HomeMy WebLinkAbout2025-01-30 Council Agenda PacketThursday, January 30, 2025
9:00 AM
City of Fresno
2600 Fresno Street
Fresno, CA 93721
www.fresno.gov
Council Chambers
City Council
President - Mike Karbassi
Vice President - Miguel Angel Arias
Councilmembers:
Annalisa Perea, Tyler Maxwell, District 5 - Vacant,
Nick Richardson, Nelson Esparza
City Manager - Georgeanne A. White
City Attorney - Andrew Janz
City Clerk - Todd Stermer, CMC
Meeting Agenda - Final
Regular Meeting
01-30-2025
MA/TM 6-0
APPROVED AS AMENDED
DISTRICT 5 (VACANT) ABSENT
January 30, 2025City Council Meeting Agenda - Final
THE FRESNO CITY COUNCIL WELCOMES YOU TO THE COUNCIL CHAMBER,
LOCATED IN CITY HALL, 2ND FLOOR, 2600 FRESNO STREET, FRESNO,
CALIFORNIA 93721.
The City Council met in regular session in the Council Chamber, City Hall, on the
date and time above written.
PUBLIC PARTICIPATION – Public participation during Fresno City Council meetings is
always encouraged and can occur by attending a meeting in the Council Chambers on the
2nd floor of City Hall located at 2600 Fresno Street, Fresno, CA 93721.
To be called to speak during a meeting, please fill out a speaker card (located throughout
the chamber) and place it in the speaker card collection basket at the front of the chamber.
You may also approach the speaker podium upon the Council President’s call for any
additional public comment.
Unless otherwise announced, all public speakers will have up to 3 minutes to address
Council pursuant to Rule No. 10 of the Rules of Procedure for the City Council of the City
of Fresno (available in the City Clerk’s Office).
SUBMIT DOCUMENTS / WRITTEN COMMENTS - Pursuant to Rule 11 (c) of the Rules of
Procedure, no documents shall be accepted for Council review unless submitted to the City
Clerk at least 24 hours prior to the Council Agenda item be heard. Documents / written
comments related to an agenda item can be submitted by one of the following methods:
1) eComment – eComment allows the public to submit agenda related comments through
a website prior to the meeting. Submitted comments are limited to 1440 characters and
will be a part of the official record.
a) Submit an e-Comment by visiting https://fresno.legistar.com/Calendar.aspx and
selecting the “eComment” link.
b) e-Comment is available for use upon publication of the agenda and closes 24
hours prior to the meeting start time [pursuant to Rule 11(c)].
c) e-Comment is not permitted for Land use or CEQA items.
d) The e-Comment Electronic User Agreement can be viewed at:
https://www.fresno.gov/cityclerk/#information
2) E-mail – Agenda related documents and comments can be e-mailed to the Office of
the City Clerk at least 24 hours prior to the agenda item being heard, pursuant to Rule
11(c).
Page 2 City of Fresno ***Subject to Mayoral Veto
January 30, 2025City Council Meeting Agenda - Final
a) E-mail the Clerk’s Office at clerk@fresno.gov
b) E-mails should include the agenda date, and the related agenda item number.
VIEWING CITY COUNCIL MEETINGS (non-participatory) - For your convenience, there
are several ways to view Fresno City Council meetings live:
1) City of Fresno website: https://fresno.legistar.com/Calendar.aspx (click “In Progress”
to view the live meeting).
2) Community Media Access Collaborative website: https://cmac.tv/
3) YouTube - City of Fresno Council, Boards and Commissions Channel:
https://www.youtube.com/channel/UC3ld83D8QGn1YBDw6aD5dZA/videos
4) Facebook: https://www.facebook.com/FresnoCA/videos
5) Cable Television: Comcast Channel 96 and AT&T Channel 99
6) Zoom: https://www.fresno.gov/council-meeting/
Should any of the six viewing methods listed above experience technical difficulties, the
Council meeting will continue uninterrupted. Council meetings will only be paused to
address verifiable technical difficulties for all users participating via Zoom or in the Council
Chamber.
The City of Fresno’s goal is to comply with the Americans with Disabilities Act (ADA).
Anyone requiring reasonable ADA accommodations, including sign language interpretation
should contact the office of the City Clerk at (559) 621-7650 or clerk@fresno.gov. The
office of the City Clerk should also be contacted if spoken language translation is expected
to be needed during a meeting. To help ensure availability of these services, you are
advised to make your request a minimum of three business days prior to the scheduled
meeting.
Page 3 City of Fresno ***Subject to Mayoral Veto
January 30, 2025City Council Meeting Agenda - Final
GOVERNMENT CODE 84308 CONTRIBUTION PROHIBITIONS AND MANDATORY
DISCLOSURES - The Political Reform Act of 1974 (Act) restricts campaign contributions
over $250 from a party to or participant in a proceeding involving a license, permit,
contract, or entitlement for use before the City. The Act requires disclosure of the
contribution and creates a conflict where a decisionmaker has received $250 or more from
a party or participant to a proceeding in the prior 12 months. A decisionmaker must
disclose on the record during the proceeding that they have received contributions from a
party, participant, or agent of a party or participant, greater than $250 within the preceding
12 months and the name(s) of the contributor(s). (See 2 CCR 18438.8(a).) Parties and
participants to a proceeding are required to disclose on the record if they made
contributions over $250 within the prior 12 months, and are prohibited from making
contributions to a decisionmaker during the proceeding and for 12 months after the date a
final decision is rendered on the proceeding. Violations of these provisions are punishable
as a misdemeanor.
Page 4 City of Fresno ***Subject to Mayoral Veto
January 30, 2025City Council Meeting Agenda - Final
9:04 A.M. ROLL CALL
Invocation by Father Philemon Nashed from the Archangel Micheal Orthodox Church
Pledge of Allegiance to the Flag
APPROVE AGENDA
CEREMONIAL PRESENTATIONS
Proclamation for ‘Meux Home”ID 25-115
Sponsors:Council President Karbassi, Vice President Arias and
Councilmember Esparza
Proclamation for “Despierta Valle Central”ID 25-130
Sponsors:Vice President Arias
Proclamation for "National Human Trafficking Prevention
Month”
ID 25-7
Sponsors:Councilmember Esparza
Certificate of Recognition for Central Unified's Biola-Pershing
FFA Students
ID 25-104
Sponsors:Councilmember Maxwell
Fresno Animal Center presents “Pet of the Month”ID 25-32
Sponsors:Animal Center Department
COUNCILMEMBER REPORTS AND COMMENTS
MAYOR/MANAGER REPORTS AND COMMENTS
1. SCHEDULED COUNCIL HEARINGS AND MATTERS
9:15 A.M. (CONTINUED TO FEBRUARY 27, 2025, AT 9:15 A.M.)
HEARING for Consideration of Text Amendment Application
No. P23-03410 and related Environmental Finding for
Environmental Assessment No. P23-03410, amending
Sections 15-2761 and 15-6802 of the Citywide Development
ID 25-31
Page 5 City of Fresno ***Subject to Mayoral Veto
January 30, 2025City Council Meeting Agenda - Final
Code, relating to Tobacco and Vapor Sales, Smoke Shops,
and Definitions.
1. ADOPTION of a finding set forth in Environmental
Assessment No. P23-03410 dated January 15, 2025, that
Text Amendment Application No. P23-03410 is exempt from
the California Environmental Quality Act (CEQA) pursuant to
Section 15061(b)(3) of the CEQA Guidelines.
2. BILL (for introduction) amending Sections 15-2761 and 15
-6802 of the Citywide Development Code, relating to relating
to Tobacco and Vapor Sales, Smoke Shops, and Definitions.
Sponsors:Planning and Development Department
10:00 A.M.
Appearance by Armida Meza regarding “Homeless problem of
Fresno” (District 4 Resident)
ID 25-101
Sponsors:Office of the City Clerk
10:03 A.M.
Appearance by Reba Morris regarding “Homelessness in
Fresno” (District 4 Resident)
ID 25-143
Sponsors:Office of the City Clerk
2. CONSENT CALENDAR
Approval of the minutes for January 9, 2025ID 25-1332.-A.
Sponsors:Office of the City Clerk
Actions pertaining to the expansion of the Code Enforcement
Division in the City Attorney’s Office:
***RESOLUTION - Adopt the Third Amendment to the
Position Authorization Resolution (“PAR”) No. 2024-121,
adding one permanent, full-time Housing Program Supervisor
position in the City Attorney’s Office, Division of Code
Enforcement (Subject to Mayor’s Veto)
ID 25-1292.-B.
Sponsors:City Attorney's Office
Approve a consultant services agreement with Leon
Environmental Consulting in an amount not to exceed
ID 25-1212.-C.
Page 6 City of Fresno ***Subject to Mayoral Veto
January 30, 2025City Council Meeting Agenda - Final
$200,000, to provide professional inspection, testing, and
consultant services for potentially hazardous materials
(lead-based paint and asbestos containing materials) as well
as supervision of removal of hazardous materials for
demolitions of dangerous structures conducted by Code
Enforcement; and authorize the City Attorney or designee to
sign the agreement on behalf of the City.
Sponsors:City Attorney's Office
Bill - (For Introduction) Amending Section 10-2204(a) of the
Fresno Municipal Code, Relating to the Pre-Removal Notice
ID 25-1782.-D.
Sponsors:City Attorney's Office
Approve the appointment of Richard Burrell to the Housing
Authority of the City of Fresno to a term ending April 30,
2028. Approve the appointment of Lydia Zabrycki to the
Fresno Regional Workforce Development Board to a term
ending November 1, 2025.
ID 25-1142.-E.
Sponsors:Office of Mayor & City Manager
Actions pertaining to the Cesar Chavez Boulevard (formerly
California Avenue) Improvements Projects from Fruit Avenue
to Mayor Avenue (Council District 3):
1. Approve an agreement for Professional Engineering
Services with Peters Engineering Group, of Clovis, California,
in the amount of $320,000 with a $32,000 contingency, for
the design and construction support services for the Cesar
Chavez Complete Streets Project from Fruit Avenue to Mayor
Avenue (Council District 3) (Bid File 12500464)
2. Approve an agreement for Professional Engineering
Services with Peters Engineering Group, of Clovis, California,
in the amount of $910,335 with a $91,034 contingency, for
the design and construction support services for the Cesar
Chavez Boulevard Enhancements Project from Fruit Avenue
to Pottle Avenue (Council District 3) (Bid File 12500464)
ID 25-1002.-F.
Sponsors:Capital Projects Department and Public Works Department
Approve the Second Amendment to the Consultant Services
Agreement with Pcubed Associates, Inc. of Glendale,
California, to increase the total contract by an amount not to
ID 25-912.-G.
Page 7 City of Fresno ***Subject to Mayoral Veto
January 30, 2025City Council Meeting Agenda - Final
exceed $184,875, paid on a time and materials basis for a
revised total contract amount not to exceed $302,175, with a
contingency amount not to exceed $11,730; and to extend
the term of the Agreement to June 30, 2026, for the Forensic
Investigation of Structural Components at the Fresno-Clovis
Regional Wastewater Reclamation Facility Project. (Council
District 3)
Sponsors:Capital Projects Department and Department of Public
Utilities
Actions pertaining to executing the Master Equipment Lease
Purchase Agreement:
1. RESOLUTION - Adopt a Resolution authorizing the
execution and delivery of a Master Equipment Lease
Purchase Agreement and certain separate lease schedules
with respect to the acquisition, purchase, financing and
leasing of equipment for the public benefit; and authorizing
the execution and delivery of documents required in
connection therewith.
2. Approve an agreement of the Master Equipment Lease
Purchase Agreement (MELPA) with Banc of America Public
Capital Corp (BAPCC).
3. Authorize the City Controller to sign the Master Equipment
Lease Purchase Agreement and related documents with
BAPCC on behalf of the City.
ID 25-1482.-H.
Sponsors:Finance Department
Approve the Award of a Cooperative Purchase Agreement
with Shade & Partners Technology Solutions, Inc. for the
purchase of the Cornerstone Learning Management system
for a three-year term, with two optional year extensions, in
the amount of $207,714.50 for year one with annual renewals
not to exceed 10% more than the previous year.
ID 25-712.-I.
Sponsors:Information Services Department and Personnel Services
Department
Approve a Cooperative Purchase agreement with KIS for
server virtualization subscription licensing and support for the
City for three years, in the amount of $797,839.20, in
accordance with purchasing procedures from cooperative
ID 25-982.-J.
Page 8 City of Fresno ***Subject to Mayoral Veto
January 30, 2025City Council Meeting Agenda - Final
purchase agreements as set forth in Administrative Order 3-1;
and authorize the Chief Information Officer or designee to
execute the agreement.
Sponsors:Information Services Department
RESOLUTION - Adopting the Measure P Expanded Access
to Arts and Culture Grant Guidelines.
ID 25-1282.-K.
Sponsors:Parks, After School and Recreation and Community Services
Department
Approve the First Amendment to Local Housing Trust Fund
Avalon Commons Phase II Agreement with Avalon Commons
Phase II, LP., a California Limited Partnership, to extend the
project schedule beyond 180 cumulative days. (Council
District 6)
ID 25-302.-L.
Sponsors:Planning and Development Department
Approve the First Amendment to State and Local Fiscal
Recovery Funds Econo North Apartments Agreement with
Better Opportunities Builder, Inc., an affiliate of the Housing
Authority of the City of Fresno, to extend the project schedule
beyond 180 cumulative days. (District 3)
ID 25-282.-M.
Sponsors:Planning and Development Department
Approve a Second Amendment to the Disposition and
Development Agreement between Metro Hospitality Services,
Inc., and City of Fresno to extend the construction schedule
for the Courtyard by Marriott Hotel in Downtown Fresno
located at the northeast corner of Inyo and M Street (District
3)
ID 25-1222.-N.
Sponsors:Planning and Development Department
***RESOLUTION - Authorizing the submission of a grant
application and acceptance of funds from the California
Department of Housing and Community Development’s 2024
Homeownership Super NOFA for funding under the CalHome
Program for Homebuyer Mortgage Assistance, and
authorizing the City Manager or designee to sign all
necessary implementing documents (Subject to Mayor’s
Veto)
ID 25-632.-O.
Page 9 City of Fresno ***Subject to Mayoral Veto
January 30, 2025City Council Meeting Agenda - Final
Sponsors:Planning and Development Department
Actions pertaining to the 2025 Law Enforcement Specialized
Unit Program:
1. ***RESOLUTION - Adopt a Resolution authorizing
acceptance of $203,142 in grant funding from the California
Governor’s Office of Emergency Services’ Law Enforcement
Specialized Unit Program for the Fresno Police Department’s
Domestic Violence Unit 2025 Law Enforcement Specialized
Unit Program (Subject to Mayor’s veto)
2. ***RESOLUTION - Adopt the 36th Amendment to the
Annual Appropriation Resolution No. 2024-122 to appropriate
$101,600 in Law Enforcement Specialized Unit Program
Grant funding for the Police Department’s Domestic Violence
Unit (Requires 5 Affirmative Votes) (Subject to Mayor’s Veto)
3. Approve a Memorandum of Understanding with Marjaree
Mason Center, Inc. for the total grant amount not to exceed
$138,662
4. Authorize the Chief of Police to sign the Memorandum of
Understanding with Marjaree Mason Center Inc., on behalf of
the City
ID 25-1272.-P.
Sponsors:Police Department
Approve the Water System Consolidation Agreement
between Three Palms Mobile Home Park, LLC and the City
of Fresno for a water connection to serve Three Palms MH
Park and authorize the Director of Public Utilities to sign the
Agreement on behalf of the City of Fresno. (Council District 3)
ID 25-872.-Q.
Sponsors:Department of Public Utilities
***RESOLUTION - Declaring an urgent necessity for the
preservation of life, health, property and authorizing the City
Manager or designee, to enter into agreements without
advertised competitive bidding for the emergency landfill gas
collection and control system repairs and site security
improvements at the Fresno Municipal Sanitary Landfill
Superfund Site (Requires 5 affirmative votes) (Subject to
Mayor’s veto)
ID 25-1722.-R.
Sponsors:Department of Public Utilities
Page 10 City of Fresno ***Subject to Mayoral Veto
January 30, 2025City Council Meeting Agenda - Final
Award a Requirements Contract to Briner & Son Inc. of
Fresno, California, to provide Landscape Maintenance
Services to Community Facilities District No. 15 within the
City of Fresno, for one year with seven optional one-year
extensions in an amount not to exceed $128,586.28 per year
plus an annual 20% contingency (RFP No. 12500184), and
to authorize the Public Works Director or designee to sign the
contract on behalf of the City. (Council District 6)
ID 25-1022.-S.
Sponsors:Public Works Department
RESOLUTION - Authorizing the Submission of a Planning
Grant Application to the Office of the Secretary (OST), US
Department of Transportation (DOT) for the 2025 Rebuilding
American Infrastructure with Sustainability and Equity
(RAISE) Program for project planning, preparation, and/or
design activities for the Shaw Avenue and State Route 99
Freeway Interchange Improvement project; and Authorizing
the Execution of Grant Application and Grant Agreement
Documents by the Public Works Director or Designee
(Council Districts 1 and 2).
ID 25-662.-T.
Sponsors:Public Works Department
RESOLUTION - Approving the Final Map of Tract No. 6410,
and accepting dedicated public uses offered therein except
for dedications offered subject to City acceptance of
developer installed required improvements - located near the
northeast corner of South Peach Avenue and East Church
Avenue. (Council District 5)
ID 25-832.-U.
Sponsors:Public Works Department
RESOLUTION - Of Intention to Annex the Territory Known as
Assessor’s Parcel Number 310-250-13 as Annexation
Number 65 to the City of Fresno Community Facilities District
Number 9 and to Authorize the Levy of Special Taxes; and
setting the Public Hearing for Thursday, March 13, 2025, at
9:15 am. (East side of North Armstrong Avenue and East
Harvard Avenue) (Council District 7)
ID 25-962.-V.
Sponsors:Public Works Department
Page 11 City of Fresno ***Subject to Mayoral Veto
January 30, 2025City Council Meeting Agenda - Final
RESOLUTION - Of Intention to Annex the Territory Known as
Assessor’s Parcel Number 506-130-04S as Annexation
Number 64 to the City of Fresno Community Facilities District
Number 9 and to Authorize the Levy of Special Taxes; and
setting the Public Hearing for Thursday, March 13, 2025, at
9:20 am (Southwest corner of West Sierra Avenue and North
Polk Avenue). (Council District 2)
ID 25-972.-W.
Sponsors:Public Works Department
Submission for informational purposes of the Annual
Comprehensive Financial Reports (“ACFR”) regarding the
financial activities of the City of Fresno Retirement Systems
for the Fiscal Year Ending June 30, 2024
ID 25-1062.-X.
Sponsors:Retirement Department
Reject all bids of a three-year base contract, with options for
two one-year extensions, for the purchase Radial Tire
Leasing Services (Bid File 12500030).
ID 25-1082.-Y.
Sponsors:Department of Transportation
Approve the appointment of Navkaran Gurm to the Public
Financing Authority of the Fresno Enhanced Infrastructure
Financing District for a term which serves at the pleasure of
the Councilmember.
ID 25-1032.-Z.
Sponsors:Vice President Arias
Approve the reappointment of Stephen Avila to the Fresno
Regional Workforce Development Board (FRWDB) for a term
ending November 1, 2026. Approve the appointment of
James D. Martinez to the Fresno Metropolitan Flood Control
District Board for a term ending August 3, 2028. Approve the
re-appointment of Raquel Busani to the Fresno Metropolitan
Flood Control District Board for a term ending August 3,
2028.
ID 25-1072.
-AA.
Sponsors:Council President Karbassi
Approve the appointment of James Poptanich to the
Fresno-Madera Area Agency on Aging Board for a term
ending January 4, 2027.
ID 25-812.
-BB.
Page 12 City of Fresno ***Subject to Mayoral Veto
January 30, 2025City Council Meeting Agenda - Final
Sponsors:Council President Karbassi
Bill - (For Introduction) Adding Chapter 10 of Article 27 of the
Fresno Municipal Code, Relating to the Anti Human
Transportation and Abandonment Ordinance
ID 25-1672.
-CC.
Sponsors:Councilmember Perea, Council President Karbassi and
Councilmember Richardson
Council Boards and Commissions Communications, Reports,
Assignments and/or Appointments, Reappointments,
Removals to/from City and non-City Boards and
Commissions.
ID 25-1652.
-DD.
Sponsors:Council President Karbassi
CONTESTED CONSENT CALENDAR
3. GENERAL ADMINISTRATION
WORKSHOP - Community Workforce Agreement (Project
Labor Agreement) Annual Review.
ID 25-333.-A.
Sponsors:Capital Projects Department
WORKSHOP - Downtown Fresno Parking AutomationID 25-1543.-B.
Sponsors:Planning and Development Department and Capital Projects
Department
UNSCHEDULED COMMUNICATION
PLEASE NOTE: UNSCHEDULED COMMUNICATION IS NOT SCHEDULED FOR A
SPECIFIC TIME AND MAY BE HEARD ANY TIME DURING THE MEETING
4. CITY COUNCIL
5. CLOSED SESSION
CONFERENCE WITH LABOR NEGOTIATORS -
Government Code Section 54957.6
City Negotiators: Jennifer Misner; Sumeet Malhi
Employee Organization(s): 1. International Union of
Operating Engineers, Stationary Engineers, Local 39 (Local
39); 2. Fresno City Employees Association (FCEA); 3. Fresno
Police Officers Association (FPOA Basic), Unit 4; 4.
ID 25-855.-A.
Page 13 City of Fresno ***Subject to Mayoral Veto
January 30, 2025City Council Meeting Agenda - Final
International Association of Firefighters, Local 202, Unit 5
(Fire Basic); 5. Amalgamated Transit Union, Local 1027
(ATU); 6. International Brotherhood of Electrical Workers,
Local 100 (IBEW); 7. Fresno Police Officers Association
(FPOA Management) Unit 10; 8. International Association of
Firefighters, Local 202, Unit 10 (Fire Management); 9. City of
Fresno Professional Employees Association (CFPEA); 10.
City of Fresno Management Employees Association
(CFMEA); 11. Fresno Airports Public Safety Officers
Association (FAPSOA)
Sponsors:Office of Mayor & City Manager
CONFERENCE WITH LEGAL COUNSEL-EXISTING
LITIGATION
Government Code Section 54956.9, subdivision (d)(1)
Park 7, LLC., and LandValue Management LLC., v. City of
Fresno; Fresno Superior Court Case No. 24CECG04298
ID 25-1055.-B.
Sponsors:City Attorney's Office
CONFERENCE WITH LEGAL COUNSEL-EXISTING
LITIGATION
Government Code Section 54956.9, subdivision (d)(1)
Doredda Grossman, et al v. City of Fresno; Fresno Superior
Court Case No. 23CECG00345
ID 25-1255.-C.
Sponsors:City Attorney's Office
CONFERENCE WITH LEGAL COUNSEL-EXISTING
LITIGATION -
Government Code Section 54956.9, subdivision (d)(1)
South Fresno Community Alliance v. City of Fresno, et al.
Fresno Superior Court Case No.: 21CECG03237
ID 25-1455.-D.
Sponsors:City Attorney's Office
CONFERENCE WITH LEGAL COUNSEL-EXISTING
LITIGATION
Government Code Section 54956.9, subdivision (d)(1)
Case Name(s): City of Fresno v. Fresno Building Healthy
Communities Court of Appeal Case No.: F084662; and
Fresno Building Healthy Communities v. City of Fresno Court
of Appeal Case No.: F084666 (PARCS Department)
ID 25-1665.-E.
Page 14 City of Fresno ***Subject to Mayoral Veto
January 30, 2025City Council Meeting Agenda - Final
Sponsors:City Attorney's Office
CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED
LITIGATION
Government Code Section 54956.9, subdivision (d)(2)
Significant Exposure to Litigation:
Josie Rodriguez v. City of Fresno, Risk File No.
RM2022043424 (Police Department)
ID 25-805.-F.
Sponsors:City Attorney's Office
PUBLIC EMPLOYEE PERFORMANCE EVALUATION
1. Government Code Section 54957(b): consider the
appointment, employment, evaluation of performance,
discipline, or dismissal of a public employee.
Title: City Attorney
2. Government Code Section 54957.6: conference with labor
negotiator. City Negotiator: Council President Mike Karbassi.
Unrepresented Employee: City Attorney
ID 25-1505.-G.
Sponsors:Council President Karbassi
ADJOURNMENT
UPCOMING SCHEDULED COUNCIL HEARINGS AND MATTERS
FEBRUARY 27, 2025, 9:10 A.M. - RESOLUTION - Repealing Resolution Number
2024-125 and replacing it with language in support of a contribution of City and
Housing Successor Agency land toward the Ventura Family Apartments
FEBRUARY 27, 2025, 9:15 A.M. - HEARING for Consideration of Text Amendment
Application No. P23-03410 and related Environmental Finding for Environmental
Assessment No. P23-03410
UPCOMING EMPLOYEE CEREMONIES
EMPLOYEE OF THE QUARTER - 10:00 A.M.
• April 2, 2025 (Wednesday) - Employee of the Spring Quarter
• July 16, 2025 (Wednesday) - Employee of the Summer Quarter
• October 15, 2025 (Wednesday) - Employee of the Fall Quarter
EMPLOYEE SERVICE AWARDS - 10:00 A.M.
• April 16, 2025 (Wednesday) - Employee Service Awards
Page 15 City of Fresno ***Subject to Mayoral Veto
January 30, 2025City Council Meeting Agenda - Final
• November 19, 2025 (Wednesday) - Employee Service Awards
2025 CITY COUNCIL MEETING SCHEDULE
February 13, 2025 - 9:00 A.M. (Regular Meeting)
February 27, 2025 - 9:00 A.M. (Regular Meeting)
March 13, 2025 - 9:00 A.M. (Regular Meeting)
March 27, 2025 - 9:00 A.M. (Regular Meeting)
April 10, 2025 - 9:00 A.M. (Regular Meeting)
Page 16 City of Fresno ***Subject to Mayoral Veto
City of Fresno
Staff Report
2600 Fresno Street
Fresno, CA 93721
www.fresno.gov
File #:ID 25-115 Agenda Date:1/30/2025 Agenda #:
CEREMONIAL PRESENTATION
Proclamation for ‘Meux Home”
Attachment: Proclamation
City of Fresno Printed on 2/7/2025Page 1 of 1
powered by Legistar™
01-30-2025
PRESENTED
CITY OF FRESNO
Office of Council President Karbassi, Council Vice President Arias
and Councilmember Esparza
WHEREAS , the Meux Home, located at 1007 R Street in Fresno, is a remarkable example of Victorian residential architecture dating back to 1888. Constructed by Dr. Thomas R. Meux, a former Tennessean who became a Fresno resident, the home represents an enduring piece of Fresno's early history. Dr. Meux selected the corner of Tulare and R Streets as his home site, establishing a residence that has since become a prominent historic and architectural landmark; and
WHEREAS , the Meux family occupied the home continuously for 81 years, from 1889 until 1970. This period reflects not only the family's legacy but also the preservation of an almost unaltered Victorian residence. Dr. Meux utilized the home as both a family residence and a medical practice, significantly contributing to Fresno’s medical community as the president of the Fresno County Medical Society in 1896; and
WHEREAS, In 1970, after the passing of Dr. Meux’s daughter, Anne Meux, the City of Fresno acquired the property in recognition of its historical significance. At the time, The Fresno Bee heralded the Meux family’s long occupancy as establishing the longest individual residence in one of Fresno’s oldest dwellings; and
WHEREAS, the Meux Home Corporation, a nonprofit organization, was subsequently established to oversee the museum’s operations and ensure the preservation of this historic treasure. Since its addition to the National Register of Historic Places on January 13, 1975, the Meux Home Museum has remained a testament to Fresno's heritage and an invaluable historical and educational resource for residents and visitors alike; and
NOW, THEREFORE BE IT RESOLVED, that we, Mayor Jerry Dyer and the Fresno City Council, look forward
to celebrating this milestone and commemorating this significant anniversary with the Meux Home.
“Meux Home”
in the City of Fresno.
IN WITNESS WHEREOF, we have hereunto set our hands and
affixed the seal of the City of Fresno, California, this 30th day of January 2025.
_____________________________________________ __________________________________________
JERRY P. DYER, Honorable Mayor MIKE KARBASSI , Council President
_____________________________________________ __________________________________________
MIGUEL ARIAS, Council Vice President ANNALISA PEREA, Councilmember District 1
_____________________________________________ __________________________________________
TYLER MAXWELL, Councilmember District 4 NICK RICHARDSON, Councilmember District 6
_____________________________________________
NELSON ESPARZA, Councilmember District 7
City of Fresno
Staff Report
2600 Fresno Street
Fresno, CA 93721
www.fresno.gov
File #:ID 25-130 Agenda Date:1/30/2025 Agenda #:
CEREMONIAL PRESENTATION
Proclamation for “Despierta Valle Central”
City of Fresno Printed on 2/7/2025Page 1 of 1
powered by Legistar™
01-30-2025
PRESENTED
WHEREAS, Despierta Valle Central, formerly known as Arriba Valle Central, has
been a beloved and trusted Spanish-language morning show that has served as a
cornerstone for many communities in the Central Valley since 1990; and
WHEREAS, Despierta Valle Central has been a household staple and a vital source of
news and information for 35 years, covering topics such as health, education, voting,
employment opportunities, immigration, and road safety, thereby empowering and
informing Spanish-speaking residents; and
WHEREAS, Despierta Valle Central also provided cultural content to the Spanish-
speaking residents, regularly featuring a wide range of entertainment, from local singers,
bands, folkloric groups, internationally known artists, and promoting community cultural
events; and
WHEREAS, the impact of Despierta Valle Central extends beyond the screen, evidenced
by the countless lives it has touched and assistance it has provided to many families
through the trust and respect it has earned from the Latino community; and
WHEREAS, the City of Fresno recognizes the significant contributions of Despierta
Valle Central in entertaining, informing, and empowering the Central Valley. And we
express our deepest gratitude to the longtime host, Lupita Lomeli, the cohosts Pedro
Santos, Sayra Vazquez, and Jose Anaya, and the entire Univision team for their dedication
and service to the Fresno community.
NOW, THEREFORE, BE IT RESOLVED, we, the Fresno City Council and
Mayor Jerry Dyer, do hereby proclaim the 30th of January 2025 as:
“Despierta Valle Central” Day
in the City of Fresno.
IN WITNESS WHEREOF, we have hereunto set our hands and
affixed the Great Seal of the City of Fresno, California, on this 30th day of January 2025.
City of Fresno
Staff Report
2600 Fresno Street
Fresno, CA 93721
www.fresno.gov
File #:ID 25-7 Agenda Date:1/30/2025 Agenda #:
CEREMONIAL PRESENTATION
Proclamation for "National Human Trafficking Prevention Month”
City of Fresno Printed on 2/7/2025Page 1 of 1
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01-30-2025
PRESENTED
CITY OF FRESNO
O ice of Councilmember Nelson Esparza
Is hereby presented in honor of:
Human Tra icking Prevention Month
WHEREAS: January is designated as National Human Trafficking Prevention Month, a time to raise awareness
about the various forms of human trafficking, support survivors, and educate communities on these
urgent issues. The goal is to empower individuals to recognize the signs of trafficking and take action
to help prevent it; and
WHEREAS: The Fresno EOC Sanctuary and Support Services Central Valley Against Human Trafficking project
provides vital resources that promote self-sufficiency, restore dignity, and aid in the recovery from
trauma for survivors. To date, this program has identified and assisted over 2,100 victims of human
trafficking in our local communities; and
WHEREAS: The International Labor Organization estimates that there are approximately 50 million people trapped
in modern-day slavery worldwide, with one in four being children. It is reported that 80% of human
trafficking cases involve sexual exploitation, while 19% involve labor exploitation; and
WHEREAS: The National Center for Missing and Exploited Children estimates that one out of every six
endangered runaway youth is at risk of being trafficked for sex; and
WHEREAS: The U.S. Department of Labor has identified 204 goods from 82 countries that are produced using
forced or child labor. Human trafficking generates billions of dollars annually, perpetuating the
exploitation of millions of people across the globe; and
WHEREAS: The City of Fresno acknowledges the need for increased awareness and accountability in addressing
human trafficking, recognizing that this grave injustice affects individuals from all walks of life.
Today, we stand united in the fight against human trafficking in all its forms, wherever it may occur.
NOW THEREFORE BE IT RESOLVED: that we, Councilmember Nelson Esparza, Mayor Jerry P. Dyer, and the
Fresno City Council, do hereby proclaim, the month of January 2025, as:
“Human Trafficking Prevention Month”
in the City of Fresno.
IN WITNESS WHEREOF, we have hereunto set our hands
and affixed the Seal of The City of Fresno, California, on this 30th day of January 2025.
City of Fresno
Staff Report
2600 Fresno Street
Fresno, CA 93721
www.fresno.gov
File #:ID 25-104 Agenda Date:1/30/2025 Agenda #:
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01-30-2025
CORRECTED ON
DAIS, PRESENTED
CEREMONIAL PRESENTATION
Certificate of Recognition for Central Unified's Biola-Pershing FFA Students
__________________________________________
TYLER MAXWELL, Councilmember, District 4
____________________________________________ ______________________________________________
JERRY P. DYER, Honorable Mayor MIKE KARBASSI, Council President
____________________________________________ ______________________________________________
MIGUEL ARIAS, Council Vice President ANNALISA PEREA, Councilmember, District 1
____________________________________________ ______________________________________________
NICK RICHARDSON, Councilmember, District 6 NELSON ESPARZA, Councilmember, District 7
Office of Councilmember Tyler Maxwell
CERTIFICATE OF RECOGNITION
PRESENTED TO
Alex Claussen
Central Unified’s Biola-Pershing FFA
On behalf of the City of Fresno, we proudly congratulate you on your exceptional dedication and accomplishments with Central
Unified School District’s Biola-Pershing Future Farmers of America. Your commitment to cultivating leadership and
innovation within the field of agriculture reflects the values that sustain our community and its rich agricultural
heritage. Your hard work and passion play an instrumental role in shaping the future of this vital industry.
IN WITNESS WHEREOF, we have hereunto set our hands and affixed the seal of the City of Fresno, California, on this 30th day of January in the year 2025.
__________________________________________
TYLER MAXWELL, Councilmember, District 4
____________________________________________ ______________________________________________
JERRY P. DYER, Honorable Mayor MIKE KARBASSI, Council President
____________________________________________ ______________________________________________
MIGUEL ARIAS, Council Vice President ANNALISA PEREA, Councilmember, District 1
____________________________________________ ______________________________________________
NICK RICHARDSON, Councilmember, District 6 NELSON ESPARZA, Councilmember, District 7
Office of Councilmember Tyler Maxwell
CERTIFICATE OF RECOGNITION
PRESENTED TO
Jenixza De Jesus Zurita
Central Unified’s Biola-Pershing FFA
On behalf of the City of Fresno, we proudly congratulate you on your exceptional dedication and accomplishments with Central
Unified School District’s Biola-Pershing Future Farmers of America. Your commitment to cultivating leadership and
innovation within the field of agriculture reflects the values that sustain our community and its rich agricultural
heritage. Your hard work and passion play an instrumental role in shaping the future of this vital industry.
IN WITNESS WHEREOF, we have hereunto set our hands and affixed the seal of the City of Fresno, California, on this 30th day of January in the year 2025.
__________________________________________
TYLER MAXWELL, Councilmember, District 4
____________________________________________ ______________________________________________
JERRY P. DYER, Honorable Mayor MIKE KARBASSI, Council President
____________________________________________ ______________________________________________
MIGUEL ARIAS, Council Vice President ANNALISA PEREA, Councilmember, District 1
____________________________________________ ______________________________________________
NICK RICHARDSON, Councilmember, District 6 NELSON ESPARZA, Councilmember, District 7
Office of Councilmember Tyler Maxwell
CERTIFICATE OF RECOGNITION
PRESENTED TO
Jaenessa Gamez
Central Unified’s Biola-Pershing FFA
On behalf of the City of Fresno, we proudly congratulate you on your exceptional dedication and accomplishments with Central
Unified School District’s Biola-Pershing Future Farmers of America. Your commitment to cultivating leadership and
innovation within the field of agriculture reflects the values that sustain our community and its rich agricultural
heritage. Your hard work and passion play an instrumental role in shaping the future of this vital industry.
IN WITNESS WHEREOF, we have hereunto set our hands and affixed the seal of the City of Fresno, California, on this 30th day of January in the year 2025.
__________________________________________
TYLER MAXWELL, Councilmember, District 4
____________________________________________ ______________________________________________
JERRY P. DYER, Honorable Mayor MIKE KARBASSI, Council President
____________________________________________ ______________________________________________
MIGUEL ARIAS, Council Vice President ANNALISA PEREA, Councilmember, District 1
____________________________________________ ______________________________________________
NICK RICHARDSON, Councilmember, District 6 NELSON ESPARZA, Councilmember, District 7
Office of Councilmember Tyler Maxwell
CERTIFICATE OF RECOGNITION
PRESENTED TO
Mario Ibarra
Central Unified’s Biola-Pershing FFA
On behalf of the City of Fresno, we proudly congratulate you on your exceptional dedication and accomplishments with Central
Unified School District’s Biola-Pershing Future Farmers of America. Your commitment to cultivating leadership and
innovation within the field of agriculture reflects the values that sustain our community and its rich agricultural
heritage. Your hard work and passion play an instrumental role in shaping the future of this vital industry.
IN WITNESS WHEREOF, we have hereunto set our hands and affixed the seal of the City of Fresno, California, on this 30th day of January in the year 2025.
__________________________________________
TYLER MAXWELL, Councilmember, District 4
____________________________________________ ______________________________________________
JERRY P. DYER, Honorable Mayor MIKE KARBASSI, Council President
____________________________________________ ______________________________________________
MIGUEL ARIAS, Council Vice President ANNALISA PEREA, Councilmember, District 1
____________________________________________ ______________________________________________
NICK RICHARDSON, Councilmember, District 6 NELSON ESPARZA, Councilmember, District 7
Office of Councilmember Tyler Maxwell
CERTIFICATE OF RECOGNITION
PRESENTED TO
Murphy Miller
Central Unified’s Biola-Pershing FFA
On behalf of the City of Fresno, we proudly congratulate you on your exceptional dedication and accomplishments with Central
Unified School District’s Biola-Pershing Future Farmers of America. Your commitment to cultivating leadership and
innovation within the field of agriculture reflects the values that sustain our community and its rich agricultural
heritage. Your hard work and passion play an instrumental role in shaping the future of this vital industry.
IN WITNESS WHEREOF, we have hereunto set our hands and affixed the seal of the City of Fresno, California, on this 30th day of January in the year 2025.
__________________________________________
TYLER MAXWELL, Councilmember, District 4
____________________________________________ ______________________________________________
JERRY P. DYER, Honorable Mayor MIKE KARBASSI, Council President
____________________________________________ ______________________________________________
MIGUEL ARIAS, Council Vice President ANNALISA PEREA, Councilmember, District 1
____________________________________________ ______________________________________________
NICK RICHARDSON, Councilmember, District 6 NELSON ESPARZA, Councilmember, District 7
Office of Councilmember Tyler Maxwell
CERTIFICATE OF RECOGNITION
PRESENTED TO
Ulises Nerey
Central Unified’s Biola-Pershing FFA
On behalf of the City of Fresno, we proudly congratulate you on your exceptional dedication and accomplishments with Central
Unified School District’s Biola-Pershing Future Farmers of America. Your commitment to cultivating leadership and
innovation within the field of agriculture reflects the values that sustain our community and its rich agricultural
heritage. Your hard work and passion play an instrumental role in shaping the future of this vital industry.
IN WITNESS WHEREOF, we have hereunto set our hands and affixed the seal of the City of Fresno, California, on this 30th day of January in the year 2025.
__________________________________________
TYLER MAXWELL, Councilmember, District 4
____________________________________________ ______________________________________________
JERRY P. DYER, Honorable Mayor MIKE KARBASSI, Council President
____________________________________________ ______________________________________________
MIGUEL ARIAS, Council Vice President ANNALISA PEREA, Councilmember, District 1
____________________________________________ ______________________________________________
NICK RICHARDSON, Councilmember, District 6 NELSON ESPARZA, Councilmember, District 7
Office of Councilmember Tyler Maxwell
CERTIFICATE OF RECOGNITION
PRESENTED TO
Alejandro Perez
Central Unified’s Biola-Pershing FFA
On behalf of the City of Fresno, we proudly congratulate you on your exceptional dedication and accomplishments with Central
Unified School District’s Biola-Pershing Future Farmers of America. Your commitment to cultivating leadership and
innovation within the field of agriculture reflects the values that sustain our community and its rich agricultural
heritage. Your hard work and passion play an instrumental role in shaping the future of this vital industry.
IN WITNESS WHEREOF, we have hereunto set our hands and affixed the seal of the City of Fresno, California, on this 30th day of January in the year 2025.
__________________________________________
TYLER MAXWELL, Councilmember, District 4
____________________________________________ ______________________________________________
JERRY P. DYER, Honorable Mayor MIKE KARBASSI, Council President
____________________________________________ ______________________________________________
MIGUEL ARIAS, Council Vice President ANNALISA PEREA, Councilmember, District 1
____________________________________________ ______________________________________________
NICK RICHARDSON, Councilmember, District 6 NELSON ESPARZA, Councilmember, District 7
Office of Councilmember Tyler Maxwell
CERTIFICATE OF RECOGNITION
PRESENTED TO
William Polson
Central Unified’s Biola-Pershing FFA
On behalf of the City of Fresno, we proudly congratulate you on your exceptional dedication and accomplishments with Central
Unified School District’s Biola-Pershing Future Farmers of America. Your commitment to cultivating leadership and
innovation within the field of agriculture reflects the values that sustain our community and its rich agricultural
heritage. Your hard work and passion play an instrumental role in shaping the future of this vital industry.
IN WITNESS WHEREOF, we have hereunto set our hands and affixed the seal of the City of Fresno, California, on this 30th day of January in the year 2025.
__________________________________________
TYLER MAXWELL, Councilmember, District 4
____________________________________________ ______________________________________________
JERRY P. DYER, Honorable Mayor MIKE KARBASSI, Council President
____________________________________________ ______________________________________________
MIGUEL ARIAS, Council Vice President ANNALISA PEREA, Councilmember, District 1
____________________________________________ ______________________________________________
NICK RICHARDSON, Councilmember, District 6 NELSON ESPARZA, Councilmember, District 7
Office of Councilmember Tyler Maxwell
CERTIFICATE OF RECOGNITION
PRESENTED TO
Sakura Raymundo
Central Unified’s Biola-Pershing FFA
On behalf of the City of Fresno, we proudly congratulate you on your exceptional dedication and accomplishments with Central
Unified School District’s Biola-Pershing Future Farmers of America. Your commitment to cultivating leadership and
innovation within the field of agriculture reflects the values that sustain our community and its rich agricultural
heritage. Your hard work and passion play an instrumental role in shaping the future of this vital industry.
IN WITNESS WHEREOF, we have hereunto set our hands and affixed the seal of the City of Fresno, California, on this 30th day of January in the year 2025.
__________________________________________
TYLER MAXWELL, Councilmember, District 4
____________________________________________ ______________________________________________
JERRY P. DYER, Honorable Mayor MIKE KARBASSI, Council President
____________________________________________ ______________________________________________
MIGUEL ARIAS, Council Vice President ANNALISA PEREA, Councilmember, District 1
____________________________________________ ______________________________________________
NICK RICHARDSON, Councilmember, District 6 NELSON ESPARZA, Councilmember, District 7
Office of Councilmember Tyler Maxwell
CERTIFICATE OF RECOGNITION
PRESENTED TO
Stevie-Marie Rendon
Central Unified’s Biola-Pershing FFA
On behalf of the City of Fresno, we proudly congratulate you on your exceptional dedication and accomplishments with Central
Unified School District’s Biola-Pershing Future Farmers of America. Your commitment to cultivating leadership and
innovation within the field of agriculture reflects the values that sustain our community and its rich agricultural
heritage. Your hard work and passion play an instrumental role in shaping the future of this vital industry.
IN WITNESS WHEREOF, we have hereunto set our hands and affixed the seal of the City of Fresno, California, on this 30th day of January in the year 2025.
City of Fresno
Staff Report
2600 Fresno Street
Fresno, CA 93721
www.fresno.gov
File #:ID 25-32 Agenda Date:1/30/2025 Agenda #:
CEREMONIAL PRESENTATION
Fresno Animal Center presents “Pet of the Month”
City of Fresno Printed on 2/7/2025Page 1 of 1
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01-30-2025
PRESENTED
City of Fresno
Staff Report
2600 Fresno Street
Fresno, CA 93721
www.fresno.gov
File #:ID 25-263 Agenda Date:1/30/2025 Agenda #:
REPORT TO THE CITY COUNCIL
FROM:TODD STERMER, City Clerk
Office of the City Clerk
SUBJECT
Photo displayed during Councilmember reports and comments by District 3
RECOMMENDATION
Attachment: Ted C. Willis Photo
City of Fresno Printed on 2/14/2025Page 1 of 1
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01-30-2025
PRESENTED
Ted C. Wills
City of Fresno
Staff Report
2600 Fresno Street
Fresno, CA 93721
www.fresno.gov
File #:ID 25-31 Agenda Date:1/30/2025 Agenda #:
REPORT TO THE CITY COUNCIL
FROM:JENNIFER K. CLARK, Director
Planning and Development Department
THROUGH:ASHLEY ATKINSON, Assistant Director
Planning and Development Department
BY:PHILLIP SIEGRIST, Manager
Development Services Division
SUBJECT
HEARING for Consideration of Text Amendment Application No. P23-03410 and related
Environmental Finding for Environmental Assessment No. P23-03410, amending Sections 15-2761
and 15-6802 of the Citywide Development Code, relating to Tobacco and Vapor Sales, Smoke
Shops, and Definitions.
1. ADOPTION of a finding set forth in Environmental Assessment No. P23-03410 dated January
15, 2025, that Text Amendment Application No. P23-03410 is exempt from the California
Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) of the CEQA Guidelines.
2. BILL (for introduction) amending Sections 15-2761 and 15-6802 of the Citywide Development
Code, relating to relating to Tobacco and Vapor Sales, Smoke Shops, and Definitions.
RECOMMENDATION
Staff is recommending approval of Text Amendment Application No. P23-03410 amending Sections
15-2761 and 15-6802 of the Citywide Development Code, relating to relating to Tobacco and Vapor
Sales, Smoke Shops, and Definitions and adoption of the related Environmental Assessment P23-
03410 dated January 15, 2025.
EXECUTIVE SUMMARY
Text Amendment Application No. P23-03410 proposes an amendment to Section 15-2761 of the
Development Code to establish additional regulations for tobacco and vapor sales and establish new
regulations for Smoke Shops including amortization of Existing Smoke Shops. In addition, the
proposed Text Amendment would add new terms and definitions to Section 15-6802 of the
Development Code.
BACKGROUND / ANALYSIS
Current regulations for tobacco and vapor sales included in Fresno Municipal Code (FMC) Section 15
-2761 only provide restrictions for signage when establishments are near sensitive uses. Specifically,
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THE FEB. 27, 2025 MEETING
AT 9:15 A.M.
NEW FILE ID: 25-132
File #:ID 25-31 Agenda Date:1/30/2025 Agenda #:
-2761 only provide restrictions for signage when establishments are near sensitive uses.Specifically,
any establishment located within 400 feet of a park,school (private or public),day care,or other
youth-sensitive places (e.g.,boys and girls club,youth activity centers)may not advertise smoking
sales (such as for tobacco,vapor,or similar products)or related paraphernalia in a manner visible
from the outside of the establishment, such as from a public thoroughfare, sidewalk, or parking lot.
Text Amendment Application No.P23-03410,as initiated by the Fresno City Council under Resolution
No.2022-052 (Exhibit A),pursuant to FMC Section 15-5803-A (1),proposes to amend Section 15-
6802 and Section 15-2761 of the FMC relating to terms and definitions and the sale of tobacco vapor
products.The purpose of the Amendment is to establish regulations for Smoke Shops,amortize
Existing Smoke Shop establishments,and allow up to seven (7)establishments per City Council
District. As proposed, the proposed Text Amendment includes:
I.Definitions and Applicability:
a.New Definitions:Multiple new definitions have been added to FMC Section 15-6802 to
make the Ordinance cohesive with State law and provide clarity on terms.
b.Types of Smoke Shops:Definitions for “Existing Smoke Shops”versus “New Smoke
Shops”and discusses how the various provisions of the Ordinance apply to each,
including amortization.
c.Applicability of Location Restrictions:A clarification has been added that Existing
Smoke Shops which change the nature of their business or wind down and close
operations are not subject to the location restrictions.
II.Procedural Changes:
a.Permitting:Details on how New Smoke Shops may be permitted have been added,
including the requirement to obtain both a Conditional Use Permit and a Business
License.
b.Public Notice of Available Permits:Provisions regarding how the City is to provide
notice to the public on the availability of Smoke Shop Conditional Use Permits for
Council Districts are outlined.This includes sections on lottery drawings whenever the
number of applications for a Conditional Use Permit exceeds the number of available
Conditional Use Permits for Smoke Shops.
c.Annual Inspections:Annual inspections shall be unannounced,and the Smoke Shop
Operator will be required to pay the City for the cost of said inspections.
d.Fines for Sales to Minors: The fine for sales to a minor shall be $2,500.
e.Fresno Municipal Code Citations:Includes references to FMC Sections regarding
administrative and criminal citations imposed on the business owner for violations of the
Fresno Municipal Code.
f.City Cost Recovery:The City shall be permitted to seek recovery of its costs for Code
Enforcement and public nuisance abatement.
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g.City Remedies:The City shall also be permitted to seek any and all remedies available
by law or in equity against Smoke Shop Owners and Operators which violate the
Ordinance or the FMC.
h.Administrative Oversight:Provisions have been added to permit the City Manager,or
designee,to issue rules and regulations interpreting and enforcing the provisions of the
Ordinance.
III.Substantive Changes:
a.Amortization of Existing Smoke Shops:Provisions regarding Amortization of Existing
Smoke Shops have been added.Amortization gives Existing Smoke Shops up to 18
months to change the nature of their business or wind them down and close operations.
Alternatively,Existing Smoke Shops may apply for a Conditional Use Permit alongside
New Smoke Shops.
1.Extension of Amortization Period:The amortization section provides an
opportunity for Existing Smoke Shop Owners/Operators to file a request for
extension from the initial 18 months provided if they need more time to wind
down their business.This request for extension will be handled via the appeals
system provided in the Development Code,with Planning Commission being
the initial Review Authority for the appeal.This section also provides the criteria
by which the Review Authority shall make their decision regarding granting or
denying the request for extension.
b.Numerical Limit on Smoke Shops:The limit on the number of Smoke Shops within any
given Council District is set at 7.Thus,given the existence of 7 Council Districts,no
more than 49 Smoke Shops may be permitted within the City.
1.Resolutions to Increase or Decrease Numerical Limit on Smoke Shops:A
section has been added which allows individual City Councilmembers to bring
forth a Resolution to City Council for approval,as a body,to increase the
number of Smoke Shops permitted in their District from 7.Similarly,individual
City Councilmembers would be permitted to bring forth a Resolution to City
Council for approval,as a body,to decrease the number of Smoke Shops
permitted in their District.However,the Ordinance does not allow the number
of Smoke Shops per District to be reduced to below 7.
c.Graffiti Abatement:A graffiti abatement requirement has been added which is imposed
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upon Smoke Shop Operators.
d.Security Footage:Smoke Shops shall be required to maintain security systems and
cameras,including a requirement to maintain security footage for longer than two
weeks when a criminal offense has taken place has been added.
e.Egregious Violations:Language regarding “egregious violations”has been added.
Egregious violations include problems caused by a Smoke Shop,such as illegal drug
activity,smoke and vapor product sales to minors,prostitution,gambling,and other
disturbances of the peace,which will subject the Smoke Shop to an immediate 30-day
suspension of their right to operate.Smoke Shops which have been closed pursuant to
this section will only be permitted to reopen upon a premises inspection and written
permission from the City Manager.If they do not remedy the egregious violation,or a
second egregious violation occurs,then the Director of Planning may pursue revocation
of the Conditional Use Permit.
f.Training Deadline:A 60-day time limit to obtain requisite training in tobacco sales for
owners, operators, and employees has been added.
g.Annual Training:An annual training requirement,which complies with State standards,
has been added for the Smoke Shop Operator and all employees.Smoke Shops shall
also be required to keep up to date records which prove all required individuals have
received training and shall furnish these records to the City during inspection and upon
reasonable request.
h.Prohibited Products:
i.Multiple items have been added as prohibited for Smoke Shops to sell,including
cannabis, nitrous oxide, and flavored tobacco as required by State law.
ii.The Fresno Police Department and the City’s Code Enforcement shall be vested
with the authority to seize and destroy flavored tobacco products.
iii.Smoke Shops which are found to be selling cannabis or cannabinoid
products,or flavored tobacco,shall immediately be subject to Conditional use
Permit revocation proceedings.
i.Non-Operating Rule:A “non-operating rule”has been added.If Smoke Shops shut
down voluntarily for more than one year,they must obtain a new CUP to begin
operating again.
Public Notice and Comment
A Legal Notice of this public hearing was published in the Fresno Bee on December 26,2024,
pursuant to Fresno Municipal Code Section 15-5007(D)(See Exhibit D).In addition,the notice was
posted on the City Clerk’s website and provided to the City’s distribution list for such notices.
Review by Committees and Commissions
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The active Council District Plan Implementation Committees all reviewed the proposed Text
Amendment, which applies Citywide. Their recommendations are listed below:
Council District 1
The item was presented on November 14,2024.While the Committee recommended approval of the
proposed Text Amendment,they did express concern for businesses closing under the proposed
amortization requirements and suggested funding or incentives be available to help operators
transition to a different business operation.In addition,the committee expressed concerns regarding
the allowance for individual City Councilmembers to increase the number of Smoke Shops permitted
in their respective Districts via Resolution.
Council District 3
The item was presented on November 26,2024.While the committee showed support for the Text
Amendment,they expressed concern for business establishments forced to close or change the
nature of their businesses under the proposed amortization requirements and suggested resources
be made available to aid in the transition.In addition,the committee expressed concerns regarding
the allowance for individual City Councilmembers to increase the number of Smoke Shops permitted
in their respective Districts via Resolution.They further suggested the Text Amendment include a
limitation on increasing the number of allowable Smoke Shops within a Council District.The
committee also expressed concern related to enforcement;especially after regular business hours
and on weekends.
Council District 4
The item was presented on November 19,2024.While the Committee showed support for the Text
Amendment,they expressed concern for business establishments forced to close or change the
nature of their businesses under the proposed amortization requirements and suggested resources
be made available to aid in the transition.In addition,the committee expressed concerns regarding
the allowance for individual City Councilmembers to increase the number of Smoke Shops permitted
in their respective Districts via Resolution.
Council District 5
The item was presented on November 27,2024.While the committee showed support for the Text
Amendment,they suggested Smoke Shops be required to follow similar security standards that retail
cannabis establishments are subject to including identification checks prior to entering an
establishment.In addition,the committee recommended Community and Religious Facilities be
included as a sensitive use within the applicable location restrictions.Further,the committee
recommended establishments be subject to probationary periods after a fine has been imposed and
implementation of a strike system used to determine when a Conditional Use Permit shall be
revoked.
Council District 6
The item was presented on November 13,2024.The Committee recommended approval of the
proposed Text Amendment with a recommendation that Annual Inspections and Fines be defined
more clearly.
Airport Land Use Commission
City staff consulted with ALUC staff and determined that formal ALUC review was not necessary,due
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to the limited scope of the Text Amendment.
Planning Commission
The Planning Commission considered this item at its regularly scheduled meeting on January 15,
2025,and recommended ?????.Please see Exhibit F for Planning Commission Resolution No.
??????.
ENVIRONMENTAL FINDING
An environmental assessment was prepared for this project in accordance with the requirements of
the California Environmental Quality Act (CEQA) Guidelines (See Exhibit E).
CEQA Guidelines Section 15061(b)(3)states that “CEQA applies only to projects which have the
potential for causing a significant effect on the environment”(the “common sense”exemption).
“Where it can be seen with certainty that there is no possibility that the activity in question may have
a significant effect on the environment, the activity is not subject to CEQA.”
The proposed Text Amendment is for the City Council to approve in order to modify the established
framework for future and existing business establishments engaged in the sale of tobacco and vapor
products (e.g., Smoke Shops) and does not commit the City to any specific project.
Therefore,it can be seen with certainty that there is no possibility that accepting this Text Amendment
may have a significant effect on the environment and staff has determined that the project is exempt
from CEQA pursuant to CEQA Guidelines Section 15061(b)(3).Staff has also determined that none
of the exceptions to Categorical Exemptions set forth in CEQA Guidelines Section 15300.2 apply to
this project.
FRESNO MUNICIPAL CODE FINDINGS
Section 15-5811 of the Fresno Municipal Code provides that the Planning Commission shall not
recommend, and the City Council shall not approve an application unless the proposed Text
Amendment meets Criteria A (1 and 2) of Section 15-5811. Please see Exhibit F for the Fresno
Municipal Code Findings.
CONCLUSION
The appropriateness of the proposed Text Amendment has been examined with respect to its
consistency with stated goals of the Fresno General Plan;compatibility with surrounding existing and
proposed uses;and avoidance or mitigation of potentially significant adverse environmental impacts.
These factors have been evaluated as described above and by the accompanying environmental
assessment.Based upon this evaluation it can be concluded that Text Amendment Application No.
P23-03410 is appropriate.
LOCAL PREFERENCE
Local preference was not considered because the Text Amendment does not include a bid or ward of
a construction or services contract.
City of Fresno Printed on 2/7/2025Page 6 of 7
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File #:ID 25-31 Agenda Date:1/30/2025 Agenda #:
FISCAL IMPACT
There is no fiscal impact to the City’s General Fund as a result of this action.
Attachments:
Exhibit A: Fresno City Council Resolution No. 2022-052
Exhibit B:Draft Ordinance amending Sections 15-2761 &15-6802 of the Citywide Development
Code
Exhibit C: Public Notice
Exhibit D: Fresno Municipal Code Findings
Exhibit E: Environmental Assessment No. P23-03410 [01-15-2024]
Exhibit F: Planning Commission Resolution No. ??????
City of Fresno Printed on 2/7/2025Page 7 of 7
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City of Fresno
Staff Report
2600 Fresno Street
Fresno, CA 93721
www.fresno.gov
File #:ID 25-101 Agenda Date:1/30/2025 Agenda #:
REPORT TO THE CITY COUNCIL
FROM:TODD STERMER, City Clerk
Office of the City Clerk
SUBJECT
Appearance by Armida Meza regarding “Homeless problem of Fresno” (District 4 Resident)
Attachment: Request to speak before Fresno City Council
City of Fresno Printed on 1/30/2025Page 1 of 1
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01-30-2025
APPEARED
From:
Subject:Request to Speak Before the Fresno City Council
Date:Tuesday, December 31, 2024 2:11:55 PM
External Email: Use caution with links and attachments
Name:Armida Meza
Address
Fresno, California 93710
District District 1
Phone
Email
Date You Wish to Speak Before the City
Council
January 30, 2025
Topic/Subject Resolving the Homeless population problem of
Fresno;.
Getting them off the streets and cleaning up our
City.
IP Address
User-Agent (Browser/OS)Google Chrome 131.0.0.0 / Windows
Referrer https://www.fresno.gov/cityclerk/
document with you from Google Docs.
January 30th, 2025 meeting with City Managers (x6) Homeless to Home Fress Project Plan
10:00 a.m.
THE HUB CENTER & CHURCH RULES
All rules are to be followed so there is accountability and no one gets sued.
Don't take it upon yourself to go against the rules:
1. You are not allowed to pick up or bring a Homeless person to your house.
2. You are not allowed to give any Homeless person rides anywhere. We may be able to
See if the City of Fresno can allow Homeless limited bus passes during certain intermittent
Times of the month and or seasons.
3. You are not allowed to be alone with a homeless person
4. You are not allowed to give the Homeless your personal phone number
Maybe something could be worked out to get a burner phone for counseling
5 Do not give them money or rent out a room to them from your home
6. All counseling should be done at the hub with other clergy
Or counselors being present. Never counsel people alone at the Hub Unless
there are at least 4 or more staffers around and a Security Guard
.
7. Office panic buttons need to be installed.
8. All Office counseling areas should have big open windows in each office
So anyone can look into the office for safety reasons.
9. We should have Security Guards available at the Hub.
10. Counseling should take place woman with women and men with men
11. Everyone who works at the Hub will have a background check..
12 We must have cameras in all areas necessary at the Hub
13. Entry check point needed to insure no weapons enter in.
IDEAS
FOR CITY OF FRESNO TO CONSIDER
RE: HOMELESSNESS
1. Put Neon text signs all across town and at high Schools to show how many people died in
Fresno, Ca. from Fentanyl (daily or weekly). It might serve as a warning and a deterrent to
citizens and to the homeless crowds, as well as to teens in school. These numbers will
fluctuate based on their consumption and fatality rate per measured time frame. However it will
serve in sending a message of warning to all citizens including our most vulnerable population
as well: the homeless population. Many may argue it's shameful for our city to advertise this
data. But in attempting to curtail drug usage and save lives, this issue should not be
controversial.
2. Put more trash cans out where the homeless gather like the Mission and Poverello House
etc. and other such areas where they hang out.
3. Make the Homeless pick up trash from the streets. It's probably trash they threw out
themselves like soiled clothing. Our sidewalks have become their hampers and trash cans.
Making the homeless pick up their trash could earn them credit for community Service. Or they
can get a city violation if they get caught throwing their clothes on sidewalks. If it's illegal for
drivers to litter; why is it not a violation to litter for pedestrians. Placing more trash cans
throughout the downtown areas might help the way the City looks. Getting them to comply will
need more training effort.
4. Put trackers on Obama phones so PD knows where the homeless are. Plus its a way to
Recoup lost or stolen phones. It could aid in crime solving as well. If such tracking already
exists then when the homeless get these phones, they should be able to show their homeless
ID for record keeping purposes. This is why ID is vital for our homeless population.
City of Fresno
Staff Report
2600 Fresno Street
Fresno, CA 93721
www.fresno.gov
File #:ID 25-143 Agenda Date:1/30/2025 Agenda #:
REPORT TO THE CITY COUNCIL
FROM:TODD STERMER, City Clerk
Office of the City Clerk
SUBJECT
Appearance by Reba Morris regarding “Homelessness in Fresno” (District 4 Resident)
Attachment: Request to speak before Fresno City Council
City of Fresno Printed on 2/7/2025Page 1 of 1
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01-30-2025
APPEARED
From:
To:
Subject:Request to Speak Before the Fresno City Council
Date:Tuesday, January 21, 2025 8:14:46 AM
External Email: Use caution with links and attachments
Name:Reba Morris
Address
Fresno, California 93726
District District 4
Phone
Email
Date You Wish to Speak Before the City Council January 30, 2025
Topic/Subject Homelessness in Fresno
IP Address
User-Agent (Browser/OS)Google Chrome 131.0.0.0 / Windows
Referrer https://www.fresno.gov/cityclerk/
City of Fresno
Staff Report
2600 Fresno Street
Fresno, CA 93721
www.fresno.gov
File #:ID 25-133 Agenda Date:1/30/2025 Agenda #:
2.-A.
REPORT TO THE CITY COUNCIL
FROM:TODD STERMER, City Clerk
Office of the City Clerk
SUBJECT
Approval of the minutes for January 9, 2025
Attachment:
Draft Minutes January 9, 2025, Regular Meeting
City of Fresno Printed on 2/7/2025Page 1 of 1
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01-30-2025
MA/AP 6-0
DISTRICT 5 (VACANT) ABSENT
APPROVED ON CONSENT
2600 Fresno Street
Fresno, CA 93721
www.fresno.gov
City of Fresno
Meeting Minutes
City Council
President - Annalisa Perea
Vice President - Mike Karbassi
Councilmembers:
Miguel Angel Arias, Tyler Maxwell, District 5 - Vacant,
Nick Richardson, Nelson Esparza
City Manager - Georgeanne A. White
City Attorney - Andrew Janz
City Clerk - Todd Stermer, CMC
9:00 AM Council ChambersThursday, January 9, 2025
Regular Meeting
The City Council met in regular session in the Council Chamber, City Hall, on the
date and time above written.
9:10 A.M. ROLL CALL
Councilmember Annalisa Perea
Council President Mike Karbassi
Vice President Miguel Angel Arias
Councilmember Tyler Maxwell
Councilmember Nick Richardson
Councilmember Nelson Esparza
Present:6 -
Council District 5 is vacant pending a March 18, 2025, special election.
Invocation by Bhai Sarbjiet Singh with the Sikh Institute Fresno
Bhai Sarbjiet Singh gave the invocation.
Pledge of Allegiance to the Flag
County Board Supervisor Garry Bredefeld led the Pledge of Allegiance.
APPROVE AGENDA
CITY CLERK STERMER ANNOUNCED THE FOLLOWING CHANGES TO
THE AGENDA:
City of Fresno ***Subject to Mayoral Veto Page 1
January 9, 2025City Council Meeting Minutes
2-B (ID 25-12) regarding adoption of the 585th Amendment to the Master
Fee Schedule the Airports Public Safety Officer fee should reflect $57.73
instead of $56.54 and the Public Safety Vehicle and Officer fee should
reflect $61.73 instead of $60.54 per the Fresno Airport Safety Officer
Association (FAPSOA - Unit 11) MOU increase adopted by Council on
11/7/2024 (ID 24-1524).
THE FOLLOWING ITEMS WERE REMOVED FROM THE AGENDA:
2-S (ID 25-26) approving the Final Map of Tract No. 6410 – was removed
and continued to the January 30, 2025, by staff.
5-B (ID 25-11) anticipated litigation regarding Josie Rodriguez v. City of
Fresno, Risk File No. RM2022043424 (Police Department) – was removed
and continued to the January 30, 2025, by staff.
THE FOLLOWING CONSENT CALENDAR ITEMS WERE MOVED TO THE
CONTESTED CONSENT CALENDAR FOR FURTHER DISCUSSION:
2-B (ID 25-12) regarding adoption of the 585th Amendment to the Master
Fee Schedule – was moved to the contested consent by Councilmembers
Arias and Maxwell.
2-D (ID 25-18) pertaining to the Garage 9 Renovation Project (Bid File No.
12500982) (City Council District 3) - was moved to contested consent by
Councilmember Arias.
2-H (ID 25-16) adopting the 30th amendment to the Annual Appropriation
Resolution No. 2024-122 to appropriate $1,136,000 to the FY 2025 Fire
Department budget – was moved to contested consent by Vice President
Karbassi.
2-N (ID 25-19) regarding approval of a consultant services agreement with
Beacon Integrated Professional Resources Incorporated, dba Hamner
Jewell & Associates - was moved to contested consent by Councilmember
Arias.
City of Fresno ***Subject to Mayoral Veto Page 2
January 9, 2025City Council Meeting Minutes
2-P (ID 25-5) regarding the first amendment to consultant services
agreement with Southwest Strategies LLC., to extend the agreement to
December 31, 2026 - was moved to contested consent by Councilmember
Arias.
CITY ATTORNEY JANZ ANNOUNCED THE FOLLOWING CHANGE TO
THE AGENDA:
2-G (ID 25-56) adopting the 32nd amendment to the Annual Appropriation
Resolution (AAR) No. 2024-122 appropriating $484,600 for the Tobacco
State Grant in Fiscal Year 2025 - the Police Department was added as a
co-sponsor.
On motion of Councilmember Arias, seconded by Councilmember
Richardson, the Agenda was APPROVED AS AMENDED. The motion
carried by the following vote:
Aye:Perea, Karbassi, Arias, Maxwell, Richardson and Esparza6 -
COMMENTS BY DEPARTING FORMER COUNCILMEMBERS
Former District 5 Councilmember, Luis Chavez
Former District 5 Councilmember Chavez addressed the Council with
departing remarks.
Former District 6 Councilmember, Garry Bredefeld
Former District 6 Councilmember Bredefeld addressed the Council with
departing remarks.
CEREMONIAL PRESENTATIONS
Installation and Administration of Oaths of Office for Mayor-Elect and
Councilmembers-Elect with Statements by those Newly Sworn
ID 25-52 Mayor Jerry Dyer
Oath Administered by Diane Dyer, Jeremy Dyer and Janelle Hastings
OATH ADMINISTERED
ID 25-49 Councilmember Mike Karbassi - District 2
Oath Administered by Interim Police Chief Mindy Casto
OATH ADMINISTERED
City of Fresno ***Subject to Mayoral Veto Page 3
January 9, 2025City Council Meeting Minutes
ID 25-50 Councilmember Tyler Maxwell - District 4
Oath Administered by Fernanda Santiago
OATH ADMINISTERED
ID 25-51 Councilmember Nick Richardson - District 6
Oath Administered by Thomas L. Richardson
OATH ADMINISTERED
ID 25-53 Election of Council President and Vice President
VICE PRESIDENT KARBASSI ELECTED AS COUNCIL PRESIDENT
COUNCILMEMBER ARIAS ELECTED AS VICE PRESIDENT
On motion of Council President Perea to appoint Vice President
Karbassi as Council President, and Councilmember Arias as Vice
President, seconded by Councilmember Esparza, that the above
Action Item be APPROVED. The motion carried by the following vote:
Aye:Perea, Karbassi, Arias, Maxwell, Richardson and Esparza6 -
ID 25-65 Election of Chair and Vice Chair to the Successor Agency to the
Redevelopment Agency of the City of Fresno
MEMBER ARIAS WAS RE-ELECTED CHAIR
MEMBER ESPARZA WAS ELECTED VICE CHAIR
On motion of Council President Karbassi to appoint Vice President
Arias as Chair, and Councilmember Esparza as Vice Chair to the
Successor Agency to the Redevelopment Agency of the City of
Fresno, seconded by Councilmember Maxwell, that the above Action
Item be APPROVED. The motion carried by the following vote:
Aye:Perea, Karbassi, Arias, Maxwell, Richardson and Esparza6 -
Closing Invocation by Rod Lowery, CEO of the Resiliency Center of Fresno
CLOSING INVOCATION NOT GIVEN
1:00 P.M. MEETING TO RESUME IN CHAMBERS
CEREMONIAL PRESENTATIONS (CONTINUED)
ID 25-34 Proclamation for “Manchester Gate Elementary and the Fresno Unified
Cross-Country Program Day”
City of Fresno ***Subject to Mayoral Veto Page 4
January 9, 2025City Council Meeting Minutes
PRESENTED
COUNCILMEMBER REPORTS AND COMMENTS
Vice President Arias Reports and Comments: Welcomed Councilmember
Richardson as the new District 6 Councilmember. Discussed the successful
operation of the downtown ice rink. Acknowledged Public Works
Department for activating the traffic signal at the Clinton and Valentine.
Reported ongoing construction of several parks funded by Measure “P”, and
current road reconstruction on Jensen Avenue. Requested a moment of
silence in honor of President Jimmy Carter, the 39th president of the United
States.
Councilmember Maxwell Reports and Comments: Recognized outgoing
Council President Pera for her leadership in 2024, and for passing the
tax-sharing agreement with the County of Fresno. Congratulated incoming
Council President Karbassi. Welcomed Councilmember Richardson and
looked forward to collaborating with him.
Council President Karbassi Reports and Comments: Expressed excitement
about Councilmember Richardson joining the council, and acknowledged
his service to the country. Discussed shared district responsibilities and
expressed eagerness to collaborate. Recognized notable elected officials
present, and acknowledged the large viewing crowd.
Councilmember Esparza Reports and Comments: Welcomed
Councilmember Richardson. Highlighted the tragic wildfires in Los
Angeles. Expressed gratitude to all first responders, including Fresno's Fire
Department, for their heroic efforts and wished for their safe return.
Announced toy giveaways at Manchester Center in partnership with Central
California Binational, and at Burroughs Elementary School. Discussed the
Hmong New Year celebration and emphasized the event's importance in
honoring traditions and community diversity. Attended the swearing-in of
new members and promotions within the Fresno Police Department in
December. Discussed various community events and initiatives that
strengthen the district and the city.
MAYOR/MANAGER REPORTS AND COMMENTS
City of Fresno ***Subject to Mayoral Veto Page 5
January 9, 2025City Council Meeting Minutes
Mayor Dyer Reports and Comments: Welcomed the District 6
Councilmember Richardson to the dais and highlighted his service to the
country. Expressed appreciation for the council's support in making public
safety a priority by providing resources for the Police Department.
Expressed gratitude for the renaming of the Regional Training Center in his
honor. Announced a significant reduction in crime over the past three years
including a 68% reduction in shootings, and a 60% reduction in murders.
Announced an upcoming meeting with the California Secretary of
Transportation to address homelessness and keeping freeways free of tents.
City Manager White Reports and Comments: Expressed gratitude to the
council for the work accomplished together in 2024. Welcomed
Councilmember Richardson. Acknowledged the number of city employees
watching council meetings during their work in order to assist and remain
engaged. Expressed optimism and enthusiasm for a successful 2025,
emphasizing teamwork and ongoing dedication.
1. SCHEDULED COUNCIL HEARINGS AND MATTERS
9:10 A.M.
ID 25-22 HEARING to adopt resolutions and ordinance to annex territory and levy a
special tax regarding City of Fresno Community Facilities District Number
11, Annexation Number 152 (Final Tract Map Number 6360) (Located on
the northeast corner of East McKinley Avenue Alignment and North
Armstrong Avenue) (Council District 7)
1. ***RESOLUTION - to Annex Territory to Community
Facilities District No. 11 and Authorizing the Levy of a
Special Tax for Annexation No. 152 (Subject to Mayor’s
Veto)
2. ***RESOLUTION - Calling Special Mailed-Ballot Election
(Subject to Mayor’s Veto)
3. ***RESOLUTION - Declaring Election Results (Subject to Mayor’s
Veto)
4. ***BILL - (For introduction and adoption) - Levying a Special Tax for
the Property Tax Year 2024-2025 and Future Tax Years Within and
Relating to Community Facilities District No. 11, Annexation No.
152 (Subject to Mayor’s Veto)
The above item was called to order at 1:25 P.M. and was presented to
Council by Supervising Engineering Technician Gonzales. Upon call, no
members of the public addressed Council. Public comment closed at 1:28
City of Fresno ***Subject to Mayoral Veto Page 6
January 9, 2025City Council Meeting Minutes
P.M.
There was no council discussion.
RESOLUTION 2025-1 ADOPTED
RESOLUTION 2025-2 ADOPTED
RESOLUTION 2025-3 ADOPTED
BILL B-1 INTRODUCED / ADOPTED AS ORDINANCE 2025-1
On motion of Councilmember Esparza, seconded by Councilmember
Maxwell, that the above Action Item be ADOPTED. The motion carried
by the following vote:
Aye:Karbassi, Arias, Maxwell, Richardson and Esparza5 -
Absent:Perea1 -
9:15 A.M. JOINT MEETING OF THE CITY COUNCIL, THE CITY OF
FRESNO IN ITS CAPACITY AS HOUSING SUCCESSOR TO THE
REDEVELOPMENT AGENCY OF THE CITY OF FRESNO, THE
SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF
THE CITY OF FRESNO, AND FRESNO REVITALIZATION
CORPORATION
ID 25-35 Successor Agency to the Redevelopment Agency of the City of Fresno and
Fresno Revitalization Corporation (FRC) consider adopting:
1. RESOLUTION - Approving the Recognized Obligation Payment
Schedule 25-26
The above item was called to order at 1:28 P.M. and was presented to
Council by Redevelopment Administrator Murphey. Upon call, no members
of the public addressed Council. Public comment closed at 1:28 P.M.
Council discussed the $1 million revenue generated and how it is allocated
and whether the agency was nearing the conclusion of the process.
RESOLUTION SA-56 ADOPTED (Successor Agency)
RESOLUTION FRC-24 ADOPTED (Fresno Revitalization Corporation)
FRESNO REVITALIZATION CORPORATION VOTE: On motion of Member
Dyer, seconded by Member Arias, the above item was adopted. The motion
City of Fresno ***Subject to Mayoral Veto Page 7
January 9, 2025City Council Meeting Minutes
carried by the following vote:
Aye: 6 - Karbassi, Arias, Maxwell, Richardson, Esparza, Dyer
Absent: 1 - Perea
On motion of Vice President Arias, seconded by Councilmember
Richardson, that the above Action Item be ADOPTED. The motion
carried by the following vote:
Aye:Karbassi, Arias, Maxwell, Richardson and Esparza5 -
Absent:Perea1 -
1:00 P.M.
ID 25-59
The above item was called to order at 1:33 P.M. and was presented to
Council by Personnel Services Director Malhi. Upon call, no members of
the public addressed Council. Public comment closed at 1:34 P.M.
There was no council discussion.
RESOLUTION 2025-4 ADOPTED
On motion of Vice President Arias, seconded by Councilmember
Maxwell, that the above Action Item be ADOPTED. The motion carried
by the following vote:
Aye:Karbassi, Arias, Maxwell, Richardson and Esparza5 -
Absent:Perea1 -
1:30 P.M.
ID 25-48 Appearance by Kamryn A. Rodriguez regarding “Gun violence in schools”
(District 4 Resident)
APPEARED
1:33 P.M.
ID 25-8 Appearance by Susan Monet regarding “Animal shelter/reopen stray
intake” (District 7 Resident)
DID NOT APPEAR
City of Fresno ***Subject to Mayoral Veto Page 8
January 9, 2025City Council Meeting Minutes
1:36 P.M.
ID 25-68 Appearance by Matilda Garcia regarding “Emergency Rental Assistance
Application” (District 5 Resident)
APPEARED
2. CONSENT CALENDAR
Upon call, for public comment on all Consent, Contested Consent and
Closed Session items, the following members of the public addressed
Council: Adel Rosendez (2-P).
APPROVAL OF THE CONSENT CALENDAR
On motion of Vice President Arias, seconded by Councilmember
Esparza, the CONSENT CALENDAR was hereby adopted by the
following vote:
Aye:Karbassi, Arias, Maxwell, Richardson and Esparza5 -
Absent:Perea1 -
2.-A.ID 25-9 Approval of the minutes for December 5, 2024, Regular Meeting,
December 12, 2024, Regular Meeting and December 13, 2024, Special
Meeting
APPROVED ON CONSENT CALENDAR
2.-C.ID 25-10 Actions pertaining to the Jaswant Singh Khalra and Regional Sports
Complex Cricket Pitch Project (Bid File No. 12500870) (Council District 3):
1.Adopt a finding of Categorical Exemption per staff ’s determination
pursuant to section 15301/Class 1 of the California Environmental
Quality Act (CEQA) Guidelines for the Jaswant Singh Khalra Cricket
Pitch Project;
2.Adopt a finding of Categorical Exemption per staff ’s determination
pursuant to section 15301/Class 1 of the California Environmental
Quality Act (CEQA) Guidelines for the Regional Sports Complex
Cricket Pitch Project;
3.Award a construction contract in the amount of $165,785.00, to
Juarez Brothers General Engineering, Inc. of Madera, California as
the lowest responsive and responsible bidder for the Jaswant Singh
Khalra and Regional Sports Complex Cricket Pitch Project.
APPROVED ON CONSENT CALENDAR
2.-E.ID 25-21 Actions pertaining to the acquisitions of fee title interest of parcels to
City of Fresno ***Subject to Mayoral Veto Page 9
January 9, 2025City Council Meeting Minutes
benefit the Blackstone McKinley BNSF Grade Separation Project (Council
Districts 1 and 7);
1. Approve the Agreement for Purchase and Sale of Real Property
and Escrow Instructions to acquire fee title interest of seven (7)
improved parcels, collectively 3.0-acres (130,716 square feet),
identified as Assessor’s Parcel Numbers 451-071-07, 451-071-08,
451-071-09, 451-071-10, 451-071-23, 451-071-25, and 451-071-
38, owned by Rocking Rail LLC, a California limited liability
company for an amount of $4,500,000.00, for the construction of the
Blackstone McKinley BNSF Grade Separation Project.
2. Approve the Agreement for Purchase and Sale of Improvements
Pertaining to the Realty and Business Furniture, Fixtures, and
Rolling Stock and Escrow Instructions to acquire all improvements,
business fixtures and rolling stock as identified in the associated Bill
of Sale, owned by Jet Black Logistics, Inc., a California corporation,
doing business as E-Z Haul Ready Mix and Star Building Supplies
for an amount of $2,872,250.00 for the construction of the
Blackstone McKinley BNSF Grade Separation Project.
APPROVED ON CONSENT CALENDAR
2.-F.ID 25-23 Actions pertaining to Job Order Contracting for General Construction
contracts for the Capital Projects Department on City of Fresno capital
improvement projects for a term of three years with two one-year optional
extensions (Bid File 12500543) (Citywide):
1. Award a Job Order Contracting contract with Ardent General,
Inc., of Fresno, California in an amount not to exceed
$6,000,000 per year;
2. Award a Job Order Contracting contract with Newton
Construction & Management, Inc., of San Luis Obispo, California
in an amount not to exceed $6,000,000 per year;
3. Award a Job Order Contracting contract with Aventus NV, Inc., of
Boulder City, Nevada in an amount not to exceed $6,000,000
per year;
4. Award a Job Order Contracting contract with Puma
Construction, of Fresno, California in an amount not to exceed
$6,000,000 per year;
5. Award a Job Order Contracting contract with Walsh Montgomery
Construction, Inc., of Clovis, California in an amount not to
exceed $6,000,000 per year.
APPROVED ON CONSENT CALENDAR
2.-G.ID 25-56 ***RESOLUTION - Adopting the 32nd amendment to the Annual
Appropriation Resolution (AAR) No. 2024-122 appropriating $484,600 for
the Tobacco State Grant in Fiscal Year 2025 (Requires Five Affirmative
City of Fresno ***Subject to Mayoral Veto Page 10
January 9, 2025City Council Meeting Minutes
Votes) (Subject to Mayor’s veto)
During the approval of the agenda City Attorney Janz announced the Police
Department was added as a co-sponsor.
RESOLUTION 2025-6 ADOPTED
APPROVED ON CONSENT CALENDAR
2.-I.ID 25-13 ***RESOLUTION - Authorizing the City Manager or designee to apply for a
grant of up to $100,000 from the California Coastal Conservancy Explore
the Coast grant program to provide experiences at the California Coast to
older adults, and authorizing the City Manager or designee to accept grant
funds and sign all related documents on behalf of the City (Citywide)
(Subject to Mayor’s Veto)
RESOLUTION 2025-8 ADOPTED
APPROVED ON CONSENT CALENDAR
2.-J.ID 25-14 ***RESOLUTION- Authorizing the submission of a grant application of up to
$400,000 to the State of California Office of Traffic Safety to fund bicycle
and pedestrian safety programming and authorizing the City Manager or
designee to accept grant funds and sign all related documents on behalf of
the City (Citywide) (Subject to Mayor’s Veto)
RESOLUTION 2025-9 ADOPTED
APPROVED ON CONSENT CALENDAR
2.-K.ID 25-15 ***RESOLUTION - Authorizing the submission of a proposal to Fresno
Unified School District requesting reimbursement of up to $400,000 for
providing aquatics programming at up to seven high schools during
Summer 2025 and authorizing the City Manager or designee to accept
reimbursement funds and sign all related documents on behalf of the City
(Citywide) (Subject to Mayor’s Veto)
RESOLUTION 2025-10 ADOPTED
APPROVED ON CONSENT CALENDAR
2.-L.ID 25-54 Actions pertaining to the Fresno City Firefighters Association, IAFF-Basic
for Unit 5
1. ***Adopt a successor Memorandum of Understanding between the City
of Fresno and Fresno City Firefighters Association (Non-Management Fire
- Unit 5) (Subject to Mayor’s veto)
2. ***RESOLUTION - Adopt the Ninth Amendment to FY 2025 Salary
Resolution No. 2024-120, amending Exhibit 5, Unit 5 - Non-Management
City of Fresno ***Subject to Mayoral Veto Page 11
January 9, 2025City Council Meeting Minutes
Fire (IAFF), to provide a salary increase for respective classes as required
by the Memorandum of Understanding between the City of Fresno and
Fresno City Firefighters Association (Non-Management Fire - Unit 5)
(Subject to Mayor’s veto)
RESOLUTION 2025-11 ADOPTED
APPROVED ON CONSENT CALENDAR
2.-M.ID 25-55 Actions pertaining to the Fresno City Firefighters Association,
IAFF-Management for Unit 10
1. ***Adopt a successor Memorandum of Understanding between the City
of Fresno and Fresno City Firefighters Association (Fire Management -
Unit 10) (Subject to Mayor’s veto)
2. ***RESOLUTION - Adopt the Tenth Amendment to FY 2025 Salary
Resolution No. 2024-120, amending Exhibit 10, Unit 10 - Fire Management
(IAFF), to provide a salary increase for respective classes as required by
the Memorandum of Understanding between the City of Fresno and Fresno
City Firefighters Association (Fire Management - Unit 10) (Subject to
Mayor’s veto)
RESOLUTION 2025-12 ADOPTED
APPROVED ON CONSENT CALENDAR
2.-O.ID 25-20 Actions pertaining to Master Planning Services for the Department of
Public Utilities Operations and Maintenance Facility at 1626 E Street (Bid
File 12400574) (Council District 3):
1. Approve a consultant services agreement with William Duff
Architects, for an amount not to exceed $164,816.00, inclusive of a
contingency amount of $15,000.00, for Master Planning Services for
the Department of Public Utilities Operations and Maintenance
Facility at 1626 E Street.
2. ***RESOLUTION - Adopt the 31st Amendment to the Annual
Appropriation Resolution No. 2024-122 to appropriate $136,500.00
for Master Planning Services for the Department of Public Utilities
Operations and Maintenance Facility at 1626 E Street. (Requires 5
Affirmative Votes) (Subject to Mayor’s Veto)
RESOLUTION 2025-13 ADOPTED
APPROVED ON CONSENT CALENDAR
2.-Q.ID 25-57 Approval of $271,066.59 of additional funding for Sodium Hypochlorite
Requirements Contract with Univar USA, Inc. to cover outstanding invoices,
for a total contract amount of $1,670,488.59 that incurred during vendor
transition. (Bid File 9487) (Citywide)
City of Fresno ***Subject to Mayoral Veto Page 12
January 9, 2025City Council Meeting Minutes
APPROVED ON CONSENT CALENDAR
2.-R.ID 25-25 RESOLUTION - Approving the Final Map of Tract No. 6360, and accepting
dedicated public uses offered therein except for dedications offered
subject to City acceptance of developer installed required improvements -
located on the northeast corner of North Armstrong Avenue and East
McKinley Avenue. (Council District 7)
RESOLUTION 2025-14 ADOPTED
APPROVED ON CONSENT CALENDAR
2.-S.ID 25-26 RESOLUTION - Approving the Final Map of Tract No. 6410, and accepting
dedicated public uses offered therein except for dedications offered
subject to City acceptance of developer installed required improvements -
located near the northeast corner of South Peach Avenue and East Church
Avenue (Council District 5)
During the approval of the agenda, City Clerk Stermer announce this item
was continued to January 30, 2024, by staff.
CONTINUED
2.-T.ID 25-69 ***RESOLUTION - Authorizing the submission of all subaward agreements
from Alliance for Renewable Clean Hydrogen Energy Systems (ARCHES)
and authorizing the City Manager, or designee, to execute all subaward
agreements, including all necessary documents, to accept funds for fuel cell
electric buses (FCEB) and planning, engineering, and construction of
hydrogen fueling infrastructure, on behalf of the City (Subject to Mayor’s
Veto).
RESOLUTION 2025-15 ADOPTED
APPROVED ON CONSENT CALENDAR
2.-U.ID 25-64 Approve the reappointment of Wyatt Meadows to the Fresno Regional
Workforce Development Board with a term ending November 1, 2026.
APPROVED ON CONSENT CALENDAR
CONTESTED CONSENT CALENDAR
2.-B.ID 25-12 ***RESOLUTION - Adopting the 585th Amendment to the Master Fee
Schedule Resolution No. 80-420 to Add, Adjust, Move, Revise or Delete
Various Fees (Subject to Mayor’s Veto).
During approval of the agenda, City Clerk Stermer announced corrections to
page 8 of the Master Fee Schedule: the Airports Public Safety Officer fee
City of Fresno ***Subject to Mayoral Veto Page 13
January 9, 2025City Council Meeting Minutes
should reflect $57.73 instead of $56.54 and the Public Safety Vehicle and
Officer fee should reflect $61.73 instead of $60.54. The corrections reflect
the Fresno Airport Safety Officer Association (FAPSOA - Unit 11) MOU
increase adopted by Council on 11/7/2024 (ID 24-1524).
Councilmembers Arias and Maxwell moved the above item to Contested
Consent for clarification on the swim lesson program.
Council discussion included: the number of annual and repeat participants;
if the Youth Sports Fee Waiver program could be applied to swimming;
confirmation that eligibility extends to all children in a family; proposed
$100 security deposit for advanced reservations; whether the fees are
reasonable; free first lessons with fees for additional lessons potentially
creating a financial burden; support of $400,000 in annual funding from
Fresno Unified; opposition to the swim fee increase by the Measure “P”
Commission; the possibility of utilizing Measure “P” funds to cover the
$10,000 cost of the swim program instead of increasing fees; the logic
behind the inline hockey rink fees at Cary Park; charges for out-of-city
residents using Camp Fresno; listing zero fee services on the master fee
schedule, and; the cost for replacing lost and stolen garbage cans.
Councilmember Maxwell, and Vice President Arias motioned to make the
following amendments, (i) add free trashcan repair to the DPU Fees, (ii) add
free trash can theft replacement to the DPU Fees, (iii) remove the proposed
changes to the swimming fees, and (iv) remove any change to the text
regarding in-line hockey.
RESOLUTION 2025-5 ADOPTED
On motion of Councilmember Maxwell, seconded by Vice President
Arias, that the above Action Item be ADOPTED AS AMENDED. The
motion carried by the following vote:
Aye:Karbassi, Arias, Maxwell, Richardson and Esparza5 -
Absent:Perea1 -
2.-D.ID 25-18 Actions pertaining to the Garage 9 Renovation Project (Bid File No.
12500982) (City Council District 3):
1. Adopt a finding of Categorical Exemption per staff’s determination
City of Fresno ***Subject to Mayoral Veto Page 14
January 9, 2025City Council Meeting Minutes
pursuant to section 15301/Class 1 of the California Environmental
Quality Act (CEQA) Guidelines, Environmental Assessment No.
HG00020, for the Garage 9 Renovation Project;
2. Approve substitution of the listed subcontractor Door Masters, Inc.
with Katch Environmental Inc. dba Katch General to self-perform the
work associated with doors, frames and hardware;
3. Award a construction contract in the amount of $3,462,279.00, to
Katch Environmental Inc. dba Katch General of Fresno, California
as the lowest responsive and responsible bidder for the Garage 9
Renovation Project.
Vice President Arias moved the above item to Contested Consent for
updates on the garage renovations.
Council discussion included: Clarifying the scope of work and ensuring its
alignment with expectations with additional funding. Concerns the project
focuses heavily on creating and upgrading office space rather than making
improvements to the parking structure itself. What portion of the budget is
allocated to actual enhancements of the parking facilities. Future structural
integrity of the garage, and concerns about funding sources to address such
issues. Current condition of the garage. Assurance that after the planned
renovations, the garage would remain accessible to the public without
foreseeable structural issues.
APPROVED
On motion of Vice President Arias, seconded by Councilmember
Maxwell, that the above Action Item be APPROVED. The motion
carried by the following vote:
Aye:Karbassi, Arias, Maxwell, Richardson and Esparza5 -
Absent:Perea1 -
2.-H.ID 25-16
***RESOLUTION - Adopting the 30th Amendment to the Annual
Appropriation Resolution No. 2024-122 to appropriate $1,136,000
to the FY 2025 Fire Department budget for out of county responses
under the California Firefighters Assistance Agreement (Requires 5
Affirmative Votes) (Subject to Mayor’s Veto).
Council President Karbassi moved the above item to Contested Consent for
clarification regarding the funds.
City of Fresno ***Subject to Mayoral Veto Page 15
January 9, 2025City Council Meeting Minutes
Council discussion included: Fresno's response to the Southern California
fires. Allocation and potential use of reimbursed funds related to firefighter
operations, and fire mitigation efforts. Where reimbursed money goes,
confirming it is placed in the general fund but earmarked for
department-specific uses. Whether the funds could be allocated specifically
for health and wellness initiatives for firefighters. Urgency of reviewing the
item with a suggestion to revisit it on January 30, 2025, to explore additional
ideas for revenue allocation. Whether the department is on pace to spend or
overspend its overtime budget. Recognition of the significant mitigation
work done in recent years to prevent fires, particularly bluff fires, and
requests for details on these efforts.
RESOLUTION 2025-7 ADOPTED
On motion of Council President Karbassi, seconded by
Councilmember Esparza, that the above Action Item be ADOPTED.
The motion carried by the following vote:
Aye:Karbassi, Arias, Maxwell, Richardson and Esparza5 -
Absent:Perea1 -
2.-N.ID 25-19 Approve a Consultant Services Agreement between the City of Fresno and
Beacon Integrated Professional Resources Incorporated, dba Hamner
Jewell & Associates, in the amount of $125,000 to perform Professional
Relocation and Real Estate Acquisition Consultant Services on an
as-needed basis for various projects and real estate acquisitions with a
contract performance period through January 31, 2028; and authorize the
City Manager or designee to sign the agreement on behalf of the City.
Vice President Arias moved the above item to Contested Consent for
clarification on the agreement.
Council discussion included: Proposed contract to hire a consultant for real
estate acquisition and relocation services for the city. How the city has
managed these services in the past, including Public Works' use of
consultants for tasks like infrastructure projects. Importance of consultants
background for properly handling relocations, particularly for those
transitioning out of shelters, to prevent public complaints or displacement
without adequate support. Need for experienced consultants to ensure
smooth and effective property acquisition and relocation efforts.
City of Fresno ***Subject to Mayoral Veto Page 16
January 9, 2025City Council Meeting Minutes
APPROVED
On motion of Vice President Arias, seconded by Councilmember
Maxwell, that the above Action Item be APPROVED. The motion
carried by the following vote:
Aye:Karbassi, Arias, Maxwell, Richardson and Esparza5 -
Absent:Perea1 -
2.-P.ID 25-5 Approve the First Amendment to Consultant Services Agreement with
Southwest Strategies LLC., to extend the agreement to December 31,
2026, and increase the contract amount by $128,693.00 to continue
education and outreach services for organics and food waste recycling, for
a revised total contract amount of $428,437.00. (Citywide)
Vice President Arias moved the above item to Contested Consent to get
clarification on the agreement.
Council discussion included: Extending Southwest Strategies' contract for
outreach services related to organic waste. The scope and effectiveness of
their outreach efforts, noting that visible efforts seem limited to stickers on
garbage cans. Clarification on the extension amount, which includes
$128,000 in additional grant funding. If the extension is fully grant-funded,
with no rate payer funds used.
APPROVED
On motion of Vice President Arias, seconded by Council President
Karbassi, that the above Action Item be APPROVED. The motion
carried by the following vote:
Aye:Karbassi, Arias, Maxwell, Richardson and Esparza5 -
Absent:Perea1 -
3. GENERAL ADMINISTRATION
3.-A.ID 25-61 Actions pertaining to the City of Fresno Professional Employees
Association, Inc., CFPEA for Unit 13
1. ***Adopt a successor Memorandum of Understanding between the City
of Fresno and City of Fresno Professional Employees Association, Inc.
(Exempt Supervisory and Professional and Non-Exempt Professional - Unit
13) (Subject to Mayor’s veto)
2. ***RESOLUTION: Adopt the Eleventh Amendment to FY 2025 Salary
City of Fresno ***Subject to Mayoral Veto Page 17
January 9, 2025City Council Meeting Minutes
Resolution No. 2024-120, amending Exhibit 13-1, Exempt Supervisory and
Professional, and Exhibit 13-2, Non-Exempt Professional, to provide a
salary increase for respective classes as required by the Memorandum of
Understanding between the City of Fresno and City of Fresno Professional
Employees Association, Inc. (Exempt Supervisory and Professional and
Non-Exempt Professional - Unit 13) (Subject to Mayor’s veto)
There was no staff presentation. Upon call no members of the public
addressed the council.
There was no Council discussion. Vice President Arias read the following in
to the record: [a]lthough we suspend the Labor Management Act on the
timing issue, staff has provided us all the financial disclosures, and the full
cost of the labor agreement as proposed and tentatively approved.
RESOLUTION 2025-16 ADOPTED
On motion of Councilmember Esparza, seconded by Councilmember
Maxwell, that the above Action Item be ADOPTED. The motion carried
by the following vote:
Aye:Karbassi, Arias, Maxwell, Richardson and Esparza5 -
Absent:Perea1 -
UNSCHEDULED COMMUNICATION
Upon call, the following people addressed Council with unscheduled
communication: Dez Martinez, Kong Cha, Adel Rosendez, and Ruthie Cha.
4. CITY COUNCIL
5. CLOSED SESSION
During open session, City Attorney Janz announced each of the items that
would be discussed in closed session.
Council withdrew to closed session at 1:35 P.M.,an again at 3:11 P.M.
5.-A.ID 25-70
CONFERENCE WITH LABOR NEGOTIATORS - Government Code
Section 54957.6
City Negotiators: Jennifer Misner; Sumeet Malhi
Employee Organization(s): 1. International Union of Operating Engineers,
Stationary Engineers, Local 39 (Local 39); 2. Fresno City Employees
City of Fresno ***Subject to Mayoral Veto Page 18
January 9, 2025City Council Meeting Minutes
Association (FCEA); 3. Fresno Police Officers Association (FPOA Basic),
Unit 4; 4. International Association of Firefighters, Local 202, Unit 5 (Fire
Basic); 5. Amalgamated Transit Union, Local 1027 (ATU); 6. International
Brotherhood of Electrical Workers, Local 100 (IBEW); 7. Fresno Police
Officers Association (FPOA Management) Unit 10; 8. International
Association of Firefighters, Local 202, Unit 10 (Fire Management); 9. City
of Fresno Professional Employees Association (CFPEA); 10. City of
Fresno Management Employees Association (CFMEA); 11. Fresno
Airports Public Safety Officers Association (FAPSOA)
The above item was discussed in closed session. There were no open
session announcements for this item.
DISCUSSED
5.-B.ID 25-11
CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION
Government Code Section 54956.9, subdivision (d)(2)
Significant Exposure to Litigation:
Josie Rodriguez v. City of Fresno, Risk File No. RM2022043424 (Police
Department)
The above item was tabled to January 30, 2024.
TABLED
5.-C.ID 25-17
CONFERENCE WITH LEGAL COUNSEL--EXISTING LITIGATION
Government Code Section 54956.9, subdivision (d)(1):
City of Fresno v. United States Department of Interior, Bureau of
Reclamation; US Court of Federal Claims 1:16-cv-01276
The above item was discussed in closed session. There were no open
session announcements for this item.
DISCUSSED
5.-D.ID 25-24
CONFERENCE WITH LEGAL COUNSEL-EXISTING LITIGATION
Government Code Section 54956.9, subdivision (d)(1)
Emmett’s Excavation, Inc. v. City of Fresno; Case Number:
22CECG01106
The above item was discussed in closed session. There were no open
City of Fresno ***Subject to Mayoral Veto Page 19
January 9, 2025City Council Meeting Minutes
session announcements for this item.
DISCUSSED
ADJOURNMENT
The Council meeting adjourned from closed session at 3:36 P.M.
City of Fresno ***Subject to Mayoral Veto Page 20
City of Fresno
Staff Report
2600 Fresno Street
Fresno, CA 93721
www.fresno.gov
File #:ID 25-129 Agenda Date:1/30/2025 Agenda #:
2.-B.
REPORT TO THE CITY COUNCIL
FROM:ANDREW JANZ, City Attorney
City Attorney’s Office
BY:ERICA CAMARENA, Chief Assistant City Attorney
Code Enforcement Division, City Attorney’s Office
SUBJECT
Actions pertaining to the expansion of the Code Enforcement Division in the City Attorney’s Office:
***RESOLUTION - Adopt the Third Amendment to the Position Authorization Resolution (“PAR”) No.
2024-121, adding one permanent, full-time Housing Program Supervisor position in the City
Attorney’s Office, Division of Code Enforcement (Subject to Mayor’s Veto)
RECOMMENDATION
Staff recommends Council authorize the adoption of the Third Amendment to the Position
Authorization Resolution (PAR) No. 2024-121, adding one permanent, full-time Housing Program
Supervisor, in the Code Enforcement Division of the City Attorney’s Office.
EXECUTIVE SUMMARY
A new supervisor in Code Enforcement is necessary to ensure the Department is operating
appropriately and efficiently given the added programs, duties, and responsibilities assigned to Code.
This new supervisor will implement, oversee, and help administer the City of Fresno’s new Tobacco
Grant and supervise the new Tobacco Team, which will be responsible for enforcing tobacco-related
laws and ordinances pertaining to illegal tobacco retail sales and marketing. In addition, the
supervisor will resolve understaffing issues which were created by the addition of the Cannabis
Administrative Prosecutor Program (CAPP), Blackstone Corridor Project, and Commercial Vacant
Building Team. Lastly, this supervisor will also be responsible for overseeing Code Enforcement’s
Training Program for all staff to ensure the organizational goals are met.
BACKGROUND
On June 6, 2024, the Fresno City Council adopted Resolution No. 2024-106 authorizing the City
Attorney, City Manager, or designee to apply for, execute documents, and accept grant funds through
the Tobacco Grant Program. The Tobacco Grant Program is a reimbursement grant administered by
the California Department of Justice/Office of the Attorney General to distribute funds obtained by the
California Healthcare, Research and Prevention Tobacco Tax Act of 2016 (Proposition 56) to increase
tax on tobacco and provide funds to reduce illegal retail sales and marketing of cigarettes and
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R. 2025-17
File #:ID 25-129 Agenda Date:1/30/2025 Agenda #:
2.-B.
tax on tobacco and provide funds to reduce illegal retail sales and marketing of cigarettes and
tobacco products, including electronic cigarettes, to minors.
In accordance with Resolution No.2024-106,the City Attorney’s Office is created the Tobacco Team
to enforce tobacco-related laws and ordinances pertaining to illegal tobacco retail sales and
marketing and to ensure retailer compliance throughout the City.On December 12,2024,the Fresno
City Council adopted Resolution No.2024-305 adding two grant-funded inspector positions (one
Senior Community Revitalization Specialist and one Community Revitalization Specialist)for the
Tobacco Team.
With the addition of the Tobacco Team,the Code Enforcement Division of the City Attorney’s Office,
has four new specialized teams,in addition to the newly created Night Team:1)Tobacco Team;2)
CAPP Team;3)Commercial Vacant Building Team;and 4)Blackstone Corridor Project.This recent
and significant expansion in the Code Enforcement Division results in the need for one full-time
Housing Program Supervisor to lead,supervise,and oversee these four teams comprised of eight
Code Enforcement Officers.Specialized teams require extensive oversight by a supervisor,including
ensuring compliance with grant and MOU requirements,significant coordination and communication
with other departments and agencies,development of the specialty teams’processes and
procedures,and additional training of staff.Currently and due to the expansion of specialized teams,
the Code Enforcement Division is understaffed in the Housing Program Supervisor position as
existing supervisors from other teams have been allocated increased supervisory responsibilities
resulting in delays in completion of work.One additional full-time position of Housing Program
Supervisor is necessary to address this understaffing issue and to ensure all code matters are
promptly addressed and compliance is achieved in a timely manner.This new supervisor will also
provide supervisory coverage during periods of leave taken by the Night Team’s and Community
Compliance’s supervisors.
There is no requirement to meet and confer with a bargaining unit for the purpose of this PAR
amendment as this is only increasing the number of employees in an existing classification.
ENVIRONMENTAL FINDINGS
This is not a “project”for the purposes of the California Environmental Quality Act (CEQA)Guidelines
Section 15378 and is therefore exempt from the CEQA requirements.
LOCAL PREFERENCE
Local preference is not implicated because this item does not involve public contracting or bidding
with the City of Fresno.
FISCAL IMPACT
The addition of one permanent,full-time Housing Program Supervisor will not result in increased
salary and benefit expenses in Fiscal Year 2025,as there is sufficient funding within the City
Attorney’s Office budget as appropriated in the Fiscal Year 2025 Annual Appropriation Resolution.
Attachment:
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2.-B.
Third Amendment to the Position Authorization Resolution No. 2024-121
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City of Fresno
Staff Report
2600 Fresno Street
Fresno, CA 93721
www.fresno.gov
File #:ID 25-121 Agenda Date:1/30/2025 Agenda #:
2.-C.
REPORT TO THE CITY COUNCIL
January 30, 2025
FROM:ANDREW JANZ, City Attorney
Office of the City Attorney
BY:ERICA M. CAMARENA, Chief Assistant City Attorney
Office of the City Attorney, Division of Code Enforcement
SUBJECT
Approve a consultant services agreement with Leon Environmental Consulting in an amount not to
exceed $200,000, to provide professional inspection, testing, and consultant services for potentially
hazardous materials (lead-based paint and asbestos containing materials) as well as supervision of
removal of hazardous materials for demolitions of dangerous structures conducted by Code
Enforcement; and authorize the City Attorney or designee to sign the agreement on behalf of the City.
RECOMMENDATION
Staff recommends Council approve a consultant services agreement with Leon Environmental
Consulting; and authorize the City Attorney to sign the agreement on behalf of the City.
EXECUTIVE SUMMARY
The agreement referenced above will allow Code Enforcement to continue to safely perform
demolitions of dangerous buildings in accordance with all applicable federal, state, and local
government and agency requirements.
BACKGROUND
When a private property owner is unable or unwilling to do so, the Code Enforcement Division of the
City Attorney’s Office is responsible for the demolition of severely damaged structures that pose a
significant threat to health and safety as a result of dilapidation, fire, or other elements causing the
structure to be uninhabitable and dangerous.
In many cases, a fire will occur after hours, in the middle of the night, or on a weekend; and Code
Enforcement is called out to the scene to assess whether the structure is at risk of collapse. In
instances where the structural integrity of the building is compromised, qualified Code Enforcement
staff will make the decision to summarily demolish the structure. In other non-emergency demolition
cases, authority to abate by demolition is obtained through the administrative hearing process. In
both scenarios, it is necessary that the potentially hazardous materials be tested and properly
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2.-C.
both scenarios,it is necessary that the potentially hazardous materials be tested and properly
handled throughout the demolition process in accordance with applicable laws.
On February 9,2023,the City Council approved a consultant services agreement for these services.
Said agreement will terminate by expiration on February 9, 2025.
The Code Enforcement Division of the City Attorney’s Office recently engaged in the competitive
Request for Qualifications (RFQ)process.The Code Enforcement Division worked with the
Purchasing Division to solicit Statements of Qualification from professional consulting service
providers with the capability and experience necessary to provide the requisite inspection,testing,
and supervision of removal of hazardous materials.The RFQ was properly advertised in The
Business Journal and published on the City’s Planet Bids website.Eight proposals were received in
response to the RFQ.The qualifications of the respondents were evaluated and rated by a committee
of four in accordance with the provisions of the RFQ.Leon Environmental Consulting of Fresno,
California was determined to be the most qualified respondent.
A standardized consultant services agreement has been used.Upon approval by the City Council,
the consultant services agreement will be executed by the City Attorney and will be effective on
February 10, 2025.
ENVIRONMENTAL FINDINGS
By definition provided in the California Environmental Quality Act Guidelines Section 15378,the
award of this consultant services agreement does not qualify as a “project”.
LOCAL PREFERENCE
Local preference was taken into consideration and Leon Environmental Consulting is a local
business pursuant to Fresno Municipal Code 4-109(b).
FISCAL IMPACT
The General Fund is not impacted by this expenditure,as the funding for this agreement is included
in the City’s FY25 adopted budget for demolitions.
Attachment:Consultant Services Agreement with Leon Environmental Consulting
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City of Fresno
Staff Report
2600 Fresno Street
Fresno, CA 93721
www.fresno.gov
File #:ID 25-178 Agenda Date:1/30/2025 Agenda #:
2.-D.
REPORT TO THE CITY COUNCIL
FROM:ANDREW JANZ, City Attorney
City Attorney’s Office
SUBJECT
Bill - (For Introduction) Amending Section 10-2204(a) of the Fresno Municipal Code, Relating to the
Pre-Removal Notice
Attachment: Ordinance
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NEW FILE ID: 25-197
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Date Adopted:
Date Approved
Effective Date:
City Attorney Approval: ________ Ordinance No.
BILL NO.
ORDINANCE NO.
AN ORDINANCE OF THE CITY OF FRESNO, CALIFORNIA,
AMENDING SECTION 10-2204(a) OF THE FRESNO
MUNICIPAL CODE, RELATING TO THE PRE-REMOVAL
NOTICE
THE COUNCIL OF THE CITY OF FRESNO DOES ORDAIN AS FOLLOWS:
SECTION 1. Section 10-2204 of the Fresno Municipal Code is amended to read as
follows:
SECTION 10-2204. NOTICE.
(a) Pre-Removal Notice. Pre-removal notice shall be deemed
provided if a written notice is provided to the Person who is Storing or claims
ownership of the Personal Property or is posted conspicuously on or near
the Personal Property and the actual removal commences [at least] no more
than [at least] 24 hours after the pre-removal notice [has been] is posted.
The written notice shall contain the following:
(1) A general description of the Personal Property to be
removed.
(2) The location from which the Personal Property will be
removed.
(3) The date and time the notice was posted.
(4) A statement that the Personal Property has been
stored in violation of Section 10-2203.
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(5) A statement that the Personal Property may be
impounded if not removed from Public Areas within 24 hours.
(6) A statement that moving Personal Property to another
location in a Public Area shall not be considered removal of Personal
Property from a Public Area.
(7) The address where the removed Public Property will
be located, including a telephone number and the internet website of
the City through which a Person may receive information as to
impounded Personal Property as well as information as to voluntary
storage location(s).
(8) A statement that impounded Personal Property may be
discarded if not claimed within 60 days after impoundment.
SECTION 2. This ordinance shall become effective and in full force and effect at 12:01
a.m. on the thirty-first day after its final passage.
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* * * * * * * * * * * * * *
STATE OF CALIFORNIA )
COUNTY OF FRESNO ) ss.
CITY OF FRESNO )
I, TODD STERMER, City Clerk of the City of Fresno, certify that the foregoing
ordinance was adopted by the Council of the City of Fresno, at a regular meeting held on
the day of 2025.
AYES :
NOES :
ABSENT :
ABSTAIN :
Mayor Approval: , 2025
Mayor Approval/No Return: , 2025
Mayor Veto: , 2025
Council Override Vote: , 2025
TODD STERMER
City Clerk
APPROVED AS TO FORM:
ANDREW JANZ
City Attorney
By:
Angela M. Karst Date
Senior Deputy City Attorney
By:
Deputy Date
From:
Subject:FW: Public Comment, 2-D
Date:Wednesday, January 29, 2025 9:21:34 AM
Mary Quinn
Senior Deputy City Clerk
Office of the City Clerk
From: Brandi Nuse-Villegas
Sent: Wednesday, January 29, 2025 9:01 AM
To: Clerk <Clerk@fresno.gov>
Subject: Public Comment, 2-D
External Email: Use caution with links and attachments
The amendment to modify the time of notification of “at least” 24 is an improvement and I support
this amendment.
However, as it pertains to removal of belongings of those who are unhoused, the changes offer no
benefit to those who have had their belongings taken because those who are on public properties
continue to receive no notice by HART, save the potential for very rare occasions, and our
community members have reported that they do not store their belongings even when they have
asked or prove to have taken belongings to storage on the rare occasion they indicate they will store.
This is a violation of the municipal code regarding giving notice, which is being addressed, and
storage in the municipal codes.
City of Fresno
Staff Report
2600 Fresno Street
Fresno, CA 93721
www.fresno.gov
File #:ID 25-114 Agenda Date:1/30/2025 Agenda #:
2.-E.
REPORT TO THE CITY COUNCIL
FROM:JERRY P. DYER, Mayor
Office of Mayor & City Manager
BY:CHRIS MONTELONGO, Deputy Chief of Staff
Office of Mayor & City Manager
SUBJECT
Approve the appointment of Richard Burrell to the Housing Authority of the City of Fresno to a term
ending April 30, 2028. Approve the appointment of Lydia Zabrycki to the Fresno Regional Workforce
Development Board to a term ending November 1, 2025.
RECOMMENDATION
Staff recommends approval.
EXECUTIVE SUMMARY
The Housing Authority of the City of Fresno consists of fourteen commissioners. Seven
commissioners are appointed by the Mayor and seven commissioners are appointed by the Fresno
County Board of Supervisors. One commissioner is serving in an expired term. The Mayor’s Office
is providing the appointment of Richard Burrell (Resident of District 3) to a term ending April 30,
2028, for consideration.
The Fresno Regional Workforce Development Board consists of City and County members. One
private sector vacancy currently exists. The Mayor’s Office is providing the appointment of Lydia
Zabrycki (Resident of District 2) to a term ending November 1, 2025, for consideration.
Attachments:
Burrell Appointment Packet
Zabrycki Appointment Packet
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NOTIFICATION OF APPOINTMENT BY OFFICE OF THE MAYOR
TO BOARD OR COMMISSION
TO:
THROUGH:
BY:
X
Name:
Address:
Phone:
Appointed to:
Term:
City Council
Todd Stermer, City Clerk
Jerry P. Dyer, Mayor
Reappointment
New Appointment
Name of person replaced: Adrian Jones
Richard Burrell
161 North Van Ness Avenue
Fresno, CA 93701
(559) 519-3183
Through April 30, 2028
City Council 1/30/2025
NOTIFICATION OF APPOINTMENT BY OFFICE OF THE MAYOR
TO BOARD OR COMMISSION
TO:
THROUGH:
BY:
X
Name:
Address:
Phone:
Appointed to:
Term:
City Council
Todd Stermer, City Clerk
Jerry P. Dyer, Mayor
Reappointment
New Appointment
Name of person replaced: Nelly Guzman
Lydia Zabrycki
1099 East Champlain Drive
Fresno, CA 93720
(559) 289-0370
Fresno Regional Workforce Development Board
Through November 1, 2025
City Council 1//202
City of Fresno
Staff Report
2600 Fresno Street
Fresno, CA 93721
www.fresno.gov
File #:ID 25-100 Agenda Date:1/30/2025 Agenda #:2.-F.
REPORT TO THE CITY COUNCIL
FROM:NICHOLAS D. MASCIA, PE, Assistant City Manager
Interim Director - Capital Projects Department
SCOTT L. MOZIER, PE, Director
Public Works Department
BY:ISAAC CAMPOS, Project Manager
Capital Projects Department, Transportation Project Management Division
SCOTT P. SEHM, PE, Assistant Director
Capital Projects Department, Design Services Division
SUBJECT
Actions pertaining to the Cesar Chavez Boulevard (formerly California Avenue) Improvements
Projects from Fruit Avenue to Mayor Avenue (Council District 3):
1. Approve an agreement for Professional Engineering Services with Peters Engineering Group,
of Clovis, California, in the amount of $320,000 with a $32,000 contingency, for the design
and construction support services for the Cesar Chavez Complete Streets Project from Fruit
Avenue to Mayor Avenue (Council District 3) (Bid File 12500464)
2. Approve an agreement for Professional Engineering Services with Peters Engineering Group,
of Clovis, California, in the amount of $910,335 with a $91,034 contingency, for the design
and construction support services for the Cesar Chavez Boulevard Enhancements Project
from Fruit Avenue to Pottle Avenue (Council District 3) (Bid File 12500464)
RECOMMENDATION
Staff recommends the City Council approve two (2) agreements for Professional Engineering
Services with Peters Engineering Group, of Clovis, California, the first (Project One) in the amount of
$320,000 with a $32,000 contingency, for design and construction support services for the Cesar
Chavez Boulevard Complete Streets Project from Fruit Avenue to Mayor Avenue related to Public
Works project number PW01006, the second (Project Two), in the amount of $910,335 with a
$91,034 contingency, for design and construction support services for the Cesar Chavez Boulevard
Enhancements Project from Fruit Avenue to Pottle Avenue related to Public Works project number
PW01074, and authorize the Capital Projects Director or designee to sign the agreements on the
City’s behalf.
EXECUTIVE SUMMARY
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MA/AP 6-0
DISTRICT 5 (VACANT) ABSENT
APPROVED ON CONSENT
File #:ID 25-100 Agenda Date:1/30/2025 Agenda #:2.-F.
The Cesar Chavez Boulevard Improvements Projects from Fruit Avenue to Mayor Avenue will create
a complete streets corridor,providing enhanced bicycle and pedestrian amenities and related
improvements that reduce barriers to walking and bicycling along the newly renamed Cesar Chavez
Boulevard,between Fruit Avenue and Mayor Avenue.Although the construction phasing will be
determined in the design phase,Project One is expected to be constructed first and proposes to
install Class II and IV bicycle facilities,a high-intensity activated crosswalk (HAWK),redesign of the
intersection of Cesar Chavez Boulevard and Pottle Avenue,sidewalk gap infills,supplemental street
lighting,installation of new striping and signage,all of which will and promote multimodal connectivity
and enhance safety for all forms of traffic throughout the corridor.Project One includes a right-of-way
phase to acquire the land needed to construct some of the proposed improvements and is funded
through the Congestion Mitigation Air Quality (CMAQ)grant program.The total consultant contract
agreement amount for Project One is $320,000,with a $32,000 contingency,which will facilitate the
design and construction support services necessary to complete the project.
Project Two is the Cesar Chavez Boulevard Calnhancements project which will likely begin
construction after the completion of Project One and will further enhance the street,and bicycle and
pedestrian infrastructures along the newly renamed Cesar Chavez Boulevard between Fruit Avenue
and Pottle Avenue.Project Two will improve several intersections with geometric alterations that
improve visibility and safety,install an additional HAWK pedestrian signal,rehabilitate paving,and
construct a Class I trail.This project will include a right-of-way phase to accommodate many of the
proposed improvements.These enhancements will improve safety,increase accessibility,and
promote multimodal connectivity for all forms of traffic throughout the corridor.The project is fully
funded through Measure C Tier 1 funds.The total consultant contract agreement amount for Project
Two is $910,335 with a $91,034 contingency,which will facilitate the design and construction support
services necessary to complete the project.
Although Projects One and Two will both improve nearly the same segment of Cesar Chavez
Boulevard,Federal funds are being utilized by Project One so it is imperative the improvements
proposed and constructed with Project Two do not alter or conflict with those completed by Project
One,otherwise the funding would be put at risk.To ensure the project’s design and construction
phasing accommodates this funding requirement,the design phase scope of work for both projects
was solicited under one Request For Qualifications (RFQ)and the selected consultant is being
contracted with to perform the design and construction support phases of both projects,under two
separate contracts.This will eliminate potential design oversights,miscommunication,and eliminate
the likelihood for construction-phase conflicts between the two projects.The approach will also
ensure compliance with the Federal CMAQ grant requirements.These improvements align with the
City of Fresno's Active Transportation Plan (ATP) and the Southwest Fresno Specific Plan.
BACKGROUND
Project One was initiated in 2021 when the Department of Public Works prepared and submitted a
grant application for the Congestion Mitigation Air Quality (CMAQ)grant program to provide improved
pedestrian and bicycling facilities and amenities along Cesar Cavez Boulevard,within the vicinity of
Edison High School.After being awarded the grant funding,the project was programmed in the
Department’s FY23 capital budget.
The Cesar Chavez Boulevard Complete Streets Project (Project One)is located in Southwest Fresno
along the newly renamed Cesar Chavez Boulevard,with project limits of Fruit Avenue at the west end
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along the newly renamed Cesar Chavez Boulevard,with project limits of Fruit Avenue at the west end
and Mayor Avenue at the east.The purpose of this project is to transform this portion of Cesar
Chavez Boulevard into a more complete streets corridor,providing enhanced amenities and
improved options that reduce barriers for walking and bicycling.These improvements align with City
of Fresno’s Active Transportation Plan (ATP)and the Southwest Fresno Specific Plan.This project
includes the installation of approximately 1.17 miles of Class II and IV bicycle facilities along both
directions of travel on Cesar Chavez Boulevard,reconfiguration of the Cesar Chavez Boulevard and
Pottle Avenue intersection that will better control vehicular traffic,providing traffic calming amenities
and dedicated bicycle and pedestrian improvements to enhance safety,construction of a new HAWK
signal at the existing mid-block crosswalk in front of Edison High School between Tulare Street and
Kern Street,installation of street lighting where gaps exist along the corridor,sidewalk gap infills,and
new striping and signage,including green conflict-zone paint within the bike lanes where needed.
Project Two,which will make further enhancements along the corridor,will be designed concurrently
with Project One to ensure the proposed improvements do not necessitate the removal of any work
completed with the CMAQ grant-funded Project One.However,the design will take longer to
complete,and construction of Project Two is planned for a later fiscal year based upon availability of
the Measure C Regional Tier 1 funding.
Project Two is part of the Measure C Extension (2007-27)Expenditure Plan approved by the voters
of Fresno County in 2006.This particular phase was approved by the Fresno Council of
Governments (COG)and the Fresno County Transportation Authority (FCTA)as part of the Short-
Term Regional Transportation Program,and funds became available for the project in 2024.On
January 25,2024,the COG Policy Board approved the updated Regional Transportation Program
through 2027,coinciding with the expiration of the current measure,which solidified the amount of
funding available for this phase of the Cesar Chavez Boulevard regional program improvement
project.In February 2024 the City of Fresno entered into a Cooperative Project Agreement with the
FCTA.
Planned improvements related to Project Two includes the installation of a new traffic signal at the
intersection of Cesar Chavez Boulevard and Fruit Avenue,modification of the traffic signal at the
Cesar Chavez Boulevard and Thorne Avenue intersection,and intersection geometric modifications
and improvements at Cesar Chavez Boulevard and Tulare Avenue,Fresno Avenue,and Plumas
Avenue,that will realign the intersections and bring their northerly legs into the intersections at a 90-
degree angle to improve driver line of sight,shorten crosswalk distances,improve pedestrian
facilities,and enhance street lighting,all of which will provide significant improvements to safety for
the most vulnerable users of the roadway.Supplemental supportive work along the corridor includes
pavement improvements,the installation of a new HAWK pedestrian signal near Maud Avenue,and
construction of a Class 1 trail that will connect to the future Fanning Ditch trail,extending from Thorne
Avenue to Walnut Avenue.The proposed scope of improvements for Project Two will complement
those proposed with Project One and facilitate the completion of all planned improvements between
Fruit Avenue and Pottle Avenue,making this corridor a true “complete street”that will serve the
residents of the local area, as well as those travelling through this part of Fresno.
Although both projects will improve nearly the same segment of Cesar Chavez Boulevard,federal
funds are being utilized by Project One so it is imperative the improvements proposed and
constructed with Project Two do not alter or conflict with those completed by Project One,otherwise
the funding would be put at risk.To ensure the project’s design and construction phasing
accommodates this funding requirement,the design phase scope of work for both projects was
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solicited under one Request For Qualifications (RFQ)and the selected consultant is being contracted
with to perform the design and construction support phases of both projects,under two separate
contracts.This will eliminate potential design oversights,miscommunication,and eliminate the
likelihood for construction-phase conflicts between the two projects.
In accordance with Administrative Order (A.O.)6-19,staff sent out requests for Statements of
Qualifications (SOQ)on August 28,2024,via Planet Bids,email,and published in the Business
Journal.This Request For Qualifications (RFQ)was advertised for four (4)weeks,resulting in the
receipt of two Statements Of Qualifications (SOQ).During the week of October 7,2024,staff
interviewed both consultants who submitted SOQs and Peters Engineering Group was determined to
be the most qualified.Staff negotiated a fee of $320,000,with a $32,000 contingency,for the
preparation of the plans,specifications,and cost estimates,and to provide bidding and construction
support services for Project One and a fee of $910,335 with a $91,034 contingency,for the
preparation of the plans,specifications,and cost estimates,and to provide bidding and construction
support services related to Project Two.
Staff requests the City Council approve the agreement with Peters Engineering Group for $320,000,
with a $32,000 contingency,for preparation of the construction documents and to provide bidding and
construction support services for the Cesar Chavez Complete Streets from Fruit Avenue and Mayor
Avenue for Project One,approve an agreement for Professional Engineering Services with Peters
Engineering Group,of Clovis,California,in the amount of $910,335 with a $91,034 contingency,for
the design and construction support services for the Cesar Chavez Boulevard Enhancements Project
from Fruit Avenue to Pottle Avenue for Project Two,and authorize the Capital Projects Director or
designee to sign and execute the contracts on behalf of the City.
The City Attorney’s Office has reviewed and approved the consultant agreements as to form.
ENVIRONMENTAL FINDINGS
NEPA
Project One only:In accordance with the National Environmental Policy Act (NEPA)guidelines,a
Preliminary Environmental Study (PES)form was prepared in August 2024.This study resulted in a
determination of a Categorical Exclusion (CE)under 23 CFR 771.117(c),specifically activity (c)(3).
The NEPA determination was completed by Caltrans, serving as the lead agency.
CEQA
Projects One and Two:In compliance with the California Environmental Quality Act (CEQA)
guidelines,the CEQA determination will be finalized prior to the approval of the project’s final
designs.
LOCAL PREFERENCE
Local preference was not implemented for Project One because this project is federally funded,
which precludes local preference.Local Preference did not apply to Project Two as there were only
two respondents to the RFQ and the most qualified consulting firm is a local business.
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FISCAL IMPACT
The Cesar Chavez Complete Streets Project from Fruit Avenue to Mayor Avenue (Project One)is
located in Council District 3.This project will not impact the General Fund as it is fully funded by a
combination of federal CMAQ funds and Measure P Sales Tax funds.All funds necessary for the
contract award are included in the current fiscal year budget as previously adopted by the Council.
The Cesar Chavez Boulevard Enhancements project from Fruit Avenue to Pottle Avenue (Project
Two)is located in Council District 3.This project will not impact the General Fund as it is fully funded
with Measure C Tier 1 funds.All funds necessary for the contract award are included in the current
fiscal year budget as previously adopted by the Council.
Attachments:
Consultant Agreement Project One (PW01006)
Vicinity Map Project One (PW01006)
Consultant Agreement Project Two (PW01074)
Vicinity Map Project Two (PW01074)
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AGREEMENT
CITY OF FRESNO, CALIFORNIA
CONSULTANT SERVICES
THIS AGREEMENT (Agreement) is made and entered into, effective
__________________________, by and between the CITY OF FRESNO, a California
municipal corporation (City), and Peters Engineering Group, a California Corporation
(Consultant).
RECITALS
WHEREAS, the City desires to obtain professional engineering services for the
design of plans and general construction contract documents for Cesar Chavez
(formerly California Avenue) Complete Streets from Fruit Avenue to Mayor Avenue
(Project); and
WHEREAS, the Consultant is engaged in the business of furnishing services as a
Professional Engineer and hereby represents that it desires to and is professionally and
legally capable of performing the services called for by this Agreement; and
WHEREAS, the Consultant acknowledges that this Agreement is subject to the
requirements of Fresno Municipal Code Section 4-107 and Administrative Order No. 6-19;
and
WHEREAS, this Agreement will be administered for the City by its Public Works
Department Director (Director) or designee.
AGREEMENT
NOW, THEREFORE, in consideration of the foregoing and of the covenants,
conditions, and promises hereinafter contained to be kept and performed by the
respective parties, it is mutually agreed as follows:
1. Scope of Services.
The Consultant shall perform the services described herein and in Exhibit A to complete
the Project more fully described in Exhibit A, and this shall include all work incidental to,
or necessary to perform, such services even though not specifically described in Exhibit
A.The services of the Consultant shall consist of five Parts as described below. A
separate Notice to Proceed will be issued for each of the aforementioned Parts. By entry
into this Agreement and upon the City’s issuance of a written "Notice to Proceed," the
City contracts for the services in Part One. The Consultant shall not perform any other
Part of the Agreement, and this Agreement shall not be a contract for any other Part, until
further performance is authorized by the City’s issuance of a written “Notice to Proceed.”
It shall, however, remain the Consultant’s offer to perform all remaining parts described
herein. In the event the Consultant performs services without the City’s prior written
authorization, the Consultant will not be entitled to compensation for such services.
(a)Part One. Schematic Design Phase.
(1)The Consultant shall review the description of the Project set
forth in Exhibit A and consult with designated representatives of the City to
ascertain the requirements of the Project.
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(2) The Consultant shall conduct studies and investigations as
necessary to confirm requirements of design including, but not limited to, (i)
consulting with the various utility agencies, and (ii) obtaining all information and
data from the respective responsible the City department/division that is available
in the City’s records and is required by the Consultant in connection with the
consulting services including, but not limited to, maps, surveys, reports,
information, restrictions, and easements. The Consultant shall notify the City if a
topographic survey is required.
(3) The Consultant shall provide a preliminary evaluation of the
Project taking into consideration the City’s estimate of the cost of construction
(Construction Budget) of Four Million Four Hundred Eleven Thousand Three
Hundred Thirty-Nine Dollars ($4,411,339), including alternative approaches to
design and construction of the Project.
(4) Based upon the mutually agreed upon Project requirements
and any adjustments authorized by the City in the Construction Budget, the
Consultant shall design and prepare schematic design drawings and other
documents for review, modification, if required, and acceptance by the City staff
sufficient to show the concept and scope of the proposed Project and the scale
and relationship of Project components.
(5) The Consultant shall submit a preliminary estimate of
construction cost for review and acceptance by the City. As used herein,
"construction cost" means the cost of construction under the general construction
contract and does not include the Consultant’s compensation as herein provided.
Such estimate shall include, and shall separately state, the cost of any add or
deduct alternatives, the cost of any work which may be let on a segregated bid
basis and any equipment or fixtures which may be incorporated in or excluded from
the general construction contract as may be necessary to stay within the
Construction Budget.
(6) The Consultant shall make as many submittals as may be
necessary or desirable to obtain the acceptance by the City and shall assist the
City in applying for and obtaining from applicable public agencies any approval
permit, or waiver required by law, which assistance shall include, but not be limited
to, making Project information available to the City.
(7) The Consultant may not rely upon any as-builts provided by
the City but shall investigate the existing conditions and ascertain the adequacy of
such as-builts for the Consultant’s design. The Consultant shall bring to the City’s
attention any discrepancies in the as-builts that are discovered by the Consultant’.
The City makes no representations regarding any as-builts.
(8) Services shall be undertaken and completed in a sequence
assuring expeditious completion. All services shall be rendered, and deliverables
submitted within one hundred twenty (120) calendar days from the issuance of a
Notice to Proceed for this Part unless an extension of time is approved in writing
by the Director. Re-submittals, as necessary to obtain the acceptance by the City,
shall be submitted to the City within seven (7) calendar days from receipt of the
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City’s comments unless an extension of time is approved in writing by the Director.
(b) Part Two. Design Development Phase. After review and
acceptance of the schematic design phase and issuance of a written Notice to Proceed
with this Part Two:
(1) Based upon the accepted schematic design documents and
the Construction Budget, including authorized revisions thereto, the Consultant
shall prepare for review and acceptance by the City the design development
documents consisting of drawings and other documents to fix and describe the
size and character of the Project as necessary to show treatment of significant
details. In addition, the Consultant shall provide outline specifications of the work
as to kinds of materials, systems, and other such design elements as may be
required. Such design development documents and specifications shall be subject
to review and acceptance by the City.
(2) The Consultant shall submit a revised estimate of construction
cost for review and acceptance by the City. The revised estimate shall include, but
shall separately state, the cost of any add or deduct alternates, any work which
may be let on a segregated bid basis, and any furnishings, equipment or fixtures
which may be incorporated in or excluded from the general construction contract
as may be necessary to stay within the Construction Budget, including authorized
revisions thereto.
(3) In the event that the revised estimate of construction cost
exceeds the preliminary estimate of construction cost previously accepted,
excluding therefrom any add alternate, any work which may be let on a segregated
bid basis and any furnishing, equipment or fixtures which was identified in Part 1
as that which may be excluded from the general construction contract, the City
shall have the option of accepting or rejecting the revised estimate and the
Consultant shall, at no additional cost to the City, make such design changes as
may be necessary to reduce the revised estimate so that it shall not exceed the
preliminary estimate of construction cost previously accepted by the City. The City
shall not increase the scope of the Project except by modification of this Agreement
which shall include an agreed upon increase in the Consultant’s compensation.
(4) The Consultant shall make as many submittals as may be
necessary or desirable to obtain the acceptance by the City and shall assist the
City in applying for and obtaining from applicable public agencies any approval,
permit, or waiver required by law, which assistance shall include, but not be limited
to, making Project information available to the City.
(5) Services shall be undertaken and completed in a sequence
assuring expeditious completion. All services shall be rendered, and deliverables
submitted within seventy (70) calendar days from the issuance of a Notice to
Proceed for this Part unless an extension of time is approved in writing by the
Director. Re-submittals, as necessary to obtain the acceptance by the City, shall
be submitted to the City within seven (7) calendar days from receipt of the City’s
comments unless an extension of time is approved in writing by the Director.
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(c) Part Three. Construction Document Phase. After review and
acceptance of the design development phase and issuance of a written Notice to Proceed
with this Part Three:
(1) The Consultant shall prepare from the accepted design
development documents, detailed plans and specifications setting forth the
complete work to be done, and the materials, workmanship, finishes and
equipment, fixtures, and site work required. The Consultant shall also prepare
necessary bidding information, general and special conditions of the general
construction contract, technical specifications of the general construction contract,
and the bid proposal and general construction contract forms. Such documents
shall be subject to the review and acceptance by the City. The Consultant shall
cooperate with, assist and be responsive to the City’s Purchasing Manager in
preparation of all documents including, without limitation, slip-sheeting final
documents for printing when requested. The City’s Standard Specifications must
be used by the Consultant where possible. Final drawings shall be drawn, printed,
or reproduced by a process providing a permanent record in black on vellum,
tracing cloth, polyester base film, or high-quality bond copy. Bid, general
conditions, contract and bond document forms or formats regularly used by the
City shall be used by the Consultant unless the Director determines they would be
impractical for this Project. The Consultant shall be responsible for assuring that
the special conditions, technical specifications, and any other documents prepared
by the Consultant are consistent with any documents regularly used by the City
that are used for this Project.
(2) Upon request of the City, the Consultant shall provide the
calculations used to determine the general construction contract quantities; and
structural calculations for the purpose of obtaining any building permits.
(3) The Consultant shall make as many submittals as may be
necessary or desirable to obtain the acceptance by the City and shall assist the
City in applying for and obtaining from applicable public agencies any approval,
permit, report, statement, or waiver required by law, which assistance shall include,
but not be limited to, making Project information available to the City.
(4) The Consultant shall provide the City with four (4) sets of
completed plans and four (4) sets of completed specifications for review and final
acceptance by the City. Should the plans and specifications as submitted by the
Consultant not be accepted by the City, the Consultant shall revise the plans and
specifications as needed to obtain final acceptance at no additional cost to the
City.
(5) After acceptance of final corrections, if any, the Consultant
shall provide the City with one set of accepted reproducible tracings and bid
documents for the Project. In addition, the Consultant shall provide the City with
one complete set of CAD/System disk files of drawings and complete disk files of
specifications in the following format: AutoCAD 2018 and Microsoft.
(6) The Consultant shall submit a final estimate of construction
cost for review and acceptance by the City. Such estimate shall be calculated as
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of the date all general construction contract documents are delivered to the City in
final form ready for reproduction and advertising. Such estimate shall include, but
shall separately state, the cost of any add or deduct alternates, any work which
may be let on a segregated basis, and any equipment, or fixtures which may be
incorporated in or excluded from the general construction contract.
(7) In the event that the final estimate of construction cost
exceeds the revised estimate of construction cost previously accepted, excluding
therefrom any add alternate, any work which may be let on a segregated bid basis
and any furnishings, equipment or fixtures which was identified in the final revised
estimate in Part 2 as that which may be excluded from the general construction
contract, the City shall have the option of accepting or rejecting the final estimate.
If the City elects to reject the final estimate, the Consultant shall at no additional
cost to the City, make such design changes as may be necessary to reduce the
final estimate so that it shall not exceed the revised estimate of construction cost
previously accepted by the City.
(8) Services shall be undertaken and completed in a sequence
assuring expeditious completion. All services shall be rendered, and deliverables
submitted within fourty-five (45) calendar days from the issuance of a Notice to
Proceed for this Part unless an extension of time is approved in writing by the
Director. Re-submittals, as necessary to obtain the acceptance by the City, shall
be submitted to the City within seven (7) calendar days from receipt of the City’s
comments unless an extension of time is approved in writing by the Director.
(d) Part Four. Bidding Phase. After review and acceptance of the
construction document phase and if the City elects to proceed to bid, which shall
constitute a written Notice to Proceed with this Part Four:
(1) The Consultant shall assist the City in obtaining bids. The
Consultant shall not communicate with potential bidders regarding this Project
without the express prior written authorization of the City’s Purchasing Manager.
(2) The Consultant shall, within 7 calendar days of any request
by the City, expeditiously draft and promptly provide addendum as determined by
the City to be reasonable or necessary for the bidding process.
(3) If the lowest responsible bid received for the general
construction contract exceeds by 10% or more the final estimate of construction
cost previously accepted by the City, excluding therefrom any add alternate, any
work which may be let on a segregated bid basis and any furnishings, equipment
or fixtures which are excluded from the general construction contract, the
Consultant shall, within 14 calendar days of any request by the City, revise the
plans and specifications as may be necessary to stay within 10% of such final
estimate of construction cost, at no additional cost to the City provided such bid is
received within 180 calendar days after completion of services in Section 1(c) of
this Agreement. The Consultant shall also submit such revised plans and
specifications, together with a new final estimate of construction cost, to the City
for review and acceptance. This procedure, using the latest accepted final estimate
of construction cost, shall, upon written notice to the Consultant from the Director,
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be repeated until an acceptable bid is received that does not exceed the accepted
final estimate of construction cost by more than 10%.
(e) Part Five. Construction Phase and General Construction Contract
Administration. The construction phase will begin with the award of the general
construction contract, which shall constitute a written Notice to Proceed with this Part Five
and will terminate when a Notice of Completion is filed. Upon award of a general
construction contract for the Project and under the direction of the Director through the
City’s designated Construction Manager for the Project:
(1) The Consultant shall attend the pre-construction conference
and, if called upon by the City, act on the City’s behalf in discussing the various
aspects of the construction phase.
(2) The Consultant shall review and recommend in writing to the
City acceptance or non-acceptance of shop drawings, equipment and material
submittals of the general construction contractor as required by the general
construction contract and applicable laws and regulations in a timely manner. The
period for The Consultant review shall be as specified in the general construction
contract, except if such period is not so specified, the period shall be as determined
in the pre-construction conference as mutually agreed upon by the City, the
Consultant, and the general construction contractor.
(3) The Consultant shall, at intervals appropriate to the state of
construction, familiarize itself with the progress and quality of the work and
determine in general if the work is proceeding in accordance with the general
construction contract documents, and keep the City informed of the progress of
the work. In the event that the Consultant’s visit to the site results in the discovery
of any defect or deficiencies in the work of the general construction contractor, the
Consultant shall immediately advise the City and document, in writing, the work
the Consultant deems substandard, and make recommendations where
appropriate to reject any work not conforming to the intended design or
specifications. Based on the Consultant’s best knowledge, information and belief,
the Consultant shall provide the City a general written assurance that the work
covered by a payment application meets the standards in the general construction
contract. As to technical aspects, the Consultant shall provide a written judgment
of the acceptability of the work for payment applications and final acceptance,
subject to the City’s right to overrule the Consultant.
(4) Upon written request by the City, the Consultant shall render
interpretations of the general construction contract documents necessary for the
proper execution or progress of the work.
(5) Upon written request by the City, the Consultant shall render
written recommendations on change orders, claims, disputes, or other questions
arising out of the general construction contract, in a timely manner.
Recommendations by the Consultant in favor of a change order that is
consequently accepted by the City shall constitute approval by the Consultant who
shall then approve the change order in writing. The Consultant shall not
unreasonably withhold written approval in the event the City accepts a change
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order that the Consultant recommended to be rejected. In the event of any
technical disputes, the Consultant shall provide the City with the Consultant’s
written interpretation of the contract documents. The period for the Consultant
review shall be as specified in the general construction contract, except if such
period is not so specified, the period shall be as determined in the pre- construction
conference as mutually agreed upon by the City, the Consultant, and the general
construction contractor. If the City, the Consultant, and the respective general
construction contractor are unable to mutually agree on such period for the
Consultant review, then the City will make the determination and that determination
will be final.
(6) Upon written request by the City, the Consultant shall provide
such design and specification services as may be requested by the City to
implement change orders necessary for clarification or interpretation of the general
construction contract documents or which may have resulted from errors or
omissions by the Consultant.
(7) Where change orders arise as a result of an increase in the
scope of work or are due to unforeseeable conditions, the parties may modify this
Agreement, which modification shall include an agreed upon increase in the
Consultant’s compensation.
(8) Upon written request of the City, the Consultant shall assist
the City in the preparation of Progress Payment Estimates and other related
construction reports.
(9) The Consultant shall provide the City with two sets of original
as-grade plans wet-stamped and signed by the Consultant’s Engineer of Record
for the Project submitted for final approval by the City’s Building and Safety
Services Division of the Development and Resource Management Department on
all projects located outside the Right of Way.
(10) The Consultant shall prepare Record Drawings by updating
the accepted general construction documents in Part 3 to reflect all changes or
deviations that occurred during construction as reflected on or from each of the
following: (i) the general construction contractor provided red-lined plans, (ii) those
furnished by the City, (iii) the Consultant provided Request for Information
responses, and (iv) any the Consultant bulletins, amendments, or clarifications.
The Consultant shall provide the City with one set of vellum Record Drawings for
the Project within twenty-one (21) calendar days from receipt of red-lined field
markups unless an extension of time is approved in writing by the Director. Re-
submittals, as necessary to obtain the acceptance by the City, shall be submitted
to the City within fourteen (14) calendar days from receipt of the City comments
unless an extension of time is approved in writing by the Director. In addition, the
Consultant shall provide the City with one complete set of CAD/System disk files
of Record Drawings in the following format: AutoCAD 2018 and Microsoft.
2. The City’s responsibilities. The City will:
(a) `Provide, upon request and cooperation of the Consultant, access to,
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and make all provisions necessary to, enter upon public or private lands as required for
the Consultant to perform such services and inspections as are required in development
of the Project; provided, however, if the City is unable to obtain access to enter upon
public or private lands, the Consultant shall not be relieved from performing its services
as to those public and private lands that are accessible. If the Consultant notifies the City
that a topographic survey is required by the Consultant in connection with the consulting
services, then the City will be responsible for conducting the topographic survey.
(b) Manage and be responsible for all negotiations with owners in
connection with land or easement acquisition and provide all required title reports and
appraisals.
(c) With the exception of preparing correspondence required for design,
hold all required special meetings, serve all public and private notices, receive and act
upon all protests, and perform all services customarily performed by owners as are
necessary for the orderly progress of the work and the successful completion of the
Project, and pay all costs incidental thereto.
(d) Select the testing laboratory and pay the cost of borings, samplings,
and other work involved in soils testing during construction.
(e) Conduct onsite inspection during construction to check quality and
quantity of work as conditions warrant and be responsible for assuring that the general
construction contractor carries out all construction work in accordance with the plans and
specifications. However, this does not release the Consultant from its responsibility to
make periodic site visits under Section 1(e) for the purpose of observing the work to
determine its general conformity with the plans and specifications and reporting its
findings to the City.
(f) Prepare all change orders during construction in cooperation with the
Consultant.
(g) Prepare all Progress Payment Estimates in cooperation with the
Consultant following its general assurance that the work covered by a payment
application meets the standards in the general construction contract documents based
upon the Consultant’s best knowledge, information, and belief.
(h) Pay, or cause to be paid, plan check fees, conditional use permit fees
and site plan review fees.
(i) Arrange for and pay, or cause to be paid, any fees associated with
Environmental Impact Reports or Statements.
(j) Give reasonably prompt consideration to all matters submitted by the
Consultant for acceptance to the end that there will be no substantial delays in the
Consultant’s program of work. For an acceptance, approval, authorization, a request, or
any direction to the Consultant to be binding upon the City under the terms of this
Agreement, such acceptance, approval, authorization, request, or direction must be in
writing, duly authorized by the City and signed on behalf of the City by the Director.
3. Compensation.
(a) the Consultant’s sole compensation for satisfactory performance of
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all services required or rendered pursuant to this Agreement shall be a total fee of three
hundred twenty thousand dollars ($320,000), and a contingency amount not to exceed
thirty-two thousand dollars ($32,000) for any additional work rendered pursuant to
Subsection (d) below and authorized in writing by the Director. Such fees include all
expenses incurred by the Consultant in performance of such services.
(b) Detailed statements shall be rendered monthly and will be payable
in the normal course of the City business. Such statements shall be for an amount no
greater than that attributable to the Part upon which the Consultant is then engaged as
provided in Section 3(c) below.
(c) For purposes of determining the division of the total compensation to
the Consultant as provided in Section 3(a) above, or should performance of any
succeeding Part not be authorized by the City as provided in Section 1 of this Agreement,
it is agreed that the total compensation shall be allocated to the five Parts of the
Consultant’s performance as follows: Part 1 - forty-nine percent (49%), Part 2 – nineteen
percent (19%), Part 3 – twenty-eight (28%), Part 4 – one percent (1%) and Part 5 –
three percent (3%). Prior to the award of a general construction contract for the Project,
or should such contract not be awarded, the approved Parts as provided above shall be
utilized for purposes of determining the fee due to the Consultant.
(d) The parties may modify this Agreement to increase or decrease the
scope of services or provide for the rendition of services not required by this Agreement,
which modification shall include an adjustment to the Consultant’s compensation. Any
change in the scope of services must be made by written amendment to the Agreement
signed by an authorized representative for each party. The Consultant shall not be
entitled to any additional compensation if services are performed prior to a signed written
amendment. Subsequent to the date of completion of Part Three, changes due to Code
revisions or enactments adopted after such date shall constitute additional work subject
to this Section 3(d).
4. Termination, Remedies, Force Majeure, and Consolidation of Disputes.
(a) This Agreement shall terminate without any liability of the City to the
Consultant upon the earlier of: (i) the Consultant’s filing for protection under the federal
bankruptcy laws, or any bankruptcy petition or petition for receiver commenced by a third
party against the Consultant; (ii) 7 calendar days prior written notice with or without cause
by the City to the Consultant; (iii) the City’s non-appropriation of funds sufficient to meet
its obligations hereunder during any the City fiscal year of this Agreement, or insufficient
funding for the Project; or (iv) expiration of this Agreement.
(b) Immediately upon any termination or expiration of this Agreement,
the Consultant shall (i) immediately stop all work hereunder; (ii) immediately cause any
and all of its subcontractors to cease work; and (iii) return to the City any and all unearned
payments and all properties and materials in the possession of the Consultant that are
owned by the City. Subject to the terms of this Agreement, the Consultant shall be paid
compensation for services satisfactorily performed prior to the effective date of
termination. The Consultant shall not be paid for any work or services performed or costs
incurred which reasonably could have been avoided.
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(c) In the event of termination due to failure of the Consultant to
satisfactorily perform in accordance with the terms of this Agreement, the City may
withhold an amount that would otherwise be payable as an offset to, but not in excess of,
the City’s damages caused by such failure. In no event shall any payment by the City
pursuant to this Agreement constitute a waiver by the City of any breach of this Agreement
which may then exist on the part of the Consultant, nor shall such payment impair or
prejudice any remedy available to the City with respect to the breach.
(d) Upon any breach of this Agreement by the Consultant, the City may
(i) exercise any right, remedy (in contract, law, or equity), or privilege which may be
available to it under applicable laws of the State of California or any other applicable law;
(ii) proceed by appropriate court action to enforce the terms of the Agreement; and/or (iii)
recover all direct, indirect, consequential, economic, and incidental damages for the
breach of the Agreement. If it is determined that the City improperly terminated this
Agreement for default, such termination shall be deemed a termination for convenience.
(e) The Consultant shall provide the City with adequate written
assurances of future performance, upon the request of the Director or designee, in the
event the Consultant fails to comply with any terms or conditions of this Agreement.
(f) The Consultant shall be liable for default unless nonperformance is
caused by an occurrence beyond the reasonable control of the Consultant and without its
fault or negligence such as, acts of God or the public enemy, acts of the City in its
contractual capacity, fires, floods, epidemics, quarantine restrictions, strikes, unusually
severe weather, and delays of common carriers. The Consultant shall notify the Director
or designee in writing as soon as it is reasonably possible after the commencement of
any excusable delay, setting forth the full particulars in connection therewith, and shall
remedy such occurrence with all reasonable dispatch, and shall promptly give written
notice to the Director or designee of the cessation of such occurrence.
(g) the Consultant agrees that, notwithstanding any contrary provision in
this Agreement, any dispute arising from or relating to this Agreement (including, without
limitation, disputes based on contract, tort, equity, or statute) may, at the City’s option, be
joined and consolidated with any other dispute or disputes arising from or relating to the
Project so that all disputes arising from or relating to the Project may be resolved in a
single proceeding. the Consultant hereby specifically waives any objection it may
otherwise have to such joinder and consolidation and specifically consents to mediation,
arbitration or any other dispute resolution mechanism, forum or proceeding necessary to
effectuate the joinder and consolidation contemplated by this provision .
(h) Any notice of termination sent to Consultant shall include the
reason(s) for such termination or state that it is without cause.
5. Confidential Information, Ownership of Documents and Copyright License.
(a) Any reports, information, or other data prepared or assembled by the
Consultant pursuant to this Agreement shall not be made available to any individual or
organization by the Consultant without the prior written approval of the City. During the
term of this Agreement, and thereafter, the Consultant shall not, without the prior written
consent of the City, disclose to anyone any Confidential Information. The term
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Confidential Information for the purposes of this Agreement shall include all proprietary
and confidential information of the City, including but not limited to business plans,
marketing plans, financial information, designs, drawings, specifications, materials,
compilations, documents, instruments, models, source or object codes and other
information disclosed or submitted, orally, in writing, or by any other medium or media.
All Confidential Information shall be and remain confidential and proprietary in the City.
i. Permission granted to the Consultant to disclose information
on one occasion shall not authorize the Consultant to further disclose such
information or any other information or disseminate the same on any other
occasion.
ii. The Consultant shall not comment publicly to the press or any
other media regarding the Agreement or the City’s actions on the same,
except to the City’s personnel or the Consultant’s personnel involved in the
performance of this Agreement at public hearings or in response to
questions from a Legislative committee.
iii. The Consultant shall not issue any news releases or any
public relations item of any nature, whatsoever, regarding work performed
or to be performed under this Agreement without prior review of the contents
thereof by the City and receipt of the City’s written permission.
(b) Any and all original sketches, pencil tracings of working drawings,
plans, computations, specifications, computer disk files, writings and other documents
prepared or provided by the Consultant pursuant to this Agreement, in any form
whatsoever, are the property of the City at the time of preparation and shall be turned over
to the City upon expiration or termination of the Agreement or default by the Consultant.
The Consultant grants the City a copyright license to use such drawings and writings. The
Consultant shall not permit the reproduction or use thereof by any other person except as
otherwise expressly provided herein. The City may modify the design including any
drawings or writings. Any use by the City of the aforesaid sketches, tracings, plans,
computations, specifications, computer disk files, writings, and other documents in
completed form as to other projects or extensions of this Project, or in uncompleted form,
without specific written verification by the Consultant will be at the City’s sole risk and
without liability or legal exposure to the Consultant. The Consultant may keep a copy of
all drawings and specifications for its sole and exclusive use.
i. In the event of the copyright of any reports or other products
prepared under this Agreement by the Consultant or any subcontractor, the
Federal Highway Administration (FHWA) shall have the royalty-free,
nonexclusive, and irrevocable right to reproduce, publish, or otherwise use,
and to authorize others to use, the work for government purposes.
(c) If the Consultant should subcontract all or any portion of the services
to be performed under this Agreement, the Consultant shall cause each subcontractor to
also comply with the requirements of this Section 5.
(d) This Section 5 shall survive expiration or termination of this
Agreement.
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6. Professional Skill.
It is further mutually understood and agreed by and between the parties hereto that
inasmuch as the Consultant represents to the City that the Consultant and its
subcontractors, if any, are skilled in the profession and shall perform in accordance with
the standards of said profession necessary to perform the services agreed to be done by
it under this Agreement, the City relies upon the skill of the Consultant and any
subcontractors to do and perform such services in a skillful manner and the Consultant
agrees to thus perform the services and require the same of any subcontractors.
Therefore, any acceptance of such services by the City shall not operate as a release of
the Consultant or any subcontractors from said professional standards.
7. Indemnification.
To the furthest extent allowed by law, including California Civil Code section 2782.8, the
Consultant shall indemnify, hold harmless and defend the City and each of its officers,
officials, employees, agents, and volunteers from any and all loss, liability, fines,
penalties, forfeitures, costs and damages (whether in contract, tort or strict liability,
including but not limited to personal injury, death at any time and property damage), and
from any and all claims, demands and actions in law or equity (incl uding reasonable
attorney's fees, litigation expenses and cost to enforce this agreement) that arise out of,
pertain to, or relate to the negligence, recklessness or willful misconduct of the
Consultant, its principals, officers, employees, agents, or volunteers in the performance
of this Agreement.
If the Consultant should subcontract all or any portion of the services to be performed
under this Agreement, the Consultant shall require each subcontractor to indemnify, hold
harmless and defend the City and each of its officers, officials, employees, agents, and
volunteers in accordance with the terms of the preceding paragraph.
This section shall survive termination or expiration of this Agreement.
8. Insurance.
(a) Throughout the life of this Agreement, the Consultant shall pay for
and maintain in full force and effect all insurance as required in Exhibit B, which is
incorporated into and part of this Agreement, with an insurance company(ies) either (i)
admitted by the California Insurance Commissioner to do business in the State of
California and rated no less than “A-VII” in the Best’s Insurance Rating Guide, or (ii) as
may be authorized in writing by the City’s Risk Manager or designee at any time and in
its sole discretion. The required policies of insurance as stated in Exhibit B shall maintain
limits of liability of not less than those amounts stated therein. However, the insurance
limits available to the City, its officers, officials, employees, agents, and volunteers as
additional insureds, shall be the greater of the minimum limits specified therein or the full
limit of any insurance proceeds to the named insured.
(b) If at any time during the life of the Agreement or any extension, the
Consultant or any of its subcontractors/sub-consultants fail to maintain any required
insurance in full force and effect, all services and work under this Agreement shall be
discontinued immediately, and all payments due or that become due to the Consultant
shall be withheld until notice is received by the City that the required insurance has been
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restored to full force and effect and that the premiums therefore have been paid for a
period satisfactory to the City. Any failure to maintain the required insurance shall be
sufficient cause for the City to terminate this Agreement. No action taken by the City
pursuant to this section shall in any way relieve the Consultant of its responsibilities under
this Agreement. The phrase “fail to maintain any required insurance” shall include, without
limitation, notification received by the City that an insurer has commenced proceedings,
or has had proceedings commenced against it, indicating that the insurer is insolvent.
(c) The fact that insurance is obtained by the Consultant shall not be
deemed to release or diminish the liability of the Consultant, including, without limitation,
liability under the indemnity provisions of this Agreement. The duty to indemnify the City
shall apply to all claims and liability regardless of whether any insurance policies are
applicable. The policy limits do not act as a limitation upon the amount of indemnification
to be provided by the Consultant. Approval or purchase of any insurance contracts or
policies shall in no way relieve from liability nor limit the liability of the Consultant, its
principals, officers, agents, employees, persons under the supervision of the Consultant,
vendors, suppliers, invitees, consultants, sub-consultants, subcontractors, or anyone
employed directly or indirectly by any of them.
(d) If the Consultant should subcontract all or any portion of the services
to be performed under this Agreement, the Consultant shall require each
subcontractor/sub-consultant to provide insurance protection, as an additional insured, to
the City and each of its officers, officials, employees, agents, and volunteers in
accordance with the terms of this section, except that any required certificates and
applicable endorsements shall be on file with the Consultant and the City prior to the
commencement of any services by the subcontractor. the Consultant and any
subcontractor/sub-consultant shall establish additional insured status for the City, its
officers, officials, employees, agents, and volunteers by using Insurance Service Office
(ISO) Form CG 20 10 11 85 or both CG 20 10 04 13 and CG 20 37 04 13 or by an
executed manuscript company endorsement providing additional insured status as broad
as that contained in ISO Form CG 20 10 11 85.
9. Conflict of Interest and Non-Solicitation.
(a) Prior to the City’s execution of this Agreement, the Consultant shall
complete a City of Fresno conflict of interest disclosure statement in the form as set forth
in Exhibit C. During the term of this Agreement, the Consultant shall have the obligation
and duty to immediately notify the City in writing of any change to the information provided
by the Consultant in such statement.
(b) the Consultant shall comply, and require its subcontractors to
comply, with all applicable (i) professional canons and requirements governing avoidance
of impermissible client conflicts; and (ii) federal, state, and local conflict of interest laws
and regulations including, without limitation, 23 U.S.C. § 112, FHWA regulations
applicable to design and engineering consulting contracts found at 23 C.F.R. 172.1 et
seq., California Government Code Section 1090 et. seq., the California Political Reform
Act (California Government Code Section 87100 et. seq.), the regulations of the Fair
Political Practices Commission concerning disclosure and disqualification (2 California
Code of Regulations Section 18700 et. seq.) and Section 4 -112 of the Fresno Municipal
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Code (Ineligibility to Compete). At any time, upon written request of the City, the
Consultant shall provide a written opinion of its legal counsel and that of any subcontractor
that, after a due diligent inquiry, the Consultant and the respective subcontractor(s) are
in full compliance with all laws and regulations. The Consultant shall take, and require its
subcontractors to take, reasonable steps to avoid any appearance of a conflict of interest.
Upon discovery of any facts giving rise to the appearance of a conflict of interest, the
Consultant shall immediately notify the City of these facts in writing.
(c) In performing the work or services to be provided hereunder, the
Consultant shall not employ or retain the services of any person while such person either
is employed by the City or is a member of any City council, commission, board,
committee, or similar City body. This requirement may be waived in writing by the City
Manager, if no actual or potential conflict is involved.
(d) The Consultant represents and warrants that it has not paid or
agreed to pay any compensation, lawful or unlawful, contingent, or otherwise, direct, or
indirect, to any party to solicit or procure this Agreement or any rights/benefits hereunder.
The City shall have the right, in its discretion, to deduct from any payment to the
Consultant under this Agreement, or otherwise recover the full amount of, any rebate,
kickback or other consideration paid by the Consultant in violation of any representation
or warranty under this section.
(e) Neither the Consultant, nor any firm affiliated with the Consultant, nor
any of the Consultant’s subcontractors performing any services on this Project, shall bid
for, assist anyone in the preparation of a bid for, or perform any services pursuant to, any
other contract in connection with this Project with the exception of any subcontractor
whose services are limited to providing surveying or materials testing information. the
Consultant and any of its subcontractors shall have no interest, direct or indirect, in any
other contract with a third party in connection with this Project unless such interest is in
accordance with all applicable law and fully disclosed to and approved by the City
Manager, in advance and in writing. An affiliated firm is one which is subject to the control
of the same person(s) through joint-ownership or otherwise.
(f) The Consultant shall disclose any financial, business, or other
relationship with the City that may have an impact upon the outcome of this Agreement
or any ensuing the City construction project. The Consultant shall also disclose any
current clients who may have a financial interest in the outcome of this Agreement or any
ensuing the City construction project, which will follow.
(g) The Consultant hereby certifies that it does not now have, nor shall
it acquire any financial or business interest that would conflict with the performance of
services under this Agreement.
(h) If the Consultant should subcontract all or any portion of the work to
be performed or services to be provided under this Agreement, the Consultant shall
include the provisions of this Section 9 in each subcontract and require its subcontractors
to comply therewith.
(i) This Section 9 shall survive expiration or termination of this
Agreement.
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10. Recycling Program.
In the event the Consultant maintains an office or operates a facility(ies), or is required
herein to maintain or operate same, within the incorporated limits of the City of Fresno,
the Consultant at its sole cost and expense shall:
(a) Immediately establish and maintain a viable and ongoing recycling
program, approved by the City’s Solid Waste Management Division, for each office and
facility. Literature describing the City recycling programs is available from the City’s Solid
Waste Management Division and by calling City of Fresno Recycling Hotline at (559) 621-
1111.
(b) Immediately contact the City’s Solid Waste Management Division at
(559) 621-1452 and schedule a free waste audit and cooperate with such Division in their
conduct of the audit for each office and facility.
(c) Cooperate with and demonstrate to the satisfaction of the City’s Solid
Waste Management Division the establishment of the recycling program in paragraph
(a) above and the ongoing maintenance thereof.
11. General Terms, Federal and State Assurances and Requirements.
(a) Except as otherwise provided by law, all notices expressly required
of the City within the body of this Agreement, and not otherwise specifically provided for,
shall be effective only if signed by the Director or designee.
(b) Records of the Consultant’s expenses pertaining to the Project shall
be kept on a generally recognized accounting basis. The Consultant and its
subcontractors shall maintain all books, documents, papers, accounting records, and
other evidence pertaining to the performance of the Agreement including, but not limited
to, the costs of administering the Agreement. The Consultant and its subcontractors shall
make such materials available at their respective offices at all reasonable times during
the period of this Agreement and for 3 years, or longer if required by law, from the date
of final payment under the Agreement. the City, the State, the State Auditor, FHWA or
any duly authorized representative of the federal government shall have access to any
books, records, papers, accounting records and other documents of the Consultant and
its subcontractors that are pertinent to the Agreement for audit, examinations, excerpts,
and transcriptions. Copies thereof shall be furnished by the Consultant, if requested. If
any litigation, claim, negotiations, audit, or other action is commenced before the
expiration of the 3-year time period, all records shall be retained and made available until
such action is resolved, or until the end of said time period whichever shall later occur. If
the Consultant should subcontract all or any portion of the services to be performed under
this Agreement, the Consultant shall cause each subcontractor to also comply with the
requirements of this section and in the event a subcontract is entered into for an amount
in excess of $25,000 the subcontract shall include this paragraph in its entirety. This
Section 11(b) shall survive expiration or termination of this Agreement.
(c) Prior to execution of this Agreement by the City, the Consultant shall
have provided evidence to the City that the Consultant is licensed to perform the services
called for by this Agreement (or that no license is required). If the Consultant should
subcontract all or any portion of the work or services to be performed under this
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Agreement, the Consultant shall require each subcontractor to provide evidence to the
City that subcontractor is licensed to perform the services called for by this Agreement
(or that no license is required) before beginning work.
(d) The Consultant’s services pursuant to this Agreement shall be
provided under the supervision of Will Washburn, PE, and he/she shall not assign another
to supervise the Consultant’s performance of this Agreement without the prior written
approval of the Director.
(e) The City will carry out applicable federal requirements in the
administration of this Agreement. Notwithstanding Section 25 herein, the Consultant
agrees to comply with all applicable federal and state assurances and requirements
identified in Exhibit D along with its Appendix A and require that each subcontract include
the same assurances by each of its subcontractors.
12. Nondiscrimination.
To the extent required by controlling federal, state, and local law, the Consultant shall not
employ discriminatory practices in the provision of services, employment of personnel, or
in any other respect on the basis of race, religious creed, color, national origin, ancestry,
physical disability, mental disability, medical condition, marital status, sex, age, sexual
orientation, ethnicity, status as a disabled veteran or veteran of the Vietnam era. Subject
to the foregoing and during the performance of this Agreement, the Consultant agrees as
follows:
(a) the Consultant will comply with all applicable laws and regulations
providing that no person shall, on the grounds of race, religious creed, color, national
origin, ancestry, physical disability, mental disability, medical condition, marital status,
sex, age, sexual orientation, ethnicity, status as a disabled veteran or veteran of the
Vietnam era be excluded from participation in, be denied the benefits of, or be subject to
discrimination under any program or activity made possible by or resulting from this
Agreement.
(b) The Consultant will not discriminate against any employee or
applicant for employment because of race, religious creed, color, national origin, ancestry,
physical disability, mental disability, medical condition, marital status, sex, age, sexual
orientation, and ethnicity, status as a disabled veteran or veteran of the Vietnam era. The
Consultant shall ensure that applicants are employed, and the employees are treated
during employment, without regard to their race, religious creed, color, national origin,
ancestry, physical disability, mental disability, medical condition, marital status, sex, ag e,
sexual orientation, and ethnicity, status as a disabled veteran or veteran of the Vietnam
era. Such requirement shall apply to the Consultant’s employment practices including,
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 Consultant
agrees to post in conspicuous places, available to employees and applicants for
employment, notices setting forth the provision of this nondiscrimination clause.
(c) the Consultant will, in all solicitations or advertisements for
employees placed by or on behalf of the Consultant in pursuit hereof, state that all
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qualified applicants will receive consideration for employment without regard to race,
religious creed, color, national origin, ancestry, physical disability, mental disability,
medical condition, marital status, sex, age, sexual orientation, ethnicity, st atus as a
disabled veteran or veteran of the Vietnam era.
(d) The Consultant will send to each labor union or representative of
workers with which it has a collective bargaining agreement or other contract or
understanding, a notice advising such labor union or workers' representatives of the
Consultant’s commitment under this section and shall post copies of the notice in
conspicuous places available to employees and applicants for employment.
(e) If the Consultant should subcontract all or any portion of the services
to be performed under this Agreement, the Consultant shall cause each subcontractor to
also comply with the requirements of this Section 12.
13. Independent Contractor.
(a) In the furnishing of the services provided for herein, the Consultant
is acting solely as an independent contractor. Neither the Consultant, nor any of its
officers, agents or employees shall be deemed an officer, agent, employee, joint venturer,
partner or associate of the City for any purpose. The City shall have no right to control or
supervise or direct the manner or method by which the Consultant shall perform its work
and functions. However, the City shall retain the right to administer this Agreement so as
to verify that the Consultant is performing its obligations in accordance with the terms and
conditions thereof.
(b) This Agreement does not evidence a partnership or joint venture
between the Consultant and the City. The Consultant shall have no authority to bind the
City absent the City’s express written consent. Except to the extent otherwise provided in
this Agreement, the Consultant shall bear its own costs and expenses in pursuit thereof.
(c) Because of its status as an independent contractor, the Consultant
and its officers, agents, and employees shall have absolutely no right to employment
rights and benefits available to the City employees. The Consultant shall be solely liable
and responsible for all payroll and tax withholding and for providing to, or on behalf of, its
employees all employee benefits including, without limitation, health, welfare, and
retirement benefits. In addition, together with its other obligations under this Agreement,
the Consultant shall be solely responsible, indemnify, defend and save the City harmless
from all matters relating to employment and tax withholding for and payment of the
Consultant’s employees, including, without limitation, (i) compliance with Social Security
and unemployment insurance withholding, payment of workers’ compensation benefits,
and all other laws and regulations governing matters of employee withholding, taxes and
payment; and (ii) any claim of right or interest in the City employment benefits,
entitlements, programs and/or funds offered employees of the City whether arising by
reason of any common law, de facto, leased, or co-employee rights or other theory. It is
acknowledged that during the term of this Agreement, the Consultant may be providing
services to others unrelated to the City or to this Agreement.
14. Notices.
Any notice required or intended to be given to either party under the terms of this
DPW-S FHWA Eng. CSA, Long Form Total Fee – Contingency (09-2023)
Page 18 of 36
Agreement shall be in writing and shall be deemed to be duly given if delivered personally,
transmitted by facsimile followed by telephone confirmation of receipt, or sent by United
States registered or certified mail, with postage prepaid, return receipt requested,
addressed to the party to which notice is to be given at the party's address set forth on
the signature page of this Agreement or at such other address as the parties may from
time to time designate by written notice. Notices served by United States mail in the
manner above described shall be deemed sufficiently served or given at the time of the
mailing thereof.
15. Binding.
Subject to Section 16 below, once this Agreement is signed by all parties, it shall be
binding upon, and shall inure to the benefit of, all parties, and each parties' respective
heirs, successors, assigns, transferees, agents, servants, employees, and
representatives.
16. Assignment.
(a) This Agreement is personal to the Consultant and there shall be no
assignment by the Consultant of its rights or obligations under this Agreement without the
prior written approval of the City Manager or designee. Any attempted assignment by the
Consultant, its successors, or assigns, shall be null and void unless approved in writing
by the City Manager or designee.
(b) The Consultant hereby agrees not to assign the payment of any
monies due the Consultant from the City under the terms of this Agreement to any other
individual(s), corporation(s) or entity(ies). The City retains the right to pay any and all
monies due the Consultant directly to the Consultant.
17. Compliance With Law.
In providing the services required under this Agreement, the Consultant shall at all times
comply with all applicable laws of the United States, the State of California and the City,
and with all applicable regulations promulgated by federal, state, regional, or local
administrative and regulatory agencies, now in force and as they may be enacted, issued,
or amended during the term of this Agreement.
18. Waiver.
The waiver by either party of a breach by the other of any provision of this Agreement
shall not constitute a continuing waiver or a waiver of any subsequent breach of either
the same or a different provision of this Agreement. No provisions of this Agreement may
be waived unless in writing and signed by all parties to this Agreement. Waiver of any
one provision herein shall not be deemed to be a waiver of any other provision herein.
19. Governing Law and Venue.
This Agreement shall be governed by, and construed and enforced in accordance with,
the laws of the State of California, excluding, however, any conflict of laws rule which
would apply the law of another jurisdiction. Venue for purposes of the filing of any action
regarding the enforcement or interpretation of this Agreement and any rights and duties
hereunder shall be Fresno County, California.
DPW-S FHWA Eng. CSA, Long Form Total Fee – Contingency (09-2023)
Page 19 of 36
20. Headings.
The section headings in this Agreement are for convenience and reference only and shall
not be construed or held in any way to explain, modify, or add to the interpretation or
meaning of the provisions of this Agreement.
21. Severability.
The provisions of this Agreement are severable. The invalidity, or unenforceability of any
one provision in this Agreement shall not affect the other provisions.
Interpretation. The parties acknowledge that this Agreement in its final form is the result
of the combined efforts of the parties and that, should any provision of this Agreement be
found to be ambiguous in any way, such ambiguity shall not be resolved by construing
this Agreement in favor of or against either party, but rather by construing the terms in
accordance with their generally accepted meaning.
22. Attorney's Fees.
If either party is required to commence any proceeding or legal action to enforce or
interpret any term, covenant or condition of this Agreement, the prevailing party in such
proceeding or action shall be entitled to recover from the other party its reasonable
attorney's fees and legal expenses.
23. Exhibits.
Each exhibit and attachment referenced in this Agreement is, by the reference,
incorporated into and made a part of this Agreement.
24. Precedence of Documents.
In the event of any conflict between the body of this Agreement and any Exhibit or
Attachment hereto, the terms and conditions of the body of this Agreement shall control
and take precedence over the terms and conditions expressed within the Exhibit or
Attachment. Furthermore, any terms or conditions contained within any Exhibit or
Attachment hereto which purport to modify the allocation of risk between the parties,
provided for within the body of this Agreement, shall be null and void.
25. Cumulative Remedies.
No remedy or election hereunder shall be deemed exclusive but shall, wherever possible,
be cumulative with all other remedies at law or in equity.
26. No Third-Party Beneficiaries.
The rights, interests, duties, and obligations defined within this Agreement are intended
for the specific parties hereto as identified in the preamble of this Agreement.
Notwithstanding anything stated to the contrary in this Agreement, it is not intended that
any rights or interests in this Agreement benefit or flow to the interest of any third parties.
27. Extent of Agreement.
Each party acknowledges that they have read and fully understand the contents of this
Agreement. This Agreement represents the entire and integrated agreement between
the parties with respect to the subject matter hereof and supersedes all prior negotiations,
representations, or agreements, either written or oral. This Agreement may be modified
DPW-S FHWA Eng. CSA, Long Form Total Fee – Contingency (09-2023)
Page 20 of 36
only by written instrument duly authorized and executed by both the City and the
Consultant.
28. RFQ Document.
Any Request for Qualifications and documents issued therewith (collectively referred to
herein as “RFQ”) by the City that resulted in selection of the Consultant for entry into this
Agreement are hereby incorporated into and made a part of this Agreement. In the event
of a conflict between the RFQ and this Agreement (including any Exhibit hereto), this
Agreement (including any Exhibit hereto) shall take precedence.
29. The City Manager, or designee, is hereby authorized and directed to
execute and implement this Agreement. The previous sentence is not intended to
delegate any authority to the City Manager to administer the Agreement, any delegation
of authority must be expressly included in the Agreement.
[SIGNATURES FOLLOW ON THE NEXT PAGE.]
IN WITNESS WHEREOF, the parties have executed this Agreement at Fresno, California, on the day and year first above written.
CITY OF FRESNO, A California municipal corporation
By:-------------Nicholas Mascia, PE, Interim Director Capital Projects Department
ATTEST: TODD STERMER, CMC City Clerk
By: ------------
Deputy
No signature of City Attorney required. Standard Document #DPW-S FHWA Eng.
CSA, Long Form Total Fee -Contingency
(11-2022) has been used without modification, as ce �ified by the undersigned.
By: ,,-fr(� Isaac Camps Project Manager Capital Projects Department
REVIEWED BY:
Jon B artel,��rator Capital Projects Department
Addresses: CITY: City of Fresno Attention: Isaac Campos, Project Manager 747 R Street, 2nd Florr Fresno, CA 93721 Phone: (559) 621-8657 E-mail: lsaac.campos@fresno.gov
Attachments: 1.Exhibit A -Scope of Services
Peters Engineering Group, A Calif
Name: David Peters --�---------
Title: President (If corporation or LLC., Board Chair,
By: -Pr--id'+-'. o-" Ar V'-"'-nic ·_e .. P+"'i'--'I�,.....�......__,._ ___ _�
Name: ___ S_he_ry..._I P_e_t_er_s ____ _
Title: Secretary (If corporation or LLC., CFO, Treasurer, Secretary or Assistant Secretary)
Any Applicable Professional License: Number: C52685 --'--.;__ ________ _Name: David Peters Date of Issuance: 1994 --------
CONSUL TANT: Peters Engineering Group Attention: Will Washburn, Project Manager 862 Pollasky Ave Clovis, CA 93612 Phone: (559) 299-1544 ext. 114 E-mail: WWashburn@peters-engineering.com
DPW-S FHWA Eng. CSA, Long Form Total Fee -Contingency (09-2023) Page 21 of 36
DPW-S FHWA Eng. CSA, Long Form Total Fee – Contingency (09-2023)
Page 22 of 36
2.Exhibit B - Insurance Requirements
3.Exhibit C - Conflict of Interest Disclosure Form
4.Exhibit D - Federal and State Assurances
5.Appendix A to Exhibit D
DPW-S FHWA Eng. CSA, Long Form Total Fee – Contingency (09-2023)
Exhibit A
Page 23 of 36
EXHIBIT A
SCOPE OF SERVICES
Consultant Service Agreement between City of Fresno
(City) and Peters Engineering Group (Consultant)
Cesar Chavez (formerly California Avenue) Complete Streets
from Fruit Avenue to Mayor Avenue
Peters Engineering Group (CONSULTANT) will provide the City of Fresno (CITY) with
engineering services for the subject project as described herein. CONSULTANT’s
services will result in the preparation of plans, specifications, and estimate (PS&E) for the
California (Cesar Chavez) Complete Streets Project from Fruit Avenue to Mayor
Avenue/Tupman Street. Bidding and Construction Engineering Services will also be
provided for the project. The project will include the following design aspects:
•CONSULTANT will prepare an Intersection Control Evaluation (ICE) Report to determine
the proposed improvement at the MLK Jr./Pottle/California intersection. The intersection
is currently signalized. Project grant scope proposes intersection improvements to provide
for bike and pedestrian improvements as well as improve vehicle movement through the
intersection. Possible outcomes identified in the ICE would include bike and pedestrian
concrete improvements and traffic signal upgrades or a roundabout.
•Design of a High Intensity Activated Crosswalk (HAWK) pedestrian signal in front of
Edison High School between Kern Street and Tulare Street at the existing mid-block
crosswalk. Coordination with PG&E will be necessary to provide electrical service for t he
new signal improvement.
•Design curb, gutter, a 12’-wide sidewalk, and ADA ramps on the north side of California
(Cesar Chavez) from Kern Street to Waterman Avenue. Pavement widening will be
required in this area to construct improvements at the ultimate width. Coordination wit h
Fresno Metropolitan Flood Control District (FMFCD) will be required to determine master
plan top-of-curb grades and flow direction in this area.
•Design curb, gutter, a 12’-wide sidewalk, and ADA ramps on the south side of California
(Cesar Chavez) from Fruit Avenue to Thorne Avenue. Pavement widening will be required
in this area to construct improvements at the ultimate width. Coordination with FMFCD will
be required to determine master plan top-of-curb grades and flow direction in this area.
Coordination with PG&E will be necessary to relocate an existing overhead power pole in
the Arthur Avenue alignment.
•ADA ramp designs will minimize potential ROW acquisition. Ramps will conform to CITY
Standards for slopes and horizontal dimensions.
•Prepare Street Light design for proposed streetlights. Coordination with PG&E will be
necessary to provide service.
•CONSULTANT will prepare cover sheet, legal descriptions and exhibits for Right-Of- Way
(ROW) acquisition and deliver files to the CITY for use in acquiring ROW. CONSULTANT
anticipates 5 (five) properties are anticipated to provide ROW with this project.
DPW-S FHWA Eng. CSA, Long Form Total Fee – Contingency (09-2023)
Exhibit A
Page 24 of 36
•Utility Coordination for all affected existing dry and wet utilities. A pothole exhibit will be
prepared by the CONSULTANT based on utility research. The exhibit will identify existing
utilities in horizontal locations only. CITY will use the exhibit to pothole the project site and
provide information to the CONSULTANT to resolve potential design conflicts.
•Prepare striping and signage plans in accordance with CITY and Caltrans standards and
latest version of CA MUTCD. Design of Class IV Bicycle Lanes and Class II buffered bike
lanes in both the eastbound and the westbound direction will be part of the project . Actual
construction of those facilities may occur in the accompanying Measure C California
Enhancements project. All striping within the project area will be removed and replaced
with the project.
•Prepare Geometric Approval Drawing (GAD) for review prior to submittal of the 30% plans.
•All topographic survey information, including current right of way and boundary of parcels,
will be provided by the CITY.
•A tracking spreadsheet for review comments will be prepared by CONSULTANT to
maintain status of comments and will be shared with CITY with each submittal.
The plan set is anticipated to consist of the following sheets: Cover Sheet, Legend and General
notes, Cross Section Views, Intersection Plan View Sheets, Roadway Plan and Profile sheets for
the pavement widening and curb and gutter, Curb Ramp Detail Sheets, Pavement Delineation
and Signage Sheets, Construction Details, plans for roundabout or traffic signal modifications at
California (Cesar Chavez) and MLK Jr. and HAWK Signal Plans and HAWK Signal Detail Sheets.
Consultant anticipates approximately 60 sheets for this plan set.
A geotechnical investigation to obtain samples of subgrade soils for laboratory testing will be
performed. At least 10 (ten) locations within the project area will be cored for existing pavement
and subgrade thickness. At least 5 (seven) R-values will be acquired to assist in determining
proposed pavement section and thickness. Traffic control and coordination are included. The
geotechnical investigation will result in recommendations for new pavement areas and proposed
pavement rehabilitation, as necessary.
Notice will be given to the CONSULTANT if the CITY observes or otherwise becomes aware of
any development that affects the above design criteria.
WORK TASKS
The CONSULTANT will provide the following work tasks:
Part 1 Schematic Design Phase: Project Kick-off/Field Review and 30% Plans
CONSULTANT shall meet with CITY project manager at the Capital Projects Department offices
prior to commencement of design. Important details to be discussed would include delivery of
the completed topographic and boundary survey AutoCAD files and limits of proposed
improvements. CONSULTANT will perform a field review to visually examine the project area and
to observe items shown in the topographic survey provided by the CITY.
CONSULTANT will prepare an ICE Report for review by CITY for the intersection of California
(Cesar Chavez) and MLK Jr./Pottle Avenue. CONSULTANT will prepare conceptual geometrics,
DPW-S FHWA Eng. CSA, Long Form Total Fee – Contingency (09-2023)
Exhibit A
Page 25 of 36
preliminary opinions of probable construction costs, and operational analyses for both opening
day and the 20-year conditions. CONSULTANT will utilize Sidra and Synchro software to perform
the analysis. The preliminary conceptual geometry for the roundabout option will utilize the
National Cooperative Highway Research Program (NCHRP) Research Report 1043: Guide for
Roundabouts as well as Consultant’s recent experience designing roundabouts in the CITY. The
traffic signal layout will be based on the most recent City of Fresno standards, the California
Manual on Uniform Traffic Control Devices (CMUTCD), and Consultant’s experience designing
traffic signals for the CITY. CITY will provide comments for CONSULTANT to review and address.
CITY to determine preferred geometry for the intersection.
CONSULTANT will prepare 30% plans for review by CITY. Plans will include limits of road
reconstruction, typical cross sections, signals, and striping and signage on plans for the CITY. A
digital copy of the plans for the GAD and 30% submittal will be delivered to CITY for review. Plans
will be circulated by CITY to all responsible reviewing departments and agencies. CITY will
provide comments for CONSULTANT to review and address.
Part 2 Design Development Phase
CONSULTANT will prepare 60% plans, specifications and estimate for review by CITY and other
outside agencies as determined by the CITY. 60% plans will include cover sheet, typical detail
sheet, plan sheets, signals, and striping and signage sheets. Specifications shall consist of bid
item descriptions. A digital copy of the plans for the 60% PS&E will be delivered to CITY for
review. Hard copies of the plans can be provided upon request. Plans will be circulated by CITY
to all responsible reviewing departments and agencies. CITY will provide comments and direction
for CONSULTANT.
Part 3 Construction Document Phase
CONSULTANT will review CITY’s compiled review comments for the 60% plans. Based on
collaboration between CITY and CONSULTANT on review comments, CONSULTANT shall
prepare 90% plans, specifications, and estimate for review by CITY and other outside agencies
as determined by CITY. A digital copy of the plans for the 90% PS&E will be delivered to CITY
for review. Hard copies of the plans can be provided upon request. Plans will be circulated by
CITY to all responsible reviewing departments and agencies. CITY will provide comments and
direction for CONSULTANT.
CONSULTANT will review CITY’s compiled review comments for the 90% plans. Based on
collaboration between CITY and CONSULTANT on review comments, CONSULTANT shall
prepare 100% plans, specifications, and estimate for final review by CITY and other outside
agencies as determined by CITY. A digital copy of the plans for the 100% PS&E will be delivered
to CITY for review. Plans will be circulated by CITY to all responsible reviewing departments and
agencies. CITY will any provide comments to review and address for CONSULTANT.
CONSULTANT will deliver signed mylar copies of the plans for approval to the CITY and other
outside agencies as determined by CITY. CONSULTANT will prepare cover sheet, legal
descriptions and exhibits for areas identified for ROW acquisition.
Part 4 Bidding Phase
CONSULTANT will assist CITY during Bidding. CONSULTANT shall attend the pre-bid meeting.
At request of CITY, CONSULTANT shall review contractor submitted requests for information
(RFIs) and shall submit answers to CITY. CONSULTANT shall assist CITY in pr eparation of
DPW-S FHWA Eng. CSA, Long Form Total Fee – Contingency (09-2023)
Exhibit A
Page 26 of 36
information to be included in bid addendums.
Part 5 Construction Phase and General Construction Contract Administration
CONSULTANT will assist CITY during Construction. CONSULTANT shall attend the pre-
construction meeting. At the request of CITY, CONSULTANT shall review non-routine contractor
submittals and non-routine contractor requests for information during the project that requires
specialized review by design staff. CONSULTANT shall make up to two (2) 1-hour site visits
during construction. Prepare As-Built plans based on information obtained from contractor and
CITY to reflect routine field changes that occurred during construction.
DPW-S FHWA Eng. CSA, Long Form Total Fee – Contingency (09-2023)
Exhibit B
Page 27 of 36
EXHIBIT B
INSURANCE REQUIREMENTS
Consultant Service Agreement between City of Fresno
(City) and Peters Engineering Group (Consultant)
Cesar Chavez (formerly California Avenue) Complete Streets
from Fruit Avenue to Mayor Avenue
MINIMUM SCOPE OF INSURANCE
Coverage shall be at least as broad as:
1.The most current version of Insurance Services Office (ISO) Commercial
General Liability Coverage Form CG 00 01, providing liability coverage
arising out of your business operations. The Commercial General
Liability policy shall be written on an occurrence form and shall provide
coverage for “bodily injury,” “property damage” and “personal and
advertising injury” with coverage for premises and operations (including
the use of owned and non-owned equipment), products and completed
operations, and contractual liability (including, without limitation,
indemnity obligations under the Agreement) with limits of liability not less
than those set forth under “Minimum Limits of Insurance.”
2.The most current version of Commercial Auto Coverage Form CA 00 01,
providing liability coverage arising out of the ownership, maintenance,
or use of automobiles in the course of your business operations. The
Automobile Policy shall be written on an occurrence form and shall
provide coverage for all owned, hired, and non -owned automobiles or
other licensed vehicles (Code 1- Any Auto).
3.Workers’ Compensation insurance as required by the State of California
and Employer’s Liability Insurance.
4.Professional Liability (Errors and Omissions) insurance appropriate to
the Consultant’s profession.
MINIMUM LIMITS OF INSURANCE
The Consultant, or any party the Consultant subcontracts with, shall maintain limits of
liability of not less than those set forth below. However, insurance limits available to the
City, its officers, officials, employees, agents, and volunteers as additional insureds, shall
be the greater of the minimum limits specified herein or the full limit of any insurance
proceeds available to the named insured:
1.COMMERCIAL GENERAL LIABILITY:
(i)$1,000,000 per occurrence for bodily injury and property damage;
(ii)$1,000,000 per occurrence for personal and advertising injury;
(iii)$2,000,000 aggregate for products and completed operations; and,
(iv)$2,000,000 general aggregate applying separately to the work
performed under the Agreement.
DPW-S FHWA Eng. CSA, Long Form Total Fee – Contingency (09-2023)
Exhibit B
Page 28 of 36
2.COMMERCIAL AUTOMOBILE LIABILITY:
$1,000,000 per accident for bodily injury and property damage.
3.WORKERS’ COMPENSATION INSURANCE as required by the
State of California with statutory limits.
4.EMPLOYER’S LIABILITY:
(i)$1,000,000 each accident for bodily injury;
(ii)$1,000,000 disease each employee; and,
(iii)$1,000,000 disease policy limit.
5.PROFESSIONAL LIABILITY (Errors and Omissions):
(i)$1,000,000 per claim/occurrence; and,
(ii)$2,000,000 policy aggregate.
UMBRELLA OR EXCESS INSURANCE
In the event the Consultant purchases an Umbrella or Excess insurance policy(ies) to
meet the “Minimum Limits of Insurance,” this insurance policy(ies) shall “follow form” and
afford no less coverage than the primary insurance policy(ies). In addition, such Umbrella
or Excess insurance policy(ies) shall also apply on a primary and non -contributory basis
for the benefit of the City, its officers, officials, employees, agents, and volunteers.
DEDUCTIBLES AND SELF-INSURED RETENTIONS
The Consultant shall be responsible for payment of any deductibles contained in any
insurance policy(ies) required herein and the Consultant shall also be responsible for
payment of any self- insured retentions. Any deductibles or self-insured retentions must
be declared to on the Certificate of Insurance, and approved by, the the City’s Risk
Manager or designee. At the option of the City’s Risk Manager or designee, either:
(i)The insurer shall reduce or eliminate such deductibles or self-insured
retentions as respects the City, its officers, officials, employees,
agents, and volunteers; or
(ii)The Consultant shall provide a financial guarantee, satisfactory to
the City’s Risk Manager or designee, guaranteeing payment of
losses and related investigations, claim administration and defense
expenses. At no time shall the City be responsible for the payment
of any deductibles or self- insured retentions.
OTHER INSURANCE PROVISIONS/ENDORSEMENTS
The General Liability and Automobile Liability insurance policies are to contain, or be
endorsed to contain, the following provisions:
1.The City, its officers, officials, employees, agents, and volunteers are to be
covered as additional insureds. the Consultant shall establish additional
insured status for the City and for all ongoing and completed operations by
use of ISO Form CG 20 10 11 85 or both CG 20 10 04 13 and CG 20 37 04
13 or by an executed manuscript insurance company endorsement
providing additional insured status as broad as that contained in ISO Form
DPW-S FHWA Eng. CSA, Long Form Total Fee – Contingency (09-2023)
Exhibit B
Page 29 of 36
CG 20 10 11 85.
2.The coverage shall contain no special limitations on the scope of protection
afforded to the City, its officers, officials, employees, agents, and
volunteers. Any available insurance proceeds in excess of the specified
minimum limits and coverage shall be available to the Additional Insured.
3.For any claims relating to this Agreement, the Consultant’s insurance
coverage shall be primary insurance with respect to the City, its officers,
officials, employees, agents, and volunteers. Any insurance or self-
insurance maintained by the City, its officers, officials, employees, agents,
and volunteers shall be excess of the Consultant’s insurance and shall not
contribute with it. the Consultant shall establish primary and non-
contributory status by using ISO Form CG 20 01 04 13 or by an executed
manuscript insurance company endorsement that provides primary and
non-contributory status as broad as that contained in ISO Form CG 20 01
04 13.
The Workers’ Compensation insurance policy is to contain, or be endorsed to contain, the
following provision: the Consultant and its insurer shall waive any right of subrogation
against the City, its officers, officials, employees, agents, and volunteers.
If the Professional Liability (Errors and Omissions) insurance policy is written on a claims-
made form:
1.The retroactive date must be shown and must be before the effective date
of the Agreement or the commencement of work by the Consultant.
2.Insurance must be maintained, and evidence of insurance must be provided
for at least five years after completion of the Agreement work or termination
of the Agreement, whichever occurs first, or, in the alternative, the policy
shall be endorsed to provide not less than a five-year discovery period.
3.If coverage is canceled or non-renewed, and not replaced with another
claims- made policy form with a retroactive date prior to the effective date
of the Agreement or the commencement of work by the Consultant, the
Consultant must purchase “extended reporting” coverage for a minimum of
five years after completion of the Agreement work or termination of the
Agreement, whichever occurs first.
4.A copy of the claims reporting requirements must be submitted to the
City for review.
5.These requirements shall survive expiration or termination of the
Agreement.
All policies of insurance required herein shall be endorsed to provide that the coverage
shall not be cancelled, non-renewed, reduced in coverage or in limits except after thirty
(30) calendar days written notice by certified mail, return receipt requested, has been
given to the City. The Consultant is also responsible for providing written notice to the
City under the same terms and conditions. Upon issuance by the insurer, broker, or
agent of a notice of cancellation, non-renewal, or reduction in coverage or in limits, the
DPW-S FHWA Eng. CSA, Long Form Total Fee – Contingency (09-2023)
Exhibit B
Page 30 of 36
Consultant shall furnish the City with a new certificate and applicable endorsements for
such policy(ies). In the event any policy is due to expire during the work to be performed
for the City, the Consultant shall provide a new certificate, and applicable endorsements,
evidencing renewal of such policy not less than fifteen (15) calendar days prior to the
expiration date of the expiring policy.
Should any of the required policies provide that the defense costs are paid within the
Limits of Liability, thereby reducing the available limits by any defense costs, then the
requirement for the Limits of Liability of these polices will be twice the above stated limits.
The fact that insurance is obtained by the Consultant shall not be deemed to release or
diminish the liability of the Consultant, including, without limitation, liability under the
indemnity provisions of this Agreement. The policy limits do not act as a limitation upon
the amount of indemnification to be provided by the Consultant. Approval or purchase of
any insurance contracts or policies shall in no way relieve from liability nor limit the liability
of the Consultant, its principals, officers, agents, employees, persons under the
supervision of the Consultant, vendors, suppliers, invitees, consultants, sub-consultants,
subcontractors, or anyone employed directly or indirectly by any of them.
VERIFICATION OF COVERAGE
The Consultant shall furnish the City with all certificate(s) and applicable endorsements
effecting coverage required hereunder. All certificates and applicable endorsements
are to be received and approved by the City’s Risk Manager or designee prior to the City’s
execution of the Agreement and before work commences. All non-ISO endorsements
amending policy coverage shall be executed by a licensed and authorized agent or
broker. Upon request of the City, the Consultant shall immediately furnish City with a
complete copy of any insurance policy required under this Agreement, including all
endorsements, with said copy certified by the underwriter to be a true and correct copy of
the original policy. This requirement shall survive expiration or termination of this
Agreement.
SUBCONTRACTORS - If the Consultant subcontracts any or all of the services to be
performed under this Agreement, the Consultant shall require, at the discretion of the City
Risk Manager or designee, subcontractor(s) to enter into a separate side agreement with
the City to provide required indemnification and insurance protection. Any required side
agreement(s) and associated insurance documents for the subcontractor must be
reviewed and preapproved by the City Risk Manager or designee. If no side agreement
is required, the Consultant shall require and verify that subcontractors maintain insurance
meeting all the requirements stated herein and the Consultant shall ensure that the City,
its officers, officials, employees, agents, and volunteers are additional insureds. The
subcontractors' certificates and endorsements shall be on file with the Consultant, and
the City, prior to commencement of any work by the subcontractor.
EXHIBIT C
DISCLOSURE OF CONFLICT OF INTEREST
Cesar Chavez (formerly California Avenue) Complete Streets from Fruit Avenue to Mayor Avenue
YES* NO
1 Are you currently in litigation with the City of Fresno or any of its
agents? □ IXl
2 Do you represent any firm, organization, or person who is in
litigation with the City of Fresno? □
3 Do you currently represent or perform work for any clients who do
business with the City of Fresno? □ IX]
4 Are you or any of your principals, managers, or professionals,
owners or investors in a business which does business with the City □ of Fresno, or in a business which is in litigation with the City of
Fresno?
5 Are you or any of your principals, managers, or professionals, related
by blood or marriage to any City of Fresno employee who has any □ IX]
significant role in the subject matter of this service?
6 Do you or any of your subcontractors have, or expect to have, any
interest, direct or indirect, in any other contract in connection with □ �
this Project?
*If the answer to any question is yes, please explain in full below.
/', /'I I
Ex planation: r/JM' Ii �(Y11 � /'-, �
Sif �ture '-V ..,
January 8, 2025
Date
David Peters
Name
Peters Engineering Group
Company
862 Pollasky Avenue
Address
Clovis, CA 93612
City, State, Zip
□Additional page(s) attached.
DPW-S FHWA Eng. CSA, Long Form Total Fee-Contingency (09-2023)
Exhibit C
Page 31 of 36
DPW-S FHWA Eng. CSA, Long Form Total Fee – Contingency (11-2022)
Appendix A to Exhibit D
Page 32 of 36
EXHIBIT D
FEDERAL AND STATE ASSURANCES
Consultant Service Agreement between
City of Fresno (City) and Peters Enginneering Group (Consultant)
Cesar Chavez (formerly California Avenue) Complete Streets from Fruit Avenue to Mayor Avenue
1.The Consultant shall comply with and require its Subcontractors to comply with
the following:
a.23 USC §112 regarding Highways and the letting of contracts to Architects and
Engineers;
b.The provisions of the Fair Employment and Housing Act (Government Code
Section 1290-0 et seq.), and the applicable regulations promulgated thereunder
(California Code of Regulations, Title 2, Section 7285.0 et seq.). The applicable
regulations of the Fair Employment and Housing Commission implementing
Government Code Section 12900(a-f), set forth in Chapter of Division 4 of Title
2 of the California Code of Regulations are incorporated into this Agreement by
reference and made a part hereof as if set forth in full. Give a written notice of
their obligations under this clause to any labor organizations with which they
have a collective bargaining or any other agreements as appropriate. INCLUDE
THIS ENTIRE CLAUSE IN ANY AND ALL SUBCONTRACTS.
c.Appendix A attached hereto and incorporated herein.
2.Cost Principles
a.The Consultant agrees that the Contract Cost Principles and Procedures, 48
CFR, Federal Acquisition Regulations System, Chapter 1 Part 31.000 et seq.,
shall be used to determine the allowability of cost for individual items.
b.The Consultant also agrees to comply with federal procedures in accordance
with 49 CFR, Part 18, Uniform Administrative Requirements for Grants and
Cooperative Agreements to State and Local Governments.
c.Any costs for which payment has been made to the Consultant that are
determined by subsequent audit to be unallowable under 48 CFR, Federal
Acquisition Regulations System, Chapter 1, Part 31.000 et seq., are subject to
repayment by the Consultant to the City.
3.Subcontracting
a.The Consultant shall perform the work contemplated with resources available
within its own organization; and no portion of the work pertinent to this
Agreement shall be subcontracted without written authorization by the City’s
Contract Manager, except that, which is expressly identified in the approved Cost
Proposal.
b.Any subcontract in excess of $25,000 shall contain ALL the provisions stipulated
in this Agreement to be applicable to subcontractors.
c.Any substitution of subconsultants/subcontractors must be approved in writing
DPW-S FHWA Eng. CSA, Long Form Total Fee – Contingency (11-2022)
Appendix A to Exhibit D
Page 33 of 36
by the City’s Contract Manager.
4. Equipment Purchase
a. Prior authorization in writing, by the City’s Contract Manager shall be required
before the Consultant enters into any unbudgeted purchase order, or
subcontract exceeding $5,000 for supplies, equipment, or the Consultant
services. The Consultant shall provide a written request which includes an
evaluation of the necessity or desirability of incurring such costs, three
competitive quotations obtained in the manner prescribed in the City’s Municipal
Code Section 4-101(d) or 4-102 as applicable or a sole source justification as
provided in the City’s Administrative Order No. 3-3.
b. Any equipment purchased as a result of this Agreement is subject to the
following: the Consultant shall maintain an inventory of all nonexpendable
property. Nonexpendable property is defined as having a useful life of at least
two years and an acquisition cost of $5,000 or more. If the purchased equipment
needs replacement and is sold or traded in, the City shall receive a proper refund
or credit at the conclusion of the Agreement, or if the Agreement is terminated,
the Consultant may either keep the equipment and credit the City in an amount
equal to its fair market value, or sell such equipment at the best price obtainable
at a public or private sale, in accordance with established the City procedures;
and credit the City in an amount equal to the sales price. If the Consultant elects
to keep the equipment, fair market value shall be determined at the Consultant’s
expense, on the basis of a competent independent appraisal of such equipment.
Appraisals shall be obtained from an appraiser mutually agreeable to the City
and the Consultant, if it is determined to sell the equipment, the terms and
conditions of such sale must be approved in advance by the City. 49 CFR, Part
18 requires a credit to Federal funds when participating equipment with a fair
market value greater than $5,000.00 is credited to the project.
c. The above provisions shall be included in all subcontracts in excess of $25,000.
5. PROHIBITION OF EXPENDING the City STATE OR FEDERAL FUNDS FOR
LOBBYING
This section only applies to contracts where federal funding will exceed $100,000.
A. The Consultant certifies to the best of his or her knowledge and belief that:
1. No state, federal or the City appropriated funds have been paid, or
will be paid by-or-on behalf of the Consultant to any person for influencing or
attempting to influence an officer or employee of any state or federal agency; a
Member of the State Legislature or United States Congress; an officer or
employee of the Legislature or Congress; or any employee of a Member of the
Legislature or Congress, in connection with the awarding of any state or federal
contract; the making of any state or federal grant; the making of any state or
federal loan; the entering into of any cooperative agreement, and the extension,
continuation, renewal, amendment, or modification of any state or federal
contract, grant, loan, or cooperative agreement.
2. If any funds other than federal appropriated funds have been paid, or
DPW-S FHWA Eng. CSA, Long Form Total Fee – Contingency (11-2022)
Appendix A to Exhibit D
Page 34 of 36
will be paid to any person for influencing or attempting to influence an officer or
employee of any federal agency; a Member of Congress; an officer or
employee of Congress, or an employee of a Member of Congress; in
connection with this federal contract, grant, loan, or cooperative agreement;
the Consultant shall complete and submit Standard Form-LLL, "Disclosure
Form to Report Lobbying," in accordance with its instructions.
B.This certification is a material representation of fact upon which reliance was
placed when this transaction was made or entered into. Submission of this
certification is a prerequisite for making or entering into this transaction
imposed by Section 1352, Title 31, U.S. Code. Any person who fails to file the
required certification shall be subject to a civil penalty of not less than $10,000
and not more than $100,000 for each such failure.
C.the Consultant also agrees by signing this document that he or she shall
require that the language of this certification be included in all lower -tier
subcontracts, which exceed $100,000, and that all such sub recipients shall
certify and disclose accordingly.
6.NON-DISCRIMINATION CLAUSE
During the performance of this Agreement, the Consultant and its subcontractors
shall not unlawfully discriminate, harass, or allow harassment against any employee
or applicant for employment because of sex, race, color, ancestry, religious creed,
national origin, physical disability (including HIV and AIDS), mental disability, medical
condition (e.g., cancer), age (over 40), marital status, and denial of family care leave.
The Consultant and subcontractors shall insure that the evaluation and treatment of
their employees and applicants for employment are free from such discrimination and
harassment. the Consultant and subcontractors shall comply with the provisions of
the Fair Employment and Housing Act (Gov. Code §12990 (a -f) et seq.) and the
applicable regulations promulgated thereunder (California Code of Regulations, Title
2, Section 7285 et seq.). The applicable regulations of the Fair Employment and
Housing Commission implementing Government Code Section 12990 (a -f), set forth
in Chapter 5 of Division 4 of Title 2 of the California Code of Regulations, are
incorporated into this Agreement by reference and made a part hereof as if set forth
in full. The Consultant and its subcontractors shall give written notice of their
obligations under this clause to labor organizations with which they have a collective
bargaining or other Agreement.
The Consultant shall include the nondiscrimination and compliance provisions of this
clause in all subcontracts to perform work under the Agreement.
DPW-S FHWA Eng. CSA, Long Form Total Fee – Contingency (11-2022)
Appendix A to Exhibit D
Page 35 of 36
APPENDIX A TO EXHIBIT D
Consultant Service Agreement between
City of Fresno (City) and Peters Engineering Group (Consultant)
Cesar Chavez (formerly California Avenue Complete Streets
from Fruit Avenue to Mayor Avenue
(1)The Consultant shall comply with the regulations relative to nondiscrimination in
federally assisted programs of the Department of Transportation, Title 49, Code of
Federal Regulations, Part 21, as they may be amended from time to time, (hereinafter
referred to as the REGULATIONS), which are herein incorporated by reference and made
a part of this Agreement.
(2)The Consultant, with regard to the work performed by it during the Agreement, shall
not discriminate on the grounds of race, color, sex, national origin, religion, age, or
disability in the selection and retention of sub-applicants, including procurements of
materials and leases of equipment. The Consultant shall not participate either directly or
indirectly in the discrimination prohibited by Section 21.5 of the REGULATIONS, including
employment practices when the Agreement covers a program set forth in Ap pendix B of
the REGULATIONS.
(3)In all solicitations either by competitive bidding or negotiation made by the
Consultant for work to be performed under a Sub -agreement, including procurements of
materials or leases of equipment, each potential sub-applicant or supplier shall be notified
by the Consultant of the Consultant’s obligations under this Agreement and the
REGULATIONS relative to nondiscrimination on the grounds of race, color, or national
origin.
(4)The Consultant shall provide all information and reports required by the
REGULATIONS, or directives issued pursuant thereto, and shall permit access to the
Consultant’s books, records, accounts, other sources of information, and its facilities as
may be determined by STATE or Federal Highway Administration (FHWA) to be pertinent
to ascertain compliance with such REGULATIONS or directives. Where any information
required of the Consultant is in the exclusive possession of another who fails or refuses
to furnish this information, the Consultant shall so certify to the State of California (STATE)
or the FHWA as appropriate and shall set forth what efforts the Consultant has made to
obtain the information.
(5)In the event of the Consultant’s noncompliance with the nondiscrimination
provisions of this Agreement, STATE shall impose such agreement sanctions as it or the
FHWA may determine to be appropriate, including, but not limited to:
(a)withholding of payments to the City under the Agreement within a
reasonable period of time, not to exceed 90 days; and/or
(b)cancellation, termination, or suspension of the Agreement, in whole or in part.
(6)The Consultant shall include the provisions of paragraphs (1) through (6) in every
sub- agreement, including procurements of materials and leases of equipment, unless
exempt by the REGULATIONS, or directives issued pursuant thereto. the Consultant
shall take such action with respect to any sub -agreement or procurement as STATE or
Whites Bridge
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Shaw
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McKinley
Belmont
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California
Jensen
Ashlan GrantlandHayesCorneliaBrawleyMarksShaw
Bullard
Herndon
Nees
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Belmont
California
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Olive
Gettysburg
Barstow
Sierra
Alluvial
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Muscat
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OrangeBryanSunnysideArmstrongLocanFigCherryHughesFruitPolkValentineBlytheAlluvial
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CAPITAL PROJECTS
DEPARTMENT
N
0 1 2 3
Miles
VICINITY MAP
Project Limits
Project Area
District 3
City Limits
Legend
Cesar Chavez Complete
Streets Project Fruit to Mayor
Cesar Chavez Complete
Streets Project Fruit to
Mayor (Project 1)
Project ID: PW01006
Council District: 3
CPD-S Eng. CSA, Long Form Total Fee – Contingency (10-2024)
Page 1 of 32
AGREEMENT
CITY OF FRESNO, CALIFORNIA
CONSULTANT SERVICES
THIS AGREEMENT (Agreement) is made and entered into, effective
__________________________, by and between the CITY OF FRESNO, a California
municipal corporation (City), and Peters Engineering Group, a California Corporation
(Consultant).
RECITALS
WHEREAS, the City desires to obtain professional engineering services for
the design of plans and general construction contract documents for Cesar
Chavez Boulevard (formerly California Avenue) Enhancements from Fruit Avenue to
Pottle Avenue (Project); and
WHEREAS, the Consultant is engaged in the business of furnishing services as a
Professional Engineer and hereby represents that it desires to and is professionally and
legally capable of performing the services called for by this Agreement; and
WHEREAS, the Consultant acknowledges that this Agreement is subject to the
requirements of Fresno Municipal Code Section 4-107 and Administrative Order No. 6-19;
and
WHEREAS, this Agreement will be administered for the City by its Capital Projects
Director (Director) or designee.
AGREEMENT
NOW, THEREFORE, in consideration of the foregoing and of the covenants,
conditions, and promises hereinafter contained to be kept and performed by the
respective parties, it is mutually agreed as follows:
1. Scope of Services.
The Consultant shall perform the services described herein and in Exhibit A to complete
the Project more fully described in Exhibit A, and this shall include all work incidental to,
or necessary to perform, such services even though not specifically described in Exhibit
A.The services of the Consultant shall consist of five Parts as described below. A
separate Notice to Proceed will be issued for each of the aforementioned Parts. By entry
into this Agreement and upon the City’s issuance of a written "Notice to Proceed," the
City contracts for the services in Part One. The Consultant shall not perform any other
Part of the Agreement, and this Agreement shall not be a contract for any other Part, until
further performance is authorized by the City’s issuance of a written “Notice to Proceed.”
It shall, however, remain the Consultant’s offer to perform all remaining parts described
herein. In the event the Consultant performs services without the City’s prior written
authorization, the Consultant will not be entitled to compensation for such services.
(a)Part One. Schematic Design Phase.
(1)The Consultant shall review the description of the Project set
forth in Exhibit A and consult with designated representatives of the City to
ascertain the requirements of the Project.
CPD-S Eng. CSA, Long Form Total Fee – Contingency (10-2024)
Page 2 of 32
(2) The Consultant shall conduct studies and investigations as
necessary to confirm requirements of design including, but not limited to, (i)
consulting with the various utility agencies, and (ii) obtaining all information
and data from the respective responsible City department/division that is
available in the City’s records and is required by the Consultant in
connection with the consulting services including, but not limited to, maps,
surveys, reports, information, restrictions, and easements. The Consultant
shall notify the City if a topographic survey is required.
(3) The Consultant shall provide a preliminary evaluation of the
Project taking into consideration the City’s estimate of the cost of
construction (Construction Budget) of Twenty Million Eighty Four Thousand
dollars ($20,084,000), including alternative approaches to design and
construction of the Project.
(4) Based upon the mutually agreed upon Project requirements
and any adjustments authorized by the City in the Construction Budget, the
Consultant shall design and prepare schematic design drawings and other
documents for review, modification, if required, and acceptance by the City
staff sufficient to show the concept and scope of the proposed Project and
the scale and relationship of Project components.
(5) The Consultant shall submit a preliminary estimate of
construction cost for review and acceptance by the City. As used herein,
"construction cost" means the cost of construction under the general
construction contract and does not include The Consultant’s compensation
as herein provided. Such estimate shall include, and shall separately state,
the cost of any add or deduct alternatives, the cost of any work which may
be let on a segregated bid basis and any equipment or fixtures which may
be incorporated in or excluded from the general construction contract as
may be necessary to stay within the Construction Budget.
(6) The Consultant shall make as many submittals as may be
necessary or desirable to obtain the acceptance by the City and shall assist
the City in applying for and obtaining from applicable public agencies any
approval permit, or waiver required by law, which assistance shall include,
but not be limited to, making Project information available to the City.
(7) The Consultant may not rely upon any as-builts provided by
the City but shall investigate the existing conditions and ascertain the
adequacy of such as-builts for the Consultant’s design. The Consultant
shall bring to the City’s attention any discrepancies in the as-builts that are
discovered by the Consultant. The City makes no representations regarding
any as-builts.
(8) Services shall be undertaken and completed in a sequence
assuring expeditious completion. All services shall be rendered, and
deliverables submitted within one hundred twenty (120) calendar days from
the issuance of a Notice to Proceed for this Part unless an extension of time
is approved in writing by the Director. Re-submittals, as necessary to obtain
CPD-S Eng. CSA, Long Form Total Fee – Contingency (10-2024)
Page 3 of 32
the acceptance by the City, shall be submitted to the City within seven (7)
calendar days from receipt of the City’s comments unless an extension of
time is approved in writing by the Director.
(b) Part Two. Design Development Phase. After review and
acceptance of the schematic design phase and issuance of a written Notice to
Proceed with this Part Two:
(1) Based upon the accepted schematic design documents and
the Construction Budget, including authorized revisions thereto, the
Consultant shall prepare for review and acceptance by the City the design
development documents consisting of drawings and other documents to fix
and describe the size and character of the Project as necessary to show
treatment of significant details. In addition, the Consultant shall provide
outline specifications of the work as to kinds of materials, systems, and
other such design elements as may be required. Such design development
documents and specifications shall be subject to review and acceptance by
the City.
(2) The Consultant shall submit a revised estimate of construction
cost for review and acceptance by the City. The revised estimate shall
include, but shall separately state, the cost of any add or deduct alternates,
any work which may be let on a segregated bid basis, and any furnishings,
equipment or fixtures which may be incorporated in or excluded from the
general construction contract as may be necessary to stay within the
Construction Budget, including authorized revisions thereto.
(3) In the event that the revised estimate of construction cost
exceeds the preliminary estimate of construction cost previously accepted,
excluding therefrom any add alternate, any work which may be let on a
segregated bid basis and any furnishing, equipment or fixtures which was
identified in Part 1 as that which may be excluded from the general
construction contract, the City shall have the option of accepting or rejecting
the revised estimate and the Consultant shall, at no additional cost to the
City, make such design changes as may be necessary to reduce the revised
estimate so that it shall not exceed the preliminary estimate of construction
cost previously accepted by the City. The City shall not increase the scope
of the Project except by modification of this Agreement which shall include
an agreed upon increase in the Consultant’s compensation.
(4) The Consultant shall make as many submittals as may be
necessary or desirable to obtain the acceptance by the City and shall assist
the City in applying for and obtaining from applicable public agencies any
approval, permit, or waiver required by law, which assistance shall include,
but not be limited to, making Project information available to the
City.Services shall be undertaken and completed in a sequence assuring
expeditious completion. All services shall be rendered, and deliverables
submitted within seventy (70) calendar days from the issuance of a Notice
to Proceed for this Part unless an extension of time is approved in writing
CPD-S Eng. CSA, Long Form Total Fee – Contingency (10-2024)
Page 4 of 32
by the Director. Re-submittals, as necessary to obtain the acceptance by
the City, shall be submitted to the City within seven (7) calendar days from
receipt of the City’s comments unless an extension of time is approved in
writing by the Director.
(c) Part Three. Construction Document Phase. After review and
acceptance of the design development phase and issuance of a written Notice to
Proceed with this Part Three:
(1) The Consultant shall prepare from the accepted design
development documents, detailed plans and specifications setting forth the
complete work to be done, and the materials, workmanship, finishes and
equipment, fixtures, and site work required. The Consultant shall also
prepare necessary bidding information, general and special conditions
of the general construction contract, technical specifications of the
general construction contract, and the bid proposal and general
construction contract forms. Such documents shall be subject to the review
and acceptance by the City. The Consultant shall cooperate with, assist
and be responsive to Purchasing Manager in preparation of all documents
including, without limitation, slip-sheeting final documents for printing when
requested. The City’s Standard Specifications must be used by the
Consultant where possible. Final drawings shall be drawn, printed, or
reproduced by a process providing a permanent record in black on vellum,
tracing cloth, polyester base film, or high-quality bond copy. Bid, general
conditions, contract and bond document forms or formats regularly used by
the City shall be used by the Consultant unless the Director determines
they would be impractical for this Project. the Consultant shall be
responsible for assuring that the special conditions, technical specifications,
and any other documents prepared by the Consultant are consistent with
any documents regularly used by the City that are used for this Project.
(2) Upon request of the City, the Consultant shall provide the
calculations used to determine the general construction contract quantities;
and structural calculations for the purpose of obtaining any building permits.
(3) The Consultant shall make as many submittals as may be
necessary or desirable to obtain the acceptance by the City and shall assist
the City in applying for and obtaining from applicable public agencies any
approval, permit, report, statement, or waiver required by law, which
assistance shall include, but not be limited to, making Project information
available to the City.
(4) The Consultant shall provide the City with four (4) sets of
completed plans and four (4) sets of completed specifications for review
and final acceptance by the City. Should the plans and specifications as
submitted by the Consultant not be accepted by the City, the Consultant
shall revise the plans and specifications as needed to obtain final
acceptance at no additional cost to the City.
(5) After acceptance of final corrections, if any, the Consultant
CPD-S Eng. CSA, Long Form Total Fee – Contingency (10-2024)
Page 5 of 32
shall provide the City with one set of accepted reproducible tracings and bid
documents for the Project. In addition, the Consultant shall provide the City
with one complete set of CAD/System disk files of drawings and complete
disk files of specifications in the following format: AutoCAD 2018 and
Microsoft.
(6) The Consultant shall submit a final estimate of construction
cost for review and acceptance by the City. Such estimate shall be
calculated as of the date all general construction contract documents are
delivered to the City in final form ready for reproduction and advertising.
Such estimate shall include, but shall separately state, the cost of any add
or deduct alternates, any work which may be let on a segregated basis, and
any equipment, or fixtures which may be incorporated in or excluded from
the general construction contract.
(7) In the event that the final estimate of construction cost
exceeds the revised estimate of construction cost previously accepted,
excluding therefrom any add alternate, any work which may be let on a
segregated bid basis and any furnishings, equipment or fixtures which was
identified in the final revised estimate in Part 2 as that which may be
excluded from the general construction contract, the City shall have the
option of accepting or rejecting the final estimate. If the City elects to
reject the final estimate, the Consultant shall at no additional cost to the
City, make such design changes as may be necessary to reduce the final
estimate so that it shall not exceed the revised estimate of construction cost
previously accepted by the City.
(8) Services shall be undertaken and completed in a sequence
assuring expeditious completion. All services shall be rendered, and
deliverables submitted within fourty-five (45) calendar days from the
issuance of a Notice to Proceed for this Part unless an extension of time is
approved in writing by the Director. Re-submittals, as necessary to obtain
the acceptance by the City, shall be submitted to the City within seven (7)
calendar days from receipt of the City’s comments unless an extension of
time is approved in writing by the Director.
(d) Part Four. Bidding Phase. After review and acceptance of the
construction document phase and if the City elects to proceed to bid, which shall
constitute a written Notice to Proceed with this Part Four:
(1) The Consultant shall assist the City in obtaining bids. The
Consultant shall not communicate with potential bidders regarding this
Project without the express prior written authorization of the City’s
Purchasing Manager.
(2) The Consultant shall, within 7 calendar days of any request
by the City, expeditiously draft and promptly provide addendum as
determined by the City to be reasonable or necessary for the bidding
process.
CPD-S Eng. CSA, Long Form Total Fee – Contingency (10-2024)
Page 6 of 32
(3) If the lowest responsible bid received for the general
construction contract exceeds by 10% or more the final estimate of
construction cost previously accepted by the City, excluding therefrom any
add alternate, any work which may be let on a segregated bid basis and
any furnishings, equipment or fixtures which are excluded from the general
construction contract, the Consultant shall, within 14 calendar days of any
request by the City, revise the plans and specifications as may be
necessary to stay within 10% of such final estimate of construction cost, at
no additional cost to the City provided such bid is received within 180
calendar days after completion of services in Section 1(c) of this Agreement.
The Consultant shall also submit such revised plans and specifications,
together with a new final estimate of construction cost, to the City for review
and acceptance. This procedure, using the latest accepted final estimate of
construction cost, shall, upon written notice to the Consultant from the
Director, be repeated until an acceptable bid is received that does not
exceed the accepted final estimate of construction cost by more than 10%.
(e) Part Five. Construction Phase and General Construction Contract
Administration. The construction phase will begin with the award of the general
construction contract, which shall constitute a written Notice to Proceed with this
Part Five and will terminate when a Notice of Completion is filed. Upon award of
a general construction contract for the Project and under the direction of the
Director through the City’s designated Construction Manager for the Project:
(1) The Consultant shall attend the pre-construction conference
and, if called upon by the City, act on the City’s behalf in discussing the
various aspects of the construction phase.
(2) The Consultant shall review and recommend in writing to the
City acceptance or non-acceptance of shop drawings, equipment and
material submittals of the general construction contractor as required by the
general construction contract and applicable laws and regulations in a
timely manner. The period for the Consultant review shall be as specified
in the general construction contract, except if such period is not so specified,
the period shall be as determined in the pre-construction conference as
mutually agreed upon by the City, the Consultant, and the general
construction contractor.
(3) The Consultant shall, at intervals appropriate to the state of
construction, familiarize itself with the progress and quality of the work and
determine in general if the work is proceeding in accordance with the
general construction contract documents, and keep the City informed of the
progress of the work. In the event that the Consultant’s visit to the site
results in the discovery of any defect or deficiencies in the work of the
general construction contractor, the Consultant shall immediately advise the
City and document, in writing, the work the Consultant deems substandard,
and make recommendations where appropriate to reject any work not
conforming to the intended design or specifications. Based on the
Consultant’s best knowledge, information and belief, the Consultant shall
CPD-S Eng. CSA, Long Form Total Fee – Contingency (10-2024)
Page 7 of 32
provide the City a general written assurance that the work covered by a
payment application meets the standards in the general construction
contract. As to technical aspects, the Consultant shall provide a written
judgment of the acceptability of the work for payment applications and final
acceptance, subject to the City’s right to overrule the Consultant.
(4) Upon written request by the City, the Consultant shall render
interpretations of the general construction contract documents necessary
for the proper execution or progress of the work.
(5) Upon written request by the City, the Consultant shall render
written recommendations on change orders, claims, disputes, or other
questions arising out of the general construction contract, in a timely
manner. Recommendations by the Consultant in favor of a change order
that is consequently accepted by the City shall constitute approval by the
Consultant who shall then approve the change order in writing. The
Consultant shall not unreasonably withhold written approval in the event the
City accepts a change order that the Consultant recommended to be
rejected. In the event of any technical disputes, the Consultant shall provide
the City with the Consultant’s written interpretation of the contract
documents. The period for the Consultant review shall be as specified in
the general construction contract, except if such period is not so specified,
the period shall be as determined in the pre- construction conference as
mutually agreed upon by the City, the Consultant, and the general
construction contractor. If the City, the Consultant, and the respective
general construction contractor are unable to mutually agree on such period
for the Consultant review, then the City will make the determination and that
determination will be final.
(6) Upon written request by the City, the Consultant shall provide
such design and specification services as may be requested by the City to
implement change orders necessary for clarification or interpretation of the
general construction contract documents or which may have resulted from
errors or omissions by the Consultant.
(7) Where change orders arise as a result of an increase in the
scope of work or are due to unforeseeable conditions, the parties may
modify this Agreement, which modification shall include an agreed upon
increase in the Consultant’s compensation.
(8) Upon written request of the City, the Consultant shall assist
the City in the preparation of Progress Payment Estimates and other related
construction reports.
(9) The Consultant shall provide the City with two sets of original
as-grade plans wet-stamped and signed by the Consultant’s Engineer of
Record for the Project submitted for final approval by the City’s Building and
Safety Services Division of the Development and Resource Management
Department on all projects located outside the Right of Way.
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(10) the Consultant shall prepare Record Drawings by updating
the accepted general construction documents in Part 3 to reflect all changes
or deviations that occurred during construction as reflected on or from each
of the following: (i) the general construction contractor p rovided red-lined
plans, (ii) those furnished by the City, (iii) the Consultant provided Request
for Information responses, and (iv) any the Consultant bulletins,
amendments, or clarifications. The Consultant shall provide the City with
one set of vellum Record Drawings for the Project within twenty-one (21)
calendar days from receipt of red-lined field markups unless an extension
of time is approved in writing by the Director. Re-submittals, as necessary
to obtain the acceptance by the City, shall be submitted to the City within
fourteen (14) calendar days from receipt of the City comments unless an
extension of time is approved in writing by the Director. In addition, the
Consultant shall provide the City with one complete set of CAD/System disk
files of Record Drawings in the following format: Autocad 2018 and
Microsoft.
2. The City’s responsibilities. The City will:
(a) Provide, upon request and cooperation of the Consultant, access to,
and make all provisions necessary to, enter upon public or private lands as
required for the Consultant to perform such services and inspections as are
required in development of the Project; provided, however, if the City is unable to
obtain access to enter upon public or private lands, the Consultant shall not be
relieved from performing its services as to those public and private lands that are
accessible. If the Consultant notifies the City that a topographic survey is required
by the Consultant in connection with the consulting services, then the City will be
responsible for conducting the topographic survey.
(b) Manage and be responsible for all negotiations with owners in
connection with land or easement acquisition and provide all required title reports
and appraisals.
(c) With the exception of preparing correspondence required for design,
hold all required special meetings, serve all public and private notices, receive and
act upon all protests, and perform all services customarily performed by owners as
are necessary for the orderly progress of the work and the successful completion
of the Project, and pay all costs incidental thereto.
(d) Select the testing laboratory and pay the cost of borings, samplings,
and other work involved in soils testing during construction.
(e) Conduct onsite inspection during construction to check quality and
quantity of work as conditions warrant and be responsible for assuring that the
general construction contractor carries out all construction work in accordance with
the plans and specifications. However, this does not release the Consultant from
its responsibility to make periodic site visits under Section 1(e) for the purpose of
observing the work to determine its general conformity with the plans and
specifications and reporting its findings to the City.
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(f) Prepare all change orders during construction in cooperation with the
Consultant.
(g) Prepare all Progress Payment Estimates in cooperation with the
Consultant following its general assurance that the work covered by a payment
application meets the standards in the general construction contract documents
based upon the Consultant’s best knowledge, information, and belief.
(h) Pay, or cause to be paid, plan check fees, conditional use permit fees
and site plan review fees.
(i) Arrange for and pay, or cause to be paid, any fees associated with
Environmental Impact Reports or Statements.
(j) Give reasonably prompt consideration to all matters submitted by the
Consultant for acceptance to the end that there will be no substantial delays in the
Consultant’s program of work. For an acceptance, approval, authorization, a
request, or any direction to the Consultant to be binding upon the City under the
terms of this Agreement, such acceptance, approval, authorization, request, or
direction must be in writing, duly authorized by the City and signed on behalf of the
City by the Director.
3. Compensation.
(a) The Consultant’s sole compensation for satisfactory performance of
all services required or rendered pursuant to this Agreement shall be a total fee
of nine hundred ten thousand three hundred thirty-five dollars ($910,335) , and a
contingency amount not to exceed ninety-one thousand thirty-four dollars
($91,034) for any additional work rendered pursuant to Subsection (d) below and
authorized in writing by the Director. Such fees include all expenses incurred by
the Consultant in performance of such services.
(b) Detailed statements shall be rendered monthly and will be payable
in the normal course of City business. Such statements shall be for an amount no
greater than that attributable to the Part upon which the Consultant is then
engaged as provided in Section 3(c) below.
(c) For purposes of determining the division of the total compensation to
the Consultant as provided in Section 3(a) above, or should performance of any
succeeding Part not be authorized by the City as provided in Section 1 of this
Agreement, it is agreed that the total compensation shall be allocated to the five
Parts of the Consultant’s performance as follows: Part 1 – thirty-seven percent
(37%), Part 2 – twenty-four percent (24%), Part 3 – thirty-one percent (31%), Part
4 – three percent (3%) and Part 5 – five percent (5%). Prior to the award of a
general construction contract for the Project, or should such contract not be
awarded, the approved Parts as provided above shall be utilized for purposes of
determining the fee due to the Consultant.
(d) The parties may modify this Agreement to increase or decrease the
scope of services or provide for the rendition of services not required by this
Agreement, which modification shall include an adjustment to the Consultant’s
compensation. Any change in the scope of services must be made by written
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amendment to the Agreement signed by an authorized representative for each
party. The Consultant shall not be entitled to any additional compensation if
services are performed prior to a signed written amendment. Subsequent to the
date of completion of Part Three, changes due to Code revisions or enactments
adopted after such date shall constitute additional work subject to this Section 3(d).
4. Termination, Remedies, Force Majeure, and Consolidation of Disputes.
(a) This Agreement shall terminate without any liability of the City to the
Consultant upon the earlier of: (i) the Consultant’s filing for protection under the
federal bankruptcy laws, or any bankruptcy petition or petition for receiver
commenced by a third party against the Consultant; (ii) seven calendar days prior
written notice with or without cause by the City to the Consultant; (iii) the City’s
non-appropriation of funds sufficient to meet its obligations hereunder during any
City fiscal year of this Agreement, or insufficient funding for the Project; or (iv)
expiration of this Agreement.
(b) Immediately upon any termination or expiration of this Agreement,
the Consultant shall: (i) immediately stop all work hereunder; (ii) immediately cause
any and all of its subcontractors to cease work; and (iii) return to the City any and
all unearned payments and all properties and materials in the possession of the
Consultant that are owned by the City. Subject to the terms of this Agreement, the
Consultant shall be paid compensation for services satisfactorily performed prior
to the effective date of termination. The Consultant shall not be paid for any work
or services performed or costs incurred which reasonably could have been
avoided.
(c) In the event of termination due to failure of the Consultant to
satisfactorily perform in accordance with the terms of this Agreement, the City may
withhold an amount that would otherwise be payable as an offset to, but not in
excess of, the City’s damages caused by such failure. In no event shall any
payment by the City pursuant to this Agreement constitute a waiver by the City of
any breach of this Agreement which may then exist on the part of the Consultant,
nor shall such payment impair or prejudice any remedy available to the City with
respect to the breach.
(d) Upon any breach of this Agreement by the Consultant, the City may:
(i) exercise any right, remedy (in contract, law, or equity), or privilege which may
be available to it under applicable laws of the State of California or any other
applicable law; (ii) proceed by appropriate court action to enforce the terms of the
Agreement; and/or (iii) recover all direct, indirect, consequential, economic, and
incidental damages for the breach of the Agreement. If it is determined that the
City improperly terminated this Agreement for default, such termination shall be
deemed a termination for convenience.
(e) The Consultant shall provide the City with adequate written
assurances of future performance, upon the request of the Director or designee,
in the event the Consultant fails to comply with any terms or conditions of this
Agreement.
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(f) The Consultant shall be liable for default unless nonperformance is
caused by an occurrence beyond the reasonable control of the Consultant and
without its fault or negligence such as, acts of God or the public enemy, acts of the
City in its contractual capacity, fires, floods, epidemics, quarantine restrictions,
strikes, unusually severe weather, and delays of common carriers. The Consultant
shall notify the Director or designee in writing as soon as it is reasonably possible
after the commencement of any excusable delay, setting forth the full particulars
in connection therewith, and shall remedy such occurrence with all reasonable
dispatch, and shall promptly give written notice to the Director or designee of the
cessation of such occurrence.
(g) the Consultant agrees that, notwithstanding any contrary provision in
this Agreement, any dispute arising from or relating to this Agreement (including,
without limitation, disputes based on contract, tort, equity, or statute) may, at the
City’s option, be joined and consolidated with any other dispute or disputes arising
from or relating to the Project so that all disputes arising from or relating to the
Project may be resolved in a single proceeding. the Consultant hereby specifically
waives any objection it may otherwise have to such joinder and consolidation and
specifically consents to mediation, arbitration or any other dispute resolution
mechanism, forum or proceeding necessary to effectuate the joinder and
consolidation contemplated by this provision.
5. Confidential Information, Ownership of Documents and Copyright License.
(a) Any reports, information, or other data prepared or assembled by the
Consultant pursuant to this Agreement shall not be made available to any
individual or organization by the Consultant without the prior written approval of
the City. During the term of this Agreement, and thereafter, the Consultant shall
not, without the prior written consent of the City, disclose to anyone any
Confidential Information. The term Confidential Information for the purposes of this
Agreement shall include all proprietary and confidential information of the City,
including but not limited to business plans, marketing plans, financial information,
designs, drawings, specifications, materials, compilations, documents,
instruments, models, source or object codes and other information disclosed or
submitted, orally, in writing, or by any other med ium or media. All Confidential
Information shall be and remain confidential and proprietary in the City.
(b) Any and all original sketches, pencil tracings of working drawings,
plans, computations, specifications, computer disk files, writings and other
documents prepared or provided by the Consultant pursuant to this Agreement are
the property of the City at the time of preparation and shall be turned over to the
City upon expiration or termination of the Agreement or default by the Consultant.
The Consultant grants the City a copyright license to use such drawings and
writings. The Consultant shall not permit the reproduction or use thereof by any
other person except as otherwise expressly provided herein. The City may modify
the design including any drawings or writings. Any use by the City of the aforesaid
sketches, tracings, plans, computations, specifications, computer disk files,
writings, and other documents in completed form as to other projects or extensions
of this Project, or in uncompleted form, without specific written verification by the
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Consultant will be at the City’s sole risk and without liability or legal exposure to
the Consultant. The Consultant may keep a copy of all drawings and specifications
for its sole and exclusive use.
(c) If the Consultant should subcontract all or any portion of the services
to be performed under this Agreement, the Consultant shall cause each
subcontractor to also comply with the requirements of this Section 5.
(d) This Section 5 shall survive expiration or termination of this
Agreement.
6. Professional Skill.
It is further mutually understood and agreed by and between the parties hereto that
inasmuch as the Consultant represents to the City that the Consultant and its
subcontractors, if any, are skilled in the profession and shall perform in accordance with
the standards of said profession necessary to perform the services agreed to be done by
it under this Agreement, the City relies upon the skill of the Consultant and any
subcontractors to do and perform such services in a skillful manner and the Consultant
agrees to thus perform the services and require the same of any subcontractors.
Therefore, any acceptance of such services by the City shall not operate as a release of
the Consultant or any subcontractors from said professional standards.
7. Indemnification.
To the furthest extent allowed by law, including California Civil Code section 2782,
Consultant shall indemnify, hold harmless and defend City and each of its officers,
officials, employees, agents, and volunteers from any and all loss, liability, fines,
penalties, forfeitures, costs and damages (whether in contract, tort or strict liability,
including but not limited to personal injury, death at any time and property damage), and
from any and all claims, demands and actions in law or equity (including reas onable
attorney's fees, litigation expenses and cost to enforce this agreement) that arise out of,
pertain to, or relate to the negligence, recklessness or willful misconduct of Consultant,
its principals, officers, employees, agents, or volunteers in the performance of this
Agreement.
If Consultant should subcontract all or any portion of the services to be performed under
this Agreement, Consultant shall require each subcontractor to indemnify, hold harmless
and defend City and each of its officers, officials, employees, agents, and volunteers in
accordance with the terms of the preceding paragraph.
This section shall survive termination or expiration of this Agreement.
8. Insurance.
(a) Throughout the life of this Agreement, the Consultant shall pay for
and maintain in full force and effect all insurance as required in Exhibit B, which
is incorporated into and part of this Agreement, with an insurance company(ies)
either (i) admitted by the California Insurance Commissioner to do business in the
State of California and rated no less than “A-VII” in the Best’s Insurance Rating
Guide, or (ii) as may be authorized in writing by the City’s Risk Manager or
designee at any time and in its sole discretion. The required policies of insurance
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as stated in Exhibit B shall maintain limits of liability of not less than those amounts
stated therein. However, the insurance limits available to the City, its officers,
officials, employees, agents, and volunteers as additional insureds, shall be the
greater of the minimum limits specified therein or the full limit of any insurance
proceeds to the named insured.
(b) If at any time during the life of the Agreement or any extension, the
Consultant or any of its subcontractors/sub-consultants fail to maintain any
required insurance, all services and work under this Agreement shall be
discontinued immediately, and all payments due, or that become due, to the
Consultant shall be withheld until insurance is in compliance with the requirements.
Any failure to maintain the required insurance shall be sufficient cause for the City
to terminate this Agreement. No action taken by the City pursuant to this section
shall in any way relieve the Consultant of its responsibilities under this Agreement.
The phrase “fail to maintain any required insurance” shall include, without
limitation, notification received by the City that an insurer has commenced
proceedings, or has had proceedings commenced against it, indicating that the
insurer is insolvent.
(c) The fact that insurance is obtained by the Consultant shall not be
deemed to release or diminish the liability of the Consultant, including, without
limitation, liability under the indemnity provisions of this Agreement. The duty to
indemnify the City shall apply to all claims and liability regardless of whether any
insurance policies are applicable. The policy limits do not act as a limitation upon
the amount of indemnification to be provided by the Consultant. Approval or
purchase of any insurance contracts or policies shall in no way relieve from liability
nor limit the liability of the Consultant, its principals, officers, agents, employees,
persons under the supervision of the Consultant, vendors, suppliers, invitees,
consultants, sub-consultants, subcontractors, or anyone employed directly or
indirectly by any of them.
9. Conflict of Interest and Non-Solicitation.
(a) Prior to the City’s execution of this Agreement, the Consultant shall
complete a City of Fresno conflict of interest disclosure statement in the form as
set forth in Exhibit C. During the term of this Agreement, the Consultant shall have
the obligation and duty to immediately notify the City in writing of any change to
the information provided by the Consultant in such statement.
(b) The Consultant shall comply, and require its subcontractors to
comply, with all applicable (i) professional canons and requirements governing
avoidance of impermissible client conflicts; and (ii) federal, state, and local conflict
of interest laws and regulations including, without limitation, California Government
Code Section 1090 et. Seq., the California Political Reform Act (California
Government Code Section 87100 et. Seq.), the regulations of the Fair Political
Practices Commission concerning disclosure and disqualification (2 California
Code of Regulations Section 18700 et. Seq.) and Section 4-112 of the Fresno
Municipal Code (Ineligibility to Compete). At any time, upon written request of the
City, the Consultant shall provide a written opinion of its legal counsel and that of
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any subcontractor that, after a due diligent inquiry, the Consultant and the
respective subcontractor(s) are in full compliance with all laws and regulations.
The Consultant shall take, and require its subcontractors to take, reasonable steps
to avoid any appearance of a conflict of interest. Upon discovery of any facts giving
rise to the appearance of a conflict of interest, the Consultant shall immediately
notify the City of these facts in writing.
(c) Consultant’s duties and services under this Agreement shall not
include preparing or assisting the City with any portion of the City’s preparation of
a request for proposals, request for qualifications, or any other solicitation
regarding a subsequent or additional contract with the City. The City entering this
Agreement shall at all times retain responsibility for public contracting, including
with respect to any subsequent phase of this Project. Consultant’s participation in
the planning, discussions, or drawing of project plans or specifications shall be
limited to conceptual, preliminary, or initial plans or specifications. Consultant shall
cooperate with the City to ensure that all bidders for a subsequent contract on any
subsequent phase of this Project have access to the same information, including
all conceptual, preliminary, or initial plans or specifications prepared by Consultant
pursuant to this Agreement.
(d) In performing the work or services to be provided hereunder, the
Consultant shall not employ or retain the services of any person while such person
either is employed by the City or is a member of any the City council, commission,
board, committee, or similar City body. This requirement may be waived in writing
by the City Manager, if no actual or potential conflict is involved.
(e) The Consultant represents and warrants that it has not paid or
agreed to pay any compensation, contingent or otherwise, direct, or indirect, to
solicit or procure this Agreement or any rights/benefits hereunder.
(f) Neither the Consultant, nor any of the Consultant’s subcontractors
performing any services on this Project, shall bid for, assist anyone in the
preparation of a bid for, or perform any services pursuant to, any other contract in
connection with this Project. the Consultant and any of its subcontractors shall
have no interest, direct or indirect, in any other contract with a third party in
connection with this Project unless such interest is in accordance with all
applicable law and fully disclosed to and approved by the City Manager, in advance
and in writing.
(g) If the Consultant should subcontract all or any portion of the work to
be performed or services to be provided under this Agreement, the Consultant
shall include the provisions of this Section 9 in each subcontract and require its
subcontractors to comply therewith.
(h) This Section 9 shall survive expiration or termination of this
Agreement.
10. Recycling Program.
In the event the Consultant maintains an office or operates a facility(ies), or is required
herein to maintain or operate same, within the incorporated limits of the City of Fresno,
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the Consultant at its sole cost and expense shall:
(a) Immediately establish and maintain a viable and ongoing recycling
program, approved by the City’s Solid Waste Management Division, for each office
and facility. Literature describing the City recycling programs is available from the
City’s Solid Waste Management Division and by calling City of Fresno Recycling
Hotline at (559) 621-1111.
(b) Immediately contact the City’s Solid Waste Management Division at
(559) 621-1452 and schedule a free waste audit and cooperate with such Division
in their conduct of the audit for each office and facility.
(c) Cooperate with and demonstrate to the satisfaction of the City’s Solid
Waste Management Division the establishment of the recycling program in
paragraph (a) above and the ongoing maintenance thereof.
11. General Terms.
(a) Except as otherwise provided by law, all notices expressly required
of the City within the body of this Agreement, and not otherwise specifically
provided for, shall be effective only if signed by the Director or designee.
(b) Records of the Consultant’s expenses pertaining to the Project shall
be kept on a generally recognized accounting basis and shall be available to the
City or its authorized representatives upon request during regular business hours
throughout the life of this Agreement and for a period of three years after final
payment or, if longer, for any period required by law. In addition, all books,
documents, papers, and records of the Consultant pertaining to the Project shall
be available for the purpose of making audits, examinations, excerpts, and
transcriptions for the same period of time. If any litigation, claim, negotiations,
audit, or other action is commenced before the expiration of said time period, all
records shall be retained and made available to the City until such action is
resolved, or until the end of said time period whichever shall later occur. If the
Consultant should subcontract all or any portion of the services to be performed
under this Agreement, the Consultant shall cause each subcontractor to also
comply with the requirements of this paragraph. This Section 11(b) shall survive
expiration or termination of this Agreement.
(c) Prior to execution of this Agreement by the City, the Consultant shall
have provided evidence to the City that the Consultant is licensed to perform the
services called for by this Agreement (or that no license is required). If the
Consultant should subcontract all or any portion of the work or services to be
performed under this Agreement, the Consultant shall require each subcontractor
to provide evidence to the City that subcontractor is licensed to perform the
services called for by this Agreement (or that no license is required) before
beginning work.
(d) The Consultant’s services pursuant to this Agreement shall be
provided under the supervision of Will Washburn, PE, and he/she shall not assign
another to supervise the Consultant’s performance of this Agreement without the
prior written approval of the Director.
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12. Nondiscrimination.
To the extent required by controlling federal, state, and local law, the Consultant shall not
employ discriminatory practices in the provision of services, employment of personnel, or
in any other respect on the basis of race, religious creed, color, national origin, ancestry,
physical disability, mental disability, medical condition, marital status, sex, age, sexual
orientation, ethnicity, status as a disabled veteran or veteran of the Vietnam era. Subject
to the foregoing and during the performance of this Agreement, the Consultant agrees as
follows:
(a) The Consultant will comply with all applicable laws and regulations
providing that no person shall, on the grounds of race, religious creed, color,
national origin, ancestry, physical disability, mental disability, medical condition,
marital status, sex, age, sexual orientation, ethnicity, status as a disabled veteran
or veteran of the Vietnam era be excluded from participation in, be denied the
benefits of, or be subject to discrimination under any program or activity made
possible by or resulting from this Agreement.
(b) The Consultant will not discriminate against any employee or
applicant for employment because of race, religious creed, color, national origin,
ancestry, physical disability, mental disability, medical condition, marital status,
sex, age, sexual orientation, ethnicity, status as a disabled veteran or veteran of
the Vietnam era. The Consultant shall ensure that applicants are employed, and
the employees are treated during employment, without regard to their race,
religious creed, color, national origin, ancestry, physical disability, mental disability,
medical condition, marital status, sex, age, sexual orientation, ethnicity, status as
a disabled veteran or veteran of the Vietnam era. Such requirement shall apply to
the Consultant’s employment practices including, 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 Consultant agrees to post in
conspicuous places, available to employees and applicants for employment,
notices setting forth the provision of this nondiscrimination clause.
(c) The Consultant will, in all solicitations or advertisements for
employees placed by or on behalf of the Consultant in pursuit hereof, state that all
qualified applicants will receive consideration for employment without regard to
race, religious creed, color, national origin, ancestry, physical disability, mental
disability, medical condition, marital status, sex, age, sexual orientation, ethnicity,
status as a disabled veteran or veteran of the Vietnam era.
(d) The Consultant will send to each labor union or representative of
workers with which it has a collective bargaining agreement or other contract or
understanding, a notice advising such labor union or workers’ representatives of
the Consultant’s commitment under this section and shall post copies of the notice
in conspicuous places available to employees and applicants for employment.
(e) If the Consultant should subcontract all or any portion of the services
to be performed under this Agreement, the Consultant shall cause each
subcontractor to also comply with the requirements of this Section 12.
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13. Independent Contractor.
(a) In the furnishing of the services provided for herein, the Consultant
is acting solely as an independent contractor. Neither the Consultant, nor any of
its officers, agents, or employees shall be deemed an officer, agent, employee,
joint venturer, partner or associate of the City for any purpose. The City shall have
no right to control or supervise or direct the manner or method by which the
Consultant shall perform its work and functions. However, the City shall retain the
right to administer this Agreement so as to verify that the Consultant is performing
its obligations in accordance with the terms and conditions thereof.
(b) This Agreement does not evidence a partnership or joint venture
between the Consultant and the City. The Consultant shall have no authority to
bind the City absent the City’s express written consent. Except to the extent
otherwise provided in this Agreement, the Consultant shall bear its own costs and
expenses in pursuit thereof.
(c) Because of its status as an independent contractor, the Consultant
and its officers, agents, and employees shall have absolutely no right to
employment rights and benefits available to the City employees. The Consultant
shall be solely liable and responsible for all payroll and tax withholding and for
providing to, or on behalf of, its employees all employee benefits including, without
limitation, health, welfare, and retirement benefits. In addition, together with its
other obligations under this Agreement, the Consultant shall be solely responsible,
indemnify, defend and save the City harmless from all matters relating to
employment and tax withholding for and payment of the Consultant’s employees,
including, without limitation, (i) compliance with Social Security and unemployment
insurance withholding, payment of workers’ compensation benefits, and all other
laws and regulations governing matters of employee withholding, taxes and
payment; and (ii) any claim of right or interest in the City employment benefits,
entitlements, programs and/or funds offered employees of the City whether arising
by reason of any common law, de facto, leased, or co -employee rights or other
theory. It is acknowledged that during the term of this Agreement, the Consultant
may be providing services to others unrelated to the City or to this Agreement.
14. Notices.
Any notice required or intended to be given to either party under the terms of this
Agreement shall be in writing and shall be deemed to be duly given if delivered personally,
transmitted by facsimile followed by telephone confirmation of receipt, or sent by United
States registered or certified mail, with postage prepaid, return receipt requested,
addressed to the party to which notice is to be given at the party ’s address set forth on
the signature page of this Agreement or at such other address as the parties may from
time to time designate by written notice. Notices served by United States mail in the
manner above described shall be deemed sufficiently served or given at the time of the
mailing thereof.
15. Binding.
Subject to Section 16 below, once this Agreement is signed by all parties, it shall be
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binding upon, and shall inure to the benefit of, all parties, and each parties ’ respective
heirs, successors, assigns, transferees, agents, servants, employees, and
representatives.
16. Assignment.
(a) This Agreement is personal to the Consultant and there shall be no
assignment by the Consultant of its rights or obligations under this Agreement
without the prior written approval of the City Manager or designee. Any attempted
assignment by the Consultant, its successors, or assigns, shall be null and void
unless approved in writing by the City Manager or designee.
(b) The Consultant hereby agrees not to assign the payment of any
monies due the Consultant from the City under the terms of this Agreement to any
other individual(s), corporation(s) or entity(ies). The City retains the right to pay
any and all monies due the Consultant directly to the Consultant.
17. Compliance With Law.
In providing the services required under this Agreement, the Consultant shall at all times
comply with all applicable laws of the United States, the State of California and the City,
and with all applicable regulations promulgated by federal, state, regional, or local
administrative and regulatory agencies, now in force and as they may be enacted, issued,
or amended during the term of this Agreement.
18. Waiver.
The waiver by either party of a breach by the other of any provision of this Agreement
shall not constitute a continuing waiver or a waiver of any subsequent breach of either
the same or a different provision of this Agreement. No provisions of this Agreement may
be waived unless in writing and signed by all parties to this Agreement. Waiver of any
one provision herein shall not be deemed to be a waiver of any other provision herein.
19. Governing Law and Venue.
This Agreement shall be governed by, and construed and enforced in accordance with,
the laws of the State of California, excluding, however, any conflict of laws rule which
would apply the law of another jurisdiction. Venue for purposes of the filing of any action
regarding the enforcement or interpretation of this Agreement and any rights and duties
hereunder shall be Fresno County, California.
20. Headings.
The section headings in this Agreement are for convenience and reference only and shall
not be construed or held in any way to explain, modify, or add to the interpretation or
meaning of the provisions of this Agreement.
21. Severability.
The provisions of this Agreement are severable. The invalidity, or unenforceability of any
one provision in this Agreement shall not affect the other provisions.
22. Interpretation.
The parties acknowledge that this Agreement in its final form is the result of the combined
CPD-S Eng. CSA, Long Form Total Fee – Contingency (10-2024)
Page 19 of 32
efforts of the parties and that, should any provision of this Agreement be found to be
ambiguous in any way, such ambiguity shall not be resolved by construing this Agreement
in favor of or against either party, but rather by construing the terms in accordance with
their generally accepted meaning.
23. Attorney's Fees.
If either party is required to commence any proceeding or legal action to enforce or
interpret any term, covenant or condition of this Agreement, the prevailing party in such
proceeding or action shall be entitled to recover from the other party its reasonable
attorney's fees and legal expenses.
24. Exhibits.
Each exhibit and attachment referenced in this Agreement is, by the reference,
incorporated into and made a part of this Agreement.
25. Precedence of Documents.
In the event of any conflict between the body of this Agreement and any exhibit or
attachment hereto, the terms and conditions of the body of this Agreement shall control
and take precedence over the terms and conditions expressed within the exhibit or
attachment. Furthermore, any terms or conditions contained within any exhibit or
attachment hereto which purport to modify the allocation of risk between the parties,
provided for within the body of this Agreement, shall be null and void.
26. Cumulative Remedies.
No remedy or election hereunder shall be deemed exclusive but shall, wherever possible,
be cumulative with all other remedies at law or in equity.
27. No Third-Party Beneficiaries.
The rights, interests, duties, and obligations defined within this Agreement are intended
for the specific parties hereto as identified in the preamble of this Agreement.
Notwithstanding anything stated to the contrary in this Agreement, it is not intended that
any rights or interests in this Agreement benefit or flow to the interest of any third parties.
28. Extent of Agreement.
Each party acknowledges that they have read and fully understand the contents of this
Agreement. This Agreement represents the entire and integrated agreement between
the parties with respect to the subject matter hereof and supersedes all prior negotiations,
representations, or agreements, either written or oral. This Agreement may be modified
only by written instrument duly authorized and executed by both the City and the
Consultant.
29. The City Manager, or designee, is hereby authorized and directed to
execute and implement this Agreement. The previous sentence is not intended to
delegate any authority to the City Manager to administer the Agreement, any delegation
of authority must be expressly included in the Agreement.
[SIGNATURES FOLLOW ON THE NEXT PAGE.]
IN WITNESS WHEREOF, the parties have executed this Agreement at Fresno , California, on the day and year first above written. CITY OF FRESNO, A California municipal corporation
By:-------------Nicholas Mascia, PE, Capital Projects Director Capital Projects Department
ATTEST: TODD STERMER, CMC City Clerk
By: ------------Deputy
No signature of City Attorney required. Standard Document #CPD-S Eng. CSA,
Long Form Total Fee-Contingency (10-
2024) has been used without modification, as ce�2the undrsigned.
By: 0-"�-----------=Isaac Camp�roject Manager Capital Projects Department
REVIE WED BY:��
Jon B artel, Pr6jectsAdministrator Capital Projects Department
Addresses: CITY: City of Fresno Attention:lsaac Campos, Project Manager 747 R Street, 2nd Floor Fresno, CA 93721 Phone: (559) 621-8657 E-mail: lsaac.campos@fresno.gov
Attachments:
Peters E ine • A Califo
Name: ___ D_a_v_id _P_e_te _r_s _____ _ Title: President (If corporation or LLC., Board Chair,
By: -P�re1�□�--ice
-A----'Pr���-"""-=-----
Name: She ryl Peters ------------Title: Secretary (If corporation or LLC., CFO, Treasurer, Secretary or Assistant Secretary)
Any Applicable Professional License: Number: C526B5
Name: David Peters Date of Issuance: 1994----'--'--'-'------
CONSUL TANT: Peters Engineering Group Attention: Will Washburn, Project Manager 862 Pollasky Ave Clovis, CA 93612 Phone: (559) 299-1544 ext. 114 E-mail: WWas hburn@petersengineering.com
CPD-S Eng. CSA, Long Form Total Fee -Contingency (10-2024)
Page 20 of 32
CPD-S Eng. CSA, Long Form Total Fee – Contingency (10-2024)
Page 21 of 32
1. Exhibit A - Scope of Services
2. Exhibit B - Insurance Requirements
3. Exhibit C - Conflict of Interest Disclosure Form
CPD-S Eng. CSA, Long Form Total Fee – Contingency (10-2024)
Page 22 of 32
EXHIBIT A
SCOPE OF SERVICES
Consultant Service Agreement between
City of Fresno (City) and Peters Engineering Group (Consultant)
Cesar Chavez Boulevard (formerly California Avenue) Enhancements from Fruit Avenue
to Pottle Avenue
Peters Engineering Group (CONSULTANT) will provide the City of Fresno (CITY) with
engineering services for the subject project as described herein. CONSULTANT’s services
will result in the preparation of plans, specifications, and estimate (PS&E) for the California
(Cesar Chavez) Enhancements from Fruit Avenue to MLK Jr. Boulevard. Bidding and
Construction Engineering Services will also be provided for the project. The project
will include the following design aspects:
•CONSULTANT will prepare traffic signal plans for the intersection of California (Cesar
Chavez) and Fruit. The intersection is currently stop controlled. Plans will also include a
realignment of Fruit Avenue south of the intersection to the east to match the existing
north side improvements. Coordination with overhead utility providers will be necessary
due to existing utility poles on the east side of Fruit Avenue south of California (Cesar
Chavez). Coordination with PG&E will be necessary to provide electrical service for
new lighting and signals. Traffic signal design would include video detection and high
visibility crosswalks.
•Design of a High Intensity Activated Crosswalk (HAWK) pedestrian signal on California
(Cesar Chavez) between Klette Avenue and Waterman Avenue near the Maud Avenue
intersection. Coordination with PG&E will be necessary to provide electrical service for
the new signal improvement. High visibility crosswalks will be included in the design.
•Design a Class I trail on the south side of California (Cesar Chavez) from Fanning Ditch
(Thorne Avenue) to Walnut Avenue. Design new curb and gutter as needed per City of
Fresno standards and coordinate with Fresno Metropolitan Flood Control District
(FMFCD) for master plan top of curb grades and flow patterns. Include trail lighting.
Coordination with PG&E will be necessary to provide electrical service for new lighting.
•Intersection realignment of Fresno Street and California (Cesar Chavez) (north side),
Tulare Street and California (Cesar Chavez) (north side), and Plumas Street and
California (Cesar Chavez) (south side) to provide improved sight distance and reduce
travel distance for bicycles and pedestrians. This “squaring up” of the intersections will
require coordination with CITY to determine acceptable geometry and coordination with
FMFCD for master plan top of curb data and flow directions. Existing street lighting
system may need to be modified to comply with updated geometry. Coordination for
potential undergrounding of overhead utilities will be determined based on the geometry
of the project. High visibility crosswalks will be included in the design.
•Existing pavement within California (Cesar Chavez) requires maintenance. Using
geotechnical data obtained from the accompanying CMAQ project, CONSULTANT will
coordinate with CITY to determine the areas that will require different levels of
pavement maintenance, which may include crack seal with Type II slurry, grind and
overlay of the existing pavement surface, or reconstruction of the existing pavement.
CPD-S Eng. CSA, Long Form Total Fee – Contingency (10-2024)
Page 23 of 32
New pavement areas will be designed and constructed with the accompanying CMAQ
project.
• Attend three (3) community meetings to discuss the project scope with the public.
Provide presentation materials including handouts, project plans, and contact information.
• ADA ramp designs will minimize potential ROW acquisition. Ramps will conform to
CITY Standards for slopes and horizontal dimensions.
• Replace limited portions of existing curb and gutter that have either been uplifted by tree
roots or have settled due to subgrade issues.
• CONSULTANT will prepare cover sheet, legal descriptions and exhibits for Right-Of-
Way (ROW) acquisition and deliver files to the CITY for use in acquiring ROW.
CONSULTANT anticipates 2 (two) properties are anticipated to provide ROW with this
project.
• Utility Coordination for all affected existing dry and wet utilities. A pothole exhibit will
be prepared by the CONSULTANT based on utility research. The exhibit will identify
existing utilities in horizontal locations only. CITY will use the exhibit to pothole the
project site and provide information to the CONSULTANT to resolve potential design
conflicts.
• Prepare Traffic Signal Modification Plans to update pedestrian push button locations and
install video detection systems. Separate push button posts may be required at some
intersections to achieve ADA compliance. High visibility crosswalks will be included in
the design.
• Coordinate with Fresno Irrigation District (FID) regarding existing District facilities at
the Thorne and California (Cesar Chavez) intersection. Existing facilities may need to be
relocated to achieve ADA compliance.
• Prepare striping and signage plans in accordance with CITY and Caltrans standards and
latest version of CA MUTCD. Design of Class IV Bicycle Lanes and Class II buffered
bike lanes in both the eastbound and the westbound direction will be part of the project.
Coordination with accompanying CMAQ project will be required. All striping within the
project area will be removed and replaced with the project. High visibility crosswalks
will be included in the design.
• Prepare Geometric Approval Drawing (GAD) for review prior to submittal of the 30%
plans.
• All topographic survey information, including current right of way and boundary of
parcels, will be provided by the CITY.
• A tracking spreadsheet for review comments will be prepared by CONSULTANT to
maintain status of comments and will be shared with CITY with each submittal.
The plan set is anticipated to consist of the following sheets: Cover Sheet, Legend and General
Notes, Cross Section Views, Intersection Plan View Sheets, Roadway Plan and Profile sheets for
the pavement widening and curb and gutter, Curb Ramp Detail Sheets, Pavement Delineation
and Signage Sheets, Construction Details, plans for a traffic signal at California (Cesar Chavez)
and Fruit, traffic signal modifications at California (Cesar Chavez) and Thorne and California
(Cesar Chavez) and Walnut, and HAWK Signal Plans and HAWK Signal Detail Sheets.
CPD-S Eng. CSA, Long Form Total Fee – Contingency (10-2024)
Page 24 of 32
CONSULTANT anticipates approximately 100 sheets for this plan set.
Notice will be given to the CONSULTANT if the CITY observes or otherwise becomes aware of
any development that affects the above design criteria.
WORK TASKS
The CONSULTANT will provide the following work tasks:
Part 1 Schematic Design Phase: Project Kick-Off/Field Review and 30% Plans
CONSULTANT shall meet with CITY project manager at the Capital Projects Department
offices prior to commencement of design. Important details to be discussed would include
delivery of the completed topographic and boundary survey AutoCAD files and limits of
proposed improvements. CONSULTANT will perform a field review to visually examine the
project area and to observe items shown in the topographic survey provided by the CITY.
CONSULTANT will prepare preliminary geometric exhibits for the intersections of California
(Cesar Chavez) and Plumas Street, California (Cesar Chavez) and Fresno Street, and California
(Cesar Chavez) and Tulare Street. These intersections were requested to be “squared up”.
CONSULTANT will work with CITY to prepare preliminary geometry that will provide
improved sight distance for vehicles and reduce crossing time for bicycles and pedestrians.
CONSULTANT will prepare traffic signal warrants for the Fruit Avenue and California (Cesar
Chavez) Street intersection. Manual traffic counts, including vehicle turning movements,
pedestrians, bicycles, and heavy vehicles, will be performed at the intersection of Fruit Avenue
and California (Cesar Chavez) Street between the hours of 7:00 a.m. and 9:00 a.m. on a weekday
morning and between the hours of 4:00 p.m. and 6:00 p.m. on a weekday afternoon. Twenty-
four-hour weekday traffic counts will be performed on each leg of the intersection on the same
day as the intersection counts. Consultant will perform intersection analyses to determine the
existing delay per vehicle. Consultant will determine which, if any, of the traffic signal warrants
presented in Chapter 4C of the most recent California Manual on Uniform Traffic Control
Devices (CMUTCD) are satisfied. Collisions records will be obtained from the Statewide
Integrated Traffic Records System (SWITRS). Critical speeds on California (Cesar Chavez)
Street will be assumed to be on the order of 35 miles per hour based on available data. The
results will be summarized in a memorandum presenting the traffic counts, the operational
analysis, and each CMUTCD warrant.
CONSULTANT will prepare HAWK signal warrants for California (Cesar Chavez) Street near
the Maud Avenue intersection. Manual traffic counts, including vehicle turning movements,
pedestrians, bicycles, and heavy vehicles, will be performed at the intersections of Klette Avenue/
California (Cesar Chavez) Street and Inyo Street / California (Cesar Chavez) Street between the
hours of 7:00 a.m. and 9:00 a.m. on a weekday morning and between the hours of 4:00 p.m. and
6:00 p.m. on a weekday afternoon. The purpose of counting the intersections is to assist with
identifying the optimal location for the crosswalk. Twenty-four-hour weekday traffic counts will
be performed on California (Cesar Chavez) Street between Klette Avenue and Inyo Street on the
same day as the intersection counts. Consultant will determine whether warrants for pedestrian
hybrid beacons (HAWK signals) as presented in Chapter 4F of the most recent California
Manual on Uniform Traffic Control Devices (CMUTCD) are satisfied. Critical speeds on
California (Cesar Chavez) Street will be assumed to be on the order of 35 miles per hour based
on available data. The results will be summarized in a memorandum presenting the traffic
counts, the operational analysis, and the CMUTCD warrant.
CPD-S Eng. CSA, Long Form Total Fee – Contingency (10-2024)
Page 25 of 32
CONSULTANT will prepare initial Traffic Signal Construction plans, Traffic Signal
Modification plans and HAWK signal plans and streetlight plans for coordination with CITY.
CONSULTANT will prepare 30% plans for review by CITY. Plans will include limits of road
reconstruction, typical cross sections, signals, and striping and signage. A digital copy of the
plans for the GAD and 30% submittal will be delivered to CITY for review. Plans will be
circulated by CITY to all responsible reviewing departments and agencies. CITY will provide
comments for CONSULTANT to review and address.
Part 2 Design Development Phase
CONSULTANT will prepare 60% plans, specifications and estimate for review by CITY and
other outside agencies as determined by the CITY. 60% plans will include cover sheet, typical
detail sheet, plan sheets, signals, and striping and signage sheets. Specifications shall consist of
bid item descriptions. A digital copy of the plans for the 60% PS&E will be delivered to CITY
for review. Hard copies of the plans can be provided upon request. Plans will be circulated by
CITY to all responsible reviewing departments and agencies. CITY will provide comments and
direction for CONSULTANT.
Part 3 Construction Document Phase
CONSULTANT will review CITY’s compiled review comments for the 60% plans. Based on
collaboration between CITY and CONSULTANT on review comments, CONSULTANT shall
prepare 90% plans, specifications, and estimate for review by CITY and other outside agencies
as determined by CITY. A digital copy of the plans for the 90% PS&E will be delivered to
CITY for review. Hard copies of the plans can be provided upon request. Plans will be
circulated by CITY to all responsible reviewing departments and agencies. CITY will provide
comments and direction for CONSULTANT.
CONSULTANT will review CITY’s compiled review comments for the 90% plans. Based on
collaboration between CITY and CONSULTANT on review comments, CONSULTANT shall
prepare 100% plans, specifications, and estimate for final review by CITY and other outside
agencies as determined by CITY. A digital copy of the plans for the 100% PS&E will be
delivered to CITY for review. Plans will be circulated by CITY to all responsible reviewing
departments and agencies. CITY will any provide comments to review and address for
CONSULTANT. CONSULTANT will deliver signed mylar copies of the plans for approval to
the CITY and other outside agencies as determined by CITY. CITY will prepare legal
descriptions and exhibits for areas identified for ROW acquisition during this phase.
Part 4 Bidding Phase
CONSULTANT will assist CITY during Bidding. CONSULTANT shall attend the pre-bid
meeting. At request of CITY, CONSULTANT shall review contractor submitted requests for
information (RFIs) and shall submit answers to CITY. CONSULTANT shall assist CITY in
preparation of information to be included in bid addendums.
CPD-S Eng. CSA, Long Form Total Fee – Contingency (10-2024)
Exhibit A
Page 26 of 32
Part 5 Contract Administration
CONSULTANT will assist CITY during Construction. CONSULTANT shall attend the pre-
construction meeting. At the request of CITY, CONSULTANT shall review non-routine
contractor submittals and non-routine contractor requests for information during the project that
requires specialized review by design staff. CONSULTANT shall make up to five (5) 1-hour
site visits during construction. Prepare As-Built plans based on information obtained from
contractor and CITY to reflect routine field changes that occurred during construction.
CPD-S Eng. CSA, Long Form Total Fee – Contingency (10-2024)
Exhibit B
Page 27 of 32
EXHIBIT B
INSURANCE REQUIREMENTS
Consultant Service Agreement between City of Fresno
(City) and Peters Engineering Group (Consultant)
California (Cesar Chavez) Enhancements
from Fruit Avenue to Martin Luther King Jr
Boulevard
MINIMUM SCOPE OF INSURANCE
Coverage shall be at least as broad as:
1. The most current version of Insurance Services Office (ISO) Commercial
General Liability Coverage Form CG 00 01, providing liability coverage arising out of your
business operations. The Commercial General Liability policy shall be written on an
occurrence form and shall provide coverage for “bodily injury,” “property damage” and
“personal and advertising injury” with coverage for premises and operations (including the
use of owned and non-owned equipment), products and completed operations, and
contractual liability (including, without limitation, indemnity obligations under the
Agreement) with limits of liability not less than those set forth under “Minimum Limits of
Insurance.”
2. The most current version of Commercial Auto Coverage Form CA 00 01,
providing liability coverage arising out of the ownership, maintenance or use of
automobiles in the course of your business operations. The Automobile Policy shall be
written on an occurrence form and shall provide coverage for all owned, hired, and non -
owned automobiles or other licensed vehicles (Code 1- Any Auto).
3. Workers’ Compensation insurance as required by the State of California
and Employer’s Liability Insurance.
4. Professional Liability (Errors and Omissions) insurance appropriate to the
Consultant’s profession.
MINIMUM LIMITS OF INSURANCE
The Consultant, or any party the Consultant subcontracts with, shall maintain limits of
liability of not less than those set forth below. However, insurance limits available to the
City, its officers, officials, employees, agents, and volunteers as additio nal insureds, shall
be the greater of the minimum limits specified herein or the full limit of any insurance
proceeds available to the named insured:
1. COMMERCIAL GENERAL LIABILITY:
(i) $1,000,000 per occurrence for bodily injury and property damage;
(ii) $1,000,000 per occurrence for personal and advertising injury;
(iii) $2,000,000 aggregate for products and completed operations; and,
(iv) $2,000,000 general aggregate applying separately to the work
performed under the Agreement.
2. COMMERCIAL AUTOMOBILE LIABILITY:
CPD-S Eng. CSA, Long Form Total Fee – Contingency (10-2024)
Exhibit B
Page 28 of 32
$1,000,000 per accident for bodily injury and property damage.
3. WORKERS’ COMPENSATION INSURANCE as required by the State of
California with statutory limits.
4. EMPLOYER’S LIABILITY:
(i) $1,000,000 each accident for bodily injury;
(ii) $1,000,000 disease each employee; and,
(iii) $1,000,000 disease policy limit.
5. PROFESSIONAL LIABILITY (Errors and Omissions):
(i) $1,000,000 per claim/occurrence; and,
(ii) $2,000,000 policy aggregate.
UMBRELLA OR EXCESS INSURANCE
In the event the Consultant purchases an Umbrella or Excess insurance policy(ies) to
meet the “Minimum Limits of Insurance,” this insurance policy(ies) shall “follow form” and
afford no less coverage than the primary insurance policy(ies). In addition, such Umbrella
or Excess insurance policy(ies) shall also apply on a primary and non -contributory basis
for the benefit of the City, its officers, officials, employees, agents, and volunteers.
DEDUCTIBLES AND SELF-INSURED RETENTIONS
The Consultant shall be responsible for payment of any deductibles contained in any
insurance policy(ies) required herein and the Consultant shall also be responsible for
payment of any self-insured retentions.
OTHER INSURANCE PROVISIONS/ENDORSEMENTS
The General Liability and Automobile Liability insurance policies are to contain, or be
endorsed to contain, the following provisions:
1. The City, its officers, officials, employees, agents, and volunteers are to be
covered as additional insureds. The Consultant shall establish additional insured status
for the City and for all ongoing and completed operations by use of endorsements
providing additional insured status as broad as that contained in ISO Form CG 20 10 11
85 or CG 20 10 04 13.
2. The coverage shall contain no special limitations on the scope of protection
afforded to the City, its officers, officials, employees, agents, and volunteers. Any
available insurance proceeds in excess of the specified minimum limits and coverage
shall be available to the Additional Insured.
3. The Consultant’s insurance coverage shall be primary insurance with
respect to the City, its officers, officials, employees, agents, and volunteers. Any
insurance or self-insurance maintained by the City, its officers, officials, employees,
agents, and volunteers shall be excess of the Consultant’s insurance and shall not
contribute with it. The Consultant shall establish primary and non -contributory status on
the General Liability policy by use of ISO Form CG 20 01 04 13, or by an executed
endorsement that provides primary and non-contributory status as broad as that
contained in ISO Form CG 20 01 04 13.
CPD-S Eng. CSA, Long Form Total Fee – Contingency (10-2024)
Exhibit B
Page 29 of 32
4. The Workers’ Compensation insurance policy is to contain, or be endorsed
to contain, the following provision: the Consultant and its insurer shall waive any right of
subrogation against the City, its officers, officials, employees, agents, and volunteer s.
5. All policies of insurance required herein shall be endorsed to provide that
the coverage shall not be cancelled, non-renewed, reduced in coverage or in limits except
after thirty (30) calendar days written notice by certified mail, return receipt reques ted,
has been given to the City. The Consultant is also responsible for providing written notice
to the City under the same terms and conditions. Upon issuance by the insurer, broker,
or agent of a notice of cancellation, non-renewal, or reduction in coverage or in limits, the
Consultant shall furnish the City with a new certificate and applicable endorsements for
such policy(ies). In the event any policy is due to expire during the work to be performed
for the City, the Consultant shall provide a new certificate, and applicable endorsements,
evidencing renewal of such policy not less than fifteen (15) calendar days prior to the
expiration date of the expiring policy.
6. Should any of the required policies provide that the defense costs are paid
within the Limits of Liability, thereby reducing the available limits by any defense costs,
then the requirement for the Limits of Liability of these polices will be twice the a bove
stated limits.
7. The fact that insurance is obtained by the Consultant shall not be deemed
to release or diminish the liability of the Consultant, including, without limitation, liability
under the indemnity provisions of this Agreement. The policy limits do not act as a
limitation upon the amount of indemnification to be provided by the Consultant. Approval
or purchase of any insurance contracts or policies shall in no way relieve from liability nor
limit the liability of the Consultant, its principals, officers, agents , employees, persons
under the supervision of the Consultant, vendors, suppliers, invitees, consultants, sub -
consultants, subcontractors, or anyone employed directly or indirectly by any of them.
CLAIMS-MADE POLICIES
If the Professional Liability (Errors and Omissions) insurance policy is written on a claims -
made form:
1. The retroactive date must be shown, and must be before the effective date
of the Agreement or the commencement of work by the Consultant.
2. Insurance must be maintained and evidence of insurance must be provided
for at least five (5) years after completion of the Agreement work or termination of the
Agreement, whichever occurs first, or, in the alternative, the policy shall be endorsed to
provide not less than a 5-year discovery period.
3. If coverage is canceled or non-renewed, and not replaced with another
claims-made policy form with a retroactive date prior to the effective date of the
Agreement or the commencement of work by the Consultant, the Consultant must
purchase “extended reporting” coverage for a minimum of five (5) years completion of the
Agreement work or termination of the Agreement, whichever occurs first.
4. A copy of the claims reporting requirements must be submitted to the City
for review.
CPD-S Eng. CSA, Long Form Total Fee – Contingency (10-2024)
Exhibit B
Page 30 of 32
5. These requirements shall survive expiration or termination of the
Agreement.
VERIFICATION OF COVERAGE
The Consultant shall furnish the City with all certificate(s) and applicable endorsements
effecting coverage required hereunder. All certificates and applicable endorsements are
to be received and approved by the City’s Risk Manager or designee prior to th e City’s
execution of the Agreement and before work commences. All non-ISO endorsements
amending policy coverage shall be executed by a licensed and authorized agent or
broker. Upon request of the City, the Consultant shall immediately furnish with a complete
copy of any insurance policy required under this Agreement, including all endorsements,
with said copy certified by the underwriter to be a true and correct copy of the original
policy. This requirement shall survive expiration or termination of this A greement.
SUBCONTRACTORS
If the Consultant subcontracts any or all of the services to be performed under this
Agreement, the Consultant shall require, at the discretion of the City Risk Manager or
designee, subcontractor(s) to enter into a separate side agreement with the City to
provide required indemnification and insurance protection. Any required side
agreement(s) and associated insurance documents for the subcontractor must be
reviewed and preapproved by the City’s Risk Manager or designee. If no side agreement
is required, the Consultant shall require and verify that subcontractors maintain insurance
meeting all the requirements stated herein and the Consultant shall ensure that the City,
its officers, officials, employees, agents, and volunteers are additional insureds. The
subcontractors' certificates and endorsements shall be on file with the Consultant, and
the City, prior to commencement of any work by the subcontractor.
1
2
3
4
5
6
EXHIBIT C
DISCLOSURE OF CONFLICT OF INTEREST
Cesar Chavez Boulevard (formerly California
Avenue) Enhancements from Fruit Avenue to
Pottle Avenue
Are you currently in litigation with the City of Fresno or any
of its agents?
Do you represent any firm, organization, or person who
is in litigation with the City of Fresno?
Do you currently represent or perform work for any clients who
do business with the City of Fresno?
Are you or any of your principals, managers, or professionals,
owners or investors in a business which does business with
the City of Fresno, or in a business which is in litigation with
the City of Fresno?
Are you or any of your principals, managers, or professionals,
related by blood or marriage to any City of Fresno employee
who has any significant role in the subject matter of this
service?
Do you or any of your subcontractors have, or expect to have,
any interest, direct or indirect, in any other contract in
connection with this Project?
YES* NO
□!XI
□
□
□
□
□ !XI
*If the answer to any question is yes, please explain in full below. £
Explanation:
/'I /'I II ,½;1;i fr 4-1t �Sigri �re -
January 8, 2025
Date
David Peters
Name
Peters Engineering Group
Company
862 Pollasky Avenue
Address
Clovis, CA 93612
City, State, Zip
CPD-S Eng. CSA, Long Form Total Fee -Contingency (10-2024)
Exhibit C
Page 31 of 32
CPD-S Eng. CSA, Long Form Total Fee – Contingency (10-2024)
Exhibit C
Page 32 of 32
☐ Additional page(s) attached.
Whites Bridge
MapleBrawleyHerndon
Bullard
Shaw
ClovisFowlerTemperanceWestPalmClovisFowlerTemperanceDe WolfShields
McKinley
Belmont
ChestnutPeachAmerican
CedarGrantlandHayesElmEastMarksWestWalnutCorneliaNorth
California
Jensen
Ashlan GrantlandHayesCorneliaBrawleyMarksShaw
Bullard
Herndon
Nees
De WolfShields
McKinley
Belmont
California
Jensen
North
Kings Canyon
AshlanPeachBehymer
Copper
Shepherd
NeesBlackstoneFirstCedarChestnutGarfieldBryanPolkBlytheValentineVan NessFruitMaroaFresnoMillbrookMapleWillowDakota
Clinton
Olive
Gettysburg
Barstow
Sierra
Alluvial
Nielsen
Kearney
Muscat
Annadale
Church
WillowMinnewawaMalaga
OrangeBryanSunnysideArmstrongLocanFigCherryHughesFruitPolkValentineBlytheAlluvial
Sierra
Barstow
Perrin
SunnysideArmstrongLocanClinton
Olive
Tulare
Butler
Church
Annadale
DakotaMinnewawaInternational
Teague
CAPITAL PROJECTS
DEPARTMENT
N
0 1 2 3
Miles
VICINITY MAP
Project Area
District 3
City Limits
Project Limits
Legend
Cesar Chavez Ave
Enhancements Fruit to Pottle
Cesar Chavez Blvd
Enhancements Fruit Ave to
Pottle Ave (Project 2)
Project ID: PW01074
Council District: 3
City of Fresno
Staff Report
2600 Fresno Street
Fresno, CA 93721
www.fresno.gov
File #:ID 25-91 Agenda Date:1/30/2025 Agenda #:
2.-G.
REPORT TO THE CITY COUNCIL
FROM:NICHOLAS D. MASCIA, PE, Assistant City Manager
Interim Director - Capital Projects Department
BROCK D. BUCHE, PE, PLS, Director
Department of Public Utilities
BY:FRANCISCO V. MAGOS II, PE, Assistant Director
Capital Projects Department, Utilities and On-Site Project Management Division
SAMUEL NADORES, Licensed Professional Engineer
Capital Projects Department, Utilities and On-Site Project Management Division
SUBJECT
Approve the Second Amendment to the Consultant Services Agreement with Pcubed Associates, Inc.
of Glendale, California, to increase the total contract by an amount not to exceed $184,875, paid on a
time and materials basis for a revised total contract amount not to exceed $302,175, with a
contingency amount not to exceed $11,730; and to extend the term of the Agreement to June 30,
2026, for the Forensic Investigation of Structural Components at the Fresno-Clovis Regional
Wastewater Reclamation Facility Project. (Council District 3)
RECOMMENDATION
Staff recommends that City Council approve the Second Amendment to the Consultant Services
Agreement (Agreement) with Pcubed Associates, Inc. (Consultant), to increase the total contract
amount by an amount not to exceed $184,875, for a revised total contract amount not to exceed
$302,175, with a contingency amount not to exceed $11,730, to expand the Consultant’s scope of
services; and to extend the term of the Agreement from December 31, 2024, to June 30, 2026, for
the Forensic Investigation of Structural Components at the Fresno-Clovis Regional Wastewater
Reclamation Facility (RWRF) Project (Project); and authorize the Capital Projects Interim Director or
designee to sign and execute all documents on behalf of the City of Fresno (City).
EXECUTIVE SUMMARY
On June 21, 2021, the City approved a Consultant Services Agreement with Pcubed Associates, Inc.
for structural repairs needed at the RWRF Headworks Building. The Agreement included a forensic
investigation of structural degradation, recommendation and prioritization of repairs, and preparation
of construction documents for identified repairs. The scope of work also included the construction of
repairs for the Phase 1, Highest Priority structural repairs identified during the forensic investigation.
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01-30-2025
MA/AP 6-0
DISTRICT 5 (VACANT) ABSENT
APPROVED ON CONSENT
File #:ID 25-91 Agenda Date:1/30/2025 Agenda #:
2.-G.
repairs for the Phase 1,Highest Priority structural repairs identified during the forensic investigation.
The First Amendment extended the term of the Agreement with no impact to project cost.
Staff now recommends approval of the Second Amendment to the Agreement with Pcubed
Associates,Inc.to expand the scope of services to include assessment of current conditions and
development of construction documents for the Phase-2,Medium Priority structural repairs needed at
the Headworks Building;and to provide additional structural assessments at the B-Side Aeration
Basin and Secondary Sedimentation Basins to address cracking issues.The Second Amendment will
also extend the term of the Agreement to allow time for completion of the additional services.The
Second Amendment to the Agreement will be funded utilizing appropriations included in the Fiscal
Year 2025 Capital Improvement Budget within the Wastewater Management Division’s Sewer
Enterprise Fund.
BACKGROUND
The Headworks Building at the RWRF houses the preliminary treatment processes at the wastewater
treatment plant.Significant structural degradations have been noted at the concrete staircase
structure at the south side of the building and at various locations around the perimeter walls of the
building.Other areas of concern include cracks and concrete spalling at the grit pump and
mezzanine rooms including leak stains observed along the walls of the pump room.If left
unaddressed,there will be continued degradation of the structural integrity of the Headworks Building
which ultimately could have significant negative impacts on facility operations and treatment
capacities.
To identify and implement the repairs necessary to address the degradation issues and improve
structural integrity,the City entered into a Consultant Services Agreement with Pcubed Associates,
Inc.,dated June 21,2021,for a total contract amount not to exceed $117,300,paid on a time and
materials basis,with a contingency amount not to exceed $11,730.The scope of work originally
included providing a forensic investigation of structural degradation,recommendation and
prioritization of repairs,and construction documents for repairs needed at the Headworks Building at
the RWRF.The scope of work also included the construction of repairs for the Phase 1,Highest
Priority structural repairs identified during the forensic investigation.
On July 25,2023,the First Amendment to the Agreement extended the term of the Agreement to
December 31, 2024, to allow for additional time needed for structural remediations.
New cracking issues and structural degradation have been observed that were not present,or at
least not visible,during the assessment for Phase 1.Some of these new issues were discovered
during the implementation of Phase-1 repairs and rehabilitation.This includes areas under the grit
basin and bar screen areas at the Headworks Building.Similar issues of cracking and spalling
concrete walls were discovered at the B-Side Aeration Basin and Secondary Sedimentation Basins.
These issues will need to be investigated and assessed in order to determine the extent of
degradation and develop repair recommendations that will maintain structural integrity and avoid
operational disruption to the essential operations at the RWRF.
Staff now recommends approval of the Second Amendment to the Agreement to increase the total
contract by an amount not to exceed $184,875,paid on a time and materials basis,increasing the
total contract to an amount not to exceed $302,175 paid on a time and materials basis,and a
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File #:ID 25-91 Agenda Date:1/30/2025 Agenda #:
2.-G.
total contract to an amount not to exceed $302,175 paid on a time and materials basis,and a
contingency amount not to exceed $11,730;and authorization of the Capital Projects Interim Director
or designee to sign the Second Amendment on behalf of the City.This Second Amendment will
expand the scope of services to include review of the current conditions and development of
construction documents for the Phase-2,Medium Priority structural repairs needed at the Headworks
Building;and provide additional structural assessments at the B-Side Aeration Basin and Secondary
Sedimentation Basins to address cracking issues.The Second Amendment will also extend the term
of the Agreement from December 31,2024,to June 30,2026,to allow time for completion of the
additional services.The Second Amendment to the Agreement will be funded utilizing appropriations
included in the Fiscal Year 2025 Capital Improvement Budget within the Wastewater Management
Division’s Sewer Enterprise Fund.
The City Attorney’s Office has reviewed and approved the proposed amendment as to form.
ENVIRONMENTAL FINDINGS
By the definition of the California Environmental Quality Act (CEQA)Guidelines Section 15378,the
amendment of this consultant services agreement for the design services does not qualify as a
“project” for the purposes of CEQA.
LOCAL PREFERENCE
Local preference does not apply to this action because this is an amendment to an existing
consultant services agreement.
FISCAL IMPACT
The proposed Project is located in Council District 3 and has no impact to the General Fund.Funding
for this Project is included in the Fiscal Year 2025 Capital Improvement Budget within the Wastewater
Management Division’s Sewer Enterprise Fund.
Attachments:
Second Amendment to Agreement
First Amendment to Agreement
Original Consultant Agreement
Vicinity Map
Location Map
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SECOND AMENDMENT TO AGREEMENT
THIS SECOND AMENDMENT TO AGREEMENT (Amendment) made and entered into as of
this 31st day of December 2024, amends the Agreement entered into between the CITY OF
FRESNO, a California municipal corporation (City), and PCUBED ASSOCIATES, INC., a
California corporation (Consultant).
RECITALS
WHEREAS, the City and the Consultant entered into an agreement on June 21, 2021,
(Agreement) to provide professional engineering services for the Forensic Investigation of
Structural Components at the Fresno-Clovis Regional Wastewater Reclamation Facility (Project)
for a total fee not to exceed $117,300, paid on a time and material basis and a contingency
amount not to exceed $11,730; and
WHEREAS, the City and the Consultant entered into the First Amendment to the
Agreement on July 25, 2023, to extend the term of the agreement to December 31, 2024, at no
additional cost; and
WHEREAS, additional engineering services have become necessary to prevent further
degradation at the Headworks Building, B-side aeration basins, and secondary sedimentation
basins; and
WHEREAS, the City and the Consultant now desire to enter into this Second Amendment
to modify the Agreement to increase the scope of work and increase monetary consideration for
a fee not to exceed $184,875, paid on a time and materials basis in accordance with the updated
schedule of fees contained in Attachment A attached hereto, increasing the total contract to an
amount not to exceed $302,175 with a contingency amount not to exceed $11,730 and extend
the term of the Agreement to June 30, 2026.
AGREEMENT
NOW, THEREFORE, in consideration of the above recitals, which recitals are contractual
in nature, the mutual promises herein contained, and for other good and valuable consideration
hereby acknowledged, the parties agree that the Agreement be amended as follows:
1. Consultant shall provide additional services as described in Attachment A,
attached hereto and incorporated herein by reference.
2. Such additional services shall be completed by June 30, 2026, following execution of
this Amendment by both parties.
3. Consultant’s sole compensation for satisfactory performance of all services
required or rendered pursuant to this Amendment shall be an amount not to exceed $184,875,
paid on a time and materials basis.
4. In the event of any conflict between the body of this Amendment and any exhibit
or attachment hereto, the terms and conditions of the body of this Amendment shall control and
take precedence over the terms and conditions expressed within the exhibit or attachment.
Furthermore, any terms or conditions contained within any exhibit or attachment hereto which
purport to modify the allocation of risk between the parties, provided for within the body of this
Amendment, shall be null and void.
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5. Except as otherwise provided herein, the Agreement entered into by City and
Consultant, dated June 21, 2021, remains in full force and effect.
[Signatures follow on the next page.]
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Attachment A
ADDITIONAL SCOPE OF SERVICES
Consultant Service Second Amendment to Agreement between City of Fresno (City) and
Pcubed Associates, Inc. (Consultant)
SCOPE OF WORK
Additional scope of work includes the following tasks: (1) review of the current conditions,
development of construction documents, and bidding assistance for Phase-2 repairs and
rehabilitation at the Headworks Building; and (2) provide a structural assessment to address
cracking issues observed at the B-side aeration basins and secondary sedimentation basins. The
assessment will include basins built during the 68 and 80 MGD expansion projects.
TASK 1 – REPAIRS OF STRUCTURAL COMPONENTS AT THE RWRF HEADWORKS
BUILDING- PHASE 2
PHASE I – Project Management
1. The Consultant will meet with the City and stakeholders to develop a preliminary scope and
budget for the project.
2. The Consultant will conduct bi-weekly design calls with the City and stakeholders to update
the progress of the design and get input (4 calls expected).
3. Includes 20 hours allowance to cover additional services beyond the defined deliverables
throughout the project. These services include items such as answering questions, e-mails,
resolving billing questions/providing additional details, etc.
PHASE II – Construction Documents
1. The Consultant will conduct a 2-day field review of the facility in order to document additional
deterioration and document all of the repair item locations for the 2025 budget.
2. The Consultant will compile the repair quantities and work with the stakeholders to finalize the
2025 project budget.
3. The Consultant will develop 50% construction documents that consist of plans, repair
quantities and budget. The contract documents will be provided to the owner for review at 50% to
finalize the 2025 repair program.
4. The Consultant will incorporate the comments into the 90% construction documents.
Additionally, the Consultant will develop technical specifications for the repair project. The
contract documents will be provided to the City for review at 90%.
5. The Consultant will incorporate the City’s review comments and work with City staff to
incorporate the front-end requirements and bid tabulation into the final contract documents.
6. The Consultant will issue the final contract documents to the City for public bidding.
PHASE III – Bidding Assistance
1. The Consultant will conduct a pre-bid meeting along with City staff and review bid items, work
extent and site limitations with the bidders.
2. The Consultant will respond to requests for information (RFI) and prepare addenda as
necessary.
TASK 2 – CLARIFIER ASSESSMENT
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The following Scope of Services provides a phased breakdown of the proposed work plan for the
condition assessment of the B-side aeration basins and secondary sedimentation basins including
those built during the 68 and 80 MGD expansion projects (1992 and 1996 respectively). For the
purpose of the assessment, the Consultant will review 2 aeration and 2 clarifier basins (one from
each phase of construction). The results will be extrapolated to the other basins. Only one aeration
basin and one clarifier basin will be emptied at one time (i.e. 2 deployments would be needed in
order to complete the assessment).
PHASE I – Project Management
1. The consultant will meet with City to review project objectives and history and confirm the
project scope and budget.
2. The consultant will conduct bi-weekly design calls with all stakeholders to update the progress
of the design and receive input (4 calls expected).
3. An allowance of 20 hours is included in the scope to review and compile the existing drawings,
specifications and previous repair documents. The item also includes additional services beyond
the defined deliverables throughout the project. These services include items such as answering
questions, e-mails, resolving billing questions/providing additional details etc.
PHASE II – Field Assessment
1. The consultant will conduct a visual assessment of the basin structure and adjacent structures
to document the current physical condition of structural and waterproofing elements. Field work
will be conducted in 2 phases with each phase requiring 2 days in the field:
a) Typical concrete elements including floors, columns, beams, walls and other structural
elements. The visual review will document noticeable distress such as cracks, leaks,
spalls, joint deterioration and other similar adverse conditions.
b) Other elements that are noted during the field evaluation.
The field evaluation will include field-testing, material testing and non-destructive evaluation of
select concrete members. The field testing and visual review will be used to develop viable repair
approaches and alternatives by the Consultant. The following field tests are anticipated for the
testing program:
c) Acoustic sounding of select elements to identify delaminated areas in columns, beams
and walls.
d) GPR survey of reinforced concrete floor slabs at selected locations in each structure to
confirm the typical depth of reinforcement and concrete cover.
e) Half-cell testing to determine the corrosion potential of the concrete in the walls area that
show signs of corrosion related damage and cracking (3 locations in each deployment).
Half Cell Testing provides additional data that will help with the repair recommendations.
f) Cores will be extracted from the walls at select locations to understand the condition and
composition of the existing concrete (planned to extract 7-8 cores for each phase). These
will be sent to an independent laboratory for testing. The following tests are anticipated
and included in the laboratory costs.
I. Sulphate tests 2 cores – 4 depths (0”, 1.5”, 3”, 4.5”,6”) Total 8 tests
II. pH testing of 4 cores - 4 depths (0”, 1.5”, 3”, 4.5”,6”) Total 16 tests
III. Petrographic Testing of Cores 2-3 cores
IV. Compressive Strength Testing 6 cores
2. The consultant will notify the City of items in need of immediate repairs required for the
continued safe use of the structure(s), if there is any.
3. The Consultant will compile and analyze field evaluation data and finalize the quantities of
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work.
4.The Consultant will generate repair options, recommendations, and opinions of probable
costs.
5.Based on the condition assessment, the Consultant will prepare a report that contains an
executive summary, observations, including photographs depicting of the areas observed during
the review, results of materials testing and a discussion of the long-term implications, discussion
of observed conditions and conceptual repair options, and recommendations for repairs.
COMPENSATION
Pcubed Associates, Inc., proposes to complete the Second Amendment scope of services on a
time and materials basis, for a total fee not to exceed the values below:
Second Amendment Compensation
Task I - Headworks Building Phase II Repairs $94,125.00
Task II - Clarifier Assessment $90,750.00
TOTAL PROFESSIONAL SERVICE FEE $184,875.00
First Amendment Compensation
Professional services fee per First Amendment (time extension only) $0,000.00
TOTAL PROFESSIONAL SERVICE FEE $0,000.00
Original Contract Amount
Professional services fee per original contract $117,300.00
TOTAL PROFESSIONAL SERVICE FEE $117,300.00
TOTAL AMENDED CONTRACT AMOUNT: $302,175.00
With a remaining contingency
amount not to exceed $11,730.00
SCHEDULE OF FEES
Pcubed Associates 2025 Billing Rates
Standard Hourly Labor Rates Designation
Principal $300.00
Principal Consultant $300.00
Senior Consultant $250.00
Project Engineer $235.00
Senior Engineer $210.00
Engineer $190.00
CAD Drafter $150.00
Technician/Intern $145.00
Project Accountant $125.00
Administrative Assistant $125.00
SCHEDULE
Project Completion June 30, 2026
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FIRST AMENDMENT TO AGREEMENT
THIS FIRST AMENDMENT TO AGREEMENT (Amendment) made and entered
into as of this 25th day of July 2023, (Effective Date) amends the Agreement entered into
between the CITY OF FRESNO, a California municipal corporation (City), and PCUBED
ASSOCIATES INCORPORATED, a California Corporation (Consultant).
RECITALS
WHEREAS, City and Consultant entered into an agreement, dated June 21, 2021
(Agreement) to provide professional engineering services for Forensic Investigation of
Structural Components at Fresno-Clovis Regional Wastewater Reclamation Facility for a
total fee not to exceed $117,300, and a contingency amount not to exceed $11,730; and
WHEREAS, the City and the Consultant desire to extend the Agreement to
December 31, 2024, to retain the Consultant’s services through project completion; and
WHEREAS, with entry into this Amendment, Consultant agrees that Consultant
has no claim, demands, or disputes against City.
AGREEMENT
NOW, THEREFORE, the City and the Consultant agree that the aforesaid
Agreement be amended as follows:
1. Section 2 of the Agreement is amended in its entirety to read as follows:
“2. Term of Agreement and Time for Performance. This Agreement
shall be effective from the date first set forth above and shall continue in full
force and effect through the earlier of complete rendition of the services
hereunder or December 31, 2024, subject to any earlier termination in
accordance with this Agreement. The services of Consultant as described
in Exhibit A are to commence upon CITY'S issuance of a written "Notice to
Proceed." Work shall be undertaken and completed in a sequence assuring
expeditious completion, but in any event, all such services shall be
completed within 1290 consecutive calendar days from such authorization
to proceed.”
2. This Amendment shall have an Effective Date of July 25, 2023.
3. Except as otherwise provided herein, the Agreement entered into by the
City and the Consultant on June 21, 2021, remain in full force and effect.
[SIGNATURES FOLLOW ON THE NEXT PAGE.]
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IN WITNESS WHEREOF, the CITY and the Consultant have executed this
Amendment at Fresno, California, the day and year first above written.
CITY OF FRESNO,
A municipal corporation
By:
Brock D. Buche, PE, PLS, Director
Department of Public Utilities
APPROVED AS TO FORM:
ANDREW JANZ
City Attorney
By:
Brandon M. Collet Date
Supervising Deputy City Attorney
ATTEST:
TODD STERMER, CMC
City Clerk
By:
Date
Deputy
PCUBED ASSOCIATES, INC.,
A California corporation
By:
Name:
Title:
(If corporation or LLC., Board Chair,
Pres. Or Vice Pres.)
By:
Name:
Title:
(If corporation or LLC., CFO, Treasurer,
Secretary or Assistant Secretary)
DPU-S 8.3 /02-2021
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AGREEMENT
CITY OF FRESNO, CALIFORNIA
CONSULTANT SERVICES
THIS AGREEMENT is made and entered into effective _____________________,
by and between the CITY OF FRESNO, a California municipal corporation (City), and
PCUBED ASSOCIATES INCORPORATED, a California corporation (Consultant).
RECITALS
WHEREAS, the City desires to obtain professional engineering services for
Forensic Investigation of Structural Components at Fresno-Clovis Regional Wastewater
Reclamation Facility (Project); and
WHEREAS, the Consultant is engaged in the business of furnishing
services as a Professional Engineer and hereby represents that it desires to and is
professionally and legally capable of performing the services called for by this Agreement;
and
WHEREAS, the Consultant acknowledges that this Agreement is subject to
the requirements of Fresno Municipal Code Section 4-107 and Administrative Order No.
6-19; and
WHEREAS, this Agreement will be administered for the City by its Director
of Public Utilities (Director) or designee.
AGREEMENT
NOW, THEREFORE, in consideration of the foregoing and of the
covenants, conditions, and promises hereinafter contained to be kept and performed by
the respective parties, it is mutually agreed as follows:
1. Scope of Services. The Consultant shall perform to the satisfaction
of the City the services described in Exhibit A, including all work incidental to, or
necessary to perform, such services even though not specifically described in Exhibit A.
2. Term of Agreement and Time for Performance. This Agreement
shall be effective from the date first set forth above and shall continue in full force and
effect through the earlier of complete rendition of the services hereunder or July 25, 2023,
subject to any earlier termination in accordance with this Agreement. The services of the
Consultant as described in Exhibit A are to commence upon the City’s issuance of a
written “Notice to Proceed.” Work shall be undertaken and completed in a sequence
assuring expeditious completion, but in any event, all such services shall be completed
within seven hundred sixty nine (769) consecutive calendar days from such authorization
to proceed.
3. Compensation.
(a) The Consultant’s sole compensation for satisfactory performance of
all services required or rendered pursuant to this Agreement shall be a total fee not to
exceed One Hundred Seventeen Thousand Three Hundred Dollars ($117,300), paid on
a time and materials basis in accordance with the schedule of fees contained in Exhibit
A, and a contingency amount not to exceed Eleven Thousand Seven Hundred Thirty
-'"
DPU-S 8.3 /02-2021
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($11,730) for any additional work rendered pursuant to Subsection (c) below and
authorized in writing by the Director.
(b) Detailed statements shall be rendered monthly and will be payable
in the normal course of City business. The City shall not be obligated to reimburse any
expense for which it has not received a detailed invoice with applicable copies of
representative and identifiable receipts or records substantiating such expense.
(c) The parties may modify this Agreement to increase or decrease the
scope of services or provide for the rendition of services not required by this Agreement,
which modification shall include an adjustment to the Consultant’s compensation. Any
change in the scope of services must be made by written amendment to the Agreement
signed by an authorized representative for each party. The Consultant shall not be
entitled to any additional compensation if services are performed prior to a signed written
amendment.
4. Termination, Remedies and Force Majeure.
(a) This Agreement shall terminate without any liability of the City to the
Consultant upon the earlier of: (i) the Consultant’s filing for protection under the federal
bankruptcy laws, or any bankruptcy petition or petition for receiver commenced by a third
party against the Consultant; (ii) seven calendar days prior written notice with or without
cause by the City to the Consultant; (iii) the City’s non-appropriation of funds sufficient to
meet its obligations hereunder during any City fiscal year of this Agreement, or insufficient
funding for the Project; or (iv) expiration of this Agreement.
(b) Immediately upon any termination or expiration of this Agreement,
the Consultant shall (i) immediately stop all work hereunder; (ii) immediately cause any
and all of its subcontractors to cease work; and (iii) return to the City any and all unearned
payments and all properties and materials in the possession of the Consultant that are
owned by the City. Subject to the terms of this Agreement, the Consultant shall be paid
compensation for services satisfactorily performed prior to the effective date of
termination. The Consultant shall not be paid for any work or services performed or costs
incurred which reasonably could have been avoided.
(c) In the event of termination due to failure of the Consultant to
satisfactorily perform in accordance with the terms of this Agreement, the City may
withhold an amount that would otherwise be payable as an offset to, but not in excess of,
the City’s damages caused by such failure. In no event shall any payment by the City
pursuant to this Agreement constitute a waiver by the City of any breach of this Agreement
which may then exist on the part of the Consultant, nor shall such payment impair or
prejudice any remedy available to the City with respect to the breach.
(d) Upon any breach of this Agreement by the Consultant, the City may
(i) exercise any right, remedy (in contract, law or equity), or privilege which may be
available to it under applicable laws of the State of California or any other applicable law;
(ii) proceed by appropriate court action to enforce the terms of the Agreement; and/or (iii)
recover all direct, indirect, consequential, economic and incidental damages for the
breach of the Agreement. If it is determined that the City improperly terminated this
Agreement for default, such termination shall be deemed a termination for convenience.
DPU-S 8.3 /02-2021
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(e) The Consultant shall provide the City with adequate written
assurances of future performance, upon Director’s request, in the event the Consultant
fails to comply with any terms or conditions of this Agreement.
(f) The Consultant shall be liable for default unless nonperformance is
caused by an occurrence beyond the reasonable control of the Consultant and without its
fault or negligence such as, acts of God or the public enemy, acts of the City in its
contractual capacity, fires, floods, epidemics, quarantine restrictions, strikes, unusually
severe weather, and delays of common carriers. The Consultant shall notify Director in
writing as soon as it is reasonably possible after the commencement of any excusable
delay, setting forth the full particulars in connection therewith, and shall remedy such
occurrence with all reasonable dispatch, and shall promptly give written notice to Director
of the cessation of such occurrence.
5. Confidential Information, Ownership of Documents and Copyright License.
(a) Any reports, information, or other data prepared or assembled by the
Consultant pursuant to this Agreement shall not be made available to any individual or
organization by the Consultant without the prior written approval of the City. During the
term of this Agreement, and thereafter, the Consultant shall not, without the prior written
consent of the City, disclose to anyone any Confidential Information. The term
Confidential Information for the purposes of this Agreement shall include all proprietary
and confidential information of the City, including but not limited to business plans,
marketing plans, financial information, designs, drawings, specifications, materials,
compilations, documents, instruments, models, source or object codes and other
information disclosed or submitted, orally, in writing, or by any other medium or media.
All Confidential Information shall be and remain confidential and proprietary in the City.
(b) Any and all original sketches, pencil tracings of working drawings,
plans, computations, specifications, computer disk files, writings and other documents
prepared or provided by the Consultant pursuant to this Agreement are the property of
the City at the time of preparation and shall be turned over to the City upon expiration or
termination of the Agreement or default by the Consultant. The Consultant grants the
City a copyright license to use such drawings and writings. The Consultant shall not
permit the reproduction or use thereof by any other person except as otherwise expressly
provided herein. The City may modify the design including any drawings or writings. Any
use by the City of the aforesaid sketches, tracings, plans, computations, specifications,
computer disk files, writings and other documents in completed form as to other projects
or extensions of this Project, or in uncompleted form, without specific written verification
by the Consultant will be at the City’s sole risk and without liability or legal exposure to
the Consultant. The Consultant may keep a copy of all drawings and specifications for
its sole and exclusive use.
(c) If the Consultant should subcontract all or any portion of the services
to be performed under this Agreement, the Consultant shall cause each subcontractor to
also comply with the requirements of this Section 5.
(d) This Section 5 shall survive expiration or termination of this
Agreement.
DPU-S 8.3 /02-2021
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6. Professional Skill. It is further mutually understood and agreed by and
between the parties hereto that inasmuch as the Consultant represents to the City that
the Consultant and its subcontractors, if any, are skilled in the profession and shall
perform in accordance with the standards of said profession necessary to perform the
services agreed to be done by it under this Agreement, the City relies upon the skill of the
Consultant and any subcontractors to do and perform such services in a skillful manner
and the Consultant agrees to thus perform the services and require the same of any
subcontractors. Therefore, any acceptance of such services by the City shall not operate
as a release of the Consultant or any subcontractors from said professional standards.
7. Indemnification. To the furthest extent allowed by law including California
Civil Code section 2782.8, the Consultant shall indemnify, hold harmless and defend the
City and each of its officers, officials, employees, agents and volunteers from any and all
loss, liability, fines, penalties, forfeitures, costs and damages (whether in contract, tort or
strict liability, including but not limited to personal injury, death at any time and property
damage), and from any and all claims, demands and actions in law or equity (including
reasonable attorney's fees and litigation expenses) that arise out of, pertain to, or relate
to the negligence, recklessness or willful misconduct of the Consultant, its principals,
officers, employees, agents or volunteers in the performance of this Agreement.
If the Consultant should subcontract all or any portion of the services to be
performed under this Agreement, the Consultant shall require each subcontractor to
indemnify, hold harmless and defend the City and each of its officers, officials, employees,
agents and volunteers in accordance with the terms of the preceding paragraph.
This section shall survive termination or expiration of this Agreement.
8. Insurance.
(a) Throughout the life of this Agreement, the Consultant shall pay for
and maintain in full force and effect all insurance as required in Exhibit B, which is
incorporated into and part of this Agreement, with an insurance company(ies) either
(i) admitted by the California Insurance Commissioner to do business in the State of
California and rated no less than “A-VII” in the Best’s Insurance Rating Guide, or (ii) as
may be authorized in writing by the City’s Risk Manager or designee at any time and in
its sole discretion. The required policies of insurance as stated in Exhibit B shall maintain
limits of liability of not less than those amounts stated therein. However, the insurance
limits available to the City, its officers, officials, employees, agents and volunteers as
additional insureds, shall be the greater of the minimum limits specified therein or the full
limit of any insurance proceeds to the named insured.
(b) If at any time during the life of the Agreement or any extension, the
Consultant or any of its subcontractors/sub-consultants fail to maintain any required
insurance in full force and effect, all services and work under this Agreement shall be
discontinued immediately, and all payments due or that become due to the Consultant
shall be withheld until notice is received by the City that the required insurance has been
restored to full force and effect and that the premiums therefore have been paid for a
period satisfactory to the City. Any failure to maintain the required insurance shall be
sufficient cause for the City to terminate this Agreement. No action taken by the City
pursuant to this section shall in any way relieve the Consultant of its responsibilities under
DPU-S 8.3 /02-2021
-5-
this Agreement. The phrase “fail to maintain any required insurance” shall include,
without limitation, notification received by the City that an insurer has commenced
proceedings, or has had proceedings commenced against it, indicating that the insurer is
insolvent.
(c) The fact that insurance is obtained by the Consultant shall not be
deemed to release or diminish the liability of the Consultant, including, without limitation,
liability under the indemnity provisions of this Agreement. The duty to indemnify the City
shall apply to all claims and liability regardless of whether any insurance policies are
applicable. The policy limits do not act as a limitation upon the amount of indemnification
to be provided by the Consultant. Approval or purchase of any insurance contracts or
policies shall in no way relieve from liability nor limit the liability of the Consultant, its
principals, officers, agents, employees, persons under the supervision of the Consultant,
vendors, suppliers, invitees, consultants, sub-consultants, subcontractors, or anyone
employed directly or indirectly by any of them.
(d) If the Consultant should subcontract all or any portion of the services
to be performed under this Agreement, the Consultant shall require each
subcontractor/sub-consultant to provide insurance protection, as an additional insured, to
the City and each of its officers, officials, employees, agents and volunteers in accordance
with the terms of this section, except that any required certificates and applicable
endorsements shall be on file with the Consultant and the City prior to the commencement
of any services by the subcontractor. The Consultant and any subcontractor/sub-
consultant shall establish additional insured status for the City, its officers, officials,
employees, agents and volunteers by using Insurance Service Office (ISO) Form CG
20 10 11 85 or both CG 20 10 10 01 and CG 20 37 10 01 or by an executed manuscript
company endorsement providing additional insured status as broad as that contained in
ISO Form CG 20 10 11 85.
9. Conflict of Interest and Non-Solicitation.
(a) Prior to the City’s execution of this Agreement, the Consultant shall
complete a City of Fresno conflict of interest disclosure statement in the form as set forth
in Exhibit C. During the term of this Agreement, the Consultant shall have the obligation
and duty to immediately notify the City in writing of any change to the information provided
by the Consultant in such statement.
(b) The Consultant shall comply, and require its subcontractors to
comply, with all applicable (i) professional canons and requirements governing avoidance
of impermissible client conflicts; and (ii) federal, state and local conflict of interest laws
and regulations including, without limitation, California Government Code Section 1090
et. seq., the California Political Reform Act (California Government Code Section 87100
et. seq.), the regulations of the Fair Political Practices Commission concerning disclosure
and disqualification (2 California Code of Regulations Section 18700 et. seq.) and Section
4-112 of the Fresno Municipal Code (Ineligibility to Compete). At any time, upon written
request of the City, the Consultant shall provide a written opinion of its legal counsel and
that of any subcontractor that, after a due diligent inquiry, the Consultant and the
respective subcontractor(s) are in full compliance with all laws and regulations. The
Consultant shall take, and require its subcontractors to take, reasonable steps to avoid
DPU-S 8.3 /02-2021
-6-
any appearance of a conflict of interest. Upon discovery of any facts giving rise to the
appearance of a conflict of interest, the Consultant shall immediately notify the City of
these facts in writing.
(c) In performing the work or services to be provided hereunder, the
Consultant shall not employ or retain the services of any person while such person either
is employed by the City or is a member of any City council, commission, board,
committee, or similar City body. This requirement may be waived in writing by the City
Manager, if no actual or potential conflict is involved.
(d) The Consultant represents and warrants that it has not paid or
agreed to pay any compensation, contingent or otherwise, direct or indirect, to solicit or
procure this Agreement or any rights/benefits hereunder.
(e) Neither the Consultant, nor any of the Consultant’s subcontractors
performing any services on this Project, shall bid for, assist anyone in the preparation of
a bid for, or perform any services pursuant to, any other contract in connection with this
Project. The Consultant and any of its subcontractors shall have no interest, direct or
indirect, in any other contract with a third party in connection with this Project unless such
interest is in accordance with all applicable law and fully disclosed to and approved by
the City Manager, in advance and in writing.
(f) If the Consultant should subcontract all or any portion of the work to
be performed or services to be provided under this Agreement, the Consultant shall
include the provisions of this Section 9 in each subcontract and require its subcontractors
to comply therewith.
(g) This Section 9 shall survive expiration or termination of this
Agreement.
10. Recycling Program. In the event the Consultant maintains an office or
operates a facility(ies), or is required herein to maintain or operate same, within the
incorporated limits of the City of Fresno, the Consultant at its sole cost and expense shall:
(a) Immediately establish and maintain a viable and ongoing recycling
program, approved by the City’s Solid Waste Management Division, for each office and
facility. Literature describing the City recycling programs is available from the City’s Solid
Waste Management Division and by calling City of Fresno Recycling Hotline at (559) 621-
1111.
(b) Immediately contact the City’s Solid Waste Management Division at
(559) 621-1452 and schedule a free waste audit, and cooperate with such Division in their
conduct of the audit for each office and facility.
(ci) Cooperate with and demonstrate to the satisfaction of the City’s Solid
Waste Management Division the establishment of the recycling program in paragraph (i)
above and the ongoing maintenance thereof.
11. General Terms.
(a) Except as otherwise provided by law, all notices expressly required
of the City within the body of this Agreement, and not otherwise specifically provided for,
shall be effective only if signed by the Director or designee.
DPU-S 8.3 /02-2021
-7-
(b) Records of the Consultant’s expenses pertaining to the Project shall
be kept on a generally recognized accounting basis and shall be available to the City or
its authorized representatives upon request during regular business hours throughout the
life of this Agreement and for a period of three years after final payment or, if longer, for
any period required by law. In addition, all books, documents, papers, and records of the
Consultant pertaining to the Project shall be available for the purpose of making audits,
examinations, excerpts, and transcriptions for the same period of time. If any litigation,
claim, negotiations, audit or other action is commenced before the expiration of said time
period, all records shall be retained and made available to the City until such action is
resolved, or until the end of said time period whichever shall later occur. If the Consultant
should subcontract all or any portion of the services to be performed under this
Agreement, the Consultant shall cause each subcontractor to also comply with the
requirements of this paragraph. This Section 11(b) shall survive expiration or termination
of this Agreement.
(c) Prior to execution of this Agreement by the City, the Consultant shall
have provided evidence to the City that the Consultant is licensed to perform the services
called for by this Agreement (or that no license is required). If the Consultant should
subcontract all or any portion of the work or services to be performed under this
Agreement, the Consultant shall require each subcontractor to provide evidence to the
City that subcontractor is licensed to perform the services called for by this Agreement
(or that no license is required) before beginning work.
12. Nondiscrimination. To the extent required by controlling federal, state and
local law, the Consultant shall not employ discriminatory practices in the provision of
services, employment of personnel, or in any other respect on the basis of race, religious
creed, color, national origin, ancestry, physical disability, mental disability, medical
condition, marital status, sex, age, sexual orientation, ethnicity, status as a disabled
veteran or veteran of the Vietnam era. Subject to the foregoing and during the
performance of this Agreement, the Consultant agrees as follows:
(a) The Consultant will comply with all applicable laws and regulations
providing that no person shall, on the grounds of race, religious creed, color, national
origin, ancestry, physical disability, mental disability, medical condition, marital status,
sex, age, sexual orientation, ethnicity, status as a disabled veteran or veteran of the
Vietnam era be excluded from participation in, be denied the benefits of, or be subject to
discrimination under any program or activity made possible by or resulting from this
Agreement.
(b) The Consultant will not discriminate against any employee or
applicant for employment because of race, religious creed, color, national origin, ancestry,
physical disability, mental disability, medical condition, marital status, sex, age, sexual
orientation, ethnicity, status as a disabled veteran or veteran of the Vietnam era. The
Consultant shall ensure that applicants are employed, and the employees are treated
during employment, without regard to their race, religious creed, color, national origin,
ancestry, physical disability, mental disability, medical condition, marital status, sex, age,
sexual orientation, ethnicity, status as a disabled veteran or veteran of the Vietnam era.
Such requirement shall apply to the Consultant’s employment practices including, but not
be limited to, the following: employment, upgrading, demotion or transfer; recruitment or
DPU-S 8.3 /02-2021
-8-
recruitment advertising; layoff or termination; rates of pay or other forms of compensation;
and selection for training, including apprenticeship. The Consultant agrees to post in
conspicuous places, available to employees and applicants for employment, notices
setting forth the provision of this nondiscrimination clause.
(c) The Consultant will, in all solicitations or advertisements for
employees placed by or on behalf of the Consultant in pursuit hereof, state that all
qualified applicants will receive consideration for employment without regard to race,
religious creed, color, national origin, ancestry, physical disability, mental disability,
medical condition, marital status, sex, age, sexual orientation, ethnicity, status as a
disabled veteran or veteran of the Vietnam era.
(d) The Consultant will send to each labor union or representative of
workers with which it has a collective bargaining agreement or other contract or
understanding, a notice advising such labor union or workers' representatives of the
Consultant’s commitment under this section and shall post copies of the notice in
conspicuous places available to employees and applicants for employment.
(e) If the Consultant should subcontract all or any portion of the services
to be performed under this Agreement, the Consultant shall cause each subcontractor to
also comply with the requirements of this Section 12.
13. Independent Contractor.
(a) In the furnishing of the services provided for herein, the Consultant
is acting solely as an independent contractor. Neither the Consultant, nor any of its
officers, agents or employees shall be deemed an officer, agent, employee, joint venturer,
partner or associate of the City for any purpose. The City shall have no right to control or
supervise or direct the manner or method by which the Consultant shall perform its work
and functions. However, the City shall retain the right to administer this Agreement so as
to verify that the Consultant is performing its obligations in accordance with the terms and
conditions thereof.
(b) This Agreement does not evidence a partnership or joint venture
between the Consultant and the City. The Consultant shall have no authority to bind the
City absent the City’s express written consent. Except to the extent otherwise provided
in this Agreement, the Consultant shall bear its own costs and expenses in pursuit thereof.
(c) Because of its status as an independent contractor, the Consultant
and its officers, agents and employees shall have absolutely no right to employment rights
and benefits available to City employees. The Consultant shall be solely liable and
responsible for all payroll and tax withholding and for providing to, or on behalf of, its
employees all employee benefits including, without limitation, health, welfare and
retirement benefits. In addition, together with its other obligations under this Agreement,
the Consultant shall be solely responsible, indemnify, defend and save the City harmless
from all matters relating to employment and tax withholding for and payment of the
Consultant’s employees, including, without limitation, (i) compliance with Social Security
and unemployment insurance withholding, payment of workers’ compensation benefits,
and all other laws and regulations governing matters of employee withholding, taxes and
payment; and (ii) any claim of right or interest in the City employment benefits,
DPU-S 8.3 /02-2021
-9-
entitlements, programs and/or funds offered employees of the City whether arising by
reason of any common law, de facto, leased, or co-employee rights or other theory. It is
acknowledged that during the term of this Agreement, the Consultant may be providing
services to others unrelated to the City or to this Agreement.
14. Notices. Any notice required or intended to be given to either party under
the terms of this Agreement shall be in writing and shall be deemed to be duly given if
delivered personally, transmitted by facsimile followed by telephone confirmation of
receipt, or sent by United States registered or certified mail, with postage prepaid, return
receipt requested, addressed to the party to which notice is to be given at the party's
address set forth on the signature page of this Agreement or at such other address as the
parties may from time to time designate by written notice. Notices served by United
States mail in the manner above described shall be deemed sufficiently served or given
at the time of the mailing thereof.
15. Binding. Subject to Section 16, below, once this Agreement is signed by all
parties, it shall be binding upon, and shall inure to the benefit of, all parties, and each
parties' respective heirs, successors, assigns, transferees, agents, servants, employees,
and representatives.
16. Assignment.
(a) This Agreement is personal to the Consultant and there shall be no
assignment by the Consultant of its rights or obligations under this Agreement without the
prior written approval of the City Manager or designee. Any attempted assignment by the
Consultant, its successors or assigns, shall be null and void unless approved in writing
by the City Manager or designee.
(b) The Consultant hereby agrees not to assign the payment of any
monies due the Consultant from the City under the terms of this Agreement to any other
individual(s), corporation(s) or entity(ies). The City retains the right to pay any and all
monies due the Consultant directly to the Consultant.
17. Compliance With Law. In providing the services required under this
Agreement, the Consultant shall at all times comply with all applicable laws of the United
States, the State of California and the City, and with all applicable regulations
promulgated by federal, state, regional, or local administrative and regulatory agencies,
now in force and as they may be enacted, issued, or amended during the term of this
Agreement.
18. Waiver. The waiver by either party of a breach by the other of any provision
of this Agreement shall not constitute a continuing waiver or a waiver of any subsequent
breach of either the same or a different provision of this Agreement. No provisions of this
Agreement may be waived unless in writing and signed by all parties to this Agreement.
Waiver of any one provision herein shall not be deemed to be a waiver of any other
provision herein.
19. Governing Law and Venue. This Agreement shall be governed by, and
construed and enforced in accordance with, the laws of the State of California, excluding,
however, any conflict of laws rule which would apply the law of another jurisdiction. Venue
for purposes of the filing of any action regarding the enforcement or interpretation of this
DPU-S 8.3 /02-2021
-10-
Agreement and any rights and duties hereunder shall be Fresno County, California.
20. Headings. The section headings in this Agreement are for convenience and
reference only and shall not be construed or held in any way to explain, modify or add to
the interpretation or meaning of the provisions of this Agreement.
21. Severability. The provisions of this Agreement are severable. The
invalidity, or unenforceability of any one provision in this Agreement shall not affect the
other provisions.
22. Interpretation. The parties acknowledge that this Agreement in its final form
is the result of the combined efforts of the parties and that, should any provision of this
Agreement be found to be ambiguous in any way, such ambiguity shall not be resolved
by construing this Agreement in favor of or against either party, but rather by construing
the terms in accordance with their generally accepted meaning.
23. Attorney's Fees. If either party is required to commence any proceeding or
legal action to enforce or interpret any term, covenant or condition of this Agreement, the
prevailing party in such proceeding or action shall be entitled to recover from the other
party its reasonable attorney's fees and legal expenses.
24. Exhibits. Each exhibit and attachment referenced in this Agreement is, by
the reference, incorporated into and made a part of this Agreement.
25. Precedence of Documents. In the event of any conflict between the body
of this Agreement and any Exhibit or Attachment hereto, the terms and conditions of the
body of this Agreement shall control and take precedence over the terms and conditions
expressed within the Exhibit or Attachment. Furthermore, any terms or conditions
contained within any Exhibit or Attachment hereto which purport to modify the allocation
of risk between the parties, provided for within the body of this Agreement, shall be null
and void.
26. Cumulative Remedies. No remedy or election hereunder shall be deemed
exclusive but shall, wherever possible, be cumulative with all other remedies at law or in
equity.
27. No Third Party Beneficiaries. The rights, interests, duties and obligations
defined within this Agreement are intended for the specific parties hereto as identified in
the preamble of this Agreement. Notwithstanding anything stated to the contrary in this
Agreement, it is not intended that any rights or interests in this Agreement benefit or flow
to the interest of any third parties.
28. Extent of Agreement. Each party acknowledges that they have read and
fully understand the contents of this Agreement. This Agreement represents the entire
and integrated agreement between the parties with respect to the subject matter hereof
and supersedes all prior negotiations, representations or agreements, either written or
oral. This Agreement may be modified only by written instrument duly authorized and
executed by both the City and the Consultant.
[Signatures follow on the next page.]
DPU-S 8.3 /02-2021
-11-
IN WITNESS WHEREOF, the parties have executed this Agreement at Fresno,
California, the day and year first above written.
CITY OF FRESNO,
a California municipal corporation
By:
Michael Carbajal,
Director
Department of Public Utilities
ATTEST:
YVONNE SPENCE, MMC CRM
City Clerk
By:
Deputy
No signature of City Attorney required.
Standard Document #DPU-S 8.3/02-2021
has been used without modification, as
certified by the undersigned.
By:
Samuel Nadores
Professional Engineer
Department of Public Utilities
REVIEWED BY:
Glenn A Knapp, Supervising Professional
Engineer
Department of Public Utilities
Addresses:
CITY:
City of Fresno
Attention: Samuel Nadores,
Professional Engineer
2101 G Street
Fresno, CA 93706
Phone: (559) 621-1602
Facsimile (559) 498-4126
E-mail: Samuel.Nadores@fresno.gov
PCUBED ASSOCIATES
INCORPORATED,
a California corporation
By:
Name:
Title:
(If corporation or LLC., Board
Chair, Pres. or Vice Pres.)
By:
Name:
Title:
(If corporation or LLC., CFO,
Treasurer, Secretary or Assistant
Secretary)
Any Applicable Professional License:
Number:
Name:
Date of Issuance:
CONSULTANT:
Pcubed Associates Inc.
Attention: Pawan Gupta
PHD,SE,PE,LEED,
Principal In Charge
221 E Lexington Drive, #304
Glendale, CA 91206
Phone: (559) 247-9835
Facsimile” [area code and #]
E-mail pawan@pcubedassociates.com
Attachments: 1. Exhibit A - Scope of Services
2. Exhibit B - Insurance Requirements
3. Exhibit C - Conflict of Interest Disclosure Form
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DPU-S 8.3 /02-2021
Page 1 of 5
EXHIBIT A
SCOPE OF SERVICES
Consultant Service Agreement between City of Fresno (City)
and Pcubed Associates Inc. (Consultant)
Forensic Investigation of Structural Components at Fresno-Clovis Regional Wastewater
Reclamation Facility(RWRF)
Scope of Service:
Based on the project scope and our proposed approach we have developed the following
phased work plan to assess the current deterioration and repair/upgrade the structure.
As we go through the various phases, the work plan will be refined/expanded in
coordination with the City Staff based on the project needs.
PHASE 1: PROJECT COORDINATION
We will meet with the City representatives and other involved stakeholders to discuss
project intent and expectations. We have found these preliminary meetings to be key in
establishing a shared vision for the successful completion of the project and
understanding the project constraints.
Task 1: Understand Your Objectives / Learn the History
We will meet with City personnel prior to commencement of the work to gain an
understanding of the needs and long-term service life, and level of service objectives of
the headworks building.
• We will review the original construction documents, as well as previous
assessments and repair reports if available to learn about the history of the structure.
• We will conduct a preliminary field review to understand the types of issues to be
included in the program.
• Based on the initial review and discussions we will finalize the assessment and
testing program.
Ongoing Coordination with the City
Throughout the duration of the project we will discuss progress and coordinate with the
City personnel in periodic conference calls and design charettes to allow us to provide
update and get input from the stakeholders at critical phases of the assessment/design.
Task 3: Quality Control
We have a robust Quality Assurance and Quality Control program for the project. An
experienced engineer will review the documents at critical stages of the project. The
QA/QC engineer will conduct an overall review of the documents and provide feedback
on the quality of the documents point out elements that may be missing. In our experience
having a fresh pair of experienced eyes review the documents is invaluable in catching
possible errors.
DPU-S 8.3 /02-2021
Page 2 of 5
Consultant Services for Phase 1 is estimated to be $8,100.
Estimated Miscellaneous Direct Expenses to be $300.
PHASE II: ASSESSMENT AND CONDIONS SURVEY
Task 1: Field Assessment/Review
Visual Review
We will conduct a visual assessment of the structure to document the current physical
condition of structural, waterproofing and facade elements. The review will be conducted
at times convenient to the client. The assessment will include visual observations of
readily observable elements of the structure showing evidence of structural distress
including:
• Floors, columns, beams, walls, ceilings and other structural elements of the areas
that have evidence of distress based on the initial field review. The visual review will
document noticeable distress such as cracks, leaks, spalls, joint deterioration and other
similar adverse conditions;
• Stairs structures and other similar structural elements;
• Architectural and exterior façade elements;
• Other elements that are noted during the field evaluation and discussion with the
City personnel;
• We will prioritize the observed conditions into three categories (High Priority,
Medium Priority and Low Priority) according to the perceived immediacy of performing
repairs. A fourth category (Non-Structural/Enhancements) may also be included if
conditions are observed that are not technically structural in nature but may have a
significant impact on the ongoing performance and condition of the structure or enhance
the appearance and efficiency of the structure.
Field Testing
The field evaluation will include field-testing, material testing and non-destructive
evaluation of select members. The field testing and visual review will be used to
understand the cause of distress in the structure and develop viable repair approaches
and alternatives. The following areas will be targeted during the testing program: Grit
Pump Room and Pump Mezzanine Room, Exterior cracking of the building façade, roof
and canopies above the Grit Pump Room. The following field tests are anticipated for the
testing program:
• Chain drag survey of selected areas of the supported concrete floor surfaces to
identify patterns of delaminated surfaces;
• Acoustic sounding of select elements to identify delaminated areas in columns,
beams and walls;
• Concrete cover measurement by GPR (Ground Penetrating Radar) at selected
locations;
• Galva pulse and/or half-cell potential readings of selected structural elements to
monitor their rate of corrosion of the mild reinforcement;
• Chloride ion content by extracting powder samples per ASTM C 1152 at equal
increments in the first 3" of the concrete to determine the chloride contamination at
DPU-S 8.3 /02-2021
Page 3 of 5
various depths of the floor slab;
• Concrete samples will be extracted from wall and floors and tested with 2%
phenolphthalein solution to determine the depth of carbonation in the concrete;
• Cores will be removed from the columns/walls for petrographic analysis of concrete
and determine the quality of the original concrete, determine the level of chemical
contamination and understand its influence on the long-term durability of concrete.
The preliminary field-testing program is expected to be as follows:
TEST UNIT UNIT
Concrete Cover (GPR) Loc 6
Petrographic Examination Loc 4
Chloride Content Loc 8
Carbonation Depth Loc 4
We will notify the City of items in need of immediate repairs for continued safe use of the
facility, if any.
Consultant Services for Phase 1 is estimated to be $11,600.
Estimated Miscellaneous Direct Expenses to be $14,700.
PHASE III: ASSESSMENT TECHNICAL MEMORANDUM
We will compile and analyze field review, and laboratory testing data to generate repair
alternatives, recommendations, and preliminary cost estimates and present them to the
City for discussion and feedback.
Based on the discussions and feedback, we will finalize our recommendations in a
comprehensive technical memorandum. This will include:
• Executive Summary of our review and recommendations;
• Observations made during the field survey with photographic documentations of
typical observed conditions;
• Summary of the tests conducted and discussion of the results and their
implications on the long-term performance of the structure;
• Prioritized list of repair/remediation recommendations for the structure;
• Engineer’s estimate of the repair/rehabilitation costs for various
alternatives with long term performance implications;
Based on available budget and discussion with City, we will finalize the repair program
and develop a detailed repair scope for the construction phase of the project.
Consultant Services for Phase 1 is estimated to be $15,700.
Estimated Miscellaneous Direct Expenses to be $400.
PHASE IV: CONSTRUCTION DOCUMENTS
Once the repair and upgrade scope has been finalized, we will develop construction
DPU-S 8.3 /02-2021
Page 4 of 5
documents to repair/rehabilitate the existing structure. In this phase we will develop plans
and technical specifications for competitive bidding by contractors. All work will be
performed under the direction of a California Licensed Structural Engineer based on the
local City codes, by-laws and industry standards that are currently in effect. All drawings
will be completed using AutoCAD.
• Once the City representatives have reviewed and agreed with the project bid items
and budget, we will prepare plans, details and technical specifications and present the
progress technical drawings and specifications along with an updated cost estimate to
the City representatives for 90% review.
• The City review comments will be incorporated into the 100% construction
documents. We will also work with the City to incorporate the front-end Division 1
specifications into the full specifications package at 100% construction documents.
• We will finalize the construction documents and submit stamped documents to the
city for solicitation of public bids.
Consultant Services for Phase IV is estimated to be $46,400.
Estimated Miscellaneous Direct Expenses to be $800.
PHASE V: CONSTRUCTION SERVICES (IF NEEDED)
We will provide the City with an estimate of providing “Services During Construction”.
Depending on the City’s needs we will be available to provide assistance to the City staff
in the implementation of the repairs on an as-needed basis; this includes:
• Attending pre-bid/pre-construction meetings;
• Responding to RFI during bid stage and issuing Addendums and clarifications as
necessary;
• Reviewing Contractor Submittals and RFI’s during construction;
• Performing field observations and project progress meetings as necessary;
• Preparing punch list of items upon substantial completion of the project.
Consultant Services for Phase 1 is estimated to be $17,200.
Estimated Miscellaneous Direct Expenses to be $2,100.
PROJECT DELIVERABLES
The following project deliverables are included in the forensic assessment and
construction documents phases of the project.
• Draft Forensic Assessment Technical Memorandum (6 hard copes + 1 pdf + 1 MS
Word).
• Final Forensic Assessment Technical Memorandum (6 hard copies, + 1 pdf + 1
MS Word).
• 90% Construction Documents Plans and specifications (5 sets of 11x17 plans and
5 hard copies of specifications + 1 pdf + 1 AutoCad/MS Word).
• Final signed and stamped bid set of construction documents (5 full size plans + 5
specifications + 1 pdf + 1 AutoCad/MS Word).
DPU-S 8.3 /02-2021
Page 5 of 5
SCHEDULE OF FEES
Pcubed Associates 2020 Billing Rates
Standard Hourly Labor Rates
Designation
Principal…….........................................................................................................$250.00
Associate Principal................................................................................................$225.00
Design Director…..................................................................................................$200.00
Senior Consultant..................................................................................................$185.00
Consultant.............................................................................................................$150.00
Engineer................................................................................................................$125.00
CAD Drafter………................................................................................................$125.00
Technician…………...............................................................................................$110.00
Project Accountant.................................................................................................$100.00
Administrative Assistant...........................................................................................$85.00
Page 1 of 4
2/2/2018
Exhibit B
INSURANCE REQUIREMENTS
Consultant Service Agreement between City of Fresno (“CITY”)
and Pcubed Associates Inc. (“CONSULTANT”)
Forensic Investigation of Structural Components at Fresno-Clovis Regional Wastewater
Reclamation Facility (RWRF)
PROJECT TITLE
MINIMUM SCOPE OF INSURANCE
Coverage shall be at least as broad as:
1. The most current version of Insurance Services Office (ISO) Commercial
General Liability Coverage Form CG 00 01, providing liability coverage
arising out of your business operations. The Commercial General Liability
policy shall be written on an occurrence form and shall provide coverage
for “bodily injury,” “property damage” and “personal and advertising injury”
with coverage for premises and operations (including the use of owned
and non-owned equipment), products and completed operations, and
contractual liability (including, without limitation, indemnity obligations
under the Agreement) with limits of liability not less than those set forth
under “Minimum Limits of Insurance.”
2. The most current version of ISO *Commercial Auto Coverage Form CA 00
01, providing liability coverage arising out of the ownership, maintenance
or use of automobiles in the course of your business operations. The
Automobile Policy shall be written on an occurrence form and shall
provide coverage for all owned, hired, and non-owned automobiles or
other licensed vehicles (Code 1- Any Auto). If personal automobile
coverage is used, the CITY, its officers, officials, employees, agents, and
volunteers are to be listed as additional insureds.
3. Workers’ Compensation insurance as required by the State of California
and Employer’s Liability Insurance.
4. Professional Liability (Errors and Omissions) insurance appropriate to
CONSULTANT’s profession.
MINIMUM LIMITS OF INSURANCE
CONSULTANT, or any party the CONSULTANT subcontracts with, shall maintain limits
of liability of not less than those set forth below. However, insurance limits available to
CITY, its officers, officials, employees, agents, and volunteers as additional insureds,
shall be the greater of the minimum limits specified herein or the full limit of any
insurance proceeds available to the named insured:
1. COMMERCIAL GENERAL LIABILITY:
(i) $1,000,000 per occurrence for bodily injury and property damage;
(ii) $1,000,000 per occurrence for personal and advertising injury;
(iii) $2,000,000 aggregate for products and completed operations; and,
Page 2 of 4
2/2/2018
(iv) $2,000,000 general aggregate applying separately to the work
performed under the Agreement.
2. COMMERCIAL AUTOMOBILE LIABILITY:
$1,000,000 per accident for bodily injury and property damage.
3. WORKERS’ COMPENSATION INSURANCE as required by the State of
California with statutory limits.
4. EMPLOYER’S LIABILITY:
(i) $1,000,000 each accident for bodily injury;
(ii) $1,000,000 disease each employee; and,
(iii) $1,000,000 disease policy limit.
5. PROFESSIONAL LIABILITY (Errors and Omissions):
(i) $1,000,000 per claim/occurrence; and,
(ii) $2,000,000 policy aggregate.
UMBRELLA OR EXCESS INSURANCE
In the event CONSULTANT purchases an Umbrella or Excess insurance policy(ies) to
meet the “Minimum Limits of Insurance,” this insurance policy(ies) shall “follow form”
and afford no less coverage than the primary insurance policy(ies). In addition, such
Umbrella or Excess insurance policy(ies) shall also apply on a primary and non-
contributory basis for the benefit of the CITY, its officers, officials, employees, agents,
and volunteers.
DEDUCTIBLES AND SELF-INSURED RETENTIONS
CONSULTANT shall be responsible for payment of any deductibles contained in any
insurance policy(ies) required herein and CONSULTANT shall also be responsible for
payment of any self-insured retentions. Any deductibles or self-insured retentions must
be declared to on the Certificate of Insurance, and approved by, the CITY’s Risk
Manager or designee. At the option of the CITY’s Risk Manager or designee, either:
(i) The insurer shall reduce or eliminate such deductibles or self-
insured retentions as respects CITY, its officers, officials,
employees, agents, and volunteers; or
(ii) CONSULTANT shall provide a financial guarantee, satisfactory to
CITY’s Risk Manager or designee, guaranteeing payment of losses
and related investigations, claim administration and defense
expenses. At no time shall CITY be responsible for the payment of
any deductibles or self-insured retentions.
OTHER INSURANCE PROVISIONS/ENDORSEMENTS
The General Liability and Automobile Liability insurance policies are to contain, or be
endorsed to contain, the following provisions:
1. CITY, its officers, officials, employees, agents, and volunteers are to be
covered as additional insureds. CONSULTANT shall establish additional
insured status for the City and for all ongoing and completed operations by
use of ISO Form CG 20 10 11 85 or both CG 20 10 10 01 and
CG 20 37 10 01 or by an executed manuscript insurance company
Page 3 of 4
2/2/2018
endorsement providing additional insured status as broad as that
contained in ISO Form CG 20 10 11 85.
2. The coverage shall contain no special limitations on the scope of
protection afforded to CITY, its officers, officials, employees, agents, and
volunteers. Any available insurance proceeds in excess of the specified
minimum limits and coverage shall be available to the Additional Insured.
3. For any claims relating to this Agreement, CONSULTANT’s insurance
coverage shall be primary insurance with respect to the CITY, its officers,
officials, employees, agents, and volunteers. Any insurance or self-
insurance maintained by the CITY, its officers, officials, employees,
agents, and volunteers shall be excess of CONSULTANT’s insurance and
shall not contribute with it. CONSULTANT shall establish primary and
non-contributory status by using ISO Form CG 20 01 04 13 or by an
executed manuscript insurance company endorsement that provides
primary and non-contributory status as broad as that contained in ISO
Form CG 20 01 04 13.
The Workers’ Compensation insurance policy is to contain, or be endorsed to contain,
the following provision: CONSULTANT and its insurer shall waive any right of
subrogation against CITY, its officers, officials, employees, agents, and volunteers.
If the Professional Liability (Errors and Omissions) insurance policy is written on a
claims-made form:
1. The retroactive date must be shown, and must be before the effective date
of the Agreement or the commencement of work by CONSULTANT.
2. Insurance must be maintained and evidence of insurance must be
provided for at least five (5) years after completion of the Agreement work
or termination of the Agreement, whichever occurs first, or, in the
alternative, the policy shall be endorsed to provide not less than a five (5)
year discovery period.
3. If coverage is canceled or non-renewed, and not replaced with another
claims-made policy form with a retroactive date prior to the effective date
of the Agreement or the commencement of work by CONSULTANT,
CONSULTANT must purchase “extended reporting” coverage for a
minimum of five (5) years completion of the Agreement work or
termination of the Agreement, whichever occurs first.
4. A copy of the claims reporting requirements must be submitted to CITY for
review.
5. These requirements shall survive expiration or termination of the
Agreement.
All policies of insurance required herein shall be endorsed to provide that the coverage
shall not be cancelled, non-renewed, reduced in coverage or in limits except after thirty
(30) calendar days written notice by certified mail, return receipt requested, has been
given to CITY. CONSULTANT is also responsible for providing written notice to the
CITY under the same terms and conditions. Upon issuance by the insurer, broker, or
agent of a notice of cancellation, non-renewal, or reduction in coverage or in limits,
Page 4 of 4
2/2/2018
CONSULTANT shall furnish CITY with a new certificate and applicable endorsements
for such policy(ies). In the event any policy is due to expire during the work to be
performed for CITY, CONSULTANT shall provide a new certificate, and applicable
endorsements, evidencing renewal of such policy not less than fifteen (15) calendar
days prior to the expiration date of the expiring policy.
Should any of the required policies provide that the defense costs are paid within the
Limits of Liability, thereby reducing the available limits by any defense costs, then the
requirement for the Limits of Liability of these polices will be twice the above stated
limits.
The fact that insurance is obtained by CONSULTANT shall not be deemed to release or
diminish the liability of CONSULTANT, including, without limitation, liability under the
indemnity provisions of this Agreement. The policy limits do not act as a limitation upon
the amount of indemnification to be provided by CONSULTANT. Approval or purchase
of any insurance contracts or policies shall in no way relieve from liability nor limit the
liability of CONSULTANT, its principals, officers, agents, employees, persons under the
supervision of CONSULTANT, vendors, suppliers, invitees, consultants, sub-
consultants, subcontractors, or anyone employed directly or indirectly by any of them.
SUBCONTRACTORS - If CONSULTANT subcontracts any or all of the services to be
performed under this Agreement, CONSULTANT shall require, at the discretion of the
CITY Risk Manager or designee, subcontractor(s) to enter into a separate Side
Agreement with the City to provide required indemnification and insurance protection.
Any required Side Agreement(s) and associated insurance documents for the
subcontractor must be reviewed and preapproved by CITY Risk Manager or designee.
If no Side Agreement is required, CONSULTANT will be solely responsible for ensuring
that it’s subcontractors maintain insurance coverage at levels no less than those
required by applicable law and is customary in the relevant industry.
VERIFICATION OF COVERAGE
CONSULTANT shall furnish CITY with all certificate(s) and applicable endorsements
effecting coverage required hereunder. All certificates and applicable endorsements
are to be received and approved by the CITY’S Risk Manager or his/her designee prior
to CITY’S execution of the Agreement and before work commences. All non-ISO
endorsements amending policy coverage shall be executed by a licensed and
authorized agent or broker. Upon request of CITY, CONSULTANT shall immediately
furnish City with a complete copy of any insurance policy required under this
Agreement, including all endorsements, with said copy certified by the underwriter to be
a true and correct copy of the original policy. This requirement shall survive expiration or
termination of this Agreement.
EXHIBIT C
DISCLOSURE OF CONFLICT OF INTEREST
Forensic Investigation of Structural Components at Fresno-Clovis Regional Wastewater
Reclamation Facility (RWRF)
YES* NO
1 Are you currently in litigation with the City of Fresno or any of its
agents?
2 Do you represent any firm, organization, or person who is in litigation
with the City of Fresno?
3 Do you currently represent or perform work for any clients who do
business with the City of Fresno?
4 Are you or any of your principals, managers, or professionals,
owners or investors in a business which does business with the City
of Fresno, or in a business which is in litigation with the City of
Fresno?
5 Are you or any of your principals, managers, or professionals,
related by blood or marriage to any City of Fresno employee who
has any significant role in the subject matter of this service?
6 Do you or any of your subcontractors have, or expect to have, any
interest, direct or indirect, in any other contract in connection with
this Project?
* If the answer to any question is yes, please explain in full below.
Explanation:
Signature
Date
(Name)
(Company)
(Address)
Additional page(s) attached.
(City, State Zip)
"0%'#,('*%."
/ '-),
- "!++( % ,"+'
&"'! &"
Whites Bridge
MapleBrawleyHerndon
Bullard
Shaw
ClovisFowlerTemperanceWestPalmClovisFowlerTemperanceDe WolfShields
McKinley
Belmont
ChestnutPeachAmerican
CedarGrantlandHayesElmEastMarksWestWalnutCorneliaNorth
California
Jensen
Ashlan GrantlandHayesCorneliaBrawleyMarksShaw
Bullard
Herndon
Nees
De WolfShields
McKinley
Belmont
California
Jensen
North
Kings Canyon
AshlanPeachBehymer
Copper
Shepherd
NeesBlackstoneFirstCedarChestnutGarfieldBryanPolkBlytheValentineVan NessFruitMaroaFresnoMillbrookMapleWillowDakota
Clinton
Olive
Gettysburg
Barstow
Sierra
Alluvial
Nielsen
Kearney
Muscat
Annadale
Church
WillowMinnewawaMalaga
OrangeBryanSunnysideArmstrongLocanFigCherryHughesFruitPolkValentineBlytheAlluvial
Sierra
Barstow
Perrin
SunnysideArmstrongLocanClinton
Olive
Tulare
Butler
Church
Annadale
DakotaMinnewawaInternational
Teague
CAPITAL PROJECTS
DEPARTMENT
0 1 2 3
Miles
VICINITY MAP District 3
City Limits
Project Area
Forensic Investigation of
Structural Components at the
Fresno-Clovis Regional
Wastewater Reclamation
Facility
Forensic Invest
Of Structural
Components
W J e n s e n A ve W J e n s e n A v e
Headworks Building
Secondary
Sedimentation
Basin B-Side
Aeration
Basin
0 210 420105
Feet
LOCATION MAP
Forensic Investigation of
Structural Components at the
Fresno-Clovis Regional
Wastewater Reclamation Facility
Project ID: TC00180 - BL021
Council District: 3
Legend
Project Area
CAPITAL PROJECTS
DEPARTMENT
City of Fresno
Staff Report
2600 Fresno Street
Fresno, CA 93721
www.fresno.gov
File #:ID 25-148 Agenda Date:1/30/2025 Agenda #:
2.-H.
REPORT TO THE CITY COUNCIL
FROM:SANTINO DANISI, Finance Director/City Controller
Finance Department
BY:PHILLIP L. HARDCASTLE, Principal Accountant - Debt & Investment
Finance Department
SUBJECT
Actions pertaining to executing the Master Equipment Lease Purchase Agreement:
1. RESOLUTION - Adopt a Resolution authorizing the execution and delivery of a Master
Equipment Lease Purchase Agreement and certain separate lease schedules with respect to
the acquisition, purchase, financing and leasing of equipment for the public benefit; and
authorizing the execution and delivery of documents required in connection therewith.
2. Approve an agreement of the Master Equipment Lease Purchase Agreement (MELPA) with
Banc of America Public Capital Corp (BAPCC).
3. Authorize the City Controller to sign the Master Equipment Lease Purchase Agreement and
related documents with BAPCC on behalf of the City.
RECOMMENDATION
Staff recommends that the Council adopt a resolution approving the execution and delivery of a
Master Equipment Lease Purchase Agreement with Banc of America Public Capital Corp; approve
the MELPA and related documents therein with BAPCC; and authorize the City Controller to sign and
execute the agreements and all related required documents. This agreement is necessary to provide
lease-purchase financing of City equipment.
EXECUTIVE SUMMARY
The City has utilized a Master Equipment Lease Purchase Agreement (MELPA) for several years. A
MELPA provides a ready-to-use mechanism to finance equipment purchases over time. The City’s
previous MELPA expired on December 31, 2024. Staff conducted a procurement process to find a
lender that would finance a new MELPA. As a result of that process, it is recommended that the
Council approve a new MELPA with Banc of America Public Capital Corp (BAPCC). Proceeds from
this MELPA will be used to fund upcoming equipment purchases which will be approved as part of
current and future Adopted Budgets, and other equipment as approved by the City Council.
BACKGROUND
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01-30-2025
APPROVED ON CONSENT
R. 2025-18
MA/AP 6-0
DISTRICT 5 (VACANT) ABSENT
File #:ID 25-148 Agenda Date:1/30/2025 Agenda #:
2.-H.
A MELPA is a common form of financing that the City has utilized for several years to lease-purchase
fire apparatus,police vehicles (including helicopters),telecommunications,computers,building
improvements,and software licenses.The MELPA does not approve the purchase of this equipment
nor authorize the financing of any equipment.It simply provides a mechanism to fund equipment
once approval for purchase and authorization to finance is given by the City Council.A new MELPA is
needed to succeed the City’s previous MELPA, which expired on December 31, 2024.
On October 14,2024,the City requested proposals for a Master Equipment Lease Purchase
Agreement (“MELPA”)from local,regional and national financing institutions.There were 16 firms
asked to submit a proposal;including local firms;six of whom have previously solicited the City for
these types of services.Five proposals were received on or before the deadline.BAPCC’s proposal
offers the same rapid timelines for financing that were in the previous MELPA,and responded with
the most competitive overall proposal.Because of their competitive pricing and their overall
response,City staff is recommending the selection of BAPCC to provide a MELPA and associated
services to the City.
The proposed MELPA with BAPCC will provide for lease financing of City needs over the next four
years,up to a maximum aggregate leasing of $55 million.The contract also provides for two 1-year
extensions by mutual agreement.In that this MELPA is intended to meet the City’s equipment
financing needs over this time frame,the lease rate has been structured so that the rate is set each
time the City needs to lease purchase equipment.The lease rate is set by adding a fixed percentage
(Rate Spread)to 79%of the Average-Life Swap Rate (Index)for the number of years approved by
the Council on each individual lease.A structure of this type is common and provides the lessor and
lessee with market-level lease rates at the time a lease purchase is transacted.
The City Attorney’s Office has reviewed the MELPA and approved to form.It is on file with the City
Clerk’s Office for review.
ENVIRONMENTAL FINDINGS
By definition of the California Environmental Quality Act (CEQA)Guidelines Section 15378,this
action of these items does not qualify as a project as defined by CEQA.
LOCAL PREFERENCE
Local preference has been considered in the evaluation of the documents and pricing.
FISCAL IMPACT
Adopting the resolution approving the MELPA allows the City Departments to finance certain
equipment through lease-purchase under this agreement,subject to meeting any competitive
procurement,budgeting,and appropriation requirements.There is no concurrent fiscal impact.Not
approving the resolution will require the City to reconsider certain acquisitions or find alternative
funding sources or methods to purchase items.
Attachments:
City of Fresno Printed on 2/7/2025Page 2 of 3
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File #:ID 25-148 Agenda Date:1/30/2025 Agenda #:
2.-H.
Master Equipment Lease Purchase Agreement
Resolution
Escrow Agreement Template
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MASTER EQUIPMENT LEASE-PURCHASE AGREEMENT
Agreement No.:
Date: January 30, 2025
LESSEE:
City of Fresno, a California municipal
corporation
2600 Fresno Street
Fresno, California 93721
LESSOR:
Banc of America Public Capital Corp, a
Kansas corporation
11333 McCormick Road
Hunt Valley, Maryland 21031
For and in consideration of the mutual promises and agreements herein contained, and
other good valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:
1.Definitions. Unless the context otherwise clearly requires, the following terms shall
have the respective meanings set forth below for all purposes of this Agreement and of each
Lease:
“Acceptance Certificate” means a certificate in substantially the form attached as Exhibit
A-1 to each Lease and which shall be delivered by Lessee to Lessor upon receipt and
acceptance of the Equipment subject to such Lease as provided therein.
“Acquisition Period” means the period commencing on the execution of this Agreement
and, unless mutually extended as provided herein, ending on the earlier of (a) December 31,
2028, or (b) the aggregate leasing of $55,000,000 (Fifty-five Million Dollars) of Equipment, or
(c) the occurrence of a Material Adverse Change (as defined below). During the Acquisition
Period of this Agreement, there will be an initial amount of financing of (i) $25,000,000.00 from
the date of execution of this Agreement until June 30, 2026, $20,000,000.00 from July 1, 2026
until June 30, 2027, and $10,000,000.00 from July 21, 2027 until December 31, 2028, each
amount a “Lease Line” and period an “Annual Period”, all subject to satisfactory completion of
the Lessor’s credit review and approval process on an annual basis, which approval may be
withheld by Lessor only in the event that Lessee’s rating by Moody’s or Standard & Poor’s has
been downgraded two or more levels from Lessee’s rating as of the date of the execution of this
Agreement. Any unutilized Lease Line from a prior Annual Period may be carried over into
subsequent Annual Periods. Lessor and Lessee by mutual consent may extend this Agreement
for two successive one-year acquisition periods for an amount to be determined upon mutual
agreement, subject to satisfactory completion of the Lessor’s credit and pricing reviews and
approval processes on an annual basis, for which credit approval may be withheld by Lessor
only in the event that Lessee’s rating by Moody’s or Standard & Poor’s has been downgraded
two or more levels from Lessee’s rating as of the date of the execution of this Agreement. Any
extension shall be memorialized in a written amendment duly executed by Lessor and Lessee.
Based on the needs of the Lessee, the amounts set forth above for annual financing can be
54620
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400872v2
increased upon mutual agreement, subject to satisfactory completion of the Lessor’s credit
review and approval process on an annual basis, which approval may be withheld by Lessor
only in the event that Lessee’s rating by Moody’s or Standard & Poor’s has been downgraded
two or more levels from Lessee’s rating as of the date of the execution of this Agreement.
“Additional Payments” means any amounts (other than Rental Payments) required to be
paid by Lessee pursuant to the terms of each Lease.
“Agreement” means this Master Equipment Lease-Purchase Agreement, as
supplemented and amended from time to time as herein provided.
“Code” means the Internal Revenue Code of 1986, as it may be amended from time to
time. Each reference to a section of the Code herein shall be deemed to include the United
States Treasury Regulations proposed or in effect thereunder.
“Agreement Documents” means the “Notice Inviting Proposals,” “Instructions to
Proposers,” “Proposal” and the “Specifications” for the following: Master Equipment Lease
Purchase Agreement Request for Proposals No. 12500414.
“Equipment” means (a) the equipment, vehicles, aircraft and other personal property
identified in each Schedule, (b) any property acquired in substitution, renewal, repair or
replacement for, or as additions, improvements, accessions and accumulations to, any of such
equipment and (c) any accessories, equipment, vehicles, aircraft and other personal property,
parts and appurtenances appertaining or attached to any of such equipment, vehicles, aircraft
and other personal property or from time to time incorporated therein or installed thereon.
“Event of Default” is defined in Paragraph 24 of this Agreement.
“Event of Non-appropriation” means the failure of the City Council to appropriate money
for any Fiscal Year of Lessee sufficient for the continued performance by Lessee of all of
Lessee’s obligations under a Lease.
“Fiscal Period” means the annual period used from time to time by Lessee for its financial
accounting and budgeting purposes. Lessee’s current Fiscal Period is identified in each
Schedule.
“Index” means the then current Secured Overnight Financing Rate (“SOFR”) average-life
SWAP Rate as set forth below and as applicable to two, three, four, five, six, seven, eight, nine,
ten and fifteen year terms each. Index for two year term is the one-year SWAP Rate x 79%, for
three and four year terms is two-year SWAP Rate x 79%, for five and six year terms is three-
year SWAP Rate x 79%, for seven and eight year terms is four-year SWAP Rate x 79%, for nine
year term is five-year SWAP Rate x 79%, for ten-year term is six-year SWAP x 79%, and for
fifteen-year term is nine-year SWAP x 79%. If the SOFR average-life SWAP Rates are
discontinued, then the Lessor and Lessee shall agree to substitute a comparable source of
information. During any period of time that the Index would be below zero percent (0%), the
Index shall be deemed to be zero percent (0%) for the purposes of calculating the interest rate
and Rental Payments for a Schedule.
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In the event the SOFR-based swap index ceases (a) to be determined, (b) to be a
representative index for approximating movements in Lessor’s costs of funding fixed-rate
transactions, or (c) to be the generally accepted swap index in the marketplace (each, a “Rate
Exchange Event”), Lessor may, by mutual consent of Lessor and Lessee, in its discretion use a
replacement swap index applicable to U.S. Dollar collateralized funding that is generally
accepted in the interbank credit marketplace as a comparable substitute for the SOFR-based
swap and adjust the applicable Spread Bid, if necessary, in order for the calculated rate to be
comparable to the rate based on the SOFR-based swap index.
“Initial Term” means, with respect to each Lease, the period determined as provided in
Paragraph 3 hereof.
“Lease” means a Schedule and the terms of this Agreement which are incorporated by
reference into such Schedule, together with the Exhibits attached to each such Schedule.
“Legally Available Funds” means funds that the governing body of Lessee duly
appropriates and are legally available for the purpose of making Payments under each Lease.
“Lessee” means the entity referred to as Lessee in the heading for this Agreement.
“Lessor” means (a) the entity referred to as Lessor in the heading for this Agreement or
(b) any assignee or transferee of any right, title or interest of Lessor in and to any Lease
(including Rental Payments and the Equipment thereunder) pursuant to Paragraph 27 hereof,
but does not include any entity solely by reason of that entity’s retaining or assuming any
obligation of Lessor to perform under any Lease.
“Material Adverse Change” means that the Lessee’s general obligation bonds credit rating
(or if no general obligation bonds are currently rated, then the issuer’s long-term credit rating)
without regard to credit enhancements, has been reduced two or more levels from Lessee’s
rating as of the date of the execution of this Agreement by Moody’s Investors Service or Standard
& Poor’s Ratings Group (or any successor to either such rating agency).
“Net Proceeds” means the amount remaining from the gross proceeds of any insurance
claim or condemnation award after deducting all expenses (including reasonable attorneys’ fees)
incurred in the collection of such claim or award.
“Notification Date” means the date as of which the Index is established for each Lease.
The Notification Date for each Lease shall be set forth in the applicable Schedule.
“Payments” means, with respect to each Lease, the Rental Payments and the Additional
Payments thereunder, collectively.
“Prepayment Option Amount” means, with respect to each Lease for which a Prepayment
Option Amount is identified under the column titled “PREPAYMENT OPTION AMOUNT” on the related
Schedule, the amount determined pursuant to such Lease at which Lessee may prepay the
aggregate principal component of Rental Payments thereunder on any Rental Payment date
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provided in such Lease prior to the scheduled payment of all Rental Payments to be paid
thereunder for the Equipment identified therein.
“Purchase Price” means, with respect to each Lease, the total cost of the Equipment
subject to such Lease, including all delivery charges, installation charges, capitalizable
consulting and training fees, legal fees, financing costs, motor vehicle registration fees, recording
and filing fees and other costs necessary to vest full, clear legal title to such Equipment in
Lessee, subject to the security interest granted to and retained by Lessor as set forth in such
Lease, and otherwise incurred in connection with the financing provided by the lease-purchase
of the Equipment as provided in such Lease.
“Renewal Term” means, with respect to each Lease, each successive period, in addition
to the applicable Initial Term, that is coextensive with Lessee’s Fiscal Period and for which
Lessee has extended the term of such Lease as provided therein.
“Rental Payments” means, with respect to each Lease, the amounts (allocable to a
principal component, and an interest component) payable by Lessee pursuant to such Lease,
as payments for the installment financing of the Purchase Price for the Equipment as set forth
in such Lease. The interest component of Rental Payments shall be a fixed rate of interest
established on the Notification Date of each Lease by adding the Spread Bid to the Index
published for the term on the Notification Date.
“Schedule” means a Lease Schedule in substantially the form attached to this Agreement
as Exhibit A that may be executed by Lessor and Lessee from time to time pursuant to this
Agreement.
“Spread Bid” means the spread in basis points (“bps.”) bid by the Lessor which is to be
applied to the Index in the calculation of the Rental Payments in a Lease. The Spread Bid for
leases of a two-year term is +47.69 bps., the Spread Bid for leases of a three-year term is +61.22
bps., the Spread Bid for leases of a four-year term is +56.21 bps., the Spread Bid for leases of
a five-year term is +64.10 bps., the Spread Bid for leases of a six-year term is +65.37 bps., the
Spread Bid for leases of a seven-year term is +71.37 bps., the Spread Bid for leases of an eight-
year term is +84.06 bps., the Spread Bid for leases of a nine-year term is +90.49 bps., the Spread
Bid for leases of a ten-year term is +91.94 bps., the Spread Bid for leases of a fifteen-year term
is 122.62 bps. Upon the occurrence of a Rate Exchange Event, the Spread Bid amounts set
forth in the previous sentence may, by mutual consent of Lessor and Lessee, be revised by the
Lessor to conform with the replacement SWAP Rate in order for the calculated rate to be
comparable to the rate based on the SOFR-based swap index.
“State” means the State of California.
2. Agreement to Lease-Purchase Equipment Under Each Lease . Lessee hereby
agrees to acquire, purchase and lease all of the Equipment identified in each of the Schedules
that may from time to time be executed by Lessor and Lessee pursuant hereto, and Lessor
hereby agrees to furnish the Equipment under each such Schedule to Lessee, all on the terms
and conditions set forth in this Agreement. Each Schedule executed and delivered by Lessor
and Lessee pursuant to this Agreement shall constitute a separate and independent Lease. The
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termination of a Lease as a consequence of an Event of Non-appropriation shall not terminate
any other Lease.
Lessor is committed to enter into Leases identified in the Agreement Documents during
the Acquisition Period on the terms and conditions provided in this Agreement so long as (a) the
Equipment identified in a Schedule (i) is of the type generally described in Lessee’s request for
proposals related to this Agreement (such as copiers, furniture, public safety equipment, vehicles
[including aircraft] and other capital equipment for general governmental purposes), and (ii)
constitutes a capital asset that can be financed on a federally tax-exempt basis over the term
stated in such Schedule; and (b) no Material Adverse Change has occurred.
Alternative Procedure: Escrow Agreement. Notwithstanding the provisions in this
Paragraph 2, if upon agreement by Lessor and Lessee as to any Equipment to be acquired and
leased by Lessee under a Lease, Lessor and Lessee may enter into an escrow agreement in
substantially the form attached as Exhibit B establishing a fund from which the Equipment cost
is to be paid, and an amount equal to such cost is deposited therein by Lessor. Lessor and
Lessee shall immediately complete and execute Exhibits A and B relating to the Equipment and
the Payments relating to the Equipment shall be due and payable commencing upon the date of
said deposit of funds as provided in Exhibit A.
3. Term. The term of this Agreement begins as of the date set forth above and will
continue so long as any amount remains unpaid under any Lease. The Initial Term of each
Lease begins as of the date identified in such Lease and expires at midnight on the last day of
the Fiscal Period during which such Lease is executed and delivered. Beginning at the expiration
of its Initial Term, the term of each Lease shall automatically be extended upon the successive
appropriation by Lessee’s governing body of amounts sufficient to pay Rental Payments and
reasonably estimated Additional Payments during the next succeeding Renewal Term, for the
number of Renewal Terms, each coextensive with Lessee’s Fiscal Period, as are necessary for
all Rental Payments identified in the applicable Schedule to be paid in full, unless such Lease is
terminated as provided therein.
The term of each Lease will expire upon the first to occur of (a) the expiration of the Initial
Term or any Renewal Term of such Lease during which an Event of Non-appropriation occurs,
(b) the day after the last scheduled Rental Payment under such Lease is paid in full, (c) the day
after the Prepayment Option Amount under such Lease is paid in full or (d) an Event of Default
under such Lease and a termination of Lessee’s rights thereunder as provided therein.
The term of this Agreement for purposes of the signing of Leases shall be the Acquisition
Period.
4. Rental Payments. Lessee hereby agrees to pay (but only from Legally Available
Funds) Rental Payments for the Equipment identified in each Schedule. All Rental Payments
shall be made to Lessor at Lessor’s mailing address set forth above (or at such other address
as may be designated from time to time pursuant to Paragraph 27 hereof) in the amounts and
on the dates provided in the pertinent Schedule. Rental Payments made by check will be
accepted subject to collection.
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Lessee’s obligation under each Lease to make Rental Payments and to pay any
Additional Payments thereunder constitutes a current obligation payable exclusively from Legally
Available Funds and shall not be construed to be an indebtedness within the meaning of any
applicable constitutional or statutory limitation or requirement. Lessee has not pledged its full
faith and credit or its taxing power to make any Rental Payments or Additional Payments under
any Lease. Lessee shall not permit any person or entity (including the federal government) to
guarantee any Rental Payments under any Lease.
5. Agreement to Seek Appropriations; Notice of Event of Nonappropriation. Lessee
agrees that its primary business official will do all things lawfully within such official’s power (a)
to include amounts to make Payments under each Lease in each annual or biennial budget (as
appropriate) to be submitted to Lessee’s governing body and (b) and to maintain and utilize any
such amounts appropriated in any given Fiscal Period for the purpose for which those funds
were appropriated.
Lessee hereby agrees to notify Lessor immediately (and in no case later than thirty days
prior to the last day of its then current Fiscal Period) of the occurrence of an Event of Non-
appropriation under any Lease. It is understood that neither this Agreement nor any
representation by any public employee or officer creates any legal or moral obligation to
appropriate or make moneys available for the purpose of this Agreement.
6. Prepayment Option. Lessee is hereby granted the option to prepay (in whole but not
in part) the aggregate principal component of Rental Payments identified in a Lease, prior to the
scheduled payment of the Rental Payments in full pursuant to such Lease, with such prepayment
permitted to be made on any Rental Payment date for which a Prepayment Option Amount is
identified under the column titled “PREPAYMENT OPTION AMOUNT” in the applicable Schedule.
Assuming that all Rental Payments and Additional Payments due under such Lease on and prior
to the prepayment date have been paid, such prepayment amount shall equal the Prepayment
Option Amount shown for the Rental Payment date on which such prepayment is to be effective
under the column titled “PREPAYMENT OPTION AMOUNT” in the applicable Schedule. To exercise
the option provided in this Paragraph 6 and granted in a Lease, Lessee shall give Lessor a
written notice exercising such option and designating the affected Lease, the Rental Payment
date on which such prepayment is to be effective and the applicable Prepayment Option Amount,
which notice shall be delivered to Lessor at least thirty days in advance of the proposed
prepayment date. The prepayment option herein granted may be exercised by Lessee with
respect to a Lease whether or not one or more Events of Default have occurred and are then
continuing under such Lease at the time of such exercise; provided, however, that the
prepayment of such principal component of Rental Payments under the applicable Lease upon
the exercise of such option during the continuance of an Event of Default thereunder shall not
limit, reduce or otherwise affect liabilities or obligations that Lessee has incurred as a result of
such Event of Default.
Immediately upon any such prepayment’s being made or the last scheduled Rental
Payment under the Lease is paid in full, Lessor shall execute all documents necessary to confirm
in Lessee title in and to the Equipment under the affected Lease, free and clear of any lien,
encumbrance or other interest created by Lessor, but without warranties and in “As Is, Where
Is” condition, and to release Lessor’s security interest in such Equipment, and Lessor shall
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deliver such documents to Lessee. Lessor shall further cooperate in providing for the filing of
any necessary releases, termination statements or other similar documents and the release of
certificates of title or certificates of origin to Lessee.
7. Essentiality. Lessee’s present intention is to make Rental Payments and Additional
Payments under each Lease for the Initial Term and all Renewal Terms applicable thereto as
long as it has Legally Available Funds. In that regard, Lessee represents with respect to each
Lease that at the time Lessee enters into each Lease (a) the use and operation of the Equipment
under each Lease is essential to its proper, efficient and economic governmental operation and
(b) Lessee does not have other equipment or does not have sufficient equipment available to
perform the same functions as the Equipment. Lessee does not intend to sell or otherwise
dispose of the Equipment or any interest therein prior to the last Rental Payment scheduled
(including all applicable Renewal Terms) to be paid under the pertinent Lease. To the extent
that Lessee may ultimately decide to use other equipment for the same purpose for which
Lessee leased equipment under any given Lease for the benefit of the health, safety and welfare
of the public, such decision shall not be considered an Event of Default nor a material
misrepresentation under this Agreement.
8. Reserved.
9. Delivery and Installation. Lessee shall select the type, quantity and supplier of each
item of Equipment designated in a Schedule. Once Lessor and Lessee have executed the
related Lease, Lessee (as Lessor’s agent for this purpose) shall then order the Equipment
identified in such Lease from such supplier. Any executed purchase order existing at the time
of the execution of a Lease, and relating to any portion of the Equipment therein identified that
has not as of such Lease execution date been delivered and installed, shall be deemed to have
been executed by Lessee in its capacity as Lessor’s agent for purposes of such Lease. Lessor
shall have no liability for any delay in delivery or failure by the supplier to deliver any Equipment
under any Lease or to fill any purchase order or meet the conditions thereof. Lessee, at its
expense, will pay or cause the supplier to pay all transportation, packing, taxes, duties,
insurance, installation, testing and other charges in connection with the delivery, installation and
use of the Equipment under all Leases. As soon as practicable after receipt of the Equipment
identified in a Lease, Lessee shall furnish Lessor with an executed Acceptance Certificate
relating thereto. Execution of an Acceptance Certificate with respect to the Equipment identified
in a Lease by any employee, official or agent of Lessee having authority in the premises or
having managerial, supervisory or procurement duties with respect to equipment of the same
general type as the Equipment described in such Acceptance Certificate shall constitute
acceptance of such Equipment on behalf of Lessee. By making a Rental Payment after its
receipt of the Equipment identified in a Lease, regardless of whether Lessee has furnished an
Acceptance Certificate with respect to such Equipment as herein provided, Lessee shall be
deemed to have accepted such Equipment on the date of such Rental Payment for all purposes
of such Lease. All Rental Payments paid prior to the delivery of an Acceptance Certificate with
respect to the Equipment identified in a Lease shall be credited to Rental Payments as they
become due under such Lease.
Lessee understands and agrees that neither the manufacturer, seller, nor supplier of any
Equipment under any Lease, nor any salesman or other agent of any such manufacturer, seller
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or supplier, is an agent of Lessor. No salesman or agent of the manufacturer, seller or supplier
of any Equipment under any Lease is authorized to waive or alter any term or condition of any
such Lease, and no representation as to Equipment or any other matter by the manufacturer,
seller or supplier of any Equipment under any Lease shall in any way affect Lessee’s duty to pay
the Rental Payments thereunder and perform its other obligations as set forth in such Lease.
Lessee hereby acknowledges that it has or will have selected the Equipment identified in each
Schedule using its own criteria and not in reliance on any representations of Lessor.
10. Disclaimer of Warranties. LESSOR, NOT BEING THE MANUFACTURER, SELLER OR
SUPPLIER OF ANY OF THE EQUIPMENT UNDER ANY LEASE, NOR A DEALER IN ANY OF SUCH
EQUIPMENT, HAS NOT MADE AND DOES NOT MAKE ANY WARRANTY, REPRESENTATION OR
COVENANT, EXPRESS OR IMPLIED, AS TO ANY MATTER WHATSOEVER, INCLUDING BUT NOT
LIMITED TO: THE MERCHANTABILITY OF THE EQUIPMENT OR ITS FITNESS FOR ANY
PARTICULAR PURPOSE, THE DESIGN OR CONDITION OF THE EQUIPMENT, THE QUALITY OR
CAPACITY OF THE EQUIPMENT, THE WORKMANSHIP IN THE EQUIPMENT, THE COMPLIANCE
OF THE EQUIPMENT WITH THE REQUIREMENT OF ANY LAW, RULE, SPECIFICATION OR
CONTRACT PERTAINING THERETO, PATENT INFRINGEMENT OR LATENT DEFECTS. Lessee
accordingly agrees not to assert any claim whatsoever against Lessor based thereon.
Specifically as to any Disclaimer of Warranties by Lessor under this Paragraph 10, Lessee
further agrees, regardless of cause, not to assert any claim whatsoever against Lessor for any
direct, indirect, consequential, incidental or special damages or loss of any classification related
to such warranties. Lessor shall have no obligation to install, erect, test, adjust, service or
maintain any Equipment under any Lease. Lessee shall look solely to the manufacturer, seller
and/or supplier for any and all claims related to any and all of the Equipment. AS TO LESSOR
(NOT AS TO ANY VENDOR/ MANUFACTURER/ EQUIPMENT SELLER), LESSEE ACQUIRES,
PURCHASES AND LEASES THE EQUIPMENT “AS IS, WHERE IS” AND “WITH ALL FAULTS.”
Lessor hereby acknowledges that, so long as no Event of Default or Event of
Nonappropriation has occurred and is continuing under a Lease, the warranties (if any) of the
manufacturer, seller and/or supplier of the Equipment under such Lease are for the benefit of
Lessee.
11. Title to Equipment. During the term of each Lease, title to the Equipment identified
therein shall be vested in Lessee, subject to the rights of Lessor under such Lease, unless
Lessor terminates such Lease pursuant to Paragraph 25 hereof as provided in such Lease or
an Event of Nonappropriation occurs with respect to such Lease, in which event title to the
Equipment identified in such Lease shall immediately vest in Lessor free and clear of any right,
title or interest of Lessee. Lessee, at its expense, will protect and defend Lessee’s title to the
Equipment identified in each Lease and Lessor’s rights and interests therein and will keep the
Equipment under each Lease free and clear from any and all claims, liens, encumbrances and
legal processes of Lessee’s creditors and other persons. All items of Equipment shall at all times
be and remain personal property notwithstanding that any such Equipment may now or hereafter
be affixed to realty.
12. Tax Covenants; Tax Indemnity Payments. Lessee agrees that it will not take any
action that would cause the interest component of Rental Payments under any Lease to be or
to become ineligible for the exclusion from gross income of the owner or owners thereof for
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federal income tax purposes, nor will it omit to take or cause to be taken, in a timely manner,
any action, which omission would cause the interest component of Rental Payments under any
Lease to be or to become ineligible for the exclusion from gross income of the owner or owners
thereof for federal income tax purposes. Lessee agrees to (a) execute and deliver to Lessor
with respect to each Lease, upon Lessor’s request, a tax certificate and agreement in form and
content acceptable to Lessor and Lessee, relating to the establishment and maintenance of the
excludability from gross income of the interest component of Rental Payments under such Lease
for federal income tax purposes, and (b) complete and file or cause to be filed in a timely manner
an information reporting return (either I.R.S. Form 8038-G or I.R.S. Form 8038-GC, as
appropriate) in the form attached as Exhibit A-2 to each Lease with respect to such Lease as
required by the Code.
Lessee represents that neither Lessee nor any agency or unit of Lessee has on hand any
property, including cash and securities, that is legally required or would otherwise be considered
restricted under the Code or any United States Treasury Regulations (no matter where held or
the source thereof) to purchase, directly or indirectly, the Equipment under any Lease. Lessee
has not established and will not establish any funds or accounts (no matter where held or the
source thereof) which would be construed as “replacement proceeds” or a “sinking fund” under
Sections 1.148-1(c)(1) and (c)(2) and any related or replacement provisions of the U.S. Treasury
Regulations or the Code for paying Rental Payments, directly or indirectly.
If Lessee breaches the covenant contained in this Paragraph 12 as provided in a Lease,
the interest component of Rental Payments under such Lease may become includible in gross
income of the owner or owners thereof for federal income tax purposes. In such event, Lessee
agrees to pay to Lessor, promptly after any such determination of taxability by a court of
competent jurisdiction, and on each Rental Payment date thereafter, an additional amount
determined by Lessor to compensate such owner or owners for the loss of such excludability
(including, without limitation, compensation relating to interest expense, penalties or additions
to tax), which determination shall be conclusive (absent manifest error). Notwithstanding
anything herein to the contrary, any additional amount payable by Lessee pursuant to this
Paragraph 12 as provided in a Lease shall be payable solely from Legally Available Funds.
It is Lessor’s and Lessee’s intention that each Lease not constitute a “true” lease for
federal income tax purposes, and therefore, it is Lessor’s and Lessee’s intention that Lessee be
considered the owner of the Equipment under each Lease for federal income tax purposes.
13. Use of Equipment, Inspection and Reports. During the term of each Lease, Lessee
shall be entitled to quiet enjoyment of the Equipment identified therein and may possess and
use the Equipment in accordance with such Lease, provided that Lessee is in compliance in all
respects with the terms of such Lease and that such possession and use are in conformity with
all applicable laws, any insurance policies and any installation requirements (including
environmental specifications) or warranties of the manufacturer, seller and/or supplier with
respect to the Equipment identified in such Lease. Lessee shall provide all permits and licenses,
if any, necessary for the installation and operation of the Equipment under each Lease. Lessor
shall have the right, upon reasonable prior notice to Lessee and during regular business hours,
to inspect the Equipment at the premises of Lessee or wherever the Equipment may be located.
Lessee shall promptly notify Lessor of any alleged encumbrances on the Equipment identified
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in any Lease or any accident allegedly resulting from the use or operation thereof or any claim
relating thereto.
During the term of each Lease and at Lessor’s request, Lessee shall provide Lessor, on
or before September 30th of any calendar year (commencing with Lessee’s current Fiscal
Period), with current budgets or other proof of appropriation for the ensuing Fiscal Period and
such other information relating to Lessee’s ability to continue the term of each Lease for the next
succeeding Renewal Term as may be reasonably requested by Lessor. In the event Lessee
shall have failed to approve its budget by July 10 of any calendar year and upon proof of such
failure by Lessee, Lessor shall grant to Lessee a reasonable extension of time within which
Lessee must provide the proof of appropriation described in this Paragraph 13.
During the term of each Lease, Lessee shall furnish or cause to be furnished to Lessor,
at Lessee’s expense, as soon as available and in any event not later than 270 days after the
close of each Fiscal Period, the audited financial statements of Lessee as at the close of and for
such Fiscal Period, all in reasonable detail, audited by and with the report of Lessee’s auditor.
14. Security Agreement; Further Assurances. To secure the performance of all of
Lessee’s obligations under each Lease, Lessee grants to Lessor, and Lessor shall have and
retain, a security interest constituting a first and exclusive lien on the Equipment delivered under
each respective Lease, on all attachments, repairs, replacements and modifications thereto or
therefor and on any proceeds therefrom. Lessee agrees to execute and deliver such additional
documents, including, without limitation, financing statements, certificates of title or certificates
of origin (or applications therefor) noting Lessor’s interest thereon, opinions of counsel, notices
and similar instruments, in form satisfactory to Lessor, which Lessor deems necessary or
appropriate to establish and maintain its security interest in the Equipment under each Lease or
for the confirmation or perfection of each Lease and Lessor’s rights under each Lease. Upon
the occurrence of an Event of Default or an Event of Nonappropriation under a Lease or if Lessee
refuses or is otherwise unwilling to execute and file financing statements to which Lessor is
entitled in accordance with such Lease within ten days after Lessor’s written request to Lessee
therefor, Lessor is authorized to file financing statements signed only by Lessor in accordance
with the applicable Uniform Commercial Code or signed by Lessor as Lessee’s attorney-in-fact.
15. Risk of Loss. All risk of loss, damage, theft or destruction to each item of Equipment
under each Lease shall be borne by Lessee. No such loss, damage, theft or destruction of the
Equipment under any Lease, in whole or in part, shall impair the obligations of Lessee under any
Lease (including, but not limited to, the obligation to pay Rental Payments under each such
Lease when due), all of which shall continue in full force and effect subject to the terms of the
applicable Lease. If (a) the Equipment or any portion thereof under a Lease is destroyed (in
whole or in part) or is damaged by fire or other casualty or (b) title to, or the temporary use of,
the Equipment or any part thereof under a Lease is taken under the exercise of the power of
eminent domain, Lessee shall immediately notify Lessor. Lessee and Lessor shall cause the
Net Proceeds of any insurance claim or condemnation award to be applied, at Lessor’s option,
to (i) the prompt repair, restoration, modification or replacement of the Equipment so affected or
(ii) the payment in full of the then applicable Prepayment Option Amount. Any balance of Net
Proceeds remaining after completion of such work or payment of such Prepayment Option
Amount shall be paid promptly to Lessee. If the Net Proceeds are insufficient to pay the costs
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of such repair, restoration, modification or replacement or to pay such Prepayment Option
Amount in full, Lessee shall, at Lessor’s direction, either complete the work or pay the then
applicable Prepayment Option Amount in full and in either case pay any cost in excess of the
amount of Net Proceeds, but only from Legally Available Funds.
16. Insurance. If Lessee is not self-insured as hereinafter provided, Lessee, at its
expense, shall throughout the term of each Lease keep the Equipment thereunder insured
against theft, fire, collision (in the case of vehicles) and such other risks as may be customary
for each item of Equipment, under a policy or policies containing a loss payable endorsement in
favor of Lessor. The policy required hereby shall provide that they may not be canceled or
materially altered without at least thirty days’ prior written notice to Lessor. Lessee shall deliver
to Lessor a certificate of insurance in evidence of each insurance policy and each renewal
thereof. Failure by Lessor to request evidence of such insurance policies or renewals, or
otherwise to verify the existence of such insurance, shall not constitute a waiver of the
requirements hereof. If Lessee is self-insured with respect to equipment such as the Equipment
under a Lease, Lessee shall maintain during the term of such Lease an actuarially sound self-
insurance program and shall provide evidence thereof to Lessor.
17. Maintenance and Repairs. Lessee shall use the Equipment under each Lease in a
careful and proper manner, in compliance with all applicable laws and regulations and, at its
expense, keep and maintain the Equipment under each Lease in good repair and working order,
performing all maintenance and servicing necessary to maintain the value and utility of the
Equipment, reasonable wear and tear excepted. Without the prior written consent of Lessor,
Lessee shall not make any alterations, modifications or attachments to the Equipment under any
Lease which cannot be removed without materially damaging the functional capabilities,
economic value or utility of such Equipment.
18. Taxes. Unless Lessee has provided Lessor with evidence necessary to sustain an
exemption therefrom, Lessee shall timely pay all assessments, license fees, taxes (including
sales, use, excise, personal property, ad valorem, stamp, documentary and other taxes) and all
other governmental charges, fees, fines or penalties whatsoever, whether payable by Lessor or
Lessee, now or hereafter imposed by any governmental body or agency on or relating to the
Equipment under each Lease, the Rental Payments under each Lease (to the extent such Rental
Payments are appropriated by Lessee) or the use, registration, rental, shipment, transportation,
delivery, ownership or operation of the Equipment under each Lease and on or relating to each
Lease; provided, however, that the foregoing shall not include any federal, state or local income
or franchise taxes of Lessor.
19. Lessor’s Performance of Lessee’s Obligations. If Lessee shall fail duly and promptly
to perform any of its obligations under a Lease, Lessor may, at its option, perform any act or
make any payment that Lessor deems necessary for the maintenance and preservation of the
Equipment under such Lease and Lessor’s interests therein, including, but not limited to,
payments for satisfaction of liens, repairs, taxes, levies and insurance. All expenses incurred by
Lessor in performing such acts and all such payments made by Lessor and any reasonable
attorneys’ fees and expenses incurred by Lessor in connection therewith, shall be payable by
Lessee to Lessor on demand. The performance of any act or payment by Lessor as aforesaid
shall not be deemed a waiver or release of any obligation or default on the part of Lessee. In
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the Event of Non-appropriation any obligations of Lessee under this Paragraph 19 shall be
limited to costs or liability incurred by Lessor to the end of the Fiscal Period represented by the
last Renewal Term or the end of the last Fiscal Period for which Lessee appropriated revenues
necessary to pay for Rental Payments under this Agreement, whichever is earlier.
20. Reserved.
21. Reserved.
22. No Offset; Unconditional Obligation. Except as provided in Paragraph 3, or in the
Event of Non-appropriation, the obligation of Lessee to make Rental Payments or any other
Payments required hereunder shall be absolute and unconditional in all events. Notwithstanding
any dispute between Lessee and Lessor or between Lessee and an Equipment vendor or
manufacturer or any other person, Lessee shall make all Rental Payments and other payments
required hereunder when due and shall not withhold any Rental Payment or other payment
pending final resolution of such dispute nor shall Lessee assert any right of set-off or
counterclaim against its obligation to make Rental Payments or other payments required
hereunder. Lessee’s obligation to make Rental Payments shall not be abated through accident,
unforeseen circumstances, failure of the Equipment to perform as desired, damage or
destruction to the Equipment, loss of possession of the Equipment or obsolescence of the
Equipment.
23. Representations and Warranties of Lessee. Lessee hereby represents and warrants
to and agrees with Lessor that:
(a) Lessee is a state or a political subdivision thereof within the meaning of
Section 103(c) of the Code.
(b) Lessee has the power and authority under applicable law to enter into the
transactions contemplated by this Agreement and each Lease and has been duly
authorized to execute and deliver this Agreement and each Lease and to carry out its
obligations under each Lease. Attached to each Lease as Exhibit A-3 is a full, true and
correct copy or an original of a resolution or other appropriate official action of Lessee’s
governing body specifically authorizing Lessee to execute and deliver this Agreement and
the applicable Lease. Attached to each Lease as Exhibit A-4 is a full, true and correct
copy or an original of an Incumbency Certificate relating to the authority of the officers
who have executed and delivered, or will execute and deliver, this Agreement and the
applicable Lease on behalf of Lessee. Attached to each Lease as Exhibit A-5 is a full,
true and correct copy or an original of an opinion of Lessee’s legal counsel regarding the
legal, valid and binding nature of this Agreement and each Lease on Lessee and certain
other related matters. For any Lease that is funded under this Agreement in the amount
of $5,000,000.00 or more, Lessor may require Lessee to deliver an opinion from its bond
counsel to the effect that the interest component of the Rental Payment is not includable
in the gross income of Lessor.
(c) All requirements have been met and procedures have occurred in order to
ensure the enforceability of this Agreement and each Lease, and Lessee has complied
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with such public bidding requirements, if any, as may be applicable to the transactions
contemplated by this Agreement and each Lease.
(d) Lessee is not subject to any legal or contractual limitation or provision of
any nature whatsoever that in any way limits, restricts or prevents Lessee from entering
into this Agreement or any Lease or performing any of its obligations under this
Agreement or any Lease, except to the extent that such performance may be limited by
bankruptcy, insolvency, reorganization or other laws affecting creditors’ rights generally.
(e) There is no action, suit, proceeding, inquiry or investigation, at law or in
equity, before or by any court, public board or body, known to be pending or threatened
against or affecting Lessee, nor to the best knowledge of Lessee is there any basis
therefor, wherein an unfavorable decision, ruling or finding would materially adversely
affect the transactions contemplated by this Agreement, any Lease or any other
agreement or instrument to which Lessee is a party and which is used or contemplated
for use in the consummation of the transactions contemplated by this Agreement or any
Lease. All authorizations, consents and approvals of governmental bodies or agencies
required in connection with the execution and delivery by Lessee of this Agreement and
each Lease or in connection with the carrying out by Lessee of its obligations hereunder
and thereunder have been obtained, except with respect to annual budgeting and
appropriation procedures as required by State law relating to each Lease.
(f) The payment of the Rental Payments or any portion thereof under each
Lease is not (under the terms of such Lease or any underlying arrangement) directly or
indirectly (i) secured by any interest in property used or to be used in any activity carried
on by any person other than a state or local governmental unit or payments in respect of
such property or (ii) on a present value basis, derived from payments (whether or not to
Lessee) in respect of property, or borrowed money, used or to be used in any activity
carried on by any person other than a state or local governmental unit. No Equipment
under any Lease will be used, directly or indirectly, in any activity carried on by any person
other than a state or local governmental unit. No portion of the Purchase Price for the
Equipment under any Lease will be used, directly or indirectly, to make or finance loans
to any person other than Lessee. Lessee has not entered into a contract with a private
third party for the use or operation of the Equipment that would result in the related Lease
being treated as a “private activity bond” within the meaning of Section 141(b) of the Code,
or would violate Lessee’s tax covenants set forth in Section 12 hereof.
(g) The entering into and performance of this Agreement and each Lease will
not violate any judgment, order, law or regulation applicable to Lessee or result in any
breach of, or constitute a default under, or result in the creation of any lien, charge,
security interest or other encumbrance upon any assets of Lessee or on the Equipment
under any Lease pursuant to any indenture, mortgage, deed of trust, bank loan or credit
agreement or other instrument to which Lessee is a party or by which it or its assets may
be bound, except as provided in each Lease with respect to the granting of security
interests in and to the Equipment therein described.
(h) Reserved.
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(i) The useful life of the Equipment identified in each Lease will not be less
than the stated full term of the applicable Lease, including all contemplated Renewal
Terms.
(j) Lessee has entered into, or will enter into, each Lease for the purpose of
purchasing, acquiring and leasing the Equipment identified therein and not for the
purpose of refinancing any outstanding obligation of Lessee more than ninety days in
advance of its payment or prepayment date. The Purchase Price for the Equipment will
be paid directly by Lessor, at the direction of Lessee and upon presentation of proper
documentation, to the manufacturer, seller or supplier thereof, and no portion of the
Purchase Price for the Equipment under any Lease will be paid to Lessee as
reimbursement for any expenditure paid by Lessee more than sixty days prior to the
execution and delivery of the applicable Lease.
(k) Lessee has made sufficient appropriations to pay all Rental Payments due
during the Initial Term under each Lease.
(l) Lessee has not previously failed (for whatever reason) to appropriate
amounts sufficient to pay its obligations that are subject to annual appropriation.
24. Events of Default. Each of the following events constitutes an “Event of
Default” with respect to a Lease:
(a) Lessee fails to pay in full the Rental Payment due under such Lease within
ten (10) days on any date upon which such Rental Payment is due;
(b) Lessee fails to comply with any other agreement or covenant of Lessee
under such Lease for a period of thirty days following receipt of written notice of violation
of such agreement or covenant and demand that such violation be remedied;
(c) Lessee institutes any proceedings under any bankruptcy, insolvency,
reorganization or similar law or a receiver or similar officer is appointed for Lessee or any
of its property.
(d) any warranty, representation or statement made in writing by or on behalf
of Lessee in connection with such Lease is found to be incorrect or misleading in any
material respect on the date made; or
(e) Any default occurs under any other agreement for borrowing money, lease
financing of property or otherwise receiving credit under which Lessee is an obligor, if
such default (i) arises under any other agreement for borrowing money, lease financing
of property or provision of credit provided by Lessor or any affiliate of Lessor (including,
without limitation, the occurrence of any event of default under any other Lease), or (ii)
arises under any obligation under which there is outstanding, owing or committed an
aggregate amount in excess of $100,000.00;
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(f) Lessee’s actual or attempted sale, lease or encumbrance of any of the
Equipment under such Lease or the making of any levy, seizure or attachment thereof or
thereon.
25. Repossession and Lessor’s Other Rights Upon Event of Default or Event of
Nonappropriation. Immediately upon the occurrence of an Event of Default under a Lease or
immediately after the expiration of the Initial Term or any Renewal Term during which an Event
of Nonappropriation occurs, Lessor may terminate the affected Lease or Lessee’s rights
thereunder and in any such event repossess the Equipment thereunder, which Lessee hereby
agrees, at its expense, to surrender promptly to Lessor at such location in the continental United
States as Lessor shall direct. Such right of repossession and other rights as specifically provided
in this Paragraph 25 shall constitute the sole remedies for Lessee’s failure to make payments or
otherwise perform its obligations when required under a Lease. If Lessor is entitled to repossess
the Equipment under a Lease, Lessee shall permit Lessor or its agents to enter the premises
where the affected Equipment is then located. In the event of any such repossession, Lessee
shall execute and deliver such documents as may reasonably be required to transfer title to and
possession of the Equipment under the affected Lease to Lessor, free and clear of all liens and
security interests to which such Equipment may have become subject.
Any termination of a Lease at Lessor’s option as described in this Paragraph 25 and as
provided in the applicable Lease shall take effect at the end of the Initial Term or the Renewal
Term then in effect under such Lease, unless Lessor at its option elects to terminate such Lease
on an earlier date.
Upon repossession, if the Equipment under the affected Lease is damaged or otherwise
made less suitable for the purposes for which it was manufactured than when delivered to
Lessee (reasonable wear and tear excepted), Lessee agrees, at its option, to: (a) repair and
restore such Equipment to the same condition in which it was received by Lessee (reasonable
wear and tear excepted) and, at its expense, promptly return such Equipment to Lessor (or to a
location identified in a written notice to Lessee) or (b) pay to Lessor the actual costs of such
repair, restoration and return.
If Lessor terminates a Lease as described in this Paragraph 25 and as provided in the
applicable Lease, or if an Event of Nonappropriation occurs under a Lease and Lessee continues
to use the Equipment after the Initial Term or any Renewal Term under such Lease during which
the Event of Default or the Event of Nonappropriation occurs, or if Lessee otherwise refuses to
pay Rental Payments due during a Renewal Term under a Lease for which Lessee’s governing
body has appropriated sufficient Legally Available Funds to pay such Rental Payments, Lessor
shall be entitled to bring such action at law or in equity to recover damages attributable to such
holdover period for the Equipment subject to such Lease that Lessee continues to use or to the
remainder of such Renewal Term under such Lease for which such appropriations have been
made.
Lessor shall also be entitled to exercise any or all remedies available to a secured party
under the applicable Uniform Commercial Code and all other rights and remedies that Lessor
may have at law or in equity.
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No right or remedy conferred upon or reserved to Lessor as described herein and as
provided in each Lease is exclusive of any other right or remedy herein or in any Lease or at law
or in equity or otherwise provided or permitted, but each shall be cumulative of every other right
or remedy given as described herein and as provided in each Lease or now or hereafter existing
at law or in equity or by statute or otherwise, and may be enforced concurrently therewith or from
time to time.
No waiver of or delay or omission in the exercise of any right or remedy as described
herein and as provided in each Lease or otherwise available to Lessor shall impair, affect or be
construed as a waiver of its rights thereafter to exercise the same. Any single or partial exercise
by Lessor of any right hereunder or with respect to any Lease shall not preclude any other or
further exercise of any right as described herein and as provided in each Lease. The exercise
of any right or remedy herein provided with respect to a Lease shall not relieve Lessee of any
other obligations under any other Lease or the Equipment identified therein.
26. No Sale, Assignment or Other Disposition by Lessee. Lessee agrees not to (a) sell,
assign, transfer, lease, sublease, pledge or otherwise encumber or suffer a lien or encumbrance
upon or against any interest in this Agreement, any Lease or the Equipment under any Lease,
without the Lessor’s prior written consent (b) remove the Equipment from its Equipment Location
identified in the applicable Lease, with the understanding that the “Equipment Location” is a base
location for rolling stock, shall remain at a Lessee location within the City of Fresno, or (c) enter
into any contract or agreement, with respect to the use and operation of any of the Equipment,
under any Lease that would result in the related Lease being treated as a “private activity bond”
within the meaning of Section 141(b) of the Code. Lessee shall at all times remain liable for the
performance of the covenants and conditions on its part to be performed, notwithstanding any
assigning, transferring or other conveyance that may be made with such consent. Lessee shall
at all times comply with Section 12 of this Agreement regarding tax covenants.
27. Assignment by Lessor.
(a) Lessor may, at any time and from time to time without Lessee’s consent, assign,
transfer or otherwise convey all or any part of its interest in the Equipment under any Lease or
in any Lease, including Lessor’s rights to receive the Rental Payments or any part thereof under
any Lease (in which event Lessee agrees to make all Rental Payments under the affected Lease
thereafter to the assignee designated by Lessor), to terminate any Lease or Lessee’s rights
under any Lease, to receive tax indemnity payments as provided in each Lease and to repossess
the Equipment and exercise Lessor’s other rights and remedies under each Lease; provided,
however, that any such assignment, transfer or conveyance to a trustee for the benefit of owners
of certificates of participation shall be made in a manner that conforms to any applicable State
law. Nothing in this Paragraph 27 shall be construed, however, to prevent Lessor from executing
any such assignment, transfer or conveyance with respect to a Lease that does not involve
funding through the use of certificates of participation within the meaning of applicable State law,
including any such assignment, transfer or conveyance as part of a multiple asset pool to a
partnership or trust, interests in which are offered and sold in a private placement or limited
offering only to investors whom Lessor reasonably believes are qualified institutional buyers or
accredited investors within the meaning of the applicable federal securities law; provided,
however, that in any event, Lessee shall not be required to make Rental Payments under any
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Lease, to send notices or to otherwise deal with respect to matters arising under any Lease with
or to more than one individual or entity with respect to each Lease. No assignment, transfer or
conveyance permitted by this Paragraph 27 with respect to a Lease shall be effective until
Lessee’s registration agent (Lessor, as provided below) shall have received a written notice of
assignment (in substantially the form attached as Exhibit A-6 to each Lease) that discloses the
name and address of each such assignee; provided, however, that if such assignment is made
to a bank or trust company as trustee or paying agent for owners of certificates of participation,
trust certificates or partnership interests with respect to the Rental Payments payable under any
Lease, it shall thereafter be sufficient that a copy of the agency or trust agreement shall have
been deposited with Lessee’s registration agent until Lessee’s registration agent shall have been
advised that such agency or trust agreement is no longer in effect. During the term of this
Agreement, Lessee shall keep, or cause to be kept, a complete and accurate record of all such
assignments with respect to each Lease in form necessary to comply with Section 149 of the
Code. For this purpose, Lessee appoints Lessor to act as its registration agent, which
appointment Lessor hereby accepts. Lessor agrees on Lessee’s behalf to maintain such record
of all assignments. Lessee agrees, if so requested, to acknowledge each such assignment in
writing within fifteen days after request therefor, but such acknowledgment shall in no way be
deemed necessary to make any assignment effective. Lessee further agrees that any moneys
or other property received by Lessor as a result of any such assignment, transfer or conveyance
shall not inure to Lessee’s benefit.
(b) In addition to the notice required to be made to the registration agent in Section
27(a), if Lessor assigns the right to collect Rental Payments to anyone other than the Lessor,
then Lessee shall not be obligated to make any Rental Payments to any Lease assignee until
Lessor notifies City Controller in writing of Lessor’s assignment of any Lease, and the name and
address of assignee for purposes of notice and payments.
(c) Notwithstanding anything to the contrary with this Paragraph 27 or this Agreement,
Lessor hereby acknowledges that Lessee, its counsel and its advisors bear no responsibility for
the accuracy or completeness of information (if any) with respect to the Agreement and any
Lease or the Lessee, including, without limiting the generality of the foregoing, any information
contained in any disclosure document related to the purchase by the purchasers of all or any
part of Lessor’s interests in the Equipment under any Lease or all or any part of Lessor’s interest
in any Lease.
(d) Lessor covenants and agrees to undertake all responsibility for compliance with
State and Federal securities laws. The Lessor acknowledges and agrees that the Lessee has
made no undertaking to provide nor has it approved any disclosure or other information for use
in connection with the sale of Lease Interests. The Lessor represents and warrants that the sale
of Lease Interests is exempt from Rule 15c2-12, and acknowledges and agrees that the Lessee
has made no undertaking to provide any continuing or other disclosure following the execution
and delivery of a Lease.
(e) Lessor acknowledges and agrees that the sale or assignment of Lease Interests is
subject to the restrictions contained in California Government Code Sections 5950-5955.
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28. Costs. Lessee shall pay to Lessor all costs and expenses incurred by Lessor in
enforcing any of the terms, conditions or provisions of each Lease, including reasonable
attorneys’ fees and costs related to repossession of the Equipment under any Lease (including,
without limitation, the costs and expenses to deliver possession of the Equipment under such
Lease to such location as Lessor directs pursuant to Paragraph 25 hereof) and the exercise of
remedies with respect to each Lease.
29. Severability. If any provision of this Agreement or any Lease is or becomes invalid,
illegal or unenforceable, such invalidity, illegality or unenforceability will not affect the other
provisions of this Agreement or any such Lease, which shall be valid and enforceable to the
fullest extent permitted by law.
30. Notices. All notices, reports and other documents provided for in this Agreement or
under any Lease shall be deemed to have been given or made when delivered (including by
facsimile transmission) or three days after being mailed by certified mail, postage prepaid,
addressed to Lessor or Lessee at their respective mailing addresses set forth above or at such
other addresses as either of the parties hereto may designate in writing to the other from time to
time for such purpose.
31. Amendments. This Agreement and each Lease (including the exhibits attached
thereto) constitute the entire agreement between Lessor and Lessee with respect to the
Equipment therein described and the subject matter hereof and thereof. No term or provision of
this Agreement or any Lease may be changed, waived, amended or terminated except by a
written agreement signed by both Lessor and Lessee, except that Lessor may insert in any
Schedule the serial number and additional description details of any item of Equipment after
delivery thereof.
32. Construction. This Agreement and each Lease shall in all respects be governed by
and construed in accordance with the laws of the State. The titles of the Paragraphs of this
Agreement are for convenience only and shall not define or limit any of the terms or provisions
hereof. Time is of the essence of this Agreement and each Lease in each of their respective
provisions.
33. Parties; Survival of Certain Obligations and Indemnities.
(a) The provisions of this Agreement and each Lease shall be binding upon, and
(subject to the limitations of Paragraph 26 hereof) shall inure to the benefit of, the respective
assignees and successors of Lessor and Lessee.
(b) The indemnities, assumptions of liabilities and obligations of Lessee provided for
in Paragraphs 12 of this Agreement and incorporated into each Lease shall continue in full force
and effect notwithstanding the expiration or termination of the term of this Agreement or any
applicable Lease, until the later of four years after the expiration or termination of the term of this
Agreement or any applicable Lease.
34. Counterparts. This Agreement and each Lease may be executed in several
counterparts, each of which when executed shall be deemed to be an original, but all together
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shall constitute but one and the same instrument; provided, however, that only one counterpart
shall constitute the original for each Lease for purposes of the sale or transfer of a Lease as
chattel paper as provided in such Lease.
35. Interest. If under applicable law any part of the Rental Payments under any Lease
is deemed or determined to be imputed interest, finance charges or time-price differential
(“Interest”), Lessor and Lessee agree that the Rental Payments under such Lease shall be
deemed to be level payments of principal and Interest, with such Interest accruing on principal
amounts outstanding from time to time. The rate of such Interest is not intended to exceed the
maximum rate or amount of interest permitted by applicable law. If the Interest exceeds such
maximum, then at Lessor’s option, if permitted by law, the Interest payable under such Lease
will be reduced to the legally permitted maximum amount of interest, and any excessive Interest
under such Lease will be used to reduce the principal amount of Lessee’s obligation under such
Lease or be refunded to Lessee.
36. Recycling Program. In the event Lessor maintains an office or operates a
facility(ies), or is required herein to maintain or operate same, within the incorporated limits of
the City of Fresno, Lessor at its sole cost and expense shall:
(a) After award, immediately establish and maintain a viable and ongoing recycling
program, approved by Lessee’s Solid Waste Management Division for each office and
facility. Literature describing Lessee recycling programs is available from Lessee’s Solid Waste
Management Division and by calling City of Fresno Recycling Hotline at (559) 621-1111.
(b) Immediately contact Lessee’s Solid Waste Management Division at (559) 621-
1452 and schedule a free waste audit, and cooperate with such Division in their conduct of the
audit for each office and facility.
(c) Cooperate with and demonstrate to the satisfaction of Lessee’s Solid Waste
Management Division the establishment of the recycling program in paragraph (i) above and the
ongoing maintenance thereof.
37. Conflict of Interest and Non-Solicitation.
(a) Prior to Lessee’s execution of this Agreement, Lessor shall complete a City of
Fresno conflict of interest disclosure statement in the form as set forth in Exhibit C. During the
term of this Agreement, Lessor shall have the obligation and duty to immediately notify Lessee
in writing of any change to the information provided by Lessor in such statement.
(b) Lessor shall comply, and require its subcontractors to comply, with all applicable
(i) professional canons and requirements governing avoidance of impermissible client conflicts;
and (ii) federal, state and local conflict of interest laws and regulations including, without
limitation, California Government Code Section 1090 et. seq., the California Political Reform Act
(California Government Code Section 87100 et. seq.) and the regulations of the Fair Political
Practices Commission concerning disclosure and disqualification (2 California Code of
Regulations Section 18700 et. seq.). Lessor shall take, and require its subcontractors to take,
reasonable steps to avoid any appearance of a conflict of interest. Upon discovery of any facts
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giving rise to the appearance of a conflict of interest, Lessor shall immediately notify Lessee of
these facts in writing.
(c) In performing the work or services to be provided hereunder, Lessor shall not
employ or retain the services of any person while such person either is employed by Lessee or
is a member of any Lessee council, commission, board, committee, or similar Lessee body.
This requirement may be waived in writing by the City Manager, if no actual or potential conflict
is involved.
(d) Lessor shall not employ an individual who, within twelve months immediately
preceding such employment did, in the individual's capacity as a Lessee official, officer or
employee, participate in, negotiate with or otherwise have an influence on the recommendation
made to the Administrator or City Council in connection with the selection of, or award of this
Agreement to, Lessor.
(e) Lessor represents and warrants that it has not paid or agreed to pay any
compensation, contingent or otherwise, direct or indirect, to solicit or procure this Agreement or
any rights/benefits hereunder.
(f) Neither Lessor, nor any of Lessor’s subcontractors performing any services on this
Project, shall bid for, assist anyone in the preparation of a bid for, or perform any services
pursuant to, any other contract in connection with this Project unless fully disclosed to and
approved by the City Manager, in advance and in writing. Lessor and any of its subcontractors
shall have no interest, direct or indirect, in any other contract with a third party in connection with
this Project unless such interest is in accordance with all applicable law and fully disclosed to
and approved by the City Manager, in advance and in writing. Notwithstanding any approval
given by the City Manager under this provision, Lessor shall remain responsible for complying
with Section 12(b), above.
(g) If Lessor should subcontract all or any portion of the work to be performed or
services to be provided under this Agreement, Lessor shall include the provisions of this Section
9 in each subcontract and require its subcontractors to comply therewith.
(h) This section shall survive termination or expiration of this Agreement.
38. Nondiscrimination. Lessor shall not employ discriminatory practices in the
provision of services, employment of personnel, or in any other respect on the basis of race,
religious creed, color, national origin, ancestry, physical disability, mental disability, medical
condition, marital status, sex, age, sexual orientation, ethnicity, status as a disabled veteran or
veteran of the Vietnam era. During the performance of this Agreement, Lessor agrees as follows:
(a) Lessor will comply with all laws and regulations, as applicable. No person in the
United States shall, on the grounds of race, religious creed, color, national origin, ancestry,
physical disability, mental disability, medical condition, marital status, sex, age, sexual
orientation, ethnicity, status as a disabled veteran or veteran of the Vietnam era be excluded
from participation in, be denied the benefits of, or be subject to discrimination under any program
or activity made possible by or resulting from this Agreement.
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(b) Lessor will not discriminate against any employee or applicant for employment
because of race, religious creed, color, national origin, ancestry, physical disability, mental
disability, medical condition, marital status, sex, age, sexual orientation, ethnicity, status as a
disabled veteran or veteran of the Vietnam era. Lessor shall take affirmative action to ensure
that applicants are employed, and the employees are treated during employment, without regard
to their race, religious creed, color, national origin, ancestry, physical disability, mental disability,
medical condition, marital status, sex, age, sexual orientation, ethnicity, status as a disabled
veteran or veteran of the Vietnam era. 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. Lessor agrees to post in conspicuous places, available to employees
and applicants for employment, notices setting forth the provision of this nondiscrimination
clause.
(c) Lessor will, in all solicitations or advertisements for employees placed by or on
behalf of Lessor, state that all qualified applicants will receive consideration for employment
without regard to race, religious creed, color, national origin, ancestry, physical disability, mental
disability, medical condition, marital status, sex, age, sexual orientation, ethnicity, status as a
disabled veteran or veteran of the Vietnam era.
(d) Lessor will send to each labor union or representative of workers with which it has
a collective bargaining agreement or other contract or understanding, a notice advising such
labor union or workers' representatives of Lessor’s commitment under this section and shall post
copies of the notice in conspicuous places available to employees and applicants for
employment.
39. Federal Immigration Reform and Control Act of 1986: As a material part of any
contract for a City of Fresno project, every Contractor who has employees who will work on a
City of Fresno project, is required to comply with all of the provisions of the Federal Immigration
Reform and Control Act of 1986 (P.L. 99-603, 100 Stat. 3359). This requirement includes
compliance with all of the employee documentation provisions.
40. Alteration of Terms: No alterations or variations of the terms of this Agreement shall
be valid unless made in writing and signed by both parties.
41. Agreement Changes: No changes or modifications to the Agreement shall be made
unless agreed to and signed by both parties. No prior, current or post award verbal agreement
or agreements with any officer, agent or employee of the Lessee shall affect or modify any terms
or obligations of these Specifications or any Agreement resulting from this procurement.
42. Independent Contractor: In the furnishing of the services provided for herein, the
Lessor is acting as an independent contractor. Neither the Lessor, nor any of its officers,
associates, agents or employees shall be deemed an employee, joint venturer, partner or agent
of the Lessee for any purpose. However, the Lessee shall retain the right to verify that the
Lessor is performing its respective obligations in accordance with the terms of the Agreement.
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Because of its status as an independent contractor, Lessor and its officers, agents and
employees shall have absolutely no right to employment rights and benefits available to Lessee
employees. Lessor shall be solely liable and responsible for all payroll and tax withholding and
for providing to, or on behalf of, its employees all employee benefits including, without limitation,
health, welfare and retirement benefits. In addition, together with its other obligations under this
Agreement, Lessor shall be solely responsible, indemnify, defend and save Lessee harmless
from all matters relating to employment and tax withholding for and payment of Lessor’s
employees, including, without limitation, (i) compliance with Social Security and unemployment
insurance withholding, payment of workers compensation benefits, and all other laws and
regulations governing matters of employee withholding, taxes and payment; and (ii) any claim
of right or interest in Lessee’s employment benefits, entitlements, programs and/or funds offered
employees of Lessee whether arising by reason of any common law, de facto, leased, or co-
employee rights or other theory. It is acknowledged that during the term of this Agreement,
Lessor may be providing services to others unrelated to Lessee or to this Agreement.
43. Governing Law and Venue: The Agreement shall be governed by, and construed
and enforced in accordance with, the laws of the State of California, excluding, however, any
conflict of laws rule which would apply the law of another jurisdiction. Venue for purposes of the
filing of any action regarding the enforcement or interpretation of the Agreement and any rights
and duties thereunder shall be Fresno County, California.
44. Compliance with Law: In providing the services required under the Agreement,
Lessor shall at all times comply with all applicable laws of the United States, the State of
California and the City of Fresno, and with all applicable regulations promulgated by Federal,
State, regional, or local administrative and regulatory agencies, now in force and as they may
be enacted, issued, or amended during the term of the Agreement.
45. Interpretation: The Lessor acknowledges that the Agreement in its final form is the
result of the combined efforts of the parties and that, should any provision of the Agreement be
found to be ambiguous in any way, such ambiguity shall not be resolved by construing the
Agreement in favor or against any party, but rather by construing the terms in accordance with
their generally accepted meaning.
46. Maintenance of Records: Records of Lessor pertaining to the services hereunder
shall be kept on a generally recognized accounting basis and shall be provided to City or its
authorized representatives upon request during regular business hours throughout the life of the
Agreement and for a period of three years after final payment and for the period of time required
by law. In addition, all Records pertaining to the Agreement shall be available for the purpose
of making audits, examinations, excerpts, and transcriptions for the same period of time. For
the purposes of this Section, “Records” means all documents related to the Agreement and
delivered to Lessor in connection therewith, and any future modifications or amendments
thereof. This Section shall survive expiration or termination of the Agreement.
47. Notices: Any notice required or intended to be given to either party under the terms
of this Contract shall be in writing and shall be deemed to be duly given when delivered or mailed
by registered or certified mail, postage prepaid, or delivered by overnight courier, addressed to
the party to which notice is to be given at the party's address set forth on the signature page of
the Proposal in the case of the Contractor and at the address in the Special Conditions for
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mailing of invoices in the case of City, or at such other address as the parties may from time to
time designate by written notice.
48. Waiver: The waiver by either party of a breach by the other of any provision of this
Contract shall not constitute a continuing waiver or a waiver of any subsequent breach of either
the same or a different provision of this Contract. No provisions of this Contract may be waived
unless in writing and signed by all parties to this Contract. Waiver of any one provision herein
shall not be deemed to be a waiver of any other provision herein.
49. Cumulative Remedies: No remedy or election hereunder shall be deemed exclusive
but shall, wherever possible, be cumulative with all other remedies at law or in equity.
50. No Third-Party Beneficiaries: The rights, interests, duties and obligations defined
within this Agreement are intended for the specific parties hereto as identified in the preamble
of this Agreement. Notwithstanding anything stated to the contrary in this Agreement, it is not
intended that any rights or interests in this Agreement benefit or flow to the interest of any third
parties.
51. Extent of Agreement: Each party acknowledges that they have read and fully
understand the contents of this Agreement. This Agreement represents the entire and integrated
agreement between the parties with respect to the subject matter hereof and supersedes all
prior negotiations, representations or agreements, either written or oral. This Agreement may
be modified only by written instrument duly authorized and executed by both Lessee and Lessor.
52. Headings: The section headings in this Agreement are for convenience and
reference only and shall not be construed or held in any way to explain, modify or add to the
interpretation or meaning of the provisions of this Agreement.
Lessor and Lessee each hereby acknowledges that it has read and understands this
agreement.
[Signatures on following page.]
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400872v2
EXHIBIT A
Lease Schedule
MASTER EQUIPMENT LEASE-PURCHASE
AGREEMENT NO.:
DATE OF MASTER EQUIPMENT LEASE-PURCHASE AGREEMENT:
LEASE SCHEDULE NO.:
DATE OF LEASE SCHEDULE:
NOTIFICATION DATE:
LESSEE: CITY OF FRESNO
1. DESCRIPTION OF THE EQUIPMENT:
SUPPLIER QUANTITY DESCRIPTION OF UNITS OF
EQUIPMENT SERIAL NUMBERS1 (IF
AVAILABLE)
together with all accessories, attachments, substitutions and accessions.
2. EQUIPMENT LOCATION:
3. The Rental Payments shall be made for the Equipment as follows:
PRINCIPAL INTEREST TOTAL RENTAL PREPAYMENT
1 As provided in Paragraph 31 of the Master Equipment Lease-Purchase Agreement, Lessee authorizes
Lessor to insert serial numbers and additional description details of Equipment when determined by Lessor.
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DATE DUE COMPONENT COMPONENT PAYMENT DUE OPTION AMOUNT2
4. For purposes of this Lease, “State” means the State of California.
5. Lessee’s current Fiscal Period extends from July 1, 20__ to June 30, 20__.
6. The terms and provisions of the Master Equipment Lease-Purchase Agreement
described above (other than to the extent that they relate solely to other Schedules or to
Equipment listed on other Schedules) are hereby incorporated into this Schedule by reference
and made a part hereof.
7. Lessee hereby represents, warrants and covenants that its representations,
warranties and covenants set forth in such Master Equipment Lease-Purchase Agreement
(particularly Paragraph 23 thereof) are true and correct as though made on the date of execution
of this Lease Schedule
Lessee: Lessor:
City of Fresno
By: By:
Printed Name: Printed Name:
Title: Title:
This is Counterpart No. of manually executed and serially numbered
counterparts. To the extent that this Lease constitutes chattel paper (as defined in the Uniform
Commercial Code), no security interest herein may be created through the transfer or
possession of any Counterpart other than Counterpart No. 1.
2 Assumes all Rental Payments and Additional Payments due on and prior to that date have been paid.
Docusign Envelope ID: 4E328970-FDA0-442B-B4C2-9A69BDBFE4FE
EXHIBIT A PAGE 3
400872v2
EXHIBIT A-1
Acceptance Certificate
LESSEE: CITY OF FRESNO
MASTER EQUIPMENT LEASE-PURCHASE AGREEMENT NO. ........................ _______________
LEASE SCHEDULE NO. ............................................................................ _______________
THE UNDERSIGNED ACKNOWLEDGES AND REPRESENTS THAT:
1. The Equipment identified in the above-referenced Lease Schedule is delivered, installed,
available for use and is placed in service as of the Acceptance Date indicated below.
2. Such Equipment is in good operating condition and repair and is accepted as satisfactory
in all respects for the purpose of the applicable Lease.
ACCEPTANCE DATE: X ........................................................
AUTHORIZED SIGNATURE: X ........................................................
PRINTED NAME: X ........................................................
TITLE: X ........................................................
Docusign Envelope ID: 4E328970-FDA0-442B-B4C2-9A69BDBFE4FE
EXHIBIT A PAGE 4
400872v2
EXHIBIT A-2
(To Lease Schedule No. __)
[Attach I.R.S. Form 8038-G or 8038-GC, as Appropriate]
Docusign Envelope ID: 4E328970-FDA0-442B-B4C2-9A69BDBFE4FE
EXHIBIT A PAGE 5
400872v2
EXHIBIT A-3
(TO LEASE SCHEDULE NO. __)
[ATTACH FORM OF AUTHORIZING RESOLUTION]
Docusign Envelope ID: 4E328970-FDA0-442B-B4C2-9A69BDBFE4FE
EXHIBIT PAGE 6
400872v2
EXHIBIT A-4
(TO LEASE SCHEDULE NO. )
INCUMBENCY CERTIFICATE OF LESSEE
The undersigned, the duly authorized representative of the named Lessee under that
certain Master Equipment Lease-Purchase Agreement dated __________ (the “Agreement”),
with , as Lessor, hereby certifies as follows in accordance with the
requirements of the Agreement, which is incorporated by reference into the above-referenced
Lease Schedule. Capitalized terms used herein have the same meaning as in the Agreement.
I hold the position noted under my signature, and I have all authority necessary to execute
and deliver this Certificate. The following officers of the Lessee are duly elected or appointed,
and the signatures above the respective name and title are true and correct and, where required,
have been filed with the appropriate officials of the State.
Signature: Signature: _______________
Printed Name: Printed Name: _________________
Title: Title: _________________
IN WITNESS WHEREOF, I have executed and delivered this certificate as of this _____
day of _____________, 20____ .
Lessee: CITY OF FRESNO
By:
Printed Name:
Title:
Docusign Envelope ID: 4E328970-FDA0-442B-B4C2-9A69BDBFE4FE
EXHIBIT B PAGE 7
400872v2
EXHIBIT A-5
[Attach Opinion of Lessee’s Counsel]
Docusign Envelope ID: 4E328970-FDA0-442B-B4C2-9A69BDBFE4FE
EXHIBIT B PAGE 8
400872v2
EXHIBIT A-6
(To Lease Schedule No. ___)
NOTICE AND ACKNOWLEDGMENT OF SALE OF
RENTAL PAYMENTS AND ASSIGNMENT OF LEASE
(“Lessor”) and CITY OF FRESNO (“Lessee”) have entered into
a Master Equipment Lease-Purchase Agreement No. _______________ dated _______, and
Lease Schedule No. ___ dated ____________ (collectively the “Lease”), under which Lessee
has, or will have prior to its execution hereof, leased equipment (the “Equipment”) described in
such Lease Schedule.
Lessee is hereby notified that Lessor has assigned to the assignee named below
(“Assignee”) all of Lessor’s right, title and interest in and to the Lease, the leased Equipment and
the Rental Payments, all as permitted by the Lease.
Lessee is hereby directed to pay any and all Rental Payments and other amounts due
with respect to which Lessor’s Assignee renders an invoice, at the address set out immediately
below or as otherwise directed in said invoice:
“Assignee” ______________________________
______________________________
By signing this Notice and Acknowledgment, Lessee agrees that it will pay all amounts
due under the Lease as directed in the invoice without any set-off or deduction whatsoever
notwithstanding any defect in, damage to or requisition of any of the Equipment leased under
the Lease, any other similar or dissimilar event, or any defense, set-off, counterclaim or
recoupment arising out of any claim of Lessee against Lessor or Assignee.
Lessee further acknowledges and agrees that Assignee has not assumed any of Lessor’s
obligations or duties under the Lease or made any warranties whatsoever as to the Lease or the
Equipment. Lessee agrees that no change may be made to the Lease without the prior written
consent of Assignee.
By signing this Notice and Acknowledgment, Lessee warrants that its representations and
warranties under the Lease are true and correct on the date hereof.
Date:___________________________ Lessee: CITY OF FRESNO
By: _______________________________
Printed Name: ______________________
Title: ______________________________
Docusign Envelope ID: 4E328970-FDA0-442B-B4C2-9A69BDBFE4FE
EXHIBIT B PAGE 1
400872v2
EXHIBIT B – RESERVED
TO BE REVIEWED IN A SEPARATE FILE AND INSERTED INTO FINAL AGREEMENT
Docusign Envelope ID: 4E328970-FDA0-442B-B4C2-9A69BDBFE4FE
Docusign Envelope ID: 4E328970-FDA0-442B-B4C2-9A69BDBFE4FE
1 of 4 Date Adopted: Date Approved: Effective Date: City Attorney Approval: SS Resolution No.
RESOLUTION NO. ____________
A RESOLUTION OF THE CITY OF FRESNO, CALIFORNIA,
AUTHORIZING THE EXECUTION AND DELIVERY OF A
MASTER LEASE PURCHASE AGREEMENT AND CERTAIN
SEPARATE LEASE SCHEDULES, FACILITATING FUTURE
CITYWIDE LEASE-PURCHASE EQUIPMENT
ACQUISITIONS; AND AUTHORIZING THE EXECUTION
AND DELIVERY OF DOCUMENTS REQUIRED IN
CONNECTION THEREWITH
WHEREAS, City of Fresno, a Charter City and California municipal corporation
(City), is authorized by its Charter and the laws of the State of California to purchase,
acquire, and lease personal property for the benefit of the City and its inhabitants and to
enter into contracts with respect thereto; and
WHEREAS, the City desires to purchase, acquire, and lease certain equipment
constituting personal property necessary for City operations; and
WHEREAS, to acquire such equipment, the City as Lessee proposes to enter that
certain Master Lease Purchase Agreement (Agreement) with Banc of America Public
Capital Corp (Lessor), and from time to time, to enter separate Lease Schedules, as
provided in the Agreement; and
WHEREAS, the City entering the Agreement, and the separate Lease Schedules,
as provided in the Agreement, will benefit the City and the efficient and effective
administration of City operations.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Fresno as
follows:
2 of 4
1. Approval of Documents. Council approves the Agreement, and the separate
Lease Schedules, as provided in the Agreement, substantially in the forms presented at
this meeting, with such insertions, omissions and changes as shall be approved by either
the City Manager, City Controller, or Assistant City Controller, and approved to form by
the City Attorney's Office.
2. Authority to Execute Documents. Council authorizes and directs either the
City Manager, City Controller, or Assistant City Controller to execute the Agreement, each
Lease Schedule (subject to meeting any competitive procurement, budgeting, and
appropriation requirements), and any related Exhibits attached thereto and to deliver the
Agreement, and each Lease Schedule (including such Exhibits) to the respective parties
thereto.
3. Other Actions Authorized. Council authorizes the above named City officers
and employees to take all action reasonably required to effectively carry out the
transactions contemplated in the Agreement and the separate Lease Schedules. Actions
may include, without limitation, executing and delivering Acceptance Certificates, any tax
certificates and agreements, closing and other documents all as required under and
consistent with the Agreement and separate Lease Schedules.
4. Authorizing City Representatives. Council designates and authorizes the
City Manager, City Controller, or Assistant City Controller, each acting alone, to represent
the City in carrying out the Agreement and each Lease Schedule until such time as the
Council shall designate any other or different authorized representatives for such
purpose.
3 of 4
5. Severability. If any section, paragraph, clause or provision of this resolution
shall for any reason be held invalid or unenforceable, the invalidity or unenforceability
shall not affect any other section, paragraph, clause, or provision of this resolution.
6. This resolution shall be effective upon final approval.
4 of 4
* * * * * * * * * * * * * *
STATE OF CALIFORNIA )
COUNTY OF FRESNO ) ss.
CITY OF FRESNO )
I, TODD STERMER, City Clerk of the City of Fresno, certify that the foregoing
resolution was adopted by the Council of the City of Fresno, at a regular meeting held on
the day of 2025.
AYES :
NOES :
ABSENT :
ABSTAIN :
TODD STERMER, CMC
City Clerk
By:
Date
Deputy
APPROVED AS TO FORM:
ANDREW JANZ
City Attorney
By:
Sukhman S. Sekhon Date
Deputy City Attorney
Attachments: Exhibit A - Master Equipment Lease Purchase Agreement
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400873v2
ESCROW AGREEMENT
Banc of America Public Capital Corp, a Kansas corporation duly qualified to
transact business in the State of California (the “Lessor”), and City of Fresno, a California
municipal corporation and charter city, duly organized and existing under the laws of the
State of California (the “Lessee”), hereby deliver to BOKF, NA, a national banking
corporation, as escrow agent (the “Escrow Agent”), the sum of
$________________________, receipt of which the Escrow Agent hereby
acknowledges, for deposit into the Escrow Fund (as hereinafter defined), to be held and
disposed of by the Escrow Agent upon the terms and conditions hereinafter set forth to
which the undersigned hereby agrees as follows:
Section 1. The Escrow Agent hereby acknowledges receipt of a true and correct
copy of an executed Lease Schedule No. _________ dated as of
______________________, to Master Equipment Lease- Purchase Agreement dated as
of ___________________________ (as supplemented and amended, the “Lease”),
whereby the Lessor leases to the Lessee, and the Lessee leases from the Lessor, the
equipment and other property described in the Lease (the “Equipment”). From and after
the Escrow Agent’s receipt of a written notice from the Lessor that the Lessor has
assigned its right, title and interest in the Lease to an assignee, and of any further
assignments, all references to the “Lessor” herein shall mean and refer to such assignee
or assignees.
Section 2.
(a) There is hereby created and established with the Escrow Agent a special
escrow fund designated the City of Fresno Lease Schedule No. ___________ Escrow
Fund (the “Escrow Fund”) to be held by the Escrow Agent in the name of the Lessee
separate and apart from all other funds of the Lessor, the Lessee or the Escrow Agent.
(b) The moneys and investments held in the Escrow Fund are irrevocably held in
trust for the benefit of the Lessee and the Lessor, and such moneys, together with any
income or interest earned thereon, shall be expended only as provided in this Escrow
Agreement, and shall not be subject to levy or attachment or lien by or for the benefit of
any creditor of either the Lessee or the Lessor. The Lessor, the Lessee, and the Escrow
Agent intend that the Escrow Fund constitute an escrow account in which the Lessee has
no legal or equitable right, title, or interest until satisfaction in full of all conditions
contained herein for the disbursement of funds by the Escrow Agent therefrom. However,
if the parties’ intention that the Lessee shall have no legal or equitable right, title or interest
until all conditions for disbursement are satisfied in full is not respected in any legal
proceeding, the parties hereto intend that the Lessor have a security interest in the
Escrow Fund, and such security interest is hereby granted by the Lessee to secure
payment of all sums due to the Lessor under the Lease. For such purpose, the Escrow
Agent hereby agrees to act as agent for the Lessor in connection with the perfection of
such security interest and agrees to note, or cause to be noted, on all books and records
relating to the Escrow Fund, the Lessor’s interest therein.
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400873v2
Section 3.
(a) The Escrow Agent shall disburse funds from the Escrow Fund to the
manufacturer, seller or supplier of items of Equipment (the “Vendor”) within three
business days after receipt of a completed payment request form from the Lessee,
substantially in the form attached as Exhibit B-1 hereto (the “Payment Request Form”),
executed by an authorized representative of the Lessee or his or her designee, and
approved by the Lessor. Each Payment Request Form shall have attached thereto such
bills, receipts, invoices or other documents acceptable to the Lessee and the Lessor
evidencing the amount and purposes for which the disbursement is requested. The
Lessee agrees to submit to the Lessor each Payment Request Form for approval by the
Lessor and such other documents and certificates as the Lessor may reasonably request
to evidence the proper expenditure of the moneys in the Escrow Fund for the purpose of
paying costs to acquire the Equipment to be leased pursuant to the Lease. The Lessee
is responsible for making any and all payments required that exceed
$_____________________________ due to Equipment modifications and change
orders authorized or ordered by the Lessee. The Escrow Agent assumes no
responsibility for the expenditure of moneys paid out of the Escrow Fund pursuant to a
Payment Request Form properly signed, approved by the Lessor, and delivered to the
Escrow Agent as provided herein.
(b) If an Event of Non-appropriation or an Event of Default occurs prior to
Lessee’s acceptance of all the Equipment, the amount then on deposit in the Escrow
Fund shall be applied to prepay the unpaid principal component of the Rental Payments
in whole on the first business day of the month next succeeding the occurrence of either
such Event plus accrued interest to the prepayment date; provided, however, that the
amount to be prepaid by Lessee pursuant to this Escrow Agreement shall first be paid
from moneys in the Escrow Fund and then from Legally Available Funds and other
moneys available for such purpose as a result of the exercise by Lessor of its rights and
remedies under the Lease. Any funds on deposit in the Escrow Fund on the prepayment
date described in this subparagraph (b) in excess of the unpaid principal component of
the Rental Payments to be prepaid plus accrued interest thereon to the prepayment date
shall be paid promptly to Lessee.
(c) To the extent that Lessee has not accepted all items of Equipment before the
eighteen-month anniversary of the Dated Date or there otherwise remains a balance on
deposit in the Escrow Fund on the eighteen-month anniversary of the Dated Date, the
amount then on deposit in the Escrow Fund shall be applied to prepay the unpaid principal
component of the Rental Payments in part, in inverse order of Rental Payments, on the
first business day of the next month plus accrued interest to the prepayment date;
provided, however, that the amount to be prepaid by Lessee pursuant to this Escrow
Agreement shall first be paid from moneys in the Escrow Fund and then from Legally
Available Funds. Notwithstanding any such partial prepayment, the Lease shall remain
in full force and effect with respect to the portion of the Equipment accepted by Lessee
during such eighteen-month period, and the portion of the principal component of Rental
Payments remaining unpaid after such prepayment plus accrued interest thereon shall
remain payable in accordance with the terms of the Lease. Upon Lessor’s request,
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400873v2
Lessee shall execute an amendment to the Rental Payment Schedule that reflects the
change to the Rental Payments as a result of such partial prepayment. “Dated Date” as
used in this agreement shall mean the date on which Lessor deposits funds into the
Escrow Fund.
Section 4.
(a) This Escrow Agreement expressly and exclusively sets forth the duties of
Escrow Agent with respect to any and all matters pertinent hereto, and no implied duties
or obligations shall be read into this Escrow Agreement against Escrow Agent. This
Escrow Agreement constitutes the entire agreement between the Escrow Agent and the
other parties hereto in connection with the subject matter of this escrow, and no other
agreement entered into between the parties, or any of them, shall be considered as
adopted or binding, in whole or in part, upon the Escrow Agent notwithstanding that any
such other agreement may be referred to herein or deposited with Escrow Agent or the
Escrow Agent may have knowledge thereof, and Escrow Agent’s rights and
responsibilities shall be governed solely by this Escrow Agreement.
(b) Escrow Agent acts hereunder as a depository only, and is not responsible or
liable in any manner whatsoever for the sufficiency, correctness, genuineness or validity
of the subject matter of this Escrow Agreement or any part thereof, or for the form of
execution thereof, or for the identity or authority of any person executing or depositing
such subject matter. Escrow Agent shall be under no duty to investigate or inquire as to
the validity or accuracy of any document, agreement, instruction or request furnished to
it hereunder believed by it to be genuine and Escrow Agent may rely and act upon, and
shall not be liable for acting or not acting upon, any such docum ent, agreement,
instruction or request. Escrow Agent shall in no way be responsible for notifying, nor shall
it be its duty to notify, any party hereto or any other party interested in this Escrow
Agreement of any payment required or maturity occurring under this Escrow Agreement
or under the terms of any instrument deposited herewith.
(c) Indemnification. The parties to this Escrow Agreement (other than Escrow
Agent) hereby jointly and severally agree to indemnify and hold Escrow Agent, its affiliates
and their officers, employees, successors, assigns, attorneys and agents (each an
“Indemnified Party”) harmless from all losses, costs, claims, demands, expenses,
damages, penalties and attorney’s fees suffered or incurred by any Indemnified Party or
Escrow Agent as a result of anything which it may do or refrain from doing in connection
with this Escrow Agreement or any litigation or cause of action arising from or in
conjunction with this Escrow Agreement or involving the subject matter hereof or Escrow
Funds or monies deposited hereunder or for any interest upon any such monies,
including, without limitation, arising out of the negligence of Escrow Agent; provided that
the foregoing indemnification shall not extend to the gross negligence or willful
misconduct of Escrow Agent. This indemnity shall include, but not be limited to, all costs
incurred in conjunction with any interpleader which the Escrow Agent may enter into
regarding this Escrow Agreement.
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400873v2
Section 5.
(a) To the extent permitted by law, and with such collateral or security as required
by law, any moneys held as part of the Escrow Fund shall be promptly invested and
reinvested by the Escrow Agent upon the written direction of the Lessee (so long as an
Event of Default under the Lease has not occurred and is continuing or an Event of Non-
appropriation under the Lease has not occurred) or the written direction of the Lessor (if
an Event of Default under the Lease has occurred and is continuing or an Event of Non-
appropriation under the Lease has occurred) in any of the following investments: (i) direct
obligations of, or obligations the payment of the principal of and interest on which are
unconditionally guaranteed by, the United States of America, the guarantee of which
constitutes the full faith and credit obligation of the United States of America (“United
States Government Obligations”); (ii) bonds, debentures, participation certificates or
notes issued by, or obligations the prompt payment of principal and interest for which is
guaranteed by, any of the following: Bank for Cooperatives, Federal Financing Bank,
Federal Land Banks, Federal Home Loan Banks, Federal Intermediate Credit Banks,
Federal National Mortgage Association, Export-Import Bank of the United States, Student
Loan Marketing Association, Farmers Home Administration, Federal Home Loan
Mortgage Corporation or Government National Mortgage Association, or any other
agency or corporation that has been or may hereafter be created by or pursuant to an Act
of Congress of the United States as an agency or instrumentality thereof; (iii) certificates
of deposit, time deposits, bank repurchase agreements or any other interest-bearing
banking arrangements with any banking institution (including the Escrow Agent or any
bank with which the Escrow Agent is affiliated) that is fully insured by the Federal Deposit
Insurance Corporation, or any successor thereto, provided that such certificates of
deposit or time deposits, bank repurchase agreements or other interest-bearing banking
arrangements, if not fully insured by the Federal Deposit Insurance Corporation, or such
successor, are either (A) issued by national or state banks having capital and surplus of
at least $100,000,000 and a rating of “A” or better by any nationally recognized securities
rating organization or (B) fully secured by United States Government Obligations; or (iv)
money market funds registered under the Investment Company Act of 1940, whose
shares are registered under the Securities Act of 1933, and having a rating by S&P of
AAAm-G; AAA-m; or AA-m and if rated by Moody’s rated Aaa, Aa1 or Aa2. Absent written
direction, the Escrow Agent shall invest funds into the Invesco Treasury Portfolio Fund
CUSIP 825252786 as standing instructions.
(b) No investment shall be made in a security maturing later than the date on
which the Lessee reasonably anticipates needing such funds for the payment of the costs
to acquire the Equipment from the Escrow Fund. The Lessee shall notify the Escrow
Agent from time to time as to the dates on which funds are needed for disbursement from
the Escrow Fund and the estimated amount of each such disbursement and the Escrow
Agent may rely upon such information in connection with the investment or reinvestment
of funds. Until further notice from the Lessee to the Escrow Agent, the schedule of
disbursements attached as Exhibit B-2 hereto (the “Escrow Fund Draw Schedule”) shall
constitute such notice from the Lessee upon which the Escrow Agent may rely for such
purposes.
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400873v2
(c) So long as an Event of Default under the Lease has not occurred and is not
continuing and an Event of Non-appropriation under the Lease has not occurred, earnings
and income realized from the investment and reinvestment of moneys in the Escrow Fund
shall be applied as directed by the Lessee either to (i) payment of costs to acquire
Equipment or (ii) payment of the interest component of Rental Payments. After the
occurrence of an Event of Default under the Lease and so long as it continues or after
the occurrence of an Event of Non-appropriation under the Lease, earnings and income
realized from the investment and reinvestment of moneys in the Escrow Fund shall be
applied as directed by the Lessor to the payment or prepayment of the principal and
interest component of Rental Payments.
(d) All investments shall be held for the benefit of the Lessor and the Lessee as
herein provided, shall be disbursed to pay costs to acquire the Equipment to be leased
pursuant to the Lease (but only upon satisfaction of the conditions contained herein for
disbursement of such funds), shall be registered in the name of the Escrow Agent only,
solely and specifically for purposes of the escrow hereunder, and shall be held by the
Escrow Agent.
Section 6. For purposes of this Escrow Agreement:
(a) The Escrow Agent shall not incur any liability in acting upon any Payment
Request Form delivered hereunder and believed by the Escrow Agent to be genuine and
to be signed and approved by the proper parties.
(b) The Escrow Agent may consult with legal counsel in the event of any dispute
or question as to the construction of the Escrow Agent’s duties hereunder and shall not
be held to any liability for acting in accordance with advice so received.
(c) Subject to the security interest granted to the Lessor pursuant to Section 14
of the Lease and in Section 2 of this Escrow Agreement, the Escrow Agent shall have a
first lien on the moneys held by it hereunder for its compensation and for any costs, liability
or expense or counsel fees it may incur.
Section 7. In the event of any disagreement between the undersigned or any of
them, and/or any other person, resulting in adverse claims and demands being made in
connection with or for any moneys involved herein or affected hereby, the Escrow Agent
shall be entitled at its option to refuse to comply with any such claim or demand, so long
as such disagreement shall continue, and in so refusing the Escrow Agent may refrain
from making any delivery or other disposition of any moneys involved herein or affected
hereby and in so doing the Escrow Agent shall not be or become liable to the undersigned
or any of them or to any person or party for its failure or refusal to comply with such
conflicting or adverse demands, and the Escrow Agent shall be entitled to continue so to
refrain and refuse so to act until:
(a) the rights of the adverse claimants have been finally adjudicated in a court
assuming and having jurisdiction of the parties and the moneys involved herein or
affected hereby; or
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400873v2
(b) all differences shall have been adjusted by agreement and the Escrow Agent
shall have been notified thereof in writing signed by all of the persons interested.
Section 8.
(a) The fees for the usual services of the Escrow Agent under the terms of this
Escrow Agreement are set forth in the schedule attached hereto as Exhibit B-3. In
addition, the Escrow Agent shall be entitled to reimbursement for all out-of-pocket
expenses reasonably incurred hereunder (including, without limitation, fees of counsel).
A statement of the fees and out-of-pocket expenses owed to the Escrow Agent by the
Lessee shall be mailed periodically to the Lessee at the mailing address set forth in the
Lease.
(b) In the event that the fees charged and due the Escrow Agent remain unpaid
for a period of one year, the Escrow Agent shall have the right, and is hereby authorized,
in its sole and absolute discretion, and without liability to any person, to terminate all
duties hereunder upon thirty days written notice to the Lessee and the Lessor at their
respective addresses.
(c) All fees and out-of-pocket expenses charged by the Escrow Agent shall be
paid by the Lessee within thirty days after receipt of the statement therefor as provided in
subparagraph (a) of this Section, but only from Legally Available Funds (as such term is
defined in the Lease).
Section 9. Within fifteen days after the Escrow Agent’s receipt of a written request
from the Lessee or the Lessor for such information, the Escrow Agent shall provide to the
requesting party a written summary of the receipts, disbursements, and status of moneys
and investments in the Escrow Fund.
Section 10. All notices and other communications provided for hereunder shall be
in writing and, if to the Lessee, emailed, mailed or delivered to it, addressed to it at City
of Fresno, 2600 Fresno Street, Fresno, CA 93721, Attention: City Controller, email:
Finance@fresno.gov__________; if to the Lessor, emailed, mailed or delivered to it,
addressed to it at 555 California Street, 6th Floor, San Francisco, California 94104,
Attention: Contract Administration email:___________; and if to the Escrow Agent,
emailed, mailed or delivered to it at 1600 Broadway 26th Floor, Denver Colorado 80202,
Attention: Corporate Trust, email: ctdenver@bokf.com or as to any party at such other
address as shall be designated by such party in a written notice to each other party
complying as to delivery with the terms of this Section. All such notices and other
communications, when mailed shall be effective when within three days after being
deposited in the mails, addressed as aforesaid or upon delivery if delivered by courier,
except that directions to the Escrow Agent shall be effective only upon actual receipt by
the Escrow Agent. Notices and other communications hereunder may be delivered or
furnished by electronic mail provided that any formal notice be attached to an email
message in PDF format and provided further that any notice or other communication sent
to an e-mail address shall be deemed received upon and only upon the sender’s receipt
of affirmative acknowledgement or receipt from the intended recipient. For purposes
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400873v2
hereof no acknowledgement of receipt generated on an automated basis shall be deemed
sufficient for any purpose hereunder or admissible as evidence of receipt. Electronic mail
shall be addressed to each party at its electronic mail address below.
Section 11. This Escrow Agreement may be modified or amended only with the
written consent of all parties hereto.
Section 12. This Escrow Agreement shall terminate on the earlier of
__________________________, or when all transfers required to be made by the
Escrow Agent under the provisions hereof shall have been made.
Section 13. If any one or more of the covenants or agreements provided in this
Escrow Agreement on the part of the Lessor, the Lessee or the Escrow Agent to be
performed should be determined by a court of competent jurisdiction to be contrary to
law, such covenant or agreement shall be deemed and construed to be severable from
the remaining covenants and agreements herein contained and shall in no way affect the
validity of the remaining provisions of this Escrow Agreement.
Section 14. This Escrow Agreement may be executed in several counterparts, all
or any of which shall be regarded for all purposes as one original and shall constitute and
be but one and the same instrument.
Section 15. This Escrow Agreement shall be construed and enforced in
accordance with the laws of the State of California.
Section 16. This Agreement and any other documents or instruments executed by
either party in connection herewith and therewith (collectively the “Related Documents”),
may be executed and delivered by facsimile signature or other electronic or digital means
(including, without limitation, Adobe’s Portable Document Format (“PDF”)). Any such
signature shall be of the same force and effect as an original signature, it being the
express intent of the parties to create a valid and legally enforceable contract between
them. The exchange and delivery of the Related Documents and the related signature
pages via facsimile or as an attachment to electronic mail (including in PDF) shall
constitute effective execution and delivery by the parties and may be used by the parties
for all purposes. Notwithstanding the foregoing, at the request of either party, the parties
hereto agree to exchange inked original replacement signature pages as soon thereafter
as reasonably practicable.
Section 17. For the avoidance of doubt, nothing herein prohibits any individual
from communicating or disclosing information regarding suspected violations of laws,
rules, or regulations to a governmental, regulatory, or self-regulatory authority without any
notification to any person.
[SIGNATURES FOLLOW ON NEXT PAGE]
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400873v2
[Signature Page to Escrow Agreement]
IN WITNESS WHEREOF, the parties hereto have caused this Escrow Agreement
to be duly executed by their duly authorized officers as of this ___ day of __________,
202__.
CITY OF FRESNO, a California municipal
corporation, as Lessee
By:__________________________________
Printed Name: _________________________
Title:_________________________________
BANC OF AMERICA PUBLIC CAPITAL CORP,
as Lessor
By:__________________________________
Printed Name: _________________________
Title:_________________________________
BOKF, NA, as Escrow Agent
By:___________________________________
Printed Name:__________________________
Title: ________________________________
[Signature Page to Escrow Agreement]
400873v2
ACKNOWLEDGEMENT AND ACCEPTANCE OF ESCROW AGENT
BOKF, NA hereby acknowledges and accepts its appointment as Escrow Agent
pursuant to Section 1 hereof, as of this ________ day of ____________, ____.
BOKF, NA, as Escrow Agent
By: _______________________________
Printed Name: _______________________
Title: ______________________________
400873v2
SCHEDULE #____________
EXHIBIT B-1
PAYMENT REQUEST FORM NO. ____________
Lessee: City of Fresno
Date:
Escrow Agreement (“Agreement”) Dated as of: _______________________
The Undersigned Acknowledges and Represents that:
In accordance with Section 3 of the Agreement, the Lessee hereby authorizes and
requests a disbursement from the Escrow Fund to pay the amounts to the payees
identified herein for certain Equipment costs.
The Lessee hereby represents and warrants for all purposes that:
1. Pursuant to the invoice attached hereto, the amount to be disbursed
is $________.
2. Payment is to be made to: Payee: __________________________
__________________________
__________________________
3. The amount to be disbursed constitutes the Purchase Price, or
portion thereof, of the Equipment cost, said amount is required to be disbursed
pursuant to a purchase contract entered into therefor by and on behalf of the
Lessee, or was necessarily or reasonably incurred, and said amount is not being
paid in advance of time, if any, fixed for any payment.
4. The Equipment relating to such Purchase Price, or portion thereof,
has been delivered and accepted or the materials have been furnished for which
disbursement is required.
5. No amount set forth in this Payment Request Form was included in
any Payment Request Form previously submitted.
6. Acquisition and installation of the applicable portion of the Equipment
for which payment is being requested has been completed in accordance with
plans and specifications approved by the Lessee and in accordance with the terms
and conditions of the purchase contract. Said applicable portion of the Equipment
is suitable and sufficient for the expected uses thereof, but this statement is made
-2-
400873v2
without prejudice to any rights against third parties which exist at the date hereof
or which may subsequently come into being.
7. If the amount to be disbursed constitutes final payment for all of the
Equipment, there is attached hereto an original of the Acceptance Certificate,
Exhibit A-1 to the Lease (as such term is defined in the Agreement), executed by
an authorized officer of Lessee.
8. Each disbursement hereby requested has been incurred and is a
proper charge against the Escrow Fund. No amount hereby requested to be
disbursed will be paid to Lessee as reimbursement for any expenditure paid by
Lessee more than 60 days prior to the date of execution and delivery of the Lease.
Approved:
LESSEE: LESSOR:
CITY OF FRESNO
By:
Printed Name:
Title:
Date:
BANC OF AMERICA PUBLIC CAPITAL CORP
By:
Printed Name:
Title:
Date:
400873v2
EXHIBIT B-2
ESCROW FUND DRAW SCHEDULE
ANTICIPATED PAYMENT DATE PAYMENT AMOUNT
Total:
400873v2
EXHIBIT B-3
ESCROW AGENT FEE SCHEDULE
Acceptance Fee: ................................................................................................... Waived
This one-time fee is payable at closing and includes the fee of Escrow Counsel, at cost,
review of the documents, participation in conference calls, establishing records and
accounts, authentication and delivery of bonds, receipt of funds, and attendance at
closing (if requested).
Escrow Administration Fee: .................................................................................. $500.00
Covers the day to day duties of providing Escrow services. Due in advance at closing.
Transaction Fees:........................................................................................................ N/A
All prices reflect the Escrow Proceeds and additional Escrow Deposits will be invested in
a sweep fund.
Charges for performing extraordinary or other services not contemplated at the time of
the execution of the transaction will be determined by appraisal in amounts
commensurate with the service to be provided. Reasonable counsel fees, if ever retained
as a result of an extraordinary occurrence will be billed at cost.
Services not included in this Fee Schedule, but deemed necessary or desirable by the
City of Fresno, may be subject to additional charges based on a mutually agreed upon
fee schedule.
City of Fresno
Staff Report
2600 Fresno Street
Fresno, CA 93721
www.fresno.gov
File #:ID 25-71 Agenda Date:1/30/2025 Agenda #:2.-I.
REPORT TO THE CITY COUNCIL
FROM:BRYON HORN, Chief Information Officer
Information Services Department
BY:DENNIS JONES, Systems & Applications Manager
Information Services Department
SUBJECT
Approve the Award of a Cooperative Purchase Agreement with Shade & Partners Technology
Solutions, Inc. for the purchase of the Cornerstone Learning Management system for a three-year
term, with two optional year extensions, in the amount of $207,714.50 for year one with annual
renewals not to exceed 10% more than the previous year.
RECOMMENDATION
Staff recommends Council approve a three-year Cooperative Purchase Agreement with Shade &
Partners Technology Solutions, Inc. of the Cornerstone Learning Management system in the amount
of $207,714.50 for year one, under the State of California Software Licensing Program - SLP-24-70-
0176G with two optional one year extensions under the cooperative purchasing agreement - SLP-24-
70-0176G or extensions of that agreement by the State of California DSG SLP. Additional annual
renewals not to exceed more than 10% over the previous year during the term.
EXECUTIVE SUMMARY
The City of Fresno is using an online hosted training solution allowing a wide variety of training and
learning content for its employees to be taken online. It also includes advanced tools to help
Personnel Services manage the training and the content in a more efficient manner. The City
currently employs over 4,700 employees including seasonal temporary staff and interns. The on-
demand availability of courses offered in the Cornerstone Learning Management System creates an
enhanced learning environment for all staff. The City strives to foster growth and development for
employees and Cornerstone is instrumental in achieving the goal.
BACKGROUND
The City began a project in 2021 to implement the Cornerstone Learning Content Management
system. This system is a hosted solution and is designed to deliver online learning content and
advanced tools to allow management and tracking of in-person and online employee training.
Previous annual renewals of the Cornerstone service were approved and acquired under a
cooperative purchasing agreement through the State of California Software Licensing Program -
City of Fresno Printed on 2/7/2025Page 1 of 2
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01-30-2025
MA/AP 6-0
DISTRICT 5 (VACANT) ABSENT
APPROVED ON CONSENT
File #:ID 25-71 Agenda Date:1/30/2025 Agenda #:2.-I.
DGS SLP-19-70-0176B, which has since expired.
The previous cooperative purchasing agreement was replaced by the current State of California
Software Licensing Program - DGS SLP-24-70-0176G.
ENVIRONMENTAL FINDINGS
By definition of the California Environmental Quality Act (CEQA)Guidelines Section 15378,the
approval of this agreement does not qualify as a “project” as defined by CEQA.
LOCAL PREFERENCE
Local preference not applicable because the City is using a cooperative purchase agreement to
purchase this software license.
FISCAL IMPACT
The approved FY25 budget contains funding for this item.
Attachment:
Cooperative Purchasing Agreement
City of Fresno Printed on 2/7/2025Page 2 of 2
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GSD-S Formal Cooperative Purchase Agt.(10-2023)
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FORMAL COOPERATIVE PURCHASE AGREEMENT
THIS AGREEMENT (Agreement) is made and entered into EFFECTIVE
___________________ by and between CITY OF FRESNO, a California municipal
corporation (City), and SHADE & PARTNERS TECHNOLOGY SOLUTIONS, a California
corporation (Vendor).
AGREEMENT
NOW, THEREFORE, in consideration of the foregoing and of the covenants,
conditions, and promises hereinafter contained to be kept and performed by the
respective parties, it is mutually agreed as follows:
1. The Charter for the City allows for cooperative purchase agreements for materials,
supplies and equipment. The City is allowed to piggyback an existing government
agency’s agreement, under Fresno City Charter 1208. The parties agree the Vendor
established a Software Licensing Program (SLP) contract (SLP-24-70-0176G) in
which ordering agencies may purchase their software products during the term of
the Cornerstone SLP-2024 issued by the State of California Department of
General Services' Software Licensing Program. The SLP -24-70-0176G is attached
hereto as Exhibit A (Original Government Contract) and is incorporated herein by
reference.
2. Vendor’s Obligation. Vendor shall provide those services and carry out that work
described in the City and Vendor Renewal Quote, which is attached hereto as
Exhibit B and is incorporated herein by reference, subject to all the terms and
conditions contained in the Original Government Contract or incorporated herein.
3. City’s Obligation. City shall make to the Vendor those payments described in
Exhibit B, subject to all the terms and condition contained or incorporated herein.
4. Notwithstanding the requirements that the Original Government Contract is fully
binding on the Parties, the parties have agreed to modify certain non-material
provisions of the Original Government Contract as applied to this Agreement
between the Vendor and the City, as follows:
a) City’s Insurance and Indemnity provisions attached as Exhibit C.
b) Address change for the City: Notwithstanding the address and contract
information for the government entity as set out in Exhibit B, the Vendor agrees that
notices and invoices will be sent to:
City of Fresno
Attention: Stephanie Ciehoski
2600 Fresno Street, Room 1059
Fresno, CA 93721
Phone: (559) 621-7180
E-mail: Stephanie.Ciehoski@fresno.gov
FAX: (559) XXX-XXXX
GSD-S Formal Cooperative Purchase Agt.(10-2023)
-2-
c) Notwithstanding anything in Exhibits A and B to the contrary, this Agreement
shall be governed by, and construed and enforced in accordance with , the laws of
the State of California, excluding however, any conflict of laws rule which would apply
the law of another jurisdiction. Venue for purposes of the filing of any action regarding
the enforcement or interpretation of this Agreement and any rights and duties
hereunder shall be Fresno County, California.
d) All other provisions in the Original Government Contract are fully binding on
the parties and will represent the agreement between the City and the Vendor.
[Signatures follow on the next page.]
-3-
GSD-S Formal Cooperative Purchase Agt.(10-2023)
364606v1
IN WITNESS WHEREOF, the parties have executed this Agreement at Fresno,
California, the day and year first above written.
CITY OF FRESNO,
a California municipal corporation
By:
Melissa Perales
Purchasing Manager
General Services Department
No signature of City Attorney required.
Standard Document #GSD-S Formal
Cooperative Purchase Agt. (10-2023)
has been used without modification, as
certified by the undersigned.
By:
Dyan Ayala
Procurement Specialist
ATTEST:
TODD STERMER, CMC
City Clerk
By:
Date
Deputy
Addresses:
CITY
City of Fresno
Attention: Dennis Jones
2600 Fresno Street, Room 1059
Fresno, CA 93721
Phone: (559) 621-7117
E-mail: Dennis.Jones@fresno.gov
SHADE & PARTNERS TECHNOLOGY
SOLUTIONS, a California Corporation
By:
Name:
Title:
(If corporation or LLC., Board
Chair, Pres. or Vice Pres.)
By:
Name:
Title:
(If corporation or LLC., CFO, Treasurer,
Secretary or Assistant Secretary)
Vendor:
Shade & Partners Technology Solutions
Attention: Chris Shade
5098 Foothills Blvd Ste 3-351
Roseville, CA 95747
Phone: (916) 276-1127
E-mail: Chris@sp-ega.com
Attachments:
Exhibit A - Original Government Contract
Exhibit B - City and Vendor Renewal Quote
Exhibit C - City’s Insurance and Indemnity
EXHIBIT A
Original Government Contract
707 3rd Street, 2ndFloor | West Sacramento, CA 95605 | t 916.375-4400
Procurement Division
707 Third Street, 2nd Floor, MS #2-202
West Sacramento, CA 95605-2811
State of California
SOFTWARE LICENSING PROGRAM (SLP) AGREEMENT
Contractor:
Contract Number:
SLP Contract Term:
Contract Base:
Shade & Partners Technology Solutions
SLP-24-70-0176G
05/11/2024 through 05/11/2027
CornerStone Offer Number CornerStone-SLP-2024
This contract is available for use by State of California departments and any city, county,
special district, educational agency, local government body or corporation empowered to
expend public funds. While the state makes this contract available, each local agency should
make its own determination whether the SLP is consistent with their procurement policies and
regulations.
The SLP Contractor is required to provide all SLP contract terms and conditions with the list
of products, services and prices.
Terms and conditions listed below are hereby incorporated by reference and made a part of
this SLP Agreement as if attached herein and shall apply to the purchase of goods or
services made under this Participating Agreement. Contractor non-compliance with the
requirements of this contract may result in contract termination.
By signing below, Contractor agrees to the General Provisions dated June 21, 2022,
SaaS Cloud Computing Services Special Provisions dated March 15, 2018 and all other
provisions included herein.
1) General Provisions – Information Technology (GSPD-401IT) effective 6/21/22
2) Cloud Computing Services Special Provisions (Software as a Service) effective
3/15/2018
3) General Provisions – Information Technology Cloud Computing Software as a Service
(SaaS) effective 6/21/22
For State of CA:
For Stephanne Lim
Manager
Multiple Award Programs Section
Procurement Division
Department of General Services
05/08/2024
Date
President/CEO
Printed Title
Chris Shade
Printed Name
Shade & Partners Technology Solutions
Company Name
5/3/2025
Date
For Contractor:
Signature
707 3rd Street, 2ndFloor | West Sacramento, CA 95605 | t 916.375-4400
Procurement Division | State of California | California Government Operations Agency
SOFTWARE LICENSING PROGRAM (SLP)
Shade & Partners Technology Solutions
SLP-24-70-0176G
BUILDING GREEN • BUYING GREEN • WORKING GREEN 2
CONTRACTOR PROVIDES COPY OF
THE CONTRACT AND SUPPLEMENTS
The SLP Contractors are required to
provide the entire contract that consists of
the following:
• SLP Cover sheet with signatures from
the DGS Procurement Division Deputy
Director or designee and Contractor.
• Ordering instructions.
• Std. 204 Payee Data Record.
• SLP Contract terms and conditions
(General provisions).
• Software License Agreement pricing.
• Supplements, if applicable
CONTRACTOR QUARTERLY REPORTS
SLP Contractors are required to submit
a detailed SLP Business Activity Report
on a quarterly basis to the SLP Unit.
This report shall be e-mailed to the SLP
Unit general e-mail:
SLP@DGS.CA.GOV
Alternatively, this report can be mailed to:
Department of General Services
Procurement Division – SLP Unit
Attention: Quarterly Report Processing
707 Third Street, MS #2-202
West Sacramento, CA 95605
Reports that include paper checks for
quarterly incentive fees must be mailed
and shall not be e-mailed.
For the full instructions on completing and
submitting SLP Quarterly Business Activity
Reports, reference “ATTACHMENT A” of
this agreement.
Important things to remember regarding
SLP Quarterly Business Activity Reports:
• A report is required for each SLP, each
quarter, even when no new purchase
orders are received in the quarter.
• A separate report is required for each
SLP agreement.
• Each purchase order must be
reported only once in the quarter
identified by the purchase order
date, regardless of when the
services were performed, the
products were delivered, the invoice
was sent, or the payment was
received.
• Purchase orders from State and local
government agencies must be
separated on the report, as shown in
the instructions.
• Any report that does not follow the
required format or excludes required
information will be deemed incomplete
and returned to the SLP contractor for
corrections.
• Taxes and freight must not be included
in the report.
• New SLP agreements, renewals, and
amendments will be approved only if
the SLP contractor has submitted all
required quarterly reports and incentive
fees.
• A quarterly report is required even
when there is no activity.
SLP Quarterly Business Activity Reports
are due in the SLP Unit within two weeks
after the end of each quarter as shown
below:
Quarter 1 Jan 1 to Mar 31 Due Apr 15
Quarter 2 Apr 1 to Jun 30 Due Jul 15
Quarter 3 Jul 1 to Sep 30 Due Oct 15
Quarter 4 Oct 1 to Dec 31 Due Jan 15
SOFTWARE LICENSING PROGRAM (SLP)
Shade & Partners Technology Solutions
SLP-24-70-0176G
BUILDING GREEN • BUYING GREEN • WORKING GREEN 3
CONTRACTOR QUARTERLY
INCENTIVE FEES
All SLP contractors, including certified
Small Businesses and Disabled Veteran
Business Enterprises, will be required to
pay incentive fees for all orders placed by
local government agencies. See the
current incentive fees in the DGS Price
Book (https://www.dgs.ca.gov/OFS/Price-
Book).
A local government agency is any city,
county, district, or other local governmental
body, including the California State
University (CSU) and University of
California (UC) systems, K-12 public
schools and community colleges
empowered to expend public funds.
Local incentive fee payments may be
made with a paper check, electronic check
or credit card.
Contractor may make an electronic check
or credit card payment through the LPA
Payment Portal
(https://www.dgs.ca.gov/PD/Services/Page
-Content/Procurement-Division-Services-
List-Folder/Access-LPA-Payment-Portal).
If payment is made with a paper check, the
check shall be made payable to the
Department of General Services, SLP Unit,
and must be mailed to the SLP Unit along
with the applicable Quarterly Report.
See the provision in this SLP entitled
“Contractor Quarterly Report Process” for
information on when and where to send
these checks and reports.
CONTRACTOR INVOICES
Unless otherwise stipulated, the contractor
must send their invoices to the department
address set forth in the purchase order.
Invoices shall be submitted in triplicate and
shall include the following:
• Contract number
• Agency purchase order number
• State Agency Bill Code
• Line item number
• Unit price
• Extended line item price
• Invoice total
State sales tax and/or use tax shall be
itemized separately and added to each
invoice as applicable. The company name
on the SLP contract, purchase order and
invoice must match or the State
Controller’s Office will not approve
payment.
CONTRACTOR OWNERSHIP
INFORMATION
Shade & Partners is a certified small and
DVBE business enterprise. Their Office of
Small Business and DVBE Services
(OSDS) certification number is #1747904.
The current expiration date for this
company’s certification should be verified
at: CaleProcure
(https://caleprocure.ca.gov/
pages/index.aspx) or by contacting the
Office of Small Business and DVBE
Services at (916) 375-4940. Note that
some companies have been assigned a
new certification number, so use the
company name and/or certification number
when checking status on-line.
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
SOFTWARE LICENSING PROGRAM (SLP)
Shade & Partners Technology Solutions
SLP-24-70-0176G
BUILDING GREEN • BUYING GREEN • WORKING GREEN 4
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 thirty (30) calendar days
to provide a written response. Termination
shall be at the sole discretion of the State.
AGENCY NON-COMPLIANCE
Agency non-compliance with the
requirements of this contract may result in
the loss of delegated purchasing authority
to use the SLP.
PLEASE REQUEST A COPY OF ALL
CONTRACT TERMS AND CONDITIONS
FROM THE CONTRACTOR, IF NOT
PROVIDED INITIALLY.
AVAILABLE PRODUCTS AND/OR
SERVICES
This contract may provide for the purchase
and warranty of software, software
maintenance, training, software as a
service and implementation services.
Only products from the manufacturer listed
below are available within the scope of this
contract:
• CornerStone
UNAVAILABLE PRODUCTS AND/OR
SERVICES
The following products and/or services are
not available under this contract:
• STANDALONE HARDWARE
• CONSULTING
• TELECOMMUNICATION PRODUCTS
Notice to State Agencies: Software
appliances/hardware products offered
under the Software Publisher’s pricelist are
NOT available under the Software
Licensing Program (SLP) if the same type
of software appliance/hardware products
are currently available under any
mandatory Statewide Contract. State
agencies who want to purchase a software
appliance/hardware product type, other
than what is available through a
mandatory Statewide Contract must submit
an exemption request to the mandatory
Statewide Contract Administrator. For
more information and the required
justification forms regarding the exemption
process, please refer to the following
website:
https://www.dgs.ca.gov/PD/Services/Page-
Content/Procurement-Division-Services-
List-Folder/Request-an-IT-Hardware-
Contract-Exemption. This restriction does
not apply to local governmental agencies.
IMPLEMENTATION SERVICES
Before procuring Implementation Services,
state departments should conduct an
analysis and use their own due diligence to
determine if these services are the most
cost effective solution that meets their
business needs and security requirements.
SOFTWARE LICENSING PROGRAM (SLP)
Shade & Partners Technology Solutions
SLP-24-70-0176G
BUILDING GREEN • BUYING GREEN • WORKING GREEN 5
Requirements
• State departments must complete a
Statement of Work (SOW) for all
Implementation services.
• Job titles/categories are limited to those
identified in the SLP price list.
• Hourly rates must not exceed those
identified in the SLP price list.
• Implementation services can only be
purchased when they are in support of
software purchased under the SLP.
• Time and Material pricing must not
exceed the job Title hourly rate times
the number of hours to complete the job.
NOTE: Implementation Services under
this contract must be paid in arrears.
SOFTWARE MAINTENANCE,
SUBSCRIPTION AND SAAS RENEWALS
Software Maintenance, Subscription and
SaaS renewals shall be fixed at the
agencies prior applicable rates (or lower),
with a 0% uplift (no up-lift) and no
additional increases, fees or charges
added, for the duration of this SLP
contract.
SERVICE CREDITS
Service credits are acceptable only if they
meet the following requirements:
• Service credits must be used for
training, certifications, or support
and must never expire even when
this contract term ends.
• Unused service credits can be used
for other services such as training,
certification, or support. Example: If
$1,000 is purchased in training
credits but is not fully utilized, the
department may use the remainder
of unused credits for certifications or
support.
ISSUE PURCHASE ORDER TO
Agency purchase orders must be mailed to
the following address, or e-mailed:
Shade & Partners Technology
5098 Foothills Blvd Ste 3-351
Roseville, CA 95747
Attn: Chris Shade
Agencies with questions regarding
products and/or services may contact the
contractor as follows:
Phone: (916) 276-1127
E-mail: chris@sp-ega.com
SHIPPING INSTRUCTIONS
F.O.B. (Free On Board) Destination
DELIVERY
30 days after receipt of order, or as
negotiated between agency and Contractor
and included in the purchase order.
AGENCY RESPONSIBILITY
Agencies must contact contractors to
obtain copies of the contracts and compare
them for a best value purchasing decision.
Each agency is responsible for its own
contracting program and purchasing
decisions, including use of the SLP
program and associated outcomes.
This responsibility includes, but is not
necessarily limited to, ensuring the
necessity of the services, securing
SOFTWARE LICENSING PROGRAM (SLP)
Shade & Partners Technology Solutions
SLP-24-70-0176G
BUILDING GREEN • BUYING GREEN • WORKING GREEN 6
appropriate funding, complying with laws
and policies, preparing the purchase order
in a manner that safeguards the State’s
interests, obtaining required approvals, and
documenting compliance with Government
Code 19130.b (3) for outsourcing services.
It is the responsibility of each agency to
consult as applicable with their legal staff
and contracting offices for advice
depending upon the scope or complexity of
the purchase order.
If you do not have legal services available
to you within your agency, the DGS Office
of Legal Services is available to provide
services on a contractual basis.
ORDER REQUIREMENTS AND
MAXIMUM ORDER LIMIT
• Unless otherwise determined by an
individual ordering agency purchasing
authority, no SLP order may be
executed by a State agency that
exceeds that agency’s purchasing
authority threshold. State agencies with
approved purchasing authority, along
with their dollar thresholds can be
obtained at the List of State
Departments with Approved Purchasing
Authority.
• Agencies must adhere to the detailed
requirements in the State Contracting
Manual (SCM) when using SLP
contracts. The requirements for the
following bullets are in the SCM, Volume
2, (for IT): If soliciting offers from a
certified DVBE, include the Disabled
Veteran Business Enterprise
Declarations form (Std. 843) in the
Request for Offer. This declaration
must be completed and returned by the
DVBE prime contractor and/or any
DVBE subcontractors. (See the SCM
Volume 2, Chapter 1200)
• This is not a bid transaction, so the
small business preference, DVBE
participation goals, protest language,
intents to award, evaluation criteria,
advertising, etc., are not applicable.
• If less than 3 offers are received, State
agencies must document their file with
the reasons why the other suppliers
solicited did not respond with an offer.
• Assess the offers received using best
value methodology, with cost as one of
the criteria.
• Issue a Purchase Order to the selected
contractor.
• For SLP transactions under $10,000,
only one offer is required if the State
agency can establish and document that
the price is fair and reasonable. The fair
and reasonable method can only be
used for non-customizable purchases.
Local governments set their own order
limits, and are not bound by the order limits
on the cover page of this contract.
SPLITTING ORDERS
Splitting orders to avoid any monetary
limitations is prohibited.
Do not circumvent normal procurement
methods by splitting purchases into a
series of delegated purchase orders (SAM
3572).
Splitting a project into small projects to
avoid either fiscal or procedural controls is
prohibited (SAM 4819.34).
MINIMUM ORDER LIMITATION
There is no minimum dollar value limitation
on orders placed under this contract.
SOFTWARE LICENSING PROGRAM (SLP)
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SLP-24-70-0176G
BUILDING GREEN • BUYING GREEN • WORKING GREEN 7
ORDERING PROCEDURES
1. Order Form
State departments shall use a
Contract/Delegation Purchase Order
(Std. 65) for purchases and services.
Local governments shall, in lieu of the
State's Purchase Order (Std. 65), use
their own purchase order document.
Electronic copies of the State Standard
Forms can be found at the Office of
State Publishing web site:
http://www.dgs.ca.gov/osp (select
Standard Forms). The site provides
information on the various forms and
use with the Adobe Acrobat Reader.
Beyond the Reader capabilities, Adobe
Acrobat advanced features may be
utilized if you have Adobe Business
Tools or Adobe Acrobat 4.0 installed on
your computer. Direct link to the
Standard Form 65:
(http://www.osp.dgs.ca.gov/pdf/std065.p
df)
2. Purchase Orders
All Ordering Agency purchase order
documents executed under this SLP
must contain the applicable SLP
contract number as show on page 1.
1. State Departments:
Std. 65 Purchase Documents –
State departments not transacting
in FI$Cal must use the Purchasing
Authority Purchase Order (Std. 65)
for purchase execution. An
electronic version of the Std. 65 is
available at the DGS-PD website
at http://www.dgs.ca.gov/
pd/Forms.aspx (select Standard
STD Forms).
FI$Cal Purchase Documents –
State departments transacting in
FI$Cal will follow the FI$Cal
procurement and contracting
procedures.
2. Local Governmental Departments:
Local governmental agencies may
use their own purchase document
for purchase execution.
The agency is required to complete and
distribute the order form. For services,
the agency shall modify the information
contained on the order to include the
service period (start and end date), and
the monthly cost (or other intermittent
cost), and any other information
pertinent to the services being provided.
The cost for each line item should be
included in the order, not just system
totals.
The contractor must immediately reject
orders that are not accurate.
Discrepancies are to be negotiated and
incorporated into the order prior to the
products and services being delivered.
3. Service and Delivery after Contract
Expiration
Purchase orders must be issued before
the SLP contract end term expires.
Also, purchase order amendments
cannot be issued to add product and
software maintenance if the SLP
contract end term has expired.
CONTRACT PRICES
Contract prices for products and/or
services are maximums. The ordering
department is encouraged to negotiate
lower prices.
SOFTWARE LICENSING PROGRAM (SLP)
Shade & Partners Technology Solutions
SLP-24-70-0176G
BUILDING GREEN • BUYING GREEN • WORKING GREEN 8
PRODUCT AND PRICING CHANGES
AND/OR UPDATES ARE NOT
AUTHORIZED UNTIL REVIEWED AND
APPROVED BY DGS PROCUREMENT
DIVISION SOFTWARE LICENSING
PROGRAM.
Said documents are to be sent to the
Department of General Services (DGS)
Procurement Division, Software Licensing
Program, 707 Third Street, 2nd Floor, West
Sacramento, CA 95605-2811, Attention
SLP Unit.
CONTRACT EXTENSIONS
The initial term of this SLP contract is 3
years and may be extended for an
additional 2-years, however an amendment
must be issued prior to contract end date.
NOTE: Extensions are optional and are
at the discretion of the state.
SMALL BUSINESS MUST BE
CONSIDERED
Prior to placing orders under the SLP, state
departments shall, whenever practicable,
first consider offers from small businesses
that have established SLP contracts [GC
Section 14846(b)]. NOTE: The
Department of General Services auditors
will request substantiation of compliance
with this requirement when department
files are reviewed.
SMALL BUSINESS/DVBE – TRACKING
State departments are able to claim
subcontracting dollars towards their small
business or DVBE goals whenever the
Contractor subcontracts a commercially
useful function to a certified small business
or DVBE. The Contractor will provide the
ordering department with the name of the
small business or DVBE used and the
dollar amount the ordering department can
apply towards its small business or DVBE
goal.
SMALL BUSINESS/DVBE -
SUBCONTRACTING
1. The amount an ordering department
can claim towards achieving its small
business or DVBE goals is the dollar
amount of the subcontract award made
by the Contractor to each small
business or DVBE.
2. The Contractor will provide an ordering
department with the following
information at the time the order is
quoted:
a. The Contractor will state that, as the
prime Contractor, it shall be
responsible for the overall execution
of the fulfillment of the order.
b. The Contractor will indicate to the
ordering department how the order
meets the small business or DVBE
goal, as follows:
• List the name of each company
that is certified by the Office of
Small Business and DVBE
Certification that it intends to
subcontract a commercially
useful function to; and
• Include the small business or
DVBE certification number of
each company listed, and attach
a copy of each certification; and
• Indicate the dollar amount of
each subcontract with a small
business or DVBE that may be
claimed by the ordering
department towards the small
business or DVBE goal; and
• Indicate what commercially
useful function the small
business or DVBE subcontractor
SOFTWARE LICENSING PROGRAM (SLP)
Shade & Partners Technology Solutions
SLP-24-70-0176G
BUILDING GREEN • BUYING GREEN • WORKING GREEN 9
will be providing towards
fulfillment of the order.
3. The ordering department’s purchase
order must be addressed to the prime
Contractor, and the purchase order
must reference the information provided
by the prime Contractor as outlined
above.
CERTIFICATION OF PAYMENT
OPTIONS - Military & Vets Code §§999.5
and 999.7(a) (SB588)
In accordance with the State Contracting
Manual, Volume 2, Section 1203.1, State
departments shall require the Contractor to
submit a complete an accurate Prime
Contractor’s Certification – DVBE
Subcontracting Report (STD. 817) upon
acceptance of ordered goods or services for
which the Contractor committed to DVBE
subcontractor participation.
Upon delivery or completion of ordered
goods or services, State departments shall
do the following:
• Provide proper withhold notification to
prime contractors.
• Withhold $10,000 or the full amount of
the final invoice if less than $10,000
pending receipt of the complete and
accurate STD 817.
• Review the STD 817. If it is
determined to be complete and
accurate, authorize payment of the
withhold.
• If the STD 817 is late or incomplete,
department must send the prime
contractor a cure notice allowing at
least 15 days, but not more than 30
days, to meet the Certification of
Payments to DVBE Subcontractors
requirements.
• If the prime contractor does not
comply by the identified deadline,
permanently deduct the withhold.
Retain all records for a minimum of six years.
PRODUCTIVE USE REQUIREMENTS
The customer in-use requirement applies
to all procurements of information
technology equipment and software, per
the SCM, Volume 2, Chapter 1000, Section
1007.
Each equipment or software component
must be in current operation for a paying
customer and the paying customer must be
external to the contractor’s organization
(not owned by the contractor and not
owning the contractor).
To substantiate compliance with the
Productive Use Requirements, the SLP
contractor must provide upon request the
name and address of a customer
installation and the name and telephone
number of a contact person.
The elapsed time such equipment or
software must have been in operation is
based upon the importance of the
equipment or software for system
operation and its cost. The following
designates product categories and the
required period of time for equipment or
software operation prior to approval of the
replacement item on SLP.
Category 1 - Critical Software: Critical
software is software that is required to
control the overall operation of a computer
system or peripheral equipment. Included
in this category are operating systems,
data base management systems, language
interpreters, assemblers and compilers,
communications software, and other
essential system software.
SOFTWARE LICENSING PROGRAM (SLP)
Shade & Partners Technology Solutions
SLP-24-70-0176G
BUILDING GREEN • BUYING GREEN • WORKING GREEN 10
Final Bid
Cost Installation Submission
More than
$100,000 8 months 6 months
$10,000 up to
$100,000 4 months 3 months
Less than
$10,000 1 month 1 month
Category 2 - All Information Technology
Equipment and Non-Critical Software:
Information technology equipment is
defined in State Administrative Manual
(SAM) § 4819.2.
Final Bid
APPLICABLE CODES, POLICIES AND
GUIDELINES
All California codes, policies and guidelines
are applicable. THE USE OF THE SLP
DOES NOT REDUCE OR RELIEVE
STATE DEPARTMENTS OF THEIR
RESPONSIBILITY TO MEET STATEWIDE
REQUIREMENTS REGARDING
CONTRACTING OR THE
PROCUREMENT OF GOODS OR
SERVICES. Most procurement and
contract codes, policies, and guidelines are
incorporated into The SLP contracts.
Notwithstanding this, there is no guarantee
that “every” possible requirement that
pertains to all the different and unique state
Cost Installation Submission
More than
$100,000 6 months 4 months
$10,000 up
to $100,000 4 months 3 months
Less than
$10,000 1 month 1 month
STATE AND LOCAL GOVERNMENTS
CAN USE THE SLP
State and local government use of the SLP
contracts is optional. A local government
is any city, county, special district or other
local governmental body or corporation,
including UC, K-12 schools and community
colleges,
that is empowered to expend public funds.
While the state makes this contract
available, each local government agency
should make its own
determination whether the SLP is
consistent with their procurement policies
and regulations.
processes has been included.
TERMINATION OF SLP CONTRACT
1. The State or Contractor may terminate
this SLP Contract at any time upon 30
days prior notice.
2. Upon termination or other expiration of
this Contract, each party will assist the
other party in orderly termination of the
Contract and the transfer of all assets,
tangible and intangible, as may
facilitate the orderly, nondisrupted
business continuation of each party.
3. This provision shall not relieve the
Contractor of the obligation to perform
under any purchase order or other
similar ordering document executed
prior to the termination becoming
effective.
STATEWIDE PROCUREMENT
REQUIREMENTS
Departments must carefully review and
adhere to the following Procurement
Requirements, such as:
SOFTWARE LICENSING PROGRAM (SLP)
Shade & Partners Technology Solutions
SLP-24-70-0176G
BUILDING GREEN • BUYING GREEN • WORKING GREEN 11
•SAM Section 4819.41 and 4832
certifications for information technology
procurements and compliance with
policies.
•Services may not be paid for in
advance.
•Departments are required to file with the
Department of Fair Employment and
Housing (DFEH) a Contract Award
Report Std. 16 for each order over
$5,000 within 10 days of award,
including supplements that exceed
$5,000.
•Pursuant to Unemployment Insurance
Code Section 1088.8, state and local
government agencies must report to the
Employment Development Department
(EDD) all payments for services that
equal $600 or more to independent sole
proprietor contractors. See the
contractor's Std. Form 204, Payee Data
Record, in the SLP contract to
determine sole proprietorship. All
inquiries regarding this subject should
be forwarded to EDD: Technical
questions: 916/651-6945 or Information
and forms: 916/657-0529.
•Annual small business and disabled
veteran reports.
ETHNICITY/RACE/GENDER REPORTING
REQUIREMENT
Effective July 1, 2002, in accordance with
Public Contract Code 10116, state
departments are to capture information on
ethnicity, race, and gender of business
owners (not subcontractors) for all
awarded contracts, including CAL-Card
transactions. Each department is required
to independently report this information to
the Governor and the Legislature on an
annual basis.
Departments are responsible for
developing their own guidelines and forms
for collecting and reporting this information,
Contractor participation is voluntary.
PAYMENTS AND INVOICES
1.Payment Terms
Payment will be made in accordance
with the provisions of the California
Prompt Payment Act, Government
Code Section 927 et. seq. Unless
expressly exempted by statute, the
Act requires State agencies to pay
properly submitted, undisputed
invoices not more than 45 days after
(i) the date of acceptance of goods or
performance of services; or (ii) receipt
of an undisputed invoice, whichever is
later.
2.Advance Payments
Advance payment is allowed for
services only under limited, narrowly
defined circumstances, e.g. between
specific departments and certain
types of non-profit organizations, or
when paying another government
agency (Government Code (GC) §
11256 – 11263 and 11019).
It is NOT acceptable to pay in
advance, except software
maintenance and license fees, which
are considered a subscription and
may be paid in advance if a provision
addressing payment in advance is
included in the purchase order.
Software warranty upgrades and
extensions may also be paid for in
advance, one time.
3.Payee Data Record (Std. 204)
SOFTWARE LICENSING PROGRAM (SLP)
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BUILDING GREEN • BUYING GREEN • WORKING GREEN 12
State Agencies not transacting in
FI$Cal, must obtain a copy of the
Payee Data Record (Std. 204) in
order to process payments. State
Ordering Agencies forward a copy of
the Std. 204 to their accounting
office(s). Without the Std. 204,
payment may be unnecessarily
delayed. State Agencies should
contact the Contractor for copies of
the Payee Data Record
4. DGS Administrative Fees
Orders from State Agencies:
The Department of General Services
(DGS) will bill each State agency
directly an administrative fee for use
of SLP contracts. The administrative
fee should NOT be included in the
order total, nor remitted before an
invoice is received from DGS.
5. Credit Card
The Contractor accepts the State of
California credit card (CAL-Card).
A Purchasing Authority Purchase
Order (Std. 65) is required even when
the ordering department chooses to
pay the contractor via the CAL-Card.
Also, the DGS administrative fee is
applicable for all SLP orders to
suppliers not California certified as a
small business.
FEDERAL DEBARMENT
When federal funds are being expended,
the department is required to obtain (retain
in file) a signed “Federal Debarment”
certification from the contractor before the
purchase order is issued. This
certification is required by the regulations
implementing Executive Order 12549,
Debarment and Suspension, 29 CFR Part
98, Section 98.510, Participants;
responsibilities. The regulations were
published as Part VII of the May 26, 1988
Federal Register (pages 19160-19211).
AMERICANS WITH DISABILITY ACT
(ADA)
(See attachment B)
DGS PROCUREMENT DIVISION
CONTACT AND PHONE NUMBER
Department of General Services
Procurement Division, SLP Unit
707 Third Street, 2nd Floor
West Sacramento, CA 95605-2811
Phone no.: 916/375-4365
Faxination no.: 916/376-6371
Updated 1/2024
ATTACHMENT A
SLP QUARTERLY BUSINESS ACTIVITY REPORT
Company Name:
Software Publisher:
Contract Number:
For Questions Regarding this Report:
E-mail:
Reporting Calendar Year:
Reporting Quarter: Q1 (January to March)
Q2 (April to June)
Q3 (July to September)
Q4 (October to December)
Check Here if No New Orders for This Quarter
Total State Agency Dollars Reported for Quarter: $
LOCAL GOVERNMENT AGENCY PURCHASES
Local Government Agency
Name
Purchase Order
Number
Purchase
Order Date
Total Dollars Per
Purchase Order
Agency
Contact Agency Address Phone
Number
Total Local Government Agency Dollars for Quarter: $
1.25% Remitted to DGS (of total Local Govt agency dollars reported for quarter): $
Total of State and Local Government Agency Dollars Reported for this Quarter: $
STATE GOVERNMENT AGENCY PURCHASES
State Agency
Name
Purchase
Order Number
Purchase
Order Date
Agency
Billing Code
Total Dollars
Per Purchase
Order
Agency Contact
Agency Address Phone
Number
707 3rd Street, 2ndFloor | West Sacramento, CA 95605 | t 916.375-4400
ATTACHMENT A
SLP QUARTERLY BUSINESS ACTIVITY REPORT
Instructions for completing the SLP Quarterly Business Activity Report.
1. Complete the top of the form with the appropriate information for your company.
2. Agency Name - Identify the State agency or Local Government agency that issued
the order.
3. Purchase Order Number - Identify the purchase order number (and amendment
number if applicable) on the order form. This is not your invoice number. This is the
number the State agency or Local Government agency assigns to the order.
4. Purchase Order Date - Identify the date the purchase order was issued, as shown on
the order. This is not the date you received, accepted, or invoiced the order.
5. Agency Billing Code - Identify the State agency billing code. This is a five-digit
number identified on the upper right hand corner of the Std. 65 purchase order form.
You must identify this number on all purchases made by State of California agencies.
Billing codes are not applicable to Local Government agencies.
6. Total Dollars Per PO - Identify the total dollars of the order excluding tax and freight.
Tax must NOT be included in the quarterly report, even if the agency includes tax on
the purchase order. The total dollars per order should indicate the entire purchase
order amount (less tax and freight) regardless of when you invoice order, perform
services, deliver product, or receive payment.
7. Agency Contact - Identify the ordering agency’s contact person on the purchase
order.
8. Agency Address - Identify the ordering agency’s address on the purchase order.
9. Phone Number - Identify the phone number for the ordering agency’s contact person.
10. Total State Sales & Total Local Sales - Separately identify the total State dollars
and/or Local Government agency dollars (pre-tax) for all orders placed in quarter.
11. 1.25% Remitted to DGS - Identify 1.25% of the total Local Government agency
dollars reported for the quarter.
12. Grand Total - Identify the total of all State and Local Government agency dollars
reported for the quarter.
Notes:
• A report is required for each SLP contract each quarter even when there are no new
orders for the quarter.
• Quarterly reports are due two weeks after the end of the quarter.
Procurement Division | State of California | California Government Operations Agency
Updated 2/06/2018 15
ATTACHMENT B
ADA NOTICE
Procurement Division (State Department of General Services)
AMERICANS WITH DISABILITIES ACT (ADA) COMPLIANCE
POLICY OF NONDISCRIMINATION ON THE BASIS OF DISABILITY
To meet and carry out compliance with the nondiscrimination requirements of
the Americans With Disabilities Act (ADA), it is the policy of the Procurement
Division (within the State Department of General Services) to make every effort
to ensure that its programs, activities, and services are available to all persons,
including persons with disabilities.
For persons with a disability needing a reasonable accommodation to
participate in the Procurement process, or for persons having questions
regarding reasonable accommodations for the Procurement process, please
contact the Procurement Division at (916) 375-4400 (main office); the
Procurement Division TTY/TDD (telephone device for the deaf) or California
Relay Service numbers which are listed below. You may also contact directly
the Procurement Division contact person who is handling this procurement.
IMPORTANT: TO ENSURE THAT WE CAN MEET YOUR NEED, IT IS BEST
THAT WE RECEIVE YOUR REQUEST AT LEAST 10 WORKING DAYS
BEFORE THE SCHEDULED EVENT (i.e., MEETING, CONFERENCE,
WORKSHOP, etc.) OR DEADLINE DUE-DATE FOR PROCUREMENT
DOCUMENTS.
The Procurement Division TTY telephone numbers are:
Sacramento Office: (916) 376-1891
Fullerton Office: (714) 773-2093
The California Relay Service Telephone Numbers are:
Voice: 1-800-735-2922 or 1-888-877-5379
TTY: 1-800-735-2929 or 1-888-877-5378
Speech-to-Speech: 1-800-854-7784
A B C D
1 SaaS/Cloud offerings
2
SKU # Product Description MSRP / List Price SLP Price
3
CSOD-Learning-Suite Learning Included in Suite platform: E-learning, Evaluations, Test engine, ILT, Curriculum Player,
Materials Management Price per Active User / Year; Certifications + Forms; Compliance Pack:
Price per Compliance user / year; Connect platform with Social networking (blogs, wikis, podcasts,
etc.), Knowledge management, People Finder, Price per Active User / Year
$68.00 $64.60
4
CSOD-Learning-LCMS Learning Platform Add-On LCMS: Content Authoring & Course Publisher Price per seat / year $2,720.40 $2,701.36
5 CSOD-Learning-Competencies Learning Platform Add-On Competencies / Dev Plans Price per user / year $9.07 $9.01
6 CSOD-Learning-Cont Learning Platform Add-On Content Delivery Price per Month/Per 10,000 Users $906.80 $900.45
7 CSOD-Perform-Base Performance Platform Included in base platform: $27.20
8 Goals, Reviews Per Active User / Year $27.01
9 CSOD-Perform-Compet-Lib Performance Platform Add-On Competencies / Dev Plans Price per user / year $9.07 $9.01
10 CSOD-Perform-Compen Performance Platform Add-Ons Compensation Price per Compensation user / year $18.14 $18.01
11 CSOD-Success-Base-1 Succession Platform Included in base platform: $22,670.03 $0.00
12
Career Profiles, SMP, People Finder, Candidate Search / Team Builder, Org Charting, Talent Pools
Per Company Size 1 - 1,499
$22,511.40
13 CSOD-Success-Base-1500 Succession Platform Included in base platform: $45,340.05 $0.00
14
Career Profiles, SMP, People Finder, Candidate Search / Team Builder, Org Charting, Talent Pools
Per Company Size 1,500 - 4,999
$45,022.78
15 CSOD-Success-Base-5000 Succession Platform Included in base platform: $68,010.08
16
Career Profiles, SMP, People Finder, Candidate Search / Team Builder, Org Charting, Talent Pools
Per Company Size 5,000 - 7,499
$67,534.17
17 CSOD-Success-Base-7500 Succession Platform Included in base platform: $90,680.10
18
Career Profiles, SMP, People Finder, Candidate Search / Team Builder, Org Charting, Talent Pools
Per Company Size 7,500 - 9,999
$90,045.56
19 CSOD-Success-Base-10000 Succession Platform Included in base platform: $113,350.13
20
Career Profiles, SMP, People Finder, Candidate Search / Team Builder, Org Charting, Talent Pools
Per Company Size 10,000 - 24,999
$112,556.84
21 CSOD-Success-Base-25000 Succession Platform Included in base platform: $136,020.15
22
Career Profiles, SMP, People Finder, Candidate Search / Team Builder, Org Charting, Talent Pools
Per Company Size 25,000 - 49,999
$135,068.34
23 CSOD-Success-Base-50000 Succession Platform Included in base platform: $158,690.18
24
Career Profiles, SMP, People Finder, Candidate Search / Team Builder, Org Charting, Talent Pools
Per Company Size 50,000 - 74,999
$157,579.73
25 CSOD-Success-Base-75000 Succession Platform Included in base platform: $226,700.25
26
Career Profiles, SMP, People Finder, Candidate Search / Team Builder, Org Charting, Talent Pools
Per Company Size 75,000 - 149,999
$225,113.90
27 CSOD-Success-Base-150000 Succession Platform Included in base platform: $272,040.30
28
Career Profiles, SMP, People Finder, Candidate Search / Team Builder, Org Charting, Talent Pools
Per Company Size 150,000+
$270,136.67
29
CSOD-Survey-Add Surveys (Platform Included with any platform: Administration, MyTeam, Standard reports, E-mail
notifications, User Profiles Add-On) Price per user / year
$0.91 $0.90
30
CSOD-Self-Reg-Add Self-registration (Platform Included with any platform: Administration, MyTeam, Standard reports, E-
mail notifications, User Profiles Add-On) Annual Fee
$9,068.01 $9,004.56
31
CSOD-UpTools-Add-1 Upload tools (all) (Platform Included with any platform: Administration, MyTeam, Standard reports,
E-mail notifications, User Profiles Add-On) Annual Fee (up to 7,500)
$4,534.01 $4,502.28
A B C D
32
CSOD-UpTools-Add-7500 Platform Included with any platform: Administration, MyTeam, Standard reports, E-mail
notifications, User Profiles Add-On Upload tools (all) Annual Fee (over 7,500)
$10,881.61 $10,805.47
33
CSOD-Lang-Pack Language Packs One-time Fee. This fee is required with the purchase of any new language pack.
All language packs are also subject to annual existing language fees.
$22,670.03 $22,511.40
34
CSOD-Onboard-1 Solution: Onboarding Included in onboarding platform: Onboarding, Engine, Forms, Curriculum
Player Annual Cost Company Size 1 - 1,499
$22,670.03 $22,511.40
35
CSOD-Onboard-1500 Solution: Onboarding Included in onboarding platform: Onboarding, Engine, Forms, Curriculum
Player Annual Cost Company Size 1,500 - 4,999
$36,272.04 $36,018.23
36
CSOD-Onboard-5000 Solution: Onboarding Included in onboarding platform: Onboarding, Engine, Forms, Curriculum
Player Annual Cost Company Size 5,000 - 7,499
$54,408.06 $54,027.33
37
CSOD-Onboard-7500 Solution: Onboarding Included in onboarding platform: Onboarding, Engine, Forms, Curriculum
Player Annual Cost Company Size 7,500 - 9,999
$68,010.08 $67,534.17
38
CSOD-Onboard-10000 Solution: Onboarding Included in onboarding platform: Onboarding, Engine, Forms, Curriculum
Player Annual Cost Company Size 10,000 - 24,999
$90,680.10 $90,045.56
39
CSOD-Onboard-25000 Solution: Onboarding Included in onboarding platform: Onboarding, Engine, Forms, Curriculum
Player Annual Cost Company Size 25,000 - 49,999
$136,020.15 $135,068.34
40
CSOD-Onboard-50000 Solution: Onboarding Included in onboarding platform: Onboarding, Engine, Forms, Curriculum
Player Annual Cost Company Size 50,000 - 74,999
$158,690.18 $157,579.73
41
CSOD-Onboard-75000 Solution: Onboarding Included in onboarding platform: Onboarding, Engine, Forms, Curriculum
Player Annual Cost Company Size 75,000 - 149,999
$181,360.20 $180,091.11
42
CSOD-Onboard-150000 Solution: Onboarding Included in onboarding platform: Onboarding, Engine, Forms, Curriculum
Player Annual Cost Company Size 150,000+
$226,700.25 $225,113.90
43
CSOD-Ext-Base Solution: Extended Enterprise (Learning) [not for Connect] Included in extended enterprise
platform:
$27,204.03
44
* Portal + Self-registration + Portal Builder + Guest User Access + E-commerce, Ext.Ent. E-
Learning Engine, Compliance: Certifications + Forms, Curriculum Player, ILT, LCMS (1 seat) Per
Active User / Year flat annual fee
$27,013.67
45
CSOD-Ext-Cont Solution: Extended Enterprise (Learning) [not for Connect] Add-Ons Content delivery: Price per
Month/Per 10,000 Users
$906.80 $865.82
46 CSOD-Ext-Ent-Reg-1000 Blocks of Extended Enterprise Registrations 1000 Price per registration $9.07 $9.01
47 CSOD-Ext-Ent-Reg-5000 Blocks of Extended Enterprise Registrations 5000 Price per registration $4.53 $4.50
48 CSOD-Ext-Ent-Reg-10000 Blocks of Extended Enterprise Registrations 10000 Price per registration $3.63 $3.60
49 CSOD-Ext-Ent-Reg-50000 Blocks of Extended Enterprise Registrations 50000 Price per registration $2.72 $2.70
50 CSOD-Ext-Ent-Reg-100000 Blocks of Extended Enterprise Registrations 100000 Price per registration $2.27 $2.25
51 CSOD-Ext-Ent-Reg-250000 Blocks of Extended Enterprise Registrations 250000 Price per registration $1.81 $1.80
52 CSOD-Ext-Ent-Reg-500000 Blocks of Extended Enterprise Registrations 500000 Price per registration $1.36 $1.35
53 CSOD-Ext-Ent-Reg-1000000 Blocks of Extended Enterprise Registrations 1000000 Price per registration $0.91 $0.90
54 CSOD-Ext-Ent-Reg-1000-B Blocks of Extended Enterprise Registrations 1000 Registration Block (good for 12 months) $9,068.01 $9,004.56
55 CSOD-Ext-Ent-Reg-1000-B Blocks of Extended Enterprise Registrations 5000 Registration Block (good for 12 months) $22,670.03 $22,511.40
56 CSOD-Ext-Ent-Reg-1000-B Blocks of Extended Enterprise Registrations 10000 Registration Block (good for 12 months) $36,272.04 $36,018.23
57 CSOD-Ext-Ent-Reg-1000-B Blocks of Extended Enterprise Registrations 50000 Registration Block (good for 12 months) $136,020.15 $135,068.34
58 CSOD-Ext-Ent-Reg-1000-B Blocks of Extended Enterprise Registrations 100000 Registration Block (good for 12 months) $226,700.25 $225,113.90
59 CSOD-Ext-Ent-Reg-1000-B Blocks of Extended Enterprise Registrations 250000 Registration Block (good for 12 months) $453,400.50 $450,227.78
60 CSOD-Ext-Ent-Reg-1000-B Blocks of Extended Enterprise Registrations 500000 Registration Block (good for 12 months) $680,100.76 $675,341.68
61
CSOD-Ext-Ent-Reg-1000-B Blocks of Extended Enterprise Registrations 1000000 Registration Block (good for 12 months) $906,801.01 $900,455.58
62 CSOD-Conect-Ext Cornerstone Connect for the Extended Enterprise flat fee, annual, recurring; plus 22,670.03 $22,511.40
63
CSOD-Conect-Ext-Aut Cornerstone Connect for the Extended Enterprise An author is an non-employee who contributes to
a blog, posting board, wiki, podcast, etc. Active users can read contributions in Connect without
incurring this charge. Price per author / year
$2.27 $2.25
A B C D
64
Imp-Ent-TMS Discovery and Planning Phase includes sales hand-off process, client welcome process, client
activation process and onsite kick off meeting. Design Phase includes customized system
configuration and configuration workshop, delivered onsite. Execution Phase includes remote portal
configuration and onsite testing and validation. Pilot Phase includes onsite portal assessment.
Training Phase includes onsite administrator training course. Deployment Phase includes onsite
system review and system go live. Estimated timeline is 40-60 business days and includes project
management, 8-dayTMS training course and portal activation.
$85,188.92 $84,592.80
65
CSOD-InboundDF 1 Feed, 1 System, per CSOD Specification. Examples: End User/Organizational Unit, CRM, etc.
Annual Fee
$13,602.02 $13,506.82
66
CSOD-Outbound DF 1 Feed, 1 System, per CSOD Specification. Examples: Compensation System, Transcript,
Performance, CRM, etc. Annual Fee
$13,602.02 $13,506.82
67 SSOInt Single Sign on - Per CSOD Specification $9,571.79 $9,504.81
CSOD-WebcastInt VILT Per CSOD Specification. Examples: WebEx, LiveMeeting, Interwise $19,143.58 $19,009.62 68
69 CSOD-Content CCA
Modern content, carefully curated from the world’s leading learning providers accessible via
Cornerstone LMS. Per user $40.00 $39.72
70 CSOD - Tech Subscription Technology Package – Per User $115.00 $103.50
71 CSOD-Content-Ala Cart Content ala-cart Provider – User $60.00 $54.00
72
Premium support (Platform Included with any platform: Administration, MyTeam, Standard reports, 20% of annual GSA 15% of annual GSA
Prem-Sup E-mail notifications, User Profiles Add-On) software fees software fees
73
74
Saba-Cloud Engage Learning, Performance, Collaboration, Basic Organizational Charting features.
Saba Meeting/Classroom/Webinar for up to 500 concurrent users
$38.00 $37.73
75 Saba-Succession Saba Succession $10.00 $9.93
76 Saba- Pulse 360 – Add-on Saba Pulse 360 – Add-on $10.00 $9.93
77
Saba-Video for 2001 to 6000
users for 100 videos max
Saba Video for 2001 to 6000
users for 100 videos max
$1.25 $1.24
78
Saba-Video for 2001 to 6000
users for 500 videos max
Saba Video for 2001 to 6000
users for 500 videos max
$2.00 $1.99
79
Saba-Video for 2001 to 6000
users for 5000 videos max
Saba Video for 2001 to 6000
users for 5000 videos max
$5.00 $4.97
80 Saba/CSOD-LinkedIn Learning Connector (1001 – 50,000) LinkedIn Learning Connector (1001 – 50,000) $10,000.00 $9,930.02
81 Saba-Analytics, Add-On Subscription -- Pack of 500 Reports vILT Per CSOD Specification. Examples: WebEx, LiveMeeting, Interwise $10,000.00 $9,930.02
82 Saba Advanced Testing and Assessemt Saba Advanced Testing and Assessemt $5.00 $4.97
83 Saba WebEx connector (2,501 - 25,000 users) WebEx connector (2,501 - 25,000 users) $10,000.00 $9,930.02
84 CSOD-Edcast-Ess (0-1000 users) EdCast Essentials - Band 1 - User $30.00 $27.60
85 CSOD-Edcast-Ess (1001-2500 users) EdCast Essentials - Band 2 - User $22.50 $20.70
86 CSOD-Edcast-Ess (2,500-5000 users) EdCast Essentials - Band 3 - User $17.50 $16.10
87 CSOD-EdCast Manager Bundle (Band 1) Add on to EdCast Essential Band 1 - User $8.00 $7.36
88 CSOD-EdCast Manager Bundle (Band 2) Add on to EdCast Essential Band 2 - User $5.15 $4.74
89 CSOD-EdCast Manager Bundle (Band 3) Add on to EdCast Essential Band 3 - User $4.25 $3.91
90 CSOD-EdCast Skills Bundle (Band 1) Add on to EdCast Essential Band 1 - User $13.00 $11.96
91 CSOD-EdCast Skills Bundle (Band 2) Add on to EdCast Essential Band 2 - User $7.60 $6.99
92 CSOD-EdCast Skills Bundle (Band 3) Add on to EdCast Essential Band 3 - User $5.56 $5.12
93 CSOD-EdCast Analytics Bundle (Band 1) Add on to Edcast Essential Band 1 $11.50 $10.58
94 CSOD-EdCast Analytics Bundle (Band 2) Add on to Edcast Essential Band 2 $5.80 $5.34
95 CSOD-EdCast Analytics Bundle (Band 3) Add on to Edcast Essential Band 3 $3.89 $3.58
96 EDCast In-App Widgets – MS Teams Integration add on to Edcast Essential $9,975.00 $9,177.00
A B C D
97 EDCast In-App Widgets – MSO-365 Integration add on to Edcast Essential $9,975.00 $9,177.00
98 EDCast In-App Widgets – Outlook Integration add on to Edcast Essential $9,975.00 $9,177.00
99 EDCast Cornerstone Connector Integration add on to Edcast Essential $9,500.00 $8,740.00
EXHIBIT B
City and Vendor Renewal Quote
5098 Foothills Blvd Ste 3-351 Roseville Ca 95747
P: 916-276-1127
Chris@sp-ega.com
SB/DVBE 1747904 | FEIN 46-1167005 | CA Seller's Permit 102-320361
Prepared for: City of Fresno Quotation # 101424-1
Attn: Dennis Jones Revision #
Created:
Expiration:
Prepared by:
1
14-Oct-2024
30-Dec-2024
Chris Shade
Project Description: Fresno Conerstone OnDemand Renewal
Term Dates 12/31/24-12/30/25
SLP Contract # 24-70-0176G Contract
Products
Line Part # Description QTY Price / ea Extended
1 Learning-Base Learning Platform Included in base platform: E-learning,
Evaluations, Test engine, ILT, Curriculum Player, Materials
5,000 $ 22.30 $ 111,500.00
Management Price per Active User / Year
2 Prem-Sup Premium support (Platform Included with any platform:
Administration, MyTeam, Standard reports, E-mail notifications,
1 $ 5,554.50 $ 5,554.50
User Profiles Add-On) All available under Choice Customer
Success
3 SSOInt Single Sign on - Per CSOD Specification 1 $ 2,880.00 $ 2,880.00
4 CSOD-InboundDF 1 Feed, 1 System, per CSOD Specification. Examples: End
User/Organizational Unit, CRM, etc. Annual Fee (Edge Import)
1 $ 2,880.00 $ 2,880.00
5 Learning-LCMS Learning Platform Add-On LCMS: Content Authoring & Course
Publisher Price per seat / year
2 Included included
6 Zoom Connector (2501 – 25,000) Zoom Connector (2501 – 25,000) 1 included included
7 CCA subscription CCA subscription package 5,000 $ 15.89 $ 79,450.00
8 CSOD-WebcastInt MS Teams connector (2,501 - 25,000 users) 1 $ 5,450.00 $ 5,450.00
Total $207,714.50
Special Instructions: Pricing based off of 2024 SLP pricing
EXHIBIT C
Insurance and
Indemnity
INDEMNIFICATION
To the furthest extent allowed by law, VENDOR shall indemnify, hold harmless and
defend CITY and each of its officers, officials, employees, agents and volunteers from
any and all loss, liability, fines, penalties, forfeitures, costs and damages (whether in
contract, tort or strict liability, including but not limited to personal injury, death at any
time and property damage) incurred by CITY, VENDOR or any other person, and from
any and all claims, demands and actions in law or equity (including reasonable
attorney's fees, litigation expenses and cost to enforce this agreement), arising or
alleged to have arisen directly or indirectly out of performance of this Contract.
VENDOR'S obligations under the preceding sentence shall apply regardless of whether
CITY or any of its officers, officials, employees, agents or volunteers are passively
negligent, but shall not apply to any loss, liability, fines, penalties, forfeitures, costs or
damages caused by the active or sole negligence, or the willful misconduct, of CITY or
any of its officers, officials, employees, agents or volunteers.
If VENDOR should subcontract all or any portion of the work to be performed
under this Contract, VENDOR shall require each subcontractor to indemnify, hold
harmless and defend CITY and each of its officers, officials, employees, agents and
volunteers in accordance with the terms of the preceding paragraph.
This section shall survive termination or expiration of this Contract.
INSURANCE REQUIREMENTS
(a) Throughout the life of this Agreement, VENDOR shall pay for and maintain in full force and
effect all insurance as required herein with an insurance company(ies) either (i) admitted by the
California Insurance Commissioner to do business in the State of California and rated no less
than “A-VII” in the Best’s Insurance Rating Guide, or (ii) as may be authorized in writing by
CITY'S Risk Manager or his/her designee at any time and in his/her sole discretion. The required
policies of insurance as stated herein shall maintain limits of liability of not less than those
amounts stated therein. However, the insurance limits available to CITY, its officers, officials,
employees, agents and volunteers as additional insureds, shall be the greater of the minimum
limits specified therein or the full limit of any insurance proceeds to the named insured.
(b) If at any time during the life of the Agreement or any extension, VENDOR or any of its
subcontractors fail to maintain any required insurance in full force and effect, all services and
work under this Agreement shall be discontinued immediately, and all payments due or that
become due to VENDOR shall be withheld until notice is received by CITY that the required
insurance has been restored to full force and effect and that the premiums therefore have been
paid for a period satisfactory to CITY. Any failure to maintain the required insurance shall be
sufficient cause for CITY to terminate this Agreement. No action taken by CITY pursuant to this
section shall in any way relieve VENDOR of its responsibilities under this Agreement. The
phrase “fail to maintain any required insurance” shall include, without limitation, notification
received by CITY that an insurer has commenced proceedings, or has had proceedings
commenced against it, indicating that the insurer is insolvent.
(c) The fact that insurance is obtained by VENDOR shall not be deemed to release or
diminish the liability of VENDOR, including, without limitation, liability under the indemnity
provisions of this Agreement. The duty to indemnify CITY shall apply to all claims and liability
regardless of whether any insurance policies are applicable. The policy limits do not act as a
limitation upon the amount of indemnification to be provided by VENDOR. Approval or purchase
of any insurance contracts or policies shall in no way relieve from liability nor limit the liability of
VENDOR, vendors, suppliers, invitees, contractors, sub-contractors, subcontractors, or anyone
employed directly or indirectly by any of them.
Coverage shall be at least as broad as:
1. The most current version of Insurance Services Office (ISO) Commercial General Liability
Coverage Form CG 00 01, providing liability coverage arising out of your business operations.
The Commercial General Liability policy shall be written on an occurrence form and shall provide
coverage for “bodily injury,” “property damage” and “personal and advertising injury” with
coverage for premises and operations (including the use of owned and non -owned equipment),
products and completed operations, and contractual liability (including, without limitation,
indemnity obligations under the Agreement) with limits of liability not less than those set forth
under “Minimum Limits of Insurance.”
2. The most current version of ISO *Commercial Auto Coverage Form CA 00 01, providing
liability coverage arising out of the ownership, maintenance or use of automobiles in the course
of your business operations. The Automobile Policy shall be written on a n occurrence form and
shall provide coverage for all owned, hired, and non-owned automobiles or other licensed
vehicles (Code 1- Any Auto).
3. Workers’ Compensation insurance as required by the State of California and Employer’s
Liability Insurance.
4. Cyber Liability (Privacy and Data breach) insurance appropriate to VENDOR’S profession.
Coverage shall be sufficiently broad to respond to duties and obligations as is undertaken by
VENDOR in this agreement and shall include but not be limited to, claims involving infringement
of intellectual property, including but not limited to infringement of copyright, trademark, trade
dress, invasion of privacy violations, information theft, damage to or destruction of electronic
information, release of private information, alteration of electronic information, extortion and
network security. The policy shall provide coverage for breach response costs as well as
regulatory fines penalties and credit monitoring expenses with limits sufficient to respond to these
obligations.
MINIMUM LIMITS OF INSURANCE
VENDOR, or any party the VENDOR subcontracts with, shall maintain limits of liability of not less
than those set forth below. However, insurance limits available to CITY, its officers, officials,
employees, agents and volunteers as additional insureds, shall be the greater of the minim um
limits specified herein or the full limit of any insurance proceeds available to the named insured:
1. COMMERCIAL GENERAL LIABILITY:
(i) $1,000,000 per occurrence for bodily injury and property damage;
(ii) $1,000,000 per occurrence for personal and advertising injury;
(iii) $2,000,000 aggregate for products and completed operations; and,
(iv) $2,000,000 general aggregate applying separately to the work performed under the
Agreement.
2. COMMERCIAL AUTOMOBILE LIABILITY:
$1,000,000 per accident for bodily injury and property damage.
3. WORKERS’ COMPENSATION INSURANCE as required by the State of California with
statutory limits.
4. EMPLOYER’S LIABILITY:
(i) $1,000,000 each accident for bodily injury;
(ii) $1,000,000 disease each employee; and,
(iii) $1,000,000 disease policy limit.
5. CYBER LIABILITY insurance with limits of not less than:
(i) $1,000,000 per claim/occurrence; and,
(ii) $2,000,000 policy aggregate
UMBRELLA OR EXCESS INSURANCE
In the event VENDOR purchases an Umbrella or Excess insurance policy(ies) to meet the
“Minimum Limits of Insurance,” this insurance policy(ies) shall “follow form” and afford no less
coverage than the primary insurance policy(ies). In addition, such Umbrella or Excess insurance
policy(ies) shall also apply on a primary and non -contributory basis for the benefit of the CITY, its
officers, officials, employees, agents and volunteers.
DEDUCTIBLES AND SELF-INSURED RETENTIONS
VENDOR shall be responsible for payment of any deductibles contained in any insurance
policy(ies) required herein and VENDOR shall also be responsible for payment of any self-
insured retentions.
OTHER INSURANCE PROVISIONS/ENDORSEMENTS
The General Liability and Automobile Liability insurance policies are to contain, or be endorsed to
contain, the following provisions:
1. CITY, its officers, officials, employees, agents and volunteers are to be covered as
additional insureds. Additional Insured status under the General Liability policy shall be broad as
that contained in ISO Form CG 20 10 04 13 or CG 20 26 04 13.
2. The coverage shall contain no special limitations on the scope of protection afforded to
CITY, its officers, officials, employees, agents and volunteers. Any available insurance proceeds
in excess of the specified minimum limits and coverage shall be a vailable to the Additional
Insured.
3. For any claims relating to this Agreement, VENDOR’S insurance coverage shall be
primary insurance with respect to the CITY, its officers, officials, employees, agents and
volunteers. Any insurance or self-insurance maintained by the CITY, its officers, officials,
employees, agents and volunteers shall be in excess of VENDOR’S insurance and shall not
contribute with it. VENDOR shall establish primary and non-contributory status under the
General Liability policy by use of ISO Form CG 20 01 04 13 or by an executed manuscript
insurance company endorsement that provides primary and non contributory status as broad as
that contained in ISO Form CG 20 01 04 13.
All policies of insurance shall contain, or be endorsed to contain, the following provision:
VENDOR and its insurer shall waive any right of subrogation against CITY, its officers, officials,
employees, agents and volunteers.
All policies of insurance required herein shall be endorsed to provide that the coverage shall not
be cancelled, non-renewed, reduced in coverage or in limits except after thirty (30) calendar days
written notice by certified mail, return receipt requested, has been given to CITY. VENDOR is
also responsible for providing written notice to the CITY under the same terms and conditions.
Upon issuance by the insurer, broker, or agent of a notice of cancellation, non -renewal, or
reduction in coverage or in limits, VENDOR shall furnish CITY with a new certificate and
applicable endorsements for such policy(ies). In the event any policy is due to expire during the
work to be performed for CITY, VENDOR shall provide a new certificate, and applicable
endorsements, evidencing renewal of such policy not less than fifteen (15) calendar days prior to
the expiration date of the expiring policy.
The Cyber Liability insurance shall cover claims involving privacy violations, information theft,
damage to or destruction of electronic information, intentional and/or unintentional release of
private information (including credit monitoring costs), alteration of electronic information,
extortion and network security. Such coverage is required for claims involving any professional
services for which VENDOR is engaged with the City for such length of time as necessary to
cover any and all claims
If the Cyber Liability insurance policy is written on a claims-made form:
1. The retroactive date must be shown, and must be before the effective date of the
Agreement or the commencement of work by VENDOR.
2. Insurance must be maintained and evidence of insurance must be provided for at least five
(5) years after completion of the Agreement work or termination of the Agreement, whichever
occurs first, or, in the alternative, the policy shall be endorsed to provide not less than a five (5)
year discovery period.
3. If coverage is canceled or non-renewed, and not replaced with another claims-made policy
form with a retroactive date prior to the effective date of the Agreement or the commencement of
work by VENDOR, VENDOR must purchase “extended reporting” coverage for a minimum of five
(5) years completion of the Agreement work or termination of the Agreement, whichever occurs
first.
4. A copy of the claims reporting requirements must be submitted to CITY for review.
5. These requirements shall survive expiration or termination of the Agreement.
Should any of these policies provide that the defense costs are paid within the Limits of Liability,
thereby reducing the available limits by defense costs, then the requirement for the Limits of
Liability of these polices will be twice the above stated limits.
The fact that insurance is obtained by VENDOR shall not be deemed to release or diminish the
liability of VENDOR, including, without limitation, liability under the indemnity provisions of this
Agreement. The policy limits do not act as a limitation upon the amount of indemnification to be
provided by VENDOR. Approval or purchase of any insurance contracts or policies shall in no
way relieve from liability nor limit the liability of VENDOR, its principals, officers, agents,
employees, persons under the supervision of VENDOR, vendors, suppliers, invitees, consultants,
subcontractors, or anyone employed directly or indirectly by any of them.
VERIFICATION OF COVERAGE
VENDOR shall furnish CITY with all certificate(s) and applicable endorsements effecting
coverage required hereunder. All certificates and applicable endorsements are to be received
and approved by the CITY’S Risk Manager or his/her designee prior to CITY’S execution of the
Agreement and before work commences. All non-ISO endorsements amending policy coverage
shall be executed by a licensed and authorized agent or broker. Upon request of CITY,
VENDOR shall immediately furnish City with a complete copy of any insurance policy required
under this Agreement, including all endorsements, with said copy certified by the underwriter to
be a true and correct copy of the original policy. This requirement shall survive expiration or
termination of this Agreement.
SUBCONTRACTORS
If VENDOR subcontracts any or all of the services to be performed under this Agreement,
VENDOR shall require, at the discretion of the CITY Risk Manager or designee, subcontractor(s)
to enter into a separate Side Agreement with the City to provide required indemnification and
insurance protection. Any required Side Agreement(s) and associated insu rance documents for
the subcontractor must be reviewed and preapproved by CITY Risk Manager or designee. If no
Side Agreement is required, VENDOR will be solely responsible for ensuring that its
subcontractors maintain insurance coverage at levels no less than those required by applicable
law and is customary in the relevant industry.
City of Fresno
Staff Report
2600 Fresno Street
Fresno, CA 93721
www.fresno.gov
File #:ID 25-98 Agenda Date:1/30/2025 Agenda #:2.-J.
REPORT TO THE CITY COUNCIL
FROM:BRYON HORN, Director,
Information Services Department
BY:FRANK D. VAWTER, Assistant Director
Information Services Department
SUBJECT
Approve a Cooperative Purchase agreement with KIS for server virtualization subscription licensing
and support for the City for three years, in the amount of $797,839.20, in accordance with purchasing
procedures from cooperative purchase agreements as set forth in Administrative Order 3-1; and
authorize the Chief Information Officer or designee to execute the agreement.
RECOMMENDATION
Staff recommends Council approve the award of a Cooperative Purchase agreement with KIS and
authorize the Chief Information Officer to enter into a three-year Agreement with KIS to renew the
City’s server virtualization subscription licensing and support for the City in the amount of
$797,839.20 in accordance with purchasing procedures from cooperative purchase agreements as
set forth in Administrative Order 3-1.
EXECUTIVE SUMMARY
The Information Services Department (ISD) has maintained licensing agreements, via KIS, to cover
the support and subscription licensing of server virtualization products. The total amount of the three-
year contract is $797,839.20, spread evenly over the three-year term at $265,946.40, annually. The
licensing shall be priced and purchased using a cooperative purchase agreement as set forth in
Administrative Order 3-1. ISD will use the California Multiple Award Schedules (CMAS) contract to
complete this purchase. The unit pricing will not change during the contract period, however, license
types and quantities are subject to change due to the requirements of the City.
This software product allows the city to maintain a virtual server environment and maximize the value
of the investment in server hardware. The increase in the cost of the licensing is due to changes in
the market for this type of software.
BACKGROUND
Historically ISD has used virtualization software to operate City data centers, this software provides
numerous cost, reliability, flexibility, and scalability options. A lack of renewal for product will place
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MA/AP 6-0
DISTRICT 5 (VACANT) ABSENT
APPROVED ON CONSENT
File #:ID 25-98 Agenda Date:1/30/2025 Agenda #:2.-J.
virtual server operations at risk. ISD manages these types of licenses city-wide and is leveraging the
city’s scale to secure improved contract terms.
ISD maintains subscription licensing for all server virtualization tools in the city.
ENVIRONMENTAL FINDINGS
By the definition provided in the California Environmental Quality Act Guidelines Section 15378, the
award of this contract does not qualify as a project
LOCAL PREFERENCE
Local preference was not implemented because a cooperative purchase agreement is being used
through another governmental entity.
FISCAL IMPACT
Funding for this expense is appropriated in the Fiscal Year 2025 Budget in the Information Services
Department’s (ISD) Systems Acquisition Maintenance Fund (54001). The cost for the first year of the
enterprise agreement is $265,946.40. ISD currently collects yearly appropriations to pay for the
remainder of the Agreement over the 3-year term. No additional fiscal impact is expected.
Attachment:
Cooperative Agreement
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FORMAL COOPERATIVE PURCHASE AGREEMENT
THIS AGREEMENT (Agreement) is made and entered into EFFECTIVE
____________________________. by and between CITY OF FRESNO, a California
municipal corporation (City), and KIS COMPUTER CENTER, a California Corporation
(Vendor).
AGREEMENT
NOW, THEREFORE, in consideration of the foregoing and of the covenants,
conditions, and promises hereinafter contained to be kept and performed by the
respective parties, it is mutually agreed as follows:
1. The Charter for the City allows for cooperative purchase agreements for materials,
supplies and equipment. The City is allowed to piggyback an existing government
agency’s agreement, under Fresno City Charter 1208. The Parties agree that the
Vendor has entered a Cooperative Purchase Contract with California Department
of General Services (CMAS #3-18-70-2443Q) (Original Government Contract).
2. Vendor’s Obligation. Vendor shall provide those services and carry out that work
described in the Original Government Contract, which is attached hereto as
Exhibit A and is incorporated herein by reference, subject to all the terms and
conditions contained or incorporated herein.
3. City’s Obligation. City shall make to the Vendor those payments described in
Exhibits A and Exhibit C,subject to all the terms and conditions contained or
incorporated herein
4. Notwithstanding the requirements that the Original Government Contract is fully
binding on the Parties, the parties have agreed to modify certain non-material
provisions of the Original Government Contract as applied to this Agreement
between the Vendor and the City, as follows:
a) City’s Insurance and Indemnity provisions attached as Exhibit B.
b) Address change for the City: Notwithstanding the address and
contract information for the government entity as set out in Exhibit A, the Vendor agrees
that notices and invoices will be sent to:
City of Fresno
Attention: Stephanie Ciehoski
2600 Fresno Street, Room 1059
Fresno, CA 93721
Phone: (559) 621-7180
E-mail: Stephanie.Ciehoski@fresno.gov
c) Notwithstanding anything in Exhibits A and B to the contrary, this
Agreement shall be governed by, and construed and enforced in accordance with, the
laws of the State of California, excluding however, any conflict of laws rule which would
GSD-S Formal Cooperative Purchase Agt.(10-2023)
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402761v1
apply the law of another jurisdiction. Venue for purposes of the filing of any action
regarding the enforcement or interpretation of this Agreement and any rights and duties
hereunder shall be Fresno County, California.
d) All other provisions in the Original Government Contract are fully
binding on the parties and will represent the agreement between the City and the Vendor.
[Signatures follow on the next page.]
GSD-S Formal Cooperative Purchase Agt.(10-2023)
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402761v1
IN WITNESS WHEREOF, the parties have executed this Agreement at Fresno,
California, the day and year first above written.
CITY OF FRESNO,
a California municipal corporation
By:
Melissa Perales
Purchasing Manager
General Services Department
Date
Date
APPROVED AS TO FORM:
ANDREW JANZ
City Attorney
By:
Christine C. Charitar
Deputy City Attorney
ATTEST:
TODD STERMER, CMC
City Clerk
By:
Deputy
Addresses:
CITY
City of Fresno
Attention: Armen Megerdichian
2600 Fresno Street, Room 1059
Fresno, CA 93721
Phone: (559) 621-7128
E-mail: Armen.Megerdichian
KIS COMPUTER CENTER, a California
Corporation
By:
Name:
Title:
(If corporation or LLC., Board Chair,
Pres. or Vice Pres.)
By:
Name:
Title:
(If corporation or LLC., CFO, Treasurer,
Secretary or Assistant Secretary)
Vendor:
KIS Computer Center
Attention: Matt Eickmann
43160 Osgood Road
Fremont, CA 94539
Phone: (510) 403-7561
E-mail: matt@kiscc.com
Attachments:
Exhibit A - Original Government Contract
Exhibit B - City’s Insurance and Indemnity
Exhibit C – City and Vendor Renewal Quote
EXHIBIT A
2ULJLQDO*RYHUQPHQW&RQWUDFW
Procurement Division
This California Multiple Award Schedule (CMAS) provides for the purchase,
warranty, and installation of hardware, hardware maintenance and repair
services, software, software maintenance as a product, electronic commerce
and subscription services, Infrastructure as a Service (IaaS), Platform as a
Service (PaaS), Software as a Service (SaaS) and other cloud computing
services. (See page 3 for the restrictions applicable to this CMAS.)
707 Third Street, 2nd Floor, MS #2-202
West Sacramento, CA 95605-2811
State of California
MULTIPLE AWARD SCHEDULE
Sable Computer Inc. doing business as
KIS Computer Center
CMAS NUMBER: 3-18-70-2443Q
SUPPLEMENT NUMBER: 2
CMAS TERM DATES: 02/09/2018 through 06/26/2027
CMAS CATEGORY: Information Technology Goods and Services
APPLICABLE
TERMS & CONDITIONS: January 20, 2022
MAXIMUM ORDER LIMIT:
State Agencies: See Purchasing Authority
Dollar Threshold provision
Local Government Agencies: Unlimited
FOR USE BY: State & Local Government Agencies
BASE SCHEDULE #: GS-35F-0511T
BASE SCHEDULE HOLDER: EC America, Inc.
This supplement is to extend this CMAS through 06/26/2027. In addition, this supplement replaces
in its entirety the existing CMAS. The most current Ordering Instructions and Special Provisions,
CMAS Terms and Conditions, and products and/or services are included herein. All purchase
orders issued by State agencies shall incorporate these Ordering Instructions and Special
Provisions, and CMAS Terms and Conditions. Review these provisions carefully as they have
changed.
Original Signature on File Effective Date: 06/29/2022
Katelynne Leisenring, Program Analyst, California Multiple Award Schedules Unit
CALIFORNIA MULTIPLE AWARD SCHEDULE (CMAS)
KIS COMPUTER CENTER
CMAS NO 3-18-70-2443Q, SUPPLEMENT NO. 2
November 03, 2021 Ordering Instructions and Special Provisions 2
NOTICE: Products and/or services on this CMAS may be available on a Mandatory Statewide
Contracts. If this is the case, the use of this CMAS is restricted unless the State agency has an
approved exemption as explained in the Statewide Contract User Instructions. Information
regarding Statewide Contracts can be obtained at the: Statewide Contract Index Listing
(www.dgs.ca.gov/PD/About/Page-Content/PD-Branch-Intro-Accordion-List/Acquisitions/Statewide-
Contracts). This requirement is not applicable to local government agencies.
Any reference to a specific manufacturer’s or publisher’s warranty or terms and conditions as
shown in the base schedule are not applicable to this CMAS.
Buyers must verify that the CMAS vendor has a letter of authorization from the manufacturer or an
authorized distributor for the sale of the products covered by this CMAS. Service specific letters of
authorization from the manufacturer are required if the CMAS vendor is providing installation,
maintenance, and repair services.
The services provided under this CMAS are only available in support of the products covered by
this CMAS.
Agency non-compliance with the requirements may result in the loss of delegated authority to use
the CMAS program.
CMAS contractor non-compliance with the requirements may result in termination.
CALIFORNIA MULTIPLE AWARD SCHEDULE (CMAS)
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CMAS PRODUCT & SERVICE CODES
Product & Service Codes listed below are for marketing purposes only. Review the base schedule
for the products and/or services available.
Brand-Barracuda
Brand-Palo Alto Networks
Security-Email
Security-IT Hardware
Security-IT Network
Software
Software-Application
Software-Internet Security
Software-License Agreement
Software-Maintenance
Software-Virus Detection
AVAILABLE PRODUCTS AND/OR SERVICES
All of the products in the base schedule are available within the scope of this CMAS.
The ordering agency must verify all products and/or services are currently available on the base
General Services Administration (GSA) schedule. Access the GSA eLibrary at
www.gsaelibrary.gsa.gov.
EXCLUDED PRODUCTS AND/OR SERVICES
Software maintenance as a service, continuous diagnostics and mitigation tools, Information
Technology (IT) consulting services, training courses, and order-level materials are not available
under this CMAS.
ISSUE PURCHASE ORDER TO
Agency purchase orders must be sent to the following:
KIS Computer Center
48383 Fremont Blvd., Suite 122
Fremont, CA 94538
Attn: Sue Canevaro
E-mail: sue@kiscc.com
Agencies with questions regarding products and/or services may contact the CMAS contractor as
follows:
Contact: Sue Canevaro
Phone: (510) 403-7557
E-mail: sue@kiscc.com
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TOP 500 DELINQUENT TAXPAYERS
In accordance with Public Contract Code (PCC) 10295.4, and prior to placing an order for IT
goods and/or services, agencies must verify with the Franchise Tax Board and the California
Department of Tax and Fee Administration that this CMAS contractor’s name does not appear on
either list of the 500 largest tax delinquencies pursuant to Revenue and Taxation Code 7063 or
19195. See next paragraph for information.
The Franchise Tax Board’s list of Top 500 Delinquent Taxpayers is available at
www.ftb.ca.gov/about-ftb/newsroom/top-500-past-due-balances/index.html.
The California Department of Tax and Fee Administration’s list of Top 500 Sales & Use Tax
Delinquencies in California is available at www.cdtfa.ca.gov/taxes-and-fees/top500.htm.
CALIFORNIA SELLER’S PERMIT
The CMAS contractor’s California Seller’s Permit Number is 026800992. Prior to placing an order
with this company, agencies must verify that this permit is still valid at the California Department of
Tax and Fee Administration website (cdtfa.ca.gov).
MINIMUM ORDER LIMITATION
There is no minimum dollar value limitation on orders placed under this CMAS.
CMAS PRICES
The maximum prices allowed for the products and/or services available are those set forth in the
base schedule.
The ordering agency is encouraged to seek prices lower than those in the base schedule. When
responding to an agency’s Request for Offer (RFO), the CMAS contractor can offer lower prices to
be competitive.
ACQUISITION OF IAAS AND/OR PAAS
If using this CMAS for the purpose of acquiring Infrastructure as a Service (IaaS) and/or Platform
as a Service (PaaS), State agencies must first obtain approval to use this CMAS from the
California Department of Technology (CDT) in accordance with TL 17-06 (www.cdt.ca.gov/wp-
content/uploads/2017/08/TL-17-06.pdf). State agencies must document CDT’s approval and
maintain in the procurement file. Contact CDT for all questions related to the acquisition of IaaS
and PaaS and TL 17-06.
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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.
CALIFORNIA CIVIL RIGHTS LAW CERTIFICATION
Pursuant to PCC 2010, effective January 1, 2017, applicants must certify their compliance with the
California Civil Rights laws and Employer Discriminatory Policies (Civil Code 51, GC 12960). It is
the agency’s responsibility to verify that the contractor has a California Civil Rights Law
Certification on file.
WARRANTY
For warranties, see the base schedule, the CMAS Terms and Conditions, General Provisions, and
CMAS Warranty.
DELIVERY
30 days after receipt of order or as negotiated between agency and CMAS contractor and included
in the purchase order.
SHIPPING INSTRUCTIONS
F.O.B. (Free On Board) Destination. Seller pays the freight charges.
PURCHASING AUTHORITY DOLLAR THRESHOLD
Order limits for the purchase of goods and/or services is determined by the individual agency
purchasing authority threshold.
No CMAS order may be executed by a State agency that exceeds that agency’s purchasing
authority threshold. State agencies with approved purchasing authority, along with their dollar
thresholds can be obtained at the List of State Departments with Approved Purchasing Authority
website (www.dgs.ca.gov/PD/Resources/Page-Content/Procurement-Division-Resources-List-
Folder/List-of-State-Departments-with-Approved-Purchasing-Authority).
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HOW TO USE CMAS
Agencies must adhere to the detailed requirements in the State Contracting Manual (SCM) when
using CMAS. The requirements for the following bullets are in SCM, Volume 2, Chapter 6 (for non-
IT), SCM, Volume 3, Chapter 6 (for IT), and SCM, Volume FISCal, Chapter 5 (FISCal):
x Develop an RFO, which includes a Scope of Work (SOW) and Bidder Declaration form. For
information on the Bidder Declaration requirements, see SCM, Volume 2, Chapter 3, 3.5.7
and Volume 3, Chapter 3, 3.4.7.
x Search for potential CMAS contractors on the CMAS website
(www.dgs.ca.gov/PD/About/Page-Content/PD-Branch-Intro-Accordion-
List/Acquisitions/California-Multiple-Award-Schedules) and select “Find a CMAS
Contractor.”
x Request offers from a minimum of 3 CMAS contractors including one small business (SB)
and/or Disabled Veteran Business Enterprise (DVBE), if available, who are authorized to
sell the products and/or services needed.
x If requesting offers from a certified DVBE, include the Disabled Veteran Business Enterprise
Declarations form (Standard 843) in the RFO. This declaration must be completed and
returned by the DVBE prime contractor and/or any DVBE subcontractors. (See SCM
Volumes 2, 3, and FISCal, Chapter 3).
x This is not a bid transaction, so the small business preference, DVBE incentives, protest
language, intent to award, evaluation criteria, advertising, etc., are not applicable.
x If less than 3 offers are received, State agencies must document their file with the reasons
why the other suppliers did not respond with an offer.
x Assess the offers received using best value methodology, with cost as one of the criteria.
x Issue a Purchase Order to the selected CMAS contractor.
x For CMAS transactions under $10,000, only one offer is required if the State agency can
establish and document that the price is fair and reasonable. The fair and reasonable
method can only be used for non-customizable purchases.
SPLITTING ORDERS
Splitting orders to avoid any monetary limitations is prohibited.
Do not circumvent normal procurement methods by splitting purchases into a series of delegated
purchase orders, per PCC 10329.
Splitting a project into small projects to avoid either fiscal or procedural controls is prohibited, per
State Administrative Manual (SAM) 4819.34.
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ORDERING PROCEDURES
1. Purchase Orders
All Ordering Agency purchase order documents executed under this CMAS must contain the
applicable CMAS number as show on page 1.
a. State Departments:
Standard 65 Purchase Documents – State departments not transacting in FISCal must use
the Purchasing Authority Purchase Order (Standard 65) for purchase execution. An
electronic version of the Standard 65 is available at the Department of General Services
(DGS), Procurement Division (PD) website
(www.dgsapps.dgs.ca.gov/osp/StatewideFormsWeb/Forms.aspx), select Standard (STD)
Forms.
FISCAL Purchase Documents – State departments transacting in FISCal will follow the
FISCal procurement and contracting procedures.
b. Local Government Agencies:
Local government agencies may use their own purchase order document for purchase
execution.
The agency is required to complete and distribute the purchase order. For services, the agency
shall modify the information contained on the order to include the service period (start and end
date), and the monthly cost (or other intermittent cost), and any other information pertinent to
the services. The cost for each line item must be included in the order, not just system totals.
The contractor must immediately reject purchase orders that are not accurate. Discrepancies
are to be negotiated and incorporated into the purchase order prior to product delivery and
service implementation.
2. Service and Delivery after CMAS Expiration
The purchase order must be issued before the CMAS expires. However, delivery of the
products or completion of the services may be after the CMAS expires (unless otherwise
specifically stated in the purchase order). Amending the purchase order to add quantity, time,
or money is not possible if the CMAS expired.
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3. Multiple CMAS Agreements on a Single Purchase Order
Agencies wishing to include multiple CMAS agreements on a single FISCal purchase order
must adhere to the following guidelines:
x All CMAS must be for the same CMAS contractor.
x The purchase order must go to one contractor location.
x Enter the word “CMAS” in the space reserved for the Leveraged Procurement Agreement
(LPA) number. The word “CMAS” signifies that the purchase order contains items from
multiple CMAS agreements. The purchasing agency may only use one bill code.
x For each individual CMAS, the agency must identify and group together the CMAS number
with the line items and subtotal per CMAS number (do not include tax in the subtotal), and
sequentially identify each individual CMAS as Sub #1, Sub #2, Sub #3, etc. This facilitates
accurate billing of administrative fees by the Procurement Division.
x The total of all items on the purchase order must not exceed the purchase order limit
identified in the CMAS.
x Do not combine items from IT and non-IT CMAS agreements. An Information Technology
CMAS begins with the number “3” and a non-IT CMAS begins with the number “4.” The
purchase order limits are different for these CMAS agreements.
4. Amendments to State Agency's Purchase Orders
Agency purchase orders cannot be amended if the CMAS has expired.
SCM, Volumes 2 & 3, Chapter 6, 6.A5.0 and SCM, Volume FISCal, Chapter 5, 5.A4.0 provides
the following direction regarding amendments to all types of LPA purchase orders:
Original orders, which include options for changes (e.g., quantity or time), that were
evaluated and considered in the selection for award during the RFO process, may be
amended consistent with the terms of the original order, provided that the original order
allowed for amendments. If the original order did not evaluate options, then amendments
are not allowed unless an NCB is approved for those amendments.
Amendments unique to non-IT services are covered in SCM, Volume 2, Chapter 6, 6.B2.9 and
SCM, Volume FISCal, Chapter 5, 5.A4.1 as follows:
If the original contract permitted amendments, but did not specify the changes (e.g., quantity
or time), it may be amended, per Public Contract Code (PCC) § 10335 (d)(1). Only a
contract may be amended once under this exemption. The time shall not exceed one year,
or add not more than 30% of the original order value and may not exceed $250,000. If the
original contract did not have language permitting amendments, the NCB process must be
followed.
CMAS CONTRACTOR OWNERSHIP INFORMATION
The CMAS contractor is a large business enterprise.
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SMALL BUSINESS MUST BE CONSIDERED
Prior to placing orders under the CMAS program, State agencies shall whenever practicable first
consider offers from small businesses that have established CMAS (GC 14846(b)). NOTE: DGS
auditors will request substantiation of compliance with this requirement when agency files are
reviewed.
CMAS Small Business and Disabled Veteran Partners lists (www.dgs.ca.gov/PD/About/Page-
Content/PD-Branch-Intro-Accordion-List/Acquisitions/California-Multiple-Award-Schedules) can be
found on the CMAS website by selecting “Find a CMAS Contractor”.
In response to our commitment to increase participation by small businesses, the Department of
General Services waives the administrative fee (a fee charged to customer agencies to support the
CMAS program) for orders to California certified small business enterprises.
SMALL BUSINESS/DVBE - TRACKING
State agencies are able to claim subcontracting dollars towards their SB or DVBE goals whenever
the CMAS contractor subcontracts a commercially useful function to a certified SB or DVBE. The
CMAS contractor will provide the ordering agency with the name of the SB or DVBE used and the
dollar amount the ordering agency can apply towards its SB or DVBE goal.
SMALL BUSINESS/DVBE - SUBCONTRACTING
1. The amount an ordering agency can claim towards achieving its SB or DVBE goals is the dollar
amount of the subcontract award made by the CMAS contractor to each SB or DVBE.
2. The CMAS contractor will provide an ordering agency with the following information at the time
the order is quoted:
a. The CMAS contractor will state that, as the prime contractor, it shall be responsible for the
overall execution of the fulfillment of the order.
b. The CMAS contractor will indicate to the ordering agency how the order meets the SB or
DVBE goal, as follows:
i. List the name of each company that is certified by the Office of Small Business and
DVBE Services that it intends to subcontract a commercially useful function to; and
ii. Include the SB or DVBE certification number of each company listed, and attach a copy
of each certification; and
iii. Indicate the dollar amount of each subcontract with a SB or DVBE that may be claimed
by the ordering agency towards the SB or DVBE goal; and
iv. Indicate what commercially useful function the SB or DVBE subcontractor will be
providing towards fulfillment of the order.
3. The ordering agency’s purchase order must be addressed to the prime contractor, and the
purchase order must reference the information provided by the prime contractor as outlined
above.
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WITHHOLD LANGUAGE (SB588)
Option 1 – Withhold Language
Upon delivery or completion of ordered goods or services for which the Contractor committed to
DVBE subcontractor participation, state departments must require the Contractor to certify all the
following:
1. The amount and percentage of work the Contractor committed to provide to one or more
DVBEs under the requirements of the contract and the amount each DVBE received from the
Contractor.
2. That all payments under the contract have been made to the DVBE. Upon request, the
Contractor must provide proof of payment for the work.
In accordance with the Military and Veterans Code 999.7, state departments shall withhold
$10,000 from the final payment, or the full final payment if less than $10,000, if the Contractor fails
to meet the certification requirements identified above. State departments shall notify the
Contractor of their failure to meet the certification requirements and give the Contractor an
opportunity to comply with the certification requirements. If after 30 calendar days from the date of
notice, the Contractor refuses to comply with the certification requirements, the state department
shall permanently deduct $10,000 from the final payment, or the full payment if less than $10,000.
Option 2 – No Withhold Language
During the contract term and upon completion of the contract for which a DVBE subcontractor
commitment was made, DGS-PD will require the Contractor to certify all participation commitments
and payments under the contract have been made to the DVBE. Upon request by DGS-PD, the
Contractor shall provide proof of payment for the work.
PRODUCT SUBSTITUTIONS
Substitution of Deliverables may not be tendered without advance written consent of the Buyer.
The Contractor must offer an equivalent or newer model of the product from the same
manufacturer at the same or lower price. Contractor cannot use any specification in lieu of those
contained in the Contract without written consent from the Buyer.
NEW EQUIPMENT REQUIRED
The State will procure new equipment. All equipment must be new (or warranted as newly
manufactured) and the latest model in current production. Used, shopworn, demonstrator,
prototype, or discontinued models are not acceptable.
Where Federal Energy Management Program (FEMP) standards are available, all State agencies
shall purchase only those products that meet the recommended standards. All products displaying
the Energy Star label meet the FEMP standards.
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SPECIAL MANUFACTURED GOODS
Any CMAS for goods to be manufactured by the CMAS contractor specifically for the State and not
suitable for sale to others may require progress payments.
TRADE-IN EQUIPMENT
Trade-ins at open market price may be considered. The product description and trade-in allowance
must be identified on the purchase order.
Agencies are required to adhere to SAM 3520 through 3520.6, Disposal of Personal Property and
Surplus Personal Property, as applicable, when trade-ins are considered. A Property Survey
Report, Standard 152, must be submitted for approval prior to disposition of any State-owned
personal property, including general office furniture regardless of the acquisition value, or if the
property was recorded or capitalized for accounting purposes.
STATE AGENCY BUY RECYCLED CAMPAIGN
State ordering agencies are required to report purchases made within the eleven product
categories in the California Department of Resources Recycling and Recovery’s State Agency Buy
Recycled Campaign per PCC 12200 through 12217.
Contractor will be required to complete and return a Recycled-Content Certification form
(www.calrecycle.ca.gov/contracts/forms) upon request by the state ordering agency.
ELECTRONIC WASTE RECYCLING
State agencies are required to recycle state owned surplus electronic equipment that has no useful
life remaining (E-Waste) to the maximum extent possible. State agencies shall dispose of E-Waste
using the services of the California Prison Industry Authority (CALPIA), unless the agency meets
the pickup quantity and location exemption criteria detailed in SAM 3520.10. Electronic equipment
that is usable and still retains value is not considered E-Waste and must be reutilized through
DGS, Office of Fleet and Asset Management (OFAM) Surplus Personal Property Warehouse.
State agencies shall determine which equipment meets the definition of E-Waste or reusable
Electronic Equipment, per the definitions provided in the SAM Management Memo (MM) 17-06.
OFAM will validate that equipment meets the appropriate definition when reviewing the submitted
Property Survey Report (Standard 152).
The electronic waste recycling fee must be shown as a line item on the agency purchase order
before the CMAS contractor can include it on their invoice.
See SAM 3520.10 for more information on this policy.
Information for submitting a Standard 152 can be found on the DGS OFAM surplus property
website (www.dgs.ca.gov/RESD/Resources/Page-Content/Real-Estate-Services-Division-
Resources-List-Folder/DGS-Surplus-Property-Homepage).
Information on the E-Waste - CALPIA Store and the E-Waste Exemption Request Form EWR-
F400 can be found at catalog.calpia.ca.gov/services/e-waste/#/.
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PRODUCT INSTALLATION
The CMAS contractor is fully responsible for all installation services performed under the CMAS.
Product installations must be performed by manufacturer authorized personnel and meet
manufacturer documented specifications.
The prime contractor, as well as any subcontractors, must hold any certifications and/or licenses
required for the project.
PUBLIC WORKS (INSTALLATION SERVICES ONLY)
A public works contract is defined as an agreement for “the erection, construction, alteration,
repair, or improvement of any public structure, building, road, or other public improvement of any
kind” in accordance with PCC 1101. State agencies planning these types of projects need to
review SCM, Volume 1, Chapters 10 and 11 for applicable guidelines and regulations. Visit the
DGS, Real Estate Services Division (RESD) website (www.dgs.ca.gov/RESD) if you have
questions about public works transactions.
Agency CMAS purchase orders may allow for public works installation only when it is incidental to
the total purchase order amount.
Agencies are to ensure that the applicable laws and codes pertaining to the contractor and sub-
contractor licensing, prevailing wage rates, bonding, labor code requirements, etc., are adhered to
by the prime contractor as well as any subcontractor during performance under the CMAS
purchase order.
The bond amount for public works is not less than 100% of the purchase order price.
NOTE: In accordance with Labor Code (LC) 1773.2, the ordering agency is responsible for
determining the appropriate craft, classification or type of worker needed for any contract for public
works. Also, the agency is to specify the applicable prevailing wage rates as determined by the
Director of the Department of Industrial Relations (DIR). In lieu of specifying the prevailing wage
rates, the agency may include a statement on the order that the prevailing wage rates are on file at
the agency’s office and will be made available upon request. The prevailing wage rates are
available from DIR at www.dir.ca.gov (select Statistics & Research).
Bonds: For guidelines, see CMAS, General Terms and Conditions, Public Works Requirements.
State Contractor’s License: Public works services can be obtained through CMAS only if
incidental to the overall purchase order. If incidental public works services are included in the
purchase order, prior to issuing the order agencies should contact the State Contractor’s License
Board (www.cslb.ca.gov) to verify that the Contractor’s License shown below is still active and in
good standing.
The CMAS contractor’s California Contractor's License number is 1072691. This is a Class C-7
Low Voltage Systems license that is valid through 01/31/2023.
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Cable and Wire: Cable and wire products that are purchased under this CMAS must be for
information technology projects only (computers, telecommunications, and security systems) and
cannot be used for general purpose installations.
Purchase orders for cable and wire installation services only are prohibited.
Cable and wire installations under this CMAS must be installed and tested to EIA/TIA Standards.
Agency questions regarding the purchase and/or installation of cable and wire for computers
and/or telecommunications may be directed to the California Department of Technology, Statewide
Telecommunications and Network Division.
PRODUCTIVE USE REQUIREMENTS
The customer in-use requirement applies to all procurements of information technology equipment
and software, per SCM, Volume 3, Chapter 2, 2.B6.2 and SCM, Volume FISCal, Chapter 2, 2.E3.2.
Each equipment or software component must be in current operation for a paying customer and
the paying customer must be external to the contractor’s organization (not owned by the contractor
and not owning the contractor).
To substantiate compliance with the Productive Use Requirements, the CMAS contractor must
provide upon request the name and address of a customer installation and the name and
telephone number of a contact person.
The elapsed time such equipment or software must have been in operation is based upon the
importance of the equipment or software for system operation and its cost. The following
designates product categories and the required period of time for equipment or software operation
prior to approval of the replacement item on CMAS.
Category 1 - Critical Software: Critical software is software that is required to control the overall
operation of a computer system or peripheral equipment. Included in this category are operating
systems, data base management systems, language interpreters, assemblers and compilers,
communications software, and other essential system software.
Cost Installation Final Bid Submission
More than $100,000 8 months 6 months
$10,000 up to $100,000 4 months 3 months
Less than $10,000 1 month 1 month
Category 2 - All Information Technology Equipment and Non-Critical Software: Information
technology equipment is defined in SAM 4819.2.
Cost Installation Final Bid Submission
More than $100,000 6 months 4 months
$10,000 up to $100,000 4 months 3 months
Less than $10,000 1 month 1 month
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NOT SPECIFICALLY PRICED ITEMS
The only time that open market/incidental, non-schedule items may be included in a CMAS order is
when they fall under the parameters of the Not Specifically Priced (NSP) Items provision.
CMAS contractors must be authorized providers of the hardware, software and/or services they
offer under the NSP Items provision.
Agency and CMAS contractor use of the NSP provision is subject to the following requirements:
1. Purchase orders containing only NSP items are prohibited.
2. A purchase order containing NSP items may be issued only if it results in the lowest overall
alternative to the State.
3. NSP items shall be clearly identified in the order. Any product or service already specifically
priced and included in the base schedule may not be identified as an NSP item.
4. NSP Installation Services: The CMAS contractor is fully responsible for all installation
services performed under the CMAS. Product installations must be performed by
manufacturer authorized personnel and meet manufacturer documented specifications. The
prime contractor, as well as any subcontractors, must hold any certifications and/or licenses
required for the project. The total dollar value of all installation services included in the
purchase order cannot exceed the dollar value of the products included in the purchase
order, nor can they exceed the NSP Maximum Order Limitation.
5. Maximum Order Limitation: For orders $250,000, or less, the total dollar value of all NSP
items included in a purchase order shall not exceed $5,000. For orders exceeding
$250,000, and at the option of the contractor, the total dollar value of all NSP items in a
purchase order shall not exceed 5% of the total cost of the order or $25,000 whichever is
lower.
6. An NSP item included in an order issued against a CMAS is subject to all of the terms and
conditions set forth in the contract.
7. Trade-ins, upgrades, involving the swapping of boards, are permissible, where the contract
makes specific provisions for this action. In those instances, where it is permitted, the
purchase order must include the replacement item and a notation that the purchase involves
the swapping of a board.
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The following NSP items are specifically excluded from any order issued under this CMAS:
1. Items not intended for use in direct support of the priced items included in the same order.
An NSP item must be subordinate to the specifically priced item that it is supporting. For
example, a cable, which is not otherwise specifically priced in the base schedule, is
subordinate to a specifically priced printer or facsimile machine and is eligible to be an NSP
item subject to that cable meeting the remaining NSP requirements. However, a printer or
facsimile machine, which is not otherwise specifically priced in the base schedule, is not
subordinate to a specifically priced cable, and is not eligible to be an NSP item.
2. Supply type items, except for the minimum amount necessary to provide initial support to
the priced items included in the same order.
3. Items that do not meet the Productive Use Requirements for information technology
products, per SCM, Volume 3, Chapter 2, 2.B6.2 and SCM, Volume FISCal, Chapter 2,
2.E3.2.
4. Any other item or class of items specifically excluded from the scope of this CMAS.
5. Public Works components NOT incidental to the total purchase order amount.
6. Products or services the CMAS contractor is NOT factory authorized or otherwise certified
or trained to provide.
7. Follow-on consultant services that were previously recommended or suggested by the same
CMAS contractor.
The CMAS contractor is required to reject purchase orders containing NSP items that do not
conform to the above requirements. The CMAS contractor will promptly notify the agency issuing
the non-conforming order of its non-acceptance and the reasons for its non-acceptance.
STATE AND LOCAL GOVERNMENTS CAN USE CMAS
State and local government agency use of CMAS is optional. A local government is any city,
county, city and county, district, or other local governmental body or corporation, including
Universities of California, California State Universities, K-12 schools, and community colleges
empowered to expend public funds. While the State makes this CMAS available, each local
government agency should make its own determination whether the CMAS program is consistent
with its procurement policies and regulations.
PCC 10298 allows any city, county, city and county, district, or other local governmental body or
corporation empowered to expend public funds to contract with suppliers awarded CMAS without
further competitive bidding.
See complete PCC 10298 language at
(leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=PCC§ionNum=10298).
CALIFORNIA MULTIPLE AWARD SCHEDULE (CMAS)
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PCC 10299 allows any school district empowered to expend public funds to utilize CMAS without
further competitive bidding.
See complete PCC 10299 language at
(leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=PCC§ionNum=10299).
UPDATES AND/OR CHANGES
A CMAS supplement is not required for updates and/or changes once the update and/or change
becomes effective for the base schedule, except as follows:
x A CMAS supplement is required when the CMAS is based on specific products and/or
services from another contractor’s multiple award contract and the contractor wants to add a
new manufacturer’s products and/or services.
x A CMAS supplement is required for new federal contract terms and conditions that
constitute a material difference from existing contract terms and conditions. A material
change has a potentially significant effect on the delivery, quantity or quality of items
provided, the amount paid to the contractor or on the cost to the State.
SELF-DELETING BASE SCHEDULE TERMS AND CONDITIONS
Instructions, or terms and conditions that appear in the Special Items or other provisions of the
base schedule and apply to the purchase, license, or rental (as applicable) of products or services
by the US Government in the United States, and/or to any overseas location shall be self-deleting.
(Example: "Examinations of Records" provision).
Federal regulations and standards, such as Federal Acquisition Regulation, Federal Information
Resources Management Regulation, Federal Information Processing Standards, General Services
Administration Regulation, or Federal Installment Payment Agreement shall be self-deleting.
Federal blanket orders and small order procedures are not applicable.
ORDER OF PRECEDENCE
The CMAS Terms and Conditions takes precedence if there is a conflict between the terms and
conditions of the contractor's base schedule, packaging, invoices, catalogs, brochures, technical
data sheets or other documents (see CMAS Terms and Conditions, CONFLICT OF TERMS).
APPLICABLE CODES, POLICIES AND GUIDELINES
All California codes, policies, and guidelines are applicable. The use of CMAS does not reduce or
relieve state agencies of their responsibility to meet statewide requirements regarding contracting
or the procurement of goods or services. Most procurement and contract codes, policies, and
guidelines are incorporated into CMAS agreements. Nonetheless, there is no guarantee that every
possible requirement that pertains to all the different and unique State processes has been
included.
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PAYMENTS AND INVOICES
1. Payment Terms
Payment terms for this CMAS are net 45 days.
Payment will be made in accordance with the provisions of the California Prompt Payment Act,
GC 927. Unless expressly exempted by statute, the Act requires State agencies to pay properly
submitted, undisputed invoices not more than 45 days after (1) the date of acceptance of goods
or performance of services; or (2) receipt of an undisputed invoice, whichever is later.
2. Payee Data Record (Standard 204)
State Agencies not transacting in FISCal, must obtain a copy of the Payee Data Record
(Standard 204) in order to process payments. State Ordering Agencies must forward a copy of
the Standard 204 to their accounting offices. Without the Standard 204, payment may be
unnecessarily delayed. State Agencies should contact the CMAS contractor for copies of the
Payee Data Record.
3. DGS Administrative and Incentive Fees
Orders from State Agencies:
DGS will bill each State agency directly an administrative fee for use of CMAS. The
administrative fee should NOT be included in the order total or remitted before an invoice is
received from DGS. This administrative fee is waived for CMAS purchase orders issued to
California certified small businesses.
Orders from Local Government Agencies:
CMAS contractors, who are not California certified small businesses, are required to remit to
DGS an incentive fee equal to a percentage of the total of all local government agency orders
(excluding sales tax and shipping) placed against their CMAS.
The incentive fee is waived for CMAS purchase orders issued to California certified small
businesses.
4. Contractor Invoices
Unless otherwise stipulated, the CMAS contractor must send their invoices to the agency
address set forth in the purchase order. Invoices shall be submitted in triplicate and shall
include the following:
x CMAS number
x Agency purchase order number
x Agency Bill Code (State Only)
x Line item number
x Unit price
x Extended line item price
x Invoice total
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State sales tax and/or use tax shall be itemized separately and added to each invoice as
applicable.
The company name on the CMAS, purchase order and invoice must match or the State
Controller’s Office will not approve payment.
5. Advance Payments
Advance payment is allowed for services only under limited, narrowly defined circumstances,
i.e., between specific departments and certain types of non-profit organizations, or when paying
another government agency (GC 11256 through 11263 and 11019).
It is NOT acceptable to pay in advance, except software maintenance and license fees, which
are considered a subscription and may be paid in advance if a provision addressing payment in
advance is included in the purchase order.
Software warranty upgrades and extensions may also be paid for in advance, one time.
6. Credit Card
The CMAS contractor does not accept the State of California credit card (CAL-Card).
7. Leasing/Financing
California State Agencies are required to utilize the Golden State Financial Marketplace (GS
SMart) program for all financing and leasing needs. California Local Government Agencies
(counties, cities, K-12 school districts, community colleges, California State Universities,
Universities of California, etc.) may utilize the GS SMart program for financing and leasing
according to PCC 14937. The minimum dollar amount for Local Government Agency financing
and leasing is $100,000.
8. Lease/Purchase Analysis
State agencies must complete a Lease/Purchase Analysis (LPA) to determine best value when
contemplating a lease/rental and retain a copy for future audit purposes (SAM 3710).
For short-term rental equipment, the lease/purchase analysis must be approved by DGS Office
of legal Services.
The lease/purchase analysis for all other purchases must be approved by the Department of
General Services, GS SMart State Financial Marketplace. Buyers may contact the GS SMart
Administrator, Kris Bianchini via e-mail at kristopher.bianchini@dgs.ca.gov for further
information.
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9. Leasing
The State reserves the right to select the form of payment for all procurements, be it either an
outright purchase with payment rendered directly by the State, or a financing/lease-purchase or
operating lease via the State Financial Marketplace (GS SMart and/or Lease SMart). If payment
is via the financial marketplace, the Supplier will invoice the State and the State will approve
the invoice and the selected Lender/Lessor for all product listed on the State’s procurement
document will pay the supplier on behalf of the State.
Buyers may contact the GS SMart Administrator, Kris Bianchini via e-mail at
kristopher.bianchini@dgs.ca.gov for further information.
10. Maintenance Tax
The California Department of Tax and Fee Administration has ruled that in accordance with
Section 1546 of the Sales and Use Tax Regulations of the Business Taxes Law Guide,
whenever optional maintenance contracts include consumable supplies, such supplies are
subject to sales tax.
Generally, the State has two options:
1. For agreements that provide for only maintenance services (i.e., the furnishing of labor and
parts necessary to maintain equipment), the charges for the provision of maintenance
services are not taxable.
2. For agreements that provide for both maintenance services and consumable supply items
(i.e., toner, developer, and staples, for example), the provision of the consumable supplies
is considered a taxable sale of tangible personal property. Therefore, State agencies
awarding optional maintenance contracts are responsible for paying the applicable sales tax
on the consumable supplies used during the performance period of the maintenance
contract.
The Contractor will be required to itemize the taxable consumables for State accounting
purposes.
OBTAINING COPY OF ORIGINAL CMAS AND SUPPLEMENTS
A copy of a CMAS and supplements, if any, can be obtained at Cal eProcure (caleprocure.ca.gov).
A complete CMAS consists of the following:
x CMAS cover pages (which includes the signature page, ordering instructions and special
provisions, and any attachments or exhibits as prepared by the CMAS Unit)
x CMAS Terms and Conditions.
x Base schedule terms and conditions
x Product/service listing and prices
x Supplements, if applicable.
CALIFORNIA MULTIPLE AWARD SCHEDULE (CMAS)
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It is important for the agency to confirm that the required products, services, and prices are
included in the CMAS and are at or below base schedule rates. To streamline substantiation that
the needed items are in the base schedule, the agencies should ask the CMAS contractor to
identify the specific pages from the base schedule that include the required products, services, and
prices. Agencies should save these pages for their file documentation.
CONTRACTORS ACTING AS FISCAL AGENTS ARE PROHIBITED
When a subcontractor ultimately provides all of the products or performs all of the services that a
CMAS contractor has agreed to provide, and the prime contractor only handles the invoicing of
expenditures, then the prime contractor's role becomes that of a fiscal agent because it is merely
administrative in nature and does not provide a Commercially Useful Function. It is unacceptable
to use fiscal agents in this manner because the agency is paying unnecessary administrative
costs.
AGENCY RESPONSIBILITY
Each agency is responsible for its own contracting program and purchasing decisions, including
use of the CMAS program and associated outcomes.
This responsibility includes, but is not necessarily limited to, ensuring the necessity of the services,
securing appropriate funding, complying with laws and policies, preparing the purchase order in a
manner that safeguards the State’s interests, obtaining required approvals, and documenting
compliance with GC 19130.b (3) for outsourcing services.
It is the responsibility of each agency to consult as applicable with their legal staff and contracting
offices for advice depending upon the scope or complexity of the purchase order.
If you do not have legal services available to you within your agency, DGS Office of Legal Services
is available to provide services.
CONFLICT OF INTEREST
Agencies must evaluate the proposed purchase order to determine if there are any potential
conflict of interest issues. See the CMAS Terms and Conditions, Conflict of Interest, for more
information.
FEDERAL DEBARMENT
When federal funds are being expended, the agency is required to obtain (retain in file) a signed
“Federal Debarment” certification from the CMAS contractor before the purchase order is issued.
This certification is required by the regulations implementing Executive Order 12549, Debarment
and Suspension, 29 CFR Part 98, Section 98.510, Participants; responsibilities. The regulations
were published as Part VII of the May 26, 1988 Federal Register (pages 19160-19211).
CONTRACTOR TRAVEL
The Travel provision is not applicable to this CMAS.
CALIFORNIA MULTIPLE AWARD SCHEDULE (CMAS)
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LIQUIDATED DAMAGES FOR LATE DELIVERY
The value of the liquidated damages cannot be a penalty, must be mutually agreed upon by
agency and contractor and included in the purchase order to be applicable.
ACCEPTANCE TESTING CRITERIA
If the agency wants to include acceptance testing for all newly installed technology systems, and
individual equipment, and machines which are added or field modified (modification of a machine
from one model to another) after a successful performance period, the test criteria must be
included in the purchase order to be applicable.
AMERICANS WITH DISABILITY ACT
To view the DGS Accessibility Policy, please visit www.dgs.ca.gov/Configuration/Footer-Utility-
Links/Accessibility/Accessibility.
EXHIBIT %
City’s Insurance and Indemnity
Exhibit %
Insurance and Indemnity
INDEMNIFICATION
To the furthest extent allowed by law, VENDOR shall defend, indemnify and hold
harmless CITY from and against any and all direct and indirect claims, losses, liabilities,
damages, costs and expenses (including losses and costs incurred by CITY and any
reasonable attorney's fees and costs to enforce this agreement) which arise from
VENDOR’s negligence or willful misconduct; a breach of VENDOR’s confidentiality
(information not of public record) obligations arising from VENDOR’s negligence or
willful misconduct; or VENDOR’s violation of a law applicable to VENDOR’s
performance under the contract. CITY agrees to provide VENDOR with reasonable
assistance, cooperation, and information in defending the claim at VENDOR’s expense.
To the furthest extent allowed by law, VENDOR shall defend, indemnify, and hold
harmless CITY from third-party claims that the software and/or documentation infringes
an intellectual property.
If VENDOR subcontracts all or any portion of the services to be performed under this
Agreement, VENDOR will require each subcontractor to indemnify, hold harmless and
defend CITY and your officers, officials, employees, agents and volunteers in
accordance with this paragraph.
This section shall survive termination or expiration of this Agreement.
INSURANCE REQUIREMENTS
(a) Throughout the life of this Agreement, VENDOR shall pay for and maintain in full
force and effect all insurance as required herein with an insurance company(ies) either
(i) admitted by the California Insurance Commissioner to do business in the State of
California and rated no less than “A-VII” in the Best’s Insurance Rating Guide, or (ii) as
may be authorized in writing by CITY'S Risk Manager or his/her designee at any time
and in his/her sole discretion. The required policies of insurance as stated herein shall
maintain limits of liability of not less than those amounts stated therein. However, the
insurance limits available to CITY, its officers, officials, employees, agents and
volunteers as additional insureds, shall be the greater of the minimum limits specified
therein or the full limit of any insurance proceeds to the named insured.
(b) If at any time during the life of the Agreement or any extension, VENDOR or any
of its subcontractors fail to maintain any required insurance in full force and effect, all
services and work under this Agreement shall be discontinued immediately, and all
payments due or that become due to VENDOR shall be withheld until notice is received
by CITY that the required insurance has been restored to full force and effect and that
the premiums therefore have been paid for a period satisfactory to CITY. Any failure to
maintain the required insurance shall be sufficient cause for CITY to terminate this
Agreement. No action taken by CITY pursuant to this section shall in any way relieve
VENDOR of its responsibilities under this Agreement. The phrase “fail to maintain any
required insurance” shall include, without limitation, notification received by CITY that an
insurer has commenced proceedings, or has had proceedings commenced against it,
indicating that the insurer is insolvent.
(c) The fact that insurance is obtained by VENDOR shall not be deemed to
release or diminish the liability of VENDOR, including, without limitation, liability under
the indemnity provisions of this Agreement. The duty to indemnify CITY shall apply to all
claims and liability regardless of whether any insurance policies are applicable. The
policy limits do not act as a limitation upon the amount of indemnification to be provided
by VENDOR. Approval or purchase of any insurance contracts or policies shall in no
way relieve from liability nor limit the liability of VENDOR, vendors, suppliers, invitees,
contractors, sub-contractors, subcontractors, or anyone employed directly or indirectly
by any of them.
Coverage shall be at least as broad as:
1. The most current version of Insurance Services Office (ISO) Commercial General
Liability Coverage Form CG 00 01, providing liability coverage arising out of your
business operations. The Commercial General Liability policy shall be written on an
occurrence form and shall provide coverage for “bodily injury,” “property damage” and
“personal and advertising injury” with coverage for premises and operations (including
the use of owned and non-owned equipment), products and completed operations, and
contractual liability (including, without limitation, indemnity obligations under the
Agreement) with limits of liability not less than those set forth under “Minimum Limits of
Insurance.”
2. The most current version of ISO *Commercial Auto Coverage Form CA 00 01,
providing liability coverage arising out of the ownership, maintenance or use of
automobiles in the course of your business operations. The Automobile Policy shall be
written on an occurrence form and shall provide coverage for all owned, hired, and non-
owned automobiles or other licensed vehicles (Code 1- Any Auto).
3. Workers’ Compensation insurance as required by the State of California and
Employer’s Liability Insurance.
4. Cyber Liability (Privacy and Data breach) insurance appropriate to VENDOR’S
profession. Coverage shall be sufficiently broad to respond to duties and obligations as
is undertaken by VENDOR in this agreement and shall include but not be limited to,
claims involving infringement of intellectual property, including but not limited to
infringement of copyright, trademark, trade dress, invasion of privacy violations,
information theft, damage to or destruction of electronic information, release of private
information, alteration of electronic information, extortion and network security. The
policy shall provide coverage for breach response costs as well as regulatory fines
penalties and credit monitoring expenses with limits sufficient to respond to these
obligations.
MINIMUM LIMITS OF INSURANCE
VENDOR shall procure and maintain for the duration of the contract, and for 5 years
thereafter, insurance with limits of liability not less than those set forth below. However,
insurance limits available to CITY, its officers, officials, employees, agents and
volunteers as additional insureds, shall be the greater of the minimum limits specified
herein or the full limit of any insurance proceeds available to the named insured:
1. COMMERCIAL GENERAL LIABILITY
(i) $1,000,000 per occurrence for bodily injury and property damage;
(ii) $1,000,000 per occurrence for personal and advertising injury;
(iii) $2,000,000 aggregate for products and completed operations; and,
(iv) $2,000,000 general aggregate applying separately to the work performed
under the Agreement.
2. COMMERCIAL AUTOMOBILE LIABILITY
$1,000,000 per accident for bodily injury and property damage.
3. Workers’ Compensation Insurance as required by the State of California with
statutory limits and EMPLOYER’S LIABILITY with limits of liability not less than:
(i) $1,000,000 each accident for bodily injury;
(ii) $1,000,000 disease each employee; and,
(iii) $1,000,000 disease policy limit.
4. CYBER LIABILITY insurance with limits of not less than:
(i) $1,000,000 per claim/occurrence; and,
(ii) $2,000,000 policy aggregate
UMBRELLA OR EXCESS INSURANCE
In the event VENDOR purchases an Umbrella or Excess insurance policy(ies) to meet
the “Minimum Limits of Insurance,” this insurance policy(ies) shall “follow form” and
afford no less coverage than the primary insurance policy(ies). In addition, such
Umbrella or Excess insurance policy(ies) shall also apply on a primary and non-
contributory basis for the benefit of the CITY, its officers, officials, employees, agents
and volunteers.
DEDUCTIBLES AND SELF-INSURED RETENTIONS
VENDOR shall be responsible for payment of any deductibles contained in any
insurance policy(ies) required herein and VENDOR shall also be responsible for
payment of any self-insured retentions.
OTHER INSURANCE PROVISIONS/ENDORSEMENTS
(i) All policies of insurance required herein shall be endorsed to provide that the
coverage shall not be cancelled, non-renewed, reduced in coverage or in limits except
after thirty (30) calendar days written notice has been given to CITY, except ten (10)
days for nonpayment of premium. VENDOR is also responsible for providing written
notice to the CITY under the same terms and conditions. Upon issuance by the insurer,
broker, or agent of a notice of cancellation, non-renewal, or reduction in coverage or in
limits, VENDOR shall furnish CITY with a new certificate and applicable endorsements
for such policy(ies). In the event any policy is due to expire during the work to be
performed for CITY, VENDOR shall provide a new certificate, and applicable
endorsements, evidencing renewal of such policy not less than fifteen (15) calendar
days prior to the expiration date of the expiring policy.
(ii) The Commercial General and Automobile Liability insurance policies shall be
written on an occurrence form.
(iii) The Commercial General and Automobile Liability insurance policies shall be
endorsed to name City, its officers, officials, agents, employees and volunteers as an
additional insured all ongoing and completed operations. Additional Insured
endorsements under the General Liability policy must be as broad as that contained in
ISO Forms: GC 20 10 11 85 or both CG 20 10 & CG 20 37.
(iv) The Commercial General and Automobile Liability insurance shall contain, or be
endorsed to contain, that VENDOR’S insurance shall be primary to and require no
contribution from the City. Primary and Non Contributory language under the General
Liability policy must be as broad as that contained in ISO Form CG 20 01 04 13. These
coverages shall contain no special limitations on the scope of protection afforded to City,
its officers, officials, employees, agents and volunteers.
(v) Should any of these policies provide that the defense costs are paid within the
Limits of Liability, thereby reducing the available limits by defense costs, then the
requirement for the Limits of Liability of these polices will be twice the above stated
limits.
(vi) All insurance policies required herein shall contain, or be endorsed to contain, a
waiver of subrogation as to CITY, its officers, officials, agents, employees and
volunteers.
The Cyber Liability insurance shall cover claims involving privacy violations, information
theft, damage to or destruction of electronic information, intentional and/or unintentional
release of private information (including credit monitoring costs), alteration of electronic
information, extortion and network security. Such coverage is required for claims
involving any professional services for which VENDOR is engaged with the City for such
length of time as necessary to cover any and all claims
If the Cyber Liability insurance policy is written on a claims-made form:
1. The retroactive date must be shown, and must be before the effective date of the
Agreement or the commencement of work by VENDOR.
2. Insurance must be maintained and evidence of insurance must be provided for at
least five (5) years after completion of the Agreement work or termination of the
Agreement, whichever occurs first, or, in the alternative, the policy shall be endorsed to
provide not less than a five (5) year discovery period.
3. If coverage is canceled or non-renewed, and not replaced with another claims-
made policy form with a retroactive date prior to the effective date of the Agreement or
the commencement of work by VENDOR, VENDOR must purchase “extended
reporting” coverage for a minimum of five (5) years completion of the Agreement work
or termination of the Agreement, whichever occurs first.
4. A copy of the claims reporting requirements must be submitted to CITY for
review.
5. These requirements shall survive expiration or termination of the Agreement.
Should any of these policies provide that the defense costs are paid within the Limits of
Liability, thereby reducing the available limits by defense costs, then the requirement for
the Limits of Liability of these polices will be twice the above stated limits.
PROVIDING OF DOCUMENTS
VENDOR shall furnish CITY with all certificate(s) and applicable endorsements effecting
coverage required herein. All certificates and applicable endorsements are to be
received and approved by the CITY’S Risk Manager or his/her designee prior to CITY’S
execution of the Agreement and before work commences. All non-ISO endorsements
amending policy coverage shall be executed by a licensed and authorized agent or
broker. Upon request of CITY, VENDOR shall immediately furnish CITY with a complete
copy of any insurance policy required under this Agreement, including all endorsements,
with said copy certified by the underwriter to be a true and correct copy of the original
policy. This requirement shall survive expiration or termination of this Agreement. All
subcontractors working under the direction of VENDOR shall also be required to provide
all documents noted herein.
SUBCONTRACTORS
If VENDOR subcontracts any or all of the services to be performed under this
Agreement, VENDOR shall be solely responsible for ensuring that it’s subcontractors
maintain insurance coverage at levels no less than those required by applicable law and
is customary in the relevant industry.
EXHIBIT &
City and Vendor Renewal Quote
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City of Fresno
Staff Report
2600 Fresno Street
Fresno, CA 93721
www.fresno.gov
File #:ID 25-128 Agenda Date:1/30/2025 Agenda #:
2.-K.
REPORT TO THE CITY COUNCIL
FROM:AARON A. AGUIRRE, Director
Parks, After School, Recreation and Community Services Department
BY:SHELBY MACNAB, Assistant Director
Parks, After School, Recreation and Community Services Department
SUBJECT
RESOLUTION - Adopting the Measure P Expanded Access to Arts and Culture Grant Guidelines.
RECOMMENDATION
The PARCS Department recommends that the City Council consider the adoption of the grant
guidelines for the Measure P Expanded Access to Arts and Culture Grant Program as recommended
by the Parks, Recreation, and Arts Commission (Commission).
EXECUTIVE SUMMARY
The Fresno Clean and Safe Neighborhood Parks Transaction and Use Tax (Measure P) allocates
12% of funds collected for competitive grants for nonprofit organizations to expand access to arts and
culture. The grant guidelines are prepared by the Fresno Arts Council in partnership with the
Commission and must be presented to the Fresno City Council for consideration and adoption.
BACKGROUND
In 2018, a majority of Fresno voters approved Measure P, which was thereafter codified in Chapter 7,
Article 15 of the Fresno Municipal Code (FMC). Twelve percent (12%) of the funds from Section 7-
1504 shall be made available on an annual basis to invest in competitive grants for nonprofit
organizations that support and expand access to arts and cultural programming. On August 10, 2023
the City of Fresno entered into an Administrative Services Agreement with the Fresno Arts Council to
administer the Expanded Access to Arts and Culture Grant Program and on December 7, 2023, the
Fresno City Council adopted the grant guidelines for the first year of the grant program.
After the first round of grant awards, The Fresno Arts Council drafted proposed modifications to the
grant guidelines in partnership with the Commission. On September 30, 2024, the proposed
modifications to the grant guidelines were introduced to the Commission and presented during a
Commission hearing. On October 28, 2024, a subcommittee comprised of three Commissioners was
formed to provide input during the guideline revision process. On November 18, 2024, a second
presentation and hearing were held during the Commission meeting. On December 16, 2024, the
City of Fresno Printed on 2/7/2025Page 1 of 2
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1-30-2025
MA/TM 4-1
AS AMENDED, NR VOTED NO
NE & DISTRICT 5 (VACANT)
ABSENT. R. 2025-19
File #:ID 25-128 Agenda Date:1/30/2025 Agenda #:
2.-K.
presentation and hearing were held during the Commission meeting.On December 16,2024,the
Commission approved the modifications to the grant guidelines by a vote of 8-0.
.
The Administrative Services Agreement requires the grant guidelines to be consistent with the
priorities,recommendations,and strategies identified in the City’s Cultural Arts Plan.The guidelines
must also be consistent with Measure P Ordinance requirements.Grant guidelines are required to
include all information necessary to ensure a transparent process including scoring criteria,eligible
scoring committee members,a process for public disclosure of potential conflicts of interest,priority
funding categories, expenditure delivery deadlines, and risk assessments.
Proposed updates are outlined in the attached presentation and include the addition of a letter of
intent and policy recommendations,eligibility adjustments,expanding the appeals process,and
increasing the maximum funding for general operating support for established organizations.Prior to
initiating the next round of grantmaking,the Fresno Arts Council and the Commission request that the
Council review and approve the guidelines.The proposed grant guidelines have been reviewed by
the City Attorney’s Office.
ENVIRONMENTAL FINDINGS
Pursuant to California Environmental Quality Act (CEQA)Guidelines Section 15378,this item is not a
project for the purposes of CEQA.
LOCAL PREFERENCE
N/A- Does not apply to this action.
FISCAL IMPACT
Twelve percent (12%)of the funds made available from Section 7-1504 in article 15 shall be made
available on an annual basis to invest in competitive grants.Funding for the grant program and grant
program administration is reflected in the FY 2025 PARCS budget and fully encumbered to the
Fresno Arts Council consistent with the Agreement.
Attachments:
Resolution with attachments
Fresno Arts Council Presentation
City of Fresno Printed on 2/7/2025Page 2 of 2
powered by Legistar™
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1
Expanded Access to Arts and Culture Fund
Emerging Organization Project Specific Support Guidelines
Funded by Measure P
Administered by Fresno Arts Council in partnership with the City of Fresno Parks,
Recreation, and Arts Commission (PRAC)
Letter of Intent Submission Deadline: TBA
EAAC Project Specific Support Application Deadline: TBA
Important Dates (subject to change)
Letter of Intent Application Opens TBA
Letter of Intent Deadline TBA
EAAC Project Specific Support Applications
Open
TBA
EAAC Project Specific Support Applications
Deadline
TBA
Grant Panel Review TBA
PRAC Commission Review and Adopts
Recommendations
TBA
Notice of Intent to Award TBA
Awards Disbursed TBA
Grant Activity Period TBA
For a copy of the guidelines in Spanish, contact the Fresno Arts Council at 559-237-9734
Para obtener una copia de las pautas en español, llame a Fresno Arts Council (el
Consejo de las Artes de Fresno) al 559.237.9734.
For a copy of the guidelines in Hmong, contact the Fresno Arts Council at 559-237-9734.
Hu rau lub Fresno Art Council ntawn 559-237-9734 yog tias koj xav tau ib daim ntawv
luam u alus Hmoob txog peb cov lus coj qhia.
For a copy of guidelines in Punjabi contact the Fresno Arts Council at 559-237-9734
ਪੰ ਜਾਬੀ ਿਵਚ ਿਵਸਾ-ਿਵਿਰੇਸ਼ਾਂ ਿ◌◌ੀ ਕਾਪੀ ਲਈ ਫਵਰਿਜ਼ੋ ਆਰਟਸ ਕੌਂ ਸਲ ਿ◌◌ੰ 559-237-9734 'ਤੇ ਸੰ ਪਰਕ ਕਰੋ
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2
Fresno Arts Council Information
Who We Are
The Fresno Arts Council (FAC) is the state-local partner to the California Arts Council,
designated by Resolution of the County Board of Supervisors to serve as the County’s arts
agency. It is designated as the City of Fresno’s arts agency by Memorandum of
Understanding. As the local arts agency, the FAC provides financial support, services, and
other programs to a variety of cultural arts organizations, individual artists, and diverse
communities throughout Fresno County.
Our mission is to enrich people’s lives through the arts, and our purpose is to foster an arts
community that recognizes and honors the contributions of its citizens to the arts. We are
managed by a volunteer board of directors, and our agency solicits financial support from
foundations, membership dues, government and corporate funders, as well as private
donors.
The Fresno Arts Council (FAC) will award grants generated by the Measure P sales tax to
nonprofit community-based organizations for the purpose of increasing access to the Arts
in the City of Fresno.
Contact Information:
Please direct questions regarding Operating Grant Guidelines to Lilia Gonzáles Chávez,
Executive Director, at lilia@fresnoartscouncil.org.
Cultural Arts Grant Overview
Measure P
In 2018, City of Fresno residents voted to approve Measure P, also known as the FRESNO
CLEAN AND SAFE NEIGHBORHOOD PARKS TRANSACTIONS AND USE TAX, a three-eighths
(.0375) percent sales tax ordinance, dedicated to improving parks, arts, and recreation
facilities, services, and access in the City of Fresno. Funds collected by the sales tax can
be used for purposes including, but not limited to, clean and safe parks; new parks and
recreation facilities; youth and senior recreation and after-school facilities and job
training; improved walking and biking trails; the San Joaquin River Parkway; beautification
of streets; and expanded access to arts and culture. Measure P is a renewable thirty-year
initiative implemented by the City of Fresno with oversight by the Parks, Recreation, and
Arts Commission (PRAC), a nine member committee established by the ordinance, with
Mayoral appointments.
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Twelve percent (12%) of funds collected by the sales tax are designated for improving
access to arts and culture via competitive grants for cultural arts nonprofit organizations
within City limits. This process is discussed in category 4 of the ordinance.
Fresno Municipal Code Section 7-1506(b)(4) Expanded Access to Arts
and Culture.
(A) Twelve percent (12%) percent of the funds made available from Section 7-1504 shall be
made available on an annual basis to invest in competitive grants for nonprofit
organizations that support and expand access to arts and cultural programming.
(B) Grants funded pursuant to this paragraph shall be implemented by the Commission in
partnership with the Fresno Arts Council, or its successor local arts agency, using multiple
solicitations that allow for a diverse set of programs, with different program sizes and
reach, including core operating and project-support grants, to be funded. The Commission
shall ensure that grant applications are reviewed in a transparent, competitive process.
(C) Prior to the implementation of subparagraph (B), the Commission shall work in
partnership with the Fresno Arts Council, and local arts and cultural stakeholders, to
develop a Cultural Arts Plan for the City of Fresno that would identify needs in the arts and
cultural community; prioritize outcomes and investments; and develop a vision and goals
for the future of Fresno arts and cultural programs that are reflective of the cultural,
demographic, and geographic diversity of Fresno. This process shall include a robust
community engagement process, including multiple public meetings. The Cultural Arts
Plan shall be updated every five years by the Commission.
(D) Funding for operating support distributed pursuant to this paragraph shall support
organizational stability for arts and cultural organizations that reflect the cultural,
geographic and demographic diversity of the City of Fresno; and reflect the proportion of
each grantee's overall operations that serves residents within, or visitors to, the City of
Fresno sphere of influence.
(E) Grants funded pursuant to subparagraph (B) shall prioritize organizations and programs
that support and expand diverse public or youth engagement and equity.
Cultural Arts Plan
Fresno’s Cultural Arts Plan was developed through a year-long process involving robust
community participation. A partnership between a consultant group, Network for Culture
and Arts Policy (NCAP), the City of Fresno PARCS Department, Fresno Arts Council, and the
Parks, Recreation and Arts Commission (PRAC), with multiple opportunities for public
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surveys, meetings, and draft comments, individual interviews with community arts
stakeholders, and research into Fresno’s cultural arts assets and needs, ultimately led to
the approval and adoption of Fresno’s Cultural Arts Plan, which must be reassessed and
updated every five years, according to requirements set forth in the ordinance. The Cultural
Arts Plan was adopted by the Fresno City Council on August 10, 2023.
Fresno’s Cultural Arts Plan identifies the following goals, with associated strategies, in
addition to defining funding priorities. These goals and funding priorities informed the
development of Cultural Arts Grant Programs, managed by the Fresno Arts Council with
stakeholder input and PRAC involvement and oversight.
Cultural Arts Plan Vision
Cultural arts in Fresno will be recognized, prioritized, inclusive, accessible, and continue to
reflect, celebrate, and connect the community.
Goals and Outcomes
(see Cultural Plan at https://www.fresnoartscouncil.org/fresnos-cultural-arts-plan for
recommendations, strategies, and funding priorities):
I. GRANT-MAKING & COMMUNITY ENGAGEMENT
Desired Outcome: Establish a strong foundation to support and expand access to
arts and culture through grant-making and community engagement.
II. STABILIZE, RESTORE & ACTIVATE
Desired Outcome: Cultural arts organizations and assets will be stabilized, restored
and activated to expand access to arts and culture.
III. EDUCATION & ORGANIZATIONAL DEVELOPMENT
Desired Outcome: Expand access to a variety of arts and cultural education
programs to provide educational opportunities for people of all ages.
Desired Outcome: Equip artists, cultural practitioners and organizations with the
skills and organizational resources to stabilize and expand operations.
IV. CELEBRATE & ENHANCE
Desired Outcome: Elevate and celebrate arts and culture to strengthen a sense of
community.
V. ADDRESS BARRIERS, INNOVATE & EXPAND
Desired Outcome: Expand access to arts and culture by eliminating barriers and
investing in innovation.
VI. MUNICIPAL INVESTMENTS & POLICIES TO SUPPORT CULTURAL ARTS
Desired Outcome: Establish a strong foundation to support and expand access to
arts and culture through policy planning and municipal investment.
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Expanded Access to Arts and Culture Funding Allocations A
Funding Distribution is contingent on availability of funds and number of applications
received in each category. The tentative distribution follows:
• 40% of available funds will be distributed for Established Organization General
Operating Support grants
• 40% of available funds will be distributed for Established Organization Project
Specific grants
• 10% of available funds will be distributed for Emerging Organization General
Operating Support grants
• 10% of available funds will be distributed for Emerging Organization Project Specific
grants
• General Operating Support Grants will not exceed $50,000 for Emerging
Organizations and $300,000 for Established Organizations
• Project Specific grants will not exceed $50,000 for Emerging Organizations and
$150,000 for Established Organizations
• An organization or fiscally sponsored entity can only apply for one project grant
• Emerging Applicants applying under their own 501(c)3 can apply for both General
Operating Grants and Project Specific grants
locations will be recommended by the Commission with the goal to ensure that awards are
reflective of the cultural, demographic and geographic diversity of Fresno.
Emerging Organization Project Specific Support
Application Guidelines
Deadline: TBA
Grant Awards: Up to $50,000
Grant Activity Period: TBA
Eligibility for Funding
Project Specific Grants will be made to support specific projects that respond to the goals
of the Cultural Plan. Project Specific Grants can be used to pay artists’ fees, acquire
project-specific supplies and materials, or acquire equipment required to complete the
project; venue, and technical costs are additional examples of allowable expenses.
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Grants shall prioritize organizations and programs that support and expand diverse public
or youth engagement and equity.
*Note: Future Grant Programs informed by the Cultural Arts Plan and future CAP revisions
may be developed. Guidelines will be posted as new funding programs are offered. Please
visit fresnoartscouncil.org for updates and information.
Eligibility: Who Can Apply for Emerging Organization Project Specific Support?
Emerging Organizations can apply ONLY in the Emerging category
Emerging Organizations applying under their own 501(c)3 can apply for both General
Operating Support Grants and Project Specific Grants
Eligible Organizations
• Organizations with an annual budget less than $50,000, as presented to the IRS in
their 990 or in their most recent board-approved Balance Sheet and Statement of
Activities
• Organizations with a budget of less than $50,000 who are applying under a Fiscal
Sponsor
• A collective of individual artists applying under a Fiscal Sponsor
• First time EAAC applicants with a budget greater than $50,000 who have fewer than
two years of consecutive arts and culture programming
• Organizations with active status who are in good standing with the Office of Attorney
General, California Secretary of State (SOS), and Internal Revenue Service (IRS
Charities) at the time of signing the Service Agreement.
Eligibility: Who Can’t Apply for Emerging Organization Project Specific
Support?
Ineligible Organizations
• Organizations without a principal place of business in the City of Fresno. P.O. Boxes
will not be accepted as official business address.
• Organizations with an annual budget of greater than $50,000
• Fiscally sponsored organizations, collectives, and individuals with an annual
budget of more than $50,000
• Organizations whose primary mission is to raise funds
• Organizations whose primary function is regranting
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• K-12 Schools; County Offices of Education; Public and Private Colleges and
Universities
• Government agencies that receive funding from the City of Fresno Budget.
• Organizations that do not serve the public and/or provide public programing.
• Organizations that are not in good standing with the Office of Attorney General,
California Secretary of State (SOS), Internal Revenue Service (IRS Charities)
• For-profit businesses or sole proprietorships
Fiscal Sponsors
A Fiscal Sponsor is a nonprofit organization that provides fiduciary oversight, financial
management, and other administrative services to help build the capacity of charitable
projects.
• Fiscal Sponsors can apply for their own grant and can also apply on behalf of
multiple different projects with different applicant organizations
• A Fiscal Sponsor must demonstrate that arts and /or culture work of the sponsored
project is consistent with/in furtherance off the sponsoring organization’s non-
profit purpose.
• A Fiscal Sponsor must be in good standing with the IRS, the CA Secretary of State,
and the CA Office of the Attorney General
Note: any applicant organization, Established or Emerging, using a Fiscal Sponsor, is eligible
to apply ONLY for Project Specific grants, not for Operating Support
Funding Amount: Emerging Organizations can request up to $50,000
Funding Use: You can use the grant money for these things as they are
directly related to the project:
An Emerging Organization Project Specific Support grant budget is required for this
application. Examples of eligible expenses for this funding include, but are not limited to:
• Venue rental
• Equipment rental or purchase directly related to the project
• Artist or consultant fees
• Personnel: staff time directly related to the project
• Materials and Supplies
• Marketing, printing, and publishing
• Cultural Arts Instructional programs and activities
• Meeting expenses
• Research and evaluation
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• Participant stipend
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Overhead costs are fixed at 10%. The Overhead Costs refers to any expenses that are
required to run the program that are not covered in the direct costs. The industry standard
is typically calculated at 10%. In the budget template, please include overhead calculated
at 10% of the total project budget.
Funding Use: You can’t use the grant money for these things:
• Activities occurring outside of the City of Fresno
• General Operating Expenses (rent, salaries and expenses not directly related to the
proposed project)
• Capital improvement projects/expenditures
• Fundraising
• Hospitality costs, including food and beverages
• Political Advocacy or lobbying
• Projects in schools during school hours
• Projects on university campuses that are primarily for enrolled students
• Projects with religious or evangelical purposes
• Cash prizes or scholarships
• Costs of goods for resale
Funding Restrictions:
• Matching funds are not required.
• Applicants must apply for the funding category that applies to their organization.
Applicants may be directed to the appropriate category upon submission of Letter
of Intent
• Emerging organizations with an Arts and Culture NTEE designation or any other
State or Federal designation that shows the purpose of the organization is arts
and cultural programing may apply for both General Operating Support and
Project Specific Support.
• Organization must provide a discounted admission to residents of the City of Fresno
for any ticketed events or general admission to venues
• All activities funded with EAAC funds must take place in the City of Fresno, including
rehearsals, performances, and presentations.
• The organization must operate and offer its programs in a nondiscriminatory manner
and in compliance with all applicable laws, including, without limitation, laws
protecting persons with disabilities.
• All Project Specific Grants must align with the goals and outcomes of the Cultural
Arts Plan adopted by the Fresno City Council.
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• A permanent installation of public art and public performances supported with
Measure P funds must be in the City of Fresno.
• New works or installations created with Measure P funds must remain the sole
property of a City of Fresno organization.
• Projects proposing Art Therapy must be offered by Licensed Art Therapists.
Therapist’s bio and License Number must be included with the application
• All artists named in project applications must provide a letter stating that they are
available and willing to participate, and that a fee has been agreed upon.
• For any projects that will be permanently installed in a public or private space, a
maintenance plan will be required. Grant applicants are advised to consider and
adhere to site control requirements for both public and private facilities not under
their ownership and obtain preliminary approval or permits from the City of Fresno
for projects or programs conducted within the City of Fresno’s Right of Way.
Application Process
Grant Application Materials
All application materials must be submitted electronically by the deadline. The “Expanded
Access to Arts and Culture” Emerging Organization Project Specific Support grant
application consists of the following components:
• Letter of Intent (deadline TBA). Following eligibility review, applicants will be sent a
direct link to Emerging Organization Project Specific Support application
• Narrative questions (see Appendix)
• Emerging Organization Project Specific Support budget form and budget notes
• Work samples and support materials
• Applicant’s most recent board-approved financial statements—Balance Sheet and
Statement of Activities
Grants Management System
All application materials must be submitted electronically using Fresno Arts Council’s
grants management system, Submittable. Paper or physical applications are not accepted
at this time. Technical assistance for creating a Submittable account is available through
Submittable’s Customer Support (https://www.submittable.com/help/submitter/).
*Note: all communications regarding Expanded Access to Arts and Culture Fund
grants will come through Submittable ONLY to the email address of the person who
submitted the application. Notifications will be sent from email addresses ending in
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@fresnoartscouncil.org or @email.submittable.com—please make sure to add these
domain addresses to your safe senders list to avoid notifications being sent to your spam
or junk folder.
For questions, please contact Fresno Arts Council at 559-237-9734 or
lilia@fresnoartscouncil.org.
Fresno Arts Council encourages you to attend webinars, office hours, and make use of
instructional resources early in your application process. FAC strongly recommends
submitting the application and required supporting materials at least five (5) business days
before the deadline to provide time to troubleshoot any technical issues. The deadline to
submit the online grant applications will be TBA.
Technical Assistance
Technical assistance for grant program-specific inquiries is available from Fresno Arts
Council staff by email, phone, or virtual appointment. Technical assistance can provide
guidance around eligibility, application requirements, or review criteria.
Application resources will be available on Fresno Arts Council’s website at
https://www.fresnoartscouncil.org/artsandculturegrants
Email support: for technical assistance and grant guidelines questions, please call 559-
237-9734 Monday through Friday, between the hours of 9:00 am and 3:00 pm. You may
also email Executive Director, Lilia Gonzáles Chávez at lilia@fresnoartscouncil.org. Please
allow 24-48 hours for staff response.
Accommodations for Disabilities
Individuals with disabilities who need reasonable accommodations to apply should make
their requests to Fresno Arts Council staff at least 72 hours in advance of deadlines or
meetings. Please email lilia@fresnoartscouncil.org or call 559-237-9734 for
accommodations requests.
Translation Services
Grant guidelines are available in English, Hmong, Spanish, and Punjabi. Requests can be
emailed to lilia@fresnoartscouncil.org. If the application is submitted in a language other
than English, a third-party translation service will be used to translate application answers
into English for Grant Review Panelists.
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Evaluation and Scoring
Grant review panelists use the following scale to assess how well the application meets the
review criteria.
Adjudication of applications determined holistically, based on the narrative questions
included in the Appendix.
Score Rank Rank Description
6 Exemplary Overwhelmingly achieves the purpose of the program. Meets all the review criteria
and project requirements to the highest degree
5 Strong Strongly achieves the purpose of the program. Meets all the review criteria and
project requirements to a significant degree
4 Good Sufficiently achieves the purpose of the program. Meets all the review criteria and
project requirements to some degree
3 Fair Moderately achieves the purpose of the program. Meets most of the review
criteria and project requirements
2 Marginal Minimally achieves the purpose of the program. Meets some of the review criteria
and project requirements
1 Weak Does not achieve the purpose of the program; proposals that are not appropriate
for this grant category. Inadequately meets the review criteria or project
requirement
Letter of Intent Eligibility Review
Once the Letter of Intent (LOI) submission window closes, Fresno Arts Council staff will
review submissions for eligibility and completeness. Letters of Intent that pass this initial
review will then be sent a direct link to the Grant Application.
Emerging Organization Project Specific Support Grant Review Panel
An adjudication panel made up of community members, representative of the cultural,
demographic and geographic diversity of Fresno will be assembled. They may include
artists and culture bearers, and Non-Profit administrators. The Commission and Fresno
Arts Council shall ensure that grant applications are reviewed in a transparent, competitive
process.
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A call for panelists will go out at the same time as the Request for Proposal. A list of eligible
panelists will be submitted to the PRAC prior to the start of the adjudication process.
Panelists will be required to declare any possible conflict of interest at the time of
application. Declaration of Conflict-of-Interest form is included in the resources linked at
the end of this document. Panelists may not be on the board of staff of any applicant for
that grant cycle, nor related by blood or marriage to any applicant in that grant cycle.
Applicants may request their panel comments after they receive official notice of intent to
award.
Approval Process
After the Grant Review Panel meets to review all applications, Fresno Arts Council will
develop funding recommendations for PRAC’s approval. FAC ensures proposed grant awards are
aligned with granting policies and guidelines before publishing an intent to award notice. Any
applications within the City of Fresno right of way shall not be recommended for award without prior
written approval to proceed from the City of Fresno.
Note: This is a competitive program. An application may or may not be funded depending
on the number of applications, the amount of award money available, and the application’s
score based on the evaluation criteria. The eligibility of an application does not imply that it
will be automatically funded. All applicants will be notified prior to the beginning of the
funding cycle about the results of the application.
Appeal Process
Appeals Process
Any applicant not recommended to receive an award, may submit a written appeal to
Fresno Arts Council staff (we will provide the link) no later than 5:00 p.m. by the tenth
(10th) calendar day following the release of notification of Intent to Award letter.
Incomplete applications are not eligible for the appeals process. Denial of applicant’s
Letter of Intent, shall be eligible for appeal.
The letter of appeal must state:
1. The grounds on which you believe your application was not properly dealt with or
assessed;
2. Specific reasons or evidence you may have to support your appeal.
Once the appeal is received by the FAC, Staff will present it to the PRAC Subcommittee for review and
recommendation to the PRAC. The PRAC will make the final ruling.
Note: Upon request from an applicant, FAC staff will provide written comments submitted by the
evaluation panels, to help the applicant understand their score.
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Grantee requirements and Policies
Grantee Orientation and Award Disbursement
All grantees are required to attend an Expanded Access to Arts and Culture Fund grantee
orientation, submit a Scope of Work and revised budget, and complete a grant agreement
before receiving award.
90% of grant funds will be awarded at the beginning of the grants cycle with the remaining
10% awarded when final reports are submitted.
Required Standards of Practice
• Certificate of Insurance
• Workers’ Compensation
• The applicant organization must have a functioning Board of Directors that meets
regularly.
• Organization must provide a discounted admission to residents of the City of Fresno
for any ticketed events or general admission to venues
• The organization must operate and offer its programs in a nondiscriminatory manner
and in compliance with all applicable laws, including, without limitation, laws
protecting persons with disabilities.
• The organization must have active status and be in good standing with the Office of
Attorney General, California Secretary of State (SOS), Internal Revenue Service (IRS
Charities) at the time of signing the Service Agreement.
• Grantee Agreement: Vendors/Background Checks/Project Amendments/Legal
Requirements/Conflict of Interest/Incomplete Projects (see Grantee Requirement
Links)
Permits and Permissions
It is the responsibility of the grantee to secure venues, appropriate permits, and insurance
for public presentations. The grantee is solely responsible for securing the necessary City,
County, or community permits or approvals for project elements such as publicly installed
art, street closures, sound amplification in public space, or murals. Planning for this should
be reflected in the application narrative. The grantee shall be responsible for maintenance of
the project.
Quarterly Reporting
EAAC grantees will be required to submit quarterly reports including progress toward
achieving Scope of Services included in grantee agreement and program participant data
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as required by the City of Fresno
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Data
At a minimum, data collection shall include:
a. Attendance data:
i. Number of youth participants served. Youth shall be defined as age seventeen
(17) and younger
ii. Number of adult participants served. Adult shall be defined as ages eighteen
(18) through sixty-one (61)
iii. Number of senior participants served. Senior shall be defined as age sixty-two
(62) and older
b. Participant zip code data to identify the number and percentage of Fresno County
residents served
c. Race, ethnicity, household income and gender identity
d. For murals only: total square feet installed and location/address
e. Photos and/or videos highlighting grant funded projects, events, programs, etc.
Acknowledging Fresno Arts Council Support
Per the terms of the Grantee Agreement, grantees must acknowledge the support of the
Measure P, Parks and Arts Ordinance and Fresno Arts Council to demonstrate how City
funds support arts and culture. Recipients receiving funds must use the required logos
and credit line on all printed and electronic materials that advertise performances,
exhibitions, or other public events throughout their work or, for those receiving
operating support, throughout the grant period. The credit line is below. Logos will be
provided to all grantees upon signed grant agreement. Failure to comply may result in
termination of grant agreement.
“[Organization or project name] is funded in part by the City of Fresno Measure P
Expanded Access to Arts and Culture Fund administered by the Fresno Arts Council.”
Cultural Arts Calendars
Grantees must submit programming information and flyers to be included in the Cultural
Arts Calendar. Details will be provided to grantees.
Policies to be inserted in Appendix once adopted.
Measure P Ordinance
Cultural Arts Plan
Eligibility Checklist/Definitions
Letter of Intent Guidelines
Technical Assistance/Workshop Schedule
Frequently Asked Questions
Fiscal Sponsorship Resources: https://www.councilofnonprofits.org/running-
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nonprofit/administration-and-financial-management/fiscal-sponsorship-nonprofits and
https://fiscalsponsorship.com/fiscal-sponsorship-quick-start-basics/
Grantee Requirement Links
Legal Requirements:
Insurance/endorsements
Conflict of Interest disclosure statement
Monitoring, Evaluation and Reporting Requirements
Subcontracts
Acknowledgement, Copyright, Indemnification and Cultural Arts Calendar
Background Check/Mandated Reporter, etc.
SOW, Amendments and Extensions
Payment and Reporting Schedules
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Appendix: Emerging Organization Project Specific Support Grant
Narrative Questions
Project Statement
Prepare a Project Statement with 150 words or fewer that describes what you will do with
funds if awarded. Must include project title, activity, location(s) where activity will take
place, age of population to be served, projected number of people to be served, and
desired impact.
Begin Project Statement by saying: “With support from an Expanded Access to Arts and
Culture grant, [your organization] will…”
These statements may be used to report to the City of Fresno and/or be included in public
documents and press information.
Organization Mission/Purpose
What is your organization’s mission? Please provide a brief description of your
organization’s core programming, services, and/or work you do in the community.
1)Project Details
A.Describe the project’s activities.
B.Who is/are your target audience(s), and how will you engage them? (age, ethnicity,
income level, geography, etc.)?
C.What part of the city do you serve? Identify the primary zip codes where you provide
services.
D.Describe key project staff, exhibitors/presenters, artists, and other collaborators. In
what ways will your support diverse personnel, artists, and/or cultural workers?
E.What are the goals and outcomes of this project? How will you measure and
evaluate outcomes and impact? In what ways will your project engage institutionally
and/or geographically underserved communities, neighborhoods, and individuals?
In what ways will your project increase access and exposure to, and participation
within, arts and culture?
F.Provide a timeline for your project
2)Cultural Plan
A.How does your work align with the Cultural Plan?
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B. Identify the Cultural Plan goals that align most closely with your organization and
explain how your work contributes to those goals.
C. Identify and describe the ways in which your work addresses Cultural Plan specific
recommendations and strategies
3) Budget
A. How does your organization intend to make use of Project Specific Support funds if
awarded?
B. Budget Spreadsheet
C. Budget Notes
Application Materials
Budget
Please complete a project budget using the template provided in the direct application link
provided to you
Work Samples
Please upload a minimum of two work samples (maximum six) demonstrating your
organization’s recent arts and culture programming.
You are required to submit at least two work samples that exemplify the cultural and/or
artistic programs or events presented by your organization. This may include video or audio
recordings, or digital images of performances, exhibitions, or events. Select the type of
work sample that is most relevant to your organization.
Supporting Material
You may upload or provide links for up to three supporting documents from the past five
years that demonstrate the impact of your programs on viewers/participants. Examples
include: letters of support, participant testimonials, reviews, audience surveys, social
media posts.
This section is OPTIONAL; however, you are strongly encouraged to submit at least one
document. These documents help reviewers understand the impact of your programs on
participants and audience members. Note: You may upload a document or provide links.
You may provide a title and brief description for necessary context. 3 documents or links
maximum.
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Supporting Material: Financial Statements
Please upload your organization’s most recent board-approved Balance Sheet and
Statement of Activities
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Expanded Access to Arts and Culture Fund
Emerging Organization Project Specific Support Guidelines
Funded by Measure P
Administered by Fresno Arts Council in partnership with the City of Fresno Parks,
Recreation, and Arts Commission (PRAC)
Letter of Intent Submission Deadline: TBA
EAAC Project Specific Support Application Deadline: TBA
Important Dates (subject to change)
Letter of Intent Application Opens TBA
Letter of Intent Deadline TBA
EAAC Project Specific Support Applications
Open
TBA
EAAC Project Specific Support Applications
Deadline
TBA
Grant Panel Review TBA
PRAC Commission Review and Adopts
Recommendations
TBA
Notice of Intent to Award TBA
Awards Disbursed TBA
Grant Activity Period TBA
For a copy of the guidelines in Spanish, contact the Fresno Arts Council at 559-237-9734
Para obtener una copia de las pautas en español, llame a Fresno Arts Council (el
Consejo de las Artes de Fresno) al 559.237.9734.
For a copy of the guidelines in Hmong, contact the Fresno Arts Council at 559-237-9734.
Hu rau lub Fresno Art Council ntawn 559-237-9734 yog tias koj xav tau ib daim ntawv
luam u alus Hmoob txog peb cov lus coj qhia.
For a copy of guidelines in Punjabi contact the Fresno Arts Council at 559-237-9734
ਪੰ ਜਾਬੀ ਿਵਚ ਿਵਸਾ-ਿਵਿਰੇਸ਼ਾਂ ਿ◌◌ੀ ਕਾਪੀ ਲਈ ਫਵਰਿਜ਼ੋ ਆਰਟਸ ਕੌਂ ਸਲ ਿ◌◌ੰ 559-237-9734 'ਤੇ ਸੰ ਪਰਕ ਕਰੋ
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Guidelines, 2025
2
Fresno Arts Council Information
Who We Are
The Fresno Arts Council (FAC) is the state-local partner to the California Arts Council,
designated by Resolution of the County Board of Supervisors to serve as the County’s arts
agency. It is designated as the City of Fresno’s arts agency by Memorandum of
Understanding. As the local arts agency, the FAC provides financial support, services, and
other programs to a variety of cultural arts organizations, individual artists, and diverse
communities throughout Fresno County.
Our mission is to enrich people’s lives through the arts, and our purpose is to foster an arts
community that recognizes and honors the contributions of its citizens to the arts. We are
managed by a volunteer board of directors, and our agency solicits financial support from
foundations, membership dues, government and corporate funders, as well as private
donors.
The Fresno Arts Council (FAC) will award grants generated by the Measure P sales tax to
nonprofit community-based organizations for the purpose of increasing access to the Arts
in the City of Fresno.
Contact Information:
Please direct questions regarding Operating Grant Guidelines to Lilia Gonzáles Chávez,
Executive Director, at lilia@fresnoartscouncil.org.
Cultural Arts Grant Overview
Measure P
In 2018, City of Fresno residents voted to approve Measure P, also known as the FRESNO
CLEAN AND SAFE NEIGHBORHOOD PARKS TRANSACTIONS AND USE TAX, a three-eighths
(.0375) percent sales tax ordinance, dedicated to improving parks, arts, and recreation
facilities, services, and access in the City of Fresno. Funds collected by the sales tax can
be used for purposes including, but not limited to, clean and safe parks; new parks and
recreation facilities; youth and senior recreation and after-school facilities and job
training; improved walking and biking trails; the San Joaquin River Parkway; beautification
of streets; and expanded access to arts and culture. Measure P is a renewable thirty-year
initiative implemented by the City of Fresno with oversight by the Parks, Recreation, and
Arts Commission (PRAC), a nine member committee established by the ordinance, with
Mayoral appointments.
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Twelve percent (12%) of funds collected by the sales tax are designated for improving
access to arts and culture via competitive grants for cultural arts nonprofit organizations
within City limits. This process is discussed in category 4 of the ordinance.
Fresno Municipal Code Section 7-1506(b)(4) Expanded Access to Arts
and Culture.
(A) Twelve percent (12%) percent of the funds made available from Section 7-1504 shall be
made available on an annual basis to invest in competitive grants for nonprofit
organizations that support and expand access to arts and cultural programming.
(B) Grants funded pursuant to this paragraph shall be implemented by the Commission in
partnership with the Fresno Arts Council, or its successor local arts agency, using multiple
solicitations that allow for a diverse set of programs, with different program sizes and
reach, including core operating and project-support grants, to be funded. The Commission
shall ensure that grant applications are reviewed in a transparent, competitive process.
(C) Prior to the implementation of subparagraph (B), the Commission shall work in
partnership with the Fresno Arts Council, and local arts and cultural stakeholders, to
develop a Cultural Arts Plan for the City of Fresno that would identify needs in the arts and
cultural community; prioritize outcomes and investments; and develop a vision and goals
for the future of Fresno arts and cultural programs that are reflective of the cultural,
demographic, and geographic diversity of Fresno. This process shall include a robust
community engagement process, including multiple public meetings. The Cultural Arts
Plan shall be updated every five years by the Commission.
(D) Funding for operating support distributed pursuant to this paragraph shall support
organizational stability for arts and cultural organizations that reflect the cultural,
geographic and demographic diversity of the City of Fresno; and reflect the proportion of
each grantee's overall operations that serves residents within, or visitors to, the City of
Fresno sphere of influence.
(E) Grants funded pursuant to subparagraph (B) shall prioritize organizations and programs
that support and expand diverse public or youth engagement and equity.
Cultural Arts Plan
Fresno’s Cultural Arts Plan was developed through a year-long process involving robust
community participation. A partnership between a consultant group, Network for Culture
and Arts Policy (NCAP), the City of Fresno PARCS Department, Fresno Arts Council, and the
Parks, Recreation and Arts Commission (PRAC), with multiple opportunities for public
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surveys, meetings, and draft comments, individual interviews with community arts
stakeholders, and research into Fresno’s cultural arts assets and needs, ultimately led to
the approval and adoption of Fresno’s Cultural Arts Plan, which must be reassessed and
updated every five years, according to requirements set forth in the ordinance. The Cultural
Arts Plan was adopted by the Fresno City Council on August 10, 2023.
Fresno’s Cultural Arts Plan identifies the following goals, with associated strategies, in
addition to defining funding priorities. These goals and funding priorities informed the
development of Cultural Arts Grant Programs, managed by the Fresno Arts Council with
stakeholder input and PRAC involvement and oversight.
Cultural Arts Plan Vision
Cultural arts in Fresno will be recognized, prioritized, inclusive, accessible, and continue to
reflect, celebrate, and connect the community.
Goals and Outcomes
(see Cultural Plan at https://www.fresnoartscouncil.org/fresnos-cultural-arts-plan for
recommendations, strategies, and funding priorities):
I. GRANT-MAKING & COMMUNITY ENGAGEMENT
Desired Outcome: Establish a strong foundation to support and expand access to
arts and culture through grant-making and community engagement.
II. STABILIZE, RESTORE & ACTIVATE
Desired Outcome: Cultural arts organizations and assets will be stabilized, restored
and activated to expand access to arts and culture.
III. EDUCATION & ORGANIZATIONAL DEVELOPMENT
Desired Outcome: Expand access to a variety of arts and cultural education
programs to provide educational opportunities for people of all ages.
Desired Outcome: Equip artists, cultural practitioners and organizations with the
skills and organizational resources to stabilize and expand operations.
IV. CELEBRATE & ENHANCE
Desired Outcome: Elevate and celebrate arts and culture to strengthen a sense of
community.
V. ADDRESS BARRIERS, INNOVATE & EXPAND
Desired Outcome: Expand access to arts and culture by eliminating barriers and
investing in innovation.
VI. MUNICIPAL INVESTMENTS & POLICIES TO SUPPORT CULTURAL ARTS
Desired Outcome: Establish a strong foundation to support and expand access to
arts and culture through policy planning and municipal investment.
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Expanded Access to Arts and Culture Funding Allocations A
Funding Distribution is contingent on availability of funds and number of applications
received in each category. The tentative distribution follows:
• 40% of available funds will be distributed for Established Organization General
Operating Support grants
• 40% of available funds will be distributed for Established Organization Project
Specific grants
• 10% of available funds will be distributed for Emerging Organization General
Operating Support grants
• 10% of available funds will be distributed for Emerging Organization Project Specific
grants
• General Operating Support Grants will not exceed $50,000 for Emerging
Organizations and $300,000 for Established Organizations
• Project Specific grants will not exceed $50,000 for Emerging Organizations and
$150,000 for Established Organizations
• An organization or fiscally sponsored entity can only apply for one project grant
• Emerging Applicants applying under their own 501(c)3 can apply for both General
Operating Grants and Project Specific grants
locations will be recommended by the Commission with the goal to ensure that awards are
reflective of the cultural, demographic and geographic diversity of Fresno.
Emerging Organization Project Specific Support
Application Guidelines
Deadline: TBA
Grant Awards: Up to $50,000
Grant Activity Period: TBA
Eligibility for Funding
Project Specific Grants will be made to support specific projects that respond to the goals
of the Cultural Plan. Project Specific Grants can be used to pay artists’ fees, acquire
project-specific supplies and materials, or acquire equipment required to complete the
project; venue, and technical costs are additional examples of allowable expenses.
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Grants shall prioritize organizations and programs that support and expand diverse public
or youth engagement and equity.
*Note: Future Grant Programs informed by the Cultural Arts Plan and future CAP revisions
may be developed. Guidelines will be posted as new funding programs are offered. Please
visit fresnoartscouncil.org for updates and information.
Eligibility: Who Can Apply for Emerging Organization Project Specific Support?
Emerging Organizations can apply ONLY in the Emerging category
Emerging Organizations applying under their own 501(c)3 can apply for both General
Operating Support Grants and Project Specific Grants
Eligible Organizations
• Organizations with an annual budget less than $50,000, as presented to the IRS in
their 990 or in their most recent board-approved Balance Sheet and Statement of
Activities
• Organizations with a budget of less than $50,000 who are applying under a Fiscal
Sponsor
• A collective of individual artists applying under a Fiscal Sponsor
• First time EAAC applicants with a budget greater than $50,000 who have fewer than
two years of consecutive arts and culture programming
• Organizations with active status who are in good standing with the Office of Attorney
General, California Secretary of State (SOS), and Internal Revenue Service (IRS
Charities) at the time of signing the Service Agreement.
Eligibility: Who Can’t Apply for Emerging Organization Project Specific
Support?
Ineligible Organizations
• Organizations without a principal place of business in the City of Fresno. P.O. Boxes
will not be accepted as official business address.
• Organizations with an annual budget of greater than $50,000
• Fiscally sponsored organizations, collectives, and individuals with an annual
budget of more than $50,000
• Organizations whose primary mission is to raise funds
• Organizations whose primary function is regranting
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• K-12 Schools; County Offices of Education; Public and Private Colleges and
Universities
• Government agencies that receive funding from the City of Fresno Budget.
• Organizations that do not serve the public and/or provide public programing.
• Organizations that are not in good standing with the Office of Attorney General,
California Secretary of State (SOS), Internal Revenue Service (IRS Charities)
• For-profit businesses or sole proprietorships
Fiscal Sponsors
A Fiscal Sponsor is a nonprofit organization that provides fiduciary oversight, financial
management, and other administrative services to help build the capacity of charitable
projects.
• Fiscal Sponsors can apply for their own grant and can also apply on behalf of
multiple different projects with different applicant organizations
• A Fiscal Sponsor must demonstrate that arts and /or culture work of the sponsored
project is consistent with/in furtherance off the sponsoring organization’s non-
profit purpose.
• A Fiscal Sponsor must be in good standing with the IRS, the CA Secretary of State,
and the CA Office of the Attorney General
Note: any applicant organization, Established or Emerging, using a Fiscal Sponsor, is eligible
to apply ONLY for Project Specific grants, not for Operating Support
Funding Amount: Emerging Organizations can request up to $50,000
Funding Use: You can use the grant money for these things as they are
directly related to the project:
An Emerging Organization Project Specific Support grant budget is required for this
application. Examples of eligible expenses for this funding include, but are not limited to:
• Venue rental
• Equipment rental or purchase directly related to the project
• Artist or consultant fees
• Personnel: staff time directly related to the project
• Materials and Supplies
• Marketing, printing, and publishing
• Cultural Arts Instructional programs and activities
• Meeting expenses
• Research and evaluation
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• Participant stipend
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Overhead costs are fixed at 10%. The Overhead Costs refers to any expenses that are
required to run the program that are not covered in the direct costs. The industry standard
is typically calculated at 10%. In the budget template, please include overhead calculated
at 10% of the total project budget.
Funding Use: You can’t use the grant money for these things:
• Activities occurring outside of the City of Fresno
• General Operating Expenses (rent, salaries and expenses not directly related to the
proposed project)
• Capital improvement projects/expenditures
• Fundraising
• Hospitality costs, including food and beverages
• Political Advocacy or lobbying
• Projects in schools during school hours
• Projects on university campuses that are primarily for enrolled students
• Projects with religious or evangelical purposes
• Cash prizes or scholarships
• Costs of goods for resale
Funding Restrictions:
• Matching funds are not required.
• Applicants must apply for the funding category that applies to their organization.
Applicants may be directed to the appropriate category upon submission of Letter
of Intent
• Emerging organizations with an Arts and Culture NTEE designation or any other
State or Federal designation that shows the purpose of the organization is arts
and cultural programing may apply for both General Operating Support and
Project Specific Support.
• Organization must provide a discounted admission to residents of the City of Fresno
for any ticketed events or general admission to venues
• All activities funded with EAAC funds must take place in the City of Fresno, including
rehearsals, performances, and presentations.
• The organization must operate and offer its programs in a nondiscriminatory manner
and in compliance with all applicable laws, including, without limitation, laws
protecting persons with disabilities.
• All Project Specific Grants must align with the goals and outcomes of the Cultural
Arts Plan adopted by the Fresno City Council.
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• A permanent installation of public art and public performances supported with
Measure P funds must be in the City of Fresno.
• New works or installations created with Measure P funds must remain the sole
property of a City of Fresno organization.
• Projects proposing Art Therapy must be offered by Licensed Art Therapists.
Therapist’s bio and License Number must be included with the application
• All artists named in project applications must provide a letter stating that they are
available and willing to participate, and that a fee has been agreed upon.
• For any projects that will be permanently installed in a public or private space, a
maintenance plan will be required. Grant applicants are advised to consider and
adhere to site control requirements for both public and private facilities not under
their ownership and obtain preliminary approval or permits from the City of Fresno
for projects or programs conducted within the City of Fresno’s Right of Way.
Application Process
Grant Application Materials
All application materials must be submitted electronically by the deadline. The “Expanded
Access to Arts and Culture” Emerging Organization Project Specific Support grant
application consists of the following components:
• Letter of Intent (deadline TBA). Following eligibility review, applicants will be sent a
direct link to Emerging Organization Project Specific Support application
• Narrative questions (see Appendix)
• Emerging Organization Project Specific Support budget form and budget notes
• Work samples and support materials
• Applicant’s most recent board-approved financial statements—Balance Sheet and
Statement of Activities
Grants Management System
All application materials must be submitted electronically using Fresno Arts Council’s
grants management system, Submittable. Paper or physical applications are not accepted
at this time. Technical assistance for creating a Submittable account is available through
Submittable’s Customer Support (https://www.submittable.com/help/submitter/).
*Note: all communications regarding Expanded Access to Arts and Culture Fund
grants will come through Submittable ONLY to the email address of the person who
submitted the application. Notifications will be sent from email addresses ending in
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@fresnoartscouncil.org or @email.submittable.com—please make sure to add these
domain addresses to your safe senders list to avoid notifications being sent to your spam
or junk folder.
For questions, please contact Fresno Arts Council at 559-237-9734 or
lilia@fresnoartscouncil.org.
Fresno Arts Council encourages you to attend webinars, office hours, and make use of
instructional resources early in your application process. FAC strongly recommends
submitting the application and required supporting materials at least five (5) business days
before the deadline to provide time to troubleshoot any technical issues. The deadline to
submit the online grant applications will be TBA.
Technical Assistance
Technical assistance for grant program-specific inquiries is available from Fresno Arts
Council staff by email, phone, or virtual appointment. Technical assistance can provide
guidance around eligibility, application requirements, or review criteria.
Application resources will be available on Fresno Arts Council’s website at
https://www.fresnoartscouncil.org/artsandculturegrants
Email support: for technical assistance and grant guidelines questions, please call 559-
237-9734 Monday through Friday, between the hours of 9:00 am and 3:00 pm. You may
also email Executive Director, Lilia Gonzáles Chávez at lilia@fresnoartscouncil.org. Please
allow 24-48 hours for staff response.
Accommodations for Disabilities
Individuals with disabilities who need reasonable accommodations to apply should make
their requests to Fresno Arts Council staff at least 72 hours in advance of deadlines or
meetings. Please email lilia@fresnoartscouncil.org or call 559-237-9734 for
accommodations requests.
Translation Services
Grant guidelines are available in English, Hmong, Spanish, and Punjabi. Requests can be
emailed to lilia@fresnoartscouncil.org. If the application is submitted in a language other
than English, a third-party translation service will be used to translate application answers
into English for Grant Review Panelists.
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Evaluation and Scoring
Grant review panelists use the following scale to assess how well the application meets the
review criteria.
Adjudication of applications determined holistically, based on the narrative questions
included in the Appendix.
Score Rank Rank Description
6 Exemplary Overwhelmingly achieves the purpose of the program. Meets all the review criteria
and project requirements to the highest degree
5 Strong Strongly achieves the purpose of the program. Meets all the review criteria and
project requirements to a significant degree
4 Good Sufficiently achieves the purpose of the program. Meets all the review criteria and
project requirements to some degree
3 Fair Moderately achieves the purpose of the program. Meets most of the review
criteria and project requirements
2 Marginal Minimally achieves the purpose of the program. Meets some of the review criteria
and project requirements
1 Weak Does not achieve the purpose of the program; proposals that are not appropriate
for this grant category. Inadequately meets the review criteria or project
requirement
Letter of Intent Eligibility Review
Once the Letter of Intent (LOI) submission window closes, Fresno Arts Council staff will
review submissions for eligibility and completeness. Letters of Intent that pass this initial
review will then be sent a direct link to the Grant Application.
Emerging Organization Project Specific Support Grant Review Panel
An adjudication panel made up of community members, representative of the cultural,
demographic and geographic diversity of Fresno will be assembled. They may include
artists and culture bearers, and Non-Profit administrators. The Commission and Fresno
Arts Council shall ensure that grant applications are reviewed in a transparent, competitive
process.
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A call for panelists will go out at the same time as the Request for Proposal. A list of eligible
panelists will be submitted to the PRAC prior to the start of the adjudication process.
Panelists will be required to declare any possible conflict of interest at the time of
application. Declaration of Conflict-of-Interest form is included in the resources linked at
the end of this document. Panelists may not be on the board of staff of any applicant for
that grant cycle, nor related by blood or marriage to any applicant in that grant cycle.
Applicants may request their panel comments after they receive official notice of intent to
award.
Approval Process
After the Grant Review Panel meets to review all applications, Fresno Arts Council will
develop funding recommendations for PRAC’s approval. FAC ensures proposed grant awards are
aligned with granting policies and guidelines before publishing an intent to award notice. Any
applications within the City of Fresno right of way shall not be recommended for award without prior
written approval to proceed from the City of Fresno.
Note: This is a competitive program. An application may or may not be funded depending
on the number of applications, the amount of award money available, and the application’s
score based on the evaluation criteria. The eligibility of an application does not imply that it
will be automatically funded. All applicants will be notified prior to the beginning of the
funding cycle about the results of the application.
Appeal Process
Appeals Process
Any applicant not recommended to receive an award, may submit a written appeal to
Fresno Arts Council staff (we will provide the link) no later than 5:00 p.m. by the tenth
(10th) calendar day following the release of notification of Intent to Award letter.
Incomplete applications are not eligible for the appeals process. Denial of applicant’s
Letter of Intent, shall be eligible for appeal.
The letter of appeal must state:
1. The grounds on which you believe your application was not properly dealt with or
assessed;
2. Specific reasons or evidence you may have to support your appeal.
Once the appeal is received by the FAC, Staff will present it to the PRAC Subcommittee for review and
recommendation to the PRAC. The PRAC will make the final ruling.
Note: Upon request from an applicant, FAC staff will provide written comments submitted by the
evaluation panels, to help the applicant understand their score.
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Grantee requirements and Policies
Grantee Orientation and Award Disbursement
All grantees are required to attend an Expanded Access to Arts and Culture Fund grantee
orientation, submit a Scope of Work and revised budget, and complete a grant agreement
before receiving award.
90% of grant funds will be awarded at the beginning of the grants cycle with the remaining
10% awarded when final reports are submitted.
Required Standards of Practice
• Certificate of Insurance
• Workers’ Compensation
• The applicant organization must have a functioning Board of Directors that meets
regularly.
• Organization must provide a discounted admission to residents of the City of Fresno
for any ticketed events or general admission to venues
• The organization must operate and offer its programs in a nondiscriminatory manner
and in compliance with all applicable laws, including, without limitation, laws
protecting persons with disabilities.
• The organization must have active status and be in good standing with the Office of
Attorney General, California Secretary of State (SOS), Internal Revenue Service (IRS
Charities) at the time of signing the Service Agreement.
• Grantee Agreement: Vendors/Background Checks/Project Amendments/Legal
Requirements/Conflict of Interest/Incomplete Projects (see Grantee Requirement
Links)
Permits and Permissions
It is the responsibility of the grantee to secure venues, appropriate permits, and insurance
for public presentations. The grantee is solely responsible for securing the necessary City,
County, or community permits or approvals for project elements such as publicly installed
art, street closures, sound amplification in public space, or murals. Planning for this should
be reflected in the application narrative. The grantee shall be responsible for maintenance of
the project.
Quarterly Reporting
EAAC grantees will be required to submit quarterly reports including progress toward
achieving Scope of Services included in grantee agreement and program participant data
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as required by the City of Fresno
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Data
At a minimum, data collection shall include:
a. Attendance data:
i. Number of youth participants served. Youth shall be defined as age seventeen
(17) and younger
ii. Number of adult participants served. Adult shall be defined as ages eighteen
(18) through sixty-one (61)
iii. Number of senior participants served. Senior shall be defined as age sixty-two
(62) and older
b. Participant zip code data to identify the number and percentage of Fresno County
residents served
c. Race, ethnicity, household income and gender identity
d. For murals only: total square feet installed and location/address
e. Photos and/or videos highlighting grant funded projects, events, programs, etc.
Acknowledging Fresno Arts Council Support
Per the terms of the Grantee Agreement, grantees must acknowledge the support of the
Measure P, Parks and Arts Ordinance and Fresno Arts Council to demonstrate how City
funds support arts and culture. Recipients receiving funds must use the required logos
and credit line on all printed and electronic materials that advertise performances,
exhibitions, or other public events throughout their work or, for those receiving
operating support, throughout the grant period. The credit line is below. Logos will be
provided to all grantees upon signed grant agreement. Failure to comply may result in
termination of grant agreement.
“[Organization or project name] is funded in part by the City of Fresno Measure P
Expanded Access to Arts and Culture Fund administered by the Fresno Arts Council.”
Cultural Arts Calendars
Grantees must submit programming information and flyers to be included in the Cultural
Arts Calendar. Details will be provided to grantees.
Policies to be inserted in Appendix once adopted.
Measure P Ordinance
Cultural Arts Plan
Eligibility Checklist/Definitions
Letter of Intent Guidelines
Technical Assistance/Workshop Schedule
Frequently Asked Questions
Fiscal Sponsorship Resources: https://www.councilofnonprofits.org/running-
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nonprofit/administration-and-financial-management/fiscal-sponsorship-nonprofits and
https://fiscalsponsorship.com/fiscal-sponsorship-quick-start-basics/
Grantee Requirement Links
Legal Requirements:
Insurance/endorsements
Conflict of Interest disclosure statement
Monitoring, Evaluation and Reporting Requirements
Subcontracts
Acknowledgement, Copyright, Indemnification and Cultural Arts Calendar
Background Check/Mandated Reporter, etc.
SOW, Amendments and Extensions
Payment and Reporting Schedules
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Appendix: Emerging Organization Project Specific Support Grant
Narrative Questions
Project Statement
Prepare a Project Statement with 150 words or fewer that describes what you will do with
funds if awarded. Must include project title, activity, location(s) where activity will take
place, age of population to be served, projected number of people to be served, and
desired impact.
Begin Project Statement by saying: “With support from an Expanded Access to Arts and
Culture grant, [your organization] will…”
These statements may be used to report to the City of Fresno and/or be included in public
documents and press information.
Organization Mission/Purpose
What is your organization’s mission? Please provide a brief description of your
organization’s core programming, services, and/or work you do in the community.
1)Project Details
A.Describe the project’s activities.
B.Who is/are your target audience(s), and how will you engage them? (age, ethnicity,
income level, geography, etc.)?
C.What part of the city do you serve? Identify the primary zip codes where you provide
services.
D.Describe key project staff, exhibitors/presenters, artists, and other collaborators. In
what ways will your support diverse personnel, artists, and/or cultural workers?
E.What are the goals and outcomes of this project? How will you measure and
evaluate outcomes and impact? In what ways will your project engage institutionally
and/or geographically underserved communities, neighborhoods, and individuals?
In what ways will your project increase access and exposure to, and participation
within, arts and culture?
F.Provide a timeline for your project
2)Cultural Plan
A.How does your work align with the Cultural Plan?
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B. Identify the Cultural Plan goals that align most closely with your organization and
explain how your work contributes to those goals.
C. Identify and describe the ways in which your work addresses Cultural Plan specific
recommendations and strategies
3) Budget
A. How does your organization intend to make use of Project Specific Support funds if
awarded?
B. Budget Spreadsheet
C. Budget Notes
Application Materials
Budget
Please complete a project budget using the template provided in the direct application link
provided to you
Work Samples
Please upload a minimum of two work samples (maximum six) demonstrating your
organization’s recent arts and culture programming.
You are required to submit at least two work samples that exemplify the cultural and/or
artistic programs or events presented by your organization. This may include video or audio
recordings, or digital images of performances, exhibitions, or events. Select the type of
work sample that is most relevant to your organization.
Supporting Material
You may upload or provide links for up to three supporting documents from the past five
years that demonstrate the impact of your programs on viewers/participants. Examples
include: letters of support, participant testimonials, reviews, audience surveys, social
media posts.
This section is OPTIONAL; however, you are strongly encouraged to submit at least one
document. These documents help reviewers understand the impact of your programs on
participants and audience members. Note: You may upload a document or provide links.
You may provide a title and brief description for necessary context. 3 documents or links
maximum.
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Supporting Material: Financial Statements
Please upload your organization’s most recent board-approved Balance Sheet and
Statement of Activities
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Expanded Access to Arts and Culture Fund
Established Organization Project Specific Support Guidelines
Funded by Measure P
Administered by Fresno Arts Council in partnership with the City of Fresno Parks,
Recreation, and Arts Commission (PRAC)
Letter of Intent Submission Deadline: TBA
EAAC Project Specific Support Application Deadline: TBA
Important Dates (subject to change)
Letter of Intent Submissions Open TBA
Letter of Intent Deadline TBA
EAAC Project Specific Support Applications
Open
TBA
EAAC Project Specific Support Applications
Deadline
TBA
Grant Panel Review TBA
PRAC Commission Review and Adopts
Recommendations
TBA
Notice of Intent to Award TBA
Awards Disbursed TBA
Grant Activity Period TBA
For a copy of the guidelines in Spanish, contact the Fresno Arts Council at 559-237-9734
Para obtener una copia de las pautas en español, llame a Fresno Arts Council (el
Consejo de las Artes de Fresno) al 559.237.9734.
For a copy of the guidelines in Hmong, contact the Fresno Arts Council at 559-237-9734.
Hu rau lub Fresno Art Council ntawn 559-237-9734 yog tias koj xav tau ib daim ntawv
luam u alus Hmoob txog peb cov lus coj qhia.
For a copy of guidelines in Punjabi contact the Fresno Arts Council at 559-237-9734
ਪੰ ਜਾਬੀ ਿਵਚ ਿਦਸ਼ਾ-ਿਨਰਦੇਸ਼� ਦੀ ਕਾਪੀ ਲਈ ਫ ਿ ਰ ਜ਼ ਨ� ਆਰਟਸ ਕ�ਸਲ ਨ ੂੰ 559-237-9734 'ਤੇ ਸੰ ਪਰਕ ਕਰੋ
Established Organization Project Specific Support
Guidelines, 2025
2
Fresno Arts Council Information
Who We Are
The Fresno Arts Council (FAC) is the state-local partner to the California Arts Council,
designated by Resolution of the County Board of Supervisors to serve as the County’s arts
agency. It is designated as the City of Fresno’s arts agency by Memorandum of
Understanding. As the local arts agency, the FAC provides financial support, services, and
other programs to a variety of cultural arts organizations, individual artists, and diverse
communities throughout Fresno County.
Our mission is to enrich people’s lives through the arts, and our purpose is to foster an arts
community that recognizes and honors the contributions of its citizens to the arts. We are
managed by a volunteer board of directors, and our agency solicits financial support from
foundations, membership dues, government and corporate funders, as well as private
donors.
The Fresno Arts Council (FAC) will award grants generated by the Measure P sales tax to
nonprofit community-based organizations for the purpose of increasing access to the Arts
in the City of Fresno.
Contact Information:
Please direct questions regarding Operating Grant Guidelines to Lilia Gonzáles Chávez,
Executive Director, at lilia@fresnoartscouncil.org.
Cultural Arts Grant Overview
Measure P
In 2018, City of Fresno residents voted to approve Measure P, also known as the FRESNO
CLEAN AND SAFE NEIGHBORHOOD PARKS TRANSACTIONS AND USE TAX, a three-eighths
(.0375) percent sales tax ordinance, dedicated to improving parks, arts, and recreation
facilities, services, and access in the City of Fresno. Funds collected by the sales tax can
be used for purposes including, but not limited to, clean and safe parks; new parks and
recreation facilities; youth and senior recreation and after-school facilities and job
training; improved walking and biking trails; the San Joaquin River Parkway; beautification
of streets; and expanded access to arts and culture. Measure P is a renewable thirty-year
initiative implemented by the City of Fresno with oversight by the Parks, Recreation, and
Arts Commission (PRAC), a nine member committee established by the ordinance, with
Mayoral appointments.
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Twelve percent (12%) of funds collected by the sales tax are designated for improving
access to arts and culture via competitive grants for cultural arts nonprofit organizations
within City limits. This process is discussed in category 4 of the ordinance.
Fresno Municipal Code Section 7-1506(b)(4) Expanded Access to Arts
and Culture.
(A) Twelve percent (12%) percent of the funds made available from Section 7-1504 shall be
made available on an annual basis to invest in competitive grants for nonprofit
organizations that support and expand access to arts and cultural programming.
(B) Grants funded pursuant to this paragraph shall be implemented by the Commission in
partnership with the Fresno Arts Council, or its successor local arts agency, using multiple
solicitations that allow for a diverse set of programs, with different program sizes and
reach, including core operating and project-support grants, to be funded. The Commission
shall ensure that grant applications are reviewed in a transparent, competitive process.
(C) Prior to the implementation of subparagraph (B), the Commission shall work in
partnership with the Fresno Arts Council, and local arts and cultural stakeholders, to
develop a Cultural Arts Plan for the City of Fresno that would identify needs in the arts and
cultural community; prioritize outcomes and investments; and develop a vision and goals
for the future of Fresno arts and cultural programs that are reflective of the cultural,
demographic, and geographic diversity of Fresno. This process shall include a robust
community engagement process, including multiple public meetings. The Cultural Arts
Plan shall be updated every five years by the Commission.
(D) Funding for operating support distributed pursuant to this paragraph shall support
organizational stability for arts and cultural organizations that reflect the cultural,
geographic and demographic diversity of the City of Fresno; and reflect the proportion of
each grantee's overall operations that serves residents within, or visitors to, the City of
Fresno sphere of influence.
(E) Grants funded pursuant to subparagraph (B) shall prioritize organizations and programs
that support and expand diverse public or youth engagement and equity.
Cultural Arts Plan
Fresno’s Cultural Arts Plan was developed through a year-long process involving robust
community participation. A partnership between a consultant group, Network for Culture
and Arts Policy (NCAP), the City of Fresno PARCS Department, Fresno Arts Council, and the
Parks, Recreation and Arts Commission (PRAC), with multiple opportunities for public
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surveys, meetings, and draft comments, individual interviews with community arts
stakeholders, and research into Fresno’s cultural arts assets and needs, ultimately led to
the approval and adoption of Fresno’s Cultural Arts Plan, which must be reassessed and
updated every five years, according to requirements set forth in the ordinance. The Cultural
Arts Plan was adopted by the Fresno City Council on August 10, 2023.
Fresno’s Cultural Arts Plan identifies the following goals, with associated strategies, in
addition to defining funding priorities. These goals and funding priorities informed the
development of Cultural Arts Grant Programs, managed by the Fresno Arts Council with
stakeholder input and PRAC involvement and oversight.
Cultural Arts Plan Vision
Cultural arts in Fresno will be recognized, prioritized, inclusive, accessible, and continue to
reflect, celebrate, and connect the community.
Goals and Outcomes
(see Cultural Plan at https://www.fresnoartscouncil.org/fresnos-cultural-arts-plan for
recommendations, strategies, and funding priorities):
I. GRANT-MAKING & COMMUNITY ENGAGEMENT
Desired Outcome: Establish a strong foundation to support and expand access to
arts and culture through grant-making and community engagement.
II. STABILIZE, RESTORE & ACTIVATE
Desired Outcome: Cultural arts organizations and assets will be stabilized, restored
and activated to expand access to arts and culture.
III. EDUCATION & ORGANIZATIONAL DEVELOPMENT
Desired Outcome: Expand access to a variety of arts and cultural education
programs to provide educational opportunities for people of all ages.
Desired Outcome: Equip artists, cultural practitioners and organizations with the
skills and organizational resources to stabilize and expand operations.
IV. CELEBRATE & ENHANCE
Desired Outcome: Elevate and celebrate arts and culture to strengthen a sense of
community.
V. ADDRESS BARRIERS, INNOVATE & EXPAND
Desired Outcome: Expand access to arts and culture by eliminating barriers and
investing in innovation.
VI. MUNICIPAL INVESTMENTS & POLICIES TO SUPPORT CULTURAL ARTS
Desired Outcome: Establish a strong foundation to support and expand access to
arts and culture through policy planning and municipal investment.
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Expanded Access to Arts and Culture Funding Allocations
Funding Distribution is contingent on availability of funds and number of applications
received in each category. The tentative distribution follows:
• 40% of available funds will be distributed for Established Organization General
Operating Support grants
• 40% of available funds will be distributed for Established Organization Project
Specific grants
• 10% of available funds will be distributed for Emerging Organization General
Operating Support grants
• 10% of available funds will be distributed for Emerging Organization Project Specific
grants
• General Operating Support Grants will not exceed $50,000 for Emerging
Organizations and $300,000 for Established Organizations
• Project Specific grants will not exceed $50,000 for Emerging Organizations and
$150,000 for Established Organizations
• An organization or fiscally sponsored entity can only apply for one project grant
Established Organization Project Specific Support
Application Guidelines
Deadline: TBA
Grant Awards: Up to $150,000
Grant Activity Period: TBA
Eligibility for Funding
Project Specific Grants will be made to support specific projects that respond to the goals
of the Cultural Plan. Project Specific Grants can be used to pay artists’ fees, acquire
project-specific supplies and materials, or acquire equipment required to complete the
project; venue, and technical costs are additional examples of allowable expenses.
Grants shall prioritize organizations and programs that support and expand diverse public
or youth engagement and equity.
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*Note: Future Grant Programs informed by the Cultural Arts Plan and future CAP revisions
may be developed. Guidelines will be posted as new funding programs are offered. Please
visit fresnoartscouncil.org for updates and information.
Eligibility: Who Can Apply for Established Organization Project Specific
Support?
Eligible Organizations
• Organizations with an annual budget greater than $50,000, as presented to the IRS
in their 990 or in their most recent board-approved Balance Sheet and Statement of
Activities
• Organizations that can demonstrate expanded access to arts and culture
programming.
• Previous EAAC grantee organizations who received funds in the emerging category
that now have an annual budget greater than $50,000, as presented to the IRS in
their 990 or in their most recent board-approved Balance Sheet and Statement of
Activities
• A Fiscally Sponsored project with a financial report on their own project, which
demonstrates a budget of over $50,000, provided by their Fiscal Sponsor, will be
eligible to apply in the Established Organization category for Project Specific grants,
but not for Operating Support.
• Organizations with active status who are in good standing with the Office of Attorney
General, California Secretary of State (SOS), and Internal Revenue Service (IRS
Charities) at the time of signing the Service Agreement.
Eligibility: Who CANNOT Apply for Established Organization Project Specific
Support?
Ineligible Organizations
• Organizations that do not have their principal place of business in the City of Fresno.
P.O. Boxes will not be accepted as official business address.
• Nonprofit Organizations with an annual budget of less than $50,000
• Fiscally sponsored organizations, collectives, and individuals with an annual
budget of less than $50,000
• Organizations whose primary mission is to raise funds
• Organizations whose primary function is regranting
• K-12 Schools; County Offices of Education; Public and Private Colleges and
Universities
• Government agencies that receive funding from the City of Fresno Budget.
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• Organizations that do not serve the public and/or provide public programing.
• Organizations that are not in good standing with the Office of Attorney General,
California Secretary of State (SOS), Internal Revenue Service (IRS Charities)
• For-profit businesses or sole proprietorships
Fiscal Sponsors
A Fiscal Sponsor is a nonprofit organization that provides fiduciary oversight, financial
management, and other administrative services to help build the capacity of charitable
projects.
• Fiscal Sponsors can apply for their own grant and can also apply on behalf of
multiple different projects with different applicant organizations
• A Fiscal Sponsor must demonstrate that arts and /or culture work of the sponsored
project is consistent with /in furtherance of the sponsoring organization’s non-profit
purpose.
• A Fiscal Sponsor must be in good standing with the IRS, the CA Secretary of State,
and the CA Office of the Attorney General
Note: any applicant organization, Established or Emerging, using a Fiscal Sponsor, is
eligible to apply ONLY for Project Specific grants, not for Operating Support
Funding Amount: Established Organizations can request up to $150,000
Funding Use: You can use the grant money for these things as they are
directly related to the project:
An Established Organization Project Specific Support grant budget is required for this
application. Examples of eligible expenses for this funding include, but are not limited to:
• Venue rental
• Equipment rental or purchase directly related to the project
• Artist or consultant fees
• Personnel: staff time directly related to the project
• Materials and Supplies
• Marketing, printing, and publishing
• Cultural arts instructional programs and activities
• Meeting expenses
• Research and evaluation
• Participant stipends
Overhead costs are fixed at 10%. The Overhead Costs refers to any expenses that are
required to run the program that are not covered in the direct costs. The industry standard
Established Organization Project Specific Support
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is typically calculated at 10%. In the budget template, please include overhead calculated
at 10% of the total project budget.
Funding Use: You can’t use the grant money for these things:
• Activities occurring outside of the City of Fresno
• General Operating Expenses (rent, salaries and expenses not directly related to the
proposed project)
• Capital improvement projects/expenditures
• Fundraising
• Hospitality costs, including food and beverages
• Political Advocacy or lobbying
• Projects in schools during school hours
• Projects on university campuses that are primarily for enrolled students
• Projects with religious or evangelical purposes
• Cash prizes or scholarships
• Costs of goods for resale
Funding Restrictions:
• Matching funds are not required.
• Applicants must apply for the funding category that applies to their organization.
Applicants may be directed to the appropriate category upon submission of Letter
of Intent
• Established Organizations can apply for either General Operating Support or one
Project Specific grant, but not both
• Organization must provide discounted admission to residents of the City of Fresno
for any ticketed events or general admission to venues
• All activities funded with EAAC funds must take place in the City of Fresno, including
rehearsals, performances, and presentations.
• The organization must operate and offer its programs in a nondiscriminatory manner
and in compliance with all applicable laws, including, without limitation, laws
protecting persons with disabilities.
• All Project Specific Grants must align with the goals and outcomes of the Cultural
Arts Plan adopted by the Fresno City Council.
• A permanent installation of public art and public performances supported with
Measure P funds must be in the City of Fresno.
• New works or installations created with Measure P funds must remain the sole
property of a City of Fresno organization.
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• Projects proposing Art Therapy must be offered by Licensed Art Therapists.
Therapist’s bio and License Number must be included with the application
• All artists named in project applications must provide a letter stating that they are
available and willing to participate, and that a fee has been agreed upon.
• For any projects that will be permanently installed in a public or private space, a
maintenance plan will be required. Grant applicants are advised to consider and
adhere to site control requirements for both public and private facilities not under
their ownership and obtain preliminary approval or permits from the City of Fresno
for projects or programs conducted within the City of Fresno’s Right of Way.
Application Process
Grant Application Materials
All application materials must be submitted electronically by the deadline. The “Expanded
Access to Arts and Culture” Established Organization Project Specific Support grant
application consists of the following components:
• Letter of Intent (deadline TBA). Following eligibility review, applicants will be sent a
direct link to Established Organization Project Specific Support application
• Narrative questions (see Appendix)
• Established Organization Project Specific Support budget form and budget notes
• Work samples and support materials
• Applicant’s most recent board-approved financial statements—Balance Sheet and
Statement of Activities
Grants Management System
All application materials must be submitted electronically using Fresno Arts Council’s
grants management system, Submittable. Paper or physical applications are not accepted
at this time. Technical assistance for creating a Submittable account is available through
Submittable’s Customer Support (https://www.submittable.com/help/submitter/).
*Note: all communications regarding Expanded Access to Arts and Culture Fund
grants will come through Submittable ONLY to the email address of the person who
submitted the application. Notifications will be sent from email addresses ending in
@fresnoartscouncil.org or @email.submittable.com—please make sure to add these
domain addresses to your safe senders list to avoid notifications being sent to your spam
or junk folder.
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For questions, please contact Fresno Arts Council at 559-237-9734 or
lilia@fresnoartscouncil.org.
Fresno Arts Council encourages you to attend webinars, office hours, and make use of
instructional resources early in your application process. FAC strongly recommends
submitting the application and required supporting materials at least five (5) business days
before the deadline to provide time to troubleshoot any technical issues. The deadline to
submit the online grant applications will be TBA .
Technical Assistance
Technical assistance for grant program-specific inquiries is available from Fresno Arts
Council staff by email, phone, or virtual appointment. Technical assistance can provide
guidance around eligibility, application requirements, or review criteria.
Application resources will be available on Fresno Arts Council’s website at
https://www.fresnoartscouncil.org/artsandculturegrants
Email support: for technical assistance and grant guidelines questions, please call 559-
237-9734 Monday through Friday, between the hours of 9:00am and 3:00pm. You may also
email Executive Director, Lilia Gonzáles Chávez at lilia@fresnoartscouncil.org. Please allow
24-48 hours for staff response.
Accommodations for Disabilities
Individuals with disabilities who need reasonable accommodations to apply should make
their requests to Fresno Arts Council staff at least 72 hours in advance of deadlines or
meetings. Please email lilia@fresnoartscouncil.org or call 559-237-9734 for
accommodations requests.
Translation Services
Grant guidelines are available in English, Hmong, Spanish, and Punjabi. Requests can be
emailed to lilia@fresnoartscouncil.org. If the application is submitted in a language other
than English, a third-party translation service will be used to translate application answers
into English for Grant Review Panelists.
Evaluation and Scoring
Grant review panelists use the following scale to assess how well the application meets the
review criteria.
Adjudication of applications is based on 7 weighted questions.
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1) Project Description 20%
2) Cultural Plan 20%
3) Organization Description 10%
4) Cultural equity and inclusion statements and policy 10%
5) Proposed Impact and Outcomes 15%
6) Governance and Administrative Structure 10%
7) Proposed Budget 15%
Score Rank Rank Description
6 Exemplary Overwhelmingly achieves the purpose of the program. Meets all the review criteria
and project requirements to the highest degree
5 Strong Strongly achieves the purpose of the program. Meets all the review criteria and
project requirements to a significant degree
4 Good Sufficiently achieves the purpose of the program. Meets all the review criteria and
project requirements to some degree
3 Fair Moderately achieves the purpose of the program. Meets most of the review
criteria and project requirements
2 Marginal Minimally achieves the purpose of the program. Meets some of the review criteria
and project requirements
1 Weak Does not achieve the purpose of the program; proposals that are not appropriate
for this grant category. Inadequately meets the review criteria or project
requirement
Letter of Intent Eligibility Review
Once the Letter of Intent (LOI) submission window closes, Fresno Arts Council staff will
review submissions for eligibility and completeness.
Established Organization Project Specific Support Grant Review Panel
An adjudication panel made up of community members, representative of the cultural,
demographic and geographic diversity of Fresno will be assembled. They may include
artists and culture bearers, and Non-Profit administrators. The Commission and Fresno Arts
Council shall ensure that grant applications are reviewed in a transparent, competitive process.
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A call for panelists will go out at the same time as the Request for Proposal. A list of eligible
panelists will be submitted to the PRAC prior to the start of the adjudication process.
Panelists will be required to declare any possible conflict of interest at the time of
application. Declaration of Conflict of Interest form is included in the resources linked at
the end of this document. Panelists may not be on the board or staff of any applicant for
that grant cycle, nor related by blood or marriage to any applicant in that grant cycle.
Applicants may request their panel comments after they receive official notice of intent to
award.
Approval Process
After the Grant Review Panel meets to review all applications, Fresno Arts Council will
develop funding recommendations for PRAC’s approval. FAC ensures proposed grant
awards are aligned with granting policies and guidelines before publishing an intent to
award notice. Any applications within the City of Fresno right of way shall not be
recommended for award without prior written approval to proceed from the City of Fresno.
Note: This is a competitive program. An application may or may not be funded depending
on the number of applications, the amount of award money available, and the application’s
score based on the evaluation criteria. The eligibility of an application does not imply that it
will be automatically funded. All applicants will be notified prior to the beginning of the
funding cycle about the results of the application.
Appeal Process
Appeals Process
Any applicant not recommended to receive an award may submit a written appeal to
Fresno Arts Council staff (we will provide the link) no later than 5:00 p.m. by the tenth
(10th) calendar day following the release of notification of Intent to Award letter.
Incomplete applications are not eligible for the appeals process. Denial of applicant’s
Letter of Intent, shall be eligible for appeal.
The letter of appeal must state:
1. The grounds on which you believe your application was not properly dealt with or
assessed;
2. Specific reasons or evidence you may have to support your appeal.
Once the appeal is received by the FAC, Staff will present it to the PRAC Subcommittee for
review and recommendation to the PRAC. The PRAC will make the final ruling.
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Note: Upon request from an applicant, FAC staff will provide written comments submitted by
the evaluation panels, to help the applicant understand their score.
Grantee requirements and Policies
Grantee Orientation and Award Disbursement
All grantees are required to attend an Expanded Access to Arts and Culture Fund grantee
orientation, submit a Scope of Work and revised budget, and complete a grant agreement
before receiving award.
90% of grant funds will be awarded at the beginning of the grants cycle with the remaining
10% awarded when final reports are submitted.
Required Standards of Practice
• Certificate of Insurance
• Workers’ Compensation
• The applicant organization must have a functioning Board of Directors that meets
regularly.
• Organization must provide discounted admission to residents of the city of Fresno
for any ticketed events or general admission to venues
• The organization must operate and offer its programs in a nondiscriminatory manner
and in compliance with all applicable laws, including, without limitation, laws
protecting persons with disabilities.
• The organization must have active status and be in good standing with the Office of
Attorney General, California Secretary of State (SOS), and Internal Revenue Service
(IRS Charities) at the time of signing the Service Agreement.
• Grantee Agreement: Vendors/Background Checks/Project Amendments/Legal
Requirements/Conflict of Interest/Incomplete Projects (see Grantee Requirement
Links)
Permits and Permissions
It is the responsibility of the grantee to secure venues, appropriate permits, and insurance
for public presentations. The grantee is solely responsible for securing the necessary City,
County, or community permits or approvals for project elements such as publicly installed
art, street closures, sound amplification in public space, or murals. Planning for this should
be reflected in the application narrative. The grantee shall be responsible for maintenance
of the project.
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Quarterly Reporting
EAAC grantees will be required to submit quarterly reports including progress toward
achieving Scope of Services included in grantee agreement and program participant data
as required by the City of Fresno.
Data
At a minimum, data collection shall include:
a. Attendance data:
i. Number of youth participants served. Youth shall be defined as age seventeen
(17) and younger
ii. Number of adult participants served. Adult shall be defined as ages eighteen
(18) through sixty-one (61)
iii. Number of senior participants served. Senior shall be defined as age sixty-two
(62) and older
b. Participant zip code data to identify the number and percentage of Fresno County
residents served
c. Race, ethnicity, household income and gender identity
d. For murals only: total square feet installed and location/address
e. Photos and/or videos highlighting grant funded projects, events, programs, etc.
Acknowledging Fresno Arts Council Support
Per the terms of the Grantee Agreement, grantees must acknowledge the support of the
Measure P, Parks and Arts ordinance and Fresno Arts Council to demonstrate how City
funds support arts and culture. Recipients receiving funds must use the required logos
and credit line on all printed and electronic materials that advertise performances,
exhibitions, or other public events throughout their work or, for those receiving
operating support, throughout the grant period. The credit line is below. Logos will be
provided to all grantees upon signed grant agreement. Failure to comply may result in
termination of grant agreement.
“[Organization or project name] is funded in part by the City of Fresno Measure P
Expanded Access to Arts and Culture Fund administered by the Fresno Arts Council.”
Cultural Arts Calendars
Grantees must submit programming information and flyers to be included in the Cultural
Arts Calendar. Details will be provided to grantees.
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Policies to be inserted in Appendix once adopted
Applicant Resources
Measure P Ordinance
Cultural Arts Plan
Eligibility Checklist
Letter of Intent Guidelines
Technical Assistance/Workshop Schedule
Frequently Asked Questions
Fiscal Sponsorship Resources: https://www.councilofnonprofits.org/running-
nonprofit/administration-and-financial-management/fiscal-sponsorship-nonprofits and
https://fiscalsponsorship.com/fiscal-sponsorship-quick-start-basics/
Grantee Requirement Links
Legal Requirements:
Insurance/endorsements
Conflict of Interest disclosure statement
Monitoring, Evaluation and Reporting Requirements
Subcontracts
Acknowledgement, Copyright, Indemnification and Cultural Arts Calendar
Background Check/Mandated Reporter, etc.
SOW, Amendments and Extensions
Payment and Reporting Schedules
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Appendix: Established Organization Project Specific Support Grant
Narrative Questions
Project Statement
Prepare a Project Statement with 150 words or fewer that describes what you will do with
funds if awarded. Must include project title, activity, location(s) where activity will take
place, age of population to be served, projected number of people to be served, and
desired impact.
Begin Project Statement by saying: “With support from an Expanded Access to Arts and
Culture grant, [your organization] will…”
These statements may be used to report to the City of Fresno and/or be included in public
documents and press information.
1)Project Description
A.Please describe your proposed project.
B.Who is the target audience anticipated for this project? (age, ethnicity, income level,
geography, etc.)
C.What part of the city do you serve? Identify the primary zip codes where you provide
services.
D.Describe key exhibitors/presenters, and other collaborators.
E.Identify how you include individual artists in your work.
F.Identify how many paid Fresno-based artists will benefit from this grant.
G.If artists are not Fresno-based, provide justification for how including non-Fresno-
based artists will benefit City of Fresno residents.
H.Provide a timeline for your project
2) Cultural Plan
A.How does your proposed project align with the Cultural Plan?
B.Identify the Cultural Plan goals that align most closely with your proposed project
and explain how this project contributes to those goals.
C.Identify and describe the ways in which your proposed project addresses Cultural
Plan specific recommendations and strategies
3)Organization Description
A.What is your organization’s mission? Please provide a brief description of your
organization’s core programming, services, and/or work you do in the community.
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B. What are the primary activities of the organization? Describe the major arts and
culture programs open to the public.
C. What work is the organization most proud of?
D. What do you identify as your greatest challenges? Describe how you will address
these challenges.
E. What do you perceive as barriers to your organization's increasing access to arts
and culture? Describe how EAAC grant funds would be used to reduce these
barriers.
F. List of arts and cultural activities for the past 2 years. (Title, Date, Description)
4) Cultural equity and inclusion statements and policy
A. Please include or describe your organization’s equity statement or other formalized
diversity, equity, and inclusion efforts.
B. What are the organizations perceived needs and or plans for increasing diversity in
board, staff, programming, and audiences over the next year?
C. What barriers, if any, are you removing to make that possible? (Barriers may include,
but are not limited to, physical ability, language, cultural norms, educational
background, and economic resources.).
5) Proposed Impact and Outcomes (organizational and community)
A. What outcome are you envisioning from this project?
B. How will your organization measure the impact of this award?
C. Do you have a regular process for evaluating the quality and success of your
projects? What community impact do you envision for this project?
D. How will you capture who participates?
E. How many youths will benefit from this project?
6) Governance and Administrative Structure
A. Describe your governance structure, including board meeting frequency, and board
committee structure. Include a board roster with members’ names, occupation if
known, and any other demographic information that you would like considered.
B. Describe your administrative structure, including administrative, program, or
cultural and/or artistic staff. List primary staff names, titles, and duties. Provide brief
bios for key staff and include years with the organization.
C. How do you engage in planning (i.e., who is involved in planning, how far in advance
do you plan your programming)? What are your organization’s overarching goals?
D. How are the board, staff, and programming reflective of Fresno’s citywide
demographics?
Established Organization Project Specific Support
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7) Budget
A. How does your organization intend to make use of Project Specific Support funds if
awarded?
B. Budget Spreadsheet
C. Budget Notes
Application Materials
Budget
Please complete a project budget using the template provided in the direct application link
provided to you
Work Samples
Please upload a minimum of two work samples (maximum six) demonstrating your
organization’s recent arts and culture programming.
You are required to submit at least two work samples that exemplify the cultural and/or
artistic programs or events presented by your organization. This may include video or audio
recordings, or digital images of performances, exhibitions, or events. Select the type of
work sample that is most relevant to your organization.
Supporting Material
You may upload or provide links for up to three supporting documents from the past five
years that demonstrate the impact of your programs on viewers/participants. Examples
include: letters of support, participant testimonials, reviews, audience surveys, social
media posts.
This section is OPTIONAL; however, you are strongly encouraged to submit at least one
document. These documents help reviewers understand the impact of your programs on
participants and audience members. Note: You may upload a document or provide links.
Yo u may provide a title and brief description for necessary context. 3 documents or links
maximum.
Supporting Material: Financial Statements
Please upload your organization’s most recent board-approved Balance Sheet and
Statement of Activities
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Note: Fiscally sponsored projects with budgets greater than $50,000 must submit most
recent board-approved Balance Sheet and Statement of Activities for your project provided
by the fiscal sponsor
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Expanded Access to Arts and Culture Fund
Emerging Organization General Operating Support Guidelines
Funded by Measure P
Administered by Fresno Arts Council in partnership with the City of Fresno Parks,
Recreation, and Arts Commission (PRAC)
Letter of Intent Application Deadline: TBA
EAAC General Operating Support Application Deadline: TBA
Important Dates (subject to change)
Letter of Intent Application Opens TBA
Letter of Intent Deadline TBA
EAAC General Operating Support Applications
Open
TBA
EAAC General Operating Support Applications
Deadline
TBA
Grant Panel Review TBA
PRAC Commission Review and Adopts
Recommendations
TBA
Notice of Intent to Award TBA
Awards Disbursed TBA
Grant Activity Period TBA
For a copy of the guidelines in Spanish, contact the Fresno Arts Council at 559-237-9734
Para obtener una copia de las pautas en español, llame a Fresno Arts Council (el
Consejo de las Artes de Fresno) al 559.237.9734.
For a copy of the guidelines in Hmong, contact the Fresno Arts Council at 559-237-9734.
Hu rau lub Fresno Art Council ntawn 559-237-9734 yog tias koj xav tau ib daim ntawv
luam u alus Hmoob txog peb cov lus coj qhia.
For a copy of guidelines in Punjabi contact the Fresno Arts Council at 559-237-9734
ਪੰ ਜਾਬੀ ਿਵਚ ਿਵਸਾ-ਿਵਿਰੇਸ਼ਾਂ ਿ◌◌ੀ ਕਾਪੀ ਲਈ ਫਵਰਿਜ਼ੋ ਆਰਟਸ ਕੌਂ ਸਲ ਿ◌◌ੰ 559-237-9734 'ਤੇ ਸੰ ਪਰਕ ਕਰੋ
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Guidelines, 2025
2
Fresno Arts Council Information
Who We Are
The Fresno Arts Council (FAC) is the state-local partner to the California Arts Council,
designated by Resolution of the County Board of Supervisors to serve as the County’s arts
agency. It is designated as the City of Fresno’s arts agency by Memorandum of
Understanding. As the local arts agency, the FAC provides financial support, services, and
other programs to a variety of cultural arts organizations, individual artists, and diverse
communities throughout Fresno County.
Our mission is to enrich people’s lives through the arts, and our purpose is to foster an arts
community that recognizes and honors the contributions of its citizens to the arts. We are
managed by a volunteer board of directors, and our agency solicits financial support from
foundations, membership dues, government and corporate funders, as well as private
donors.
The Fresno Arts Council (FAC) will award grants generated by the Measure P sales tax to
nonprofit community-based organizations for the purpose of increasing access to the Arts
in the City of Fresno.
Contact Information:
Please direct questions regarding Operating Grant Guidelines to Lilia Gonzáles Chávez,
Executive Director, at lilia@fresnoartscouncil.org.
Cultural Arts Grant Overview
Measure P
In 2018, City of Fresno residents voted to approve Measure P, also known as the FRESNO
CLEAN AND SAFE NEIGHBORHOOD PARKS TRANSACTIONS AND USE TAX, a three-eighths
(.0375) percent sales tax ordinance, dedicated to improving parks, arts, and recreation
facilities, services, and access in the City of Fresno. Funds collected by the sales tax can
be used for purposes including, but not limited to, clean and safe parks; new parks and
recreation facilities; youth and senior recreation and after-school facilities and job
training; improved walking and biking trails; the San Joaquin River Parkway; beautification
of streets; and expanded access to arts and culture. Measure P is a renewable thirty-year
initiative implemented by the City of Fresno with oversight by the Parks, Recreation, and
Arts Commission (PRAC), a nine member committee established by the ordinance, with
Mayoral appointments.
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Twelve percent (12%) of funds collected by the sales tax are designated for improving
access to arts and culture via competitive grants for cultural arts nonprofit organizations
within City limits. This process is discussed in category 4 of the ordinance.
Fresno Municipal Code Section 7-1506(b)(4) Expanded Access to Arts
and Culture.
(A) Twelve percent (12%) percent of the funds made available from Section 7-1504 shall be
made available on an annual basis to invest in competitive grants for nonprofit
organizations that support and expand access to arts and cultural programming.
(B) Grants funded pursuant to this paragraph shall be implemented by the Commission in
partnership with the Fresno Arts Council, or its successor local arts agency, using multiple
solicitations that allow for a diverse set of programs, with different program sizes and
reach, including core operating and project-support grants, to be funded. The Commission
shall ensure that grant applications are reviewed in a transparent, competitive process.
(C) Prior to the implementation of subparagraph (B), the Commission shall work in
partnership with the Fresno Arts Council, and local arts and cultural stakeholders, to
develop a Cultural Arts Plan for the City of Fresno that would identify needs in the arts and
cultural community; prioritize outcomes and investments; and develop a vision and goals
for the future of Fresno arts and cultural programs that are reflective of the cultural,
demographic, and geographic diversity of Fresno. This process shall include a robust
community engagement process, including multiple public meetings. The Cultural Arts
Plan shall be updated every five years by the Commission.
(D) Funding for operating support distributed pursuant to this paragraph shall support
organizational stability for arts and cultural organizations that reflect the cultural,
geographic and demographic diversity of the City of Fresno; and reflect the proportion of
each grantee's overall operations that serves residents within, or visitors to, the City of
Fresno sphere of influence.
(E) Grants funded pursuant to subparagraph (B) shall prioritize organizations and programs
that support and expand diverse public or youth engagement and equity.
Cultural Arts Plan
Fresno’s Cultural Arts Plan was developed through a year-long process involving robust
community participation. A partnership between a consultant group, Network for Culture
and Arts Policy (NCAP), the City of Fresno PARCS Department, Fresno Arts Council, and the
Parks, Recreation and Arts Commission (PRAC), with multiple opportunities for public
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surveys, meetings, and draft comments, individual interviews with community arts
stakeholders, and research into Fresno’s cultural arts assets and needs, ultimately led to
the approval and adoption of Fresno’s Cultural Arts Plan, which must be reassessed and
updated every five years, according to requirements set forth in the ordinance. The Cultural
Arts Plan was adopted by the Fresno City Council on August 10, 2023.
Fresno’s Cultural Arts Plan identifies the following goals, with associated strategies, in
addition to defining funding priorities. These goals and funding priorities informed the
development of Cultural Arts Grant Programs, managed by the Fresno Arts Council with
stakeholder input and PRAC involvement and oversight.
Cultural Arts Plan Vision
Cultural arts in Fresno will be recognized, prioritized, inclusive, accessible, and continue to
reflect, celebrate, and connect the community.
Goals and Outcomes
(see Cultural Plan at https://www.fresnoartscouncil.org/fresnos-cultural-arts-plan for
recommendations, strategies, and funding priorities):
I. GRANT-MAKING & COMMUNITY ENGAGEMENT
Desired Outcome: Establish a strong foundation to support and expand access to
arts and culture through grant-making and community engagement.
II. STABILIZE, RESTORE & ACTIVATE
Desired Outcome: Cultural arts organizations and assets will be stabilized, restored
and activated to expand access to arts and culture.
III. EDUCATION & ORGANIZATIONAL DEVELOPMENT
Desired Outcome: Expand access to a variety of arts and cultural education
programs to provide educational opportunities for people of all ages.
Desired Outcome: Equip artists, cultural practitioners and organizations with the
skills and organizational resources to stabilize and expand operations.
IV. CELEBRATE & ENHANCE
Desired Outcome: Elevate and celebrate arts and culture to strengthen a sense of
community.
V. ADDRESS BARRIERS, INNOVATE & EXPAND
Desired Outcome: Expand access to arts and culture by eliminating barriers and
investing in innovation.
VI. MUNICIPAL INVESTMENTS & POLICIES TO SUPPORT CULTURAL ARTS
Desired Outcome: Establish a strong foundation to support and expand access to
arts and culture through policy planning and municipal investment.
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Expanded Access to Arts and Culture Funding Allocations
Funding Distribution is contingent on availability of funds and number of applications
received in each category. The tentative distribution follows:
• 40% of available funds will be distributed for Established Organization General
Operating Support grants
• 40% of available funds will be distributed for Established Organization Project
Specific grants
• 10% of available funds will be distributed for Emerging Organization General
Operating Support grants
• 10% of available funds will be distributed for Emerging Organization Project Specific
grants
• General Operating Support Grants will not exceed $50,000 for Emerging
Organizations and $300,000 for Established Organizations
• Project Specific grants will not exceed $50,000 for Emerging Organizations and
$150,000 for Established Organizations.
Emerging Organization General Operating Support
Application Guidelines
Deadline: TBA
Grant Awards: Up to $50,000
Grant Activity Period: TBA
Eligibility for Funding
General Operating Support was called out in the Ordinance to support organizational
stability for arts and cultural organizations that reflect the cultural, geographic, and
demographic diversity of the City of Fresno; and reflect the proportion of each grantee’s
overall operations that serves residents within, or visitors to, the City of Fresno’s sphere of
influence. Grants shall prioritize organizations and programs that support and expand
diverse public or youth engagement and equity.
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6
General Operating Support Grants are intended to provide core support to Cultural Arts
Organizations to sustain and increase community access to a broad and diverse range of
opportunities in the arts. The General Operating Support grant provides direct funding for
ongoing operations. This grant contributes to a robust and diverse arts workforce and
infrastructure. Funds may be used to support any eligible expenses associated with the
general operations of Cultural Arts Organizations, including but not limited to rent,
utilities, and staff salaries incurred within the territorial limits of the City of Fresno.
General Operating Support grants are intended to support the applicant organization in
carrying out its mission. Funding is not intended to support a specific project.
Eligibility: Who Can Apply for Emerging Organization General Operating
Support?
Emerging Organizations can apply ONLY in the Emerging category
Emerging Organizations applying under their own 501(c)3 can apply for both General
Operating Support Grants and Project Specific Grants
Eligibility Requirements
All must be true to apply Organizations with an annual budget of less than $50,000, as
presented to the IRS in their 990 or in their most recent board-approved Balance Sheet and
Statement of Activities
• Organizations with an Arts and Culture NTEE designation or any other State or
Federal designation that shows the purpose of the organization is arts and
cultural programing may apply for both General Operating Support and Project
Specific Support. (visit
https://www.irs.gov/pub/irs-tege/p4838.pdf to learn about NTEE codes)
• Organizations with active status who are in good standing with the Office of Attorney
General, California Secretary of State (SOS), and Internal Revenue Service (IRS
Charities) at the time of signing the Service Agreement.
Eligibility: Who Can’t Apply for Emerging Organization General Operating
Support?
Ineligible Organizations
• Organizations without a principal place of business in the City of Fresno. P.O. Boxes
will not be accepted as official business address.
• Organizations without an Arts and Culture NTEE Code or other State or Federal
designation established for the purpose of providing Arts and Cultural projects and
programs
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• Organizations with an annual budget of greater than $50,000
• Organizations whose primary mission is to raise funds
• Organizations whose primary function is regranting
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• K-12 Schools; County Offices of Education; Public and Private Colleges and
Universities
• Government agencies that receive funding from the City of Fresno Budget.
• Organizations that do not serve the public and/or provide public programing.
• Organizations that are not in good standing with the Office of Attorney General,
California Secretary of State (SOS), Internal Revenue Service (IRS Charities)
• Fiscally sponsored organizations, collectives, and individuals
• For-profit businesses or sole proprietorships
Funding Amount: Emerging Organizations can request up to:
• 100% of their annual budget, capped at $50,000
General Operating support is based on the organization’s annual budget as presented to
the IRS and reported in their 990 or most recent board-approved Balance Sheet and
Statement of Activities
Emerging Arts and Culture Organizations are encouraged to apply for Operating Support
Grants that build capacity and expand their ability to reach and serve residents and visitors
in the City of Fresno. Emerging Arts and Culture Organization Support Grants prioritize
investment reflective of the cultural, demographic, and geographic diversity of Fresno.
Funding Use: You can use the grant money for these things:
A General Operating Support grant budget is required for this application. Examples of
eligible expenses for this funding include, but are not limited to:
• Rent
• Utilities
• Staff Salaries
• Maintenance
• Marketing
• Translation
• Evaluation
• Equipment
Funding Use: You can’t use the grant money for these things:
• Activities occurring outside of the City of Fresno
• Capital improvement projects/expenditures
• Specific project-related costs
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• Fundraising
• Hospitality costs, including food and beverages
• Political Advocacy or lobbying
• Projects in schools during school hours
• Projects on university campuses that are primarily for enrolled students
• Projects with religious or evangelical purposes
• Costs of goods for resale
Funding Restrictions:
• Matching funds are not required.
• Applicants must apply for the funding category that applies to their organization.
• Applicants may be directed to the appropriate category upon submission of Letter
of Intent
• Emerging Organizations can apply ONLY in the Emerging category
• Emerging Organizations applying under their own 501(c)3 can apply for both General
Operating Support Grants and Project Specific Grants
• Organization must provide a discounted admission to residents of the city of Fresno
for any ticketed events or general admission to venues
• The organization must operate and offer its programs in a nondiscriminatory manner
and in compliance with all applicable laws, including, without limitation, laws
protecting persons with disabilities.
• All activities funded with EAAC funds must take place in the City of Fresno, including
rehearsals, performances, and presentations.
Grant Application Materials
All application materials must be submitted electronically by the deadline. The “Expanded
Access to Arts and Culture” Emerging Organization General Operating Support grant
application consists of the following components:
• Letter of Intent (deadline TBA). Following eligibility review, applicants will be sent a
direct link to Emerging Organization General Operating Support application
• Narrative questions (see Appendix)
• Emerging Organization General Operating Support budget form and budget notes
• Work samples and support materials
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• Applicant’s most recent board-approved financial statements—Balance Sheet and
Statement of Activities
Grants Management System
All application materials must be submitted electronically using Fresno Arts Council’s
grants management system, Submittable. Paper or physical applications are not accepted
at this time. Technical assistance for creating a Submittable account is available through
Submittable’s Customer Support (https://www.submittable.com/help/submitter/).
*Note: all communications regarding Expanded Access to Arts and Culture Fund
grants will come through Submittable ONLY to the email address of the person who
submitted the application. Notifications will be sent from email addresses ending in
@fresnoartscouncil.org or @email.submittable.com—please make sure to add these
domain addresses to your safe senders list to avoid notifications being sent to your spam
or junk folder.
For questions, please contact Fresno Arts Council at 559-237-9734 or
lilia@fresnoartscouncil.org.
Fresno Arts Council encourages you to attend webinars, office hours, and make use of
instructional resources early in your application process. FAC strongly recommends
submitting the application and required supporting materials at least five (5) business days
before the deadline to provide time to troubleshoot any technical issues. The deadline to
submit the online grant applications will be TBA.
Technical Assistance
Technical assistance for grant program-specific inquiries is available from Fresno Arts
Council staff by email, phone, or virtual appointment. Technical assistance can provide
guidance around eligibility, application requirements, or review criteria.
Application resources will be available on Fresno Arts Council’s website at
https://www.fresnoartscouncil.org/artsandculturegrants
Email support: for technical assistance and grant guidelines questions, please call 559-
237-9734 Monday through Friday, between the hours of 9:00 am and 3:00 pm. You may
also email Executive Director, Lilia Gonzáles Chávez at lilia@fresnoartscouncil.org. Please
allow 24-48 hours for staff response.
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Accommodations for Disabilities
Individuals with disabilities who need reasonable accommodations to apply should make
their requests to Fresno Arts Council staff at least 72 hours in advance of deadlines or
meetings. Please email lilia@fresnoartscouncil.org or call 559-237-9734 for
accommodations requests.
Translation Services
Grant guidelines are available in English, Hmong, Spanish, and Punjabi. Requests can be
emailed to lilia@fresnoartscouncil.org. If the application is submitted in a language other
than English, a third-party translation service will be used to translate application answers
into English for Grant Review Panelists.
Evaluation and Scoring
Grant review panelists use the following scale to assess how well the application meets the
review criteria.
Adjudication of applications determined holistically, based on the narrative questions
included in the Appendix.
Score Rank Rank Description
6 Exemplary Overwhelmingly achieves the purpose of the program. Meets all the review criteria
and project requirements to the highest degree
5 Strong Strongly achieves the purpose of the program. Meets all the review criteria and
project requirements to a significant degree
4 Good Sufficiently achieves the purpose of the program. Meets all the review criteria and
project requirements to some degree
3 Fair Moderately achieves the purpose of the program. Meets most of the review
criteria and project requirements
2 Marginal Minimally achieves the purpose of the program. Meets some of the review criteria
and project requirements
1 Weak Does not achieve the purpose of the program; proposals that are not appropriate
for this grant category. Inadequately meets the review criteria or project
requirement
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Letter of Intent Eligibility Review
Once the Letter of Intent (LOI) submission window closes, Fresno Arts Council staff will
review submissions for eligibility and completeness.
Emerging Organization General Operating Support Grant Review Panel
An adjudication panel made up of members, representative of the cultural,
demographic and geographic diversity of Fresno will be assembled. They may include ,
artists and culture bearers, and Non-Profit administrators. The Commission and Fresno
Arts Council shall ensure that grant applications are reviewed in a transparent, competitive
process.
A call for panelists will go out at the same time as the Request for Proposal. A list of eligible
panelists will be submitted to the PRAC prior to the start of the adjudication process.
Panelists will be required to declare any possible conflict of interest at the time of
application. Declaration of Conflict-of-Interest form is included in the resources linked at
the end of this document. Panelists may not be on the board of staff of any applicant for
that grant cycle, nor related by blood or marriage to any applicant in that grant cycle.
Applicants may request their panel comments after they receive official notice of intent to
award.
Approval Process
After the Grant Review Panel meets to review all applications, Fresno Arts Council will
develop funding recommendations for PRAC’s approval. FAC ensures proposed grant awards
are aligned with granting policies and guidelines before publishing an intent to award notice.
Note: This is a competitive program. An application may or may not be funded depending
on the number of applications, the amount of award money available, and the application’s
score based on the evaluation criteria. The eligibility of an application does not imply that it
will be automatically funded. All applicants will be notified prior to the beginning of the
funding cycle about the results of the application.
Appeal Process
Any applicant not recommended to receive an award may submit a written appeal to
Fresno Arts Council staff (we will provide the link) no later than 5:00 p.m. by the tenth
(10th) calendar day following the release of notification of Intent to Award letter.
Incomplete applications are not eligible for the appeals process. Denial of applicant’s
Letter of Intent, shall be eligible for appeal.
The letter of appeal must state:
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1. The grounds on which you believe your application was not properly dealt with or
assessed;
2. Specific reasons or evidence you may have to support your appeal.
Once the appeal is received by the FAC, Staff will present it to the PRAC Subcommittee for review and
recommendation to the PRAC. The PRAC will make the final ruling.
Note: Upon request from an applicant, FAC staff will provide written comments submitted by the
evaluation panels, to help the applicant understand their score.
Grantee requirements and Policies
Grantee Orientation and Award Disbursement
All grantees are required to attend an Expanded Access to Arts and Culture Fund grantee
orientation, submit a Scope of Work and revised budget, and complete a grant agreement
before receiving award.
90% of grant funds will be awarded at the beginning of the grants cycle with the remaining
10% awarded when final reports are submitted.
Required Standards of Practice
• Certificate of Insurance
• Workers’ Compensation
• The applicant organization must have a functioning Board of Directors that meets
regularly.
• Organization must provide a discounted admission to residents of the City of Fresno
for any ticketed events or general admission to venues
• The organization must operate and offer its programs in a nondiscriminatory manner
and in compliance with all applicable laws, including, without limitation, laws
protecting persons with disabilities.
• The organization must have active status and be in good standing with the Office of
Attorney General, California Secretary of State (SOS), Internal Revenue Service (IRS
Charities) at the time of signing the Service Agreement.
• Grantee Agreement: Vendors/Background Checks/Project Amendments/Legal
Requirements/Conflict of Interest/Incomplete Projects (see Grantee Requirement
Links)
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• Grantee Agreement: Vendors/Background Checks/Project Amendments/Legal
Requirements/Conflict of Interest/Incomplete Projects (see Grantee Requirement
Links)
Permits and Permissions
It is the responsibility of the grantee to secure venues, appropriate permits, and insurance
for public presentations. The grantee is solely responsible for securing the necessary City,
County, or community permits or approvals for project elements such as publicly installed
art, street closures, sound amplification in public space, or murals. Planning for this should
be reflected in the application narrative. The grantee shall be responsible for maintenance of
the project.
Quarterly Reporting
EAAC grantees will be required to submit quarterly reports including progress toward
achieving Scope of Services included in grantee agreement and program participant data
as required by the City of Fresno.
Data
At a minimum, data collection shall include:
a. Attendance data:
i. Number of youth participants served. Youth shall be defined as age seventeen
(17) and younger
ii. Number of adult participants served. Adult shall be defined as ages eighteen
(18) through sixty-one (61)
iii. Number of senior participants served. Senior shall be defined as age sixty-two
(62) and older
b. Participant zip code data to identify the number and percentage of Fresno County
residents served
c. Race, ethnicity, household income and gender identity
d. For murals only: total square feet installed and location/address
e. Photos and/or videos highlighting grant funded projects, events, programs, etc.
Acknowledging Fresno Arts Council Support
Per the terms of the Grantee Agreement, grantees must acknowledge the support of the
Measure P, Parks and Arts ordinance and Fresno Arts Council to demonstrate how City
funds support arts and culture. Recipients receiving funds must use the required logos
and credit line on all printed and electronic materials that advertise performances,
exhibitions, or other public events throughout their work or, for those receiving
operating support, throughout the grant period. The credit line is below. Logos will be
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provided to all grantees upon signed grant agreement. Failure to comply may result in
termination of grant agreement.
“[Organization or project name] is funded in part by the City of Fresno Measure P
Expanded Access to Arts and Culture Fund administered by the Fresno Arts Council.”
Cultural Arts Calendars
Grantees must submit programming information and flyers to be included in the Cultural
Arts Calendar. Details will be provided to grantees.
Policies to be inserted in Appendix once adopted.
Applicant Resources
Measure P Ordinance
Cultural Arts Plan
Eligibility Checklist/Definitions
Letter of Intent Guidelines
Technical Assistance/Workshop Schedule
Frequently Asked Questions
Fiscal Sponsorship Resources: https://www.councilofnonprofits.org/running-
nonprofit/administration-and-financial-management/fiscal-sponsorship-nonprofits and
https://fiscalsponsorship.com/fiscal-sponsorship-quick-start-basics/
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Grantee Requirement Links
Legal Requirements:
Insurance/endorsements
Conflict of Interest disclosure statement
Monitoring, Evaluation and Reporting Requirements
Subcontracts
Acknowledgement, Copyright, Indemnification and Cultural Arts Calendar
Background Check/Mandated Reporter, etc.
SOW, Amendments and Extensions
Payment and Reporting Schedules
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Appendix: Emerging Organization General Operating Support Grant
Narrative Questions
Funding Statement
Prepare a Funding Statement with 150 words or fewer that describes what you will do with
funds if awarded. Must include activity, location(s) where activity will take place, age of
population to be served, projected number of people to be served, and desired impact.
Begin Statement by saying: “With support from an Expanded Access to Arts and Culture
grant, [your organization] will…”
These statements may be used to report to the City of Fresno and/or be included in public
documents and press information.
1)Organization Description
A.What is your mission?
B. What work is the organization most proud of?
C.Who is your target audience? (age, ethnicity, income level, geography, etc.)
D.What part of the city do you serve? Identify primary zip codes where you provide
services.
E.What are the primary activities of the organization? Describe the arts and culture
programs open to the public.
2)Cultural Plan
A.How does your work align with the Cultural Plan?
B.Identify the Cultural Plan goals that align most closely with your organization and
explain how your work contributes to those goals.
C.Identify and describe the ways in which your work addresses Cultural Plan specific
recommendations and strategies
3)Proposed Impact and Outcomes (organizational and community)
A.What outcomes are you envisioning from this grant support?
B.How will your organization measure the impact of this award?
C.How many youths will benefit?
D.Describe how your organization evaluates the quality and success of your programs
E. How will you capture who participates?
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4) Governance and Administrative Structure
A. Describe your governance structure, including board meeting frequency, and board
committee structure. Upload a board roster, include members’ names, occupation
if known, and any other demographic information that you would like considered.
B. Describe your administrative structure, including administrative, program, or
cultural and/or artistic staff. List primary staff names, titles, and duties. Provide brief
bios for key staff and include years with the organization.
C. How do you engage in planning (i.e., who is involved in planning, how far in advance
do you plan your programming)? What are your organization’s overarching goals?
D. How are the board, staff, and programming reflective of Fresno’s citywide
demographics?
5) Budget
A. How does your organization intend to make use of General Operating Support funds
if awarded?
B. Budget Spreadsheet
C. Budget Notes
Application Materials
Budget
Please complete a budget using the template provided in the direct application link
provided to you
Work Samples
Please upload a minimum of two work samples (maximum six) demonstrating your
organization’s recent arts and culture programming.
You are required to submit at least two work samples that exemplify the cultural and/or
artistic programs or events presented by your organization. This may include video or audio
recordings, or digital images of performances, exhibitions, or events. Select the type of
work sample that is most relevant to your organization.
Supporting Material
You may upload or provide links for up to three supporting documents from the past five
years that demonstrate the impact of your programs on viewers/participants. Examples
include: letters of support, participant testimonials, reviews, audience surveys, social
media posts.
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Guidelines, 2025
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This section is OPTIONAL; however, you are strongly encouraged to submit at least one
document. These documents help reviewers understand the impact of your programs on
participants and audience members. Note: You may upload a document or provide links.
You may provide a title and brief description for necessary context. 3 documents or links
maximum.
Supporting Material: Financial Statements
Please upload your organization’s most recent board-approved Balance Sheet and
Statement of Activities
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Expanded Access to Arts and Culture Fund
Established Organization General Operating Support Guidelines
Funded by Measure P
Administered by Fresno Arts Council in partnership with the City of Fresno Parks,
Recreation, and Arts Commission (PRAC)
Letter of Intent Submission Deadline: TBA
EAAC General Operating Support Application Deadline: TBA
Important Dates (subject to change)
Letter of Intent Submissions Open TBA
Letter of Intent Deadline TBA
EAAC General Operating Support Applications
Open
TBA
EAAC General Operating Support Applications
Deadline
TBA
Grant Panel Review TBA
PRAC Commission Review and Adopts
Recommendations
TBA
Notice of Intent to Award TBA
Awards Disbursed TBA
Grant Activity Period TBA
For a copy of the guidelines in Spanish, contact the Fresno Arts Council at 559-237-9734
Para obtener una copia de las pautas en español, llame a Fresno Arts Council (el
Consejo de las Artes de Fresno) al 559.237.9734.
For a copy of the guidelines in Hmong, contact the Fresno Arts Council at 559-237-9734.
Hu rau lub Fresno Art Council ntawn 559-237-9734 yog tias koj xav tau ib daim ntawv
luam u alus Hmoob txog peb cov lus coj qhia.
For a copy of guidelines in Punjabi contact the Fresno Arts Council at 559-237-9734
ਪੰ ਜਾਬੀ ਿਵਚ ਿਦਸ਼ਾ-ਿਨਰਦੇਸ਼� ਦੀ ਕਾਪੀ ਲਈ ਫ ਿ ਰ ਜ਼ ਨ� ਆਰਟਸ ਕ�ਸਲ ਨ ੂੰ 559-237-9734 'ਤੇ ਸੰ ਪਰਕ ਕਰੋ
Established Organization General Operating Support
Guidelines, 2025
1245 Van Ness Ave. Fresno, CA 93721 (559)237-9734 https://www.fresnoartscouncil.org
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Fresno Arts Council Information
Who We Are
The Fresno Arts Council (FAC) is the state-local partner to the California Arts Council,
designated by Resolution of the County Board of Supervisors to serve as the County’s arts
agency. It is designated as the City of Fresno’s arts agency by Memorandum of
Understanding. As the local arts agency, the FAC provides financial support, services, and
other programs to a variety of cultural arts organizations, individual artists, and diverse
communities throughout Fresno County.
Our mission is to enrich people’s lives through the arts, and our purpose is to foster an arts
community that recognizes and honors the contributions of its citizens to the arts. We are
managed by a volunteer board of directors, and our agency solicits financial support from
foundations, membership dues, government and corporate funders, as well as private
donors.
The Fresno Arts Council (FAC) will award grants generated by the Measure P sales tax to
nonprofit community-based organizations for the purpose of increasing access to the Arts
in the City of Fresno.
Contact Information:
Please direct questions regarding Operating Grant Guidelines to Lilia Gonzáles Chávez,
Executive Director, at lilia@fresnoartscouncil.org.
Cultural Arts Grant Overview
Measure P
In 2018, City of Fresno residents voted to approve Measure P, also known as the FRESNO
CLEAN AND SAFE NEIGHBORHOOD PARKS TRANSACTIONS AND USE TAX, a three-eighths
(.0375) percent sales tax ordinance, dedicated to improving parks, arts, and recreation
facilities, services, and access in the City of Fresno. Funds collected by the sales tax can
be used for purposes including, but not limited to, clean and safe parks; new parks and
recreation facilities; youth and senior recreation and after-school facilities and job
training; improved walking and biking trails; the San Joaquin River Parkway; beautification
of streets; and expanded access to arts and culture. Measure P is a renewable thirty-year
initiative implemented by the City of Fresno with oversight by the Parks, Recreation, and
Arts Commission (PRAC), a nine member committee established by the ordinance, with
Mayoral appointments.
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Twelve percent (12%) of funds collected by the sales tax are designated for improving
access to arts and culture via competitive grants for cultural arts nonprofit organizations
within City limits. This process is discussed in category 4 of the ordinance.
Fresno Municipal Code Section 7-1506(b)(4) Expanded Access to Arts
and Culture.
(A) Twelve percent (12%) percent of the funds made available from Section 7-1504 shall be
made available on an annual basis to invest in competitive grants for nonprofit
organizations that support and expand access to arts and cultural programming.
(B) Grants funded pursuant to this paragraph shall be implemented by the Commission in
partnership with the Fresno Arts Council, or its successor local arts agency, using multiple
solicitations that allow for a diverse set of programs, with different program sizes and
reach, including core operating and project-support grants, to be funded. The Commission
shall ensure that grant applications are reviewed in a transparent, competitive process.
(C) Prior to the implementation of subparagraph (B), the Commission shall work in
partnership with the Fresno Arts Council, and local arts and cultural stakeholders, to
develop a Cultural Arts Plan for the City of Fresno that would identify needs in the arts and
cultural community; prioritize outcomes and investments; and develop a vision and goals
for the future of Fresno arts and cultural programs that are reflective of the cultural,
demographic, and geographic diversity of Fresno. This process shall include a robust
community engagement process, including multiple public meetings. The Cultural Arts
Plan shall be updated every five years by the Commission.
(D) Funding for operating support distributed pursuant to this paragraph shall support
organizational stability for arts and cultural organizations that reflect the cultural,
geographic and demographic diversity of the City of Fresno; and reflect the proportion of
each grantee's overall operations that serves residents within, or visitors to, the City of
Fresno sphere of influence.
(E) Grants funded pursuant to subparagraph (B) shall prioritize organizations and programs
that support and expand diverse public or youth engagement and equity.
Cultural Arts Plan
Fresno’s Cultural Arts Plan was developed through a year-long process involving robust
community participation. A partnership between a consultant group, Network for Culture
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and Arts Policy (NCAP), the City of Fresno PARCS Department, Fresno Arts Council, and the
Parks, Recreation and Arts Commission (PRAC), with multiple opportunities for public
surveys, meetings, and draft comments, individual interviews with community arts
stakeholders, and research into Fresno’s cultural arts assets and needs, ultimately led to
the approval and adoption of Fresno’s Cultural Arts Plan, which must be reassessed and
updated every five years, according to requirements set forth in the ordinance. The Cultural
Arts Plan was adopted by the Fresno City Council on August 10, 2023.
Fresno’s Cultural Arts Plan identifies the following goals, with associated strategies, in
addition to defining funding priorities. These goals and funding priorities informed the
development of Cultural Arts Grant Programs, managed by the Fresno Arts Council with
stakeholder input and PRAC involvement and oversight.
Cultural Arts Plan Vision
Cultural arts in Fresno will be recognized, prioritized, inclusive, accessible, and continue to
reflect, celebrate, and connect the community.
Goals and Outcomes
(see Cultural Plan at https://www.fresnoartscouncil.org/fresno-cultural-arts-plan for
recommendations, strategies, and funding priorities):
I. GRANT-MAKING & COMMUNITY ENGAGEMENT
Desired Outcome: Establish a strong foundation to support and expand access to
arts and culture through grant-making and community engagement.
II. STABILIZE, RESTORE & ACTIVATE
Desired Outcome: Cultural arts organizations and assets will be stabilized, restored
and activated to expand access to arts and culture.
III. EDUCATION & ORGANIZATIONAL DEVELOPMENT
Desired Outcome: Expand access to a variety of arts and cultural education
programs to provide educational opportunities for people of all ages.
Desired Outcome: Equip artists, cultural practitioners and organizations with the
skills and organizational resources to stabilize and expand operations.
IV. CELEBRATE & ENHANCE
Desired Outcome: Elevate and celebrate arts and culture to strengthen a sense of
community.
V. ADDRESS BARRIERS, INNOVATE & EXPAND
Desired Outcome: Expand access to arts and culture by eliminating barriers and
investing in innovation.
VI. MUNICIPAL INVESTMENTS & POLICIES TO SUPPORT CULTURAL ARTS
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Desired Outcome: Establish a strong foundation to support and expand access to
arts and culture through policy planning and municipal investment.
Expanded Access to Arts and Culture Funding Allocations
Funding Distribution is contingent on availability of funds and number of applications
received in each category. The tentative distribution follows:
• 40% of available funds will be distributed for Established Organization General
Operating Support grants
• 40% of available funds will be distributed for Established Organization Project
Specific grants
• 10% of available funds will be distributed for Emerging Organization General
Operating Support grants
• 10% of available funds will be distributed for Emerging Organization Project Specific
grants
• General Operating Support Grants will not exceed $50,000 for Emerging
Organizations and $350,000 for Established Organizations
• Project Specific grants will not exceed $50,000 for Emerging Organizations and
$150,000 for Established Organizations
An estimated 6.2 million dollars will be available in this round of funding.
Established Organization General Operating Support
Application Guidelines
Deadline: TBA
Grant Awards: Up to $350,000
Grant Activity Period: TBA
Eligibility for Funding
General Operating Support was called out in the Ordinance to support organizational
stability for arts and cultural organizations that reflect the cultural, geographic, and
demographic diversity of the City of Fresno; and reflect the proportion of each grantee’s
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overall operations that serves residents within, or visitors to, the City of Fresno’s sphere of
influence. Grants shall prioritize organizations and programs that support and expand
diverse public or youth engagement and equity.
General Operating Support Grants are intended to provide core support to Cultural Arts
Organizations to sustain and increase community access to a broad and diverse range of
opportunities in the arts. The General Operating Support grant provides direct funding for
ongoing operations. This grant contributes to a robust and diverse arts workforce and
infrastructure. Funds may be used to support any eligible expenses associated with the
general operations of Cultural Arts Organizations, including but not limited to rent,
utilities, and staff salaries incurred within the territorial limits of the City of Fresno.
General Operating Support grants are intended to support the applicant organization in
carrying out its mission. Funding is not intended to support a specific project.
Eligibility: Who Can Apply for Established Organization General Operating
Support?
Eligible Organizations Eligibility Requirements.
All must be true to apply.
• Organizations with an annual budget greater than $50,000, as presented to the IRS
in their 990 or in their most recent board-approved Balance Sheet and Statement of
Activities
• Organizations with an Arts and Culture NTEE designation or any other State
or Federal designation that shows the purpose of the organization is arts
and cultural programing may apply for either General Operating Support
or Project Specific Support. (visit https://www.irs.gov/pub/irs-
tege/p4838.pdf to learn about NTEE codes)
• Arts and Culture organizations that can demonstrate expanded access to arts and
culture programming.
• Organizations with an Arts and Culture NTEE code designations who are previous
EAAC grantee organizations with an annual budget greater than $50,000, as
presented to the IRS in their 990 or in their most recent board-approved Balance
Sheet and Statement of Activities
• Organizations with active status who are in good standing with the Office of Attorney
General, California Secretary of State (SOS), and Internal Revenue Service (IRS
Charities) at the time of signing the Service Agreement.
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• Organizations with a principal business office in the City of Fresno. P.O. Boxes will
not be accepted as official business address.
Eligibility: Who Can’t Apply for Established Organization General Operating
Support?
Ineligible Organizations
• Organizations without a principal place of business in the City of Fresno. P.O. Boxes
will not be accepted as official business address.
• Organizations without an Arts and Culture NTEE Code or other State or Federal Arts
and Cultural designation.
• Organizations with an annual budget of less than $50,000
• Organizations whose primary mission is to raise funds
• Organizations whose primary function is regranting
• K-12 Schools; County Offices of Education; Public and Private Colleges and
Universities
• Government agencies that receive 25% or more of their funding from the City of
Fresno Budget.
• Organizations that do not serve the public and/or provide public programing.
• Organizations that are not in good standing with the Office of Attorney General,
California Secretary of State (SOS), and Internal Revenue Service (IRS Charities)
• Fiscally sponsored organizations, collectives, and individuals
• For-profit businesses or sole proprietorships
Funding Amount: Established Organizations can request up to:
• 70% of their annual budget, if the annual budget is less than $250,000
• 30% of their annual budget—capped at $350,000, if the annual budget is greater
than $250,000
General Operating support is based on the organization’s annual budget as presented to
the IRS and reported in their 990 or most recent board-approved Balance Sheet and
Statement of Activities
Funding Use: You can use the grant money for these things:
A General Operating Support grant budget is required for this application. Examples of
eligible expenses for this funding include, but are not limited to:
• Rent
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• Utilities
• Staff Salaries
• Maintenance
• Marketing
• Translation
• Evaluation
• Equipment
Funding Use: You CANNOT use the grant money for these things:
• Activities occurring outside of the City of Fresno
• Capital improvement
• Fundraising
• Hospitality costs, including food and beverages
• Political Advocacy or lobbying
• Projects in schools during school hours
• Projects on university campuses that are primarily for enrolled students
• Projects with religious or evangelical purposes
• Costs of goods for resale
Funding Restrictions:
• Matching funds are not required.
• Applicants must apply for the funding category that applies to their organization.
• Applicants may be directed to the appropriate category upon submission of Letter
of Intent
• Established Organizations can apply for either General Operating Support or one
Project Specific grant, but not both
• Organization must provide discounted admission to residents of the city of Fresno
for any ticketed events or general admission to venues
• The organization must operate and offer its programs in a nondiscriminatory manner
and in compliance with all applicable laws, including, without limitation, laws
protecting persons with disabilities.
• All activities funded with EAAC funds must take place in the City of Fresno, including
rehearsals, performances, and presentations. Application Process
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Grant Application Materials
All application materials must be submitted electronically by the deadline. The “Expanded
Access to Arts and Culture” Established Organization General Operating Support grant
application consists of the following components:
• Letter of Intent (deadline TBA). Following eligibility review, applicants will be sent a
direct link to Established Organization General Operating Support application
• Narrative questions (see Appendix)
• Established Organization General Operating Support budget form and budget notes
• Work samples and support materials
• Applicant’s most recent board-approved financial statements—Balance Sheet and
Statement of Activities
Grants Management System
All application materials must be submitted electronically using Fresno Arts Council’s
grants management system, Submittable. Paper or physical applications are not accepted
at this time. Technical assistance for creating a Submittable account is available through
Submittable’s Customer Support (https://www.submittable.com/help/submitter/).
*Note: all communications regarding Expanded Access to Arts and Culture Fund
grants will come through Submittable ONLY to the email address of the person who
submitted the application. Notifications will be sent from email addresses ending in
@fresnoartscouncil.org or @email.submittable.com—please make sure to add these
domain addresses to your safe senders list to avoid notifications being sent to your spam
or junk folder.
For questions, please contact Fresno Arts Council at 559-237-9734 or
lilia@fresnoartscouncil.org.
Fresno Arts Council encourages you to attend webinars, office hours, and make use of
instructional resources early in your application process. FAC strongly recommends
submitting the application and required supporting materials at least five (5) business days
before the deadline to provide time to troubleshoot any technical issues. The deadline to
submit the online grant applications will be TBA .
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Technical Assistance
Technical assistance for grant program-specific inquiries is available from Fresno Arts
Council staff by email, phone, or virtual appointment. Technical assistance can provide
guidance around eligibility, application requirements, or review criteria.
Application resources will be available on Fresno Arts Council’s website at
https://www.fresnoartscouncil.org/artsandculturegrants
Email support: for technical assistance and grant guidelines questions, please call 559-
237-9734 Monday through Friday, between the hours of 9:00 am and 3:00 pm. You may also
email Executive Director, Lilia Gonzáles Chávez at lilia@fresnoartscouncil.org. Please allow
24-48 hours for staff response.
Accommodations for Disabilities
Individuals with disabilities who need reasonable accommodations to apply should make
their requests to Fresno Arts Council staff at least 72 hours in advance of deadlines or
meetings. Please email lilia@fresnoartscouncil.org or call 559-237-9734 for
accommodations requests.
Translation Services
Grant guidelines are available in English, Hmong, Spanish, and Punjabi. Requests can be
emailed to lilia@fresnoartscouncil.org. If the application is submitted in a language other
than English, a third-party translation service will be used to translate application answers
into English for Grant Review Panelists.
Evaluation and Scoring
Grant review panelists use the following scale to assess how well the application meets the
review criteria.
Adjudication of applications is based on 7 weighted questions.
1) Organization Description 20%
2) Cultural Plan 20%
3) Programming 10%
4) Cultural equity and inclusion statements and policy 10%
5) Proposed Impact and Outcomes 15%
6) Governance and Administrative Structure 10%
7) Proposed Budget 15%
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Score Rank Rank Description
6 Exemplary Overwhelmingly achieves the purpose of the program. Meets all the review criteria
and project requirements to the highest degree
5 Strong Strongly achieves the purpose of the program. Meets all the review criteria and
project requirements to a significant degree
4 Good Sufficiently achieves the purpose of the program. Meets all the review criteria and
project requirements to some degree
3 Fair Moderately achieves the purpose of the program. Meets most of the review
criteria and project requirements
2 Marginal Minimally achieves the purpose of the program. Meets some of the review criteria
and project requirements
1 Weak Does not achieve the purpose of the program; proposals that are not appropriate
for this grant category. Inadequately meets the review criteria or project
requirement
Letter of Intent Eligibility Review
Once the Letter of Intent (LOI) submission window closes, Fresno Arts Council staff will
review submissions for eligibility and completeness. Once an LOI has been submitted, it
cannot be reopened, revised, or resubmitted. Letters of Intent that pass this initial review
will then be sent a direct link to the Grant Application.
Established Organization General Operating Support Grant Review Panel
An adjudication panel made up of community members representative of the cultural,
demographic and geographic diversity of Fresno will be assembled. They may include
artists and culture bearers, and Non-Profit administrators. The Commission and Fresno Arts
Council shall ensure that grant applications are reviewed in a transparent, competitive process.
A call for panelists will go out at the same time as the Request for Proposal. A list of eligible
panelists will be submitted to the PRAC prior to the start of the adjudication process.
Panelists will be required to declare any possible conflict of interest at the time of
application. Declaration of Conflict-of-Interest form is included in the resources linked at
the end of this document. Panelists may not be on the board or staff of any applicant for
that grant cycle, nor related by blood or marriage to any applicant in that grant cycle.
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Applicants may request their panel comments after they receive official notice of intent to
award.
Approval Process
After the Grant Review Panel meets to review all applications, Fresno Arts Council will
develop funding recommendations for PRAC’s approval. FAC will ensure that the proposed
grant awards are aligned with granting policies and guidelines before publishing an intent to
award notice.
Note: This is a competitive program. An application may or may not be funded depending
on the number of applications, the amount of award money available, and the application’s
score based on the evaluation criteria. The eligibility of an application does not imply that it
will be automatically funded. All applicants will be notified prior to the beginning of the
funding cycle about the results of the application.
Grantee requirements and Policies
Appeal Process
Appeals Process
Any applicant not recommended to receive an award may submit a written appeal to
Fresno Arts Council staff (we will provide the link) no later than 5:00 p.m. by the tenth
(10th) calendar day following the release of notification of Intent to Award letter.
Incomplete applications are not eligible for the appeals process. Denial of applicant’s
Letter of Intent, shall be eligible for appeal.
The letter of appeal must state:
1. The grounds on which you believe your application was not properly dealt with or
assessed;
2. Specific reasons or evidence you may have to support your appeal.
Once the appeal is received by the FAC, Staff will present it to the PRAC Subcommittee for
review and recommendation to the PRAC. The PRAC will make the final ruling.
Note: Upon request from an applicant, FAC staff will provide written comments submitted by
the evaluation panels, to help the applicant understand their score.
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Grantee Orientation and Award Disbursement
All grantees are required to attend an Expanded Access to Arts and Culture Fund grantee
orientation, submit a Scope of Work and revised budget, and complete a grant agreement
before receiving award.
90% of grant funds will be awarded at the beginning of the grants cycle with the remaining
10% awarded when final reports are submitted.
Required Standards of Practice
• Certificate of Insurance
• Workers’ Compensation
• The applicant organization must have a functioning Board of Directors that meets
regularly.
• Organization must provide discounted admission to residents of the City of Fresno
for any ticketed events or general admission to venues
• The organization must operate and offer its programs in a nondiscriminatory manner
and in compliance with all applicable laws, including, without limitation, laws
protecting persons with disabilities.
• The organization must have active status and be in good standing with the Office of
Attorney General, California Secretary of State (SOS), and Internal Revenue Service
(IRS Charities) at the time of signing the Service Agreement.
• Grantee Agreement: Vendors/Background Checks/Project Amendments/Legal
Requirements/Conflict of Interest/Incomplete Projects (see Grantee Requirement
Links)
Permits and Permissions
It is the responsibility of the grantee to secure venues, appropriate permits, and insurance
for public presentations. The grantee is solely responsible for securing the necessary City,
County, or community permits or approvals for project elements such as publicly installed
art, street closures, sound amplification in public space, or murals. Planning for this should
be reflected in the application narrative. The grantee shall be responsible for maintenance
of the project.
Quarterly Reporting
EAAC grantees will be required to submit quarterly reports including progress toward
achieving Scope of Services included in grantee agreement and program participant data
as required by the City of Fresno.
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Data
At a minimum, data collection shall include:
a. Attendance data:
i. Number of youth participants served. Youth shall be defined as age seventeen
(17) and younger
ii. Number of adult participants served. Adult shall be defined as ages eighteen
(18) through sixty-one (61)
iii. Number of senior participants served. Senior shall be defined as age sixty-two
(62) and older
b. Participant zip code data to identify the number and percentage of Fresno County
residents served
c. Race, ethnicity, household income and gender identity
d. For murals only: total square feet installed and location/address
e. Photos and/or videos highlighting grant funded projects, events, programs, etc.
Acknowledging Fresno Arts Council Support
Per the terms of the Grantee Agreement, grantees must acknowledge the support of the
Measure P, Parks and Arts ordinance and Fresno Arts Council to demonstrate how City
funds support arts and culture. Recipients receiving funds must use the required logos
and credit line on all printed and electronic materials that advertise performances,
exhibitions, or other public events throughout their work or, for those receiving
operating support, throughout the grant period. The credit line is below. Logos will be
provided to all grantees upon signed grant agreement. Failure to comply may result in
termination of grant agreement.
“[Organization or project name] is funded in part by the City of Fresno Measure P
Expanded Access to Arts and Culture Fund administered by the Fresno Arts Council.”
Cultural Arts Calendars
Grantees must submit programming information and flyers to be included in the Cultural
Arts Calendar. Details will be provided to grantees.
Policies to be inserted once adopted
Applicant Resources
Measure P Ordinance
Cultural Arts Plan
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Eligibility Checklist
Letter of Intent Guidelines
Technical Assistance/Workshop Schedule
Frequently Asked Questions
Fiscal Sponsorship Resources: https://www.councilofnonprofits.org/running-
nonprofit/administration-and-financial-management/fiscal-sponsorship-nonprofits and
https://fiscalsponsorship.com/fiscal-sponsorship-quick-start-basics/
Grantee Requirement Links
Legal Requirements:
Insurance/endorsements
Conflict of Interest disclosure statement
Monitoring, Evaluation and Reporting Requirements
Subcontracts
Acknowledgement, Copyright, Indemnification and Cultural Arts Calendar
Background Check/Mandated Reporter, etc.
SOW, Amendments and Extensions
Payment and Reporting Schedules
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Appendix: Established Organization General Operating Support Grant
Narrative Questions
Funding Statement:
Prepare a Funding Statement with 150 words or fewer that describes what you will do with
funds if awarded. Must include activity, location(s) where activity will take place, age of
population to be served, projected number of people to be served, and desired impact.
Begin Statement by saying: “With support from an Expanded Access to Arts and Culture
grant, [your organization] will…”
These statements may be used to report to the City of Fresno and/or be included in public
documents and press information.
1)Organization Description
A.What is your mission?
B.What work is the organization most proud of?
C.Who is your target audience? (age, ethnicity, income level, geography, etc.)
D.What part of the city do you serve? Identify primary zip codes where you provide
services.
2)Cultural Plan
A.How does your work align with the Cultural Plan?
B.Identify the Cultural Plan goals that align most closely with your organization and
explain how your work contributes to those goals.
C.Identify and describe the ways in which your work addresses Cultural Plan specific
recommendations and strategies
3)Programming
A.What are the primary activities of the organization?
B.Describe the major arts and culture programs open to the public.
C.Describe key exhibitors/presenters, and other collaborators.
D.Identify how you include individual artists in your work.
E.Identify how many paid Fresno-based artists will benefit from this grant.
F.If artists are not Fresno-based, provide justification for how including non-Fresno-
based artists will benefit City of Fresno residents.
G.List of arts and cultural activities for the past 2 years. (Title, Date, Brief Description)
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4) Cultural equity and inclusion statements and policy
A. Please include or describe your organization’s equity statement or other formalized
diversity, equity, and inclusion efforts.
B. What are the organizations perceived needs and or plans for increasing diversity in
board, staff, programming, and audiences over the next year?
C. What barriers, if any, are you removing to make that possible? (Barriers may include,
but are not limited to, physical ability, language, cultural norms, educational
background, and economic resources.).
5) Proposed Impact and Outcomes (organizational and community)
A. What outcomes are you envisioning from this grant support?
B. How will your organization measure the impact of this award?
C. Describe how your organization evaluates the quality and success of your programs
D. How will you capture who participates?
E. How many youths will benefit?
6) Governance and Administrative Structure
A. Describe your governance structure, including board meeting frequency, and board
committee structure. Include a board roster with members’ names, occupation if
known, and any other demographic information that you would like considered.
B. Describe your administrative structure, including administrative, program, or
cultural and/or artistic staff. List primary staff names, titles, and duties. Provide brief
bios for key staff and include years with the organization.
C. How do you engage in planning (i.e., who is involved in planning, how far in advance
do you plan your programming). What are your organization’s overarching goals?
D. How are the board, staff, and programming reflective of Fresno’s citywide
demographics?
7) Budget
A. How does your organization intend to make use of General Operating Support funds
if awarded?
B. Budget Spreadsheet
C. Budget Notes
Established Organization General Operating Support
Guidelines, 2025
1245 Van Ness Ave. Fresno, CA 93721 (559)237-9734 https://www.fresnoartscouncil.org
18
Application Materials
Budget
Please complete a budget using the template provided in the direct application link
provided to you
Work Samples
Please upload a minimum of two work samples (maximum six) demonstrating your
organization’s recent arts and culture programming.
You are required to submit at least two work samples that exemplify the cultural and/or
artistic programs or events presented by your organization. This may include video or audio
recordings, or digital images of performances, exhibitions, or events. Select the type of
work sample that is most relevant to your organization.
Supporting Material
You may upload or provide links for up to three supporting documents from the past five
years that demonstrate the impact of your programs on viewers/participants. Examples
include: letters of support, participant testimonials, reviews, audience surveys, social
media posts.
This section is OPTIONAL; however, you are strongly encouraged to submit at least one
document. These documents help reviewers understand the impact of your programs on
participants and audience members. Note: You may upload a document or provide links.
Yo u may provide a title and brief description for necessary context. 3 documents or links
maximum.
Supporting Material: Financial Statements
Please upload your organization’s most recent board-approved Balance Sheet and
Statement of Activities
Expanded Access to Arts and Culture
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357339v1 1
APPENDIX A
EAAC Policy Recommendations
EQUITY PRACTICES
Opportunity
• Our Emerging grant category welcomes small-budget organizations that are new
to grant funding and/or to providing arts programming.
• In this category, a reduced number of application questions will afford emerging
organizations a simpler process.
• This category also permits the use of Fiscal Sponsors, allowing small groups or
individual artists who are not yet 501(c)3 organizations to apply for funding.
• Emerging 501(c)(3) organizations will be permitted to apply for both Operating
Support and Project Specific grants, allowing them to request higher funding
amounts than would be available if they were limited to one category.
Outreach
• Applications, public information sessions, and workshops will be offered in the
four languages most used in the City of Fresno.
• One-on-one technical assistance sessions (in the aforementioned languages)
will support new and emerging organizations.
• Grant workshops, multilingual, will be offered in under-resourced parts of the
city.
Data collection
• Our new Letter of Intent submission will allow us to identify the need for
support and technical assistance so that we can offer help early in the
application process.
• Narrative questions in all application forms will include identification of who will
be served and in what parts of the city each applicant organization will be
providing services.
NEW STEP IN THE APPLICATION PROCESS
Letter of Intent (LOI)
This new step will require all potential applicants to submit a Letter of Intent (LOI) prior to
submission of an application. In reviewing these LOIs, our panels can determine
Expanded Access to Arts and Culture
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• Each applicant’s standing with the CA Secretary of State and Office of the
Attorney General
• Each applicant’s overall budget size, to help determine grant category eligibility
• Applicants’ Current Business Address in the City of Fresno (P.O. Box will not be
accepted. Accepted documents include utility bill with the organization’s name
or signed lease agreement.)
• Each applicant’s NTEE Code or any other State or Federal designation that
shows the purpose of the organization is to provide Arts and Cultural
programing.
• Any required City Right of Way (Will project take place on City of Fresno
Property?)
• Type of application being submitted [General Operating Support, Project
Specific or both (only emerging organizations can apply to both)]
• Type of project being proposed.
• Proof of previous work in the field: Examples showing evidence of arts and
culture programming will need to be included with applications for Fiscal
Sponsors and Established Organizations.
DEFINITIONS
Fiscal Sponsors
A Fiscal Sponsor is a 501(c) (3) nonprofit organization that provides fiduciary
oversight, financial management, and other administrative services to help build the
capacity of charitable projects.
• Fiscal Sponsors can apply for their own grant and can also apply on behalf of
multiple different projects with different applicant organizations.
• A Fiscal Sponsor must demonstrate that arts and /or culture work of the
sponsored project is consistent with/in furtherance of the sponsoring
organization’s non-profit purpose.
• A Fiscal Sponsor must be in good standing with the IRS, the CA Secretary of
State, and the CA Office of the Attorney General.
NOTE: any applicant organization, Established or Emerging, using a Fiscal
Sponsor is eligible to apply ONLY for Project Specific grants, not for Operating
Support.
Emerging Organizations
• Emerging Organizations are organizations with an annual budget size of
$50,000 or less.
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357339v1 3
• Emerging Organizations can apply ONLY in the Emerging category
• Emerging Organizations can include a collective of individual artists
applying through a Fiscal Sponsor.
• Emerging Organizations must provide discounted admission on ticketed
events or general admission to venues to residents of the City of Fresno.
• Emerging Applicants applying under their own 501(c)3 can apply for both
General Operating Grants and Project Specific grants
• However, Emerging Organizations applying with a Fiscal Sponsor are
eligible ONLY for project specific grants.
Established Organizations
• Established Organizations are organizations with annual budgets greater
than $50,000
• Established Organizations must demonstrate the ability to expand arts
and culture programming to the public.
• Established organizations can apply for either General Operating support
or a Project specific grant, but not both.
• Established Organizations must provide a discounted admission to
residents of the City of Fresno for any ticketed events or for general
admission to venues.
• A Fiscally Sponsored project with a financial report on their own project
that demonstrates a budget of over $50,000, provided by their Fiscal
Sponsor, will be eligible to apply in the Established Organization category
for project specific grants, but not for Operating Support.
• Established Organizations applying with a Fiscal Sponsor are eligible
ONLY for Project Specific grants.
GRANT CATEGORIES
General Operating Support
• To apply for General Operating Support, an organization must have an
Arts or Culture NTEE or any other State or Federal designation that shows
the purpose of the organization is to provide Arts and Cultural
programing.
• General Operating support is based on the organization’s annual budget
as presented to the IRS and reported either in their 990r tt ti or in their most
recent Statement of Activities. To qualify as an Established Organization,
that verified annual budget must be $50,000 or above.
Project Grants
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357339v1 4
• Emerging Project grants are designated only for organizations with budget
sizes under $50,000.
• Established Organization Project Grants are for organizations with budget
sizes over $50,000.
• Projects proposing Art Therapy must be offered by Licensed Art
Therapists. Therapists’ bios and license numbers must be included with
the application.
• Applicants with an NTEE other than art and/or culture may apply for a
project grant as an Established Organization, provided they can show an
overall budget greater than $50,000
REGULATIONS
Appeals Process
Any applicant not recommended to receive an award may submit a written appeal to
Fresno Arts Council staff (we will provide the link) no later than 5:00 p.m. by the tenth
(10th) calendar day following the release of notification of Intent to Award letter.
Incomplete applications are not eligible for the appeals process. Denial of applicant’s
Letter of Intent, shall be eligible for appeal.
The letter of appeal must state:
1. The grounds on which you believe your application was not properly dealt with or
assessed;
2. Specific reasons or evidence you may have to support your appeal.
Once the appeal is received by the FAC, Staff will present it to the PRAC Subcommittee
for review and recommendation to the PRAC. The PRAC will make the final ruling.
Note: Upon request from an applicant, FAC staff will provide written comments
submitted by the evaluation panels, to help the applicant understand their score.
All activities funded with EAAC funds must take place in the City of Fresno,
including rehearsals, performances, and presentations.
All Artists named in applications must provide a letter stating that they are
available and willing to participate, and that a fee has been agreed upon.
Funding distribution is contingent on available funds and number of applications
received in each category. Tentatively the distribution would be as follows:
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357339v1 5
a. 40% of available funds will be distributed for Established Organization General
Operating Support grants.
b. 40% of available funds will be distributed for Established Organization Project
Specific grants.
c. 10% of available funds will be distributed for Emerging Organization General
Operating Support grants.
d. 10% of available funds will be distributed for Emerging Organization Project
Specific grants.
e. General Operating Support Grants will not exceed $50,000 for Emerging
organizations and $350,000 for Established organizations.
f. Project Specific grants will not exceed $50,000 for Emerging organizations and
$150,000 for Established organizations.
Award allocations will be recommended by the PRAC with intent that these investments
recognize, reflect, and support the cultural, demographic, and geographic diversity of all
parts of the City of Fresno.
Guidelines will adhere to all requirements outlined in the Ordinance, the Cultural
Plan, and the Agreement between the City of Fresno and the Fresno Arts Council.
Letter of Intent Guidelines, 2025
1245 Van Ness Ave. Fresno, CA 93721 (559)237-9734 https://www.fresnoartscouncil.org
1
APPENDIX B
Expanded Access to Arts and Culture
Letter of Intent (LOI) Guidelines, 2025
Funded by Measure P
Administered by Fresno Arts Council in partnership with the City of Fresno Parks,
Recreation, and Arts Commission (PRAC)
Letter of Intent Submission Deadline: TBA
Application Deadline: TBA
Important Application Dates (Subject to Change)
Letter of Intent Application Opens TBA
Letter of Intent Deadline TBA
EAAC General Operating Support
Applications Open
TBA
EAAC Project Support Applications Open TBA
EAAC General Operating Support
Applications Deadline
TBA
EAAC Project Support Applications
Deadline
TBA
See Expanded Access to Arts and Culture Grant Guidelines, 2025, for more complete
application information. All guidelines are posted at
https://www.fresnoartscouncil.org/artsandculturegrants
EAAC Guidelines, 2025
General Operating Support, Emerging Organizations [insert link]
General Operating Support, Established Organizations [insert link]
Project Support, Emerging Organizations [insert link]
Project Support, Established Organizations [insert link]
Expanded Access to Arts and Culture Application Process
1. Letter of Intent (LOI)
Interested EAAC applicants must submit a Letter of Intent (LOI) in order to apply for the
EAAC Emerging or Established Organization General Operating and Project Support Grants.
Letter of Intent Guidelines, 2025
1245 Van Ness Ave. Fresno, CA 93721 (559)237-9734 https://www.fresnoartscouncil.org
2
LOIs must be submitted by the deadline (TBA) in order to be eligible to access the EAAC
grant portal. Applicants will receive a direct link to the application once screened for
eligibility in the applicant’s desired category. If an applicant is deemed ineligible, they will
be notified.
The LOI questions are listed below and must be submitted via the LOI digital application
platform at fresnoartscouncil.submittable.com [insert direct link].
EAAC Letter of Intent (LOI) Questions
Applicant Information
1. Are you:
___ Nonprofit Arts and Culture Organization
___ Nonprofit Organization (non arts and culture)
___ Individual Artist, Collective, or Project working with a Nonprofit Organization as
fiscal sponsor
*Individual Artists without a fiscal receiver are ineligible to apply
2. NTEE Code(s) or other valid State or Federal Arts and Culture verification:
3. Type of Application (select up to two for Emerging Organizations or one for
Established; verify eligibility here [insert direct link to checklist/policies]
___General Operating Support: Emerging Organization
___General Operating Support: Established Organization
___Project Support: Emerging Organization
___Project Support: Established Organization
4. Applicant Name (generally, the name of your organization):
5. Fiscal Sponsor (if applicable):
6. Fiscal Sponsor must provide proof of arts programming or indicate that arts and /or
culture work of the sponsored project is consistent with /in furtherance of the
sponsoring organization’s non-profit purpose. Fiscal Sponsors must provide a list of
arts and cultural activities. Upload a one page PDF (include Title, Date, Brief
Description for each activity)
7. Primary Contact Name:
8. Primary Contact Email:
Letter of Intent Guidelines, 2025
1245 Van Ness Ave. Fresno, CA 93721 (559)237-9734 https://www.fresnoartscouncil.org
3
9. Primary Contact Phone Number:
10. Fresno City Council District: Dropdown Menu
9. Official Business Address:
*must be a City of Fresno address to be eligible; P.O. Box will not be accepted
10. Proof of Address: Upload
Accepted documents include Utility Bill with the organization’s name or signed
lease
11. Overall Budget Size:
*Fiscally sponsored projects with a budget of over $50,000 must upload a board-
approved Balance Sheet and Statement of Activities from their fiscal sponsor
demonstrating stated budget in order to apply under Established Project Specific
Support
12. Upload most recent Federal Form 990 and year to date (YTD) board-approved
Balance Statement and Statement of Activities
*fiscally sponsored projects upload fiscal sponsor’s 990 and financial statements
**2024 budgets will be considered if YTD Statement of Activities demonstrates
stated overall budget
13. IRS Designation: upload IRS designation letter
14. Select the primary artistic disciplines of your project or organization (dropdown
menu): Dance, Literary Arts, Media Arts, Music, Theatre, Traditional and Folk Arts,
Visual Arts
15. City of Fresno Right of Way: Will your project take place on City of Fresno Property?
___Yes
___No
16. Secretary of State Office of Attorney General standing: FAC will confirm good
standing at the time of LOI submission.
17.
____ I acknowledge that applicant organization (including fiscal sponsor) must be in
good standing with state and federal entities at the time of signing the agreement.
Letter of Intent Guidelines, 2025
1245 Van Ness Ave. Fresno, CA 93721 (559)237-9734 https://www.fresnoartscouncil.org
4
18.
___I acknowledge that all grant awards are dependent upon funds available and that
I will be able to adjust my program/project, if I am awarded less than the amount of
funds requested.
19. Supporting Material:
___Fiscal Sponsor Letter of Agreement
If using a Nonprofit Fiscal Sponsor, the Fiscal Sponsor must provide a letter of agreement
acknowledging the Fiscal Sponsorship with the project applicant and submit the letter with
the application. If the grant is awarded, the Fiscal Sponsor becomes the legal contract
holder with the Fresno Arts Council. Once an application is submitted, the Fiscal Sponsor
cannot be changed.
Proposal Information
A. General Operating Support Grant Request Details
1. Are you applying for Emerging or Established Organization General Operating
Support?
___Emerging Organization General Operating Support (organizations with a
budget of less than $50,000)
___Established Organization General Operating Support (organizations with a
budget of greater than $50,000)
2. Proposed Grant Request Amount:
*See guidelines [links] for eligibility and request limits
3. Organization’s Mission Statement and Purpose (250 word max)
4. Briefly describe how your organization would make use of General Operating
Support funding (250 word max)
B. Project Support Grant Request Details
1. Are you applying for Emerging or Established Organization Project Specific
Support?
___Emerging Organization Project Specific Support (organizations with a budget
of less than $50,000)
___Established Organization Project Specific Support (organizations with a
budget of greater than $50,000)
2. Proposed Grant Request Amount:
*See guidelines [links] for eligibility and request limits
3. Organization’s Mission Statement and Purpose (250-word max)
Letter of Intent Guidelines, 2025
1245 Van Ness Ave. Fresno, CA 93721 (559)237-9734 https://www.fresnoartscouncil.org
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4. Briefly describe how your organization would make use of Project Specific
Support funding (250-word max)
2025
Expanded Access
to Arts and Culture
Guidelines
Workshop
1-30-2025
Expanded Access to Arts and Culture
Application Workshop
A.Introduction
B.Community Outreach
C.Presentations to PRAC
D.What's New?
E.What Changed?
F.Grant Guidelines
Community
Outreach for
Guideline
Update
•September 12, 2024 -September
23, 2024
•Information was shared on
our Website, Facebook,
Twitter, and Eblast.
•Community input was
accepted after each
presentation to the PRAC
Presentations
to the PRAC
•September 30, 2024
•Draft revisions informed by
community input and PRAC Arts
Subcommittee. Presented to the
PRAC
•November 18, 2024
•Second Revisions informed by
Legal /Parks Staff, Community
and PRAC subcommittee
presented to PRAC
Whats New?
EAAC Policy
Recommendations Letter of Intent
EAAC Policy
Recommendations
Equity Practices
Opportunity
Outreach
Data Collection
Definitions
Grant Categories
Regulations
What
Changed?
Data Collection includes the Letter of Intent ( LOI) •the LOI Provides an opportunity to collect information up front before the applicant goes through the work of submitting a full application. If the applicant has deficiencies, we can work with them to address those.
•Included in the LOI is a request for an Arts and Culture NTEE . This addresses the Ordinance specific language that General Operating support is for Arts and Cultural Organizations
Fiscal Sponsors 2 years of experience removed as requirement to serve as a fiscal agent.
Established Organizations •2 years of experience removed as requirement from Established Organizations.
•Established organizations can apply for either General Operating support or a Project specific grant, but not both.
•To apply for General Operating Support an Arts and Culture NTEE is required.
•
What else
Changed?
Regulations - Appeals Process
•Appeals criteria removed.
•All Artists named in applications must provide
a letter stating that they are available and
willing to participate, and that a fee has been
agreed upon..
Funding Distribution
•General Operating Support Grants for
Established Organizations will not exceed
$350 ,000
•Added Text - Award allocations will be
recommended by the PRAC with intent that
these investments recognize, reflect, and
support the cultural, demographic, and
geographic diversity of all parts of the City of
Fresno.
Grant Guidelines by Categories
General Operating Support
• Established
• Emerging
Project Specific
• Established
• Emerging
All identified changes were incorporated into each category where appropriate.
FUNDED BY MEASURE P
ADMINISTERED BY FRESNO ARTS COUNCIL
IN PARTNERSHIP WITH THE CITY OF FRESNO
PARKS, ARTS, AND RECREATION COMMISSION (PRAC)
Expanded Access to Arts and Culture Fund
Thank You!
City of Fresno
Staff Report
2600 Fresno Street
Fresno, CA 93721
www.fresno.gov
File #:ID 25-30 Agenda Date:1/30/2025 Agenda #:
2.-L.
REPORT TO THE CITY COUNCIL
FROM:JENNIFER CLARK, Director
Planning & Development Department
PHIL SKEI, Assistant Director
Planning & Development Department
BY:MAYRA MERINO, Senior Management Analyst
Planning & Development Department
SUBJECT
Approve the First Amendment to Local Housing Trust Fund Avalon Commons Phase II Agreement
with Avalon Commons Phase II, LP., a California Limited Partnership, to extend the project schedule
beyond 180 cumulative days. (Council District 6)
RECOMMENDATION
Staff recommends that the City Council approve the First Amendment to the Avalon Commons Phase
II Agreement with Avalon Commons Phase II, LP., a California Limited Partnership, to extend the
project schedule beyond 180 cumulative days.
EXECUTIVE SUMMARY
The Avalon Commons Phase II project is comprised of the construction of 45 multifamily units, a
mixture of one-, two-, and three-bedroom units for low-income households whose income ranges
from 30 percent to 80 percent of the area median income for Fresno County, and one manager unit.
The First Amendment to the Agreement proposes a 12-month extension to the project timeline,
allowing the Developer additional time to secure full financing required for this project. This extension
is necessary due to unforeseen delays in financing and will enable continued progress toward project
completion.
BACKGROUND
On May 11, 2023, the City Council approved the Local Housing Trust Fund Agreement with Avalon
Commons Phase II LP (Developer) for the construction of 45 multifamily housing units. Construction
was initially scheduled to begin in July 2025; however, unforeseen delays in securing financing have
affected the timeline.
On November 14, 2024, the Developer informed staff that an extension was necessary to secure the
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File #:ID 25-30 Agenda Date:1/30/2025 Agenda #:
2.-L.
On November 14,2024,the Developer informed staff that an extension was necessary to secure the
full financing needed to move forward with the project.The requested 12-month extension will allow
the Developer the time necessary to secure the required financing and ensure key milestones are
met.If approved,construction is expected to commence in July 2026,with an estimated completion
by December 2027.
ENVIRONMENTAL FINDINGS
On,or about,June 25,2021,the applicant requested a Streamlined Ministerial Approval of the
project pursuant to Government Code section 65913.4.As a ministerial approval,the Planning and
Development Department determined that the project as described is exempt from the California
Environmental Quality Act (CEQA) under Sections 15268 and 15300.1 of the CEQA Guidelines
FISCAL IMPACT
Approval of this amendment extends a commitment of funds previously obligated and appropriated
through the Local Housing Trust Fund in Fiscal Year 2025.
Attachment:
First Amendment Avalon Commons Phase II Agreement
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City of Fresno
Staff Report
2600 Fresno Street
Fresno, CA 93721
www.fresno.gov
File #:ID 25-28 Agenda Date:1/30/2025 Agenda #:
2.-M.
REPORT TO THE CITY COUNCIL
FROM:JENNIFERCLARK, Director
Planning & Development Department
PHIL SKEI, Assistant Director
Planning & Development Department
BY:MAYRA MERINO, Senior Management Analyst
Planning & Development Department
SUBJECT
Approve the First Amendment to State and Local Fiscal Recovery Funds Econo North Apartments
Agreement with Better Opportunities Builder, Inc., an affiliate of the Housing Authority of the City of
Fresno, to extend the project schedule beyond 180 cumulative days. (District 3)
RECOMMENDATION
Staff recommends that the City Council approve the First Amendment to the Econo North Apartments
Agreement with Better Opportunities Builder, Inc., an affiliate of the Housing Authority of the City of
Fresno, to extend the project schedule beyond 180 cumulative days.
EXECUTIVE SUMMARY
The Econo North Apartments project involves the conversion and rehabilitation of the former Econo
Inn Motel into a 25-unit apartment complex. The First Amendment to the Agreement proposes a 19-
month extension to the project timeline, allowing additional time to secure full financing. This
extension is necessary due to unforeseen delays in financing and will facilitate the project’s progress
toward completion.
BACKGROUND
On June 15, 2023, the City Council approved the State and Local Fiscal Recovery Funds (Part of the
American Rescue Plan Act) Agreement with Better Opportunities Builder, an affiliate of the Housing
Authority of the City of Fresno (Developer), for the conversion and rehabilitation of the former Econo
Inn Motel into a 25-unit affordable multifamily housing project. The project was initially scheduled to
begin construction in August 2023; however, it encountered unforeseen financing delays.
The Developer notified staff on October 29, 2024, that an extension was necessary to secure the full
funding required for the project. The requested extension is crucial to enable the developer to secure
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File #:ID 25-28 Agenda Date:1/30/2025 Agenda #:
2.-M.
funding required for the project.The requested extension is crucial to enable the developer to secure
the necessary funding to complete the project.Staff is in ongoing communication with the developer
to track progress and ensure that new financing milestones are met.If approved,construction will
commence in March 2025 and is projected to be completed by July 2026.
ENVIRONMENTAL FINDINGS
This action is not considered a project under the California Environmental Quality Act (CEQA)
Guidelines Section 15378.
FISCAL IMPACT
There is no Fiscal impact to the City’s General Fund as a result of this action.
Attachment:
First Amendment to Econo North Apartments Agreement
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363761v2
FIRST AMENDMENT TO AGREEMENT
THIS FIRST AMENDMENT TO AGREEMENT (Amendment) made and entered
into effect the _____ day of ____________, 2025, (Effective Date) by and between the
City of Fresno, a California municipal corporation (City), and Better Opportunities Builder
Inc., a California non-profit public benefit corporation (Developer).
RECITALS
WHEREAS, the City and Developer entered into a State and Local Fiscal Recovery
Funds (SLFRF) (Part of the American Rescue Plan) Agreement (Agreement), effective
June 15, 2023, to develop the former Econo Inn Motel into a 25-unit apartment complex,
and on-site and off-site improvements and amenities (Project) of which 12 units will be
SLFRF assisted units preserved as Very Low- and Low-Income rental housing; and
WHEREAS, due to a delay in obtaining full financing for the Project, the City and
Developer now desire to revise the Project Schedule in Agreement, beyond 180 days, to
accurately reflect the projected timelines.
AGREEMENT
NOW, THEREFORE, in consideration of the above recitals, which recitals are
contractual in nature, the mutual premises herein contained, and for other good and
valuable consideration hereby acknowledge, the parties agree that the aforesaid
Agreement be amended as follows:
1. Exhibit “B” of the Agreement (Project Description, Income Levels, Schedule)
is deleted in its entirety and replaced with “Revised Exhibit B” that is attached and
incorporated by this reference.
2. All references to Exhibit “B” in the Agreement shall be deemed references
to “Revised Exhibit B”.
3. In the event of any conflict between the body of this Amendment and any
Exhibit or Attachment hereto, the terms and conditions of the body of this Amendment
shall control and take precedence over the terms and conditions expressed within the
Exhibit or Attachment. Furthermore, any terms or conditions contained within any Exhibit
or Attachment hereto which purport to modify the allocation of risk between the Parties,
provided for within the body of this Amendment, shall be null and void.
4. Except as otherwise provided herein, the Agreement entered into by the
City and the Developer on June 15, 2023, remains in full force and effect.
[SIGNATURE PAGE TO FOLLOW]
Docusign Envelope ID: D29D011F-5428-4C97-8A09-C247CA882BF8
363761v2
IN WITNESS WHEREOF, the parties have executed this Amendment in Fresno,
California, the day and year first above written.
CITY OF FRESNO,
a California municipal corporation
By: _______________________
Georgeanne A. White
City Manager
Date: _____________________
APPROVED AS TO FORM:
ANDREW JANZ
City Attorney
By: _______________________
Brent Richardson
Deputy City Attorney
Date: _____________________
ATTEST:
TODD STERMER, CMC
City Clerk
By: ______________________
Name: Date
Deputy
Date: _____________________
BETTER OPPORTUNITIES BUILDER, INC.,
a California non-profit public benefit corporation
By: _____________________________
Tyrone Roderick Williams
Secretary/Director
Attachments:
Revised Exhibit B – PROJECT DESCRIPTION, INCOME LEVELS, SCHEDULE
Docusign Envelope ID: D29D011F-5428-4C97-8A09-C247CA882BF8
1/6/2025
REVISED EXHIBIT B
PROJECT DESCRIPTION, INCOME LEVELS, SCHEDULE
I. PROJECT DESCRIPTION
The Econo North Apartments (Project) consists of the conversion/rehabilitation of the former
Econo Inn Motel into a 25-unit apartment complex, and on-site and off-site improvements
and amenities. Of the 25 units in the Project, 12 will be SLFRF-assisted units reserved for
Very Low to Low-income households earning 185% of the Federal Poverty Guidelines for
Household size, approximately 50% to 60% of Area Median Income(AMI). The Project site is
located 1840 Broadway Street, Fresno, CA 93728 (APNs: 466-191-10).
SLFRF-FUNDED FLOATING UNITS
% of AMI Unit
50% or less 3
60% or less 9
Totals 12
SLFRF Funds will be made available by the CITY for payment of SLFRF eligible rehabilitation
costs not to exceed One Million Nine Hundred Thousand Dollars and 00/100
($1,900,000.00), the aggregate SLFRF for the 12 floating SLFRF-assisted Units as
determined by the CITY, as needed, for SLFRF eligible project construction costs.
II. PROJECT SCHEDULE
A. Commencement of Construction: March/April 2025
B. Completion of Construction: June/July 2026
C. Rent Up Completion: October/November 2026
II. INCOME LEVEL
Up to 185% for Household Size
Federal Poverty Levels 2024
HH Size 100% 125% 130% 138% 150% 185%
1 15,060.00 18,825.00 19,578.00 20,782.80 22,590.00 27,861.00
2 20,440.00 25,550.00 26,572.00 28,207.20 30,660.00 37,814.00
3 25,820.00 32,275.00 33,566.00 35,631.60 38,730.00 47,767.00
4 31,200.00 39,000.00 40,560.00 43,056.00 46,800.00 57,720.00
5 36,580.00 45,725.00 47,554.00 50,480.40 54,870.00 67,673.00
6 41,960.00 52,450.00 54,548.00 57,904.80 62,940.00 77,626.00
7 47,340.00 59,175.00 61,542.00 65,329.20 71,010.00 87,579.00
8 52,720.00 65,900.00 68,536.00 72,753.60 79,080.00 97,532.00
Each additional
person 5,380.00 6,725.00 6,994.00 7,424.40 8,070.00 9,953.00
3139552v1 / 18621.0003
City of Fresno
Staff Report
2600 Fresno Street
Fresno, CA 93721
www.fresno.gov
File #:ID 25-122 Agenda Date:1/30/2025 Agenda #:
2.-N.
REPORT TO THE CITY COUNCIL
FROM:GEORGEANNE A. WHITE, City Manager
Office of the Mayor & City Manager
THROUGH:JENNIFER K. CLARK, Director
Planning and Development Department
BY:LUPE PEREZ, Project Liaison, Downtown
Planning and Development
SUBJECT
Approve a Second Amendment to the Disposition and Development Agreement between Metro
Hospitality Services, Inc., and City of Fresno to extend the construction schedule for the Courtyard by
Marriott Hotel in Downtown Fresno located at the northeast corner of Inyo and M Street (District 3)
City of Fresno Printed on 2/7/2025Page 1 of 1
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1-30-2025
MA/AP 6-0
DISTRICT 5 (VACANT) ABSENT
APPROVED ON CONSENT
REPORT TO THE CITY COUNCIL
FROM: GEORGEANNE A. WHITE, City Manager
Office of the Mayor & City Manager
THROUGH: JENNIFER K. CLARK, Director
Planning and Development Department
BY: LUPE PEREZ, Project Liaison, Downtown
Planning and Development
SUBJECT
..Title
Approve a Second Amendment to the Disposition and Development Agreement between Metro
Hospitality Services, Inc., and City of Fresno to extend the construction schedule for the Courtyard by
Marriott Hotel in Downtown Fresno located at the northeast corner of Inyo and M Street (District 3)
..Body
RECOMMENDATION
Staff recommends Council consider approval of a Second Amendment to the Disposition and
Development Agreement (DDA) between Metro Hospitality Services, Inc. (Developer) and City of
Fresno (City) to extend certain performance deadlines. The newly proposed Completion of
Construction deadline is September 30, 2025, and the Certificate of Completion deadline is December
31, 2025. Staff recommends authorizing the City Manager to administratively extend the performance
deadlines, upon a determination of good cause, for up to 180 days without further Council approval.
EXECUTIVE SUMMARY
The City owned a parcel of land at the northeast corner of Inyo and M Streets in downtown Fresno
abutting the Convention Center. In 2017, the Developer submitted a Letter of Interest (LOI) to develop
a hotel on the site. Subsequently, the Developer and the City agreed to a DDA on December 18, 2017,
to develop a 200-room hotel branded as either a Hilton or Marriott.
On March 14, 2022, a First Amendment to the DDA extended certain deadline s in the performance
schedule and reduced the 200-room hotel to reflect a 144-room hotel, branded as a Courtyard by
Marriott. This extension was granted due to residual supply chain disruptions stemming from the
pandemic. The First Amendment extended Completion of Construction to December 31, 2024 , and
Certificate of Completion to March 31, 2025. Generally, the project includes the construction of a 144-
room hotel with guest rooms on the 2nd to 5th floors and construction of a swimming pool, fitness
center, meeting rooms, lounge, bar/bistro, and back of house on the 1 st floor.
On January 10, 2025, the Developer submitted a request for a one-year extension of the DDA due to
significant construction delays due to unforeseen weather conditions as described in their request
(attached). The Second Amendment proposes extending the deadline for Completion of Construction
to September 30, 2025, the Certificate of Completion to December 31, 2025, and authorizes the City
Manager to administratively extend the performance deadlines, upon determination of good cause, for
up to 180 days without further Council approval.
BACKGROUND
For more than 25 years, the idea of a new hotel has been considered to meet the need for
accommodations for conventions, events, and visitors to the city and downtown area. Th e planned
hotel will be located on land owned by the City that abuts the Convention Center and is across from
the Fresno Sports and Entertainment facilities, which include the Saroyan Theater, Valdez Hall, and
Selland Arena.
The City and Developer signed a DDA on December 18, 2017, to build a downtown hotel branded as
either Hilton or Marriott on this site. The First Amendment extended the Developer's performance
schedule and reduced the number of rooms from 200 to 144.
The Developer has requested an extension of the performance schedule d ue to construction schedule
delays resulting from unforeseen and severe wet weather conditions during 2022 and 2023, and supply
chain disruptions. The City of Fresno experienced record-breaking rainfall from late 2022 through early
2023, leading to widespread flooding and significant disruptions at the construction site. This
continuous wet weather made it difficult to perform essential tasks like ex cavation, foundation work,
and pouring concrete. In December 2023, another period of substantial rainfall further delayed
construction activities, affecting site access, supply chain materials and equipment deliveries.
Construction of the hotel is making steady progress. The building's exterior is now ready for lath and
plaster, the switchgear and transformer were installed, and the project is scheduled with PG&E to
energize the building, enabling interior work to begin. The approval of this extension will allow the
Developer to manage the weather-related construction delays and uphold construction quality and
safety standards to successfully complete the hotel project.
ENVIRONMENTAL FINDINGS
This amendment is not a project subject to CEQA.
LOCAL PREFERENCE
Local preference is not applicable.
FISCAL IMPACT
There is no fiscal impact.
Attachments:
2nd Amendment to the Disposition and Development Agreement with Metro Hospitality
Page 1 of 4
401565v2
RECORDING REQUESTED BY:
City of Fresno
No Fee-Gov’t. Code Sections
6103 and 27383
WHEN RECORDED, MAIL TO:
City of Fresno
2600 Fresno Street
Fresno, CA 93721
Attention: City Manager
______________________________________________________________________
(SPACE ABOVE THIS LINE FOR RECORDER'S USE)
SECOND AMENDMENT TO DISPOSITION AND DEVELOPMENT AGREEMENT
by and between
CITY OF FRESNO,
a municipal corporation
and
METRO HOSPITALITY SERVICES, INC.
M and Inyo Streets
Courtyard By Marriot Downtown Fresno
Fresno, California 93721
Page 2 of 4
401565v2
SECOND AMENDMENT TO
DISPOSITION AND DEVELOPMENT AGREEMENT
THIS SECOND AMENDMENT TO DISPOSITION AND DEVELOPMENT
AGREEMENT (Second Amendment) is entered as of ____________, 2025 (Effective
Date), between the CITY OF FRESNO, a municipal corporation, (City) and METRO
HOSPITALITY SERVICES, INC. (Developer).
RECITALS
A. WHEREAS, the parties entered into a Disposition and Development
Agreement (the Agreement) effective December 18, 2017, and recorded on December 21,
2017, as Document Number 2017-0164954 in the Office of the Fresno County Recorder;
and
B. WHEREAS, the Agreement set forth terms and conditions for Developer to
purchase the Property from the City and develop it privately as a Hilton or Marriott multi-
story hotel with 200 rooms; and
C. WHEREAS, the parties entered into a First Amendment to the Agreement
(First Amendment) to extend certain deadlines in the performance schedule and reduce the
200-room hotel to reflect a 144-room hotel on March 14, 2022, and recorded on June 3,
2022, as Document Number 2022-0074161 in the Office of the Fresno County Recorder;
and
D. WHEREAS, the parties wish to amend the terms of the Agreement to further
extend deadlines in the performance schedule due to significant construction delays due to
unforeseen weather conditions, and supply chain delivery disruption.
NOW, THEREFORE, BE IT RESOLVED, that the parties hereby amend the terms
of the Agreement as follows:
1. The Performance Schedule (Revised Exhibit “C” attached to the First
Amendment) is hereby deleted in its entirety and replaced with the “Revised Exhibit “C” –
Second Amendment” attached hereto.
2. The City Manager is authorized to administratively extend the deadlines
contained in the Performance Schedule for up to 180 days upon a determination of good
cause.
3. Capitalized terms used herein and not otherwise defined shall have the
meaning given to such terms in the Agreement.
4. Except as expressly set forth herein, the terms and conditions of the
Agreement shall remain in full force and effect.
5. In the event of a conflict between this Second Amendment and the
Agreement, the terms of this Second Amendment shall control.
[SIGNATURE PAGE TO FOLLOW]
Page 3 of 4
401565v2
IN WITNESS WHEREOF, City and Developer have signed this Amendment effective
as of the date first above written.
CITY OF FRESNO,
a municipal corporation
By:
Georgeanne A. White,
City Manager
(Attach notary certificate of acknowledgment)
APPROVED AS TO FORM:
ANDREW JANZ
City Attorney
By:
Date Tracy N. Parvanian
Assistant City Attorney
ATTEST:
TODD STERMER, CMC
City Clerk
By:
Deputy
METRO HOSPITALITY SERVICES, INC.
By:
Tehal Thandi,
President and Secretary
(Attach notary certificate of acknowledgment)
Attachment:
Revised Exhibit “C” – Second Amendment – Performance Schedule
Page 4 of 4
401565v2
REVISED EXHIBIT “C” – SECOND AMENDMENT
Performance Schedule effective January 30, 2025
Items Completed Time for Performance Completion Date
City of Fresno City Council consideration
of Disposition and Development
Agreement (DDA)
Completed
Execution of DDA Within fifteen days after
approval of DDA by City
Council and receipt and
approval of insurance
certificates and receipt of
executed documents from
Developer.
Completed
Escrow Opens Within three days following the
effective date of the DDA
Submission of Building Plans for
Planning and Building Review
Completed
Escrow Closes Within thirty days of approval of
all land use and other
entitlements, permits, and
approvals that City or any other
governmental agency with
jurisdiction over the Project
requires for construction of the
Project.
Completed
Commencement of Construction of
Developer’s Improvements. Within thirty
days after receipt of building permits by
the Developer, construction shall
commence on the improvements to be
constructed on the Project Site.
Completed
Substantial Completion of Construction
of Developer’s Improvements. The
Developer shall substantially complete
construction of the improvements to be
constructed on the Project Site.
September 30,
2025
Issuance – Certificate of Completion.
City shall furnish the Developer with a
Certificate of Completion on the Project.
Promptly after completion of all
construction and upon written
request thereof by the
Developer.
December 31,
2025
Request for DDA Extension Due to
Weather-Related Construction Delays
To: City of Fresno Attn: Georgeanne WhiteDate: Jan 10, 2025 Subject: Request for Extension on Current DDA for Downtown Fresno Project
Project Overview
Project Name: Courtyard By Marriot Downtown Fresno
Project Address: 808 M Street, Fresno, CA 93721
Requested Extension Period: 1 year
Background The Downtown Fresno Project has encountered significant delays due to unforeseen weather conditions. We seek an extension on our current DDA to accommodate these delays and ensure the successful completion of the project.
Weather Impact Overview
End of 2022: From October to December 2022, Fresno experienced unprecedented rainfall due to a series of atmospheric river events. This period saw record-breaking precipitation, leading to widespread flooding and saturation of construction sites. The National Weather Service recorded up to 3 inches of rain in Fresno during late December alone, contributing to severe disruptions in construction schedules.
Early 2023: The heavy rains continued into the first quarter of 2023, with January marked by several intense storms. These events further worsened delays, as saturated ground conditions and persistent wet weather made it challenging to proceed with critical construction tasks such as excavation, foundation work, and concrete pouring.
End of 2023: December 2023 brought another bout of significant rainfall. The persistent wet conditions throughout this period again delayed construction activities, impacting site access, material deliveries, and overall project timelines.
---
Specific Delays and Challenges
1.Excavation and Foundation Work:
•Waterlogged conditions prevented the timely completion of excavation andfoundation tasks.
•The need to constantly pump out water from the construction site led to increasedlabor and equipment costs.
2.Concrete Pouring:
•Wet conditions delayed concrete pouring schedules, which are highly sensitive toweather.
•Several scheduled pours had to be postponed, causing cascading delays acrosssubsequent project phases.
3.Site Access and Logistics:
•Flooded roads and access points hampered the delivery of materials and movementof equipment.
•Additional resources were required to manage and mitigate these logisticalchallenges.
Request for Extension Given the unexpected and severe weather events that have significantly impacted our construction schedule, we respectfully request an extension of 1 year on our current DDA. This extension will allow us to accommodate the delays caused by weather, ensure the quality and safety of construction, and successfully complete the Downtown Fresno Project. We appreciate your understanding and cooperation in this matter. Please let us know if you require any additional information or documentation to process this request.
Current Project StatusThe Downtown Fresno Marriott project is progressing steadily, with the building now prepared for lath and plaster on the exterior. Inside, drywall installation is underway, marking significant progress on interior finishes. The switchgear has already been installed, and we are on PG&E's schedule for the transformer hookup, which will provide power to the site. From this stage, we typically anticipate obtaining occupancy permits within 6 to 8 months. Considering the current pace and unforeseen delays, a 1-year extension on the Disposition and Development Agreement (DDA) should provide adequate time to complete the project and address any remaining contingencies.
Thank you for your consideration. Sincerely, Randeep Dhillon Metro Hospitality Services, Inc
City of Fresno
Staff Report
2600 Fresno Street
Fresno, CA 93721
www.fresno.gov
File #:ID 25-63 Agenda Date:1/30/2025 Agenda #:
2.-O.
CITY COUNCIL
FROM:JENNIFER CLARK, Director
Planning and Development Department
PHILIP SKEI, Assistant Director
Planning and Development Department
BY:JENNIFER DAVIS, Senior Management Analyst
Housing Finance Division
SUBJECT
***RESOLUTION - Authorizing the submission of a grant application and acceptance of funds from
the California Department of Housing and Community Development’s 2024 Homeownership Super
NOFA for funding under the CalHome Program for Homebuyer Mortgage Assistance, and authorizing
the City Manager or designee to sign all necessary implementing documents (Subject to Mayor’s
Veto)
RECOMMENDATION
Staff recommends approval of a Resolution authorizing the submission of a grant application to and
acceptance of grant funds from the California Department of Housing and Community Development’s
2024 Homeownership Super NOFA for funding under the CalHome Program for use as Homebuyer
Mortgage Assistance and authorizing the City Manager or designee to sign all necessary
implementing documents.
EXECUTIVE SUMMARY
On December 12, 2024, the California Department of Housing and Community Development (HCD)
issued a 2024 Homeownership Super NOFA, offering approximately $176.8 million in total grant
funds, with $143.1 million specifically allocated for the CalHome Program. As an eligible Local Public
Entity, the City of Fresno may apply for up to $5 million in CalHome Program funds to support
homeownership programs for lower and very low-income households. If awarded, the City will use
the funds to provide mortgage assistance loans of up to $100,000 per household for eligible first-time
homebuyers whose income does not exceed 80% of the area median income for Fresno County.
BACKGROUND
The California Department of Housing and Community Development (HCD), under California
Assembly Bill 434 (AB 434) (Chapter 192, Statutes of 2020), issued the 2024 Homeownership Super
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File #:ID 25-63 Agenda Date:1/30/2025 Agenda #:
2.-O.
Assembly Bill 434 (AB 434)(Chapter 192,Statutes of 2020),issued the 2024 Homeownership Super
Notice of Funding Availability (HOSN),on December 12,2024.The HOSN provides approximately
$176.8 million in total funding,with $143.1 million designated for the CalHome Program.HCD offers
funding to a Local Public Entity,Local Public Agency,Tribal Entity,and Nonprofit Corporation,under
the CalHome Program Final Guidelines,as established by Chapter 6 (commencing with Section
50650)of Part 2 of Division 31 of the Health and Safety Code.The CalHome Program supports
homeownership programs aimed at lower and very low-income households through grants to local
public agencies and nonprofit organizations for direct first-time homeowner assistance.
The City of Fresno (City)as an eligible Local Public Entity,intends to apply for $5 million in CalHome
Program funds to support homeownership programs for lower and very low-income households.If
awarded,the City will provide up to $100,000 in mortgage assistance loans to approximately 50
eligible first-time homebuyers whose income does not exceed 80%of the area median income for
Fresno County.The CalHome loan will be provided as a second mortgage loan at zero percent
interest,secured with a Deed of Trust recorded on the property,and subordinated to the primary
mortgage.All homebuyers will attend a City-approved counseling program covering finance,
maintenance,and consumer awareness to ensure a successful and sustainable homeownership
experience.
Authorizing the submission of the grant application and acceptance of up to $5 million in CalHome
Program funds will enable the City to assist approximately 50 eligible households with homebuyer
assistance,moving the City closer to achieving the housing goals outlined in the City’s Housing
Element and the Mayor’s “One Fresno Housing Strategy.”These efforts will address critical housing
needs,promote economic development,and enhance equity and sustainable homeownership in
underserved communities.
If awarded,the CalHome Program funds will help the City’s objectives to increase homeownership,
encourage neighborhood revitalization,maximize the use of existing homes,foster community
stability, and promote equity in homeownership.
ENVIRONMENTAL FINDINGS
By the definition provided in the California Environmental Quality Act Guidelines Section 15378(b)(4)-
(5)this item does not qualify as a “project”and is therefore exempt from the California Environmental
Quality Act requirements.The proposed action to apply for,accept,and administer grants are the
“creation of government funding mechanisms or other government fiscal activities which do not
involve any commitment to any specific project which may result in a potentially significant physical
impact on the environment”as well as “organizational or administrative activities of government
which will not result in direct or indirect physical changes to the environment.”
LOCAL PREFERENCE
Local preference is not applicable as this resolution and associated acceptance of funds do not
involve a bid or award of a construction or services contract.
FISCAL IMPACT
There is no impact on the City’s General Fund as a result of this action.If awarded,all funds will be
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There is no impact on the City’s General Fund as a result of this action.If awarded,all funds will be
included in the Planning and Development FY2026 budget. No local match is required for this award.
Attachment:
Resolution to Apply 2024 CalHome Award
City of Fresno Printed on 2/7/2025Page 3 of 3
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City of Fresno
Staff Report
2600 Fresno Street
Fresno, CA 93721
www.fresno.gov
File #:ID 25-127 Agenda Date:1/30/2025 Agenda #:2.-P.
REPORT TO THE CITY COUNCIL
FROM:MINDY CASTO, Interim Chief of Police
Police Department
BY:MARK SALAZAR, Deputy Police Chief
Investigations Division
SUBJECT
Actions pertaining to the 2025 Law Enforcement Specialized Unit Program:
1. ***RESOLUTION - Adopt a Resolution authorizing acceptance of $203,142 in grant funding
from the California Governor’s Office of Emergency Services’ Law Enforcement Specialized
Unit Program for the Fresno Police Department’s Domestic Violence Unit 2025 Law
Enforcement Specialized Unit Program (Subject to Mayor’s veto)
2. ***RESOLUTION - Adopt the 36th Amendment to the Annual Appropriation Resolution No.
2024-122 to appropriate $101,600 in Law Enforcement Specialized Unit Program Grant
funding for the Police Department’s Domestic Violence Unit (Requires 5 Affirmative Votes)
(Subject to Mayor’s Veto)
3. Approve a Memorandum of Understanding with Marjaree Mason Center, Inc. for the total grant
amount not to exceed $138,662
4. Authorize the Chief of Police to sign the Memorandum of Understanding with Marjaree Mason
Center Inc., on behalf of the City
RECOMMENDATION
Staff recommends that Council adopt a resolution for the acceptance of $203,142 in grant funding
from the California Governor’s Office of Emergency Services (CalOES) Law Enforcement Specialized
Unit (LE) Program for the Fresno Police Department’s Domestic Violence (DV) Unit within the Family
Justice Bureau (Domestic Violence grant); approve a Memorandum of Understanding (MOU) with the
Marjaree Mason Center (MMC) as identified in the LE Program grant agreement; and authorize the
Chief of Police to enter into and execute the agreements, amendments, extensions and modifications
and all required documents.
EXECUTIVE SUMMARY
The City of Fresno has been awarded grant funds of $203,142 from CalOES to augment the current
capabilities of the DV Unit. This award is subject to a special condition that the funds cannot be
expended until CalOES has access to funds through the applicable FY 2024 Federal Award. The
grant period is from January 1, 2025, to December 31, 2025. The goal of the LE Program grant is to
work in partnership with Marjaree Mason Center (MMC) for the purpose of providing maximum
available assistance for victims of domestic violence and their children within the City of Fresno. The
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available assistance for victims of domestic violence and their children within the City of Fresno.The
program will continue to allow for funding for the two victim advocates co-locating in the Domestic
Violence Unit.This will meet the need for immediate response to victims and their families and
provide resources to them as soon as law enforcement is notified of the incident.The grant funds will
be used to fund the current victim advocates assigned to the unit and enhance the DV Unit by
addressing violence against victims through investigation,immediate response,immediate victim
advocacy, and training for law enforcement officers.
BACKGROUND
In 2023 and 2024,the Domestic Violence Unit handled 10,616 and 9,369 cases,respectively.We
believe we will serve over 10,000 in 2025.The Domestic Violence grant will allow us to expand our
current capacity in response to victims and their children.With this funding,we will continue to
provide two domestic violence victim advocates.With two advocates the City will allow advocate
coverage for evening hours and weekends.The advocates will be assigned to the field and respond
with patrol officers to calls for service related to domestic violence.By creating this quick response,
victims will feel as though they have instantaneous help and reassurance that law enforcement cares
and is doing everything possible to support them.
Additionally,victims of domestic violence and their children will have immediate resources available
through the MMC,such as emergency housing,provided crisis intervention,advocacy,support
groups,counseling,legal advocacy,24-hour crisis hotline,survival skills,legal options classes,and
referrals.This grant program will allow us to continue expanding our capabilities as an agency to
reach out to all victims and ensure that services are offered and encouraged for all victims.
The MOU with the MMC has been reviewed and approved by the City Attorney’s Office.
ENVIRONMENTAL FINDINGS
By definition of the California Environmental Quality Act (CEQA)Guidelines Section 15378,this
action of these items does not qualify as a project as defined by the CEQA.
LOCAL PREFERENCE
Local preference was not implemented; however, MMC is a local business.
FISCAL IMPACT
There will be no net impact on the general fund.The remaining grant funds received will be
appropriated in FY 26.The grant provides full cost recovery for all operations,training and supplies
for this program.Advocates hired by the Marjaree Mason Center are contracted for the one-year
performance period of the grant.At the conclusion,they will return to MMC to work on other projects.
Expenses will be claimed and reimbursed on a quarterly basis.This funding will enable the Fresno
Police Department to enhance its current capabilities and response to victims of domestic violence
within the City of Fresno.
Attachments:
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File #:ID 25-127 Agenda Date:1/30/2025 Agenda #:2.-P.
Grant Agreement
Resolution
36th Annual Appropriation Resolution No. 2024-122
Memorandum of Understanding - Marjaree Mason Center
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GAVIN NEWSOM
GOVERNOR
NANCY WARD
DIRECTOR
3650 SCHRIEVER AVENUE, MATHER, CA 95655
(916) 845-8506 TELEPHONE (916) 845-8511 FAX
www.CalOES.ca.gov
January 7, 2025
Mark Salazar DELIVERED VIA E-MAIL: Mark.Salazar@fresno.gov
Deputy Police Chief
City of Fresno Police Department
P.O. Box 1271
Fresno, CA 93715-1271
Dear Mark Salazar:
Your proposal has been selected to receive funding through the Law
Enforcement Specialized Units Program of the California Governor’s Office of
Emergency Services (Cal OES). Provided there are no successful appeals, and
pending completion and/or revision of all required application forms, your
agency will be awarded the amount of $203,142 for the Grant Subaward
performance period beginning January 1, 2025, and ending December 31, 2025
Please log in to Grant Central System to see all required revisions and/or contact
the assigned Grants Analyst with questions.
Emily Garcia will be the Program Specialist assigned to your Grant Subaward
and will be contacting you within the next few weeks to assist you in finalizing
this process. Additional information can be found in the Subrecipient Handbook
on the Cal OES website at www.caloes.ca.gov.
We look forward to the successful implementation of this project. If you have
any questions concerning this process, please contact Emily Garcia at
Emily.Garcia@caloes.ca.gov.
Sincerely,
CINDY BERTA
Chief, Law Enforcement Unit
Application Information Form
FRESNO
Primary Location of Proj ect/Services
Address
2323 Mariposa Mall
Address 2
Program:
Law Enforcement Specialized Units - LE24
Grant Subaward Performance Period:
01/01/2025 to
12/31/2025
Subrecipient:
City of Fresno - Police Department
Subrecipient UEI:
ELPGKCJ7DJK7
Subrecipient Federal Employer ID:
94-6000338
Implementing Agency:
City of Fresno - Police Department
Payment Address
PO BOX 1271
California
Fresno County
93715-1271
City:
Fresno
County:
Fresno County
Zip Code:
93721-3620
Applications LE24023501
Contact Information Form
Navigation Instructions:
All required fields are marked with an *.
Use the SAVE button at least every 30 minutes to avoid losing data.
When done, click the SAVE button.
Form Spe cific Instructions:
Individuals identified below will be the official points of contact for the Grant Subaward. For descriptions of these positions see Subrecipient Handbook Section 3.005 or other applicable Program Supplemental
guidance.
The Grant Subaward Director and Financial Officer cannot be the same individual.
Each individual must have a unique email address.
Organization Authorized Agents must be denoted as being a Grant Subaward Authorized Agent in order to submit the application.
Grant Subaward Con tacts
Grant Subaward Dire ctor
First Name:Last Name:
Title:
Phone:Email:mark.salazar@fresno.gov
Address:PO BOX 1271
City:State:Zip Code:
Financial Office r
Name:Last Name:Wooten
Title:Business Manager
Phone:Email:michelle.wooten@fresno.gov
Address:
City:State:Zip Code:93721-3620
Programmatic Point of Contact:
Name:Last Name:Taylor
Title:
Phone:Email:mary.taylor@fresno.gov
Address:PO BOX 1271
City:State:Zip Code:
Financial Point of Contact:
Name:Last Name:Villarreal
Title:
Phone:Email:anita.villarreal@fresno.gov
Address:2323 Mariposa
City:State:Zip Code:
Chair of the Gov e rning Body
Name:Last Name:Perea
Title:
Phone:Email:
Address:2600 Fresno Street
City:State:Zip Code:93721-3620
Grant Subaward Authorize d Age nt
Michelle Wooten
Mark Salazar
Deputy Police Chief
(559) 621-2401
FRESNO California 93721-3620
Michelle
(559) 621-2053
2323 Mariposa Mall
Fresno CA
Mary
Police Officer/Detective
(559) 621-2628
Fresno CA 93721-3620
Anita
Management Analyst II
(559) 621-2305
Fresno Fresno 93721-3620
AnnaLisa
City Council President
(559) 621-8000 annalisa.perea@fresno.gov
Fresno CA
Applications LE24023501
Grant Subaward Assurances Form
Applicab le Grant Subaward Assuran ces
This document is a binding affirmation that the Subrecipient will comply with the assurances required by the federal program/fund source.
Assurance Acknowledgement
Federal Fund Grant Subaward Assurances - 2024 STOP.pdf [X]*
Program Standard Assurance Addendum [X]*
Standard Certification of Compliance [X]*
Subrecipients expending $1,000,000 or more in federal funds annually must comply with the single audit requirement established by the Federal Office of Management and Budget (OMB)
Uniform Guidance 2 CFR Part 200, Subpart F and arrange for a single audit by an independent Certified Public Accountant (CPA) firm annually. Audits conducted under this section will be
performed using the guidelines established by the American Institute of Certified Public Accountants (AICPA) for such audits. *
In the preceding year, did the Subrecipient receive:
Has the Subrecipient received $25,000,000 or more in federal funds in the preceding fiscal years? *
[X]Subrecipient expends $1,000,000 or more in federal funds annually.
Subrecipient does not expend $1,000,000 or more in federal funds annually.
Federal Funding Accounting and Transparency Act (FFATA)
Yes [X]No
Applications LE24023501
Programmatic Narrative Form
Narrative Questions/Respon ses
Question 1
Describe the department’s history of involvement and collaboration with domestic violence service providers in the department’s jurisdiction.
The Marjaree Mason Center is the main domestic violence service provider in Fresno County. They have been an independent non-profit organization since 1996. In the early 2000s,
the Fresno Police Department began housing domestic violence advocates near our Domestic Violence Unit detectives’ offices within the Fresno Police Department Family Justice
Bureau. This has given the advocates immediate access to victims and families involved in domestic violence through Fresno Police Department reports. This also allows detectives
to readily connect victims to advocates even if the victim previously did not want advocacy services. Marjaree Mason Center advocates also share information about available
advocacy services that is then distributed among law enforcement personnel. The Fresno Police Department Domestic Violence Unit works hand-in-hand with the Marjaree Mason
Center advocates on a daily basis.
Question 2
Describe the need for expansion of collaborative efforts with domestic violence service providers in the department’s jurisdiction.
The two Marjaree Mason Center advocates housed at the Fresno Police Department are and have been funded by previous Cal OES grants. On a daily basis, they follow up with
individuals identified as victims of domestic violence in police reports, providing them with services and options. They are also readily available to assist detectives when requested
upon, which is usually for more serious cases. Additionally, advocates also assist detectives in sharing relevant updates to patrol officers. Receiving the Cal OES Grant once again this
year will allow for our advocates to continue to do their work they have so diligently done in past years and expand to first-time documented victims that will come through the Domestic
Violence Unit in 2025. Domestic violence is a complex crime with the relationships heavily influenced by components found on the power and control wheel. Therefore, often times
victims of domestic violence are not identified to law enforcement until the violence has already taken place multiple times. As domestic violence victims are first identified, it is
imperative that the Fresno Police Department continue to pursue the criminal aspect while ensuring victims and their families continue to gain the support through the Marjaree Mason
Center advocacy to hopefully not become a repeat victim.
Question 3
Describe the need for a more effectively coordinated response to domestic violence victims in the department’s jurisdiction.
In 2023, the Fresno Police Department implemented a lethality assessment questionnaire. This questionnaire is used by law enforcement departments across the nation. The questions
are to be asked to screen the potential risk of lethality among victims of domestic violence. The questions are provided to patrol officers on a 3x5 card. The answers to the questions are
documented in the incident report. The answers also dictate if an advocate while officers are still on scene of the call for service. We will continue training new officers on conducting the
lethality assessment when responding to domestic violence related calls for service. We will also continue to ensure the lethality assessment is conducted on all domestic violence related
calls, even if there is not person-on-person violence. This will ensure victims of domestic violence related property, financial, and other types of crimes are also readily offered access to
advocates.
Question 4
Describe the absence of, or improvement needed, regarding advocacy for victims of domestic violence and their children in the department’s jurisdiction.
Many times, when patrol officers are on scene, they will request the response of a domestic violence advocate or make a referral so the victim can be contacted at a later time.
Domestic violence is a complex crime in which often, victims do not want to speak with an advocate. Detectives and advocates will attend patrol officer briefings to educate the officers
on specific services available through Marjaree Mason Center and other resources. With this information, patrol officers can provide some information as they are already on scene
with the victim. This information may encourage victims to inquire further or decide to ultimately speak with an advocate. By detectives and advocates attending patrol briefings and
sharing this information, we will be making an improvement in the knowledge patrol officers carry with them into each call and the likelihood of a victim deciding to speak to a
designated advocate.
Question 5
Describe the need for revised, expanded, or the initial development of protocols for ensuring a consistent and appropriate response by officers to violations of protective orders to
ensure victim/survivor safety in ongoing cases.
To increase training opportunities and clarify any questions, Domestic Violence Unit detectives and advocates will attend patrol briefings. While to these patrol briefings, along with
other various training opportunities attended, detectives will reiterate that the lethality assessment shall be completed for violation of protective order calls for service, even if that is the
sole crime being reported. Many times, domestic violence victims have a protective order in place due to being the victim of physical violence. It is imperative officers handle these
calls for service with care and attentiveness in an effort to prevent revictimization. With these briefing trainings, it will be ensured that there is maximum exposure of opportunity for
victims to have advocate contact. It will also allow the opportunity for victims to be advised of high potential of lethality based on their answers to the questions.
Question 6
Describe the need for additional domestic violence-specific training for patrol officers/first responders and other relevant department personnel.
Domestic violence is volatile, complex, and unfortunately, very prevalent in the City and County of Fresno. Out of the ten largest cities in California, the City of Fresno has the highest
per capita domestic violence reports at 16.4%. Our Domestic Violence Unit consists of two sergeants, nine detectives, and the two previously mentioned domestic violence advocates.
The Domestic Violence Unit is one of the largest special units in our department in terms of numbers of personnel. Detectives will attend briefings to update patrol officers on ways to
better document domestic violence reports. Detectives also regularly collaborate with patrol officers through phone calls or messages while the patrol officers are on scene to ensure all
necessary steps are taken in the course of the investigation. Our detectives also offer guidance and information to the Fresno Police Department Training Unit, who provides domestic
violence updates to sworn personnel attending their perishable skills training. Our detectives themselves would benefit from attending trainings such as Institute of Criminal
Investigation Training related to general investigations and domestic violence specific investigations. With this additional training, detectives can better advise patrol officers and
training unit officers to create the best guide to documenting domestic violence.
Question 7
Describe the need for mechanisms of interagency accountability between the department and the contracted Domestic Violence Program service provider.
The City of Fresno contains many county pockets. It is also the largest city in the San Joaquin Valley. Our shopping centers, events, sporting activities, and more, attract many people
from outside of the city limits who are sometimes become victims while within the city limits. Detectives and the Domestic Violence Unit supervisors will direct patrol officers to inquire
about the jurisdiction of which the victim resides to ensure they are being connected with the most appropriate resources. All victims will be offered the connection to the Marjaree
Mason Center, but we will seek out if there are other additional referrals that can be made that would be appropriate for the victims who are not city residents.
Question 8
Describe the department’s plan for meeting the core components as listed in the LE Program Supplemental.
Applications LE24023501
As mentioned in previous questions, the Fresno Police Department works hand-in-hand with the Marjaree Mason Center. The two in-house advocates that the Fresno Police
Department has are funded by many years of our department obtaining this very Cal OES grant. Between our in-house advocates and the on-call advocates working out of the Marjaree
Mason Center, our victims are able to be connected with advocacy 24/7. Our advocates have also provided our training unit with documents to distribute to law enforcement personnel
going through perishable skills training that explains simply the services offered by them. Our advocates are much more readily contacted and will continue to be with the use of the
lethality assessment.
Detective M. Taylor will be assigned for the entire grant subaward performance period. Det. M. Taylor possesses her Intermediate Commission on Peace Officer Standards and
Training certificate. She has also received training beyond the academy level related to conducting investigations. Det. Taylor will also maintain her case load, investigate cases,
conduct follow up, ensure all appropriate referrals are made, file cases with the District Attorney’s Office, assist the District Attorney’s Office in other ways they may request, and go with
other detectives to advise and train patrol officers on the best course of documentation for domestic violence related crimes.
Det. Taylor, the advocates, and the rest of the Domestic Violence Unit will ensure to keep patrol officers and other law enforcement personnel up to date with the best and most efficient
ways to document and handle domestic violence calls for service and investigations. This will be accomplished by attending briefings, sending out digital training material, and aiding
the training unit with the most update information to disseminate to those coming through the classes. The Fresno Police Department already has an excellent pattern of documenting
domestic violence, knowing how to speak with victims of domestic violence considering it is a very complex crime, audio and video recording all involved parties and scenes, and
ensuring the call is left with a safety plan in place. We will continue to remind patrol officers to keep up their diligent work.
Question 9
Describe the department’s plan for meeting the core components as listed in the LE Program Supplemental.
As mentioned in previous questions, the Fresno Police Department works hand-in-hand with the Marjaree Mason Center. The two in-house advocates that the Fresno Police
Department has are funded by many years of our department obtaining this very Cal OES grant. Between our in-house advocates and the on-call advocates working out of the Marjaree
Mason Center, our victims are able to be connected with advocacy 24/7. Our advocates have also provided our training unit with documents to distribute to law enforcement personnel
going through perishable skills training that explains simply the services offered by them. Our advocates are much more readily contacted and will continue to be with the use of the
lethality assessment.
Detective M. Taylor will be assigned for the entire grant subaward performance period. Det. M. Taylor possesses her Intermediate Commission on Peace Officer Standards and
Training certificate. She has also received training beyond the academy level related to conducting investigations. Det. Taylor will also maintain her case load, investigate cases,
conduct follow up, ensure all appropriate referrals are made, file cases with the District Attorney’s Office, assist the District Attorney’s Office in other ways they may request, and go with
other detectives to advise and train patrol officers on the best course of documentation for domestic violence related crimes.
Det. Taylor, the advocates, and the rest of the Domestic Violence Unit will ensure to keep patrol officers and other law enforcement personnel up to date with the best and most efficient
ways to document and handle domestic violence calls for service and investigations. This will be accomplished by attending briefings, sending out digital training material, and aiding
the training unit with the most update information to disseminate to those coming through the classes. The Fresno Police Department already has an excellent pattern of documenting
domestic violence, knowing how to speak with victims of domestic violence considering it is a very complex crime, audio and video recording all involved parties and scenes, and
ensuring the call is left with a safety plan in place. We will continue to remind patrol officers to keep up their diligent work.
Question 10
Describe the department’s plan for utilizing the Domestic Violence Counselor for the purpose of immediate response to victims/survivors and their children.
The Fresno Police Department utilizes what is known as the Lethality Assessment. The Lethality Assessment is a set of questions used nationally to assess the potential risk of death
for a victim based on the dynamic of their domestic violence relationship. The assessment is comprised of yes/no questions. Certain yes answers immediately prompt a call for the
Domestic Violence Counselor (advocate). Patrol officers who are on scene will request an in person response from one of our in-house on call advocates. If they are unavailable, the
patrol officers will contact Marjaree Mason Center hotline (available 24 hours a day) and another available advocate will either respond to the scene, speak to the victim over the
phone, or make arrangements to speak to the victim at a later time if the victim so desires. Immediate, in-person responses are always available. Even if the victim does not prompt the
immediate request for an advocate based on their answers, one will be contacted upon their request if they so desire.
Question 11
Describe the department’s plan for providing domestic violence-specific training to patrol officers and other relevant department personnel.
The Fresno Police Department has nearly 865 sworn members. There are nine full time domestic violence detectives. Detectives are assigned cases to conduct necessary follow up
on and then to send the District Attorney’s Office. Detectives are also regularly contacted by patrol officers to help provide guidance or answer questions while they are on calls for
service. Detectives will also attend patrol briefings to go over any relevant legal updates and review common issues that may be observed in initial reports. Detectives also educate
patrol officers on the investigative process of working and filing cases after the initial report is submitted so patrol officers are able to deliver thorough documentation. Our detectives
and supervisors also contribute to the information that is disseminated to local law enforcement personnel by the Fresno Police Department training unit perishable skills training.
Funds from this grant award would also allow dedicated domestic violence detectives to attend domestic violence specific training, in which they could return and share that information
among our department.
Question 12
Describe the department’s plan to develop and implement protocols for ensuring consistent and appropriate response by officers to violations of protective orders to ensure
victim/survivor safety.
Question 13
Describe the department’s plan for developing and/or enhancing protocols for responding to victims/survivors of domestic violence and their children that will remain sustainable after
the Grant Subaward performance cycle has ended.
The Fresno Police Department has a comprehensive protocol in place for handling domestic violence related incidents. Part of the required reporting requirements conducted by patrol
officers when responding to a domestic violence related call for service is to inquire about any children in common between the two parties, who were present in the home during the
domestic disturbance, or who are involved in any capacity. Children belonging to the victim are also inquired about in the lethality assessment. When a victim requests an emergency
protective order, there is also an opportunity for children to be listed on the order and temporary custody to be granted to the protected party. Not only are domestic violence advocates
regularly contacted during the course of these investigations, but patrol officers also will contact child protective services (CPS) for a referral when children are in the home or are involved in
the domestic disturbance. The Fresno Police Department does have the two mentioned Cal OES funded in house advocates, but we also have access to the Marjaree Mason Hotline that
exists outside of this Grant Subaward. Ability to contact CPS will exist outside of this Grant Subaward as well. The Fresno Police Department’s in-depth domestic violence policy has been
and will continue to be upheld by patrol officers and detectives. Updates will continue to be shared by detectives to law enforcement personnel and shared with the Fresno Police
Department’s training unit for further dissemination.
Question 14
Describe the Applicant’s experience at effectively training patrol officers/first responders and other relevant department personnel.
When a protective order violation is reported to the Fresno Police Department, officers and dispatchers first search our law enforcement databases for any relevant orders. If an order is
located, the Fresno County Sheriff’s Office is contacted by phone to confirm its validity, as they maintain the records of such orders within the county. Our department also honors out of
state and tribal protective orders. Our department policy requires an arrest be made when probable cause exists that a served protective order has been violated, regardless of whether
the violation occurs in the presence of an officer. When a protective order is found to not be served, and officers have the ability to serve the restrained party, they will do so.
Victims of violations of protective orders will also be asked the lethality assessment questions, provided a domestic violence information form, provided a Marsy’s law form, and offered
to speak with an advocate if they do not otherwise meet the criteria. Advocates can provide information on safe housing if the victim is concerned with staying in their current residence.
With all of these protocols in place and regularly enforced and followed, this provides every effort is made to ensure victim safety.
Applications LE24023501
Question 15
Describe the qualifications, education and training necessary for the job assignment of the officer(s) that will be assigned to the specialized unit and articulate how those
qualifications/education levels meet the requirements.
Detective Mary Taylor has been with the Fresno Police Department for almost 6 years and has been a sworn member for five of those years. She graduated from California State
University, Northridge with her Bachelor of Arts in Communication Studies in 2018. While attending CSU Northridge, she interned at the Los Angeles Police Department Devonshire
Division in the Gang Unit. She attended the police academy at Fresno City College, obtaining her Basic Commission on Peace Officer Standards and Training Certificate in June
2019. In August 2023, she obtained her Intermediate Commission on Peace Officer Standards and Training Certificate. She has attended trainings beyond the academy, including but
not limited to search warrant execution and interview and interrogation techniques. She has been working as a full time domestic violence detective since February 2024. As a full time
detective, she carries a case load, reviewing, investigating, and filing cases. She, along with the other domestic violence detectives, work very closely with the District Attorney’s Office,
doing any other follow-up asked of them to have successful prosecution of cases. She will work as the grant administrator for the duration of the grant.
Question 16
Describe the applicant's experience working with victim service providers in the jurisdiction.
The Fresno Police Department has strong relations with the Marjaree Mason Center, as described in other parts of this grant application. The Fresno Police Department also has an
operational agreement with the Rape Counseling Services of Fresno (RCS). Through the operational agreement, a mutual goal exists to provide the maximum available assistance to
sexual assault victims. RCS offers support, advocacy, and a 24-hour crisis line available for victims. The Fresno Police Department also has an operational agreement with the Crime
Victim Assistance Center (CVAC). In this agreement, CVAC agrees to provide resources and services to victims and training to law enforcement personnel regarding victims rights,
among other things, and FPD agrees to make referrals to them and provide police reports as needed. Also, as previously mentioned we also work closely with Child Protective
Services, being fortunate to have an in-house social worker as well. As the largest police department in the San Joaquin Valley, FPD has built and maintained extremely strong
relationships with the victim service providers in our jurisdiction. The aware of the grant will strengthen those relationships, but the work we do with each other will continue on regardless
as they are so well developed.
The Fresno Police Department has an amazing training facility known as the Fresno Police Department Regional Training Center (RTC). At RTC, perishable skills training classes are
held not only for Fresno PD personnel, but law enforcement personnel across the state. During this training, two hours are dedicated to addressing domestic violence investigations.
This training includes updates, common issues seen, case studies, and interactive activities. Domestic violence detectives and supervisors work extremely closely with the FPD
training unit staff to make sure the most updated and accurate information is being presented in these trainings. Domestic violence detectives also teach at the new officer orientation
for patrol officers about to begin their field training program. We go over additional and more department specific domestic violence investigative techniques for them to take into their
training. We also host trainings/orientations for Park Rangers, Community Services Officers, Chaplains, and Cadets that work for Fresno PD. These trainings give them a better idea as
to what domestic violence looks like, the cycle of violence, and the power and control wheel. Our unit tries to make sure everyone in our department, sworn and professional staff,
understand the complex dynamics of domestic violence, the importance of recognizing it, and for the appropriate personnel, the proper way to investigate and document it.
Applications LE24023501
Subrecipient Risk Assessment Form
Per Title 2 CFR § 200.332, Cal OES is required to evaluate the risk of noncompliance with federal statutes, regulations and grant terms and conditions posed by each subrecipient of pass-
through funding.
How many years of experience does your current grant manager have managing grants?
>5 years
How many grants does your organization currently receive?>10 grants
What is the approximate total dollar amount of all grants your organization receives?$13,655,500
Are individual staff members assigned to work on multiple grants?
Yes
Annually
Has your organization received any audit findings in the last three years?Yes
Do you have a written plan to charge costs to grants?Yes
Do you have written procurement policies?
Do you get multiple quotes or bids when buying items or services?
>5 years
How many years of experience does your current bookkeeper/accounting staff have managing grants?
Yes
Do you use timesheets to track the time staff spend working on specific activities/projects?
How often does your organization have a financial audit?
Yes
Sometimes
How many years do you maintain receipts, deposits, cancelled checks, invoices?>5 years
Do you have procedures to monitor grant funds passed through to other entities?Yes
Applications LE24023501
Operational Agreements Form
Participating Agency/Organization Date Signed Start Date End Date
11/08/2024 01/01/2025
11/08/2024 01/01/2025
11/08/2024 01/01/2025
Rape Counseling Services of Fresno 12/31/2025
Marjoree Mason Center, Inc.12/31/2025
Fresno County Probation Dept. Crime Victim
Assistance Center 12/31/2025
Applications LE24023501
Funding Source Allocation
Instructions:
Please be sure to review page for accuracy.
Funding Source All ocation
Fiscal Year Maximum Available Funding
2024 STOP 2024 Federal $203,142
Total Project Cost:$203,143
Funding Source Name Type
$203,142
Applications LE24023501
Budget Cost Categories
Cost Form Selection(s)
[X]Personnel Costs
Volunteer Costs
Contractor/Consultant Costs
Rent Costs
Travel Costs
Equipment Costs
Financial Assistance For Client's Costs
Second-Tier Subward Costs
Audit Costs
Indirect Costs
[X]Other Operating Costs
Applications LE24023501
Budget Narrative Form
Bud g et Narrative
How shared costs are allocated.
Indirect Costs/shared costs are not included in our budget request.
Need for mid-year salary range adjustments.
Fresno Police Department uses the top step salary range for our budget estimates to ensure we don’t have to process budget modifications to
close any gaps. Marjoree Mason Center calculates their advocates full-time salaries for the first six months with current salary and benefit info
and estimates any salary increases for the last six months of the grant award period.
How the proposed budget supports the objectives and activities.
The proposed budget supports the objectives and activities in two ways. The first way is financially supporting the two Marjaree Mason Center in-
house advocates. They will provide crisis intervention and follow-up services. The second component is supporting detectives in investigative
and overtime opportunities. One investigative tool is CellHawk, an analysis tool used by detectives to track movements and establish timelines
as they relate to crime by analyzing the involved cellphone. Detectives and advocates also use designated work cell phones which are used for
victim contact and work-rela communication. Additional funds are allocated to detectives for overtime hours to investigate cases and apprehend
wanted subjects.
How funds are allocated to minimize administrative costs and support direct services.
The grant funding will be allocated to support direct services. Our in-kind match and the personnel costs of FPD Domestic Violence Unit staff,
the Grant Subaward Director, Grant Subaward Programmatic Point of Contact, along with our Grants Management Unit (Grant Subaward
Financial Officer and Financial Point of Contact), who will be responsible for the grant management, including the reporting and invoicing are
utilizing local funding.
How Grant Subaward-funded staff duties and time commitments support the proposed objectives and activities.
As required in the Grant, one full-time detective will be committed to the objectives and activities for the duration of the performance period. This
detective will be assigned and housed in the Fresno Police Department Family Justice Bureau and will oversee all tasks performed by the two
advocates employed by Marjaree Mason Center. They will be responsible for all programmatic coordination, ensure efficient delivery of
resources and services available, coordination of cases with victim service providers, and will serve as the Department’s liaison with all partner
agencies. All statistical data and information for the grant’s performance measures will be gathered by the detective and submitted for the
quarterly and annual STOP reports.
The necessity for subcontracts and unusual costs.
N/A. Fresno Police Department and Marjoree Mason Center use a Memorandum of Understanding (MOU) to formalize what each agency will
provide during the grant award period.
Applications LE24023501
Personnel Budget Category Form
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Personnel Costs
[X]Hourly Salary
Pay per Hour *
$83.09
Number of Weeks *
48.00
Hours of Full-Time Workweek *
40.00
Does this position provide benefits? * Yes [X]No
Budget/Project Line-Item *
FPD Detective Overtime
Description *
At times when a domestic violence detective is not on duty, there may be a need to call one out to assist in investigative efforts for successful case prosecution, to place emergency
holds on children, and conduct operations to apprehend outstanding domestic violence suspects as quickly as possible to prevent them from re-offending against the victim. Overtime
costs will be included for Domestic Violence Detectives.
Number of Hours/Week *
14.39
Full-Time Equivalent in Hours
2,080
FTE
33.21%
Salary Calculation Total
$57,392
Calculation Total (Includes Benefits if provided)
$57,392
Applications LE24023501
Other Operating Budget Category Form
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Other Operating Costs
Budget/Project Line-Item *
FPD Program Operating Expenses
Calculation Total *
$7,089
Description/Justification *
These operating costs allow advocates and the lead detective to maintain communication with victims, law enforcement personnel and county prosecutors. Efficiency in the program is
promoted by retaining the equipment purchased with prior year funding. Items to be retained during this grant funding include cell phone service. CellHawk software is a web-based
mapping and analysis tool that provides the ability to acquire suspect data on phones.
Calculation Description *
Cell Service DV Advocates and DV Sergeant 3 @ $54/mo X 12 months = $1,944
CellHawk Software line subscription for 3 @ $1,715 each = $5,145
Applications LE24023501
Other Operating Budget Category Form
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Other Operating Costs
Budget/Project Line-Item *
MMC Program Operating Expenses
Calculation Total *
$138,662
Description/Justification *
MMC, our local DV shelter, will retain 2 full-time dv victim advocates for the program. MMC will provide qualified and properly certified victim advocates along with the necessary
resource and outreach materials. The victim advocates will be housed in the FPD Family Justice Bureau and will work directly with the patrol officers and dv detective to provide
immediate follow-up assistance to dv victims and their children.
Calculation Description *
Salary- 2 Advocates 1@ $53,846 yr; 1@ $66,826 yr = $120,672 /FICA Payroll Taxes @ 7.65% of $120,672 = $9,231 CA ETT .015611% of
$120,672 = $19 /Health Benefits (medical, dental, vision, life) - 2 @ $1,578 = $4,723 /WC 2 @ 1% X $120,672 = $1,207 /OT for Advocates 2
@ $144.17 per mth X 12 mths = $1,730 /Internet Svc for Advocates $55X12 mths = $660 / Software Svcs for Advocates $9.16/mth X12X2 =
$220 / Prog Ofc Supp (pens, paper, ink, etc.)= $200
Applications LE24023501
Application Signatures Form
Assurances/Signatures
Standard Certification of Compliance *
By checking this box, I certify the Subrecipient will comply with the requirements of the Standard Certification of Compliance. I am fully aware that this certification is made under penalty of
perjury under the laws of the State of California.
Additional information: Do not put any personally identifiable information or private information on this application. If you believe that any of the information you are putting on this application
is exempt from the Public Records Act, please attach a statement that indicates what portions of the application and the basis for the exemption. Your statement that the information is not
subject to the Public Records Act will not guarantee that the information will not be disclosed.
Authorized Agent
Name:Title:
Signature:Date:
Proof of Authority *
This Grant Subaward consists of this title page, the application for the grant, which is attached and made a part hereof, and the Assurances/Certifications. I hereby certify I am vested with
the authority to enter into this Grant Subaward, and have the approval of the City/County Financial Officer, City Manager, County Administrator, Governing Board Chair, or other Approving
Body. The Subrecipient certifies that all funds received pursuant to this agreement will be spent exclusively on the purposes specified in the Grant Subaward. The Subrecipient accepts this
Grant Subaward and agrees to administer the grant project in accordance with the Grant Subaward as well as all applicable state and federal laws, audit requirements, federal program
guidelines, and Cal OES policy and program guidance. The Subrecipient further agrees that the allocation of funds may be contingent on the enactment of the State Budget.
Program Standard Assurance Addendum *
The undersigned represents that he/she is authorized to enter into this Addendum for and on behalf of the Applicant/Subrecipient. Applicant/Subrecipient understands that failure to comply
with this Addendum or any of the assurances may result in suspension, termination, reduction, or de-obligation of funding. Applicat/Subrecipient agrees to repay funds in the event there is a
violation of grant assurances.
Fund Assurances *
By checking this box, I certify I have read all applicable Federal Fund Grant Subaward Assurances and the Subrecipient will comply with the requirements. I am fully aware that this
certification is made under penalty of perjury under the laws of the State of California.
California Public Records Act *
I understand the Grant Subaward applications are subject to the California Public Records Act, Government Code section 7920.000 et seq.
Applications LE24023501
1 of 3 Date Adopted: Date Approved: Effective Date: City Attorney Approval: SS
401584v1 Resolution No.
RESOLUTION NO. ____________
A RESOLUTION OF THE COUNCIL OF THE CITY OF
FRESNO, CALIFORNIA, AUTHORIZING ACCEPTANCE OF
$203,142 IN GRANT FUNDING FROM THE CALIFORNIA
GOVERNOR’S OFFICE OF EMERGENCY SERVICES’ LAW
ENFORCEMENT SPECIALIZED UNIT PROGRAM FOR THE
FRESNO POLICE DEPARTMENT’S DOMESTIC VIOLENCE
UNIT 2025 LAW ENFORCEMENT SPECIALIZED UNIT
PROGRAM
WHEREAS, the Fresno Police Department (grant applicant) desires to undertake
a project to work in partnership with Marjaree Mason Center (MMC) for the purpose of
providing maximum available assistance for victims of domestic violence and their
children within the City of Fresno to be funded in part from state grant funds made
available through the 2025 Law Enforcement Specialized Unit Program from the
California Governor’s Office of Emergency Services’ Law Enforcement Specialized Unit
Program; and
WHEREAS, the procedures established by the 2025 Law Enforcement Specialized
Unit Program require that, when selected for funding, the grant applicant is to submit a
resolution from its governing board authorizing the grant applicant to enter into a contract
with the California Governor’s Office of Emergency Services and execute related
documents; and
WHEREAS, the governing body approves the receiving of grant funding from the
California Governor’s Office of Emergency Services’ Law Enforcement Specialized Unit
Program for the Fresno Police Department’s Domestic Violence Unit 2025 Law
Enforcement Specialized Unit Program.
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NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Fresno as
follows:
1. The Council authorizes the acceptance of grant funding from the California
Governor’s Office of Emergency Services’ Law Enforcement Specialized Unit Program
for the Fresno Police Department’s Domestic Violence Unit 2025 Law Enforcement
Specialized Unit Program in the amount of two hundred three thousand, one hundred
forty-two dollars ($203,142).
2. The Chief of Police for the City of Fresno is authorized and directed to sign
on its behalf to accept the funding and execute the Grant Agreement, including any
extensions or amendments thereof, subject to prior approval as to form by the City
Attorney’s Office.
3. The City of Fresno agrees to abide by the statutes and regulations
governing the Law Enforcement Specialized Unit Program, as well as, the terms and
conditions of the Grant Agreement, including any liability arising from civil court actions
for damages.
4. The grant funds received hereunder shall not be used to supplant
expenditures controlled by this governing body.
5. This resolution shall be effective upon final approval.
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* * * * * * * * * * * * * *
STATE OF CALIFORNIA )
COUNTY OF FRESNO ) ss.
CITY OF FRESNO )
I, TODD STERMER, City Clerk of the City of Fresno, certify that the foregoing
resolution was adopted by the Council of the City of Fresno, at a regular meeting held on
the day of , 2025.
AYES :
NOES :
ABSENT :
ABSTAIN :
Mayor Approval: , 2025
Mayor Approval/No Return: , 2025
Mayor Veto: , 2025
Council Override Vote: , 2025
TODD STERMER, CMC
City Clerk
By:
Deputy Date
APPROVED AS TO FORM:
ANDREW JANZ
City Attorney
By:
Sukhman S. Sekhon Date
Deputy City Attorney
1 of 2 Date Adopted: Date Approved: Effective Date: Resolution No.
RESOLUTION NO. ____________
A RESOLUTION OF THE COUNCIL OF THE CITY OF FRESNO,
CALIFORNIA, ADOPTING THE 36th AMENDMENT TO THE
ANNUAL APPROPRIATION RESOLUTION NO. 2024-122 TO
APPROPRIATE $101,600 IN LAW ENFORCEMENT
SPECIALIZED UNIT PROGRAM GRANT FUNDING FOR THE
POLICE DEPARTMENT’S DOMESTIC VIOLENCE UNIT
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FRESNO:
THAT PART III of the Annual Appropriation Resolution No 2024-122 be and is hereby
amended as follows:
Increase/(Decrease)
TO: POLICE DEPARTMENT
LE Specialized Units LE24 DV $ 101,600
THAT account titles and numbers requiring adjustment by this Resolution are as follows:
LE Specialized Units LE24 DV
Revenues:
Account String: 2070-9216-9995-000-433401-15-2-0000-0000- $ 101,600
Total Revenues $ 101,600
Appropriations:
Account String: 2070-9216-9995-000-651301-15-2-0000-0000- $ 27,000
2070-9216-9995-000-656110-15-2-0000-0000- 5,300
2070-9216-9995-000-658045-15-2-0000-0000- 69,300
Total Appropriations $ 101,600
THAT the purpose is to appropriate $101,600 in Law Enforcement Specialized Unit
Program Grant funding from the California Governor’s Office of Emergency Services for the
Police Department’s Domestic Violence Unit.
* * * * * * * * * * * * * *
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STATE OF CALIFORNIA )
COUNTY OF FRESNO ) ss.
CITY OF FRESNO )
I, TODD STERMER, City Clerk of the City of Fresno, certify that the foregoing Resolution
was adopted by the Council of the City of Fresno, California, at a regular meeting thereof, held
on the day of 2025.
AYES :
NOES :
ABSENT :
ABSTAIN :
Mayor Approval: , 2025
Mayor Approval/No Return: , 2025
Mayor Veto: , 2025
Council Override Vote: , 2025
TODD STERMER, CMC
City Clerk
BY:
Deputy Date
1
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MEMORANDUM OF UNDERSTANDING
This Memorandum of Understanding (MOU), effective as of January 1, 2025, is
entered into by and between the CITY OF FRESNO, CALIFORNIA, a California municipal
corporation (City), and the MARJAREE MASON CENTER, INC., a California nonprofit
corporation (MMC).
RECITALS
WHEREAS, the City has submitted to the California Governor’s Office of Emergency
Services (CalOES), Law Enforcement Specialized Unit Program 2025 Grant Funding Cycle
– Law Enforcement Specialized Unit Program (the Program), an application for $203,142 in
grant funds for planning which is incorporated herein; and
WHEREAS, the Program is focused on enhancing the specialized unit, with emphasis
on improving coordinated response to victims of domestic violence and their children, and
the City’s application proposes to increase the Fresno Police Department’s (FPD) ability to
respond to these populations; and
WHEREAS, upon award of grant funds and entry into a grant agreement with CalOES
consistent with the Program (Grant), the City intends to work in partnership with MMC for
the purpose of providing additional assistance for victims of domestic violence and their
children within the City of Fresno, including addressing violence against victims, using a
combination of investigation, immediate response, immediate victim advocacy, and training
for law enforcement officers; and
WHEREAS, the City and MMC believe the implementation of the Program as
described herein will further the above goals and agree to coordinate and provide the
services referenced herein.
AGREEMENT
NOW, THEREFORE, in consideration of the above recitals, which recitals are
contractual in nature, the mutual covenants herein contained, and such other and further
consideration as is hereby acknowledged, and subject to the terms and conditions and
provisions of the Program and this MOU, the parties mutually agree as follows:
1. PARTICIPATING AGENCIES AND DESIGNATED CONTACT PERSONS
Fresno Police Department Marjaree Mason Center, Inc.
Family Justice Bureau Leticia Campos, CPO
Sgt. Sukhbir Chauhan 1600 “M” St.
2323 Mariposa Mall Fresno, CA 93721
Fresno, CA 93721
2. ROLES AND RESPONSIBILITIES
A. Fresno Police Department:
The FPD, subject to all applicable federal, state, and local laws, shall:
i. Act as the lead agency in coordinating the activities of the Law
Enforcement Specialized Unit Program to target domestic violence victims and
their children.
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ii. Identify victims and families to be served by this Grant.
iii. Detectives shall provide specialized investigation into domestic
violence cases to enhance the probability of successful prosecution.
iv. Provide training on police procedures, office space, office
furniture, office supplies and telephones to the MMC Advocates described
below.
v. Attend monthly meetings to assess progress and find solutions
to problems.
B. Marjaree Mason Center, Inc.
MMC shall:
i. Recruit, hire, train and supervise two full-time Advocates, as set
forth in further detail in C. below, which will be assigned to FPD and
concentrating on domestic violence investigations.
a. One Advocate will be required to respond on
investigations with officers Friday-Tuesday, 2:00 pm – 10:30 pm, and
shall coordinate with the DVU Sergeant, detectives and officers for case
follow-up and immediate call-out response after hours of normal
operation.
b. One Advocate will be required to respond on
investigations with officers Monday-Friday, 8:00 am – 4:30 pm, and
shall coordinate with the DVU Sergeant, detectives and officers for case
follow-up.
c. In the event the “FPD assigned” Advocates are not
available; officers will have access and the support of the MMC Crisis
Response Team – Navigators. Through the MMC Navigators, they can
also provide follow up and response to those victims that are either
directly brought into MMC by officers; and/or respond out in the field
when contacted by an officer via the 24/7 hotline, and in need of
Advocate support.
d. 100% of the salary for two full-time Advocates are eligible
costs incurred by MMC for compensation from Grant monies available
to MMC in Section 3, below.
ii. MMC shall provide training to Specialized Unit Program
advocates on advocacy procedures.
iii. Attend monthly meetings with FPD staff to assess progress and
find solutions to problems.
iv. Cooperate with FPD and Auditor in preparation of the Program
Evaluation and all reporting requirements.
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C. Requirements of Advocates
i. MMC shall recruit, hire, train and supervise two Advocates.
These Advocates shall serve as outreach aide for victims as identified by FPD
and provide crisis intervention, advocacy, resource and referral assistance,
restraining order assistance, and follow-up services.
ii. MMC shall provide referred clients with access to all appropriate
MMC services including shelter, support groups, counseling, legal advocacy,
twenty-four hour crisis hotline, survival skills, legal options classes, and
information and referral.
iii. MMC domestic violence Advocates must meet the applicable
requirements of a domestic violence counselor as defined by the Evidence
Code §1037-1037.7. Advocates must have training/experience in assisting
victims with the paperwork necessary to obtain a restraining order.
iv. MMC victim Advocate(s) funded hereunder must meet Program
Entry-Level Advocates Standards and have completed an additional forty
hours of specific domestic violence and/or sexual assault training.
v. MMC victim Advocate(s) must comply with all regulations
pertaining to Federal Drug/Alcohol testing.
3. REIMBURSEMENT FOR PROGRAM ACTIVITIES
For the aforementioned services, the City agrees to reimburse MMC solely from
allocated and available Program Grant funds for eligible costs incurred by MMC, in
an amount not to exceed $138,662, in accordance with the Program budget submitted
by the City for the 2025 Program performance period funding of this MOU (attached
hereto as Exhibit A and incorporated herein by reference). Any future grant funding
will be agreed upon between the City, MMC and CalOES through the annual
reapplication process.
Any future applications and award of funds for 2025 Program funding cycle shall be
by written amendment to this MOU and signed by both parties.
Payment of said bill shall be contingent on the City’s receipt of any reports and
substantiation materials reasonably requested by the City.
If MMC should fail to comply with any provision of the Agreement, the City shall be
relieved of its obligation for further compensation.
4. EFFECTIVENESS AND DURATION
The effectiveness of this MOU is contingent upon City receiving the Grant award. The
participating agency signing this MOU shall be committed to the Grant Program for
the entire funding cycle commencing January 1, 2025 and ending December 31,
2025. Each twelve-month period of this MOU will be for the then current Program
year and annual Grant period, and will be subject to Cal OES approval, through a
Grant application for continued funding. MMC acknowledges and agrees that
continued funding is dependent upon satisfactory performance and availability of
funds.
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5. TARGET POPULATION
Services provided under this Program shall be directed to victims involved in domestic
violence incidents, and their families, that are residents of the City of Fresno.
6. RESOURCES TO BE CONTRIBUTED BY EACH PARTY
Fresno City Police Department
• One domestic violence investigator;
• A Police Sergeant to provide on-site supervision of the domestic violence unit;
• Office space, telephone, vehicles for detectives, office supplies; and
• Office space, access to vehicles, computer and telephone for the advocates.
Marjaree Mason Center, Inc.
• Two Advocates;
• MMC to provide shelter and other assistance to victims;
• Supervision and training by the Project Director; and
• Access for victims, as identified by FPD, to needed MMC services within
existing policies and procedures.
7. RECORDKEEPING AND PERFORMANCE DATA
MMC shall keep proper records and submit to the City each quarter the following
data:
Number of Victims – Proper documentation of the number of victims served, calls for
service, including number of cases reported, counseled, provided shelter and other
assistance and any other information required by the grantor agency.
8. FINANCIAL REPORTING, AUDITING AND DOCUMENT RETENTION
MMC shall submit a monthly bill to FPD for the eligible expenses incurred in providing
the services of the advocates. Billing documentation shall include the following:
(i) A breakdown of expenditures by cost category;
(ii) Maintain copies of all purchase orders and requisitions; and
(iii) Proof of payment for eligible expenditures.
MMC agrees to provide a substantiation and support for services, fees, costs and
expenses upon the reasonable request of the Agency for a period of not less than
three years after final closeout of the Grant by the grantor agency. Records of MMC’s
expenses pertaining to their respective services shall be kept on a generally
recognized accounting basis and shall be available to the City or its authorized
representatives upon request during regular business hours throughout the life of the
MOU and for a period of three years after final closeout. In addition, all books,
documents, papers, and records of MMC pertaining to their respective services shall
be available for the purpose of making audits, examinations, excerpts, and
transcriptions for the same period of time.
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9. TERMINATION
The term of the MOU is for one year, commencing January 1, 2025, and ending
December 31, 2025, with any subsequent years contingent on the reapplication
process and approval by CalOES. For purposes of this MOU, each respective
Program year and Grant period will be for 12 months as follows:
Program Funding Cycle Program Year and Grant Period
2024 January 1, 2025 – December 31, 2025
Notwithstanding the foregoing, this MOU shall automatically suspend or terminate
upon City’s written notice to MMC of any of the following events: (i) Program
termination, (ii) any non-appropriation or non-allocation of Program funding required
in pursuit hereof, (iii) MMC’s illegal or improper use of funds, (iv) MMC’s failure to
comply with any term of this MOU, (v) MMC’s submittal of any substantially incorrect
or incomplete itemized invoice required for reimbursement, (vi) MMC’s failure to
comply with Federal Drug/Alcohol regulations, or (vii) MMC’s failure to comply with
any applicable provisions of the Grant. Nothing in this MOU shall commit the taxing
authority or general fund of the City.
MMC may terminate this MOU upon thirty days prior written notice the City in the
event of either of the following: (i) non-appropriation by MMC’s governing body of
sufficient funds to perform its obligations under this MOU; or (ii) substantial failure of
City to comply with any term of this MOU. Notwithstanding the above, prior to
terminating this MOU for substantial failure of City to comply with any term of this
MOU, MMC shall provide City written notice of the failure to comply and allow for a
fifteen day cure period for City to substantially comply.
In no event shall any payment by City constitute a waiver by City of any breach of this
MOU or any default which may then exist on the part of MMC. Neither shall such
payment impair or prejudice any remedy available to the City with respect to the
breach or default. The City shall have the right to demand of MMC the repayment to
the City of any funds respectively disbursed to MCC under this MOU, which in the
judgment of the City were not expended in accordance with the terms of this MOU.
MMC, respectively, shall promptly refund any such funds upon demand.
10. COMPLIANCE WITH GOVERNING LAW AND GRANT
The parties shall at all times comply with all applicable laws of the United States, the
State of California, and with all applicable regulations promulgated by federal, state,
regional, or local administrative and regulatory agencies, now in force and as they
may be enacted, issued, or amended during the term of this MOU. MMC
acknowledges receipt of a copy of the Grant and agrees to comply with all applicable
provisions thereof and cooperate with City in meeting the requirements thereunder.
The services provided by MMC under this MOU are over and above MMC’s budgeted
positions. The parties agree that Grant funds shall not be used to replace funds of, or
positions otherwise funded by MMC.
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As applicable, costs and expenditures must be allowable in accordance with OMB 2
C.F.R. Part 200, Subpart F; federal and state laws, rules and regulations, the terms
of the program and the CalOES Subrecipient Handbook.
11. CAPACITY OF AGENCY AND MMC
Nothing in this MOU, and nothing in the course of dealings between MMC and the
City shall be deemed to create any fiduciary relationship, trust, partnership, joint
venture, agency or employment relationship.
12. INSURANCE AND INDEMNITY
A. INSURANCE
MINIMUM SCOPE OF INSURANCE
Coverage shall be at least as broad as:
1. The most current version of Insurance Services Office (ISO) Commercial
General Liability Coverage Form CG 00 01, providing liability coverage arising
out of your business operations. The Commercial General Liability policy shall
be written on an occurrence form and shall provide coverage for “bodily injury,”
“property damage” and “personal and advertising injury” with coverage for
premises and operations (including the use of owned and non-owned
equipment), products and completed operations, and contractual liability
(including, without limitation, indemnity obligations under the Agreement) with
limits of liability not less than those set forth under “Minimum Limits of
Insurance.”
2. The most current version of ISO *Commercial Auto Coverage Form CA 00 01,
providing liability coverage arising out of the ownership, maintenance or use
of automobiles in the course of your business operations. The Automobile
Policy shall be written on an occurrence form and shall provide coverage for
all owned, hired, and non-owned automobiles or other licensed vehicles (Code
1- Any Auto). If personal automobile coverage is used, the CITY, its officers,
officials, employees, agents and volunteers are to be listed as additional
insureds.
3. Workers’ Compensation insurance as required by the State of California and
Employer’s Liability Insurance.
4. Social Services Liability or Professional Liability (Abuse & Molestation) that
insures against liability arising out of the bodily injury, personal injury, and
third-party property damage occurring because of the wrongful or negligent
acts attributable to the institution. This coverage should protect against a wide
range of potential claims, including but not limited to assault, verbal and/or
physical abuse, sexual molestation and other sexual misconducts.
MINIMUM LIMITS OF INSURANCE
MMC, or any party the MMC subcontracts with, shall maintain limits of liability of not
less than those set forth below. However, insurance limits available to CITY, its
officers, officials, employees, agents and volunteers as additional insureds, shall be
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the greater of the minimum limits specified herein or the full limit of any insurance
proceeds available to the named insured:
1. COMMERCIAL GENERAL LIABILITY:
(i) $1,000,000 per occurrence for bodily injury and property damage;
(ii) $1,000,000 per occurrence for personal and advertising injury;
(iii) $2,000,000 aggregate for products and completed operations; and,
(iv) $2,000,000 general aggregate applying separately to the work
performed under the Agreement.
2. COMMERCIAL AUTOMOBILE LIABILITY:
$1,000,000 per accident for bodily injury and property damage.
3. WORKERS’ COMPENSATION INSURANCE as required by the State of
California with statutory limits.
4. EMPLOYER’S LIABILITY:
(i) $1,000,000 each accident for bodily injury;
(ii) $1,000,000 disease each employee; and,
(iii) $1,000,000 disease policy limit.
5. Professional Liability (Abuse & Molestation):
(i) $1,000,000 per claim/occurrence; and,
(ii) $2,000,000 policy aggregate.
6. CYBER LIABILITY insurance with limits not less than:
(i) $1,000,000 per claim/occurrence; and,
(ii) $2,000,000 policy aggregate.
UMBRELLA OR EXCESS INSURANCE
In the event MMC purchases an Umbrella or Excess insurance policy(ies) to meet
the “Minimum Limits of Insurance,” this insurance policy(ies) shall “follow form” and
afford no less coverage than the primary insurance policy(ies). In addition, such
Umbrella or Excess insurance policy(ies) shall also apply on a primary and non-
contributory basis for the benefit of the CITY, its officers, officials, employees, agents
and volunteers.
DEDUCTIBLES AND SELF-INSURED RETENTIONS
MMC shall be responsible for payment of any deductibles contained in any insurance
policy(ies) required herein and MMC shall also be responsible for payment of any
self-insured retentions. Any deductibles or self-insured retentions must be declared
to on the Certificate of Insurance, and approved by, the CITY’S Risk Manager or
his/her designee. At the option of the CITY’S Risk Manager or his/her designee,
either:
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(i) The insurer shall reduce or eliminate such deductibles or self-insured
retentions as respects CITY, its officers, officials, employees, agents
and volunteers; or
(ii) MMC shall provide a financial guarantee, satisfactory to CITY’S Risk
Manager or his/her designee, guaranteeing payment of losses and
related investigations, claim administration and defense expenses. At
no time shall CITY be responsible for the payment of any deductibles
or self-insured retentions.
OTHER INSURANCE PROVISIONS/ENDORSEMENTS
The General Liability and Automobile Liability insurance policies are to contain, or be
endorsed to contain, the following provisions:
1. CITY, its officers, officials, employees, agents and volunteers are to be
covered as additional insureds. MMC shall establish additional insured status
for the City and for all ongoing and completed operations by use of ISO Form
CG 20 10 11 85 or both CG 20 10 10 01 and CG 20 37 10 01 or by an
executed manuscript insurance company endorsement providing additional
insured status as broad as that contained in ISO Form CG 20 10 11 85.
2. The coverage shall contain no special limitations on the scope of protection
afforded to CITY, its officers, officials, employees, agents and volunteers. Any
available insurance proceeds in excess of the specified minimum limits and
coverage shall be available to the Additional Insured.
3. For any claims relating to this Agreement, MMC’S insurance coverage shall
be primary insurance with respect to the CITY, its officers, officials, employees,
agents and volunteers. Any insurance or self-insurance maintained by the
CITY, its officers, officials, employees, agents and volunteers shall be excess
of MMC’S insurance and shall not contribute with it. MMC shall establish
primary and non-contributory status by using ISO Form CG 20 01 04 13 or by
an executed manuscript insurance company endorsement that provides
primary and non-contributory status as broad as that contained in ISO Form
CG 20 01 04 13.
4. Should any of these policies provide that the defense costs are paid within the
Limits of Liability, thereby reducing the available limits by defense costs, then
the requirement for the Limits of Liability of these polices will be twice the
above stated limits.
The Workers’ Compensation insurance policy is to contain, or be endorsed to contain,
the following provision: MMC and its insurer shall waive any right of subrogation
against CITY, its officers, officials, employees, agents and volunteers.
If the Professional Liability (Abuse & Molestation and Cyber) insurance policy is
written on a claims-made form:
1. The retroactive date must be shown and must be before the effective date of
the Agreement or the commencement of work by MMC.
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2. Insurance must be maintained, and evidence of insurance must be provided
for at least five years after completion of the Agreement work or termination of
the Agreement, whichever occurs first, or, in the alternative, the policy shall be
endorsed to provide not less than a five-year discovery period.
3. If coverage is canceled or non-renewed, and not replaced with another claims-
made policy form with a retroactive date prior to the effective date of the
Agreement or the commencement of work by MMC, MMC must purchase
“extended reporting” coverage for a minimum of five years completion of the
Agreement work or termination of the Agreement, whichever occurs first.
4. A copy of the claims reporting requirements must be submitted to CITY for
review.
5. These requirements shall survive expiration or termination of the Agreement.
All policies of insurance required herein shall be endorsed to provide that the
coverage shall not be cancelled, non-renewed, reduced in coverage or in limits except
after thirty calendar days written notice by certified mail, return receipt requested, has
been given to CITY. MMC is also responsible for providing written notice to the CITY
under the same terms and conditions. Upon issuance by the insurer, broker, or agent
of a notice of cancellation, non-renewal, or reduction in coverage or in limits, MMC
shall furnish CITY with a new certificate and applicable endorsements for such
policy(ies). In the event any policy is due to expire during the work to be performed
for CITY, MMC shall provide a new certificate, and applicable endorsements,
evidencing renewal of such policy not less than fifteen calendar days prior to the
expiration date of the expiring policy.
Should any of the required policies provide that the defense costs are paid within the
Limits of Liability, thereby reducing the available limits by any defense costs, then the
requirement for the Limits of Liability of these polices will be twice the above stated
limits.
The fact that insurance is obtained by MMC shall not be deemed to release or
diminish the liability of MMC, including, without limitation, liability under the indemnity
provisions of this Agreement. The policy limits do not act as a limitation upon the
amount of indemnification to be provided by MMC. Approval or purchase of any
insurance contracts or policies shall in no way relieve from liability nor limit the liability
of MMC, its principals, officers, agents, employees, persons under the supervision of
MMC, vendors, suppliers, invitees, consultants, sub-consultants, subcontractors, or
anyone employed directly or indirectly by any of them.
VERIFICATION OF COVERAGE
MMC shall furnish CITY with all certificate(s) and applicable endorsements
effecting coverage required hereunder. All certificates and applicable
endorsements are to be received and approved by the CITY’S Risk Manager or
his/her designee prior to CITY’S execution of the Agreement and before work
commences. All non-ISO endorsements amending policy coverage shall be
executed by a licensed and authorized agent or broker. Upon request of CITY, MMC
shall immediately furnish City with a complete copy of any insurance policy required
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under this Agreement, including all endorsements, with said copy certified by the
underwriter to be a true and correct copy of the original policy. This requirement shall
survive expiration or termination of this Agreement.
B. INDEMNIFICATION.
To the furthest extent allowed by law, CITY shall indemnify, hold harmless and defend
MMC and each of its officers, officials, employees, agents and volunteers from any
and all loss, liability, fines, fines, penalties, forfeitures, costs and damages (whether
in contract, tort or strict liability, including but not limited to personal injury, death at
any time and property damage) incurred by MMC, CITY or any other person, and
from any and all claims, demands and actions in law or equity (including attorney's
fees and litigation expenses and any costs or fees to enforce this agreement), arising
or alleged to arise directly or indirectly from the negligent or intentional acts or
omissions of CITY or any of its officers, officials, employees, agents or volunteers in
the performance of this MOU; provided nothing herein shall constitute a waiver by
CITY of governmental immunities including California Government Code section 810
et seq.
MMC agrees that this MOU shall in no way act to abrogate or waive any immunities
available to CITY under the Tort Claims Act of the State of California.
To the furthest extent allowed by law MMC shall indemnify, hold harmless and defend
City, and each of their officers, officials, employees, agents and volunteers from any
and all loss, liability, fines, penalties, forfeitures, costs and damages (whether in
contract, tort or strict liability, including but not limited to personal injury, death at any
time and property damage) incurred by City, MMC or any other person, and from any
and all claims, demands and actions in law or equity (including attorney's fees and
litigation expenses and any costs or fees to enforce this agreement), arising or
alleged to arise directly or indirectly from the negligent or intentional acts or omissions
of MMC or any of its officers, officials, employees, agents or volunteers in the
performance of this MOU.
MMC'S obligations under the preceding sentence shall not apply to any loss, liability,
fines, penalties, forfeitures, costs or damages caused by the active or sole
negligence, or the willful misconduct, of CITY or any of its officers, officials,
employees, agents or volunteers.
If MMC should subcontract all or any portion of the services to be performed under
this MOU, MMC shall require each subcontractor to indemnify, hold harmless and
defend City, and each of its officers, officials, employees, agents and volunteers in
accordance with the terms of the preceding paragraphs.
This section shall survive termination or expiration of this MOU.
13. ATTORNEY’S FEES
If either party is required to commence any proceeding or legal action to enforce or
interpret any term, covenant or condition of this MOU, the prevailing party in such
proceeding or action shall be entitled to recover from the other party its reasonable
attorney’s fees and legal expenses.
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14. PROCEDENCE OF DOCUMENTS
In the event of any conflict between the body of this MOU and any exhibit hereto, the
terms and conditions of the body of this MOU shall control and take precedence over
terms and conditions expressed within the exhibit. Furthermore, any terms or
conditions contained within any exhibit hereto which purport to modify the allocation
of risk between the parties, provided for within the body of this MOU, shall be null and
void.
15. NOTICES
Any notice required or intended to be given to either party under the terms of this
MOU shall be in writing and shall be deemed to be duly given if delivered personally
or deposited into the United States mail, return receipt requested, with postage
prepaid, addressed to the party to which notice is to be given at the party’s address
set forth in Section 1 of this MOU or at such other address as the parties may from
time to time designate by written notice.
16. BINDING
Once this MOU is signed by the parties, it shall be binding upon, and shall inure to
the benefit of, the parties, and each party’s respective heirs, successors, assigns,
transferees, agents, servants, employees, and representatives.
17. ASSIGNMENT
There shall be no assignment by either party of its rights or obligations under this
MOU without the prior written approval of the other party. Any attempted assignment
by a party, its successors or assigns, shall be null and void unless approved in writing
by the other party.
18. WAIVER
The waiver by either party of a breach by the other of any provision of this MOU shall
not constitute a continuing waiver or a waiver of any subsequent breach of either the
same or a different provision of this MOU.
No provisions of this MOU may be waived unless in writing and approved by and
signed by all parties to this MOU. Waiver of any one provision herein shall not be
deemed to be a waiver of any provision herein.
19. GOVERNING LAW AND VENUE
This MOU shall be governed by, and construed and enforced in accordance with, the
laws of the State of California. Venue for purposes of the filing of any action regarding
the enforcement or interpretation of this MOU and any rights and duties hereunder
shall be Fresno County, California.
20. HEADINGS
The section headings in this MOU are for convenience and reference only and shall
not be construed or held in any way to explain, modify or add to the interpretation or
meaning of the provisions of this MOU.
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21. SEVERABILITY
The provisions of this MOU are severable. The invalidity, or unenforceability of any
one provision in the MOU shall not affect the other provisions.
22. INTERPRETATION
The parties acknowledge that this MOU in its final form is the result of the combined
efforts of the parties and that, should any provision of this MOU be found to be
ambiguous in any way, such ambiguity shall not be resolved by construing this MOU
in favor or against any party, but rather by construing the terms in accordance with
their generally accepted meaning.
23. ENTIRE MOU
It is mutually understood and agreed that the forgoing constitutes the entire MOU
between the parties. Any modifications or amendments to this MOU must be in writing
signed by an authorized agent of each party.
[SIGNATURE PAGE TO FOLLOW]
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THIS MOU/AGREEMENT IS SUBJECT TO RATIFICATION BY COUNCIL ACTION
UPON AWARD OF GRANT FUNDS.
IN WITNESS THEREOF, the parties have executed this MOU at Fresno, California
on the day and year first above written.
CITY OF FRESNO, CALIFORNIA, MARJAREE MASON CENTER, INC.,
a California municipal corporation a California non-profit organization
By: _____________________________ By: ____________________________
Mindy Casto, Interim Chief of Police Nicole Linder, CEO
City of Fresno Police Department
APPROVED AS TO FORM: TAXPAYER FEDERAL I.D. # 94-1156639
ANDREW JANZ
City Attorney
By: _____________________________
Sukhman S. Sekhon Date
Deputy City Attorney
ATTEST:
Todd Stermer, CMC
City Clerk
By:______________________________
Deputy Date
Attachments:
Exhibit A - Budget
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1/16/25
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401240v1
Exhibit A
Budget
Personnel
Salary – Advocate #1 1 @ $53,846 $53,846
Salary – Advocate #2 1 @ $66,826 $66,826
FICA – 2 Advocates 7.65% X $120,672 $9,231
CA ETT – 2 Advocates .015611% X $120,672 $19
Workers Compensation 1% X $120,672 $1,207
Health Benefits (medical, dental, vision, life
insurance)
2 @ $2,361.50 $4,723
Overtime for Advocates 2 @ $145.83 per
Month X 12 Months
$1,730
TOTAL $137,582
Operational
Software Licenses for Advocates 2 X $110 Annually $220
Internet/Communications $55 per month X 12
Months
$660
Program Supplies (pens, paper, file folders,
etc.)
$200 $200
TOTAL $1,080
Total Cost for year 1 = $138,662
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City of Fresno
Staff Report
2600 Fresno Street
Fresno, CA 93721
www.fresno.gov
File #:ID 25-87 Agenda Date:1/30/2025 Agenda #:
2.-Q.
REPORT TO THE CITY COUNCIL
FROM:BROCK D. BUCHE, PE, PLS, Director
Department of Public Utilities
BY:PAUL AMICO, PE, Assistant Director
Department of Public Utilities - Administration
PETER MARACCINI, PE, PHD, Licensed Engineer Manager
Department of Public Utilities - Utilities Planning & Engineering
SUBJECT
Approve the Water System Consolidation Agreement between Three Palms Mobile Home Park, LLC
and the City of Fresno for a water connection to serve Three Palms MH Park and authorize the
Director of Public Utilities to sign the Agreement on behalf of the City of Fresno. (Council District 3)
RECOMMENDATION
Staff Recommends that City Council approve the Water System Consolidation Agreement between
Three Palms MH Park, LLC, and the City of Fresno, and authorize the Director of Public Utilities to
execute the Agreement on behalf of the City of Fresno.
EXECUTIVE SUMMARY
The Three Palms Mobile Home Park (Three Palms MHP) was issued a compliance order from the
California State Water Resources Control Board (SWRCB) for exceeding the 1,2,3-Trichloropropane
(1,2,3-TCP) maximum contaminant level (MCL) in its private groundwater well. To comply with the
order, Three Palms MHP desires to connect to the City of Freno’s (City’s) drinking water distribution
system. The cost to connect is eligible for 100 percent grant funding under the SWRCB’s Drinking
Water State Revolving Fund (DWSRF) program. On January 2, 2024, the City executed a Drinking
Water Construction Grant Agreement (Grant Agreement) with the SWRCB to fund 100 percent of the
work. Prior to commencing the work, the SWRCB requires that Three Palms MHP, LLC, the owners
of Three Palms MHP, enter into a Water System Consolidation Agreement with the City.
BACKGROUND
The SWRCB administers the DWSRF program, which finances infrastructure improvements to
mitigate drinking water risks and support the human right to water. The DWSRF’s Intended Use Plan
prioritizes disadvantaged communities (DAC) that require assistance to solve their drinking water
problems, and it also identifies financing programs available to provide the assistance.
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The Three Palms MHP community,located within Council District 3,qualifies as a DAC per SWRCB
Division of Financial Assistance criteria.The community of approximately 300 residents is located
between North Golden State Boulevard and the State Route 99,north of West McKinley Avenue and
south of West Clinton Avenue.The community is currently served by a single,private well and is not
connected to the City’s drinking water distribution system.
In March 2018,Three Palms MHP was issued a compliance order by the SWRCB for exceeding the
1,2,3-TCP MCL in the domestic well water.Concentrations of 1,2,3-TCP in domestic well water
samples collected between February 2018 and November 2020 have been 9 to 24 times greater than
the MCL allowed in drinking water,representing a persistent health risk to Three Palms MHP
residents.
To comply with the SWRCB order and mitigate the health risk to Three Palms MHP residents,the
City initiated the process of applying to the SWRCB DWSRF program to fund the consolidation of the
Three Palms MHP with the City’s water system.
On April 28,2021,the City Council approved Resolution 2021-110 authorizing the Department of
Public Utilities (DPU)to submit a financial assistance agreement application to the SWRCB for a
water connection to Three Palms MHP.DPU subsequently submitted a grant application for $344,696
in financial assistance.
Resolution No.2021-110 also authorized the DPU Director or designee(s)to represent the City in
carrying out the City's responsibilities under the financing agreements,including certifying
disbursement requests on behalf of the City and complying with applicable state and federal laws.
On June 8,2023,City Council adopted Resolution No.2023-174 authorizing the DPU Director or
designee(s)to accept funds and execute the financial assistance agreement and any amendments
thereto with the California State Water Resources Control Board on behalf of the City of Fresno for a
water connection to serve Three Palms MHP.
On January 2,2024,the City executed a Grant Agreement with the SWRCB and was awarded
$396,461 in grant funding for the project.The Grant Agreement requires that the City enter into a
Water System Consolidation Agreement with the legal owner of the Three Palms MHP water system,
Three Palms MH Park,LLC.,under certain terms specified in the agreement (Attachment Water
System Consolidation Agreement).The next step for the project is the approval of the Water System
Consolidation Agreement on behalf of the City.
The purpose of the Water System Consolidation Agreement is to (1)transmit the requirements of the
Grant Agreement between the SWRCB and the City to Three Palms MH Park,LLC.,(2)define the
responsibilities for onsite and offsite work between the City and Three Palms MH Park,LLC to
complete the terms of the Grant Agreement,(3)transmit any provisions,such as indemnification and
insurance requirements the City may have for Three Palms MH Park,LLC.over the course of the
construction activities,and (4)set forth the terms and responsibilities for Three Palms MH Park,LLC.
as a City water system customer.
The City Attorney’s Office has reviewed the Water System Consolidation Agreement and approved as
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to form.
ENVIRONMENTAL FINDINGS
Staff has performed an environmental assessment for the Three Palms MHP Water System
Consolidation Project and has determined it is consistent with Categorical Exemption pursuant to
Class I,set forth in the California Environmental Quality Act (CEQA)Guidelines Sections 15301(b)&
(d)(Existing Facilities),which exempts the repair and maintenance of existing facilities that involves
negligible or no expansion of an existing use.The project involves the consolidation of the Three
Palms MHP’s water system accomplished through minor alterations to its existing water distribution
system and the City’s existing infrastructure.These minor alterations represent a negligible
expansion in use of the impacted facilities.Furthermore,none of the exceptions to Categorical
Exemptions set for in the CEQA Guidelines Section 15300.2 apply to this project.This finding was
formally adopted by the Council on June 8,2023,and a Notice of Exemption was subsequently filed
with the Fresno County Clerk on June 16, 2023.
The proposed action is approval of a Water System Consolidation Agreement between Three Palms
MH Park,LLC.,and the City of Fresno.The purpose of the Water System Consolidation Agreement
is to (1)transmit the requirements of the Grant Agreement between the SWRCB and the City of
Fresno to Three Palms MH Park,LLC.,(2)define the responsibilities for onsite and offsite work
between the City of Fresno and Three Palms MH Park,LLC.,to complete the terms of the Grant
Agreement,(3)transmit any provisions,such as indemnification and insurance requirements,the City
may have for Three Palms MH Park,LLC.,over the course of the construction activities,and (4)set
forth the terms and responsibilities for Three Palms MH Park,LLC.,as a City of Fresno water system
customer.In this way,this agreement is necessary to implement the consolidation project.No further
assessment pursuant to CEQA is required at this time.
LOCAL PREFERENCE
Local preference was not implemented because this action does not include a bid or an award of a
construction or services contract.
FISCAL IMPACT
This project has no impact on the General Fund.No matching funds are required under this financial
assistance agreement. The project is located in Council District 3.
Attachments:
Water System Consolidation Agreement
Resolution 2021-110
Resolution 2023-174
Notice of Exemption
Vicinity Map
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WATER SYSTEM CONSOLIDATION AGREEMENT
THIS AGREEMENT is made and entered into effective _______________, 202,
(Effective Date) by and between the CITY OF FRESNO, a California
municipal corporation (City), and Three Palms MH Park, LLC, a California Limited
Liability Company (Owner).
RECITALS
A. The Three Palms Mobile Home Park (Three Palms MHP), located at 1941 N
Golden State Blvd, Fresno, CA 93705 (APN 442-122-12 and APN 442-122-26), is
currently served by a single well and in March 2018 was issued a compliance order
by the State Water Resources Control Board (SWRCB) for exceedance of the
1,2,3-tricholorpropane Maximum Contaminant Level in the raw well water.
B. The Owner operates the Three Palms Mobile Home Park Water System (Three
Palms MHP WS), a community water system, and has requested that the City
provide water service (Services) to Three Palms MHP, which is located within the
City’s existing water service area and within the City’s corporate boundaries.
C. The Services to be provided by the City will serve the demands for the Owner’s
facilities at the Three Palms MHP, which can generally be described as a
residential community.
D. The City applied for and was awarded funding to connect Three Palms MHP to the
City’s Water System. This will be accomplished by (a) installing a 6-inch water
service connection, meter, and meter vault to connect Three Palms MHP to the
City’s water system and (b) accomplishing the physical disconnection of the
existing Three Palms MHP Well 3 and destruction of the three onsite wells
(Project). On January 2, 2024, the City executed a Drinking Water Construction
Grant Agreement (Grant Agreement) with the SWRCB.
E. The City will be responsible for completing and paying for the following: (a) tap
water main in front of entrance; (b) installation of 6” service lateral and shut off
valve; (c) installation of meter box with street lid; (d) installation of 6” water meter;
and (e) patching of asphalt associated with the preceding items (City Work).
F. The Owner will be responsible for completing the following with the costs to be
funded under the Grant Agreement in accordance with the terms of this Agreement
and the Grant Agreement: (a) locate and expose existing distribution system
connection points; (b) installation of 6” C900 pipe from meter to distribution system;
(c) installation of 6” shut off valve at meter box; (d) patching of asphalt associated
with items a, b, and c; (e) disconnect wells from distribution system; (f) flush well
water from distribution system; and (g) abandon all three wells on the property in
accordance with the requirements set forth in this Agreement (On-Site Work).
G. The Grant Agreement requires that the City enter into a Water System
Consolidation Agreement with the Owner under certain terms specified in the
Grant Agreement.
H. The Parties now desire to set forth the terms of the consolidation.
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AGREEMENT
NOW, THEREFORE, in consideration of the mutual covenants set forth herein and for
other good and valuable consideration, the receipt and adequacy of which is hereby
acknowledged, the parties hereto, agree as follows:
A. Term. This Agreement shall commence upon the Effective Date, as evidenced in
the preamble, and shall remain in effect until September 30, 2061.
B. Master Meter Consolidation.
1. The Parties agree that the Project constitutes a master meter consolidation.
Upon completion of the Project, the Three Palms MHP WS will cease to operate
as a community water system and the Three Palms MHP will become a City
water customer.
2. Consistent with Health & Safety Code section 116280, following consolidation,
the Three Palms MHP WS will meet all the following conditions:
a. Three Palms MHP WS will consist only of distribution facilities and will
not have any treatment facilities.
b. Three Palms MHP WS will obtain all of its water from, but will not be
owned and operated by, the City’s public water system; and
c. Three Palms MHP WS will not sell water to any person or user. This
prohibition does not prevent Owner from submetering and/or passing
through the monthly water rates to the residents of Three Palms MHP.
3. The Parties agree that following consolidation, the City will be the restructured
water system, and the Owner will be the consolidated water system.
C. Construction Necessary to Establish Water Service. Connection to City’s public
water system by the Owner shall be subject to the following conditions:
1. Metered Service Connection. Connection to the City’s water system requires
installation of a master meter and meter vault for all domestic and irrigation
water uses required for the Three Palms MHP. As required by the Grant
Agreement, the City shall install a 6-inch water service connection, meter, and
meter vault to establish connection. The City shall be responsible for
performing all City Work.
2. Disconnection and Destruction of Existing Onsite Wells.
a. Prior to the City commencing water service, the Owner shall physically
disconnect the existing Three Palms Mobile Home Park Well 3.
b. Owner must also destroy the three (3) existing onsite wells in
compliance with the State of California Well Standards, Bulletin 74-81
and 74-90 or current revisions issued by California Department of Water
Resources and City of Fresno standards (Well Destruction). All Well
Destruction work must be performed by a C-57 licensed contractor. The
Owner must complete the well destruction no later than two months after
the establishment of a water service connection to the City’s water
system.
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c. In no case shall the physical disconnection of the existing Three Palms
Mobile Home Park Well 3 or the well destruction occur after
September 30, 2025.
d. Compliance with Grant Agreement Requirements. In the performance of
the On-Site Work, the Owner shall comply with all SWRCB Drinking
Water Construction Grant requirements, including those requirements
set forth in the Grant Agreement No. D2202042 which is attached as
Exhibit A and incorporated into this Agreement. This includes all
requirements pertaining to the prevailing wage and competitive bidding.
i. The Owner must assist the City in the completion of progress
reports and project completion reports, as addressed in
Exhibit A.5 and A.6 in the Grant Agreement. The Owner must
provide information requested for any reports required by the
Grant Agreement within 14 calendar days of a request from
the City.
ii. Once the SWRCB has authorized commencement of
construction and the Owner has commenced the On-Site
Work, the Owners shall submit monthly invoices to the City
documenting the contractor’s performance of the On-Site
Work.
iii. The City will pay the Owner no more than $169,000 per month
to pay the Owner’s contractor’s monthly invoices. In no event
shall the City pay the Owner more than the actual cost of the
work performed by the contractor.
iv. The City will submit the monthly invoices from the Owner’s
contractor to the SWRCB and will receive reimbursement
from the SWRCB for those invoiced amounts.
3. Surrender of Water System Permits. Upon connection to the City’s Water
System, the Owner shall contact the SWRCB Drinking Water Division and
surrender any domestic water supply permits or water system permits to ensure
that the Three Palms MHP WS ceases to exist and operate as a community
water system.
4. City to Provide Water Service. Upon the Owner’s full and complete
performance of all obligations and responsibilities under this agreement, City
agrees to commence water service, from City’s public water system to the
Owner. The Parties agree that, as set forth below, commencement of water
service is also conditioned on payment of all water capacity fees and
connection fees required by the City. All water capacity fees and connection
fees shall be paid for by grant funding, consistent with the terms of the Grant
Agreement.
a. Continuing Obligations and Responsibilities of Owner. The Three
Palms MHP will be established as a city water customer and the
Owner shall be responsible to pay the fees and rates established for
City water service and set forth in the City’s Master Fee Schedule.
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The Owner shall comply with and be subject to all regulations
applicable to City of Fresno water customers, including but not
limited to the water use regulations and utility billing and collection
procedures set forth in the Fresno Municipal Code.
b. Water Capacity and Water Connection Fees. The City’s obligation to
provide Services is conditioned on payment to City of all required
fees as determined by the City, which may be amended from time to
time, including any and all water capacity fees and water connections
fees required to establish service.
The Parties acknowledge that once calculated, the invoice for these
fees will be submitted, by the City, as water capacity and water
connection fees for reimbursement under the Grant Agreement. The
Owner is not obligated to directly pay any water capacity fees or
connection fees to the City.
5. Maintenance and Repair. The Owner shall be responsible for operation,
maintenance, repair, and replacement of all “Private Portions” of the water
system beyond the City’s Point of Service/Master Meter. Under no
circumstances shall City be required or accountable to maintain, repair or
replace the Private Portion or internal distribution system within Three Palms
MHP. The Owner’s obligation to maintain, repair and replace the Private
Portion of the water system shall include, without limitation, any operation and
maintenance, repair, replacement or modification of the Private Portion of the
water system as may be reasonably required by City. Should the Owner fail to
operate, maintain, repair and replace the Private Portion of the water system
as needed for proper operation of the Public Portion, the City shall have the
right, but not the obligation to stop providing water service. The City will be
responsible for maintaining the lateral from the City water main located at
Golden State Boulevard to the property line (Public Portion).
6. Fire Protection Upgrades. The Owner shall be solely responsible for meeting
any fire protection upgrades beyond the Point of Connection to the City’s water
supply facilities that may be required by the City as the enforcement agency
responsible for enforcing the requirements of the Mobilehome Parks Act,
Division 13, Part 2.1 of the California Health and Safety Code, commencing
with section 18200, and the implementing regulations set forth in Title 25,
California Code of Regulations Division 1, Chapter 2.
7. Right to Access and Inspect Water Meters. City shall have the right of entry to
access and inspect all water meters for compliance with AWWA standards,
whether located on the Private or Public Portions.
8. Exclusive Use of Private Portion. The Private Portion is for the exclusive use of
the Owner. After connection to the Public Portion, the Owner shall not permit
the Private Portion to be used, either directly or indirectly, to provide water
service to any other property regardless of whether the other property is owned
by the Owner or a third party. The Private Portion will be maintained solely for
the purpose of distributing water to the residents of Three Palms MHP.
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9. Construction of Public Water Facilities. All public water facilities shall be
constructed in accordance with City’s Public Works Department Standard
Specifications and Drawings, standards, specifications, and policies. The
Parties agree that the City will be constructing all public water facilities to be
funded by SWRCB funding.
D. Additional Provisions:
The following provisions shall apply to this entire Agreement:
1. Successors and Assigns. The covenants and agreements contained in this
Agreement shall be binding upon and shall inure to the benefit of the heirs,
successors, and assigns of the parties hereto. The Owner may not assign its
rights and/or obligations under this Agreement without the prior written consent
of the City, which consent shall not be unreasonably withheld. Any such
consent by City shall not, in any way, relieve the Owner of its obligations and
responsibilities under this Agreement.
2. Notice. Any notice required or intended to be given to either party under the
terms of this Agreement shall be in writing and shall be deemed to be duly given
if delivered personally, transmitted by facsimile followed by telephone
confirmation of receipt, or sent by United States registered or certified mail, with
postage prepaid, return receipt requested, addressed to the party to which
notice is to be given at the party’s address set forth on the signature page of
this Agreement or at such other address as the parties may from time to time
designate by written notice. Notice served by United States mail in the manner
above described shall be deemed sufficiently served or given at the time of the
mailing thereof.
3. Binding. Subject to Section 17, below, once this Agreement is signed by all
parties, it shall be binding upon, and shall inure to the benefit of, all parties, and
each parties’ respective heirs, successors, assigns, transferees, agents,
servants, employees and representatives.
4. Compliance With Law. In providing the services required under this
Agreement, the Owner shall at all times, comply with all applicable laws of the
United States, the State of California and City, and with all applicable
regulations promulgated by federal, state, regional, or local administrative and
regulatory agencies, now in force and as they may be enacted, issued, or
amended during the term of this Agreement.
5. Waiver. The waiver by either party of a breach by the other of any provision of
this Agreement shall not constitute a continuing waiver or a waiver of any
subsequent breach of either the same or a different provision of this
Agreement. No provisions of this Agreement may be waived unless in writing
and signed by all parties to this Agreement. Waiver of any one provision herein
shall not be deemed to be a waiver of any other provision herein.
6. Indemnification of City. To the furthest extent allowed by law, the Owner shall
indemnify, hold harmless and defend City and each of its officers, officials,
employees, agents and volunteers from any and all loss, liability, fines,
penalties, forfeitures, costs and damages (whether in contract, tort or strict
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liability, but not limited to personal injury, death at any time, and property
damage) incurred by City, the Owner or any other person, and from any and all
claims, demands, liabilities, damages and actions in law or equity (including
attorney’s fees and litigation expenses), arising or alleged to have arisen
directly or indirectly out of the performance of this Agreement and the
performance of any or all work to be done in and upon the street rights-of-way
or within the Owner’s property boundary, and premises adjacent thereto,
pursuant to this Agreement, or arising or alleged to have arisen directly or
indirectly in any way related to the construction, installation and operation of
the new supply pipeline or its appurtenances by anyone occupying any portion
of the Owner’s property including, without limitation, any such claims, causes
of action, damages, liabilities, fees, costs, expenses, and attorney fees arising
from water quality compliance, a lack of volume of water, inadequate fire flow,
lack of water pressure in, from or delivered to the new water supply pipeline, or
lack of flow capacity in the new water supply pipeline. The Owner’s obligations
under the preceding shall apply regardless of whether City or any of its officers,
officials, boards, employees, agents or volunteers are passively negligent, but
shall not apply to any loss, liability, fines, penalties, forfeitures, costs or
damages caused by the active or sole negligence, or the willful misconduct, of
City or any of its officers, officials, employees, agents or volunteers.
If the Owner should subcontract all or any portion of the work to be performed
under this Agreement, the Owner shall require each subcontractor to indemnify,
hold harmless and defend City and each of its officers, officials, employees,
agents and volunteers in accordance with the terms of the preceding
paragraph.
This section shall survive termination or expiration of this Agreement.
7. Insurance Requirements.
(a) Throughout the life of this Agreement, OWNER shall pay for and maintain
in full force and effect all insurance as required herein with an insurance
company(ies) either (i) admitted by the California Insurance Commissioner to
do business in the State of California and rated no less than “A-VII” in the Best’s
Insurance Rating Guide, or (ii) as may be authorized in writing by CITY'S Risk
Manager or his/her designee at any time and in his/her sole discretion. The
required policies of insurance as stated herein shall maintain limits of liability of
not less than those amounts stated therein. However, the insurance limits
available to CITY, its officers, officials, employees, agents and volunteers as
additional insureds, shall be the greater of the minimum limits specified therein
or the full limit of any insurance proceeds to the named insured.
(b) If at any time during the life of the Agreement or any extension, OWNER or
any of its subcontractors fail to maintain any required insurance in full force and
effect, all services and work under this Agreement shall be discontinued
immediately, and all payments due or that become due to OWNER shall be
withheld until notice is received by CITY that the required insurance has been
restored to full force and effect and that the premiums therefore have been paid
for a period satisfactory to CITY. Any failure to maintain the required insurance
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shall be sufficient cause for CITY to terminate this Agreement. No action taken
by CITY pursuant to this section shall in any way relieve OWNER of its
responsibilities under this Agreement. The phrase “fail to maintain any required
insurance” shall include, without limitation, notification received by CITY that
an insurer has commenced proceedings, or has had proceedings commenced
against it, indicating that the insurer is insolvent.
(c) The fact that insurance is obtained by OWNER shall not be deemed to
release or diminish the liability of OWNER, including, without limitation, liability
under the indemnity provisions of this Agreement. The duty to indemnify CITY
shall apply to all claims and liability regardless of whether any insurance
policies are applicable. The policy limits do not act as a limitation upon the
amount of indemnification to be provided by OWNER. Approval or purchase
of any insurance contracts or policies shall in no way relieve from liability nor
limit the liability of OWNER, vendors, suppliers, invitees, contractors, sub-
contractors, subcontractors, or anyone employed directly or indirectly by any of
them.
Coverage shall be at least as broad as:
1. The most current version of Insurance Services Office (ISO) Commercial
General Liability Coverage Form CG 00 01, providing liability coverage arising
out of your business operations. The Commercial General Liability policy shall
be written on an occurrence form and shall provide coverage for “bodily injury,”
“property damage” and “personal and advertising injury” with coverage for
premises and operations (including the use of owned and non-owned
equipment), products and completed operations, and contractual liability
(including, without limitation, indemnity obligations under the Agreement) with
limits of liability not less than those set forth under “Minimum Limits of
Insurance.”
2. The most current version of ISO *Commercial Auto Coverage Form CA 00
01, providing liability coverage arising out of the ownership, maintenance or
use of automobiles in the course of your business operations. The Automobile
Policy shall be written on an occurrence form and shall provide coverage for all
owned, hired, and non-owned automobiles or other licensed vehicles (Code 1-
Any Auto).
3. Workers’ Compensation insurance as required by the State of California
and Employer’s Liability Insurance.
MINIMUM LIMITS OF INSURANCE
OWNER shall procure and maintain for the duration of the contract insurance
with limits of liability not less than those set forth below. However, insurance
limits available to CITY, its officers, officials, employees, agents and volunteers
as additional insureds, shall be the greater of the minimum limits specified
herein or the full limit of any insurance proceeds available to the named
insured:
8
349873v1
1. COMMERCIAL GENERAL LIABILITY
(i) $1,000,000 per occurrence for bodily injury and property damage;
(ii) $1,000,000 per occurrence for personal and advertising injury;
(iii) $2,000,000 aggregate for products and completed operations; and,
(iv) $2,000,000 general aggregate applying separately to the work performed
under the Agreement.
2. COMMERCIAL AUTOMOBILE LIABILITY
$1,000,000 per accident for bodily injury and property damage.
3. Workers’ Compensation Insurance as required by the State of California
with statutory limits and EMPLOYER’S LIABILITY with limits of liability not less
than:
(i) $1,000,000 each accident for bodily injury;
(ii) $1,000,000 disease each employee; and,
(iii) $1,000,000 disease policy limit.
UMBRELLA OR EXCESS INSURANCE
In the event OWNER purchases an Umbrella or Excess insurance policy(ies)
to meet the “Minimum Limits of Insurance,” this insurance policy(ies) shall
“follow form” and afford no less coverage than the primary insurance
policy(ies). In addition, such Umbrella or Excess insurance policy(ies) shall also
apply on a primary and non-contributory basis for the benefit of the CITY, its
officers, officials, employees, agents and volunteers.
DEDUCTIBLES AND SELF-INSURED RETENTIONS
OWNER shall be responsible for payment of any deductibles contained in any
insurance policy(ies) required herein and OWNER shall also be responsible for
payment of any self-insured retentions.
OTHER INSURANCE PROVISIONS/ENDORSEMENTS
(i) All policies of insurance required herein shall be endorsed to provide that
the coverage shall not be cancelled, non-renewed, reduced in coverage or in
limits except after thirty (30) calendar days written notice has been given to
CITY, except ten (10) days for nonpayment of premium. OWNER is also
responsible for providing written notice to the CITY under the same terms and
conditions. Upon issuance by the insurer, broker, or agent of a notice of
cancellation, non-renewal, or reduction in coverage or in limits, OWNER shall
furnish CITY with a new certificate and applicable endorsements for such
policy(ies). In the event any policy is due to expire during the work to be
performed for CITY, OWNER shall provide a new certificate, and applicable
endorsements, evidencing renewal of such policy not less than seven (7)
calendar days following to the expiration date of the expiring policy.
(ii) The Commercial General and Automobile Liability insurance policies shall
be written on an occurrence form.
(iii) The Commercial General and Automobile Liability insurance policies shall
be endorsed to name City, its officers, officials, agents, employees and
9
349873v1
volunteers as an additional insured for all ongoing and completed operations.
The Commercial General endorsements must be as broad as that contained in
ISO Forms: GC 20 10 11 85 or both CG 20 12 04 13 or CG 20 26 04 13.
(iv) The Commercial General and Automobile Liability insurance shall contain,
or be endorsed to contain, that the OWNERS’ insurance shall be primary to
and require no contribution from the City. The General Liability endorsement
shall be as broad as that contained in ISO Form CG 20 01 04 13. These
coverages shall contain no special limitations on the scope of protection
afforded to City, its officers, officials, employees, agents and volunteers.
(v) If OWNER maintains higher limits of liability than the minimums shown
above, City requires and shall be entitled to coverage for the higher limits of
liability maintained by OWNER.
(vi) Should any of these policies provide that the defense costs are paid within
the Limits of Liability, thereby reducing the available limits by defense costs,
then the requirement for the Limits of Liability of these polices will be twice the
above stated limits.
(vii) All policies of insurance shall contain, or be endorsed to contain, a
waiver of subrogation as to CITY, its officers, officials, agents, employees and
volunteers.
PROVIDING OF DOCUMENTS
OWNER shall furnish CITY with all certificate(s) and applicable endorsements
effecting coverage required herein. All certificates and applicable
endorsements are to be received and approved by the CITY’S Risk Manager
or his/her designee prior to CITY’S execution of the Agreement and before work
commences. All non-ISO endorsements amending policy coverage shall be
executed by a licensed and authorized agent or broker. Upon request of CITY,
OWNER shall immediately furnish CITY with a complete copy of any insurance
policy required under this Agreement, including all endorsements, with said
copy certified by the underwriter to be a true and correct copy of the original
policy. This requirement shall survive expiration or termination of this
Agreement. All subcontractors working under the direction of OWNER shall
also be required to provide all documents noted herein.
SUBCONTRACTORS
If OWNER subcontracts any or all of the services to be performed under this
Agreement, OWNER shall be solely responsible for ensuring that its
subcontractors maintain the insurance coverage required herein.
8. Public Health, Safety, and Welfare. Nothing contained in this Agreement shall
limit City’s authority to exercise its police powers, governmental authority or
take other appropriate actions to address threats to public health, safety and
welfare, including temporarily suspending water services as deemed
appropriate by City in its sole determination and discretion.
9. Governing Law and Venue. This Agreement shall be governed by, and
construed and enforced in accordance with, the laws of the State of California,
10
349873v1
excluding, however, any conflict of laws rule which would apply the law of
another jurisdiction. Venue for purposes of the filing of any action regarding the
enforcement or interpretation of this Agreement and any rights and duties
hereunder shall be Fresno County, California.
10. Headings. The section headings in this Agreement are for convenience and
reference only and shall not be construed or held in any way to explain, modify,
or add to the interpretation or meaning of the provisions of this Agreement.
11. Severability. The provisions of this Agreement are severable. The invalidity or
unenforceability of any one provision in this Agreement shall not affect the other
provisions.
12. Interpretation. The parties acknowledge that this Agreement in its final form is
the result of the combined efforts of the parties and that, should any provisions
of this Agreement be found to be ambiguous in any way, such ambiguity shall
not be resolved by construing this Agreement in favor of or against either party,
but rather by construing the terms in accordance with their generally accepted
meaning.
13. Attorney’s Fees. If either party is required to commence any proceeding or
legal action to enforce or interpret any term, covenant or condition of this
Agreement, the prevailing party in such proceedings or action shall be entitled
to recover from the other party its reasonable attorney’s fees and legal
expenses.
14. Exhibits. Each exhibit and attachment referenced in this Agreement is, by the
reference, incorporated into and made a part of this Agreement.
15. Precedence of Documents. In the event of any conflict between the body of
this Agreement and any Exhibit or Attachment hereto, the terms and conditions
of the body of this Agreement shall control and take precedence over the terms
and conditions expressed within any Exhibit or Attachment hereto which
purport to modify the allocation of risk between the parties, provided for within
the body of this Agreement, shall be null and void.
16. Cumulative Remedies. No remedy or election hereunder shall be deemed
exclusive but shall, wherever possible, be cumulative with all other remedies at
law or in equity.
17. No Third-Party Benefits. The rights, interests, duties, and obligations defined
within this Agreement are intended for the specific parties hereto as identified
in the preamble of this Agreement. Notwithstanding anything stated to the
contrary in this Agreement, it is not intended that any rights or interests in this
Agreement benefit or flow to the interest of any third parties.
18. Extent of Agreement. Each party acknowledges that they have read and fully
understand the contents of this Agreement. This Agreement represents the
entire and integrated agreement between the parties with respect to the subject
matter hereof and supersedes all prior negotiations, representations or
agreements, either written or oral. This Agreement may be modified only by
written agreement duly authorized and executed by both City and the Owner.
11
349873v1
IN WITNESS THEREOF, the parties have executed the Agreement at Fresno, California,
the day and year first above written.
CITY OF FRESNO, a California
municipal corporation
By:__________________________
Brock D. Buche, PE, PLS
Director of Public Utilities
APPROVED AS TO FORM:
ANDREW JANZ
City Attorney
By:__________________________
Jennifer M. Quintanilla Date
Senior Deputy City Attorney
ATTEST:
TODD STERMER, CMC
City Clerk
By:__________________________
Deputy Date
Three Palms MH Park, LLC, a California
Limited Liability Company
By:
Name: Elias Weiner
Title: Manager
(If corporation or LLC., Board Chair,
Pres. or Vice Pres.)
By:
Name:
Title:
(If corporation or LLC., CFO,
Treasurer, Secretary or Assistant
Secretary)
REVIEWED BY:
_____________________________
Peter A. Maraccini, Licensed Engineering
Manager, Department of Public Utilities
Addresses:
CITY:
City of Fresno
Attention: Brock D. Buche, PE, PLS
Director of Public Utilities
1626 E Street
Fresno, CA 93706
Phone: (559) 621-8610
E-mail: Brock.Buche@fresno.gov
OWNER:
Three Palms MH Park, LLC
Attention: Elias Weiner, Manager
1910 Terracina Dr.
Sacramento, CA 95834
Phone: 530-400-2354
E-mail: eli@theboavidagroup.com
Attachments: Exhibit A – Grant Agreement
EXHIBIT A
RESOLUTION NO . 2021-110
A RESOLUTION OF THE COUNCIL OF THE CITY OF
FRESNO, CALIFORNIA, AUTHORIZING AND DIRECTING
THE PREPARATION AND SUBMISSION OF A FINANCIAL
ASSISTANCE APPLICATION TO THE CALIFORNIA STATE
WATER RESOURCES CONTROL BOARD FOR A WATER
CONNECTION TO THREE PALMS MOBILE HOME PARK
AND AUTHORIZING THE EXECUTION OF DOCUMENTS
WHEREAS , the residential community of Three Palms Mobile Home Park
(MHP), located within existing city limits, is identified as a small Disadvantaged
Community (DAC) per State Water Resources Control Board (SWRCB) Division of
Financial Assistance criteria; and
WHEREAS, Three Palms MHP is currently served by a single well and is not
connected to the City of Fresno (City) distribution system; and
WHEREAS , in March 2018, Three Palms MHP was issued a compliance order
by the SWRCB for exceedance of the 1,2,3-trichloropropane (1 ,2,3-TCP) Maximum
Contaminant Level (MCL) in the raw well water; and
WHEREAS, concentrations of 1,2,3-TCP in raw well water samples collected
between February 2018 and November 2020 have been nine (9) to twenty-four (24)
times greater than the MCL allowed in drinking water; and
WHEREAS, continued exceedance of a drinking water MCL presents a
persistent health risk to Three Palms MHP residents; and
WHEREAS , connection of the Three Palms MHP to the City's distribution system
would represent a consolidation of two water systems and provide access of the City's
water supply to Three Palms MHP residents ; and
Date Adopted: 04/28/2021
Date Approved : 05/03/2021
Effective Date: 05/03/2021
1 of 4
Resolution No. 2021-110
WHEREAS, in the Drinking Water State Revolving Fund (DWSRF) Intended Use
Plan for Fiscal Year 2020-21, the SWRCB promotes consolidation, where appropriate
and feasible, especially among small community water systems serving DACs; and
WHEREAS, the City is desirous of submitting a grant application to the SWRCB
for DWSRF funds for a water connection to Three Palms MHP; and
WHEREAS, the SWRCB requires that the governing body of the applicant submit
a resolution designating an authorized representative or their designee(s) to execute
application documents.
NOW, THEREFORE, BE IT RESOLVED BY THE Council of the City of Fresno
as follows:
1. The Council of the City of Fresno, California, authorizes and directs the
preparation and submission of a financial assistance application to the SWRCB for a
water connetion between the City and Three Palms Mobile Home Park.
2. The Department of Public Utilities (DPU) Director or designee(s) is hereby
authorized and directed to sign and file, for and on behalf of the City, a Financial
Assistance Application for a financing agreement from the SWRCB for the Three Palms
MHP Water Connection Project.
3. The City Attorney's Office is authorized and designated to provide legal
assurances, certifications, and commitments required for the financial assistance
application, including any amendments or charges thereto.
4. The DPU Director, or designee(s), is designated to represent the City in
carrying out the City's responsibilities under the financing agreements, including
certifying disbursement requests on behalf of the City and compliance with applicable
2 of 4
state and federal laws.
5. Subject to the foregoing provisions, the City certifies it has legal authority
to participate in the aforementioned grant programs with the state and federal
government.
6. Nothing in this resolution binds or obligates the City's general fund, taxing
authority, or borrowing power.
* * * * * * * * * * * * * *
3 of 4
STATE OF CALIFORNIA )
COUNTY OF FRESNO ) ss.
CITY OF FRESNO )
I, YVONNE SPENCE, City Clerk of the City of Fresno, certify that the foregoing
resolution was adopted by the Council of the City of Fresno, at a regular meeting held
on the 28 th day of April , 2021.
AYES :Arias, Bredefeld, Esparza, Karbassi, Maxwell, Soria, Chavez
NOES :None
ABSENT :None
ABSTAIN :None
Mayor Approval : -------------'M=ay1---=-3r_d ______ , 2021
Mayor Approval/No Return : N/A 2021
Mayor Veto : N/A , 2021
Council Override Veto : N/A , 2021
APPROVED AS TO FORM :
DOUGLAS T. SLOAN
City Attorney
YVONNE SPENCE, CRM MMC
City Clerk
4 of 4
April 29, 2021
TO: MAYOR JERRY DYER
FROM YVONNE SPENCE, MMC, CRM
City Clerk
Council Adoptio f1 t~A Q~ D
Mayor Approval :
Mayor Veto:
Override Reql~str.A Y -3 /\ iCJ : ! 6
SUBJECT: TRANSMITTAL OF COUNCIL ACTION FOR APPROVAL OR VETO
At the City Council meeting of April 28, 2021, Council adopted the attached Resolution No. 2021-
110, entitled ***RESOLUTION -Authorizing and directing the preparation and submission of a
financial assistance application to the State Water Resources Control Board for a water
connection between the City of Fresno and the Three Palms Mobile Home Park (Council District
3) (Subject to Mayor's Veto). Item 1-H, File ID21-531, by the following vote:
Ayes
Noes
Absent
Abstain
Arias, Bredefeld, Esparza, Karbassi, Maxwell, Soria, Chavez
None
None
None
Please indicate either your formal approval or veto by completing the following sections and
executing and dating your action. Please file the completed memo with the Clerk's office on or
before May 10, 2021. In computing the ten day period required by Charter, the first day has
been excluded and the tenth day has been included unless the 10 th day is a Saturday, Sunday,
or holiday, in which case it has also been excluded. Failure to file this memo with the Clerk's
office within the required time limit shall constitute approval of the ordinance, resolution or
action, and it shall take effect without the Mayor's signed approval.
~ov ~ NO RETURN: -----
VETOED for the following reasons: (Written objections are required by Charter; attach
additional sheets if necessary.)
/~~~
Je~yor
COUNCIL OVERRIDE ACTION:
Ayes
Noes
Absent
Abstain
Date :
Date : ---------
OF F,
d,
arse oct. .r.-
RESOLUTION NO. 2023-174
A RESOLUTION OF THE COUNCIL OF THE CITY OF
FRESNO, CALIFORNIA, AUTHORIZING THE DIRECTOR
OF THE DEPARTMENT OF PUBLIC UTILITIES OR
DESIGNEE TO ACCEPT FUNDS AND EXECUTE THE
FINANCIAL ASSISTANCE AGREEMENT AND ANY
AMENDMENTS THERETO WITH THE CALIFORNIA STATE
WATER RESOURCES CONTROL BOARD ON BEHALF OF
THE CITY OF FRESNO FOR A WATER CONNECTION TO
SERVE THREE PALMS MOBILE HOME PARK
WHEREAS, the residential community of Three Palms Mobile Home Park (MHP),
located within existing city limits, is identified as a small Disadvantaged Community (DAC)
per State Water Resources Control Board (SWRCB) Division of Financial Assistance
criteria-, and
WHEREAS, Three Palms MHP is currently served by a single well and is not
connected to the City of Fresno (City) drinking water distribution system; and
WHEREAS, in March 2018, Three Palms MHP was issued a compliance order by
the SWRCB for exceedance of the 1,2,3-Trichloropropane (1,2,3-TCP) Maximum
Contaminant Level (MCL) in the raw well water; and
WHEREAS, concentrations of 1,2,3-TCP in raw well water samples collected
between February 2018 and November 2020 have been nine (9) to twenty-four(24)times
greater than the MCL allowed in drinking water; and
WHEREAS, continued exceedance of a drinking water MCL presents a persistent
health risk to Three Palms MHP residents; and
1 of 3
Date Adopted: 06/08/2023
Date Approved: 06/14/2023
Resolution No. 2023-174EffectiveDate: 06/14/2023
1
rt
f
y,
L+ t
Y- ^
OF
WHEREAS, connection of the Three Palms MHP to the City's distribution system-
would represent a consolidation of two water systems and provide access of the City's
water supply to Three Palms MHP residents; and
WHEREAS, in the Drinking Water State Revolving Fund (DWSRF) Intended Use
Plan for Fiscal Year 2020-21, the SWRCB promotes consolidation, where appropriate
and feasible, especially among small community water systems serving DACs-, and
WHEREAS, the City submitted a grant application to the SWRCB for DWSRF
funds for a water connection to Three Palms MHP as authorized by Resolution No.
2021- 110; and
WHEREAS, Resolution No. 2021-110 authorized the DPU Director, ordesignee(s)
to represent the City in carrying out the City's responsibilities under the financing
agreements, including certifying disbursement requests on behalf of the City and
compliance with applicable state and federal laws-, and
WHEREAS, the SWRCB requires that the governing body of the applicant
designate an Authorized Representative to execute the financial assistance agreement
and any amendments thereto on behalf of the City.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Fresno as
follows:
1.The Council of the City of Fresno, California, authorizes this resolution.
2.The Director of the Department of Public Utilities or designee is hereby
authorized and directed to accept funds and execute the financial assistance agreement
and any amendments thereto with the State Water Resources Control Board on behalf of
2 of 3
lk OFF
the City of Fresno for a water connection to serve Three Palms Mobile Home Park, subject r. °°f'
to approval as to form by the City Attorney's Office.
3.This resolution shall be effective upon final approval.
STATE OF CALIFORNIA )
COUNTY OF FRESNO ) ss.
CITY OF FRESNO
I, TODD STERMER, City Clerk of the City of Fresno, certify that the foregoing
resolution was adopted by the Council of the City of Fresno, at a regular meeting held on
the 8th day of June 2023.
AYES Perea, Karbassi, Arias, Chavez, Bredefeld, Esparza
NOES None
ABSENT Maxwell
ABSTAIN None
Mayor Approval: June 14 2023
Mayor Approval/No Return NIA 2023
Mayor Veto N/A 2023
Council Override Vote: N/A 2023
TODD STERMER, CMC
City Clerk
By:
Deputy Date
APPROVED AS TO FORM:
ANDREW JANZ
City Attorney
By. P 1 Cl 23
ni)'br M- tuintanilla Date
Seni r Deputy City Attorney
3of3
OF F ;r
r
June 9, 2023 Council Adoption: 06/08/2023
Mayor Approval:
TO: MAYOR JERRY DYER Mayor Veto:
Override Request:
FROM; TODD STERMER, CMC
City Clerk
SUBJECT: TRANSMITTAL OF COUNCIL ACTION FOR APPROVAL OR VETO
At the City Council meeting of June 8, 2023, Council adopted the attached Resolution
No. 2023-174 'RESOLUTION - Authorizing the Director of the Department of
Public Utilities or designee to accept funds and execute the financial assistance
agreement and any amendments thereto with the California State Water
Resources Control Board on behalf of the City of Fresno for a water connection
to serve Three Palms Mobile Home Park. (Subject to Mayor's Veto) Item 1-G, File
ID 23-851, by the following vote:
Ayes Perea, Karbassi, Arias, Chavez, Bredefeld, Esparza
Noes None
Absent Maxwell
Abstain None
Please indicate either your formal approval or veto by completing the following sections
and executing and dating your action. Please file the completed memo with the Clerk's
office on or before June 19, 2023. In computing the ten day period required by Charter,
the first day has been excluded and the tenth day has been included unless the 10th day
is a Saturday, Sunday, or holiday, in which case it has also been excluded. Failure to file
this memo with the Clerk's office within the required time limit shall constitute approval of
the ordinance, resolution or action, and it shall take effect without the Mayor's signed
approval.
APP IIEl67 /NO RETURN:
VETOED for the following reasons: (Written objections are required by Charter; attach
additional sheets if necessary.)
Date:
JerF/Dyer, Mayor r X i,4
COUNCIL OVERRIDE ACTION: Date:
Ayes
Noes
Absent A !7.1
Abstain
HUGHES?Three Palms MHP
Location
AÎE
CLINTON
MCKINLEY
G
O
L
D
E
N
S
T
A
T
EPARKWAYYALE
PINE WEST0 400 800
Feet
º Three Palms
Mobile Home Park
Fresno, CA
Legend
Existing Water Main
Proposed Service
Three Palms MHP Limits
2/12/2021 : G:\Self Help Enterprises-1875\187520007-Three Palms MHP\400 GIS\Map\Three_Palms_MHP_Location.mxd
Vicinity Map
City of Fresno
Staff Report
2600 Fresno Street
Fresno, CA 93721
www.fresno.gov
File #:ID 25-172 Agenda Date:1/30/2025 Agenda #:
2.-R.
REPORT TO THE CITY COUNCIL
FROM:BROCK D. BUCHE, PE, PLS, Director
Department of Public Utilities
BY:AHMAD ALKHAYYAT, PE, MBA, Assistant Director
Department of Public Utilities - Solid Waste Management Division
SUBJECT
***RESOLUTION - Declaring an urgent necessity for the preservation of life, health, property and
authorizing the City Manager or designee, to enter into agreements without advertised competitive
bidding for the emergency landfill gas collection and control system repairs and site security
improvements at the Fresno Municipal Sanitary Landfill Superfund Site (Requires 5 affirmative votes)
(Subject to Mayor’s veto)
RECOMMENDATION
City of Fresno Printed on 2/7/2025Page 1 of 1
powered by Legistar™
1-30-2025
MA/AP 6-0
DISTRICT 5 (VACANT) ABSENT
CORRECTED ON DAIS
APPROVED ON CONSENT
R. 2025-23
REPORT TO THE CITY COUNCIL
FROM: BROCK D. BUCHE, PE, PLS, Director
Department of Public Utilities
BY: AHMAD ALKHAYYAT, PE, MBA, Assistant Director
Department of Public Utilities – Solid Waste Management Division
SUBJECT
..Title
Actions pertaining to the emergency Landfill Gas Collection and Control System repairs and site
security improvements at the Fresno Municipal Sanitary Landfill superfund site (Council District 3):
1.Adopt a finding of Categorical Exemption per staff determination, pursuant to Section 15308
(Class 8) of the California Environmental Quality Act guidelines for the remedial action project
for the Fresno Sanitary Landfill
2.***RESOLUTION – Declaring an urgent necessity for the preservation of life, health, property
and authorizing the City Manager or designee, to enter into agreements without advertised
competitive bidding for the preparation and implementation of emergency landfill gas and
collection system repairs and site security improvements at the Fresno Sanitary Landfill
Superfund Site (Requires 5 affirmative votes) (Subject to Mayor’s veto)
..Body
RECOMMENDATION
Staff recommends the City Council adopt findings of Categorical Exemption pursuant to Section 15308
(Class 8) and adopt a Resolution declaring an urgent necessity for the preservation of life, health, and
property; and authorizing the City Manager or designee, to enter into agreements without advertised
competitive bidding for the preparation and implementation of the emergency repairs and site security
improvements for the Fresno Sanitary Landfill (FSL).
EXECUTIVE SUMMARY
On January 6, 2025, the FSL flare station was vandalized and caused severe damage to the electrical
lines supplying power to the control panels and equipment. The damage caused the flare station to be
out of service and needs to be back online as soon as possible.
A declaration of Urgent Necessity is now necessary for the preservation of the health and safety of the
surrounding area. The Resolution will allow the Department of Public Utilities (DPU) to procure services
without advertising for competitive bids and enter into various agreements for performing the necessary
emergency repairs estimated not to exceed $600,000 for the needed electrical, controls, and site
security improvements.
BACKGROUND
In June 1998, the City of Fresno entered into an agreement with the United States Environmental
Protection Agency (US EPA) to conduct the final cleanup of the FSL. Since 1998, the City has
undertaken ongoing cleanup efforts of the FSL as required by its agreement with the US EPA, with the
goal of the FSL being removed from the National Priority List.
As part of the ongoing cleanup efforts, Tetra Tech was recently contracted to performs regular
maintenance and repairs of the Landfill Gas Collection and Control System (LFGCCS) equipment to
keep the flare station running continuously to prevent landfill gas migration. During a routine monitoring
event on January 6, 2025, it was discovered that the FSL flare station control panel and Motor Control
Center (MCC) panel internals and wires were severely vandalized, and the flare station has been down
since then.
Tetra Tech will perform the emergency electrical repairs and wiring at the flare station, replace the
damaged control panels, and disconnect the existing malfunctioned LFGCCS Blowers #1 and #2 and
coordinate the full repairs and installation of the blowers.
To further deter vandalism at the FSL flare station, parameter security improvements are necessary.
Staff recommend the installation of security fence toppers to prevent individuals from jumping over the
fence into the flare station site.
This imminent failure to operate presents a risk to the health and safety of the community and the
essential operations of the LFGCCS of the FSL and requires a Declaration of Urgent Necessity
(Declaration) for immediate repairs. The Declaration will authorize dispensing of the competitive bid
process to expedite the procurement of contractor services for the preparation and implementation of
remedial action plan for the FSL. The City Attorney’s office has reviewed and approved the Resolution
as to form.
ENVIRONMENTAL FINDINGS
This project is under the oversight of the US EPA and the California Department of Toxic Substances.
The City of Fresno’s FSL was placed on the National Priority List in 1989 due to migrating gases from
years of receiving waste of all types at an unlined sanitary landfill.
Staff has determined that a Categorical Exemption is appropriate, based on Class 8 Section 15308 of
the California Environmental Quality Act guidelines. This section exempts actions taken by regulatory
agencies, as authorized by state or local ordinance, to assure the maintenance, restoration,
enhancement, or protection of the environment where the regulatory process involves procedures for
the protection of the environment. This project involves compliance with requirements set forth by a
regulatory agency for the protection of the environment.
LOCAL PREFERENCE
Local preference was not implemented because this action is being performed on an emergency basis.
FISCAL IMPACT
There is no impact to the General Fund. The project is located in Council District 3. Funding for this
project is budgeted and funded through the City Landfill Post Closure Fund FY 2024 Budget. The City
Landfill Post Closure Fund is funded equally by residential and commercial solid wastes resources.
Attachment:
25-172 – Resolution of Urgent Necessity
1 of 3
Date Adopted:
Date Approved:
Effective Date:
City Attorney Approval: ______ Resolution No.
RESOLUTION NO.
A RESOLUTION OF THE COUNCIL OF THE CITY OF
FRESNO, CALIFORNIA, DECLARING AN URGENT
NECESSITY FOR THE PRESERVATION OF LIFE,
HEALTH, PROPERTY AND AUTHORIZING THE CITY
MANAGER OR DESIGNEE TO ENTER INTO
AGREEMENTS WITHOUT ADVERTISED COMPETITIVE
BIDDING FOR THE PREPARATION AND
IMPLEMENTATION OF EMERGENCY LANDFILL GAS
AND COLLECTION SYSTEM REPAIRS AND SITE
SECURITY IMPROVEMENTS AT THE FRESNO
SANITARY LANDFILL SUPERFUND SITE.
WHEREAS, the City of Fresno (City) owns and operates the Fresno Sanitary
Landfill (Landfill) located at 1707 West Jensen Avenue; and
WHEREAS, the Landfill was placed on the National Priority List in 1989 due to
migrating gases from years of receiving wastes of all types at an unlined sanitary
landfill; and
WHEREAS, this project is under oversight of the United States Environmental
Protection Agency (US EPA) and the California Department of Toxic Substances; and
WHEREAS, the Fresno Sanitary Landfill Flare Station was vandalized and
caused damage to electrical feeder breaker and control panels; and
WHEREAS, US EPA was informed and has directed the city to prepare and
mitigate the damage; and
WHEREAS, the continued operation of the Landfill Gas Collection and Control
System is essential for the health and safety of the community; and
WHEREAS, further delays and proceeding through a formal bid process could
have serious negative impact on the operation of the Landfill Gas Collection and
2 of 3
Control System and the health and safety of the surrounding area and community at
large; and
WHEREAS, entering into agreements, without competitive bidding for various
services, is necessary for the timely performance of the emergency remediation work.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Fresno as
follows:
1. The foregoing facts constitute an urgent necessity for the preservation
of life, health, or property.
2. The requirement of advertising for bids is hereby waived pursuant to
Charter Section 1208(a).
3. The City Manager or designee is authorized to negotiate, enter and
execute service agreements, materials purchase agreements, and a construction
contract for the emergency repairs and site security improvements of the Landfill Gas
Collection and Control System at the Fresno Municipal Sanitary Landfill, at a cost not
to exceed $600,000, subject to prior approval as to form.
4. The Council finds the Project in the best interest of the City.
5. This resolution shall be effective upon final approval.
* * * * * * * * * * * * * *
3 of 3
STATE OF CALIFORNIA )
COUNTY OF FRESNO ) ss.
CITY OF FRESNO )
I, TODD STERMER, City Clerk of the City of Fresno, certify that the foregoing
resolution was adopted by the Council of the City of Fresno, at a regular meeting
held on the day of 2025.
AYES :
NOES :
ABSENT :
ABSTAIN :
Mayor Approval: , 2025
Mayor Approval/No Return: , 2025
Mayor Veto: , 2025
Council Override Vote: , 2025
TODD STERMER, CMC
City Clerk
By:
Deputy Date
APPROVED AS TO FORM:
ANDREW JANZ
City Attorney
By:
Christine C. Charitar Date
Deputy City Attorney
City of Fresno
Staff Report
2600 Fresno Street
Fresno, CA 93721
www.fresno.gov
File #:ID 25-102 Agenda Date:1/30/2025 Agenda #:
2.-S.
REPORT TO THE CITY COUNCIL
FROM:SCOTT L. MOZIER, PE, Director
Public Works Department
BY:BRIAN E. RUSSELL, Assistant Director
Public Works Department, Streets, Landscape, and Graffiti Divisions
ERIK LAFON, Project Manager
Public Works Department, Landscape Maintenance Division
SUBJECT
Award a Requirements Contract to Briner & Son Inc. of Fresno, California, to provide Landscape
Maintenance Services to Community Facilities District No. 15 within the City of Fresno, for one year
with seven optional one-year extensions in an amount not to exceed $128,586.28 per year plus an
annual 20% contingency (RFP No. 12500184), and to authorize the Public Works Director or
designee to sign the contract on behalf of the City. (Council District 6)
RECOMMENDATION
Staff recommends that the City Council award a Requirements Contract for one-year with seven
optional one-year extensions in an amount not to exceed $128,586.28 per year plus an annual 20%
contingency to Briner & Son Inc. of Fresno, California, as the best value for Landscape Maintenance
Services - Community Facilities District No. 15, and to authorize the Public Works Director or
designee to sign the contract on the City’s behalf.
EXECUTIVE SUMMARY
The Landscape Division of Public Works is seeking a Requirements Contract to provide landscape
maintenance services for Community Facilities District No. 15 (CFD No. 15). The contract funding
source is CFD No. 15. The Landscape Maintenance Division is responsible for maintaining CFD No.
15 and strives to deliver services that meet the City’s standards. The areas to be maintained include
landscaped beds along streets, trails, and median islands. This Request for Proposal (RFP) was
advertised and then evaluated by an Evaluation Committee (Committee) with the goal of awarding a
contract to the proposal that provides the best value for the City. The proposal submitted by Briner &
Son Inc. was determined to provide the best value for the City.
BACKGROUND
CFD No. 15, also known as The East Copper River Ranch Maintenance District, funds the
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CFD No.15,also known as The East Copper River Ranch Maintenance District,funds the
maintenance of public improvements,including landscaping services within its boundaries.Located
near the northwest corner of East Copper Avenue and North Willow Avenue,CFD No.15 covers
maintenance of landscaped areas,trees,irrigation systems,median island improvements,and park
landscaping.This includes tasks such as mowing,edging,fertilizing,pruning,and replacing trees and
shrubs,as well as repairing and maintaining irrigation systems.The City of Fresno is responsible for
providing these landscaping services, either directly or through contracted third-party providers.
The landscape area is primarily maintained by contractors under City contract and developers,while
City crews maintain a small section of public trail.The goal of this RFP is to consolidate all landscape
maintenance services into a single,comprehensive package,ensuring a high level of service and
preserving the appearance of the area.It is anticipated that the scope of work will grow as
development within CFD No. 15 progresses, incorporating new landscape areas into the contract.
On August 2,2024,the City posted the RFP on Planet Bids to provide the City with landscape
maintenance services.
Following the receipt of three proposals on September 24,2024,an Evaluation Committee was
established.The Committee included the Public Works Manager,Landscape Superintendent,and
Landscape Project Manager from the Landscape Division,along with a PARCS Projects
Administrator from the PARCS Department,a Supervising Engineering Technician from the
Department of Public Works Land Planning and Subdivision Inspection Section,and members of the
Procurement team assigned to the project(s).The goal of the Committee was to thoroughly review
each proposal resulting in a recommendation of the proposal which represented the best value to
Council.As part of the review,the Committee members evaluated the proposers on 1)cost as
shown on the proposal form,2)ability to meet the stated service requirements,3)past performance
and experience based on references,4)conformance to the terms and conditions of the RFP,5)
financial stability based on information provided on the Statement of Qualifications,and 6)other
related information.In addition to the established criteria,the Committee also reviewed information
collected from follow-up questionnaires and reference feedback.
The Committee met three times over the course of approximately two months to evaluate proposals
submitted by three separate contractors.The evaluation process included detailed reviews of all
three proposals,discussions about the required service levels,additional requests for information,
best and final offer requests, and a thorough vetting process with reference checks.
At the end of the selection process,the committee was unanimous in their decision to recommend
Briner & Son Inc. for the following reasons:
•Cost -Two of the three proposals,from New Image Landscape Company and Elite
Maintenance &Tree Service (EMTS),exceeded department estimate parameters.Briner &Son Inc.
submitted the lowest proposal,which was $86,495.87 lower than the next lowest proposal,making
their proposal especially appealing given the limited funding available from the special tax collection.
•Ability -The Committee inquired about the number of individuals dedicated to the contract.
Briner &Son Inc.offered a larger crew than both New Image Landscape Company and EMTS,which
is critical for ensuring adequate service.EMTS's limited two-person team was deemed insufficient for
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the specified area.
•Past Performance and Experience -City staff have previous working relationships with
EMTS and Briner &Son Inc.With EMTS,City staff often had to spend considerable time inspecting
serviced sites for corrections,leading to repeated service cycle delays.In contrast,Briner &Son Inc.,
despite some irrigation issues,demonstrated a commitment to improvement and utilized a dedicated
work order program for efficient issue resolution.The City staff has no prior experience with New
Image Landscape Company.
•Financial Stability - All three proposals provided proof of solid company financial positions.
The Committee carefully and thoroughly considered all aspects of the submitted proposals.
Appropriate consideration was given to all criteria as set forth in the RFP.Ultimately,the Committee
determined the Briner & Son Inc. proposal represented the best value for the City.
The City Attorney’s Office has reviewed and approved as to form.
Staff recommends that the City Council award a Requirements Contract for one-year with seven
optional one-year extensions in an amount not to exceed $128,586.28 per year plus an annual 20%
contingency to Briner &Son Inc.of Fresno,California,as the best value for Landscape Maintenance
Services -Community Facilities District No.15,and to authorize the Public Works Director or
designee to sign the contract on the City’s behalf.
ENVIRONMENTAL FINDINGS
Pursuant to California Environmental Quality Act (CEQA)Guidelines Section 15378,the awarding of
this contract is not a project for the purposes of CEQA.
LOCAL PREFERENCE
Local preference is not applicable.However,the recommended proposer maintains its headquarters
within the City of Fresno.
FISCAL IMPACT
Appropriations for Landscape Maintenance Services consist of CFD No.15 funding and do not
impact the General Fund.
Attachment:
Bid Evaluation and Committee Report
Vicinity Map
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F ria n t R d
Willow AveCopper Ave
Alicante Dr
Maple AveChestnut AveC o p p e r R i v e r D r
Internati
onal
AveAlicante DrA lic a n te D rA l i c a n t e D r
Zone 1
/CFD15 Exhibit Key Map - Landscape Bid Area
Department of Public Works, Landscape Maintenance Division
Zone 2
Zone 4Zone 3
Legend
CFD15_Grid
CFD15
Streets
City of Fresno
Staff Report
2600 Fresno Street
Fresno, CA 93721
www.fresno.gov
File #:ID 25-66 Agenda Date:1/30/2025 Agenda #:2.-T.
REPORT TO THE CITY COUNCIL
FROM:SCOTT MOZIER, PE, Director
Public Works Department
BY:JILL M. GORMLEY, TE, Assistant Director
Public Works Department, Traffic & Engineering Services Division
SUBJECT
RESOLUTION - Authorizing the Submission of a Planning Grant Application to the Office of the
Secretary (OST), US Department of Transportation (DOT) for the 2025 Rebuilding American
Infrastructure with Sustainability and Equity (RAISE) Program for project planning, preparation,
and/or design activities for the Shaw Avenue and State Route 99 Freeway Interchange Improvement
project; and Authorizing the Execution of Grant Application and Grant Agreement Documents by the
Public Works Director or Designee (Council Districts 1 and 2).
RECOMMENDATION
Staff recommends that the City Council adopt a resolution authorizing the submission of a grant
application to the RAISE Grant Program for a Planning Project that aims for safety improvements;
environmental sustainability; quality of life; mobility and community connectivity; economic
competitiveness and opportunity including tourism; state of good repair; partnership and
collaboration; and innovation for the Shaw Avenue and State Route 99 Interchange Improvement
project; and authorize the execution of all grant application and grant agreement documents by the
Public Works Director or designee.
EXECUTIVE SUMMARY
Staff is requesting authorization to submit a grant application to the RAISE Grant Program for a
planning project to improve the connectivity and cohesion for residences of the rural communities on
the west side of State Route 99 by improving the Shaw Avenue and State Route 99 interchange. The
planning grant seeks up to $5 million in funds allowing the City of Fresno to partner with Caltrans to
prepare the Project Initiation Document (PID), California Environmental Quality Act (CEQA) and/or
National Environmental Policy Act (NEPA) environmental documents, and the Project Report.
Preparation of these documents is a needed phase in moving an improvement project at the
interchange along to construction. Improvements to the Shaw Avenue and State Route 99
interchange should address safety concerns, geometric deficiencies, pedestrian and bicycle access,
transit expansion, congestion, and future operational needs to accommodate the City’s planned
growth.
The goal of the RAISE program is to fund eligible surface transportation projects that will have a
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File #:ID 25-66 Agenda Date:1/30/2025 Agenda #:2.-T.
The goal of the RAISE program is to fund eligible surface transportation projects that will have a
significant local or regional impact that advance the Departmental priorities of safety,equity,climate
and sustainability,and workforce development,job quality,and wealth creation,consistent with law,
and as described in the Department’s Strategic Plan and in executive orders.
BACKGROUND
State Route 99 is one of the most significant regional and goods transportation corridors in California.
It provides a north/south connection to cities and communities in the San Joaquin Valley and to the
rest of the state.In the City of Fresno,the Shaw Avenue and State Route 99 interchange was
constructed in 1960 when the population of the City of Fresno was approximately 133,000.The
population grew four-fold to a census-estimated 2020 population of 546,000 therefore the intersection
has since become an integral part of the transportation network with Shaw Avenue serving as a
major east-west arterial in the city extending from the western end of Fresno to the neighboring City
of Clovis to the east.In February 2012,State Route 99 was widened from a four-lane to a six-lane
freeway with the construction of two additional lanes in the median.Traffic operational analysis
conducted in 2021 shows that the Shaw Avenue and State Route 99 Interchange south and
northbound ramp intersections will operate unacceptably at level of service E and F (control delays in
excess of 55 seconds)by 2035 with long delays for both the AM and PM peak hours expected.The
Fresno Council of Governments forecasts that the Fresno Sphere of Influence population will
continue to grow to 904,000 in 2050.The City of Fresno’s population growth will increase the traffic
demands on the interchange and further increase congestion within and nearby the interchange.
Economic benefits expected at project completion include travel time savings by removing the
bottlenecks and improving interactions between roadway users with an increase in active modes of
transportation (bike and pedestrian facilities)for residence will increase overall human productivity.
Additional economic benefits include job creation,new business development in the area which will
increase local sales tax revenues,increase property values with secondary benefits of new
employees and residences spending at local businesses,buying local houses,and paying local
taxes.
The Infrastructure Investment and Jobs Act (Pub.L.117-58,November 15,2021,“Bipartisan
Infrastructure Law,”or “BIL”)authorized and appropriated $1.5 billion annually to be awarded by the
DOT 2022 -FY 2026 for Local and Regional Project Assistance Program Grants under National
Infrastructure Investments.The program is codified at 49 U.S.C.6702.The BIL requires the DOT to
publish a Notice of Funding Opportunity (NOFO)no later than 60 days after funds are made available
for the program,which for FY 2025 is November 1,2024.In order to comply with this requirement,
this NOFO solicits applications for projects to be funded under the Local and Regional Project
Assistance Program, known as the RAISE Grants program.
Applications are due on January 30,2025.Projects selected for funding must be able to enter into an
agreement with the OST,DOT by September 30,2029,and expend the funds no later than
September 30, 2034. The City Attorney’s office has reviewed and approved the resolution as to form.
ENVIRONMENTAL FINDINGS
Adoption of a resolution of support for a grant application is not a project as defined by California
Environmental Quality Act (CEQA) Guidelines Section 15378.
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LOCAL PREFERENCE
Local preference is not included because this resolution does not include a bid or award of a
construction or services contract.
FISCAL IMPACT
This resolution will have no impact on the General Fund. If the grant is awarded, the required 20%
local match will be identified for future fiscal year budgets.
Attachments:
Resolution
Vicinity Map
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1 of 3 Date Adopted: Date Approved: Effective Date: City Attorney Approval: ______ Resolution No.
RESOLUTION NO. ____________
RESOLUTION OF THE COUNCIL OF THE CITY OF FRESNO,
CALIFORNIA, AUTHORIZING THE SUBMISSION OF A
PLANNING GRANT APPLICATION FOR THE 2025
REBUILDING AMERICAN INFRASTRUCTURE WITH
SUSTAINABILITY AND EQUITY (RAISE) CALL FOR
PROJECTS FROM THE OFFICE OF THE SECRETARY
(OST), US DEPARTMENT OF TRANSPORTATION (DOT) TO
FUND PLANNING, PREPARATION, AND/OR DESIGN
ACTIVITIES FOR THE SHAW AVENUE AND STATE ROUTE
99 FREEWAY INTERCHANGE IMPROVEMENT PROJECT,
AND AUTHORIZING THE EXECUTION OF GRANT
AGREEMENT AND APPLICATION RELATED DOCUMENTS
BY THE PUBLIC WORKS DIRECTOR OR DESIGNEE
WHEREAS, the City of Fresno is an eligible applicant of the 2025 Rebuilding
American Infrastructure with Sustainability and Equity (RAISE) Program; and
WHEREAS, eligible entities can use RAISE funds for the purpose of planning
projects that will improve safety; environmental sustainability; quality of life; mobility and
community connectivity; economic competitiveness and opportunity including tourism;
state of good repair; partnership and collaboration; and innovation; and
WHEREAS, the Office of the Secretary (OST), US Department of Transportation
(DOT) has issued a Notice of Funding Opportunity for an estimated available funding of
approximately $1,500,000,000.00 for RAISE; and
WHEREAS, the Department of Public Works intends to submit a planning grant
application for funding of the planning, preparation, and/or design activities of the Shaw
Avenue and State Route 99 Freeway Interchange Improvement project; and
WHEREAS, the Shaw Avenue and State Route 99 Freeway Interchange
Improvement project should improve the connectivity and cohesion for residences of the
2 of 3
rural communities on the west side of State Route 99 and the improvements should
address safety concerns, geometric deficiencies, pedestrian and bicycle access, transit
expansion, congestion, and future operational needs to accommodate the City’s planned
growth; and
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Fresno as
follows:
1. The Council approves and supports the application(s) for the grant funding
from the OST, DOT, 2025 RAISE for the eligible projects and participation therein
consistent with constitutional and local law requirements and this resolution.
2. The Council appoints and authorizes the Director of Public Works or
designee, to execute and submit all grant application related documents and execute
grant related agreements on behalf of the City of Fresno, subject to prior approval as to
form by the City Attorney’s Office.
3. This resolution shall be effective upon final approval.
3 of 3
* * * * * * * * * * * * * *
STATE OF CALIFORNIA )
COUNTY OF FRESNO ) ss.
CITY OF FRESNO )
I, TODD STERMER, City Clerk of the City of Fresno, certify that the foregoing
resolution was adopted by the Council of the City of Fresno, at a regular meeting held on
the day of 2025.
AYES :
NOES :
ABSENT :
ABSTAIN :
TODD STERMER, CMC
City Clerk
By:
Date
Deputy
APPROVED AS TO FORM:
ANDREW JANZ
City Attorney
By:
Tricia Herrera Date
Deputy City Attorney
L:\01 GRANTS\Grants Files\2025\2025 RAISE\06. Cover Page, Map\Vicinity Map\Vicinity Map.dwg - Plot Date: 1-21-25 05:06:36 PM - Plot By: jesusgarVICINITY MAP
DEPARTMENT OF
PUBLIC WORKS
SCALE:
Project ID: Proposed
RAISE GRANT
Council District: 1,2NTS
SHAW
BARSTOW
SIERRA
HERNDON
99
41
180
168
TEMPERANCEDAKOTA
PROJECT
LOCATION
ALLUVIAL
NEES
TEAGUE
SHEPHERD
PERRIN
BEHYMER
INTERNATIONAL
COPPER
ASHLAN
SHIELDS
CLINTON
McKINLEY
OLIVE
BELMONT
CESAR CHAVEZ
TULARE
BUTLER
CALIFORNIA
CHURCH
JENSEN
ANNADALE
NORTH
ARMSTRONGFOWLERSUNNYSIDECLOVISPEACHWILLOWGETTYSBURG
CHESTNUTMAPLECEDARORANGEEASTCHERRYELMFIGWALNUTFRUITWESTMARKSVALENTINEBRAWLEYBLYTHECORNELIAHAYESGRANTLANDGARFIELDPOLKBRYANBULLARD
DISTRICT 1
DISTRICT 2
DISTRICT 3
DISTRICT 4
DISTRICT 5
DISTRICT 6
DISTRICT 7BLACKSTONEFRESNOFIRSTWILLOWMILLBROOKCEDARMAPLECHESTNUTCORNELIAHAYESGRANTLANDGARFIELDPOLKBRYANFRUITWESTMARKSVALENTINEBRAWLEYBLYTHEVAN NESSPALMMAROA
1 of 3 Date Adopted: Date Approved: Effective Date: City Attorney Approval: ______ Resolution No.
RESOLUTION NO. ____________
RESOLUTION OF THE COUNCIL OF THE CITY OF FRESNO,
CALIFORNIA, AUTHORIZING THE SUBMISSION OF A
PLANNING GRANT APPLICATION FOR THE 2025 BETTER
UTILIZING INVESTMENTS TO LEVERAGE DEVELOPMENT
(BUILD) CALL FOR PROJECTS FROM THE OFFICE OF THE
SECRETARY (OST), US DEPARTMENT OF
TRANSPORTATION (DOT) TO FUND PLANNING,
PREPARATION, AND/OR DESIGN ACTIVITIES FOR THE
SHAW AVENUE AND STATE ROUTE 99 FREEWAY
INTERCHANGE IMPROVEMENT PROJECT, AND
AUTHORIZING THE EXECUTION OF GRANT AGREEMENT
AND APPLICATION RELATED DOCUMENTS BY THE
PUBLIC WORKS DIRECTOR OR DESIGNEE
WHEREAS, the City of Fresno is an eligible applicant of the 2025 Better Utilizing
Investments to Leverage Development (BUILD) Program; and
WHEREAS, eligible entities can use BUILD funds for the purpose of planning
projects that will improve safety; environmental sustainability; quality of life; mobility and
community connectivity; economic competitiveness and opportunity including tourism;
state of good repair; partnership and collaboration; and innovation; and
WHEREAS, the Office of the Secretary (OST), US Department of Transportation
(DOT) has issued a Notice of Funding Opportunity for an estimated available funding of
approximately $1,500,000,000.00 for BUILD; and
WHEREAS, the Department of Public Works intends to submit a planning grant
application for funding of the planning, preparation, and/or design activities of the Shaw
Avenue and State Route 99 Freeway Interchange Improvement project; and
WHEREAS, the Shaw Avenue and State Route 99 Freeway Interchange
Improvement project should improve the connectivity and cohesion for residences of the
2 of 3
rural communities on the west side of State Route 99 and the improvements should
address safety concerns, geometric deficiencies, pedestrian and bicycle access, transit
expansion, congestion, and future operational needs to accommodate the City’s planned
growth.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Fresno as
follows:
1. The Council approves and supports the application(s) for the grant funding
from the OST, DOT, 2025 BUILD for the eligible projects and participation therein
consistent with constitutional and local law requirements and this resolution.
2. The Council appoints and authorizes the Director of Public Works or
designee, to execute and submit all grant application related documents and execute
grant-related agreements on behalf of the City of Fresno, subject to prior approval as to
form by the City Attorney’s Office.
3. This resolution shall be effective upon final approval.
3 of 3
* * * * * * * * * * * * * *
STATE OF CALIFORNIA )
COUNTY OF FRESNO ) ss.
CITY OF FRESNO )
I, TODD STERMER, City Clerk of the City of Fresno, certify that the foregoing
resolution was adopted by the Council of the City of Fresno, at a regular meeting held on
the day of 2025.
AYES :
NOES :
ABSENT :
ABSTAIN :
TODD STERMER, CMC
City Clerk
By:
Date
Deputy
APPROVED AS TO FORM:
ANDREW JANZ
City Attorney
By:
Tricia Herrera Date
Deputy City Attorney
City of Fresno
Staff Report
2600 Fresno Street
Fresno, CA 93721
www.fresno.gov
File #:ID 25-83 Agenda Date:1/30/2025 Agenda #:
2.-U.
REPORT TO THE CITY COUNCIL
FROM:SCOTT MOZIER, PE, Director
Public Works Department
BY:JILL M. GORMLEY, TE, Assistant Director
Public Works Department, Traffic & Engineering Services Division
JAIRO MATA, Public Works Manager
Public Works Department, Traffic and Land Planning Section
SUBJECT
RESOLUTION - Approving the Final Map of Tract No. 6410, and accepting dedicated public uses
offered therein except for dedications offered subject to City acceptance of developer installed
required improvements - located near the northeast corner of South Peach Avenue and East Church
Avenue. (Council District 5)
RECOMMENDATION
Staff recommends the City Council adopt a resolution approving the Final Map of Tract No. 6410 and
accepting the dedicated public uses offered therein, and to authorize the Public Works Director or his
designee to execute the subdivision agreement on behalf of the City.
EXECUTIVE SUMMARY
D.R. Horton CA3, Inc., the Owner, has filed for approval of the Final Map of Tract No. 6410, a 70-lot
single-family residential subdivision near the northeast corner of South Peach Avenue and East
Church Avenue on 12.79 acres.
BACKGROUND
The Fresno City Planning Commission on July 6, 2022 approved Vesting Tentative Map No. 6410
(Tentative Map) for a 70-lot single-family residential subdivision 12.79 acres (see attached map).
The Tentative Map was approved consistent with the Fresno General Plan to comply with the
provisions of the Subdivision Map Act. Tract No. 6410 is the first and only phase.
The Final Map is technically correct and conforms to the approved Tentative Map, the Subdivision
Map Act and the Fresno Municipal Code. The provisions of Section 66474.1 of the Subdivision
Map Act require a final map that is in substantial compliance with the approved tentative map to be
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approved by the City Council.
The Subdivider has satisfied all other conditions of approval by executing the Subdivision Agreement
for Tract No.6410,submitted securities in the total amount of $5,309,000 to guarantee the
completion and acceptance of the public improvements and $2,654,500 for a payment security,and
has paid the miscellaneous and development impact fees due as a condition of approval for the Final
Map in the amount of $187,501.66.Covenants have been executed to defer eligible development
impact fees totaling $1,442,347.22 to the time of final occupancy of each unit,relinquishing access
rights for certain lots,and for the maintenance of landscape improvements for certain lots covenant.
The City Attorney’s Office has approved all documents as to form and the Risk Management Division
has approved all security bonds and insurance certificates.
MAINTENANCE DISTRICT:A condition of approval of the Tentative Map is to maintain the concrete
curbs and gutters,valley gutters,sidewalks and curb ramps,landscaping,street name signage,local
street paving,hardscaping,park amenities,trail paving,trail lighting,and street lighting associated
with the Final Map in accordance with the adopted standards of the City.The Subdivider has
satisfied the maintenance requirement by annexing the subdivision into the City’s Community
Facilities District No. 11 on August 15, 2024.
ENVIRONMENTAL FINDINGS
Pursuant to CEQA Guidelines Section 15268(b)(3), approval of final subdivision maps is a ministerial
action and is exempt from the requirements of CEQA.
LOCAL PREFERENCE
Local preference was not considered because this resolution does not include a bid or award of a
construction or services contract.
FISCAL IMPACT
The Final Map is located in Council District 5.There will be no impact to the City’s General Fund.
Approval by the City Council will result in timely deliverance of the review and processing of the Final
Map as is reasonably expected by the Subdivider.Prudent financial management is demonstrated
by the expeditious completion of this Final Map inasmuch as the Subdivider has paid the City a fee
for the processing of this Final Map and that fee is,in turn,funding the respective operations of the
Public Works Department.
Attachments:
Resolution Approving the Final Map of Tract No. 6410
Final Map of Tract No. 6410
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City of Fresno
Staff Report
2600 Fresno Street
Fresno, CA 93721
www.fresno.gov
File #:ID 25-96 Agenda Date:1/30/2025 Agenda #:
2.-V.
REPORT TO THE CITY COUNCIL
FROM:SCOTT L. MOZIER, PE, Director
Public Works Department
BY:JILL M. GORMLEY, TE, Assistant Director
Public Works Department, Traffic & Engineering Services Division
ADRIAN GONZALEZ, Supervising Engineering Technician
Public Works Department, Land Planning & Subdivision Inspection Section
SUBJECT
RESOLUTION - Of Intention to Annex the Territory Known as Assessor’s Parcel Number 310-250-13
as Annexation Number 65 to the City of Fresno Community Facilities District Number 9 and to
Authorize the Levy of Special Taxes; and setting the Public Hearing for Thursday, March 13, 2025, at
9:15 am. (East side of North Armstrong Avenue and East Harvard Avenue) (Council District 7)
RECOMMENDATION
Adopt Resolution of Intention to Annex the Territory Known as APN 310-250-13 as Annexation No. 65
to the City of Fresno Community Facilities District No. 9 (CFD No. 9) and to Authorize the Levy of
Special Taxes.
EXECUTIVE SUMMARY
The landowner, Armstrong LLC, has petitioned the City of Fresno (City) to have APN 310-250-13
annexed to CFD No. 9 to provide funding for the Services (as hereinafter defined) pertaining to
certain above ground public improvements associated with this multi-family development. The cost
for these Services for the public improvements totals $343.00 annually for Fiscal Year 2024-2025.
Annexation No. 65 is located entirely within City limits. The Resolution of Intention begins the
process, sets the required public hearing for Thursday, March 13, 2025, at 9:15 am, and defines the
steps required to complete the annexation. (Reference attached Location Map.)
BACKGROUND
New commercial, industrial, and multi-family subdivisions and parcel maps have different needs and
standards than those of a standard single-family residential subdivision. Commercial, industrial and
multi-family subdivisions are traditionally self-maintained with different proprietary requirements for
landscaping, signage, and general designs. CFD No. 9 is designed to accommodate these
requirements by providing funding for services for certain required public improvements along the
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requirements by providing funding for services for certain required public improvements along the
perimeters of these developments.On December 16,2008,the Council of the City of Fresno
adopted Council Resolution No.2008-351,forming CFD No.9 to provide funding for the Services for
certain public improvements located within and adjacent to public streets on the perimeter of
commercial,industrial,and multi-family subdivisions as described and permitted pursuant the Goals
and Policies for CFD No.9 and the City of Fresno Special Tax Financing Law,Chapter 8,Division 1,
Article 3 of the Fresno Municipal Code (City Law)and the Mello-Roos Community Facilities Act of
1982 (Chapter 2.5,commencing with Section 53311,of Part 1,Division 2,Title 5 of the California
Government Code).
The landowner,whose ownership is comprised of the RC Gray Family Limited Partnership (Bruce M.
Brown and Bruce L.Tibbett,Co-Trustees)and the Matson 2009 Revocable Trust (Michael K.Matson,
Trustee and Irene D.Matson,Trustee),has petitioned the City to have APN 310-250-13 annexed to
CFD No.9 to provide funding for the operation and reserves for maintenance (Services)pertaining to
certain above ground public improvements located within City street easements.These
improvements include concrete curbs and gutters,valley gutters,sidewalks and curb ramps,and
street lighting as associated with this development. (Reference attached Location Map.)
APN 310-250-13 is located entirely within City limits.
The attached Resolution of Intention initiates the annexation process,sets the public hearing for
Thursday,March 13,2025,at 9:15 am,sets the Maximum Special Tax at a total of $343.00 to be
apportioned proportionately for each assessor’s parcel within Annexation No.65 annually for fiscal
year 2024-2025,and sets the annual adjustment of the Special Tax to be adjusted upward annually
by 2%or by the rise of the Construction Cost Index (CCI),if it exceeds 2%for the San Francisco
Region.
Annexations to existing community facilities districts are permitted under City Law.The legislative
body must follow certain prescribed procedures as outlined below:
§Adoption of a Resolution of Intention to Annex to CFD No. 9
§Required 7-day minimum Notice of Public Hearing
§Public hearing on Annexation and Levy of Special Tax
§Call a Special Mailed-Ballot Election on the proposed Special Tax
§Declare the Results of the Election
§Formal Adoption of Special Tax Levy (if election passes)
The attached Resolution has been approved as to form by the City Attorney’s Office.
ENVIRONMENTAL FINDINGS
Pursuant to California Environmental Quality Act (CEQA)Guidelines Section 15378 this action does
not qualify as a “project” and is therefore exempt from CEQA requirements.
LOCAL PREFERENCE
Local preference was not considered since this item does not include a bid or award of a construction
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or services contract.
FISCAL IMPACT
No City funds will be involved.All costs will be borne by the landowner as set forth in Exhibit D of the
Resolution of Intention attached herein.
Attachments:
Location Map
Features Map
Resolution of Intention
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BARSTOW GARFIELDBRYANPOLKBLYTHEVALENTINEVAN NESSFRUITSIERRA
ALLUVIAL
GETTYSBURG
DAKOTA
CLINTON
OLIVE
NIELSON
KEARNEY
ANNADALE
INTERNATIONAL
PERRIN
TEAGUE
ALLUVIALMAROAFRESNOMILLBROOKMAPLEWILLOW
MINNEWAWASUNNYSIDEARMSTRONGMAPLEORANGECHERRYFIGCHURCH
BUTLER
TULARE
LOCANDAKOTA
CLINTON
OLIVE
FRUITHUGHESVALENTINEBLYTHEPOLKBRYANLAND PLANNING & SUBDIVISION INSPECTION SECTION
N
ASSESSOR'S PARCEL NO. 310-250-13
DISTRICT 7
ANNEXATION NO. 65
COMMUNITY FACILITIES DISTRICT NO. 9
NOPARKINGNOPARKINGNOPARKINGNOPARKINGNOPARKINGN ARMSTRONG AVE
ASSESSOR'S PARCEL NO. 310-250-13
LANDSCAPE AND IRRIGATION WITHIN THE
PUBLIC RIGHT-OF-WAY TO BE PRIVATELY
MAINTAINED BY PROPERTY OWNER
LAND PLANNING & SUBDIVISION INSPECTION SECTION
FEATURES TO BE ADDED BY ANNEXATION NO. 65
COMMUNITY FACILITIES DISTRICT NO. 9
N
STREETLIGHTS:
CONCRETE IMPROVEMENTS:
LANDSCAPE AND IRRIGATION:
TOTAL = 1 EACH
SIDEWALKS & CURB RAMPS = 1,490 SF
VALLEY GUTTER = 644 SF
CURB & GUTTER = 213 LF
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WHEREAS, the landowner of the territory known as Assessor’s Parcel Number
310-250-13 has formally petitioned the City to annex the territory known as Assessor’s
Parcel Number 310-250-13 to CFD No. 9, and the area proposed for annexation to CFD
No. 9 is attached hereto as Exhibit B and incorporated herein by this reference; and
WHEREAS, the types of Services provided in the existing CFD No. 9 (Services)
are specified in the document attached hereto as Exhibit C, Page C-1 and incorporated
herein by this reference; and
WHEREAS, the types of Services to be provided to Annexation No. 65 are
specified in the document attached hereto as Exhibit C, page C-2, and incorporated
herein by this reference; and
WHEREAS, CFD No. 9 and Annexation No. 65 will share costs proportionately
for Services provided by the City; and
WHEREAS, Assessor’s Parcel Number 310-250-13, Annexation No. 65 is
located entirely within City limits; and
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Fresno as
follows:
1. Recitals. The forgoing recitals are true and correct.
2. Proposed Annexation No. 65 Boundaries. The proposed boundaries of
Annexation No. 65 are as shown on the map (attached as Exhibit B) on file in the Office
of the City Clerk of the City of Fresno (City Clerk). The boundaries, shown in
Annexation Map No. 65, for the territory proposed to be annexed, are preliminarily
approved. The City Clerk is directed to record Annexation Map No. 65, or cause it to be
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recorded, in the Office of the Recorder, Fresno County, California within ten days a fter
the adoption date of this resolution.
3. Services. The Services proposed to be financed in Annexation No. 65
are listed on page C-2 of Exhibit C, which is attached to and made part of this
resolution.
4. Special Taxes. Except to the extent that funds are otherwise available to
CFD No. 9 to pay for the Services in Annexation No. 65, a special tax sufficient to pay
the costs (Special Tax) thereof, secured by recording a continuing lien against all
nonexempt real property in Annexation No. 65, will be levied annually within Annexation
No. 65, and collected in the same manner as ordinary ad valorem property taxes, or in
any other manner as this Council or its designee shall determine, including direct billing
of the affected property owners. The proposed Rate and Method of Apportionment of
the Special Tax among the real property parcels within Annexation No. 65, in sufficient
detail for each landowner within Annexation No. 65 to estimate the maximum amount
each owner will have to pay, are described in Exhibit D, attached and incorporated
herein by reference.
5. District Annexation Report. The Director of Public Works Department,
as the officer having charge and control of the services in and for CFD No. 9, or his
designee, is directed to study the proposed Services and to make, or cause to be made,
and filed with the City Clerk a report of the study for Annexation No. 65 in writing
(District Report) presenting the following:
a. A description of the Services required to adequately meet the
needs of CFD No. 9, Annexation No. 65.
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b. An estimate of the fair and reasonable cost of the Services
including the cost of acquiring land, rights-of-way and easements, costs of any
physical services required in conjunction therewith, and incidental expenses in
connection therewith.
c. Describe any plan for Services that will be provided in common with
the existing district and/or any territory that may be annexed.
d. If the Special Tax levied within the territory proposed to be annexed
is higher or lower than the existing CFD No. 9, identify the extent and reasons
why the costs to provide Services in that territory are higher or lower than those
provided in the existing CFD No. 9. Specify any alteration in the Special Tax rate
levied within the existing community facilities district because of the proposed
annexation.
e. The District Report shall be made a part of the record of the public
hearing specified below.
6. Single Ballot. The propositions to set the appropriations limit and to
approve the levy of the Special Tax shall be combined into a single ballot and submitted
to the voters pursuant to City Law.
7. Annexation Hearing. Thursday, March 13, 2025, at 9:15 a.m., is fixed as
the date and time, in the City Council Chambers, 2600 Fresno Street, Fresno,
California, that this Council, the legislative body for CFD No. 9 , will conduct a public
hearing on the annexation of Assessor’s Parcel Number 310-250-13 and will consider
and finally determine whether the public interest, convenience and necessity require the
annexation and the levy of the Special Tax.
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8. Public Notice. The City Clerk is directed to cause notice of the public
hearing to be given by publication once in a newspaper of general circulation published
in the area of CFD No. 9. The publication shall be complete at least seven days before
the hearing date set herein. The notice shall be in the form specified by Sections
53339.4 and 53322 of Chapter 2.5 of the California Government Code
9. This resolution shall be effective upon final approval.
Attachments:
Exhibit A: Original Boundaries of CFD No. 9
Exhibit B: Annexation Map No. 65
Exhibit C: Description of Services
Exhibit D: Rate and Method of Apportionment of Special Tax
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* * * * * * * * * * * * * *
STATE OF CALIFORNIA )
COUNTY OF FRESNO ) ss.
CITY OF FRESNO )
I, TODD STERMER, City Clerk of the City of Fresno, certify that the foregoing
resolution was adopted by the Council of the City of Fresno, at a regular meeting held
on the day of 2025.
AYES :
NOES :
ABSENT :
ABSTAIN :
TODD STERMER, CMC
City Clerk
BY:
Date
Deputy
APPROVED AS TO FORM:
ANDREW JANZ
City Attorney
BY:
Brent Richardson Date
Deputy City Attorney
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CITY OF FRESNOMAINTENANCECFD9 ANNEXATION
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City Boundary Limits
µ
Exhibit A
Date: 3/13/2015
E CLINTON AVE
E HARVARD AVE
N ARMSTRONG AVEE BROWN AVE
E MILLIE DR
E WATSON DR N ZINNIA DRASSESSOR'S
PARCEL NUMBER
310-250-13
CITY OF FRESNO - Public Works Department
ANNEXATION MAP NO. 65 OF
COMMUNITY FACILITIES DISTRICT NO. 9
OF THE CITY OF FRESNO, FRESNO
COUNTY, CALIFORNIA
CFD9 65 A1
1-P-1502
REFERENCE: BOUNDARY MAP OF CITY OF FRESNO COMMUNITY FACILITIES
DISTRICT NO. 9, RECORDED DECEMBER 4, 2008 AT BOOK 42, PAGE 100 OF
ASSESSMENT AND COMMUNITY FACILITIES DISTRICTS IN THE OFFICE OF THE
RECORDER IN THE COUNTY OF FRESNO, STATE OF CALIFORNIA
DOC.
FILED IN THE OFFICE OF THE CITY CLERK OF THE CITY OF FRESNO THIS DAY
OF , 2025.
ATTEST:
TODD STERMER, CMC
CITY CLERK OF THE CITY OF FRESNO
BY:
DEPUTY
I HEREBY CERTIFY THAT THE ANNEXATION MAP NO. 65 OF THE COMMUNITY
FACILITIES DISTRICT NO. 9, CITY OF FRESNO, COUNTY OF FRESNO, STATE OF
CALIFORNIA WAS ADOPTED BY THE COUNCIL OF THE CITY OF FRESNO BY
RESOLUTION NO. 2025- ON , 2025.
ATTEST:
TODD STERMER, CMC
CITY CLERK OF THE CITY OF FRESNO
BY:
DEPUTY
THIS ANNEXATION MAP NO. 65 OF THE CITY OF FRESNO COMMUNITY
FACILITIES DISTRICT NO. 9, WAS FILED THIS DAY OF , 2025
AT THE HOUR OF O'CLOCK M AT BOOK 47, PAGE OF MAPS OF
ASSESSMENT AND COMMUNITY FACILITIES DISTRICTS IN THE OFFICE OF THE
COUNTY RECORDER IN THE COUNTY OF FRESNO, STATE OF CALIFORNIA
PAUL DICTOS, C.P.A.
COUNTY RECORDER OF THE COUNTY OF FRESNO
BY:
NTERRITORY TO BE ANNEXED
TO THE CITY CFD NO. 9
BOUNDARY LINE OF NEW
TERRITORY
NOTE: FOR PARCEL DIMENSIONS, SEE ASSESSOR'S MAP BOOK PAGES
EXEMPT FROM SB2 FEES PER GOVERNMENT CODE SECTION 27388.1(a)(2)(D)
EXHIBIT B
EXHIBIT C
C-1
City of Fresno
Community Facilities District No. 9
Formation
Description of Services currently financed by Community Facilities District No. 9
The services and operations (Services) that are to be financed by Community Facilities
District No. 9 (CFD No. 9) are described below and are permitted by City of Fresno
Special Tax Financing Law (Chapter 8, Division 1, Article 3 of the Fresno Municipal
Code) and the Mello-Roos Community Facilities Act of 1982 (Chapter 2.5 commencing
with Section 53311, of Part 1, Division 2, Title 5 of the California Government Code.)
I. Services may include all costs attributable to maintaining, servicing, cleaning,
repairing and/or replacing all landscaping facilities (including reserves), including
stamped concrete paving in medians and landscaped areas in public street rights -
of-way, public trails, and, in instances where a required sound wall abuts a local
City street and public landscape easements are officially dedicated for public use.
General maintenance will include, without limitation, mowing, edging, fertilizing,
seeding, aerating, and watering grass areas; repairing and replacing irrigation
systems as necessary; staking, pruning, replacing and spraying of trees and
shrubs; repairing and replacing paths, walkways and trails; repairing and replacing
stamped concrete paving and removing litter, debris, and garbage.
II. Services may include all costs attributable to cleaning, maintaining, servicing,
repairing and/or replacing all local ground level street infrastructures (including
reserves) within local street rights-of-way. Such facilities may include, without
limitation, street paving, curbs and gutters, sidewalks, street lighting, hydrants,
inlets, street trees, street signage and street furniture.
Maintenance costs will also include a proportionate share of all other expenses that the
City may incur in administering the CFD No. 9.
All Services shall be provided by the City of Fresno, with its own forces or by contract
with third parties, or any combination thereof, to be determined entirely by the City of
Fresno.
Nothing in this exhibit or any other exhibit or provision of this Resolution shall be
construed as committing the City or CFD No. 9 to provide all of the authorized Services
or to provide for the payment of or reimbursement for all of the authorized incidental
expenses. The provision of Services and/or payment or reimbursement of incidental
expenses shall be subject to the continued existence of CFD No. 9 and the availability of
sufficient proceeds of special taxes within the District.
EXHIBIT C
C-2
City of Fresno
Community Facilities District No. 9
Annexation No. 65
Description of Services to be Financed by
Community Facilities District No. 9 For
Assessor’s Parcel No. 310-250-13
The services and operations described below (Services) to be financed by Community
Facilities District No. 9 (CFD No. 9) for Assessor’s Parcel No. 310-250-13, Annexation
No. 65 are generally as described below.
Services shall include all costs attributable to cleaning, maintaining, servicing, repairing
and/or replacing all ground level infrastructure (including reserves for replacement) within
the public street rights-of-way associated with Assessor’s Parcel No. 310-250-13. Such
facilities include, without limitation, concrete curbs and gutters, valley gutters, curb ramps
and sidewalks, and street lighting as associated with this development.
Services shall include all costs attributable to street lighting services.
Maintenance costs will also include a proportionate share of all other expenses that the
City may incur in administering the CFD No. 9.
All Services shall be provided by the City of Fresno, with its own forces or by contract
with third parties, or any combination thereof, to be determined entirely by the City of
Fresno.
Nothing in this exhibit or any other exhibit or provision of this Resolution shall be
construed as committing the City or CFD No. 9 to provide all of the authorized Services
or to provide for the payment of or reimbursement for all of the authorized incidental
expenses. The provision of Services and/or payment or reimbursement of incidental
expenses shall be subject to the successful annexation of Annexation 65 to CFD No. 9
and the availability of sufficient proceeds of Special Taxes within CFD No. 9.
EXHIBIT D
D-1
City of Fresno
Community Facilities District No. 9
Annexation No. 65
Rate and Method of Apportionment of Special Tax
Cost Estimate
The estimate breaks down the costs of providing one year’s Service for FY 2024-2025.
ITEM DESCRIPTION ESTIMATED COST
1 Other Operational Costs $20.00
2 Reserve for Replacement $308.00
3 Incidental Expenses $15.00
Total $343.00
Subdivision or Development Appropriation Limit
Development Permit No.
Total Maximum
Special Tax for
Services
Appropriation Limit Landowner
P22-02376 $343.00 $500,000.00 Armstrong, LLC
Assessor’s Parcel Number 310-250-13
EXHIBIT D
D-2
City of Fresno
Community Facilities District No. 9
Annexation No. 65
Rate and Method of Apportionment of Special Tax
A special tax applicable to each assessor’s parcel in Community Facilities District No. 9
(CFD No. 9) shall be levied and collected according to the tax liability determined by the
City Council of the City of Fresno, through the application of the appropriate amount or
rate for taxable property, as described below. All of the property in CFD No. 9, unless
exempted by law or by the provisions of Section E below, shall be taxed for the
purposes, to the extent, and in the manner herein provided, including property
subsequently annexed to CFD No. 9 unless a separate Rate and Method of
Apportionment of Special Tax is adopted for the annexation area.
A. DEFINITIONS
The terms hereinafter set forth have the following meanings:
“Assessor’s Parcel” or “Parcel” means a lot or parcel shown on an assessor’s parcel
map with an assigned assessor’s parcel number.
“Assessor’s Parcel Map” means an official map of the County Assessor of the County
of Fresno designating parcels by assessor’s parcel number.
“City” means the City of Fresno.
“City Law” means the City of Fresno Special Tax Financing Law, Chapter 8, Division 1,
Article 3, of the Fresno Municipal Code.
“Commercial or Industrial Developments or Subdivisions” means developments or
subdivisions zoned for commercial or industrial uses.
“Council” means the City Council of the City of Fresno, acting as the legislative body of
CFD No. 9.
“Developable Lot” means a lot that is anticipated development of residential or non -
residential uses, and which is not an outlot, remainder parcel or other parcel which is
not intended to be developed or which must be further subdivided before being
developed.
“Development” means any assessor’s parcel within the City of Fresno which is being
developed for Industrial, Commercial, or Multi-Family purposes and requires a Building
Permit.
EXHIBIT D
D-3
“Excluded Parcels” means those assessor’s parcels identified as ineligible for
inclusion in CFD No. 9 as shown in “Attachment 1” of this Rate and Method of
Apportionment of Special Tax.
“Final Map” means a final map, or portion thereof, approved by the Council pursuant to
the Subdivision Map Act (California Government Code Section 66410 et seq.) that
creates individual developable lots for which building permits may be issued. The term
“Final Map” shall not include any assessor’s parcel map or subdivision map or portion
thereof, that does not create individual developable lots for which a building permit may
be issued, including assessor’s parcels that are designated as remainder parcels.
“Fiscal Year” means the period starting April 1 and ending on the following March 31.
“Maximum Special Tax” means the maximum special tax, determined in accordance
with Section C, which can be levied in any Fiscal Year.
“Public Property” means any property within the boundaries of CFD No. 9 that is
owned by the federal government, State of California or other local governments or
public agencies.
“Reserve for Replacement” means a reasonable reserve pursuant to Fresno
Municipal Code 8-1-303(e) (4), as a Service cost or expense and not as payment for
public facilities under Government Code Section 53321(d).
“Residential Development or Subdivision” means developments or subdivisions
zoned for residential multi-family uses.
“Residential Unit” means a multi-family residential dwelling unit and shall include
condominiums, town homes, duplex, triplex and fourplex units, and individual apartment
units in a multi-family subdivision. For purposes of the levy of special taxes pursuant to
Section B below, “Residential Units” shall include dwelling units already built on taxable
property in CFD No. 9, as well as dwelling units planned, but not yet built, when the
special tax is levied each fiscal year.
“Shared Services” means the costs of services are paid equally by the property
owners of two or more subdivisions.
“Special Tax” means any special tax to be levied each fiscal year on assessor’s
parcels of taxable property to fund the Special Tax Requirement as defined below.
“Special Tax Requirement” means the amount necessary in any fiscal year to (i) pay
authorized maintenance and improvement expenses, (ii) pay administrative expenses of
CFD No. 9, and (iii) cure any delinquencies in the payment of special taxes levied in
prior fiscal years or (based on delinquencies in the payment of special taxes which have
already taken place) are expected to occur in the fiscal year in which the tax will be
collected.
EXHIBIT D
D-4
“Subdivision” means the division, by any subdivider, of any unit or units of improved or
unimproved land, or any portion thereof, shown on the latest equalized county
assessment roll as a unit or as contiguous units, for the purpose of sale, lease, or
financing whether immediate or future. Property shall be considered as contiguous
units, even if it is separated by roads, streets, utility easement or railroad rights -of-way.
“Subdivision” includes a condominium project, as defined in Section 4125 of the Civil
Code, a community apartment project, as defined in Section 4105 of the Civil Code.
“Taxable Property” means all of the assessor’s parcels within the boundaries of CFD
No. 9 which are not exempt from the special tax pursuant to law or Section E below.
B. CALCULATIONS
COMMERCIAL AND INDUSTRIAL DEVELOPMENTS OR SUBDIVISIONS
On or about April 1 of each fiscal year, the City of Fresno (City) or its designee shall
determine how many square feet of taxable area are in each assessor’s parcels within
each commercial or industrial development or subdivision of CFD No. 9.
For commercial or industrial developments or subdivisions, the area to be taxed is the
total area within each assessor’s parcels of the subdivision or development not
designated as public right-of-way and is not to exceed the Maximum Special Tax
identified for the development or subdivision in Section C, Table 1 below.
RESIDENTIAL SUBDIVISIONS
On or about April 1 of each fiscal year, the City or its designee shall determine how
many residential units are built, or allowed to be built, on assessor’s parcels within CFD
No. 9. For parcels of undeveloped property zoned for development of multi-family units,
the number of residential units shall be determined by referencing the condominium
plan, apartment plan, site plan or other development plan, or by assigning the maximum
allowable units permitted based on the underlying zoning for the parcel. Once a multi-
family building or buildings have been built on an assessor’s parcel, the City or its
designee shall determine the actual number of residential units contained within the
building or buildings, and the special tax levied against the parcel in the next fiscal year
shall be calculated by dividing the Special Tax Requirement by the actual number of
residential units not to exceed the Maximum Special Tax per residential unit identified
for the subdivision in Section C, Table 1 below.
C. MAXIMUM SPECIAL TAX
The Maximum Special Tax (MST) applicable to each assessor’s parcel in CFD No. 9
shall be specific to each development, subdivision, subdivisions, or portion thereof
within CFD No. 9. When additional property is annexed into CFD No. 9, the rate and
method adopted for the annexed property shall reflect the MST for the development,
subdivision, subdivisions, or respective portion thereof then annexed.
EXHIBIT D
D-5
The MST applicable to each development, subdivision, subdivisions, or portion thereof
in CFD No. 9 shall be the rate that is created at the time of CFD No. 9 annexation
expressly for the individual development, subdivision, subdivisions, or portion thereof
being annexed to CFD No. 9 at that time. Beginning in January of each year, the MST
will be adjusted upward annually by 2% or by the rise of the Construction Cost Index
(CCI), if it exceeds 2%, for the San Francisco Region for the prior 12 -month period
(December through December) as published in the Engineering News Record, or
published in a comparable index if the Engineering News Record is discontinued or
otherwise not available. Each annual adjustment of the MST shall become effective on
the subsequent July 1.
Subject to the maximum limit set by the MST, the Special Tax for the commercial,
industrial or multi-family development or subdivision assessor’s parcels is calculated by
spreading the Special Tax Requirement to the total taxable square footage of the
development or subdivision and then apportioned proportionately by area to the
individual assessor’s parcels within the development or subdivision or by the number of
residential units as applicable.
The total Maximum Special Tax for Fiscal Year 2024-2025 for Annexation No. 65 of
CFD No. 9 is identified in Table 1 below:
Table 1
Maximum Special Tax
(Fiscal Year 2024-2025)
Multi-Family Development Number* Total Maximum Special Tax
P22-02376 $343.00
Assessor’s Parcel Number 310-250-13
*A Special Tax shall be levied on all assessor’s parcels within an identified development
or subdivision except excluded parcels as identified in Attachment 1.
D. METHOD OF LEVY AND COLLECTION OF THE SPECIAL TAX
Commencing with Fiscal Year 2024-2025, the Special Tax shall be levied on all parcels
of taxable property as follows:
Step 1: Determine the Special Tax Requirement (as defined in Section A
above) for the fiscal year in which the special tax will be collected;
Step 2: Calculate the total special tax revenues that could be collected from
taxable property within CFD No. 9 based on applying the Maximum
EXHIBIT D
D-6
Special Tax rates determined pursuant to Section C above to each
parcel of taxable property in CFD No. 9;
If the amount determined in Step 1 is greater than or equal to the
amount calculated in Step 2, levy the Maximum Special Tax set forth
in Table 1 above on all parcels of taxable property in CFD No. 9;
If the amount determined in Step 1 is less than the amount calculated
in Step 2, levy the Special Tax proportionately against all parcels of
taxable property up to 100% of the Maximum Special Tax for each
subdivision as identified in Table 1, until the amount of the Special
Tax levy equals the Special Tax Requirement for that fiscal year.
The Special Tax for CFD No. 9 shall be collected in the same manner and at the same
time as ordinary ad valorem property taxes, provided, however, that CFD No. 9 may
(under the authority of Government Code 53340), in any particular case, bill the taxes
directly to the property owner off of the County of Fresno tax roll, and the Special Taxes
will be equally subject to penalties and foreclosure if delinquent.
E. EXEMPTIONS
Notwithstanding any other provision of this Rate and Method of Apportionment of
Special Tax, no Special Tax shall be levied on parcels that have been conveyed to a
public agency, except as otherwise provided in City Law, and properties receiving a
welfare exemption under subdivision (g) of Section 214 of the Revenue and Taxation
Code. In addition, no Special Tax shall be levied on excluded parcels or parcels that
are determined not to be developable lots.
EXHIBIT D
D-7
ATTACHMENT 1
City of Fresno
Community Facilities District No. 9
Annexation 65
Excluded Parcels
THERE ARE NO EXCLUDED PARCELS
WITHIN THE BOUNDARIES OF ANNEXATION NO. 65
City of Fresno
Staff Report
2600 Fresno Street
Fresno, CA 93721
www.fresno.gov
File #:ID 25-97 Agenda Date:1/30/2025 Agenda #:
2.-W.
REPORT TO THE CITY COUNCIL
FROM:SCOTT L. MOZIER, PE, Director
Public Works Department
BY:JILL M. GORMLEY, TE, Assistant Director
Public Works Department, Traffic & Engineering Services Division
ADRIAN GONZALEZ, Supervising Engineering Technician
Public Works Department, Land Planning Section
SUBJECT
RESOLUTION - Of Intention to Annex the Territory Known as Assessor’s Parcel Number 506-130-
04S as Annexation Number 64 to the City of Fresno Community Facilities District Number 9 and to
Authorize the Levy of Special Taxes; and setting the Public Hearing for Thursday, March 13, 2025, at
9:20 am (Southwest corner of West Sierra Avenue and North Polk Avenue). (Council District 2)
RECOMMENDATION
Adopt Resolution of Intention to Annex the Territory Known as APN 506-130-04S as Annexation No.
64 to the City of Fresno Community Facilities District No. 9 (CFD No. 9) and to Authorize the Levy of
Special Taxes.
EXECUTIVE SUMMARY
The landowner, Valley Teen Ranch, has petitioned the City of Fresno (City) to have APN 506-130-
04S annexed to CFD No. 9 to provide funding for the Services (as hereinafter defined) pertaining to
certain above ground public improvements associated with this Multi-Family development. The cost
for these Services for the public improvements totals $1,343.00 annually for Fiscal Year 2024-2025.
Annexation No. 64 is located entirely within City limits. The Resolution of Intention begins the
process, sets the required public hearing for Thursday, March 13, 2025, at 9:20 am, and defines the
steps required to complete the annexation. (Reference attached Location Map.)
BACKGROUND
New commercial, industrial, and multi-family subdivisions and parcel maps have different needs and
standards than those of a standard single-family residential subdivision. Commercial, industrial and
multi-family subdivisions are traditionally self-maintained with different proprietary requirements for
landscaping, signage, and general designs. CFD No. 9 is designed to accommodate these
requirements by providing funding for services for certain required public improvements along the
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requirements by providing funding for services for certain required public improvements along the
perimeters of these developments.On December 16,2008,the Council of the City of Fresno
adopted Council Resolution No.2008-351,forming CFD No.9 to provide funding for the Services for
certain public improvements located within and adjacent to public streets on the perimeter of
commercial,industrial,and multi-family subdivisions as described and permitted pursuant the Goals
and Policies for CFD No.9 and the City of Fresno Special Tax Financing Law,Chapter 8,Division 1,
Article 3 of the Fresno Municipal Code (City Law)and the Mello-Roos Community Facilities Act of
1982 (Chapter 2.5,commencing with Section 53311,of Part 1,Division 2,Title 5 of the California
Government Code).
The landowner,Valley Teen Ranch,whose ownership is comprised of Cory Bell,Donna Callahan,
Andrea Evans,Miriam Delfin,and Mike Zachary,has petitioned the City to have APN 506-130-04S
annexed to CFD No.9 to provide funding for the operation and reserves for maintenance (Services)
pertaining to certain above ground public improvements located within City street easements.These
improvements include concrete curbs and gutters,sidewalks and curb ramps;and street lighting as
associated with this development. (Reference attached Location Map.)
APN 506-130-04S is located entirely within City limits.
The attached Resolution of Intention initiates the annexation process,sets the public hearing for
Thursday,March 13,2025,at 9:20 am,sets the Maximum Special Tax at a total of $1,343.00 to be
apportioned proportionately for each assessor’s parcel within Annexation No.64 annually for fiscal
year 2024-2025,and sets the annual adjustment of the Special Tax to be adjusted upward annually
by 2%or by the rise of the Construction Cost Index (CCI),if it exceeds 2%for the San Francisco
Region.
Annexations to existing community facilities districts are permitted under City Law.The legislative
body must follow certain prescribed procedures as outlined below:
§Adoption of a Resolution of Intention to Annex to CFD No. 9
§Required 7-day minimum Notice of Public Hearing
§Public hearing on Annexation and Levy of Special Tax
§Call a Special Mailed-Ballot Election on the proposed Special Tax
§Declare the Results of the Election
§Formal Adoption of Special Tax Levy (if election passes)
The attached Resolution has been approved as to form by the City Attorney’s Office.
ENVIRONMENTAL FINDINGS
Pursuant to California Environmental Quality Act (CEQA)Guidelines Section 15378 this action does
not qualify as a “project” and is therefore exempt from CEQA requirements.
LOCAL PREFERENCE
Local preference was not considered since this item does not include a bid or award of a construction
or services contract.
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FISCAL IMPACT
No City funds will be involved.All costs will be borne by the landowner as set forth in Exhibit D of the
Resolution of Intention attached herein.
Attachments:
Location Map
Features Map
Resolution of Intention
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BARSTOW GARFIELDBRYANPOLKBLYTHEVALENTINEVAN NESSFRUITSIERRA
ALLUVIAL
GETTYSBURG
DAKOTA
CLINTON
OLIVE
NIELSON
KEARNEY
ANNADALE
INTERNATIONAL
PERRIN
TEAGUE
ALLUVIALMAROAFRESNOMILLBROOKMAPLEWILLOW
MINNEWAWASUNNYSIDEARMSTRONGMAPLEORANGECHERRYFIGCHURCH
BUTLER
TULARE
LOCANDAKOTA
CLINTON
OLIVE
FRUITHUGHESVALENTINEBLYTHEPOLKBRYANLAND PLANNING & SUBDIVISION INSPECTION SECTION
N
ASSESSOR'S PARCEL NO. 506-130-04S
DISTRICT 2
ANNEXATION NO. 64
COMMUNITY FACILITIES DISTRICT NO. 9
ASSESSOR'S PARCEL NO. 506-130-04S
LAND PLANNING & SUBDIVISION INSPECTION SECTION
FEATURES TO BE ADDED BY ANNEXATION NO. 64
COMMUNITY FACILITIES DISTRICT NO. 9
N
STREETLIGHTS: CONCRETE IMPROVEMENTS:LANDSCAPE AND IRRIGATION:
TOTAL = 5 EACH
SIDEWALKS & CURB RAMPS = 7,109 SF
CURB & GUTTER = 999 LF
LANDSCAPE AND IRRIGATION
WITHIN THE PUBLIC
RIGHT-OF-WAY TO BE
PRIVATELY MAINTAINED BY
PROPERTY OWNER
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WHEREAS, the landowner of the territory known as Assessor’s Parcel Number
506-130-04S has formally petitioned the City to annex the territory known as Assessor’s
Parcel Number 506-130-04S to CFD No. 9, and the area proposed for annexation to
CFD No. 9 is attached hereto as Exhibit B and incorporated herein by this reference;
and
WHEREAS, the types of Services provided in the existing CFD No. 9 (Services)
are specified in the document attached hereto as Exhibit C, Page C-1 and incorporated
herein by this reference; and
WHEREAS, the types of Services to be provided to Annexation No. 64 are
specified in the document attached hereto as Exhibit C, page C-2 and incorporated
herein by this reference; and
WHEREAS, CFD No. 9 and Annexation No. 64 will share costs proportionately
for Services provided by the City; and
WHEREAS, Assessor’s Parcel Number 506-130-04S, Annexation No. 64 is
located entirely within City limits; and
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Fresno as
follows:
1. Recitals. The forgoing recitals are true and correct.
2. Proposed Annexation No. 64 Boundaries. The proposed boundaries of
Annexation No. 64 are as shown on the map (attached as Exhibit B) on file in the Office
of the City Clerk of the City of Fresno (City Clerk). The boundaries, shown in
Annexation Map No. 64, for the territory proposed to be annexed, are preliminarily
approved. The City Clerk is directed to record Annexation Map No. 64, or cause it to be
3 of 6
recorded, in the Office of the Recorder, Fresno County, California within ten days a fter
the adoption date of this resolution.
3. Services. The Services proposed to be financed in Annexation No. 64
are listed on page C-2 of Exhibit C, which is attached to and made part of this
resolution.
4. Special Taxes. Except to the extent that funds are otherwise available to
CFD No. 9 to pay for the Services in Annexation No. 64, a special tax sufficient to pay
the costs (Special Tax) thereof, secured by recording a continuing lien against all
nonexempt real property in Annexation No. 64, will be levied annually within Annexation
No. 64, and collected in the same manner as ordinary ad valorem property taxes, or in
any other manner as this Council or its designee shall determine, including direct billing
of the affected property owners. The proposed Rate and Method of Apportionment of
the Special Tax among the real property parcels within Annexation No. 64, in sufficient
detail for each landowner within Annexation No. 64 to estimate the maximum amount
each owner will have to pay, are described in Exhibit D, attached and incorporated
herein by reference.
5. District Annexation Report. The Director of Public Works Department,
as the officer having charge and control of the services in and for CFD No. 9, or his
designee, is directed to study the proposed Services and to make, or cause to be made,
and filed with the City Clerk a report of the study for Annexation No. 64 in writing
(District Report) presenting the following:
a. A description of the Services required to adequately meet the
needs of CFD No. 9, Annexation No. 64.
4 of 6
b. An estimate of the fair and reasonable cost of the Services
including the cost of acquiring land, rights-of-way and easements, costs of any
physical services required in conjunction therewith, and incidental expenses in
connection therewith.
c. Describe any plan for Services that will be provided in common with
the existing district and/or any territory that may be annexed.
d. If the Special Tax levied within the territory proposed to be annexed
is higher or lower than the existing CFD No. 9, identify the extent and reasons
why the costs to provide Services in that territory are higher or lower than those
provided in the existing CFD No. 9. Specify any alteration in the Special Tax rate
levied within the existing community facilities district because of the proposed
annexation.
e. The District Report shall be made a part of the record of the public
hearing specified below.
6. Single Ballot. The propositions to set the appropriations limit and to
approve the levy of the Special Tax shall be combined into a single ballot and submitted
to the voters pursuant to City Law.
7. Annexation Hearing. Thursday, March 13, 2025, at 9:20 a.m., is fixed as
the date and time, in the City Council Chambers, 2600 Fresno Street, Fresno,
California, that this Council, the legislative body for CFD No. 9, will conduct a public
hearing on the annexation of Assessor’s Parcel Number 506-130-04S and will consider
and finally determine whether the public interest, convenience and necessity require the
annexation and the levy of the Special Tax.
5 of 6
8. Public Notice. The City Clerk is directed to cause notice of the public
hearing to be given by publication once in a newspaper of general circulation published
in the area of CFD No. 9. The publication shall be complete at least seven days before
the hearing date set herein. The notice shall be in the form specified by Sections
53339.4 and 53322 of Chapter 2.5 of the California Government Code
9. This resolution shall be effective upon final approval.
Attachments:
Exhibit A: Original Boundaries of CFD No. 9
Exhibit B: Annexation Map No. 64
Exhibit C: Description of Services
Exhibit D: Rate and Method of Apportionment of Special Tax
6 of 6
* * * * * * * * * * * * * *
STATE OF CALIFORNIA )
COUNTY OF FRESNO ) ss.
CITY OF FRESNO )
I, TODD STERMER, City Clerk of the City of Fresno, certify that the foregoing
resolution was adopted by the Council of the City of Fresno, at a regular meeting held
on the day of 2025.
AYES :
NOES :
ABSENT :
ABSTAIN :
TODD STERMER, CMC
City Clerk
BY:
Date
Deputy
APPROVED AS TO FORM:
ANDREW JANZ
City Attorney
BY:
Brent Richardson Date
Deputy City Attorney
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CITY OF FRESNOMAINTENANCECFD9 ANNEXATION
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µ
Exhibit A
Date: 3/13/2015
CITY OF FRESNO - Public Works DepartmentANNEXATION MAP NO. 64 OFCOMMUNITY FACILITIES DISTRICT NO. 9OF THE CITY OF FRESNO, FRESNOCOUNTY, CALIFORNIACFD9 64 A11-P-1501REFERENCE: BOUNDARY MAP OF CITY OF FRESNO COMMUNITY FACILITIESDISTRICT NO. 9, RECORDED DECEMBER 4, 2008 AT BOOK 42, PAGE 100 OFASSESSMENT AND COMMUNITY FACILITIES DISTRICTS IN THE OFFICE OF THERECORDER IN THE COUNTY OF FRESNO, STATE OF CALIFORNIADOC.FILED IN THE OFFICE OF THE CITY CLERK OF THE CITY OF FRESNO THIS DAYOF , 2025.ATTEST:TODD STERMER, CMCCITY CLERK OF THE CITY OF FRESNOBY: DEPUTYI HEREBY CERTIFY THAT THE ANNEXATION MAP NO. 64 OF THE COMMUNITYFACILITIES DISTRICT NO. 9, CITY OF FRESNO, COUNTY OF FRESNO, STATE OFCALIFORNIA WAS ADOPTED BY THE COUNCIL OF THE CITY OF FRESNO BYRESOLUTION NO. 2025- ON , 2025.ATTEST:TODD STERMER, CMCCITY CLERK OF THE CITY OF FRESNOBY: DEPUTYTHIS ANNEXATION MAP NO. 64 OF THE CITY OF FRESNO COMMUNITYFACILITIES DISTRICT NO. 9, WAS FILED THIS DAY OF , 2025AT THE HOUR OF O'CLOCK M AT BOOK 47, PAGE OF MAPS OFASSESSMENT AND COMMUNITY FACILITIES DISTRICTS IN THE OFFICE OF THECOUNTY RECORDER IN THE COUNTY OF FRESNO, STATE OF CALIFORNIAPAUL DICTOS, C.P.A.COUNTY RECORDER OF THE COUNTY OF FRESNOBY:NTERRITORY TO BE ANNEXEDTO THE CITY CFD NO. 9BOUNDARY LINE OF NEWTERRITORYNOTE: FOR PARCEL DIMENSIONS, SEE ASSESSOR'S MAP BOOK PAGESEXEMPT FROM SB2 FEES PER GOVERNMENT CODE SECTION 27388.1(a)(2)(D)EXHIBIT B
EXHIBIT C
C-1
City of Fresno
Community Facilities District No. 9
Formation
Description of Services currently financed by Community Facilities District No. 9
The services and operations (Services) that are to be financed by Community Facilities
District No. 9 (CFD No. 9) are described below and are permitted by City of Fresno
Special Tax Financing Law (Chapter 8, Division 1, Article 3 of the Fresno Municipal
Code) and the Mello-Roos Community Facilities Act of 1982 (Chapter 2.5 commencing
with Section 53311, of Part 1, Division 2, Title 5 of the California Government Code.)
I. Services may include all costs attributable to maintaining, servicing, cleaning,
repairing and/or replacing all landscaping facilities (including reserves), including
stamped concrete paving in medians and landscaped areas in public street rights -
of-way, public trails, and, in instances where a required sound wall abuts a local
City street and public landscape easements are officially dedicated for public use.
General maintenance will include, without limitation, mowing, edging, fertilizing,
seeding, aerating, and watering grass areas; repairing and replacing irrigation
systems as necessary; staking, pruning, replacing and spraying of trees and
shrubs; repairing and replacing paths, walkways and trails; repairing and replacing
stamped concrete paving and removing litter, debris, and garbage.
II. Services may include all costs attributable to cleaning, maintaining, servicing,
repairing and/or replacing all local ground level street infrastructures (including
reserves) within local street rights-of-way. Such facilities may include, without
limitation, street paving, curbs and gutters, sidewalks, street lighting, hydrants,
inlets, street trees, street signage and street furniture.
Maintenance costs will also include a proportionate share of all other expenses that the
City may incur in administering the CFD No. 9.
All Services shall be provided by the City of Fresno, with its own forces or by contract
with third parties, or any combination thereof, to be determined entirely by the City of
Fresno.
Nothing in this exhibit or any other exhibit or provision of this Resolution shall be
construed as committing the City or CFD No. 9 to provide all of the authorized Services
or to provide for the payment of or reimbursement for all of the authorized incidental
expenses. The provision of Services and/or payment or reimbursement of incidental
expenses shall be subject to the continued existence of CFD No. 9 and the availability of
sufficient proceeds of special taxes within the District.
EXHIBIT C
C-2
City of Fresno
Community Facilities District No. 9
Annexation No. 64
Description of Services to be Financed by
Community Facilities District No. 9 For
Assessor’s Parcel No. 506-130-04S
The services and operations described below (Services) to be financed by Community
Facilities District No. 9 (CFD No. 9) for Assessor’s Parcel No. 506-130-04S, Annexation
No. 64 are generally as described below.
Services shall include all costs attributable to cleaning, maintaining, servicing, repairing
and/or replacing all ground level infrastructure (including reserves for replacement) within
the public street rights-of-way associated with Assessor’s Parcel No. 506-130-04S. Such
facilities include, without limitation, concrete curbs and gutters, curb ramps and
sidewalks, and street lighting associated with this development.
Services shall include all costs attributable to street lighting services.
Maintenance costs will also include a proportionate share of all other expenses that the
City may incur in administering the CFD No. 9.
All Services shall be provided by the City of Fresno, with its own forces or by contract
with third parties, or any combination thereof, to be determined entirely by the City of
Fresno.
Nothing in this exhibit or any other exhibit or provision of this Resolution shall be
construed as committing the City or CFD No. 9 to provide all of the authorized Services
or to provide for the payment of or reimbursement for all of the authorized incidental
expenses. The provision of Services and/or payment or reimbursement of incidental
expenses shall be subject to the successful annexation of Annexation No. 64 to CFD No.
9 and the availability of sufficient proceeds of Special Taxes within CFD No. 9.
EXHIBIT D
D-1
City of Fresno
Community Facilities District No. 9
Annexation No. 64
Rate and Method of Apportionment of Special Tax
Cost Estimate
The estimate breaks down the costs of providing one year’s Service for FY 2024-2025.
ITEM DESCRIPTION ESTIMATED COST
1 Other Operational Costs $140.00
2 Reserve for Replacement $1,188.00
3 Incidental Expenses $15.00
Total $1,343.00
Subdivision or Development Appropriation Limit
Development Permit No.
Total Maximum
Special Tax for
Services
Appropriation
Limit Landowner
P23-01302 $1,343.00 $500,000.00 Valley Teen Ranch
Assessor’s Parcel Number 506-130-04S
EXHIBIT D
D-2
City of Fresno
Community Facilities District No. 9
Annexation No. 64
Rate and Method of Apportionment of Special Tax
A special tax applicable to each assessor’s parcel in Community Facilities District No. 9
(CFD No. 9) shall be levied and collected according to the tax liability determined by the
City Council of the City of Fresno, through the application of the appropriate amount or
rate for taxable property, as described below. All of the property in CFD No. 9, unless
exempted by law or by the provisions of Section E below, shall be taxed for the
purposes, to the extent, and in the manner herein provided , including property
subsequently annexed to CFD No. 9 unless a separate Rate and Method of
Apportionment of Special Tax is adopted for the annexation area.
A. DEFINITIONS
The terms hereinafter set forth have the following meanings:
“Assessor’s Parcel” or “Parcel” means a lot or parcel shown on an assessor’s parcel
map with an assigned assessor’s parcel number.
“Assessor’s Parcel Map” means an official map of the County Assessor of the County
of Fresno designating parcels by assessor’s parcel number.
“City” means the City of Fresno.
“City Law” means the City of Fresno Special Tax Financing Law, Chapter 8, Division 1,
Article 3, of the Fresno Municipal Code.
“Commercial or Industrial Developments or Subdivisions” means developments or
subdivisions zoned for commercial or industrial uses.
“Council” means the City Council of the City of Fresno, acting as the legislative body of
CFD No. 9.
“Developable Lot” means a lot that is anticipated development of residential or non -
residential uses, and which is not an outlot, remainder parcel or other parcel which is
not intended to be developed or which must be further subdivided before being
developed.
“Development” means any assessor’s parcel within the City of Fresno which is being
developed for Industrial, Commercial, or Multi-Family purposes and requires a Building
Permit.
EXHIBIT D
D-3
“Excluded Parcels” means those assessor’s parcels identified as ineligible for
inclusion in CFD No. 9 as shown in “Attachment 1” of this Rate and Method of
Apportionment of Special Tax.
“Final Map” means a final map, or portion thereof, approved by the Council pursuant to
the Subdivision Map Act (California Government Code Section 66410 et seq.) that
creates individual developable lots for which building permits may be issued. The term
“Final Map” shall not include any assessor’s parcel map or subdivision map or portion
thereof, that does not create individual developable lots for which a building permit may
be issued, including assessor’s parcels that are designated as remainder parcels.
“Fiscal Year” means the period starting April 1 and ending on the following March 31.
“Maximum Special Tax” means the maximum special tax, determined in accordance
with Section C, which can be levied in any Fiscal Year.
“Public Property” means any property within the boundaries of CFD No. 9 that is
owned by the federal government, State of California or other local governments or
public agencies.
“Reserve for Replacement” means a reasonable reserve pursuant to Fresno
Municipal Code 8-1-303(e) (4), as a Service cost or expense and not as payment for
public facilities under Government Code Section 53321(d).
“Residential Development or Subdivision” means developments or subdivisions
zoned for residential multi-family uses.
“Residential Unit” means a multi-family residential dwelling unit and shall include
condominiums, town homes, duplex, triplex and fourplex units, and individual apartment
units in a multi-family subdivision. For purposes of the levy of special taxes pursuant to
Section B below, “Residential Units” shall include dwelling units already built on taxable
property in CFD No. 9, as well as dwelling units planned, but not yet built, when the
special tax is levied each fiscal year.
“Shared Services” means the costs of services are paid equally by the property
owners of two or more subdivisions.
“Special Tax” means any special tax to be levied each fiscal year on assessor’s
parcels of taxable property to fund the Special Tax Requirement as defined below.
“Special Tax Requirement” means the amount necessary in any fiscal year to (i) pay
authorized maintenance and improvement expenses, (ii) pay administrative expenses of
CFD No. 9, and (iii) cure any delinquencies in the payment of special taxes levied in
prior fiscal years or (based on delinquencies in the payment of special taxes which have
already taken place) are expected to occur in the fiscal year in which the tax will be
collected.
EXHIBIT D
D-4
“Subdivision” means the division, by any subdivider, of any unit or units of improved or
unimproved land, or any portion thereof, shown on the latest equalized county
assessment roll as a unit or as contiguous units, for the purpose of sale, lease, or
financing whether immediate or future. Property shall be considered as contiguous
units, even if it is separated by roads, streets, utility easement or railroad rights -of-way.
“Subdivision” includes a condominium project, as defined in Section 4125 of the Civil
Code, a community apartment project, as defined in Section 4105 of the Civil Code.
“Taxable Property” means all of the assessor’s parcels within the boundaries of CFD
No. 9 which are not exempt from the special tax pursuant to law or Section E below.
B. CALCULATIONS
COMMERCIAL AND INDUSTRIAL DEVELOPMENTS OR SUBDIVISIONS
On or about April 1 of each fiscal year, the City of Fresno (City) or its designee shall
determine how many square feet of taxable area are in each assessor’s parcels within
each commercial or industrial development or subdivision of CFD No. 9.
For commercial or industrial developments or subdivisions, the area to be taxed is the
total area within each assessor’s parcels of the subdivision or development not
designated as public right-of-way and is not to exceed the Maximum Special Tax
identified for the development or subdivision in Section C, Table 1 below.
RESIDENTIAL SUBDIVISIONS
On or about April 1 of each fiscal year, the City or its designee shall determine how
many residential units are built, or allowed to be built, on assessor’s parcels within CFD
No. 9. For parcels of undeveloped property zoned for development of multi-family units,
the number of residential units shall be determined by referencing the condominium
plan, apartment plan, site plan or other development plan, or by assigning the maximum
allowable units permitted based on the underlying zoning for the parcel. Once a multi-
family building or buildings have been built on an assessor’s parcel, the City or its
designee shall determine the actual number of residential units contained within the
building or buildings, and the special tax levied against the parcel in the next fiscal year
shall be calculated by dividing the Special Tax Requirement by the actual number of
residential units not to exceed the Maximum Special Tax per residential unit identified
for the subdivision in Section C, Table 1 below.
C. MAXIMUM SPECIAL TAX
The Maximum Special Tax (MST) applicable to each assessor’s parcel in CFD No. 9
shall be specific to each development, subdivision, subdivisions, or portion thereof
within CFD No. 9. When additional property is annexed into CFD No. 9, the rate and
method adopted for the annexed property shall reflect the MST for the development,
subdivision, subdivisions, or respective portion thereof then annexed.
EXHIBIT D
D-5
The MST applicable to each development, subdivision, subdivisions, or portion thereof
in CFD No. 9 shall be the rate that is created at the time of CFD No. 9 annexation
expressly for the individual development, subdivision, subdivisions, or portion thereof
being annexed to CFD No. 9 at that time. Beginning in January of each year, the MST
will be adjusted upward annually by 2% or by the rise of the Construction Cost Index
(CCI), if it exceeds 2%, for the San Francisco Region for the prior 12 -month period
(December through December) as published in the Engineering News Record, or
published in a comparable index if the Engineering News Record is discontinued or
otherwise not available. Each annual adjustment of the MST shall become effective on
the subsequent July 1.
Subject to the maximum limit set by the MST, the Special Tax for the commercial,
industrial or multi-family development or subdivision assessor’s parcels is calculated by
spreading the Special Tax Requirement to the total taxable square footage of the
development or subdivision and then apportioned proportionately by area to the
individual assessor’s parcels within the development or subdivision or by the number of
residential units as applicable.
The total Maximum Special Tax for Fiscal Year 2024-2025 for Annexation No. 64 of
CFD No. 9 is identified in Table 1 below:
Table 1
Maximum Special Tax
(Fiscal Year 2024-2025)
Multi-Family Development Number* Total Maximum Special Tax
P23-01302 $1,343.00
Assessor’s Parcel Number 506-130-04S
*A Special Tax shall be levied on all assessor’s parcels within an identified development
or subdivision except excluded parcels as identified in Attachment 1.
D. METHOD OF LEVY AND COLLECTION OF THE SPECIAL TAX
Commencing with Fiscal Year 2024-2025, the Special Tax shall be levied on all parcels
of taxable property as follows:
Step 1: Determine the Special Tax Requirement (as defined in Section A
above) for the fiscal year in which the special tax will be collected;
Step 2: Calculate the total special tax revenues that could be collected from
taxable property within CFD No. 9 based on applying the Maximum
EXHIBIT D
D-6
Special Tax rates determined pursuant to Section C above to each
parcel of taxable property in CFD No. 9;
If the amount determined in Step 1 is greater than or equal to the
amount calculated in Step 2, levy the Maximum Special Tax set forth
in Table 1 above on all parcels of taxable property in CFD No. 9;
If the amount determined in Step 1 is less than the amount calculated
in Step 2, levy the Special Tax proportionately against all parcels of
taxable property up to 100% of the Maximum Special Tax for each
subdivision as identified in Table 1, until the amount of the Special
Tax levy equals the Special Tax Requirement for that fiscal year.
The Special Tax for CFD No. 9 shall be collected in the same manner and at the same
time as ordinary ad valorem property taxes, provided, however, that CFD No. 9 may
(under the authority of Government Code 53340), in any particular case, bill the taxes
directly to the property owner off of the County of Fresno tax roll, and the Special Taxes
will be equally subject to penalties and foreclosure if delinquent.
E. EXEMPTIONS
Notwithstanding any other provision of this Rate and Method of Apportionment of
Special Tax, no Special Tax shall be levied on parcels that have been conveyed to a
public agency, except as otherwise provided in City Law, and properties receiving a
welfare exemption under subdivision (g) of Section 214 of the Revenue and Taxation
Code. In addition, no Special Tax shall be levied on excluded parcels or parcels that
are determined not to be developable lots.
EXHIBIT D
D-7
ATTACHMENT 1
City of Fresno
Community Facilities District No. 9
Annexation 64
Excluded Parcels
THERE ARE NO EXCLUDED PARCELS
WITHIN THE BOUNDARIES OF ANNEXATION NO. 64
City of Fresno
Staff Report
2600 Fresno Street
Fresno, CA 93721
www.fresno.gov
File #:ID 25-106 Agenda Date:1/30/2025 Agenda #:
2.-X.
REPORT TO THE CITY COUNCIL
FROM:CITY OF FRESNO RETIREMENT BOARDS
BY:ROBERT T. THELLER, Retirement Administrator
City of Fresno Retirement Office
SUBJECT
Submission for informational purposes of the Annual Comprehensive Financial Reports (“ACFR”)
regarding the financial activities of the City of Fresno Retirement Systems for the Fiscal Year Ending
June 30, 2024
RECOMMENDATION
The Retirement Boards have reviewed and approved the attached Annual Comprehensive Financial
Reports for the fiscal year ended June 30, 2024, and recommend that the City Council receive and
accept the reports for informational purposes.
EXECUTIVE SUMMARY
The Retirement Boards are pleased to submit the Annual Comprehensive Financial Reports
(“ACFR”) for the fiscal year ended June 30, 2024, to the City Council for informational purposes to
keep the City Council informed and provide knowledge of the Retirement Systems’ activities during
the past fiscal year.
BACKGROUND
ACFR Information
The Retirement Boards, at their meeting on December 11, 2024, approved the attached Annual
Comprehensive Financial Reports (“ACFR”) for the fiscal year ended June 30, 2024. At that meeting,
the Boards directed the Retirement Administrator to submit each ACFR to the City Council, Mayor,
and City Manager and to keep the City informed on the activities of the Retirement Systems.
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a
Certificate of Achievement for Excellence in Financial Reporting to the City of Fresno Retirement
Systems for each of their Annual Comprehensive Financial Reports for the fiscal year ended June 30,
2023. To receive a Certificate of Achievement award, a government must publish an easily readable
and efficiently organized annual comprehensive financial report. These reports must satisfy both
generally accepted accounting principles and applicable legal requirements.
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REPORT RECEIVED
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The two City of Fresno Retirement Boards,which oversee the administration of the Retirement
Systems and combined investments of ~$4.02 billion as of June 30,2024,respectfully submit the
results of their fiscal year 2024 investment earnings and the actuarial funding status of the Systems.
The Annual Comprehensive Financial Reports ("ACFR")of the City of Fresno Retirement Systems for
the years ended June 30,2024,and 2023 are submitted herewith.Information contained within these
reports provides a complete and accurate review of the year's operations.Responsibility for both the
accuracy of the data,and the completeness and fairness of the presentation,rests with the
management of the Systems.For a general overview of the Systems’finances,please refer to
Management's Discussion and Analysis letter in the Financial Section of the ACFR reports.
In addition to the information in the ACFR reports,we have prepared the attached ACFR Highlights
which summarizes information on the City’s Retirement Systems.These documents provide Council
members with an overview of the Systems.For a summary of major initiatives of the retirement plans,
refer to pages iv and v in the Introductory Section of the attached ACFR Reports.
The ACFR Reports were prepared as of June 30, 2024, and consist of six sections:
1.The Introductory Section describes the Systems’management and organizational structure,
a summary of the plan provisions and a listing of the professional services providers.
2.The Financial Section contains the general-purpose financial statements of the Systems and
the Independent Auditor’s Opinion Letter.
3.The Investment Section includes a letter from the Systems’investment consultant,NEPC,
recapping the fiscal year investment results and activities,along with performance and asset
allocation information.
4.The Actuarial Section includes the certification letter produced by the independent actuary,
The Segal Company, along with supporting schedules and information.
5.The Statistical Section which includes trend information and graphs.
6.The Compliance Section which includes the Independent Auditor’s Internal Control Letter.
For the year ended June 30,2024,the Boards adopted and implemented all applicable new
Government Accounting Standards Board (GASB)pronouncements for the fiscal year ended June
30, 2024, as required by each statement.
Systems’ Funding Status
It is important to note that the projected FY2026 contribution rates included as part of the FY2024
Actuarial Report do not reflect the City’s current decision to not contribute the full actuarially
determined contribution rate for fiscal year 2025 to either the Employees Retirement System or the
Fire and Police Retirement System.This contribution rate is derived from each System’s ’s “normal
cost,”which is the amount the Retirement Systems’actuary has determined is necessary to fund the
retirement benefits that members are currently accruing for a single year of service,under the terms
of the City of Fresno Municipal Code.It is designed to fund the system to 100%of its funding needs
and not above that level.The FY2024 Actuarial Report also does not include the City’s ’s decision to
not implement the updated contribution rates for the active members (current City employees)of the
Employees Retirement System.The actuarially determined contribution rate may be lower than the
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System’s normal cost if there is sufficient surplus as defined by the City of Fresno Municipal Code.
The City’s decision to not contribute the full actuarially determined employer contribution rates to
either the Employees Retirement System or the Fire and Police Retirement System,as well as the
Employees Retirement System member contribution rates for FY2025,will affect each System's
future funding status.
Furthermore,as previously noted,as of June 30,2024,the Employees Retirement System had a
Valuation Value of Assets of 109.8%,which did not meet the surplus declaration requirement of
exceeding 110%of the actuarial accrued liability to lower the member and employer contribution
rates below the normal cost.
If measured on a market value of assets basis,the funding status of the City of Fresno Employees
Retirement Systems is 112.8%,and the City of Fresno Fire and Police Retirement System is 118%.
The Systems have continued to achieve favorable investment returns during volatile investment
markets.
Retirement Board Adopted City Actuarially Determined Rates for Fiscal Year 2026
The Retirement Boards,at their Board meetings on November 26,2024,adopted the following
actuarially determined City Contribution rates for Fiscal Year 2026:
Not Implemented
ACFR Current Adopted
System FY 2024 FY 2025 FY 2026
Employees Retirement System 13.38% 14.06% 13.94%
Actual/Est. City Contributions (In Thousands) $28,621 $34,520 $34,214
Fire and Police Retirement System (Blended Tiers) 21.08% 23.09% 23.31%
Actual/Est. City Contributions (In Thousands) $30,635 $37,546 $37,913
City of Fresno Employees Retirement System
The actuarially determined employer contribution rate for fiscal year 2026 is 13.94%,a decrease of
0.12%from the fiscal year 2025 actuarially determined contribution rate of 14.06%.The fiscal year
2025 actuarially determined contribution rate was net of applicable surplus credits,due to the
Employees Retirement System’s 111.1%surplus status as of June 30,2023.The fiscal year 2026
actuarially determined contribution rate did not include any surplus credits,as the System’s funded
status of 109.8%as of June 30,2024,did not meet the surplus declaration requirement of assets on
an actuarial basis exceeding 110% of the actuarial accrued liability.
The decrease in actuarially determined contribution rates is primarily due to a change in membership
demographics among all active (DROP and non-DROP) members.
The City’s fiscal year 2025 implemented rate of 13.38%is 0.68%below the actuarially determined
contribution rate of 14.06%.
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City of Fresno Fire and Police System
The blended Fire and Police System rate of 23.31% for fiscal year 2026 is an increase of 0.22% from
the actuarially determined contribution rate of 23.09% for fiscal year 2025. Due to the current surplus
funding status, the fiscal year 2026 actuarially determined contribution rate of 23.31% is net of 1.93%
in surplus credits which amount to approximately $3.1 million in City contribution savings for the fiscal
year 2026.
The actuarially determined contribution rate for fiscal year 2026 (23.31%) represents an increase of
2.23% when compared to the City's implemented contribution rate for fiscal year 2025 of 21.08%.
The implemented rate is 2.01% below the actuarially determined rate of 23.09% This increase in the
actuarially determined contribution rate from the previous year’s actuarially determined contribution
rate is primarily due to a decrease in the surplus available to pay a portion of the employer rate,
partially offset by changes in membership demographics among all active (DROP and non-DROP)
members.
We strongly caution the City of Fresno that the projected surplus offsets/savings in City
contributions, due to the System’s current funding status, might be short-term or temporary.
This is due to the uncertainty of the investment return environment, which may cause the
funded status to decline below the 110% required for a surplus declaration. This concern is
heightened by the City’s current decision to deviate from the actuarially determined
contribution rate. The long-term consequences of diminishing surplus credits and the City
making actual contributions below the actuarially determined contribution rates will likely
lead to increased contribution rates in the future, directly impacting the General Fund.
Investment Return Information
For the fiscal year ended June 30, 2024, the Systems’ annual return is 10.59% gross of fees; three-
year return is 4.06%, five-year return is 8.42%, and ten-year return is 7.49%.
It is of utmost importance to examine the Systems’ investment returns with a long-term view due to
the extreme volatility in the various economies of the world and the global financial markets over the
past twenty to twenty-five years (and anticipated continued volatility) rather than a short term focus
which tends to distort the perception of how well the investments have performed. The short and long
-term (one, three, five, ten, fifteen, twenty and twenty-five year) performance rates demonstrate the
extreme volatility of the markets and the Systems’ ability to meet or exceed its current actuarial
assumed rate of return of 6.75% over longer periods. As of June 30, 2024, the Systems’ 20-year
annualized return is 7.57%, and its 25-year annualized return is 6.89%.
Investment returns achieved by the Boards on a risk-controlled basis without the use of higher risk
investment vehicles such as hedge funds.See Attachment 1 - Fiscal Year Total Fund Annual
Returns.
System Membership Activity
Membership activity in the Retirement Systems during the fiscal year resulted in a total net addition of
296 members; the Employees Retirement System active membership increased by 273 members
and the Fire and Police Retirement System active membership increased by 23 members for the one
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and the Fire and Police Retirement System active membership increased by 23 members for the one
-year period ended June 30, 2024.
The number of retirees has also increased slightly with the Systems’ adding a net total of 110 retirees
for a total combined retired membership of 3,523 on June 30, 2024.See Attachment 2 - History of
the Systems Active Members and Retirees.
ENVIRONMENTAL FINDINGS
N/A
LOCAL PREFERENCE
N/A
FISCAL IMPACT
N/A
Attachments:
1. Fiscal Year Total Fund Annual Returns
2. History of Employees Systems Active Members and Retirees
3. History of Fire and Police System Active Members and Retirees
4. ACFR Highlights 06302024
5. Employees Retirement System ACFR FY 2024
6. Fire and Police Retirement System ACFR FY 2024
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Fire & Police Employees Combined Combined Net
Description System System Systems Systems Change
FY 2024 FY 2024 Totals FY 2024 Totals FY 2023
Net Assets Restricted for Pension Benefits 2,203,370,816$ 1,815,104,966$ 4,018,475,782$ 3,729,149,837$ 7.76%
Net increase (decrease) in Assets 157,533,929$ 131,792,016$ 289,325,945$ 275,885,161$
Retirement Benefits Payments 86,681,263$ 81,555,616$ 168,236,879$ 153,686,681$ 9.47%
Annualized Investment Returns:
One Year Performance 10.59%9.77%
Three Years Performance 4.06%10.05%
Five Year Performance 8.42%7.42%
Ten Year Performance 7.49%8.15%
Twenty Year Performance 7.57%7.90%
Twenty-Five Year Performance 6.89%6.96%
Asset Allocation Targets:
Equities
Domestic Equities 22.50%24.00%
International Equities 18.00%20.00%
Private Equities 6.50%5.00%
Total Equities 47.00%49.00%
Rates/Credit
Core Fixed Income 13.00%13.00%
High Yield Fixed Income 0.00%0.00%
Private Debt/Credit 14.00%12.00%
Total Rates/Credit 27.00%25.00%
Real Assets
Core Real Estate 9.00%10.00%
Non-Core Real Estate 6.00%5.00%
Infrastructure 7.00%7.00%
Total Real Assets 22.00%22.00%
Multi-Asset
Alternative Credit 4.00%4.00%
Midstream Energy 0.00%0.00%
Total Multi-Assets 4.00%4.00%
Short-Term Investments 0.00%0.00%
Total Asset Allocation 100.00%100.00%
Membership:
Active 1,226 2,967 4,193 3,897 7.60%
Retired 1,220 2,303 3,523 3,413 3.22%
Inactive Deferred Vested 71 240 311 275 13.09%
Totals 2,517 5,510 8,027 7,585 5.83%
Contributions
Member Contributions 13,107,833$ 18,833,018$ 31,940,851$ 26,948,023$ 18.53%
City Contributions 30,635,176$ 28,621,359$ 59,256,535$ 49,304,052$ 20.19%
City/Member Normal Contribution rates:Member Member City City
Fire and Police Tier 1 6.22%30.25%29.80%
Fire and Police Tier 2 9.00%25.47%25.35%
Fire and Police Blended City rate net 21.08%20.34%
Employees System 8.90%13.38%11.97%
Actuarial Funding Status:
Actuarial Funding Staus 114.9%109.8%
Market Value Funding Status 118.0%112.8%
Actuarial Assumptions:
Annual Inflation 2.50%2.50%2.50%
Annual Investment Assumption 6.75%6.75%6.75%
Financial Reporting (GAS 67)
Net Pension Liability % of Total Liability 110.4%108.4%
City of Fresno Employees Retirement System
A Pension Trust Fund of the City of Fresno (California)
ANNUAL COMPREHENSIVE
FINANCIAL REPORT
FOR FISCAL YEARS ENDED JUNE 30, 2024 AND 2023
Issued by:
Robert T. Theller
Retirement Administrator
Kathleen Riley Brown
Assistant Retirement Administrator
2828 Fresno Street Suite 201, Fresno, CA 93721-1327
(559) 621-7080 / Retire@Fresno.gov
www.CFRS-CA.org
TABLE OF CONTENTS
Introduction Section
Letter of Transmittal ..................................................................................................................................................................................
i
City of Fresno Employees Retirement System Board Members ...............................................................................................................
ix
City of Fresno Retirement Office Staff ........................................................................................................................................ .............x
Administration of the System ....................................................................................................................................................................
xi
Organizational Structure ............................................................................................................................................................................ xii
Professional Services and Consultants ......................................................................................................................................................
xiii
Investment Portfolio Managers ................................................................................................................................................................. xiv
Certificate of Achievement for Excellence in Financial Reporting .......................................................................................................... xv
Financial Section
Independent Auditor’s Report ................................................................................................................................................................... 2
Management’s Discussion and Analysis ................................................................................................................................................... 5
Basic Financial Statements
Statement of Fiduciary Net Position ......................................................................................................................................................... .16
Statement of Changes in Fiduciary Net Position .......................................................................................................................................
17
Notes to the Basic Financial Statements ................................................................................................................................................... .18
Required Supplementary Information
Schedule of Changes in the Net Pension Liability ...............................................................................................................................
53
Schedule of Employer Contributions ................................................................................................................................................... 55
Schedule of Investment Returns .......................................................................................................................................................... .55
Notes to the Required Supplementary Information ............................................................................................................................. .56
Other Supplementary Information
Schedule of Administrative Expenses .................................................................................................................................................. 58
Schedule of Investment Management Expenses ..................................................................................................................................
59
Schedule of Payments to Consultants .................................................................................................................................................. .59
Investment Section
Investment Report from the Retirement Administrator ............................................................................................................................. 61
Investment Consultant’s Report ................................................................................................................................................................ 66
Investment Results (Gross and Net of Fees) .............................................................................................................................................
68
Target Asset Allocation and Actual Asset Allocation ............................................................................................................................... 70
Largest Stock and Bond Holdings ............................................................................................................................................................. 72
Schedule of Commissions .........................................................................................................................................................................
73
Investment Summary ................................................................................................................................................................................. 73
City of Fresno Employees Retirement System
Actuarial Section
Actuarial Certification Letter .................................................................................................................................................................... .75
Summary of Actuarial Assumptions and Funding Method ....................................................................................................................... 78
Probabilities of Separation Prior to Retirement ........................................................................................................................................ .80
Schedule of Active Member Valuation Data .............................................................................................................................................81
Schedule of Retirees and Beneficiaries Added to or Removed from Rolls ...............................................................................................82
Solvency Test ............................................................................................................................................................................................83
Actuarial Analysis of Financial Experience ..............................................................................................................................................84
Schedule of Funding Progress ...................................................................................................................................................................84
Major Benefit Provisions of the Retirement System .................................................................................................................................85
History of Employer Net Contribution Rates ............................................................................................................................................86
Statistical Section
Statistical Section Review..........................................................................................................................................................................88
Schedule of Changes in Fiduciary Net Position ........................................................................................................................................89
Schedule and Graph of Additions by Source .............................................................................................................................................90
Schedule and Graph of Deductions by Type .............................................................................................................................................91
Membership Information
Schedule of Average Benefit Payments ...............................................................................................................................................92
Retirees by Type of Benefit ..................................................................................................................................................................94
Schedule and Graph of Pension Benefit Payments Deductions by Type .............................................................................................95
Schedule and Graph of Active Vested, Active Non-Vested and Deferred Membership History .........................................................96
Schedule and Graph of Retirees Pension Benefit Payments by Type of Benefit .................................................................................97
Summary of Active Participants and Retirees ......................................................................................................................................98
Member and City Contribution Rates .................................................................................................................................................. 99
Economic Assumptions and Funding Method .....................................................................................................................................99
Benefits and Withdrawals Paid ............................................................................................................................................................100
Average Monthly Benefits to Retirees .................................................................................................................................................101
Expectation of Life (Age and Service Retirees) ..................................................................................................................................102
Expectation of Life (Disabled Retirees) ...............................................................................................................................................102
Compliance Section
Independent Auditor’s Report on Internal Control ....................................................................................................................................104
Over Financial Reporting and on Compliance
and Other Matters Based on an Audit of
Financial Statements Performed in Accordance
With Government Auditing Standards
City of Fresno Employees Retirement System
MISSION STATEMENT
To protect and provide System benefits through the highest
quality delivery of service for our members and the employer,
prudently fulfilling our fiduciary duties of investment and
conservation of Trust assets.
BOARD AND STAFF COMMITMENT
We promise to carry out our Mission through a competent,
professional, impartial and open decision-making process. In
providing benefits and services, all persons will be treated
fairly, with courtesy and respect. Assets will be invested and
administered to balance the need to control risk with superior
performance. We expect excellence in all activities. We will
also be accountable and act in accordance with the law.
GOALS
• To create an environment in which Board Members can
maximize their performance as trustees.
• To improve business processes and our delivery of services
provided to members and retirees.
• To improve communications with members, retirees and the
employer.
• To attract, develop and retain competent and professional staff.
• To achieve and maintain superior investment performance on a
risk controlled basis measured by the Public Fund Universe.
City of Fresno Employees Retirement System
The Employees
Retirement System was
established on June 1,
1939 and is maintained
and governed by Article 5
of the Fresno Municipal
Code.
The Employees
Retirement System (the
System) provides
retirement benefits for all
qualified non-sworn
employees of the City of
Fresno.
INTRODUCTION
i Letter of Transmittal
ix City of Fresno Employees Retirement System Board Members
x City of Fresno Retirement Administrative Staff
xi Administration of the System
xii Organizational Structure
xiii Professional Services and Consultants
xiv Investment Portfolio Managers
xv Certificate of Achievement for Excellence in Financial Reporting
Letter of Transmittal
Robert T. Theller, Esq.
RETIREMENT ADMINISTRATOR
Dear Retirement Board and System Members:
As Retirement Administrator of the City of Fresno Employees Retirement System (the System), it is with great pleasure that I
submit the Annual Comprehensive Financial Report (ACFR) for the fiscal years ended June 30, 2024 and 2023.
The past fiscal year demonstrated resilience and growth despite facing challenges. Real Gross Domestic Product (GDP) grew
at a healthy pace, exceeding expectations and driven largely by consumer spending. This strong consumer activity was fueled
by a continued tight labor market with low unemployment and increasing wages. Inflation, a major concern in the previous
year, gradually cooled throughout the fiscal year, responding to the Federal Reserve's interest rate hikes.
While the Federal Reserve's actions were successful in slowing inflation, they also raised concerns about a potential
economic slowdown. These fears did not fully materialize; although, some sectors, like housing, experienced a noticeable
cool down. Global economic uncertainties, including the ongoing war between Russia and Ukraine, and persistent supply
chain issues, contributed to some volatility in the market.
The U.S. economy successfully navigated a complex landscape in Fiscal Year 2024, overcoming challenges such as lingering
pandemic effects, global economic headwinds, and government debt. This resilience was largely due to strong consumer
spending and the gradual easing of inflation, suggesting continued growth in the coming year.
Despite the complex economic environment of Fiscal Year 2024, the System demonstrated resilience and maintained its
strong financial footing. This stability is a testament to its long-term focus. Notably, the System concluded the fiscal year
fully funded on both a fair value and actuarial valuation basis at 112.8 percent and 109.8 percent, respectively. From a long-
term perspective, the System is positioned to provide a solid rate of return that is equal to or better than the respective asset
classes market indices even as we enter yet another year of uncertainties in the global economic and financial markets. The
Retirement Board (the Board) has carefully managed the investment portfolio throughout the global pandemic, and we
remain confident that new investment opportunities will arise and the Board, with the required amount of due diligence and
vigilance, will position the System’s investments for future long-term growth.
City of Fresno Employees Retirement System l INTRODUCTION
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 i
The System’s returns for the last two years have been positive at 10.59 percent and 9.77 percent for the fiscal years ended
June 30, 2024 and 2023, respectively. The fiscal year 2024 return of 10.59 percent exceeded the System’s assumed rate of
return of 6.75 percent effective June 30, 2024; the fiscal year 2023 return of 9.77 percent also exceeded the assumed rate of
return of 6.75 percent effective June 30, 2023.
In fiscal year 2024, the System’s gross of fee returns provided by its custodian, Northern Trust, when compared to other
institutional investors and weighted policy benchmarks, were slightly higher in the short-term, and also consistently higher
over the long-term. The System’s gross of fees one-year return was 10.59 percent, 0.70 percent above its policy benchmark
return of 9.89 percent; also outperforming its actuarial interest rate assumption of 6.75 percent by 3.84 percent in fiscal year
2024. The five-year annualized gross of fees return of 8.42 percent was 1.67 percent above its actuarial interest rate
assumption of 6.75 percent and above its policy benchmark return of 7.35 percent by 1.07 percent. The System's ten-year
annualized gross of fees return at 7.49 percent exceeded its policy benchmarks of 6.66 percent by 0.83 percent and also
exceeded its actuarial interest rate assumption by 0.74 percent for the same period.
The System remains highly funded and well positioned to serve our members and retirees. As illustrated by the System’s 10,
15 and 25-year long-term gross of fees returns of 7.49 percent, 9.54 percent, and 6.89 percent, respectively, as of June 30,
2024, the System has the ability to achieve its long-term objectives over extended periods. Meanwhile, the System’s
actuarial and fair value funding status continues to be the highest of any public non-safety pension defined benefit plan in
California.
The Annual Comprehensive Financial Report (ACFR)
The Annual Comprehensive Financial Report (ACFR) of the City of Fresno Employees Retirement System for fiscal years
ended June 30, 2024 and 2023 is submitted herewith. Information contained in this report is designed to provide a complete
and accurate review of the years' operations. Responsibility for both the accuracy of the data, and the completeness and
fairness of the presentation, rests with the management of the System. For a general overview of the City of Fresno
Employees Retirement System’s finances, please refer to the Management’s Discussion and Analysis in the Financial Section
of this report. The ACFR consists of six sections:
The Introduction Section contains our Mission Statement, a Letter of Transmittal, a description of the System’s management
and organizational structure, a listing of the professional services providers, and the Government Finance Officers
Association’s Certificate of Achievement for Excellence in Financial Reporting.
The Financial Section contains the opinion of the independent auditor, Brown Armstrong Accountancy Corporation,
Management’s Discussion and Analysis, the Basic Financial Statements of the System, the Required Supplementary
Information and the Other Supplementary Information.
The Investment Section includes an Investment Report from the Retirement Administrator, a letter from the System’s
Investment Consultant, NEPC, LLC (NEPC), recapping the fiscal year investment results and activities, along with
performance and asset allocation information. Investment Consultant returns may differ slightly from the custodian's book of
record due to rounding methodology.
City of Fresno Employees Retirement System l INTRODUCTION
Letter of Transmittal Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 ii
The Actuarial Section includes the certification letter produced by the independent actuary, The Segal Company, along with
supporting schedules and information.
The Statistical Section contains significant detailed data pertaining to the System.
The Compliance Section contains the Independent Auditor’s Report on Internal Control Over Financial Reporting and on
Compliance And Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government
Auditing Standards.
I trust that the Board and Members of the System will find this ACFR helpful in understanding the System and our
commitment to financial integrity and member services.
THE EMPLOYEES RETIREMENT SYSTEM AND ITS SERVICES
The Employees Retirement System was established on June 1, 1939, under Charter Section 910 and is governed by Article 5
of Chapter 3 of the City of Fresno Municipal Code. The System provides retirement allowances to the non-safety members
employed by the City of Fresno (the City). In accordance with the provisions of the City of Fresno Municipal Code, the
System provides lifetime retirement, disability, and death benefits to its members.
The Employees Retirement Board is responsible for establishing policies governing the administration of the System, making
benefit determinations, and managing the investment of the System’s assets. The Board operates under the authority vested in
Article 5 of Chapter 3 of the City of Fresno Municipal Code and the California Pension Protection Act of 1992. Article XVI,
Section 17(b) of the Constitution of the State of California provides that “the members of the Retirement Board of a public
retirement system shall discharge their duties ... solely in the interest of, and for the exclusive purpose of providing benefits
to, participants and their beneficiaries, minimizing employer contributions thereto, and defraying reasonable expenses of
administering the System. A Retirement Board’s duty to its participants and their beneficiaries shall take precedence over any
other duty.” Section 17(a) further provides that the Board has ... “the sole and exclusive responsibility to administer the
System in a manner that will assure prompt delivery of benefits and related services to the participants and their
beneficiaries.” The Retirement Board is also responsible for the prudent investment of member and employer contributions
and defraying reasonable expenses of administration.
The Retirement Board has five (5) members: two (2) management employees who are appointed by the Mayor and confirmed
by the City Council, one (1) employee who is elected by the manual workers of the System, and one (1) employee who is
elected by the clerical or supervisory workers of the System; both elected members serve a four-year term. The fifth and final
member of the Board is a qualified elector of the City, not connected with its government, appointed by the previously
designated four members. The Board oversees the Retirement Administrator and staff in the performance of their duties in
accordance with the Municipal Code and the Board’s Rules, Regulations and Policies.
City of Fresno Employees Retirement System l INTRODUCTION
Letter of Transmittal Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 iii
Major Initiatives
The Board, jointly with the City of Fresno Fire & Police Retirement System Board (the Boards), with the assistance of Staff
and their Investment Consultant, continued asset class reviews, investment education and evaluations related to all investment
classes.
The Boards approved an investment with Grain Communications following an investment and operational due diligence
review of the firm and its processes in September 2023. Following investment and operational due diligence review, and
legal review, the Boards also approved investments with Volta Technologies, and Carlyle’s Renewable and Sustainable
Energy Fund. The Boards also reviewed and approved a pacing plan for Private Debt for 2024, conducted a real estate
program review and updated a real estate pacing plan.
Effective January 1, 2017, the IRS eliminated its staggered five-year remedial amendment cycle system for individually
designed qualified retirement plans and no longer accepts applications for determination letters. The System's letter of
determination was effective through January 31, 2019. The IRS' current determination letter program, in general, provides
that a plan sponsor that maintains a qualified plan, with a favorable determination letter, may continue to rely on the
determination with respect to any plan provision, until such time that the plan provision subsequently is amended or affected
by a change in law. The Boards retained the services of the law firm of Ice Miller, LLP (Ice Miller) to assist with a review of
our plan documents and applicable statutes in effect through 2013, and any plan amendments or changes to provisions made
after January 1, 2014. Based on their initial review, since the date of the plan's favorable determination letter May 26, 2014,
the plan has been timely amended to comply with the changes required to be tax qualified under Internal Revenue Code § 401
(a). Staff began work with Ice Miller in 2019 to review the Retirement Systems' plan provisions for continued IRS
Compliance. The proposal from Ice Miller to participate in the IRS Comply Now program included updating of the Systems’
plan provisions to incorporate certain distribution provisions and new provisions required by the Setting Every Community
Up for Retirement Enhancement (SECURE) and Coronavirus Aid, Relief and Economic Security (CARES) Acts. Comply
Now reports detailing the changes to be considered were presented to the Boards during fiscal year 2021. Given the passage
of SECURE 2.0 in 2022, Staff will work with counsel on additional updates to, amendments of the plans.
Retirement Benefits Staff have continued to provide all the necessary information and support that Members need, answering
individual questions and assisting members in making informed decisions regarding retirement. Staff are available to assist
and answer member questions via telephone, face to face meetings and via online video conferencing. Staff also provide
further outreach to active employees via the Mid-Career Retirement Seminars. These seminars provide an overview of the
benefits available to active members who may be considering retirement or Deferred Retirement Option Program (DROP) in
the next 5-10 years.
City of Fresno Employees Retirement System l INTRODUCTION
Letter of Transmittal Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 iv
With the assistance of its actuary and staff, the Board completed the annual actuarial valuations for June 30, 2024 and 2023,
and Governmental Accounting Standards Board (GASB) Statement No. 67, which redefines pension liability and expense for
financial reporting purposes only. In accordance with Actuarial Standards of Practice (ASOP) No. 51, the System's actuary
has identified and assessed risks that may be reasonably anticipated to significantly affect the System's future financial
condition, which helps intended users of the actuarial findings gain a better understanding of risks inherent in the
measurements of pension obligations and actuarially determined pension plan contributions.
Professional Services
Professional Services Consultants and Investment Portfolio Managers are retained by the Board to provide professional
services essential to the effective and efficient operation of the System. See listings on pages xiii and xiv.
An opinion from the Independent Auditor and a certification letter from the Actuary are included in this report along with a
summary investment report from the Board’s Investment Consultant. The Consultants and Investment Managers retained by
the Board are listed in the following section of this report.
Certificate of Achievement
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of
Achievement for Excellence in Financial Reporting to the City of Fresno Employees Retirement System for its annual
comprehensive financial report for the fiscal year ended June 30, 2023. The Certificate of Achievement is a prestigious
national award recognizing excellence in the preparation of public employee retirement system annual comprehensive
financial reports.
To be awarded a Certificate of Achievement for Excellence in Financial Reporting, a government entity must publish an
easily readable and efficiently organized annual comprehensive financial report. This report must satisfy both generally
accepted accounting principles and applicable legal requirements.
A Certificate of Achievement for Excellence in Financial Reporting is valid for a period of one year only. The System has
received a Certificate of Achievement for the last 23 consecutive years. We believe that our current annual comprehensive
financial report continues to meet the Certificate of Achievement Program’s requirements and we are submitting it to the
GFOA to determine its eligibility for another certificate. For fiscal year 2023, the System submitted a Popular Annual
Financial Report (PAFR) to the GFOA. The System received from the GFOA an Award for Outstanding Achievement in
Popular Annual Financial Reporting. The PAFR provides System membership with condensed and concise information in an
easier to read format than is presented in the ACFR.
City of Fresno Employees Retirement System l INTRODUCTION
Letter of Transmittal Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 v
Actuarial Funding Status and Net Pension Liability
The System’s funding objective is to meet long-term benefit promises by retaining a well-funded plan status and obtaining
superior investment returns while minimizing employer contributions. The Board’s objective for employer contributions is to
establish a rate as a level percent of member payroll. The greater the level of overall plan funding, the larger the ratio of
assets accumulated compared to the actuarial accrued liability and the greater the level of investment potential. The advantage
of a well-funded plan is that the benefits earned by participants are funded during their working careers and not by future
generations of taxpayers.
The June 30, 2024 actuarial valuation is presented in this ACFR. As of June 30, 2024, the funded ratio of the Employees
Retirement System was 109.8 percent. The ratio of the valuation value of assets to actuarial accrued liabilities was 111.1
percent as of the June 30, 2023, valuation. The funding ratios as of June 30, 2024 and 2023, if measured using the fair value
of assets instead of the actuarial valuation value of assets, are 112.8 percent and 111.7 percent, respectively. The funded
ratios were determined by using the actuarial value of the assets in accordance with actuarial standards.
The actuarial accrued liability of the System at June 30, 2024, for funding purposes, amounted to $1,457,747,000; the
actuarial valuation value of assets amounted to $1,600,472,705; and the fair value of assets (including non-valuation reserves)
amounted to $1,815,104,966. At June 30, 2023, the actuarial valuation value of assets amounted to $1,509,532,380; the fair
value of assets (including non-valuation reserves) amounted to $1,683,312,950.
Under the Governmental Accounting Standards Board (GASB) Statement No. 67 Financial Reporting methodology, the net
pension liability of the System as of June 30, 2024 indicates a surplus of $140,220,397; while on an actuarial funding basis
the valuation value of assets basis reflects a surplus of $142,725,705 and a funding ratio of 109.8 percent. At June 30, 2023,
the net pension liability of the System indicated a surplus of $116,329,197 and a funding ratio of 111.1 percent. For financial
reporting purposes, the Plan Fiduciary Net Position as a percentage of the Total Pension Liability is 108.37% and 107.42% as
of June 30, 2024 and 2023, respectively.
The Board engages an independent actuarial consulting firm to conduct annual actuarial valuations of the System. The
purpose of the actuarial valuation is to reassess the magnitude of the benefit commitments. This is compared to the assets
expected to be available to support those commitments. Recommendations are presented to the Board for consideration. The
Segal Company is the System’s independent actuarial consultant. The Actuarial Section of this report contains a more
detailed discussion of funding.
City of Fresno Employees Retirement System l INTRODUCTION
Letter of Transmittal Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 vi
Accounting System & Reports
The management of the System is responsible for establishing and maintaining an internal control structure designed to
ensure that System assets are protected from loss, theft, or misuse. Responsibility for the accuracy, completeness, and fair
presentation of the information, and all disclosures, rests with the management of the System.
The accounting firm of Brown Armstrong Accountancy Corporation provides financial audit services. The financial audit
ensures that the System’s financial statements are presented in conformity with accounting principles generally accepted in
the United States of America (GAAP) and are free of material misstatement. The internal controls are designed to provide
reasonable but not absolute assurance that these objectives are met. The System recognizes that even sound internal controls
have their inherent limitations. Internal controls are reviewed to ensure that the System’s operating policies and procedures
are being adhered to and that the controls are adequate to ensure accurate and reliable financial reporting and to safeguard the
System’s assets. The objective is to provide a reasonable, rather than absolute, assurance that the financial statements are free
of any material misstatements given the prudent need to ensure that the cost of a control should not exceed the benefits to be
derived. We believe that the System's internal controls adequately safeguard assets.
This report has been prepared in accordance with Generally Accepted Accounting Principles for State and Local
Governments (GAAP) as established by the Governmental Accounting Standards Board (GASB). The System’s transactions
are reported on the accrual basis of accounting. Revenues are taken into account when earned, regardless of the date of
collection. Expenses are recorded when the corresponding liabilities are incurred, regardless of when the payment is made.
Investments
Article XVI, Section 17(c) of the Constitution of the State of California, provides that “the members of the Retirement Board
of a public pension or retirement system shall discharge their duties... with the care, skill, prudence, and diligence under the
circumstances then prevailing that a prudent person acting in a like capacity and familiar with these matters would use in the
conduct of an enterprise of a like character and with like aim.” By permitting further diversification of investments within a
fund, the prudent expert standard may enable a fund to reduce overall risk and increase returns. A summary of the asset
allocation can be found in the investment section of this report and in Note 2 – Summary of Significant Accounting Policies
(see section Investment).
The prudent expert rule permits the Board to establish an investment policy based upon professional advice and counsel and
allows for delegation of investment authority to professional investment advisors. The Investment Objectives and Policy
Statement of the Board outline the responsibility for the investment of the fund and the degree of risk that is deemed
appropriate for the fund. Investment advisors are to execute the policy in accordance with the Board policy and guidelines.
For the fiscal years ended June 30, 2024 and 2023, the System’s investments provided a 10.59 percent and 9.77 percent gross
of fees rate of return, respectively, as reported by the custodian, Northern Trust.
City of Fresno Employees Retirement System l INTRODUCTION
Letter of Transmittal Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 vii
City of Fresno Employees Retirement System l INTRODUCTION
Letter of Transmittal Continued
Acknowledgments
The compilation of this report reflects the combined effort of the System’s staff under the leadership of the Board. It is
intended to provide complete and reliable information as a basis for making management decisions, as a means of
determining compliance with legal provisions, and as a means of determining responsible stewardship of the funds of the
System.
On behalf of the Board, I would like to express my appreciation for the dedication and efforts of my staff members, Kathleen
Riley Brown, Yvonne Timberlake, Chad Jacobs, Alberto Magallanes, Karen Espiritu, Cristina Jurado, Kristina Espinoza,
Pattie Laygo, Andrea Ketch, Patricia Basquez, Joan Taketa, Katie Baroni, Tracy Gonzales, Enia Leon, Erika Cortes,
Machelle Smiley, Cecilia Lopez, Gilberto Torentela, and the Board's consultants, for their assistance in the preparation of this
report and for their ongoing commitment to serve the Board and the members of the System. I also would like to thank the
Board members for their support in accomplishing the many tasks and goals over the past year.
Respectfully Submitted,
Robert T. Theller
Robert T. Theller, Esq.
Retirement Administrator
December 4, 2024
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 viii
Retirement Board Members
As of June 30, 2024
Chair
Phillip Hardcastle
Re-Elected June 2024
Term Expires June 2028
Represents Clerical and Supervisory Members
Vice Chair
Alma Torres
Appointed August 2020
Term Continuous
Appointed by the Mayor and Confirmed by the Fresno City Council
David Cain
Re-Elected June 2022
Term Expires July 2026
Represents Manual Worker Members
Marvell French
Appointed July 2000
Term Continuous
Outside Member Appointed by Retirement Board
Ruthie Quinto
Appointed December 2022
Term Continuous
Appointed by the Mayor and Confirmed by the Fresno City Council
City of Fresno Employees Retirement System l INTRODUCTION
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 ix
Retirement Office Staff
Administrative Services (From left to right)
Cecilia Lopez
Senior Administrative Clerk
Chad Jacobs
Investment Officer
Pattie Laygo
Retirement Office Manager
Robert T. Theller, Esq.
Retirement Administrator
Tracy Gonzales
Senior Customer Services Clerk
Gilberto Torentela
Senior Administrative Clerk
Financial Services (From left to right)
Karen Espiritu
Senior Accountant Auditor
Alberto Magallanes
Retirement Accounting Manager
Kathleen Riley-Brown
Assistant Retirement Administrator
Kristina Espinoza
Accounting Technician
Cristina Jurado
Accountant Auditor II
Member Services (From left to right)
Andrea Ketch
Retirement Benefits Manager
Enia Leon
Retirement Counselor II
Yvonne Timberlake
Assistant Retirement Administrator
Erika Cortes
Retirement Counselor II
Machelle Smiley
Retirement Counselor II
Joan Taketa
Retirement Counselor II
Patti Basquez (not pictured)
Senior Retirement Counselor
City of Fresno Employees Retirement System l INTRODUCTION
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 x
Administration of the System
Administration
The Administrative Section is responsible for the administration of the City of Fresno Employees Retirement System,
including the risk management of the investment activities in accordance with the policies, regulations, and general
guidelines of the Retirement Board. It is also responsible for interfacing with the investment managers, the investment
consultant, the actuary, legal counsel, custodial bank, and any other consultants authorized by the Board. (See pages xiii
for professional services and consultants, page xiv for investment portfolio managers, and page 73 for a schedule of
brokerage commissions, and investment manager fees by listed asset class.)
Member Services
This section is responsible for providing all benefit services to the members of the System. This includes benefit
calculations, investigation of claims for disability retirement, preparation of data to support applications for retirement,
preparation of the retiree payroll, membership counseling, and membership training.
Financial Services
This section is responsible for planning, organizing and directing all fiscal activities of the Retirement Systems. This
includes the preparation and publication of the Annual Financial Reports, monthly or quarterly financial report and
information to the Board, and all other financial records and reports including financial statements, control and balancing of
payroll and members' contributions and reconciliation of investments.
Investment Officer
This position is responsible for monitoring compliance with the Board’s Investment Objectives and Policy Statement and
assists and coordinates in the management and administration of the System's investment program. This includes the planning
and development of investment strategies.
Retirement Office Manager
This position is responsible for providing administrative and clerical support services for the Board and the retirement staff.
City of Fresno Employees Retirement System l INTRODUCTION
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 xi
Organizational Structure
City of Fresno Employees Retirement System l INTRODUCTION
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 xii
Professional Services and Consultants
Custodial Bank
NORTHERN TRUST
Chicago, Illinois
General Legal Advisor
SALTZMAN AND JOHNSON LAW CORPORATION
San Francisco, California
Legal Advisor
NOSSAMAN LLP
San Francisco, California
Tax Counsel
ICE MILLER LLP
Indianapolis, Indiana
Investment Legal Advisor
FOLEY & LARDNER LLP
Boston, Massachusetts
Investment Consultant
NEPC, LLC
Boston, Massachusetts
Actuary
THE SEGAL COMPANY
San Francisco, California
Medical Advisor
BENCHMARK, AN EXAMWORKS COMPANY, INC.
Sacramento, California
Independent Auditor
BROWN ARMSTRONG ACCOUNTANCY CORPORATION
Bakersfield, California
City of Fresno Employees Retirement System l INTRODUCTION
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 xiii
Investment Portfolio Managers
EQUITY
Domestic Equity
Northern Trust Asset Management, Chicago, IL
International Equity
BlackRock, San Francisco, CA
Baillie Gifford & Co., Edinburgh, Scotland
Principal Global Investors, Des Moines, IA
Private Equity
Ocean Avenue Capital Partners, Santa Monica, CA
Pantheon Ventures, San Francisco, CA
Volta Energy Technologies, Naperville, IL
RATES/CREDIT
Core Fixed Income
Dodge & Cox, San Francisco, CA
Prudential Investment Mgmt., Inc., Newark, NJ
Private Debt/Credit
Arcmont Asset Mgmt, London, United Kingdom
Crescent Capital, Los Angeles, CA
Monroe Capital, Chicago, IL
PIMCO COF, Newport Beach, CA
REAL ASSETS
Core Real Estate
The Carlyle Group, Washington, D.C.
JP Morgan Asset Mgmt., New York, NY
Tristan Capital Partners, London, United Kingdom
Grain Management, LLC, Washington, D.C.
Non-Core Real Estate
Alidade Capital, Bloomfield Hills, MI
Artemis Real Estate Partners, Chevy Chase, MD
Blue Vista Capital Management, Chicago, IL
Brookfield Asset Management, New York, NY
Kayne Anderson, Boca Raton, FL
Oaktree Capital Management, Los Angeles, CA
PCCP, LLC, Los Angeles, CA
PIMCO BRAVO III, Newport Beach, CA
Infrastructure
JP Morgan IIF, New York, NY
Ullico UIF, Chicago, IL
MULTI-ASSETS
Alternative Credit
Cloverlay, Conshohocken, PA
Sixth Street/TAO, San Francisco, CA
City of Fresno Employees Retirement System l INTRODUCTION
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 xiv
City of Fresno Employees Retirement System l INTRODUCTION
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 xv
To protect and provide
system benefits through
the highest quality
delivery of service for our
members and the
employer, prudently
fulfilling our fiduciary
duties of investment and
conservation of Trust
assets.
FINANCIAL
2 Independent Auditor's Report
5 Management's Discussion and Analysis
16 Basic Financial Statements
18 Notes to the Basic Financial Statements
53 Required Supplementary Information
58 Other Supplementary Information
Independent Auditor’s Report
City of Fresno Employees Retirement System l FINANCIAL
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 2
Independent Auditor’s Report Continued
City of Fresno Employees Retirement System l FINANCIAL
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 3
Independent Auditor’s Report Continued
City of Fresno Employees Retirement System l FINANCIAL
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 4
Management's Discussion and Analysis
We are pleased to provide this overview and analysis of
the financial activities of the City of Fresno Employees
Retirement System (the System) for the fiscal years ended
June 30, 2024 and 2023. We encourage readers to
consider the information presented here in conjunction
with additional information that we have furnished in the
Letter of Transmittal beginning on page i of this report.
Financial Highlights
The System’s net position restricted for pension benefits
is for payment of pension benefits to participants and their
beneficiaries, and all of the net position is restricted to
meet the System’s ongoing obligations.
At the close of the fiscal year 2024, the assets of the
System exceed its current liabilities by $1,815,104,966; as
of fiscal year-end 2023, the assets of the System exceeded
its liabilities by $1,683,312,950; as of fiscal year 2022,
the assets of the System exceeded its liabilities by
$1,562,187,480.
The System’s net position restricted for pension benefits
increased by $131,792,016 or 7.83 percent for fiscal year
2024; increased by $121,125,470 or 7.75 percent for fiscal
year 2023; and decreased by $169,049,933 or 9.76 percent
for fiscal year 2022, primarily as a result of the
performance of the investment markets.
The System’s funding objective is to meet long-term
benefit obligations through contributions and investment
income. As of June 30, 2024, the date of the last actuarial
valuation, the funded ratio for the System was 109.8
percent reflecting that the System has a valuation value of
assets which is in excess of the actuarial accrued liability.
In general, this indicates that for every dollar of benefits
due, we have approximately $1.10 of assets available for
payment as of that date.
As of June 30, 2023, the date of the previous annual
actuarial valuation, the funded ratio for the System was
111.1 percent; and as of June 30, 2022, the funded ratio
for the System was 114.0 percent.
Additions to Fiduciary Net Position
Additions for the fiscal year 2024 increased $16,167,649
or 8.04 percent over the prior year from $201,144,634 to
$217,312,283, which includes employee contributions of
$18,833,018, employer contributions of $28,621,359, a
net investment gain of $169,694,000 and net securities
lending income of $163,906.
Fiscal year 2023 additions increased $296,260,331 or
311.47 percent over the prior year from $-95,115,697 to
$201,144,634, which included member contributions of
$14,894,336, employer contributions of $22,236,117, a
net investment gain of $163,716,667 and net securities
lending income of $297,514.
For fiscal year 2022 additions decreased $536,820,627 or
121.53 percent over the prior year from $441,704,930 to
$-95,115,697, which included member contributions of
$15,492,662, employer contributions of $22,016,525, a
net investment loss of $-132,893,282 and net securities
lending income of $268,398.
Deductions from Fiduciary Net Position
Deductions from fiduciary net position for the fiscal year
2024 increased $5,501,103 or 6.87 percent over the prior
fiscal year from $80,019,164 to $85,520,267.
City of Fresno Employees Retirement System l FINANCIAL
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 5
Fiscal year 2023 deductions increased $6,084,928 or 8.23
percent over the prior fiscal year 2022 from $73,934,236
to $80,019,164.
Fiscal year 2022 deductions increased $2,629,816 or 3.69
percent over the prior fiscal year 2021 from $71,304,420
to $73,934,236.
The current year increase in deductions is due primarily to
the increases in retirees and the respective retirement
benefits paid in 2024 even though there were no Post
Retirement Supplemental Benefits (PRSB) paid during
calendar year 2024.
Schedule and Graph of Additions By Source
For Fiscal Years Ended June 30, 2024, 2023 and 2022 (In Thousands)
2022 2023 2024
Employer Contributions $ 22,017 $ 22,236 $ 28,621
Employee Contributions 15,493 14,894 18,833
Investment Income (Loss)(132,626)164,015 169,858
TOTAL $ (95,116) 201,145 $ 217,312
Employer Contributions Employee Contributions
Investment Income (Loss)
2022 2023 2024
$-160,000
$-120,000
$-80,000
$-40,000
$0
$40,000
$80,000
$120,000
$160,000
$200,000
$240,000
City of Fresno Employees Retirement System l FINANCIAL
Management's Discussion and Analysis Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 6
Schedule and Graph of Deductions By Type
For Fiscal Years Ended June 30, 2024, 2023 and 2022 (In Thousands)
2022 2023 2024
Benefit Payments $ 70,239 $ 76,025 $ 81,556
PRSB — — —
Refunds of Contributions 1,645 1,849 1,647
Administrative Expenses 2,050 2,145 2,317
TOTAL $ 73,934 $ 80,019 $ 85,520
Administrative Expenses Refunds of Contributions
PRSB Benefit Payments
2022 2023 2024
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000
$90,000
$100,000
City of Fresno Employees Retirement System l FINANCIAL
Management's Discussion and Analysis Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 7
Overview of the Financial Statements
The following discussion and analysis are intended to
serve as an introduction to the System’s financial
statements, which are comprised of these components:
Statement of Fiduciary Net Position – The
Statement of Fiduciary Net Position presents the major
categories of assets and liabilities and their related value
as of the System’s fiscal years ended June 30, 2024 and
2023. “Net Position Restricted for Pension Benefits”
represents funds available to pay benefits, and it is a point
in time or a snapshot of account balances as of the fiscal
year-end. It indicates the assets available for future
payments to retirees and any current liabilities. Increases
and decreases in Net Position Restricted for Pension
Benefits, when analyzed over time, may serve as an
indicator of whether the System’s financial position is
improving or deteriorating. Other factors, such as market
conditions, should also be considered in measuring the
System’s overall health.
Statement of Changes in Fiduciary Net Position
– The Statement of Changes in Fiduciary Net Position
provides information about the financial activities during
the reporting period that increased and decreased the Net
Position Restricted for Pension Benefits.
The two statements above include all assets and liabilities,
using the full accrual basis of accounting, which is similar
to the accounting method used by most private sector
companies. All of the current year’s additions and
deductions are taken into account regardless of when the
cash is received or paid. All investment gains and losses
are shown at trade date, not settlement date. In addition,
both realized and unrealized gains and losses are shown
on investments.
Both statements are in compliance with Governmental
Accounting Standards Board (GASB) Pronouncements.
These pronouncements require certain disclosures and
require State and Local governments to report using the
full accrual basis of accounting. The System complies
with all material requirements of these pronouncements.
Notes to the Basic Financial Statements - The
Notes to the Basic Financial Statements are an integral
part of the basic financial statements and provide
additional information that is essential to acquire a full
understanding of the information and data provided in the
two statements discussed above. The notes include
further discussion and details regarding the System’s key
policies, programs, investments and activities that
occurred during the year.
Required Supplementary Information – The
Required Supplementary Information presents historical
trend information concerning the changes in net pension
liability, employer contributions and investment returns,
and includes notes that explain factors that significantly
affect trends in the amounts reported, such as changes of
benefit terms, changes in the size or composition of the
population covered by the benefit terms, or the use of
different assumptions over time. The information is based
on actuarial valuations prepared for the pension plan. The
actuarial valuation report includes additional actuarial
information that contributes to the understanding of the
changes in the net pension liability of the defined benefit
pension plan over the past ten years as presented in the
schedule. The actuarial information is based upon
assumptions made regarding future events at the time the
valuations are performed and is derived for both financial
reporting and funding purposes.
City of Fresno Employees Retirement System l FINANCIAL
Management's Discussion and Analysis Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 8
Other Supplementary Information – The Other
Supplementary Information, presented immediately
following the required supplementary information,
includes schedules pertaining to the System’s
administrative expenses, investment management fees and
other investment related expenses, and payments to
consultants and other professional services providers.
The System’s funding ratio at June 30, 2024, was 109.8
percent, which means the System’s fund has
approximately $1.10 available for each $1.00 of liability.
The Statement of Fiduciary Net Position and the
Statement of Changes in Fiduciary Net Position report
information about the System’s financial activities during
the reporting periods that increased and decreased the Net
Position Restricted for Pension Benefits.
Financial Analysis Net Position
As previously noted, net position restricted for pension
benefits may serve over time as a useful indication of the
System’s financial position. The System's assets
exceeded its liabilities at the close of the fiscal year 2024
by $1,815,104,966. All of the net position is restricted to
meet the System’s ongoing obligations to plan
participants and their beneficiaries.
In fiscal year 2024, the System’s restricted fiduciary net
position, representing assets available to pay current and
future member pension benefits, increased by 7.83 percent
due to strong performance of the investment markets;
while in 2023, the System’s restricted fiduciary net
position increased by 7.75 percent due to strong
performance of the global investment markets (See Table
1); and also, due largely to volatility and fluctuations
lowering performance in the investment markets in 2022,
the System’s restricted fiduciary net position decreased by
9.76 percent.
In order to determine whether the $1.815 billion in net
position will be sufficient to meet future obligations, the
System’s independent actuary performed an actuarial
valuation as of June 30, 2024. The result of this valuation
determines what future contributions by plan members
and the City of Fresno are needed to pay all expected
future benefits. The valuation takes into account the
Retirement Board’s (the Board) funding policy which
includes a provision to smooth the impact of market
volatility by spreading each year’s gains or losses over
five years.
There has been extreme volatility in the various
economies of the world and throughout the global
financial markets over the past twenty to twenty-five
years, therefore, it is of utmost importance to examine the
System’s investment returns with a long-term view rather
than a short-term focus which tends to distort the
perception of how well the investments have actually
performed.
Historical long-term performance rates of returns
demonstrate that the System has been able to meet or
exceed its actuarial assumed rate of return of 6.75 percent
over long periods. As of June 30, 2024, the System’s 25-
year annualized return is 6.89 percent and its 20-year
annualized return is 7.57 percent.
Despite volatility in the stock market, management and
the System’s actuary concur that the System remains in a
very strong financial position to meet its obligations to the
plan participants and beneficiaries. The System’s current
financial position is a result of a very sound and carefully
managed investment and risk management program.
City of Fresno Employees Retirement System l FINANCIAL
Management's Discussion and Analysis Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 9
Table 1 – Employees Retirement System Fiduciary Net Position
Restricted For Pension Benefits
As of June 30, 2024, 2023 And 2022
FY 2024 FY 2024
FY 2024 FY 2023
Increase/
(Decrease)
Amount
Increase/
(Decrease)
Percent
Current and Other Assets $ 33,186,136 $ 47,692,664 $ (14,506,528) (30.42%)
Investments at Fair Value 1,813,865,588 1,684,557,828 129,307,760 7.68%
Total Assets $ 1,847,051,724 $ 1,732,250,492 $ 114,801,232 6.63%
Total Liabilities 31,946,758 48,937,542 (16,990,784) (34.72%)
Net Position Restricted for Pension Benefits $ 1,815,104,966 $ 1,683,312,950 $ 131,792,016 7.83%
FY 2023 FY 2023
FY 2023 FY 2022
Increase/
(Decrease)
Amount
Increase/
(Decrease)
Percent
Current and Other Assets $ 47,692,664 $ 77,603,540 $ (29,910,876) (38.54%)
Investments at Fair Value 1,684,557,828 1,569,195,263 115,362,565 7.35%
Total Assets $ 1,732,250,492 $ 1,646,798,803 $ 85,451,689 5.19%
Total Liabilities 48,937,542 84,611,323 (35,673,781) (42.16%)
Net Position Restricted for Pension Benefits $ 1,683,312,950 $ 1,562,187,480 $ 121,125,470 7.75%
Total Assets Total Liabilities
FY 2024 FY 2023 FY 2022
$0
$500,000,000
$1,000,000,000
$1,500,000,000
$2,000,000,000
City of Fresno Employees Retirement System l FINANCIAL
Management's Discussion and Analysis Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 10
Capital Assets
The System’s investment in capital assets decreased from
$347,021 to $211,960 (net of accumulated depreciation)
between fiscal years 2023 and 2024 after decreasing from
$482,246 to $347,021 (net of accumulated depreciation)
between fiscal years 2022 and 2023. This investment in
capital assets includes office equipment, furniture,
software, and technology infrastructure. The total
decrease in the System's investment in capital and
intangible capital assets as of June 30, 2024 and 2023 was
attributed to the disposal of capital assets no longer of
service and the annual depreciation expense which netted
to $(135,061) and $(135,225), respectively. These
changes in both fiscal years were primarily due to the
costs and associated depreciation incurred for the
development of software to program and install an
upgrade to our original pension administration system that
was originally installed in 1997, which was implemented
effective July 1, 2015. For additional, more detailed,
information related to the System's capital assets, please
refer to Note 12 - Capital Assets on page 50.
Reserves
Reserves are not required, nor recognized, under
accounting principles generally accepted in the United
States of America (GAAP). The reserves are not shown
separately on the Statement of Fiduciary Net Position, but
they equate to and are accounts within the net position
restricted for pension benefits and are vital to the
System’s operations. They are established from
contributions and the accumulation of investment income,
after satisfying investment and administrative expenses.
Investments of the System are stated at fair value instead
of at cost, which includes the recognition of unrealized
gains and losses in the current period.
The System’s major reserve accounts, described in Note 5
– Net Position Restricted for Pension Benefits, include
Active Member (Employee) Reserves, Employer
Advance/Retired Reserves, DROP Reserves, PRSB
Reserves and City Surplus Reserves.
Deferred Retirement Option Program (DROP) Reserves
represent funds reserved for Deferred Retirement Option
Program benefits accumulated by active members and
retirees. DROP is an alternate method of receiving
retirement benefits. It is a voluntary program as described
by the conditions and requirements of the City of Fresno
Municipal Code Section 3-566. A DROP account is a
nominal, bookkeeping account established within the
System for each DROP participant. Monthly amounts
credited to DROP accounts include an amount which
represents the service retirement allowance which the
member would have received if the member had retired
on the date the member commenced DROP participation
and interest credited at the five-year average interest rate
as adopted by the Retirement Board (the Board) in
accordance with the City of Fresno Municipal Code
requirements.
Post Retirement Supplemental Benefit (PRSB) Reserves
represent surplus earnings that have been allocated but not
distributed to eligible participants in accordance with the
City of Fresno Municipal Code Section 3-567. PRSB is a
supplemental benefit distributed to eligible participants in
accordance with the City of Fresno Municipal Code
Section 3-567, if and only if distributable actuarial surplus
is available to provide such a benefit. Actuarial surplus
means the amount by which the actuarial value of the
System’s assets exceeds one hundred and ten percent
(110%) of the System’s actuarial accrued liabilities. The
PRSB Reserves account was exhausted at the end of
December 2013.
City of Fresno Employees Retirement System l FINANCIAL
Management's Discussion and Analysis Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 11
City Surplus Reserves represent that portion of
distributable actuarial surplus that has been allocated but
not used as a reduction to offset or eliminate the City of
Fresno’s (the City) pension contributions in accordance
with the conditions and requirements of Municipal Code
Section 3-567 Post Retirement Supplemental Benefits.
The City Surplus Reserves account accrues interest at the
average gross rate of return earned by the System’s entire
investment portfolio for each of the three prior fiscal
years, including realized and unrealized gains and losses
and as reduced by all investment related expenses.
Table 2 shows that the vast majority of reserves are
generated from Employer Advance/Retired Reserves.
DROP Reserves represent funds credited for participants
who elected to participate in the Deferred Retirement
Option Program. PRSB Reserves present that portion of
distributable actuarial surplus that has been allocated for
PRSB but not yet distributed to eligible participants.
Additions to and deductions from PRSB occur when
surpluses and allocations occur, respectively. The City
Surplus reserves represent that portion of distributable
actuarial surpluses and accrued interest, reduced by
required City normal pension contributions. The City
Surplus Reserves account shall be drawn upon in
subsequent years if needed to reduce or eliminate the
City’s annual pension contribution requirement.
The City Surplus Reserves account shows a negative
balance for the fiscal year 2024, fiscal year 2023 was also
negative, while fiscal year 2022 showed a positive
balance. The City’s normal contribution rates for fiscal
years 2024 and 2023 also included adjustments for
economic and non-economic actuarial assumption
changes.
Table 2 – Employees Retirement System’s Reserves
As of June 30, 2024, 2023 and 2022 (In Thousands)
FY 2024 FY 2023 FY 2022
Employer Advance/Retired Reserves $ 1,488,300 $ 1,376,856 $ 1,269,348
Active Member (Employee) Reserves 155,954 139,691 131,234
DROP Reserves 171,142 166,976 161,451
PRSB Reserves — — —
City Surplus Reserves (291) (210) 154
Net Position Restricted for Pension Benefits $ 1,815,105 $ 1,683,313 $ 1,562,187
FY 2024 FY 2023 FY 2022
Employer Adv/
Ret
Active Member
(Employee)
DROP PRSB City Surplus
$0
$250,000
$500,000
$750,000
$1,000,000
$1,250,000
$1,500,000
City of Fresno Employees Retirement System l FINANCIAL
Management's Discussion and Analysis Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 12
System’s Activities
Attributable in part to the continued growth and volatility
in global economic and financial markets, the System’s
net position increased $131,792,016 for the fiscal year
2024, resulting in a 7.83 percent increase in the fiduciary
net position restricted for pension benefits for the fiscal
year ended June 30, 2024. The System’s fiduciary net
position increased $121,125,470 for the fiscal year 2023,
resulting in a 7.75 percent increase in the fiduciary net
position restricted for pension benefits for the fiscal year
ended June 30, 2023, primarily attributable to the growth
in the global financial markets. In fiscal year 2022, the
System’s fiduciary net position decreased $169,049,933
resulting in a 9.76 percent decrease in the fiduciary net
position restricted for pension benefits for the fiscal year
ended June 30, 2022.
Key elements of the additions to and deductions from
Fiduciary Net Position for fiscal years 2024, 2023 and
2022 are described in the sections below.
Additions to the System’s Fiduciary Net
Position
The reserves needed to finance retirement benefits are
normally accumulated through the collection of employer
and employee contributions and through earnings of
investment income net of investment expense. Total
additions to the System's fiduciary net position for the
fiscal year ended June 30, 2024 totaled $217,312,283.
For the fiscal year ended June 30, 2024, overall additions
had increased by $16,167,649 or 8.04 percent primarily
due to the performance of the investment markets. For
fiscal year 2023, overall additions had increased by
$296,260,331 or 311.47 percent from the prior year; and
for fiscal year ended June 30, 2022, primarily due to the
performance of the investment markets and changes in
actuarial assumptions, overall additions had decreased by
$536,820,627 or 121.53 percent from the prior fiscal year.
The investment section of this report reviews the details
of the results of investment activity for the fiscal year
ended June 30, 2024.
Deductions from the System’s Fiduciary Net
Position
The System was created to provide lifetime retirement
annuities, survivor benefits and permanent disability
benefits to qualified members and their beneficiaries. The
cost of such programs includes recurring benefit
payments, as designated by the System, refunds of
contributions to terminated employees, and the cost of
administering the System.
Deductions from the fiduciary net position for the fiscal
year ended June 30, 2024, totaled $85,520,267 which was
an increase of $5,501,103 or 6.87 percent over the prior
fiscal year 2023. Deductions from the fiduciary net
position for the fiscal year ended June 30, 2023, totaled
$80,019,164 which was an increase of $6,084,928 or 8.23
percent over the prior fiscal year 2022. The fiscal year
ending June 30, 2022 had deductions from the fiduciary
net position totaling $73,934,236, which was an increase
of $2,629,816 or 3.69 percent over the prior fiscal year
2021. The increase in benefits paid resulted primarily
from an increase in the amount of benefit payments due to
the number of retirees from the prior year.
The System’s increases in total deductions have closely
paralleled inflation and are reflective of the membership
and services provided. The System has consistently met
its Administrative Budget. There are no material
variances between planned expenses and actual expenses.
City of Fresno Employees Retirement System l FINANCIAL
Management's Discussion and Analysis Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 13
Changes in Fiduciary Net Position (Condensed)
For Fiscal Years Ended June 30, 2024, 2023 and 2022
FY 2024 FY 2024
Increase/
(Decrease)
Increase/
(Decrease)
FY 2024 FY 2023 Amount Percent
Additions
Employer Contributions $ 28,621,359 $ 22,236,117 $ 6,385,242 28.72%
Employee Contributions 18,833,018 14,894,336 3,938,682 26.44%
Net Investment Income (Loss)* 169,857,906 164,014,181 5,843,725 3.56%
Total Additions $ 217,312,283 $ 201,144,634 $ 16,167,649 8.04%
Deductions
Retiree Benefit Payments $ 81,555,616 $ 76,024,703 $ 5,530,913 7.28%
Post Retirement Supplemental Benefit (PRSB) — — — —%
Refunds of Contributions 1,646,573 1,848,595 (202,022) (10.93%)
Administrative Expenses 2,318,078 2,145,866 172,212 8.03%
Total Deductions $ 85,520,267 $ 80,019,164 $ 5,501,103 6.87%
Changes in Net Position 131,792,016 121,125,470 10,666,546 8.81%
Net Position Restricted for Pension Benefits
Beginning of the Year 1,683,312,950 1,562,187,480 121,125,470 7.75%
End of the Year $ 1,815,104,966 $ 1,683,312,950 $ 131,792,016 7.83%
* Net of investment expense of $35,663,820 and $26,691,439 for June 30, 2024 and 2023, respectively.
FY 2023 FY 2023
Increase/
(Decrease)
Increase/
(Decrease)
FY 2023 FY 2022 Amount Percent
Additions
Employer Contributions $ 22,236,117 $ 22,016,525 $ 219,592 1.00%
Employee Contributions 14,894,336 15,492,662 (598,326)(3.86%)
Net Investment Income (Loss)* 164,014,181 (132,624,884) 296,639,065 223.67%
Total Additions $ 201,144,634 $ (95,115,697) $ 296,260,331 311.47%
Deductions
Retiree Benefit Payments $ 76,024,703 $ 70,239,143 $ 5,785,560 8.24%
Post Retirement Supplemental Benefit (PRSB) — — — —%
Refunds of Contributions 1,848,595 1,645,235 203,360 12.36%
Administrative Expenses 2,145,866 2,049,858 96,008 4.68%
Total Deductions $ 80,019,164 $ 73,934,236 $ 6,084,928 8.23%
Changes in Net Position 121,125,470 (169,049,933)290,175,403 171.65%
Net Position Restricted for Pension Benefits
Beginning of the Year 1,562,187,480 1,731,237,413 (169,049,933)(9.76%)
End of the Year $ 1,683,312,950 $ 1,562,187,480 $ 121,125,470 7.75%
* Net of investment expense of $26,691,439 and $17,098,477 for June 30, 2023 and 2022, respectively.
City of Fresno Employees Retirement System l FINANCIAL
Management's Discussion and Analysis Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 14
City of Fresno Employees Retirement System l FINANCIAL
Management's Discussion and Analysis Continued
System’s Fiduciary Responsibilities
The System’s Board and management staff are fiduciaries of the pension trust fund. Under the California Constitution, the
assets must be used exclusively for the benefit of plan participants and their beneficiaries.
Requests for Information
This financial report is designed to provide the Retirement Board, our membership, taxpayers, investment managers, and
creditors with a general overview of the City of Fresno Employees Retirement System’s finances, and to show accountability
for the funds it receives. Questions concerning any of the information provided in this report, or requests for additional
financial information, should be addressed to:
City of Fresno Employees Retirement System
2828 Fresno Street Suite 201
Fresno, California 93721-1327
Respectfully submitted,
Robert T. Theller
Robert T. Theller, Esq.
Retirement Administrator
December 4, 2024
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 15
Basic Financial Statements
Statement of Fiduciary Net Position
As of June 30, 2024 and 2023
2024 2023
ASSETS
Cash (Note 7)$ 545,336 $ 547,117
Collateral Held for Securities Lent (Note 9) 24,737,950 22,259,394
Receivables
Receivables for Investments Sold 5,004,319 17,781,397
Interest and Dividends 1,868,313 1,680,049
Other Receivables 713,143 4,942,754
Total Receivables 7,585,775 24,404,200
Prepaid Expenses — —
Total Current Assets 32,869,061 47,210,711
Investments at Fair Value and NAV (Notes 6 and 7)
Domestic Equities 441,275,085 426,767,391
International Equities 354,893,134 365,577,219
Private Equity 131,684,368 101,515,534
Fixed Income 224,246,610 203,918,928
Private Debt/Credit 243,292,717 208,300,798
Real Assets 382,654,714 354,324,504
Multi-Assets 29,104,101 15,474,636
Short-Term Investments 6,714,859 8,678,818
Total Investments 1,813,865,588 1,684,557,828
Capital Assets Net of Accumulated Depreciation (Note 12) 211,960 347,021
Other Assets 105,115 134,932
Total Assets 1,847,051,724 1,732,250,492
LIABILITIES
Collateral Held for Securities Lent (Note 9) 24,737,950 22,259,394
Payable for Investments Purchased 5,644,357 14,087,034
Other Liabilities 852,450 7,677,263
Payable for Foreign Currency Purchased 712,001 4,913,851
Total Liabilities 31,946,758 48,937,542
Net Position Restricted for Pension Benefits (Note 5)$ 1,815,104,966 $ 1,683,312,950
The accompanying notes to the basic financial statements on pages 18 -52 are an integral part of this statement.
City of Fresno Employees Retirement System l FINANCIAL
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 16
Statement of Changes in Fiduciary Net Position
For Fiscal Years Ended June 30, 2024 and 2023
2024 2023
ADDITIONS
Contributions (Note 3)
Employer $ 28,621,359 $ 22,236,117
Employee 18,833,018 14,894,336
Total Contributions 47,454,377 37,130,453
Investment Income (Loss)
Net Appreciation/(Depreciation) in Fair Value of Investments 189,059,116 170,225,291
Interest 8,547,058 9,580,701
Dividends 6,266,693 8,942,422
Other Investment Related Income 126,348 66,294
Total Investment Income (Loss) 203,999,215 188,814,708
Less: Investment Expense (34,305,215) (25,098,041)
Total Net Investment Income (Loss) 169,694,000 163,716,667
Securities Lending Income
Securities Lending Earnings (Note 9) 1,522,511 1,890,912
Less: Securities Lending Expense (1,358,605) (1,593,398)
Total Net Securities Lending Income 163,906 297,514
Total Additions 217,312,283 201,144,634
DEDUCTIONS
Benefit Payments 81,555,616 76,024,703
Post Retirement Supplemental Benefits (Note 11) — —
Refunds of Contributions 1,646,573 1,848,595
Administrative Expense 2,318,078 2,145,866
Total Deductions 85,520,267 80,019,164
Changes in Net Position 131,792,016 121,125,470
NET POSITION RESTRICTED FOR PENSION BENEFITS
BEGINNING OF YEAR 1,683,312,950 1,562,187,480
END OF THE YEAR $ 1,815,104,966 $ 1,683,312,950
The accompanying notes to the basic financial statements on pages 18 -52 are an integral part of this statement.
City of Fresno Employees Retirement System l FINANCIAL
Basic Financial Statements Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 17
Notes to the Basic Financial Statements
1 Significant Provisions of the
Retirement System
The City of Fresno Employees Retirement System (the
System) was established on June 1, 1939, under Charter
Section 910 and is governed by Article 5 of Chapter 3 of
the City of Fresno Municipal Code. The System is a
single-employer, contributory, defined benefit plan. The
System provides lifetime retirement, disability, and death
benefits to the non-safety members employed by the City
of Fresno (the City), including substantially all full-time
employees, other than sworn officers of the Fire and
Police Departments.
The System is administered by the Employees Retirement
Board (Board) which operates under the authority vested
in Article 5 of Chapter 3 of the City of Fresno Municipal
Code and the California Pension Protection Act of 1992
which provides that “the members of the Retirement
Board of a public retirement system shall discharge their
duties…solely in the interest of, and for the exclusive
purpose of providing benefits to participants and their
beneficiaries, minimizing employer contribution thereto,
and defraying reasonable expenses of administering the
System.”
The Employees Retirement Board does not operate under
the control of the City Council. The Board has the sole
and exclusive responsibility to administer the System in a
manner that will assure prompt delivery of benefits and
related services to the members and their beneficiaries.
Fiduciary oversight of the Employees Retirement System
is vested with the Board, which consists of five (5)
members: two (2) management employees who are
appointed by the Mayor and confirmed by the City
Council, one (1) employee who is elected by the manual
workers of the System, and one (1) employee who is
elected by the clerical or supervisory workers of the
System; both elected members serve a four-year term. The
fifth and final member of the Board is a qualified elector
of the County of Fresno, not connected with its
government, elected by the previously designated four
members and serves at the pleasure of the Board.
The Board, in conjunction with the Fire and Police
Retirement Board, appoints, directs and oversees a
Retirement Administrator. The Retirement Administrator
is responsible for the overall management and
administration of the Employees and Fire and Police
Retirement Systems in accordance with the direction,
policy and goals set by the Boards and for providing
highly responsible and complex administrative support to
the Boards. The Retirement Administrator serves at the
pleasure of the Boards.
Working closely with the Boards, the Retirement
Administrator and his staff develop investment and
benefits policies, coordinate member services and
programs, and develop long-term strategies that fulfill the
Systems’ mission and goals.
The Board oversees the Retirement Administrator and
staff in the performance of their duties in accordance with
the City of Fresno Municipal Code and the Board’s Rules,
Regulations and Policies.
City of Fresno Employees Retirement System l FINANCIAL
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 18
Membership and Benefit Eligibility
All permanent full-time employees of the City of Fresno,
except sworn Fire and Police personnel, are eligible to
participate in the plan. Employees become eligible for
membership on their first day of regular employment, and
members become fully vested after earning 5 years of
service credit.
Total participants of the System were comprised
as follows at June 30, 2024 and 2023:
2024 2023
Active Members
Vested 1,458 1,410
Non-Vested 1,509 1,284
Total Active Members 2,967 2,694
Retirees and Beneficiaries of Deceased
Retirees, Currently Receiving Benefits 2,303 2,226
Inactive Vested Members 240 213
Total Retirees, Beneficiaries,
and Inactive Members 2,543 2,439
Grand Total 5,510 5,133
Benefit Provisions
The System provides retirement allowances and other
benefits such as disability and death benefits to the non-
safety members employed by the City of Fresno.
The retirement (pension) benefits the member will receive
are based upon a combination of age at retirement, years
of credited service, final average monthly salary, and the
distribution option selected by the participant.
Members' contributions, including interest, are 100
percent vested at all times. Employer contributions do not
become vested until completion of 5 years of credited
service when the member becomes 100 percent vested,
but are not payable until the member attains the age of 55.
Effective January 28, 2008, members may retire between
age 50-55 with an actuarially equivalent service
retirement benefit.
Member Retirement Benefits
Members are eligible for service retirement benefits upon
completion of at least five years of service, upon
termination of service, if they have left contributions and
interest with the System and are at least age 55. Or,
Members may retire upon written application to the
Retirement Board provided that the Member is credited
with five years of continuous service and has attained age
fifty and consents in writing to the early retirement benefit
reduction. Members may also be eligible for service
retirement benefits if they have less than five years of
service with the City of Fresno, but have established
reciprocity with a prior employer and are eligible to retire
from that agency.
The service retirement benefit is calculated pursuant to
the provisions of Section 3-541 of the City of Fresno
Municipal Code. The monthly allowance for a member is
equal to 2 percent of final compensation times each of the
first 25 years of accrued retirement service credit plus 1
percent of final compensation times any years of accrued
retirement service credit in excess of 25 years, multiplied
by the age factor at retirement age.
Final average compensation consists of the highest
average consecutive 36 months of compensation earnable
calculated using the rate of pay in effect at the time of
retirement.
The member may elect an unmodified retirement
allowance, or choose an optional retirement allowance.
The unmodified retirement allowance provides the highest
monthly benefit and a 50% continuance to an eligible
surviving spouse or domestic partner. An eligible
City of Fresno Employees Retirement System l FINANCIAL
Notes to the Basic Financial Statements Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 19
surviving spouse is one married to the member one year
prior to the effective retirement date for members retiring
on or before the effective date (February 10, 2000) of
Ordinance No. 2000-5. For members retiring after the
effective date of Ordinance 2000-5, an eligible surviving
spouse or domestic partner is one married to or registered
with the member on or before the date of retirement.
There are four optional retirement allowances the member
may choose. Each of the optional retirement allowances
requires a reduction in the unmodified retirement
allowance in order to allow the member the ability to
provide certain benefits to a surviving spouse, domestic
partner, or named beneficiary having an insurable interest
in the life of the member.
Deferred Retirement Option Program
(DROP)
DROP is an optional voluntary program that allows a
member to have his or her retirement benefits deposited in
a special account within the System while the member
continues to work in his or her current position. It is a
voluntary method of receiving a distribution of retirement
benefits; it is not an additional retirement benefit.
DROP may not be beneficial to all members. Each
member must determine how the DROP option will affect
the member’s retirement benefits prior to making an
election to enter the DROP.
The member’s retirement benefits are determined as of
the date of entry into the DROP option and accumulate in
the member’s DROP account while the member continues
to work. Members entering DROP, after January 27,
2011 in accordance with ordinances that amended
sections of the City of Fresno Municipal Code, continue
making employee contributions.
Eligibility: Any member who is eligible for a service
retirement and is age 55 (or age 50 for an early retirement
reduced benefit) with a minimum of 5 years of service.
Participation Period: The maximum participation period is
ten years. Because the participation period cannot be
extended, the member must retire at its conclusion;
however, the member may end participation in DROP and
terminate employment with the City and begin retirement
at any time prior to the end of the ten-year period.
DROP Account: A DROP account is set up for each
participant; the monthly amount credited to DROP
accounts include an amount which represents the service
retirement allowance which the member would have
received if the member had retired on the date the
member commenced DROP participation. Interest is also
credited to the DROP account monthly at a rate which is
set annually by the Retirement Board. The rate is based
on the prior five-year moving average of net market
returns of the System's investments in accordance with the
City of Fresno Municipal Code requirements. The Board
is authorized to reduce the annual interest crediting rate
up to 3 percent, if necessary, to maintain DROP’s cost
neutrality.
A DROP account is a nominal, bookkeeping account
established within the System for each DROP participant.
Upon termination of DROP participation and retirement
from the City, a member receives the amounts credited to
their DROP account, including interest. In addition, the
member will also begin receiving his or her monthly
retirement allowance in the amount being credited to their
DROP account. The member may select a method of
withdrawing the money from their DROP account from
the options provided.
City of Fresno Employees Retirement System l FINANCIAL
Notes to the Basic Financial Statements Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 20
DROP Reserves, which represent funds reserved for
DROP benefits accumulated by active members and
retirees, were $171,141,577 and $166,976,234 as of June
30, 2024 and 2023, respectively.
Terminated Member Benefits
If a member terminates before earning five years of
credited service, the member forfeits the right to receive
his or her service retirement benefit and is entitled to
withdraw refundable contributions made, together with
accumulated interest. If the member enters a reciprocal
retirement system within 180 days (6 months) of
terminating employment with the City of Fresno and
elects to leave their accumulated contributions on deposit
with the System, then the member will receive a deferred
retirement allowance when eligible.
Death and Disability Benefits
Death benefits are based upon whether the death occurred
before or after retirement. Disability benefits are based
upon whether the member has at least ten years of
credited service, over or under age 55 and whether the
permanent incapacity is found to be service or non
service-connected.
Cost-of-Living Benefits
Cost-of-living adjustment (COLA) increases for retirees
under the Employees Retirement System are provided for
in the Municipal Code, and are determined by annual
changes in the Consumer Price Index (CPI) for each of
the two immediately preceding calendar years. Retirement
staff research the percentage change in CPI (United States
city average for urban wage earners and clerical workers –
all items) and propose that percent to the Retirement
Board as the COLA to be adopted for the following fiscal
year. This procedure is completed by the end of April
each year for implementation in July. The COLA is
limited to a five percent (5.00%) maximum change per
year and any excess over 5.00 percent is banked for the
retiree for use in a year where the percent of CPI change
is negative.
The Board adopted the annual COLA, pursuant to Section
3-553(b) of 3.3 percent, effective July 1, 2023 for fiscal
year 2024, and 5.0 percent, effective July 1, 2022 for
fiscal year 2023.
2 Summary of Significant
Accounting Policies
Reporting Entity
The Retirement System, with its own governing board, is
an independent governmental entity separate and distinct
from the City of Fresno. The System’s annual financial
statements are included in the City of Fresno Annual
Financial Report as a pension trust fund.
Basis of Accounting
The System’s financial statements are prepared using the
accrual basis of accounting and in accordance with
accounting principles generally accepted in the United
States of America (GAAP), under which revenues are
recognized when earned and deductions are recorded
when the liability is incurred. Employer and employee
contributions are recognized as revenue when due.
Contributions are recorded in the period the related
salaries are earned and become measurable. Investment
income is recognized when it is earned. The net
appreciation in fair value of investments held by the
System is recorded as an increase to investment income
based on the valuation of investments at fiscal year-end,
which includes both realized and unrealized gains and
losses on investments. Retirement benefits and refunds
are recognized when due and payable under the terms of
the plan as defined in Sections 3-534 and 3-538 of the
City of Fresno Municipal Code. Other expenses are
City of Fresno Employees Retirement System l FINANCIAL
Notes to the Basic Financial Statements Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 21
recognized when the corresponding liabilities are
incurred.
Securities lending transactions are accounted for in
accordance with Governmental Accounting Standards
Board (GASB) Statement No. 28, Accounting and
Financial Reporting for Securities Lending Transactions,
which establishes reporting standards for securities
lending transactions. In accordance with GASB Statement
No. 28, cash received as collateral on securities lending
transactions and investments made with that cash are
reported as assets and liabilities, and the results from
these transactions are reported in the Statement of
Fiduciary Net Position. In addition, the costs of securities
lending transactions are reported as an expense in the
Statement of Changes in Fiduciary Net Position.
Investments
The System is authorized by the City of Fresno Municipal
Code and the policies of the Retirement Board to invest in
any form or type of investment deemed prudent by the
Board and does so through its Investment Objectives and
Policy Statement which establishes and outlines the
responsibilities of the various parties that are associated
with managing assets of the Retirement System,
consistent with applicable sections of the Municipal Code,
Federal laws and Article XVI, Section 17(c) of the
Constitution of the State of California which provides that
“the member of the Retirement Board of a public pension
or retirement system shall discharge their duties…with the
care, skill, prudence, and diligence under the
circumstances then prevailing that a prudent person acting
in a like capacity and familiar with these matters would
use in the conduct of an enterprise of a like character and
with like aim.”
System investments are reported at fair value. Fair value
is the amount that the System can reasonably expect to
receive for an investment in a current sale between a
willing buyer and seller, that is, other than in a forced or
liquidation sale. Fair value for investments of publicly
traded securities is stated at fair value based upon closing
sales prices reported on recognized securities exchanges
on the last business day of the period or, for listed
securities having no sales reported and for unlisted
securities, based upon last reported bid prices. All
purchases and sales of securities are accounted for on a
trade date basis and dividends declared but not received
are accrued on the ex-dividend date. Short-term
investments are reported at cost, which approximates fair
value. Securities traded on a national or international
exchange are valued at the last reported sales price at
current exchange rates. Investments in both bonds and
mortgage-backed pass-through certificates are carried at
fair value.
Cost values, as shown, are derived from Master Custodial
Transaction Records. The fair value of real estate
investments is based on independent appraisals.
Investments that do not have an established market are
reported at estimated fair values.
The asset allocation policy set by the Board, in
conjunction with the Fire and Police Retirement Board, is
outlined in the Boards’ Investment Objectives and Policy
Statement. Plan assets are managed with a long-term
objective of achieving and maintaining a fully funded
status for the benefits provided by the System. The table
on the following page provides the Boards’ adopted asset
allocation policy as of June 30, 2024 and 2023.
City of Fresno Employees Retirement System l FINANCIAL
Notes to the Basic Financial Statements Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 22
Asset Allocation Policy
As of June 30, 2024 and 2023
Asset Class FY 2024 FY 2023
Equity
Domestic 22.5%24.0%
International 18.0%20.0%
Private 6.5%5.0%
Rates/Credit
Core Fixed Income 13.0%13.0%
Private Debt/Credit 14.0%12.0%
Real Assets
Core Real Estate 9.0%10.0%
Non-Core Real Estate 6.0%5.0%
Infrastructure 7.0%7.0%
Multi-Asset
Alternative Credit 4.0%4.0%
Short-Term Investments 0.0%0.0%
100%100%
Estimates
The preparation of financial statements in accordance
with generally accepted accounting principles (GAAP)
requires the System administrator to make estimates and
assumptions that affect certain amounts and disclosures.
Accordingly, actual results may differ from those
estimates.
Reclassifications
Certain amounts presented in the prior year's data have
been reclassified to be consistent with the current year's
presentation. Such reclassifications had no effect on
previously reported fiduciary net position.
Implementation of New Accounting
Pronouncements
For the year ended June 30, 2024, the Board adopted and
the System implemented all applicable new GASB
pronouncements. The most recent pronouncement,
effective for fiscal year ended June 30, 2024, is provided
as follows.
GASB Statement No. 100 - Accounting Changes and
Error Corrections, was issued in June 2022. The primary
objective of this statement is to enhance accounting and
financial reporting requirements for accounting changes
and error corrections to provide more understandable,
reliable, relevant, consistent, and comparable information
for making decisions or assessing accountability. The
provisions of this standard are not currently applicable as
the System has had no changes in accounting principles or
error corrections during this period.
City of Fresno Employees Retirement System l FINANCIAL
Notes to the Basic Financial Statements Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 23
3 Contributions
Authority to Collect
The responsibility for both City and employee
contributions to the System is mandated by the City of
Fresno Municipal Code Sections 3-523 and 3-529.
Contributions are made by the members and the employer
at rates recommended by the System's independent
actuary and adopted by the Board.
Employee contribution rates vary according to age and are
designed to provide funding for approximately one third
of retirement benefit basic normal costs and one-half of
the cost-of-living component. All active members are
required to make contributions to the System. The average
member contribution rate as of June 30, 2024 for
2023-2024 (based on the June 30, 2022 valuation) was
8.90 percent of compensation. The average member
contribution rate as of June 30, 2023 for 2022-2023
(based on the June 30, 2021 valuation) was 8.12 percent
of compensation.
The employer contribution rate is designed to provide
funding for the remaining regular retirement and cost-of-
living benefits, as well as all regular disability and
survivors' benefits. The average employer contribution
rate as of June 30, 2024 for 2023-2024 (based on the June
30, 2022 valuation) was 13.38 percent of compensation.
The average employer contribution rate as of June 30,
2023 for 2022-2023 (based on the June 30, 2021
valuation) was 11.97 percent of compensation.
One of the funding objectives of the System is to establish
contribution rates which, over time, will remain level as a
percentage of payroll unless the System benefit provisions
are changed.
Funding Status & Method
Actuarial Funding Policy and Actuarial Cost
Methodology for Funding Purposes.
The Board adopted a Comprehensive Actuarial Funding
Policy on November 7, 2012. For the Employees
Retirement System, that policy included a change in
actuarial cost methodology from the Projected Unit Credit
(PUC) method used for funding purposes to the Entry
Age Normal (EAN) method as the EAN method is used
by a substantial majority of the retirement systems in
California and nationwide. More importantly, the Board
made this change in actuarial cost methodology due to the
adoption of GASB Statements No. 67 and No. 68, which
substantially revised the financial reporting requirements
for governmental pension plans and their sponsors.
Goals of the Actuarial Funding Policy:
• To achieve long-term full funding of the cost of
benefits provided by the System;
• To seek reasonable and equitable allocation of the
cost of benefits over time; and
• To minimize any volatility of the City’s contribution
to the extent reasonably possible, consistent with
other policy goals.
City of Fresno Employees Retirement System l FINANCIAL
Notes to the Basic Financial Statements Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 24
Funding Requirements and Policy
Components
The System’s annual funding requirement is comprised of
a payment of the Normal Cost and a payment on the
Unfunded Actuarial Accrued Liability (UAAL) if
applicable. The Normal Cost and the amount of the
payment on UAAL are determined by three components
of the Board’s funding policy: 1) Actuarial Cost Method –
the techniques used to allocate the cost/liability of
retirement benefits to a given period; 2) Asset Smoothing
Method – the techniques that spread the recognition of
investment gains or losses over a period of time for the
purposes of determining the Actuarial Value of Assets
used in the actuarial valuation process; and 3)
Amortization Policy – the decisions on how, in terms of
duration and pattern, to fund the difference between the
Actuarial Accrued Liability and the Actuarial Value of
Assets in a systematic manner.
Using the Asset Smoothing Method, the investment gains
or losses of each valuation period, as a result of
comparing the actual market return to the expected market
return, are recognized in level amounts over five (5) years
in calculating the Actuarial Value of Assets.
As of June 30, 2024, the System does not have an
Unfunded Actuarial Accrued Liability (UAAL). The
Board’s Amortization Policy sets forth the amortization
procedures for funding any UAAL or amortization and
allocation of any available surplus in the System.
Any new UAAL as a result of actuarial gains or losses
identified in the annual valuation as of June 30 will be
amortized over a period of fifteen (15) years. Any new
UAAL as a result of any change in actuarial assumptions
or methods will be amortized over a period of twenty-five
(25) years. The amortization period for any increase in
UAAL as a result of any amendments to the System will
be amortized over a period of fifteen (15) years, while any
increase in UAAL resulting from a temporary retirement
incentive will be funded over a period not to exceed five
(5) years. UAAL shall be amortized over
“closed” (separate) amortization periods so that the
amortization period for each layer decreases by one year
with each actuarial valuation. UAAL is amortized as a
level percentage of payroll so that the amortization
amount in each year during the amortization period shall
be expected to be a level percentage of covered payroll,
taking into consideration the current assumption for
general payroll increase.
If an overfunding status exists (i.e., the Valuation Value
of Assets exceeds the Unfunded Actuarial Accrued
Liability (UAAL), the System is considered to have a
surplus in the System as of a point in time), such actuarial
surplus and any subsequent surpluses will be amortized
over an “open” amortization period of twenty-five (25)
years. This amortization period of twenty-five years shall
be applicable to the provisions in Fresno Municipal Code
Sections relating to the amortization period used in the
calculation of the Post Retirement Supplemental Benefit
(PRSB). Any prior Unfunded Actuarial Accrued Liability
(UAAL) amortization layers will be considered fully
amortized, and any subsequent UAAL will be amortized
over fifteen (15) years as the first of a new series of
amortization layers.
The System uses a five-year smoothing of market gains
and losses to derive the actuarial value of assets. As of
the fiscal year ended June 30, 2024, the actuarial value of
assets was $1.600 billion with a funded percentage of
109.8 percent on a valuation value of assets.
The progress being made towards meeting the System’s
funding objective through June 30, 2024 is illustrated in
the Schedule of Funding Progress shown in the Actuarial
Section on page 84.
City of Fresno Employees Retirement System l FINANCIAL
Notes to the Basic Financial Statements Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 25
Funding Policy
The City (Employer) currently funds, at a minimum, the
amounts recommended by the actuary and approved by
the Retirement Board. Such amounts are determined
using the individual entry age normal funding method
applied to the projected benefits in determining the
Normal Cost and Actuarial Accrued Liability. The
Normal Cost is determined on an individual basis for each
active member. If there is a positive (Surplus) or negative
(Unfunded) difference between the Valuation of Assets
and the Actuarial Accrued Liability (AAL), the
amortization policy determines the amortization of the
Unfunded Actuarial Accrued Liability (UAAL) on a level
percentage of payroll needed to fund the UAAL or the
amount of available surplus which would be distributable
in any given year. This method produces an employer
contribution rate consisting of amounts for (a) normal cost
and (b) amortization of any unfunded (UAAL) or
prefunded (PAAL) actuarial accrued liability.
These minimum contributions are recognized currently in
the Statement of Changes in Fiduciary Net Position.
Employees' contributions are funded and recognized
currently through payroll deductions in amounts
recommended by the actuary. Costs of administering the
System are charged against System assets.
Total contributions (basic and cost-of-living adjustments
(COLA)) to the System for fiscal year 2024 totaled
$47,454,377. Employees contributed $18,833,018 and the
City made contributions of $28,621,359.
Contributions aggregating $47,454,377 ($28,621,359
employer contributions and $18,833,018 employee
contributions) were made in fiscal year 2024, based on an
actuarial valuation determined as of June 30, 2022, which
became effective for the year ended June 30, 2024.
During fiscal year 2024, the Employer normal
contribution rate was set at 14.15 percent. However, due
to an adjustment for an excess contribution from the prior
year, Employer and System member basic and COLA
contributions represented 13.38 percent and 8.90 percent,
respectively, of the fiscal year 2024 covered payroll.
Contributions aggregating $37,130,453 ($22,236,117
employer contributions and $14,894,336 employee
contributions) were made in fiscal year 2023, based on an
actuarial valuation determined as of June 30, 2021, which
became effective for the year ended June 30, 2023.
During fiscal year 2023, the Employer normal
contribution rate was set at 13.23 percent. Employer and
System member contributions represented 11.97 percent
and 8.12 percent, respectively, of the fiscal year 2023
covered payroll.
City of Fresno Employees Retirement System l FINANCIAL
Notes to the Basic Financial Statements Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 26
Contributions Required and Contributions Made
The employer’s required normal contributions to the System have two components: basic and COLA. For fiscal years 2024
and 2023, the employer’s required normal contributions (basic and COLA) to the System were as follows:
Normal Cost
FY2024 FY2023
Employee Contributions $ 18,833,018 $ 14,894,336
Employer Contribution Rate 14.15 % 13.23 %
Employer Contributions $ 30,151,952 $ 24,636,762
Prior Year Contribution (Surplus)/Shortfall (1,530,593) (2,400,645)
Net Employer Contributions $ 28,621,359 $ 22,236,117
Pensionable Payroll $ 213,008,002 $ 186,218,911
4 Net Pension Liability
The components of the net pension liability of the System are as follows:
Schedules of Changes in the System’s Net Pension Liability (GASB 67)
As of June 30, 2024 and 2023
(In Thousands)
As of As of
June 30, 2024 June 30, 2023
Total Pension Liability $1,674,885 $1,566,984
Plan Fiduciary Net Position ($1,815,105)($1,683,313)
Net Pension Liability/(Surplus)($140,220)($116,329)
Plan Fiduciary Net Position as a percentage of the total pension liability 108.37%107.42%
The net pension liability was measured as of June 30, 2024 and 2023, and determined based upon the total pension liability
(on a GASB 67 basis) from actuarial valuations as of June 30, 2024 and 2023, respectively.
City of Fresno Employees Retirement System l FINANCIAL
Notes to the Basic Financial Statements Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 27
Actuarial Assumptions
Key Methods and Assumptions Used in Valuation
of Total Pension Liability
The total pension liability as of June 30, 2024 was determined by an actuarial valuation as of June 30, 2024, using the
following actuarial assumptions, applied to all periods included in the measurement:
Valuation Date: June 30, 20241
Actuarial Experience Study: 3 Year Period Ending June 30, 2021
Actuarial Cost Method: Entry Age Normal Actuarial Cost Method
Normal Cost and Actuarial Accrued Liability are calculated on an individual basis and are
based on costs allocated as a level percentage of compensation.
Actuarial Assumptions
Inflation 2.50%
Salary Increases 3.75% to 11.50%, varying by service, including inflation
Discount Rate 6.75%, net of pension plan investment expense, including inflation
Other Assumptions See June 30, 2024 funding valuation for the service retirement rates after they have been
adjusted to treat DROP participation as service retirement.
Mortality Rates Healthy Members • Pub-2010 General Healthy Retiree Amount-Weighted Mortality Table
(separate tables for males and females) with rates increased by 5%, projected generationally
with the two-dimensional mortality improvement scale MP-2021.
Beneficiaries not currently in Pay Status • Pub-2010 General Healthy Retiree Amount-
Weighted Mortality Table (separate tables for males and females) with rates increased by 5%,
projected generationally with the two-dimensional mortality improvement scale MP-2021.
Beneficiaries in Pay Status • Pub-2010 General Contingent Survivor Amount-Weighted
Mortality Table (separate tables for males and females) with rates increased by 5%, projected
generationally with the two-dimensional mortality improvement scale MP-2021.
Disabled Members • Pub-2010 Non-Safety Disabled Retiree Amount-Weighted Mortality
Table (separate tables for males and females with rates decreased by 5%, projected
generationally with the two-dimensional mortality improvement scale MP-2021.
City of Fresno Employees Retirement System l FINANCIAL
Notes to the Basic Financial Statements Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 28
1Actuarially determined contribution rates are calculated as of June 30, two years prior to the end of the fiscal year in which contributions are reported. As
such, the actuarial valuations dated June 30, 2024 and 2023, will impact the contribution rates for the fiscal years ended June 30, 2026 and 2025.
The valuation interest rate is 6.75 percent; total salary
scale increases range between 3.75% to 11.50% (include
2.50 percent for inflation plus 0.50 percent across the
board salary increase plus merit and promotion increases
based on completed years of service) were based on the
June 30, 2021 Experience Analysis and Economic
Assumptions Reports.
Actuarial valuations of an ongoing plan involve estimates
of the fair value of reported amounts and assumptions
about the probability of occurrence of events far into the
future. Examples include assumptions about future
employment, mortality, inflation and investment returns.
Amounts determined regarding the funded status of the
plan and the annual required contributions of the
employer are subject to continual revisions as actual
results are compared with past expectations and new
estimates are made about the future.
GASB Statement No. 67 (GASB 67) addresses
accounting and financial reporting requirements for
pension plans and redefines pension liability and expense
for financial reporting purposes, and does not apply to
contribution amounts for pension funding purposes.
When measuring pension liability under GASB Statement
No. 67, the actuary uses the same actuarial cost method
(Entry Age method) and the same type of discount rate
(expected return on assets) as the System uses for
funding. Note that, unrelated to the investment return
assumption, the new rules use a version of the Entry Age
method where the Total Pension Liability (TPL) for
financial reporting purposes must be fully accrued by the
time a member either enters DROP or is expected to elect
the DROP. This is in contrast to the version of the Entry
Age method used for funding, where the Actuarial
Accrued Liability (AAL) does not have to be fully
accrued until members retire from employment after
participation in the DROP. Under GASB Statement No.
67, active members who are expected to enroll in the
DROP in the future would report a Service Cost that is
higher than the Normal Cost used for funding, while
members already in the DROP would report no Service
Cost even though their Normal Cost continues to accrue.
Long-Term Expected Real Rate of Return
The long-term expected rate of return on the System’s
investments was determined using a building-block
method in which expected future real rates of return
(expected returns, net of pension plan investment expense
and net of inflation) are developed for each major asset
class. This information is combined to produce the long-
term expected rate of return by weighting the expected
future real rates of return by the target asset allocation
percentage and by adding expected inflation and
deducting expected investment expenses and a risk
margin. The target allocation and projected arithmetic real
rates of return for each major asset class, after deducting
inflation, but before deducting investment expenses, used
in the derivation of the long-term expected investment
rate of return assumption are summarized in the following
table.
The actual asset class target allocations from the Board's
prior adopted Asset Allocation Target Policy were utilized
in the Analysis of Actuarial Experience during the period
July 1, 2018 through June 30, 2021 and for the Review of
Economic Actuarial Assumptions used for the June 30,
2024 and June 30, June 30, 2023 Actuarial Valuations.
City of Fresno Employees Retirement System l FINANCIAL
Notes to the Basic Financial Statements Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 29
Asset Class/Target Allocation/Long-term Expected
Real Rate of Return Table
As of June 30, 2024 As of June 30, 2023
Asset Class
Target
Asset
Allocation
Weighted Average
Long-Term Expected
Real Rate of Return*
(Arithmetic)
Target
Asset
Allocation
Weighted Average
Long-Term Expected
Real Rate of Return*
(Arithmetic)
Large Cap U.S. Equity 18.00%5.40%18.00%5.40%
Small Cap U.S. Equity 3.00%6.17%3.00%6.17%
Developed International Equity 13.00%6.13%13.00%6.13%
Emerging Market Equity 5.00%8.17%5.00%8.17%
Private Equity 8.00%10.83%8.00%10.83%
Core Bonds 12.00%0.39%12.00%0.39%
Private Debt/Direct Lending 14.00%5.93%14.00%5.93%
Real Estate 15.00%4.59%15.00%4.59%
Private Credit - Credit Opportunities 2.50%7.18%2.50%7.18%
China Equity 1.25%9.53%1.25%9.53%
Hedge Fund - Macro 1.25%2.72%1.25%2.72%
Private Real Assets - Infrastructure/Land 7.00%6.19%7.00%6.19%
Total 100.0%100.0%
* Based on the results of an experience study for the period from July 1, 2018 through June 30, 2021.
Mortality Rates
Mortality rates used in the latest actuarial valuation are
based on the Pub-2010 mortality tables. For healthy
members and beneficiaries, the Pub-2010 General Healthy
Retiree Amount-Weighted Mortality Table (separate
tables for males and females) times 105% is used,
projected generationally with the two-dimensional
mortality improvement scale MP-2021. For members that
are disabled, the Pub-2010 Non-Safety Disabled Retiree
Amount-Weighted Mortality Table (separate tables for
males and females) is used, projected generationally with
the two-dimensional mortality improvement scale
MP-2021.
Discount Rate
The discount rate used to measure the total pension
liability was 6.75 percent as of June 30, 2024 and 2023.
The projection of cash flows used to determine the
discount rate assumed plan member contributions will be
made at the current contribution rate and that employer
contributions will be made at rates equal to the actuarially
determined contribution rates. For this purpose, only
employer contributions that are intended to fund benefits
for current plan members and their beneficiaries are
included. Projected employer contributions that are
intended to fund the service costs for future plan members
and their beneficiaries, as well as projected contributions
from future plan members, are not included. Based on
those assumptions, the pension plan's fiduciary net
position was projected to be available to make all
projected future benefit payments for current plan
members. Therefore, the long-term expected rate of return
on the System’s investments was applied to all periods of
projected benefit payments to determine the total pension
liability as of both June 30, 2024 and June 30, 2023.
City of Fresno Employees Retirement System l FINANCIAL
Notes to the Basic Financial Statements Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 30
The table below presents the net pension liability of the Retirement System calculated using the discount rate of 6.75 percent,
as of June 30, 2024 and 2023, as well as what the System’s net pension liability would be if it were calculated using a
discount rate that is 1.00 percent lower or 1.00 percent higher than the current rate:
Sensitivity of Net Pension Liability to Changes in the Discount Rate
As of June 30, 2024 and 2023 (In Thousands)
1%Current 1%
Decrease Discount Rate Increase
Net Pension Liability/(Surplus)5.75%6.75%7.75%
June 30, 2024 $59,686 ($140,220)($303,754)
1%Current 1%
Decrease Discount Rate Increase
Net Pension Liability/(Surplus)5.75%6.75%7.75%
June 30, 2023 $67,160 ($116,329)($266,738)
5 Net Position Restricted for
Pension Benefits
Net position restricted for pension benefits is segregated
into Active Members Reserves (members’ accumulated
contributions) and reserves established by the Board for
various benefit payments.
Reserves are established by the System from member and
employer contributions and the accumulation of
investment income after satisfying investment and
administrative expenses. Note: The reserves do not
represent the present value of assets needed, as
determined by actuarial valuation, to satisfy retirements
and other benefits as they become due.
The System’s major reserves are as follows:
ACTIVE MEMBER (EMPLOYEE) RESERVES
represent the total accumulated member contributions.
Additions include member contributions and investment
earnings; deductions include refunds of member
contributions and transfers to Employer Advance/Retired
Reserves.
EMPLOYER ADVANCE/RETIRED RESERVES
represent the total accumulated employer contributions
for future retirement payments to current active and
vested terminated members and the total accumulated
transfers from Active Member Reserves and investment
earnings, less payments to retirees and transfers to the
DROP Reserves. Additions include contributions from the
employer, transfers from Active Member Reserves and
investment earnings; deductions include payments to
retirees and transfers to the DROP Reserves.
DEFERRED RETIREMENT OPTION PROGRAM
(DROP) RESERVES represent funds reserved for
Deferred Retirement Option Benefits accumulated by
members and retirees.
City of Fresno Employees Retirement System l FINANCIAL
Notes to the Basic Financial Statements Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 31
POST RETIREMENT SUPPLEMENTAL BENEFIT
(PRSB) RESERVES represent surplus earnings that have
been allocated but not distributed to eligible retirees in
accordance with the City of Fresno Municipal Code
Section 3-567 “Post Retirement Supplemental Benefit.”
The PRSB Reserve Account was exhausted at the end of
calendar year 2013.
CITY SURPLUS RESERVES represent surplus earnings
that have been allocated but not used as a reduction to
offset or eliminate the City’s pension contributions in
accordance with the conditions and requirements of
Municipal Code Section 3-567 “Post Retirement
Supplemental Benefit.” The City Surplus Reserves
account balance was negative for both the fiscal year
2024, and the fiscal year 2023 due to the differences
between the actual and estimated surplus allocation for
the City for offsetting the City’s contributions for those
years.
Interest is allocated at an actuarially determined interest
rate as approved by the Board and is credited monthly to
the Active Member Reserves and the Employer Advance/
Retired Reserves. Active members in the Deferred
Retirement Option Program accrue interest on their
accumulated DROP accounts monthly at an interest rate
annually adopted by the Board.
The amount of reserves as of June 30, 2024 and 2023,
consisted of the following:
Reserves Table as of June 30, 2024 and 2023
(In Thousands)
2024 2023
Employer Advance/Retired Reserves $ 1,488,300 $ 1,376,856
Active Member (Employee) Reserves 155,954 139,691
DROP Reserves 171,142 166,976
PRSB Reserves — —
City Surplus Reserves (291) (210)
Net Position Restricted for Pension Benefits $ 1,815,105 $ 1,683,313
City of Fresno Employees Retirement System l FINANCIAL
Notes to the Basic Financial Statements Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 32
6 Fair Value Measurements
In accordance with GASB Statement No. 72, Fair Value
Measurement and Application, which addresses
accounting and financial reporting issues related to fair
value measurements and disclosures, the System’s
investments are measured and reported within the fair
value hierarchy established by generally accepted
accounting principles. The fair value hierarchy, which has
three levels, is based on the valuation inputs used to
measure an asset’s fair value and gives the highest priority
to unadjusted quoted prices in active markets for identical
assets or liabilities (Level 1 measurements) and the lowest
priority to unobservable inputs (Level 3 measurements).
The three levels of the fair value hierarchy are as follows:
Level 1: Inputs are based on quoted prices for identical
assets or liabilities in an active market that the System can
access. An active market for the asset or liability is one in
which transactions for the asset or liability occur with
sufficient frequency and volume to provide pricing
information on an ongoing basis. A quoted price in an
active market usually provides the most reliable evidence
of fair value and is generally used without adjustment if
available. This classification includes public equities with
observable market prices.
Level 2: Inputs that are observable either directly or
indirectly but are not Level 1 inputs. Level 2 inputs
include quoted prices for similar instruments, broker
quotes, or observable inputs that directly impact value
such as interest rates, prepayment speeds, and credit risk.
Pricing inputs, including broker quotes, are generally
those other than exchange quoted prices in active markets,
and fair values are determined through the use of models
or other valuation methodologies. For investments in
funds where there is an ability to redeem such investments
at the Net Asset Value (NAV) per share (or its equivalent)
at the measurement date or in the near term, the fair value
of the investment is generally categorized as Level 2.
Level 3: Inputs that are unobservable. Level 3 inputs are
generally used in situations where there is little, if any,
market activity for the investment. These inputs into the
determination of fair value require significant
management judgment or estimation. Due to the inherent
uncertainty of these estimates, these values may differ
significantly from the values that would have been used
had a ready market for these investments existed.
Investments that are included in this category generally
include public entities and other fixed income securities
where there is an inability to redeem such investments at
the NAV per share (or its equivalent) at the measurement
date or in the near term.
The tables on the following pages show the fair value
leveling of the System’s investments as of June 30, 2024
and 2023.
City of Fresno Employees Retirement System l FINANCIAL
Notes to the Basic Financial Statements Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 33
Fair Value Measurements Using
Investment Type June 30, 2024
Quoted Prices in
Active Markets
for Identical Assets
(Level 1)
Significant Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Investments by Fair Value Level
Debt Securities
Asset Backed Securities $ 24,297,878 $ — $ 24,297,878 $ —
Commercial Mortgage-Backed 13,369,970 — 13,369,970 —
Corporate Bonds 66,541,897 — 66,541,897 —
Government Agencies 3,268,200 — 3,268,200 —
Government Bonds 17,005,419 — 17,005,419 —
Government Mortgage-Backed Securities 72,943,090 — 72,943,090 —
Gov't-Issued Commercial Mortgage-Backed 282,638 — 282,638 —
Index Linked Government Bonds 555,234 — 555,234 —
Municipal/Provincial Bonds 1,573,662 — 1,573,662 —
Non-Government Backed CMOs 1,291,602 — 1,291,602 —
Total Debt Securities 201,129,590 — 201,129,590 —
Equity Securities
Consumer Discretionary 27,017,723 27,017,723 — —
Consumer Staples 12,144,248 12,144,248 — —
Energy 7,571,965 7,571,965 — —
Financials 42,729,345 42,729,345 — —
Health Care 14,697,562 14,697,562 — —
Industrials 36,631,872 36,631,872 — —
Information Technology 43,052,238 43,052,238 — —
Materials 11,012,331 11,012,324 — 7
Miscellaneous — — — —
Real Estate 194,236 194,236 — —
Telecommunication Services 16,807,061 16,807,061 — —
Utilities 698,808 698,808 — —
Total Equity Securities 212,557,389 212,557,382 — 7
Securities Lending 24,737,950 24,737,950 — —
Short-Term Investments 6,714,859 6,714,859 — —
Private Real Estate Holdings 3,500,000 — 3,500,000 —
Total Investments by Fair Value Level $ 448,639,788
Investments Measured at the Net Asset Value (NAV)
Commingled Fund - Equities $ 584,440,013
Commingled Fund - Real Estate 152,848,841
Commingled Fund - Infrastructure 104,447,327
Private Real Estate Funds 121,858,546
Private Debt/Private Credit 272,396,817
Private Equity 131,684,368
Total Investments Measured at NAV 1,367,675,912
Total Investments Measured at Fair Value and NAV $ 1,816,315,700
Investment Derivative Instruments*
Debt Securities - Futures $ 22,287,031 $ 22,287,031 $ — $ —
Rights/Warrants 807 807 — —
Total Investment Derivative Instruments $ 22,287,838 $ 22,287,838 $ — $ —
* Short-term derivative instruments included on page 47 are excluded here.
City of Fresno Employees Retirement System l FINANCIAL
Notes to the Basic Financial Statements Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 34
Fair Value Measurements Using
Investment Type June 30, 2023
Quoted Prices in
Active Markets
for Identical Assets
(Level 1)
Significant Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Investments by Fair Value Level
Debt Securities
Asset Backed Securities $ 26,791,517 $ — $ 26,746,578 $ 44,939
Commercial Mortgage-Backed 10,319,794 — 10,315,348 4,446
Corporate Bonds 67,568,060 — 67,568,060 —
Government Agencies 3,174,392 — 3,174,392 —
Government Bonds 13,092,970 — 13,092,970 —
Government Mortgage-Backed Securities 68,186,238 — 68,186,238 —
Gov't-Issued Commercial Mortgage-Backed 543,241 — 543,241 —
Municipal/Provincial Bonds 2,188,011 — 2,188,011 —
Non-Government Backed CMOs 2,209,743 — 2,209,743 —
Total Debt Securities 194,073,966 — 194,024,581 49,385
Equity Securities
Consumer Discretionary 36,440,667 36,440,667 — —
Consumer Staples 18,479,417 18,479,417 — —
Energy 5,235,252 5,235,252 — —
Financials 49,234,441 49,234,441 — —
Health Care 14,405,548 14,405,548 — —
Industrials 43,595,718 43,595,718 — —
Information Technology 43,133,414 43,133,414 — —
Materials 14,274,020 14,274,013 — 7
Miscellaneous 3 3 — —
Real Estate 387,595 387,595 — —
Telecommunication Services 11,417,815 11,417,815 — —
Utilities 1,611,474 1,611,474 — —
Total Equity Securities 238,215,364 238,215,357 —7
Securities Lending 22,259,394 22,259,394 — —
Short-Term Investments 8,678,818 8,678,818 — —
Private Real Estate Holdings 3,500,000 — 3,500,000 —
Total Investments by Fair Value Level $ 466,727,542
Investments Measured at the Net Asset Value (NAV)
Commingled Fund - Equities $ 554,935,787
Commingled Fund - Real Estate 171,117,868
Commingled Fund - Infrastructure 97,759,663
Private Real Estate Funds 81,946,973
Private Debt/Private Credit 223,775,434
Private Equity 101,515,534
Total Investments Measured at NAV 1,231,051,259
Total Investments Measured at Fair Value and NAV $ 1,697,778,801
Investment Derivative Instruments*
Debt Securities - Futures $ 9,038,418 $ 9,038,418 $ — $ —
Rights/Warrants 3 3 — —
Total Investment Derivative Instruments $ 9,038,421 $ 9,038,421 $ — $ —
* Short-term derivative instruments included on page 47 are excluded here.
City of Fresno Employees Retirement System l FINANCIAL
Notes to the Basic Financial Statements Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 35
Commingled equity and real estate funds are valued based
on NAV reported by the investment manager, which are
generally calculated based on the last reported sale price
of the underlying assets held by such funds. Direct
lending funds are typically structured as limited
partnerships and limited liability companies. Since there
is no readily available market for these investments in
limited partnerships and limited liability companies, such
investments are stated at fair value as estimated in an
inactive market. These investments include securities of
companies that may not be immediately liquid, such as
private debt securities, real estate or other assets. The
valuations of these investments are based upon values
provided by the investment managers, based on the
guidelines established with the investment managers and
in consideration of other factors related to the System’s
interests in these investments.
Investments that are measured at fair value using the net
asset value per share (NAV or its equivalent) as a
practical expedient are not classified in the fair value
hierarchy. In these instances where inputs used to measure
fair value fall into different levels in the fair value
hierarchy, fair value measurements in their entirety are
categorized based on the lowest level input that is
significant to the valuation. The System’s assessment of
the significance of particular inputs to these fair value
measurements requires judgment and considers factors
specific to each asset or liability.
Equity and derivative securities classified in Level 1 are
valued using prices quoted in active markets for those
securities. Equity and debt securities classified in Level 2
and Level 3 are using either a bid evaluation or a matrix
pricing technique. Bid evaluations may include market
quotations, observable market based inputs and
unobservable inputs (i.e., extrapolated data, proprietary
models, and indicative quotes). Matrix pricing is used to
value securities based on the securities relationship to
benchmark quoted prices.
Investment derivative instruments classified as Levels 2
and 3 are valued using market approaches that consider,
as applicable, benchmark interest rates or foreign
exchange rates.
Real estate assets classified in Level 2 are the System’s
private real estate investments which are valued using
independent external appraisers. The System’s policy is to
perform independent appraisals of the property every
three years. The appraisals include a complete property
and market inspection and analysis by designated
Members of the Appraisal Institute (MAI). The appraisals
are performed using generally accepted valuation
approaches applicable to the property type. Calculations
used in the System’s independent appraisals are generally
based on a discounted cash flow analysis.
Investments in Entities That Calculate Net
Asset Value Per Share
The fair value measurement of investments in
commingled equity, real estate and direct lending funds
are valued based on the investments’ net asset value
(NAV) per share (or its equivalent) reported by the
investment manager, which are generally calculated based
on the last reported sale price of the underlying assets
held by such funds. These include funds that are
structured as limited partnerships and limited liability
companies.
Since there is no readily available market for investments
in limited partnerships and limited liability companies,
such investments are stated at fair value as estimated in an
inactive market. These investments include securities of
companies that may not be immediately liquid, such as
private debt securities and real estate or other assets.
City of Fresno Employees Retirement System l FINANCIAL
Notes to the Basic Financial Statements Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 36
The valuations of these investments are based upon values
provided by the investment managers, and in
consideration of other factors, including guidelines
established with those investment managers, related to the
System’s interests in these investments. Such fair value
measurements are shown in the tables below as of June
30, 2024 and 2023.
City Of Fresno Employees Retirement System
Investments Measured at the NAV
As of June 30, 2024
Investment Type Fair Value
Unfunded
Commitments
Redemption
Frequency
(If Currently
Eligible)
Redemption
Notice
Period
Commingled Fund - Equities $ 584,440,013 $ — Daily None
Commingled Fund - Real Estate 152,848,841 — Quarterly 45-90 Days
Commingled Fund - Infrastructure 104,447,327 — Not Eligible N/A
Private Real Estate Funds 121,858,546 64,155,455 Not Eligible N/A
Private Debt/Private Credit 272,396,817 116,905,373 Not Eligible N/A
Private Equity 131,684,368 103,679,340 Not Eligible N/A
Total investments measured at the NAV $ 1,367,675,912 $ 284,740,168
City Of Fresno Employees Retirement System
Investments Measured at the NAV
As of June 30, 2023
Investment Type Fair Value
Unfunded
Commitments
Redemption
Frequency
(If Currently
Eligible)
Redemption
Notice
Period
Commingled Fund - Equities $ 554,935,787 $ — Daily None
Commingled Fund - Real Estate 171,117,868 — Quarterly 45-90 Days
Commingled Fund - Infrastructure 97,759,663 — Not Eligible N/A
Private Real Estate Funds 81,946,973 58,330,950 Not Eligible N/A
Private Debt/Private Credit 223,775,434 137,142,985 Not Eligible N/A
Private Equity 101,515,534 56,712,183 Not Eligible N/A
Total investments measured at the NAV $ 1,231,051,259 $ 252,186,118
On the following page is an explanation of the investment types listed above.
City of Fresno Employees Retirement System l FINANCIAL
Notes to the Basic Financial Statements Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 37
The investment types listed in the tables on the preceding
page were measured at the NAV as follows.
(1) Commingled equity funds are highly
liquid and can be redeemed within short-term periods of
time. The System’s investments of this type consist of
institutional investment funds - one international
ACWIexUS equity fund that is diversified across
developed and emerging market countries and sectors and
two domestic large cap equity index funds (S&P 500
Index and Russell 1000 Index). The fair value of these
investment types has been determined using the NAV per
share of the investments.
(2) Commingled real estate fund: The
System’s commingled real estate funds are a core
investment strategy designed to deliver a relatively high
level of current income combined with moderate
appreciation potential. It is comprised of institutional
quality office, retail, residential and industrial investments
in major markets throughout the U.S. The redemption
frequency of the real estate fund is quarterly, if liquidity is
available, with a notice of redemption 45 days before the
end of a quarter.
(3) Private real estate funds: The System’s
private real estate funds are designed to act as a diversifier
and alpha generator to the core real estate portfolio.
Investments are made in middle-market assets across
various domestic and international regions and sectors
such as industrial, multifamily, office, and retail. The
strategies focus on identifying investments with pricing
dislocations that can be renovated, repurposed, and exited
at opportunistic levels. The investment period is
generally 3-5 years with a lifespan of 10-12 years.
(4) Private Debt/Private Credit - direct
lending funds: The System’s direct lending funds are each
invested through a master-feeder structure, on a leveraged
basis primarily in senior secured loans of private U.S.
lower-middle-market companies. Strategies employ a
capital preservation focus and structured investments with
strong covenant provisions to reduce associated risks,
underwriting multiple cushions to provide downside
protections. The investment period is generally 3-5 years
with reinvestment of committed capital.
(5) Commingled infrastructure funds: The
System’s infrastructure funds invest in core assets that
generate long-term stable cash yields, have modest price
appreciation, and provide inflation protection. Types of
assets include energy (water, wind, and solar, etc.),
transportation (toll roads and bridges, airports, and
seaports, etc.), and social (hospitals, prisons, and schools,
etc.). Investments are located domestically as well as in
the Organization for Economic Co-operation and
Development (OECD) countries internationally. Each
fund has lockup periods of 4 years and, after that initial
period, redemptions can be requested on a quarterly basis,
if liquidity is available.
(6) Private Equity Funds: The System’s
private equity fund represents investments in privately
owned companies that are not listed on public market
exchanges. They are typically accessed through
partnerships and managed by external general partners.
The System’s one private equity fund is composed of
primaries, secondaries, and co-investments, split between
North America and international markets. Most
investments are sourced from the small-to-mid market
investment universe.
City of Fresno Employees Retirement System l FINANCIAL
Notes to the Basic Financial Statements Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 38
7 Deposits and Investments
The System’s investment guidelines reflect the duties imposed by an investment standard known as the “prudent expert rule.”
The prudent expert rule establishes a standard for all fiduciaries which includes anyone who has discretionary authority with
respect to the System’s investments.
Northern Trust serves as custodian of the System’s investments. The System’s asset classes include U.S. Equity,
International Equity, Private Equity, Fixed Income, Private Debt/Credit, Real Assets and Multi-Assets. Any class may be
held in direct form, pooled form, or both. The System has twenty-eight external investment managers, managing thirty-five
individual portfolios. Investments as of June 30, 2024 and 2023, consist of the following:
Investments at Fair Value as of June 30, 2024 and 2023
(In Thousands)
2024 2023
Investments at Fair Value
Domestic Equity $ 441,275 $ 426,767
International Equities 354,893 365,577
Private Equity 131,684 101,516
Fixed Income 224,247 203,919
Private Debt/Credit 243,293 208,301
Real Assets 382,655 354,325
Multi-Assets 29,104 15,475
Short-Term Investments 6,715 8,678
Total Investments at Fair Value $ 1,813,866 $ 1,684,558
City of Fresno Employees Retirement System l FINANCIAL
Notes to the Basic Financial Statements Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 39
The Board, through its Investment Objectives and Policy Statement, provides guidelines for investments and established the
following target allocations with a minimum and maximum range for each of the asset classes:
Asset Class Minimum Target and Maximum Allocations
FY 2024 FY 2023
Asset Class Minimum Target Maximum Minimum Target Maximum
Equity
Domestic 15.0%22.5%36.0%15.0%24.0%36.0%
International 10.0%18.0%25.0%10.0%20.0%25.0%
Private 0.0%6.5%10.0%0.0%5.0%10.0%
Rates/Credit
Core Fixed Income 5.0%13.0%20.0%5.0%13.0%20.0%
High Yield Fixed Income 0.0%0.0%0.0%0.0%0.0%5.0%
Private Debt/Credit 5.0%14.0%20.0%5.0%12.0%20.0%
Real Assets
Core Real Estate 5.0%9.0%15.0%5.0%10.0%15.0%
Non-Core Real Estate 2.0%6.0%8.0%2.0%5.0%8.0%
Infrastructure 2.0%7.0%10.0%2.0%7.0%10.0%
Multi-Asset
Alternative Credit 0.0%4.0%7.0%0.0%4.0%7.0%
Short-Term Investments 0.0%0.0%0.0%0.0%0.0%0.0%
100%100%
Allowable securities must meet the reporting
requirements of the Securities and Exchange Commission
and must meet a “prudent expert” standard for investing.
In no case may the System have five percent (5%) or
more of System net position invested in any one
organization.
The Board’s investment policies and guidelines permit
investment in numerous specified asset classes to take
advantage of the non-correlated economic behavior of
diverse asset classes. The result is a well-diversified
portfolio.
Custodial Credit Risk
Custodial credit risk for investments is the risk that, in the
event of the failure of the counterparty to a transaction,
the System will not be able to recover the value of its
investment or collateral securities that are in the
possession of another party. The Retirement System’s
investment securities are not exposed to custodial credit
risk since all securities are registered in the System’s
name and held by the System’s custodial bank.
City of Fresno Employees Retirement System l FINANCIAL
Notes to the Basic Financial Statements Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 40
Custodial credit risk for deposits is the risk that, in the
event of the failure of the depository financial institution,
the System will not be able to recover its deposits or will
not be able to recover collateral securities that are in the
possession of an outside party. Any cash associated with
the System’s investment portfolios not invested at the end
of a day is temporarily swept overnight to the Northern
Trust Collective Short-Term Investment Fund.
That portion of the System’s cash held by the City in a
Trust account as part of the City’s cash investment pool
totaled $128,510 and $139,674 at June 30, 2024 and
2023, respectively. Accordingly, the System’s
investments in the pool are held in the name of the City
and are not specifically identifiable.
Disclosure of the legal and contractual provisions of the
City’s investment policy and carrying amounts by type of
investments may be found in the notes to the City’s
separate Annual Comprehensive Financial Report for the
fiscal year ended June 30, 2024.
Credit and Interest Rate Risk
Credit risk associated with the System’s debt securities is
identified by their ratings in the table below. Interest rate
risk is the risk that changes in market interest rates will
adversely affect the fair value of an investment. The
System has no general policy on credit and interest rate
risk. The System limits its investments in below
investment grade bonds and monitors the interest rate risk
inherent in its portfolio by measuring the duration of its
portfolio.
The average duration of the System’s debt portfolios in
years is also listed in the following table:
2024 2023
Type of Investment Fair Value
Credit
Quality Duration Fair Value
Credit
Quality Duration
Asset Backed Securities $ 24,297,878 AA+0.78 $ 26,791,517 AA+0.65
Commercial Mortgage-Backed 13,369,970 AAA 4.40 10,319,794 AAA 5.39
Corporate Bonds 66,541,897 BBB+5.04 67,568,060 BBB 4.89
Fixed Income Derivatives - Futures 22,287,031 —7.28 9,038,418 —7.82
Non-Government Backed CMOs 1,291,602 AA 2.04 2,209,743 BBB+1.45
Preferred Stock 829,989 BB+— 806,544 BB+—
Government Agencies 3,268,200 BB-6.32 3,174,392 BB+6.44
Government Bonds 17,005,419 AAA 12.75 13,092,970 AAA 10.20
Gov't Issued Commercial Mortgage-Backed Securities 282,638 AAA 3.96 543,241 AAA 3.60
Government Mortgage-Backed Securities 72,943,090 AAA 7.25 68,186,238 AAA 7.48
Municipal/Provincial Bonds 1,573,662 A+8.10 2,188,011 AA-8.66
Index Linked Government Bonds 555,234 AAA 14.62 — ——
Total Credit Risk Fixed Income $ 224,246,610 $ 203,918,928
City of Fresno Employees Retirement System l FINANCIAL
Notes to the Basic Financial Statements Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 41
Per Section 3.5.f.i. of the System’s Investment Policy
Statement, no more than 15 percent of an investment
manager’s fixed income portfolio may be invested in
below investment grade rated securities (BB or B rated
bonds). Therefore, at least 85 percent of the manager’s
fixed income portfolio must be invested in investment
grade securities. Intermediate Bond portfolios shall
maintain an average credit quality of A+ or better.
High yield fixed income portfolios, in accordance with
Section 3.5.f.ii. of the System’s Investment Policy
Statement, shall maintain an average credit quality rating
equal to or higher than that of the Barclays US Corporate
High Yield Index. Based on the Barclays US Corporate
High Yield Index, a high yield manager’s portfolio shall
have a constraint of the benchmark weight plus five
percent (5%) in bonds rated Caa1/CCC+ or lower with
non-rated bonds being limited to five percent (5%) of the
portfolio with both limits subject to maintaining the
average portfolio credit quality requirement of the
Barclays US Corporate High Yield index. No more than
25 percent of a high yield manager’s portfolio may be
invested in foreign securities; within this limit, a manager
may allocate up to 20 percent in emerging market
government securities including both non-U.S. dollar
denominated securities and U.S. dollar denominated
Yankee securities and up to 15 percent of the portfolio
may be invested in non-U.S. dollar denominated
securities.
High yield bond portfolios may hold up to the benchmark
weight plus five percent (5%) of assets in Rule 144A
bond issues with or without registration rights. No more
than 10 percent of the high yield manager’s portfolio may
be invested in convertibles or preferreds, and no more
than 20 percent may be invested in securitized bank debt.
No single security and/or issuer can represent more than
five percent (5%) of the fair value of a portfolio at the
time of purchase, and no single industry can represent
more than 25 percent of the fair value of the account at
the time of purchase.
Firms that manage fixed income portfolios will
continually monitor the risk associated with their fixed
income investments. They will be expected to report, as a
component of their quarterly report, a risk/reward analysis
of the management decisions relative to their benchmarks.
Statistics that relate performance variance to effective
duration decisions will be included in each quarterly
report.
Concentration Risk
The investment portfolio as of June 30, 2024 and 2023,
contained no concentration of investments in any one
entity (other than those issued or guaranteed by the U.S.
Government) that represented five percent (5%) or more
of the total investment portfolio or fiduciary net position.
Foreign Currency Risk
Foreign Currency Risk is the risk that changes in foreign
exchange rates will adversely affect the fair value of an
investment or deposit. The System has no general
investment policy with respect to foreign currency risk.
The System’s investment policy guidelines allow
international developed and emerging equity managers to
hedge their currency risks in foreign countries through the
purchase of derivatives. Used as a defensive measure and
in an effort to control the risks associated with
international portfolios, international equity investment
managers are permitted to invest in forward currency
contracts, swaps, currency futures, and exchanged-traded
index futures that represent broad equity exposure to
countries represented in their respective benchmark index.
The positions shown on the following page represent the
System’s exposure to foreign currency risk as of June 30,
2024 and 2023.
City of Fresno Employees Retirement System l FINANCIAL
Notes to the Basic Financial Statements Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 42
Foreign Currency Risk Exposure
As of June 30, 2024
Base Currency Country
Equities /
Fixed Income
Futures &
Forwards
Swaps &
Rights /
Warrants
Cash & Cash
Equivalents Total
AUD Australian Dollar Australia $ 1,263,997 $ — $ — $ — $ 1,263,997
BRL Brazilian Real Brazil 1,192,777 — 805 2,470 1,196,052
CAD Canadian Dollar Canada 13,205,952 — — — 13,205,952
CHF Swiss Franc Switzerland 4,699,408 — — — 4,699,408
CNY Chinese Yuan Renminbi China 1,407,006 — — — 1,407,006
DKK Danish Krone Denmark 7,154,739 — — — 7,154,739
EUR Euro Europe 52,845,071 — — (84,944) 52,760,127
GBP British Pound Sterling United Kingdom 28,997,503 — — — 28,997,503
HKD Hong Kong Dollar Hong Kong 12,159,839 — — — 12,159,839
IDR Indonesian Rupiah Indonesia 1,416,925 — — — 1,416,925
ILS New Israeli Shekel Israel 426,231 — — — 426,231
INR Indian Rupee India 5,927,089 — — 844 5,927,933
JPY Japanese Yen Japan 30,460,210 — — — 30,460,210
KRW South Korean Won South Korea 7,577,343 — — — 7,577,343
MXN Mexican Peso Mexico 1,381,662 — — 22,786 1,404,448
MYR Malaysian Ringgit Malaysia 113,887 — — — 113,887
NOK Norwegian Krone Norway 236,973 — — — 236,973
PLN Polish Zloty Poland — — — — —
RUB Russian Ruble Russia 718,790 — — 58,510 777,300
SEK Swedish Krona Sweden 8,552,500 — — — 8,552,500
SGD Singapore Dollar Singapore 763,512 — — — 763,512
THB Thai Baht Thailand — — — — —
TRY Turkish Lira Turkey 3 — — — 3
TWD New Taiwan Dollar Taiwan 11,467,335 — — — 11,467,335
USD United States Dollar United States 854,571,617 — (104,775) 24,956,578 879,423,420
ZAR South African Rand South Africa 1,022,403 — — — 1,022,403
Total Equities (In USD) 1,047,562,772 — (103,970) 24,956,244 1,072,415,046
Total Non-USD Equities (In USD) $192,991,155 $— $805 ($334) $192,991,626
City of Fresno Employees Retirement System l FINANCIAL
Notes to the Basic Financial Statements Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 43
Foreign Currency Risk Exposure
As of June 30, 2023
Base Currency Country
Equities /
Fixed Income
Futures &
Forwards
Swaps &
Rights /
Warrants
Cash & Cash
Equivalents Total
AUD Australian Dollar Australia $ 1,667,282 $ — $ — $ 6,036 $ 1,673,318
BRL Brazilian Real Brazil 2,156,185 — — 1,260 2,157,445
CAD Canadian Dollar Canada 12,660,044 — — — 12,660,044
CHF Swiss Franc Switzerland 10,289,874 — — — 10,289,874
CNY Chinese Yuan Renminbi China 1,133,808 — — 5,206 1,139,014
DKK Danish Krone Denmark 7,576,155 — — — 7,576,155
EUR Euro Europe 60,304,955 — — (94,320) 60,210,635
GBP British Pound Sterling United Kingdom 27,106,181 — — — 27,106,181
HKD Hong Kong Dollar Hong Kong 10,093,013 — — 210,855 10,303,868
IDR Indonesian Rupiah Indonesia 1,973,131 — — — 1,973,131
ILS New Israeli Shekel Israel 1,070,601 — — — 1,070,601
INR Indian Rupee India 6,394,665 — — 16,626 6,411,291
JPY Japanese Yen Japan 40,453,813 — — — 40,453,813
KRW South Korean Won South Korea 7,391,699 — — — 7,391,699
MXN Mexican Peso Mexico 1,541,267 — — — 1,541,267
NOK Norwegian Krone Norway 614,765 — — — 614,765
PLN Polish Zloty Poland 685,297 — — — 685,297
RUB Russian Ruble Russia 1,122,685 — — 7,058 1,129,743
SEK Swedish Krona Sweden 10,178,369 — — — 10,178,369
SGD Singapore Dollar Singapore 975,837 — — (35) 975,802
THB Thai Baht Thailand 281,028 — — — 281,028
TRY Turkish Lira Turkey 1 — — — 1
TWD New Taiwan Dollar Taiwan 9,490,663 — — — 9,490,663
USD United States Dollar United States 815,225,434 — (115,797) 10,555,780 825,665,417
ZAR South African Rand South Africa 1,243,990 — — — 1,243,990
Total Equities (In USD) 1,031,630,742 — (115,797) 10,708,466 1,042,223,411
Total Non-USD Equities (In USD) $216,405,308 $— $— $152,686 $216,557,994
City of Fresno Employees Retirement System l FINANCIAL
Notes to the Basic Financial Statements Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 44
Per Section 3.5.e. of the System’s Investment Objectives
and Policy Statement, assets in international equity
portfolios shall consist of liquid, publicly traded equity
and equity like securities traded on major stock exchanges
as well as cash and cash equivalents as necessary.
Securities will be primarily composed of foreign ordinary
shares and depository receipts (American Depository
Receipts (ADR’s) and Global Depository Receipts
(GDR’s) including ADR’s and GDR’s that are 144A
securities). Securities that are 144A securities, including
ADR and GDR 144A securities, are authorized
investments which in aggregate cannot exceed 10 percent
of the portfolio. Primarily large capitalization securities
may be held, although investments in small and mid
capitalization securities are also allowed. Firms will
continually monitor their country, currency, sector and
security selection risks associated with their international
portfolios. All of the risks will be included in the
manager’s quarterly reports and performance attribution
based on these factors will also be included.
The System’s complete Investment Objectives and Policy
Statement can be found on the System’s website at
www.CFRS-CA.org or by contacting the Retirement
Office at 2828 Fresno Street, Suite 201, Fresno, CA
93721.
Rate of Return
For the fiscal years ended June 30, 2024 and 2023, the
annual money-weighted rate of return on the assets of the
System, net of investment expense, was 10.38 percent and
9.52 percent, respectively. The money-weighted rate of
return expresses investment performance, net of
investment expense, adjusted for timing of cash flows and
the changing amounts actually invested.
8 Derivatives
The Retirement Board has authorized certain investment
managers to invest in or otherwise enter into transactions
involving derivative financial instruments when, in the
judgment of management, such transactions are consistent
with the investment objectives established for a specific
investment manager’s assignment. The acceptable
investment purposes for the use of derivatives are as
follows:
a. Mitigation of risk (or risk reduction).
b. A useful substitute for an existing, traditional
investment. In certain circumstances it may be
cheaper, quicker or easier to invest in a
derivative instrument or security rather than
transacting in cash or in the traditional security
market.
c. To provide investment value to the portfolio
while being consistent with the System’s overall
and specific investment policies.
d. To obtain investment exposure which is
appropriate for the manager’s investment
strategy and the System’s investment guidelines,
but could not be made through traditional
investment securities.
The Retirement Board monitors and reviews each
investment manager’s securities and derivative position as
well as the manager’s performance relative to established
benchmark rates of return and risk measures. In
management’s opinion, derivative activities must be
evaluated within the context of the overall portfolio
performance and cannot be evaluated in isolation.
City of Fresno Employees Retirement System l FINANCIAL
Notes to the Basic Financial Statements Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 45
Allowable derivative financial instruments held by the
System include stable and well-structured collateralized
mortgage obligations (CMOs); centrally cleared
instruments including, but not limited to, futures, swaps
and options; and forwards including currency forwards.
Derivative investments with allocation limits include
mortgage derivatives (interest only and principal only
CMOs); non centrally cleared derivatives; caps and floors;
and inverse floating rate notes and bonds. Allocation
limits will be determined and specified in portfolio
guidelines with individual investment managers based on
the objectives and risk tolerances of a given strategy.
Cash securities containing derivative features include
callable bonds, structural notes, and collateralized
mortgage obligations (CMOs). These instruments are
generally traded in over-the-counter bond markets.
Financial instruments whose value is dependent upon a
contractual price or rate relative to one or more reference
prices or rates, applied to a notional amount, including
interest rate futures, options, swaps and caps, and foreign
currency futures and forward contracts. Some of these
instruments are exchange-traded and others are traded
over-the-counter (OTC).
Market Risk
Market risk is the risk of change in fair value of an
instrument in response to changes in a market price or
index. While all investments are subject to market risk,
derivatives often have a higher degree of market risk than
other types of investment instruments. Values of cash
securities containing derivative features are often more
susceptible to market risk than other types of fixed
income securities because the amounts and/or timing of
their scheduled cash flows may fluctuate under changing
market conditions, according to their contractual terms.
For other types of derivatives, amounts of contractual
cash flows may be either positive or negative depending
upon prevailing market conditions relative to the
reference prices or rates, and thus the values of such
instruments may be positive or negative, despite the fact
that little or no cash is initially exchanged to enter into
such contracts.
Credit Risk
Credit risk of cash securities containing derivative
features is based upon the credit worthiness of the issuers
of such securities. The Retirement Board establishes
minimum credit requirements for such securities. The
other derivative instruments described above are subject
to credit risk to the extent their value is a positive fair
value, and the counterparty to such contract fails to
perform under the terms of the instrument.
Exchange traded derivatives are generally considered to
be of lower credit risk than OTC derivatives due to the
exchange margin requirements. Equity Index Swaps are
derivatives and represent an agreement between two
parties to swap two sets of equity values. Equity Futures
are contracts used to replicate an underlying stock or
stock market index. These futures can be used for
hedging against an existing equity position, or for
speculating on future movement of the index.
City of Fresno Employees Retirement System l FINANCIAL
Notes to the Basic Financial Statements Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 46
As of June 30, 2024 and 2023, the System held a total fair
value of $24,748,410 and $11,758,875, respectively, in
derivative holdings. These holdings consisted of Rights/
Warrants, and Foreign Currency Forwards and Futures
designed to synthetically create equity returns and are
held as components of the System’s international equity
investments, and a variety of ACWIexUS index related
futures as components of the System’s investments in
ACWIexUS Index Funds. Holdings also consist of
futures – interest rate contracts, options and swaps held as
components of the System’s absolute return fixed income
strategy. These derivatives are used for the purpose of
synthetically creating equity returns, synthetically
creating floating rates and to buy or sell credit protection
on the assets.
There is no net counterparty exposure for which there is a positive replacement cost to the fund. The details of these
derivative holdings are as follows:
Derivative Type:FY 2024 FY 2023 FY 2024 - FY 2023
Notional Change in Fair
Amount Fair Value Fair Value Value
Foreign Currency Forward $(279,302)$280,537 $671,474 $ (390,937)
Future Contracts - Domestic Fixed Income (22,287,031)22,287,031 9,038,418 13,248,613
Future Contracts - International Equity Index —2,283,869 2,163,658 120,211
Rights & Warrants —1,750 1,125 625
Swaps —(104,777)(115,800) 11,023
Total $24,748,410 $11,758,875
Derivative Type:FY 2023 FY 2022 FY 2023 - FY 2022
Notional Change in Fair
Amount Fair Value Fair Value Value
Foreign Currency Forward $(672,802)$671,474 $33,712 $ 637,762
Future Contracts - Domestic Fixed Income (9,038,418)9,038,418 17,400,430 (8,362,012)
Future Contracts - International Equity Index —2,163,658 2,004,292 159,366
Rights & Warrants —1,125 2,639 (1,514)
Swaps —(115,800)— (115,800)
Total $11,758,875 $19,441,073
City of Fresno Employees Retirement System l FINANCIAL
Notes to the Basic Financial Statements Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 47
9 Securities Lending
The City of Fresno Municipal Code and the Board’s
policies permit the Retirement Boards of the City of
Fresno Fire and Police Retirement System and the City of
Fresno Employees Retirement System (the Systems) to
use investments of both Systems to enter into securities
lending transactions, i.e., loans of securities to broker-
dealers and other entities for collateral with a
simultaneous agreement to return the collateral for the
same securities in the future. The Systems have
contracted with Northern Trust, their custodian, to
manage the securities lending program for the Systems
and all securities held in a separately managed account are
available for lending. As the securities lending agent,
Northern Trust calculates collateral margins and accepts
collateral in the form of cash or marketable securities and
irrevocable bank letters of credit for all securities lending
transactions. Transactions are collateralized at 102
percent of fair value (contract value) for domestic
securities and 105 percent of fair value (contract value)
for international securities. Collateral is marked to market
daily. When a loan is secured by cash, a rebate is
negotiated and the cash collateral is invested according to
the guidelines in the collateral pool.
As designated by the Board, cash collateral is invested in
Northern Trust’s Core U.S.A. Collateral Section (short-
term investment pool), which, as of June 30, 2024 and
2023, had a weighted average duration of 69 days and 86
days, respectively, an average maturity of 22 days and 24
days, respectively, and an average monthly yield of 5.51
percent and 1.68 percent, respectively. The relationship
between the maturities of the investment pool and the
System’s loans is affected by the maturities of the security
loans made by other entities that use the Northern Trust
Core U.S.A. Collateral Section and a definitive statement
of that relationship cannot be formulated by the System.
As of June 30, 2024 and 2023, the Northern Trust CORE
U.S.A. Cash Collateral Fund had zero exposure in below
investment grade long-term securities and there were no
known credit risks related to the securities lending
transactions.
As of June 30, 2024, the fair value of the securities on
loan was $27.0 million. The fair value of associated
collateral was $27.9 million ($24.7 million of cash
collateral and $3.2 of non-cash collateral). Non-cash
collateral, the collateral which the System does not have
the ability to sell unless the borrower defaults, is not
reported in the Statement of Fiduciary Net Position. As of
June 30, 2023, the fair value of the securities on loan was
$26.8 million. The fair value of associated collateral was
$27.5 million ($22.3 million of cash collateral and $5.2 of
non-cash collateral). Non-cash collateral, the collateral
which the System does not have the ability to sell unless
the borrower defaults, is not reported in the Statement of
Fiduciary Net Position.
Northern Trust will ensure that, in any agreement with a
borrower, it retains its absolute right to terminate the
agreement without cause, upon short notice and without
any penalty. The System cannot pledge or sell collateral
securities received unless the borrower defaults. In the
event of a borrower default, Northern Trust indemnifies
the System against losses and will replace or reimburse
the System for any borrowed securities not replaced. In
general, the average term of all System loans is overnight
or “on demand." All securities loans can be terminated on
demand by either the lender or the borrower, although the
average term of the System’s loans were approximately
81 days and 24 days, respectively, as of June 30, 2024 and
2023.
City of Fresno Employees Retirement System l FINANCIAL
Notes to the Basic Financial Statements Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 48
The System’s securities lending income is as follows:
Securities Lending Income
For Fiscal Years Ended June 30, 2024 and 2023
2024 2023
Gross Income $1,522,511 $1,890,912
Expenses:
Bank Fees 1,358,605 1,593,398
Total Expenses 1,358,605 1,593,398
Net Income from Securities Lending $163,906 $297,514
Fair Value of Loaned Securities
As of June 30, 2024 and 2023
FY 2024 FY 2023
Collateralized by Cash Securities Total Cash Securities Total
U.S. Government & Agency $ 7,786,973 $ 804,454 $ 8,591,427 $ 9,310,151 $ 817,485 $ 10,127,636
Domestic Equities 3,426,281 12,511 3,438,792 3,115,405 742,087 3,857,492
Domestic Fixed 9,714,407 798,843 10,513,250 6,921,543 310,845 7,232,388
International Equities 3,054,348 1,404,301 4,458,649 2,422,920 2,906,090 5,329,010
International Fixed — — — — 256,040 256,040
Total Value $ 23,982,009 $ 3,020,109 $ 27,002,118 $ 21,770,019 $ 5,032,547 $ 26,802,566
Fair Value of Collateral Received for Loaned Securities
As of June 30, 2024 and 2023
FY 2024 FY 2023
Collateralized by Cash Securities Total Cash Securities Total
U.S. Government & Agency $ 8,008,908 $ 829,601 $ 8,838,509 $ 9,476,068 $ 828,845 $ 10,304,913
Domestic Equities 3,508,058 12,773 3,520,831 3,180,684 753,984 3,934,668
Domestic Fixed 9,984,458 815,481 10,799,939 7,036,113 315,795 7,351,908
International Equities 3,236,526 1,488,057 4,724,583 2,566,529 3,088,329 5,654,858
International Fixed — — — — 276,330 276,330
Total Value $ 24,737,950 $ 3,145,912 $ 27,883,862 $ 22,259,394 $ 5,263,283 $ 27,522,677
City of Fresno Employees Retirement System l FINANCIAL
Notes to the Basic Financial Statements Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 49
10 Administrative Expenses
Section 3-325 of the City of Fresno Municipal Code
provides that all administrative costs of the System shall
be a charge against the assets of the System. Per the City
of Fresno Municipal Code, the administrative expenses
are a component of the City’s contribution calculation.
11 Post Retirement Supplemental
Benefit (PRSB)
The System is not obligated to provide for or fund any
other post-employment benefits as retirees do not receive
paid healthcare benefits from the System. The Post
Retirement Supplemental Benefit (PRSB) Program was
created as a contingent program to provide supplemental
distributions to eligible retirees which they could use to
pay for various post retirement expenses. The Retirement
Board will annually review the actuarial valuation report
and declare an actuarial surplus, if available, in
accordance with the procedures in the City of Fresno
Municipal Code Section 3-567.
If an actuarial surplus is declared by the Board, the
surplus is allocated into two components. One component
composed of two-thirds of the declared surplus shall be
used to reduce or eliminate the City’s pension
contributions. Any unused portion shall be reserved in the
City Surplus Reserve and drawn upon in subsequent years
if needed. The remaining one-third component shall be
distributed among eligible post retirement supplemental
benefit recipients in accordance with procedures in the
City of Fresno Municipal Code Section 3-567(f)(4). Any
unused portion shall be reserved in the PRSB Reserve and
drawn upon in subsequent years if needed.
For the fiscal years ended June 30, 2024 and 2023, there
was a surplus (or prefunded actuarial accrued liability) as
the System had a valuation value of assets which was in
excess of the actuarial accrued liability. The System’s
funded ratio was 109.8 percent and 111.1 percent, for
fiscal years 2024 and 2023, respectively. For fiscal year
2024, the 109.8 percent funded ratio was less than the 110
percent requirement for declaration of a surplus therefore,
there was no actuarial surplus available to reduce a
portion of the City’s and members' COLA contributions
for Fiscal Year 2024, and no surplus to fund new PRSB
benefits. For fiscal year 2023, the 111.1 percent funded
ratio was above the required 110 percent for declaration
of a surplus.
As of June 30, 2024 and 2023, the City Surplus Reserve
balances were $(290,526) and $(210,036), respectively.
The City’s normal rate in fiscal year 2024 included an
adjustment of 0.77% which represented an actuarial
surplus allocated in the June 30, 2022 actuarial report. In
fiscal year 2023, the City's normal rate included an
adjustment of 1.26% which represented an actuarial
surplus allocated in the June 30, 2021 actuarial report.
12 Capital Assets
Capital assets are carried at historical cost, net of
accumulated depreciation. Capital assets are any items of
equipment or furnishings purchased with a value of or an
initial cost of $500 or greater and $5,000 for land,
buildings and infrastructure and an estimated useful life in
excess of two years.
Accumulated depreciation shall be summarized and
reflected on the System’s annual financial statements.
Capital assets shall be depreciated over their estimated
useful lives using the straight-line depreciation method.
Intangible assets with limited useful lives (e.g., by legal or
contractual provisions) should be depreciated over their
estimated useful lives. Depreciation of computer software
begins when the program is placed into service.
City of Fresno Employees Retirement System l FINANCIAL
Notes to the Basic Financial Statements Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 50
The System’s major two-year project to program and
install an upgrade to its original pension administration
system that was installed in 1997 (the LRS Pension Gold
Retirement Solutions’ Version 3 project) includes
software costs of $132,959 and $265,919 which were
capitalized as of June 30, 2024 and 2023, respectively,
and are depreciated over a ten-year useful life period
commencing July 1, 2015.
As of June 30, 2024, other capital assets consisting of
office furniture and equipment for the System’s
Retirement Offices located at 2828 Fresno Street, Fresno,
California, in the amount of $79,001 are capitalized and
depreciated over remaining estimated useful lives of 2-15
years.
As of June 30, 2023, capital assets consisting of office
furniture and equipment for the System’s Retirement
Offices in the amount of $81,102 were capitalized and
depreciated over remaining estimated useful lives of 2-15
years.
13 Leases
Under the lease agreement with CFRS Realty Holding
Corporation (the Corporation), the holding corporation
formed jointly by the Retirement Boards to take
ownership of the building, effective September 19, 2005,
the City of Fresno Employees and City of Fresno Fire and
Police Retirement Boards and their staff occupy
approximately 7,900 square feet of the second floor of the
renovated building at 2828 Fresno Street, Fresno,
California. The term of the lease is ten years with an
option for two additional five-year extensions. The first
five (5) year extension was exercised effective September
1, 2015. On March 1, 2020, the Corporation amended the
lease with the Retirement Boards. The amended lease
agreement establishes the Retirement Boards as the sole
tenant of the second floor, a total of 11,784 rentable
square feet, consisting of 10,426 net square feet in the
premises and 1,358 square feet in common area. The
amendment also exercises the second five (5) year lease
extension. As of June 30, 2024, the Systems share equally
a base rent of $20,400 per month, which is $1.73 per
square foot per month, triple net. For the fiscal year
ended June 30, 2023, the Systems equally shared a base
rent of $20,000 per month, which is $1.70 per square foot
per month, triple net.
14 Related Party Transactions
The Retirement System is involved in various business
transactions with the City of Fresno, the primary plan
sponsor. These include reimbursement to the City for the
salary and benefits of the System’s Retirement Staff
members paid through the City, reimbursement to the City
Personnel Department for personnel consulting services,
and reimbursement to the City Information Services
Department for computer and telephone support.
The Retirement Systems lease office space from the
CFRS Realty Holding Corporation, a title holding
company controlled jointly by the City of Fresno
Employees and City of Fresno Fire and Police Retirement
Systems. See Note 13 for a description of this
arrangement.
City of Fresno Employees Retirement System l FINANCIAL
Notes to the Basic Financial Statements Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 51
15 Commitments and Contingencies
The Board, in accordance with its Asset Allocation Plan, has committed capital for investment in Private Debt/Private Credit,
Private Real Estate and Infrastructure Funds. The following table details the outstanding capital commitments in these
investments as of June 30, 2024 and 2023.
Unfunded Commitments
Investment Type FY 2024 FY 2023 Investment Type FY 2024 FY 2023
Private Real Estate Funds Private Debt/Private Credit
Alidade Capital $ 7,152,161 $ 8,007,790 Arcmont $ 22,105,712 $ 31,148,575
Artemis 11,048,099 13,831,919 Cloverlay 9,453,143 13,299,670
Blue Vista — 722,027 Monroe Capital 19,299,655 17,779,194
Brookfield 4,493,624 5,565,871 Crescent Capital 17,789,709 19,288,247
The Carlyle Group 11,288,345 — PIMCO COF 23,020,552 23,006,944
Grain Communications 8,222,430 — Sixth Street/TAO 25,236,602 32,620,355
Kayne Anderson 7,627,035 14,786,389 Total $ 116,905,373 $ 137,142,985
Oaktree Capital Mgt. 1,970,945 1,969,780
PIMCO BRAVO III 10,407,754 3,045,572 Private Equity
PCCP, LLC 1,945,062 10,401,602 Ocean Ave $ 6,592,393 $ 8,122,804
Tristan Capital Partners — — Pantheon 90,765,473 48,589,379
Total $ 64,155,455 $ 58,330,950
Volta Energy
Technologies 6,321,474 —
Total $ 103,679,340 $ 56,712,183
FY 2024 FY 2023
Total Unfunded Commitments $ 284,740,168 $ 252,186,118
16 Date of Management Review
The date to which events occurring after June 30, 2024, have been evaluated for possible adjustments to the financial
statements or disclosures is December 4, 2024, which is the date the financial statements were available to be issued.
Management identified the following subsequent financial events that require disclosure:
The System is engaged in litigation with the City of Fresno regarding the City’s refusal to fully pay the actuarially determined
employer and employee contributions for fiscal year 2025. The Retirement Systems Boards, legal counsel and actuaries
believe the legal standing and fiduciary position are sound; however, any long-term potential financial impact is not presently
determinable and is not reflected in these statements.
City of Fresno Employees Retirement System l FINANCIAL
Notes to the Basic Financial Statements Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 52
Schedule of Changes in the Net Pension Liability
(Dollars in Thousands)
For Fiscal Years Ended June 30, 2015-2024
GASB 67 Basis*
Financial Reporting
Change in Net Pension Liability 2024 2023 2022 2021 2020
Total Pension Liability
Service cost $44,235 $37,299 $32,383 $30,993 $28,762
Interest 105,949 99,304 96,311 93,358 89,222
Change of benefit terms —————
Differences between expected and actual experience 40,919 35,440 40,833 (12,980)5,748
Changes of assumptions ——(4,262)——
Benefit Payments (including refunds, excluding PRSB)(83,202)(77,873)(71,884)(69,246)(64,520)
Net Change in Total Pension Liability $107,901 $94,170 $93,381 $42,125 $59,212
Total Pension Liability - Beginning $1,566,984 $1,472,814 $1,379,433 $1,337,308 $1,278,096
Total Pension Liability - Ending (a)*$1,674,885 $1,566,984 $1,472,814 $1,379,433 $1,337,308
Plan Fiduciary Net Position
Employee Contributions $18,833 $14,894 $15,493 $13,750 $11,028
Employer Contributions 28,621 22,236 22,016 20,144 16,554
Net Investment Income (Loss)169,858 164,014 (132,625)407,811 20,109
Actual Benefit Payments (including Refunds)(83,202)(77,873)(71,884)(69,246)(64,520)
Administrative & Professional Expense (2,318)(2,145)(2,050)(2,059)(1,749)
Net Change in Plan Fiduciary Net Position $131,792 $121,126 $(169,050)$370,400 $(18,578)
Plan Fiduciary Net Position - Beginning $1,683,313 $1,562,187 $1,731,237 $1,360,837 $1,379,415
Plan Fiduciary Net Position - Ending (b)$1,815,105 $1,683,313 $1,562,187 $1,731,237 $1,360,837
System Net Pension Liability (Surplus) - (a)-(b)$(140,220)$(116,329)$(89,373)$(351,804)$(23,529)
Plan fiduciary net position as a percentage of
total pension liability 108.37%107.42%106.07%125.50%101.76%
Covered Payroll**213,088 $186,219 $164,642 $154,031 $149,403
Net Pension Liability (Surplus) as a percentage of covered payroll (65.80)%(62.47)%(54.28)%(228.40)%(15.75)%
* In accordance with provisions of GASB 67, the data on the next two pages show Total Pension Liability for the reporting periods from June 30, 2015 through
June 30, 2024.
** Covered payroll represents pensionable compensation. Only pensionable compensation that would possibly go into the determination of retirement benefits is
included.
Note to Schedule:
Changes of Assumptions: The calculations above reflect various assumption changes, including the modification of the Board's assumed rate of return to 6.75 percent
for use in preparing the June 30, 2024, 2023, and 2022 annual actuarial valuations and other assumption changes based on the triennial experience study for the period
from July 1, 2018 through June 30, 2021. Assumption changes prior to June 30, 2022, are also reflected including the modification of the Board's assumed rate of
return to 7.00 percent for use in preparing the June 30, 2019, 2020 and 2021 annual actuarial valuations and other assumption changes based on the triennial experience
study for the period from July 1, 2015 through June 30, 2018. The calculations above also reflect the assumed rate of return of 7.25 percent for use in preparing the
June 30, 2016, 2017 and 2018 annual actuarial valuations and other assumption changes based on the triennial experience study for the period from July 1, 2012 through
June 30, 2015 and 7.50 percent for use in preparing the June 30, 2013, 2014 and 2015 annual actuarial valuations and other assumption changes based on the triennial
experience study for the period from July 1, 2009 through June 30, 2012 which included changes in assumptions for retirement from active employment, pre-retirement
mortality, healthy life post-retirement mortality, disabled life post-retirement mortality, vested termination, disability DROP election, percentage of members married,
spouse age difference and salary increases.
City of Fresno Employees Retirement System l FINANCIAL
Required Supplementary Information
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 53
Schedule of Changes in the Net Pension Liability Continued
(Dollars in Thousands)
For Fiscal Years Ended June 30, 2015-2024
GASB 67 Basis*
Financial Reporting
Change in Net Pension Liability 2019 2018 2017 2016 2015
Total Pension Liability
Service cost $23,509 $21,275 $18,885 $18,687 $18,476
Interest 86,110 82,833 79,266 79,762 78,212
Change of benefit terms —————
Differences between expected and actual experience (446)(4,164)5,263 (24,394)(24,691)
Changes of assumptions 35,773 2,939 —9,612 0
Benefit Payments (including refunds, excluding PRSB)(62,144)(57,666)(55,550)(52,528)(50,546)
Net Change in Total Pension Liability $82,802 $45,217 $47,864 $31,139 $21,451
Total Pension Liability - Beginning $1,195,294 $1,150,077 $1,102,213 $1,071,074 $1,049,623
Total Pension Liability - Ending (a)*$1,278,096 $1,195,294 $1,150,077 $1,102,213 $1,071,074
Plan Fiduciary Net Position
Employee Contributions $10,515 $10,330 $10,181 $9,098 $8,750
Employer Contributions 14,627 14,609 15,205 13,060 12,327
Net Investment Income (Loss)69,389 108,916 162,373 5,089 33,309
Actual Benefit Payments (including Refunds)(62,144)(57,666)(55,550)(52,529)(50,546)
Administrative & Professional Expense (1,663)(1,619)(1,387)(1,346)(1,071)
Net Change in Plan Fiduciary Net Position $30,724 $74,570 $130,822 $(26,628)$2,769
Plan Fiduciary Net Position - Beginning $1,348,691 $1,274,121 $1,143,299 $1,169,927 $1,167,158
Plan Fiduciary Net Position - Ending (b)$1,379,415 $1,348,691 $1,274,121 $1,143,299 $1,169,927
System Net Pension Liability (Surplus) - (a)-(b)$(101,319)$(153,397)$(124,044)$(41,086)$(98,853)
Plan fiduciary net position as a percentage of
total pension liability 107.93%112.83%110.79%103.73%109.23%
Covered Payroll**$138,396 $128,461 $119,007 $108,541 $105,820
Net Pension Liability (Surplus) as a percentage of covered payroll (73.21)%(119.41)%(104.23)%(37.85)%(93.42)%
City of Fresno Employees Retirement System l FINANCIAL
Required Supplementary Information Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 54
Schedule of Employer Contributions
Last Ten Fiscal Years
(Dollars in Thousands)
Fiscal Year
Ended June 30
Actuarially
Determined
Contribution (ADC)
Contributions in
Relation to the
ADC
Contribution
Deficiency
(Excess)Covered Payroll
Contributions as a
Percentage
of Covered Payroll
2024 $28,621 $28,621 $—$213,088 13.43%
2023 22,236 22,236 —186,219 11.94%
2022 22,017 22,017 —164,642 13.37%
2021 20,144 20,144 —154,031 13.08%
2020 16,554 16,554 —149,403 11.08%
2019 14,627 14,627 —138,396 10.57%
2018 14,609 14,609 —128,461 11.37%
2017 15,205 15,205 —119,007 12.78%
2016 13,060 13,060 —108,541 12.03%
2015 12,327 12,327 —105,820 11.65%
Schedule of Investment Returns
Last Ten Fiscal Years
Fiscal Year Annual Money-Weighted Rate of Return Annual Money-Weighted Rate of Return
Ending June 30 Gross of Investment Expenses Net of Investment Expense
2024 10.56%10.38%
2023 9.74%9.52%
2022 (7.12%)(7.28%)
2021 30.85%30.43%
2020 1.61%1.26%
2019 5.54%5.20%
2018 8.93%8.57%
2017 14.73%14.35%
2016 0.82%0.53%
2015 3.32%2.93%
The Schedule of Investment Returns above shows the annual money-weighted rate of return on the assets of the System, both gross and net of investment
expense for ten fiscal years (2015 – 2024). The money-weighted rate of return expresses investment performance adjusted for timing of cash flows and the
changing amounts actually invested. These returns differ slightly from the time-weighted rate of returns calculated and reported by the System’s custodian,
Northern Trust (shown in the Transmittal Letter on page i and within the Investment Section beginning on page 60) and as independently reported by the
System’s investment consulting firm, NEPC, LLC (shown in the Investment Section on pages 66-67). The System’s custodian and investment consulting
firm must use time-weighted returns as opposed to money-weighted returns in order to meet Global Investment Performance Standards for the purposes of
effectively evaluating and reporting the performance of the System's investment managers.
The time-weighted return method is a measure of the compound rate of return of a portfolio over a stated period of time. It requires a set of sub-period
returns to be calculated whenever there is an external cash flow, such as a deposit or withdrawal from the portfolio. In essence, it calculates the geometric
total and mean return as opposed to the arithmetic total and mean return. This method does not include or have any distortions created when money is
deposited or withdrawn from a portfolio. This is in contrast to the money-weighted returns.
City of Fresno Employees Retirement System l FINANCIAL
Required Supplementary Information Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 55
For Fiscal Years Ended June 30, 2024 and 2023
Actuarial Assumptions
The Segal Company, the System’s actuary, performed the most recent annual actuarial valuation as of June 30, 2024, which
computes the contribution requirements (employee and employer contributions rates for fiscal year 2026), and determines the
funding status of the plan. The fiscal year 2024 contribution rates and assumptions were based on the actuarial valuation as
of June 30, 2022; these assumptions are detailed below.
Valuation Date:Actuarially determined contribution rates are calculated as of June 30,
two years prior to the end of the fiscal year in which contributions are
reported.
Actuarial Cost Method:Entry Age Actuarial Cost Method
Amortization Method:Level percent of payroll.
Remaining Amortization Period: Effective with the June 30, 2013 valuation, any new UAAL established
on each subsequent valuation as a result of actuarial gains or losses or
plan amendments are amortized over separate 15-year declining periods
(with the exception of temporary retirement incentives which are
amortized over its own declining period of up to 5 years). Any new
UAAL established as a result of changes in actuarial assumptions or
methods at each valuation is amortized over separate 25-year declining
periods. Any actuarial surplus (when the funded ratio is over 110%)
will be amortized over a non-declining 30-year period.
Asset Valuation Method:Fair value of assets less unrecognized returns from each of the last five
years. Unrecognized returns are equal to the difference between the
actual market return and the expected return on a fair value basis and
are recognized over a five-year period. The Actuarial Value of Assets is
reduced by the value of the non-valuation reserves.
City of Fresno Employees Retirement System l FINANCIAL
Notes to the Required Supplementary Information
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 56
Actuarial Assumptions Continued:
Investment Rate of Return: 6.75%
Inflation Rate: 2.50%
Real Across-the-Board Salary Increase: 0.50%
Projected Salary Increases: Ranges from 3.75 percent to 11.50 percent based on years of service.
Includes inflation at 2.50% of retirement income, plus real across-the-
board salary increase of 0.50% plus merit and promotion increases.
Cost-of-Living Adjustments: 2.50 percent of retirement income
Other Assumptions: See June 30, 2022 funding valuation report and Section 4 for the
service retirement rates after they have been adjusted to treat DROP
participation as service retirement.
Post-Retirement Mortality Rates: For healthy members and
beneficiaries, Pub-2010 General Healthy Retiree Amount-Weighted
Mortality Table (separate tables for males and females) times 105%,
projected generationally with the two-dimensional mortality
improvement scale MP-2021; For disabled members, Pub-2010 Non-
Safety Disabled Retiree Amount-Weighted Mortality Table (separate
tables for males and females), projected generationally with the two-
dimensional mortality improvement scale MP-2021.
City of Fresno Employees Retirement System l FINANCIAL
Notes to the Required Supplementary Information Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 57
Schedule of Administrative Expenses
For Fiscal Years Ended June 30, 2024 and 2023
2024 2023
Personnel Services
Staff Salaries $ 914,456 $ 827,355
Fringe Benefits 254,160 213,559
Total Personnel Services $ 1,168,616 $ 1,040,914
Professional Services
Actuarial $ 79,169 $ 110,820
Legal Counsel 121,471 140,431
Information Systems Services 85,729 76,247
Specialized Services 130,297 40,436
Total Professional Services $ 416,666 $ 367,934
Communication
Telephone $ 5,450 $ 8,891
Postage 1,405 499
Total Communication $ 6,855 $ 9,390
Rentals
Office Rent $ 122,000 $ 119,607
Common Area Maintenance (CAM) Charges 81,948 99,303
Total Rentals $ 203,948 $ 218,910
Other
Education and Conference $ 77,644 $ 91,609
Membership & Dues 7,703 6,793
Subscriptions & Publications 831 602
Office Supplies 3,429 2,950
Computer Equipment 4,526 4,310
Equipment Lease 22,694 26,940
Insurance 78,239 76,975
Miscellaneous 9,114 9,298
Reimbursement to City for Inter-Dept Services 177,678 149,351
Depreciation 140,135 139,890
Total Other $ 521,993 $ 508,718
Total Administrative Expenses $ 2,318,078 $ 2,145,866
City of Fresno Employees Retirement System l FINANCIAL
Other Supplementary Information
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 58
Schedule of Investment Management Expenses
For Fiscal Years Ended June 30, 2024 and 2023
2024 2023
Investment Manager Fees
Equity
Domestic $ 40,818 $ 35,279
International 1,174,071 1,129,947
Private Equity 2,117,305 1,812,585
Fixed Income 334,207 449,283
Private Debt/Credit 20,138,744 10,303,873
Real Assets 7,477,991 8,516,090
Multi-Assets 816,897 389,953
Total Investment Manager Fees 32,100,033 22,637,010
Other Investment Expenses
Foreign Income Taxes & Related Services, Charges 1,674,293 1,999,450
Custodial Services 137,765 155,924
Investment Consultant 184,530 158,125
Investment Legal Counsel 97,381 54,887
Analytical Database Service 111,213 92,645
Total Other Investment Expenses 2,205,182 2,461,031
Total Fees & Other Investment Expenses 34,305,215 25,098,041
Securities Lending Expenses
Agent Fees 1,358,605 1,593,398
Total Securities Lending Expenses 1,358,605 1,593,398
Total Investment Expenses $ 35,663,820 $ 26,691,439
Schedule of Payments To Consultants
For Fiscal Years Ended June 30, 2024 and 2023
2024 2023
Actuarial Services $ 79,169 $ 110,820
Audit Services 22,817 23,212
City Information Services 85,729 76,247
Legal Services 121,471 140,431
Medical Consultant 55,620 13,700
Miscellaneous 51,860 3,524
Total Payments to Consultants $ 416,666 $ 367,934
City of Fresno Employees Retirement System l FINANCIAL
Other Supplementary Information Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 59
We promise to carry
out our Mission
through a competent,
professional, impartial
and open decision-
making process. In
providing benefits and
services, all persons
will be treated fairly,
with courtesy and
respect.
INVESTMENT
61 Investment Report from the Retirement Administrator
66 Investment Consultant’s Report
68 Investment Results (Gross and Net of Fees)
70 Target Asset Allocation and Actual Asset Allocation
72 Largest Stock and Bond Holdings
73 Schedule of Commissions
73 Investment Summary
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 60
Investment Report from the
Retirement Administrator
For the Years June 30, 2024 and 2023
Analysis of Our Portfolio in Fiscal Year 2024
The Board’s responsibility, as a long-term investor, is to
manage in and through the global financial market
environments as they unfold. Our Board understands the
System’s portfolio requires a sound and stable strategy for
meeting investment goals over the long-term with
appropriate risk levels and controls.
Fiscal Year 2024 saw a return of volatility in the markets
mainly due to the anticipation of global Central Banks
cutting interest rates. By most measures, inflation has
been contained, though not subdued, leading to
speculation of a ‘soft landing’ scenario. While the yield
curve continued to remain inverted, there is little
expectation for a recession or prolonged slowdown in
growth which resulted in higher valuations for public
equities. Private market strategies continue to be
challenged due to the lack of distributions and liquidity
constraints some investors are experiencing. Some
pockets, such as private debt, have seen an explosion in
growth and popularity due to the current macro
environments globally. The United States Dollar
expanded its strength against a basket of peers, thereby
indirectly hampering export-led businesses, although
some weakening began towards the end of the Fiscal
Year. The Board also approved a dedicated allocation to
cash for liquidity and rebalancing purposes.
From an investment perspective, infrastructure and private
debt provided hedges to inflation while public equities
rallied, earning nearly 20%. From a profit and loss
perspective, the total fund increased by $292 million. The
strategic asset allocation that went into effect July 1, 2021
continues to diversify the portfolio over the long-term
with all major asset class groupings continuing to be
defined by their respective ‘beta group’ for risk
management purposes.
The System generated a net return of 10.4% and
outperformed its policy benchmark by 0.50% in Fiscal
Year 2024, as reported by its custodian Northern Trust.
The System outperformed its assumed rate of return by
3.5% and, across longer investment horizons, also
outperformed its assumed rate of return and policy
benchmark.
Public equities, led by an increased appetite in Artificial
Intelligence (AI)-driven stocks, continued its meteoric rise
but remained overweight by 5.6%. Existing and new
commitments in Private Real Estate, Infrastructure,
Private Equity, and Alternative Credit continue to be
funded. All strategies except for core real estate earned
positive absolute performance. The System completed
three searches across Real Estate, Infrastructure, and
Private Equity.
City of Fresno Employees Retirement System l INVESTMENT
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 61
Investment Performance
The System earned a gross return of 10.59%. The table
below highlights the performance of each major asset
class provided by the System's custodian, Northern Trust.
These returns may differ slightly from the performance
reported by the System's investment consultant due to
rounding:
Asset Class Gross Return Net Return
Total Fund 10.59%10.41%
Domestic Equity 23.19%23.18%
International Equity 10.49%10.07%
Private Equity 9.83%9.83%
Rates/Credit 9.99%9.91%
Real Assets (0.48)%(0.77)%
Multi-Assets 10.79%10.79%
Fiscal Year-End Fund
Value $1,815,104,966
The System’s 10, 15 and 20-year long-term gross returns
of 7.49, 9.54, and 7.57 percent, respectively, illustrate the
System’s ability to achieve our long-term objectives over
extended periods. Meanwhile, the System remains highly
funded and well positioned to serve our members and
retirees.
The principal goals of the System’s Board in managing
the System’s Investment Portfolio are the following:
1) To fund the System’s benefit payments;
2) To assume a prudent risk posture to minimize the
cost of meeting the obligations of the System;
3) To comply with legal statutes and regulations; and
4) To maintain a fully funded pension status.
Presented in the graph below are the System’s Total Fund
returns versus NEPC, LLC’s InvestorForce (IF) Public
Funds Universe (Gross of Fees), for plans with $1 billion
or more in assets:
Period Ending June 30Percentage %City of Fresno Retirement Systems
Fiscal Year Total Fund and Median Fund Annual Returns
Fresno Total Fund (Gross of Fees)Weighted Benchmark Indexes
IF Median Public Pension Fund
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
-10%
-5%
0%
5%
10%
15%
20%
25%
30%
35%
City of Fresno Employees Retirement System l INVESTMENT
Investment Report from the Retirement Administrator Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 62
Summary of Portfolio Results
The fiscal year ended June 30, 2024, marked the
continuation of a subset of domestic public equities
soaring well past meaningful valuations while bonds
delivered a very modest return. The System experienced a
total gross return of 10.59 percent for the fiscal year
ended June 30, 2024, outperforming the System’s
actuarial interest rate assumption of 6.75 percent by 3.84
percent and outperforming the System’s policy
benchmark (a weighted average of the fund’s asset classes
and their respective benchmarks) return of 9.89 percent by
0.70 percent. The System’s ten-year annualized returns
averaged 7.49 percent, outperforming its policy
benchmark return of 6.66 percent for the period by 0.83
percent. Over the longer term, our investment results
remain sound with annualized returns of 7.57 percent and
6.89 percent, respectively, over the past twenty and
twenty-five years. After paying all benefits and expenses
of the System, the year-end value of the System reached
$1.815 billion.
General Information
The System’s investment assets are managed by external
investment management firms. Professional investment
consultants, along with staff, closely monitor the activity
of these managers and assist the Board with the
implementation of investment policies and long-term
strategies. The System’s goal is to fund benefit payments,
while assuming a risk posture that is consistent with the
Board’s risk tolerance, protecting against loss of
purchasing power by achieving rates of return above
inflation, and to maintain a fully funded pension status.
Summary of General Investment
Guidelines, Policies and Procedures
The Board, having the sole and exclusive authority and
fiduciary responsibility for the administration of the
System and its assets, has adopted an Investment Policy
Statement which reflects the Board’s policies for
management of the System’s investments. The Board
reserves the right to amend, supplement or rescind this
statement at any time. This Investment Policy Statement
establishes the investment program goals and policies,
asset allocation policies, and beliefs. It also defines the
principal duties of the Board, staff, investment managers,
master custodian and consultants.
An integral part of the overall investment policy is the
strategic asset allocation policy. This allocation mix is
designed to provide return expectations that reflect
expected risk. This emphasizes a maximum
diversification of the portfolio that protects the System
from declines that a particular asset class may experience
in a given period. Both traditional assets (equities and
fixed income) and non-traditional assets (real estate,
infrastructure, midstream energy, private equity, and
private debt) are included in the mix.
Total portfolio return, over the long-term, is directed
toward achieving and maintaining a fully funded status
for the System. Prudent risk taking is warranted within
the context of overall portfolio diversification to meet this
objective. All activities will be conducted so as to serve
the best interests of the System’s members and
beneficiaries.
City of Fresno Employees Retirement System l INVESTMENT
Investment Report from the Retirement Administrator Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 63
Summary of Proxy Voting Guidelines and
Procedures
In recognition of its duty to manage retirement plan assets
in the best interest of the plan participants, the Board has
established proxy voting guidelines and procedures which
are intended to assist in the faithful discharge of the
Board’s duty to vote proxies on behalf of plan
participants. These guidelines consist of preferences with
respect to specific, recurring proxy-voting issues followed
by a general statement of voting policies. The System
will at all times strive to cast proxy votes so as to advance
the overall good of the System.
Specific Investment Results by Asset
Classification
As of June 30, 2024, the System’s portfolio was slightly
over-weight in total equities, with 51.8 percent in total
equities versus the target of 47.0 percent. Domestic
equities were slightly over-weight with 24.6 percent
versus the target of 22.5 percent, and international
equities with 20.0 percent were slightly over-weight of the
international equities target of 18.0 percent. Private
equity was slightly over-weight of the target of 6.5% with
7.2%. Rates/Credit with 24.7 percent was under-weight
of its target of 27.0 percent, and real assets at 20.9 percent
was 1.1 percent under-weight of its target of 22.0 percent.
Multi-Asset investments represented 1.6 percent of the
System's portfolio, which is 2.4 percent under-weight of
its target of 4.0 percent.
The investments were further diversified into the following asset classes and target percentages:
Asset Classification Actual Target
Equities
Domestic 24.6%22.5%
International 20.0%18.0%
Private 7.2%6.5%
Rates/Credit
Core Fixed Income 11.6%13.0%
Private Debt/Credit 13.1%14.0%
Real Assets
Core Real Estate 9.7%9.0%
Non-Core Real Estate 5.2%6.0%
Infrastructure 6.0%7.0%
Multi-Asset
Alternative Credit 1.6%4.0%
Short-Term Investments 1.0%—%
Total 100.0%100.0%
City of Fresno Employees Retirement System l INVESTMENT
Investment Report from the Retirement Administrator Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 64
City of Fresno Employees Retirement System l INVESTMENT
Investment Report from the Retirement Administrator Continued
This asset class diversification allows the Joint Boards to monitor and adjust their risk in accordance with its Investment
Policy Statement. The investment returns presented herein are based on the modified Dietz rate of return methodology. As
Fiscal Year 2024 came to a close, specific domestic public equities, moderating inflation, and a strong U.S. dollar created
unique challenges for global investors. These uncertainties provide little comfort to asset allocators in the near-term but
unique opportunities to exploit inefficiencies in the long-term. Market participants expect some relief from the current
interest rate regime to be in place for the near- to short-term periods and a potential soft landing for the domestic economy in
2024. However, the U.S. economy has been far more resilient than expected relative to peers but a looming election season
later in the calendar year could upend the trend. The Fund earned positive relative and absolute returns, with continued
diversification across strategies and regions.
Respectfully submitted,
Robert T. Theller
Robert T. Theller, Esq.
Retirement Administrator
December 4, 2024
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 65
Investment Consultant’s Report
City of Fresno Employees Retirement System l INVESTMENT
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 66
City of Fresno Employees Retirement System l INVESTMENT
Investment Consultant's Report Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 67
Investment Results
Gross of Fees Ending June 30, 2024
Fair Value ($)% of Portfolio 1 Yr (%)3 Yrs (%)5 Yrs (%)10 Yrs (%)
Total Fund 3,977,605,691 100.00 10.59 4.06 8.42 7.49
Policy Index 10.23 3.10 7.08 6.54
InvMetrics Public DB > $1 Billion Median 9.96 3.22 7.37 6.58
Total Equity Composite 2,061,233,403 51.82 16.27 3.14 10.08 8.53
MSCI AC World All Cap Index (Net)19.38 5.43 10.76 8.43
InvMetrics Public DB Global Equity Median
Domestic Equity Composite 977,280,295 24.57 23.18 7.33 13.74 11.82
Domestic Equity Index 23.12 8.05 14.08 11.84
InvMetrics Public DB US Equity Median 21.92 7.13 13.46 11.60
Private Equity 287,374,456 7.22 9.88 12.21 14.72
Private Equity Index 24.29 7.91 12.38 12.20
International Equity Composite 796,578,652 20.03 10.77 -1.99 5.85 5.03
International Equity Index 12.17 0.97 6.40 4.47
InvMetrics Public DB Global ex-US Equity Median 11.28 0.56 6.17 4.70
Total Fixed Income Composite 980,481,133 24.65 10.05 3.28 4.86 4.50
Fixed Income Index 6.86 1.52 3.05 3.40
Blmbg. U.S. Aggregate Index 2.63 -3.02 -0.23 1.35
InvMetrics Public DB Fixed Income Median 4.95 -1.40 1.33 2.50
Core Fixed Composite 459,281,809 11.55 4.90 -1.83 0.95 2.30
Blmbg. U.S. Aggregate Index 2.63 -3.02 -0.23 1.35
InvMetrics Public DB US Fixed Income Median 4.03 -1.99 0.80 2.32
Private Credit 521,199,324 13.10 14.89 10.86 10.53 0.00
Private Credit Index 10.81 3.92 5.12 0.00
Real Assets 832,196,930 20.92 -0.23 7.02 6.06 7.73
Real Estate Index -9.75 1.29 2.54 5.56
InvMetrics Public DB Real Estate Public & Private Median -7.36 2.39 3.61 6.15
Private Real Estate Composite 207,440,094 5.22 3.62 9.37 8.25 11.21
NCREIF ODCE -9.25 1.90 3.16 6.41
Infrastructure 239,869,437 6.03 12.12 7.81 7.11
CPI + 4% (Unadjusted)7.09 9.16 8.34 6.91
Alternative Credit 62,826,152 1.58 10.80 0.00 0.00 0.00
Cash & Equivalents Composite 40,868,073 1.03 5.28 3.92 2.71 1.83
90 Day U.S. Treasury Bill 5.40 3.03 2.16 1.50
Calculations are prepared by NEPC, LLC using a time-weighted rate of return based on fair values.
City of Fresno Employees Retirement System l INVESTMENT
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 68
Investment Results (Continued)
Net of Fees Ending June 30, 2024
Fair Value ($)% of Portfolio 1 Yr (%)3 Yrs (%)5 Yrs (%)10 Yrs (%)
Total Fund $ 3,977,605,691 100.00 10.45 3.93 8.19 7.19
Policy Index 10.23 3.10 7.08 6.54
InvMetrics Public DB > $1 Billion Median 9.57 3.03 7.16 6.28
Total Equity Composite 2,061,233,403 51.82 16.12 3.01 9.99 8.49
MSCI AC World All Cap Index (Net)19.38 5.43 10.76 8.43
InvMetrics Public DB Global Equity Median 16.09 3.63 8.42
Domestic Equity Composite 977,280,295 24.57 23.17 7.29 13.62 11.62
Domestic Equity Index 23.12 8.05 14.08 11.84
InvMetrics Public DB US Equity Median 21.35 6.77 13.10 11.11
Private Equity 287,374,456 7.22 9.88 12.21 14.72
Private Equity Index 24.29 7.91 12.38 12.20
International Equity Composite 796,578,652 20.03 10.45 -2.29 5.51 4.67
International Equity Index 12.17 0.97 6.40 4.47
InvMetrics Public DB Global ex-US Equity Median 10.81 0.40 5.72 4.14
Total Fixed Income Composite 980,481,133 24.65 9.99 3.19 4.81 4.47
Fixed Income Index 6.86 1.52 3.05 3.40
Blmbg. U.S. Aggregate Index 2.63 -3.02 -0.23 1.35
InvMetrics Public DB Fixed Income Median 4.75 -1.69 1.14 2.17
Core Fixed Composite 459,281,809 11.55 4.77 -1.97 0.80 2.15
Blmbg. U.S. Aggregate Index 2.63 -3.02 -0.23 1.35
InvMetrics Public DB US Fixed Income Median 3.84 -2.26 0.73 2.18
Private Credit 521,199,324 13.10 14.89 10.86 10.53 0.00
Private Credit Index 10.81 3.92 5.12 0.00
Real Assets 832,196,930 20.92 -0.44 6.84 5.96 7.67
Real Estate Index -9.75 1.29 2.54 5.56
InvMetrics Public DB Real Estate Public & Private Median -7.81 1.93 3.14 5.54
Private Real Estate Composite 207,440,094 5.22 3.62 9.37 8.25 11.01
NCREIF ODCE -9.25 1.90 3.16 6.41
Infrastructure 239,869,437 6.03 11.53 7.55 6.96
CPI + 4% (Unadjusted)7.09 9.16 8.34 6.91
Midstream Energy 62,826,152 1.58 10.80 0.00 0.00 0.00
Cash & Equivalents Composite 40,868,073 1.03 5.28 3.92 2.71 1.83
90 Day U.S. Treasury Bill 5.40 3.03 2.16 1.50
Calculations are prepared by NEPC, LLC using a time-weighted rate of return based on fair values.
City of Fresno Employees Retirement System l INVESTMENT
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 69
Target and Actual Asset Allocation
As of June 30, 2024
Asset Class Current Target Allocation Range Actual
Domestic Equities 22.5%15.0% - 36.0%24.6%
International Equities 18.0%10.0% - 25.0%20.0%
Private Equity 6.5%0.0% - 10.0%7.2%
Core Fixed Income 13.0%5.0% - 20.0%11.6%
Private Debt/Credit 14.0%5.0% - 20.0%13.1%
Core Real Estate 9.0%5.0% - 15.0%9.7%
Non-Core Real Estate 6.0%2.0% - 8.0%5.2%
Infrastructure 7.0%2.0% -1 0.0%6.0%
Alternative Credit 4.0%0.0% - 7.0%1.6%
Short-Term Investments —%0.0% - 0.0%1.0%
Target Asset Allocation
As of June 30, 2024
Domestic Equities
22.5%
International Equities
18.0%
Private Equity
6.5%
Core Fixed Income
13.0%
Private Debt/Credit
14.0%
Core Real Estate
9.0%
Non-Core Real Estate
6.0%
Infrastructure
7.0%
Alternative Credit
4.0%
City of Fresno Employees Retirement System l INVESTMENT
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 70
Actual Asset Allocation
As of June 30, 2024
Domestic Equities
24.6%
International Equities
20.0%
Private Equity
7.2%
Core Fixed Income
11.6%
Private Debt/Credit
13.1%
Core Real Estate
9.7%
Non-Core Real Estate
5.2%
Infrastructure
6.0%
Alternative Credit
1.6%
Short-Term
Investments
1.0%
City of Fresno Employees Retirement System l INVESTMENT
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 71
Largest Stock Holdings (by Fair Value)
As of June 30, 2024
Shares Stock Holding Fair Value
1)259,180 TAIWAN SEMICONDUCTOR MANUFACTURING TWD10 $ 7,717,531
2)91,330 SAMSUNG ELECTRONICS CO KRW100 5,407,502
3)111,439 TENCENT HOLDINGS LIMITED HKD0.00002 5,315,433
4)2,720 MERCADOLIBRE INC COM STK 4,470,855
5)4,194 ASML HOLDING NV EUR0.09 (POST SPLIT) 4,334,309
6)552,226 AIA GROUP LIMITED NPV 3,748,747
7)49,584 CRH PLC EQUITY 3,695,583
8)14,705 SAP SE 2,986,780
9)16,897 ASTRAZENECA ORD USD0.25 2,639,226
10)47,352 UNILEVER PLC ORD GBP0.031111 2,600,810
Total Largest Stock Holdings $ 42,916,776
Largest Bond Holdings (by Fair Value)
As of June 30, 2024
Share/Par Coupon Maturity
Value Bond Holding Rate Date Fair Value
1)3,465,522 UNITED STATES OF AMER TREAS BONDS DTD 4.125%2053/08/15 $ 3,227,132
2)3,332,014 FEDERAL HOME LN MTG CORP POOL #SD7526 2.500%2050/10/01 2,776,453
3)3,409,367 FNMA POOL #FM8308 2.0% DUE 07-01-2051 2.000%2051/07/01 2,715,471
4)2,657,777 FEDERAL HOME LN MTG CORP POOL #RA7194 3.500%2052/04/01 2,364,755
5)3,203,632 UNITED STATES TREAS BDS 2.25% 2.250%2041/05/15 2,317,878
6)2,577,410 FNMA 3.5% 04-01-2052 3.500%2052/04/01 2,299,397
7)2,758,525 FEDERAL HOME LN MTG CORP POOL #SD8090 2.000%2050/09/01 2,177,585
8)2,586,172 FEDERAL HOME LN MTG CORP POOL #SD1581 2.500%2052/09/01 2,114,920
9)1,944,609 PVTPL NAVIENT STUDENT LN TR 2016-5 NT CL 6.700%2065/06/25 1,955,201
10)2,153,847 FNMA POOL #CB3594 3.5% DUE 05-01-2052 3.500%2052/05/01 1,916,395
Total Largest Bond Holdings $ 23,865,187
A complete list of portfolio holdings is available upon request.
City of Fresno Employees Retirement System l INVESTMENT
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 72
Schedule of Commissions
For The Fiscal Year Ended June 30, 2024
Total Number of Commission
Brokerage Firm Commissions Shares Cost/Share
B.RILEY & CO. LLC $ 7,314 3,052,796 $ 0.0024
BARCLAYS CAPITAL 4,673 362,697 0.0129
JEFFERIES LLC. 4,607 16,554,338 0.0003
JEFFERIES INTERNATIONAL LTD 4,504 1,780,983 0.0025
RBC CAPITAL MARKETS, LLC 4,422 586,022 0.0075
UBS SECURITIES ASIA LIMITED 4,337 18,961,470 0.0002
GOLDMAN, SACHS AND CO. 4,077 30,925,890 0.0001
J.P. MORGAN SECURITIES PLC 3,454 460,493 0.0075
CITIGROUP GLOBAL MARKETS INC. 3,347 278,925 0.0120
CREDIT SUISSE INTERNATIONAL 2,974 230,746 0.0129
$ 43,709 73,194,360 $ 0.0006
All Other Brokerage Firms 57,589 1,064,010,540 0.0001
TOTAL $ 101,298 1,137,204,900 $ 0.0001
Investment Summary
For The Fiscal Year Ended June 30, 2024
Investment Value Percent of Fund
Investment
Management Fees
Equity
Domestic $ 441,275,085 24.3%$ 40,818
International 354,893,134 19.6% 1,174,071
Private Equity 131,684,368 7.3% 2,117,305
Fixed Income 224,246,610 12.4% 334,207
Private Debt/Credit 243,292,717 13.4% 20,138,744
Real Assets 382,654,714 21.1% 7,477,991
Multi-Assets 29,104,101 1.6% 816,897
Short-Term Investments 6,714,859 0.3% —
Total $ 1,813,865,588 100.0%$ 32,100,033
City of Fresno Employees Retirement System l INVESTMENT
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 73
Assets will be invested
and administered to
balance the need to
control risk with
superior performance.
We expect excellence
in all activities. We
will also be
accountable and act in
accordance with the
law.
ACTUARIAL
75 Actuarial Certification Letter
78 Summary of Actuarial Assumptions and Funding Method
80 Probabilities of Separation Prior to Retirement
81 Schedule of Active Member Valuation Data
82
Schedule of Retirees and Beneficiaries Added to or
Removed from Rolls
83 Solvency Test
84 Actuarial Analysis of Financial Experience
84 Schedule of Funding Progress
85 Major Benefit Provisions of the Retirement System
86 History of Employer Net Contribution Rates
City of Fresno Employees Retirement System l ACTUARIAL
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 74
Actuarial Certification Letter
City of Fresno Employees Retirement System l ACTUARIAL
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 75
City of Fresno Employees Retirement System l ACTUARIAL
Actuarial Certification Letter Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 76
City of Fresno Employees Retirement System l ACTUARIAL
Actuarial Certification Letter Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 77
Summary of Actuarial Assumptions and Funding Method
These actuarial assumptions and methods based on June 30, 2024 data were adopted by the City of Fresno Employees
Retirement System (the System) Retirement Board on November 26, 2024, and are effective July 1, 2025.
Assumptions
Valuation Interest Rate:6.75%
Inflation:2.50%
Post-Retirement Mortality
(a) Service Retirement
Pub-2010 General Healthy Retiree Amount-Weighted
Mortality Table (separate tables for males and
females) with rates increased by 5%, projected
generationally with the two-dimensional mortality
improvement scale MP-2021.
(b) Beneficiaries
Beneficiaries not currently in Pay Status • Pub-2010
General Healthy Retiree Amount-Weighted Mortality
Table (separate tables for males and females) with
rates increased by 5%, projected generationally with
the two-dimensional mortality improvement scale
MP-2021.
Beneficiaries in Pay Status • Pub-2010 General
Contingent Survivor Amount-Weighted Mortality
Table (separate tables for males and females) with
rates increased by 5%, projected generationally with
the two-dimensional mortality improvement scale
MP-2021.
(c) Disability Retirement
Pub-2010 Non-Safety Disabled Retiree Amount-
Weighted Mortality Table (separate tables for males
and females) with rates decreased by 5%, projected
generationally with the two-dimensional mortality
improvement scale MP-2021.
The Pub-2010 mortality tables and adjustments as shown
above reasonably reflect the mortality experience as of the
measurement date. These mortality tables were adjusted
to future years using the generational projection to reflect
future mortality improvement between the measurement
date and those years.
Pre-Retirement Mortality
Based upon the Analysis of Actuarial Experience during
the period July 1, 2018 through June 30, 2021.
Withdrawal Rates
Based upon the Analysis of Actuarial Experience during
the period July 1, 2018 through June 30, 2021.
Disability Rates
Based upon the Analysis of Actuarial Experience during
the period July 1, 2018 through June 30, 2021.
Service Retirement Rates
Based upon the Analysis of Actuarial Experience during
the period July 1, 2018 through June 30, 2021.
Assets
Five-year smoothed recognition of realized and unrealized
capital gains and losses greater or lesser than the actuarial
assumed rate of return.
City of Fresno Employees Retirement System l ACTUARIAL
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 78
Summary of Actuarial Assumptions and Funding Method Continued
Funding Method
The System’s liability is being funded on the Entry Age
Normal Actuarial Cost method. Entry age is the age of the
member on their hire date. Normal Cost and Actuarial
Accrued Liability are compensation, as if the current
benefit formulas have always been in effect (i.e.,
“replacement life”).
The System’s funding policy for determining Total
Pension Liability (for funding purposes) uses a version of
the Entry Age method whereby the Actuarial Accrued
Liability is fully accrued when a member retires from
employment after participating in DROP (Deferred
Retirement Option Program). While for financial
reporting purposes only, in accordance with
Governmental Accounting Standards Board (GASB)
Statement No. 67 (GASB 67) provisions, for determining
Total Pension Liability, the Actuarial Accrued Liability is
fully accrued when a member either enters DROP or is
expected to elect DROP (See page 28 of the Financial
Section and pages 56 and 57 of the Required
Supplementary Information on the different actuarial
assumptions used for financial reporting versus funding
progress).
DROP Rates
1st year eligible 30% participation
2nd year eligible 15% participation
3rd and 4th year eligible 10% participation
5th year eligible 15% participation
6th year eligible 10% participation
Thereafter 0% participation
Members are assumed to remain in DROP for six years.
Marriage Rates
It is assumed that 80% of all male members and 55% of
all female members will be married at retirement.
Age of Spouse
Male members are three years older than their spouses.
Female members are two years younger than their
spouses.
Cost-of-Living Adjustment (COLA)
Assumption
2.50% per year; Retiree COLA increases due to
Consumer Price Index (CPI) are limited to maximum at
3.00% per year.
Ultimate Salary Scale
Salary Scale is made up of merit and longevity, and
inflation components. The inflation component is equal to
2.50%; plus 0.50% real across-the-board salary increase.
The merit and promotion component varies by service and
is illustrated below:
Years of Service
Merit and Promotion
Assumption (%)
< 1 year 8.50%
1 - 2 years 6.25%
2 - 3 years 4.75%
3 - 4 years 4.25%
4 - 5 years 3.50%
5 - 6 years 2.50%
6 - 7 years 1.75%
7 - 10 years 1.50%
10 - 15 years 1.25%
15 - 19 years 1.00%
20 & Over 0.75%
City of Fresno Employees Retirement System l ACTUARIAL
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 79
Probabilities of Separation Prior to Retirement
Mortality
Rate (%)
Age Male Female
25 0.03 0.01
30 0.04 0.01
35 0.05 0.02
40 0.07 0.04
45 0.10 0.06
50 0.15 0.08
55 0.22 0.12
60 0.32 0.19
65 0.47 0.30
70 0.70 0.49
All pre-retirement deaths are assumed to be non-service connected.
Disability
Rate (%)
Age All Members
20 0.00
25 0.00
30 0.00
35 0.30
40 0.30
45 0.30
50 0.70
55 1.20
60 3.10
65 3.10
70 7.00
All disabilities are assumed to be non-service connected.
Termination
Rate (%)
Years of Service
Age Less than 1 1 - 2 2 - 3 3 - 4 4 - 5 5 & Above
20 15.00 15.00 13.00 12.00 12.00 12.00
25 13.00 10.00 10.00 10.00 10.00 8.00
30 13.00 8.00 7.00 7.00 6.00 6.00
35 13.00 7.00 6.00 6.00 5.00 5.00
40 13.00 6.00 5.00 5.00 3.00 3.00
45 13.00 6.00 5.00 5.00 3.00 3.00
50+13.00 6.00 5.00 5.00 3.00 0.00
Members with less than five years of service: 90% of are assumed to elect a withdrawal of
contributions. The remaining members are assumed to elect a deferred vested benefit. No
termination is assumed after a member is assumed to retire.
Members with five or more years of service: 40% of are assumed to elect a withdrawal of
contributions. The remaining members are assumed to elect a deferred vested benefit. No
termination is assumed after a member is assumed to retire.
City of Fresno Employees Retirement System l ACTUARIAL
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 80
Schedule of Active Member Valuation Data
% Increase
Valuation Annual Annual (Decrease)
Date Active/DROP Number Payroll Average Pay in Average Pay
June 30, 2024 Active Members 2,759 $ 219,934,550 $ 79,715 9.8%
DROP Participants 204 18,432,604 90,356 11.2%
Totals 2,963 $ 238,367,154 $ 80,448
June 30, 2023 Active Members 2,447 $ 177,732,502 $ 72,633 4.0%
DROP Participants 247 20,074,374 81,273 6.2%
Totals 2,694 $ 197,806,876 $ 73,425
June 30, 2022 Active Members 2,157 $ 150,701,875 $ 69,866 1.6%
DROP Participants 274 20,973,759 76,547 4.6%
Totals 2,431 $ 171,675,634 $ 70,619
June 30, 2021 Active Members 2,009 $ 138,130,869 $ 68,756 1.6%
DROP Participants 304 22,241,215 73,162 1.6%
Totals 2,313 $ 160,372,084 $ 69,335
June 30, 2020 Active Members 1,952 $ 132,156,485 $ 67,703 4.6%
DROP Participants 336 24,198,036 72,018 5.4%
Totals 2,288 $ 156,354,521 $ 68,337
June 30, 2019 Active Members 1,890 $ 122,353,908 $ 64,738 4.9%
DROP Participants 338 23,103,904 68,355 3.9%
Totals 2,228 $ 145,457,812 $ 65,286
June 30, 2018 Active Members 1,812 $ 111,852,669 $ 61,729 3.4%
DROP Participants 351 23,093,533 65,794 3.3%
Totals 2,163 $ 134,946,202 $ 62,388
June 30, 2017 Active Members 1,715 $ 102,354,521 $ 59,682 4.4%
DROP Participants 370 23,560,592 63,677 3.9%
Totals 2,085 $ 125,915,113 $ 60,391
June 30, 2016 Active Members 1,592 $ 91,007,785 $ 57,166 (1.1%)
DROP Participants 366 22,428,051 61,279 1.3%
Totals 1,958 $ 113,435,836 $ 57,935
June 30, 2015 Active Members 1,524 $ 88,090,729 $ 57,802 (0.2%)
DROP Participants 364 22,015,866 60,483 0.3%
Totals 1,888 $ 110,106,595 $ 58,319
City of Fresno Employees Retirement System l ACTUARIAL
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 81
Schedule of Retirees and Beneficiaries Added to
or Removed from Rolls
Added to Rolls Removed from Rolls Rolls at Fiscal Year-End
Fiscal Year
Ended June 30 Number
Annual
Allowance Number
Annual
Allowance Number
Annual
Allowance
Average
Annual
Allowance
% Increase /
(Decrease)
in Retiree
Allowance
June 30, 2024 146 $1,978,905 (69)$(982,834)2,303 $81,555,616 $35,413 3.69
June 30, 2023 135 $1,745,057 (76)$(957,058)2,226 $76,024,703 $34,153 5.37
June 30, 2022 130 $1,999,381 (92)$(837,691)2,167 $70,239,143 $32,413 2.24
June 30, 2021 106 $1,787,137 (53)$(897,401)2,129 $67,497,485 $31,704 3.50
June 30, 2020 95 $1,796,078 (54)$(655,652)2,076 $63,591,967 $30,632 2.50
June 30, 2019 120 $1,905,246 (55)$(672,253)2,035 $60,814,434 $29,884 4.68
June 30, 2018 114 $1,570,066 (60)$(834,397)1,970 $56,241,911 $28,549 0.64
June 30, 2017 135 $1,458,929 (68)$(786,272)1,916 $54,350,851 $28,367 2.44
June 30, 2016 123 $1,578,451 (64)$(898,105)1,849 $51,198,523 $27,690 1.00
June 30, 2015 103 $1,402,353 (62)$(718,791)1,790 $49,072,063 $27,415 1.21
City of Fresno Employees Retirement System l ACTUARIAL
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 82
Solvency Test (In thousands)
Portion of Accrued Liabilities
Aggregate Accrued Liabilities for Covered by Reported Asset
Valuation
Date As Of
June 30
Active Member
Contributions
Retirees and
Beneficiaries
(Includes
Deferred Vested)
Active Members
(Employer
Financed Portion)
Actuarial
Valuation
Value of
Assets
Active
Member
Contributions
Retirees and
Beneficiaries
(Includes
Deferred
Vested)
Active
Members
(Employer
Financed
Portion)
6/30/2024 $127,682 $1,032,718 $297,347 $1,600,473 100%100%100%
6/30/2023 113,940 993,305 250,969 1,509,532 100%100%100%
6/30/2022 107,780 931,923 232,059 1,449,730 100%100%100%
6/30/2021 102,090 870,147 217,743 1,380,265 100%100%100%
6/30/2020 97,041 847,631 210,388 1,269,173 100%100%100%
6/30/2019 92,076 819,374 195,210 1,238,651 100%100%100%
6/30/2018 87,404 798,382 161,906 1,202,691 100%100%100%
6/30/2017 84,476 768,142 161,066 1,145,061 100%100%100%
6/30/2016 84,142 736,665 156,102 1,087,125 100%100%100%
6/30/2015 85,644 704,462 170,258 1,049,093 100%100%100%
City of Fresno Employees Retirement System l ACTUARIAL
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 83
Actuarial Analysis of Financial Experience
(Dollars in Millions)
Plan Years
2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Prior Valuation Actuarial Accrued Liability $1,358 $1,272 $1,190 $1,155 $1,107 $1,048 $1,014 $977 $960 $950
Expected Increase from Prior Valuation ——————————
Salary Increase (Greater) Less than Expected 21 8 4 (3)3 5 1 5 (7)(11)
Asset Return (Less) Greater than Expected ——————————
COLA Increase Greater (Less) than Expected 8 29 40 (9)(3)(8)(6)(7)(18)(18)
Other Experience 18 3 3 3 6 3 (2)3 (6)(2)
Economic Assumption Changes ——(10)——21 3 —8 —
Noneconomic Assumption Changes ——————————
Normal Cost 45 39 34 33 31 26 24 21 22 22
Interest 90 85 82 80 76 74 72 70 71 70
Payments (83)(78)(71)(69)(65)(62)(58)(55)(52)(51)
Change in Valuation Programs and Methods ————————(1)—
Ending Actuarial Accrued Liability $1,457 $1,358 $1,272 $1,190 $1,155 $1,107 $1,048 $1,014 $977 $960
Schedule of Funding Progress
(Dollars in Millions)
(6)
(1)(2)(4)Prefunded /
Actuarial Actuarial (3)Prefunded /(5)(Unfunded AAL)
Actuarial Valuation Accrued Percentage (Unfunded Annual Percentage of
Valuation Value of Liability Funded AAL)Covered Covered Payroll
As of June 30 Assets (AAL)(1) / (2)(2) - (1)Payroll [(2) - (1)] / (5)
2024 $1,600 $1,458 109.8%$143 $238 59.90%
2023 $1,510 $1,358 111.1%$151 $198 76.50%
2022 $1,450 $1,272 114.0%$178 $172 103.70%
2021 $1,380 $1,190 116.0%$190 $160 118.70%
2020 $1,269 $1,155 109.9%$114 $156 73.00%
2019 $1,239 $1107 111.9%$132 $145 90.70%
2018 $1,203 $1048 114.8%$155 $135 114.90%
2017 $1,145 $1014 113.0%$131 $126 104.30%
2016 $1,087 $977 111.3%$110 $113 97.20%
2015 $1,049 $960 109.2%$89 $110 80.60%
City of Fresno Employees Retirement System l ACTUARIAL
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 84
Major Benefit Provisions of the Retirement System
ELIGIBLE EMPLOYEES
All non-Fire and Police employees who enter service after July
1, 1952, and are certified from a civil service list for permanent
employment.
FINAL AVERAGE SALARY (FAS)
Highest three consecutive-year average using the rate of pay in
effect at the time of retirement.
NORMAL RETIREMENT
Requirement: age 55 and 5 years of service.
Benefit: Sum of (1) and (2) times (3)
(1) 2% of FAS times years of service, not-to-exceed
25 years
(2) 1% of FAS times years of service in excess of 25
years
(3)RETIREMENT AGE FACTOR TABLE
Age Factor Age Factor
55 1.000 61 1.140
56 1.020 62 1.180
57 1.040 63 1.220
58 1.060 64 1.260
59 1.080 65 1.300
60 1.100 Add .01 for every
quarter after age 65
EARLY RETIREMENT PROVISION
An employee who is age 50 with 5 years of continuous service
may elect an early retirement and shall have his or her
retirement allowance reduced by the early retirement actuarial
adjustment factor.
DEFERRED RETIREMENT OPTION PROGRAM (DROP)
An employee who is age 55 with 5 years of service may enter
DROP. The eligibility age may be reduced to age 50 with 5
years of service if the employee elects an early retirement.
Retirement amount is calculated and monthly deposits are made
to the employee’s DROP account while the employee continues
to work up to maximum of 10 years.
DISABILITY RETIREMENT
Requirement: 10 years of service.
Benefit: 1.8 percent times FAS times years of service, if exceeds
1/3 of FAS; or 33-1/3%, or service retirement, if higher.
MEMBER CONTRIBUTIONS RATES
Basic rates are based on a formula reflecting the age at entry into
the System. The rates are such as to provide an average annuity,
at age 55, of 1/150 of FAS for each of the first 25 years of
service, plus 1/300 of FAS for each year of service after 25.
Member cost-of-living rates are designed to pay for one-half of
the future cost-of-living increases.
DEATH BEFORE RETIREMENT
A. Before eligible to retire for disability (less than 5 years):
(1) One month's salary for each year of service, not-
to-exceed six months.
(2) Return of contributions with interest.
B. While eligible for service retirement:
Fifty percent (50%) of service retirement benefit to
eligible beneficiary
C. With 5 or more years:
Fifty percent (50%) of service retirement benefit formula
at age 55, based on years of service at death.
DEATH AFTER RETIREMENT
Fifty percent (50%) of the member’s allowance continued to
eligible spouse for life.
WITHDRAWAL OF BENEFITS
If less than five years of service, return of contributions. If more
than five years of service, right to have vested deferred
retirement benefit at normal retirement date.
POST RETIREMENT SUPPLEMENTAL BENEFIT (PRSB)
On August 27, 1998, the City Council adopted the Post
Retirement Supplemental Benefit (PRSB) Program which is
intended to provide assistance to retirees to pay for various post-
retirement expenses. Annually, after an actuarial study has been
performed, the Retirement Board will review the availability of
surplus earnings in the System and determine whether a benefit
can be paid to eligible PRSB recipients. If a surplus is declared
by the Board, PRSB benefit payments will be calculated for
eligible recipients and payments for the following calendar year
will begin in January.
COST-OF-LIVING BENEFITS
Based on the percentage change in Consumer Price Index (U.S.
city-average for urban wage earners and clerical works –all
items), limited to a five percent (5%) maximum change per year
each July 1.
City of Fresno Employees Retirement System l ACTUARIAL
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 85
History of Employer Net Contribution Rates
Employer Normal Employer Net Contribution
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
Fiscal Year Ending June 30 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Employer Normal 12.03 % 12.06 % 12.26 % 11.69 % 11.66 % 11.70 % 13.37 % 13.33 % 13.23 % 14.15 %
Prefunded Liability/Prepaid Contributions 0.38 % 0.02 % -0.51 % 0.30 % 1.08 % 0.59 % 0.34% -0.02 % 1.26 % 0.77 %
Employer Net Contribution 11.65 % 12.04 % 12.77 % 11.39 % 10.58 % 11.11 % 13.03 % 13.35 % 11.97 % 13.38 %
City of Fresno Employees Retirement System l ACTUARIAL
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 86
To create an environment
in which Board Members
can maximize their
performance as trustees.
To improve business
processes and our delivery
of services provided to
members and retirees.
To improve
communications with
members, retirees and the
employer.
STATISTICAL
88 Statistical Section Review
89 Schedule of Changes in Fiduciary Net Position
90 Schedule and Graph of Additions by Source
91 Schedule and Graph of Deductions by Type
92 Membership Information
City of Fresno Employees Retirement System l STATISTICAL
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 87
Statistical Section Review
This section provides additional historical perspective, context, and detail in order to provide a more comprehensive
understanding of this year’s financial statements, note disclosures, and supplementary information which covers the benefits
provided by the City of Fresno Employees Retirement System (System).
It also provides multi-year trend of financial and operation information to facilitate comprehensive understanding of how the
organization’s financial position and performance has changed over time.
More specifically, the financial and operating information provides contextual data for the System’s net position, benefits,
refunds, contribution rates and different types of retirement benefits.
The financial and operating trend information is located on the following pages.
City of Fresno Employees Retirement System l STATISTICAL
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 88
Schedule of Changes in Fiduciary Net Position
Last Ten Fiscal Years 2015 - 2024
(Dollars in Millions)
2024 2023 2022 2021 2020
Additions
Employer Contributions $ 28.6 $ 22.2 $ 22.0 $ 20.1 $ 16.6
Employee Contributions 18.8 14.9 15.5 13.7 11.0
Investment Income (Loss) 169.9 164.0 (132.6) 407.9 20.1
Total Additions 217.3 201.1 (95.1) 441.7 47.7
Deductions
Benefit Payments $ 81.6 $ 76.0 $ 70.2 $ 67.5 $ 63.6
Post Retirement Supplemental Benefits — — — — —
Refunds 1.7 1.9 1.6 1.7 0.9
Administrative 2.3 2.1 2.0 2.1 1.7
Total Deductions 85.6 80.0 73.8 71.3 66.2
Change in Fiduciary Net Position $ 131.7 $ 121.1 $ (168.9) $ 370.4 $ (18.5)
2019 2018 2017 2016 2015
Additions
Employer Contributions $ 14.6 $ 14.6 $ 15.2 $ 13.1 $ 12.3
Employee Contributions 10.5 10.3 10.2 9.1 8.8
Investment Income (Loss) 69.4 109.0 162.4 5.0 33.3
Total Additions 94.5 133.9 187.8 27.2 54.4
Deductions
Benefit Payments 60.8 56.2 54.4 51.2 49.1
Post Retirement Supplemental Benefits — — — — —
Refunds 1.3 1.4 1.2 1.3 1.5
Administrative 1.7 1.6 1.4 1.3 1.1
Total Deductions 63.8 59.2 57.0 53.8 51.7
Change in Fiduciary Net Position $ 30.7 $ 74.7 $ 130.8 $ (26.6) $ 2.7
City of Fresno Employees Retirement System l STATISTICAL
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 89
Schedule and Graph of Additions by Source (In Thousands)
Last Ten Fiscal Years 2015 - 2024
EMPLOYER CONTRIBUTIONS EMPLOYEE CONTRIBUTIONS
INVESTMENT INCOME (LOSS)
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
$-200,000
$-100,000
$0
$100,000
$200,000
$300,000
$400,000
$500,000
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
EMPLOYER CONTRIBUTIONS $ 12,327 $ 13,060 $ 15,205 $ 14,609 $ 14,627 $ 16,554 $ 20,144 $ 22,017 $ 22,236 $ 28,621
EMPLOYEE CONTRIBUTIONS 8,750 9,098 10,181 10,329 10,516 11,028 13,750 15,493 14,894 18,833
INVESTMENT INCOME (LOSS)33,309 5,089 162,376 108,916 69,389 20,108 407,811 (132,626)164,015 169,858
TOTAL $ 54,386 $ 27,247 $ 187,762 $ 133,854 $ 94,532 $ 47,690 $ 441,705 $ (95,116) $ 201,145 $ 217,312
City of Fresno Employees Retirement System l STATISTICAL
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 90
Schedule and Graph of Deductions by Type (In Thousands)
Last Ten Fiscal Years 2015 - 2024
PROFESSIONAL & ADMINISTRATIVE REFUNDS
SURVIVORS NON-SERVICE DISABILITY
SERVICE DISABILITY SERVICE RETIREMENTS
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
$0
$20,000
$40,000
$60,000
$80,000
$100,000
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
SERVICE RETIREMENTS $ 40,261 $ 42,031 $ 44,883 $ 46,548 $ 50,237 $ 52,798 $ 55,989 $ 58,624 $ 64,393 $ 68,999
SERVICE DISABILITY 2,358 2,625 2,915 3,027 2,913 3,098 3,888 3,551 3,662 3,890
NON-SERVICE DISABILITY 1,579 1,744 1,602 1,654 1,344 1,370 1,304 1,731 1,313 1,320
SURVIVORS 4,874 4,799 4,951 5,013 6,320 6,326 6,316 6,333 6,657 7,347
REFUNDS 1,474 1,330 1,199 1,424 1,330 928 1,749 1,645 1,849 1,647
PROFESSIONAL &
ADMINISTRATIVE 1,071 1,346 1,389 1,619 1,663 1,748 2,058 2,050 2,145 2,317
TOTAL $ 51,617 $ 53,875 $ 56,939 $ 59,285 $ 63,807 $ 66,268 $ 71,304 $ 73,934 $ 80,019 $ 85,520
City of Fresno Employees Retirement System l STATISTICAL
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 91
Schedule of Average Benefit Payments
Years of Credited Service Fiscal Year
Average/
New
Retirement Effective Dates 5-10 10-15 15-20 20-25 25-30 30+Retirees
Period 7/1/23 to 6/30/24*
Average Monthly Pension Benefits $ 1,493 $ 1,923 $ 2,657 $ 2,753 $ 3,565 $ 4,539 $ 2,822
Average Monthly DROP Payment — 93 1,410 1,547 1,953 2,538 1,257
Average Final Average Salary 7,451 6,308 6,174 5,119 6,108 5,885 6,174
Number of New Retired Members 13 18 37 16 18 5 107
Period 7/1/22 to 6/30/23*
Average Monthly Pension Benefits $ 879 $ 1,676 $ 2,515 $ 2,712 $ 2,899 $ 2,824 $ 2,251
Average Monthly DROP Payment — 1,029 1,269 1,599 1,931 2,173 1,334
Average Final Average Salary 5,888 5,224 5,787 5,356 4,766 3,412 5,072
Number of New Retired Members 19 24 28 21 14 3 109
Period 7/1/21 to 6/30/22*
Average Monthly Pension Benefits $ 1,474 $ 1,542 $ 2,188 $ 2,845 $ 3,631 $ 4,746 $ 2,738
Average Monthly DROP Payment — 271 935 1,377 2,207 2,213 1,167
Average Final Average Salary 9,611 4,978 5,427 5,677 6,344 6,956 6,499
Number of New Retired Members 15 15 26 23 14 8 101
Period 7/1/20 to 6/30/21*
Average Monthly Pension Benefits $ 1,387 $ 1,932 $ 2,079 $ 2,836 $ 3,198 $ 4,063 $ 2,583
Average Monthly DROP Payment — 860 924 2,006 2,471 2,756 1,503
Average Final Average Salary 8,449 5,748 5,524 5,500 5,205 6,514 6,157
Number of New Retired Members 11 17 24 22 12 11 97
Period 7/1/19 to 6/30/20*
Average Monthly Pension Benefits $ 1,142 $ 1,630 $ 2,054 $ 2,627 $ 3,123 $ 3,234 $ 2,302
Average Monthly DROP Payment 214 321 1,041 2,048 2,685 3,223 1,589
Average Final Average Salary 7,385 5,322 5,029 5,727 5,243 5,238 5,657
Number of New Retired Members 8 25 21 14 6 5 79
*The Schedule of Average Benefit Payments includes information in accordance with GASB Statement No. 44 for the periods
from July 1, 2016 through June 30, 2024. Since implementing PG3 - our new Pension Administration System commencing July
1, 2015, we are now able to capture information prospectively that is necessary for the System to comply with GASB 44
reporting. The System will provide 10 years in the format required by GASB 44 as information becomes available.
City of Fresno Employees Retirement System l STATISTICAL
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 92
Schedule of Average Benefit Payments (Continued)
Years of Credited Service Fiscal Year
Average/
New
Retirement Effective Dates 5-10 10-15 15-20 20-25 25-30 30+Retirees
Period 7/1/18 to 6/30/19*
Average Monthly Pension Benefits $ 1,477 $ 1,791 $ 1,927 $ 2,611 $ 3,447 $ 3,267 $ 2,420
Average Monthly DROP Payment — 218 539 1,627 2,323 2,389 1,183
Average Final Average Salary 5,817 6,114 4,750 5,114 6,243 4,825 5,477
Number of New Retired Members 8 29 22 16 13 11 99
Period 7/1/17 to 6/30/18*
Average Monthly Pension Benefits $ 822 $ 1,492 $ 1,777 $ 2,820 $ 2,462 $ 3,560 $ 2,156
Average Monthly DROP Payment — 277 594 1,549 1,569 2,473 1,077
Average Final Average Salary 5,746 5,217 4,478 6,058 4,559 5,679 5,290
Number of New Retired Members 7 18 22 22 10 10 89
Period 7/1/16 to 6/30/17*
Average Monthly Pension Benefits $ 976 $ 1,446 $ 2,448 $ 2,624 $ 2,851 $ 3,648 $ 2,332
Average Monthly DROP Payment 0 153 901 1,590 1,989 1,718 1,059
Average Final Average Salary 5,707 4,938 5,905 5,403 4,333 5,531 5,303
Number of New Retired Members 12 26 23 20 8 9 98
Period 7/1/15 to 6/30/16*
Average Monthly Pension Benefits $ 938 $ 1,567 $ 1,847 $ 2,606 $ 2,596 $ 2,402 $ 1,993
Average Monthly DROP Payment 108 227 542 1,698 1,263 1,476 886
Average Final Average Salary 5,576 5,480 5,048 5,325 4,961 4,395 5,131
Number of New Retired Members 14 23 24 16 20 11 108
Period 7/1/14 to 6/30/15
Average Monthly Pension Benefits $ 912 $ 1,409 $ 2,173 $ 2,509 $ 5,125 $ 5,039 $ 2,861
Number of New Retired Members 13 11 25 6 16 6 77
*The Schedule of Average Benefit Payments includes information in accordance with GASB Statement No. 44 for the periods
from July 1, 2016 through June 30, 2024. Since implementing PG3 - our new Pension Administration System commencing July
1, 2015, we are now able to capture information prospectively that is necessary for the System to comply with GASB 44
reporting. The System will provide 10 years in the format required by GASB 44 as information becomes available.
City of Fresno Employees Retirement System l STATISTICAL
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 93
Retirees by Type of Benefit
As of June 30, 2024
Amount of Number of Type of Retirement*
Monthly Benefit Retirees 1 2 3
$1 - $1,000 331 237 1 93
$1,001 - $2,000 612 380 67 165
$2,001 - $3,000 500 388 54 58
$3,001 - $4,000 333 289 24 20
$4,001 - $5,000 190 176 7 7
$5,001 - $6,000 143 134 5 4
$6,001 - $7,000 82 76 5 1.00
> $7,000 112 111 1.00 —
Total 2,303 1,791 164 348
*Type of Retirement
1 - Service Retiree
2 - Disability Retiree
3 - Beneficiary/Continuant/Survivor
Amount of Number of Option Selected**
Monthly Benefit Retirees Unmodified Option 1 Option 2 Option 3
$1 - $1,000 331 183 71 63 14
$1,001 - $2,000 612 277 172 123 40
$2,001 - $3,000 500 208 110 129 53
$3,001 - $4,000 333 140 85 87 21
$4,001 - $5,000 190 69 47 53 21
$5,001 - $6,000 143 48 44 37 14
$6,001 - $7,000 82 37 23 16 6
> $7,000 112 42 20 38 12
Total 2,303 1,004 572 546 181
**Option Selected
Unmodified - Beneficiary receives 50% of the member's allowance
Option 1 - Beneficiary receives lump sum of member's unused contributions
Option 2 - Beneficiary receives 100% of member's reduced monthly benefit
Option 3 - Beneficiary receives 75% of member's reduced monthly benefit
City of Fresno Employees Retirement System l STATISTICAL
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 94
Schedule and Graph of Pension Benefit Payments
Deductions by Type
Last Ten Fiscal Years 2015 - 2024
(Dollars in Millions)
Service Retiree Benefits Disability Retiree Benefits Separation
Death Benefits Misc
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
$0
$20
$40
$60
$80
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Service Retiree Benefits $45.1 $46.8 $49.9 $51.5 $56.6 $59.1 $62.3 $65.0 $71.0 $76.4
Disability Retiree Benefits 3.9 4.4 4.5 4.7 4.2 4.5 5.2 5.3 5.0 5.2
Separation 1.3 1.1 1.1 1.4 1.2 0.8 1.3 1.2 1.8 1.5
Death Benefits 0.2 0.2 ——0.1 0.1 0.4 0.4 0.1 0.1
Misc ——————————
Total Benefit Deductions $50.5 $52.5 $55.5 $57.6 $62.1 $64.5 $69.2 $71.9 $77.9 $83.2
City of Fresno Employees Retirement System l STATISTICAL
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 95
Schedule and Graph of Active Vested, Active Non-Vested and Deferred
Membership History
Last Ten Fiscal Years 2015 - 2024
ACTIVE VESTED ACTIVE NON-VESTED DEFERRED
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
0
250
500
750
1000
1250
1500
1750
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
ACTIVE VESTED 1,517 1,462 1,405 1,285 1,266 1,295 1,319 1,384 1,410 1,458
ACTIVE NON-VESTED 376 492 674 887 965 993 994 1,051 1,284 1,509
DEFERRED 236 261 251 251 247 243 248 202 213 240
TOTAL 2,129 2,215 2,330 2,423 2,478 2,531 2,561 2,637 2,907 3,207
City of Fresno Employees Retirement System l STATISTICAL
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 96
Schedule and Graph of Retirees Pension Benefit Payments
by Type of Benefit
Last Ten Fiscal Years 2015 - 2024
SERVICE RETIREMENTS SERVICE DISABILITY
NON-SERVICE DISABILITY SURVIVORS
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
0
75
150
225
300
375
450
525
600
675
750
825
900
975
1050
1125
1200
1275
1350
1425
1500
1575
1650
1725
1800
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
SERVICE RETIREMENTS 1,342 1,398 1,454 1,498 1,551 1,583 1,633 1,673 1,730 1,791
SERVICE DISABILITY 71 82 89 92 95 99 104 105 109 111
NON-SERVICE DISABILITY 68 67 63 63 65 62 61 57 55 53
SURVIVORS 302 302 310 317 324 332 331 332 332 348
TOTAL 1,783 1,849 1,916 1,970 2,035 2,076 2,129 2,167 2,226 2,303
City of Fresno Employees Retirement System l STATISTICAL
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 97
Summary of Active Participants
NUMBER OF PENSIONABLE ANNUAL NET CHANGE IN
YEAR MEMBERS PAYROLL AVERAGE SALARY AVERAGE SALARY
2024 2,967 $213,088,002 $71,819 3.90%
2023 2,694 $186,218,911 $69,124 2.23%
2022 2,435 $164,642,390 $67,615 1.53%
2021 2,313 $154,030,657 $66,593 1.98%
2020 2,288 $149,402,670 $65,298 5.26%
2019 2,231 $138,395,785 $62,033 4.88%
2018 2,172 $128,461,461 $59,144 3.32%
2017 2,079 $119,006,918 $57,242 3.05%
2016 1,954 $108,541,068 $55,548 (0.63%)
2015 1,893 $105,820,382 $55,901 0.46%
Summary of Retirees
ANNUAL NET CHANGE
ANNUAL AVERAGE IN BENEFITS
NUMBER BENEFITS TO ALLOWANCE TO
YEAR OF RETIREES PARTICIPANTS (INDIVIDUAL)PARTICIPANTS
2024 2,303 $81,555,616 $35,413 3.69%
2023 2,226 $76,024,703 $34,153 5.37%
2022 2,167 $70,239,143 $32,413 2.24%
2021 2,129 $67,497,485 $31,704 3.50%
2020 2,076 $63,591,967 $30,632 2.50%
2019 2,035 $60,814,434 $29,884 4.68%
2018 1,970 $56,241,911 $28,549 0.64%
2017 1,916 $54,350,851 $28,367 2.44%
2016 1,849 $51,198,523 $27,690 0.61%
2015 1,783 $49,072,063 $27,522 1.14%
City of Fresno Employees Retirement System l STATISTICAL
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 98
Member and City Contribution Rates
Last Ten Fiscal Years 2015 - 2024
Member Rates City Contribution Rates
As of June 30 Basic at Entry Age Total
City Rate
Less
Prefunded Actuarial
Accrued Liability
(PAAL)
Net City
Contribution
RateFiscal Year Valuation Date 20 25 30 Basic COLA
June 30, 2024 June 30, 2022 5.9%6.88%8.21%11.4%2.75%14.15%(0.77%)13.38%
June 30, 2023 June 30, 2021 5.21%6.11%7.33%10.41%2.82%13.23%(1.26%)11.97%
June 30, 2022 June 30, 2020 6.09%7.15%8.57%10.51%2.82%13.33%0.02%13.35%
June 30, 2021 June 30, 2019 5.78%6.79%8.13%10.55%2.82%13.37%(0.34%)13.03%
June 30, 2020 June 30, 2018 4.7%5.56%6.7%9.09%2.61%11.70%(0.59%)11.11%
June 30, 2019 June 30, 2017 4.84%5.72%6.89%9.14%2.52%11.66%(1.08%)10.58%
June 30, 2018 June 30, 2016 5.12%6.05%7.29%9.18%2.51%11.69%(0.3%)11.39%
June 30, 2017 June 30, 2015 5.69%6.69%7.99%9.5%2.76%12.26%0.51%12.77%
June 30, 2016 June 30, 2014 5.69%6.68%7.98%9.31%2.75%12.06%(0.02%)12.04%
June 30, 2015 June 30, 2013 5.69%6.68%7.98%9.02%3.01%12.03%(0.38%)11.65%
Data Source: Annual Actuarial Valuation Reports
Economic Assumptions and Funding Method
Last Ten Fiscal Years 2015 - 2024
Valuation Date
as of Salary Cost-of-Living Inflation Funding
June 30 Interest Scale Adjustment (COLA)Component Method
June 30, 2024 6.75%.75- 8.5%2.50%2.50%Entry Age Normal
June 30, 2023 6.75%.75 - 8.5%2.50%2.50%Entry Age Normal
June 30, 2022 6.75%.50 - 8.5%2.50%2.50%Entry Age Normal
June 30, 2021 7.00%.50 - 8.0%2.75%2.75%Entry Age Normal
June 30, 2020 7.00%.50 - 8.0%2.75%2.75%Entry Age Normal
June 30, 2019 7.00%.25 - 8.0%2.75%2.75%Entry Age Normal
June 30, 2018 7.25%.25 - 8.0%3.00%3.00%Entry Age Normal
June 30, 2017 7.25%.25 - 8.0%3.00%3.00%Entry Age Normal
June 30, 2016 7.25%.25 - 8.0%3.00%3.00%Entry Age Normal
June 30, 2015 7.50%.50 - 8.0%3.25%3.25%Entry Age Normal
Source: The Segal Company June 30, 2024, Actuarial Valuation Report
City of Fresno Employees Retirement System l STATISTICAL
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 99
Benefits and Withdrawals Paid
Last Ten Fiscal Years 2015 - 2024
(In Thousands)
BENEFITS PRSB WITHDRAWALS
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
$0
$10000
$20000
$30000
$40000
$50000
$60000
$70000
$80000
$90000
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
BENEFITS $ 49,072 $ 51,199 $ 54,351 $ 56,242 $ 60,814 $ 63,592 $ 67,497 $ 70,239 $ 76,025 $ 81,556
PRSB — — — — — — — — — —
WITHDRAWALS 1,474 1,330 1,199 1,424 1,330 927 1,749 1,645 1,848 1,646
TOTAL 50,546 52,529 55,550 57,666 62,144 64,519 69,246 71,884 77,873 83,202
City of Fresno Employees Retirement System l STATISTICAL
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 100
Average Monthly Benefits to Retirees
Last Ten Fiscal Years 2015 - 2024
(In Thousands)
Average Monthly Benefit Average Monthly PRSB
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
$0
$500
$1000
$1500
$2000
$2500
$3000
Average Monthly 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Benefit $2,294 $2,307 $2,364 $2,379 $2,490 $2,553 $2,642 $2,701 $2,846 $2,951
PRSB ——————————
Total Average Monthly $2,294 $2,307 $2,364 $2,379 $2,490 $2,553 $2,642 $2,701 $2,846 $2,951
City of Fresno Employees Retirement System l STATISTICAL
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 101
EXPECTATION OF LIFE
(Age and Service Retirees)
Years of Age
Male Female
25 30 35 40 45 50 55 60 65 70
.00
.20
.40
.60
.80 Separation Rates Prior to Retirement
Due to Death*
Rate %
Age Male Female
25 0.03 0.01
30 0.04 0.01
35 0.05 0.02
40 0.07 0.04
45 0.10 0.06
50 0.15 0.08
55 0.22 0.12
60 0.32 0.19
65 0.47 0.30
70 0.70 0.49
*All pre-retirement deaths are assumed to be non-
service connected.
EXPECTATION OF LIFE
(Disabled Retirees)
Years of Age
20 25 30 35 40 45 50 55 60 65 70
.00
2.00
4.00
6.00
8.00 Separation Rates Prior to Retirement
Due to Disability
Rate %
Age Rate (%)
20 0.00
25 0.00
30 0.00
35 0.30
40 0.30
45 0.30
50 0.70
55 1.20
60 3.10
65 3.10
70 7.00
City of Fresno Employees Retirement System l STATISTICAL
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 102
To attract, develop and
retain competent and
professional staff.
To achieve and
maintain superior
investment
performance on a risk
controlled basis
measured by the
Public Fund Universe.
COMPLIANCE
104 Independent Auditor’s Report on Internal Control Over
Financial Reporting and On Compliance and Other Matters
Based on an Audit of Financial Statements Performed in
Accordance with Government Auditing Standards
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 103
Independent Auditor’s Internal Control Letter
City of Fresno Employees Retirement System l COMPLIANCE
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 104
Independent Auditor’s Internal Control Letter Continued
City of Fresno Employees Retirement System l COMPLIANCE
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 105
City of Fresno Fire and Police Retirement System
A Pension Trust Fund of the City of Fresno (California)
ANNUAL COMPREHENSIVE
FINANCIAL REPORT
FOR FISCAL YEARS ENDED JUNE 30, 2024 AND 2023
Issued by:
Robert T. Theller
Retirement Administrator
Kathleen Riley Brown
Assistant Retirement Administrator
2828 Fresno Street Suite 201, Fresno, CA 93721-1327
(559) 621-7080 / Retire@Fresno.gov
www.CFRS-CA.org
TABLE OF CONTENTS
Introduction Section
Letter of Transmittal ..................................................................................................................................................................................
i
City of Fresno Fire and Police Retirement System Board Members ........................................................................................................
ix
City of Fresno Retirement Office Staff ........................................................................................................................................ .............x
Administration of the System ....................................................................................................................................................................
xi
Organizational Structure ............................................................................................................................................................................ xii
Professional Services and Consultants ......................................................................................................................................................
xiii
Investment Portfolio Managers ................................................................................................................................................................. xiv
Certificate of Achievement for Excellence in Financial Reporting .......................................................................................................... xv
Financial Section
Independent Auditor’s Report ................................................................................................................................................................... 2
Management’s Discussion and Analysis ................................................................................................................................................... 5
Basic Financial Statements
Statement of Fiduciary Net Position ......................................................................................................................................................... .18
Statement of Changes in Fiduciary Net Position ....................................................................................................................................... 19
Notes to the Basic Financial Statements ................................................................................................................................................... .20
Required Supplementary Information
Schedule of Changes in the Net Pension Liability ............................................................................................................................... 57
Schedule of Employer Contributions ...................................................................................................................................................
59
Schedule of Investment Returns .......................................................................................................................................................... .59
Notes to the Required Supplementary Information ............................................................................................................................. .60
Other Supplementary Information
Schedule of Administrative Expenses ..................................................................................................................................................
62
Schedule of Investment Management Expenses ..................................................................................................................................
63
Schedule of Payments to Consultants .................................................................................................................................................. .63
Investment Section
Investment Report from the Retirement Administrator ............................................................................................................................. 65
Investment Consultant’s Report ................................................................................................................................................................
70
Investment Results (Gross and Net of Fees) ............................................................................................................................................. 72
Target Asset Allocation and Actual Asset Allocation ...............................................................................................................................
74
Largest Stock and Bond Holdings .............................................................................................................................................................
76
Schedule of Commissions ......................................................................................................................................................................... 77
Investment Summary .................................................................................................................................................................................
77
City of Fresno Fire and Police Retirement System
Actuarial Section
Actuarial Certification Letter .................................................................................................................................................................... .79
Summary of Actuarial Assumptions and Funding Method ....................................................................................................................... 82
Probabilities of Separation Prior to Retirement ........................................................................................................................................ .84
Schedule of Active Member Valuation Data .............................................................................................................................................85
Schedule of Retirees and Beneficiaries Added to or Removed from Rolls ...............................................................................................86
Solvency Test ............................................................................................................................................................................................87
Actuarial Analysis of Financial Experience ..............................................................................................................................................88
Schedule of Funding Progress ...................................................................................................................................................................88
Major Benefit Provisions of the Retirement System .................................................................................................................................89
History of Employer Net Contribution Rates ............................................................................................................................................91
Statistical Section
Statistical Section Review..........................................................................................................................................................................94
Schedule of Changes in Fiduciary Net Position ........................................................................................................................................ 95
Schedule and Graph of Additions by Source .............................................................................................................................................96
Schedule and Graph of Deductions by Type .............................................................................................................................................97
Membership Information
Schedule of Average Benefit Payments ...............................................................................................................................................98
Retirees by Type of Benefit ..................................................................................................................................................................100
Schedule and Graph of Pension Benefit Payments Deductions by Type .............................................................................................101
Schedule and Graph of Active Vested, Active Non-Vested and Deferred Membership History .........................................................102
Schedule and Graph of Retirees Pension Benefit Payments by Type of Benefit .................................................................................103
Summary of Active Participants and Retirees ......................................................................................................................................104
Member and City Contribution Rates .................................................................................................................................................. 105
Economic Assumptions and Funding Method .....................................................................................................................................106
Benefits and Withdrawals Paid ............................................................................................................................................................ 107
Average Monthly Benefits to Retirees .................................................................................................................................................108
Expectation of Life (Age and Service Retirees) ..................................................................................................................................109
Expectation of Life (Disabled Retirees) ...............................................................................................................................................109
Compliance Section
Independent Auditor’s Report on Internal Control ....................................................................................................................................111
Over Financial Reporting and on Compliance
and Other Matters Based on an Audit of
Financial Statements Performed in Accordance
With Government Auditing Standards
City of Fresno Fire and Police Retirement System
MISSION STATEMENT
To protect and provide System benefits through the highest
quality delivery of service for our members and the employer,
prudently fulfilling our fiduciary duties of investment and
conservation of Trust assets.
BOARD AND STAFF COMMITMENT
We promise to carry out our Mission through a competent,
professional, impartial and open decision-making process. In
providing benefits and services, all persons will be treated
fairly, with courtesy and respect. Assets will be invested and
administered to balance the need to control risk with superior
performance. We expect excellence in all activities. We will
also be accountable and act in accordance with the law.
GOALS
• To create an environment in which Board Members can
maximize their performance as trustees.
• To improve business processes and our delivery of services
provided to members and retirees.
• To improve communications with members, retirees and the
employer.
• To attract, develop and retain competent and professional staff.
• To achieve and maintain superior investment performance on a
risk controlled basis measured by the Public Fund Universe.
City of Fresno Fire and Police Retirement System
The Fire and Police
Retirement System was
established on July 1,
1955 and is maintained
and governed by Articles 3
and 4 of the Fresno
Municipal Code.
The Fire and Police
Retirement System (the
System) provides
retirement allowances to
all full-time sworn safety
members employed by the
City of Fresno.
INTRODUCTION
i Letter of Transmittal
ix City of Fresno Fire and Police Retirement System Board Members
x City of Fresno Retirement Administrative Staff
xi Administration of the System
xii Organizational Structure
xiii Professional Services and Consultants
xiv Investment Portfolio Managers
xv Certificate of Achievement for Excellence in Financial Reporting
Letter of Transmittal
Robert T. Theller, Esq.
RETIREMENT ADMINISTRATOR
Dear Retirement Board Members and System Members:
As Retirement Administrator of the City of Fresno Fire and Police Retirement System (the System), it is with great pleasure
that I submit the Annual Comprehensive Financial Report (ACFR) for the fiscal years ended June 30, 2024 and 2023.
The past fiscal year demonstrated resilience and growth despite facing challenges. Real Gross Domestic Product (GDP) grew
at a healthy pace, exceeding expectations and driven largely by consumer spending. This strong consumer activity was fueled
by a continued tight labor market with low unemployment and increasing wages. Inflation, a major concern in the previous
year, gradually cooled throughout the fiscal year, responding to the Federal Reserve's interest rate hikes.
While the Federal Reserve's actions were successful in slowing inflation, they also raised concerns about a potential
economic slowdown. These fears did not fully materialize; although, some sectors, like housing, experienced a noticeable
cool down. Global economic uncertainties, including the ongoing war between Russia and Ukraine, and persistent supply
chain issues, contributed to some volatility in the market.
The U.S. economy successfully navigated a complex landscape in Fiscal Year 2024, overcoming challenges such as lingering
pandemic effects, global economic headwinds, and government debt. This resilience was largely due to strong consumer
spending and the gradual easing of inflation, suggesting continued growth in the coming year.
Despite the complex economic environment of Fiscal Year 2024, the System demonstrated resilience and maintained its
strong financial footing. This stability is a testament to its long-term focus. Notably, the System concluded the fiscal year
fully funded on both a fair value and actuarial valuation basis at 118.0 percent and 114.9 percent, respectively. From a long-
term perspective, the System is positioned to provide a solid rate of return that is equal to or better than the respective asset
classes market indices even as we enter yet another year of uncertainties in the global economic and financial markets. The
Retirement Board (the Board) has carefully managed the investment portfolio throughout the global pandemic, and we
remain confident that new investment opportunities will arise and the Board, with the required amount of due diligence and
vigilance, will position the System’s investments for future long-term growth.
City of Fresno Fire and Police Retirement System l INTRODUCTION
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 i
The System’s returns for the last two years have been mixed at 10.59 percent and 9.77 percent for the fiscal years ended June
30, 2024 and 2023, respectively. The fiscal year 2024 return of 10.59 percent exceeded the System’s assumed rate of return
of 6.75 percent effective June 30, 2024; the fiscal year 2023 return of 9.77 percent also exceeded the assumed rate of return
of 6.75 percent effective June 30, 2023.
In fiscal year 2024, the System’s gross of fee returns provided by its custodian, Northern Trust, when compared to other
institutional investors and weighted policy benchmarks, were slightly higher in the short-term, and also consistently higher
over the long-term. The System’s gross of fees one-year return was 10.59 percent, 0.70 percent above its policy benchmark
return of 9.89 percent; also outperforming its actuarial interest rate assumption of 6.75 percent by 3.84 percent in fiscal year
2024. The five-year annualized gross of fees return of 8.42 percent was 1.67 percent above its actuarial interest rate
assumption of 6.75 percent and above its policy benchmark return of 7.35 percent by 1.07 percent. The System’s ten-year
annualized gross of fees return at 7.49 percent exceeded its policy benchmarks of 6.66 percent by 0.83 percent and also
exceeded its actuarial interest rate assumption by 0.74 percent for the same period.
The System remains highly funded and well positioned to serve our members and retirees. As illustrated by the System’s 10,
15 and 25-year long-term gross of fees returns of 7.49 percent, 9.54 percent, and 6.89 percent, respectively, as of June 30,
2024, the System has the ability to achieve its long-term objectives over extended periods. Meanwhile, the System’s
actuarial and fair value funding status continues to be the highest of any public safety pension defined benefit plan in
California.
The Annual Comprehensive Financial Report (ACFR)
The Annual Comprehensive Financial Report (ACFR) of the City of Fresno Fire and Police Retirement System for fiscal
years ended June 30, 2024 and 2023, is submitted herewith. Information contained in this report is designed to provide a
complete and accurate review of the years' operations. Responsibility for both the accuracy of the data, and the completeness
and fairness of the presentation, rests with the management of the System. For a general overview of the City of Fresno Fire
and Police Retirement System’s finances, please refer to the Management’s Discussion and Analysis in the Financial Section
of this report. The ACFR consists of six sections:
The Introduction Section contains our Mission Statement, a Letter of Transmittal, a description of the System’s management
and organizational structure, a listing of the professional services providers, and the Government Finance Officers
Association’s Certificate of Achievement for Excellence in Financial Reporting.
The Financial Section contains the opinion of the independent auditor, Brown Armstrong Accountancy Corporation,
Management’s Discussion and Analysis, the Basic Financial Statements of the System, the Required Supplementary
Information and the Other Supplementary Information.
The Investment Section includes an Investment Report from the Retirement Administrator, a letter from the System’s
Investment Consultant, NEPC, LLC (NEPC), recapping the fiscal year investment results and activities, along with
performance and asset allocation information. Investment Consultant returns may differ slightly from the custodian's book of
record due to rounding methodology.
City of Fresno Fire and Police Retirement System l INTRODUCTION
Letter of Transmittal Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 ii
The Actuarial Section includes the certification letter produced by the independent actuary, The Segal Company, along with
supporting schedules and information.
The Statistical Section contains significant detailed data pertaining to the System.
The Compliance Section contains the Independent Auditor’s Report on Internal Control over Financial Reporting and on
Compliance and Other Matters Based on An Audit of Financial Statements Performed in Accordance with Government
Auditing Standards.
I trust that the Board and Members of the System will find this ACFR helpful in understanding the System and our
commitment to financial integrity and member services.
THE FIRE AND POLICE RETIREMENT SYSTEM AND ITS SERVICES
The Fire and Police Retirement System was established on July 1, 1955, under Charter Section 910 and is governed by
Articles 3 and 4 of Chapter 3 of the City of Fresno Municipal Code. Effective August 27, 1990, the City of Fresno (the City)
added a Second Tier that includes all full-time sworn Fire, Police, and Airport Safety personnel hired on or after that date.
The System provides retirement allowances to all full-time sworn safety members employed by the City of Fresno. In
accordance with the provisions of the City of Fresno Municipal Code, the System provides lifetime retirement, disability, and
death benefits to its safety members.
The Fire and Police Retirement Board is responsible for establishing policies governing the administration of the System,
making benefit determinations, and managing the investment of the System’s assets. The Board operates under the authority
vested in Articles 3 and 4 of Chapter 3 of the City of Fresno Municipal Code and the California Pension Protection Act of
1992. Article XVI, Section 17(b) of the Constitution of the State of California provides that the “members of the Retirement
Board of a public retirement system shall discharge their duties...solely in the interest of, and for the exclusive purpose of
providing benefits to, participants and their beneficiaries, minimizing employer contributions thereto, and defraying
reasonable expenses of administering the System. A Retirement Board’s duty to its participants and their beneficiaries shall
take precedence over any other duty.” Section 17(a) further provides that the Board has...“the sole and exclusive
responsibility to administer the System in a manner that will assure prompt delivery of benefits and related services to the
participants and their beneficiaries.” The Retirement Board is also responsible for the prudent investment of member and
employer contributions and defraying reasonable expenses of administration.
The Retirement Board has five (5) members: two (2) management employees who are appointed by the Mayor and confirmed
by the City Council, one (1) employee who is elected by the sworn Fire Department members of the System, and one (1)
employee who is elected by the Police and Airport Safety Officers of the System; both elected members serve a four-year
term. The fifth and final member of the Board shall be a qualified elector of the County of Fresno, not connected with its
government, appointed by the previously designated four members. The Board oversees the Retirement Administrator and
staff in the performance of their duties in accordance with the City of Fresno Municipal Code and the Board’s Rules,
Regulations and Policies.
City of Fresno Fire and Police Retirement System l INTRODUCTION
Letter of Transmittal Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 iii
Major Initiatives
The Board, jointly with the City of Fresno Employees Retirement System Board (the Boards), with the assistance of Staff and
their Investment Consultant, continued asset class reviews, investment education and evaluations related to all investment
classes.
The Boards approved an investment with Grain Communications following an investment and operational due diligence
review of the firm and its processes in September 2023. Following investment and operational due diligence review, and
legal review, the Boards also approved investments with Volta Technologies, and Carlyle’s Renewable and Sustainable
Energy Fund. The Boards also reviewed and approved a pacing plan for Private Debt for 2024, conducted a real estate
program review and updated a real estate pacing plan.
Effective January 1, 2017, the IRS eliminated its staggered five-year remedial amendment cycle system for individually
designed qualified retirement plans and no longer accepts applications for determination letters. The System's letter of
determination was effective through January 31, 2019. The IRS' current determination letter program, in general, provides
that a plan sponsor that maintains a qualified plan, with a favorable determination letter, may continue to rely on the
determination with respect to any plan provision, until such time that the plan provision subsequently is amended or affected
by a change in law. The Boards retained the services of the law firm of Ice Miller, LLP (Ice Miller) to assist with a review of
our plan documents and applicable statutes in effect through 2013, and any plan amendments or changes to provisions made
after January 1, 2014. Based on their initial review, since the date of the plan's favorable determination letter May 26, 2014,
the plan has been timely amended to comply with the changes required to be tax qualified under Internal Revenue Code § 401
(a). Staff began work with Ice Miller in 2019 to review the Retirement Systems' plan provisions for continued IRS
Compliance. The proposal from Ice Miller to participate in the IRS Comply Now program included updating of the Systems’
plan provisions to incorporate certain distribution provisions and new provisions required by the Setting Every Community
Up for Retirement Enhancement (SECURE) and Coronavirus Aid, Relief and Economic Security (CARES) Acts. Comply
Now reports detailing the changes to be considered were presented to the Boards during fiscal year 2021. Given the passage
of SECURE 2.0 in 2022, Staff will work with counsel on additional updates to, amendments of the plans.
Retirement Benefits Staff have continued to provide all the necessary information and support that Members need, answering
individual questions and assisting members in making informed decisions regarding retirement. Staff are available to assist
and answer member questions via telephone, face to face meetings and via online video conferencing. Staff also provide
further outreach to active employees via the Mid-Career Retirement Seminars. These seminars provide an overview of the
benefits available to active members who may be considering retirement or Deferred Retirement Option Program (DROP) in
the next 5-10 years.
City of Fresno Fire and Police Retirement System l INTRODUCTION
Letter of Transmittal Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 iv
With the assistance of its actuary and staff, the Board completed the annual actuarial valuations for June 30, 2024 and 2023,
and Governmental Accounting Standards Board (GASB) Statement No. 67, which redefines pension liability and expense for
financial reporting purposes only. In accordance with Actuarial Standards of Practice (ASOP) No. 51, the System's actuary
has identified and assessed risks that may be reasonably anticipated to significantly affect the System's future financial
condition, which helps intended users of the actuarial findings gain a better understanding of risks inherent in the
measurements of pension obligations and actuarially determined pension plan contributions.
Professional Services
Professional Services Consultants and Investment Portfolio Managers are retained by the Board to provide professional
services essential to the effective and efficient operation of the System. See listings on pages xiii and xiv.
An opinion from the Independent Auditor and a certification letter from the Actuary are included in this report along with a
summary investment report from the Board’s Investment Consultant. The Consultants and Investment Managers retained by
the Board are listed in the following section of this report.
Certificate of Achievement
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of
Achievement for Excellence in Financial Reporting to the City of Fresno Fire and Police Retirement System for its annual
comprehensive financial report for the fiscal year ended June 30, 2023. The Certificate of Achievement is a prestigious
national award recognizing excellence in the preparation of public employee retirement system annual comprehensive
financial reports.
To be awarded a Certificate of Achievement for Excellence in Financial Reporting, a government entity must publish an
easily readable and efficiently organized annual comprehensive financial report. This report must satisfy both generally
accepted accounting principles and applicable legal requirements.
A Certificate of Achievement for Excellence in Financial Reporting is valid for a period of one year only. The System has
received a Certificate of Achievement for the last 23 consecutive years. We believe that our current annual comprehensive
financial report continues to meet the Certificate of Achievement Program’s requirements and we are submitting it to the
GFOA to determine its eligibility for another certificate. For fiscal year 2023, the System submitted a Popular Annual
Financial Report (PAFR) to the GFOA. The System received from the GFOA an Award for Outstanding Achievement in
Popular Annual Financial Reporting. The PAFR provides System membership with condensed and concise information in an
easier to read format than is presented in the ACFR.
City of Fresno Fire and Police Retirement System l INTRODUCTION
Letter of Transmittal Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 v
Actuarial Funding Status and Net Pension Liability
The System’s funding objective is to meet long-term benefit promises by retaining a well-funded plan status and obtaining
superior investment returns while minimizing employer contributions. The Board’s objective for employer contributions is to
establish a rate as a level percent of member payroll. The greater the level of overall plan funding, the larger the ratio of
assets accumulated compared to the actuarial accrued liability and the greater the level of investment potential. The
advantage of a well-funded plan is that the benefits earned by participants are funded during their working careers and not by
future generations of taxpayers.
The June 30, 2024 actuarial valuation is presented in this ACFR. As of June 30, 2024, the funded ratio of the Fire and Police
Retirement System was 114.9 percent. The ratio of the valuation value of assets to actuarial accrued liabilities was 116.7
percent as of the June 30, 2023, valuation. The funding ratios as of June 30, 2024 and 2023, if measured using the fair value
of assets instead of the actuarial valuation value of assets, are 118.0 percent and 117.3 percent, respectively. The funded
ratios were determined by using the actuarial value of the assets in accordance with actuarial standards.
The actuarial accrued liability of the System at June 30, 2024, for funding purposes, amounted to $1,732,763,000; the
actuarial valuation value of assets amounted to $1,991,116,988; and the fair value of assets (including non-valuation reserves)
amounted to $2,203,370,816. At June 30, 2023, the actuarial valuation value of assets amounted to $1,876,149,460; the fair
value of assets (including non-valuation reserves) amounted to $2,045,836,887.
Under the Governmental Accounting Standards Board (GASB) Statement No. 67 Financial Reporting methodology, the net
pension liability of the System as of June 30, 2024 indicates a surplus of $207,368,598; while on an actuarial funding basis
the valuation value of assets basis reflects a surplus of $258,353,988 and a funding ratio of 114.9 percent. At June 30, 2023,
the net pension liability of the System indicated a surplus of $180,095,752 and a funding ratio of 116.7 percent. For financial
reporting purposes, the Plan Fiduciary Net Position as a percentage of the Total Pension Liability is 110.39% and 109.65% as
of June 30, 2024 and 2023, respectively.
The Board engages an independent actuarial consulting firm to conduct annual actuarial valuations of the System. The
purpose of the actuarial valuation is to reassess the magnitude of the benefit commitments. This is compared to the assets
expected to be available to support those commitments. Recommendations are presented to the Board for consideration. The
Segal Company is the System’s independent actuarial consultant. The Actuarial Section of this report contains a more
detailed discussion of funding.
City of Fresno Fire and Police Retirement System l INTRODUCTION
Letter of Transmittal Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 vi
Accounting System & Reports
The management of the System is responsible for establishing and maintaining an internal control structure designed to
ensure that System assets are protected from loss, theft, or misuse. Responsibility for the accuracy, completeness, and fair
presentation of the information, and all disclosures, rests with the management of the System.
The accounting firm of Brown Armstrong Accountancy Corporation provides financial audit services. The financial audit
ensures that the System’s financial statements are presented in conformity with accounting principles generally accepted in
the United States of America (GAAP) and are free of material misstatement. The internal controls are designed to provide
reasonable but not absolute assurance that these objectives are met. The System recognizes that even sound internal controls
have their inherent limitations. Internal controls are reviewed to ensure that the System’s operating policies and procedures
are being adhered to and that the controls are adequate to ensure accurate and reliable financial reporting and to safeguard the
System’s assets. The objective is to provide a reasonable, rather than absolute, assurance that the financial statements are free
of any material misstatements given the prudent need to ensure that the cost of a control should not exceed the benefits to be
derived. We believe that the System's internal controls adequately safeguard assets.
This report has been prepared in accordance with Generally Accepted Accounting Principles for State and Local
Governments (GAAP) as established by the Governmental Accounting Standards Board (GASB). The System’s transactions
are reported on the accrual basis of accounting. Revenues are taken into account when earned, regardless of the date of
collection. Expenses are recorded when the corresponding liabilities are incurred, regardless of when the payment is made.
Investments
Article XVI, Section 17(c) of the Constitution of the State of California, provides that “the members of the Retirement Board
of a public pension or retirement system shall discharge their duties... with the care, skill, prudence, and diligence under the
circumstances then prevailing that a prudent person acting in a like capacity and familiar with these matters would use in the
conduct of an enterprise of a like character and with like aim.” By permitting further diversification of investments within a
fund, the prudent expert standard may enable a fund to reduce overall risk and increase returns. A summary of the asset
allocation can be found in the investment section of this report and in Note 2 – Summary of Significant Accounting Policies
(see section Investment).
The prudent expert rule permits the Board to establish an investment policy based upon professional advice and counsel and
allows for delegation of investment authority to professional investment advisors. The Investment Objectives and Policy
Statement of the Board outline the responsibility for the investment of the fund and the degree of risk that is deemed
appropriate for the fund. Investment advisors are to execute the policy in accordance with the Board policy and guidelines.
For the fiscal years ended June 30, 2024 and 2023, the System’s investments provided a 10.59 percent and 9.77 percent gross
of fees rate of return, respectively, as reported by the custodian, Northern Trust.
City of Fresno Fire and Police Retirement System l INTRODUCTION
Letter of Transmittal Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 vii
City of Fresno Fire and Police Retirement System l INTRODUCTION
Letter of Transmittal Continued
Acknowledgments
The compilation of this report reflects the combined effort of the System’s staff under the leadership of the Board. It is
intended to provide complete and reliable information as a basis for making management decisions, as a means of
determining compliance with legal provisions, and as a means of determining responsible stewardship of the funds of the
System.
On behalf of the Board, I would like to express my appreciation for the dedication and efforts of my staff members, Kathleen
Riley Brown, Yvonne Timberlake, Chad Jacobs, Alberto Magallanes, Karen Espiritu, Cristina Jurado, Kristina Espinoza,
Pattie Laygo, Andrea Ketch, Patricia Basquez, Joan Taketa, Katie Baroni, Tracy Gonzales, Enia Leon, Erika Cortes,
Machelle Smiley, Cecilia Lopez, Gilberto Torentela, and the Board's consultants, for their assistance in the preparation of this
report and for their ongoing commitment to serve the Board and the members of the System. I also would like to thank the
Board members for their support in accomplishing the many tasks and goals over the past year.
Respectfully Submitted,
Robert T. Theller
Robert T. Theller, Esq.
Retirement Administrator
December 4, 2024
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 viii
Retirement Board Members
As of June 30, 2024
Chair
Jonathan Lusk
Re-Elected June 2022
Term Expires June 2026
Represents Fire Members
Vice Chair
Donald Gross
Appointed May 2019
Term Continuous
Appointed by the Mayor and Confirmed by the Fresno City Council
Lynn Bennink
Appointed June 2017
Term Continuous
Outside Member Appointed by the Retirement Board
Chris Cooper
Elected June 30, 2024
Term expires June 30, 2028
Represents Police Members
Lawrence French
Appointed November 2023
Term Continuous
Appointed by the Mayor and Confirmed by the Fresno City Council
City of Fresno Fire and Police Retirement System l INTRODUCTION
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 ix
Retirement Office Staff
Administrative Services (From left to right)
Cecilia Lopez
Senior Administrative Clerk
Chad Jacobs
Investment Officer
Pattie Laygo
Retirement Office Manager
Robert T. Theller, Esq.
Retirement Administrator
Tracy Gonzales
Senior Customer Services Clerk
Gilberto Torentela
Senior Administrative Clerk
Financial Services (From left to right)
Karen Espiritu
Senior Accountant Auditor
Alberto Magallanes
Retirement Accounting Manager
Kathleen Riley-Brown
Assistant Retirement Administrator
Kristina Espinoza
Accounting Technician
Cristina Jurado
Accountant Auditor II
Member Services (From left to right)
Andrea Ketch
Retirement Benefits Manager
Enia Leon
Retirement Counselor II
Yvonne Timberlake
Assistant Retirement Administrator
Erika Cortes
Retirement Counselor II
Machelle Smiley
Retirement Counselor II
Joan Taketa
Retirement Counselor II
Patti Basquez (not pictured)
Senior Retirement Counselor
City of Fresno Fire and Police Retirement System l INTRODUCTION
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 x
Administration of the System
Administration
The Administrative Section is responsible for the administration of the City of Fresno Fire and Police Retirement System,
including the risk management of the investment activities in accordance with the policies, regulations, and general
guidelines of the Retirement Board. It is also responsible for interfacing with the investment managers, the investment
consultant, the actuary, legal counsel, custodial bank, and any other consultants authorized by the Board. (See page xiii for
professional services and consultants, page xiv for investment portfolio managers, and page 77 for a schedule of brokerage
commissions and investment manager fees by listed asset class.)
Member Services
This section is responsible for providing all benefit services to the members of the System. This includes benefit
calculations, investigation of claims for disability retirement, preparation of data to support applications for retirement,
preparation of the retiree payroll, membership counseling, and membership training.
Financial Services
This section is responsible for planning, organizing and directing all fiscal activities of the Retirement Systems. This
includes the preparation and publication of the Annual Financial Reports, monthly or quarterly financial report and
information to the Board, and all other financial records and reports including financial statements, control and balancing of
payroll and members' contributions and reconciliation of investments.
Investment Officer
This position is responsible for monitoring compliance with the Board’s Investment Objectives and Policy Statement and
assists and coordinates in the management and administration of the System's investment program. This includes the planning
and development of investment strategies.
Retirement Office Manager
This position is responsible for providing administrative and clerical support services for the Board and the retirement staff.
City of Fresno Fire and Police Retirement System l INTRODUCTION
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 xi
Organizational Structure
City of Fresno Fire and Police Retirement System l INTRODUCTION
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 xii
Professional Services and Consultants
Custodial Bank
NORTHERN TRUST
Chicago, Illinois
General Legal Advisor
SALTZMAN AND JOHNSON LAW CORPORATION
San Francisco, California
Legal Advisor
NOSSAMAN LLP
San Francisco, California
Tax Counsel
ICE MILLER LLP
Indianapolis, Indiana
Investment Legal Advisor
FOLEY & LARDNER LLP
Boston, Massachusetts
Investment Consultant
NEPC, LLC
Boston, Massachusetts
Actuary
THE SEGAL COMPANY
San Francisco, California
Medical Advisor
BENCHMARK, AN EXAMWORKS COMPANY, INC.
Sacramento, California
Independent Auditor
BROWN ARMSTRONG ACCOUNTANCY CORPORATION
Bakersfield, California
City of Fresno Fire and Police Retirement System l INTRODUCTION
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 xiii
Investment Portfolio Managers
EQUITY
Domestic Equity
Northern Trust Asset Management, Chicago, IL
International Equity
BlackRock, San Francisco, CA
Baillie Gifford & Co., Edinburgh, Scotland
Principal Global Investors, Des Moines, IA
Private Equity
Ocean Avenue Capital Partners, Santa Monica, CA
Pantheon Ventures, San Francisco, CA
Volta Energy Technologies, Naperville, IL
RATES/CREDIT
Core Fixed Income
Dodge & Cox, San Francisco, CA
Prudential Investment Mgmt., Inc., Newark, NJ
Private Debt/Credit
Arcmont Asset Mgmt, London, United Kingdom
Crescent Capital, Los Angeles, CA
Monroe Capital, Chicago, IL
PIMCO COF, Newport Beach, CA
REAL ASSETS
Core Real Estate
The Carlyle Group, Washington, D.C.
JP Morgan Asset Mgmt., New York, NY
Tristan Capital Partners, London, United Kingdom
Grain Management, LLC, Washington, D.C.
Non-Core Real Estate
Alidade Capital, Bloomfield Hills, MI
Artemis Real Estate Partners, Chevy Chase, MD
Blue Vista Capital Management, Chicago, IL
Brookfield Asset Management, New York, NY
Kayne Anderson, Boca Raton, FL
Oaktree Capital Management, Los Angeles, CA
PCCP, LLC, Los Angeles, CA
PIMCO BRAVO III, Newport Beach, CA
Infrastructure
JP Morgan IIF, New York, NY
Ullico UIF, Chicago, IL
MULTI-ASSETS
Alternative Credit
Cloverlay, Conshohocken, PA
Sixth Street/TAO, San Francisco, CA
City of Fresno Fire and Police Retirement System l INTRODUCTION
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 xiv
City of Fresno Fire and Police Retirement System l INTRODUCTION
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 xv
To protect and provide
system benefits through
the highest quality
delivery of service for our
members and the
employer, prudently
fulfilling our fiduciary
duties of investment and
conservation of Trust
assets.
FINANCIAL
2 Independent Auditor's Report
5 Management's Discussion and Analysis
18 Basic Financial Statements
20 Notes to the Basic Financial Statements
57 Required Supplementary Information
62 Other Supplementary Information
Independent Auditor’s Report
City of Fresno Fire and Police Retirement System l FINANCIAL
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 2
City of Fresno Fire and Police Retirement System l FINANCIAL
Independent Auditor's Report Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 3
City of Fresno Fire and Police Retirement System l FINANCIAL
Independent Auditor's Report Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 4
Management's Discussion and Analysis
We are pleased to provide this overview and analysis of
the financial activities of the City of Fresno Fire and
Police Retirement System (the System) for the fiscal years
ended June 30, 2024 and 2023. We encourage readers to
consider the information presented here in conjunction
with additional information that we have furnished in the
Letter of Transmittal beginning on page i of this report.
Financial Highlights
The System’s net position restricted for pension benefits
is for payment of pension benefits to participants and their
beneficiaries, and all of the net position is restricted to
meet the System’s ongoing obligations.
At the close of the fiscal year 2024, the assets of the
System exceed its current liabilities by $2,203,370,816; as
of fiscal year-end 2023, the assets of the System exceeded
its liabilities by $2,045,836,887; and as of fiscal year-end
2022, the assets of the System exceeded its liabilities by
$1,891,077,196.
The System’s net position restricted for pension benefits
increased by $157,533,929 or 7.70 percent for fiscal year
2024; for the prior fiscal year 2023, total net position
increased by $154,759,691 or 8.18 percent; and for the
prior fiscal year 2022, total net position decreased by
$199,292,927 or 9.53 percent, all primarily as a result of
the performance of the global investment markets.
The System’s funding objective is to meet long-term
benefit obligations through contributions and investment
income. As of June 30, 2024, the date of the last actuarial
valuation, the funded ratio for the System was 114.9
percent. In general, this indicates that for every dollar of
benefits due, we have approximately $1.15 of assets
available for payment as of that date.
As of June 30, 2023, the date of the previous annual
actuarial valuation, the funded ratio for the System was
116.7 percent; and as of June 30, 2022, the date of the
previous annual actuarial valuation, the funded ratio for
the System was 120.5 percent.
Additions to Fiduciary Net Position
Additions for the fiscal year 2024 increased $12,113,501
or 5.09 percent over the prior year from $238,097,624 to
$250,211,125, which includes member contributions of
$13,107,833, employer contributions of $30,635,176, a
net investment income of $206,269,024 and net securities
lending income of $199,092.
Fiscal year 2023 additions increased $360,086,148 or
295.18 percent over the prior year from $-121,988,524 to
$238,097,624, which included member contributions of
$12,053,687, employer contributions of $27,067,935, a
net investment income of $198,614,230 and net securities
lending income of $361,772.
For fiscal year 2022 additions decreased $650,304,046 or
123.09 percent over the prior year from $528,315,522 to
$-121,988,524, which included member contributions of
$10,973,174, employer contributions of $27,555,587, a
net investment loss of $-160,842,330 and net securities
lending income of $325,045.
Deductions from Fiduciary Net Position
Deductions for the fiscal year 2024 increased $9,339,263
or 11.21 percent over the prior fiscal year from
$83,337,933 to $92,677,196.
Fiscal year 2023 deductions increased $6,033,530 or 7.80
percent over the prior fiscal year from $77,304,403 to
$83,337,933.
City of Fresno Fire and Police Retirement System l FINANCIAL
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 5
Fiscal year 2022 deductions increased $4,059,191 or 5.54
percent over the prior fiscal year from $73,245,212 to
$77,304,403.
The current year increase in deductions is due primarily to
an increase in the number of retirees and a modest
increase in the Post Retirement Supplemental Benefit
(PRSB) payments for calendar year 2024.
Schedule and Graph of Additions By Source
For Fiscal Years Ended June 30, 2024, 2023 and 2022 (In Thousands)
2022 2023 2024
Employer Contributions $ 27,556 $ 27,068 $ 30,635
Employee Contributions 10,973 12,054 13,108
Investment Income (Loss)$ (160,518) 198,976 206,468
TOTAL $ (121,989) $ 238,098 250,211
Employer Contributions Employee Contributions
Investment Income (Loss)
2022 2023 2024
$-200,000
$-150,000
$-100,000
$-50,000
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
City of Fresno Fire and Police Retirement System l FINANCIAL
Management's Discussion and Analysis Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 6
Schedule and Graph of Deductions By Type
For Fiscal Years Ended June 30, 2024, 2023 and 2022 (In Thousands)
2022 2023 2024
Benefit Payments $ 72,785 $ 77,662 $ 86,681
PRSB 2,024 2,653 2,515
Refunds of Contributions 369 622 1,024
Administrative Expenses 2,126 2,401 2,457
TOTAL $ 77,304 $ 83,338 $ 92,677
Administrative Expenses Refunds of Contributions
PRSB Benefit Payments
2022 2023 2024
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000
$90,000
$100,000
City of Fresno Fire and Police Retirement System l FINANCIAL
Management's Discussion and Analysis Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 7
Overview of the Financial Statements
The following discussion and analysis are intended to
serve as an introduction to the System’s financial
statements, which are comprised of these components:
Statement of Fiduciary Net Position – The
Statement of Fiduciary Net Position presents the major
categories of assets and liabilities and their related value
as of the System’s fiscal years ended June 30, 2024 and
2023. “Net Position Restricted for Pension Benefits”
represents funds available to pay benefits, and it is a point
in time or a snapshot of account balances as of the fiscal
year-end. It indicates the assets available for future
payments to retirees and any current liabilities. Increases
and decreases in Net Position Restricted for Pension
Benefits, when analyzed over time, may serve as an
indicator of whether the System’s financial position is
improving or deteriorating. Other factors, such as market
conditions, should also be considered in measuring the
System’s overall health.
Statement of Changes in Fiduciary Net Position
– The Statement of Changes in Fiduciary Net Position
provides information about the financial activities during
the reporting period that increased and decreased the Net
Position Restricted for Pension Benefits.
The two statements above include all assets and liabilities,
using the full accrual basis of accounting, which is similar
to the accounting method used by most private sector
companies. All of the current year’s additions and
deductions are taken into account regardless of when the
cash is received or paid. All investment gains and losses
are shown at trade date, not settlement date. In addition,
both realized and unrealized gains and losses are shown
on investments.
Both statements are in compliance with Governmental
Accounting Standards Board (GASB) Pronouncements.
These pronouncements require certain disclosures and
require State and Local governments to report using the
full accrual basis of accounting. The System complies
with all material requirements of these pronouncements.
Notes to the Basic Financial Statements - The
Notes to the Basic Financial Statements are an integral
part of the basic financial statements and provide
additional information that is essential to acquire a full
understanding of the information and data provided in the
two statements discussed above. The notes include
further discussion and details regarding the System’s key
policies, programs, investments and activities that
occurred during the year.
Required Supplementary Information – The
Required Supplementary Information presents historical
trend information concerning the changes in net pension
liability, employer contributions and investment returns,
and includes notes that explain factors that significantly
affect trends in the amounts reported, such as changes of
benefit terms, changes in the size or composition of the
population covered by the benefit terms, or the use of
different assumptions over time. The information is based
on actuarial valuations prepared for the pension plan. The
actuarial valuation report includes additional actuarial
information that contributes to the understanding of the
changes in the net pension liability of the defined benefit
pension plan over the past ten years as presented in the
schedule. The actuarial information is based upon
assumptions made regarding future events at the time the
valuations are performed and is derived for both financial
reporting and funding purposes.
City of Fresno Fire and Police Retirement System l FINANCIAL
Management's Discussion and Analysis Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 8
Other Supplementary Information – The Other
Supplementary Information, presented immediately
following the required supplementary information,
includes schedules pertaining to the System’s
administrative expenses, investment management fees and
other investment related expenses, and payments to
consultants and other professional services providers.
The System’s funding ratio at June 30, 2024, was 114.9
percent, which means the System’s fund has
approximately $1.15 available for each $1.00 of liability.
The Statement of Fiduciary Net Position and the
Statement of Changes in Fiduciary Net Position report
information about the System’s financial activities during
the reporting periods that increased and decreased the Net
Position Restricted for Pension Benefits.
Financial Analysis Net Position
As previously noted, net position restricted for pension
benefits may serve over time as a useful indication of the
System’s financial position. The System's assets
exceeded its liabilities at the close of the fiscal year 2024
by $2,203,370,816. All of the net position restricted for
pension benefits is available to meet the System’s
ongoing obligations to plan participants and their
beneficiaries.
In fiscal year 2024, the System’s restricted fiduciary net
position, representing assets available to pay current and
future member pension benefits, increased by 7.70 percent
due to strong performance of the investment markets;
while in 2023, the System’s restricted fiduciary net
position increased by 8.18 percent due to strong
performance of the global investment markets; and also,
due largely to volatility and fluctuations lowering
performance in the investment markets in 2022, the
System’s restricted fiduciary net position decreased by
9.53 percent (See Table 1).
In order to determine whether the $2.203 billion in net
position will be sufficient to meet future obligations, the
System’s independent actuary performed an actuarial
valuation as of June 30, 2024. The result of this valuation
determines what future contributions by plan members
and the City of Fresno are needed to pay all expected
future benefits. The valuation takes into account the
Retirement Board’s (the Board) funding policy which
includes a provision to smooth the impact of market
volatility by spreading each year’s gains or losses over
five years.
There has been extreme volatility in the various
economies of the world and throughout the global
financial markets over the past twenty to twenty-five
years, therefore, it is of utmost importance to examine the
System’s investment returns with a long-term view rather
than a short-term focus which tends to distort the
perception of how well the investments have actually
performed. Historical long-term performance rates of
returns demonstrate that the System has been able to meet
or exceed its actuarial assumed rate of return of 6.75
percent over long periods. As of June 30, 2024, the
System’s 25-year annualized return is 6.89 percent and its
20-year annualized return is 7.57 percent.
Despite volatility in the stock market, management and
the System’s actuary concur that the System remains in a
very strong financial position to meet its obligations to the
plan participants and beneficiaries. The System’s current
financial position is a result of a very sound and carefully
managed investment and risk management program.
City of Fresno Fire and Police Retirement System l FINANCIAL
Management's Discussion and Analysis Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 9
Table 1 – Fire and Police Retirement System Fiduciary Net Position
Restricted For Pension Benefits
As of June 30, 2024, 2023 And 2022
FY 2024 FY 2024
FY 2024 FY 2023
Increase/
(Decrease)
Amount
Increase/
(Decrease)
Percent
Current and Other Assets $ 39,651,135 $ 57,678,144 $ (18,027,009) (31.25%)
Investments at Fair Value 2,202,503,341 2,047,638,561 154,864,780 7.56%
Total Assets $ 2,242,154,476 $ 2,105,316,705 $ 136,837,771 6.50%
Total Liabilities 38,783,660 59,479,818 (20,696,158) (34.80%)
Net Position Restricted for Pension Benefits $ 2,203,370,816 $ 2,045,836,887 $ 157,533,929 7.70%
FY 2023 FY 2023
FY 2023 FY 2022
Increase/
(Decrease)
Amount
Increase/
(Decrease)
Percent
Current and Other Assets $ 57,678,144 $ 93,847,875 $ (36,169,731) (38.54%)
Investments at Fair Value 2,047,638,561 1,899,655,163 147,983,398 7.79%
Total Assets $ 2,105,316,705 $ 1,993,503,038 $ 111,813,667 5.61%
Total Liabilities 59,479,818 102,425,842 (42,946,024) (41.93%)
Net Position Restricted for Pension Benefits $ 2,045,836,887 $ 1,891,077,196 $ 154,759,691 8.18%
Total Assets Total Liabilities
FY 2024 FY 2023 FY 2022
$0
$500,000,000
$1,000,000,000
$1,500,000,000
$2,000,000,000
$2,500,000,000
City of Fresno Fire and Police Retirement System l FINANCIAL
Management's Discussion and Analysis Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 10
Capital Assets
The System’s investment in capital assets decreased from
$347,021 to $211,960 (net of accumulated depreciation)
between fiscal years 2023 and 2024 after decreasing from
$482,246 to $347,021 (net of accumulated depreciation)
between fiscal years 2022 and 2023. This investment in
capital assets includes office equipment, furniture,
software, and technology infrastructure. The total
decrease in the System's investment in capital and
intangible capital assets as of June 30, 2024 and 2023 was
attributed to the disposal of capital assets no longer of
service and the annual depreciation expense which netted
to $(135,061) and $(135,225), respectively. These
changes in both fiscal years were primarily due to the
costs incurred for the development of software to program
and install an upgrade to our original pension
administration system that was originally installed in
1997, which was implemented effective July 1, 2015. For
additional, more detailed, information related to the
System's capital assets, please refer to Note 12 - Capital
Assets beginning on page 54.
Reserves
Reserves are not required, nor recognized, under
accounting principles generally accepted in the United
States of America (GAAP). The reserves are not shown
separately on the Statement of Fiduciary Net Position, but
they equate to and are accounts within the net position
restricted for pension benefits and are vital to the
System’s operations. They are established from
contributions and the accumulation of investment income,
after satisfying investment and administrative expenses.
Investments of the System are stated at fair value instead
of at cost, which includes the recognition of unrealized
gains and losses in the current period.
The System’s major reserve accounts, described in Note 5
– Net Position Restricted for Pension Benefits, include
Active Member (Employee) Reserves, Employer
Advance/Retired Reserves, DROP Reserves, PRSB
Reserves and City Surplus Reserves.
Deferred Retirement Option Program (DROP) Reserves
represent funds reserved for Deferred Retirement Option
Program benefits accumulated by active members and
retirees. DROP is an alternate method of receiving
retirement benefits. It is a voluntary program as described
by the conditions and requirements of the City of Fresno
Municipal Code Section 3-353. A DROP account is a
nominal, bookkeeping account established within the
System for each DROP participant. Monthly amounts
credited to DROP accounts include an amount which
represents the service retirement allowance which the
member would have received if the member had retired
on the date the member commenced DROP participation
and interest credited at the five-year average interest rate
as adopted by the Retirement Board (the Board) in
accordance with the City of Fresno Municipal Code
requirements.
Post Retirement Supplemental Benefit (PRSB) Reserves
represent surplus earnings that have been allocated but not
distributed to eligible participants in accordance with the
City of Fresno Municipal Code Section 3-354. PRSB is a
supplemental benefit distributed to eligible participants in
accordance with the City of Fresno Municipal Code
Section 3-354, if and only if distributable actuarial surplus
is available to provide such a benefit. Actuarial surplus
means the amount by which the actuarial value of the
System’s assets exceeds one hundred and ten percent
(110%) of the System’s actuarial accrued liabilities.
City of Fresno Fire and Police Retirement System l FINANCIAL
Management's Discussion and Analysis Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 11
City Surplus Reserves represent the portion of
distributable actuarial surplus that has been allocated but
not used as a reduction to offset or eliminate the City of
Fresno’s (the City) pension contributions in accordance
with the conditions and requirements of the City of Fresno
Municipal Code Section 3-354 Post-Retirement
Supplemental Benefits. The City Surplus Reserves
account accrues interest at the average gross rate of return
earned by the System’s entire investment portfolio for
each of the three prior fiscal years, including realized and
unrealized gains and losses and as reduced by all
investment related expenses.
Table 2 shows that the vast majority of reserves are
generated from Employer Advance/Retired Reserves.
DROP Reserves represent funds credited for participants
who elected to participate in the Deferred Retirement
Option Program. PRSB Reserves present that portion of
distributable actuarial surplus that has been allocated for
PRSB but not yet distributed to eligible participants.
Additions to and deductions from PRSB occur when
surpluses and allocations occur, respectively. The City
Surplus Reserves represent that portion of distributable
actuarial surpluses and accrued interest, reduced by
required City normal pension contributions. The City
Surplus Reserves account shall be drawn upon in
subsequent years if needed to reduce or eliminate the
City’s annual pension contribution requirement.
The City Surplus Reserves account balance was negative
for the fiscal year 2024 and 2023 while fiscal year 2022
showed a positive balance. The fluctuations are due to the
changes in surplus allocations available to the City for
offsetting the City’s contributions for fiscal years 2024,
2025 and 2026. The City’s normal contribution rates for
fiscal years 2024 and 2023 also included adjustments for
economic and non-economic actuarial assumption
changes.
City of Fresno Fire and Police Retirement System l FINANCIAL
Management's Discussion and Analysis Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 12
Table 2 – Fire and Police Retirement System’s Reserves
As of June 30, 2024, 2023, and 2022 (In Thousands)
FY 2024 FY 2023 FY 2022
Employer Advance/Retired Reserves $ 1,812,431 $ 1,665,409 $ 1,519,225
Active Member (Employee) Reserves 231,916 219,157 212,675
DROP Reserves 157,476 158,724 156,133
PRSB Reserves 2,159 2,672 2,487
City Surplus Reserves (611) (125) 557
Net Position Restricted for Pension Benefits $ 2,203,371 $ 2,045,837 $ 1,891,077
FY 2024 FY 2023 FY 2022
Employer
Adv/
Ret
Active
Me
mber (
E
mployee)
DROP PRSB
City Surplus
$0
$250,000
$500,000
$750,000
$1,000,000
$1,250,000
$1,500,000
$1,750,000
$2,000,000
City of Fresno Fire and Police Retirement System l FINANCIAL
Management's Discussion and Analysis Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 13
System’s Activities
Attributable in part to the continued growth and volatility
in global economic and financial markets, the System’s
net position increased $157,533,929 for the fiscal year
2024, resulting in an 7.70 percent increase in the fiduciary
net position restricted for pension benefits for the fiscal
year ended June 30, 2024. Primarily attributable to the
growth in the global financial markets in fiscal year 2023,
the System’s fiduciary net position increased
$154,759,691 for the fiscal year, resulting in a 8.18
percent increase in the fiduciary net position restricted for
pension benefits for the fiscal year ended June 30, 2023;
the System’s fiduciary net position decreased
$199,292,927 in fiscal year 2022 resulting in a 9.53
percent decrease in the fiduciary net position restricted for
pension benefits for the fiscal year ended June 30, 2022.
Key elements of the additions to and deductions from
Fiduciary Net Position for fiscal years 2024, 2023 and
2022 are described in the sections below.
Additions to the System’s Fiduciary Net
Position
The reserves needed to finance retirement benefits are
normally accumulated through the collection of employer
and employee contributions and through earnings of
investment income net of investment expense. Total
additions for the fiscal year ended June 30, 2024 totaled
$250,211,125.
For the fiscal year ended June 30, 2024, overall additions
had increased by $12,113,501 or 5.09 percent primarily
due to the performance of the investment markets; for
fiscal year 2023, overall additions had increased by
$360,086,148 or 295.18 percent primarily due to the
performance of the investment markets; for fiscal year
2022, overall additions had decreased by $650,304,046 or
123.09 percent from the prior fiscal year. The investment
section of this report reviews the details of the results of
investment activity for the fiscal year ended June 30,
2024.
Deductions from the System’s Fiduciary Net
Position
The System was created to provide lifetime retirement
annuities, survivor benefits and permanent disability
benefits to qualified members and their beneficiaries. The
cost of such programs includes recurring benefit
payments, as designated by the System, refunds of
contributions to terminated employees, and the cost of
administering the System.
Deductions from the fiduciary net position for the fiscal
year ended June 30, 2024, totaled $92,677,196, which
was an increase of $9,339,263 or 11.21 percent over the
prior fiscal year 2023. Deductions from the fiduciary net
position for the fiscal year ended June 30, 2023, totaled
$83,337,933 which was an increase of $6,033,530 or 7.80
percent over the prior fiscal year 2022. The fiscal year
ended June 30, 2022 had deductions from the fiduciary
net position totaling $77,304,403, which was an increase
of $4,059,191 or 5.54 percent over the prior fiscal year
2021. The current year increase in benefits paid resulted
primarily from a modest increase in PRSB payments for
calendar year 2024 and the normal increase in the number
of new retirees receiving benefits.
The System’s increases in total expenses have closely
paralleled inflation and the growth in the membership and
services provided. The System has consistently met its
Administrative Expense Budget. There are no material
variances between planned expenses and actual expenses.
City of Fresno Fire and Police Retirement System l FINANCIAL
Management's Discussion and Analysis Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 14
Changes in Fiduciary Net Position (Condensed)
For Fiscal Years Ended June 30, 2024, 2023 and 2022
FY 2024 FY 2024
Increase/
(Decrease)
Increase/
(Decrease)
FY 2024 FY 2023 Amount Percent
Additions
Employer Contributions $ 30,635,176 $ 27,067,935 $ 3,567,241 13.18%
Employee Contributions 13,107,833 12,053,687 1,054,146 8.75%
Net Investment Income (Loss)* 206,468,116 198,976,002 7,492,114 3.77%
Total Additions $ 250,211,125 $ 238,097,624 $ 12,113,501 5.09%
Deductions
Retiree Benefit Payments $ 86,681,263 $ 77,661,978 $ 9,019,285 11.61%
Post Retirement Supplemental Benefit (PRSB) 2,514,579 2,652,886 (138,307) (5.21%)
Refunds of Contributions 1,023,545 622,026 401,519 64.55%
Administrative Expenses 2,457,809 2,401,043 56,766 2.36%
Total Deductions $ 92,677,196 $ 83,337,933 $ 9,339,263 11.21%
Changes in Net Position 157,533,929 154,759,691 2,774,238 1.79%
Net Position Restricted for Pension Benefits
Beginning of the Year 2,045,836,887 1,891,077,196 154,759,691 8.18%
End of the Year $ 2,203,370,816 $ 2,045,836,887 $ 157,533,929 7.70%
* Net of investment expense of $43,237,508 and $32,378,625 for June 30, 2024 and 2023, respectively.
FY 2023 FY 2023
Increase/
(Decrease)
Increase/
(Decrease)
FY 2023 FY 2022 Amount Percent
Additions
Employer Contributions $ 27,067,935 $ 27,555,587 $ (487,652) (1.77%)
Employee Contributions 12,053,687 10,973,174 1,080,513 9.85%
Net Investment Income (Loss)* 198,976,002 (160,517,285) 359,493,287 223.96%
Total Additions $ 238,097,624 $ (121,988,524) $ 360,086,148 295.18%
Deductions
Retiree Benefit Payments $ 77,661,978 $ 72,785,132 $ 4,876,846 6.70%
Post Retirement Supplemental Benefit (PRSB) 2,652,886 2,024,479 628,407 31.04%
Refunds of Contributions 622,026 368,506 253,520 68.80%
Administrative Expenses 2,401,043 2,126,286 274,757 12.92%
Total Deductions $ 83,337,933 $ 77,304,403 $ 6,033,530 7.80%
Changes in Net Position 154,759,691 (199,292,927) 354,052,618 177.65%
Net Position Restricted for Pension Benefits
Beginning of the Year 1,891,077,196 2,090,370,123 (199,292,927)(9.53%)
End of the Year $ 2,045,836,887 $ 1,891,077,196 $ 154,759,691 8.18%
* Net of investment expense of $32,378,625 and $20,639,898 for June 30, 2023 and 2022, respectively.
City of Fresno Fire and Police Retirement System l FINANCIAL
Management's Discussion and Analysis Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 15
City of Fresno Fire and Police Retirement System l FINANCIAL
Management's Discussion and Analysis Continued
System’s Fiduciary Responsibilities
The System’s Board and management staff are fiduciaries of the pension trust fund. Under the California Constitution, the
assets must be used exclusively for the benefit of plan participants and their beneficiaries.
Requests for Information
This financial report is designed to provide the Retirement Board, our membership, taxpayers, investment managers, and
creditors with a general overview of the City of Fresno Fire and Police Retirement System’s finances, and to show
accountability for the funds it receives. Questions concerning any of the information provided in this report, or requests for
additional financial information, should be addressed to:
City of Fresno Fire and Police Retirement System
2828 Fresno Street Suite 201
Fresno, California 93721-1327
Respectfully submitted,
Robert T. Theller
Robert T. Theller, Esq.
Retirement Administrator
December 4, 2024
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 16
THIS PAGE INTENTIONALLY LEFT BLANK
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 17
Basic Financial Statements
Statement of Fiduciary Net Position
As of June 30, 2024 and 2023
2024 2023
ASSETS
Cash (Note 7)$ 745,730 $ 704,447
Collateral Held for Securities Lent (Note 9) 30,048,536 27,067,056
Receivables
Receivables for Investments Sold 5,404,168 21,374,870
Interest and Dividends 2,269,391 2,042,912
Other Receivables 866,235 6,006,906
Total Receivables 8,539,794 29,424,688
Prepaid Expenses — —
Total Current Assets 39,334,060 57,196,191
Investments at Fair Value and NAV (Note 6 and Note 7)
Domestic Equities 536,005,210 518,942,102
International Equities 431,079,331 444,535,863
Private Equity 159,953,529 123,441,214
Fixed Income 272,386,444 247,962,050
Private Debt/Credit 295,521,248 253,290,331
Real Assets 464,049,233 430,096,804
Multi-Assets 35,351,984 18,816,901
Short-Term Investments 8,156,362 10,553,296
Total Investments 2,202,503,341 2,047,638,561
Capital Assets Net of Accumulated Depreciation (Note 12) 211,960 347,021
Other Assets 105,115 134,932
Total Assets 2,242,154,476 2,105,316,705
LIABILITIES
Collateral Held for Securities Lent (Note 9) 30,048,536 27,067,056
Payable for Investments Purchased 6,856,051 17,129,683
Other Liabilities 1,014,224 9,307,917
Payable for Foreign Currency Purchased 864,849 5,975,162
Total Liabilities 38,783,660 59,479,818
Net Position Restricted for Pension Benefits (Note 5)$ 2,203,370,816 $ 2,045,836,887
The accompanying notes to the basic financial statements on pages 20 -56 are an integral part of this statement.
City of Fresno Fire and Police Retirement System l FINANCIAL
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 18
Statement of Changes in Fiduciary Net Position
For Fiscal Years Ended June 30, 2024 and 2023
2024 2023
ADDITIONS
Contributions (Note 3)
Employer $ 30,635,176 $ 27,067,935
Employee 13,107,833 12,053,687
Total Contributions 43,743,009 39,121,622
Investment Income (Loss)
Net Appreciation/(Depreciation) in Fair Value of Investments 229,711,380 206,516,294
Interest 10,374,725 11,620,888
Dividends 7,616,102 10,853,092
Other Investment Related Income 154,063 65,035
Total Investment Income (Loss) 247,856,270 229,055,309
Less: Investment Expense (41,587,246) (30,441,079)
Total Net Investment Income (Loss) 206,269,024 198,614,230
Securities Lending Income
Securities Lending Earnings (Note 9) 1,849,354 2,299,318
Less: Securities Lending Expense (1,650,262) (1,937,546)
Total Net Securities Lending Income 199,092 361,772
Total Additions 250,211,125 238,097,624
DEDUCTIONS
Benefit Payments 86,681,263 77,661,978
Post Retirement Supplemental Benefits (Note 11) 2,514,579 2,652,886
Refunds of Contributions 1,023,545 622,026
Administrative Expense 2,457,809 2,401,043
Total Deductions 92,677,196 83,337,933
Changes in Net Position 157,533,929 154,759,691
NET POSITION RESTRICTED FOR PENSION BENEFITS
BEGINNING OF YEAR 2,045,836,887 1,891,077,196
END OF THE YEAR $ 2,203,370,816 $ 2,045,836,887
The accompanying notes to the basic financial statements on pages 20 -56 are an integral part of this statement.
City of Fresno Fire and Police Retirement System l FINANCIAL
Basic Financial Statements Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 19
Notes to the Basic Financial Statements
1 Significant Provisions of the
Retirement System
The City of Fresno Fire and Police Retirement System
(the System) was established on July 1, 1955, under
provisions of the City of Fresno Ordinance Number 4611,
and Charter Section 910, and is maintained and governed
by Articles 3 and 4 of Chapter 3 of the Municipal Code of
the City of Fresno (the City) but not under the control of
the City Council. The System is a single-employer,
contributory, defined benefit pension plan. The System is
a public employee retirement system that provides
lifetime retirement, disability, and death benefits to the
safety members employed by the City of Fresno, which
includes all full time sworn fire, police and airport safety
personnel.
The System is administered by the Fire and Police
Retirement Board (Board) which operates under the
authority vested in Articles 3 and 4 of Chapter 3 of the
City of Fresno Municipal Code and the California Pension
Protection Act of 1992 which provides that “the members
of the Retirement Board of a public retirement system
shall discharge their duties…solely in the interest of, and
for the exclusive purpose of providing benefits to
participants and their beneficiaries, minimizing employer
contribution thereto, and defraying reasonable expenses
of administering the System."
The Fire and Police Retirement Board does not operate
under the control of the City Council. The Board has the
sole and exclusive responsibility to administer the System
in a manner that will assure prompt delivery of benefits
and related services to the members and their
beneficiaries.
Fiduciary oversight of the Fire and Police Retirement
System is vested with the Board, which consists of five
(5) members: two (2) management employees who are
appointed by the Mayor and confirmed by the City
Council, one (1) employee who is elected by the sworn
Fire Department members of the System, and one (1)
employee who is elected by the Police and Airport Safety
Officers of the System; both elected members serve a
four-year term. The fifth and final member of the Board
is a qualified elector of the County of Fresno, not
connected with its government, elected by the previously
designated four members and serves at the pleasure of the
Board.
The Board, in conjunction with the Employees Retirement
Board, appoints, directs and oversees a Retirement
Administrator. The Retirement Administrator is
responsible for the overall management and
administration of the Employees and Fire and Police
Retirement Systems in accordance with the direction,
policy and goals set by the Boards and for providing
highly responsible and complex administrative support to
the Boards. The Retirement Administrator serves at the
pleasure of the Boards.
Working closely with the Boards, the Retirement
Administrator and his staff develop investment and
benefits policies, coordinate member services and
programs, and develop long-term strategies that fulfill the
Systems’ mission and goals.
The Board oversees the Retirement Administrator and
staff in the performance of their duties in accordance with
the City of Fresno Municipal Code and the Board’s Rules,
Regulations and Policies.
City of Fresno Fire and Police Retirement System l FINANCIAL
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 20
Membership and Benefit Eligibility
The Fire and Police Retirement System is one System
with two tiers. Effective August 27, 1990, the City of
Fresno (the City) added the Fire and Police Second Tier
for all full time sworn fire, police and airport safety
personnel hired on or after that date (and closed the Fire
and Police First Tier to new entrants). Both tiers are
governed by the City of Fresno Municipal Code. The
provisions of Tier 1 are set forth in Article 3 of Chapter 3,
while the Tier 2 provisions are stated in Article 4.
All permanent sworn Fire, Police and Airport Safety
personnel of the City of Fresno are eligible to participate
in the plan. Temporary Public Safety employees are not
eligible to participate in the plan. Employees become
eligible for membership on their first day of full-time
regular employment, and members become fully vested
after earning 5 years of service credit.
Total participants of the System were comprised
of the following at June 30, 2024 and 2023:
2024 2023
Active Members
Vested 843 878
Non-Vested 383 325
Total Active Members 1,226 1,203
Retirees and Beneficiaries of Deceased
Retirees, Currently Receiving Benefits 1,220 1,187
Inactive Vested Members 71 62
Total Retirees, Beneficiaries,
and Inactive Members 1,291 1,249
Grand Total 2,517 2,452
Benefit Provisions
The System provides lifetime retirement, disability, and
death benefits to all eligible permanent sworn Fire, Police
and Airport personnel employed by the City of Fresno.
The retirement (pension) benefits the member will receive
are based upon a combination of age at retirement, years
of credited service, final average monthly salary, tier and
the option selected by the participant. Death and
disability benefits are additionally based upon whether the
disability was service-connected and whether the death
occurred before or after retirement.
Members' contributions, including interest, are 100
percent vested at all times. Employer contributions do not
become vested until completion of 10 years of credited
service under the First Tier and five years of credited
service under the Second Tier when they become 100
percent vested, but are not payable until the member
attains the age of 50 under both tiers. Contributions are
made by the members and the employer at rates
recommended by the System’s actuary and adopted by the
Retirement Board.
Member Retirement Benefits
Members of Tier 1, hired prior to August 27, 1990, are
eligible to retire once they attain the age of 65 regardless
of service or at age 50 and have acquired 10 or more years
of retirement service credit. The Tier 1 benefit is
calculated pursuant to the provisions of Section 3-333 of
the City of Fresno Municipal Code. The monthly
allowance for a member with at least 20 years of service
who retires from active status is equal to 55 percent of
final compensation plus 2 percent of final compensation
for each year of service in excess of 20 years completed
after age 50. For Tier 1, final average compensation
consists of the final highest consecutive 36 months of
compensation earnable calculated using the rate of pay
actually earned by the member in effect at the time of
retirement. Some members can elect to have their final
compensation based on a rank average.
City of Fresno Fire and Police Retirement System l FINANCIAL
Notes to the Basic Financial Statements Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 21
Members of Tier 2, hired on or after August 27, 1990, are
eligible to retire once they attain the age of 65 regardless
of service or at age 50 and have acquired 5 or more years
of retirement service credit. The Tier 2 benefit is
calculated pursuant to the provisions of Section 3-411 of
the City of Fresno Municipal Code. The monthly
allowance for a member who is age 55 or older is equal to
2.70 percent of final compensation times years of accrued
retirement service credit. The maximum monthly
retirement allowance is 75 percent of final compensation.
For Tier 2, final average compensation consists of the
highest consecutive 36 months of compensation earnable
during any 36 months of service before the date of
retirement.
The member may elect an unmodified retirement
allowance, or choose an optional retirement allowance.
The unmodified retirement allowance provides the highest
monthly benefit and a 66 2/3 percent continuance to an
eligible surviving spouse or domestic partner. An eligible
surviving spouse is one married to the member one year
prior to the effective retirement date for members retiring
on or before the effective date (February 10, 2000) of
Ordinance No. 2000-5. For members retiring after the
effective date of Ordinance 2000-5, an eligible surviving
spouse or domestic partner is one married to or registered
with the member on or before the date of retirement.
There are four optional retirement allowances the member
may choose. Each of the optional retirement allowances
requires a reduction in the unmodified retirement
allowance in order to allow the member the ability to
provide certain benefits to a surviving spouse, domestic
partner, or named beneficiary having an insurable interest
in the life of the member.
The City of Fresno contributes to the retirement plan
based upon actuarially determined contribution rates
adopted by the Board. Employer contribution rates are
adopted annually based upon recommendations received
from the Retirement System’s actuary after the
completion of the annual actuarial valuation. The average
employer contribution rate as of June 30, 2024 for
2023-2024 (based on the June 30, 2022 valuation) was
21.03 percent of compensation.
All members are required to make contributions to the
Retirement System. The average member contribution
rate as of June 30, 2024 for 2023-2024 (based on the June
30, 2022 valuation) was 9.00 percent of compensation.
Deferred Retirement Option Program
(DROP)
DROP is an optional voluntary program that allows a
member to have his or her retirement benefits deposited in
a special account within the System while the member
continues to work in his or her current position. It is a
voluntary method of receiving a distribution of retirement
benefits; it is not an additional retirement benefit.
DROP may not be beneficial to all members. Each
member must determine how the DROP option will affect
the member’s retirement benefits prior to making an
election to enter the DROP.
The member’s retirement benefits are determined as of
the date of entry into the DROP option and accumulate in
the member’s DROP account while the member continues
to work. Members entering DROP, after January 27,
2011 in accordance with ordinances that amended
sections of the City of Fresno Municipal Code, continue
making employee contributions.
City of Fresno Fire and Police Retirement System l FINANCIAL
Notes to the Basic Financial Statements Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 22
Eligibility: Any member who is eligible for a service
retirement and is age 50 with a minimum of 5 years of
service.
Participation Period: The maximum participation period is
ten years. Because the participation period cannot be
extended, the member must retire at its conclusion;
however, the member may end participation in DROP and
terminate employment with the City and begin retirement
at any time prior to the end of the ten-year period.
DROP Account: A DROP account is set up for each
participant; the monthly amount credited to DROP
accounts include an amount which represents the service
retirement allowance which the member would have
received if the member had retired on the date the
member commenced DROP participation. Interest is also
credited to the DROP account monthly at a rate which is
set annually by the Retirement Board. The rate is based
on the prior five-year moving average of net market
returns of the System's investments in accordance with the
City of Fresno Municipal Code requirements. The Board
is authorized to reduce the annual interest crediting rate
up to 3 percent, if necessary, to maintain DROP’s cost
neutrality.
A DROP account is a nominal, bookkeeping account
established within the System for each DROP participant.
Upon termination of DROP participation and retirement
from the City, a member receives the amounts credited to
their DROP account, including interest. In addition, the
member will also begin receiving his or her monthly
retirement allowance in the amount being credited to their
DROP account. The member may select a method of
withdrawing the money from his or her DROP account
from the options provided.
DROP Reserves, which represent funds reserved for
DROP benefits accumulated by active members and
retirees, were $157,476,331 and $158,723,516 as of June
30, 2024 and 2023, respectively.
Terminated Member Benefits
If a member terminates before earning five years of
credited service, the member forfeits the right to receive
his or her service retirement benefit and is entitled to
withdraw refundable contributions made, together with
accumulated interest. If the member enters a reciprocal
retirement system within 180 days (6 months) of
terminating employment with the City of Fresno and
elects to leave their accumulated contributions on deposit
with the System, then the member will receive a deferred
retirement allowance when eligible.
Death and Disability Benefits
Death benefits are based upon whether the death occurred
before or after retirement. Disability benefits are based
upon final average salary, years of credited service and
whether the member is over or under age 50 and whether
the permanent incapacity is found to be service-connected
(caused by the job) or ordinary (injury or illness not
caused by their job) disability. There is no minimum
service requirement before benefits are payable for
service-connected disability. However, in order to receive
ordinary disability benefits, the member must have
completed at least 10 years of service.
Cost-of-Living Benefits
Cost-of-living adjustment (COLA) increases for the Tier 1
retirees are determined by the increases attached to ranks
of active safety employees for those having retired under
the rank-average option. For those retired under the 3-
year average, COLA increases are based on the
percentage of change in the weighted mean average
monthly compensation attached to all ranks of members,
as compared with the prior fiscal year and limited to a
maximum of 5 percent per year.
City of Fresno Fire and Police Retirement System l FINANCIAL
Notes to the Basic Financial Statements Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 23
Tier 1 cost-of-living adjustments (COLA) depend on the
type of method chosen by the employee at retirement. If
the employee chose the Career Rank method, the COLA
is a recalculation of his/her retirement based on the new
salaries adopted for the current year. If the method chosen
by the retiree is the final 3-year method, the COLA is
based on the change in the weighted mean average
compensation attached to all ranks in the department with
a cap of five percent (5%) per year. Any excess over the
5% is banked for use in years when the COLA calculation
is less than 5%.
Cost-of-Living Adjustment (COLA) increases for the Tier
2 retirees will be determined by the change in the
Consumer Price Index (CPI) with a maximum of 3
percent per year. Provisions for the COLA increases are
outlined in the City of Fresno Municipal Code and
changes may be made only by code amendment.
Tier 2 COLAs are based on the change in the CPI (for all
Urban Wage Earners and all Clerical Workers – U.S. City
Average) as provided in the City of Fresno Municipal
Code. Retirement staff research the percentage change in
CPI and propose that percent to the Fire and Police
Retirement Board as the COLA to be adopted for the
following fiscal year. This procedure must be completed
by the end of April each year for implementation in
January of the following calendar year. The COLA is
limited to a three percent (3%) maximum change per year
and any excess over 3 percent is banked for the retiree for
use in a year where the percent of CPI change is less than
3 percent.
The Board adopted the annual COLA adjustments,
pursuant to Section 3-411, of 3.00 percent, January 1,
2024; 3.0 percent, January 1, 2023; and 1.5 percent,
effective January 1, 2022.
2 Summary of Significant
Accounting Policies
Reporting Entity
The Retirement System, with its own governing board, is
an independent governmental entity separate and distinct
from the City of Fresno. The System’s annual financial
statements are included in the City of Fresno Annual
Financial Report as a pension trust fund.
Basis of Accounting
The System’s financial statements are prepared using the
accrual basis of accounting and in accordance with
accounting principles generally accepted in the United
States of America (GAAP), under which revenues are
recognized when earned and deductions are recorded
when the liability is incurred. Employer and employee
contributions are recognized as revenue when due.
Contributions are recorded in the period the related
salaries are earned and become measurable. Investment
income is recognized when it is earned. The net
appreciation in fair value of investments held by the
System is recorded as an increase to investment income
based on the valuation of investments at fiscal year-end,
which includes both realized and unrealized gains and
losses on investments. Retirement benefits and refunds
are recognized when due and payable under the terms of
the plan and per Sections 3-322 and 3-324 of the City of
Fresno Municipal Code. Other expenses are recognized
when the corresponding liabilities are incurred.
Securities lending transactions are accounted for in
accordance with Governmental Accounting Standards
Board (GASB) Statement No. 28, Accounting and
Financial Reporting for Securities Lending Transactions,
which establishes reporting standards for securities
lending transactions. In accordance with Statement No.
28, cash received as collateral on securities lending
City of Fresno Fire and Police Retirement System l FINANCIAL
Notes to the Basic Financial Statements Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 24
transactions and investments made with that cash are
reported as assets and liabilities resulting from these
transactions and are both reported in the Statement of
Fiduciary Net Position. In addition, the costs of securities
lending transactions are reported as an expense in the
Statement of Changes in Fiduciary Net Position.
Investments
The System is authorized by the City of Fresno Municipal
Code and the policies of the Retirement Board to invest in
any form or type of investment deemed prudent by the
Board and does so through its Investment Objectives and
Policy Statement which establishes and outlines the
responsibilities of the various parties that are associated
with managing assets of the Retirement System,
consistent with applicable sections of the City of Fresno
Municipal Code, Federal laws and Article XVI, Section
17(c) of the Constitution of the State of California which
provides that “the member of the Retirement Board of a
public pension or retirement system shall discharge their
duties with the care, skill, prudence, and diligence under
the circumstances then prevailing that a prudent person
acting in a like capacity and familiar with these matters
would use in the conduct of an enterprise of a like
character and with like aim.”
System investments are reported at fair value. Fair value
is the amount that the System can reasonably expect to
receive for an investment in a current sale between a
willing buyer and seller, that is, other than in a forced or
liquidation sale. Fair value for investments of publicly
traded securities is stated at fair value based upon closing
sales prices reported on recognized securities exchanges
on the last business day of the period or, for listed
securities having no sales reported and for unlisted
securities, based upon last reported bid prices. All
purchases and sales of securities are accounted for on a
trade date basis and dividends declared but not received
are accrued on the ex-dividend date. Short-term
investments are reported at cost, which approximates fair
value. Securities traded on national or international
exchanges are valued at the last reported sales price at
current exchange rates. Investments in both bonds and
mortgage-backed pass-through certificates are carried at
fair value.
Cost values, as shown, are derived from Master Custodial
Transaction Records. The fair value of real estate
investments is based on independent appraisals.
Investments that do not have an established market are
reported at estimated fair values.
The asset allocation policy set by the Board, in
conjunction with the Employees Retirement Board, is
outlined in the Boards’ Investment Objectives and Policy
Statement. Plan assets are managed with a long-term
objective of achieving and maintaining a fully funded
status for the benefits provided by the System. The table
on the following page provides the Boards’ adopted asset
allocation policy as of June 30, 2024 and 2023.
City of Fresno Fire and Police Retirement System l FINANCIAL
Notes to the Basic Financial Statements Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 25
Asset Allocation Policy
As of June 30, 2024 and 2023
Asset Class FY 2024 FY 2023
Equity
Domestic 22.5%24.0%
International 18.0%20.0%
Private 6.5%5.0%
Rates/Credit
Core Fixed Income 13.0%13.0%
Private Debt/Credit 14.0%12.0%
Real Assets
Core Real Estate 9.0%10.0%
Non-Core Real Estate 6.0%5.0%
Infrastructure 7.0%7.0%
Multi-Asset
Alternative Credit 4.0%4.0%
Short-Term Investments 0.0%0.0%
100%100%
Estimates
The preparation of financial statements in accordance
with generally accepted accounting principles (GAAP)
requires the System administrator to make estimates and
assumptions that affect certain amounts and disclosures.
Accordingly, actual results may differ from those
estimates.
Reclassifications
Certain amounts presented in the prior year's data have
been reclassified to be consistent with the current year's
presentation. Such reclassifications had no effect on
previously reported fiduciary net position.
Implementation of New Accounting
Pronouncements
For the year ended June 30, 2024, the Board adopted and
the System implemented all applicable new GASB
pronouncements. The most recent pronouncement,
effective for fiscal year ended June 30, 2024, is provided
below.
GASB Statement No. 100 - Accounting Changes and
Error Corrections, was issued in June 2022. The primary
objective of this statement is to enhance accounting and
financial reporting requirements for accounting changes
and error corrections to provide more understandable,
reliable, relevant, consistent, and comparable information
for making decisions or assessing accountability. The
provisions of this standard are not currently applicable as
the System has had no changes in accounting principles or
error corrections during this period.
City of Fresno Fire and Police Retirement System l FINANCIAL
Notes to the Basic Financial Statements Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 26
3 Contributions
Authority to Collect
The responsibility for both City and employee
contributions to the System is mandated by the City of
Fresno Municipal Code Sections 3-319, 3-324, and 3-405.
Contributions are made by the members and the employer
at rates recommended by the System’s independent
actuary and adopted by the Board. All active members
are required to make contributions to the System.
Employee contribution rates vary in Tier 1 according to
entry age and are designed to provide funding for
approximately one-third of the retirement benefits. The
Tier 1 average member contribution rate as of June 30,
2024 for 2023-2024 (based on the June 30, 2022
valuation) was 0.00% of compensation for members not
in the DROP Program. The Tier 1 average member
contribution rate as of June 30, 2023 for 2022-2023
(based on the June 30, 2021 valuation) was 0.00% of
compensation.
Employee contribution rates in Tier 2 are established at
nine percent (9%) of pensionable base pay.
The City’s contribution rates are designed to provide
funding for the remaining regular retirement and cost-of-
living benefits, as well as all disability and survivors’
benefits. The aggregate employer contribution rate as of
June 30, 2024 for 2023-2024 (based on the June 30, 2022
valuation) was 21.08% of compensation. The aggregate
employer contribution rate as of June 30, 2023 for
2022-2023 (based on the June 30, 2021 valuation) was
20.34% of compensation.
One of the funding objectives of the System is to establish
contribution rates which, over time, will remain level as a
percentage of payroll unless the System benefit provisions
are changed.
Funding Status & Method
Comprehensive Actuarial Funding Policy and Actuarial
Cost Methodology for Funding Purposes
The Board adopted a Comprehensive Actuarial Funding
Policy on November 7, 2012. For the Fire & Police
Retirement System, that policy included a change in
actuarial cost methodology from the aggregate Entry Age
Normal funding method used for funding purposes to the
individual Entry Age Normal (EAN) method as this
individual EAN method is used by a substantial majority
of the retirement systems in California and nationwide.
More importantly, the Board made this change in actuarial
cost methodology due to the adoption of GASB
Statements No. 67 and 68, which substantially revises the
financial reporting requirements for governmental pension
plans and their sponsors.
Goals of the Actuarial Funding Policy:
• To achieve long-term full funding of the cost of
benefits provided by the System;
• To seek reasonable and equitable allocation of the
cost of benefits over time; and
• To minimize any volatility of the City’s contribution
to the extent reasonably possible, consistent with
other policy goals.
City of Fresno Fire and Police Retirement System l FINANCIAL
Notes to the Basic Financial Statements Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 27
Funding Requirements and Policy
Components
The System’s annual funding requirement is comprised of
a payment of the Normal Cost and a payment on the
Unfunded Actuarial Accrued Liability (UAAL) if
applicable. The Normal Cost and the amount of the
payment on UAAL are determined by three components
of the Board’s funding policy: 1) Actuarial Cost Method –
the techniques used to allocate the cost/liability of
retirement benefits to a given period; 2) Asset Smoothing
Method – the techniques that spread the recognition of
investment gains or losses over a period of time for the
purposes of determining the Actuarial Value of Assets
used in the actuarial valuation process; and 3)
Amortization Policy – the decisions on how, in terms of
duration and pattern, to fund the difference between the
Actuarial Accrued Liability and the Actuarial Value of
Assets in a systematic manner.
Using the Asset Smoothing Method, the investment gains
or losses of each valuation period, as a result of
comparing the actual market return to the expected market
return, are recognized in level amounts over five (5) years
in calculating the Actuarial Value of Assets.
As of June 30, 2024, the System does not have an
Unfunded Actuarial Accrued Liability (UAAL). The
Board’s Amortization Policy sets forth the amortization
procedures for funding any UAAL or amortization and
allocation of any available surplus in the System.
Any new UAAL as a result of actuarial gains or losses
identified in the annual valuation as of June 30 will be
amortized over a period of fifteen (15) years. Any new
UAAL as a result of any change in actuarial assumptions
or methods will be amortized over a period of twenty-five
(25) years. The amortization period for any increase in
UAAL as a result of any amendments to the System will
be amortized over a period of fifteen (15) years, while any
increase in UAAL resulting from a temporary retirement
incentive will be funded over a period not to exceed five
(5) years. UAAL shall be amortized over
“closed” (separate) amortization periods so that the
amortization period for each layer decreases by one year
with each actuarial valuation.
UAAL is amortized as a level percentage of payroll so
that the amortization amount in each year during the
amortization period shall be expected to be a level
percentage of covered payroll, taking into consideration
the current assumption for general payroll increase.
If an overfunding status exists (i.e., when the Valuation
Value of Assets exceeds the Unfunded Actuarial Accrued
Liability (UAAL), the System is considered to have a
surplus in the System as of a point in time), such actuarial
surplus and any subsequent surpluses will be amortized
over an “open” amortization period of twenty-five (25)
years.
City of Fresno Fire and Police Retirement System l FINANCIAL
Notes to the Basic Financial Statements Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 28
This amortization period of twenty-five years shall be
applicable to the provisions in the City of Fresno
Municipal Code Sections relating to the amortization
period used in the calculation of the Post Retirement
Supplement Benefit (PRSB). Any prior Unfunded
Actuarial Accrued Liability (UAAL) amortization layers
will be considered fully amortized, and any subsequent
UAAL will be amortized over fifteen (15) years as the
first of a new series of amortization layers.
The System uses a five-year smoothing of market gains
and losses to derive the actuarial value of assets. For the
fiscal year ended June 30, 2024, the actuarial value of
assets was $1.991 billion with a funded percentage of
114.9 percent on a valuation value of assets.
The progress being made towards meeting the System’s
funding objective through June 30, 2024 is illustrated in
the Schedule of Funding Progress shown in the Actuarial
Section on page 88.
Funding Policy
The City currently funds, at a minimum, the amounts
recommended by the actuary and approved by the
Retirement Board. Such amounts are determined using
the individual entry age normal funding method applied to
the projected benefits in determining the Normal Cost and
Actuarial Accrued Liability. If there is a positive
(Surplus) or negative (Unfunded) difference between the
Valuation of Assets and the Actuarial Accrued Liability
(AAL), the amortization policy determines the
amortization of the Unfunded Actuarial Accrued Liability
(UAAL) on a level percentage of payroll needed to fund
the UAAL or the amount of available surplus which
would be distributable in any given year. This method
produces an employer contribution rate consisting of
amounts for (a) normal cost and (b) amortization of any
unfunded (UAAL) or prefunded (PAAL) actuarial
accrued liability.
These minimum contributions are recognized currently in
the Statement of Changes in Fiduciary Net Position.
Employees' contributions are funded and recognized
currently through payroll deductions in amounts
recommended by the actuary. Costs of administering the
System are charged against System assets.
Total contributions to the System for fiscal year 2024
totaled $43,743,009. Employees (members in both tiers)
contributed $13,107,833 and the City made (basic and
cost-of-living adjustments (COLA)) contributions of
$30,635,176. For fiscal year 2023, total contributions to
the system totaled $39,121,622. Employees (members in
both tiers) contributed $12,053,687 and the City made
(basic and cost-of-living adjustments (COLA))
contributions of $27,067,935.
First Tier
Contributions aggregating $-41,040 ($-54,098 net
employer and $13,058 employee) were made in fiscal
year 2024, based on an actuarial valuation determined as
of June 30, 2022, which became effective for the year
ended June 30, 2024. For fiscal year 2024, the employer
contribution rate was set at 30.25 percent; however, only a
cash contribution of $-54,098 was required from the City
due to the difference between actual and the estimated
June 30, 2022 surplus allocated to the City in the June 30,
2021 valuation for offsetting the City’s contributions for
the 2022/2023 plan year. Based on the June 30, 2022
actuarial valuation, the employer contributions represent
21.08 percent of the fiscal year 2024 covered payroll.
Although the June 30, 2022 actuarial valuation shows the
employee contribution rate of 0.00 percent for Tier 1,
because there are no new Tier 1 members, the actual
employee contributions represent 6.22 percent of covered
payroll for those active members participating in DROP.
City of Fresno Fire and Police Retirement System l FINANCIAL
Notes to the Basic Financial Statements Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 29
Contributions aggregating $50,301 ($6,991 net employer
and $43,310 employee) were made in fiscal year 2023,
based on an actuarial valuation determined as of June 30,
2021, which became effective for the year ended June 30,
2023. For fiscal year 2023, the employer contribution rate
was set at 29.80 percent; however, only a cash
contribution of $6,991 was required from the City due to
the difference between actual and the estimated June 30,
2021 surplus allocated to the City in the June 30, 2020
valuation for offsetting the City’s contributions for the
2021/2022 plan year. Based on the June 30, 2021
actuarial valuation, employer and employee contributions
represented 20.34 percent and 0.00 percent, respectively,
of the fiscal year 2023 covered payroll.
Second Tier
Contributions aggregating $43,784,049 ($30,689,274 net
employer and $13,094,775 employee) were made in fiscal
year 2024, based on an actuarial valuation determined as
of June 30, 2022, which became effective for the year
ended June 30, 2024. For fiscal year 2024, the employer
contribution rate was set at 25.47 percent; however, only a
cash contribution of $30,689,274 was required from the
City due to the difference between actual and the
estimated June 30, 2022 surplus allocated to the City in
the June 30, 2021 valuation for offsetting the City’s
contributions for the 2022/2023 plan year. Employer and
employee contributions represented 21.10 percent and
9.00 percent, respectively, of the fiscal year 2024 covered
payroll.
Contributions aggregating $39,071,321 ($27,060,944 net
employer and $12,010,377 employee) were made in fiscal
year 2023, based on an actuarial valuation determined as
of June 30, 2021, which became effective for the year
ended June 30, 2023. For fiscal year 2023, the employer
contribution rate was set at 25.35 percent; however, only a
cash contribution of $27,060,944 was required from the
City due to the difference between actual and the
estimated June 30, 2021 surplus allocated to the City in
the June 30, 2020 valuation for offsetting the City’s
contributions for the 2021/2022 plan year. Employer and
employee contributions represented 20.27 percent and
9.00 percent, respectively, of the fiscal year 2023 covered
payroll.
Contributions Required and Contributions
Made
The City’s normal contributions to the Fire and Police
Retirement System for 2024 were estimated in accordance
with actuarially determined requirements computed
through an actuarial valuation performed as of June 30,
2022, and are shown on the following page:
City of Fresno Fire and Police Retirement System l FINANCIAL
Notes to the Basic Financial Statements Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 30
Actuarial Rates as a Percentage of Pensionable Payroll
Effective Effective
FY 24 FY 23
Employer Normal (First Tier)30.25%29.80%
Employer Normal (Second Tier)25.47%25.35%
Normal Cost
FY 2024
Tier 1 Tier 2 Total
Employee Contributions $ 13,058 $ 13,094,775 $ 13,107,833
Employer Contribution Rate 30.25 % 25.47 %
Employer Contributions $ 63,537 $ 37,048,332 $ 37,111,869
Prior Year Contribution (Surplus)/Shortfall (117,635)(6,359,058)(6,476,693)
Net Employer Contributions $ (54,098) $ 30,689,274 $ 30,635,176
Pensionable Payroll $ 210,041 $ 145,458,703 $ 145,668,744
FY 2023
Tier 1 Tier 2 Total
Employee Contributions $ 43,310 $ 12,010,377 $ 12,053,687
Employer Contribution Rate 29.80 % 25.35 %
Employer Contributions $ 79,709 $ 33,838,433 $ 33,918,142
Prior Year Contribution (Surplus)/Shortfall (72,718)(6,777,489)(6,850,207)
Net Employer Contributions $ 6,991 $ 27,060,944 $ 27,067,935
Pensionable Payroll $ 766,658 $ 133,484,944 $ 134,251,602
4 Net Pension Liability
The components of the net pension liability of the System are as follows:
Schedules of Changes in the System’s Net Pension Liability (GASB 67)
As of June 30, 2024 and 2023
(In Thousands)
As of As of
June 30, 2024 June 30, 2023
Total Pension Liability $1,996,002 $1,865,741
Plan Fiduciary Net Position ($2,203,371)($2,045,837)
Net Pension Liability/(Surplus)($207,369)($180,096)
Plan Fiduciary Net Position as a percentage of the total pension liability 110.39%109.65%
The net pension liability was measured as of June 30, 2024 and 2023, and determined based upon the total pension liability
(on a GASB 67 basis) from actuarial valuations as of June 30, 2024 and 2023, respectively.
City of Fresno Fire and Police Retirement System l FINANCIAL
Notes to the Basic Financial Statements Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 31
Actuarial Assumptions
Key Methods and Assumptions Used in Valuation
of Total Pension Liability
The total pension liability as of June 30, 2024 was determined by an actuarial valuation as of June 30, 2024, using the
following actuarial assumptions, applied to all periods included in the measurement:
Valuation Date June 30, 20241
Actuarial Experience Study 3 Year Period Ending June 30, 2021
Actuarial Cost Method Entry Age Normal Actuarial Cost Method
Normal Cost and Actuarial Accrued Liability are calculated on an individual basis and
are based on costs allocated as a level percentage of compensation.
Actuarial Assumptions
Inflation: 2.50%
Salary Increases: 4.00% to 13.00%, varying by service, including inflation
Discount Rate: 6.75%, net of pension plan investment expense, including inflation
Other Assumptions: See June 30, 2024 funding valuation for the service retirement rates after they have been
adjusted to treat DROP participation as service retirement.
Mortality Rates: Healthy Members • Pub-2010 Safety Healthy Retiree Amount-Weighted Mortality Table
(separate tables for males and females), projected generationally with the two-
dimensional mortality improvement scale MP-2021.
Beneficiaries Not Currently in Pay Status • Pub-2010 General Healthy Retiree Amount-
Weighted Mortality Table (separate tables for males and females) with rates increased by
5%, projected generationally with the two-dimensional mortality improvement scale
MP-2021.
Beneficiaries in Pay Status • Pub-2010 Contingent Survivor Amount-Weighted Mortality
Table (separate tables for males and females) with rates increased by 5%, projected
generationally with the two-dimensional mortality improvement scale MP-2021.
Disabled Members • Pub-2010 Safety Disabled Retiree Amount-Weighted Mortality
Table (separate tables for males and females), projected generationally with the two-
dimensional mortality improvement scale MP-2021.
City of Fresno Fire and Police Retirement System l FINANCIAL
Notes to the Basic Financial Statements Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 32
1 Actuarially determined contribution rates are calculated as of June 30, two years prior to the end of the fiscal year in which contributions are reported. As
such, the actuarial valuations dated June 30, 2024 and 2023, will impact the contribution rates for the fiscal years ended June 30, 2026 and 2025.
The valuation interest rate is 6.75 percent; total salary
scale increases range between 4.00% to 13.00% (include
2.50 percent for inflation plus 0.50 percent across the
board salary increase plus merit and promotion increases
based on completed years of service) were based on the
June 30, 2021 Experience Analysis and Economic
Assumptions Reports.
Actuarial valuations of an ongoing plan involve estimates
of the fair value of reported amounts and assumptions
about the probability of occurrence of events far into the
future. Examples include assumptions about future
employment, mortality, inflation and investment returns.
Amounts determined regarding the funded status of the
plan and the annual required contributions of the
employer are subject to continual revisions as actual
results are compared with past expectations and new
estimates are made about the future.
GASB Statement No. 67 (GASB 67) addresses
accounting and financial reporting requirements for
pension plans and redefines pension liability and expense
for financial reporting purposes, and does not apply to
contribution amounts for pension funding purposes.
When measuring pension liability under GASB Statement
No. 67, the actuary uses the same actuarial cost method
(Entry Age method) and the same type of discount rate
(expected return on assets) as the System uses for
funding. Note that, unrelated to the investment return
assumption, the new rules use a version of the Entry Age
method where the Total Pension Liability (TPL) for
financial reporting purposes must be fully accrued by the
time a member either enters DROP or is expected to elect
the DROP. This is in contrast to the version of the Entry
Age method used for funding, where the Actuarial
Accrued Liability (AAL) does not have to be fully
accrued until members retire from employment after
participation in the DROP. Under GASB Statement No.
67, active members who are expected to enroll in the
DROP in the future would report a Service Cost that is
higher than the Normal Cost used for funding, while
members already in the DROP would report no Service
Cost even though their Normal Cost continues to accrue.
Long-Term Expected Real Rate of Return
The long-term expected rate of return on the System’s
investments was determined using a building-block
method in which expected future real rates of return
(expected returns, net of pension plan investment expense
and net of inflation) are developed for each major asset
class. This information is combined to produce the long-
term expected rate of return by weighting the expected
future real rates of return by the target asset allocation
percentage and by adding expected inflation and
deducting expected investment expenses and a risk
margin. The target allocation and projected arithmetic real
rates of return for each major asset class, after deducting
inflation, but before deducting investment expenses, used
in the derivation of the long-term expected investment
rate of return assumption are summarized in the table on
the following page.
The actual asset class target allocations from the Board’s
current adopted Asset Allocation Target Policy were
utilized in the Analysis of Actuarial Experience during the
period July 1, 2018 through June 30, 2021 and for the
Review of Economic Actuarial Assumptions for the June
30, 2024 and June 30, 2023 Actuarial Valuations.
City of Fresno Fire and Police Retirement System l FINANCIAL
Notes to the Basic Financial Statements Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 33
Asset Class/Target Allocation/Long-term Expected
Real Rate of Return Table
As of June 30, 2024 As of June 30, 2023
Asset Class
Target
Asset
Allocation
Weighted Average
Long-Term Expected
Real Rate of Return*
(Arithmetic)
Target
Asset
Allocation
Weighted Average
Long-Term Expected
Real Rate of Return*
(Arithmetic)
Large Cap U.S. Equity 18.00%5.40%18.00%5.40%
Small Cap U.S. Equity 3.00%6.17%3.00%6.17%
Developed International Equity 13.00%6.13%13.00%6.13%
Emerging Market Equity 5.00%8.17%5.00%8.17%
Private Equity 8.00%10.83%8.00%10.83%
Core Bonds 12.00%0.39%12.00%0.39%
Private Debt/Direct Lending 14.00%5.93%14.00%5.93%
Real Estate 15.00%4.59%15.00%4.59%
Private Credit - Credit Opportunities 2.50%7.18%2.50%7.2%
China Equity 1.25%9.53%1.25%9.5%
Hedge Fund - Macro 1.25%2.72%1.25%2.7%
Private Real Assets - Infrastructure/Land 7.00%6.19%7.00%6.19%
Total 100.0%100.0%
* Based on the results of an experience study for the period from July 1, 2018 through June 30, 2021.
Mortality Rates
Mortality rates used in the latest actuarial valuation are
based on the Pub-2010 mortality tables. For healthy
members, the Pub-2010 Safety Healthy Retiree Amount-
Weighted Mortality Table (separate tables for males and
females) is used, projected generationally with the two-
dimensional mortality improvement scale MP-2021. For
beneficiaries, the Pub-2010 General Healthy Retiree
Amount-Weighted Mortality Table (separate tables for
males and females) times 105% is used, projected
generationally with the two-dimensional mortality
improvement scale MP-2021. For members that are
disabled, the Pub-2010 Safety Disabled Retiree Amount-
Weighted Mortality Table (separate tables for males and
females) is used, projected generationally with the two-
dimensional mortality improvement scale MP-2021.
Discount Rate
The discount rate used to measure the total pension
liability was 6.75 percent as of June 30, 2024 and 2023.
The projection of cash flows used to determine the
discount rate assumed plan member contributions will be
made at the current contribution rate and that employer
contributions will be made at rates equal to the actuarially
determined contribution rates. For this purpose, only
employer contributions that are intended to fund benefits
for current plan members and their beneficiaries are
included. Projected employer contributions that are
intended to fund the service costs for future plan members
and their beneficiaries, as well as projected contributions
from future plan members, are not included. Based on
those assumptions, the pension plan's fiduciary net
position was projected to be available to make all
projected future benefit payments for current plan
members.
City of Fresno Fire and Police Retirement System l FINANCIAL
Notes to the Basic Financial Statements Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 34
Therefore, the long-term expected rate of return on the
System’s investments was applied to all periods of
projected benefit payments to determine the total pension
liability as of both June 30, 2024 and June 30, 2023.
The table below presents the net pension liability of the
Retirement System calculated using the discount rate of
6.75 percent as of June 30, 2024 and 2023, as well as
what the System’s net pension liability would be if it were
calculated using a discount rate that is 1.00 percent lower
or 1.00 percent higher than the current rate:
Sensitivity of Net Pension Liability to Changes in the Discount Rate
As of June 30, 2024 and 2023 (In Thousands)
1%Current 1%
Decrease Discount Rate Increase
Net Pension Liability/(Surplus)5.75%6.75%7.75%
June 30, 2024 $69,861 ($207,369)($430,418)
1%Current 1%
Decrease Discount Rate Increase
Net Pension Liability/(Surplus)5.75%6.75%7.75%
June 30, 2023 $76,084 ($180,096)($386,356)
5 Net Position Restricted for
Pension Benefits
Net position restricted for pension benefits is segregated
into Active Members Reserves (members’ accumulated
contributions) and reserves established by the Board for
various benefit payments.
Reserves are established by the System from member and
employer contributions and the accumulation of
investment income after satisfying investment and
administrative expenses. Note: The reserves do not
represent the present value of assets needed, as
determined by actuarial valuation, to satisfy retirements
and other benefits as they become due.
The System’s major reserves are as
follows:
ACTIVE MEMBER (EMPLOYEE) RESERVES
represent the total accumulated member contributions.
Additions include member contributions and investment
earnings; deductions include refunds of member
contributions and transfers to Employer Advance/Retired
Reserves.
EMPLOYER ADVANCE/RETIRED RESERVES
represent the total accumulated employer contributions
for future retirement payments to current active members
and vested terminated members, and the total
accumulated transfers from Active Member Reserves and
investment earnings, less payments to retirees and
City of Fresno Fire and Police Retirement System l FINANCIAL
Notes to the Basic Financial Statements Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 35
transfers to the DROP Reserves. Additions include
contributions from the employer, transfers from Active
Member Reserves, and investment earnings; deductions
include payments to retirees and transfers to the DROP
Reserves.
DEFERRED RETIREMENT OPTION PROGRAM
(DROP) RESERVES represent funds reserved for
Deferred Retirement Option Benefits accumulated by
members and retirees.
POST RETIREMENT SUPPLEMENTAL
BENEFIT (PRSB) RESERVES represent surplus
earnings that have been allocated but not distributed to
eligible participants in accordance with the City of Fresno
Municipal Code Section 3-354 Post-Retirement
Supplemental Benefit.
CITY SURPLUS RESERVES represent surplus
earnings that have been allocated but not used as a
reduction to offset or eliminate the City’s pension
contributions in accordance with the conditions and
requirements of the City of Fresno Municipal Code
Section 3-354 Post-Retirement Supplemental Benefit.
Interest is allocated at an actuarially determined interest
rate as approved by the Board and is credited monthly to
the Active Member Reserves and the Employer Advance/
Retired Reserves. Active members in the Deferred
Retirement Option Program accrue interest on their
accumulated DROP accounts monthly at an interest rate
annually adopted by the Board.
The amount of reserves as of the years ended June 30,
2024 and 2023, consisted of the following:
Reserves Table as of June 30, 2024 and 2023
(In Thousands)
2024 2023
Employer Advance/Retired Reserves $ 1,812,431 $ 1,665,409
Active Member (Employee) Reserves 231,916 219,157
DROP Reserves 157,476 158,724
PRSB Reserves 2,159 2,672
City Surplus Reserves (611) (125)
Net Position Restricted for Pension Benefits $ 2,203,371 $ 2,045,837
City of Fresno Fire and Police Retirement System l FINANCIAL
Notes to the Basic Financial Statements Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 36
6 Fair Value Measurements
In accordance with GASB Statement No. 72, Fair Value
Measurement and Application, which addresses
accounting and financial reporting issues related to fair
value measurements and disclosures, the System’s
investments are measured and reported within the fair
value hierarchy established by generally accepted
accounting principles. The fair value hierarchy, which has
three levels, is based on the valuation inputs used to
measure an asset’s fair value and gives the highest priority
to unadjusted quoted prices in active markets for identical
assets or liabilities (Level 1 measurements) and the lowest
priority to unobservable inputs (Level 3 measurements).
The three levels of the fair value hierarchy are as follows:
Level 1: Inputs are based on quoted prices for identical
assets or liabilities in an active market that the System can
access. An active market for the asset or liability is one in
which transactions for the asset or liability occur with
sufficient frequency and volume to provide pricing
information on an ongoing basis. A quoted price in an
active market usually provides the most reliable evidence
of fair value and is generally used without adjustment if
available. This classification includes public equities with
observable market prices.
Level 2: Inputs that are observable either directly or
indirectly but are not Level 1 inputs. Level 2 inputs
include quoted prices for similar instruments, broker
quotes, or observable inputs that directly impact value
such as interest rates, prepayment speeds, and credit risk.
Pricing inputs, including broker quotes, are generally
those other than exchange quoted prices in active markets,
and fair values are determined through the use of models
or other valuation methodologies. For investments in
funds where there is an ability to redeem such investments
at the Net Asset Value (NAV) per share (or its equivalent)
at the measurement date or in the near term, the fair value
of the investment is generally categorized as Level 2.
Level 3: Inputs that are unobservable. Level 3 inputs
are generally used in situations where there is little, if any,
market activity for the investment. These inputs into the
determination of fair value require significant
management judgment or estimation. Due to the inherent
uncertainty of these estimates, these values may differ
significantly from the values that would have been used
had a ready market for these investments existed.
Investments that are included in this category generally
include public entities and other fixed income securities
where there is an inability to redeem such investments at
the NAV per share (or its equivalent) at the measurement
date or in the near term.
The tables on the following pages show the fair value
leveling of the System’s investments as of June 30, 2024
and 2023.
City of Fresno Fire and Police Retirement System l FINANCIAL
Notes to the Basic Financial Statements Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 37
Fair Value Measurements Using
Investment Type June 30, 2024
Quoted Prices in
Active Markets
for Identical Assets
(Level 1)
Significant Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Investments by Fair Value Level
Debt Securities
Asset Backed Securities $ 29,513,992 $ — $ 29,513,992 $ —
Commercial Mortgage-Backed 16,240,150 — 16,240,150 —
Corporate Bonds 80,826,688 — 80,826,688 —
Government Agencies 3,969,796 — 3,969,796 —
Government Bonds 20,656,034 — 20,656,034 —
Government Mortgage-Backed Securities 88,602,048 — 88,602,048 —
Gov't-Issued Commercial Mortgage-Backed 343,313 — 343,313 —
Index Linked Government Bonds 674,428 — 674,428 —
Municipal/Provincial Bonds 1,911,486 — 1,911,486 —
Non-Government Backed CMOs 1,568,874 — 1,568,874 —
Total Debt Securities 244,306,809 — 244,306,809 —
Equity Securities
Consumer Discretionary 32,817,717 32,817,717 — —
Consumer Staples 14,751,297 14,751,297 — —
Energy 9,197,466 9,197,466 — —
Financials 51,902,209 51,902,209 — —
Health Care 17,852,740 17,852,740 — —
Industrials 44,495,769 44,495,769 — —
Information Technology 52,294,418 52,294,418 — —
Materials 13,376,387 13,376,379 — 8
Miscellaneous — — — —
Real Estate 235,934 235,934 — —
Telecommunication Services 20,415,094 20,415,094 — —
Utilities 848,824 848,824 — —
Total Equity Securities 258,187,855 258,187,847 — 8
Securities Lending 30,048,536 30,048,536 — —
Short-Term Investments 8,156,362 8,156,362 — —
Private Real Estate Holdings 3,500,000 — 3,500,000 —
Total Investments by Fair Value Level $ 544,199,562
Investments Measured at the Net Asset Value (NAV)
Commingled Fund - Equities $ 709,903,872
Commingled Fund - Real Estate 185,661,457
Commingled Fund - Infrastructure 126,869,414
Private Real Estate Funds 148,018,363
Private Debt/Private Credit 330,873,231
Private Equity 159,953,529
Total Investments Measured at NAV 1,661,279,866
Total Investments Measured at Fair Value and NAV $ 2,205,479,428
Investment Derivative Instruments*
Debt Securities - Futures $ 27,071,469 $ 27,071,469 $ — $ —
Rights/Warrants 980 980 — —
Total Investment Derivative Instruments $ 27,072,449 $ 27,072,449 $ — $ —
* Short-term derivative instruments included on page 51 are excluded here.
City of Fresno Fire and Police Retirement System l FINANCIAL
Notes to the Basic Financial Statements Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 38
Fair Value Measurements Using
Investment Type June 30, 2023
Quoted Prices in
Active Markets
for Identical Assets
(Level 1)
Significant Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Investments by Fair Value Level
Debt Securities
Asset Backed Securities $ 32,578,043 $ — $ 32,523,398 $ 54,645
Commercial Mortgage-Backed 12,548,700 — 12,543,293 5,407
Corporate Bonds 82,161,645 — 82,161,645 —
Corporate Convertible Bonds — — — —
Government Agencies 3,860,008 — 3,860,008 —
Government Bonds 15,920,835 — 15,920,835 —
Government Mortgage-Backed Securities 82,913,339 — 82,913,339 —
Gov't-Issued Commercial Mortgage-Backed 660,572 — 660,572 —
Municipal/Provincial Bonds 2,660,586 — 2,660,586 —
Non-Government Backed CMOs 2,687,011 — 2,687,011 —
Total Debt Securities 235,990,739 — 235,930,687 60,052
Equity Securities
Consumer Discretionary 44,311,250 44,311,250 — —
Consumer Staples 22,470,665 22,470,665 — —
Energy 6,365,979 6,365,979 — —
Financials 59,868,267 59,868,267 — —
Health Care 17,516,908 17,516,908 — —
Industrials 53,011,673 53,011,673 — —
Information Technology 52,449,520 52,449,520 — —
Materials 17,356,972 17,356,964 — 8
Miscellaneous 4 4 — —
Real Estate 471,310 471,310 — —
Telecommunication Services 13,883,875 13,883,875 — —
Utilities 1,959,525 1,959,525 — —
Total Equity Securities 289,665,948 289,665,940 —8
Securities Lending 27,067,056 27,067,056 — —
Short-Term Investments 10,553,296 10,553,296 — —
Private Real Estate Holdings 3,500,000 — 3,500,000 —
Total Investments by Fair Value Level $ 566,777,039
Investments Measured at the Net Asset Value (NAV)
Commingled Fund - Equities $ 674,792,756
Commingled Fund - Real Estate 208,076,502
Commingled Fund - Infrastructure 118,874,136
Private Real Estate Funds 99,646,166
Private Debt/Private Credit 272,107,233
Private Equity 123,441,214
Total Investments Measured at NAV 1,496,938,007
Total Investments Measured at Fair Value and NAV $ 2,063,715,046
Investment Derivative Instruments*
Debt Securities - Futures $ 10,990,567 $ 10,990,567 $ — $ —
Rights/Warrants 4 4 — —
Total Investment Derivative Instruments $ 10,990,571 $ 10,990,571 $ — $ —
* Short-term derivative instruments included on page 51 are excluded here.
City of Fresno Fire and Police Retirement System l FINANCIAL
Notes to the Basic Financial Statements Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 39
Commingled equity and real estate funds are valued based
on NAV reported by the investment manager, which are
generally calculated based on the last reported sale price
of the underlying assets held by such funds. Direct
lending funds are typically structured as limited
partnerships and limited liability companies. Since there
is no readily available market for these investments in
limited partnerships and limited liability companies, such
investments are stated at fair value as estimated in an
inactive market. These investments include securities of
companies that may not be immediately liquid, such as
private debt securities, real estate or other assets. The
valuations of these investments are based upon values
provided by the investment managers, based on the
guidelines established with the investment managers and
in consideration of other factors related to the System’s
interests in these investments.
Investments that are measured at fair value using the net
asset value per share (NAV or its equivalent) as a
practical expedient are not classified in the fair value
hierarchy. In these instances where inputs used to measure
fair value fall into different levels in the fair value
hierarchy, fair value measurements in their entirety are
categorized based on the lowest level input that is
significant to the valuation. The System’s assessment of
the significance of particular inputs to these fair value
measurements requires judgment and considers factors
specific to each asset or liability.
Equity and derivative securities classified in Level 1 are
valued using prices quoted in active markets for those
securities. Equity and debt securities classified in Level 2
and Level 3 are using either a bid evaluation or a matrix
pricing technique. Bid evaluations may include market
quotations, observable market based inputs and
unobservable inputs (i.e., extrapolated data, proprietary
models, and indicative quotes).
Matrix pricing is used to value securities based on the
securities relationship to benchmark quoted prices.
Investment derivative instruments classified as Levels 2
and 3 are valued using market approaches that consider,
as applicable, benchmark interest rates or foreign
exchange rates.
Real estate assets classified in Level 2 are the System’s
private real estate investments which are valued using
independent external appraisers. The System’s policy is to
perform independent appraisals of the property every
three years. The appraisals include a complete property
and market inspection and analysis by designated
Members of the Appraisal Institute (MAI). The appraisals
are performed using generally accepted valuation
approaches applicable to the property type. Calculations
used in the System’s independent appraisals are generally
based on a discounted cash flow analysis.
Investments in Entities That Calculate Net
Asset Value Per Share
The fair value measurement of investments in
commingled equity, real estate and direct lending funds
are valued based on the investments’ net asset value
(NAV) per share (or its equivalent) reported by the
investment manager, which are generally calculated based
on the last reported sale price of the underlying assets
held by such funds. These include funds that are
structured as limited partnerships and limited liability
companies.
Since there is no readily available market for investments
in limited partnerships and limited liability companies,
such investments are stated at fair value as estimated in an
inactive market. These investments include securities of
companies that may not be immediately liquid, such as
private debt securities and real estate or other assets.
City of Fresno Fire and Police Retirement System l FINANCIAL
Notes to the Basic Financial Statements Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 40
The valuations of these investments are based upon values
provided by the investment managers, and in
consideration of other factors, including guidelines
established with those investment managers, related to the
System’s interests in these investments.
Such fair value measurements are shown in the tables
below as of June 30, 2024 and 2023.
City Of Fresno Fire and Police Retirement System
Investments Measured at the NAV
As of June 30, 2024
Investment Type Fair Value
Unfunded
Commitments
Redemption
Frequency
(If Currently
Eligible)
Redemption
Notice
Period
Commingled Fund - Equities $ 709,903,872 $ — Daily None
Commingled Fund - Real Estate 185,661,457 — Quarterly 45-90 Days
Commingled Fund - Infrastructure 126,869,414 — Not Eligible N/A
Private Real Estate Funds 148,018,363 77,927,940 Not Eligible N/A
Private Debt/Private Credit 330,873,231 142,001,874 Not Eligible N/A
Private Equity 159,953,529 125,936,560 Not Eligible N/A
Total investments measured at the NAV $ 1,661,279,866 $ 345,866,374
City Of Fresno Fire and Police Retirement System
Investments Measured at the NAV
As of June 30, 2023
Investment Type Fair Value
Unfunded
Commitments
Redemption
Frequency
(If Currently
Eligible)
Redemption
Notice
Period
Commingled Fund - Equities $ 674,792,756 $ — Daily None
Commingled Fund - Real Estate 208,076,502 — Quarterly 45-90 Days
Commingled Fund - Infrastructure 118,874,136 — Not Eligible N/A
Private Real Estate Funds 99,646,166 70,929,472 Not Eligible N/A
Private Debt/Private Credit 272,107,233 166,763,606 Not Eligible N/A
Private Equity 123,441,214 68,961,079 Not Eligible N/A
Total investments measured at the NAV $ 1,496,938,007 $ 306,654,157
On the following page is an explanation of the investment types listed above.
City of Fresno Fire and Police Retirement System l FINANCIAL
Notes to the Basic Financial Statements Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 41
The investment types listed in the tables on the preceding
page were measured at the NAV as follows.
(1) Commingled equity funds are highly
liquid and can be redeemed within short-term periods of
time. The System’s investments of this type consist of
institutional investment funds - one international
ACWIexUS equity fund that is diversified across
developed and emerging market countries and sectors and
two domestic large cap equity index funds (S&P 500
Index and Russell 1000 Index). The fair value of these
investment types has been determined using the NAV per
share of the investments.
(2) Commingled real estate fund: The
System’s commingled real estate funds are a core
investment strategy designed to deliver a relatively high
level of current income combined with moderate
appreciation potential. It is comprised of institutional
quality office, retail, residential and industrial investments
in major markets throughout the U.S. The redemption
frequency of the real estate fund is quarterly, if liquidity is
available, with a notice of redemption 45 days before the
end of a quarter.
(3) Private real estate funds: The System’s
private real estate funds are designed to act as a diversifier
and alpha generator to the core real estate portfolio.
Investments are made in middle-market assets across
various domestic and international regions and sectors
such as industrial, multifamily, office, and retail. The
strategies focus on identifying investments with pricing
dislocations that can be renovated, repurposed, and exited
at opportunistic levels. The investment period is
generally 3-5 years with a lifespan of 10-12 years.
(4) Private Debt/Private Credit - direct
lending funds: The System’s direct lending funds are each
invested through a master-feeder structure, on a leveraged
basis primarily in senior secured loans of private U.S.
lower-middle-market companies. Strategies employ a
capital preservation focus and structured investments with
strong covenant provisions to reduce associated risks,
underwriting multiple cushions to provide downside
protections. The investment period is generally 3-5 years
with reinvestment of committed capital.
(5) Commingled infrastructure funds: The
System’s infrastructure funds invest in core assets that
generate long-term stable cash yields, have modest price
appreciation, and provide inflation protection. Types of
assets include energy (water, wind, and solar, etc.),
transportation (toll roads and bridges, airports, and
seaports, etc.), and social (hospitals, prisons, and schools,
etc.). Investments are located domestically as well as in
the Organization for Economic Co-operation and
Development (OECD) countries internationally. Each
fund has lockup periods of 4 years and, after that initial
period, redemptions can be requested on a quarterly basis,
if liquidity is available.
(6) Private Equity Funds: The System’s
private equity fund represents investments in privately
owned companies that are not listed on public market
exchanges. They are typically accessed through
partnerships and managed by external general partners.
The System’s one private equity fund is composed of
primaries, secondaries, and co-investments, split between
North America and international markets. Most
investments are sourced from the small-to-mid market
investment universe.
City of Fresno Fire and Police Retirement System l FINANCIAL
Notes to the Basic Financial Statements Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 42
7 Deposits and Investments
The System’s investment guidelines reflect the duties imposed by an investment standard known as the “prudent expert rule.”
The prudent expert rule establishes a standard for all fiduciaries which includes anyone who has discretionary authority with
respect to the System’s investments.
Northern Trust serves as custodian of the System’s investments. The System’s asset classes include U.S. Equity,
International Equity, Private Equity, Fixed Income, Private Debt/Credit, Real Assets and Multi-Assets. Any class may be
held in direct form, pooled form, or both. The System has twenty-eight external investment managers, managing thirty-five
individual portfolios. Investments as of June 30, 2024 and 2023, consist of the following:
Investments at Fair Value as of June 30, 2024 and 2023
(In Thousands)
2024 2023
Investments at Fair Value
Domestic Equities $ 536,005 $ 518,942
International Equities 431,079 444,536
Private Equity 159,954 123,441
Fixed Income 272,387 247,962
Private Debt/Credit 295,521 253,290
Real Assets 464,049 430,097
Multi-Assets 35,352 18,817
Short-Term Investments 8,156 10,554
Total Investments at Fair Value $ 2,202,503 $ 2,047,639
City of Fresno Fire and Police Retirement System l FINANCIAL
Notes to the Basic Financial Statements Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 43
The Board, through its Investment Policy Statement, provides guidelines for investments and established the following target
allocations with a minimum and maximum range for each of these asset classes:
Asset Class Minimum Target and Maximum Allocations
FY 2024 FY 2023
Asset Class Minimum Target Maximum Minimum Target Maximum
Equity
Domestic 15.0%22.5%36.0%15.0%24.0%36.0%
International 10.0%18.0%25.0%10.0%20.0%25.0%
Private 0.0%6.5%10.0%0.0%5.0%10.0%
Rates/Credit
Core Fixed Income 5.0%13.0%20.0%5.0%13.0%20.0%
High Yield Fixed Income 0.0%0.0%0.0%0.0%0.0%5.0%
Private Debt/Credit 5.0%14.0%20.0%5.0%12.0%20.0%
Real Assets
Core Real Estate 5.0%9.0%15.0%5.0%10.0%15.0%
Non-Core Real Estate 2.0%6.0%8.0%2.0%5.0%8.0%
Infrastructure 2.0%7.0%10.0%2.0%7.0%10.0%
Multi-Asset
Alternative Credit 0.0%4.0%7.0%0.0%4.0%7.0%
Short-Term Investments 0.0%0.0%0.0%0.0%0.0%0.0%
100%100%
Allowable securities must meet the reporting
requirements of the Securities and Exchange Commission
and must meet a “prudent expert” standard for investing.
In no case may the System have five percent (5%) or
more of System net position invested in any one
organization.
The Retirement Board’s investment policies and
guidelines permit investment in numerous specified asset
classes to take advantage of the non-correlated economic
behavior of diverse asset classes. The result is a well-
diversified portfolio.
Custodial Credit Risk
Custodial credit risk for investments is the risk that, in the
event of the failure of the counterparty to a transaction,
the System will not be able to recover the value of its
investment or collateral securities that are in the
possession of another party. The Retirement System’s
investment securities are not exposed to custodial credit
risk since all securities are registered in the System’s
name and held by the System’s custodial bank.
Custodial credit risk for deposits is the risk that, in the
event of the failure of the depository financial institution,
the System will not be able to recover its deposits or will
not be able to recover collateral securities that are in the
possession of an outside party. Any cash associated with
the System’s investment portfolios not invested at the end
of a day is temporarily swept overnight to the Northern
Trust Collective Short-Term Investment Fund.
City of Fresno Fire and Police Retirement System l FINANCIAL
Notes to the Basic Financial Statements Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 44
That portion of the System’s cash held by the City in a
Trust account as part of the City’s cash investment pool
totaled $314,526 and $309,241 at June 30, 2024 and
2023, respectively. Accordingly, the System’s
investments in the pool are held in the name of the City
and are not specifically identifiable.
Disclosure of the legal and contractual provisions of the
City’s investment policy and carrying amounts by type of
investments may be found in the notes to the City’s
separate Annual Comprehensive Financial Report for the
fiscal year ended June 30, 2024.
Credit and Interest Rate Risk
Credit risk associated with the System’s debt securities is
identified by their ratings in the table below. Interest rate
risk is the risk that changes in market interest rates will
adversely affect the fair value of an investment. The
System has no general policy on credit and interest rate
risk. The System limits its investments in below
investment grade bonds and monitors the interest rate risk
inherent in its portfolio by measuring the duration of its
portfolio. The average duration of the System’s debt
portfolios in years is also listed in the following table:
2024 2023
Type of Investment Fair Value
Credit
Quality Duration Fair Value
Credit
Quality Duration
Asset Backed Securities $ 29,513,992 AA+0.78 $ 32,578,043 AA+0.65
Commercial Mortgage-Backed 16,240,150 AAA 4.40 12,548,700 AAA 5.39
Corporate Bonds 80,826,688 BBB+5.04 82,161,645 BBB 4.89
Fixed Income Derivatives - Futures 27,071,469 —7.28 10,990,567 —7.82
Non-Government Backed CMOs 1,568,874 AA 2.04 2,687,011 BBB+1.45
Preferred Stock 1,008,166 BB+— 980,743 BB+—
Government Agencies 3,969,796 BB-6.32 3,860,008 BB+6.44
Government Bonds 20,656,034 AAA 12.75 15,920,835 AAA 10.20
Gov't Issued Commercial Mortgage-Backed Securities 343,313 AAA 3.96 660,572 AAA 3.60
Government Mortgage-Backed Securities 88,602,048 AAA 7.25 82,913,339 AAA 7.48
Municipal/Provincial Bonds 1,911,486 A+8.10 2,660,586 AA-8.66
Index Linked Government Bonds 674,428 AAA 14.62 — ——
Total Credit Risk Fixed Income $ 272,386,444 $ 247,962,049
City of Fresno Fire and Police Retirement System l FINANCIAL
Notes to the Basic Financial Statements Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 45
Per Section 3.5.f.i. of the System’s Investment Policy
Statement, no more than 15 percent of an investment
manager’s fixed income portfolio may be invested in
below investment grade rated securities (BB or B rated
bonds). Therefore, at least 85 percent of the manager’s
fixed income portfolio must be invested in investment
grade securities. Intermediate Bond portfolios shall
maintain an average credit quality of A+ or better.
High yield fixed income portfolios, in accordance with
Section 3.5.f.ii. of the System’s Investment Policy
Statement, shall maintain an average credit quality rating
equal to or higher than that of the Barclays US Corporate
High Yield Index. Based on the Barclays US Corporate
High Yield Index, a high yield manager’s portfolio shall
have a constraint of the benchmark weight plus five
percent (5%) in bonds rated Caa1/CCC+ or lower with
non-rated bonds being limited to five percent (5%) of the
portfolio with both limits subject to maintaining the
average portfolio credit quality requirement of the
Barclays US Corporate High Yield index. No more than
25 percent of a high yield manager’s portfolio may be
invested in foreign securities; within this limit, a manager
may allocate up to 20 percent in emerging market
government securities including both non-U.S. dollar
denominated securities and U.S. dollar denominated
Yankee securities and up to 15 percent of the portfolio
may be invested in non-U.S. dollar denominated
securities.
High yield bond portfolios may hold up to the benchmark
weight plus five percent (5%) of assets in Rule 144A
bond issues with or without registration rights. No more
than 10 percent of the high yield manager’s portfolio may
be invested in convertibles or preferreds, and no more
than 20 percent may be invested in securitized bank debt.
No single security and/or issuer can represent more than
five percent (5%) of the fair value of a portfolio at the
time of purchase, and no single industry can represent
more than 25 percent of the fair value of the account at
the time of purchase.
Firms that manage fixed income portfolios will
continually monitor the risk associated with their fixed
income investments. They will be expected to report, as a
component of their quarterly report, a risk/reward analysis
of the management decisions relative to their benchmarks.
Statistics that relate performance variance to effective
duration decisions will be included in each quarterly
report.
Concentration Risk
The investment portfolio as of June 30, 2024 and 2023,
contained no concentration of investments in any one
entity (other than those issued or guaranteed by the U.S.
Government) that represented five percent (5%) or more
of the total investment portfolio or fiduciary net position.
Foreign Currency Risk
Foreign Currency Risk is the risk that changes in foreign
exchange rates will adversely affect the fair value of an
investment or deposit. The System has no general
investment policy with respect to foreign currency risk.
The System’s investment policy guidelines allow
international developed and emerging equity managers to
hedge their currency risks in foreign countries through the
purchase of derivatives. Used as a defensive measure and
in an effort to control the risks associated with
international portfolios, international equity investment
managers are permitted to invest in forward currency
contracts, swaps, currency futures, and exchanged-traded
index futures that represent broad equity exposure to
countries represented in their respective benchmark index.
The positions shown on the following page represent the
System’s exposure to foreign currency risk as of June 30,
2024 and 2023.
City of Fresno Fire and Police Retirement System l FINANCIAL
Notes to the Basic Financial Statements Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 46
Foreign Currency Risk Exposure
As of June 30, 2024
Base Currency Country
Equities /
Fixed Income
Futures -
Domestic
Fixed
Income
Options &
Swaps
Cash & Cash
Equivalents Total
AUD Australian Dollar Australia $ 1,535,344 $ — $ — $ — $ 1,535,344
BRL Brazilian Real Brazil 1,448,835 — 978 3,000 1,452,813
CAD Canadian Dollar Canada 16,040,921 — — — 16,040,921
CHF Swiss Franc Switzerland 5,708,247 — — — 5,708,247
CNY Chinese Yuan Renminbi China 1,709,053 — — — 1,709,053
DKK Danish Krone Denmark 8,690,673 — — — 8,690,673
EUR Euro Europe 64,189,514 — — (103,180) 64,086,334
GBP British Pound Sterling United Kingdom 35,222,503 — — — 35,222,503
HKD Hong Kong Dollar Hong Kong 14,770,235 — — — 14,770,235
IDR Indonesian Rupiah Indonesia 1,721,102 — — — 1,721,102
ILS New Israeli Shekel Israel 517,731 — — — 517,731
INR Indian Rupee India 7,199,478 — — 1,025 7,200,503
JPY Japanese Yen Japan 36,999,213 — — — 36,999,213
KRW South Korean Won South Korea 9,203,999 — — — 9,203,999
MXN Mexican Peso Mexico 1,678,269 — — 27,678 1,705,947
MYR Malaysian Ringgit Malaysia 138,335 — — — 138,335
NOK Norwegian Krone Norway 287,845 — — — 287,845
RUB Russian Ruble Russia 873,095 — — 71,071 944,166
SEK Swedish Krona Sweden 10,388,497 — — — 10,388,497
SGD Singapore Dollar Singapore 927,418 — — — 927,418
TRY Turkish Lira Turkey 3 — — — 3
TWD New Taiwan Dollar Taiwan 13,929,070 — — — 13,929,070
USD United States Dollar United States 1,038,025,609 — (127,267) 30,314,097 1,068,212,439
ZAR South African Rand South Africa 1,241,886 — — — 1,241,886
Total Equities (In USD) 1,272,446,875 — (126,289) 30,313,691 1,302,634,277
Total Non-USD Equities (In USD)$ 234,421,266 $ — $ 978 $ (406) $ 234,421,838
City of Fresno Fire and Police Retirement System l FINANCIAL
Notes to the Basic Financial Statements Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 47
Foreign Currency Risk Exposure
As of June 30, 2023
Base Currency Country
Equities /
Fixed Income
Futures -
Domestic
Fixed
Income
Options &
Swaps
Cash & Cash
Equivalents Total
AUD Australian Dollar Australia $ 2,027,388 $ — $ — $ 7,339 $ 2,034,727
BRL Brazilian Real Brazil 2,621,885 — — 1,532 2,623,417
CAD Canadian Dollar Canada 15,394,405 — — — 15,394,405
CHF Swiss Franc Switzerland 12,512,317 — — — 12,512,317
CNY Chinese Yuan Renminbi China 1,378,692 — — 6,331 1,385,023
DKK Danish Krone Denmark 9,212,479 — — — 9,212,479
EUR Euro Europe 73,329,829 — — (114,692) 73,215,137
GBP British Pound Sterling United Kingdom 32,960,669 — — — 32,960,669
HKD Hong Kong Dollar Hong Kong 12,272,937 — — 256,397 12,529,334
IDR Indonesian Rupiah Indonesia 2,399,295 — — — 2,399,295
ILS New Israeli Shekel Israel 1,301,833 — — — 1,301,833
INR Indian Rupee India 7,775,807 — — 20,217 7,796,024
JPY Japanese Yen Japan 49,191,168 — — — 49,191,168
KRW South Korean Won South Korea 8,988,184 — — — 8,988,184
MXN Mexican Peso Mexico 1,874,155 — — — 1,874,155
NOK Norwegian Krone Norway 747,544 — — — 747,544
PLN Polish Zloty Poland 833,310 — — — 833,310
RUB Russian Ruble Russia 1,365,167 — — 8,582 1,373,749
SEK Swedish Krona Sweden 12,376,729 — — — 12,376,729
SGD Singapore Dollar Singapore 1,186,602 — — (43) 1,186,559
THB Thai Baht Thailand 341,726 — — — 341,726
TRY Turkish Lira Turkey 1 — — — 1
TWD New Taiwan Dollar Taiwan 11,540,489 — — — 11,540,489
USD United States Dollar United States 991,300,668 — (140,807) 12,835,654 1,003,995,515
ZAR South African Rand South Africa 1,512,671 — — — 1,512,671
Total Equities (In USD) 1,254,445,950 — (140,807) 13,021,317 1,267,326,460
Total Non-USD Equities (In USD)$ 263,145,282 $ — $ — $ 185,663 $ 263,330,945
City of Fresno Fire and Police Retirement System l FINANCIAL
Notes to the Basic Financial Statements Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 48
Per Section 3.5.e. of the System’s Investment Objectives
and Policy Statement, assets in international equity
portfolios shall consist of liquid, publicly traded equity
and equity like securities traded on major stock exchanges
as well as cash and cash equivalents as necessary.
Securities will be primarily composed of foreign ordinary
shares and depository receipts (American Depository
Receipts (ADRs) and Global Depository Receipts (GDRs)
including ADRs and GDRs that are 144A securities).
Securities that are 144A securities, including ADR and
GDR 144A securities, are authorized investments which
in aggregate cannot exceed 10 percent of the portfolio.
Primarily large capitalization securities may be held,
although investments in small and mid capitalization
securities are also allowed. Firms will continually
monitor their country, currency, sector and security
selection risks associated with their international
portfolios. All of the risks will be included in the
manager’s quarterly reports and performance attribution
based on these factors will also be included.
The System’s complete Investment Objectives and Policy
Statement can be found on the System’s website at
www.CFRS-CA.org or by contacting the Retirement
Office at 2828 Fresno Street, Suite 201, Fresno, CA
93721.
Rate of Return
For the fiscal years ended June 30, 2024 and 2023, the
annual money-weighted rate of return on the assets of the
System, net of investment expense, was 10.38 percent and
9.52 percent, respectively. The money-weighted rate of
return expresses investment performance, net of
investment expense, adjusted for timing of cash flows and
the changing amounts actually invested.
8 Derivatives
The Retirement Board has authorized certain investment
managers to invest in or otherwise enter into transactions
involving derivative financial instruments when, in the
judgment of management, such transactions are consistent
with the investment objectives established for a specific
investment manager’s assignment. The acceptable
investment purposes for the use of derivatives are as
follows:
a. Mitigation of risk (or risk reduction).
b. A useful substitute for an existing, traditional
investment. In certain circumstances it may be cheaper,
quicker or easier to invest in a derivative instrument or
security rather than transacting in cash or in the traditional
security market.
c. To provide investment value to the portfolio
while being consistent with the System’s overall and
specific investment policies.
d. To obtain investment exposure which is
appropriate for the manager’s investment strategy and the
System’s investment guidelines, but could not be made
through traditional investment securities.
The Retirement Board monitors and reviews each
investment manager’s securities and derivative position as
well as the manager’s performance relative to established
benchmark rates of return and risk measures. In
management’s opinion, derivative activities must be
evaluated within the context of the overall portfolio
performance and cannot be evaluated in isolation.
City of Fresno Fire and Police Retirement System l FINANCIAL
Notes to the Basic Financial Statements Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 49
Allowable derivative financial instruments held by the
System include stable and well-structured collateralized
mortgage obligations (CMOs); centrally cleared
instruments including, but not limited to, futures, swaps
and options; and forwards including currency forwards.
Derivative investments with allocation limits include
mortgage derivatives (interest only and principal only
CMOs); non-centrally cleared derivatives; caps and
floors; and inverse floating rate notes and bonds.
Allocation limits will be determined and specified in
portfolio guidelines with individual investment managers
based on the objectives and risk tolerances of a given
strategy.
Cash securities containing derivative features include
callable bonds, structural notes, and collateralized
mortgage obligations (CMOs). These instruments are
generally traded in over-the-counter bond markets.
Financial instruments whose value is dependent upon a
contractual price or rate relative to one or more reference
prices or rates, applied to a notional amount, including
interest rate futures, options, swaps and caps, and foreign
currency futures and forward contracts. Some of these
instruments are exchange-traded and others are traded
over-the-counter (OTC).
Market Risk
Market risk is the risk of change in fair value of an
instrument in response to changes in a market price or
index. While all investments are subject to market risk,
derivatives often have a higher degree of market risk than
other types of investment instruments. Values of cash
securities containing derivative features are often more
susceptible to market risk than other types of fixed
income securities because the amounts and/or timing of
their scheduled cash flows may fluctuate under changing
market conditions, according to their contractual terms.
For other types of derivatives, amounts of contractual
cash flows may be either positive or negative depending
upon prevailing market conditions relative to the
reference prices or rates, and thus the values of such
instruments may be positive or negative, despite the fact
that little or no cash is initially exchanged to enter into
such contracts.
Credit Risk
Credit risk of cash securities containing derivative
features is based upon the credit worthiness of the issuers
of such securities. The Retirement Board establishes
minimum credit requirements for such securities. The
other derivative instruments described above are subject
to credit risk to the extent their value is a positive fair
value, and the counterparty to such contract fails to
perform under the terms of the instrument.
Exchange traded derivatives are generally considered to
be of lower credit risk than OTC derivatives due to the
exchange margin requirements. Equity Index Swaps are
derivatives and represent an agreement between two
parties to swap two sets of equity values. Equity Futures
are contracts used to replicate an underlying stock or
stock market index. These futures can be used for
hedging against an existing equity position, or for
speculating on future movement of the index.
City of Fresno Fire and Police Retirement System l FINANCIAL
Notes to the Basic Financial Statements Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 50
As of June 30, 2024 and 2023, the System held a total fair
value of $30,061,243 and $14,298,596, respectively, in
derivative holdings. These holdings consisted of Rights/
Warrants, and Foreign Currency Forwards and Futures
designed to synthetically create equity returns and are
held as components of the System’s international equity
investments, and a variety of ACWIexUS index related
futures as components of the System’s investments in
ACWIexUS Index Funds. Holdings also consist of
futures – interest rate contracts, options and swaps held as
components of the System’s absolute return fixed income
strategy. These derivatives are used for the purpose of
synthetically creating equity returns, synthetically
creating floating rates and to buy or sell credit protection
on the assets.
There is no net counterparty exposure for which there is a
positive replacement cost to the fund. The details of these
derivative holdings are as follows:
Derivative Type:FY 2024 FY 2023 FY 2024 - FY 2023
Notional Change in Fair
Amount Fair Value Fair Value Value
Foreign Currency Forward $(339,260)$340,762 $816,502 $ (475,740)
Future Contracts - Domestic Fixed Income (27,071,469)27,071,469 10,990,566 16,080,903
Future Contracts - International Equity Index —2,774,156 2,630,972 143,184
Rights & Warrants —2,126 1,367 759
Swaps —(127,270)(140,811) 13,541
Total $30,061,243 $14,298,596
Derivative Type:FY 2023 FY 2022 FY 2023 - FY 2022
Notional Change in Fair
Amount Fair Value Fair Value Value
Foreign Currency Forward $(818,116)$816,502 $40,827 $ 775,675
Future Contracts - Domestic Fixed Income (10,990,566)10,990,566 21,072,961 (10,082,395)
Future Contracts - International Equity Index —2,630,972 2,427,318 203,654
Rights & Warrants —1,367 3,195 (1,828)
Swaps —(140,811)— (140,811)
Total $14,298,596 $23,544,301
City of Fresno Fire and Police Retirement System l FINANCIAL
Notes to the Basic Financial Statements Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 51
9 Securities Lending
The City of Fresno Municipal Code and the Board’s
policies permit the Retirement Boards of the City of
Fresno Fire and Police Retirement System and the City of
Fresno Employees Retirement System (the Systems) to
use investments of both Systems to enter into securities
lending transactions, i.e., loans of securities to broker-
dealers and other entities for collateral with a
simultaneous agreement to return the collateral for the
same securities in the future. The Systems have
contracted with Northern Trust, their custodian, to
manage the securities lending program for the Systems
and all securities held in a separately managed account are
available for lending. As the securities lending agent,
Northern Trust calculates collateral margins and accepts
collateral in the form of cash or marketable securities and
irrevocable bank letters of credit for all securities lending
transactions. Transactions are collateralized at 102
percent of fair value (contract value) for domestic
securities and 105 percent of fair value (contract value)
for international securities. Collateral is marked to market
daily. When a loan is secured by cash, a rebate is
negotiated and the cash collateral is invested according to
the guidelines in the collateral pool.
As designated by the Board, cash collateral is invested in
Northern Trust’s Core U.S.A. Collateral Section (short-
term investment pool), which, as of June 30, 2024 and
2023, had a weighted average duration of 69 days and 71
days, respectively, an average maturity of 22 days and 13
days, respectively, and an average monthly yield of 5.51
percent and 5.29 percent, respectively. The relationship
between the maturities of the investment pool and the
System’s loans is affected by the maturities of the security
loans made by other entities that use the Northern Trust
Core U.S.A. Collateral Section and a definitive statement
of that relationship cannot be formulated by the System.
As of June 30, 2024 and 2023, the Northern Trust CORE
U.S.A. Cash Collateral Fund had zero exposure in below
investment grade long-term securities and there were no
known credit risks related to the securities lending
transactions.
As of June 30, 2024, the fair value of the securities on
loan was $32.8 million. The fair value of associated
collateral was $33.9 million ($30 million of cash
collateral and $3.9 million of non-cash collateral). Non-
cash collateral, the collateral which the System does not
have the ability to sell unless the borrower defaults, is not
reported in the Statement of Fiduciary Net Position. As of
June 30, 2023, the fair value of the securities on loan was
$32.6 million. The fair value of associated collateral was
$33.5 million ($27.1 million of cash collateral and $6.4
million of non-cash collateral). Non-cash collateral, the
collateral which the System does not have the ability to
sell unless the borrower defaults, is not reported in the
Statement of Fiduciary Net Position.
Northern Trust will ensure that, in any agreement with a
borrower, it retains its absolute right to terminate the
agreement without cause, upon short notice and without
any penalty. The System cannot pledge or sell collateral
securities received unless the borrower defaults. In the
event of a borrower default, Northern Trust indemnifies
the System against losses and will replace or reimburse
the System for any borrowed securities not replaced. In
general, the average term of all System loans is overnight
or “on demand." All securities loans can be terminated on
demand by either the lender or the borrower, although the
average term of the System’s loans was approximately 81
days and 81 days, respectively, as of June 30, 2024 and
2023.
City of Fresno Fire and Police Retirement System l FINANCIAL
Notes to the Basic Financial Statements Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 52
The System’s securities lending income is as follows:
Securities Lending Income
For Fiscal Years Ended June 30, 2024 and 2023
2024 2023
Gross Income $1,849,354 $2,299,318
Expenses:
Bank Fees 1,650,262 1,937,546
Total Expenses 1,650,262 1,937,546
Net Income from Securities Lending $199,092 $361,772
Fair Value of Loaned Securities
As of June 30, 2024 and 2023
FY 2024 FY 2023
Collateralized by Cash Securities Total Cash Securities Total
U.S. Government & Agency $ 9,458,631 $ 977,149 $ 10,435,780 $ 11,320,990 $ 994,048 $ 12,315,038
Domestic Equities 4,161,813 15,197 4,177,010 3,788,280 902,365 4,690,645
Domestic Fixed 11,799,835 970,333 12,770,168 8,416,483 377,983 8,794,466
International Equities 3,710,036 1,705,767 5,415,803 2,946,231 3,533,757 6,479,988
International Fixed — — — — 311,340 311,340
Total Value $ 29,130,315 $ 3,668,446 $ 32,798,761 $ 26,471,984 $ 6,119,493 $ 32,591,477
Fair Value of Collateral Received for Loaned Securities
As of June 30, 2024 and 2023
FY 2024 FY 2023
Collateralized by Cash Securities Total Cash Securities Total
U.S. Government & Agency $ 9,728,209 $ 1,007,695 $ 10,735,904 $ 11,522,742 $ 1,007,862 $ 12,530,604
Domestic Equities 4,261,145 15,516 4,276,661 3,867,660 916,833 4,784,493
Domestic Fixed 12,127,858 990,543 13,118,401 8,555,797 384,000 8,939,797
International Equities 3,931,323 1,807,504 5,738,827 3,120,857 3,755,357 6,876,214
International Fixed — — — — 336,013 336,013
Total Value $ 30,048,535 $ 3,821,258 $ 33,869,793 $ 27,067,056 $ 6,400,065 $ 33,467,121
City of Fresno Fire and Police Retirement System l FINANCIAL
Notes to the Basic Financial Statements Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 53
10 Administrative Expenses
Section 3-325 of the City of Fresno Municipal Code
provides that all administrative costs of the System shall
be a charge against the assets of the System. Per the City
of Fresno Municipal Code, the administrative expenses
are a component of the City’s contribution calculation.
11 Post Retirement Supplemental
Benefit (PRSB)
The Post Retirement Supplemental Benefit (PRSB)
Program was created as a contingent program to provide
supplemental distributions to eligible retirees which they
could use to pay for various post-retirement expenses.
The Retirement Board will annually review the actuarial
valuation report and declare an actuarial surplus if
available in accordance with the procedures in the City of
Fresno Municipal Code Section 3-354.
If an actuarial surplus is declared, the surplus is allocated
into two components, one component composed of two-
thirds of the declared surplus shall be used to reduce or
eliminate the City’s pension contributions. Any unused
portion shall be reserved in the City Surplus Reserve and
drawn upon in subsequent years if needed. The remaining
one-third component shall be distributed among eligible
post-retirement supplemental benefit recipients in
accordance with procedures in the City of Fresno
Municipal Code Section 3-354(f)(4). Any unused portion
shall be reserved in the PRSB Reserve and drawn upon in
subsequent years if needed.
For the fiscal year ended June 30, 2024, the System
distributed PRSB benefits in the total amount of
$2,717,401 to eligible recipients (including $2,514,579 to
retirees and $202,822 to DROP participants). As of June
30, 2024, the City Surplus Reserve balance was $-611,272
and the PRSB Reserve balance was $2,158,561. As of
June, 30, 2023, the City Surplus Reserve balance was
$-125,007 and the PRSB Reserve balance was
$2,672,063.
For the fiscal years ended June 30, 2024 and 2023, there
was a surplus (or prefunded actuarial accrued liability) as
the System has a valuation value of assets which is in
excess of the actuarial accrued liability. The System’s
funded ratio was 114.9 percent and 116.7 percent,
respectively, which was above the required 110 percent
for declaration of a surplus, thus a 4.9 percent and 6.7
percent actuarial surplus was available to reduce the
City’s contributions and to fund new PRSB benefits for
the years ended June 30, 2024 and 2023, respectively.
The June 30, 2024 PRSB portion of the surplus is
$1,568,567, of which 80 percent will be allocated in the
2025 calendar year to retirees at $135.4 per month
commencing January 1, 2025. For June 30, 2023 the
PRSB portion of the surplus was $1,993,669, of which 80
percent was allocated in the 2024 calendar year to retirees
at $166.87 per month commencing January 1, 2024.
12 Capital Assets
Capital assets are carried at historical cost, net of
accumulated depreciation. Capital assets are any items of
equipment or furnishings purchased with a value of or an
initial cost of $500 or greater and $5,000 for land,
buildings and infrastructure and an estimated useful life in
excess of two years.
Accumulated depreciation shall be summarized and
reflected on the System’s annual financial statements.
Capital assets shall be depreciated over their estimated
useful lives using the straight-line depreciation method.
Intangible assets with limited useful lives (e.g., by legal or
contractual provisions) should be depreciated over their
estimated useful lives. Depreciation of computer software
begins when the program is placed into service.
City of Fresno Fire and Police Retirement System l FINANCIAL
Notes to the Basic Financial Statements Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 54
The System’s major two-year project to program and
install an upgrade to our original pension administration
system that was installed in 1997 (the LRS Pension Gold
Retirement Solutions’ Version 3 project) includes
software costs of $132,959 and $265,919 which are
capitalized as of June 30, 2024 and 2023, respectively,
and will be depreciated over a ten-year useful life period
commencing July 1, 2015.
As of June 30, 2024, other capital assets consisting of
office furniture and equipment for the System’s
Retirement Offices located at 2828 Fresno Street, Fresno,
California, in the amount of $79,001 are capitalized and
depreciated over remaining estimated useful lives of 2-15
years.
As of June 30, 2023, capital assets consisting of office
furniture and equipment for the System’s Retirement
Offices in the amount of $81,102 were capitalized and
depreciated over remaining estimated useful lives of 2-15
years.
13 Leases
Under the lease agreement with CFRS Realty Holding
Corporation (the Corporation), the holding corporation
formed jointly by the Retirement Boards to take
ownership of the building, effective September 19, 2005,
the City of Fresno Employees and City of Fresno Fire and
Police Retirement Boards and their staff occupy
approximately 7,900 square feet of the second floor of the
renovated building at 2828 Fresno Street, Fresno,
California. The term of the lease is ten years with an
option for two additional five-year extensions. The first
five (5) year extension was exercised effective September
1, 2015. On March 1, 2020, the Corporation amended the
lease with the Retirement Boards. The amended lease
agreement establishes the Retirement Boards as the sole
tenant of the second floor, a total of 11,784 rentable
square feet, consisting of 10,426 net square feet in the
premises and 1,358 square feet in common area. The
amendment also exercises the second five (5) year lease
extension. As of June 30, 2024, the Systems share
equally a base rent of $20,400 per month, which is $1.73
per square foot per month, triple net. For the fiscal year
ended June 30, 2023, the Systems equally shared a base
rent of $20,000 per month, which is $1.70 per square foot
per month, triple net.
14 Related Party Transactions
The Retirement System is involved in various business
transactions with the City of Fresno, the primary plan
sponsor. These include reimbursement to the City for the
salary and benefits of the System’s Retirement Staff
members paid through the City, reimbursement to the City
Personnel Department for personnel consulting services,
and reimbursement to the City Information Services
Department for computer and telephone support.
The Retirement Systems lease office space from the
CFRS Realty Holding Corporation, a title holding
company controlled jointly by the City of Fresno
Employees and City of Fresno Fire and Police Retirement
Systems. See Note 13 for a description of this
arrangement.
City of Fresno Fire and Police Retirement System l FINANCIAL
Notes to the Basic Financial Statements Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 55
15 Commitments and Contingencies
The Board, in accordance with its Asset Allocation Plan, has committed capital for investment in Private Debt/Private Credit,
Private Real Estate and Infrastructure Funds. The following table details the outstanding capital commitments in these
investments as of June 30, 2024 and 2023.
Unfunded Commitments
Investment Type FY 2024 FY 2023 Investment Type FY 2024 FY 2023
Private Real Estate Funds Private Debt/Private Credit
Alidade Capital $ 8,687,542 $ 9,737,340 Arcmont $ 26,851,225 $ 37,876,152
Artemis 13,419,834 16,819,386 Cloverlay 11,482,483 16,172,179
Blue Vista — 877,973 Crescent Capital 23,442,782 21,619,206
Brookfield 5,458,287 6,768,007 Monroe Capital 21,608,691 23,454,191
The Carlyle Group 13,711,655 — PIMCO COF 27,962,457 27,976,064
Grain Communications 9,987,569 — Sixth Street 30,654,236 39,665,814
Kayne Anderson 9,264,358 17,980,004 Total $ 142,001,874 $ 166,763,606
Oaktree Capital Mgt. 2,394,055 2,395,220
PCCP, LLC 12,642,024 3,703,366 Private Equity
PIMCO BRAVO III 2,362,616 12,648,176 Ocean Ave $ 8,007,607 $ 9,877,196
Tristan Capital Partners — — Pantheon 110,250,426 59,083,883
$ 77,927,940 $ 70,929,472
Volta Energy
Technologies 7,678,527 —
Total $ 125,936,560 $ 68,961,079
FY 2024 FY 2023
Total Unfunded Commitments $ 345,866,374 $ 306,654,157
16 Date of Management Review
The date to which events occurring after June 30, 2024, have been evaluated for possible adjustments to the financial
statements or disclosures is December 4, 2024, which is the date the financial statements were available to be issued.
Management identified the following subsequent financial events that require disclosure:
The System is engaged in litigation with the City of Fresno regarding the City’s refusal to fully pay the actuarially determined
employer contributions for fiscal year 2025. The Retirement Systems Boards, legal counsel and actuaries believe the legal
standing and fiduciary position are sound; however, any long-term potential financial impact is not presently determinable
and is not reflected in these statements.
City of Fresno Fire and Police Retirement System l FINANCIAL
Notes to the Basic Financial Statements Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 56
Required Supplementary Information
Schedule of Changes in the Net Pension Liability
(Dollars in Thousands)
For Fiscal Years Ended June 30, 2015-2024
GASB 67 Basis*
Financial Reporting
Change in Net Pension Liability 2024 2023 2022 2021 2020
Total Pension Liability
Service cost $45,611 $41,190 $38,322 $37,563 $37,619
Interest 125,971 117,305 114,608 109,739 105,570
Change of benefit terms —————
Differences between expected and actual experience 48,898 51,061 22,225 (5,449)260
Changes of assumptions ——624 0 (14,745)
Benefit Payments (including refunds, excluding PRSB)(90,219)(80,937)(75,178)(70,963)(67,202)
Net Change in Total Pension Liability $130,261 $128,619 $100,601 $70,890 $61,502
Total Pension Liability - Beginning $1,865,741 $1,737,122 $1,636,521 $1,565,631 $1,504,129
Total Pension Liability - Ending (a)*$1,996,002 $1,865,741 $1,737,122 $1,636,521 $1,565,631
Plan Fiduciary Net Position
Employee Contributions $13,108 $12,054 $10,973 $10,256 $10,012
Employer Contributions 30,635 27,068 27,555 26,315 22,324
Net Investment Income (Loss)206,468 198,976 (160,517)491,744 24,205
Actual Benefit Payments (including Refunds, PRSB)(90,219)(80,937)(75,178)(70,963)(67,202)
Administrative & Professional Expense (2,458)(2,401)(2,126)(2,282)(1,839)
Net Change in Plan Fiduciary Net Position $157,534 $154,760 $(199,293)$455,070 $(12,500)
Plan Fiduciary Net Position - Beginning $2,045,837 $1,891,077 $2,090,370 $1,635,300 $1,647,800
Plan Fiduciary Net Position - Ending (b)$2,203,371 $2,045,837 $1,891,077 $2,090,370 $1,635,300
System Net Pension Liability (Surplus) - (a) - (b)$(207,369)$(180,096)$(153,955)$(453,849)$(69,669)
Plan fiduciary net position as a percentage of
total pension liability 110.39%109.65%108.86%127.73%104.45%
Covered Payroll**145,669 $134,252 $122,634 $115,341 $113,843
Net Pension Liability (Surplus) as a percentage of covered payroll (142.36)%(134.15)%(125.54)%(393.48)%(61.20)%
* In accordance with provisions of GASB 67, the data on the next two pages show Total Pension Liability for the reporting periods from June 30, 2015 through June
30, 2024.
** Covered payroll represents pensionable compensation. Only pensionable compensation that would possibly go into the determination of retirement benefits is
included.
Note to Schedule:
Changes of Assumptions: The calculations above reflect various assumption changes, including the modification of the Board's assumed rate of return to 6.75 percent
for use in preparing the June 30, 2024, 2023, and 2022 annual actuarial valuation and other assumption changes based on the triennial experience study for the period
from July 1, 2018 through June 30, 2021. Assumption changes prior to June 30, 2022, are also reflected including the modification of the Board's assumed rate of
return to 7.00 percent for use in preparing the June 30, 2019, 2020 and 2021 annual actuarial valuations and other assumption changes based on the triennial experience
study for the period from July 1, 2015 through June 30, 2018. The calculations above also reflect the assumed rate of return of 7.25 percent for use in preparing the
June 30, 2016, 2017 and 2018 annual actuarial valuations and other assumption changes based on the triennial experience study for the period from July 1, 2012 through
June 30, 2015 and 7.50 percent for use in preparing the June 30, 2013, 2014 and 2015 annual actuarial valuations and other assumption changes based on the triennial
experience study for the period from July 1, 2009 through June 30, 2012 which included changes in assumptions for retirement from active employment, pre-retirement
mortality, healthy life post-retirement mortality, disabled life post-retirement mortality, vested termination, disability DROP election, percentage of members married,
spouse age difference and salary increases.
City of Fresno Fire and Police Retirement System l FINANCIAL
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 57
Schedule of Changes in the Net Pension Liability Continued
(Dollars in Thousands)
For Fiscal Years Ended June 30, 2015-2024
GASB 67 Basis*
Financial Reporting
Change in Net Pension Liability 2019 2018 2017 2016 2015
Total Pension Liability
Service cost $33,211 $30,298 $28,838 $26,569 $26,518
Interest 100,609 95,274 90,184 88,363 86,772
Change of benefit terms —————
Differences between expected and actual experience (7,067)6,723 10,896 (42,953)(36,529)
Changes of assumptions 55,856 2,891 —49,427 0
Benefit Payments (including refunds, excluding PRSB)(65,962)(63,071)(59,272)(56,581)(54,612)
Net Change in Total Pension Liability $116,647 $72,115 $70,646 $64,825 $22,149
Total Pension Liability - Beginning $1,387,482 $1,315,367 $1,244,721 $1,179,896 $1,157,747
Total Pension Liability - Ending (a)*$1,504,129 $1,387,482 $1,315,367 $1,244,721 $1,179,896
Plan Fiduciary Net Position
Employee Contributions $9,597 $8,964 $8,169 $7,748 $7,385
Employer Contributions 20,604 19,697 18,543 18,738 18,967
Net Investment Income (Loss)82,872 129,163 192,315 6,063 39,164
Actual Benefit Payments (including Refunds, PRSB)(65,962)(63,071)(59,273)(56,581)(54,612)
Administrative & Professional Expense (1,897)(1,710)(1,500)(1,397)(1,108)
Net Change in Plan Fiduciary Net Position $45,214 $93,043 $158,254 $(25,429)$9,796
Plan Fiduciary Net Position - Beginning $1,602,586 $1,509,543 $1,351,289 $1,376,718 $1,366,922
Plan Fiduciary Net Position - Ending (b)$1,647,800 $1,602,586 $1,509,543 $1,351,289 $1,376,718
System Net Pension Liability (Surplus) - (a) - (b)$(143,671)$(215,104)$(194,176)$(106,568)$(196,822)
Plan fiduciary net position as a percentage of
total pension liability 109.55%115.50%114.76%108.56%116.68%
Covered Payroll**$109,803 $103,934 $97,369 $94,266 $91,075
Net Pension Liability (Surplus) as a percentage of covered payroll (130.84)%(206.96)%(199.42)%(113.05)%(216.11)%
City of Fresno Fire and Police Retirement System l FINANCIAL
Required Supplementary Information Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 58
Schedule of Employer Contributions
Last Ten Fiscal Years
(Dollars in Thousands)
Fiscal Year
Ended June 30
Actuarially
Determined
Contribution (ADC)
Contributions in
Relation to the
ADC
Contribution
Deficiency
(Excess)Covered Payroll
Contributions as a
Percentage
of Covered Payroll
2024 $30,635 $30,635 $—$145,669 21.03%
2023 27,068 27,068 —134,252 20.16%
2022 27,556 27,556 —122,634 22.47%
2021 26,315 26,315 —115,341 22.81%
2020 22,324 22,324 —113,843 19.61%
2019 20,604 20,604 —109,803 18.76%
2018 19,697 19,697 —103,934 18.95%
2017 18,543 18,543 —97,369 19.04%
2016 18,738 18,738 —94,266 19.88%
2015 18,967 18,967 —91,075 20.83%
Schedule of Investment Returns
Last Ten Fiscal Years
Fiscal Year Annual Money-Weighted Rate of Return Annual Money-Weighted Rate of Return
Ending June 30 Gross of Investment Expenses Net of Investment Expense
2024 10.56%10.38%
2023 9.74%9.52%
2022 (7.12%)(7.28%)
2021 30.85%30.43%
2020 1.61%1.26%
2019 5.54%5.20%
2018 8.93%8.57%
2017 14.73%14.35%
2016 0.82%0.53%
2015 3.32%2.93%
The Schedule of Investment Returns above shows the annual money-weighted rate of return on the assets of the System, both gross and net of investment
expense for ten fiscal years (2015 – 2024). The money-weighted rate of return expresses investment performance adjusted for timing of cash flows and the
changing amounts actually invested. These returns differ slightly from the time-weighted rate of returns calculated and reported by the System’s custodian,
Northern Trust (shown in the Transmittal Letter on page i and within the Investment Section beginning on page 65) and as independently reported by the
System’s investment consulting firm, NEPC, LLC (shown in the Investment Section on pages 70-71). The System’s custodian and investment consulting
firm must use time-weighted returns as opposed to money-weighted returns in order to meet Global Investment Performance Standards for the purposes of
effectively evaluating and reporting the performance of the System's investment managers.
The time-weighted return method is a measure of the compound rate of return of a portfolio over a stated period of time. It requires a set of sub-period
returns to be calculated whenever there is an external cash flow, such as a deposit or withdrawal from the portfolio. In essence, it calculates the geometric
total and mean return as opposed to the arithmetic total and mean return. This method does not include or have any distortions created when money is
deposited or withdrawn from a portfolio. This is in contrast to money-weighted returns.
City of Fresno Fire and Police Retirement System l FINANCIAL
Required Supplementary Information Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 59
For Fiscal Years Ended June 30, 2024 and 2023
Actuarial Assumptions
The Segal Company, the System’s actuary, performed the most recent annual actuarial valuation as of June 30, 2024, which
computes the contribution requirements (employee and employer contributions rates for fiscal year 2026), and determines the
funding status of the plan. The fiscal year 2024 contribution rates and assumptions were based on the actuarial valuation as
of June 30, 2022; these assumptions are detailed below.
Valuation Date: Actuarially determined contribution rates are calculated as of June 30,
two years prior to the end of the fiscal year in which contributions are
reported.
Actuarial Cost Method: Entry Age Actuarial Cost Method
Amortization Method: Level percent of payroll.
Remaining Amortization Period: Effective with the June 30, 2013 valuation, any new UAAL established
on each subsequent valuation as a result of actuarial gains or losses or
plan amendments are amortized over separate 15-year declining periods
(with the exception of temporary retirement incentives which are
amortized over its own declining period of up to 5 years). Any new
UAAL established as a result of changes in actuarial assumptions or
methods at each valuation is amortized over separate 25-year declining
periods. Any actuarial surplus (when the funded ratio is over 110%)
will be amortized over a non-declining 30-year period.
Asset Valuation Method: Market value of assets less unrecognized returns from each of the last
five years. Unrecognized returns are equal to the difference between the
actual market return and the expected return on a market value basis
and are recognized over a five-year period. The Actuarial Value of
Assets is reduced by the value of the non-valuation reserves.
City of Fresno Fire and Police Retirement System l FINANCIAL
Notes to the Required Supplementary Information
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 60
Actuarial Assumptions Continued:
Investment Rate of Return: 6.75%
Inflation Rate: 2.50%
Real Across-the-Board Salary Increase: 0.50%
Projected Salary Increases: Ranges from 4.00 percent to 13.00 percent based on years of service.
Includes inflation at 2.50% plus real across-the-board salary increase of
0.50% plus merit and promotion increases.
Cost-of-Living Adjustments: 3.00% of Tier 1 retirement income and 2.50% of Tier 2 retirement
income.
Other Assumptions: See June 30, 2022 funding valuation report, Section 4 for the service
retirement rates after they have been adjusted to treat DROP
participation as service retirement.
Post-Retirement Mortality Rates: For healthy members, Pub-2010 Safety Healthy Retiree Amount-
Weighted Mortality Table (separate tables for males and females),
projected generationally with the two-dimensional mortality
improvement scale MP-2021. For beneficiaries, Pub-2010 General
Healthy Retiree Amount-Weighted Mortality Table (separate tables for
males and females) times 105%, projected generationally with the two-
dimensional mortality improvement scale MP-2021. For disabled
members, Pub-2010 Safety Disabled Retiree Amount-Weighted
Mortality Table (separate tables for males and females), projected
generationally with the two-dimensional mortality improvement scale
MP-2021.
City of Fresno Fire and Police Retirement System l FINANCIAL
Notes to the Required Supplementary Information Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 61
Schedule of Administrative Expenses
For Fiscal Years Ended June 30, 2024 and 2023
2024 2023
Personnel Services
Staff Salaries $ 914,456 $ 827,355
Fringe Benefits 254,160 213,559
Total Personnel Services $ 1,168,616 $ 1,040,914
Professional Services
Actuarial $ 123,808 $ 137,053
Legal Counsel 121,194 154,738
Information Systems Services 85,729 76,247
Specialized Services 132,641 248,177
Total Professional Services $ 463,372 $ 616,215
Communication
Telephone $ 5,450 $ 8,891
Postage 1,405 499
Total Communication $ 6,855 $ 9,390
Rentals
Office Rent $ 122,000 $ 119,607
Common Area Maintenance (CAM) Charges 81,948 99,303
Total Rentals $ 203,948 $ 218,910
Other
Education and Conference $ 98,853 $ 104,359
Membership & Dues 7,592 6,683
Subscriptions & Publications 831 602
Office Supplies 3,430 2,950
Computer Equipment 4,526 4,310
Equipment Lease 28,792 27,111
Insurance 78,239 76,975
Miscellaneous 9,193 9,386
Reimbursement to City for Inter-Dept Services 243,427 143,348
Depreciation 140,135 139,890
Total Other $ 615,018 $ 515,614
Total Administrative Expenses $ 2,457,809 $ 2,401,043
City of Fresno Fire and Police Retirement System l FINANCIAL
Other Supplementary Information
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 62
Schedule of Investment Management Expenses
For Fiscal Years Ended June 30, 2024 and 2023
2024 2023
Investment Manager Fees
Equity
Domestic $ 49,612 $ 42,762
International 1,426,779 1,369,906
Private Equity 2,571,834 2,204,073
Fixed Income 406,131 544,746
Private Debt/Credit 24,462,002 12,529,340
Real Assets 9,083,714 10,354,107
Multi-Assets 992,264 472,838
Total Investment Manager Fees 38,992,336 27,517,772
Other Investment Expenses
Foreign Income Taxes & Related Services, Charges 2,034,344 2,428,385
Custodial Services 167,442 189,265
Investment Consultant 184,530 158,125
Investment Legal Counsel 97,381 54,887
Analytical Database Service 111,213 92,645
Total Other Investment Expenses 2,594,910 2,923,307
Total Fees & Other Investment Expenses 41,587,246 30,441,079
Securities Lending Expenses
Agent Fees 1,650,262 1,937,546
Total Securities Lending Expenses 1,650,262 1,937,546
Total Investment Expenses $ 43,237,508 $ 32,378,625
Schedule of Payments To Consultants
For Fiscal Years Ended June 30, 2024 and 2023
2024 2023
Actuarial Services $ 123,808 $ 137,053
Audit Services 21,193 23,212
City Information Services 85,729 76,247
Legal Services 121,194 154,738
Medical Consultant 59,588 221,442
Miscellaneous 51,860 3,523
Total Payments to Consultants $ 463,372 $ 616,215
City of Fresno Fire and Police Retirement System l FINANCIAL
Other Supplementary Information Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 63
We promise to carry
out our Mission
through a competent,
professional, impartial
and open decision-
making process. In
providing benefits and
services, all persons
will be treated fairly,
with courtesy and
respect.
INVESTMENT
65 Investment Report from the Retirement Administrator
70 Investment Consultant’s Report
72 Investment Results (Gross and Net of Fees)
74 Target Asset Allocation and Actual Asset Allocation
76 Largest Stock and Bond Holdings
77 Schedule of Commissions
77 Investment Summary
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 64
Investment Report from the
Retirement Administrator
For the Years June 30, 2024 and 2023
Analysis of Our Portfolio in Fiscal Year 2024
The Board’s responsibility, as a long-term investor, is to
manage in and through the global financial market
environments as they unfold. Our Board understands the
System’s portfolio requires a sound and stable strategy for
meeting investment goals over the long-term with
appropriate risk levels and controls.
Fiscal Year 2024 saw a return of volatility in the markets
mainly due to the anticipation of global Central Banks
cutting interest rates. By most measures, inflation has
been contained, though not subdued, leading to
speculation of a ‘soft landing’ scenario. While the yield
curve continued to remain inverted, there is little
expectation for a recession or prolonged slowdown in
growth which resulted in higher valuations for public
equities. Private market strategies continue to be
challenged due to the lack of distributions and liquidity
constraints some investors are experiencing. Some
pockets, such as private debt, have seen an explosion in
growth and popularity due to the current macro
environments globally. The United States Dollar
expanded its strength against a basket of peers, thereby
indirectly hampering export-led businesses, although
some weakening began towards the end of the Fiscal
Year. The Board also approved a dedicated allocation to
cash for liquidity and rebalancing purposes.
From an investment perspective, infrastructure and private
debt provided hedges to inflation while public equities
rallied, earning nearly 20%. From a profit and loss
perspective, the total fund increased by $292 million. The
strategic asset allocation that went into effect July 1, 2021
continues to diversify the portfolio over the long-term
with all major asset class groupings continuing to be
defined by their respective ‘beta group’ for risk
management purposes.
The System generated a net return of 10.4% and
outperformed its policy benchmark by 0.50% in Fiscal
Year 2024, as reported by its custodian Northern Trust.
The System outperformed its assumed rate of return by
3.5% and, across longer investment horizons, also
outperformed its assumed rate of return and policy
benchmark.
Public equities, led by an increased appetite in Artificial
Intelligence (AI)-driven stocks, continued its meteoric rise
but remained overweight by 5.6%. Existing and new
commitments in Private Real Estate, Infrastructure,
Private Equity, and Alternative Credit continue to be
funded. All strategies except for core real estate earned
positive absolute performance. The System completed
three searches across Real Estate, Infrastructure, and
Private Equity.
City of Fresno Fire and Police Retirement System l INVESTMENT
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 65
Investment Performance
The System earned a gross return of 10.59%. The table
below highlights the performance of each major asset
class provided by the System's custodian, Northern Trust.
These returns may differ slightly from the performance
reported by the System's investment consultant due to
rounding:
Asset Class Gross Return Net Return
Total Fund 10.59%10.41%
Domestic Equity 23.19%23.18%
International Equity 10.49%10.07%
Private Equity 9.83%9.83%
Rates/Credit 9.99%9.91%
Real Assets (0.48)%(0.77)%
Multi-Assets 10.79%10.79%
Fiscal-Year End Fund
Value $2,203,370,816
The System’s 10, 15, and 20-year long-term gross returns
of 7.49, 9.54, and 7.57 percent, respectively, illustrate the
System’s ability to achieve our long-term objectives over
extended periods. Meanwhile, the System remains highly
funded and well positioned to serve our members and
retirees.
The principal goals of the System’s Board in managing
the System’s Investment Portfolio are the following:
1) To fund the System’s benefit payments;
2) To assume a prudent risk posture to minimize the
cost of meeting the obligations of the System;
3) To comply with legal statutes and regulations; and
4) To maintain a fully funded pension status.
Presented in the graph below are the System’s Total Fund
returns versus NEPC, LLC’s InvestorForce (IF) Public
Funds Universe (Gross of Fees), for plans with $1 billion
or more in assets:
Period Ending June 30Percentage %City of Fresno Retirement Systems
Fiscal Year Total Fund and Median Fund Annual Returns
Fresno Total Fund (Gross of Fees)Weighted Benchmark Indexes
IF Median Public Pension Fund
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
-10%
-5%
0%
5%
10%
15%
20%
25%
30%
35%
City of Fresno Fire and Police Retirement System l INVESTMENT
Investment Report from the Retirement Administrator Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 66
Summary of Portfolio Results
The fiscal year ended June 30, 2024, marked an
extraordinarily volatile year which was overwhelmed by
exogenous economic events. The System experienced a
total gross return of 10.59 percent for the fiscal year
ended June 30, 2024, outperforming the System’s
actuarial interest rate assumption of 6.75 percent by 3.84
percent and outperforming the System’s policy
benchmark (a weighted average of the fund’s asset classes
and their respective benchmarks) return of 9.89 percent by
0.70 percent. The System’s ten-year annualized returns
averaged 7.49 percent, outperforming its policy
benchmark return of 6.66 percent for the period by 0.83
percent. Over the longer term, our investment results
remain sound with annualized returns of 7.57 percent and
6.89 percent, respectively, over the past twenty and
twenty-five years. After paying all benefits and expenses
of the System, the year-end value of the System reached
$2.203 billion.
General Information
The System’s investment assets are managed by external
investment management firms. Professional investment
consultants, along with staff, closely monitor the activity
of these managers and assist the Board with the
implementation of investment policies and long-term
strategies. The System’s goal is to fund benefit payments,
while assuming a risk posture that is consistent with the
Board’s risk tolerance, protecting against loss of
purchasing power by achieving rates of return above
inflation, and to maintain a fully funded pension status.
Summary of General Investment
Guidelines, Policies and Procedures
The Board, having the sole and exclusive authority and
fiduciary responsibility for the administration of the
System and its assets, has adopted an Investment Policy
Statement which reflects the Board’s policies for
management of the System’s investments. The Board
reserves the right to amend, supplement or rescind this
statement at any time. This Investment Policy Statement
establishes the investment program goals and policies,
asset allocation policies, and beliefs. It also defines the
principal duties of the Board, staff, investment managers,
master custodian and consultants.
An integral part of the overall investment policy is the
strategic asset allocation policy. This allocation mix is
designed to provide return expectations that reflect
expected risk. This emphasizes a maximum
diversification of the portfolio that protects the System
from declines that a particular asset class may experience
in a given period. Both traditional assets (equities and
fixed income) and non-traditional assets (real estate,
infrastructure, midstream energy, private equity, and
private debt) are included in the mix.
Total portfolio return, over the long-term, is directed
toward achieving and maintaining a fully funded status
for the System. Prudent risk taking is warranted within
the context of overall portfolio diversification to meet this
objective. All activities will be conducted so as to serve
the best interests of the System’s members and
beneficiaries.
City of Fresno Fire and Police Retirement System l INVESTMENT
Investment Report from the Retirement Administrator Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 67
Summary of Proxy Voting Guidelines and
Procedures
In recognition of its duty to manage retirement plan assets
in the best interest of the plan participants, the Board has
established proxy voting guidelines and procedures which
are intended to assist in the faithful discharge of the
Board’s duty to vote proxies on behalf of plan
participants. These guidelines consist of preferences with
respect to specific, recurring proxy-voting issues followed
by a general statement of voting policies. The System
will at all times strive to cast proxy votes so as to advance
the overall good of the System.
Specific Investment Results by Asset
Classification
As of June 30, 2024, the System’s portfolio was slightly
over-weight in total equities, with 51.8 percent in total
equities versus the target of 47.0 percent. Domestic
equities were slightly over-weight with 24.6 percent
versus the target of 22.5 percent, and international
equities with 20.0 percent developed were slightly over-
weight of the international equities target of 18.0 percent.
Private equity was slightly over-weight of the target of
6.5% with 7.2%. Rates/Credit with 24.7 percent was
under-weight of its target of 27.0 percent and real assets at
20.9 percent was 1.1 percent under-weight of its target of
22.0 percent. Multi-Asset investments represented 1.6
percent of the System's portfolio, which is 2.4 percent
under-weight of its target of 4.0 percent.
The investments were further diversified into the following asset classes and target percentages:
Asset Classification Actual Target
Equities
Domestic 24.6%22.5%
International 20.0%18.0%
Private 7.2%6.5%
Rates/Credit
Core Fixed Income 11.6%13.0%
Private Debt/Credit 13.1%14.0%
Real Assets
Core Real Estate 9.7%9.0%
Non-Core Real Estate 5.2%6.0%
Infrastructure 6.0%7.0%
Multi-Asset
Alternative Credit 1.6%4.0%
Short-Term Investments 1.0%—%
Total 100.0%100.0%
City of Fresno Fire and Police Retirement System l INVESTMENT
Investment Report from the Retirement Administrator Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 68
City of Fresno Fire and Police Retirement System l INVESTMENT
Investment Report from the Retirement Administrator Continued
This asset class diversification allows the Joint Boards to monitor and adjust their risk in accordance with its Investment
Policy Statement. The investment returns presented herein are based on the modified Dietz rate of return methodology. As
Fiscal Year 2024 came to a close, specific domestic public equities, moderating inflation, and a strong U.S. dollar created
unique challenges for global investors. These uncertainties provide little comfort to asset allocators in the near-term but
unique opportunities to exploit inefficiencies in the long-term. Market participants expect some relief from the current
interest rate regime to be in place for the near- to short-term periods and a potential soft landing for the domestic economy in
2024. However, the U.S. economy has been far more resilient than expected relative to peers but a looming election season
later in the calendar year could upend the trend. The Fund earned positive relative and absolute returns, with continued
diversification across strategies and regions.
Respectfully submitted,
Robert T. Theller
Robert T. Theller, Esq.
Retirement Administrator
December 4, 2024
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 69
Investment Consultant’s Report
City of Fresno Fire and Police Retirement System l INVESTMENT
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 70
City of Fresno Fire and Police Retirement System l INVESTMENT
Investment Consultant's Report Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 71
Investment Results
Gross of Fees Ending June 30, 2024
Fair Value ($)% of Portfolio 1 Yr (%)3 Yrs (%)5 Yrs (%)10 Yrs (%)
Total Fund 3,977,605,691 100.00 10.59 4.06 8.42 7.49
Policy Index 10.23 3.10 7.08 6.54
InvMetrics Public DB > $1 Billion Median 9.96 3.22 7.37 6.58
Total Equity Composite 2,061,233,403 51.82 16.27 3.14 10.08 8.53
MSCI AC World All Cap Index (Net)19.38 5.43 10.76 8.43
InvMetrics Public DB Global Equity Median
Domestic Equity Composite 977,280,295 24.57 23.18 7.33 13.74 11.82
Domestic Equity Index 23.12 8.05 14.08 11.84
InvMetrics Public DB US Equity Median 21.92 7.13 13.46 11.60
Private Equity 287,374,456 7.22 9.88 12.21 14.72
Private Equity Index 24.29 7.91 12.38 12.20
International Equity Composite 796,578,652 20.03 10.77 -1.99 5.85 5.03
International Equity Index 12.17 0.97 6.40 4.47
InvMetrics Public DB Global ex-US Equity Median 11.28 0.56 6.17 4.70
Total Fixed Income Composite 980,481,133 24.65 10.05 3.28 4.86 4.50
Fixed Income Index 6.86 1.52 3.05 3.40
Blmbg. U.S. Aggregate Index 2.63 -3.02 -0.23 1.35
InvMetrics Public DB Fixed Income Median 4.95 -1.40 1.33 2.50
Core Fixed Composite 459,281,809 11.55 4.90 -1.83 0.95 2.30
Blmbg. U.S. Aggregate Index 2.63 -3.02 -0.23 1.35
InvMetrics Public DB US Fixed Income Median 4.03 -1.99 0.80 2.32
Private Credit 521,199,324 13.10 14.89 10.86 10.53 0.00
Private Credit Index 10.81 3.92 5.12 0.00
Real Assets 832,196,930 20.92 -0.23 7.02 6.06 7.73
Real Estate Index -9.75 1.29 2.54 5.56
InvMetrics Public DB Real Estate Public & Private Median -7.36 2.39 3.61 6.15
Private Real Estate Composite 207,440,094 5.22 3.62 9.37 8.25 11.21
NCREIF ODCE -9.25 1.90 3.16 6.41
Infrastructure 239,869,437 6.03 12.12 7.81 7.11
CPI + 4% (Unadjusted)7.09 9.16 8.34 6.91
Alternative Credit 62,826,152 1.58 10.80 0.00 0.00 0.00
Cash & Equivalents Composite 40,868,073 1.03 5.28 3.92 2.71 1.83
90 Day U.S. Treasury Bill 5.40 3.03 2.16 1.50
Calculations are prepared by NEPC, LLC using a time-weighted rate of return based on fair values.
City of Fresno Fire and Police Retirement System l INVESTMENT
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 72
Investment Results (Continued)
Net of Fees Ending June 30, 2024
Fair Value ($)% of Portfolio 1 Yr (%)3 Yrs (%)5 Yrs (%)10 Yrs (%)
Total Fund 3,977,605,691 100.00 10.45 3.93 8.19 7.19
Policy Index 10.23 3.10 7.08 6.54
InvMetrics Public DB > $1 Billion Median 9.57 3.03 7.16 6.28
Total Equity Composite 2,061,233,403 51.82 16.12 3.01 9.99 8.49
MSCI AC World All Cap Index (Net)19.38 5.43 10.76 8.43
InvMetrics Public DB Global Equity Median 16.09 3.63 8.42
Domestic Equity Composite 977,280,295 24.57 23.17 7.29 13.62 11.62
Domestic Equity Index 23.12 8.05 14.08 11.84
InvMetrics Public DB US Equity Median 21.35 6.77 13.10 11.11
Private Equity 287,374,456 7.22 9.88 12.21 14.72
Private Equity Index 24.29 7.91 12.38 12.20
International Equity Composite 796,578,652 20.03 10.45 -2.29 5.51 4.67
International Equity Index 12.17 0.97 6.40 4.47
InvMetrics Public DB Global ex-US Equity Median 10.81 0.40 5.72 4.14
Total Fixed Income Composite 980,481,133 24.65 9.99 3.19 4.81 4.47
Fixed Income Index 6.86 1.52 3.05 3.40
Blmbg. U.S. Aggregate Index 2.63 -3.02 -0.23 1.35
InvMetrics Public DB Fixed Income Median 4.75 -1.69 1.14 2.17
Core Fixed Composite 459,281,809 11.55 4.77 -1.97 0.80 2.15
Blmbg. U.S. Aggregate Index 2.63 -3.02 -0.23 1.35
InvMetrics Public DB US Fixed Income Median 3.84 -2.26 0.73 2.18
Private Credit 521,199,324 13.10 14.89 10.86 10.53 0.00
Private Credit Index 10.81 3.92 5.12 0.00
Real Assets 832,196,930 20.92 -0.44 6.84 5.96 7.67
Real Estate Index -9.75 1.29 2.54 5.56
InvMetrics Public DB Real Estate Public & Private Median -7.81 1.93 3.14 5.54
Private Real Estate Composite 207,440,094 5.22 3.62 9.37 8.25 11.01
NCREIF ODCE -9.25 1.90 3.16 6.41
Infrastructure 239,869,437 6.03 11.53 7.55 6.96
CPI + 4% (Unadjusted)7.09 9.16 8.34 6.91
Midstream Energy 62,826,152 1.58 10.80 0.00 0.00 0.00
Cash & Equivalents Composite 40,868,073 1.03 5.28 3.92 2.71 1.83
90 Day U.S. Treasury Bill 5.40 3.03 2.16 1.50
Calculations are prepared by NEPC, LLC using a time-weighted rate of return based on fair values.
City of Fresno Fire and Police Retirement System l INVESTMENT
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 73
Target and Actual Asset Allocation
As of June 30, 2024
Asset Class Current Target Allocation Range Actual
Domestic Equities 22.5%15.0% - 36.0%24.6%
International Equities 18.0%10.0% - 25.0%20.0%
Private Equity 6.5%0.0% - 10.0%7.2%
Core Fixed Income 13.0%5.0% - 20.0%11.6%
Private Debt/Credit 14.0%5.0% - 20.0%13.1%
Core Real Estate 9.0%5.0% - 15.0%9.7%
Non-Core Real Estate 6.0%2.0% - 8.0%5.2%
Infrastructure 7.0%2.0% -1 0.0%6.0%
Alternative Credit 4.0%0.0% - 7.0%1.6%
Short-Term Investments —%0.0% - 0.0%1.0%
Target Asset Allocation
As of June 30, 2024
Domestic Equities
22.5%
International Equities
18.0%
Private Equity
6.5%
Core Fixed Income
13.0%
Private Debt/Credit
14.0%
Core Real Estate
9.0%
Non-Core Real Estate
6.0%
Infrastructure
7.0%
Alternative Credit
4.0%
City of Fresno Fire and Police Retirement System l INVESTMENT
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 74
Actual Asset Allocation
As of June 30, 2024
Domestic Equities
24.6%
International Equities
20.0%
Private Equity
7.2%
Core Fixed Income
11.6%
Private Debt/Credit
13.1%Core Real Estate
9.7%
Non-Core Real Estate
5.2%
Infrastructure
6.0%
Alternative Credit
1.6%
Short-Term
Investments
1.0%
City of Fresno Fire and Police Retirement System l INVESTMENT
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 75
Largest Stock Holdings (by Fair Value)
As of June 30, 2024
Shares Stock Holding Fair Value
1)314,820 TAIWAN SEMICONDUCTOR MANUFACTURING TWD10 $ 9,374,281
2)110,937 SAMSUNG ELECTRONICS CO KRW100 6,568,350
3)135,361 TENCENT HOLDINGS LIMITED HKD0.00002 6,456,517
4)3,305 MERCADOLIBRE INC COM STK 5,430,630
5)5,095 ASML HOLDING NV EUR0.09 (POST SPLIT) 5,264,771
6)670,774 AIA GROUP LIMITED NPV 4,553,504
7)60,229 CRH PLC EQUITY 4,488,927
8)17,861 SAP SE 3,627,963
9)20,525 ASTRAZENECA ORD USD0.25 3,205,799
10)57,517 UNILEVER PLC ORD GBP0.031111 3,159,135
Total Largest Stock Holdings $ 52,129,877
Largest Bond Holdings (by Fair Value)
As of June 30, 2024
Share/Par Coupon Maturity
Value Bond Holding Rate Date Fair Value
1)4,209,478 UNITED STATES OF AMER TREAS BONDS DTD 4.125%2053/08/15 $ 3,919,912
2)4,047,309 FEDERAL HOME LN MTG CORP POOL #SD7526 2.500%2050/10/01 3,372,484
3)4,141,269 FNMA POOL #FM8308 2.0% DUE 07-01-2051 2.000%2051/07/01 3,298,411
4)3,228,331 FEDERAL HOME LN MTG CORP POOL #RA7194 3.500%2052/04/01 2,872,405
5)3,891,368 UNITED STATES TREAS BDS 2.25% 2.250%2041/05/15 2,815,465
6)3,130,713 FNMA 3.5% 04-01-2052 3.500%2052/04/01 2,793,017
7)3,350,707 FEDERAL HOME LN MTG CORP POOL #SD8090 2.000%2050/09/01 2,645,054
8)3,141,356 FEDERAL HOME LN MTG CORP POOL #SD1581 2.500%2052/09/01 2,568,938
9)2,362,066 PVTPL NAVIENT STUDENT LN TR 2016-5 NT CL 6.700%2065/06/25 2,374,930
10)2,616,222 FNMA POOL #CB3594 3.5% DUE 05-01-2052 3.500%2052/05/01 2,327,794
Total Largest Bond Holdings $ 28,988,410
A complete list of portfolio holdings is available upon request.
City of Fresno Fire and Police Retirement System l INVESTMENT
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 76
Schedule of Commissions
For The Fiscal Year Ended June 30, 2024
Total Number of Commission
Brokerage Firm Commissions Shares Cost/Share
B.RILEY & CO. LLC $ 8,884 3,708,151 $ 0.0024
BARCLAYS CAPITAL 5,677 440,559 0.0129
JEFFERIES LLC. 5,596 20,108,117 0.0003
JEFFERIES INTERNATIONAL LTD 5,471 2,163,312 0.0025
RBC CAPITAL MARKETS, LLC 5,371 711,826 0.0075
UBS SECURITIES ASIA LIMITED 5,268 23,031,997 0.0002
GOLDMAN, SACHS AND CO. 4,953 37,564,863 0.0001
J.P. MORGAN SECURITIES PLC 4,196 559,349 0.0075
CITIGROUP GLOBAL MARKETS INC. 4,066 338,803 0.0120
CREDIT SUISSE INTERNATIONAL 3,613 280,280 0.0129
$ 53,095 88,907,257 $ 0.0006
All Other Brokerage Firms 69,952 1,292,425,546 0.0001
TOTAL $ 123,047 1,381,332,803 $ 0.0001
Investment Summary
For The Fiscal Year Ended June 30, 2024
Investment Value Percent of Fund
Investment
Management Fees
Equity
Domestic $ 536,005,210 24.3%$ 49,612
International 431,079,331 19.5% 1,426,779
Private Equity 159,953,529 7.3% 2,571,834
Fixed Income 272,386,444 12.4% 406,131
Private Debt/Credit 295,521,248 13.4% 24,462,002
Real Assets 464,049,233 21.1% 9,083,714
Multi-Assets 35,351,984 1.6% 992,264
Short-Term Investments 8,156,362 0.4% —
Total $ 2,202,503,341 100.0%$ 38,992,336
City of Fresno Fire and Police Retirement System l INVESTMENT
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 77
Assets will be invested
and administered to
balance the need to
control risk with
superior performance.
We expect excellence
in all activities. We
will also be
accountable and act in
accordance with the
law.
ACTUARIAL
79 Actuarial Certification Letter
82 Summary of Actuarial Assumptions and Funding Method
84 Probabilities of Separation Prior to Retirement
85 Schedule of Active Member Valuation Data
86
Schedule of Retirees and Beneficiaries Added to or
Removed from Rolls
87 Solvency Test
88 Actuarial Analysis of Financial Experience
88 Schedule of Funding Progress
89 Major Benefit Provisions of the Retirement System
91 History of Employer Net Contribution Rates
City of Fresno Fire and Police Retirement System l ACTUARIAL
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 78
Actuarial Certification Letter
City of Fresno Fire and Police Retirement System l ACTUARIAL
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 79
City of Fresno Fire and Police Retirement System l ACTUARIAL
Actuarial Certification Letter Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 80
City of Fresno Fire and Police Retirement System l ACTUARIAL
Actuarial Certification Letter Continued
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 81
Summary of Actuarial Assumptions and Funding Method
These actuarial assumptions and methods based on June 30, 2024 data were adopted by the City of Fresno Fire and Police
System (the System) Retirement Board on November 26, 2024, and are effective for July 1, 2025.
Assumptions
Valuation Interest Rate 6.75%
Inflation:2.50%
Post-Retirement Mortality
(a) Service Retirement
Pub-2010 Safety Healthy Retiree Amount-Weighted
Mortality Table (separate tables for males and
females), projected generationally with the two-
dimensional mortality improvement scale MP-2021.
(b) Beneficiaries
Beneficiaries not Currently in Pay Status • Pub-2010
General Healthy Retiree Amount-Weighted Mortality
Table (separate tables for males and females) with
rates increased by 5%, projected generationally with
the two-dimensional mortality improvement scale
MP-2021.
Beneficiaries in Pay Status • Pub-2010 Contingent
Survivor Amount-Weighted Mortality Table
(separate tables for males and females) with rates
increased by 5%, projected generationally with the
two-dimensional mortality improvement scale
MP-2021.
(c) Disability Retirement
Pub-2010 Safety Disabled Retiree Amount-Weighted
Mortality Table (separate tables for males and
females), projected generationally with the two
dimensional mortality improvement scale MP-2021.
The Pub-2010 mortality tables and adjustments as shown
above reasonably reflect the mortality experience as of the
measurement date. These mortality tables were adjusted
to future years using the generational projection to reflect
future mortality improvement between the measurement
date and those years.
Pre-Retirement Mortality
Based upon the Analysis of Actuarial Experience during
the period July 1, 2018 through June 30, 2021.
Withdrawal Rates
Based upon the Analysis of Actuarial Experience during
the period July 1, 2018 through June 30, 2021.
Disability Rates
Based upon the Analysis of Actuarial Experience during
the period July 1, 2018 through June 30, 2021.
Service Retirement Rates
Based upon the Analysis of Actuarial Experience during
the period July 1, 2018 through June 30, 2021.
Assets
Five-year smoothed recognition of realized and unrealized
capital gains and losses greater or lesser than the actuarial
assumed rate of return.
City of Fresno Fire and Police Retirement System l ACTUARIAL
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 82
Summary of Actuarial Assumptions and Funding Method Continued
Funding Method
The System’s liability is being funded on the Entry Age
Normal Cost method with the Unfunded Actuarial
Accrued Liability (UAAL) amortized as a level
percentage of payroll. There is no UAAL as of June 30,
2024.
The System’s funding policy for determining Total
Pension Liability (for funding purposes) uses a version of
the Entry Age method whereby the Actuarial Accrued
Liability is fully accrued when a member retires from
employment after participating in DROP (Deferred
Retirement Option Program). While for financial
reporting purposes only, in accordance with
Governmental Accounting Standards Board (GASB)
Statement No. 67 (GASB 67) provisions, for determining
Total Pension Liability, the Actuarial Accrued Liability is
fully accrued when a member either enters DROP or is
expected to elect DROP. (See page 32 of the Financial
Section and pages 60 and 61 of the Required
Supplementary Information on the different actuarial
assumptions used for financial reporting versus funding
progress.)
Cost-of-Living Adjustment (COLA)
Assumption
The annual cost-of-living adjustment (COLA) is 2.50%
for Tier 2 members and 3.00% for Tier 1 members and
retirees who have retired with the final average formula,
or with the career average formula.
DROP Assumptions
Tier 1 Tier 2
1st year eligible 100%40%
Following year 0%10%
Next following year 0%5%
Thereafter 0%0%
Members are assumed to remain in the Deferred
Retirement Option Program (DROP) for 7 years.
Ultimate Salary Scale
Salary Scale is made up of merit and longevity, and
inflation components. The inflation component is equal to
2.50%; plus 0.50% real across-the-board salary increase.
The merit and promotion component varies by service and
is illustrated below:
Years of Service Merit and Promotion Assumption
< 1 year 10.00%
1 - 2 years 10.00%
2 - 3 years 5.00%
3 - 4 years 4.00%
4 - 5 years 4.00%
5 - 6 years 4.00%
6 - 7 years 1.75%
7 - 10 years 1.00%
10 & Over 1.00%
City of Fresno Fire and Police Retirement System l ACTUARIAL
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 83
Probabilities of Separation Prior to Retirement
Mortality
Rate (%)
Tier 1 and Tier 2
Age Male Female
25 0.04 0.02
30 0.04 0.03
35 0.05 0.04
40 0.06 0.05
45 0.08 0.07
50 0.12 0.09
55 0.18 0.12
60 0.26 0.17
65 0.41 0.23
70 0.77 0.45
All pre-retirement deaths are assumed to be duty.
Disability
Rate (%)
Tier 1 Tier 2
Age Duty Non-Duty Duty Non-Duty
20 0.02 0.00 0.06 0.00
25 0.14 0.01 0.10 0.01
30 0.26 0.01 0.40 0.01
35 0.39 0.03 0.72 0.03
40 0.60 0.12 1.04 0.14
45 0.88 0.25 1.20 0.23
50 2.80 0.20 1.32 0.16
55 8.20 0.00 3.86 0.00
60 0.00 0.00 11.38 0.00
65 0.00 0.00 0.00 0.00
Total Termination
(Less Than 5 years of service)
Total Termination
(5 or more years of service)
Rate (%)Rate (%)
Service Tier 1 Tier 2 Age
Tier 1
Tier 25-10 Years 10+ Years
0 – 1 4.47 10.00 20 2.87 3.57 2.00
1 – 2 4.47 6.00 25 2.87 3.57 2.00
2 – 3 4.47 4.00 30 1.88 2.63 2.00
3 – 4 4.47 3.00 35 0.87 1.44 2.00
4 – 5 4.47 2.00 40 0.44 0.92 1.50
45 0.19 0.63 1.50
100% of members are assumed to elect a
withdrawal of contributions. No
termination is assumed after a member is
assumed to retire.
50 0.00 0.00 0.00
100% of Tier 1 members with 5 – 10 years of service, 0% of Tier 1
members with 10+ years of service and 30% of Tier 2 members with 5+
years of service are assumed to elect a withdrawal of contributions. The
remaining members are assumed to elect a deferred vested benefit. No
termination is assumed after a member is assumed to retire.
City of Fresno Fire and Police Retirement System l ACTUARIAL
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 84
Schedule of Active Member Valuation Data
% Increase
Valuation Annual Annual (Decrease)
Date Active/DROP Number Payroll Average Pay in Average Pay
June 30, 2024 Active Members 1,148 $ 145,885,780 $ 127,078 9.4%
DROP Participants 77 11,983,885 155,635 11.7%
Totals 1,225 $ 157,869,665 $ 282,713
June 30, 2023 Active Members 1,111 $ 129,017,259 $ 116,127 4.7%
DROP Participants 92 12,823,477 139,386 4.1%
Totals 1,203 $ 141,840,736 $ 255,513
June 30, 2022 Active Members 1,045 $ 115,913,278 $ 110,922 1.3%
DROP Participants 89 11,912,877 133,853 5.3%
Totals 1,134 $ 127,826,155 $ 244,775
June 30, 2021 Active Members 987 $ 108,105,135 $ 109,529 3.5%
DROP Participants 95 12,071,386 127,067 0.8%
Totals 1,082 $ 120,176,521 $ 236,596
June 30, 2020 Active Members 999 $ 105,679,917 $ 105,786 5.2%
DROP Participants 97 12,222,365 126,004 1.6%
Totals 1,096 $ 117,902,282 $ 231,790
June 30, 2019 Active Members 1,033 $ 103,910,274 $ 100,591 4.6%
DROP Participants 90 11,163,174 124,035 4.3%
Totals 1,123 $ 115,073,448 $ 224,626
June 30, 2018 Active Members 1,043 $ 100,270,371 $ 96,137 3.6%
DROP Participants 90 10,701,563 118,906 5.4%
Totals 1,133 $ 110,971,934 $ 215,043
June 30, 2017 Active Members 990 $ 91,850,923 $ 92,779 1.1%
DROP Participants 96 10,828,198 112,794 1.1%
Totals 1,086 $ 102,679,121 $ 205,573
June 30, 2016 Active Members 947 $ 86,884,960 $ 91,748 (2.5)%
DROP Participants 107 11,932,935 111,523 1.3%
Totals 1,054 $ 98,817,895 $ 203,271
June 30, 2015 Active Members 880 $ 82,820,376 $ 94,114 2.2%
DROP Participants 113 12,441,847 110,105 3.1%
Totals 993 $ 95,262,223 $ 204,219
City of Fresno Fire and Police Retirement System l ACTUARIAL
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 85
Schedule of Retirees and Beneficiaries Added to
or Removed from Rolls
Added to Rolls Removed from Rolls Rolls at Fiscal-Year End
Fiscal Year
Ended June 30 Number
Annual
Allowance Number
Annual
Allowance Number
Annual
Allowance
Average
Annual
Allowance
% Increase /
(Decrease)
in Retiree
Allowance
2024 69 $2,607,161 (36)($1,131,426)1,220 $89,195,842 $73,111 8.05
2023 53 $1,969,110 (20)($503,250)1,187 $80,314,864 $67,662 4.37
2022 63 $2,682,320 (34)($918,250)1,154 $74,809,611 $64,826 4.62
2021 44 $1,429,318 (25)($672,017)1,125 $69,707,525 $61,962 2.31
2020 51 $1,341,603 (30)($1,012,050)1,106 $66,983,928 $60,564 0.92
2019 48 $1,585,314 (29)($676,320)1,085 $65,113,142 $60,012 2.34
2018 51 $1,231,992 (31)($708,568)1,066 $62,510,828 $58,641 4.41
2017 55 $1,432,672 (20)($456,710)1,046 $58,748,302 $56,165 2.48
2016 32 $728,058 (26)($730,485)1,011 $55,408,166 $54,805 2.55
2015 48 $1,429,630 (21)($514,195)1,005 $53,711,161 $53,444 (0.58)
City of Fresno Fire and Police Retirement System l ACTUARIAL
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 86
Solvency Test (In thousands)
Portion of Accrued Liabilities
Aggregate Accrued Liabilities for Covered by Reported Asset
Valuation
Date as of
June 30
Active
Member
Contributions
Retirees and
Beneficiaries
(Includes
Deferred Vested)
Active Members
(Employer
Financed Portion)
Actuarial
Valuation
Value of
Assets
Active
Member
Contributions
Retirees and
Beneficiaries
(Includes
Deferred
Vested)
Active
Members
(Employer
Financed
Portion)
2024 $204,590 $1,122,027 $406,146 $1,991,117 100%100%100%
2023 197,857 1,064,705 344,724 1,876,149 100%100%100%
2022 191,651 982,691 312,269 1,791,487 100%100%100%
2021 186,156 920,277 288,707 1,695,906 100%100%100%
2020 180,093 880,163 270,890 1,547,641 100%100%100%
2019 173,489 839,837 264,423 1,495,023 100%100%100%
2018 165,233 801,931 227,567 1,436,725 100%100%100%
2017 154,607 770,352 206,389 1,354,974 100%100%100%
2016 143,208 728,510 195,698 1,276,604 100%100%100%
2015 131,828 713,712 174,376 1,220,269 100%100%100%
City of Fresno Fire and Police Retirement System l ACTUARIAL
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 87
Actuarial Analysis of Financial Experience
(Dollars in Millions)
Plan Years
2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Prior Valuation Actuarial Accrued Liability $1,607 $1,487 $1,395 $1,331 $1,278 $1,195 $1,131 $1,067 $1,020 $1,006
Salary Increase Greater/(Less) than Expected 38 15 4 —14 —5 (9)(28)(10)
Asset Return (Greater)/Less than Expected ——————————
COLA Increase Greater/(Less) than Expected 5 28 17 (2)(4)(5)(6)11 (24)(27)
Other Experience 15 13 10 4 (5)1 9 11 8 1
Economic Assumption Changes ——(3)—(14)31 3 —50 —
Non-economic Assumption Changes ——————————
Normal Cost 48 43 40 39 39 35 33 32 30 30
Interest 107 99 97 92 88 85 81 76 76 75
Payments (87)(78)(73)(69)(65)(64)(61)(57)(55)(54)
Change in Valuation Programs and Methods ————————(10)(1)
Ending Actuarial Accrued Liability $1,733 $1,607 $1,487 $1,395 $1,331 $1,278 $1,195 $1,131 $1,067 $1,020
Schedule of Funding Progress
(Dollars in Millions)
(6)
(1)(2)(4)Prefunded /
Actuarial Actuarial (3)Prefunded /(5)(Unfunded AAL)
Actuarial Valuation Accrued Percentage (Unfunded Annual Percentage of
Valuation Value of Liability Funded AAL)Covered Covered Payroll
As of June 30 Assets (AAL)(1) / (2)(2) - (1)Payroll [(2) - (1)] / (5)
2024 $1,991 $1,733 114.9%$258 $158 163.60%
2023 $1,876 $1,607 116.7%$269 $142 189.60%
2022 $1,791 $1,487 120.5%$304 $128 238.50%
2021 $1,696 $1,395 121.6%$301 $120 250.30%
2020 $1,548 $1,331 116.3%$216 $118 183.60%
2019 $1,495 $1,278 117.0%$217 $115 188.80%
2018 $1,437 $1,195 120.3%$242 $111 218.10%
2017 $1,355 $1,131 119.8%$224 $103 217.80%
2016 $1,277 $1067 119.6%$209 $99 211.70%
2015 $1,220 $1020 119.6%$200 $95 210.30%
City of Fresno Fire and Police Retirement System l ACTUARIAL
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 88
Major Benefit Provisions of the Retirement System
Coverage All Fire and Police employees hired
on or after October 27, 1927, and before August
27, 1990.
All Fire and Police employees hired on or after
August 27, 1990.
Final Average Salary
(FAS)
A. Three-year final average salary; or
B. Salary attached to rank,
average-service weighted
compensation for each rank held.
A. Highest three consecutive year average.
Service Retirement Requirement:
Age 50 and 10 years of Service, or age 60.
Benefit: (1) and (2)
1. 2¾% of FAS times years of service
before age 50, not to exceed 20 years.
2. 2% of FAS times years of service
after age 50, not to exceed 10 years
Requirement:
Age 50 and 5 years of service.
Benefit:
Retirement Age Benefit Formula
50
51
52
53
54
55 and over
2.00% x FAS x service
2.14% x FAS x service
2.28% x FAS x service
2.42% x FAS x service
2.56% x FAS x service
2.70% x FAS x service
Maximum Benefit: 75% of FAS Maximum Benefit: 75% of FAS
Deferred Retirement
Option Program
(DROP)
An employee who is age 50 with 10 years of
service may join the DROP program which is in
essence an alternative form of retirement
distribution. Retirement amount is calculated and
monthly deposits are made to the employee’s
DROP account while the employee continues to
work for a maximum of 10 years.
An employee who is age 50 with 5 years of service
may join the DROP program which is in essence an
alternative form of retirement distribution.
Retirement amount is calculated and monthly
deposits are made to the employee’s DROP account
while the employee continues to work for a
maximum of 10 years.
Disability Retirement a. Requirements:
1. Service-Connected: None
2. Non-Service Connected:
10 years of service.
a. Requirements:
1. Service-Connected: None
2. Non-Service Connected:
10 years of service.
b. Benefit:
1. Service-Connected:
55% of FAS or service retirement,
if higher.
2. Non-Service Connected:
1.65% x FAS x years of service, if
exceeds 36.67% of FAS; or 36.67% of
FAS; or service retirement, if higher.
b. Benefit:
1. Service-Connected:
50% of FAS or service retirement,
if higher.
2. Non-Service Connected:
1½% x FAS x years of service,
if exceeds 1/3 of FAS; or 1/3 of
FAS; or service retirement, if
higher.
Benefit reduced to the extent that income earned
while on disability and the amount of the disability
retirement benefits exceeds the current salary
attached to the last rank held.
Benefit reduced to the extent that income earned
while on disability and the amount of the disability
retirement benefits exceeds the current salary
attached to the last rank held.
Fire & Police First Tier Fire & Police Second Tier
City of Fresno Fire and Police Retirement System l ACTUARIAL
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 89
Major Benefit Provisions of the Retirement System Continued
Death Before
Retirement
a. Before eligible to retire for disability
(less than 5 years).
1. One month’s salary for each year of
service, not-to-exceed 6 months.
2. Return of contributions with interest.
a. While eligible to retire (after
10 years): 2/3 of Service or
Non-Service-connected
Disability Retirement Benefit.
b. Service-Connected Death:
55% of FAS
a. Before eligible to retire (less than 5 years).
1. One month’s salary for each year of
service, not-to-exceed 6 months.
2. Return of contributions with interest.
a. While eligible to retire (after 5
years): 2/3 of Service or Non-
Service-connected Disability
Retirement Benefit
b. Service-Connected Death:
50% of FAS
Death After Retirement Two-thirds of the member’s allowance continued to
eligible spouse for life.
Two-thirds of the member’s allowance continued
to eligible spouse for life.
Withdrawal Benefits a. If less than 10 years of service, return of
contributions.
b. If greater than 10 years of service, right to have
vested deferred retirement benefit at normal
retirement date.
a. If less than 5 years of service, return of
contributions.
b. If greater than 5 years of service, right to have
vested deferred retirement benefit.
Post Retirement
Supplemental Benefit
(PRSB)
On May 27, 1998, the City Council adopted the Post
Retirement Supplemental Benefit (“PRSB”)
Program which is intended to provide assistance to
retirees to pay for various post retirement expenses.
Annually, after an actuarial study has been
performed, the Retirement Board will review the
availability of surplus earnings in the System and
determine whether a benefit can be paid to eligible
PRSB recipients. If a surplus is declared by the
Retirement Board, PRSB benefit payments will be
calculated for eligible recipients and payments for
the following calendar year will begin in January.
On May 27, 1998, the City Council adopted the
Post Retirement Supplemental Benefit (“PRSB”)
Program which is intended to provide assistance to
retirees to pay for various post retirement
expenses. Annually, after an actuarial study has
been performed, the Retirement Board will review
the availability of surplus earnings in the System
and determine whether a benefit can be paid to
eligible PRSB recipients. If a surplus is declared
by the Retirement Board, PRSB benefit payments
will be calculated for eligible recipients and
payments for the following calendar year will
begin in January.
Cost-of-Living Benefits a. Based on the weighted mean average
compensation attached to all ranks in
the department, limited to a 5%
maximum change per year, if based on
three-year FAS.
b. Based on salary increase for each rank
held, if benefit was calculated on salary
attached to average rank.
a. Based on the Consumer Price Index
for all Urban Wage Earners and all
Clerical Workers (U.S. City Average)
limited to 3% change per year.
Member Contribution
Rates
Varies based on entry age.9% of Compensation.
Fire & Police First Tier Fire and Police Second Tier
City of Fresno Fire and Police Retirement System l ACTUARIAL
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 90
History of Employer Net Contribution Rates (Tier 1)
Employer Normal Employer Net Contribution
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
Fiscal Year Ending June 30 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Employer Normal 27.80 % 26.88 % 29.59 % 28.38 % 28.45 % 27.77 % 29.55 % 28.76 % 29.80 % 30.25 %
Prefunded Liability/Prepaid Contributions 6.97 % 6.74 % 10.57 % 9.46 % 9.73 % 8.18 % 6.73 % 6.20 % 9.46 % 9.17 %
Employer Net Contribution 20.83 % 20.14 % 19.02 % 18.92 % 18.72 % 19.59 % 22.82 % 22.56 % 20.34 % 21.08 %
City of Fresno Fire and Police Retirement System l ACTUARIAL
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 91
History of Employer Net Contribution Rates (Tier 2)
Employer Normal Employer Net Contribution
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
Fiscal Year Ending June 30 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Employer Normal 22.09 % 22.07 % 22.24 % 23.15 % 23.07 % 23.29 % 25.79 % 25.27 % 25.35 % 25.47 %
Prefunded Liability/Prepaid Contributions 1.26 % 1.93 % 3.22 % 4.23 % 4.35 % 3.70 % 2.97 % 2.71 % 5.01 % 4.39 %
Employer Net Contribution 20.83 % 20.14 % 19.02 % 18.92 % 18.72 % 19.59 % 22.82 % 22.56 % 20.34 % 21.08 %
City of Fresno Fire and Police Retirement System l ACTUARIAL
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 92
To create an environment
in which Board Members
can maximize their
performance as trustees.
To improve business
processes and our delivery
of services provided to
members and retirees.
To improve
communications with
members, retirees and the
employer.
STATISTICAL
94 Statistical Section Review
95 Schedule of Changes in Fiduciary Net Position
96 Schedule and Graph of Additions by Source
97 Schedule and Graph of Deductions by Type
98 Membership Information
City of Fresno Fire and Police Retirement System l STATISTICAL
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 93
Statistical Section Review
This section provides additional historical perspective, context, and detail in order to provide a more comprehensive
understanding of this year’s financial statements, note disclosures, and supplementary information which covers the benefits
provided by the City of Fresno Fire and Police Retirement System (System).
It also provides multi-year trend of financial and operation information to facilitate comprehensive understanding of how the
System’s financial position and performance has changed over time.
More specifically, the financial and operating information provides contextual data for the System’s net position, benefits,
refunds, contribution rates and different types of retirement benefits.
The financial and operating trend information is located on the following pages.
City of Fresno Fire and Police Retirement System l STATISTICAL
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 94
Schedule of Changes in Fiduciary Net Position
Last Ten Fiscal Years 2015 - 2024
(Dollars in Millions)
2024 2023 2022 2021 2020
Additions
Employer Contributions $ 30.6 $ 27.1 $ 27.6 $ 26.3 $ 22.3
Member Contributions 13.1 12.1 11.0 10.3 10.0
Investment Income (Loss)206.5 198.9 (160.6)491.7 24.20
Total Additions $ 250.2 $ 238.1 $ (122.0) $ 528.3 $ 56.5
Deductions
Benefit Payments $ 86.7 $ 77.7 $ 72.8 $ 68.0 $ 65.0
Post Retirement Supplemental Benefits 2.5 2.7 2.0 1.7 2.0
Refunds 1.0 0.5 0.4 1.2 0.2
Administrative 2.5 2.4 2.1 2.3 1.8
Total Deductions 92.7 83.3 77.3 73.2 69.0
Change in Fiduciary Net Position $ 157.5 $ 154.8 $ (199.3) $ 455.1 $ (12.5)
2019 2018 2017 2016 2015
Additions
Employer Contributions $ 20.6 $ 19.7 $ 18.5 $ 18.7 $ 19.0
Member Contributions 9.6 9.0 8.2 7.7 7.4
Investment Income (Loss) 82.9 129.1 192.3 6.1 39.1
Total Additions $ 113.1 $ 157.8 $ 219.0 $ 32.5 $ 65.5
Deductions
Benefit Payments $ 63.0 $ 60.5 $ 57.0 $ 54.4 $ 53.5
Post Retirement Supplemental Benefits 2.1 2.0 1.7 1.0 0.2
Refunds 0.9 0.6 0.6 1.2 0.9
Administrative 1.9 1.7 1.5 1.4 1.1
Total Deductions 67.9 64.8 60.8 58.0 55.7
Change in Fiduciary Net Position $ 45.2 $ 93.0 $ 158.2 $ (25.5) $ 9.8
City of Fresno Fire and Police Retirement System l STATISTICAL
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 95
Schedule and Graph of Additions by Source (In Thousands)
Last Ten Fiscal Years 2015 - 2024
EMPLOYER CONTRIBUTIONS EMPLOYEE CONTRIBUTIONS
INVESTMENT INCOME (LOSS)
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
$-300,000
$-200,000
$-100,000
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
EMPLOYER CONTRIBUTIONS $ 18,967 $ 18,738 $ 18,543 $ 19,697 $ 20,604 $ 22,324 $ 26,315 $ 27,556 $ 27,068 $ 30,635
EMPLOYEE CONTRIBUTIONS 7,385 7,748 8,169 8,964 9,597 10,012 10,256 10,973 12,054 13,108
INVESTMENT INCOME (LOSS) 39,164 6,063 192,318 129,162 82,872 24,205 491,745 (160,518)198,976 206,468
TOTAL $ 65,516 $ 32,549 $ 219,030 $ 157,823 $ 113,073 $ 56,541 $ 528,316 $ (121,989) $ 238,098 $ 250,211
City of Fresno Fire and Police Retirement System l STATISTICAL
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 96
Schedule and Graph of Deductions by Type (In Thousands)
Last Ten Fiscal Years 2015 - 2024
PROFESSIONAL & ADMINISTRATIVE REFUNDS
SURVIVORS NON-SERVICE DISABILITY
SERVICE DISABILITY SERVICE RETIREMENTS
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
$0
$20,000
$40,000
$60,000
$80,000
$100,000
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
SERVICE RETIREMENTS $ 25,657 $ 25,662 $ 28,079 $ 28,855 $ 27,381 $ 28,753 $ 31,484 $ 33,324 $ 34,732 $ 41,894
SERVICE DISABILITY 23,336 24,753 25,539 28,533 31,033 30,529 30,743 33,301 36,584 38,120
NON-SERVICE DISABILITY 349 340 350 280 285 170 132 234 147 151
SURVIVORS 4,370 4,653 4,780 4,843 6,414 7,532 7,348 7,950 8,852 9,031
REFUNDS 901 1,173 525 560 849 218 1,255 369 622 1,024
PROFESSIONAL &
ADMINISTRATIVE 1,107 1,397 1,503 1,710 1,897 1,839 2,283 2,126 2,401 2,457
TOTAL $ 55,720 $ 57,978 $ 60,776 $ 64,781 $ 67,859 $ 69,041 $ 73,245 $ 77,304 $ 83,338 $ 92,677
City of Fresno Fire and Police Retirement System l STATISTICAL
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 97
Schedule of Average Benefit Payments
Years of Credited Service Fiscal Year
Average/
New
Retirement Effective Dates 5-10 10-15 15-20 20-25 25-30 30+Retirees
Period 7/1/23 to 6/30/24*
Average Monthly Pension Benefits $ 3,544 $ 4,969 $ 4,852 $ 6,457 $ 7,754 $ — $ 4,596
Average Monthly DROP Payment — — 720 1,617 2,828 — 861
Average Final Average Salary 8,397 9,208 9,173 9,788 10,001 — 7,761
Number of New Retired Members 3 1 18 19 11 — 52
Period 7/1/22 to 6/30/23*
Average Monthly Pension Benefits $ 2,246 $ 3,070 $ 4,460 $ 6,256 $ 8,292 $ 7,195 $ 5,253
Average Monthly DROP Payment — — 1,236 1,222 1,522 — 663
Average Final Average Salary 7,311 8,145 9,333 10,433 12,280 9,487 9,498
Number of New Retired Members 6 8 9 14 8 1 46
Period 7/1/21 to 6/30/22*
Average Monthly Pension Benefits $ 962 $ 3,637 $ 4,196 $ 5,617 $ 7,881 $ — $ 3,716
Average Monthly DROP Payment — 602 442 2,658 3,862 — 1,261
Average Final Average Salary 6,283 7,810 8,925 8,769 11,007 — 7,132
Number of New Retired Members 1 2 11 18 11 — 43
Period 7/1/20 to 6/30/21*
Average Monthly Pension Benefits $ — $ 4,255 $ 3,651 $ 5,388 $ 7,268 $ 9,424 $ 4,998
Average Monthly DROP Payment — — 653 2,570 4,982 10,234 3,073
Average Final Average Salary — 9,661 8,278 8,864 11,179 14,679 8,777
Number of New Retired Members — 6 4 16 8 1 35
Period 7/1/19 to 6/30/20*
Average Monthly Pension Benefits $ 1,330 $ 3,419 $ 3,639 $ 4,620 $ 5,394 $ 11,451 $ 4,976
Average Monthly DROP Payment — 779 1,222 1,951 409 12,414 2,796
Average Final Average Salary 6,283 6,873 8,206 8,385 9,513 18,542 9,634
Number of New Retired Members 1 7 7 13 4 1 33
*The Schedule of Average Benefit Payments includes information in accordance with GASB Statement No. 44 for the periods
from July 1, 2016 through June 30, 2024. Since implementing PG3 - our new Pension Administration System commencing July
1, 2015, we are now able to capture information prospectively that is necessary for the System to comply with GASB 44
reporting. The System will provide 10 years in the format required by GASB 44 as information becomes available.
City of Fresno Fire and Police Retirement System l STATISTICAL
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 98
Schedule of Average Benefit Payments (Continued)
Years of Credited Service Fiscal Year
Average/
New
Retirement Effective Dates 5-10 10-15 15-20 20-25 25-30 30+Retirees
Period 7/1/18 to 6/30/19*
Average Monthly Pension Benefits $ 3,057 $ 3,519 $ 3,972 $ 5,317 $ 6,012 $ 7,064 $ 4,824
Average Monthly DROP Payment 205 — 858 3,765 4,303 6,515 2,608
Average Final Average Salary 5,052 9,006 8,182 9,428 9,754 11,499 8,820
Number of New Retired Members 3 4 7 8 7 1 30
Period 7/1/17 to 6/30/18*
Average Monthly Pension Benefits $ 2,603 $ 3,469 $ 4,020 $ 5,024 $ 4,923 $ 4,637 $ 4,113
Average Monthly DROP Payment — — 1,174 3,520 2,858 3,108 1,777
Average Final Average Salary 7,949 8,113 7,730 8,508 9,046 7,019 8,061
Number of New Retired Members 7 6 6 9 7 1 36
Period 7/1/16 to 6/30/17*
Average Monthly Pension Benefits $ 1,633 $ 3,211 $ 4,100 $ 5,027 $ 5,481 $ 5,909 $ 4,227
Average Monthly DROP Payment — — 2,305 2,560 4,372 4,266 2,251
Average Final Average Salary 6,049 7,648 8,067 8,565 9,524 10,141 8,332
Number of New Retired Members 3 4 5 11 10 1 34
Period 7/1/15 to 6/30/16*
Average Monthly Pension Benefits $ 612 $ 2,914 $ 3,448 $ 4,268 $ 4,922 $ 3,862 $ 3,338
Average Monthly DROP Payment 0 3,128 1,154 3,245 5,207 2,907 2,607
Average Final Average Salary 4,761 7,579 8,011 7,845 8,928 6,689 7,302
Number of New Retired Members 1 5 5 5 3 3 22
Period 7/1/14 to 6/30/15
Average Monthly Pension Benefits $ 3,735 $ 3,565 $ 3,846 $ 6,323 $ 8,405 $ 7,434 $ 5,551
Number of New Retired Members 1 4 6 10 10 3 34
*The Schedule of Average Benefit Payments includes information in accordance with GASB Statement No. 44 for the periods
from July 1, 2016 through June 30, 2024. Since implementing PG3 - our new Pension Administration System commencing July
1, 2015, we are now able to capture information prospectively that is necessary for the System to comply with GASB 44
reporting. The System will provide 10 years in the format required by GASB 44 as information becomes available.
City of Fresno Fire and Police Retirement System l STATISTICAL
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 99
Retirees by Type of Benefit
As of June 30, 2024
Amount of Number of Type of Retirement*
Monthly Benefit Retirees 1 2 3
$1 - $1,000 60 57 1 2
$1,001 - $2,000 76 65 4 7
$2,001 - $3,000 71 41 11 19
$3,001 - $4,000 134 42 21 71
$4,001 - $5,000 265 36 182 47
$5,001 - $6,000 173 63 94 16
$6,001 - $7,000 0 ———
$7,001 - $8,000 173 86 75 12
$8,001 - $9,000 75 44 30 1
> $9,000 193 114 78 1
Total 1,220 548 496 176
*Type of Retirement
1 - Service Retiree
2 - Disability Retiree
3 - Beneficiary/Continuant/Survivor
Amount of Number of Option Selected**
Monthly Benefit Retirees Unmodified Option 1 Option 2 Option 3
$1 - $1,000 60 47 7 6 —
$1,001 - $2,000 76 52 13 8 3
$2,001 - $3,000 71 47 11 10 3
$3,001 - $4,000 134 80 26 22 6
$4,001 - $5,000 265 151 44 50 20
$5,001 - $6,000 173 99 32 31 11
$6,001 - $7,000 108 55 15 32 6
$7,001 - $8,000 65 32 10 18 5
$8,001 - $9,000 75 30 13 25 7
> $9,000 193 91 23 71 8
Total 1,220 684 194 273 69
**Option Selected
Unmodified - Beneficiary receives 50% of the member's allowance
Option 1 - Beneficiary receives lump sum of member's unused contributions
Option 2 - Beneficiary receives 100% of member's reduced monthly benefit
Option 3 - Beneficiary receives 75% of member's reduced monthly benefit
City of Fresno Fire and Police Retirement System l STATISTICAL
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 100
Schedule and Graph of Pension Benefit Payments
Deductions by Type
Last Ten Fiscal Years 2015 - 2024
(Dollars in Millions)
Service Retiree Benefits Disability Retiree Benefits Separation
Death Benefits Misc
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
$0
$10
$20
$30
$40
$50
$60
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Service Retiree Benefits $30.0 $30.3 $32.9 $33.7 $33.8 $36.3 $38.8 $41.3 $43.6 $50.9
Disability Retiree Benefits 23.7 25.1 25.9 28.8 31.3 30.7 30.9 33.5 36.8 38.3
Separation 0.9 1.1 0.5 0.6 0.9 0.2 1.3 0.4 0.6 1.0
Death Benefits —0.1 ————————
Misc ——————————
Total Benefit Deductions $54.6 $56.6 $59.3 $63.1 $66.0 $67.2 $71.0 $75.2 $81.0 $90.2
City of Fresno Fire and Police Retirement System l STATISTICAL
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 101
Schedule and Graph of Active Vested, Active Non-Vested and Deferred
Membership History
Last Ten Fiscal Years 2015 - 2024
ACTIVE VESTED ACTIVE NON-VESTED DEFERRED
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
0
200
400
600
800
1000
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
ACTIVE VESTED 925 899 863 808 795 805 845 856 878 843
ACTIVE NON-VESTED 72 152 221 330 331 291 240 280 325 383
DEFERRED 68 81 90 94 88 85 90 58 62 71
TOTAL 1,065 1,132 1,174 1,232 1,214 1,181 1,175 1,194 1,265 1,297
City of Fresno Fire and Police Retirement System l STATISTICAL
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 102
Schedule and Graph of Retirees Pension Benefit Payments
by Type of Benefit
Last Ten Fiscal Years 2015 - 2024
SERVICE RETIREMENTS SERVICE DISABILITY
NON-SERVICE DISABILITY SURVIVORS
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
0
50
100
150
200
250
300
350
400
450
500
550
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
SERVICE RETIREMENTS 453 452 468 463 458 475 485 505 518 548
SERVICE DISABILITY 371 376 401 426 440 446 456 460 483 491
NON-SERVICE DISABILITY 5 5 5 4 5 3 4 5 5 5
SURVIVORS 169 168 168 169 176 182 180 184 181 176
TOTAL 998 1,001 1,042 1,062 1,079 1,106 1,125 1,154 1,187 1,220
City of Fresno Fire and Police Retirement System l STATISTICAL
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 103
Summary of Active Participants
NUMBER OF PENSIONABLE ANNUAL NET CHANGE IN
YEAR MEMBERS PAYROLL AVERAGE SALARY AVERAGE SALARY
2024 1,226 $145,668,744 $118,816 6.47%
2023 1,203 $134,251,602 $111,597 3.38%
2022 1,136 $122,633,655 $107,952 1.55%
2021 1,085 $115,341,276 $106,305 2.34%
2020 1,096 $113,842,558 $103,871 6.52%
2019 1,126 $109,803,190 $97,516 6.77%
2018 1,138 $103,934,234 $91,331 1.68%
2017 1,084 $97,368,618 $89,823 1.48%
2016 1,051 $93,030,822 $88,516 (3.10)%
2015 997 $91,075,093 $91,349 (0.39)%
Summary of Retirees
ANNUAL NET CHANGE
ANNUAL AVERAGE IN BENEFITS
NUMBER BENEFITS TO ALLOWANCE TO
YEAR OF RETIREES PARTICIPANTS (INDIVIDUAL)PARTICIPANTS
2024 1,220 $89,195,842 $73,111 8.05%
2023 1,187 $80,314,864 $67,662 4.37%
2022 1,154 $74,809,611 $64,826 4.62%
2021 1,125 $69,707,525 $61,962 2.31%
2020 1,106 $66,983,928 $60,564 0.36%
2019 1,079 $65,113,142 $60,346 2.52%
2018 1,062 $62,510,828 $58,861 4.40%
2017 1,042 $58,748,302 $56,380 1.86%
2016 1,001 $55,408,165 $55,353 2.85%
2015 998 $53,711,161 $53,819 (0.60%)
City of Fresno Fire and Police Retirement System l STATISTICAL
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 104
Member and City Contribution Rates
Last Ten Fiscal Years 2015 - 2024
TIER I
As of June 30
Member Rates City Contribution Rates
Basic at Entry Age
Total
City
Less
Prefunded Actuarial
Accrued Liability
Net City
Contribution
Fiscal Year Valuation Date 20 30 40 Rate (PAAL)Rate
2024 2022 5.01%8.79%8.09%25.51%(4.43%)21.08%
2023 2021 4.68%8.34%7.71%25.45%(5.11%)20.34%
2022 2020 4.68%8.34%7.71%25.39%(2.83%)22.56%
2021 2019 4.68%8.34%7.71%25.94%(3.12%)22.82%
2020 2018 4.34%7.84%7.30%23.53%(3.94%)19.59%
2019 2017 4.34%7.84%7.30%23.44%(4.72%)18.72%
2018 2016 4.34%7.84%7.30%28.38%(9.46%)18.92%
2017 2015 4.52%7.75%6.94%29.59%(10.57%)19.02%
2016 2014 4.52%7.75%6.94%26.88%(6.74%)20.14%
2015 2013 4.52%7.75%6.94%27.80%(6.97%)20.83%
TIER II
As of June 30
Member Rates City Contribution Rates
Basic at Entry Age
Total
City
Less
Prefunded Actuarial
Accrued Liability
Net City
Contribution
Fiscal Year Valuation Date 20 30 40 Rate (PAAL)Rate
2024 2022 9.00%9.00%9.00%25.51%(4.43%)21.08%
2023 2021 9.00%9.00%9.00%25.45%(5.11%)20.34%
2022 2020 9.00%9.00%9.00%25.39%(2.83%)22.56%
2021 2019 9.00%9.00%9.00%25.94%(3.12%)22.82%
2020 2018 9.00%9.00%9.00%23.53%(3.94%)19.59%
2019 2017 9.00%9.00%9.00%23.44%(4.72%)18.72%
2018 2016 9.00%9.00%9.00%23.15%(4.23%)18.92%
2017 2015 9.00%9.00%9.00%22.24%(3.22%)19.02%
2016 2014 9.00%9.00%9.00%22.07%(1.93%)20.14%
2015 2013 9.00%9.00%9.00%22.09%(1.26%)20.83%
Data Source: Annual Actuarial Valuation Reports
City of Fresno Fire and Police Retirement System l STATISTICAL
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 105
Economic Assumptions and Funding Method
Last Ten Fiscal Years 2015 - 2024
Valuation Date Salary Cost-of-Living Inflation Funding
June 30 Interest Scale Adjustment (COLA)Component Method
2024 6.75%5.0% Avg 2.50 - 3.00%2.50%Entry Age Normal
2023 6.75%5.0% Avg 2.50 - 3.00%2.50%Entry Age Normal
2022 6.75%5.5% Avg 2.50 - 3.00%2.50%Entry Age Normal
2021 7.00%5.25% Avg 2.75 - 3.25%2.75%Entry Age Normal
2020 7.00%5.25% Avg 2.75 - 3.25%2.75%Entry Age Normal
2019 7.00%5.25% Avg 2.75 - 3.25%2.75%Entry Age Normal
2018 7.25%5.5% Avg 3.00 - 3.50%3.00%Entry Age Normal
2017 7.25%5.5% Avg 3.00 - 3.50%3.00%Entry Age Normal
2016 7.25%5.5% Avg 3.00 - 3.75%3.00%Entry Age Normal
2015 7.50%5.5% Avg 3.00 - 3.75%3.25%Entry Age Normal
Source: The Segal Company June 30, 2024, Actuarial Valuation Report
City of Fresno Fire and Police Retirement System l STATISTICAL
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 106
Benefits and Withdrawals Paid
Last Ten Fiscal Years 2015 - 2024
(In Thousands)
BENEFITS PRSB WITHDRAWALS
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
$0
$10000
$20000
$30000
$40000
$50000
$60000
$70000
$80000
$90000
$100000
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
BENEFITS $53,471 $54,428 $57,029 $60,492 $62,991 $65,020 $68,027 $72,785 $77,662 $86,681
PRSB 241 980 1,719 2,019 2,122 1,964 1,680 2,024 2,653 2,515
WITHDRAWALS 901 1,173 525 560 849 218 1,255 369 622 1,023
TOTAL $54,613 $56,581 $59,273 $63,071 $65,962 $67,202 $70,962 $75,178 $80,937 $90,219
City of Fresno Fire and Police Retirement System l STATISTICAL
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 107
Average Monthly Benefits to Retirees
Last Ten Fiscal Years 2015 - 2024
(In Thousands)
Average Monthly Benefit Average Monthly PRSB
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
$0
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
$5000
$5500
$6000
$6500
Average Monthly 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Benefit $4,465 $4,531 $4,561 $4,747 $4,865 $4,899 $5,039 $5,256 $5,452 $5,921
PRSB 20 82 138 158 164 148 124 146 186 172
Average Monthly Benefit Total $4,485 $4,613 $4,699 $4,905 $5,029 $5,047 $5,163 $5,402 $5,638 $6,093
City of Fresno Fire and Police Retirement System l STATISTICAL
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 108
EXPECTATION OF LIFE
(Age and Service Retirees)
Years of Age
Male Female
25 30 35 40 45 50 55 60 65 70
$.00
$.25
$.50
$.75
$1.00
Separation Rate Before Retirement
Due to Death*
Rate %
Tier I & II
Age Male Female
25 0.04 0.02
30 0.04 0.03
35 0.05 0.04
40 0.06 0.05
45 0.08 0.07
50 0.12 0.09
55 0.18 0.12
60 0.26 0.17
65 0.41 0.23
70 0.77 0.45
*All pre-retirement deaths are presumed to be duty
EXPECTATION OF LIFE
(Disabled Retirees)
Years of Age
Tier I Duty Tier I Non-Duty
Tier II Duty Tier II Non-Duty
20 25 30 35 40 45 50 55 60
.00
5.00
10.00
15.00 Separation Rates Prior to Retirement
Due to Disability
Rate %
Age
Tier I
Duty
Tier I
Non-
Duty
Tier II
Duty
Tier II
Non-
Duty
20 0.02 0.00 0.06 0.00
25 0.14 0.01 0.10 0.01
30 0.26 0.01 0.40 0.01
35 0.39 0.03 0.72 0.03
40 0.60 0.12 1.04 0.14
45 0.88 0.25 1.20 0.23
50 2.80 0.20 1.32 0.16
55 8.20 0.00 3.86 0.00
60 0.00 0.00 11.38 0.00
City of Fresno Fire and Police Retirement System l STATISTICAL
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 109
To attract, develop and
retain competent and
professional staff.
To achieve and
maintain superior
investment
performance on a risk
controlled basis
measured by the
Public Fund Universe.
COMPLIANCE
111 Independent Auditor’s Report on Internal Control Over
Financial Reporting and On Compliance and Other Matters
Based on an Audit of Financial Statements Performed in
Accordance with Government Auditing Standards
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 110
Independent Auditor’s Internal Control Letter
City of Fresno Fire and Police Retirement System l COMPLIANCE
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 111
Independent Auditor’s Internal Control Letter Continued
City of Fresno Fire and Police Retirement System l COMPLIANCE
Annual Comprehensive Financial Report For Fiscal Years Ended June 30, 2024 and 2023 112
City of Fresno
Staff Report
2600 Fresno Street
Fresno, CA 93721
www.fresno.gov
File #:ID 25-108 Agenda Date:1/30/2025 Agenda #:2.-Y.
REPORT TO THE CITY COUNCIL
FROM:GREGORY A. BARFIELD, M.A., Director
Department of Transportation
BY:LINDA TAYLOR, Administrative Manager
Department of Transportation
SHARLEE FLORES, Senior Management Analyst
Department of Transportation
SUBJECT
Reject all bids of a three-year base contract, with options for two one-year extensions, for the
purchase Radial Tire Leasing Services (Bid File 12500030).
RECOMMENDATION
Staff recommends that Council reject all bids of a three-year base contract, with options for two one-
year extensions, for the purchase Radial Tire Leasing Services (Bid File 12500030).
EXECUTIVE SUMMARY
To support fleet operations and provide safe, reliable service to passengers, the Department of
Transportation/Fresno Area Express (FAX) sought to establish a contract with a tire supplier for the
leasing of transit radial tires, as well as tire maintenance services for the fixed-route bus fleet. An
Invitation for Bid (IFB) solicitation was prepared and advertised to perspective bidders on October 4,
2024. Copies of the specifications were requested and distributed to eight (8) prospective bidders.
One (1) sealed response was received and opened on November 26, 2024. Bridgestone American
Tire Operations, LLC (Bridgestone), submitted the only bid at a total price of $2,999,954.71. Upon
review of the submission, the bid was deemed non-responsive due to a technical issue with bid
package and must therefore be rejected.
BACKGROUND
FAX operates a fixed-route bus fleet of 138 heavy-duty compressed natural gas (CNG) and battery
electric buses (BEBs), which provide 363 days of transit service to the residents of the City and
County of Fresno each year, accruing over 34,000,000 vehicle miles. Having an effective tire
maintenance and replacement program is critical to ensuring bus safety and reliability. It is also a
large cost component of bus maintenance; therefore, FAX follows the industry practice of leasing
from a qualified tire supplier. The lease structure is based on the aggregate mileage accrued by the
City of Fresno Printed on 2/7/2025Page 1 of 2
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1-30-2025
MA/AP 6-0
DISTRICT 5 (VACANT) ABSENT
APPROVED ON CONSENT
File #:ID 25-108 Agenda Date:1/30/2025 Agenda #:2.-Y.
from a qualified tire supplier.The lease structure is based on the aggregate mileage accrued by the
fleet, and a multi-year contract is used to provide continuity of service and quality.
To support fleet operations and provide safe,reliable service to passengers,FAX sought to establish
a contract with a tire supplier for the leasing of transit radial tires,as well as tire maintenance
services for the fixed-route bus fleet.A multi-year requirements contract was determined to be the
most cost effective and efficient way to acquire these products and associated services.
The IFB solicitation was prepared and advertised to perspective bidders on October 4,2024.Copies
of the specifications were requested and distributed to eight (8)prospective bidders.One (1)sealed
response was received and opened on November 26,2024.Bridgestone American Tire Operations,
LLC (Bridgestone),submitted the only bid at a total price of $2,999,954.71.Upon review of the
submission,the bid was deemed non-responsive due to a technical issue with the bid package and
must therefore be rejected.
ENVIRONMENTAL FINDINGS
By the definition provided in the California Environmental Quality Act (CEQA)Guidelines Section
15378 the approval of this item does not qualify as a project as defined by the CEQA requirements.
LOCAL PREFERENCE
Local preference is not applicable because this action is to reject all bids.
FISCAL IMPACT
There is no fiscal impact to the General Fund from this action because a contract is not being
awarded.
Attachment:
Bid Evaluation Form
City of Fresno Printed on 2/7/2025Page 2 of 2
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City of Fresno
Staff Report
2600 Fresno Street
Fresno, CA 93721
www.fresno.gov
File #:ID 25-103 Agenda Date:1/30/2025 Agenda #:
2.-Z.
APPOINTMENT
FROM: MIGUEL ARIAS, Council Vice President
District 3
SUBJECT
Approve the appointment of Navkaran Gurm to the Public Financing Authority of the Fresno
Enhanced Infrastructure Financing District for a term which serves at the pleasure of the
Councilmember.
Attachments: Appointment Packet
City of Fresno Printed on 2/5/2025Page 1 of 1
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1-30-2025
MA/AP 6-0
DISTRICT 5 (VACANT) ABSENT
APPROVED ON CONSENT
Miguel Arias
City Councilmember, District 3
NOTIFICATION OF APPOINTMENT
TO BOARD OR COMMISSION
TO:
BY:
_____
__X_
_____
Name:
Address:
Home Phone:
Appointed to:
Term:
Todd Stermer - City Clerk and Planning Department
Councilmember Miguel Arias
Reappointment
New Appointment
Name of person replaced:
Navkaran Gurm
Public Financing Authority of the Fresno Enhanced Infrastructure
Financing District
At the pleasure of the Councilmember
1/30/2025
Submit Date: Jan 07, 2025
Last Name
Home Address
City State Postal Code
City of Fresno Boards & Commissions
Application Form
Profile
Which Boards would you like to apply for?
Z. Public Financing Authority of the Fresno Enhanced Infrastructure Financing District:
Submitted
What district do you live in? *
District 7
Briefly explain why are you interested in serving on this board or
commission?
I'm interested in serving on the governing board of the Fresno EIFD because I am passionate
supporter of revitalizing Fresno’s downtown and Blackstone Avenue corridor. I recognize the
Enhanced Infrastructure Financing District as a pivotal tool for addressing our city's
infrastructure and community needs. As a young professional with a vested interest in
Fresno's future, I want to contribute to ensuring this investment fulfills its transformative
potential. My background in public policy and economics has taught me the critical
importance of smart infrastructure planning to foster economic growth, enhance
connectivity, and retain talent in our city. By serving on this board, I aim to lend my voice to
make Fresno a thriving hub for current and future generations.
Educational background, Schools Attended, Degrees and Certifications
UC Davis School of Law - J.D Candidate (2025); UCLA - Bachelors of Arts, Economics & Public
Affairs (2021)
Briefly explain your qualifications or areas of demonstrated expertise for this
board or commission.
My qualifications are rooted in extensive experience working with local government, making
me well-suited to contribute to the Fresno Enhanced Infrastructure Financing District. My
legal education and clerkships at law firms specializing in public agency and municipal law
have equipped me with experience in land use, housing laws, and infrastructure
development. Beyond my legal background, I completed a fellowship advocating for local
governments across California at the state level, where I analyzed legislation impacting
cities. My professional experiences and commitment to Fresno’s growth positions me to help
steer impactful investment strategies for our community through this board.
Nav Gurm
First Name
Email Address
Nav Gurm Page 1 of 2
Employer Job Title
Do you or an immediate family member have any professional or financial
relationship that may present a potential conflict of interest for this board,
commission or similar body?
Yes No
Work History
Work Address
City, State, Zip Code
Provide 3 Personal and Professional References. Provide name, address, and
phone number where they may be reached during the day.
Aida Macedo, Naindeep Singh Chann,Danielle Parra,
Five River Strategies Principal
Nav Gurm Page 2 of 2
City of Fresno
Staff Report
2600 Fresno Street
Fresno, CA 93721
www.fresno.gov
File #:ID 25-107 Agenda Date:1/30/2025 Agenda #:
2.-AA.
APPOINTMENT
FROM:MIKE KARBASSI, Council President
City Council, District 2
SUBJECT
Approve the reappointment of Stephen Avila to the Fresno Regional Workforce Development Board
(FRWDB) for a term ending November 1, 2026. Approve the appointment of James D. Martinez to
the Fresno Metropolitan Flood Control District Board for a term ending August 3, 2028. Approve the
re-appointment of Raquel Busani to the Fresno Metropolitan Flood Control District Board for a term
ending August 3, 2028.
Attachment:
·Stephen Avila - Appointment Packet
·James D. Martinez - Appointment Packet
·Raquel Busani - Appointment Packet
City of Fresno Printed on 2/5/2025Page 1 of 1
powered by Legistar™
1-30-2025
MA/AP 6-0
DISTRICT 5 (VACANT) ABSENT
APPROVED ON CONSENT
NOTIFICATION OF APPOINTMENT BY COUNCILMEMBER MIKE
KARBASSI TO BOARD OR COMMISSION
TO: City Council
THROUGH: Todd Stermer, City Clerk
BY: Mike Karbassi, Councilmember District 2
X Reappointment
New Appointment
Name of person replaced: N/A
Name: Stephen Avila
Address:
Phone:
Appointed to: Fresno Regional Workforce Development Board
Term: Through November 1, 2026
City Council Agenda 01/30/2025
Page 1 of 7
FRESNO REGIONAL WORKFORCE DEVELOPMENT BOARD
APPLICATION FOR RE-APPOINTMENT
I.Applicant Information
Date:___________________________________
Name:____________________________________________________________
Home Address: ________________________________________
City/State/Zip: ___________________________________________
Phone: Email:
County Supervisorial District Number for Residential Address. (Please check one box)
{Please see http://www2.co.fresno.ca.us/2850/XMLLookup/IE6/Index.asp}
District 1 (Pacheco)
District 2 (Brandau)
District 3 (Quintero)
District 4 (Mendes)
District 5 (Magsig)
City Council District Number for Residential Address. (Please check one box)
{Please see http://www.fresno.gov/Government/CityCouncil/CouncilLocator.htm}
District 1 (Perea)
District 2 (Karbassi)
District 3 (Arias)
District 4 (Maxwell)
District 5 (Chavez)
District 6 (Bredefeld)
District 7 (Esparza)
Business/Organization Name:__________________________________________
Your Title:_________________________________________________________
Business Address: _________________________________
City/State/Zip: _________________________________________
Phone: ____________
Page 2 of 7
County Supervisorial District Number for Business Address (Please check one box)
District 1 (Pacheco)
District 2 (Brandau)
District 3 (Quintero)
District 4 (Mendes)
District 5 (Magsig)
City Council District Number for Business Address. (Please check one box)
District 1 (Perea)
District 2 (Karbassi)
District 3 (Arias)
District 4 (Maxwell)
District 5 (Chavez)
District 6 (Bredefeld)
District 7 (Esparza)
II.A ppointing Jurisdiction
I am seeking appointment by the City of Fresno
I am seeking appointment by the County of Fresno
Either
III.Status
I am seeking:
New Appointment; or,
Re-Appointment
If re-appointment, please list previous term, and who you were appointed by:_________________
________________________________________________________________________________
________________________________________________________________________________
Page 3 of 7
IV.TYPE OF POSITION FOR WHICH YOU ARE APPLYING
A.Private Sector/Business Appointments
Are you an “owner of a business, chief executive or operating officer of a business,
or a business executive or employer with optimum policymaking or hiring
authority?”
(WIOA, Sec. 107, (b) membership, (2) Composition, (A), (i).}
YES NO
Please describe your policy-making or hiring authority: _____________________________
__________________________________________________________________________
__________________________________________________________________________
Do you “represent a business, including small businesses, or an organization
representing businesses, that provides employment opportunities that, at a
minimum, include high-quality, work-relevant training and development in in-
demand industry sectors or occupations in our local area?”
{WIOA, Sec. 107, (b) membership, (2) Composition, (A), (ii)},
YES NO
How many workers does your business/organization employ? ________________________
B.Non Private Sector Appointments
(Check the box that represents the category for which you are seeking appointment.)
1.Mandated Membership Categories
Labor Representative
“Each local board …shall include representatives of labor organizations (for a
local area in which employees are represented by labor organizations), who
have been nominated by local labor federations, or (for a local area in which
no employees are represented by such organizations) other representatives
of employees”
{WIOA, Sec. 107, (b) membership, (2) Composition, (B), (i).}, (underline added)
Page 4 of 7
Joint Labor-Management Apprenticeship Program
“Each local board …shall include representatives, who shall be a member of
a labor organization or a training director, from a joint labor-management
apprenticeship program, or if no such joint program exists in the area, such
a representative of an apprenticeship program in the area, if such a program
exists”
{WIOA, Sec. 107, (b) membership, (2) Composition, (B), (ii).}, (underline added)
Literacy Activities
“Each local board …shall include a representative of eligible providers
administering adult education and literacy activities under title II.”
{WIOA, Sec. 107, (b) membership, (2) Composition, (C), (i).}, (underline added)
Higher Education
“Each local board …shall include a representative of institutions of higher
education providing workforce investment activities (including community
colleges)
{WIOA, Sec. 107, (b) membership, (2) Composition, (C), (ii).}, (underline added)
Economic/Community Development
“Each local board …shall include a representative of economic and
community development entities”
{WIOA, Sec. 107, (b) membership, (2) Composition, (D), (i).}, (underline added)
State Employment Service
“Each local board …shall include an appropriate representative from the State
employment service office under the Wagner-Peyser Act (29 U.S.C. 49 et
seq.) serving the local area”
{WIOA, Sec. 107, (b) membership, (2) Composition, (D), (ii).}, (underline added)
Rehabilitation Act
“Each local board… shall include an appropriate representative of the
programs carried out under title I of the Rehabilitation Act of 1973 (29 U.S.C.
720 et seq.), other than section 112 or Part C of that title (29 U.S.C. 732,
741), serving the local area”
{WIOA, Sec. 107, (b) membership, (2) Composition, (D), (iii).}, (underline added)
Page 5 of 7
2.Discretionary Membership Categories
Adult Serving Employment Organizations
“Each local board …may include representatives of community-based
organizations that have demonstrated experience and expertise in
addressing the employment needs of individuals with barriers to
employment, including organizations that serve veterans or that provide or
support competitive integrated employment for individuals with disabilities”
{WIOA, Sec. 107, (b) membership, (2) Composition, (B), (iii).}, (underline added)
Youth Serving Organizations
“Each local board …may include representatives of organizations that have
demonstrated experience and expertise in addressing the employment,
training, or education needs of eligible youth, including representatives of
organizations that serve out-of-school youth”
{WIOA, Sec. 107, (b) membership, (2) Composition, (B), (iv).}, (underline added)
Community Based Organizations
“Each local board …may include representatives of local educational
agencies, and of community-based organizations with demonstrated
experience and expertise in addressing the education or training needs of
individuals with barriers to employment”
{WIOA, Sec. 107, (b) membership, (2) Composition, (C), (iii).}, (underline added)
Transportation/Housing/Public Assistance Agencies
“Each local board …may include representatives of agencies or entities
administering programs serving the local area relating to transportation,
housing, and public assistance”
{WIOA, Sec. 107, (b) membership, (2) Composition, (D), (iv).}, (underline added)
Philanthropic Organizations
“Each local board …may include representatives of philanthropic
organizations serving the local area”
{WIOA, Sec. 107, (b) membership, (2) Composition, (D), (v).}, (underline added)
Other Appropriate Entities
“Each local board …may include such other individuals or representatives of
entities as the chief elected official in the local area may determine to be
appropriate”
{WIOA, Sec. 107, (b) membership, (2) Composition, (E)}, (underline added)
Page 6 of 7
V.Applicant Background
A.Educational Background, including schools attended, degrees attained and certifications
achieved:
_____________________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
B.List past or present City and/or County appointments, elected positions held as well as other
professional and community affiliations:
_____________________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
C.Briefly explain why you are interested in serving on the Fresno Regional Workforce
Development Board:
_____________________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
D.What experience or Special Knowledge can you bring to the Fresno Regional Workforce
Development Board? Please list occupational experience if applicable:
_____________________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
E.List any affiliations you or your spouse has with any public agency:
_____________________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
F.Please list any affiliations you or your spouse has with any organization receiving funding from
the Fresno Regional Workforce Development Board:
_____________________________________________________________________________
Page 7 of 7
_____________________________________________________________________________
_____________________________________________________________________________
G.Do you or an immediate family member have any professional or financial relationship that
may present a potential conflict of interest for this board? :
YES NO
H.Do you, or the company or organization you represent, intend to apply for funds administered
by the Fresno Regional Workforce Development Board? :
YES NO
VI.REFERENCES
Please provide three personal or professional references (Include name, address and telephone number)
Reference #1:
________________________________________
________________________________________________________________________________
Reference #2:
_______________________________________
________________________________________________________________________________
Reference #3:
_______________________
________________________________________________________________________________
VII.Attestation
I have read the Fresno County Board of Supervisor's Administrative Policy No. 35
(Attachment A), the City of Fresno Conflict of Interest Policy (Attachment B ) and the
Fresno Regional Workforce Development Board Conflict of Interest Policy
(Attachment C ) for Board appointees and agree to abide by the policies and
procedures at all times while an appointed member of the F RWDB. At present, to the
best of my knowledge, no conflict of interest exists in my servi ng on this Board.
Signature: __________________________________________________________
Date: _______________________________________________________________
NOTIFICATION OF APPOINTMENT BY COUNCILMEMBER MIKE
KARBASSI TO BOARD OR COMMISSION
TO:
THROUGH:
BY:
Name:
Address:
Phone:
James D. Martinez
Appointed to: Fresno Metropolitan Flood Control District Board
Term: Through August 3, 2028
City Council
Todd Stermer, City Clerk
Mike Karbassi, Councilmember District 2
Reappointment
New Appointment
Name of person replaced: Lawrence Garcia
City Council Agenda 01/30/2025
X
Submit Date: Jan 15, 2025
First Name Middle
Initial
Last Name
Home Address
City State Postal Code
City of Fresno Boards & Commissions
Application Form
Profile
Which Boards would you like to apply for?
Fresno Metropolitan Flood Control District (FMFCD): Submitted
What district do you live in? *
District 1
Briefly explain why are you interested in serving on this board or
commission?
As a lifelong Fresno resident and former trustee of the Fresno County Board of Education, I
have dedicated my public service career to improving the well-being of our community,
particularly through education, equity, and expanded opportunities for students. My interest
in serving on this board stems from a deep commitment to addressing critical infrastructure
issues like flood control, which directly impact the safety and long-term health of Fresno’s
neighborhoods, schools, and families. With my experience in governance and understanding
of local needs, I’m eager to contribute to sustainable solutions that impact our community.
Educational background, Schools Attended, Degrees and Certifications
Fresno City College (August 2004-2007) California State University, Fresno - Bachelor of Arts
in Political Science (August 2007 - June 2010) University of Southern California - Master of
Arts in Communication Management (June 2016- May 2018)
Briefly explain your qualifications or areas of demonstrated expertise for this
board or commission.
With years of experience in government, education, and community service, I bring a well-
rounded perspective and a proven record of leadership. As a former trustee and past
president of the Fresno County Board of Education, I led initiatives focused on mental
wellness, early education, and career pathways—critical areas that required effective
collaboration, thoughtful policymaking, and strategic oversight. Growing up in Fresno and
experiencing firsthand the challenges our community faces has deepened my commitment
to equitable solutions. My background, combined with my experience working across various
sectors, has equipped me with the expertise and dedication needed to serve this board
effectively.
James D Martinez
Email Address
Fresno CA
James D Martinez Page 1 of 2
Employer Job Title
Do you or an immediate family member have any professional or financial
relationship that may present a potential conflict of interest for this board,
commission or similar body?
Yes No
Work History
Work Address
City, State, Zip Code
Fresno, CA
Provide 3 Personal and Professional References. Provide name, address, and
phone number where they may be reached during the day.
Linda Hayes, Address: , Phone: Melissa Blake, Address: ,
Phone: Kacey Auston-Tibbetts: Address: Phone:
Question applies to multiple boards
I declare under penalty of perjury the above information is true and correct.
Yes No
Associated Students Inc.Director of Operations
James D Martinez Page 2 of 2
NOTIFICATION OF APPOINTMENT BY COUNCILMEMBER MIKE
KARBASSI TO BOARD OR COMMISSION
TO: City Council
THROUGH: Todd Stermer, City Clerk
BY: Mike Karbassi, Councilmember District 2
X Reappointment
New Appointment
Name of person replaced: N/A
Name: Raquel Busani
Address:
Phone:
Appointed to: Fresno Metropolitan Flood Control District
Term: Through August 3, 2028
City Council Agenda 01/30/2025
City of Fresno
Staff Report
2600 Fresno Street
Fresno, CA 93721
www.fresno.gov
File #:ID 25-81 Agenda Date:1/30/2025 Agenda #:
2.-BB.
APPOINTMENT
FROM:MIKE KARBASSI, Councilmember
COUNCIL DISTRICT 2
SUBJECT
Approve the appointment of James Poptanich to the Fresno-Madera Area Agency on Aging Board for
a term ending January 4, 2027.
Attachment:
Appointment Packet for Poptanich
City of Fresno Printed on 2/5/2025Page 1 of 1
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1-30-2025
MA/AP 6-0
DISTRICT 5 (VACANT) ABSENT
APPROVED ON CONSENT
NOTIFICATION OF APPOINTMENT BY COUNCILMEMBER MIKE
KARBASSI TO FRESNO MADERA AREA AGENCY ON AGING BOARD
TO:
THROUGH:
BY:
X
Name:
Address:
Phone:
Appointed to:
Term:
City Council
Todd Stermer, City Clerk
Mike Karbassi, Councilmember District 2
Reappointment
New Appointment
Name of person replaced: N/A
James Poptanich
Fresno Madera Area Agency on Aging Board
Through January 4, 2027
City Council Agenda 01/30/2025
Submit Date: Dec 20, 2024
Last Name
Home Address
City State Postal Code
City of Fresno Boards & Commissions
Application Form
Profile
Which Boards would you like to apply for?
Fresno Madera Area Agency on Aging Board (FMAAA): Submitted
What district do you live in? *
District 2
Briefly explain why are you interested in serving on this board or
commission?
I first came to Fresno in 1970 to attend Fresno State College, by the time I had graduated in
1974 it was California State University, Fresno and I had fallen in love with the City of Fresno
and the surrounding area. I worked 25 years for the Department of Treasury. My final years
were working for the National Taxpayer Advocate in Washington DC writing for the Annual
Report to Congress. I have served the City of Fresno in a volunteer capacity since 2001. After
I retired in 2005 I expanded to leadership positions in various volunteer organizations and
have helped to lead them along toward achieving their missions and goals. I am now the
Chair of the Citizens Review Panel which reviews the spending of Measure B funds through
the Fresno County Public Library system. I am now the Chair of the Fresno Madera Area
Agency on Aging Governing Board to make sure that the older citizens of our area are
treated with respect and that they have an advocate looking out for their needs and
benefits. I am on the Kaiser Permanente Patient and Family Advisory Council as well as the
Senior Patient Advisory Council. I served on the Police Chiefs Advisory Board for over 11
years. I was on Mayor Swearengin's Advisory Panel and watched budget issues through all of
the lean years. I feel I will be able to continue to contribute to the benefit of the City of
Fresno.
Educational background, Schools Attended, Degrees and Certifications
Schools Attended: California State University, Fresno B.S. in Business, 1974 California State
University, Fresno Graduate Business courses Internal Revenue Service Trained as Facilitator
Department of the Treasury Trained as EEO Counselor Employer: Retired from Department of
the Treasury / Internal Revenue Service Title: Retired Field Advocacy Analyst for The National
Taxpayer Advocate Length of Employment: December of 1982 to May of 2005.
James Poptanich
First Name
Email Address
James Poptanich Page 1 of 2
Employer Job Title
Briefly explain your qualifications or areas of demonstrated expertise for this
board or commission.
I have served on this Governing Board for the last seven years. I will be Chair for 2025 but
need to be renewed as the City representative.
Do you or an immediate family member have any professional or financial
relationship that may present a potential conflict of interest for this board,
commission or similar body?
Yes No
Work History
Work Address
City, State, Zip Code
Provide 3 Personal and Professional References. Provide name, address, and
phone number where they may be reached during the day.
Jerry Dyer, Police Chief - City of Fresno / Steve Brandau, Supervisor District 2 - County of
Fresno / Hall of Records, Mike Karbassi, Council member District 2 - City of Fresno
Question applies to multiple boards
I declare under penalty of perjury the above information is true and correct.
Yes No
Retired Volunteer
James Poptanich Page 2 of 2
City of Fresno
Staff Report
2600 Fresno Street
Fresno, CA 93721
www.fresno.gov
File #:ID 25-167 Agenda Date:1/30/2025 Agenda #:
2.-CC.
REPORT TO THE CITY COUNCIL
FROM:ANNALISA PEREA, Councilmember
District One
MIKE KARBASSI, Council President
District Two
NICK RICHARDSON, Councilmember
District Six
SUBJECT
Bill - (For Introduction) Adding Chapter 10 of Article 27 of the Fresno Municipal Code, Relating to the
Anti Human Transportation and Abandonment Ordinance
Attachment: Ordinance
City of Fresno Printed on 2/7/2025Page 1 of 1
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1-30-2025
MA/AP 6-0
DISTRICT 5 (VACANT) ABSENT
CORRECTED ON DAIS
APPROVED ON CONSENT
BILL B-3, NEW FILE ID: 25-198
1 of 4
Date Adopted:
Date Approved
Effective Date:
City Attorney Approval: ________ Ordinance No.
BILL NO.
ORDINANCE NO.
AN ORDINANCE OF THE CITY OF FRESNO, CALIFORNIA,
ADDING CHAPTER 10 OF ARTICLE 27 OF THE FRESNO
MUNICIPAL CODE, RELATING TO THE ANTI HUMAN
TRANSPORTATION AND ABANDONMENT ORDINANCE
THE COUNCIL OF THE CITY OF FRESNO DOES ORDAIN AS FOLLOWS:
SECTION 1. Article 27 is hereby added to Chapter 10 of the Fresno Municipal Code to
read:
ARTICLE 27
PROHIBITION OF GOVERNMENT-SPONSORED
TRANSPORT OF HOMELESS PERSONS
SECTION 10-2701. – PURPOSE AND INTENT. The purpose of this Article is to help
preserve the City’s limited-homelessness-related resources for the benefit of individuals,
residing in the City of Fresno; and to encourage the appropriate government agencies to
provide shelter, care and outreach and other homelessness-related resources to the
person experiencing homelessness within their jurisdictions, rather than transporting
individuals to the City of Fresno.
SECTION 10-2702. – PROHIBITION OF GOVERNMENT-SPONSORED
UNSANCTIONED TRANSPORT OF HOMELESS PERSONS
(a)No law enforcement officer, agent or employee of a county,
city, or any other governmental entity, when acting in their official capacity
or using government property, shall transport and drop-off an individual on
public property, or private property that is accessible to the public, within the
2 of 4
City of Fresno, when the person being transported and dropped-off lacks a
fixed, regular or adequate residence.
(b) A person “lacks a fixed, regular or adequate residence” when
the meaning of subdivision (a) above when that person:
(1) Has a primary residence that is a public or private place
not meant for habitation; or
(2) Lives in a publicly or privately operated shelter
designated to provide temporary living arrangements (including
congregate shelters, transitional housing, hotels, and motels paid for
by charitable organizations or by federal, state or local government
programs); or
(3) Is exiting an institution where they have resided for 90
days or less and who resided in an emergency shelter or place not
meant for human habitation immediately before entering that
institution.
(c) The prohibition contained in subdivision (a) above shall not be
interpreted to prohibit the following authorized activities:
(1) Transporting a person to be booked into a County Jail
or admitted to a County-designated custody alternative facility; or
(2) Transporting a person to be treated at a hospital or
other medical facility; or
3 of 4
(3) Transporting a person to reside at a shelter, temporary
housing, or permanent housing, when the officer, agent or employee
has independently verified that the individual being transported has
already been accepted to reside at the facility; or
(4) Transporting a person to attend a verified appointment
with a governmental or non-profit social service provider; or
(5) Transporting a person to attend a verified hearing at a
federal or state court; or
(6) Any transportation or drop-off activities undertaken by
the City of Fresno within the City of Fresno; or
(7) The operations of a governmental provider of public
transportation, such as the Fresno Transit System.
SECTION 10-2703 – PENALTY. A violation of Section 10-2702 (a) is a misdemeanor
and upon conviction punishable by a fine of not exceeding one thousand dollars ($1,000)
or by imprisonment for a term not exceeding six months or by both fine and imprisonment.
SECTION 2. This ordinance shall become effective and in full force and effect at 12:01
a.m. on the thirty-first day after its final passage.
4 of 4
* * * * * * * * * * * * * *
STATE OF CALIFORNIA )
COUNTY OF FRESNO ) ss.
CITY OF FRESNO )
I, TODD STERMER, City Clerk of the City of Fresno, certify that the foregoing
ordinance was adopted by the Council of the City of Fresno, at a regular meeting held on
the day of 2025.
AYES :
NOES :
ABSENT :
ABSTAIN :
Mayor Approval: , 2025
Mayor Approval/No Return: , 2025
Mayor Veto: , 2025
Council Override Vote: , 2025
TODD STERMER, CMC
City Clerk
By:
Deputy Date
APPROVED AS TO FORM:
ANDREW JANZ
City Attorney
By:
Angela M. Karst Date
Senior Deputy City Attorney
From:
To:
Subject:FW: Public comment, item 2-CC
Date:Wednesday, January 29, 2025 9:21:47 AM
Mary Quinn
Senior Deputy City Clerk
Office of the City Clerk
From: Brandi Nuse-Villegas
Sent: Wednesday, January 29, 2025 8:58 AM
To: Clerk <Clerk@fresno.gov>
Subject: Public comment, item 2-CC
External Email: Use caution with links and attachments
Cities should work on solutions to meet the housing needs of those who are unhoused, as the lack of
affordable housing is the number one reason for homelessness in California and throughout the
nation, according to multiple studies (in California, the recent UCSF and Stanford studies).
Displacement is not a solution and shouldn’t be conducted by municipalities. However, I want to
note that this bill gives the impression of assumption or may create or bolster an assumption within
the public that the reason for the numbers of those who are unsheltered is, in part at least, those who
have been brought in from other places. Rather, the issue continues to concern causes of being
unsheltered and the challenges of getting permanent housing again. Reports (UCSF and Stanford) on
Fresno show that the increase in homelessness coincides with challenges and hardships that those in
Fresno have faced: a sharp increase in rent ($500 in average between 2018-23), a 9,000 housing unit
lack from extremely low to moderate income housing according to the California HCD and the 2023
Fresno Housing Element Report. The 2022 Point in Time Count shows that 18% of those who
responded were survivors of domestic violence and I know multiple survivors who are struggling to
get into shelters (the Marjaree Mason has been full multiple times that I have taken someone and
other have reported the same, thus the need for more beds) and to get into permanent housing. Many
are elderly or disabled and are on fixed incomes and have lost housing due to changes in support
systems or unaffordable rent. While the majority of those surveyed by the PIT are not dealing with
substance abuse, those who have sought it out are on waiting lists to get in, but those who do going
into treatment programs are still exited out back onto the streets, as are many who go to the shelters
and timed out. (there is a 85 year old woman currently facing having to leave the shelters). We need
to pursue the Housing Element focus of Housing First and focus on decreasing the number of those
who are unsheltered by meeting the housing needs of our community per the HCD requirements.
As well, I think it's important to note that the MAPS program does have a service where they help
people in Fresno with the costs of transportation to be reunited with family members in other cities
(upon verifying the family member and the permanent housing). I hope in cases like these in which
someone has family that this bill would not create a barrier to reunification.
City of Fresno
Staff Report
2600 Fresno Street
Fresno, CA 93721
www.fresno.gov
File #:ID 25-165 Agenda Date:1/30/2025 Agenda #:
2.-DD.
REPORT TO THE CITY COUNCIL
FROM:MIKE KARBASSI, Council President
District Two
SUBJECT
Council Boards and Commissions Communications, Reports, Assignments and/or Appointments,
Reappointments, Removals to/from City and non-City Boards and Commissions.
Attachment:
List of boards with proposed changes (redlined).
City of Fresno Printed on 2/7/2025Page 1 of 1
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DISTRICT 5 (VACANT) ABSENT
APPROVED ON CONSENT
COMMITTEE CURRENT MEMBERS
(Councilmembers / Ex Officios Only)APPOINTMENT DATE TERM END
DATE TERM LENGTH APPOINTING AUTHORITY
Esparza - Member 1/19/2023 1/30/2025 Jan-25 Jan-27
White - Ex Officio (City Manager)N/A
Karbassi - Alternate 1/19/2023 1/30/2025 Jan-25 Jan-27
Esparza - Chair 1/19/2023 1/30/2025 Jan-25 Jan-27
VACANT - Vice-Chair (selected by Chair)1/19/2023 1/30/2025 Jan-25 Jan-27
Arias - Member (selected by Chair)1/19/2023 1/30/2025 Jan-25 Jan-27
Dyer - Ex Officio (Mayor)N/A
Arias Karbassi - Member 1/19/2023 1/30/2025 Jan-25 Jan-27
Arias - Member 1/19/2023 1/30/2025 Jan-25 Jan-27
Esparza - Chair 2/10/2022 1/30/2025 Jan-25 Jan-27
Maxwell - Vice Chair 1/19/2023 1/30/2025 Jan-25 Jan-27
Chavez Richardson - Member 2/1/2024 1/30/2025 Jan-26 Jan-27 Two years per Atricle V of FMAAA bylaws.
Maxwell - Member 2/1/2024 1/30/2025 N/A
Karbassi Perea 1st Alternate 2/1/2024 1/30/2025 N/A
Esparza - 2nd Alternate 1/19/2023 1/30/2025 N/A
Arias - Member 1/19/2019 1/30/2025 N/A
VACANT - Alternate (selected by Member)N/A
Esparza - Chair 1/19/2023 1/30/2025 Jan-25 Jan-27
Arias - Member (selected by Chair)2023 Jan-25
VACANT Member (selected by Chair)
Chavez Karbassi - Member 9/19/2019 1/30/2025 N/A
Buche - 1st Alt (Ex Officio - DPU Director)
VACANT - 2nd Alt (Ex Officio - DPU AD Water Div.)
Dejan Pavic - 3rd Alt. (Ex officio - DPU Projects
Administrator)
8 School Liaison Subcommittee
Two years per School Liaison Act Art IV (4). Reviewed
annually to replace departed members per section Art
IV(5) of School Liasion Act
Council President appoints Councilmember as Chairperson (School
Liasion Act Article IV). Chairperson appoints two additional
Councilmembers to serve. Vice Chair determined by subcommitee at
first regular meeting.
Upper Kings Basin Integrated
Regional Water Management
JPA
Until successor appointed per Article 3 of the Joint Power
Agreement.
Majority of Council appoints one Councilmember to serve (Joint Power
Agreement Article 3). 9
6 League of California Cities
(annual meeting)
Not listed - historically reviewed annually because the
voting delegation is for the League's Annual Conference.
Majority of Council appoints city official and up to two alternates
[League of Cities bylaws (2021) Article V, section 3(a)].
7
San Joaquin Valley Unified Air
Pollution Control District,
Special City Selection
Committee
Not specified.
Majority of Council appoints one Councilmember to serve (HSC
40600.5). The selected member shall delegate an alternate
Councilmember [HSC 40600.2(b)].
5 Fresno Madera Area Agency
on Aging
Majority of Council appoints one elected offfical from the City of Fresno
(Council Rule 25(a) and Article V of the FMAAA bylaws).
3 Fresno County Transportation
Authority (FCTA)
Two years for the Councilmember seat per for Public
Utilities Code 142052(a) (Measure "C" enabling legislation)
Majority of Council appoints a Councilmember to serve. The Mayor is
an Ex Officio member. required to serve as a member [Public Utilities
Code 142051(b)].
4 Fresno EIFD Public Financing
Authority
Two years and until successor is appointed per Reso 2020-
099.
Majority of Council appoint three Councilmembers to serve (Reso 2020-
84).
2 Finance and Audit Committee Two years per Reso 2019-110
Majority of Council appoints a Chairperson to serve. Chairerson
appoints two members including one to serve as Vice-Chair (Reso 2019-
069). Two year terms commence every odd number year (Reso 2007-
110 & 2019-110).
2025 COUNCILMEMBER BOARD AND COMMISSION APPOINTMENTS
PROPOSED JANUARY 30, 2025
1
Economic Development
Corporation Serving Fresno
County
Two years per Council Rule 25(a) Majority of Council appoints an elected offical to serve. The City
Manager is an Ex Officio member [Bylaws, Article 5, Section 5.01(3)].
City of Fresno
Staff Report
2600 Fresno Street
Fresno, CA 93721
www.fresno.gov
File #:ID 25-33 Agenda Date:1/30/2025 Agenda #:
3.-A.
REPORT TO THE CITY COUNCIL
FROM:NICHOLAS D. MASCIA, PE, Assistant City Manager
Interim Director - Capital Projects Department
BY:JOSHUA S. RHODES, PE, Assistant Director
Capital Projects Department, Construction Management Division
KELLY YOST, PE, Construction Manager
Capital Projects Department, Construction Management Division
SUBJECT
WORKSHOP - Community Workforce Agreement (Project Labor Agreement) Annual Review.
Attachments:
Presentation
Community Workforce Agreement
City of Fresno Printed on 2/7/2025Page 1 of 1
powered by Legistar™
1-30-2025
PRESENTED
Capital Projects DepartmentBUILDING A BETTER FRESNOCommunity Workforce Agreement Annual Review
Capital Projects DepartmentAnnual Workshop – Community Workforce AgreementTerm of Agreement•Fully executed on September 29,2021•Became effective 120 days later (January 27, 2022)•Initial 5-year term•Review of Local Hiring Program effectiveness at 2-year mark•Requires annual reports to the Council2
Capital Projects DepartmentAnnual Workshop – Community Workforce AgreementGoals of Agreement•Employment and training opportunities•Pathways into high-quality, sustainable construction careers•Create a pool of skilled construction labor•Combat unemployment and underemployment•Promote efficiency through skilled labor•Diversity, workforce equity, open opportunity•Recruitment, training and employment of local area residents•Local pre-apprenticeship and apprenticeship programs•Timely and successful completion of City projects3
Capital Projects DepartmentAnnual Workshop – Community Workforce AgreementKey Provisions•Applies to awarded construction contracts with Engineer’s Estimates of $1,000,000 and greater (with some exclusions)•Applies to work performed by craft workers, not products•Requires approval by the funding agency•Pre-job conferences and Joint Administrative Committee•Recognizes the Unions as sole bargaining representative•Union referrals of employees toContractors, with some ability for non-signatory Contractors to utilize Core Workers•Payments by employers to Union vacation, pension, health benefit funds•Apprentices•Local Hiring Program4
Capital Projects DepartmentAnnual Workshop – Community Workforce AgreementLocal Hiring Program•Unions agreed to exert their utmost efforts to achieve the goals•Contractors to demonstrate satisfaction of percentage goals, or demonstrate a good faith effort•Minimum 50% of journey-level project work hours by City of Fresno residents•Minimum 55% of apprentice-level project work hours by City of Fresno residents•Minimum 30% of apprentice-level project work hours performed by New Local Apprentices5
Capital Projects DepartmentAnnual Workshop – Community Workforce AgreementActive PLA Construction Contracts:•Fresno Area Express Facility Improvement Project (AMG & Associates, Inc.)•Fresno Street Corridor (A-C Electric)•Tulare Complete Streets (Agee Construction)•Blackstone Ave and McKinley Avenue Transit Oriented Development - Blackstone TOD (Emmett’s Excavation)•Barstow Ave Class IV Bikeway Project (American Paving)•Clean CA Downtown Neighborhood Beautification and Cleanup Project (Granite Construction)6
Capital Projects DepartmentAnnual Workshop – Community Workforce AgreementActive PLA Construction Contracts, continued:•Substation Expansion at the Regional Wastewater Reclamation Facility (A-C Electric Company)•Replacement and Repairs of Structural Components at the RWRF Headworks Building – Phase 1 (Ashron Construction)•Water Main Replacement Bounded by W. Clinton, W. University, N. Fruit, and N. Teilman Avenues (Dawson-Mauldin, LLC.)•Rebid Requirements Contract to Furnish and Install Polyethylene Water Service Replacements (West Valley Construction)7
Capital Projects DepartmentAnnual Workshop – Community Workforce AgreementCompleted PLA Construction Contracts as of August 23, 2024:•Van Ness and Weldon Pocket Park (Bush Construction)•Sewer Rehab Improvements – Area bound by Blackstone, Maroa, McKinley, and Clinton Ave (Emmett’s Excavation)•Cleaning of Digester #1 and Cleaning/Rehabilitation of Digester #12 at the RWRF (F.D. Thomas)•Water Main Replacement in Calwa Townsite, Phase 1 (West Valley Construction)•Water Main Replacement along E Jensen Ave between S Clovis and S Fowler Avenues (Emmett’s Excavation)8
Capital Projects DepartmentAnnual Workshop – Community Workforce AgreementLocal Hire Program Statistics – Since Inception of PLAJanuary 27, 2022 to January 31, 2024Total PLA Contracts Awarded 26Completed PLA Contracts 5Full Time EquivalentTotal PLA Current Contract Amount$86,885,686.00 Job ResultsTotal PLA Project Hours 129,513.89 62.3Total PLA Journeyman Hours 108,111.53 52.0Total PLA Apprentice Hours 20,714.73 10.0Overall COF Resident Journeyman Hours 44,705.15 21.5Target Value: Minimum 50% of Hours42% - Goal not metOverall COF Resident Apprentice Hours 6,047.35 2.9Target Value: Minimum 55% of Hours30% - Goal not metOverall COF Resident New Apprentice Hours 4,959.00 2.4Target Value: Minimum 30% of Hours23% - Goal not Met9
Capital Projects DepartmentAnnual Workshop – Community Workforce AgreementLocal Hire Program Statistics – 2023 to 2024 Reporting YearFebruary 1, 2023 to January 31, 2024Total PLA Contracts Awarded 15Completed PLA Contracts 5Full Time EquivalentTotal PLA Current Contract Amount$46,250,224.75 Job ResultsTotal PLA Project Hours 80,848.07 38.9Total PLA Journeyman Hours 62,463.79 30.0Total PLA Apprentice Hours 13,990.48 6.7Overall COF Resident Journeyman Hours 15,989.43 7.7Target Value: Minimum 50% of Hours26% - Goal not metOverall COF Resident Apprentice Hours 3,442.60 1.7Target Value: Minimum 55% of Hours25% - Goal not metOverall COF Resident New Apprentice Hours 2,990.60 1.4Target Value: Minimum 30% of Hours21% - Goal not Met10
Capital Projects DepartmentAnnual Workshop – Community Workforce AgreementTwo-year Anniversary Written Notice•Fresno, Madera, Kings and Tulare Counties Building and Construction Trades Council were provided written notice of percentage requirements not being met in July 2024.•Subsequently, Trades Council and the City held a Meet and Confer conference on September 9, 2024 to discuss status and established desire to assess options to improve outcomes.11
Capital Projects DepartmentAnnual Workshop – Community Workforce AgreementCapital Projects Bidding Outlook12Projects to be Awarded in FY 25 or Later95Sum of all Construction409,410,060$ Construction Value for PLA Projects9551Construction Value by Threshold955195219512Projects with Award Date of FY 25 or LaterNumber of Projects above $3 MillionNumber of Projects above $5 Million390,646,410$ 390,646,410$ 317,594,026$ 286,963,847$ Project Breakout by Threshold AmountPotentially Applicable for PLATotal Project Count Projects above $1 MillionNumber of Projects above $1 Million95
Capital Projects DepartmentAnnual Workshop – Community Workforce AgreementBidding Outlook - Project Category Distribution13$42,374,583$33,130,815$5,868,240$42,883,141$92,579,825$192,573,457$0$50,000,000$100,000,000$150,000,000$200,000,000Parks (22) Trails (5) Traffic Signals (6) Utilities (18) Roadways (36) Large Structures (8)
Capital Projects DepartmentAnnual Workshop – Community Workforce AgreementParks Category Projects (22 Total)14$6,503,977.40$35,870,605.35$28,188,229.35$24,788,229.35$0$5,000,000$10,000,000$15,000,000$20,000,000$25,000,000$30,000,000$35,000,000$40,000,000>$1 Million > $3 Million > $5 MillionNon‐PLA (< $1 Million)14 Projects8 Projects3 Projects2 Project
Capital Projects DepartmentAnnual Workshop – Community Workforce AgreementTrails Category Projects (5 Total)15$707,395.00$32,423,420.00$28,094,700.00$24,544,000.00$0$5,000,000$10,000,000$15,000,000$20,000,000$25,000,000$30,000,000$35,000,000$40,000,000>$1 Million > $3 Million > $5 MillionNon‐PLA (< $1 Million)1 Project4 Projects2 Projects1 Project
Capital Projects DepartmentAnnual Workshop – Community Workforce AgreementTraffic Signal Category Projects (6 Total)16$1,695,225.00$4,173,015.00$0.00 $0.00$0$2,000,000$4,000,000$6,000,000$8,000,000$10,000,000$12,000,000$14,000,000>$1 Million > $3 Million > $5 MillionNon‐PLA (< $1 Million)3 Projects3 Projects0 Projects0 Projects
Capital Projects DepartmentAnnual Workshop – Community Workforce AgreementUtility Infrastructure Category Projects (18 Total)17$5,235,347.93$37,647,793.00$28,305,100.00 $28,305,100.00$0$5,000,000$10,000,000$15,000,000$20,000,000$25,000,000$30,000,000$35,000,000$40,000,000$45,000,000>$1 Million > $3 Million > $5 MillionNon‐PLA (< $1 Million)9 Projects9 Projects3 Projects3 Projects
Capital Projects DepartmentAnnual Workshop – Community Workforce AgreementRoadway Category Projects (36 Total)18$3,441,400.00$89,138,425.12$41,612,845.00$21,289,364.00$0$10,000,000$20,000,000$30,000,000$40,000,000$50,000,000$60,000,000$70,000,000$80,000,000$90,000,000$100,000,000>$1 Million > $3 Million > $5 MillionNon‐PLA (< $1 Million)6 Projects30 Projects8 Projects3 Projects
Capital Projects DepartmentAnnual Workshop – Community Workforce AgreementLarge Structures Category Projects (8 Total)19$1,180,305.00$191,393,151.73 $191,393,151.73$188,037,153.73$0$50,000,000$100,000,000$150,000,000$200,000,000$250,000,000>$1 Million > $3 Million > $5 MillionNon‐PLA (< $1 Million)2 Projects6 Projects 6 Projects5 Projects
Capital Projects DepartmentAnnual Workshop – Community Workforce AgreementLocal Hiring Program – Next Steps for remainder of Agreement Year•Explore potential modifications to the Local Hiring Program with Trades Council to improve outcomes and meet percentage requirements•Continue to track PLA project labor implementation for three-year anniversary summary report20
Capital Projects DepartmentAnnual Workshop – Community Workforce AgreementLocal Hiring Program – PLA Agreement Timeline•March 2025 – Three-year Annual PLA Report Issuance that will cover February 1, 2024 through January 31, 2025 Reporting YearIf PLA targets are not met, City will issue Trades Council written notice. At meet and confer, City and Trades Council will explore potential modifications to the Local Hiring Program to improve outcomes and meet percentage requirements.•February 2026 – Four-year Annual PLA Report IssuanceSame process as above.•February 27, 2027 – PLA Expiration90 days prior to PLA expiration, at request of Trades Council or City, extension discussion can commence.21
Annual Workshop – Community Workforce AgreementQuestions & DiscussionCapital Projects DepartmentBUILDING A BETTER FRESNO22
l
1
COMMUNITY WORKFORCE AGREEMENT
FOR THE CITY OF FRESNO
INTRODUCTION/FINDINGS
This Commun ity Workforce Agreement is entered into this ~ day of
SePiGM8£ifl. , 20.d:L_, by and between the City of Fresno (hereinafter the "City"),
and the Fresno, Madera, Kings and Tulare Counties Building and Construction Trades
Council (hereinafter the "Trades Council") and its affiliated Unions that have executed this
Agreement (referred to collectively herein as the "Union(s)"). Contractors and
subcontractors of all tiers who work on City construction projects covered by this
Agreement (hereinafter the "Contractor(s)/ Employer(s)"), shall become signatory to this
Agreement by signing the "Agreement to be Bound" attached hereto as Addendum A.
A central purpose of this Agreement is to provide employment and training
opportunities that build pathways into high-quality, sustainable construction careers for
local workers, to create a pool of skilled construction labor for future City construction
projects, to develop the regional workforce and economy, and to combat unemployment
and underemployment in the region. Equally important, this Agreement is designed to
promote the efficiency of construction operations through the use of skilled labor resulting
in quality construction outcomes, and to provide for the peaceful settlement of labor
disputes and grievances without strikes or lockouts, thereby promoting the public interest
in assuring the timely and economical completion of City Projects covered by this
Agreement.
WHEREAS, this Agreement encourages construction employment and training
opportunities in ways calculated to mitigate the harms caused by geographically
concentrated poverty, unemployment and underemployment in economically
disadvantaged areas and among City residents; and
WHEREAS, this Agreement reflects a commitment by all parties to diversity,
workforce equity, and open opportunity in employment and training on City-funded
projects; and
WHEREAS, the City places high priority upon the development of comprehensive
programs for the recruitment, training and employment of local area residents and military
veterans, and recognizes the ability of local pre-apprenticeship and apprenticeship
programs to provide meaningful and sustainable career pathways in the construction
industry; and
WHEREAS, the timely and successful completion of City Projects is an important
fiduciary responsibility of the City of Fresno; and
WHEREAS, large numbers of workers of various skills will be required in the
performance of construction work on City Projects and the timely and successful
completion of City Projects is of the utmost importance to meet the needs of the City and
avoid increased costs from delays in construction; and
150866\1199858
Community Workforce Agreement
for the City of Fresno 1
WHEREAS, the use of skilled labor on construction work increases the safety of
construction projects as well as the quality of completed work; and
WHEREAS, it is recognized that on City Projects with multiple contractors and
bargaining units on the job site at the same time over an extended period of time, the
potential for work disruption may be substantial without an overriding commitment to
maintain continuity of work; and
WHEREAS, the interests of the general public, the City, the Unions, and the
Contractors/Employers are best served when construction work proceeds in an orderly
manner without disruption because of strikes, sympathy strikes, work stoppages,
picketing, lockouts, slowdowns or other interferences with work; and
WHEREAS, the Contractors/Employers and the Unions desire to mutually
establish and stabilize wages, hours and working conditions for the workers employed on
City Projects and to encourage close cooperation among the Contractors/Employers and
the Unions so that a satisfactory, continuous and harmonious relationship will exist; and
WHEREAS, the parties seek to avoid the tensions that would arise on City Projects
if Union and non-union workers of different employers were to work side by side on City
Projects, potentially leading to labor disputes that could delay completion of City Projects;
and
WHEREAS, this Agreement is not intended to replace, interfere with, abrogate,
diminish or modify existing local or national collective bargaining agreements in effect
during the duration of City Projects, insofar as a legally binding agreement exists between
the Contractors/Employers and the Unions, except to the extent that the provisions of this
Agreement are inconsistent with said collective bargaining agreements, in which event
the provisions of this Agreement shall prevail ; and
WHEREAS, the contract(s) for construction work on City Projects will be awarded
in accordance with the applicable provisions of all state, local and federal laws; and
WHEREAS, the parties to this Agreement pledge their full good faith and trust to
work toward the mutually satisfactory completion of the City Projects;
NOW, THEREFORE , IT IS AGREED BETWEEN AND AMONG THE PARTIES
HERETO, AS FOLLOWS:
ARTICLE I
DEFINITIONS
1.1 "Agreement" means this Community Workforce Agreement.
1.2 "Agreement to be Bound" means the agreement (attached hereto as
Addendum A) that shall be executed by each and every Contractor/Employer as a
condition of working on a Project.
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Community Workforce Agreement
for the City of Fresno 2
1.3 "City" means the City of Fresno, California and its governing board, officers,
agents and employees, including managerial personnel.
1.4 "City Resident" means an individual domiciled in the City. "Domiciled" has
the meaning set forth in section 349(b) of the California Election Code, which cannot be
a post office box.
1.5 "Completion" means that point at which there is Final Acceptance by the
City of a Construction Contract and the City has filed a Notice of Completion . For
purposes of this definition, "Final Acceptance" means that point in time at which the City
has determined upon final inspection that the work has been completed in all respects
and all required contract documents, contract drawings, warranties, certificates, manuals
and data have been submitted and training completed in accordance with the contract
documents and the City has executed a written acceptance of the work.
1.6 "Construction Contract" means the public works or improvement contract(s)
(including design-bid, design-build, lease-leaseback or other contracts under which
construction of City Projects is done) awarded by the City that are necessary to complete
City Projects.
1.7 "Contractor(s)/Employer(s)" or "Contractor(s)" or "Employer(s)" means any
individual, firm, partnership or corporation (including the prime contractor, general
contractor, construction manager, project manager, design-build entity, lease-leaseback
entity or equivalent entity), or combination thereof, including joint ventures, and their
successors and assigns, that is an independent business enterprise and enters into a
contract with the City with respect to the construction of any part of City Projects, and all
contractors and subcontractors of any tier.
1.8 "Covered Work" means work on a Project that is described in Section 2.3,
and not excluded pursuant to Section 2.4.
1.9 "Master Agreement" or "Schedule A" means the Master Collective
Bargaining Agreement of each craft Union signatory hereto.
1. 10 "New Local Apprentice" means a City Resident who both (i) is enrolled (or
can be immediately enrolled) in a state-approved joint labor-management apprenticeship
program and has progressed less than halfway toward the work hours needed to graduate
from such program; and (ii) is a graduate of a Trades Council-recognized pre-
apprenticeship program.
1.11 "Party" means the City, the Trades Council, and the Unions.
1.12 "Project" means a City awarded public works project as defined in California
Labor Code Section 1720, where the engineer's estimate of the total cost of the project
exceeds one million dollars ($1,000,000). All Construction Contracts required to complete
an integrated Project shall be considered in determining whether this threshold is met.
For the purpose of application of this threshold to Job Order Contracts, the threshold shall
be applied to each job order, rather than to the job order contract aggregate maximum;
150866\1199858
Community Workforce Agreement
for the City of Fresno 3
any individual job order above the threshold shall require application of this Agreement to
such individual job order. The City and the Trades Council may mutually agree in writing
to add additional projects or components to be covered by this Agreement.
1.13 "Project Manager" means the person(s) or entity(ies) designated by the City
to oversee all phases of construction on a Project and the implementation of this
Agreement.
1.14 "Trades Council" means the Fresno, Madera, Kings and Tulare Counties
Building and Construction Trades Council.
1.15 "Transitional Housing" means housing the purpose of which is to facilitate
the movement of homeless individuals and families into permanent housing within 24
months.
1.16 "Union" or "Unions" means the Trades Council and its affiliated local unions
signatory to this Agreement, acting on their own behalf and on behalf of their respective
affiliates and member organizations whose names are subscribed hereto and who have
through their officers executed this Agreement.
ARTICLE II
SCOPE OF AGREEMENT
2.1 Part ies : This Agreement applies to and is limited to all
Contractors/Employers performing work under a Construction Contract on a Project
(including subcontractors at any tier), and their successors and assigns, the City, the
Trades Council, and its affiliated Unions signatory to this Agreement.
2.2 Applicabili ty: This Agreement governs all Construction Contracts
awarded on City Projects . For purposes of this Agreement, Construction Contracts shall
be considered Completed as set forth in Section 1.5, except when the City directs a
Contractor to engage in repairs, warranty work, modifications, or punch list work under a
Construction Contract or when a Contractor performs work under a change order for a
Construction Contract.
2.2.1 The terms of this Agreement will cover, and will fully apply to, any
Contractor performing Project work, without regard to whether that Contractor performs
work at other sites on either a union or non-union basis. This Agreement shall not apply
to any work of any Contractor other than the Project work specifically covered by this
Agreement. No Contractor shall be required to become signatory to a Union Schedule A
Agreement as a result of performing Project work.
2.3 Covered Work : This Agreement covers, without limitation, all site
preparation, surveying, construction , alteration, demolition , installation , improvement,
remediation, retrofit, painting or repair of buildings, structures and other works, and
related activities for a Project that is within the craft jurisdiction of one of the Unions and
that is directly or indirectly part of a Project, including, without limitation to the following
examples, landscaping and temporary fencing, temporary HVAC, geotechnical and
\50866\1199858
Community Workforce Agreement
for the City of Fresno 4
exploratory drilling, soils and materials testing and inspection, pipelines (including those
in linear corridors built to serve a Project), pumps, pump stations, start-up, modular
furniture installation, and final clean-up. This Agreement covers work done for a Project
in temporary yards, dedicated sites, or areas adjacent to a Project, and at any on-site or
off-site batch plant constructed to supply materials to a Project.
2 .3.1 This Agreement applies to any start-up, calibration, commissioning,
performance testing, repair, maintenance, and operational revisions to systems and/or
subsystems for a Project performed after Completion, unless performed by City
employees.
2.3.2 This Agreement covers all on-site fabrication work over which the
City, Contractor(s)/Employer(s) or subcontractor(s) possess the right of control (including
work done for a Project in any temporary yard or area established for a Project). This
Agreement also covers any off-site work, including fabrication, that is traditionally
performed by the Unions and is directly or indirectly part of a Project, provided such work
is covered by a current Master Agreement or current local addenda to a national
agreement of the applicable Union(s).
2.3.3 Except for the delivery of supplies, equipment or materials that are
stockpiled for later use, this Agreement covers all construction trucking work, including
the hauling and delivery of ready-mix, asphalt, aggregate, sand, soil or other fill or similar
material that is directly incorporated into the construction process as well as the off-
hauling of soil, sand, gravel, rocks, concrete, asphalt, excavation materials, construction
debris and excess fill, material and/or mud. Contractor(s)/Employer(s), including brokers,
of persons providing construction trucking work shall provide certified payroll records to
the City within ten (10) days of written request or as required by the bid specifications.
2.3.4 Work covered by this Agreement within the following craft
jurisdictions shall be performed under the terms of their National Agreements as follows:
the National Transient Lodge (NTL) Articles of Agreement, the National Stack/Chimney
Agreement, the National Cooling Tower Agreement, the National Agreement of Elevator
Constructors, and any instrument calibration work and loop checking shall be performed
under the terms of the UA/IBEW Joint National Agreement for Instrument and Control
Systems Technicians, with the exception that Articles IV, XIV and XV of this Agreement
shall apply to such work.
2.4 Exclusions : The following shall be excluded from the scope of this
Agreement.
2.4.1 This Agreement shall not apply to work performed by the City's own
employees as permitted by the Public Contract Code.
2.4.2 This Agreement shall not apply to a Contractor/Employer's
non-construction craft employees, managerial employees, administrative personnel , and
supervisors above the level of general foreman, unless covered by a Master Agreement.
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Community Workforce Agreement
for the City of Fresno 5
2.4.3 This Agreement shall not apply to a contract entered into with a
professional service provider for a Project, as defined in Section 1.12, unless the
professional service provider performs or subcontracts Covered Work, in which event the
entity self-performing the Covered Work shall execute an Agreement to be Bound. Where
applicable, the City shall include this requirement in the professional services contract.
2.4.4 This Agreement shall not apply to any non-Project work performed
on or near or leading to the site of work covered by this Agreement that is undertaken by
state, county, city, or other governmental bodies or their contractors . Work performed by
public or private utilities including all electrical utility, voice-data-video, and security
installation work ahead of and up to the electrical service entry connection or the main
point of entry into the building shall be excluded. All electrical utility, voice-data-video, and
security installation work performed after the electrical utility service entrance or the main
point of entry shall be Covered Work. Additionally, all contracted work performed ahead
of the service entrance connection and main point of entry that is inside the property line
and provides for access to the building via a conduit or series of conduits shall be Covered
Work.
2.4.5 This Agreement shall not apply to the off-site maintenance of leased
equipment and on-site supervision of such work.
2.4.6 This Agreement does not apply to work by employees of, or
contractors retained by, a manufacturer or vendor necessary to maintain such
manufacturer's or vendor's warranty or guaranty, provided the manufacturer or vendor
provides documentation showing that the warranty or guarantee specifically requires such
employees or contractors to perform the work in order to preserve the warranty or
guarantee, or provided the manufacturer or vendor demonstrates by an enumeration of
specific tasks that the work cannot be performed by craft workers covered by this
Agreement.
2.4. 7 In circumstances requiring special knowledge, work may be
performed by persons not covered by this Agreement provided that the
Contractor/Employer or manufacturer responsible for such work demonstrates by an
enumeration of specific tasks that the work cannot be performed by craft workers covered
by this Agreement. A Contractor/Employer invoking this provision shall give notice to the
Trades Council and the relevant Union(s), and such work shall be identified and
discussed by the Contractor/Employer at its Pre-Job Conference, or, if not known at the
time of the Pre-Job Conference, shall be identified and discussed with the Trades Council
and the relevant Union(s) once the work becomes known, including by holding a Pre-Job
Conference if requested by the Trades Council or the relevant Union(s).
2.4.8 This Agreement shall not apply to work substantially funded by any
federal, state, other local or public agency that prohibits the use of project labor
agreements on projects receiving its funding, or the funding of projects on which such
agreements are used . With respect to such work, the City agrees that it will make a
reasonable effort to defend the application of this Agreement, including by making a
written request to the funding source . Notwithstanding the foregoing, however, should
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Community Workforce Agreement
for the City of Fresno 6
only a specific provision of the Agreement be prohibited by the funding source, the parties
shall modify the requirements of this Agreement accordingly, to advance the purposes of
this Agreement to the maximum extent feasible without the loss of funding.
2.4.9 This Agreement shall not apply to work that is jointly performed with
another public agency, unless the work is awarded by the City , or unless otherwise agreed
to by the Parties on a case by case basis. With respect to such work jointly performed
with another public agency, the City will make a request to the other public agency to
apply the terms of this Agreement, or in the alternative, request that the other public
agency communicate with City representatives and the Trades Council to discuss
application of this Agreement.
2 .4.10 This Agreement shall not apply to renovation of Transitional housing
buildings or units, given the time sensitivity of such work. For the avoidance of doubt, this
exclusion does not apply to new construction, nor to a total remodel where residents are
not occupying the building or units .
2.5 Award of Contracts: It is understood and agreed that the City has the right
to select any qua l ified bidder for the award of a Construction Contract under this
Agreement. The bidder need only be willing, ready and able to execute and comply with
this Agreement. It is further agreed that this Agreement shall be included in all invitations
to bid or solicitations for proposals from contractors or subcontractors for work on a
Project. The City shall provide a copy of all such invitations to bid to the Trades Council
at the time of issuance.
ARTICLE Ill
EFFECT OF AGREEMENT
3.1 By executing this Agreement, the Trades Council, the Unions and the City
agree to be bound by each and all of the provisions of the Agreement.
3.2 By accepting the award of work under a Construction Contract for a Project,
whether as a Contractor or subcontractor thereunder, all Contractors/Employers agree to
be bound by each and every provision of this Agreement and agree to evidence their
acceptance prior to the commencement of work by executing the Agreement to be Bound
in the form attached hereto as Addendum A.
3.3 At the time that any Contractor/Employer enters into a subcontract with any
subcontractor providing for the performance of work under a Construction Contract, the
Contractor/Employer shall provide a copy of this Agreement to said subcontractor and
shall require the subcontractor, as a condition of accepting the award of a construction
subcontract, to agree in writing, by executing the Agreement to be Bound, to be bound
by each and every provision of this Agreement prior to the commencement of work. The
obligations of a Contractor may not be evaded by subcontracting. If the subcontractor
refuses to execute the Agreement to be Bound, then such subcontractor shall not be
awarded a Construction Contract on a Project.
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3.4 This Agreement shall only be binding on the signatory parties hereto, and
their successors and assigns, and shall not apply to the parents, affiliates, subsidiaries,
or other ventures of any such party. Each Contractor shall alone be liable and responsible
for its own individual acts and conduct and for any breach or alleged breach of this
Agreement, except as otherwise provided by law or the applicable Master Agreement.
Any dispute between the Union(s) and the Contractor(s) with respect to compliance with
this Agreement shall not affect the rights, liabilities, obligations and duties between the
Union(s) and other Contractor(s) party to this Agreement.
3.5 It is mutually agreed by the parties that any liability by a Union signatory to
this Agreement shall be several and not joint. Any alleged breach of this Agreement by a
Union shall not affect the rights, liabilities, obligations and duties between the
Contractor(s) and the other Union(s) party to this Agreement.
3.6 The provisions of this Agreement, including the Schedule As incorporated
herein by reference, shall apply to the work covered by this Agreement, notwithstanding
the provisions of any other local, area and/or national agreements which may conflict with
or differ from the terms of this Agreement. To the extent a provision of this Agreement
conflicts with a Schedule A, the provision of this Agreement shall prevail. Where a
provision of a Schedule A does not conflict with this Agreement, the provision of the
Schedule A shall apply.
ARTICLE IV
WORK STOPPAGES, STRIKES, SYMPATHY STRIKES AND LOCKOUTS
4.1. The Unions, the City, and the Contractor(s)/Employer(s) covered by this
Agreement agree that for the duration of a Project:
4.1.1 There shall be no strikes, sympathy strikes, work stoppages,
picketing, handbilling or otherwise advising the public that a labor dispute exists, or
slowdowns of any kind, for any reason, by the Unions or employees employed on a
Project, at the job site of a Project or any other City facility because of a dispute on a
Project. Disputes arising between the Unions and Contractor(s)/ Employer(s) on other
City projects are not governed by the terms of the Agreement or this Article.
4. 1.2 There shall be no lockout of any kind by a Contractor/Employer of
workers employed on a Project.
4.1.3 If a Master Agreement expires before the Contractor/Employer
completes the performance of work under a Construction Contract and the Union or
Contractor/Employer gives notice of a demand for a new or modified Master Agreement,
the Union agrees that it will not strike on work covered by this Agreement and the Union
and the Contractor/Employer agree that the expired Master Agreement will continue in
full force and effect for work covered under this Agreement until a new or modified Master
Agreement is reached. If the new or modified Master Agreement provides that any terms
of the Master Agreement shall be retroactive, the Contractor/ Employer agrees to comply
with any retroactive terms of the new or modified Master Agreement that are applicable
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to any employee(s) on a Project during the interim, with retroactive payment due within
seven (7) calendar days of the effective date of the new or modified Master Agreement.
4.1.4 In the case of nonpayment of wages or trust fund contributions on a
Project, the Union shall give the City and the Contractor/Employer three (3) business
days' notice when nonpayment of trust fund contributions has occurred, and one (1)
business day's notice when nonpayment of wages has occurred or when paychecks
being tendered to a financial institution normally recognized to honor such paychecks will
not honor such paycheck , of the intent to withhold labor from the Contractor/Employers '
or their subcontractor's workforce, during which time the Contractor/Employer may
correct the default. In this instance, a Union's withholding of labor (but not picketing) from
a Contractor/Employer who has failed to pay its fringe benefit contributions or failed to
meet its weekly payroll shall not be considered a violation of this Article.
4.1 .5 Not ificatio n: If the City or any Contractor contends that any Union
has violated this Article, it will so notify in writing the Senior Executive of the Trades
Council and the Senior Executive of the Union , setting forth the facts alleged to violate
the Article , prior to instituting the expedited arbitration procedure set forth below . The
Trades Council will immediately use its best efforts to cause the cessation of any violation
of this Article. The leadership of the Union will immediately inform the workers of their
obligations under this Article. A Union complying with this obligation shall not be held
responsible for the unauthorized acts of employees it represents.
4.2 Expedi ted Arbitration : Any party to this Agreement shall institute the
following procedure , prior to initiating any other action at law or equity , when a breach of
this Article is alleged to have occurred.
4.2.1 A party invoking this procedure shall notify Robert Hirsch, as the
permanent arbitrator, or Barry Winograd, as the alternate arbitrator, under this procedure.
In the event the permanent arbitrator is unavailable at any time, the alternate will be
contacted. If neither is available, the parties shall select the arbitrator from the list in
Section 14.4. Notice to the arbitrator shall be by the most expeditious means available,
with notice by email and telephone to the City, the involved Contractor, and the party
alleged to be in violation, and to the Trades Council and involved local Union if a Union
is alleged to be in violation.
4 .2 .2 Upon receipt of said notice, the City will contact the permanent
arbitrator named above, or the alternate if the permanent arbitrator is not available, who
will attempt to convene a hearing within twenty-four (24) hours if it is contended that the
violation still exists.
4.2 .3 The arbitrator shall notify the parties by email and telephone of the
place and time for the hearing. Said hearing shall be completed in one session, which,
with appropriate recesses at the arbitrator's discretion, shall not exceed twenty-four (24)
hours unless otherwise agreed upon by all parties . A failure of any party to attend said
hearings shall not delay the hearing of evidence or the issuance of an award by the
arbitrator.
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4.2.4 The sole issue at the hearing shall be whether or not a violation of
Section 4.1 of the Agreement has occurred . The arbitrator shall have no authority to
consider any matter of justification, explanation or mitigation of such violation or to award
damages, which issue is reserved for court proceedings, if any. The award shall be issued
in writing within three (3) hours after the close of the hearing, and may be issued without
a written opinion. If any party desires a written opinion, one shall be issued within fifteen
( 15) calendar days, but the parties shall not delay compliance with or enforcement of the
award due to the issuance of a written opinion. The arbitrator may order cessation of the
violation of this Article, and the arbitrator's award shall be served on all parties by hand
or registered mail upon issuance. Should a party found in violation of this Article fail to
comply with the arbitrator's award ordering the party to cease the violation, the party in
violation shall pay to the affected party as liquidated damages the sum of ten thousand
dollars ($10,000.00) per shift for which it failed to comply, or portion thereof, until such
violation is ceased. The arbitrator shall retain jurisdiction to resolve any disputes
regarding the liquidated damages claimed under this section.
4.2.5 The arbitrator's award may be enforced by any court of competent
jurisdiction upon the filing of this Agreement and all other relevant documents referred to
above in the following manner. The party filing such enforcement proceedings shall give
written notice to the other party . In a proceeding to obtain a temporary order enforcing the
arbitrator's award as issued under this Article, all parties waive the right to a hearing and
agree that such proceeding may be ex parte. However, such agreement does not waive
any party's right to seek or participate in a hearing for a final order of enforcement. Any
court order enforcing the arbitrator's award shall be served on all parties by hand or
delivered by certified mail.
4.2.6 Any rights created by statute or law governing arbitration
proceedings inconsistent with the above procedure, or which interfere with compliance
with the above procedure, are waived by the parties.
4.2.7 The fees and expenses of the arbitrator shall be divided equally
between the party instituting the arbitration proceedings provided in this Article and the
party alleged to be in breach of its obligation under this Article.
4.2.8 Should either the permanent or the alternate arbitrator identified
above no longer work as a labor arbitrator, the City and the Trades Council shall mutually
agree to a replacement.
ARTICLEV
PRE-JOB CONFERENCES
5.1 Timing : The Project Manager shall convene and conduct, at a location and
time mutually agreeable to the Trades Council, a pre-job conference with the Unions and
the representatives of all involved Contractors/Employers, who shall be prepared to
announce craft assignments and discuss in detail the scope of work and the other issues
set forth below, at least fourteen (14) calendar days prior to:
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Community Workforce Agreement
for the City of Fresno
(b) The commencement of Project work on any subsequently awarded
Construction Contract.
5.2 The pre-job conference shall be attended by a representative of each
participating Contractor and each affected Union, and the Trades Council and City may
attend at their discretion.
5.3 The pre-job conference shall include but not be limited to the following
subjects:
(a) A listing of each Contractor and subcontractor and their scope of work;
(b) The craft assignments;
(c) The estimated number of craft workers required to perform the work;
(d) Transportation arrangements ;
(e) The estimated start and completion dates of the work ; and
(f) Discussion of pre-fabricated materials.
5.4 Joint Administrative Committee : This Agreement is intended to provide
close cooperation between management and labor. To that end, the City shall designate
two representatives and the Trades Council shall designate two representatives to serve
on a Joint Administrative Committee ("JAC"), each of whom may designate an alternate .
JAC members may invite participation by a Contractor or Union as needed. The JAC shall
meet quarterly and at the request of any member, to review progress of Projects and to
discuss matters of general concern , such as safety and security . The JAC shall serve as
a forum to foster communication between management and labor, and to assist the
Unions and the Contactors to complete Projects in an economically efficient manner
without interruption, delays or work stoppages.
5.4.1 The JAC shall participate in the drafting of reports to City Council
regarding the status of targeted objectives under this Agreement, including the local hiring
and apprenticeship provisions herein.
5.4.2 The JAC shall have no authority to review grievances or disputes
involving this Agreement, which are subject to the applicable grievance procedure .
ARTICLE VI
NO DISCRIMINATION
6.1 The Contractors/Employers and the Unions agree to comply with all anti-
discrimination provisions of federal, state , and local law, to protect employees and
applicants for employment, on a Project.
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ARTICLE VII
UNION SECURITY
7.1 The Contractors/Employers recognize the Unions as the sole bargaining
representative of all craft employees working within the scope of this Agreement, and all
such employees must be represented by a Union for the duration of their employment on
a Project.
7 .2 The Contractors/Employers shall make and transmit all deductions for
Union dues, fees, and assessments that have been authorized by employees in writing
in accordance with the applicable Master Agreement. This Agreement does not require
any employee of a non-Union Contractor/Employer to join a Union or to pay dues or fees
to a Union as a condition of working on a Project; however, nothing in this Article is
intended to supersede the independent requirements of the applicable Master
Agreements as to Contractors/Employers signatory to such Master Agreements and as
to employees of those Contractors/Employers who are performing Covered Work.
7 .3 Authorized representatives of the Unions shall have access to a Project
whenever work covered by this Agreement is being, has been, or will be performed on a
Project.
ARTICLE VIII
REFERRAL
8.1 Contractor(s)/Employer(s) performing construction work on a Project shall,
in filling craft job requirements, utilize and be bound by the registration facilities and
referral systems established or authorized by the Unions signatory hereto. The
Contractor(s)/Employer(s) shall have the right to reject any applicant referred by the
Union(s), in accordance with the applicable Master Agreement.
8.2 Contractor(s)/Employer(s) shall have the unqualified right to select and hire
directly all supervisors above the level of general foreman it considers necessary and
desirable, without such persons being referred by the Union(s), unless such craft
construction employee is covered by a Master Agreement.
8.3 Co re Work e rs : Contractor(s)/Employer(s) that are not signatory to a Master
Agreement may request by name, and the Union will honor, referral of Core Workers as
journeypersons for Project work who have been on the Contractor/Employer's active
payroll for at least sixty (60) out of the one hundred (100) working days prior to the
request, and who possess all licenses and certifications required to perform the work
("Core Workers").
8.3.1 The Union will refer to the Contractor one journeyperson employee
from the hiring hall then one Core Worker for the affected trade or craft. This process
shall be repeated, one and one , until the Contractor's workforce has a maximum of five
(5) Core Workers. Thereafter, all of the Contractor's additional employees performing
Covered Work shall be hired from the Union's hiring hall out-of-work list(s).
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8.3.2 When the Contractor's workforce is reduced, employees shall be
reduced so as to maintain the same ratio of Core Workers to hiring hall referrals as was
applied in the initial hiring.
8.3.3 The Contractor shall provide the appropriate Union with the name
and all necessary information for each Core Worker, and each Core Worker shall register
with the Union's hiring hall and comply with Article VII before commencing work on a
Project. If there is any question regarding an employee's eligibility as a Core Worker
under this section, the Contractor shall provide the Union with written records
demonstrating eligibility.
8.4 In the event that referral facilities maintained by the Union(s) are unable to
fill the requisition of a Contractor/Employer for employees within a forty-eight (48) hour
period (Saturdays, Sundays and Holidays excluded) after such requisition is made by the
Contractor/Employer, the Contractor/Employer shall be free to obtain the worker(s) from
any source. A Contractor/Employer who hires a worker(s) to perform Covered Work on a
Project pursuant to this section shall immediately provide the appropriate Union with the
name and address of such worker(s) and shall immediately refer such worker(s) to the
appropriate Union to satisfy the requirements of this Agreement.
ARTICLE IX
LOCAL HIRING PROGRAM
9.1 It is in the interest of the parties to this Agreement to facilitate employment
of City Residents to construct City Projects . To that end, the Unions agree to exert their
utmost efforts to recruit a sufficient number of craft persons to fulfill the referral requests
of Contractors/Employers for City Projects, consistent with this Article.
9.2 To the maximum extent allowed by law and consistent with the Unions'
hiring hall referral provisions set forth in Master Agreements, City residents shall be
requested by the Contractor(s)/Employer(s) and dispatched by the applicable Union(s).
9.3 Each Contractor shall either demonstrate satisfaction of the Percentage
Requirements in Section 9.4 below, or demonstrate satisfaction of the good faith efforts
set forth in Section 9 .5 below.
9.4 Percentage Requirements : For each Project, each Contractor shall make
best faith efforts to satisfy the following percentage requirements (the "Percentage
Requirements"):
9.4.1 at least 50 percent of all journey-level Project work hours performed
by City Residents;
9.4.2 at least 55 percent of all apprentice-level Project work hours
performed by City Residents;
9.4.3 at least 30 percent of all apprentice-level Project work hours
performed by New Local Apprentices.
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9.5 Each Contractor must take the following steps in an attempt to utilize City
Residents to satisfy the Percentage Requirements:
9.5.1 City Residents/Journey level Hours . Contractor may assign current
crew members who are City Residents to a Project. If staffing with Contractor's current
crew members does not enable satisfaction of the Percentage Requirement of Section
9 .4.1, the Contractor shall request referral of needed City Residents from the appropriate
Union hiring hall, using "name call," "rehire," or other available procedures to satisfy the
Percentage Requirement of Section 9.4.1. All requests for referrals under this subsection
shall be in writing.
9.5.2 City Residents/Apprentice Hours . Contractor may assign current
crew members who are City Residents and apprentices registered in a joint labor-
management apprenticeship program to a Project. If staffing with Contractor's current
crew members does not enable satisfaction of the Percentage Requirement of Section
9.4.2, the Contractor shall request referral of needed City Resident apprentices from the
appropriate Union hiring hall or joint labor-management apprenticeship program, using
"name call," "rehire," or other available procedures to satisfy the Percentage Requirement
of Section 9.4.2. All requests for referrals under this subsection shall be in writing.
9.5.3 New Local Apprentices . Contractor may assign current crew
members who are New Local Apprentices to a Project. If staffing with Contractor's current
crew members does not enable satisfaction of the Percentage Requirement of Section
9.4.3, the Contractor shall request referral of New Local Apprentices from the appropriate
Union hiring hall or joint labor-management apprenticeship program, using "name call,"
"rehire," or other available procedures to satisfy the Percentage Requirement of Section
9.4.3. All requests for referrals under this subsection shall be in writing .
9.6 Union hiring halls and, where applicable, joint apprenticeship programs, will
refer apprentices to non-signatory Contractors/Employers upon request provided the
Contractors/Employers submit the forms required by the Department of Industrial
Relations.
9.7 Oversight and Enforcement. Contractor requirements of the Local Hiring
Program shall be terms of the prime contracts awarded by the City and subcontracts
awarded by Contractors. Enforcement actions shall be pursuant to contract compliance
procedures set forth in such contracts. Hours worked by workers who reside in states
other than California shall not be considered in compliance determinations regarding the
Local Hiring Program. Upon request by the City, Contractors shall submit copies of all
information necessary to determine Contractor compliance with the Local Hiring Program,
including dispatch requests and responses, records regarding hiring decisions of City
Residents and New Local Apprentices who were referred but not hired, and any other
relevant information requested by the City.
9.8 Federally-Funded Projects : The requirements of this Article IX shall not
apply to Projects for which a federal funding source prohibits such application. However,
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if a federal funding source requires alternative hiring goals or requirements (such as in
federal Executive Order 11246), then such requirements shall apply , and all requirements
and procedures set forth in this Article shall be utilized to implement the alternative hiring
goals or requirements imposed by the federal funding source. The City shall notify the
Trades Council in the event that federal hiring goals supplant this Article.
ARTICLE X
WAGES AND BENEFITS
10.1 The Contractors/Employers agree to pay contributions to the vacation,
pension and/or other deferred compensation plan, apprenticeship, worker protection and
assistance, and health benefit funds established by the applicable Master Agreement(s)
for each hour worked on a Project, in the amounts designated in the applicable Master
Agreement(s).
10.2 By signing this Agreement, the Contractors/Employers adopt and agree to
be
bound by the written terms of the legally established Trust Agreements described in
Section 10.1, which may from time to time be amended, specifying the detailed basis
upon which payments are to be made into, and benefits paid out of, such Trust Funds.
The Contractors/Employers authorize the parties to such local Trust Agreements to
appoint trustees and successor trustees to administer the Trust Funds and hereby ratify
and accept the trustees so appointed as if they were appointed by the
Contractors/Employers. The Contractors/Employers agree to execute a separate
subscription agreement(s) when such Trust Fund(s) requires such document(s).
10.3 Wages , Hours , Terms and Conditions of Employment: The wages, hours
and other terms and conditions of employment on City Projects shall be governed by the
Master Agreement of the respective craft, to the extent such Master Agreement is not
inconsistent with this Agreement. Where a subject is covered by the Master Agreement
and not covered by this Agreement, the Master Agreement will prevail. When a subject is
covered by both the Master Agreement and this Agreement, to the extent there is any
inconsistency, this Agreement will prevail.
10.4 Holidays : Holidays shall be as set forth in the applicable Master Agreement.
ARTICLE XI
APPRENTICES
11.1 Recognizing the need to develop adequate numbers of competent workers
in the construction industry, including on public works projects, the
Contractors/Employers shall employ apprentices from a California state-approved Joint
Apprenticeship Training Program in their respective crafts, to perform such work as is
within their capabilities and that is customarily performed by the craft in which they are
indentured.
11.2 Apprentice ratios will be in compliance with the provisions of the California
Labor Code and the applicable state prevailing wage determination.
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11.3 Consistent with the Master Agreements, there shall be no restriction on the
utilization of apprentices in performing the work of their craft provided they are properly
indentured and supervised.
ARTICLE XII
HELMETS TO HARDHATS
12.1 The Contractors/Employers and Unions recognize a desire to facilitate the
entry into the building and construction trades of veterans who are interested in careers
in the building and construction industry. The Contractors/Employers and Unions agree
to utilize the services of the Center for Military Recruitment, Assessment and Veterans
Employment (hereinafter "Center") and the Center's "Helmets to Hardhats" program to
serve as a resource for preliminary orientation, assessment of construction aptitude,
referral to apprenticeship programs or hiring halls, counseling and mentoring, support
network, employment opportunities and other needs as identified by the parties.
12.2 The Unions and Contractors/Employers agree to coordinate with the Center
to participate in an integrated database of veterans interested in working on Projects and
of apprenticeship and employment opportunities for Projects. To the extent permitted by
law, the Unions will give credit to such veterans for bona fide, provable past experience .
ARTICLE XIII
COMPLIANCE
13.1 It shall be the responsibility of the Contractors/Employers and Unions to
investigate and monitor compliance with the provisions of Article IX of this Agreement.
Nothing in this Agreement shall be construed to interfere with or supersede the usual
and customary legal remedies available to the Unions and/or employee benefit Trust
Funds to collect delinquent wages or Trust Fund contributions from
Contractors/Employers on the Projects. Because the Projects are public works subject
to the California Labor Code, the City shall monitor and enforce the
Contractors/Employers' compliance with state prevailing wage requirements as well as
this Agreement.
ARTICLE XIV
GRIEVANCE ARBITRATION PROCEDURE
14.1 Project Labor Disputes: All disputes involving the application or
interpretation of a Master Agreement to which a Contractor/Employer and a Union are
parties shall be resolved pursuant to the resolution procedures of the Master Agreement.
All disputes relating to the interpretation or application of this Agreement, other than
disputes under Article IV and Article XV, shall be subject to resolution by the grievance
arbitration procedures set forth in this Article.
14.2 Employee Discipline : All disputes involving the discipline and/or discharge
of an employee working on a Project shall be resolved through the grievance and
arbitration provisions contained in the Master Agreement for the craft of the affected
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employee. No employee working on a Project shall be disciplined or discharged without
just cause.
14.3 No grievance shall be recognized unless the grieving party (Union or District
Council on its own behalf, or on behalf of an employee whom it represents, or a
Contractor/Employer on its own behalf) provides notice in writing to the party with whom
it has a dispute within five (5) business days after becoming aware of the dispute but in
no event more than thirty (30) business days after it reasonably should have become
aware of the event giving rise to the dispute. Time limits may be extended by mutual
agreement of the parties.
14.4 Grievances shall be settled according to the following procedures:
Step 1: Within five (5) business days after the receipt of the written notice
of the grievance, the representative of the involved Union or District Council, or his/her
designee, and the representative of the involved Contractor/Employer, shall confer and
attempt to resolve the grievance.
Step 2 : If the grievance is not resolved at Step 1, within five (5) business
days of the Step 1 meeting or the conclusion of efforts to resolve the grievance at Step 1,
the alleged grievance may be referred in writing by either involved party to the Business
Manager(s) of the affected Union(s) involved and the Labor Relations Manager of the
Contractor/Employer, or the Contractor/Employer's designated representative, for
discussion and resolution. This time limit may be extended by mutual consent of both
parties. Regardless of which party has initiated the grievance, the Union shall notify its
International Union representative prior to the Step 2 meeting, and the International Union
representative shall advise if it intends to participate in the Step 2 meeting. The Project
Manager and the Trades Council shall have the right to participate in any efforts to resolve
the dispute at Step 2.
Step 3: If the grievance is not resolved at Step 2, either party may request
the dispute be submitted to arbitration within five (5) business days of the Step 2 meeting
or the conclusion of efforts to resolve the grievance at Step 2. This time limit may be
extended by mutual consent of both parties . Within five (5) business days after referral of
a dispute to arbitration, the representatives shall notify the permanent arbitrator
designated in Article IV, or if not available, the alternate arbitrator designated in Article IV,
for final and binding arbitration. If the permanent arbitrator or the alternate is not available,
an arbitrator shall be selected by the alternate striking method from the list of three (3)
below. The order of striking names from the list of arbitrators shall be determined by a
coin toss, the winner of which shall decide whether they wish to strike first or second.
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1. Carol Vendrillo
2. David Weinberg
3. Mark Keppler
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14.5 The decision of the arbitrator shall be final and binding on all parties. The
arbitrator shall have no authority to change, amend, add to or detract from any of the
provisions of the Agreement. The expense of the arbitrator shall be borne equally by both
parties. The arbitrator shall arrange for a hearing on the earliest available date from the
date of his/her selection. A decision shall be given to the parties within five (5) calendar
days after completion of the hearing unless such time is extended by mutual agreement.
A written opinion may be requested by a party from the presiding arbitrator.
14.6 The time limits specified at any step of the grievance procedure may be
extended by mutual agreement of the parties. However, failure to process a grievance, or
failure to respond in writing within the time limits provided above, without an agreed upon
extension of time, shall be deemed a waiver of such grievance without prejudice, or
without precedent to the processing and/or resolution of like or similar grievances or
disputes.
14. 7 In order to encourage the resolution of disputes and grievances at Steps 1
and 2 of this grievance procedure, the parties agree that such settlements shall not be
precedent setting.
14.8 Should any of the arbitrators listed in this Article or Article IV no longer work
as a labor arbitrator, the City and the Trades Council shall mutually agree to a
replacement.
ARTICLE XV
WORK ASSIGNMENTS AND JURISDICTIONAL DISPUTES
15.1 The assignment of Covered Work will be solely the responsibility of the
Employer performing the work involved; and such work assignments will be in accordance
with the Plan for the Settlement of the Jurisdictional Disputes in the Construction Industry
(the "Plan") or any successor Plan.
15.2 All jurisdictional disputes on this Project between or among the building and
construction trades Unions and the Employers parties to this Agreement, shall be settled
and adjusted according to the present Plan established by the Building and Construction
Trades Department or any other plan or method of procedure that may be adopted in the
future by the Building and Construction Trades Department. Decisions rendered shall be
final, binding and conclusive on the Employers and Unions parties to this Agreement.
15.3 If a dispute arising under this Article involves the Northern California
Carpenters Regional Council or any of its subordinate bodies, an arbitrator shall be
chosen by the procedures specified in Article V, Section 5 of the Plan from a list composed
of John Kagel, Thomas Angelo, Robert Hirsch and Thomas Pagan, and the arbitrator's
hearing on the dispute shall be held at the offices of the California State Building and
Construction Trades Council in Sacramento, California within fourteen (14) calendar days
of the selection of the arbitrator. All other procedures shall be as specified in the Plan.
15.4 All jurisdictional disputes shall be resolved without the occurrence of any
strike, work stoppage, or slow-down of any nature, and the Employer's assignment shall
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be adhered to until the dispute is resolved. Individual employees violating this section
shall be subject to immediate discharge.
15.5 Each Employer will conduct a pre-job conference with the Trades Council
prior to commencing work . The City and the Project Manager will be advised in advance
of all such conferences and may participate if they wish. Pre-job conferences for different
Employers may be held together.
ARTICLE XVI
MANAGEMENT RIGHTS
16 .1 Consistent with the Schedule A agreements, the Contractor(s)/Employer(s)
shall retain full and exclusive authority for the management of their operations, including
the right to direct their work force in their sole discretion. No rules, customs or practices
shall be permitted or observed which limit or restrict production, or limit or restrict the
working efforts of employees, except that all lawful manning provisions in the Master
Agreement shall be recognized.
ARTICLE XVII
DRUG AND ALCOHOL TESTING
17.1 The use, sale, transfer, purchase and/or possession of a controlled
substance, alcohol and/or firearms at any time during the work day is prohibited.
17.2 Drug and alcohol testing shall be conducted in accordance with the
substance abuse prevention policies set forth in the applicable Schedule A.
ARTICLE XVIII
SAVINGS CLAUSE
18.1 If any article, provision, clause, sentence or word of this Agreement is
determined to be illegal or void as being in contravention of any applicable law, by a court
of competent jurisdiction, the remainder of the Agreement shall remain in full force and
effect. The parties further agree that if any article, provision, clause, sentence or word of
the Agreement is determined to be illegal or void, by a court of competent jurisdiction , the
parties shall substitute, by mutual agreement, in its place and stead, an article, provision,
clause, sentence or word that will meet the objections to its validity and will be in
accordance with its original intent. If the parties are unable to agree on substitute
language, then the entire Agreement shall be null and void.
18.2 If a court of competent jurisdiction determines that all or part of the
Agreement is invalid and/or enjoins the City from complying with all or part of the
Agreement's provisions, and the City accordingly determines that compliance with this
Agreement will not be required in order to perform work under a Construction Contract ,
the Unions will no longer be bound by the provisions of Article IV.
15086611199858
Community Workforce Agreement
for the City of Fresno 19
ARTICLE XIX
TERM
19.1 This Agreement shall be included in all bid documents, requests for
proposals, or other equivalent Project solicitations, which shall indicate that entering into
this Agreement is a condition of the award of a Construction Contract(s) for each Project.
19.2 This Agreement shall apply until the Completion of each Project in
accordance with Sections 1.5 and 2.2.
19.3 This Agreement shall become effective 120 days after it is executed by the
City and the Trades Council and shall remain in effect until the five (5) year anniversary
of the effective date. During this term, the City administration shall prepare annual reports
to the City Council on Agreement implementation and results of the Local Hiring Program,
which reports shall be provided to the JAC for review and comment prior to submission
to the City Council. The Unions, Trades Council, and Contractors shall provide to the
administration requested information relevant to such reports, including information
regarding referrals from hiring halls for Covered Work on Projects. Upon the two-year
anniversary of the effective date, if the Percentage Requirements set forth in the Local
Hiring Program are not being met on all Projects in aggregate, the City shall provide the
Trades Council with written notice. Upon receipt of such notice, the Trades Council and
the City shall meet and confer regarding whether to modify the Local Hiring Program in
order to improve outcomes and meet the Percentage Requirements, with any such
modifications made upon mutual agreement by the Trades Council and the City. A similar
process will take place on the third and fourth anniversaries of the effective date.
19.4 Approximately ninety (90) days prior to the five (5) year anniversary of the
effective date of this Agreement, at the request of either party, the City and Trades Council
shall meet to discuss whether to extend this Agreement, and, if so, the proposed terms
of such extension including any proposed changes to the Agreement.
ARTICLE XX
MISCELLANEOUS PROVISIONS
20.1 The section headings contained in this Agreement are inserted for
convenience only and shall not affect in any way the meaning or interpretation of this
Agreement. All defined terms used in this Agreement shall be deemed to refer to the
singular and/or plural, in each instance as the context and/or particular facts may require.
20.2 This Agreement may be executed in counterparts, such that original
signatures may appear on separate pages and when bound together all necessary
signatures shall constitute an original. Faxed or emailed signature pages transmitted to
other parties to this Agreement shall be deemed the equivalent of original signatures.
20.3 Each of the persons signing this Agreement represents and warrants that
such person has been duly authorized to sign this Agreement on behalf of the party
150866\119985 8
Community Workforce Agreement
for the City of Fresno 20
indicated, and each of the parties signing this Agreement warrants and represents that
such party is legally authorized and entitled to enter into this Agreement.
20.4 The parties acknowledge that this is a negotiated agreement, that they have
had the opportunity to have this Agreement reviewed by their respective legal counsel,
and that the terms and conditions of this Agreement are not to be construed against any
party on the basis of such party's draftsmanship thereof.
20.5 All defined terms used in this Agreement shall be deemed to refer to the
singular and/or plural, in each instance as the context and/or particular facts may require.
I 50866\1199858
[SIGNATURES TO FOLLOW]
Community Workforce Agreement
for the City of Fresno 21
CITY OF FRESNO
FRESNO, MADERA, KINGS AND TULARE
COUNTIES BUILDING AND CONSTRUCTION
TRADES COUNCIL
150866\1199858
Community Workforce Agreement
for the City of Fresno
Date: C,. z_t;. z/
22
150866\ I I 99858
[UNION SIGNATURES]
Community Workforce Agreement
for the City of Fresno 23
Addendum A
AGREEMENT TO BE BOUND
[Date]
[Addressee]
[Address]
Re: City of Fresno Community Workforce Agreement
Agreement to be Bound
Dear --------
The undersigned confirms that it agrees to be a party to and bound by the City of Fresno
Community Workforce Agreement ("Agreement") as such Agreement may, from time to
time, be amended by the parties or interpreted pursuant to its terms.
By executing this Agreement to be Bound, the undersigned subscribes to, adopts and
agrees to be bound by the written terms of the legally established trust fund documents
as set forth in Section 10 .1 of the Agreement, as they may from time to time be amended,
specifying the detailed basis upon which contributions are to be made into, and benefits
made out of, such trust funds, and ratifies and accepts the trustees appointed by the
parties to such trust funds. The undersigned agrees to execute a separate subscription
agreement(s) for such trust funds when such trust fund(s) require(s) such document(s).
The obligation to be a party to and bound by the Agreement shall extend to all work
covered by the Agreement undertaken by the undersigned. The undersigned shall
require all of its subcontractors, of whatever tier, to become similarly bound for all their
work within the scope of the Agreement by signing an identical Agreement to be Bound.
This letter shall constitute a subscription agreement, to the extent of the terms of the letter .
CONTRACTOR/SUBCONTRACTOR: -------------------
California Contractor State License No. or Motor Carrier (CA) Permit No .:
Name of Authorized Person (print):
Signature of Authorized Person :
Title of Authorized Person :
Telephone Number of Authorized
Person : --------------------
150866\1199858
Community Workfo rce Agreement
for the City of Fresno 24
Address of Authorized
Person: ---------------------------
State Public Works Registration Number:
150866\1199858
Community Workforce Agreement
for the City of Fr esno 25
Addendum B
SIDE LETTER
The parties recognize that the capacity to perform slurry seal maintenance work
may not exist locally. Their mutual intent is to facilitate the creation of such capacity locally
over time. Accordingly, the parties agree that with respect to slurry seal maintenance work
that may otherwise be covered by this agreement, in the event the City receives no
responsive bids, the parties agree to meet and confer. The parties may mutually agree
to exclude such projects from coverage under this Agreement, or agree to modify the
terms of this Agreement for the purpose of such projects. If the parties cannot agree, the
City Manager may recommend to the City Council the exclusion of such projects from
PLA coverage.
The parties further recognize that significant, new federal resources may become
available after the effective date of this Agreement, and that such resources may require
changes to this Agreement in order to ensure that the City can take full advantage of such
resources. The parties' mutual goal is to ensure that nothing in this Agreement will impair
the City's ability to apply for and receive such new funding, and that they will endeavor to
agree on any necessary changes to ensure compliance with any new federal regulations
governing such funding.
15086611199858
Community Workforce Agreement
for the City of Fresno 26
City of Fresno
Staff Report
2600 Fresno Street
Fresno, CA 93721
www.fresno.gov
File #:ID 25-154 Agenda Date:1/30/2025 Agenda #:
3.-B.
REPORT TO THE CITY COUNCIL
FROM:JENNIFER K. CLARK, AICP, Director
Planning and Development Department
NICHOLAS D. MASCIA, PE, TE, PTOE, Assistant City Manager
Interim Director - Capital Projects Department
BY:MELISSA ALMAGUER, Parking Manager
Planning and Development Department
ARMANDO CERVANTES, Project Manager
Capital Projects Department
SUBJECT
WORKSHOP - Downtown Fresno Parking Automation
Attachment: Presentation
City of Fresno Printed on 2/7/2025Page 1 of 1
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1-30-2025
PRESENTED
Parking Division:
Gated vs Gateless Parking Garage
Automation Program
Agenda
Introduction - Background
Gated Parking Systems
Gateless Parking Systems
Similarities and Differences
Discussion and Questions
Background of Automation Project
Purpose of Automation Project:
•Deliver high-quality parking automation across five Downtown
City of Fresno parking facilities, intended to provide quality and
sustainable automation, communication and reporting
functionality for the City.
•Convention Center Garage
•Congo Alley Garage
•Underground Garage
•Spiral Garage
•Merced Garage
•Currently seeking feedback for the Administration
Topics we will cover
What’s
Similar and
Different:
Gated vs.
Gateless
Gated and
Gateless
Experiences
in Other
Cities
Q&A
Terminology
Gateless
PARCS
Appearance
and
Operation
Gated
PARCS
Appearance
and
Operation
Terminology
•PARCS : Parking Access and Revenue Control
System
•LPR Camera: License Plate Recognition
camera, Fixed or Mobile
•POF: Pay on Foot Kiosk, Cash/Credit or
Credit Only
•PbC: Pay by Cell mobile application
Gated PARCS- Appearance and Operation
•Entry to and Exit from garage are controlled by barrier gates.
•Parkers pull a ticket or present an access credential at entry.
•Parkers pay just before exiting at POF, or PbC, or at Exit Lane kiosk -- “Post-Pay”.
•LPR can be used to provide expedited entry and exit but is not mandatory.
•Parking fee reflects total duration from entry to exit.
•Low risk of lost revenue, and no need for enforcement due to presence of gates.
Gateless PARCS- Appearance and Operation
•No barrier gates at entry or exit lanes.
•Parkers pay upon arrival for expected parking duration at POF or PbC – “Pre-Pay”.
•Parking session duration can be extended via PbC or at POF.
•Payment requires entry of License Plate Number.
•Active enforcement by Parking Dept. required, using combination of Mobile & Fixed LPR.
•Moderate risk of lost revenue; strong enforcement reduces risk.
Gated vs. Gateless- What’s Similar and
Different
Similar
•Both require POF kiosks,
accepting cash and/or credit
cards, and can support PbC
mobile payment.
•Both will have a single
administrative interface to be
used by Parking Dept.
•Both require high-speed
networking connections to
each parking facility.
•Both can support permit
parkers.
Different
•Gated requires additional entry and exit
lane equipment, provides controlled access
•Ungated allows “frictionless” access
•Gated is “Post-Pay”, ungated is “Pre-Pay”
•Gated issues a ticket at entry
•Ungated requires parker to enter License
Plate Number to pre-pay.
•Gated doesn’t require enforcement.
•Ungated requires usage of Mobile/Fixed
LPR and strong enforcement.
Gated vs Gateless:
Experiences from Other Cities
•Replaced very old gated
PARCS in 14 facilities.
•Ungated felt to have
lower equipment costs.
•Initial parker confusion
with need to pre-pay.
•Needed to greatly
increase enforcement.
•Have not yet measured
lost revenue impact.
Oakland, CACA
•Switched 2 garages from
gateless to gated.
•Gateless had issues with
payment compliance
and non-parkers using
garages as a “hang-
out”.
•PD had inadequate
resources to perform
enforcement in gateless.
•No cash with gated
system.
Easton, PA
•Switched 5 garages to
gateless.
•Gated felt to have
higher maintenance
cost and slower
entry/exit.
•No POFs or cash
payments Extensive
public outreach
•Parking citations are
sent by mail. (Not
allowed in CA)
Boulder, CO
Questions?
City of Fresno
Staff Report
2600 Fresno Street
Fresno, CA 93721
www.fresno.gov
File #:ID 25-85 Agenda Date:1/30/2025 Agenda #:
5.-A.
CLOSED SESSION ITEM
SUBJECT
CONFERENCE WITH LABOR NEGOTIATORS - Government Code Section 54957.6
City Negotiators: Jennifer Misner; Sumeet Malhi
Employee Organization(s): 1. International Union of Operating Engineers, Stationary Engineers,
Local 39 (Local 39); 2. Fresno City Employees Association (FCEA); 3. Fresno Police Officers
Association (FPOA Basic), Unit 4; 4. International Association of Firefighters, Local 202, Unit 5 (Fire
Basic); 5. Amalgamated Transit Union, Local 1027 (ATU); 6. International Brotherhood of Electrical
Workers, Local 100 (IBEW); 7. Fresno Police Officers Association (FPOA Management) Unit 10; 8.
International Association of Firefighters, Local 202, Unit 10 (Fire Management); 9. City of Fresno
Professional Employees Association (CFPEA); 10. City of Fresno Management Employees
Association (CFMEA); 11. Fresno Airports Public Safety Officers Association (FAPSOA)
City of Fresno Printed on 2/7/2025Page 1 of 1
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1-30-2025
DISCUSSED,
NO REPORT
City of Fresno
Staff Report
2600 Fresno Street
Fresno, CA 93721
www.fresno.gov
File #:ID 25-105 Agenda Date:1/30/2025 Agenda #:
5.-B.
CLOSED SESSION ITEM
SUBJECT
CONFERENCE WITH LEGAL COUNSEL-EXISTING LITIGATION
Government Code Section 54956.9, subdivision (d)(1)
Park 7, LLC., and LandValue Management LLC., v. City of Fresno; Fresno Superior Court Case No.
24CECG04298
City of Fresno Printed on 2/7/2025Page 1 of 1
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1-30-2025
DISCUSSED,
NO REPORT
City of Fresno
Staff Report
2600 Fresno Street
Fresno, CA 93721
www.fresno.gov
File #:ID 25-125 Agenda Date:1/30/2025 Agenda #:
5.-C.
CLOSED SESSION ITEM
SUBJECT
CONFERENCE WITH LEGAL COUNSEL-EXISTING LITIGATION
Government Code Section 54956.9, subdivision (d)(1)
Doredda Grossman, et al v. City of Fresno;Fresno Superior Court Case No. 23CECG00345
City of Fresno Printed on 2/7/2025Page 1 of 1
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1-30-2025
DISCUSSED,
NO REPORT
City of Fresno
Staff Report
2600 Fresno Street
Fresno, CA 93721
www.fresno.gov
File #:ID 25-145 Agenda Date:1/30/2025 Agenda #:
5.-D.
CLOSED SESSION ITEM
January 30, 2025
SUBJECT
CONFERENCE WITH LEGAL COUNSEL-EXISTING LITIGATION -
Government Code Section 54956.9, subdivision (d)(1)
South Fresno Community Alliance v. City of Fresno, et al.
Fresno Superior Court Case No.: 21CECG03237
City of Fresno Printed on 2/7/2025Page 1 of 1
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1-30-2025
DISCUSSED,
NO REPORT
City of Fresno
Staff Report
2600 Fresno Street
Fresno, CA 93721
www.fresno.gov
File #:ID 25-166 Agenda Date:1/30/2025 Agenda #:
5.-E.
CLOSED SESSION ITEM
SUBJECT
CONFERENCE WITH LEGAL COUNSEL-EXISTING LITIGATION
Government Code Section 54956.9, subdivision (d)(1)
Case Name(s): City of Fresno v. Fresno Building Healthy Communities Court of Appeal Case No.:
F084662; and Fresno Building Healthy Communities v. City of Fresno Court of Appeal Case No.:
F084666 (PARCS Department)
City of Fresno Printed on 2/7/2025Page 1 of 1
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1-30-2025
DISCUSSED,
NO REPORT
City of Fresno
Staff Report
2600 Fresno Street
Fresno, CA 93721
www.fresno.gov
File #:ID 25-80 Agenda Date:1/30/2025 Agenda #:5.-F.
CLOSED SESSION ITEM
SUBJECT
CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION
Government Code Section 54956.9, subdivision (d)(2)
Significant Exposure to Litigation:
Josie Rodriguez v. City of Fresno, Risk File No. RM2022043424 (Police Department)
City of Fresno Printed on 2/7/2025Page 1 of 1
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1-30-2025
DISCUSSED,
NO REPORT
City of Fresno
Staff Report
2600 Fresno Street
Fresno, CA 93721
www.fresno.gov
File #:ID 25-150 Agenda Date:1/30/2025 Agenda #:
5.-G.
CLOSED SESSION ITEM
SUBJECT
PUBLIC EMPLOYEE PERFORMANCE EVALUATION
1. Government Code Section 54957(b): consider the appointment, employment, evaluation of
performance, discipline, or dismissal of a public employee.
Title: City Attorney
2. Government Code Section 54957.6: conference with labor negotiator. City Negotiator: Council
President Mike Karbassi. Unrepresented Employee: City Attorney
City of Fresno Printed on 2/7/2025Page 1 of 1
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1-30-2025
DISCUSSED,
NO REPORT