Agenda — Ceres City Council, December 8, 2025 (part 2 of 2)

I. BACKGROUND:

The proposed changes to this ordinance are in direct response to numerous citizen complaints regarding unsafe bicycling behavior within our community. These concerns have also been observed firsthand by Ceres Police Officers, who have, in many cases, been compelled to intervene to prevent injury or property damage.

The reported and observed unsafe behaviors include riding into oncoming traffic and swerving at the last moment to avoid collisions, as well as general disregard for traffic laws. These actions often violate multiple sections of the California Vehicle Code , such as improper lane usage, failure to stop at stop signs and red lights, and other hazardous maneuvers.

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In light of these ongoing issues, City staff has identified the need to strengthen the Municipal Code provisions related to bicycle use. The goal is to provide law enforcement with clearer authority and appropriate tools to address violations effectively, and to hold not only the riders but also their parents or event organizers accountable when necessary.

These additions also include an educational component that is currently not in place. This provision will allow the Police Department to refer minors under the age of 16, who violate any part of this ordinance or a related Vehicle Code section, to a bicycle operator’s course approved by the Chief of Police
II. REASONS FOR RECOMMENDATION:

The Police Department is recommending these amended and additional ordinances be adopted to strengthen public safety, not only for motorists, but also for pedestrians and those participating in bicycle activities.

III. FISCAL IMPACTS:

The addition of impound fees under Section 10.05.130(D) may result in a modest increase to the City’s General Fund
IV. EXISTING POLICY / RELATIONSHIP TO THE STRATEGIC PLAN:

N/A
V. POLICY ALTERNATIVES:

Should Council decide not to approve the additions and amendments to the ordinance, the Police Department will continue to attempt to regulate bicycles using the existing municipal code and California vehicle code.

VI. INTERDEPARTMENTAL COORDINATION:

N/A
VII. PUBLIC PARTICIPATION:

N/A
VIII. ENVIRONMENTAL REVIEW:

N/A
IX. STEPS FOLLOWING APPROVAL:

The City Council will consider a second reading and adoption of the Ordinance at a later meeting of the City Council.

Approved by: ____________________
Douglas D. Dunford,
City Manager
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Attachments:

1. Attachment A – Ordinance

2. Attachment B – Redline Changes

3. Attachment C – Public Hearing Notice
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ITEM 15

ATTACHMENT A
{CW126823.1}
ORDINANCE NO. 2025-XXXX

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CERES ADDING SECTION 10.05.000 – DEFINITIONS, AMENDING SECTION 10.05.020 – REGULATIONS FOR BICYCLE OPERATION, ADDING SECTION 10.05.120 –

ORGANIZED, PLANNED OR STREET TAKE OVER, AND ADDING SECTION

10.05.130 – PENALTIES, OF THE CERES MUNICIPAL CODE

WHEREAS, Staff has received numerous community concerns and complaints regarding unlawful and unsafe bicycle riding in the streets of the City of Ceres; and

WHEREAS, the cyclists are riding their bicycles at vehicles, around vehicles and in-between vehicles; and

WHEREAS, Staff recognized the need to enhance the City Municipal Code regarding bicycles to allow officers to take more appropriate corrective action to hold violators, their parents and any organizers accountable.

NOW, THEREFORE, THE CITY OF CERES CITY COUNCIL DOES ORDAIN AS FOLLOWS:

SECTION 1. Section 10.05.000, Definitions, of Chapter 5, Bicycles, of Title 5, of the Ceres Municipal Code, is added to read as follows:

10.05.000 - Definitions

Bicycle is a device upon which a person may ride, propelled exclusively by human power, except as provided in Section 312.5 of the California Vehicle Code, through a belt, chain, or gears, and having one or more wheels. A person riding a bicycle is subject to the provisions of this code specified in Sections 21200 and 21200.5.

Electric bicycle is a bicycle unless otherwise defined in the California Vehicle Code. This code shall apply to all scooters as well as electric scooter type devices.

SECTION 2. Section 10.05.020, Regulations for bicycle operation, of Chapter 5, Bicycles, of Title 5, of the Ceres Municipal Code, is amended to read as follows:

10.05.020 – Regulations for Bicycle Operation

It shall be unlawful for any person to ride or operate a bicycle in the City in violation of the rules of the road as set forth herein:

A. No person shall operate a bicycle upon a sidewalk within the downtown Business District, or upon any sidewalks in front of schools, stores, or other buildings used for business or for public assembly.

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ATTACHMENT A
{CW126823.1}
B. Whenever a person operates a bicycle upon a sidewalk not expressly prohibited in subsection A, such person shall at all times yield the right -of-way to all pedestrians.

C. No bicycle on any sidewalk shall be used to carry more persons than the number for which it is designed and equipped.

D. Persons operating bicycles upon a sidewalk or other pedestrian facility shall not ride abreast with another bicycle except on paths or parts of public ways set aside for the exclusive use of bicycles.

E. No person shall park a bicycle upon any street, sidewalk, alley, or other public way other than immediately adjacent to the curb or edge of the traveled way or in a rack to support the bicycle or against a building, in such a manner as to afford the least obstruction to both pedestrian and vehicle traffic. When a rack is provided, no person shall park a bicycle, except in such a rack, on an adjacent street, sidewalk, alley or other public way within 200 feet from such rack.

F. No person shall operate a bicycle upon any playground or park or school ground, except on established paths or walkways, without permission of the person having supervision thereof.

G. No person operating a bicycle shall disregard any lawful order of a peace officer or city employee authorized to enforce City municipal codes.

H. It shall be unlawful for any person to willfully or maliciously remove, destroy, mutilate or alter the number of any bicycle frame licensed pursuant to this chapter.

It shall be unlawful for any person to remove, destroy, mutilate or alter any license or r egistration card during the time when such license or registration card is operative. Provided, however, that nothing in this chapter shall prohibit the stamping of numbers on the frames of bicycles on which no serial number can be found, or on which said number is illegible or insufficient for identification purposes.

I. It shall be unlawful for any person to ride a bicycle at any City sponsored events including but not limited to Street Faire, Christmas Tree Lane, and Sky’s the Limit, and any event where the streets or areas have been closed off for vehicle traffic.

SECTION 3. Section 10.05.120, Organized, Planned or Street Take Over, of Chapter 5, Bicycles, of Title 5, of the Ceres Municipal Code, is added to read as follows:

10.05.120 – Organized, Planned, or Street Take Over

A. It is unlawful for any person to participate in an organized, planned, or spontaneous street takeover event using a bicycle in a manner that demonstrates willful or wanton disregard for the safety of persons or property. This includes, but is not limited to, operating or riding a bicycle in violation of any applicable provision of ITEM 15

ATTACHMENT A
{CW126823.1}
this Code or the California Vehicle Code. A violation of this section shall constitute a misdemeanor pursuant to Chapter 02 of the City Code.

B. The organizer or promoter of an event that violates subsection (a) of this code may be charged with a misdemeanor pursuant to Section 19.02.030(a) of the City Code.

C. Any adult who participates in or encourages a violation of this section may be charged with a misdemeanor pursuant to Section 19.02.030(a) of the City Code.

SECTION 4. Section 10.05.130, Penalties, of Chapter 5, Bicycles, of Title 5, of the Ceres Municipal Code, is added to read as follows:

10.05.130 – Penalties

A. Any violation of this section unless defined otherwise is an infraction pursuant to Section 19.02.030(b) of the City Code.

B. In addition to any other penalties provided by this Code, the Chief of Police or his/her designee is hereby authorized to require any minor less than sixteen (16) years of age who operates a bicycle in violation of any of the Provisions of this Code, or of the California Vehicle Code, to attend a bicycle operator's school to be conducted under the supervision of the Chief of Police or his/her designee. Such school shall be for the purpose of educating the violator regarding proper operation of a bicycle and the provisions of law applicable to bicycles.

C. Any violation of this section can result in the bicycle being impounded by the Police Department for 30 days.

D. Any bicycle impounded by the Police Department within a 365-day period shall be subject to release and storage fees as follows:

1. First Impound - $250.00

2. Second Impound - $500.00

3. Third Impound - $750.00

4. Fourth Impound and any thereafter - $1,000.00

E. Regardless of whether the bicycle has been impounded under subsection D, any person operating a bicycle will be subject to progressive impound fees if they have had other bicycles impounded within the past 365 days.

SECTION 5. SEVERABILITY. If any section, subdivision, sentence, clause, phrase, or portion of this Ordinance is, for any reason, held invalid or unconstitutional by any court of competent jurisdiction, such portion shall be deemed a separate, distinct, and independent provision, a nd such holding shall not affect the validity of the remaining portions thereof.

SECTION 6. PUBLICATION AND EFFECTIVE DATE. This ordinance shall become ITEM 15

ATTACHMENT A
{CW126823.1}
effective thirty (30) days from and after its final passage and adoption, provided it is published in a newspaper of a general circulation at least within fifteen (15) days after its passage or a summary of the Ordinance is published in a newspaper of general circulation at least five (5) days prior to adoption and again at least fifteen (15) days after its passage.

SECTION 7. CERTIFICATION OF COUNCIL ADOPTION AND APPROVAL . This Ordinance was introduced at a regular meeting of the City Council held on the 10th day of November 2025, and passed and adopted as Ordinance No. 202 5-XXXX at a regular meeting of the City Council held on the 8th day of December 2025, by the following vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

ABSTAIN: Councilmembers:

APPROVED:

___________________________________
Javier Lopez, Mayor
ATTEST:

________________________________
Fallon Martin, City Clerk

APPROVED AS TO FORM:

________________________________
Nubia I. Goldstein, City Attorney
ITEM 15

ATTACHMENT B
TITLE 10 – VEHICLE AND TRAFFIC CODE

CHAPTER 05 - BICYCLES

10.05.000 - Definitions

Electric bicycle is a bicycle unless otherwise defined in the California Vehicle Code. This code shall apply to all scooters as well as electric scooter type devices.

10.05.020 - Regulations for bicycle operation.

It shall be unlawful for any person to ride or operate a bicycle in the City in violation of the rules of the road as set forth herein:

B. Whenever a person operates a bicycle upon a sidewalk not expressly prohibited in subsection A, such person shall at all times yield the right-of-way to all pedestrians.

C. No bicycle on any sidewalk shall be used to carry more persons than the number for which it is designed and equipped.

F. No person shall operate a bicycle upon any playground or park or school ground, except on established paths or walkways, without permission of the person having supervision thereof.

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ATTACHMENT B
G. No person operating a bicycle shall disregard any lawful order of a peace officer or city employee authorized to enforce City municipal codes.

H. It shall be unlawful for any person to willfully or maliciously remove, destroy, mutilate of alter the number of any bicycle frame licensed pursuant to this chapter. It shall be unlawful for any person to remove, destroy, mutilate or alter any license or registration card during the time when such license or registration card is operative.

Provided, however, that nothing in this chapter shall prohibit the stamping of numbers on the frames of bicycles on which no serial number can be found, or on which said number is illegible or insufficient for identification purposes.

I. It shall be unlawful for any person to ride a bicycle at any City sponsored events including, but not limited to, Street Faire, Christmas Tree Lane, and Sky’s the Limit, and any event where the streets or areas have been closed off for vehicle traffic.

(Ord. No. 2020-1056, § 2, 2-24-2020)

10.05.120 - Organized, Planned, or Street Take Over

B. The organizer or promoter of an event that violates subsection (a) of this code constitutes a misdemeanor pursuant to Chapter 02 of the City Code.

C. Any adult who participates in or encourages a violation of this section constitutes a misdemeanor pursuant to Chapter 02 of the City Code.

10.05.130 - Penalties

A. Any violation of this section unless defined otherwise is an infraction pursuant to Section 19.02.030(b) of the City Code.

B. In addition to any other penalties provided by this Code, the Chief of Police or his designee is hereby authorized to require any minor less than sixteen (16) years of age who operates a bicycle in violation of any of the provisions in this Code, or of the California Vehicle Code, to attend a bicycle operator’s school to be conducted under the supervision of the Chief of Police. Such school shall be for the purpose of educating the violator regarding proper operation of a bicycle and the provisions of law applicable to bicycles.

ITEM 15

ATTACHMENT B
C. Any violation of the section can result in the bicycle being impounded by the Police Department for 30 days.

D. Any bicycle impounded by the Police Department within a 365-day period shall be subject to release and storage fees as follows:

1. First Impound - $250.00

2. Second Impound - $500.00

3. Third Impound - $750.00

4. Fourth Impound and any thereafter - $1,000.00

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City of Ceres

NOTICE OF PUBLIC HEARING

NOTICE IS HEREBY GIVEN THAT THE CERES CITY COUNCIL will hold a public hearing in the Council Chambers at 2701 Fourth Street, Ceres, CA on November 10, 2025, at 6:00 p.m. or as soon as possible thereafter, to receive and consider all evidence and reports relative to adoption of the following: An Ordinance of the City Council of the City of Ceres amending and adding to Title 10 – Vehicle and Traffic Code, Chapter 05 – Bicycles, adding Section 10.5.19.000 – Definitions, amending Section 10.05.020 – Regulations for Bicycle Operation, adding Section 10.05.120 – Organized, Planned or Street Take Over, and adding Section 10.05.130 – Penalties, of the City of Ceres Municipal Code.

The Ceres City Council will consider an amendment to the Ceres Municipal Code to define bicycles, along with expanding the guidelines for bicycle operation, adding regulations regarding organized, planned or street take over and adding penalties for infractions. This amendment is being proposed in response to ongoing community concerns about public safety, particularly regarding reckless bicycle riding that poses hazards to both pedestrians and vehicle traffic throughout the city.

All interested parties are invited to attend said hearing and express opinions or submit evidence for or against proposal as outlined above.

Further information on the above hearing may be obtained or viewed at the office of the City Clerk, City Hall, 2220 Magnolia Street Ceres, CA 95307 or by telephone at (209) 538-5731.

If a citizen wishes to challenge the nature of the above actions in court, they may be limited to raising only those issues they or someone else raised at the public hearing described in the notice, or in written correspondence delivered to the City of Ceres, at, or prior to the public hearing.

/s/ Fallon Martin, City Clerk

Date Notice Posted: October 29, 2025
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ITEM 15

COUNCIL AGENDA REPORT

CITY COUNCIL
Javier Lopez, Mayor
James Casey, Dist.1
Rosalinda L. Vierra, Dist. 2
Cerina Otero, Dist. 3
Daniel A. Martinez, Dist. 4
MEETING DATE: December 8, 2025
TO: Mayor and City Council
FROM: Douglas D. Dunford, City Manager
CONTACT: Delilah Vasquez, Human Resources Director
[email protected], (209) 538-5772
SUBJECT:

Resolution No. 2025-XXX, Authorizing Consolidation of the City’s 457(b) Deferred Compensation Plans, Approving an
Administrative Service s Agreement for Governmental 457(b) Deferred Compensation Plan Between the City of Ceres and Nationwide, and Authorizing the City Manager to Execute the Agreement
RECOMMENDED COUNCIL ACTION:

Staff recommends the City Council adopt the Resolution, authorizing the consolidation of the City of Ceres’s two 457(b) deferred compensation plans into one plan and authorizing City of Ceres to execute the Administrative Service s Agreement for Governmental 457(b) Deferred Compensation Plan between the City of Ceres and Nationwide.

I. BACKGROUND:

The City of Ceres (“City”) currently administers two separate 457(b) deferred compensation plans: one with MissionSquare Retirement (formerly ICMA -RC), which primarily serves retired City employees; and one with Nationwide Retirements Solutions, which administers the plan offered to current employees. Both plans are voluntary retirement savings programs authorized under Secti on 457(b) of the Internal Revenue Code, allowing employees to defer a portion of their salary into tax -advantaged retired accounts.

The proposed Resolution authorizes the City to consolidate its two 457(b) deferred compensation plans into one plan. Further, the proposed resolution authorizes the City to enter into an Administrative Services Agreement with Nationwide for recordkeeping a nd administration of the consolidated plan.

ITEM 16
II. REASONS FOR RECOMMENDATION:

As part of an internal review of the City’s deferred compensation offerings, staff evaluated opportunities to streamline administration, reduce duplicative oversight, and improve overall plan efficiency. Consolidating the City’s 457(b) plans under Nationwide will reduce administrative complexity for City staff, improve consistency in service delivery, and eliminate the need to manage multiple vendor contracts and reporting requirements. In addition, Nationwide has offered reduced participant costs as part o f the consolidat ion, resulting in lower overall fees for employees.

The updated Administrative Service Agreement (ASA) from Nationwide reflects current regulatory requirements, modernizes plan administration language, and supports the streamlined approach by clearly defining roles and responsibilities between the plan provider and the City. No changes to benefit structure or investment options are anticipated beyond the reduction in participant fees.

Combining all assets into a single plan also allows the City to transition to the Freedom Pro+ platform, which provides enhanced investment management and oversight.

Through this platform, a third-party investment fiduciary, Creative Planning, will assist in maximizing investment performance while appropriately managing fund expenses. As part of the consolidation, participant fees will be reduced to . 05%, a significant decrease from the current range of 0 .70%-0.95%. The fixed account crediting rate will als o be reduced from 3.5% to 3.25%. All associated plan fees continue to be paid directly by participating employees, with no cost to the City.

III. FISCAL IMPACTS:

There is no fiscal impact to the City of Ceres. The 457(b) Deferred Compensation Plan is fully employee funded, and all administrative and investment-related fees are paid directly by participating employees. The consolidation of plan assets under Nationwide will result in reduced participant fees but does not create any new costs or financial obligations for the City.

IV. EXISTING POLICY / RELATIONSHIP TO THE STRATEGIC PLAN:

Consolidation of the plan supports the City’s Strategic Plan goals related to Organizational Sustainability and Fiscal Responsibility by ensuring that the City fulfills its long-term obligations to employees in a compliant and financially manageable way.

V. POLICY ALTERNATIVES:

The City could continue administering two separate 457(b) deferred compensation plans, one with MissionSquare Retirement and one with Nationwide. This option would avoid entering into the updated Administrative Service Agreement with Nationwide and would maintain the existing structure without consolidation.

VI. INTERDEPARTMENTAL COORDINATION:

N/A

ITEM 16
VII. PUBLIC PARTICIPATION:

N/A
VIII. ENVIRONMENTAL REVIEW:

N/A
IX. STEPS FOLLOWING APPROVAL:

Authorize the City Manager to execute the Administrative Services Agreement for Governmental 457(b) Deferred Compensation Plan with Nationwide.

Approved by: ______________________
Douglas D. Dunford,
City Manager
Attachments:

1. Attachment A – Resolution

2. Attachment B – Administrative Service Agreement

3. Attachment C – Contract Specifications Pages
ITEM 16
ITEM 16

ATTACHMENT A
RESOLUTION NO. 2025-XXX
AUTHORIZING CONSOLIDATION OF THE CITY’S 457(b) DEFERRED

COMPENSATION PLANS, APPROVING AN ADMINISTRATIVE SERVICE AGREEMENT FOR GOVERNMENTAL 457(b) DEFERRED

COMPENSATION PLAN BETWEEN THE CITY OF CERES AND

NATIONWIDE, AND AUTHORIZING THE CITY MANAGER TO EXECUTE

THE AGREEMENT

THE CITY COUNCIL
City of Ceres
WHEREAS, the City of Ceres currently administers two separate 457(b) deferred compensation plans: one with MissionSquare Retirement, serving primarily retired City employees; and one with Nationwide Retirement Solutions, which administers the plan offered to current employees; and
WHEREAS, both plans are voluntary retirement savings programs authorized under Section 457(b) of the Internal Revenue Code and allow employees to defer a portion of their salary into tax-advantaged retired accounts; and
WHEREAS, staff evaluated opportunities to streamline administration, reduce duplicative oversight, and improve overall plan efficiency; and WHEREAS, consolidating the City’s 457(b) plans under Nationwide will reduce administrative complexity for City staff, improve consistency in service delivery, and eliminate the need to manage multiple vendor contracts and reporting requirements; and WHEREAS, Nationwide has offered reduced participant costs as part of the consolidation, resulting in lower overall fees for employees.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Ceres does hereby authorize consolidation of the City’s 457(b) deferred compensation plans, approve an administrative service agreement for Governmental 457(b) Deferred Compensation Plan between the City of Ceres and Nationwide , and authorizes the City Manager to execute the agreement..

PASSED AND ADOPTED by the Ceres City Council at a regular meeting thereof held on the 8th day of December 2025, by the following vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

ABSTAIN: Councilmembers:
________________________________
Javier Lopez, Mayor
ATTEST:
_________________________________
Fallon Martin, City Clerk
ITEM 16
ITEM 16

ATTACHMENT B

Page 1 of 14 ends

ADMINISTRATIVE SERVICES AGREEMENT
FOR THE GOVERNMENTAL 457(b) DEFERRED COMPENSATION PLAN OF

CITY OF CERES

This Administrative Services Agreement (“Agreement”) is effective as of the date signed by the Plan Sponsor (the “Effective Date”) by and between Nationwide Retirement Solutions, Inc., a Delaware corporation (“Nationwide”) and an affiliate and subsidiary of Nationwide Financial Services, Inc. and City of Ceres, the Plan Sponsor (“Plan Sponsor”).

WHEREAS, Plan Sponsor, pursuant to and in compliance with the Internal Revenue Code of 1986, as amended (“Code”), established and sponsors the City of Ceres Deferred Compensation (“Plan”), a Section 457(b) Plan; and
WHEREAS, Plan Sponsor desires to have Nationwide continue to perform the non-discretionary recordkeeping and administrative services described in this Agreement for the Plan (“Administrative Services”); and
WHEREAS, Nationwide desires to provide such Administrative Services subject to the terms and conditions set forth in this Agreement.

NOW THEREFORE, Nationwide and Plan Sponsor desire to enter into this Agreement and abide by the terms therein.

1. DESIGNATION
a. Plan Sponsor designates Nationwide as a non-fiduciary, non-discretionary provider of Administrative Services for the Plan in accordance with the terms of this Agreement. b. Plan Sponsor represents that the selection and designation of Nationwide complies with any procurement statutes applicable to Plan Sponsor.
c. Any duties or services not specifically described herein or delegated in the Plan’s documents as being provided by Nationwide are the responsibility of Plan Sponsor. d. Services in addition to those in this Agreement or delegated in the Plan’s documents may be added by mutual agreement of Nationwide and Plan Sponsor.

2. ELIGIBLE EMPLOYER
Plan Sponsor has determined that it is an “eligible employer” and meets the requirements of Code Section 457(e)(1)(A).

3. TERM
This Agreement is effective until terminated in accordance with Section 21.

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ATTACHMENT B

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4. GENERAL
a. Plan Sponsor adopts Nationwide’s established policies and procedures with respect to the administration of 457(b) Plan on its administrative system. Nationwide and Plan Sponsor shall mutually agree to any procedures which require customization, e.g., loan procedures. b. Plan Sponsor acknowledges and agrees that Nationwide is not responsible for monitoring deferrals to other Section 457, 403(b), 401(a), and/or 414(h) plans, or any defined benefit plans referenced by the Code.
c. Plan Sponsor acknowledges and agrees that Nationwide is not responsible for monitoring inter- plan coordination between the Plan administered by Nationwide and any other plan which Plan Sponsor may have.
d. This Agreement does not require, nor will this Agreement be construed as requiring, Nationwide to exercise any discretionary control or authority over the Plan or the assets of the Plan. e. This Agreement does not require, nor shall this Agreement be construed as requiring, Nationwide to provide investment, legal, or tax advice to Plan Sponsor or to Plan participants.

5. PLAN SPONSOR RESPONSIBILITIES
a. Plan Sponsor is responsible for timely providing all information that Plan Sponsor and Nationwide mutually agree is necessary for Nationwide to perform the Administrative Services under this Agreement.
b. Plan Sponsor is responsible for timely providing updated information regarding Plan participants.
c. Plan Sponsor is responsible for ensuring that the provided information is accurate and complete.

Nationwide is entitled to rely exclusively on the information provided by the Plan Sponsor or the Plan Sponsor’s advisors, whether oral or in writing, and will have no responsibility to independently verify the accuracy of that information.
d. Plan Sponsor acknowledges that inaccurate or late information could result in tax penalties, participant/beneficiary legal claims, or both. Nationwide assumes no responsibility for, and will not have any liability for, any consequences that result from Nationwide’s inability to complete its work in the ordinary course of its business due to the failure of the Plan Sponsor to provide accurate and timely information to Nationwide.
e. Plan Sponsor agrees to be responsible for all maximum deferral limit testing for this Plan.

6. SERVICES RELATED TO PARTICIPANT ENROLLMENT
a. Plan Sponsor is responsible for determining employees eligible to participate in the Plan. b. Nationwide agrees to process the enrollment of employees eligible to participate in the Plan.

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ATTACHMENT B

Page 3 of 14 ends

c. Nationwide agrees to conduct enrollment meetings with Plan Sponsor’s employees in such number and manner as determined by the parties.
d. The Plan Sponsor agrees to allow and facilitate the periodic distribution of materials to Participants at the time and in the manner determined by the Plan Sponsor; provided, however, that all reasonable expenses associated with such distribution will be paid by Nationwide.

7. SERVICES WITH RESPECT TO PARTICIPANT PLAN ACCOUNTS AND ACCOUNT ACCESS a. Nationwide agrees to establish an account for each enrolled participant, beneficiary, and alternate payee of the Plan (for purposes of this Agreement only, hereinafter referred to as “Participants”).
b. For each Participant account, at a minimum, Nationwide will maintain the following information, if provided:
i. Name;
ii. Social Security number;
iii. Mailing address;
iv. Date of birth;
v. Current investment allocation direction;
vi. Contributions allocated and invested;
vii. Investment transfers;
viii. Benefit payments;
ix. Current account balance;
x. Transaction history since funding under the Agreement; xi. Contributions since funding under the Agreement;
xii. E-mail address;
xiii. Beneficiary designation, if applicable;
xiv. Benefit tax withholding information; and
xv. Such other information as agreed upon by the Plan Sponsor and Nationwide. c. Participants will have the unlimited ability to increase (within the limitations of Code Section 457(b)) or decrease contributions to the 457(b) Plan. Nationwide will process all requests to increase or decrease contribution amounts within five Business Days of receipt of the request, but the request cannot be effective until the earliest date permissible under the Code or, if later, ITEM 16

ATTACHMENT B

Page 4 of 14 ends

the date the contribution change can be processed by the Plan Sponsor given Plan Sponsor’s payroll processing schedule. The term “Business Day” means each Monday through Friday during the hours the New York Stock Exchange is open for business. No transactions can be completed on any Business Day after such time as the New York Stock Exchange closes. d. Participants will have the ability to exchange existing account balances, in full or in part, and to redirect future contributions from one available investment option to another on any Business Day subject to Nationwide policies and any applicable restrictions or penalties applied by the investment options.
e. Nationwide will provide reports to the Plan Sponsor within thirty days following the end of each calendar quarter reporting period summarizing the following:
i. All Participant activity that transpired during the reporting period; ii. Total contributions allocated to each investment or insurance option under the Plan; and iii. Total withdrawals by Participant. This report shall include the amount, type and date of withdrawal.
f. Nationwide will maintain, for a reasonable amount of time, the records necessary to produce any required reports. Plan Sponsor agrees that all related paper and electronic records remain the property of Nationwide.

8. SERVICES RELATED TO PLAN CONTRIBUTIONS
a. Plan Sponsor agrees to send all Plan contribution information and related funds to Nationwide on a timely basis that complies with all applicable legal requirements. b. Plan Sponsor will provide all contribution allocation information with respect to Participant accounts to Nationwide in a mutually agreed upon format. Contribution allocation instructions include direction via electronic sources.
c. Nationwide will allocate contribution amounts transmitted by Plan Sponsor to Participant accounts in accordance with the latest instructions from Participants or the Plan Sponsor (as applicable) on file with Nationwide, when such instructions are in good order (as defined below).
d. Nationwide agrees to post funds received in good order (as defined below) from Plan Sponsor in accordance with the separate funding arrangements between Plan Sponsor and Nationwide or any of its affiliates.
e. Plan Sponsor may send funds by wire transfer, through an automated clearinghouse, or by check in accordance with written instructions provided by Nationwide. Failure to follow the written instructions provided by Nationwide may result in delay of posting to Participant accounts. f. The term “in good order” means the receipt of required information by Nationwide, in a form deemed reasonably acceptable to Nationwide, with respect to the processing of a request or the completion of a task by Nationwide that reasonably requires information from a third party.

ITEM 16

ATTACHMENT B

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More specifically, Plan contributions and contribution allocation information must meet all of the following requirements in order to be deemed to be in good order:
i. All records must include the correct and complete Participant name, Social Security number (or other unique identifier), and the amount to be credited to the participant’s account(s); ii. The source of funds must be identified (e.g., 457(b) salary reduction, employer contribution);
iii. The Plan name and Plan number must be clearly identified; iv. Both the Participant allocation detail and the total contribution amount must be received, and these two totals must match each other; and
v. All Participants making or receiving a contribution must have an account established on the recordkeeping system.
g. If Nationwide determines that the contribution or allocation detail is not in good order (“NIGO”), Nationwide will notify the Plan Sponsor. After such notification, the parties will continue to try to resolve the NIGO status. If the parties do not achieve resolution, Nationwide will return the funds to the Plan Sponsor within thirty Business Days. Nationwide will not be liable for any delay in posting if the Plan Sponsor fails to send the funds representing contribution amounts or contribution allocation information in accordance with Nationwide’s instructions to the central processing site designated by Nationwide, or for any delay in posting that results from the receipt of funds and/or contribution allocation that Nationwide determines to be NIGO.

9. SERVICES WITH RESPECT TO DISTRIBUTIONS
a. Nationwide shall make all distributions in accordance with the Plan documents. b. Except as provided in subsection “d”, below, Nationwide shall make all distributions as directed by a Participant or the Plan Sponsor. Participants are responsible for selecting a form of payment from those available under the terms of the Plan and making all other elections regarding available distribution options.
c. All distributions will be made pro-rata from each of the Participant’s investment options and money sources unless directed otherwise by the Participant. d. Nationwide will provide notice and a distribution form to each Participant attaining age 73 (or such other age as determined by current law) or older in the current calendar year. The notice will inform the Participant that required minimum distributions (“RMD”) must begin no later than the April 1 of the calendar year following the later of attainment of age 73 (or such other age as determined by current law) or retirement (subject to the terms of the Plan). Nationwide will automatically distribute the RMD to the Participant if no direction is received from the Participant.

ITEM 16

ATTACHMENT B

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10. TAX REPORTING
a. For each Participant that has received a benefit payment, Nationwide shall furnish tax reporting forms. The forms will be provided in the manner and time prescribed by federal and state law. b. To the extent required by federal and state law, Nationwide will calculate and withhold from each benefit payment federal and state income taxes. Nationwide will report such withholding to the federal and state governments as required by applicable law. c. Plan Sponsor will be responsible for all tax reporting requirements for periods before the Effective Date of this Agreement, or after the termination date of this Agreement, unless otherwise agreed to in writing by the parties to this Agreement.

11. UNCLAIMED PROPERTY
Nationwide shall administer Participant and beneficiary unclaimed property funds, including but not limited to uncashed distribution checks and death claims, in accordance with Nationwide’s standard unclaimed property procedures.

12. SERVICES RELATED TO PARTICIPANT COMMUNICATION AND EDUCATION a. Communication and Education
i. Participant Statements

1. Participants will receive consolidated quarterly statements detailing their account activity and account balances for the Plan.

2. Nationwide agrees to deliver account statements (by U.S. mail or electronically) to Participants within thirty calendar days after the end of each calendar quarter. This timeframe is contingent upon Nationwide receiving fund returns from the mutual fund providers within four Business Days after the end of each quarter. b. Website
i. Participants may access the website via a secured internet site at www.nrsforu.com to review and make changes to their accounts. The website complies with applicable data protection and privacy laws. The website is the exclusive property of Nationwide. ii. Using this site, Participants may: (i) obtain information regarding their accounts, and (ii) conduct certain routine transactions with respect to their accounts. The Plan Sponsor authorizes Nationwide to honor instructions regarding such transactions that a Participant submits using the secure Internet site. Nationwide shall implement reasonable physical and technical safeguards to protect personal information made available on its Internet site. Such safeguards shall be no less rigorous than generally accepted industry practices. iii. The website is available twenty-four hours a day, except for routine maintenance of the system.

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iv. The Participant website experience will include access to an education library offering investment education. Content is delivered via multiple formats which can include short videos, print materials, and workshop modules.
c. INTERACTIVE VOICE RESPONSE SYSTEM
i. Nationwide will provide an interactive voice response (IVR) toll free telephone number, which shall be operative twenty-four hours per day, seven days per week, except for routine maintenance of the system.
ii. Participants will be able to conduct routine Plan transactions and obtain account balance information through the IVR.
iii. The Plan Sponsor authorizes Nationwide to honor Participant instructions, which may be submitted using the toll-free number, either through the IVR or a live representative. d. CUSTOMER SERVICE
Nationwide’s customer service representatives will be available toll-free to answer Participant questions and process applicable transactions between the hours of 8:00 a.m. and 11:00 p.m.

Eastern Time each Monday through Friday, and between the hours of 9:00 a.m. and 6:00 p.m.

Eastern Time each Saturday, except for certain holidays as dictated by the New York Stock Exchange holiday trading schedule.
e. PARTICIPANT ENGAGEMENT PROGRAM
i. Nationwide will provide a personalized communication program (Participant Engagement Program or “PEP”) designed to engage Participants in retirement planning and motivate them to take action to improve their financial future. The program may include deliv ery methods such as email, digital targeting, social targeting, and Direct Mail. ii. Use of Third -Party Marketing Firm: Plan Sponsor understands that Nationwide may use a third-party marketing firm to provide the PEP, that the use of a third -party marketing firm may be essential to provide the PEP due to its personalized features, and that such a program cannot be offered without such use. Nationwide shares Participant data with the marketing firm to allow it to target the appropriate retirement plan messages to each Participant based on the Participant’s individual characteristics, demogra phics, and behaviors while considering the Participant’s preferences for accessing information, electronically or otherwise, for more impactful delivery.
iii. Sharing of Participant Data: To facilitate the personalized communication program, Plan Sponsor approves the sharing of data with a third-party marketing firm. Participant data will only be shared with the third -party marketing firm for Plan -related purposes. Only third - party marketing firms that comply with all applicable state and federal privacy laws, including the relevant provisions of the Gramm -Leach-Bliley Act, will be utilized. All Participant data will be secured and protected at all times to avoi d unauthorized access, and the third-party marketing firm must agree to abide by all current applicable legal and industry-standard data security and privacy requirements.

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13. SERVICES RELATED TO INVESTMENT OPTIONS
a. Plan Sponsor acknowledges that it has exercised its fiduciary duties in selecting the Plan’s funding vehicles and the applicable investment line-up under such funding vehicles. b. Plan Sponsor agrees to accept the terms and conditions of the annuity contracts, mutual funds, any other investment products, and investment advice agreements after being provided with a copy of same.
c. With respect to funding vehicles that engage an independent investment advisor to establish and maintain the investment line-up, Plan Sponsor agrees that failure to follow the independent investment advisor’s recommendation in accordance with the terms of its agreement with the independent investment advisor will cause Plan Sponsor to become the investment fiduciary for the Plan.
d. Nationwide agrees to accept contributions to the Plan for investment in the investment options selected by the Plan Sponsor, a product’s independent investment advisor, or other responsible Plan fiduciary in its sole discretion and agreed to by Nationwide.

14. COMPENSATION
a. Nationwide or its affiliates will receive both asset-based compensation as specified in the variable annuity contract and any mutual fund services fee payments attributable to the Plan’s investment line-up, if any.
b. The Plan Sponsor acknowledges that Nationwide and its affiliates receive payments in connection with the sale and servicing of investments allocated to participant Plan accounts (“Investment Option Payments”). The Investment Option Payments include mutual fund service fee payments as described in detail at www.nrsforu.com, and other payments received from investment option providers. As compensation for the services provided in this Agreement, the parties agree that Nationwide and its affiliates are entitled to receive the Investment Option Payments. In addition to the foregoing, the parties acknowledge and agree that Nationwide or its affiliates may receive revenue associated with annuity contracts offered by Nationwide Life Insurance Company (“NLIC”), as well as fees associated with specific services or products. c. To the extent offered under the Plan, in addition to the above described fees, Nationwide shall also receive fees with respect to a Participant’s use of Participant loan administration, the Self- Directed Brokerage Account (“SDBA”), and managed account services as follows:
i. Loans – If requested by the Plan Sponsor and permitted under the terms of the Plan, Nationwide will assist the Plan Sponsor in processing Participant loan requests pursuant to Participant loan administrative procedures approved by the Plan Sponsor and Nationwide. All Participant loan fees are governed by Nationwide’s Plan Loan Procedures document, a copy of which has been provided to the Plan Sponsor. ii. Self-Directed Brokerage Account – The Plan offers an SDBA investment option for qualifying participants in the Plan. Initial and annual administrative fees may be charged ITEM 16

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as outlined in the separate fee agreement for the SDBA that will be provided to each Participant by Nationwide.
iii. Managed account services - Managed account services are offered by Morningstar or Nationwide Investment Advisors (“NIA”), an affiliate of Nationwide, and the Plan Sponsor must execute a separate agreement with Morningstar or NIA if the Plan Sponsor wants to add managed account services to the Plan. Only participants who choose to utilize the managed account service are assessed fees. Such fees are authorized in a separate agreement between the participant and Morningstar or NIA and are assessed pursuant to the terms and conditions of such agreement.

Fees related to participant loans, the SDBA and managed account services are in addition to the fees in Sections 14.a. and b.
d. Plan Sponsor may request Nationwide and/or its affiliates to provide additional services not described in this Agreement by making such a request in writing, which Nationwide may decide to perform for compensation to be negotiated by the parties prior to the commencement of the additional services.

15. FRAUD
a. Nationwide will investigate suspected fraud in accordance with its standard procedures. b. Nationwide will report any fraud that is confirmed after performing its investigation to Plan Sponsor.
c. Nationwide will work with Plan Sponsor to determine the appropriate action to mitigate or rectify any discovered fraud.
d. If Nationwide suspects fraud with respect to an ACH transfer, Plan Sponsor agrees that Nationwide may issue a physical check to the Participant instead.

16. ASSIGNABILITY AND PROVISION OF SERVICES
a. Excepted as otherwise specifically provided for in this Agreement, Plan Sponsor acknowledges that the Administrative Services under this Agreement will be performed by Nationwide or one of its affiliates.
b. Except as provided for in Subsection “a”, above, no party to the Agreement will assign the performance of services without the express written consent of the other party, which consent shall not be unreasonably withheld. Unless agreed to by the parties, such assignment shall not relieve any party to this Agreement of any duties or responsibilities herein. This provision does not restrict Nationwide’s right to delegate certain services to agents, affiliates, and vendors.

17. CONFIDENTIALITY
a. Nationwide agrees to maintain all information obtained from or related to all Plan Participants as confidential.

ITEM 16

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b. Plan Sponsor authorizes Nationwide to disclose Plan and employee information to its agents, affiliates, vendors, brokers, registered representatives, and professional advisors (such as attorneys, accountants and actuaries) to enable or assist them in the performance of their duties hereunder and other plan-related activities.
c. Plan Sponsor agrees to allow the periodic distribution to its employees of materials prepared by Nationwide regarding products and services offered by Nationwide, or its affiliates, which Nationwide reasonably believes would be beneficial to such Plan Participants. d. Except as provided for in Sections 12(e) and 17(b), Plan Sponsor agrees that Plan and Participant information may also be used or disclosed by Nationwide to other third parties pursuant to a written authorization signed by Plan Sponsor. e. Notwithstanding anything to the contrary contained herein, it is expressly understood that Nationwide retains the right to use any and all information in its possession in connection with its defense and/or prosecution of any litigation that may arise in connection with the Agreement, the investment arrangement funding the Plan, or the Plan; provided, however, in no event will Nationwide release any information to any person or entity except as permitted by applicable law.

18. INDEMNIFICATION
a. Nationwide agrees to indemnify, defend and hold harmless Plan Sponsor, its officers, directors, agents, and employees from and against any loss, damage or liability assessed against Plan Sponsor or incurred by Plan Sponsor arising out of or in connection with any claim, action, or suit brought or asserted against Plan Sponsor alleging or involving Nationwide’s non- performance of the provisions of the Agreement under Nationwide’s exclusive control, or negligence or willful misconduct in the performance of its services, duties and obligations under the Agreement. In addition, Nationwide represents, warrants and covenants that the indemnification in this paragraph is enforceable under applicable law and that Nationwide will not assert a position contrary to such representation in any judicial or administrative proceeding.
b. To the extent not prohibited by state law, Plan Sponsor agrees to indemnify, defend and hold harmless Nationwide, its officers, directors, agents, and employees from and against any loss, damage or liability assessed against Nationwide or incurred by Nationwide arising out of or in connection with any claim, action, or suit brought or asserted against Nationwide alleging or involving Plan Sponsor’s non-performance of the provisions of the Agreement under Plan Sponsor’s exclusive control, or negligence or willful misconduct in the performance of its duties and obligations under this Agreement. In addition, Plan Sponsor represents, warrants and covenants that the indemnification in this paragraph is enforceable under applicable law and that Plan Sponsor will not assert a position contrary to such representation in any judicial or administrative proceeding.

19. PARTIES BOUND
This Agreement and the provisions thereof shall be binding upon and shall inure to the benefit of the successors and assigns of Nationwide and Plan Sponsor. This Agreement shall be enforceable ITEM 16

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only by the parties, not by Plan Participants or other third parties, and is intended to create no third-party beneficiaries.

20. MODIFICATION
a. The parties intend this writing to be both the final expression of the Agreement between the parties and a complete statement of the terms of the Agreement. Notwithstanding anything contained herein to the contrary, the parties may amend the Agreement from time to time and as mutually agreed upon. Except as otherwise provided herein, no modification of the Agreement will be effective unless and until such modification is evidenced by a writing signed by both parties.
b. Notwithstanding the above, if Nationwide determines that an amendment to the Agreement is necessary that affects more than one plan sponsor and this change is communicated in writing to all affected plan sponsors, Nationwide reserves the right to implement the amendment on a prospective basis for any plan whose plan sponsor fails to respond to the request for written approval of the amendment in a timely fashion. Plan Sponsor hereby approves all such amendments unless a proper and timely response is made to Nationwide regarding any Agreement modification communicated to Plan Sponsor.

21. TERMINATION
a. Either the Plan Sponsor or Nationwide may terminate the Agreement for any reason upon providing 120 days written notice to the other party.
b. In the event either party fails to perform any or all of its obligations as defined in the Agreement, the non-defaulting party shall give the defaulting party written notice, specifying the particulars of the default. If such default is not cured within sixty days from the date in which notice of default is given, the non-defaulting party may terminate the Agreement upon 60 days written notice to the defaulting party.
c. Provision of such written notice of termination by Plan Sponsor to Nationwide does not relieve the Plan Sponsor of any termination requirements that may be associated with specific investment options.
d. Plan Sponsor further acknowledges and agrees that the Plan is responsible for any investment product liquidation fees, if applicable, and that neither Nationwide nor any of its affiliates assumes liability for any such fees.
e. Upon the effective date of termination of this Agreement the following shall occur:
i. Nationwide will no longer accept contributions to the Plan except by agreement of the parties.
ii. Nationwide will:

1. Provide Plan Sponsor, or such other entity as the Plan Sponsor may designate in writing, with a copy of all Participant records in an electronic format and within a time frame as mutually agreed upon between Nationwide and Plan Sponsor.

ITEM 16

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2. Transfer any periodic distribution amounts and schedules, continuing loan repayments, or other ongoing Participant transactional activity to the Plan Sponsor, or such other entity as the Plan Sponsor may designate in writing, in accordance with the time frame agreed to by the parties for the delivery of Participant records.

3. Transfer all Plan assets under its control to the Plan Sponsor or to such other entity as the Plan Sponsor may designate in writing in accordance with the funding arrangement terms. Nationwide agrees to provide a final accounting of all Plan assets for which Nationwide provides recordkeeping.

22. CIRCUMSTANCES EXCUSING PERFORMANCE
a. Neither party to the Agreement will be in default by reason of failure to perform in accordance with its terms if such failure arises out of causes beyond their reasonable control and without fault or negligence on their part. Such causes may include, but are not limited to, Acts of God or public enemy, acts of the government in its sovereign or contractual capacity, severe malware or cyber-attack, fires, floods, epidemics, quarantine or restrictions, freight embargoes, and unusually severe weather.
b. Neither party will be responsible for performing all of that portion of services precluded by the foregoing events for such period of time as Plan Sponsor or Nationwide are precluded from performing such services in the normal course of business. Neither Nationwide nor Plan Sponsor will be liable for lost profits, losses, damage or injury, including without limitation, special or consequential damages, resulting in whole or in part from the foregoing events. c. “Acts of God” are defined as acts, events, happenings or occurrences due exclusively to natural causes and inevitable accident or disaster, exclusive from all human intervention.

23. NO WAIVER
The failure of either party to enforce any provision of the Agreement will not be construed as a waiver of that provision or of any other provision in the Agreement. Either party may, at any time, enforce a provision previously unenforced, unless a modification to the Agreement has been executed that makes such provision unenforceable.

24. SEVERABILITY
Any provision of the Agreement which is prohibited or unenforceable in any jurisdiction where performance is required will be ineffective to the extent such provision is prohibited or unenforceable without invalidating the remaining provisions. Any prohibited or unenforceable provision in any one jurisdiction will not prohibit or render unenforceable such provision in any other jurisdiction.

25. AUTHORIZED PERSONS
Plan Sponsor will furnish a list to Nationwide (and from time to time whenever there are changes therein) of the individuals authorized to transmit instruction to Nationwide concerning the Plan and/or assets in the Plan, and written direction regarding the form of such instructions.

ITEM 16

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Page 13 of 14 ends

26. COMPLIANCE WITH LAWS
Both Plan Sponsor and Nationwide agree to comply, in their respective roles under this Agreement, in all material respects with all applicable federal laws and regulations as they affect the Plan and the administration thereof. Nothing contained herein will be construed to prohibit either party from performing any act or not performing any act as either may be required by statute, court decision, or other authority having jurisdiction thereof.

27. SURVIVAL OF REPRESENTATIONS, WARRANTIES, INDEMNITY, AND CONFIDENTIALITY a. Notwithstanding anything to the contrary, any representations and warranties contained herein will survive termination of the Agreement for the full period of any applicable statute of limitations that may apply to the Agreement. Further, the party making any representation or warranty shall notify the other party in writing within five business days of any representation or warranty that is no longer valid.
b. Notwithstanding anything to the contrary, any indemnity provisions contained herein will survive the termination of the Agreement for the full period of any applicable statute of limitations that may apply to the Agreement.
c. Notwithstanding anything to the contrary, any confidentiality provisions contained herein will survive the termination of the Agreement for the full period of any applicable statute of limitations that may apply to the Agreement.

28. PRIVITY OF CONTRACT
Plan Sponsor acknowledges and agrees that Nationwide and Participants of the Plan have no privity of contract with each other.

29. APPLICABLE LAW AND VENUE
This Agreement will be construed in accordance with the laws operating within the State of California.

30. ATTORNEY’S FEES
Each party agrees that in the event of a claim, arbitration, or lawsuit filed by a party to this Agreement, each party will be responsible for its own attorneys’ fees and/or any costs or expenses related to the bringing or defense of any such claim, arbitration, or lawsuit.

31. HEADINGS
The headings of articles, paragraphs, and sections are included for convenience only and will not be considered by either party in construing the meaning of the Agreement.

32. NOTICES
All notices and demands to be given by one party to another must be given by certified United States mail, addressed to the party to be notified or upon whom a demand is being made, at the ITEM 16

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addresses set forth in this Agreement or such other place as either party may, from time to time, designate in writing to the other party. Notice will be deemed received on the earlier of: (1) three days from the date of mailing, or (2) the day the notice is actually received by the party to whom the notice was sent.

If to Nationwide: Nationwide Retirement Solutions, Inc.

Three Nationwide Plaza, 3-06-302
245 N High Street
Columbus, Ohio 43215

If to Plan Sponsor: City of Ceres
Attn: Delilah Vasquez
2720 Second Street
Ceres, CA 95307
By executing this agreement, Plan Sponsor represents and warrants that it is an “eligible employer,” as that term is defined in Code Section 457(e)(1)(A) which means “a State, political subdivision of a State, and any agency or instrumentality of a State or political subdivision of a State.” IN WITNESS WHEREOF, the parties hereto have executed this Agreement effective as of the date signed by the Plan Sponsor.

Nationwide Retirement Solutions, Inc.

By:

Name: __________________________________

Title: ___________________________________

Date: ___________________________________

City of Ceres______________________________
Plan Sponsor

By:

Name: __________________________________

Title: ___________________________________

Date: ___________________________________

ITEM 16

ATTACHMENT C
NRB-0105AO.1 (Standard) (12/2010)

CONTRACT SPECIFICATIONS PAGES
Contract Owner: City of Ceres 457(b) Deferred Compensation Plan for the exclusive benefit of its Participants and their beneficiaries.

Contract Owner’s Address: 2720 Second Street
Ceres, CA 95307
Attn: Delilah Vasquez, HR Director
Nationwide’s Address: Nationwide Life Insurance Company 5900 Parkwood Road
Dublin, Ohio 43016
Attn: VP - Public Sector Finance and Actuarial
Plan: City of Ceres 457(b) Deferred Compensation Plan
Record-Keeper: N/A
Variable Account(s): The Deferred Compensation Variable Account Processing of Purchase Payments: Purchase Payments will be applied to the Contract by Nationwide within five(5) business days of receipt in good order.

Contract Expenses:

Variable Account Charge: Maximum Charge 0.50%
For Sub-Accounts Identified as Investor Destinations on the Application 0.50%
For Sub-Accounts Identified as Select Spectrum on the
Application 0.50%
For Sub-Accounts Identified as Passage on the Application

0.50%
Minimum Charge Reduction For Plans with Assets Between
$10,000,001 and $25,000,000* 0.105%
Minimum Charge Reduction For Plans with Assets Between
$25,000,001 and $50,000,000* 0.15%
Minimum Charge Reduction For Plans with Assets Between
$50,000,001 and $100,000,000* 0.15%
Minimum Charge Reduction For Plans with Assets Between
$100,000,000 and greater* 0.15%
ITEM 16

ATTACHMENT C
NRB-0105AO.1 2 (Standard) (12/2010)
*For purposes of calculating the maximum charge, Plan assets are evaluated at least annually and no later than December 31st of each calendar year. The reductions are non-cumulative, that is each break -point is a total break -point, so the charge reduction is not added in addition to any lower level break-point reductions. If a break -point threshold is reached, Nationwide will apply the charge reduction within a reasonable period of time, but not later than six (6) months after the date assets are evaluated.

Contract Maintenance Charge: N/A

Participant Account Charge: N/A

Fixed Account: Available

Exchange/Transfer Limitation Elected: N/A

Guaranteed Minimum Fixed Account Interest Rate: 0.5%
ITEM 16

COUNCIL AGENDA REPORT

CITY COUNCIL
Javier Lopez, Mayor
James Casey, Dist.1
Rosalinda L. Vierra, Dist. 2
Cerina Otero, Dist. 3
Daniel A. Martinez, Dist. 4
MEETING DATE: December 8, 2025
TO: Mayor and City Council
FROM: Douglas D. Dunford, City Manager
CONTACT: Delilah Vasquez, Director of Human Resources
[email protected], (209) 538-5772
SUBJECT:

Resolution No. 202 5-XXX, Ratifying the Appointment of Vanessa Portillo to the Position of Finance Director, Approving an Employment Agreement, and Authorizing the City Manager to Execute the Agreement
RECOMMENDED COUNCIL ACTION:

Staff recommends the City Council adopt the resolution ratifying the appointment of Vanessa Portillo to the position of Finance Director and approving the employment agreement.

I. BACKGROUND:

The Finance Director position has been vacant since November 7, 2025. The recruitment process to fill the position has concluded and Vanessa Portillo has been selected to fill the position. Ms. Portillo was selected from a pool of highly qualified applicants and has undergone an interview process with an interview panel, a follow-up interview with the City Manager and checking references. Ms. Portillo has been offered the position pending ratification of the appointment and approval of the employment agreement by the City Council.

II. REASONS FOR RECOMMENDATION:

Ms. Portillo comes to the City of Ceres ( “Ceres”) with extensive experience in Finance and is currently the Chief of Fiscal Operations for Stanislaus County. Ms. Portillo is currently responsible for overseeing approximately 1 1 employees in the Stanislaus County Finance and Operations Division and a department budget of $253 million. Ms.

Portillo’s professional history includes experience as Director of Finance for the City of Los Banos , Stanislaus Council of Governments and City Manager for the City of Livingston. She also possesses her International County/City Management Association (ICMA) Certificate.

ITEM 17
Based on Ms. Portillo’s professional work experience and educational background, staff is recommending the appointment of Ms. Portillo as Finance Director for the City of Ceres.

The negotiated employment agreement is included with this staff report as attachment 2.

Staff recommends Council’s ratification of the appointment pursuant to Ceres Municipal Code Section 2.03.040. The salary range is set at range J89, Step 2 ($14,293.23 per month)
III. FISCAL IMPACTS:

Funding for this position is included in the current budget.

IV. EXISTING POLICY / RELATIONSHIP TO THE STRATEGIC PLAN:

The services provided by Ms. Portillo will assist the City in accomplishing its goals of enhanced government operations to provide quality services to meet community needs.

V. POLICY ALTERNATIVES:

N/A
VI. INTERDEPARTMENTAL COORDINATION:

N/A
VII. PUBLIC PARTICIPATION:

This item was included in the a genda posting and the public will have the opportunity to comment on this item at the City Council meeting.

VIII. ENVIRONMENTAL REVIEW:

N/A
IX. STEPS FOLLOWING APPROVAL:

The City Manager will execute the agreement.

Approved by: ____________________
Douglas D. Dunford
City Manager

Attachments:

1. Attachment A – Resolution

2. Attachment B – Employment Agreement
ITEM 17

ATTACHMENT A
RESOLUTION NO. 2025-XXX

RATIFYING THE APPOINTMENT OF VANESSA PORTILLO TO THE

POSITION OF FINANCE DIRECTOR, APPROVING AN EMPLOYMENT

AGREEMENT, AND AUTHORIZING THE CITY MANAGER TO

EXECUTE THE AGREEMENT

THE CITY COUNCIL
City of Ceres

WHEREAS, as stated in Section 2.03.040, of the Ceres Municipal Code, the City Manager has the authority to appoint all Department Heads , including the Director of Finance, subject to ratification by the City Council; and

WHEREAS, the City Manager has appointed Vanessa Portillo to the position of Finance Director; and

WHEREAS, City staff have negotiated an Employment Agreement with Vanessa Portillo, which sets forth the rights, duties, and obligations of the parties, a copy of which Employment Agreement is attached hereto as Exhibit “A” and incorporated herein by reference; and

WHEREAS, the City Council has reviewed the terms and conditions of said Employment Agreement and finds the terms and conditions contained therein are reasonable and in the best interest of the City of Ceres; and

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Ceres ratifies the appointment of Vanessa Portillo to the position of Finance Director, approves an employment agreement, and authorizes the City Manager to execute the agreement.

PASSED AND ADOPTED by the Ceres City Council at a regular meeting thereof held on the 8th day of December 2025, by the following vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

ABSTAIN: Councilmembers:

________________________________
Javier Lopez, Mayor
ATTEST:

_________________________________
Fallon Martin, City Clerk
ITEM 17
ITEM 17

ATTACHMENT B

4923-8987-3020, v. 2
1 EMPLOYMENT AGREEMENT

FOR THE FINANCE DIRECTOR

This Employment Agreement (“Agreement”) is made and entered into by and between the City of Ceres, State of California, a municipal corporation, hereinafter referred to as “EMPLOYER” or “City,” and Vanessa Portillo, hereinafter referred to as "EMPLOYEE.” EMPLOYER/City AND EMPLOYEE are collectively referred to herein as the “Parties” , and each may individually be referred to as a “Party”.

WITNESSETH:

WHEREAS, EMPLOYER desires to provide certain benefits, establish conditions of employment, and set the working conditions of EMPLOYEE, which are intended to:

1. Secure and retain EMPOLYEE’s services and provide an inducement for EMPLOYEE to continue employment with the City;

2. Enable EMPLOYEE’S full productivity by setting forth the terms and conditions of employment;

3. Establish the process by which either EMPLOYEE or EMPLOYER may terminate this Agreement and EMPLOYEE’S services.

WHEREAS, EMPLOYEE has agreed to accept employment as Finance Director for the City of Ceres pursuant to the terms and conditions of this Agreement , and EMPLOYER has agreed to employ EMPLOYEE as Finance Director pursuant to the terms of this Agreement.

NOW THEREFORE, in consideration of the mutual covenants contained herein, EMPLOYER and EMPLOYEE agree as follows:

SECTION I – EMPLOYMENT
EMPLOYEE is hereby appointed t o serve as the City’s Finance Director. EMPLOYEE shall serve as an "at-will employee" at the pleasure of the City Manager, who, pursuant to Chapter 4, Section 2.03.040 of the Ceres Code of Ordinances, has the authority to appoint, remove, promote, and demote EMPLOYEE, subject to ratification by the City Council.

EMPLOYEE understands and agrees that the terms of EMPLOYEE’S employment are governed solely by this Agreement. EMPLOYEE further understands and agrees that this Agreement does not confer a property interest in EMPLOYEE’s employment or guarantee employment for any specified term, and that EMPLOYEE is not entitled to due process for any disciplinary action, including termination, under state or federal law, judicial precedent, or the EMPLOYER’S personnel policies and rules , except as expressly provided in this Agreement.

ITEM 17

ATTACHMENT B

4923-8987-3020, v. 2
2 EMPLOYEE agrees to devote all of EMPLOYEE’S productive time, ability, and attention to the EMPLOYER’S business to the extent necessary to perform EMPLOYEE’S duties and responsibilities in a manner satisfactory to the City. During the Term of the Agreement, as defined in Section V, EMPLOYEE shall not hold secondary employment or engage in activities which conflict with, or present the appearance or possibility of conflicting with, EMPLOYER’S legitimate business interests. As such, EMPLOYEE agrees to notify the City Manager or the City Council in writing if EMPLOYEE wishes to accept secondary employment. EMPLOYER shall determine whether there is an actual conflict, potential, or apparent conflict with the performance of EMPLOYEE’S duties or with the best interest of EMPLOYER. EMPLOYEE has the right to volunteer for any nonprofit organizations as EMPLOYEE deems appropriate, provided that such volunteer activities do not interfere with EMPLOYEE’S duties or the business interests of EMPLOYER.

SECTION II - DUTIES
EMPLOYEE shall perform those duties set forth in the job description attached hereto for the position of Finance Director, in the duties prescribed in Chapter 11 of the Ceres Code of Ordinances, and any other duties as may be assigned from time to time by the City Manager.

Unless otherwise specified in this Agreement, EMPLOYEE shall be bound by all the policies, rules, and regulations of the City now in force and applicable to EMPLOYEE’S position, as well as any such policies, rules, or regulations implemented in the future and brought to EMPLOYEE’S attention. EMPLOYEE shall faithfully observe and abide by all such policies, rules, and regulations . No policy, rule, or regulation shall alter, modify, or revoke EMPLOYEE’S at-will status or any other provision of this Agreement.

SECTION III – HOURS OF WORK
The Parties acknowledge that EMPLOYEE’S position is an exempt executive management role, which frequently requires more than a standard forty (40) hour week to deliver the expected level of professional service. It is further recognized that , to properly fulfill the duties and responsibilities of the position, EMPLOYEE will devote a considerable amount of time outside normal office hours to the business of the City. Accordingly, while EMPLOYEE shall spend sufficient hours on site to perform the duties of th e position, EMPLOYEE has discretion over work schedule and location and will not be required to maintain a strict forty (40) hour -per-week on-site presence at City Hall. Employee may occasionally be absent from City Hall during normal business hours as reasonabl y appropriate. Notwithstanding the foregoing, the City Manager retains the authority to adjust or restrict EMPLOYEE’s discretion regarding work schedule and work location whenever, in the City’s best interest, such adjustments are necessary.

SECTION IV- SALARY
EMPLOYEE’s salary shall be set at Range J89, Step 2 ($14,293.23 per month) as provided in the City of Ceres Class Titles and Salary Ranges Schedule for the period of July 6, 2025, through June 30, 2026.

ITEM 17

ATTACHMENT B

4923-8987-3020, v. 2
3 EMPLOYER agrees that EMPLOYEE’S compensation for subsequent fiscal years will be reconsidered as part of the budgetary process for those Fiscal Years. Step increases shall be considered on an annual basis in accordance with the City’s Personnel Rules. Any step increases granted shall not modify or affect any other term of this Agreement.

SECTION V – TERM, TERMINATION AND SEVERANCE PAY
A. Term. The term of this Agreement shall be three (3) years from the Effective Date set forth in Section VII I (“Term”), unless terminated earlier pursuant to this Section V. The City Manager, in his or her sole discretion, may extend the Term for one (1) year. No later than three (3) months prior to the expiration of the Term, the City Manager shall provide EMPLOYEE with written notice regarding whether the Term will be extended . This Agreement shall become effective upon its Effective Date and upon the adoption of a resolution of the City Council approving this Agreement and execution by the Parties.

B. Voluntary Resignation. EMPLOYEE may resign at any time and agrees to give the City at least thirty (30) calendar days’ advance written notice of the effective date of resignation, unless the Parties otherwise agree in writing. If EMPLOYEE retires from full- time public service with the City, EMPLOYEE shall provide ninety (90) calendar days’ advance written notice. EMPLOYEE’S actual retirement date will be mutually established between the Parties. During the notice period, unless otherwise set forth in this Agreement, all rights and obligations of the Parties under this Agreement shall remain in full force and effect. Promptly following the effective date of resignation or retirement, the City shall pay EMPLOYEE all salary and benefit amounts accrued and owed under this Agreement , pursuant to the City’s normal payroll practices . In the event of a voluntary separation, Employee shall not be entitled to severance pay pursuant to Section V(C).

C. Employer Termination/Severance. EMPLOYER may terminate this Agreement and EMPLOYEE’S employment with the City at any time, with or without cause or prior notice. EMPLOYEE shall be provided with written notice stating the reason(s) for such termination. In the event of EMPLOYEE’s termination, EMPLOYER shall pay EMPLOYEE all wages due and owing, as well as accrued and unused vacation for all hours worked through EMPLOYEE’S last day of employment, in accordance with standard City practice, including its payroll practices, federal and state law and this Agreement.

In the event EMPLOYEE’S employment and this Agreement are terminated by the EMPLOYER without cause, at a time when EMPLOYEE is willing and able to perform the duties required under this Agreement, EMPLOYER agrees, subject to the limitations below, to pay EMPLOYEE a lump sum cash payment (“Severance”) equal to three (3) months’ aggregate salary, increased by two (2) weeks for each full calendar year of service in the position of Finance Director, subject to the restrictions below. The total Severance payment will not exceed six (6) months’ aggregate salary. For purposes of this Section V, “aggregate salary” means the EMPLOYEE’S regular gross monthly salary on the date of termination, less all mandatory statutory withholdings.

ITEM 17

ATTACHMENT B

4923-8987-3020, v. 2
4 Any Severance payable under this Agreement shall be contingent on EMPLOYEE’S execution of a release of all claims in a form satisfactory to EMPLOYER. Such severance is also subject to the restrictions of Government Code section 53260 , which provides that the maximum cash severance payment an employee may receive shall be the lesser of (a) the number of months left on the term of the contract, or (b) eighteen (18) months, with the applicable number of months to be multiplied by the employee’s monthly salary .

Additionally, any cash settlement related to the termination of this Agreement received by EMPLOYEE from EMPLOYER shall be fully reimbursed to EMPLOYER if EMPLOYEE is convicted of a crime involving an abuse of office or position while employed by EMPLOYER, pursuant to Government Code section 53243.2. Any Severance pay shall be paid in the same manner as other employees and pursuant to the City’s normal payroll practices unless otherwise agreed to by EMPLOYER and EMPLOYEE.

Notwithstanding the foregoing, in the event EMPLOYEE’S employment is terminated “for cause” EMPLOYER shall have no obligation to pay the Severance , nor any portion of it, but shall only be obligated to provide all wages due and owing to EMPLOYEE at the time of termination, including any accrued unused vacation , promptly in accord with standard City practice. For purposes of this Agreement, “cause” shall mean a termination based on EMPLOYEE’S conduct that would constitute grounds for disciplinary action under Rule

13.2 of the City’s Personnel Rules, or any successor or amended rule.

If EMPLOYEE’s termination is based on charges of misconduct that publicly stigmatize EMPLOYEE’s reputation or impairs their ability to earn a living, or might damage their standing in a community (“stigmatizing allegations”), EMPLOYEE may, within five (5) business days of the notice of termination, make a written request for a “name clearing” hearing (as described in Lubey v. City and County of San Francisco (1979) 98 Cal.App.3d 340 and its progeny) before the City Council. The hearing is solely intended to provide EMPLOYEE with an opportunity to clear their name. The Council may determine whether the stigmatizing allegations contained in the notice of termination are substantiated and, if not, issue a finding to correct the record. However, such a decision shall not require the EMPLOYEE’s reinstatement. If the EMPLOYEE does not request a ‘name-clearing’ hearing within five (5) business days, the EMPLOYER’s stated basis for the termination shall remain in effect.

SECTION VI – FRINGE BENEFITS AND OTHER TERMS AND CONDITIONS

OF EMPLOYMENT
A. Term Life Insurance

1. EMPLOYEE shall receive an EMPLOYER paid term life insurance policy having a face policy value of Fifty Thousand Dollars ($50,000).

2. EMPLOYER reserves the right to provide this life insurance through a self - insured plan or under a group insurance policy or policies issued by an insurance company or insurance companies selected by EMPLOYER.

ITEM 17

ATTACHMENT B

4923-8987-3020, v. 2
5 B. Health and Welfare Plan

1. EMPLOYEE must enroll in an available City medical plan unless EMPLOYEE opts out. In order to opt out, the EMPLOYEE must provide the following:
a. Proof that the EMPLOYEE and all individuals for whom EMPLOYEE intends to claim a personal exemption deduction for the taxable year or years that begin or end in or with EMPLOYER’S plan year to which the opt out applies (“tax family”), have or will have minimum essential coverage through another source (other than coverage in the individual market, whether or not obtained through Covered California) for the plan year to which the opt out arrangement applies (“opt out period”); and
b. EMPLOYEE must sign an attestation that EMPLOYEE and their tax family have or will have such minimum essential coverage for the opt out period. EMPLOYEE must provide the attestation every plan year at open enrollment.

2. EMPLOYER shall contribute the following amounts toward the combined premiums for medical, dental and vision on a semi -monthly basis (24 pay periods). EMPLOYER’S contribution shall not exceed the actual premiums, or the contribution amounts listed below, whichever is less. EMPLOYEE shall be responsible for the balance of premiums, if any. a. $405 semi-monthly ($ 810 monthly) for EMPLOYEE enrolled EMPLOYEE-Only medical coverage.
b. $800 semi-monthly ($1,600 monthly) for EMPLOYEE enrolled in EMPLOYEE + 1 medical coverage.
c. $1,125 semi-monthly ($2,250 monthly) for EMPLOYEE
enrolled in EMPLOYEE + Family (more than one dependent) medical coverage.

3. The City shall pay one hundred percent (100%) o f E M P L O Y E E ’ s dental and vision premiums if EMPLOYEE waives medical coverage , subject to the above terms.

4. If EMPLOYEE waives medical coverage subject to the terms above, EMPLOYEE shall receive $100 semi -monthly ($200 monthly) in taxable compensation.

5. The City shall maintain a Section 125 plan, allowing pre-tax deductions for EMPLOYEE’s share of medical, dental, and vision insurance premiums.

ITEM 17

ATTACHMENT B

4923-8987-3020, v. 2
6 6. EMPLOYEE’s benefits shall terminate at the end of the month in which City employment ends, regardless of reason. All coverage shall cease, except as required to be continued or offered under federal or state law.

7. The City shall have no responsibility to pay, either in cash or premiums, for any obligations, whether previously the City’s or the EMPLOYEE’s, arising after the month in which the EMPLOYEE’s employment terminates.

Cash payments for medical waivers, if any, will be made only through the end of the month in which EMPLOYEE’S employment terminate s. Such payments shall be included in EMPLOYEE’S final paycheck from the City pursuant to regular payroll practices.

Any outstanding premiums required to continue benefits through the end of the month in which EMPLOYEE’s City employment terminates shall be withheld from EMPLOYEE’s final paycheck.

The City retains the discretion to select its benefit plan(s) each year. In the event the City makes changes to the plan, EMPLOYEE will receive advance notice and an opportunity to discuss any concerns about the changes.

C. Sick Leave & Sick Leave Conversion

1. EMPLOYEE shall accrue sick leave at the rate of one day (8 hours) per month, totaling twelve (12) days per year (3.692 hours per pay period). Sick le ave accumulation is unlimited. Accrued sick leave shall have no cash value upon separation from employment, except as described below.

2. If EMPLOYEE has used no more than thirty six (36) hours of sick leave during the twelve (12) month period beginning with the first pay period in January and ending the second pay p eriod in December , EMPLOYEE shall be entitled to convert up to twenty four (24) hours of accrued and unused sick leave to pay or leave with pay on a one-to-one (1:1) basis, provided that EMPLOYEE’S sick leave balance does not fall below one-hundred and ninety two (192) hours.

3. Upon retirement from City service, EMPLOYEE shall be paid 50% of their accumulated sick leave balance at the EMPLOYEE’s current base hourly rate at the time of retirement (the “Retirement Cash-Out Amount”).
a. For the purpose of this section, the term “retirement” is defined, understood and intended to mean, EMPLOYEE’S separation from employment with the City at a time when the EMPLOYEE qualifies for pension benefits through the 1937 Act Retirement System, concu rrent with the filing of an application by EMPLOYEE for retirement benefits and subsequent notification by the administrators of the 1937 Act Retirement System of approval of the application and the right of EMPLOYEE to commence receipt of current benefits from the retirement system. Discontinuance of ITEM 17

ATTACHMENT B

4923-8987-3020, v. 2
7 paid work for the City under any circumstances other than defined herein, or election by EMPLOYEE for deferral of retirement payments, are not considered as “retirement” for eligibility to receive payment for a portion of any unused sick leave benefit as stated herein.
b. The City agrees to implement upon retirement a retiree health savings plan administered by a provider selected by the City.
c. Upon retirement, EMPLOYEE shall have the option to: 1) receive all or part of the Retirement Cash-Out Amount in cash; 2) contribute all or part of the Retirement Cash -Out Amount to a Retiree Health Savings account; 3) contribute all or part of the Retirement Cash -Out Amount to a deferred compensation account; or 4) any combination of the foregoing.

D. Vacation & Vacation Conversion

1. Vacation shall be accrued as follows:

Years of
Continuous Service
Hours Earned Per Pay
Period
Annual
Accumulation
0-10 4.62 hours 15 days
11-19 6.15 hours 20 days
20 Plus 1 additional day per year for
each year over 20 to a
maximum of 25 days per year

2. Maximum vacation accumulation shall be four-hundred and eighty (480) hours.

If EMPLOYEE reaches this cap , EMPLOYEE will not accrue additional vacation hours until the balance falls below four -hundred and eighty (480) hours. Accrual will resume only once the balance is reduced through use of vacation.

3. Upon separation from service, pay-out of accumulated vacation hours shall be limited to a maximum of four-hundred and eighty (480) hours.

4. Per fiscal year, EMPLOYEE may irrevocably elect at least twelve (12) months in advance to convert up to forty (40) hours of vacation leave into cash. Payment will be made at EMPLOYEE’S current hourly rate of pay on a one-to-one (1:1) basis.

E. Conversion of Leave to Deferred Compensation Account

1. EMPLOYEE may elect, once per fiscal year, to convert forty (40) hours total of accumulated sick and/or vacation leave into a contribution to EMPLOYEE’S individual deferred compensation account.

ITEM 17

ATTACHMENT B

4923-8987-3020, v. 2
8 F. Management Leave

1. EMPLOYEE is classified as exempt under the Fair Labor Standards Act (FLSA) executive-employee exemption.

2. EMPLOYEE shall receive fifteen (15) management leave days, one hundred twenty (120 hours) per fiscal year , including the current fiscal year . This management leave must be used within the fiscal year in which it is earned and does not accumulate from year-to-year. Carryover of unused management leave into the next fiscal year is permitted only with prior written approval of the City Manager.

G. Holidays
EMPLOYEE shall receive such paid City holidays as are granted to the Mid- Managers’ Bargaining Group.

H. Bereavement Leave

1. EMPLOYEE shall be entitled to take up to five (5) scheduled workdays of paid bereavement leave in the event of death of a family member as defined by the California Family Rights Act —which includes a parent, child, grandparent, grandchild, sibling, spouse, registered domestic partner, parent-in-law, or other “designated person” —as well as a sibling, parent or grandparent of EMPLOYEE’S spouse or registered domestic partner. EMPLOYEE shall be entitled to bereavement leave with pay as follows:
a. EMPLOYEE shall be entitled to leave with pay for a maximum of five (5) scheduled workdays in the event of the death of the EMPLOYEE’S spouse, registered domestic partner or children.
b. EMPLOYEE shall be entitled to leave with pay for a maximum of three (3) scheduled workdays, in the event of the death of the EMPLOYEE’S parents, siblings or grandchildren.
c. EMPLOYEE shall be entitled to leave with pay for a maximum of one (1) scheduled workday in the event of the death of an EMPLOYEE’S brother or sister by marriage or domestic partnership, parents by marriage or domestic partnership, and grandparents of EMPLOYEE or by marriage or domestic partnership.

2. Additional bereavement time may be granted , but it will be paid from the EMPLOYEE’S accrued vacation or management leave , upon request from EMPLOYEE and approval by the City Manager.

3. EMPLOYER reserves the right to request proof of the death of the deceased and the EMPLOYEE’S relationship to the deceased.

ITEM 17

ATTACHMENT B

4923-8987-3020, v. 2
9 I. Retirement System and Contribution

1. EMPLOYER shall provide EMPLOYEE enhanced retirement benefits pursuant to the formula outlined in Government Code Section 31676.14 (commonly known as “2% at 62”).

2. EMPLOYEE shall pay 100% of their contribution into the 1937 Act Stanislaus County Employees’ Retirement System. The contribution shall be vested in the EMPLOYEE’S name as permitted under the rules and regulations of the Act.

J. Professional Development

1. As an incentive for EMPLOYEE’s professional growth , EMPLOYER will annually budget $900.00 annually for EMPLOYEE’s professional development. Independent of, and supplemental to, any other budgeted City funds for training or conferences, this benefit may be used for:
a. Attending national or international professional conferences related to EMPLOYEE’s role;
b. Enrolling in relevant management training courses;
c. Enrolling in academic or educational classes related to City employment;
d. Tuition, books, or reference materials to support EMPLOYEE in his role.

Acquisition of computer hardware, software, or other technolog y may also be allowed, provided the item is for EMPLOYEE’S use in performing their job, and the purchased items remains City property.

2. EMPLOYEE must obtain the City Manager’s written approval for any intended use of the professional development funds before encumbering or spending them. The annual allocation may be carried over into one (1) additional fiscal year. These funds will not be paid in cash or treated as additional compensation.

K. Educational Incentive
In order to promote highly trained and skilled professionals, the City is willing to provide educational incentive to those individuals who demonstrate their improved education level. Education must be from an accredited college. Should EMPLOYEE obtain a Master’s degree, EMPLOYEE shall receive an additional pay incentive of twelve percent (12%) of EMPLOYEE’s base salary.

ITEM 17

ATTACHMENT B

4923-8987-3020, v. 2
10 SECTION VII - GENERAL PROVISIONS

1. Modification of Agreement . This Agreement may be supplemented, amended, or modified only by a writing signed by the City and EMPLOYEE and approved by a resolution of the City Council.

2. Entire Agreement . This Agreement constitutes the final, complete, and exclusive statement of the terms of the agreement between the Parties and supersedes all other prior or contemporaneous oral or written understandings and agreements of the Parties. No Party has been induced to enter into this Agreement by, nor is any Party relying on, any representation or warranty except those expressly set forth in this Agreement.

3. Severability of Agreement. If a court or an arbitrator of competent jurisdiction holds any Section of this Agreement to be illegal, unenforceable, or invalid for any reason, the validity and enforceability of the remaining sections of this Agreement shall not be affected.

4. Authority. All Parties to this Agreement warrant and represent that they have the power and authority to enter into this Agreement and the names, titles and capacities herein stated on behalf of any entities, persons, states, or firms represented or purported to be represented by such entities, persons, states, or firms , and that all former requirements necessary or required by state or federal law in order to enter into this Agreement ha ve been fully complied with. Further, by entering into this Agreement , neither Party hereto shall have breached the terms or conditions of any other contract or agreement to which such Party is obligated, which such breach would have a material effect hereon.

5. Headings. The headings in this Agreement are included for convenience only and neither affect the construction or interpretation of any Section in this Agreement nor affect any of the rights or obligations of the Parties to this Agreement.

6. Necessary Acts and Further Assurances . The Parties shall, at their own cost and expense, execute and deliver such further documents and instruments and shall take such other actions as may be reasonably required or appropriate to evidence or carry out the intent and purposes of this Agreement.

7. Governing Law. This Agreement shall be governed and construed in accordance with the laws of the State of California.

8. Waiver. No covenant, term, or condition or the breach thereof shall be deemed waived, except by written consent of the Party against whom the waiver is claimed, and any waiver of the breach of any covenant, term, or condition shall not be deemed to be a waiver of any preceding or succeeding breach of the same or any other covenant, term, or condition.

9. Counterparts. This Agreement may be executed in counterparts, and all so executed shall constitute an agreement which shall be binding upon the Parties hereto, notwithstanding that the signatures of all Parties and Parties’ designated representatives do not appear on the same page.

ITEM 17

ATTACHMENT B

4923-8987-3020, v. 2
11 10. Venue. Venue for all legal proceedings shall be in the Superior Court of the State of California, in and for the County of Stanislaus.

11. Attorney’s Fees and Costs . If any action at law or in equity, including action for declaratory relief, is brought to enforce or interpret Sections of this Agreement, the prevailing Party shall be entitled to reasonable attorney's fees and costs, which may be set by the court in the same action or in a separate action brought for that purpose, in addition to any other relief to which such Party may be entitled.

SECTION VIII – EFFECTIVE DATE
This Employment Agreement shall become effective on December 15, 2025, upon resolution by the City Council approving this Agreement and execution by the Parties.

IN WITNESS WHEREOF, this Agreement has been entered into by and between EMPLOYEE and CITY as of the date of the Agreement set forth above.

Dated: Dated:

CITY OF CERES, EMPLOYER

By:

Douglas D. Dunford, City
Manager

Vanessa Portillo, EMPLOYEE

APPROVED AS TO FORM: ATTEST:

Nubia Goldstein, City Attorney

Fallon Martin, City Clerk (Seal)

ITEM 17
ITEM 17

COUNCIL AGENDA REPORT

CITY COUNCIL
Javier Lopez, Mayor
James Casey, Dist.1
Rosalinda L. Vierra, Dist. 2
Cerina Otero, Dist. 3
Daniel A. Martinez, Dist. 4
MEETING DATE: December 8, 2025
TO: Mayor and City Council
FROM: Douglas D. Dunford, City Manager
CONTACT: Nubia Goldstein, City Attorney
[email protected]
SUBJECT:

Accepting the Appointment of Councilmember Cerina Otero to the League of California Cities’ Governance, Transparency, and Labor Relations Policy Committee and Providing Direction on a Related Policy
RECOMMENDED COUNCIL ACTION:

Staff recommends the City Council accept the League of California Cities’ presidential appointment of Councilmember Otero to the Governance, Transparency, and Labor Relations Policy Committee. Staff further requests the Council provide staff with direction on a policy for appointments to external committees such as the League or other organizations.

I. BACKGROUND:

Councilmember Otero applied for and has received a presidential appointment for a one- year term on the Governance, Transparency, and Labor Relations Policy Committee. The term is effective immediately and will end upon adjournment of the 2026 League of California Cities Annual Conference. The League’s website sets forth the role that committees play within the League’s structure. Over 400 elected and appointed city officials serve on policy committees, and thus participate directly in establishing League policy. Policy committee members add their collective expertise, wisdom and opinions to the policy debate that is the foundation of League policy by weighing in on federal, state, and regulatory issues that affect cities. The recommendations from the policy committee are forwarded to the Cal Cities Board of Directors. Once approved by the board, these recommendations are adopted as Cal Citie s policy, and direct the organization’s approach to future policy. The Governance, Transparency, and Labor Relations Policy Committee reviews issues related to transparency, technology (open data), healthcare, elections, and political reform. Additionally, the committee oversees pensions and workers compensation reform, as well as other labor-related issues.

ITEM 18
The City does not have a formal policy governing appointments by outside organizations that would address this situation. The Council may accept the appointment and provide staff with direction on developing a policy for the future if it wishes to do so.

II. REASONS FOR RECOMMENDATION:

N/A
III. FISCAL IMPACTS:

There is no fiscal impact on the City of Ceres.

IV. EXISTING POLICY / RELATIONSHIP TO THE STRATEGIC PLAN:

N/A
V. POLICY ALTERNATIVES:

N/A
VI. INTERDEPARTMENTAL COORDINATION:

N/A
VII. PUBLIC PARTICIPATION:

N/A
VIII. ENVIRONMENTAL REVIEW:

N/A
IX. STEPS FOLLOWING APPROVAL:

The City does not have to take any steps following approval as it relates to the appointment. Once Council provides direction on a future policy for participation in these types of committees, staff will prepare an agenda item for the Council’s consideration.

Approved by: ____________________
Douglas D. Dunford,
City Manager

ITEM 18

Ceres City CouncilDecember 8, 2025

Ceres City Council
December 8, 2025