jason Huckleberry, Engineering & Building Director, [email protected] (559) 713-4495 Department Recommendation:

Staff recommends that City Council adopt Resolution No. 2025-36 and 2025-37 authorizing the intention and formation of Open Space District No 25-02.

Summary:

A single-family dwelling is being proposed on a vacant lot located at 3234 E. Roosevelt Avenue. The parcel is located in the Northwest Specific Plan area and is required to be annexed into the Northeast Open Space District upon development or subdivision. A building permit to construct the custom home was submitted and approved by the city in July 2024. The project will include public improvements such as curb, gutter, and sidewalk along its Roosevelt Avenue street frontage.

Background Discussion:

In 1988, City Council adopted an update to the original 1979 Northeast Area Specific Plan (NASP).

The specific plan lays the groundwork for required public improvements specific to the Northeast area and the maintenance thereof. The improvements consist of sidewalks/bike paths, center medians, frontage landscaping, and decorative block walls. Policies 5 & 6 and Goal 5 of the NASP speak to the issue of formation of maintenance districts and collection of fees for all development in the Northeast Plan area.

Open Space Districts are formed to incorporate the specific improvements into the NASP, and for the collection of fees for maintenance of the overall improvements. Unlike Landscape and Lighting Districts (L&LD), the improvements incorporated into the NASP are a benefit to the area as a whole and not just the individual subdivision development sites. A subdivision development project may also be subject to both Landscape and Lighting and Open Space Districts within the NASP; however, this is not the case for a single parcel development.

The NASP improvements that are maintained through the Open Space Districts include bike paths, frontage landscaping, decorative block walls, and any center medians installed with the subdivision.

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File #: 25-0105 Agenda Date: 7/21/2025 Agenda #: 2.
3234 E. Roosevelt Ave. is located within the Northeast District area and is conditioned to contribute to the maintenance of Northeast area improvements. This will be accomplished through the formation of an Open Space District. Since the improvements are meant to be for the enjoyment and enhancement of the NASP, every lot formed is levied the same amount of $44.28 annually; collected with the assessment of property taxes by the County of Tulare. The owner(s) of all land within the boundaries of the proposed Open Space District have filed a petition with the City requesting that an Open Space District be formed and have given their consent to the formation of the proposed district.

Fiscal Impact:

One (1) parcel will start contributing to the Open Space District (No 25-02) created for maintenance of common features related to this project. The annual lot assessment will be $44.28 per lot.

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

I move to authorize the adoption of Resolution Nos. 2025-36 and 2025-37 for the intention and formation of Open Space District No. 25-02, located at 3234 E. Roosevelt Ave.

Environmental Assessment Status: Exempt pursuant to Section 15315.

CEQA Review: None
Attachments:

1. Location Map

2. Resolutions
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98 RESOLUTION NO. 2025-36

A RESOLUTION OF THE VISALIA CITY COUNCIL

A RESOLUTION OF INTENTION TO FORM
OPEN SPACE DISTRICT NO. 25-02
PARCEL 2 OF PM 5407
BE IT RESOLVED by the City Council of the City of Visalia, California, that:

1. In its opinion, the public interest and convenience require, and it is the intention of said Council to order the formation of a maintenance district in a portion of said City, pursuant to Title 12, Chapter 12.40 of the Ordinance Code of the City of Visalia, to be designated “Open Space District No. 25-02”, by which name it shall hereafter be referred to and all subsequent proceedings, including the proceedings for the levy and collection of charges.

2. Said maintenance district, and the boundaries thereof, benefited and to be assessed for the maintenance and operation of improvements hereinafter referred to, are situated in the Northeast Specific Plan Area, City of Visalia, County of Tulare, State of California, and are particularly described on the attached map Exhibit A, and by this reference incorporated herein.

3. It is ordered that the expense of maintaining and operating parks and parkways, and appurtenance thereto, including, but not limited to, walkways, crosswalks, steps, safety zones, parking areas, platforms, seats, statuary, fountains, certain fencing, drainage facilities; poles, posts, wire, lights, conduits, tunnels, ramps and other suitable or necessary appliances for the purposed of lighting said places or public ways; water mains or sprinkler systems; and ornamental planning including lawns, shrubs and trees, all as now exist or may hereafter be constructed in or for said Maintenance District, and a benefit to said Maintenance District but not to benefit the City of Visalia as a whole, including the cost of necessary repairs, replacements, fuel, power, electric current, care, supervision and any and all other items necessary for the proper maintenance and operation thereof, shall be charged to the owners of residential units within said Maintenance District above described. Council has hereby determined that said district will benefit by the maintenance and operation of said improvements and that the amount of $44.28 per year will be charged and shall be collected either by billing by the City of Visalia or collected with property taxes by the County of Tulare.

PASSED AND ADOPTED: July 21, 2025 LESLIE B. CAVIGLIA, CITY CLERK

STATE OF CALIFORNIA )
COUNTY OF TULARE ) ss.

CITY OF VISALIA )
I, Leslie B. Caviglia, City Clerk of the City of Visalia, certify the foregoing is the full and true Resolution 2025-36 passed and adopted by the Council of the City of Visalia at a regular meeting held on July 21, 2025.

Dated: July 21, 2025 LESLIE B. CAVIGLIA, CITY CLERK
By Reyna Rivera, Chief Deputy City Clerk
99 RESOLUTION NO. 2025-37

RESOLUTION ORDERING THE FORMATION OF
OPEN SPACE DISTRICT NO. 25-02
PARCEL 2 OF PM 5407
WHEREAS, pursuant to Title 12, Chapter 12.40 of the Ordinance Code of the City of Visalia, California, the City Council of said City did adopt resolution of intention to form Open Space District No. 25-02 in said CITY; and
WHEREAS, owners of all land within the boundaries of the proposed Open Space District No. 25-02 have filed their consent to the formation of the proposed district; and WHEREAS, said Council did declare by adopting said resolution its intention to order, at the expense of maintaining and operating parks, parkways and appurtenance thereto, including, but not limited to; walkways, crosswalks, steps, safety zones, parking areas, platforms, seats, statuary, fountains, certain fencing, drainage facilities; poles, posts, wire, lights, conduits, tunnels, ramps and other suitable or necessary appliances for the purposes of lighting said places or public ways; water mains or sprinkler systems; and ornamental planting including lawns, shrubs and trees, all as now exist or may hereafter be constructed in or for said Maintenance District, and a benefit to said Maintenance District but not to benefit the City of Visalia as a whole, including the cost of necessary repairs, replacements, fuel, power, electric current, care, supervision and any and all other items necessary for the proper maintenance and operation thereof, shall be charged to the owners of residential units within said Maintenance District above described, which district said Council hereby determined will be a district benefited by the maintenance and operation of said improvements and that the amounts so charged are to be collected through billing by the City or with property taxes collected by the County of Tulare.

NOW, THEREFORE HEREBY BE IT RESOLVED and ordered as follows:

1. That the public interest and convenience require and a maintenance district is hereby formed for the maintenance and operation of parks and parkways and appurtenances thereto, including, but not limited to walkways, crosswalks, steps, safety zones, parking areas, platforms, seats, statuary, fountains, certain fencing, drainage facilities; poles, posts, wire, lights, conduits, tunnels, ramps and other suitable or necessary appliances for the purpose of lighting said places or public ways; water mains or sprinkler systems; and ornamental planting including lawns, shrubs and trees, all as now exist or may hereafter be constructed in or for said Maintenance District, and a benefit to said Maintenance District but not to benefit the City of Visalia as a whole, which district said Council hereby determines will be the district benefited by the maintenance operation of said improvements.

2. That said district be, and is hereby designated as “Open Space District No. 25-02”, by which name it shall hereafter referred to in all subsequent proceedings, including proceedings for the collection of charges in the amount of $44.28 per year; that such charges be collected either by billing by the City of Visalia or collected with property taxes by the County of Tulare. 100

3. That the district and the boundaries thereof benefited and to be assessed for the maintenance and operation of the improvements described are situated in Tulare County, State of California, City of Visalia and are particularly described on the attached map Exhibit A, and by this reference incorporated herein.

PASSED AND ADOPTED: July 21, 2025 LESLIE B. CAVIGLIA, CITY CLERK

STATE OF CALIFORNIA )
COUNTY OF TULARE ) ss.

CITY OF VISALIA )
I, Leslie B. Caviglia, City Clerk of the City of Visalia, certify the foregoing is the full and true Resolution 2025-37 passed and adopted by the Council of the City of Visalia at a regular meeting held on July 21, 2025.

Dated: July 21, 2025 LESLIE B. CAVIGLIA, CITY CLERK
By Reyna Rivera, Chief Deputy City Clerk
101
Exhibit “A”
Open Space District No. 25-02
PARCEL 2 PM 5407
Fiscal Year 2025-26
APN # Assessment Parcel # District Open Space
103-330-103 $44.28 2 PM 5407 No. 25-02
102
Exhibit “A”
Open Space District No. 25-02
PARCEL 2 PM 5407
Fiscal Year 2025-26
103
Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 25-0201 Agenda Date: 7/21/2025 Agenda #: 3.

Agenda Item Wording:

Design Contract Award and Appropriation of Funds - Authorize the City Manager to award the design contract to Peters Engineering Group for the Houston Community Connectivity Project in the amount of $258,705 and authorize the additional appropriation of funds in the amount of $330,000 from the Measure R Local Fund (131).

Prepared by:

Rudy Lopez, Associate Engineer, [email protected], 713-4270 Rebecca Keenan, Senior Civil Engineer, [email protected], 713-4541 Chris Crawford, City Engineer, [email protected], 713-4331 Jason Huckleberry, Engineering and Building Department Director, [email protected], 713-4495
Department Recommendation:

Staff recommends City Council:

1. Authorize the City Manager to award the design contract to Peters Engineering Group for the Houston Community Connectivity Project in the amount of $258,705, and

2. Authorize an additional appropriation of funds in the amount of $330,000 from the Measure R Local Fund (131) for the Plans, Specifications & Estimates (PS&E) and Right of Way (ROW) of the Houston Community Connectivity Project.

Summary:

This project will provide safe crossings to and from Houston Elementary school, Construction of 5,700 linear feet of missing sidewalk gaps in surrounding small adjacent streets. The proposed improvements will include the construction of protected bike lanes Class II and Class IV along the north and south side of W. Houston Avenue, retrofitting of the existing and non-existing curb returns to comply with Americans with Disabilities Act (ADA) and Public Right-of-Way Accessibility Guidelines (PROWAG) requirements, intersections modifications such as crosswalks with flashing beacons and bulb out configurations for safe pedestrian crossing. This project also needs the additional appropriation of funds in the amount of $330,000 to subsidize the PS&E and ROW phases of the project and staff time for the two phases.

At this time, as per their design agreement, Peters Engineering Group has prepared a lump sum cost proposal of $258,705.00.

Background Discussion:

On May 16, 2022, the City Council authorized the City Manager to submit funding application for the 2023 Active Transportation program (ATP) Cycle 6 for The Houston Community Connectivity Project.

Project Description and Scope:

Cycle 6 2023 Active Transportation program (ATP) included The Houston Community Connectivity Project on the California Transportation Commission’s (CTC) list of awarded projects. The Houston Visalia City Council Page 1 of 5 Printed on 7/18/2025
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File #: 25-0201 Agenda Date: 7/21/2025 Agenda #: 3.

Project on the California Transportation Commission’s (CTC) list of awarded projects. The Houston Community Connectivity Project is an improvement project within the Houston Elementary attendance boundary in north Visalia consisting of multimodal improvements. These improvements include the construction of protected bike lanes Class II and Class IV along north and south side of W. Houston Avenue, construction and reconstruction of ADA/PROWAG compliant curb returns in multiple intersections from N. Mooney Blvd. to N. Stevenson St. with assigned bulb out configurations in specific locations. Construction of 5,700 linear feet of missing sidewalk gaps around Houston Elementary School small adjacent streets such as N. Rinaldi St., W. Switzer St. W. Goshen Ave., N.

Jacob St., W. Allen Ave., and N. Turner St. Other modifications to the intersections consist of safe crossings pedestrian rails and restriping of intersection crosswalks with flashing beacons.

The Houston Community Connectivity Project is expected to slow down vehicular traffic, make pedestrians and bikes more visible through the intersections, and reduce crossing distances. The project is also expected to provide safe street crossings to and from Houston Elementary school and sidewalk walking paths creating continuous connecting points for students walking to and from home, school, surrounding shopping centers and recreational areas.

Consultant Selection Process.

On April 25, 2025, the City Council awarded the on-call civil engineering services contract for RFQ 24 -25-29 to six (6) civil engineering consultants consisting of Peters Engineering Group, 4 Creeks, Inc., Provost & Pritchard Consulting Group, TRC Engineers, Inc., Lane Engineers, Inc., and CWE.

For the Houston Community Connectivity Project, a mini-RFP was sent to all six (6) Consultants to participate in this project and four (4) submitted a proposal.

1. Peters Engineering Group

2. 4 Creeks, Inc.

3. TRC Engineers, Inc.

4. CWE
The mini-RFP review committee evaluated and scored the proposals based on the selection criteria outlined in the mini-RFP. Peters Engineering Group was determined to be the most qualified for the project, ranked the highest consultant from the proposals received, based on the consultants’ proposed approach to the scope of work and their qualifications.

Peters Engineering Group has successfully worked on past city projects such as the St. Johns & Burke St. Traffic Signal Design and the Riggin Ave. Giddings & Conyer Traffic Signals.

Following a review of their proposal, refinement of scope, and negotiation of fee, Peters Engineering Group total design fee of $258,705.00 is determined to be reasonable.

Public Outreach
Engineering staff conducted public outreach to gather input and feedback from the community to ensure the community’s needs are addressed. The public outreach conducted included:
· 3 Online Surveys - 4/4/22 to 4/18/22
· 1 Pop Up Event
o Senior Center - 4/13/22
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File #: 25-0201 Agenda Date: 7/21/2025 Agenda #: 3.
· 2 Public Workshops
o Houston Elementary Afterschool Program - 4/5/22
o Senior Center - 4/6/22
Engineering staff will conduct one last public outreach at the completion of 30% design deliverable, to ensure the community input and feedback are considered before moving forward on design and future construction of the project.

Budget Deficit
During the collection of documents and calculation for construction in the original estimate in the submitted ATP application of 2023, the allocation of funds consisted of $200,000 for PS&E (phase II) and $10,000 for ROW (Phase III).

Staff has updated the original project budget and identified a funding deficit in the PS&E (Phase II) and ROW (Phase III). This is because the project’s original estimate for the ATP allocation of funds underestimated the amount of TOPO work required for the project, since the scope of work consists of multiple locations with many variations in design for missing sidewalk gaps in minor streets and for the ADA/PROWAG compliant ramps. Also, the original budget estimate for this project reflected costs that did not anticipate increases in labor and materials costs now in 2025 due to inflation and other factors.

The allocation of funds requested in the ATP application of 2023 for the amounts of $200,000 for PS&E (phase II) and $10,000 for ROW (Phase III) will not be enough to cover the newly calculated costs for these two phases, therefore the allocation of extra funds is requested in this report.

Staff anticipate that there is sufficient funding in place for the remaining project phase for construction. The grant includes $2.1 million to fund construction costs, and the calculated budget for the increased scope of work is estimated to be within that amount. However, since bid climates change frequently, staff will work with the consultant to structure the construction bid package with a Base Bid and various Alternate Bids. The Base Bid will include the Houston Avenue corridor, as submitted in grant application, and any needed or recommended extra work items to create a more complete pedestrian route to and from Houston Elementary School. These details will be worked out with the consultant through the design process. The Alternate Bids will be focused on the areas of the project further away from the Houston Elementary School such that if eliminated from the scope of work these deductions still meet the minimum requirements stipulated per the ATP application.

Setting up the project in this manner facilitates budget management and will allow the City to stay within the allocated grant funds for construction.

Fiscal Impact:

The Houston Community Connectivity Project is funded through the ATP state grant. ATP grant funds are allocated for each specific phase of the project. Staff have recalculated costs for each of the phases of the project, PA&ED, PS&E and ROW, estimating more defined costs. Table 1 shown below lists the grant funds approved and for each project phase. Table 2 shown below lists the incurred and calculated projected costs for the current phases of the project, PS&E and ROW.

Visalia City Council Page 3 of 5 Printed on 7/18/2025
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File #: 25-0201 Agenda Date: 7/21/2025 Agenda #: 3.

Table 1. Grant Budget.

Table 2. Incurred & Calculated Costs for Phases II - III.

The project has been re-estimated and the calculation and assessment of costs for the PS&E (Phase II) and ROW (Phase III) show a budget deficit of $323,705, for which the additional appropriation of $330,000 will suffice to cover the costs for the design, incurred staff time as of today, plus the estimated staff time needed during the design phase of this project.

Staff recommends the additional appropriation of funds in the amount of $330,000 from the Measure R Local Fund (131).

Prior Council Action:

May 16, 2022: The City Council authorized the submission of funding application for the ATP funding (Cycle 6) and the city was awarded $2,385,000 for the Houston Community Connectivity Project.

April 21, 2025: The City Council authorized the City Manager to execute a one-year contract with Civil Engineering Consultant Peters Engineering Group and place the firm on an on-call list to provide civil engineering and related services in support of the City’s Capital Improvement Projects.

Other:

None
Visalia City Council Page 4 of 5 Printed on 7/18/2025
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File #: 25-0201 Agenda Date: 7/21/2025 Agenda #: 3.

Alternatives:

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

I move to authorize the City Manager to:

1. Award the design contract to Peters Engineering Group for The Houston Community Connectivity Project in the amount of $258,705.00, and

2. Authorize an additional appropriation of funds in the amount of $330,000 from the Measure R Local Fund (131) for the Plans, Specifications & Estimates (PS&E) and Right of Way (ROW) of the Houston Community Connectivity Project.

Environmental Assessment Status:

CEQA Exemption - 2024-11
Deadline for Action:
06-01-26 (PS&E CTC Allocated funds are available for expenditure until June 30, 2026) Attachments:

1. Project Location Exhibit

2. Peters Engineering Group Ownership Disclosure Form

3. Draft Contract
Visalia City Council Page 5 of 5 Printed on 7/18/2025
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N. MOONEY BLVD.

N. LESLIE ST.

N. DIVISADERO ST.

N. HALL ST.

W. GOSHEN AVE.

W. MURRAY AVE.

N. RINALDI ST.

W. GOSHEN AVE.

N. MOONEY BLVD.

N. LESLIE ST.

N. DIVISADERO ST.

N. HALL ST.

N. RINALDI ST.

N. PARK ST.

N. GIDDINGS ST.

N. TURNER ST.

N. JACOB ST.

N. CONYER ST.

N. STEVENSON ST.

N. HIGHLAND ST.

N. WILLIS ST.

N. DINUBA BLVD.

W. HOUSTON AVE. W. HOUSTON AVE. W. HOUSTON AVE. W. HOUSTON AVE. N. RINALDI ST.

W. SADY AVE.

W. GROVE AVE.

N. HALL ST.

W. MURRAY AVE. W. SWITZER AVE.

N. HALL ST.

W. GOSHEN AVE.

W. SWITZER AVE.

N. RINALDI ST.

N. GIDDINGS ST.

N. DUDLEY ST.

N. JACOB ST.

N. TURNER ST.

N. TURNER ST.

W. ALLEN AVE.

W. ROOSEVELT AVE.

W. GROVE AVE.

W. MURRAY AVE.

N. JACOB ST.

W. GOSHEN AVE.

W. MURRAY AVE.

W. SCHOOL AVE.

W. SWEET AVE.

W. HAROLD AVE.

W. PROSPECT AVE. N. JACOBS ST.

N. OAK PARK ST.

HOUSTON COMMUNITY CONNECTIVITY PROJECT

LOCATION MAP

HOUSTON AVE

MOONEY BLVD

DINUBA BLVD

MURRAY AVE
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On-Call Civil Engineering Services
RFQ NO. 24-25-29

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

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

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

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

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

NOTICE: The disclosure duty under state law continues for twelve (12) months after the award. If the above information regarding contributions changes during this time after the award, then the awardee is required to update this disclosure form.
_________________________________________________________________________________ Print or Type Name of Bidder/Proposer/Contractor/Consultant/Supplier/Vendor/Company __________________________________________ ____________________________________ Signature of Company Authorized Individual Print or Type Name of Authorized Individual Peters Engineering Group
862 Pollasky Ave, Clovis CA 93612
X
Peters Engineering Group
David Peters
David Peters
Sheryl Peters
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PROFESSIONAL SERVICES AGREEMENT
Professional Design Services
For Houston Community Connectivity Project
This Agreement, entered into this ________ day of ________________, 20____, by and between the City of Visalia, hereinafter referred to as the “CITY”, and ____________________________ hereinafter referred to as the “CONSULTANT”.

W I T N E S S E T H
WHEREAS, the CITY is authorized and empowered to employ consultants and specialists in the performance of its duties and functions; and
WHEREAS, the CITY has the desire to secure certain technical and professional services to assist in the preparation and completion of the items of work described as “Scope of Work” in mini-RFP released 04/29/2025, which is attached as Exhibit “A”, and hereinafter referred to as the “PROJECT”; and WHEREAS, the CONSULTANT represents it is licensed, qualified and willing to provide such services pursuant to terms and conditions of this Agreement.

NOW, THEREFORE, CITY and CONSULTANT agree as follows:

I. SERVICES TO BE PERFORMED BY THE CONSULTANT
A. Authorized Scope of Work: The CONSULTANT agrees to perform all work necessary to complete in a manner satisfactory to the CITY those tasks described in Exhibit “A” - Scope of Work, which shall be the Scope of Work for the project as described in mini-RFP, unless the parties agree in writing to modify the Scope of Work as stated in the mini-RFP, for the cost identified in Exhibit “B” - Project Schedule of Fees.

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

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

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

CONSULTANT shall not be responsible for delays which are due to causes beyond the CONSULTANT’s reasonable control. In the case of any such delay, the time of completion shall be extended accordingly in a writing signed by both parties.
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III. COMPENSATION
A. Total Compensation: For services performed pursuant to this Agreement, the CITY agrees to pay and the CONSULTANT agrees to accept, a lump sum amount of _______________________________________ dollars ($ ) as shown in Exhibit “B”.

This amount shall constitute complete compensation, including document production and out-of-pocket expenses for all services for the work and PROJECT identified in Exhibits “A” and “B”. CONSULTANT agrees these amounts, as authorized, will constitute complete compensation, including document production and out-of-pocket expenses, for services authorized by CITY for the PROJECT per the Scope of Work, Project Fees, and Schedule identified in Exhibit “A”, “B”, and “C”, respectively. No other compensation is authorized by this Agreement without separate written amendment.

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

IV. AUTHORIZED REPRESENTATIVE
A. CITY: The City Engineer, shall represent the CITY in all matters pertaining to the services to be rendered under this Agreement, except where approval of the City Council of the City of Visalia is specifically required.

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

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

A. Termination By Either Party Without Cause: The CITY or CONSULTANT may terminate this Agreement at any time by giving written notice to the other of such termination and specifying the effective date thereof, at least thirty (30) days before the effective date of such termination.

B. Termination of Agreement for Cause: The CITY may by written notice to the CONSULTANT specifying the effective date thereof, at least thirty (30) days before the effective date of such termination, terminate the whole or any part of this Agreement in any of the following circumstances:

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

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

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

2. Except with respect to defaults of sub-consultants, the CONSULTANT shall not be liable for any excess costs if the failure to perform this Agreement arises out of causes beyond the control and without the fault or negligence of the CONSULTANT. Such causes include, but are not limited to, acts of God or of the public enemy, floods, epidemics, quarantine restrictions, strikes, and unusually severe weather; but in the event the failure to perform is caused by the default of a sub-consultant, the CONSULTANT shall not be liable for failure to perform, unless the services to be furnished by the sub-consultant were obtainable from other sources in sufficient time and within budgeted resources to permit the CONSULTANT to meet the required delivery schedule or other performance requirements.

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

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

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

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

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

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

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

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

CONTRACTOR REGISTRATION PROGRAM AND PROJECT LABOR AGREEMENTS Notice is hereby given that this is an Engineering Project. All contractors and subcontractors bidding and performing work on Engineering Projects (including Consultants and Sub-Consultants who employ or subcontract workers to perform any trade that has a prevailing wage designation such as surveyor) must:

A. Register on an annual basis with the California Department of Industrial Relations (DIR) B. Furnish electronic payroll records for new projects to the Labor Commissioner.

All contractors and consultants are to be registered at time of bid/proposal submittal and remain registered with the California Department of Industrial Relations (DIR) throughout the duration of this Agreement.

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

VIII CITY OF VISALIA LABOR COMPLIANCE MANUAL
Consultant shall comply with the City of Visalia Labor Compliance Manual which is attached to this Agreement as Exhibit “D” and available at visaliapurchasing.org.

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

X. SUBCONTRACTING
A. The CONSULTANT shall not subcontract or otherwise assign any portion of the work to be performed under this Agreement without the prior written approval of the CITY.

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

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

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

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

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

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

Notwithstanding the foregoing, however, the CONSULTANT shall not be required to protect or hold in confidence and confidential information which (1) is or becomes available to the public with the prior written consent of the CITY; (2) must be disclosed to comply with law; or (3) must be disclosed in connection with any legal proceedings.

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

Should CONSULTANT place a copyright notice on documents it must state, “City of Visalia holds a nonexclusive and irrevocable license to reproduce, publish, or otherwise use, and to authorize others to use the material for government or public purposes.” XIV. INDEMNIFICATION AND INSURANCE
As respects acts, errors, or omissions in the performance of services, CONSULTANT agrees to indemnify and hold harmless CITY, its elected and appointed officers, and employees from and against any and all claims, demands, losses, reasonable defense costs, or liability, whether actual, alleged, or threatened, that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the CONSULTANT in the performance of his/her services under the terms of this Agreement, except to the extent those arise out of the negligence of CITY.

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

B. As respects all acts or omissions which do not arise directly out of the performance of services, including but not limited to those acts or omissions normally covered by general 115
and automobile liability insurance, CONSULTANT agrees to indemnify, defend (at CITY’s option), and hold harmless CITY, its elected and appointed officers, agents, employees, representatives, and volunteers from and against any and all claims, demands, reasonable defense costs, or liability of any kind or nature arising out of or in connection with CONSULTANT’s (or CONSULTANT’s subcontractors, if any) performance or failure to perform, under the terms of this Agreement; except to the extent those which arise out of the negligence of CITY.

C. Notwithstanding any other provision of this Agreement, and to the fullest extent permitted by law, neither the CITY nor the CONSULTANT, their respective officers, directors, partners, employees, contractors or subconsultants shall be liable to the other or shall make any claim for any remote or speculative breach of contract damages that the breaching party could not have reasonably foreseen when entering into this Agreement.

To the extent this Agreement is considered a “Construction Contract” as defined by California Civil Code section 2783, CONSULTANT’s duty to indemnify CITY under this or any other provision of the Agreement shall not apply when to do so would be prohibited by California Civil Code section 2782.

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

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

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

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

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

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

F. CONSULTANT agrees to provide thirty (30) days written notice of any policy cancellation, limitation in scope or coverage, or non-renewal. Such notice shall be provided to the, City of Visalia, 707 W. Acequia, Visalia, CA 93291.

In addition, the commercial general liability and comprehensive automobile liability policies required by this Agreement shall contain the following clauses:
“It is agreed that any insurance maintained by the City of Visalia shall apply in excess of and not contribute with insurance provided by this policy.” “The City of Visalia, its officers, agents, employees, representatives and volunteers are added as additional insureds as respects operations and activities of, or on behalf of the named insured, performed under contract with the City of Visalia.” 116
G. Prior to commencing any work under this Agreement, CONSULTANT shall deliver to CITY insurance certificates confirming the existence of the insurance required by this Agreement, and including the applicable clauses referenced above. Within thirty (30) days of the execution date of this Agreement, CONSULTANT shall provide to CITY endorsements to the above-required policies, which add to these policies the applicable clauses referenced above. Said endorsements shall be signed by an authorized representative of the insurance company and shall include the signatory’s company affiliation and title. Should it be deemed necessary by CITY, it shall be CONSULTANT’s responsibility to see that CITY receives documentation acceptable to CITY which sustains that the individual signing said endorsements is indeed authorized to do so by the insurance company. CITY has the right to demand, and to receive within a reasonable time period, copies of any insurance policies required under this Agreement.

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

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

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

3. Terminate this Agreement.

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

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

XV. NON-DISCRIMINATION
CONSULTANT and all subcontractors shall not discriminate against any employee or applicant for employment on the basis of race, color, national origin, or sex in the performance of this Agreement. The CONSULTANT shall carry out applicable requirements of 49 CFR part 26 in the award and administration of DOT-assisted contracts. Failure by the contractor to carry out these requirements is a material breach of this Agreement, which may result in the termination of this Agreement.

XVI. MISCELLANEOUS PROVISIONS
A. Firearms Prohibited: Guns may not be carried by contractors/vendors/consultants while working on City of Visalia premises without the expressed written approval of a City of Visalia Department Head, or an exemption in the contract. If a contractor/vendor/consultant is caught carrying a gun, without City permission, their contract will be terminated.

B. Asbestos and Hazardous Materials: In providing its services hereunder, CONSULTANT shall not be responsible for identification, handling, containment, abatement, or in any other respect, for any asbestos or hazardous material if such is present in connection with the PROJECT. In the event the CITY becomes aware of the presence of asbestos or hazardous material at the jobsite, CITY shall be responsible for complying with all applicable federal and state rules and regulations, and shall immediately notify 117
CONSULTANT, who shall then be entitled to cease any of its services that may be affected by such presence, without liability to CONSULTANT arising therefrom.

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

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

E. Dispute/Governing Law: Any dispute not resolvable by informal arbitration between the parties to this Agreement shall be adjudicated in a Court of Law under the laws of the State of California.

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

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

H. Integration/Modification: This Agreement and each of the exhibits referenced herein, which are incorporated by reference, represents the entire understanding of the CITY and the CONSULTANT as to those matters contained herein. No prior oral or written understanding shall be of any force or effect with respect to those matters covered hereunder. This Agreement may not be modified or altered except in writing signed by the CITY and the CONSULTANT.

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

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

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

CITY OF VISALIA
707 W. Acequia Ave.

Visalia, CA 93291
Attention: City Clerk
Peters Engineering Group
862 Pollasky Ave.

Clovis, CA 93612
Attention: Will Washburn
Phone: 559-299-1544
Email: [email protected]
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L. Authority: Each signatory to this Agreement represents that it is authorized to enter into this Agreement and to bind the party to which its signature represents.

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

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

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

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

Exhibit “A”: Scope of Work as presented in mini-RFP released 04/29/2025 Exhibit “B”: Project Schedule of Fees as submitted by Consultant Exhibit “C”: Scope of Work as submitted by Consultant
Exhibit “D”: mini-RFP released 04/29/2025
Exhibit “E”: Addendums 1 to 3 Acknowledgment as submitted by Consultant Exhibit “F”: City of Visalia Forms as submitted by Consultant Exhibit “G”: Certificate of Insurance as submitted by Consultant Exhibit “H”: Federal & State Requirements Acknowledgment as submitted by Consultant Exhibit “I”: Caltrans Forms as Submitted by Consultant
Exhibit “J”: Visalia Labor Compliance Manual
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Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 25-0257 Agenda Date: 7/21/2025 Agenda #: 4.

Agenda Item Wording:

Caltrans Maintenance Agreement - City Street Sweeping of State routes - Authorize the City Manager to sign a delegated maintenance agreement with Caltrans for the sweeping of state routes within City limits for the annual amount of $37,215.00.

Prepared by: Jason Serpa, Public Works Manager, [email protected], 713-4533; Nick Bartsch, Public Work Director, [email protected], 713-4052 Department Recommendation: Staff recommends that City Council authorize the City Manager to sign a delegated maintenance agreement (DMA) with Caltrans for the sweeping of state routes within City limits for the annual amount of $37,215.00.

Summary:

In December of 2023, City Council authorized the City Manager to award a contract to SCA, Inc. for city-wide street sweeping. Apart from new additions to the contract to add new streets and mileage for City growth, one major change to the contract from previous versions was a determination by the Department of Industrial Relations that street sweeping was considered a maintenance item and therefore qualified it for prevailing wage. This increased costs on all items within the contract, including the portion that Caltrans reimbursed the City for as seen in the following figure:

Cost Item
Current Caltrans
Agreement
Proposed Caltrans
Agreement
State Highway (no median) $4,960.00 $14,742.00
State Highway (with median) $9,602.00 $22,473.00
Total Annual $14,562.00 $37,215.00
As shown above, as the new contract changed to prevailing wage, the contracted street sweeping cost of the State routes went from $14,562 annually to $37,215 annually. This increase resulted in staff and Caltrans working towards the proposed new agreement to reimburse the City for the increased cost. It is important to note that due to Caltrans budget constraints, the new proposed annual figure reflects a reduction in the total number of sweeps per year from 52 (weekly) to 26 (biweekly). This change was made in May of 2024 and staff has been satisfied with the results.

Because the proposed delegated maintenance agreement is for the pass-through costs of the contracted street sweeping, with no term end date, there is a section of the agreement that allows the City, with Caltrans approval, to amend the contract for any yearly increases that may occur to keep the City from subsidizing any delegated Caltrans work. With the approval of Caltrans and the City, an amendment to the contract may be executed at any time to increase, or decrease, the contract amount. In addition, the agreement also has a clause that allows either party to terminate the Visalia City Council Page 1 of 2 Printed on 7/18/2025
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File #: 25-0257 Agenda Date: 7/21/2025 Agenda #: 4.
agreement with a 30-day notice.

Background Discussion:

The City has historically been reimbursed by Caltrans for the sweeping of State routes within the City limits. The current agreement, beginning in October 1988, has had many updates for costs and items within the contract, with the last amendment effective July of 2003. This agreement also included, along with the reimbursement for street sweeping, the cost recovery for City staff to maintain electrical facilities as related to traffic signals along the same routes. The proposed new agreement will only include the street sweeping portion of the cost recovery and engineering staff will bring a separate DMA for the electrical facilities maintenance along with other Caltrans items at a later date.

Fiscal Impact: As stated above, the costs reimbursed by Caltrans pertaining to the new delegated maintenance agreement are reimbursement for direct costs billed to the City for State route street sweeping. These costs are paid and reimbursed quarterly through the Gas Tax Fund for a net zero impact.

Prior Council Action: N/A
Other: N/A
Alternatives: To not approve the staff recommendation to authorize the City Manager to sign a delegated maintenance agreement with Caltrans. This option would force Caltrans to arrange for the sweeping of their State routes within our City limits and may cause delays in transition.

Recommended Motion (and Alternative Motions if expected):

I move to authorize the City Manager to sign a delegated maintenance agreement with Caltrans for the sweeping of state routes within City limits for the annual amount of $37,215.00.

Environmental Assessment Status: N/A
CEQA Review: N/A
Deadline for Action: 7/21/2025
Attachments: Caltrans Delegated Maintenance Agreement
Visalia City Council Page 2 of 2 Printed on 7/18/2025
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Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 25-0260 Agenda Date: 7/21/2025 Agenda #: 5.

Agenda Item Wording:

Landscape and Lighting Assessment District Formation - Request authorization to initiate proceedings for the formation of Landscape and Lighting Assessment District No. 25-05 “Pratt Family Ranch 1A, 1C, 1D,” and ordering and levying the annual assessments for Landscape and Lighting Assessment District No. 25-05 “Pratt 1A, 1C, 1D” adopting Resolution Nos. 2025-50 and 2025-51.

Prepared by: Luqman Ragabi, Associate Engineer, [email protected], (559) 713-4362; Adrian Rubalcaba, Sr. Project Manager, [email protected], (559)713-4507; Jason Huckleberry, Engineering & Building Dept. Director, [email protected], (559) 713-4495 Department Recommendation: Staff recommends that City Council adopt Resolution No. 2025-50 initiating proceedings for the formation of Landscape and Lighting Assessment District No. 25-05 “Pratt Family Ranch1A, 1C, 1D” and adopt Resolution No. 2025-51 ordering the improvements and levying the annual assessments for Assessment District No. 25-05 “Pratt Family Ranch 1A, 1C, 1D.” Summary:

The Pratt Family Ranch subdivision project includes Phases 1A, 1C, and 1D totaling 184 residential lots and several lettered landscape lots and common area features. This request involves the formation of a new Landscape and Lighting Assessment District (L&LD No. 25-05) to fund the ongoing maintenance of common area improvements including street trees, streetlights, irrigation systems, and landscaped areas installed as part of these phases.

Background Discussion:

The Pratt Family Ranch Specific Plan is a residential community consisting of 541 single-family dwelling units with both public and private gated streets on parcels totaling 95.6 acres, located within the Tier II and Tier III urban development boundaries. The specific plan includes a mix of low- and medium-density residential districts, parks, and open space areas.

Phase 1 of the project, which includes full development within the Tier II boundary, subdivided approximately 41 acres into 244 single-family dwellings. The subdivision was further phased, with Pratt Phase 1A subdividing 24.8 acres into 94 lots and 5 lettered lots for landscaping, public utilities, sidewalks, and other public purposes; Pratt Phase 1C subdivided 7.9 acres into 52 lots and 1 lettered lot; and, Pratt Phase 1D subdivided 7.4 acres into 38 lots and 3 lettered lots, similarly for landscaping, utilities, and other public purposes.

On April 7, 2025, the City Council approved the recordation of final maps for Phases 1A, 1B, 1C, and 1D, and those maps have since been recorded.

The City of Visalia has been allowing the developers of subdivisions to form assessment districts under the Landscape and Lighting Act of 1972, and now under Proposition 218, in lieu of using homeowners associations for the maintenance of common features such as landscaping, irrigation systems, street lights, street trees, and local streets. The maintenance of these improvements is a Visalia City Council Page 1 of 3 Printed on 7/18/2025
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File #: 25-0260 Agenda Date: 7/21/2025 Agenda #: 5.
systems, street lights, street trees, and local streets. The maintenance of these improvements is a special benefit to the development and enhances the land values to the individual property owners in the district.

The Landscape and Lighting Act allows for the use of summary proceedings when all the affected property owners have given their written consent to waive the requirement for a public hearing. The notice period is also waived. The owner of this development has given their written consent to waive the public hearing and form this district. The use of summary proceedings allows for the initiation of proceedings and the final annexation action of the assessment district to be acted upon together as separate resolutions.

Fiscal Impact: 184 residential lots within Pratt Family Ranch Phases 1A, 1C, and 1D will be annexed into Landscape and Lighting Assessment District No. 25-05. The proposed annual assessment per lot is $1,242.30. The total annual revenue will support ongoing maintenance, repairs, and administration of the district’s improvements.

Prior Council Action: On April 7, 2025, City Council approved the recordation of final maps for the Pratt Family Ranch Subdivision Phases 1A, 1B, 1C, and 1D.

Other: The tentative subdivision map (Tentative Subdivision Map No. 5583) and Annexation No. 2021-04 for Pratt Family Ranch was approved by the Planning Commission on August 14, 2023.

Alternatives: None recommended.

Recommended Motion (and Alternative Motions if expected):

I move to adopt Resolution No. 2025-50 initiating proceedings for the formation of Landscape and Lighting Assessment District No. 25-05 “Pratt Family Ranch 1A, 1C, 1D” and adopt Resolution No. 2025-51 ordering the improvements and levying the annual assessments for Assessment District No. 25-05 “Pratt Family Ranch 1A, 1C, 1D”.

Environmental Assessment Status: Complete. Mitigated Negative Declaration (MND) No. 2021-49 was prepared consistent with the California Environmental Quality Act and City of Visalia Environmental Guidelines adopted December 13th, 2021.

CEQA Review: Mitigated Negative Declaration (MND) No. 2023-37 was prepared consistent with the California Environmental Quality Act and City of Visalia Environmental Guidelines adopted December 13th, 2021.

Deadline for Action: 7/21/2025
Attachments:

1. Aerial Map

2. Resolution Documents including:

Resolution Initiating Proceedings for Formation
Clerk’s Certification
Resolution Ordering the Improvements
Exhibit A - Assessment Diagram
Exhibit B - Landscape Location Diagram
Visalia City Council Page 2 of 3 Printed on 7/18/2025
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File #: 25-0260 Agenda Date: 7/21/2025 Agenda #: 5.

Exhibit C - Tax roll Assessment
Exhibit D - Engineer’s Report
Visalia City Council Page 3 of 3 Printed on 7/18/2025
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RESOLUTION NO. 2025-50

RESOLUTION INITIATING PROCEEDINGS
FOR ASSESSMENT DISTRICT NO. 25-05
PRATT FAMILY RANCH 1A, 1C, 1D
(Pursuant to Landscape and Lighting Act of 1972)
NOW THEREFORE BE IT RESOLVED AS FOLLOWS:

1. The City Council proposes to form an assessment district pursuant to the Landscaping & Lighting Act of 1972 (Section 22500 and following, Streets & Highways Code) for the purpose of the following improvements:

Maintenance of street trees, landscaping, local streets, street lights, block walls, and any other applicable equipment or improvements.

2. The proposed district shall be designated “Assessment District No. 25-05, City of Visalia, Tulare County, California,” and shall include the land shown on the map designated “Assessment Diagram, Assessment District No. 25-05, City of Visalia, Tulare County, California”, which is on file with the City Clerk and is hereby approved and known as “Pratt Family Ranch 1A, 1C, 1D.”

3. The City Engineer of the City of Visalia is hereby designated engineer for the purpose of these formation proceedings. The City Council hereby directs the Engineer to prepare and file with the City Clerk a report in accordance with Article 4 of Chapter 1 of the Landscape & Lighting Act of 1972.

PASSED AND ADOPTED: July 21, 2025 LESLIE B. CAVIGLIA, CITY CLERK

STATE OF CALIFORNIA )
COUNTY OF TULARE ) ss.

CITY OF VISALIA )
I, Leslie B. Caviglia, City Clerk of the City of Visalia, certify the foregoing is the full and true Resolution 2025-50 passed and adopted by the Council of the City of Visalia at a regular meeting held on July 21, 2025.

Dated: July 21, 2025 LESLIE B. CAVIGLIA, CITY CLERK
By Reyna Rivera, Chief Deputy City Clerk
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CLERK’S CERTIFICATION TO COUNTY AUDITOR
ASSESSMENT DISTRICT NO. 25-05
PRATT FAMILY RANCH 1A, 1C, 1D
(Pursuant to Landscaping & Lighting Act of 1972)
TO THE COUNTY AUDITOR OF THE COUNTY OF TULARE:

I hereby certify that the attached document is a true copy of that certain Engineer’s Report, including assessments and assessment diagram, for “Assessment District No. 25-05, City of Visalia, Tulare County, California” confirmed by the City Council of the City of Visalia on July 21, 2025 by its Resolution No. 2025-50.

This document is certified, and is filed with you, pursuant to Section 22641 of the Streets and Highways Code.

Dated: July 21, 2025 LESLIE B. CAVIGLIA, CITY CLERK
By Reyna Rivera, Chief Deputy City Clerk
139
RESOLUTION NO. 2025-51

RESOLUTION ORDERING THE IMPROVEMENTS FOR
ASSESSMENT DISTRICT NO. 25-05
PRATT FAMILY RANCH 1A, 1C, 1D
(Pursuant to the Landscape & Lighting Act of 1972)
NOW THEREFORE BE IT RESOLVED AS FOLLOWS:

1. The City Council adopted its Resolution Initiating Proceedings for Assessment District No. 25-05, City of Visalia, Tulare County, California, and directed the preparation and filing of the Engineer’s Report on the proposed formation.

2. The Engineer for the proceedings has filed an Engineer’s Report with the City Clerk.

3. The owners of all land within the boundaries of the proposed landscape and lighting district have filed their consent to the formation of the proposed district, and to the adoption of the Engineer’s Report and the levy of the assessments stated therein.

4. The City Council hereby orders the improvements and the formation of the assessment district described in the Resolution Initiating Proceedings and in the Engineer’s Report.

5. The City Council hereby confirms the diagram and the assessment contained in the Engineer’s Report and levies the assessment for the fiscal year 2025/26.

6. The City Council hereby forwards the following attachments to Tulare County Recorder’s Office for recordation:
a. Clerk’s Certification to County Auditor
b. Resolution Initiating Proceedings
c. Resolution Ordering Improvements
d. Engineer’s Report:

Exhibit A - Assessment Diagram showing all parcels of real property within the Assessment District
Exhibit B - Landscape Location Diagram
Exhibit C - Tax Roll Assessment
Exhibit D - Engineer’s Report
140
PASSED AND ADOPTED: July 21, 2025 LESLIE B. CAVIGLIA, CITY CLERK

STATE OF CALIFORNIA )
COUNTY OF TULARE ) ss.

CITY OF VISALIA )
I, Leslie B. Caviglia, City Clerk of the City of Visalia, certify the foregoing is the full and true Resolution 2025-51 passed and adopted by the Council of the City of Visalia at a regular meeting held on July 21, 2025.

Dated: July 21, 2025 LESLIE B. CAVIGLIA, CITY CLERK
By Reyna Rivera, Chief Deputy City Clerk
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Exhibit “A”
Assessment Diagram
Landscape & Lighting Assessment District No. 25-05
PRATT FAMILY RANCH 1A, 1C, 1D
142
Exhibit “B”
Landscape Location Diagram
Landscape & Lighting Assessment District No. 25-05
PRATT FAMILY RANCH 1A, 1C, 1D
143
Exhibit “B”
Landscape Location Diagram
Landscape & Lighting Assessment District No. 25-05
PRATT FAMILY RANCH 1A, 1C, 1D
144
Exhibit “C”
Tax Roll Assessment
Landscape & Lighting Assessment District 25-05
PRATT FAMILY RANCH 1A, 1C, 1D
Fiscal Year 2025-26
APN # Assessment OWNER LOT# DISTRICT
To Be Assigned $ 1,242.30 DR HORTON 25-05001 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05002 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05003 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05004 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05005 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05006 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05007 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05008 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05009 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05010 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05011 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05012 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05013 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05014 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05015 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05016 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05017 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05018 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05019 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05020 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05021 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05022 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05023 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05024 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05025 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05026 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05027 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05028 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05029 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05030 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05031 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05032 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05033 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05034 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05035 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05036 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05037 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05038 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05039 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05040 25-05 PRATT FAMILY RANCH 1A, 1C, 1D 145
Exhibit “C”
Tax Roll Assessment
Landscape & Lighting Assessment District 25-05
PRATT FAMILY RANCH 1A, 1C, 1D
Fiscal Year 2025-26
To Be Assigned $ 1,242.30 DR HORTON 25-05041 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05042 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05043 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05044 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05045 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05046 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05047 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05048 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05049 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05050 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05051 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05052 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05053 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05054 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05055 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05056 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05057 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05058 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05059 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05060 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05061 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05062 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05063 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05064 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05065 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05066 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05067 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05068 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05069 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05070 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05071 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05072 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05073 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05074 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05075 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05076 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05077 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05078 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05079 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05080 25-05 PRATT FAMILY RANCH 1A, 1C, 1D 146
Exhibit “C”
Tax Roll Assessment
Landscape & Lighting Assessment District 25-05
PRATT FAMILY RANCH 1A, 1C, 1D
Fiscal Year 2025-26
To Be Assigned $ 1,242.30 DR HORTON 25-05081 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05082 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05083 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05084 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05085 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05086 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05087 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05088 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05089 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05090 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05091 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05092 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05093 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05094 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05095 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05096 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05097 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05098 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05099 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05100 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05101 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05102 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05103 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05104 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05105 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05106 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05107 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05108 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05109 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05110 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05111 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05112 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05113 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05114 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05115 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05116 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05117 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05118 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05119 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05120 25-05 PRATT FAMILY RANCH 1A, 1C, 1D 147
Exhibit “C”
Tax Roll Assessment
Landscape & Lighting Assessment District 25-05
PRATT FAMILY RANCH 1A, 1C, 1D
Fiscal Year 2025-26
To Be Assigned $ 1,242.30 DR HORTON 25-05121 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05122 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05123 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05124 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05125 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05126 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05127 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05128 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05129 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05130 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05131 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05132 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05133 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05134 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05135 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05136 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05137 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05138 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05139 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05140 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05141 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05142 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05143 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05144 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05145 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05146 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05147 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05148 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05149 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05150 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05151 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05152 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05153 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05154 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05155 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05156 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05157 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05158 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05159 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05160 25-05 PRATT FAMILY RANCH 1A, 1C, 1D 148
Exhibit “C”
Tax Roll Assessment
Landscape & Lighting Assessment District 25-05
PRATT FAMILY RANCH 1A, 1C, 1D
Fiscal Year 2025-26
To Be Assigned $ 1,242.30 DR HORTON 25-05161 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05162 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05163 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05164 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05165 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05166 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05167 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05168 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05169 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05170 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05171 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05172 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05173 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05174 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05175 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05176 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05177 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05178 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05179 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05180 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05181 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05182 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05183 25-05 PRATT FAMILY RANCH 1A, 1C, 1D To Be Assigned $ 1,242.30 DR HORTON 25-05184 25-05 PRATT FAMILY RANCH 1A, 1C, 1D 149
Exhibit “D”
Engineer’s Report
Landscape & Lighting Assessment District 25-05
PRATT FAMILY RANCH 1A, 1C, 1D
Fiscal Year 2025-26
General Description
Pratt Family Ranch is located on the west side of Mooney Boulevard at the intersection of Mooney Boulevard and Pratt Avenue. Exhibit “A” is a map of Assessment District 25-05, which encompasses multiple phases of the Pratt Family Ranch subdivision within this development.

Assessment District 25-05 will fund the maintenance of pocket parks, streetlights, and median and frontage landscaping within the development. This includes the ongoing upkeep of landscaping, irrigation systems, and lighting infrastructure to maintain the aesthetic appeal, safety, and functional quality of these public spaces.

Determination of Benefit
The purpose of landscaping is to provide an aesthetic impression for the area. The lighting is to provide safety and visual impressions for the area. The block wall provides security, aesthetics, and sound suppression. The maintenance of any landscape areas, street lights, streets, and block walls is vital for the protection of both economic and humanistic values of the development.

In order to preserve the values incorporated within developments and to concurrently have an adequate funding source for the maintenance of all internal local streets within the subdivision, the City Council has determined that landscape areas, street lights, block walls, street trees, and all internal local streets should be included in a maintenance district to ensure satisfactory levels of maintenance.

Method of Apportionment
In order to provide an equitable assessment to all owners within the District, the following method of apportionment has been used. All lots in the District benefit equally, including lots not adjacent to landscape areas, block walls, and street lights. The lots not adjacent to landscape areas, block walls, and street lights benefit by the uniform maintenance and overall appearance of the District.

All lots in the District have frontage on an internal local street and therefore derive a direct benefit from the maintenance of the local streets.

Estimated Costs
The estimated costs to maintain the District includes the costs to maintain any landscaping, street trees, landscape trees, street lights, block walls, and pavement on local streets. The regular preventive maintenance of pavement on local streets is based on the following schedule:

Reclamite on a 5 year cycle, Crack Seal on a 7 year cycle; Cape Seal on a 15 year cycle and Overlays on a 20 year cycle.
150
Exhibit “D”
Engineer’s Report
Landscape & Lighting Assessment District 25-05
PRATT FAMILY RANCH 1A, 1C, 1D
Fiscal Year 2025-26
The quantities, estimated costs, and per lot assessment in the “PRATT FAMILY RANCH 1A, 1C, 1D” landscape and lighting district are as follows:

Pocket Park 15 Yr Cycle Unit Amount Cost Per Unit
Times per
Year
Annual Cost
Per Unit Annual Total Cost
Turf Area Monthly Sq Ft 63,064 $ 0.034 12 $ 0.41 $ 25,911.74 Shrub Area Monthly Sq Ft $ 0.025 12 $ 0.30 $ -
Water Monthly Sq Ft 63,064 $ 0.018 12 $ 0.22 $ 13,621.82 Electricity Monthly Meter 1 $ 20.69 12 $ 248.28 $ 248.28 Trees Annual Each 46 $ 60.00 1 $ 60.00 $ 2,760.00
Custodial Maintenance Monthly Each - $ 172.00 12 $ 2,064.00 $ - Annual Fibar Material
Replacement
Annual Cubic Yd - $ 42.00 1 $ 42.00 $ -
Equipment Inspection Monthly Hourly - $ 98.24 12 $ 1,178.88 $ - Repair/Replace Equipment Monthly Hourly - $ 55.00 12 $ 660.00 $ - Playground Structure Once Each - $ 95,000.00 - $ 6,333.33 $ - Picnic Table Once Each - $ 5,707.00 - $ 380.47 $ -
Bench Once Each 9 $ 1,492.00 - $ 99.47 $ 895.20
Trash Receptacle Once Each 3 $ 1,199.00 - $ 79.93 $ 239.80 Trellis/Arbor Once Each - $ 3,500.00 - $ 233.33 $ -
Outdoor Lighting Pole Once Each 13 $ 8,000.00 - $ 533.33 $ 6,933.33 Description 20 Yr Cycle Unit Amount Cost Per Unit
Times per
Year
Annual Cost
Per Unit Annual Total Cost
Turf Area Monthly Sq Ft 69,742 $ 0.034 12 $ 0.41 $ 28,655.59 Shrub Area Monthly Sq Ft - $ 0.025 12 $ 0.30 $ -
Water Monthly Sq Ft 69,742 $ 0.018 12 $ 0.22 $ 15,064.27 Electricity Monthly Meter 2 $ 20.69 12 $ 248.28 $ 496.56 Landscape Trees Annual Each 175 $ 60.00 1 $ 60.00 $ 10,500.00 Interior Street Tree Annual Each 197 $ 60.00 1 $ 60.00 $ 11,820.00 Street Lights (Electricity &
Maint) Monthly Each 62 $ 11.30 12 $ 135.60 $ 8,407.20
Block Wall Annual Ln Ft 1,780 $ 0.75 1 $ 0.75 $ 1,335.00 Project Management Annual Lots 184 $ 40.00 1 $ 40.00 $ 7,360.00 Description 20 Yr Cycle Unit Amount Cost Per Unit
Times per
Cycle
Annual Cost
Per Unit Annual Total Cost
Reclamite (5 year cycle) Twice Sq Yd 30,737 $ 0.96 2 $ 0.96 $ 2,950.78 Crack Seal (7 year cycle) Twice Sq Yd 30,737 $ 0.68 2 $ 0.68 $ 2,090.14 Cape Seal (15 year cycle) Once Sq Yd 30,737 $ 11.16 1 $ 11.16 $ 17,151.43

2.0' Overlay (20 year cycle) Once Sq Yd 30,737 $ 33.42 1 $ 33.42 $ 51,362.08 Total $ 207,803.23
10% $ 20,780.32
Grand Total $ 228,583.55
Number of Lots 184
Annual Per Lot Assessment $ 1,242.30
Playground Equipment
10% Reserve Fund (Repairs)
151
Exhibit “D”
Engineer’s Report
Landscape & Lighting Assessment District 25-05
PRATT FAMILY RANCH 1A, 1C, 1D
Fiscal Year 2025-26
Annual Cost Increase
This assessment district shall be subject to an automatic annual increase derived by the following formula:
year “n” assessment = ($228,583.55) (1.05)
(n-1)
where “n” equals the age of the assessment district with year one (1) being the year that the assessment district was formed;
However, in no case shall the assessment be greater than 1) The actual cost of providing the benefit conferred to each parcel plus any prior years’ deficit and less any carryover, as determined annually or; 2) a 10% increase over the prior year’s assessment.

The reserve fund shall be replenished as necessary to maintain a level of 10% of the estimated maintenance cost so long as the annual assessment change does not exceed the limits identified above.

Example 1) The year four estimated costs are $249,156.07 [a 9% increase over the base year assessment of $228,5834.55]. The ceiling on the assessment increase for year four would be $264,614.03 [ceiling = ($167,868.28) (1.05) (4-1)]. The assessment would be set at $249,156.07 or the actual cost of providing the maintenance effort.

Example 2) The year four assessment is estimated at the actual cost of providing the maintenance effort of $258,299.41 [a 7% increase over the previous year assessment and a 13.0% increase over the base year assessment]. The ceiling on the assessment increase for year four would be $264,614.03 [ceiling = $228,583.55) (1.05) (4-1)]. The assessment would be set at $264,6143.03 or the actual cost of providing the maintenance effort because it is less than the ceiling amount and the year-to-year increase is less than the 10% cap on increases in any given year.

Example 3) The year four assessment is $249,156.07 [a 9% increase over the base year assessment $228,583.55] and damage occurred to the masonry wall raising the year five assessment to $303,970.41 [a 22% increase over the previous year assessment]. The year five assessment will be capped at $274,071.68, a 10% increase over the previous year and under the ceiling of $277,844.74 [ceiling = ($141,164.83) (1.05) (5-1)]. The difference of $29,898.73 will be recognized as a deficit and carried over into future years’ assessment. 152
Exhibit “D”
Engineer’s Report
Landscape & Lighting Assessment District 25-05
PRATT FAMILY RANCH 1A, 1C, 1D
Fiscal Year 2025-26
City Engineer Certification
I hereby certify that this report was prepared under my supervision and this report is based on information obtained from the improvement plans of the subject development.

Christopher Crawford Date
City Engineer
153
Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 25-0261 Agenda Date: 7/21/2025 Agenda #: 6.

Agenda Item Wording:

Landscape and Lighting Assessment District Formation - Request authorization to initiate proceedings for the formation of Landscape and Lighting Assessment District No. 25-04 “Pratt Family Ranch 1B” and ordering and levying the annual assessments for Landscape and Lighting Assessment District No. 25-04 “Pratt Family Ranch 1B” adopting Resolution Nos. 2025-52 and 2025-

53. Prepared by: Luqman Ragabi, Associate Engineer [email protected] (559)713-4362; Adrian Rubalcaba, Sr. Project Manager [email protected] (559)713-4507; Jason Huckleberry, Engineering & Building Dept. Director [email protected] (559)713-4495 Department Recommendation: Staff recommends that City Council adopt Resolution No. 2025-52 initiating proceedings for the formation of Landscape and Lighting Assessment District No. 25-04 “Pratt 1B” and adopt Resolution No. 2025-53 ordering the improvements and levying the annual assessments for Assessment District No. 25-04 “Pratt 1B.” Summary:

The Pratt Family Ranch subdivision project includes Phase 1B containing 60 residential lots and several lettered landscape lots and common area features. This request involves the formation of a new Landscape and Lighting Assessment District (L&LD No. 25-04) to fund the ongoing maintenance of common area improvements including street trees, streetlights, irrigation systems, and landscaped areas installed as part of these phases.

Background Discussion:

The Pratt Family Ranch Specific Plan is a residential community consisting of 541 single-family dwelling units with both public and private gated streets on parcels totaling 95.6 acres, located within the Tier II and Tier III urban development boundaries. The specific plan includes a mix of low- and medium-density residential districts, parks, and open space areas.

Phase 1 of the project, which includes full development within the Tier II boundary, subdivided approximately 41 acres into 244 single-family dwellings. The subdivision was further phased, with Pratt Phase 1B subdividing 9.3 acres into 60 lots, and 6 lettered lots for landscaping, public utilities, sidewalk, and other purposes. Phase 1B is a private gated community. Improvements within the gated community will be maintained by a Homeowners’ Association (HOA), including the interior private streets, interior streetlights, parkway landscaping along Mooney Boulevard, and the perimeter block walls along Mooney Boulevard. A Landscape and Lighting District (LLD) will be formed to provide maintenance for public improvements, including pocket parks and street lighting outside the gated area along collector street frontages.

On April 7, 2025, the City Council approved the recordation of final maps for Phases 1A, 1B, 1C, and 1D, and those maps have since been recorded.

Visalia City Council Page 1 of 3 Printed on 7/18/2025
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File #: 25-0261 Agenda Date: 7/21/2025 Agenda #: 6.

The City of Visalia has been allowing the developers of subdivisions to form assessment districts under the Landscape and Lighting Act of 1972, and now under Proposition 218, in lieu of using homeowners associations for the maintenance of common features such as landscaping, irrigation systems, street lights, street trees, and local streets. The maintenance of these improvements is a special benefit to the development and enhances the land values to the individual property owners in the district.

The Landscape and Lighting Act allows for the use of summary proceedings when all the affected property owners have given their written consent to waive the requirement for a public hearing. The notice period is also waived. The owner of this development has given their written consent to waive the public hearing and form this district. The use of summary proceedings allows for the initiation of proceedings and the final annexation action of the assessment district to be acted upon together as separate resolutions.

Fiscal Impact:
60 residential lots within Pratt Family Ranch Phase 1B will be annexed into Landscape and Lighting Assessment District No. 25-04. The proposed annual assessment per lot is $330.17. The total annual revenue will support ongoing maintenance, repairs, and administration of the district’s improvements.

Prior Council Action: On April 7, 2025, City Council approved the recordation of final maps for the Pratt Subdivision Phases 1B.

Other: The tentative subdivision map (Tentative Subdivision Map No. 5583) and Annexation No. 2021-04 for Pratt Family Ranch was approved by the Planning Commission on August 14, 2023.

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

I move to adopt Resolution No. 2025-52 initiating proceedings for the formation of Landscape and Lighting Assessment District No. 25-04 “Pratt Family Ranch 1B” and adopt Resolution No. 2025-53 ordering the improvements and levying the annual assessments for Assessment District No. 25-04 “Pratt Family Ranch 1B”.

Environmental Assessment Status: Complete. Mitigated Negative Declaration (MND) No. 2021-49 was prepared consistent with the California Environmental Quality Act and City of Visalia Environmental Guidelines adopted December 13th, 2021.

CEQA Review: Mitigated Negative Declaration (MND) No. 2023-37 was prepared consistent with the California Environmental Quality Act and City of Visalia Environmental Guidelines adopted December 13th, 2021.

Deadline for Action: 7/21/2025
Attachments:

1. Aerial Map

2. Resolution Documents including:

Resolution Initiating Proceedings for Formation
Visalia City Council Page 2 of 3 Printed on 7/18/2025
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File #: 25-0261 Agenda Date: 7/21/2025 Agenda #: 6.

Clerk’s Certification
Resolution Ordering the Improvements
Exhibit A - Assessment Diagram
Exhibit B - Landscape Location Diagram
Exhibit C - Tax roll Assessment
Exhibit D - Engineer’s Report
Visalia City Council Page 3 of 3 Printed on 7/18/2025
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157
RESOLUTION NO. 2025-52

RESOLUTION INITIATING PROCEEDINGS
FOR ASSESSMENT DISTRICT NO. 25-04
PRATT FAMILY RANCH 1B
(Pursuant to Landscape and Lighting Act of 1972)
NOW THEREFORE BE IT RESOLVED AS FOLLOWS:

1. The City Council proposes to form an assessment district pursuant to the Landscaping & Lighting Act of 1972 (Section 22500 and following, Streets & Highways Code) for the purpose of the following improvements:

Maintenance of street trees, landscaping, local streets, street lights, block walls, and any other applicable equipment or improvements.

2. The proposed district shall be designated “Assessment District No. 25-04, City of Visalia, Tulare County, California,” and shall include the land shown on the map designated “Assessment Diagram, Assessment District No. 25-04, City of Visalia, Tulare County, California”, which is on file with the City Clerk and is hereby approved and known as “Pratt Family Ranch 1B.”

3. The City Engineer of the City of Visalia is hereby designated engineer for the purpose of these formation proceedings. The City Council hereby directs the Engineer to prepare and file with the City Clerk a report in accordance with Article 4 of Chapter 1 of the Landscape & Lighting Act of 1972.

PASSED AND ADOPTED: July 21, 2025 LESLIE B. CAVIGLIA, CITY CLERK

STATE OF CALIFORNIA )
COUNTY OF TULARE ) ss.

CITY OF VISALIA )
I, Leslie B. Caviglia, City Clerk of the City of Visalia, certify the foregoing is the full and true Resolution 2025-52 passed and adopted by the Council of the City of Visalia at a regular meeting held on July 21, 2025.

Dated: July 21, 2025 LESLIE B. CAVIGLIA, CITY CLERK
By Reyna Rivera, Chief Deputy City Clerk
158
CLERK’S CERTIFICATION TO COUNTY AUDITOR
ASSESSMENT DISTRICT NO. 25-04
PRATT FAMILY RANCH 1B
(Pursuant to Landscaping & Lighting Act of 1972)
TO THE COUNTY AUDITOR OF THE COUNTY OF TULARE:

I hereby certify that the attached document is a true copy of that certain Engineer’s Report, including assessments and assessment diagram, for “Assessment District No. 25-04, City of Visalia, Tulare County, California” confirmed by the City Council of the City of Visalia on July 21, 2025 by its Resolution No. 2025-52.

This document is certified, and is filed with you, pursuant to Section 22641 of the Streets and Highways Code.

Dated: July 21, 2025 LESLIE B. CAVIGLIA, CITY CLERK
By Reyna Rivera, Chief Deputy City Clerk
159
RESOLUTION NO. 2025-53

RESOLUTION ORDERING THE IMPROVEMENTS FOR
ASSESSMENT DISTRICT NO. 25-04
PRATT FAMILY RANCH 1B
(Pursuant to the Landscape & Lighting Act of 1972)
NOW THEREFORE BE IT RESOLVED AS FOLLOWS:

1. The City Council adopted its Resolution Initiating Proceedings for Assessment District No. 25-04, City of Visalia, Tulare County, California, and directed the preparation and filing of the Engineer’s Report on the proposed formation.

2. The Engineer for the proceedings has filed an Engineer’s Report with the City Clerk.

3. The owners of all land within the boundaries of the proposed landscape and lighting district have filed their consent to the formation of the proposed district, and to the adoption of the Engineer’s Report and the levy of the assessments stated therein.

4. The City Council hereby orders the improvements and the formation of the assessment district described in the Resolution Initiating Proceedings and in the Engineer’s Report.

5. The City Council hereby confirms the diagram and the assessment contained in the Engineer’s Report and levies the assessment for the fiscal year 2025/26.

6. The City Council hereby forwards the following attachments to Tulare County Recorder’s Office for recordation:
a. Clerk’s Certification to County Auditor
b. Resolution Initiating Proceedings
c. Resolution Ordering Improvements
d. Engineer’s Report:

Exhibit A - Assessment Diagram showing all parcels of real property within the Assessment District
Exhibit B - Landscape Location Diagram
Exhibit C - Tax Roll Assessment
Exhibit D - Engineer’s Report
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PASSED AND ADOPTED: July 21, 2025 LESLIE B. CAVIGLIA, CITY CLERK

STATE OF CALIFORNIA )
COUNTY OF TULARE ) ss.

CITY OF VISALIA )
I, Leslie B. Caviglia, City Clerk of the City of Visalia, certify the foregoing is the full and true Resolution 2025-53 passed and adopted by the Council of the City of Visalia at a regular meeting held on July 21, 2025.

Dated: July 21, 2025 LESLIE B. CAVIGLIA, CITY CLERK
By Reyna Rivera, Chief Deputy City Clerk
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Exhibit “A”
Assessment Diagram
Landscape & Lighting Assessment District No. 25-04
PRATT FAMILY RANCH 1B
162
Exhibit “B”
Landscape Location Diagram
Landscape & Lighting Assessment District No. 25-04
PRATT FAMILY RANCH 1B
163
Exhibit “C”
Tax Roll Assessment
Landscape & Lighting Assessment District 25-04
PRATT FAMILY RANCH 1B
Fiscal Year 2025-26
APN # Assessment OWNER LOT# DISTRICT
To Be Assigned $ 330.17 DR HORTON 25-04001 25-04 PRATT FAMILY RANCH 1B To Be Assigned $ 330.17 DR HORTON 25-04002 25-04 PRATT FAMILY RANCH 1B To Be Assigned $ 330.17 DR HORTON 25-04003 25-04 PRATT FAMILY RANCH 1B To Be Assigned $ 330.17 DR HORTON 25-04004 25-04 PRATT FAMILY RANCH 1B To Be Assigned $ 330.17 DR HORTON 25-04005 25-04 PRATT FAMILY RANCH 1B To Be Assigned $ 330.17 DR HORTON 25-04006 25-04 PRATT FAMILY RANCH 1B To Be Assigned $ 330.17 DR HORTON 25-04007 25-04 PRATT FAMILY RANCH 1B To Be Assigned $ 330.17 DR HORTON 25-04008 25-04 PRATT FAMILY RANCH 1B To Be Assigned $ 330.17 DR HORTON 25-04009 25-04 PRATT FAMILY RANCH 1B To Be Assigned $ 330.17 DR HORTON 25-04010 25-04 PRATT FAMILY RANCH 1B To Be Assigned $ 330.17 DR HORTON 25-04011 25-04 PRATT FAMILY RANCH 1B To Be Assigned $ 330.17 DR HORTON 25-04012 25-04 PRATT FAMILY RANCH 1B To Be Assigned $ 330.17 DR HORTON 25-04013 25-04 PRATT FAMILY RANCH 1B To Be Assigned $ 330.17 DR HORTON 25-04014 25-04 PRATT FAMILY RANCH 1B To Be Assigned $ 330.17 DR HORTON 25-04015 25-04 PRATT FAMILY RANCH 1B To Be Assigned $ 330.17 DR HORTON 25-04016 25-04 PRATT FAMILY RANCH 1B To Be Assigned $ 330.17 DR HORTON 25-04017 25-04 PRATT FAMILY RANCH 1B To Be Assigned $ 330.17 DR HORTON 25-04018 25-04 PRATT FAMILY RANCH 1B To Be Assigned $ 330.17 DR HORTON 25-04019 25-04 PRATT FAMILY RANCH 1B To Be Assigned $ 330.17 DR HORTON 25-04020 25-04 PRATT FAMILY RANCH 1B To Be Assigned $ 330.17 DR HORTON 25-04021 25-04 PRATT FAMILY RANCH 1B To Be Assigned $ 330.17 DR HORTON 25-04022 25-04 PRATT FAMILY RANCH 1B To Be Assigned $ 330.17 DR HORTON 25-04023 25-04 PRATT FAMILY RANCH 1B To Be Assigned $ 330.17 DR HORTON 25-04024 25-04 PRATT FAMILY RANCH 1B To Be Assigned $ 330.17 DR HORTON 25-04025 25-04 PRATT FAMILY RANCH 1B To Be Assigned $ 330.17 DR HORTON 25-04026 25-04 PRATT FAMILY RANCH 1B To Be Assigned $ 330.17 DR HORTON 25-04027 25-04 PRATT FAMILY RANCH 1B To Be Assigned $ 330.17 DR HORTON 25-04028 25-04 PRATT FAMILY RANCH 1B To Be Assigned $ 330.17 DR HORTON 25-04029 25-04 PRATT FAMILY RANCH 1B To Be Assigned $ 330.17 DR HORTON 25-04030 25-04 PRATT FAMILY RANCH 1B 164
Exhibit “C”
Tax Roll Assessment
Landscape & Lighting Assessment District 25-04
PRATT FAMILY RANCH 1B
Fiscal Year 2025-26
To Be Assigned $ 330.17 DR HORTON 25-04031 25-04 PRATT FAMILY RANCH 1B To Be Assigned $ 330.17 DR HORTON 25-04032 25-04 PRATT FAMILY RANCH 1B To Be Assigned $ 330.17 DR HORTON 25-04033 25-04 PRATT FAMILY RANCH 1B To Be Assigned $ 330.17 DR HORTON 25-04034 25-04 PRATT FAMILY RANCH 1B To Be Assigned $ 330.17 DR HORTON 25-04035 25-04 PRATT FAMILY RANCH 1B To Be Assigned $ 330.17 DR HORTON 25-04036 25-04 PRATT FAMILY RANCH 1B To Be Assigned $ 330.17 DR HORTON 25-04037 25-04 PRATT FAMILY RANCH 1B To Be Assigned $ 330.17 DR HORTON 25-04038 25-04 PRATT FAMILY RANCH 1B To Be Assigned $ 330.17 DR HORTON 25-04039 25-04 PRATT FAMILY RANCH 1B To Be Assigned $ 330.17 DR HORTON 25-04040 25-04 PRATT FAMILY RANCH 1B To Be Assigned $ 330.17 DR HORTON 25-04041 25-04 PRATT FAMILY RANCH 1B To Be Assigned $ 330.17 DR HORTON 25-04042 25-04 PRATT FAMILY RANCH 1B To Be Assigned $ 330.17 DR HORTON 25-04043 25-04 PRATT FAMILY RANCH 1B To Be Assigned $ 330.17 DR HORTON 25-04044 25-04 PRATT FAMILY RANCH 1B To Be Assigned $ 330.17 DR HORTON 25-04045 25-04 PRATT FAMILY RANCH 1B To Be Assigned $ 330.17 DR HORTON 25-04046 25-04 PRATT FAMILY RANCH 1B To Be Assigned $ 330.17 DR HORTON 25-04047 25-04 PRATT FAMILY RANCH 1B To Be Assigned $ 330.17 DR HORTON 25-04048 25-04 PRATT FAMILY RANCH 1B To Be Assigned $ 330.17 DR HORTON 25-04049 25-04 PRATT FAMILY RANCH 1B To Be Assigned $ 330.17 DR HORTON 25-04050 25-04 PRATT FAMILY RANCH 1B To Be Assigned $ 330.17 DR HORTON 25-04051 25-04 PRATT FAMILY RANCH 1B To Be Assigned $ 330.17 DR HORTON 25-04052 25-04 PRATT FAMILY RANCH 1B To Be Assigned $ 330.17 DR HORTON 25-04053 25-04 PRATT FAMILY RANCH 1B To Be Assigned $ 330.17 DR HORTON 25-04054 25-04 PRATT FAMILY RANCH 1B To Be Assigned $ 330.17 DR HORTON 25-04055 25-04 PRATT FAMILY RANCH 1B To Be Assigned $ 330.17 DR HORTON 25-04056 25-04 PRATT FAMILY RANCH 1B To Be Assigned $ 330.17 DR HORTON 25-04057 25-04 PRATT FAMILY RANCH 1B To Be Assigned $ 330.17 DR HORTON 25-04058 25-04 PRATT FAMILY RANCH 1B To Be Assigned $ 330.17 DR HORTON 25-04059 25-04 PRATT FAMILY RANCH 1B To Be Assigned $ 330.17 DR HORTON 25-04060 25-04 PRATT FAMILY RANCH 1B 165
Exhibit “D”
Engineer’s Report
Landscape & Lighting Assessment District 25-04
PRATT FAMILY RANCH 1B
Fiscal Year 2025-26
General Description
Pratt Family Ranch is located on the west side of Mooney Boulevard at the intersection of Mooney Boulevard and Pratt Avenue. Exhibit “A” is a map of Assessment District 25-04, which encompasses multiple phases of the Pratt Family Ranch subdivision within this development.

Assessment District 25-04 will fund the maintenance of pocket parks, collector streetlights, and median landscaping within the development. This includes the ongoing upkeep of landscaping, irrigation systems, and lighting infrastructure to maintain the aesthetic appeal, safety, and functional quality of these public spaces.

Determination of Benefit
The purpose of landscaping is to provide an aesthetic impression for the area. The lighting is to provide safety and visual impressions for the area. The block wall provides security, aesthetics, and sound suppression. The maintenance of any landscape areas, street lights, streets, and block walls is vital for the protection of both economic and humanistic values of the development.

In order to preserve the values incorporated within developments and to concurrently have an adequate funding source for the maintenance of all internal local streets within the subdivision, the City Council has determined that landscape areas, street lights, block walls, street trees, and all internal local streets should be included in a maintenance district to ensure satisfactory levels of maintenance.

Method of Apportionment
In order to provide an equitable assessment to all owners within the District, the following method of apportionment has been used. All lots in the District benefit equally, including lots not adjacent to landscape areas, block walls, and street lights. The lots not adjacent to landscape areas, block walls, and street lights benefit by the uniform maintenance and overall appearance of the District.

All lots in the District have frontage on an internal local street and therefore derive a direct benefit from the maintenance of the local streets.

Estimated Costs
The estimated costs to maintain the District includes the costs to maintain any landscaping, street trees, landscape trees, street lights, block walls, and pavement on local streets. The regular preventive maintenance of pavement on local streets is based on the following schedule:

Reclamite on a 5 year cycle, Crack Seal on a 7 year cycle; Cape Seal on a 15 year cycle and Overlays on a 20 year cycle.
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Exhibit “D”
Engineer’s Report
Landscape & Lighting Assessment District 25-04
PRATT FAMILY RANCH 1B
Fiscal Year 2025-26
The quantities, estimated costs, and per lot assessment in the “PRATT FAMILY RANCH 1B” landscape and lighting district are as follows:

Pocket Park 15 Yr Cycle Unit Amount Cost Per Unit
Times per
Year
Annual Cost
Per Unit Annual Total Cost
Turf Area Monthly Sq Ft 16,283 $ 0.034 12 $ 0.41 $ 6,690.36 Shrub Area Monthly Sq Ft $ 0.025 12 $ 0.30 $ -
Water Monthly Sq Ft 16,283 $ 0.018 12 $ 0.22 $ 3,517.13 Electricity Monthly Meter $ 20.69 12 $ 248.28 $ -
Trees Annual Each 17 $ 60.00 1 $ 60.00 $ 1,020.00
Custodial Maintenance Monthly Each - $ 172.00 12 $ 2,064.00 $ - Annual Fibar Material
Replacement
Annual Cubic Yd - $ 42.00 1 $ 42.00 $ -
Equipment Inspection Monthly Hourly - $ 98.24 12 $ 1,178.88 $ - Repair/Replace Equipment Monthly Hourly - $ 55.00 12 $ 660.00 $ - Playground Structure Once Each - $ 95,000.00 - $ 6,333.33 $ - Picnic Table Once Each - $ 5,707.00 - $ 380.47 $ -
Bench Once Each 4 $ 1,492.00 - $ 99.47 $ 397.87
Trash Receptacle Once Each - $ 1,199.00 - $ 79.93 $ -
Trellis/Arbor Once Each - $ 3,500.00 - $ 233.33 $ -
Outdoor Lighting Pole Once Each 5 $ 8,000.00 - $ 533.33 $ 2,666.67 Description 20 Yr Cycle Unit Amount Cost Per Unit
Times per
Year
Annual Cost
Per Unit Annual Total Cost
Turf Area Monthly Sq Ft $ 0.034 12 $ 0.41 $ -
Shrub Area Monthly Sq Ft - $ 0.025 12 $ 0.30 $ -
Water Monthly Sq Ft - $ 0.018 12 $ 0.22 $ -
Electricity Monthly Meter 1 $ 20.69 12 $ 248.28 $ 248.28 Landscape Trees Annual Each - $ 60.00 1 $ 60.00 $ -
Interior Street Tree Annual Each - $ 60.00 1 $ 60.00 $ - Street Lights (Electricity &
Maint) Monthly Each 7 $ 11.30 12 $ 135.60 $ 949.20
Block Wall Annual Ln Ft 160 $ 0.75 1 $ 0.75 $ 120.00
Project Management Annual Lots 60 $ 40.00 1 $ 40.00 $ 2,400.00 Description 20 Yr Cycle Unit Amount Cost Per Unit
Times per
Cycle
Annual Cost
Per Unit Annual Total Cost
Reclamite (5 year cycle) Twice Sq Yd - $ 0.96 2 $ 0.96 $ - Crack Seal (7 year cycle) Twice Sq Yd - $ 0.68 2 $ 0.68 $ - Cape Seal (15 year cycle) Once Sq Yd - $ 11.16 1 $ 11.16 $ -

2.0' Overlay (20 year cycle) Once Sq Yd - $ 33.42 1 $ 33.42 $ - Total $ 18,009.50
10% $ 1,800.95
Grand Total $ 19,810.45
Number of Lots 60
$ 330.17
Playground Equipment
10% Reserve Fund (Repairs)
Annual Per Lot Assessment
Annual Cost Increase
167
Exhibit “D”
Engineer’s Report
Landscape & Lighting Assessment District 25-04
PRATT FAMILY RANCH 1B
Fiscal Year 2025-26
This assessment district shall be subject to an automatic annual increase derived by the following formula:
year “n” assessment = ($19,810.43) (1.05)
(n-1)
where “n” equals the age of the assessment district with year one (1) being the year that the assessment district was formed;
However, in no case shall the assessment be greater than 1) The actual cost of providing the benefit conferred to each parcel plus any prior years’ deficit and less any carryover, as determined annually or; 2) a 10% increase over the prior year’s assessment.

The reserve fund shall be replenished as necessary to maintain a level of 10% of the estimated maintenance cost so long as the annual assessment change does not exceed the limits identified above.

Example 1) The year four estimated costs are $21,593.36 [a 9% increase over the base year assessment of $19,810.43]. The ceiling on the assessment increase for year four would be $22,933.04 [ceiling = ($19,810.43) (1.05) (4-1)]. The assessment would be set at $21,593.36 or the actual cost of providing the maintenance effort.

Example 2) The year four assessment is estimated at the actual cost of providing the maintenance effort of $22,385.78 [a 7% increase over the previous year assessment and a 13.0% increase over the base year assessment]. The ceiling on the assessment increase for year four would be $22,933.04 [ceiling = $19,810.43) (1.05) (4-1)]. The assessment would be set at $22,933.04 or the actual cost of providing the maintenance effort because it is less than the ceiling amount and the year-to-year increase is less than the 10% cap on increases in any given year.

Example 3) The year four assessment is $21,593.36 [a 9% increase over the base year assessment $19,810.43] and damage occurred to the masonry wall raising the year five assessment to $26,343.90 [a 22% increase over the previous year assessment]. The year five assessment will be capped at $23,752.70, a 10% increase over the previous year and under the ceiling of $24,079.70 [ceiling = ($19,810.43) (1.05) (5-1)]. The difference of $2,591.20 will be recognized as a deficit and carried over into future years’ assessment.
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Exhibit “D”
Engineer’s Report
Landscape & Lighting Assessment District 25-04
PRATT FAMILY RANCH 1B
Fiscal Year 2025-26
City Engineer Certification
I hereby certify that this report was prepared under my supervision and this report is based on information obtained from the improvement plans of the subject development.

Christopher Crawford Date
City Engineer
169
Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 25-0262 Agenda Date: 7/21/2025 Agenda #: 7.

Agenda Item Wording:

Developer Reimbursement Agreement - Authorize the City Manager to execute the reimbursement agreement for road improvements completed with River Run Ranch, Phases 6 & 7 subdivision, located on the north side of East St. Johns Parkway between McAuliff Street and River Run Street.

Prepared by:

Luqman Ragabi, Associate Engineer (559)713-4362, [email protected] Adrian Rubalcaba, Sr. Project Manager (559) 713-4507, adrian.rubalcaba @visalia.city Jason Huckleberry, Engineering & Building Department Director (559)713-4495, [email protected]
Department Recommendation: Staff recommends authorizing the City Manager to execute the reimbursement agreement for right of way and improvements constructed along St Johns Parkway, associated with the River Run Ranch, Phase 6 & 7 subdivision.

Summary:

The City Council authorized the recording of the final map for the River Run Ranch Phases 6 & 7 subdivision on March 17, 2025, creating 92 residential lots. As part of the executed Subdivision Improvement Agreement, the developer was required to construct offsite improvements along St.

Johns Parkway, a designated collector roadway.

St. Johns Parkway is included in the City’s Circulation Element and Transportation Impact Fee (TIF) Program and certain portions of the improvements, such as additional pavement width, right-of-way dedication, and miscellaneous work exceeding the developer’s base responsibilities, are eligible for reimbursement.

The total reimbursement amount is $285,220.83, which will be issued in the form of Transportation Impact Fee credits applied at the time of building permit issuance for homes within the subdivision.

The credits will be distributed incrementally until the full amount has been expended.

Background Discussion:

As a condition of approval for the River Run Ranch Phases 6 & 7 subdivision, the developer entered into a Subdivision Improvement Agreement requiring construction of offsite improvements along St.

Johns Parkway, a collector roadway identified in the City’s Circulation Element. Required improvements included the installation of curb, gutter, pavement, streetlights, and associated infrastructure.

St. Johns Parkway is a funded collector within the City’s Transportation Impact Fee (TIF) Program, certain portions of these required improvements are eligible for reimbursement. Specifically, improvements such as additional pavement width, right-of-way dedication, and miscellaneous work performed beyond the developer’s base responsibilities qualify for reimbursement in the form of TIF Visalia City Council Page 1 of 2 Printed on 7/18/2025
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File #: 25-0262 Agenda Date: 7/21/2025 Agenda #: 7.
credits.

The total reimbursement amount was calculated to be $285,220.83. These credits will be applied incrementally at the time of building permit issuance for homes within the River Run Ranch subdivision until the full reimbursement amount has been reached.

To verify eligibility and cost reasonableness, the Development Reimbursement Review Committee (DRRC), comprised of staff from the Community Development and Finance Departments, reviewed the proposed reimbursement on February 18, 2025. The DRRC confirmed the reimbursement amount was consistent with the City’s costs for comparable capital projects and recommended approval of the reimbursement agreement.

Fiscal Impact: Transportation Impact Fee credits totaling $285,220.83 will be applied to residential building permits within the River Run Ranch 6 & 7 subdivision.

Prior Council Action: On March 17, 2025, Council authorized recordation of the final map for River Run Ranch 6 & 7
Other: On February 18, 2025, the Development Reimbursement Review Committee reviewed and recommended approval of the reimbursement agreement.

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

I move to authorize the City Manager to execute the reimbursement agreement for road improvements completed with River Run Ranch, Phases 6 & 7 subdivision.

Environmental Assessment Status: Complete
CEQA Review: N/A
Deadline for Action: 7/21/2025
Attachments:

1. Aerial Map

2. Agreement
Visalia City Council Page 2 of 2 Printed on 7/18/2025
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Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 25-0264 Agenda Date: 7/21/2025 Agenda #: 8.

Agenda Item Wording:

Community Housing Development Organization Re-certification - Authorize re-certification of Self-Help Enterprises as a Community Housing Development Organization (CHDO); authorize an award for $226,944 in Fiscal Year 2025/2026 HOME funds, as a 55-year residual receipt loan, toward construction of an 80-unit affordable senior housing development known as Crescent Meadows; and authorize the City Manager to execute a letter of commitment for Self-Help Enterprises for Crescent Meadows for an amount up to $1 million (combined Fiscal Year 2025/2026, Fiscal Year 2026/2027, and Fiscal Year 2027/2028 HOME funding), contingent upon available funding.

Prepared by:

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:
1) Authorize the City Manager to execute an agreement re-certifying Self-Help Enterprises, Inc. (SHE) to serve as a Community Housing Development Organization (CHDO) for the City of Visalia HOME funds; and
2) Authorize an award for $226,944 in FY 25/26 HOME funds, contingent upon actual program income received, as a 55-year residual receipt loan for construction of the 80-unit affordable senior housing development known as Crescent Meadows; and
3) Authorize the City Manager to execute a letter of commitment to Self-Help Enterprises for the Crescent Meadows project to provide an amount up to $1 million in HOME funding, contingent upon actual available funds for FY 25/26 = $226,944; FY 26/27 and FY 27/28 = $773,056; and 4) Authorize the City Manager to execute necessary contracts and loan agreements for the Crescent Meadows project, including provisions required to maintain ownership and use.

Summary:

The HOME Final Rule requires that each time the City commits HOME CHDO funds, it must re-certify a nonprofit’s qualifications to be a CHDO and its capacity to own, sponsor, or develop housing per 24 CFR 92.300(a). According to the HOME program requirements, CHDO certifications are based upon meeting the definition of a CHDO and capacity assessment. These certifications are required at the time of commitment and the CHDO is expected to remain a CHDO throughout the project's period of affordability. To satisfy the CHDO requirement, a participating jurisdiction must reserve not less than 15% of the HOME allocation for investment only in housing to be owned, developed, or sponsored by CHDO’s. This reservation must occur within 24 months after the date that HUD notifies the participating jurisdiction of HUD's execution of the HOME grant Agreement. CHDO set-aside funds Visalia City Council Page 1 of 6 Printed on 7/18/2025
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that are not reserved for designated CHDOs within 24 months will be returned to HUD.

SHE is the only State certified CHDO within Tulare County. The City has reviewed SHE’s CHDO recertification documentation and has determined the SHE has the capability to own, develop, or sponsor a housing development project, and is eligible for City Authorization for CHDO recertification. CHDO funds must be committed to CHDO development projects requiring acquisition, construction, or rehabilitation components to be considered a “development” project.

On April 21, 2025, Council approved the 5-year Consolidated Plan (ConPlan) that included approximately $1 million in HOME funds for the development of a HOME-CHDO senior affordable housing project over the span of 3 years (FY 25/26, FY 26/27, and FY 27/28). The requested letter of commitment will memorialize the allocations in the ConPlan. Annual amounts will be brought to Council for appropriation as part of the Annual Action Plan adoption for each program year. The amount of CHDO funding to be provided to SHE is contingent upon the availability of HOME funding.

Background Discussion:

In the FY 2025 Annual Action Plan approved by Council on April 21, 2025, approximately $227k of HOME-CHDO funding was appropriated for a Community Housing Development Organization (CHDO) senior housing project. An additional $773k is estimated to be available in the next 2 HOME grant program years (2026/27 and 2027/28) for a total of up to $1 million spanning the next 3 years.

SHE has submitted a proposal requesting HOME CHDO funding of approximately $1 million to be used for an 80-unit senior affordable housing development known as “Crescent Meadows”. The Crescent Meadows project will provide affordable housing to low-income seniors age 62-years and older at 80% of the area median income level and lower. One June 11, 2025, the Crescent Meadows project completed the Site Plan Review process and has been approved to move forward with an application for a building permit.

Staff recommends awarding the FY 25/26 funds (estimated $227k, contingent upon program income received) to the Cresent Meadows project, as well as the City's commitment (contingent upon availability) to award FY 26/27 and FY 27/28 funds ($773k estimated) which will be available in the next 2 years. Award of these funds would restrict 11 of the 80 project units to occupancy by residents who are at or below 60% of Area Median Income (AMI), and provide local investment in this lowincome housing project, which is an important factor in the application process for additional project funding. SHE has already been awarded grant funding of $28 million towards this project and has applied for State Homekey+ funding to bridge the gap between this amount and the estimated total project cost of $36 million.

To provide the requested funding, staff is asking Council's authorization to negotiate and execute the necessary contracts and agreements, as well as to provide a letter of commitment for the 2026/27 and 2027/28 funding (contingent upon availability) to be used by SHE in support of their application for any additional state or federal funding. A more detailed description of this request and the Crescent Meadow project follows.

Project and Funding Background:

The City of Visalia, as a Participation Jurisdiction (PJ) receives HOME Investment Partnership Program (HOME) funding on an annual basis from the U.S. Department of Housing and Urban Development (HUD). Within 24 months after the date HUD notifies the PJ of HUD’s execution of the HOME agreement, the PJ must reserve not less than 15% of the HOME allocation for investment only in housing to be owned, developed, or sponsored by a Community Housing Development Visalia City Council Page 2 of 6 Printed on 7/18/2025 powered by Legistar™181
File #: 25-0264 Agenda Date: 7/21/2025 Agenda #: 8.
only in housing to be owned, developed, or sponsored by a Community Housing Development Organization (CHDO) per 24 CFR 92.300(a). Each time an award is made to a CHDO, the PJ must certify the organization meets the definition of CHDO and must document that the organization has the capacity to own, develop, or sponsor housing. HOME-CHDO set-aside eligible activities include:
• Acquisition and/or rehabilitation of rental housing; and • New construction of rental housing; and
• Acquisition and/or rehabilitation of homebuyer properties; and • New construction of homebuyer properties; and
• Direct financial assistance to purchasers of HOME-assisted housing that has been developed with HOME funds by the CHDO.

CHDO set-aside funds that are not reserved for designated CHDOs within 24-months will be recaptured by HUD.

On April 21, 2025, Council approved the 5-year Consolidated Plan (ConPlan), which planned the use of FY 2025/26, FY 2026/27, and FY 2027/28 HOME CHDO funds toward development of a HOME CHDO senior housing project. On April 21, 2025, Council approved an estimated $227k in HOME funding based on the estimated 2025/26 annual HOME allocation and program income to be received for a HOME CHDO senior housing development project as planned in the current 5-year ConPlan. As stated in the FY 2025 Annual Action Plan (AAP), any increase or decrease of the FY 2025 HOME annual allocation and/or program income will be an adjustment to the HOME CHDO senior housing project. In the FY 2025 AAP, the CHDO 15% was combined with additional HOME funds to fund a CHDO senior housing project that had not yet been identified and staff planned to return to Council with a potential HOME CHDO senior housing project for Council’s review and approval.

CHDO Certification: The HOME Final Rule requires that each time the City commits HOME CHDO funds, it must re-certify a nonprofit’s qualifications to be a CHDO and its capacity to own, sponsor, or develop housing per 24 CFR 92.300(a). According to the HOME program requirements, CHDO certifications are based upon meeting the definition of a CHDO and capacity assessment. These are required at the time of commitment and the CHDO is expected to remain a CHDO throughout the project's period of affordability. To satisfy the requirement to reserve not less than 15% of the HOME allocation for CHDO projects, funds are reserved when a PJ enters into a written agreement with the CHDO committing the funds to a specific local project.

The City has reviewed SHE’s CHDO re-certification documentation and has determined the SHE has the capability to own, develop, or sponsor a housing development project, and is eligible for City Authorization for CHDO re-certification. CHDO funds must be committed to CHDO development projects requiring acquisition, construction, or rehabilitation components to be considered a “development” project.

Self-Help Enterprises: Self-Help Enterprises, Inc. (SHE) has been headquartered in Visalia since its founding in 1965 and developed single family housing for low-income Visalians as early as 1969.

SHE is currently the only designated CHDO for the City of Visalia. The City has looked for other potential CHDO’s within the region and SHE was found to be the sole organization both interested and eligible for designation as a CHDO within Tulare County. SHE has a strong connection to the low and moderate -income residents of Visalia and has been a great asset as a City designated CHDO.

SHE is a private, non-profit, 501(c)(3) tax exempt corporation established under the laws of the State Visalia City Council Page 3 of 6 Printed on 7/18/2025
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File #: 25-0264 Agenda Date: 7/21/2025 Agenda #: 8.

SHE is a private, non-profit, 501(c)(3) tax exempt corporation established under the laws of the State of California to improve the living conditions and community standards of low-income families. The primary emphasis of the organization since its formation has continuously been the creation of new housing opportunities and the preservation and improvement of existing housing. SHE utilizes the HOME-CHDO funds and program income generated by the repayment of HOME-CHDO funded housing and development loans for the development of additional affordable housing, such as, the 5 single-family homes recently constructed on NW 5th Avenue, and the Loft’s Project at Fort Visalia.

Crescent Meadows: Crescent Meadows is a new affordable senior rental community being developed by Self-Help Enterprises (SHE) in partnership with Visalia Senior Housing (VSH). The proposed project is located at the northwest corner of Ferguson Ave. and N. Dinuba Blvd. Crescent Meadows offers 80 units comprised of one and two bedrooms. The project will be affordable senior housing serving individuals 62 years of age and older, and 24 units will be set aside for individuals experiencing homelessness, or at-risk of homelessness, and will be designated as PSH. The project includes a community center which will provide office space for an on-site manager and resident services staff. Crescent Meadows will be an all-electric project which includes renewable solar PV to offset 100% of the residential and common area electrical, resulting in a project that is also affordable to operate and zero net energy. SHE will also incorporate extensive water conservation measures including highly efficient drip irrigation systems, and low water use landscaping. Site amenities include pickleball courts, accessible drop off/pick up locations, community spaces, and a loop walking trail that connects with the existing Visalia trail system to allow for safe and accessible recreation.

Project partnership with Family Healthcare Network will allow aging-in-place support to extend the length of time residents can remain independently housed.

HOME Funds: The 5-year (FY 2025/26 - 2029/30) approves approximately $1 million in HOME funds for the development of a senior housing project spanning over 3-years. SHE is requesting approximately $1 million in HOME funds which will restrict eleven (11) HOME floating assisted units to senior households at or below 60% AMI level. Staff recommends providing all available FY 2025/26, FY 2026/27, and FY 2027/28 HOME funds to satisfy this request, contingent upon the final award amount in each Annual Action Plan as approved in the 5-year Consolidated Plan. Staff estimates an available $227k in the current FY 25/26, and an additional $773k in FY 26/27 and FY 27/28 for a total commitment of approximately $1 million in HOME funds. The total proposed HOME funding will provide 3% of the total project construction budget, multiplying the investment of these HOME-CHDO funds more than 20 times.

HOME Loan Terms: At the time of the final written agreement, a loan agreement will be executed, referencing all the requirements of HOME funds, including the execution of a Note, which will be provided as a 3% loan to be repaid over a 55-year term from any available residual receipts of the project. If there are no annual residual receipts the loan balance will be forgiven on an annual basis at 1/55 each year. A Deed of Trust and a Restrictive Covenant will be recorded against the property to maintain affordability of the units for 55 years. Eleven (11) floating units will be designated as “HOME assisted” and will be monitored by the City during the term of the covenant. In addition to the HOME affordability requirements, Low-Income Housing Tax Credit funding will maintain a 55-year affordability covenant.

Project Process: This project has already completed project design, and the site plan review process.

The tax credit application was awarded in April 2025. Tax Credit funding requires construction to begin within 6 months of the award. As a result, the project's anticipated construction start date is Visalia City Council Page 4 of 6 Printed on 7/18/2025
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File #: 25-0264 Agenda Date: 7/21/2025 Agenda #: 8.
begin within 6 months of the award. As a result, the project's anticipated construction start date is October 2025 and anticipated completion date is September 2027. The project is aiming to achieve full occupancy by December 2027.

Fiscal Impact: The HOME funding requested for award to this project is $227k of the projected HOME funds and program income to be received during FY 2025/2026 as approved in the FY 2025/26 Annual Action Plan. The additional estimated $773k in FY 2026/27 and FY 2027/28 HOME funds will be requested for appropriation during the adoption of the FY 2026/27 and FY 2027/28 Annual Action Plans in the Spring of 2026 and 2027. The letter of commitment total of $1 million is contingent upon the future award of HOME funds, and no General Fund money is included or requested for this project.

Prior Council Action:

April 21, 2025 - Council approval of the 5-year (FY 2025/26 - 2029/30) Consolidated Plan and FY 2025/26 Annual Action Plan including the use of HOME funds for a HOME-CHDO affordable senior housing project.

Other: None.

Alternatives: None recommended.

Recommended Motion (and Alternative Motions if expected):

Move to:
1) Authorize the City Manager to execute an agreement, re-certifying Self-Help Enterprises, Inc. (SHE) to serve as a Community Housing Development Organization (CHDO) for the City of Visalia under the terms, regulations, of the HOME Program; and 2) Authorize award for approximate $226,944 in FY 25/26 HOME funds contingent upon actual program income received, as a 55-year residual receipt loan, toward construction of an 80-unit affordable senior housing development for Crescent Meadows; and 3) Authorize the City Manager to execute a letter of commitment to Self-Help Enterprises for the Crescent Meadows project to provide an amount up to $1 million in HOME funding, contingent upon actual available funds for FY 25/26, FY 26/27, and FY 27/28; and 4) Authorize the City Manager to execute necessary contracts and loan agreements, including provisions required to maintain ownership and use.

Environmental Assessment Status: Currently in progress.

CEQA Review: N/A
Deadline for Action: 7/21/2025
Attachments:

Attachment A - SHE’s Letter of Request
Attachment B - CDLAC Award Letter
Attachment C - Crescent Meadows Project Summary
Attachment D - COV Draft Commitment Letter
Attachment E - SHE CHDO Application & Checklist
Visalia City Council Page 5 of 6 Printed on 7/18/2025
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File #: 25-0264 Agenda Date: 7/21/2025 Agenda #: 8.

Attachment F - Draft SHE CHDO Agreement
Visalia City Council Page 6 of 6 Printed on 7/18/2025
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187
901 P Street, Suite 213A
Sacramento, CA 95814
p (916) 654-6340
f (916) 654-6033
www.treasurer.ca.gov/ctcac

CALIFORNIA TAX CREDIT ALLOCATION COMMITTEE

MEMBERS

FIONA MA, CPA, CHAIR
State Treasurer
MALIA M. COHEN
State Controller

JOE STEPHENSHAW
Director of Finance

GUSTAVO VELASQUEZ
Director of HCD
VACANT
Executive Director of CalHFA

EXECUTIVE DIRECTOR

MARINA WIANT
Reservation Letter
Tax Exempt
April 8, 2025
Betsy McGovern-Garcia
Crescent Meadows, L.P.
8445 West Elowin Court
Visalia, CA 93291
Email: [email protected]
RE: CA-25-448 / Crescent Meadows
Ferguson Avenue and Dinuba Boulevard
Visalia, CA 93291
Dear Betsy McGovern-Garcia,
The California Tax Credit Allocation Committee (CTCAC), in its role as administrator of the federal and California Low Income Housing Tax Credit programs (Tax Credit programs) established by Section 42 of the Internal Revenue Code of 1986, as amended , and Sections 12206, 17058 and 23610.5 of the California Revenue and Taxation Code, respectively, hereby reserves for the project referenced above low-income housing tax credits in the following amount(s) and under the following conditions and limitations:
$1,445,633 in federal Tax Credits annually for each of ten years (applicable percentage of 4.00%); These credit amounts have been calculated using a qualified basis and applicable percentage identified in the attached staff report. While the actual qualified basis may change, the credit amounts of the reservations stated above can be adjusted for projects requesting credit under Regulation Section 10326 at the time of placed-in-service.

CTCAC has reviewed all documentation required to be submitted before issuance of this letter and finds them to be acceptable and in accordance with the Qualified Allocation Plan. Additionally, CTCAC conducted its initial evaluation to determine the appropriate amount of tax credits needed for financial feasibility and long-term viability.

This evaluation is performed to assess whether development and operating costs are reasonable, that program requirements are being adhered to and that no more tax credits are awarded than are needed to fill the gap left after considering all other committed funding. Any special conditions stated in the attached staff report must be adhered to.
188
Tax Exempt Reservation Letter
April 8, 2025
Crescent Meadows / CA-25-448

This reservation of tax credits is conditioned upon the receipt of a tax-exempt bond allocation no later than April 8, 2025.

CTCAC with an updated
development timetable by either December 31 of the year following the year the project received its reservation of Tax Credits for rehabilitation projects, or by December 31 of the second year following the year the project received its reservation of Tax Credits for new construction projects, as required under Regulation Section 10326(j).

This Reservation is further conditioned upon the project owner's constructing, purchasing, or rehabilitating the project in accordance with the application submitted to CTCAC and upon the owner placing the project in service within the time periods allowed by law and regulation. This Reservation is further conditioned upon the owner posting project signage at the construction site in a manner consistent with criteria outlined on the CTCAC website at: http://www.treasurer.ca.gov/ctcac/signage/memo.pdf. The allocation may be rescinded if satisfactory progress toward completion is not maintained. Within one year from the CTCAC the issuance of Internal
Revenue Service (IRS) Form(s) 8609 and submit the required documentation as specified in CTCAC Regulation Section 10328(e). Prior to issuance of IRS Form 8609, the project owner must submit to CTCAC the following in the form of a CD/DVD/flash drive (Please do not submit these documents in a binder):
an updated application (in MS Excel format) which shows in every respect what changes have occurred or are being proposed from the application upon which this Reservation was made (all changes are subject to approval by the Committee); all documents under Regulation Section 10322(i); and
all documents required at Placed in Service are located on the CTCAC website at:
https://www.treasurer.ca.gov/ctcac/inservice/STOhome.asp Internal Revenue Procedure 94-57 allows owners of qualified housing projects to specify the date on which the gross rent floor described in Section 42(g)(2)(A) of the Internal Revenue Code of 1986, as amended (the "Code") will take effect. The IRS will treat the gross rent floor as taking effect on the date of this reservation under Code Section 42(h)(1). However, the IRS will treat the gross rent floor as taking effect on a building's placed in-service date if the building owner designates that date as the date on which the gross rent floor will take effect for the building. The project owner must make this designation to use the placed in-service date no later than the date on which the building is placed in service. If elected, the CTCAC election form on our website (http://www.treasurer.ca.gov/ctcac/inservice/STOhome.asp) will be required to be submitted with the rest of the items listed above prior to issuance of IRS Form 8609.

Before issuance of IRS Form 8609, the project owner will be required to sign a CTCAC Regulatory Agreement and lease rider, if applicable, which will bind current and future owners to covenants previously agreed to by the project owner and CTCAC. The project will be monitored by CTCAC for the duration of the compliance period to ensure that the project is abiding by all covenants. Projects will be charged a one-time monitoring fee of $700 per unit. This fee must be paid before any tax forms will be issued and/or the Regulatory Agreement will be recorded. (Credits cannot be claimed if the Agreement has not been recorded.)
Within 20 days of the date of this reservation, by 5:00 p.m. on April 28, 2025, the applicant must provide a payment in the amount of $14,456, which is the reservation fee required for this project.

Please submit an electronic payment by visiting the CTCAC website https://www.treasurer.ca.gov/ctcac/. If preferred, a check may be made out to CTCAC. The reservation fee is not refundable.

By accepting this Reservation, the owner understands and accepts the risks that the U.S. Congress, U.S.

Department of the Treasury, or the State of California may change the requirements for the award of tax 189
Tax Exempt Reservation Letter
April 8, 2025
Crescent Meadows / CA-25-448

credits by subsequent enactment of law or regulation. The owner further acknowledges that it has consulted its own tax advisor as to any consequences related to this Reservation or eventual award of tax credits.

Applicant acknowledges that it is under an affirmative obligation to advise CTCAC of any material change in the nature or composition of the owner or the development team or of any of the specifics of the Project set forth in the Application.

Moreover, even after the reservation of tax credits, the amount of such reservation may be adjusted if, upon the initial and subsequent feasibility determinations, CTCAC determines that the Project received more credits than are necessary for financial feasibility of the Project. In addition, CTCAC may rescind a reservation of credits in the event that the maximum amount of credits achievable is insufficient for financial feasibility of the Project.

CTCAC accepts no responsibility for any adverse consequences to the owner if the owner chooses to proceed with the project based upon this Reservation. Upon mutual consent with the CTCAC, the project's Reservation may be canceled, and the credits returned to CTCAC to be reused (IRC Sec. 42(h)(3)(C)(iii)).

The owner is advised that CTCAC is required by law to perform a financial evaluation of your project after it is placed in service and before issuance of tax forms. CTCAC has the responsibility to determine the reasonableness of all costs included in the development of this project. The evaluation and reasonableness determination may result in the denial of any allocation of tax credits or a reduction in the amount of tax credits finally allocated to this project. If the feasibility analysis indicates that less credits are allowable, the credit allocation will be adjusted accordingly, and the excess credits must be returned.

Please examine the provisions of this Reservation carefully and advise me promptly if there are any errors contained herein. If you agree to the terms of this Reservation, please sign, and date this form and deliver the reservation letter and reservation fee no later than 5:00 p.m. on April 28, 2025, to the CTCAC at 901 P Street, Suite 213A, Sacramento, CA 95814. You are encouraged to keep a copy of this document for your records.

Executed this 8th day of April 2025.

By: __________________________
Marina Wiant
Executive Director
Accepted this _____day of ________________, 2025.

By: ___________________________
(signature) ___________________________
(type or print name) ___________________________
(type or print title)
190
Crescent Meadows Project Summary
Crescent Meadows is a new, affordable, senior rental community being developed by Self-Help Enterprises (SHE) in partnership with a local, community-based, nonprofit developer, Visalia Senior Housing. The proposed project is located on 6.36 acres on the northwest corner of Ferguson Ave. And N. Dinuba Blvd in Visalia, CA. Crescent Meadows offers 80 units made up of one and two-bedroom floorplans to serve seniors. There will be 64 one-bedroom units and 16 two-bedrooms units for seniors over the age of 62. The project includes a community building which will provide office space for the full-time on-site manager and resident services staff. The community building will be available for gatherings and community workshops and will also provide a common space for the residents and their guests.

Crescent Meadows will serve residents earning 30%,40%,50% and 80% of area median income. This opportunity allows seniors to pay an affordable rent, therefore allowing them to achieve housing housing stability and the ability to pursue other financial goals. Crescent Meadows will be an all-electric project which includes renewable solar PV to off-set 100% of the residential and common area electrical loads, resulting in a project that is also affordable to operate and zero net energy. SHE will also incorporate extensive water conservation measures including highly efficient drip irrigation systems, thoughtful hardscapes, and low water use landscaping.

The partnership that evolved to develop Crescent Meadows highlights the importance of collaboration between nonprofits in the affordable housing space. Visalia Senior Housing, the local, community-based developer has the sole mission of providing housing to low-income, elderly people. Self-Help Enterprises was brought in as a partner due to the organizations extensive experience. Since 1965, SHE has helped more than 6,500 families to build their own homes, rehabilitated over 6,900 unsafe homes, developed over 2,600 units of affordable rental housing, and provided technical assistance for reliable access to safe drinking water and sanitary sewer infrastructure to over 33,900 individuals in 175 small communities. SHE’s commitment to providing resources and training for individuals builds the capacity of highly effective leaders in communities that also promote collaborative solutions for improving communities. These combined efforts have touched the lives of over 70,000 families, providing security and stability for families and building more productive communities.
191
200 N. Santa Fe St. • Visalia, CA 93292 P 559.713.4314 W visalia.gov

Administration Department
Office of the City Manager

July 21, 2025
Self-Help Enterprises
Attn: Tom Collishaw
8445 W. Elowin Ct.

Visalia, CA 93291
Re: HOME Investment Partnership Program (HOME) Community Housing Development Organization (CHDO) Funding Commitment for the Crescent Meadows Project.

Dear Mr. Collishaw:

This letter is to signify the City of Visalia's support of the Crescent Meadows (Project), located at Northwest corner of Ferguson Ave. and North Dinuba Blvd., Visalia, CA 93291. The City of Visalia has approximately $226,994 in Fiscal Year 2025/26 and hereby commits an additional estimated $773,056 in Fiscal Years 2026/27 and 2027/28 HOME funds for a total City of Visalia commitment up to $1,000,000 in HOME funds, contingent upon HOME annual allocation and program income received, toward development of the Crescent Meadows Project. The funding will be in the form of a residual receipt loan, bearing an interest rate of three percent (3%) over a 55-year term subject to compliance with all HOME program requirements.

The proposed project will serve households with incomes at or below 60% of the area median income (AMI) level and will be required to meet all HOME income and rental restrictions as well as HOME regulations.

The City of Visalia looks forward to working with Self-Help Enterprises as they bring critical housing to our community. If you have any questions, please contact me via email at [email protected].

Sincerely,
Leslie Caviglia
City Manager
192
CHDO Application (continued)
City of Visalia CHDO Certification Page 10

CITY OF VISALIA CHDO APPLICATION
Organization: ______________________________ Federal Tax ID (EIN): ________________ Contact Person: ______________________________ Phone #: __________________________ Title: _______________________________________ E-Mail: ____________________________ Street Address: _______________________________ Web Site: _________________________ City/State & Zip: _______________________________ DUNS #: __________________________ Board Composition: Attach a complete list of Board Members at Tab M, indicating name, Board position and if they are a low-income representative or public official. Certification required for lowincome representative. The Board Member Certification Form is located at the end of this document.

Proposed CHDO Project: _____________________________________________________________ Proposed CHDO Project Address: ______________________________________________________ Proposed CHDO Project Major Funding Sources:

Funding Source
Indicate whether State,
Federal or Other
Funding
Secured (Y/N) Amount

Total $
Self-Help Enterprises 94-1592676
Betsy McGovern-Garcia (559) 802-1653
Vice President [email protected]
8445 W. Elowin Court selfhelpenterprises.org
Visalia,CA, 93291 056179906
Crescent Meadows
NW corner of Ferguson Ave. And N. Dinuba Blvd in Visalia, CA HCD - NHTF Federal Y $5,713,291
Tulare County - REAP State Y $1,369,665
7,082,956
193
CHDO Application (continued)
City of Visalia CHDO Certification Page 11
CHDO’s must serve a specific, clearly defined geographic area. They do not need to represent a single neighborhood but may include in their service area an entire community, i.e., city, town, village, county, or multicounty area but not the whole state, as long as they meet all other CHDO requirements.

Current defined service area (i.e., before the proposed CHDO set-aside project): ___________________________________________________________________________________ Name, address, and county of the CHDO set-aside project: ____________________________________ Is the Executive Director experienced in the CHDO activity for which you intend to exercise a CHDO designation? Yes No
Are others on staff experienced in the CHDO activity for which you intend to use a CHDO designation? Yes No
If staff is not experienced in housing development, has a qualified consultant been hired to train employees of the CHDO in HOME development activities during the first year of operation as a CHDO? Yes No N/A
Number of full-time employees: ________________ Professional: ____________________ Parent organization, if applicable: _________________________________________________ IRS Tax Status (check one) 501(c)3 501(c)4 905 subordinate Date of Incorporation: ______________________________
Based on descriptions on pages 5 and 7 of the Policies and Procedures the CHDO expects to pursue the following CHDO roles (check all that apply):

Rental Owner
Rental Developer
Rental Sponsor – Scenario 1 (see 5.2.3.1 on page 14)
Rental Sponsor – Scenario 2 (see 5.2.3.2 on page 14)
Homeownership Developer
Crescent Meadows,NW corner of Ferguson Ave. And N. Dinuba Blvd in Visalia, CA,93291 200
1965
San Joaquin Valley
194
City of Visalia CHDO Certification Page 12
CHDO Requirements Rule Citation
Requirement
satisfied &
documented

ORGANIZATIONAL REQUIREMENTS

1. Legal structure 1.1. The organization is organized under state or local law. §92.2 CHDO Definition ¶ (1)

1.2. The organization has among its purposes the provision of decent housing that is affordable to low-income and moderate-income persons.
§92.2 CHDO
Definition ¶ (7)

1.3. The organization has no part of its net earnings inuring to the benefit of any member, founder, contributor, or individual.
§92.2 CHDO
Definition ¶ (2)

1.4. The organization is not under the control or direction by any individual or entity seeking to derive profit or gain.
§92.2 CHDO
Definition ¶ (3)

1.5. The organization has one of the following IRS tax exempt statuses:

1.5.1. Exemption under 501(c)(3) or 501(c)(4);

1.5.2. Subordinate of a central nonprofit under IRC Section 905; or

1.5.3. A private nonprofit that is a wholly owned subsidiary of an organization that has 501(c)(3) or (c)(4) status and meets the CHDO definition. §92.2 CHDO
Definition ¶ (4)

1.6. The organization is not a governmental entity (any of the following: participating jurisdiction, other jurisdiction, Indian tribe, public housing agency, Indian housing authority, housing finance agency, or redevelopment authority). §92.2 CHDO
Definition ¶ (5)

2. Independence 2.1. Public officials & employees of a governmental entity may comprise no more than 1/3 of the board.
§92.2 CHDO
Definition ¶ (5)

2.2. Officers and employees of a governmental entity cannot be officers (e.g., CEO, CFO, or COO) or employees of a CHDO.
§92.2 CHDO
Definition ¶ (5)

2.3. If the organization was created by a governmental entity, then the governmental entity that created the organization may not appoint more than 1/3 of the board members and board members appointed by the governmental entity may not appoint remaining 2/3.
§92.2 CHDO
Definition ¶ (5)
Applicable

2.4. If the organization was created by a for-profit entity, then 2.4.1 through 2.4.4 apply:

Applicable

2.4.1. The for-profit entity that sponsored or created the organization may not have as its primary purpose the development or management of housing, such as a builder, developer, or real estate management firm. §92.2 CHDO
Definition ¶ (3)(i)

2.4.2. The for-profit entity that created the organization may not appoint more than 1/3 board members, and for-profit-appointed members may not appoint remaining 2/3 of board.
§92.2 CHDO
Definition ¶
(3)(ii)
195
City of Visalia CHDO Certification Page 13
CHDO Requirements Rule Citation
Requirement
satisfied &
documented

2.4.3. Officers and employees of the for-profit entity that created the organization cannot be officers or employees of the CHDO.
§92.2 CHDO
Definition ¶
(3)(iv)

2.4.4. The organization must be free to contract for goods & services with others. §92.2 CHDO Definition ¶
(3)(iii)

3. Accountability to the Low-Income Community

3.1. The organization must have a designated service area (i.e., the “community” in which it produces housing). A community can be a neighborhood or neighborhoods, city, county, metropolitan area, or multi-county area (but not the entire State).
§92.2 CHDO
Definition ¶ (8)(i)

3.2. At least 1/3 of the board members are: 1) low-income; 2) residents of a lowincome neighborhood; or 3) elected representatives of a low-income neighborhood organization.
§92.2 CHDO
Definition ¶ (8)(i)

3.3. The organization has a formally adopted process for low-income beneficiaries to advise it on decisions regarding design, siting, development, and management of housing.
§92.2 CHDO
Definition ¶
(8)(ii)

3.4. The organization has at least 1 year of serving the community, or, if it is formed by local churches, service organizations, or neighborhood organizations, its parent organization meets this requirement.
§92.2 CHDO
Definition ¶ (10)

4. Capacity

4.1. The organization has financial management systems that conform to 2 CFR 200.302 and 200.303
§92.2 CHDO
Definition ¶ (6)

4.2. The organization has paid employees with demonstrated experience relevant to the CHDO’s role in undertaking the HOME activity to be funded. (Note: this does not include volunteers, board members, donated or shared staff, or consultants – except as described in 4.1.1. below.) §92.2 CHDO
Definition ¶ (9)

4.1.1. During the first year of an organization’s funding as a CHDO only, capacity can be demonstrated through a contract with a consultant who has housing development experience to train appropriate key staff of the organization.
§92.2 CHDO
Definition ¶ (9)

CHDO ROLE

5. CHDO set-aside project
CHDOs can undertake either homebuyer or rental projects, as described below, with CHDO set-aside funds:

Applicable

5.1. Homebuyer projects in accordance with §92.254
To qualify under CHDO set-aside, must meet 5.1.1 and 5.1.2:

Applicable
196
City of Visalia CHDO Certification Page 14
CHDO Requirements Rule Citation
Requirement
satisfied &
documented

5.1.1. Developer: The organization is or will be the owner in fee simple and the developer of new or rehabilitated units for sale to low-income buyers §92.300(a)(6)

5.1.2. The organization will control the development process including, at a minimum, arranging financing for the project and being in sole charge of construction.
§92.300(a)(6)(i)

5.2. Rental projects in accordance with §92.252
To qualify under CHDO set-aside, must meet one of the following:

Applicable

5.2.1. Own: The organization is or will be owner in fee simple absolute (or will hold a long-term ground lease) for at least the period of affordability. If a project involves rehabilitation or construction, the organization will oversee all aspects of development.
§92.300(a)(2)

5.2.2. Develop: The organization is or will be owner in fee simple absolute (or will hold a long-term ground lease) for at least the period of affordability and will be in sole charge of all aspects of the development process. §92.300(a)(3)

5.2.3. Sponsor:

Must meet one of the following:

Applicable

5.2.3.1. The organization will own and develop project that it will convey at a predetermined time after completion to a designated private nonprofit (that was not created by a governmental entity). §92.300(a)(5)

5.2.3.2. The project will be owned and/or developed by an eligible CHDO affiliate, including:

A wholly owned subsidiary of the CHDO; or
A limited partnership of which the CHDO or its wholly owned subsidiary is the sole general partner; or
A limited liability company of which the CHDO or its wholly owned subsidiary is the sole managing member.
§92.300(a)(4)

CHDO PREDEVELOPMENT

6. CHDO pre-development loan
If a project specific pre-development loan is being provided, in addition to meeting CHDO qualification listed in Items 1 4 above and having a set-aside eligible project under Item 5, the predevelopment loan must designated as one of following two loan types:

Applicable

6.1. TA/site control loan: The loan is for allowable costs specified in §92.301(a)(2) for planning an eligible set-aside project.
§92.301(a)

6.1.1. Document the environmental exemption under 24 CFR 58.34(a) and/or

58.35(b).
§92.352

6.2 Seed money loan: The loan is for allowable preconstruction costs specified in §92.301(b)(1) for planning an eligible set-aside project. §92.301(b)
197
City of Visalia CHDO Certification Page 15
CHDO Requirements Rule Citation
Requirement
satisfied &
documented

6.2.1 Document the environmental exemption under 24 CFR 58.34(a) and/or

58.35(b).
§92.352

CHDO OPERATING

7. CHDO operating expenses
If CHDO operating expenses are being provided, the organization must meet the CHDO qualification requirements listed in Items 1 – 4 above, or the organization must meet requirements in 1-3 and item 4.1 above and be receiving the operating funds specifically to hire staff to meet the requirements in 4.2 above.

In addition, the CHDO must meet the following requirements §92.208(c)
Applicable

7.1. The organization is funded from the set-aside for a project under development, or is reasonably expected to be funded from the CHDO set-aside within 24 months
§92.300(e)

7.2. The operating expense funds will be used for eligible operating costs that are reasonable and necessary
§92.208(a)

7.3. Operating expense funding (including from other PJs and any Pass-Through funding) in the fiscal year will not exceed the greater of $50,000 or 50% of the organization’s total operating expenses in that year
§92.300(f)

CHDO CERTIFICATION

8. CHDO Certification - Applicant certifies that the information provided herein is true and correct.

The organization meets all CHDO regulatory thresholds, AND one or more of the following:

The organization has a project that meets the project eligibility requirements of 92.300 for a reservation of CHDO set-aside funds.

The organization has a project that qualifies for a pre-development loan for eligible costs under 92.301.

The organization qualifies for Operating Expenses.

Name: ______________________________________________________________________ Title: _______________________________________________________________________ Signature: ___________________________________________________ Date: _____________________ Tom Collishaw
President / CEO
198
1 Attachment “F”
Draft

COMMUNITY HOME INVESTMENT PARTNERSHIP
(Standard Community Housing Development Organization (CHDO Agreement))

AGREEMENT BETWEEN

THE CITY OF VISALIA

AND SELF-HELP ENTERPRISES
THIS AGREEMENT, is entered into this 1
st day of ______, 2025 (the
“Effective Date”) by and between the City of Visalia, (hereafter “City”) and Self-Help Enterprise (“SHE”), a Community Housing Development Organization, (hereafter “CHDO”), as follows:

RECITALS
WHEREAS, the City of Visalia (hereafter “City”) has entered into an agreement to receive funds under the HOME Investment Partnership Program (hereinafter called the “HOME” Program) from the U. S. Department (hereinafter called “HUD”); and WHEREAS, the City has set aside (reserved) a portion of its HOME program funds for use by Community Housing Development Organizations (CHDO) in accordance with the National Affordable Housing Act of 1990, as amended (hereinafter the “Act”); and
WHEREAS, City desires to have CHDO perform functions for the City as described herein;
WHEREAS, CHDO is a California, public benefit, non-profit corporation, established for the purpose of assisting in the development, expansion or preservation of affordable housing in the City of Visalia; and
WHEREAS, CHDO warrants and represents that CHDO, through this Agreement, will be engaged in the development, sponsorship or ownership of housing that is designed to assist low-income households as defined by the U.S. Department of Housing and Urban Development (“HUD”) in the City of Visalia; and WHEREAS, CHDO warrants that CHDO has adopted articles of incorporation, by-laws of the organization, board resolution or charter which specifically states CHDO’s commitment to the development of affordable housing; and WHEREAS, CHDO warrants that CHDO is not controlled by a for-profit interest, and has its own staff to carry out the intent of the HOME Investment Partnership Program (“HOME Program”), in conformance with 24 CFR Part 92; and WHEREAS, CHDO warrants that its Board structure reflects the affordable housing interests in the City of Visalia, otherwise meets the low-income requirements of 199
2 the HOME Program, has at a minimum one third of its Board members consisting of either residents of low-income neighborhoods in Visalia, low income residents, or elected representatives of low-income neighborhood organizations, and has by-laws or a board resolution describing the process for obtaining input from low-income neighborhoods or residents, and not more than one third of its Board members are from the public sector; and
WHEREAS, CHDO is considered an owner of a property when it holds valid legal title or has a long-term leasehold interest (99 year minimum), and CHDO may be an owner with one or more individuals, corporations, partnerships, or other legal entities; and
WHEREAS, CHDO warrants that CHDO may be sole owner and have another entity act as developer; and
WHEREAS, CHDO warrants that CHDO can also be the owner and developer of its own project; and
WHEREAS, CHDO may own a property in partnership with either a majority or minority interest, however, CHDO, in partnership with a solely owned for profit or nonprofit subsidiary, must be the managing general partner with effective control (in decision making authority) of the project.

NOW, THEREFORE. in consideration of the mutual covenants and obligations contained herein, including the Attachments, and subject to the terms herein stated, the parties hereto understand and agree as follows:

1. Term of Contract. CHDO shall serve City on a project-by-project basis, pursuant to a separate written agreement for each project. This Agreement shall remain in effect until June 30, 2028, and shall continue in full force and effect so long thereafter as City and CHDO have a separate agreement for a HOME funded project. Upon expiration or termination of all HOIME funded project agreements between City and CHDO, this Agreement shall also expire and terminate.

Funding of any projects through separate agreements or services beyond the term of this Agreement, by any new contract or amendment or extension of this Agreement, have not been authorized and will depend upon the satisfactory performance of this Agreement by CHDO and upon the availability to City of additional funds allocated for such purposes; and neither City nor any employee of City has made any promise or commitment, expressed or implied, that any additional funds will be paid or made available to CHDO for the purpose of this Agreement over and above the funds expressly allocated under the terms of this Agreement. This Agreement shall inure to the benefit of and be binding upon the parties hereto, their heirs, successors, survivors, and assigns.

2. Consolidated Plan Goals. CHDO shall, for the term of this contract, use its best efforts to assist City in implementing the objectives of the HUD Consolidated 200
3 Plan pertaining to the community development and public service needs of lowincome households in the City of Visalia.

The CHDO shall provide the City with information necessary for it to complete any and all compliance reports required by HUD.

3. Reporting. CHDO shall, not less than monthly, report to City, in writing, the actions taken by CHDO toward implementation of the above policies.

CHDO shall provide an annual audit report performed in compliance with OMB Circular A-133.

4. Provision of Services and Programs. CHDO shall work with City to implement additional goals or policies of City related to affordable housing in the Visalia community. Specifically, CHDO shall provide the services and programs in the City of Visalia as shown on Exhibit A to this Agreement. CHDO shall be responsible for meeting all HOME affordability requirements. The City will require repayment of any HOME funds expended in the event HOME affordability requirements are not met. CHDO further agrees to meet all required HOME and/or CDBG project requirements, including documentation of incomes, gender, ethnicity, and sizes of households benefiting from the expenditure of HOME and/or CDBG funds, the per unit amount of HOME dollars invested, maximum and minimum funding requirements, housing quality standards requirements, affirmative marketing requirements, and record keeping requirements. Recordkeeping requirements shall include records for each household assisted, value of property, purchase price and rehabilitation cost, if any. CHDO agrees to monitor all HOME and/or CDBG-funded projects at least monthly to determine on-going compliance with HOME and/or CDBG regulations on the part of recipients of HOME and/or CDBG-funded projects.

5. Payment. City agrees to loan to CHDO funds for purposes consistent with the authorized uses for HOME funds, for the costs incurred by CHDO consistent with the provisions of this Agreement, any project related agreements, and based on available funding, for the programs and services identified in Exhibit “A”.

CHDO agrees to execute a Promissory Note in a form substantially similar to the Promissory Note attached hereto as Exhibit “B,” and Deed of Trust in a form substantially similar to the Deed of Trust attached hereto as Exhibit “B,” evidencing and securing loan(s). CHDO may request disbursement of funds only when funds are needed for payment of eligible costs as evidenced by submission of invoices, receipts, or other documents satisfactory to the City.

6. Use of Funds. Use of funds received pursuant to this Agreement shall be in accordance with the requirements of Title II of the Cranston-Gonzalez National Affordable Housing Act of 1990, 24 CFR Part 92, and other regulations governing the HOME Program, and any amendments or policy revisions thereto which shall become effective during the term of this Agreement. A copy of said 201
4 regulations is incorporated by reference. In addition, CHDO agrees to comply with other applicable laws, including those referred to and incorporated herein.

The CHDO shall repay its award of HOME funds in full to the City from proceeds and/or other project income. The City may waive repayment of the loan in part or in whole, if there are impediments to project development that the City determines are reasonably beyond the control of the CHDO on a case-by-case basis.

7. Program Income. Program income derived from a project, if any, shall revert to City for use in the HOME Program. Program Income is defined at 24 CFR 92.2.

This provision shall survive termination or expiration of this Agreement.

8. Disbursement. The CHDO shall request disbursement of HOME Program funds only at the time funds are needed to pay eligible costs and shall execute with City a project specific agreement memorializing the terms and conditions for same.

Requested funds are limited to the amount needed to cover these costs.

Program Income must be disbursed before requesting grant funds from the City.

For reimbursement of indirect costs, the CHDO shall have on file a cost allocation plan approved by the City.

The sum total of the CHDO reimbursement requests during a given year shall not exceed the amount of the agreed upon annual budget appearing in Exhibit “A”, or, if an amendment to the budget is made, the agreed upon amended budget.

The CHDO shall maintain, submit and make available, to the City, when requested, support documentation with all requests for payment/reimbursement.

9. Method and Place of Giving Notice, Submitting Bills, and Making Payments. All notices, bills, and payments shall be made in writing and may be given by personal delivery or by mail. Notices, bills, and payments sent by mail should be addressed as follows:

City: The City of Visalia
Attention: Housing Division
707 W. Acequia Avenue
Visalia, CA 93291
CHDO: Self Help Enterprises
8445 W. Elowin Ct.

Visalia, CA 93291
and when so addressed, shall be deemed mailed upon deposit in the United States Mail, postage prepaid. In all instances, notices, bills, and payments shall be 202
5 deemed given at the time of actual delivery. Changes may be made in the names and addresses of the person to whom notices, bills and payments are to be given by giving notice pursuant to this paragraph.

10. Assignment/Delegation. Except as provided above, neither party hereto shall assign, sublet, or transfer any interest in or duty under, this Agreement without written consent of the other and no assignment shall be of any force or effect whatsoever unless and until the other party shall have so consented.

11. Subcontracts. CHDO shall cause all of the provisions of this Agreement in its entirety to be included in and made a part of any subcontract executed in the performance of this Agreement. CHDO shall monitor all subcontracted services on a regular basis to ensure contract compliance. CHDO shall undertake to ensure that all subcontracts let in the performance of this Agreement are awarded on a fair and open competition basis. Executed copies of all subcontracts shall be forwarded to City along with a summary description of the selection process.

12. Inspection and Audit. CHDO agrees that City of Visalia, the U.S. Department of Housing and Urban Development (“HUD”), the Auditor General, the Comptroller General of the United States, or any of their duly authorized representatives shall have the right to inspect and/or audit any books, documents, papers, and records of CHDO which are directly pertinent to the services performed under this Agreement. Records for each grant year shall be retained for a period of five (5) years after the final HUD audit for that grant year. Where a period of affordability applies, records shall be retained for 3 years after the affordability period ends. Records covering displacement and acquisition shall be retained for three years after the date persons were displaced or three years from when the final acquisition payment is received, whichever is latest. City may inspect all applicable records and may cause to be audited invoices and supporting data relative to the funds paid by City to CHDO.

13. Monitoring. The City shall evaluate activities and monitor the programs and expenditures of CHDO at least annually to determine compliance with the provisions of this Agreement.

14. Records. The CHDO shall maintain and make available to the City of Visalia, HUD, Auditor General, or any of their duly authorized representatives, such records and accounts, including property, personnel, and financial records, the City and /or State and Federal Agencies, deem necessary to assure a proper accounting for all HOME Program funds, on a monthly, quarterly, and annual basis.

15. Insurance and Hold Harmless. CHDO shall carry workers’ compensation insurance in accordance with workers compensation laws of the State of California. CHDO will indemnify City, its officials and employees against and hold them harmless from any and all liability for damages on account of injury to 203
6 persons or damage to property resulting from or arising out of the performance by CHDO of this Agreement and reimburse City, its officials and employees for all costs, expenses and losses incurred by them in consequence of any claims, demands or causes of action which may be brought against them arising out of the performance by CHDO of this Agreement. CHDO shall furnish City with a Certificate of Insurance with combined single limit of at least $1,000,000 for bodily injuries and property damages on each occurrence. The Certificate of Insurance shall state that the contractual liability assumed under this Agreement is covered and shall provide that ten (10) days notice of cancellation or reduction in coverage shall be given to City. Certificates of said coverage shall be filed with City before any work commences.

The City shall not be liable for any and all claims, actions, suits, charges and judgments whatsoever arising out of the performance or nonperformance of the Agreement by the CHDO, its employees, officers, or agents.

The CHDO shall hold harmless, defend, and indemnify the City, its officers, agents, and employees from all such claims, actions, suits, charges, and judgments under this Agreement, including actions resulting from the use or disbursement of the HOME funds.

16. Termination. This Agreement may be terminated by either party for cause by giving thirty (30) days prior written notice to the other. Any funds advanced by City to CHDO and not expended by CHDO shall be returned to City within thirty (30) days after termination of this Agreement. Any funds due CHDO will be forwarded by City to CHDO. City expressly reserves the right to demand of and take actions to collect from CHDO the repayment to City of any funds disbursed to CHDO under this Agreement, which in the judgment of City were not expended in accordance with the terms of this Agreement. CHDO agrees to promptly refund any such funds upon demand.

City may terminate this Agreement at any time if it determines that one or more of the following conditions exist:
a. An illegal or improper use of funds by CHDO
b. CHDO fails to comply with any term or condition of this Agreement. c. CHDO improperly performs any of the services to be performed pursuant to this Agreement.

Upon receipt of notice from City that one or more of the above conditions exist, CHDO shall prepare and submit to City within thirty (30) days a proposal for the correction of all such conditions. In the event CHDO fails to submit such a proposal or otherwise fails to properly perform this Agreement after notification as hereinabove set forth, City may serve CHDO with written notice of termination of this Agreement. In the event of such termination, City shall be liable only for allowable services rendered 204
7 prior to such termination, but in no event shall City be liable for any services that are not performed in accordance with the terms of this Agreement.

17. Federal Funding. This Agreement is entered into in reliance on representation of the Federal Government that the HOME Program will continue to be funded.

Notwithstanding any other provision of this Agreement, City retains the right in its sole discretion and without notice to terminate or reduce the amount payable to CHDO under this Agreement in the event that the Federal Government does not fund the HOME Program in the amount projected at the time this Agreement is executed.

18. Affirmative Marketing. Affirmative marketing steps shall consist of actions to provide information and otherwise attract eligible persons in the housing market to the available housing without regard to race, color, national origin, sex, religion, familial status, or disability.

19. Civil Rights Act. During the performance of this Agreement, the CHDO assures that no otherwise qualified person shall be excluded from participation or employment, denied program benefits, or be subjected to discrimination based on race, color, national origin, sex, handicap, under any program or activity funded by this Agreement, as required by Title VI of the Civil Rights Act of 1964, Title I of the Housing and Community Development Act of 1974, as amended, and the Age Discrimination Act of 1975, and all implementing regulations.

20. Section 3 Requirements. The work to be performed under this Agreement is on a project-by-project basis, financed under a program providing direct federal financial assistance from the Department of Housing and Urban Development and is subject to the requirements of Section 3 of the Housing and Urban Development Act of 1968, as amended by the Housing and Community Development Act of 1992. The purpose of Section 3 is to ensure that economic opportunities, most importantly employment, generated by certain HUD financial assistance shall be directed to low- and very low-income persons, particularly those who are recipients of government assistance for housing or residents of the community in which the Federal assistance is spent, per 24 CFR Part 75.

The parties to this Agreement will comply with the provisions of said Section 3 and the regulations issued pursuant thereto by the Secretary of Housing and Urban Development set forth in 24 CFR Part 75, and all applicable rules and orders of the Department of Housing and Community Development issued thereunder prior to the execution of this Agreement. The parties to this Agreement certify and agree that they are under no contractual or other disability which would prevent them from complying with these requirements.

CHDO will send to each labor organization or representative of workers with which it has a collective bargaining agreement or other contract or understanding, if any, a notice advertising to the said labor organization or worker’s 205
8 representative of its commitments under this Section 3 clause and shall post copies of the notice in conspicuous places available to employees and applicants for employment or training.

CHDO will include these Section 3 clauses in every contract and subcontract for work in connection with the project and will, at the direction of the State or HUD, take appropriate action pursuant to the contract upon a finding that any Contractor or subcontractor is in violation of regulations issued by the Secretary of Housing and Urban Development, 24 CFR Part 75 and will not let any contract unless the Contractor or subcontractor has first provided it with a preliminary statement of ability to comply with the requirements of these regulations.

Compliance with the provision of Section 3, the regulations set forth in 24 CFR Part 75, and all applicable rules and orders of the Department issued thereunder prior to the execution of the Agreement shall be a condition of the federal financial assistance provided to the project, binding upon CHDO, its successors, and assigns. Failure to fulfill these requirements shall subject CHDO, its contractors and subcontractors, its successors, and assigns to those sanctions specified by the grant or contract through which federal assistance is provided, and to such sanctions as are specified by 24 CFR Part 75.

21. Fair Employment and Housing Act. CHDO and subcontractors shall comply with the provisions of the Fair Employment and Housing Act (Government Code, Section 12900 et seq.) and the applicable regulations promulgated thereunder (California Code of Regulations, Title 2, Section 7258.0 et seq.) The applicable regulations of the Fair Employment and Housing Commission implementing Government Code, Section 12990 (a-f), set forth in Chapter 5 of Division 4 of Title 2 of the California Code of Regulations are incorporated into this Agreement by reference and made a part hereof as if set forth in full. CHDO and its subcontractors shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreement. CHDO shall include the nondiscrimination and compliance provisions of this clause in all subcontracts to perform work under the contract.

22. Equal Opportunity in Participation. In conformance with all requirements imposed by or pursuant to 24 CFR 92.350 and other local, state and federal law, no person in the United States shall on the ground of race, color, religion, sex, age, handicap, disability, ancestry, national origin, citizenship status, or any other basis prohibited by applicable law be excluded from participation in, be denied the benefits of, or be subjected to discrimination under, any program or activity funded in whole or in part with HOME funds.

Specific (not exclusive) Discriminatory Actions Prohibited:
206
9 The CHDO may not directly or through contractual or other arrangements, on the ground of race, color, religion, ancestry, national origin, citizenship status, age, handicap, disability, sex, or any other basis prohibited by applicable law:

A. Deny any facilities, services, financial aid, or other benefits provided under the program or activity.

B. Provide any facilities, services, financial aid, or other benefits which are different, or are provided in a different form from that provided to others under the program or activity.

C. Subject to segregated or separate treatment in any facility in, or in any matter or process related to receipt of any service or benefit under the program or activity.

D. Restrict in any way access to, or in the enjoyment of any advantage or privilege enjoyed by others in connection with facilities, services, financial aid or other benefits under the program or activity.

E. Treat an individual differently from others in determining whether the individual satisfies any admission, enrollment, eligibility, membership, or other requirement or condition which the individual must meet in order to be provided any facilities, services, or other benefit provided under the program or activity.

F. Deny an opportunity to participate in a program or activity as an employee.

23. Labor Standards. In the event that CHDO’s project involves construction on more than 12 units under the HOME Program, or more than 8 units under the CDBG Program, and the contract work is more than $2,000, or in the event CHDO is utilizing CDBG funds for non-residential construction purposes and the amount funded is over $2,000, CHDO agrees to comply with and be responsible for all Davis-Bacon wage requirements and applicable HUD Labor Standards.

CHDO further agrees to comply with the Copeland Act (Anti-Kickback Act) in its activities and programs.

24. HOME Subsidy Layering/Match Requirement. CHDO agrees to evaluate projects to ensure that no more than the necessary amount of federal funds is invested in any one project than is necessary in accordance with HUD CDP Notices. CHDO agrees to provide for and comply with HUD match requirements for the HOME Program for all HOME-funded projects at a rate of twenty-five percent (25%) match for every dollar of HOME funds used for projects. CHDO agrees to provide a narrative summary of match requirements on an annual basis to City. 207
10 25. Environmental Requirements. CHDO agrees to comply with the environmental review requirements in 24 CFR Part 58.35; Executive Order 11988 relating to the evaluation of flood hazards; Executive Order 11288 relating to the prevention, control, and abatement of water pollution; and Section 102(a) of the Flood Disaster Protection Act of 1973 in the implementation of CHDO activities.

26. Acquisition and Relocation Requirements. CHDO agrees to comply with the acquisition and relocation requirements in Section 104(D) and the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 in accordance with HUD/CPD Handbook 1378.

27. Lobbying Restrictions. CHDO agrees, to the best of its knowledge and belief:

No Federal appropriated funds have been paid or will be paid, by or on behalf of it, to any person for influencing or attempting to influence an officer or employee of any City, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement;
If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any City, a Member of congress, an officer or employee of Congress, or an employee of a Member of Congress, in connection with this Federal contract, grant, loan, or cooperative agreement, it will complete and submit Standard Form LLL, “Disclosure Form to Report Lobbying,” in accordance with its instructions; and
It will require that the language of this paragraph be included in the award documents for all subawards at all tiers (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all contractors shall certify and disclose accordingly.

28. Other Provisions. CHDO further agrees to comply with Subpart K of 24 CFR 570 (pertaining to affirmatively furthering fair housing, lead-based paint, flood mitigation, conflict of interest, and other administrative policies) attached hereto as Exhibit C; 24 CFR 85 (“Common Rule”) and 2 CFR Part 200 (pertaining to Uniform Administrative Requirements); Federal 2 CFR Part 230 (OMB Circular A-122 Accounting principles for non-profit organizations); Federal OMB Circular A-110 (financial principles); Section 109 of the Housing and Community Development Act of 1974 (regarding non-discrimination) and the regulations issued pursuant thereto; Section 3 of the Housing and Urban Development Act of 1968 (regarding fair housing and equal opportunity), as amended; Executive Order 11063, as amended by Executive Order 12259 and implementing 208
11 regulations at 24 CFR Part 107 (regarding equal opportunity in housing); Section 504 of the Rehabilitation Act of 1973 (regarding affirmative action for handicapped workers, as amended and implementing regulations; the Age Discrimination Act of 1975 as amended and implementing regulations; Title VII, Civil Rights Act of 1964 and Title VIII of the Civil Rights Act of 1968 as amended; Executive Order 11246, as amended by Executive Orders 11375 and 12086 and implementing regulations at 41 CFR Chapter 60 (pertaining to special equal opportunity provisions) the affirmative marketing non-discrimination and minority and women’s outreach requirements contained in 24 CFR 92.350 and

92.351 and Executive Orders 11625, 12138, and 12432 related thereto.; and all other applicable federal and state regulations pertaining to the use of HOME or CDBG funds. CHDO hereby acknowledges receipt and understanding of the regulations noted above.

29. Independent Contractor. CHDO and its officers, employees and agents shall act at all times in an independent capacity during the time of this Agreement, and shall not act as and shall not be, nor shall they in any manner be construed to be, agents, officers or employees of the City of Visalia.

30. Severability. Each paragraph and provision of this Agreement is severable from each other provision, and if any provision or part thereof is declared invalid, the remaining provisions shall nevertheless remain in full force and effect.

31. Provisions Required By Law Deemed Inserted. Each and every provision of law and clause required by law to be inserted in this contract shall be deemed to be inserted herein and the contract shall be read and enforced as though it were included herein, and if through mistake or otherwise any such provision is not inserted, or is not correctly inserted, then upon the application of either party the contract shall forthwith be physically amended to make such insertion or correction.

32. Religious Organizations. In addition to, and not in substitution for, other provisions of this Agreement regarding the provision of services and programs with HOME and/or CDBG funds, pursuant to Title I of the Housing and Community Development Act of 1974, as amended, GRANTEE:

A. Represents that it is, or may be deemed to be, a religious or denominational institution or organization or an organization operated for religious purposes which is supervised or controlled by or in connection with a religious or denomination institution or organization; B. Agrees that, in connection with such services and programs:

1. It will not discriminate against any employee or applicant for employment on the basis of religion and will not limit employment 209
12 or give preference in employment to persons on the basis of religion;

2. It will not discriminate against any person applying for such public services on the basis of religion and will not limit such services or give preference to persons on the basis of religion;

3. It will provide no religious instruction or counseling, conduct no religious worship or services, engage in no religious proselytizing, and exert no other religious influence in the provision of such services or programs;

4. The portion of a facility used to provide services assisted in whole or in part under this Agreement shall contain no sectarian or religious symbols or decorations.

33. Authority to Enter into Agreement:

A. CDHO: CDHO is a corporation duly formed under the laws of the State of California with full power to enter into this Agreement and is duly qualified to transact business in California. The execution and delivery of this Agreement by CDHO has been duly authorized and approved by all corporate action.

B. CITY: City is municipal corporation of the State of California, charter law city organizes and existing pursuant to the laws of the State of California, public body of corporate and politic duly formed with full power to enter into this Agreement and is duly qualified to transact business in California. The execution and delivery of this Agreement by CITY has been duly authorized and approved by all legislative action.

34. Further Action. The Parties agree to perform all further acts, and to execute, acknowledge, and deliver any documents that may be reasonable necessary, appropriate or desirable to carry out the purposes of this Agreement.

35. Waiver. A waiver of any breach of this Agreement by any Party shall not constitute a continuing waiver or a waiver of any subsequent breach of the same or any other provision of this Agreement.

36. Choice of Laws. This Agreement shall be governed by the laws of the State of California and any questions arising hereunder shall be construed or determined according to such law. Venue for the legal action arising from or in connection with this Agreement shall be in Tulare County, California.

37. Attorney’s Fees. In the event either party commences any action for the enforcement of this Agreement, the prevailing party shall be entitled to recovery of its attorney’s fees and court costs incurred in the action brought thereon. 210
13 38. Construction. This Agreement is the product of negotiation and compromise on the part of each party and the parties agree, notwithstanding Civil Code Section 1654, that in the event of uncertainty the language will not be construed against the party causing the uncertainty to exist.

39. Headings. Headings at the beginning of each numbered Section of this Agreement are solely for the convenience of the Parties and are not a part of this Agreement.

40. Entire Agreement/Amendment. This Agreement and items incorporated herein contain all of the agreements of the Parties hereto with respect to the matters contained herein, and no prior agreement or understanding pertaining to any such matter shall be effective for any purpose. No provisions hereof may be amended or modified in any manner whatsoever except by an agreement in writing signed by duly authorized representatives of each of the Parties hereto, except that any modifications which relate to the adjustment of time limitations or the form of documents may be made by joint agreement of the Parties.

WHEREFORE, the parties have executed this Agreement on the date first set above.

Community Housing Development Organization “CHDO”

SELF HELP ENTERPRISES
By:______________________________________
Tom Collishaw, CEO
By:______________________________________
Betsy McGovern-Garcia, Secretary

THE CITY OF VISALIA
By:______________________________________
Leslie Caviglia, City Manager
By:______________________________________
Attest
Approved as to form:

By: ___________________________ By: ____________________________ City Attorney Counsel for SHE
211
14 Exhibit “A”
Description of Programs and Services to be Provided
The City will contract with a Visalia approved Community Housing Development Organization (“CHDO”) for the senior affordable housing development within the City of Visalia city limits.

Services to be provided:

1. CHDO will develop mulit-family housing to benefit low-income families.

2. CHDO agrees to analyze each property that is subject to purchase as follows:
a. CHDO will research the minimum bid for property.
b. CHDO will estimate costs for infill of the property. c. CHDO will estimate closing costs.
d. CHDO will research tax liens and any other liens that exist on the property.
e. CHDO will research the market values for comparable property sales in the area.
f. CHDO will analyze each project to ensure that the City will realize a return on its investment for the project.

3. CHDO will sign a Promissory Note and Deed of Trust for each property purchased.

4. CHDO will oversee the development of the property.

5. CHDO will oversee the purchase of the property thought the escrow process.

6. CHDO will return to the City the residual receipts amount on the sale of each property after all costs have been paid.

7. CHDO will ensure that the property will benefit families that are at or below 60% median income and comply with all other HUD and HOME Program requirements.

8. HOME regulations are subject to change and reinterpretation by HUD. The CHDO agrees to abide by any interpretations of the HOME regulations by HUD, even if HUD applies such interpretations retroactively.

9. CHDO will provide such reports on a monthly basis to the City of Visalia in order to comply with all HUD and City reporting requirements. 212
15 “Exhibit B”
Form of Promissory Note
$________________
____________(Date)
Visalia, California
FOR VALUE RECEIVED, SELF HELP ENTERPRISES, a California 501(c)3 nonprofit corporation, (the "Maker"), having a physical address of _________________________________________, Visalia, California, 932__ and a mailing address of _____________________________________, Visalia, CA 932__, promises to pay THE CITY OF VISALIA ("Payee"), the principal sum of _____________________________________, or so much of such principal as may be advanced (the "Loan").

1. The Loan. This Loan is made pursuant to that certain Agreement and Declaration of Restrictive Covenants (the "Loan Agreement") among Maker and Payee dated _________________, 2023. The Loan will be used by Maker for the development of that certain real property identified generally as
___________________________________________, STATE OF CALIFORNIA, as more particularly and legally described in the Loan Agreement (the "Property").

2. Security. Payment of this Note is secured by a deed of trust and assignment of rents (the "Deed of Trust") from Maker to Payee upon the Property.

3. Project. Maker will or has constructed a __________________ affordable housing project (the "Project") as described in the Loan Agreement.

4. Maturity Date. This Note shall be forgiven at the rate of 1/30th per year and shall only become due and payable upon failure to comply with the terms and conditions of the Loan Agreement. Upon such occurrence, any amount due and owing on the Loan which has not been forgiven shall be due and payable to Payee. To the extent there are residual receipts from the Project, Maker shall pay 100% of the residual receipts to Payee on an annual basis.

5. Payment. Any payment which becomes due shall be made in lawful money of the United States to Payee c/o the City of Visalia, 707 W. Acequia Avenue, Visalia, California 93291. The place of payment may be changed from time to time as the Payee may from time to time designate in writing.

6. Default. The occurrence of any of the following shall constitute an event of default under this Note: (i) Maker fails to pay any amount due hereunder within 15 days of its due date; or (ii) Any default by Maker under the Deed of Trust, or the 213
16 Agreement and Declaration of Restrictive Covenants recorded against the Property and failure to cure as described in the Agreement and Declaration of Restrictive Covenants.

Upon the occurrence of any event of default, or at any time thereafter, at the option of the Payee hereof, the entire unpaid principal owing on this Note shall become immediately due and payable. This option may be exercised at any time following any such event. Payee's failure to exercise such option shall not constitute a waiver of such option with respect to any subsequent event. Payee's failure in the exercise of any other right or remedy hereunder or under any agreement which secures the indebtedness or is related thereto shall not affect any right or remedy and no single or partial exercise of any such right or remedy shall preclude any further exercise thereof.

7. Default Interest Rate. At all times when Maker is in default hereunder by reason of Maker's failure to pay principal due under this Note or any amounts due under any loan documents securing this Note, the interest rate on the sums as to which Maker is in default (including principal, if Payee has elected to declare it immediately due and payable), shall be the lower of the highest rate then allowed by law or five percent over the prime interest rate announced by Wells Fargo Bank, N.A., as of the date of the default.

8. Waivers. Maker and any endorsers hereof and all others who may become liable for all or any part of this obligation, severally waive presentment for payment, demand and protest and notice of protest, and of dishonor and nonpayment of this Note, and expressly consent to any extension of the time of payment hereof , to the release of any party liable for this obligation, and any such extension or release may be made without notice to any of said parties and without any way affecting or discharging this liability.

9. Costs. Maker agrees to pay immediately upon demand all costs and expenses of Payee including reasonable attorneys' fees, (i) if after default this Note be placed in the hands of an attorney or attorneys for collection, (ii) if after a default hereunder or under the Deed of Trust, Loan Agreement or under any loan document referred to herein Payee finds it necessary or desirable to secure the services or advice of one or more attorneys with regard to collection of this Note against Maker, any guarantor or any other party liable therefore or to the protection of its rights under this Note, the Deed of Trust, the Loan Agreement or other loan document, or (iii) if Payee seeks to have the Property abandoned by or reclaimed from any estate in bankruptcy, or attempts to have any stay or injunction prohibiting the enforcement or collection of the Note or prohibiting the enforcement of the Deed of Trust or any other agreement evidencing or securing this Note lifted by any bankruptcy or other court.

If Payee shall be made a party to or shall reasonably intervene in any action or proceeding, whether in court or before any governmental agency, affecting the Property or the title thereto or the interest of the Payee under the Deed of Trust, including, without limitation, any form of condemnation or eminent domain proceeding, Payee shall be reimbursed by Maker immediately upon demand for all reasonable costs, 214
17 charges and attorneys' fees incurred by Payee in any such case, and the same shall be secured by the Deed of Trust as a further charge and lien upon the Property.

10. Notices. Any notices provided for in this Note shall be given by mailing such notice by certified mail, return receipt requested at the address stated in this Note or at such address as either party may designate by written notice.

11. Successors. This Note shall be binding upon Maker, its successors, and assigns.

12. California Law. This Note shall be construed in accordance with and be governed by the laws of the State of California.

13. Severability. If any provision of this Note shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions hereof shall not in any way be affected or impaired thereby.

14. Nonrecourse. In any action brought to enforce the obligations of Maker under this Note, the Deed of Trust or any other instrument or agreement evidencing, securing or relating to the indebtedness evidenced by this Note, the judgment or decree shall be enforceable against Maker only to the extent of its interest in the Property described in the Deed of Trust or its interest in any other security pledged by Maker as security for this Note, and Payee shall not seek any deficiency judgment against the Maker. The foregoing provisions shall not prevent recourse to the collateral security for the loan or constitute a waiver, release or discharge of or otherwise affect the obligation to pay, any indebtedness evidenced by the loan documents or limit the right of any person to name the Maker or any other person claiming an interest in or right to such collateral as party defendant in any action or suit for judicial foreclosure or in the exercise of any other remedy, including injunctive or other equitable relief, under any of the loan documents so long as no deficiency judgment shall be sought against the Maker.

The foregoing limitation shall not apply to any and all loss, damage, liability, action, cause of action, cost or expense (including without limitation, reasonable attorneys' fees and expenses) incurred by Payee as a result of any (i) fraud or material misrepresentation under or in connection with the loan or any loan document; (ii) intentional bad faith waste of the Property; (iii) losses resulting from Maker's failure to maintain insurance as required under the Deed of Trust; or (iv) misappropriation of any rents, security deposits, insurance proceeds, condemnation awards or any other proceeds derived from the collateral security. If any of the events listed in the foregoing (i) through (iv) occurs, Payee shall have the right to proceed directly against Maker at the time the event giving rise to the recourse liability occurred to recover any and all loss, damage, liability, action, cause of action, cost or expense (including without limitation, reasonable attorneys' fees and expenses) incurred by Payee. 215
18 MAKER:
, 2025 Self Help Enterprises
By:

Its:
216
19 “Exhibit C”
Form of Deed of Trust

RECORDING REQUESTED BY AND
WHEN RECORDED MAIL TO:

The City of Visalia
Attn.: Real Estate Department
315 East Acequia Street
Visalia, CA 93291
(Space above this line for Recorder's use)

DEED OF TRUST, ASSIGNMENT OF RENTS,

SECURITY AGREEMENT AND FIXTURE FILING
THIS DEED OF TRUST is being executed this, __day of , 2025, by the SELF HELP ENTERPRISES, a California non-profit corporation ("Trustor"), to _______________________________ (the "Trustee"), in favor of THE CITY OF VISALIA (the "Beneficiary").

Trustor is the fee owner of the real property (the "property") described in the attached Exhibit A, which is incorporated into this Deed of Trust by reference.

Trustor executes this Deed of Trust in consideration of a loan being made by Beneficiary to Trustor (the "Loan"). The Loan is evidenced by a promissory note dated ________________ herewith in the principal amount of _______________________ executed by Trustor in favor of Beneficiary (the "Note").

In consideration of the Loan, Trustor hereby irrevocably grants, conveys, transfers and assigns to the Trustee, its successors and assigns, in trust, with power of sale and right of entry and possession as provided below, all of their present and future estate, right, title and interest in and to the following described property (the "Property" or the "Premises"):
(A) All of Trustor's estate, right, title and interest in and to the property, and all minerals, oil, gas and other hydrocarbon substances on the property, as well as all Project rights, air rights, water, water rights, and water stock relating to the Property;
(B) All present and future structures, buildings, improvements, appurtenances and fixtures of any kind on the Property, including but not limited to all apparatus, equipment and appliances used in connection with the operation or occupancy of the Property, such as fire sprinklers and alarm systems, heating and air-conditioning systems and facilities used to provide any utility services, refrigeration, ventilation, 217
20 laundry, drying, dishwashing, garbage disposal, stoves, recreation or other services on the property, and all window coverings, drapes and rods, carpeting and floor coverings, it being intended and agreed that all such items will be conclusively considered to be a part of the real property conveyed by this Deed of Trust, whether or not attached or affixed to the Property (the "Improvements");
(C) All appurtenances of the property and all rights of the Trustor in and to any streets, roads or public places, easements or rights-of-way, relating to the Property;
(D) All of the rents, royalties, profits and income of the Property, and all rights of Trustor under all present and future leases affecting the Property, including but not limited to any security deposits;
(E) All proceeds and claims arising on account of any damage to or taking of the Property or any Improvements thereon or any part thereof, and all causes of action and recoveries for any loss or diminution in the value of the Property or any Improvements;
(F) All goods located on the Property and used in the operation or occupancy of the Property or in any construction on the Property but which are not effectively made real property under Clause (B) above, including but not limited to all appliances, furniture and furnishings, building service equipment, and building materials, supplies and equipment;
(G) All general intangibles relating to the Project or use of the Property, including but not limited to all governmental permits relating to construction on the Property, all names under or by which the Property or any Improvements on the Property may at any time be operated or known, and all rights to carry on business under any such names or any variant thereof, and all trademarks and goodwill in any way relating to the property; and
(H) All water stock relating to the Property, all shares of stock or other evidence of ownership of any part of the Property that is owned by the Trustor in common with others, and all documents of membership in any owners' or members' association or similar group having responsibility for managing or operating any part of the Property.

This instrument secures:
(1) The payment and performance of the Trustor's indebtedness and obligations under the Note including all extensions, renewals, modifications, amendments and replacements of the Note;
(2) The payment and performance of the Trustor's obligations under this Deed of Trust;
218
21 (3) The payment of all sums advanced or paid out by the Beneficiary or the Trustee under or pursuant to any provision of this Deed of Trust, together with interest thereon as provided herein;
(4) The payment of the principal and interest on all other future loans or advances made by the Beneficiary to the Trustor (or any successor in interest to the Trustor as the owner of all or any part of the Property) when the promissory note evidencing the loan or advance specifically states that it is secured by this Deed of Trust ("Future Advances"), including all extensions, renewals, modifications, amendments and replacements of any Future Advances; (5) The payment and performance of the Trustor's obligations under the Agreement and Declaration of Restrictive Covenants executed by Trustor, dated (the "Declaration");
(6) The payment and performance of each and every obligation, covenant, and agreement of Trustor contained under all other present and future agreements executed by Trustor in favor of Beneficiary and relating to the Note or the Loan, including without limitation, the Loan Agreement executed among Trustor and Beneficiary (as such documents may be amended, modified or supplemented from time to time, the "Related Documents").

This Deed of Trust, the Note, the Declaration, the Related Documents and any other instrument given to evidence or further secure the payment and performance of any obligation secured hereby may hereafter be referred to as the "Loan Documents".

ARTICLE I

COVENANTS OF TRUSTOR
To protect the security of this Deed of Trust, the Trustor agrees as follows:

1.01 Performance. Trustor will pay and perform all indebtedness and obligations that are secured by this Deed of Trust in accordance with their terms. All sums payable by Trustor hereunder shall be paid without notice, demand, counterclaim, offset, deduction, or defense.

1.02 Insurance. Trustor will maintain, or cause to be maintained, in force on the Property (a) hazard insurance against loss or damage to the Improvements and Personal Property by fire and any of the risks covered by "fire and extended coverage" insurance, (b) commercial general liability insurance, (c) such other insurance, and in such amounts, as may from time to time be reasonably required by Beneficiary against the same or other hazards, including without limitation flood insurance, and (d) any other insurance required by law. The insurance policies must be satisfactory to the Beneficiary as to amount, form, deductibles, and insurer, and must cover all risks Beneficiary reasonably requires. With respect to public liability insurance, Beneficiary shall be named as an additional insured, and as to Beneficiary such insurance shall be primary and noncontributing in the event of loss with any other insurance Beneficiary may carry. 219
22 Subject to the rights of the senior lender, the hazard insurance policy must contain a standard mortgagee clause satisfactory to the Beneficiary making all losses payable to the Beneficiary. All such insurance policies may only be canceled or modified upon not less than 30 days prior written notice to the Beneficiary. Certificates of all such insurance satisfactory to the Beneficiary and at the request of Beneficiary, such insurance policies, together with receipts for the payment of premiums, are to be delivered to and held by the Beneficiary. Certificates of all renewal and replacement policies must be delivered to the Beneficiary at least 15 days before expiration of the old policies. Approval, disapproval or acceptance of any insurance by the Beneficiary will not be a representation of the solvency of any insurer, the sufficiency of any amount of insurance or the form or legal sufficiency of any insurance contracts, and Trustor hereby expressly assumes full responsibility for and liability, if any, with respect thereto.

1.03 Proceeds. Subject to the rights of the senior lender, all insurance proceeds on the Property, and all causes of action, claims, compensation, awards and recoveries for any damage, condemnation or taking of all or any part of the Property or for any damage or injury to it or for any loss or diminution in value of the Property, are hereby assigned to and shall be paid to the Beneficiary. Trustor, upon obtaining knowledge of the institution of any such proceedings or of any damage to the Property, will immediately notify the Beneficiary in writing. The Beneficiary may participate in any suits or proceedings relating to any such proceeds, causes of action, claims, compensation, awards, or recoveries and may make any compromise or settlement thereof and may join with Trustor in adjusting any loss covered by insurance. The Beneficiary will apply any sums received by it under this paragraph first to the payment of all of its costs and expenses (including but not limited to legal fees and disbursements) incurred in obtaining those sums, and then, in its absolute discretion (subject to the following paragraph) and without regard to the adequacy of its security, to the payment of the indebtedness and obligations secured by this Deed of Trust or to Trustor for restoration or repair of the Property. Any application of such amounts or any portion thereof to the indebtedness secured hereby shall not be construed to cure or waive any default or notice of default hereunder or invalidate any act done pursuant to any such notice or default.

In the event Trustor is not in default hereunder and the following conditions are satisfied, Beneficiary shall make such remaining proceeds available to Trustor to restore the Property: (i) the Beneficiary shall be furnished with an estimate for its approval of the cost of restoration or repair accompanied by an architect's certification as to such costs and appropriate final plans and specifications for reconstruction of the improvements for approval by the Beneficiary; (ii) the improvements so restored or repaired shall be of substantially the same character and value as the improvements prior to damage or destruction and proper for the purposes for which they were originally erected; (iii) Trustor shall proceed forthwith with the completion of construction of the improvements, including the necessary work of restoration, in accordance with plans, specifications and drawings submitted to and approved by the Beneficiary; (iv) any monies which the Beneficiary makes available for restoration shall be disbursed in accordance with standard construction lending practice or in any other manner approved by the Beneficiary; (v) Trustor shall furnish the beneficiary with evidence satisfactory to the Beneficiary that all improvements so restored and/or repaired and their contemplated 220
23 use fully comply with all zoning, environmental and building laws, ordinances and regulations, and with all other applicable federal, state and municipal laws and requirements; and (vi) if the estimated costs of reconstruction shall exceed the proceeds available, Trustor shall furnish a satisfactory bond of completion or such cash deposits or other evidence satisfactory to the Beneficiary of Trustor's ability to meet such excess costs.

1.04 Payment of Taxes and Claims. Trustor agree to pay when due all taxes and assessments which are or may become a lien on the Property and any bonds, fees, liens, charges, fines, impositions and other items which are attributable to or which are assessed against the Property or its rents, royalties, profits and income ("Taxes"). Trustor also agrees to pay when due all lawful claims and demands of mechanics, materialmen, laborers and others for any work performed or materials delivered for the Property ("Claims").

Trustor, at its expense, may contest, by appropriate proceedings conducted in good faith and with due diligence, the amount or validity, in whole or in part, of any Taxes or Claims, provided (i) Trustor shall have notified Beneficiary prior to the commencement of such proceedings, (ii) in the case of any unpaid Taxes or Claims, such proceedings shall suspend the collection thereof from Trustor, Beneficiary and the Property, and shall not constitute a presently enforceable lien against the Property during the pendency of such contest, (iii) neither the Property nor any part thereof nor any interest therein will be in danger of being sold, forfeited, terminated, canceled or lost, (iv) such proceedings shall not have an adverse effect on the lien or security interest created hereby or upon the enforcement of any provisions of the Loan Documents, and (v) if Beneficiary shall so require, Trustor shall have deposited with Beneficiary such security reasonably necessary for payment of the contested Taxes or Claims, with interest and penalties and Beneficiary's expenses.

1.05 Impounds. Beneficiary may, at its option to be exercised prior to or upon the recordation of this Deed of Trust or thereafter upon 30 days' written notice to Trustor, require the deposit with Beneficiary or its designee by Trustor, at the time of each payment of an installment of interest, if any, or principal under the Note, of an additional amount sufficient to discharge the obligations of Trustor under Sections 1.02 and 1.04 hereof as and when they become due. The determination of the amount payable and of the fractional part thereof to be deposited with Beneficiary shall be made by Beneficiary in its sole discretion. Said amounts shall not be considered to be held by Beneficiary or its designee in trust nor as agent of Trustor, shall bear interest at the rate of interest customarily paid by Beneficiary, and shall be applied to the payment of the obligations in respect of which the amounts were deposited or, at the option of Beneficiary, to the payment of said obligations in such order or priority as Beneficiary shall determine. If at any time within 30 days prior to the due date of any of the aforementioned obligations the amounts then on deposit therefore shall be insufficient for the payment of such obligation in full, Trustor shall, within 10 days after demand, deposit the amount of the deficiency with Beneficiary. If the amounts deposited are in excess of the actual obligations for which they were deposited, Beneficiary may refund any such excess, or, at its option, may hold the same in a reserve account, not in trust and bearing interest, and reduce 221
24 proportionately the required monthly deposits for the ensuing year. Nothing herein contained shall be deemed to affect any right or remedy of Beneficiary under any other provision of this Deed of Trust or under any statute or rule of law to pay any such amount and to add the amount so paid to the indebtedness hereby secured.

All amounts so deposited shall be held by Beneficiary or its designee as additional security for the sums secured by this Deed of Trust, and upon the occurrence of a default hereunder Beneficiary may, in its sole and absolute discretion, and without regard to the adequacy of its security hereunder in the event of a monetary default or nonmonetary default if the Beneficiary elects to accelerate the Loan, apply such amounts or any portion thereof to any part of the indebtedness secured hereby. Any such application of said amounts or any portion thereof to any indebtedness secured hereby shall not be construed to cure or waive any default or notice of default hereunder or invalidate any act done pursuant to any such default or notice.

To the extent Beneficiary requires deposits to be made pursuant to this Section, Trustor shall deliver to Beneficiary all tax bills, bond and assessment statements, statements of insurance premiums, and statements for any other obligations referred to above as soon as the same are received by Trustor.

If Beneficiary sells or assigns this Deed of Trust, Beneficiary shall have the right to transfer all amounts deposited under this Section to the purchaser or assignee, and Beneficiary shall thereupon be released and have no further liability hereunder for the application of such deposits, and Trustor shall look solely to such purchaser or assignee for such application and for all responsibility relating to such deposits.

1.06 Security Agreement. This Deed of Trust constitutes a security agreement with respect to all personal property and fixtures in which the Beneficiary is granted a security interest hereunder, and the Beneficiary shall have all of the rights and remedies of a secured party under the California Uniform Commercial Code as well as all other rights and remedies available at law or in equity. Trustor hereby agrees to execute and deliver on demand and hereby irrevocably constitutes and appoints Beneficiary the attorney-in-fact of Trustor, to execute, deliver and, if appropriate, to file with the appropriate filing officer or office such security agreements, financing statements, continuation statements or other instruments as the Beneficiary may request or require in order to impose, perfect or continue the perfection of, the lien or security interest created hereby. Upon the occurrence of any default hereunder, the Beneficiary shall have the right to cause any of the Property which is personal property and subject to the security interest of the Beneficiary hereunder ("Personal Property") to be sold at any one or more public or private sales in any manner permitted by applicable law, and the Beneficiary shall further have all other rights and remedies, whether at law, in equity, or by statute, as are available to secured creditors under applicable law. Any such disposition may be conducted by an employee or agent of the Beneficiary or the Trustee. Any person, including both the Trustor and the Beneficiary, shall be eligible to purchase any part or all of such property at any such disposition.
222
25 Expenses of retaking, holding, preparing for sale, selling or the like shall be borne by Trustor and shall include the Beneficiary's and the Trustee's reasonable attorneys' fees and legal expenses. Trustor, upon demand of the Beneficiary, shall assemble the Personal Property and make it available to the Beneficiary at the property, a place which is hereby deemed to be reasonably convenient to the Beneficiary. The Beneficiary shall give Trustor at least 5 days' prior written notice of the time and place of any public sale or other disposition of such property or of the time of or after which any private sale or any other intended disposition is to be made, and if such notice is sent to Trustor, as the same is provided for the mailing of notices herein, it is hereby deemed that such notice shall be and is reasonable notice to Trustor.

Trustor hereby warrants, represents and covenants as follows:
(a) Trustor is, and as to portions of the Personal Property to be acquired after the date hereof will be, the sole owner of the Personal Property (except that Trustor may lease Personal Property which is immaterial in value and merely incidental to the operation of the Property), subject to any senior adverse lien, security interest, encumbrance or adverse claims thereon of any kind whatsoever as approved by Beneficiary. Trustor will notify Beneficiary of, and will defend the Personal Property against, all claims and demands of all persons at any time claiming the same or any interest therein.
(b) Trustor will not lease, sell, convey or in any manner transfer the Personal Property, without the prior written consent of Beneficiary, except for transfers as described in clause (d) below.
(c) The Personal Property is not used or bought for personal, family or household purposes of Trustor.
(d) The Personal Property will be kept on or at the Property and Trustor will not remove the Personal Property from the Property without the prior written consent of Beneficiary, except such portions or items of Personal Property which are consumed or worn out in ordinary usage, all of which shall be promptly replaced by Trustor with new items of equal or greater quality and value. (e) Trustor maintains a place of business in the State of California and Trustor will immediately notify Beneficiary in writing of any change in its place of business.
(f) Trustor will execute and deliver to the Beneficiary on demand, and at Trustor's cost and expense, any documents required to perfect and continue the perfection of the Beneficiary's security interest in the personal property of Trustor granted by this instrument.

1.07 Assignment of Rents. All of the existing and future rents, royalties, income and profits of the Property that arise from its use or occupancy are hereby absolutely and presently assigned to the Beneficiary. Trustor irrevocably appoints Beneficiary its true and lawful attorney-in-fact at the option of Beneficiary at any time 223
26 and from time to time to demand, receive and enforce payment, give receipts or releases and sue in the name of Trustor or Beneficiary for all such rents, royalties, incomes and profits. However, until Trustor is in default under this Deed of Trust, Trustor will have a license to demand, receive and enforce payment, give receipts or releases and sue in the name of Trustor for all such rents, royalties, income and profits. Upon any default by Trustor under any of the Loan Documents and the expiration of applicable cure periods the Beneficiary may terminate Trustor's license in its discretion at any time without notice to Trustor and may thereafter collect the rents, royalties, income and profits itself or by an agent or receiver. No action taken by the Beneficiary to collect any rents, royalties, income or profits will make the Beneficiary a "mortgagee-in-possession" of the Property, unless the Beneficiary personally or by agent enters into actual possession of the Property. Possession by a court-appointed receiver will not be considered possession by the Beneficiary. All rents, royalties, income and profits collected by the Beneficiary or a receiver will be applied first to pay all expenses of collection, and then to the payment of all costs of operation and management of the Property, and then to the payment of the indebtedness and obligations secured by this Deed of Trust in whatever order the Beneficiary directs in its absolute discretion and without regard to the adequacy of its security.

1.08 Acceleration. If the Property or any part thereof or beneficial interest therein or any interest of Trustor is sold, assigned, transferred, conveyed, encumbered or full possessory rights therein transferred, conveyed or encumbered, in either or any case without the prior written consent of Beneficiary other than leases to tenants, such event shall constitute a default under this Deed of Trust and Beneficiary, at its option, may declare the Note and all other obligations hereunder to be immediately due and payable, and Beneficiary may invoke any remedies following such acceleration as are permitted by this Deed of Trust or at law or in equity.

1.09 Maintenance.
(a) Trustor will not commit any waste on the Property or take any actions that might invalidate any insurance carried on the Property. Trustor will maintain the Property in good condition and repair and will complete or restore and repair promptly and in a good and workmanlike manner any building, structure, or improvement which may be constructed, damaged or destroyed thereon, whether or not insurance or other proceeds are available to cover in whole or in part the cost of any such completion, restoration or repair. No Improvements may be removed, demolished or materially altered except for purposes of replacement valued at less than TEN THOUSAND DOLLARS ($10,000.00) without the prior written consent of the Beneficiary. (b) Without the prior written consent of the Beneficiary, Trustor will not seek, make or consent to any change in the zoning or nature of occupancy or conditions of use of all or any part of the Property to the extent the same was not intended by the Beneficiary at the time this Deed of Trust was delivered. 224
27 (c) Trustor shall comply with all applicable laws, orders, ordinances, regulations, restrictions and requirements of all governmental authorities affecting the Property and the use thereof, including, without limitation, those relating to hazardous substances, pollution, or protection of the environment. Trustor will comply with and make all payments required under the provisions of any covenants, conditions or restrictions affecting the Property, including but not limited to those contained in any declaration and constituent documents of any condominium, cooperative or planned Project on the Property.

1.10 Records. Trustor will keep adequate books and records of account of the Property and its own financial affairs sufficient to permit the preparation of financial statements therefrom in accordance with generally accepted accounting principles. The Beneficiary will have the right to examine, copy and audit Trustor's records and books of account at all reasonable times.

1.11 Defense. Trustor will, at its own expense, appear in and defend any action or proceeding that might affect the Beneficiary's security or the rights or powers of the Beneficiary or the Trustee or that purports to affect any of the Property. If Trustor fails to perform any of its covenants or agreements contained in this Deed of Trust after the expiration of any applicable cure period, or if any action or proceeding of any kind (including but not limited to any bankruptcy, insolvency, arrangement, reorganization or other debtor relief proceeding) is commenced which might affect the Beneficiary's or the Trustee's interest in the Property or the Beneficiary's right to enforce its security, then the Beneficiary and/or the Trustee may, at their option, but without obligation to do so and without notice to or demand upon Trustor and without releasing Trustor from any obligation hereunder, make any appearances, disburse any sums and take any actions as may be deemed necessary or desirable to the Trustee or the Beneficiary to protect or enforce the security of this Deed of Trust or to remedy the failure of Trustor to perform its covenants (without, however, waiving any default of Trustor), including but not limited to disbursement of reasonable attorneys' fees, entry upon the Property to make repairs or to take other action to protect the security hereof, and payment, purchase, contest or compromise of any encumbrance, charge or lien which in the judgment of the Beneficiary or the Trustee appears to be prior or superior hereto. Trustor agrees to pay all reasonable out-of-pocket expenses of the Beneficiary and the Trustee thus incurred (including but not limited to fees and disbursements of counsel). Any sums so disbursed or advanced by the Beneficiary or the Trustee will be additional indebtedness of the Trustor secured by this Deed of Trust and will be payable by Trustor upon demand. Any such sums so disbursed or advanced will bear interest at 10% per annum, provided that any such sums so disbursed or advanced by the Trustee will not bear interest in excess of the maximum rate permitted to be charged by the Trustee under applicable law. This paragraph will not be construed to require the Beneficiary or the Trustee to incur any expenses, make any appearances, or take any actions.

1.12 Financing Statement. This Deed of Trust constitutes a financing statement filed as a fixture filing in the Official Records of the County Recorder of the County of Tulare with respect to any and all fixtures included within the term "Property" as used 225
28 herein and with respect to any goods or other personal property that may now be or hereafter become such fixtures.

1.13 Indemnity. In addition to any other indemnities to Beneficiary specifically provided for in this Deed of Trust, Trustor shall defend, with counsel reasonably satisfactory to Beneficiary, protect, indemnify and save harmless Beneficiary from and against any and all losses, liabilities, obligations, claims, damages, fines, penalties, causes of action, costs and expenses (including, without limitation, attorneys' fees and expenses), excepting those resulting from the gross negligence or willful misconduct of Beneficiary, imposed upon or incurred by or asserted against Beneficiary by reason of (a) Beneficiary's interest in the Property or receipt of any rents or other sum therefrom, including without limitation any income (excluding only federal, state, and local income tax, and California franchise tax), license, business or excess profits tax payable by Beneficiary and determined on the basis of the Rents or the revenues from the Note or this Deed of Trust, (b) any accident, injury to or death or a person or persons or loss of or damage to property occurring on or about or with respect to the Property or any part thereof or the adjoining sidewalks, curbs, vaults and vault space (if any), streets or ways, (c) any use, non-use, misuse, possession, occupation, alteration, operation, maintenance, management or condition (including, without limitation, the location of any hazardous substance thereon) of the Property or any part thereof, or of the adjoining sidewalks, curbs, streets, ways, vaults and vault space (if any), (d) any failure on the part of Trustor to perform or observe any of its agreements or obligations under this Deed of Trust or the Loan Documents, provided that the exclusive indemnification obligations of Trustor with respect to any Claims (as such term is defined in Section 1.14(e) below) are set forth in Section 1.14(e) hereof, (e) any failure on the part of Trustor to comply with any law, regulation, ordinance, or requirement of any governmental body applicable to the Property, (f) the performance of any labor or service or the furnishing of any material or other property in respect of the Property or any part thereof, and (g) any negligence (to the extent that proceeds from any insurance actually maintained by Beneficiary do not cover the loss caused thereby) or willful act or omission on the part of Trustor. All amounts payable to Beneficiary under this Section which are not paid within ten days after written demand therefore by Beneficiary shall bear interest from the date of such demand.

1.14 Environmental Matters.
(a) Trustor hereby represents and warrants to Beneficiary as follows. (i) To its best knowledge, the Property has not previously been used as a landfill. Neither Trustor, nor to the best knowledge of Trustor, any other person, has ever caused or permitted any Hazardous Materials (as hereinafter defined) to be released or disposed of, on, under or at the Property or any part thereof, and neither the Property, nor any part thereof, has ever been used (whether by Trustor or by any other person) for activities involving, directly or indirectly, the storage, release or disposal of any Hazardous Materials. Neither Trustor nor, to the best knowledge of Trustor, any other person, has ever caused or permitted to be incorporated 226
29 into any Improvements located on the Property any asbestos in any form, any urea formaldehyde foam insulation, or any transformers or other equipment which contain dielectric fluid containing levels of polychlorinated biphenyls in excess of 50 parts per million or any other Hazardous Materials. Trustor has received no notice from the California Department of Health Services that the Property is, or is proposed or threatened to become, classified as "border-zone property" under the provisions of California Health and Safety Code Section 25220, et seq. or any regulation adopted in accordance therewith. Trustor has received no notice from the California Department of Health Services, and no other person has reported to Trustor, that any occurrence or condition exists on real property adjoining or within 2,000 feet of the Property that could cause the Property to be subject to any restrictions on the ownership, occupancy, transferability or use of the Property under any federal, state or local law, code, statute, ordinance, rule, regulation, rule of common law or guideline relating to Hazardous Materials now or hereafter enacted or promulgated (collectively, and including, without limitation, any such laws which require notice of the use, presence, storage, generation, disposal or release of any Hazardous Materials to be provided to any party, "Hazardous Materials Laws"). No litigation, administrative enforcement actions or proceedings have been brought or threatened against Trustor or, to the best knowledge of Trustor, any other person, nor have any settlements been reached by or with any party or parties, public or private, alleging the presence, disposal, release or threatened release of any Hazardous Materials on, from or under any of the Property. (ii) As used herein, the term "Hazardous Materials" means and includes any flammable, explosive, or radioactive materials or hazardous, toxic or dangerous wastes, substances or related materials or any other chemicals, materials or substances (excluding herefrom any chemicals, materials or substances which are necessary to and typically required for the construction and operation of a multi-family housing project) , exposure to which is prohibited, limited or regulated by any federal, state, county, regional or local authority or which, even if not so regulated, may or could pose a hazard to the health and safety of the occupants of the Property or of property adjacent to the Property, including, but not limited to, asbestos, PCBs, petroleum products and by-products, substances defined or listed as "hazardous substances" or "toxic substances" or similarly identified in, pursuant to, or for purposes of, the California Solid Waste Management, Resource Recovery and Recycling Act (California Government Code Section 66700, et seq.), the Comprehensive Environmental Response, Compensation, and Liability Act, as amended (42 U.S.C. Section 9601, et seq.), the Hazardous Materials Transportation Act (49 U.S.C. Section 1801, et seq.), the Resource Conservation and Recovery Act (42 U.S.C. Section 6901, et seq.), Section 25117 or Section 25316 of the California Health & Safety Code; and any so-called "Superfund" or "Superlien" law, or any other federal, state or local statute, 227
30 law, ordinance, code, rule, regulation, order or decree regulating, relating to or imposing liability or standards of conduct concerning any hazardous, toxic or dangerous waste, substance or material; or any substances or mixture regulated under the Toxic Substance Control Act of 1976, as now or hereafter amended (15 U.S.C. Section 2601, et seq.); and any "toxic pollutant" under the Clean Water Act, as now or hereafter amended (33 U.S.C. Section 1251, et seq.); and any hazardous air pollutant under the Clean Air Act, as now or hereafter amended (42 U.S.C. Section 7901, et seq.).
(iii) Trustor has obtained, or will obtain, all certificates, permits, licenses, approvals and authorizations necessary for the lawful construction, occupancy, use and operation of the Property for the purposes for which it is currently being used, including, but not limited to, any certificates, permits, licenses, approvals and authorizations required by any federal, state, county, regional or local authority whose jurisdiction includes, in whole or in part, environmental protection or matters pertaining to health, safety and welfare. Issuance of the certificates, permits, licenses, approvals and authorizations obtained by Trustor for the Property is no longer subject to further administrative review or appeal under any applicable laws or ordinances, and the time periods set forth in currently applicable laws and ordinances, within which a third party could commence a lawsuit or other legal proceeding challenging the issuance of any of such certificates, permits, licenses, approvals or authorizations, have lapsed. Trustor has received no notice of any lawsuit or other regulatory, administrative, judicial or legal proceeding which is presently pending which (A) challenges the issuance of any of the certificates, permits, licenses, approvals or authorizations obtained by Trustor for the Property or (B) alleges non-compliance by Trustor or the Property with any law, regulation, rule or ordinance which has a material effect on the operation, occupancy, leasing or use of the Property for the purposes for which it is currently being used. In addition, none of the non-residential tenants (if any) of the Property, to the knowledge of Trustor after due inquiry, has failed to obtain any certificate, permit, license, approval or authorization required in connection with its operations on its premises. (b) Trustor shall keep and maintain the Property in compliance with any and all federal, state and local laws, ordinances and regulations relating to Hazardous Materials, industrial hygiene or to the environmental conditions on, under or about the Property, including, but not limited to, soil and ground water conditions. Trustor shall not use, generate, manufacture, release, store or dispose of, or permit to be used, generated, manufactured, released, stored or disposed of on, under, about or from the Property, or transport to or from or permit to be transported to or from the Property, any Hazardous Materials in violation of any Hazardous Materials Laws. Trustor hereby agrees at all times to comply fully and in a timely manner with, and to cause all of Trustor's employees, agents, contractors and subcontractors to comply with, all Hazardous Materials Laws. 228
31 Trustor shall have the right to contest, at Trustor's sole cost and expense, the applicability of any Hazardous Materials Laws or the grounds for any attempted enforcement of any Hazardous Materials Laws provided that: (i) as a condition to any such contest, Trustor shall deliver to Beneficiary, at Trustor's sole cost and expense, such test results, consultants' reports and other information regarding the then current environmental condition of the Property and the effect that any additional delay that may result from any such contest would have on such environmental condition, as Beneficiary may reasonably require; (ii) Trustor shall have no right to contest if the delay that might result from any such contest would result in any material deterioration in the environmental condition of the Property or any portion thereof or in any material deterioration in the environmental condition of any other property; (iii) Trustor shall have no such right to contest if, as a result of such contest, any governmental City would have the right to enforce a lien on all or any portion of the Property; and (iv) Trustor shall give prior written notice to Beneficiary of Trustor's intention to exercise such right of contest and, upon written request of Beneficiary, shall deliver to Beneficiary a good and sufficient bond or other security reasonably satisfactory to Beneficiary for the costs which would be incurred in complying with such Hazardous Materials Laws. Should a new chemical, material or substance become prohibited by federal, state or local regulation, or become known to pose a hazard, Trustor shall take measures to comply with the law or regulation, and/or take such steps as are necessary to minimize environmental threats. (c) Trustor shall immediately advise Beneficiary in writing of: (i) any and all enforcement, cleanup, removal or other governmental or regulatory actions relating to the Property instituted, completed or threatened pursuant to any environmental laws, statutes, ordinances, rules and regulations, including any Hazardous Materials Laws, and of any notices received by Trustor with respect to the foregoing; (ii) Trustor's discovery of any claim made or clearly threatened in writing by any third party (other than by a governmental City) and of any claim made or clearly threatened (whether or not in writing) by any governmental City against Trustor or the Property relating to damage, contribution, cost recovery compensation, loss or injury resulting from any Hazardous Materials (the matters set forth in clauses (i) and (ii) above are hereinafter referred to as "Hazardous Materials Claims"); and (iii) Trustor's discovery of any occurrence or condition on any real property adjoining or in the vicinity of the Property that could cause the Property or any part thereof to be classified as "border-zone property" under the provisions of California Health and Safety Code Sections 25220, et seq., or any regulation adopted in accordance therewith, or to be otherwise subject to any restrictions on the ownership, occupancy, transferability or use of the Property under any Hazardous Materials Laws. Beneficiary shall have the right to join and participate in, as a party if it so elects, any legal proceedings or actions initiated in connection with any Hazardous Materials Claims and to have its reasonable attorneys' fees in connection therewith paid by Trustor. Trustor shall also immediately deliver to Beneficiary a copy of any notice of any violation of environmental laws, including Hazardous Materials Laws, hereafter received by Trustor.
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32 (d) Without Beneficiary's prior written consent, which shall not be unreasonably withheld or delayed, Trustor shall not take any remedial action in response to the presence of any Hazardous Materials on, under or about the Property, nor enter into any settlement agreement, consent decree or other compromise in respect to any Hazardous Materials Claims, which remedial action, settlement, consent or compromise might, in Beneficiary's reasonable judgment, impair the value of Beneficiary's security hereunder; provided, however, that Beneficiary's prior consent shall not be necessary in the event that the presence of any Hazardous Materials on, under or about the Property either poses an immediate threat to the health, safety or welfare of any individual or is of such a nature that an immediate remedial response is necessary and it is not possible to obtain Beneficiary's consent before taking such action, provided that in such event Trustor shall notify Beneficiary as soon as practicable of any action so taken. Beneficiary agrees not to withhold its consent, where such consent is required hereunder, if either (i) a particular remedial action is ordered by a court of competent jurisdiction; (ii) Trustor establishes to the reasonable satisfaction of Beneficiary that there is no reasonable alternative to such remedial action which would result in less impairment of Beneficiary's security hereunder; (iii) all federal, state and local governmental agencies having jurisdiction have approved of or required the particular remedial action; or (iv) a particular remedial action is recommended by a reputable environmental consultant selected or approved by Beneficiary in a report which is satisfactory to Beneficiary in its reasonable discretion.
(e) Trustor hereby agrees to defend (with counsel approved by Beneficiary), indemnify and hold Beneficiary harmless from and against, and shall reimburse Beneficiary for any and all Claims (as defined below). Trustor hereby expressly waives, with respect to any Claims, any immunity to which Trustor may otherwise be entitled under any industrial or workers' compensation laws. As used herein, "Claims" means any and all actual out-of-pocket cost (including, without limitation, attorneys' fees, expenses and court costs), expense or loss arising from any claim, liability, damage, injunctive relief, injury to person, property or natural resources, fine, penalty, action and cause of action incurred by or asserted against Beneficiary and arising, directly or indirectly, in whole or in part, out of the release, discharge, deposit or presence, or alleged or suspected release, discharge, deposit or presence, of any Hazardous Materials at, on, about, under, within or from the Property, or in or adjacent to any part of the Property, or in the soil, ground water or soil vapor on or under the Property or elsewhere in connection with the transportation of Hazardous Materials to or from the Property in violation of any Hazardous Materials Laws, whether or not known to Trustor or Beneficiary, whether foreseeable or unforeseeable, regardless of the source of such release, discharge, deposit or presence and regardless of when such release, discharge, deposit or presence occurred or is discovered, provided however that this indemnity shall not extend to affirmative acts by Beneficiary which Trustor establishes are responsible for such release, discharge, deposit or presence, or alleged or suspected release, discharge, deposit or presence of any Hazardous Materials, or for increasing the damage resulting from actual, alleged, 230
33 or suspected release, discharge, deposit or presence of any Hazardous Materials.

Without limiting the generality of the foregoing and for purposes of clarification only, Claims also include all actual out-of-pocket costs incurred by Beneficiary in connection with (i) determining whether the Property is in compliance or the amount of money required to remediate any environmental contamination, and causing the Property to be or become in compliance, with all applicable Hazardous Materials Laws, (ii) any removal or remediation of any kind and disposal of any Hazardous Materials present at, on, under or within the Property or released from the Property to the extent required by applicable Hazardous Materials Laws in effect at the time of such removal, remediation or disposal, and (iii) any repair of any damage to the Property or any other property caused by any such removal, remediation or disposal.

The rights of Beneficiary hereunder shall not be limited by any investigation or the scope of any investigation undertaken by or on behalf of Beneficiary in connection with the Property prior to the date hereof.

1.15 Access Law.
(a) Trustor agrees that Trustor and the Property shall at all times strictly comply to the extent applicable with the requirements of the Americans with Disabilities Act of 1990, the Fair Housing Amendments Act of 1988, all federal, state and local laws and ordinances related to disabled access, and all statutes, rules, regulations, and orders of governmental bodies and regulatory agencies or orders or decrees of any court adopted or enacted with respect thereto including the Americans with Disabilities Act Accessibility Guidelines for Buildings and Facilities, as now existing or hereafter amended or adopted (collectively, "Access Laws").
(b) Notwithstanding any limits set forth herein or in any other document on Trustor's obligation to obtain Beneficiary's approval of alterations of the Property, Trustor shall not alter or permit any tenant or other person to alter the Property in any manner which would increase Trustor's responsibilities for compliance with the Access Laws without the prior written approval of Beneficiary.
(c) Trustor agrees to give prompt notice to Beneficiary of any claims of violations of any Access Laws and of the commencement of any proceedings or investigations which relate to compliance with any of the Access Laws. (d) Trustor shall indemnify, defend, and hold harmless Beneficiary from and against any and all claims, demands, damages, costs, expenses, losses, liabilities, penalties, fines and other proceedings, including reasonable attorney fees and expenses arising directly or indirectly from or out of or in any way connected with any failure of the Property to comply with any of the Access Laws. The obligations and liabilities of Trustor under this section shall survive 231
34 any termination, satisfaction, assignment, judicial or nonjudicial foreclosure proceeding, or delivery of a deed of lieu of foreclosures.

ARTICLE II

EVENTS OF DEFAULT

2.01 Default. The Trustor will be in default under this Deed of Trust if:
(a) There shall be a failure by the Trustor to make the payment of any installment of principal or interest or any other sum secured hereby which continues for 15 days after such payment is due; or
(b) There shall be a failure to comply with any other term, obligation, covenant or condition contained in this Deed of Trust; provided, however, that Trustor shall not be in default if Trustor, after Beneficiary sends written notice demanding cure of such failure, (i) cures the failure within 30 days, or (ii) if the cure requires more than 30 days, immediately commences to cure the failure and thereafter diligently prosecutes such cure to completion within 90 days after giving notice of the default.
(c) There occurs an appointment, pursuant to an order of a court of competent jurisdiction, of a trustee, receiver or liquidator of the Property or any part thereof, or of the Trustor, or any termination or voluntary suspension of the transaction of business of the Trustor, or any attachment, execution or other judicial seizure of all or any substantial portion of the Borrower's assets, which appointment, attachment, execution or seizure is not discharged within 45 days; or (d) The Trustor, or any general partner or joint venturer of the Trustor at any level or any trustee of Trustor, shall file a voluntary case under any applicable bankruptcy, insolvency, debtor relief, or other similar law now or hereafter in effect, or shall consent to the appointment of or taking possession by a receiver, liquidator, assignee, trustee, custodian, sequestrator (or similar official) of the Trustor or such person or entity or for any part of the Property or any substantial part of the Trustor or such person's or entity's property, or shall make any general assignment for the benefit of the Trustor’s or such person's or entity's creditors, or shall fail generally to pay the Trustor’s or such person's or entity's debts as they become due or shall take any action in furtherance of any of the foregoing, provided, however, that any such default with respect to any general partner of the Trustor at any level shall be deemed cured if the limited partners of the Trustor replace such general partner in accordance with the partnership agreement of the Trustor within 45 days with another general partner acceptable to Beneficiary and approved by the bankruptcy court if such approval is necessary, provided however that if the limited partners' diligent efforts (with due regard to any injunction or other order resulting from a pending bankruptcy or other legal proceeding, if applicable) have not succeeded in the replacement of the general partner within 45 days and (i) they continue to diligently pursue (with due 232
35 regard to any injunction or other order resulting from a pending bankruptcy or other legal proceeding, if applicable) the appointment of an acceptable substitute general partner, and (ii) no other default has occurred and is continuing, then this time limitation shall be extended as necessary; or
(e) A court having jurisdiction shall enter a decree or order for relief in respect of Trustor, or any general partner or joint venturer of the Borrower at any level or any trustee of the Borrower, in any involuntary case brought under any bankruptcy, insolvency, debtor relief, or other similar law now or hereafter in effect, or the Borrower or such general partner, joint venturer or trustee shall consent to or shall fail to oppose any such proceeding, or any such court shall enter a decree or order appointing a receiver, liquidator, assignee, custodian, trustee, sequestrator (or similar official) of the Borrower or such person or entity or for any part of the Property or any substantial part of the Borrower's or such person's or entity's property, or ordering the winding up or liquidation of the affairs of the Borrower or any such person or entity, and such decree or order shall not be dismissed within 60 days after the entry thereof, provided, however, that any such default with respect to any general partner of the Borrower at any level shall be deemed cured if the limited partners of the Trustor replace such general partner in accordance with the Partnership agreement of the Trustor within 45 days with another general partner acceptable to Beneficiary and approved by any court whose approval is necessary, provided however that if the limited partners' diligent efforts (with due regard to any injunction or other order resulting from a pending bankruptcy or other legal proceeding, if applicable) have not succeeded in the replacement of the general partner within 45 days and (i) they continue to diligently pursue (with due regard to any injunction or other order resulting from a pending bankruptcy or other legal proceeding, if applicable) the appointment of an acceptable substitute general partner, and (ii) no other default has occurred and is continuing, then this time limitation shall be extended as necessary; or
(f) A material breach or default of any term, covenant, condition, provision, representation or warranty occurs under any agreement which guarantees any part of the indebtedness or obligations secured by this Deed of Trust or any of the events enumerated in subparagraph (c), (d) or (e) above occurs with regard to any guarantor of any indebtedness or obligations secured by this Deed of Trust, or there occurs the revocation, limitation or termination of the obligations of any such guarantor except in accordance with the express written terms of the instrument of guaranty; or
(g) There has occurred a default under any term, covenant, agreement, condition, provision, representation or warranty contained in any of the Related Documents or any other mortgage or deed of trust encumbering all or any portion of the Property, regardless of whether such mortgage or deed of trust is prior or subordinate to this Deed of Trust, or contained in any note or other instrument secured thereby, or contained in any other instrument securing such note, if such default remains uncured following any applicable notice, grace or cure period; or 233
36 (h) There has occurred a violation of any condition, covenant or restriction recorded against or affecting the Property, and such violation has not been cured within any applicable cure period provided therein; or (i) Any representation or disclosure made to the Beneficiary by the Trustor or by any guarantor of any indebtedness or obligations secured by this Deed of Trust proves to be materially false or misleading on the date as of which made, whether or not that representation or disclosure appears in this Deed of Trust; or
(j) A change of the constituent general partner of the Trustor, whether voluntarily or involuntarily or otherwise, or the sale, conveyance, transfer, disposition, charging or encumbrance of any such general partner interests, without the prior written consent of the Beneficiary, provided however that any such default with respect to any general partner of the Trustor at any level shall be deemed cured if the limited partners of the Trustor replace such general partner in accordance with the partnership agreement of the Trustor within 45 days with another general partner acceptable to Beneficiary and approved by any court whose approval is required, provided, however, that if the limited partner's diligent efforts (with due regard to any injunction or other order issued in a pending legal proceeding, if applicable) have not succeeded in the replacement of the general partner within 45 days and (i) they continue to diligently pursue (with due regard to any injunction or other order issued in a pending legal proceeding, if applicable) the appointment of an acceptable general partner, and (ii) no other default has occurred and is continuing, then this time limitation shall be extended as necessary. Notwithstanding the foregoing, Beneficiary hereby approves the following transfers of interest in the Trustor: The admission of an investor as a limited partner in Trustor.

ARTICLE III

REMEDIES

3.01 Remedies. If the Trustor is in default under the Deed of Trust, the Beneficiary may, at its option, and without notice to or demand upon the Trustor:
(a) Declare any or all indebtedness secured by this Deed of Trust to be due and payable immediately;
(b) Upon five days' notice to Trustor, enter onto the Property, in person or by agent or by court-appointed receiver, and take any and all steps which may be desirable in the Beneficiary's sole discretion to complete any unfinished construction, to manage and operate the Property and to do any and all other acts which the Beneficiary deems proper to protect the security hereof and, either with or without taking possession, in its own name or in the name of the Trustor, sue for or otherwise collect and receive the rents, royalties, income and profits of the Property, and the Beneficiary may apply any rents, royalties, income 234
37 or profits collected against the indebtedness secured by this Deed of Trust without in any way curing or waiving any default of the Trustor; (c) Bring a court action to foreclose this Deed of Trust or to enforce its provisions or any of the indebtedness or obligations secured by this Deed of Trust;
(d) Cause any or all of the Property to be sold under the power of sale granted by this Deed of Trust in any manner permitted by applicable law; and (e) Exercise any other right or remedy available under the Loan Documents or any other agreement of the Trustor, or under any guaranty of any obligations of the Trustor to the Beneficiary relating to the Loan, or otherwise available at law or in equity.

3.02 Power of Sale. In connection with the exercise of the power of sale granted by this Deed of Trust:
(a) Beneficiary may elect to cause the Property or any part thereof to be sold under the power of sale herein granted in any manner permitted by applicable law. In connection with any sale or sales hereunder, Beneficiary may elect to treat any of the Property which consists of a right in action or which is property that can be severed from the real property covered hereby or any improvements thereon without causing structural damage thereto as if the same were personal property, and dispose of the same in accordance with applicable law, separate and apart from the sale of real property. Any sale of any personal property hereunder shall be conducted in any manner permitted by Section 9501 or any other applicable section of the California Commercial Code. Where the Property consists of real and personal property or fixtures, whether or not such personal property is located on or within the real property, Beneficiary may elect in its discretion to exercise its rights and remedies against any or all of the real property, personal property, and fixtures in such order and manner as is now or hereafter permitted by applicable law.
(b) Without limiting the generality of the foregoing, Beneficiary may, in its sole and absolute discretion and without regard to the adequacy of its security, elect to proceed against any or all of the real property, personal property and fixtures in any manner permitted under Section 9501(4)(a) of the California Commercial Code; and if the Beneficiary elects to proceed in the manner permitted under Section 9501(4)(a)(ii) of the California Commercial Code, the power of sale herein granted shall be exercisable with respect to all or any of the real property, personal property and fixtures covered hereby, as designated by Beneficiary, and the Trustee is hereby authorized and empowered to conduct any such sale of any real property, personal property and fixtures in accordance with the procedures applicable to real property.
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38 (c) Where the Property consists of real property and personal property, any reinstatement of the obligation secured hereby, following default and an election by the Beneficiary to accelerate the maturity of said obligation, which is made by Trustor or any other person or entity permitted to exercise the right of reinstatement under Section 2924c of the California Civil Code or any successor statute, shall, in accordance with the terms of California Commercial Code Section 9501(4)(c)(iii), not prohibit the Beneficiary from conducting a sale or other disposition of any personal property or fixtures or from otherwise proceeding against or continuing to proceed against any personal property or fixtures in any manner permitted by the California Commercial Code; nor shall any such reinstatement invalidate, rescind or otherwise affect any sale, disposition or other proceeding held, conducted or instituted with respect to any personal property or fixtures prior to such reinstatement or pending at the time of such reinstatement. Any sums paid to Beneficiary in effecting any reinstatement pursuant to Section 2924c of the California Civil Code shall be applied to the secured obligation and to the Beneficiary's and Trustee's reasonable costs and expenses in the manner required by Section 2924c.
(d) Should Beneficiary elect to sell any portion of the Property which is real property or which is personal property or fixtures that Beneficiary has elected under Section 9501(4)(a)(ii) of the California Commercial Code to sell together with real property in accordance with the laws governing a sale of real property, Beneficiary or Trustee shall give such notice of default and election to sell as may then be required by law. Thereafter, upon the expiration of such time and the giving of such notice of sale as may then be required by law, and without the necessity of any demand on Trustor, Trustee, at the time and place specified in the notice of sale, shall sell said real property or part thereof at public auction to the highest bidder for cash in lawful money of the United States. Trustee may, and upon request of Beneficiary shall, from time to time, postpone any sale hereunder by public announcement thereof at the time and place noticed therefor. (e) If the Property consists of several lots, parcels or items of property, Beneficiary may: (i) designate the order in which such lots, parcels or items shall be offered for sale or sold, or (ii) elect to sell such lots, parcels or items through a single sale, or through two or more successive sales, or in any other manner Beneficiary deems in its best interest. Any person, including Trustor, Trustee or Beneficiary, may purchase at any sale hereunder, and Beneficiary shall have the right to purchase at any sale hereunder by crediting upon the bid price the amount of all or any part of the indebtedness hereby secured. Should Beneficiary desire that more than one sale or other disposition of the Property be conducted, Beneficiary may, at its option, cause the same to be conducted simultaneously, or successively, on the same day, or at such different days or times and in such order as Beneficiary may deem to be in its best interests, and no such sale shall terminate or otherwise affect the lien of this Deed of Trust on any part of the Property not sold until all indebtedness secured hereby has been fully paid. In the event Beneficiary elects to dispose of the Property through more than one sale, Trustor agrees to pay the costs and expenses of each such sale and of any judicial 236
39 proceedings wherein the same may be made, including reasonable compensation to Trustee and Beneficiary, their agents and counsel, and to pay all expenses, liabilities and advances made or incurred by Trustee in connection with such sale or sales, together with interest on all such advances made by Trustee at the lower of the interest rate set forth in the Note or the maximum rate permitted by law to be charged by Trustee.
(f) Upon any sale hereunder, Trustee shall execute and deliver to the purchaser or purchasers a deed or deeds conveying the property so sold, but without any covenant or warranty whatsoever, express or implied, whereupon such purchaser or purchasers shall be let into immediate possession; and the recitals in any such deed or deeds of facts, such as default, the giving of notice of default and notice of sale, and other facts affecting the regularity or validity of such sale or disposition, shall be conclusive proof of the truth of such facts and any such deed or deeds shall be conclusive against all persons as to such facts recited therein.

3.03 Sale Proceeds. The proceeds of any sale under this Deed of Trust will be applied in the following manner:

FIRST: Payment of the costs and expenses of the sale, including but not limited to the Trustee's fees, legal fees and disbursements, title charges and transfer taxes, and payment of all expenses, liabilities and advances of the Trustee, together with interest on all advances made by the Trustee at the lower of 10% per annum or the maximum rate permitted to be charged by the Trustee under applicable law.

SECOND: Payment of all sums expended by the Beneficiary under the terms of this Deed of Trust and not yet repaid, together with interest on such sums at the interest rate set forth in the Note.

THIRD: Payment of the indebtedness and obligations of the Trustor secured by this Deed of Trust in any order that the Beneficiary chooses.

FOURTH: The remainder, if any, to the person or persons legally entitled to it.

3.04 Waiver. Trustor, for itself and for all persons hereunder claiming through or under it or who may at any time acquire a lien on all or any part of the Property or any interest therein, hereby expressly waives and releases all rights to direct the order in which any of the Property and/or any other property now or hereafter constituting security for any of the indebtedness secured hereby will be sold in the event of any sale under this Deed of Trust, and also any right to have any of the Property and/or any other property now or hereafter constituting security for any of the indebtedness secured hereby marshaled upon any foreclosure of this Deed of Trust or of any other security for any of said indebtedness.
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40 3.05 Remedies Cumulative. All remedies contained in this Deed of Trust are cumulative, and the Beneficiary also has all other remedies provided by law or in any other agreement between Trustor and the Beneficiary. No delay or failure by the Beneficiary to exercise any right or remedy under this Deed of Trust will be construed to be a waiver of that right or remedy or of any default by Trustor. The Beneficiary may exercise any one or more of its rights and remedies at its option without regard to the adequacy of its security.

3.06 Costs and Fees. Trustor will pay all of the Beneficiary's and the Trustee's costs, fees and expenses incurred in any efforts to enforce any terms of this Deed of Trust or in the performance of its or their duties hereunder, whether or not any lawsuit is filed, including but not limited to legal fees and disbursements, foreclosure costs and title insurance or trustee's sale guaranty charges and any other governmental charges or impositions imposed by any governmental authority on the Trustee or the Beneficiary by reason of its or their interest in the Note, any note evidencing a future advance, or this Deed of Trust.

3.07 Application of Rents to Protecting and Preserving the Property. If, as a result of an event of default, Beneficiary elects to enforce its rights under Section 2938(c) of the California Civil Code by any means other than the appointment of a receiver and Beneficiary receives rent payments from the Property pursuant to such enforcement, and Trustor thereafter makes written demand upon Beneficiary to pay the reasonable costs of protecting and preserving the Property pursuant to Section 2938(g) of the California Civil Code (a "2938(g) Demand"), then Trustor agrees that the obligation of Beneficiary to pay the "reasonable costs of protecting and preserving the Property" pursuant to Section 2938(g) shall be deemed fully satisfied upon payment by Beneficiary of only the following costs and only from and to the extent of rent payments actually received by Beneficiary: (i) delinquent real property taxes with respect to the Property only to the extent that such amounts subject the Property to an imminent tax sale which has been set for sale by the applicable taxing authority pursuant to applicable law; (ii) property damage insurance, and liability insurance in such amounts, with such insurers and pursuant to such terms as Beneficiary shall have previously approved for Trustor prior to the default or event of default; provided, however, that Beneficiary shall not be required to purchase any rental interruption insurance or earthquake insurance and provided further that, Beneficiary may satisfy all or any portion of such obligation by insuring the Property through Beneficiary's blanket insurance policy or policies; and (iii) the reasonable cost of compliance with building codes only to the extent the applicable governmental building authority makes a written demand to Beneficiary to comply therewith. Notwithstanding anything to the contrary contained herein, Beneficiary may (pursuant to such 2938(g) Demand or otherwise), but shall not be obligated to, pay out of such rent payments actually received any other reasonable costs which Beneficiary believes, in its sole discretion, is necessary for the protection and preservation of the Property (it being the intent of Trustor and Beneficiary that nothing contained herein shall be deemed to impair, define or limit Beneficiary's rights or remedies pursuant to this Deed of Trust, including, but not limited to, the right of Beneficiary as beneficiary under this Deed of Trust and/or the other Loan Documents to protect and preserve the security for this Deed of Trust in the event of default).
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41 ARTICLE IV

MISCELLANEOUS

4.01 Invalidity. The invalidity or unenforceability of any one or more provisions of this Deed of Trust will in no way affect any other provision.

4.02 Loan Statement. Trustor agrees to pay to the Beneficiary a reasonable charge, not to exceed the maximum allowed by law, for giving any statement of the status of the obligations secured by this Deed of Trust.

4.03 Late Charge. If Trustor shall fail to make any payment due hereunder within 15 days after the date the same is due and payable, a late charge by way of damages shall be immediately due and payable in the amount of six percent of the overdue amount. Trustor recognizes that default in making the payments herein agreed to be paid when due will result in the Beneficiary incurring additional expense in servicing the Loan, in loss to the Beneficiary of the use of the money due, and in frustration to the Beneficiary in meeting its loan commitments. Trustor agrees that, if for any reason it fails to pay the amounts due under this Deed of Trust within 15 days after the date when due, the Beneficiary shall be entitled to damages for the detriment caused thereby, but that it is extremely difficult and impractical to ascertain the extent of such damages.

Trustor agrees that such amount as is specified herein is a reasonable approximation of damages for late payment.

4.04 Notices. All notices given under this Deed of Trust must be in writing and will be effectively served upon personal delivery or, if mailed, no later than 5 days after deposit in certified United States mail, postage prepaid, return receipt requested or overnight delivery service, sent to the Beneficiary at its address appearing in the recording information block on the front page of this Deed of Trust and sent to the Trustor at its address appearing below its signature, which addresses may be changed by written notice. However, the service of any notice of default or notice of sale under this Deed of Trust as required by law will, if mailed, be effective on the date of mailing.

4.05 Beneficiary Consent. Without affecting Trustor's liability for the payment of any of the indebtedness secured by this Deed of Trust, the Beneficiary may from time to time and without notice to the Trustor (a) release any person liable for the payment of that indebtedness, (b) extend or modify the terms of payment of that indebtedness, (c) accept additional real or personal property of any kind as security, or alter, substitute or release any property securing that indebtedness, or (d) cause the Trustee to consent to the making of any map or plat of the Property, or to reconvey any part of the Property, or to join in granting any easement or creating any restriction on the Property, or to join in any subordination or other agreement affecting this Deed of Trust.

4.06 Trustee Acceptance. Trustee accepts this Trust when this Deed of Trust, duly executed and acknowledged, is made a public record as provided by law.

4.07 Statute of Limitations. The Trustor waives all present and future statutes of limitations as a defense to any action to enforce the provisions of this Deed of Trust or 239
42 to collect any indebtedness secured by this Deed of Trust to the fullest extent permitted by law, provided that such waiver shall not apply at any time after payment in full of all sums secured by the Deed of Trust.

4.08 Interpretation. The term "Trustor" includes both the original Trustor and any subsequent owner or owners of any of the Property, and the term "Beneficiary" includes the original Beneficiary and also any future owner or holder, including pledgees and participants, of the Note or any interest therein. Whenever the context requires, the singular includes the plural and vice versa and each gender includes each other gender.

The headings of the articles of this Deed of Trust are for convenience only and do not limit its provisions.

4.09 Consent. The Beneficiary's consent to any act or omission by Trustor will not be a consent to any other or subsequent act or omission or a waiver of the need for such consent in any future or other instance.

4.10 Successors. The terms of this Deed of Trust will bind and benefit the heirs, legal representatives, successors and assigns of Trustor and Beneficiary and the successors in trust of the Trustee. If more than one person is named as Trustor, each will be jointly and severally liable to perform the obligations of the Trustor.

4.11 California Law. This Deed of Trust will be governed by California law.

4.12 Removal of Trustee. The Beneficiary may remove the Trustee or any successor Trustee at any time or times and appoint a successor Trustee by recording a written substitution in the county where the real property covered by this Deed of Trust is located, or in any other manner permitted by law. Upon that appointment, all of the powers, rights and authority of the Trustee will immediately become vested in its successor.

4.13 Requests for Notice of Default and Notice of Sale. The undersigned Trustor requests that a copy of any notice of default and any notice of sale hereunder be mailed to Trustor at Trustor's address hereinbefore set forth.

IN WITNESS WHEREOF, the undersigned has executed this Deed of Trust the day and year first hereinabove written.

TRUSTOR:
, 2025 Self Help Enterprises, a California nonprofit corporation By:

Its:
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43 STATE OF CALIFORNIA )
) ss

COUNTY OF )
On ________________, before me the undersigned, a notary public, personally appeared _______________________ and _______________________,
( ) personally known to me, or
( ) proved to me on the basis of satisfactory evidence
to be the persons whose names are subscribed to the within instrument and acknowledged to me that they executed the same in their authorized capacities, and that by their signatures on the instrument the persons, or the entity upon behalf of which the persons acted, executed the instrument.

WITNESS my hand and official seal.

Signature
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44 “EXHIBIT A”

DESCRIPTION OF REAL PROPERTY
242
Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 25-0265 Agenda Date: 7/21/2025 Agenda #: 9.

Agenda Item Wording:

Fire Department Reimbursement Resolution - Adopt Resolution 2025-48 to replace Governing Body Resolution 2015-09 and add the Deputy Fire Chief classification for portal-to-portal reimbursement eligibility under the California Fire Assistance Agreement.

Prepared by: Dan Griswold, Fire Chief, [email protected] 713-4220; Tom Van Grouw, Deputy Fire Chief, [email protected] 713-4265; Crissy Balderama, Sr. Administrative Analyst, [email protected] 713-4513 Department Recommendation: Staff recommends Council adopt Resolution 2025-48, replacing Governing Body Resolution 2015-09 to include the Deputy Fire Chief classification among the ranks eligible for portal-to-portal reimbursement under the California Fire Assistance Agreement (CFAA) for assignments outside of City jurisdiction.

Summary:

As part of the FY 2024/25 budget, the City Council approved the addition of a Deputy Fire Chief position to the Visalia Fire Department. To remain compliant with the CFAA and ensure consistent reimbursement practices, the Fire Department must update the governing body resolution submitted to Cal OES to include the Deputy Chief position.

The CFAA requires that all personnel seeking portal-to-portal reimbursement for emergency response must be listed in a governing body resolution or equivalent document. Portal-to-portal reimbursement means the city will be reimbursed for personnel time from the time of dispatch to the time the personnel return to Visalia. Without this update, the City risks limiting reimbursement for Deputy Fire Chief deployments to actual hours worked only, contrary to existing practice for other fire personnel.

Background Discussion:

On April 6, 2015, the Visalia City Council adopted Resolution 2015-09, authorizing portal-to-portal reimbursement for specified Visalia Fire Department personnel deployed to out-of-county emergency incidents under the California Fire Assistance Agreement (CFAA). This reimbursement model compensates and reimburses for eligible employees from the time of dispatch to their return to home base.

Resolution 2015-09 included the following classifications:
· Fire Chief
· Fire Battalion Chief
· Fire Captain
· Fire Captain Paramedic
Visalia City Council Page 1 of 3 Printed on 7/18/2025
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File #: 25-0265 Agenda Date: 7/21/2025 Agenda #: 9.
· Fire Engineer
· Fire Engineer Paramedic
· Firefighter Paramedic
· Firefighter EMT
At that time, the classification of Deputy Fire Chief did not exist within the department and was therefore not included in the resolution.

Resolution 2025-48 will include the following classifications:
· Fire Chief
· Deputy Fire Chief
· Fire Battalion Chief
· Fire Captain
· Fire Captain Paramedic
· Fire Engineer
· Fire Engineer Paramedic
· Firefighter Paramedic
· Firefighter EMT
Fiscal Impact: There is no fiscal impact to the City of Visalia, as this action formalizes existing reimbursement practices for eligible classifications under CFAA and ensures continuation of full portal -to-portal compensation.

Prior Council Action: On April 6, 2015, the City Council adopted Resolution 2015-09, authorizing portal-to-portal reimbursement for Visalia Fire Department personnel deployed to out-of-county emergency incidents under the California Fire Assistance Agreement (CFAA). The resolution identified eligible classifications for reimbursement but did not include the Deputy Fire Chief position, which did not exist at that time.

Other: None.

Alternatives: If the City Council does not adopt an updated GBR, the Deputy Fire Chief will not be eligible for portal-to-portal reimbursement under the California Fire Assistance Agreement (CFAA).

Instead, the City would only be reimbursed for the actual hours worked by the Deputy Fire Chief during out-of-county assignments, which is inconsistent with the reimbursement practices currently in place for other personnel.

Recommended Motion (and Alternative Motions if expected):

I move to Adopt Resolution 2025-48, replacing Resolution 2015-09 and adding the classification of Deputy Fire Chief among the ranks eligible for portal-to-portal reimbursement under the CFAA for out -of-county emergency response assignments.

Environmental Assessment Status: N/A
CEQA Review: N/A
Visalia City Council Page 2 of 3 Printed on 7/18/2025
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File #: 25-0265 Agenda Date: 7/21/2025 Agenda #: 9.

Deadline for Action: 7/21/2025
Attachments:

1. Resolution 2025-48

2. Resolution 2015-09 (Approved April 6, 2015)

3. Staff Report dated April 6, 2015

4. CFAA Agreement 5/1/2020 thru 12/31/2024

5. CFAA Extension (2025)
Visalia City Council Page 3 of 3 Printed on 7/18/2025
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RESOLUTION 2025-48

A RESOLUTION OF THE CITY OF VISALIA AUTHORIZING THE TERMS AND

CONDITIONS FOR FIRE DEPARTMENT RESPONSE AWAY FROM THEIR OFFICIAL DUTY STATION AND ASSIGNED TO AN EMERGENCY INCIDENT.

WHEREAS, the City of Visalia Fire Department is a public agency located in the County of Tulare, State of California, and
WHEREAS, it is the City of Visalia’s desire to provide fair and legal payment to all its employees for time worked; and
WHEREAS, the City of Visalia has in its employ, Fire department response personnel that include: Fire Chief, Deputy Fire Chief, Fire Battalion Chief, Fire Captain, Fire Captain Paramedic, Fire Engineer, Fire Engineer Paramedic, Firefighter Paramedic, and Firefighter EMT; and
WHEREAS, the City of Visalia will compensate its employees portal to portal while in the course of their employment and away from their official duty station and assigned to an emergency incident, in support of an emergency incident, or prepositioned for emergency response; and WHEREAS, the City of Visalia will compensate its employees overtime in accordance withh their current Memorandum of Understanding while in the course of their employment and away from their official duty station and assigned to an emergency incident, in support of an emergency incident, or pre-positioned for emergency response.

THEREFORE, IT IS HEREBY RESOLVED BY THE CITY COUNCIL OF THE CITY OF VISALIA, that:

1. Personnel shall be compensated according to Memorandum of Understanding (MOU), Personnel Rules and Regulations, and/or other directive that identifies personnel compensation in the workplace.

2. In the event a personnel classification does not have an assigned compensation rate, a “Base Rate” as set forth in an organizational policy, administrative directive or similar document will be used to compensate such personnel.

3. The City of Visalia Fire Department will maintain a current salary survey or acknowledgement of acceptance of the “base rate” on file with the California Governor’s Office of Emergency Services, Fire Rescue Division.

4. Personnel will be compensated (portal to portal) beginning at the time of dispatch to the return to jurisdiction when equipment and personnel are in service and 246
available for agency response.

5. Fire department response personnel include: Fire Chief, Deputy Fire Chief, Fire Battalion Chief, Fire Captain, Fire Captain Paramedic, Fire Engineer, Fire Engineer Paramedic, Firefighter Paramedic and Firefighter EMT.

NOW, THEREFORE, BE IT RESOLVED,
PASSED AND ADOPTED: July 21, 2025 LESLIE B. CAVIGLIA, CITY CLERK

STATE OF CALIFORNIA )
COUNTY OF TULARE ) ss.

CITY OF VISALIA )
I, Leslie B. Caviglia, City Clerk of the City of Visalia, certify the foregoing is the full and true Resolution 2025-48 passed and adopted by the Council of the City of Visalia at a regular meeting held on July 21, 2025.

Dated:July 21, 2025 LESLIE B. CAVIGLIA, CITY CLERK
By Reyna Rivera, Chief Deputy City Clerk
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248
249
Meeting Date: 4/6/2015
City of Visalia
Agenda Item Transmittal
I Agenda Item Number (Assigned by City Clerk): 6.
lten6. - Page 1
Agenda Item Wording: Approve Resolution 2015-09, authorizing the terms and conditions for portal to portal reimbursement from the State of California for Visalia Fire Department response away from official duty station and assignment to an emergency incident outside of City jurisdiction.

Deadline for Action: 4/6/2015
Submitting Department: Fire Department
Contact Name and Phone Number:

Dou McBee, Fire Chief, 713-4220; Brian Adne , Battalion Chief, 7 I 3-4265 Department Recommendation: It is recommended the City Council adopt Resolution 2015-09 authorizing the terms and conditions for portal to portal reimbursement for Fire Department response away from official duty station and assignment to an emergency incident outside City jurisdiction.

Summary:

For more than 20 years, the Visalia Fire Department has provided assistance to the California Governor's Office of Emergency Services (CalOES) during statewide emergencies, mainly during fire season. This assistance is provided under the California Statewide Mutual Aid Plan adopted in 1950 by the Governor's Office. Under the Mutual Aid Plan is the California Fire Assistance Agreement (CF AA), which identifies compensation to agencies for the cost of assisting the State of California during statewide emergencies. Currently, Visalia Fire personnel are reimbursed on a "Portal to Portal" basis, meaning staff is compensated from the time of dispatch to the time personnel returns to home base. To continue receiving this type of compensation, CalOES is requiring that agencies provide a governing body resolution, or equivalent document that describes the agency's current pay practice.

CalOES has provided the agencies' a template resolution with appropriate wording that supports "portal to portal" compensation.

Background Discussion:

The Visalia Fire Department has provided support to CalOES during statewide emergency incidents for more than 20 years, especially during fire season. Providing this assistance to the state is an integral part of the California Statewide Master Mutual Aid Plan. Cal-OES is responsible for the coordination of overall state agency response to major disasters in support of local government. The office is responsible for assuring the state's readiness to respond to and recover from all hazards - natural, manmade, warcaused emergencies and disasters, and for assisting local governments in their emergency preparedness, response, recovery, and hazard mitigation efforts. CalOES has provided the City of Visalia with a Fire -137- 250
Item>. - Page 2
Engine to respond to statewide emergencies as required. The department also uses this engine in day to day operations.

When the Visalia Fire Department responds to emergency incidents, the City is reimbursed for equipment and personnel time under the California Fire Assistance Agreement (CF AA). The CFAA is reviewed and negotiated every five years by CalOES Fire and Rescue Branch. The CF AA is the negotiated reimbursement mechanism for local government fire response agencies through the California Statewide Mutual Aid Plan. The agreement outlines the terms and conditions of reimbursement for agency participation.

The CFAA has recently been negotiated and finalized, with changes being effective January 2015. One of the main changes in the agreement is the method by which personnel will be reimbursed. It is the intent of the CFAA to compensate California Fire and Rescue Mutual Aid System Agencies for the cost of assisting the State of California and the Federal Fire Agencies. The compensation shall be consistent with the California Fire and Rescue Mutual Aid System Agency's normal internal business practices and any existing memorandum of understanding, memorandum of agreement or governing body resolution, or equivalent which supports those business practices.

Currently, and for many years now the Visalia Fire Department has been compensated for providing emergency assistance to the state "portal to portal" (from the time of dispatch to the return to jurisdiction). The 2015 CFAA requires, any agency seeking reimbursement of personnel for more than actual hours worked on the incident must file a governing body resolution (GBR) or equivalent document with CalOES Fire and Rescue Division. The GBR or equivalent document shall indicate how personnel will be paid. This documentation is due to CalOES by May 31, 2015. If the City does not submit a GBR or equivalent document by May 31, 2015, and personnel responds to an emergency, fire personnel will only be reimbursed for actual hours worked.

The current MOU between the City and the Visalia Firefighters Association and the MOA between the City and Fire Battalion Chiefs do not contain a direct reference to portal to portal payment or an inference of such when personnel leave the community for an out of town mutual aid assignment; therefore staff recommends that the Council adopt a resolution with appropriate wording to support portal to portal pay.

There will be no financial costs or implications by the City of Visalia for adopting this resolution. There will be no change in the manner by which Fire Department employees are compensated because the City already compensates fire personnel on a portal to portal basis. However, CalOES requires wording to be specific to say Visalia Fire Department employees are compensated portal to portal when responding away from their official duty station and assigned to an emergency incident outside of their jurisdiction.

Fiscal Impact: None
Prior Council Action: None
Other: None
-138- 251
Committee!Commission Review and Action: None
Alternatives:
lten-6. - Page 3
Surrender CalOES Engine and ask to be relieved of the Statewide Master Mutual Aid Agreement. This alternative is not recommended as the City needs to maintain a good working partnership with the state.

Attachments:

Resolution 20 I 5-09 of the City of Visalia authorizing the terms and conditions for portal to portal reimbursement.

Recommended Motion (and Alternative Motions if expected):

Approve Resolution 2015-09, authorizing the terms and conditions for portal to portal reimbursement from the State of California for Fire Department response away from official duty station and assignment to an emergency incident outside of City jurisdiction.

Copies of this report have been provided to:

Environmental Assessment Status
CEQA Review: NA
-139- 252
lterr6. - Page 4
RESOLUTION 2015-09

A RESOLUTION OF THE CITY OF VISALIA AUTHORIZING THE TERMS AND CONDITIONS FOR FIRE

DEPARTMENT RESPONSE AWAY FROM THEIR OFFICIAL DUTY STATION

AND ASSIGNED TO AN EMERGENCY INCIDENT
WHEREAS, the City of Visalia Fire Department is a public agency located in the County of Tulare, State of California, and
WHEREAS, it is the City of Visalia's desire to provide fair and legal payment to all its employees for time worked; and
WHEREAS, the City of Visalia has in its employ, Fire department response personnel that include: Fire Chief, Fire Battalion Chief, Fire Captain, Fire Captain Paramedic, Fire Engineer, Fire Engineer Paramedic and Firefighter/Paramedic,; and
WHEREAS, the City of Visalia will compensate its employees portal to portal while in the course of their employment and away from their official duty station and assigned to an emergency incident, in support of an emergency incident, or pre-positioned for emergency response; and WHEREAS, the City of Visalia will compensate its employees overtime in accordance withh their current Memorandum of Understanding while in the course of their employment and away from their official duty station and assigned to an emergency incident, in support of an emergency incident, or prepositioned for emergency response.

THEREFORE, IT IS HEREBY RESOLVED BY THE CITY COUNCIL OF THE CITY OF VISALIA, that:

1. Personnel shall be compensated according to Memorandum of Understanding (MOU), Personnel Rules and Regulations, and/or other directive that identifies personnel compensation in the workplace.

2. In the event a personnel classification does not have an assigned compensation rate, a "Base Rate" as set forth in an organizational policy, administrative directive or similar document will be used to compensate such personnel.

3. The City of Visalia Fire Department will maintain a current salary survey or acknowledgement of acceptance of the "base rate" on file with the California Governor's Office of Emergency Services, Fire Rescue Division.

4. Personnel will be compensated (portal to portal) beginning at the time of dispatch to the return to jurisdiction when equipment and personnel are in service and available for agency response.

5. Fire department response personnel include: Fire Chief, Battalion Chief, Fire Captain/Paramedic, Engineer/Paramedic, Firefighter/Paramedic and Firefighter/EMT. -140- 253
Cal OES# 6143-2019
CAL FIRE# 7CA004953
USFS# 20-FI-11052012-147
NPS# P20AC00506
BLM# BLM CFPA CA915-2004
F&WS# FFo8F00000-D-Joo1
BIA# A20ACPRO01