Hollister City Council
September 15, 2025

8 5. Modifications
The City agrees not to make any other modifications in the current CalPERS contract without a vote of all affected employees.

F. 6. Participation in the PORAC Retiree Medical Trust-Sworn EmployeesRetiree Medical Trust (RMT)

1. Participation. The Hollister Police Officers’ Association will establish participation in a retiree medical plan administered by the PORAC Retiree Medical Trust, and the cost of establishing the Trust shall be at no cost to the City. The City is not a party to the Trust, aside from transferring funds, and has no obligations to the management, regulatory compliance or performance of the Trust.

2. Payroll Contribution to the PORAC Retiree Medical Trust. The City will comply with rules and polices set by the Trust Office in regard to payment of contributions.

a. a. Mandatory Employee Contributions. The City will transfer a mandatory pre-tax employee contribution of of Hollister (the "City") and the currently working in the bargaining unit represented by the Association. on on a pre-tax basis from the pay of every sworn employee covered by this employee, no employee election forms designating the amount will be needed, allowed or requested; and there shall be neither an employee election to opt in or out of employee contributions, or to determine the amount of the contribution.

b. Retirement Credit. The contribution shall be included as salary for the purpose of calculating retirement benefits.

c. Remittance of Employee Contributions. The contributions discussed in this section shall be paid by ACH transfer to the Trust’s bank account in accordance with the rules set by the Trust Office.

d. Deadline to Remit Employee Contributions. The contributions discussed in this Section B shall be remitted to the Trust as required herein no later than 30 days after the payroll payment date.

e. Late Contributions. If the contributions required under this MOU are paid later than the 90th day after the payroll payment date to which the contributions are related, interest will be charged to the City on all contributions at the rate provided by applicable law, for the period starting with the payroll payment date.

3. Reporting and Audit Rules. The City hereby acknowledges receipt of the Trust Agreement governing the Trust and will comply with rules set by the Trust Office in regard to reporting and transferring the required contributions set forth above.

a. Demographic Information Report and Updates.

i. Initial Report. City shall electronically provide an initial report of demographic information, which shall include: Social Security Number (or unique identifier), first name, last name, gender, address (city, state, zip code), contact information (email address

9 and phone number), birth dates, and hire dates, for all participating employees.

ii. Updates. City shall send updates to this information to the Trust Office whenever the City has notice of changes to the information and also whenever the City has a newly hired employee included in the Regular Contribution Report, or has dropped a terminated employee.

iii. Deadline. The City shall send the Demographic Information Report under this Section a.i within 15 days of the first contribution to the Trust. The City shall send updates to this report within 15 days of receipt of the updates to the information included in the Demographic Information Report or within 15 days of including a new employee on the Regular Contribution Report. This
Demographic Information Report shall be furnished in the format that the Trust Office requests.

b. Regular Contribution Report. The City shall electronically submit to the Trust Office a Regular Contribution Report with each transfer of contributions to the Trust. This Regular Contribution Report shall be sent in the format requested by the Trust, and received by the Trust Office within five (5) days of each receipt of contribution funds. This Regular Contribution Report shall include the data that the Trust Office requests concerning employees and contributions, including at least:

i. Leave funds. Identify the employees receiving a transfer of leave funds to the Trust and the amount received on behalf of each employee; and

ii. Terminations. The reason that an employee was dropped off of the Regular Contribution Report, e.g., involuntary termination, voluntary termination, retirement, resignation, promoted out of bargaining unit, leave without pay.

c. Failure to Provide Reports. The City hereby acknowledges that the Trust may refuse to accept contributions or take other legally permissible actions with respect to the City’s contributions and employees’ benefits from the Trust if the City does not comply with the Trust Office’s rules regarding the aforementioned contribution reports.

d. Payroll Audit. The City and Hollister Police Officers’ Association hereby acknowledge receipt of the Trust Agreement governing the Trust and will cooperate with the Trust in allowing a payroll audit for the purpose of ascertaining if the proper amount of contributions have been made. The City and Hollister Police Officers’ Association shall timely cooperate with the Trust Office’s audit rules and any requests made or authorized by the Trust’s auditor.

4. Exclusive Purpose of Trust. The monies contributed to the Trust shall only be used for retiree health insurance premiums or health care expenses, as allowed by law. There shall be no employee election/option available to take such amount in unrestricted cash.

10 5. Separate Trust. The purpose of this Trust shall be to provide for retiree health care expense reimbursement benefits. The Trust shall be and remain separate and apart from any City health insurance funding program, unless changed by mutual written agreement of the parties.

The Association shall have the option, during the term of this Agreement, to direct City to prospectively increase the employee contribution rate in Section 2.a by some multiple of $25 for each employee, subject to approval of the Association members according to the Association’s internal rules and as long as the modification is mandatory for all employees covered by this Agreement. The Association will give the City sixty (60) days’ notice of a change in employee contributions

6. Renewal or Ratification of Memorandum of Understanding. Following the renewal or ratification of this Memorandum of Understanding, the City or Association shall electronically send the executed Memorandum of Understanding to the Trust Office within 14 days of such renewal or ratification. At the same time, the City and Association shall each provide the Trust Office with the name, phone number, and email address of the person(s) that the Trust Office should contact with any questions regarding the Trust.

1. 1. An employee authorized or required to work overtime in excess of the assigned scheduled shift shall be compensated for either compensatory time or overtime compensation at the additional rate of time and one-half.

2. At the time overtime is worked, the employee has the option to request either overtime compensation or compensatory time.

3. Unit members may accrue up to a maximum of two hundred eighty (280) hours of compensatory time. Unit members may not take more than sixty (60) hours of accrued compensatory time in conjunction with any other accrued leave balances. An employee in this unit shall be allowed to cash out any portion or all of their compensatory time balances at any time.

4. Whether or not the requested compensatory time is granted, in lieu of overtime pay, shall be at the sole discretion of Management.

5. Requests for compensatory time off should be made to an employee's immediate supervisor a minimum of five (5) work days prior to the beginning of the first work day requested off.

6. Management shall approve or reject a request for compensatory time off within two (2) management working days of the request.

7. The City agrees that additional hours devoted to training, the employee has the option to request either overtime compensation or compensatory time at the rate of time and one- half.

GH. Call Back Pay

11 1. Any member of this unit who is called back to work after he/she has worked their scheduled shift and has departed from the place of employment shall be compensated for a minimum of 3 hours at their with overtime for the time worked at the rate of time and one-half with a minimum of three (3) hoursrate of pay, regardless of the actual time worked, unless the employee’s actual time exceeds this minimum.

2. If the actual time worked exceeds the minimum guaranteed hours, the employee shall be compensated for all hours worked according to applicable overtime regulations and City policies.

Call Back Pay shall commence at the time the employee is contacted by a supervisor or their designee and shall conclude when the employee completes the assigned tasks.

Time/DMV Hearing/Telephone Standby Pay for Court/Parole Hearing

1. An employee of this unit who is required to attend/standby court/hearing shall be compensated a minimum of four (4) hours callback time at time and one-half, and for each hour thereafter at the employee’s regular hourly rate of pay.

2. An employee of this unit who is required to be available by telephone for Court/DMV Hearing/Parole Hearing, shall be compensated a minimum of two (2) hours overtime at time and one-half, or one-half hour overtime at time and one-half for every hour on standby, whichever is greater.

Employees who perform technical bilingual skills (reading, writing and oral translation) for the benefit of the City on a regular and ongoing basis and who successfully pass a City- administered proficiency test shall receive an allowance based on the level(s) of bilingual competency listed below.

Level I – Oral Translation
For employees who demonstrate the ability to communicate effectively by way of successfully passing the oral proficiency test, shall receive an allowance of two hundred twenty-five dollars ($225.00) per month. Employees who become eligible for Level 1 will be required to serve as an oral translator on a regular and on-going basis, per the City’s needs.

Level II – Written translation
For employees who successfully pass the written proficiency test, shall receive an additional amount of one hundred seventy-five dollars ($175.00) per month. Each department within the City will be allowed 3 positions of level 2 bilingual services. If a department’s need for bilingual services becomes greater than the allotted 3 positions, the department head may request to increase its bilingual services pending City Manager’s approval.

Employees who become eligible for Level II will be required to serve s an oral translator and/or provide written translation in the course of the employee’s duties on a regular and ongoing basis, per the City’s needs. These employees may be called upon by other departments on an as need basis.

Such Level II Bilingual Translators shall perform written translations that are viewed by a large audience of city residents (i.e. City mailers, information brochures, inserts in City utility billings, social media, public notices, and any additional documents as needed.) Employees, who are currently receiving Level I Bilingual Allowance, will not be required to retest in order to continue receiving the monthly allowance.

12 K. Field Training Officer Assignment
Any personnel in a Sworn Police Officer classification, who is assigned as Field Training Officer for a Police Officer in training shall receive premium pay of two and half percent (2.5%) of base salary per year minimum assignwhile assigned to this position..

L. Senior Police Officer
The Chief of Police, at his/her own discretion, shall designate police officers/detectives as Senior Police Officer. To be eligible, officers/detectives must:

1. Not be on Probation or Special Evaluation, and;

2. Have a minimum of five (5) years total experience as a police officer, and;

3. Be recommended by Supervisors and Command Staff.

Qualification for designation of Senior Police Officer shall be based upon performance as reflected in the officer's/detective’s previous performance evaluation, and is renewable on an annual basis. The minimum qualifying performance shall be based on the previous evaluation as follows:

OFFICERS

1. No "Below Standards" ratings, and;

2. At least fifty percent (50%) ratings as “Above Standards” or above in the following specific categories:
a. Section 2I "Enforcement and Service DeliveryQuantity of Work," with at least one (1) “Above Standards” or above in either Subsection E (problem solving) or Subsection F (activity and service level);
b. Section 3II "Report WritingQuality of Work";
c. Section 6VI "Public Relations and Customer ServicePersonal Relations"; and d. Section 4VII "Work Habits".

1. No “Below Standards” ratings, and;

2. At least fifty percent (50%) ratings as “Above Standards” or above in the following specific categories:

a. Section 1I “InvestigationsJob Skills and Abilities”, with at least one (1) “Above Standards” or above in either Subsection D (accomplish your share of the work) or Subsection G (assist in handling the workload of the unit); b. Section 3II “Case Reports/Written WorkQuality of Work”;

13 c. Section 6VI “Public Relations and Customer ServicePersonal Relations”; and d. Section 4VII “Work Habits”.

Failure to maintain the minimum qualifying performance Mmay result in the suspension of the Senior Police Officer designation. Such suspension of the Senior Police Officer designation shall not constitute disciplinary action and shall not be appealable.

Senior Police Officers shall be eligible to serve as acting supervisors in the event no Police Sergeants are on duty or available. Unless designated as an acting supervisor, Senior Police Officers shall not exercise supervisory duties or authority.

Employees assigned in the capacity of Senior Police Officer shall receive premium pay in the amount of five percent (5.00%) of base salary per month.

Employees currently assigned to Detective Duty shall not be eligible for this Senior Police Officer premium pay.

Employees with a Master Police Officer designation, as described in the section below, may be assigned to serve as a Senior Police Officer. However, employees shall only receive one pay differential – either as a Master Police Officer or as a Senior Police Officer, not both.

Attached hereto is the revised Hollister Police Department Performance Evaluations (Exhibit B).

LM. Master Police Officer
Effective the first full pay period after ratification of this MOU, the Master Officer Program shall be introduced.

To be eligible for initial designation as Master Police Officer, Police Officers must:
a. Not be on probation or Special Evaluation
b. Have a minimum of five (5) years’ experience as a full-time Police Officer with the Hollister Police Department.
c. Have no “Below Standards” rating n their most recent evaluation. d. Have successfully completed one special assignment.
i. Special assignments that qualify for Master Police Officer designation include:

1. Detective

2. Mental Health Officer

3. Motor Officer

4. Canine Officer

5. School Resource Officer

6. 6. Any other regularly assigned specialty assignment as determined by the Chief of Police.
ii. A special assignment will be considered successfully completed after service in that assignment for at least two 12-month periods with no “Below Standards” evaluation ratings. The 12-month periods need not be consecutive.
e. Have obtained POST certification as a Field Training Officer and served in that capacity with a trainee for at least 20 weeks.

14 i. If an employee is unable to serve as a Filed Training Officer solely due to a lack of hiring or other staffing reasons, the Chief of Police may assign other training-related duties (i.e. briefing trainings, in-service training) or other projects to satisfy the requirement to actually work as a Field Training Officer.

Master Police Officers will be expected to provide mentoring to new and current employees, serve as Field Training Officers.

Master Police Officers assigned as Detectives shall receive special compensation in the amount of two percent (2.00%) of base salary. Master Police Officers not currently assigned as Detectives shall receive special compensation in the amount of five percent (5.00%) of base salary.

N. Detective Assignment
The Chief of Police may appoint Police Officers and Sergeants to assignment as Detective.

Those so appointed shall serve at the pleasure of the Chief of Police and shall not gain any property interest in the assignment. Those assigned as Detective shall be paid a premium pay of five percent (5%) of base salary per month.

O. Motorcycle Pay
Upon Management's assignment, an employee may be assigned to motorcycle duty. Those assigned shall be compensated a premium pay at three percent (3%) of base salary per month.

Employees assigned to motorcycle duty shall receive an annual stipend of $2,500 to cover all compensation associated with the time spent in an off-duty capacity for the routine daily storage and cleaning needs of their assigned vehicle and related equipment. However, this stipend shall be suspended and no payments shall be made during the term of this MOU (date agreement approved by City Council through FY 2025-2026June 30, 2026). The City shall remain responsible for the routine service (i.e. oil changes, etc.) and necessary repairs needed for all assigned vehicles. This payment shall be made the first full pay period after a member is assigned to motorcycle duty and annually thereafter.

Employees currently assigned to motorcycle duty shall receive a $2,500 stipend upon ratification of this MOU and annually thereafter.

The $2,500 stipend shall be considered full compensation for all overtime associated with the routine daily storage and cleaning needs of the City assigned vehicle.

P. Gang Enforcement Training Officer
The position of Gang Enforcement Training Officer has been eliminated. The functions previously performed by the Gang Enforcement Training Officer have been incorporated into the Special Investigations Unit within the Detective Division.

The premium pay of one point forty-four percent (1.44%) of base salary per month that was previously associated with the Gang Enforcement Training Officer assignment is discontinued effective with this MOU. Officers assigned to the Special Investigations Unit within the Detective Division shall be compensated according to the established pay provisions for detective assignments as outlined elsewhere in this MOU.

15 Any officer previously serving in the Gang Enforcement Training Officer assignment shall be reassigned in accordance with departmental operational needs and existing assignment procedures.The Chief of Police may appoint an officer to the assignment of Gang Enforcement Training Officer. An individual assigned by the Chief of Police shall serve in the assignment at the pleasure of the Chief of Police and shall not gain any property interest in the assignment. Those assigned as a Gang Enforcement Training Officer shall be paid a premium pay of one point forty-four percent (1.44%) of base salary per month while so assigned.

Q. Shift Differential
The City agrees to pay a premium pay shift differential of five percent (5.00%) of base salary per month for sworn personnel who work from 1800 hours to 0600 hours (one complete shift). This differential pay shall only be received when the primary shift assignment is from 1800 hours to 0600 hours. The City agrees to pay a premium pay shift differential of five percent (5.00%) of base salary per month for sworn personnel who work a “cover” or “relief” shift. If during the term of this M.O.U. the patrol work week/shift schedule is different than the current twelve (12) hour shift schedule, this Section will be reopened and a “Meet and Confer” will occur to discuss which hours of any new work week/shift will receive the shift differential pay.

The Chief of Police shall maintain complete and unilateral control to assign and move personnel assigned to these shifts, such that no personnel under these assi gnments shall retain the five percent (5.00%) shift differential pay if reassigned.

Any such reassignments shall not constitute disciplinary action, and shall not be appealable.

R. Retention Bonus Program
The City agrees to implement a retention bonus program that will prepay a five percent (5%) annual bonus to the Sworn members of the Association on the last pay period of December.

If an Association Member leaves within the year after receiving the bonus, that Member must reimburse the City a prorated share of that annual bonus.

S. Recruitment and Retention Measures

1. Recruitment Bonus
Entry Level/Academy Grad Action Bonus Amount Paid
Upon Hiring $3,000.00
Upon Completion of Probation (18 months) $4,000.00
Upon Completion of 1 Year After Probation Status Ends $5,000.00 Upon Completion of 2 Years After Probation Status Ends $6,000.00 Upon Completion of 3 Years After Probation Status Ends $7,000.00 Lateral Police Officer Action Bonus Amount Paid
Upon Hiring $5,000.00
Upon Completion of Probation (18 months) $5,000.00

16 Upon Completion of 1 Year After Probation Status Ends $10,000.00 Upon Completion of 2 Years After Probation Status Ends $10,000.00 Recruiter Bonus: $2,000.00 ($1,000.00 at hire and $1,000.00 at completion of probation). A recruiter is defined as a person whom referred, recruited and mentored the candidate through hiring process and probation.*Referral Bonus: should be considered for any City of Hollister employee that refers a candidate that gets hired by the Hollister Police Department. I recommend a referral bonus of $100-$200 for the City of Hollister empl
*** Any employee in the chain of hiring employees (HR employees, City Administration and Hollister Police Department Administration) would shall be exempt from collecting any bonus related to hiring of personnel.

2. Credit of up to 100 hours of Paid Time off (PTO) (sick leave or vacation employee's choice) determined by prior job position credit accrued, for any officer that possesses a Peace Officers Standard and Training (POST) basic certificate at the time of hire.

2. Lateral officers shall also accrue vacation time based on total time of service as a peace officer within the State of California.

3. These measures would not be retroactive.

ARTICLE 67. INSURANCE
A. CalPERS Medical

1. Retiree Insurance Benefit
The City shall pay Two Hundred Dollars ($200.00) per month towards medical insurance for Sworn Unit Retirees who have earned a regular CalPERS Service Retirement after fifteen (15) or more years of service to the City of Hollister as a Sworn Officer. This benefit will be paid until the Retiree is Medicare eligible, at which time the benefit will cease. It is the Retiree’s option as to which medical provider plan they use; either CalPERS or Blue Cross HMO. Retirees may choose to remain on the City’s plan or seek their own medical insurance, in which case the Two Hundred Dollars ($200.00) will be paid directly to the Retiree. This article will not apply to any new hires after November 1, 2017.

2. Description
The City of Hollister Flexible Benefits Plan/Cafeteria Plan (hereinafter “Plan") is available to full-time employees (hereinafter “Employees").

There will be three participation levels as referenced under Section [E]. Optional benefits are listed below. Once an election is made, it will remain in force until the next open enrollment period. A Third Party Administrator (T.P.A.) fee will be paid by the employees that participate in the Plan.

B. Health Insurance Options

17 The City shall provide employees with the choice of participating in the Public Employees' Medical and Hospital Care Act (PEMHCA) program offered by CalPERS.

C. IRS Code Section 125 Flexible Benefits/Cafeteria Plan

1. The City shall provide for unit members an IRS Code Section 125 Flexible Benefits/Cafeteria Plan in accordance with all applicable state and federal laws and regulations.

2. The City shall contribute towards the PEMHCA medical, dental and vision care plan amounts allocated in accordance with the City's IRS Code Section 125 Flexible Benefits/Cafeteria Plan as specified below.

3. The City shall allocate specified amounts of "Flex Credits" to the employee's flexible benefit account. These amounts shall consist of the following:

A. A. Beginning August 2024July 1, 2025, or after City Council approval of this MOU, whichever is later, the City will contribute the amount shown below for the months remaining in Plan Year 2024:

COVERAGE CITY CONTRIBUTION
Employee Only $1,342.94220.85
Employee Plus One $2,685.86441.69
Employee Plus Family $3,491.63174.21
B. For Plan Year 2025 the City will increase its monthly contribution by the actual increase in the PERS Platinum plan up to a maximum of 10%.

C.

B. An amount equivalent to theThe City will City’s contribution contribute towards dental insurance in the following amounts:. The required contribution for employees electing dependent coverage in accordance with Section [E] below shall be excluded from this total.

COVERAGE CITY CONTRIBUTION
Employee Only $49.80
Employee Plus One $100.63
Employee Plus Family $135.91

C. An amount equivalent to theThe City’s will contributeion towards vision insurance in the following amounts:. The required contribution for employees electing dependent coverage in accordance with Section [E] below shall be excluded from this total.

COVERAGE CITY CONTRIBUTION
Employee Only $14.15
Employee Plus One $30.29
Employee Plus Family $30.29
An amount equivalent to the City’s contribution towards dental insurance. The required contribution for employees electing dependent coverage in accordance with Section [E] below shall be excluded from this total.

An amount equivalent to the City’s contribution towards vision insurance. The required contribution for employees electing dependent coverage in accordance with Section [E] below shall be excluded from this

18 4. In the event that surplus Flex Credits are available, all Association Employees shall have the option to allocate such Flex Credits to one or more of the following:
a. Union Employees’ Flexible Spending Account.
b. Roth Individual Retirement Account (IRA).
c. ICMA or City-authorized 457 Deferred Compensation Plan.

If an Association Employee’s residual “Flex Credits” are reduced, the employee will have the responsibility to pay the contribution no longer covered by the Surplus Flex Credits.

5. Employees who waive either dental and/or vision coverage shall have the option to apply available flex credits towards the cost of any optional premium listed in the respective sections below. The cost of the optional premium not covered by available flex credits shall remain the employee’s responsibility.

6. Employees who elect to waive any or all health coverage shall be subject to the terms and provisions described under Section [J] below.

D. Terms for Health Care Participation
Participation and coverage in the medical, dental, and vision care plans shall be in accordance with the terms and conditions of the insurance carrier.

E. Health Care Contributions

1. Employee-only Premium
The City shall contribute towards the medical, dental, and vision insurance plans an amount equal to the employee-only premium at the time of adoption of this M.O.UMOU. for each member of the unit for Calendar Year 2022. The employee-only premium for medical insurance shall be in accordance with Section [C] above.

2. Employee Option for Dependent Coverage
Starting Calendar Year 2022, for thoseFor employees who elect the option for dependent coverage for medical, dental, and vision insurance plans, the City shall contribute monthly amounts equal to the employee plus one and employee plus family toward such dependent coverage in accordance with Section [C] above. This section does not affect the current coverage for Calendar year 2021.

3. This section does not affect the coverage year in effect at the time of City Council approval of this MOU.

F. Vision Insurance
The City shall provide a vision care insurance plan which is available to eligible unit members and qualified dependents during the term of this M.O.U.

The City shall offer vision care insurance for employees and qualified dependents as a pre - tax flexible benefit option. Participation and coverage shall be in accordance with the terms and conditions of the insurance carrier.

19 G. Dental Insurance
The City shall offer dental care insurance for employees and qualified dependents as a pre - tax flexible benefit option. Participation and coverage shall be in accordance with the terms and conditions of the insurance carrier.

H. Life Insurance
The City shall provide term life insurance in the amount equal to $50,000 for each member of the unit for the term of this M.O.U. Additional term life insurance may be purchased by the employee in increments of $10,000 up to a total of $250,000.

I. Long Term Disability Insurance
The City agrees to provide to all employees within this unit at City cost a Supplemental Long Term Disability Plan, coordinated with other existing benefits to provide no more than a thirty (30) day exclusion or elimination period; no less than a one-year benefit for accident or illness; and a minimum scheduled benefit of sixty-six percent (66%) or two-thirds (2/3) of gross salary to a maximum of $3,500.00 per month for the term of this M.O.U. The City in its sole discretion shall select the Supplemental Long Term Disability Plan carrier that meets these requirements.

J. Health Insurance Waiver Option

1. Employees within this bargaining unit who elect not to participate in the City's health care insurance program will be compensated in an amount as follows:
$535 Employee Only
$1,075 Employee plus one
$1,380 Employee plus family
The compensation will be based on the employer’s contribution towards the premiums for the City’'s health plan at the level corresponding to the employee’s verified coverage level (employee only, employee plus one dependent, or employee plus two or more dependents). To receive this benefit, employees must submit documentation demonstrating their enrollment in a qualified non-City health insurance plan at the applicable coverage level. This documentation must be provided at the time of waiver and during any subsequent verification periods as specified in Section [3] below. Upon verification of coverage, this cash amount will be paid as part of the employee’s bi- weekly payroll. in which the employee was participating (employee only, employee plus one dependent, employee plus two or more dependents) at the time of waiving City insurance coverage in accordance with Section [3] below. This cash amount will be paid as part of the employee's bi-weekly payroll.

2. Employees within this bargaining unit shall be eligible to elect not to participate in the City’s health care program only after participating under the same level of the City’s health care insurance plan for a minimum period of one year immediately preceding the election.

20 3. Employees within this bargaining unit electing not to participate in the City's health care insurance program must annually provide proof of medical insurance coverage and verify any dependents as if they were receiving coverage through the City in order to maintain payment under this waiver option.

4. In addition to the coverage options specified under Article 6. Insurance of the Memorandum of Understanding between the City of Hollister and Hollister Police Officers Association, the following optional health benefits shall be available to the employees of this bargaining unit.

K. Optional Health Benefits
Employees that have elected to participate in a City offered medical plan can also elect to participate in the optional benefits. If the employee has any surplus flex credits after making all elections required to participate in the medical insurance, the employee can use that surplus toward optional qualified insurance benefits or one or both of the pre-tax spending accounts. Employees that wish to participate in the optional benefits plan, but do not have any surplus credits, can elect to have pre-tax payroll deductions in an amount to cover the cost of their elections.

Employees may pay the premiums for the following benefits on a voluntary basis:
- Medical Insurance
- Dental Insurance
- Vision Insurance
- Group Term Insurance up to $50,000 for Employees only - Accidental Death and Dismemberment Insurance
- Short Term Disability
- Cancer Insurance
- Supplemental Health Insurance
- Vision or Dental Insurance
- Accidental Only Insurance
- Intensive Care Insurance
L. Flexible Spending Accounts (FSA's)
The City agrees to establish a pre-tax dependent care reimbursement account up to the maximum reimbursement allowed by law.

The City agrees to establish a pre-tax medical reimbursement account, up to the maximum reimbursement allowed by law.

M. Voluntary Life Insurance
The City shall offer a voluntary supplemental life insurance plan through the flexible benefits plan for pre-tax contributions by the employees. Participation and coverage shall be in accordance with the terms and conditions of the insurance carrier. Employees may also elect pre-tax payroll deductions to support other City sponsored voluntary supplemental insurance benefits.

21 N. Miscellaneous
The City of Hollister does not allow the employee to take the surplus credits in taxable cash.

For employees who elect not to participate in the group medical coverage offered by the City, the City will provide dental and vision coverage for the employee and his/her dependents at no cost to the employee.

ARTICLE 78. POST CERTIFICATES / EDUCATIONAL

INCENTIVE / PROFESSIONAL DEVELOPMENT INCENTIVES

A. POST Certificates – Sworn

1. Acknowledging the merits of POST Certifications, the City agrees to pay the following amounts in addition to base pay for unit members permanently filling the classification of Police Officer:
a. Intermediate P.O.S.T. Certificate - Three percent (3%) of base salary per month, or b. Advanced P.O.S.T. Certificate - Six percent (6%) of base salary per month.

2. The City agrees to pay the following amounts in the additionaddition to base pay for unit members permanently filling the classifications of Police Sergeant and Police Lieutenant:
a. Advanced P.O.S.T. Certificate – Six percent (6%) of base salary per month, or b. Supervisory P.O.S.T. Certificate – Seven percent (7%) of base salary per month.

3. Commencement of Payments
POST Certificate payments shall commence the pay period following submission of proof of completion to Human Resources. It is the employee's responsibility to provide these documents to Human Resources in a timely manner.

4. Eligibility
Employees can only receive POST Certificate pay when the minimum requirements of their job does not include they posses a certain POST Certificate. (Example: If a minimum requirement of a job includes possession of a POST Intermediate Certificate, that employee would not be eligible to receive a pay differential for meeting minimum qualifications of the job.)
B. Education Pay – All Unit Employees

1. Acknowledging the merits of continued education, the City agrees to pay the following amounts in addition to base pay:
a. BA or BS Degree – Two and one-half percent (2.5%) of base pay.

22 2. Commencement of Payments
Educational incentive payments shall commence the pay period following submission of proof of completion to Human Resources. It is the employee’s responsibility to provide these documents to Human Resources in a timely manner.

C. Professional Development Incentives - Non-Sworn

1. Non-sworn employees shall be eligible to receive a one-time incentive for obtaining certificates provided the employee has completed his/her probationary period. A Professional Development Incentive shall not be awarded if the certifications are a minimum requirement for the position.

Certificates must relate to the employee's current position or future lateral or promotional opportunities within the City.

Vocational Training, for purposes of this Section, is defined as a minimum of eight (8) hours of specific training in a career field which results in a certificate of completion. The minimum eight (8) hours shall be documented classroom time, or in the case of a correspondence program will be identified as the average length of time required to complete the program certification as documented by the certifying agency or institution.

A maximum of two (2) incentives per calendar year can be received by an employee. a. Professional Certificates - $2,500 Lump Sum:

Certified Public Accountant
Paralegal Certificate
b. Technical Certificates* - $2,000 Lump Sum:

Microsoft Office User Specialist (MOUS)
Evidence Technician Certification
Certified Code Enforcement Officer
c. Vocational Certificates* - $20.00 per hour, Lump Sum:
{Paid by average length of time required to complete course. Lump sum payment to be a minimum of $160.00 [eight (8) hours].}
Spreadsheet - Microsoft Excel
Word Processing - Microsoft WORD
Database - Microsoft Access
Presentation Graphics - Microsoft PowerPoint California POST Certified courses LEAWEB Online Tutorials
CA Association of Code Enforcement Officer Courses
* Additional courses/classes may be approved by the Chief of Police.

2. Professional Development Incentive payments shall commence on the next pay period following the issuance of the Degree and/or certification after submission to the Chief of Police.

ARTICLE 89. JOB RELATED DISABILTIESDISABILITIES AND THE

AMERICANS WITH DISABILITIES ACT

23 A. Job Related Disabilities
City agrees to comply with the applicable provisions of the Labor Code of the State of California for employees within this unit deemed disabled or temporarily disabled as a result and because of such job related injury which requires them to be absent from active City service.

B. Americans With Disabilities Act
The parties recognize that the City may be required to make accommodations in order to carry out its obligations under the Americans with Disabilities Act (ADA). Some of the accommodations may require actions which are contrary to the language or intent of existing provisions of this agreement. The parties agree that such accommodation relating to ADA shall not constitute a "past practice" or waiver by either party of its right to fully enforce such provisions in the future with regard to persons not subject to the protections of the ADA. The parties recognize that circumstances surrounding ADA compliance in individual cases may involve matters which are personal and require the utmost confidentiality. Specifics of an individual case may not be divulged by the City. Prior to taking action, the City shall notice the Association of a proposed accommodation, as it may apply to the working conditions of the unit, and shall give the Association opportunity for input. Actions taken by the City under this Article shall not be subject to the grievance procedure.

ARTICLE 910. UNIFORM ALLOWANCE AND SAFETY EQUIPMENT
A. Uniform Allowance
The City agrees to provide new hires attending the Academy all necessary uniforms. For all other new hires, the City agrees to provide two sets of uniforms upon hiring. If a unit member chooses to acquire any uniform items above this amount, that unit member shall pay out-of-pocket for those costs at no expense to the City.

The City also agrees to contribute forty-five dollars ($45.00) per pay period, for each unit member, to cover all ongoing uniform costs.

Unit members shall use this uniform allowance to regularly maintain and/or replace their uniforms as needed. Unit members are responsible for maintaining and replacing uniforms to meet the standards of the Police Chief.

B. Boot Allowance
The City agrees to provide each employee in the unit with an annual reimbursement up to three hundred dollars ($300.00) per year upon presentation of satisfactory proof-of- purchase. Reimbursement will be made upon presentation of satisfactory proof-of-purchase for boots or over-the-counter or prescription orthotics which are approved and authorized by City management. Used boots that were purchased in the prior four years are the property of the City and shall be returned to the City. Used boots that were purchased four or more years prior may be retained by the employee upon replacement.

Employees may use all or a portion of the boot allowance for necessary repairs of existing boots, including insole or outsole replacement, recrafting, or other repair

24 services. In no case shall the boot allowance for repairs and / or purchases exceed three hundred dollars ($300.00) per year.

C. Safety Equipment
The City agrees to continue to provide all necessary protective clothing and safety equipment for members in this unit. In addition, the City shall comply with all applicable State laws regarding damage and loss of uniforms and/or personal equipment. Personal protective vests will be replaced at City cost as per manufacturer's recommendations or repaired at City's option.

ARTICLE 101. GRIEVANCE PROCEDURES: SWORN PERSONNEL
This grievance procedure shall be the sole and exclusive procedure for resolving grievances filed by sworn employees covered by this M.O.U.

A. Definition
A grievance is a claimed violation, misapplication or misinterpretation of a specific provision of this agreement which adversely affects the grievant.

B. Stale Grievance
A grievance shall be void unless filed in writing within fifteen (15) calendar days from the date upon which the City is alleged to have misinterpreted or misapplied this agreement, or with fifteen
(15) calendar days from the time an employee might reasonably have been expected to have learned of the alleged misinterpretation or misapplication. Such discovery period shall not exceed one hundred eighty (180) days regardless of the date of discovery. In no event shall a grievance include a claim for money relief for more than the fifteen (15) day period plus such reasonable discovery period.

C. Informal Discussion with Employee's Supervisor
Before proceeding to the formal grievance procedure, an employee shall discuss his/her grievance with his/her immediate supervisor in private and attempt to work out a satisfactory solution. Any solution reached at this level must be confirmed in writing by the Human Resources Officer to assure compliance with this agreement before it has any binding effect.

D. Formal Written Grievance to Employee's Supervisor
If the employee chooses to formally pursue his/her grievance, he/she or his/her representative shall present the written grievance to his/her immediate supervisor with in five (5) working days after the date upon which the grieving employee informally discusses the grievance with the supervisor. (In the event a group grievance is formally submitted by the recognized employee organization, its initial submission will be t o the Department Head and subsequent steps will be followed as outlined in this Section.) The formal written grievance shall specify the provisions of this M.O.U. alleged to have been misinterpreted or misapplied; the remedy sought; and such other specific dates, times, places and persons and other facts necessary to derive a clear understanding of the matter being grieved. The immediate supervisor shall return a copy of the written grievance to the employee with the

25 supervisor's answer thereto in writing within five (5) working days from receipt of the supervisor's answer within which to file an appeal to the next level.

E. Grievance to Department Head/City Manager
The Department Head or the City Manager, if the Department Head was the grievant's immediate supervisor, shall have seven (7) working days in which to review and answer the grievance in writing. Unless waived by mutual agreement of the employee or his/her representative and the Department Head or City Manager, a meeting is required at this level and the employee and his/her representative shall have the right to be present and participate in such a meeting. The time limits at this level may be extended by mutual agreement between the Department Head or City Manager and the employee or his/her representative.

F. Waiver of Appeal Steps
If the grievance is not resolved after the immediate supervisor has answered it in writing, the grievant(s) and the Department Head may, by mutual agreement, waive review of the grievance at Step E and proceed to present the grievance to the City Manager.

G. Advisory Fact Finding of Grievances
In the event the grievance is not resolved by the City Manager, the recognized employee organization may within fifteen (15) calendar days after receipt of the decision of the City Manager, request that the grievance be heard by a Fact Finder.

H. Selection of a Fact Finder
The Fact Finder shall be selected by mutual agreement between the City and the Association. If the parties are unable to agree on the selection of a Fact Finder, they shall jointly request the State Mediation and Conciliation Service to submit a list of five (5) qualified Fact Finders. The City and the grievant, or his/her representative, shall then alternately strike names from the list until only one name remains, and that person shall serve as Fact Finder.

I. Duty of a Fact Finder

1. Except when an agreed statement of facts is submitted by the parties, it shall be the duty of the Fact Finder to hear and consider evidence submitted by the parties and to thereafter make written findings of fact and a proposed disposition of the grievance which shall be advisory in nature.

2. The proposed disposition shall be based solely on the interpretation of the applicable provisions of the M.O.U. and other Personnel Rules if applicable to the grievance, and he/she shall not add to, subtract from, modify or disregard any of the terms or provisions of the M.O.U. or such Rules.

J. Payment of Costs
Each party to a hearing before a Fact Finder shall bear its own expenses in connection therewith. All fees and expenses of the Fact Finder shall be borne one-half by the City and one-half by the grievant. If the City does not implement the proposed disposition of the

26 grievance made by the Fact Finder, the City shall pay all fees and expenses of the Fact Finder.

K. Effect of Failure of Timely Action
Failure of the employee(s) to file an appeal within the required time period at any level shall constitute an abandonment of the grievance. Failure of the City to respond within the time limit at any step shall result in an automatic advancement of the grievance to the next step.

L. Continued Discussions
The City shall continue the current sick leave and bereavement leave rules as defined in this Article for the term of this M.O.U.

A. Bereavement Leave
Bereavement leave is a separate paid leave which is available to all employees at the time of death or funeral of a member of the employee's immediate family as defined below:

Wives/Husbands Grandparent(s)
Grandparent(s)-in-law Children
Grandchildren Legal guardians
Fathers Mothers-in-law
Aunts Mothers
Fathers-in-law Uncles
Brothers Sisters-in-law
Nieces Sisters
Brothers-in-law Nephews
B. Family Sick Leave - Within Existing Benefit
An employee may be granted up to a total of forty (40) hours of sick leave in a twelve (12) month period for the purpose of caring for a spouse, parent, or children as defined below.

The City Manager can make exceptions to the below upon request of an individual. This exception by the City Manager can include domestic partners.

1. Spouse means a husband or wife as defined or recognized under State law for purposes of marriage in the State where the employee resides, including common law marriage in States where it is recognized.

2. Parent means a biological parent or an individual who stands or stood in loco parentis to an employee when the employee was a son or daughter as defined in (3.) below. This term does not include parents "in law".

3. Son or daughter means a biological, adopted, or foster child, a stepchild, a legal ward, or a child of a person standing in loco parentis, who is either under age 18, or age 18 or older and “Incapable of Self-Care because of a Mental or Physical Disability.” a. “Incapable of Self-Care” means that the individual requires active assistance or supervision to provide daily self-care in three (3) or more of the "activities of daily living"' (ADLs) or "instrumental activities of daily living" (IADLs). Activities of daily living include adaptive activities such as caring appropriately for one's grooming

27 and hygiene, bathing, dressing and eating. Instrumental activities of daily living include cooking, cleaning, shopping, taking public transportation, paying bills, maintaining a residence, using telephones and directories, using a post office, etc. b. “Physical or Mental Disability” means a physical or mental impairment that substantially limits one or more of the major life activities of an individual.

Regulations at 29 CFR Sec. 1630.2(h), (i), and (j), issued by the Equal Employment Opportunity Commission under the Americans With Disabilities Act (ADA), 42 U.S.C. 12101 et seq., define these terms.
c. Persons who are "In Loco Parentis" include those with day-to-day responsibilities to care for and financially support a child or, in the case of an employee, who had such responsibility for the employee when the employee was a child. A biological or legal relationship is not necessary.
d. For purposes of confirmation of family relationship, the employer may require the employee giving notice of the need for leave to provide reasonable documentation or statement of family relationship. This documentation may take the form of a simple statement from the employee, or a child's birth certificate, a court document, etc. The employer is entitled to examine documentation such as a birth certificate, etc., but the employee is entitled to the return of the official document submitted for this purpose.

ARTICLE 123. LAYOFF
The City shall have the sole right to determine which class(es) shall be subject to layoff.

A. Order Of Layoff

1. The order of layoff of employees within a class or classes subject to layoff, shall be:
a. Provisional or Temporary Employees
b. Part-time Employees
c. Probationary Employees
d. Permanent Employees

2. Within each of the first three (3) categories, the order of lay-off shall be at the discretion of the Appointing Authority. Order of layoff of probationary and permanent employees shall be according to seniority with the employee(s) having lowest seniority to be laid off first. Among employees with equal seniority, the order of layoff shall be determined by the Appointing Authority.

B. Seniority Determination

1. Each employee shall receive one (1) point per full month of service in the classification the employee is working at the time a layoff is being imposed. In addition, the employee shall receive one-half (1/2) of a point per full month of service in any other unit classification, which the employee has worked and one-quarter (1/4) of a point per full month of current services in any non-bargaining unit classification. The total of such points shall determine the employee's seniority.

28 2. Employees subject to layoff may first displace employees of lower seniority in any comparable classification, as determined by the City Manager. As a second alternative to layoff, employees subject to layoff may take a voluntary demotion to any lower classification within the same division of the unit in which the employee had prior permanent status, provided a vacancy exists, or the demoted employee has higher seniority than an employee working in that classification. As a third alternative to layoff, an employee subject to layoff may take voluntary demotion to a vacant position in a lower classification provided the employee can, through a non-competitive examination, establish proof to the satisfaction of the appointing authority that he/she is capable of performing the job.

3. In the event the demoted employee in all the above alternatives has equal seniority with the least senior employee working in the lower classification, the employee to be laid off shall be determined by total seniority with the unit. If such unit seniority is also equal, the employee to be laid off shall be determined by the appointing authority.

C. Re-employment
Employees laid off or demoted in lieu of layoff shall have a priority right of return to their prior class or to any lower class in the same or comparable classification series. This right shall remain effective for two (2) years from the date of demotion or separation from the service.

The only exception being that any individuals that have been separated from the City will have to meet the current medical and background requirements.

ARTICLE 134. MISCELLANEOUS
A. Personnel Notices
Police Department management shall notice all officers of any intra departmental promotional possibilities and exams thereto at least thirty (30) days in advance of any exam or record review leading to such promotion.

B. Tuition Aid/Reimbursement and Tuition Reimbursement Advancement Program “Tuition Aid” is defined as a full or partial payment or reimbursement of registration fees and the minimum requirement of tests for specialized individual academic training which is related to the employee's current job or which prepares an employee for a promotional opportunity within City service. Texts purchased for training by the City will become the City's property upon completion of the training. The individual will have the option of purchasing the texts from the City.

1. Tuition aid for specialized training shall be made to the employee only upon evidence of completion of the training. In those instances, where it is desirable because of the nature of the training to advance tuition aid, a Department Head may request payment of tuition aid prior to the training.

2. Tuition aid for academic training shall be made to the employee only upon evidence of satisfactory completion of the training. Satisfactory completion will be considered a grade of “C” or better, or a grade of pass in a pass/fail grading system.

3. The following procedure shall apply for obtaining tuition aid.

29 a. Employees who desire tuition aid for specialized individual training or academic training shall submit their requests to their department head. b. Requests will be reviewed by the Department Head and forwarded with recommendation to the Human Resources Officer for authorization. Requests for aid and costs shall be processed within the administrative section of the department's budget. Prior authorization of the Human Resources Officer must be obtained before the training starts in order for the employee to qualify for the tuition aid. Employees will be required to pay the tuition costs themselves, prior to the course, but will be reimbursed if the course is authorized and successfully completed as provided for herein. When the training is completed, evidence of satisfactory completion of the training must be submitted to the Human Resources Officer for the purpose of obtaining reimbursement.
c. An employee being subsidized by another agency, either governmental or private, shall receive tuition aid only to the extent not reimbursed by such other agency.

4. The City will pay a maximum of Three Thousand Five Hundred Dollars ($3,500.00) per fiscal year to any eligible unit member that meets the above listed criteria for tuition aid.

5. A Tuition Reimbursement Advancement Program would allow police personnel who are in good standing, have completed their probationary period and has received approval form their supervisor to have amounts in excess of the Three Thousand Five Hundred Dollars $3,500 in one year.

The program would require the employee to enter into an employment contract with the city. The contract would specify how many years of advancement would be provided to the employee and the prorated amount of years the employee must stay employed. If the employee leaves employment for any reason, that employee would be required to refund the remaining amount of the prorated funds.

Example: an employee has tuition and book cost of (Seven Thousand Dollars) $7,000.00 to finish his/her Bachelor’s degree. The employee enters into a contract and the fund are paid in advance to the employee or school. However, (Seven Thousand Dollars) $7,000.00 is equivalent to (two) 2 years of reimbursement. That would require the employee to remain an employee for two years. If the officer leaves employment after one year, that individual would be required to reimburse the city for the last year of tuition reimbursement that had been advanced.

C. Vacation Accrual And Vacation Allowance

1. The City agrees to provide vacation leave accrual for each represented unit member as follows:

Years of Service Annual Vacation
Accrual
1st through completion of 3rd 12 Days
4th through completion of 7th 17 Days
8th through completion of 15th 22 Days
16th through completion of 20th 24 Days
beginning of 21st Year 27 Days

30 2. Upon prior written approval by the City Manager, vacation accrual beyond two hundred eighty (280) hours may occur.

3. Unit Members may cash out vacation leave hours in increments of ten (10) hours as long as it has been budgeted and must have the City Manager’s Approval. Compensation for vacation leave cashed out will be made at the employee’s rate of pay at the time of cash out. Request for payment of vacation time shall be made in writing to the Department of Administrative Services at least thirty (30) days in advance.

Payments of cashed-out vacation leave will be made on the first full pay day which follows the end of the thirty (30) day advance. This payment will be made in the regular payroll check issued for that pay period.

4. Effective upon council approval of this agreement, lateral officers shall also accrue vacation time based on total time of service as a full time peace officer within the State of California. The City may approve, on a case by case basis, sworn peace officer service at the Federal level or out-of-state. This section may increase a current employees accrual rate going forward and will not result in any adjustment to previously accrued hours.

4. Effective upon the signing of this Agreement, for recruiting purposes only, based upon a new employee’s previous years of service as a Peace Officer with the Agency they just left, the new employee may receive, at the time of hire, a vacation accrual rate higher than the City’s beginning accrual rate of six point six-seven (6.67) hours per month, or three point zero eight (3.08) hours per pay period. The higher accrual rate will be in accordance with the City’s current Annual Vacation Accrual Schedule.

The City shall continue to provide the CalPERS Section 20965 “Credit For Unused Sick Leave” benefit for Police - Safety members as recognized by PERS, for the term of this agreement.

E. Sick Leave Conversion To Cash
Eligible unit employees may convert a percentage of accrued, unused sick leave to cash at death or retirement from City employment. The provisions for this policy are as follows:

1. Employees of this unit may not "cash out" or be compensated for any of the first two hundred forty (240) hours of sick leave accrued.

2. Any current employee of this unit having completed ten (10) years of continuous service with the City and who retires from City service by filing for Service Retirement with CalPERS, will be compensated for fifty percent (50%) of accrued, unused sick leave in excess of two hundred forty (240) hours at the employee's hourly rate of pay at the time of retirement from City service.

The surviving spouse, beneficiary(s), dependent(s) or estate of any current employee of this unit who has completed ten (10) years of continuous service with the City and dies while employed by the City prior to retirement, will be compensated for fifty percent (50%) of accrued, unused sick leave in excess of two hundred forty (240) hours at the employee's hourly rate of pay at the time of death.

Any current employee of this unit having completed ten (10) years of continuous service with the City and having an unused sick leave accrual balance exceeding five hundred

31 (500) hours may, at their option, "cash out" up to a maximum of ninety-six (96) hours (12 days) of unused sick leave annually as long as the "cashed out" hours do not diminish the unused sick leave accrual balance to an amount less than five hundred (500) hours.

Compensation for unused, accrued sick leave will be made at the employee's rate of pay at the time of "cash out". Requests for payment of unused sick leave as described herein, shall be made in writing to the Finance Department at least thirty (30) days in advance of June 1st and December 1st of each year.

Payments of "cashed out" unused sick leave will be made on the first pay day which follows June 1st and December 1st of each year.

F. Probationary Period

1. All new sworn-unit members that are hired after the adoption of this M.O.U. will serve an eighteen (18) month probationary period, which will include the time spent at the Police Academy.

2. All members who leave the City's employment and return to the City within one (1) year (364 calendar days) will be placed on a three (3) month probationary period as long as the employee:
a. Left the City of Hollister in good standing; and
b. Achieved at least “satisfactory” on their last evaluation with the City of Hollister.

G. Separation in Good-Standing
A sworn employee who separates in good-standing from the City of Hollister Police Department, and within one (1) year submits an application to the City, will not be required to submit to an oral board as part of the application process. However, the appli cant will remain subject to P.O.S.T. regulations.

H. Recruitment Incentives for Sworn Personnel
The following are recruitment incentives for Sworn Personnel:

1. New sworn employees will receive an advance of forty (40) hours of sick leave effective the date of employment. Accrual of future sick leave will begin six (6) months from the date of hire.

2. A One Thousand Dollars ($1,000) moving allowance will be provided to new employees who, when hired, lived one hundred (100) miles or more from the Hollister City Limits and who, upon successfully completing probation, have moved and are current residents of San Benito County. Employees who qualify must provide written proof of their primary residency within San Benito County.

I. Work Schedules

1. Non-Sworn Unit Classifications
a. Flexible Work Schedules:

32 Non-sworn members may work flexible work schedules (i.e., 4/10, 9/80) when feasible. It is agreed that implementation of flexible work schedules shall be evaluated on a work unit basis, and will only be approved in those units where flexible work schedules can be implemented without reducing service levels and cost effectiveness. A change to a flexible work schedule must be approved by the member's supervisor and the Chief of Police.
b. Temporary Flexible Schedule:

Non-sworn members may request to temporarily flex their normal work schedule or workday (i.e., an earlier start to and/or end of the workday, doctor appointments, child care needs, etc.) with the approval of their supervisor.

2. Sworn Unit Classifications
a. Three, Four Twelve (3/12, 4/12) work schedule
The work schedule for sworn personnel assigned to the “day or “night” shift shall be three 12 hour shifts one week of the pay period, and four 12 hour shifts the other week of the pay period.
b. Four-Ten (4/10) Work Schedule

The work schedule for personnel assigned to specialty positions shall be the Four Ten (4/10) schedule.

c. For the 2025-2026 school year, personnel assigned to the School Resource Officer position(s) shall work a Five-Eight (5/8) schedule consisting of five eight-hour shifts per week, aligned with the academic calendar and school operational requirements.

J. Police Funeral Attendance
Any Member of the Association may attend a formal police funeral in an on-duty status within a two hundred fifty (250) mile radius of the City of Hollister. This means that the Member may attend in uniform and travel in an official vehicle with Chief of Police approval.

The Police Chief or City Manager may authorize attendance at a formal police funeral exceeding these parameters on a case-by-case basis.

K. New Employee Orientation
During New Employee Orientation, the bargaining unit will be allowed a total of thirty (30) minutes at the end of the orientation to provide a presentation when new employees of this unit are present and for those who wish to stay.

L. Automatic Payroll Deposit
All new unit members of the bargaining unit shall enroll in the automatic payroll deposit program at the time of their employment with the City or at the time of promotion to this unit.

ARTICLE 145. MAINTENANCE OF OPERATIONS
The Association agrees that during the term of this M.O.U. and for the period of time necessary for the meet and confer process to conclude a successor M.O.U., neither the Association, nor

33 any representative acting on its behalf, will cause, authorize, engage in, condone or sanction a strike, sick-in, work stoppage, slow down, picketing (other than informational picketing on the employees' own time), concerted of individual failure to report for duty, unauthorized absence, including compliance with a request of another unit's labor organization to engage in or honor such activities against the City, or any activity by any other euphemism known which results in less than the full and faithful performance of any duties of employment.

If the City determines that the Association has engaged in any activity mentioned above, the City may order the forfeiture of all rights and privileges, or any portion thereof, of the Association.

If the City determines that an employee has engaged in any activity above, the employee may be subject to disciplinary action up to and including discharge from City service.

ARTICLE 156. PREVAILING M.O.U.

In the event of a conflict between a specific provision of this M.O.U. and a written rule, regulation, or resolution of the City or any of its divisions, the terms of the M.O.U. shall prevail and said written rule, regulation, or resolution shall be physically amended to conform to the specific provisions of this M.O.U.

ARTICLE 167. HOLIDAYS AND HOLIDAY PAY

1. Sworn Unit Classifications
Compensation equal to seventeen days (136.00 hours) shall be made to sworn personnel in semi-annual payments payable on the first pay day which follows June 1st and Decemb er 1st of each year. Sworn personnel may elect to have a portion or all of these hours credited to their compensatory time balance in lieu of payment.

2. Non-Sworn Unit Classifications
Non-sworn personnel shall have the same holiday schedule as employees in the miscellaneous employees bargaining unit.
a. Holiday Schedule
The City provides the following paid holidays:

New Year’s Day January 1
Martin Luther King, Jr. Third Monday in January
President’s Day Third Monday in February
Cesar Chavez Day March 31
Memorial Day Last Monday in May
Juneteenth June 19
Independence Day July 4
Labor Day First Monday in September
Veteran’s Day November 11
Thanksgiving Day Fourth Thursday in November
Friday after Thanksgiving Day after Thanksgiving
Christmas Eve – Half Day December 24

34 Christmas Day December 25
If one of the holiday listed above falls on a Sunday, then it shall be observed on the following Monday. If one of the holidays listed above falls on a Saturday, then it shall be observed on the previous Friday.

Every non-sworn employee is also entitled to six (6) floating holidays per Fiscal Year.

ARTICLE 178. DRUG FREE WORKPLACE POLICY
The City's Drug Free Workplace Policy, City Personnel Rule 2.05, adopted by Resolution 92- 116 (August 3rd, 1992), is incorporated by reference into this Memorandum of Understanding.

ARTICLE 189. SAVINGS CLAUSE
If any Article or Section of this M.O.U. should be found invalid, unlawful or unenforceable by reason of any existing or subsequent enacted legislation or by judicial authority, all other Articles and Sections of this M.O.U. shall remain in full force and effect for the duration of this M.O.U. In the event of invalidation of any Article or Section, the City and the Association agree to meet within thirty (30) days for the purpose of meeting and conferring upon said Article or Section.

ARTICLE 1920. UNION BUSINESS
Up to five (5) elected representatives of the Association shall be granted a maximum of three (3) days leave each during the fiscal year based upon need without loss of pa y for Union Business to include but not be limited to attendance at conventions, conferences, and seminars. The release from duty shall be at the discretion of the City so as not to adversely affect staffing schedules.

ARTICLE 201. TERM
The term of this Memorandum of Understanding shall commence on July 1, 2024 2025 and shall expire on June 30, 20252026, unless otherwise agreed to by both parties. The signatures to this agreement may be executed in counterparts.

City of Hollister Hollister Police Officers Association (HPOA)

David Mirrione, City Manager Bryce Morgan, HPOA President

Robert Lomeli, City Negotiator Christopher Wells, HPOA Negotiator

35 Aurelio Melgoza, HPOA Negotiator

Alyssa Carrillo, HPOA Negotiator

Susana Canales, HPOA Negotiator

Joe Higby, HPOA Negotiator

STAFF REPORT

HOLLISTER CITY COUNCIL
MEETING DATE: September 15, 2025
REPORT # City Manager-2025-46

AGENDA ITEM: HOLLISTER INDEPENDENCE RALLY AD HOC COMMITTEE

DEPARTMENT: City Manager
DEPARTMENT HEAD: David Mirrione, City Manager
STAFF CONTACT: David Mirrione, City Manager

RECOMMENDED ACTION: Sunset the 2025 Hollister Independence Rally Council Ad Hoc Committee, form a 2026 Hollister Independence Rally Council Ad Hoc Committee, and appoint Mayor Stephens and Councilmember Resendiz to se rve on the 2026 Committee.

DISCUSSION: At the September 2, 2025 regular City Council meeting, the City Council directed staff to return to a future City Council meeting with an action to form a 2026 Independence Rally Ad Hoc Committee. The 2026 Hollister Independence Rally Ad Hoc Committee will provide input from various stakeholders, including staff, volunteers, and community representatives, for a motorcycle rally in Hollister on July 3-4, 2026. The 2026 Independence Rally Ad Hoc Committee would be in place for a period of one year from the date of its formation and could be extended if needed.

Per Mayor Stephens’s direction, Mayor Stephens and Councilmember Resendiz are appointed to serve on the 2026 Hollister Independence Rally Ad Hoc Committee.

Brown Act definition of an Ad Hoc Committee:

The Brown Act does not apply to ad hoc committees consisting solely of less than a quorum of the legislative body, provided they are composed solely of members of the legislative body and provided that these ad hoc committees do not have some “continuing subject matter jurisdiction,” and do not have a meeting schedule fixed by formal action of a legislative body. Ad hoc committees generally serve only a limited or single purpose, they are not perpetual, and they are dissolved when their specific task is com pleted.

FISCAL IMPACT: There is no significant fiscal impact anticipated at this time. Any minor administrative costs associated with the committee (e.g., meeting supplies, staff time) will be absorbed into the existing departmental budget .

PREVIOUS COUNCIL OR COMMISSION ACTION: At the September 2, 2025 City Council regular meeting, the City Council directed staff to return this item.

CEQA: N/A

ATTACHMENTS: None.

STAFF REPORT

HOLLISTER CITY COUNCIL
MEETING DATE: September 15, 2025
REPORT # City Manager-2025-47

AGENDA ITEM: A RESOLUTION APPROVING A SUPPLEMENTAL
APPROPRIATION FOR SANTA CRUZ REGIONAL 911 DISPATCH SERVICES

DEPARTMENT: City Manager
DEPARTMENT HEAD: David Mirrione, City Manager
STAFF CONTACT: David Mirrione

RECOMMENDED ACTION: Adopt a resolution approving a supplemental appropriation in the amount of $97,133 from Fund 218, $97,133 from Fund 221, and $97,134 from Fund 713 for dispatch services in Fiscal Year 2025-26.

DISCUSSION: On August 18, 2025, the City Council approved a three -year agreement with Santa Cruz Regional (SCR911) in the amount of $1,410,511 for Fiscal Year 2025-

26. At the time the contract was approved, the City’s adopted budget was not adjusted to reflect this obligation. To fully fund the current year’s contractual costs, a supplemental budget appropriation of $291,400 is now required. This adjustment ensures that sufficient appropriations are in place to meet the City’s financial commitment under the agreement.

FISCAL IMPACT: Reduction of available Fund Balance of $97,133 in Fund 218, a reduction of available Fund Balance of $97,133 in Fund 221, and a reduction of available Fund Balance of $97,134 in Fund 713.

PREVIOUS COUNCIL OR COMMISSION ACTION: August 18, 2025: City Council approved three-year agreement with SCR911 for dispatching services.

CEQA: N/A

ATTACHMENTS:

1. Resolution

2. Budget Adjustment Form

RESOLUTION NO. 2025-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HOLLISTER

APPROVING A SUPPLEMENTAL APPROPRIATION IN THE AMOUNT
OF $97,133 FROM FUND 218, $97,133 FROM FUND 221, AND $97,134 FROM FUND 713 FOR SANTA CRUZ REGIONAL 911 DISPATCH
SERVICES IN FISCAL YEAR 2025-26

WHEREAS, on August 18. 2025, the City Council approved a three-year agreement with Santa Cruz Regional (SCR911) in the amount of $1,410,511 for Fiscal Year 2025-26; and

WHEREAS, to fully fund the current year’s contractual costs, a supplemental budget appropriation of $291,400 is required; and

WHEREAS, this adjustment ensures that sufficient appropriations are in place to meet the City’s financial commitment under the agreement.

NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Hollister approves a supplemental appropriation in the amount of $97,133 from Fund 218, $97,133 from Fund 221, and $97,134 from Fund 713 for dispatch services in Fiscal Year 2025-26.

PASSED AND ADOPTED, by the City Council of the City of Hollister at a regular meeting held on September 15, 2025, by the following vote:

AYES:

NOES:

ABSTAINED:

ABSENT:

Roxanne Stephens, Mayor

ATTEST: APPROVED AS TO FORM:

Lozano Smith Attorneys at Law

____
Jennifer Woodworth, MMC, City Clerk Mary F. Lerner, City Attorney

Resolution No. 2025-XX

I, Jennifer Woodworth, MMC, City Clerk of the City of Hollister, do hereby certify that the attached Resolution No. 2025-XX is an original resolution, or true and correct copy of a City resolution, duly adopted by the Council of the City of Hollister at a regular meeting held on September 15, 2025 at which meeting a quorum was present.

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Hollister on September 15, 2025.

Jennifer Woodworth, MMC
City Clerk of the City of Hollister

STAFF REPORT

HOLLISTER CITY COUNCIL
MEETING DATE: September 15, 2025
REPORT # City Manager-2025-49

AGENDA ITEM: A RESOLUTION TO TERMINATE THE EXISTING CONTRACT AND

AUTHORIZE THE CITY MANAGER TO FINALIZE NEGOTIATIONS AND EXECUTE

A NEW AGREEMENT WITH CALIFORNIA CONSULTING, INC FOR GRANT

WRITING SERVICES

DEPARTMENT: City Manager
DEPARTMENT HEAD: David Mirrione, City Manager
STAFF CONTACT: David Mirrione, City Manager

RECOMMENDED ACTION: Adopt a resolution to approve the termination of the existing contract effective September 30, 2025, and authorize the City Manager to finalize negotiations and execute a new agreement with California Consulting, Inc. for Grant Writing Services utilizing an on-call rate model beginning October 1, 2025.

DISCUSSION: On June 6, 2022, City Council approved a contract with California Consulting, Inc. for Grant Writing Services with a contract effective date of May 11, 2022.

The agreement provided to the City the following:

Section 1 – Duties of Consultant -

a. Grant research, targeted grant research on projects specifically identified by the city, identification of funding opportunities, and grant writing services at direction of the city.
b. Offering city general advise on matters involving funding mechanisms, grants research, identification, and writing.
c. Perform post-grant award administration on the grants which are awarded to the city, including the filing of required documents by the proscribed deadlines set by the awarding entity.

Section 3 – Term of the Agreement
The effective date of the Agreement is May 11, 2022 and shall continue on a month -to- month basis allowing either party to discuss new terms at any time.

In an effort to better align costs with actual service usage and provide greater flexibility in managing departmental budgets, staff recommends terminating the current agreement with California Consulting. Additionally, staff recommends that the City Council authorize the City Manager to finalize negotiations and execute a new agreement with California Consulting, Inc. for Grant Writing Services utilizing an on -call rate model beginning October 1, 2025.

FISCAL IMPACT: The current agreement was based on a fixed monthly amount of $4,950.00. Under the new hourly services model, charges will be based on actual time worked at an hourly rate of $150.00/hour. City departments will be responsible for ensuring that sufficient funds are available within their approved fiscal year budgets to

cover the cost of consulting services.

PREVIOUS COUNCIL OR COMMISSION ACTION: At a Regular City Council meeting on June 6th, 2022, council authorized the City Manager to execute a contract with California Consulting, Inc. for Grant Program Management Services with Resolution number 2022-110.

CEQA: N/A

ATTACHMENTS:

1. Resolution

2. Resolution number 2022-110

3. Grant Writing Services Agreement – May 11, 2022

RESOLUTION NO. 2025-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HOLLISTER

TO TERMINATE EXISTING CONTRACT AND AUTHORIZE THE CITY

MANAGER TO FINALIZE NEGOTIATIONS AND EXECUTE AN

AGREEMENT WITH CALIFORNIA CONSULTING, INC FOR ON-CALL

GRANT WRITING SERVICES

WHEREAS, the city entered into an agreement on June 6, 2022, with California Consulting, Inc. for Grant Writing Services with an effective date of May 11, 2022; and

WHEREAS, the Term of the Agreement allows either party to discuss new terms at any time; and

WHEREAS, the city has now decided to terminate the existing contract as of September 30th, 2025, and enter negotiations for a new contract effective October 1st, 2025, and transition from a fixed monthly fee structure to an hourly rate model; and

WHEREAS, the change is intended to better align costs with actual service usage and provide greater flexibly in managing departmental budgets; and

WHEREAS, effective October 1, 2025, consulting services will be billed at a rate of $150.00 per hour, with all other terms and conditions of the original agreement remaining in full force and effect.

NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Hollister hereby authorizes the City Manager to terminate the existing contract as of September 30th, 2025, and finalize negotiations and execute a new contract agreement effective October 1st, 2025, with California Consulting, Inc. for Grant Writing Services on an on-call basis.

Resolution No. 2025-XX

PASSED AND ADOPTED, by the City Council of the City of Hollister at a regular meeting held on September 15, 2025, by the following vote:

AYES:

NOES:

ABSTAINED:

ABSENT:

Roxanne Stephens, Mayor

ATTEST: APPROVED AS TO FORM:

Lozano Smith Attorneys at Law

____
Jennifer Woodworth, MMC, City Clerk Mary F. Lerner, City Attorney

I, Jennifer Woodworth, MMC, City Clerk of the City of Hollister, do hereby certify that the attached Resolution No. 2025-XX is an original resolution, or true and correct copy of a City resolution, duly adopted by the Council of the City of Hollister at a regular meeting held on September 15, 2025 at which meeting a quorum was present.

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Hollister on September 15, 2025.

Jennifer Woodworth, MMC
City Clerk of the City of Hollister

STAFF REPORT

HOLLISTER CITY COUNCIL
MEETING DATE: September 15, 2025
REPORT # Fire-2025-25

AGENDA ITEM: A RESOLUTION ALLOCATING $50,000 FROM FIRE IMPACT FEES TO IMPROVE A NEW TYPE 3 ENGINE WITH AN AUXILIARY PUMP FOR USE

DURING FIREFIGHTING OPERATIONS

DEPARTMENT: Fire
DEPARTMENT HEAD: Jonathan Goulding, Fire Chief
STAFF CONTACT: Jonathan Goudling, Fire Chief

RECOMMENDED ACTION: Adopt a resolution approving an allocation of $50,000 from Fire Impact Fee funds for the purchase and installation of an auxiliary pump on the new Type 3 engine to ensure its safe and efficient operation within our service area.

DISCUSSION: In 2024, Hollister Fire took delivery of a new Type 3 engine designed for wildland and rural firefighting. Since delivery, testing in our local response areas has shown that the engine experiences significant water pressure fluctuations when operating on hilly terrain. Specifically, pressure surges when ascending and pressure drops when descending. These fluctuations pose safety concerns and compromise the engine’s ability to deliver a consistent water supply. As a result, the engine has not yet been placed into active service.

The addition of an auxiliary pump will address these issues by maintaining steady water pressure regardless of elevation changes. This retrofit will ensure the engine can be safely deployed in our hilly terrain, maximizing the City’s investment and improving firefighting readiness.

The Type 3 engine was purchased to expand the City’s fire fleet to better serve the expanding community. The auxiliary pump is a necessary improvement to ensure the Type 3 engine operates at full capacity.

To procure the appropriate equipment and installation services, bids were initially solicited from four vendors:

 Golden State EVS (Sacramento) declined to bid, as they are a Pierce affiliate and do not work on Rosenbauer engines.
 High Tech EVS (Oakdale) requested that the apparatus be brought into their facility for inspection before determining bid eligibility.  Westmark (Ceres) requested equipment dimensions before determining if they could provide a quote.
 Burton’s Fire (Modesto), the authorized Rosenbauer repair facility, was ultimately selected. Burton’s had facilitated the original equipment purchase and, as the manufacturer’s authorized service provider, their involvement ensures compatibility and minimizes the risk of warranty issues.

FISCAL IMPACT: Reduction of Fire Impact Fee Fund Balance of $50,000

PREVIOUS COUNCIL OR COMMISSION ACTION: The Hollister City Council approved Resolution 2021-13 authorizing the original purchase of the Type 3 Engine on January 19, 2021.

CEQA: N/A

ATTACHMENTS:

1. Resolution

2. Budget Adjustment

RESOLUTION NO. 2025-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HOLLISTER APPROVING THE ALLOCATION OF $50,000 FROM FIRE IMPACT FEE

FUNDS FOR THE PURCHASE AND INSTALLATION OF AN AUXILIARY PUMP ON THE TYPE 3 FIRE ENGINE

WHEREAS, the City of Hollister Fire Department took delivery of a new Type 3 fire engine in 2024, designed specifically for wildland and rural firefighting operations; and WHEREAS, operational testing of the engine in Hollister’s local service areas has revealed significant water pressure fluctuations when operating on hilly terrain, including pressure surges while ascending and drops while descending; and WHEREAS, these fluctuations pose safety concerns and hinder the engine’s ability to deliver a consistent and reliable water supply, thereby delaying its placement into active service; and
WHEREAS, the installation of an auxiliary pump has been identified as a necessary retrofit to ensure safe and efficient engine operation by maintaining steady water pressure regardless of elevation changes; and
WHEREAS, the Type 3 engine was purchased to expand the City’s fire fleet to better serve the growing community and the auxiliary pump is a necessary improvement to ensure the Type 3 engine operates at full capacity; and WHEREAS, the City solicited bids from four vendors, and ultimately selected Burton’s Fire of Modesto, an authorized Rosenbauer service provider, to perform the installation and to ensure equipment compatibility and to preserve manufacturer warranties; and WHEREAS, the total cost of the purchase and installation of the auxiliary pump is estimated at $50,000; and
WHEREAS, Fire Impact Fee funds are available and eligible to be used for this purpose to improve firefighting infrastructure and readiness.

NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Hollister authorizes:

1. The allocation of $50,000 from Fire Impact Fee funds for the purchase and installation of an auxiliary pump on the Type 3 fire engine ; and

2. The City Manager, or their designee, is authorized to execute all necessary documents to facilitate the purchase and installation of said auxiliary pump, consistent with this resolution.

Resolution No. 2025-XX

PASSED AND ADOPTED, by the City Council of the City of Hollister at a regular meeting held on September 15, 2025, by the following vote:

AYES:

NOES:

ABSTAINED:

ABSENT:

Roxanne Stephens, Mayor

ATTEST: APPROVED AS TO FORM:

Lozano Smith Attorneys at Law

____
Jennifer Woodworth, MMC, City Clerk Mary F. Lerner, City Attorney

I, Jennifer Woodworth, MMC, City Clerk of the City of Hollister, do hereby certify that the attached Resolution No. 2025-XX is an original resolution, or true and correct copy of a City resolution, duly adopted by the Council of the City of Hollister at a regular meeting held on September 15, 2025 at which meeting a quorum was present.

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Hollister on September 15, 2025.

Jennifer Woodworth, MMC
City Clerk of the City of Hollister

STAFF REPORT

HOLLISTER CITY COUNCIL
MEETING DATE: September 15, 2025
REPORT # Fire-2025-24

AGENDA ITEM: A RESOLUTION AUTHORIZING THE CITY MANAGER TO

EXECUTE A CONTRACT FOR EMERGENCY MEDICAL SERVICES WITH THE 33RD DISTRICT AGRICULTURAL ASSOCIATION FOR THE 2025 SAN BENITO

COUNTY FAIR

DEPARTMENT: Fire
DEPARTMENT HEAD: Jonathan Goulding, Fire Chief
STAFF CONTACT: Jonathan Goulding, Fire Chief

RECOMMENDED ACTION: Adopt a resolution authorizing the City Manager to execute a contract for emergency medical services with the 33 rd Agricultural Association for the 2025 San Benito County Fair.

DISCUSSION: The 33rd District Agricultural Association has requested standby for emergency medical services (EMS) for the 2025 San Benito County Fair at the San Benito County Fairgrounds located at 9000 Airline Highway, Tres Pinos, CA 95075 from October 3, 2025 through October 5, 2025. The 33rd District Agricultural Association also requested stand-by for EMS for their Truck Pull Event on October 5, 2025.

The 33rd District Agricultural Association agrees to pay fees for service to the City of Hollister Fire Department for EMS standby for the duration of the San Benito County Fair in the amount of up to $7,864.97. The 33rd District Agricultural Association also agrees to pay fees for service to the City of Hollister for the Truck Pull Event in the amount of up to $1,921.85.

FISCAL IMPACT: This contract is cost neutral as the City will recoup all costs of providing the services.

PREVIOUS COUNCIL OR COMMISSION ACTION: Contracts for 2024 San Benito County Fair were approved by Hollister City Council.

CEQA: N/A

ATTACHMENTS:

1. Resolution

2. San Benito County Fair Contract

3. San Benito County Truck Pulls Contract

RESOLUTION NO. 2025-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HOLLISTER

AUTHORIZING THE CITY MANAGER TO EXECUTE A CONTRACT FOR
EMERGENCY MEDICAL SERVICES WITH THE 33RD DISTRICT
AGRICULTURAL ASSOCIATION FOR THE 2025 SAN BENITO COUNTY FAIR

WHEREAS, the 33rd District Agricultural Association requested standby for Emergency Medical Services for the 2025 San Benito County Fair; and

WHEREAS, the Hollister Fire Department will provide two Emergency Medical Technicians for First Aid only from October 3, 2025 through October 5, 2025; and

WHEREAS, the Hollister Fire Department will provide a stand-by fire engine and personnel for the Truck Pulls on October 5, 2025; and

WHEREAS, the 33rd District Agricultural Association agrees to pay fees for service to the City of Hollister in the amount of up to $7,864.97 for EMS Standy; and

WHEREAS, the 33rd District Agricultural Association agrees to pay fees for service to the City of Hollister in the amount of up to $1,921.85 for Fire Engine Standby at the Truck Pull Event.

NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Hollister:
authorizes the City Manager to execute a contract between the City of Hollister and the 33rd District Agricultural Association.

PASSED AND ADOPTED, by the City Council of the City of Hollister at a regular meeting held on September 15, 2025, by the following vote:

AYES:

NOES:

ABSTAINED:

ABSENT:

Roxanne Stephens, Mayor

ATTEST: APPROVED AS TO FORM:

Lozano Smith Attorneys at Law

____
Jennifer Woodworth, MMC, City Clerk Mary F. Lerner, City Attorney

Resolution No. 2025-XX

I, Jennifer Woodworth, MMC, City Clerk of the City of Hollister, do hereby certify that the attached Resolution No. 2025-XX is an original resolution, or true and correct copy of a City resolution, duly adopted by the Council of the City of Hollister at a regular meeting held on September 15, 2025 at which meeting a quorum was present.

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Hollister on September 15, 2025.

Jennifer Woodworth, MMC
City Clerk of the City of Hollister

STAFF REPORT

HOLLISTER CITY COUNCIL
MEETING DATE: September 15, 2025
REPORT # Finance-2025-18

AGENDA ITEM: A RESOLUTION AUTHORIZING THE CITY MANAGER TO

NEGOTIATE AND EXECUTE AN AGREEMENT FOR FIRE, POLICE, AND ANIMAL CONTROL IMPACT FEE STUDY; APPROVAL OF BUDGET ADJUSTMENT FOR FUNDS 301 AND 302; AND ESTABLISHMENT OF A NEW FUND FOR ANIMAL

CONTROL IMPACT FEE

DEPARTMENT: Adminstrative Services
DEPARTMENT HEAD: David Mirrione, City Manager
STAFF CONTACT: David Mirrione, City Manager

RECOMMENDED ACTION: Adopt a resolution:

1. Authorizing the City Manager to negotiate and execute an agreement and any necessary amendments within the approved budget for consultant to prepare an updated Fire and Police impact fee study and to develop a new Animal Control impact fee;

2. Approving a budget adjustment increasing appropriations in Fund 301 (Fire Impact) and Fund 302 (Police Impact), using available fund balance; and

3. Approving the establishment of a new special revenue fund to account for revenues and expenditures related to the Animal Control Impact Fee as established by the development of the impact fee.

DISCUSSION:

The City levies development impact fees to ensure that new development pays its proportionate share of the cost of public facilities needed to serve growth. To remain compliant with the Mitigation Fee Act (Government Code Section 66000 et seq.) and to reflect current costs and service demands, the City must prepare an updated impact fee study.

As part of this effort, the study will evaluate the City’s Fire and Police impact fees and will also examine the need for an Animal Control impact fee. Although t he Animal Control Division is housed within the Police Department, it provides distinct services that are directly affected by population growth and development. The City does not currently have a dedicated Animal Control impact fee, and the study will determine the appropriate structure to ensure that future development contributes its fair share toward facilities and resources required to meet increased demand.

To fund this effort:

 The Police and Fire portions of the fee study will be funded by budget adjustments to the Fire (Fund 301) and Police (Fund 302) Impact Fee Funds, utilizing available fund balance.
 The Animal Control portion will be funded from the General Fund, using existing budgeted allocations within the Animal Control Division. However, o nce the

Animal Control Impact Fee is established and sufficient fund balance accrues, the General Fund will be reimbursed for the cost of the fee study.

To ensure proper fiscal tracking, staff also recommends establishing a new special revenue fund for Animal Control Impact Fees.

FISCAL IMPACT:

The total cost of agreement with consultant. Funding will be provided as follows:

 Fire portion: Funded through Fund 301 (Fire Impact) via a budget adjustment using available fund balance.
 Police portion: Funded through Fund 302 (Police Impact) via a budget adjustment using available fund balance.
 Animal Control portion: Funded initially through the General Fund, from existing budgeted allocations for the Animal Control Division. Once the Animal Control Impact Fee is established and adequate fund balance has accrued, the General Fund will be reimbursed for its share of the study.

PREVIOUS COUNCIL OR COMMISSION ACTION:

The council has previously adopted and updated development impact fees for other public facilities, including periodic adjustments based on the Consumer Price Index (CPI) to account for rising costs. This action represents the next comprehensive update and introduces a new impact fee for Animal Control.

CEQA: Approval of the agreement, budget adjustment, and establishment of a new fee fund do not constitute a “project” under CEQA and are therefore not subject to environmental review.

ATTACHMENTS:

1. Draft Resolution

2. Budget Adjustment Form

RESOLUTION NO. 2025-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HOLLISTER

AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND EXECUTE

AN AGREEMENT AND ANY NECESSARY AMENDMENTS FOR FIRE,

POLICE, AND ANIMAL CONTROL IMPACT FEE STUDY, AUTHORIZING

BUDGET ADJUSTMENTS, AND APPROVING THE ESTABLISHMENT

OF A NEW FUND FOR THE ANIMAL CONTROL IMPACT FEE

WHEREAS, the City of Hollister levies development impact fees pursuant to the Mitigation Fee Act (Government Code Section 66000 et seq.) to ensure that new development pays its proportionate share of the cost of public facilities necessary to serve growth; and

WHEREAS, the City’s Fire and Police impact fees require comprehensive updating to ensure continued compliance with State law, reflect current construction costs, and service delivery standards; and

WHEREAS, the City does not currently have an Animal Control Impact Fee, despite Animal Control providing distinct services and requiring facilities that are directly impacted by growth and development; and

WHEREAS, new development creates increased demand for animal control services; and

WHEREAS, the City has determined that updating existing impact fees and establishing a new Animal Control Impact Fee will ensure fair allocation of infrastructure costs; and

WHEREAS, the costs of the Fire and Police portions of the study shall be funded through budget adjustments to Fund 301 (Fire Impact Fund) and Fund 302 (Police Impact Fund), utilizing available fund balance; and

WHEREAS, the Animal Control portion of the study shall be funded initially through the General Fund using existing Animal Control Division allocations, with the intent that once the Animal Control Impact Fee is adopted and sufficient revenues have been collected, the General Fund shall be reimbursed for its share of the cost; and

WHEREAS, it is necessary to establish a new special revenue fund to account for revenues and expenditures of the Animal Control Impact Fee once implemented; and

WHEREAS, the City will negotiate contract terms that protect the City interests.

NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Hollister hereby:

1. Authorizes the City Manager to negotiate and execute an agreement and any necessary amendments within the approved budget for preparation of a Police, Fire, and Animal Control Impact Fee Study.

2. Approves a budget adjustment increasing appropriations in Fund 301 (Fire Impact)

Resolution No. 2025-XX

and Fund 302 (Police Impact) utilizing available fund balance for the purpose of funding the Fire and Police portions of the study.

3. Approves funding the Animal Control portion of the study through the General Fund, utilizing existing Animal Control Division allocations, with the intent that the General Fund shall be reimbursed from future Animal Control Impact Fee revenues once sufficient fund balance has accrued.

4. Approves the establishment of a new special fund, which shall be used solely for the collection and expenditure of Animal Control Impact Fees, consistent with the Mitigation Fee Act

PASSED AND ADOPTED, by the City Council of the City of Hollister at a regular meeting held on September 15, 2025, by the following vote:

AYES:

NOES:

ABSTAINED:

ABSENT:

Roxanne Stephens, Mayor

ATTEST: APPROVED AS TO FORM:

Lozano Smith Attorneys at Law

____
Jennifer Woodworth, MMC, City Clerk Mary F. Lerner, City Attorney

I, Jennifer Woodworth, MMC, City Clerk of the City of Hollister, do hereby certify that the attached Resolution No. 2025-XX is an original resolution, or true and correct copy of a City resolution, duly adopted by the Council of the City of Hollister at a regular meeting held on September 15, 2025, at which meeting a quorum was present.

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Hollister on September 15, 2025.

Jennifer Woodworth, MMC
City Clerk of the City of Hollister

WILLDAN FINANCIAL SERVICES Page 1 CITY OF HOLLISTER, CALIFORNIA

AGREEMENT FOR PROFESSIONAL SERVICES
THIS AGREEMENT is made and entered into this 15th day of September, 2025, by and between WILLDAN FINANCIAL SERVICES (“WFS”), a corporation, and the CITY OF HOLLISTER, hereinafter referred to as “Client.”
WHEREAS, Client desires to employ WFS to furnish ongoing professional services in connection with a Development Impact Fee Study focusing on Fire, Police, and Animal Control Impact Fees , hereinafter referred to as the “Project.”
NOW, THEREFORE, in consideration of the mutual promises, covenants and conditions herein contained, the parties agree as follows:

SECTION I – BASIC SERVICES
WFS shall provide to the Client the basic services described in detail in “Exhibit A,” Scope of Services, attached hereto and incorporated herein by this reference.

SECTION II – ADDITIONAL SERVICES
If authorized, WFS shall furnish additional services, which are in addition to the basic services. To the extent that the additional services have been identified in this Agreement, they are itemized in “Exhibit A” and will be paid for by Client as indicated in Section III hereof. As further additional services are requested by Client, this Agreement may be modified and subject to mutual consent by execution of an addendum by authorized representatives of both parties, setting forth the additional scope of services to be performed, the performance time schedule and the compensation for such services.

SECTION III – COMPENSATION
WFS shall be compensated for basic services rendered under Section I, as in accordance with the terms and conditions indicated in “Exhibit B,” Fees for Services; and WFS will be compensated for any additional services rendered under Section II as more particularly described in a fully approved and executed addendum to this Agreement. If no addendum is executed, then WFS shall be compensated at its then-prevailing hourly rates for such additional services. Notwithstanding the foregoing, total compensation under this Agreement shall not exceed Thirty-Five Thousand Dollars ($35,000) without a duly approved and executed amendment to this Agreement.

WFS may submit monthly statements for basic and additional services rendered. It is intended that Client will make payments to WFS within forty-five (45) days of invoice. All invoices not paid within forty-five (45) days shall bear interest at the rate of one and one-half (11/2) percent per month or the then-legal rate allowed. Client reserves the right to withhold payment for work that does not meet contractual standards.

WILLDAN FINANCIAL SERVICES Page 2 CITY OF HOLLISTER, CALIFORNIA SECTION IV – INDEMNITY; INSURANCE REQUIRED
A. Indemnity. WFS shall defend, indemnify and hold harmless Client, its officers, officials, directors, employees, designated agents, and appointed volunteers from and against all claims, damages, losses and expenses, including attorney fees, arising out of the performance of the services described herein, to the extent caused in whole or in part by the negligent acts, errors, or omissions of WFS, any subconsultant, anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable, except where caused by the active negligence or willful misconduct of Client or Client’s officers, agents, or employees. This indemnification shall survive the termination of this Agreement.

The parties shall cooperate with each other with respect to resolving any claim, liability or loss for which indemnification may be required hereunder, including by making, or causing the indemnified party to make, all commercially reasonable efforts to mitigate any such claim, liability or loss. Neither party shall have an obligation to indemnify the other party for any losses to the extent they are caused, contributed to or exacerbated by the actions or failure to act of the indemnified party, including without limitation, the failure to take actions to mitigate such losses.

B. Insurance. Without in any way limiting WFS’ liability pursuant to the indemnification described above, WFS shall maintain, during the term of this contract, the following insurance:

General Liability
Comprehensive General Liability, including:

Premises and Operations
Contractual Liability
Personal Injury Liability
Independent Contractors Liability
(if applicable)
$1,000,000 Combined Single Limit, per occurrence
and $2,000,000 general aggregate
Automobile Liability
Comprehensive Automobile Liability
(including owned, non-owned and
hired autos)
$1,000,000 Combined Single Limit, per occurrence
Workers’ Compensation and Employer’s
Liability
Workers’ Compensation Insurance
Employer’s Liability
Statutory, $1,000,000
Professional Liability
Professional Liability Insurance
$1,000,000 per claim and annual aggregate

WILLDAN FINANCIAL SERVICES Page 3 CITY OF HOLLISTER, CALIFORNIA SECTION V – INDEPENDENT CONTRACTOR STATUS
WFS shall be an independent contractor and shall have responsibility for and control over the details and means of providing the services under this Agreement.

SECTION VI – OWNERSHIP AND MAINTENANCE OF DOCUMENTS
WFS may rely upon the accuracy of any documents provided to WFS by Client. All documents, including without limitation, reports, plans, specifications, field data, field notes, laboratory test data, calculations, estimates, schedules, spreadsheets, or other documents furnished by WFS pursuant to this Agreement, regardless of media (e.g., paper, electronic, magnetic, optical, Mylar, etc), are instruments of WFS’ services in respect to this Project and not products. All such documents shall be the property of WFS provided, however, that a copy of the final documents shall be made available to Client upon request. These documents are not intended, nor represented to be suitable for reuse by Client or any others on extensions of this Project or on any other project. Any modification or reuse without specific written verification and adoption by WFS for the specific purposes intended will be at user’s sole risk. Client agrees to save, keep and hold harmless WFS from all damages, costs or expenses in law and equity including costs of suit and attorneys’ fees resulting from such unauthorized reuse. Client further agrees to compensate WFS for any time spent or expenses incurred by WFS in defense of any such claim, in accordance with WFS’ prevailing fee schedule.

Client acknowledges that its right to utilize the services and instruments of services of WFS will continue only so long as Client is not in default of the terms and conditions of this Agreement and Client has performed all obligations under this Agreement. Client further acknowledges that WFS has the unrestricted right to use the services provided pursuant to this Agreement, as well as to all instruments of service provided pursuant to this Agreement.

Client agrees not to use or permit any other person to use any instruments of service prepared by WFS, which are not final and which WFS does not sign. Client agrees to be liable for any such use of non-final instruments of service not signed, stamped or s ealed by WFS and waives liability against WFS for their use.

WFS shall be entitled to rely upon, with no obligation to verify, the completeness and accuracy of all information, data, reports, studies, plans and specifications provided by Client or by Client's attorney(s), engineer(s), accountant(s), consultant(s) or employee(s) to Consultant. Client shall make no claim against WFS alleging that WFS should not have relied upon such information provided by Client to WFS.

WFS’ records, documents, calculations, test information and all other instruments of service shall be kept on file in legible form for a period of not less than two (2) years after completion of the services covered in this Agreement.

WILLDAN FINANCIAL SERVICES Page 4 CITY OF HOLLISTER, CALIFORNIA SECTION VII – SUSPENSION OF SERVICES
Client may, at any time, by thirty (30) days’ written notice, suspend further performance by WFS. All suspensions shall extend the time schedule for performance in a mutually satisfactory manner and WFS shall be paid for all services performed and reimbursable expenses incurred prior to the suspensions date.

SECTION VIII – TERMINATION
Either party may terminate this Agreement at any time by giving thirty (30) days’ written notice to the other party of such termination. If this Agreement is terminated as provided herein, WFS will be paid an amount which bears the same ratio to the total compensation as the services actually performed bear to the total services of WFS covered by this Agreement, less payments of compensation previously made.

Client may terminate this Agreement at least 7 days’ notice in cases of termination for cause, including but not limited to: material breach, failure to meet deadlines, or unsatisfactory performance.

SECTION IX – COMPLIANCE WITH LAW
Each party hereto will use reasonable care to comply with applicable laws in effect at the time the services are performed hereunder, which to the best of their knowledge, information and belief apply to their respective obligations under this Agreement.

SECTION X – SUCCESSORS AND ASSIGNS
This Agreement shall be binding on the successors and assigns of the parties; but either party, without written consent of the other party, shall not assign it.

SECTION XI – ATTORNEYS’ FEES
In the event that any judgment is entered in any action upon this Agreement, the party hereto against whom such judgment is rendered agrees to pay the amount equal to the reasonable attorneys’ fees of the prevailing party in such action and that such amount may be added to and made a part of such judgment.

SECTION XII – ALTERNATIVE DISPUTE RESOLUTION
If a dispute arises between the parties relating to this Agreement, the parties agree to use the following procedure prior to either party pursuing other available remedies:

A. A meeting shall be held promptly between the parties, attended by individuals with decision-making authority regarding the dispute, to attempt in good faith to negotiate a resolution of the dispute.

B. If, within thirty (30) days after such meeting, the parties have not succeeded in negotiating a resolution of the dispute, they will jointly appoint a mutually-acceptable neutral person not affiliated with either of the parties (the “neutral”), seeking assistance in such regard if they have been unable to agree upon such appointment within forty (40) days from the initial meeting.

WILLDAN FINANCIAL SERVICES Page 5 CITY OF HOLLISTER, CALIFORNIA The parties shall share the fees of the neutral equally.

C. In consultation with the neutral, the parties will select or devise an alternative dispute resolution procedure (“ADR”) by which they will attempt to resolve the dispute, and a time and place for the ADR to be held, with the neutral making the decision as to the procedure, and/or place and time (but unless circumstances require otherwise, not later than sixty (60) days after selection of the neutral) if the parties have been unable to agree on any of such matters within twenty (20) days after initial consultation with the neutral.

D. The parties agree to participate in good faith in the ADR to its conclusion, as designated by the neutral. If the parties are not successful in resolving the dispute through the ADR, then the parties may agree to submit the matter to binding arbitration or a private adjudicator, or either party may seek an adjudicated resolution through the appropriate court.

SECTION XIII – RECORDS
Records of WFS’ direct labor costs, payroll costs, and reimbursable expenses pertaining to the Project covered by this Agreement will be kept on a generally recognized accounting basis and made available during normal business hours upon reasonable notice.

WFS’ records will be available for examination and audit if and as required.

SECTION XIV – MISCELLANEOUS PROVISIONS
This Agreement is subject to the following special provisions:

A. The titles used in this Agreement are for general reference only and are not a part of the Agreement.

B. This Agreement shall be interpreted as though prepared by both parties.

C. Any provision of this Agreement held to violate any law shall be deemed void, and all remaining provisions shall continue in full force and effect.

D. This Agreement shall be interpreted under the laws of the State of California.

E. This Agreement comprises a final and complete repository of the understandings between the parties and supersedes all prior or contemporary communications, representations, or agreements, whether oral or written, relating to the subject matter of this Agreement.

F. Any notices given pursuant to this Agreement shall be effective on the third business day after posting by first class mail, postage prepaid, to the address appearing immediately after the signatures below.

G. WFS shall not be liable for damages resulting from the actions or inactions of governmental agencies, including, but not limited to: permit processing, environmental impact reports, dedications, General Plans, and amendments thereto; zoning matters, annexations, or consolidations; use or Conditional Use Permits; project or plan approvals; and building permits.

WILLDAN FINANCIAL SERVICES Page 6 CITY OF HOLLISTER, CALIFORNIA H. WFS’ waiver of any term, condition, or covenant, or breach of any term, condition, or covenant, shall not constitute the waiver of any subsequent breach of any other term, condition, or covenant.

I. Client acknowledges that WFS is not responsible for the performance of services by third parties, provided that said WFS has not retained third parties.

IN WITNESS WHEREOF, the parties hereto have accepted, made and executed this Agreement upon the terms, conditions, and provisions above stated, as of the day and year first above written.

WILLDAN FINANCIAL SERVICES CITY OF HOLLISTER, CALIFORNIA By: By:

Chris Fisher David Mirrione
Title: Vice President/Director Title: City Manager
Address: 27368 Via Industria, Suite 200 Address: 375 5th Street Temecula, California 92590 Hollister, California 95023

Exhibit A

WILLDAN FINANCIAL SERVICES Page 7 CITY OF HOLLISTER, CALIFORNIA

SCOPE OF SERVICES

DEVELOPMENT IMPACT FEE STUDY
Work Plan
We will work in concert with the City to adjust the scope as needed during the course of the study.

Task 1: Identify Policy Issues
Objective: Identify and discuss potential policy issues raised by the study. Kick-off meeting with staff to review data needs, policy issues, schedule and discuss potential additional fee categories.

Description: Review agency documents related to existing capital planning policies and funding programs including existing impact fees. Bring policy issues to City staff’s attention, as appropriate, during the project and seek guidance prior to proceeding.

Potential policy issues include:
▪ Prior fee studies;
▪ Changes in implementation resulting from AB 602;
▪ Changes in approach and nexus findings necessary to comply with AB 602; ▪ Adequacy of General Plan and other public facility planning policies (e.g., level of service standards); impact fee ordinances and resolutions, and prior nexus studies; ▪ Availability of existing public facility master plans and CIPs to identify needed facilities; ▪ Types of facilities to be funded by each fee;
▪ Land use categories for imposition of fees;
▪ Nexus approach to determining facility standards;
▪ Nexus approach to allocating cost burden among land uses, including need for separate fee zones; ▪ Potential alternative funding sources, if needed;
▪ Potential fee zones or subareas to tailor the fee program or address other policy considerations; ▪ Funding existing deficiencies, if identified; and
▪ Implementation concerns and strategies.

Deliverables: (1) Information requests; and (2) revised project scope and schedule (if needed).

Task 2: Identify Existing Development and Future Growth Objective: (1) Identify estimates of existing levels of development; and (2) identify a projection of future growth consistent with current planning policy.

Description: Identify base year for estimating existing levels of development and for calculating facility standards based on existing facility inventories (see Task 3). Include entitled development that would be exempt from fee program.

Consult with City staff to identify growth projections to a defined long-range planning horizon (10 to 30 years). Projections provide a basis for determining the facilities needed to accommodate growth (see Task 4). Consider projections from regional metropolitan planning agencies and other available sources - City staff to provide estimates and projections by zone if needed.

Develop approach for converting land use data to measure of facility demand.

For example, identify population and employment density factors to convert population and employment estimates to dwelling units and building square footage. Select appropriate approach for each impact fee based on:
▪ Available local data on facility demand by land use category; ▪ Approaches used by other agencies; and
▪ Support for other agency policy objectives.

Exhibit A

WILLDAN FINANCIAL SERVICES Page 8 CITY OF HOLLISTER, CALIFORNIA Changes to estimates and projections during subsequent tasks could cause unanticipated effort and require an amendment to the scope of services and budget. Obtain approval of estimates and projections from City staff prior to proceeding.

Task 3: Determine Facility Standards
Note: Conduct Tasks 3, 4, and 5 separately for each intended facility and fee type. Conduct tasks concurrently because of the effect of facility standards (Task 3), facility needs (Task 4), and alternative funding (Task 5) on the fee calculation.

Objective: Determine standards to identify facilities required to accommodate growth.

Description: Identify and evaluate possible facility standards depending upon the facility type, current facility inventory data, and available facility planning documents. Consider use of: (1) adopted policy standards (e.g., General Plan, master facility plans); (2) standards derived from existing facility inventories; or (3) standards derived from a list of planned facility projects. City staff to provide policies, inventories, and project lists.

Willdan will work with the City to identify additional costs that might be eligible for funding by the DIF.

Task 4: Determine Facilities Needs and Costs
Objective: Identify the type, amount and cost of facilities required to accommodate growth and correct deficiencies, if any.

Description: Quantify total planned facilities based on growth projection from Task 2 and facility standards from Task 3. Express planned facilities in general quantities such as acres of parkland, or as a specific list of capital projects from a master facility plan.

Location of planned facilities may or may not be specified. If only a general description of planned facilities is available through the planning horizon, City staff to provide a list of specific capital projects for use of fee revenues during the short term (e.g., five years).

Distinguish between: (1) facilities needed to serve growth (that can be funded by impact fees); and (2) facilities needed to correct existing deficiencies (that cannot be funded by impact fees). Use one of three cost allocation methods (existing inventory, system plan, or planned facilities).

Gather planning-level data on new facilities costs based on lump sum project cost estimates, or unit costs and project quantities (acres, building square feet, lane miles, etc.). Consider recent City experience, local market data such as land transactions, and consultant team experience from prior projects. Inflate older cost estimates to base year using appropriate cost indices.

The revised facility costs will form the basis of the capital improvement program needed for compliance with AB 602.

This scope of work does not include additional engineering analysis, including traffic engineering, to identify total facility needs, existing deficiencies, or cost estimates. Any such engineering/design work can be provided under a separate contract with Willdan Engineering or a third party. However, Willdan can use rough descriptions and comparables to calculate a reasonable cost estimate sufficient for use in the DIF study.

Task 5: Identify Funding and Financing Alternatives
Objective: Determine the extent of alternative (non-fee) funding available for new facilities.

Description: If impact fees are going to only partially fund a capital project, the Mitigation Fee Act requires the agency report on the anticipated source and timing of the additional funding every five years. There are two types of alternative funding sources that we will identify:

1. Funding from non-impact fee sources to correct existing deficiencies; and

2. Funding from new development other than impact fees that must be credited against new development’s impact fee contributions, possibly including taxes paid to finance facilities.

Identify anticipated alternative funding based on information from City staff or note that funds are still to be identified based on a list of probable funding alternatives. If fees will fund debt service include financing costs in the total cost of facilities. Assume facilities to be funded predominantly on a pay-as-you-go basis.

Scope does not include a cash flow analysis to analyze effect of timing of fee revenues on financing costs.

Exhibit A

WILLDAN FINANCIAL SERVICES Page 9 CITY OF HOLLISTER, CALIFORNIA Task 6: Comparison Analysis
Objective: Provide a comparison of the current and proposed impact fees to those of comparable/surrounding jurisdictions in San Benito County or elsewhere.

Description: Willdan will compare a total of five jurisdictions to be selected by the City.

Typically, Willdan prepares an analysis of fees charged to a series of prototype developments (such as residential, retail, etc.) to provide an “apples to apples” comparison, but the exact methodology will be determined in consultation with the City.

Task 7: Calculate Fees and Prepare Report
Objective: Provide technically defensible fee report that comprehensively documents project assumptions, methodologies, and results.

Description: Generate fee schedule to apportion facility costs to individual development projects. Use facility costs per unit of demand multiplied by demand by land use category based on data developed in prior tasks.

Prepare draft report tables for City staff to review, that document each step of the analysis, including schedule of maximum justified fees by facility type land use category and all other requirements of the Mitigation Fee Act.

Following one (1) round of comments from City staff on the quantitative analysis and fee schedules, prepare administrative draft report. The report will contain all required calculations and assumptions. In addition, Willdan will provide the City with best practices regarding a range of policy decisions for consideration by the City Council, including incentives for affordable housing production and considerations of the impact of fees on development in the City.

Following one (1) round of comments on administrative draft, prepare public draft for presentation to interested parties, the public and elected officials. This public review draft will be presented and public stakeholder meetings and at a Council informational session. Prepare final report, if necessary, based on comments received on the public draft report. If requested, post the report on our website for public access.

Note that as of January 2022, the Nexus study is adopted separately from the fees, an d with a 30-day notice.

Fees will be calculating residential land uses in compliance with AB 602.

Provide legal counsel with copies of fee resolutions and ordinances used by other jurisdictions.

Deliverables: We will provide up to two (2) bound copies of the draft report, one (1) unbound copy, one (1) Microsoft Word copy; and up to two (2) bound copies of the final report.

Task 8: Meetings
Objective: The project manager or other necessary Willdan staff will attend project meetings. A member of the Impact Fee project team will attend up to three (3) in-person meetings and presentations throughout the City’s engagement. Phone conferences are not considered meetings for the purposes of this scope.

Optional: Optional stakeholder and Council meetings may be requested by the City.

City Staff Support
To complete our tasks, we will need the cooperation of City staff. We suggest that the City of Hollister assign a key individual to represent the City as the project manager who can function as our primary contact. We anticipate that the City’s project manager will:
1) Coordinate responses to requests for information;
2) Coordinate review of work products; and
3) Help resolve policy issues.

Willdan will endeavor to minimize the impact on City staff in the completion of this project. We will ask for responses to initial information requests in a timely manner. If there are delays on the part of the City, we will contact the City’s project manager to steer the project back on track. We will keep the City’s project manager informed of data or feedback we need to keep the project on schedule.

Exhibit A

WILLDAN FINANCIAL SERVICES Page 10 CITY OF HOLLISTER, CALIFORNIA Project Disclaimer
Willdan is a registered municipal advisory firm with the U.S. Securities and Exchange Commission (“SEC”), as such the City of Hollister represents, acknowledges, and agrees that Willdan is not acting as a “municipal advisor” (as defined by the SEC), to the City, in any capacity as it relates to the project proposed in this Development Impact Fee Study proposal. (i) The City uses, or may use, the services of one or more municipal advisors registered with the SEC to advise it in connection with municipal financial products and the issuance of municipal securities; (ii) The City is not looking to Willdan to provide, and the City shall not otherwise request or require Willdan to provide any advice or recommendations with respect to municipal financial products or the issuance of municipal securities (including any advice or recommendations with respect to the structure, timing, terms, and other similar matters concerning such financial products or issues);
(iii) The provisions of this proposal and the services to be provided hereunder as outlined in the scope of services are not intended (and shall not be construed) to constitute or include any municipal advisory services within the meaning of Section 15B of the U.S. Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the rules and regulations adopted thereunder;
(iv) For the avoidance of doubt and without limiting the foregoing, in connection with any revenue projections, cash-flow analyses, feasibility studies and/or other analyses Willdan may provide the City with respect to financial, economic or other matters relating to a prospective, new or existing issuance of municipal securities of the City , (A) any such projections, studies and analyses shall be based upon assumptions, opinions or views (including, without limitation, any assumptions related to revenue growth) established by the City, in conjunction with such of its municipal, financial, legal and other advisers as it deems appropriate; and (B) under no circumstances shall Willdan be asked to provide, nor shall it provide, any advice or recommendations or subjective assumptions, opinions or views with respect to the actual or proposed structure, terms, timing, pricing or other similar matters with respect to any municipal financial products or municipal securities issuances, including any revisions or amendments thereto; and (v) Notwithstanding all of the foregoing, the City recognizes that interpretive guidance regarding municipal advisory activities is currently quite limited and is likely to evolve and develop during the term of the potential engagement and, to that end, the City will work with Willdan throughout the term of the potential Agreement to ensure that the Agreement and the services to be provided by Willdan hereunder, is interpreted by the parties, and if necessary amended, in a manner intended to ensure that the City is not asking Willdan to provide, and Willdan is not in fact providing or required to provide, any municipal advisory services.

Exhibit B

WILLDAN FINANCIAL SERVICES Page 11 CITY OF HOLLISTER, CALIFORNIA

FEES OF SERVICES

DEVELOPMENT IMPACT FEE STUDY
Willdan Financial Services (“Willdan”) proposes a fixed fee of $33,000 for the Development Impact Study.

Project Notes
▪ The fee denoted above includes attendance at three in-person meetings with City staff, stakeholders, and City Council.

Attendance at more than stated meetings will be billed at the per meeting fee. Attendance at additional on-site meetings or presentations will be $2,000 per meeting; attendance at additional remote meetings or presentations will be $1,000 per meeting.
▪ Comprehensive written responses to resolve conflicts or preparation of more than one set of major revisions to the draft report, will be classified as Additional Services, and may require additional billing at hourly rates stated in the hourly ra te schedule listed below. These additional fees shall only take effect once the fixed fee stated above has been exceeded. ▪ Our fee includes all direct expenses associated with the project. ▪ We will invoice the City monthly based on percentage of project completed. ▪ Additional services may be authorized by the City and will be billed at our then-current hourly overhead consulting rates. ▪ City shall reimburse Willdan for any costs Willdan incurs, including without limitation, copying costs, digitizing costs, travel expenses, employee time and attorneys' fees, to respond to the legal process of any governmental agency relating to City or relating to the project. Reimbursement shall be at Willdan 's rates in effect at the time of such response. ▪ Willdan will rely on the validity and accuracy of the City’s data and documentation to complete the analysis. Willdan will rely on the data as being accurate without performing an independent verification of accuracy and will not be responsible for any errors that result from inaccurate data provided by the client or a third party.

J. Edison
Principal-in-
Charge
C. Villarreal
Project
Manager Total
$ 300 $ 270 Hours Cost
Scope of Services
Task 1: Identify Policy Issues 3.0 8.0 11.0 3,060$ Task 2: Identify Existing Development and Future Growth 6.0 10.0 16.0 4,500 Task 3: Determine Facility Standards 6.0 12.0 18.0 5,040 Task 4: Determine Facilities Needs and Costs 4.0 12.0 16.0 4,440 Task 5: Identify Funding and Financing Alternatives 4.0 12.0 16.0 4,440 Task 6: Fee Comparison 1.0 6.0 7.0 1,920 Task 7: Calculate Fees and Prepare Report 6.0 12.0 18.0 5,040 Task 8: Meetings 8.0 8.0 16.0 4,560 Total – Development Impact Fee Study 38.0 80.0 118.0 33,000$ City of Hollister
Development Impact Fee Study
Fee Proposal

Exhibit B

WILLDAN FINANCIAL SERVICES Page 12 CITY OF HOLLISTER, CALIFORNIA Hourly Rates
Our current hourly rates are listed below.

Willdan Financial Services
Hourly Rate Schedule
Position Team Member Hourly Rate
Vice President / Director $310
Managing Principal James Edison $300
Principal Consultant Carlos Villarreal $270
Senior Project Manager $250
Project Manager $210
Senior Project Analyst $150
Senior Analyst $135
Analyst II $120
Analyst I $110

BUDGET ADJUSTMENT REQUEST FORM
Fiscal Year: 2025/26 Prepared By:Delia Ramon Date:8/22/2025 DH Approval:

Fund Cost Center Account Number Account Title Project Code Increase Decrease 301 1155 740310 Contracts: Fee Study 20,000
302 1155 740310 Contracts: Fee Study 20,000
Summary and Justification:This budget adjustement increases appropriations in Fund 301 (Fire Impact) and 302 (Police Impact) by $20,000 each is available in Fund 301 and 302 to support this expenditure.

Date: BA Entered By:

Date:Date:

Res. No.:Date Approved: Journal No.

1. Transfers between and within classifications of expenditures (i.e. between Salaries and Services and Supplies or between Professional Services and Office Supplies) must be approved by the City Manager.

2. Transfers between funds must be approved by the City Council.

3. Increase in budget needs to be offset by an additional revenue source or available fund balance.

FOR FINANCE USE ONLY:

Approvals
(Round up to the nearest dollar)
to cover the cost of the Impact Fee Nexus Study. The Mitigation Fee Act (AB 1600) authorizes the use of development impact fee revenues to prepare, update, and administer the fee program. The study is necessary to ensure the City's impact fees remain legally defensible, reflect current service and facility needs, and provide adequate funding for capital improvements required by new development. Sufficient fund balance *Route to Finance, for review, prior to approvals.

Finance Review:

City Manager Approval:

City Council Approval:

7.29.24 Docusign Envelope ID: 98A25196-A8CF-4367-9782-716EEF693DA4 8/26/2025 | 3:47:50 PM PDT
8/26/2025 | 3:55:31 PM PDT

Account Encumbrances Fiscal Budget % Remaining
-$ -$ 0.00%
20,000.00$ 20,000.00$ 100.00%
-$ 20,000.00$ 20,000.00$ 100.00% -$ 20,000.00$ 20,000.00$ 100.00% -$ -$ 0.00%
20,000.00$ 20,000.00$ 100.00%
-$ 20,000.00$ 20,000.00$ 100.00% -$ 20,000.00$ 20,000.00$ 100.00% -$ 40,000.00$ 40,000.00$ 100.00% 302 - AB1600 CIP Police Impact Totals: -$ -$ -$ Report Total:-$ -$ -$ -$ -$
Expense Totals:-$ -$ -$ Expense
302-1155-740310 CONTRACTS: FEE STUDY -$ -$ 301 - AB1600 CIP Fire Impact Totals: -$ -$ -$ 302 - AB1600 CIP Police Impact
-$ -$
Expense Totals:-$ -$ -$ 301 - AB1600 CIP Fire Impact
Expense
301-1155-740310 CONTRACTS: FEE STUDY -$ -$ Name Beginning Balance Total Activity Ending Balance Budget Remaining Detail vs Budget Report
City of Hollister Account Summary
Date Range: 07/01/2025 - 06/30/2026
Docusign Envelope ID: 98A25196-A8CF-4367-9782-716EEF693DA4

STAFF REPORT

HOLLISTER CITY COUNCIL
MEETING DATE: September 15, 2025
REPORT # Police-2025-09

AGENDA ITEM: A RESOLUTION AUTHORIZING THE CITY MANAGER AND

POLICE DEPARTMENT TO APPLY FOR A TRAFFIC GRANT FROM THE STATE OF

CALIFORNIA OFFICE OF TRAFFIC SAFETY

DEPARTMENT: Police
DEPARTMENT HEAD: Carlos Reynoso, Police Chief
STAFF CONTACT: Captain Michael Paddy

RECOMMENDED ACTION: Adopt a resolution authorizing the City Manager and the Police Department to apply for a traffic enforcement grant from the California Office of Traffic Safety.

DISCUSSION: On behalf of the City of Hollister, the Hollister Police Department is planning to apply for a grant offered by the California Office of Traffic Safety. The grant may provide reimbursement of salary expenses for increased traffic enforcement in our community and may also purchase equipment used to enforce traffic laws and DUI enforcement.

One of the requirements for the grant is that the application be supported by the city through the adoption of a resolution.

Staff recommends the City Council of the City of Hollister approve the resolution authorizing the application for the California Office of Traffic Safety Grant for 2025/2026 federal fiscal year.

FISCAL IMPACT: Unknown. Revenue for traffic enforcement to be determined.

PREVIOUS COUNCIL OR COMMISSION ACTION: Fourteen previous grants were applied for and accepted by the City Council.

CEQA: N/A

RESOLUTION NO. 2025-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HOLLISTER

AUTHORIZING THE CITY MANAGER AND POLICE DEPARTMENT TO

APPLY FOR A TRAFFIC GRANT FROM THE STATE OF CALIFORNIA

OFFICE OF TRAFFIC SAFETY

WHEREAS, the Hollister Police Department desires to apply for a traffic enforcement grant from the California Office of Traffic Safety; and

WHEREAS, the Hollister Police Department has applied for fourteen previous grants and has successfully obtained those previous grants; and

WHEREAS, the grants have reimbursed the City for personnel costs for additional traffic enforcement, DUI saturation patrols, and DUI checkpoints; and

WHEREAS, the grant has a condition that the grant application be supported by the city council through the adoption of a resolution.

NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Hollister authorizes the City Manager and the Hollister Police Department to apply for a California Office of Traffic Safety Grant.

PASSED AND ADOPTED, by the City Council of the City of Hollister at a regular meeting held on September 15, 2025, by the following vote:

AYES:

NOES:

ABSTAINED:

ABSENT:

Roxanne Stephens, Mayor

ATTEST: APPROVED AS TO FORM:

Lozano Smith Attorneys at Law

____
Jennifer Woodworth, MMC, City Clerk Mary F. Lerner, City Attorney

Resolution No. 2025-XX

I, Jennifer Woodworth, MMC, City Clerk of the City of Hollister, do hereby certify that the attached Resolution No. 2025-XX is an original resolution, or true and correct copy of a City resolution, duly adopted by the Council of the City of Hollister at a regular meeting held on September 15, 2025 at which meeting a quorum was present.

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Hollister on September 15, 2025.

Jennifer Woodworth, MMC
City Clerk of the City of Hollister

STAFF REPORT

HOLLISTER CITY COUNCIL
MEETING DATE: September 15, 2025
REPORT # Public Works-2025-51

AGENDA ITEM: A RESOLUTION APPROVING THE SAN BENITO URBAN AREA

WATER SUPPLY AND TREATMENT AGREEMENT WITH THE SAN BENITO

COUNTY WATER DISTRICT

DEPARTMENT: Public Works
DEPARTMENT HEAD: William Via, Public Works Director
STAFF CONTACT: William Via, Public Works Director

RECOMMENDED ACTION: Adopt a resolution approving the San Benito Urban Area Water Supply and Treatment Agreement with the San Benito County Water District.

DISCUSSION: In 2013, the City of Hollister (Hollister) entered into the Hollister Urban Area Water Supply and Treatment Agreement with the San Benito County Water District (SBCWD) to provide high-quality treated water to the residents of Hollister and the surrounding urban area. On February 18, 2025, the Hollister City Council approved a term sheet containing principles of agreement and authorized staff to negotiate. As a result of a long planning process, staff determined a new agreement would be preferred to amending the prior agreement. The San Benito Urban Area Water Supply and Treatment Agreement adds the City of San Juan Bautista as a new treated water customer, joining existing customers Hollister and Sunnyslope County Water District (Sunnyslope).

Additionally, the Accelerated Drought Response Project (ADRoP) to SBCWD’s treated water system and to lay out the mechanisms for funding and cost recovery for this project are included in the agreement.

The Hollister Urban Area Water and Wastewater Master Plan (Master Plan) was first completed in 2008 and updated again in 2017 and 2023. The Master Plan provides a long-term vision for water, wastewater, and recycled water management actions and infrastructure improvements to address water quality concerns and improve water supply reliability. The Master Plan also identified the need for the region to begin preliminary work toward the development of additional long-term water supplies to serve the region in times of drought. All projects identified in the 2008 Master Plan and 2017 Master Plan update have since been completed, and we are now in the process of implementing the 2023 recommendations as described below.

In August of 2021, SBCWD, Sunnyslope , Hollister, City of San Juan Bautista, and the County of San Benito entered into a Memorandum of Understanding (MOU) agreeing to update the Master Plan in order to confirm water demand forecasts, identify preferred long term water supply options, and incorporate San Juan Bautista into the urban water supply planning. The water quality goals found in the Master Plan update are meant to ensure wastewater salinity targets are met to provide residents satisfactory water service and to avoid fines and penalties from the Water Resources Control Board.

The 2023 Master Plan update presents a series of projects, as well as the alternatives considered, to achieve a reliable supply of high -quality water to the urban areas in San

Benito County for existing and future residents. A key near-term project is the Accelerated Drought Response Project, referred to as ADRoP. This project is needed to improve the reliability of water supplies for existing residents during drought conditions. The environmental documentation for this project expressly prohibits its use to accommodate future growth. ADRoP consists of the expansion of the West Hills Water Treatment Plant, conveyance pipelines, and the installation of up to 5 aquifer storage and recovery wells near Fallon Road. The City and SSCWD previously provided letters of support for the project for inclusion in grant applications, three of which have been awarded, totaling an estimated amount of $20 million in State and Federal grants. SBCWD has issued bond debt to cover the remaining capital costs for ADRoP.

FISCAL IMPACT: ADRoP will be funded by a Water Reliability Charge that is included in the Raw Water Charge for water treated at the water treatment plants (Lessalt Water Treatment Plant and West Hills Water Treatment Plant) and delivered to City of Hollister, Sunnyslope County Water District, and San Juan Bautista customers. The current reliability charge is $250 per acre-foot of water (325,851 gallons) and will be updated with SBCWD's new rate study, to be implemented in March 2026. Currently, this amounts to about $500,000 per year for the City from the Water Enterprise Fund (620), depending on the amount of surface water used. It is anticipated that the rate will go down due to the District receiving approximately $20 million in grant funding to fund a portion of the ADRoP project.

PREVIOUS COUNCIL OR COMMISSION ACTION: Resolution No. 2025-21 approving the Urban Area Water Master Plan Term Sheet and authorizing the City Manager to negotiate a contract with the Urban Area member agencies.

CEQA: This activity is not a project pursuant to California Environmental Quality Act Statute Section 21065 and Guidelines Section 15378(b)(5), as it is an administrative activity of government that will not result in direct or a reasonably foreseeable indirect physical change in the environment.

ATTACHMENTS:

1. Resolution

2. Agreement

RESOLUTION NO. 2025-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HOLLISTER

APPROVING THE SAN BENITO URBAN AREA WATER SUPPLY AND

TREATMENT AGREEMENT WITH THE SAN BENITO COUNTY WATER

DISTRICT

WHEREAS, the City of Hollister entered into the Hollister Urban Area Water Supply and Treatment Agreement with San Benito County Water District in 2013; and

WHEREAS, the Hollister Urban Area Water and Wastewater Master Plan was completed in 2008 and updated in 2017 and again in 2023; and

WHEREAS, in August of 2021, SBCWD, Sunnyslope, Hollister, City of San Juan Bautista, and the County of San Benito (Parties) entered into a Memorandum of Understanding (MOU) agreeing to update the Master Plan in order to confirm water demand forecasts, identify preferred long term water supply options, and incorporate San Juan Bautista into the urban water supply planning; and

WHEREAS, on February 18, 2025, the Hollister City Council approved a term sheet containing the principles of an agreement and authorized staff to negotiate an amendment to the Agreement; and

WHEREAS, the parties have determined that it is in their mutual interest to terminate the former agreement and replace it with this agreement; and

WHEREAS, the Agreement will include the City of San Juan Bautista, add the Accelerated Drought Response Project (ADRoP) to San Benito County Water District’s treated water system, lay out the mechanisms for funding and cost recovery of ADRoP , and change the name of the agreement to the San Benito Urban Area Water Supply and Treatment Agreement.

NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Hollister hereby approves the San Benito Urban Area Water Supply and Treatment Agreement.

Resolution No. 2025-XX

PASSED AND ADOPTED, by the City Council of the City of Hollister at a regular meeting held on September 15, 2025, by the following vote:

AYES:

NOES:

ABSTAINED:

ABSENT:

Roxanne Stephens, Mayor

ATTEST: APPROVED AS TO FORM:

Lozano Smith Attorneys at Law

____
Jennifer Woodworth, MMC, City Clerk Mary F. Lerner, City Attorney

I, Jennifer Woodworth, MMC, City Clerk of the City of Hollister, do hereby certify that the attached Resolution No. 2025-XX is an original resolution, or true and correct copy of a City resolution, duly adopted by the Council of the City of Hollister at a regular meeting held on September 15, 2025 at which meeting a quorum was present.

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Hollister on September 15, 2025.

Jennifer Woodworth, MMC
City Clerk of the City of Hollister

4936-8823-1989.8 009140.018

SAN BENITO URBAN AREA

WATER SUPPLY AND TREATMENT

AGREEMENT

i

TABLE OF CONTENTS
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ARTICLE 1: DEFINED TERMS ................................................................................................ 2 ARTICLE 2: TERM OF AGREEMENT ..................................................................................... 2 ARTICLE 3: QUANTITY OF TREATED WATER TO BE PROVIDED ....................................... 3

3.1. Amount of Delivery ............................................................................................... 3

3.2. Sources of Water ................................................................................................. 3 (a) Central Valley Project Water ..................................................................... 3 (b) Water Transfers ........................................................................................ 3 (c) Groundwater ............................................................................................ 4

3.3. Selection of Water Sources and Schedule of Water Demands ............................. 4

3.4. Limitations in Supply ............................................................................................ 4

3.5. Water Quality ....................................................................................................... 5 (a) Water Quality Goals ................................................................................. 5 (i) TDS Concentration ....................................................................... 5 (ii) Hardness ...................................................................................... 5 (b) Future Projects to Meet Water Quality Goals ............................................ 5 (c) District Responsible for Quality of Treated Water Delivered ...................... 6 ARTICLE 4: ADVISORY COMMITTEE .................................................................................... 6

4.1. Function of Advisory Committee ........................................................................... 6

4.2. Limit of Authority of Advisory Committee .............................................................. 6

4.3. Meetings of the Advisory Committee .................................................................... 7 ARTICLE 5: TREATMENT FACILITIES AND ADROP .............................................................. 7

5.1. TREATMENT FACILITIES .................................................................................... 7 (a) District Commitment of Funds .................................................................. 7 (b) Lessalt WTP ............................................................................................. 7 (1) Location and Capacity ............................................................. 7 (2) Included Costs ......................................................................... 8 (3) Pipeline to High Pressure Zone ............................................... 8 (4) Ownership ............................................................................... 8 (c) West Hills WTP ........................................................................................ 8 (1) Location and Capacity ............................................................. 8 (2) Included Capital Costs ............................................................. 8 (3) Ownership ............................................................................... 8

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(d) Non-Conveyance Covenant...................................................................... 9 (e) Operation and Maintenance of Treatment Facilities .................................. 9 (1) Operation Pursuant to Operation and Maintenance
Agreement......................................................................... 9 (2) Wholesale Customers Responsible for Operation of
Distribution Pipelines ......................................................... 9 (3) District Responsible for WTP Inflow and Outflow ..................... 9 (f) Wholesale Customers’ Respective Shares of Treatment Capacity ............ 9

5.2. ADROP .............................................................................................................. 10 (a) Project Description and Capacity ............................................................ 10 (b) Included Capital Costs ............................................................................ 10 (c) Grant Funding ........................................................................................ 10 (d) Operation and Maintenance of ADRoP ................................................... 10 (1) Expansion of West Hills WTP ................................................ 10 (2) ASR Wells and Pipelines ....................................................... 11

5.3. CAPITAL IMPROVEMENTS .............................................................................. 11 (a) Capital Improvements to Comply with Law or Regulation ....................... 11 (b) Capital Improvements to Accommodate Future Growth Demands .......... 11 ARTICLE 6: PAYMENT FOR TREATED WATER SERVICE ................................................... 12

6.1. Wholesale Customers’ Payment Obligations and Covenants ............................. 12

6.2. Wholesale Customers’ Obligation to Take Delivery of Water .............................. 12

6.3. Costs to Be Paid to District .............................................................................. 12 (a) Capital Costs .......................................................................................... 13 (1) Capital Treatment Component – Treatment Facilities............. 13 (2) Reliability Fee Component – ADRoP ..................................... 13 (3) Capital Replacement Reserve ComponentError! Bookmark not defined. (b) Fixed Operational Costs ......................................................................... 14 (1) Administrative Fee Component .............................................. 14 (2) Direct Cost Component ......................................................... 15 (3) Fixed Treatment Component ................................................. 15 (c) Variable Operational Costs ..................................................................... 15 (1) Water Supply Component ...................................................... 15 (2) Variable Treatment Component ............................................. 16 (d) ADRoP – Deferred Costs During Storage Years ..................................... 16 (e) Extraordinary Operations and Maintenance ............................................ 16

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6.4. Financial Covenants .......................................................................................... 17 (a) Adequacy of Wholesale Customers’ Revenue Sources .......................... 17 (b) Financial Reporting Requirements.......................................................... 17 (c) Wholesale Customers’ Pledge of Revenues ........................................... 17

6.5. Billing and Payment ........................................................................................... 18 (a) Invoices .................................................................................................. 18 (b) Non-reimbursable District Credit - SJB ................................................... 18 (c) Payment ................................................................................................. 18

6.6. Accounting ......................................................................................................... 18 (a) Application of Wholesale Customer Payments ....................................... 19 (b) Account Management............................................................................. 19 ARTICLE 7: DISPUTES AND ATTORNEYS’ FEES ................................................................ 19 ARTICLE 8: LIMITATION OF LIABILITY ................................................................................ 20 ARTICLE 9: TERMINATION .................................................................................................. 20 ARTICLE 10: DEFAULT ........................................................................................................... 20

10.1. Notice and Right to Cure .................................................................................... 20

10.2. Consequences of Default ................................................................................... 21 ARTICLE 11: AMENDMENTS ................................................................................................. 21

11.1. Amendment Only by Writing ............................................................................... 21

11.2. Changes in Parties’ Service Areas ..................................................................... 21 ARTICLE 12: SUCCESSORS AND ASSIGNS ......................................................................... 22 ARTICLE 13: ASSIGNMENT ................................................................................................... 22 ARTICLE 14: NOTICES ........................................................................................................... 22 ARTICLE 15: NO THIRD PARTY BENEFICIARIES ................................................................. 22 ARTICLE 16: OTHER PROVISIONS ....................................................................................... 23

16.1. Integration .......................................................................................................... 23 (a) Memorandum of Understanding, December 2004 and as
amended in February 2008..................................................................... 23 (b) Hollister Urban Area Water and Wastewater Master Plan, 2008. ............ 23 (c) Coordinated Water Supply and Treatment Agreement, 2010. ................. 23 (d) Water Supply and Treatment Agreement Statement of Intent, 2011. ...................................................................................................... 23 (e) Hollister Urban Area Water Supply and Treatment Agreement, 2013. ...................................................................................................... 23 (f) San Benito Urban Areas Water Supply and Treatment Master Plan Update, 2023. ......................................................................................... 23

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16.2. Relationship of Parties ....................................................................................... 23

16.3. Controlling Law .................................................................................................. 23

16.4. Captions ............................................................................................................ 23 EXHIBIT A: Capital Recovery Schedule .................................................................................... 25 EXHIBIT B: Description of ADRoP and Associated Costs .......................................................... 30 EXHIBIT C: Explanation of Cost Components ........................................................................... 31 EXHIBIT D: Wholesale Customers’ Water Service Areas .......................................................... 33 EXHIBIT E: District’s Zone 6 Boundary ..................................................................................... 35

1 SAN BENITO URBAN AREA WATER SUPPLY AND TREATMENT AGREEMENT This SAN BENITO URBAN AREA WATER SUPPLY AND TREATMENT AGREEMENT (“Agreement”) by and among the CITY OF HOLLISTER (“Hollister”), SAN BENITO COUNTY WATER DISTRICT (“District”), SUNNYSLOPE COUNTY WATER DISTRICT (“SSCWD”), and CITY OF SAN JUAN BAUTISTA (“SJB”), sometimes referred to herein as the “Parties” or individually as a “Party,” shall be effective as of the date is fully executed by the Parties.

EXPLANATORY RECITALS:

A. WHEREAS, pursuant to the Hollister Urban Area Water Supply and Treatment Agreement entered into on May 29, 2013, by and among Hollister, District, and SSCWD (“Former Agreement”), the Parties, but not including SJB, established principles and objectives for the development of a Water and Wastewater Master Plan (“Master Plan”) and for a Coordinated Water Supply and Treatment Plan (“Coordinated Plan”) (collectively “Plans”) for the Hollister Urban Area (“HUA”), which efforts have been memorialized in the documents enumerated in Article 16.1 of this Agreement; and
B. WHEREAS, pursuant to the Former Agreement, the Parties, but not including SJB, agreed to equitably allocate the capital costs and the costs for the operation and maintenance of certain facilities which were necessary for the implementation of the Plans and consisted of: the upgrade to the Lessalt Water Treatment Plant (“Lessalt WTP”); the construction of the West Hills Water Treatment Plant (“West Hills WTP”); a transmission pipeline from the West Hills WTP to the distribution system; and a transmission pipeline from the Lessalt WTP to the High Pressure Zone (collectively, “Treatment Facilities”); and C. WHEREAS, District advanced from its reserves $34,000,000 to fund the aggregate costs of the Treatment Facilities, consisting of construction costs, final design, environmental review, permitting, and construction management services; and D. WHEREAS, the construction and land acquisition necessary for the Treatment Facilities has been completed; and
E. WHEREAS, the Treatment Facilities are being operated and maintained pursuant to an operation and maintenance agreement executed on August 14, 2013 by and between District and SSCWD (“O&M Agreement”), and last renewed for a five-year term on July 26, 2023, including as it may be amended, replaced, or renewed in the future; and F. WHEREAS, the Parties, now including SJB, have determined that it is in their mutual interests to continue implementing the Plans in the Urban Area (“UA”) under this Agreement and to assure the District’s recovery of the capital costs of the Treatment Facilities

2 by equitably allocating the costs of those Treatment Facilities among Hollister, SSCWD, and now SJB (collectively, “Wholesale Customers”, or individually, “Wholesale Customer”); and G. WHEREAS, the Parties have determined that it is in their mutual interests to terminate the Former Agreement and replace it with this Agreement, to add SJB as a Party, and to update the terms of the Former Agreement to reflect developments since 2013; and H. WHEREAS, the Parties have determined that it is in their mutual interest to also include in this Agreement terms and conditions to account for the capital costs and the operation and maintenance of a project to improve water supply reliability for the region, the Accelerated Drought Response Project (“ADRoP”); and
I. WHEREAS, the Parties contemplate the construction of a transmission pipeline to provide treated water to SJB’s area of service, the full costs of which shall be incurred and paid solely by SJB, and the construction, operation, and maintenance costs of which shall be subject to a separate agreement; and
J. WHEREAS, District holds water entitlements necessary for the provision of wholesale treated water to Wholesale Customers; and
K. WHEREAS, pursuant to this Agreement, District will provide wholesale treated water to Wholesale Customers for their use in supplement to their existing groundwater wells to provide municipal and industrial (“M&I”) water service within Wholesale Customers’ respective service areas.

NOW THEREFORE, in consideration of the terms and conditions contained herein and the covenants entered into herein, the Parties hereby agree as follows:

ARTICLE 1: DEFINED TERMS
Defined terms are indicated by quotation marks, and sometimes also with parentheses, when first used in this Agreement, and the defined terms are thereafter capitalized. Such defined terms shall have the meaning that is provided when the term is first used, regardless of whether the term is defined in the Explanatory Recitals or in Articles 2 through 16 herein.

ARTICLE 2: TERM OF AGREEMENT
Upon execution of this Agreement by all of the Parties, the Agreement shall become effective and shall remain in force until the capital costs of the Treatment Facilities and ADRoP described in Article 5 herein, including applicable interest, have been fully recovered by District, or until 30 years after its execution, whichever period shall be longer. Thereafter, this Agreement shall be

3 automatically renewed as to each Wholesale Customer for subsequent 10-year terms unless a written request for non-renewal is delivered by a Party to each of the other Parties to this Agreement no later than twelve (12) months prior to the expiration of any renewal period. Notice of non-renewal given by one Wholesale Customer shall not affect the right of the other Wholesale Customers to renew this Agreement.

ARTICLE 3: QUANTITY OF TREATED WATER TO BE PROVIDED

3.1. Amount of Delivery
District, subject to supply limitations and exercise of District’s discretion each year as described herein and in Articles 3.3 and 3.4 herein, shall deliver to the Lessalt WTP and the West Hills WTP an aggregate of 5,060 acre-feet (“AF”) annually of untreated water, at an average rate of

4.25 million gallons per day (“mgd”) for treatment and subsequent delivery to Wholesale Customers for distribution to their municipal and industrial customers, provided however, that District’s obligation shall be limited to a maximum delivery rate of no more than 6.5 mgd. District will retain discretion concerning the allocation of water deliveries between the Lessalt WTP and West Hills WTP, respectively, but shall seek input from Wholesale Customers concerning their desired allocations. Water will be deemed delivered by the District to a Wholesale Customer when it passes into the transmission pipelines at the Lessalt WTP or the West Hills WTP used for the conveyance of water to that Wholesale Customer. The quantity delivered will be as measured by the meter on each such transmission pipeline.

3.2. Sources of Water
The Parties acknowledge that District has the following sources of untreated water available to satisfy its obligations under this Agreement:
(a) Central Valley Project Water
M&I water delivered to District from the federal Central Valley Project (“CVP”) through the San Luis Reservoir, San Felipe Project, Hollister Conduit and San Justo Reservoir pursuant to Contract No. 8-07-20-W0130A-P between the United States and District, as amended and supplemented (“CVP Contract”); and
(b) Water Transfers
Episodic purchases of imported surface water, including permanent sales and long-term transfers, out-of-basin banked water, and spot market purchases that can, from time to time, be supplied to District through the San Luis Reservoir, San Felipe Project, Hollister Conduit and San Justo Reservoir; and

4 (c) Groundwater
Groundwater supplies and surface diversions that District may develop from subbasins to the north of the HUA, including any supplies that may become available through a North County Groundwater Bank generally described in the Master Plan and coordinated Plan but yet to be developed, and subject to uncertainty due to unknown results of field testing, regulatory and permitting conditions, and operational limitations.

3.3. Selection of Water Sources and Schedule of Water Demands District shall prepare and provide to Wholesale Customers a written projection estimating the quantity of water to be supplied that year from each of the sources of supply described in Article

3.2 above, by March 1 of each year, or within 14 days of the initial CVP allocation, whichever is later. Within 14 days of receiving District’s written projection, each Wholesale Customer shall provide to District a schedule of its estimated monthly water demand for that year. The actual quantity of water supplied from each source may vary from District’s projection due to hydrologic conditions, pumping restrictions in the Sacramento-San Joaquin Delta, aquifer conditions, or other unanticipated factors affecting availability or cost. The choice of how much water to deliver each year from each source of supply, including whether District supplements its sources of supply using ADRoP, described in Article 5.2 herein, is a matter within District’s sole discretion.

Wholesale Customers acknowledge that the CVP Contract supplies available to them are subject to the entitlements and allocations established annually by District.

3.4. Limitations in Supply
The Wholesale Customers acknowledge that District has no control over hydrologic conditions, administrative decisions affecting the Delta, or other factors that may reduce the availability and delivery of imported surface water supplies from the San Luis Reservoir and the San Felipe Project. District shall determine the total available supply each year. District shall work together with Wholesale Customers to maximize District’s entitlement to CVP M&I deliveries under any Water Shortage Policy adopted by the U.S. Bureau of Reclamation for water allocation during times of shortage. If, in any year, CVP Contract supplies and other imported supplies are reduced to a level that prevents District from delivering to Wholesale Customers the full amount specified in Article 3.1 above, no liability shall accrue against District or any of its officers, agents or employees for any damage, direct or indirect, arising therefrom. In the event that District is unable to deliver the full amount specified in Article 3.1 above in any year, the total available supply shall be allocated between the Lessalt WTP and West Hills WTP in proportion to their respective projected annual production requirements provided to District pursuant to

5 Article 3.3 above. The Wholesale Customers further acknowledge that District has an obligation to deliver water to M&I customers other than Wholesale Customers. District shall utilize the water shortage contingency plan included in its most recent urban water management plan adopted pursuant to the Urban Water Management Planning Act (Water Code section 10610 et seq.), as the water shortage contingency plan may be amended and updated from time to time, to allocate water during a condition of water shortage and shall reduce allocations to Wholesale Customers and to such other M&I customers by the same percentage.

3.5. Water Quality
(a) Water Quality Goals
District shall have the sole discretion as to the sources of water used for treated water deliveries in any year, but shall exercise such discretion only after consultation with the Advisory Committee, as provided in Article 4.1 herein with the goal of achieving, in combination with groundwater from the municipal wells of Hollister, SSCWD, and SJB, drinking water of the lowest hardness and mineral content practicable, which, in any event, shall meet all regulatory requirements for drinking water. Water quality goals not included in this Agreement shall be identified in future Water Master Plans and reflected by an amendment to this Agreement. The Water Quality Goals for drinking water are agreed to be both:
(i) TDS Concentration
A Total Dissolved Solids (TDS) concentration target of 500 milligrams per liter (mg/L) but not greater than 700 mg/L; and
(ii) Hardness
A hardness of not greater than 120 mg/L (calcium carbonate). (b) Future Projects to Meet Water Quality Goals
The Parties acknowledge that these Water Quality Goals will not be fully achieved solely through the Treatment Facilities as described herein. In furtherance of achieving the Water Quality Goals, the Parties agree to use their best efforts to plan and implement additional projects in the future to acquire additional surface water supplies and/or implement additional groundwater demineralization projects pursuant to separate agreements. Any such separate agreement shall be among the District and those Wholesale Customers who commit to, and contribute towards, the additional funding for such projects.

6 (c) District Responsible for Quality of Treated Water Delivered Except as otherwise provided in the O&M Agreement, District shall be responsible for meeting treated water quality requirements established by the California Department of Public Health (“DPH”) Drinking Water Program, shall provide required reports to DPH and shall be responsible for any fines resulting from violation of water quality parameters due to the quality of water produced at the Lessalt WTP and West Hills WTP, provided, however, that the amount of any such fines that are not a result of District’s negligence may be recovered as part of the Treated Water Component of rates. Wholesale Customers shall be responsible for meeting water quality requirements in their respective portions of the water distribution systems and for reports required by DPH regarding such distribution systems.

ARTICLE 4: ADVISORY COMMITTEE
Upon execution of this Agreement, the Parties shall form a four-member Advisory Committee composed of one management representative of each Party, who shall serve at the pleasure of the elected body of such Party. Changes in the designated representatives may be made only upon written notice to each other Party at the addresses set forth in Article 14.

4.1. Function of Advisory Committee
The function of the Advisory Committee will be to facilitate communication among the Parties and to coordinate responses to mutual concerns regarding water supply, water quality, and related issues including the selection of sources of water as such sources influence costs and quality. Potential activities to be addressed include the design, permitting, construction, operation, maintenance, repair and replacement of surface water treatment plants, including, but not limited to, the operation and maintenance of the Treatment Facilities; ADRoP; regulatory requirements for drinking water quality; response to droughts or other water supply disruptions; and allocation of treated surface water supplies in times of shortage, emergencies or other unique needs of the Parties that may arise. The communication, coordination, and cooperation provided for by the establishment of the Advisory Committee shall extend to all provisions of the Agreement, provided that, each Party shall retain exclusive decision making authority for all actions, opinions and determinations to be made concerning facilities owned by that Party.

4.2. Limit of Authority of Advisory Committee
Final responsibility and discretion for any decisions relating to construction, operation or maintenance of a distribution system or facility shall remain with the Party that owns the affected distribution system or facility, including that decisions relating to the operation or expansion of

7 the Treatment Facilities and the West Hills transmission pipeline shall be the responsibility of District unless otherwise provided in the O&M Agreement. The Advisory Committee shall be consulted by District each year concerning District’s preliminary projection of the selection and proportions of water to be used from the various sources available to District during that year, and shall be advised by District of the potential impacts of such selection and proportions on rates and water quality. The Parties will strive to agree on such selection and proportions of water sources, but District shall have the ultimate authority and discretion on these issues in the event that agreement cannot be reached by April 1.

4.3. Meetings of the Advisory Committee
Regular meetings of the Advisory Committee shall be held quarterly in the months of February, May, August and October of each year at a date and time agreed upon by all Parties. However, special meetings may be called by any Party on ten days’ written notice to each other Party, as necessary to address specific subjects related to the implementation of this Agreement, or upon 72 hours prior written notice in the event of circumstances that require a decision before a regularly noticed meeting can be called. It is anticipated that a special meeting may need to be called in April of each year so that the Parties can consider proposed budgets for the ensuing fiscal year. Agendas for all meetings, together with documents to be considered at such meetings, shall be provided to each member at least one week before each meeting of the Advisory Committee, or in the event of emergency, as soon as possible before a meeting.

ARTICLE 5: TREATMENT FACILITIES AND ADROP

5.1. TREATMENT FACILITIES
(a) District Commitment of Funds
District has advanced the amount of $34,000,000 to fund the completion of the Treatment Facilities described below in Articles 5.1(b) and (c), which included the design, permitting and construction of the Treatment Facilities. Pursuant to the payment structure and related terms as provided in Article 6 herein, Wholesale Customers have agreed to repay District for the full cost of design, construction and financing of said Treatment Facilities. (b) Lessalt WTP
(1) Location and Capacity
The Lessalt WTP is located at the intersection of Fairview Road and Sunnyslope Road in San Benito County. It currently has a production capacity of approximately 2 mgd.

8 (2) Included Costs
The costs of the Lessalt Upgrade Project incurred after September 1, 2011, including but not limited to design, engineering, environmental review, permitting, construction and related legal expenses, have been borne by District and shall be recovered from Wholesale Customers as described in Article 6 hereof.
(3) Pipeline to High Pressure Zone
A dedicated distribution pipeline was constructed and financed by District to serve the “High Pressure Zone” from the Lessalt WTP, for which the costs of such construction, including design, engineering, land acquisition, permitting, environmental review and legal expenses, have been borne by District and shall be recovered from Wholesale Customers as described in Article 6 hereof.
(4) Ownership
The Lessalt WTP, together with all real property and related appurtenances, is owned by District, with the exception of the distribution pipeline described in Article 5.2(b)(3) above which is owned by SSCWD.
(c) West Hills WTP
(1) Location and Capacity
The West Hills WTP is located on the western side of the City of Hollister, north of Union Road.

The West Hills WTP has a capacity of 4.5 mgd and is designed for possible future expansion to 9 mgd. As of the date this Agreement is executed, the Parties expect that the West Hills WTP will be expanded to 6.75 mgd to accommodate the component of ADRoP described in Article

5.2(d)(1) herein.
(2) Included Capital Costs
The costs of the West Hills WTP, including but not limited to design, engineering, environmental review, permitting, construction and related legal expenses, have been borne by District and shall be recovered from Wholesale Customers as described in Article 6 hereof. (3) Ownership
The West Hill WTP, together with all real property and related appurtenances necessary to its operation, including the water transmission line to the connection point of Hollister ’s distribution system at Nash Road, is owned by District.

9 (d) Non-Conveyance Covenant
District covenants that, during the term of this Agreement or subsequent extensions of this Agreement, it shall not convey title to any such real property or to any portion of the Treatment Facilities without amendment to this Agreement.
(e) Operation and Maintenance of Treatment Facilities
(1) Operation Pursuant to Operation and Maintenance Agreement The Treatment Facilities, including the Lessalt WTP, the West Hills WTP and the distribution mains between the treatment plants and each Wholesale Customer ’s distribution system, shall be operated and maintained pursuant to the O&M Agreement. (2) Wholesale Customers Responsible for Operation of Distribution Pipelines
Wholesale Customers shall be responsible for meeting all statutory and regulatory requirements related to the operation of their respective water distribution systems, including water quality, and shall make all required reports to the DPH and any other applicable entities. Each Wholesale Customer shall ensure that each water service connection in its service area is metered and shall impose on its customers all water conservation requirements imposed on District by state or federal law and by District’s CVP Contract, and shall provide District with such information as may be requested by District so that District can comply with such requirements.
(3) District Responsible for WTP Inflow and Outflow
District shall provide and maintain meters, valves and controls, and instrumentation at connections to the Hollister Conduit, at the turnouts to the Lessalt WTP and West Hills WTP, and at the outlets of the Lessalt WTP and West Hills WTP where the outlet connects to Wholesale Customers’ distribution systems. District shall have the meters tested and calibrated annually. A copy of the annual test report will be provided to Wholesale Customers. (f) Wholesale Customers’ Respective Shares of Treatment Capacity The respective annual treatment capacity of the Treatment Facilities reserved for each Wholesale Customer shall be as follows:

Hollister: Forty-six percent (46%).

SSCWD: Forty-six percent (46%).

SJB: Eight percent (8%).

There shall be no changes in a Wholesale Customer ’s respective percentage of the treatment capacity absent a separate agreement or an amendment to this Agreement.

10 5.2. ADROP
(a) Project Description and Capacity
The Accelerated Drought Response Project (“ADRoP”) includes the expansion of the West Hills WTP to a capacity of 6.75 mgd (“West Hills Expansion”); construction and development of up to five aquifer storage and recovery well sites, including the wells, pumps, disinfection building, electrical cabinets, transformers, appurtenant structures, and security fences (“ASR Wells”); and the installation of water transmission pipelines to convey recharge and recovery water to and from the ASR Wells (“ASR Pipelines”). ADRoP is expected to have the capacity to inject, store, and recover up to 2,700 acre-feet of water each year. ADRoP, including the associated costs and funding, is described further in Exhibit B hereto.
(b) Included Capital Costs
The costs of ADRoP will include, but are not limited to, design, engineering, environmental review, permitting, construction and related legal expenses, for which District, at District’s discretion, will seek bond revenues or advance such costs from District’s undesignated reserves. The costs of ADRoP shall be recovered by District from Wholesale Customers as described in Article 6 herein.
(c) Grant Funding
District has been awarded three grants, totaling $20,000,000, to fund the construction and implementation of ADRoP. District received $1,800,000 from the California Department of Water Resources (“DWR”) funded through the Integrated Regional Water Management program; $11,500,000 from DWR funded through the Sustainable Groundwater Management Grant Program; and $6,700,000 from the U.S. Bureau of Reclamation funded through the Small Surface Water and Groundwater Storage Projects program. Such grant funding, including any grants that may be secured in the future for funding ADRoP, shall offset Wholesale Customers’ repayment obligations described in Article 6.3(a)(2). Any capital costs not recovered through grant funding shall be recovered from Wholesale Customers as described in Article 6. (d) Operation and Maintenance of ADRoP
(1) Expansion of West Hills WTP
Upon completion of the West Hills Expansion, the West Hills WTP, as expanded, shall continue to be operated and maintained pursuant to the O&M Agreement.

11 (2) ASR Wells and Pipelines
The construction, operation, and maintenance of the ASR Wells and ASR Pipelines may be operated and maintained under a separate operation and maintenance agreement. Whether the ASR Wells and ASR Pipelines are operated under the existing O&M Agreement or a separate agreement shall be determined at District’s sole discretion. (e) Ownership of ADRoP
All buildings, storage tanks, pipelines, structures, improvements, appurtenances, and fixtures associated with ADRoP, including the West Hills Expansion, ASR Wells, and ASR Pipelines, shall be owned by District.

5.3. CAPITAL IMPROVEMENTS
(a) Capital Improvements to Comply with Law or Regulation District shall have the responsibility to construct additional capital improvements for the Treatment Facilities and ADRoP necessary to comply with law or regulation, up to a total expenditure equal to the amount then accumulated in a fund for such improvements (“Capital Replacement Reserve”), provided that this responsibility shall not require the District to expand the capacity of the Treatment Facilities beyond the level necessary to meet District’s obligation to treat 5,060 AF of untreated water each year as described in Article 3.1 herein. Should the costs for such required capital improvements exceed the amount then accumulated in the Capital Replacement Reserve, District shall be required to acquire funding at the best available rate. If District must acquire third-party financing, each Wholesale Customer agrees to pay District its actual true principal and interest costs, plus 25 basis points, in equal monthly installments on a twenty-year amortization schedule. District shall provide notice to Wholesale Customers at least six months prior to acquiring such third-party financing to the extent reasonably practicable under the circumstances.
(b) Capital Improvements to Accommodate Future Growth Demands District shall not be obligated to plan, design or construct future improvements for increased capacity of the Treatment Facilities or ADRoP or of raw water supply to the Treatment Facilities to accommodate future growth and demand, nor shall Wholesale Customers be obligated to pay for such improvements. Notwithstanding, District and one or more Wholesale Customer may agree to assume such obligations through a separate agreement, or, if all Parties agree, by an amendment to this Agreement.

12 ARTICLE 6: PAYMENT FOR TREATED WATER SERVICE

6.1. Wholesale Customers’ Payment Obligations and Covenants The full cost of treated water service for which Wholesale Customers shall collectively be obligated to pay District shall include the whole of the Capital Costs, Fixed Operational Costs, and Variable Operational Costs of the Treatment Facilities and ADRoP, which are comprised of the various cost components set forth herein in Article 6.3, subparagraphs (a) through (c) (“Full Costs”). With respect to the cost components that obligate Wholesale Customers to pay costs based upon their respective share of treatment capacity, Article 5.1(f) herein shall govern each Wholesale Customer ’s respective share. Wholesale Customers confirm, represent, and warrant to maintain fully effective water rates sufficient to meet Wholesale Customers’ payment obligations hereunder during the term of the Agreement.

6.2. Wholesale Customers’ Obligations and Delivery of Water No Wholesale Customer shall be required to take delivery of the full amount of water it has requested from District pursuant to Article 3.3 herein. Provided, however, that each Wholesale Customer shall remain obligated to pay the whole of their respective amount of the Capital Costs and Fixed Operational Costs described in Article 6.3 herein each year, regardless of whether they request or accept delivery of water. If a Wholesale Customer requests water for a given year, regardless of whether the Wholesale Customer takes delivery of the full requested quantity, that Wholesale Customer shall remain obligated to pay at least seventy-five percent (75%) of the Variable Operational Costs, described in Article 6.3 herein, for the quantity of water the Wholesale Customer requested.

6.3. Costs to Be Paid to District
Except as provided in Article 6.3(f) herein, each Wholesale Customer shall make monthly payments to District for its respective percentage of the Full Cost based on the structure of payment obligations and cost components outlined in subparagraphs (a) through (c) below. For purposes of subparagraphs (b) and (c) below, the Wholesale Customers’ obligation to pay Fixed Operational Costs and Variable Operational Costs for the Treatment Facilities shall include those costs associated with the West Hills WTP following completion of the West Hills Expansion. A description of each cost component of the Full Cost, including the methodology for calculating each, is described further in Exhibit C hereto.

13 (a) Capital Costs
Wholesale Customers shall pay the capital costs for the Treatment Facilities and ADRoP. Such capital costs include, but are not limited to, the cost of developing, permitting, preparing environmental review documents, designing, bidding, and constructing, including legal consultation (“Capital Costs”), for the Treatment Facilities and ADRoP. Wholesale Customers agree to reimburse District for the Capital Costs pursuant to the cost components set forth herein.
(1) Capital Treatment Component – Treatment Facilities The Capital Treatment Component shall be calculated such that when paid through completion of the Wholesale Customer’s amortized monthly installment payments (“Capital Recovery Schedule”), District shall have recovered the entirety of the Capital Costs for the Treatment Facilities. The amount payable by each Wholesale Customer shall be based on the percentage of the treatment capacity to which each Wholesale Customer is entitled pursuant to this Agreement. Subject to Article 6.3(f), the Capital Recovery Schedule, set forth in Exhibit A hereto, shall describe the payment schedule for the Capital Treatment Component Payable by each Wholesale Customer.
(2) Reliability Fee Component – ADRoP
The Reliability Fee Component shall be based on an amount determined by District to be sufficient for District to recover any remaining Capital Costs for ADRoP not recovered through grant funding, which shall be derived via bond financing or from District’s undesignated reserves, the option of which shall be at District’s sole discretion. In the event District issues bonds to cover the remaining Capital Costs associated with ADRoP, either in whole or in part, the Reliability Fee Component shall include repayment of the principal of the bonds but shall not include any applicable interest accrued on those bonds, and payment of such interest shall remain District’s obligation. The amount of the Reliability Fee Component payable by each Wholesale Customer shall be on a per-acre-foot basis of treated water delivered to each Wholesale Customer, including that District shall also collect the Reliability Fee Component from each of District’s other M&I customers, including those not receiving water pursuant to this Agreement. The Wholesale Customers’ obligation to pay the Reliability Fee Component shall be terminated as of the date that District has collected the whole of the unfunded Capital Costs associated with ADRoP, excluding interest.

14 (3) Capital Replacement Reserve Component
The Capital Replacement Reserve Component shall be established and maintained in a manner consistent with District’s Policy on Restriction and Designation of Net Assets/Cash (“Reserve Policy”), attached hereto as Exhibit F, including as that Policy may be amended from time to time by District upon 30 days’ notice to Wholesale Customers. As set forth in the Reserve Policy, last adopted on May 28, 2025, the amount collected through the Capital Replacement Reserve Component will be used only for capital replacement of assets to account for depreciation of the Treatment Facilities, and funds so expended will be replaced through subsequent contributions. The obligation of Hollister and SSCWD to pay the Capital Replacement Reserve Component under this Agreement shall be postponed until SJB has fully paid its respective share of the Capital Replacement Reserve Component, upon which Hollister and SSCWD shall begin payment of their respective shares. (b) Fixed Operational Costs
Wholesale Customers shall pay the fixed operational costs for the Treatment Facilities. "Fixed Operational Costs" consist of the operation and maintenance expenses associated with the Treatment Facilities that do not vary or depend on the amount of water that is treated or delivered. Each year, when District makes its preliminary supply projection as described in Article 3.3 herein, District shall identify the anticipated costs for each component of the Fixed Operational Costs. The amount of the aggregate Fixed Operational Costs payable to District by each Wholesale Customer, comprised of the cost components below, shall be based on the percentage of the treatment capacity to which each Wholesale Customer is entitled pursuant to this Agreement.
(1) Administrative Fee Component
The Administrative Fee Component shall be based on an amount equal to five percent (5%) of District’s total payroll expenses, enabling District to recover a share of its costs of management, supervision, accounting, and the legal and general administrative costs of owning, managing, and operating the Treatment Facilities and ADRoP.

15 (2) Direct Cost Component
The Direct Cost Component shall be based on the amount necessary for District to recover the fixed costs of ownership of the Treatment Facilities, including property insurance, fees imposed by the California Department of Public Health, and other similar costs of ownership.

(3) Fixed Treatment Component
The Fixed Treatment Component shall be based on the amount necessary for District to recover the fixed costs of treating water using the Treatment Facilities. (c) Variable Operational Costs
Wholesale Customers shall pay the variable operational costs for the Treatment Facilities and ADRoP. "Variable Operational Costs" consist of the operation and maintenance expenses associated with the Treatment Facilities and ADRoP that vary depending upon the volume of water that is treated and delivered. The amount of the aggregate Variable Operational Costs payable to District by each Wholesale Customer, comprised of the cost components below, shall be based on the percentage of treated water delivered to each Wholesale Customer pursuant to this Agreement.
(1) Water Supply Component
The Water Supply Component shall be based on the amount necessary for District to obtain raw water for the ensuing year from the Central Valley Project (CVP) and other sources delivered to the Treatment Facilities. District’s revenue requirements shall be determined in conformity with District’s normal rate-setting process, which District reserves the right to modify upon one year ’s notice to Wholesale Customers.

Shortage Conditions – Additional Costs: During periods of shortage, should the actual cost of raw water exceed the amount projected by District in its normal rate-setting process, District shall consult with the Advisory Committee to determine if additional costs shall be incurred.

Should the recommendation of the Advisory Committee be to incur additional costs, such costs shall be borne by Wholesale Customers and recovered through the Water Supply Component.

Recovery of such additional costs shall be included in the Water Supply Component of rates and charges invoiced to Wholesale Customers, amortized over a twelve-month period beginning on the date when District obligates itself to incur such additional costs.

Requests for Additional Water: In any year, any Wholesale Customer may request additional water to be delivered that year, and District shall accommodate the request provided it determines that additional water is available and delivery of the additional water does not affect

16 the other Wholesale Customers’ costs or allocation of water for that year. All costs incurred by District to deliver such requested additional water shall be borne by the Wholesale Customer or Wholesale Customers making the request and recovered through the Water Supply Component. (2) Variable Treatment Component
The Variable Treatment Component shall be based on the amount necessary for District to recover the Variable Operational Costs of treating raw water using the Treatment Facilities and for delivering treated water to the ASR Wells for purposes of ADRoP. (d) ADRoP – Deferred Payment of Costs Incurred During Storage Years Notwithstanding the foregoing, in years when District’s total water supply is determined by District to be sufficient to store water using the ASR Wells, payment for any costs associated with the Water Supply Component or Variable Treatment Component attributable to water stored using the ASR Wells and ASR Pipelines shall be deferred and those costs shall be borne by District until such time that any stored water is recovered from the ASR Wells and delivered to Wholesale Customers. District shall account and bill for water recovered from the ASR Wells in the same manner it would account and bill for transfer water acquired by District, and District shall recover such deferred payments through the Water Supply Component. District shall also recover such unpaid costs for water stored using the ASR Wells and ASR Pipelines from its other M&I customers, including those not receiving water pursuant to this Agreement, in the same manner as from the Wholesale Customers.
(e) Extraordinary Operations and Maintenance
Extraordinary operations and maintenance costs outside of the anticipated annual budgeted amount shall be discussed by the Advisory Committee before District commits to such costs or includes them in a Wholesale Customer ’s invoice. Nevertheless, if District determines after discussion with the Advisory Committee that such costs are necessary to provide a safe reliable source of potable water that meets all regulatory requirements, or if such costs are required to provide for the continuing safe operation of the Treatment Facilities or ADRoP, District shall have authority to incur such costs and include them in the Wholesale Customers’ invoice, itemizing such costs under the cost component District determines is appropriate, amortized over a 12 month period.
(f) SJB’s Deferred Payment Obligations
Notwithstanding the foregoing payment obligations, SJB shall not be obligated to pay any cost components set forth in Article 6.3 herein until (i) SJB first takes delivery of water pursuant to this Agreement, or (ii) two (2) years has passed from the date of execution of this Agreement,

17 whichever shall occur first (the “Payment Commencement Date”), provided, however, that SJB shall not be obligated to pay Variable Operational Costs or the Reliability Fee Component until SJB first takes delivery water. During the period from the date of execution of this Agreement to the Payment Commencement Date, Hollister and SSCWD shall collectively be obligated to pay the whole of the Fixed Operational Costs, with each paying one-half of such costs. On the Payment Commencement Date, or within a reasonable time thereafter, District shall prepare an updated Capital Recovery Schedule to incorporate SJB’s obligation to pay the whole of its respective share of the Capital Treatment Component. The updated Capital Recovery Schedule shall also reflect the contribution applied against SJB’s payment obligations as set forth in Article 6.5(b) herein. District shall provide each Wholesale Customer a reasonable time to review the updated Capital Recovery Schedule. Upon the approval of the updated Capital Recovery Schedule by all Parties, which approval shall not be unreasonably withheld, the updated Capital Recovery Schedule shall replace and supersede the original Capital Recovery Schedule set forth in Exhibit A hereto without the need for a formal amendment.

6.4. Financial Covenants
(a) Adequacy of Wholesale Customers’ Revenue Sources
Wholesale Customers shall maintain adequate revenue sources to pay the whole of their respective share of the annual Full Cost of treated water service during the term of this Agreement.
(b) Financial Reporting Requirements
The financial reporting requirements shall be as follows: (i) Each Party shall provide audited financial statements to each other Party within nine (9) months of the fiscal year end, and (ii) each Wholesale Customer shall provide to District an annual budget for its respective water enterprise within 30 days of its approval, demonstrating compliance with Wholesale Customer ’s financial obligation set forth in Article 6.4(a) herein. (c) Wholesale Customers’ Pledge of Revenues
In order to secure the payment of the Capital Treatment Component payable by Wholesale Customers to the District, each Wholesale Customer hereby pledges its “Net Revenues”, hereby defined as the amount equal to all of the gross revenues received by Wholesale Customers during any period, less the amount required by the Wholesale Customer to pay for all Fixed Operational Costs and Variable Operational Costs which are payable during any such period.

Subject to preexisting pledges or liens on the Wholesale Customers’ Net Revenues, this pledge shall constitute a first pledge of and charge and lien upon the Wholesale Customers’ Net

18 Revenues for the repayment of the Capital Treatment Component and shall be valid and binding from and after execution of this Agreement, without any physical delivery thereof or further act. The pledge to District under this Paragraph shall be on parity with any pledges or liens against the Wholesale Customers’ revenues prior in time to the execution of this Agreement. After execution of this Agreement and upon written request by any Wholesale Customer, District shall promptly consider, in good faith, any request by the Wholesale Customer that District consent to subordination or other modification of District’s secured position to the extent that subordination or other modification does not materially impair District’s secured position, and shall not unreasonably withhold consent to that request.

6.5. Billing and Payment
(a) Invoices
District will issue invoices to each Wholesale Customer by the 10th day of each month. The invoices shall show the total amount due, and the amounts owed by Wholesale Customers for Capital Costs, Fixed Operational Costs, and Variable Operational Costs, separately stated in the categories and components described above and illustrated in Exhibit C attached hereto. (b) Non-Reimbursable District Contribution - SJB
District shall contribute a non-reimbursable contribution to be applied against SJB’s payment obligations for the Full Cost of treated water service in a total aggregate amount of $869,565. (c) Payment
Wholesale Customers shall remit payments due and owing after application of available credits to District on or before the 15th of the month following receipt of the invoice. District may assess a late charge to a Wholesale Customer that fails to make full and timely payment. The late charge payable to District shall be ten percent (10%) of the amount of the late payment that is overdue for ten (10) or more days. The late charge shall increase by an additional ten percent (10%) each year that the late payment remains outstanding. Any amount in dispute must be paid pending resolution of the disputed amount. A dispute concerning the amount owed on an invoice does not relieve a Wholesale Customer of the obligation to pay the full invoice amount in a timely manner.

6.6. Accounting

19 (a) Application of Wholesale Customer Payments
In the event a Wholesale Customer ’s payment for any given invoice is insufficient to meet the Wholesale Customer ’s obligation to pay the Full Cost of treated water service, District shall apply the revenue received for that invoice to satisfy the Wholesale Customer ’s obligation, in whole or in part, for payment of any cost component of the Full Cost of treated water service, the allocation of which is to be determined at District’s sole discretion. (b) Account Management
District shall keep its accounts pertaining to this Agreement separate and distinct from its general funds, and consistent with generally accepted accounting principles. District shall, each year, upon request of a Wholesale Customer, provide the Wholesale Customer a detailed accounting of costs and expenses for the Treatment Facilities and ADRoP, disposition of all Wholesale Customer revenues, and a summary of all water deliveries made during the year.

Wholesale Customers and District shall enter into good faith negotiations to resolve any discrepancies or disputes relating to accountings, reports, or records of use.

ARTICLE 7: DISPUTES AND ATTORNEYS’ FEES
If a dispute arises between the Parties regarding breach of this Agreement or interpretation of any term of this Agreement, the Parties shall first attempt to resolve the dispute by good faith negotiation, followed by mediation if negotiation fails to resolve the dispute. The steps for dispute resolution agreed by the Parties are as follows:

Step One:

The managers or other persons designated by the disputing Parties will negotiate on behalf of the entities they represent. The nature of the dispute shall be reduced to writing by each such Party together with the relevant facts asserted and shall be presented to the manager of the other Party who shall then meet and attempt to resolve the issue. If the dispute is resolved at this step, there shall be a written memorialization of such resolution, signed by each disputing Party’s manager and ratified by each Party which shall be binding upon the Parties.

Step Two:

If the dispute cannot be resolved within ten (10) days at Step One, the disputing Parties shall submit the matter to non-binding mediation. The dispute shall be heard by a mutually acceptable mediator and any common costs of mediation shall be borne equally by the disputing Parties. The Parties shall each bear their own costs and fees therefore. If the issue is

20 resolved at this step, a written memorialization of such resolution shall be signed by each manager and approved by the respective disputing Party.

Step Three:

If a dispute cannot be resolved through negotiation or mediation, a disputing Party may bring an action in the Superior Court of the State of California to resolve the issue. The prevailing Party in such an action shall be entitled to its reasonable attorney fees as may be awarded by the trial court or upon appeal.

ARTICLE 8: LIMITATION OF LIABILITY
Wholesale Customers and each of them recognize and agree that no liability for damages shall attach to District, its officers, employees, agents and representatives hereunder on account of any failure to accurately anticipate availability of water, or because of actual failure of supply due to any damage to District equipment, pipelines, or facilities caused by vandalism, war, riot, invasion, fire, governmental restrictions, strikes, inability to procure supplies, Acts of God, or other causes beyond its control. Wholesale Customers and each of them shall indemnify, hold District harmless from and defend District against all claims of damage to persons or property or regulatory enforcement actions that may be asserted due to conditions within Wholesale Customers’ distribution system or systems that are beyond District’s control. District shall indemnify, hold Wholesale Customers and each of them harmless from, and defend Wholesale Customers and each of them against all claims of damage to persons or property or regulatory enforcement actions that are a result of District’s negligence that may be asserted due to conditions within District’s distribution system or systems that are beyond the control of Wholesale Customers and each of them.

ARTICLE 9: TERMINATION
This Agreement is conditioned upon the faithful performance by all Parties of all the terms and provisions herein. Pursuant to Article 10, any Party may give notice of termination for breach of a material term of this Agreement and shall thereupon commence dispute resolution pursuant to Article 7; one of the remedies in dispute resolution may be termination of the Agreement.

ARTICLE 10: DEFAULT

10.1. Notice and Right to Cure
Upon default of any of the terms of this Agreement including but not limited to failure to make required payments, violation of any material provision of this Agreement, law, or regulation, the

21 non-defaulting Party or Parties may terminate this Agreement by giving a 180-day notice; however, during the 180-day notice period, the defaulting Party shall have the right to cure any such default. The right-to-cure period may be extended upon mutual written agreement of all Parties.

10.2. Consequences of Default
If a Wholesale Customer defaults on its obligations under this Agreement, it will be required to pay all resulting direct damages including its respective share of all remaining Capital Costs incurred by District for development and construction of the Treatment Facilities and a percentage of the outstanding Capital Costs for ADRoP based on its respective share of treatment capacity as described in Article 5.1(f) herein, including interest, in addition to its financial obligations to District that remain unpaid as of the date of the default, together with District’s reasonable attorney’s fees incurred in a successful enforcement of the Agreement.

Should any incidence of default not be resolved within one hundred eighty (180) days as same may be extended, all applicable legal and equitable remedies shall be available to the Parties, including an injunction requiring a defaulting Party that operates the Treatment Facilities under contract to continue such operations on a time and materials basis for no less than one year.

ARTICLE 11: AMENDMENTS

11.1. Amendment Only by Writing
This Agreement may be amended only by a writing executed by all Parties unless expressly provided otherwise herein.

11.2. Changes in Parties’ Service Areas
The Parties hereby agree that any change in a Wholesale Customer’s service area shall modify Exhibit D hereto upon such Wholesale Customer ’s submission of a map showing the adjusted service area. Any area added to a Wholesale Customer ’s Service Area that receives treated water pursuant to this Agreement must be within the boundaries of District’s Zone 6, as shown on Exhibit E, and as Zone 6 may be amended from time to time. Upon any change in the boundaries of Zone 6, Wholesale Customers shall be provided an updated map of Zone 6 without the need for formal amendment of this Agreement.

22 ARTICLE 12: SUCCESSORS AND ASSIGNS
Subject to the provisions of Article 13 herein, this Agreement and all terms and conditions herein shall inure to the benefit of and be binding upon the successors and assigns of the Parties hereto.

ARTICLE 13: ASSIGNMENT
No assignment or transfer by a Wholesale Customer of the Agreement or any part thereof, or any rights hereunder or interest herein of a Wholesale Customer, shall be valid unless approved by District. Such approval by District shall not be unreasonably withheld.

ARTICLE 14: NOTICES
Any notice required under this Agreement shall be in writing and shall be effective three days after it is sent by United States mail, addressed to all Parties at the addresses set forth below, or as such addresses may be modified by a Party upon written notice to each other Party. A copy of the mailed notice shall also be provided to each other Party by electronic mail sent to the email addresses provided below:

SAN BENITO COUNTY WATER DISTRICT
30 Mansfield Road
Hollister, CA 95024
[email protected]

CITY OF HOLLISTER
375 Fifth Street
Hollister, CA 95023
[email protected]

SUNNYSLOPE COUNTY WATER DISTRICT
3570 Airline Highway
Hollister, CA 95023
[email protected]

CITY OF SAN JUAN BAUTISTA
311 2nd Street
San Juan Bautista, CA 95045
[email protected]

ARTICLE 15: NO THIRD PARTY BENEFICIARIES
Nothing in this Agreement is intended to confer any rights or remedies upon any person other than the Parties.

23 ARTICLE 16: OTHER PROVISIONS
Other provisions pertinent to this Agreement are as follows:

16.1. Integration
This Agreement embodies the entire agreement among the Parties relating to the subject matter hereof and supersedes all prior agreements and understandings, written or oral, relating to such subject matter, provided, however, that, in the event of dispute arising under this Agreement the Parties agree that the following documents may be referred to as an aid in determining the intent of the Parties in entering into this Agreement:
(a) Memorandum of Understanding, December 2004 and as amended in February 2008.
(b) Hollister Urban Area Water and Wastewater Master Plan, 2008. (c) Coordinated Water Supply and Treatment Agreement, 2010. (d) Water Supply and Treatment Agreement Statement of Intent, 2011. (e) Hollister Urban Area Water Supply and Treatment Agreement, 2013. (f) San Benito Urban Areas Water Supply and Treatment Master Plan Update, 2023.

16.2. Relationship of Parties
Each Party is an independent entity and is not the agent of any other Party, except as otherwise expressly provided in the Agreement or as otherwise agreed by the Parties in writing. This Agreement shall not be construed as constituting the Parties as partners or joint ventures for common law purposes, federal, state or local income tax purposes, or otherwise.

16.3. Controlling Law
This Agreement shall be construed, governed, and applied in accordance with the laws of the State of California.

16.4. Captions
Captions of the Articles and subsections of this Agreement are intended solely for the convenience of the Parties and shall not be used to discern of the meaning of the Agreement.

24 IN WITNESS WHEREOF, the Parties hereto hereby agree to be bound by the provisions, terms and covenants of this Agreement.

SAN BENITO COUNTY WATER DISTRICT

By: ____________________________________

(Print name):_____________________________

Its:_____________________________________

Date:_________________________

Attest:_________________________
Clerk, Board of Directors

CITY OF HOLLISTER

By: ____________________________________

(Print name):_____________________________

Its:_____________________________________

Date:_________________________

Attest:_________________________
Clerk, Hollister Council

SUNNYSLOPE COUNTY WATER DISTRICT

By: ____________________________________

(Print name):_____________________________

Its:_____________________________________

Date:_________________________

Attest:_________________________
Clerk of the Board

CITY OF SAN JUAN BAUTISTA

By: ____________________________________

(Print name):_____________________________

Its:_____________________________________

Date:_________________________

Attest:_________________________
Clerk, Hollister Council

25 EXHIBIT A: Capital Recovery Schedule

26

27

28

29

30 EXHIBIT B: Description of ADRoP and Associated Costs The Accelerated Drought Response Project (ADRoP) ADRoP is intended to provide water supply reliability for the District’s municipal and industrial customers during periods of extended drought. It is designed to take full advantage of water available to the District through its contract with the U.S. Bureau of Reclamation whereby excess surface water would be stored in the local aquifer in wet years for later use when allocations from the Central Valley Project combined with water previously stored by the District locally are insufficient to meet the District’s stated level of service goals. The decision to pursue ADRoP occurred through a collaborative process, which included the Wholesale Customers, as documented in the San Benito Urban Area Water and Wastewater Master Plan Update 2023.

ADRoP includes the construction of up to five Aquifer Storage and Recovery (ASR) wells, the expansion of the West Hills Water Treatment Plant (WHWTP), and the installation of pipelines for water transmission. It will have the capacity to inject, store, and recover up to 2,700 AFY of water. The WHWTP will be expanded from its current design capacity of 4.5 mgd to 6.75 mgd, which will provide additional treatment capacity to serve San Juan Bautista and deliver treated water to the ASR wells while still meeting current demands. The WHWTP will need to be modified to provide an alternative point of delivery for San Juan Bautista, the costs of which will be borne exclusively by San Juan Bautista.

In the years when water is being stored, the treated water will be delivered into the distribution system using the existing gravity flow pipeline, at which point it will be conveyed through pipelines owned by Hollister and then to the ASR wells through a new dedicated transmission pipeline owned by the District. In years when water is recovered from storage, the water will be pumped from the ASR wells, disinfected, and delivered into Hollister’s distribution system. The ASR wells will be located along Fallon Road while the transmission pipeline will be located along San Felipe Road.

Various components of ADRoP are either under active construction or are in the final design phase. The final capital costs will not be known at the time this Agreement is executed. The current estimated capital cost of ADRoP is approximately $54 million. The District has been awarded $20 million in grant funding from DWR and USBR and will be applying for up to $6 million in additional grant funding from USBR. Any grant funds received will offset the Wholesale Customer’s capital obligation for ADRoP. The District intends to fund the remaining capital costs with the issuance of $40 million in revenue bonds, which will be used for cashflow during construction and the bulk of which will need to be repaid through the Reliability Fee described in this Agreement.

Summary of Estimated Capital Costs
Component Estimated Capital Cost*
West Hills Water Treatment Plant Expansion $13,500,000
ASR Wells and Pipelines $27,800,000
Consulting Services $11,000,000
Total Estimated Capital Costs $52,300,000
Note: Capital costs are estimated as of August 25, 2025. Costs include program management, legal, financial, stakeholder outreach, design, environmental permitting and mitigation, construction, construction management, and engineering services during construction.

31 EXHIBIT C: Explanation of Cost Components
Explanation of Cost Component

Calculation Methodology

CAPITAL COSTS

Each Wholesale Customer shall be obligated to pay a respective share of the capital costs of the Treatment Facilities and ADRoP, the terms of which vary for each cost component as described below.

The Capital Treatment Component and Capital Replacement Reserve Component are “take or pay.” Each Wholesale Customer must pay the whole of their respective amount of these cost components regardless of whether a Wholesale Customer takes delivery of water.

Capital Treatment
Component
The Capital Treatment Component includes the costs
District incurred for the development and construction of the Treatment Facilities, including costs for legal review, financing, planning, design, engineering, permitting,
construction, and construction management.

The Capital Treatment Component will be
collected from Wholesale Customers on a
monthly amortized basis, with each
Wholesale Customer paying a percentage
reflecting the treatment capacity they are
entitled to, as set forth in Article 5.2(f) of the
Agreement.

Reliability Fee
Component
The Reliability Fee Component includes the remaining
principal of the costs District incurred for the
development and construction of ADRoP (wells,
pipelines, and expansion of the West Hills WTP) not
recovered by District via grant funding, including costs for legal review, financing, planning, design, engineering, permitting, construction, and construction management.

The Reliability Fee will be collected from
Wholesale Customers on a monthly basis at
the rate established by District multiplied by
the number of acre feet delivered to each
Wholesale Customer. The Reliability Fee will
also be collected from each of District’s other
M&I customers.

Capital Replacement
Reserve Component
The Capital Replacement Reserve Component shall be
an amount established by District each year to cover
annual depreciation of the Treatment Facilities.

The annual amount established by District
will be collected from each Wholesale
Customer on a monthly amortized basis.

FIXED OPERATIONAL
COSTS
Each Wholesale Customer’s obligation for their respective amount of the aggregate Fixed Operational Costs shall be based on the percentage of the treatment capacity to which each Wholesale Customer is entitled pursuant to this Agreement.

These costs are “take or pay.” Each Wholesale Customer must pay the whole of their respective amount of the Fixed Operational Costs regardless of whether a Wholesale Customer takes delivery of water.

Administrative Fee
Component
The Administrative Fee Component includes, but is not
limited to, District’s actual costs for owning, managing, and operating the Treatment Facilities and ADRoP;
general overhead for general and administrative
expenses necessary for operations; employee benefits
and payroll expenses, including, but not limited to,
compensated absences, retirement benefits, Medicare,
worker’s compensation, unemployment insurance,
payment for cafeteria tax benefits, life insurance,
employee assistance programs, and other post-
retirement benefits.

The aggregate amount of the Administrative
Fee Component shall be 5% of District’s total
payroll expenses, collected from Wholesale
Customers on a monthly basis, with each
Wholesale Customer paying a percentage
reflecting the treatment capacity they are
entitled to, as set forth in Article 5.2(f) of the
Agreement.

Direct Cost Component The Direct Cost Component includes District’s fixed costs of ownership of the Treatment Facilities and
ADRoP, including property insurance, DPH fees, and
other similar costs of ownership.

The Direct Cost Component will be collected
from Wholesale Customers the following
month in which such costs were incurred,
with each Wholesale Customer paying a
percentage reflecting the treatment capacity
they are entitled to, as set forth in Article

5.2(f) of the Agreement.

Fixed Treatment
Component
The Fixed Treatment Component includes the costs for
treating raw water that remain constant regardless of the volume of water that is treated.

The Fixed Treatment Component will be
collected from Wholesale Customers on a
monthly basis, with each Wholesale
Customer paying a percentage reflecting the
treatment capacity they are entitled to, as set
forth in Article 5.2(f) of the Agreement.

32 VARIABLE

OPERATIONAL
COSTS
Each Wholesale Customer’s obligation for their respective amount of the aggregate Variable Operational Costs shall be based on the percentage of treated water delivered to each Wholesale Customer pursuant to this Agreement.

(Example: Assume District delivers 10,000 AF of water in a given year. Wholesale Customers A and B each received 40% of those total deliveries, and Wholesale Customer C received 20%. In this case, Wholesale Customers A and B will each pay 40% of the Variable Operational Costs, and Wholesale Customer C will pay 20% of the Variable Operational Costs.) Water Supply
Component
The Water Supply Component includes District’s costs of obtaining raw water for the ensuing year from the CVP
and other sources to the Treatment Facilities.

District will calculate the aggregate of the
Water Supply Component each year during
its normal rate-setting process based on the
sources and costs of water supplied during
the prior three years of deliveries, together
with projections of water availability and
costs for the ensuing 36 months of water
deliveries as requested by Wholesale
Customers. The Water Supply Component
will be collected from Wholesale Customers
on a monthly basis, with each Wholesale
Customer paying its respective percentage of
the water delivered to the Wholesale
Customers.

Variable Treatment
Component
The Variable Treatment Component includes the costs
for treating raw water that vary depending upon the
volume of water that is treated by the Treatment
Facilities, including such variable costs associated with delivering treated water to the ASR Wells for purposes of ADRoP.

District will calculate the aggregate of the
Variable Treatment Component based on
actual costs, which will be collected from the
Wholesale Customers on a monthly basis,
with each Wholesale Customer paying its
respective percentage of the water delivered
to the Wholesale Customers.

ADROP – DEFERRED

PAYMENT OF COSTS

INCURRED DURING

STORAGE YEARS
In years when District’s total water supply is determined by District to be sufficient to store water using the ASR Wells, payment for any costs associated with the Water
Supply Component or Variable Treatment Component
attributable to water stored using the ASR Wells and
ASR Pipelines shall be deferred and those costs shall be borne by District until such time that any stored water is recovered from the ASR Wells and delivered to
Wholesale Customers.

District shall account and bill for water
recovered from the ASR Wells in the same
manner it would account and bill for transfer
water acquired by District, calculated by
multiplying the amount of recovered water by
the aggregate unit cost of all water previously
stored, into its subsequent rate study. District
shall recover such deferred payments
through the Water Supply Component.

District shall also recover such unpaid costs
for water stored using the ASR Wells and
ASR Pipelines from its other M&I customers,
including those not receiving water pursuant
to this Agreement, in the same manner as
from the Wholesale Customers.

EXTRAORDINARY

OPERATIONS AND

MAINTENANCE
Extraordinary operations and maintenance costs outside of the anticipated annual budgeted amount shall be discussed by the Advisory Committee before District commits to such costs or includes them in a Wholesale Customer’s invoice. Nevertheless, if District determines after discussion with the Advisory Committee that such costs are necessary to provide a safe reliable source of potable water that meets all regulatory requirements, or if such costs are required to provide for the continuing safe operation of the Treatment Facilities or ADRoP, District shall have authority to incur such costs and include them in the Wholesale Customers’ invoice, itemizing such costs under the cost component District determines is appropriate, amortized over a 12 month period.

33 EXHIBIT D: Wholesale Customers’ Water Service Areas
City of Hollister and Sunnyslope County Water District Service Areas

Source: Hollister Urban Area Urban Water Management Plan, July 2021

34 City of San Juan Bautista Service Area

Source: City of San Juan Bautista Water Master Plan, November 2020

35 EXHIBIT E: District’s Zone 6 Boundary

36 EXHIBIT F: District Policy on Restriction and Designation of Net Assets/Cash The District Policy on Restriction and Designation of Net Assets/Case as set forth herein was adopted by the San Benito County Water District on May 28, 2025, pursuant to Resolution No. 2025-12. This Policy may be amended by the District annually.

PURPOSE:

Adequate reserved funds (net assets/cash) are a necessary component of the District’s overall financial management plan and are required to meet various externally imposed constraints.

Funds are reserved to meet specific future financial obligations and to mitigate natural, economic, political and regulatory risks. This policy is intended to document the business practices of the District and accurately reflect the nature, purpose and management of restricted and designated net assets and accurately reflect the financial condition of the District to its constituents, creditors, financial institutions, regulatory agencies, State and Federal agencies and the general public.

POLICY:

Restricted Net Assets/Cash
In accordance with GASB Statement 34 and FASB Statement 71, net assets are restricted when constraints placed on their use are externally imposed by creditors, grantors, contributors, or laws or regulations of other governments. They are also restricted if their use is constrained by law through constitutional provisions or enabling legislation. Restricted Net Assets/Cash, the source of Restriction, the purpose of the Restriction, the method of determining the amount of Restriction and the treatment of interest is shown on Table I.

Designated Nets Assets/Cash
In accordance with GASB Statement 34, designations of net assets represent management’s intended use of resources and should reflect plans approved by the government’s senior management. Designations reflect a government’s self-imposed limitations on the use of otherwise available current financial resources. Designated Net Assets/Cash, the purpose of the Designation, the method of determining the amount of Designation and the treatment of interest is shown on Table 2.

PROCEDURE:
• Restrictions are to be reviewed by the Finance Committee annually including but not limited to a review of statutory and regulatory changes impacting or creating Restriction of District Net Assets/Cash together with any new or pending constraints resulting from business relationships with creditors, grantors or contributors. • For any new or amended contract or other business relationship or action that creates or changes a restriction of Net Assets/Cash, the nature and amount of that restriction or change in restriction shall be specifically and fully detailed in the documents supporting action by the Board and only the Board shall have the authority to take or approve any action which has the effect of creating or changing such restriction(s) of Net Assets/Cash.

37 • Designations are to be reviewed by the Finance Committee annually and any changes approved by the Board on or before June 30 each year.
• Adding a designation category requires specific approval of the Board. This action will include: 1) the purpose of the designation, 2) the dollar amount of the designation, 3) the method for calculating any annual adjustment(s), if the dollar amount is to change each year, and 4) whether or not the interest accrued on the designated amount is to be added to the designation at the end of each fiscal year. • Removing a designation category requires specific approval of the Board. • Changing the method for calculating the annual adjustment(s) of the designation requires approval of the Board.
• The actual dollar amounts of the designation shall be calculated based on the defined method and adjusted at year-end for financial reporting purposes. • Designated net assets will be segregated into separate financial accounts. • An identical amount of cash will be designated for annual financial reporting purposes in order to reflect management’s intention to fund the commitment of designated net assets. Designated cash will not be segregated from undesignated cash either in bank/investment accounts or in financial accounts except when that cash is separately invested in a manner specifically approved by the Board.

The General Manager shall have full authority and responsibility to carry out actions of this policy.

38 Table #1

RESTRICTED NET ASSETS/CASH
Name of
Restricted
Net
Asset/Cash Source Of Restriction Purpose Method for Calculating Amount of Restriction
Treatment of
Accrued
Interest
District
Revolving
Fund
San Benito County Water
Conservation and Flood
Control District Act (Section
70-7.1(a))
To provide
funds which
may be used
for
emergencies
and to pay
costs
necessary for
the
establishment
of a zone
within the
District.

Amount specified in the District
Act. Interest
accrued as
specified in
the District
Act.

San Felipe-
Hollister
Conduit
Reserve
USBR Contract Central
Valley Project-Contract
Between the United States
and the San Benito County
Water Conservation and
Flood Control District for
Water Service and for
Operation and maintenance
of Certain Works of the San
Felipe Division (Contract #8-
07-20-
W0130)
To meet
unforeseen
extraordinary
costs and
emergencies.

Amount specified in the
Contract. As specified
in contract.

39 Table #1

RESTRICTED NET ASSETS/CASH
Name of
Restricted Net
Asset/Cash Source Of Restriction Purpose Method for Calculating Amount of Restriction
Treatment of
Accrued
Interest
San Felipe-
Reach 1
Reserve
USBR San Felipe
Division- Contract for
the Transfer of the
Operation and
Maintenance of Certain
San Felipe Division
Facilities (Contract # 6-
07-20- X0290): United
States, Santa Clara
Valley Water District,
and San Benito County
Water Conservation
and Flood
To meet
operations and
maintenance
costs incurred
during period
of special
stress and
extraordinary
repair or
replacement
costs
associate with
Reach 1.

Amount specified in the Contract As specified in
contract.

40 Table #1

RESTRICTED NET ASSETS/CASH
Name of
Restricted Net
Asset/Cash Source Of
Restriction Purpose Method for Calculating Amount
of Restriction
Treatment of
Accrued
Interest
USBR
Contract
Repayment
and Rate
Management
Reserve
Agreement Between
Santa Clara Valley
Water District and
San Benito County
Water District for
Repayment and
Management of San
Felipe Division
Facilities.

Funds to pay for San
Felipe Division
costs, including
existing foreseeable
and unforeseeable
costs that may result
from catastrophic
failure of San Felipe
Division facilities.

Funds from this
restricted reserve
are to be used for
USBR Amendatory
Contract Repayment
. This USBR
Contract
Repayment and
Rate Management
Reserve is intended
to provide funds to
make interest and
principal payments
on the Amendatory
contract in an effort
to minimize the
impact of the
repayment schedule
on water rates and
taxes.

At each fiscal year end, the
amount added to the reserve
would be the annual allocation
from the land tax, interest accrued
on the restricted reserve, and the
amount associated with the
interest component in M&I water
rates. Withdrawals may be made
for the USBR principal and interest
payments required during the fiscal
year as outlined in Exhibit D of the
Amendatory contract NO. 8-07-20-
W0130A and for costs associated
with WIIN Act USBR in-basin
capital repayment costs. Effective
fiscal year end 2017-2018, the
annual allocation for the Zone 6
land tax is 30% of the land tax and
is subject to annual review by the
Board. For fiscal year end 2013,
the reserve balance will be
adjusted to the target minimum of
one and one half years of USBR
Amendatory Contract payments
and the remaining balance will be
transferred to the Designation for
Hollister Urban Area Water
Treatment Plants. The Capital
Recovery components (principal
and interest) as identified in the
Water Supply and Treatment
Agreement will be added to the
reserve each year in relative
proportion to the reserves funding
of the project costs. Repayment
costs associated with repayment of
the in-basin capital costs will be
added back to the reserve on an
amortized basis over the remaining
life of the USBR Amendatory
Contract (2036).

Added to the
Restricted
Reserve to
meet future
obligations
associated
with San
Felipe Division
costs.

41 Table #1

RESTRICTED NET ASSETS/CASH
Name of
Restricted
Net
Asset/Cash Source Of Restriction Purpose Method for Calculating Amount of Restriction
Treatment of
Accrued
Interest
Reach 1
Major Repair
and
Replacement
Reserve
Agreement Between
Santa Clara Valley
Water District and San
Benito County Water
District for Repayment
and Management of
San Felipe Division
Facilities.

To provide funds for
major repair and
replacement
associated with
Reach 1.

Initial balance to be transferred
from the fiscal year end 2006
balance of the designation
USBR Contract Renewal.

Review amount of restriction
annually to be in compliance
with Section 4(a) of the
Agreement Between Santa
Clara Valley Water District and
San Benito County Water
District for Repayment and
Management of San Felipe
Division Facilities. When funds
are used from this reserve to
pay for Reach 1 Major repair
and replacement, they will be
replenished from the operating
budget over 5 to 10 years,
depending on life of asset,
beginning in the initial project
year. Replenishment will
also include a 3% inflation
factor. Target minimum
established at $500,000.

Accrued
interest is to
be added to
the
Restricted
Reserve until
such time that
the minimum
aggregate
amount is
achieved.

Once the
minimum
aggregate
amount is
achieved, the
interest will
be added to
the
undesignated
cash of the
District.

42 Table #1

RESTRICTED NET ASSETS/CASH
Name of
Restricted
Net
Asset/Cash Source Of Restriction Purpose Method for Calculating Amount of Restriction
Treatment of
Accrued
Interest
Reserved for
Water
Treatment
Plants-Asset
Replacement
Reserve
Hollister Urban Area Water
Supply and Treatment
Agreement: Article

6.3(a)(4)
To provide funds
for capital
replacement of
assets of the
Water Supply
and Treatment
Program, and
funds so
expended will be
replaced through
subsequent
contributions.

Annual contribution of
$190,000 for the Lessalt
water treatment plant through
fiscal year end 2017.

Effective fiscal year 17-18,
the annual amount collected
is established at 1.5% of
constructed cost of water
treatment plants. Amount is
collected through the capital
replacement cost component
of the monthly billing to the
Hollister Urban Area retailers
to cover anticipated costs for
future capital replacements for
both water treatment plants as
reviewed annually by District
Engineer. Effective fiscal year
end 2018-2019, any balance
remaining in the Reserve for
Hollister Urban Area Water
Treatment Facilities will be
transferred to the Reserve for
Water Treatment Plants-
Asset Replacement Reserve.

Interest will
accrue. Interest
accrued on
restricted balance
is added to the
restriction each
fiscal year-end.

Average LAIF
interest rate is
applied to the
amount of
restriction during
that fiscal year.

Reserve for
Other Post-
Employment
Benefits
(OPEB)
Trust
CERBT Trust Account To provide
restricted funds
for retiree future
medical
payments.

Amount will be reviewed
annually by the Board during
the budget process.

As specified in
CERBT contract.

43 Table #2

DESIGNATED NET ASSETS/CASH
Name of Designated
Net
Asset/Cash
Purpose Method for Calculating Amount of
Designation
Treatment of
Accrued
Interest
Reserved for Operations The reserves designated
for operating
contingencies are
established to provide for
unforeseen needs,
revenue shortfalls, and
emergency
appropriations during the
year.

At fiscal year-end, the District will
move from fifty percent to one
hundred percent of an average of the
most recent 3 years’ annual operating
expense (excluding depreciation,
amortization and operating expense
associated with the Hollister Urban
Area water treatment plants)by
increasing the amount to be sixty
seven percent, then the next fiscal
year to eighty four percent, and then
final one hundred percent in the next
following fiscal year.

No interest accrual.

Reserved for Capital
Improvements
Established by board
action(s) to fund future
capital improvement
projects. The purpose of
this designation is to
accumulate funds for
specific projects or utility
purpose to provide all or a
portion of the cost.

These designations are for specific
new capital improvement projects.

The board decides how much to fund
and for which projects. Funding level
is reviewed annually. Any use of
funds is replenished from the
operating budget on an amortized
basis over the assigned life of the
project. Use of funds from this
reserve for preliminary survey and
investigation, will be replenished from
the operating budget on an amortized
basis over 5 years.

No interest accrual.

Reserved for Self-
Insurance
Established by board
policy to fund the
contingent liability for the
District's self-insured
portion of vehicle
coverage.

Adequacy of funding level will be
reviewed annually.

No interest accrual.

44 Table #2

DESIGNATED NET ASSETS/CASH
Name of
Designated
Net
Asset/Cash
Purpose Method for Calculating Amount
of
Designation
Treatment
of Accrued
Interest
Reserved for
Capital Asset
Replacement
This designation is to accrue funding for
asset purchase and replacement in the
period of use. Through this funding
reservation, monies are set aside for
planned future asset expenditures within
specified categories. In addition, this
reserve provides a funding source for
unanticipated asset needs, mitigates the
impact of large budget expenditures, and
assists with asset management and long
range planning.

The designation will be increased by
the amount of the annual depreciation
expense for each asset multiplied by a
factor for each asset group based on
their assigned life. Assets with
assigned lives of 1-15 years are
reserved at 100% of their annual
depreciation expense. Assets with
assigned lives of 16 to 49 years are
reserved at 50% of their annual
depreciation expense. Assets with
assigned lives of 50+ years and land
are not reserved for.

Interest will
accrue. Interest
accrued on
designated
balance is
added to the
designation at
fiscal year end.

Average LAIF
interest rate is
applied to the
amount of
designation
during that
fiscal year.

Water Supply
Revolving
Reserve
To provide additional source of funds for
Zone 6 water supply augmentation
through local or imported water
purchases.

Amount of administrative fee from
water sales/transfers and/or funding
from operations. Funding level is
reviewed annually. Use of funds will be
replenished from the operating budget
over 5 years on an amortized basis.

Target minimum of $3 million funded
over 5 years.

No interest
accrual
Expanded
Pacheco
Reservoir
To provide funds for the pre- construction
(planning and design) phase of the
project.

Effective July 1, 2018, the reserve will
be initially funded at $1,000,000. At
FYE Amount will be reviewed annually
by the Board during the budget
process.

No interest
accrual.

Reserved for
Reliability
Charge M&I
Established to fund future water reliability
improvement projects. The purpose of this
designation is to accumulate funds for
specific reliability projects to provide all or
a portion of the cost.

These designations are for specific
new reliability capital improvement
projects. The funds are accumulated
from the reliability fee charged each
fiscal year.

No interest
accrual.

STAFF REPORT

HOLLISTER CITY COUNCIL
MEETING DATE: September 15, 2025
REPORT # City Clerk-2025-49

AGENDA ITEM: INTRODUCE LOBBYING ORDINANCE FOR THE CITY OF

HOLLISTER

DEPARTMENT: City Clerk
DEPARTMENT HEAD: Jennifer Woodworth, City Clerk
STAFF CONTACT: Jennifer Woodworth, City Clerk

RECOMMENDED ACTION: Hold a public hearing and introduce a Lobbying Ordinance to be added to Chapter 1.20 Lobbying to Title 1 General Provisions of the Hollister Municipal Code.

DISCUSSION: At the April 7, 2025, regular City Council meeting, the City Council discussed the County of San Benito’s lobbying ordinance and whether to create a similar ordinance for the City of Hollister.

Based on Council feedback, staff drafted a proposed Lobbying Ordinance based on th e County’s Ordinance. Additional language related to lobbyists identifying themselves and their clients upon addressing any legislative body, City staff, and/or City official(s) was included.

At the August 18, 2025 City Council meeting, the City Council directed staff to return with an item to hold a public hearing and introduce a Lobbying Ordinance.

The proposed ordinance seeks to:
 Maintain fair and open decision-making process in county government  Impose registration and disclosure requirements on lobbyists  Ensure county officials are aware of the interests a lobbyist represents  Require lobbyists to not deceive county representatives, place them under personal obligations, or claim control over their actions  Requires registration for various types of lobbyists, requires annual renewal for registered lobbyists, quarterly reports for lobbyists, sets thresholds for when lobbyist registration is required, and sets various disclosure requirements. The ordinance also differentiates between land use lobbyists and other types of lobbyists with land use lobbyists required to comply with stricter reporting requirements.
 Outlines various fees and penalties for non-compliance.

FISCAL IMPACT: Unknown at this time.

PREVIOUS COUNCIL OR COMMISSION ACTION: At the April 7, 2025 meeting, the City Council directed staff to return with a draft Lobbying Ordinance based on provisions included in the San Benito County Lobbying Ordinance . At the August 18, 2025 City Council meeting, the City Council directed staff to return with an item to hold a public

hearing and introduce a Lobbying Ordinance.

CEQA: N/A

ATTACHMENTS:

1. Lobbying Ordinance

ORDINANCE NO. [XXXX]

AN ORDINANCE OF THE CITY OF HOLLISTER ADDING CHAPTER

1.20 “LOBBYING” TO TITLE 1 “GENERAL PROVISIONS” OF THE

CITY OF HOLLISTER MUNICIPAL CODE

WHEREAS, the City of Hollister (“City”) seeks to maintain a fair and open decision - making process in City government; and

WHEREAS, the City believes the public disclosure of the identities of lobbyists, the interests they represent, and the financing behind their activities fosters public confidence in the integrity of City government; and

WHEREAS, the City seeks to impose registration and disclosure requirements to ensure that City officials are aware of the interests lobbyists represent when they engage in lobbying activities; and

WHEREAS, the City further believes it is in the public interest that lobbyists do not misrepresent facts or their positions, deceive City representatives through false communications, place City representatives under personal obligations, or claim control over their actions.

NOW THEREFORE, the City seeks to amend Title 1 of the City of Hollister Municipal Code to include Chapter 1.20: Lobbying, as set forth below.

The City Council of the City of Hollister ordains as follows:

SECTION 1. Chapter 1.20: Lobbying is hereby added to Title 1 of the City of Hollister Municipal Code to read as follows:

Chapter 1.20: Lobbying

Section

1.20.010 Purpose

1.20.020 Definitions

1.20.030 Registration and Disclosure Requirements

1.20.040 Exemption

1.20.050 Prohibitions

1.20.060 Penalties

1.20.070 Enforcement

1.20.010 PURPOSE.

(A) The purpose of this Chapter is to maintain a fair and open decision-making process in City government which functions to serve the needs of all citizens.

Both the public and City officials should have full knowledge of lobbying activities that influence legislative or administrative actions.
(B) The purpose of this Chapter is also to impose registration and disclosure requirements on those engaged in lobbying efforts to influence the decisions of

City policy makers for compensation. Public disclosure of the identities of lobbyists, the interests they represent, and the financing behind their activities fosters public confidence in the integrity of City government. (C) Additionally, these disclosure and registration requirements ensure that City officials are aware of the interests lobbyists represent when they engage in lobbying activities. It is in the public interest to adopt this chapter to provide adequate and effective transparency reg arding lobbying efforts aimed at influencing City government.
(D) The disclosure and registration requirements furthers the public interest that lobbyists do not misrepresent facts or their positions, deceive City representatives through false communications, place City representatives under personal obligations, or claim control over their actions.

1.20.020 DEFINITIONS.

Whenever used in this Chapter, the following words and phrases shall have the definitions provided in this section. Other terms used and not defined in this Chapter have the meanings set forth in this Title, and terms not used and not defined in this Title have the meanings set forth in the California Political Reform Act of 1974, as amended.

ADMINISTRATIVE ACTION includes the proposal, drafting, development, consideration, advocacy, recommendation, adoption, amendment, termination, extension, or approval of any rule, regulation, agreement, contract, permit, license, policy, land use entitlement, or hiring action.

AT THE BEHEST means at the means under the control or at the direction of, in cooperation, consultation, coordination, or concert with, at the request or suggestion of, or with the express, prior consent of.

CONTRIBUTION means a payment, a forgiveness of a loan, a payment of a loan by a third party, or an enforceable promise to make a payment except to the extent that full and adequate consideration is received, unless it is clear from the surrounding circumstances that it is not made for political purposes. An expenditure made at t he behest of a candidate, committee or elected City official is a contribution to the candidate, committee or elected City official unless full and adequate consideration is received for making the expenditure.

1. The term " contribution" includes the purchase of tickets for events such as dinners, luncheons, rallies and similar fundraising events; the candidate's own money or property used on behalf of his or her candidacy; the granting of discounts or rebates not extended to the public generally or th e granting of discounts or rebates by television and radio stations and newspapers not extended on an equal basis to all candidates for the same office; the payment of compensation by any person for the personal services or expenses of any other person if such services are rendered or expenses incurred on behalf of a candidate or committee without payment of full and adequate consideration.

2. The term " contribution" further includes any transfer of anything of value received by a committee from another committee, unless full and adequate consideration is received.

3. The term “contribution” further includes any transfer of anything of value received by a Controlled Committee from another committee, unless full and adequate consideration is received.

4. The term " contribution" does not include:
a. Amounts received pursuant to an enforceable promise to the extent such amounts have been previously reported as a contribution; b. A payment made by an occupant of a home or office for costs related to any meeting or fundraising event held in the occupant's home or office if the costs for the meeting or fundraising event are five hundred dollars ($500.00) or less; or
c. Volunteer personal services or payments made by any individual for his or her own travel expenses if such payments are made voluntarily without any understanding or agreement that they shall be, directly or indirectly, repaid to him or her.

CANDIDATE means an individual who has filed a statement of organization as a committee for election to Elective City Office, a declaration of intent for election to Elective City Office or a declaration of candidacy to Elective City Office, whichever occurs first. An individual person shall not be deemed a candidate for purposes of this Chapter (1) after the individual is sworn into Elective City Office, or (2) if the individual lost the election, after the individual has terminated their campaign statement filing obligation for Elective City Office pursuant to Government Code section 84214, or after certification of the election results, whichever is earlier.

CLIENT means the person who compensates a lobbyist for representation before a City official.

CONTROLLED COMMITTEE means a committee which is controlled directly or indirectly by a Candidate, or which acts jointly with a Candidate in connection with the making of expenditures. A Candidate controls a committee if the Candidate, their agent or any other committee the Candidate controls has a significant influence on the actions or decisions of the Controlled Committee.

CITY OFFICIAL means members of the City Council, appointees of the City Council, the City Attorney, the City Treasurer, City department heads, members of City boards or commissions, and persons who have been elected to a City office but have not yet been sworn into office.

CONTACT OR CONTACTING means attendance at a meeting with a City official, or any direct communication with a City official, whether oral, electronic, or in writing, including, but not limited to communication through an agent, associate, or employee, for the purpose of engaging in Lobbying Activity.

COMPENSATED or COMPENSATION means any economic consideration for services rendered or to be rendered in the future, including, without limitation, payment, distribution transfer, loan advance, deposit, other rendering of money, property, services, or anything else of value.

ELECTIVE CITY OFFICE means the City Council and the Treasurer, or other City

positions which are elected by the voters.

ELECTED OFFICER means an individual who holds Elective City Office or has been elected to Elective City Office but has not yet taken office.

GIFT shall be defined as set forth in the Political Reform Act, Government Code Section 81000 et seq., and the regulations adopted thereunder; except that the exclusion for contributions shall be defined and governed as set forth in this chapter.

INFLUENCING means contacting, either directly or indirectly, for the purpose of promoting, supporting, modifying, opposing, causing the delay or abandonment of conduct, or otherwise intentionally affecting the official actions of the City official, by any means, including, but not limited to providing, preparing, processing, or submitting information, incentives, statistics, studies, or analyses.

LEGISLATIVE ACTION means the drafting, introduction, consideration, modification, enactment, or defeat of any resolution, ordinance, amendment thereto, report, nomination, policy, or other action of the City Council; a City board, commission, or task force; or any joint powers authority of which the City is a party.

LOBBYING ACTIVITY means influencing, or attempting to influence, directly or indirectly, a City official regarding public policy, legislative or administrative actions of the City, or decision-making on behalf of a particular interest or organization.

1. Lobbying activity does not include: general donations to organizations unless specifically intended for lobbying efforts in the City; expenditures to support a ballot measure; professionals advocating for their own applications or contracts; attending public meetings or submitting written statements to the official record; or volunteering with organizations, such as neighborhood groups not for compensation. For more details, see Section 1.20.040:

Exemptions, below.

LOBBYIST, unless exempt under Section 1.20.040, means:

1. CONTRACT LOBBYIST means any person, whether an entity or individual, engaging in Lobbying Activity on behalf of one or more clients (acting individually or through agents, associates, employees, or contractors) and who has received or has entered into an agreement for comp ensation of one thousand dollars ( $1,000.00) or more for any services that include engaging in Lobbying Activity during any consecutive three-month period.

2. IN-HOUSE LOBBYIST means any person, including a business, corporation, association, political action committee, or any other organization if its owners, officers, or employees have engaged in Lobbying Activity on its behalf.

3. EXPENDITURE LOBBYIST means any person who makes payments or incurs expenditures in the aggregate amount of five thousand dollars ($5,000.00) or more during any calendar year in connection with carrying out public relations, advertising, or similar activities with the intent of soliciting or urging, directly or indirectly, other persons to communicate directly with any City official in order to attempt to influence a legislative or administrative action. The five thousand dollars ($5,000.00) threshold does not include:
a. Compensation paid to contract lobbyists or in-house lobbyists for Lobbying

Activity; or
b. Dues, donations, or other economic consideration paid to a membership organization that is ongoing in nature and whose membership services are not limited to Lobbying Activity, regardless of whether the dues, donations, or other economic consideration are used in whole or in part for Lobbying Activity.

4. LAND USE LOBBYIST means any person who, during any consecutive twelve (12) month period (i) makes payments or incurs expenditures in the aggregate amount of $5,000.00 or more attempting to influence a major land use approval; or (ii) spends an aggregate amount of ten or more hours of compensated time attempting to influence a major land use approval, including time spent by officers, employees, agents, and members. a. The exemptions in subsections (d), (i), (j), (l), and (m) of Section 1.20.040 (Exemptions) do not apply to land use lobbyists.
b. Officers, employees, agents, and members of a land use lobbyist are not required to separately comply with Section 1.20.030 (Registration and Disclosure Requirements) for time or funds expended on behalf of the land use lobbyist in the scope of that relationship.

LOBBYIST DISCLOSURE REPORT means a document, with requirements outlined in section 1.20.030, that lobbyists, and lobbying firms are required to file to register as lobbyists and report their lobbying activities.

MAJOR LAND USE APPROVAL means any legislative or administrative action by the City on an application relating to:

1. Construction, demolition, alteration, development, or use of property in the unincorporated City that, if approved, would affect, in the aggregate, more than 25,000 gross square feet of existing, approved, or proposed buildings or structures;

2. The surface mining operation or reclamation of mined lands involving the disturbance or reclamation of more than 25,000 gross square feet of land; or

3. A "major subdivision," as defined in Section 16.04.040 of the City of Hollister Municipal Code.

OWNER means any individual with greater than a fifty (50) percent interest in the business.

PERSON means any individual, business entity, trust, corporation, association, committee, or any other organization or group of persons acting in concert.

1.20.030 REGISTRATION AND DISCLOSURE REQUIREMENTS.

(A) Lobbyist Registration.

1. Initial Registration. A Lobbyist is required to register his or her Lobbying Activity by filing a “Lobbyist Disclosure Report” (outlined below) with the City Clerk no later than ten days after accepting employment or contracting as a lobbyist and paying a registration fee.
a. Lobbyist Disclosure Reports are available on the City Clerk’s official webpage, and require disclosure of Lobbyist details (including name,

business address, and contact information), employees engaged in lobbying, clients represented, and specifics of Lobbying Activities. b. Amendments to Lobbyist Disclosure Reports must be submitted promptly following any changes to the provided information.
c. A Lobbyist who meets the threshold requirements of one or more of the categories (Contract Lobbyist, In-House Lobbyist, Expenditure Lobbyist, or Land Use Lobbyist) is only required to register once but must make all disclosures in the Lobbyist Disclosure Report.
d. Only Lobbying Activity that occurs after the effective date of this ordinance shall be considered for the purpose of qualifying as a Lobbyist.

2. Annual Registration. A Lobbyist shall renew their registration by January 15 of each year by filing a Lobbyist Disclosure Report and paying a registration fee, unless they have terminated their status as a Lobbyist pursuant to this section.

3. Quarterly Disclosures. Every Lobbyist registered or required to be registered pursuant to this Chapter must file a Lobbyist Disclosure Report for every calendar quarter with the City Clerk no later than fifteen (15) calendar days after the end of each quarter after Initial Registration whether or not any Lobbying Activities have occurred during such period unless they have filed a declaration attesting to the termination of Lobbying Activity pursuant to the requirements of this section.
a. Quarterly Lobbyist Disclosure Reports must be filed by April 15, July 15, and October 15 for the prior calendar quarter.
b. The quarterly Lobbyist Disclosure Reports shall be filed with the City Clerk, and must include:
i. The name(s) and title(s) of the City Officer or Employee who was communicated with, or received the service or thing of value; ii. A description of the governmental decisions or issues discussed; iii. Any payments or other forms of compensation provided during the interaction(s); and
iv. Signature under penalty of perjury.
c. For purposes of determining the amount expended during one quarter, the amounts expended on any one City Officer or Employee by all representatives, officers, directors and employees of a corporation, firm, or organization shall be aggregated.
(B) Registration Fees.

1. Each Lobbyist required to file a Lobbyist Disclosure Report under this Chapter shall be charged an initial registration fee of two hundred and fifty dollars ($250.00), and an annual renewal fee of one hundred and fifty dollars ($125.00).

2. If the fee is not paid at the time of registration or registration renewal, a late registration fee will be assessed each day until the registration fee is paid in full. In no event will the late registration fee exceed one hundred (100) percent of the unpaid registration fee.

3. Lobbyists who fail to file a quarterly Lobbyist Disclosure Report on the date due will be assessed a late fee of ten dollars ($10.00) per day per violation. (C) Lobbyist Disclosure Report.

1. A Lobbyist who meets the threshold requiremen ts of one or more of the categories (Contract Lobbyist, In-House Lobbyist, Expenditure Lobbyist, or Land Use Lobbyist) must fill out a Lobbyist Disclosure Report and quarterly

updates with all the applicable information including the following:
a. Name;
b. Business address;
c. Telephone and fax numbers;
d. Email address;
e. Names of all owners if the Lobbyist is a sole proprietorship or partnership of fewer than five persons;
f. Names of the officers and agent of service of process, if any, if the Lobbyist is a corporation;
g. If applicable, a description of the nature of, the business, corporation, association, committee, or any other organization in sufficient detail to inform the reader of its nature and purpose; and
h. If applicable, contacts made with City officials during the preceding calendar quarter for the purpose of conducting Lobbying Activity. Contact information must include a brief description of the item(s) of legislative or administrative action the Lobbyist is seeking to influence and the number of contacts in the following ranges: one, two to five, six to ten, eleven or more.

2. All Contract Lobbyists must also provide the following information for each client:
a. Name of each client represented before City officials; b. A brief description of the legislative or administrative action(s) the lobbyist seeks to influence on behalf of each client;
c. Name of each person employed or retained by the lobbyist to engage in Lobbying Activity on behalf of each client; and
d. The total compensation promised or received from each client listed during previous calendar quarter for Lobbying Activity within the following ranges:
zero dollars ($0.00) to one hundred thousand dollars ($100,000.00), and over one hundred thousand dollars and one cent ($100,000.01).

3. All In-House Lobbyists must also provide the following information:
a. Names of each owner, officer, and employee conducting Lobbying Activities on its behalf; and
b. A brief description of the legislative or administrative action(s) the Lobbyist seeks to influence.

4. All Expenditure Lobbyists must also provide the following information:
a. Names of each owner, officer, and employee conducting Lobbying Activities on its behalf; and
b. A brief description of the legislative or administrative action(s) the Lobbyist seeks to influence.

5. Land Use lobbyists:
a. All Land Use Lobbyists must provide the following information for each major land use approval the Land Use Lobbyist has attempted to influence during the reporting period:
i. A description of the major land use approval.
ii. A summary of the Land Use Lobbyist's activities during the reporting period relating to influencing the major land use approval, including reports prepared, events held, advertisements purchased, robocalls made, mailers distributed, and public officials contacted. iii. The total amount the Land Use Lobbyist expended during the

reporting period relating to influencing each major land use approval, excluding compensation to officers and employees. iv. Each entity to which the Land Use Lobbyist made payments of $500.00 or more, in the aggregate, during the reporting period for activities relating to influencing a major land use approval; the date of each payment; and the purpose for which the payment was made.
v. All contacts by the Land Use Lobbyist, including by its officers, employees, agents, and members, with public officials, including officers and employees of counties, cities, special districts, and state agencies, for the purpose of influencing the major land use approval. The report must include the name of each public official, the date of the contact, and the nature of the contact. vi. The client (if any) on whose behalf the Land Use Lobbyist sought to influence the major land use approval.
vii. Any other information required by the City Clerk through regulation consistent with the purposes and provisions of this Chapter. b. Land Use Lobbyists must update the reports required by this Section at least two (2) days, but not more than twenty-one (21) days, before any meeting or public hearing at which an action relating to the major land use approval, or any component thereof, will be on the agenda. (D) Employment of City Officers or Employees.

1. A Lobbyist registered or required to be registered pursuant to this Chapter, or an individual, corporation, firm or organization employing or represented by a Lobbyist registered or required to be registered who knowingly employs a City Officer or Employee shall file a written notice with the City Clerk. a. The notice shall be filed with the City Clerk within ten (10) days after employing a City Officer or Employee. The notice shall be entitled, "Notice of Lobbyist Employing a City Officer or Employee" and shall contain the full name and business address of the person filing the stat ement, the full name of the City Officer or Employee the Lobbyist is employing, and the date the Lobbyist first employed the City Officer or Employee. (E) Termination of Registration.

1. If Lobbyists file a declaration attesting to the termination of Lobbying Activity no later than the date the annual registration or quarterly disclosure is due, they will not be required to file any further Lobbyist Disclosure Reports. This declaration must be accompanied by a final Lobbyist Disclosure Report, disclosing any Lobbying Activities that occurred during the quarter of termination.
(F) 1.28.050 Identification of Clients.

1. Unless otherwise excused by law, each lobbyist who appears before the City Council or City board, commission or committee to engage in lobbying activities shall identify himself or herself and the client(s) he or she represents upon addressing the body.

2. Any lobbyist who makes an oral lobbying contact with a City representative shall, at the time of the initial lobbying contact with each City re presentative, identify himself or herself as a registered lobbyist and identify the client or clients on whose behalf the lobbying contact is made.

3. Any lobbyist who makes an initial written lobbying contact (including an

electronic communication) with a City representative and/or City employee shall identify the client(s) on whose behalf the lobbying contact is made and identify himself or herself as a registered lobbyist.
(F) Submission of Information. All information required under this section shall be submitted to the City Clerk in the format designated by the City Clerk. (G) Verification of Information. Lobbyists shall verify, under penalty of perjury, the accuracy and completeness of the information provided under this chapter (H) Retention of Documents. Lobbyists are requested retain for a period of five (5) years all books, papers and documents necessary to substantiate the registration and disclosure reports required by this Chapter.

1.20.040 EXEMPTION.

The following persons are exempt from the requirements of this Chapter unless otherwise specified:
(A) A public official acting in his or her official capacity. (B) A person engaged solely in publication or broadcasting of news items, editorials, or commentary which directly or indirectly urges governmental action. (C) A person hired by the City for work performed on behalf of City, or a person who prepares documents for approval by the City under the California Environmental Quality Act of 1970, or a person who has been specifically invited by a City official for the purpose of giving testimony in aid of the body or person extending the invitation or invited to attend a meeting such as a City task force or department committee meeting to provide information or assistance requested by City staff. (D) The owner of a business whose attempts to influence governmental action are on behalf of the business and:

1. The owner or business has not retained a person to engage in Lobbying Activity on behalf of the owner or business; or

2. Officers or employees of the business (not including the owner) have not engaged in Lobbying Activity on behalf of the owner or business

3. This exemption applies only to the threshold for becoming an In-House Lobbyist as defined in this Chapter. An owner of a business who meets this exemption is subject to the requirements of this Chapter if he or she meets the definition of Contract Lobbyist or Expenditure Lobbyist as defined under this Chapter. (E) A person whose attempts to influence governmental action limited to:

1. Publicly appearing at a public meeting, public hearing, or other official proceeding open to the public; and/or

2. Preparing, processing or submitting documents or writings in connection with governmental action for use at a public meeting, public hearing, or other official proceeding open to the public.
(F) A person whose sole activity includes one (1) or more of the following:

1. Submitting a bid on a competitively bid contract or other solicitation for goods or services;

2. Submitting a written response to a request for proposals or qualifications or other solicitation for goods or services;

3. Participating in an oral interview or other process in connection with a request for proposals or qualifications, or other solicitation f or goods or services; or

4. Negotiating the terms of an agreement with the City official authorized to negotiate such an agreement.
(G) A person who meets with City officials solely to lodge "whistleblower" complaints

relating to improper governmental activity such as mismanagement, waste of funds, an abuse of authority, or a substantial and specific danger to public health or safety.
(H) A person who meets with the City Attorney or City Clerk regarding any claim or litigation matter, negotiation of any agreements where the City is a party, or the requirements or interpretation of this chapter.
(I) Members of non-profit organizations or the uncompensated members of the board of directors of a non-profit organization when they attempt to influence City officials on behalf of the non-profit organization.
(J) Members of neighborhood associations, neighborhood advisory committees, or project area committees.
(K) A person whose communications are solely related to:

1. The establishment, amendment, administration, implementation, or interpretation of a collective bargaining agreement or a memorandum of agreement between the City and a recognized employee organization;

2. Management decisions as to the working conditions of represented employees that clearly relate to the terms of a collective bargaining agreement or memorandum of agreement between the City and a recognized employee organization; or
(L) A person whose communications with City officials are solely in connection with the administration of an existing contract or agreement between the person and the City.
(M) Compensated officers or employees of a nonprofit organization with tax exempt status under Section 501(c)(3) of the Internal Revenue Code whose attempts to influence governmental action are on behalf of the organization. (N) A person performing a duty or professional service that requires a license, including but not limited to attorneys, architects, certified public accountants (CPAs), or engineers licensed to practice in the State of California.

1.20.050 PROHIBITIONS.
(A) No Lobbyist shall commit any of the following acts:

1.Deception. Deceiving or attempting to deceive any City official regarding any material fact pertaining to any pending or proposed legislative or administrative action.

2. Unauthorized Communications. Sending or causing any communication to be sent to any City official in the name of any non-existent person or in the name of an existing person without the express or implied consent of such person.

3. Fictitious Persons. Contacting any City official in the name of any non-existent person or in the name of any existing person, except with the consent of such existing person.

4. Indirect Violations. Attempting to evade the requirements of this chapter through indirect efforts or through the use of agents, associates, intermediaries, or employees.

5. Creation of Obligations. Performing or sponsoring any act with the purpose and intent of placing any City official under personal obligation to the lobbyist.

6. Appearance of Obligations. Representing, directly or indirectly, orally or in writing, that he or she can control or obtain the vote or action of any City Official.

7. Unlawful Gifts. Making gifts to any City official aggregating more than $10 in a calendar month; acting as an agent or intermediary in the making of such gifts; or arranging for the making of such gifts by any other person. (B) No Elected Officer shall accept any Contribution from a person registered

pursuant to this chapter where the person's Lobbyist Disclosure Report includes the Elective City Office that the Elected Officer holds.
(C) No Candidate or Controlled Committee shall accept any Contribution from a person registered pursuant to this chapter where the person's Lobbyist Disclosure Report includes the Elective City Office to which the Candidate is seeking election. (D) An Elected Officer, Candidate or Controlled Committee may reasonably rely on the information contained in the most recent list of registrants compiled by the City Clerk- in determining whether Contributions may be accepted from any person. Acceptance of Contributions which would not be prohibited based on the information set forth in the City Clerk’s most recent list of registrants shall not constitute a violation of this section. (E) No City official shall knowingly accept any gift from an individual registered pursuant to this chapter. An Elected Officer, Candidate or Controlled Committee may reasonably rely on the information contained in the most recent list of registrants compiled by the City Clerk in determining whether a gift may be accepted from an individual.

1. Acceptance of a gift from an individual or entity not on the City Clerk’s most recent list of registrants shall not constitute a violation of this section unless the Elected Officer, Candidate or Controlled Committee knows that the individual or entity making the gift has registered, even though the registrant has not been included on the list.

1.20.060 PENALTIES.
(A) Negligent and unintentional violations of this chapter shall be punishable in accordance with procedures set forth in Chapter 1.18 (Administrative Citation) of this Code.
(B) Administrative fines for negligent and unintentional violations of this chapter shall be assessed in the following amounts:

1. A fine not exceeding two hundred and fifty dollars ($250.00) for a first violation;

2. A fine not exceeding five hundred dollars ($500.00) for a second violation within two (2) years from the date of a prior violation; and

3. A fine not exceeding one thousand dollars ($1,000.00) for a third violation, or any subsequent violation, within two (2) years from the date of any prior violation(s). (C) The City Clerk shall post on the City website and make available to the public a list of all Lobbyists who have received notices or paid fines for violating the provisions of this chapter within the previous four (4) years.
(D) Willful, knowing, or intentional violations of the provisions of this Chapter shall be liable in a civil action brought by the Office of the City Attorney. Any violation of the provisions of this chapter may result in civil penalties of up to five thousand dollars $5,000.00 per violation, or the amount of the compensation received for the Lobbying Activity, whichever is greater.
(E) Three (3) negligent or unintentional violations, or one (1) intentional violation of this Chapter shall result in a prohibition against engaging in Lobbying Activity for compensation. Such debarment will be in effect for two (2) years from the date the City Clerk determines that a violation has occurred or until the Lobbyist has come into compliance with this Chapter, whichever is later.
(F) Violation of this Chapter shall not constitute a criminal misdemeanor.

1.20.070 ENFORCEMENT.
(A) Any person may file a complaint with the City Clerk alleging a violation of this Chapter.

(B) Enforcement protocol.

1. Upon discovering a potential violation of this Chapter, the City Clerk must notify the Lobbyist of the alleged violation and the requirements of this chapter. Persons notified of a potential violation will have thirty (30) days to correct the error or demonstrate to the City Clerk that they have not violated this Chapter.

2. The City Clerk, or their designee, will investigate alleged violations of this Chapter in conjunction with the Office of the City Attorney.
a) The City Clerk has the power to inspect all documents required to be maintained by this Chapter.
b) The City Clerk may issue an order to show cause to any person for violations under this Chapter. Such an order must specify a time and place where such person must appear to provide evidence that he or she has complied with the requirements of this Chapter.

3. The City Clerk shall assess and collect fees and administrative penalties as an Enforcement Officer, in conjunction with the Office of the City Attorney, in compliance with the administrative procedures established by Chapter 1.18 (Administrative Citation) of this Code.

4. Decisions of the City Clerk shall be appealable to a Hearing Officer established by Chapter 1.18 (Administrative Citation) of this Code. (C) In addition to any other remedies provided in this Chapter or any other law, ordinance, or regulation, and regardless of whether the administrative enforcement process in this chapter has occurred, the Office of the City Attorney may bring a civil action against any person who has violated or is violating any provision of this Chapter.

Any person determined by a court to have violated this Chapter may be subject to civil penalties provided in this Chapter and any other relief ordered by the court. (D) The City Clerk may promulgate rules, regulations, guidelines, and policies to implement and administer the provisions of this Chapter. a. The City Clerk is authorized to establish policies and procedures necessary fo r the implementation of the program, including, but not limited to, public outreach, advertising, marketing, training sessions, seminars, and conducting both public and internal City training programs.
b. The City Clerk may collaborate with internal departments and external partners to promote the program's success.
c. The City Clerk is further authorized to make technical amendments to policies, applications, and filing forms as necessary.
d. The City Clerk is also empowered to allocate and expend general fund resources as budgeted and approved by the City Council for the implementation of the program and to perform such other duties as may be necessary to fulfill the purposes of this ordinance.

SECTION 2. CODIFICATION.

Sections 1.20.010 through 1.20.070, inclusive, of this ordinance shall be codified. The remaining sections of this ordinance shall not be codified.

SECTION 3. SEVERABILITY.

If any section, subsection, sentence, clause, or phrase of this Chapter is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portion of the Chapter. Every section, subsection, sentence, clause, or phrase of this Chapter is severable from all

other sections, subsections, sentences, clauses, or phrases.

SECTION 4. EFFECTIVE DATE.

This ordinance shall take effect and be in full force and effect ____, 2025. Before the expiration of fifteen (15) days after the passage of this ordinance, the entire ordin ance or a summary of the ordinance shall be published once with the names of the members of the City Council voting for and against the ordinance in a newspaper of general circulation published in the City of Hollister, State of California.

INTRODUCED at a regular City Council meeting on September 15, 2025 and adopted as an ordinance of the City of Hollister at a regular City Council meeting on __Adoption Date__ by the following vote:

AYES:

NOES:

ABSENT:

ABSTAINED:

Roxanne Stephens, Mayor

ATTEST: APPROVED AS TO FORM:

Lozano Smith Attorneys at Law

____
Jennifer Woodworth, MMC, City Clerk Mary F. Lerner, City Attorney

I, JENNIFER WOODWORTH, MMC, City Clerk of the City of Hollister, do hereby certify that the attached Ordinance No. __Ordinance Number__ is an original ordinance, or true and correct copy of a City ordinance, duly adopted by the Council of the City of Hollister at a regular meeting of said Council held on __Adoption Date__, at which meeting a quorum was present.

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Hollister on __Adoption Date__.

Jennifer Woodworth, MMC
City Clerk of the City of Hollister

STAFF REPORT

HOLLISTER CITY COUNCIL
MEETING DATE: September 15, 2025
REPORT # City Attorney-2025-11

AGENDA ITEM: CONSIDERATION AND APPROVAL OF AN INTERIM CITY

MANAGER AGREEMENT WITH JIM PIA

DEPARTMENT: City Attorney
DEPARTMENT HEAD: Mary Lerner, City Attorney
STAFF CONTACT: Mary Lerner, City Attorney

RECOMMENDED ACTION: Approve the Interim City Manager Employment Agreement with Jim Pia.

DISCUSSION: The proposed Agreement is for the employment of Jim Pia as the Interim City Manager beginning September 22, 2025. As a CalPERS retired annuitant, Mr. Pia will not work more than 960 hours per fiscal year. The proposed compensation is $134.86 per hour with no additional benefits or accrual of leave time.

FISCAL IMPACT: The maximum financial impact would be $134.86 x 960 hours = $129,465.60.

PREVIOUS COUNCIL OR COMMISSION ACTION: N/A

CEQA: CEQA is inapplicable.

ATTACHMENTS:

1. Interim City Manager Agreement

1 CITY OF HOLLISTER INTERIM CITY MANAGER EMPLOYMENT AGREEMENT

THIS INTERIM CITY MANAGER EMPLOYMENT AGREEMENT (“Agreement”) is made and entered into effective on September 22, 2025 (“Effective Date”) by and between the City of Hollister, a California General Law City (“City”), and Jim Pia (“Manager”). RECITALS

A. City desires to hire Manager on an interim basis and Manager desires to accept an appointment as Interim City Manager of the City of Hollister during recruitment of and until such time as a regular City Manager is appointed and begins employment or until this Agreement expires, whichever occurs first.

B. The City Council of the City of Hollister finds that this position requires specialized skills and experience associated with city administration. C. Manager is willing and fully qualified to serve as the Interim City Manager and perform the related services for the City.

NOW, THEREFORE, in consideration of the foregoing and the mutual covenants herein contained, the City and Manager agree as follows: 1. Duties. City hereby agrees to hire Manager to serve as Interim City Manager to perform the functions and duties authorized in applicable provisions of the Hollister Municipal Code, including without limitation Section 2.08.020 therein, and to perform such other legally permissible duties and functions as the City Council may from time to time assign or as may be necessary or desirable in Manager’s opinion for the efficient management of the City. Manager shall be available for attendance at City Council and other meetings as may be necessary to adequately perform the services under this Agreement. Manager will perform all services under this Agreement consistent with applicable law and without any legal conflicts.

2. Term; Termination. This Agreement shall become effective only upon approval by the City Council of the City of Hollister at a regular City Council meeting, and after it is signed by the Mayor of the City of Hollister and Manager. (A) Manager’s tenure as Interim City Manager shall commence on September 22, 2025, provided that the LiveScan fingerprinting process, including the return of results, has been successfully completed by September 22, 2025, with an absence of disqualifying resul ts. Manager’s tenure shall continue until a permanent City Manager is appointed by the City Council, or until CalPERS retirement regulations require termination of the relationship to maintain Manager’s retirement, or until terminated by the terms of this Agreement. Notwithstanding the beginning employment date, upon the effectiveness of this Agreement, Manager shall have immediate access to such City records as deemed necessary to effectively perform the services hereunder. (B) Manager shall serve at the will and pleasure of the City Council. Nothing in this Agreement shall prevent, limit or otherwise interfere with the right of Manager to terminate this Agreement at any time upon submitting thirty (30) days written notice of termination to the City , or the right of the City Council to terminate this Agreement by simple majority vote (3/5), with or without cause, at any time.

3. Compensation. City shall pay Manager at a rate of $134.86 per hour for his services rendered as Interim City Manager. City shall withhold any necessary amounts required by law to be withheld for independent contractors. Manager shall not be entitled to severance pay, and expressly waives any and all rights with respect to severance pay.

4. Benefits. Manager will receive no benefits beyond the compensation noted in this Agreement and Manager expressly waives any rights to any benefits other than the Compensation noted in this Agreement.

Docusign Envelope ID: 0027CF08-5D91-4B3C-B016-CECF21264B3B