Hollister City Council
September 9, 2026

City of Hollister
City Council Agenda
Special Meeting

Wednesday, September 9, 2026, 5:00 p.m.

City Council Chamber, City Hall
375 Fifth Street, Hollister, CA 95023

Roxanne Stephens, Mayor Ana Cortez, City Manager Rudy Picha, Council Member, District 1 Jennifer P. Thompson, City Attorney Rolan Resendiz, Council Member, District 2
Dolores Morales, Council Member, District 3
Priscilla de Anda, Council Member, District 4

Gordon Machado, City Treasurer

TELECONFERENCE NOTICE
Pursuant to Government Code Section 54953, subdivision (b), the following Council Meeting will include teleconference participation by Council Member Rolan Resendiz from 18595 Skipper Lane, Morgan Hill, CA 95037. This notice and agenda will be posted at the teleconference location. Public comment from this address shall be allowed pursuant to Government Code Section 54953.3.

As of January 1, 2023, the Levine Act (Government Code Section 84308) applies to City Council proceedings involving a license, permit, or other entitlement for use.

Pursuant to Government Code Section 84308, no Council Member shall accept, solicit, or direct a contribution of more than $500 from any party or their agent, or from any participant or their agent, while a proceeding involving a license, permit, or other entitlement for use is pending before the City or for 12 months after a final decision is rendered in that proceeding. Any Council Member who has received a contribution of more than $500 within the preceding 12 months from a party or their agent, or from a participant or their agent, shall disclose that fact on the record of the proceeding and shall not make, participate in making, or in any way attempt to use their official position to influence the decision.

Pursuant to Government Code Section 84308(d), any party to a covered proceeding before the Council is required, and any participant to such a proceeding is strongly urged, to disclose on the record of the proceeding any contribution, including aggregated contributions, of more than $500 made within the preceding 12 months by them or their agent to any Council Member. The disclosure must include the name of the party or participant and any other person making the contribution, if any; the name of the recipient; the amount of the contribution; and the date the contribution was made.

The disclosure shall occur in the manner required under Government Code Section 84308 and any applicable state or local regulations, opinions, or policies. No party or their agent, and no participant or their agent, shall make a contribution of more than $500 to any Council Member during the proceeding or for 12 months after a final decision is rendered in that proceeding.

The foregoing statements do not constitute legal advice, and parties and participants are urged to consult with their own legal counsel regarding the requirements of the law.

NOTICE TO PUBLIC
Persons who wish to address the City Council are asked to complete a speaker’s card and give it to the City Clerk before addressing the City Council. Those who wish to address the City Council on an agenda item will be heard when the presiding officer calls for comments from the audience. City related items not on the agenda will be heard under the Public Input section of the agenda. Following recognition, persons desiring to speak are requested to advance to the podium and state their name and address. If you are joining us by Zoom, please click on the bottom of your screen to raise your hand. If you are joining us by Zoom using a cell phone, please press *9. After hearing audience comments, the public portion of the meeting will be closed, and the matter brought to the City Council for discussion.

Materials related to an item on this agenda submitted to the City Council after distribution of the agenda packet are available for public inspection in the City Clerk’s Office at City Hall, 375 Fifth Street, Hollister, Monday through Friday, 8:30 a.m. to noon, 1:00 p.m. to 4:30 p.m. (City Hall is closed between 12:00 and 1:00 p.m.)

Requests to make presentations to the City Council should be submitted to the City Clerk’s Office at least ten days before the City Council meeting. It is customary for City staff members to review such matters before the formal presentation so that the City Council may have the benefit of all available data. PowerPoint presentations must be presented to the City Clerk by noon on the day of the City Council meeting.

The public may watch the meeting via live stream at:

City of Hollister Website
https://pub-hollister.escribemeetings.com/

Community Media Access Partnership (CMAP):
https://www.youtube.com/@CMAPTVGovHollister

City of Hollister YouTube Channel:
https://www.youtube.com/@cityofhollistercalifornia1489

Public Participation:

The public may attend meetings.

NOTICE: The City Council will hold its public meetings in person, with a virtual option for public participation based on availability. The City of Hollister utilizes Zoom teleconferencing technology for virtual public participation; however, we make no representation or warranty of any kind, regarding the adequacy, reliability, or availability of the use of this platform in this manner. Participation by members of the public through this means is at their own risk. (Zoom teleconferencing may not be available at all meetings.)

If you wish to make a public comment remotely during the meeting, please use the zoom registration link below:
https://us02web.zoom.us/webinar/register/WN_MNOr95ZCQrWzERqd5zRuwQ

In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk’s Office at (831) 636-4300. Notification of 48 hours prior to the meeting will enable the City to attempt to make reasonable arrangements to ensure accessibility City of Hollister City Council Meeting

to this meeting [28 CFR 35.102-35.104 ADA Title II].

Materials related to an item on this agenda submitted to the City Council after distribution of the agenda packet are available for public inspection in the City Clerk’s Office at City Hall, 375 Fifth Street, Hollister, Monday through Friday, 8:30 a.m. to noon, 1:00 p.m. to 4:30 p.m. (City Hall is closed between 12:00 and 1:00 p.m.)

Notice to anyone attending any public meeting: The meeting may be broadcast live on Cable Channel 17 and/or recorded or photographed. Recent City Council meetings may also be viewed at www.CMAP.com and periodically on Cable Channel 17.

To access written translation during the meeting, please click this link:

Para acceder a la traducción durante la reunión, por favor haga clic en el enlace:

https://attend.wordly.ai/join/NLJC-7137

1.CALL TO ORDER

2.PLEDGE OF ALLEGIANCE

3.ROLL CALL

4.CONSENT ITEMS
All items listed under consent agenda will be enacted by one motion authorizing actions indicated for those items so designated. There will be no separate discussion of these items unless requested by a member of the City Council, a staff member, or a member of the public. There will be one public comment period for all items on the Consent Agenda.

4.1 WARRANT REGISTER SEPTEMBER 8, 2026
COUNCIL NEXT STEPS:

Ratify and approve the Warrant Registers for the General-Special-Enterprise- Assessment Funds attached.

5.CLOSED SESSION
Closed Session will be held by the City Council of the City of Hollister to discuss the following matters:

5.1 CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION Initiation of Litigation Pursuant to paragraph (4) of subdivision (d) of section 54956.9 of the Government Code (Deciding Whether to Initiate Litigation) One case

5.2 CONFERENCE WITH LEGAL COUNSEL- ANTICIPATED LITIGATION (Paragraph (2) or (3) of subdivision (d) of Gov. Code § 54956.9) Significant exposure to litigation: One potential case

5.3 PUBLIC EMPLOYEE DISCIPLINE/DISMISSAL/RELEASE

5.4 PUBLIC EMPLOYEE APPOINTMENT
Title: City Attorney

6.CLOSED SESSION REPORT
City of Hollister City Council Meeting

7.COUNCIL BUSINESS

7.1 RESCIND RESOLUTION 2025-127 WHICH APPROVED A FIVE-YEAR LOAN

FROM THE SEWER EXPANSION FUND TO THE GENERAL FUND
COUNCIL NEXT STEPS:

Rescind Resolution 2025-127 which approved a five-year loan from the Sewer Expansion Fund (fund 661) to the General Fund (fund 101) to repay historic negative fund balances in funds 206, 229, 241, 249, and 709.

7.2 JUNE 30, 2026, BUDGET TO ACTUAL FINANCIAL REPORTING FOR THE

AIRPORT FUND
COUNCIL NEXT STEPS:

Receive report and discuss long-term financial stabilization strategies.

7.3 JUNE 30, 2026, BUDGET TO ACTUAL, TREASURY REPORT, BUILDING PERMIT

REPORT, FINANCIAL REPORTS FOR THE GENERAL FUND AND CONTRACTS COUNCIL NEXT STEPS:

Receive and discuss reports and long-term sustainability strategies.

7.4 JUNE 30, 2026, BUDGET TO ACTUAL FINANCIAL REPORTING FOR THE SEWER FUND
COUNCIL NEXT STEPS:

Receive report and discuss long-term financial stabilization strategies.

7.5 JUNE 30, 2026 BUDGET TO ACTUAL FINANCIAL REPORTING FOR THE WATER FUND
COUNCIL NEXT STEPS:

Receive the report and discuss long-term financial stabilization strategies.

7.6 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HOLLISTER

AUTHORIZING THE CITY MANAGER TO EXECUTE A PROFESSIONAL

SERVICES AGREEMENT WITH HANSON BRIDGETT LLP FOR CITY

ATTORNEY/LEGAL SERVICES
COUNCIL NEXT STEPS:

Adopt a Resolution authorizing the City Manager to execute a Professional Service Agreement with Hanson Bridgett LLP for City Attorney/Legal Services

8.ADJOURNMENT

9.VERIFICATION OF AGENDA POSTING
The agenda for the City Council of the City of Hollister Special meeting of Wednesday, September 9, 2026, was posted on the bulletin board at City Hall on Tuesday September 8, 2026, per Government Code Section 54954.2.

City of Hollister City Council Meeting

PUBLIC PARTICIPATION NOTICE
The public may attend meetings in person or watch meetings via live stream at:

City of Hollister Website:
https://hollister.ca.gov/government/agendas___minutes.php

Community Media Access Partnership (CMAP):
http://cmaptv.com/government/

City of Hollister YouTube Channel:
https://www.youtube.com/@cityofhollistercalifornia1489

NOTICE: The City Council will hold its public meetings in person, with a virtual option for public participation based on availability. The City of Hollister utilizes Zoom teleconferencing technology for virtual public participation; however, we make no representation or warranty of any kind, regarding the adequacy, reliability, or availability of the use of this platform in this manner. Participation by members of the public through this means is at their own risk. (Zoom teleconferencing may not be available at all meetings.)

If you wish to make a public comment remotely during the meeting, please use the Zoom registration link below:

https://us02web.zoom.us/webinar/register/WN_MNOr95ZCQrWzERqd5zRuwQ

In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk’s Office at (831) 636-4300. Notification 48 hours prior to the meeting will enable the City to attempt to make reasonable arrangements to ensure accessibility to this meeting [28 CFR 35.102-35.104 ADA Title II].

Materials related to an item on this agenda submitted to the City Council after distribution of the agenda packet are available for public inspection in the City Clerk’s Office at City Hall, 375 Fifth Street, Hollister, Monday through Friday, 8:30 a.m. to noon, 1:00 p.m. to 4:30 p.m. (City Hall is closed between 12:00 and 1:00 p.m.)

Notice to anyone attending any public meeting: The meeting may be broadcast live on Cable Channel 17 and/or videotaped or photographed. Recent City Council meetings may also be viewed at www.CMAP.com and periodically on Cable Channel 17.

To access written translation during the meeting, please scan the QR Code or click this link | Para acceder a la traducción durante la reunión, por favor escanee el código QR o haga clic en el enlace:
https://attend.wordly.ai/join/NLJC-7137
Choose Language and Click Attend | Seleccione su lenguaje y haga clic en asistir

Use a headset on your phone for audio or read the transcript on your device. | Use sus auriculares para escuchar el audio o leer la transcripción en el dispositivo.

STAFF REPORT

HOLLISTER CITY COUNCIL
MEETING DATE: September 8, 2026
REPORT # Will auto populate once assigned

AGENDA ITEM: WARRANT REGISTER SEPTEMBER 8, 2026

DEPARTMENT: Finance Department
DEPARTMENT HEAD: Jessica O'Connell, Finance Director

COUNCIL NEXT STEPS: Ratify and approve the Warrant Registers for the General- Special-Enterprise-Assessment Funds attached.

FISCAL IMPACT: 25/26

ATTACHMENTS:

1. Expense Approval Register AP 8-5-26

2. Expense Approval Register AP 8-7-26

3. Expense Approval Register PYR 8-12-26

4. Expense Approval Register AP 8-13-26

5. Expense Approval Register DP 8-17-26

6. Expense Approval Register DP 8-18-26

7. Expense Approval Register DP 8-18-26 (2)

8. Expense Approval Register AP 8-18-26

9. Expense Approval Register AP 8-21-26

10. Expense Approval Register AP 8-21-26 (2)

11. Expense Approval Register AP 8-25-26

STAFF REPORT

HOLLISTER CITY COUNCIL
MEETING DATE: September 8, 2026
REPORT # Finance-2026-37

AGENDA ITEM: RESCIND RESOLUTION 2025-127 WHICH APPROVED A FIVE-

YEAR LOAN FROM THE SEWER EXPANSION FUND TO THE GENERAL FUND

DEPARTMENT: Finance Department
DEPARTMENT HEAD: Jessica O'Connell, Finance Director

COUNCIL NEXT STEPS: Rescind Resolution 2025-127 which approved a five-year loan from the Sewer Expansion Fund (fund 661) to the General Fund (fund 101) to repay historic negative fund balances in funds 206, 229, 241, 249, and 709.

DISCUSSION:

Rescind Resolution 2025-127, which originally authorized an interfund loan of approximately $2 million.

Even though this decision was made, the finance department never executed this direction. Per legal counsel direction, the City cannot transfer these funds as the City is unable to pay them back within the same fiscal year.

FISCAL IMPACT:

The affected funds will continue to show deficits.

PREVIOUS COUNCIL OR COMMISSION ACTION: Resolution No. 2025-127 was adopted on September 15, 2025.

CEQA: N/A

ATTACHMENTS:

1. Resolution – 2025-127

STAFF REPORT

HOLLISTER CITY COUNCIL
MEETING DATE: September 8, 2026
REPORT # Finance-2026-36

AGENDA ITEM: JUNE 30, 2026, BUDGET TO ACTUAL FINANCIAL REPORTING

FOR THE AIRPORT FUND

DEPARTMENT: Finance Department
DEPARTMENT HEAD: Jessica O'Connell, Finance Director

COUNCIL NEXT STEPS: Receive report and discuss long-term financial stabilization strategies.

DISCUSSION:

Airport Enterprise Fund (Fund 601)
The Airport Enterprise Fund shows stable financial performance for FY 2025–26. Total revenues reached $1,607,873, slightly below the budgeted amount of $1,678,000, while expenses totaled $1,239,252, ending the year well under budget. This produced a positive operating surplus of $368,621, indicating effective cost control and steady revenue activity at the airport. The unaudited fund balance reflects continued financial stability, allowing the airport to support ongoing operational needs and maintain a healthy operating margin.

Federal Aviation Administration Grant Fund (Fund 212)
The Federal Aviation Administration Grant Fund serves as the tracking mechanism for awarded grant funding and the remaining balances available for airport projects. For the period ending June 30, 2026, the fund recorded $115,932 in revenue against budgeted grant funding of $1,050,521, reflecting the fact that reimbursements from the FAA occur only after eligible project expenditures are submitted and approved.

Expenditures totaled $193,805, resulting in a reported $(77,873) negative position. This negative balance does not represent an operational deficit; rather, it reflects grant reimbursements that are pending and expected to be received once processing is complete. Finance will be entering accrued revenue to align the revenues and expenditures in the appropriate recording period. The fund’s activity aligns with typical grant accounting practices—projects often advance ahead of reimbursement, with the fund temporarily carrying the cost.

FISCAL IMPACT:

Overall, the Airport Enterprise Fund remains financially stable, closing the fiscal year with controlled expenditures, steady revenue performance, and a positive operating surplus of $368,62 supporting reliable airport operations and ongoing maintenance needs. In contrast, the FAA Grant Fund reflects a temporary negative balance of

$(77,873) due solely to reimbursement timing, as expenditures are incurred before federal grant reimbursements are released. These pending reimbursements are expected to offset the negative balance once processed, confirming that the fund is functioning as intended. Together, both funds indicate that airport operations and capital projects are well-managed, with not long-term fiscal concerns and a continued capacity to support essential aviation infrastructure improvements.

PREVIOUS COUNCIL OR COMMISSION ACTION: N/A

CEQA: N/A

ATTACHMENTS:

1. 1E-Budget Report Airport Fund as of June 30, 2026

(925,002) 0.89
(9,587) 1.00
(934,589) 0.89
38,583 0.96
801,043 0.91
17,090 0.13
856,716 0.82
(77,873) -
7,599 0.17
(3,397) 0.92
(16,126) 0.29
469 0.03
(76,823) 0.05
2,389 2.39
15,762 -
(70,127) 0.04
81,692 0.12
87,729 0.17
47,109 0.25
9,596 0.60
208,406 0.73
434,532 0.26
364,405 (86.43)
286,532 (67.96)
(286,611)
2,657,501
(77,873)
364,405
286,532
My Budget Report
City of Hollister Group Summary
Variance
Favorable
(Unfavorable)
Original
Total Budget
Current
Total Budget
Fiscal
Activity
Percent
Remaining Category
Fund Balance-Cash Available (Deficit) unaudited $ 2,653,364 Fund: 212 - FED AVIATION ADMIN GRANT
Revenue
430 - INTERGOVERNMENTAL 1,040,934 1,040,934 115,932 490 - OTHER 9,587 9,587 -
Revenue Total:1,050,521 1,050,521 115,932 Expense
701 - PERSONNEL 40,000 40,000 1,417 735 - SERVICES & SUPPLIES 879,500 879,500 78,457 750 - CAPITAL 131,021 131,021 113,931 Expense Total:1,050,521 1,050,521 193,805 Fund: 212 - FED AVIATION ADMIN GRANT Surplus (Deficit):- - (77,873) Fund: 601 - AIRPORT ENTERPRISE FUND
Revenue
401 - TAXES 46,000 46,000 53,599 420 - LICENSES & PERMITS 3,700 3,700 303
430 - INTERGOVERNMENTAL 56,000 56,000 39,874 440 - CHARGES FOR SERVICES 16,000 16,000 16,469 450 - USES OF ASSETS 1,555,300 1,555,300 1,478,477 460 - FINES & FORFEITURES 1,000 1,000 3,389
490 - OTHER - - 15,762
Revenue Total:1,678,000 1,678,000 1,607,873 Expense
701 - PERSONNEL 676,913 676,913 595,221 735 - SERVICES & SUPPLIES 507,694 507,694 419,965 740 - CONTRACTUAL 188,750 188,750 141,641 750 - CAPITAL 15,900 15,900 6,304 4,216 4,216 290,748
8/24/2026 9:25:47 AM
For Fiscal: 2025-2026 Period Ending: 06/30/2026
764 - OTHER EXPENSES 284,527 284,527 76,121 Expense Total:1,673,784 1,673,784 1,239,252 Fund: 601 - AIRPORT ENTERPRISE FUND Surplus (Deficit):4,216 4,216 368,621 Fund: AIRPORT FUND Less Reserves of 20%:

Fund: 620-621 - WATER FUND Surplus (Deficit) Available after reserves of 20%:

For Fiscal: 2025-2026 Period Ending: 06/30/2026
601 - AIRPORT ENTERPRISE FUND 4,216 4,216 368,621
Report Surplus (Deficit):4,216 4,216 290,748
Fund Summary
Variance
Favorable
(Unfavorable)
Original
Total Budget
Current
Total Budget
Fiscal
Activity Fund
212 - FED AVIATION ADMIN GRAN - - (77,873)
Report Surplus (Deficit):

Item: 1D

STAFF REPORT

HOLLISTER CITY COUNCIL
MEETING DATE: September 8, 2026
REPORT # Finance-2026-33

AGENDA ITEM: JUNE 30, 2026, BUDGET TO ACTUAL, TREASURY REPORT,

BUILDING PERMIT REPORT, FINANCIAL REPORTS FOR THE GENERAL FUND

AND CONTRACTS

DEPARTMENT: Finance Department
DEPARTMENT HEAD: Jessica O'Connell, Finance Director

COUNCIL NEXT STEPS: Receive and discuss reports and long-term sustainability strategies.

DISCUSSION:

The Finance Department has completed the Budget-to-Actual analysis for the General Fund through June 30, 2026. This report summarizes the City’s current fiscal position, identifies the deficit before and after applying reserves, and highlights areas requiring improvement for long-term financial sustainability.

FISCAL IMPACT:

General Fund (101)
Before applying any reserves, the General Fund reflects a negative operating position, driven primarily by expenditures outpacing revenues.

Key Contributors:
• Capital expenditures: $852,172, significantly above the $526,100 budget. • Personnel costs: $30,544,337, exceeding the adopted budget of $29,652,856. • Services & supplies and contractual costs: Combined more than $13.6 million. • Revenue softness in Franchise Fees, Charges for Services, and Licenses & Permits.

The General Fund reflects an operating deficit of $179,475, highlighting a structural imbalance between revenues and expenditures. The City of Hollister maintains a reserve policy requiring 20% of annual General Fund expenditures to be held in reserve. Applying this reserve requirement reduces the amount of discretionary funding available to offset year-end deficits. As a result, the City does not have sufficient unrestricted reserves to fully absorb the current operational shortfall, underscoring the need for long-term financial corrective action.

Financial Activity Analysis
Revenue Overview
• Taxes and Intergovernmental Revenues: Both categories performed slightly above budget, helping to stabilize overall revenues.
• Licenses & Permits, Franchise Fees, Charges for Services, Fines & Forfeitures:

These categories came in below projections, indicating softer activity levels or optimistic revenue assumptions.

Expenditure Overview
• Personnel Costs: The largest cost driver, exceeding the budget by nearly $900,000.
• Capital Outlays: Surpassed the budget by approximately $326,000, suggesting cost increases or expanded project scopes.
• Other Expenses: Came in significantly below budget ($7.0M actual vs. $10.0M budget), providing partial relief to overall spending pressures

CONCLUSION
The City must strengthen its structural budget alignment by ensuring that recurring revenues are sufficient to cover recurring costs and reduce reliance on reserves for annual operations. Continued overspending on personnel cost highlights the need for deeper review of cost drivers and efficiency opportunities, while capital projects would benefit from tighter scoping, stronger budgeting discipline, and improved preventive maintenance planning. Revenue forecasting also requires refinement, as several categories underperformed expectations. Finally, to support long-term financial resilience, the City should pursue a multi-year strategy to rebuild and safeguard reserves in accordance with policy.

PREVIOUS COUNCIL OR COMMISSION ACTION: N/A

CEQA: N/A

ATTACHMENTS:

1. 1A-Budget Report General Fund as of June 30, 2026

2. 1F-Treasury report, June 30, 2026

3. 1G-Building Permits, June 30, 2026

4. 1H-Contracts, June 30, 2026

101,749 0.004
(99,387) 0.08
(508,856) 0.10
669,036 0.09
(123,688) 0.03
60,958 0.70
(32,993) 0.20
(3,411,425) 0.29
2,422 2.42
(3,342,185) 0.06
(901,481) (0.29)
2,190,131 0.22
6,165 0.001
(326,072) (0.62)
(2,971,687) (0.30)
354 0.00
(2,002,590) (0.04)
(1,339,595)
1,968,561
(10,502,956)
(8,534,395)
Fund: GENERAL FUND Less Reserves of 20%:

Fund: 101 - GENERAL FUND Surplus (Deficit) Available after reserves of 20%:

Fund: 101 - GENERAL FUND Surplus (Deficit) Available:

For Fiscal: 2025-2026 Period Ending: 06/30/2026
8/24/2026 8:11:39 AM
401 - TAXES 25,488,000 25,488,000 25,589,749 701 - PERSONNEL 29,652,856 29,642,856 30,544,337 750 - CAPITAL 526,100 526,100 852,172 765 - DEBT 462,000 462,000 461,646 450 - USES OF ASSETS 1,000 1,000 3,442
764 - OTHER EXPENSES 10,005,484 10,005,484 7,033,797 Expense Total: 56,455,566 56,455,566 52,514,782 Fund: 101 - GF Current Year Activity Surplus (Deficit): (778,095) (778,095) (179,475) 735 - SERVICES & SUPPLIES 10,089,977 10,089,977 7,899,846 740 - CONTRACTUAL 5,719,149 5,729,149 5,722,984 Revenue Total: 55,677,471 55,677,471 52,335,307 Expense
450 - USES OF ASSETS 86,620 86,620 147,578 460 - FINES & FORFEITURES 168,500 168,500 135,507 490 - OTHER 11,771,243 11,771,243 8,359,818 420 - LICENSES & PERMITS 5,304,700 5,304,700 4,795,844 430 - INTERGOVERNMENTAL 7,294,908 7,294,908 7,963,944 440 - CHARGES FOR SERVICES 4,257,500 4,257,500 4,133,812 Fund: 101 - GENERAL FUND
Revenue
410 - FRANCHISES 1,305,000 1,305,000 1,205,613 My Budget Report
City of Hollister Group Summary
Variance
Favorable
(Unfavorable)
Original
Total Budget
Current
Total Budget
Fiscal
Activity
Percent
Remaining Category
Fund Balance-Cash Available (Deficit) unaudited $ 2,148,036 /ƚĞŵ͗ϭ

Investment June 2025 June 2026 Change Current Yield
Local Agency Investment Fund (LAIF)$35,153,423 $36,662,449 $1,509,026 4.40% Wells Fargo Government Money Market $13,147,112 $13,658,302 $511,190 3.51% Multi-Bank Securities / Pershing $7,283,566 $6,523,220 ($760,345)3.96% TOTAL PORTFOLIO $55,584,101 $56,843,971 $1,259,870 4.14% Liquidity: Based on projected cash flows and available liquid investments, the City is expected to meet its operating cash requirements for the next six months.

PORTFOLIO BY INVESTMENT

MANAGEMENT DISCUSSION

COMPLIANCE AND LIQUIDITY RECOMMENDED COUNCIL ACTION
The investment portfolio was managed in accordance with the City of Hollister Investment Policy and the investment provisions of the California Government Code. Staff has reviewed the portfolio and determined that the investments were in compliance with the City's Investment Policy as of June 30, 2026.

Receive and file the Monthly Treasury Report for the period ended June 30, 2026.

As of June 30, 2026, the City's cash and investment portfolio had a fair market value of approximately $56.8 million, an increase of approximately $1.3 million from June 30, 2025. During February 2026, the City transferred $873,021.48 from the Multi-Bank Securities investment account to the Wells Fargo operating account. The transfer was a movement between City accounts and was not an investment loss. At June 30, 2026, the portfolio included approximately $36.7 million in LAIF, $13.7 million in a government money market fund, and $6.5 million in cash and brokered certificates of deposit held through Multi-Bank Securities. $56,843,971 $1,259,870 4.14%$53,299.14

CITY OF HOLLISTER - MONTHLY TREASURY REPORT
Reporting Period: June 30, 2026 | Comparative Period: June 30, 2025 Total Portfolio Year-over-Year Change Current Weighted Yield June Interest Earned -
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
$40,000,000
Local Agency Investment Fund (LAIF)Wells Fargo Government Money Market Multi-Bank Securities / Pershing Do
l
l
a
r
s
Investment Balances by Type -June 2025 vs. June 2026
June 2025 Ending Balance June 2026 Ending Balance
City of Hollister Monthly Treasury Report Page 1 of 2
Item:1F

Investment / Account
June 2025 Ending
Balance
June 2026 Ending
Balance $ Change % Change
June 2025
Yield
June 2026
Yield Notes
Local Agency Investment Fund (LAIF)$35,153,423 $36,662,449 $1,509,026 4.29%3.92%4.40%Highly liquid pooled investment account Wells Fargo Government Money Market $13,147,112 $13,658,302 $511,190 3.89%4.20%3.51%Highly liquid government money market fund Multi-Bank Securities / Pershing $7,283,566 $6,523,220 ($760,345)-10.44%4.37%3.96%Cash and brokered certificates of deposit TOTAL PORTFOLIO $55,584,101 $56,843,971 $1,259,870 2.27%4.05%4.14% Activity June 2025 June 2026 $ Change % Change
Interest / Dividends $51,932.53 $53,299.14 $1,366.61 2.63% Withdrawals / Transfers Out -$14,248.72 $14,248.72 0.00% Monthly Market Valuation Adjustment $5,604.22 ($11,788.42)($17,392.64)-310.35% Date Account Activity Amount Council Explanation
2/19/2026 Multi-Bank Securities / Per Transfer to Wells Fargo op $873,021.48 Measure June 2025 June 2026 $ Change
Par / Principal / Shares $55,577,382.14 $56,880,709.55 $1,303,327.41 Fair Market Value $55,584,101.00 $56,843,971.36 $1,259,870.36 Unrealized Gain / (Loss)$6,718.86 ($36,738.19)($43,457.05) Accrued Interest $6,352.68 $44,636.64 $38,283.96
• MBS yields are calculated from the detailed holdings using par-weighted estimated yields.

Note: The June 2026 withdrawal represents the $14,248.72 income distribution transferred from MBS/Pershing to Wells Fargo during June. The separate $873,021.48 February transfer is disclosed below as significant fiscal-year activity and is not included in this monthly chart.

FAIR VALUE AND UNREALIZED GAIN / (LOSS)

REPORTING NOTES
• The year-over-year comparison uses fair market value at June 30 of each year. • The February 19, 2026 transfer of $873,021.48 moved funds from the MBS investment account to Wells Fargo and is not an investment loss. • Monthly market valuation adjustments are shown separately from cash withdrawals and interest earnings.

PORTFOLIO COMPARISON - JUNE 2025 VS. JUNE 2026
Balances are presented at fair market value based on the holdings detail supplied by Finance.

MONTHLY ACTIVITY COMPARISON

SIGNIFICANT ACTIVITY AFFECTING THE YEAR-OVER-YEAR COMPARISON The City transferred $873,021.48 from the investment account to its Wells Fargo operating account. This was a movement of City funds and not an investment loss. Because this report presents total cash and investments, the transfer does not reduce the total portfolio when both accounts are included. ($20,000.00)
($10,000.00)
-
$10,000.00
$20,000.00
$30,000.00
$40,000.00
$50,000.00
$60,000.00
Interest / Dividends Withdrawals / Transfers Out Monthly Market Valuation Adjustment
June Investment Activity:2025 vs. 2026
June 2025 June 2026
June 2026 Ending
Balance; Local Agency
Investment Fund (LAIF);
$36,662,449; 65%
June 2026 Ending
Balance; Wells Fargo
Government Money
Market; $13,658,302;
24%
June 2026 Ending
Balance; Multi-Bank
Securities / Pershing;
$6,523,220; 11%
June 2026 Portfolio Composition
Local Agency Investment Fund (LAIF)
Wells Fargo Government Money
Market
Multi-Bank Securities / Pershing
City of Hollister Monthly Treasury Report Page 2 of 2

Prepared by:Building Division
Permit Type Issued Completed Category Issued Completed Total Activity
New Residential Construction 34 21 Residential 73 51 124 Accessory Dwelling Units (ADUs)6 0 Commercial 32 7 39
Residential Remodels 20 3 Stand-Alone 120 99 219
Commercial Remodels 13 3
New Commercial Construction 10 2
Solar 47 52
Swimming Pools 2 0
Electrical 11 9
Mechanical 13 4
Plumbing 13 5
Demolition 11 4
Total 180 103
Project Type Status
Wisk Aero- Battery Storage Bunker (H1)Commercial Ready to Issue 1561 Cushman Street- Casa Del Pinar Multifamily Ready to Issue 910 Fourt Street- Starbucks TI Commercial Permit Issued 89 Third Street- Ganado Feed Commercial Permits Issued
1149 Powell Street- Daycare Facility Commercial Completed 1110 E Park Street- Shops 3 Commercial Permit Issued
1891 Airway Drive- TI (Joby's)Commercial Ready to Issue 802 Industrial Drive- Rovella's Gym Commercial Ready to Issue 400 San Benito Street #102- Teriyaki Madness Commercial Permit Issued 710 San Benito Street Commercial/MF Completed
210 San Benito Street- Vet Clinic Commercial Completed
40 Santa Ana Road- Car Wash to Laundromat Commercial Permit Issued Villa Apartments for Low-Income Seniors Commercial Ready to Issue

Project Type Status •         23% increase in non-solar permit activity compared with January–March.

KB Home- Everglen Residential Ongoing •         Increased activity across several residential and commercial permit categories.

Tri-Pointe Homes- Willow Landing Residential Ongoing •         Major development projects continued advancing through the permitting and construction process.

Annotti Landing Residential/MF Permits Issued •         Improved focus on project coordination, tracking, and timely progression.

West of Fairview- Phase 2 Residential Ongoing
West of Fairview- Phase 3 Residential Ongoing
Richmond American Homes- Verdant Residential Ongoing
Stonebridge Homes- Aspen Park Residential Ongoing
Department Highlights
• Continue improving permit processing, plan review, inspection coordination, and project tracking. • Continue proactively identifying and addressing items delaying active development projects. • Progressing on implementation of permitting technology and online services. • Improve coordination between Building, Planning, Engineering, Finance, and other departments. • Continue developing standardized procedures, checklists, and reporting tools to improve consistency and accountability.
• Monitor quarterly permit activity to identify development trends and measure operational progress. • Continue supporting residential and commercial development while improving customer service and turnaround times.

Month: April through June 2026
Major Projects
Completed Projects
• 103 permits completed during the reporting period.
• 210 San Benito Street Veterinary Clinic completed.
• Continued advancement of major residential and commercial development projects. • Worked with applicants and project teams to address outstanding items and move projects toward issuance and completion.
• Wisk Aero advanced from pending CUPA requirements to ready-to-issue status. • 180 total permits issued during the quarter.
• Non-solar permit issuance increased from 108 to 133, representing approximately 23% growth over the previous quarter.
• ADU permits increased 100%, from 3 to 6.
• Residential remodel permits increased 100%, from 10 to 20. • New commercial construction permits increased 25%, from 8 to 10. • Commercial remodel permits increased from 12 to 13.
• Plumbing permits increased from 6 to 13.

Tract Homes
Executive Summary
Building Permit Activity Permit Count by Category
Performance Trend
Note: Stand-alone permits are permits issued independently and not associated with a larger building permit or construction project. Examples include electrical, plumbing, mechanical, roofing, water heater replacement, and solar permits.

City of Hollister Monthly Building Activity Report
The Building Division remained active throughout April through June 2026, with continued permit activity and measurable growth in several key development categories. Compared with the previous reporting period, permits issued for accessory dwelling units and residential remodels doubled, while new commercial construction increased by 25 percent. The Division also experienced increased activity in plumbing, mechanical, demolition, and other improvement-related permits. In addition to ongoing permit activity, major commercial and residential projects continued to advance through the development process, with projects moving toward permit issuance and completion. Staff continued supporting active residential subdivisions, commercial development, plan review, inspections, permit processing, and customer service throughout the reporting period.

Looking Ahead
Residential Commercial Stand-Alone
Issued Completed

Prepared by:Building Division
Permit Type Issued Completed Category Issued Completed Total Activity
New Residential Construction 29 23 Residential 41 38 79 Accessory Dwelling Units (ADUs)2 1 Commercial 11 9 20
Residential Remodels 6 5 Stand-Alone 27 27 54
Commercial Remodels 4 5
New Commercial Construction 3 2
Solar 59 18
Swimming Pools 0 0
Electrical 6 3
Mechanical 3 1
Plumbing 1 5
Demolition 1 0
Total 114 63
Project Type Status
1969 Airway Drive (wisk Aero)-Ev Charging Station for Hangar 2 Commercial In Plan review 1969 Airway Drive (wisk Aero)-TI for Hangar 2 Commericial Approved 2000 Aerostar Way (Wisk Aero)- TI for Hangar 1 Commercial In Plan review 1561 Cushman Street- Casa De Pinar Multifamily Ready to Issue 1110 E Park Street- Mirastar Credit Union TI Commercial Pending Plan Check 591 Tres Pinos Road-Safeway Pharmacy Expansion Commercial Ready to Issue 1709 Airline HW#111-TI for Private Tutoring Center Commercial In Plan review 491 Tres Pinos Road-Spirit Halloween Commercial Permit Issued 1296 Fourth Street TI for Future tenant Commercial In Plan review Villa Apartments for Low-Income Seniors Commercial/MF Completed

Project Type Status •  July recorded 114 permits issued and 63 permits completed.

KB Home- Everglen Residential Ongoing
Tri-Pointe Homes- Willow Landing Residential Ongoing
Annotti Landing Residential/MF Permits Issued
West of Fairview- Phase 2 Residential Ongoing
West of Fairview- Phase 3 Residential Ongoing
Richmond American Homes- Verdant Residential Ongoing
Stonebridge Homes- Aspen Park Residential Ongoing
Department Highlights
demonstrating continued housing development activity.
significant portion of Building Divison activity.
•  Solar remained the highest-volume permit type
• 29 new residential construction permits were issued, during the month, with 59 permits issued.

City of Hollister Monthly Building Activity Report
The Building Division remained active throughout July 2026, with continued residential and commercial development occurring throughout the City. A total of 114 permits were issued and 63 permits were completed during the month. Residential construction and solar activity remained strong, while several major commercial projects continued progressing through plan review, permit issuance, and construction. Staff continued supporting active development through plan review, inspections, permit processing, project coordination, and customer service.

Looking Ahead
•Continue supporting active residential subdivision construction and inspections. •Advance commercial projects through plan review, permit issuance, and construction. •Continue processing residential remodels, additions, solar, and stand-alone permits. •Proactively identify and address outstanding items affecting active development projects. •Continue improving permit processing, inspection coordination, and project tracking. •Continue progressing implementation of permitting technology and online services. •Maintain coordination between Building, Planning, Engineering, Finance, and other departments to support timely project progression.

Month: July 2026
Major Projects
Completed Projects
•63 permits were completed during July.
•Continued completion of new residential construction and residential improvement projects. •Residential solar installations continued reaching completion. •Commercial improvement projects continued progressing through final inspection and completion. •Staff continued working with applicants and project teams to resolve outstanding items and move projects toward completion. •114 total permits issued during July.
•63 permits completed during the month.
•29 new residential construction permits issued and 23 completed. •59 solar permits issued, representing the highest-volume permit category for July. •Continued activity across residential remodel, commercial remodel, new commercial construction, and stand-alone permit categories.
•Major projects continued advancing through plan review, approval, permit issuance, and construction. •Active residential subdivision development continued throughout the City. •Continued focus on project coordination, permit processing, inspections, and customer service.

Tract Homes
Executive Summary
Building Permit Activity Permit Count by Category
Performance Trend
Note: Stand-alone permits are permits issued independently and not associated with a larger building permit or construction project. Examples include electrical, plumbing, mechanical, roofing, water heater replacement, and solar permits.
•  Residential development continued to represent a
Residential Commercial Stand-Alone
Issued Completed

Department Vendor Contract / Service Purpose Term FY 2025-26 Contract Amount/Basis Airport 1200.areo Software as a Service Agreement Service Agreement providing airport operations tracking software, including live aircraft tracking, operational reports, notifications, airspace replay, noise complaint tools, and support.
08/09/2024 – 08/09/2025 3,600.00
Airport Granite Rock Company Runway 6 Safety Improvements (AIP 03-06- 0105-26)
Construction of Runway 6 Safety Improvements at Hollister Municipal Airport. FAA and Caltrans Division of Aeronautics funded.

July 2023 - ongoing 3,315,694.00
Airport Silicon Valley Paving, Inc.Airport Operations Area (AOA) Perimeter Fence Relocation
Construction contract for relocation and replacement of approximately 2,100 linear feet of airport perimeter fencing.

Project Completion $116,931 construction contract (FAA grant-funded project).

City Attorney Lozano Smith, LLP City Attorney Professional Services Agreement
Provides City Attorney services, including general legal counsel, legal advice, ordinance and resolution review, attendance at meetings, and other municipal legal services. 06/21/22 - Ongoing $24,000/month retainer + hourly for additional services
City Clerk's Office Best Best & Krieger Legal Service Contract Annual subscription fee for campaign on financial electronic filing software to meet state requirements.
08/21/2019 Various Rates
City Clerk's Office Docusign Annual subscription fee for records repository 09/08/2020 27,799.20 City Clerk's Office eScribe Subscription Agreement Annual subscription fee for electronic signature software 05/15/2023 18,300.00 City Clerk's Office Netfile Agreement for the Performance of Services Annual subscription fee for public records request software.09/16/2019 – 09/30/2024 4,560.00 City Clerk's Office NextRequest Annual subscription fee for archiving software for Police Dept social media 10/18/2021 11,000.00 City Clerk's Office NextRequest (Archive Social)Annual subscription fee for AI translation services Not specified Not Stated City Clerk's Office Wordly General Services Agreement Annual subscription fee for agenda management software. Providing AI translation for public meetings.
02/15/2025 – 02/15/2028 6,375.00
City Manager / Special
Events
American Global Security, Inc.Hollister Independence Rally Security Services
Temporary armed and unarmed security services for the July 4–5, 2025 Hollister Independence Rally, including roving guards, supervisors, beer-garden security, public- street patrols, and event security support.

July 3–5, 2025 $264,497.52
Engineering / Public
Works
Wallace Group, Inc.On-Call Engineering Services On-call engineering, surveying, plan review, design, mapping, environmental compliance, and related engineering support services provided through task orders. 5/6/2024 - 5/6/2029 Up to $999,000 annually (task-order based Finance 4LEAF Professional Service Agreement Building professional services.Three year service contract, to not exceed $1,500,000 per year.
07/01/2024 – 06/30/2027 1,500,000.00
Finance APGn Inc.General Services Agreement Providing maintenance, warranty, inspection, remote monitoring, and preventative maintenance services for the City’s aeration/turbo blower equipment at the Domestic Wastewater Treatment Plant.
03/01/2026 – 03/01/2031 566,125.00
Finance Chavan and Associates, LLP Providing independent financial audit services for the fiscal years ending June 30, 2023, 2024, and 2025
03/03/2026 – Audit completion
through FY25
201,000.00
Finance Clark Pest Control Year-Round Commercial Pest-Away Rodent monitoring. Invoiced monthly. For 190 Maple Street Suite A.06/14/2024 – Ongoing 1,421.00 Finance Eric White Professional Service Agreement Consulting support for Acting Building Official services, permit administration, permitting workflow improvements, construction management support, operational support, and revenue/fee tracking coordination
05/04/2026 – 08/31/2026 32,000.00
Finance H Financial Solutions Audit assistance Providing nonattest accounting support services to assist with the City’s audit process.

The scope includes preparing supporting schedules and reconciliations, assisting with trial balance preparation, PBC workpapers, GASB 68 and GASB 75 entries/reconciliations, compensated absences, loan reconciliations, GASB 96/GASB 87 support, grants reconciliation, SEFA, and grants roll-forward support. 03/03/2026 – Ongoing 90,000.00
Finance Hollister Hotel LP Operations Covenant Agreement COH agrees to pays the operator an incentive amount based on collected TOT (Transient Occupancy Tax).
01/16/2018 – 01/15/2028 $2,000,000 cap
Finance KBA DOCUSYS, Inc Lease Agreement COH leasing copier equipment.05/07/2021 – 08/07/2026 7,188.00 Finance Quadient Leasing Government Product Lease Agreement COH leasing mailing/stuffing equipment.04/25/2022 – 04/24/2027 4,185.36 Finance Recology South Valley DBA Recology
SBC
Franchise Agreement Franchise Agreement and includes franchise fees, the main purpose of the contract is for Recology to provide collection services
11/01/2018 – 10/31/2028 Various Rates
Finance Roadshows Inc.Consulting Services Agreement to providing consulting, promotion, sponsorship, vendor/talent coordination, marketing, and operational management support for the 2026 Hollister Independence Rally.
12/15/2025 – 08/31/2026 $40,000 plus incentive
Finance San Felipe Storage LLC Rental Agreement COH Recreation department for storage space rental (space number F18) located at 1571 San Felipe Rd. Month rate of $240 (intial month rate is $310). 08/18/2021 – Ongoing 2,880.00
Finance San Felipe Storage LLC Rental Agreement COH Recreation department for storage space rental (space number F19) located at 1571 San Felipe Rd. Month rate of $216 (intial month rate is $266). 08/18/2021 – Ongoing 2,592.00
Finance San Felipe Storage LLC Rental Agreement COH Recreation department for storage space rental (space number F30) located at 1571 San Felipe Rd. Month rate of $234 (intial month rate is $284). 01/18/2022 – Ongoing 2,808.00

CITY OF HOLLISTER
FY 2025-26 CONTRACT REPORT
1 Item: 1Kem :

Department Vendor Contract / Service Purpose Term FY 2025-26 Contract Amount/Basis

CITY OF HOLLISTER
FY 2025-26 CONTRACT REPORT
Finance Santa Cruz Regional 911 Communications Services Agreement Providing public safety communications/dispatching services for the City, including 9-1- 1 answering, police/fire dispatching, emergency medical dispatch protocols, CAD system use, radio/telephone recording, and related communications support 07/01/2025 – 06/30/2028 Various Rates Formula
Finance The Barragan Family Survivor's Trust California Association of Realtors - C.A.R.

Form CL, Revised 12/15
Rental property agreement for 357 & 361 Fifth St.12/01/2021 – 11/30/2026 12,152.85 Finance Veolia Water West Operating Services,
Inc.

Sixth Amendment to the Agreement for
Operations and Maintenance Service
Amends the existing operations and maintenance services agreement for the City’s Membrane Bioreactor Water Reclamation Facility / Domestic Wastewater Treatment Facility.
08/03/2010 – 08/02/2026 Not Stated
Finance Wallace Group, Inc.IWWTP Inundation Study Expenditure Task Order / Notice to Proceed in assisting the City with developing an Inundation Study for the IWWTP
04/24/2026 50,500.00
Finance Wildan Financial Services General Services Agreement Preparing the Cost Allocation Plan, allocation methodology/model, indirect cost rates, and support for State Controller’s Office submission.
11/01/2024 – 06/30/2026 20,000.00 Finance Yeh and Associates, Inc.Proposal IWTP levee survey and field report.Proposal – Proposal 2,905.00 Human Resources ARCpoint Labs DOT Drug and Alcohol Testing Service Agreement
ArcPoint Labs is the contracted Lab for the DMV/DOT pull program for random drug testing.
05/06/2024 – 05/05/2025 Various Rates
Human Resources ARCpoint Labs DOT Drug and Alcohol Testing Service Agreement
ArcPoint Labs is the contracted Lab for the DMV/DOT pull program for random drug testing.
01/01/2026 – 12/31/2026 Various Rates
Human Resources Data works Plus DataWorksPlus is the software used by the City to print EE ID badges.05/01/2025 – 04/30/2026 Various Rates IT DocuSign Document management provider for eSignature Enterprise Pro and Support.12/18/2024 – Ongoing 17,202.00 IT Etheric Networks Internet service provider. Invoiced monthly, no set contract amount. Service contract terms are on an automatic month-to-month basis
12/10/2015 – Ongoing Not Stated
IT Icon Cloud Solutions Icon Cloud Solutions Service Agreement VoIP Desk Phone provide.06/20/2024 – 06/19/2026 99,779.52 IT Revize Software Systems Revize Web Service Sales Agreement Website provider. Five-year agreement with an annual fee of $6,900 for the first five years. Total contract amount is $47,440.
05/12/2022 – 05/11/2027 6,900.00
IT Surveillance Grid Integration, Inc.Security camera system. Invoiced semi-annually for GRIDASSURE program charges, annual subscritions & licenses.
07/01/2024 – 06/30/2025 81,800.36 IT Surveillance Grid Integration, Inc. -
Darktrace
Direct partner of Darktrace and provides additional support with integration of products. Security and monitoring.
08/04/2024 – 12/22/2027 124,500.80
Parks & Recreation West Coast Arborists Professional Service Agreement To retain contactor to provide City-wide tree trimming and related services.05/17/2021-05/17/2024; with three year extension
Planning PlaceWorks Inc.2040 General Plan Update &
Environmental Review
Professional planning services for the 2040 General Plan Update, Environmental Impact Report (EIR), Climate Action Plan (CAP), Inclusionary Housing Program, public outreach, transportation analysis, CEQA compliance, and adoption support. 2/3/2022 - ongoing through
completion of the project.
$2,303,185 authorized contract amount (plus up to
$40,000 contingency)
Police Centegix - WeTIP WE TIP EXTRAORDINARY REWARD

AGREEMENT
Crime reporting hotline program.10/01/2025 – 09/30/2026 Not Stated Police Sun Ridge Systems, Inc.Records Management System (RMS) Software & Implementation
Purchase, installation, configuration, data conversion, training, and implementation of a Records Management System (RMS), Mobile RMS, Property & Evidence Module, Public Access Portal, interfaces, and first-year software support for the Police Department.

Effective February 4, 2025;
software support includes the
first year, with annual support
renewable thereafter.
$470,532
Public Works TK Elevator Corporation Contact Extension to No. 080420-TKE 03/16/2021-08/28/2025 484,000.00 Public Works
(Wastewater)
ABLE Construction Group, Inc.Sunnyslope Rd./Highland Dr. Sewer Main Repair
Emergency repair/replacement of approximately 30 feet of 8-inch sewer main, including excavation, bypass pumping, restoration, and related work. 4/1/2026 - project completion
within 30 working days after
Notice to Proceed
$25,730 (plus contingency not to exceed $30,00)
Public Works (Water)Clark Pest Control Year-Round Commercial Pest-Away Rodent monitoring. Invoiced monthly.12/01/2024 – 12/01/2025 2,544.00 Public Works (Water)SCS Engineers Inc.Professional Services Agreement Providing services for the response to the California Department of Toxic Substance Control John Smith Landfill Notice of Deficiency.
03/24/2026 – 12/31/2028 27,200.00
Public Works (Water)Sunnyslope County Water District Urban Water Management Plan Update 07/01/2021 – Ongoing Not Stated Public Works (Water)Tesco Controls Annual Service Contract Package Extended Preventive Maintenance and System Service (EMASS) for water/sewer control systems.
07/01/2025 – 06/30/2026 9,500.00 Public Works (Water)Union Pacific Railroad Company Public Highway At-Grade Crossing Agreement
Work connected to the North Street public highway at-grade crossing, including reconstruction/widening, signal preemption, traffic signal interconnection, and related railroad work.
04/02/2020 – Ongoing 25,000.00 Public Works (Water)Wald Ruhnke & Dost Architecture LLP Professional Services Agreement Providing on-call architectural and landscape architectural design services for the City on an as-needed basis.
04/14/2024 – 04/15/2029 Not Stated
2Page 138 of 156

Department Vendor Contract / Service Purpose Term FY 2025-26 Contract Amount/Basis

CITY OF HOLLISTER
FY 2025-26 CONTRACT REPORT
Public Works (Water)WSP USA Professional Services Agreement Provide monitoring and reporting services for the John Smith Road Class I Landfill.

Amount not to exceed $25,000 annually.
03/24/2025 – 03/24/2028 25,000.00
Public Works /
Engineering
Rapid Services LLC dba Rapid Grading
Services
Section 2 Grind & Overlay Road
Rehabilitation Project, CIP C2212
Roadway rehabilitation, asphalt overlay, base repairs, ADA curb ramps, sidewalk, curb, and gutter improvements at multiple City locations
Executed 3/16/2026; 60
working days from Notice to
Proceed
$901,909.39
Public Works / Facilities ClearSpot Hollister, LLC (PS Solar Project 4, LLC)
Power Purchase Agreement (Solar Facility)Purchase of electricity generated by a solar photovoltaic facility located on City-owned property. The agreement also includes the related ground lease and financing documents.

January 2010, Res. 2010-06 - 30
years from Commercial
Operation Date
Variable – Based on electricity purchased under the
PPA
Public Works/
Engineering
Kimley-Horn and Associates, Inc.On-Call Engineering Services Provides engineering services on an as-needed, task-order basis, including planning, design, surveying, cost estimates, construction support, development review, utility plans, mapping, and related engineering services.
5/06/2024 - 05/05/2029 Up to $999,000 annually; task-order based Recreation / Parks Smith & Enright Landscaping, Inc.Parks, Landscape & Sound Wall Maintenance Services
Landscape maintenance for City parks, sound walls, retention ponds, basins, trails, medians, and related public facilities.

Active through June 30, 2026 $23,971.64 per month (includes 3.5% CPI adjustment); additional services authorized up to
$25,000 as approved.

Note: This report includes active agreements in effect during FY 2025-26. Contract amounts reflect the current authorized contract amount, including approved amendments where applicable. Certain agreements (e.g., on-call services, power purchase agreements, and cost-sharing agreements) do not have a fixed annual expenditure and are identified accordingly. 3Page 139 of 156

STAFF REPORT

HOLLISTER CITY COUNCIL
MEETING DATE: September 8, 2026
REPORT # Finance-2026-35

AGENDA ITEM: JUNE 30, 2026, BUDGET TO ACTUAL FINANCIAL REPORTING

FOR THE SEWER FUND

DEPARTMENT: Finance Department
DEPARTMENT HEAD: Jessica O'Connell, Finance Director

COUNCIL NEXT STEPS: Receive report and discuss long-term financial stabilization strategies.

DISCUSSION:

The Sewer Enterprise Fund shows strong and stable financial performance for the period ending June 30, 2026. Revenues exceeded budgeted expectations, reaching $17,283,493, driven largely by higher-than-anticipated service receipts. Operating expenses remained well below budget at $12,661,793, generating a substantial operational surplus of $4,621,701.

The Sewer Expansion Fund shows strong financial performance for the fiscal period ending June 30, 2026, driven primarily by heightened development activity and increased demand for system capacity improvements. Revenues significantly outperformed expectations, totaling $3,596,435, well above the adopted budget of $1,265,000. This growth reflects both rising connection fees and one -time development-related charges that support the long-term expansion of the City’s sewer infrastructure.

Expenditures remained exceptionally low at $82,639, far below the budgeted amount of $3,352,500. This variance is primarily due to the timing of planned capital projects, many of which have not yet begun or are still in early engineering phases. As a result, the Fund achieved a substantial surplus of $3,513,796, providing the City with a strong foundation to support future sewer system upgrades and capacity-enhancing capital investments.

The Storm Drain Fund is experiencing a severe and persistent financial deficit for the fiscal period ending June 30, 2026. While total revenues amounted to only $273,099, expenses reached $6,902,605, resulting in a substantial current -year deficit of $6,629,506. The primary weakness driving this imbalance is the high cost of capital infrastructure needs, particularly aging storm-drain systems that require extensive

rehabilitation or replacement. Operating revenues are largely derived from service charges and are insufficient to support the scale of required investments. Contractual costs and capital project expenditures continue to outpace the Fund’s revenue capacity, revealing a structural mismatch between ongoing needs and available funding.

FISCAL IMPACT:

Overall, the Sewer Funds demonstrate a strong and stable financial position. The Sewer Enterprise Fund continues to generate reliable surpluses supported by solid revenue performance and disciplined cost management. The Sewer Expansion Fund is similarly well-positioned, with revenues far exceeding expenditures and providing substantial capacity for future system improvements. Although the Storm Drain Fund faces significant structural deficits and capital pressures, its challenges do not overshadow the overall positive standing of the broader sewer system. In aggregate, the Sewer Funds provide a financially resilient foundation that supports ongoing operations, future growth, and long-term infrastructure planning. Continued strategic management and targeted investment will ensure that these positive trends are sustained across the entire sewer utility.

PREVIOUS COUNCIL OR COMMISSION ACTION: N/A

CEQA: N/A

ATTACHMENTS: N/A

1. 1C-Budget Report Sewer Fund as of June 30, 2026

(425) 0.43
1,258,568 0.08
137,593 27.52
49,261 0.28
6,497 -
1,451,493 0.09
(232,066) (0.07)
374,319 0.09
(5,515) (0.00)
2,779,250 0.96
(508,934) (0.93)
2,407,053 0.16
3,858,547 (5.06)
1,771,154 1.42
560,282 37.35
2,331,435 1.84
106,982 0.60
3,137,880 1.00
25,000 1.00
3,269,861 0.98
5,601,296 2.68
(164,197) 0.39
9,780 3.91
(5,627,524) 1.00
(5,781,941) 0.95
26,192 0.22
114,915 0.14
3,208,143 0.34
8,500 1.00
3,357,750 0.33
(2,424,191) (0.58)
My Budget Report
City of Hollister Group Summary
Variance
Favorable
(Unfavorable)
Original
Total Budget
Current
Total Budget
Fiscal
Activity
Percent
Remaining Category
For Fiscal: 2025-2026 Period Ending: 06/30/2026
Fund: 660 - SEWER ENTRPRISE FUND
Revenue
420 - LICENSES & PERMITS 1,000 1,000 575
440 - CHARGES FOR SERVICES 15,651,000 15,651,000 16,909,568 450 - USES OF ASSETS 5,000 5,000 142,593
460 - FINES & FORFEITURES 175,000 175,000 224,261 490 - OTHER - - 6,497
Revenue Total:15,832,000 15,832,000 17,283,493 Expense
701 - PERSONNEL 3,154,945 3,154,945 3,387,011 735 - SERVICES & SUPPLIES 3,941,901 3,941,901 3,567,582 740 - CONTRACTUAL 4,535,400 4,535,400 4,540,915 750 - CAPITAL 2,886,600 2,886,600 107,350 764 - OTHER EXPENSES 550,000 550,000 1,058,934 Expense Total:15,068,846 15,068,846 12,661,793 Fund: 660 - SEWER ENTRPRISE FUND Surplus (Deficit):763,154 763,154 4,621,701 Fund: 661 - SEWER EXPANSION ENTPRS
Revenue
440 - CHARGES FOR SERVICES 1,250,000 1,250,000 3,021,154 450 - USES OF ASSETS 15,000 15,000 575,282 Revenue Total:1,265,000 1,265,000 3,596,435 Expense
740 - CONTRACTUAL 177,500 177,500 70,518 750 - CAPITAL 3,150,000 3,150,000 12,120 764 - OTHER EXPENSES 25,000 25,000 - Expense Total:3,352,500 3,352,500 82,639 Fund: 661 - SEWER EXPANSION ENTPRS Surplus (Deficit):(2,087,500) (2,087,500) 3,513,796 Fund: 662 - STORM DRAIN
Revenue
440 - CHARGES FOR SERVICES 425,000 425,000 260,803 450 - USES OF ASSETS 2,500 2,500 12,280
490 - OTHER 5,627,540 5,627,540 16
Revenue Total:6,055,040 6,055,040 273,099 Expense
735 - SERVICES & SUPPLIES 121,815 121,815 95,623 740 - CONTRACTUAL 802,500 802,500 687,585 750 - CAPITAL 9,327,540 9,327,540 6,119,397 764 - OTHER EXPENSES 8,500 8,500 -
Expense Total:10,260,355 10,260,355 6,902,605 Fund: 662 - STORM DRAIN Surplus (Deficit):(4,205,315) (4,205,315) (6,629,506)

Fund Balance-Cash Available (Deficit) unaudited $ 46,424,867 Item: 1C

My Budget Report
City of Hollister Group Summary
Variance
Favorable
(Unfavorable)
Original
Total Budget
Current
Total Budget
Fiscal
Activity
Percent
Remaining Category
For Fiscal: 2025-2026 Period Ending: 06/30/2026
(818,492) 0.66
(818,492) 0.66
(32,767) (0.07)
(32,767) (0.07)
(851,259) 1.12
6,184,394 1.30
(4,031,000)
43,807,767
3,858,547
5,601,296
(2,424,191)
(851,259)
6,184,394
Fund: 665 - SEWER IND. ENTERPRISE
Revenue
490 - OTHER 1,234,500 1,234,500 416,008 Fund: 620-621 - WATER FUND Surplus (Deficit) Available after reserves of 20%:

Revenue Total:1,234,500 1,234,500 416,008 Expense
735 - SERVICES & SUPPLIES 475,333 475,333 508,100 Expense Total:475,333 475,333 508,100 Fund: 665 - SEWER IND. ENTERPRISE Surplus (Deficit):759,167 759,167 (92,092) Fund: SEWER - Current Year Activity Surplus (Deficit):(4,770,494) (4,770,494) 1,413,900 3,513,796
662 - STORM DRAIN (4,205,315) (4,205,315) (6,629,506) For Fiscal: 2025-2026 Period Ending: 06/30/2026
Fund Summary
Variance
Favorable
(Unfavorable)
Original
Total Budget
Current
Total Budget
Fiscal
Activity Fund
8/24/2026 11:30:00 AM Page 2 of 2
Fund: SEWER FUND Less Reserves of 20%:
665 - SEWER IND. ENTERPRISE 759,167 759,167 (92,092) Report Surplus (Deficit):(4,770,494) (4,770,494) 1,413,900 660 - SEWER ENTRPRISE FUND 763,154 763,154 4,621,701 661 - SEWER EXPANSION ENTPR (2,087,500) (2,087,500)

STAFF REPORT

HOLLISTER CITY COUNCIL
MEETING DATE: September 8, 2026
REPORT # Finance-2026-34

AGENDA ITEM: JUNE 30, 2026 BUDGET TO ACTUAL FINANCIAL REPORTING

FOR THE WATER FUND

DEPARTMENT: Finance Department
DEPARTMENT HEAD: Jessica O'Connell, Finance Director

COUNCIL NEXT STEPS: Receive the report and discuss long-term financial stabilization strategies.

DISCUSSION:

The Water Enterprise Fund (Fund 620) and Water Expansion Fund (Fund 621) show significant fiscal challenges for the period ending June 30, 2026. Total Water Enterprise starts off with a fund balance cash deficit of $1,754,267, revenues reached $8,089,536, while expenses totaled $10,912,261, resulting in a current-year deficit of $2,822,725.

The structural historical deficit is $1,754,267. The sum of the historical deficit with last fiscal year’s deficit is $4,044,668.

The Water Expansion Fund experienced a modest surplus of $532,324; however, combined Water Funds still reflect a substantial negative position, with a total current-year deficit of $2,290,401. These results highlight the ongoing structural imbalance within the Water Funds and underscore the need for corrective action to restore financial stability, rebuild reserves, and ensure the long-term reliability of the City’s water system.

FISCAL IMPACT:

The Water Funds continue to face structural challenges, operating expenses particularly personnel and contractual costs continue to exceed revenues. Financial strain is evident through recurring operating deficits, increasing service demands, and insufficient reserves to absorb ongoing shortfalls.

To stabilize the Water Funds, the City should consider a multi-step approach that may include rate adjustments, targeted cost-control measures, workforce optimization, enhanced long-term financial modeling, and prioritizing essential capital investments.

Together, these actions will help restore fund balance, rebuild reserves, and support the long-term sustainability of water operations.

PREVIOUS COUNCIL OR COMMISSION ACTION: N/A

CEQA: N/A

ATTACHMENTS:

1. 1B-Budget Report Water Fund as of June 30, 2026

(1,000) 1.00
702,253 0.10
43,818 0.37
8,465 -
753,536 0.10
(465,583) (0.16)
21,059 0.01
277,421 0.05
28,859 0.60
(9,967) (0.03)
(148,211) (0.01)
605,325 0.18
298,669 2.13
89,849 17.97
388,519 2.68
21,805 0.95
630,000 1.00
2,800 1.00
654,605 1.00
1,043,124 2.04
(2,290,401)
(2,182,691)
(6,227,360)
605,325
1,043,124
1,648,449
For Fiscal: 2025-2026 Period Ending: 06/30/2026
Fund Balance-Cash Available (Deficit) unaudited $ (1,754,267) Fund: Water fund Current Year Activity Surplus (Deficit):
620 - WATER ENTERPRISE FUND (3,428,050) (3,428,050) (2,822,725) 621 - WATER EXPANSION ENT. F (510,800) (510,800) 532,324 Water Funds current year activitySurplus (Deficit):(3,938,850) (3,938,850) (2,290,401) 8/24/2026 10:16:41 AM
Fund Summary
Variance
Favorable
(Unfavorable)
Original
Total Budget
Current
Total Budget
Fiscal
Activity Fund
Fund: 621 - WATER EXPANSION ENT. FUND Surplus (Deficit):(510,800) (510,800) 532,324 Fund: 620-621 - WATER FUND Surplus (Deficit) Available after reserves of 20%:

Fund: 620-621 - WATER FUND Less Reserves of 20%:
750 - CAPITAL 630,000 630,000 - 764 - OTHER EXPENSES 2,800 2,800 -
Expense Total:655,800 655,800 1,195 Revenue Total:145,000 145,000 533,519 Expense
740 - CONTRACTUAL 23,000 23,000 1,195 Fund: 621 - WATER EXPANSION ENT. FUND
Revenue
440 - CHARGES FOR SERVICES 140,000 140,000 438,669 450 - USES OF ASSETS 5,000 5,000 94,849
Expense Total:10,764,050 10,764,050 10,912,261 Fund: 620 - WATER ENTERPRISE FUND Surplus (Deficit):(3,428,050) (3,428,050) (2,822,725) 740 - CONTRACTUAL 5,738,608 5,738,608 5,461,187 750 - CAPITAL 48,300 48,300 19,441 764 - OTHER EXPENSES 350,000 350,000 359,967 Expense
701 - PERSONNEL 2,952,070 2,952,070 3,417,653 735 - SERVICES & SUPPLIES 1,675,072 1,675,072 1,654,013 460 - FINES & FORFEITURES 120,000 120,000 163,818 490 - OTHER - - 8,465
Revenue Total:7,336,000 7,336,000 8,089,536 Fund: 620 - WATER ENTERPRISE FUND
Revenue
410 - FRANCHISES 1,000 1,000 -
440 - CHARGES FOR SERVICES 7,215,000 7,215,000 7,917,253 My Budget Report
City of Hollister Group Summary
Variance
Favorable
(Unfavorable)
Original
Total Budget
Current
Total Budget
Fiscal
Activity
Percent
Remaining Category
For Fiscal: 2025-2026 Period Ending: 06/30/2026
Item: 1B

STAFF REPORT

HOLLISTER CITY COUNCIL
MEETING DATE: September 9, 2026
REPORT # City Manager-2026-40

AGENDA ITEM: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

HOLLISTER AUTHORIZING THE CITY MANAGER TO EXECUTE A PROFESSIONAL

SERVICES AGREEMENT WITH HANSON BRIDGETT LLP FOR CITY

ATTORNEY/LEGAL SERVICES

DEPARTMENT: Human Resources
DEPARTMENT HEAD: Noel Mink, Human Resources, Risk, and Technology Director

COUNCIL NEXT STEPS: Adopt a Resolution authorizing the City Manager to execute a Professional Service Agreement with Hanson Bridgett LLP for City Attorney/Legal Services

DISCUSSION: Staff is recommending that the City Council authorize the City Manager to enter into a Professional Services Agreement with Hanson Bridgett LLP for City Attorney/Legal Services.

FISCAL IMPACT: Monthly Retainer of $28,000

PREVIOUS COUNCIL OR COMMISSION ACTION: N/A

CEQA: N/A

ATTACHMENTS:

1. Engagement Letter

27141576.1
Hanson Bridgett LLP
425 Market Street, 26th Floor, San Francisco, CA 94105
DAYNA D. LOUIE

SENIOR ASSOCIATE
DIRECT DIAL (415) 995-6435
E-MAIL [email protected]
September 8, 2026

City of Hollister
Attn: Roxanne Stephens, Mayor,
and City Councilmembers
375 5th Street
Hollister, CA 95023

Re: Engagement Letter & Fee Agreement

Dear Roxanne Stephens and City Councilmembers:

Thank you for the opportunity to represent the City of Hollister. This letter will confirm your engagement of Hanson Bridgett LLP to provide City Attorney Services.

Dayna Louie will be the attorney serving as City Attorney, with Julie Sherman, Nicole Witt, and Gilbert Tsai serving on the Deputy City Attorney team. Our monthly retainer rate will be a flat fee of $28,000 per month, which includes 65 hours of legal services. For work performed outside of the retainer, we are happy to offer the City of Hollister a blended rate of $475 for all attorneys.

When appropriate, we will use other attorneys, paralegals, and legal research assistants to handle work commensurate with their experience and expertise. Our rates will increase annually based on CPI-U with a minimum of 3% and a maximum of 5%. Dayna Louie will review your invoices for accuracy and maintain responsibility for the attorney-client relationship.

Our invoices contain a detailed narrative of the services rendered, together with the name of the attorney or paralegal involved, the time spent, and the amount charged. We will prepare the invoices on a matter-by-matter basis, where possible. We recommend that you treat our invoices as confidential documents and safeguard them appropriately.

Please refer to the attached Billing and Policy Summary for additional details regarding our representation, including an agreement to arbitrate disputes. Any expansion of the scope of our representation, or our agreement to handle additional matters for the City of Hollister, must be documented in a separate writing and will be governed by the terms of this letter agreement, unless specified otherwise. The effective date of this letter agreement is the date on which our services commenced; the date of this letter on page 1 is for convenience of reference only. We encourage the City of Hollister to consult with other counsel or advisors of its choice regarding the terms of our representation and, by agreeing to the terms of this letter agreement, you acknowledge that you have had the opportunity to do so.

We realize there are many qualified firms to choose from and are pleased you have selected our firm to assist you with your matter. We care deeply about our clients and our goal since the firm's founding in 1958 has been to provide exceptional client service. We welcome the City of Hollister as a valued client and look forward to assisting in the achievement of your objectives.

You can obtain more information about my background and our firm’s services from our website, www.hansonbridgett.com .

City of Hollister
September 8, 2026

27141576.1

Sincerely,

Dayna D. Louie
Senior Associate

Julie Sherman
Partner

City of Hollister
September 8, 2026

27141576.1
I have read and understand this Engagement Letter/Fee Agreement and the attached Billing and Policy Summary. I hereby confirm the engagement of Hanson Bridgett LLP to represent the City of Hollister in accordance with its terms.

City of Hollister

_____________________________________
By: Roxanne Stephens
Title: Mayor
Date: _________________________________

To facilitate your acceptance of the foregoing, you may simply reply to this e-mail message with "approved by the City of Hollister" and your name. We will consider your reply message to constitute your acceptance and agreement with the terms of this letter.

Billing and Policy Summary

1. Billing Practices. We have learned from experience that the attorney-client relationship works best when clients receive a full explanation at the outset about fees and payment terms.

California law requires written fee agreements in many cases, and we have found that our clients prefer to have them even when not legally required. This “Billing and Policy Summary” sets forth the principles underlying our fees and other charges. Please review it and let me know if you have any questions about our billing policies. In addition, you should direct any future questions about our billing practices or any particular invoices to me.

2. Fees. Except as otherwise agreed with a client, we bill for our services on an hourly basis. We account for our time in tenth-of-an-hour increments, and calculate fees by applying hourly rates assigned to attorneys and other staff to the time spent on a matter. On occasion, we may utilize contract employees to assist in providing legal or paralegal services, working under our direct supervision. In such cases the client is billed at an appropriate hourly rate commensurate with that of our professional staff with equal experience and expertise. All billing rates are reviewed annually and may be adjusted periodically.

3. Other Charges. Depending on the matter, we may have to use various in-office support systems and outside services. Therefore, you may incur and be billed for costs in addition to professional fees, subject only to written policies regarding the billing of disbursements that a client may provide to us in advance of the engagement. Usually we bill such charges to a client’s account at the time they are incurred. Examples include photocopying, overnight delivery, messenger services, computer research, travel expenses, court filings, court reporting and data storage. We reserve the right to make periodic adjustments to these charges. Our e- discovery platform operates on a usage-based pricing model for all features and an unlimited number of users. We apply a per-gigabyte (GB) rate based on the volume of data actively hosted within the platform. In some matters, we may retain outside vendors, such as experts, consultants or other third-party vendors, to assist us in our representation of you. We may require you to pay the invoices of any such outside vendors directly, or we may require you to pay us an additional retainer that we will hold in our client trust account and use to pay any third-party vendor expenses that we incur on your behalf. We may periodically require you to replenish this sum to ensure sufficient funds are available for ongoing costs. At the conclusion of our representation, we will deduct any outstanding vendor expenses incurred on your behalf from the vendor expenses retainer and refund the remaining balance to you.

4. Fee Estimates. From time to time, we may be asked to provide estimates of anticipated fees. Although we will make every effort to do so in a manner appropriate to the circumstances, these estimates may be subject to uncertainties beyond our control. Such estimates should not be viewed as a maximum or minimum fee quotation, unless we expressly confirm so in writing.

5. Billing Procedures. Ordinarily, we will bill clients on a monthly basis. Each invoice will separately state the amount of fees and costs. Unless otherwise specified, each represents fees and disbursements charged to the client through the end of the preceding month. The full amount of each invoice is due upon receipt by the client, irrespective of any eventual reimbursement of all or a portion of your fees and costs by a third party. Although we seek to include all fees and charges for a billing period, certain time and cost items from a billing period may not appear in the invoice for that period. Instead, they may be included in a later invoice.

Matters such as probate, bankruptcy, and trust services and certain financial transactions may involve billing at specified times other than monthly, as mutually agreed upon by the client and the firm, or as required by the court.

6. Payment Terms. Payment is due upon presentation of the invoice, irrespective of any eventual reimbursement of all or a portion of your fees and costs by a third party. Invoices that remain unpaid after thirty (30) days from the invoice date are subject to a late payment charge of ten percent (10%) per year. Payments that are made “on account” and not identified with a specific invoice will be credited to outstanding invoices chronologically, first to costs and then to fees. Our invoices include instructions for paying our fees and charges. Please contact us via telephone to verify wire instructions before wiring funds to us. Our payment options, including our wire instructions, will not change unless you receive a formal notification from the firm.

7. Litigation Retainer. In the event the matter we are handling for you goes to trial, arbitration or another type of significant hearing, we may require you to provide to us an additional advance payment retainer, which we will deposit in our client trust account maintained in accordance with State Bar rules. We will continue to issue an invoice to you for fees and expenses incurred in the previous month and deduct that sum from the amount held in the trust account. You agree to replenish the retainer amount within thirty (30) days of your receipt of our monthly billing statement. At the conclusion of our representation of you, we will apply the retainer held in our client trust account to your final bill. You will be responsible for any remaining amount due over and above the retainer. If no amount remains due after the retainer funds have been applied to the final invoice, or if the amount of the retainer exceeds the final balance due, we will refund to you the balance.

8. Credit Report. By executing this engagement letter, you agree that we have the right to obtain a consumer report from a recognized credit reporting agency. Should we choose to obtain such a report, it would be for the purposes of extending credit to you or to review or collect a past due account.

9. Insurer’s Role. If you are insured for all or part of the costs of our representation, we will work with you to provide the insurer with the necessary information regarding the claim.

However, insurers frequently assert, rightly or wrongly, that they are not obligated to pay for all fees and costs or to pay them on a current basis. For this reason, our fees and costs will be billed to you and payment will be due from you on a current basis, irrespective of any eventual reimbursement of a portion of your fees and costs by your insurer.

10. Preservation of Electronic Information. If your engagement includes a litigation matter, it is possible that it will involve electronic discovery. Under California and federal law, the obligation to provide discovery of electronic information carries with it the obligation to preserve such information. Failure to preserve all electronic and paper information that is later determined to be of potential importance to pending or threatened litigation can result in a range of sanctions, including, in extreme cases, the sanction of an adverse judgment. This evidence may also turn out to be critical to your ability to prove facts that support your position in the case, or disprove facts that the opposing party offers. Many electronic document storage systems contain programs that automatically overwrite or delete data. It is therefore important that you take appropriate steps to ensure that all information and electronic data that may be relevant is not lost, deleted, or destroyed. We will conduct an assessment of your electronic information systems. The assessment will include an initial evaluation and an in-depth identification of sources of relevant information. In the meantime, we recommend that normal document disposition policies, or automatic purging of electronic records, be suspended as to the matters at issue in any pending or threatened litigation until the matter is concluded. Please contact me for our additional fee schedule for assistance with collecting and processing electronically stored information as needed in your matter.

11. Conflicts Review. We have performed a computerized check of potential conflicts of interest that might have prevented us from providing representation in this matter. Based on information provided by you, as well as the information available in our files, we are not aware of any conflicts of interest at this time. If you later learn of any additional parties with an interest in this matter, you should notify us immediately so that we can be certain that they create no problem with this representation. We will conduct a similar search with respect to each new matter you may refer to the firm.

12. Identity of Client. Our engagement is with the person or entity to whom this letter is addressed. Unless otherwise agreed to in writing, we do not represent any parent, subsidiary, affiliate, directors, officers, or other related person or entity as a client. We do not regard a representation adverse to a parent, subsidiary, affiliate, director, officer, or other related person or entity as being adverse to you.

13. Advance Waiver. Given the scope of our firm wide business and client representations, it is possible that during or after the time we represent you, some of our present or future clients will ask us to represent them in disputes or transactions with or involving you which are substantially unrelated to our representation of you. We understand that you have no objection to our representation of parties with interests adverse to you, and that you consent to such representations and waive any actual or potential conflict of interest as long as those other engagements are not substantially related to our services to you. Accordingly, you agree that (i) we can in the future represent existing or new clients in any matter, including litigation or other disputes, so long as the matter is not substantially related to our work for you, even if those other clients' interests are adverse to you in the other matter; (ii) we may obtain confidential information of interest to you in these other matters that we cannot share with you; and (iii) you waive any conflict of interest that might arise from any of these representations and will not seek to disqualify us in or assert a conflict of interest with respect to any of those representations.

We agree, however, that your consent to, and waiver of such representations shall not apply in any instance where, as a result of our representation of you, we have obtained proprietary or other confidential information of a non-public nature, that, if known to such other client, could be used in any such other matter by such client to your material disadvantage or potential material disadvantage.

Similarly, new lawyers frequently join our firm. These lawyers may have represented parties adverse to you while employed by other law firms or organizations. We assume, unless you notify us otherwise, and consistent with our ethical standards, that you have no objection to our continuing representation of you notwithstanding our lawyers' prior professional relationships, provided we timely implement an ethical screen consistent with our customary practices to prohibit those lawyers from participating in your matter and we provide you with written notice of our implementation of the ethical screen.

14. Cooperation. To perform our services effectively, we require the support of each client .

We will keep you informed of the status of your matter, and we will consult with you regarding our representation as appropriate. We will provide copies of significant correspondence and documents to you during the course of our representation. You can assist us by keeping us fully informed as to facts and developments relevant to our representation of you and to each matter assigned. It is essential that each client (as well as any employees or representatives) provide us with accurate and complete information, including written materials when requested, and that each client make its personnel available to the extent required. Failure to assist in this way may

affect our ability to represent a client adequately, and could result in our withdrawal as legal counsel.

15. No Warranty of Result. We cannot predict or represent that a particular result can be obtained within a specified time. We can make no promises or guarantees regarding the outcome of the matter or matters that are the subject of our services. We do not ordinarily undertake to keep clients informed about subsequent developments or changes in law once the matter in question has concluded. If you would like us to do so, please inform us in writing so that we can make the necessary arrangements to provide this service.

16. Return and Disposition of Files. After our services conclude, we will, upon your request, deliver to you the files that we created in providing representation to you, along with any funds or property of yours in our possession. If you do not request the files, we will retain them for a period of five years after the matter is closed. At the end of the five-year period, we will have no further obligation to retain the files.

17. Dispute Resolution. While we certainly do not anticipate a dispute between us, in the event we are unable to mutually resolve a dispute between us, we both agree that we will submit any such dispute, as soon as practicable, to final and binding arbitration in San Francisco, California, before a single neutral arbitrator who is a retired judge or justice. The arbitration will be administered by JAMS, Inc., which is a private mediation and arbitration tribunal, and conducted pursuant to JAMS’ Comprehensive Arbitration Rules and Procedures (the “JAMS Rules”); those rules are available online through JAMS, and we also would be pleased to provide you with a copy of the JAMS Rules upon request. If we cannot agree on an arbitrator within 15 calendar days after one of us initiates arbitration, then JAMS will select the arbitrator in accordance with the JAMS Rules. This agreement to arbitrate includes any and all disputes between us which arise out of or relate in any way to this Agreement, our relationship, the services performed by us, or the attorney fees and costs charged.

Before agreeing to arbitrate disputes as set forth above, you should consider how arbitration differs from having a dispute resolved in a court of law. For example, by agreeing to arbitrate any and all disputes between us, you will be giving up your legal right to have such disputes heard and determined by a judge or jury in a courtroom open to the public. Unlike public court proceedings, arbitration proceedings are conducted privately and the outcome in most instances remains confidential. You will be responsible, in part, to share the costs of the arbitration proceeding, including payments to the arbitrator. Discovery in arbitration may be more limited than permitted in a court of law, including limitations on the number of depositions, and more limited discovery of third parties. A judicial forum generally does not permit reasonable attorney fees to be imposed against a non-prevailing client in a non-frivolous malpractice action, whereas an arbitral forum may permit an award that imposes costs of the arbitration, expenses and reasonable attorney fees against the non-prevailing party. The right to appeal an arbitrator’s decision or have it reviewed is limited; in most instances, the arbitrator’s decision will be final and all parties will be bound by it, although there may be very limited circumstances under which the arbitrator’s decision can be appealed or reviewed. If an arbitration award is confirmed by a trial court, the resulting court judgment may thereafter be enforced in the same manner as a judgment in a civil action.

The arbitration will be governed by the provisions of the Federal Arbitration Act (9 U.S.C. 1 et seq.). California’s substantive law will govern the underlying disputes to be arbitrated. We both agree that the arbitrator, not any federal or state court judge, will have the exclusive jurisdiction to resolve any and all disputes regarding the arbitrator’s jurisdiction and the interpretation,

applicability, enforceability or formation of this binding agreement to arbitrate, including but not limited to determining which claims are subject to arbitration, or any contention that all or any part of this arbitration agreement is unenforceable, voidable or void.

If you have any questions about the significance of your decision to arbitrate, we encourage you to raise them with an attorney who is independent of this law firm before you sign this engagement agreement.

18. Mandatory Fee Arbitration. Notwithstanding Section 17 above, in any dispute subject to the jurisdiction of the State of California over attorney's fees, charges, costs or expenses, you have the right to elect arbitration pursuant to the fee arbitration procedures of the State Bar of California, as set forth in California Business and Professions Code Sections 6200-6206.

Arbitration pursuant to the State Bar procedures is non-binding unless the parties agree in writing, after the dispute has arisen, to be bound by the arbitration award. These procedures permit a court trial after arbitration, or a subsequent binding contractual arbitration if the parties have agreed to binding arbitration and either party rejects the award and requests a trial de novo within 30 days after the award is mailed to the parties. If, after receiving a notice of the client's right to arbitrate, you do not elect to proceed under the State Bar fee arbitration procedures, and file a request for fee arbitration within 30 days, any dispute over fees, charges, costs or expenses, any dispute, claim or controversy arising between us, will be resolved by binding arbitration as provided in Section 17 above.

19. Termination. Clients may terminate our legal services at any time effective upon delivery of written notice to the firm. Unless we specifically agree to do so, we will provide no further services and advance no further costs on the matter after we receive notice of termination. Our right to terminate services to a client is subject to certain Rules of Professional Conduct that (a) require us to take reasonable steps to avoid foreseeable prejudice to the client from our withdrawal, and (b) establish standards for mandatory and permissive withdrawal under certain circumstances. Failure by a client to pay our bills in full, and on a timely basis, can constitute adequate grounds for us to withdraw. If we are attorney of record in any proceeding at the time we receive a termination notice, you will be required to execute and return a Substitution of Attorney consent immediately upon receipt, regardless of who initiates the termination. Whether you terminate our legal services or we withdraw from the representation as allowed by the Rules of Professional Conduct, you agree to pay all fees and costs incurred for our work up to the date of our termination or withdrawal.

Unless you terminate our services or we withdraw as provided in the preceding paragraph, our representation of you will be deemed concluded when we have completed our agreed-upon services. In addition, and without limiting the preceding sentence, you agree that our attorney- client relationship with you will have been terminated if we have performed no work on your behalf for twelve consecutive months. Your obligation to pay our fees and charges will survive the conclusion of our representation.

20. Use of Technology. We use industry-standard encryption protocols to secure client data in transit and at rest. We also employ two-factor authentication and regularly update our systems to protect against potential security threats. During the course of our work together, we may exchange emails, documents, and other materials over the Internet using commercially available communication and collaboration tools or platforms. Hanson Bridgett uses certain preferred communication and collaboration tools and platforms, and we understand that clients may ask us to use other Internet-based tools or platforms (such as Dropbox, Box or Google Drive) to share documents and other materials with us. Notwithstanding our security protocols,

information sent or received over the Internet using any of these communication and collaboration tools or platforms may not be secure, and using them may place your confidences and privileges at risk. While we believe that the efficiencies involved in the use of these products or platforms outweigh the risk of accidental disclosure, we cannot guarantee the security or confidentiality of any such communication or collaboration products or platforms.

We may use artificial intelligence tools, including generative artificial intelligence (“GAI”), to assist attorneys in performing legal research, drafting, analysis and other tasks, with all outputs reviewed and approved by the firm’s attorneys. We will evaluate each GAI tool’s terms of service, privacy policy, and security features to ensure reasonable safeguards against unauthorized disclosure of information, and the GAI tools we use are accessible only to Hanson Bridgett lawyers and staff. We will not enter sensitive client information into any GAI tool that retains or trains on user data unless we have configured available settings, such as disabling data retention or model training, that we reasonably determine are sufficient to protect your information. We will limit disclosures to what is reasonably necessary for the intended task and will ensure that our use of GAI is consistent with your interests and our professional obligations.

You may instruct us in writing to restrict or prohibit the use of GAI in our work for you; however, you understand that such restrictions may reduce efficiency and require additional attorney or staff time, which may increase the total fees charged.

In some circumstances, you may consider using GAI technology or tools on tasks that are related to the legal services we are providing to you. You should be aware that your use of GAI technology or a GAI tool, including the prompts you enter into a GAI tool or the GAI -generated recording, transcription or summarization of video meetings with us, may not be shielded by the attorney-client privilege and may therefore be discoverable. We urge you to discuss with us your proposed or potential use of any GAI technology or tool in connection with our representation of you before you use such a GAI technology or tool.

21. Miscellaneous. From time to time, and consistent with our obligation to maintain your confidences, we may wish to reference our representation of you on our website, in attorney biographies, on matter lists, or in descriptions of our practice areas. We assume you have no objection to such use. We may send you emails with information about our firm, services, legal developments and upcoming events. If at any time you no longer wish to receive marketing communications from us, you may unsubscribe by clicking a link at the bottom of each marketing email which enables you to opt out of our mailing lists. Except as provided in Section 17, our agreement will be governed by California law.

22. Entire Agreement; Notice. This attached letter and this Billing and Policy Summary represent our entire agreement, which will be effective on the date of your signature. It supersedes all prior agreements, statements, or guarantees made before this time. Any notice from you amending, supplementing or superseding the terms of the attached let ter and this Billing and Policy Summary will be effective only if approved by our duly authorized representative, and our agreement is memorialized in a writing signed by both parties. To signify your agreement with the terms of this letter, please sign the original and retain it for your files.

Please sign a copy of the letter and return it to us for our files. You may also affix an electronic signature indicating your intent to sign this letter and return a copy to us electronically. If mailed, I am enclosing a pre-addressed envelope for your convenience. Of course, you have the right to seek the opinion of independent legal counsel or any other advisors, if you wish to do so, in order to determine whether each and every aspect of this agreement is in your best interests and is acceptable as drafted.