Visalia City Council
August 3, 2026

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
Visalia City Council
707 W. Acequia
Visalia, CA 93291
and
Meeting call-in telephone
number: 669-444-9171
Meeting ID:
885 1675 5867
(*9 to request to speak
*6 to unmute/mute)
Meeting online link:
https://visalia.zoom.us/j/
88516755867
City Council Chambers7:00 PMMonday, August 3, 2026

ROLL CALL
CALL TO ORDER CLOSED SESSION - 6:30 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.

ADJOURN TO CLOSED SESSION
CALL TO ORDER REGULAR SESSION - 7:00 PM

PLEDGE OF ALLEGIANCE

INVOCATION LED BY PASTOR CHRIS ARCHER, NAZARENE CHURCH

SPECIAL PRESENTATION / RECOGNITION
Recognition of Regional Champions - Cal Ripken Blue All Stars 11U Recognition of Regional Champions - Cal Ripken Blue All Stars 12U

PUBLIC COMMENTS

1 Visalia City Council Meeting Agenda - Final August 3, 2026 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. 26-0006

2. Authorization for payment to the California Vanpool Authority (CalVans) - Authorize the payment of California Vanpool Authority (CalVans) invoices for the Visalia Transit contributions to the Authority’s vanpool program.
26-0039

3. Award contract for Fire Station 54 parking lot rehabilitation project - Authorize the City Manager to award the construction contract to Tosted Asphalt, Inc. for the Fire Station 54 parking lot rehabilitation project in the amount of $176,479.84 and appropriate $115,000 from the General Fund.
26-0048

4. Conditional acceptance of Federal Aviation Administration grant funds, with appropriation upon award - Authorize the conditional acceptance of a Federal Aviation Administration Airport Infrastructure Grant in the amount of $201,020 for the design phase of the Tiedown Apron A3 Reconstruction Project at the Visalia Municipal Airport, and authorize the appropriation of grant funds upon award and the local match of $10,580 from the Airport Fund.
26-0052

2 Visalia City Council Meeting Agenda - Final August 3, 2026

5. Award contract and appropriate funds for St. John’s River Trail landscaping - Authorize the City Manager to award the
construction contract to Gowin Green Landscaping for the St.

John’s River Trail landscaping east of Dinuba Boulevard project in the amount of $287,826; and authorize the additional appropriation of $255,000 from the Waterways Capital Fund (Fund 261). 26-0061

6. Ordinance adoption authorizing the City Manager to award a contract and approve a long-term lease agreement for 408 acres of open ground to Correia Custom Farming Inc. - Second reading and adoption of Ordinance No. 2026-08 authorizing the City Manager to award a contract and approve a long-term lease agreement for 408 acres of open ground to Correia Custom Farming Inc.
26-0064

7. Ordinance adoption - Second reading and adoption of Ordinance No. 2026-05, adding Chapter 4.04, “Commercial Cannabis Activity” to the Visalia Municipal Code; rescinding Chapter 5.66; amending Chapter 8.64; and approving Zoning Text Amendment No.
2026-01, and adoption of Resolution No. 2026-42, establishing the application and selection process for both storefront and non-storefront retail cannabis business license applications. 26-0068

8. Ordinance adoption - Second reading and adoption of Ordinance No. 2026-07 pertaining to the approval of Annexation No. 2025-04:

A request by D.R. Horton to prezone ±78.11 acres to R-1 (Single-Family Residential zone), R-M-2 (Multi-family residential zone - 3,000 square foot minimum site area), R-M-3 (Multi-family residential zone - 1,200 square foot minimum site area), and QP (Quasi-public zone). The site is located on the northeast corner of Lovers Lane and Caldwell Avenue (APN: 127-020-020 and -021). 26-0076

9. Adoption of revised Resolutions - Adoption of revised Resolution Nos. 2026-47 and 2026-48 pertaining to the upholding of an appeal in accordance with the City Council's prior action taken for Clements Ranch Tentative Subdivision Map No. 5606 and
Tentative Parcel Map No. 2025-13, a request to subdivide parcels totaling ±78.11 acres into 292 lots for single-family residential uses and additional out lots for private streets, utilities, landscaping, lighting, trails, and parks, to be located within the proposed R-1, R-M-2, and QP zones. The project is located on a ±78.11-acre site located on the east side of South Lovers Lane Avenue, north of Caldwell Avenue (APN: 127-020-020 and -021).
26-0075

10. Notice of completion - Request authorization to file the notice of completion for the Mill Creek culvert replacement project. 26-0069

3 Visalia City Council Meeting Agenda - Final August 3, 2026

11. Notice of completion - Request authorization to file the notice of completion for the installation of cellular radios in the City of Visalia’s sanitary sewer lift stations.
26-0070

12. Designate City owned property into public right of way - Adopt Resolution 2026-55 designating City owned property located at the northwest corner of Clancy Street and Nicholas Avenue into the public right of way system.
26-0071

13. Authorization to accept the CHP Cannabis Tax Fund Grant Program - Authorize the Visalia Police Department to accept fiscal year 2026/27 California Highway Patrol Cannabis Tax Fund Grant Program in the amount $156,978 and approve Resolution No. 2026-54.
26-0079

14. ATP Grant Letter - Authorize the City Manager to issue a letter to the California Transportation Commission terminating an Active Transportation Program grant of $795,000 that was awarded to the City of Visalia for construction of the Goshen - Visalia Corridor improvement project, from Mooney Boulevard to Giddings Street; and to include a statement of support in the letter from the City to reprogram these ATP funds to the Caltrans Ivanhoe Safe Routes to School project, located in Tulare County.
26-0089

REGULAR ITEMS AND PUBLIC HEARINGS
Comments related to regular Items and Public Hearing Items are limited to three minutes per speaker, for a maximum of 30 minutes per item. The Mayor may reasonably limit or extend the public comment period to preserve the Council's interest in conducting efficient, orderly meetings.

1. Shopping Cart Ordinance Update - Consideration of and direction on initiating potential Municipal Code updates to Visalia Municipal Code Chapter 8.70 Abandoned Shopping Carts,
Citywide.
25-0786

2. Review the Visalia Police Department AB 481 annual report and adopt Resolution 2026-53 - Conduct the annual public meeting required by Assembly Bill 481 to review the Visalia Police Department 2025 Military Equipment Annual Report, review Ordinance No. 2022-09 adopting the Military Equipment Use Policy, adopt Resolution 2026-53 renewing the Military Equipment Use Policy and approving the continued use of the equipment described in the AB 481 annual report.
26-0059

CLOSED SESSION REPORT

4 Visalia City Council Meeting Agenda - Final August 3, 2026

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: Albe Industries, Inc., a California corporation APN: 077-200-007(portion)
Purpose: Shirk Capacity Enhancement Project
Price: $2,718.00
Closing Date: 7/23/2026
Project Manager: Bryce Nagel
Buyer: City of Visalia

26-0082

ADJOURNMENT

UPCOMING CITY COUNCIL MEETINGS

1. Upcoming City Council Meetings
Monday, August 17, 2026 @ 7:00 p.m. at 707 W. Acequia
Tuesday, September 8, 2026 @ 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.
26-0030

5 Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 26-0006 Agenda Date: 8/3/2026 Agenda #: 1.

Agenda Item Wording:

Authorization to read ordinances by title only.

Visalia City Council Printed on 7/23/2026Page 1 of 1
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6 Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 26-0039 Agenda Date: 8/3/2026 Agenda #: 2.

Agenda Item Wording:

Authorization for payment to the California Vanpool Authority (CalVans) - Authorize the payment of California Vanpool Authority (CalVans) invoices for the Visalia Transit contributions to the Authority’s vanpool program.

Agenda Date: 08/03/2026
Prepared by:

Angelina Baker, Transit Manager, [email protected], (559)713-4591 John Lollis, Assistant City Manager, [email protected], (559)713-4323 Department Recommendation:

Staff recommends that the City Council authorize the continued payment of invoices through January 2027 to the California Vanpool Authority (Calvans) until a Request for Proposals (RFP) is released to the public and a contract issued based on the RFP.

Summary:

At its meeting on August 4, 2025, the Council authorized the continued payment of monthly CalVans invoices until a new contract with Calvans was awarded or a RFP was released to the public and a contract issued based on the RFP by June 1, 2026. Over the past year, since the Council’saction, staff explored multiple options including whether the contract can be sole sourced, and whether all potential vendors would be qualified to provide the service that the Visalia vanpool program requires.

Additionally, staff has been exploring the option of establishing its own vanpool service operated by Visalia Transit. Staff determined that the RFP process was the best course of action at this time, which the RFP has been developed and is being prepared for release to the public. While the RFP process is completed, staff requests authority to continue payment of invoices through January 2027.

Pursuant to the current agreement, the City pays $300/month per vanpool, and the number of vanpools for Visalia over the last year is shown in the table below:

MONTH COUNT
JUL 2025 33
AUG 2025 33
SEP 2025 33
OCT 2025 29
NOV 2025 29
DEC 2025 27
JAN 2026 28
FEB 2026 28
MAR 2026 28
APR 2026 28
MAY 2026 10
JUN 2026 9
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MONTH COUNT
JUL 2025 33
AUG 2025 33
SEP 2025 33
OCT 2025 29
NOV 2025 29
DEC 2025 27
JAN 2026 28
FEB 2026 28
MAR 2026 28
APR 2026 28
MAY 2026 10
JUN 2026 9
Background Discussion:

In May 2016, the City of Visalia entered into a five-year Agreement with the California Vanpool Authority (CalVans), which expired in May 2021. At its meeting on April 14, 2023, the City Council approved entering into a one-year Agreement, which expired in May 2024. At its meeting on August 4, 2025, the Council authorized continued participation in the Calvans vanpool program and the payment of invoices through June 2026.

History: CalVans is a Joint Power Authority (JPA) public transportation agency, sponsored by the California Vanpool Authority, with membership of eleven (11) Municipal Planning Organizations across the state of California, including the Tulare County Association of Governments (TCAG).

CalVans offers employers and their employees a reliable, cost-effective, alternative mode of transportation to the single occupant vehicle (SOV) in areas or on routes that are not efficiently served by public transit. Typically, this is for groups of employees that work for the same employer or employer location and usually travel across city and county lines. CalVans provides the vehicle, maintenance, and insurance as a turnkey operation. Riders pay a flat fee for an 8-, 10-, or 12- passenger van; and one, or more, employees are certified as the driver.

Transit agencies located in an Urbanized Area (UZA) receive a Federal Transit Administration (FTA) Section 5307 apportionment based on its annual reporting into the National Transit Database (NTD) system. This reporting includes how far transit vehicles travel, how long they spend traveling, how many riders are carried, and the cost to provide the service. Generally, the larger the system, the more Section 5307 funds are received. Transit agencies outside of a UZA, but serving the UZA area, may also report passenger data related to trips that began or ended in the UZA. Vanpool trips are an example of a type of transit trip that may contribute substantial ridership data to a UZA. The reporting of the trips is done by the vanpool provided on behalf of the UZA. These Section 5307 funds generated by the additional reporting stay with the transit agency serving the UZA, it does not return to the agency that reported the passenger data. The reported miles do not impact the Section 5307 apportionment for two (2) years, i.e. the FY 2024-25 miles will count towards FY 2026-27.

CalVans has been reporting these miles on behalf of Visalia Transit for several years, which has resulted in an increase in Section 5307 federal transit funding. Beginning in FY 2022-23 based upon the 2020 Census, the Visalia UZA was reclassified from a “Large UZA” (200,000+ population) to a “Small UZA” (<200,000 population) given the removal of Exeter and Tulare resulting in the Visalia UZA popular dropping beneath 200,000. Given the 2-year lag in FTA 5307 funding, starting in FY 2024-25 the City began to receive Small Transit Incentive Cities (STIC) funds as a Small UZA for transit performance metrics that exceeded industry averages of Large UZA transit agencies. There are six (6) STIC performance metrics of which each is worth approximately $500,000 if achieved, which in FY 2024-25 the City received two (2) STIC factors based upon FY 2022-23 performance that resulted in $1,006,772 of additional Section 5307 funding. For FY 2025-26, the City received four (4) STIC factors based upon FY 2023-24 performance that resulted in $2,169,648 of additional Section 5307 funding - the passenger and vehicles miles reported by the CalVans vanpool program directly Visalia City Council Printed on 7/31/2026Page 2 of 4
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5307 funding - the passenger and vehicles miles reported by the CalVans vanpool program directly contributed to the City receiving two (2) of the four (4) STIC factor funds.

It should be noted that the number of vanpools invoiced to the City and other participating transit agencies has decreased significantly beginning in May 2026, which is due to vanpools being self- terminated after CalVans implemented an emergency rate increase by removing the paid fuel benefit beginning in April 2026 due to escalating fuel costs and other budgetary and fiscal challenges. Staff believes that working with Cal Vans and other partners, additional outreach, education and reformatting of some parts of the program should lead to increased usage of the program.

Fiscal Impact including annual maintenance and operating costs:

The funding for the contracted vanpool service is an ongoing operational expense for the Transit Division budgeted under 4551-55375. The Tulare County Association of Governments (TCAG) has offered federal Congestion Mitigation and Air Quality Improvement Program (CMAQ) grant funds to help fund the Visalia vanpool program. The existing Transit Division budget currently has an annual budget of $132,000 in Local Transportation Funds (LTF) for the vanpool program which could alternatively be used to support other transportation needs with the utilization of CMAQ funds from TCAG. The primary funding source of Visalia Transit is the Section 5307 federal transit grant funds, combined with match Local Transportation Funds (LTF) is used to pay the Operations and Maintenance contract. The more Section 5307 funding the City receives for operations equates to less LTF funds necessary to fund operations and that can be used for other transportation needs.

Prior Council Action:

August 4, 2025: Authorization for Payment to the California Vanpool Authority (25-0325) Alternatives:

The Council could deny the recommendation and not participate in a vanpool program until the RFP process is completed and a new contract initiated, resulting in an expected loss in Section 5307 STIC factor funding in FY 2028-29.

Recommended Motion (and Alternative Motions if expected):

I move to authorize the continued participation in the CalVans program and payment of monthly invoices until the RFP process has been completed and a new contract established.

Environmental Assessment Status: N/A
CEQA Review: N/A
Deadline for Action: 08/03/2026
Attachments:

City Council Agenda Staff Report: 25-0325
Agreement for Services: May 24, 2023
Strategic Goal: Indicates which City Strategic Goal(s) this item supports. Check all that apply. ☒
Economic
Vitality
☐
Organizational
Excellence
☒
Fiscal
Strength
☒
Infrastructure &
Growth
☐
Quality of
Life
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☒
Economic
Vitality
☐
Organizational
Excellence
☒
Fiscal
Strength
☒
Infrastructure &
Growth
☐
Quality of
Life
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AGREEMENT FOR SERVICES

THIS AGREEMENT is made and entered into this 24th day of May, 2023, by and between the City of Visalia (hereinafter referred to as "VISALIA" or “CLIENT”) and the California Vanpool Authority ( CalVans) (hereinafter referred to as "CONTRACTOR").

W I T N E S S E T H
WHEREAS, VISALIA is the recipient of additional Federal 5307 funds through the reporting efforts of CalVans for vanpool trips that travel to or from the Visalia UZA, it is the desire of both parties to encourage local participation in the CalVans program so as to increased 5307 funding to VISALIA; and
WHEREAS, VISALIA is committed to encouraging increased vanpool use in Tulare County through the financial support of vanpool groups traveling to or from Tulare County; and
WHEREAS, CONTRACTOR is qualified and experienced and has necessary technical and personnel resources to provide such services for the provision of vanpool services; and

NOW, THEREFORE, THE PARTIES HERETO DO MUTUALLY AGREE AS FOLLOWS:

1. SCOPE OF WORK
A. CONTRACTOR shall perform those services described in the “Project Tasks/Services, Timeline and Budget,” Exhibit A attached hereto and incorporated herein by this reference and shall comply with all relevant conditions as set forth in the AGREEMENT.

B. Time is of the essence in this Agreement.

C. Said services and all duties incidental or necessary thereto shall be performed diligently and competently and in accordance with professional standards of performance.

2. TERM
A. The term of this Agreement shall be from the date of its execution until the completion of the work contemplated by this Agreement and its final acceptance by VISALIA unless terminated earlier as provided herein.

CONTRACTOR shall complete all tasks on or before May 24, 2024, unless otherwise extended by written authorization and not to exceed a total of five years.

B. Services performed under this Agreement shall commence only upon written Notice to Proceed by VISALIA to CONTRACTOR.
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This Agreement includes the following Exhibits:

Exhibit A. Project Tasks/Services, Timeline, and Budget Exhibit B. Debarment and Suspension Certification
Exhibit C. Federal Tax Form W-9, Request for Taxpayer
Identification Number and Certification

3. COORDINATION/STAFFING
A. CONTRACTOR shall assign CalVans Director as Project Manager to personally participate in said project. VISALIA also retains the right to approve any substitution of the Project Manager. No portion of the work included in this Agreement shall be subcontracted, excep t as provided herein, without the prior, written authorization of VISALIA.

B. Services described in the Scope of Work shall be performed by CONTRACTOR’s staff, Subcontractor(s) or other members of the project team, hereinafter referred to as “Subcontractor (s),” listed in the “Project Tasks/Services, Timeline, and Budget,” Exhibit A , attached hereto and incorporated by this reference.

4. COMPENSATION
VISALIA shall pay CONTRACTOR a firm fixed fee as shown in Exhibit A of THREE HUNDRED AND NO/100 DOLLARS ($300.00) per
vanpool per month for each reported vanpool operation. In no event shall total compensation exceed $300,000 (THREE HUNDRED THOUSAND AND NO HUNDRED AND NO/100 DOLLARS) annually, for the term of one-year or the subsequential four one-year options.

5. INVOICING
A. Invoices for services must be presented to VISALIA quarterly no later than the fifteenth day of the month for the month prior.

CONTRACTOR shall submit an invoice to VISALIA stating the amount due for such services on a monthly basis th roughout the duration of the project. Said monthly invoicing shall reflect the task worked on, the percentage of the task completed, and the total dollar amount for the task in comparison to the invoiced amount based upon the percentage of the task then co mpleted. VISALIA shall reimburse the CONTRACTOR as promptly as its fiscal procedures permit, upon 58

receipt of itemized invoices submitted in accordance with this Agreement. Payment of the invoices will be made to CONTRACTOR after acceptance and approval by VISALIA. Such reimbursements shall be based upon actual eligible costs incurred by the CONTRACTOR consistent with the “Project Tasks/Services, Timeline, and Budget,” Exhibit A. No interest or carrying changes shall accrue to CONTRACTOR by reason of delayed payment.

B. Invoicing Format and Content: All invoices submitted to VISALIA for payment shall be sent directly to:

City of Visalia
ATTN: Transit Manager
425 E. Oak Ave., Suite 301
Visalia, CA 93291

1. The invoice shall be entitled “Invoice” or otherwise clearly identify that the document is an Invoice, and shall contain the following information:
i. VISALIA’s “Bill To” information as stated in the above paragraph;
ii. Invoice number and/or billing number specified by
CONTRACTOR. The invoice nu mber must be unique for
each invoice submitted;
iii. Invoice date;
iv. Billing period specified with beginning and ending dates .

The beginning date must not be sooner than the Notice to Proceed date of the Agreement, or within any previous
billing dates;
v. Total amount due for the billing period;
vi. Total Contract Value; and
vii. VISALIA Project Manager

5. AGREEMENT COMPLETION RETAINER
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No retainage will be held by VISALIA from progress payments due to CONTRACTOR.

6. SATISFACTORY PERFORMANCE
Payment for services under this Agreement is contingent upon VISALIA’s determination that the performance of the CONTRACTOR has been satisfactory.

7. OWNERSHIP OF WORK PRODUCT
A. Ownership of any reports, data, studies, surveys, charts, memoranda, and any other documents which are developed, compiled, or produced as a result of this Agreement, whether or not completed, shall vest with VISALIA.

8. ADDITIONAL SERVICES
CONTRACTOR may be requested to perform additional services beyond the original Scope of Services . Such work may be u ndertaken only upon prior written authorization of VISALIA based upon an agreed amount of compensation.

9. NOTICES
Any notice to be given to the parties hereunder shall be addressed as follows (until notice of a different address is given to the parties):

VISALIA: City of Visalia Transit Manager
425 E. Oak Ave., Suite 301
Visalia Ca 93291

CONTRACTOR: Georgina Landecho, Executive Director
11050 13th Ave.

Hanford, CA 93230

Any and all notices or other communications required or permitted relative to this Agreement shall be in writing and shall be deemed duly served and given when personally delivered to either of the parties, CONTRACTOR or VISALIA, to whom it is directe d; or in lieu of such personal s ervice, when deposited in the United States m ail, first class, postage prepaid, addressed to CONTRACTOR or to VISALIA at the addresses set forth above.

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Either party may change their address for the purpose of this paragraph by giving written notice of suc h change to the other party in the manner provided for in the preceding paragraph.

10. AGREEMENT CONTAINS ALL UNDERSTANDINGS:

AMENDMENT

A. This document represents the entire and integrated Agreement between VISALIA and C ONTRACTOR, and supersedes all pr ior negotiations, representations and agreements, either written or oral.

B. Any modification or amendment to this Agreement must be in writing.

C. Neither VISALIA nor CONTRACTOR shall be deemed to have waived any obligation of the other, or to have ag reed to any modification to this Agreement unless it is in writing, and signed by the party giving the waiver.

12. SEVERABILITY

A. If any term of this Agreement is held invalid by a court of competent jurisdiction or arbitrator the remainder of this A greement shall remain in effect.

13. TERMINATION

A. Termination of Convenience of VISALIA
VISALIA may terminate this Agreement at any time by giving notice to the CONTRACTOR of such termination (including the effective termination date) at least sixty (60) calendar days before the effective date of such termination. If this Agreement is terminated by VISALIA, as provided herein, VISALIA’s only obligation shall be the payment of fees and expenses incurred prior to the termi nation date, for work deemed sat isfactory to VISALIA, in accordance with the cost provisions of this Agreement.

B. Termination for Cause
If through any cause, the CONTRACTOR shall fail to fulfill in a timely and proper manner its obligations under this A greement, or if the CONTRACTOR v iolates any of the covenants, terms, or stipulations of this Agreement, VISALIA shall thereupon have the right to terminate the Agreement by giving not less than ten (10) working days written notice to the CONTRACTOR of the intent to terminate and specifying the effective date thereof. In such event, only 61

vanpool subsidies billed will be honored, any unbilled subsidies shal l not be honored.

14. RECORDS RETENTION AND AUDITS
CONTRACTOR shall maintain adequate records of contract performance costs, expenses, etc., and make these records available for inspection, audit, and copying by VISALIA and CONTRACTOR’s principal place of business during the agreement period and for a period of three (3) years from the date of final payment, except in the event of litigation or settlement of claims arising from the performance of this contract, in which case Contractor agrees to maintain same until VISALIA, or any of their duly authorized representatives, have disposed of all such litigation, appeals, claims or exceptions related thereto. Reference 49 CFR

18.39(i)(11).

15. SUBCONTRACTING
In accordance with Government Code Section 7550, CONTRACTOR agrees to state in a separate section of any filed report the numbers and dollars amounts of all contracts and subcontracts relating to preparation of the report.

16. ASSIGNMENT
The Agreement shall not be assigned by the CONTRACTOR, in whole or in part, without the prior written consent of VISALIA. Any purported assignment or delegation of performance in violation of this provision is void. Subject to the foregoing this Agreement is binding and shall inure to the benefit of the successors and assigns of the parties to this Agreement.

17. INDEMNIFICATION
In no event shall VISALIA, their officers, employees and agents be liable for incidental, indirect, special or consequential damages, lost profits, savings, revenues, lost data, downtime, accidents, death, injury, dismemberment, and other losses whether or not VISALIA, their officers, employees and agents have been advised of the possibility of such damages.

To the full extent permitted by law, CONTRACTOR shall indemnify, hold harmless, release and defend VISALIA, their officers, employees and agents from and against any and all actions, claims, demands, damages, disability, 62

losses, expenses including attorney's fees and other defense costs and liabilities of any nature that may be asserted by any person or entity including CONTRACTOR and vanpool users, in whole or in part, arising out of Contractor’s activities hereunder, including the activities of other persons employed or utilized by CONTRACTOR in the performance of this Agreement (including design defects and regardless of VISALIA's approval, use or acceptance of the work or work product hereunder) excepting liabilities due to the admitted or adjudicated sole negligence or willful misconduct of VISALIA. If the adjudicated or admitted sole negligence or willful misconduct of VISALIA has contributed to a loss, CONTRACTOR shall not be obligated to indemnify VISALIA for the proportionate share of such loss caused by such sole negligence or willful misconduct. This indemnification obligation is not limited in any way by any limitation on the amount or type of damages or compensation payable by or for CONTRACTOR under Worker's Compensation, disability or other employee benefit acts or the terms, applicability or limitations of any insurance held or provided by CONTRACTOR and shall continue to bind the parties after termination/completion of this Agreement.

18. INSURANCE/NOTIFICATION
Prior to the beginning, and throughout the duration, of the work, CONTRACTOR will maintain insurance in conformance with the requirements set forth below. CONTRACTOR will use existing coverage to comply with these requirements. If that existing coverage does not meet the requirements set forth here, it will be amended to do so.

CONTRACTOR acknowledges that the insurance coverage and policy limits set forth in this section constitute the minimum amount of coverage required. Any insurance proceeds in excess of the limits and coverage required in this agreement and which is applicable to a given loss, will be available to VISALIA.

CONTRACTOR is covered by, and agrees to maintain, general liability insurance for bodily injury and property damage arising directly from its negligent acts or omissions with limits as specified below. Certificates of insurance shall be provided to VISALIA prior to commencement of work by CONTRACTOR. CONTRACTOR agrees to indemnify, protect, defend and name VISALIA, its public officials, officers and employees as additional insured on the Commercial General Liability and Business Auto Insurance and hold harmless from any loss, damage or liability arising directly from any negligent act or omission by CONTRACTOR.

CONTRACTOR shall not be responsible for any loss, damage or liability arising from any act or omission by VISALIA, its officials, officers or employees.
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CONTRACTOR shall provide the following types and amounts of insurance:

A. Commercial Gener al Liability Insurance using Ins urance S ervices Office "Commercial General Liability" policy form CG 00 01, with an edition date prior to 2004, or the exact equivalent. Coverage for an additional insured shall not be limited to its vicarious liability. Defense costs must be paid in addit ion to limits. Limits shall be no less than $1,000,000 per occurrence for all covered losses and no less than $2,000,000 general aggregates.

B. Workers' Compensation on a state -approved policy form providing statutory benefits as required by law with employer’s liability limits no less than $1,000,000 per accident for all covered losses.

C. Business Auto Coverage on ISO Business Auto Coverage form CA 00 01 including owned, non -owned and hired autos, or the exact equivalent. Lim its shall be no less than $1,000 ,000 per accident, combined single limit. If CONTRACTOR owns no vehicles, this requirement may be satisfied by a non -owned auto endorsement to the general liability policy described above. If CONTRACTOR or CONTRACTOR'S emplo yees use personal autos in any w ay o n th is project, CONTRACTOR shall obtain e vidence of personal auto liability coverage for each such person.

D. Errors and Omissions Liability CONTRACTOR shall provide evidence of professional liability insurance on a polic y form appropriate to Contractor ’s p rofession. Limits shall be no less than $1,000,000/claim.

E. Certificate of Insurance CONTRACTOR shall file a certificate of insurance completed and filed with VISALIA within fifteen (15) days of execution of this Agreeme nt and prior to engaging any operation or activities set forth in this Agreem ent. The foregoing policies shall provide that no cancellation, major change in coverage or expiration by insurance company or insured during the term of this contract shall occur without thirty (30) days writte n notice to VISALIA prior to the effective date of such cancellation or change in coverage.

F. All such insurance shall be written on an occurrence basis, or, if the policy is not written on an occurrence basis, such policy w ith the coverage required herein shall continue in effect for a period of two (2) years after completion of the contract.

G. The Commercial General Liability and Business Auto insurance policies shall provide an endorsement naming VISALIA, its officers, agents, employees and volunteers a s Additional Insured, and shall further provi de that such insurance is primary insurance to any insurance or self -insurance maintained by VISALIA and that the 64

insurance of the Additional Insured shall not be called upon to contribute to a loss covered by the insurance VISALIA.

19. CONFLICT OF INTEREST
CONTRACTOR covenants that it presently has no interest and shall not acquire any interest, direct or indirect, which would conflict in any manner or degree with the performance of its services hereunder. CONTRACTOR further covenants that in the performance of this Agreement, no person having any such interest shall be employed.

20. STATEMENT OF ECONOMIC INTEREST
If VISALIA determines CONTRACTOR comes within the definition of CONTRACTOR under the Political Reform Act (Government Code §87100), CONTRACTOR shall complete and file and shall require any other person doing work under this Agreement to complete and file a "Statement of Economic Interest" with VISALIA disclosing CONTRACTOR and/or such other person's financial interests.

21. MERGER
This Agreement shall constitute the entire Agreement between the parties and shall supersede any previous agreements, whether verbal or written, concerning the same subject matter. No modification of this Agreement shall be effective unless and until evidence by a writing is signed by both parties.

22. DEFAULT
If CONTRACTOR should fail to perform any of his obligations hereunder, within the time and in the manner herein provided or otherwise violate any of the terms of this Agreement, VISALIA may terminate this Agreement by giving CONTRACTOR written notice of such termination, stating the reason for such termination. In such event, CONTRACTOR shall be entitled to receive as full payment for all services satisfactorily rendered and expenses incurred hereunder, an amount which bears the same ratio to the total fees specified in the agreement as the services satisfactorily rendered hereunder by CONTRACTOR bear to the total services otherwise required to be performed for such total fee; provided, however, that VISALIA may withhold payments not yet made to CONTRACTOR for the purpose of setoff until such time as the exact amount of damages due VISALIA from CONTRACTOR is determined.
65

23. NO WAIVER OF BREACH/ TIME
The waiver by VISALIA of any breach of any term or promise contained in this Agreement shall not be deemed to be a waiver of such term or provision or any subsequent breach of the same or any other term or promise contained in this Agreement. Time is of the essence in carrying out the duties hereunder.

24. THIRD PARTY BENEFICIARIES
Nothing contained in this Agreement shall be construed to create and the parties do not intend to create any rights in third parties.

25. ATTORNEYS’ FEES, APPLICABLE LAW AND FORUM
In the event either party brings an action or proceeding for damages arising out of the other's performance under this Agreement or to establish the right or remedy of either party, the prevailing party shall be entitled to recover reasonable attorneys’ fees and costs as part of such action or proceeding, whether or not such action or proceeding is prosecuted to judgment. This Agreement shall be construed and interpreted according to California law, and any action to enforce the terms of this Agreement or for the breach thereof shall be brought and tried in the County of Tulare.

26. INDEPENDENT CONTRACTOR
The parties intend that CONTRACTOR, in performing the services specified herein, shall act as an independent contractor and shall have control of the work and the manner in which it is performed. CONTRACTOR is not to be considered an agent or employee of VISALIA and is not entitled to participate in any pension plan, insurance, bonus or similar benefits VISALIA provides its employees. In the event VISALIA exercises its right to terminate this Agreement, CONTRACTOR expressly agrees that he/she shall have no recourse nor right of appeal under rules, regulations, ordinances or laws applicable to employees.

27. TAXES
CONTRACTOR agrees to file tax returns and pay all applicable taxes on amounts paid pursuant to this Agreement and shall be solely liable and 66

responsible to pay such taxes and other obligations, including, but not limited to, state and federal income and FICA taxes. CONTRACTOR agrees to indemnify and hold VISALIA harmless from any liability which it may incur to the United States or to the State of California as a consequence of CONTRACTOR’S failure to pay, when due, all such taxes and obligations.

28. FEDERAL TAX FORMS
Prior to issuing the initial claim under this Agreement, the CONTRACTOR shall submit Federal Tax Form W-9, Request for Taxpayer Identification Number and Certification to the following address:

City of Visalia
ATTN: Transit Manager
425 E. Oak Ave., Suite 301
Visalia, CA 93291
or by FAX to: (559) 713-4815. Unless VISALIA receives a completed Tax Form W-9, payments for services performed under this AGREEMENT shall be subject to federal backup withholding.

29. COMPLIANCE WITH LAWS, RULES, AND REGULATIONS
A. CONTRACTOR shall study and comply with all applicable federal, state and local laws, rules and regulations affecting the CONTRACTOR and his/her work hereunder. CONTRACTOR represents and warrants to VISALIA that CONTRACTOR has and will keep in effect during the term of this Agreement all licenses, permits, qualifications and approvals of whatsoever nature which are legally required for CONTRACTOR to practice Contractor’s profession and to do the work hereunder.

B. CONTRACTOR agrees to abide by the requirements of the Immigration and Control Reform Act pertaining to assu ring that all employees of CONTRACTOR performing any services under this Agreement have a legal right to work in the United States of America, t hat all required documentation of such right to work is inspected, and that INS Form 1-9 (as it may be amended f rom time to time) is completed and on file for each employee. CONTRACTOR shall make the required documentation available upon request to VISALIA for inspection.

30. INTERPRETATION
67

Notwithstanding the fact that one or more provisions of this Agreement may have been drafted by one of the parties to this Agreement, such provisions shall be interpreted as though they were a product of a joint drafting effort and no provisions shall be interpreted against a party on the ground that said party was solely or primarily responsible for drafting the language to be interpreted.

31. National Transit Database (NTD)
CONTRACTOR shall report all required NTD data in the annual NTD reporting system and provide Visalia a copy of each annual report submitted.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and year first above written.

VISALIA:

Signature: _____________________________

Name:

Title:

City of Visalia

CONTRACTOR:

Signature: _____________________________

Name:

Title:

California Vanpool Authority
68

Exhibit A. included in this Agreement as a sample.

Complete Exhibit A. for each individual vanpool and attach to Agreement.

EXHIBIT A. PROJECT TASKS/SERVICES, TIMELINE,

AND BUDGET

WHEREAS, VISALIA has entered into an Agreement dated May 24, 2023, with the California Vanpool Authority d.b.a. CalVans (hereinafter referred to as "Contractor"), for the purpose of the following:

1. Contractor shall perform all activities and work necessary to start and administer a vanpool passenger incentive for Vanpool # s _____, including provision of vanpool services. VISALIA has assigne d the above vanpool identification number upon receiving and approving a vanpool start application filed by Contractor. Vanpool #s ___ (hereinaf ter referred to as "Vanpool"), consists of a minimum of six (6) vanpool passengers travelling from or to Tulare County.

2. Contractor agrees to furnish all labor, materials, equipment, licenses, per mits, fees, and other incidentals necessary to perform and complete, per schedule, in a professional manner, the services described herein.

3. VISALIA will provide a monthl y f inancial incentive for up to $30 0.00 (THREE HUNDRED AND NO/100 DOLLARS) per month to support the operation of Vanpool. The total annual amount of the financial incentive is not to exceed $3,600 (THREE THOUSAND AND SIX HUNDRED AND NO/100 DOLLARS) per vanpool.

4. Each Vanpool will transport employees/agricultural employees/college students between their place of residence and place of employment/c ollege for their daily commute. The financial incentive provided by VISALIA will be used by Contractor to encourage commuters to form or join a Vanpool.

5. Contractor shall provide VISALIA with monthly and Annual Reports.

6. Contractor shall collect daily , and report in the Quarterly Reports , monthly information about the following measurements:
a. Number of riders and full names of riders in vanpool b. Daily distance traveled by vanpool
c. Daily distance traveled by each rider
d. Monthly distance traveled by vanpool
e. Calculated vehicle miles traveled (VMT) produced by vanpool each month.

7. Contractor will request subsid y reimbursements monthly and support each request by a Monthly Report. VISALIA will p rocess the Contractor’s incentive invoice payments at least quarterly.

8. VISALIA will retain the right to request mileage and vanpool operational information after the subsidy completion date.

9. Contractor will secure and report to VISALIA vanpool user fees fr om vanpool riders receiving a financial incentive.

10. Contractor shall affix decal on vanpool denoting “Funded in part by a grant from the City of Visalia .” VISALIA shall supply decals to Contractor.

Contractor will provide photo documentation of vanpool showing decal.

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CONTRACT DELIVERABLES

1. Interim progress report on a monthly basis

2. Annual report at the end of the first project year, if project continues for more than twelve (12) months

3. Final report

VISALIA:

Signature: _____________________________
Name: Title:

City of Visalia (VISALIA)

CONTRACTOR:

Signature: _________________________________
Name: Georgina Landecho Title: Executive Director, California Vanpool Authority End of Exhibit A.
70

EXHIBIT B. DEBARMENT AND SUSPENSION

CERTIFICATION
71

TITLE 49, CODE OF FEDERAL REGULATIONS, PART 29

DEBARMENT AND SUSPENSION CERTIFICATION

1. All perso ns or firms, including Subcontractor(s), must complete this certification and certify, under penalty of perjury, that, except as noted below, he/she or any p erson associated therewith in the ca pacity of owner, partner, director, officer, or manager:

a. Are not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from covered transactions by any federal department or agency;

b. Have not, within the three (3) year period preceding this certification, been convic ted of or had a civil judgment rendered against them for commission of fraud or a criminal offense in connection with obtaining, attempting to obtain , or per forming a public (federal, state, or local) transaction or contract under a public transaction, vio lation of Federal or state antitrust statutes, or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, makin g false statements, or receiving stolen property;

c. Are not presently indicted for or otherwise criminally or civilly charged by a governmental entity (federal, state, or local) with commission of any of the offenses listed in subparagraph (1)(b) of this certification; and

d. Have not, within the t hree (3) year period preceding this certification, had one or more public transactions (Federal, state, and local) terminated for cause or default.

2. If such persons or firms later become aware of any informati on contradicting the statements of paragraph (1), they will promptly provide that information to VISALIA.

If there are any exceptions to this certification, insert the exceptions in the following space.

Exceptions will not necessarily result in de nial of award but will be considered in determin ing bidder responsibility . For any exception noted above, indic ate below to whom it applies, initiating agency, and dates of actions.

The certification in this clause is a material representation of fact relied upon by VISALIA. If it is later determined that the CONTRACTOR knowingly rendered an erroneous certificati on, in addition to remedies available to VISALIA, the Federal Government may pursue available 72

remedies, including but not limited to suspension and/or debarment. The CONTRACTOR agrees to comply with the requirements of 49 CFR 29, Subpart C while this offer is valid and throughout the period of any contract that may arise from this offer. The CONTRACTOR further agrees to include a provision requiring such compliance in its lower tier covered transactions.

Name of Firm

Signature (original signature required)

Date

73

EXHIBIT C. FEDERAL TAX FORM W-9, REQUEST

FOR TAXPAYER IDENTIFICATION NUMBER AND

CERTIFICATION
74 Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 26-0048 Agenda Date: 8/3/2026 Agenda #: 3.

Agenda Item Wording:

Award contract for Fire Station 54 parking lot rehabilitation project - Authorize the City Manager to award the construction contract to Tosted Asphalt, Inc. for the Fire Station 54 parking lot rehabilitation project in the amount of $176,479.84 and appropriate $115,000 from the General Fund.

Agenda Date: 08/03/2026
Prepared by:

Jonathan Frausto, Senior Project Manager, [email protected], 713-4369 Dolores Verduzco, Financial Analyst, [email protected], 713-4540 Dan Griswald, Fire Chief, [email protected], 713-4220 Chris Crawford, City Engineer, [email protected], 713-4331 Jason Huckleberry, Engineering and Building Department Director, [email protected], 713-4495
Department Recommendation:

Staff recommends that the City Council authorize the City Manager to execute a construction contract with Tosted Asphalt, Inc. for RFB 25-26-44 for the Fire Station 54 parking lot rehabilitation project in the amount of $176,479.84 and appropriate an additional $115,000 from the General Fund.

Summary:

This project award will initiate the construction phase for the rehabilitation of the parking lot at Fire Station 54. Improvements include, but are not limited to, pavement resurfacing, pavement rehabilitation, structurally reinforced concrete, and targeted repairs to curb and gutter.

Background Discussion:

Fire Station 54, located at 440 W. Ferguson Avenue, was built in 1995 and serves as the primary work location for four fire department personnel on each shift. Given the age of the station, the parking lot was identified as needing immediate rehabilitation. Site visits, alongside the City Engineer, determined severe surface cracking and pavement failure and severe surface cracking in the areas as shown in attachment 4.

The pavement failure and severe pavement cracking persisted and were observed primarily in areas associated with repeated fire truck ingress and egress movements. In contrast, pavement located outside of these travel paths, including parking stalls and areas serving general vehicular movement, appeared to be in moderate condition. Due to the severity of the pavement condition, the pavement was identified to need immediate replacement.

During the design process, the Engineering Department evaluated two pavement alternatives for the Fire Department. Staff recommended constructing a structurally reinforced concrete pavement section in the areas subject to repeated fire truck turning movements. Compared to a conventional asphalt pavement section, the reinforced concrete pavement is expected to provide an extended Visalia City Council Printed on 7/31/2026Page 1 of 4
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75 File #: 26-0048 Agenda Date: 8/3/2026 Agenda #: 3.
asphalt pavement section, the reinforced concrete pavement is expected to provide an extended service life of approximately 10 years or more, with an anticipated overall service life of 30 to 50 years, or greater, under normal operating conditions. This alternative is also expected to provide improved long-term durability and reduce future maintenance needs in areas subjected to repeated heavy vehicle loading. This recommendation is based on the City's experience maintaining pavement in high-volume, heavy-load locations where repeated turning movements, combined with prolonged periods of elevated summer temperatures, have accelerated the deterioration of conventional asphalt pavement.

Project Impacts:

The Fire Station 54 parking lot rehabilitation project is expected to have minimal impact on fire station operations. Staff will coordinate closely with the Fire Department throughout construction to maintain uninterrupted emergency response capabilities. During construction, the fire apparatus will utilize the primary station exit as the temporary entrance to the facility.

Bidding Process:

Staff advertised RFB 25-26-44 for the parking lot rehabilitation at Fire Station 54 on May 13th 2026, with a bid close date on June 18th 2026. The project was split with the base bid encompassing the engineering recommendation of structurally reinforced concrete pavement as discussed earlier in this report and an alternate bid relating to regular asphalt pavement replacement. Based on the project specifications, the lowest responsive bidder was based on the total bid amount of the base bid plus the alternate bid. The city reserved the right to award the contract for the base bid OR the alternate bid, whichever budget allowed for. At the time of bid opening staff received five (5) bids, below are the three (3) lowest responsive bidders.

Base Bid Alternate Bid
1 Tosted Asphalt Fresno, CA $176,479.84 $148,932.83
2 Dave Christian Construction Fresno, CA $211,119.85 $172,853.60 3 Todd Companies Visalia, CA $227,279.00 $191,857.00
City staff proceeded to review all five (5) bids submitted and the Tosted Asphalt bid proposal was determined to be the lowest responsive bid. The references provided by Tosted Asphalt have been verified. The references provided were from the City of Orange Cove, Tulare Joint Unified School District, Clovis Unified School District, and Madera Unified School District. All of which were called by city staff with favorable responses. As a result, staff recommends that the construction contract be awarded to Tosted Asphalt for the base bid only totaling $176,479.84.

Fiscal Impact:

Budget Shortfall:

The parking lot rehabilitation at Fire Station 54 has a budget shortfall of approximately $115,000.

When the project scope was originally developed in 2022, the engineer's estimate reflected a scope of work that primarily consisted of pavement dig-outs and micro surfacing whereas the final scope, as detailed in this report, is targeted repairs to curb and gutter, structurally reinforced concrete, pavement dig outs, and micro surfacing.

Visalia City Council Printed on 7/31/2026Page 2 of 4
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76 File #: 26-0048 Agenda Date: 8/3/2026 Agenda #: 3.

To reiterate, the factors contributing to this shortfall are a change in scope and an increase in construction costs. Instead of the project scope consisting primarily of dig outs in the areas of ingress and egress movements, it has been changed to dig outs in combination with a structurally reinforced concrete pavement section. Lastly, construction costs have seen a significant rise since the year 2022 when this project was originally estimated. From January of 2021 to January of 2025, the California Construction Cost Index shows an increase of approximately 40%.

Budget Overview:

The parking lot rehabilitation at Fire Station 54 is funded by the General Fund.

Parking Lot Rehabilitation at Fire Station 54 (CP0544)
Project Funding Source
General Fund (Fund 001) $ 150,000
Total Project Funding $ 150,000
Estimated Project Costs
Project Management (Project Design & Management)$ 15,000 Construction $ 176,479.84
Construction Contingency (~15.0%) $ 26,500
Construction Management (Staff Time) $ 10,000
Construction Services (Inspection) $ 5,000
Construction Services (Material Testing) $ 25,000
Construction Services (Construction Staking)$ 5,000 Total Estimated Project Costs $ 262,979.84
Surplus (Deficit) ($ 112,979.84)
Round to $ 115,000.00
Additional appropriation from the General Fund$ 115,000.00 Due to the above-identified budget deficit, staff recommends an additional appropriation of $115,000 from the General Fund to the parking lot rehabilitation project at Fire Station 54.

Prior Council Action:

None
Recommended Motion (and Alternative Motions if expected):

I move to authorize the City Manager to execute a construction contract with Tosted Asphalt for RFB Visalia City Council Printed on 7/31/2026Page 3 of 4
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77 File #: 26-0048 Agenda Date: 8/3/2026 Agenda #: 3.

I move to authorize the City Manager to execute a construction contract with Tosted Asphalt for RFB 25-26-44 for parking lot rehabilitation at Fire Station 54 in the amount of $176,479.84 and authorize the appropriation of $115,000 from the General Fund.

CEQA Review: Project is categorically exempt.

Deadline for Action: 8/3/2026
Attachments:

1. Tosted Asphalt construction ownership disclosure form

2. Project location map

3. Tosted Asphalt draft contract

4. Site Pictures
Strategic Goal: Indicates which City Strategic Goal(s) this item supports. Check all that apply. ☐
Economic
Vitality
☐
Organizational
Excellence
☐
Fiscal
Strength
☒
Infrastructure &
Growth
☐
Quality of
Life
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78 79
80 CONTRACT

CITY OF VISALIA

STATE OF CALIFORNIA

This Contract for the construction of the FIRE STATION 54 PARKING LOT REHAB Project, is made between the City of Visalia, (hereinafter “the City”), and _______________________________________, (hereinafter referred to as Contractor) both parties having authority to enter into this Contract do agree to the following:

ARTICLE I - For and in consideration of the payments hereinafter mentioned to be made by the City, and under the conditions expressed in this Contract and Contract Documents (as those terms are defined in City of Visalia Standard Specifications), including the bonds submitted with this Contract, Contractor agrees at his own cost and expense, to do all the work and furnish all the materials necessary to construct and complete in a good, workmanlike, and substantial manner the FIRE STATION 54 PARKING LOT REHAB Project, as a fully operational and functional facility for the intended purpose in accordance with the Contract Documents, and in accordance with the reference documents listed in the Contract Documents, which are also made a part hereof.

Said work to be done is shown upon the following plans:

RFB No.: 25-26-44
Project Name: FIRE STATION 54 PARKING LOT REHAB
CIP: 1010-72000/CP0544-999

which said plans are hereby made a part of this contract.

ARTICLE II - Contractor agrees to receive and accept the following prices as full compensation for furnishing all materials and for doing all the work described in this Contract; also for all loss or damage arising out of the nature of the work aforesaid, or from the action of the elements, or from any unforeseen difficulties or obstructions which may arise or be encountered in the prosecution of the work until its acceptance by the City of Visalia and for all risks of every description connected with the work; also for all expenses incurred by or in consequence of the suspension or discontinuance of work and for well and faithfully completing the work, and the whole thereof, in the manner and according to the Contract Documents, and requirements of the Engineer under them, to wit:

81 82

83 84
ARTICLE III - Contractor hereby agrees to indemnify and hold City and its officers, agents, employees and assigns, harmless from any liability imposed for injury (as defined by Government code 810.8), whether arising before or after completion of work hereunder, or in any manner directly or indirectly caused, occasioned or contributed to, or claimed to be caused, occasioned or contributed to, in whole or in part, by reason of any act or omission, including strict liability or negligence of Contractor, or of anyone acting under Contractor's direction or control or on its behalf, in connection with or incident to or arising out of the performance of this contract.

It is the intent of the parties that Contractor will indemnify, defend, and hold harmless City and its officers, agents, employees, and assigns, from any and all claims, demands, costs, suits or actions as set forth above regardless of the existence of passive concurrent negligence, on the part of the City or anyone acting under its direction or control or on its behalf. It is further the intent of the parties that this indemnification required is not intended to relieve City from liability for the active negligence of City, its officers, agency and employees.

The Contractor shall continuously protect City property, including work under construction, from damage, loss, or liability of any kind to persons or property arising in connection with the contract, direct or indirect, including that arising from rainfall, flood waters, and other action of the elements and all acts of third parties.

This indemnity and hold harmless provision, insofar as it may be adjudged to be against public policy, shall be void and unenforceable only to the minimum extent necessary so that the remaining terms of this indemnity and hold harmless provision may be within public policy and enforceable.

In an emergency affecting the safety of life or limb, work site, or any property, the Contractor is hereby permitted and directed to act at their discretion to prevent such threatened loss of injury, and in the event any instructions are given by the City of Visalia in any emergency, the Contractor shall unconditionally comply therewith.

With respect to the performance of work under this agreement, the Contractor shall maintain and shall require all of its subcontractors to maintain insurance as described below.

Worker's Compensation insurance with statutory limits, and employer's liability insurance with limits of not less than $1,000,000 per accident.

Commercial General Liability insurance with a combined single limit of not less than $1,000,000 per occurrence. Such insurance shall include products/completed operations liability, owner's and Contractor's protective, blanket contractual liability, personal injury liability, broad form property damage coverage and explosion, collapse and underground hazard coverage. Such insurance shall (a) name City, its appointed and elected officials, officers, employees and agents as insureds; and (b) be primary with respect to any 85 insurance or self-insurance programs maintained by the City; and (c) contain Standard cross liability provisions. Such additional insured endorsement maintained by Contractor and its subcontractors shall not be required to provide coverage for City for the active negligence of City.

Commercial Automobile Liability insurance with a combined single limit of not less than $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.

Contractor shall furnish properly executed certificates of insurance to City prior to commencement of work under this agreement, such certificates shall:

a. Clearly evidence all coverage required above, including specific evidence of a separate endorsement naming the City as an insured;

b. Indicate whether coverage provided is on a claims made or occurrence basis; and

c. Provide that such insurance shall not be materially changed, terminated, or allowed to expire except on 30-days prior written notice to City’s Purchasing Division, Attention:

Purchasing
707 W. Acequia Avenue
Visalia, CA 93291.

Such insurance shall be maintained from the time work first commences until completion of the work under this Agreement if an occurrence policy form is used. If a claims made policy is used, coverage shall be maintained during the contract term and for a period extending 5 years beyond the contract date. Contractor shall replace such certificates for policies expiring prior to completion of work under this agreement and shall continue to furnish certificates 4 years beyond the contract term, when Contractor has a claims made form(s). If Contractor, for any reason, fails to maintain insurance coverage which is required pursuant to this agreement, the same shall be deemed a material breach of contract. City, at its sole option, may terminate this agreement and/or obtain damages from the Contractor resulting from said breach.

Alternatively, City may purchase such required insurance coverage, and without further notice to Contractor, City may deduct from sums due to Contractor any premium costs advanced by City for such insurance.

This insuring provision, insofar as it may be adjudged to be against public policy or in violation of Insurance Code Section 11580.04, shall be void and unenforceable only to the minimum extent necessary so that the remaining terms of the insuring provisions herein may be within public policy and enforceable. 86 ARTICLE IV - It is further expressly agreed by and between the City and the Contractor that should there be any conflict between the terms of this instrument and the bid or proposal of said Contractor, then this instrument shall control and nothing herein shall be considered as an acceptance of the said terms of said proposal conflicting with this instrument.

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.

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, the parties have executed this agreement as of the date opposite their respective signatures.

CITY OF VISALIA

____________________________ _______
City Manager Date

CONTRACTOR

______________________________________
By: Authorized Agent Date

______________________________________
Print Name, Title
APPROVED AS TO FORM:

____________________________ _______
City Attorney Date

____________________________ _______
Risk Manager Date

____________________________ _______
Project Manager Date

87 88
Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 26-0052 Agenda Date: 8/3/2026 Agenda #: 4.

Agenda Item Wording:

Conditional acceptance of Federal Aviation Administration grant funds, with appropriation upon award - Authorize the conditional acceptance of a Federal Aviation Administration Airport Infrastructure Grant in the amount of $201,020 for the design phase of the Tiedown Apron A3 Reconstruction Project at the Visalia Municipal Airport, and authorize the appropriation of grant funds upon award and the local match of $10,580 from the Airport Fund.

Agenda Date: 8/3/2026
Prepared by:

Jody Miller, Airport Manager, (559)713-4282, [email protected] John Lollis, Assistant City Manager, (559)713-4323, [email protected] Department Recommendation:

Staff recommends that the City Council authorize the City Manager to conditionally accept a Federal Aviation Administration (FAA) Airport Infrastructure Grant (AIG) in the amount $201,020 towards approved CIP project for the design phase of the Tiedown Apron A3 Reconstruction Project at the Visalia Municipal Airport, and appropriate the grant funds upon award and the local match of $10,580 from the Airport Fund (Fund 411).

Background Discussion:

Maintaining surface movement areas is vital to the safe and expeditious movement of air traffic at any airport and is a requirement to ensure future FAA funding. This design phase of the proposed Tiedown Apron A3 Project at the Visalia Municipal Airport will ensure that the Airport remains on track for the planned future construction phase of the project which would allow completion prior to the age of the current surface causing any issues in compliance with FAA regulations.

New FAA policy provides airports with a brief two (2) week time period to accept any grant funding offers, which is the necessity for staff to preemptively present this item to the Council seeking conditional authorization to accept the grant funding offer within the grant acceptance deadline. The conditional authorization to accept the grant is contingent upon the grant offer being consistent with the terms found within this report. Should there be any changes to the terms or conditions of the FAA grant funding offer, staff would again present this item to the Council for consideration of approval prior to requesting a new FAA grant funding offer. Once the grant has been formally offered and accepted, staff will return to Council to authorize the award of the project.

Fiscal Impact:

Originally this project was scheduled and approved for Fiscal Year 2027-28 in the amount of $262,000 (CP0845), however, the FAA has advanced funding to fill gaps in its fiscal programming.

The project total cost has been reduced from $262,000 to $211,600 which was confirmed by the FAA Visalia City Council Printed on 7/31/2026Page 1 of 2
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The project total cost has been reduced from $262,000 to $211,600 which was confirmed by the FAA and an independent design firm. The Airport would receive $201,020 in FAA grant funds to fund the design phase of the upcoming Tiedown Apron A3 Reconstruction Project. Total project cost of the design phase is $211,600, which the remaining $10,580 in project funding from local Airport funds.

Prior Council Action: N/A
Alternatives:

City Council could not authorize the acceptance of the FAA grant funds and Airport staff would explore other avenues to fund the design phase of the Tiedown Apron A3 reconstruction project.

Recommended Motion (and Alternative Motions if expected):

I move to authorize the City Manager to conditionally accept a Federal Aviation Administration (FAA) Airport Infrastructure Grant (AIG) in the amount of $201,020 for the design phase of the Tiedown Apron A3 Reconstruction Project at the Visalia Municipal Airport, and authorize the appropriation of grant funds upon award and the local match of $10,580 from the Airport Fund (411).

Environmental Assessment Status: N/A
CEQA Review: N/A
Deadline for Action: 8/3/2026
Attachments:

Application for Federal Assistance
Summary of Project Costs
Strategic Goal: Indicates which City Strategic Goal(s) this item supports. Check all that apply. ☐
Economic
Vitality
☐
Organizational
Excellence
☐
Fiscal
Strength
☒
Infrastructure &
Growth
☐
Quality of
Life
Visalia City Council Printed on 7/31/2026Page 2 of 2
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Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 26-0061 Agenda Date: 8/3/2026 Agenda #: 5.

Agenda Item Wording:

Award contract and appropriate funds for St. John’sRiver Trail landscaping - Authorize the City Manager to award the construction contract to Gowin Green Landscaping for the St. John’sRiver Trail landscaping east of Dinuba Boulevard project in the amount of $287,826; and authorize the additional appropriation of $255,000 from the Waterways Capital Fund (Fund 261).

Agenda Date: 08/03/2026
Prepared by:

Jonathan Frausto, Senior Project Manager, [email protected], 713-4369 Dolores Verduzco, Financial Analyst, [email protected], 713-4540 Azalia Chavez, Financial Analyst, [email protected], 713-4316 Ivan Nicar, Parks and Facilities Manager, [email protected], 713-4564 Chris Crawford, City Engineer, [email protected], 713-4331 Jason Huckleberry, Engineering and Building Department Director, [email protected], 713-4495
Department Recommendation:

Staff recommends that the City Council authorize the City Manager to execute a construction contract with Gowin Green Landscaping for the St. John’sRiver Trail landscaping east of Dinuba Boulevard project in the amount of $287.826 and authorize the additional appropriation of $250,000 from the Waterways Capital Fund (Fund 261).

Summary:

This project award will initiate the construction phase for the St. John’sRiver Trail landscaping east of Dinuba Boulevard. Improvements include, but are not limited to, mulch, compost, trees, and shrubs.

Background Discussion:

The St. John’sRiver Trail, located just east of Dinuba Boulevard along the St. John’sRiver, is an approximately one-mile-long Class I multi-use trail constructed along the riverbank. The project included several trail amenities, including lighting, benches, trash receptacles, and dog waste dispensers.

The trail serves as an important connection within the City’sbroader pedestrian and bicycle network.

At its southern end, the St. John’sRiver Trail connects to the pedestrian crossing project at Riggin Avenue and the future Santa Fe Street intersection. The signalized pedestrian crossing at Riggin Avenue provides a connection between the Santa Fe Trail, which extends from Houston Avenue to Riggin Avenue, and the St. John’sRiver Trail. The Santa Fe Trail will also connect to a future Class IV cycle track extending from Tulare Avenue to Houston Avenue, ultimately creating a continuous north-south pedestrian and bicycle corridor. At the Dinuba Boulevard end, the St. John’sRiver Trail connects to the St. John’s River riparian corridor project, completing the connection to Riverway Visalia City Council Printed on 7/31/2026Page 1 of 4
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File #: 26-0061 Agenda Date: 8/3/2026 Agenda #: 5.

Sports Park.

Landscape and irrigation improvements were not included in the original construction contract for the St. John’sRiver Trail. Irrigation infrastructure was subsequently installed; however, the system is not currently in use, and landscaping has not yet been installed.

The proposed project will complete the remaining landscape improvements along the trail, providing the final improvements necessary to complete the original vision for the St. John’s River Trail.

Project Impacts:

The Project specifications require that pedestrian and bicycle access along the St. John’sRiver Trail be maintained throughout construction. The contractor will be required to perform the landscape improvements in a manner that maintains continuous trail circulation and minimizes impacts to pedestrians and bicyclists.

Bidding Process:

Staff advertised RFB 25-26-42 for the St. John’sRiver Trail landscaping east of Dinuba Boulevard on March 13th, 2026, with a bid close date on April 14, 2026.

The project consists solely of landscape improvements that will be required to be planted to an existing irrigation system installed under a previous construction contract. Due to the complexity of the existing irrigation system and unknown field conditions associated with tying into infrastructure installed by a previous contractor, two mandatory pre-bid meetings were held at the project site.

These meetings provided prospective bidders an opportunity to become familiar with the existing site conditions, review the irrigation system, and ask questions regarding the proposed work prior to submitting their bids. The mandatory pre-bid meetings were held on Thursday, March 26, 2026, and Friday, March 27, 2026. Two prospective bidders attended the meetings and are listed below. 1 Brightview Landscaping Bakersfield, CA
2 Gowin Green Landscaping Tulare, CA
At the time of bid opening staff did not receive any bids.

Quote Process:

Following an unsuccessful bidding process staff proceeded to directly solicit the contractors that attended the pre-bid meetings.

Based on the quote review and contractor verification, staff recommends awarding the construction contract to Gowin Green Landscaping for the landscaping at St. John’sRiver Trail east of Dinuba Boulevard (3010/72000/CP8131-999) in the amount of $287,826.

Fiscal Impact:

Budget Shortfall:

The project has a budget shortfall of approximately $255,000. This shortfall can be contributed to the rise in construction costs since the year 2018 when this project was originally estimated. From January of 2021 to January of 2025, the California Construction Cost Index shows an increase of Visalia City Council Printed on 7/31/2026Page 2 of 4
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File #: 26-0061 Agenda Date: 8/3/2026 Agenda #: 5.

January of 2021 to January of 2025, the California Construction Cost Index shows an increase of approximately 40%.

Budget Overview
The Landscaping at St. John’s River Trail East of Dinuba Boulevard is multi-funded using the Waterways Capital Fund (Fund 261) and a State Grant. A budget breakdown is provided in the table below. The table below reflects the remaining balance in the project budget to complete landscaping at the St. John’s River Trail East of Dinuba Boulevard.

Landscaping at St. John’s River Trail east of Dinuba Boulevard(CP8131) Project Funding Source
Waterways Capital Fund (Fund 261) remaining balance$ 32,243 State Grant (Fund 281) remaining balance$ 49,152
Total Project Funding $ 81,395
Estimated Project Costs
Construction $ 287,826
Construction Contingency (~10.0%) $ 30,000
Construction Management (Staff Time) $ 5,000
Construction Management (Consultant Time)$ 5,000 Construction Services (Inspection) $ 5,000
Total Estimated Project Costs $ 332,826
Surplus (Deficit) ($ 251,431)
Round to $ 255,000
Appropriate funds from Waterways Capital Fund (261)$ 255,000 Due to the above-identified budget deficit, staff recommends the additional appropriation of $255,000 from the Waterways Capital Fund to the Landscaping at St. John’s River Trail east of Dinuba Boulevard project.

Prior Council Action:

None
Recommended Motion (and Alternative Motions if expected):

I move to authorize the City Manager to execute a construction contract with Gowin Green Landscaping for the landscaping at St. John’sRiver Trail east of Dinuba Boulevard in the amount of $287,826 and authorize the additional appropriation of $255,000 from the Waterways Capital Fund.

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File #: 26-0061 Agenda Date: 8/3/2026 Agenda #: 5.

CEQA Review: Project falls under the original environmental permit.

Deadline for Action: 8/3/2026
Attachments:

1. Gowing Green Landscaping ownership disclosure form

2. Project location map

3. Gowin Green Landscaping draft contract
Strategic Goal: Indicates which City Strategic Goal(s) this item supports. Check all that apply. ☒
Economic
Vitality
☐
Organizational
Excellence
☐
Fiscal
Strength
☒
Infrastructure &
Growth
☒
Quality of
Life
Visalia City Council Printed on 7/31/2026Page 4 of 4
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SUBMIT WITH BID

DISCLOSURE STATEMENTS
The following disclosure and statement apply to the Bidder/Proposer/Contractor/ConsultantN endor/Supplier or Company:

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

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

OWNERSHIP DISCLOSURE
Name of Bidder/Proposer/Contractor/Consultant/Vendor/Supplier or Company j§;?O W 7~11-\ AVf. T~rr. 61! C/32-74
List the names of all principals, partners, and/or trustees. For corporations, provide names of officers, directors and all stockholders o ning more than 10% equity interest in corporation:
~ '-CEO

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 $500 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/govemment/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:¼ 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. (1 .., ~
'OlliJ\r\ a.=eeo
Print or Type Name of Bidder/Proposer/Contractor/Consultant/SupplierN ender/Company CM(JA__ -~ - ~ Chloe ~t,01'n
Signature of Company Authorized Individual Print or Type Name of Authorized Individual RFB No.: 25-26-42
LANDSCAPING AT ST. JOHN'S RIVER TRAIL EAST OF DINUBA BL VD. 15 148
149

CONTRACT

CITY OF VISALIA

STATE OF CALIFORNIA

This Contract for the construction of the LANDSCAPING AT ST. JOHN’S RIVER TRAIL, EAST OF DINUBA BOULEVARD Project, is made between the City of Visalia, (hereinafter “the City”), and _______________________________________, (hereinafter referred to as Contractor) both parties having authority to enter into this Contract do agree to the following:

ARTICLE I - For and in consideration of the payments hereinafter mentioned to be made by the City, and under the conditions expressed in this Contract and Contract Documents (as those terms are defined in City of Visalia Standard Specifications), including the bonds submitted with this Contract, Contractor agrees at his own cost and expense, to do all the work and furnish all the materials necessary to construct and complete in a good, workmanlike, and substantial manner the LANDSCAPING AT ST. JOHN’S RIVER TRAIL, EAST OF DINUBA BOULEVARD Project, as a fully operational and functional facility for the intended purpose in accordance with the Contract Documents, and in accordance with the reference documents listed in the Contract Documents, which are also made a part hereof.

Said work to be done is shown upon the following plans:

RFB No.: 25-26-42
Project Name: LANDSCAPING AT ST. JOHN’S RIVER TRAIL

EAST OF DINUBA BOULEVARD
CIP: 3010-72000/CP8131-999

which said plans are hereby made a part of this contract.

ARTICLE II - Contractor agrees to receive and accept the following prices as full compensation for furnishing all materials and for doing all the work described in this Contract; also for all loss or damage arising out of the nature of the work aforesaid, or from the action of the elements, or from any unforeseen difficulties or obstructions which may arise or be encountered in the prosecution of the work until its acceptance by the City of Visalia and for all risks of every description connected with the work; also for all expenses incurred by or in consequence of the suspension or discontinuance of work and for well and faithfully completing the work, and the whole thereof, in the manner and according to the Contract Documents, and requirements of the Engineer under them, to wit:

150

151

ARTICLE III - Contractor hereby agrees to indemnify and hold City and its officers, agents, employees and assigns, harmless from any liability imposed for injury (as defined by Government code 810.8), whether arising before or after completion of work hereunder, or in any manner directly or indirectly caused, occasioned or contributed to, or claimed to be caused, occasioned or contributed to, in whole or in part, by reason of any act or omission, including strict liability or negligence of Contractor, or of anyone acting under Contractor's direction or control or on its behalf, in connection with or incident to or arising out of the performance of this contract.

It is the intent of the parties that Contractor will indemnify, defend, and hold harmless City and its officers, agents, employees, and assigns, from any and all claims, demands, costs, suits or actions as set forth above regardless of the existence of passive concurrent negligence, on the part of the City or anyone acting under its direction or control or on its behalf. It is further the intent of the parties that this indemnification required is not intended to relieve City from liability for the active negligence of City, its officers, agency and employees.

The Contractor shall continuously protect City property, including work under construction, from damage, loss, or liability of any kind to persons or property arising in connection with the contract, direct or indirect, including that arising from rainfall, flood waters, and other action of the elements and all acts of third parties.

This indemnity and hold harmless provision, insofar as it may be adjudged to be against public policy, shall be void and unenforceable only to the minimum extent necessary so that the remaining terms of this indemnity and hold harmless provision may be within public policy and enforceable.

In an emergency affecting the safety of life or limb, work site, or any property, the Contractor is hereby permitted and directed to act at their discretion to prevent such threatened loss of injury, and in the event any instructions are given by the City of Visalia in any emergency, the Contractor shall unconditionally comply therewith.

With respect to the performance of work under this agreement, the Contractor shall maintain and shall require all of its subcontractors to maintain insurance as described below.

Worker's Compensation insurance with statutory limits, and employer's liability insurance with limits of not less than $1,000,000 per accident.

Commercial General Liability insurance with a combined single limit of not less than $1,000,000 per occurrence. Such insurance shall include products/completed operations liability, owner's and Contractor's protective, blanket contractual liability, personal injury liability, broad form property damage coverage and explosion, collapse and underground hazard coverage. Such insurance shall (a) name City, its appointed and elected officials, officers, employees and agents as insureds; and (b) be primary with respect to any 152

insurance or self-insurance programs maintained by the City; and (c) contain Standard cross liability provisions. Such additional insured endorsement maintained by Contractor and its subcontractors shall not be required to provide coverage for City for the active negligence of City.

Commercial Automobile Liability insurance with a combined single limit of not less than $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.

Contractor shall furnish properly executed certificates of insurance to City prior to commencement of work under this agreement, such certificates shall:

a. Clearly evidence all coverage required above, including specific evidence of a separate endorsement naming the City as an insured;

b. Indicate whether coverage provided is on a claims made or occurrence basis; and

c. Provide that such insurance shall not be materially changed, terminated, or allowed to expire except on 30-days prior written notice to City’s Purchasing Division, Attention:

Purchasing
707 W. Acequia Avenue
Visalia, CA 93291.

Such insurance shall be maintained from the time work first commences until completion of the work under this Agreement if an occurrence policy form is used. If a claims made policy is used, coverage shall be maintained during the contract term and for a period extending 5 years beyond the contract date. Contractor shall replace such certificates for policies expiring prior to completion of work under this agreement and shall continue to furnish certificates 4 years beyond the contract term, when Contractor has a claims made form(s). If Contractor, for any reason, fails to maintain insurance coverage which is required pursuant to this agreement, the same shall be deemed a material breach of contract. City, at its sole option, may terminate this agreement and/or obtain damages from the Contractor resulting from said breach.

Alternatively, City may purchase such required insurance coverage, and without further notice to Contractor, City may deduct from sums due to Contractor any premium costs advanced by City for such insurance.

This insuring provision, insofar as it may be adjudged to be against public policy or in violation of Insurance Code Section 11580.04, shall be void and unenforceable only to the minimum extent necessary so that the remaining terms of the insuring provisions herein may be within public policy and enforceable. 153

ARTICLE IV - It is further expressly agreed by and between the City and the Contractor that should there be any conflict between the terms of this instrument and the bid or proposal of said Contractor, then this instrument shall control and nothing herein shall be considered as an acceptance of the said terms of said proposal conflicting with this instrument.

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

M. Executive Order N-6-22 – Russia Sanctions
On March 4, 2022, Governor Gavin Newsom issued Executive Order N-6-22 (the EO) regarding Economic Sanctions against Russia and Russian entities and individuals. “Economic Sanctions” refers to sanctions imposed by the U.S. government in response to Russia’s actions in Ukraine, as well as any sanctions imposed under state law. The EO directs state agencies to terminate contracts with, and to refrain from entering any new contracts with, individuals or entities that are determined to be a target of Economic Sanctions.

Accordingly, should the State determine Contractor is a target of Economic Sanctions or is conducting prohibited transactions with sanctioned individuals or entities, that shall be grounds for termination of this agreement. The State shall provide Contractor advance written notice of such termination, allowing Contractor at least 30 calendar days to provide a written response. Termination shall be at the sole discretion of the State.

IN WITNESS WHEREOF, the parties have executed this agreement as of the date opposite their respective signatures.

CITY OF VISALIA

____________________________ _______
City Manager Date

CONTRACTOR

______________________________________
By: Authorized Agent Date

______________________________________
Print Name, Title
APPROVED AS TO FORM:

____________________________ _______
City Attorney Date

____________________________ _______
Risk Manager Date

____________________________ _______
Project Manager Date

154
Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 26-0064 Agenda Date: 8/3/2026 Agenda #: 6.

Agenda Item Wording:

Ordinance adoption authorizing the City Manager to award a contract and approve a long- term lease agreement for 408 acres of open ground to Correia Custom Farming Inc. - Second reading and adoption of Ordinance No. 2026-08 authorizing the City Manager to award a contract and approve a long-term lease agreement for 408 acres of open ground to Correia Custom Farming Inc.

Agenda Date: 08/03/2026
Prepared by: Rehana Lustyan, Senior Project Manager | [email protected] | 559-713- 4176 Nick Bartsch, Public Works Director | [email protected] | 559-713-4428 Department Recommendation: Staff recommends that the City Council conduct a second reading and adopt Ordinance No. 2026-08, authorizing the City Manager to award a contract and approve the Long-Term Agricultural Ground Lease Agreement with Correia Custom Farming Inc. for the lease and agricultural management of approximately 408 acres of City-owned open ground farmland, substantially as set forth in Attachment 2 - Long-Term Agricultural Ground Lease Agreement.

Summary:

The City issued Request for Proposals (RFP 25-26-15) for the long-term lease and agricultural management of approximately 408 acres of City-owned open ground near Highway 99 and Highway 198. Correia Custom Farming Inc. submitted the only proposal and was determined to be qualified based on agricultural experience, knowledge of the property, and demonstrated ability to manage SGMA-compliant farming and surface-water recharge operations.

Staff negotiated a long-term lease that provides a five-year initial term with up to five one-year renewal options, annual rent of $25 per acre, continued agricultural stewardship, groundwater- recharge opportunities, and a City allocation equal to ten percent (10%) of qualifying flood-release and storage-release surface water applied to the property. The agreement prohibits groundwater pumping, relies solely on available surface water for irrigation and recharge, and assigns ongoing maintenance and infrastructure responsibilities to the lessee.

Correia Custom Farming Inc. previously entered into a short-term lease in December 2025 and has maintained continuous stewardship of the property under that agreement. The short-term lease is being temporarily extended at no additional cost to the City until Council considers the long-term agreement. The complete lease terms and conditions are provided in Attachment 2 - Long-Term Agricultural Ground Lease Agreement.

Public Hearing Requirement:

This item requires ordinance adoption because the long-term lease exceeds five (5) years in duration. Pursuant to Visalia Municipal Code Section 16, “nolease shall be made for a period longer than five years except by ordinance adopted by the Council.” Adoption of Ordinance No. 2026-08 Visalia City Council Printed on 7/31/2026Page 1 of 5
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than five years except by ordinance adopted by the Council.” Adoption of Ordinance No. 2026-08 constitutes the final Council action required for the lease to take effect. Once adopted at this second reading, the ordinance will become effective thirty (30) days hereafter.

On July 20, 2026, the City Council held a Public Hearing and conducted the First Reading of Ordinance No. 2026-08, which authorizes the City Manager to execute a long-term agricultural ground lease for approximately 408 acres of City-owned open ground; this consent item was approved by Council.

Background Discussion:

City-Owned Agricultural Lands
The City of Visalia owns and manages several agricultural properties surrounding the Water Reclamation Facility (WRF), including open ground, pecan orchards, and other historically farmed areas. As part of the City’sbroader agricultural land portfolio, the 408-acre open ground parcel has been maintained in active agricultural use to support land stewardship, weed and dust control, and compatibility with WRF operations. SGMA restrictions and evolving water-management conditions have increasingly influenced how these properties can be operated, particularly with respect to groundwater pumping and surface-water availability.

Short-Term Lease (December 2025 - July 2026)
While preparing the long-term RFP, staff conducted an informal solicitation of short-term proposals from local agricultural operators to maintain the property, control weeds and dust, and avoid compliance issues or field degradation. Correia Custom Farming Inc. submitted the most responsive short-term proposal and entered into a short-term Ground Lease Agreement with the City in December 2025.

During performance of the short-term lease, the lessee successfully maintained the property in accordance with the agreement, including wheat production, irrigation infrastructure maintenance, compliance with the prohibition on groundwater pumping, and proper management of authorized surface-water use. The short-term lease provided both the City, and the operator, an opportunity to evaluate long-term operational feasibility under current SGMA requirements while ensuring the property remained in productive agricultural condition.

Under the agreement, the lessee farmed wheat on approximately 405.82 farmable acres, excluding

2.18 acres encumbered by an SCE easement. The lessee paid the City $10,145.50, based on the contractually required rate of $25 per acre. The lease included strict limitations on water use: no groundwater pumping was allowed, surface water could only be applied with prior written City authorization, and City booster pumps were excluded from use unless expressly approved. The lessee maintained all irrigation infrastructure, performed shredding and tilling of crop residue, and kept the land in proper agricultural condition consistent with State and County requirements.

The short-term lease was set to expire on July 1, 2026. To prevent the land from being left without an authorized operator, and to avoid City-incurred weed, dust, and fire-risk mitigation costs, staff recommended a brief extension of the short-term lease at no cost to the City. Because the original lease required full payment up front rather than prorated rent, extending the end date did not change the financial terms or leave any revenue unrealized. During the extension, the operator continued preparing the land for fall/winter cropping at their own risk should Council decline approval of the subject long-term lease. This interim extension ensured continuous maintenance and stabilization of Visalia City Council Printed on 7/31/2026Page 2 of 5
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subject long-term lease. This interim extension ensured continuous maintenance and stabilization of the property at no financial impact to the City.

The short-term lease provided critical operational continuity, prevented land degradation, and allowed both the City and the operator to evaluate long-term feasibility of SGMA-compliant operations.

Long-Term RFP and Negotiated Lease Terms
RFP 25-26-15 sought proposals for a multi-year lease that would:
· Maintain productive agricultural use
· Support groundwater sustainability through managed recharge · Ensure year-round land stewardship
· Comply with SGMA, ILRP, and local water-district rules · Minimize City maintenance obligations
· Generate stable lease revenue
Correia Custom Farming Inc. submitted the only proposal but demonstrated substantial qualifications, including three decades of local farming experience, prior experience farming the site under the short -term lease, extensive involvement in regional water management (including leadership roles within the Mid-Kaweah Groundwater Sustainability Agency and the Persian-Watson Ditch Company), and demonstrated ability to coordinate effectively with the Tulare Irrigation District on surface-water and recharge operations.

Following receipt of the proposal, City staff conducted multiple coordination meetings with the lessee, and representatives from the Tulare Irrigation District (TID), and the Mid-Kaweah Groundwater Sustainability Agency (MKGSA) to refine operational responsibilities for surface-water delivery, recharge operations, water accounting, dashboard administration, SGMA compliance, and infrastructure feasibility. These discussions confirmed that the proposed lease structure is operationally feasible and can be implemented consistently with applicable agency requirements.

Reclaimed water is not available under this agreement.

The negotiated lease includes a five-year initial term with five one-year renewal options, $25 per-acre annual rent, flexibility for recharge operations, and full lessee responsibility for improvements and long-term stewardship.

While longer-term uses of this property are still under evaluation, the proposed lease provides some revenue, but more importantly, provides for the ongoing maintenance of the property, without utilizing groundwater.

Fiscal Impact including annual maintenance and operating costs:

Lease Revenue: 408 acres × $25/acre = $10,200 annually projected revenue over full 10-year term (if all renewal years exercised): $102,000 Revenue will be recognized within division 4344 (WWTP Farm)
Water-Credit Value: The City receives 10% of qualifying flood-release surface water applied to the property, which may support SGMA compliance, groundwater recharge, and long-term water-portfolio resilience.

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Note: The interim extension of the short-term lease has no fiscal impact.

Prior Council Action:

December 18, 2023 - Council directed staff to evaluate long-term uses for City-owned agricultural lands.

July 20, 2026 - Council conducted the Public Hearing and First Reading of Ordinance No. 2026-08 and the consent item was approved.

Alternatives: Alternative 1 City fallowing/maintenance scenario (not recommended) Under a City-maintained scenario, the approximately 408-acre property would require ongoing weed abatement, field disking, dust control, inspections, and contract administration to remain in compliance with applicable State, County, and San Joaquin Valley Air District requirements. Based on recent Central Valley agricultural operating costs and customary maintenance practices, annual City costs are estimated as follows:

Cost Item

Basis

Estimated Annual Cost
Disking (3 passes)

Approximately $20–30/acre/pass

$30,000
Dust Control / Rule 4550
Compliance

Conservation management practices
and dust suppression

$12,000

Weed & Pest Abatement

Mechanical and chemical vegetation
control

$10,000

Staff Oversight & Contract
Administration

Inspections, procurement, compliance
monitoring

$7,500

Total Estimated Annual Cost

$59,500

In addition to these direct costs, the City would forgo the opportunity to receive potential groundwater recharge credits associated with the proposed lease, reducing future flexibility in meeting SGMA- related groundwater sustainability objectives. Executing the proposed lease avoids these maintenance expenditures while generating approximately $10,200 in annual lease revenue, resulting in an estimated positive annual fiscal impact of approximately $69,700, exclusive of the long -term benefit of groundwater recharge credits. Recent updates to the San Joaquin Valley Air District's Rule 4550 continue to emphasize conservation management practices to reduce dust emissions from agricultural operations, reinforcing the need for active management of fallowed agricultural lands.

Alternative 2 - Reissue RFP (not recommended)
Reissuing the RFP is unlikely to attract additional proposers, would delay operational continuity, and would require the City to assume full maintenance responsibility as described above.

Recommended Motion (and Alternative Motions if expected):

I move to approve the second reading and adopt Ordinance No. 2026-08, authorizing the City Manager to award a contract and approve the Long-Term Agricultural Ground Lease Agreement with Correia Custom Farming Inc. for the lease and agricultural management of approximately 408 acres of City-owned open ground farmland, substantially in the form presented in Attachment 2.

Environmental Assessment Status: N/A
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File #: 26-0064 Agenda Date: 8/3/2026 Agenda #: 6.

CEQA Review: N/A
Deadline for Action: 08/03/2026
Attachments:

Attachment 1 - Ordinance No. 2026-08 (Second Reading)
Attachment 2- Long-Term Open Ground Lease Agreement (with Exhibits A, D, and E) Attachment 2B - Long-Term Open Ground Lease Agreement - Exhibit B Lessee Proposal Attachment 2C - Long-Term Open Ground Lease Agreement - Exhibit C RFP 25-26-15 and Addendums
Attachment 3 - Open Ground Land Lease Map
Attachment 4 - Consultant Disclosure Form
Strategic Goal: Indicates which City Strategic Goal(s) this item supports. Check all that apply. ☒
Economic
Vitality

☐

Organizational
Excellence

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Fiscal
Strength

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Infrastructure
& Growth

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Quality
of Life

Visalia City Council Printed on 7/31/2026Page 5 of 5
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ORDINANCE NO. 2026-08

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF VISALIA

AUTHORIZING THE CITY MANAGER TO EXECUTE A LONG-TERM

AGRICULTURAL GROUND LEASE AGREEMENT FOR
APPROXIMATELY 408 ACRES OF CITY-OWNED OPEN GROUND
(APNs 118-020-036, 118-020-037, AND 119-010-021)

WHEREAS, the City of Visalia owns approximately 408 acres of open-ground agricultural land located near State Highway 99 and State Highway 198, identified as APNs 118-020-036, 118-020-037, and 119-010-021; and
WHEREAS, the City issued Request for Proposals No. 25-26-15 seeking qualified agricultural operators to lease, farm, and conduct SGMA-aligned recharge operations on said property; and
WHEREAS, Correia Custom Farming Inc. submitted a responsive and qualified proposal based on its agricultural experience, prior operation of the property, and demonstrated ability to coordinate with the Tulare Irrigation District and Mid-Kaweah Groundwater Sustainability Agency; and
WHEREAS, the negotiated Long-Term Agricultural Ground Lease Agreement includes a five-year initial term with five one-year renewal options, annual rent of $25 per acre, SGMA-compliant recharge operations, prohibition on groundwater pumping, and full lessee responsibility for maintenance and improvements; and WHEREAS, Visalia Municipal Code Section 16 requires that “no lease shall be made for a period longer than five years except by ordinance adopted by the Council.”; and WHEREAS, the proposed lease exceeds five years and therefore must be approved by ordinance.

NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF VISALIA:

Section 1. Authorization.

The City Manager is hereby authorized to execute, on behalf of the City of Visalia, the Long-Term Agricultural Ground Lease Agreement with Correia Custom Farming Inc. for the lease and agricultural management of APNs 118-020-036, 118 -020-037, and 119-010-021, substantially in the form attached as Attachment 3.

Section 2. Effective Date.

This ordinance shall take effect thirty (30) days following its adoption. 160

PASSED AND ADOPTED: BRETT TAYLOR, MAYOR

ATTEST: ___________________________

LESLIE CAVIGLIA, CITY CLERK APPROVED BY CITY ATTORNEY

___________________________

STATE OF CALIFORNIA )
COUNTY OF TULARE ) ss.

CITY OF VISALIA )

I, Leslie Caviglia, City Clerk of the City of Visalia, certify the foregoing is the full and true Ordinance 2026-02 passed and adopted by the Council of the City of Visalia at a regular meeting held on _____________, 2026 and certify a summary of this ordinance will be published in the Visalia Times Delta.

Dated: LESLIE CAVIGLIA, CITY CLERK

By Reyna Rivera, Chief Deputy City Clerk

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CITY OF VISALIA

LONG-TERM AGRICULTURAL GROUND LEASE AGREEMENT
408 Acres – Open Ground Near Highway 99 and Highway 198

This Long-Term Agricultural Ground Lease Agreement (“Agreement”) is made and entered into as of this ___ day of __________ 2026, by and between the City of Visalia, a Charter Law City organized under its Charter and the Constitution and laws of the State of California (“LESSOR” or “City”), and Correia Custom Farming, Inc., a California corporation (“LESSEE”). City and Lessee are sometimes referred to herein individually as a “Party” and collectively as the “Parties. ”

RECITALS
A. City owns approximately 408 acres of open agricultural land located near State Highway 99 and State Highway 198 in Visalia, Tulare County, California, more particularly described in Exhibit A (“Premises”).

B. City issued Request for Proposals No. 25-26-15 (“RFP”) for the long-term lease and agricultural management of the Premises. Lessee submitted a responsive proposal (“Proposal”), which City accepted.

C. The Parties met with the Tulare Irrigation District (“TID”), Mid-Kaweah Groundwater Sustainability Agency (“MKGSA”), and associated staff to confirm recharge feasibility, water-accounting responsibilities, dashboard administration, and SGMA compliance.

D. The Parties desire to enter into this Agreement to set forth the terms and conditions under which Lessee shall lease, farm, irrigate, and manage the Premises.

NOW, THEREFORE, the Parties agree as follows:

ARTICLE 1. PREMISES

1.1 Premises. City leases to Lessee the Premises described in Exhibit A, which is attached hereto and incorporated herein by this reference, consisting of approximately 408 acres, including all associated rights of ingress, egress, and appurtenances reasonably necessary for agricultural and recharge operations, subject to SCE easements and other encumbrances of record.

1.2 Acreage Adjustment. Acreage is approximate. If a survey or assessor’s records determine materially different farmable acreage, rent shall be adjusted proportionally.

ARTICLE 2. TERM AND RENEWAL

2.1 Initial Term. The initial term is five (5) years beginning on the Commencement Date.

2.2 Renewal Terms. Lessee may request up to five (5) one-year renewal terms (“Renewal Terms”).

This Agreement does not automatically renew.

2.3 Mandatory Meet and Confer. At least six (6) months prior to expiration of the Initial Term or any Renewal Term, the Parties shall meet and confer regarding operational performance, recharge activity, water-accounting status, infrastructure needs, and any anticipated City use of the Premises.

2.4 Written Renewal Required. Renewal is effective only upon written agreement executed prior to 162
expiration of the then-current term. Absence of full execution results in expiration without further obligation.

2.5 City Right to Decline Renewal. City may decline renewal without cause.

2.6 City Buyout for Municipal Purpose. City may terminate this Agreement in whole or in part upon twelve (12) months’ written notice if any portion of the Premises is required for a municipal purpose such as water-reclamation facility expansion, solar facilities, or other public projects. Lessee shall be compensated for unharvested crops, City-retained permanent improvements, and reasonable documented pre-termination input costs.

2.7 Holdover. Any holdover is a month-to-month tenancy at City’s discretion and may be terminated with thirty (30) days’ notice.

ARTICLE 3. RENT

3.1 Base Rent. Lessee shall pay City twenty-five dollars ($25.00) per acre annually, based on 408 acres, for a total annual rent of $10,200, payable in advance on or before the Commencement Date and each anniversary.

3.2 Payment Location. Payments shall be made to the City of Visalia, Finance Department, 220 N.

Santa Fe Street, Visalia, CA 93292.

3.3 Late Payment. Rent unpaid within thirty (30) days accrues interest at the lesser of ten percent (10%) per annum or the maximum allowed by law.

3.4 No Offset. Rent shall not be offset unless expressly authorized by this Agreement or required by law.

ARTICLE 4. USE OF PREMISES

4.1 Permitted Use. Lessee submitted a proposal (“Proposal”), attached hereto as Exhibit B and incorporated herein by this reference, in response to City’s Request for Proposals No. 25-26-15 (“RFP”), attached hereto as Exhibit C, and incorporated herein by this reference, for the long-term lease and agricultural management of the Premises. Lessee may use the Premises solely for agricultural production, field preparation, surface-water irrigation, and groundwater-recharge operations as set forth further in this agreement and consistent with the terms and conditions set forth in Exhibits B and C.

4.2 Prohibited Uses. Lessee shall not pump groundwater, apply reclaimed water without City approval, house animals, create nuisances, store hazardous materials except as permitted by law, or use City booster pumps without written permission.

4.3 Stewardship. Lessee shall maintain the Premises in productive agricultural condition, including weed control, dust management, stubble shredding, field preparation, and compliance with state and federal requirements.

4.4 Compliance. Lessee shall comply with the statutory and regulatory requirements of the Sustainable Groundwater Management Aact (“SGMA”) and the Irrigated Lands Regulatory Program “ILRP”), for the IRLP , as further set forth in Exhibit E, which is attached hereto and incorporated herein by this reference. To the extent Lessee’s activities are regulated by the Mid Kaweah GSA (“MKGSA”) and/or Tulare Irrigation District (“TID”), Lessee shall be responsible for compliance with all applicable laws and regulations.
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4.5 Soil Amendments. Manure and amendments shall comply with ILRP nutrient-management requirements, including setbacks and runoff controls.

4.6 Recharge Crop Flexibility. Lessee may temporarily forego or reduce crop production to maximize recharge opportunities.

ARTICLE 5. WATER MANAGEMENT AND SGMA COMPLIANCE

5.1 The Parties have discussed the feasibility of the use of and/or recharge of surface water on the Premises, and the appropriate water-accounting responsibilities and SGMA compliance activities required for same, and have agreed to allow for the for the use and/or recharge of surface water under the terms and conditions of this Article 5, and the terms and conditions of Exhibit D, attached hereto and incorporated herein by this reference.

5.2 Dashboard Administration. TID/MKGSA shall assign the Premises to Lessee within the Kaweah Subbasin Water Dashboard. City retains owner status and viewer-only access. APN segmentation shall isolate farmable leased acreage.

5.3 Groundwater Allocation. All dashboard allocations or credits attributable to the Premises during the Term shall accrue to Lessee, subject to MKGSA rules. Groundwater pumping remains prohibited.

5.4 Surface-Water Use. Lessee may apply flood-release water, storage-release water, and independently secured surface water (such as Persian-Watson shares) that do not reduce City supplies.

5.5 City’s Ten Percent (10%) Water Credit. City shall receive ten percent (10%) of the gross head gate diversion of qualifying flood-release or storage-release water applied to the Premises, measured at the head gate located on the Premises (the “Premises Head Gate”).

For the avoidance of doubt, the ten percent (10%) shall be calculated on the volume of qualifying water diverted at the Premises Head Gate and shall exclude any conveyance, transit, seepage, or other water losses occurring in the supply canal or otherwise upstream of the Premises Head Gate.

Independently secured water (e.g., Persian-Watson Ditch Company shares) is excluded.

5.6 Annual and Final Reconciliation. Lessee shall perform annual reconciliations and a final reconciliation upon termination. City’s 10% allocation shall be transferred annually through the district accounting process following each true-up. Dashboard control returns to City at the end of the Term.

5.7 ILRP Compliance. Lessee is solely responsible for all ILRP reporting, testing, and nutrient-management compliance, and as further set forth in Exhibit E.

5.8 Future SGMA Changes. The Parties acknowledge that SGMA rules evolve and agree the operational intent of this Agreement shall remain enforceable notwithstanding changes in terminology or accounting structure.

5.9 GSA Allocation Confirmation Letter. Promptly following the Commencement Date, and in any event within thirty (30) days thereof, the City shall deliver a letter to the Mid-Kaweah Groundwater Sustainability Agency (“MKGSA”) confirming that, during the Term, Lessee shall pay for and receive any allocation attributable to the Premises, and that any allocation credit remaining in the account upon expiration or earlier termination of the Term shall remain in Lessee’s account, to be administered in accordance with the Kaweah Subbasin Water Accounting Framework and 164
applicable MKGSA rules. The City shall reasonably cooperate with Lessee and the MKGSA to give effect to this Section.

ARTICLE 6. IMPROVEMENTS AND INFRASTRUCTURE

6.1 Lessee Improvements. Lessee may install irrigation pipelines, borders, levees, temporary pump installations, access improvements, or other structures reasonably necessary for farming or recharge. Permanent improvements require City approval.

6.2 Cost Responsibility. All improvements shall be constructed, maintained, and repaired at Lessee’s sole cost.

6.3 Ownership. Removable trade fixtures remain Lessee’s property; permanent improvements become City property unless otherwise agreed.

6.4 Ditch Pumps and Slough Access. Lessee is responsible for repair and operation of existing ditch pumps. Lessee may pump into or out of the slough consistent with agency rules. The temporary construction easement and berm detail referenced in Figures A-1 and A-2 affect portions of the Premises.

6.5 Recharge Infrastructure. Lessee may construct and maintain borders, levees, basins, and temporary conveyance structures for recharge.

6.6 City Responsibility. City has no obligation to provide water, repair pumps, or supply power.

ARTICLE 7. MAINTENANCE, TAXES, AND ASSESSMENTS

7.1 Condition of Premises. Lessee shall keep the Premises in agricultural condition and surrender them in comparable condition upon termination, ordinary wear and tear excepted.

7.2 Maintenance Duties. Lessee shall maintain all irrigation infrastructure, pumps, access roads, and recharge structures.

7.3 Taxes. Lessee shall pay all possessory-interest taxes, ILRP fees, SGMA fees, and assessments related to Lessee’s use and improvements.

7.4 Contesting Taxes. Lessee may contest taxes but must prevent liens and protect City.

ARTICLE 8. INSURANCE AND INDEMNIFICATION

8.1 Insurance. Throughout the term, at Lessee's sole cost and expense, Lessee shall keep or cause to be kept in force, for the mutual benefit of Lessor and Lessee, comprehensive broad form general public liability insurance against claims and liability for personal Injury, death, or property damage arising from the use, occupancy, disuse, or condition of the Premises, improvements, or adjoining areas or ways, providing protection for bodily injury or death to anyone person, at least $1,000,000 for anyone accident or occurrence, and $2,000,000 aggregate. Also throughout the Agreement terms, at Lessee's sole cost and expense, Lessee shall keep or cause to be kept in force, workers' compensation insurance with statutory limits and employer's liability insurance with limits of not less than $1,000,000 per accident.

All insurance required by express provision of this Agreement shall be carried only in responsible insurance companies licensed to do business in the State of California. All such policies shall be nonassessable and shall contain language, to the extent obtainable, to the effect 165
that (1) any loss shall be payable notwithstanding any act or negligence of Lessor that might otherwise result in a forfeiture of the insurance, (2) the insurer waives the right of subrogation against Lessor and against Lessor's agents and representatives, (3) the policies are primary and noncontributing with any insurance that may be carried by Lessor, and (4) they cannot be canceled or materially changed except after 30 days' notice by the insurer to Lessor or Lessor's designated representative. (5) LESSOR shall be named an additional insured. Lessee shall furnish Lessor with binders representing all insurance required by this Agreement. Lessee may effect for its own account any insurance not required under this Ground Lease Agreement. Lessee may provide by blanket insurance covering the Premises and any other location or locations any insurance required or permitted under this Agreement provided it is acceptable to all mortgages. Lessee shall deliver to Lessor, in the manner required for notices, copies or certificates of all insurance policies required by this Agreement, together with evidence satisfactory to Lessor of payment required for procurement and maintenance of the policy, within the following limits:
a. For insurance required at the commencement of this Agreement, within 30 days after the execution of this Agreement;
b. For insurance becoming required at a later date, at least 15 days before the requirement takes effect, or as soon thereafter as the requirement, if new, takes effect. c. For any renewal or replacement of a policy already in existence, at least 30 days before expiration or other termination of the existing policy.

If Lessee fails or refuses to procure or to maintain insurance as required by this Ground Lease Agreement or fails or refuses to furnish Lessor with required proof that the insurance has been procured and is in force and paid for, Lessor shall have the right at Lessor's election and on 5 day notice, to procure and maintain such insurance. The premiums paid Lessor shall be treated as added rent due from Lessee with interest at the rate of 18 percent per year, to be paid on the first day of the month following the date on which the premiums, stating the amounts paid and the names of the insurer or insurers, and interest shall run from the date of the notice.

8.2 Indemnification. LESSEE hereby agrees to and shall protect, indemnify, and hold harmless the LESSOR and all officers, agents, representatives, and employees thereof from any and all liability, claims, or damages of whatsoever kind or character, including attorneys' fees and costs of all types incurred in defense of any of the said parties from said claims or liability, because of or arising out of, directly or indirectly, the acts or omissions of the LESSEE, LESSEE's independent contractors, employees, representatives, agents and invitees, and the passive or active negligent acts or omissions of the LESSOR or its officers, agents, representatives, and employees while acting within the scope of their duties regarding work to be performed pursuant to this Ground Lease Agreement.

Said indemnification and hold harmless provisions shall be in full force and effect regardless of whether or not there shall be insurance policies covering and applicable to such damages, claims, or liability. This agreement shall be binding upon the LESSEE whether or not there are any allegations of fault, negligence, or liability of the indemnities hereunder.

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ARTICLE 9. ASSIGNMENT

9.1 Assignment. Lessee may not assign or sublet without City’s prior written consent.

9.2 No Release. Assignment does not release Lessee absent written City approval.

ARTICLE 10. DEFAULT AND REMEDIES

10.1 Events of Default. Default includes failure to pay rent, failure to comply with obligations, abandonment, lapse of insurance, failure to maintain, and SGMA/ILRP violations.

10.2 Remedies. Upon default, City may terminate, re-enter, re-let, use or store Lessee’s property, recover rent and damages, or cure Lessee’s obligations at Lessee’s cost.

10.3 No Waiver. Acceptance of rent is not a waiver.

ARTICLE 11. TERMINATION AND GROWING CROPS

11.1 Termination. This Agreement terminates at the end of the Term, upon default, or City’s municipal-purpose buyout.

11.2 Growing Crops. Lessee may harvest crops planted before termination, subject to conditions.

ARTICLE 12. DISCLOSURE

12.1 Disclosure. Lessee discloses its principal’s roles with Mid-Kaweah GSA and Persian-Watson Ditch Company; Parties confirm arm’s-length negotiation.

ARTICLE 13. NOTICES

13.1 Notices. Notices shall be in writing and delivered personally, by certified mail, or by overnight courier.

Addresses:

City of Visalia, 707 E. Acequia Avenue, Visalia, CA 93291 Copy: Public Works, 7579 Avenue 288, Visalia, CA 93277
Lessee: Correia Custom Farming, Inc., 1434 N. West Street, Tulare, CA 93274

ARTICLE 14. GENERAL PROVISIONS

14.1 Governing Law. California law governs; venue lies in Tulare County.

14.2 Entire Agreement. This Agreement and Exhibits constitute the entire agreement.

14.3 Amendment. Must be in writing.

14.4 Severability. Invalid provisions do not affect remainder.

14.5 Time of Essence. Time is of the essence.

14.6 Counterparts. Electronic signatures permitted.

14.7 Binding Effect. Agreement binds successors and permitted assigns.

SIGNATURES

Lessee: Correia Custom Farming, Inc.

By: ___________________________________
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Title: __________________________________
Date: ___________________________________

City of Visalia
City Manager: ____________________________
Date: ___________________________________

Risk Manager: ____________________________
Date: ___________________________________

City Attorney (Approved as to Form): ________________________ Date: ___________________________________

EXHIBIT A – LEGAL DESCRIPTION, MAP , AND EASEMENT SUMMARY EXHIBIT B – LESSEE PROPOSAL
EXHIBIT C – RFP NO. 25-26-15
EXHIBIT D – WATER ACCOUNTING FRAMEWORK SUMMARY
EXHIBIT E – ILRP NUTRIENT-MANAGEMENT REQUIREMENTS

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EXHIBIT A

LEGAL DESCRIPTION, MAP , AND EASEMENT SUMMARY
(City of Visalia – 408-Acre Open Ground Property)

A-1. Property Identification
The Premises consist of approximately 408 acres of City-owned agricultural open ground located near State Highway 99 and State Highway 198, adjacent to the Visalia Water Reclamation Facility (WRF).

The Premises include the following Assessor’s Parcel Numbers (APNs), as documented on the City’s official parcel map:
• APN 118-020-036
• APN 118-020-037
• APN 119-010-021
These three APNs collectively comprise the lease area.

A-2. Farmable Acreage and SCE Easements
Of the 408 total acres, approximately 405.82 acres are farmable.

The remaining 2.18 acres are excluded due to Southern California Edison easements, as confirmed by City Engineering staff:
• Southern California Edison Easements (Total: 2.18 Acres) • Transmission Pole Easement: 0.76 acres
• Distribution Pole Easement: 0.08 acres
• Temporary Construction Easement: 1.34 acres
• Total Excluded Acreage: 2.18 acres
These acreages were provided by the City of Visalia Senior Civil Engineer, Eric Bons, P .E., in the November 2025 correspondence regarding the Hwy-99 & Ave 280 Interchange project.

A-3. Exhibit A Map
The official City map titled:
“Visalia Water Reclamation Facility – Open Ground Land Lease Map” showing:
• APN boundaries
• City limits
• Section 1 (163 acres)
• Section 2 (149 acres)
• Section 3 (96 acres)
is incorporated herein and attached as Exhibit A – Map (next page):

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A-4. Berm Detail Related to Temporary Construction Easement The earth berm detail prepared for Caltrans’ contractor (Granite Construction Co.) titled:
“BERM DETAIL – N.T.S. – 7/28/2025”
is incorporated into this exhibit to document construction restrictions and the boundary of the SCE temporary construction easement.

This detail appears here:

City staff confirmed that:

• The berm was proposed for the purpose of preventing irrigation or flood water from entering the Caltrans construction area.
• If constructed, it must be removed and the area regraded to existing conditions following completion of work.
• The berm location corresponds to the temporary construction easement included in the 2.18 acres of excluded land.

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A-5. Summary Table
Category Acres Notes
Total Parcel Acreage 408.00 From City parcel map
Total Farmable Acreage 405.82 After removing SCE easements Transmission Pole Easement 0.76 Excluded
Distribution Pole Easement 0.08 Excluded
Temporary Construction Easement 1.34 Excluded
Total Easement Acreage Excluded 2.18 Confirmed by City Engineering

A-6. Effect on Lease
The acreage described herein establishes:
• The rent basis (408 acres)
• The farmable acreage (405.82 acres)
• The excluded acreage (2.18 acres, not available for farming or surface-water application) • Boundaries for planting, recharge operations, and maintenance obligations

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EXHIBIT B

LESSEE PROPOSAL

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EXHIBIT C
RFP-25-26-15
RFP-25-26-15A1
RFP-25-26-15A2

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EXHIBIT D

WATER ACCOUNTING FRAMEWORK SUMMARY
This summary captures the operational, accounting, and administrative framework confirmed by the City, TID, MKGSA, and the Lessee during the June 4, 2026 meeting.

D-1. Dashboard & APN Administration
• Premises assigned to Lessee as operator in Kaweah Subbasin Water Dashboard. • City retains owner role.
• APN segmentation isolates farmable acreage from non-leased portions. • Dashboard supports separation of operator and owner information. • City may maintain viewer-only access.

D-2. Water Accounts
• Lessee manages Water Account No. 16 components associated with the Premises. • City retains Water Account No. 1562 for City portfolio management.

D-3. City’s 10% Annual Water Credit
• Applies only to qualifying storage-release and flood-release water. • Calculated from the head gate diversion measured at the head gate located on the Premises (the “Premises Head Gate”), excluding any conveyance, transit, seepage, or other supply‑canal losses occurring upstream of the Premises Head Gate.
• Excludes independently secured water (e.g., Persian-Watson shares). • District leave-behind does not reduce City’s 10% calculation. • Accounting logs maintained by Lessee.

D-4. Annual and End-of-Term True-Up
• Lessee performs annual reconciliations.
• City receives 10% annual share.
• Final reconciliation upon termination.
• Dashboard control returns to City following reconciliation. • Remaining operator credits revert to Lessee per MKGSA rules.

D-5. Surface Water & Recharge Operations
• Operational feasibility confirmed for:
– existing ditch pumps;
– pumping into slough and lifting;
– borders and levees;
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– recharge infiltration;
– coordination with pecan orchard users where applicable. • Recharge dependent on hydrology, infrastructure capacity, operator readiness.

D-6. SGMA, GSP, Basin Administration
• Property located within surface-water-eligible area.
• Accounting, pumping limitations, and transfer rules vary by GSA. • Lease language must remain adaptable due to evolving SGMA terminology.

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EXHIBIT E

ILRP NUTRIENT-MANAGEMENT REQUIREMENTS
This Exhibit summarizes the Irrigated Lands Regulatory Program (ILRP) obligations applicable to the leased acreage.

E-1. ILRP Compliance Is Solely Lessee’s Responsibility
Lessee is responsible for:
• Enrollment in the appropriate coalition (KBWQA).
• Annual Member Dues to coalition.
• Farm Evaluations and Annual Reporting.
• Nitrogen Management Plan (NMP) and Summary Reports.
• Soil sampling and nutrient budgeting.
• Irrigation and nitrogen-use reporting.
• Setback distances from watercourses.
• Field runoff controls and erosion prevention.
• Documentation retention for a minimum of 7 years.

E-2. Manure Application Standards
Manure applications must comply with:
• ILRP nutrient-application limits;
• Total nitrogen budgeting;
• Soil testing before and after application;
• Proper setback distances;
• No discharge of manure to surface waters;
• Winter application restrictions where applicable.

E-3. Coalition & Regulatory Reporting
Lessee shall timely submit:
• Annual ILRP reporting;
• Any required third-party documentation;
• Field-specific nitrogen reporting;
• Documentation required by CVRWQCB.

E-4. City Access to Records
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Upon request, Lessee shall provide the City:
• NMPs (summaries, not proprietary details);
• Annual ILRP compliance confirmations;
• Soil test summaries;
• Records demonstrating compliance.

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CITY OF VISALIA, CA

REQUEST FOR PROPOSALS
RFP NO. 25-26-15

CITY OF VISALIA OPEN GROUND LAND LEASE

DESCRIPTION:

The City of Visalia is soliciting proposals from qualified individuals or entities to lease approximately 408 acres of City- owned open land. The property is located east of State Highway 99 and along State Highway 198 in the City of Visalia, County of Tulare, and is available under a long -term Ground Lease agreement. The selected lessee will be responsible for managing the Premises in a manner that preserves its condition, complies with all applicable laws, and aligns with the terms of the lease. The Premises includes all land and appurtenances unless otherwise specified.

Booster pumps located on the site are excluded from the lease and remain the exclusive property of the City. This lease represents an opportunity for qualified parties to secure use of City -owned land under a mutually beneficial agreement.

PROPOSER CONFERENCE:

On Monday, March 16, 2026, an informational tele conference will be held beginning at 10:00 a.m. at the Visalia Reclamation Facility, 7579 Ave 288, Visalia, CA 93277. Interested proposers are encouraged to participate. This is a time to ask questions about the project work and contract requirements.

SUBMITTAL DEADLINE:

One (1) unbound original, four (4) copies, and one digital copy on USB must be received no later than: 1:00 p.m. on Thursday, April 2, 2026.

SUBMITTAL INSTRUCTIONS:

Addressed to: Purchasing Division
707 W. Acequia Avenue, Visalia, CA 93291

From: Proposer’s Name & Mailing Address

Mark envelope: RFP No. 25-26-15

CITY OF VISALIA OPEN GROUND LAND LEASE

Emailed submittals will not be accepted. Proposals received after the time and date stated above shall be returned unopened to the proposer.

Please note that City office hours are Monday -Thursday 7:30am -5:00pm. We are Closed on Fridays and City recognized Holidays. Proposers shall not schedule delivery of proposals/submittals on Fridays as they will not be received when the office is closed. It is the responsibility of the Proposer to schedule deliveries during the City’s open office hours.

INQUIRIES: Direct questions for clarification of this document to Purchasing Division (559) 713 -4334, or email [email protected]. To prevent misinterpretation, the Purchasing Division requests that all questions regarding the scope of services be addressed in wr iting via email. Questions may be asked at any time prior to, but no later than Monday, March 23, 2026.
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City of Visalia’s Open Ground Land Lease
RFP NO. 25-26-15

CITY OF VISALIA, CALIFORNIA

REQUEST FOR PROPOSALS
RFP-25-26-15

SEALED PROPOSALS will be received by the Visalia Purchasing Division until 1:00 P.M. on Thursday, April 2, 2026 for the City of Visalia’s Open Ground Land Lease.

Ground Lease information and agreement documents may be obtained by calling (559) 713 -4334, emailing your request to [email protected] or may be downloaded from registered users of BidNetDirect.

On Monday, March 16, 2026, an informational , non-mandatory proposal meeting will be held at 10:00 a.m. at the Visalia Reclamation Facility, 7579 Ave 288, Visalia, CA 93277. Interested proposers are encouraged to participate.

This is a time to ask questions about the project work and contract requirements.

The City hereby affirmatively ensures that Minority Business Enterprises and Disadvantaged Business Enterprises (DBE) will be afforded full opportunity to submit proposals in response to this notice. Individuals and/or entities submitting bids/proposals to the City of Visalia will not be discriminated against on the basis of age, race, religion, creed, color, national origin, ancestry, physical or mental disability, medical condition, genetic information, marital status, gender, gender identity or expressio n, sexual orientation, or military and veteran status in any consideration leading to the award of contract.

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

Publication Dates: 3/3/26 & 3/8/26

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City of Visalia’s Open Ground Land Lease
RFP NO. 25-26-15

TABLE OF CONTENTS

TITLE PAGES
I. Definitions ......................................................................................................................................... 4 II. Introduction ...................................................................................................................................... 4 A. Information ......................................................................................................................... 4 B. Background ......................................................................................................................... 4 C. Purpose and Objective........................................................................................................ 5 D. RFP/Agreement Schedule ................................................................................................... 6 III. Scope of Services .............................................................................................................................. 6 A. Services of the Lessee ......................................................................................................... 6 B. City Responsibilities ............................................................................................................ 8 IV. Proposal Content and Format Requirements ................................................................................... 8 A. General Information ........................................................................................................... 8 B. Proposal Project Approach ................................................................................................. 8 C. Staff Qualifications and Related Experience ....................................................................... 9 D. Proposed Fee Structure and Schedules .............................................................................. 9 E. Conflict of Interest ............................................................................................................ 10 V. Lessee Selection Procedure ............................................................................................................ 10 A. Criteria & Weight of Criteria ............................................................................................. 10 B. Background Check ............................................................................................................ 11 C. Award of Contract ............................................................................................................ 11 VI. Examination of Contract Requirements & Acceptance of Proposal Content ................................. 11 A. Withdrawal of Proposals .................................................................................................. 12 B. Rejection of Proposals ...................................................................................................... 12 C. Evaluation/Award of Contract .......................................................................................... 12 VII. Measurement & Payment .............................................................................................................. 12 A. Billing & Payments ............................................................................................................ 13 B. City’s Right to Withhold Certain Amounts ........................................................................ 13 VIII. General Conditions........................................................................................................................ 14 A. Important Notice .............................................................................................................. 14 B. Legal Responsibilities ........................................................................................................ 14 C. Permits and Licenses ........................................................................................................ 15 D. Insurance .......................................................................................................................... 15 E. Assignment of Contract .................................................................................................... 15 F. Documents/Data .............................................................................................................. 16 G. Termination of Contract ................................................................................................... 16 H. Right To Require Performance ......................................................................................... 16 I. Ethics in Public Contracting .............................................................................................. 16 J. Independent Contractor ................................................................................................... 16 K. Equal Employment Opportunity ....................................................................................... 16 L. Venue ................................................................................................................................ 17 M. Proprietary Information.................................................................................................... 17 N. Incurring Costs .................................................................................................................. 17 O. Executive Order N-6-22, Russian Sanctions ...................................................................... 17 Attachments which must be completed and submitted with proposal:

Non-Collusion Affidavit
Workers Compensation Insurance Certificate
Equal Employment Opportunity Compliance Certificate
Disclosure Forms
Americans with Disabilities Act Compliance Certificate
Drug-Free Workplace Certificate
Iran Contracting Act Compliance
Sample Ground Lease Agreement (do not submit with proposal; informational only) Exhibit A – Map of Open Ground
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I.

DEFINITIONS

For the purposes of this RFP NO. 25-26-15 the following terms shall have the meanings indicated:

1. “City” means the City of Visalia

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

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

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

5. “RFP” means Request for Proposal No. 25-26-15

II.

INTRODUCTION

A. Information

The City of Visalia is soliciting proposals from qualified and properly licensed agricultural operators to lease City - owned open ground for agricultural purposes. The Premises, as described in this RFP and accompanying exhibits, may be used for dry farming, subject to applicable water availability and land use conditions. The selected lessee will be responsible for all aspects of agricultural operations conducted on the Premises, including compliance with all applicable laws and regulations, adherence to lease terms, and maintaining the land in good and serviceable condition for the duration of the lease.

On Monday, March 16, 2026, an informational , non-mandatory proposal meeting will be held at 10:00 a.m. at the Visalia Reclamation Facility, 7579 Ave 288, Visalia, CA 93277. Interested proposers are encouraged to participate.

This is a time to ask questions about the project work and contract requirements.

One (1) unbound original, four (4) copies and one (1) digital copy on USB Drive must be received no later than 1:00pm on Thursday, April 2, 2026. Proposals received after that date and time will be returned unopened to the proposer .

Please note that City office hours are Mon day-Thursday 7:30am-5:00pm. We are Closed on Fridays and City recognized Holidays. Proposers shall not schedule delivery of proposals/submittals on Fridays as they will not be received when the office is closed. It is the responsibility of the Proposer to schedule deliveries during the City’s open office hours.

Any revisions to the Request for Proposals will be issued and distributed as addenda. Proposers are specifically directed not to contact any other City personnel for meetings, conferences or technical discussions relat ed to this Request for Proposal. Failure to adhere to this policy may be grounds for rejection of proposals.

Direct questions for clarification of this document to Purchasing Division (559) 713 -4334, or email [email protected]. To prevent misinterpretation, the Purchasing Division requests that all questions regarding the scope of services be addressed in wr iting via email. Questions may be asked at any time prior to, but no later than Monday, March 23, 2026.

Local Vendor Preference Points: In an effort to encourage local businesses to provide goods and services to the City, Council has enacted a local vendor preference policy. The local preference will apply to any business that has a business address within Tulare County for a minimum of si x months. A Post Office Box will not be accepted as a business address. The City reserves the right to request proof of Tulare County address. 5 points (Local Vendor Preference Points) will be given to any Proposer who has a business address in Tulare County for the past six months.

B. Background

Located in California’s Central Valley between the metropolitan areas of Fresno and Bakersfield, the City of Visalia lies east of State Highway 99 and along State Highway 198. With a population of over 140,000 residents, Visalia 196

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serves as a regional hub for agriculture and commerce. The City owns a parcel of open agricultural land within the City limits, consisting of approximately 408 acres, and as described in Exhibit A.

Historically, the property has been used for farming purposes under various management and lease arrangements.

In keeping with the City’s commitment to responsible management of public assets, the City is seeking to enter into a Ground Lease agreement with a qualified lessee for agricultural use of the property for dry farming. This RFP is intended to identify an experienced individual, business, or agricultural operation with the capacity to lease the land and operate it in a manner consistent with the City’s standards for land stewardship, compliance with applicable laws, and preservation of soil and water resources. The resulting Ground Lease will clearly define the terms and conditions of use, including requirements for maintenance, insurance, irrigation arrangements, payment structure, and compliance with all applicable regulations and lease provisions.

C. Purpose, Objective and Services to be Provided.

Purpose
The purpose of this Request for Proposals (RFP) is to solicit proposals from qualified farmers, agricultural operators, or related entities interested in entering into a Ground Lease agreement with the City of Visalia for the agricultural use of approximately 408 acres of City -owned open ground. This RFP is intended to ensure a fair and competitive process for the lease of public agricultural property, with the goal of securing a responsible lessee who will operate the land for farming purposes —such as dry farming or other permissible agricultural practices —and maintain it in accordance with City standards, applicable regulations, and the terms of the lease.

Objectives
The objective of this RFP is to establish a mutually beneficial lease agreement that supports the productive, sustainable, and legally compliant use of the City’s agricultural land asset. The City seeks to:
• Ensure the land is actively managed for agricultural purposes and maintained in good condition. • Promote agricultural practices that preserve soil health and use water resources responsibly. • Generate revenue or other tangible public benefits through the lease of the property. • Safeguard public interests by ensuring lessee compliance with all legal, environmental, and operational obligations.
• Maintain a transparent, equitable leasing process in alignment with municipal policies and procedures.

Services to Be Provided by Lessee
The selected lessee shall be responsible for the following:

1. Agricultural Use and Operations – Utilize the property for permissible agricultural purposes such as dry farming, row crops, or other lawful crop production, consistent with City land use regulations and the terms of the lease. The City will not allow irrigation of this property.

2. Property Maintenance – Maintain the premises in good agricultural condition, including weed abatement, soil management, erosion prevention, and removal of waste or debris. The property must remain free from hazardous conditions, illegal activities, or misuse at all times. In addition, the lessee is required to implement and maintain effective dust mitigation and weed control measures throughout the term of the lease, in accordance with applicable laws and to the satisfaction of the City.

3. Irrigation and Water Management – Irrigation of the property is strictly prohibited. The lessee shall not install, operate, or maintain any irrigation systems or engage in any irrigation activities. All water use for agricultural or landscaping purposes must be conducted without irrigation , and no modifications to existing water infrastructure are permitted.

4. Environmental Stewardship – Implement best management practices to protect soil health, conserve resources, and minimize runoff, in compliance with all environmental laws and regulations.

5. Repairs and Improvements – Provide and fund any routine maintenance, improvements, or repairs permitted by the lease, ensuring compliance with City approval requirements where applicable.

6. Compliance with Laws – Adhere to all applicable federal, state, and local laws, ordinances, zoning regulations, labor laws, and agricultural codes, including obtaining and maintaining all required licenses, permits, and certifications for operations on the property.

7. Insurance – Secure and maintain insurance coverage appropriate to the proposed operations, naming the City of Visalia as an additional insured, and maintain coverage for the duration of the lease. 197

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8. Rent and Financial Obligations – Pay rent and any other applicable fees in the manner and schedule specified in the lease agreement (e.g., monthly or annually).

9. Access for City Oversight – Allow reasonable access to the property by City staff for inspection or other municipal purposes, with prior notice. Maintain open communication with the City and coordinate on inspections, reporting, and operational updates.

10. Restrictions on Assignment – The lessee shall refrain from subleasing, transferring, or assigning the lease without prior written consent from the City, unless otherwise allowed under the lease agreement.

D. RFP/Agreement Schedule

Event Date of Event

RFP Available to the public ................................................................................................ 2/25/2026 Proposer Conference, 10:00am at 7579 Ave. 288, Visalia, CA......................................... 3/16/2026 Questions Deadline ........................................................................................................... 3/23/2026 RFP due at 1:00 pm at 707 W Acequia ............................................................................... 4/2/2026 Short list established and Lessees notified ................................................................................... tbd Interviews/Presentations with short-listed Lessees (if required) ................................................... tbd Award of Lease Agreement @ City Council Meeting ................................................................... tbd Lease Begins ................................................................................................................................ tbd

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

III.

SCOPE OF SERVICES

A. Services of the Lessee
The selected lessee shall be responsible for the lawful use, general upkeep, and long -term maintenance of approximately 408 acres of City-owned open land (the “Premises”), as described in Exhibit A. The lease shall define the permitted uses, the lessee’s responsibilities, and required performance standards. The lessee will assume full responsibility for the condition, operation, and authorized agricultural use of the Premises during the lease term.

Permitted activities may include dry farming, row crops, or other agricultural operations consistent with applicable zoning, environmental standards, and City ordinances. The lessee must maintain the property in a condition acceptable to the City, employin g best management practices to preserve soil health, prevent erosion, and comply with all environmental regulations.

The lessee will be responsible for:

1. Conducting agricultural operations in compliance with all applicable laws, permits, and lease provisions.

2. Maintaining the land, fences, gates, roads, and other site infrastructure in good condition.

3. Prohibiting dumping, trespassing, and illegal activities ; restoring and cleaning up land in the event of dumping, trespassing, illegal activities, etc.

4. Water Use and Farming Practices – Only dry farming practices are permitted on the property. The use of irrigation systems or any form of artificial watering is strictly prohibited. The lessee shall manage all agricultural activities in compliance with wate r availability limitations established by the City, including adherence to Sustainable Groundwater Management Act (SGMA) requirements and any applicable groundwater management regulations.

5. Funding and performing routine maintenance and repairs, with prior City approval for new improvements or modifications.

6. Providing required insurance, permits, and licenses.

7. Timely payment of rent and any other financial obligations.

8. Coordinating with the City on inspections, reporting, and compliance matters.

The City will retain reasonable access for inspection and oversight, as well as pay property taxes and designate a City representative to serve as the liaison for lease matters.

Deliverables
The lessee shall provide, at minimum, the following:
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1. Executed Lease Agreement – Completion and return of a fully executed Ground Lease within the timeframe specified by the City.

2. Use Plan (if applicable) – A brief written summary describing proposed agricultural use, including planned crops, and any improvements or modifications, consistent with zoning and land use restrictions.

3. Maintenance and Site Management –
o Weed and vegetation control per fire code and local ordinances. o Dust control measures in accordance with air quality regulations and local ordinances. o Signage or other measures to Prevent illegal dumping, illegal activities, and trespassing as Lessee is responsible for any clean -up or remedy for damages of illegal dumping , trespassing or illegal activities.
o General land stewardship to preserve site condition and appearance. o Maintenance of fences, gates, roads, and related infrastructure. o Repair of damage caused by lessee operations.
o Supply of all labor, tools, and materials necessary for upkeep. o Prior City approval for new improvements or modifications. o Written City authorization for major infrastructure repairs exceeding $7,500. o Emergency repairs by City (due to lessee neglect) may be performed and costs added to lease o Annual Infrastructure Condition Report with repair notes.

4. Insurance Documentation –
o Maintain all required insurance (e.g., general liability, workers’ compensation) naming the City as an additional insured, including, but not limited to:

1. Workers’ Compensation insurance as required by California statutes.

2. Commercial general liability insurance with a combined single limit of not less that One Million Dollars ($1,000,000) per occurrence. Such insurance shall include coverage for Premises and Operations, Contractual Liability, Personal Injury Liability, Prod ucts 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 that 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 busines s automobile policy.
o Submit certificates of insurance annually and upon renewal. o Indemnify the City against claims arising from operations. o Provide incident reports within 5 business days of any injury, accident, or claim.

5. Payment of Rent and Seasonal Use – Lessee shall ensure timely payment of rent as specified in the lease (annually or monthly). While farming activity may vary seasonally, including limited or no cultivation during summer months due to lack of water, the lessee remains responsible for all required site maintenance and compliance obligations year -round. The City may consider rent adjustments or waivers for inactive farming periods; however, the lessee retains exclusive possession of the property during the le ase term and is therefore accountable for ensuring the property is properly maintained and not left unattended or unmanaged.

6. Compliance with Laws and Regulations –
o Obtain and maintain all required agricultural licenses, permits, and certifications. o Comply with zoning, environmental, SGMA groundwater management, pesticide use, and labor laws. o Comply with all applicable Air Board requirements, including obtaining necessary permits and fulfilling monitoring and reporting obligations.
o Provide copies of permits and licenses at lease commencement and upon renewal or change. o Provide written confirmation of compliance upon City request.

7. Reporting Requirements (if requested) – Annual operational summaries, water usage reports, or other documentation as needed to verify compliance.

8. End-of-Term Condition Report – Written report on the property’s condition upon lease expiration or termination; premises must be returned in clean, acceptable condition, subject to City inspection.

9. City Access and Oversight –
o Allow City access for inspections.
o Cooperate with administrative and oversight efforts.
o Facilitate up to two scheduled site visits per year.
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o Provide written responses to City inspection findings requiring corrective action.

B. City Responsibilities

1. Payment of property taxes

2. Provide a "City Representative" who will represent the City and who will work with the lessee in carrying out the provisions of the RFP. The Lessee shall communicate with the City representative who will provide the following services:
▪ Examine documents submitted to the City by the Lessee and timely render decisions pertaining thereto.
▪ Give reasonably prompt consideration to all matters submitted by the Lessee for approval to the end that there will be no substantial delays in the Lessee’s program of work.

IV.

PROPOSAL CONTENT AND FORMAT REQUIREMENTS

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

A.

General Information

• Firm name, address, telephone number and email address. • Account Representative or other person to contact for clarification of any item contained in the proposal. Include telephone number, and email address if different from above. • Specify type of organization (individual, partnership or corporation) and if applicable indicate whether you are:

a. Small Business.
b. Disadvantaged Business.
c. Minority and/or Women-Owned Business.

• Provide your Federal Tax ID Number and City of Visalia Business Tax Certificate Number. • Names of company’s owners / officers.
• Personnel of the Proposer’s Firm must be identified in the proposal with their background and the firm must give assurances of continuity of its personnel. A contact person needs to be identified. • Provide surety information for all sureties – General and Automobile Liability, E/O and Worker’s Compensation. • References and Referrals
• Completed and signed forms included with this RFP.

B.

Proposed Program Approach
Summarize your approach and understanding of the program and any special considerations of which the City of Visalia should be aware. Indicate clearly, the levels of participation you will expect from City of Visalia staff in the fulfillment of the contract. The contents of this section shall be determined by the proposer but should demonstrate an understanding of the special characteristics of the project.

This section shall outline the proposed approach to the project. This approach or scope of work shall consist of:

• Objective(s)
• Task(s) and brief description
• Work products
• Meeting(s)

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

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While the City believes this RFP provides the necessary direction for the Lessee to provide a proposal to complete the services, the City understands that there may be additional items the Lessee may discover during the development of their proposal. The Lessee is encouraged to include/address any items that they feel the City has omitted in error or that should be included as part of the services to complete this project. All proposers may include a maximum of two (2) pages of information not included , nor requested in this RFP, if you feel it may be useful and applicable to this project.

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

C.

Staff Qualifications and Related Experience

1. Staff Qualifications and Experience
This section should demonstrate the qualifications of all professional personnel to be assigned to this project by providing resumes/experience summaries describing their education, credentials, related experience and their proposed roles for this contract. Note: Lessee may not substitute any member of the project team without prior written approval of the City.

2. Related Experience
Include descriptive information concerning the experience of the firm. Include information about previous work that might be comparable, including the size , type, and scope of services provided. In addition, provide references for the three (3) most comparable services and/or related work for which your firm has provided, or currently is providing.

List the work in reverse chronological order and provide the following information for each project:

Indicate for each of these projects:

• Name of work/project
• Location
• Brief description (type of farming operation performed) • Name of owner
• Name of owner's contact person and telephone number (contact person, who, at the time of RFP submittal, will be employed by the owner)
• Your firm's specific involvement (i.e., Owner, Lessee, sublessee, etc.) • The proposed cost vs. actual cost
• Status of completion

D.

Proposed Fee Structure
The Proposed Lease Payment Structure shall be submitted as part of the RFP submittal .

Respondents shall provide the proposed lease payment terms to the City in the format outlined below:

• Clearly state the proposed lease payment amount, including payment frequency (e.g., monthly, quarterly, or annually).
• Identify any proposed rent adjustments for seasonal or inactive farming periods, if applicable. • While no farming activity may occur during certain times of the year (e.g., summer), the proposer will be expected to maintain the property year-round.
• Note that this is not a service contract, and proposers are not to include any charges for services rendered.

The proposal should reflect the payment the proposer will make to the City for the right to lease and occupy the property.

The lease payment proposal along with the proposed approach to property use and maintenance, will form the basis for any lease negotiations. Final lease terms may be adjusted to meet the City's operational and property management needs. Considerations for Consumer Price Index (CPI) annual increases should be factored into the proposed lease payment structure.
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E. Conflict of Interest

• Disclose any financial, business or other relationship with the City or any member of the City staff that may have an impact on the outcome of the project.

• List current clients who may have a financial interest in the outcome of the project .

V.

LESSEE SELECTION PROCEDURE

Selection of the successful proposal shall be generally based on the information provided by the Vendors in response to the Request for Proposals and any subsequent interviews that may be conducted. Lessee interviews will be held solely at the option and discretion of the City of Visalia. The process for selection shall occur in the following sequence:
• Review Proposals
• Establish a “short list” of three or more firms
• Interview “short-listed” firms (at the option and discretion of the City) • Identify best qualified firm
• Determine which, if any, alternates will be selected, and negotiate a fee • Award contract

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

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

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

Criteria Explanation Weight
Experience and Qualifications Demonstrated experience in leasing or managing open land, including the qualifications of key
personnel and proven ability to operate in
compliance with applicable laws, ordinances, and
regulations.
35 Proposed Use and Management
Plan
Feasibility, clarity, and thoroughness of the
proposed plan for use, maintenance, and
stewardship of the Premises, including operational
strategies, site management, and adherence to
lease terms.
30 Financial Proposal Competitiveness and reasonableness of proposed rent, payment structure, and overall financial benefit
to the City.
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Coordination and Communication Plan for coordinating with City staff, submitting reports, and maintaining open lines of
communication.
5 Local Vendor Preference Preference with a business address in Tulare County for the past 6 months as described in Section II.

Introduction
5 Total Points Possible 100

Prior to the award of contract, the City must be assured that the proposer selected has all of the resources required to successfully perform under the contract. This includes, but is not limited to, personnel with the skills required, equipment/materials and financial resources sufficient to provide services called for under this contract. If, during the evaluation process, the City is unable to assure itself of the proposer’s ability to perform under the contract, if awarded, the City has the option of re questing from the proposer, any information that the City deems necessary to determine the proposer’s capabilities. If such information is required, the proposer will be notified and will be permitted seven (7) working days to submit the requested information.

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

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

VI.

EXAMINATION OF CONTRACT REQUIREMENTS AND ACCEPTANCE

OF PROPOSAL CONTENT

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

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

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

Should the proposer feel there has been a supplemental or oral modification, it shall be his responsibility to verify said modification in writing prior to submission of the proposal. 203

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

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

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

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

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

C. Evaluation/Award of Contract
Evaluation and selection of proposals will be based on the information called for in this RFP. Brochures or other promotional presentations beyond that sufficient to submit a complete and effective proposal are not desired.

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

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

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

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

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

3. Proposer shall indemnify and hold harmless the City, its officers, officials, employees, and agents from and against all claims, damages, losses, and expenses caused in whole or in part by any negligent act or omission of the proposer, its Lessees, subcontractor, anyone directly or indirectly employed by any of them, or anyone 204

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for whose acts any of them may be liable, except where caused by the active negligence, sole negligence, or willful misconduct by the City.

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

5. Proposer warrants that no gratuities, in the form of gifts, entertainment, or otherwise, were offered or given by the proposer, to any officer or employee of the City with a view toward securing the contract or securing favorable treatment with respect to any determination concerning the performance of the contract. For breach or violation of this warranty, the City shall have the right to terminate the contract, either in whole or in part. The rights and remedies of the City provided in this clause shall n ot be exclusive, and are in addition to any other rights and remedies provided by law or under the contract.

VII.

MEASUREMENT AND PAYMENT
A. Billing and Payments

The lessee is responsible for timely payment of all lease amounts as specified in the lease agreement. No services are being provided or billed to the City under this agreement. The lessee shall not submit invoices to the City for any reason and shall instead remit payment according to the terms and schedule established in the final lease.

Failure to make timely lease payments may result in penalties, interest, or lease termination, as defined in the lease agreement.

B. City’s Right to Withhold Certain Amounts
If the lessee fails to perform any obligations under the lease — including but not limited to maintenance, weed and dust control, or other site responsibilities — the City reserves the right to:
• Withhold any applicable credits or reimbursements otherwise due to the lessee (if any), or • Offset the cost of completing such obligations against future payments due from the lessee, or • Pursue any remedies available under the lease, including default or termination.

The City shall determine the amount necessary to cover unperformed or deficient obligations, and such determination shall be binding unless otherwise agreed to in writing.

VIII.

GENERAL CONDITIONS

A. Important Notice
The City of Visalia will not be responsible for oral interpretations given by any City employee, representative, or others. Proposers are cautioned that any statements made that materially change any portion of the proposal documents shall not be relied upon unless subsequently ratified by a formal written amendment to the proposal document. The issuance of a written addendum is the onl y official method whereby interpretation, clarification, or additional information can be given. If any addenda are issued to this Request for Proposals, the City will attempt to notify all prospective vendors who have secured same. However, it will be the responsibility of each vendor, prior to submitting their proposal, to contact the Purchasing Division, located at 707 W. Acequia, Visalia, CA 93291, (559) 713-4334 to determine if addenda were issued and to make such addenda a part of the proposal.

B. Legal Responsibilities

1. All proposals must be submitted, filed, made, and executed in accordance with State of California and Federal laws relating to proposals for contracts of this nature whether the same or expressly referred to herein or not. By submitting a proposal, Lessee certifies that he or she will comply with all Federal laws and requirements, including but not limited to Equal Employment Opportunity, Disadvantaged Business Enterprise, Labor Protection and other laws and regulations. 205

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C. Permits and Licenses

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

2. Professional License
Lessee is to be licensed in accordance with the California Business and Professions Code and is to possess current professional registration, if required for commencing work, and be licensed to perform work in the State of California.

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

D. Insurance

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

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

As respects all acts or omissions which do not arise directly out of the performance of services, including but not limited to those acts or omissions normally covered by general and automobile liability insurance, VENDOR agrees to indemnify, defend (at CI TY’s option), and hold harmless CITY, its elected and appointed officers, agents, employees, representatives, and volunteers from and against any and all claims, demands, defense costs, liability, or consequential damages of any kind or nature arising out of or in connection with Vendor’s (or Vendor’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.

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

• Workers’ Compensation insurance as required by California statutes.

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

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

• Comprehensive Automobile Liability coverage with a combined single limit of not less that 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. 206

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Each insurance policy required by this Agreement shall contain the following clause:

“This insurance shall not be canceled, limited in scope or coverage, or non -renewed until after thirty (30) days prior written notice has been given to the City of Visalia, Purchasing Division, 707 W. Acequia, Visalia, CA 93291, with the exception of cancellation for non-payment of premium, in which case ten (10) days notice shall be given”

In addition, the Commercial general liability policy 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 insured as respects operations and activities of, or on behalf of the named insured, performed under contract with the City of Visalia.”

The successful bidder shall maintain the insurance for the life of the contract. Endorsements are to be received and approved by the City before work commences. Should Lessee cease to have insurance as required during any time, all work by Lessee pursuant to this agreement shall cease until insurance acceptable to the City is provided.

In addition to any other remedies CITY may have if LESSEE 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 LESSEE to stop work under this Agreement and/or withhold any payment(s) which become due to LESSEE hereunder until LESSEE demonstrates compliance with the requirements hereof; or

3. Terminate this Agreement.

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

F. Documents/Data
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 (if any), prepared by LESSEE 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 LESSEE will be at CITY’s sole risk and without liability to LESSEE. Further, any and all liability arising out of changes made to LESSEE’s deliverables under this Agreement by CITY or persons other than LESSEE is waived as against LESSEE, and the CITY assumes full responsibility for such changes unless the CITY has given LESSEE prior notice and has received from LESSEE written consent for such changes.
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G. Termination of Contract
The nature of this contract requires that the City and the Lessee must work closely as a mutually supporting team without conflict in recognition that the Lessee will be managing a real property asset. The proposed lease includes a sample clause for termination for cause. Separately City will have the right to terminate the lease on 180 days written notice if the City requires the use of the Property for a municipal purpose.

H. Right to Require Performance
No delay or failure by the City to require strict performance by Lessee of any term, condition, or covenant of this Lease shall operate as, or be construed to be, a waiver of any such term, condition, or covenant, nor shall any single or partial exercise by the City of any right or remedy hereunder preclude any other or future exercise of such right or remedy by the City. No waiver by the City shall be effective unless in a writing expressly stating it is a waiver and signed by the City. Any such waiver sha ll apply only to the specific instance described and shall not constitute a continuing waiver or a waiver of any succeeding breach or any other provision of this Lease I. Ethics in Public Contracting
Each proposer, by submitting a proposal, certifies that it is not a party to any collusive action or any action that may be in violation of the Sherman Antitrust Act by submitting a proposal, the proposer certifies that its proposal was made without fraud; that it has not offered or received any kickbacks or inducements from any other proposer in connection with the request for proposal; and that it has not conferred on any public employee, public member or public official having responsibility for this pro curement transaction, any payment, loan, subscription, advance, deposit of money, services, or anything of more than nominal value. The proposer further certifies that no relationship exists between itself and the City or another person or organization that interferes with fair competition or constitutes a conflict of interest with respect to a contract with the City of Visalia.

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

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

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

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

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

2. Proposer shall not discriminate against any employee or applicant for employment on the basis of race, religion, color, gender, age, handicap, national origin or ancestry, except when such a condition is a bona fide occupational qualification reasonably necessary for the normal operations of the proposer. The proposer agrees to post in conspicuous places, visible to the employees and applicants for employment, notices setting forth the provisions of this nondiscrimination clause.

3. Proposer, in all solicitations or advertisements for employees, placed by, or on behalf of the proposer, shall state that proposer is an Equal Opportunity Employer.
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L. Venue
Any contract resulting from this solicitation shall be governed by, and construed in accordance with, the laws of the State of California. Venue for any litigation arising out of the contract will be vested in Tulare County, California.

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

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

O. Executive Order N-6-22 – Russia Sanctions
On March 4, 2022, Governor Gavin Newsom issued Executive Order N-6-22 (the EO) regarding Economic Sanctions against Russia and Russian entities and individuals. “Economic Sanctions” refers to sanctions imposed by the U.S. government in response to Russia’s actions in Ukraine, as well as any sanctions imposed under state law. By submitting a bid or proposal, Contractor represents that it is not a target of Economic Sanctions. Should the State determine Contractor is a target of Economic Sanctions or is condu cting prohibited transactions with sanctioned individuals or entities, that shall be grounds for rejection of the Contractor’s bid/proposal any time prior to contract execution, or, if determined after contract execution, shall be grounds for termination b y the State.

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NON-COLLUSION AFFIDAVIT

TO: THE CITY OF VISALIA

The undersigned, in submitting a proposal for performing the following work by contract, being duly sworn, deposes and says:

That he/she has not, either directly or indirectly, entered into any agreement, participate in any collusion, or otherwise taken any action in restraint of free competition in connection with such contract.

Work to be Done: RFP No. 25-26-15 City of Visalia’s Open Ground Land Lease

Proposer’s Name: ______________________________________________________

Signature of Proposer: ___________________________________________________

Title: _________________________________________________________________

Business Address: ______________________________________________________

Place of Residence: _____________________________________________________

State of California

County of ________________________

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

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

Signature __________________________________ (Seal)

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WORKERS’ COMPENSATION INSURANCE CERTIFICATE

STATE OF CALIFORNIA )
) ss

CITY OF VISALIA )

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

Company: _________________________________________

Business Address: _________________________________________

Signature: _________________________________________

Name of Signing Official: _________________________________________

Title of Signing Official: _________________________________________

Date: _________________________________________

Company Seal (if any):

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EQUAL EMPLOYMENT OPPORTUNITY COMPLIANCE CERTIFICATE

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

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

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

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

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

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

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

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

Certification on Non-Segregated Facilities
The contractor hereby certifies that it does not or will not maintain segregated facilities not permit its employees to work at locations where facilities are segregated on the basis of race, color, religion, gender, national origin or political affiliation.

___________________________ _______________________________ __________ Name of Firm Authorized Signature Date

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

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

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

OWNERSHIP DISCLOSURE

____________________________________________________________________________ Name of Bidder/Proposer/Contractor/Lessee/Vendor/Supplier or Company

_________________________________________________________________________________________________________ Address

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

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

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

1. Have you or your company, or any agent on behalf of you or your company, made any political contributions of more than $ 500 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 Ci ty 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/Lessee/Supplier/Vendor/Company

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

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AMERICANS WITH DISABILITIES ACT COMPLIANCE CERTIFICATE

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

Company: ______________________________________________

Business Address: ______________________________________________

Signature: ______________________________________________

Name of Signing Official: ______________________________________________

Title of Signing Official: ______________________________________________

Date: _______________________________________

Company Seal (if any):

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STATE OF CALIFORNIA

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

CERTIFICATION

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

CONTRACTOR/BIDDER FIRM NAME

FEDERAL ID NUMBER
BY(Authorized Signature)

DATE EXECUTED

PRINTED NAME TELEPHONE NUMBER (Include Area Code)

( )
TITLE

CONTRACTOR/BIDDER FIRM’S MAILING ADDRESS

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

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

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

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

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

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

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

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IRAN CONTRACTING ACT CERTIFICATION
(Public Contract Code Section 2200 et seq.)

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

⃝ The Contractor is not:
(1) Identified on the current list of persons and entities engaged in investment activities in Iran prepared by the California Department of General Services in accordance with subdivision (b) of Public Contract Code Section 2203; or

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

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

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

Signature:____________________________________ Printed Name:_________________________

Title:______________________________________ Agency Name:_____________________________

Date:____________________

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

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(SAMPLE)

GROUND LEASE AGREEMENT

This Ground Lease Agreement made and entered into this _____ day of _________________, 2025 by and between the City of Visalia, a Charter Law City organized under its Charter and the Constitution and laws of the State of California, hereinafter referred to as LESSOR, and _________________, hereinafter referred to as LESSEE. For and in consideration of the payment of rent, taxes and other charges and of performance of the covenants and conditions hereinafter set forth, the receipt of which is hereby acknowledged, the parties agree as follows:

1. PREMISES
LESSOR is the owner of a parcel of land located in the City of Visalia, County of Tulare, State of California, more particularly described in Exhibit A annexed hereto and incorporated herein by reference (the "Premises"). As of the time of this lease agreement, Premises consists of 408 acres. Except as expressly provided to the contrary in this Agreement, reference to "Premises" is to the described land plus any described appurtenances, including any improvements now or hereafter located on the Premises, with the exception of the booster pumps located on the Premises, without regard to whether ownership of the improvements is in the LESSOR or in the LESSEE. The booster pumps shall remain the exclusive property and for the exclusive use of LESSOR at all times and are not included in this Ground Lease Agreement.

2. RESERVATION OF MINERAL RIGHTS TO LESSOR
All oil, gas, and mineral rights are expressly reserved from this Ground Lease Agreement.

3. USE OF PREMISES
LESSEE shall use said Premises for the purpose of growing those agricultural crops approved by the City Council and for no other purpose without the prior written consent of LESSOR. No animals of any kind may be brought onto the Premises. LESSEE shall conform to all Federal, State and Local rules and regulations. LESSOR does not warrant or guarantee that the Premises are fit for LESSEE's use hereunder.

4. TERM
The TERM of this Ground Lease Agreement shall be for a period of 1 year, commencing on ______ ___, 2025 and ending ______ ___, 2026 unless sooner terminated as provided for herein. The lease for all or a portion of the property can be extended in 1 year increments upon mutual agreement for up to a maximum term of five (5) years.

5. RENT
a. LESSEE shall pay Lease payment to LESSOR in the amount of __________ dollars ($X.XX) per acre rate (or rental rate) for each and every Lease term, due and payable on or before the last day of the second Month of the Lease term. Payment for the initial Lease term in the amount of $___________ is due on or before _____ ___, 2025. b. In the event LESSEE is delinquent in remitting the rent by the tenth (10th) day following the date due, throughout the entire Lease term, then the rent not paid when due shall bear interest at the rate of eighteen percent (18%) per annum from the date due until paid. c. Annual Rent Adjustment. Beginning on the first anniversary of the Commencement Date, and on each anniversary thereafter during the Lease term, the LESSOR (City) shall have the right to increase the per-acre rental rate. The annual adjustment shall be calculated based on the percentage increase, if any, in the Consumer Price Index for All Urban Consumers (CPI-U), U.S. 217

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City Average, All Items (1982–84=100), as published by the U.S. Bureau of Labor Statistics, comparing the most recently published index available at the time of adjustment with the index published for the same month in the preceding year.

If the CPI-U is discontinued or substantially modified, the parties shall substitute a comparable index published by a governmental agency. In no event shall the adjusted rent be less than the rent payable during the immediately preceding Lease year. LESSOR shall provide written notice of any rent adjustment at least thirty (30) days prior to the effective date of such adjustment.

6. TAXES AND ASSESSMENTS; "PUBLIC CHARGES"
a. Obligation of LESSEE - From and after the execution date of this Ground Lease Agreement, LESSEE shall be responsible for the payment of all assessments, fees, and other governmental or regulatory charges, general and special, ordinary and extraordinary, of any kind or nature whatsoever, applicable to LESSEE’s possessory interest in the leased premises and any improvements thereon, including but not limited to charges for public improvements, utility services, dust or weed abatement, or compliance-related costs. This obligation is in accordance with California Revenue and Taxation Code Section 107.6.

The City shall be responsible for the payment of real property taxes assessed on the underlying land. However, the LESSEE shall be solely responsible for any taxes or charges levied on LESSEE’s possessory interest, improvements, or operations conducted on the Premises, which may include possessory interest tax or assessments arising from LESSEE’s use of the land.

All such charges to be paid by LESSEE under this section are collectively referred to as “public charges.” Notwithstanding the foregoing, if any such public charges are by law payable in installments, LESSEE may elect to make such payments in accordance with the installment schedule, provided such payments are made before any penalties or interest are incurred.

In the event that any public charge relates to a fiscal period extending beyond the expiration or termination of this Ground Lease Agreement, such charge shall be apportioned between the City and LESSEE based on the portion of the fiscal period falling within the term of this Agreement.

b. Time of Payment - All payments to be made by LESSEE pursuant to the provisions hereof shall be made before any fine, penalty, interest or cost may be added thereto for the non- payment thereof; and the LESSEE shall furnish LESSOR within sixty (60) days after the dates when the same are payable as herein provided with official receipts or other evidence satisfactory to LESSOR that such public charges or excise on rents or other tax or assessments in lieu thereof as aforesaid has to the extent of the aforesaid, been paid.

c. Contest - LESSEE may contest the legal validity or amount of any public charges for which LESSEE is responsible under this Ground Lease Agreement and may institute such proceedings as LESSEE considers necessary. If LESSEE contests any such public charges, LESSEE may withhold or defer payment or pay under protest but shall protect LESSOR and the Premises from any lien by adequate surety bond or other appropriate security.

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d. Exclusions - LESSEE's obligation to pay public charges levied or charged against said possessory estate or buildings or improvements or against specified personal property, shall not include the following whatever they may be called: business income or profit taxes levied or assessed against LESSOR by federal, state or other governmental agencies; estate, succession, inheritance, or transfer tax of LESSOR; or corporation, franchise, or profit taxes imposed on any owner of the fee title of the Premises.

e. Evidence of Payment - The certificate, advise, or bill of the appropriate official designated by law to make or issue the same to receive payment of any such public charge shall be prima facie evidence that such public charge is due and unpaid at the time of the making or issuance of such certificate, advise, or bill; and the written receipt of such official shall be prima facie evidence that the public charge therein described has been paid. LESSEE shall authorize and instruct the assessing authority to forward to LESSEE all bills covering such paid public charge.

7. BUSINESS LICENSE
Possession of a City of Visalia Business License is required prior to commencement of work. LESSEE shall maintain a valid City of Visalia Business License throughout the term of this agreement.

8. ACCESS RIGHTS
a. LESSOR reserves the right to enter upon any portion of the leased Premises at any time during the Ground Lease Agreement term to inspect the same and to exercise any function that might arise concerning the operation of the property and to access Lessor's booster pumps. LESSEE shall provide the Project Manager with a key(s) to any lock that LESSEE places on any gate(s) restricting access to the Premises.

b. LESSEE, LESSEE's employees, agent and subcontractors shall have unrestricted access to the Premises without notice to LESSOR twenty-four (24) hours a day, seven (7) days a week.

9. INTERFERENCE
LESSEE shall operate in a manner that will not cause interference to LESSOR and other lessees. All operations by the LESSEE shall be in compliance with all Federal, State and local laws.

LESSEE shall not permit itself, its employees, agents, subcontractors or licensees to operate or use the Property if such use is likely to cause interference with LESSOR's operations. Such interference(s) shall be deemed a material breach by LESSOR. In the event interference occurs, LESSEE agrees to take all reasonable steps necessary to eliminate such interference forthwith.

10. UTILITIES
LESSEE shall be responsible for all utility charges. Any easement necessary for such power or other utilities will be at a location acceptable to LESSOR and the servicing utility company.

11. PUMPS and WATER
LESSEE acknowledges and accepts that all well pumps on site are currently inoperable and that booster pumps on site have been excluded from this Agreement for use by LESSOR, not LESSEE. LESSEE acknowledges that this Ground Lease Agreement does not require LESSOR to take any action in repairing or replacing the well pumps. LESSEE acknowledges that LESSOR assumes no responsibility for providing, delivering, or making irrigation water available for use on Premises.

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12. RECLAIMED WATER
LESSEE acknowledges that LESSOR assumes no responsibility for providing, delivering, or making recycled water available for use on premises. Nonetheless, LESSOR may, at its sole and complete discretion, provide reclaimed water to be used on the PREMISES when available, at a rate determined by LESSOR, and subject to Paragraph 34 below. Said water shall be delivered to site piping at the request of Lessee. LESSEE has no obligation to utilize reclaimed water. LESSEE agrees to hold LESSOR harmless for any damage caused by the use of reclaimed water by Lessee. If expressly authorized in writing by LESSOR, reclaimed water may be used by LESSEE for limited non-irrigation purposes, such as dust control, and only in full compliance with all applicable federal, state, and local laws and regulations.

LESSOR reserves the right to terminate delivery of reclaimed water to LESSEE if LESSEE fails to comply with applicable recycled water regulations.

13. MODIFICATIONS
It is further agreed by and between the parties hereto that any alterations, modifications, or additions on the leasehold Premises by LESSEE can only be instituted by first obtaining the written approval of LESSOR of the plans, locations and specifications of said change. LESSEE agrees to provide LESSOR one set of ''as built" plans for said changes within 60 days of completion. No leasehold encumbrance or deed of trust shall be permitted as a result of LESSEE's actions on the leasehold Premises.

14. SIGNS
LESSEE agrees that it will not paint or erect any signs on the Premises unless such signs are first approved in writing by the LESSOR. Any signs located on the Premises shall be in compliance with the City of Visalia's sign and zoning ordinances as the same shall be in effect from time to time.

15. APPEARANCE
LESSEE shall maintain their facilities to the reasonable satisfaction of the LESSOR and in such a manner that said facilities will be neat and well kept in appearance.

16. LESSOR'S MAINTENANCE
LESSOR shall have no obligation for any maintenance on Premises.

17. LESSEE'S MAINTENANCE
LESSEE shall be responsible for the shredding and tilting of cotton stalks and other agricultural stubble during the term of the Ground Lease Agreement including those stalks and stubble from the final crop of the lease term of said Ground Lease Agreement, and in accordance with applicable State and County of Tulare statutes, ordinances and regulations. LESSEE agrees that no burning of stubble or any other such matter shall take place on premises during said Ground Lease Agreement term.

18. CONDEMNATION
LESSOR shall also have the right to terminate this Lease as of the date of condemnation of the Property.

If the Premises are taken under any right of condemnation, LESSEE shall not be entitled to any and all awards of payment made in the condemnation proceedings in respect to any damage to LESSEE's leasehold interests in the Premises and the improvements thereon.

19. INSURANCE - LIABILITY
Throughout the term, at LESSEE's sole cost and expense, LESSEE shall keep or cause to be kept in force, for the mutual benefit of LESSOR and LESSEE, comprehensive broad form general public liability insurance against claims and liability for personal Injury, death, or property damage arising from the use, 220

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occupancy, disuse, or condition of the Premises, improvements, or adjoining areas or ways, providing protection for bodily injury or death to anyone person, at least $1,000,000 for anyone accident or occurrence, and at least $1,000,000 for property damage. Also throughout the Ground Lease Agreement terms, at LESSEE's sole cost and expense, LESSEE shall keep or cause to be kept in force, workers' compensation insurance with statutory limits and employer's liability insurance with limits of not less than $1,000,000 per accident.

20. INSURANCE - GENERAL REQUIREMENTS
All insurance required by express provision of this Ground Lease Agreement shall be carried only in responsible insurance companies licensed to do business in the State of California. All such policies shall be nonassessable and shall contain language, to the extent obtainable, to the effect that (1) any loss shall be payable notwithstanding any act or negligence of LESSOR that might otherwise result in a forfeiture of the insurance, (2) the insurer waives the right of subrogation against LESSOR and against LESSOR's agents and representatives, (3) the policies are primary and noncontributing with any insurance that may be carried by LESSOR, and (4) they cannot be canceled or materially changed except after 30 days' notice by the insurer to LESSOR or LESSOR's designated representative. (5) LESSOR shall be named an additional insured. LESSEE shall furnish LESSOR with binders representing all insurance required by this Ground Lease Agreement. LESSEE may effect for its own account any insurance not required under this Ground Lease Agreement. LESSEE may provide by blanket insurance covering the Premises and any other location or locations any insurance required or permitted under this Ground Lease Agreement provided it is acceptable to all mortgages. LESSEE shall deliver to LESSOR, in the manner required for notices, copies or certificates of all insurance policies required by this Ground Lease Agreement, together with evidence satisfactory to LESSOR of payment required for procurement and maintenance of the policy, within the following limits:

a. For insurance required at the commencement of this Ground Lease Agreement, within 30 days after the execution of this Ground Lease Agreement;

b. For insurance becoming required at a later date, at least 15 days before the requirement takes effect, or as soon thereafter as the requirement, if new, takes effect.

c. For any renewal or replacement of a policy already in existence, at least 30 days before expiration or other termination of the existing policy.

If LESSEE fails or refuses to procure or to maintain insurance as required by this Ground Lease Agreement or fails or refuses to furnish LESSOR with required proof that the insurance has been procured and is in force and paid for, LESSOR shall have the right at LESSOR's election and on 5 day notice, to procure and maintain such insurance. The premiums paid LESSOR shall be treated as added rent due from LESSEE with interest at the rate of 18 percent per year, to be paid on the first day of the month following the date on which the premiums, stating the amounts paid and the names of the insurer or insurers, and interest shall run from the date of the notice.

21. INDEMNIFICATION
LESSEE hereby agrees to and shall protect, indemnify, and hold harmless the LESSOR and all officers, agents, representatives, and employees thereof from any and all liability, claims, or damages of whatsoever kind or character, including attorneys' fees and costs of all types incurred in defense of any of the said parties from said claims or liability, because of or arising out of, directly or indirectly, the acts or omissions of the LESSEE, LESSEE's independent contractors, employees, representatives, agents and 221

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invitees, and the passive or active negligent acts or omissions of the LESSOR or its officers, agents, representatives, and employees while acting within the scope of their duties regarding work to be performed pursuant to this Ground Lease Agreement. Said indemnification and hold harmless provisions shall be in full force and effect regardless of whether or not there shall be insurance policies covering and applicable to such damages, claims, or liability. This agreement shall be binding upon the LESSEE whether or not there are any allegations of fault, negligence, or liability of the indemnities hereunder.

22. DEFINITION OF DEFAULT BY LESSEE
Each of the following events shall be a default by LESSEE and a breach of this Ground Lease Agreement. a. Abandonment or surrender of the Premises or of the leasehold estate, or failure or refusal to pay when due any installment of rent or any other sum required by this Ground Lease Agreement to be paid by LESSEE, including but not limited to the Public Charges set forth herein, or to perform as required or conditioned by any other covenant or condition of this Ground Lease Agreement.

b. The subjection of any right or interest of LESSEE to attachment, execution, or other levy, or to seizure under legal process, if not released within 10 days provided that the foreclosure of any mortgage permitted by provisions of this Ground Lease Agreement relating to purchase or construction improvements shall be construed as a default within the meaning of this paragraph.

c. The appointment of a receiver to take possession of the Premises, or improvements, or of LESSEE's interest in the Leasehold estate, or of LESSEE' operation on the Premises for any reason, including but not limited to, assignment for benefit of creditors or voluntary or involuntary bankruptcy proceedings, but not including receivership (1) pursuant to administration of the estate or any deceased or incompetent LESSEE, or (2) instituted by LESSOR, the event of default being not the appointment of a receiver at LESSOR's instance, but the event justifying the receivership, if any.

d. An assignment by LESSEE for the benefit of creditors or the filing of a voluntary or involuntary petition by or against LESSEE under any law for the purpose for adjudication of LESSEE's liabilities; or for reorganization, dissolution, or arrangement on account of or to prevent bankruptcy or insolvency; unless the assignment or proceeding, and all consequent orders, adjudication, custody, and supervision are dismissed, vacated, or otherwise permanently stayed or terminated within 30 days after the assignment, filing or other initial event.

e. Failure to maintain said Premises as required pursuant to the terms of the Ground Lease Agreement.

f. Failure to provide insurance binders/certificates pursuant to paragraphs 19 and 20.

23. NOTICE OF DEFAULT
As a precondition to pursuing any remedy for an alleged default other than a failure to provide adequate insurance as described in paragraphs 19 and 20, by LESSEE, LESSOR shall, before pursuing any remedy, give notice of default to LESSEE and to all qualifying subtenants whose names and addresses were previously given to LESSOR in a notice or notices from LESSEE. A qualifying subtenant is a subtenant in possession under an existing sublease which is proper under this Ground Lease Agreement. If the 222

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alleged default is nonpayment of rent, taxes, or other sums to be paid by LESSEE as provided in the paragraph on rent, or elsewhere in this Ground Lease Agreement directed to be paid as rent, LESSEE shall have 10 days after notice is given to cure the default. For the cure of any other default, LESSEE shall act promptly and diligently after the notice commence to cure the default and shall have 10 days after notice is given to complete the cure plus any additional period that LESSOR agrees is reasonably required for the curing of the default. After expiration of the applicable time for curing a particular default, or before the expiration of that time in the event of emergency, LESSOR may at LESSOR's election, but is not obligated to, make any payment required of LESSEE under this Ground Lease Agreement or perform or comply with any covenant or condition imposed on LESSEE under this Ground Lease Agreement and the amount so paid, plus the reasonable cost of any such performance or compliance, plus interest on such sum at the rate of 12% per year from the date of payment, performance, or compliance (herein called "Act") , shall be deemed to be additional rent payable by LESSEE within 30 days following the giving of notice of the Act. No such Act shall constitute a waiver of default or of any remedy for default or render LESSOR liable for any loss or damage resulting from any such Act.

24. REMEDIES IN THE EVENT OF DEFAULT
If any default by LESSEE shall continue uncured, following notice of default as required by this Ground Lease Agreement, for the period applicable to the default under the applicable provision of this Ground Lease Agreement, LESSOR has the following remedies in addition to all other rights and remedies provided by law or equity, to which LESSOR may resort cumulatively or in the alternative.

a. LESSOR may at LESSOR's election terminate this Ground Lease Agreement by giving LESSEE Notice of Termination. On the giving of the Notice, all of LESSEE's right in the Premises and in all improvements shall terminate in the time frame set forth in the Notice of Termination. Promptly after notice of termination, LESSEE shall surrender and vacate the Premises and all improvements in broom-clean condition, and LESSOR may reenter and take possession of the Premises and all remaining improvements and eject all parties in possession or eject some and not others or eject none; provided that no subtenant qualifying under nondisturbance provisions of this Ground Lease Agreement shall be ejected. Termination under this paragraph shall not relieve LESSEE from the payment of any sum then due to LESSOR or from any claim for damages previously accrued or then accruing against LESSEE.

b. LESSOR may at LESSOR's election reenter the Premises, and, without terminating this Ground Lease Agreement, at any time and from time to time relet the Premises and improvements or any part of parts of them for the account and in the name of the LESSEE or otherwise. Any reletting may be for the remainder of the term or for a longer or shorter period.

LESSOR may execute any leases made under this provision either in LESSOR's name or in LESSEE's name and shall be entitled to all rents from the use, operation, or occupancy of the Premises or improvements or both. LESSEE shall nevertheless pay to LESSOR on the due dates specified in this Ground Lease Agreement the equivalent of all sums required of LESSEE under this Ground Lease Agreement, plus LESSOR's expenses, less the avails of any reletting or attornment. No act by or on behalf of LESSOR under this provision shall constitute a termination of this Ground Lease Agreement unless LESSOR gives LESSEE notice of termination.

c. LESSOR may at LESSOR's election use LESSEE's personal property and trade fixtures or any of such property and fixtures without compensation and without liability for use or damage, or store them for the account and at the cost of LESSEE.
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d. LESSOR shall be entitled to LESSOR's election to each installment of rent or to any combination of installments for any period before termination, plus interest at the rate of 18 percent per year from the due date of each installment. Avails of reletting or attorned subrents shall be applied, when received, as follows: (1) to LESSOR to the extent that the avails for the prior covered do not exceed the amounts due and charged to LESSEE for the same period, and (2) the balance to LESSEE. LESSOR shall make reasonable efforts to mitigate LESSEE's liability under this provision. LESSOR shall be entitled to LESSOR's election to damages in the following sums: (1) all amounts that would have fallen due as rent between the time of termination of this Ground Lease Agreement and the time of the claim, judgment, or other award, 1ess the avails of all relettings and attornments and less all amounts by which LESSOR shall reasonably have mitigated those rental losses, plus interest on the balance at the rate of 12 percent per year, and (2) the "worth" at the time of the claim, judgment, or other award, of the amount by which the unpaid rent for the balance of the term exceeds the then fair rental value of the Premises minus any amounts of rental loss which LESSEE proves could be reasonably avoided. "Worth", as used in this provision, is computed by discounting the total at the discount rate of the Federal Reserve Bank of San Francisco a the time of the Claim, Judgment, or award, plus one percent interest.

25. WAIVER OF DEFAULT
No waiver of default shall constitute a waiver of any other breach or default, whether of the same or any other covenant or condition. No waiver, benefit, privilege, or service voluntarily given or performed by either party shall give the other any contractual right by custom, estoppel, or otherwise. The subsequent acceptance of rent pursuant to this Ground Lease Agreement shall not constitute a waiver of any preceding default by LESSEE other than default in the payment of the particular rental payment.

26. ASSIGNMENT AND SUBLETTING
The LESSEE may not assign or otherwise transfer this Ground Lease Agreement or sublet any portion of said Premises without the prior written consent of LESSOR.

27. ATTORNEYS' FEES
If either party brings any action or proceeding to enforce, protect, or establish any right or remedy, the prevailing party shall be entitled to recover reasonable attorneys' fees and costs. Non-judicial, alternative dispute resolution is not an action or proceeding for the purpose of this provision.

28. NOTICES
As used in this Ground Lease Agreement, notice includes but is not limited to the communications of notice, request, demand, approval, statement, report, acceptance, consent, waiver, and appointment. No notice of the exercise of any option or election is required unless the provision giving the election or option expressly requires notice. Unless the provision of this Ground Lease Agreement on rent direct otherwise, rent shall be sent in the manner provides for giving notice.

a. Writing - All Notices must be in writing, provided that no writing other than the check or other instruments representing the rent payment itself need accompany the payment of rent.

b. Delivery - Notice is considered given either (a) when delivered in person to the recipient named as below, or (b) on the date shown on the return receipt after deposit in the United States mail in a sealed envelope or container, either registered or certified mail, return receipt 224

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requested, postage and postal charges prepaid, addressed by name and address to the party or persons intended as follows:

Notice to LESSOR: City of Visalia
707 E. Acequia
Visalia, CA 93291
Phone No. 559-713-4466

Copy To:

Public Works Department
7579 Ave 288
Visalia, CA 93277

Notice to LESSEE: _____________________
_____________________
_____________________
_____________________

c. Change of recipient or address - Either party may, by notice given at any time or from time to time, require subsequent notices to be given to another individual person, whether a party or an officer or representative, or to a different address, or both, Notices given before actual receipt or notice of change shall not be invalidated by the change.

d. Recipient Named - Each recipient named must be an individual person. If more than one recipient is named, delivery of notice to any one such recipient is sufficient. If none of the recipient named in the latest designation of recipient is available for delivery in person, and if the notice addressed by mail to each recipient named in the latest designation of recipient is returned to the sender undelivered, notice shall be sufficient if sent by mail as above to the party as named in this Ground Lease Agreement, unless the name or identity of the party has changed as permitted in this Ground Lease Agreement and proper notice of the change has been given, in which event the notice shall be sufficient if sent by mail as above to the party named in the latest designating party, and the notice is considered given when the first attempt to give notice was properly made.

29. REGULATIONS AND SPECIAL CONDITIONS
LESSEE shall not conduct, or allow to be conducted upon the Premises, any dangerous or hazardous activities, or any activities considered to be a nuisance to its neighbors.

30. CONSTRUCTION
Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement shall be prohibited or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity without invalidating the remainder of such provision or any other provision of this Agreement.

31. BINDING OF SUCCESSORS
Subject to the provisions of this Ground Lease Agreement on assignment and subletting, each and all of the covenants and conditions of this Ground Lease Agreement shall be binding on and shall inure to the 225

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benefit of the heirs, successors, executors, administrators, assigns, and personal representatives of the respective parties.

32. SURRENDER ON TERMINATION
At the expiration or earlier termination of the term, LESSEE shall surrender to LESSOR the possession of the Premises. Surrender or removal of improvements, fixtures, trade fixtures, and improvements shall be as directed in provisions of this Ground Lease Agreement on ownership of improvements at termination.

LESSEE shall leave the surrendered Premises properly disked, leveled, and cleared of debris and weeds and any other property in good broom clean condition except as provided to the contrary in provisions of this Ground Lease Agreement on maintenance and repair of improvements. All property that LESSEE is required to surrender shall become LESSOR's property at the termination of the Ground Lease Agreement. All property that LESSEE is not required to surrender but that LESSEE does abandon shall, at LESSOR's election, become LESSOR's property at termination. If LESSEE fails to surrender the Premises at the expiration or sooner termination of this Ground Lease Agreement, LESSEE shall defend and indemnify LESSOR for all liability and expense resulting from the delay or failure to surrender, including, without limitation, claims made by any succeeding tenant founded on or resulting from LESSEE's failure to surrender.

33. HOLDING OVER
This Ground Lease Agreement shall terminate without further notice at expiration of the term. Any holding over by LESSEE after expiration shall not constitute a renewal or extension or give LESSEE any rights in or to the Premises, except that LESSEE's tenancy shall thereafter be on a month-to-month term with rent being payable on the first day of each month, rental payment being one twelfth (1/12) of the amount of annual rent, and except as otherwise expressly provided in this Ground Lease Agreement.

34. CURRENT AND FUTURE REGULATIONS
This Ground Lease Agreement and all rights conferred thereby shall at all times be subject to current and future regulations governing any and all activities at the Visalia Water Reclamation Facility.

35. MISCELLANEOUS
a. This Ground Lease Agreements contains the entire agreement between the parties. No promise, representation, warranty, or covenant not included in this Ground Lease Agreement has been or is relied on by either party. Each party has relied on his own examination of this Ground Lease Agreement, counsel of his own advisors and the warranties, representations, and covenants in the Ground Lease Agreement itself. The failure or refusal of either party to inspect the Premises or improvements, to read the Ground Lease Agreement or other documents, or to obtain legal or other advice relevant to this transaction constitutes a waiver of any objection, contention, or claim that might have been based on such reading, inspection or advise.

b. If any provision of this Ground Lease Agreement is invalid or unenforceable with respect to any party, the remainder of this Lease or the application of such provision to persons other than those as to whom it is held invalid or unenforceable, shall not be affected and each provision to this Ground Lease Agreement shall be valid and enforceable to the fullest extent permitted by law.

c. This Ground Lease Agreement shall be binding on and inure to the benefit of the successors, transferees in title, and permitted assignees of the respective parties. 226

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d. This Ground Lease Agreement shall be governed by the laws of the State of California.

e. In any case where the approval or consent of one party hereto is required, requested or otherwise to be given under this Ground Lease Agreement, such party shall not unreasonable delay or withhold its approval or consent.

f. All Riders and Exhibits annexed hereto form material parts of this Ground Lease Agreement.

g. Time of the Essence: Time is of the essence in the performance of each provision of this Ground Lease Agreement.

h. Implementation Clause: To carry into full force and effect each and every agreement, condition, covenant and terms contained in this Ground Lease Agreement, each party agrees that he and she will execute and deliver any and all deeds, assignments, releases, receipts and other documents reasonably required by the other without undue delay or expense.

i. Cooperation: LESSOR and LESSEE agree to provide any further documentation and to cooperate in any way necessary to carry out the basic intent of the Ground Lease Agreement.

j. Venue: The parties agree that the contract is to be performed in Tulare County, and any action arising out of the contract will be venued there or in the Eastern District of the United States District Courts. The parties agree to submit themselves to the jurisdiction of the court in any action relating to this Ground Lease Agreement or the enforcement or interpretation hereof.

LESSEE expressly waives any right to remove any action from Tulare County which he might have pursuant to Section 394 of the Code of Civil Procedure.

k. Effective Date: This Ground Lease Agreement shall be and become effective as of the date its execution as set forth above.

l. Waiver: No waiver of any breach of any term, condition or provision of this Ground Lease Agreement shall constitute a waiver of any other breach of any other term, condition or provision. No consent of one party to any departures by the other shall be effective unless such waiver shall be in writing and shall be signed by the non-waiving party or a duly authorized agent thereof and the same shall be effective only for a period, on the conditions and for the specific instances and purposes specified in such writing. No notice to or demand to the non- waiving party in any case shall entitle the non-waiving party to any other for further notice or demand in similar or other circumstances.

m. Execution in Counterparts: This Ground Lease Agreement may be executed in counterparts, each of which shall be deemed an original, but all which taken together shall constitute but one and the same instrument.

n. Title or Captions: Titles or captions contained in this Ground Lease Agreement are inserted only as a matter of convenience and for reference, and in no way define, limit, extend or describe the scope of the Lease or the intent of any provision hereof.

IN WITNESS WHEREOF, this Agreement is executed on the day and year first above written. 227

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LESSEE

Dated:___________________ By_________________________________________________

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

CITY OF VISALIA

City Manager_________________________________ Date:_______________________

Risk Manager________________________________ Date:______________________

Approved as to Form

City Attorney________________________________ Date:_______________________

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City of Visalia Purchasing Division
707 W. Acequia Avenue
Visalia, CA 93291 (559)713-4334
[email protected]

CITY OF VISALIA, CA

REQUEST FOR BIDS
RFP-25-26-15

CITY OF VISALIA OPEN GROUND LAND LEASE
ADDENDUM NO. 1
Issued: February 26, 2026
Submittals Due: Thursday, April 2, 2026, at 1:00 P.M.

Addendum No. 1 is being issued to correct the property location description. This Addendum must be signed and submitted with proposal.

ITEM 1: CORRECTION TO PROPERTY LOCATION DESCRIPTION:

The RFP 25-26-15 document currently provides the following description:

The City of Visalia is soliciting proposals from qualified individuals or entities to lease approximately 408 acres of City-owned open land. The property is located east of State Highway 99 and along State Highway 198 in the City of Visalia, County of Tulare, and is available under a long -term Ground Lease agreement.

The selected lessee will be responsible for managing the Premises in a manner that preserves its condition, complies with all applicable laws, and aligns with the terms of the lease. The Premises includes all land and appurtenances unless otherwise specified. Booster pumps located on the site are excluded from the lease and remain the exclusive property of the City. This lease represents an opportunity for qualified parties to secure use of City-owned land under a mutually beneficial agreement.

And shall hereby be amended to read:

The City of Visalia is soliciting proposals from qualified individuals or entities to lease approximately 408 acres of City -owned open land. The property is located just west of State Highway 99 and south of State Highway 198 in the City of Visalia, near the Visalia Water Reclamation Facility and is available under a long -term Ground Lease agreement. The selected lessee will be responsible for managing the Premises in a manner that preserves its condition, complies with all applicable laws, and aligns with the terms of the lease. The Premises includes all land and appurtenances unless otherwise specified. Booster pumps located on the site are excluded from the lease and remain the exclusive property of the City. This lease represents an opportunity for qualified parties to secure use of City -owned land under a mutually beneficial agreement.

END OF ADDENDUM NO. 1
/s/ Purchasing Division
(559) 713-4334
RESPONDENT to sign and submit with PROPOSAL
Firm: Date:

By:

Bidder’s Signature
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Addendum #2 Page 1 of 2
City of Visalia Purchasing Division
707 W. Acequia Avenue
Visalia, CA 93291 (559)713-4334
[email protected]

CITY OF VISALIA, CA

REQUEST FOR BIDS
RFP-25-26-15

CITY OF VISALIA OPEN GROUND LAND LEASE

ADDENDUM NO. 2

Issued: March 27, 2026
Submittals Due: Thursday, April 2, 2026, at 1:00 P.M.

Addendum No. 2 is being issued to respond to questions that have been received. This addendum becomes part of the RFP document and must be signed and submitted with proposal.

ITEM 1: QUESTIONS AND RESPONSES

1. No reclaimed water will be utilized on open ground? Response: Correct. No reclaimed water will be made available to the subject property.

2. Is the reclaimed water used for the adjacent pecan orchard? Response: Currently, yes, reclaimed water is being used on the adjacent pecan orchard, but the City makes no guarantee of ongoing use.

3. Is there a current soil sample? Response: No

4. Is there a base value for crop insurance? Response: No

5. Is it Mid-Kaweah or Greater Kaweah? Response: The subject property is a part of the Mid Kaweah Groundwater Sustainability Agency (MKGSA).

6. Who is responsible for the Fees associated with GSA and If Farmer pays Fees and manages it, will it be transfer to the Farming entity's dashboard account? Response: The Lessee will be responsible for all fees related to net evapotranspiration (ET) on the property. The City does not intend to transfer access to the subject property in the water dashboard, but is willing to consider proposals that ensure groundwater levels are increased in priority areas. Priority areas include the eastern side of Visalia, within the city limits, and/or the subject property.

7. No well available? Response: No well is available, and no groundwater pumping will be permitted.

8. Would it be Ok for a proposer to submit multiple proposed options? Response: Yes

9. Which canal runs along the property? Response: The south fork of Persian Ditch

10. Is it flood release or does it get water? Response: In some years, there may be access to flood release water, but the City makes no guarantee to its availability.

11. What is current crop? Response: Wheat

12: Will ET credits and/or debts go to Lessee or Lessor? Response: Lessee will be responsible for all fees related to net evapotranspiration (ET) on the subject property. Evapotranspiration credits and/or debits may be available to the Lessee depending on the ability to show an increase in groundwater levels in priority areas. The City will not provide groundwater pumping supply, however the City is willing to negotiate and may consider making Native Yield available to the Lessee.

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City of Visalia Open Ground Land Lease RFP-25-26-15
Addendum #2 Page 2 of 2

13. The current RFP states that irrigation is strictly prohibited. However, if the Lessee is able to provide its own water supply—without impacting the City’s water account or water allocation—would limited irrigation be considered permissible? Under this scenario, the Lessee would:
• Utilize only privately secured water sources
• Ensure there is no impact to the City’s water resources or allocations • Comply fully with all applicable SGMA regulations
• Assume full responsibility for managing and maintaining the water account associated with the parcels
• Cover all costs, fees, and regulatory requirements related to water use

This request would likely require an amendment to the RFP to allow minimal irrigation and any necessary modifications to existing water infrastructure, subject to prior City approval.

Response: While the intent under this RFP is to lease the subject property for dry-farming purposes, the City is open to proposals as indicated above that do not require the use of, or have impacts to, the City’s water allocations.

END OF ADDENDUM NO. 2
/s/ Purchasing Division
(559) 713-4334
RESPONDENT to sign and submit with PROPOSAL

Firm: Date:

By:

Bidder’s Signature
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Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 26-0068 Agenda Date: 8/3/2026 Agenda #: 7.

Agenda Item Wording:

Ordinance adoption - Second reading and adoption of Ordinance No. 2026-05, adding Chapter

4.04, “Commercial Cannabis Activity” to the Visalia Municipal Code; rescinding Chapter 5.66; amending Chapter 8.64; and approving Zoning Text Amendment No. 2026-01, and adoption of Resolution No. 2026-42, establishing the application and selection process for both storefront and non-storefront retail cannabis business license applications.

Agenda Date: 08/03/2026
Prepared by:

Devon Jones, Economic Development Manager, [email protected], (559) 713-4190 Paul Bernal, Planning and Community Preservation Director, [email protected], (559) 713- 4025
Department Recommendation: Staff recommends that the City Council conduct the second reading and adopt Ordinance No. 2026-05 and adopt Resolution No. 2026-42.

Summary:

On July 20, 2026, the City Council held a public hearing to consider the first reading of Ordinance No. 2026-05, adding Chapter 4.04, “Commercial Cannabis Activity” to the Visalia Municipal Code, rescinding Chapter 5.66, amending Chapter 8.64, and approving Zoning Text Amendment No. 2026- 01 to establish the regulatory framework for Commercial Cannabis businesses to operate within the City. Further, Council adopted Resolution No. 2026-42, establishing the application and selection process for both storefront and non-storefront retail cannabis business license applications, with a change to the required annual Community Benefits Agreement minimum cash value amount to $75,000 or 1.5% of annual gross receipts, whichever is greater.

At the meeting, no one from the public spoke. After closing the public hearing, the City Council voted (5-0) to conduct the First Reading of Ordinance No. 2026-05 and adopt Resolution No. 2026-42 with the proposed amendment. The second reading of the Ordinance is the final action the City Council takes in order for Ordinance No. 2026-05 to take effect, and given the revision made to Resolution No. 2026-42, staff is bringing the amended resolution for Council’sadoption. Following the second reading and Council adoption, the ordinance will go into effect 30 days following adoption of the second reading.

Background Discussion:

Although Ordinance No. 2026-05 is worded to establish the number of Cannabis businesses permitted to operate within the City at zero, the adoption of Ordinance No. 2026-05 establishes the regulatory framework for a Cannabis Business program but would not allow any such businesses to operate within the City until such time City Council passes a resolution changing that amount.

Additionally, staff will return with a separate resolution that will establish the Cannabis Business Fee Visalia City Council Printed on 7/31/2026Page 1 of 4
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Program upon completion of the fee analysis process with consultant, HdL.

Fiscal Impact including annual maintenance and operating costs: None at this time Prior Council Action:
· On July 20, 2026, Council held a public hearing and introduced the first reading of Ordinance No. 2026-05 and adopted an amended Resolution No. 2026-42 establishing the application and selection process for both storefront and non-storefront retail cannabis business license applications.
· On March 16, 2026, Council provided additional input re: the establishment of a cannabis business ordinance and corresponding business application and selection review process and authorized amending the existing sole source contract with HdL to provide assistance with the preparation of a fee nexus study to determine all applicable fee amounts in the City’scannabis business program and appropriated $12,000 from the General Fund for this contract amendment.
· On July 21, 2025, Council provided additional input re: the establishment of a cannabis business ordinance and corresponding business application and selection review process. · On May 5, 2025, Council provided initial input on draft cannabis business ordinance and corresponding business application and selection review process. · On 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 and amend the existing contract with HdL to include the additional scope of work totaling $24,600 and appropriate an additional $5,000 from the General Fund.
· On July 15, 2024, Council adopted an amended Resolution 2024-24 to place a cannabis tax measure on the November 2024 general election ballot.
· On June 17, 2024, Council conducted the second reading and adoption of Ordinance No. 2024-06, adding Chapter 3.14 (Cannabis Business Tax) to Title 3 of the Visalia Municipal Code to establish a tax on cannabis business activities within the city. · On June 3, 2024, Council conducted the first reading of Ordinance No. 2024-06, adding Chapter 3.14 (Cannabis Business Tax) to Title 3 of the Visalia Municipal Code to establish a tax on cannabis business activities within the city and adopted Resolution 2024-24 to place a cannabis tax measure on the November 2024 general election ballot. · On May 20, 2024, Council authorized staff to present an ordinance to include a local cannabis tax measure for voter consideration on the Tulare County November 2024 General Election ballot.
· On May 6, 2024, Council authorized staff to continue working with HdL to develop a local cannabis tax measure and ballot language to be included on the November 2024 ballot and appropriated $20,000 from the general fund for the development of tax measure informational materials.
· On November 20, 2023, Council conducted the second reading and adoption of Ordinance No. 2023-13 for Zoning Text Amendment No. 2023-02, a request by the City of Visalia to amend Visalia Municipal Code Chapter 17.25, add Section 17.32.167, amend Chapter 8.64, Visalia City Council Printed on 7/31/2026Page 2 of 4
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File #: 26-0068 Agenda Date: 8/3/2026 Agenda #: 7.
amend Visalia Municipal Code Chapter 17.25, add Section 17.32.167, amend Chapter 8.64, and add Chapter 5.66 in order to address upcoming state mandated changes as a result of the passage of SB 1186, and to establish objective standards for permitting delivery only medical marijuana retail establishments within the City of Visalia. · On November 11, 2023, Council authorized the City Manager to award a contract to HdL Companies for an amount not to exceed $35,000, with a total budget of $40,000. · On November 6, 2023, the City Council authorized the City Manager to award a contract to FM3 Research for an amount not to exceed $39,500, with a total budget of $45,000. · On July 17, 2023, Council directed staff to initiate a zoning ordinance update to implement reasonable zoning regulations in response to SB 1186 and hire a consultant, via a sole source contract, to assist staff with the preparation of a potential tax measure specifically for cannabis sales for the 2024 general election and to identify potential revisions to cannabis regulations in Visalia.

Alternatives: Per Council direction
Recommended Motion (and Alternative Motions if expected):

I move to conduct the second reading and adopt Ordinance No. 2026-05 and adopt Resolution No. 2026-42.

Environmental Assessment Status: Exempt from further review under the California Environmental Quality Act (CEQA) Guidelines section 15061(b)(3) (common sense exemption).

CEQA Review: The project is exempt from further environmental review under the CEQA Guidelines section 15061(b)(3), which states that the project is exempted from CEQA if the activity is covered by the common sense exemption that CEQA applies only to projects that have the potential for causing significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.

Deadline for Action: 08/03/2026
Attachments:

1. Attachment 1: Ordinance No. 2026-05

2. Attachment 2: Resolution No. 2026-42

3. Map 1: Final buffer map

4. Map 2: Visalia Industrial Park Overlay
Strategic Goal: Indicates which City Strategic Goal(s) this item supports. Check all that apply. ☒
Economic
Vitality
☐
Organizational
Excellence
☐
Fiscal
Strength
☐
Infrastructure &
Growth
☐
Quality of
Life
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Economic
Vitality
☐
Organizational
Excellence
☐
Fiscal
Strength
☐
Infrastructure &
Growth
☐
Quality of
Life
Visalia City Council Printed on 7/31/2026Page 4 of 4
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ORDINANCE NO. 2026-05

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF VISALIA AMENDING VARIOUS SECTIONS OF THE VISALIA MUNICIPAL CODE INCLUDING CHAPTER 4.04 IN TITLE 4, ENTITLED “COMMERCIAL CANNABIS ACTIVITY”, RESCINDING CHAPTER 5.66, AMENDING CHAPTER 8.64, AND APPROVING ZONING TEXT AMENDMENT NO. 2026-01, AMENDING TITLE 17 TO INCLUDE CANNABIS RELATED BUSINESS USE TYPES, CITYWIDE.

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

SECTION 1. Chapter 5.66 of the Visalia Municipal Code is hereby rescinded in its entirety.

SECTION 2. Title 4 of the Visalia Municipal Code is hereby amended to add Chapter 4.04 as follows:

CHAPTER 4.04

COMMERCIAL CANNABIS ACTIVITY

4.04.010 Title

4.04.020 Purpose and Intent

4.04.030 Legal Authority

4.04.040 Commercial Cannabis Activities Prohibited Unless Specifically Authorized by this Chapter

4.04.050 Compliance with State and Local Laws and Regulations

4.04.060 Definitions

4.04.070 Cannabis Business License Required to Engage in Cannabis Business Activity

4.04.080 Evidence of Cannabis Owners and/or Employees Background Check Required

4.04.090 Personnel Prohibited from Holding a License or from Employment with a Cannabis Business Licensee

4.04.100 Maximum Number and Type of Authorized Cannabis Businesses Licensed

4.04.110 Community Benefits

4.04.120 City’s Reservation of Rights

4.04.130 Procedure Guidelines and Review Criteria to Evaluate Cannabis Business Applications

4.04.140 Exercise of a Cannabis Business License

4.04.150 Scope of Approval

4.04.160 Reapplying for a Cannabis Business License

4.04.170 Term of a Cannabis Business License.

4.04.180 Renewal of Cannabis Business Licenses

4.04.190 Existing Cannabis Business Licensees.
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4.04.200 Revocation of Licenses

4.04.210 Effect of State License Suspension

4.04.220 Effect of State License Revocation

4.04.230 Appeals

4.04.240 Written Request for Appeal

4.04.250 Grounds for Appeal

4.04.260 Appeal Hearing Process

4.04.270 Administrative Hearing and Proceedings

4.04.280 Change in location; Updated Application Form

4.04.290 Transfer of Cannabis Business License

4.04.300 City Business License

4.04.310 Building Permits and Inspection

4.04.320 Authorization from the Planning Division

4.04.330 Right to Occupy and to Use Property

4.04.340 Location and Design of Cannabis Businesses

4.04.350 Limitations on City’s Liability

4.04.360 Records and Recordkeeping

4.04.370 Security Measures

4.04.380 Fees and Charges

4.04.390 General Operating Requirements

4.04.400 Amendments to General Operating Requirements

4.04.410 Operating Requirements for Store Front/Retail Facilities

4.04.420 Operating Requirements for Non-Store Front Retailer

4.04.430 Retailer, Non -Store Front Retailer and Microbusiness Delivery Vehicle Requirements

4.04.440 Operating Requirements for Distributors

4.04.450 Operating Requirements for Testing Labs

4.04.460 Operating Requirements for Cannabis Manufacturing: Edibles and Other Cannabis Products; Sale of Edible and Other Cannabis Products

4.04.470 Commercial Cannabis Cultivation Prohibited

4.04.480 Operating Requirements for Out-of-City Delivery Services

4.04.490 Permissible Delivery Locations and Customers

4.04.500 Promulgation of Regulations, Standards and Other Legal Duties

4.04.510 Community Relations

4.04.520 Fees Deemed Debt to the City

4.04.530 License Holder Responsible for Violations

4.04.540 Inspection and Enforcement

4.04.550 Violations Declared a Public Nuisance

4.04.010 Title.

This Chapter shall be known as the Commercial Cannabis Activity Ordinance of the City of Visalia.

4.04.020 Purpose and Intent.
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It is the purpose and intent of this Chapter to implement the provisions of the Medicinal and Adult Use Cannabis Regulation and Safety Act (“MAUCRSA”) to accommodate the needs of medically-ill persons in need of cannabis for medicinal purposes as recommended by their health care provider(s), and to provide access to same. It is also the purpose and intent of this Chapter to provide access to adult-use cannabis for persons aged 21 and over as authorized by the MAUCRSA, while imposing sensible regulations on the use of land to protect the City’s residents, neighborhoods, and businesses from disproportionately negative impacts. It is the purpose and intent of this Chapter to regulate the commercial cultivation, processing, manufacturing, testing, sale, delivery, and distribution of cannabis and cannabis products in a responsible manner to protect the health, safety, and welfare of the residents o f the City and to enforce rules and regulations consistent with state law.

4.04.030 Legal Authority.

This Chapter is adopted pursuant to the authority granted to the City by Section 7 of Article XI of the California Constitution, Sections 50022.1 -50022.8 and 50022.10 of the California Government Code, and the provisions of the MAUCRSA.

4.04.040 Commercial Cannabis Activities Prohibited Unless Specifically Authorized by this Chapter.

Except as specifically authorized by this Chapter, the commercial cultivation, manufacture, processing, storing, laboratory testing, labeling, sale, delivery, distribution, or transportation, of cannabis or cannabis products is expressly prohibited in the City.

4.04.050 Compliance with State and Local Laws and Regulations.

It is the responsibility of the owners and /or operators of any commercial cannabis business within the City limits to ensure that they operate in a manner compliant with this Chapter, all applicable state and local la ws, and any regulations promulgated thereunder , including but not limited to the MAUCRSA.

4.04.060 Definitions.

All definitions pertaining to cannabis regulation that appear in Business and Professions Code Section 26001, as codif ied by the MAUCRSA, are hereby incorporated by reference. Definitions appearing in this ordinance are either those that are not covered by state law, pre -date the MAUCRSA, or are outside the scope of Business and Professions Code Section 26001.

(A) “Applicant” means a person or entity that submits an application for a Cannabis Business License under this Chapter.

(B) “Cannabis” shall have the same meaning as that appearing in Business and Professions 240

Code Section 26001(f).

(C) “Caregiver” or “primary caregiver” has the same meaning as that term is defined in Health and Safety Code Section 11362.7.

(D) “City” shall mean the City of Visalia, California and shall include any officer, agent or employee of the City acting in their offic ial capacity on behalf of the City in carrying out the provisions of this chapter.

(E) “City Manager” shall mean the City of Visalia City Manager or their designee.

(F) “Commercial cannabis business” or “cannabis business” means any business or operation which engages in medicinal or adult-use commercial cannabis activity.

(G) “Cannabis Business License” means a regulatory license issued by the City pursuant to this Chapter, to a commercial cannabis business and is required before any commercial cannabis activity may be conducted in the City. The initial license and annual renewal of a commercial cannabis business is made expressly contingent upon the business’ ongoing compliance with all of the requirements of this Chapter and any regulations adopted by the City governing the commercial cannabis activity at issue.

(H) “Cannabis Business Licensee” or “Licensee” means a person or entity that has received a Cannabis Business License from the City as authorized under this Chapter.

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

(J) “Dispensing” means any activity involving the retail sale of cannabis or cannabis products from a retailer.

(K) “Distributor” shall have the same meaning as that appearing in Section 26070 of the Business and Professions Code, and have been issued, or intends to operate under a Type 11 or Type 13 license from the CA Department of Cannabis Control.

(L) “Limited-access area” means an area in which cannabis is stored or held and is only accessible to a licensee and authorized personnel.

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(M) “Manufactured cannabis” means raw cannabis that has undergone a process whereby the raw agricultural product has been transformed into a concentrate, extraction or other manufactured product intended for internal consumption through inhalation or oral ingestion or for topical application.

(N) “Manufacturer” shall have the same meaning as that appearing in Section 26130 of the Business and Professions Code, and have been issued, or intends to operate under any type of manufacturing license issued by the CA Department of Cannabis Control except for Type 7 as volatile solvent-based cannabis manufacturing uses shall be prohibited.

(O) “Manufacturing site” means a location that produces, prepares, propagates, or compounds cannabis or cannabis products, directly or indirectly, by extraction methods, independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis, and is owned and operated by a person issued a valid Cannabis Business License for cannabis manufacturing from the City of Visalia and, a valid state license as required for manufacturing of cannabis products.

(P) “Medical Marijuana” means the use of marijuana for the purposes set forth in the Compassionate Use Act and the Medical Marijuana Program Act, which was adopted by California voters as Proposition 215 in 1996, found in California Health and Saf ety Code Sections 11362.5 and 11362.7 et seq.

(Q) “Microbusiness” shall mean a commercial cannabis business that has been issued , or intends to operate under a Type 12 license from the CA Department of Cannabis Control and may not conduct storefront retail activities or any form of cultivation activities other than that of the “Processor” sub license type of the Cultivation licenses issued by the CA Department of Cannabis Control.

(R) “Non-retail business” means a wholesale business which includes cultivation, processing, manufacturing, distribution, and/or testing labs.

(S) “Non-storefront retailer” is a subset of “Retailer” and is a licensed retail business that is closed to the public and provides product to customers solely by means of a delivery service which the retailer owns and controls.

(T) “Non-volatile solvent” means any solvent used in the extraction process that is not a volatile solvent as defined by state law . For purposes of this Chapter, a non -volatile solvent includes carbon dioxide (CO2) used for extraction and ethanol used for extraction or post-extraction processing.

(U) “Owner” means any of the following:

(1) A person with an aggregate ownership interest of 5 percent or more in the commercial cannabis business , unless the interest is solely a security, lien or 242

encumbrance.

(2) An individual who manages, directs, or controls the operations of the commercial cannabis business, including but not limited to:

(a) A member of the board of directors of a nonprofit.
(b) A general partner of a commercial cannabis business that is organized as a partnership.
(c) A non-member manager or manager of a commercial cannabis business tha t is organized as a limited liability company.
(d) The trustee(s) and all persons who have control of the trust and/or the commercial cannabis business that is held in trust.
(e) An individual with the authority to provide strategic direction and oversight for the overall operations of the commercial cannabis business, such as the chief executive officer, preside nt or their equivalent, or an officer, director, vice president, general manager or their equivalent.
(f) An individual with the authority to execute contracts on behalf of the commercial cannabis business.
(g) When an entity is an owner in a commercial cannabis business, all entities and individuals with a financial interest in the entity shall be disclosed to the City and may be considered owners of the commercial cannabis business. For example, this includes all entities in a multi-layer business structure, as well as the chief executive officer, members of the board of directors, partners, trustees and all persons who have control of a trust and managing members or non -member managers of the entity. Each entity disclosed as having a financial interest must discl ose the identities of persons holding financial interests until only individuals remain.

(V) “Package” means any container or receptacle used for holding cannabis or cannabis products.

(W) “Park” means all parks and their associated open spaces, park amenities, buildings and recreation centers used by the public within the boundaries of the city limits of the city, and which are owned, operated and/or maintained by the city.

(X) “Patient” or “qualified patient” shall have the same meaning as that contained in California Health and Safety Code Section 11362.7 et seq., as it may be amended, and which includes within its definition a person who is entitled to the protections of California Health & Safety Code Section 11362.22.

(Y) “Person” shall mean any individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit.

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(Z) “Person with an identification card” shall have the same meaning as that contained in California Health and Safety Code Section 11362.7.

(AA) “Processing” or “Processor” means a business or facility that conducts only trimming, drying, curing, grading, packagin g, or labeling of cannabis and non -manufactured cannabis products.

(BB) “Retailer” or “Storefront Retailer” shall have the same meaning as th at contained in Section 26070(a)(1) of the California Business and Professions Code.

(CC) “State license” means a permit or license issued by the State of California, or one of its departments or divisions, under the MAUCRSA and any subsequent related State of California legislation , to engage in cannabis activity. A state license alone will not authorize the holder to operate a cannabis business , as state law also requires a license or other authorization issued by a local jurisdiction.

(DD) “Testing Laboratory” shall have the same meaning as that appearing in Section 26100 of the Business and Professions Code, and have been issued, or intends to operate under a Type 8 license issued by the CA Department of Cannabis Control.

(EE) “Topical cannabis” means a product intended for external application and/or absorption through the skin. A topical cannabis product is not considered a drug as defined by California Health and Safety Code Section 109925.

(FF) “Transport” means the transfer of cannabis products from the licensed business location of one state licensee to the licensed business location of another state licensee, for the purposes of conducting cannabis activity authorized by the MAUCRSA which may be amended or repealed by any subsequent related State of California legislation. Transport can only be performed by state licensed distributors and does not in clude deliveries of cannabis or cannabis products.

(GG) "Volatile solvent" means a solvent as defined by Health and Safety Code Section 11362.3(b)(3) as of the effective date of this article and as subsequently amended.

(HH) “Youth center” means any:

(1) Public or private facility that is primarily used to host recreation or social activities for minors, including, but not limited to:

(a) Private youth membership organizations or clubs,
(b) Social service teenage club facilities, and
(c) Must be used for youth activities at least 60 percent of the time in a calendar year.

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(2) This definition shall not include any private martial arts, yoga, ballet, music , art studio or similar studio of this nature nor shall it include any private gym, athletic training facility, pizza parlor, dentist office, doctor’s office primarily serving children or a location which is primarily utilized as an administrative office or facility for youth programs or organizations.

4.04.070 Cannabis Business License Required to Engage in Cannabis Business.

No person may engage in any cannabis business within the City including cultivation, manufacture, processing, laboratory testing, distributing, dispensing, or sale of cannabis or a cannabis product unless the person meets all of the following requirements:

(A) Possess a valid Cannabis Business License from the City;

(B) Possess a valid State of California Seller’s Permit; and

(C) Is currently in compliance with all applicable state and local laws and regulations pertaining to the cannabis business and the cannabis activities, including the duty to obtain any required state licenses.

4.04.080 Evidence of Cannabis Owners and/or Employees Background Check Required.

(A) Any person who is an owner, employee or who otherwise works within a cannabis business must be legally authorized to do so under applicable state law.

(B) Cannabis business owners , operators, investors , managers, and employees shall be required to submit to a criminal background check for themselves and all persons in their employment.

(C) The City shall conduct criminal background checks which must at a minimum identify the following:

(1) Whether the individual applying for employment has ever been convicted of a violent felony as defined by California Penal Code 667.5 or equivalent offenses in other states;

(2) Whether the owner or employee has ever been convicted of a felony for hiring, employing, or using a minor in transporting, carrying, selling, giving away, preparing for sale, or peddling, any controlled substance to a minor; or selling, offering to sell, furnishing, offering to furnish, administering, or giving any controlled substance to a minor; or

(3) Whether the owner or employee has ever been convicted of a felony for drug trafficking with enhancements pursuant to Section 11370.4 or 11 379.8 of the 245

Health and Safety Code

(D) Evidence of a conviction of any the offenses enumerated in Section 4.04.080(c) of this Code shall be grounds for denial of employment.

(E) Violation of Section 4.04.080 of this Code shall be grounds for immediate suspension of the business’ operating Cannabis Business License, pending a hearing before the City Manager within 30 days for a final determination of the status of the license.

(F) Employee permit required.

(1) Every employee or independent contractor working at a commercial cannabis business or involved in transportation/delivery related services for a cannabis business shall obtain an employee permit. It shall be the duty of the commercial cannabis business to ensure that employee permits are obtained from the Visalia Police Department prior to the employee or independent contractor commencing work. Persons who are listed as a business owner on a regulatory permit shall not be required to obtain an employee permit if such person also serves as an employee or contractor. All responsible parties, except the business owner, shall be required to obtain an employee permit.

(2) Each employee and independent contractor shall be required to provide the following information under penalty of perjury, so that the Visalia Police Department perform a background check:

(a) Name, current resident address, and telephone number; (b) Date of birth;
(c) Tax identification number;
(d) Height, weight, color of eyes, and hair;
(e) Photographs for identification purposes;
(f) Be fingerprinted by the Police Department;
(g) Such other identification and information as deemed necessary by the Chief of Police and pertinent to the employee permit;
(h) Authorization for the city, its agents and employees to seek verification of the information contained within the application;
(i) The name of the business owner holding the regulatory permit and the operator for which such person is proposed to work.

4.04.090 Personnel Prohibited from Holding a License or from Employment with a Cannabis Business Licensee.

(A) Any person, including but not limited to any individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit, in which any of 246