El Cerrito City Council
September 19, 2023

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DocuSign Envelope ID: 8415C75E-195E-44D9-AC77-02C99D269B91 Contractor shall provide annual reports that include, at a minimum, (i) the total contract release purchase order value for the County as a whole and individual County departments, and (ii) the number of orders placed, the breakdown (by customer JD/department and County) of the quantity and dollar amount of each product and/or service ordered per year. Annual reports must be made available no later than 30 days of the contract anniversary date unless otherwise requested.

Contractor shall also provide quarterly reports to the County that show a breakdown by contract release purchase order (i) the order date (ii) ship date (iii) estimated arrival date (iv) actual arrival date (v) list of products, services and maintenance items and (vi) the number and details of problem/service calls and department name that each such call pertains to (including unresolved problems). Quarterly reports must be made available to the County in electronic format, two (2) business days after the end of each quarter unless otherwise requested.

39. ACCESS TO BOOKS AND RECORDS PURSUANT TO THE SOCIAL SECURITY ACT Access to Books and Records: If and to the extent that, Section 1861 (v) (1) (1) of the Social Security Act (42 U.S.C. Section 1395x (v) (1) (1) is applicable, Contractor shall maintain such records and provide such information to County, to any payor which contracts with County and to applicable state and federal regulatory agencies, and shall permit such entities and agencies, at all reasonable times upon request, to access books, records and other papers relating to the Agreement hereunder, as may be required by applicable federal, state and local laws, regulations and ordinances. Contractor agrees to retain such books, records and information for a period of at least four (4) years from and after the termination of this Agreement. Furthermore, if Contractor carries out any of its duties hereunder, with a value or cost of Ten Thousand Dollars ($10,000) or more over a twelve (12) month period, through a subcontract with a related organization, such subcontract shall contain these same requirements. This provision shall survive the termination of this Agreement regardless of the reason for the termination.

40. COUNTY NO-SMOKING POLICY
Contractor and its employees, agents and subcontractors, shall comply with the County's No Smoking Policy, as set forth in the Board of Supervisors Policy Manual section 3.47 (as amended from time to time), which prohibits smoking: (1) at the Santa Clara Valley Medical Center Campus and all County-owned and operated health facilities, (2) within thirty (30) feet surrounding Countyowned buildings and leased buildings where the County is the sole occupant, and (3) in all County vehicles.

41. FOOD AND BEVERAGE STANDARDS
Except in the event of an emergency or medical necessity, the following nutritional standards shall apply to any foods and/or beverages purchased by Contractor with County funds for Countysponsored meetings or events.

If food is to be provided, healthier food options shall be offered. "Healthier food options" include (1) fruits, vegetables, whole grains, and low fat and low calorie foods; (2) minimally processed foods without added sugar and with low sodium; (3) foods prepared using healthy cooking techniques; and (4) foods with less than 0.5 grams of trans fat per serving. Whenever possible, Contractor shall (1) offer seasonal and local produce; (2) serve fruit instead of sugary, high calorie desserts; (3) attempt to accommodate special, dietary and cultural needs; and (4) post nutritional information and/or a list of ingredients for items served. If meals are to be provided, a vegetarian option shall be provided, and the Contractor should consider providing a vegan option. If prepackaged snack foods are provided, the items shall contain: (1) no more than 35% of calories from fat, unless the snack food items consist solely of nuts or seeds; (2) no more than 10% of calories from saturated fat; (3) zero trans-fat; (4) no more than 35% of total weight from sugar and Agreement CW2239581
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Western States Oil Company

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If beverages are to be provided, beverages that meet the County's nutritional criteria are (1) water with no caloric sweeteners; (2) unsweetened coffee or tea, provided that sugar and sugar substitutes may be provided as condiments; (3) unsweetened, unflavored, reduced fat (either nonfat or 1 % low fat) dairy milk; (4) plant-derived milk (e.g., soy milk, rice milk, and almond milk) with no more than 130 calories per 8 ounce serving; (5) 100% fruit or vegetable juice (limited to a maximum of 8 ounces per container); and (6) other low-calorie beverages (including tea and/or diet soda) that do not exceed 40 calories per 8 ounce serving. Sugar-sweetened beverages shall not be provided

42. DEBARMENT
Contractor represents and warrants that it, its employees, contractors, subcontractors or agents (collectively "Contractor") are not suspended, debarred, excluded, or ineligible for participation in Medicare, Medi-Cal or any other federal or state funded health care program, if applicable, or from receiving Federal funds as listed in the List of Parties Excluded from Federal Procurement or Nonprocurement Programs issued by the Federal General Services Administration.

Contractor must within thirty (30) calendar days advise the County if, during the term of this Agreement, Contractor becomes suspended, debarred, excluded or ineligible for participation in Medicare, Medi-Cal or any other federal or state funded health care program, as defined by 42.

U.S.C. 1320a-7b (f), or from receiving Federal funds as listed in the List of Parties Excluded from Federal Procurement or Non-procurement Programs issued by the Federal General Services Administration. Contractor will indemnify, defend and hold the County harmless for any loss or damage resulting from the conviction, debarment, exclusion or ineligibility of the Contractor.

43. CALIFORNIA PUBLIC RECORDS ACT
The County is a public agency subject to the disclosure requirements of the California Public Records Act ("CPRA"). If Contractor's proprietary information is contained in documents or information submitted to County, and Contractor claims that such information falls within one or more CPRA exemptions, Contractor must clearly mark such information "CONFIDENTIAL AND PROPRIETARY," and identify the specific lines containing the information. In the event of a request for such information, the County will make best efforts to provide notice to Contractor prior to such disclosure. If Contractor contends that any documents are exempt from the CPRA and wishes to prevent disclosure, it is required to obtain a protective order, injunctive relief or other appropriate remedy from a court of law in Santa Clara County before the County is required to respond to the CPRA request. If Contractor fails to obtain such remedy within the time the County is required to respond to the CPRA request, County may disclose the requested information.

Contractor further agrees that it shall defend, indemnify and hold County harmless against any claim, action or litigation (including but not limited to all judgments, costs, fees, and attorney's fees) that may result from denial by County of a CPRA request for information arising from any representation, or any action (or inaction), by the Contractor.

44. CONFLICT OF INTEREST; POLITICAL REFORM ACT DISCLOSURE REQUIREMENT If applicable, Contractor shall comply with all applicable requirements governing avoidance of impermissible client conflicts; and federal, state and local conflict of interest laws and regulations including, without limitation, California Government Code section 1090 et seq., the California Political Reform Act (California Government Code section 87100 et seq.) and the regulations of the Fair Political Practices Commission concerning disclosure and disqualification (2 California Agreement CW2239581 Page 16 of 45
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DocuSign Envelope ID: 8415C75E-195E-44D9-AC77-02C99D269B91 Code of Regulations section 18700 et seq.). Failure to do so constitutes a material breach of this Agreement and is grounds for immediate termination of this Agreement by the County.

In accepting this Agreement, Contractor covenants that it presently has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of this Agreement. Contractor further covenants that, in the performance of this Agreement, it will not use any contractor or employ any person having such an interest. Contractor, including but not limited to contractor's employees, may be subject to the disclosure and disqualification provisions of the California Political Reform Act of 1974 (the "Act"), that (1) requires such persons to disclose economic interests that may foreseeably be materially affected by the work performed under this Agreement, and (2) prohibits such persons from making or participating in making decisions that will foreseeably financially affect such interests.

Contractor, including but not limited to contractor's employees and subcontractors, may be subject to the disclosure and disqualification provisions of the California Political Reform Act of 1974 (the "Act"), that (1) requires such persons to disclose economic interests that may foreseeably be materially affected by the work performed under the Agreement, and (2) prohibits such persons from making or participating in making decisions that will foreseeably financially affect such interests.

If the disclosure provisions of the Act are applicable to any individual providing service under the Agreement, Contractor shall, upon execution of the Agreement, provide the County with the names, description of individual duties to be performed, and email addresses of all individuals, including but not limited to Contractor's employees, agents and subcontractors, that could be substantively involved in "making a governmental decision" or "serving in a staff capacity and in that capacity participating in making governmental decisions or performing duties that would be performed by an individual in a designated position," as part of Contractor's service to the County under the Agreement. Contractor shall ensure that such individuals file Statements of Economic Interests within 30 days of commencing service under the Contract, annually by April 1, and within 30 days of their termination of service under the Contract.

45. SEVERABILITY
Should any part of this Agreement between County and the Contractor or any individual contract release purchase order be held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect the validity of the remainder of the Agreement or any individual contract release purchase order which shall continue in full force and effect, provided that such remainder can, absent the excised portion, be reasonably interpreted to give the effect to the intentions of the parties.

46. NON-WAIVER
No waiver of a breach, failure of any condition, or any right or remedy contained in or granted by the provisions of this Agreement will be effective unless it is in writing and signed by County. No waiver of any breach, failure, right, or remedy will be deemed a waiver of any other breach, failure, right, or remedy, whether similar or not, nor will any waiver constitute a continuing waiver unless the writing signed by the County so specifies.

47. USE OF COUNTY'S NAME FOR COMMERCIAL PURPOSES
Contractor may not use the name of the County or reference any endorsement from the County in any fashion for any purpose, without the prior express written consent of the County as provided by the County's authorized representative, or designee.

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48. HEADINGS AND TITLES
The titles and headings in this Agreement are included principally for convenience and do not by themselves affect the construction or interpretation of any provision in this Agreement, nor affect any of the rights or obligations of the parties to this Agreement.

49. HANDWRITTEN OR TYPED WORDS
Handwritten or typed words have no greater weight than printed words in the interpretation or construction of this Agreement.

50. AMBIGUITIES
Any rule of construction to the effect that ambiguities are to be resolved against the drafting party does not apply in interpreting this Agreement.

51. ENTIRE AGREEMENT; MERGER
This Agreement and its Exhibits and Attachments (if any) constitute the final, complete and exclusive statement of the terms of the agreement between the parties. It incorporates and supersedes all the agreements, covenants and understandings between the parties concerning the subject matter hereof, and all such agreements, covenants and understandings have been merged into this Agreement. No prior or contemporaneous agreement or understanding, verbal or otherwise, of the parties or their agents shall be valid or enforceable unless embodied in this Agreement.

52. EXECUTION AND COUNTERPARTS
This Agreement may be executed in one or more counterparts, each of which will be considered an original, but all of which together will constitute one and the same instrument. The parties agree that this Agreement, its amendments, and ancillary agreements to be entered into in connection with this Agreement will be considered signed when the signature of a party is delivered a method described herein.

Unless otherwise prohibited by law or County policy, the parties agree that an electronic copy of a signed contract, or an electronically signed contract, has the same force and legal effect as a contract executed with an original ink signature. The term "electronic copy of a signed contract" refers to a transmission by facsimile, electronic mail, or other electronic means of a copy of an original signed contract in a portable document format. The term "electronically signed contract" means a contract that is executed by applying an electronic signature using technology approved by the County.

53. NOTICES
All deliveries, notices, requests, demands or other communications provided for or required by this Agreement shall be in writing and shall be deemed to have been given when sent by registered or certified mail, return receipt requested; when sent by overnight carrier; or upon email confirmation to sender of receipt of a facsimile communication which is followed by a mailed hard copy from sender. Notices shall be addressed to the individuals identified in the Key Provisions of the Agreement as the County Contract Administrator and the Supplier Contact. Each party may designate a different person and address by sending written notice to the other party, to be effective no sooner than ten (10) days after the date of the notice.

54. ACCOUNT MANAGER
Contractor must assign an Account Manager to the County upon execution of the Agreement to facilitate the contractual relationship, be fully responsible and accountable for fulfilling the County's requirements. Contractor represents and warrants that such person will ensure that the Agreement CW2239581 Page 18 of 45
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55. SURVIVAL
All representations, warranties, and covenants contained in this Agreement, or in any instrument, certificate, exhibit, or other writing intended by the parties to survive this Agreement, will survive the termination of this Agreement.

56. GOVERNING LAW, JURISDICTION AND VENUE
This Agreement shall be construed and interpreted according to the laws of the State of California, excluding its conflict of law principles. Proper venue for legal actions shall be exclusively vested in state court in the County of Santa Clara. The parties agree that subject matter and personal jurisdiction are proper in state court in the County of Santa Clara and waive all venue objections.

57. THIRD PARTY BENEFICIARIES
This Agreement does not, and is not intended to, confer any rights or remedies upon any person or entity other than the parties

58. AUTHORITY
Each party executing the Agreement on behalf of such entity represents that he or she is duly authorized to execute and deliver this Agreement on the entity's behalf, including, as applicable, the Board of Supervisors, the Board of Directors, or Executive Director. This Agreement shall not be effective or binding unless it is in writing and approved by the County's authorized representative, or authorized designee, as evidenced by their signature as set forth in this Agreement.

59. LIVING WAGE
Unless otherwise exempted or prohibited by law or County policy, Contractors that contract with the County to provide Direct Services, as defined in County of Santa Clara Ordinance Code Division 836 ("Division 836") and Board Policy section 5.5.5.5 ("Living Wage Policy"), and their subcontractors, where the contract value is $100,000 or more, must comply with Division 836 and the Living Wage Policy and compensate their employees in accordance with Division 836 and the Living Wage Policy. Compliance and compensation for purposes of this provision includes, but is not limited to, components relating to fair compensation, earned sick leave, paid jury duty, fair workweek, worker retention, fair chance hiring, targeted hiring, local hiring, protection from retaliation, and labor peace. If Contractor and/or a subcontractor violate this provision, the Board of Supervisors or its designee may, at its sole discretion, take responsive actions including, but not limited to, the following:
(I) Suspend, modify, or terminate the Direct Services Contract. (2) Require the Contractor and/or Subcontractor to comply with an appropriate remediation plan developed by the County.
(3) Waive all or part of Division 836 or the Living Wage Policy.

This provision shall not be construed to limit an employee's rights to bring any legal action for violation of the employee's rights under Division 836 or any other applicable law. Further, this provision does not confer any rights upon any person or entity other than the Board of Supervisors or its designee to bring any action seeking the cancellation or suspension of a County contract. By entering into this contract, Contractor certifies that it is currently complying with County Code Division 836 and the County's Living Wage Policy with respect to applicable contracts, and warrants that it will continue to comply with County Code Division 836 and the County's Living Wage Policy with respect to applicable contracts.

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60. CONTRACTING PRINCIPLES
All entities that contract with the County to provide services where the contract value is $100,000 or more per budget unit per fiscal year and/or as otherwise directed by the Board, shall be fiscally responsible entities and shall treat their employees fairly. To ensure compliance with these contracting principles, all contractors shall: (1) comply with all applicable federal, state and local rules, regulations and laws: (2) maintain financial records, and make those records available upon request; (3) provide to the County copies of any financial audits that have been completed during the term of the Agreement; (4) upon the County's request, provide the County reasonable access, through representatives of the Contractor, to facilities, financial and employee records that are related to the purpose of the Agreement, except where prohibited by federal or state laws, regulations or rules.

61. CONTRACTOR TRAVEL EXPENSES
Contractor shall be solely responsible for any travel fees or out of pocket expenses.

62. INFORMATION SECURITY COMPLIANCE
A. For purposes of this section, the following Definitions will apply:
(1) "Breach" means unauthorized access to, or use of, County Data or information security networks or systems that compromises confidentiality, integrity, and/or availability those systems or County Data.
(2) "Independent Penetration Testing," or "pen testing," means the County's practice - by using an independent third party- of testing a computer system, network or web application to find security vulnerabilities that an attacker could exploit (3) "Risk Assessment" means the process by which the County's Information Security Office ("ISO") assesses (i) the Contractor's information security program, and related aspects, by identifying, analyzing, and understanding how the Contractor will store, process and transmit County Data; and (ii) the potential impact on the County of any security risks, weaknesses and threats related to safeguarding County assets and County Data. The Risk Assessment usually includes the ISO's evaluation of documentation provided by the Contractor.

B. Contractor shall do all of the following:
(1) Maintain or improve upon its information security posture at the lime of the County's initial Risk Assessment as reasonably determined by the County. Contractor shall provide written notice to the County's Information Security Office ("ISO") of any changes or deficiencies to its information security posture.
(2) Protect the confidentiality, integrity, availability of the County's data and comply with any information security requirements provided to Contractor by the ISO for the entire term of the Agreement.
(3) Follow any updated security requirements for the remaining term of the Agreement if the County re-evaluates the Risk Assessment, conducts periodic audits, and/or completes annual Independent Penetration Testing.
(4) Upon discovering any Breach that could impact the County, whether caused by Agreement CW2239581
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DocuSign Envelope ID: 8415C75E-195E-44D9-AC77-02C99D269B91 Contractor, its officers, employees, contractors or agents or others, the Contractor shall notify the ISO at [email protected] within 24 hours.

Contractor shall also comply with all of its other obligations in this Agreement relating to breaches and potential breaches.

63. COUNTY DATA
(1) Contractor shall not acquire any ownership interest in County Data (including County Confidential Information). As between Contractor and County, all County Confidential Information and/or County Data shall remain the property of the County. Contractor shall not, without County's written permission, use or disclose County Data (including County Confidential Information) other than in the performance of its obligations under this Agreement.
(2) Contractor shall be responsible for establishing and maintaining an information security program that is designed to ensure the security and confidentiality of County Data, protect against any anticipated threats or hazards to the security or integrity of County Data, and protect against unauthorized access to or use of County Data that could result in substantial harm or inconvenience to County or any end users. Upon termination or expiration of this Agreement, Contractor shall seek and follow County's direction regarding the proper disposition of County Data.
(3) Contractor shall take appropriate action to address any incident of unauthorized access to County Data, including addressing and/or remedying the issue that resulted in such unauthorized access, and notifying County by phone or in writing within 24 hours of any incident of unauthorized access to County Data, or any other breach in Contractor's security that materially affects County or end users. If the initial notification is by phone, Contractor shall provide a written notice within 5 days of the incident. Contractor shall be responsible for ensuring compliance by its officers, employees, agents, and subcontractors with the confidentiality, privacy, and information security requirements of this Agreement. Should County Confidential Information and/or legally protected County Data be divulged to unauthorized third parties, Contractor shall comply with all applicable federal and state laws and regulations, including but not limited to California Civil Code sections 1798.29 and 1798.82 at Contractor's sole expense. Contractor shall not charge County for any expenses associated with Contractor's compliance with these obligations. (4) Contractor shall defend, indemnify and hold County harmless against any claim, liability, loss, injury or damage arising out of, or in connection with, the unauthorized use, access, and/or disclosure of information by Contractor and/or its agents, employees or subcontractors, excepting only loss, injury or damage caused by the sole negligence or willful misconduct of personnel employed by the County.

64. ACCESS TO COMPETITIVELY BID AGREEMENTS
Where the contract award is a result of a formal competitive solicitation, Contractor may opt to permit the use of this Agreement by other political subdivisions, municipalities, tax supported agencies and non-profit entities in the United States. Such participating agencies shall make purchases in their own name, make payments directly to the Contractor and shall be liable directly to Contractor holding the County of Santa Clara harmless.

If applicable, Contractor shall be required to maintain a list of cooperative entities using this Agreement. The list shall report dollar volumes spent annually and shall be provided on an annual basis to the County, at the County's request.

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65. COMPLIANCE WITH ALL LAWS AND REGULATIONS INCLUDING

NONDISCRIMINATION, EQUAL OPPORTUNITY, AND WAGE THEFT PREVENTION Contractor's violation of this provision shall be deemed a material default by Contractor, giving County a right to terminate the Agreement. Examples of such Regulations include but are not limited to California Occupational Safety and Health Act of 1973, Labor Code §6300 et seq. the Fair Packaging and Labeling Act. and the standards and regulations issued there under.

Contractor agrees to indemnify and hold harmless the County for any loss, damage, fine, penalty, or any expense whatsoever as a result of Contractor's failure to comply with the act and any standards or regulations issued there under.
(1) Compliance with All Laws. Contractor shall comply with all applicable Federal, State, and local laws, regulations, rules, and policies (collectively, "Laws"), including but not limited to the non-discrimination, equal opportunity, and wage and hour Laws referenced in the paragraphs below.
(2) Compliance with Non-Discrimination and Equal Opportunity Laws: Contractor shall comply with all applicable Laws concerning nondiscrimination and equal opportunity in employment and contracting, including but not limited to the following: Santa Clara County's policies for contractors on nondiscrimination and equal opportunity; Title VII of the Civil Rights Act of 1964 as amended; Americans with Disabilities Act of 1990; the Age Discrimination in Employment Act of 1967; the Rehabilitation Act of 1973 (Sections 503 and 504); the Equal Pay Act of 1963; California Fair Employment and Housing Act (Government Code sections 12900 et seq.); California Labor Code sections 1101, 1102, and 1197.5; and the Genetic Information Nondiscrimination Act of 2008. In addition to the foregoing, Contractor shall not discriminate against any subcontractor, employee, or applicant for employment because of age, race, color, national origin, ancestry, religion, sex, gender identity, gender expression, sexual orientation, mental disability, physical disability, medical condition, political belief, organizational affiliation, or marital status in the recruitment, selection for training (including but not limited to apprenticeship), hiring, employment, assignment, promotion, layoff, rates of pay or other forms of compensation. Nor shall Contractor discriminate in the provision of services provided under this contract because of age, race, color, national origin, ancestry, religion, sex, gender identity, gender expression, sexual orientation, mental disability, physical disability, medical condition, political beliefs, organizational affiliations, or marital status.
(3) Compliance with Wage and Hour Laws: Contractor shall comply with all applicable wage and hour Laws, which may include but are not limited to, the Federal Fair Labor Standards Act, the California Labor Code, and, if applicable, any local Minimum Wage, Prevailing Wage, or Living Wage laws.
(4) Definitions: For purposes of this Section, the following definitions shall apply. A "Final Judgment, Decision, Determination, or Order" shall mean a judgment, decision, determination, or order (a) which is issued by a court of law, an investigatory government agency authorized by law to enforce an applicable Law, an arbiter, or arbitration panel and (b) for which all appeals have been exhausted or the time period to appeal has expired. For pay equity Laws, relevant investigatory government agencies include the federal Equal Employment Opportunity Commission, the California Division of Labor Standards Enforcement, and the California Department of Fair Employment and Housing. Violation of a pay equity Law shall mean unlawful discrimination in compensation on the basis of an individual's sex, gender, gender identity, gender expression, sexual orientation, race, color, ethnicity, or national origin under Title VII of the Civil Rights Act of 1964 as amended, the Agreement CW2239581
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DocuSign Envelope ID; 8415C75E-195E-44D9-AC77-02C99D269B91 Equal Pay Act of 1963, California Fair Employment and Housing Act, or California Labor Code section 1197.5, as applicable. For wage and hour Laws, relevant investigatory government agencies include the federal Department of Labor, the California Division of Labor Standards Enforcement, and the City of San Jose's Office of Equality Assurance. (5) Prior Judgments, Decisions or Orders against Contractor: By signing this Agreement, Contractor affirms that it has disclosed any final judgments, decisions, determinations, or orders that (a) were issued in the five years prior to executing this Agreement by a court or investigatory government agency and (b) found that Contractor violated an applicable wage and hour or pay equity law. Contractor further affirms that it has satisfied and complied with - or has reached agreement with the County regarding the manner in which it will satisfy - any such final judgments, decisions, determinations, or orders. (6) Violations of Wage and Hour Laws or Pay Equity Laws During Term of Agreement: If at any time during the term of this Agreement, Contractor receives a Final Judgment, Decision, Determination, or Order rendered against it for violation of an applicable wage and hour Law or pay equity Law, then Contractor shall promptly satisfy and comply with any such Final Judgment, Decision, Determination or Order. Contractor shall inform the Office of the County Executive-Office of Countywide Contracting Management (OCCM) of any relevant Final Judgment, Decision, Determination, or Order against it within 30 days of the Final Judgment, Decision, Determination, or Order becoming final or of learning of the Final Judgment, Decision, Determination, or Order, whichever is later. Contractor shall also provide any documentary evidence of compliance with the Final Judgment, Decision, Determination, or Order within 5 days of satisfying the Final Judgment, Decision, Determination, or Order. Any notice required by this paragraph shall be addressed to the Office of the County ExecutiveOCCM at 70 W. Hedding Street, East Wing, 11th Floor, San Jose, CA 95110. Notice provisions in this paragraph are separate from any other notice provisions in this Agreement and, accordingly, only notice provided to the Office of the County Executive-OCCM satisfies the notice requirements in this paragraph.
(7) Access to Records Concerning Compliance with Pay Equity Laws: In addition to and notwithstanding any other provision of this Agreement concerning access to Contractor's records, Contractor shall permit the County and/or its authorized representatives to audit and review records related to compliance with applicable pay equity Laws. Upon the County's request, Contractor shall provide the County with access to any and all facilities and records, including but not limited to financial and employee records, that are related to the purpose of this Section, except where prohibited by federal or state laws, regulations or rules. County's access to such records and facilities shall be permitted at any time during Contractor's normal business hours upon no less than 10 business days' advance notice. (8) Pay Equity Notification: Contractor shall (1) directly provide each employee working in California and each person applying for a job in California with a written copy of any applicable pay equity Laws, or (2) electronically disseminate the text of applicable pay equity Laws to each California employee and job applicant, either directly or by posting a copy in conspicuous places available to employees and applicants. Such notification shall occur at least once during the term of this Agreement and, if this Agreement is a multi-year Agreement, at least annually thereafter.
(9) Material Breach: Failure to comply with any part of this Section shall constitute a material breach of this Agreement. In the event of such a breach, the County may, in its discretion, Agreement CW2239581
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OocuSign Envelope ID: 8415C75E-195E-4409-AC77-02C99D269B91 exercise any or all remedies available under this Agreement and/or at law. County may, among other things, take any or all of the following actions:
(i) Suspend or terminate any or all parts of this Agreement. (ii) Withhold payment to Contractor until full satisfaction of a Final Judgment, Decision, Determination, or Order.
(iii) Offer Contractor an opportunity to cure the breach. (10) Subcontractors: Contractor shall impose all of the requirements set forth in this Section on any subcontractors permitted to perform work under this Agreement. This includes ensuring that any subcontractor receiving a Final Judgment, Decision, Determination, or Order for violation of an applicable wage and hour Law promptly satisfies and complies with such Final Judgment, Decision, Determination, or Order.

66. LICENSE GRANT
Contractor grants to County a perpetual, non-exclusive, royalty-free, fully paid-up license to use the Software for its business activities, which includes fulfilling its mission of providing services to the public. This includes the right to use licensed software in backup, disaster recovery, and testing environments.

67. CLICK-THROUGH AGREEMENTS AND CONTRACTOR POLICIES
(1) No provisions of any shrink-wrap or any click-through agreement (or other form of "click to accept" agreement) that may routinely accompany any products or services acquired under this Agreement shall apply in place of, or serve to modify any provision of this Agreement, even if a user or authorized officer of County purports to have affirmatively accepted such shrink-wrap or click through provisions. Without limiting the foregoing, no "terms of use," "privacy policy" or other policy on Contractor's website or application (collectively, "Policies") or another website that may routinely accompany any products or services acquired under this Agreement shall apply in place of or serve to modify any provision of this Agreement. (2) For the avoidance of doubt and without limiting the foregoing, in the event of a conflict between any such shrink-wrap, click-through provisions or Policies (irrespective of the products or services that such provisions attach to) and any term or condition of this Agreement, the relevant term or condition of this Agreement shall govern to the extent of any such conflict. Only the provisions of this Agreement as amended from time to time, and executed by the parties, shall apply to County and or authorized user.

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EXHIBIT B
Product and Price Schedule
The County shall only be charged for goods as included and described in this Exhibit B - Product and Price Schedule. Any charges or fees not specifically listed in this Exhibit B shall not be invoiced to the County.

A. PRICING TABLE
# Product Range of UOM Fixed Margin off OPIS Daily
Description Quantity Contract Average Rack
Ordered Price
1 Renewable Red 1501-4000 Gallon $+0.0575
Dyed Diesel
2 Renewable Red 4001-6000 Gallon $+0.0075
Dved Diesel
3 Renewable Red 6001 and above Gallon $-0.0225
Dved Diesel
Prices are on a per gallon basis per the increments shown on the table. All prices shall be F.O.B. destination freight prepaid and allowed. All costs incidental to delivery and offloading of fuel or coordinating fuel pick up are included in the price. Pricing does not include any State of California fees, taxes or the Cap-and-Trade for fuel California Carbon Allowance (CAR) fee that went into effect on January 1, 2015. However, the parties agree that all current California fees and taxes will be included in the final paid price per gallon for fuel purchased under the Agreement. The County and the participating agencies will not be charged for any additional fees for the amount of time it takes the Contractor to offload and transfer fuel to tanks in various locations.

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EXHIBITC
Requirements and Specifications
Contractor shall provide Renewable Red Dyed Diesel 1501 Gallons and Up to the County of Santa Clara in accordance with the terms and conditions of this Agreement.

The Agreement shall be used as a master agreement against which the ordering department shall issue subordinate purchase documents based on the pricing, terms, and conditions of the agreement. County does not guarantee, whether implied or in writing, to purchase any estimated quantities based on past usage, annual dollar volume, or quantity. No minimum orders are guaranteed.

A. BACKGROUND
The County of Santa Clara's Facilities and Fleet (FAF) requires Renewable Red Dyed Diesel for the locations listed in the service locations in table 2.1 below.

8. OBJECTIVES
Contractor must be capable of:

1. Providing Renewable Red Dyed Diesel; on an as needed basis.

2. Delivering fuel to multiple County locations on an as needed basis.

3. Following all required specifications and delivery requirements throughout the term of the Agreement.

4. Responding to emergency calls; and

5. Providing reports per County requirements.

C. DEFINITIONS

1. CRPO: Contract Release Purchase Order
Abbreviation for Contract Release Purchase Order, which is a County-issued purchase order provided to the Contractor when an order is placed for contracted services and goods.

D. SPECIFICATIONS AND SUPPLIER RESPONSIBILITIES

1. Technical Specifications

1.1 All products shall conform to the State of California specifications including California Air Resources Board (CARS), American Society of Testing & Materials (ASTM), "The California Reformulated Gasoline Regulations" Title 13, California Code of Regulations Sections 2250- 2273.5 latest version /sub articles, and all-inclusive amendments.

1.1.1 Regular Unleaded Gasoline

1.1.1.1 Minimum Octane Rating of 87 which shall be determined by using the R+M/2 Method.

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1.1.1.2 Comply with the requirements of American Society of Testing Materials (ASTM) 0418151 latest version.

1.1.2 GARB Specification ULSD #2

1.1.2.1 All diesel fuel sold for vehicular use in California must meet a 15-ppm maximum sulfur limit (Ultra Low) in addition to meeting all the current low aromatics GARB diesel
specifications

1.1.3 GARB Specification ULSD #2 - Red

1.1.3.1 The same specifications as GARB ULSD #2 except for the red dye and dyeing process to donate usage for taxexempt purposes.

1.1.4 "Renewable hydrocarbon diesel" means a diesel fuel that is produced from nonpetroleum renewable resources but is not a mono-alkyl ester and which is registered as a motor vehicle fuel or fuel additive under 40 CFR Part 79.

1.1.4.1 The renewable diesel fuel shall conform to California Code of Regulations (CCR) Title 4, Division 9, Chapter 6, Article 5, Section 4149.

1.1.4.2 The renewable diesel fuel shall also meet the requirements of the California Code of Regulation, Title 13, Division 3, Chapter 5, Article 2, Section 2281 (sulfur content) and Section 2282 (aromatic hydrocarbon). Alternative diesel formulations must be certified by GARB. Evidence of such fact shall be available to the County of Santa Clara if requested.

1.1.4.3 The renewable diesel fuel shall meet the requirements of Low Carbon Fuel Standard (LCFS), Title 17, Division 3,
Chapter 1, Subchapter 10, Article 4, Subarticle 7, of
California Code of regulations (CCR), Sections 95480
through 95490 (collectively referred to as "LCFS") applies to any transportation fuel, as defined in section 95481, that is sold, supplied, or offered for sale in California, and to any person who, as a "regulated party" defined in section 95481 and specified in section 95484(a), is responsible for a transportation fuel in calendar year. LCFS regulation became effective on January 12, 2010.

1.1.4.3.1 Note: County of Santa Clara is end user and
will not assume the role as a "regulated party."

1.1.4.4 The carbon intensity of the fuel shall be no more than 50 g C02e/MJ as determined by the Low Carbon Fuel Standard
(LCFS), Title 17, Division 3, Chapter 1, Subchapter 10, Article 4, Subarticle 7, of California Code of Regulations (CCR), Section 95486.

1.1.4.5 SAVE

1.1.5 Storage Life: Fuel shall not deteriorate in ordinary storage and shall not form excessive gum, resin, or deposits.

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2. Service Locations
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17 2.1 Contractor shall service the County's required distribution points/locations as listed in the table below.

Location Address
FAF Fleet Management 2265 Junction Ave. San Jose
Roads East Yard 1505 Schallenberaer Rd. San Jose
Roads West Yard 11031 Dovie Rd. San Jose
Roads South Yard 13550 Diessner, San Martin
Parks Central Yard 995 Hellyer Ave., San Jose
Younner Gas Station 90 W. Younqer Ave., San Jose
James Bovs Ranch 19050 Malaauerra Ave., Morqan Hill
Joseph D. Grant Ranch 18405 Mt. Hamilton Road., San Jose Uvas Canvon Park 8515 Crov Rd., Moraan Hill
Vasona Lake Park 298 Garden Hill Dr., Los Gatos
Calero Lake 3201 McKean Rd., San Jose
Ed Levin Park 3100 Calaveras Road., Miloitas
Mt. Madonna Park Hecker Pass Hwv, Watsonville
Covote Lake 10840 Covote Lake Rd. Gilrov
Sanborn-Skyline Park 16055 Sanborn Rd., Saratoga
Stevens Creek Park 11401 Stevens Canvon Rd., Cuoertino
Mt. Hamilton San Antonio Vallev Yard 47365 San Antonia Vallev Road, Livermore

3. Fuel and Fuel Delivery Requirements

3.1 Orders and Locations

3.1.1 Fuel site deliveries will include a combination of filling tanks and direct facility of off-road equipment with specified quantities. No order shall be delivered without an order placed by the responsible County Department.

3.1.2 The County reserves the right to add locations or discontinue service to existing locations without any additional charges or change in the bid price structure. All tanks will be underground unless otherwise stated. All fuel shall be delivered to designated points unless otherwise stated.

3.1.3 The following locations take deliveries by transport:

3.1.3.1 FAF Fleet Management, 2265 Junction Ave. San Jose

3.1.3.2 Roads West Yard, 11031 Doyle Rd. San Jose

3.1.3.3 Roads South Yard 13550 Diessner, San Martin

3.1.3.4 Roads East Yard. 1505 Schallenberger Rd. San Jose

3.1.3.5 Santa Rita Fuel Station, 6175 Madigan Rd. Dublin, CA

3.1.3.6 14200 Chapman Road, Leandro, CA 94578

3.2 If delivery vehicle is equipped with metered pumps, these pumps shall be currently certified as to accuracy by the California Department of Agriculture, Division of Weights and Measures.

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3.3 If metering is not accomplished from the delivery vehicles at the time of delivery, a highway transportation receipt (H.T.R.), issued at the point where the fuel order was loaded in the delivery vehicle, shall be delivered to the ordering Department. At minimum the H/T/R. shall show the date fuel loaded, carrier, truck numbers, quantity and type of fuel loaded, and temperature when loaded.

3.4 All deliveries shall be temperature corrected to 60 degrees Fahrenheit.

3.5 All delivery trucks shall comply with the California Environmental Protection Agency Air Resources Board approved certified Phase 11 Vapor Recovery Equipment Requirements. Proof of compliance will be supplied by the awarded vendor when requested by the County. There are many other smaller Back-up Power Generators that tanks do not need to meet the EVR requirements, but at times the vendor may need to service these locations too.

3.6 Delivery dates and times must be coordinated with the County end user Department. All deliveries shall be made Monday through Friday between the hours of 8:00 a.m. to 5:00 p.m. unless special delivery restrictions or instructions are required by the requested County end- user Department.

3.7 Urgent Deliveries

3.7.1 It shall be expected that vendor shall deliver any urgent fill orders placed by the County and participating agencies within twelve (12) hours of the time order is placed with no additional cost.

3.7.2 Urgent deliveries are not anticipated to occur often and shall be kept to a minimum by the end-user Department placing the order.

3.7.3 There are no minimum requirements for urgent deliveries.

3.7.4 All urgent deliveries shall occur during normal delivery hours of 8:00 a.m. to 5:00 p.m. unless special delivery instructions apply by the requesting Department.

3.8 Emergency Deliveries

3.8.1 During a state of emergency, in which a natural disaster or other type of declared emergency, County of Santa Clara is a first responder to said emergency. As a result, the County and any other participating agencies of this contract, will have a priority status on available fuel.

3.8.2 It shall be expected that vendor shall deliver any emergency fill orders placed by the County and participating agencies within four (4) hours of the time order is placed with no additional cost to the County.

3.8.3 Emergency deliveries are not anticipated to occur often and shall be kept to a minimum by the end-user Department placing the order.

3.8.4 There are no minimum requirements for emergency deliveries.

3.8.5 Emergencies deliveries shall be placed by phone from the ordering department with confirmation by electronic mail or facsimile by the same ordering Department.

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3.9 Standing Time - The County will not be charged any additional fees for the time it takes the Contractor to fuel the County's off-road equipment or generator tanks.

3.1 O Spillage

3.10.1 The County has a "zero" leakage standards for fuel transfer operations.

3.10.2 The Contractor shall provide equipment for and training of truck drivers to minimize the chance of spillage during connection and disconnection of hoses and during the transfer of fuel.

3.10.3 The vendor shall ensure that all equipment, tools and procedures used follow all applicable specifications and regulations governing such operations.

3.10.4 In the event of leakage or spillage, it shall be the vendor's responsibility to effect immediate containment, cleanup, and disposal and restoration activities in accordance with applicable State of California laws and regulations and subject to County's satisfaction.

3.10.5 All material associated with such clean-up shall be removed by the Contractor.

3.11 Safety Data Sheet- It is required by law that all hazardous materials must be identified and be accompanied with a "Safety Data Sheet" (SOS) at the delivery site.

3.12 Substitutions - Contractor will not be allowed to substitute any product with any other without the consent of the County end-user Department placing the order. If substitute products are delivered without approval, it will be the responsibility of the vendor to collect product at no charge or penalty to the County.

4. Electronic Transactions in Ariba Network
The County has implemented the Santa Clara County Procure-to-Pay Collaborative Commerce (SCC P2P) project in year 2015 to streamline its procurement and payment functions. The County transacts business with its suppliers electronically using the Ariba system, which includes issuing purchase orders to and receiving invoices from its suppliers. In order to do business with the County, Contractor needs to register to establish a relationship with the County on the Ariba Network. The Ariba Network is a cloud-based electronic commerce network that allows buyers and sellers of goods and services to collaborate.

Contractor will not be charged for their relationship and/or any transactions with the County of Santa Clara on the Ariba Network.

Contractor shall provide and maintain an Ariba-compatible catalog of all products within the scope of the contract.

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5. Reports
Contractor shall be responsible for processing, discussing, and submitting reports upon request, which shall include, but not be limited to:

5.1 Spend Reports - Expenditures against the Agreement, including ability to provide total spend by the County, total spend for contracted services and products, and total spend by date.

5.2 Usage Reports - Includes but shall not be limited to the cumulative contract activity and any other analytical information as mutually agreed upon.

5.3 Upon request and as mutually agreed upon by County and Contractor, Contractor shall provide additional reports on items that are not contained in the spend or usage reports.

6. Invoicing

6.1 Invoices shall be provided to the County end user departments submitting the CRPO. Invoices shall include, but not be limited to the following information:

6.1.1 Fuel site location.

6.1.2 Date and time of transport.

6.1.3 Description(s) of product(s) provided.

6.1.4 Amount of fuel.

6.1.5 Total gallons and dollars by product.

6.1.6 Summary of fuel gallons applicable taxes.

6.1.7 Copy of OPIS Rack Price for the date of order/delivery.

6.1.8 Associated CRPO numbers(s); and

6.1.9 Associated Agreement number.

6.2 Contractor shall correct any invoices that include incorrect or missing information. Invoices cannot be processed until invoices are correct and approved by County department.

6.3 Contractor shall not invoice the County for any fees or charges not specifically listed in the final agreement.

6.4 Credit Memos - Contractor shall issue credit memos to the County identifying any amounts due back to the County for incorrect charges (e.g., overcharges, cancellations, non-contracted products, etc.).

E. COUNTY RESPONSIBILITIES

1. County shall issue a CRPO to the Contractor for all contracted products to be ordered against this Agreement.

1.1 CRPO issuance may need to be processed upon delivery of products by Contractor. For these instances, County shall issue CRPO's after delivery of products and receipt of invoice.

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1.2 County shall not process any invoices for payment until goods are delivered and received.

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EXHIBIT D
Insurance Requirements (B-2)
Indemnity
The Contractor shall indemnify, defend, and hold harmless the County of Santa Clara (hereinafter "County"), its officers, agents and employees from any claim, liability, loss, injury or damage arising out of, or in connection with, performance of this Agreement by Contractor and/or its agents, employees or sub-contractors, excepting only loss, injury or damage caused by the sole negligence or willful misconduct of personnel employed by the County. It is the intent of the parties to this Agreement to provide the broadest possible coverage for the County. The Contractor shall reimburse the County for all costs, attorneys' fees, expenses and liabilities incurred with respect to any litigation in which the Contractor contests its obligation to indemnify, defend and/or hold harmless the County under this Agreement and does not prevail in that contest.

Insurance
Without limiting the Contractor's indemnification of the County, the Contractor shall provide and maintain at its own expense, during the term of this Agreement, or as may be further required herein, the following insurance coverages and provisions:

A. Evidence of Coverage
Prior to commencement of this Agreement, the Contractor shall provide a Certificate of Insurance certifying that coverage as required herein has been obtained. Individual endorsements executed by the insurance carrier shall accompany the certificate. In addition, a certified copy of the policy or policies shall be provided by the Contractor upon request.

This verification of coverage shall be sent to the requesting County department, unless otherwise directed. The Contractor shall not receive a Notice to Proceed with the work under the Agreement until it has obtained all insurance required and such insurance has been approved by the County. This approval of insurance shall neither relieve nor decrease the liability of the Contractor.

B. Qualifying Insurers
All coverages, except surety, shall be issued by companies which hold a current policy holder's alphabetic and financial size category rating of not less than A- V, according to the current Best's Key Rating Guide or a company of equal financial stability that is approved by the County's Insurance Manager.

C. Notice of Cancellation
All coverage as required herein shall not be canceled or changed so as to no longer meet the specified County insurance requirements without 30 days' prior Agreement CW2239581
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D. Insurance Required
a.
b.

Commercial General Liability Insurance - for bodily injury (including death) and property damage which provides limits as follows:
a. Each occurrence - $1,000,000
b. General aggregate - $2,000,000
c. Products/Completed Operations aggregate - $2,000,000. d. Personal Injury - $1,000,000
General liability coverage shall include:

1. Premises and Operations

2. Products/Completed.

3. Personal Injury liability

4. Severability of interest

3. General liability coverage shall include the following endorsement. a copy of which shall be provided to the County:

Additional Insured Endorsement, which shall read:
"County of Santa Clara, and members of the Board of
Supervisors of the County of Santa Clara, and the officers, agents, and employees of the County of Santa Clara,
individually and collectively, as additional insureds." Insurance afforded by the additional insured endorsement shall apply as primary insurance, and other insurance maintained by the County of Santa Clara, its officers, agents, and employees shall be excess only and not contributing with insurance provided under this policy. Public Entities may also be added to the additional insured endorsement as applicable and the contractor shall be notified by the contracting department of these requirements.

4. Automobile Liability Insurance
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DocuSign Envelope ID: 8415C75E-195E-4409-AC77-02C990269891 For bodily injury (including death) and property damage which provides total limits of not less than one million dollars ($1,000,000) combined single limit per occurrence applicable to all owned, non-owned and hired vehicles.
4a. Aircraft/Watercraft Liability Insurance (Required if Contractor or any of its agents or subcontractors will operate aircraft or watercraft in the scope of the Agreement)
For bodily injury (including death) and property damage which provides total limits of not less than one million dollars ($1,000,000) combined single limit per occurrence applicable to all owned, non-owned and hired a i rcraft/wate rcra ft.

5. Workers' Compensation and Employer's Liability Insurance

1. Statutory California Workers' Compensation coverage including broad form all-states coverage.

2. Employer's Liability coverage for not less than one million dollars ($1,000,000) per occurrence.

E. Special Provisions
The following provisions shall apply to this Agreement:

1. The foregoing requirements as to the types and limits of insurance coverage to be maintained by the Contractor and any approval of said insurance by the County or its insurance consultant(s) are not intended to and shall not in any manner limit or qualify the liabilities and obligations otherwise assumed by the Contractor pursuant to this Agreement, including but not limited to the provisions concerning indemnification.

2. The County acknowledges that some insurance requirements contained in this Agreement may be fulfilled by self-insurance on the part of the Contractor. However, this shall not in any way limit liabilities assumed by the Contractor under this Agreement. Any self-insurance shall be approved in writing by the County upon satisfactory evidence of financial capacity. Contractors obligation hereunder may be satisfied in whole or in part by adequately funded self-insurance programs or self-insurance retentions.

3. Should any of the work under this Agreement be sublet, the Contractor shall require each of its subcontractors of any tier to carry the aforementioned coverages, or Contractor may insure subcontractors under its own policies.

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4. The County reserves the right to withhold payments to the Contractor in the event of material noncompliance with the insurance requirements outlined above.

F. Fidelity Bonds (Required only if contractor will be receiving advanced funds or payments)
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Before receiving compensation under this Agreement, Contractor will furnish County with evidence that all officials, employees, and agents handling or having access to funds received or disbursed under this Agreement, or authorized to sign or countersign checks, are covered by a BLANKET FIDELITY BOND in an amount of AT LEAST fifteen percent (15%) of the maximum financial obligation of the County cited herein. If such bond is canceled or reduced, Contractor will notify County immediately, and County may withhold further payment to Contractor until proper coverage has been obtained. Failure to give such notice may be cause for this Agreement, at the option of County.

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DocuSign Envelope ID: 8415C75E-195E-44D9-AC77-02C99D269B91 Exhibit E

COUNTY OF SANTA CLARA FEDERALLY REQUIRED CONTRACT

PROVISIONS
The federally-required contract provisions listed below are made a part of the Contractor's Contract with the County.

The term "Contractor", as used throughout this document shall mean the contractor identified in the Contract as Contractor, Provider, Consultant, or similar term.

The term "Contract" as used throughout this Exhibit shall mean the contract or other agreement, with exhibits, into which this Exhibit is incorporated.

The term "State" as used throughout this document shall mean the State of California and include any of its departments or agencies.

These federally required contract provisions will collectively be referenced as the "FEMA Contract Terms."
The terms and conditions of the Contract and the FEMA Contract Terms should be read to operate in concert, except where directly in conflict. In the event of a conflict between the terms of the Contract and the FEMA Contract Terms, and unless otherwise stated within the terms of this Exhibit, the FEMA Contract Terms shall govern and prevail.

A. No Obligation by the Federal Government
The Federal Government is not a party to this Contract and is not subject to any obligations or liabilities to the non-Federal entity, contractor, or any other party pertaining to any matter resulting from the Contract.

B. Access to Records
(1) Upon request, the Contractor agrees to provide the County, State, Federal Emergency Management Agency (FEMA) Administrator, the Comptroller General of the United States or any of their authorized representatives access to any books, documents, papers and records of the Contractor which are directly pertinent to the Contract for the purposes of making audits, examinations, excerpts and transcriptions. (2) The Contractor agrees to permit any of the foregoing parties to reproduce by any means whatsoever or to copy excerpts and transcriptions as reasonably needed. (3) Upon request, the Contractor agrees to provide the FEMA Administrator or the FEMA Administrator's authorized representatives access to construction or other work sites pertaining to the work being completed under the Contract.

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DocuSign Envelope ID: 8415C75EM195EM44D9MAC77M02C99D269B91 (4) In compliance with the Disaster Recovery Act of 2018, the County of Santa Clara and the Contractor acknowledge and agree that no language in this Contract is intended to prohibit audits or internal reviews by the FEMA Administrator or the Comptroller General of the United States.

C. Procurement of Recovered Materials
(1) In the performance of this Contract, the Contractor shall make maximum use of products containing recovered materials that are United States Environmental Protection Agency-designated items unless the product cannot be acquiredi. Competitively within a timeframe providing for compliance with the Contract performance schedule;
ii. Meeting Contract performance requirements; or
iii. At a reasonable price.
(2) Information about this requirement along with the list of EPA-designated items, is available at EPA's Comprehensive Procurement Guidelines web site, http://www.epa.gov/smm/comprehensive-procurement-guideline-cpg-program. (3) The Contractor also agrees to comply with all other applicable requirements of Section 6002 of the Solid Waste Disposal Act.

D. Department of Homeland Security (OHS) Seal, Logo and Flags.

The Contractor shall not use the OHS seal(s), logos, crests or reproductions of flags or likenesses of OHS agency officials without specific FEMA approval.

E. Compliance with Federal Law, Regulations, and Executive Orders This is an acknowledgement that FEMA financial assistance may be used to fund all or a portion of the Contract. The Contractor will comply with all applicable federal law, regulations, executive orders, FEMA policies, procedures, and directives.

F. Program Fraud and False or Fraudulent Statements or Related Acts The Contractor acknowledges that 31 USC Chapter 38 (Administrative Remedies for False Claims and Statements) applies to the Contractor's actions pertaining to this Contract.

G. Equal Employment Opportunity
If the Contract is for construction work, the provisions of this Section G shall apply. During the performance of this Contract, the Contractor agrees as follows:

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DocuSign Envelope ID: 8415C75E-195E-4409-AC77-02C990269891 (1) The Contractor will not discriminate against any employee or applicant for employment because of race, color, religion, sex, sexual orientation, gender identity, or national origin_ The Contractor will take affirmative action to ensure that applicants are employed, and that employees are treated during employment without regard to their race, color, religion, sex, sexual orientation, gender identity, or national origin. Such action shall include, but not be limited to the following: Employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The Contractor agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided setting forth the provisions of this nondiscrimination clause.
(2) The Contractor will, in all solicitations or advertisements for employees placed by or on behalf of the Contractor, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, sexual orientation, gender identity, or national origin.
(3) The Contractor will not discharge or in any other manner discriminate against any employee or applicant for employment because such employee or applicant has inquired about, discussed, or disclosed the compensation of the employee or applicant or another employee or applicant. This provision shall not apply to instances in which an employee who has access to the compensation information of other employees or applicants as a part of such employee's essential job functions discloses the compensation of such other employees or applicants to individuals who do not otherwise have access to such information, unless such disclosure is in response to a formal complaint or charge, in furtherance of an investigation, proceeding, hearing, or action, including an investigation conducted by the employer, or is consistent with the Contractor's legal duty to furnish information.
(4) The Contractor will send to each labor union or representative of workers with which he has a collective bargaining agreement or other contract or understanding, a notice to be provided advising the said labor union or workers' representatives of the Contractor's commitments under this section, and shall post copies of the notice in conspicuous places available to employees and applicants for employment. (5) The Contractor will comply with all provisions of Executive Order 11246 of September 24, 1965, and of the rules, regulations, and relevant orders of the Secretary of Labor.
(6) The Contractor will furnish all information and reports required by Executive Order 11246 of September 24, 1965, and by rules, regulations, and orders of the Secretary of Labor, or pursuant thereto, and will permit access to his books, records, and accounts by the administering agency and the Secretary of Labor for purposes of investigation to ascertain compliance with such rules, regulations, and orders.

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DocuSign Envelope ID; 8415C75E-195E-4409-AC77-02C990269891 (7) In the event of the Contractor's noncompliance with the nondiscrimination clauses of this Contract or with any of the said rules, regulations, or orders, this Contract may be canceled, terminated, or suspended in whole or in part and the Contractor may be declared ineligible for further Government contracts or federally assisted construction contracts in accordance with procedures authorized in Executive Order 11246 of September 24, 1965, and such other sanctions may be imposed and remedies invoked as provided in Executive Order 11246 of September 24, 1965, or by rule, regulation, or order of the Secretary of Labor, or as otherwise provided by law. (8) The Contractor will include the portion of the sentence immediately preceding paragraph (1) and the provisions of paragraphs (1) through (8) in every subcontract or purchase order unless exempted by rules, regulations, or orders of the Secretary of Labor issued pursuant to section 204 of Executive Order 11246 of September 24, 1965, so that such provisions will be binding upon each subcontractor or vendor. The Contractor will take such action with respect to any subcontract or purchase order as the administering agency may direct as a means of enforcing such provisions, including sanctions for noncompliance: Provided, however, that in the event a contractor becomes involved in, or is threatened with, litigation with a subcontractor or vendor as a result of such direction by the administering agency, the contractor may request the United States to enter into such litigation to protect the interests of the United States.

The applicant further agrees that it will be bound by the above equal opportunity clause with respect to its own employment practices when it participates in federally assisted construction work: Provided, That if the applicant so participating is a State or local government, the above equal opportunity clause is not applicable to any agency, instrumentality or subdivision of such government which does not participate in work on or under the Contract.

The applicant agrees that it will assist and cooperate actively with the administering agency and the Secretary of Labor in obtaining the compliance of contractors and subcontractors with the equal opportunity clause and the rules, regulations, and relevant orders of the Secretary of Labor, that it will furnish the administering agency and the Secretary of Labor such information as they may require for the supervision of such compliance, and that it will otherwise assist the administering agency in the discharge of the agency's primary responsibility for securing compliance.

The applicant further agrees that it will refrain from entering into any contract or contract modification subject to Executive Order 11246 of September 24, 1965, with a contractor debarred from, or who has not demonstrated eligibility for, Government contracts and federally assisted construction contracts pursuant to the Executive Order and will carry out such sanctions and penalties for violation of the equal opportunity clause as may be imposed upon contractors and subcontractors by the administering agency or the Secretary of Labor pursuant to Part II, Subpart D of the Executive Order. In addition, the applicant agrees that if it fails or refuses to comply with these undertakings, the administering agency may take any or all of the following actions: Cancel, terminate, or suspend in whole or in part this grant (contract, loan, insurance, guarantee); refrain from Agreement CW2239581
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Western States Oil Company

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DocuSign Envelope ID: 8415C75E-195E-44D9-AC77-02C99D269B91 extending any further assistance to the applicant under the program with respect to which the failure or refund occurred until satisfactory assurance of future compliance has been received from such applicant; and refer the case to the Department of Justice for appropriate legal proceedings.

H. Clean Air Act and the Federal Water Pollution Control Act The provisions of this Section H apply to contracts exceeding $150,000. Clean Air Act (1) The Contractor agrees to comply with all applicable standards, orders or regulations issued pursuant to the Clean Air Act, as amended, 42 U.S.C. § 7401 et seq. (2) The Contractor agrees to report each violation to the County and understands and agrees that the County will, in turn, report each violation as required to assure notification to the State, Federal Emergency Management Agency, and the appropriate Environmental Protection Agency Regional Office.
(3) The Contractor agrees to include these requirements in each subcontract exceeding $150,000 financed in whole or in part with Federal assistance provided by FEMA. Federal Water Pollution Control Act
(1) The Contractor agrees to comply with all applicable standards, orders or regulations issued pursuant to the Federal Water Pollution Control Act, as amended, 33 U.S.C. 1251 et seq.
(2) The Contractor agrees to report each violation to the County and understands and agrees that the County will, in turn, report each violation as required to assure notification to the State, Federal Emergency Management Agency, and the appropriate Environmental Protection Agency Regional Office.
(3) The Contractor agrees to include these requirements in each subcontract exceeding $150,000 financed in whole or in part with Federal assistance provided by FEMA.

I. Byrd Anti-Lobbying Amendment
Contractors who apply or bid for an award of $100,000 or more shall file the certification required by the Byrd-Anti-Lobbying amendment. Each tier certifies to the tier above that it will not and has not used Federal appropriated funds to pay any person or organization for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, officer or employee of Congress, or an employee of a Member of Congress in connection with obtaining any Federal contract, grant, or any other award covered by 31 U.S.C. § 1352. Each tier shall also disclose any lobbying with non-Federal funds that takes place in connection with obtaining any Federal award. Such disclosures are forwarded from tier to tier up to the recipient who in turn will forward the certification(s) to the awarding agency.

Agreement CW2239581
Between County of Santa Clara and
Western States Oil Company

Agenda Packet Page 171 of 293
DocuSign Envelope ID: 8415C75E-195E-44D9-AC77-02C99D269891 Required Certification:

APPENDIX A, 44 C.F.R. PART 18- CERTIFICATION REGARDING LOBBYING Certification for Contracts, Grants, Loans, and Cooperative Agreements The undersigned certifies, to the best of his or her knowledge and belief, that:
(1) No Federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of an agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement. (2) If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit Standard Form- LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions. (3) The undersigned shall require that the language of this certification be included in the award documents for all subawards at all tiers (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly.

This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by section 1352, title 31, U.S. Code.

Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure.

The Contractor, , certifies or affirms the truthfulness and accuracy of each statement of its certification and
disclosure, if any. In addition, the Contractor understands and agrees that the provisions of 31 U.S.C. Chap. 38, Administrative Remedies for False Claims and Statements, apply to this certification and disclosure, if any.

Signature of Contractor's Authorized Official
Name and Title of Contractor's Authorized Official
Agreement CW2239581
Between County of Santa Clara and
Western States Oil Company

Agenda Packet Page 172 of 293
DocuSign Envelope ID: 8415C75E-195E-44D9-AC77-02C99D269B91 Date
J. Contract Work Hours and Safety Standards Act
The provisions of this Section J apply to contracts over $100,000 that involve the employment of mechanics and laborers.
(1) Overtime requirements. No contractor or subcontractor contracting for any part of the Contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensation at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. (2) Violation; liability for unpaid wages; liquidated damages. In the event of any violation of the clause set forth in paragraph (1) of this section the contractor and any subcontractor responsible therefor shall be liable for the unpaid wages. In addition, such contractor and subcontractor shall be liable to the United States (in the case of work done under contract for the District of Columbia or a territory, to such District or to such territory), for liquidated damages. Such liquidated damages shall be computed with respect to each individual laborer or mechanic, including watchmen and guards, employed in violation of the clause set forth in paragraph (1) of this section, in the sum of $27 for each calendar day on which such individual was required or permitted to work in excess of the standard workweek of forty hours without payment of the overtime wages required by the clause set forth in paragraph
( 1) of th is section.
(3) Withholding for unpaid wages and liquidated damages. The County shall upon its own action or upon written request of an authorized representative of the Department of Labor withhold or cause to be withheld, from any moneys payable on account of work performed by the contractor or subcontractor under any such contract or any other Federal contract with the same prime contractor, or any other federally-assisted contract subject to the Contract Work Hours and Safety Standards Act, which is held by the same prime contractor, such sums as may be determined to be necessary to satisfy any liabilities of such contractor or subcontractor for unpaid wages and liquidated damages as provided in the clause set forth in paragraph (2) of this section. (4) Subcontracts. The contractor or subcontractor shall insert in any subcontracts the clauses set forth in paragraph (1) through (4) of this section and also a clause requiring the subcontractors to include these clauses in any lower tier subcontracts. The prime contractor shall be responsible for compliance by any subcontractor or lower tier subcontractor with the clauses set forth in paragraphs (1) through (4) of this section.

K. Debarment and Suspension
Agreement CW2239581
Between County of Santa Clara and
Western States Oil Company

Agenda Packet Page 173 of 293
DocuSign Envelope ID: 8415C75E-195E-44D9-AC77-02C99D269B91 (1) This Contract may be a covered transaction for purposes of 2 C.F.R. pt. 180 and 2 C.F.R. pt. 3000. As such the Contractor is required to verify that none of the Contractor, its principals (defined at 2 C.F.R. § 180.995), or its affiliates (defined at 2 C.F.R. § 180.905) are excluded (defined at 2 C.F.R. § 180.940) or disqualified (defined at 2 C.F.R. § 180.935).
(2) The Contractor must comply with 2 C.F.R. pt. 180, subpart C and 2 C.F.R. pt. 3000, subpart C and must include a requirement to comply with these regulations in any lower tier covered transaction it enters into.
(3) This certification is a material representation of fact relied upon by the County. If it is later determined that the Contractor did not comply with 2 C.F.R. pt. 180, subpart C and 2 C.F.R. pt. 3000, subpart C, in addition to remedies available to the County, the Federal Government may pursue available remedies, including but not limited to suspension and/or debarment.
(4) The bidder or proposer agrees to comply with the requirements of 2 C.F.R. pt. 180, subpart C and 2 C.F.R. pt. 3000, subpart C while this offer is valid and throughout the period of the Contract. The Contractor further agrees to include a provision requiring such compliance in its lower tier covered transactions.

L. Termination for Cause
If the Contract value exceeds $10,000, to the extent the Contract does not provide for termination for cause outside of this Exhibit, and in addition to any right to terminate for convenience as described in the Contract, the County may, after providing five days' written notice, terminate the Contract for the Contractor's failure to perform or observe any term, covenant, or condition of the Contract.

M. Remedies
In the event of a breach by the Contractor of any term, covenant, or condition of the Contract, the County shall have the right to pursue all available remedies at law or equity.

Except as expressly provided elsewhere in this Contract, each party's rights and remedies under this Contract are cumulative and in addition to, not exclusive of or in substitution for, any rights or remedies otherwise available to that party.

N. Contracting with Small and Minority Businesses, Women's Business Enterprises, and Labor Surplus Area Firms
If this Contract was awarded in a competitive procurement, Contractor engages subcontractors to perform work under the Contract, and the Contract is for $10,000 or above, Contractor shall place qualified small and minority businesses and women's business enterprises on solicitation lists used in the procurement; solicit small and minority business and women's business enterprises; divide total requirements, when economically feasible, into smaller tasks or quantities to permit maximum participation by small and minority businesses and women's business enterprises; establish delivery Agreement CW2239581
Between County of Santa Clara and
Western States Oil Company

Agenda Packet Page 174 of 293
DocuSign Envelope ID: 8415C75E-195E-44D9-AC77-02C99D269B91 schedules, where the requirement permits, which encourage participation by small and minority businesses and women's business enterprises; and use the services and assistance, as appropriate, of such organizations as the Small Business Administration and the Minority Business Development Agency of the Department of Commerce.

0. Subcontracts
To the extent applicable, the Contractor shall include the provisions of this Exhibit in all subcontracts.

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Agreement CW2239581
Between County of Santa Clara and
Western States Oil Company

Agenda Packet Page 175 of 293
Department of General Services
Procurement Division
707 Third Street, 2nd Floor
West Sacramento, CA 95605-2811
State of California

STATEWIDE CONTRACT
USER INSTRUCTIONS All changes to most recent Supplement are in bold red italic. Additions are enclosed in asterisks, *, and deletions are enclosed in brackets, [].

MANDATORY
ISSUE AND EFFECTIVE DATE: 3/2/2023
CONTRACT NUMBER: 1-23-91-02B
DESCRIPTION: Bulk Fuel – Regular Unleaded
Gasoline, Ethanol (E85), Diesel #2 Ultra
Low Sulfur, and Red Dyed Diesel #2
Ultra Low Sulfur
SUPER DISTRICTS: B – Districts 3 & 4
C – Districts 6 & 10
E – Districts 8 & 9
F – Districts 11 & 12
CONTRACTOR: Pinnacle Petroleum
CONTRACT TERM: 3/2/2023 through 3/1/2026
STATE CONTRACT ADMINISTRATOR: Amanda Lewis
(279) 946-7876
[email protected]
The contract user instructions, products, and pricing are included herein. All purchase documents issued under this contract incorporate the contract terms and applicable California General Provisions:

Non-IT General Provisions (rev 6/21/2022)
Cal eProcure link: www.caleprocure.ca.gov

ORDER PLACEMENT INFORMATION
Mailing Address:

Pinnacle Petroleum Inc.
16651 Gemini Lane
Huntington Beach, Ca.
92647
Fax/Email:

Fax: (714) 841-8855
Email:
[email protected]
Contact Information:

Pinnacle Petroleum Inc.

Liz McKinley
Phone: (714) 841-8877
Email:
[email protected]
Agenda Item No. 7.L.

Attachment 3
Agenda Packet Page 176 of 293

STATE OF CALIFORNIA

DEPARTMENT OF GENERAL SERVICES

PROCUREMENT DIVISION
Contract (Mandatory) 1-23-91-02B
Contract User Instructions

All changes to most recent Supplement are in bold red italic. Additions are enclosed in asterisks; deletions are enclosed in brackets.

SUMMARY OF CHANGES
Supplement
Number Description Date
N/A Original Contract Posted 3/2/2023
All other terms and conditions remain the same.

Agenda Packet Page 177 of 293

STATE OF CALIFORNIA

DEPARTMENT OF GENERAL SERVICES

PROCUREMENT DIVISION
Contract (Mandatory) 1-23-91-02B
Contract User Instructions

Agenda Packet Page 178 of 293

STATE OF CALIFORNIA

DEPARTMENT OF GENERAL SERVICES

PROCUREMENT DIVISION
Contract (Mandatory) 1-23-91-02B
Contract User Instructions

SCOPE
The State’s contract with Pinnacle Petroleum, Inc. (Contractor) provides Bulk Fuel – Regular Unleaded Gasoline, Ethanol (E85), Diesel #2, and Red Dyed Diesel #2 at contracted pricing to the State of California and local governmental agencies in accordance with the requirements of Contract # 1-23-91-02B. The Contractor shall supply the entire portfolio of products as identified in the contract and will be the primary point of contact for data collection, reporting, and distribution of Bulk Fuel – Regular Unleaded Gasoline, Ethanol (E85), Diesel #2, and Red Dyed Diesel #2 to the State.

The contract term is for three (3) years with an option to extend the contract for two (2) additional one (1) year periods or portion thereof. The terms, conditions, and prices for the contract extension option shall be by mutual agreement between the Contractor and the State. If a mutual agreement cannot be met the contract will expire at the end of the current contract term.

CONTRACT USAGE/RULES
A. State Departments
• The use of this contract is mandatory for all State of California departments. • State departments must adhere to all applicable State laws, regulations, policies, best practices, and purchasing authority requirements, e.g. California Codes, Code of Regulations, State Administrative Manual, Management Memos, and State Contracting Manual Volume 2, as applicable.
• Prior to placing orders against this contract, State departments must have been granted non-IT purchasing authority by the Department of General Services, Procurement Division (DGS-PD) for the use of this statewide contract. State departments that have not been granted purchasing authority by DGS-PD for the use of the State’s statewide contracts may contact DGS-PD’s Purchasing Authority Management Section by e-mail at [email protected].
• State departments must have a Department of General Services (DGS) agency billing code prior to placing orders against this contract. Ordering departments may contact their Purchasing Authority contact or their department’s fiscal office to obtain this information.

B. Local Governmental Agencies
• Local governmental agency use of this contract is optional. • Local government agencies are defined in Public Contract Code Chapter 2, Section 10298 (a) (b) and 10299 (b); this includes the California State Universities (CSU) and University of California (UC) systems, K-12 schools and community colleges empowered to expend public funds for the acquisition of products While the State makes this contract available to local governmental agencies, each local governmental agency should determine whether this contract is consistent with its procurement policies and regulations.

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STATE OF CALIFORNIA

DEPARTMENT OF GENERAL SERVICES

PROCUREMENT DIVISION
Contract (Mandatory) 1-23-91-02B
Contract User Instructions

• Local governmental agencies shall have the same rights and privileges as State departments under the terms of this contract. Any local governmental agencies desiring to participate shall be required to adhere to the same responsibilities as do State departments and have no authority to amend, modify or change any condition of the contract.
• A DGS issued billing code is not required for local governmental agencies to place orders against this contract.

C. Ordering Agencies
Unless otherwise specified within this document, the term “ordering agencies” will refer to all State departments and/or local governmental agencies eligible to utilize this contract. Ordering and/or usage instructions exclusive to State departments or local governmental agencies shall be identified within each section.

DGS ADMINISTRATIVE FEES
A. State Departments
The DGS will bill each State department an administrative fee for use of this statewide contract. The administrative fee should NOT be included in the order total, nor remitted before an invoice is received from DGS.

Current fees are available online in the Price Book & Directory of Services (go to Price Book Download and click on Purchasing under Procurement Division).

B. Local Governmental Agencies
For all local government agency transactions issued against the contract, the Contractor is required to remit the DGS-PD an Incentive Fee of an amount equal to

1.25 percent of the total purchase order amount excluding taxes and freight. This Incentive Fee shall not be included in the local governmental agency’s purchase price, nor invoiced or charged to the local governmental agency. All prices quoted to local governmental agencies shall reflect State contract pricing, including any and all applicable discounts, and shall include no other add-on fees.

SB/DVBE OFF-RAMP PROVISION
There is no SB/DVBE off ramp associated with this contract.

EXEMPT PURCHASES
There are no exempt purchases associated with this contract.

PROBLEM RESOLUTION/SUPPLIER PERFORMANCE
Ordering agencies and/or Contractor shall inform the State Contract Administrator of any technical or contractual difficulties encountered during contract performance in a timely Agenda Packet Page 180 of 293

STATE OF CALIFORNIA

DEPARTMENT OF GENERAL SERVICES

PROCUREMENT DIVISION
Contract (Mandatory) 1-23-91-02B
Contract User Instructions

manner. This includes and is not limited to informal disputes, supplier performance, outstanding deliveries, etc. The ordering agency should include all relevant information and/or documentation (e.g., purchase documents).

CONTRACT ITEMS
All available contract line items are listed on Attachment A – Contract Pricing (and Additional/Special Charges information for Super Districts B, C, E, and F.

The State will use the Oil Price Information Service (OPIS) to determine Region Base Market Price (RBMP), the CAR Cost Fee (Cap-At-The-Rack), and the LCFS Cost Fee (Low Carbon Fuel Standard). There are a total of six (6) Super Districts represented by the RBMP, CAR Cost Fee, and LCFS Cost Fee for Unleaded Regular Gasoline, Diesel #2 Ultra Low Sulfur, and Red Dyed Diesel #2 Ultra Low Sulfur. The six (6) Super Districts are identified as Eureka, Sacramento, Fresno, Los Angeles, Barstow, and San Diego.

For the base price of Ethanol (E85) Fuel, the State will use the weekly price quoted in the OPIS Ethanol & Biodiesel Information Services Publication under the Key Renewable Fuels Regional Averages section for product description E-85 Racks, West Coast.

For purposes of this contract, the following racks will be used for the RBMP, CAR Cost Fee, LCFS Cost Fee, and E85 base price for the counties included in Super Districts B, C, E, and F:

Super
District
Caltrans
District
Combine
d
Market Base
OPIS
(Unleaded,
Diesel #2,
Diesel #2 with
Red Dye)
Market
Base E-85 Counties
B 3 and 4 Sacramento West Coast
Alameda, Butte, Colusa,
Contra Costa, El Dorado,
Glenn, Marin, Napa, Nevada,
Placer, San Francisco, San
Mateo, Santa Clara, Sierra, Solano, Sonoma, Sacramento, Sutter, Yolo, Yuba
C 6 and 10 Fresno West Coast
Alpine, Amador, Calaveras,
Fresno, Kern, Kings, Madera,
Mariposa, Merced, Tulare,
Alpine, San Joaquin,
Stanislaus, Tuolumne
E 8 and 9 Barstow West Coast Inyo, Mono, Riverside, San Bernardino,
F 11 and 12 San Diego West Coast Imperial, Orange, San Diego Agenda Packet Page 181 of 293

STATE OF CALIFORNIA

DEPARTMENT OF GENERAL SERVICES

PROCUREMENT DIVISION
Contract (Mandatory) 1-23-91-02B
Contract User Instructions

If an OPIS publication is modified, the State reserves the right to re-establish the base price calculation method or cancel all or part of the contract without prejudice against any party to the contract.

RBMP, CAR Cost Fee, LCFS Cost Fee, and E85 base price will be based on OPIS data and will be posted daily by DGS-PD.

Cost Structure
Contract Composite Price for each fuel type shall be calculated according to the following table:

FUEL TYPE OPIS INDEX CONTRACT COMPOSITE PRICE
Unleaded Regular
Gasoline
“Time of Delivery” “Rack Average”

OPIS GROSS CARFG ETHANOL
(10.0%).

RBMP + CAR Cost fee + LCFS Cost
fee + Differential = Composite Price
Diesel #2 Ultra Low
Sulfur
Daily OPIS Closing Benchmark File

OPIS GROSS CARB ULTRA LOW
SULFUR DISTILLATE PRICES**
RACK AVERAGE.

RBMP + CAR Cost fee + LCFS Cost
fee + Differential = Composite Price
Red Dyed Diesel Ultra
Low Sulfur
OPIS Closing Benchmark File OPIS

GROSS CARB ULTRA LOW
SULFUR DISTILLATE PRICES**
Rack AVERAGE plus ($0.01/gal).

RBMP + CAR Cost fee + LCFS Cost
fee + Differential + .01 per gallon =
Composite Price
Ethanol (E85) OPIS Ethanol & BioDiesel Information
Services Publication under the Key
Renewable Fuels Regional Averages
section for product description E-85
Racks, West Coast.

RMBP + Differential = Composite Price
Differentials:

All Differential prices quoted shall be:
• Exempt from: Federal Excise Tax
• Exclusive of: State Sales Tax, Local Sales Tax, California Motor Vehicle Fuel Tax, Leaking Underground Storage Tank Tax, Oil Spill Liability Trust Fund Tax, CAR cost fee, LCFS cost fee, AB 32 Fees.

These taxes and fees shall be listed separately on invoices and shall not be a component of the differential price. Any and all charges, levies, and/or fees not listed above shall be a component of the differential price.

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STATE OF CALIFORNIA

DEPARTMENT OF GENERAL SERVICES

PROCUREMENT DIVISION
Contract (Mandatory) 1-23-91-02B
Contract User Instructions

PUBLICATION POSTING
The DGS-PD tracks and monitors fuel charges. The DGS-PD will prepare fuel charge documents and email to the Contractors and all end users of the contract daily the RBMP, CAR Cost Fees, and LCFS Cost Fees for all fuels.

The Contractor shall forward a copy of the DGS-PD Daily Fuel Post to all delivery locations that have been invoiced for payment to substantiate the accuracy of the base pricing on the invoice. To request the Daily Fuel Post, complete Attachment D – Fuel Rate Information Request Form and send to:

[email protected] or [email protected]

SPECIFICATIONS
All products on Attachment A, Contract Pricing, must meet or exceed the specifications in following specification attachment:

Attachment E – State of California Bid Specifications:
• Gasoline, Unleaded Regular, Bid Specification Number 9130-6166A, dated 7/18/2022
• Diesel Fuel, Type 2-D, Bid Specification Number 9130-6166B, dated 7/18/2022 • Ethanol (E85), Bid Specification Number 9130-6166C, dated 7/18/2022

CUSTOMER SERVICE
The Contractor will have a customer service unit that is dedicated to this contract. The customer service unit provides office and personnel resources for responding to inquiries, including telephone and email coverage weekdays during the hours of 8:00 a.m. - 5:00 p.m., PT.

The customer service unit shall be staffed with individuals that:
• Are trained in the requirements of this contract
• Have the authority to take administrative action to correct problems that may occur The Contractor’s customer service unit shall respond to all customer inquiries within one (1) business day of initial contact.

Contact Phone Email
Liz McKinley (714) 841-8877 [email protected] Agenda Packet Page 183 of 293

STATE OF CALIFORNIA

DEPARTMENT OF GENERAL SERVICES

PROCUREMENT DIVISION
Contract (Mandatory) 1-23-91-02B
Contract User Instructions

PURCHASE EXECUTION
A. State Departments
1) Std. 65 Purchase Documents
State departments not transacting in FI$CAL must use the Purchasing Authority Purchase Order (Std. 65) for purchase execution. An electronic version of the Std. 65 is available at the Office of State Publishing web site (select STD Forms).

All Purchasing Authority Purchase Orders (Std. 65) must contain the following:
• Agency Order Number (Purchase Order Number)
• Ordering Agency Name
• Agency Billing Code
• Purchasing Authority Number
• Leveraged Procurement Number (Contract Number)
• Supplier Information (Contact Name, Address, Phone Number, Fax Number, E-mail)
• Line Item number
• Quantity
• Unit of Measure
• Commodity Code Number
• Product Description
• Unit Price
• Extension Price
• Tank Size*
• Tank Fitting Type*
*Attachment B – Delivery Locations may not be the most up to date listing for tank size and tank fitting type. In order to ensure accurate Minimum Order calculation and appropriate equipment at the time of delivery, please list these items on the purchase order.

The Contractor shall not accept incomplete orders from ordering agencies. 2) FI$CAL Purchase Documents
State departments transacting in FI$CAL will follow the FI$CAL procurement and contracting procedures.
3) Blanket Orders
The use of blanket purchase orders against this statewide contract are allowed.

Ordering agencies issuing blanket purchase orders must adhere to the following guidelines:

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STATE OF CALIFORNIA

DEPARTMENT OF GENERAL SERVICES

PROCUREMENT DIVISION
Contract (Mandatory) 1-23-91-02B
Contract User Instructions

a) The order does not cross into different Fiscal Years. b) The order is only used for items on the contract.
c) The order does not exceed the contract period.
d) All orders placed against the blanket purchase order must be in writing. e) When funds are exhausted a new order is issued.
f) The order is issued only to one contract supplier.

B. Local Governmental Agencies
Local governmental agencies may use their own purchase document for purchase execution. The purchase documents must include the same data elements as listed above (Exception: Purchasing Authority Number and Billing Code which are used by State departments only).

MINIMUM ORDER
Minimum delivery quantity shall be 70 percent of tank capacity for below ground tanks and 60 percent of tank capacity for above ground tanks. Orders for less than the minimum order quantity shall be delivered at the contract price plus a “Premium” of not more than ten cents ($0.10) per gallon delivered. The contract allows for a two percent variance before the less than minimum fee applies. If the ordered amount meets the minimum order requirement but upon delivery the tank will not hold the minimum order quantity, the Contractor may charge the Premium for Less Than Minimum Delivery on the amount delivered.

Deliveries for less than the minimum order quantity required for “TANK TESTING” will not be purchased against the contract.

ORDERING PROCEDURE
Ordering agencies are to submit appropriate purchase documents directly to the Contractor via one of the following ordering methods:
• U.S. Mail
• Facsimile
• Email
The Contractor’s Order Placement Information is as follows:

ORDER PLACEMENT INFORMATION
U.S. Mail:

Pinnacle Petroleum Inc.
16651 Gemini Lane
Huntington Beach, Ca.
92647
Facsimile:
(714)841-8855
Email:
[email protected]
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STATE OF CALIFORNIA

DEPARTMENT OF GENERAL SERVICES

PROCUREMENT DIVISION
Contract (Mandatory) 1-23-91-02B
Contract User Instructions

When using any of the ordering methods specified above, all State departments must conform to proper State procedures.

ORDER ACCEPTANCE
The Contractor shall accept orders from any ordering agency. The Contractor shall not accept purchase documents for this contract that:
• Are incomplete
• Contain non-contract items
• Contain non-contract terms and conditions
The Contractor must not refuse to accept orders from any ordering agency for any other reason without written authorization from the State Contract Administrator.

Contractor has the option to reject orders from CALFIRE during fire season.

ORDER RECEIPT ACKNOWLEDGEMENT
The Contractor will provide ordering agencies with an email or facsimile Order Receipt Acknowledgement within two (2) working days of receipt of purchase document. The Order Receipt Acknowledgement shall include the following information:
• Ordering agency name
• Agency order number (purchase order number)
• Purchase order total cost
• Total Quantity of Fuel Ordered in Gallons
• Anticipated delivery date

DELIVERY SCHEDULES
Delivery for orders placed against this contract shall be in accordance with the following:

A. Locations
Delivery shall be made to the specified locations listed on Attachment B – Delivery Locations for Super Districts B, C, E, and F. All deliveries made in a tank wagon must be metered. Deliveries are to be made to the location specified on the individual purchase order. Deliveries to remote locations may, by mutual agreement between the receiving location and the Contractor, be delivered on a regularly scheduled “keep full” basis, with no additional charges to the State.

B. Add, Delete or Change Delivery Locations
To add, delete or change delivery location(s), submit Attachment C – Delivery Location Addition/Change Request Form directly to the State Contract Administrator.

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STATE OF CALIFORNIA

DEPARTMENT OF GENERAL SERVICES

PROCUREMENT DIVISION
Contract (Mandatory) 1-23-91-02B
Contract User Instructions

C. Delivery Equipment
Contractor will be required to make deliveries at the time specified in vehicles suitable for each individual location, and for the quantity of fuel ordered. These vehicles shall be equipped as required by applicable laws, rules or regulations with all components, such as connectors and hoses of the proper size, length, etc., necessary to successfully complete delivery. All delivery vehicles and/or trailers must have accurate metering equipment to enable state personnel to verify quantities delivered.

It is the responsibility of the Contractor to verify the proper connection and hose before the first delivery.

Contractor shall perform all deliveries to facilities in a safe and professional manor.

Contractor’s equipment shall be in good working order condition and all personnel shall be trained in safety measures to preclude accidents endangering personnel or property.

Many of the delivery locations are semi-remote and access may only be possible over narrow, winding, unpaved roads. These roads may often limit delivery to trucks without trailers and in some instances smaller than normal trucks may be required. A lack of familiarity with a delivery location will in no way relieve a contractor from their responsibility to fulfill the terms and conditions of the resulting contract.

D. Schedule
Delivery of ordered product shall be completed in full within three (3) working days after receipt of an order (ARO). Since receiving hours for each ordering agency will vary by facility, it will be the Contractor’s responsibility to check with each ordering agency for their specific delivery hours before delivery occurs.

The Contractor must notify the ordering agency within twelve (12) hours of scheduled delivery time, if delivery cannot be made within the time frame specified on the Order Receipt Acknowledgement.

The Contractor is requested to make deliveries in Los Angeles County, Orange County, San Bernardino Metropolitan Area, and San Diego Metropolitan Area during off-peak hours. Off-peak hours are Monday through Friday, 10:00 AM to 4:00 PM PT.

E. Security Requirements
Deliveries may be made to locations inside secure grounds that require prior clearances or special entry procedures for delivery drivers.

Security procedures may vary from facility to facility. The Contractor will be responsible for contacting the secure location for security procedures, hours of operation for deliveries and service, dress code, and other rules of delivery.

Agenda Packet Page 187 of 293

STATE OF CALIFORNIA

DEPARTMENT OF GENERAL SERVICES

PROCUREMENT DIVISION
Contract (Mandatory) 1-23-91-02B
Contract User Instructions

Deliveries that are delayed due to drivers not being cleared to enter secure grounds may be cause for contract default.

EMERGENCY/EXPEDITED ORDERS AND ADDITIONAL CHARGES
A. Urgent Deliveries:

Contractor shall make urgent deliveries during regular working hours for minimum delivery requirements within two (2) working days ARO at NO ADDITIONAL COST to the State or local agencies. Urgent deliveries are not anticipated to occur often and should be kept to a minimum by the ordering State or local agencies.

B. Emergency Deliveries: Deliveries requested outside the regular working hours of 8:00 a.m. to 5:00 p.m. and State observed holidays shall be considered an emergency.

Orders may be placed by telephone, followed by a purchase order sent to the Contractor by facsimile or US mail. Emergency delivery invoice must accompany the fuel invoice for payment of the emergency delivery fee. The emergency delivery charge shall not exceed $120.00 per delivery. Emergency Delivery fees are not applicable to late deliveries that occur outside of regular working hours or holidays.

C. Demurrage Charge: During normal delivery hours of 8:00 a.m. to 5:00 p.m. the Contractor’s truck shall be admitted to the delivery site within five (5) minutes of arrival (excluding security requirements). If the Contractor attempts to deliver fuel to a delivery site and the Contractor’s truck is detained beyond the five (5) minute grace period at the delivery site for reasons such as locked gates, unavailable receiving personnel, etc. caused by the ordering agency, the Contractor shall be entitled to Demurrage fee.

Demurrage time shall be invoiced separately and supported by appropriate documentation (delivery logs, contact names, etc.). The demurrage time invoice must accompany the fuel invoice for payment of the demurrage fee. The demurrage fee shall not exceed $2.50 per minute and not exceed $150.00 per delivery. Charges, if applicable, will be applied to the amount of time the Contractor’s truck was detained minus the five (5) minute grace period and not including time for security requirements.

D. Trip Charge: During normal delivery hours of 8:00 a.m. to 5:00 p.m., the Contractor’s truck, upon arrival, shall be admitted to the delivery site without delay. If the Contractor attempts to deliver fuel to a delivery site and is not admitted to the delivery site for reasons caused by the ordering agency the Contractor shall be paid a trip charge fee.

Trip charge time shall be invoiced separately and supported by appropriate documentation (agreed upon delivery time, delivery logs, contact names, etc.). A trip charge fee invoice must accompany the fuel invoice for payment of trip charge fee. The trip charge shall not exceed $250.00 per delivery.

E. Standing Time: The State shall be entitled to standing time for up to one (1) hour at no charge for the purposes of unloading. A maximum charge of $1.00 per minute shall be assessed for standing time in which the carrier’s equipment is detained through no fault of the carrier, in excess of the one free hour. Charged time shall be supported with the appropriate documents. For payment to be processed, the Agenda Packet Page 188 of 293

STATE OF CALIFORNIA

DEPARTMENT OF GENERAL SERVICES

PROCUREMENT DIVISION
Contract (Mandatory) 1-23-91-02B
Contract User Instructions

standing time billing must accompany, on a separate invoice, the fuel billing. Start time shall begin when the carrier is ready to hook-up to the fuel tank. Each time shall conclude when carrier disconnects or is finished loading fuel into the tank.

F. Premium for Less Than Minimum Delivery: Minimum delivery quantity shall be 70 percent of tank capacity for below ground tanks and 60 percent of tank capacity for above ground tanks. The contract allows for a 2 percent variance before the fee applies. Deliveries for less than the minimum order quantity shall be delivered at the contract price plus a “PREMIUM” of not more than ten cents ($0.10) per gallon delivered. For payment to be processed, the Less Than Minimum Delivery Fee billing must accompany, on a separate invoice, the fuel billing. Deliveries for less than the minimum order quantity required for “TANK TESTING” will not be purchased against this contract. If ordered amount meets the minimum delivery requirement, but upon delivery, the tank will not hold the minimum delivery quantity, the Contractor may charge the Premium for Less Than Minimum Delivery on the amount delivered.

G. Late Delivery (Charged to the Contractor): The parties to this agreement acknowledge that the ordering agency shall incur actual damages should the Contractor fail to deliver the fuel as specified in the contract delivery requirements.

Late Delivery charges must be supported by appropriate documentation (delivery logs, contact names, etc.). It is agreed that the Contractor will pay the ordering agency twenty-five ($0.25) cents per gallon per order for late delivery of fuel, and the ordering agency will make an adjustment to be reflected on the invoice. Normal delivery working hours are 8:00 a.m. to 5:00 p.m. Monday through Friday, except State observed holidays. (The Late Delivery Fee is fixed at $0.25 per gallon).

H. Winterization: Winterization shall be available for purchase from the Contractor during the winter months which typically start the month of October through the month of April each contract year (may vary depending on location). The purchase of winterization shall be added to fuel authorized only by State of California Departments and participating local agencies at a maximum cost of five cents ($0.05) per gallon.

FREE ON BOARD (F.O.B.) DESTINATION
All prices are F.O.B. destination; freight prepaid by the Contractor, to the ordering agency’s receiving point. Responsibility and liability for loss or damage for all orders will remain with the Contractor until final inspection and acceptance, when all responsibility will pass to the ordering agency, except the responsibility for latent defects, fraud, and the warranty obligations.

BILL OF LADING
Contractor shall provide a Bill of Lading (BOL) with each fuel delivery.

Agenda Packet Page 189 of 293

STATE OF CALIFORNIA

DEPARTMENT OF GENERAL SERVICES

PROCUREMENT DIVISION
Contract (Mandatory) 1-23-91-02B
Contract User Instructions

SAFETY DATA SHEET
The Contractor shall provide a Safety Data Sheet for product(s) subject to Title 8 of the California Code of Regulations, Section 5194, Hazard Communication. The Safety Data Sheet is to be prepared and delivered in accordance with this Section.

CONTRACT ADMINISTRATION
Both the State and the Contractor have assigned contract administrators as the single points of contact for problem resolution and related contract issues.

Administrator
Information DGS-PD Pinnacle Petroleum Inc.

Contact Name: Amanda Lewis Liz McKinley
Telephone: (279) 946-7876 (714) 841-8877
Facsimile: NA (714)841-8855
Email: [email protected] [email protected] Address: DGS/Procurement Division
Attn: AMANDA LEWIS
707 Third Street, 2nd Floor, MS 201
West Sacramento, CA 95605
Pinnacle Petroleum Inc.

Attn: LIZ MCKINLEY
16651 Gemini Lane
Huntington Beach CA 92647

RANDOM SAMPLE COMPLIANCE REVIEW
The State has the option of randomly sampling offered products from any order to ensure compliance to contract requirements. Any products failing random sample review will be replaced by the Contractor free of charge and re-evaluated by the State.

The State reserves the right to reject non-compliant fuel. If the test analysis of sampled fuel indicates non-compliance, the Contractor shall be responsible for all costs related to the test analysis, removal, and disposal of non-compliant fuel from affected site storage tanks. Contractor may also be liable for any equipment damaged as a result of noncompliant fuel.

PRODUCT RECALL PROCEDURES
The Contractor shall provide product recall notification, regardless of level, in writing to the State Contract Administrator and each ordering agency through the most expedient method possible. The notices, at a minimum, shall include a complete product description and/or identification, contract number, delivery order number and disposition instructions.

The Contractor shall issue replacement of product or credit for any product removed or recalled. Each ordering agency shall have the option of accepting either replacement product or credit in exchange for recalled/removed products.

Agenda Packet Page 190 of 293

STATE OF CALIFORNIA

DEPARTMENT OF GENERAL SERVICES

PROCUREMENT DIVISION
Contract (Mandatory) 1-23-91-02B
Contract User Instructions

INVOICING
Ordering agencies may require separate invoicing, as specified by each ordering agency.

Invoices will contain the following information:
• Contractor’s name, address, and telephone number
• Contract Number
• Agency Order Number (Purchase Order Number)
• Line-Item Number
• Quantity purchased
• Contract Unit Price and Extension
• State sales and/or use tax
• Prompt payment discounts/cash discounts, if applicable • Totals for each order
Invoice prices shall be itemized showing the RBMP, CAR Cost fee, LCFS Cost fee, the Differential, and Additional Charges, (region base market price + differential) per gallon, Extension Price, and appropriate taxes and fees.

Invoices and payments shall be for net metered gallons delivered. Contractor must charge the agency for net metered gallons delivered only. Contractor shall provide with invoice a copy of a receipt of gallons delivered. Additionally, a copy of the “Bill of Lading” from the fuel terminal shall accompany all invoices for all deliveries.

The Contractor must obtain prior approval from the DGS contract administrator before adding and/or modifying any new changes to the agency invoice.

State Departments are Federal Excise Tax exempt. DGS-PD will be responsible for furnishing all applicable exception certificates upon request from the Contractor. Local agencies shall be responsible for furnishing their own applicable exception certificates upon request from the contractor.

The State’s obligation to make payment pursuant to the contract is subject to availability of appropriated funds. Receipt of a Purchasing Authority Purchase Order (STD. 65) or Purchase Order in FI$Cal under this contract is proof of encumbered funds for that order.

PAYMENT
A. Terms
Payment terms for this contract are net forty-five (45) days. Payment will be made in accordance with the provisions of the California Prompt Payment Act, Government Code Section 927, et seq. Unless expressly exempted by statute, the Act requires State departments to pay properly submitted, undisputed invoices not more than fortyfive (45) days after the date of acceptance of goods, performance of services, or receipt of an undisputed invoice, whichever is later.

Agenda Packet Page 191 of 293

STATE OF CALIFORNIA

DEPARTMENT OF GENERAL SERVICES

PROCUREMENT DIVISION
Contract (Mandatory) 1-23-91-02B
Contract User Instructions

B. CAL-Card Use
Use of the CAL-Card for payment of invoices is not allowed under this statewide contract.

C. Payee Data Record
Each State department’s accounting office must have a copy of the Contractor’s Payee Data Record (Std. 204) in order to process payments. State departments should forward a copy of the Std. 204 to their accounting offices. Without the Std. 204, payment may be unnecessarily delayed. State departments should contact the Contractor for copies of the Payee Data Record.

CALIFORNIA SELLER’S PERMIT
The California seller permit number for the Contractor is listed below. Ordering Agencies can verify that permits are currently valid at the following website: www.cdtfa.ca.gov.

State departments must adhere to the file documentation identified in the State Contracting Manual Volume 2.

Contractor Name Seller Permit #
Pinnacle Petroleum 99-661168

RECYCLED CONTENT
There is no recycled content associated with this contract.

SB PARTICIPATION
The Small Business (SB) certification and percentage for the Contractor and subcontractor are listed below. State departments can verify that the certifications are currently valid at the following website: www.caleprocure.ca.gov
Name
Prime or
Subcontract
or
OSDS
Certification
#
SB
Percent
(%)
First Fuel Subcontractor 2005329 25%
The Contractor will meet the contract SB participation percentages as follows:

State departments must identify subcontractors on individual purchase documents whenever subcontractors are used.

The Contractor has committed to SB participation at total statewide contract levels of 25 percent, respectively.

Agenda Packet Page 192 of 293

STATE OF CALIFORNIA

DEPARTMENT OF GENERAL SERVICES

PROCUREMENT DIVISION
Contract (Mandatory) 1-23-91-02B
Contract User Instructions

Individual orders may have no applicable participation or may have participation greater than that of the total contract commitment. Ordering agencies must verify the participation amount with the Contractor. The exact participation percentage levels for each purchase order will be determined on an order-by-order basis in cooperation with the Contractor prior to submittal of a Purchasing Authority Purchase Order (STD 65).

The DGS-PD, as the awarding department, has assessed the Contractor and subcontractor certifications and CUF during the solicitation evaluation process. As a result, when executing purchase documents pursuant to this contract it is not necessary for State departments operating under statewide contract purchasing authority to request the completion of a Bidder Declaration document or perform additional CUF analysis. The department should make a notation of this within their procurement file.

Any irregularities or concerns regarding prime or SB/DVBE sub-contractor responsibilities are to be immediately documented and reported to the State Contract Administrator for further investigation. Information provided to the State Contract Administrator includes, but is not limited to:
• Copy of executed purchase document
• Value-added service description
• Work performance issue or concern
• State department contact name, email, and phone number State departments may request from the Contractor a monthly report providing the SB participation levels on purchase orders.

BIDDER DECLARATION/COMMERCIALLY USEFUL FUNCTION (CUF)

CERTIFICATIONS
The DGS-PD, as the awarding department, has assessed the Contractor and subcontractor certifications, (i.e. Darfur, Russian Sanctions, SB/DVBE, etc.), Bidder Declaration, and CUF during the solicitation evaluation process. Consequently, when executing purchase documents pursuant to this contract, it is not necessary for State departments operating under statewide contract purchasing authority to request the completion of State required certifications, a Bidder Declaration document, or perform additional CUF analysis. The State department should make a notation of this within their procurement file.

Exception: It is the responsibility of ordering departments to confirm CUF when valueadded services are acquired by an ordering department and performed by certified SB/DVBE subcontractors consistent with commitments identified in the table above.

ATTACHMENTS
Attachment A – Contract Pricing
Attachment B – Delivery Locations (Super Districts B, C , E, and F) Attachment C – Delivery Location Addition/Change Request Form Attachment D – Fuel Rate Information Request Form
Agenda Packet Page 193 of 293

STATE OF CALIFORNIA

DEPARTMENT OF GENERAL SERVICES

PROCUREMENT DIVISION
Contract (Mandatory) 1-23-91-02B
Contract User Instructions

Attachment E – State of California Bid Specifications:
• Gasoline, Unleaded Regular, Bid Specification Number 9130-6166A, dated 7/18/2022
• Diesel Fuel, Type 2-D, Bid Specification Number 9130-6166B, dated 7/18/2022 • Ethanol (E85), Bid Specification Number 9130-6166C, dated 7/18/2022 Agenda Packet Page 194 of 293

AGENDA BILL
Agenda Item No. 8.A.

Date: September 19, 2023
To: El Cerrito City Council
From: Traviss Crumpacker, Fire Prevention Officer; Chase Beckman, Fire Marshal, Fire Department
Subject: Fire Hazard Abatement

ACTION PROPOSED
1) Adopt a resolution declaring weeds, rubbish, litter, or other flammable material on certain real property identified in the resolution constitutes a public nuisance; and 2) Conduct a public hearing and upon conclusion, adopt a resolution overriding objections by property owners and ordering the City Manager or their designee to abate certain public nuisances pursuant to El Cerrito Municipal Code Chapter 16.26.

BACKGROUND
Following the Oakland/Berkeley Hills Fire in October 1991, El Cerrito needed a comprehensive citywide program to reduce hill area fire hazards in the City. The "fire storm" in the Oakland/Berkeley Hills was in fact an urban conflagration, fueled by vegetation among homes and large acreage properties that was driven by seasonally strong dry winds from the east. The fire destroyed over 3,000 dwellings. At the time of the Oakland/Berkeley Hills Fire, El Cerrito faced similar fire hazard conditions in its hill area. The City Council was determined to reduce those fire hazards by all reasonable means.

El Cerrito's comprehensive fire hazard reduction program focused upon reducing fire hazards in four areas: (1) on City property, (2) on property owned by other agencies (3) large landowners and (4) on residential property. The City began a comprehensive planning process to reduce fire hazards on City property, other agencies’ properties and large landholders. These property owners were approached about reducing fire hazards on their properties. Prior efforts at fire hazard reduction on private residential property relied on voluntary compliance by the owners. The City Council concluded that stronger measures were necessary to enforce the laws regarding abatement of fire hazards on residential private property.

The Fire Hazard Abatement Program is designed to reduce fire hazards on a large number of private properties during the spring and early summer months. A process of advance notice and hearings for property owners is coupled with a public education program involving the promulgation of standards for vegetation management in residents’ yards and vacant lots.

This program seeks to remove weeds, rubbish, litter or other flammable material from private properties where such flammable material endangers the public safety by creating a public nuisance and a fire hazard. Most property owners voluntarily abate Agenda Packet Page 195 of 293
Agenda Item No. 8.A.
these hazards without Fire Department involvement. However, we anticipate that a small number of owners are content to have the City do the work and place the costs on their tax bill. For over 20 years, the City’s annual Fire Hazard Abatement Program has been very successful in reducing fire hazards throughout the hill neighborhoods of El Cerrito. Indeed, this program has become a model program which other fire jurisdictions have borrowed from.

ANALYSIS
Beginning in May of this year, the Fire Department conducted Citywide fire hazard inspections of all properties. The inspections began on May 15, 2023 and have continued due to re-growth and citizen complaints. As a result of the on-going inspections, a list of properties containing public nuisances was generated, which continues to be amended as additional properties are identified. On August 1, 2023, the identified properties determined to be in violation of El Cerrito Municipal Code Chapter

16.26 were notified in writing of the hazards on their property and to abate those hazardous conditions. The El Cerrito Vegetation Management Standards Checklist was included with the notification (Attachments 4, 5, & 6).

Additionally, these property owners were informed in the letter from the Fire Marshal (Attachment 4) of the time, date, and location of the upcoming City Council meeting where their properties would be declared a public nuisance and abatement would be ordered. Property owners were directed to complete the necessary measures to bring their property into compliance prior to the second round of the re-inspection process which began in September and continued through the date of the September 19, 2023 meeting. Only those properties that were not voluntarily abated with the first notice are contained within the Master Abatement List, Exhibit A to the proposed Resolution (List of Properties.)
This public hearing is the next step in the process to eliminate hazards on private properties that were identified as a public nuisance and have not voluntarily abated said violations. In order to achieve full compliance, the City Council is asked to declare the properties to be a public nuisance and direct the City Manager or their designee to abate such public nuisance conditions. Actual City-ordered abatement of fire hazards occurs only after all efforts at providing notice, information, and a public hearing have failed to induce voluntary compliance by the property owner.

The Fire Hazard Abatement process, under the direction of the Fire Department, should proceed according to El Cerrito Municipal Code Chapter 16.26, which specifies the following:

The Fire Department determines that hazards must be abated. Pursuant to these code sections, "hazards" are defined as weeds, rubbish, litter, or other flammable materials which create a fire hazard or are otherwise noxious or dangerous and which exist on specific parcels of property within the City. The Fire Department shall post notice on each property or send notice by mail that the El Cerrito Fire Department has determined the existence of a public nuisance which must be abated and that a hearing will be held Agenda Packet Page 196 of 293
Agenda Item No. 8.A.
to consider any objections prior to the City Council declaring the properties to be a public nuisance and ordering the City Manager or their designee to perform abatement.

At the September 19, 2023 City Council meeting, the City Council shall first adopt a resolution Declaring that Weeds, Rubbish, Litter, or Other Flammable Material on Certain Real Property Constitutes a Public Nuisance (Attachment 1 and 2). At the same meeting, but after adoption of the first resolution, the City Council shall conduct a public hearing to hear and consider all objections to the declaration of public nuisances or the procedures proposed for abatement of the same. After the hearing, the Council shall adopt a resolution Overriding Objections by Property Owners and Ordering the City Manager or their Designee to Abate Certain Public Nuisances Pursuant to Chapter

16.26 (Attachment 3).

Subsequent to the September 19, 2023 hearing, a second and final notice shall be sent to each property owner prior to abatement (Attachment 7). This notice will order the immediate abatement of nuisance conditions. This notice will clearly state that if nuisance conditions are ignored, the City shall cause abatement and costs for removal will be assessed against the property as a lien and special assessment. It will also indicate that if the conditions are voluntarily abated, the property shall be removed from the process. If the nuisance is not abated between September 20, 2023 and October 15, 2023, prior to the arrival of the hazard abatement crew, the City of El Cerrito shall cause the weeds, rubbish, refuse, and other flammable material to be removed and shall keep an account of the cost of abatement for each parcel of land where such work is performed according to the City Council adopted Fire Department Master Fee Schedule.

At the November 7, 2023 City Council meeting the City Manager or their designee shall submit to the City Council for confirmation an itemized written report showing the cost of abatement work performed. A copy of this report shall be posted for at least ten (10) days prior to its submission to the City Council. Each property owner upon whose property abatement work was performed shall be sent written notice by mail of a hearing by the City Council to consider the cost of abatement work performed on their property. At the City Council Meeting on November 7, 2023, the City Council shall receive and consider the written staff report on abatement actions taken by the City and shall hear any objections from the property owners liable to be assessed for the abatement. The City Council may modify the staff report if deemed appropriate and then confirm the report by motion or resolution.

After City Council confirmation of the report, a certified copy of the report shall be filed with the Contra Costa County auditor who shall add the amount of the assessment to the next regular tax bill levied against the parcel.

STRATEGIC PLAN CONSIDERATIONS
This item is in alignment with Strategic Goal E: Ensure the Public's Health and Safety.

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Agenda Item No. 8.A.

ENVIRONMENTAL CONSIDERATIONS
The Fire Hazard Abatement Program is exempt from California Environmental Quality Act (CEQA) pursuant to Sections 15304 and 15308 of the CEQA Guidelines. Therefore, no further CEQA review is required.

FINANCIAL CONSIDERATIONS
The abatement program will be administered by Fire Department staff with minimum costs expended for printing and mailing. Abatement work will be completed by City maintenance staff or private contract labor as appropriate. Program costs will be recovered through the special assessment and lien process.

LEGAL CONSIDERATIONS
The City Attorney has reviewed and approved the process.

Reviewed by:

Karen Pinkos, City Manager
Attachments:

1. Resolution (Declaring Public Nuisance)

2. Exhibit A to Resolution (List of Properties)

3. Resolution (Overriding Objections)

4. First Letter from Fire Marshal

5. Abatement Inspection Form

6. Vegetation Management Standards Checklist

7. Second Letter from Fire Marshal
Agenda Packet Page 198 of 293
Agenda Item No. 8.A.

Attachment 1
RESOLUTION NO. 2023 - XX

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL CERRITO DECLARING THAT

WEEDS, RUBBISH, LITTER OR OTHER FLAMMABLE MATERIAL ON CERTAIN REAL

PROPERTY CONSTITUTES A PUBLIC NUISANCE
WHEREAS, El Cerrito Municipal Code Chapter 16.26 provides a method by which a local legislative body may abate on private property public nuisance conditions relating to weeds, rubbish, litter or other flammable material that creates a fire hazard, a menace to the public health or which is otherwise noxious or dangerous; and WHEREAS, the City of El Cerrito Fire Marshal has identified certain real property, by street name, lot and block number, on which the presence of weeds, rubbish, litter or other flammable material creates a fire hazard, a menace to the public health or which is otherwise noxious or dangerous as defined in Chapter 16.26 of the El Cerrito Municipal Code and therefore constitutes a public nuisance; and
WHEREAS, pursuant to El Cerrito Municipal Code Section 16.26.160 and Government Code Section 39560-39588, the City Council shall adopt this resolution declaring that certain real property within the City constitutes a public nuisance.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of El Cerrito that the properties identified on Exhibit A, attached hereto, are declared to be public nuisances pursuant to El Cerrito Municipal Code Section 16.26.160.

BE IT FURTHER RESOLVED that on this same date of September 19, 2023 at 6:00 P.M. in the City of El Cerrito, the City Council shall hold a hearing at which owners of the real property identified in Exhibit A hereto may object to the designation of their properties as public nuisances and object to the abatement actions proposed by the City.

BE IT FURTHER RESOLVED that this resolution shall become effective immediately upon passage and adoption.

I CERTIFY that at a regular meeting on September 19, 2023 the El Cerrito City Council passed this resolution by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

IN WITNESS of this action, I sign this document and affix the corporate seal of the City of El Cerrito on .
_________________________
Holly M. Charléty, City Clerk
APPROVED:
_________________________
Lisa Motoyama, Mayor
Agenda Packet Page 199 of 293
Agenda Item No. 8.A.

Attachment 2

EXHIBIT A
As of 9/7/23
City of El Cerrito Fire Department
List of Real Property Constituting Public Nuisances
APN Street Address
505-203-022-7 1220 King Dr.

Agenda Packet Page 200 of 293
AGENDA ITEM NO. 8.A.

ATTACHMENT 3
RESOLUTION NO. 2023 - XX

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL CERRITO OVERRIDING

OBJECTIONS BY PROPERTY OWNERS AND ORDERING THE CITY MANAGER OR

DESIGNEE TO ABATE CERTAIN PUBLIC NUISANCES PURSUANT TO CHAPTER

16.26 WHEREAS, El Cerrito Municipal Code Chapter 16.26 provides a method by which a local legislative body may abate on private property public nuisance conditions relating to weeds, rubbish, litter or other flammable material that creates a fire hazard, a menace to the public health or which is otherwise noxious or dangerous; and WHEREAS, the City of El Cerrito Fire Marshal has identified certain real property, by street name, lot and block number, on which the presence of weeds, rubbish, litter or other flammable material creates a fire hazard, a menace to the public health or which is otherwise noxious or dangerous as defined in Chapter 16.26 of the El Cerrito Municipal Code and therefore constitutes a public nuisance; and WHEREAS, on September 19, 2023, pursuant to El Cerrito Municipal Code Section 16.26.160 and Government Code Sections 39560-39588, the City Council adopted Resolution 2023-XX declaring that certain real property within the City constitutes a public nuisance; and
WHEREAS, El Cerrito Municipal Code Chapter 16.26 provides that notice shall be sent to owners of the real property declared a nuisance pursuant to Resolution 2023- XX providing those owners with the following: description of the nuisance; explanation of how the nuisance must be abated; explanation that if the nuisance is not abated; the City shall abate the public nuisance and the cost of abatement shall be assessed against the property as a special assessment; and informing the owners that the City Council shall hold a hearing at a certain date, time, and place at which the owners may present objections to the designation of their properties as public nuisances or to the proposed abatement of the nuisance; and
WHEREAS, during the month of August 2023, the City’s Fire Department sent written notice to those property owners describing the weeds, rubbish, refuse, or other flammable material that presented a fire hazard and public nuisance; explaining that the Fire Department had determined a public nuisance that must be removed; informing the owners that if they did not abate by September 5, 2023, the City Council would hold a hearing on September 19, 2023 at which the owners could present objections to the declaration of the nuisance or the proposed abatement measures and further explained the City could abate the nuisance and collect the costs as an assessment on the property; and
WHEREAS, on September 19, 2023, the City Council adopted Resolution 2023- XX confirming the nuisance declarations of the City Fire Department and declaring a public nuisance on certain real property pursuant to Chapter 16.26; and WHEREAS, El Cerrito Municipal Code Section 16.26.160 and Government Code Sections 39560-39588 provide that after adoption of a resolution declaring a public nuisance and notice to affected property owners of the Council's hearing of objections, the Council may overrule any objections and order the City Manager or their designee to abate the public nuisances.

Agenda Packet Page 201 of 293
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of El Cerrito that it overrides any objections by owners of that certain real property on which public nuisances were declared in Exhibit A to Resolution 2023 - __ (adopted on the same date herewith).

BE IT FURTHER RESOLVED that the City Manager and their designee is hereby ordered to abate the public nuisances by having the weeds, rubbish, refuse, dirt, or other fire hazard or noxious or dangerous materials removed.

BE IT FURTHER RESOLVED that pursuant to El Cerrito Municipal Code Section

16.26.160 and Government Code Section 39574, the City Manager or their designee shall keep an account of the cost of abatement for each parcel of land on which work is performed. The City Manager or their designee shall then prepare an itemized written report to be presented to the City Council so that, after the notice and hearing during the City Council meeting of November 7, 2023 these abatement costs can be confirmed as a special assessment against those parcels.

BE IT FURTHER RESOLVED that this resolution shall become effective immediately upon passage and adoption.

I CERTIFY that at a regular meeting on September 19, 2023 the El Cerrito City Council passed this resolution by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

IN WITNESS of this action, I sign this document and affix the corporate seal of the City of El Cerrito on ______________.
_________________________
Holly M. Charléty, City Clerk
APPROVED:
______________________
Lisa Motoyama, Mayor
Agenda Packet Page 202 of 293
Agenda Item No. 8.A.

Attachment 4

EL CERRITO-KENSINGTON FIRE DEPARTMENT
Fire Prevention Office
10900 San Pablo Avenue, El Cerrito, CA 94530
(510) 215-4457 FAX (510) 232-4917 [email protected] August 1, 2023
Parcel Number: XXXX
Property Address: XXXX
Property Owner: XXXX
Property Owner’s Address: XXXXX
Dear El Cerrito Property Owner:

With the continued drought conditions the last three years, the community is facing its peak fire danger earlier than normal. To reduce the fire danger on private property and provide greater community safety, the Fire Department has been inspecting properties and checking for fire hazards. Recently your property listed above was found that it does not comply with the Vegetation Management Guidelines set forth in the City of El Cerrito Vegetation Management Standards. You are being notified now so that you may, if you have not already done so, take steps to remove those fire hazard conditions found on your property.

Enclosed is a copy of the Fire Hazard Reduction Inspection form specifying those areas that are not in compliance as well as the Fire Hazard Reduction Guidelines and Fire Hazard Reductions Checklist that can assist you in bringing your property into compliance. More information on the Vegetation Management Standards and Guidelines may be found on the City’s website at: www.el-cerrito.org under Vegetation Management Standards. Additional information is also available at www.readyforwildfire.org or www.cafiresafecouncil.org as well as many others.

If you have recently completed the work to meet these standards, no further action is required. If not, your property is required to be brought into compliance no later than September 5, 2023. There is no need to contact Fire Department upon completion as we will be re-inspecting all properties. When the Fire Department has cleared your property, you will be removed from our non-compliant list.

On September 19, 2023 at 6:00PM the El Cerrito City Council will hold a public hearing to declare those properties still not in compliance as a public nuisance. Your property is at risk of being declared a public nuisance and subject to further abatement actions. In accordance with the Government Code, you may appear before the Board at this public hearing to dispute this declaration.

If you have not done so already, please take immediate action to remove those fire hazard conditions and we thank you for your cooperation helping us make El Cerrito a more fire safe community.

Sincerely,
Chase Beckman
Chase Beckman
Fire Chief / Fire Marshal
Agenda Packet Page 203 of 293

EL CERRITO FIRE DEPARTMENT

KENSINGTON FIRE PROTECTION DISTRICT
10900 San Pablo Avenue, El Cerrito, Ca. 94530 (510)215-4450 Fire Hazard Reduction Inspection
Owner/Tenant Site Address City State Zip Code
Legal Propety Owner Mailing Address City State Zip Code APN #
ZONE 1
Zero to 30 feet from buildings, structures, decks,etc. in all portions within El Cerrito and Kensington ___ 1. Remove all dead plants, grass and weeds.
___ 2. Remove dead or dying leaves and pine needles from your yard, roof and rain gutters. ___
___
___
___
___ 7. Remove or prune flammable plants and shrubs near windows. ___
___
___
ZONE 2
___ 1. Cut or mow weeds and grass to a maximum height of 6 inches. ___
___ 3. Vacant lots in Zone 2 shall be maintained to be 30 feet wide along the property line.

COMMENTS:

Inspected by Inspection # Date Time

8. Remove vegetation and items that could catch fire from around and under decks.

9. Create a minimum 6-foot separation between trees, shrubs or vegetation and combustible materials.

10. Vacant lots in Zone 1 shall be maintained to be 10 feet wide along the property line.

Thirty to 100 feet from buildings, structures, decks, etc. for all parcels within the Very High Fire Hazard Severity Zone. Zone 1 requirements shall be followed in addition to Zone 2 requirements.

2. All fire hazardous vegetation except for weeds and grass shall be cleared and maintained to a height no greater than 18 inches above the ground.

YOUR PROPERTY IS NOT IN COMPLIANCE WITH THE FIRE CODE.

YOU MUST COMPLETE THE FOLLOWING REQUIREMENTS:

6. Relocate wood piles to Zone 2 if applicable.

3. Trees shall be maintained so that no portion is closer than 10 feet from any chimney opening.

4. Trees, shrubs, bushes or other vegetation adjacent to or overhanging any structure shall be maintained free of dead limbs and other combustible matter.

5. On mature trees, limbs should be removed up to 10' above the ground. Smaller trees should be limbed to 1/3 of their height up to 6' above the ground, but in no case less than 18" from the ground.

AGENDA ITEM NO. 8.A.

ATTACHMENT 5
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City of El Cerrito Fire Hazard Reduction Guidelines
Zone 1
Zone 1 extends 30 feet from buildings, structures, decks, etc.in all portions within the City of El Cerrito including the designated Very High Fire Hazard Severity (VHFHS) Zones. Vacant lots in Zone 1 shall be maintained to be 10 feet wide along the property line. • Remove all dead plants, grass and weeds (vegetation). • Remove dead or dry leaves and pine needles from your yard, roof and rain gutters. • Trees shall be maintained so that no portion is closer than 10 feet from any chimney opening. • Trees, shrubs, bushes or other vegetation adjacent to or overhanging any structure shall be maintained free of dead limbs and other combustible matter such as vines and loose papery bark. • On mature trees, limbs should be removed up to 10’ above the ground. Smaller trees should be limbed to 1/3rd of their height up to 6’ above the ground, but in no case less than 18 inches from the ground. • Relocate wood piles to Zone 2 if applicable.
• Remove or prune flammable plants and shrubs near windows. • Remove vegetation and items that could catch fire from around and under decks. • Create a minimum 6-foot separation between trees, shrubs or vegetation and combustible materials.

Zone 2
Zone 2 extends from 30 feet to 100 feet out from buildings, structures, decks, etc. in only those areas within the City of El Cerrito designated as the Very High Fire Hazard Severity (VHFHS) Zones. Vacant lots in Zone 2 shall be maintained to be 30 feet wide along the property line. NOTE: All Zone 1 requirements shall be followed in addition to the following Zone 2 requirements:
• Cut or mow weeds and grass shall be cleared to a maximum height of 6 inches. • All fire hazardous vegetation except for weeds and grass shall be cleared and maintained to a height no greater than 18 inches above the ground.

AGENDA ITEM NO. 8.A.

ATTACHMENT 6
Agenda Packet Page 205 of 293
Fire Hazard Reduction Checklist
Zone 1 Requirements
Definition: Zone 1 extends 30 feet from buildings, structures, decks, etc.in all portions within the City of El Cerrito including the designated Very High Fire Hazard Severity (VHFHS) Zones
Remove all dead plants, grass and weeds within 30 feet of buildings, structures, decks, etc.

Remove dead or dry leaves and pine needles from your yard, roof and rain gutters Trees shall be maintained so that no portion is closer than 10 feet from any chimney opening Trees, shrubs, bushes or other vegetation adjacent to or overhanging any structure shall be maintained free of dead limbs and other combustible matter such as vines and loose papery bark On mature trees, limbs should be removed up to 10’ above the ground. Smaller trees should be limbed to 1/3rd of their height up to 6’ above the ground, but in no case less than 18” from the ground Relocate wood piles to Zone 2 if applicable
Remove or prune flammable plants and shrubs near windows Remove vegetation and items that could catch fire from around and under decks Create a minimum 6-foot separation between trees, shrubs or vegetation and combustible materials
Vacant lots in Zone 1 shall be maintained to be 10 feet wide along the property line Zone 2 Requirements
Definition: Zone 2 extends from 30 feet to 100 feet out from buildings, structures, decks, etc. in only those areas within the City of El Cerrito designated as the Very High Fire Hazard Severity (VHFHS) Zones. NOTE: All Zone 1 requirements shall be followed in addition to the following Zone 2 requirements
Cut or mow weeds and grass shall be cleared to a maximum height of 6 inches All fire hazardous vegetation except for weeds and grass shall be cleared and maintained to a height no greater than 18 inches above the ground
Vacant lots in Zone 2 shall be maintained to be 30 feet wide along the property line To find out if your property is located within the Very High Fire Hazard Severity Zone, go to : https://egis.fire.ca.gov/FHSZ/ On the upper left hand side, click on the bottom icon for Address Search.

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Agenda Item No. 8.A.

Attachment 7

CITY OF EL CERRITO
10900 San Pablo Avenue  El Cerrito  CA  94530
(510) 215-4457  FAX (510) 232-4917  [email protected] September 20, 2023
Parcel Number: XXX
Property Address:

Property Owner: XXX
Property Owner’s Address:

NOTICE TO DESTROY WEEDS AND REMOVE

RUBBISH, REFUSE AND OTHER FLAMMABLE MATERIAL
On September 19, 2023 the El Cerrito City Council declared that your property in the City of El Cerrito, designated above by address and parcel number, constitutes a public nuisance because of the presence of weeds, rubbish, litter or other flammable material which creates a fire hazard, a menace to the public health, or is otherwise noxious or dangerous.

A previous notice was sent to you informing you of the September 19, 2023 hearing and further informing you of your obligation to remove the weeds, rubbish, refuse and other flammable material from your property. If you do not immediately abate these nuisance conditions, the City will do so and the costs for removal of the weeds, rubbish, refuse and other flammable material will be assessed against your property as a lien and special assessment. These removal costs shall then be collected in the time and in the manner of ordinary municipal taxes.

You will not receive any further notices from the City prior to this removal. The City shall perform this removal either through its own staff or through private contract sometime between the dates of October 15, 2023 to October 25, 2023. It is impossible to predict what it will cost the City to remove these nuisance conditions from your property. The costs depend on the severity of those conditions. In past years these abatement costs have sometimes exceeded $8,000 per parcel for those parcels with severe nuisance conditions The City Council will conduct a public hearing on November 7, 2023 to confirm the cost of the abatement work performed on your property. The meeting will be held both via teleconference and in the El Cerrito City Council Chambers at 10890 San Pablo Avenue in El Cerrito at 6:00 p.m. Please refer to the agenda for meeting information at www.elcerrito.org/CouncilMeetingMaterials. During this public hearing you will be given the opportunity to voice objections regarding the report and the assessment of the abatement costs for your property. At this hearing you will also be given the opportunity to object, protest and/or present evidence to support your arguments.

If you have any questions, contact the El Cerrito Fire Department at 10900 San Pablo Avenue.

The phone number is (510) 215-4457.

Chase Beckman
Chase Beckman
Fire Marshal
Agenda Packet Page 207 of 293

AGENDA BILL
Agenda Item No. 8.B.

Date: September 19, 2023
To: El Cerrito City Council
From: Chase Beckman, Fire Marshal, Fire Department; Traviss Crumpacker, Fire Prevention Officer, Fire Department
Subject: Cost Hearing Regarding Fire Hazard Abatement of a Public Nuisance for Properties Identified and pursuant to El Cerrito Municipal Code Chapter

16.26 ACTION PROPOSED
Conduct a public hearing and upon conclusion adopt a resolution confirming the cost of abatement of public nuisance conditions resulting from the presence of weeds, rubbish, litter or other flammable material on private properties designated in Exhibit A to the resolution as authorized by El Cerrito Municipal Code Chapter 16.26.

BACKGROUND
The Fire Department is continuing its fire hazard abatement program. The purpose of this program is to remove weeds, dry grass, stubble, brush, rubbish, litter and other flammable material from private properties where such flammable material endangers public safety by creating a public nuisance and a fire hazard.

In the first round for 2023, notices were initially sent to 74 parcel owners notifying them that hazards existed on their parcels. With support and help from the Fire Department, the vast majority of notified property owners abated the hazards on their parcels.

However, six of those properties were not abated by the property owners by the deadline of July 9, 2023 and were further submitted to the City to be declared public nuisances. The property owners identified in the July 18, 2023 Exhibit A as amended were notified that if they did not abate the hazardous conditions on their property, the City would do so. They were given the opportunity at a public hearing to object to the City’s plan to abate these conditions. On July 19, 2023, the City then sent the six property owners identified in Exhibit A a second notice, informing them that the City would perform abatement through its own staff or through a private contract. The majority of the six property owners then contacted the Fire Department and either performed the required abatement or entered a work agreement to perform the abatement over a given period of time.

One of those property owners did not voluntarily abate their public nuisance and fire hazard conditions nor contact the Fire Department to agree on a work plan to reduce the hazards on their properties. For this property, the City has followed a statutory procedure to remove hazardous conditions. This procedure is specified in the July 18, 2023 Agenda Bill and Resolutions No. 2023-55 and 2023-56.

On August 18, 2023, a notice was posted in plain view on the remaining property stating Agenda Packet Page 208 of 293
Agenda Item No. 8.B.
that the City would begin abatement on the property between August 18 and September 5, 2023.

On September 4, 2023, the City performed abatement of the remaining property through a private contractor. This property is presented in Exhibit A.

ANALYSIS
The fire hazard abatement procedure provides ample due process for the affected property owner, well beyond the minimum procedure statutorily required. The most important part of the procedure is that the property owner listed in Exhibit A was given the opportunity to contest whether their property constituted a public nuisance and a fire hazard at a public hearing before the City Council. The property owner did not contest the designation, nor did the property owners voluntarily abate the nuisance conditions.

The City Council therefore directed City staff to abate said conditions.

This matter appears before the City Council for the sole purpose of confirming the abatement costs already incurred by the City for the property identified in Exhibit A. At this hearing, the City Council should review the reasonableness of the costs of abatement as specified, and then determine the abatement costs to be assessed. The proposed resolution provides for confirmation of the report of abatement costs, and attached Exhibit B specifies the administrative costs associated with the abatement of the property. Once confirmed by the City Council, the costs of abating the nuisance will be forwarded to the County Auditor no later than August 10, 2024 for assessment of the individual property and a lien will be recorded with the County Recorder.

RECOMMENDATION
Staff recommends that the City Council adopt the proposed resolution as presented at the conclusion of the hearing. Alternatively, the City Council may adopt a resolution with amended costs; or the Council may choose not to adopt the proposed resolution, thereby not confirming the report of the cost of abatement, not forwarding the costs of abatement to the County for collection, and causing the City of El Cerrito to absorb the full cost of abating the hazardous conditions of the subject properties.

STRATEGIC PLAN CONSIDERATIONS
This section is not applicable to this agenda item.

ENVIRONMENTAL CONSIDERATIONS
This section is not applicable to this agenda item.

FINANCIAL CONSIDERATIONS
The abatement work has been completed by contract labor and the City is obligated to pay contractors a total of $4,000.00 for their work. Administrative costs, totaling $458.50, have been added, bringing the total abatement cost to $4,458.50. Total administrative costs may include: (1) Fire Department initial inspection and notice, (2) re-inspection, (3) office work and attendance at City Council hearings, (4) additional Agenda Packet Page 209 of 293
Agenda Item No. 8.B.
notices, (5) vendor bid inspection, (6) posting of property, (7) writing of inspection/abatement warrants, (8) court appearances for signing and filing of warrants, (9) vendor observation/inspection, and (10) submittal of records/liens to the County. In order for the City to fully recover the direct and indirect costs of $4,458.50 already incurred for the abatement work performed, the City Council should confirm the staff report on the costs of abatement at this time so that these costs can be forwarded to the County for collection from the property owner.

LEGAL CONSIDERATIONS
The City Attorney has reviewed and approved the process.

Reviewed by:

Karen Pinkos, City Manager
Attachments:

1. Resolution

2. Exhibit A to Resolution

3. Exhibit B to Resolution
Agenda Packet Page 210 of 293
RESOLUTION NO. 2023–XX

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL CERRITO CONFIRMING

THE REPORT OF THE COSTS OF ABATEMENT OF PUBLIC NUISANCE

CONDITIONS RESULTING FROM THE PRESENCE OF WEEDS, RUBBISH, LITTER

OR OTHER FLAMMABLE MATERIAL ON THE PRIVATE PROPERTY DESIGNATED

HEREIN UNDER THE AUTHORITY CONTAINED IN EL CERRITO MUNICIPAL CODE SECTION 16.26
WHEREAS, El Cerrito Municipal Code Section 16.26, et seq. provides a method by which a local legislative body may abate public nuisance conditions on private property relating to weeds, rubbish, litter or other flammable material which creates a fire hazard, a menace to the public health or which is otherwise noxious or dangerous; and
WHEREAS, pursuant to El Cerrito Municipal Code Section 16.26 the El Cerrito City Council declared, through Resolution No. 2023-55, that the properties identified herein in Exhibit A constitute a public nuisance because the presence of weeds, rubbish, litter or other flammable material on the properties created a fire hazard, a menace to the public health, or were otherwise noxious or dangerous; and WHEREAS, through Resolution No. 2023-56 the City Council directed, under the further authority of El Cerrito Municipal Code Section 16.26, that notice be provided to the owners of the properties identified in Exhibit A informing the owners that if they did not abate the nuisance conditions, that these conditions would be abated by the City, and that upon confirmation, the abatement costs would constitute a lien upon the properties until paid; and
WHEREAS, through Resolution No. 2023-56 the City Council further directed that a public hearing be scheduled at which time the owners of the properties identified in Exhibit A could present objections to the designation of their property as a public nuisance and objections to the abatement of these public nuisance conditions by the City; and
WHEREAS, notice designating the properties identified in Exhibit A a public nuisance and informing the owners of the properties of the right to object to such designation and proposed abatement by the City was provided to the owners of the properties as required by Government Code Sections 39560 through 39588; and WHEREAS, the owners of the properties identified in Exhibit A did not appear at the July 18, 2023 public hearing to contest the public nuisance designation or to object to the abatement of the public nuisance conditions by the City; and WHEREAS, at the conclusion of the July 18, 2023 public hearing, the City Council, by Resolution No. 2023-56 and Exhibit A as amended, directed the City Manager or designee to abate those public nuisance conditions as provided for by El Cerrito Municipal Code Section 16.26 and Government Code Section 39560 through 39588; and
Agenda Packet Page 211 of 293
WHEREAS, the City Council further directed that the City Manager or designee to keep an account of the cost of abatement for each property on which work was performed and that a report be prepared and presented to the City Council so that, after notice and hearing, these abatement costs could be confirmed as a special assessment against the property; and
WHEREAS, after the adoption of Resolution No. 2023-56 a second notice was mailed to the owners of the properties identified in that resolution again informing the property owners that if they did not abate the public nuisance conditions on the properties, that the City would abate these nuisance conditions and assess the abatement costs against the properties; and
WHEREAS, as required by El Cerrito Municipal Code Section 16.26 the El Cerrito City Council conducted a hearing on September 19, 2023 at which an opportunity was given to voice objections regarding the report and the assessment of the abatement costs for the property identified in Exhibit A of this Resolution. Notice of the hearing was provided to the owner of the property; and WHEREAS, at the September 19, 2023 hearing, the property owner was given the opportunity to object and protest the report and the abatement costs assessed. The property owner was also given the opportunity to present evidence in support of their argument; and
WHEREAS, such testimony provided at the public hearing included a description of the public nuisance conditions which existed at the property prior to the abatement, a description of the services required to abate those conditions, the cost to the City in abating those conditions and such other matters deemed relevant by the City Council; and
WHEREAS, the City Council does hereby conclude that the abatement costs as contained in Exhibit B, as such costs may have been modified by the City Council after a review of the evidence, are fair and reasonable. This determination is based on the evidence submitted by the property owners, the evidence submitted by City staff, the evidence concerning the nuisance conditions which existed at the property prior to abatement, the evidence concerning the scope of services required to abate those conditions, and such other matters deemed relevant by the City Council.

NOW THEREFORE, BE IT RESOLVED that the City Council of the City of El Cerrito does hereby confirm the report of the costs of abatement as contained in Exhibit B of this Resolution.

BE IT FURTHER RESOLVED that the costs of abatement shall be levied as a special assessment against the property and that these costs shall be certified to the Auditor of Contra Costa County so that the costs of abatement shall be collected at the same time and in the same manner as ordinary municipal taxes.

Agenda Packet Page 212 of 293
BE IT FURTHER RESOLVED that a certified copy of this Resolution confirming the abatement costs for the property identified in Exhibit A of this Resolution shall be filed with the County Auditor on or before August 10, 2024.

BE IT FURTHER RESOLVED that the City Manager or designee shall take such action as may be necessary to record the abatement costs for the property identified in Exhibit A of this Resolution with the County Recorder as a lien against the properties as provided for in El Cerrito Municipal Code Section 16.26.

I CERTIFY that at a regular meeting on September 19, 2023 the City Council of the City of El Cerrito passed this resolution by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

IN WITNESS of this action, I sign this document and affix the corporate seal of the City of El Cerrito on .
_________________________
Holly M. Charléty, City Clerk
APPROVED:
_________________________
Lisa Motoyama, Mayor
Agenda Packet Page 213 of 293

EXHIBIT A
El Cerrito Fire Protection District
List of Real Property Abated
APN Street Address_______________
505-130-015-9 1550 Regency Court
Agenda Packet Page 214 of 293
Agenda Packet Page 215 of 293
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Agenda Packet Page 217 of 293
Agenda Packet Page 218 of 293

AGENDA BILL
Agenda Item No. 9.A.

Date: September 19, 2023
To: El Cerrito City Council
From: Crystal Reams, Finance Director/City Treasurer, Finance Department; Karen Pinkos, City Manager, City Management
Subject: Establishment of the PARS Post-Employment Benefits Trust Program

ACTION PROPOSED
Adopt a Resolution authorizing participation in the PARS Post-Employment Benefits Trust Program to be administered by Public Agency Retirement Services (PARS) and U.S. Bank, appointing the City Manager as the City’s Plan Administrator, authorizing the City Manager to execute the documents to implement the Program, and appropriating from fund balance and authorizing the deposit of $1,000,000 as the initial contribution to the City's trust.

BACKGROUND
About PARS and the Post-Employment Benefits Trust Program In 2012, the Government Accounting Standards Board (“GASB”) issued Statement No. 68, Accounting and Financial Reporting for Pensions. GASB 68 requires that governmental employers that sponsor Defined Benefit plans (i.e., CalPERS) must recognize a Net Pension Liability on their balance sheet, which is the difference between the City’s total pension liability (actuarial accrued liability) and actual plan assets. GASB 68 (which replaces the requirements of GASB 27) became effective for fiscal years starting after June 15, 2014.

In 2015, GASB issued Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions. GASB 75 requires the City to report costs and obligations for post-employment healthcare and other post-employment benefits (“OPEB”) much like the current accounting requirement to report pension obligations.

Similar to GASB 68, the City must also report its net OPEB liability (difference between the total OPEB liability and assets accumulated in an irrevocable trust) on its Financial Statements. GASB 75 (which replaces the requirements of GASB 45) became effective for fiscal years beginning after June 15, 2017.

In an effort to help public agencies address and manage their GASB 68 and 75 liabilities, PARS has sought and received approval from the IRS in the form of a Private Letter Ruling on its Post-Employment Benefits Trust Program, also known as a Section 115 Trust (the “Trust”). PARS has assembled leading professionals to provide the City with the necessary services required under one program to pre-fund pension liabilities.

This would provide the City with an alternative to CalPERS that will allow for greater local control over assets, investment by a professional fund management team selected and monitored by the City, with contributions and distributions from the Trust determined at the discretion of the City.

Agenda Packet Page 219 of 293
Agenda Item No. 9.A.

The program has been established as a multiple employer trust so that public agencies regardless of size can join the program to receive the necessary economies of scale to keep administrative fees low and avoid any setup costs. To properly offset liabilities, funds must be set aside in an exclusive benefit, irrevocable trust that cannot be accessed by creditors in order to be accounted for as assets to reduce the liabilities on the City’s financial statements. The Trust permits the City, under federal and state law, to invest in a more diversified array of investments to maximize investment returns in the long term and reduce the City’s liabilities. To date, more than 500 public agencies have adopted programs through PARS.

PARS has partnered with U.S. Bank to serve as trustee and its sub-adviser HighMark Capital Management, Inc., to provide investment management services for the program.

ANALYSIS
Pension Liability
The City of El Cerrito, like most cities in California, has an unfunded accrued liability (“UAL”) associated with its CalPERS pension plan. A UAL occurs when the current pension plan assets are not projected to be sufficient to pay total pension costs in future years. The City’s UAL has fluctuated in the past couple of years, mainly due to CalPERS’ annual investment returns. As of June 30, 2021, the City's UAL was $57.8 million, which was a 22.4% decrease from the City’s UAL of $74.5 million at the end of FY 2019-20. This was due to a very strong investment return of 21.3% in FY 2020-21.

However, CalPERS then reported an investment return of -7.5% in FY 2021-22 (revised from preliminary returns of -6.1%), which increased the City's UAL to $85.0 million. This is shown in the City’s latest CalPERS Actuarial Valuation reports, which were recently made available to the City. CalPERS charges the City a 6.8% interest rate on the UAL and requires a repayment schedule that escalates over the next decade.

The City’s annual UAL payment increased 96% from $3.2 million in FY 2017-18 to $6.2 million in FY 2022-23. The City’s UAL payment in FY 2023-24 ($6.1 million) is slightly lower than last fiscal year, due to the 21.3% investment returns, but then the City’s UAL payments are projected to escalate and reach a peak annual payment of $9.7 million in 2031. This is illustrated in the chart below:

Agenda Packet Page 220 of 293
Agenda Item No. 9.A.

Note that while the City has a pension liability with CalPERS, the City does not have an OPEB liability.

Decision to Pursue the Trust
The City has been interested for some time in setting up the Trust as a strategy to control its pension costs. On June 15, 2021, the City Council passed a motion to direct staff to establish the Trust for pension obligations. Since that time, City staff has conducted research and consulted with its financial advisor, NHA Advisors, to help guide the process of establishing the Trust. Progress was temporarily stalled due to severe staffing issues in the Finance Department; however, in the past few months City staff has worked with the City’s Financial Advisory Board to consider pension cost funding as one of the priorities for allocation of any year-end General Fund surplus.

At the August 15, 2023, City Council meeting, the City Council reviewed the allocation of the City’s General Fund reserve balance and directed staff to pursue working with PARS to establish and fund the Trust. The City Council approved by motion a deposit of $1,000,000 from fund balance as the initial deposit into the trust.

Expected Benefits Offered by the PARS Trust
Setting aside funds in the Trust should, over time, allow the City to earn more on its reserves than it otherwise would if those funds were left in the General Fund (which is restricted in investment options due to CA Government Code Section 53601). Other benefits include:
• Ability to “smooth out” higher UAL payments in the future by withdrawing funds from the Trust to supplement payments from the General Fund. • Investment diversification from CalPERS (CalPERS manages $158 million of the City’s pension assets, as of the 6/30/2022 CalPERS actuarial valuation).

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Agenda Item No. 9.A.
• Investments can be tailored to the City’s unique demographics. • Oversight and control of fund management selection, monitoring of performance and ability to replace fund management based on performance criteria. • Increased budgetary flexibility (i.e., Trust assets can be accessed any time as long as the assets are used to fund the City’s pension obligations and defray reasonable expenses associated therewith).
• Potential for positive rating agency and investor consideration.

Proposed Funding Plan
On August 15, 2023, the City Council reviewed the allocation of the City’s General Fund reserve balance and approved a funding policy proposing a $1,000,000 initial contribution to the Trust. Any additional future deposits to the Trust will be determined at a later date.

Fees
There is no fee to set up the Trust with PARS, but there is an annual Trust fee based on the amount of assets the City has in the Trust. Based on a $1,000,000 initial deposit into the Trust proposed by the City’s funding policy, the total annual fee is $6,000 (0.60% of $1,000,000), which is composed of $2,500 (0.25% of $1,000,000) for Trust administration services and $3,500 (0.35% of $1,000,000) for trustee/investment management services. Annual fees are paid from the Trust assets. A complete list of fees based on asset amount is as follows:
• Trust Administration Fees:
o 0.25% for assets $0-10 million
o 0.20% for assets $10-15 million
o 0.15% for assets $15-50 million
o 0.10% for assets over $50 million
• Trustee/Investment Management Fees:
o 0.35% for assets under $5 million
o 0.25% for assets $5-10 million
o 0.20% for assets $10-15 million
o 0.15% for assets $15-50 million
o 0.10% for assets over $50 million
Next Steps
If the resolution is approved as presented, the City Council adopts the PARS Public Agencies Post-Employment Benefits Trust and authorizes the City Manager to execute the administrative services agreement with PARS and any other legal and administrative documents required to set up the Trust. The resolution also appropriates from fund balance and authorizes the deposit of $1,000,000 as the initial contribution to the City;s Trust. The City Manager will work with PARS, U.S. Bank, and Highmark Capital Management to complete the necessary documents and have the $1,000,000 initial deposit transferred to the Trust and invested in the desired portfolio. NHA Agenda Packet Page 222 of 293
Agenda Item No. 9.A.

Advisors will remain available to provide advice to City staff during these next steps.

STRATEGIC PLAN CONSIDERATIONS
This item is consistent with Goal A: Deliver exemplary government services and Goal B:

Achieve long-term financial sustainability.

ENVIRONMENTAL CONSIDERATIONS
This section is not applicable to this agenda item.

FINANCIAL CONSIDERATIONS
There is no fee to set up the Trust with PARS, but there is an annual Trust fee based on the amount of assets the City has in the Trust. Based on a $1,000,000 initial deposit into the Trust proposed by the City’s funding policy, the total annual fee is $6,000 (0.60% of $1,000,000), which is composed of $2,500 (0.25% of $1,000,000) for Trust administration services and $3,500 (0.35% of $1,000,000) for trustee/investment management services. Annual fees are paid from the Trust assets.

LEGAL CONSIDERATIONS
The City Attorney has reviewed the proposed action and found that legal considerations have been addressed. The proposed agreement is in draft form; the final agreement will be in substantially the form attached subject to review by the City Attorney.

Reviewed by:

Karen Pinkos, City Manager
Attachments:

1. Resolution

2. Draft Agreement for Administrative Services
Agenda Packet Page 223 of 293
RESOLUTION NO. 2023-

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL CERRITO APPROVING

THE ADOPTION OF THE PUBLIC AGENCIES POST-EMPLOYMENT BENEFITS

TRUST ADMINISTERED BY PUBLIC AGENCY RETIREMENT SERVICES (PARS) WHEREAS, PARS has made available the PARS Public Agencies PostEmployment Benefits Trust (the “Program”) for the purpose of pre-funding pension obligations and/or OPEB obligations; and
WHEREAS, the City of El Cerrito (“City”) is eligible to participate in the Program, a tax-exempt trust performing an essential governmental function within the meaning of Section 115 of the Internal Revenue Code, as amended, and the Regulations issued there under, and is a tax-exempt trust under the relevant statutory provisions of the State of California; and
WHEREAS, the City’s adoption and operation of the Program has no effect on any current or former employee’s entitlement to post-employment benefits; and WHEREAS, the terms and conditions of post-employment benefit entitlement, if any, are governed by contracts separate from and independent of the Program; and WHEREAS, the City’s funding of the Program does not, and is not intended to, create any new vested right to any benefit nor strengthen any existing vested right; and WHEREAS, the City reserves the right to make contributions, if any, to the Program.

NOW THEREFORE, BE IT RESOLVED THAT:

1. The City Council hereby adopts the PARS Public Agencies Post-Employment Benefits Trust, effective September 19, 2023; and

2. The City Council hereby appoints the City Manager, or her successor or designee, as the City’s Plan Administrator for the Program; and

3. The City’s Plan Administrator is hereby authorized to execute the PARS legal and administrative documents on behalf of the City and to take whatever additional actions are necessary to maintain the City’s participation in the Program and to maintain compliance of any relevant regulation issued or as may be issued; therefore, authorizing her to take whatever additional actions are required to administer the City’s Program.

4. The City Council appropriates from fund balance and authorizes the deposit of $1,000,000 as the initial contribution to the City's Trust Agenda Packet Page 224 of 293
I CERTIFY that at a regular meeting on September 19, 2023 the City Council of the City of El Cerrito passed this Resolution by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

IN WITNESS of this action, I sign this document and affix the corporate seal of the City of El Cerrito on .
________________________
Holly M. Charléty, City Clerk
APPROVED:
________________________
Lisa Motoyama, Mayor
Agenda Packet Page 225 of 293

AGREEMENT FOR ADMINISTRATIVE SERVICES
This agreement (“Agreement”) is made this _____ day of _____________, 2023, between Phase II Systems, a corporation organized and existing under the laws of the State of California, doing business as Public Agency Retirement Services and PARS (hereinafter “PARS”) and the [Agency Name] (“Agency”).

WHEREAS, the Agency has adopted the PARS Public Agencies Post-Employment Benefits Trust for the purpose of pre-funding pension obligations and/or Other Post-Employment Benefits (“OPEB”) obligations (“Plan”) and is desirous of retaining PARS as Trust Administrator to the Trust, to provide administrative services.

NOW THEREFORE, the parties agree:

1. Services. PARS will provide the services pertaining to the Plan as described in the exhibit attached hereto as “Exhibit 1A” (“Services”) in a timely manner, subject to the further provisions of this Agreement.

2. Fees for Services. PARS will be compensated for performance of the Services as described in the exhibit attached hereto as “Exhibit 1B”.

3. Payment Terms. Payment for the Services will be remitted directly from Plan assets unless the Agency chooses to make payment directly to PARS. In the event that the Agency chooses to make payment directly to PARS, it shall be the responsibility of the Agency to remit payment directly to PARS based upon an invoice prepared by PARS and delivered to the Agency. If payment is not received by PARS within thirty (30) days of the invoice delivery date, the balance due shall bear interest at the rate of 1.5% per month. If payment is not received from the Agency within sixty (60) days of the invoice delivery date, payment plus accrued interest will be remitted directly from Plan assets, unless PARS has previously received written communication disputing the subject invoice that is signed by a duly authorized representative of the Agency.

4. Fees for Services Beyond Scope. Fees for services beyond those specified in this Agreement will be billed to the Agency at the rates indicated in the PARS’ standard fee schedule in effect at the time the services are provided and shall be payable as described in Section 3 of this Agreement. Before any such services are performed, PARS will provide the Agency with a detailed description of the services, terms, and applicable rates for such services. Such services, terms, and applicable rates shall be agreed upon in writing and executed by both parties.

5. Information Furnished to PARS. PARS will provide the Services contingent upon the Agency providing PARS the information specified in the exhibit attached hereto as “Exhibit 1C” (“Data”). It shall be the responsibility of the Agency to certify the accuracy, content, and completeness of the Data so that PARS may rely on such information without further audit. It shall further be the responsibility of the Agency to deliver the Data to PARS in such a manner that allows for a reasonable amount of time for the Services to be performed. Unless specified in Exhibit 1A, PARS shall be under no duty to question Data received from the Agency, to compute contributions made to the Agenda Packet Page 226 of 293

Plan, to determine or inquire whether contributions are adequate to meet and discharge liabilities under the Plan, or to determine or inquire whether contributions made to the Plan are in compliance with the Plan or applicable law. In addition, PARS shall not be liable for nonperformance of Services to the extent such nonperformance is caused by or results from erroneous and/or late delivery of Data from the Agency. In the event that the Agency fails to provide Data in a complete, accurate and timely manner and pursuant to the specifications in Exhibit 1C, PARS reserves the right, notwithstanding the further provisions of this Agreement, to terminate this Agreement upon no less than ninety (90) days written notice to the Agency.

6. Records. Throughout the duration of this Agreement, and for a period of five (5) years after termination of this Agreement, PARS shall provide duly authorized representatives of Agency access to all records and material relating to calculation of PARS’ fees under this Agreement. Such access shall include the right to inspect, audit and reproduce such records and material and to verify reports furnished in compliance with the provisions of this Agreement. All information so obtained shall be accorded confidential treatment as provided under applicable law.

7. Confidentiality. Without the Agency’s consent, PARS shall not disclose any information relating to the Plan except to duly authorized officials of the Agency, subject to applicable law, and to parties retained by PARS to perform specific services within this Agreement. The Agency shall not disclose any information relating to the Plan to individuals not employed by the Agency without the prior written consent of PARS, except as such disclosures may be required by applicable law.

8. Independent Contractor. PARS is and at all times hereunder shall be an independent contractor. As such, neither the Agency nor any of its officers, employees or agents shall have the power to control the conduct of PARS, its officers, employees, or agents, except as specifically set forth and provided for herein. PARS shall pay all wages, salaries, and other amounts due its employees in connection with this Agreement and shall be responsible for all reports and obligations respecting them, such as social security, income tax withholding, unemployment compensation, workers’ compensation, and similar matters.

9. Indemnification. PARS and Agency hereby indemnify each other and hold the other harmless, including their respective officers, directors, and employees, from any claim, loss, demand, liability, or expense, including reasonable attorneys’ fees and costs, incurred by the other as a consequence of, to the extent, PARS’ or Agency’s, as the case may be, negligent acts, errors or omissions with respect to the performance of their respective duties hereunder.

10. Compliance with Applicable Law. The Agency shall observe and comply with federal, state, and local laws in effect when this Agreement is executed, or which may come into effect during the term of this Agreement, regarding the administration of the Plan.

PARS shall observe and comply with federal, state, and local laws in effect when this Agreement is executed, or which may come into effect during the term of this Agreement, regarding Plan administrative services provided under this Agreement.

Agenda Packet Page 227 of 293

11. Applicable Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California. In the event any party institutes legal proceedings to enforce or interpret this Agreement, venue and jurisdiction shall be in any state court of competent jurisdiction.

12. Force Majeure. When a party’s nonperformance hereunder was beyond the control and not due to the fault of the party not performing, a party shall be excused from performing its obligations under this Agreement during the time and to the extent that its performance is prevented by such cause. Such cause shall include, but not be limited to:
any incidence of fire, flood, acts of God or unanticipated communicable disease, acts of terrorism or war commandeering of material, products, plants or facilities by the federal, state or local government, a material act or omission by the other party or any law, ordinance, rule, guidance or recommendation by the federal, state or local government, or any agency thereof, which becomes effective after the date of this Agreement that delays or renders impractical either party’s performance under the Agreement.

13. Ownership of Reports and Documents. The originals of all letters, documents, reports, and data produced for the purposes of this Agreement shall be delivered to and become the property of the Agency. Copies may be made for PARS but shall not be furnished to others without written authorization from Agency.

14. Designees. The Plan Administrator of the Agency, or their designee, shall have the authority to act for and exercise any of the rights of the Agency as set forth in this Agreement, subsequent to and in accordance with the written authority granted by the Governing Body of the Agency, a copy of which writing shall be delivered to PARS.

Any officer of PARS, or his or her designees, shall have the authority to act for and exercise any of the rights of PARS as set forth in this Agreement.

15. Notices. All notices hereunder and communications regarding the interpretation of the terms of this Agreement, or changes thereto, shall be effected by delivery of the notices in person or by depositing the notices in the U.S. mail, registered or certified mail, return receipt requested, postage prepaid and addressed as follows:
(A) To PARS: PARS; 4350 Von Karman Avenue, Suite 100, Newport Beach, CA 92660; Attention: President
(B) To Agency: [Agency]; [Agency Address]; Attention: [Plan Administrator Title] Notices shall be deemed given on the date received by the addressee.

16. Term of Agreement. This Agreement shall remain in effect for the period beginning _______________, 2023 and ending _____________, 2026 (“Term”). This Agreement may be terminated at any time by giving thirty (30) days written notice to the other party of the intent to terminate. Absent a thirty (30) day written notice to the other party of the intent to terminate, this Agreement will continue unchanged for successive twelve-month periods following the Term.

17. Amendment. This Agreement may not be amended orally, but only by a written instrument executed by the parties hereto.

Agenda Packet Page 228 of 293

18. Entire Agreement. This Agreement, including exhibits, contains the entire understanding of the parties with respect to the subject matter set forth in this Agreement.

In the event a conflict arises between the parties with respect to any term, condition or provision of this Agreement, the remaining terms, conditions, and provisions shall remain in full force and legal effect. No waiver of any term or condition of this Agreement by any party shall be construed by the other as a continuing waiver of such term or condition.

19. Attorneys Fees. In the event any action is taken by a party hereto to enforce the terms of this Agreement the prevailing party herein shall be entitled to receive its reasonable attorney’s fees.

20. Counterparts. This Agreement may be executed in any number of counterparts, and in that event, each counterpart shall be deemed a complete original and be enforceable without reference to any other counterpart.

21. Headings. Headings in this Agreement are for convenience only and shall not be used to interpret or construe its provisions.

22. Effective Date. This Agreement shall be effective on the date first above written, and also shall be the date the Agreement is executed.

AGENCY:

BY:

Plan Administrator Name
TITLE:

DATE:

PARS:

BY:

Tod Hammeras
TITLE: Chief Financial Officer
DATE:

Agenda Packet Page 229 of 293

EXHIBIT 1A

SERVICES
PARS will provide the following services for the [Agency Name] Public Agencies PostEmployment Benefits Trust:

1. Plan Installation Services:
(A) Meeting with appropriate Agency personnel to discuss plan provisions, implementation timelines, actuarial valuation process, funding strategies, benefit communication strategies, data reporting, and submission requirements for contributions/reimbursements/distributions;
(B) Providing the necessary analysis and advisory services to finalize these elements of the Plan;
(C) Providing the documentation needed to establish the Plan to be reviewed and approved by Agency legal counsel. Resulting final Plan documentation must be approved by the Agency prior to the commencement of PARS Plan Administration Services outlined in Exhibit 1A, paragraph 2 below.

2. Plan Administration Services:
(A) Monitoring the receipt of Plan contributions made by the Agency to the trustee of the PARS Public Agencies Post-Employment Benefits Trust (“Trustee”), based upon information received from the Agency and the Trustee;
(B) Performing periodic accounting of Plan assets, reimbursements/distributions, and investment activity, based upon information received from the Agency and/or Trustee;
(C) Coordinating the processing of distribution payments pursuant to authorized direction by the Agency, and the provisions of the Plan, and, to the extent possible, based upon Agency-provided Data;
(D) Coordinating actions with the Trustee as directed by the Plan Administrator within the scope of this Agreement;
(E) Preparing and submitting a monthly report of Plan activity to the Agency, unless directed by the Agency otherwise;
(F) Preparing and submitting an annual report of Plan activity to the Agency; (G) Facilitating actuarial valuation updates and funding modifications for compliance with the applicable GASB pronouncements and/or statements, if prefunding OPEB obligations;
(H) Coordinating periodic audits of the Trust;
(I) Monitoring Plan and Trust compliance with federal and state laws.

3. PARS is not licensed to provide and does not offer tax, accounting, legal, investment or actuarial advice.

Agenda Packet Page 230 of 293

EXHIBIT 1B

FEES FOR SERVICES
PARS will be compensated for performance of Services, as described in Exhibit 1A based upon the following schedule:

An annual asset fee shall be paid from Plan assets based on the following schedule:

For Plan Assets from: Annual Rate:
$1 to $10,000,000 0.25%
$10,000,001 to $15,000,000 0.20%
$15,000,001 to $50,000,000 0.15%
$50,000,001 and above 0.10%
Annual rates are prorated and paid monthly. The annual asset fee shall be calculated by the following formula [Annual rate divided by 12 (months of the year) multiplied by the Plan asset balance at the end of the month]. Trustee and Investment Management Fees are not included.

Agenda Packet Page 231 of 293

EXHIBIT 1C

DATA REQUIREMENTS
PARS will provide the Services under this Agreement contingent upon receiving the following information. Agency is solely responsible for ensuring that all information and documentation provided to PARS is true, correct, and authorized:

1. Executed Legal Documents:
(A) Certified Resolution
(B) Adoption Agreement to the Public Agencies Post-Employment Benefits Trust (C) Trustee Investment Forms

2. Contribution – completed Contribution Transmittal Form signed by the Plan Administrator (or authorized Designee) which contains the following information:
(A) Agency name
(B) Contribution amount
(C) Contribution date
(D) Contribution method (Check, ACH, Wire)

3. Distribution – completed Payment Reimbursement/Distribution Form signed by the Plan Administrator (or authorized Designee) which contains the following information:
(A) Agency name
(B) Payment reimbursement/distribution amount
(C) Applicable statement date
(D) Copy of applicable premium, claim, statement, warrant, and/or administrative expense evidencing payment
(E) Signed certification of reimbursement/distribution from the Plan Administrator (or authorized Designee)

4. Other information pertinent to the Services as reasonably requested by PARS and Actuarial Provider.

Agenda Packet Page 232 of 293

AGENDA BILL
Agenda Item No. 9.B.

Date: September 19, 2023
To: El Cerrito City Council
From: Crystal Reams, Finance Director/City Treasurer; Sky Woodruff, City Attorney
Subject: Consideration of a Financial Advisory Board Recommendation to Increase City Council Compensation

ACTION PROPOSED
Introduce by title and waive any further reading of an Ordinance to increase the City Council's compensation from $441 per month to $650 per month.

BACKGROUND
Monthly compensation for members of City Council is set by City ordinance. El Cerrito Municipal Code Section 2.04.170 states the following:

Each member of the council shall receive, as salary, the sum of four hundred and fortyone dollars per month, which shall be payable at the same time and in the same manner as the salaries are paid for other officers and employees of the city. Such salary is prescribed exclusive of any reimbursement for expenses incurred in the performance of official duties for the city, or for any amounts contributed by the city for retirement, health and welfare and federal social security benefits.

The current salary of $441 per month was passed by the City Council on September 16, 1991. According to research by City staff, prior to 1991 the City Council modified its salary at least four times: in 1968, the salary was $150 per month; in 1973, the salary was modified to $195 per month; in 1985, the salary was modified to $350.21 per month; and in 1989 the salary was modified to $400 per month.

Government Code section 36516 limits city council member compensation for general law cities based on the size of the city's population. For a city the size of El Cerrito, which was previously subject to this law prior to becoming a charter city, the maximum compensation is $300 but was allowed to be increased by 5% annually since the operative date of the last increase. Under Government Code section 36516.5, any allowable change to the compensation for members of a city council can only go into effect after at least one member of the city council begins a new term.

On January 1, 2024, Senate Bill 329 will go into effect, which will modify this regulation to increase the maximum to $950 per month. The intent of the bill is to help city councils become more diverse by increasing the allowable compensation to help individuals across a broader span of income levels with the ability to receive sufficient income for serving the public. The new law retains the requirement that a change in compensation can only go into effect after at least one member of the city council begins a new term.

Agenda Packet Page 233 of 293
Agenda Item No. 9.B.

In 2022, the Financial Advisory Board (FAB) included a discussion of City Council Compensation in their workplan, and subsequently created an ad-hoc committee to explore the topic.

ANALYSIS
Compensation for members of a city council is a municipal affair. The limits on city council salaries and procedural provisions of Government Code sections 36516 and 36516.5 apply only to general law cities, not to charter cities. El Cerrito is a charter city.

Pursuant to Section 100 of the Charter of the City of El Cerrito, the City Council may adopt ordinances with respect to municipal affairs, subject only to the limits of the Charter, the California Constitution and the United States Constitution. The City Council is not limited by Government Code section 36516.5 as to the operative date of a change in City Council salary. Therefore, the City Council may enact an ordinance that makes an increase in compensation operative prior to at least one member beginning a new term.

The FAB subcommittee of Members Patterson and White reviewed salaries of city councils in comparable cities, and provided information to the FAB at their July 2023 meeting. At their August meeting, the FAB further discussed options for the City Council's compensation and also reviewed Senate Bill 329 as a means of informing their discussion, acknowledging the law's intent to increase diversity in elected office. As a result, the FAB unanimously voted to recommend that the City Council adopt an ordinance that will increase monthly compensation from $441 per month to $650 per month. Additionally, the FAB intends to revisit the City Council's compensation again next year and on an ongoing basis.

While the FAB did not recommend a specific effective date for this increase, staff prepared the ordinance to take effect on January 1, 2024 so that the salary increase would be effective at the midpoint of the fiscal year.

Should the City Council decide to consider the recommendation and take action, the Council should hold the first reading of the ordinance by title only. On October 3, 2023, the second reading and adoption of the ordinance would be considered, and would go into effect on January 1, 2024.

STRATEGIC PLAN CONSIDERATIONS
This item is consistent with Goal A: Deliver exemplary government services.

ENVIRONMENTAL CONSIDERATIONS
This section is not applicable to this agenda item.

FINANCIAL CONSIDERATIONS
A monthly increase of $209 for each of the five members of City Council would increase compensation by a total $12,540 per fiscal year. If approved, the FY 2023-24 impact Agenda Packet Page 234 of 293
Agenda Item No. 9.B.
would be $6,270, which will be requested at the midyear budget update as an amendment to the City Council Budget.

LEGAL CONSIDERATIONS
The City Attorney has reviewed the ordinance and determined it meets all applicable regulations.

Reviewed by:

Karen Pinkos, City Manager
Attachments:

1. Ordinance

2. FAB City Council Compensation Recommendation
Agenda Packet Page 235 of 293
ORDINANCE NO. 2023-

AN ORDINANCE OF THE CITY OF EL CERRITO AMENDING EL CERRITO MUNICIPAL CODE SECTION 2.04.070 MODIFYING THE CITY COUNCIL’S MONTHLY

COMPENSATION
WHEREAS, the compensation for City Councilmembers is $441 per month and has not been increased since 1991; and
WHEREAS, under the current provisions of Government Code section 36516, the base salary for members of a city council for a city with a population the size of El Cerrito’s is $300, The base salary may be increases by five percent for each year since the operative date of the last change. Under Government Code section 36516.5, any change to the salary for members of a city council can only go into effect after at least one member of the city council begins a new term; and
WHEREAS, the State Legislature recent approved and the Governor signed Senate Bill 329 (Dodd, 2023), which will amend Government Code section 36516 effective January 1, 2024. Among other changes, the amendment sets the base salary for members of a city council with a population the size of El Cerrito’s at $950 monthly.

The bill states that increases in city council compensation “may help city councils become more diverse because increased compensation can help individuals from across different income levels receive sufficient income from their service to help ensure that they can continue to serve the public and support their families;” and WHEREAS, city council compensation is a municipal affair. The limits on city council salaries and procedural provisions of Government Code sections 36516 and 36516.5 apply only to general law cities, not to charter cities; and WHEREAS, El Cerrito is a charter city. Pursuant to Section 100 of the Charter of the City of El Cerrito, the City Council may adopt ordinances with respect to municipal affairs, subject only to the limits of the Charter, the California Constitution and the United States Constitution. The City Council is not limited by Government Code section 36516.5 as to the operative date of a change in City Council salary; and WHEREAS, the Financial Advisory Board reviewed the compensation of the City Council with comparable cities and determined that the salary should be increased to a sum of $650 per month.

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF EL CERRITO DOES HEREBY ORDAIN AS FOLLOWS:

Section 1: Section 2.04.070 is hereby amended to read as follows (additions in underline, deletions in strikethrough):

2.04.170 - Salary—Designated.

Each member of the council shall receive, as salary, the sum of four hundred and forty-one six hundred and fifty dollars per month, which shall be payable at the same time and in the same manner as the salaries are paid for other officers and employees of the city. Such salary is prescribed exclusive of any reimbursement Agenda Packet Page 236 of 293
for expenses incurred in the performance of official duties for the city, or for any amounts contributed by the city for retirement, health and welfare and federal social security benefits.

Section 2: Severability. If any section, subsection, sentence, clause or phrase of this chapter is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this chapter. The city council hereby declares that it would have passed the ordinance codified in this chapter, and each and every section, subsection, sentence, clause or phrase not declared invalid or unconstitutional without regard to whether any portion of this chapter would be subsequently declared invalid or unconstitutional.

Section 3: Effective Date. This Ordinance shall take effect and be enforced thirty days after the date of its adoption. The amendment to the Municipal Code set forth in Section 1 of this Ordinance shall be operative on January 1, 2024. Prior to the expiration of fifteen days from the passage thereof, the ordinance or a summary thereof shall be posted or published as may be required by law, and thereafter the same shall be in full force and effect.

THE FOREGOING ORDINANCE was introduced at a regular meeting of the City Council on September 19, 2023 and passed by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

ADOPTED AND ORDERED published at a regular meeting of the City Council held on October 3, 2023 and passed by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APROVED:
_
Lisa Motoyama, Mayor
ATTEST:

Holly M. Charléty, City Clerk
Agenda Packet Page 237 of 293

ORDINANCE CERTIFICATION
I, Holly M. Charléty, City Clerk of the City of El Cerrito, do hereby certify that this Ordinance is the true and correct original Ordinance No. 2023-XX of the City of El Cerrito; that said Ordinance was duly enacted and adopted by the City Council of the City of El Cerrito at a meeting of the City Council held on October 3, 2023; and that said Ordinance has been published and/or posted in the manner required by law.

WITNESS my hand and the Official Seal of the City of El Cerrito, California, on .

Holly M. Charléty, City Clerk
Agenda Packet Page 238 of 293
Date: September 19, 2023
To: Mayor Lisa Motoyama
Mayor Pro Tem Tessa Rudnick
Councilmember Paul Fadelli
Councilmember Gabe Quinto
Councilmember Carolyn Wysinger
From: Farhad Farahmand, Chair
City of El Cerrito Financial Advisory Board (FAB)
RE: FAB Recommendation – City Council Compensation
The Financial Advisory Board approved the following recommendation at its Regular Meeting on August 22, 2023:

Motion/Second: Member Dick Patterson; Member Kimberly White Action: The FAB recommends that the City Council adopt an ordinance that will increase their compensation from $441 per month to $650 per month.

Ayes: Chair Farhad Farahmand, Member Dick Patterson, Member Kimberly White
Noes: None

Absent: None
Respectfully Submitted,
Farhad Farahmand
Chair, Financial Advisory Board
Agenda Packet Page 239 of 293

AGENDA BILL
Agenda Item No. 9.C.

Date: September 19, 2023
To: El Cerrito City Council
From: Holly M. Charléty, City Clerk, City Management on behalf of City Council Ad-hoc Subcommittee of Mayor Lisa Motoyama and Councilmember Paul Fadelli
Subject: Study Session on City Board, Commission, and Committees

ACTION PROPOSED
Conduct a study session on City Boards, Commissions, and Committees (Advisory Bodies), consider recommendations made by the City Council ad-hoc committee and if applicable, provide staff direction.

BACKGROUND
The City of El Cerrito currently has a total of 13 Boards, Commissions, and Committees (Advisory Bodies). Each type of Advisory Body has a different function. Boards and Commissions are directly responsible to the City Council and fill advisory and/or quasijudicial roles. Commissions are composed of lay citizens while members for boards are selected for their special expertise. Committees sponsored by the City are intended to be working groups and do not fill quasi-judicial roles. The City Council has conducted several reviews of Advisory Body rules and procedures throughout the years. The most recent review was conducted in 2021 which focused on term length and limits, the appointment and removal process, as well as training requirements and compliance.

Over the latter part of 2022 and beginning of 2023, various topics or areas for discussion have been requested by members of the City Council regarding City Advisory Body policies and procedures. At the City Council meeting on March 21, 2023, Mayor Motoyama appointed herself and Councilmember Fadelli to an Advisory Body ad-hoc committee to meet, discuss, and return with recommendations for modifications to existing policy and procedures. The ad-hoc committee met a total of five times and discussed a number of topics. The committee is offering the following for discussion and consideration by the full Council with regards to the areas of communication, modifications to regulations, public safety committee, and youth participation.

ANALYSIS
Communications between City Council and Advisory Bodies The ad-hoc committee discussed several areas related to communication between appointed members of City Advisory Bodies and members of the City Council. In order to keep the City Council informed of the work and progress of Advisory Bodies and to ensure an avenue for Advisory Bodies to communicate to the City Council, the ad-hoc committee discussed Advisory Body Workplans, Accomplishments and Recommendations. The following recommendations are made by the ad-hoc committee in this area:

Agenda Packet Page 240 of 293
Agenda Item No. 9.C.
• #1 – Workplan
Each Advisory Body shall develop a two-year workplan. The workplan shall be developed with the assistance and guidance of the staff liaison to ensure that all areas of the workplan are within the scope of the Advisory Body responsibilities and the City’s Strategic Plan. The plan shall be adopted by the Advisory Body and posted on the City’s website no later than October 1, of applicable years.

Once adopted, the staff liaison will ensure that the workplan is transmitted to the City Clerk for placement on the next City Council agenda as a “receive and file” consent item. If a member of the City Council wishes to discuss the workplan with the advisory body, including prioritization or modification to the adopted plan, it may be requested at the meeting and will be agendized as a future discussion item with the advisory body chair. If implemented, half of the Advisory Bodies will implement an initial one-year workplan to stagger over a two-year period.

A workplan template shall be approved by the City Council with the City Clerk authorized to make non-substantive changes without Council approval. It is recommended that the template include the following areas:
o Goal/Objective, proposed activities, resources needed, estimated staff time needed, and timeline for completion (listed by Fiscal Year, in order of priority).
o Ongoing Projects with activities, resources needed, and estimated staff time needed.
o Prior Calendar Year Accomplishments including goal/objective, activities supporting goal and status.

Exceptions: Citizens Streets Oversight Committee, Civil Service Board, Design Review Board, and Planning Commission.
• #2 – Accomplishments
Included in the workplan template shall be a section to provide annual accomplishments of the Advisory Body. This portion of the workplan shall be updated annually by March 1st and will cover the accomplishment of the prior calendar year. Once the Advisory Body has generated this content, the staff liaison will ensure that the workplan is transmitted to the City Clerk for placement on the next City Council agenda as a “receive and file” consent item. A presentation on the workplan to the Council may be requested.

Exceptions: Citizens Streets Oversight Committee, Civil Service Board, Design Review Board, and Planning Commission.

Agenda Packet Page 241 of 293
Agenda Item No. 9.C.
• #3 –Recommendations
Advisory Bodies may make recommendations related to their adopted workplan, or applicable area(s) of responsibility. When such a recommendation is made, the staff liaison will ensure that it is transmitted to the City Clerk for placement on the next City Council agenda as a “receive and file” consent item. If a member of the City Council wishes to further discuss the recommendation with the advisory body, it may be requested at a council meeting and be agendized as a future discussion item with the advisory body chair.

Staff will include Advisory Body recommendations and comments in the agenda bill and or related materials when applicable to an item presented to the City Council. Recommendations that do not relate to the workplan or area(s) of responsibility will be presented to City Council as written public comment. At any time, the City Council may request a specific recommendation from a specific advisory body at any time.

Modifications to existing Advisory Body regulations
The ad-hoc committee discussed potential new regulations and made the following recommendations in this area:
• #1 – Service on Multiple Advisory Bodies
During the application process, priority shall be given to those who are not currently serving on another City Advisory Body and no individual shall not be appointed to serve on more than two advisory bodies at the same time. • #2 – Meeting Frequency
All Advisory Bodies shall try to meet once every two months, but not less than quarterly. Additional Advisory Body meetings can be held if staff are available and membership supports that need. The City Clerk shall provide an annual report of the total meetings held the prior calendar year for all Advisory Bodies.

Exceptions: Citizens Streets Oversight Committee will meet as indicated in the municipal code, Civil Service Board will continue to meet as needed, and Design Review Board and Planning Commission will continue to meet monthly. • #3 – Pre-Meeting Attendance Requirement
The pre-meeting requirement implemented in 2021, which requires an individual to attend two of the last three meetings held prior to applying, should be modified to encourage attendance prior to applying – but also require applicants to demonstrate knowledge in the interview of the current work of the Advisory Body.

Public Safety Committee
The ad-hoc committee discussed the request to consider expanding the Crime Prevention Committee's (CPC) jurisdiction and makes the following recommendation:

Agenda Packet Page 242 of 293
Agenda Item No. 9.C.
• #1 - Determine Consensus
Determine if there is a consensus by the City Council to expand the CPC jurisdiction to potentially include fire safety, Community Safety and Crime Prevention, and/or emergency response.

Youth Participation
The ad-hoc committee discussed establishing a process by which El Cerrito youth can participate on City Advisory Bodies and the following recommendations are made:
• #1 – Non-Voting Youth Member
Any advisory body may choose to recruit participation of a non-voting youth member who shall be a student at El Cerrito High School, or a resident of El Cerrito between the ages of 14-18. In order to participate, the youth member shall obtain written consent of a parent or guardian. Once appointed by an Advisory Body, the participant shall complete the Orientation/Handbook training and Sexual Harassment Prevention training. No other general rules or requirements related to members of advisory bodies shall apply. Participants will be encouraged to evaluate and share their experience with the City Council at the end of their service.

STRATEGIC PLAN CONSIDERATIONS
This action aligns with Strategic Plan Goal A: Deliver Exemplary Government Services by maintaining an emphasis on providing excellent customer service.

ENVIRONMENTAL CONSIDERATIONS
This section is not applicable to this agenda item.

FINANCIAL CONSIDERATIONS
Any modifications to the municipal code would require publication at a cost covered under the City Clerk’s approved FY 2023-24 budget.

LEGAL CONSIDERATIONS
This section is not applicable to this agenda item.

Reviewed by:

Karen Pinkos, City Manager
Attachments:

1. Presentation
Agenda Packet Page 243 of 293

BOARDS, COMMISSIONS, AND COMMITTEES

STUDY SESSION
CITY COUNCIL | SEPTEMBER 2023
Agenda Packet Page 244 of 293

STUDY SESSION
FOCUS

1. Communications between City
Council & Advisory Bodies

2. Modifications to General
Regulations

3. Public Safety Committee

4. Youth Participation
Agenda Packet Page 245 of 293
Communications between City Council & Advisory Bodies

1. Advisory Body Workplan:
a) Developed biennially (fiscal year) – ½ for 1 year for 1st to stagger b) Staff Liaison assists/guides to ensure within scope of advisory body responsibilities and City’s strategic plan
c) Workplan template shall be adopted by City Council
d) Plan adopted/posted on Advisory Body page no later than October 1 e) Once adopted, provided to City Council on consent (receive and file) o City Council may request a future agenda item to further discuss a workplan received
Agenda Packet Page 246 of 293
Communications between City Council & Advisory Bodies

2. Annual Accomplishments
a) Included in workplan template
b) Updated annual by March 1st covering the prior calendar year c) Provided to City Council on consent (receive and file) Exceptions from Workplan/Accomplishments:
a) Citizens Streets Oversight Committee (provides annual report under ECMC) b) Civil Service Board
c) Design Review Board
d) Planning Commission
Agenda Packet Page 247 of 293
Communications between City Council & Advisory Bodies
Sample Workplan
Agenda Packet Page 248 of 293
Communications between City Council & Advisory Bodies

2. Advisory Body Recommendations:
a) Must reference related workplan item(s) or applicable area of responsibility b) Submitted to the City Clerk, through the staff liaison c) Provided to City Council on consent (receive and file) a) City Council may request a future agenda item to further discuss a recommendation received
d) If related to a request by city staff will be included in the Agenda Bill or related materials presented to City Council
e) Recommendations not related to a workplan or area of responsibility will be presented to City Council as public comment
f) City Council can request recommendations from advisory body Agenda Packet Page 249 of 293
Potential
Modifications to
General
Regulations

1. Restrict serving on more than two advisory
bodies at the same time
a) Priority given to those not currently serving
on another body

2. Reduce meeting frequency to once every
two months, but not less than quarterly
a) Annual report provided to City Council on
total number of meetings held
b) Some exemptions including Planning and
Design Review

3. Revise pre-meeting attendance
requirement to strongly encourage
a) Applicants shall demonstrate knowledge of
current work of the advisory body
applied for
Agenda Packet Page 250 of 293
Public Safety
Committee
Determine if there is City Council consensus for
staff to research/develop modifications to
change the Crime Prevention Committee (CPC)
into a Public Safety Committee and include
areas such as:

1. Fire Safety

2. Community Safety and Crime Prevention

3. Emergency Response
* CPC currently develops/promotes crime prevention programs, promotes cooperation with local law enforcement and
awareness of methods to prevent crime, as well as advises the City Council regarding crime prevention programs.

Agenda Packet Page 251 of 293
Youth
Participation

1. Advisory Bodies may informally recruit and
appoint a non-voting youth member

2. Youth member must be a resident or student
in El Cerrito of high school age

3. Parent/Guardian consent to participation

4. Orientation/Handbook Training (includes
Code of Conduct) and Sexual Harassment
Prevention training required
a) No other general rules or requirements apply

5. Encouraged to evaluate and share
experience with Council
Agenda Packet Page 252 of 293

NEXT STEPS
 Public Comments
 Council Discussion
 Provide Staff Direction
 Return with applicable legislation
Agenda Packet Page 253 of 293
CITY HALL 10890 San Pablo Avenue, El Cerrito, CA 94530
Telephone (510) 215-4305 Fax (510) 215-4379 http://www.el-cerrito.org

SUPPLEMENTAL AGENDA MATERIALS
September 19, 2023

REGULAR CITY COUNCIL MEETING

PUBLIC COMMENT INDEX

1. Public Comments received
Agenda Item 9A – Establishment of the PARS Post-Employment Benefits Trust Program

1. Presentation
(Revised September 20, 2023)
Agenda Packet Page 254 of 293
CITY HALL 10890 San Pablo Avenue, El Cerrito, CA 94530
Telephone (510) 215-4305 Fax (510) 215-4379 http://www.el-cerrito.org

SUPPLEMENTAL AGENDA MATERIALS

PUBLIC COMMENT INDEX

REGULAR CITY COUNCIL MEETING
September 19, 2023
(Revised September 20, 2023)
The following Public Comments were received by 2:00:00 p.m. 9/19/2023, were provided directly to City Councilmembers in advance of the meeting, and were posted online as supplemental materials at www.el-cerrito.org/CouncilMeetingMaterials

Public Comments – Items Not on the Agenda

1. Robert Hrubes, Chair, Urban Forest Committee on behalf of UFC

2. Robin Mitchell

3. Cathy Bleier

4. Jen Kaczor

5. Cordell Hindler

6. Buddy Akacić (received at the meeting)

7. Act Now to Mitigate the Climate (received at the meeting)

Agenda Item 8A – Fire Hazard Abatement

1. Gary Prost
Agenda Item 8B – Cost Hearing Regarding Fire Hazard Abatement of a Public Nuisance for Properties Identified and pursuant to El Cerrito Municipal Code Chapter 16.26

1. Gary Prost
Agenda Item 9C – Study Session on City Board, Commission, and Committees

1. Howdy Goudey

2. Robin Mitchell

3. Jim Dolgonas
Agenda Packet Page 255 of 293
Not on the Agenda #1
September 19, 2023
El Cerrito City Council
El Cerrito City Hall
10890 San Pablo Ave
El Cerrito, CA 94530
Mayor Motoyama and City Council Members,
On August 14, 2023, the El Cerrito Urban Forest Committee, with a unanimous vote, endorsed a recommendation to City Council for its support in the development of a donation fund to generate urban forestry funds from private sources to supplement City funding.

The attached El Cerrito Urbari Forest Fund Recommendation document was developed by the Grants & Fundraising Ad-Hoc Committee of the El Cerrito Uran Forest Committee.

Action: The Urban Forest Committee approves the El Cerrito Urban Forest Fundraising Recommendation and authorizes Chair Robert Hrubes to submit the recommendation with a letter to the City Council in their September 19 meeting.

Motion / Second: Mitchell / Linhart
Ayes: Four (4) Hrubes, Hughes, Linhart, Mitchell,
Nays: None

Absent: Two (2) Bleier, Kaczor
Please consider acting on this recomendation.

Agenda Packet Page 256 of 293
Public Comment for items not on the agenda
City Council meeting 9/19/2023
Mayor Motoyama, Mayor Pro Tem Rudnick, and Council Members Quinto, Wysinger:

The Urban Forest Committee has developed and voted on a recommendation for the El Cerrito Urban Forest Fund, which is attached.

The Urban Forest Committee would like to have the City Council review our recommendation and hopefully support the re-opening of this fund in order to accept donations from residents and businesses in order to have the funds to improve the health of our urban forest.

Thank you
Robin Mitchell
El Cerrito Resident
Not on the Agenda #2
Agenda Packet Page 257 of 293
Subject: Public Comments on item not on agenda: Urban Forest Fund recommendation To Mayor Motoyama, Mayor Pro Tem Rudnick, and City Council Members:

Thank you for the opportunity to offer my comments in support of the El Cerrito Urban Forest Committee’s recommendations to move forward with implementing the Urban Forest Program Donations account. I have served on the El Cerrito Tree Committee/Urban Forest Committee since 2013 but am speaking as an El Cerrito resident, not on behalf of the Committee.

El Cerrito’s Urban Forest Committee’s charter includes direction to promote and foster public awareness, education, interest and support for urban forestry efforts. The Urban Forest Program Donations account was established in 2015 to accept donations to support the urban forest program. An unused balance remains in the fund available in the fund. It seems irresponsible and unresponsive NOT to use the existing funds in support urban forestry activities, as intended, but we may also be missing an opportunity to expand these funds and to engage more residents in urban forestry projects.

At our 2023 July 4th festival, informal surveys were offered at both Park and Recreation Committee and Urban Forest Committee tables. In the former, “Urban forest, park trees and landscaping” was rated most important among options for park management. In the Urban Forest table survey, the 3 highest areas of interest among 9 items were: street tree plantings, climate effects/adaptation/wildfire workshop, and tree walks. I would add that foot traffic to the Urban Forest committee table was constant the four hours I attended the table, which was gratifying and encouraging.

Our residents value their trees and the City’s forest, are interested in keeping them healthy, and are willing to donate funds to accomplish this. Given increasing climate change issues, tree cover is more important than ever for carbon sequestration, reduction of urban heat island effects, shade mitigation for pedestrians and bicyclists, water filtration for extreme storm events, and beneficial mental health effects (on which the research evidence just keeps growing).

I urge you to review the Urban Forest Committee’s recommendation for re-opening the fund so that we can do more to work with residents and interested community groups in protecting and enhancing our urban forest for current and future generations. Thank you for your consideration.

Respectfully,
Cathy Bleier
Not on the Agenda #3
Agenda Packet Page 258 of 293
Public Comment for items not on the agenda
City Council meeting 9/19/2023
Mayor Motoyama, Mayor Pro Tem Rudnick, and Council Members Quinto, Wysinger:

The Urban Forest Committee is seeking to re-open the El Cerrito Urban Forest Fund, as described in the attached document. Opening the fund would enable the receipt of donations from residents and businesses, to finance unfunded urban forest management efforts that have been identified as priorities in City plans.

The El Cerrito 2023 National Community Survey revealed the importance that its residents place on parks and open spaces. The results summary identified more than once that “The City’s natural environment and parks and recreational opportunities are valued by residents, and both areas are a top priority.”
In a survey of 28 residents at the 4th of July festival, conducted from the Park and Recreation Commission table, respondents ranked "Urban forest / park trees and landscaping" as the most important of five options.

As it continues to be a challenge to sufficiently fund urban forest projects identified as priorities by the City, the UFC requests the City Council's support in opening up this existing fund as a new funding stream, to put more resources towards an area prioritized by its residents.

Thank you,
Jen Kaczor
Not on the Agenda #4
Agenda Packet Page 259 of 293
El Cerrito Urban Forest Fund Recommendation
Prepared by the Grants & Fundraising Ad-Hoc Committee of the El Cerrito Urban Forest Committee Overview
The City of El Cerrito Urban Forest Management Plan {2007) outlines the community, environmental, and economic benefits that a vital urban forest is expected to provide, and establishes these benefits as the standard of performance for the City of El Cerrito's urban forest.

In order to meet this standard, the City's urban forestry effort must provide: intelligent planning and management, community and government commitment, consistent funding, and excellent maintenance.

Within the plan, one of the recommended actions for the Urban Forest Committee is to Generate urban forestry funds from private sources to supplement City funding.

Further on in the plan, one of the listed Elements of a Successful Urban Forest is Consistent Funding, and elaborates: Strong community supporters can bring in supplemental funding through sources such as grants, donations, and local fund-raising efforts in order to fund special projects and to maintain pub/it visibility of urban forestry efforts.

The Urban Forest Program Donations account was established in 2015 to accept donations to support the urban forest program, and it is the Urban Forest Committee's understanding that there is an unused balance available in the fund.

The UFC, and specifically the Grants & Fundraising Ad-hoc Committee, is seeking to re-open the fund in pursuit of donations to support urban forest management efforts that have been identified as priorities for the City, and that are currently without available funding through City sources.

Value for the City and its citizens
El Cerrito is committed to preserving and improving its urban forest. The City has been designated as a Tree City USA by the Arbor Day Foundation, has a full-time environmental programs managers/City arborist, and established an Urban Forest Committee. Due to fiscal constraints within the City's budget, funds are not readily available to fully support projects documented in City plans (such as the Urban Greening Plan and the Urban Forest Management Plan). An El Cerrito Urban Forest Fund would provide a mechanism for residents to contribute towards an improved urban forest.

Agenda Packet Page 260 of 293
The 2013 El Cerrito Tree Inventory provided a benefit analysis of the value of public trees, and identified up to 4,000 vacant public planting sites throughout the City:
• El Cerrito's public trees provide annual benefits of $1.3 million. • For every $1 spent on public trees, the residents of El Cerrito receive $4.28 in benefits • El Cerrito's public trees are reducing annual electric energy consumption by 797 megawatt hours and annual natural gas consumption by 16,859 therms. • City trees remove 1.1 tons of pollutants from the air and they reduce annual storm-water runoff volume by 9 million gallons.
• They sequester 551 tons of atmospheric CO2 per year.

Other benefits include:
• Lowered temperatures from shade provided by trees
• Recreational opportunities in parks
Resident and community groups interest in the urban forest In the 2022 National Community Survey (NCS), about 8 in 10 residents identified both the natural environment and parks and recreation opportunities as an essential or very important area of focus for the community in the next two years, placing them amongst residents' top priorities for the City.

Relevant community groups:
• El Cerrito Trail Trekkers
• Friends of Five Creeks
• Strollers and Rollers
Outreach & communications
The Grants & Fundraising Ad-hoc Committee and the full Urban Forest Committee would seek to inform El Cerrito citizens of the fund through new and available sources, including:
• City publications including the Green Happenings newsletter and the Rec Guide • Byline, the El Cerrito Chamber of Commerce monthly newsletter • Community groups (Strollers and Rollers. Friends of Five Creeks. El Cerrito Trail Trekkers) • Urban Forest Committee mailing list
• Public comment periods during City Council meetings
• Word of mouth
Agenda Packet Page 261 of 293
Potential projects to fund
• Updating the City's tree inventory ($40K expected budget) • Tree planting and maintenance
• Arbor Day events
• Educational workshops
• Urban forest deferred maintenance in City parks {Identified in Appendix D, Table 2 of the 2019 Parks and Recreation Facilities Master)
Managing the fund
The Public Works Department, through the Urban Forest Program, would manage the fund, spending only on projects identified or added in consultation with the Urban Forest Committee.

Staff will communicate and report on projects that have been funded at least once annually through the Urban Forest Committee and available City channels.

In conclusion
In pursuit of the benefits produced from an actively managed and healthy urban forest, and to respond to the priorities of City residents, the Urban Forest Committee's Grants & Fundraising Ad-hoc Committee seeks City support to re-open the tree fund and accept donations from citizens and El Cerrito businesses. This would enable the City to fund projects to improve the health of its urban forest and reduce the number of vacant public planting sites, without being fully reliant on City funds.

Agenda Packet Page 262 of 293
From: Cordell Hindler
To: City Clerk
Subject: Public Comments
Date: Thursday, September 14, 2023 3:59:02 PM
Hello Mayor Motoyama, Council Members and Staff,
I AM Submitting the Following Comments into the Record:

1. For the October 3rd Agenda, The Council Should Direct Staff to Schedule a Presentation from Koff& Associates in Regarding the Class & Comp Study.

2. Also To Have Danny Wan To Present on the Port of Oakland Sincerely
Cordell
Not on the Agenda #5
Agenda Packet Page 263 of 293
ncof:
national council on aging.

NationallnstituteOf
SeniorCenters

RECEIVED

AT THE MEETING OF
SEP 192023
September ~L~~0
Albany Senior Center Celebrates
{Nationaisenior Center MOlltn)
Discover all th~ fabulous programmi~gthat the·· ---~.--/ center will be highlighting this month
National Senior
Center Luncheon
Tuesday Matinee
Movies
Concert in the park
"Senior Section"
Socials
National Senior Center Luncheon - Friday, September 29, 12:00 - 1:30 pm - $5 fee Concert in the Park "Senior Section" - Wednesday, September 20, S:30 - 8:30 pm at Memorial Park, 1325 Portland Ave Tuesday Matinee Movies at 1:30 pm; September S: The Art of Racing in the Rain, September 12: Guillermo del Taro's Pinocchio, September 19: Asteroid City, September 26: Dog Gone - $1 popcorn donation Socials - Daily droo-in classes where you can meet new friends1 try new things, and have fun! II-':" .:l!I • I
I!] ~ . More Information
Register at Senior Center, 846 Masonic Ave
or call (510) 524-9122
Agenda Packet Page 264 of 293
El Cerrito City Council:

Act Now to Mitigate the Climate Emergency!

RECEIVED
AT THE MEETING 011
SEP 192023

CITY OF EL CERRITO
cITYCLERK
Since passing its first Climate Action Plan (CAP) in 2010, El Cerrito has made little progress in reducing greenhouse gas emissions. Despite having declared a climate emergency in 2019, the City Council has repeatedly deferred actions that would implement known climate solutions.

In October 2022, a City-engaged consulting firm, hired to recommend plans to implement the CAP, identified "early wins" that the City could accomplish in a short time span. Those "early wins" were identified in January 2023; the City, however, has indicated the earliest it will consider implementing plans is November 2023.

An easy "early win" put forward by the El Cerrito Environmental Quality Committee, is to implement an ordinance requiring that all NEW CONSTRUCTION in El Cerrito, both residential and commercial, be fully electric. Natural gas is both a major contributor to greenhouse gas (GHG) emissions and a serious health threat inside homes and businesses. This is a measure that over 70 municipalities in California have already enacted, including many in Contra Costa and Alameda County.

With plans for new construction underway right now, there is no time to waste to establish all-electric new construction in our City.

Agenda Packet Page 265 of 293
We, the undersigned, ask the City Council to immediately direct City staff to prepare a draft ordinance requiring new construction in El Cerrito to be all electric, and to vote to implement such an ordinance by N.ov. / t , 2023.

We must act now to avert climate disaster!
Name (PLEASE PRINT) Signature Home Address Email
(for more info only)
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Agenda Packet Page 266 of 293
We, the undersigned, ask the City Council to immediately direct City staff to prepare a draft ordinance requiring new construction in El Cerrito to be all electric, and to vote to implement such an ordinance by Np\/. IS, 2023.

We must act now to avert climate disaster!
Name (PLEASE PRINT) Signature Home Address Email
(for more info only)
Agenda Packet Page 267 of 293
We, the undersigned, ask the City Council to immediately direct City staff to prepare a draft ordinance requiring new construction in El Cerrito to be all electric, and to vote to implement such an ordinance by 1'.f ov. JS, 2023.

We must act now to avert climate disaster!
Name (PLEASE PRINT)
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(for more info only)
Agenda Packet Page 268 of 293
We, the undersigned, ask the City Council to immediately direct City staff to prepare a draft ordinance requiring new construction in El Cerrito to be all electric, and to vote to implement such an ordinance by· Nov,·-u;, 2023.

We must act now to avert climate disaster!
Name (PLEASE PRINT) Signature Home Address Email
(for more info only)
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Agenda Packet Page 269 of 293
We, the undersigned, ask the City Council to immediately direct City staff to prepare a draft ordinance requiring new construction in El Cerrito to be all electric, and to vote to implement such an ordinance by Nov. JS, 2023.

We must act now to avert climate disaster!
Name (PLEASE PRINT) Signature Home Address Email
(for more info only)
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Agenda Packet Page 270 of 293
We, the undersigned, ask the City Council to immediately direct City staff to prepare a draft ordinance requiring new construction in El Cerrito to be all electric, and to vote to implement such an ordinance by Nov, J 5 1 2023.

We must act now to avert climate disaster!
Name (PLEASE PRINT)
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(for more info only)
Agenda Packet Page 271 of 293
We, the undersigned, ask the City Council to immediately direct City staff to prepare a draft ordinance requiring new construction in El Cerrito to be all electric, and to vote to implement such an ordinance by Nov. I 5 , 2023.

We must act now to avert climate disaster!
Name (PLEASE PRINT) Signature Home Address Email
(for more info only)
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Agenda Packet Page 272 of 293
We, the undersigned, ask the City Council to immediately direct City staff to prepare a draft ordinance requiring new construction in El Cerrito to be all electric, and to vote to implement such an ordinance by Nov, rs, 2023.

We must act now to avert climate disaster!
Name (PLEASE PRINT)
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Agenda Packet Page 273 of 293
We, the undersigned, ask the City Council to immediately direct City staff to prepare a draft ordinance requiring new construction in El Cerrito to be all electric, and to vote to implement such an ordinance by ·NO v. J 5, 2023.

We must act now to avert climate disaster!
Name (PLEASE PRINT)
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Signature Home Address Email
(for more info only)
Agenda Packet Page 274 of 293
Agenda Item No. A + B
From:

To:

Subject:

Date:

Gary Prost
City Clerk
Public Comments: Agenda Item 8A and 86, Fire Hazard Abatement Tuesday, September 19, 2023 11:39:23 AM
Caution! This message was sent from outside your organization.

Mayor Motoyama and City Council:

I am Gaiy Prost with Make El CeITito Fire Safe, a group of concerned neighbors that advocate for fire risk reduction in El CeITito. I would like to commend both Traviss Crnmpacker, Fire Prevention Officer; and Chase Beckman, Fire Mai·shal, for their ongoing and valiant efforts to reduce fire risk in our community by inspecting and issuing warnings to residents with overgrown vegetation on their prope1iy. They have also taken action to reduce fuel load along emergency evacuation routes (for example, Brewster and Arlington) and have supervised maintenance of the 100-foot fuel break ai·ound the Hillside Natural Area.

More needs to be done, and what has been accomplished needs to be maintained, but we recognize that this is an ongoing process and applaud the steps taken so far. This is time and money well spent.

Sincerely,
-
~ ' El CeITito, CA 94530
I [i] I Virus-free.www.avg.com
Agenda Packet Page 275 of 293
Sept 19, 2023
City Council
City of El Cerrito
10890 San Pablo Avenue
El Cerrito, CA 94530
RE: Comments on agenda item 9C, proposed advisory body policy changes Dear Mayor Motoyama and Council Members,
While I am the current chair of the Environmental Quality Committee, the following are my personal comments, based on 14 years as an advisory body volunteer, regarding the proposed policy changes for advisory bodies introduced by the Council ad-hoc Subcommittee on Advisory Bodies. For your reference, I have also copied below a letter sent as EQC chair, that was the result of a formal vote of the EQC, already entered into the Council’s public record at your January 17th 2023 meeting, because it contains EQC advice to Staff and Council directly relevant to this topic dating back to Oct. 10, 2023, when the EQC first voted unanimously to send a letter raising concerns about communication between advisory bodies, Staff and Council. It is notable and disappointing that there was no mention of this formal communication from an advisory body on this exact topic in the Staff report, even though it likely contributed to the formation of the Council ad-hoc Committee to consider these issues.

First, I want to thank you for your attention to improving the policies for advisory bodies, and, most importantly, improving communication between Advisory Bodies, Staff and Council. While there are positive suggestions put forth by the Council ad hoc Committee, there are also some suggestions that are not the right direction, as well as items that have not been addressed. I hope the Council will continue a more robust discussion of this issue before providing direction to staff to move forward with specific policies. In particular, for an item with significant impact on advisory bodies, what has been the outreach to the advisory bodies themselves during this process? I ask you to consider waiting to give direction to staff until Council Members have attended the meetings of advisory bodies for which they are liaisons, presented the proposed changes, and taken input from advisory body members as a specific agendized item, or as part of the Council update to the meeting.

Here are itemized responses to the specific policy changes suggested by the Council ad hoc Committee:

1. Workplan - In my experience on the EQC, an annual workplan process has worked well and a two year workplan may not be frequent enough for timely updates. It also does not give as much of an opportunity for some members to participate in the plan generation when they are on the committee for less than 2 years. If advisory body workplans are completed in October, will they be used to provide input to Staff workplan development? Agenda Item 9C #1
Agenda Packet Page 276 of 293

2. Accomplishments - It seems unnecessarily disjointed that the workplan is done in Oct. but the accomplishments section is completed in March. It is more natural to do these together, as we have in the past, because consideration of past accomplishments informs future work. It is also inconsistent to fill in accomplishments annually but the workplan every two years when it is part of the same document. Doing both activities together on an annual basis makes more sense and is more productive. In the past, there have been a number of advisory bodies that did not complete regular workplans and also did not give presentations to Council, but the EQC has been very consistent with the generation of an annual workplan and presentations to Council. It may not be appropriate for every advisory body to make a presentation to Council, but these have been informative presentations for Council, and the public, in the past, and it is the wrong direction to move away from regular advisory body presentations to Council, when we should be bolstering that communication, instead. For instance, after many years of presenting to Council, in recent years EQC is no longer being invited to present to Council. As a member of the public, I always learned a lot by watching some of the other advisory body presentations, like the Arts and Culture Commission, etc. Many of the proposed changes like this leave the impression that Staff and Council are valuing advisory bodies less and less, and providing fewer opportunities for public spotlights and recognition of advisory body work. This policy update should be actively enhancing advisory body communication with Staff and Council, including increasing opportunities to recognize the importance and contributions of volunteer advisory bodies. These sentiments are not forthcoming in all the proposed changes, nor has it been helped by an elapsed year of near silence on the issue, since it was first raised.

3. Recommendations - I appreciate the proposed changes on advisory body recommendations to Council. These are positive improvements that are consistent with the recommendations in the EQC’s January 17th 2023 letter. While the consent agenda item (or another action item at the will of the Council) is a more appropriate way for the advisory body communication to be received, it is equally important how the Council responds, which is more of a culture/relationship aspect, rather than something that can be codified in a policy. The Council has no obligation to agree with an advisory body recommendation, but the advisory body, and the public, deserve to hear a response of some kind from the Council. Silence and neglect is neither respectful nor helpful. It will be up to Council Members to pull consent communications and make comments, or direct an item to come back, to fulfill any meaningful dialog on the topic raised, and I hope this will become a prevailing practice. Another issue is that this recommendation policy only addresses recommendations to Council. The founding resolution of the EQC, 2008-13 (copied below), states that the EQC is “to serve in advisory capacity to the City Council, staff, other boards, commissions, and committees.” The proposals presented do not provide any clarity on the policy of how advisory bodies advise and communicate with staff and other bodies, when they are tasked to do so. This is particularly important because the Jan 17th 2023 communication to Council, copied below, followed the originating EQC communication on this topic to staff (Oct 11, 2022), that was followed with no response to the EQC letter, despite three requests for an update through the staff liaison, other than that “there would be no action taken.”
Agenda Packet Page 277 of 293
Modifications:

1. Service on Multiple Advisory Bodies - Limiting to serving on two advisory bodies at a time seems fine and reasonable.

2. Meeting Frequency - It is ok if advisory bodies don’t have a scope of work to warrant meeting every month, but the frequency should start with monthly meetings and only work down to every other month, or quarterly, if the work of the body does not warrant meeting more frequently. There has been a recurring impression imposed on Advisory Bodies that they are a burden on staff and that there isn’t much capacity to support the work of citizen volunteers. This undermines volunteer morale and undervalues the advisory bodies and the free work they do for the city. In a time that budget has been the dominant focus of the City, it should be recognized and appreciated that the City benefits from the free labor of volunteers doing work that the City would otherwise have to pay for, or that wouldn’t get done, or that would end up costing the city much more to address in the future. The return on investment of staff time coordinating volunteers is probably much better than many other tasks they might do, and should be prioritized instead of shed as a burden.

3. Pre-meeting Attendance Requirement - This meeting requirement had become too stringent and was a barrier to a welcoming and timely addition of members to Committees.

It is highly valuable to have applicants who are familiar with the committee, but I agree with the language relaxing this requirement.

Public Safety Committee

1. I agree with the proposal to broaden the scope of the Crime Prevention committee to become the Public Safety Committee. In particular, the new scope should include emergency/disaster preparedness.

Youth Participation

1. I appreciate and welcome the intention to include youth participation on advisory bodies, as suggested. However, I think it is unnecessary and disrespectful for youth participants to be limited to non-voting members. A youth participant is fully qualified to take part in the votes that take place in a committee like the EQC and we should show them that we value their contributions by allowing them to vote.

Thank you for your time and consideration,
Howdy Goudey
El Cerrito
Agenda Packet Page 278 of 293
From Resolution 2008-13:
“NOW THEREFORE, BE IT RESOLVED that the City Council of the City of El Cerrito hereby establishes an Environmental Quality Committee, with the necessary staff liaison assigned by the City Manager, with the following duties and responsibilities:
● To serve in an advisory capacity to the City Council, staff, other boards, commissions, and committees, and the residents of the City with regard to environmental quality issues within the City of El Cerrito;
● To recommend programs, policies, and ordinances to the City Council and promote the City's environmental quality efforts; and
● Promote and foster public awareness, education, interest and support for environmental quality efforts, foster volunteer opportunities, and educate El Cerrito residents regarding environmental quality and issues relating to environmental impacts.

From my Dec. 8 2022 email communication as EQC chair to EQC staff liaison:

On Nov. 2, prior to our Nov. 8 meeting, I made the following request regarding the memo EQC sent to the city manager at our October meeting: "I'd like to see some timeline commitments offered for follow-up on the issues we raised, so this actually gets attention and action and doesn't just slip into the background."
At the Nov. 8th meeting the only report back was "It was received by the City Manager." Immediately after that meeting I sent: "I was very disappointed by the report on the status of the EQC memo to staff. It is highly disrespectful to an advisory body to not respond to our concerns with at least a plan, next steps and timeline (as I requested a week ago as a minimum response)." To which you responded on Nov. 9: "I passed along the recommendation to the City Manager. I’ll circle back again internally and aim to have something to report back by the next meeting." Following this request for an update through the staff liaison, the staff report back at the December EQC meeting was that there would be no action on our communication, so the EQC was not offered a meaningful response, even though we were communicating about how to best achieve the stated duties of our committee in resolution 2008-13.

Agenda Packet Page 279 of 293
1/17/2023
El Cerrito City Council
El Cerrito City Hall
10890 San Pablo Ave.

El Cerrito, CA 94530
Mayor Motoyama and City Council Members,
The following recommendations regarding City advisory body communication with Council and Staff were unanimously approved at our October 2022 meeting and presented to City staff for feedback.
10/11/2022 - Move/Second: Members Weinstein/O'Connor Action: Passed a motion to recommend the EQC support the sending of the memo from the EQC Goals Subcommittee to the City Manager. Ayes: Goudey, Vekony, Akacic, Miner, Mitchell, Molnar, O'Connor, Tarbet, and Weinstein Noes: None Absent: Pavel, Spitalnik, and Tsutsui After waiting two months for a response, The EQC was informed at our December meeting that Staff chose to take no action on the memo we sent, and there would be no response or dialog on the topic.

At our January 10th 2023 meeting, the EQC voted unanimously to send the same document to the Council for your consideration, enclosed below.

Thank you for your consideration,
Howdy Goudey
Chair, Environmental Quality Committee
Agenda Packet Page 280 of 293
Report from EQC’s Goals Subcommittee on improved communication with City Council, staff, other boards. Oct. 10, 2022
Introduction. The Environmental Quality Committee has been serving the city since the advisory committee was created 14 years ago, with a purpose that includes “to serve in an advisory capacity to the City Council, staff, other boards, commissions and committees.” In an effort to better utilize the skills of the EQC, which includes many people in environmental professions and academia, and to improve communications between the EQC and other city operations, the EQC makes the following recommendations.

They answer to concerns among members of the EQC, and some members of the public, that some EQC recommendations in the recent past have not been presented to the council in an effective way, and have not elicited response or dialog.

In addition, the EQC’s role in advising city staff and other committees has been hindered because there is no effective path for such communications to occur.

The EQC hopes to work with the city manager and/or the manager’s designees to develop these ideas in order to boost the EQC’s ability to help the city address the ongoing climate crisis and other environmental concerns.

Our recommendations:

How EQC proposals and other ideas are presented. We propose that EQC policy proposals be presented to the City Council and other committees and commissions in the form of written EQC reports that would be prepared by members of the EQC and generally vetted by the EQC’s staff liaison.

These would be short of “staff reports,” requiring very little staff time, and would represent the views not of city staff but of the majority of the EQC.

These could come before Council or other committees as agenda items, either on the consent calendar or action items, or could be included within a council packet, for example, as part of a larger matter (for example, Climate Action Plan or San Pablo Specific Plan revisions.) Currently, the presentation of EQC proposals and other advice to the council and other boards comes through 3-minute public comment, or informally through the EQC liaison. This does not give our proposals the weight they deserve. A distinction needs to be seen between general public comment and a report from an official advisory body.

The EQC should play a role early in the process of developing environmental policies.

The EQC could more often serve as a sounding board for public input by hosting public hearings on proposed policies.

This is something the EQC has done periodically, starting with the animal ordinance in 2009, which arose from public comment to the EQC before we hosted hearings and the council passed an ordinance allowing for the keeping of chickens and goats.

But often, environmental policy has come down to the EQC from staff and council after it has been substantially developed, and the EQC can only comment, somewhat after the fact. It would be good to clarify how the EQC communicates with city staff. One of our charges is to oversee how city staff actions affect the environment. We are cognizant that city staff is busy and that frequent communication, especially from individual members, would be a problem.

But once a majority of the EQC reaches a conclusion about city operations that affect the environment for good or ill, and when the EQC has developed recommendations, we need a formal way to present them, and when warranted, receive feedback and/or take part in a discussion.

Agenda Packet Page 281 of 293
Public Comment for item 9C on the agenda
City Council meeting 9/19/2023
Mayor Motoyama, Mayor Pro Tem Rudnick, and Council Members Quinto, Wysinger:

I am currently a member of the Urban Forest Committee and previously was a member of the Park and Recreation Commission for 2 terms (8 years). My comments below are based on my experiences on both of those advisory committees.

I have the following comments:

Consulting with advisory bodies before recommendations are put in place I am on the Urban Forest Committee and attend the Environmental Quality Committee meetings, and I don’t recall that the City Council ad-hoc committee ever visited those meetings to get feedback from them about the changes being proposed. I would hope that communication would happen before these new recommendations are put in place, in order to get feedback from the advisory bodies and potentially amend some of the recommendations.
#1 - Workplan
I think that the current procedure for developing an annual workplan works well, and I would not be in favor of a 2 year workplan.
#2 - Accomplishments
I do not agree that the accomplishments should be developed at a different time than the workplan. I think the accomplishments should be determined at the same time that the workplan is generated, in order that they both reflect the real state of the activities of the advisory bodies. I don’t see any reason to separate the two.
#3 - Recommendations
I think it is appropriate to include advisory body recommendations on the consent calendar. I also think it is appropriate for the City Council to include a method for responding to the recommendations. In the past, when recommendations have been made, generally there is no response, even from the staff liaison at an advisory board meeting. It is important that the advisory body know that the City Council has considered their recommendation and how they will proceed, based on that recommendation.

Modifications to existing Advisory Body regulations
#1 - Service on Multiple Advisory Bodies
I agree that membership on 2 advisory bodies is reasonable. #2 - Meeting Frequency
Agenda Item 9C #2
Agenda Packet Page 282 of 293
I think that advisory bodies should be able to decide the frequency of their meetings. I think many of the advisory bodies should meet monthly, unless their activities do not warrant that frequency. But they should not be prevented from meeting monthly. I understand that those meetings are considered a burden to staff, but the members of those committees are volunteering their time and contributing their expertise to issues of importance to the city. I think that commitment should be respected by allowing them to meet as often as monthly.
#3 - Pre-meeting Attendance Requirement
I think it is good for prospective members to understand how the advisory body operates by attending a few meetings, but I agree that the previous requirement was too strict, and am in favor of this new modification.

Public Safety Committee
I agree that expanding the Crime Prevention Committee to include fire safety is a very good suggestion.

Youth Participation
#1 - Non-voting members
I do not agree with the idea that youth members are non-voting. I think it is extremely important to include the youth perspective in these advisory bodies and I believe that they should have the same standing as the other members, ie, they should be able to vote. It is disrespectful to not allow them to be voting members, and they are fully capable of understanding the issues and casting a vote. I suspect if you make them non-voting members there will be considerably less interest in being on an advisory body.

Thank you
Robin Mitchell
El Cerrito Resident
Agenda Packet Page 283 of 293
From: Jim Dolgonas
To: City Clerk
Subject: Public Comments Agenda Item 9C
Date: Tuesday, September 19, 2023 1:20:10 PM
Caution! This message was sent from outside your organization.

This item includes considering possible expansion of the Crime Prevention Committee (CPC) to include fire safety, community safety, crime prevention and/or emergency response. In considering this proposal, I would like to request, as a member of the Crime Prevention Committee, that any expansion not include fire safety nor emergency response at this time. The CPC membership has only with this last meeting been increased to five; a few months ago there were only 3 members, making it difficult to obtain a quorum. As a result, I feel the newly constituted committee is only now beginning to focus on the current charge. To add such a broad area such as Fire Safety in the charge to the committee would not be productive at this time. Perhaps this can be reconsidered in a year or two. And, in the meantime, I would also suggest that emergency response not be added to the scope of the committee either. While there has been discussion over the last several years of the need for emergency response planning and conducting an evacuation drill, these activities can occur via direction to the City manager without need for participation by the CPC.

Please give the CPC a chance to be effective with its current scope before expanding its scope.

Respectfully,
Jim Dolgonas
El Cerrito Resident and CPC Member
Agenda Item 9C #3
Agenda Packet Page 284 of 293

CITY OF EL CERRITO
ESTABLISHMENT OF A SECTION 115 TRUST
SEPTEMBER 19, 2023
Agenda Item 9A
Agenda Packet Page 285 of 293
2 Background
 The City has been interested in setting up a Section 115 Trust (the “Trust”) as a strategy to manage its pension costs, beginning back in mid-2021, when City Council passed a motion to direct staff to establish the Trust  Since then, City staff has conducted research and consulted with its financial advisor, NHA Advisors (“NHA”), to help guide the process of establishing the Trust
 Progress was temporarily stalled due to severe staffing issues in the Finance Department; however, in the past few months City staff has worked with the City’s Financial Advisory Board (“FAB”) to consider pension cost funding as a priority
 On August 15, 2023, City Council directed staff to pursue working with Public Agency Retirement Services (“PARS”) to establish and fund the Trust Agenda Packet Page 286 of 293
3 $0.0
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
$7.0
$8.0
$9.0
$10.0
20182019202020212022202320242025202620272028202920302031203220332034203520362037203820392040204120422043204420452046 Millions
Recap of the City’s Pension Challenge
Historical and Projected CalPERS Unfunded Accrued Liability (“UAL”)  The latest CalPERS actuarial reports
show the City’s UAL increasing from
$57.8M to $85.0M due to CalPERS’
-7.5% investment returns in FY 2021-
22  Over the last decade, the City’s UAL
balance has nearly doubled from $43M
at FYE 2013 to $85M at FYE 2022
 CalPERS recently reported preliminary
FY 2022-23 investment returns of 5.8%,
which could increase the City’s UAL by
~$1M in next year’s actuarial reports
 The City’s $3.2M UAL payment in
2018 increased to $6.2M in 2023;
Projected payments peak at nearly
$10M in 2031.
 UAL will fluctuate annually moving
forward based on future CalPERS
investment returns & assumption
changes
2022:
$85.0M
2021:
$57.8M
2020:
$74.5M
UAL
Balance
(FYE):

Returns: 4.7% 21.3% -7.5%
UAL Payments (as of
6/30/2022 CalPERS Valuation)
Source: City of El Cerrito CalPERS Actuarial Valuation Reports Agenda Packet Page 287 of 293
4 Managing the Pension Challenge
Benefits of a Section 115 Trust
Ability to “smooth out” higher UAL payments in the future by withdrawing funds from the Trust to supplement payments from the General Fund
Increased Budgetary Flexibility
• Trust assets can be accessed any time as long as the assets are used to fund the City’s pension obligations and pay associated expenses (e.g., normal cost contributions, normal cost or UAL reimbursement, Additional Discretionary Payments (“ADPs”) to CalPERS) Investment Control, Flexibility, and Diversification
•Offers the potential for assets to earn greater returns than the General Fund, as General Fund investment restrictions do not apply to Trust assets
• City maintains oversight and control of the investment manager and risk tolerance level • Investments can be tailored to the City’s unique demographics and needs •Diversification from CalPERS, who already manages $158 million of the City’s pension assets Potential for positive rating agency and investor consideration Agenda Packet Page 288 of 293
5 PARS Section 115 Trust Team
• Serves as record-keeper, consultant,
and central point of contact
• Sub-trust accounting
• Coordinates all agency services
• Monitors plan compliance
(IRS/GASB/State Government Code)
• Processes contributions/ disbursements
• Hands-on, dedicated support teams
• Investment sub-advisor to trustee U.S. Bank
• Investment policy assistance
• Uses open architecture
• Active and passive platform options
• Customized portfolios (with minimum asset level)
• 5
th largest commercial bank and one of the nation’s
largest trustees for Section 115 trusts
• Safeguard plan assets
• Oversight protection as plan fiduciary
• Custodian of assets
39 2,000+ 1,000+ 500+ 500K+ $7.2B
Years of Experience
(1984-2023)
Plans under
Administration
Public Agency Clients 115 Trust Clients Plan Participants Assets under Administration
160 $9.5T
Years of Experience
(1863-2023)
Assets under
Administration
104 $8.7B
Years of Experience
(1919-2023)
Assets under Management
& Advisement
Trustee Investment Manager
Trust Administrator & Consultant
Agenda Packet Page 289 of 293
6 Section 115 Trust Investment Options and Approach
 After adoption of the Trust, staff will meet with HighMark’s dedicated investment advisor to discuss the details of how the City’s Trust assets will be invested  There are 5 investment portfolios to choose from, as well as the option for active or passive management
 As the investment strategy and policy for the Trust is formulated, it will be open for review by City Council and FAB
 In the meantime, the City can choose to invest the $1 million initial deposit in a money market fund *Active Portfolios; 10-Year returns as of June 30, 2023 **Avg. LAIF apportionment rate (released quarterly)
over the 10-Year period ending June 30, 2023 Agenda Packet Page 290 of 293 7 Section 115 Trust Fees
Ongoing Fees
(Assumes $1M in Assets)
$1,000,000 (assets)
x 0.25% (fee)
$2,500
$1,000,000 (assets)
x 0.35% (fee)
$3,500
Total: $6,000
*PARS does not receive any compensation from the investments or any commissions, back-end loads, or any other forms of compensation **Subject to change due to rebalancing, as fees are waived for plan assets in First American Funds (money market).

Agenda Packet Page 291 of 293
8 Next Steps to Implement the Trust
1 City Council adopts tonight’s resolution authorizing City to join the PARS Section 115 Trust 2 City sends signed copy of resolution to PARS
3 PARS sends set of signature-ready documents to City
4 PARS coordinates meeting with City & HighMark to discuss investment options and select strategy, which will then support development of an investment policy (Note that this step may take more time than others due to City Council and FAB review; City may choose to invest in a money market fund while investment strategy and policy is being reviewed and finalized) 5 City signs documents and returns to PARS
6 PARS works with U.S. Bank to establish account
7 City makes contribution once account is ready
 After the Trust is implemented, PARS and HighMark continue to conduct annual reviews (unless more frequently desired by the City)
Agenda Packet Page 292 of 293
9 Action Needed from City Council

1. Adopt the PARS Section 115 Trust, with an initial investment of $1,000,000

2. Appoint the City Manager, or her successor or designee as the City’s Plan Administrator for the Section 115 Trust

3. Authorize the City’s Plan Administrator to execute the PARS legal and administrative documents on behalf of the City
Agenda Packet Page 293 of 293