Agenda, first session — Fairfield City Council, May 3, 2022 (part 1 of 2)

For individuals with hearing or speaking limitations, dial 711 or (800) 7352922 (English). For Spanish, Tagalog or other language, please dial (800) 8553000 and provide the communication assistant with the following City telephone number: (707) 3994010.

Pursuant to AB 361 regarding public meetings held during the COVID19 emergency, councilmembers may attend via teleconference. Members of the public can observe the meeting on Comcast Cable Channel 26, ATT UVerse 99 and webstreamed live at www.youtube.com/user/FFCATV/live .

Members of the public may join via Zoom at https://fairfieldca.zoom.us/j/84183030545 ? pwd=Wlh0NktTbTl3c0RyeVp6T1ZQMkNuZz09 or by phone: (669) 9006833 Webinar ID: 841 8303 0545 Passcode: 7074287400
CALL TO ORDER 6:00 PM
ROLL CALL
Councilmember Pam Bertani
Councilmember Cat Moy
Councilmember Doriss Panduro
Councilmember Chuck Timm
Councilmember Scott Tonnesen
ViceMayor Rick Vaccaro
Mayor Harry Price
INVOCATION Richard West, Liberty Christian Church
PLEDGE OF ALLEGIANCE
COUNCIL REPORTS
Packet Page 1 of 338

PRESENTATIONS

1.Employee Recognition Ceremony
Contact:Farbod Pirouzmand, (707) 4287397
a

2.City Manager Commendation Awards
Contact:Farbod Pirouzmand, (707) 4287397
a

3.Woman of the Year Proclamation to Dawn La Bar
Contact:Karen L. Rees, (707) 4287767
a

4.Public Service Recognition Week Proclamation
Contact:Karen L. Rees, (707) 4287767
a

5.Proclamation Declaring May 1 May 7, 2022 as the 53rd Annual Professional Municipal Clerk's Week
Contact:Karen L. Rees, (707) 4287767
a
PUBLIC COMMENTS
PUBLIC COMMENTS
Persons wishing to address the City Council on subjects not on the agenda but within the jurisdiction of the council may do so at this time. The council cannot discuss or take action on matters not on the agenda for this meeting, but councilmembers may briefly respond to statements made or questions raised by the public, ask for clarification from staff, refer the matter to staff, request staff to report back to the council at a subsequent meeting, or place the matter on a future agenda. To speak on an agenda item please use the “raise your hand” feature or press *9 on your phone. Speakers are limited to three minutes per item.

CONSENT CALENDAR
All matters listed on the Consent Calendar are to be approved with one motion unless a member of the City Council or the public requests that separate action be taken on a specific item.

6.Minute Action Approving Mayor's Appointment to the Solano County Mosquito Abatement District Board of Trustees
Recommended Action
Approve appointment.

Funding Source
N/A
Contact:Karen Rees, (707) 4287767
a

7.Second Reading and Adoption of Ordinance 202208 of the City Council of the City of Fairfield Packet Page 2 of 338

7.Second Reading and Adoption of Ordinance 202208 of the City Council of the City of Fairfield Amending Chapter 25, Article I, Section 25.12.3 of the Fairfield Municipal Code, Also Known as the City of Fairfield Zoning Ordinance and Zoning Map, Rezoning Approximately .68Acres at the Northeast Corner of Pennsylvania Avenue and Brighton Drive (APN: 0034022380) from Residential LowMedium: 6 (RLM:6) to Residential LowMedium (RLM) Recommended Action
Provide second reading and adopt Ordinance 202208.

Funding Source
N/A
Contact:Meily M. Sheehan, (707) 4287474
a

8.Resolution 202290 of the City Council of the City of Fairfield Reconsidering and Authorizing Public Meetings to be Held Via Teleconferencing Pursuant to Government Code Section 54953(e) and Making Findings and Determinations Regarding the Same Recommended Action
Adopt resolution.

Funding Source
N/A
Contact:Amber Alexander, (707) 4287402
a

9.Resolution 202291 of the City Council of the City of Fairfield Authorizing Acceptance of FY 20212022 Low Carbon Transit Operations Program Grant Allocations for Electric Infrastructure Upgrades at the Fairfield Corporation Yard
Recommended Action
Adopt resolution.

Funding Source
N/A
Contact:April Cobb, (707) 4343809
a

10.Resolution 202292 of the City Council of the City of Fairfield Authorizing Execution of the Improvement Agreement for the Canon Station – Zone II Pump Station Recommended Action
Adopt resolution.

Funding Source
N/A
Contact:Alvin Lei, (707) 4287476
a

11.Resolution 202293 of the City Council of the City of Fairfield Approving the Plans and Specifications and Awarding a Contract to First Serve Production, Inc. for the Allan Witt Community Park Tennis Courts Resurfacing Maintenance Project and Updating the Fiscal Year 2021/2022 Budget
Recommended Action
Adopt resolution.

Funding Source
$419,545; Parks Capital Projects Fund
Contact:Caroline Vedder, (707) 4287484
a

12.Resolution 202294 of the City Council of the City of Fairfield Approving the Report of the Packet Page 3 of 338

12.Resolution 202294 of the City Council of the City of Fairfield Approving the Report of the Advisory Board for Calendar Year 2021 and Proposed Budget for Calendar Year 2022 in Connection with the North Texas Street Business Improvement District; and Resolution 202295 of the City Council of the City of Fairfield Declaring Intention to Levy an Assessment Against Businesses within the North Texas Street Business Improvement District for Calendar Year 2022 and Setting a Time and Place for Hearing Objections Thereto Recommended Action
Adopt resolutions.

Funding Source
N/A
Contact:Dwayne Dalman, (707) 4287649
a
NEW BUSINESS

13.Minute Action Approving Mayor's Appointments to the Youth Commission Recommended Action
Approve appointments. Perform oath of office.

Funding Source
N/A
Contact:Karen Rees, (707) 4287767
a

14.Resolution 202296 of the City Council of the City of Fairfield Approving a Memorandum of Understanding with First 5 Solano Children and Families Commission for the Establishment of a First 5 Center in Fairfield
Recommended Action
Adopt resolution.

Funding Source
N/A
Contact:David Gassaway, (707) 4287400
a

15.Resolution 202297 of the City Council of the City of Fairfield Authorizing a Loan and Budget Transfer from the Intergovernmental Loan Fund to Landscaping and Lighting Maintenance District No. 7 – Rolling Hills for Increased Landscape Maintenance and Consulting Services through Fiscal Year 20222023 and Authorizing an Update to the Fiscal Year 20212022 Budget; and
Resolution 202298 of the City Council of the City of Fairfield Authorizing a Loan and Budget Transfer from the Intergovernmental Loan Fund to Landscaping and Lighting Maintenance District No. 11 – Paradise Valley North for Increased Landscape Maintenance and Consulting Services through Fiscal Year 20222023 and Authorizing an Update to the Fiscal Year 2021 2022 Budget; and
Resolution 202299 of the City Council of the City of Fairfield Authorizing a Loan and Budget Transfer from the Intergovernmental Loan Fund to Landscaping and Lighting Maintenance District No. 13 – North Cordelia for Increased Landscape Maintenance and Consulting Services through Fiscal Year 20222023 and Authorizing an Update to the Fiscal Year 20212022 Budget Recommended Action
Receive report, open discussion, adopt resolutions or provide direction to staff.

Funding Source
Packet Page 4 of 338

CITY OF FAIRFIELDFAIRFIELD CITY COUNCILREGULAR MEETINGTUESDAY, MAY 3, 2022; 6:00 PMCOUNCIL CHAMBER, 1000 WEBSTER STREET, FAIRFIELD,CA 94533 OR VIA ZOOMAGENDANotice to PublicThe City of Fairfield is committed to providing meeting facilities that areaccessible to persons with disabilities and/or have language barriers. To requestmeeting materials in alternative formats, or to request a sign languageinterpreter, realtime captioning, or other accommodation, please contact theCity Clerk's Office, at least 72 hours in advance of the meeting at (707) 4287400.For individuals with hearing or speaking limitations, dial 711 or (800) 7352922(English). For Spanish, Tagalog or other language, please dial (800) 8553000and provide the communication assistant with the following City telephonenumber: (707) 3994010.Pursuant to AB 361 regarding public meetings held during the COVID19 emergency,councilmembers may attend via teleconference. Members of the public can observe the meeting onComcast Cable Channel 26, ATT UVerse 99 and webstreamed live at www.youtube.com/user/FFCATV/live.Members of the public may join via Zoom at https://fairfieldca.zoom.us/j/84183030545?pwd=Wlh0NktTbTl3c0RyeVp6T1ZQMkNuZz09 or by phone: (669) 9006833 Webinar ID: 8418303 0545 Passcode: 7074287400CALL TO ORDER 6:00 PMROLL CALLCouncilmember Pam Bertani Councilmember Cat MoyCouncilmember Doriss PanduroCouncilmemberChuck TimmCouncilmember Scott Tonnesen ViceMayor Rick VaccaroMayor Harry PriceINVOCATION Richard West, Liberty Christian ChurchPLEDGE OF ALLEGIANCECOUNCIL REPORTSCITY MANAGER REPORTCITY ATTORNEY REPORTCITY CLERK REPORTPRESENTATIONS1.Employee Recognition CeremonyContact:Farbod Pirouzmand, (707) 4287397a2.City Manager Commendation AwardsContact:Farbod Pirouzmand, (707) 4287397a3.Woman of the Year Proclamation to Dawn La BarContact:Karen L. Rees, (707) 4287767a4.Public Service Recognition Week ProclamationContact:Karen L. Rees, (707) 4287767a5.Proclamation Declaring May 1 May 7, 2022 as the 53rd Annual Professional Municipal Clerk'sWeekContact:Karen L. Rees, (707) 4287767aPUBLIC COMMENTS PUBLIC COMMENTSPersons wishing to address the City Council on subjects not on the agenda but within the jurisdictionof the council may do so at this time. The council cannot discuss or take action on matters not on theagenda for this meeting, but councilmembers may briefly respond to statements made or questionsraised by the public, ask for clarification from staff, refer the matter to staff, request staff to report backto the council at a subsequent meeting, or place the matter on a future agenda. To speak on anagenda item please use the “raise your hand” feature or press *9 on your phone. Speakers arelimited to three minutes per item.CONSENT CALENDARAll matters listed on the Consent Calendar are to be approved with one motion unless a member ofthe City Council or the public requests that separate action be taken on a specific item.6.Minute Action Approving Mayor's Appointment to the Solano County Mosquito AbatementDistrict Board of TrusteesRecommended ActionApprove appointment.Funding SourceN/AContact:Karen Rees, (707) 4287767a7.Second Reading and Adoption of Ordinance 202208 of the City Council of the City of FairfieldAmending Chapter 25, Article I, Section 25.12.3 of the Fairfield Municipal Code, Also Known asthe City of Fairfield Zoning Ordinance and Zoning Map, Rezoning Approximately .68Acres atthe Northeast Corner of Pennsylvania Avenue and Brighton Drive (APN: 0034022380) fromResidential LowMedium: 6 (RLM:6) to Residential LowMedium (RLM)Recommended ActionProvide second reading and adopt Ordinance 202208.Funding SourceN/AContact:Meily M. Sheehan, (707) 4287474a8.Resolution 202290 of the City Council of the City of Fairfield Reconsidering and AuthorizingPublic Meetings to be Held Via Teleconferencing Pursuant to Government Code Section54953(e) and Making Findings and Determinations Regarding the SameRecommended ActionAdopt resolution.Funding SourceN/AContact:Amber Alexander, (707) 4287402a9.Resolution 202291 of the City Council of the City of Fairfield Authorizing Acceptance of FY20212022 Low Carbon Transit Operations Program Grant Allocations for Electric InfrastructureUpgrades at the Fairfield Corporation YardRecommended ActionAdopt resolution.Funding SourceN/AContact:April Cobb, (707) 4343809a10.Resolution 202292 of the City Council of the City of Fairfield Authorizing Execution of theImprovement Agreement for the Canon Station – Zone II Pump StationRecommended ActionAdopt resolution.Funding SourceN/AContact:Alvin Lei, (707) 4287476a11.Resolution 202293 of the City Council of the City of Fairfield Approving the Plans andSpecifications and Awarding a Contract to First Serve Production, Inc. for the Allan WittCommunity Park Tennis Courts Resurfacing Maintenance Project and Updating the Fiscal Year2021/2022 BudgetRecommended ActionAdopt resolution.Funding Source$419,545; Parks Capital Projects FundContact:Caroline Vedder, (707) 4287484a12.Resolution 202294 of the City Council of the City of Fairfield Approving the Report of theAdvisory Board for Calendar Year 2021 and Proposed Budget for Calendar Year 2022 inConnection with the North Texas Street Business Improvement District; andResolution 202295 of the City Council of the City of Fairfield Declaring Intention to Levy anAssessment Against Businesses within the North Texas Street Business Improvement Districtfor Calendar Year 2022 and Setting a Time and Place for Hearing Objections TheretoRecommended ActionAdopt resolutions.Funding SourceN/AContact:Dwayne Dalman, (707) 4287649aNEW BUSINESS13.Minute Action Approving Mayor's Appointments to the Youth CommissionRecommended ActionApprove appointments. Perform oath of office.Funding SourceN/AContact:Karen Rees, (707) 4287767a14.Resolution 202296 of the City Council of the City of Fairfield Approving a Memorandum ofUnderstanding with First 5 Solano Children and Families Commission for the Establishment ofa First 5 Center in FairfieldRecommended ActionAdopt resolution.Funding SourceN/AContact:David Gassaway, (707) 4287400a15.Resolution 202297 of the City Council of the City of Fairfield Authorizing a Loan and BudgetTransfer from the Intergovernmental Loan Fund to Landscaping and Lighting MaintenanceDistrict No. 7 – Rolling Hills for Increased Landscape Maintenance and Consulting Servicesthrough Fiscal Year 20222023 and Authorizing an Update to the Fiscal Year 20212022Budget; andResolution 202298 of the City Council of the City of Fairfield Authorizing a Loan and BudgetTransfer from the Intergovernmental Loan Fund to Landscaping and Lighting MaintenanceDistrict No. 11 – Paradise Valley North for Increased Landscape Maintenance and ConsultingServices through Fiscal Year 20222023 and Authorizing an Update to the Fiscal Year 20212022 Budget; andResolution 202299 of the City Council of the City of Fairfield Authorizing a Loan and BudgetTransfer from the Intergovernmental Loan Fund to Landscaping and Lighting MaintenanceDistrict No. 13 – North Cordelia for Increased Landscape Maintenance and Consulting Servicesthrough Fiscal Year 20222023 and Authorizing an Update to the Fiscal Year 20212022 BudgetRecommended Action Receive report, open discussion, adopt resolutions or provide direction to staff.

Funding Source
$50,000; General Fund; and $736,000; Intergovernmental Loan Fund Contact:Chris Lewis, (707) 4287089
a

16.Continued Resolution 202287 of the City Council of the City of Fairfield Approving the City's Fiscal Year 202021 Annual Comprehensive Financial Report and the Federal Awards Report (Single Audit)
Recommended Action
Adopt resolution.

Funding Source
N/A
Contact:Juan Gomez, (707) 4287495
a

17.Resolution 2022100 of the City Council of the City of Fairfield Adopting a Successor Memorandum of Understanding Between the City and the Fairfield Employees’ Association Recommended Action
Adopt resolution.

Funding Source
$7,978,044; $4,191,388 General Fund; $3,786,656 Enterprise and Internal Service Funds Contact:Farbod Pirouzmand, (707) 4287397
a

18.Resolution 2022101 of the City Council of the City of Fairfield Adopting a Successor Memorandum of Understanding Between the City and the Fairfield General Management Association
Recommended Action
Adopt resolution.

Funding Source
$5,194,593; $2,665,631 General Fund; $2,528,962 Enterprise and Internal Service Funds Contact:Farbod Pirouzmand, (707) 4287397
a

19.Resolution 2022102 of the City Council of the City of Fairfield Adopting a Successor Memorandum of Understanding Between the City and the Fairfield Police Management Association
Recommended Action
Adopt resolution.

Funding Source
$2,179,068; General Fund
Contact:Farbod Pirouzmand, (707) 4287397
a

20.Resolution 2022103 of the City Council of the City of Fairfield Adopting a Successor Memorandum of Understanding Between the City and the Fairfield Police Officers’ Association Recommended Action
Adopt resolution.

Funding Source
$4,842,539; General Fund
Contact:Farbod Pirouzmand, (707) 4287397
a

21.Discussion Regarding Project Labor Agreements for CityOwned Capital Improvement Projects Packet Page 5 of 338

CITY OF FAIRFIELDFAIRFIELD CITY COUNCILREGULAR MEETINGTUESDAY, MAY 3, 2022; 6:00 PMCOUNCIL CHAMBER, 1000 WEBSTER STREET, FAIRFIELD,CA 94533 OR VIA ZOOMAGENDANotice to PublicThe City of Fairfield is committed to providing meeting facilities that areaccessible to persons with disabilities and/or have language barriers. To requestmeeting materials in alternative formats, or to request a sign languageinterpreter, realtime captioning, or other accommodation, please contact theCity Clerk's Office, at least 72 hours in advance of the meeting at (707) 4287400.For individuals with hearing or speaking limitations, dial 711 or (800) 7352922(English). For Spanish, Tagalog or other language, please dial (800) 8553000and provide the communication assistant with the following City telephonenumber: (707) 3994010.Pursuant to AB 361 regarding public meetings held during the COVID19 emergency,councilmembers may attend via teleconference. Members of the public can observe the meeting onComcast Cable Channel 26, ATT UVerse 99 and webstreamed live at www.youtube.com/user/FFCATV/live.Members of the public may join via Zoom at https://fairfieldca.zoom.us/j/84183030545?pwd=Wlh0NktTbTl3c0RyeVp6T1ZQMkNuZz09 or by phone: (669) 9006833 Webinar ID: 8418303 0545 Passcode: 7074287400CALL TO ORDER 6:00 PMROLL CALLCouncilmember Pam Bertani Councilmember Cat MoyCouncilmember Doriss PanduroCouncilmemberChuck TimmCouncilmember Scott Tonnesen ViceMayor Rick VaccaroMayor Harry PriceINVOCATION Richard West, Liberty Christian ChurchPLEDGE OF ALLEGIANCECOUNCIL REPORTSCITY MANAGER REPORTCITY ATTORNEY REPORTCITY CLERK REPORTPRESENTATIONS1.Employee Recognition CeremonyContact:Farbod Pirouzmand, (707) 4287397a2.City Manager Commendation AwardsContact:Farbod Pirouzmand, (707) 4287397a3.Woman of the Year Proclamation to Dawn La BarContact:Karen L. Rees, (707) 4287767a4.Public Service Recognition Week ProclamationContact:Karen L. Rees, (707) 4287767a5.Proclamation Declaring May 1 May 7, 2022 as the 53rd Annual Professional Municipal Clerk'sWeekContact:Karen L. Rees, (707) 4287767aPUBLIC COMMENTS PUBLIC COMMENTSPersons wishing to address the City Council on subjects not on the agenda but within the jurisdictionof the council may do so at this time. The council cannot discuss or take action on matters not on theagenda for this meeting, but councilmembers may briefly respond to statements made or questionsraised by the public, ask for clarification from staff, refer the matter to staff, request staff to report backto the council at a subsequent meeting, or place the matter on a future agenda. To speak on anagenda item please use the “raise your hand” feature or press *9 on your phone. Speakers arelimited to three minutes per item.CONSENT CALENDARAll matters listed on the Consent Calendar are to be approved with one motion unless a member ofthe City Council or the public requests that separate action be taken on a specific item.6.Minute Action Approving Mayor's Appointment to the Solano County Mosquito AbatementDistrict Board of TrusteesRecommended ActionApprove appointment.Funding SourceN/AContact:Karen Rees, (707) 4287767a7.Second Reading and Adoption of Ordinance 202208 of the City Council of the City of FairfieldAmending Chapter 25, Article I, Section 25.12.3 of the Fairfield Municipal Code, Also Known asthe City of Fairfield Zoning Ordinance and Zoning Map, Rezoning Approximately .68Acres atthe Northeast Corner of Pennsylvania Avenue and Brighton Drive (APN: 0034022380) fromResidential LowMedium: 6 (RLM:6) to Residential LowMedium (RLM)Recommended ActionProvide second reading and adopt Ordinance 202208.Funding SourceN/AContact:Meily M. Sheehan, (707) 4287474a8.Resolution 202290 of the City Council of the City of Fairfield Reconsidering and AuthorizingPublic Meetings to be Held Via Teleconferencing Pursuant to Government Code Section54953(e) and Making Findings and Determinations Regarding the SameRecommended ActionAdopt resolution.Funding SourceN/AContact:Amber Alexander, (707) 4287402a9.Resolution 202291 of the City Council of the City of Fairfield Authorizing Acceptance of FY20212022 Low Carbon Transit Operations Program Grant Allocations for Electric InfrastructureUpgrades at the Fairfield Corporation YardRecommended ActionAdopt resolution.Funding SourceN/AContact:April Cobb, (707) 4343809a10.Resolution 202292 of the City Council of the City of Fairfield Authorizing Execution of theImprovement Agreement for the Canon Station – Zone II Pump StationRecommended ActionAdopt resolution.Funding SourceN/AContact:Alvin Lei, (707) 4287476a11.Resolution 202293 of the City Council of the City of Fairfield Approving the Plans andSpecifications and Awarding a Contract to First Serve Production, Inc. for the Allan WittCommunity Park Tennis Courts Resurfacing Maintenance Project and Updating the Fiscal Year2021/2022 BudgetRecommended ActionAdopt resolution.Funding Source$419,545; Parks Capital Projects FundContact:Caroline Vedder, (707) 4287484a12.Resolution 202294 of the City Council of the City of Fairfield Approving the Report of theAdvisory Board for Calendar Year 2021 and Proposed Budget for Calendar Year 2022 inConnection with the North Texas Street Business Improvement District; andResolution 202295 of the City Council of the City of Fairfield Declaring Intention to Levy anAssessment Against Businesses within the North Texas Street Business Improvement Districtfor Calendar Year 2022 and Setting a Time and Place for Hearing Objections TheretoRecommended ActionAdopt resolutions.Funding SourceN/AContact:Dwayne Dalman, (707) 4287649aNEW BUSINESS13.Minute Action Approving Mayor's Appointments to the Youth CommissionRecommended ActionApprove appointments. Perform oath of office.Funding SourceN/AContact:Karen Rees, (707) 4287767a14.Resolution 202296 of the City Council of the City of Fairfield Approving a Memorandum ofUnderstanding with First 5 Solano Children and Families Commission for the Establishment ofa First 5 Center in FairfieldRecommended ActionAdopt resolution.Funding SourceN/AContact:David Gassaway, (707) 4287400a15.Resolution 202297 of the City Council of the City of Fairfield Authorizing a Loan and BudgetTransfer from the Intergovernmental Loan Fund to Landscaping and Lighting MaintenanceDistrict No. 7 – Rolling Hills for Increased Landscape Maintenance and Consulting Servicesthrough Fiscal Year 20222023 and Authorizing an Update to the Fiscal Year 20212022Budget; andResolution 202298 of the City Council of the City of Fairfield Authorizing a Loan and BudgetTransfer from the Intergovernmental Loan Fund to Landscaping and Lighting MaintenanceDistrict No. 11 – Paradise Valley North for Increased Landscape Maintenance and ConsultingServices through Fiscal Year 20222023 and Authorizing an Update to the Fiscal Year 20212022 Budget; andResolution 202299 of the City Council of the City of Fairfield Authorizing a Loan and BudgetTransfer from the Intergovernmental Loan Fund to Landscaping and Lighting MaintenanceDistrict No. 13 – North Cordelia for Increased Landscape Maintenance and Consulting Servicesthrough Fiscal Year 20222023 and Authorizing an Update to the Fiscal Year 20212022 BudgetRecommended ActionReceive report, open discussion, adopt resolutions or provide direction to staff.Funding Source$50,000; General Fund; and $736,000; Intergovernmental Loan FundContact:Chris Lewis, (707) 4287089a16.Continued Resolution 202287 of the City Council of the City of Fairfield Approving the City'sFiscal Year 202021 Annual Comprehensive Financial Report and the Federal Awards Report(Single Audit)Recommended ActionAdopt resolution.Funding SourceN/AContact:Juan Gomez, (707) 4287495a17.Resolution 2022100 of the City Council of the City of Fairfield Adopting a SuccessorMemorandum of Understanding Between the City and the Fairfield Employees’ AssociationRecommended ActionAdopt resolution.Funding Source$7,978,044; $4,191,388 General Fund; $3,786,656 Enterprise and Internal Service FundsContact:Farbod Pirouzmand, (707) 4287397a18.Resolution 2022101 of the City Council of the City of Fairfield Adopting a SuccessorMemorandum of Understanding Between the City and the Fairfield General ManagementAssociationRecommended ActionAdopt resolution.Funding Source$5,194,593; $2,665,631 General Fund; $2,528,962 Enterprise and Internal Service FundsContact:Farbod Pirouzmand, (707) 4287397a19.Resolution 2022102 of the City Council of the City of Fairfield Adopting a SuccessorMemorandum of Understanding Between the City and the Fairfield Police ManagementAssociationRecommended ActionAdopt resolution.Funding Source$2,179,068; General FundContact:Farbod Pirouzmand, (707) 4287397a20.Resolution 2022103 of the City Council of the City of Fairfield Adopting a SuccessorMemorandum of Understanding Between the City and the Fairfield Police Officers’ AssociationRecommended ActionAdopt resolution.Funding Source$4,842,539; General Fund Contact:Farbod Pirouzmand, (707) 4287397
a

21.Discussion Regarding Project Labor Agreements for CityOwned Capital Improvement Projects Recommended Action
Receive report, open discussion, and provide direction to staff.

Funding Source
N/A
Contact:Anna Guiles, (707) 4287399
a
ADJOURN TO TUESDAY, MAY 17, 2022, 6:00 P.M., COUNCIL CHAMBER OR VIA ZOOM.

Any disclosable public records related to an open session item on a regular meeting agenda and distributed by the City of Fairfield to all or a majority of the Fairfield City Council less than 72 hours prior to that meeting are available for public inspection at City Hall, in the 4th floor lobby, 1000 Webster Street, Fairfield, California during normal business hours.

PUBLIC NOTIFICATION
I, Amber Alexander, Deputy City Clerk, do hereby certify that I have caused a true copy of the above notice and agenda to be delivered to each of the members of the Fairfield City Council, at the time and in the manner prescribed by law and that this agenda was posted at City Hall, 1000 Webster Street, Fairfield, California on April 27, 2022.

Packet Page 6 of 338

Agenda Item No: 6.

AGENDA REPORT
DATE:May 3, 2022
TO:Mayor and City Council
FROM:David Gassaway, Interim City Manager
SUBJECT:Minute Action Approving Mayor's Appointment to the Solano County Mosquito Abatement District Board of Trustees
RECOMMENDED ACTION
Approve appointment.

STATEMENT OF ISSUE
The City Council is being asked to approve the appointments as follows:

City of Fairfield Appointed Board Trustee for the Solano County Mosquito Abatement District Board of Trustees
Unexpired term with an expiration date of December 31, 2023

1. Paul Wade

DISCUSSION
One seat is available on the Solano County Mosquito Abatement District Board of Trustees for an unexpired term to December 31, 2023.

Councilmembers Panduro and Moy interviewed two applicants on April 18, 2022. One applicant was recommended for appointment and the recommendation was submitted to Mayor Harry Price for consideration.

Mayor Price has agreed with the recommendations provided today.

FINANCIAL IMPACT
N/A
PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
N/A
Packet Page 7 of 338

Agenda Item No: 6.AGENDA REPORTDATE:May 3, 2022 TO:Mayor and City CouncilFROM:David Gassaway, Interim City ManagerSUBJECT:Minute Action Approving Mayor's Appointment to the Solano County MosquitoAbatement District Board of TrusteesRECOMMENDED ACTIONApprove appointment.STATEMENT OF ISSUEThe City Council is being asked to approve the appointments as follows:City of Fairfield Appointed Board Trustee for the Solano County Mosquito Abatement DistrictBoard of TrusteesUnexpired term with an expiration date of December 31, 20231. Paul WadeDISCUSSIONOne seat is available on the Solano County Mosquito Abatement District Board of Trustees for anunexpired term to December 31, 2023.Councilmembers Panduro and Moy interviewed two applicants on April 18, 2022. One applicant wasrecommended for appointment and the recommendation was submitted to Mayor Harry Price forconsideration. Mayor Price has agreed with the recommendations provided today.FINANCIAL IMPACTN/A PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
N/A
ALTERNATIVE ACTION
The council could choose not to approve the mayor’s appointment, thereby leaving a vacancy.

STAFF CONTACT
Amber Alexander, Deputy City Clerk
(707) 4287402
[email protected]
COORDINATED WITH
N/A
REVIEWERS:

Reviewer Action Date
Alexander, Amber Approved 4/22/2022 8:55 AM
Packet Page 8 of 338

Agenda Item No: 7.

AGENDA REPORT
DATE:May 3, 2022
TO:Mayor and City Council
FROM:David Gassaway, Interim City Manager
SUBJECT:Second Reading and Adoption of Ordinance 202208 of the City Council of the City of Fairfield Amending Chapter 25, Article I, Section 25.12.3 of the Fairfield Municipal Code, Also Known as the City of Fairfield Zoning Ordinance and Zoning Map, Rezoning Approximately .68Acres at the Northeast Corner of Pennsylvania Avenue and Brighton Drive (APN: 0034022380) from Residential LowMedium: 6 (RLM:6) to Residential LowMedium (RLM)
RECOMMENDED ACTION
Provide second reading and adopt Ordinance 202208.

STATEMENT OF ISSUE
Discovery Builders, Inc. requests to amend the Zoning Ordinance to accommodate their development request for a new 6unit subdivision, Brighton Place.

DISCUSSION
Background:On March 9, 2022, the Planning Commission approved Resolution PC202203 approving the Tentative Subdivision Map and Development Review applications for Discovery Builders, Inc. to construct a 6unit subdivision consisting of 2 attached duets and 2 detached homes at the northeast corner of Pennsylvania Avenue and Brighton Drive. During the commission hearing, the commissioners unanimously voted to include additional project conditions to support the general welfare of the community. The conditions included enhanced bioretention basins, adequate waste toterstyle cart space, 24inch box nurserysized trees, a community fence/wall plan, and a homeowner's or private association to be formed. In addition to the abovementioned entitlements, Resolution PC202203 recommends City Council approve the proposed zone change.

Zone Change Analysis: The applicant has filed for a zone change to rezone the subject parcel from a Residential LowMedium: 6 (RLM:6) designation to a Residential LowMedium (RLM) designation. The request is required to facilitate the project’s proposed density of 6 dwelling units.

For the purpose of calculating residential density, the City’s Zoning Ordinance states that Gross Developable Acreage shall be considered. Gross Developable Acreage includes the project site and areas of the rightofway extending to the centerline of local and collector streets. The proposed Packet Page 9 of 338

The project site’s current RLM:6 zoning designation allows for the development of 4.5 to 5 dwelling units per acre. Therefore, the project site may currently develop a total of 5 dwelling units. The RLM zoning designation allows for the development of 4.5 to 8 dwelling units per acre. Under an RLM zoning designation, the project site may develop up to 7 dwelling units and the project proposal would be consistent with density and development regulations.

Environmental Analysis:The proposed zone change is not subject to review under the California Environmental Quality Act (CEQA), pursuant to Senate Bill SB10, Government Code Section 65913.5, which authorizes a local government to adopt an ordinance to zone any parcel for up to 10 units of residential density per parcel if the parcel is an urban infill site. Section 65913.5(a)(4)(A) specifies that an ordinance adopted under these provisions is not a “project” for purposes of the CEQA.

FINANCIAL IMPACT
N/A
PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
Council held a public hearing on April 19, 2022, of which a notice was published in the Daily Republic newspaper on April 8, 2022, and mailed to all persons who own property within 500 feet of the subject property.

On March 9, 2022, the commission held a public hearing that was duly noticed in the Daily Republic newspaper on February 27, 2022, and mailed to all persons who own property within 500 feet of the subject property. The commission unanimously approved Resolution PC202203 which approves the project’s Tentative Subdivision Map and Minor Development review and recommends the council approve the proposed Zone Change request.

The City has received no questions or comments regarding this proposal at the time of this writing.

ALTERNATIVE ACTION
The council may choose to deny the zone change request and not proceed with the corresponding ordinance. In this case, the Brighton Place project, as currently proposed, would not proceed.

STAFF CONTACT
The council may choose to deny the zone change request and not proceed with the corresponding ordinance. In this case, the Brighton Place project, as currently proposed, would not proceed.

COORDINATED WITH
City Attorney's Office, Public Works Department
ATTACHMENTS:

Description
Proposed Ordinance
Exhibit A Zoning Exhibit
REVIEWERS:

Reviewer Action Date
Feinstein, David Approved 4/19/2022 8:24 PM
Packet Page 10 of 338

Agenda Item No: 7.AGENDA REPORTDATE:May 3, 2022 TO:Mayor and City CouncilFROM:David Gassaway, Interim City ManagerSUBJECT:Second Reading and Adoption of Ordinance 202208 of the City Council of the City ofFairfield Amending Chapter 25, Article I, Section 25.12.3 of the Fairfield MunicipalCode, Also Known as the City of Fairfield Zoning Ordinance and Zoning Map, RezoningApproximately .68Acres at the Northeast Corner of Pennsylvania Avenue and BrightonDrive (APN: 0034022380) from Residential LowMedium: 6 (RLM:6) to ResidentialLowMedium (RLM)RECOMMENDED ACTIONProvide second reading and adopt Ordinance 202208.STATEMENT OF ISSUEDiscovery Builders, Inc. requests to amend the Zoning Ordinance to accommodate their developmentrequest for a new 6unit subdivision, Brighton Place.DISCUSSIONBackground:On March 9, 2022, the Planning Commission approved Resolution PC202203approving the Tentative Subdivision Map and Development Review applications for Discovery Builders,Inc. to construct a 6unit subdivision consisting of 2 attached duets and 2 detached homes at thenortheast corner of Pennsylvania Avenue and Brighton Drive. During the commission hearing, thecommissioners unanimously voted to include additional project conditions to support the generalwelfare of the community. The conditions included enhanced bioretention basins, adequate wastetoterstyle cart space, 24inch box nurserysized trees, a community fence/wall plan, and a homeowner'sor private association to be formed. In addition to the abovementioned entitlements, ResolutionPC202203 recommends City Council approve the proposed zone change. Zone Change Analysis: The applicant has filed for a zone change to rezone the subject parcel from aResidential LowMedium: 6 (RLM:6) designation to a Residential LowMedium (RLM) designation. Therequest is required to facilitate the project’s proposed density of 6 dwelling units. For the purpose of calculating residential density, the City’s Zoning Ordinance states that GrossDevelopable Acreage shall be considered. Gross Developable Acreage includes the project site andareas of the rightofway extending to the centerline of local and collector streets. The proposedproject’s Gross Developable Acreage is .98acres. The project site’s current RLM:6 zoning designation allows for the development of 4.5 to 5 dwelling unitsper acre. Therefore, the project site may currently develop a total of 5 dwelling units. The RLM zoningdesignation allows for the development of 4.5 to 8 dwelling units per acre. Under an RLM zoningdesignation, the project site may develop up to 7 dwelling units and the project proposal would beconsistent with density and development regulations.Environmental Analysis:The proposed zone change is not subject to review under the CaliforniaEnvironmental Quality Act (CEQA), pursuant to Senate Bill SB10, Government Code Section 65913.5,which authorizes a local government to adopt an ordinance to zone any parcel for up to 10 units ofresidential density per parcel if the parcel is an urban infill site. Section 65913.5(a)(4)(A) specifies thatan ordinance adopted under these provisions is not a “project” for purposes of the CEQA.FINANCIAL IMPACTN/APUBLIC CONTACT/ADVISORY BODY RECOMMENDATIONCouncil held a public hearing on April 19, 2022, of which a notice was published in the Daily Republicnewspaper on April 8, 2022, and mailed to all persons who own property within 500 feet of the subjectproperty.On March 9, 2022, the commission held a public hearing that was duly noticed in the Daily Republicnewspaper on February 27, 2022, and mailed to all persons who own property within 500 feet of thesubject property. The commission unanimously approved Resolution PC202203 which approves theproject’s Tentative Subdivision Map and Minor Development review and recommends the councilapprove the proposed Zone Change request. The City has received no questions or comments regarding this proposal at the time of this writing.ALTERNATIVE ACTIONThe council may choose to deny the zone change request and not proceed with the correspondingordinance. In this case, the Brighton Place project, as currently proposed, would not proceed.STAFF CONTACTThe council may choose to deny the zone change request and not proceed with the correspondingordinance. In this case, the Brighton Place project, as currently proposed, would not proceed.COORDINATED WITHCity Attorney's Office, Public Works DepartmentATTACHMENTS:DescriptionProposed OrdinanceExhibit A Zoning ExhibitREVIEWERS:

Reviewer Action Date
Feinstein, David Approved 4/19/2022 8:24 PM
Alexander, Amber Approved 4/20/2022 8:10 AM
Packet Page 11 of 338

CITY OF FAIRFIELD

ORDINANCE NO. 2022-08

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF FAIRFIELD AMENDING CHAPTER 25, ARTICLE I, SECTION 25.12.3 OF THE FAIRFIELD MUNICIPAL CODE, ALSO KNOWN AS THE CITY OF FAIRFIELD ZONING ORDINANCE AND ZONING MAP, REZONING APPROXIMATELY .68- ACRES AT THE NORTHEAST CORNER OF PENNSYLVANIA AVENUE AND BRIGHTON DRIVE (APN:
0034-022-380) FROM RESIDENTIAL LOW-MEDIUM: 6 (RLM:6) TO RESIDENTIAL LOW-MEDIUM (RLM)

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

SECTION 1. Chapter 25, Article I, Section 25.12.3 of the Fairfield Municipal Code, also known as the City of Fairfield Zoning Ordinance and Zoning Map, is hereby amended as shown on Sectional Zoning Map (ZC2021-001) attached hereto as Exhibit A.

Pursuant to Section 25.47 of the Zoning Ordinance, the City Council finds as follows:

A. The proposed amendment is consistent with the goals, policies, and actions of the General Plan. The proposed land use is consistent with the RLM General Plan land use designation and Zoning classification. Furthermore, the project is compatible with multiple General Plan objectives and policies: Objective HO 1: Provide for varied housing opportunities, in terms of type, price, amenities, neighborhood design, and location, for all income groups and family types; Objective HO 2: Encourage infill housing in developed areas of the City; Objective HO 8: Promote energy conservation. Implement state en ergy conservation standards. Encourage energy-conserving development patterns; Policy LU

1.1: Only allow development that is consistent with the Land Use Diagram and the Land Use Category definitions; Objective LU 8: Develop and maintain a pattern of residential land uses which provides for a variety and balance of densities and opportunities for a mixture of different dwelling and tenure types; Policy LU 18.1: Utilize land within the existing city limits as efficiently as possible, allowing for a wider variety of housing types and densities within the same zone district, and economical use of public services and infrastructure; Objective LU 18: Encourage infill development and compact growth; Objective UD 4: Ensure high standards of quality in development; Objective UD 6: Utilize extensive landscaping to beautify Fairfield's urban areas.

B. The proposed amendment would not be detrimental to the public interest, health, safety, convenience, or welfare of the City. The proposed amendment will not be detrimental to the general welfare of the public, as it facilitates the proposed Brighton Place subdivision (Project). The Project is an infill site within an existing residential neighborhood and will be integrated into the setting cohesively. All necessary utilities and services such as water, sewer, and power are provided to the site. Additionally, the project will be developed to specific Zoning Ordinance standards and conditions to ensure that the architectural Packet Page 12 of 338Attachment 1 Page 1 of 3

ORD. NO. 2022-08

Page 2 ends

design, site improvements, and landscaping are compatible with surrounding developments. Together the design features and Project conditions will ensure that the Project will not cause this residential area to decline economically, physically, or visually.

C. The site is physically suitable (including, but not limited to access, provision of utilities, compatibility with adjoining land uses, and absence of physical constraints) for the requested zoning designations and anticipated land uses/developments. The site is physically suitable for the proposed Project. As designed and conditioned the Project consists of proposed streets and all necessary utilities and services such as water, sewer, and power. The proposed low-medium density development is appropriate near existing residential and public services in the vicinity.

D. The proposed amendment is in compliance with the provisions of the California Environmental Quality Act (CEQA). The proposed amendment is not subject to review under CEQA, pursuant to Government Code Section 65913.5 , which authorizes a local government to adopt an ordinance to zone any parcel for up to 10 units of residential density per parcel if the parcel is an urban infill site. Section 65913.5(a)(4)(A) specifies that an ordinance adopted under these provisions is not a “project” for purposes of the CEQA.

Further, the proposed project is exempt under Class 32, which consists of projects characterized as “in-fill” development that meet the conditions described in Section 15332 (In-Fill Development Projects) of the CEQA Guidelines. Class 32 projects have the following characteristics: 1) the project is consistent with the applicable general plan designation and all applicable general plan policies as well as with applicable zoning designation and regulations; 2) the proposed development occurs within city limits on a project site of no more than five acres substantially surrounded by urban uses; 3) the project site has no value as habitat for endangered, rare or threatened species; and 4) approval of the project would not result in any significant effects relating to traffic, noise, air quality, or water quality.

SECTION 2. Pursuant to Senate Bill 10 (SB-10), codified at Section 65913.5 of the Government Code, the council finds as follows:

A. This ordinance is adopted pursuant to Government Code Section 65913.5.

B. The increased density authorized by the proposed amendment is consistent with the City’s obligation under Government Code Section 8899.50 to administer its activities and programs relating to housing and community development in a manner to affirmatively further fair housing. The proposed project, if approved, rezones the subject site from RLM:6 to RLM. The RLM zoning designation allows for a higher density per acre development. At an RLM designation, the project site supports a variety of housing product types, such as the proposed attached single-family units. Therefore, the proposed amendment is consistent with the City’s obligation to affirmatively further fair housing by addressing disparities in housing needs and in access to opportunity.

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ORD. NO. 2022-08

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C. The proposed amendment would zone a parcel for up to 10 units of residential density per parcel, at a height specified in the ordinance. The proposed amendment rezones the subject site to RLM, where a density of 8 units an acre is permitted by right. Consistent with the City’s Zoning Ordinance development regulations for the RLM district, the site would be permitted to be developed at a maximum of 35 feet in height consistent with the City’s Zoning Ordinance development regulations.

D. The project site is located in either a transit-rich area or an urban infill site, as defined by SB-10. The project site is located in an urban infill site, in that it is within the City’s jurisdiction, which is designated as an urbanized area by the U.S. Census Bureau, and at least 75% of the site perimeter is adjoined by urban uses.

SECTION 3. A summary of this ordinance shall be printed and published twice in the Daily Republic, a newspaper of general circulation, printed and published in the City of Fairfield.

SECTION 4. This ordinance shall be effective 30 days following its adoption by the council. A summary of this ordinance shall, within 15 days after passage, be published in accordance with Section 36933 of the Government Code of the State of California with the names of the councilmembers voting for and against it.

INTRODUCED at a regular meeting of the City Council of the City of Fairfield on the 19th day of April, 2022, and

PASSED AND ADOPTED this 3rd day of May 2022, by the following vote:

AYES: Councilmembers: PRICE / BERTANI / MOY / PANDURO / TIMM / TONNESEN / VACCARO

NOES: Councilmembers:

ABSENT: Councilmembers:

ABSTAIN: Councilmembers:

MAYOR

ATTEST:

_________________________

CITY CLERK
Packet Page 14 of 338Attachment 1 Page 3 of 3

EB I80WB I80PENNSYLVANIA AVI 80TABOR AV NOTTINGHAM DRCAMBRIDGE DRAIRBASE PKWY OFF

CUNNINGHAM DRBRISTOL LNFLINT WYBUCKINGHAM DRTIPTON WYALASKA AV

CANTERBURY DR

AIR BASE PKWY

OXFORD DRW ATERMAN BLESSEX DR

KENT WY

AVON WY

DEL PRADO CIR

BRIGHTON DR

BRETON DR

BRIGHTON CTVIENNA CT

AIR BASE PKWY
AIRBASE PKWY OFFI 80RLM:6
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CR-HRLM-H
±
LEGEND
Zone Designations
AG
CC
CD
CDC
CM
CN
CO
CR
CS
CT
IBP
IG
IL
ITP
OSC
PF
REC
RVL
RL
RLM
RM
RH
RVH
None
Overlays
-NC
-PD
-P1
-H
Agriculture
Comm unity Commercial
Downtown C omm ercial
Downtown C omm ercial Core
Mixed Com mercial
Neighborhood C omm ercial
Office Comm ercial
Regional Commercial
Service Commercial
Thoroughfare Com mercial
Industrial Business Park
General Industrial
Limited Industrial
Industrial Technology Park
Open Space Conservation
Public Facilities
Recreation
Very Low Density Residential
Low D ensity Residential
Low-Medium Density Residential
Medium D ensity Residential
High Density Residential
Very High Density Residential
Not in City / No Pre-Zoning
North C ordelia Overlay
Proposed Development Overlay
Downtown Parking Overlay
Hillside Overlay
Pro je ct Site . Zone Chan ge: RL M:6 to RL M
Parcels
Zo ning
ZONING EXHIBITBrighton Place(ZC2021-001)(TS2021-00)(MD20 21-009)(ER2021-030) Packet Page 15 of 338Attachment 2 Page 1 of 1

Agenda Item No: 8.

AGENDA REPORT
DATE:May 3, 2022
TO:Mayor and City Council
FROM:David Gassaway, Interim City Manager
SUBJECT:Resolution 202290 of the City Council of the City of Fairfield Reconsidering and Authorizing Public Meetings to be Held Via Teleconferencing Pursuant to Government Code Section 54953(e) and Making Findings and Determinations Regarding the Same RECOMMENDED ACTION
Adopt resolution.

STATEMENT OF ISSUE
Government Code 54953(e) is new legislation that amends the Brown Act to allow local agencies to meet remotely during declared emergencies under certain conditions. The code requires that the City Council reconsider and reauthorize these provisions every 30 days following initial authorization.

DISCUSSION
On October 5, 2021, the council adopted provisions of Assembly Bill (AB) 361, urgency legislation that amends the Brown Act to allow local agencies to meet remotely during declared emergencies under certain conditions. AB 361 authorizes local agencies to continue meeting remotely without following the Brown Act’s standard teleconferencing provisions, including the requirement that meetings be conducted in physical locations if the meeting is held during a state of emergency proclaimed by the Governor and either of the following applies:

1. State or local officials have imposed or recommended measures to promote social distancing; or

2. The agency has already determined whether, as a result of the emergency, meeting in person would present imminent risks to the health or safety of the attendee.

Council has utilized teleconferencing options throughout the pandemic, including remote appearances by Councilmembers and public comments from citizens via Zoom, email, or teleconference.

AB requires the council to reconsider the circumstances of the state of emergency every 30 days following the adoption of the law and make specific findings that either of the following cases exists:

1. The state of emergency continues to directly impact the ability of the members to meet in person Packet Page 16 of 338

Agenda Item No: 8.AGENDA REPORTDATE:May 3, 2022 TO:Mayor and City CouncilFROM:David Gassaway, Interim City ManagerSUBJECT:Resolution 202290 of the City Council of the City of Fairfield Reconsidering andAuthorizing Public Meetings to be Held Via Teleconferencing Pursuant to GovernmentCode Section 54953(e) and Making Findings and Determinations Regarding the SameRECOMMENDED ACTIONAdopt resolution.STATEMENT OF ISSUEGovernment Code 54953(e) is new legislation that amends the Brown Act to allow local agencies tomeet remotely during declared emergencies under certain conditions. The code requires that the CityCouncil reconsider and reauthorize these provisions every 30 days following initial authorization.DISCUSSIONOn October 5, 2021, the council adopted provisions of Assembly Bill (AB) 361, urgency legislation thatamends the Brown Act to allow local agencies to meet remotely during declared emergencies undercertain conditions. AB 361 authorizes local agencies to continue meeting remotely without following theBrown Act’s standard teleconferencing provisions, including the requirement that meetings beconducted in physical locations if the meeting is held during a state of emergency proclaimed by theGovernor and either of the following applies:1. State or local officials have imposed or recommended measures to promote social distancing; or2. The agency has already determined whether, as a result of the emergency, meeting in person wouldpresent imminent risks to the health or safety of the attendee.Council has utilized teleconferencing options throughout the pandemic, including remote appearancesby Councilmembers and public comments from citizens via Zoom, email, or teleconference.AB requires the council to reconsider the circumstances of the state of emergency every 30 days following the adoption of the law and make specific findings that either of the following cases exists:

1. The state of emergency continues to directly impact the ability of the members to meet in person safely; or

2. State or local officials continue to impose or recommend measures to promote social distancing.

FINANCIAL IMPACT
There is little to no fiscal impact by this action. City staff is already utilizing many of the procedures for teleconferencing in recent council meetings and other meetings of the legislative bodies.

PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
None.

ALTERNATIVE ACTION
The council may choose not to reauthorize these procedures, in which case they would no longer be able to teleconference into council meetings without meeting the notice requirements for teleconferencing that existed before the State of Emergency. Public comment via remote access would also be curtailed at council meetings.

STAFF CONTACT
Amber Alexander, Deputy City Clerk
(707) 4287402
[email protected]
COORDINATED WITH
City Attorney's Office
ATTACHMENTS:

Description
Proposed Resolution
REVIEWERS:

Reviewer Action Date
Alexander, Amber Approved 4/19/2022 7:39 AM
Packet Page 17 of 338

CITY OF FAIRFIELD

RESOLUTION NO. 2022-90

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FAIRFIELD RECONSIDERING AND

AUTHORIZING PUBLIC MEETINGS TO BE HELD VIA TELECONFERENCING PURSUANT TO GOVERNMENT CODE SECTION 54953(E) AND MAKING FINDINGS AND DETERMINATIONS

REGARDING THE SAME

WHEREAS, the Fairfield City Council (the City Council) is committed to public access and participation in its meetings while balancing the need to conduct public meetings in a manner that reduces the likelihood of exposure to COVID-19; and

WHEREAS, all meetings of the City Council are open and public, as required by the Ralph M.

Brown Act (Cal. Gov. Code 54950 – 54963), so that any member of the public may attend, participate, and watch the City Council conduct its business; and

WHEREAS, pursuant to Assembly Bill 361, signed by Governor Newsom and effective on September 16, 2021, legislative bodies of local agencies may hold public meetings via teleconferencing pursuant to Government Code Section 54953(e), without complying with the requirements of Government Code Section 54953(b)(3), if the legislative body complies with certain enumerated requirements in any of the following circumstances:

1. The legislative body holds a meeting during a proclaimed state of emergency, and state or local officials have imposed or recommended measures to promote social distancing.

2. The legislative body holds a meeting during a proclaimed state of emergency for the purpose of determining, by majority vote, whether as a result of the emergency, meeting in person would present imminent risks to the health or safety of attendees.

3. The legislative body holds a meeting during a proclaimed state of emergency and has determined, by majority vote, that, as a result of the emergency, meeting in person would present imminent risks to the health or safety of attendees ; and

WHEREAS, pursuant to Government Code Section 54953(e)(3), the City Council must reconsider the circumstances of the state of emergency and make specific finding every 30 d ays after enacting the provisions of Government Code Section 54953(e) by making the following findings:

1. The City Council has reconsidered the circumstances of the state of emergency; and

2. Either of the following circumstances exists:

A. The state of emergency continues to directly impact the ability of the members to safely meet in person; or
B. State or local officials continue to impose or recommend measures to promote social distancing; and
Packet Page 18 of 338Attachment 1 Page 1 of 3

RES. NO. 2022-90

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WHEREAS, on March 4, 2020, Governor Newsom declared a State of Emergency pursuant to Section 8625 of the California Emergency Services Act in response to the COVID-19 pandemic (the Emergency); and

WHEREAS, the Centers for Disease Control and Prevention (CDC) continue to advise that COVID- 19 spreads more easily indoors than outdoors and that people are more likely to be exposed to COVID-19 when they are closer than 6 feet apart from others for longer periods of time; and

WHEREAS, the California Department of Public Health (CDPH) and the CDC caution that the Delta variant of COVID-19, currently the dominant strain of COVID-19 in the country, is more transmissible than prior variants of the virus, may cause more severe illness, and that even fully vaccinated individuals can spread the virus to others resulting in rapid and alarming rates of COVID-19 cases and hospitalizations; and

WHEREAS, the CDC has established a “Community Transmission” metric with 4 tiers designed to reflect a community’s COVID-19 case rate and percent positivity; and

WHEREAS, Solano County currently has a Community Transmission metric of “high” which is the most serious of the tiers; and

WHEREAS, due to the ongoing COVID-19 pandemic and the need to promote social distancing to reduce the likelihood of exposure to COVID-19, the City Council intends to hold public meetings via teleconferencing pursuant to Government Code Section 54953(e); and

WHEREAS, on October 5, 2021, the City Council adopted the provisions of Government Code Section 54953(e) for the first time by resolution and majority vote.

NOW, THEREFORE, THE COUNCIL OF THE CITY OF FAIRFIELD HEREBY RESOLVES:

Section 1. The Recitals provided above are true and correct and are hereby incorporated by reference.

Section 2. The City Council hereby determines that, as a result of the Emergency, meeting in person presents imminent risks to the health or safety of attendees.

Section 3. The City Council shall conduct its meetings pursuant to Government Code section 54953(e) and authorizes its boards and commissions to do likewise.

Section 4. The City Council has reconsidered the circumstances of the state of emergency.

Packet Page 19 of 338Attachment 1 Page 2 of 3

RES. NO. 2022-90

Page 3 ends

Section 5. The state of emergency continues to directly impact the ability of the City Council members to meet safely in person.

Section 6. State or local officials continue to impose or recommend measures to promote social distancing.

Section 7. Staff is hereby authorized and directed to continue to take all actions necessary to carry out the intent and purpose of this resolution including, conducting open and public meetings in accordance with Government Code section 54953(e) and other applicable provisi ons of the Brown Act.

Section 8. This resolution shall take effect immediately upon its adoption and must be reconsidered within 30 days to stay in effect.

PASSED AND ADOPTED this 3rd day of May 2022, by the following vote:

AYES: COUNCILMEMBERS: PRICE / BERTANI / MOY / PANDURO / TIMM / TONNESEN / VACCARO

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

MAYOR

ATTEST:

____________________________

CITY CLERK

Packet Page 20 of 338Attachment 1 Page 3 of 3

Agenda Item No: 9.

AGENDA REPORT
DATE:May 3, 2022
TO:Mayor and City Council
FROM:David Gassaway, Interim City Manager
SUBJECT:Resolution 202291 of the City Council of the City of Fairfield Authorizing Acceptance of FY 20212022 Low Carbon Transit Operations Program Grant Allocations for Electric Infrastructure Upgrades at the Fairfield Corporation Yard RECOMMENDED ACTION
Adopt resolution.

STATEMENT OF ISSUE
The City of Fairfield anticipates receiving $44,775 from Senate Bill (SB) 862 through the Low Carbon Transit Operations Program (LCTOP) revenuebased funding. This resolution authorizes the City to accept fiscal year (FY) 20212022 LCTOP funds for the Electric Infrastructure Upgrades at the Fairfield Corporation Yard (Project).

DISCUSSION
The LCTOP is one of several programs part of the Transit, Affordable Housing, and Sustainable Communities Program established by senate bill (SB) 862 in 2014. The LCTOP was created to provide operating and capital assistance for transit agencies to reduce greenhouse gas emissions and improve mobility. Through LCTOP, the City of Fairfield has been allocated $37,978 for FY 20212022.

Additionally, the City of Vacaville has agreed to provide Fairfield with their FY 20212022 revenue based LCTOP allocation of $6,797 in exchange for future Fairfield Transportation Development Act (TDA) funds. The accepted LCTOP funds will total $44,775.

The City of Fairfield was awarded a Federal Transit Administration (FTA) grant in 2017, totaling $1.2 million to purchase up to three electric buses and upgrade electrical infrastructure to accommodate electric bus charging stations. These will be the first electric buses in the Fairfield and Suisun Transit (FAST) fleet. As proposed, the City will use LCTOP monies from FY 201920 ($273,710), FY 202021 ($19,955), and FY 202122 ($44,775) LCTOP allocations to supplement funding and construction of electrical infrastructure upgrades at the cityowned Corporation Yard. Constructing these proposed improvements allows FAST to make progress towards meeting the California Air Resources Board’s established goal that all transit fleets be converted to electric vehicles by 2040.

The City submits a grant allocation request to receive these funds formally. Adoption of this resolution Packet Page 21 of 338

Agenda Item No: 9.AGENDA REPORTDATE:May 3, 2022 TO:Mayor and City CouncilFROM:David Gassaway, Interim City ManagerSUBJECT:Resolution 202291 of the City Council of the City of Fairfield Authorizing Acceptance ofFY 20212022 Low Carbon Transit Operations Program Grant Allocations for ElectricInfrastructure Upgrades at the Fairfield Corporation YardRECOMMENDED ACTIONAdopt resolution.STATEMENT OF ISSUEThe City of Fairfield anticipates receiving $44,775 from Senate Bill (SB) 862 through the Low CarbonTransit Operations Program (LCTOP) revenuebased funding. This resolution authorizes the City toaccept fiscal year (FY) 20212022 LCTOP funds for the Electric Infrastructure Upgrades at the FairfieldCorporation Yard (Project).DISCUSSIONThe LCTOP is one of several programs part of the Transit, Affordable Housing, and SustainableCommunities Program established by senate bill (SB) 862 in 2014. The LCTOP was created toprovide operating and capital assistance for transit agencies to reduce greenhouse gas emissions andimprove mobility. Through LCTOP, the City of Fairfield has been allocated $37,978 for FY 20212022.Additionally, the City of Vacaville has agreed to provide Fairfield with their FY 20212022 revenuebased LCTOP allocation of $6,797 in exchange for future Fairfield Transportation Development Act(TDA) funds. The accepted LCTOP funds will total $44,775.The City of Fairfield was awarded a Federal Transit Administration (FTA) grant in 2017, totaling $1.2million to purchase up to three electric buses and upgrade electrical infrastructure to accommodateelectric bus charging stations. These will be the first electric buses in the Fairfield and Suisun Transit(FAST) fleet. As proposed, the City will use LCTOP monies from FY 201920 ($273,710), FY 202021($19,955), and FY 202122 ($44,775) LCTOP allocations to supplement funding and construction ofelectrical infrastructure upgrades at the cityowned Corporation Yard. Constructing these proposedimprovements allows FAST to make progress towards meeting the California Air Resources Board’sestablished goal that all transit fleets be converted to electric vehicles by 2040.

The City submits a grant allocation request to receive these funds formally. Adoption of this resolution authorizes the city manager or his designee to do all things necessary to execute the required documents to receive LCTOP funds and any future amendments.

FINANCIAL IMPACT
FAST anticipates receiving $44,775 in programmed LCTOP funding for the Project. This funding requires no local match. All operating and capital expenses for FAST are supported with local, state, and federal transportation grant funds. No financial resources from the City’s General Fund are used for FAST expenses.

PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
N/A
ALTERNATIVE ACTION
The City could choose against accepting the $44,775 in LCTOP funding for the design and construction of the electrical upgrades project at the cityowned corporation yard. Unclaimed LCTOP funding will be reallocated by the Metropolitan Transportation Commission (MTC) to other transportation agencies in the region. However, not claiming this funding would result in FAST needing to obtain other funding to support the electrification of the transit fleet.

STAFF CONTACT
April Cobb, Transportation Technician
(707) 4343809
[email protected]
COORDINATED WITH
Metropolitan Transportation Commission and the City of Vacaville.

ATTACHMENTS:

Description
Proposed Resolution
City of Vacaville Letter
REVIEWERS:

Reviewer Action Date
Kaushal, Paul Approved 4/18/2022 6:57 PM
Alexander, Amber Approved 4/25/2022 2:18 PM
Alexander, Amber Approved 4/25/2022 2:25 PM
Packet Page 22 of 338

CITY OF FAIRFIELD

RESOLUTION NO. 2022-91

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FAIRFIELD AUTHORIZING ACCEPTANCE OF FY 2021-2022 LOW CARBON TRANSIT OPERATIONS PROGRAM GRANT ALLOCATIONS FOR

ELECTRIC INFRASTRUCTURE UPGRADES AT THE FAIRFIELD CORPORATION YARD

WHEREAS, the City of Fairfield is an eligible project sponsor and may receive state funding from the Low Carbon Transit Operation Program (LCTOP) for transit projects; and

WHEREAS, the statutes related to state-funded transit projects require a local or regional implementing agency to abide by various regulations; and

WHEREAS, Senate Bill 862 named the State of California Department of Transportation as the administrative agency for LCTOP; and

WHEREAS, the City of Fairfield will be allocated a total of $44,775 LCTOP funds for fiscal year (FY) 2021-2022 for transit operating and capital projects and will hold these funds for up to four years; and
WHEREAS, Senate Bill 862 (2014) named the State of California Department of Transportation as the administrative agency for LCTOP; and

WHEREAS, the City of Fairfield wishes to utilize these funds to implement the Electric Infrastructure Upgrades at the Fairfield Corporation Yard project; and

WHEREAS, a project nomination and allocation request must be made to the State of California Department of Transportation to claim these funds for the Project.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF FAIRFIELD HEREBY RESOLVES:

Section 1. The City of Fairfield, as the fund recipient, agrees to comply with all conditions and requirements set forth in the applicable statutes, regulations, and guidelines for LCTOP-funded transit projects.

Section 2. The City of Fairfield hereby authorizes the submittal of the following project nomination and allocation request to the State of California Department of Transportation in FY 2021-2022 LCTOP funds

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RES. NO. 2022-91

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Project Name: Electric Infrastructure Upgrades at the Fairfield Corporation Yard Amount of LCTOP funds requested: $44,775
Project Description: Fund the design, engineering, and construction of electrical infrastructure upgrades at Corporation Yard
Benefit to a Priority Population: Low-Income Community census tracts Amount to benefit Priority Population: $44,775
Contributing Sponsors: Metropolitan Transportation Commission, City of Vacaville

Section 3. The city manager, the public works director, or the transportation manager are authorized to execute all required documents of the LCTOP program and any amendments thereto with the California Department of Transportation.

PASSED AND ADOPTED this 3rd day of May 2022, by the following vote:

AYES: COUNCILMEMBERS: PRICE / BERTANI / MOY / PANDURO / TIMM / TONNESEN / VACCARO NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

________________________________________________
MAYOR
ATTEST:

CITY CLERK
Packet Page 24 of 338Attachment 1 Page 2 of 2

Packet Page 25 of 338Attachment 2 Page 1 of 1

Agenda Item No: 10.

AGENDA REPORT
DATE:May 3, 2022
TO:Mayor and City Council
FROM:David Gassaway, Interim City Manager
SUBJECT:Resolution 202292 of the City Council of the City of Fairfield Authorizing Execution of the Improvement Agreement for the Canon Station – Zone II Pump Station RECOMMENDED ACTION
Adopt resolution.

STATEMENT OF ISSUE
Phase 1 of the Zone II pump station (Zone II) must be constructed and operational for the City to continue providing water service for future residential and commercial development in northeast Fairfield. As part of the Amended and Restated Development Agreement, executed between One Lake Holding, LLC (developer) and the City, the developer is required to construct the Zone II. The recommended action authorizes execution of the Improvement Agreement (Agreement) for constructing the Zone II and all necessary appurtenances.

DISCUSSION
Section 5.6.5 of the Amended and Restated Development Agreement (DA), executed between the City and the developer and recorded on June 10, 2015, including any subsequent amendments, requires the developer to construct Phase 1 of the Zone II to provide service to current and future developments within northeast Fairfield. Construction of Phase 1 of the Zone II is consistent with phasing recommendations provided in the Basis of Design Report (Report), prepared by Creegan + D’Angelo (dated May 19, 2017) and the subsequent technical memorandum updating the Report, prepared by Coastland Engineering (dated March 28, 2022).

Phase 1 of the Zone II includes construction of two operational water pumps, an additional third pump for redundancy, electrical infrastructure necessary to energize the Zone II, and a pump house.

Subsequent phases will include construction of two (2) separate 2 milliongallon reservoirs. The pump station will be constructed on an undeveloped portion of the City’s North Bay Regional Water Treatment Plant facility.

The pump station shall be granted to the City, who will own and operate the facility, upon improvement acceptance by City Council.

Packet Page 26 of 338

In preparation for construction, the City contracted with Coastland Engineering to design the Zone II. Per Section 5.6.5, the developer reimbursed the City for all design costs pertinent to the pump station.

Upon completion and activation, the Zone II will serve current and future residents of the Canon Station Development and businesses within future residential and commercial development in northeast Fairfield. Furthermore, the pump station will supply adequate fire flow pressure to serve the fire hydrants within both current and future developments in northeast Fairfield.

The developer has provided all of the necessary bonds, insurance, and fees required to enter into this Agreement.

FINANCIAL IMPACT
There is no cost to the City in constructing the improvements covered in the Agreement. Once completed and accepted by council, the public improvements will obligate the City to maintain the Zone II, related appurtenances, and facilities. Upon council acceptance of the improvements, the City will utilize the Operation and Maintenance Fund (Fund 461, Division and Responsibility 77007) to maintain the facility.

Pursuant to Section 5.6.5 of the DA, the developer is eligible to receive fee credits, applicable towards Zone II impact fees assessed for developments within Planning Areas 4 and 5 of the Train Station Specific Plan, in consideration for their design and construction of the Zone II. Upon execution of the Agreement, the developer shall accrue a total of $5,372,588.96 (2022 dollars) in Zone II fee credits for construction of the pump station. It is currently anticipated that approximately $3.6 million of Zone II impact fees will be assessed for all development within Planning Area 4 and Planning Area 5, based on their adopted Master Planned Unit Development entitlements.

PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
N/A
ALTERNATIVE ACTION
The developer has met the necessary conditions and has provided the proper documents for the Agreement. However, if council has any questions regarding the public improvement construction, approval may be postponed until the questions are addressed.

STAFF CONTACT
Alvin Lei, Senior Civil Engineer
(707) 4287476
[email protected]
COORDINATED WITH
N/A
ATTACHMENTS:

Description
Vicinity Map
Proposed Resolution
Proposed Agreement
REVIEWERS:

Reviewer Action Date
Packet Page 27 of 338

Agenda Item No: 10.AGENDA REPORTDATE:May 3, 2022 TO:Mayor and City CouncilFROM:David Gassaway, Interim City ManagerSUBJECT:Resolution 202292 of the City Council of the City of Fairfield Authorizing Execution ofthe Improvement Agreement for the Canon Station – Zone II Pump StationRECOMMENDED ACTIONAdopt resolution.STATEMENT OF ISSUEPhase 1 of the Zone II pump station (Zone II) must be constructed and operational for the City tocontinue providing water service for future residential and commercial development in northeastFairfield. As part of the Amended and Restated Development Agreement, executed between One LakeHolding, LLC (developer) and the City, the developer is required to construct the Zone II. Therecommended action authorizes execution of the Improvement Agreement (Agreement) for constructingthe Zone II and all necessary appurtenances.DISCUSSIONSection 5.6.5 of the Amended and Restated Development Agreement (DA), executed between the Cityand the developer and recorded on June 10, 2015, including any subsequent amendments, requires thedeveloper to construct Phase 1 of the Zone II to provide service to current and future developmentswithin northeast Fairfield. Construction of Phase 1 of the Zone II is consistent with phasingrecommendations provided in the Basis of Design Report (Report), prepared by Creegan + D’Angelo(dated May 19, 2017) and the subsequent technical memorandum updating the Report, prepared byCoastland Engineering (dated March 28, 2022). Phase 1 of the Zone II includes construction of two operational water pumps, an additional third pumpfor redundancy, electrical infrastructure necessary to energize the Zone II, and a pump house.Subsequent phases will include construction of two (2) separate 2 milliongallon reservoirs. The pumpstation will be constructed on an undeveloped portion of the City’s North Bay Regional Water TreatmentPlant facility.The pump station shall be granted to the City, who will own and operate the facility, upon improvementacceptance by City Council.In preparation for construction, the City contracted with Coastland Engineering to design the Zone II. PerSection 5.6.5, the developer reimbursed the City for all design costs pertinent to the pump station.Upon completion and activation, the Zone II will serve current and future residents of the Canon StationDevelopment and businesses within future residential and commercial development in northeastFairfield. Furthermore, the pump station will supply adequate fire flow pressure to serve the fire hydrantswithin both current and future developments in northeast Fairfield.The developer has provided all of the necessary bonds, insurance, and fees required to enter into thisAgreement.FINANCIAL IMPACTThere is no cost to the City in constructing the improvements covered in the Agreement. Oncecompleted and accepted by council, the public improvements will obligate the City to maintain the ZoneII, related appurtenances, and facilities. Upon council acceptance of the improvements, the City willutilize the Operation and Maintenance Fund (Fund 461, Division and Responsibility 77007) to maintainthe facility.Pursuant to Section 5.6.5 of the DA, the developer is eligible to receive fee credits, applicable towardsZone II impact fees assessed for developments within Planning Areas 4 and 5 of the Train StationSpecific Plan, in consideration for their design and construction of the Zone II. Upon execution of theAgreement, the developer shall accrue a total of $5,372,588.96 (2022 dollars) in Zone II fee credits forconstruction of the pump station. It is currently anticipated that approximately $3.6 million of Zone IIimpact fees will be assessed for all development within Planning Area 4 and Planning Area 5, based ontheir adopted Master Planned Unit Development entitlements.PUBLIC CONTACT/ADVISORY BODY RECOMMENDATIONN/AALTERNATIVE ACTIONThe developer has met the necessary conditions and has provided the proper documents for theAgreement. However, if council has any questions regarding the public improvement construction,approval may be postponed until the questions are addressed.STAFF CONTACTAlvin Lei, Senior Civil Engineer(707) 428[email protected] WITHN/AATTACHMENTS:DescriptionVicinity MapProposed ResolutionProposed Agreement REVIEWERS:

Reviewer Action Date
Panganiban, Ryan Approved 4/4/2022 5:46 PM
Kaushal, Paul Approved 4/4/2022 7:49 PM
Ballard, Kelly Approved 4/5/2022 6:33 PM
Ballard, Kelly Approved 4/5/2022 6:34 PM
Packet Page 28 of 338

4.0 Land Use & Development Regulations 4-3FairÀ eld Train Station SpeciÀ c Plan | City of FairÀ eld NORTH
Figure 4-1 Conceptual Illustrative Plan
Disclaimer: This map is conceptual only and subject to substantial change without notice. No representations or warranties of any type are made by this plan.Vanden RoadPeabody RoadNew Canon Road Cement Hill Road
(Manuel Campos Parkway)

ZONE II PUMP

STATION SITE
PEABODY ROADATTACHMENT 1

VANDEN ROADFUTURE

NEW CANON ROAD

PLANNING
AREA 5

PLANNING
AREA 4

VICINITY MAP
Packet Page 29 of 338Attachment 1 Page 1 of 1

CITY OF FAIRFIELD

RESOLUTION NO. 2022-92

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FAIRFIELD AUTHORIZING EXECUTION OF THE IMPROVEMENT AGREEMENT FOR THE CANON STATION – ZONE II PUMP STATION

WHEREAS, One Lake Holding, LLC has requested the City Council approve an Improvement Agreement to construct Zone II pump station improvements on the City’s North Bay Regional Water Treatment Plant site; and

WHEREAS, the developer has provided all of the necessary bonds and insurance, and paid the fees required to enter into this Improvement Agreement.

NOW, THEREFORE, THE COUNCIL OF THE CITY OF FAIRFIELD HEREBY RESOLVES:

Section 1. The city manager is authorized and directed to execute on behalf of the City of Fairfield that certain Improvement Agreement between the City and One Lake Holding, LLC.

Section 2. The city manager is hereby authorized to do all things necessary and proper to implement the above-mentioned agreement.

PASSED AND ADOPTED this 3rd day of May 2022, by the following vote:

AYES: COUNCILMEMBERS: PRICE / BERTANI / MOY / PANDURO / TIMM / TONNESEN / VACCARO

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

MAYOR
ATTEST:

CITY CLERK
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CITY OF FAIRFIELD

IMPROVEMENT AGREEMENT
Canon Station – Zone II Pump Station

ONE LAKE HOLDING, LLC

THIS IMPROVEMENT AGREEMENT ("Agreement"), for purposes of identification dated _____________, 2022 is made and entered into by and between the CITY OF FAIRFIELD, a California municipal corporation, hereinafter referred to as "City," and ONE LAKE HOLDING, LLC, a Delaware Limited Liability Company, hereinafter referred to as "One Lake." City and One Lake may be collectively referred to as the “Parties” or individually as a “Party.”

R E C I T A L S:

A. One Lake has presented to City a development plan of land for land commonly known as Canon Station – Planning Area 4 (the “Development”) located within the corporate limits of City, the plan having been prepared in accordance with the requirements of the City Engineer.

B. This Agreement concerns improvements commonly referred to as the Canon Station – Zone II Pump Station (the "Required Improvements"), all of which are incorporated into the plans and specifications of the Development.

C. In accordance with Amended and Restated Development Agreement between the City and One Lake, dated May 8, 2015 ("DA"), including any subsequent DA amendments, the Parties agreed that One Lake shall construct the Zone II pump station in exchange for Zone II water connection fee credits for the Development. One Lake is required to enter into an improvement agreement with the City to be eligible to receive fee credits.

D. One Lake has requested approval of the plans and specifications prior to the construction and completion of the Required Improvements, including, but not limited to: the Zone II pump station, infrastructure to energize the Zone II pump station, connections to future storage reservoirs, and related Packet Page 31 of 338Attachment 3 Page 1 of 15

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appurtenances and connections as required by the City Engineer, the Ordinances of the City, and the Train Station Specific Plan, heretofore approved by the City Council of the City of Fairfield.

A G R E E M E N T S:

The Parties hereto agree as follows:

1. The General Contractor: City acknowledges and agrees that One Lake is not a licensed contractor but that One Lake will be contracting with a licensed general contractor (the "General Contractor") who will furnish, construct and install the Required Improvements pursuant to this Agreement. The contract between One Lake and General Contractor for completion of the Required Improvements shall be referred to and incorporated herein as the Construction Contract.

2. Performance of Work: One Lake agrees to furnish, construct, and install at their own expense, or cause to be furnished, constructed, and installed, all Required Improvements as shown on the plans and specifications of the Development, a copy of which is on file in the Office of the City Engineer and is incorporated herein by reference, along with any changes and modifications as may be required by the City Engineer due to errors of omission on the plans.

3. Work; Satisfaction of the City Engineer: All of the work on the Required Improvements is to be done at the places, with the materials, in the manner and at the grades, all as shown upon the approved plans and specifications and the City's most current Standard Specifications and Details as authorized via Fairfield City Council Resolution 2014-93, and to the satisfaction of the City Engineer. Except as provided in the DA, no building permits or occupancy may be issued for any building necessitating service from the Required Improvements until those improvements are constructed and approved by the City Engineer and the following conditions are satisfied:

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(a) The water system shall be constructed and tested
(bacteriologically and pressure)
(b) See Section 21, “Additional Terms and Conditions,” for additional building permit restrictions.

4. Work; Time for Commencement and Performance: City fixes the time for the commencement of the work to be done on the day following approval of this Agreement, and for its completion to be within twelve (12) months thereafter. A pre-construction meeting between the Parties and General Contractor is required at least fifteen (15) calendar days prior to the start of construction.

5. Time of Essence; Extension: Time is of the essence of this Agreement, but the dates for commencement and completion of the work of construction may be extended as herein provided. The City Engineer may extend those dates for delays in the work actually caused by inclement weather, riots, strikes, lockouts, fires, earthquakes, floods and conditions resulting there from. Extension of the dates for any other cause shall be made only by the City Council. The City Engineer and City Council shall be the sole and final judge as to whether good cause has been shown to entitle One Lake to an extension.

6. Request for Extension; Granting: Requests for extension of commencement and completion date shall be in writing and shall be delivered to City in the manner hereinafter specified for services of notices.

Extensions, if granted, shall be in writing; an oral extension shall not be valid for any purpose whatsoever.

7. Extension; No Release of Obligations: In the event it is deemed necessary by the City to extend the time of commencement or completion of the work to be done under this Agreement beyond the dates specified herein, such extension as shall be granted shall in no way release any guarantee given by One Lake pursuant to this Agreement, or to relieve or release those providing improvement security pursuant to this Agreement. The sureties Packet Page 33 of 338Attachment 3 Page 3 of 15

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in executing the bonds shall be deemed to have expressly agreed to any such extension of time.

8. Extension; Conditions: The granting of any extension may be conditioned upon One Lake providing City with new or amended surety bonds in amounts increased to reflect increases in the costs of constructing the Required Improvements that have occurred prior to the granting of the extension or are likely to occur prior to the completion of work.

9. Improvement Security: Concurrently with the execution hereof, One Lake shall furnish City:
(a) Improvement security in the sum of $5,530,976, which sum is equal to one hundred ten percent (110%) of the estimated cost of constructing the Required Improvements, rounded up, and the cost of any other obligation to be performed by One Lake hereunder, securing the faithful performance of this Agreement.
(b) Separate improvement security in the sum of $2,765,488, which sum is equal to fifty-five percent (55%) of the estimated cost of constructing the Required Improvements, securing payment to the General Contractor, its subcontractors, and to persons furnishing labor, materials, or equipment to them for the construction of the Required Improvements.

The form of the improvement security shall be subject to the approval of the City Attorney. Improvement security shall be reduced or released by City only in the manner provided by the Ordinances of the City. No change, alteration, or addition to the terms of this Agreement or the plans and specifications accompanying the same shall in any manner affect the obligation of those providing improvement security pursuant to this Agreement.

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10. Engineering and Inspection Fee: One Lake shall:
(a) Pay to the City an engineering plan check fee of 1.35% of the total cost of the Required Improvements, as estimated by the City Engineer, less the initial plan check fee of one percent (1%) of the total cost paid upon submittal of improvement plans, rounded to the nearest whole number. The total
amount of this fee still due is:
(1.35% x $5,028,160.00) - $0.00 = $67,880.16.
(b) Pay to the City an engineering and inspection fee of five and a half percent (5.5%) of the total cost of the Required Improvements, rounded to the nearest whole number, as
estimated by the City Engineer, being:

5.5% x $5,028,160.00 = $276,548.80.

Fee includes only items of work to be inspected by the City. It is understood that such fee covers only those inspections and engineering work performed by the City during the normal working hours of the City.

11. Hold Harmless Agreement: One Lake will indemnify, hold harmless and assume defense of, in any actions of law or in equity, the City of Fairfield, its officers, employees, agents, and elective and appointive boards from all claims, losses, damage, including property damage, personal injury, including death, and liability of every kind, nature and description, directly or indirectly arising from the operations of One Lake, General Contractor or any subcontractor, or of any person directly or indirectly employed by, or acting as agent for One Lake, General Contractor or any subcontractor, but not including the sole or active negligence or willful misconduct of the City of Fairfield. This indemnification shall extend to claims, losses, damages, injury and liability for injuries occurring after completion of the work as well as during the work's progress.

Acceptance of insurance certificates required under this Agreement does not relieve One Lake from liability under this indemnity and hold harmless Packet Page 35 of 338Attachment 3 Page 5 of 15

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clause. This indemnity and hold harmless clause shall apply to all damages and claims for damages of every kind suffered, or alleged to have been suffered, by reason of any of One Lake’s, its General Contractor's or any subcontractor's operations regardless of whether or not such insurance policies shall have been determined to be applicable to any of such damages or claims for damages.

12. Contractor's Insurance: One Lake shall not commence work under this Agreement or permit its General Contractor or any subcontractor to commence work thereunder until One Lake shall have obtained or caused to be obtained all insurance required under this paragraph and such insurance shall have been approved by the City Engineer of City as to form, amount, and carrier. The insurance shall be maintained in force and effect until the completion of work under this Agreement and the acceptance thereof by City. All requirements herein provided shall appear either in the body of the insurance policies or as endorsements, and shall specifically bind the insurance carrier.
(a) WORKER'S COMPENSATION INSURANCE: One Lake
shall obtain and maintain (or cause to be obtained and
maintained) workers' compensation insurance for all One Lake and General Contractor employees employed at the site of improvement. Proof of a qualified self-insurance program is acceptable. One Lake shall require any sub-contractor similarly to provide workers' compensation insurance for all of the subcontractor's employees, unless such employees are covered by the protection afforded by One Lake or the
General Contractor. In case any class of employees engaged in work under this Agreement at the site of the project is not protected under any workers' compensation law, One Lake shall provide, and shall cause General Contractor and each subcontractor to provide, adequate insurance for the
protection of employees not otherwise protected. One Lake Packet Page 36 of 338Attachment 3 Page 6 of 15

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hereby agrees to indemnify City for any damage resulting to it from failure of General Contractor or any subcontractors to take out or maintain such insurance. One Lake shall provide the City Engineer with a certificate of insurance indicating workers' compensation coverage prior to engaging in any activity required by this Agreement.
(b) LIABILITY INSURANCE: One Lake, at its sole expense, shall obtain and maintain (or cause to be obtained and maintained) an insurance policy or policies, issued by an insurer or insurers as defined by the California Insurance Code with an A.M. Best rating of B+/XII or A-/VII or better, providing the City, its officers, employees, and agents, named as additional insureds under the policy, broad form property damage,
personal injury, automobile, employers', and comprehensive form liability insurance in the amount of not less than $3 million per occurrence. By the terms of the insurance policy or policies, such insurance shall be deemed primary
insurance, and no other insurance effected by the City or other named insureds will be called upon to cover a loss covered thereunder.

In the event that any of the insurance policies provided for in this Section 12 insures any entity, persons, boards, or commissions other than those mentioned in this paragraph, such policy shall contain a standard form of cross-liability endorsement, insuring on such policy City, its elective and appointive boards, commissions, officers, agents, and employees, One Lake, General Contractor and any subcontractor performing work covered by this Agreement. All stated minimum levels of insurance may be met by a combination of primary, excess, and umbrella insurance, including any fronting or captive insurance, provided Indemnitee is endorsed as an additional insured with regard to all such excess coverage.

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City agrees that the insurance requirements in this Section 12 may be satisfied with insurance furnished by the General Contractor that meets such insurance requirements. In its contract with the General Contractor, One Lake agrees to require the General Contractor to agree to include in their(its) subcontracts with all of its subcontractors (a) the same requirements and provisions of this Agreement including the indemnity and Insurance requirements to the extent they apply to the scope of the subcontractors’ work, and (b) the requirement that the subcontractors include such provisions in the subcontracts, if any, that such subcontractors enter into with their subcontractors.

13. Evidence of Insurance: One Lake shall furnish the City Engineer prior to commencement of any work hereunder, with satisfactory evidence of the insurance required, and evidence that each carrier is required to give City at least thirty days prior notice of the cancellation or reduction in coverage of any policy during the effective period of this Agreement.

14. Title to Improvements: Title to and ownership of all improvements constructed hereunder shall vest absolutely in City upon completion and acceptance of such improvements by City.

15. Repair or Reconstruction of Defective Work: If, within a period of one year after final acceptance of the work performed under this Agreement, any improvement or part of any improvement furnished and/or installed or constructed, or caused to be installed or constructed by One Lake, or any of the work done under this Agreement fails to fulfill any of the requirements of this Agreement or the specifications referred to herein, One Lake shall without delay and without any cost to City, repair or replace or reconstruct, or cause to be repaired or replaced or reconstructed, any defective or otherwise unsatisfactory part or parts of the work or structure. Should One Lake fail to act promptly or in accordance with this requirement, or should the exigencies of the case require repairs or replacements to be made before One Lake can be notified, City may, at its option, make the necessary repairs or replacements or perform the necessary work, and One Lake shall Packet Page 38 of 338Attachment 3 Page 8 of 15

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pay to City the actual cost of such repairs plus fifteen percent (15%) within thirty (30) days of the date of billing for such work by City. At the time these improvements are completed to the satisfaction of the City Engineer, a warranty bond shall be submitted to release the original bonds.

16. Neither One Lake nor General Contractor Are Agent of City: Neither One Lake nor General Contractor nor any of One Lake’s or General Contractor's agents or subcontractors are or shall be considered to be agents of City in connection with the performance of the obligations under this Agreement.

17. Notice of Breach and Default: If One Lake refuses or fails to obtain prosecution of the work, or any severable part thereof, with such diligence as will ensure its completion within the time specified, or any extension thereof, or fails to obtain completion of the work within such time, or if One Lake should be adjudged a bankrupt, or One Lake should make a general assignment for the benefit of One Lake's creditors, or if a receiver should be appointed in the event of One Lake's insolvency, or if One Lake or its General Contractor or any of their subcontractors, agents, or employees should violate any of the provisions of this Agreement, City Engineer may serve written notice upon One Lake and One Lake's surety of breach of this Agreement, or of any portion thereof, and of default of One Lake hereunder.

18. Breach of Agreement; Performance by Surety or City: In the event of any such notice, One Lake's surety shall have the duty to take over and complete the work and the improvement herein specified; provided, however, that if the surety within fifteen (15) days after the serving of such notice of breach upon it does not give City written notice of its intention to take over the performance of the contract, and does not commence performance thereof within fifteen (15) days after notice to City of such election, City may take over the work and prosecute the same to completion by contract, or by any other method City may deem advisable, for the account and at the expense of One Lake, and One Lake's surety shall be liable to City for any excess cost of damages occasioned City thereby; and in such event, City, without liability for so doing, may take possession of and Packet Page 39 of 338Attachment 3 Page 9 of 15

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utilize in completing the work, such materials, appliances, plant and other property belonging to One Lake or its General Contractor as may be on the site of the work and necessary therefor. One Lake shall cause the Construction Contract to include a provision implementing the rights of City pursuant to this Section 18.

19. Notices: All notices herein required shall be in writing, and delivered in person or sent by registered mail, postage prepaid.

Notices required to be given to City shall be addressed as follows:

Fairfield City Hall, Attn: City Engineer
1000 Webster Street
Fairfield, CA 94533

Notices required to be given to One Lake shall be addressed as follows:

ONE LAKE HOLDING LLC, C/O DAN AGUILAR
2121 N. CALIFORNIA BLVD, STE #1010
WALNUT CREEK, CA 94596
(To be completed by One Lake)

Notices to be given surety of One Lake shall be addressed as follows:

ONE LAKE HOLDING LLC, C/O DAN AGUILAR
2121 N. CALIFORNIA BLVD, STE #1010
WALNUT CREEK, CA 94596
(To be completed by surety of One Lake)

Any Party or the surety may change such address by notice in writing to the other Party and thereafter notices shall be addressed and transmitted to the new address.

20. Oversizing: Public improvement oversizing and/or reimbursement as defined in City Code Chapter 6B, Chapter 10, Article IV, Sections 10.56 through 10.65; and Chapter 25, Article III, Section 25.166.79 through

25.166.81 is not applicable.

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21. Additional Terms and Conditions: This Agreement is subject to the following additional terms and conditions (except as specifically provided otherwise):
a. Approval of this improvement agreement shall not obligate the City to subsequently accept improvements which strictly conform to the plans referenced by this agreement. All costs associated with modifications resulting from subsequent improvement plan changes required by the City shall be borne by the One Lake.
b. Zone II Fee Credits: In accordance with the requirements of Section

5.6.5 of the Amended and Restated Development Agreement (“DA”), dated May 8, 2015, and all subsequent amendments, One Lake shall be eligible to receive Zone II water connection fee credits (“Zone II Credits”) in consideration for One Lake’s construction of the Required Improvements. Based on the cost estimate (see Exhibit 1) submitted for construction of the Zone II pump station, One Lake is eligible to receive a total of $5,372,588.96 (2022 dollars) in Zone II Credits as follows:

1. Pump Station Construction. In consideration for One Lake’s construction of the Required Improvements, One Lake shall garner $5,028,160.00 (2022 dollars) in Zone II Credits.

2. Pump Station Plan Check. In consideration for One Lake’s payment to the City for plan checking services for the
Required Improvements, One Lake shall garner $67,880.16 (2022 dollars) in Zone II Credits, as determined in Section 10(a) above.

3. Pump Station Inspection. In consideration for One Lake’s payment to the City for construction inspection of the
Required Improvements, One Lake shall garner $276,548.80 (2022 dollars) in Zone II Credits, as determined in Section 10(b) above.

Parties acknowledge and agree that any remaining Zone II Credits garnered under this Agreement that are not credited towards Zone II Packet Page 41 of 338Attachment 3 Page 11 of 15

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connections fees for the current year shall be escalated pursuant to City of Fairfield Resolution 2013-69.
c. Prevailing Wage Requirement: One Lake shall comply with all prevailing wage requirements, with respect to the Required Improvements, as required by California law, including but shall not be limited to the following:

1. Per the Public Contract Code, One Lake shall obtain a minimum of three (3) bids from qualified contractors.

Qualifications shall be prepared by One Lake as part of the bid package to be reasonably approved by the City Engineer.

At the City Engineer’s sole discretion, One Lake shall select the lowest responsible bidder.

2. As required by California law, prevailing wage rates shall be paid by One Lake and its contractors for all construction of the Required Improvements.

3. City shall have the opportunity to review and approve in a timely manner all solicited proposals, bids, contracts and change orders prior to authorization of the work to proceed.

One Lake shall provide full documentation including, but not limited to, invoices, certified payroll and all other necessary information satisfying prevailing wage requirements pertaining to construction of the Required Improvements. Documents shall be submitted monthly, at the minimum, to the City’s Construction Manager.
d. Prevailing Wage Indemnification: One Lake shall pay prevailing wages to the extent required by the Prevailing Wage Law (California Labor Code Section 1720 et seq.). One Lake hereby agrees to defend, indemnify and hold the City, its officers, agents and employees free and harmless from any liability based the failure of Developer or its contractors or subcontractors to pay prevailing wages as required by said provisions of the Labor Code.

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22. Prohibited Interest: No employee of the City shall have any direct financial interest in this Agreement. This Agreement shall be voidable at the opinion of the City if this provision is violated.

23. Local Employment Policy: The City of Fairfield desires, wherever possible, to hire qualified local residents to work on city projects. Local resident is defined as a person who resides in Solano County.

The City encourages an active affirmative action program on the part of its contractors, consultants, and developers.

When local projects require, subcontractors, contractors, consultants, and developers will solicit proposals from qualified local firms where possible.

24. Qualified Bids: Both the City and One Lake acknowledge and agree that the contractor chosen as the General Contractor will satisfy the City’s bidding requirements applicable to reimbursements for the improvements to be constructed under this Agreement.

[signatures on following page]
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IN WITNESS WHEREOF, the parties hereto have executed this Improvement Agreement on the date set forth opposite their respective signatures.

Dated:

City of Fairfield,
a municipal corporation
ATTEST:

By:

City Clerk

By:

City Manager

One Lake Holding, LLC,
a Delaware Limited Liability Company

By:

Name:Dan Aguilar

Title:Co-President
Packet Page 44 of 338Attachment 3 Page 14 of 15

CITY OF FAIRFIELD

IMPROVEMENT AGREEMENT CHECK LIST

PROJECT NAME: Canon Station – Zone II Pump Station

OWNER: One Lake Holding, LLC

ADDRESS: 2121 N. California Blvd., Suite #1010, Walnut Creek, CA 94596

COUNCIL MEETING DESIRED: April 19, 2022

SUBMISSION DEADLINE: March 23, 2022

DESCRIPTION QUANTITY UNIT COST AMOUNT RECD BY DATE
Plan Check Fee (less initial PC) 1.35% $5,028,160 $67,880.16 Engineering/Inspection Fee 5.5% $5,028,160 $276,548.80
TOTAL: $344,428.96
Total Cost Estimate $5,028,160
Faithful Performance Bond 110% $5,530,976
Labor and Materials Bond 55% $2,765,488
Insurance Certificate $3 Million
Signed Agreement
Construction Plans
Distribution:

City Manager
City Engineer
One Lake
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Agenda Item No: 11.

AGENDA REPORT
DATE:May 3, 2022
TO:Mayor and City Council
FROM:David Gassaway, Interim City Manager
SUBJECT:Resolution 202293 of the City Council of the City of Fairfield Approving the Plans and Specifications and Awarding a Contract to First Serve Production, Inc. for the Allan Witt Community Park Tennis Courts Resurfacing Maintenance Project and Updating the Fiscal Year 2021/2022 Budget
RECOMMENDED ACTION
Adopt resolution.

STATEMENT OF ISSUE
City Council directed staff to complete resurfacing, striping improvements and upgrade the sports court layout and amenities at Allan Witt Community Park to include 16 pickleball courts, three tennis courts, and one futsal court. The proposed resolution approves the plans and specifications for the Allan Witt Community Park Tennis Courts Resurfacing Maintenance Project (Project) and awards the contract in the amount of $349,800 to First Serve Production, Inc.

DISCUSSION
The eight tennis courts at Allan Witt Community Park (Allan Witt) were constructed in 1977. The structural section of the approximately 66,000 square foot playing surface consists of 1 inch of leveling course over 2 inches of asphalt over 8 inches of aggregate base rock. Staff does not have any records that indicate any significant maintenance work being completed on the tennis courts.

At the council meeting on September 7, 2021, council asked staff to explore opportunities to renovate the existing tennis courts at Allan Witt. Staff reviewed the 2016 Community Spaces Initiative and affirmed the initial proposed timing within Phase 7 of the masterplan. Currently, there is not sufficient funding to complete Phase 7 of the masterplan. In conjunction with this Project staff also upgraded the tennis and basketball court lights.

On December 21, 2021, staff brought to council for approval a design contract with Callander Associates, preliminary budget, and timeline for the Project. Staff conducted an outreach meeting with the user groups and used their feedback to create the proposed final sports court layout. On March 1, 2022, council approved the Project with the following direction: Renovate the northerly four existing tennis courts into independent pickleball courts (sixteen in total); renovate three tennis courts as Packet Page 46 of 338

Agenda Item No: 11.AGENDA REPORTDATE:May 3, 2022 TO:Mayor and City CouncilFROM:David Gassaway, Interim City ManagerSUBJECT:Resolution 202293 of the City Council of the City of Fairfield Approving the Plans andSpecifications and Awarding a Contract to First Serve Production, Inc. for the Allan WittCommunity Park Tennis Courts Resurfacing Maintenance Project and Updating theFiscal Year 2021/2022 BudgetRECOMMENDED ACTIONAdopt resolution.STATEMENT OF ISSUECity Council directed staff to complete resurfacing, striping improvements and upgrade the sports courtlayout and amenities at Allan Witt Community Park to include 16 pickleball courts, three tennis courts,and one futsal court. The proposed resolution approves the plans and specifications for the Allan WittCommunity Park Tennis Courts Resurfacing Maintenance Project (Project) and awards the contract inthe amount of $349,800 to First Serve Production, Inc.DISCUSSIONThe eight tennis courts at Allan Witt Community Park (Allan Witt) were constructed in 1977. Thestructural section of the approximately 66,000 square foot playing surface consists of 1 inch of levelingcourse over 2 inches of asphalt over 8 inches of aggregate base rock. Staff does not have any recordsthat indicate any significant maintenance work being completed on the tennis courts. At the council meeting on September 7, 2021, council asked staff to explore opportunities to renovatethe existing tennis courts at Allan Witt. Staff reviewed the 2016 Community Spaces Initiative andaffirmed the initial proposed timing within Phase 7 of the masterplan. Currently, there is not sufficientfunding to complete Phase 7 of the masterplan. In conjunction with this Project staff also upgraded thetennis and basketball court lights.On December 21, 2021, staff brought to council for approval a design contract with CallanderAssociates, preliminary budget, and timeline for the Project. Staff conducted an outreach meeting withthe user groups and used their feedback to create the proposed final sports court layout. On March 1, 2022, council approved the Project with the following direction: Renovate the northerly four existing tennis courts into independent pickleball courts (sixteen in total); renovate three tennis courts as independent tennis courts and renovate the remaining tennis court into an independent futsal court.

One bid was received and opened on April 5, 2022. The bid was $349,620.72; the engineer’s estimate was $350,000. The apparent low bidder was First Serve Production, Inc. (First Serve) from Meadow Vista, California in the amount of $349,620.72. Staff has reviewed the bid for compliance with the bid requirements and recommends that the council award the contract to First Serve of Meadow Vista, California. First Serve is appropriately licensed by the Contractors State License Board to perform the work.

FINANCIAL IMPACT
The construction authorization for the Project will be $419,545, which is the total bid amount plus a 20% contingency ($349,621 total bid + $69,924 contingency). Staff is requesting a 20% contingency in lieu of the traditional 10%, because of the complexity and nature of the work. Additional funds from Bedroom Tax (Fund 062, $172,100) are to be transferred to Parks Capital Projects Fund (Fund 251, Division and Responsibility Code 99306) to complete funding for this project.

PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
A notice inviting bids for this project was advertised twice in the Daily Republic newspaper on March 18 and March 25, 2022. In addition, the Plans and Specifications were hosted through BPX Printing & Graphics online Planroom. One contractor purchased plans and specifications for the Project. The initial advertisement emailed a notice of the project and complete bid package to a total of 10 builder’s exchanges in the State of California covering the area from Redding to San Jose and Stockton to Santa Rosa.

ALTERNATIVE ACTION
If the council has any questions, this request may be delayed so that staff may provide the necessary back up information.

STAFF CONTACT
Caroline Vedder, Associate Civil Engineer
(707) 4287484
[email protected]
COORDINATED WITH
Finance Department
ATTACHMENTS:

Description
Bid Results
Final Sports Court Layout
Proposed Resolution
REVIEWERS:

Reviewer Action Date
Panganiban, Ryan Approved 4/18/2022 6:23 PM
Kaushal, Paul Approved 4/18/2022 6:57 PM
Alexander, Amber Approved 4/25/2022 2:16 PM
Alexander, Amber Approved 4/25/2022 2:16 PM
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City of Fairfield
Public Works Department

Allan Witt Community Park: Tennis Courts Resurfacing
Maintenance Project

NAME OF PROJECT
April 5, 2022, 2:15 p.m.

DATE OF BID

NO. BIDDER AMOUNT
1 First Serve Production, Inc. Meadow Vista, CA $349,620.72

Engineer’s Estimate $350,000.00
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CITY OF FAIRFIELD

RESOLUTION NO. 2022-93

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FAIRFIELD APPROVING THE PLANS AND SPECIFICATIONS AND AWARDING A CONTRACT TO FIRST SERVE PRODUCTION, INC. FOR THE

ALLAN WITT COMMUNITY PARK TENNIS COURTS RESURFACING MAINTENANCE PROJECT AND UPDATING THE FISCAL YEAR 2021/2022 BUDGET

WHEREAS, at the March 1, 2022, City Council meeting, City Council directed staff to design the sports court layout to include 16 pickleball courts, three tennis courts, and one futsal court; and

WHEREAS, the bid opening for the Allan Witt Community Park Tennis Courts Resurfacing Maintenance Project took place on April 5, 2022; and

WHEREAS, First Serve Production, Inc. is the lowest responsive and responsible bidder in the amount of $349,620.72; and

WHEREAS, staff has reviewed the bid documents from First Serve Production, Inc. and found them to be in order; and

WHEREAS, staff is recommending that the council award the contract to First Serve Production, Inc. as the lowest responsive and responsible bidder; and

WHEREAS, funding was not allocated in the City’s approved 2021 -2022 Budget thus requiring a revision to add $172,100 to cover the remaining cost of the project; and

WHEREAS, the revised appropriation constitutes an update to the 2021-2022 Budget approved pursuant to Resolution No. 2021-126.

NOW, THEREFORE, THE COUNCIL OF THE CITY OF FAIRFIELD HEREBY RESOLVES:

Section 1. The plans and specifications for the Allan Witt Community Park Tennis Courts Resurfacing Maintenance Project are hereby approved.

Section 2. The city manager is authorized to enter into a contract with First Serve Production, Inc. for the Allan Witt Community Park Tennis Courts Resurfacing Maintenance Project in the amount of $349,620.72.

Section 3. The public works director is hereby authorized to execute and administer change orders for an amount not-to-exceed $69,924.28, or 20% of the contract amount.

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Section 4. The city manager is authorized to enter into an escrow agreement for security deposits in lieu of retention for said contract if requested by the contractor.

Section 5. The council hereby approves the appropriation of $172,100 unrestricted fund balance in Fund 062 to Fund 251 Park Capital Projects for the Allan Witt Community Park Tennis Court Renovation Project, Division and Responsibility Code 99306.

PASSED AND ADOPTED this 3rd day of May 2022, by the following vote:

AYES: COUNCILMEMBERS: PRICE / BERTANI / MOY / PANDURO / TIMM / TONNESEN / VACCARO

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

MAYOR

ATTEST:

____________________________

CITY CLERK
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Agenda Item No: 12.

AGENDA REPORT
DATE:May 3, 2022
TO:Mayor and City Council
FROM:David Gassaway, Interim City Manager
SUBJECT:Resolution 202294 of the City Council of the City of Fairfield Approving the Report of the Advisory Board for Calendar Year 2021 and Proposed Budget for Calendar Year 2022 in Connection with the North Texas Street Business Improvement District; and Resolution 202295 of the City Council of the City of Fairfield Declaring Intention to Levy an Assessment Against Businesses within the North Texas Street Business Improvement District for Calendar Year 2022 and Setting a Time and Place for Hearing Objections Thereto
RECOMMENDED ACTION
Adopt resolutions.

STATEMENT OF ISSUE
The North Texas Street Business Association (Advisory Board), as advisory board to the North Texas Street Business Improvement District (District), seeks City Council to approve of the District’s Annual Report for 2021 and Proposed Budget for Calendar Year 2022 (Report), and correspondingly, declare the intent to levy an assessment against businesses within the District for calendar year 2022 and set the required public hearing for May 17, 2022.

DISCUSSION
In September 1999, the council adopted Ordinance 9921, establishing the District and the levy of assessments within the District under the Parking and Business Improvement Law of 1989. Under this law, the process of levying an assessment involves the preparation of a report each year by an advisory board appointed by the council and the holding of a public hearing before levying the assessments. The report must include the expenditure of revenues derived from the levying of assessments, the classification of businesses, the method and basis of levying the assessments, and a description of the improvements and activities to be performed during the year. In November 2000, the council adopted Resolution 2000280 appointing the Advisory Board to make recommendations on the expenditure of revenues derived from the assessments.

Agenda Item No: 12.AGENDA REPORTDATE:May 3, 2022 TO:Mayor and City CouncilFROM:David Gassaway, Interim City ManagerSUBJECT:Resolution 202294 of the City Council of the City of Fairfield Approving the Report ofthe Advisory Board for Calendar Year 2021 and Proposed Budget for Calendar Year2022 in Connection with the North Texas Street Business Improvement District; andResolution 202295 of the City Council of the City of Fairfield Declaring Intention to Levyan Assessment Against Businesses within the North Texas Street BusinessImprovement District for Calendar Year 2022 and Setting a Time and Place for HearingObjections TheretoRECOMMENDED ACTIONAdopt resolutions.STATEMENT OF ISSUEThe North Texas Street Business Association (Advisory Board), as advisory board to the North TexasStreet Business Improvement District (District), seeks City Council to approve of the District’s AnnualReport for 2021 and Proposed Budget for Calendar Year 2022 (Report), and correspondingly, declarethe intent to levy an assessment against businesses within the District for calendar year 2022 and setthe required public hearing for May 17, 2022.DISCUSSIONIn September 1999, the council adopted Ordinance 9921, establishing the District and the levy ofassessments within the District under the Parking and Business Improvement Law of 1989. Under thislaw, the process of levying an assessment involves the preparation of a report each year by an advisoryboard appointed by the council and the holding of a public hearing before levying the assessments. Thereport must include the expenditure of revenues derived from the levying of assessments, theclassification of businesses, the method and basis of levying the assessments, and a description of theimprovements and activities to be performed during the year. In November 2000, the council adoptedResolution 2000280 appointing the Advisory Board to make recommendations on the expenditure ofrevenues derived from the assessments.

The Advisory Board filed the Report on April 4, 2022, with the City Clerk’s Office to comply with the abovenoted requirements. The Report indicates that approximately $65,000 is anticipated from assessments in 2022. The proposed activities reflect the Advisory Board’s organizational style actions, including membership services, beautification of the District, and economic restructuring activities that focus on recruiting new businesses, retaining viable businesses, and creating a dynamic business district. The proposed 2022 assessment amount against each business will remain the same as that assessed initially in 2000.

Staff recommends that the council declare its intention to levy an assessment against businesses within the District for calendar year 2022, and set the May 17, 2022, council meeting as the date and place for the public hearing on this matter.

At the council meeting of May 17, 2022, staff intends to submit for council review and approval a contract between the City and the Advisory Board to provide the activities and services proposed in the Report.

FINANCIAL IMPACT
No City funds are involved. The 2022 District assessments are estimated to be approximately $65,000 and deposited in the NTBID Assessments Fund (Fund 583, Division and Responsibility Code 99000).

PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
The Advisory Board approved the Report at its meeting of March 30, 2022.

ALTERNATIVE ACTION
The council could elect to modify or not act on the recommendations of the Report.

STAFF CONTACT
Dwayne Dalman, Economic Development Division Manager
(707) 4287727
[email protected]
COORDINATED WITH
City Attorney's Office
ATTACHMENTS:

Description
Proposed Resolution: Approving Report
Exhibit A Report
Proposed Resolution: Declaring Intention to Levy Assessment REVIEWERS:

Reviewer Action Date
Dalman, Dwayne Approved 4/18/2022 7:37 PM
Alexander, Amber Approved 4/26/2022 4:53 PM
Packet Page 53 of 338

CITY OF FAIRFIELD

RESOLUTION NO. 2022-94

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FAIRFIELD APPROVING THE REPORT OF THE ADVISORY BOARD FOR CALENDAR YEAR 2021 AND PROPOSED BUDGET FOR CALENDAR YEAR 2022 IN CONNECTION WITH THE NORTH TEXAS STREET BUSINESS IMPROVEMENT

DISTRICT

WHEREAS, the Parking and Business Improvement Area Law of 1989 (Law), California Streets and Highways Code Sections 36500, et seq., authorizes the City Council to levy an assessment against businesses within a parking and business improvement area, in addition to any assessments, fees, charges, or taxes imposed in the city; and

WHEREAS, the Law requires the council to appoint an advisory board, which shall make recommendations to the council on the expenditure of revenues derived from the levy of assessments, on the classification of businesses, as applicable, and on the method and basis of levying the assessments; and

WHEREAS, by Resolution 2000-280, the council appointed the North Texas Street Business Association to serve as the Advisory Board (Advisory Board) for the North Texas Street Business Improvement District (District); and

WHEREAS, the Advisory Board has prepared a report entitled “North Texas Street Business Improvement District Advisory Report for 2021 and Proposed Budget for Calendar Year 2022” (Report), attached hereto as Exhibit A, which reports on the District’s 2021 activities and details the proposed levy of an assessment against businesses in the District and the District’s plans for calendar year 2022; and

WHEREAS, the Advisory Board submitted the Report, and it was certified by the Fairfield city clerk on April 4, 2022.

NOW, THEREFORE, THE COUNCIL OF THE CITY OF FAIRFIELD HEREBY RESOLVES:

Section 1. In accordance with Section 36533 of the Law, the Advisory Board has prepared and filed with the City Clerk’s Office, and the city clerk has presented to the council the Report, attached hereto as Exhibit A, which contains the proposed budget for 2022.

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RES. NO. 2022-94

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Section 2. The council has examined and reviewed the Report, and such Report is hereby approved as filed.

PASSED AND ADOPTED this 3rd day of May 2022, by the following vote:

AYES: COUNCILMEMBERS: PRICE / BERTANI / MOY / PANDURO / TIMM / TONNESEN / VACCARO

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

MAYOR

ATTEST:

______________________________

CITY CLERK
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CITY OF FAIRFIELD

RESOLUTION NO. 2022-95

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FAIRFIELD DECLARING INTENTION TO

LEVY AN ASSESSMENT AGAINST BUSINESSES WITHIN THE NORTH TEXAS STREET BUSINESS IMPROVEMENT DISTRICT FOR CALENDAR YEAR 2022 AND SETTING A TIME AND PLACE FOR

HEARING OBJECTIONS THERETO

WHEREAS, the boundaries of the District are generally described to include all properties abutting North Texas Street and Texas Street between Clay Street to the south and Nelson Road to the north as well as certain properties abutting these core properties. A map showing the boundaries of the District and properties which are included in the District is on file in t he City Clerk’s Office and is open to public inspection; and

WHEREAS, in accordance with Section 36533 of the Law, the Advisory Board prepared and filed with the City Clerk’s Office a report entitled, “North Texas Street Business Improvement District Advisory Report for 2021 and Proposed Budget for Calendar Year 2022” (Report), and by previous resolution, the council preliminarily approved the Report as filed. Said Report is on file in the City Clerk’s Office and is open to public inspection.

NOW, THEREFORE, THE COUNCIL OF THE CITY OF FAIRFIELD HEREBY RESOLVES:

Section 1. The council hereby declares its intention, in addition to any assessments, fees, charges, or taxes imposed by the City, to levy and collect an assessment against businesses within the District for calendar year 2022 (commencing January 1, 2022, and ending December 31, 2022).

Section 2. The council hereby declares that, as provided by law, the types of improvements and activities to be funded by the levy of an assessment against businesses within the District are as follows:

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RES. NO. 2022-95

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(a) The acquisition, construction, installation, or maintenance of tangible property with a useful life of five years or more, including, but not limited to, the following:

 benches
 trash receptacles
 decorations
 permanent landscaping

(b) Promotion of public events which benefit businesses in the District and which take place within public places within the District;
(c) Furnishing of music in any public place in the District; and (d) Activities that benefit businesses located and operating in the District.

Section 3. New businesses established in the District after January 1, 2022, shall be exempt from the levy of the assessment for calendar year 2022.

Section 4. The council hereby fixes the time and place for a public hearing on the proposed levy of an assessment against businesses within the District for calendar year 2022 as follows:

TIME: 6:00 p.m.

DATE: May 17, 2022
PLACE: City Council Chambers, 1000 Webster Street, Fairfield, CA

At the public hearing, the testimony of all interested persons regarding the levy of an assessment against businesses within the District for calendar year 2022 shall be heard. A protest may be made orally or in writing by any interested person.

Any protest pertaining to the regularity or sufficiency of the proceedings must be in writing and shall clearly set forth the irregularity or defect to which the objection is made.

Every written protest must be filed with the City Clerk’s Office at or before the time fixed for the public hearing. The council may waive any irregularity in the form or content of any written protest and at the public hearing may correct minor defects in the proceedings. A written protest may be withdrawn in writing at any time before the conclusion of the public hearing.

Each written protest must contain a description of the business in which the person subscribing to the protest is interested sufficient to identify the business and, if a person subscribing is not shown on the official records of the City as the owner of the business, the protest shall contain or be accompanied by written evidence that the person subscribing is the owner of the business.

A written protest, which does not comply with the requirements set forth in this paragraph, will not be counted in determining a majority protest (as defined below).

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RES. NO. 2022-95

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If, at the conclusion of the public hearing, written protests are received from the owners of businesses in the District which will pay 50 percent or more of the assessments proposed to be levied and protests are not withdrawn so as to reduce the protests to less than that 50 percent (i.e., there is a majority protest), no further proceedings to levy the proposed assessment, as contained in this resolution of intention, shall be taken for a period of one year from the date of the finding of a majority protest by the council.

If the majority protest is only against the furnishing of a specified type or types of improvement or activity within the District, those types of improvements or activities shall be eliminated.

Section 5. For a full and detailed description of the improvements and activities to be provided for calendar year 2022, the boundaries of the District, and the proposed assessments to be levied against the businesses within the District for calendar year 2022, reference is hereby made to the Report of the Advisory Board. The Report is on file with the City Clerk’s Office and open to public inspection.

Section 6. The city clerk is hereby authorized and directed to provide notice of the public hearing in accordance with the law.

PASSED AND ADOPTED this 3rd day of May 2022, by the following vote:

AYES: COUNCILMEMBERS: PRICE / BERTANI / MOY / PANDURO / TIMM / TONNESEN / VACCARO

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

MAYOR

ATTEST:

______________________________

CITY CLERK
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Agenda Item No: 13.

AGENDA REPORT
DATE:May 3, 2022
TO:Mayor and City Council
FROM:David Gassaway, Interim City Manager
SUBJECT:Minute Action Approving Mayor's Appointments to the Youth Commission RECOMMENDED ACTION
Approve appointments. Perform oath of office.

STATEMENT OF ISSUE
The City Council is being asked to approve the appointments as follows:

Youth Commission
Term 1/1/2022 – 12/31/2023

1. Nadia Smith

2. Diego Cortes

3. Rishi Patel

DISCUSSION
Seven seats are available on the Youth Commission for a twoyear term of January 1, 2022 through December 31, 2023.

Councilmembers Panduro and Moy interviewed two applicants on April 18, 2022. Nadia Smith applied for reappointment with recommendations from the Youth Commission so no interview was done. All two applicants interviewed were recommended for appointment and the recommendation was submitted to Mayor Harry Price for consideration.

Mayor Price has agreed with the recommendations provided today.

FINANCIAL IMPACT
N/A
PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
N/A
Packet Page 65 of 338

Agenda Item No: 13.AGENDA REPORTDATE:May 3, 2022 TO:Mayor and City CouncilFROM:David Gassaway, Interim City ManagerSUBJECT:Minute Action Approving Mayor's Appointments to the Youth CommissionRECOMMENDED ACTIONApprove appointments. Perform oath of office.STATEMENT OF ISSUEThe City Council is being asked to approve the appointments as follows:Youth CommissionTerm 1/1/2022 – 12/31/20231. Nadia Smith2. Diego Cortes3. Rishi PatelDISCUSSIONSeven seats are available on the Youth Commission for a twoyear term of January 1, 2022 throughDecember 31, 2023. Councilmembers Panduro and Moy interviewed two applicants on April 18, 2022. Nadia Smith appliedfor reappointment with recommendations from the Youth Commission so no interview was done. All twoapplicants interviewed were recommended for appointment and the recommendation was submitted toMayor Harry Price for consideration. Mayor Price has agreed with the recommendations provided today.FINANCIAL IMPACTN/A PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
N/A
ALTERNATIVE ACTION
The council could choose not to approve the mayor’s appointments, thereby leaving vacancies.

STAFF CONTACT
Amber Alexander, Deputy City Clerk
(707) 4287402
[email protected]
COORDINATED WITH
N/A
REVIEWERS:

Reviewer Action Date
Alexander, Amber Approved 4/22/2022 9:10 AM
Packet Page 66 of 338

Agenda Item No: 14.

AGENDA REPORT
DATE:May 3, 2022
TO:Mayor and City Council
FROM:David Gassaway, Interim City Manager
SUBJECT:Resolution 202296 of the City Council of the City of Fairfield Approving a Memorandum of Understanding with First 5 Solano Children and Families Commission for the Establishment of a First 5 Center in Fairfield
RECOMMENDED ACTION
Adopt resolution.

STATEMENT OF ISSUE
The City was approached by First 5 Solano Children and Families Commission (First 5) in the interest of partnering to locate a First 5 Center in Fairfield. The community center planned in the new park being developed on North Texas was identifies as an ideal location. The new park facility provides and opportunity for First 5 to locate in a newly built facility designed for their specific needs in exchange for payment of $2 million to the City to augment and offset the costs of developing the community center. To formalize a partnership to locate the First 5 Center at the new park facility, City Council must authorize execution of a Memorandum of Understanding (MOU) with First 5.

DISCUSSION
In July 2021, First 5 received an allocation of $2 million from the State of California to open a new First 5 Center in Fairfield. First 5 previously opened a First 5 Center in Vallejo that has demonstrated success in provided enhanced access to services to children and families that traditionally face disparities in accessing critical services. Services provided through the First 5 Center include early childhood education, parental education and assistance, and other common services such as assistance for housing, employment, food, and healthcare.

In December 2021, First 5 invited members of the City Council and senior city staff to tour the First 5 Center in Vallejo. During the tour, First 5 initiated conversations with the City about the funding received from the State and the opportunity to open a First 5 Center in Fairfield. First 5 identified the general location needs for the Center, as well as space, design, and timing requirements. Through followup meetings, the opportunity to colocate the new First 5 Center at the City’s planned park on North Texas Street emerged as an ideal opportunity.

The City recently commenced a planning process for the new park facility at approximately 2030 North Texas Street in early 2022 (previously referred to as Node 4A in the Linear Park Master Plan). The new park will include multiuse fields, children’s play structures, sport courts, and an approximately 6,000± square foot community center. While in the preliminary design stage, staff identified the need to budget for future services to provide out of the community center. One of the options preliminarily explored was youth services, like those First 5 provides.

The attached MOU provides a framework for partnership between the City and First 5 to locate the First 5 Center at the new community center. Key details of the MOU include:

First 5 to provide $2 million in funding to be used for design and construction of the community center
First 5 will provide input into the design of the building to ensure it meets their needs A longterm lease, at least 10years in length, is to be negotiated by the parties prior to completion of construction
First 5 to lease the property for no greater than the cost of operating the building (e.g. utilities, maintenance, etc.)
First 5 to operate the First 5 Center for the benefit of Fairfield residents The City will retain access to the community center for public use (e.g. community meetings, classes, etc.) upon coordination with First 5
Locating the First 5 Center in the new community provides a unique partnership opportunity that will benefit the residents of Fairfield while simultaneously reducing costs. First 5’s funding will provide cost savings to the City for both development and longterm operation of the community center.

The overall park project timeline anticipates the start of construction in late 2022 with completion by July 2024. This timeline works for First 5 and the state funding they have received.

FINANCIAL IMPACT
Staff estimates the total project cost for the park to be $14.8 million. The City previously received $5.7 million in competitive grant funds from the State of California for the park. By entering into the MOU with First 5, the City will offset another $2 million in costs specific to the community center building, reducing direct City expenditures to $7.1 million for the entire project.

PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
First 5 Solano Children and Families Commission board approved allocation of $2 million for the MOU at their April 20, 2022 meeting.

ALTERNATIVE ACTION
City Council may decline to approve the MOU. However, denial of the MOU will prevent the First 5 Center from locating at the park and lose out on $2 million to offset costs of development.

STAFF CONTACT
David Gassaway, Interim City Manager
(707) 4287400
[email protected]
COORDINATED WITH
City Attorney's Office, Parks and Recreation Department, Public Works Department ATTACHMENTS:

Description
Proposed Resolution
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Agenda Item No: 14.AGENDA REPORTDATE:May 3, 2022 TO:Mayor and City CouncilFROM:David Gassaway, Interim City ManagerSUBJECT:Resolution 202296 of the City Council of the City of Fairfield Approving aMemorandum of Understanding with First 5 Solano Children and Families Commissionfor the Establishment of a First 5 Center in FairfieldRECOMMENDED ACTIONAdopt resolution.STATEMENT OF ISSUEThe City was approached by First 5 Solano Children and Families Commission (First 5) in the interestof partnering to locate a First 5 Center in Fairfield. The community center planned in the new park beingdeveloped on North Texas was identifies as an ideal location. The new park facility provides andopportunity for First 5 to locate in a newly built facility designed for their specific needs in exchange forpayment of $2 million to the City to augment and offset the costs of developing the community center. Toformalize a partnership to locate the First 5 Center at the new park facility, City Council must authorizeexecution of a Memorandum of Understanding (MOU) with First 5.DISCUSSIONIn July 2021, First 5 received an allocation of $2 million from the State of California to open a new First5 Center in Fairfield. First 5 previously opened a First 5 Center in Vallejo that has demonstratedsuccess in provided enhanced access to services to children and families that traditionally facedisparities in accessing critical services. Services provided through the First 5 Center include earlychildhood education, parental education and assistance, and other common services such asassistance for housing, employment, food, and healthcare. In December 2021, First 5 invited members of the City Council and senior city staff to tour the First 5Center in Vallejo. During the tour, First 5 initiated conversations with the City about the funding receivedfrom the State and the opportunity to open a First 5 Center in Fairfield. First 5 identified the generallocation needs for the Center, as well as space, design, and timing requirements. Through followupmeetings, the opportunity to colocate the new First 5 Center at the City’s planned park on North TexasStreet emerged as an ideal opportunity. The City recently commenced a planning process for the new park facility at approximately 2030 NorthTexas Street in early 2022 (previously referred to as Node 4A in the Linear Park Master Plan). The newpark will include multiuse fields, children’s play structures, sport courts, and an approximately 6,000±square foot community center. While in the preliminary design stage, staff identified the need to budgetfor future services to provide out of the community center. One of the options preliminarily explored wasyouth services, like those First 5 provides. The attached MOU provides a framework for partnership between the City and First 5 to locate the First5 Center at the new community center. Key details of the MOU include: First 5 to provide $2 million in funding to be used for design and construction of the communitycenterFirst 5 will provide input into the design of the building to ensure it meets their needs A longterm lease, at least 10years in length, is to be negotiated by the parties prior tocompletion of constructionFirst 5 to lease the property for no greater than the cost of operating the building (e.g. utilities,maintenance, etc.)First 5 to operate the First 5 Center for the benefit of Fairfield residentsThe City will retain access to the community center for public use (e.g. community meetings,classes, etc.) upon coordination with First 5 Locating the First 5 Center in the new community provides a unique partnership opportunity that willbenefit the residents of Fairfield while simultaneously reducing costs. First 5’s funding will provide costsavings to the City for both development and longterm operation of the community center.The overall park project timeline anticipates the start of construction in late 2022 with completion by July2024. This timeline works for First 5 and the state funding they have received. FINANCIAL IMPACTStaff estimates the total project cost for the park to be $14.8 million. The City previously received $5.7million in competitive grant funds from the State of California for the park. By entering into the MOU withFirst 5, the City will offset another $2 million in costs specific to the community center building, reducingdirect City expenditures to $7.1 million for the entire project. PUBLIC CONTACT/ADVISORY BODY RECOMMENDATIONFirst 5 Solano Children and Families Commission board approved allocation of $2 million for the MOUat their April 20, 2022 meeting. ALTERNATIVE ACTIONCity Council may decline to approve the MOU. However, denial of the MOU will prevent the First 5Center from locating at the park and lose out on $2 million to offset costs of development. STAFF CONTACTDavid Gassaway, Interim City Manager(707) 428[email protected] WITHCity Attorney's Office, Parks and Recreation Department, Public Works DepartmentATTACHMENTS:

Description
Proposed Resolution
Exhibit A First 5 MOU
REVIEWERS:

Reviewer Action Date
Alexander, Amber Approved 4/25/2022 9:43 AM
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CITY OF FAIRFIELD

RESOLUTION NO. 2022-96

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FAIRFIELD APPROVING A MEMORANDUM OF UNDERSTANDING WITH THE FIRST 5 SOLANO CHILDREN AND FAMILIES COMMISSION FOR THE ESTABLISHMENT OF A FIRST 5 CENTER IN FAIRFIELD

WHEREAS, In July 2021, First 5 Solano Children and Families Commission (First 5 Solano) received $2 million in State of California funding to establish a First 5 Center in Fairfield ; and

WHEREAS, First 5 Solano approached the City in the interest of partnering to locate a First 5 Center in Fairfield to serve as an innovative hub to engage families and allow children ages 0 -5 to play, learn, and grow, and provide a critical community resource for workshops and classes to make parenting easier, help parents raise healthy, happy children, and co-locate common services for basic needs such as housing, employment services, food access, and healthcare ; and

WHEREAS, through mutually beneficial discussions, the City and First 5 Solano identified an opportunity to locate the new First 5 Center at a newly planned park and community center facility located at, or about, 2030 North Texas Street (the Property); and

WHEREAS, the Property’s location meets First 5 Solano’s target neighborhood requirements, fulfills programmatic needs for the City, and represents a mutually beneficial opportunity for partnership in locating a First 5 center in a targeted reinvestment area of Fair field; and

WHEREAS, First 5 Solano has offered to provide the $2 million in state funding to augment and offset the City’s investment in the new park facility in exchange for an opportunity to codesign the community center space for use as a First 5 Cent er and establish a long-term relationship to operate the First 5 Center at the park facility; and

WHEREAS, a Memorandum of Understanding is necessary to formalize the partnership between the City and First 5 Solano.

NOW, THEREFORE, THE COUNCIL OF THE CITY OF FAIRFIELD HEREBY RESOLVES:

Section 1. Approves the Memorandum of Understanding with First 5 Solano Children and Families Commission, attached hereto for reference as Exhibit A.

Section 2. Authorizes the city manager to execute the Memorandum of Understanding and take any further actions as necessary to implement the requirements of the Memorandum of Understanding.

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RES. NO. 2022-96

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PASSED AND ADOPTED this 3rd day of May 2022, by the following vote:

AYES: COUNCILMEMBERS: PRICE / BERTANI / MOY / PANDURO / TIMM / TONNESEN / VACCARO

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

MAYOR

ATTEST:

____________________________

CITY CLERK

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EXHIBIT A

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MEMORANDUM OF UNDERSTANDING
for the
FAIRFIELD FIRST 5 CENTER
This Memorandum of Understanding (“MOU”) is by and between the City of Fairfield, a California Municipal Corporation (hereinafter “City”), and First 5 Solano Children and Families Commission, a Department of the County of Solano (hereinafter “First 5 Solano”) (collectively referred to herein as the “Parties” or individually as a “Party”) for the establishment of a First 5 Center to be located in City.

RECITALS
WHEREAS, Solano First 5 Solano, in 1999, established the First 5 Solano Children and Families Commission to invest in programs and support that addresses community needs for early childhood education and systems of care; and
WHEREAS, in 2020, First 5 Solano established a First 5 Center located in the City of Vallejo, CA as an innovative hub to engage families and allow children ages 0-5 to play, learn, and grow, and as a critical community resource for workshops and classes to make parenting easier, help parents raise healthy, happy children, and co-locate common services for basic needs such as housing, employment services, food access, and healthcare; and
WHEREAS, First 5 Solano approached the City in the interest of partnering to locate a First 5 Center within Fairfield to provide collaborative services to the Fairfield community; and WHEREAS, through mutually beneficial discussions, the Parties have identified an opportunity to locate a new First 5 Center at a newly planned park and community center located at, or about, 2030 North Texas Street (the “Property”); and
WHEREAS, the Property’s location meets First 5 Solano’s target neighborhood requirements, fulfills programmatic needs for the City, and represents a mutually beneficial opportunity for partnership in locating a First 5 Center in a targeted reinvestment area of Fairfield; and WHEREAS, this MOU provides terms for a partnership between the Parties for the design and construction of a new building (the “Building”) that will house the Fairfield First 5 Center (the “Center”).

AGREEMENT

1. Term. This MOU shall take effect upon signed execution by the Parties and shall remain in effect until certificate of occupancy for the Center or until terminated by the provisions provided herein.

2. Design. City agrees to collaborate with First 5 Solano for the design of a new Building at the Property. The Building shall include, but is not limited to: a) not less than 6,000 square feet of useable interior space to accommodate programmatic needs of First 5 Solano at the Center; b) a secured and restricted access outdoor play area immediately adjacent to the building and including a children’s play structure designed for 0-5 year old children; c) meet all bathroom and Packet Page 72 of 338Attachment 2 Page 1 of 7

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accessibility requirements for the Center; d) parking sufficient to serve the Center; and e) furniture and fixtures required to operate the Center. First 5 Solano agrees to provide prompt response and feedback to the City, or an architectural design consultant identified by City, on any Building design requirements for the Center. City agrees to make all reasonable efforts to expedite design of the Building, within reasonable architectural industry standards.

3. Funding. City has identified a combination of local revenue and State of California grant funds to pay for development of the Property as a new community park and community center. First 5 Solano has obtained $2 million in additional grant funding from the State of California administered through First 5 California for the purpose of acquiring and improving the Center in Fairfield. First 5 Solano agrees to pay the City $2 million to offset design and construction costs of the Center in the following manner:

a. $1 million upon submission of construction documents by the architect to the City for approval.
b. $1 million upon substantial completion of the Building.

City agrees to use all funds for the design and construction of the Building to be located on the Property for the primary purpose of locating the Center within the community center. The City will provide a cost report on the utilization of the funds for FY2022/23 and FY2023/24 no later than July 30 of the following FY.

4. Compliance with All Laws, Including Laws Regarding Construction. City acknowledges that it is required to pay prevailing wages on any public works project. The City shall determine whether the activities to be contracted for include or constitute a public works project as defined by the Public Contracts Code. The City certifies it will comply with all laws and regulations which apply to the Project, including, but not limited to, legal requirements for construction contracts and workers’ compensation, building codes, environmental laws, health and safety codes, and disabled access laws.

5. Time is of the Essence. The Parties mutually acknowledge certain restrictions on the timing to expend grant funds provided for the design and construction of the Center. The Parties further agree to use best efforts to meet desired completion of construction of the Center within 24 months of execution of this MOU. The foregoing notwithstanding, the Parties mutually recognize the complexity of construction projects and any unforeseen delays that may arise from labor shortages, supply chain delays, design setbacks, contractor negligence, or any other generally accepted force majeure causes, and agree that unanticipated delays may occur. The City agrees to provide First 5 Solano routine updates, not less than quarterly, or as requested by First 5 Solano, on the status of design and construction and any modifications to the timeline for project completion.

6. Use of Center. In partnership on the Center, the City agrees to provide a long-term use agreement with First 5 Solano to operate the new community center building as the Center for a period of time not less than 10 years and for a cost not greater than necessary for the City to operate the Center. The details of a use agreement shall be negotiated by the Parties after Packet Page 73 of 338Attachment 2 Page 2 of 7

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execution of this MOU, no later than January 1, 2024. The Parties agree to negotiate the use agreement in good faith with the joint interest of ensuring the Center successfully serves the Fairfield community. First 5 Solano acknowledges the City’s interest in obtaining joint use opportunities between the Center and the City for the purpose of fully serving the needs of the Fairfield community with the Building. The City acknowledges First 5 Solano’s interest in maintaining primary use of the Building for First 5 Center operations and further agrees to seek community use outside of the operational needs of the Center.

7. Termination. This MOU may be terminated by either City or First 5 Solano at any time with good cause upon 60 days written notice one to the other following the following procedure:
a. If either party materially breaches and/or defaults in its performance, the non- defaulting party shall promptly notify the other in writing in accordance with the Dispute Resolution process below.
b. If the defaulting party fails to cure a material breach and/or default within 60 days after notification or if the material breach and/or default requires more than 60 days to cure and the defaulting party fails to commence to cure the material breach and/or default within 60 days after notification, then, at the election of the non-defaulting party this MOU may be terminated.
c. Following termination, City will reimburse First 5 Solano for any expenditure made at the time of termination, not to exceed the maximum amount payable under this MOU.

8. Dispute Resolution. If the parties fail to mutually agree on any matters under this MOU or if either party believes the other has failed to satisfactorily perform or is otherwise in breach of this MOU, the parties shall submit the matter for resolution in accordance with the following procedures:
a. If there is a disagreement, dispute or alleged breach arising out of or in connection with this MOU, the disputing party shall first provide a written statement to the other describing the general nature of the claim.
b. The statement must indicate that it is the first statement of a formal dispute resolution process.
c. The statement need not be complete and does not limit the claim(s) of either party in any further action or procedure.
d. Within ten business days of the receipt of the statement, the parties shall meet and confer in good faith to either: (1) Resolve the matter and set forth such resolution in writing; or, (2) Define the dispute in writing including a description of each party’s position, proposed resolution(s) and projects or tasks that would be affected. e. If the parties fail to resolve the matter, within ten business days of such failure to agree, at least one representative from each party shall meet and confer in good faith with County Counsel and/or County Administrator, or their designee(s), to attempt to further resolve the matter. The description of the dispute as written by the respective parties shall serve as the basis for further attempts at resolution. f. A resolution of the matter shall be memorialized in writing and incorporated into this MOU.

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9. Choice of Law. The parties have executed and delivered this MOU in the County of Solano, State of California. The laws of the State of California shall govern the validity, enforceability or interpretation of this MOU. Solano County shall be the venue for any action or proceeding in law or equity that may be brought in connection with this MOU.

10. Indemnification.
a. First 5 Solano to indemnify City. First 5 Solano agrees to defend and indemnify City, its agents, officers and employees (collectively referred to in this paragraph as ‘City”), from any claim, action or proceeding against City, arising solely out of the acts or omissions of First 5 Solano in the performance of this Agreement. At its sole discretion, City may participate at its own expense in the defense of any claim, action or proceeding, but such participation shall not relieve First 5 Solano of any obligation imposed by this Section. City shall notify First 5 Solano promptly of any claim, action or proceeding and cooperate fully in the defense.
b. City to Indemnify First 5 Solano. City agrees to defend and indemnify First 5 Solano, its agents, officers and employees (collectively referred to in this paragraph as 'First 5 Solano') from any claim, action or proceeding against First 5 Solano, arising solely out of the acts or omissions of City in the performance of this Agreement. At its sole discretion, First 5 Solano may participate at its own expense in the defense of any such claim, action or proceeding, but such participation shall not relieve City of any obligation imposed by this Section. First 5 Solano shall notify City promptly of any claim, action or proceeding and cooperate fully in the defense.
c. Each party to defend itself for concurrent claims. First 5 Solano agrees to defend itself, and City agrees to defend itself, from any claim, action or proceeding arising out of the concurrent acts or omissions of First 5 Solano and City. In such cases, First 5 Solano and City agree to retain their own legal counsel, bear their own defense costs, and waive their right to seek reimbursement of such costs, except as provided in paragraph e below.
d. Joint Defense. Notwithstanding paragraph c above, in cases where First 5 Solano and City agree in writing to a joint defense, First 5 Solano and City may appoint joint defense counsel to defend the claim, action or proceeding arising out of the concurrent acts or omissions of City and First 5 Solano. Joint defense counsel shall be selected by mutual agreement of First 5 Solano and City. First 5 Solano and City agree to share the costs of such joint defense and any agreed settlement in equal amounts, except as provided in paragraph e below. First 5 Solano and City further agree that neither party may bind the other to a settlement agreement without the written consent of both First 5 Solano and City.
e. Reimbursement and/or Reallocation. Where a trial verdict or arbitration award allocates or determines the comparative fault of the parties, First 5 Solano and City may seek reimbursement and/or reallocation of defense costs, settlement payments, judgments and awards, consistent with such comparative fault.
f. Construction Contractor. First 5 Solano understands that the construction work will be done by a third-party contractor under City's sole and exclusive supervision. The City will require the contractor to indemnify both City and First Packet Page 75 of 338Attachment 2 Page 4 of 7

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5 Solano, and to add both City and First 5 Solano as additional insureds as a requirement of the construction contract.

11. Insurance. It is agreed that the City and First 5 Solano shall each maintain at all times during the performance of this MOU insurance coverage or self-insurance in the amounts of not less than One Million Dollars ($1,000,000) to cover each Party’s liability. Specifically, but not limited to not less than One Million Dollars ($1,000,000) general liability, One Million Dollars ($1,000,000) automobile liability, One Million Dollars ($1,000,000) workers’ compensation, and One Million Dollars ($1,000,000) professional liability (E&O).

12. No Third Party Beneficiary. This MOU is made and entered into for the sole protection and benefit of the Parties and their successors and assigns. This MOU is not intended to, and shall not be construed to, create any right on the part of any third party to bring any action or otherwise enforce any of its terms.

13. Status of Employees.
a. All persons performing services for the City shall be solely employees or contractors of City and not employees of First 5 Solano, except those persons expressly and directly employed by First 5 Solano. Furthermore, City is not an agent of First 5 Solano. b. All persons performing services for First 5 Solano shall be solely employees or contractors of First 5 Solano and not employees of the City, except those persons expressly and directly employed by City. Furthermore, First 5 Solano is not an agent of District.

14. Changes and Amendments. Any mutually agreed upon changes, including any increase or decrease in the amount of compensation, shall be effective when incorporated in written amendments to this Contract. The party desiring the revision shall request amendments to the terms and conditions of this Contract in writing. Any adjustment to this Contract shall be effective only upon the parties' mutual execution of an amendment in writing. No verbal agreements or conversations prior to execution of this Contract or requested amendment shall affect or modify any of the terms or conditions of this Contract unless reduced to writing according to the applicable provisions of this Contract.

15. Notice. Any written notice necessary to the performance of this MOU shall be provided via certified mail with electronic copy provided to the following:

City of Fairfield
David Gassaway, Interim City Manager
1000 Webster Street
Fairfield, CA 94533
[email protected]

First 5 Solano Children and Families Commission
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Michele Harris, Executive Director
3375 Sonoma Blvd., Suite 30
Vallejo, CA 94590
[email protected]

16. Waiver. The failure of any Party to insist upon strict performance of any of the terms, covenants, or conditions of this MOU shall not be deemed a waiver of any right or remedy that said Party may have, and shall not be deemed a waiver of said Party’s right to require strict performance of all terms, covenants, and conditions thereafter, nor a waiver of any remedy for the subsequent breach of any of the terms, covenants or conditions.

17. Severability and/or Conflicts in the MOU. The MOU is intended to be complementary and interpreted in harmony as to avoid conflict. In the event of a conflict in the MOU, the Parties agree that the interpretation providing the highest quality and level of services to First 5 Solano shall supersede any inconsistent term in this MOU. The invalidity of any term or provision of this MOU as determined by a court of competent jurisdiction shall in no way affect the validity of any other provision hereof. Each remaining term and provision of this MOU shall be valid and enforceable to the fullest extent permitted by law.

18. Entire MOU. This MOU, including any exhibits referenced, constitutes the entire agreement between the parties and there are no inducements, promises, terms, conditions or obligations made or entered into by First 5 Solano or City other than those contained in it.

The effective date of this MOU shall be the date signed by the City.

County of Solano
By: ____________________________________
Bill Emlen, County Administrator

Department Representative
By:

Michele Harris, Executive Director

Date: _____________________

APPROVED AS TO FORM:

By:

Clarisa Sudarma, Deputy County Counsel

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CITY OF FAIRFIELD
By:

David Gassaway, Interim City Manager

Date: _____________________
APPROVED AS TO FORM:

By:

David Lim, City Attorney

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Agenda Item No: 15.

AGENDA REPORT
DATE:May 3, 2022
TO:Mayor and City Council
FROM:David Gassaway, Interim City Manager
SUBJECT:Resolution 202297 of the City Council of the City of Fairfield Authorizing a Loan and Budget Transfer from the Intergovernmental Loan Fund to Landscaping and Lighting Maintenance District No. 7 – Rolling Hills for Increased Landscape Maintenance and Consulting Services through Fiscal Year 20222023 and Authorizing an Update to the Fiscal Year 20212022 Budget; and
Resolution 202298 of the City Council of the City of Fairfield Authorizing a Loan and Budget Transfer from the Intergovernmental Loan Fund to Landscaping and Lighting Maintenance District No. 11 – Paradise Valley North for Increased Landscape Maintenance and Consulting Services through Fiscal Year 20222023 and Authorizing an Update to the Fiscal Year 20212022 Budget; and
Resolution 202299 of the City Council of the City of Fairfield Authorizing a Loan and Budget Transfer from the Intergovernmental Loan Fund to Landscaping and Lighting Maintenance District No. 13 – North Cordelia for Increased Landscape Maintenance and Consulting Services through Fiscal Year 20222023 and Authorizing an Update to the Fiscal Year 20212022 Budget
RECOMMENDED ACTION
Receive report, open discussion, adopt resolutions or provide direction to staff.

STATEMENT OF ISSUE
The fiscal year (FY) 20212022 assessment revenue and the FY 20222023 anticipated assessment revenue for Landscaping and Lighting Maintenance Districts (LLMDs) No. 7 – Rolling Hills (Rolling Hills), No. 11 – Paradise Valley North (Paradise Valley), and No. 13 – North Cordelia (North Cordelia) are insufficient to provide a level of landscape maintenance services comparable to the level of services provided in FY 20202021. Approval of these resolutions will authorize three loans and budget transfers totaling $736,000 from the Intergovernmental Fund to the LLMDs for increased landscape maintenance and consulting services through FY 20222023.

DISCUSSION
During the July 7, 2021, public hearing to approve the annual FY 20212022 assessment rates and Packet Page 79 of 338

DISCUSSION
During the July 7, 2021, public hearing to approve the annual FY 20212022 assessment rates and budgets for all LLMDs, staff reported to City Council that a reduction in services for Rolling Hills, Paradise Valley, and North Cordelia was required due to projected budget deficits if the districts continued to provide landscape services at the existing FY 20202021 level. Staff informed council that a comprehensive review of all the districts would be conducted in the coming year.

On December 21, 2021, staff presented a new service contract with reduced scopes of work for each district and reported that a community engagement process and Proposition 218 vote on the question of whether to increase assessments beginning FY 20232024 to provide an enhanced level of service would be brought to the districts’ property owners during FY 20222023. Council approved the contracts and directed staff to explore funding options to supplement the districts’ revenue and allow for the provision of services comparable to the level of services provided in FY 20202021 while the community engagement process and Proposition 218 vote were carried out.

Staff identified six possible courses of action:
1A.    A loan from the Intergovernmental Loan Fund to supplement the districts’ revenue for the remainder of FY 20212022 with an expedited community engagement process and completed Proposition 218 vote by June 30, 2022.
1B.    A loan from the Intergovernmental Loan Fund to supplement the districts’ revenue for the remainder of FY 20212022 through FY 20222023 with a full community engagement process and completed Proposition 218 vote by June 30, 2023.
2A.    A contribution from the General Fund to supplement the districts’ revenue for the remainder of FY 20212022 with an expedited community engagement process and completed Proposition 218 vote by June 30, 2022.
2B.    A contribution from the General Fund to supplement the districts’ revenue for the remainder of FY 20212022 through FY 20222023 with a full community engagement process and completed Proposition 218 vote by June 30, 2023.
3A.    No additional funding with an expedited community engagement process and completed Proposition 218 vote by June 30, 2022.
3B.    No additional funding with a full community engagement process and completed Proposition 218 vote by June 30, 2023.

The six options were presented to the residents of Paradise Valley and North Cordelia on January 25, 2022, and to the residents of Rolling Hills on January 26, 2022, during two virtual town hall meetings.

None of the options were either favored or opposed by a distinguishable majority of attendees at either meeting.

On February 1, 2022, council held a special meeting to receive feedback from residents and to consider the six options. Option 1B was approved by a 61 vote and staff was directed to return with a proposed resolution to execute loans of $500,000 to LLMD No. 7 – Rolling Hills, $175,000 to LLMD No. 11 – Paradise Valley North, and $130,000 to LLMD No. 13 – North Cordelia, for a fiveyear term at 0% interest. These loans would allow the districts to begin providing increased services as early as March 2022.

Staff returned to council with the proposed resolution for the loans on March 1, 2022. Council determined that an additional 60 days of community engagement prior to issuing the loans was necessary to confirm if property owners in these districts support receiving and repaying the loans.

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The additional community engagement required the district to postpone the provision of enhanced services until May 2022. Staff recalculated the total shortfall in each district to accommodate the new anticipated start date, and to include new projections and unexpected FY 20212022 expenditures that were not previously accounted for. The new shortfall in each district was calculated at $445,000 in LLMD No. 7, $182,000 in LLMD No. 11, and $159,000 in LLMD No. 13.

It was determined that the shortfall in each district would be proportionately funded by the district and the General Fund. The General Fund would contribute a sum equivalent to the proportion of the regular General Fund contribution budgeted in FY 20212022 in each district. The General Fund and district shares are as follows:

District
GF Share of
FY2122 Budget
Total
Shortfall
GF Share of
Shortfall
District Share
of Shortfall
LLMD No. 7 8%$445,000 $35,000 $410,000
LLMD No. 11 4%$182,000 $7,000 $175,000
LLMD No. 13 5%$159,000 $8,000 $151,000
TOTAL 17%$786,000 $50,000 $736,000
On April 1, 2022, staff and its consultant, NBS Government Finance Group (NBS), released information regarding the required loan amounts and an online poll was posted on the CivicMic.com/cityoffairfield/ website. The poll sought to assess the property owners’ level of support for, or opposition to, receiving a loan and paying a greater assessment rate for five years to repay the loan. Property owners were notified of the new website posting and poll via postcard and email notification for those who subscribed to receive electronic communications.

The postcard and email notification also invited the property owners to attend a virtual community meeting on April 18, 2022, at 6 p.m. The twohour community meeting was attended by 90 members of the public. During the meeting, City staff presented a brief history of each district, the updated proposed loan amounts of $410,000 for LLMD No. 7, $175,000 for LLMD No. 11, and $151,000 for LLMD No. 13, which would allow the districts to provide increased services beginning in May 2022, the fiveyear loan repayment schedule, and the four possible service and assessment rate outcomes for fiscal years 20222023 through 20272028. These outcomes would be determined based on their support for, or opposition to, the loan and future Proposition 218 vote for increased assessments. NBS presented general legislative and technical information about LLMDs, provided the initial results of a previously released general survey and of the current poll, and advised property owners on how they can participate in local workgroups to help establish future assessments and services. Attendees were encouraged to participate in the poll prior to the closing date of April 22, 2022. The poll questions and summarized responses from each district are attached to this report for reference.

Findings of the additional 60day community engagement effort are as follows:

LLMD No. 7 – Rolling Hills
Staff did not receive a sufficient amount of feedback from the attendees who represented this district at the community meeting to determine if the majority of property owners in LLMD No. 7 are in support of, or in opposition to, receiving and repaying the $410,000 loan. 110 people participated in the poll for LLMD No. 7. 60% of participants either strongly agreed or agreed that they support the loan, and 61% of participants either strongly agreed or agreed that they are willing to pay a higher assessment for five years to repay the loan and to receive enhanced landscaping.

LLMD No. 11 – Paradise Valley North
Staff did not receive a sufficient amount of feedback from the attendees who represented this district at the community meeting to determine if the majority of property owners in LLMD No. 11 are in support of, or in opposition to, receiving and repaying the $175,000 loan.

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Agenda Item No: 15.AGENDA REPORTDATE:May 3, 2022 TO:Mayor and City CouncilFROM:David Gassaway, Interim City ManagerSUBJECT:Resolution 202297 of the City Council of the City of Fairfield Authorizing a Loan andBudget Transfer from the Intergovernmental Loan Fund to Landscaping and LightingMaintenance District No. 7 – Rolling Hills for Increased Landscape Maintenance andConsulting Services through Fiscal Year 20222023 and Authorizing an Update to theFiscal Year 20212022 Budget; andResolution 202298 of the City Council of the City of Fairfield Authorizing a Loan andBudget Transfer from the Intergovernmental Loan Fund to Landscaping and LightingMaintenance District No. 11 – Paradise Valley North for Increased LandscapeMaintenance and Consulting Services through Fiscal Year 20222023 and Authorizingan Update to the Fiscal Year 20212022 Budget; andResolution 202299 of the City Council of the City of Fairfield Authorizing a Loan andBudget Transfer from the Intergovernmental Loan Fund to Landscaping and LightingMaintenance District No. 13 – North Cordelia for Increased Landscape Maintenanceand Consulting Services through Fiscal Year 20222023 and Authorizing an Update tothe Fiscal Year 20212022 BudgetRECOMMENDED ACTIONReceive report, open discussion, adopt resolutions or provide direction to staff.STATEMENT OF ISSUEThe fiscal year (FY) 20212022 assessment revenue and the FY 20222023 anticipated assessmentrevenue for Landscaping and Lighting Maintenance Districts (LLMDs) No. 7 – Rolling Hills (RollingHills), No. 11 – Paradise Valley North (Paradise Valley), and No. 13 – North Cordelia (North Cordelia)are insufficient to provide a level of landscape maintenance services comparable to the level ofservices provided in FY 20202021. Approval of these resolutions will authorize three loans and budgettransfers totaling $736,000 from the Intergovernmental Fund to the LLMDs for increased landscapemaintenance and consulting services through FY 20222023.DISCUSSIONDuring the July 7, 2021, public hearing to approve the annual FY 20212022 assessment rates andbudgets for all LLMDs, staff reported to City Council that a reduction in services for Rolling Hills,Paradise Valley, and North Cordelia was required due to projected budget deficits if the districtscontinued to provide landscape services at the existing FY 20202021 level. Staff informed council thata comprehensive review of all the districts would be conducted in the coming year. On December 21, 2021, staff presented a new service contract with reduced scopes of work for eachdistrict and reported that a community engagement process and Proposition 218 vote on the questionof whether to increase assessments beginning FY 20232024 to provide an enhanced level of servicewould be brought to the districts’ property owners during FY 20222023. Council approved the contractsand directed staff to explore funding options to supplement the districts’ revenue and allow for theprovision of services comparable to the level of services provided in FY 20202021 while thecommunity engagement process and Proposition 218 vote were carried out.Staff identified six possible courses of action:1A. A loan from the Intergovernmental Loan Fund to supplement the districts’ revenue for theremainder of FY 20212022 with an expedited community engagement process andcompleted Proposition 218 vote by June 30, 2022.1B. A loan from the Intergovernmental Loan Fund to supplement the districts’ revenue for theremainder of FY 20212022 through FY 20222023 with a full community engagement processand completed Proposition 218 vote by June 30, 2023.2A. A contribution from the General Fund to supplement the districts’ revenue for theremainder of FY 20212022 with an expedited community engagement process andcompleted Proposition 218 vote by June 30, 2022.2B. A contribution from the General Fund to supplement the districts’ revenue for theremainder of FY 20212022 through FY 20222023 with a full community engagement processand completed Proposition 218 vote by June 30, 2023.3A. No additional funding with an expedited community engagement process and completedProposition 218 vote by June 30, 2022.3B. No additional funding with a full community engagement process and completedProposition 218 vote by June 30, 2023.The six options were presented to the residents of Paradise Valley and North Cordelia on January 25,2022, and to the residents of Rolling Hills on January 26, 2022, during two virtual town hall meetings.None of the options were either favored or opposed by a distinguishable majority of attendees at eithermeeting.On February 1, 2022, council held a special meeting to receive feedback from residents and toconsider the six options. Option 1B was approved by a 61 vote and staff was directed to return with aproposed resolution to execute loans of $500,000 to LLMD No. 7 – Rolling Hills, $175,000 to LLMDNo. 11 – Paradise Valley North, and $130,000 to LLMD No. 13 – North Cordelia, for a fiveyear term at0% interest. These loans would allow the districts to begin providing increased services as early asMarch 2022. Staff returned to council with the proposed resolution for the loans on March 1, 2022. Councildetermined that an additional 60 days of community engagement prior to issuing the loans wasnecessary to confirm if property owners in these districts support receiving and repaying the loans.The additional community engagement required the district to postpone the provision of enhancedservices until May 2022. Staff recalculated the total shortfall in each district to accommodate the newanticipated start date, and to include new projections and unexpected FY 20212022 expenditures thatwere not previously accounted for. The new shortfall in each district was calculated at $445,000 inLLMD No. 7, $182,000 in LLMD No. 11, and $159,000 in LLMD No. 13. It was determined that the shortfall in each district would be proportionately funded by the district andthe General Fund. The General Fund would contribute a sum equivalent to the proportion of the regularGeneral Fund contribution budgeted in FY 20212022 in each district. The General Fund and districtshares are as follows: District GF Share ofFY2122 Budget TotalShortfall GF Share ofShortfall District Shareof ShortfallLLMD No. 7 8%$445,000 $35,000 $410,000LLMD No. 11 4%$182,000 $7,000 $175,000LLMD No. 13 5%$159,000 $8,000 $151,000TOTAL17%$786,000 $50,000 $736,000On April 1, 2022, staff and its consultant, NBS Government Finance Group (NBS), released informationregarding the required loan amounts and an online poll was posted on the CivicMic.com/cityoffairfield/website. The poll sought to assess the property owners’ level of support for, or opposition to, receiving aloan and paying a greater assessment rate for five years to repay the loan. Property owners werenotified of the new website posting and poll via postcard and email notification for those whosubscribed to receive electronic communications.The postcard and email notification also invited the property owners to attend a virtual communitymeeting on April 18, 2022, at 6 p.m. The twohour community meeting was attended by 90 members ofthe public. During the meeting, City staff presented a brief history of each district, the updated proposedloan amounts of $410,000 for LLMD No. 7, $175,000 for LLMD No. 11, and $151,000 for LLMD No.13, which would allow the districts to provide increased services beginning in May 2022, the fiveyearloan repayment schedule, and the four possible service and assessment rate outcomes for fiscal years20222023 through 20272028. These outcomes would be determined based on their support for, oropposition to, the loan and future Proposition 218 vote for increased assessments. NBS presentedgeneral legislative and technical information about LLMDs, provided the initial results of a previouslyreleased general survey and of the current poll, and advised property owners on how they canparticipate in local workgroups to help establish future assessments and services. Attendees wereencouraged to participate in the poll prior to the closing date of April 22, 2022. The poll questions andsummarized responses from each district are attached to this report for reference. Findings of the additional 60day community engagement effort are as follows:LLMD No. 7 – Rolling HillsStaff did not receive a sufficient amount of feedback from the attendees who represented this district atthe community meeting to determine if the majority of property owners in LLMD No. 7 are in support of,or in opposition to, receiving and repaying the $410,000 loan.110 people participated in the poll for LLMD No. 7. 60% of participants either strongly agreed oragreed that they support the loan, and 61% of participants either strongly agreed or agreed that theyare willing to pay a higher assessment for five years to repay the loan and to receive enhancedlandscaping. LLMD No. 11 – Paradise Valley NorthStaff did not receive a sufficient amount of feedback from the attendees who represented this district at the community meeting to determine if the majority of property owners in LLMD No. 11 are in support of, or in opposition to, receiving and repaying the $175,000 loan.

Thirtyfour people participated in the poll for LLMD No. 11. 50% of participants either strongly agreed or agreed that they support the loan, and 50% of participants either strongly agreed or agreed that they are willing to pay a higher assessment for five years to repay the loan and to receive enhanced landscaping.

LLMD No. 13 – North Cordelia
Staff did not receive a sufficient amount of feedback from the attendees who represented this district at the community meeting to determine if the majority of property owners in LLMD No. 13 are in support of, or in opposition to, receiving and repaying the $151,000 loan.

Twentyone people participated in the poll for LLMD No. 13. 52% of participants either strongly agreed or agreed that they support the loan, and 52% of participants either strongly agreed or agreed that they are willing to pay a higher assessment for five years to repay the loan and to receive enhanced landscaping.

Approval of these resolutions will authorize three contributions and budget transfers totaling $50,000 from the General Fund which will be disbursed as follows: $35,000 to LLMD No. 7 – Rolling Hills, $7,000 to LLMD No. 11 – Paradise Valley North, and $8,000 to LLMD No. 13 – North Cordelia.

Additionally, the resolutions will authorize three loans and budget transfers totaling $736,000 from the Intergovernmental Loan Fund which will be disbursed as follows: $410,000 to LLMD No. 7 – Rolling Hills, $175,000 to LLMD No. 11 – Paradise Valley North, and $151,000 to LLMD No. 13 – North Cordelia. Each loan will be repayable over five years in equal annual installments beginning in FY 2023 2024 and will not bear interest. For each loan, repayment will occur from assessment revenues available either as a result of increased assessments approved pursuant to a Proposition 218 proceeding or a reduction in services.

FINANCIAL IMPACT
The total authorization for the three contributions from the General Fund (Fund 011) is $50,000, which will be disbursed as follows: $35,000 to LLMD No. 7 – Rolling Hills (Fund 077, Division 99, Responsibility Code 000), $7,000 to LLMD No. 11 – Paradise Valley North (Fund 081, Division 99, Responsibility Code 000), and $8,000 to LLMD No. 13 – North Cordelia (Fund 085, Division 99, Responsibility Code 000)
The total authorization for the three loans from the Intergovernmental Loan Fund (Fund 551) is $736,000 which will be disbursed as follows: $410,000 to LLMD No. 7 – Rolling Hills (Fund 077, Division 99, Responsibility Code 000), $175,000 to LLMD No. 11 – Paradise Valley North (Fund 081, Division 99, Responsibility Code 000), and $151,000 to LLMD No. 13 – North Cordelia (Fund 085, Division 99, Responsibility Code 000). A budget adjustment from the General Fund (Fund 011) to the Intergovernmental Loan Fund (Fund 551) is needed to fund this loan.

The General Fund will forfeit less than 1%, or approximately $20,000, of potential interest earnings.

However, these forfeited earnings do not pose a financial hardship to the General Fund.

PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
Virtual community meetings for the property owners in Paradise Valley and North Cordelia were held on January 25, 2022, for the property owners in Rolling Hills on January 26, 2022, and for the property owners in all three districts on April 18, 2022.

ALTERNATIVE ACTION
Council may choose not to approve the loans. However, if the loans are not approved, landscape maintenance services will continue to be provided at reduced levels through FY 20222023.

Packet Page 82 of 338

Agenda Item No: 15.AGENDA REPORTDATE:May 3, 2022 TO:Mayor and City CouncilFROM:David Gassaway, Interim City ManagerSUBJECT:Resolution 202297 of the City Council of the City of Fairfield Authorizing a Loan andBudget Transfer from the Intergovernmental Loan Fund to Landscaping and LightingMaintenance District No. 7 – Rolling Hills for Increased Landscape Maintenance andConsulting Services through Fiscal Year 20222023 and Authorizing an Update to theFiscal Year 20212022 Budget; andResolution 202298 of the City Council of the City of Fairfield Authorizing a Loan andBudget Transfer from the Intergovernmental Loan Fund to Landscaping and LightingMaintenance District No. 11 – Paradise Valley North for Increased LandscapeMaintenance and Consulting Services through Fiscal Year 20222023 and Authorizingan Update to the Fiscal Year 20212022 Budget; andResolution 202299 of the City Council of the City of Fairfield Authorizing a Loan andBudget Transfer from the Intergovernmental Loan Fund to Landscaping and LightingMaintenance District No. 13 – North Cordelia for Increased Landscape Maintenanceand Consulting Services through Fiscal Year 20222023 and Authorizing an Update tothe Fiscal Year 20212022 BudgetRECOMMENDED ACTIONReceive report, open discussion, adopt resolutions or provide direction to staff.STATEMENT OF ISSUEThe fiscal year (FY) 20212022 assessment revenue and the FY 20222023 anticipated assessmentrevenue for Landscaping and Lighting Maintenance Districts (LLMDs) No. 7 – Rolling Hills (RollingHills), No. 11 – Paradise Valley North (Paradise Valley), and No. 13 – North Cordelia (North Cordelia)are insufficient to provide a level of landscape maintenance services comparable to the level ofservices provided in FY 20202021. Approval of these resolutions will authorize three loans and budgettransfers totaling $736,000 from the Intergovernmental Fund to the LLMDs for increased landscapemaintenance and consulting services through FY 20222023.DISCUSSIONDuring the July 7, 2021, public hearing to approve the annual FY 20212022 assessment rates andbudgets for all LLMDs, staff reported to City Council that a reduction in services for Rolling Hills,Paradise Valley, and North Cordelia was required due to projected budget deficits if the districtscontinued to provide landscape services at the existing FY 20202021 level. Staff informed council thata comprehensive review of all the districts would be conducted in the coming year. On December 21, 2021, staff presented a new service contract with reduced scopes of work for eachdistrict and reported that a community engagement process and Proposition 218 vote on the questionof whether to increase assessments beginning FY 20232024 to provide an enhanced level of servicewould be brought to the districts’ property owners during FY 20222023. Council approved the contractsand directed staff to explore funding options to supplement the districts’ revenue and allow for theprovision of services comparable to the level of services provided in FY 20202021 while thecommunity engagement process and Proposition 218 vote were carried out.Staff identified six possible courses of action:1A. A loan from the Intergovernmental Loan Fund to supplement the districts’ revenue for theremainder of FY 20212022 with an expedited community engagement process andcompleted Proposition 218 vote by June 30, 2022.1B. A loan from the Intergovernmental Loan Fund to supplement the districts’ revenue for theremainder of FY 20212022 through FY 20222023 with a full community engagement processand completed Proposition 218 vote by June 30, 2023.2A. A contribution from the General Fund to supplement the districts’ revenue for theremainder of FY 20212022 with an expedited community engagement process andcompleted Proposition 218 vote by June 30, 2022.2B. A contribution from the General Fund to supplement the districts’ revenue for theremainder of FY 20212022 through FY 20222023 with a full community engagement processand completed Proposition 218 vote by June 30, 2023.3A. No additional funding with an expedited community engagement process and completedProposition 218 vote by June 30, 2022.3B. No additional funding with a full community engagement process and completedProposition 218 vote by June 30, 2023.The six options were presented to the residents of Paradise Valley and North Cordelia on January 25,2022, and to the residents of Rolling Hills on January 26, 2022, during two virtual town hall meetings.None of the options were either favored or opposed by a distinguishable majority of attendees at eithermeeting.On February 1, 2022, council held a special meeting to receive feedback from residents and toconsider the six options. Option 1B was approved by a 61 vote and staff was directed to return with aproposed resolution to execute loans of $500,000 to LLMD No. 7 – Rolling Hills, $175,000 to LLMDNo. 11 – Paradise Valley North, and $130,000 to LLMD No. 13 – North Cordelia, for a fiveyear term at0% interest. These loans would allow the districts to begin providing increased services as early asMarch 2022. Staff returned to council with the proposed resolution for the loans on March 1, 2022. Councildetermined that an additional 60 days of community engagement prior to issuing the loans wasnecessary to confirm if property owners in these districts support receiving and repaying the loans.The additional community engagement required the district to postpone the provision of enhancedservices until May 2022. Staff recalculated the total shortfall in each district to accommodate the newanticipated start date, and to include new projections and unexpected FY 20212022 expenditures thatwere not previously accounted for. The new shortfall in each district was calculated at $445,000 inLLMD No. 7, $182,000 in LLMD No. 11, and $159,000 in LLMD No. 13. It was determined that the shortfall in each district would be proportionately funded by the district andthe General Fund. The General Fund would contribute a sum equivalent to the proportion of the regularGeneral Fund contribution budgeted in FY 20212022 in each district. The General Fund and districtshares are as follows: District GF Share ofFY2122 Budget TotalShortfall GF Share ofShortfall District Shareof ShortfallLLMD No. 7 8%$445,000 $35,000 $410,000LLMD No. 11 4%$182,000 $7,000 $175,000LLMD No. 13 5%$159,000 $8,000 $151,000TOTAL17%$786,000 $50,000 $736,000On April 1, 2022, staff and its consultant, NBS Government Finance Group (NBS), released informationregarding the required loan amounts and an online poll was posted on the CivicMic.com/cityoffairfield/website. The poll sought to assess the property owners’ level of support for, or opposition to, receiving aloan and paying a greater assessment rate for five years to repay the loan. Property owners werenotified of the new website posting and poll via postcard and email notification for those whosubscribed to receive electronic communications.The postcard and email notification also invited the property owners to attend a virtual communitymeeting on April 18, 2022, at 6 p.m. The twohour community meeting was attended by 90 members ofthe public. During the meeting, City staff presented a brief history of each district, the updated proposedloan amounts of $410,000 for LLMD No. 7, $175,000 for LLMD No. 11, and $151,000 for LLMD No.13, which would allow the districts to provide increased services beginning in May 2022, the fiveyearloan repayment schedule, and the four possible service and assessment rate outcomes for fiscal years20222023 through 20272028. These outcomes would be determined based on their support for, oropposition to, the loan and future Proposition 218 vote for increased assessments. NBS presentedgeneral legislative and technical information about LLMDs, provided the initial results of a previouslyreleased general survey and of the current poll, and advised property owners on how they canparticipate in local workgroups to help establish future assessments and services. Attendees wereencouraged to participate in the poll prior to the closing date of April 22, 2022. The poll questions andsummarized responses from each district are attached to this report for reference. Findings of the additional 60day community engagement effort are as follows:LLMD No. 7 – Rolling HillsStaff did not receive a sufficient amount of feedback from the attendees who represented this district atthe community meeting to determine if the majority of property owners in LLMD No. 7 are in support of,or in opposition to, receiving and repaying the $410,000 loan.110 people participated in the poll for LLMD No. 7. 60% of participants either strongly agreed oragreed that they support the loan, and 61% of participants either strongly agreed or agreed that theyare willing to pay a higher assessment for five years to repay the loan and to receive enhancedlandscaping. LLMD No. 11 – Paradise Valley NorthStaff did not receive a sufficient amount of feedback from the attendees who represented this district atthe community meeting to determine if the majority of property owners in LLMD No. 11 are in support of,or in opposition to, receiving and repaying the $175,000 loan.Thirtyfour people participated in the poll for LLMD No. 11. 50% of participants either strongly agreed oragreed that they support the loan, and 50% of participants either strongly agreed or agreed that theyare willing to pay a higher assessment for five years to repay the loan and to receive enhancedlandscaping. LLMD No. 13 – North CordeliaStaff did not receive a sufficient amount of feedback from the attendees who represented this district atthe community meeting to determine if the majority of property owners in LLMD No. 13 are in support of,or in opposition to, receiving and repaying the $151,000 loan.Twentyone people participated in the poll for LLMD No. 13. 52% of participants either strongly agreedor agreed that they support the loan, and 52% of participants either strongly agreed or agreed that theyare willing to pay a higher assessment for five years to repay the loan and to receive enhancedlandscaping. Approval of these resolutions will authorize three contributions and budget transfers totaling $50,000from the General Fund which will be disbursed as follows: $35,000 to LLMD No. 7 – Rolling Hills,$7,000 to LLMD No. 11 – Paradise Valley North, and $8,000 to LLMD No. 13 – North Cordelia.Additionally, the resolutions will authorize three loans and budget transfers totaling $736,000 from theIntergovernmental Loan Fund which will be disbursed as follows: $410,000 to LLMD No. 7 – RollingHills, $175,000 to LLMD No. 11 – Paradise Valley North, and $151,000 to LLMD No. 13 – NorthCordelia. Each loan will be repayable over five years in equal annual installments beginning in FY 20232024 and will not bear interest. For each loan, repayment will occur from assessment revenuesavailable either as a result of increased assessments approved pursuant to a Proposition 218proceeding or a reduction in services.FINANCIAL IMPACTThe total authorization for the three contributions from the General Fund (Fund 011) is $50,000, whichwill be disbursed as follows: $35,000 to LLMD No. 7 – Rolling Hills (Fund 077, Division 99,Responsibility Code 000), $7,000 to LLMD No. 11 – Paradise Valley North (Fund 081, Division 99,Responsibility Code 000), and $8,000 to LLMD No. 13 – North Cordelia (Fund 085, Division 99,Responsibility Code 000)The total authorization for the three loans from the Intergovernmental Loan Fund (Fund 551) is $736,000which will be disbursed as follows: $410,000 to LLMD No. 7 – Rolling Hills (Fund 077, Division 99,Responsibility Code 000), $175,000 to LLMD No. 11 – Paradise Valley North (Fund 081, Division 99,Responsibility Code 000), and $151,000 to LLMD No. 13 – North Cordelia (Fund 085, Division 99,Responsibility Code 000). A budget adjustment from the General Fund (Fund 011) to theIntergovernmental Loan Fund (Fund 551) is needed to fund this loan.The General Fund will forfeit less than 1%, or approximately $20,000, of potential interest earnings.However, these forfeited earnings do not pose a financial hardship to the General Fund.PUBLIC CONTACT/ADVISORY BODY RECOMMENDATIONVirtual community meetings for the property owners in Paradise Valley and North Cordelia were held onJanuary 25, 2022, for the property owners in Rolling Hills on January 26, 2022, and for the propertyowners in all three districts on April 18, 2022.ALTERNATIVE ACTION Council may choose not to approve the loans. However, if the loans are not approved, landscape maintenance services will continue to be provided at reduced levels through FY 20222023.

STAFF CONTACT
Chris Lewis, Management Analyst
(707) 4287089
[email protected]
COORDINATED WITH
City Attorney's Office, Finance Department
ATTACHMENTS:

Description
Attachment 1: Poll Responses LLMD No. 7 Rolling Hills Attachment 2: Poll Responses LLMD No. 11 Paradise Valley North Attachment 3: Poll Responses LLMD No. 13 North Cordelia Attachment 4: Proposed Resolution LLMD No. 7 Rolling Hills Attachment 5: Proposed Resolution LLMD No. 11 Paradise Valley North Attachment 6: Proposed Resolution LLMD No. 13 North Cordelia REVIEWERS:

Reviewer Action Date
Panganiban, Ryan Approved 4/26/2022 7:20 PM
Kaushal, Paul Approved 4/26/2022 7:37 PM
Alexander, Amber Approved 4/26/2022 7:49 PM
Alexander, Amber Approved 4/26/2022 7:49 PM
Packet Page 83 of 338

Fairfield LLMD Loan Poll
1 / 4
100.00%110

0.00%0

0.00%0
Q1 Please select your community from the list below:

Answered: 110 Skipped: 0
Total Respondents: 110
0%10%20%30%40%50%60%70%80%90%100%
Rolling Hills
LLMD No. 7
Paradise
Valley LLMD ...

North Cordelia
LLMD No. 13

ANSWER CHOICES RESPONSES
Rolling Hills LLMD No. 7
Paradise Valley LLMD No. 11
North Cordelia LLMD No. 13
LLMD NO. 7 - ROLLING HILLS
Packet Page 84 of 338Attachment 1 Page 1 of 4

Fairfield LLMD Loan Poll
2 / 4

40.91%45

19.09%21

3.64%4

7.27%8

29.09%32
Q2 I support a loan to subsidize the revenue needed to maintain services comparable to the fiscal year 2020/21 and avoid reductions in the quality of landscaping levels in my neighborhood.

Answered: 110 Skipped: 0
TOTAL 110
0%10%20%30%40%50%60%70%80%90%100%
Strongly agree
Agree
Neither agree
nor disagree
Disagree
Strongly
disagree

ANSWER CHOICES RESPONSES
Strongly agree
Agree
Neither agree nor disagree
Disagree
Strongly disagree
LLMD NO. 7 - ROLLING HILLS
Packet Page 85 of 338Attachment 1 Page 2 of 4

Fairfield LLMD Loan Poll
3 / 4

40.00%44

20.91%23

5.45%6

3.64%4

30.00%33
Q3 I am willing to pay a higher assessment for five years to pay both the new assessment amount for a new district and to repay the loan needed to maintain landscaping comparable to fiscal year 2020/21 level services.

Answered: 110 Skipped: 0
TOTAL 110
0%10%20%30%40%50%60%70%80%90%100%
Strongly agree
Agree
Neither agree
nor disagree
Disagree
Strongly
disagree

ANSWER CHOICES RESPONSES
Strongly agree
Agree
Neither agree nor disagree
Disagree
Strongly disagree
LLMD NO. 7 - ROLLING HILLS
Packet Page 86 of 338Attachment 1 Page 3 of 4

Fairfield LLMD Loan Poll
4 / 4

70.91%78

29.09%32
Q4 I am aware that if a new district is not formed, I will still have to pay back the loan over five years.

Answered: 110 Skipped: 0
TOTAL 110
0%10%20%30%40%50%60%70%80%90%100%
Yes
No

ANSWER CHOICES RESPONSES
Yes
No
LLMD NO. 7 - ROLLING HILLS
Packet Page 87 of 338Attachment 1 Page 4 of 4

Fairfield LLMD Loan Poll
1 / 4

0.00%0
100.00%34

0.00%0
Q1 Please select your community from the list below:

Answered: 34 Skipped: 0
Total Respondents: 34
0%10%20%30%40%50%60%70%80%90%100%
Rolling Hills
LLMD No. 7
Paradise
Valley LLMD ...

North Cordelia
LLMD No. 13

ANSWER CHOICES RESPONSES
Rolling Hills LLMD No. 7
Paradise Valley LLMD No. 11
North Cordelia LLMD No. 13
LLMD NO. 11 - PARADISE VALLEY NORTH
Packet Page 88 of 338Attachment 2 Page 1 of 4

Fairfield LLMD Loan Poll
2 / 4

32.35%11

17.65%6

14.71%5

20.59%7

14.71%5
Q2 I support a loan to subsidize the revenue needed to maintain services comparable to the fiscal year 2020/21 and avoid reductions in the quality of landscaping levels in my neighborhood.

Answered: 34 Skipped: 0
TOTAL 34
0%10%20%30%40%50%60%70%80%90%100%
Strongly agree
Agree
Neither agree
nor disagree
Disagree
Strongly
disagree

ANSWER CHOICES RESPONSES
Strongly agree
Agree
Neither agree nor disagree
Disagree
Strongly disagree
LLMD NO. 11 - PARADISE VALLEY NORTH
Packet Page 89 of 338Attachment 2 Page 2 of 4

Fairfield LLMD Loan Poll
3 / 4

26.47%9

23.53%8

14.71%5

20.59%7
Q3 I am willing to pay a higher assessment for five years to pay both the new assessment amount for a new district and to repay the loan needed to maintain landscaping comparable to fiscal year 2020/21 level services.

Answered: 34 Skipped: 0
TOTAL 34
0%10%20%30%40%50%60%70%80%90%100%
Strongly agree
Agree
Neither agree
nor disagree
Disagree
Strongly
disagree

ANSWER CHOICES RESPONSES
Strongly agree
Agree
Neither agree nor disagree
Disagree
Strongly disagree
LLMD NO. 11 - PARADISE VALLEY NORTH
Packet Page 90 of 338Attachment 2 Page 3 of 4

Fairfield LLMD Loan Poll
4 / 4

58.82%20

41.18%14
Q4 I am aware that if a new district is not formed, I will still have to pay back the loan over five years.

Answered: 34 Skipped: 0
TOTAL 34
0%10%20%30%40%50%60%70%80%90%100%
Yes
No

ANSWER CHOICES RESPONSES
Yes
No
LLMD NO. 11 - PARADISE VALLEY NORTH
Packet Page 91 of 338Attachment 2 Page 4 of 4

Fairfield LLMD Loan Poll
1 / 4

0.00%0

0.00%0
100.00%21
Q1 Please select your community from the list below:

Answered: 21 Skipped: 0
Total Respondents: 21
0%10%20%30%40%50%60%70%80%90%100%
Rolling Hills
LLMD No. 7
Paradise
Valley LLMD ...

North Cordelia
LLMD No. 13

ANSWER CHOICES RESPONSES
Rolling Hills LLMD No. 7
Paradise Valley LLMD No. 11
North Cordelia LLMD No. 13
LLMD NO. 13 - NORTH CORDELIA
Packet Page 92 of 338Attachment 3 Page 1 of 4

Fairfield LLMD Loan Poll
2 / 4

33.33%7

19.05%4

14.29%3

4.76%1

28.57%6
Q2 I support a loan to subsidize the revenue needed to maintain services comparable to the fiscal year 2020/21 and avoid reductions in the quality of landscaping levels in my neighborhood.

Answered: 21 Skipped: 0
TOTAL 21
0%10%20%30%40%50%60%70%80%90%100%
Strongly agree
Agree
Neither agree
nor disagree
Disagree
Strongly
disagree

ANSWER CHOICES RESPONSES
Strongly agree
Agree
Neither agree nor disagree
Disagree
Strongly disagree
LLMD NO. 13 - NORTH CORDELIA
Packet Page 93 of 338Attachment 3 Page 2 of 4

Fairfield LLMD Loan Poll
3 / 4

28.57%6

23.81%5

9.52%2

28.57%6
Q3 I am willing to pay a higher assessment for five years to pay both the new assessment amount for a new district and to repay the loan needed to maintain landscaping comparable to fiscal year 2020/21 level services.

Answered: 21 Skipped: 0
TOTAL 21
0%10%20%30%40%50%60%70%80%90%100%
Strongly agree
Agree
Neither agree
nor disagree
Disagree
Strongly
disagree

ANSWER CHOICES RESPONSES
Strongly agree
Agree
Neither agree nor disagree
Disagree
Strongly disagree
LLMD NO. 13 - NORTH CORDELIA
Packet Page 94 of 338Attachment 3 Page 3 of 4

Fairfield LLMD Loan Poll
4 / 4

61.90%13

38.10%8
Q4 I am aware that if a new district is not formed, I will still have to pay back the loan over five years.

Answered: 21 Skipped: 0
TOTAL 21
0%10%20%30%40%50%60%70%80%90%100%
Yes
No

ANSWER CHOICES RESPONSES
Yes
No
LLMD NO. 13 - NORTH CORDELIA
Packet Page 95 of 338Attachment 3 Page 4 of 4

CITY OF FAIRFIELD

RESOLUTION NO. 2022-97

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FAIRFIELD AUTHORIZING A LOAN AND

BUDGET TRANSFER FROM THE INTERGOVERNMENTAL LOAN FUND TO LANDSCAPING AND LIGHTING MAINTENANCE DISTRICT NO. 7 – ROLLING HILLS FOR INCREASED LANDSCAPE MAINTENANCE AND CONSULTING SERVICES THROUGH FISCAL YEAR 2022-2023 AND AUTHORIZING AN UPDATE TO THE FISCAL YEAR 2021-2022 BUDGET

WHEREAS, on July 7, 2021, staff informed the City Council that fiscal year (FY) 2021-2022 assessment revenue and (FY) 2022-2023 anticipated assessment revenue for Landscaping and Lighting Maintenance District (LLMD) No. 7 – Rolling Hills (Rolling Hills) are insufficient to provide a level of landscape maintenance services comparable to the level of services provided in FY 2020-2021; and

WHEREAS, on December 21, 2021, the council approved a new landscape maintenance service contract with a reduced scope of work for the district and directed staff to explore options to provide additional funding to the district for the provision of services comparable to the level of services provided in FY 2020-2021 while a community engagement and Proposition 218 process was conducted; and

WHEREAS, the council may approve intergovernmental fund loans in accordance with the Interfund Loan Policy; and

WHEREAS, the council may set the interest rate at 0% in accordance with Resolution 1991-213B; and

WHEREAS, on February 1, 2022, the council held a special meeting and declared its intent to approve a $500,000 loan from the Intergovernmental Loan Fund to LLMD No. 7 – Rolling Hills which would be repayable over five years in equal annual installments beginning in FY 2023-2024 with 0% interest for the purposes of providing an enhanced level of service beginning in March 2022, through FY 2022-2023 and to cover consulting fees; and

WHEREAS, on March 1, 2022, council determined that an additional 60 days of community engagement prior to issuing the loans was necessary to confirm if property owners in the district support receiving and repaying the loan; and

WHEREAS, the shortfall was recalculated to be $445,000 based on enhanced levels of service beginning in May 2022, and the inclusion of new projections and unexpected FY 2021-2022 expenditures that were not previously accounted for; and

Packet Page 96 of 338Attachment 4 Page 1 of 3

RES. NO. 2022-97

Page 2 ends

WHEREAS, the General Fund will contribute $35,000, or 8%, of the total shortfall, which is proportionate to the regular General Fund contribution budgeted in FY 2021-2022; and

WHEREAS, the new loan amount required for the district is $410,000; and

WHEREAS, a community poll was conducted from April 1, 2022, to April 22, 2022, to ascertain property owners’ level of support for, or opposition to, receiving a loan and paying a greater assessment rate for five years to repay the loan; and

WHEREAS, on April 18, 2022, a town hall was held to provide property owners with information regarding the proposed loan and potential future service and assessment levels; and

WHEREAS, providing for the loan to bear 0% interest will not pose a financial hardship to the General Fund; and

WHEREAS, funding was not allocated in the City’s approved FY 2021-2022 Budget thus requiring an adjustment in the amount of $410,000 to cover the loan amount; and

WHEREAS, the revised appropriation constitutes an update to the FY 2021-2022 Budget approved pursuant to Resolution No. 2021-126.

NOW, THEREFORE, THE COUNCIL OF THE CITY OF FAIRFIELD HEREBY RESOLVES:

Section 1. The council hereby approves a contribution, budget adjustment, and transfer of $35,000 from the General Fund (Fund 011) to LLMD No. 7 (Fund 077) – Rolling Hills.

Section 2. The council hereby approves a budget adjustment and transfer of $410,000 from the General Fund (Fund 011) to the Intergovernmental Loan Fund (Fund 551).

Section 3. The council hereby approves a loan, budget adjustment and transfer of $410,000 from the Intergovernmental Loan Fund (Fund 551) to LLMD No. 7 (Fund 077) – Rolling Hills.

Section 4. The loan shall be issued with a 0% interest rate and shall be repayable over five years in equal annual installments beginning in FY 2023-2024.

Section 5. The loan repayment will occur from assessment revenues available either as a result of increased assessments approved pursuant to a Proposition 218 proceeding or a reduction in services.

Section 6. The director of public works is hereby authorized to do all things necessary to implement this resolution.

Packet Page 97 of 338Attachment 4 Page 2 of 3

RES. NO. 2022-97

Page 3 ends

PASSED AND ADOPTED this 3rd day of May 2022, by the following vote:

AYES: COUNCILMEMBERS: PRICE / BERTANI / MOY / PANDURO / TIMM / TONNESEN / VACCARO

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

MAYOR

ATTEST:

____________________________

CITY CLERK
Packet Page 98 of 338Attachment 4 Page 3 of 3

CITY OF FAIRFIELD

RESOLUTION NO. 2022-98

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FAIRFIELD AUTHORIZING A LOAN AND

BUDGET TRANSFER FROM THE INTERGOVERNMENTAL LOAN FUND TO LANDSCAPING AND LIGHTING MAINTENANCE DISTRICT NO. 11 – PARADISE VALLEY NORTH FOR INCREASED LANDSCAPE MAINTENANCE AND CONSULTING SERVICES THROUGH FISCAL YEAR 2022-2023 AND AUTHORIZING AN UPDATE TO THE FISCAL YEAR 2021 -2022 BUDGET

WHEREAS, on July 7, 2021, staff informed the City Council that fiscal year (FY) 2021-2022 assessment revenue and FY 2022-2023 anticipated assessment revenue for Landscaping and Lighting Maintenance District (LLMD) No. 11 – Paradise Valley North (Paradise Valley) are insufficient to provide a level of landscape maintenance services comparable to the level of services provided in FY 2020-2021; and

WHEREAS, the council may approve intergovernmental fund loans in accordance with the Interfund Loan Policy; and

WHEREAS, the council may set the interest rate at 0% in accordance with Resolution 1991-213B; and

WHEREAS, on February 1, 2022, the council held a special meeting and declared its intent to approve a $175,000 loan from the Intergovernmental Loan Fund to LLMD No. 11 – Paradise Valley North which would be repayable over five years in equal annual installments beginning in FY 2023-2024 with 0% interest for the purposes of providing an enhanced level of service beginning in March 2022, through FY 2022-2023 and to cover consulting fees; and

WHEREAS, the shortfall was recalculated to be $182,000 based on enhanced levels of service beginning in May 2022, and the inclusion of new projections and unexpected FY 2021 -2022 expenditures that were not previously accounted for; and

Packet Page 99 of 338Attachment 5 Page 1 of 3

RES. NO. 2022-98

Page 2 ends

WHEREAS, the General Fund will contribute $7,000, or 4%, of the total shortfall, which is proportionate to the regular General Fund contribution budgeted in FY 2021 -2022; and

WHEREAS, the loan amount required for the district remains at $175,000; and

WHEREAS, on April 18, 2022, a town hall was held to provide property owners with information regarding the proposed loan and potential future service and assessment levels; and

WHEREAS, providing for the loan to bear 0% interest will not pose a financial hardship to the General Fund; and

WHEREAS, funding was not allocated in the City’s approved FY 2021-2022 Budget thus requiring an adjustment in the amount of $175,000 to cover the loan amount; and

WHEREAS, the revised appropriation constitutes an update to the 2021-2022 Budget approved pursuant to Resolution No. 2021-126.

NOW, THEREFORE, THE COUNCIL OF THE CITY OF FAIRFIELD HEREBY RESOLVES:

Section 1. The council hereby approves a contribution, budget adjustment, and transfer of $7,000 from the General Fund (Fund 011) to LLMD No. 11 (Fund 081) – Paradise Valley North.

Section 2. The council hereby approves a budget adjustment and transfer of $175,000 from the General Fund (Fund 011) to the Intergovernmental Loan Fund (Fund 551).

Section 3. The council hereby approves a loan, budget adjustment and transfer of $175,000 from the Intergovernmental Loan Fund (Fund 551) to LLMD No. 11 (Fund 081) – Paradise Valley North.

Section 4. The loan shall be issued with a 0% interest rate and shall be repayable over five years in equal annual installments beginning in FY 2023-2024.

Section 5. The loan repayment will occur from assessment revenues available either as a result of increased assessments approved pursuant to a Proposition 218 proceeding or a reduction in services.

Section 6. The director of public works is hereby authorized to do all things necessary to implement this resolution.

Packet Page 100 of 338Attachment 5 Page 2 of 3

RES. NO. 2022-98

Page 3 ends

PASSED AND ADOPTED this 3rd day of May 2022, by the following vote:

AYES: COUNCILMEMBERS: PRICE / BERTANI / MOY / PANDURO / TIMM / TONNESEN / VACCARO

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

MAYOR

ATTEST:

____________________________

CITY CLERK
Packet Page 101 of 338Attachment 5 Page 3 of 3

CITY OF FAIRFIELD

RESOLUTION NO. 2022-99

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FAIRFIELD AUTHORIZING A LOAN AND

BUDGET TRANSFER FROM THE INTERGOVERNMENTAL LOAN FUND TO LANDSCAPING AND LIGHTING MAINTENANCE DISTRICT NO. 13 – NORTH CORDELIA FOR INCREASED LANDSCAPE MAINTENANCE AND CONSULTING SERVICES THROUGH FISCAL YEAR 2022-2023 AND AUTHORIZING AN UPDATE TO THE FISCAL YEAR 2021-2022 BUDGET

WHEREAS, on July 7, 2021, staff informed the City Council that fiscal year (FY) 2021-2022 assessment revenue and FY 2022-2023 anticipated assessment revenue for Landscaping and Lighting Maintenance District (LLMD) No. 13 – North Cordelia (North Cordelia) are insufficient to provide a level of landscape maintenance services comparable to the level of services provided in FY 2020-2021; and

WHEREAS, the council may approve intergovernmental fund loans in accordance with the Interfund Loan Policy; and

WHEREAS, the council may set the interest rate at 0% in accordance with Resolution 1991-213B; and

WHEREAS, on February 1, 2022, the council held a special meeting and declared its intent to approve a $130,000 loan from the Intergovernmental Loan Fund to LLMD No. 13 – North Cordelia which would be repayable over five years in equal annual installments beginning in FY 2023-2024 with 0% interest for the purposes of providing an enhanced level of service beginning in March 2022, through FY 2022-2023 and to cover consulting fees; and

WHEREAS, the shortfall was recalculated to be $159,000 based on enhanced levels of service beginning in May 2022, and the inclusion of new projections and unexpected FY 2021-2022 expenditures that were not previously accounted for; and Packet Page 102 of 338Attachment 6 Page 1 of 3

RES. NO. 2022-99

Page 2 ends

WHEREAS, the General Fund will contribute $8,000, or 5%, of the total shortfall, which is proportionate to the regular General Fund contribution budgeted in FY 2021 -2022; and

WHEREAS, the new loan amount required for the district is $151,000; and

WHEREAS, on April 18, 2022, a town hall was held to provide property owners with information regarding the proposed loan and potential future service and assessment levels; and

WHEREAS, providing for the loan to bear 0% interest will not pose a financial hardship to the General Fund; and

WHEREAS, funding was not allocated in the City’s approved FY 2021-2022 Budget thus requiring an adjustment in the amount of $151,000 to cover the loan amount; and

WHEREAS, the revised appropriation constitutes an update to the 2021-2022 Budget approved pursuant to Resolution No. 2021-126.

NOW, THEREFORE, THE COUNCIL OF THE CITY OF FAIRFIELD HEREBY RESOLVES:

Section 1. The council hereby approves a contribution, budget adjustment, and transfer of $35,000 from the General Fund (Fund 011) to LLMD No. 13 (Fund 085) – North Cordelia.

Section 2. The council hereby approves a budget adjustment and transfer of $151,000 from the General Fund (Fund 011) to the Intergovernmental Loan Fund (Fund 551).

Section 3. The council hereby approves a loan, budget adjustment and transfer of $151,000 from the Intergovernmental Loan Fund (Fund 551) to LLMD No. 13 (Fund 085) – North Cordelia.

Section 4. The loan shall be issued with a 0% interest rate and shall be repayable over five years in equal annual installments beginning in FY 2023-2024.

Section 5. The loan repayment will occur from assessment revenues available either as a result of increased assessments approved pursuant to a Proposition 218 proceeding or a reduction in services.

Section 6. The director of public works is hereby authorized to do all things necessary to implement this resolution.

Packet Page 103 of 338Attachment 6 Page 2 of 3

RES. NO. 2022-99

Page 3 ends

PASSED AND ADOPTED this 3rd day of May 2022, by the following vote:

AYES: COUNCILMEMBERS: PRICE / BERTANI / MOY / PANDURO / TIMM / TONNESEN / VACCARO

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

MAYOR

ATTEST:

____________________________

CITY CLERK
Packet Page 104 of 338Attachment 6 Page 3 of 3

Agenda Item No: 16.

AGENDA REPORT
DATE:May 3, 2022
TO:Mayor and City Council
FROM:David Gassaway, Interim City Manager
SUBJECT:Continued Resolution 202287 of the City Council of the City of Fairfield Approving the City's Fiscal Year 202021 Annual Comprehensive Financial Report and the Federal Awards Report (Single Audit)
RECOMMENDED ACTION
Adopt resolution.

STATEMENT OF ISSUE
This item was pulled from the April 19, 2022 to be continued. The City Council is being asked to approve the Annual Comprehensive Financial Report (ACFR) for Fiscal Year 202021, as well as the Federal Awards Report (Single Audit). The FY 202021 ACFR indicates the City’s financial condition as of June 30, 2021, and has been audited by Eide Bailly LLP, an independent firm of Certified Public Accountants. The FY 202021 Federal Awards Report indicates compliance applicable to major federal programs.

DISCUSSION
Each year an audit of the City’s financial statements (ACFR) and the City’s Federal Grants (Single Audit) is performed by a firm of Independent Certified Public Accountants in conformity with Generally Accepted Audit Standards (GAAS).

The ACFR covers all funds of the City and is prepared in accordance with Generally Accepted Accounting Principles (GAAP). It is considered a generalpurpose report, as its contents are intended to meet the needs of a broad range of user groups.

For the ACFR, the auditors have issued an unmodified opinion and the City received positive feedback from the auditors for the work performance and reports prepared by the Accounting Division.

Such an opinion reflects the auditors’ belief that the basic financial statements contained in these reports present fairly the financial position of the City of Fairfield (Attachment 2, Auditors’ Report,). The Federal Awards audit report was prepared and audited by the auditors. The City was found to be in compliance with the requirements of the Federal Office of Management and Budget (OMB) compliance supplement. The auditor did identify two instances of noncompliance, to which the City has responded with a corrective action plan to address these findings (Attachment 3, Federal Awards Report).

Packet Page 105 of 338

A good summary of the financial condition of the City is contained in the transmittal letter and the Management’s Discussion and Analysis (MD&A) of the ACFR, as well as in the City’s Popular Annual Financial Report (PAFR) for FY 202021, the latter being a summary of the ACFR and included as an attachment to this report. Additional supporting information related to the financial statements can be found in the notes to the financial statements of the ACFR. The following represents key financial positions and highlights of the City’s major funds:

General Fund: The fund balance increased from the prior year to the current year by $3.2 million to a balance of $52.3 million. This increase was mainly due to continued strength in, and higher than budgeted, sales, Measure P, and property taxes (revenues exceeded the budget by $9.5 million).

Expenditure savings related to staffing vacancies also contributed to an increase in fund balance. Of the $52.3 million fund balance, $10.4 million of this fund balance represents funding from the City Council approved Pension Stabilization Fund, which is a subfund of the General Fund ($6.7 million is restricted funding related to a Pension Trust Fund and $3.7 million is committed in the Pension Stabilization Fund for future payment of pension obligations).

Internal Service Fund Liabilities: As shown in the transmittal letter, the table below shows some of the key liabilities of the internal service funds and their associated levels of funding:

Workers'
Compensation
General
Liability
Other Post
Employment
Benefits
(OPEB)
Compensated
Absences
Cash Reserve $15,934,496 $3,748,385 $1,553,615 $5,570,126 Actuarial Liability $11,398,421 $3,597,828 $457,067 $18,815,275 % of Liability Funded 140%104%340%30%
Intragovernmental Loan Fund: The current assets of the Intragovernmental Loan Fund decreased by $1.5 million from $16.8 million to $15.3 million, primarily a result of the continued spending on the Heart of Fairfield Project. The balance mainly consists of $12 million in Loans receivable from the Successor Agency.

Water Funds: The net position of the Water Fund increased by $7.7 million during FY 202021 from $62.8 million to $70.5 million, mainly due to increased water sales and a recent water rate increase. As discussed below, this fund has recognized its share of the City’s Net Pension Liability of $17.3 million (as required by Governmental Accounting Standards Board (GASB) 68).

Golf Funds: The Golf Fund shows an accumulated net position of $14 million, mainly consisting of the net capital assets of the golf courses themselves of $13 million. Remaining bond liabilities total $1.4 million; these bonds continue to be paid down per the debt service schedule and will be paid off in 2023.

Transit:The net position of the Transit Fund decreased by $1.4 million during FY 202021, mainly due to the pandemic and reduced ridership and revenue during the year. As discussed below, as required by GASB 68, this fund has recognized its share of the City’s Net Pension Liability of $2.4 million (including deferred inflows and outflows) which resulted in the fund ending with a negative unrestricted net position of $2.4 million.

CalPERS and Net Pension Liability: As of June 30, 2021, the City’s combined total Net Pension Packet Page 106 of 338

CalPERS and Net Pension Liability: As of June 30, 2021, the City’s combined total Net Pension Liability (NPL) is approximately $197 million, an increase of $13 million (7%) over the prior fiscal year.

The NPL is a result of comparing total pension plan assets of $499 million to the total pension liability of $696 million, which reflects that approximately 71.7% of the pension liability has been funded through June 30, 2020, the date of the most recent pension actuarial report provided by CalPERS. This compares to a 72.2% funding level in the prior year.

Of the total NPL, $17 million was allocated to the Water fund; $7 million to the North Bay Regional Water Treatment Plan (NBR) Fund; and $2 million to the Transit Fund based upon FullTime Equivalent Employees (FTEs) allocated to these funds. The remaining NPL relates to the General Fund and other governmental funds ($171 million) and is accounted for in the GovernmentWide Statement of Net Position.

Audit Findings: For the ACFR, the auditor had no findings or recommendations in the current year.

For the Federal Awards Report, the auditor had two findings: one related to the CDBG program and timely filing of reports; and the Transit program and the documentation required when charging personnel costs to the federal grant. The City has responded with a required corrective action plan (which is included in the attached Federal Awards Report) that addresses these findings, and includes strengthened procedures, training, and review.

FINANCIAL IMPACT
The cost of the audit of the City’s annual ACFR is included as part of the General Fund budget (Fund 011, Division and Responsibility Code 24001). There is no financial impact resulting from the acceptance of the report.

PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
On April 7, 2022 the City Council’s Audit Committee met with the independent auditors, and reviewed and received the attachments to this report.

ALTERNATIVE ACTION
Do not approve the acceptance of the City’s Annual Comprehensive Financial Report for the Fiscal Year ended June 30, 2021. However, it should be noted that any changes to the report at this point would result in additional costs incurred by the City.

STAFF CONTACT
Juan Gomez, Interim Director of Finance
(707) 4287495
[email protected]
COORDINATED WITH
Mike Less, Accounting Manager
ATTACHMENTS:

Description
Attachment 1: Proposed Resolution
Attachment 2: Auditor's Report
Attachment 3: Federal Awards Report (Single Audit)
Attachment 4: Letter from Auditors to City Council (Annual Report) Attachment 5: Letter From Auditors to City Council (Single Audit) Packet Page 107 of 338

Agenda Item No: 16.AGENDA REPORTDATE:May 3, 2022 TO:Mayor and City CouncilFROM:David Gassaway, Interim City ManagerSUBJECT:Continued Resolution 202287 of the City Council of the City of Fairfield Approving theCity's Fiscal Year 202021 Annual Comprehensive Financial Report and the FederalAwards Report (Single Audit)RECOMMENDED ACTIONAdopt resolution.STATEMENT OF ISSUEThis item was pulled from the April 19, 2022 to be continued. The City Council is being asked toapprove the Annual Comprehensive Financial Report (ACFR) for Fiscal Year 202021, as well as theFederal Awards Report (Single Audit). The FY 202021 ACFR indicates the City’s financial conditionas of June 30, 2021, and has been audited by Eide Bailly LLP, an independent firm of Certified PublicAccountants. The FY 202021 Federal Awards Report indicates compliance applicable to major federalprograms.DISCUSSIONEach year an audit of the City’s financial statements (ACFR) and the City’s Federal Grants (SingleAudit) is performed by a firm of Independent Certified Public Accountants in conformity with GenerallyAccepted Audit Standards (GAAS). The ACFR covers all funds of the City and is prepared in accordance with Generally AcceptedAccounting Principles (GAAP). It is considered a generalpurpose report, as its contents are intendedto meet the needs of a broad range of user groups. For the ACFR, the auditors have issued an unmodified opinion and the City received positive feedbackfrom the auditors for the work performance and reports prepared by the Accounting Division.Such an opinion reflects the auditors’ belief that the basic financial statements contained in thesereports present fairly the financial position of the City of Fairfield (Attachment 2, Auditors’ Report,). TheFederal Awards audit report was prepared and audited by the auditors. The City was found to be incompliance with the requirements of the Federal Office of Management and Budget (OMB) compliancesupplement. The auditor did identify two instances of noncompliance, to which the City has respondedwith a corrective action plan to address these findings (Attachment 3, Federal Awards Report).A good summary of the financial condition of the City is contained in the transmittal letter and theManagement’s Discussion and Analysis (MD&A) of the ACFR, as well as in the City’s Popular AnnualFinancial Report (PAFR) for FY 202021, the latter being a summary of the ACFR and included as anattachment to this report. Additional supporting information related to the financial statements can befound in the notes to the financial statements of the ACFR. The following represents key financialpositions and highlights of the City’s major funds:General Fund: The fund balance increased from the prior year to the current year by $3.2 million to abalance of $52.3 million. This increase was mainly due to continued strength in, and higher thanbudgeted, sales, Measure P, and property taxes (revenues exceeded the budget by $9.5 million). Expenditure savings related to staffing vacancies also contributed to an increase in fund balance. Ofthe $52.3 million fund balance, $10.4 million of this fund balance represents funding from the CityCouncil approved Pension Stabilization Fund, which is a subfund of the General Fund ($6.7 million isrestricted funding related to a Pension Trust Fund and $3.7 million is committed in the PensionStabilization Fund for future payment of pension obligations). Internal Service Fund Liabilities: As shown in the transmittal letter, the table below shows some ofthe key liabilities of the internal service funds and their associated levels of funding:Workers'Compensation GeneralLiability Other PostEmploymentBenefits(OPEB)CompensatedAbsencesCash Reserve $15,934,496 $3,748,385 $1,553,615 $5,570,126Actuarial Liability $11,398,421 $3,597,828 $457,067 $18,815,275% of Liability Funded 140%104%340%30%Intragovernmental Loan Fund: The current assets of the Intragovernmental Loan Fund decreasedby $1.5 million from $16.8 million to $15.3 million, primarily a result of the continued spending on theHeart of Fairfield Project. The balance mainly consists of $12 million in Loans receivable from theSuccessor Agency. Water Funds: The net position of the Water Fund increased by $7.7 million during FY 202021 from$62.8 million to $70.5 million, mainly due to increased water sales and a recent water rate increase. Asdiscussed below, this fund has recognized its share of the City’s Net Pension Liability of $17.3 million(as required by Governmental Accounting Standards Board (GASB) 68).Golf Funds: The Golf Fund shows an accumulated net position of $14 million, mainly consisting of thenet capital assets of the golf courses themselves of $13 million. Remaining bond liabilities total $1.4million; these bonds continue to be paid down per the debt service schedule and will be paid off in2023. Transit:The net position of the Transit Fund decreased by $1.4 million during FY 202021, mainly dueto the pandemic and reduced ridership and revenue during the year. As discussed below, as requiredby GASB 68, this fund has recognized its share of the City’s Net Pension Liability of $2.4 million(including deferred inflows and outflows) which resulted in the fund ending with a negative unrestrictednet position of $2.4 million.CalPERS and Net Pension Liability: As of June 30, 2021, the City’s combined total Net PensionLiability (NPL) is approximately $197 million, an increase of $13 million (7%) over the prior fiscal year.The NPL is a result of comparing total pension plan assets of $499 million to the total pension liability of$696 million, which reflects that approximately 71.7% of the pension liability has been funded throughJune 30, 2020, the date of the most recent pension actuarial report provided by CalPERS. Thiscompares to a 72.2% funding level in the prior year.Of the total NPL, $17 million was allocated to the Water fund; $7 million to the North Bay Regional WaterTreatment Plan (NBR) Fund; and $2 million to the Transit Fund based upon FullTime EquivalentEmployees (FTEs) allocated to these funds. The remaining NPL relates to the General Fund and othergovernmental funds ($171 million) and is accounted for in the GovernmentWide Statement of NetPosition.Audit Findings: For the ACFR, the auditor had no findings or recommendations in the current year.For the Federal Awards Report, the auditor had two findings: one related to the CDBG program andtimely filing of reports; and the Transit program and the documentation required when chargingpersonnel costs to the federal grant. The City has responded with a required corrective action plan(which is included in the attached Federal Awards Report) that addresses these findings, and includesstrengthened procedures, training, and review.FINANCIAL IMPACTThe cost of the audit of the City’s annual ACFR is included as part of the General Fund budget (Fund011, Division and Responsibility Code 24001). There is no financial impact resulting from theacceptance of the report.PUBLIC CONTACT/ADVISORY BODY RECOMMENDATIONOn April 7, 2022 the City Council’s Audit Committee met with the independent auditors, and reviewedand received the attachments to this report.ALTERNATIVE ACTIONDo not approve the acceptance of the City’s Annual Comprehensive Financial Report for the FiscalYear ended June 30, 2021. However, it should be noted that any changes to the report at this pointwould result in additional costs incurred by the City.STAFF CONTACTJuan Gomez, Interim Director of Finance(707) 428[email protected] WITHMike Less, Accounting ManagerATTACHMENTS:DescriptionAttachment 1: Proposed ResolutionAttachment 2: Auditor's ReportAttachment 3: Federal Awards Report (Single Audit) Attachment 4: Letter from Auditors to City Council (Annual Report) Attachment 5: Letter From Auditors to City Council (Single Audit) Attachment 6: Popular Annual Financial Report Fiscal Year 202021 REVIEWERS:

Reviewer Action Date
Alexander, Amber Approved 4/20/2022 8:05 AM
Packet Page 108 of 338

CITY OF FAIRFIELD

RESOLUTION NO. 2022-87

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FAIRFIELD APPROVING THE CITY’S FISCAL YEAR 2020-21 ANNUAL COMPREHENSIVE FINANCIAL REPORT AND THE FEDERAL AWARDS

REPORT (SINGLE AUDIT)

NOW, THEREFORE, THE COUNCIL OF THE CITY OF FAIRFIELD HEREBY RESOLVES:

Section 1. Pursuant to Section 37208 (c) of the Government Code, the Fiscal Year 2020- 2021 Comprehensive Annual Financial Report and Federal Awards Report (Single Audit) is hereby approved and ratified.

Section 2. The city manager and director of finance are hereby authorized to take all actions necessary to implement this resolution.

PASSED AND ADOPTED this 3rd day of May, 2022, by the following vote:

AYES: COUNCILMEMBERS: PRICE / BERTANI / MOY / PANDURO / TIMM / TONNESEN / VACCARO_

NOES: COUNCILMEMBERS: ________________________________________________

ABSENT: COUNCILMEMBERS: ________________________________________________

ABSTAIN: COUNCILMEMBERS: ________________________________________________

________________________________________________
MAYOR

ATTEST:

____________________________

CITY CLERK

Packet Page 109 of 338Attachment 1 Page 1 of 1

What inspires you, inspires us. | eidebailly.com
2151 River Plaza Dr., Ste. 308 | Sacramento, CA 95833-4133 | T 916.570.1880 | F 916.570.1875 | EOE 1 Independent Auditor’s Report
To the Honorable Mayor and Members of the City Council
of the City of Fairfield
City of Fairfield, California
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business‐ type activities, each major fund, and the aggregate remaining fund information of the City of Fairfield, California (City), as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the City’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Packet Page 110 of 338Attachment 2 Page 1 of 3

2 Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business‐type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2021, and the respective changes in financial position and, where applicable, cash flows thereof and the respective budgetary comparison statements for the general fund and the major special revenue funds for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Emphasis of Matter

As discussed in Note 1 and Note 20 to the financial statements, the City has adopted provisions of Governmental Accounting Standards Board (GASB) Statement No. 84, Fiduciary Activities, which has resulted in a restatement of the net position and fund balance as of July 1, 2020. Our opinions are not modified with respect to this matter.

Other Matters

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, schedules of changes in net pension liability and related ratios, schedule of changes in the net OPEB liability and related ratios, and schedule of contributions for the pension and OPEB liabilities, as listed in the table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s financial statements. The introductory section, combining and individual nonmajor fund financial statements, and statistical section are presented for purposes of additional analysis and are not a required part of the financial statements.

The combining and individual nonmajor fund financial statements are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements are Packet Page 111 of 338Attachment 2 Page 2 of 3

3 fairly stated, in all material respects, in relation to the basic financial statements as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 2, 2021 on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City’s internal control over financial reporting and compliance.

Sacramento, California
December 2, 2021
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eidebailly.com
Federal Awards Reports in Accordance
with the Uniform Guidance
June 30, 2021
City of Fairfield, California
Packet Page 113 of 338Attachment 3 Page 1 of 16

City of Fairfield, California
Table of Contents
June 30, 2021
Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards .......................................................................................................................... 1 Independent Auditor’s Report on Compliance for the Major Federal Program; Report on Internal Control Over Compliance; and Report on the Schedule of Expenditures of Federal Awards Required by the Uniform Guidance ............................................................................................................................................... 3 Schedule of Expenditures of Federal Awards ....................................................................................................... 6 Notes to Schedule of Expenditures of Federal Awards ......................................................................................... 7 Schedule of Findings and Questioned Costs
I – Summary of Auditor's Results ..................................................................................................................... 8 II – Financial Statement Findings ...................................................................................................................... 9 III – Federal Award Findings and Questioned Costs .........................................................................................10 Summary Schedule of Prior Audit Findings..........................................................................................................14 Packet Page 114 of 338Attachment 3 Page 2 of 16

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1 Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards

To the Honorable Mayor and Members of the City Council
City of Fairfield, California

We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Fairfield, California (City), as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements and have issued our report thereon dated December 2, 2021. Our report included an emphasis of matter paragraph regarding the City's adoption of Governmental Accounting Standards Board Statement No. 84, Fiduciary Activities, effective July 1, 2020.

Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control.

Accordingly, we do not express an opinion on the effectiveness of the City's internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

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2 Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Sacramento, California
December 2, 2021

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3 Independent Auditor’s Report on Compliance for the Major Federal Program; Report on Internal Control Over Compliance; and Report on the Schedule of Expenditures of Federal Awards Required by the Uniform Guidance

To the Honorable Mayor and Members of the City Council
City of Fairfield, California

Report on Compliance for Each Major Federal Program
We have audited the City of Fairfield, California’s (City) compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on the City’s major federal programs for the year ended June 30, 2021. The City’s major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs.

Management’s Responsibility
Management is responsible for compliance with federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal programs.

Auditor’s Responsibility
Our responsibility is to express an opinion on the compliance for each of the City’s major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the City’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances.

We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of the City’s compliance.

Opinion on Each Major Federal Program
In our opinion, the City complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2021.

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4 Other Matters
The results of our auditing procedures disclosed instances of noncompliance, which are required to be reported in accordance with the Uniform Guidance and which are described in the accompanying schedule of findings and questioned costs as items 2021-001 and 2021-002. Our opinion on each major federal program is not modified with respect to these matters.

The City’s response to the noncompliance findings identified in our audit is described in the accompanying schedule of findings and questioned costs and corrective action plan. The City’s response was not subjected to the auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response.

Report on Internal Control over Compliance
Management of the City is responsible for establishing and maintaining effective internal control over compliance with the compliance requirements referred to above. In planning and performing our audit of compliance, we considered the City’s internal control over compliance with the types of requirements that could have a direct and material effect on the major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control over compliance.

Our consideration of internal control over compliance was for the limited purpose described in the preceding paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that have not been identified. However, as discussed below, we did identify certain deficiencies in internal control over compliance that we consider to be material weaknesses and significant deficiencies.

A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a compliance requirement will not be prevented, or detected and corrected, on a timely basis. We consider the deficiencies in internal control over compliance described in the accompanying schedule of findings and questioned costs as item 2021-002 to be a material weakness.

A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. We consider the deficiencies in internal control over compliance described in the accompanying schedule of findings and questioned costs as item 2021-001 to be a significant deficiency.

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5 The City’s response to the internal control over compliance findings identified in our audit are described in the accompanying schedule of findings and questioned costs and corrective action plan. The City ’s response was not subjected to the auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response.

The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.

Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance We have audited the financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements. We issued our report thereon dated December 2, 2021, which contained unmodified opinions on those financial statements. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by the Uniform Guidance and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedule of expenditures of federal awards is fairly stated in all material respects in relation to the basic financial statements as a whole.

Sacramento, California
March 21, 2022

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See Notes to Schedule of Expenditures of Federal Awards 6 City of Fairfield, California
Schedule of Expenditures of Federal Awards
Year Ended June 30, 2021

Program/Project
Federal Financial or Pass-through Amounts
Assistance Indentification Total provided to
Listing Number Expenditures Subrecipients
U.S. Department of Housing and Urban Development
Direct Programs:

CDBG-Entitlement Grants Cluster:

Community Development Block Grant/Entitlement Grants 14.218 B-18-MC-06-0027 19,961$ -$ Community Development Block Grant/Entitlement Grants 14.218 B-19-MC-06-0027 178,056 60,650 Community Development Block Grant/Entitlement Grants 14.218 B-20-MC-06-0027 699,319 515,166 Community Development Block Grant/Entitlement Grants 14.218 Program Income 96,672 - Covid 19 - Community Development Block Grant/Entitlement Grants 14.218 B-20-MW-06-0027 525,000 525,000 Subtotal CDBG-Entitlement Grants Cluster 1,519,008 1,100,816 Housing Voucher Cluster:

Section 8 Housing Choice Vouchers 14.871 N/A 11,131,701 - Covid -19 Section 8 Housing Choice Vouchers 14.871 N/A 206,188 - Subtotal Housing Voucher Cluster 11,337,889 -
Passed through the California Department of Housing and Community Development:

Home Investment Partnerships Program 14.239 Program Income 595,088 - Total U.S. Department of Housing and Urban Development 13,451,985 1,100,816 U.S. Department of Transportation
Direct Programs:

Federal Transit Cluster:

Federal Transit Formula Grant 20.507 CA-2019-004-01 705,444 - Covid-19 Federal Transit Formula Grant 20.507 CA-2021-127-00 1,049,102 - Covid-19 Federal Transit Formula Grant 20.507 CA-2020-085-01 1,819,856 - Subtotal Federal Transit Cluster 3,574,402 -
Direct Programs:

Highway Planning and Construction Cluster:

Highway Planning and Construction 20.205 CA-15-X004 202,348 - Passed through the California Department of Transportation:

Highway Planning and Construction 20.205 STPL-5132 (045) 406,883 - Highway Planning and Construction 20.205 ATPL-5132 (047) 12,091 - Subtotal Highway Planning and Construction Cluster 621,322 - Passed through the California Office of Traffic Safety:

Highway Safety Cluster:

State and Community Highway Safety 20.600 PT21154 117,607 - National Priority Safety Program 20.616 TR2065 24,800 - Subtotal Highway Safety Cluster 142,407 -
Total U.S. Department of Transportation 4,338,131 - U.S. Department of Homeland Security
Direct Programs:

COVID-19 Assistance to Firefighters Grant 97.044 EMW-2020-FG-03100 12,295 - Total U.S. Department of Homeland Security 12,295 - U.S. Department of Treasury
Passed through the California Department of the Treasury:

Coronavirus Relief Fund 21.019 N/A 1,444,380 - Total U.S. Department of Treasury 1,444,380 -
Total Federal Expenditures 19,246,791$ 1,100,816$
Federal Grantor/Pass-Through
Grantor/Program or Cluster Title

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7 City of Fairfield, California
Notes to Schedule of Expenditures of Federal Awards
Year Ended June 30, 2021

Note 1 - Reporting Entity

The financial reporting entity consists of (a) the primary government, City of Fairfield, California (the “City”), (b) organizations for which the primary government is financially accountable, which include the Fairfield Public Financing Authority, Fairfield Municipal Park Improvement District No. 1, Fairfield Storm Drain Facilities Improvement District No. 1, Fairfield Water Facilities Improvement District No. 1, Fairfield Community Facilities Districts and the Housing Authority of the City of Fairfield, and (c) other organizations for which the primary government is not accountable, but for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity’s financial statements to be misleading or incomplete.

Note 2 - Basis of Presentation

The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of the City under programs of the federal government for the year ended June 30, 2021. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the City, it is not intended to and does not present the financial position, changes in net position, or cash flows of the City.

Note 3 - Summary of Significant Accounting Policies

Expenditures reported on the Schedule are reported on the modified accrual basis of accounting for governmental funds and the accrual basis of accounting for proprietary funds, except for subrecipient expenditures, which are reported on the cash basis. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts, if any, shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.

Note 4 - Indirect Cost Rate

For the year ended June 30, 2021, the City did not have any federal award activity that included an indirect cost rate, therefore, the City did not elect to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.

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8 City of Fairfield, California
Schedule of Findings and Questioned Costs
Year Ended June 30, 2021

Section I – Summary of Auditor’s Results

FINANCIAL STATEMENTS
Type of auditor's report issued Unmodified
Internal control over financial reporting:

Material weaknesses identified No
Significant deficiencies identified not considered
to be material weaknesses None reported
Noncompliance material to financial statements noted?No

FEDERAL AWARDS
Internal control over major program:

Material weaknesses identified Yes
Significant deficiencies identified not considered
to be material weaknesses Yes
Type of auditor's report issued on compliance
for major programs:Unmodified
Any audit findings disclosed that are required to be reported in accordance with Uniform Guidance 2 CFR 200.516(a)?Yes
Identification of major programs:

Federal Financial Assistance Listing
CDBG-Entitlement Grants Cluster 14.218
Federal Transit Cluster 20.507
Coronavirus Relief Fund 21.019
Dollar threshold used to distinguish between type A
and type B programs:$750,000
Auditee qualified as low-risk auditee?Yes
Name of Major Federal Program or Cluster

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9 City of Fairfield, California
Schedule of Findings and Questioned Costs
Year Ended June 30, 2021

Section II – Financial Statement Findings

None reported
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10 City of Fairfield, California
Schedule of Findings and Questioned Costs
Year Ended June 30, 2021

Section III – Federal Award Findings and Questioned Costs

Finding 2021-001

Program/Cluster: CDBG-Entitlement Grants Cluster
CFDA Number: 14.218
Federal Agency: U.S. Department of Housing and Urban Development Pass-through: N/A
Award No. and Year: B-20-MC-06-0027 (2020) and B-20-MW-060027 (2020) Compliance Requirement: Reporting
Type of Finding: Significant Deficiency, Instance of Non-Compliance

Criteria:
2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. 2 CFR Part 170 establishes requirements for recipients’ reporting of information on subawards as required by the Federal Funding Accountability and Transparency Act of 2006 (FFATA).

Condition:

We identified the following:

1. No documentation to support a formal review of the FFATA reporting information prior to submission in the FFATA Subaward Reporting System (FSRS).

2. The FFATA reporting was not completely timely as required by 2 CFR Part 170 for the following instances:

Transactions
Tested
Subaward Not
Report Report Not Timely Subaward Amount
Incorrect
Subaward Missing
Key Elements
3 - 3 - -

Dollar Amount of
Tested
Transactions
Subaward Not
Report Report Not Timely Subaward Amount
Incorrect
Subaward Missing
Key Elements
$368,549 - $368,549 - -

Cause:

Management asserted that one (1) instance was the result of staffing issues and two (2) instances were the result of the FSRS not retaining history of the original FFATA submission which was overwritten with subsequent submissions as the result of the modification to their grant award from HUD.

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City of Fairfield, California
Schedule of Findings and Questioned Costs
Year Ended June 30, 2021

11 Effect:

Ineffective controls over this area of compliance could result in reports that are inaccurate or incomplete being submitted to the federal agency.

Questioned Costs:

No questioned costs were identified as a result of our procedures.

Context/Sampling:

A nonstatistical sample of 3 subaward transactions out of 13 active subawards were selected for testing.

Repeat Finding from Prior Year(s):

No.

Recommendation:

We recommend that management strengthen their processes and procedures related to the submission of the required FFATA reports to ensure compliance with the program requirements. We also recommend that management establish documented review of the required FFATA reports by an individual other than the preparer prior to submission and retain record of the review and submission.

Views of Responsible Officials:

Management’s Response:

We concur.

There were staffing changes during the pandemic that caused delays in timely reporting. Going forward, the FFATA reports will be completed on a timely basis, and before filing the report, a copy will be printed out, reviewed, and signed by the manager--indicating approval. The FSRS website does not save multiple versions of the report. Therefore, once filed, the City will printout and save a copy of each version of the reports to substantiate and document each response. Staff will be trained on the federal grant reporting requirements during staffing changes; and staff will also participate in any and all trainings offered to support proper Federal grant reporting.

See separate corrective action plan.

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City of Fairfield, California
Schedule of Findings and Questioned Costs
Year Ended June 30, 2021

12 Finding 2021-002

Program/Cluster: Federal Transit Cluster
CFDA Number: 20.507
Federal Agency: U.S. Department of Transportation
Pass-through: N/A
Award No. and Year: CA-2020-085-01 (2020) and CA-2021-127-00 (2021) Compliance Requirement: Allowable Costs
Type of Finding: Material Weakness, Instance of Non-Compliance

2 CFR 200.430(i) establishes the standards for documentation of personnel expenses, including the requirement that when budget estimates are used to allocate personnel expenses. The auditee must have a system of controls in place to review after-the-fact interim charges made to the program based on budget estimates and all necessary adjustments must be made such that the final amount charged to the federal award is accurate, allowable, and properly allocated.

Condition:

We identified that the City charged personnel expenses based on budget, and an after-the-fact review was not performed prior to the program audit. Personnel expenses allocated to the program were $402,329. The City subsequently performed an after-the-fact review of the budget estimates to actual expenses based on time records.

Cause:

Management’s policies and procedures did not include performing an after-the-fact review of personnel expenses charged to the program based on budget.

Effect:

By not performing timely after-the-fact reviews of personnel expenses charged to the program based on budget, this could result in inaccurate or ineligible expenses charged to the program.

Questioned Costs:

No questioned costs were identified as a result of our procedures.

Context/Sampling:

A nonstatistical sample of 40 employee charges out of 784 were selected for testing.

Repeat Finding from Prior Year(s):

No.

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City of Fairfield, California
Schedule of Findings and Questioned Costs
Year Ended June 30, 2021

13 Recommendation:

We recommend that the City strengthen its policies and procedures to ensure that an after-the-fact review of personnel expenses be performed on a timely basis when allocated based on budget estimates.

Views of Responsible Officials:

Management’s Response:

We concur.

The City doesn’t typically charge personnel costs to an FTA Transit grant, but because of the unique circumstances with the pandemic, the recovery of some of these costs was available. The City does not anticipate charging personnel costs to future federal transit grants, but if the situation comes about in the future, staff is aware that when charging personnel costs, a substantiating analysis must be performed. Going forward, staff will continue to train on the requirements of federal grants to stay abreast of any changes and comply with all requirements. In addition, if a decision is made to use federal funding to offset personnel costs, Transit staff will confer closely with Finance staff to ensure all federal reporting requirements are met.

See separate corrective action plan.

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14 City of Fairfield, California
Summary Schedule of Prior Audit Findings
Year Ended June 30, 2021

Finding
No.

Program/Cluster Federal Assistance
Listing No.

Compliance
Requirement
Status
2020-001 Housing Voucher Cluster 14.871 Special Tests and Provisions – Selection
from the Waiting List
Implemented
2020-002 Housing Voucher Cluster 14.871 Special Tests and Provisions –
Reasonable Rent
Implemented

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2151 River Plaza Dr., Ste. 308 | Sacramento, CA 95833-4133 | T 916.570.1880 | F 916.570.1875 | EOE 1 December 2, 2021
To the Honorable Mayor and Members of the City Council
of the City of Fairfield
City of Fairfield, California
We have audited the financial statements of the governmental activities, business‐type activities, each major fund, and the aggregate remaining fund information of the City of Fairfield, California (City) as of and for the year ended June 30, 2021 and have issued our report thereon dated December 2, 2021. Professional standards require that we advise you of the following matters relating to our audit.

Our Responsibility in Relation to the Financial Statement Audit under Generally Accepted Auditing Standards and Government Auditing Standards
As communicated in our letter dated April 19, 2021, our responsibility, as described by professional standards, is to form and express an opinion about whether the financial statements that have been prepared by management with your oversight are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America. Our audit of the financial statements and major program compliance does not relieve you or management of its respective responsibilities.

Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reasonable, rather than absolute, assurance about whether the financial statements are free of material misstatement. An audit of financial statements includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control over financial reporting.

Accordingly, as part of our audit, we considered the internal control of the City solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control.

However, we are not required to design procedures for the purpose of identifying other matters to communicate to you.

We have provided our comments regarding internal controls during our audit in our Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards dated December 2, 2021.

Planned Scope and Timing of the Audit
We conducted our audit consistent with the planned scope and timing we previously communicated to you.

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2 Compliance with All Ethics Requirements Regarding Independence

The engagement team, others in our firm, as appropriate, our firm, and other firms utilized in the engagement, if applicable, have complied with all relevant ethical requirements regarding independence.

Qualitative Aspects of the City’s Significant Accounting Practices

Significant Accounting Policies

Management has the responsibility to select and use appropriate accounting policies. A summary of the significant accounting policies adopted by the City is included in Note 1 to the financial statements. As described in Note 1 to the financial statements, management adopted Governmental Accounting Standards Board (GASB) Statement No. 84, Fiduciary Activities, effective July 1, 2020. Accordingly, the cumulative effect of the accounting change as of the beginning of the year is reported in Note 20 of the financial statements.

No matters have come to our attention that would require us, under professional standards, to inform you about (1) the methods used to account for significant unusual transactions and (2) the effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus.

Significant Accounting Estimates

Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s current judgments. Those judgments are normally based on knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ markedly from management’s current judgments.

The most sensitive accounting estimates affecting the financial statements were:

Management’s estimates were used in establishing allowances for accounts receivables, establishing self‐insurance reserves, the net pension liability and related deferred inflows/outflows of resources related to pension. We evaluated key factors and assumptions used to develop the estimates in determining that it is reasonable in relation to the financial statements taken as a whole.

Financial Statement Disclosures

Certain financial statement disclosures involve significant judgment and are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the City’s financial statements relate to:

The City’s disclosure of the defined benefit pension plans, net pension liability and related deferred inflows of resources and deferred outflows of resources in Note 12 to the financial statements. The valuation of the net pension liability and related deferred outflows/inflows of resources are sensitive to the underlying actuarial assumptions uses including, but not limited to, the investment rate of return and discount rate. As disclosed in Note 12, a 1% increase or decrease in the discount rate has a material effect on the City’s net pension liability.

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3 Significant Difficulties Encountered during the Audit

We encountered no significant difficulties in dealing with management relating to the performance of the audit.

Uncorrected and Corrected Misstatements

For purposes of this communication, professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that we believe are trivial, and communicate them to the appropriate level of management. Further, professional standards require us to also communicate the effect of uncorrected misstatements related to prior periods on the relevant classes of transactions, account balances or disclosures, and the financial statements as a whole. There were no uncorrected or material corrected missstatements identified as a result of our audit procedures.

Disagreements with Management

For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter, which could be significant to the financial statements or the auditor’s report. No such disagreements arose during the course of the audit.

Representations Requested from Management

We have requested certain written representations from management which are included in the management representation letter dated December 2, 2021.

Management’s Consultations with Other Accountants

In some cases, management may decide to consult with other accountants about auditing and accounting matters. Management informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing and accounting matters.

Other Significant Matters, Findings, or Issues

In the normal course of our professional association with the City, we generally discuss a variety of matters, including the application of accounting principles and auditing standards, operating conditions affecting the City, and operating plans and strategies that may affect the risks of material misstatement. None of the matters discussed resulted in a condition to our retention as the City’s auditors.

This report is intended solely for the information and use of the Mayor, Members of the City Council, and management of the City and is not intended to be, and should not be, used by anyone other than these specified parties.

Sacramento, California
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What inspires you, inspires us. | eidebailly.com
2151 River Plaza Dr., Ste. 308 | Sacramento, CA 95833-4133 | T 916.570.1880 | F 916.570.1875 | EOE 1 March 21, 2022
To the Honorable Mayor and Members of the City Council
of the City of Fairfield
City of Fairfield, California
We have audited the financial statements of the City of Fairfield, California (City) as of and for the year ended June 30, 2021 and have issued our report thereon dated December 2, 2021. We have also provided our communication in accordance with professional standards on the audit of the financial statements in our letter dated December 2, 2021. Professional standards require that we advise you of the following matters relating to our audit of compliance under the Uniform Guidance.

Our Responsibility in Relation to the Financial Statement Audit under Generally Accepted Auditing Standards and Government Auditing Standards, and our Compliance Audit under the Uniform Guidance As communicated in our letter dated April 19, 2021, our responsibility, as described by professional standards, is to form and express an opinion about whether the financial statements that have been prepared by management with your oversight are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America and to express an opinion on whether the City complied with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of the City’s major federal programs. Our audit of the financial statements and major program compliance does not relieve you or management of your respective responsibilities.

Our responsibility, as prescribed by professional standards as it relates to the audit of the City’s major federal program compliance, is to express an opinion on the compliance for each of the City’s major federal programs based on our audit of the types of compliance requirements referred to above. An audit of major program compliance includes consideration of internal control over compliance with the types of compliance requirements referred to above as a basis for designing audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, as a part of our major program compliance audit, we consider internal control over compliance for these purposes and not to provide any assurance on the effectiveness of the City’s internal control over compliance.

We are also responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process. However, we are not required to design procedures for the purpose of identifying other matters to communicate to you.

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2 We have provided our comments regarding internal controls during our audit in our Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards dated December 2, 2021.

We have also provided our comments regarding compliance with the types of compliance requirements referred to above and internal controls over compliance during our audit in our Independent Auditor’s Report on Compliance with Each Major Federal Program and Report on Internal Control Over Compliance Required by the Uniform Guidance dated March 21, 2022.

Planned Scope and Timing of the Audit
The timing of the compliance audit under the Uniform Guidance was modified for the timing of the release of the OMB Compliance Supplement, Compliance Supplement Addendum and related guidance.

Compliance with All Ethics Requirements Regarding Independence The engagement team, others in our firm, as appropriate, our firm, and other firms utilized in the engagement, if applicable, have complied with all relevant ethical requirements regarding independence.

Significant Difficulties Encountered during the Audit
We encountered no significant difficulties in dealing with management relating to the performance of the audit.

Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter, which could be significant to City’s financial statements or the auditor’s report. No such disagreements arose during the course of the audit.

Representations Requested from Management
We have requested certain written representations from management on the audit of compliance under the Uniform Guidance which are included in the management representation letter dated March 21, 2022.

Management’s Consultations with Other Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting matters. Management informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing and accounting matters.

Other Significant Matters, Findings, or Issues
In the normal course of our professional association with the City, we generally discuss a variety of matters, including the application of accounting principles and auditing standards, operating and regulatory conditions affecting the entity, and operational plans and strategies that may affect the risks of material misstatement.

None of the matters discussed resulted in a condition to our retention as the City’s auditors.

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3 Other Information in Documents Containing Audited Financial Statements Pursuant to professional standards, our responsibility as auditors for other information in documents containing the City’s audited financial statements does not extend beyond the financial information identified in the audit report, and we are not required to perform any procedures to corroborate such other information. However, in accordance with such standards, we will review the information inputted into the data collection form and will consider whether such information, or the manner of its presentation, is materially consistent with the financial statements.

Sacramento, California
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City of Fairﬁeld, California
Popular Annual Financial Report
Fiscal Year Ended June 30, 2021
Prepared by: Finance Department –AccounƟng Division
The Centennial Windmill — City Hall
Packet Page 135 of 338Attachment 6 Page 1 of 19

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Popular Annual Financial Report for FY 2020-21
City Council and Elected Officials

A Message to Our Readers Table of Contents

→ 2 - City Council and Elected Officials
→ 2 - Management Leadership Team
→ 3 - City and Government Profile
→ 4 - City and Demographic Information
→ 4 - Major Employers and Trend Information
→ 5 - Economic Summary
→ 6 - Summary Entity Financial Statements
→ 9 - Financial Overview and Long Term
Outlook for the City’s General Fund
→11 - Major Revenue Sources
→12 - Financial Long Term Outlook for the
City’s Other Funds
→14 - Cash and Investments
→15 - Long-Term Obligations
→16 - Capital Assets
→17 - Capital Improvement Plan

For additional details regarding information contained
in this PAFR, you can review the City’s most current
ACFR at
https://www.fairfield.ca.gov/home/showpublisheddocumen
t/6232/637756037543970000
and the operating budget and Capital Improvement
Plan at https://www.fairfield.ca.gov/government/city-
departments/finance/financial-reports.

The City is pleased to present its Popular Annual
Financial Report (PAFR) for the fiscal year ended
June 30, 2021. The purpose of the PAFR is to inform
the community of the City’s fiscal condition in an
easy to read format.

The City of Fairfield’s Annual Comprehensive
Financial Report for the year ended 2019-2020,
from which the information has been drawn, was
awarded the Certificate of Achievement for
Excellence in Financial Reporting by Government
Finance Officers Association of the United States
and Canada (GFOA). The Certificate of Achievement
is the highest form of recognition for excellence in
state and local government financial reporting.

In order to be awarded a Certificate of
Achievement, a government unit must publish an
easily readable and efficiently organized Annual
Comprehensive Financial Report (ACFR), whose
contents conform to program standards. Such an
ACFR must satisfy both generally accepted
accounting principles and applicable legal
requirements.

A Certificate of Achievement is valid for a period of
one year only. We believe that our current ACFR
continues to conform to the Certificate of
Achievement Program’s requirements, and we are
submitting it to GFOA to determine its eligibility for
another Certificate. The City also received the
Award for Outstanding Achievement in Popular
Annual Financial Reporting for its PAFR for the prior
fiscal year.

Except for the General Fund information included in
this report, the financial numbers are presented
using the accrual method of accounting similar to
the private sector, where revenues are recognized
in the period in which they are earned and expenses
are recognized in the period in which the liability is
incurred. In addition, information is presented in a
summarized format and certain information and
disclosures required by GAAP are omitted.

1 Packet Page 137 of 338Attachment 6 Page 3 of 19

Popular Annual Financial Report for FY 2020-21
City Council and Elected Officials

Harry T. Price Rick Vaccaro
Mayor Vice-Mayor
District 4

Chuck Timm Scott Tonnesen Catherine Moy Doriss Panduro Pam Bertani Councilmember Councilmember Councilmember Councilmember Councilmember District 1 District 2 District 3 District 5 District 6

Karen L. Rees Arvinda Krishnan
City Clerk City Treasurer

Management Leadership Team

David Gassaway Anthony M. Velasquez Juan Gomez
Acting City Manager Fire Chief Interim Director of Finance

Greg W. Stepanicich Farbod Pirouzmand Paul Kaushal
City Attorney Director of Human Resources Director of Public Works

David Gassaway Deanna Cantrell LaTanna Jones
Assistant City Manager Police Chief Director of Housing Services

Kristina Chamberlin
Director of Parks and Recreation
2 Packet Page 138 of 338Attachment 6 Page 4 of 19

Popular Annual Financial Report for FY 2020-21
City Profile and Demographic Information
City Profile
Government Profile
The City is a general law city, and was incorporated in 1903. It has a Council-Manager form of government with a separately-elected Mayor and six Council members elected at large to staggered four-year terms. There are also two citizen commissions whose members are appointed by the Council to fixed terms: Planning and Youth. The City also has a five-member Fairfield Taxpayers Committee (the “Measure P Committee”) whose members are appointed by Council to a fixed term. The City Clerk and Treasurer are elected. The City Council appoints the City Manager and Attorney. Department heads are appointed by the City Manager.

The City is organized into eight departments: Public Works, Police, Fire, Finance, Community Development, Parks and Recreation, Human Resources and Housing Services. In addition, City Administration comprises the executive, information technology, legislative, and legal offices. The chart below shows the City’s full time staff levels during the past ten years. The City’s employees are 0.5% of the total population of the City.

The City provides a broad range of services including police and fire protection; construction and maintenance of streets, parks, storm drains and other infrastructure; recreational and cultural activities, including two 18-hole championship golf courses; and administrative support services. Some major public services delivered within the City’s boundaries, including library, wastewater, and education, are provided by other governmental agencies. The City is not financially accountable for the operations of these franchises or government agencies.

Fairfield sits at the northeastern portion of the
San Francisco Bay Area. The county seat of Solano
County since 1858, Fairfield has the vision of a
progressive city. Founded in 1856 by Captain
Robert Waterman, the City was named after
Fairfield, Connecticut. Community amenities
include an enclosed regional shopping mall with
over one million square feet and 150 stores, an
adult recreation center, the 650-acre Rockville
Hills Park, and a weekly farmer's market in
season. Situated between two of the fastest
growing areas in California, Fairfield bridges the
gap between the San Francisco Bay Area and the
Sacramento metropolitan region. The Napa and
Sonoma wineries lie an hour to the west, and Lake
Tahoe two hours to the east.
400
500
600
700
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
523 501 510 527 534 541 553 559 571 585
Total Authorized Full-Time Employees
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Popular Annual Financial Report for FY 2020-21
City Profile and Demographic Information
City and Demographic Information

Major Employers as of June 30, 2021
Trend Information / Comparison of Cities
Travis Air Force Base U.S. Military 12,864
County of Solano Government 3,133
NorthBay Healthcare Center Healthcare 2,824
Fairfield-Suisun Unified School District Education 2,235 City of Fairfield Government 602
Jelly Belly Candy Co.Manufacturing 426
Paradise Valley Estates Senior Housing 401
Fedex Ground Package System Inc #945 Transportation 396 Walmart Supercenter #2048 Retail 369
Partnership HealthPlan Insurance 350
See the City’s original budget for fiscal years 2020-21 and 2021-22 for more information regarding these trends among comparable cities:
The City’s population growth rate is average.
The City’s per capita revenues from tax revenues is below average. The City has had significant swings in its property and sales tax revenues, building and foreclosure activity, unemployment rates, transit ridership and golf rounds played.
The City’s pension obligation contribution rate has increased significantly over the past ten years. The City’s Other Post-Employment Benefits (OPEB) liability is below the average. The City has a low industrial vacancy rate, but a high office vacancy rate.

Fairfield is an ethnically diverse community (U.S. Census Bureau data from 2010 indicates that of the total population, 16% is black, 15% is Asian, 27% is Hispanic, 35% is white and 7% is other/mixed). Local educational institutions include Solano Community College, and campuses of St. Mary’s College, Golden Gate University, University of Phoenix, Chapman University, California Maritime Academy, and Touro University. The University of California Berkeley and Davis are within 40 minute drive. Size:37.4 square miles
Population:118,005
Population Ranking CA Cities:55
Median Age:35 years
Per Capita Personal Income:$53,505
Unemployment Rate (EDD 10/21):7.8%
% of Pop. High School / College Degree:87.5% / 28.3%
Part 1 Crime Rate (2020):33.3 per 1,000 persons
Elevation:15 to 400 ft. above sea level
Fire Protection:ISO Rating 3 fire class
Sales Tax Rate:8.375%
Median Price of Home Sales:$570,000
4 Packet Page 140 of 338Attachment 6 Page 6 of 19

Popular Annual Financial Report for FY 2020-21
Financial and Budgetary Information

Economic Summary for FY 2020-2021 (as of June 2021)
Below is a summary analysis of some key indicators of the region’s economic environment.

Stock and Financial Markets
The value of the stock markets increased for the fiscal year. Interest rates declined during the year. The U.S. Economy is recovering from the impact of the coronavirus pandemic, and industry analysts are forecasting a growth rate in GDP of

4.5% for 2022, an increase from an estimated increase of 3.8% for 2021.

Stock / Financial Markets Index / Rate Fiscal Year Change Dow Jones 34,503 8,690
S&P 500 4,298 1,198
2 Year Treasury 0.3%0.1%
30 Year Home Mortgage 3.2%0.3%
Employment
The U.S. and regional job market continues to recover from the impact of the coronavirus pandemic on employment, as evidenced by decreasing unemployment numbers in recent labor reports. Industry analysts expect the unemployment rate to continue to decline in FY 21-22.

Unemployment Rate Fiscal Year Change
United States 5.9%-5.2%
California 8.0%-6.9%
Solano County 7.7%-5.9%
Fairfield 7.5%-5.9%
Inflation
Inflation continues at an increasing rate when compared to past years due to the recovery of the coronavirus pandemic, representing some pressure from food prices and high energy prices. Oil prices have increased over the previous year, resulting in gasoline prices increasing 70% in FY 20-21.

Inflation Rates Rate Fiscal Year Change
Bay Area CPI 3.2%1.6%
Turner Building CPI 1.3%2.3%
Personal Savings Rate 9.4%-9.3%
Oil Prices (as of 6/30/21)$73 $34
Rental Vacancy Rates
Fairfield’s office vacancy rates increased during the fiscal year by 20.6%. Fairfield’s industrial vacancy rates decreased during the fiscal year and remained slightly above the County rate of 3.1%. Apartment vacancy rates and retail vacancy rates for the Fairfield/Vallejo region increased slightly for the period.

Vacancy Rates Rate Fiscal Year Change
Office - Fairfield 27.2%2.2%
Industrial - Fairfield 3.4%-3.2%
Apartment - Fairfield/Vallejo Region 3.2%0.5%
Retail - Fairfield/Vallejo Region 11.6%0.8%
5 Packet Page 141 of 338Attachment 6 Page 7 of 19

Popular Annual Financial Report for FY 2020-21
Financial and Budgetary Information

Government-Wide Financial Analysis
2021 2020 $%
Current and other assets 458$ 425$ 33$ 8%
Long-Term Assets 537 528 9 2%
Total assets 995 953 42 4%
Total deferred outflows of resources 42 40 2 5%
Long term liabilites outstanding 325 319 6 2%
Current and other liabilities 88 69 19 28%
Total liabilities 413 388 25 6%
Total deferred inflows of resources 1 5 (4) -80%
Net position:

Net investment in capital assets 469 455 14 3%
Restricted 196 184 12 7%
Unrestricted (42) (39) (3) -8%
Total net position 623$ 600$ 23$ 4% Change from 2020Totals - All Funds
Summary Statements of Net Position (in millions) - All Activities •Current Assets – This includes cash and investments, and items such as receivables, inventory and prepaid items expected to be converted into cash within one year. See the cash and investments section of this PAFR for additional information on these assets.
•Long-Term Assets – Includes land held for redevelopment and capital assets consisting of land, buildings, improvements, infrastructure, vehicles and equipment. These items provide services to the community and are not available for future spending. See the capital assets section of the PAFR for additional information. •Current Liabilities – Represents liabilities expected to be paid with cash within one year, including accounts payable, interest payable and unearned revenue.
•Long Term Liabilities – Includes the outstanding obligations for the City, including the City’s long-term debt for pensions, OPEB, compensated absences, claims outstanding and bonded debt. See the long-term obligations section of this PAFR for additional details on these liabilities. •Deferred Outflows/Inflows of Resources – Represents a consumption or acquisition of net position that applies to a future period and will not be recognized as an outflow of resources (expense/expenditure) or an inflow of resources (revenue) until that time.
•Net Position – Net investment in capital assets represents the City’s capital assets net of accumulated depreciation and related debt. The restricted portion is subject to externally imposed restrictions for activities such as capital projects, debt service, and community development and is not available for general operations. The unrestricted portion is available for general operations. The deficit amount shown is due to the City’s outstanding pension obligation.

The Statement of Net Position (Statement) presents information on the City’s assets and liabilities, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator as to whether the City’s financial position is improving or weakening. The Statement reflects the fact that the City’s net position increased by $23 million in the current fiscal year, due to increase in development of new homes along with additional sales tax revenue due to the pandemic and citizens being at home. Below are descriptions of items included in the Statements.
6 Packet Page 142 of 338Attachment 6 Page 8 of 19

Popular Annual Financial Report for FY 2020-21
Financial and Budgetary Information

Government-Wide Financial Analysis (Continued)
Description of Items in Statement of Activities
The following provides a brief description of the key items included in the Statement of Activities:

Revenues
Charges for Services – These revenues are collected for services to the public such as recreational classes, water fees and transit fares. Grants and Contributions – Represents funding received from other governments and organizations for the purpose of financing the operating and capital costs of a special program, such as the City’s affordable housing program. Taxes – Includes property, sales and transaction, franchise, transient occupancy and business license other taxes, which are described in more detail in a subsequent section of this PAFR.

Expenses
Admin / Finance – Includes the City Council, City Manager, Risk Management, Human Resources, contract City Attorney services, Information Technology, Finance and non-departmental programs. Police and Fire – Includes Patrol, Dispatch, Investigations, Crime Prevention, Code Enforcement, Fire Suppression, Prevention, and Inspection.
Public Works – Includes Maintenance of Trees, Streets, Parks, Facilities, Sewer, Building and Equipment, Assessment Districts.
Community Development – Includes Planning, Building and Economic Development. Housing – Includes Affordable Housing, Community Development Block Grant, Housing Authority and Community Resources.
Recreation / Golf – Includes Adult and Youth Activities, Aquatics and the City’s two golf courses. Water Treatment Plants – Accounts for the City’s two water treatment plants. Transportation – Accounts for the operations of the City’s transit system.

The City’s Statement of Activities is shown on the following page (in millions) for FY 2021 and 2020. The Statement of Activities summarizes by major revenues and expenses categories the receipt and expenditure of all funds during the year for governmental and business-type activities. Business-type activities include the City’s Water Utility, North Bay Water Treatment Plant, Golf and Transit Funds.

The total cost of all services this year was $239 million, with the amount for all governmental activities totaling $172 million and related program revenues covering $73 million (42%), resulting in a net cost of $99 million. The City paid for the remaining portion of governmental activities with taxes (some of which could only be used for certain programs) and other revenues, such as interest, general entitlements, the sale of property, and transfers. The cost for business-type activities this year was $67 million. Revenues received to offset these activities include charges for services of $56 million and $19 million from operating and capital grants and contributions. There was an increase of $9 million in the net position for business-type activities (including investment earnings and transfers) of $152 million.

7 Packet Page 143 of 338Attachment 6 Page 9 of 19

Popular Annual Financial Report for FY 2020-21
Financial and Budgetary Information

22%
12%
21%3%5%
6%
20%
6%
5%0%
Government-Wide Expenses by Source
$239 Million
Police
Fire
Public Works
Community Development
Recreation / Golf
Housing
Water treatment plants
Transportation
Admin / Finance
Interest on debt
23%
14%
19%
14%
19%
6%5%
Government-Wide Revenues by Source
$262 Million
Charges for services
Operating grants/contributions
Capital grants/contributions
Property taxes
Sales/transaction taxes
Other taxes
Other
2021 2020 $%
Revenues:

Program Revenues:

Charges for services 61$ 56$ 5$ 9%
Operating grants and contributions 37 27 10 37%
Capital grants and contributions 50 26 24 92%
General Revenues:

Property taxes 37 35 2 6%
Sales and transaction taxes 50 43 7 16%
Other taxes 14 15 (1) -7%
Other revenues 13 19 (6) -32%
Total revenues 262 221 41 19%
Expenses:

Administration 11 13 (2) -15%
Finance 2 2 - 0%
Police 53 50 3 6%
Fire 28 25 3 12%
Public works 49 45 4 9%
Community development 7 16 (9) -56%
Housing 15 15 100%
Parks and recreation 6 8 (2) -25%
Interest on debt 1 1 - 0%
Water utility 37 37 - 0%
North bay treatment plant 10 9 1 11%
Transportation 14 13 1 8%
Golf courses 6 4 2 50%
Total expenses 239 223 16 7%
Increase (decrease) in net position 23 (2) 25 -1250%
Net position July 1, as restated 600 602 (2) 0%
Net position June 30 623$ 600$ 23$ 4% Total - All Funds Change from 2020
Summary Statements of Activities (in millions)
8 Packet Page 144 of 338Attachment 6 Page 10 of 19

Popular Annual Financial Report for FY 2020-21
Financial and Budgetary Information

Financial Overview – General Fund

The General Fund is the main operating fund of the City. General Fund revenues exceeded the final budget by $9.5 million or 9%, due mainly to higher than anticipated collections of the City’s sales and transactions and use taxes, higher assessed property valuations, and an increase in development-related revenues. General Fund expenditures were under budget by $4 million or 3.5%, due mainly to City staff vacancies, offset by increased fire personnel overtime costs. $ Variance
Positive 2020
Budget Actual (Negative)Actual
Revenues:

Property taxes 36,341,000$ 36,479,332$ 138,332$ 34,836,685$ Sales tax 23,503,000 26,261,101 2,758,101 23,170,304 Transaction and use taxes (Measure P)20,772,000 23,328,607 2,556,607 19,704,286 Utility and franchise taxes 9,385,000 9,618,196 233,196 9,481,483 Other taxes 4,920,000 5,771,919 851,919 5,643,063 Licenses, permits and fines 2,659,000 4,078,924 1,419,924 2,920,083 Intergovernmental 431,984 573,360 141,376 605,418 Charges for services 4,886,867 6,310,413 1,423,546 6,171,143 Investment income 687,371 1,348,034 660,663 2,328,286 Miscellaneous 2,402,117 1,758,025 (644,092) 1,483,304 Total Revenues 105,988,339 115,527,911 9,539,572 106,344,055 Expenditures:

Current:

Administration 4,225,842 3,817,451 408,391 5,310,485 Finance 1,778,909 1,398,721 380,188 1,019,171 Police 47,481,857 47,189,271 292,586 44,173,273 Fire 22,926,183 24,600,363 (1,674,180) 21,575,867 Public works 13,181,048 13,262,014 (80,966) 11,878,627 Parks and recreation 7,567,747 4,719,771 2,847,976 6,121,707 Community development 4,600,569 4,108,255 492,314 3,314,942 Non-departmental 8,937,717 9,882,129 (944,412) 8,737,622 Total Expenditures 110,699,872 108,977,975 1,721,897 102,131,694 Excess revenues over expenditures (4,711,533) 6,549,936 11,261,469 4,212,361 Other Financing Sources (Uses):

Transfers in 1,248,863 1,248,863 - 811,291 Transfers out (4,640,406) (4,623,503) 16,903 (3,612,025)

Total other financing sources (uses)(3,391,543) (3,374,640) 16,903 (2,800,734) Net change in fund balance (8,103,076) 3,175,296 11,278,372 1,411,627 Fund Balance - Beginning of Year 49,119,997 49,119,997 - 47,708,370 Fund Balance - End of Year 41,016,921$ 52,295,293$ 11,278,372$ 49,119,997$ 2021
9 Packet Page 145 of 338Attachment 6 Page 11 of 19

Popular Annual Financial Report for FY 2020-21
Financial and Budgetary Information

Financial Long Term Outlook – General Fund

The General Fund’s major revenue sources
include property and sales / Measure P local
taxes, utility users and franchise taxes, transfer
and vehicle taxes and hotel taxes. Together
these groups comprise 87% of total budgeted
revenues for FY 20-21. The remaining 13%
includes revenues such as licenses and permits,
charges for services, miscellaneous income,
interest/rental income, and transfers.

A significant portion of the City’s General Fund
revenue is dependent on Measure P, a 1% local
transaction and use tax, which went into effect
April 1, 2013 and will expire in 2033. Measure P
revenue stabilized the General Fund and has
enabled the City to provide services that keep
the community safe and address infrastructure
needs.

The City was able to maintain General Fund
reserves at the City Council’s established level
of 20% of expenditures during FY 20-21, and to
present a balanced budget for the General Fund
for FY 21-22.

The below table provides an overview of the
City’s General Fund reserve levels over the next
four years. The City is currently projecting
several years of deficits, primarily due to rising
pension costs combined with the loss of
revenues resulting from COVID-19.

$47
$25
$13
$15
$5 $5 $4
General Fund Expenditures by Department
FY 2020-21
(in Millions)
Police 42%
Fire 22%
Public Works 11%
Admin/Finance/Non-Dept
13%
Transfer Out 4%
Parks and Recreation 4%
Community Development
4%
20-21 21-22 22-23 23-24 24-25 Trend
Revenues / Transfers In $116.8 $114.0 $118.3 $123.3 $125.8 Expenditures / Transfers Out 113.6 120.9 121.3 122.1 124.6 (Deficit)/Surplus for Year 3.2 (6.9) (3.0) 1.2 1.2
Available Ending Reserves $41.7 $34.8 $31.8 $33.0 $34.2 % of Expenditures 37% 29% 26% 27% 27%
General Fund Five Year Trend through Fiscal Year 2024-25 (In Millions)
$36
$26
$23
$10
$6 $14
General Fund Revenues by Category FY
2020-21
(in Millions)
Property Taxes 32%
Sales Tax 22%
Measure P Taxes 20%
Utility / Franchise Taxes
9%
Vehicle / Other Taxes
5%
Other 12%
10 Packet Page 146 of 338Attachment 6 Page 12 of 19

Popular Annual Financial Report for FY 2020-21
Financial and Budgetary Information

Government-Wide Financial Analysis General Fund Major Revenue Sources •
• 4
Sales Taxes - Sales and local sales transaction taxes are the City’s other major sources of revenue. The sales tax rate in Solano County is 8.375%, of which 1% is the "local" or City share and 1% reflects the local use tax. Retail sales nationwide for the year ended June were up 18.9% over the same month in the previous year. The chart below shows the change in sales tax for the past 10 years, including a comparison of FY 19-20 to FY 20-21 where the City’s sales tax collections were up 13%. Sales tax and Measure P taxes are projected to increase in FY 2021-22 by 3%, and increase by 4% in FY 2022-23 largely due to the opening of auto dealerships, fuel sales, and increased activity in building and construction.

Property Taxes - Pursuant to Proposition 13, passed by California voters in 1978, countywide property taxes are set at 1% of assessed value. Upon change of ownership, the property value will be reassessed to the current market value (sales price). The City receives approximately 17% of the 1% countywide property tax collected in the City. Property taxes are the largest source of revenue to the General Fund since the State passed legislation regarding the collection of the Vehicle License Fee previously collected separately from property taxes. Property taxes, excluding Motor Vehicle in Lieu Tax are approximately 21% of the City’s total General Fund revenues for FY 20-21. The collection of secured property taxes are expected to increase by approximately 4% for FY 21-22 and for future years, resulting from the increase in assessed values for properties within the city. It should be noted that residential properties represent approximately 70% of the total assessed property valuation within the City. 13%
-2%
6%
2%
-2%
2%
-2%
7%
9%
12%
5%
-5%-3%-1%1%3%5%7%9%11%13%15%
20-21
19-20
18-19
17-18
16-17
15-16
14-15
13-14
12-13
11-12
Average
% Change in Sales Tax Revenue1%
7%
6%
7%
7%
6%
6%
9%
9%
-2%
6%
-4%-2%0%2%4%6%8%10%
20-21
19-20
18-19
17-18
16-17
15-16
14-15
13-14
12-13
11-12
Average
% Change in Assessed Valuation11 Packet Page 147 of 338Attachment 6 Page 13 of 19

Popular Annual Financial Report for FY 2020-21
Financial and Budgetary Information

Financial Long Term Outlook – Other Funds
The following is a brief summary of the forecasts for the City’s enterprise and internal service funds, for which detailed information can be found in the City’s FY 20-21 ACFR:

The Water Utility operates two treatment plants, the Waterman Plant located off of Vista Grande and the North Bay Water Treatment Plant (NBR) located off of Peabody Road. The Water Funds’ forecast (excluding NBR) through FY 24-25 is below. The deficits shown below are due to the use of existing capital reserves for one-time projects including the Water Ozone Improvements project and North Texas Street water main replacement. The Water Utility will continue to monitor its revenues to maintain adequate reserve levels needed for future capital replacement requirements and maintain its required debt service coverage ratios required under its outstanding bonds:
20-21 21-22 22-23 23-24 24-25 Trend
Revenues / Transfers In $45.1 $38.9 $40.3 $41.0 $41.9
Expenses / Transfers Out 37.5 49.0 45.5 39.8 39.6
(Deficit)/Surplus for Year 7.6 (10.1) (5.2) 1.2 2.3
Ending Working Capital 72.4 62.3 57.1 58.3 60.6
Water Funds Five Year Trends through FY 2024-25
(in millions)
These funds account for the operations of the City’s Paradise Valley and Rancho Solano golf courses. The total number of taxable rounds increased at the City’s golf courses by 46% during the past fiscal year. The revenues for the Golf Course Funds have performed well during the coronavirus pandemic since it is one of the few sports that can be played socially distanced. Despite cost saving measures implemented by City staff in previous years, both Paradise Valley and Rancho Solano require financial support from the City. In addition, the clubhouses and other ancillary buildings are showing their age and are in need of rehabilitation. The City’s forecast for its Golf Funds through FY 24-25 is shown below:
20-21 21-22 22-23 23-24 24-25 Trend
Revenues $6.5 $5.6 $5.8 $5.9 $6.0
Transfer In from Admissions Tax 0.0 0.6 0.6 0.0 0.0
Expenses / Transfers Out 5.5 6.8 6.0 5.6 5.6
(Deficit)/Surplus for Year 1.0 (0.6) 0.4 0.3 0.4
Ending Working Capital 0.9 0.3 0.7 1.0 1.4
Golf Funds Five Year Trends through FY 2024-25
(in millions)
12 Packet Page 148 of 338Attachment 6 Page 14 of 19

Popular Annual Financial Report for FY 2020-21
Financial and Budgetary Information

140%
104%
340%
30%0%
50%
100%
150%
200%
250%
300%
350%
400%
Workers'
Compensation
General
Liability
OPEB Compensated
Absences
% of Liability Funded
Financial Long-Term Outlook – Other Funds (Continued)
These funds account for the operations of the City’s fixed route and demand response bus service, which receive grants for its operations and capital needs from federal, state and local governments. The forecast for the Transit Division projects that it will have sufficient funding to satisfy operational and bus replacement needs. Transit relies heavily on grants to satisfy its equipment replacement and capital needs, and there is no guarantee that these grants will be available in the future. In the event grant funds are not available, Transit will have to explore alternatives to reduce operating expenses and/or grow revenues. The City’s forecast for its Transit Fund through FY 24-25 is shown below, which assumes that grant funds will be received for the replacement of the bus fleet:
(in millions)
20-21 21-22 22-23 23-24 24-25 Trend
Revenues / Transfers In $12.4 $23.7 $23.6 $19.4 $20.2
Expenses / Transfers Out 13.7 23.7 23.6 19.4 20.2
(Deficit) / Surplus for Year (1.4) 0.0 0.0 0.0 0.0
Ending Working Capital $0.2 $0.2 $0.2 $0.2 $0.2
Transit Fund Five Year Trends through FY 2024-25
These funds account for many services provided to all
departments within the City, including the funding for
insurance and compensated absences. Since the City is
self-insured, it is prudent to fund a portion or all of the liability owed over time so other funds are not heavily affected in any one year. See Notes 9 and 13 in the
City’s FY 20-21 ACFR for the actuarial assumptions
used. The major self-insurance liabilities, other post- employment benefits (OPEB), and compensated
absences with their corresponding funding reserves as
of June 30, 2021 are listed below:

Workers'
Compensation
General
Liability
Other Post-
Employment
Benefits (OPEB)
Compensated
Absences
(Governmental
Activities only)
Cash Reserve $15,934,496 $3,748,385 $1,553,615 $5,570,126 Actuarial Liability $11,398,421 $3,597,828 $457,067 $18,815,275 % of Liability Funded 140%104%340%30%
13 Packet Page 149 of 338Attachment 6 Page 15 of 19

Popular Annual Financial Report for FY 2020-21
Financial and Budgetary Information

Cash and Investments (As of June 2021)
The City's investments listed below are in accordance with City's investment policy, which emphasizes the safety, liquidity and return of its investments. The portion of the portfolio not invested in the State Local Agency Investment Fund (LAIF) is invested with the City’s two investment advisors, Public Financial Management (PFM) and Chandler Asset Management (Chandler). The City also held $13.0 million in bank balances and $15.7 million in bond reserves in its California Asset Management Program (CAMP) portfolio as of 6/30/21. All of the City’s rated investments are rated “A” or higher at 6/30/21. See Note 4 in the City’s FY 20-21 ACFR for additional information regarding the City’s investments.
31%
12%48%
1%
7%
Investment Type
Agencies Supranationals
MTN Treasury
Corporate CDs / MM
$33 ,
9%
$87 ,
24%
$77 ,
21%
$71 ,
20%
$28 ,
8%
$64 ,
18%
By Fund (In Millions)
General Fund Special Revenue
Water Utility Internal Service
NBR Other
$325
$299
$328
$347
$290 $305 $320 $335 $350Jun 20Oct 20Feb 21Jun 21Portfolio Size (In Millions) Grand Percent
Summary by Maturity LAIF CAMP Chandler PFM Total of Total 0-1 month $72,005,974 $1,854,905 $2,346,568 $256,102 $76,463,549 22% 1-12 months 25,840,905 17,852,632 43,693,537 13%
1-2 years 38,619,875 64,100,561 102,720,436 30%
2-3 years 36,782,230 44,415,518 81,197,748 23%
3-4 years 22,067,685 9,189,057 31,256,742 9%
4-5 years 12,046,611 12,046,611 3%
Total Market Value $72,005,974 $1,854,905 $137,703,874 $135,813,870 $347,378,623 100% Total Amortized Cost 72,000,000 1,854,905 135,496,284 135,181,013 344,532,202 Amount Market Value Over / (Under) Cost $5,974 $0 $2,207,590 $632,857 $2,846,421 Estimated GASB 31 YTD Market Value Entry ($239,666)$0 ($2,075,434) ($2,088,337) ($4,403,437) -1.28% % of Portfolio 20.7% 0.5%39.6% 39.1% 100.0%
Average Maturity (years)0.81 0.14 2.16 1.91 1.77
Investment ManagersMoney Market Funds
Grand Percent
Summary by Instrument Type LAIF CAMP Chandler PFM Total of Total Agencies $9,483,187 $59,587,967 $40,528,154 $109,599,308 31%
Treasury 50,555,394 55,067,149 59,662,612 165,285,155 48% Medium Term Notes (MTN)20,527,531 22,495,030 43,022,561 12% Certificate of Deposits (CDs)7,531,825 999,930 10,632,143 19,163,898 6% Commercial Paper (CP)4,133,143 4,133,143 1%
Supranationals 2,239,829 2,239,829 1%
Money Market (MM) / Other 302,425 $1,854,905 1,521,297 256,102 3,934,729 1% Total Market Value $72,005,974 $1,854,905 $137,703,874 $135,813,870 $347,378,623 100% Yield to Maturity 0.26% 0.05%1.33% 0.66% 0.84%
Trailing 12 month yield 0.52% 0.15%1.54% 1.04% 1.19%
Money Market Funds Investment Managers
14 Packet Page 150 of 338Attachment 6 Page 16 of 19

Popular Annual Financial Report for FY 2020-21
Financial and Budgetary Information

Long-Term Obligations
The City continues to maintain good credit ratings on all of its debt issues, as evidenced by the AA rating assigned by Standard and Poor’s to its Pension Obligation Bonds (with AAA being the highest rating). The graph below summarizes the City’s long-term obligations (in millions). The City’s net OPEB liability, covering retiree health and dental payments is $.5 million. The City set aside $3.0 million in an internal service fund and in March 2018, the City established an irrevocable trust to help offset this liability. The City’s net OPEB liability relates to a closed plan with 24 members. The actuarial study prepared in the analysis of this obligation assumes a long-term rate of return of

5.85%. The health costs will decrease annually from 5.8% until the rate reaches 4.0%. The dental rate of 4% will increase annually. Annual payments for FY 20-21 totaled $240,812. See Note 13 in the City’s FY 20-21 ACFR for more information regarding the City’s net OPEB Liability.

The City’s total net pension liability with CalPERS for FY 20-21 was $198 million, based upon a measurement date of June 30, 2020. This represents a 72% funding of the total pension liability of $696 million. In addition, the City has pension obligation bonds totaling $29.2 million of principal and interest with annual debt service of $3.0 million.

See Note 12 of the City’s FY 20-21 ACFR for more information regarding the City’s pension obligation.

The City’s long-term obligations of governmental activities show an increase during FY 20-21 with an outstanding balance of $240 million as of June 30, 2021. The increase of $11 million to the net pension liability was due to CalPERS lowering the discount rate. Long-term obligations for business-type activities decreased in FY 20-21 by $2 million, to $98 million, a result of scheduled annual debt service payments. Refer to Note 8 in the footnote section of the City’s FY 20-21 ACFR for a more detailed listing of the City’s outstanding debt and Notes 18 and 19 in the City’s FY 20-21 ACFR for more information on Successor Agency debt as well as non-commitment debt. 59%9%
20%
5%4%
1%2%
Pension
Pension Bonds
Water
Leave
Insurance
Golf
Other
Long Term Debt by Type
2021 2020 2021 2020 2021 2020
General Obligation Bonds 7$ 7$ 7$ 7$
Pension Obligation Bonds 29 31 29 31
Utility-Water Revenue Bonds 67$ 71$ 67 71 Recreational Revenue Bonds 1 2 1 2
Long-Term Notes Payable 1 - 1
Compensated Absences 19 18 2 2 21 20
Claims and Judgments 15 15 15 15
Net OPEB Liability 1 - 1
Net Pension Liability 170 159 28 25 198 184
Total Indebtedness 240$ 232$ 98$ 100$ 338$ 332$ Governmental Activities Business-Type Activities Total
Summary of Long-Term Indebtedness (in millions)
15 Packet Page 151 of 338Attachment 6 Page 17 of 19

Popular Annual Financial Report for FY 2020-21
Financial and Budgetary Information

Capital Assets

For FY20-21, the value of the City’s capital assets at cost before depreciation was $1.1 billion, with the changes detailed by category in the table below. Major capital projects in FY20-21 include:

• West Texas Gateway Project - $1.3
million

• North Texas Water Main
Replacement - $6.0 million

• Various Street Resurfacing and
Pavement Maintenance Projects -
$3.3 million

• Allan Witt Community Park
Projects - $3.6 million

Asset Type
Original Cost as
Reported 6/30/2021 % of Total
Net Additions
(Deletions) for
Fiscal Year
Annual
Depreciation
at Cost
Governmental Activities
Land / Construction in Progress 59,596,247$ 5% (16,833,698)$ N/A Buildings / Improvements 293,349,118 27% 22,066,814 7,520,535 Vehicles and Equipment 53,692,802 5%6,975,712 2,902,602 Infrastructure
Streets 187,598,050 17%6,127,411 4,215,340 Storm Drains 49,268,247 5%1,780,923 852,795 Sewer Pipes/Pump Stations 16,137,335 1%563,887 286,059 Streetlights/Traffic Signals 28,136,797 3%1,893,413 464,854 Bridges/Retention Basins 30,356,768 3%350,452 513,279 718,135,364 66% 22,924,914 16,755,464 Business-type Activities
Water Utility 230,210,068 21%7,704,453 6,078,005 North Bay Treatment Plant (NBR)67,048,838 6%2,105,975 1,613,712 Transit 37,083,847 3%154,240 1,418,907 Golf Land and Improvements 31,321,078 3%77,609 299,321 365,663,831 33% 10,042,277 9,409,945 Total Capital Assets 1,083,799,195 32,967,191$ 26,165,409$ Less Accumulated Depreciation (547,071,362)
Net Capital Assets 536,727,833$
6%
35%
9%
48%
2%
Fixed Assets by Type -At Cost
Land / Non Depreciable
Buildings / Improvements
Equipment / Vehicles
Infrastructure
Construction in Progress
16 Packet Page 152 of 338Attachment 6 Page 18 of 19

Popular Annual Financial Report for FY 2020-21
Financial and Budgetary Information

Capital Improvement Plan

Some of the major projects for fiscal year 2021-22 (and their estimated costs) include the following:

• Various City Park Improvements (Allan Witt, Linear Trail) ($3.8 million), which includes improvements to play areas and skate park, as well as improvements to the Linear Park Trail to add amenities. This project is funded with AB 1600 Park funds and Quimby Act funds.

• North Texas Water Main Replacement ($6.0 million). This project is funded with water fees.

• Various Street Resurfacing and Pavement Maintenance Project ($4.0 million), which includes East Travis Blvd (North Texas to Sunset, and Air Base Parkway (Peabody Rd to Air Force Base). This project is funded primarily with General and gas tax funds.

• West Gateway Project ($2.7 million) which will modify the eastbound I-80 off-ramp to provide direct bus access to the Fairfield Transportation Center (FTC), modify three signalized intersections along the Beck Avenue corridor. This project is funded with AB 1600 Streets funds and State and regional grants.

The City’s adopted capital improvement program (CIP) for FY 21-22 totals $62.9 million. The CIP is designed to meet community needs, with special emphasis on those projects that contribute to the City’s economic vitality and quality of life, including Fire Station 39, Fire Station 36, Westnet Alerting System, West Texas Gateway Project, Annual Street Pavement Maintenance, Water Ozone Improvements, North Texas Water Main Replacement, New Enterprise Resource Planning (ERP) System, as well as improvements at Allan Witt, Linear Trail and other community and neighborhood parks. It should be noted that there is approximately $82 million of unfunded capital and maintenance projects outstanding over the next five years, the largest being Streets and Public Buildings.

27%
1%26%8%
9%
8%
21%
Capital Improvement Plan FY 2021 -22
(In millions)Water/NBR $16.7
Streets $0.4
Transit $16.5
Technology $5.0
Parks $5.6
Public Buildings $5.2
Other $13.5
17 Packet Page 153 of 338Attachment 6 Page 19 of 19

Agenda Item No: 17.

AGENDA REPORT
DATE:May 3, 2022
TO:Mayor and City Council
FROM:David Gassaway, Interim City Manager
SUBJECT:Resolution 2022100 of the City Council of the City of Fairfield Adopting a Successor Memorandum of Understanding Between the City and the Fairfield Employees’ Association
RECOMMENDED ACTION
Adopt resolution.

STATEMENT OF ISSUE
Adopt the resolution for the new successor Memorandum of Understanding between the City and Fairfield Employees’ Association (FEA) to reflect the amendments made to the agreement as a result of successful bargaining between the parties.

DISCUSSION
Bargaining was postponed for the successor Memorandum of Understanding (MOU) between the City and FEA in the summer of 2021. The parties agreed that bargaining would be difficult because of the disruptions caused by the COVID19 pandemic. The parties agreed to extend the expiration date of the MOU from June 30, 2021, to June 30, 2022.

In September of 2021, City and FEA representatives began negotiating a successor MOU. The parties came to a negotiated settlement for the successor MOU, and the members of FEA have voted to ratify this new agreement. Therefore, the staff recommends the City Council adopt the resolution for the new successor MOU with FEA. This report provides a summary of the agreements made to the successor MOU:

The new term of this successor MOU will begin on July 1, 2022, and expire on June 30, 2025.

Effective the first pay period of each fiscal year, the cost of living adjustments agreed to are the following:

July 2022: 6%
July 2023: 2.5%
July 2024: 5%
Enhancements and clarifications were made to the following contract provisions:

Standby/Call Back
Overtime
Packet Page 154 of 338

Agenda Item No: 17.AGENDA REPORTDATE:May 3, 2022 TO:Mayor and City CouncilFROM:David Gassaway, Interim City ManagerSUBJECT:Resolution 2022100 of the City Council of the City of Fairfield Adopting a SuccessorMemorandum of Understanding Between the City and the Fairfield Employees’AssociationRECOMMENDED ACTIONAdopt resolution.STATEMENT OF ISSUEAdopt the resolution for the new successor Memorandum of Understanding between the City andFairfield Employees’ Association (FEA) to reflect the amendments made to the agreement as a resultof successful bargaining between the parties. DISCUSSIONBargaining was postponed for the successor Memorandum of Understanding (MOU) between the Cityand FEA in the summer of 2021. The parties agreed that bargaining would be difficult because of thedisruptions caused by the COVID19 pandemic. The parties agreed to extend the expiration date of theMOU from June 30, 2021, to June 30, 2022.In September of 2021, City and FEA representatives began negotiating a successor MOU. The partiescame to a negotiated settlement for the successor MOU, and the members of FEA have voted to ratifythis new agreement. Therefore, the staff recommends the City Council adopt the resolution for the newsuccessor MOU with FEA. This report provides a summary of the agreements made to the successorMOU:The new term of this successor MOU will begin on July 1, 2022, and expire on June 30, 2025.Effective the first pay period of each fiscal year, the cost of living adjustments agreed to are thefollowing:July 2022: 6%July 2023: 2.5%July 2024: 5% Enhancements and clarifications were made to the following contract provisions:

Standby/Call Back
Overtime
Holidays (Adding Juneteenth as an official holiday)
Mandatory Rest Period
Longevity Pay
Compensation Study
Deferred Compensation
Medical/Dental
Tuition/Boot Reimbursements
Retiree Healthcare Savings
The redlined successor MOU is attached to this report.

FINANCIAL IMPACT
The total threeyear cost of the amendments made to the successor MOU between the City and FEA is $7,978,044; $4,191,388 mainly paid from fund 011 (General Fund) and the remaining $3,786,656 mainly paid from Enterprise and Internal Service Funds.

PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
N/A
ALTERNATIVE ACTION
The City Council may not approve the new successor MOU between the City and FEA and direct City staff to negotiate different terms than recommended above.

STAFF CONTACT
Farbod Pirouzmand, Director of Human Resources
(707) 4287397
[email protected]
COORDINATED WITH
City Attorney's Office, City Manager's Office, Finance Department ATTACHMENTS:

Description
Proposed Resolution
Redlined FEA MOU
REVIEWERS:

Reviewer Action Date
Pirouzmand, Farbod Approved 4/19/2022 10:04 PM
Pirouzmand, Farbod Approved 4/19/2022 10:13 PM
Pirouzmand, Farbod Approved 4/19/2022 10:14 PM
Alexander, Amber Approved 4/22/2022 2:24 PM
Alexander, Amber Approved 4/22/2022 2:29 PM
Packet Page 155 of 338

CITY OF FAIRFIELD

RESOLUTION NO. 2022-100

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FAIRFIELD

AMENDING THE TERMS AND CONDITIONS OF THE MEMORANDUM OF UNDERSTANDING (MOU) FOR THE FAIRFIELD EMPLOYEES’ ASSOCIATION

WHEREAS, the City Council of the City of Fairfield enacted the Employer-Employee Relations Resolution No. 2001-185, pursuant to the Meyers-Milias-Brown Act (MMBA), California Government Code Section 3500, et. Seq, and representatives of the city manager have met and conferred in good faith with representatives of the Fairfield Employees’ Association, the recognized employee organization for certain employees; and

WHEREAS, the Fairfield Employees’ Association has held a successful ratification vote.

NOW, THEREFORE, THE COUNCIL OF THE CITY OF FAIRFIELD HEREBY RESOLVES:

Section 1. That it approves the Memorandum of Understanding as outlined in Exhibit A for the Fairfield Employees’ Association.

Section 2. The city manager is authorized and directed to do all things necessary to implement this resolution.

PASSED AND ADOPTED this 3rd day of May 2022, by the following vote:

AYES: COUNCILMEMBERS: PRICE / BERTANI / MOY / PANDURO / TIMM / TONNESEN / VACCARO

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

MAYOR

ATTEST:

____________________________

CITY CLERK
Packet Page 156 of 338Attachment 1 Page 1 of 1

MEMORANDUM OF UNDERSTANDING

CITY OF FAIRFIELD
&
FAIRFIELD EMPLOYEES’

ASSOCIATION
July 01, 2022 - June 30, 2025

00000

Packet Page 157 of 338Attachment 2 Page 1 of 47

Table of Contents

Title      Page Number
Article 1 Recognition        1
No Discrimination        1
Article 2 MOU Controlling       1
Article 3 Term Agreement       1
A. Modification of Agreement   1
Article 4 Management Rights       2
Article 5 Compensation Wages       2
A. Wage Adjustments      2
B. Compensation Adjustments   2
C. BI‐Lingual Pay       4
D. Shift Differential       4
E. Certification Premium Pay   5
F. Training Pay       5
G. Dispatcher Proficiency Pay   5
H. Out of Class Pay       5
I. Standby/Callback       6
J. Longevity Pay       8
K. Compensation Pay      8
L. Mandatory Rest Periods      8
Article 6 Probationary Period and Merit   8
A. Probationary Period and Merit   8
B. Promotion/Demotion/Flexible Staffing   9
C. Performance Appraisal      10
Article 7  Leave         10
A. Holidays        10
B. Personal Leave       11
C. Vacation        11
D. Compensatory Time Off/Overtime/Fixed, Flexible
and Alternative Schedules   12
E. Sick Leave       12
F. Bereavement Leave      13
G. Union Business Time      14
Article 8 Health, Life Insurance/Other Benefits    14
A. Medical/Dental       14
B. Vision        15
C. Life Insurance       16
D. Deferred Compensation      16
E. Retiree Medical       16
F. Short and Long‐Term Disability   17
Article 9 Uniform Allowance/Boot Reimbursement   18
A. Uniforms        18
Packet Page 158 of 338Attachment 2 Page 2 of 47

B. Boot Reimbursement      19
C. Tools and Tool Allowance   19
D. Prescription Safety Glasses   19
Article 10 Tuition Reimbursement      19
Article 11 Certification /License Fee      20
Article 12 Retirement/PERS       20
A. PERS Benefits       20
B. Employee Contribute Rate   21
C. EPMC        21
D. Pre‐Tax Employment Contribution   21
E. Social Security       21
F. Medicare        21
Article 13 Light Duty        21
Article 14 Grievance Procedure       23
A. Definition of Grievance      23
B. Purpose        23
C. Exclusions from Grievance Procedure   23
D. Steps in the Grievance Procedure   23
E. General Provisions      24
Article 15 Weingarten Rights       25
Article 16 Discipline Procedure       25
A. Written Reprimands      25
B. Suspensions, Demotions or Termination   26
C. Time Limitations       28
Article 17 Layoff         28
Article 18 Layoff Procedure       29
A. Statement of Intent      29
B. Notification        29
C. Employment Status and Order of Layoffs   29
D. Vacancy and Demotion      29
E. Displacement of Less Senior Employees   29
F. Seniority        30
G. Re‐employment List      30
H. Duration of Re‐employment List   30
Article 19 Cross Training        31
Article 20  Transfer Procedure       31
Article 21 Reclassification Procedure      31
Article 22 Miscellaneous Items       32
A. FEA Notification       32
B. Payroll Deduction and Pay Over   33
C. Productivity       33
D. Health and Safety      33
E. Retirement Planning      33
F. Compliance with ADA and Other Civil Rights laws  34
Packet Page 159 of 338Attachment 2 Page 3 of 47

Article 23 Reasonable Suspicion Drug and Alcohol Testing   34 Article 24 Severability Provision       34
Article 25 Contracting Out       34
Article 26 Pro Rata Part Time       34
Article 27 Union Security        34
Signature Page         37

Packet Page 160 of 338Attachment 2 Page 4 of 47

1 MEMORANDUM OF UNDERSTANDING REACHED BETWEEN
THE REPRESENTATIVES OF THE CITY OF FAIRFIELD AND
THE SERVICE EMPLOYEES INTERNATIONAL UNION/FAIRFIELD
EMPLOYEES' ASSOCIATION

Whereas, the Service Employees International Union, Local 1021 (SEIU) represents the full‐time and pro rata (as defined in Section 43B) general employees and; Whereas, the SEIU and City have agreed the benefits set forth in this Memorandum of Understanding shall apply to employees represented by the SEIU;

Now, therefore, the City of Fairfield and the SEIU agree to this Memorandum of Understanding as follows:

ARTICLE 1. RECOGNITION
The City hereby recognizes Service Employees International Union, Local 1021, CTW, CLC as the exclusive bargaining agent and representative of City employees represented in the FEA bargaining unit.

NO DISCRIMINATION
In the administration of this Agreement, no person covered by this MOU shall be discriminated against because of race, national origin, religion, sex, sexual orientation, disability, age, marital status or on the basis of membership or non‐membership in the Union, or participation in the activities of the Union.

ARTICLE 2. MOU CONTROLLING
The City's Employee Relations Resolution shall govern City employment, unless the MOU conflicts, in which case the MOU shall control. All City management employees will be provided a copy of this MOU, with instructions that the MOU should be reviewed and followed for all FEA employees, except where a specific section states that this MOU only applies to a certain specific group of FEA‐represented employees.

ARTICLE 3. TERM AGREEMENT
The term of this agreement shall be from July 1, 20172022 through June 30, 20212025.

A. Modification of Agreement
Either party may serve written notice and initial proposals on the other not later than ninety (90) days prior to the expiration of this Agreement, of its desire to amend this agreement.

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2 ARTICLE 4. MANAGEMENT RIGHTS
The City shall retain the sole right and authority at its discretion to maintain the order and efficiency of the public service entrusted to it, and to operate and manage the affairs of the City government in all aspects, including, but not limited to, all rights and authority held by the City prior to the signing of this Agreement, except where abridged by a provision or provisions of this Agreement. The Association recognizes that the rights of the City through its Council and Management include, but are not limited to, the exclusive right to determine the mission of its constituent departments and commissions; set standards of service; determine the procedures and standards of selection for employment and promotion; direct its employees, take disciplinary action; relieve its employees from duty because of fiscal limitations, lack of work or for other legitimate reasons; maintain the efficiency of government operations, determine the methods, means and personnel by which government operations are to be conducted; determine the content of job classifications; take all necessary actions to carry out its mission in emergencies; and to exercise complete control and discretion over its organization and the technology of performing its work, including but not limited to, the creation and management of limited‐term classifications.

ARTICLE 5. COMPENSATION/WAGES
A. Wage Adjustments

 Effective the first full pay period in July 2022, the City will increase base wages for all represented classifications in the bargaining unit by 6.0%

 Effective the first full pay period in July 2023, the City will increase base wages for all represented classifications in the bargaining unit by 2.5%

 Effective the first full pay period in July 2024, the City will increase base wages for all represented classifications in the bargaining unit by 5.0%  5. Compensation/Wages
 Wage Adjustments
 Effective the first full pay period following City Council adoption of the successor MOU, the City will increase base wages for all represented classifications in the bargaining unit by 4 percent;
 Effective the first full pay period in July, 2018, the City will increase base wages for all represented classifications in the bargaining unit by 4.0%.  Effective the first full pay period in July, 2019, the City will increase base wages for all represented classifications in the bargaining unit by 4.0%.  Effective the first full pay period in July, 2020, the City will increase base wages for all represented classifications in the bargaining unit by 4.0%.

B. Compensation Adjustments
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3 The process for market comparison compensation adjustments ended with the final negotiated adjustment in 2007. The parties agree that the process for market comparison compensation adjustments, as described in Section 7. of the MOU that expired June 30, 2008, will not be implemented during the term of this MOU. The parties agree to leave in language from the expired MOU to describe the process for market comparison compensation adjustments, in the event the parties negotiate such compensation adjustments in a subsequent MOU. Retaining a reference to language for market comparison compensation adjustments is not grievable and does not obligate the City to implement such adjustments absent an explicit future agreement.

Process for market comparison adjustments (not effective during term of this MOU):

The City will gather compensation data (base salary less any employee PERS contribution not picked up by the employer) for the benchmark positions represented by FEA, from each of the thirteen survey cities, as identified in the policy adopted by the Fairfield City Council in Resolution No. 2000‐156. The internal salary relationships specified in Resolution No. 2000‐156 will be used in analyzing compensation for the FEA represented classifications Below are the thirteen (13) survey cities.

1. Alameda

2. Antioch

3. Concord

4. Hayward

5. Livermore

6. Napa

7. Pittsburg

8. Pleasanton

9. Richmond

10. Sacramento

11. San Leandro

12. Vacaville

13. Vallejo
Prior to commencement of the data collection, a City representative from the Human Resources Department will meet with designated members of FEA to review the benchmark positions recommended by the City. The City will then collect the data, and upon completion of said data collection, review the data with FEA. The City will Packet Page 163 of 338Attachment 2 Page 7 of 47

4 follow the internal salary relationships as established in Resolution No. 2000‐156 to analyze the data and make salary adjustments accordingly. The City will then meet with FEA to review these salary adjustments prior to implementation.

If, as of March 31st of the year in which compensation is analyzed, the base salary compensation is below the mean of the survey cities, an adjustment will be made to the FEA represented benchmark positions and the related positions based on the internal salary relationship guidelines as established in Resolution No. 2000‐156. The City will inform the FEA on or between March 1st and May 31st which positions will be affected and the reason therefore. This base salary compensation adjustment will be effective the first full pay period of July, of the year in which the adjustment is made.

The City agrees that in March 2015 in conjunction with the Union, a market study will be conducted on benchmark classifications.

C. Bi‐Lingual Pay
Effective January 1, 2009, each employee who meets the City's certification and eligibility requirements shall be compensated at an additional $100/month, beginning the pay period following testing and certification. The City will choose the languages qualifying for bi‐lingual pay. Department Heads will designate the classifications for bi‐lingual pay.

D. Shift Differential
Shifts Defined:

 Shifts starting at 4:00 a.m. or later, but before 12:00 noon, are considered day shift.
 Shifts starting at 12:00 noon or later, but before 6:00 p.m., are considered swing shift.

Shifts starting at 6:00 p.m. or later, but before 4:00 a.m., are considered grave shifts.

A shift is a work period consisting of a minimum of eight (8) consecutive hours.

The City will pay a shift differential of 2.5% of salary to FEA employees in Dispatcher, Lead Dispatcher, and Water Plant Operator I, II, III and Senior Water Plant Operator classifications, who perform shift work that includes swing or graveyard.

The Records Assistant I & II will receive a 5% shift differential. Shift differentials shall be included as part of gross pay for purposes of computing overtime.

Base salary, excluding shift differential, will be used for market surveys and internal alignments.

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5 The City will provide a 2.5% shift differential for Community Service Officers and Equipment Mechanics who are working a swing or grave shift as defined in paragraph D above.

Base salary, excluding shift differential, will be used for market surveys and internal alignments.

The City will provide a 2.5% shift differential for the employees working in the Custodian class series who are working a swing or grave shift as defined in paragraph D above.

Base salary, excluding shift differential, will be used for market surveys and internal alignments.

E. Certification Premium Pay
Effective the first full pay period in January 2009, the City will compensate employees $100 per month who are required by the City to have and maintain the following certifications: Certified Playground Inspector and Qualified Applicator Certificate.

The City and FEA agree to review the Equipment Mechanic position assigned to the Fire Department within 90 days of Council approval of the agreement to study possible certification premium pay for fire apparatus certifications.

F. Training Pay
The City will provide a 2.5% differential for employees in those Departments that have a formalized training program that has been approved by the Department. Head and the City Manager's Office. Employees shall only receive the differential for those pay periods where the majority of their shifts are assigned for training.

G. Dispatcher Proficiency Pay
Dispatchers who have been at the top step in their pay scale for at least one year and who have all eligibility requirements will receive a lump sum proficiency bonus equal to 5% of salary at top step. Eligibility certification exams are conducted twice a year. The certification period is for a period of three years and begins accruing the first of the month following the dispatcher's completion of six months at top step.

The bonus, accrued on monthly basis, will be paid the on the first pay‐date in December (covering the period of December 1 of the previous year to November 30 of the current year). Lead dispatchers do not receive a bonus pursuant to this provision.

H. Out of Class Pay
Employees assigned to work out‐of‐class shall receive a 5% differential (calculated on their base rate of pay) on the following conditions:

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6 1. The assignment is made to a higher class that has a 5% or greater pay differential;

2. The assignment requires the employee to perform duties included in the job description for the higher class due to either a temporary vacancy or specific short‐term work;

3. The assignment is approved by the affected Department Head, or designee; and,

4. The 5% increase will take effect following the 14th consecutive calendar day of the out‐of‐class assignment.

Such temporary assignments are entirely discretionary on the part of the City; no property or other rights may be asserted by grievance or otherwise concerning the City's assignment, reassignment or refusal to assign or reassign employees to an out‐ of‐class position.

The entire period of assignment at the higher acting classification, including the initial work demonstration period, may not exceed 60 working days, except by mutual agreement of the City and the employee. Extensions beyond 60 working days also require pre‐approval of the City Manager or his/her designee.

Employees who are members of FEA/SEIU and are given a higher classification acting duty assignment in a classification in another bargaining unit, will continue to have all pay and benefits determined by this MOU.

The City will not circumvent the intent of this section by using a rotation of various employees in two‐week increments. Time served when receiving out of class pay does not count towards the employee's probationary period for the higher classification should the employee be subsequently appointed in to that position.

I. Standby/Callback
Employees assigned to work in groups, which operate in a 24/7/365 working environment or in situations deemed appropriate by a department head shall be included for participation in callout/standby.

In the event the department/division has the need for employees to be available for standby work, the employer shall establish a standby list. The employer shall first ask volunteers who wish to be placed on the standby list. In the event there are not an adequate number of volunteers, the employer shall assign all employees in the affected work group to be placed on the standby list. A standby rotation list shall be Packet Page 166 of 338Attachment 2 Page 10 of 47

7 established to ensure equitable distribution of shifts. All employees scheduled to work standby shall be compensated as identified in the following paragraphs.

1. Those employees scheduled for normal standby (from the end of the workday on Friday until the beginning of the workday on the following Monday) outside of City days of
operation will be compensated for twelve (12) six (6)hours of either straight time pay or straight time compensatory time off for all non‐scheduled workdays employees are scheduled for standby.. When the standby is extended by a holiday either on the Friday before or the Monday following the weekend the straight time compensation will be increased by six (6) hours.

2. Those employees scheduled for midweek holiday standby (those holidays falling Tuesday, Wednesday or Thursday) will be compensated for six (6) hours per holiday at straight time pay or straight time compensatory time off.

3. 3. When an employee who is on regularly scheduled standby (weekend or
holiday) is called out for duty, the employee will be compensated at the overtime rate to the closest quarter of an hour. Round trip travel time from and to the employee's home will be considered compensable time. If the time between the start of the callout and the release from the callout is less than one hour, the employee will receive one hour of overtime compensation. Multiple callouts in the same time period shall be paid straight through from the start of the initial callout through the last callout when the employee is released. In such instances, there shall not be multiple one‐hour minimums.

4. 4. When an employee who is not on regularly scheduled standby is called out for duty, the employee will be compensated at the overtime rate to the closest quarter of an hour. Round trip travel time from and to the employee's home will be considered compensable time. If the time between the start of the callout and the release from the callout is less than twofour hours, the employee will receive two four hours of the overtime compensation.

Multiple callouts in the same time period shall be paid straight through from the start of the initial callout through the last callout when the employee is released. In such instances, there shall not be multiple two‐ hour minimums.After the initial four hour call out period, for subsequent call outs, employees shall receive two hours of overtime compensation.

Multiple callouts in a callout period shall be paid straight through from the start of the initial callout through the last callout within the same callout period.

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8 5. Employees in the Water Distribution/Sewer Division of Public Works who are on voluntary standby from Monday through Thursday will be compensated at the overtime rate to the closest quarter of an hour when they are called out for duty. Round trip travel time from and to the employee's home will be considered compensable time for employees who live within the required radius, the radius is 35 minutes driving time to the worksite. If the time between the start of the callout and the release from the callout is less than two hours, the employee will receive two four hours, the employee will receive four hours of overtime compensation. Multiple callouts in the same time period shall be paid straight through from the start of the initial callout through the last callout, when the employee is released. In such instances, there shall not be multiple two‐hour minimums. Such employees on voluntary standby have the ability to trade coverage with another employee on the voluntary standby list. Employees who do not wish to work on the night they signed up for voluntary standby have the ability to talk with their supervisor in advance of a proposed change and request relief for that night or nights. Employees may also request from their supervisor to be removed from the voluntary standby list. After the initial four hour call out period, for subsequent call outs, employees shall receive two hours of overtime compensation. Multiple callouts in a callout period shall be paid straight through from the start of the initial callout through the last callout within the same callout period.

6. Employees, including shift operators called back to work who have to work in excess of four (4) hours after midnight may arrive at work past their normal starting time that same day by one‐half (1/2) the amount of time they worked past midnight. One‐half (1/2) the amount of time is calculated at straight time, e.g., if an employee worked from midnight to 4 am, the employee may arrive at work two (2) hours past his or her normal starting time that day. If the employee wishes to take additional time off on the same day, the employee shall use accrued leave, (i.e., compensatory or vacation leave.)

67. Beginning January 1, 2009, employees who are called at home by their supervisor shall be paid for the entire call when such call exceeds 10 minutes.

This time shall be considered as time worked and will be compensated at the appropriate rate of pay.

J. Longevity Pay
Full time FEA members will be eligible for additional increases based on their consecutive years of service at the City of Fairfield. The longevity increases shall be as follows:

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9  10 years – 0.50%
 15 years – 0.75%
K. Compensation Study
The City agrees to conduct a third‐party compensation study for all FEA classifications.

The results of the equity study shall be implemented no later than the term of this agreement. Prior to conducting the compensation study, the parties agree to meet and negotiate on the definitions of total compensation, the consultant both parties use and agree on the benchmark classifications for which the study will be conducted. The Union agrees to pay for half of the study.

L. Mandatory Rest Periods

1. Crime Scene Investigators
Crime Scene Investigators called out or working overtime shall be subject to a mandatory minimum rest period of 8 consecutive hours between the end of the preceding regular work shift and the start of the next regularly scheduled shift.

When the mandatory rest period occurs during all or part of the normal scheduled work shift, Crime Scene Investigators shall be compensated without the use of their leave accruals.

2. Landscape, Traffic and Water Distribution Divisions Field employees working in the landscape, Traffic and Water Distribution Divisions called out or working overtime shall be subject to a mandatory minimum rest period of 9 consecutive hours between the end of the preceding regular work shift and the start of next regularly scheduled shift. When the mandatory rest period occurs during all or part of the normally scheduled work shift, field employees in the above listed divisions shall be compensated without the use of their leave accruals.

ARTICLE 6. PROBATIONARY PERIOD AND MERIT
A. Probationary Period and Merit

Employees represented by this bargaining unit, typically serve a 12‐month probationary period.

Probationary periods may be extended for an additional six (6) months, if the employee is not performing satisfactorily. The probationary period is intended to be an extension of the testing process.

When a probationary employee is absent from work due to an industrial injury, the City will not extend the length of the probationary period.

When an FEA represented employee is promoted to another FEA represented classification, the probationary period may be six months as long as they have successfully completed probation in their current position. The six‐month probationary Formatted: Font: (Default) +Body (Calibri), 12 pt
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10 period may be extended an additional six months if performance is unsatisfactory. This six month probationary period does not apply if promoting into a management position (non‐FEA).

If an FEA employee who is promoted to another FEA represented position fails to complete probation, the individual will demote back to their previous position held immediately before the promotion.

B. Promotion/Demotion/Flexible Staffing

1. Promotion: Upon promotion the employee will receive the salary step of the new classification closest to 5% without going under 5%.

A promotion is defined as moving from one classification to another classification where the top step salary of the new classification exceeds the top step salary of the previous classification. Employees who are promoted will serve a 6‐month probationary period.

a. Demotion
Upon demotion, the employee will go to the same step as they had in their previous classification prior to the promotion. Employees who are being demoted and have not held a previous classification with the City will be placed at the same step in the new classification as that held in the previous classification.

A demotion is defined as moving from one classification to another where the top step salary of the new classification is less than the top step salary of the previous classification.

b. Flexible Staffing: An employee who moves from a Ito a II position, will receive the salary step of the new classification closest to 5% without going under 5%.

A flexibly staffed position is defined by a classification series that contains a I and II. For example, Utility Worker I and Utility Worker II. Employees move from a I to a II designation upon completing the minimum qualifications of the II classification and upon recommendation of management.

c. Merit Date: the annual review date will change to correspond to the effective date of the promotion, demotion or flexing of the position.

C. Performance Appraisal
Performance evaluations for full‐time and part‐time employees shall be conducted, as a minimum, at least once each year on the anniversary of their merit date. Performance Packet Page 170 of 338Attachment 2 Page 14 of 47

11 evaluations may, at the discretion of the Department Head, be conducted more frequently than once each year. Employees shall have the right to review their performance evaluation with the evaluating supervisor, and the employee may submit a written response to accompany the evaluation in the employee's personnel file.

Beginning January 1, 2009, if the performance evaluation has not taken place within thirty (30) days of the anniversary date, the employee will receive their step increase, if eligible, retroactive to their merit anniversary date. The granting of the merit increase under this paragraph does not assume the employee is rated as satisfactory for the rating period.

ARTICLE 7. LEAVE

A. Holidays
The City shall grant a total of thirteen fourteen (134) paid holidays as follows:

 New Year’s Day
 New Year’s Eve
 Martin Luther King Day
 President’s Day
 Memorial Day
 Juneteenth (Observed June 19)
 Labor Day
 Indigenous People’s Day/Columbus Day
 Veteran’s Day (Observed Nov 11)
 Thanksgiving
 Thanksgiving – Day after
 Christmas Eve
 Christmas Day
 New Year’s Eve

Holidays that fall on a Saturday shall be observed on the previous Friday and holidays that fall on a Sunday shall be observed on a succeeding Monday.

Sequential holidays falling on a Friday/Saturday or a Sunday/Monday shall be celebrated on a Friday and Monday.

To be eligible for holiday compensation (including in‐lieu holiday credit), a new hire must be in a paid status on the regularly scheduled workday immediately preceding the observed holiday.

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12 Those represented employees who receive in‐lieu holidays shall receive the same total number of in‐lieu holidays as listed above for the other employees. At the employee's option, up to three of those holidays shall be paid, and the remainder will be added to vacation accrual.

Holidays that fall on a Saturday shall be observed on the previous Friday and holidays that fall on a Sunday shall be observed on a succeeding Monday. Sequential holidays falling on a Friday/Saturday or a Sunday/Monday shall be celebrated on a Friday and Monday.

Those represented employees who receive in‐lieu holidays shall receive the same total number of in‐lieu holidays as listed above for the other employees. At the employee's option, up to three of those holidays shall be paid, and the remainder will be added to vacation accrual.

B. Personal Leave
Current annual accrual is 24 hours. Effective the first full pay period in January 2009, FEA employees shall accrue 32 hours of personal leave annually. FEA employees shall be allowed to cash out up to 40 hours of personal leave earned on or after April 1, 1994. All personal leave accrued by FEA employees, shall be capped at an amount not to exceed two (2) times the annual accrual rate. FEA employees exceeding the limit shall be given a reasonable period of time to comply with this provision.

C. Vacation
Vacation leave with pay shall accrue on the following basis:

Years of Service

1 through 3 years employment
Beginning of 4 through 10 years employment
Beginning of 11 through 15 years employment
Beginning of 16 through 20 years employment
f d l
Number of Days' Vacation/Year
10 working days per year
15 working days per year
21 working days per year
22 working days per year
23 working days per year
The maximum vacation hours that may be accrued are 2.0 times the employee's current annual accrual rate.

During the first six months (6) of employment no vacation may be taken; upon completion of six months (6) of continuous full time service, vacation accrued during the previous six months period may be taken.

Vacation credit is earned during each anniversary year at the rate indicated above.

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13 Vacation credit is earned on a biweekly basis and expressed in terms of hours available on the biweekly check stub. The vacation balance on the check stub will also include "in‐ lieu" holidays earned.

Vacation Cash‐Out:

FEA represented employees may cash out up to 32 hours of their vacation balance each calendar year; provided, however, that employees exercising their option to cash out must maintain a minimum balance of 80 hours of vacation after the cash out.

Upon separation from the City, employees shall be paid for any unused vacation credit.

D. Compensatory Time Off/Overtime/ Fixed, Flexiand Alternative Schedules Employees will be eligible for overtime for all hours worked over eight in a day, or forty in a workweek; provided, however, that employees on approved flex time schedules (including 9/80, 4/10 or other scheduled shifts) will not be eligible for overtime unless they work in excess of forty (40) hours in a designated workweek.

Entitlement to overtime at a 1.5x factor shall be based on hours actually worked.

Holidays paid but not worked shall be considered as time worked for purposes of calculating overtime within the same work week. When an employee has not worked forty hours in a workweek, overtime will be compensated at 1.0x factor.

At the discretion of the City, FEA agrees that overtime compensation may be paid as compensatory time off (CTO) or in pay, at the rate of 1 1/2 1.5x hours per each hour of overtime actually worked. Employees desiring to use accrued CTO must request use of CTO as far as reasonably possible before the date time off is requested.

All employees covered by this MOU will be able to accrue up to 100 hours of comp time.

Employees with one (1) or more year of service in the City of Fairfield may cash out up to 25% of their existing CTO balances in the months of May and November.

Fixed Schedule: Employees assigned to a fixed work schedule shall have specified starting times and ending times to their work shifts. These employees shall have a fixed number of hours per shift, though they may not have the same starting and ending times every day. Hours worked in excess of the scheduled shift, where the regular shift is not less than eight hours shall be paid in salary or compensatory time off at a time‐and‐one‐half rate.

Flexible Schedule: Employees that agree to work a flexible schedule will not have a fixed daily schedule. Instead, they shall have start and end times that are mutually agreed to prior to the start of each pay period. If an employee assigned to a flexible schedule works more than forty hours in a week, they shall receive overtime pay either in salary or compensatory time off at a rate of time‐and‐one‐half.

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14 Alternative Schedule: The City agrees to consider a request made by an employee or a majority of FEA represented employees in a department or major division of a department to change to an alternative work schedule, such as 9/80 or 4/10. Where such accommodations can be made, requests may be granted by the department head. At such time that the department head decides that the schedule does not meet service needs, the employees shall be reassigned to their original schedule.

Except in emergencies or by mutual agreement, employees will be given at least two (2) weeks' notice.

Shift Extension: Hours worked as an extension of a scheduled work shift or as an additional shift or on a City‐observed holiday will be paid at the overtime rate 1.5% factor, calculated to the closest quarter of an hour.

E. Sick Leave

1. Accrual and Use:

Employees shall receive twelve (12) working days of sick leave with pay for each full year, accrued biweekly. Employees are eligible to use sick leave as it is accrued. There shall be no limit on the amount of accumulated sick leave. Sick leave shall be allowed and used solely for cases of actual person sickness or disability, medical or dental treatment, or as authorized for other necessary health reasons and may be used by the employee for attendance upon a member of his/her immediate family who is seriously ill and requires care and attention by the employee, or for medical/dental appointments.

For purposes of this section immediate family is defined as mother, father, step‐mother, stepfather, mother‐in‐law, father‐in‐law, spouse, domestic partner, son, daughter, brother, sister, foster parent, foster child, step child and child for whom the employee is the legal guardian, grandchild, or grandparents. Employees are not required to divulge their illness to their supervisor; however, the employee may be required to provide supporting information or documentation pursuant to the City's sick leave policy. The supervisor does have the authority to ask if the employee is contagious, and if so, direct the employee to remain at home until the employees physician has cleared them to return to work.

Departments have the ability to develop and implement sick leave call‐in procedures, which coincide with business necessity.

2. Separation Payoff
Upon resignation, the employee may be paid twenty‐five (25) percent of unused sick leave earned during the last calendar year. If an employee dies while in City service, his/her beneficiary shall be entitled to the Packet Page 174 of 338Attachment 2 Page 18 of 47

15 same. Employees discharged from City service shall not be eligible for benefits as outlined in this paragraph.

3. Compensation of Unused Accumulated Sick Leave
Compensation of unused accumulated sick leave upon resignation or termination will be made only after fifteen (15) years continuous service.

Computation would begin after fifteen (15) years at a base rate of 45% (forty‐five percent) and increase 3% each complete year thereafter until a maximum of seventy‐five (75) percent is reached.

4. If an employee dies after completing five (5) full years of employment, his/her beneficiary shall be entitled to reimbursement for fifty (50) percent of accumulated unused sick leave after the calculation of the annual unused sick leave buy back. This amount is to be paid at the earliest date possible to the beneficiary.

5. If the employee dies due to a duty‐related injury, his/her beneficiary shall been entitled to reimbursement of one‐hundred (100) percent of accumulated unused sick leave.

F. Bereavement Leave
Department Heads may grant their employees up to a maximum of five (5) days of bereavement leave in the event of a death or serious traumatic injury or illness in the employee's immediate family. The City Manager may grant up to a total of ten (10) days of bereavement leave. Immediate family is defined as mother, father, step‐ mother, step‐father, mother‐in‐law, father‐in‐law, spouse, domestic partner, son, daughter, brother, sister, foster parent, foster child, step child and child for whom the employee is the legal guardian, grandchild, or grandparents. Exceptions will be considered by the City Manager. Additionally, bereavement leave will not be deducted from sick leave and does not accrue to any employee as vested leave.

A "serious traumatic injury or illness" is defined as a sudden and unexpected event, which requires prompt and immediate attention from the employee without delay. It may also include attending to the need of an immediate family member who is expected to die in the immediate future. Bereavement leave shall be taken immediately in conjunction with the event of death or serious traumatic injury or illness.

G. Union Business Time
The City and FEA agree that the number of FEA members who can participate in negotiations is greater than two (2), as referenced in Resolution No. 2001‐185. The number of FEA members will be agreed upon in advance of commencing bargaining between the Director of Human Resources or designee and FEA. In no event, will the number of FEA members be greater than five (5) employee members, or as mutually agreed upon between the Director of Human Resources Packet Page 175 of 338Attachment 2 Page 19 of 47

16 or designee and FEA. Employees shall be responsible for reporting back to work promptly after the conclusion of any formal meet and confer sessions.

The City may grant requests for paid time for members, including but not limited to the FEA Chapter President, to attend training and union business during members' normally assigned work hours, such as, FEA Board meetings and annual FEA Board training sessions and any other valid Union business not expressly listed here.

Requests will be made by the FEA President (or designee) to the Director of Human Resources or designee. The Director of Human Resources or designee shall base the decision on the operational needs of the City. On a case‐by‐case basis, the City may provide release time to attend union functions other than board meetings and board training sessions. The employee and an FEA officer shall certify the employees' attendance at the meeting(s) in question for the approved time. FEA shall be permitted to hold a maximum of one (1) general membership meeting annually on City time and City property. Such meetings shall be no longer than one (1) hour in duration. Any additional meetings are subject to approval by the Director of Human Resources.

The City will allow FEA access to work locations and use of City facilities in accordance with Resolution No. 2001‐185. The City shall waive rental and set up fees for FEA membership meetings.

ARTICLE 8. HEALTH/LIFE INSURANCE/OTHER BENEFITS
A. Medical/Dental
Full‐time employees are eligible for health and dental coverage beginning the first day of the first month after date of hire.

Effective in the first full pay period after City Council approval, the City will increase its contribution to medical and dental benefits to 95 percent of the 2017 increase in premium for the $35 Kaiser copay plan and the Cigna Dental HMO plan. This 95 percent/5 percent sharing between the City and the employee for increases in premium to medical and dental will continue to be based on this methodology for the term of this Agreement. 2018, 2019, and 2020 plan years.

If, during the term of the Agreement, Kaiser no longer offers the medical plan described and/or the Cigna HMO is no longer offered, the City will adjust its medical/dental plan contribution for employees to the Kaiser plan with the lowest premium at the applicable rate, and the Dental Health Maintenance Organization (DHMO) plan with the lowest premium at the applicable rate.

The City will maintain the financial contribution toward medical benefits upon the expiration of the contract until replaced by a successor agreement. Financial contribution is defined as the dollar amount of the City contribution as of July 2016.

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17 Employees providing proof of other coverage may drop health/dental coverage and receive taxable income, of $518 per month. Employees electing dental only receive $518/month, less the cost of the premium for the dental plan in which they have enrolled. Employees electing medical only do not receive any payments.

The City will advise the bargaining unit of healthcare premium renewals and will schedule a meeting with the City's broker of record to allow units to ask questions about the rates and plans.

B. Vision
The City will pay the premium for vision care coverage only under the Kaiser Plan or Health Net, unless negotiated otherwise by the City's insurance broker. For employees not covered by Kaiser (Health Net), the City will reimburse up to a maximum total of $300 per calendar year for the employee and his/her immediate family for eye exam and prescription glasses/contacts. Receipts are required. Amounts not used in any year cannot be carried forward to future years. The vision reimbursement applies only to medical plans that do not have a vision benefit rider. Employees not enrolled in a medical plan are not eligible for vision reimbursement.

The Benefits Committee will consider insured vision care plans during benefit renewal review. If FEA wishes to change to an insured vision plan, the reimbursement plan and vision riders shall be discontinued. If the vision riders cannot be dropped from the health plans, employees shall pay the cost of the vision rider. An insured vision plan shall not be implemented, if the cost exceeds the cost of the current reimbursement program and vision riders, unless employees agree to pay the difference. If there is a savings, it shall be applied to the City contribution amount for medical and dental benefits.

C. Life Insurance
For basic life insurance, employees covered by this MOU will be eligible the first day of the first month after date of hire. The City shall provide $50,000 per represented employee of group term life insurance.

For supplemental life insurance, employees covered by this MOU will be able to purchase coverage equal to six times their annual salary or $500,000 whichever is greater. Health questionnaires are required for the purchase of the Supplemental Life Insurance.

D. Deferred Compensation
During the term of this Agreement, the City shall continue to contribute $64.00$75/month plus 0.5% 1.0% of salary per employee towards a City‐offered deferred savings account selected by the employee. Effective the first pay period in Packet Page 177 of 338Attachment 2 Page 21 of 47

18 March 2016 the City shall increase its contribution by .5% for a total of 1%. Employee contribution is optional.

E. Retiree Medical
The decision by the employee to participate or not in the Retiree Medical Benefit Plan is irrevocable.

1. The City has established the ICMA Vantage Care Retiree Medical Expense Program. The Retiree Medical Expense Program has the following attributes: tax‐ free treatment of health benefits, tax‐deferred treatment of earnings and payments, ability to charge any health premiums and unreimbursed health costs (not just City health plans), assets remaining after employee's death go to spouse/dependents.

2. 3. Effective the first full pay period in January 2009, the City shall contribute $50.00 per month per employee toward this program.

4. 5. FEA may change the threshold number of hours of sick leave a) upon implementation of the program, and b) in future years by notifying the Human Resources Department by December 1.

6.1. On an annual basis, for hours accrued above 500, employees must elect to receive a distribution of sick leave hours in cash or make a contribution to a qualifying deferred compensation account or a Retiree Health Savings account (RHS), determined by employee.

If employees elect to receive cash for their excess hours, they will receive 50% of the value of those hours at their corresponding hourly base rate of
pay. If employees elect to contribute excess hours to a qualifying deferred
compensation or RHS account, they will receive 85% of the value of those
h hours at their corresponding hourly base rate of pay.

7. Notwithstanding any other provision of the MOU, an employee shall receive an "early distribution" on the compensation of unused accumulated sick leave to which the employee is entitled upon separation pursuant to Section 7.E., by multiplying the hours over the amounts shown in the schedule below by the pay rate then in effect. Such amount shall be contributed by the City to the Retiree Medical Expense Program established pursuant to Section 16.A. as of the first regular paycheck in December:

8. Years of Service Credit Sick Leave Hours Balance Formatted: Font: (Default) +Body (Calibri), 12 pt, Expanded by 0.2 pt
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1.19"
Packet Page 178 of 338Attachment 2 Page 22 of 47

19 9. Up to 11 years 960 hours

10. Over 11 years & under 15 years 800 hours

11. 15 years and over 640 hours

12. 13. "Years of service credit" mean years of continuous full‐time employment with the City of Fairfield. In future years, the FEA may change the sick leave hour balance amounts by notifying the Human Resources Department by December 1, provided that the Sick Leave Hours Balance for 15 years and over be no less than 640 hours, the Sick Leave Hours Balance for over 11 years and under 15 years be no less than 800 hours, and the Sick Leave Hours Balance for up to 11 years be no less than 960 hours.

14. 15. At the time the employee's sick leave separation payoff is computed pursuant to Section.7.E., the early distribution hours previously advanced shall be added to the sick leave hours remaining at separation, and the sum shall be multiplied by the sick leave percentage credit computed pursuant to Section.7.E. to determine the eligible sick leave hours to be paid to the employee. The "early distribution" hours previously advanced shall be subtracted from the eligible sick leave hours and (a) if the difference is positive, then the hours advanced are less than the amount to which the employee is entitled, and the dollar value of these hours based on the pay rate at separation shall be transferred to the Retiree Medical Expense Program from the employee's sick leave balance at separation, or (b) if the difference is negative, then the hours advanced are more than the amount to which the employee is entitled, and it is agreed that to compensate for this overpayment that the dollar value of these hours based on the pay rate at separation shall first be subtracted from any leave payoff to which the employee would be other wise entitled (only vacation hours earned on or after implementation of this early distribution provision will be subject to such offsets. (The vacation policy for participants will be altered to permit the vacation offset.)

2. Sick Leave Cash Out upon Retirement
EEmployees who retire from City service have the following options for their

sick leave balance upon retirement:

A. Employees may elect to receive cash for 40% of their current sick leave balance. The remaining 40% of their bank will be credited to their CalPERS pension account for service credit.

B. Employees may elect to receive 75% of their sick leave balance in CalPERS service credit and receive the remaining 25% in cash.

C. Retiring employees who have reached maximum service credit will be eligible to receive 75% of their sick leave balance in cash.

Packet Page 179 of 338Attachment 2 Page 23 of 47

20 3. Sick Leave Cash Out upon Separation
Employees who separate from City service for any reason other than retirement shall receive 50% of their sick leave balance upon separation in cash.

4. Sick Leave Cash out with Death
If any employee dies after completing one (1) full year of employment, his beneficiary shall be entitled to reimbursement for 50% of accumulated unused sick leave.

5. Sick Leave Cash Out with Duties Related Death
If an employee dies due to a duty‐related death, his beneficiary shall be entitled to reimbursement for 100% of accumulated unused sick leave.

During the term of the Memorandum of Understanding, the City shall continue the contribution of $40.00 per month toward health insurance costs of retired City employees from FEA classifications who retired prior to July 1, 1990 with 20 years of City service.

6. For employees who elect to participate in the Retiree Medical Benefit Plan, all of the accumulated sick leave credit (see Section 7.E.) will remain with the City to pay health and dental premiums for the retiree and dependents.

a. In the event the retired employee dies the spouse shall have 60 days to elect to continue coverage. The decision of the spouse to terminate coverage is irrevocable.

b. In the event of a death of a retired employee's surviving spouse, any dependent who is participating in the city plan at the time of death of the retired employee's surviving spouse, may continue on the City health insurance plan at his/her own cost under COBRA regulations only, subject to plan restrictions and conditions.

c. Upon exhaustion of the sick leave credit account, the retiree and/or surviving spouse may continue health and dental coverage by paying the premiums directly to the City.

d. Retirees who do not qualify for the retiree medical benefit plan may continue health and dental coverage by paying the premiums directly to the City.

e. For all retirees, once health and dental coverage is terminated, it cannot be later reinstated.

Packet Page 180 of 338Attachment 2 Page 24 of 47

21 F. Short and Long‐Term Disability

1. Short‐Term Disability Insurance
: The City administers the self‐funded Short‐Term Disability (STD) plan. The STD benefit schedule shall match the State Disability Insurance (SDI) schedule. The benefit commences after a 7‐day waiting period, or immediately, if hospitalized. Coverage is for non‐industrial injuries for a maximum of 180 days. An employee is eligible the first of the month after three (3) months' continuous employment. The employee will pay the monthly premium, which is currently $6, and may be adjusted annually based on an actuarial study.

2. Long‐Term Disability
: Employees will be eligible the first day of the first month after date of hire.

There will be a 180‐day waiting period after the date of the injury or illness causing the disability before employees are eligible for benefits. The maximum benefit will be equal to 60% of salary, subject to the benefit maximum. The City reserves the right to change insurers at its sole discretion.

ARTICLE 9. UNIFORM ALLOWANCE/BOOT REIMBURSEMENT

A. Uniforms
The City will provide uniforms, shirts or coveralls to Public Works field crews. Other employees may be provided shirts or coveralls at the City's discretion. Cleaning or laundering of the uniforms or coveralls will be the responsibility of the employee. D Departmental procedures regarding standards for upkeep and presentability, damage at work, replacement, and so forth, will govern uniform use.

Represented full time employees with a uniform allowance shall have that uniform allowance reported to PERS as part of salary. Classifications and amounts paid annually are as follows:

Annual Amount
 Code Enforcement Officer   $875
 Community Service Officer   $875
 Dispatcher I/II       $875
 Lead Dispatcher      $875
 Park Ranger       $875
 Crime Prevention Specialist   $875
 Fire Inspector I/II/III      $425
 Fire Prevention Specialist   $424
 Fire Department Clerical (includes Office Specialist,  $325 Office Assistant classifications,
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22 Administrative Technician I/II working full‐time in
the Fire Department $325

Subject to the discretion of the Department Head or designee, employees receiving a uniform allowance shall be required to wear their uniform while at work.

Payment for the uniform allowance will be made in two equal payments, which shall be issued the first pay date in June and the first pay date in December to each affected employee who has completed six (6) months of continuous service in an eligible assignment prior to the payment date. For those who have less than six (6) months of continuous service prior to the date of issuance, the allowance shall be pro‐rated.

B. Boot Reimbursement
For employees required to wear boots, the City shall reimburse employees up to $150 $250 annually, effective January 2010, this reimbursement will increase to $175 annually, provided the boots meet the following requirements: oil resistant soles, leather uppers, and ankle height or above. Receipts are required.

Meter Readers will also receive a boot/shoe reimbursement of $150 annually, effective January 2010, this reimbursement will increase to $175 annually.

Reimbursements will be paid by a separate check and are not subject to payroll taxes.

C. Tools and Tool Allowance
The City will pay for reasonable replacement or repair of personal tools damaged at the work place in the normal course of business where such damage is not covered by tool warranties.

Eligible employees will receive an annual tool allowance of $400, on the first pay date in June. Only those employees in the following classifications shall be entitled to such an allowance:

 Equipment Mechanic I Equipment Mechanic II Senior Equipment Mechanic
 Equipment Service Worker I
 Equipment Service Worker II
 Fire Equipment Mechanic II

D. Prescription Safety Glasses
For employees required to wear safety glasses, the City shall reimburse employees up to $300 every two years for prescription safety glasses. Receipts are required.

Reimbursements will be paid by separate check and are not subject to payroll taxes.

Packet Page 182 of 338Attachment 2 Page 26 of 47

23 This provision will take effect on January 1, 2012.

ARTICLE 10. TUITION REIMBURSEMENT
Effective January 2009, Aannual tuition reimbursement per calendar year shall be $4,000$6,000. The City will provide a
tuition and books reimbursement program for educational activities which are approved in advance by the Department Head, subject to reimbursement guidelines established by the City's Director of Human Resources.

ARTICLE 11. CERTIFICATION/LICENSE FEE
Employees who are required by the City as a condition of employment or continued employment to obtain state certification or licensing in the field in which they are employed by the City shall be reimbursed by the City for the actual cost of such certificate or license.

ARTICLE 12. RETIREMENT/PERS

A. PERS Benefits
The City's contract with the Public Employees' Retirement System (PERS) shall provide for the following benefits:
 2.7% @ 55 retirement plan (21354.5)

 Death benefits — Basic Level (21532)

 1959 survivor's benefit (Level IV) (21574)

 Continuation of Pre‐Retirement Death Benefits After Remarriage of Survivor (21551)
Industrial Disability Retirement for Miscellaneous Members (21151) 
 PERS unused sick leave credit option (20965)

 Single highest year coverage (20042)

 Military service credit as public service (21024)

 Employee Sharing Cost of Additional Benefits (20516)
Packet Page 183 of 338Attachment 2 Page 27 of 47

24 Effective July 1, 2012, the City shall adopt a two tier retirement system which shall apply to all employees hired after the effective date and subject to PERL. The benefits of the second tier are as follows:
 2.5% @ 55 retirement plan (21354.5)

 Death benefits — Basic Level (21532)

 1959 survivor's benefit (Level IV) (21574)

 Continuation of Pre‐Retirement Death Benefits After Remarriage of Survivor (21551)

 Industrial Disability Retirement for Miscellaneous Members (21151) 
 PERS unused sick leave credit option (20965)

 Three yearThree‐year average (20042)

 Military service credit as public service (21024)

 Employee Sharing Cost of Additional Benefits (20516)
Effective January 1, 2013 employees who are hired and are for purposes of PERS considered new employees as defined by PERL are eligible for 2%@62 with a three year average for final compensation. Employees in this group will pay 50% of the normal cost as determined by PERS.

A.B. Effective the first full pay period in 2017 after Council approval, employees will pick up an additional .75 percent of PERS cost for a total of 9.75 percent.

Effective the first full pay period of July 2018, employees will pick up an additional .75% of PERS cost for a total of 10.5 percent.

B.C. In 2017, Employer Paid Member Contribution (EPMC) of .75 percent is reported to PERS as salary for PERS retirement purposes only.

D. Employee contributions will be paid pre‐tax under IRS section 414 (h) (2).

E. Social Security

1. In the event the City and its employees are required to participate in the Federal Social Security program, the contribution designated by law to be the responsibility of the employee shall be paid in full by the employee and the City shall not be obligated Packet Page 184 of 338Attachment 2 Page 28 of 47

25 to pay or "pick‐up" any portion thereof. If the City is forced to join Social Security, any new employees thereafter will be placed in a 2.7% at 55 PERS or other retirement plan in effect that coordinates benefits with Social Security. The City agrees to discuss with FEA the coordinated retirement plan at least thirty (30) days prior to implementation.

F. Medicare
All employees hired on or after April 1, 1986 shall contribute a portion of their gross salary (1.45%) for Medicare coverage as determined by federal regulations.

ARTICLE 13. LIGHT DUTY
Light duty may be provided for employees who are unable to work due to injury or illness from either industrial or non‐industrial causation. Further, workers' compensation law and disability plans provide that an employee is not entitled to temporary disability benefits if suitable light duty work is available. The basic principles are as follows:

 The employee is temporarily not able to resume full duty, but is capable of performing some work duties.

 The employer may develop a light duty work assignment commensurate with the employee's temporary work restriction.

 If the employer is unable to offer light duty work, the employee is entitled to continued temporary disability benefits until the employee is able to resume normal duties, or is permanent and stationary, whichever is earlier.

 If the employee declines suitable light duty work, the employee is no longer entitled to temporary disability benefits.

It is the City's policy to temporarily provide light or modified duty work assignments, when possible, and in accordance with the MOU's, to all injured employees until they can return to full work status. However, the City is under no obligation to provide light or modified duty if there is none available.

A physician may return an injured employee to duty with work restrictions prior to releasing the employee to his/her regular full work duties. It is important that the treating physician understand the physical job demands of the injured worker in order to prescribe the proper work restrictions. The City must communicate to the treating physician the essential Formatted: Font: (Default) +Body (Calibri), 12 pt
Packet Page 185 of 338Attachment 2 Page 29 of 47

26 functions of the job classification is that necessary work restrictions may be determined. Risk Management consults with the physicians to provide this information on an as needed basis.

A "light duty" assignment is made when an employee's work restriction (s) can be temporarily accommodated within his/her normal duties. A "modified duty" assignment is made when an employee's work restriction(s) is considered to be permanent and their position duties are accommodated to allow for the work restriction.

Under this policy, Supervisors have the added responsibility to ensure that any and all work restrictions specified by the treating physician are rigidly adhered to and enforced during the period of light or modified duty assignment, and employees are required to adhere to the work restrictions. While on light or modified duty, employees will receive their regular rate of pay in most circumstances.

Light and/or modified duty assignments shall be considered flexible and adaptable to meeting the particular needs of both the disabled employee and the department. This may include assignments of less than eight (8) hours a day, frequent breaks, the use of modified work stations, and so forth. Each situation will be evaluated on an as‐needed basis. The assignment of a light or modified duty position shall not be considered a permanent job placement.

If an employee is released by his or her treating physician to light or modified duty, Risk Management follows up with the department to determine whether the employee can be returned to work in a light duty mode. If the department does not have a light or modified duty assignment for the employee, the employee receives temporary disability payments for industrial injury or illness, and may be eligible for short term disability benefits for non‐ industrial injury. The City may assign employees to light duty work in other departments or divisions provided that the work duties are appropriate for the skills of the employee and the work restrictions.

ARTICLE 14. GRIEVANCE PROCEDURE
A. Definition of Grievance
A grievance is defined as an allegation by the Union or an individual covered by the Memorandum of Understanding (MOU) that the City has violated: (a) an express term of the MOU; (b) a written personnel rule or regulation in the City within the scope of representation of the MMBA; or (c) an established City policy governing personnel practices or working conditions within the scope of representation of the MMBA.

B. Purpose
The purpose of this grievance procedure is to ensure an orderly method whereby employee complaints are considered and resolved rapidly and fairly.

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27 C. Exclusions from Grievance Procedure
Disciplinary actions (including without limitation dismissals, reprimands, suspensions, demotions or disputes concerning pay increases performance appraisals and layoffs are not subject to the grievance procedure.

D. Steps in the Grievance Procedure
It is the intent of the parties to deal with and settle grievances informally, promptly and fairly, and at the nearest practical organizational level.

Step 1: Informal Discussion
In any instance of grievance, the employee or employees concerned shall first make efforts to resolve such grievance informally with their immediate supervisor, manager, or person of authority to resolve the issue, within twenty (20) calendar days following the occurrence of the events on which the grievance is based or when the Union became aware of the events.

Step 2: Written Grievance
If a mutually satisfactory solution of a grievance is not reached at step 1, then the aggrieved party or Union shall submit a formal written grievance to the Human Resources Department within fourteen (14) calendar days of the informal discussion. The Department Head or other relevant City representatives shall meet with the employee or Union to ascertain the facts and attempt to resolve the grievance. The City shall have fourteen (14) calendar days in which to hold such meeting and officially respond to the grievance.

Step 3: Mediation
If the grievant is not satisfied with the City's response, the grievant shall have fourteen (14) calendar days to submit a written request for mediation. Such request shall be submitted to the Human Resources. The parties shall request from State Mediation and Conciliation Service a mediator they have jointly agreed upon. The Mediator's role is to assist the parties in reaching a mutually acceptable voluntary resolution to the grievance.

In the event either party does not believe that a settlement can be reached, Step 3 of the grievance procedure may be waived by mutual agreement of the parties and the matter shall be referred directly to an impartial arbitrator in accordance with Step 4 of this Section.

Step 4: Arbitration
If the grievance is not resolved at Step 3, the Union may require that the grievance be referred to an impartial arbitrator who shall be designated by Packet Page 187 of 338Attachment 2 Page 31 of 47

28 mutual agreement between the Union and the City Manager or his her designee.

The request for arbitration shall be made in writing within fourteen (14) calendar days following the date of mediation.

In the event the parties are unable to agree on an arbitrator, the parties shall solicit from the State of California Mediation and Conciliation Service a list of seven (7) neutral arbitrators. After the receipt of the list, the parties shall alternatively strike arbitrator's names from the list until one (1) arbitrator's name remains. Coin toss will choose the party to strike the first name.

The fees and expenses of the arbitrator and of a Court Reporter shall be shared equally by the Union and the City. Each party, however, shall bear the cost of its own presentation, including preparation and post hearing briefs, if any.

The Arbitrator shall determine relevancy, weight and credibility of testimony and evidence, and shall base his/her findings and recommendations on the preponderance of the evidence. The Arbitrator shall render in writing his/her recommendations as soon after the conclusion of the arbitration as possible.

The Arbitrator's recommendations will be advisory and shall be submitted to parties. The City Manager shall consider the recommendation and render a final decision.

E. General Provisions

1. Requirements for Written Grievances
: Grievances must contain the following information in order to be considered: (a) the grievant' s name and classification; (b) a list of those specific policies or MOU provisions alleged to have been violated; (c) a statement of the facts and circumstances supporting the grievance; (d) a description of all relief requested; and, (e) the address where the grievant wishes grievance responses to be postmarked or emailed.

2. 2. Receipt of Grievance
: Grievances may be hand delivered, sent via email or sent certified mail via US Post. If the grievance is transmitted by electronic mail the receiving party shall send a confirmation email upon receipt.

3. 3. Time Limitations
: If a grievant fails to advance the grievance to the next step, as specified in this procedure, the grievance shall be considered withdrawn. If the City fails to respond within the time specified in this procedure, the grievance shall be considered advanced to the next step. Notwithstanding any Formatted: Indent: Left: 1.25", First line: 0", Tab stops:

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Packet Page 188 of 338Attachment 2 Page 32 of 47

29 provision in this section, any time limit or stage of procedure specified in this section may be waived or modified upon the written consent of all parties involved.

4. 4. No Work Disruption
: During the determination of a grievance herein, there shall be no interruption of scheduled work relating to the grievance. Whenever reasonably feasible, grievances shall be handled during the regularly scheduled working day hours of the parties involved, and at a mutually convenient time for all affected persons.

5. Other Rights
: This grievance procedure is without prejudice to any existing independent legal rights of FEA regarding contract enforcement.

6. No Retaliation
: No party shall retaliate against any grievant, party or witness for exercising rights under this grievance procedure.

ARTICLE 15. WEINGARTEN RIGHTS
When a City employee is subjected to an investigative interview, and the employee reasonably believes that the interview could lead to disciplinary action, the employee is entitled to a union representative.

ARTICLE 16. DISCIPLINE PROCEDURE
As used in this section, working day shall refer to the working day of the party involved (employee, supervisor, Division Head, Department Head, City Manager and/or their designees), depending upon whose response or action is pending. Supervisors will handle disciplinary matters in a confidential, professional and respectful manner. Proposed discipline shall be for just cause. Probationary employees may not appeal terminations.

A. Written reprimands may be appealed to the Department Head. The Department Head shall schedule a meeting with the employee and his/her Union representative upon request, but no later than fourteen (14) working days following the issuance of the written reprimand. The Department Head's response to the appeal shall be final. When issuing a written reprimand to an employee, copies will also be provided to the Department Head and the Director of Human Resources. The employee will receive two (2) copies of the reprimand, one for the employee and one for FEA. It is the employee's responsibility to provide a copy to FEA, if the employee wishes to do so. An employee who receives a written reprimand will have the option to submit a response to the Human Resources Department (and the Department Head) within 30 calendar days of receiving the written reprimand. The employee's response will be placed in his or her official Personnel File.

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1.31"
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30 B. For suspensions, demotions or terminations, steps 1‐6 shall be followed:
 Investigatory Process
The immediate supervisor may shall meet with an employee to discuss proposed discipline actions after notifying the employee in writing that such a meeting is being held for the purposes of ascertaining whether disciplinary action is appropriate. The following process shall be used should the supervisor move forward with an Intent to Discipline.

 Disciplinary Process

1. 1. Throughout the disciplinary process, the employee shall be provided copies of
all documents that are provided to all appellate bodies and used in justification of the disciplinary action being recommended. When a Notice of Intent to Discipline is issued to an employee, names of all witnesses to alleged events shall be provided to the employee to whom the discipline is being imposed. After any investigatory meeting the supervisor shall notify the employee of the proposed discipline action by written notice containing the following:

a. A description of the proposed action and its effective dates; b. A clear and concise statement of the reasons for such action, including the acts or omissions on which the disciplinary action is based;

c. A statement advising the employee of the right to respond, either verbally or in writing, to the authority proposing the action prior to its effective date;

d. A statement that a copy of the materials upon which the action is based is attached or available for inspection upon request; and

e. A statement advising the employee of the method and right to appeal and the time within which the appeal must be made.

2. If the employee disagrees with the proposed disciplinary action, he or she shall may, within ten (10) working days of the written notice, request a meeting with the supervisor recommending discipline to attempt to resolve the issue. In lieu of requesting a meeting with the Supervisor, the employee may within the ten (10) working day period, notify the supervisor that the employee desires to respond to the charges at a Skelly Hearing. In such event, the steps set forth in paragraphs 3 and 4 will not apply, and the Department Head will schedule and conduct a Skelly Hearing at which time the employee may present evidence and argument concerning the basis and Packet Page 190 of 338Attachment 2 Page 34 of 47

31 form of the proposed disciplinary action.

3. If the employee does not elect to forego the meeting with the supervisor, the supervisor shall confirm the results of the meeting in a memorandum to the employee. If the employee disagrees with the results, the employee may submit the matter to the employee's second level supervisor, if any, for discussion within ten (10) working days from the date of the memorandum. If the employee has no second level supervisor below the level of Department Head, the employee can appeal to step 5.

4. The second level supervisor shall meet with the employee within ten (10) working days from the date of the appeal. The supervisor shall issue his/her decision in writing within ten (10) working days of the meeting. If the employee disagrees with the supervisor's decision, the employee may appeal the decision to their Department Head within ten (10) working days of the date of the written response from the second level supervisor.

2.3. The Department Head or designee shall meet with the employee for the Skelly Hearing
within ten (10) working days from the date of the appeal.

The Department Head shall issue his/her decision in writing within ten (10) working days of the meeting. At that time, the disciplinary action may be imposed. If the employee disagrees with the decision of the Department Head, then the employee may appeal the disciplinary decision to the City Manager, within ten (10) working days of receiving the Department Head’s decision. The City Manager will appoint a hearing officer who will conduct an administrative hearing concerning the merits of the appeal, subject to the following:

a. The hearing officer will be a neutral party from outside the organization.

b. The fees and expenses of the hearing officer and court reporter shall be borne by both parties. All Other expenses shall be borne by the party incurring them and neither party shall be responsible for the expenses of witnesses called by the other;

c. A party requesting a transcript to the hearing shall bear the cost thereof;

d. The hearing officer shall hold a hearing and make a recommendation to the City Manager to sustain, modify, or reverse the disciplinary decision. A copy of the recommendation will be forwarded to the employee. The City Manager or designee will then issue a final Packet Page 191 of 338Attachment 2 Page 35 of 47

32 decision within ten (10) working days of receiving the recommendation and may, but is not required, to accept the hearing officer's recommendation.

6. This procedure does not constitute a waiver of the employee's right to request a review of the City's decision in a court of law pursuant to Code of Civil Procedure § 1094.5.

C. Time Limitations
If an employee fails to advance the appeal to the next level, as specified in this procedure, the appeal shall be considered withdrawn. If the City fails to respond within the time specified in this procedure, the appeal shall be considered advanced to the next step. Notwithstanding any provision in this section, any time limit or stage of procedure may be waived or modified upon the written consent of the parties

ARTICLE 17. LAYOFF
The City will discuss with SEIU/FEA thirty (30) calendar days in advance of implementation a Furlough, Voluntary Time Off and/or alternate work week schedule (e.g., 9/80 for City Hall) affecting FEA‐represented employees.

In the event of layoffs, the City will use due diligence in carrying out the following items:

 Prior to implementing layoffs of FEA employees, the City shall consider its organizational and fiscal options.

 The City shall attempt to give at least 30 days' notice prior to layoff, andlayoff, and shall not give less than 14 days' notice.

 The City shall meet and confer with FEA concerning only the impacts or effects of layoffs.

 The City shall consult with FEA regarding possibilities to help laid off employees, such as referrals to job placement, retraining and/or outsourcing services.

 The City shall consult with FEA regarding the possibility of extending severance packages to laid off employees.

ARTICLE 18 LAYOFF PROCEDURE

A. Statement of Intent
Whenever, in the judgment of the City Council, due to lack of funds or lack of work, or reorganization, it becomes necessary to abolish any position or employment, Packet Page 192 of 338Attachment 2 Page 36 of 47

33 the employee holding such position or employment may be laid off or demoted or the position may be reclassified. Such layoffs shall not be considered disciplinary actions for appeal purposes.

B. Notification
Employees to be laid off or demoted shall be given, at least fourteen (14) calendar days prior notice.

C. Employment Status and Order of Layoffs
Layoffs shall be made according to classification and employment status within a City department, as described in this policy. In each class of position, employees shall be laid off according to employment status in the following order: temporary, probationary and permanent. Employees serving a probationary period due to promotion shall be considered permanent status for purposes of layoff.

The layoff order for affected employees shall be determined by seniority.

D. Vacancy and Demotion
Except as otherwise provided, whenever there is a reduction in the work force, the following process shall be used in determining the position that the employee who is subject to layoff shall occupy:

1. A vacancy within the same classification or lateral classification once held by the employee within the same Department; if that is not available

2. A City‐wide vacancy within the same classification or lateral classification once held by the employee; if that is not available

3. A vacancy in a lower level position which the employee once held within the same Department, or if no such position exists, then within the City.

E. Displacement of Less Senior Employees
In the event there are no vacancies as described in Section D, a permanent employee may have bumping or retreat rights within their current Department.

Employees may displace only those employees who have less seniority in the same classification within their current Department and bumping shall not occur across Departments.

In order to retreat to a former or lower class, an employee must request displacement action in writing to the Human Resources Department within five (5) working days of receipt of notice of layoff. The Human Resources Department shall provide a form for such request. Employees retreating to a lower or similar class shall be placed at the Packet Page 193 of 338Attachment 2 Page 37 of 47

34 salary step representing the least loss of pay. In no case shall the salary be increased above that received in the class from which the employee was laid off. Employees retreating to a lower or similar class shall serve a probationary period in the new class unless they have previously successfully completed a probationary period in the class.

F. Seniority
In order to retreat to a former or lower class, an employee must request displacement action in writing to the Human Resources Department within five (5) working days of receipt of notice of layoff. The Administrative Services Department shall provide a form for such request. Employees retreating to a lower or similar class shall be placed at the salary step representing the least loss of pay. In no case shall the salary be increased above that received in the class from which the employee was laid off. Employees retreating to a lower or similar class shall serve a probationary period in the new class unless they have previously successfully completed a probationary period in the class.

Seniority shall be determined by the most recent date of hire into any regular full‐time or pro‐rata bargaining unit position. In cases when an employee has a break in service for less than six months, their original hire date shall be used for the purposes of seniority.

In the event that two (2) or more employees have the same seniority date, the employee with the greater length of service in their current classification shall have greater seniority.

As soon as practical following the announcements of layoffs, the City shall provide the Union with a current Seniority list for all affected classifications.

G. Re‐employment List
The names of persons laid off or demoted in accordance with these rules shall be entered upon a re‐employment list. Lists from different departments or at different times for the same class of position shall be combined into a single list. Such list shall be used by the City Manager when a vacancy arises in the same or lower class of position before certification is made from eligible list. A copy of the re‐employment list shall be provided to the Union within thirty (30) days of the layoff event.

H. Duration of Re‐employment List
Names of persons laid off shall be carried on a reemployment list for two (2) years, except that persons appointed to permanent positions of the same level as that from which he/she was laid off, shall upon such appointments, be dropped from the list.

Persons on a re‐employment list shall have one opportunity to refuse reemployment before they are dropped from the list. Persons re‐employed in a lower class shall be continued on the list for the higher position for two (2) years. All persons re‐ employed after one (1) year who originally completed their initial probationary period, shall be required to serve a six month probation period. Employees who are Packet Page 194 of 338Attachment 2 Page 38 of 47

35 re‐employed and never completed an initial twelve (12) month probationary period will be required to do so upon re‐employment. Persons re‐employed from this list shall have their seniority reinstated less the duration of their layoff.

ARTICLE 19. CROSS TRAINING

A. Employees may apply for cross‐training in another department or division provided that their department head, the receiving department head and the City Manager's office approve.

B. Employees who wish to cross‐train must complete the required application forms.

C. Participants in the cross‐training program shall not receive an increase in compensation.

ARTICLE 20. TRANSFER PROCEDURE
Employees who wish to be considered for a transfer to the same job classification in another division or department should send a completed transfer form to the Human Resources Department indicating their desire to transfer. The appointing authority (Department Head) and Director of Human Resources will decide whether to approve the transfer, if a vacancy becomes available. Employees may need to complete an updated job application package. Employees may be interviewed as part of this process. Employees will update their request once annually, in order to be considered for transfer.

The City will continue to recruit both externally and internally for vacancies in classifications represented by FEA. Following budget cutbacks, the City Manager may direct Departments to conduct internal recruitments first prior to recruiting externally.

ARTICLE 21. RECLASSIFICATION PROCEDURE
DEFINITION:

Reclassification is warranted when an employee is working out of class, typically at a higher level. The length of time an employee works out of class before a reclassification can be approved will vary.

PROCESS:

1. Request for reclassification (from employee or from employee's supervisor) is submitted to Department Head. A Department Head may also initiate a request for reclassification.

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36 2. The Department Head will submit a memo along with the reclassification request to Human Resources requesting a review of the reclassification request. A copy of the memorandum will be given to the employee. The memo typically covers the reason for the reclassification, a description of recommended higher classification, when the employee began performing these duties, and whether or not the employee meets the minimum qualifications of the classification.

3. The Human Resources Department will complete an analysis of the request, which may include talking to the employee(s) and supervisor, and performing a desk audit(s). Upon receipt of the completed questionnaire, the Human Resources Department will complete the analysis of the reclassification request within two months.

4. Once the Human Resources Department has completed the review, the Director of Human Resources or other staff prepare a memo to the Director of Human Resources with a summary of the request along with a recommendation. If Human Resources agrees with the reclassification, the recommendation memo lists the justification for the reclassification, the new job classification, the salary step and the effective date. A Personnel Action Form is attached to the memo.

5. The Director of Human Resources reviews the memo. If recommended for approval, the memo is forwarded to the City Manager.

6. The City Manager approves the reclassification recommendation and returns the document to the Human Resources Department.

7. The Human Resources Department notifies the Department Head that the reclass has been approved.

8. If the Human Resources Department does not recommend approval of a reclassification, a memo will be submitted to the Department Head and the employee with an explanation as to why the reclassification request is not being recommended.

ARTICLE 22. MISCELLANEOUS ITEMS

A. FEA Notification
When a person is hired in any of the covered FEA job classifications, the City shall notify the person that FEA is the recognized bargaining representative for the employee's representation unit and give the employee a FEA packet.

The City shall notify FEA no less than two (2) working days in advance of the date and time of the new employee orientation. An FEA representative shall be given Packet Page 196 of 338Attachment 2 Page 40 of 47

37 fifteen (15) minutes to meet with the new hire. The FEA representative shall be an officer or steward of the chapter.

Before sending payroll deduction authorization forms to FEA, the City will print the job title, department and work phone number of the new employee on the form.

B. Payroll Deduction and Pay over
The City shall deduct Union dues or fees and premiums for FEA sponsored insurance programs in conformity with State and City regulations. The City shall within fifteen (15) days' pay to the designated payee all sums deducted.

It is further understood and agreed that Management shall not be required to deduct said dues and other deductions, or remit them to the designated payee, when an employee covered hereunder who has previously filed a written authorization requesting such deductions, requests in writing that Management cancel all or any portion of the deductions previously authorized. The City shall recognize any general dues increase as specified by the designated payee and shall be held harmless for any such pay over as stipulated above.

C. Productivity
Employees covered by this Agreement will cooperate fully with management in programs designed to increase the level of overall productivity of mutual benefit to the taxpayers.

D. Health and Safety
The City agrees to provide a safe and healthful work place by complying with all applicable local, state and federal health and safety laws and regulations. FEA agrees that all employees must also comply with applicable laws and regulations.

E. Retirement Planning
The City shall make financial planning available to employees represented by FEA.

Compliance with ADA and Other Civil Rights Laws: This MOU shall be administered and applied in a manner that complies with provisions of federal, state and local disability and anti‐discrimination statutes. The City reserves the right to administer and interpret the agreement to ensure compliance with such laws. Whenever reasonably possible, the City will advise FEA of any upcoming improvements or alterations to the City's physical plant and grounds made pursuant to the Americans with Disabilities Act or other similar law, and will solicit FEA's input and suggestions regarding the matter. The City will meet and confer, where required by the Meyers‐ Milias‐Brown Act, regarding the impact of any such improvements or alterations on FEA represented employees.

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Packet Page 197 of 338Attachment 2 Page 41 of 47

38 F. Compliance with ADA and Other Civil Rights Laws
This MOU shall be administered and applied in a manner that compiles with provisions of federal, state, ad local disability and anti‐discrimination statutes. The City reserves the right to administer and interpret the agreement to ensure compliance with such laws. Whenever reasonably possible, the City will advise FEA of any upcoming improvements or alterations to the City’s physical plant and grounds made pursuant to the American with Disability Act or other similar law, and will solicit FEA’s input and suggestions regarding the matter. The City will meet and confer, where required by the Meyers‐Millias‐Brown Act, regarding the impact of any such improvements or alternations on FEA represented employees.

ARTICLE 23. REASONABLE SUSPICION DRUG AND ALCOHOL TESTING In addition to employees already covered under the Department of Transportation (DOT) drug and alcohol testing, all FEA employees will participate in reasonable suspicion drug and alcohol testing, following the reasonable suspicion testing procedure in the City of Fairfield Substance Abuse Policy. In the event that two (2) supervisors or managers disagree on reasonable suspicion testing of an employee, every effort will be made to call in a third trained manager or supervisor to determine whether reasonable suspicion testing should be conducted.

ARTICLE 24. SEVERABILITY PROVISION
If any provision of this Agreement is held to be contrary to law by court of competent jurisdiction, such provision will not be deemed valid and subsisting, except to the extent permitted by law, but all other provisions will continue in full force and effect.

ARTICLE 25. CONTRACTING OUT
In the event the City contracts out any work that impacts FEA and its members, the City will provide a 45-day notice to FEA of such contracts that would eliminate FEA‐represented positions and will meet and confer with FEA concerning only the impact or effects, if any, of such contracts on FEA. It is the intent of the City to try to accommodate affected employees, e.g., by attempting negotiations when reasonable to require contractors to hire displaced City employees. However, in no event shall this MOU be construed to hinder or prevent the City from achieving fiscal savings by contracting out.

ARTICLE 26. PRO RATA PART TIME
If the employee is required to work an average of 20 hours or more per week over twelve months, the employee shall receive pro‐rated full‐time benefits and the employee shall be entitled to dues check off and union representation.

ARTICLE 27. UNION SECURITY
Packet Page 198 of 338Attachment 2 Page 42 of 47

39 A. Every employee in the representation unit covered by this Memorandum of Understanding hired after September, 1994, shall, as a condition of employment, become and remain a member in good standing in the union; or pay to the union a monthly fair share service fee not greater than regular monthly dues; or, in the case of an employee who certifies he/she is a member of a bona fide religion, body or sect which has historically held conscientious objection to joining or financially supporting public employee organization, pay a sum monthly equal to service fees to a charitable fund chosen by the employee from the list of Napa‐Solano United Way recipient organizations.

B. B. SEIU shall be solely responsible for providing a legally adequate written notice in full conformance with the requirements of current case law to each new unit employee within thirty (30) days after date of hire informing the employee of the following:

1. the dollar amount of the monthly membership dues;

2. the dollar amount of monthly fair share service fee;

3. the dollar amount of the monthly agency fee (the monthly service feelers expenses not legally chargeable to dissenting employees);

4. the procedures for filling a dissent with FEA from payment of that portion of the monthly service fee representing FEA expenses deemed non‐ chargeable to dissenting employees under current case law;

5. the procedure for challenging FEA's calculation of expenses chargeable to dissenting employees.

C. FEA shall furnish the following to the City no later than 30 days after the hire date of a new unit employee: (1) a signed dues deduction authorization from each unit employee who has elected to become an FEA member; (2) the name of each unit employee who has filed a dissent with FEA from payment of the monthly service fee and who, therefore, is required to pay the agency fee; (3) the name of each unit employee who has filed with FEA a challenge which is pending to FEA's calculation of expenses chargeable under the fair share fee; (4) the name of each employee who has certified that he or she is a member of a bona fide religion, body or sect which has historically held conscientious objection to joining or financially supporting public employee organizations, and the name of the charitable fund to which the employee has chosen to direct a sum equal to the monthly service fee.

D. For all unit employees hired after the final date of ratification, except in Paragraph F below, City shall deduct, based on the information provided by FEA pursuant to Paragraph C, one of the following from the pay of each unit employee:

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Packet Page 199 of 338Attachment 2 Page 43 of 47

40 1. FEA dues from each employee who has a signed dues deduction authorization on file with the Human Resources Department;

2. the monthly service fee from each employee who does not have a signed membership dues deduction authorization on file and has not dissented from payment of the monthly service fee;

3. the fair share fee from each employee who does not have a signed deduction authorization on file and who has either (i) dissented from payment of the monthly service fee or (ii) filed a challenge to the expenses chargeable under the fair share fee; or,

4. an amount equal to the monthly service fee to be directed to a charitable fund from an employee who has certified that he or she is a member of a bona fide religion or sect who holds a conscientious objection to joining or financially supporting an employee organization such as FEA, as set forth in paragraph 1 above.

E. The City shall deduct one of the amounts set forth in Paragraph D(1)‐(4) above from the pay of a newly hired unit employee within 30 days of FEA providing the employee with a notice equivalent to that required by Paragraph B and the City with the information required in Paragraph C.

F. The City shall not make a deduction required by Paragraph D above during any pay period when the unit employee from whose pay the deduction is otherwise required is in an unpaid status or does not have enough earnings to cover the dues or fees.

G. FEA agrees to indemnify, defend, and hold the City harmless from any and all claims, demands, suits, or any other action arising from implementation or application of Paragraphs AF of this Section, provided, however, that no duty to indemnify, defend or hold the City harmless shall be imposed where the basis of the claim, demand or suit arises from the negligence or intentional misconduct of the City or its authorized agents or representatives.

H. All employees hired after the date of final ratification shall either become members of the Union (or exercise the options described in paragraph A and B) and shall remain members in good standing with the FEA. As of the date of final ratification to the M.O.U., some current employees in the representation unit covered by this M.O.U. are members of the Union and some are not. All current employees who are members of the Union shall maintain their membership in good standing with the Union for the full term of this Agreement.

Packet Page 200 of 338Attachment 2 Page 44 of 47

41 Beginning the first full pay period in January 2009, the City will deduct COPE donations from employees who have elected to have such donations withheld from their paycheck. FEA shall be responsible for developing and disseminating the form.

Packet Page 201 of 338Attachment 2 Page 45 of 47

42 SIGNATURE PAGE FOR MEMORANDUM OF UNDERSTANDING
REACHED BETWEEN
THE REPRESENTATIVES OF THE CITY OF FAIRFIELD AND
THE SERVICE EMPLOYEES INTERNATIONAL UNION/FAIRFIELD

EMPLOYEES'

ASSOCIATION

City of Fairfield SEIU Local 1021/FEA

______________________________ ______________________________ Harry T. Price David J. Gassaway Del Mallory
Mayor Interim City Manager SEIU 1021 Area
Director/Chief Negotiator

______________________________ ______________________________ Date Date

______________________________
______________________________
Rick Vaccaro Amy Tudi‐Akaka
Vice‐Mayor Negotiating Team Member

______________________________
______________________________
Pam Bertani Stacey Hofacre
Councilmember Negotiating Team Member

______________________________
______________________________
Catherine Moy Adam Rudolph
Councilmember Negotiating Team Member

______________________________
______________________________
Doriss Panduro Darin Eltringham
Councilmember Negotiating Team Member

______________________________
______________________________
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Formatted: Indent: Left: 1", First line: 0.5"
Packet Page 202 of 338Attachment 2 Page 46 of 47

43 Chuck Timm Teri Luchini
Councilmember Negotiating Team Member

______________________________
______________________________
Scott Tonnesen Marcos Zepeda
Councilmember Negotiating Team Member

David A. White Andrea Zanetti
City Manager SEIU 1021
Field Representative / Chief Negotiator

Date Date

Jack W. Hughes Teri Luchini
Chief Negotiator FEA President

Roger Keener
Negotiating Team Member

Stacy Hofacre
Negotiating Team Member

Rachel Reyes
Negotiating Team Member

Darin Eltringham
Negotiating Team Member

SEIU 1021
John Stead‐Mendez
Executive Director
Field and Programs
Packet Page 203 of 338Attachment 2 Page 47 of 47

Agenda Item No: 18.

AGENDA REPORT
DATE:May 3, 2022
TO:Mayor and City Council
FROM:David Gassaway, Interim City Manager
SUBJECT:Resolution 2022101 of the City Council of the City of Fairfield Adopting a Successor Memorandum of Understanding Between the City and the Fairfield General Management Association
RECOMMENDED ACTION
Adopt resolution.

STATEMENT OF ISSUE
Adopt resolution for the new successor Memorandum of Understanding between the City and Fairfield General Management Association (FGMA) to reflect the amendments made to the agreement as a result of successful bargaining between the parties.

DISCUSSION
Bargaining was postponed for the Memorandum of Understanding (MOU) between the City and FGMA was extended in the summer of 2021. The parties agreed that negotiations would be difficult because of the disruptions caused by the Covid19 pandemic. The parties agreed to extend the expiration date of the MOU from June 30, 2021 to June 30, 2022.

In September of 2021, City and FGMA representatives began negotiating a successor MOU. The parties came to a negotiated settlement for the successor MOU and the members of FGMA have voted to ratify this new agreement. Therefore, staff recommends the City Council adopt the resolution for the new successor MOU with FGMA. This report provides a summary of the amendments made to the successor MOU:
ꞏThe new term of this successor MOU will begin in July 1, 2022 and expire on June 30, 2025. ꞏEffective the first pay period of each fiscal year, the cost of living adjustments agreed to are the following:
o July 2022: 5%
o July 2023: 3%
o July 2024: 5.5%
ꞏEnhancements and clarifications were made to the following contract provisions:
o Bilingual
o Vacation Reciprocity
Packet Page 204 of 338

Agenda Item No: 18.AGENDA REPORTDATE:May 3, 2022 TO:Mayor and City CouncilFROM:David Gassaway, Interim City ManagerSUBJECT:Resolution 2022101 of the City Council of the City of Fairfield Adopting a SuccessorMemorandum of Understanding Between the City and the Fairfield GeneralManagement AssociationRECOMMENDED ACTIONAdopt resolution.STATEMENT OF ISSUEAdopt resolution for the new successor Memorandum of Understanding between the City and FairfieldGeneral Management Association (FGMA) to reflect the amendments made to the agreement as aresult of successful bargaining between the parties.DISCUSSIONBargaining was postponed for the Memorandum of Understanding (MOU) between the City and FGMAwas extended in the summer of 2021. The parties agreed that negotiations would be difficult becauseof the disruptions caused by the Covid19 pandemic. The parties agreed to extend the expiration dateof the MOU from June 30, 2021 to June 30, 2022.In September of 2021, City and FGMA representatives began negotiating a successor MOU. Theparties came to a negotiated settlement for the successor MOU and the members of FGMA have votedto ratify this new agreement. Therefore, staff recommends the City Council adopt the resolution for thenew successor MOU with FGMA. This report provides a summary of the amendments made to thesuccessor MOU:ꞏThe new term of this successor MOU will begin in July 1, 2022 and expire on June 30, 2025.ꞏEffective the first pay period of each fiscal year, the cost of living adjustments agreed to are thefollowing:o July 2022: 5%o July 2023: 3%o July 2024: 5.5% ꞏEnhancements and clarifications were made to the following contract provisions:
o Bilingual
o Vacation Reciprocity
o Emergency Duty Pay
o Holidays (Adding Juneteenth as an Official Holiday)
o Deferred Compensation
The redlined successor MOU is attached to this report.

FINANCIAL IMPACT
The total cost over three years of the amendments made to the successor MOU between the City and FGMA is $5,194,593; $2,665,631 mainly paid from fund 011 (General Fund) and the remaining $2,528,962 mainly paid from Enterprise and Internal Service Funds.

PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
Not applicable
ALTERNATIVE ACTION
The City Council may not approve the new successor MOU between the City and FGMA and request for City staff to negotiate different terms than recommended above.

STAFF CONTACT
Farbod Pirouzmand, Director of Human Resources
(707) 4287397
[email protected]
COORDINATED WITH
City Attorney's Office, City Manager's Office, Finance Department ATTACHMENTS:

Description
Proposed Resolution
Redlined FGMA MOU
REVIEWERS:

Reviewer Action Date
Romie, Patty Approved 4/19/2022 8:12 PM
Pirouzmand, Farbod Approved 4/19/2022 8:30 PM
Pirouzmand, Farbod Approved 4/19/2022 10:24 PM
Alexander, Amber Approved 4/25/2022 1:36 PM
Alexander, Amber Approved 4/25/2022 1:37 PM
Packet Page 205 of 338

CITY OF FAIRFIELD

RESOLUTION NO. 2022-101

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FAIRFIELD

AMENDING THE TERMS AND CONDITIONS OF THE MEMORANDUM OF UNDERSTANDING (MOU) FOR THE FAIRFIELD GENERAL MANAGEMENT ASSOCIATION

WHEREAS, the City Council of the City of Fairfield enacted the Employer-Employee Relations Resolution No. 2001-185, pursuant to the Meyers-Milias-Brown Act (MMBA), California Government Code Section 3500, et. Seq, and representatives of the city manager have met and conferred in good faith with representatives of the Fairfield General Management Association, the recognized employee organization for certain employees; and

WHEREAS, the Fairfield General Management Association has held a successful ratification vote.

NOW, THEREFORE, THE COUNCIL OF THE CITY OF FAIRFIELD HEREBY RESOLVES:

Section 1. That it approves the Memorandum of Understanding as outlined in Ex hibit A for the Fairfield General Management Association.

Section 2. The city manager is authorized and directed to do all things necessary to implement this resolution.

PASSED AND ADOPTED this 3rd day of May 2022, by the following vote:

AYES: COUNCILMEMBERS: PRICE / BERTANI / MOY / PANDURO / TIMM / TONNESEN / VACCARO

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

MAYOR

ATTEST:

____________________________

CITY CLERK
Packet Page 206 of 338Attachment 1 Page 1 of 1

CITY OF FAIRFIELD
&

FAIRFIELD GENERAL

MANAGEMENT

ASSOCIATION
July 01, 2022 - June 30, 2025

MEMORANDUM OF UNDERSTANDING

Packet Page 207 of 338Attachment 2 Page 1 of 36

TABLE OF CONTENTS
Title      Page Number
Article 1 Recognition        1
No Discrimination       1
Article 2 MOU Controlling       1
Article 3 Term         1
Dues Checkoff        2
Article 4 Management and Employee Rights     2
A. Management Rights      2
B. Employee and Association Rights    3
Article 5 Compensation and Wages      5
A. Wage Increases       5
B. Compensation Adjustments     5
C. Process for Market Compensation Adjustments  5
D. Bilingual Pay       6
Article 6 Probationary Period and Merit Review    6
A. Probationary Period      6
B. Promotion/Demotion/Flexible Staffing    6
Article 7 Leave         7
A. Holidays        7
B. Flexible Scheduling      8
C. Personal Leave       8
D. Vacation        9
E. Sick Leave       10
F. Sick Leave Accrual Cap      11
G. Bereavement Leave      11
Article 8 Health/Life Insurance, Fringe Benefits    12
A. Medical/Dental Program      12
B. Cafeteria Plan       13
C. Vision Care       13
D. Life Insurance       13
E. Employees Deferred Savings Account    13
F. Retiree Medical       14
G. Short Term Disability Insurance     15
H. Long Term Disability      15
I. Medicare        15
J. Direct Deposit       15
K. Financial Consulting Service     15
L. Retiree Medical Expense Program     15
Article 9 Uniform Allowance/Boot Reimbursement    16
A. Uniforms        16
B. Boots        16
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C. Car Allowance       16
D. Tool Allowance       17
Article 10 Tuition Reimbursement      17
Article 11 Certification/License Fee      17
Article 12 Retirement/PERS       17
Article 13 Light Duty        19
Article 14 Grievance Procedure       20
A. Definition of Grievance      20
B. Purpose        20
C. Process        20
D. General Provisions      21
D.E. Scheduling       22
Article 15 Discipline Procedures       22
Article 16 Layoff         24
A. Statement of Intent      24
B. Notification        24
C. Vacancy and Demotion      25
D. Seniority        25
E. Employment Status      25
F. Re‐Employment List      26
G. Duration of Re‐Employment List     26
Article 17 No Strike        26
Article 18 Reasonable Suspicion Drug Testing     26
Article 19 Separability and Integration       27
Article 20 Out of Class Pay       27
Article 21 Emergency Duty Pay       28
Article 22 Dispatch Shift Coverage Pay      28
Signature Page         29
Appendix 1 Side Letter – Internal Alignment Analysis    30

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1 MEMORANDUM OF UNDERSTANDING
BETWEEN THE CITY OF FAIRFIELD AND
THE FAIRFIELD GENERAL MANAGEMENT ASSOCIATION
WHEREAS, the Fairfield General Management Association ("FGMA" or the “Association") represents all general management positions excluding executive management; and

WHEREAS, the authorized representatives of the City and the authorized representatives of the Association have met and conferred pursuant to California Government Code Section 3500 et seq., and the City's Resolution No. 2001‐185, in order to reach an agreement concerning wages, hours, and working conditions within the scope of representation; and

WHEREAS, the Association and the City hereby acknowledge that the provisions of this agreement are not intended to abrogate the authority and responsibility of the City Government provided for under the laws of the State of California or the ordinances and resolutions of the City Council; and

NOW THEREFORE, the City and the Association agree to this MOU as follows:

ARTICLE 1. RECOGNITION:

The Association is recognized by the City as the exclusive representative of General Management Employees. As such, the Association has the exclusive right to serve as the negotiating representative for all such employees, on matters within the scope of representation as defined by California Government Code section 3504.

This MOU covers full‐time and pro‐rata general management unit employees who work more than 1,000 hours in a fiscal year. Pro‐rata employees who work a minimum of 1,000 hours per year and an average of twenty hours or more per week over twelve months, will receive benefits on a pro‐rated basis that corresponds to the number of hours they are regularly scheduled to work.

NO DISCRIMINATION:

In the administration of this agreement, no person covered by this MOU shall be discriminated against because of race, national origin, religion, sex, sexual orientation, disability, age, marital status or on the basis of membership or non‐membership in the Association, or participation of the activities of the Association.

Packet Page 210 of 338Attachment 2 Page 4 of 36

2 ARTICLE 2. MOU CONTROLLING:

The City's Employee Relations Resolution shall govern City employment, unless the MOU conflicts, in which case the MOU shall control.

ARTICLE 3. TERM:

The terms of this agreement shall commence from July 1, 2017 2022 and end on June 30, 20212025.

This MOU shall be administered and applied in a manner that complies with provisions of the federal, state and local disability and anti‐discrimination statutes. The City reserves the right to administer and interpret the agreement to ensure compliance with such laws. This MOU provision shall not be interpreted to grant rights in addition to those conferred by federal, state and local laws.

DUES CHECKOFF:

The City and the Association acknowledge that a dues checkoff procedure may be adopted pursuant to City Resolution No. 2001‐185.

ARTICLE 4. MANAGEMENT & EMPLOYEE RIGHTS:

A. Management Rights.

The Association recognizes that the City retains, whether exercised or not, solely and exclusively, all express and inherent rights and authority pursuant to law with respect to determining the level of and the manner in which the City's activities are conducted, managed, and administered, and the Association recognizes the exclusive rights of the City to establish and maintain City and Departmental rules and procedures for the administration of its Departments during the term of this Agreement provided that such rules and procedures do not violate any of the specified express provisions herein.

The City retains the exclusive right and authority to schedule work as required in the manner most advantageous to the City.

It is understood by the parties that every incidental duty connected with operations enumerate d in job descriptions is not always specifically described, nevertheless, it is intended that all such duties shall be performed by the employee.

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3 The City reserves the right to discipline or discharge employees for cause, subject to the City's discipline procedures. The City reserves the right to lay off personnel in accordance with the City's procedures, and as established in this MOU.

The City shall determine work assignments, and establish methods and processes by which assignments are performed.

The City shall have the right to transfer or reassign in a manner most advantageous to the City.

Except as otherwise specifically provided in this Agreement, the City retains unqualifiedly all rights and authority to which by law the City is entitled.

The City shall have the authority to affect reorganization of its Departments.

The Association recognizes that the City has rights and obligations in contracting for matters related to municipal operations. The right of contracting or subcontracting is vested exclusively in the City.

The Association pledges cooperation to increasing City efficiency and effectiveness.

Any and all rights concerning the management, organization, and direction of the City shall be exclusively the right of the City unless otherwise provided by the express terms of this Agreement as permitted by law.

B. Employee and Association Rights:

The Association and covered employees shall have those rights conferred by the Meyers‐Milias‐Brown Act, Government Code section 3500, et seq.

Employees shall not have any formal punitive personnel action taken which will result in any loss of pay or benefits, unless the employee is notified in writing as to the reason or reasons thereof and given reasonable opportunity to respond. Nothing in this clause shall prevent the City from rejecting without cause an employee during probationary status.

Formally recognized employee organizations may select not more than two (2) employee members of such organizations to attend scheduled meetings with the Municipal Employee Relations Officer or other management officials on subjects within the scope or representation during regular work hours without loss of compensation.

Where circumstances warrant, the Municipal Employee Relations Officer may approve the attendance of additional employee representatives with or without the loss of compensation. The employee organization shall, whenever practicable, submit the names of all such employee’s representatives to the Municipal Employee Relations Officer at least three (3) calendar days in advance of such meetings. Provided further:

1. That no organization representative, who is a City employee, shall leave his or her duty or work station without specific approval of the Department Packet Page 212 of 338Attachment 2 Page 6 of 36

4 Head or other authorized City Management official;

2. That any such meeting is subject to scheduling by City management in a manner consistent with operations and work schedules.

3. Nothing provided herein, however, shall limit or restrict City management from scheduling such meetings before or after regular duty or work hours under appropriate circumstances. No compensation shall be paid City employees for any meetings or related work conducted out of the normal working hours.

Reasonable access to employee work locations shall be granted officers of recognized employee organizations and their officially designated representatives, for the purpose of processing grievances or contacting members of the organization concerning business within the scope of representation. Such officers or representatives shall not enter any work location during normal work hours without the consent of the Department Head or

the Municipal Employees Relations Officer. Such consent shall not be unreasonably withheld. Access shall be restricted so as not to interfere with the normal operations of the department or with established safety or security requirements.

Solicitation of membership and activities concerned with the internal management of an employee organization, such as collecting dues, holding membership meetings, campaigning for office, conducting elections and distributing literature, shall not be conducted during normal work hours.

Recognized employee organizations may, with prior approval of the Municipal Employee Relations Officer, be granted use of the City facilities during off‐duty hours for meetings of City employees provided such space is available. All such requests shall be in writing and shall state the purpose or purposes of the meeting. The City reserves the right to assess reasonable charges for the use of such facilities.

The use of City equipment other than items normally used in the conduct of business meetings, such as desks, chairs and blackboards, is strictly prohibited, the presence of such other equipment in approved City facilities notwithstanding.

Recognized employee organizations may use portions of City bulletin boards under the following conditions:

1. Prior to posting, all materials must receive the approval of the Department or Division head in charge of the departmental bulletin board. Should the department head not approve any item for posting, and if after discussing the matter with the employee organization representative a disagreement still remains, then the matter shall be referred to the Municipal Employee Packet Page 213 of 338Attachment 2 Page 7 of 36

5 Relations Officer for determination.

2. All materials must be dated and must identify the organization that published same.

3. Unless special arrangements are made, materials posted must be removed thirty‐ one (31) days after publication date.

4. The City reserves the right to determine where bulletin boards shall be placed and what portion of them are to be allocated to employee organizations’ material.

5. An employee organization that does not abide by these rules shall forfeit its right to have materials posted on city bulletin boards.

The parties recognize that a substantial body of statutory and case law has developed relative to the rights and obligations of an employer and the employees pursuant to the Meyers‐Milias Brown Act. It is agreed by both parties that each will be bound by applicable statutory and case law. It is also agreed in the interest of maintaining improved employer/employee relations, that each part will make a good faith effort to respect the rights of the other party at all times during the life of the Agreement.

ARTICLE 5. COMPENSATION/WAGES:

A. Wage Increases: Effective upon the first full pay period after City Council approval, employees will receive a 4% base wage increase. In the first full pay period of July 2018, 2019 and 2020, employees will receive 4% base wage increase.

Upon City Council approval of this MOU, FGMA represented employees shall receive the following cost of living adjustments:

 5% increase in base wages in the first full pay period in July 2022

 3% increase in base wages in the first full pay period in July 2023

 5.5% increase in the base wages in the first full pay period in July 2024 

B. Compensation Adjustments:

The process for market comparison compensation adjustments ended with the final negotiated adjustment in 2007. The parties agree that the process for market comparison compensation adjustments, as described below, expired June 30, 2008, and will not be implemented during the term of this MOU. The parties agree to leave in language from the expired MOU to describe the process for market comparison compensation adjustments, in the event the parties negotiate such compensation Packet Page 214 of 338Attachment 2 Page 8 of 36

6 adjustments in a subsequent MOU. Retaining a reference to language for market comparison compensation adjustments is not grievable and does not obligate the City to implement such adjustments absent an explicit future agreement.

A.C. Process for Market Compensation Adjustments:

The City will gather compensation data (base salary less any employee PERS contribution not picked up by the employer) for the benchmark positions represented by FGMA, from each of the thirteen survey cities, as identified in the policy adopted by the Fairfield City Council in Resolution No. 2000‐156. The internal salary relationships specified in Resolution No. 2000‐ 156 will be used in analyzing compensation for the FGMA represented classifications. In March 2014, the City will initiate a compensation study with FGMA. The results of the study will be shared with the FGMA Board, but no adjustments will be made during the term of this contract.

If, as of March 31st of the year in which compensation is analyzed, the base salary compensation is below the mean of the survey cities, an adjustment will be made to the FGMA represented benchmark positions and the related positions based on the internal salary relationship guidelines as established in Resolution No. 2000‐156. The City will inform the FGMA on or between March 1st and May 31st which positions will be affected and the reason therefore. This base salary compensation adjustment will be effective the first full pay period of July of the year in which the adjustment is made.

D. Bilingual Pay
Each employee who meets the City’s certification and eligibility requirement will be compensated an additional $100 per month beginning the pay period following testing and certification. The city will meet with FGMA to choose the qualifying languages for bilingual pay.

ARTICLE 6. PROBATIONARY PERIOD AND MERIT REVIEW:

Probationary Period:

General Management shall serve a probationary period of twelve months.

1. Merit/Review: If appointed at (or promoted to) Step 1, employees are eligible for a merit review six months after the date the action becomes effective. If appointed above Step 1, the merit review will be twelve months from the effective date.

B. Promotion/Demotion/Flexible Staffing:

When changing an employee’s status, the following guidelines and definitions will Packet Page 215 of 338Attachment 2 Page 9 of 36

7 apply:

1. Promotion
Upon promotion the employee will receive the salary step of the new classification closest to 5% without going under 5%.

2. Demotion
Upon demotion, the employee will go to the same step as they had in their previous classification prior to the promotion. Employees who are being demoted and have not held a previous classification with the City will be placed at the same step in the new classification as that held in the previous classification.

A demotion is defined as moving from one classification to another where the top step salary of the new classification is less than the top step salary of the previous classification.

3. Flexible Staffing
An employee who moves from a level I to a level II position, will receive the salary step of the new classification closest to 5% without going under 5%.

A flexibly staffed position is defused by a classification series that contains a I and II; for example, Management Analyst I and Management Analyst II.

Employees move from a I to a II designation upon completing the minimum qualifications of the II classification and upon recommendation of management.

4. Merit Date
The annual review date will change to correspond to the effective date of the promotion, demotion or flexing of the position.

ARTICLE 7. LEAVE:

A. Holidays:

Those scheduled for a forty (40) hour work week receive the following paid holidays:

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8  New Year’s Day New Yea
 Martin Luther King Day
 President’s Day
 Memorial Day
 Juneteenth (oObserved June 19)
 Independence Day
 Labor Day
 Columbus Day
 Veteran’s Day
 Thanksgiving Day
 Thanksgiving Day – Day after
 Christmas Eve
 Christmas Day
 New Year’s Eve

Holidays that fall on Saturday shall be observed on the previous Friday and holidays that fall on Sunday shall be observed on a succeeding Monday. Sequential holidays falling on a Friday/Saturday or a Sunday/Monday shall be celebrated on a Friday and Monday.

1. Paid Holidays: Employees are eligible for paid holidays beginning the first date of hire. Employees who are required to work on holidays accrue holidays as cash payment. The accrual rate is 40 hours per year. (1.54hrs/pay period.)
To be eligible for holiday compensation (including in‐lieu holiday credit), a new hire must be in a paid status on the regularly scheduled workday immediately preceding the observed holiday. Employees who are required to work on holidays accrue holidays as cash payment. The accrual rate is 48 hours per year. (1.847 hrs/pay period.)

2. Vacation In‐Lieu or Holiday:

Employees are eligible to take vacation in lieu of holidays as they are accrued. Classifications of Water Treatment Manager, Water Treatment Supervisor I & II, who are required to report to work on holidays, accrue vacation in‐ lieu of holiday at an accrual rate of 64 hours per year (2.46 hrs/pay period). The maximum accrual rate is 64 hours per year.

B. Flexible Scheduling:

Flexible scheduling will be employed to mitigate the impact of excessive work required to be performed on weekends or during evenings that cannot be undertaken during weekdays, and required attendance at evening commission or Packet Page 217 of 338Attachment 2 Page 11 of 36

9 neighborhood meetings. With department head approval, a manager may start a workday later, or end it earlier, or take one or more workdays off, in recognition of such extraordinary work demands. For payroll purposes, such hours not worked due to approved flexible scheduling shall be counted as “regular hours.”

Flexible scheduling is not intended to give compensating time off to managers who work beyond normal office hours, or who take work home, in the completion of their normal job duties, because managers are expected to work additional hours from time‐to‐time as necessary to complete projects on a timely basis, and to meet the level of quality sought by his/her department head and which the manager asks of him/herself. However, flexible scheduling may be employed at the discretion of the department head in recognition of a prolonged and sustained period of excessive work hours involving nights and weekends which was required to complete a major project, or in the case of a significant commitment of additional work hours in response to a City emergency or disaster situation.

Flexible scheduling is intended as a reasonable accommodation to extraordinary work demands, and not as an hour leave per extra hour worked. The timing and amount of any time off is at the discretion of the manager’s department head. If a manager feels that flexible scheduling has not been used to adequately address extraordinary work hours required of that manager, he/she may request that the Human Resources Director review the situation with the manager and/or manager’s department head to achieve a satisfactory resolution.

In the event a manager is assigned to work on a City holiday, the manager may earn additional compensation in the form of time off for the number of hours worked, in lieu of flexible scheduling.

C. Personal Leavee:

Employees are eligible to use as it is accrued, subject to Department Head discretion. The annual amount available is 144.86 hours (accrues at 5.57 hours per pay period).

The amount of personal leave available for cash out upon request is 100% of the accrued hours. Upon separation from the City, employee is paid for any unused personal leave. All accruals and limits apply on a calendar year basis.

D. Vacation:

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10 Vacation leave with pay shall accrue on the following basis:

1. Years of Service: Number of Vacation Days Per Year:

From date of hire through 3rd 3.08 hours per pay period (ten (10) days per year)

Beginning 4th through 10th 4.62 hours per pay period (fifteen (15) days per year)

Beginning 11th through 19th15th 6.15 hours per pay period (twenty (20) days per year)

Beginning the 20th16th and over 7.69 hours per pay period (twenty‐five (25) days per year)

2. Vacation Cash‐Out:

FGMA represented employees may cash out up to 55100 hours of their vacation balance each calendar year; provided, however, that employees exercising their option to cash out must maintain a combined minimum balance of 80 hours between vacation, comp time and vacation in lieu after the cash out. If deferring into 457
plan, the 100‐hour maximum is not applicable, but FGMA members must keep 80 hours of combined accruals. FGMA members can elect to cash out any allowable accruals and transfer to their deferred compensation plan if they do not violate IRS law.

During the first six (6) months of employment, no vacation may be taken. Upon completion of six (6) months of continuous full‐time service, vacation accrued during the previous six (6) month period may be taken. Vacation credits are earned during each anniversary year at the rate indicated above.

Upon separation from the City, employees shall be paid for any unused vacation credit.

Departments are responsible for ensuring that maximum vacation hours that may be accrued are 2.0 times the employee’s current annual rate.

3. Reciprocity
With the City Manager’s approval, any new employees hired after July 1st 2022, shall have reciprocity for years served at other public agencies for vacation accrual.

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11 A. Sick Leave:

1. B.E. Accrual and Use:

Employees shall receive twelve (12) working days of sick leave with pay for each full year, accrued biweekly at a rate of 3.70 hours per pay period. Employees are eligible to use sick leave as it is accrued. There shall be no limit on the amount of accumulated sick leave.

Sick leave shall be allowed and used solely for cases of actual personal sickness or disability, medical or dental treatment, or as authorized for other necessary health reasons and may be used by the employee for attendance upon a member of his/her immediate family who is seriously ill and requiring the care and attention by the employee. An employee intending to use sick leave for medical/dental appointments shall notify his/ her immediate supervisor in advance of the appointment.

For purposes of this section immediate family is defined as mother, father, step‐mother, step‐father, mother‐in‐law, father‐in‐law, spouse, domestic partner, son, daughter, step child, brother, sister, grandparent, grandchild, foster parent, foster child, or a child for whom the employee is a legal guardian.

2. Yearly Payoff:

Except as herein provided, all employees may be paid annually on the first regular paycheck in December, twenty‐five percent (25%) of the unused sick leave earned during the previous twelve (12) month period, ending the last pay period in November.

Employees leaving City service at their own request shall be compensated for twenty‐ five percent (25%) of unused sick leave earned between the end of the past pay period the previous November and the date of termination.

If an employee dies while in City service, his/her beneficiary shall be entitled to the same. Employees discharged from City service shall not be eligible for benefits as outlined in this paragraph.

1.4. Payoff with Death:

If any employee dies after completing five (5) full years of employment, his/her beneficiary shall be entitled to reimbursement for fifty percent (50%) of his/her accumulated sick leave.

2.5. Payoff with Duties Related to Death:

If an employee dies due to a duty‐related death, his/her beneficiary shall be entitled to reimbursement for one hundred percent (100%) of accumulated Packet Page 220 of 338Attachment 2 Page 14 of 36

12 unused sick leave.

3.6. Payoff upon resignation or termination:

Upon resignation or termination after 15 of continuous employment, an employee shall receive, compensation for unused sick leave after fifteen years continuous employment equal to 3% per year of all unused sick leave for each year of
employment up to a maximum of 75% (or 25 years of service) of their total sick leave bank deposited in to the Retiree Health Savings account at their rate of pay upon separation. No other conversions or uses are permitted..

4.7. Payoff upon retirement:

Upon retirement, the employee’s unused sick leave is treated as follows:

The retiring employee shall receive sick leave credit equal to 3% per year of employment of all unused
remaining sick leave up to a maximum of 75% (or 25 years of service) deposited in to the Retiree Medical Benefit Plan. . This calculation shall not be affected by “early distribution” sick leave credits made pursuant to section.

7.E. At retirement, Tthe remaining balance of
unused sick leave, less the sick leave creditshall be converted to PERS service credit. No other
conversions or uses are permitted. The decision by the employee to participate or not participate in the Retiree Medical Benefit Plan is irrevocable.

C.F.Early DistributionSick Leave Accrual Cap:

Notwithstanding any other provision of this section, an all active employees with over 500 hours of sick leave as of the first regular paycheck in December, shall have converted receive a sick leave credit equal to the product of the those hours over 500 and at the pay rate then in effect, and such this amount shall be contributed by the City to the Retiree Medical Expense Program, a qualifying 457 program or other qualifying account (including post tax) in accordance with IRS and plan document rules. established pursuant to section 8.F. The FGMA may increase the threshold number of hours of sick leave a) upon implementation of the program, and b) in future years by notifying the Human Resources Department by December 1. At the time the employee’s separation payoff is computed pursuant to section 7.E, the difference between 100% and the computed separation payoff percent shall be multiplied by the number of “early distribution” sick leave hours that such employee received in previous years, and the product of the resulting number of hours and pay rate in effect upon separation shall be subtracted from the sick leave separation payoff computed pursuant to section 7.E. If either insufficient sick leave hours remain at separation or the employee does not qualify for a sick leave credit under Packet Page 221 of 338Attachment 2 Page 15 of 36

13 section 7.E, resulting in an overpayment of sick leave hours previously transferred, the employee’s RHS account balance will be debited to reimburse the City for the over payment

D.G. Bereavement Leave:

1. The Department Head may grant his/her employees up to a maximum of five (5) days of bereavement leave in the event of death or serious traumatic injury to the employee’s family. Family is defined as mother, step‐mother, mother‐in‐law, father, step‐father, father‐in‐law, spouse, domestic partner,
son, daughter, step‐ child, brother, sister, grandparent, grandchild, foster parent, foster child, or a child for whom the employee is legal guardian.

The City Manager may grant City employees up to a total often (10) days of bereavement leave. All bereavement leave requests in excess of five (5) days must be approved by the City Manager. The number of authorizations that may be made to any employee are not limited.

A “serious traumatic injury or illness” is defined as a sudden and unexpected event which requires prompt and immediate attention from the employee without delay. It may also include attending to the need of an immediate family member who is expected to die in the immediate future. Bereavement leave shall be taken immediately in conjunction with the event of death or serious traumatic Injury or illness.

City employees eligible for bereavement leave are probationary, full‐time employees, permanent full‐time employees, pro‐rata employees, and career part‐time employees.

An employee wishing to receive more than three (3) days bereavement leave must submit an employee absence form and a memo to his/her supervisor or department head for approval. The employee’s supervisor or department head submits a memo to the Administrative Services Director explaining the purpose of the request, along with the approved absence request from indicating bereavement leave. The Administrative Services Director writes a memo to the City Manager requesting authorization to grant the bereavement leave.

If a city paid holiday falls within the time period that an employee is receiving bereavement leave benefits, the holiday does not count as a day for purpose of calculating the bereavement leave.

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14 ARTICLE 8. HEALTH / LIFE INSURANCE / FRINGE BENEFITS:

Medical/Dental Program:

Full‐time employees are eligible for health and dental coverage beginning the first day of the first month after date of hire.

Effective in the first full pay period after City Council approval, the employee contribution for health and dental insurance shall be adjusted to the equivalent currently paid by confidential managers. Future contributions will be adjusted based on a 50/50 split of the increase or decrease in premium for the Kaiser $35 copay plan and the Cigna Dental HMO plan. This 50/50 sharing between the City and the employee for changes in premium to medical and dental plans will continue in the 2018, 2019 and 2020 plan years.

The City shall not automatically assume responsibility for the increase in employee medical and dental premiums after the expiration of this Agreement.

The City will advise the bargaining unit of healthcare premium renewals and will schedule a meeting with the City’s Broker of Record to allow the unit to ask questions about the rates and plans.

B. Cafeteria Plan:

Any unused balance under the “Cafeteria Plan” will be paid out with regular salary or may be used for additional medical or dependent care. Employees providing proof of other coverage may drop health/dental coverage and receive taxable income, of $518 per month. Employees electing dental only receive $518 per month less the cost of the premium for the dental plan in which they have enrolled. Employees electing medical only do not receive any payments.

The City’s Cafeteria Plan provides tax deferral of out‐of‐pocket health/dental premiums.

Medical and dependent care expenses can be paid on a non‐taxable basis. Allocation amounts must be determined at the beginning of the plan period. Services must be received during the plan period and any unused allocation will be lost. Coverage is extended to IRS approved medical and/or dependent care expenses.

C. Vision Care:

The City health plans may provide for a vision rider. The cost of the rider shall be included in the total premium for such plans. The total premium may be offset by the contribution amount specified in Section B. Employees enrolled in a health plan without a vision rider may be reimbursed up to a maximum of $435 total per calendar year for the employee and his/her immediate family for eye exam and prescription glasses/contacts, upon presentation of appropriate receipts. Amounts not used in any year cannot be carried forward to future years. Employees not enrolled in a city health Packet Page 223 of 338Attachment 2 Page 17 of 36

15 plan are not eligible for the vision reimbursement program.

D. Life Insurance:

For basic life insurance, employees covered by this MOU will be eligible the first day of the first month after date of hire. The City will pay in full an amount equal to 1.5 times the annual salary rounded to the next $1,000 for a Life and Accidental Death/Dismemberment insurance policy to a maximum of $150,000.

For supplemental life insurance, employees covered by this MOU will be able to purchase coverage equal to six times their annual salary. Health questionnaires are required for the purchase of the Supplemental Life Insurance.

B.E. Employees’ Deferred Savings Accounts:
401(a): Employees will be eligible to participate effective their date of hire. If an employee elects to enroll in the 401(a) plan, effective September 18, 2015, the City’s contribution will increase by .5% for a total of 8.24%, and the employee mandatory contribution is 4.10%. Total contributions are limited to the amount specified by Federal law. FGMA should notify the Human Resources Department by November 1 of each year, if it wishes to change the City’s contribution for the deferred percentage allocation between plans. Enrollment in the 401(a) plan is irrevocable.

457: Employees will be eligible to participate effective their date of hire. The City’s contribution to the 457 will be $0 and the employee contribution will be optional.

However, if an employee chooses not to participate in the 401(a), the City 7.74%

8.24%contribution will be added to the City’s 457 contribution, but only if the employee contributes at least 4.10%. Total contributions are limited to the amount specified by Federal law. FGMA should notify the Human Resources Department by November 1 of each year, if it wishes to change the City’s contribution for the deferred percentage allocation between plans. Changes in employee’s deferred savings account may be authorized on a monthly basis.

The City of Fairfield and the Fairfield General Managers Association (FGMA) are parties to a Memorandum of Understanding (MOU) that was extended from June 30, 2021 to June 30, 2022.

The parties agree to amend Section 8.E (Employees Deferred Savings Account) to increase the contribution from 8.24% to 9.49% to 401(a) or 457 plans to pursuant to the eligibility criteria described in the section after the first full pay period following the adoption of this side letter by City Council.

No other sections of this MOU will be amended as a result of this agreement

Packet Page 224 of 338Attachment 2 Page 18 of 36

16 Effective first full pay period of July 2022, The City’s contribution will increase from

9.49% to 10.40% and the employee will contribute 4.1% to total 14.5%

The City will endeavor to implement a 457 Roth plan as an option for employee contributions.

F. Retiree Medical:

Employees may continue enrollment in City retiree health plans at their option, and at their cost, upon retirement. Employees will be allowed a one‐time irrevocable election at the time of retirement to elect retiree coverage. Retirees may be enrolled in either the health or dental plans, or both. Retirement shall mean employees who retired from the City of Fairfield with a PERS retirement at the time of separation and who remain continuously retired under PERS.

Retirees are responsible for paying the full cost of the premium by the due date set by the City. If payment is not timely received, the retiree and any spouse or dependent, shall be terminated from the program without right to re‐enroll at a later date.

Retirees must enroll in a Medicare‐supplement plan when they become eligible for Medicare, presently at age 65. Failure to enroll in a Medicare‐supplement plan will result in termination from the program. The Medicare premium is the responsibility of the retiree.

In the event of a death of a retired employee, the surviving spouse and dependents who are participating in the city plan at the time of death of the retired employee, may continue on the City health insurance plan at his/her own cost under COBRA regulations only, subject to plan restrictions and conditions.

For all retirees, once health and dental coverage is terminated, it cannot be later reinstated.

G. Short Term Disability Insurance:

The City administers the self‐funded Short‐Term Disability (STD) plan. The STD benefit schedule shall match the State Disability Insurance (SDI) benefit schedule. The benefit commences after a 7‐day waiting period, or immediately, if hospitalized. Coverage is for non‐industrial injuries for a maximum of 180 days. The current premium is $6.00/month paid on an after‐tax basis by the employee which may be adjusted annually based on an actuarial study. An employee is eligible the first of the month after three (3) months continuous employment. STD payments received are non‐taxable, as permitted by law.

H. Long Term Disability:

Employees will be eligible the first day of the first month after date of hire. There will be a 180‐day waiting period after the date of the injury or illness causing the disability before employees are eligible for benefits. The maximum benefit will be equal to 60% of Packet Page 225 of 338Attachment 2 Page 19 of 36

17 salary, subject to the benefit maximum. The City reserves the right to change insurers at its discretion.

I. Medicare:

All employees hired on or after April 1, 1986 shall contribute a portion of their gross salary (1.45%) for Medicare coverage as determined by federal regulations.

J. Direct Deposit:

Upon written request from an employee, their paycheck shall be directly deposited in an approved bank, savings and loan or credit union.

K. Financial Consulting Service:

Optional enrollment; enrollment irrevocable while employed with the City; current service provided through the Association with Benefits Communication Network (BCN); employee pays $24/yr.

L. Retiree Medical Expense Program:

The City provides a Retiree Medical Expense Program via ICMA VantageCare. The Retiree Medical Expense Program shall have the following attributes: tax‐free treatment of health benefits, tax‐deferred treatment of earnings and payments, ability to charge any health premiums and unreimbursed health costs (not just City health plans), assets remaining after employee’s death go to spouse/dependents. The City shall contribute $50.00 per month per employee toward this program.

ARTICLE 9. UNIFORM ALLOWANCE/BOOT REIMBURSEMENT/TOOL

ALLOWANCE
A. Uniforms:

The City shall provide a uniform allowance to those employees who have been required by their Department Head to wear a Department approved uniform. The annual allowance is as follows:


Dispatch Shift Supervisor ‐ $800
 Fire Prevention Supervisor ‐ $650

Police Support Supervisor assigned to Code Enforcement ‐ $800

Subject to the discretion of the Department Head or designee, employees receiving a uniform allowance shall be required to wear their uniform while at work.

Should the City establish a new FGMA classification whose subordinates receive a uniform allowance, the parties agree to discuss whether to provide a uniform allowance for the new classification based on the above paragraph.

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18 The allowance shall be paid in two equal installments. The dates for these payments shall be the first pay date in June and the first pay date in December. The uniform allowance shall be reported to PERS as special compensation pursuant to PERS regulations.

B. Boots:

The City shall provide an annual boot reimbursement for any member in the bargaining unit who is required to wear specialized footwear in a portion of their normal duties in an amount not to exceed $150 per calendar year. This amount will increase in January 1, 2010 to $175 per calendar year. The boots purchased must have the following attributes: oil resistant, leather uppers, ankle height or above, and any other specific requirements as stipulated by management.

C. Car Allowance:

At the discretion of the City Manager, a car allowance is provided to employees in lieu of a mileage reimbursement. The City Manager will consider those employees whose Department Heads have requested they receive the Car Allowance. The decision of the City Manager is final and is not subject to a grievance.

D. Tool Allowance:

Vehicle Maintenance Supervisors will receive a $400 tool allowance to repair or replace their personal tools which are used in the workplace. The allowance will be paid on the first pay date in June and will commence in June 2013.

ARTICLE 10. TUITION REIMBURSEMENT:

The City will provide a tuition and books reimbursement program to non‐probationary employees for educational activities which are directly job‐ related and approved in advance by the Department Head, subject to reimbursement guidelines established by the City’s Director of Human Resources. The annual tuition reimbursement amount available per employee, per calendar year, is $4,000.

ARTICLE 11. CERTIFICATION/LICENSE FEE
: Employees who are required by the City as a condition of employment, continued employment, or as a standard in the employee’s profession to obtain state certification or licensing in the field in which they are employed by the City shall be reimbursed by the City, upon successful completion of such certificate or license, for the actual cost of such certificate or license.

ARTICLE 12. RETIREMENT/PERS:

For employees hired by the City before the effective date of the PERS contract that modifies the formula for new hires as described below, the City’s contract with the Public Employee’s Retirement System (PERS) shall provide for the following benefits to Packet Page 227 of 338Attachment 2 Page 21 of 36

19 the extent provided by the Public Employee’s Retirement Law (PERL):



2.7% @ 55 retirement formula, (GC 21354.5)

Death benefits ‐ Basic Level (GC 21532)

 1959 survivor’s benefits (Level IV) (GC 21574)

 Continuation of Pre‐Retirement Death Benefits After Remarriage of Survivor (GC 21551)

 Industrial Disability Retirement for Miscellaneous Members (GC 21151) PERS unused sick leave credit option (GC 20965)

 Single highest year coverage (GC 20042)

 Military service credit as public service (GC 21024)

Employee Sharing Cost of Additional Benefits (GC 20516) Upon approval of the City Council the City shall adopt a two tier retirement system which shall apply to all employees hired after the effective date (8/26/2012) and subject to PERL. The benefits of the second tier are as follows:
 2.5% @ 55 retirement plan (GC 21354.4)

 Death benefits — Basic Level (GC 21532)

1959 survivor’s benefit (Level IV) (21574)
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20 
Continuation of Pre‐Retirement Death Benefits After Remarriage of Survivor (GC 21551)
 )
Industrial Disability Retirement for Miscellaneous Members (GC 21151) 
PERS unused sick leave credit option (GC 20965)

Three year average (GC 20475)

Military service credit as public service (GC 21024)

Employee Sharing Cost of Additional Benefits (GC 20516)

B. Currently, Classic Member FGMA employees pay 8% of salary toward PERS costs. This is comprised of the employee paying 5.5% (of a total 8.0%) of the Employee rate, plus

2.5% of the Employer rate. Classic Member FGMA employees will begin to pay an additional 1.25% of Employer PERS cost the first full pay period following City Council adoption of the successor MOU. Employees will begin to pay a further 1.25% of Employer PERS cost the first full pay period in July, 2018. Total Employee PERS contributions after these two increases will be 5.5% of the Employee PERS cost and 5.0% of the Employer PERS cost.

The City will continue to maintain the 2.5% EPMC at full City cost through the end of fiscal year 2020‐21. Classic Member FGMA employees will begin to pay 0.25% of the Employer PERS cost to help fund the 2.5% EPMC the first full pay period in July, 2020.

Total Employee PERS contributions after this increase will be 5.5% of the Employee PERS cost and 5.25% of the Employer PERS cost.

C. Employer paid member contribution (EPMC) is reported to PERS as salary for PERS retirement purposes only.

D. Employees may purchase service credit through pre‐tax payroll deduction. (IRS Section 414 (h) (2)

E. Effective January 1, 2013, employees who are hired and are for purposes of PERS considered new employees as defined by PERL are eligible for 2% @ 62 with a three year Packet Page 229 of 338Attachment 2 Page 23 of 36

21 average for final compensation. Employees in this group will only pay 50% of the total normal cost as determined by PERS.

ARTICLE 13. LIGHT DUTY
: Light duty may be provided for employees who are unable to work due to injury or illness from either industrial or non-industrial causation. Further, workers’ compensation law and disability plans provide that an employee is not entitled to temporary disability benefits if suitable light duty work is available. The basic principles are as follows:

 The employee is temporarily not able to resume full duty, but is capable of performing some work duties.

 The employer may develop a light duty work assignment commensurate with the employee’s temporary work restriction.

 If the employee declines suitable light duty work, the employee is no longer entitled to temporary disability benefits.

It is the City’s policy to temporarily provide light or modified duty work assignments, when possible to all injured employees until they can return to full work status.

However, the City is under no obligation to provide light or modified duty if there is none available.

A physician may return an injured employee to duty with work restrictions prior to releasing the employee to his/her regular full work duties. It is important that the treating physician understand the physical job demands of the injured worker in order to prescribe the proper work restrictions. The City must communicate with the treating physician the essential functions of the job classification is that necessary work restrictions may be determined. Risk Management consults with the physicians to provide this information on an as needed basis.

A “light duty” assignment is made when an employee’s work restriction (s) can be temporarily accommodated within his/her normal duties. A “modified duty” assignment is made when an employee’s work restrictions(s) is considered to be permanent and their position duties are accommodated to allow for the work restriction.

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22 Under this policy, Supervisors have the added responsibility to ensure that any and all work restrictions specified by the treating physician are rigidly adhered to and enforced during the period of light or modified duty assignment, and employees are required to adhere to the work restrictions.

Light and/or modified duty assignments shall be considered flexible and adaptable to meeting the particular needs of both the disabled employee and the department. This may include assignments of less than eight (8) hours a day, frequent breaks, the use of modified work
stations, and so forth. Each situation will be evaluated on an as‐needed basis. The assignment of a light or modified duty position shall not be considered a permanent job placement.

If an employee is released by his or her treating physician to light or modified duty, Human Resources follows up with the department to determine whether the employee can be returned to work in a light duty mode. If the department does not have a light or modified duty assignment for the employee, the employee receives temporary disability payments for industrial injury or illness, and may be eligible for short term disability benefits for non‐ industrial injury. The City may assign employees to light duty work in other departments or divisions provided that the work duties are appropriate for the skills of the employee and the work restrictions.

ARTICLE 14. GRIEVANCE PROCEDURE:

A. Definition of Grievance
: A grievance is defined as an allegation by the Association or an individual covered by the Memorandum of Understanding (MOU) that the City has violated: (a) an express term of the MOU; (b) a written personnel rule or regulation in the City; or (c) an established City policy governing personnel practices or working conditions.

B. Purpose
: It is the intent of the parties to deal with and settle grievances informally, promptly and fairly, and at the nearest practical organizational level.

C. Process
: In any instance of a grievance, the employee or employees concerned shall first make efforts to resolve such grievance informally with their immediate supervisor within twenty (20) calendar days following the occurrence of the events on which the grievance is based.

1. First Step:

If a mutually satisfactory solution of a grievance is not reached after informal discussion with the immediate supervisor then the aggrieved party shall submit a formal written grievance to the immediate supervisor within five (5) working days. The immediate supervisor must submit a written response Packet Page 231 of 338Attachment 2 Page 25 of 36

23 within five (5) working days.

2. Second Step
: If the grievant is not satisfied with the supervisor’s response, the grievant(s) may advance the grievance to the second level supervisor within five (5) working days. The second level supervisor shall consider the matter and submit a written response within five (5) working days after receiving the grievance.

3. Third Step
: If the grievant is not satisfied with the second level supervisor’s response, the grievant may advance the grievance to the Department Head within five (5) working days after receiving the second level supervisor’s response. The Department Head shall consider the matter and submit a written response within five (5) working days after receiving the grievance.

4. Fourth Step
: If the grievant is not satisfied with the Department Head’s response the grievant may advance the grievance to the City Manager within five (5) working days after receiving the Department Head’s response. The City Manager (or designate) shall consider the matter, and may hold a hearing at his/her discretion and submit a written response within ten (10) days after receiving the grievance. The decision of the City Manager shall be final.

A. General Provisions:

1. D. Consolidation of Grievances
: In order to avoid the necessity of processing numerous similar grievances, a single “class grievance” may be filed by employees who are within a single department. The City also reserves the right to consolidate responses to such grievances.

2. Requirements for Written Grievances
: Grievances must contain the following information in order to be considered:

(a.) the grievant’s name, signature and classification;

(b.) a list of those specific policies or MOU provisions alleged to have been violated;
violated

(c.) a statement of the facts and circumstances supporting the Packet Page 232 of 338Attachment 2 Page 26 of 36

24 grievances;

(d.) a description of all relief requested; and

(e.) the address where the grievant wishes the grievance to be postmarked.

3. Receipt of Grievance
: A grievance shall be considered “received” within five (5) days of being Postmarked to the address specified by the grievant.

4. Time Limitations
: If a grievant fails to advance the grievance to the next step, as specified in this procedure, the grievance shall be considered withdrawn. If the City fails to respond within the time specified in this procedure, the grievance shall be considered advanced to the next step. Notwithstanding any provision in this section, any time limit or stage of procedure specified in this section may be waived or modified upon the written consent of all parties involved.

E. Scheduling
: During the determination of a grievance herein, there shall be no interruption of scheduled work relating to the grievance. Whenever reasonable y feasible, grievances shall be handled during the regularly scheduled working day hours of the parties involved, and at a mutually convenient time for all affected parties.

a. Advances
: With the written consent of the City, grievances may be submitted directly at Step 3 or 4 of the grievance procedure.

ARTICLE 15. DISCIPLINE PROCEDURES:

The City will follow Department of Labor (DOL) regulations pertaining to FLSA in implementing disciplinary deductions. As used in this section, working day shall refer to the employee’s working day of the party involved (employee, supervisor, Department Head, City Manager and/or their designees), depending upon whose response or action is pending.

A. For suspensions of three (3) days or less, steps 1‐7 shall be followed. Written reprimands are not appealable.

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25 1. The immediate supervisor may meet with an employee to discuss proposed discipline actions after notifying the employee in writing that such a meeting is being held for the purposes of ascertaining whether disciplinary action is appropriate.

2. After any meeting or meeting held under paragraph A.1, the supervisor shall notify the employee of the proposed discipline action by written notice containing the following:

a. A description of the action taken and its effective dates;

a.b. A clear and concise statement of the reasons for such action, including
the acts or omissions on which the disciplinary action is based;

b.c. A statement advising the employee of the right to respond, either
verbally or in writing, to the authority proposing the action prior to its effective date;

c.d. A statement that a copy of the materials upon which the action is based is attached or available for inspection upon request; and

d.e. A statement advising the employee of the method and right to appeal
and the time within which the appeal must be made.

3. If the employee disagrees with the proposed disciplinary action, he or shall within five (5) working days of the written notice request a meeting with the supervisor recommending discipline to attempt to resolve the issue.

4. The supervisor shall confirm the results of the meeting in a memorandum to the employee. If the employee disagrees with the results, the employee may submit the matter to the employee’s second level supervisor for discussion within five (5) working days from the date of the memorandum.

5. The second level supervisor shall meet with the employee within 10 working days from the date of the appeal. The supervisor shall issue his/her decision in writing within 10 days of the meeting. If the employee disagrees with the supervisor’s decision, the employee may appeal the decision to their Department Head within five (5) working days of the date of the written response from the second level supervisor.

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26 6. The Department Head shall meet with the employee within 10 working days from the date of the appeal. The Department Head shall issue his/her decision in writing within 10 working days of the meeting. If the employee disagrees with the Department Head’s decision, the employee may appeal the decision to the City Manager within five (5) working days of the date of the written response from the Department Head.

7. The City Manager shall meet with the employee within 10 working days from the date of the appeal. The review at the City Manager’s level is not a full evidentiary hearing. The City Manager (or designate) shall consider the matter, may hold a hearing in his/her discretion, and will submit a written response within ten (10) working days after the hearing is held. If a hearing is not held, the response shall be issued within 10 working days of receiving the appeal.

B. For suspensions for more than three (3) days, demotions or terminations, Steps 1‐7 under paragraph A shall be followed, along with the additional steps below:

1. An employee who has been suspended for more than three (3) days, demoted or terminated may appeal the decision of the City Manager, within five (5) working days of receiving the City Manager’s decision. The City Manager shall appoint a hearing officer from State Mediation and Conciliation Service or other such organization whose purpose is to provide a qualified hearing officers who shall conduct an administrative hearing. The City Manager or designee shall consult with the employee’s representative prior to making the appointment. The hearing officer shall be a neutral party from outside the organization.

2. The fees and expenses of the hearing officer and court reporter shall be borne equally by the parties. Other expenses shall be borne by the party incurring them and neither party shall be responsible for the expenses of witnesses called by the other;

3. A party requesting a transcript to the hearing shall bear the cost thereof;

4. The hearing officer shall hold a hearing and make a recommendation to the City Manager to sustain, modify, or reverse the disciplinary decision. A copy of the recommendation will be forwarded to the employee. The City Manager or designee will then issue a final decision within ten (10) working days of receiving the recommendation and may, but is not required, to accept the hearing officer’s recommendation.

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27 5. This procedure does not constitute a waiver by the employee’s representative of its right to request a review of the City’s decision in a court of law pursuant to Code of Civil Procedure § 1094.5.

ARTICLE 16. LAYOFF
: The City will consult with FGMA on furloughs, voluntary time off (VTO) and/or alternative working schedules as an option to mitigate budget reductions.

A. Statement of Intent
: If it becomes necessary for the City to abolish any position, the employee holding such position or employment may be laid off or demoted for purposes such as shortage of funds or shortage of work Such layoffs shall not be considered disciplinary actions for appeal purposes.

B. Notification
: Employee to be laid off or demoted shall be given, whenever possible, at least thirty (30) calendar days prior written notice. In lieu of the thirty days written notice, the City may choose to give the laid off employee up to one month’s severance pay. Upon written request of the employee, the department head or designee will approve up to one month’s severance pay for the laid off employee.

C. Vacancy and Demotion
: Except as otherwise provided, whenever there is a reduction in the work force, the appointing authority shall first demote to a vacancy, if any, in a lower class for which the employee is qualified. All persons so demoted shall have their names placed on the re‐
employment list.

When the Director of Human Resources believes that the best interest of the City requires the retention of employees with special qualifications, characteristics, skills and fitness for the work, the Director of Human Resources may prepare a written request to the City Manager to grant an exception to the order of layoff after consultation with representatives of the recognized employee association.

An employee affected by the layoff shall have retreat rights to displace an employee in the same department who has less seniority in a lower class in the same class series or in a lower classification in which the affected employee once had permanent status.

Employees may displace only those employees who have less seniority in the same classification within the City.

D. Seniority
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28 : In order to retreat to a lower class an employee must request displacement action in writing to the Human Resources Department within five (5) working days of receipt of the notice of layoff.

Employees retreating to a lower or similar class shall be placed at the salary step representing the least loss of pay. In no case shall the salary be increased above that received in the class from which the employee was laid off. Employees retreating to a lower or similar class shall serve a probationary period in the new class unless they have previously successfully completed a probationary period in the class.

E. Employment Status
: In each of the positions, employees shall be laid off according to employment status in the following order: temporary, provisional, probationary, and permanent.

Temporary, provisional, and probationary employees shall be laid off according to the needs of the service as determined by the appointing authority.

 In cases where there are two or more permanent employees in the class from which the layoff is to be made shall be laid off in inverse order of seniority in City service.

F. Re‐employment List
: The names of persons laid off or demoted in accordance with these rules shall be entered upon are‐employment list. Such a list shall be used by the appointing authority when a vacancy arises in the same or lower class position before certification is made from the eligible list.

G. Duration of Re‐employment List
: Names of persons laid off shall be carried on a re‐ employment list for two (2) years, except that persons appointed to permanent position of the same level as that which laid off, shall, upon such appointments, be dropped from the list. Persons who refuse re‐ employment shall be dropped from the list. Persons re‐ employed in a lower class shall be continued on the list for a higher position for two (2) years. All persons re‐employed after one (1) year shall be required to serve a new probationary period.

ARTICLE 17. NO STRIKE
: The Association, on its own behalf and on behalf of the unit employees it represents, agrees that during the term of this MOU, and throughout all periods when there is any effort or procedure underway to arrive at a successor Agreement, and during any period when the law prohibits strike activity, there will be no strike, work stoppage, concerted Packet Page 237 of 338Attachment 2 Page 31 of 36

29 unauthorized absences slow‐down, or refusal to cross picket lines of any sort, and that the Association will not directly or indirectly encourage or condone such actions by unit employees.

Any bargaining unit member violating this provision shall be subject to disciplinary action, up to and including termination of employment.

This provision may be specifically enforced in any court of competent jurisdiction.

ARTICLE 18. REASONABLE SUSPICION DRUG TESTING
: In addition to employees already covered under the Department of Transportation (DOT) drug and alcohol testing, all FGMA employees will participate in reasonable suspicion drug and alcohol testing, following the reasonable suspicion testing procedure in the City of Fairfield Substance Abuse Policy.

ARTICLE 19. SEPARABILITY AND INTEGRATION
: Except as specifically provided herein, if any article or provision of this Agreement, or any portion thereof is in conflict or inconsistent with applicable laws, or otherwise held to be invalid or unenforceable by any tribunal of competent jurisdiction, such article or provisions, or portion thereof shall be suspended and superseded by such applicable law and the remainder of such article, provision, or portion thereof of the Agreement shall not be affected thereby.

ARTICLE 20. OUT OF CLASS PAY
: Employees assigned to work out‐of‐class shall receive a temporary salary upgrade of 5% (calculated on their base rate of pay) on the following conditions:

1. The assignment is made to a higher class that has a 5% or greater pay differential;

2. The assignment requires the employee to perform duties included in the job description for the higher class due to either a temporary vacancy or specific short‐term work;

3. The assignment is approved by the affected Department Head, or designee; and,

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30 4. The 5% increase will take effect following the 14th consecutive calendar day of the out‐ of‐class assignment.

Employees, who are members of FGMA and are given a higher classification acting duty assignment in a classification in another bargaining unit, will continue to have all pay and benefits determined by this MOU.

The City of Fairfield and the Fairfield General Managers Association (FGMA) Agree to continue to meet and confer to address FGMA’s concerns regarding long term acting/out of class assignments for its represented employees. The parties further agree to start the meet and confer process as soon as the MOU is adopted by the City Council.

ARTICLE 21. EMERGENCY DUTY PAY: The City agrees to create a fund with a value of $26,319 to provide compensation for employees who work in the Emergency Operations Center (“EOC”) subject to the conditions described herein. Employees who work more than 40 hours in an FLSA work period because they are assigned by the City (this excludes volunteers) to work in the EOC either during a declared Emergency or during the annual Tomato Festival will receive hour‐for‐hour straight time pay drawn from the fund not to exceed 20 hours per event. The straight time pay will be based on the hourly equivalent of each employee’s annual base salary. Once the fund has expended the $26,319, this additional compensation for working in the EOC shall cease.

Additional compensation to be paid to FGMA represented employees as follows: to provide compensation for employees who work in the Emergency Operations Center (“EOC”) subject to the conditions described herein to work in the EOC either during a declared Emergency or during annual EC activations will receive hour‐for‐hour straight time pay. The Packet Page 239 of 338Attachment 2 Page 33 of 36

31 straight time pay will be based on the hourly equivalent of each employee’s annual base salary.

The City agrees to provide compensation for employees who work in the Emergency Operations Center (EOC) anytime an employee is assigned to work in the EOC outside of their normal shift. The compensation will be hour‐per‐hour Pay, or CTO at the straight time rate. FGMA members can elect CTO or PAY at straight time rate. Employee may cash‐out CTO upon request.

If the employee is subject to call outs and must be onsite to participate in emergencies or special projects, and this time exceeds two (2) hours the employee will be paid straight time overtime until job is completed, or the employee is relieved from duty.

If an employee is assigned for any type of mutual aid for other agencies and are deployed, they will be paid at straight time overtime for the duration of the assignment.

The parties further agree to reconvene in July 2023 and meet and confer on the cost implications of this provision to make sure of its long‐term feasibility.

ARTICLE 22.

DISPATCH SHIFT COVERAGE PAY
: Effective December 8, 2017, Dispatch Supervisors shall be paid at time and one‐half at their current step base pay for hours worked in excess of a 40 hour40‐hour FLSA work week when covering a shift in the Dispatch Center.

SIGNATURE PAGE FOR MEMORANDUM OF UNDERSTANDING
REACHED BETWEEN
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32 THE REPRESENTATIVES OF THE CITY AND
THE FAIRFIELD GENERAL MANAGEMENT ASSOCIATION

City of Fairfield Fairfield General Management Association

_______________________________ ______________________________ David J. Gassaway George Shimboff
Interim City Manager FGMA President

_______________________________ ______________________________ Date Date

______________________________
Dean Patterson
Negotiating Team Member

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Page 30 ends

Fairfield City CouncilMay 3, 2022

Fairfield City Council
May 3, 2022