September 9, 2024 – Regular Meeting Agenda – 7:00 p.m.
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September 9, 2024 – City Council Regular Meeting – 7:00 p.m.
City Council Chamber
390 Towne Centre Drive
Lathrop, California
(209) 941-7200
www.ci.lathrop.ca.us
City Council
Sonny Dhaliwal, Mayor
Minnie Diallo, Vice Mayor
Paul Akinjo
Diane Lazard
Jennifer Torres-O’Callaghan
City Staff
Stephen Salvatore, City Manager
Salvador Navarrete, City Attorney
Stephen Sealy, Chief of Police
Michael King, Assistant City Manager
Thomas Hedegard, Deputy City Manager
Teresa Vargas, Government Services
Director / City Clerk
Brad Taylor, City Engineer
Tony Fernandes, Information Systems Director
Cari James, Finance Director
Juliana Burns, Human Resources Director
Rick Caguiat, Community Development
Director
Todd Sebastian, Parks and Recreation
Director
General Order of Business
1. Preliminary
• Call to Order
• Closed Session
• Roll Call
• Invocation
• Pledge of Allegiance
• Announcements by Mayor/City Mgr.
• Informational Items
• Declaration of Conflict of Interest
2. Presentations
3. Citizen’s Forum
4. Consent Calendar
5. Scheduled Items
• Public Hearings
• Appeals
• Referrals and Reports from
Commissions and Committees
• All Other Staff Reports and/or Action
Items
• Study Sessions
6. Council Communications
7. Adjournment
Order of Discussion
Generally, the order of discussion after introduction
of an item by the Mayor will include comments and
information by staff followed by City Council
questions and inquiries. The applicant, or their
authorized representative, or interested residents,
may then speak on the item; each speaker may only
speak once to each item. At the close of public
discussion, the item will be considered by the City
Council and action taken.
Consent Calendar
Items on the Consent Calendar are considered
routine by the City Council and will be enacted by one
motion and one vote. There will be no separate
discussion of these items unless a Councilmember or
interested resident so requests, in which case the
item will be removed from the Consent Calendar and
considered separately.
1 September 9, 2024 Lathrop City Council Regular Meeting Agenda Page 1
IMPORTANT NOTICE REGARDING THIS MEETING
This public meeting will be conducted in person; all members of the City Council will attend in person. Members of the public are welcomed in person. This meeting will also be available for public participation by teleconference via ZoomGov at the following link:
https://www.zoomgov.com/j/1613885243?pwd=qnGMIq3Hh01IfrS rNJsrVV7TP70s4m.1
During the meeting, those joining by ZoomGov, will be allowed to speak prior to the close of public comment on an item. If you are using this method, please “raise the hand” feature to inform the City Clerk (meeting host) you wish to speak on the matter.
Please ensure your computer speaker and microphone are fully functional.
For audio / calling in only, dial: +1 (669) 254-5252 or +1 (669) 216-1590 o To request to speak (same as the “raise hand” feature) press *9 / When the City Clerk calls your name, press *6 to unmute.
Meeting Webinar ID: 161 388 5243 / Passcode: 316394
If you are not able to attend the meeting in person or virtually - Public comment / questions will be accepted by email to City Clerk Teresa Vargas at [email protected] or by calling (209) 941-7230. Please reference the Agenda Item or Public Comment Matter, and the date of the City Council Meeting, in your written communication.
Questions or comments submitted by email must be submitted by 4:00 p.m., on the day of the meeting.
To address City Council in person, please submit a purple card to the City Clerk indicating name, address, and number of the item upon which a person wishes to speak.
Council Meetings are live-streamed (with Closed Captioning) on Comcast Cable Channel 97, and on the City Council Webpage: https://www.ci.lathrop.ca.us/citycouncil/page/live-stream Addressing the Council
Any person may speak once on any item under discussion by the City Council after receiving recognition by the Mayor. Purple speaker cards will be available prior to and during the meeting. To address City Council, a card must be submitted to the City Clerk indicating name, address and number of the item upon which a person wishes to speak. When addressing the City Council, please walk to the lectern located in front of the City Council. State your name and address. In order to ensure all persons have the opportunity to speak, a time limit will be set by the Mayor for each speaker (see instructions on speaker form). In the interest of time, each speaker may only speak once on each individual agenda item; please limit your comments to new material; do not repeat what a prior speaker has said. If you challenge the nature of a proposed action in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the City Council at, or prior to, the public hearing. 2 September 9, 2024 Lathrop City Council Regular Meeting Agenda Page 2 Citizen’s Forum
Any person desiring to speak on a matter, which is not scheduled on this agenda, may do so under the Citizen’s Forum section. Please submit your purple speaker card to the City Clerk prior to the commencement of Citizen’s Forum, or submit your request to speak via the “raise hand” feature in ZoomGov. Only those who have submitted speaker cards, or have expressed an interest to speak, prior to the conclusion of Citizen’s Forum will be called upon to speak.
Please be aware the California Government Code prohibits the City Council from taking any immediate action on an item, which does not appear on the agenda, unless the item meets stringent statutory requirements. The Mayor will limit the length of your presentation (see instructions on speaker form) and each speaker may only speak once on this agenda item.
Please note, the Council Chamber has limited occupancy due to social distancing.
To leave a voice message for all Councilmembers simultaneously, dial (209) 941-7230. To send an e-mail for Councilmembers simultaneously email: [email protected]. This City Council Agenda and meeting materials can be accessed by computer or any smart device at: https://www.ci.lathrop.ca.us/meetings
General Information
For reports citing supplemental documents relating to specific agenda items, these are available for review in the City Clerk’s Office. This agenda was posted at the following locations: City Hall, Community Center, Generations Center, Senior Center, and the LathropManteca Fire District “J" Street and Somerston Parkway Offices. The meetings of the Lathrop City Council are broadcast on Lathrop Comcast Cable Television Channel 97 and live streamed on the City’s website.
Assistance will be provided to those requiring accommodations for disabilities in compliance with the Americans with Disabilities Act of 1990. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility and/or accommodations to this meeting. [28 CFR 35.102-35.104 ADA Title II] Interested persons must request the accommodation at least 2 working days in advance of the meeting by contacting the City Clerk at (209) 941-7230. Information about the City or items scheduled on the Agenda may be referred to:
Teresa Vargas, MMC
Government Services Director / City Clerk
390 Towne Centre Drive
Lathrop, CA 95330
Telephone: (209) 941-7230
3 September 9, 2024 Lathrop City Council Regular Meeting Agenda Page 3
CITY OF LATHROP
CITY COUNCIL REGULAR MEETING
MONDAY, SEPTEMBER 9, 2024
7:00 P.M.
COUNCIL CHAMBER, CITY HALL
390 Towne Centre Drive
Lathrop, CA 95330
AGENDA
PLEASE NOTE: There will be a Closed Session commencing at 6:30 p.m. The Regular Meeting will reconvene at 7:00 p.m., or immediately following the Closed Session, whichever is later.
1. PRELIMINARY
1.1 CALL TO ORDER
1.2 CLOSED SESSION
1.2.1 CONFERENCE WITH REAL PROPERTY NEGOTIATIONS: Pursuant to Government Code Section: 54956.8
Address: APN 190-020-27, 700 Dos Reis Road, Lathrop, CA Agency Negotiator: Stephen J. Salvatore, City Manager
Negotiating Parties: Debbie Rock
Under Negotiation: Terms of Lease and Settlement Agreements
1.2.2 LIABILITY CLAIM - Pursuant to Government Code Section 54956.95
Claimant: Aspire General Insurance Company as Subrogee of Michael Ovando
Agency Claimed Against: City of Lathrop
RECONVENE
1.2.3 REPORT FROM CLOSED SESSION
1.3 ROLL CALL
1.4 INVOCATION
1.5 PLEDGE OF ALLEGIANCE
1.6 ANNOUNCEMENT(S) BY MAYOR / CITY MANAGER
1.7 INFORMATIONAL ITEM(S) - None
1.8 DECLARATION OF CONFLICT(S) OF INTEREST
4 September 9, 2024 Lathrop City Council Regular Meeting Agenda Page 4
2. PRESENTATIONS
2.1 CERTIFICATE OF RECOGNITION TO THE LATHROP SUNRISE ROTARY
FOR THEIR COMMUNITY VOLUNTEER WORK INSTALLING AMERICAN
FLAGS THROUGHOUT THE CITY OF LATHROP DURING THE HOLIDAYS
2.2 PROCLAMATION DECLARING SEPTEMBER 2024 AS FIRST RESPONDER
APPRECIATION MONTH
2.3 PROCLAMATION DECLARING HISPANIC HERITAGE MONTH FROM SEPTEMBER 15, 2024 – OCTOBER 15, 2024
2.4 INTRODUCTION OF NEW EMPLOYEES
Public Works
• Zachary Karver, Project Manager
• Leisser Mazariego, Project Manager
• Alberto Navarro, Building Inspector
• Rodolfo Rodriguez, Electrician Instrument Technician
Police Department
• Alejandra Maldonado, Police Officer
2.5 PRESENTATION REGARDING BROADBAND INFRASTRUCTURE MASTER PLAN PROJECT, CIP GG 24-24
3. CITIZEN’S FORUM
Any person desiring to speak on a matter, which is not scheduled on this agenda, may do so under Citizen’s Forum. Please submit a purple speaker card to the City Clerk prior to the commencement of Citizen’s Forum. Only those who have submitted speaker cards, or have expressed an interest to speak, prior to the conclusion of Citizen’s Forum will be called upon to speak. Please be aware the California Government Code prohibits the City Council from taking any immediate action on an item, which does not appear on the agenda, unless the item meets stringent statutory requirements. The City Council can, however, allow its members or staff to briefly (no more than five (5) minutes) respond to statements made, to ask questions for clarification, make a brief announcement or report on his or her own activities. (See California Government Code Section 54954.2(a)). Unless directed otherwise by a majority of the City Council, all questions asked and not answered at the meeting will be responded to in writing within 10 business days. ALL PUBLIC
COMMENTS MUST BE MADE IN COMPLIANCE WITH THE LATHROP CITY COUNCIL HANDBOOK OF RULES AND PROCEDURES!
5 September 9, 2024 Lathrop City Council Regular Meeting Agenda Page 5
4. CONSENT CALENDAR
Items on the Consent Calendar are considered routine by the City Council and will be enacted by one motion and one vote. There will be no separate discussion of these items unless the Mayor, Councilmember, or citizen so requests, in which event the item will be removed from the Consent Calendar and considered separately.
4.1 WAIVING OF READING OF ORDINANCES AND RESOLUTIONS
Waive the Reading in Full of Ordinances and Resolutions on Agenda and Adopt by Reading of Title Only, Unless Otherwise Requested by the Mayor or a Councilmember
4.2 APPROVAL OF MINUTES
Approve Minutes for the Regular City Council Meeting of June 10, 2024,
4.3 APPROVAL OF MINUTES
Approve Minutes for the Regular City Council Meeting of July 8, 2024,
4.4 APPROVAL OF MINUTES
Approve Minutes for the Regular City Council Meeting of August 12, 2024
4.5 APPROVAL OF MINUTES
Approve Minutes for the Special City Council Meeting of August 19, 2024
4.6 2024 CONFLICT OF INTEREST CODE BIENNIAL AMENDMENT
Adopt Resolution Adopting an Amended Conflict of Interest Code
4.7 APPROVE CONTRACT AMENDMENTS FOR THE CITY MANAGER, CITY
ATTORNEY & POLICE CHIEF
Adopt Resolution Approving Amendment Number Six to the City Manager Employment Agreement, Amendment Number Four to the City Attorney Employment Agreement, and Amendment Number One to the Police Chief Employment Agreement
4.8 TREASURER’S REPORT FOR JUNE 2024
Approve Quarterly Treasurer’s Report for June 2024
4.9 TABLE SPONSORSHIP AT THE 22ND ANNUAL MEMORIAL DINNER & FUNDRAISER TO COMMEMORATE SEPTEMBER 11, 2001
Ratify City Participation and Table Sponsorship at the 22nd Annual Memorial Dinner & Fundraiser by Jass Sangha and Lake Front Resort to Commemorate September 11, 2001 That Was Held on September 8, 2024 in Tracy, California
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4.10 APPROVE OF OUT OF STATE TRAVEL FOR TWO (2) LATHROP POLICE
DEPARTMENT STAFF TO DROP-OFF AND PICK-UP THE SWAT VEHICLE
FOR UPFITTING
Adopt Resolution Approving Out Of State Travel for two (2) Lathrop Police Department Staff to Drop-Off and Pick-Up the Lathrop Police Department’s SWAT Vehicle for Upfitting in Reno, Nevada
4.11 RATIFY THE PURCHASE OF (9) NINE VEHICLES WITH PHIL LONG FORD OF DENVER, LLC., FOR THE LATHROP POLICE DEPARTMENT
Adopt Resolution to Ratify the Purchase of (9) Nine Vehicles with Phil Long Ford of Denver, LLC. for the Lathrop Police Department
4.12 APPROVE EMERGENCY SERVICE CONTRACTS WITH NEXTGEN ALPHA
UPFITTING AND MANTECA COLLISION PROS FOR POLICE VEHICLE
UPFITTING AND PAINT SERVICES
Council to Consider the Following:
1. Adopt Resolution to Approve Emergency Service Contract with NextGen Alpha Upfitting for the Purchase and
Installation of Police Vehicle Equipment
2. Adopt Resolution to Approve Emergency Service Contract with Manteca Collision Pros for Autobody Paint and Decal Services for Police Vehicles
4.13 APPROVE AMENDMENT NO. 5 TO PROFESSIONAL SERVICES
AGREEMENT WITH WSP USA, INC. FOR THE MANTHEY ROAD BRIDGE REPLACEMENT PROJECT, CIP PS 12-04 AND APPROVE BUDGET
AMENDMENT
Adopt Resolution Approving Amendment No. 5 to Professional Services Agreement with WSP USA, Inc. for the Manthey Road Bridge Replacement Project, CIP PS 12-04 and Approve Budget Amendment
4.14 AUTHORIZE ACCEPTANCE OF THE SELECTIVE TRAFFIC ENFORCEMENT
PROGRAM (STEP) GRANT FUND AWARD FROM THE STATE OF
CALIFORNIA OFFICE OF THE TRAFFIC SAFETY (OTS)
Adopt Resolution Authorizing the Chief of Police to Accept the Selective Traffic Enforcement Program (STEP) Grant Fund Award of $81,500 from the State of California Office of Traffic Safety (OTS)
4.15 ACCEPT PUBLIC IMPROVEMENTS CONSTRUCTED BY GEORGE REED, INC. FOR THE CLASS II BIKEWAYS TO ACE STATION, CIP PS 22-18 Adopt Resolution to Accept Public Improvements Constructed by George Reed, Inc. for the Class II Bikeways to Ace Station, CIP PS 22-18, Authorizing the Filing of a Notice of Completion, Release of Contract Retention, and Release of Performance and Payment Bonds 7 September 9, 2024 Lathrop City Council Regular Meeting Agenda Page 7
4.16 ACCEPT PUBLIC IMPROVEMENTS CONSTRUCTED BY DIRT DYNASTY, INC. FOR THE SIDEWALK INFILL AT "J" STREET AND 5TH STREET INTERSECTION, CIP PS 23-09
Adopt Resolution Accepting Public Improvements Constructed by Dirt Dynasty, Inc. for Sidewalk Infill at "J" Street and 5th Street Intersection, CIP PS 23-09, Authorizing the Filing of a Notice of Completion, the Release of Contract Retention, and the Release of Performance and Payment Bonds
4.17 AWARD CONSTRUCTION CONTRACT TO AUTOMATIC DOOR SYSTEMS (ADS) INC. FOR THE LATHROP POLICE DEPARTMENT ADA
IMPROVEMENTS, CIP GG 23-14 AND APPROVE BUDGET AMENDMENT Adopt Resolution Awarding Construction Contract to Automatic Door Systems (ADS) Inc. for the Lathrop Police Department ADA Improvements, CIP GG 23-14 and Approve Budget Amendment
4.18 AWARD CONSTRUCTION CONTRACT TO BOCKMON & WOODY, INC. FOR CONSTRUCTION OF CIP GG 23-19 SOUTH LATHROP SURVEILLANCE
SYSTEM AND APPROVE BUDGET AMENDMENT
Adopt Resolution to Award a Construction Contract to Bockmon & Woody, Inc. for Construction of CIP GG 23-19 South Lathrop Surveillance System and Approve Budget Amendment
4.19 AWARD CONSTRUCTION CONTRACT TO FRONTLINE GENERAL
ENGINEERING CONSTRUCTION, INC. FOR CONSTRUCTION OF LATHROP GATEWAY ARCHES, CIP GG 24-23 AND APPROVE BUDGET AMENDMENT Adopt Resolution Awarding a Construction Contract to Frontline General Engineering Construction, Inc. for Construction of Lathrop Gateway Arches, CIP GG 24-23 and Approve Budget Amendment
4.20 AWARD CONSTRUCTION CONTRACT TO MG & JC CONCRETE, INC. FOR
CONSTRUCTION OF TOWNE CENTRE DRIVE RAISED CROSSWALK
PROJECT, CIP PS 24-07
Adopt Resolution Awarding a Construction Contract to MG & JC Concrete, Inc. for the Construction of Towne Centre Drive Raised Crosswalk, CIP PS 24-07
4.21 CREATE MOSSDALE LANDSCAPE REHABILITATION, CIP GG 25-06,
APPROVE BUDGET AMENDMENT AND APPROVE CONSTRUCTION
CONTRACTS WITH MG & JC CONCRETE INC. AND JOHN D. WAIT
MASONRY, INC.
Adopt Resolution to Create Mossdale Landscape Rehabilitation, CIP GG 25-06, Approve Budget Amendment and Approve Construction Contracts
8 September 9, 2024 Lathrop City Council Regular Meeting Agenda Page 8
4.22 CREATE CIP PS 25-07 FOR JONQUIL DRIVE AND POPPY COURT
PAVEMENT REHABILITATION, AWARD CONSTRUCTION CONTRACT TO
DSS COMPANY DBA KNIFE RIVER CONSTRUCTION, AND APPROVE
BUDGET AMENDMENT
Adopt Resolution to Create Capital Improvement Project PS 25-07 for Jonquil Drive and Poppy Court Pavement Rehabilitation, Award a Construction Contract to DSS Company dba Knife River Construction, and Approve Budget Amendment
RIVER ISLANDS DEVELOPMENT CONSENT ITEM(S)
4.23 APPROVE PARCEL MAP, CFD ANNEXATION, AND OFFSITE
IMPROVEMENT AGREEMENT WITH CALIFIA, LLC FOR 3 LOTS WITHIN
WEST VILLAGE DISTRICT OF RIVER ISLANDS
Adopt Resolution Approving Parcel Map 24-05 within the West Village District, Totaling 3 Lots, Annexation into CFD 2023-1, and an Offsite Improvement Agreement with Califia, LLC
4.24 APPROVE QUITCLAIM DEEDS TO TRANSFER OPEN SPACE PARCELS TO
RIVER ISLANDS PUBLIC FINANCING AUTHORITY
Adopt Resolution Approving Quitclaim Deeds to Transfer Open Space Parcels to River Islands Public Financing Authority
5. SCHEDULED ITEMS
5.1 FISCAL YEAR (FY) 2023-24 YEAR-END BUDGET REPORT AND RELATED AMENDMENTS AND AMENDMENTS TO THE FISCAL YEAR 2024-25
BUDGET
Discussion and Adoption of Resolution Approving the FY 2023-24 YearEnd Report, Related Budget Amendments, and Amending the FY 2024- 25 Budget
6. COUNCIL COMMUNICATIONS
6.1 MAYOR DHALIWAL REFERRAL - Update the Delegate/Alternate to the Lathrop Manteca Fire Department and City of Lathrop 2x2 Committee Members
6.2 VICE MAYOR DIALLO REFERRAL – Discussion on Late Fees for Utility Bills, and Discounts for Veterans
6.3 VICE MAYOR DIALLO REFERRAL – Discussion on the City’s Social Media Policy
6.4 STAFF REFERRAL – Discussion to Consider Renovation of Mossdale Community Park
9 September 9, 2024 Lathrop City Council Regular Meeting Agenda Page 9
6.5 MAYOR & COUNCILMEMBER COMMITTEE REPORT(S)
• Ava Community Energy (Diallo/Torres-O’Callaghan)
• Central Valley Executive Committee/LOCC (Akinjo/Diallo) • Council of Governments (Dhaliwal/Diallo)
• Integrated Waste Management Solid Waste Division (Akinjo/Torres-O’Callaghan) • Local Agency Formation Commission (LAFCo) (Diallo)
• Reclamation District 17 Joint Powers Authority (Salvatore) • San Joaquin Partnership Board of Directors (Salvatore) • San Joaquin County Commission on Aging (Vacancy)
• San Joaquin Valley Air Pollution Control District (Akinjo/Dhaliwal) • Water Advisory Board (Torres-O’Callaghan/Lazard)
• Tri Valley-San Joaquin Valley Regional Rail Authority (Akinjo) • San Joaquin Area Flood Control Agency (Akinjo/Lazard/Torres-O’Callaghan)
6.6 MAYOR & COUNCILMEMBER COMMENT(S)
7. ADJOURNMENT
/Teresa Vargas/
Teresa Vargas, MMC
Government Services Director
City Clerk
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24 ITEM 4. 3
CITY OF LATHROP
CITY COUNCIL REGULAR MEETING
MONDAY, JULY 8, 2024
7: 00 P. M.
COUNCIL CHAMBER, CITY HALL
390 Towne Centre Drive
Lathrop, CA 95330
MINUTES
PLEASE NOTE: There was no Closed Session. The Regular Meeting commenced at 7: 04 a. m.
1. PRELIMINARY
1. CALL TO ORDER - Councilmember Akinjo called the meeting to order at 7: 04 p. m.
1. 2 ROLL CALL Present: Councilmembers: Akinjo, Lazard and Torres -O' Callaghan.
Absent: Mayor Dhaliwal and Vice Mayor Diallo
1. 3 INVOCATION - Roger Slate, Outreach Minister with Grace Community Church, provided the invocation.
1. 4 PLEDGE OF ALLEGIANCE - Outreach Minister Roger Slate led the pledge of allegiance.
1. 5 ANNOUNCEMENT( S) BY MAYOR / CITY MANAGER
Government Services Director and City Clerk Teresa Vargas announced the beginning of the Nomination Period for the 2024 Municipal Election, commencing Monday, July 15, 2024, at 8 a. m. through Friday, August 9, 2024, at 5 p. m. Candidates are encouraged to call the City Clerk' s Department at ( 209) 94- 7230 to make an appointment to pick up nomination papers during this time.
Chief of Police Stephen Sealy announced the National Night Out community event, scheduled for Tuesday, August 6, 2024, from 6 p. m. to 8 p. m.
1. 6 INFORMATIONAL ITEM( S) - None.
1. 7 DECLARATION OF CONFLICT( S) OF INTEREST - None.
2. PRESENTATIONS
July 8, 2024 Lathrop City Council Regular Meeting Minutes Page 1 25 2. 1 PROCLAMATION DECLARING JULY AS PARKS AND RECREATION MONTH Councilmember Akinjo presented a proclamation declaring July 2024 as Parks and Recreation Month to members of the Parks and Recreation Department.
2. INTRODUCTION OF NEW EMPLOYEES
Chief of Police Stephen Sealy introduced Police Lieutenant Krystal Pronske. Lieutenant Pronske expressed appreciation for her employment with the City of Lathrop.
2. 3 PRESENTATION REGARDING THE AMERICANS WITH DISABILITIES ACT
ADA) TRANSITIONAL PLAN UPDATE
City Engineer Brad Taylor introduced City Accessibility Consultant Lena Roper with MIG Consultants. Ms. Roper provided the presentation, which included, but not limited to, ADA Title II requirements for public entities, public engagement, public programs and policies, evaluation of city facilities, project prioritization and plan structure.
2. 4 PRESENTATION REGARDING THE BROADBAND INFRASTRUCTURE MASTER PLAN PROJECT, CIP GG 24-4
City Council consensus approved staff' request to move presentation for Item 2. 4 to the Regular Meeting of September 9, 2024.
3. CITIZEN' SFORUM
Gavin Cline ( in person speaker), Legislative Representative for Congress Member John Duarte, provided an overview of various legislative updates and activities for California' s 13th District. Lawrence Abbott made several comments related to the beautification of the city' sstorm drain ponds, weed abatement maintenance, planting of additional trees, and requested consideration of access to perform volunteer weed abatement and beautification services on city owned storm drain ponds.
4. CONSENT CALENDAR
On a motion by Councilmember Torres -O' Callaghan, seconded by Councilmember Lazard, the City Council approved the Consent Calendar, by the following roll call vote, unless otherwise indicated:
Ayes: Lazard, Torres -O' Callaghan and Akinjo
Noes: None
Absent: Dhaliwal and Diallo
Abstain: None
July 8, 2024 Lathrop City Council Regular Meeting Minutes Page 2 26 4. 1 WAIVING OF READING OF ORDINANCES AND RESOLUTIONS Waived the reading in full of ordinances and resolutions on agenda and adopt by reading of title only, unless otherwise requested by the Mayor or a Councilmember.
4. 2 APPROVAL OF MINUTES
Approved Minutes for the Regular City Council Meeting of May 13, 2024, and the Special Meeting of June 3, 2024.
4. 3 APPROVE ESTABLISHING THE CITY OF LATHROP POET LAUREATE
PROGRAM
Adopted Resolution 24- 5579 establishing the City of Lathrop Poet Laureate Program and authorizing the City Manager to execute a Grant Funding Agreement with the Library & Literacy Foundation for San Joaquin County.
4. APPROVE OUT OF STATE TRAVEL AUTHORIZING THE PARKS AND RECREATION DIRECTOR TO ATTEND TWO ( 2) OUT OF STATE MEETINGS
IN HIS ROLE AS A REGENT OF THE BOARD OF THE NATIONAL
RECREATION AND PARK ASSOCIATION, REVENUE DEVELOPMENT AND
MANAGEMENT SCHOOL
Adopted Resolution 24- 5580 authorizing out of state travel for the Parks and Recreation Director to attend the National Recreation and Park Association, Revenue Development and Management School Midyear Meeting August 5-6, 2024, in Denver Colorado and March 10- 14, 2025, in Wheeling, West Virginia.
4. 5 APPROVE OUT OF STATE TRAVEL FOR COUNCIL MEMBERS TO ATTEND EXPERIENCIA PUERTO RICO 2024", AS MEMBERS OF THE NATIONAL
LEAGUE OF CITIES SMALL CITIES COUNCIL
Adopted Resolution 24- 5581 authorizing out of state travel for two 2) Council Members to attend " Experiencia Puerto Rico 2024" in San Juan, Puerto Rico, August 26-8, 2024, as members of the National League of Cities Small Cities Council.
4. 6 APPROVE OUT OF STATE TRAVEL FOR COUNCIL MEMBERS TO ATTEND THE 2024 NATIONAL LEAGUE OF CITIES CITY SUMMIT
Adopted Resolution 24- 5582 authorizing out of state travel for four 4) Council Members to attend the 2024 National League of Cities City Summit in Tampa Bay, Florida, November 13 - 16, 2024.
July 8, 2024 Lathrop City Council Regular Meeting Minutes Page 3 27 4. 7 APPROVE THE PURCHASE OF FOUR ( 4) VEHICLES FROM PHIL LONG FORD OF DENVER AND TWO ( 2) VEHICLES FROM AMERICAN
CHEVROLET OF MODESTO
Adopted Resolution 24- 5583 approving the purchase of four ( 4) vehicles from Phil Long Ford of Denver, and Resolution 24- 5584 approving the purchase of two (2) vehicles from American Chevrolet of Modesto.
4. 8 APPROVE ANNUAL INDUSTRIAL SOLID WASTE LICENSE FOR TESLA, INC., FOR FISCAL YEAR ( FY) 2024-5
Adopted Resolution 24- 5585 approving Annual Industrial Solid Waste License for Tesla, Inc., for FY 2024-5.
4. 9 APPROVE FINAL MAP AND SUBDIVISION IMPROVEMENT AGREEMENT FOR 66 LOTS IN TRACT 3225 WITHIN THE MOSSDALE LANDING AREA Adopted Resolution 24- 5586 approving Final Map for Tract 3225 within the Mossdale Landing Area, totaling 66 single- family lots and Subdivision Improvement Agreement with K. Hovnanian Homes Northern California, Inc.
4. 10 ACCEPT PUBLIC IMPROVEMENTS WITH ASSOCIATED CONDITIONS FOR EP NO. 2023- 102, LOCATED ON GOLDEN VALLEY PARKWAY BETWEEN
RIVER ISLANDS PARKWAY AND SPARTAN WAY, FROM LATHROP LAND
ACQUISITION, LLC, APPROVE BUDGET AMENDMENT, RESCIND
PREVIOUS APPROVAL OF CHANGE ORDER, AND APPROVE CHANGE
ORDER NO. 33 FOR LANDSCAPE MAINTENANCE SERVICES WITH SILVA
LANDSCAPE
Adopted Resolution 24- 5587 accepting public improvements with associated conditions for Encroachment Permit No. 2023- 102, located on Golden Valley Parkway, between River Islands Parkway and Spartan Way, from Lathrop Land Acquisition, LLC., approving budget amendment, rescind previous approval of Change Order No. 32, and approving Change Order No. 33 for landscape maintenance services with Silva Landscape.
4. 11 ACCEPT PUBLIC IMPROVEMENTS CONSTRUCTED BY DSS COMPANY DBA
KNIFE RIVER CONSTRUCTION FOR LATHROP ROAD PAVEMENT REPAIR, CIP PS 24- 35
Adopted Resolution 24- 5588 accepting public improvements constructed by DSS Company, dba Knife River Construction, for Lathrop Road pavement repair, CIP PS 24- 35, authorizing the filing of a Notice of Completion, releasing contract retention, and releasing Performance and Payment Bonds.
July 8, 2024 Lathrop City Council Regular Meeting Minutes Page 4 28 4. 12 AWARD CONSTRUCTION CONTRACT TO MARINA LANDSCAPE, INC. FOR CONSTRUCTION OF THE GREEN PARK IMPROVEMENTS, CIP PK 22- 12
AND APPROVE BUDGET AMENDMENT
Pulled by Councilmember Akinjo. A question and answer period ensued.
City Engineer Brad Taylor provided additional information.
Adopted Resolution 24- 5589 awarding Construction Contract to Marina Landscape, Inc. for the Green Park improvements, CIP PK 22- 12, and approving budget amendment.
4. 13 AWARD ADDITIONAL SCOPE OF WORK TO DSS COMPANY DBA KNIFE
RIVER CONSTRUCTION AND APPROVE BUDGET AMENDMENT TO
CONSTRUCT SIDEWALK IMPROVEMENTS AT THE LOUISE AVENUE AND MCKINLEY AVENUE INTERSECTION PROJECT, CIP PS 15- 02
Adopted Resolution 24- 5590 awarding additional scope of work to DSS Company, dba Knife River Construction, and approving budget amendment to construct sidewalk improvements at the Louise Avenue and McKinley Avenue Intersection Project, CIP PS 15- 02.
4. 14 AWARD CONSTRUCTION CONTRACT TO DSS COMPANY DBA KNIFE
RIVER CONSTRUCTION FOR CONSTRUCTION OF YOSEMITE AVENUE
PAVEMENT REHABILITATION, CIP PS 24- 31 AND APPROVE BUDGET
AMENDMENT
Adopted Resolution 24- 5591 awarding Construction Contract to DSS Company, dba Knife River Construction, for construction of Yosemite Avenue pavement rehabilitation, CIP PS 24- 31, and approving a budget amendment.
4. 15 RATIFY CITY MANAGER' SEXECUTION OF CONTRACT CHANGE ORDER NO. 2 AND ACCEPT PUBLIC IMPROVEMENTS CONSTRUCTED BY LUMA ENGINEERING CONTRACTORS, INC. FOR PARK WEST SHADE SHELTER Adopted Resolution 24- 5592 ratifying City Manager' sexecution of Contract Change Order No. 2, accepting public improvements constructed by Luma Engineering Contractors, Inc., for the Park West shade shelter, authorizing the filing of a notice of completion, and releasing contract retention and Performance and Payment Bonds.
RIVER ISLANDS CONSENT ITEM( S)
City Attorney Salvador Navarrete explained that any potential conflict for Item 4. 16 is insignificant, as the approval discretion lies within the authority and control of the City Engineer. The City Engineer has deemed the improvements completed per the approved plans and specifications. Therefore, approval of the C2 Community Park July 8, 2024 Lathrop City Council Regular Meeting Minutes Page 5 29 Improvements by the City Council serves to the benefit of the public and does not change or alter the existing River Islands development agreement.
4. 16 ACCEPT C2 COMMUNITY PARK IMPROVEMENTS ASSOCIATED WITH THE SIA FOR TRACT 3794 FROM RIVER ISLANDS CUSTOM HOMESITES, LLC.
LOCATED WITHIN THE LAKESIDE EAST DISTRICT OF RIVER ISLANDS On a motion by Councilmember Lazard, seconded by Councilmember Torres -O' Callaghan, the City Council adopted Resolution 24- 5593 accepting C2 Community Park improvements, associated with the Subdivision Improvement Agreement for Tract 3794 from River Islands Custom Homesites, LLC, located within the Lakeside East District of River Islands, by the following roll call vote:
Ayes: Lazard, Torres -O' Callaghan and Akinjo
Noes: None
Absent: Dhaliwal and Diallo
Abstain: None
5. SCHEDULED ITEMS
5. 1 PUBLIC HEARING ( PUBLISHED NOTICE) TO CONSIDER A GENERAL PLAN
AMENDMENT, PRE -ZONE, CONDITIONAL USE PERMIT, SITE PLAN
REVIEW, AND ANNEXATION FOR THE SINGH PETROLEUM PROJECT
Community Development Director Rick Caguiat and Planning Consultant David Niskanen with JB Anderson Planning provided the presentation. A question and answer period followed. City Engineer Brad Taylor provided additional information related to the Roth Road realignment and interchange improvements.
Councilmember Akinjo opened the public hearing. Melvin Higginbotham in -person speaker), architect representing Singh Petroleum applicant), provided additional information related to the project. Mike Hakeem ( in -person speaker), legal representative for the applicant provided additional information related to the project. There were no other speakers. Councilmember Akinjo closed the public hearing. At the request of the City Council, JD Hightower, Executive Officer for San Joaquin Local Agency Formation Commission, provided information regarding the annexation process.
On a motion by Councilmember Akinjo, seconded by Councilmember Lazard, the City Council considered the following:
1. Held a public hearing;
July 8, 2024 Lathrop City Council Regular Meeting Minutes Page 6 30 2. Adopted Resolution 24- 5594 certifying the Final
Environmental Impact Report ( FEIR) (SCH# 2022120596),
CEQA Findings of Fact, Statement of Overriding
Considerations, and Mitigation Measures/ Monitoring Plan for the Singh Petroleum Project;
3. Adopted Resolution 24- 5595 approving a General Plan Amendment of APN: 191- 250- 06 to FC, Freeway
Commercial ( GPA- 20- 60);
4. Introduced First Reading of an Ordinance for Zoning Map Amendment related to the Pre -Zoning of the Subject
Annexation Area ( REZ- 20- 61);
5. Adopted Resolution 24- 5596 approving a Conditional
Use Permit and Site Plan Review to Allow for the
Development of a Travel Plaza on the Subject Properties CUP - 20- 62 and SPR- 20- 63); and
6. Adopt Resolution 24- 5597 directing staff to file an application with San Joaquin Local Agency Formation
Commission for the Annexation of 22. 42 -acres ( ANX- 20- 64), by the following roll call vote:
Ayes: Lazard, Torres -O' Callaghan and Akinjo
Noes: None
Absent: Dhaliwal and Diallo
Abstain: None
5. 2 DISCUSS PROPOSED COMMEMORATIVE LIGHTING POLICY FOR THE
CITY OWNED PALM TREES
Community Development Director Rick Caguiat provided the presentation. A question and answer period followed. Councilmember Torres -O' Callaghan requested adding protocol for lighting palm trees commemorating fallen first responders, in which red lights would commemorate fallen firefighters and blue lights would commemorate fallen police officers. JD Hightower ( in person speaker) requested Council consideration of lighting the palm trees red, white, and blue on June 14, commemorating National Flag Day.
On a motion by Councilmember Lazard, seconded by Councilmember Torres -O' Callaghan, the City Council discussed and adopted Resolution 24- 5598 approving the revised Commemorative Lighting Policy for the City Owned Palm Trees, which included protocols for lighting palm trees commemorating fallen first responders ( red lights commemorating fallen firefighters and blue lights commemorating fallen police officers) and lighting the palm trees red, white, and blue on June 14, commemorating National Flag Day.
July 8, 2024 Lathrop City Council Regular Meeting Minutes Page 7 31 Ayes: Lazard, Torres -O' Callaghan and Akinjo
Noes: None
Absent: Dhaliwal and Diallo
Abstain: None
6. COUNCIL COMMUNICATIONS
6. 1 COUNCILMEMBER TORRES- O' CALLAGHAN REFERRAL - Discuss Installing Traffic Signal at Central Pacific and Spartan Way, Near the High School Councilmember Torres -O' Callaghan provided a summary of the referral.
A question and answer period ensued. City Engineer Brad Taylor provided additional information regarding the feasibility of the traffic signal. Council consensus accepted the referral. The item will be agendized during a future meeting.
6. 2 MAYOR & COUNCILMEMBER COMMITTEE REPORT( S)
Councilmember Torres -O' Callaghan reported her attendance to the National League of Cities Hispanic Elected Local Officials ( HELO) and Small Cities Conferences.
Councilmember Akinjo reported his attendance to meetings of the San Joaquin Area Flood Control Agency and provided an update on the successful passage of the Mossdale Overlay Assessment District.
6. 3 MAYOR & COUNCILMEMBER COMMENT( S)
Councilmember Torres -O' Callaghan expressed appreciation to both Chief Sealy and Chief Bramell for July 4th response times and proactive enforcement and prevention on illegal firework activity.
Councilmembers Akinjo and Lazard echoed similar sentiments.
7. ADJOURNMENT - There being no further business, Councilmember Akinjo adjourned the meeting at 8: 47 p. m.
esa Vargas, MMC
Government Services Director
City Clerk
July 8, 2024 Lathrop City Council Regular Meeting Minutes Page 8 32 33
34 35
36 37
38 39
40 41
42 43
44 ITEM 4. 5
CITY OF LATHROP
CITY COUNCIL SPECIAL MEETING
MONDAY, AUGUST 19, 2024, 5: 00 P. M.
COUNCIL CHAMBER, CITY HALL
390 Towne Centre Drive, Lathrop, CA 95330
MINUTES
1. PRELIMINARY
1. CALL TO ORDER - Mayor Dhaliwal called the meeting to order at 5: 03 p. m
1. 2 ROLL CALL Present: Mayor Dhaliwal; Vice Mayor Diallo; and Councilmember Akinjo
Absent: Councilmembers Lazard and Torres -
O' Callaghan
Councilmember Lazard arrived after roll call at 5: 18 p. m.
1. 3 PLEDGE OF ALLEGIANCE - Vice Mayor Diallo led the pledge of allegiance.
1. 4 DECLARATION OF CONFLICT( S) OF INTEREST - None
1. 5 CLOSED SESSION
1. 5. CONFERENCE WITH LEGAL COUNSEL Anticipated Litigation - Significant Exposure to Litigation Pursuant to Government Code Section 54956. 9(d)( 2) and 54956. 9(e)(1):
1 Potential Case
Closed Session Items 1. 2.3 1. 5.2 through 1. 2.8 1.5.7 are related to Right of Way Acquisition for the Harlan Road Realignment at Roth Road Project (CIP PS 14- 04)
1.5.2 CONFERENCE WITH REAL PROPERTY NEGOTIATIONS: Pursuant to Government Code Section: 54956. 8
Address: APN 196- 020- 130, 11550 S. Harlan Rd, Lathrop, CA Agency Negotiator: Stephen J. Salvatore, City Manager
Negotiating Parties: Lathrop Sands Community, LLC
Under Negotiation: Price and Terms of Purchase
1. 5.3 CONFERENCE WITH REAL PROPERTY NEGOTIATOR: Pursuant to Government Code Section: 54956. 8
Address: APN 196- 020- 140, 11616 S. Harlan Rd, Lathrop CA Agency Negotiator: Stephen J. Salvatore, City Manager
Negotiating Parties: Balwant Sandhu
Under Negotiation: Price and Terms of Purchase
August 19, 2024 Lathrop City Council Special Meeting Minutes Page 1 45 1. 5.4 CONFERENCE WITH REAL PROPERTY NEGOTIATOR: Pursuant to Government Code Section: 54956. 8
Address: APN 196- 020- 150, 11674 S. Harlan Road, Lathrop CA Agency Negotiator: Stephen J. Salvatore, City Manager
Negotiating Parties: Herrera & Torres
Under Negotiation: Price and Terms of Purchase
1. 5. CONFERENCE WITH REAL PROPERTY NEGOTIATOR: Pursuant to Government Code Section: 54956. 8
Address: APN 196- 020- 160, 11672 S. Harlan Rd, Lathrop CA Agency Negotiator: Stephen J. Salvatore, City Manager
Negotiating Parties: Torres, Herrera, Hernandez
Under Negotiation: Price and Terms of Purchase
1. 5.6 CONFERENCE WITH REAL PROPERTY NEGOTIATOR: Pursuant to Government Code Section: 54956. 8
Address: APN 196- 020- 200, 116 Roth Rd, Lathrop CA
Agency Negotiator: Stephen J. Salvatore, City Manager
Negotiating Parties: Fast Lane Sierra
Under Negotiation: Price and Terms of Purchase
1. 5.7 CONFERENCE WITH REAL PROPERTY NEGOTIATOR: Pursuant to Government Code Section: 54956. 8
Address: APN 196- 020-60, 11338 S. Harlan Rd, Lathrop CA Agency Negotiator: Stephen J. Salvatore, City Manager
Negotiating Parties: Fast Lane Sierra
Under Negotiation: Price and Terms of Purchase
1.5.8 CONFERENCE WITH REAL PROPERTY NEGOTIATOR: Pursuant to Government Code Section: 54956. 8
Address: APN 196- 020-80, 11378 S Harlan Road, Lathrop CA Agency Negotiator: Stephen J. Salvatore, City Manager
Negotiating Parties: Ravinder & Daljit Dhillon
Under Negotiation: Price and Terms of Purchase
1.5.9 CONFERENCE WITH REAL PROPERTY NEGOTIATOR: Pursuant to Government Code Section: 54956. 8
Address: APN 196- 020- 120, 11500 S Harlan Road, Lathrop CA Agency Negotiator: Stephen J. Salvatore, City Manager
Negotiating Parties: Ravinder & Daljit Dhillon; Singh
Under Negotiation: Price and Terms of Purchase
1.5.0 CONFERENCE WITH REAL PROPERTY NEGOTIATOR: Pursuant to Government Code Section: 54956. 8
Address: APN 196- 020- 100, 11432 S. Harlan Rd, Lathrop CA Agency Negotiator: Stephen J. Salvatore, City Manager
Negotiating Parties: Ravinder & Daljit Dhillon; Sanchos / Albararo Under Negotiation: Price and Terms of Purchase
August 19, 2024 Lathrop City Council Special Meeting Minutes Page 2 46 1.5.1 CONFERENCE WITH REAL PROPERTY NEGOTIATOR: Pursuant to Government Code Section: 54956. 8
Address: APN 196- 020-40, 134 Roth Rd, Lathrop CA
Agency Negotiator: Stephen J. Salvatore, City Manager
Negotiating Parties: Inderpal Pal; Romo / Thompson
Under Negotiation: Price and Terms of Purchase
1.5.2 CONFERENCE WITH REAL PROPERTY NEGOTIATOR: Pursuant to Government Code Section: 54956. 8
Address: APN 196- 020- 110, 11525 S. Harlan Rd, Lathrop CA Agency Negotiator: Stephen J. Salvatore, City Manager
Negotiating Parties: J & D Cadell Family Trust
Under Negotiation: Price and Terms of Purchase
1. 5.3 CONFERENCE WITH REAL PROPERTY NEGOTIATOR: Pursuant to Government Code Section: 54956. 8
Address: APN 196- 020-50, 11333 S. Harlan Rd, Lathrop CA Agency Negotiator: Stephen J. Salvatore, City Manager
Negotiating Parties: 3 & D Cadell Family Trust
Under Negotiation: Price and Terms of Purchase
1. 5.4 CONFERENCE WITH REAL PROPERTY NEGOTIATOR: Pursuant to Government Code Section: 54956. 8
Address: APN 196- 020- 180, 11265 S. Harlan Rd, Lathrop CA Agency Negotiator: Stephen J. Salvatore, City Manager
Negotiating Parties: 3 & D Cadell Family Trust
Under Negotiation: Price and Terms of Purchase
1. 5.5 CONFERENCE WITH REAL PROPERTY NEGOTIATOR: Pursuant to Government Code Section: 54956. 8
Address: APN 196- 030-10, 250 Roth Rd, Lathrop CA
Agency Negotiator: Stephen J. Salvatore, City Manager
Negotiating Parties: Schell & Kampeter, Inc. (Diamond Holdings) Under Negotiation: Price and Terms of Purchase
1. 5.6 CONFERENCE WITH REAL PROPERTY NEGOTIATOR: Pursuant to Government Code Section: 54956. 8
Address: APN 193- 30- 400, 10998 S. Harlan Rd, Lathrop CA Agency Negotiator: Stephen J. Salvatore, City Manager
Negotiating Parties: Stephen & Darlene Beneto
Under Negotiation: Price and Terms of Purchase
1.5.7 CONFERENCE WITH REAL PROPERTY NEGOTIATOR:
Pursuant to Government Code Section: 54956. 8
Address: APN 196- 030-20, 342 Roth Rd, Lathrop CA
Agency Negotiator: Stephen J. Salvatore, City Manager
Negotiating Parties: Monier Lifetime, LLC.
Under Negotiation: Price and Terms of Purchase
August 19, 2024 Lathrop City Council Special Meeting Minutes Page 3 47 RECONVENE - Mayor Dhaliwal reconvened the meeting at 6: 02 p. m.
1.5.8 REPORT FROM CLOSED SESSION
City Attorney Salvador Navarrete reported that the City Council provided direction and directed staff not to file ligation pursuant to Item 1. 5.; and directed staff to initiate negotiations pursuant to Items 1. 5.2 through 1. 5.7.
2. ADJOURNMENT - There being no further business, Mayor Dhaliwal adjourned the meeting at 6: 04 p. m.
esa Vargas, MMC
Government Services Director
City Clerk
August 19, 2024 Lathrop City Council Special Meeting Minutes Page 4 48 ITEM 4. 6
CITY MANAGER' S REPORT
SEPTEMBER 9, 2024 CITY COUNCIL REGULAR MEETING
ITEM: 2024 CONFLICT OF INTEREST CODE BIENNIAL
AMENDMENT
RECOMMENDATION: Adopt Resolution Adopting an Amended Conflict of Interest Code
SUMMARY:
The City of Lathrop has adopted a local Conflict of Interest Code as mandated by the Political Reform Act of 1974. In addition, the Act requires the City to review the Code biennially on even -numbered years. A Conflict of Interest Code is the legal instrument requiring those individuals holding designated positions to disclose their financial interests to help avoid conflicts of interest.
Under the Political Reform Act, a public official has a disqualifying conflict of interest in a governmental decision if it is foreseeable that the decision will have a financial impact on their personal finances or other financial interests. In such cases, there is a risk of biased decision -making that could sacrifice the public' sinterest in favor of the official' s
private financial interests. To avoid actual bias or the appearance of possible improprieties, the public official is prohibited from participating in the decision.
From the last update in September 2022, the City made several changes to existing positions and added new classifications. In reviewing the existing Conflict of Interest Code and newly added positions, it was determined that an amendment is necessary to reflect the current organizational structure, position classifications and duties.
BACKGROUND:
The Political Reform Act of 1974 requires that cities and other local government agencies adopt local Conflict of Interest Codes. Lathrop' scode requires disclosure of financial interests of certain employees, consultants and members of boards and commissions if these persons are likely to be involved in decision - making that could affect their own financial interests.
All public employees must comply with the State' s
general conflict of interest laws by
abstaining from influencing or making decisions that would affect their own financial interests. Additionally, employees who hold positions designated in the City' s Conflict
of Interest Code must disclose specified types of financial interests on annual financial disclosure statements that are filed with the Government Services Director / City Clerk.
The Political Reform Act also requires every local government agency to review its Conflict of Interest Code biennially to determine its accuracy no later than October 1 of even -numbered years, or the first business day in October. 49 CITY MANAGER' S REPORT
SEPTEMBER 9, 2024 CITY COUNCIL REGULAR MEETING
2024 CONFLICT OF INTEREST CODE BIENNIAL AMENDMENT
PAGE 2
Updates do not change the basic conflict of interest abstention rules, which reflect state law. However, changes in City staff titles, organization structure and responsibilities require that the designated position list and disclosure categories be updated as indicated below.
How a Conflict of Interest Code Works:
Public official/ employee holds a position that involves making or participating in making governmental decisions.
Position is designated in the Conflict of Interest Code:
o Disclosure is based on a position' slevel of decision - making.
Official/ employee files Statements of Economic Interests ( Form 700):
o Serves as a reminder to official/ employee of potential conflicts of interest.
o The Form 700 is a public document.
Types of Form 700 Filers:
Code Filers
A designated position in a conflict of interest code is often referred to as a " code filer" because the position files a Form 700 based on its designation in the conflict of interest code. An overview of conflicts of interests under the Political Reform Act is as Attachment B to the staff report.
87200 Filers
Positions specifically listed in Section 87200 or meets the criteria in Regulation 18700. 3 as a public investment manager is an 87200 filer, such as: Mayor, Council Members, Planning Commissioners, City Manager, City Attorney, Treasurer, Finance Director, or any Public Official and or employee who directly manages the City' s public investments. Does not include individuals who work under the supervision of a Financial Manager or Director.
What Does It Mean to Make or Participate in a Decision? When reviewing the City' s
Conflict of Interest Code, it is important in understand which positions are authorized in making decisions or participating in the decision - making process. In terms of the Political Reform Act, making a decision means voting on a matter, approving the budget, adopting policy, making purchasing decision, and entering into contracts. To participate in a decision means negotiating the terms of a contract, writing the specifications of a bid, and advising or making recommendations to the decision - maker or governing body without significant intervening substantive review.
50 CITY MANAGER' S REPORT
SEPTEMBER 9, 2024 CITY COUNCIL REGULAR MEETING
2024 CONFLICT OF INTEREST CODE BIENNIAL AMENDMENT
Disqualifying Financial Interest
PAGE 3
If a decision may have a financial impact or effect on any of the foregoing interests, an official is disqualified from governmental decision if the following two conditions are met:
1. The financial impact or effect is foreseeable, and
2. The financial impact or effect is significant enough to be considered material.
Generally, a financial impact or effect is presumed to be both foreseeable and material if the financial interest is " explicitly" or directly involved in the decision. A financial interest is explicitly involved in the decision whenever the interest is a named party in, or the subject of, a governmental decision before the official or the official' s
agency.
If the interest is " not explicitly involved" in the decision, a financial impact or effect is reasonably foreseeable if the effect can be recognized as a realistic possibility and more than hypothetical or theoretical. A financial effect need not be likely to occur to be considered reasonably foreseeable.
However, for interests " not explicitly involved" in the decision, different standards apply to determine whether a foreseeable effect on an interest will be material depending on the nature of the interest. The Fair Political Practices Commission FPPC) has adopted rules for deciding what kinds of financial effects are important enough to trigger a conflict of interest. These rules are called " materiality standards," that is, they are the standards that should be used for judging what kind of financial impacts resulting from governmental decisions are considered material or important.
There are too many materiality standards to adequately describe them in totality. To determine the applicable materiality standard, or to obtain more detailed information on conflicts, an official may seek assistance from agency counsel or the FPPC anytime the official has reason to believe a decision may have a financial impact or effect on his or her personal finances or other financial interests.
The Fair Political Practices Commission allows five ( 5) types of interests that may result in disqualification, which are broaden into seven ( 7) detailed Disclosure Categories listed below for the City of Lathrop in Exhibit B. These are the disqualifications applicable in 2024 Biennial Review:
Business Entity. A business entity in which the official has an investment of 2, 000 or more in which he or she is a director, officer, partner, trustee, employee, or manager.
Real Property. Real property in which the official has an interest of $ 2, 000 or more including leaseholds. ( However, month -to -month leases are not considered real property interests.)
51 CITY MANAGER' S REPORT
SEPTEMBER 9, 2024 CITY COUNCIL REGULAR MEETING
2024 CONFLICT OF INTEREST CODE BIENNIAL AMENDMENT
PAGE 4
Income. An individual or an entity from whom the official has received income or promised income aggregating to $ 500 or more in the previous 12 months, including the official' scommunity property interest in the income of his or her spouse or registered domestic partner.
Gifts. An individual or an entity from whom the official has received gifts aggregating to $ 590 or more in the previous 12 months.
Personal Finances. The official' s personal finances including his or her expenses, income, assets, or liabilities, as well as those of his or her immediate family.
Exceptions
Not all conflicts of interest prevent a public official from lawfully taking part in the government decision. There are two ( 2) limited exceptions to the conflict of interest rules:
1. The Public Generally Exception. A public official is not disqualified from a decision if the effect on the official' s interests is indistinguishable from the effect on the public.
2. Legally Required to Participate. In certain rare circumstances, a public official may be randomly selected to take part in a decision if a quorum cannot be reached because too many officials are disqualified under the Act.
Exceptions must be considered with caution. A public official should contact the City Attorney or the FPPC to determine if an exception applies.
Recusal Requirements
An official with a disqualifying conflict of interest may not make, participate in making, or use his or her position to influence a governmental decision. When appearing before his or her own agency or an agency subject to the authority or budgetary control of his or her agency, an official is making, participating in making, or using his or her position to influence a decision any time the official takes any action to influence the decision including directing a decision, voting, providing information or a recommendation, or contacting or appearing before any other agency official. When appearing before any other agency, the official must not act or purport to act in his or her official capacity or on behalf of his or her agency.
Certain officials ( including City Council Members and Planning Commissioners) have a mandated manner in which they must disqualify from decisions made at a public meeting ( including closed session decisions) and must publicly identify a conflict of interest and leave the room before the item is discussed. 52 CITY MANAGER' S REPORT
SEPTEMBER 9, 2024 CITY COUNCIL REGULAR MEETING
2024 CONFLICT OF INTEREST CODE BIENNIAL AMENDMENT
PAGE 5
While there are limited exceptions that allow a public official to participate as a member of the public and speak to the press, the exceptions are interpreted narrowly and may require advice from the agency' scounsel or the FPPC.
List of Designated Positions:
The list of designated positions is part of the City' sCode specifying which employees must file annual financial disclosure statements. For each designated position, the list establishes the categories of financial interests for which disclosure must be made. Requirements for disclosure differ from job to job in accordance with the types of financial interests, which might be affected by an officer or employee' s decision - making.
The following summarized list of designated positions is proposed to be amended to reflect the City' scurrent position classifications and duties. The categories of required disclosure have been modified for some positions to reflect the financial interests that may currently be affected by an employee' sgovernmental decisions. A copy of the updated proposed list of designated positions is attached to the Resolution as Exhibit A.
At this time, the majority of the positions listed in Exhibit A are filled; very few remain vacant, and or were recently unfunded. Vacant or recently unfunded positions will remain on the Conflict of Interest Code Amendment list until positions are removed by Council Resolution from the City' s
Grade Step table.
Summary of Changes
Existing positions recently evaluated, and newly added positions recommended to be added to the Conflict of Interest Code ( COI Code):
Action Department Position/ Title Reason( s)
Add Finance Senior Account Existing title; position evaluated and recommended to add to COI
Code. Position funded by Reso 22-
5038. Incumbent currently FORM
700 Filer.
Add Public Works • Associate Existing title; position evaluated Engineer and recommended to add to COI
Code. Position funded by Reso 22-
5134. Incumbent( s) currently FORM
700 Filer( s).
53 CITY MANAGER' S REPORT
SEPTEMBER 9, 2024 CITY COUNCIL REGULAR MEETING
2024 CONFLICT OF INTEREST CODE BIENNIAL AMENDMENT
PAGE 6
Add Police • Police New title; position evaluated and
Lieutenant recommended to add to COI Code.
Position created by Reso 23- 5242.
Incumbent( s) currently FORM 700
Filer( s).
Add Community • Associate Existing title; position evaluated Development Planner and recommended to add to COI
Code. Position funded by Reso 23-
5322. Incumbent currently FORM
700 Filer.
Add Public Works • Compliance New title; position evaluated and Engineer recommended to add to COI Code.
Position created by Reso 23- 5322.
Incumbent currently FORM 700
Filer.
Add City • Deputy City New title; position evaluated and Manager' s Manager recommended to add to COI Code.
Office Position created by Reso 23- 5324.
Incumbent currently FORM 700
Filer.
Add Police • Animal Center New title; position evaluated and Manager recommended to add to COI Code.
Position created by Reso 23- 5429.
Incumbent currently FORM 700
Filer.
Add Parks & • Parks & Title reclassification; position
Recreation Recreation evaluated and recommended to add
Manager to COI Code. Position created by
Reso 24- 5483. Incumbent currently
FORM 700 Filer.
Add Police • Property & New title; position evaluated and Department Evidence recommended to add to COI Code.
Manager Position created by Reso 24- 5483.
Incumbent currently FORM 700
Filer.
Title reclassification; former
title/ position was included in
current COI Code. Title updated by
Reso 24- 5483. Incumbent( s)
currently FORM 700 Filer( s).
Change Building • Management Existing title; adding position to the Department Analyst I/I Building Department. Position
Add Police
Department
Police Captain
previously
Police
Commander)
exists in various departments in the
current COI Code. Incumbent
currently FORM 700 Filer.
54 CITY MANAGER' S REPORT
SEPTEMBER 9, 2024 CITY COUNCIL REGULAR MEETING
2024 CONFLICT OF INTEREST CODE BIENNIAL AMENDMENT
PAGE 7
Change Parks & • Management Existing title; adding position to the Recreation Analyst I/I Parks & Recreation Department.
Classification/ position exists in
various departments in the current
COI Code. Incumbent currently
FORM 700 Filer.
Change Public Works • Streets and Existing title; adding position Maintenance transfer to Public Works with
Manager greater responsibilities; removing
from Parks & Rec. Classification
exists in the current COI Code.
Update Parks & • Department Removal of " Maintenance
Recreation Name Services"; due to maintenance
division transfer to Public Works.
Summary of Changes
Positions deleted by Council Resolution and the City' sGrade Step Table; to be removed from the Conflict of Interest Code ( COI Code):
Action Department Position/ Title Reason
Delete Police
Department
Delete Parks &
Recreation
Police Commander Title to be removed from COI
Code by Resolution 24- 5483;
position( s) reclassified to Police
Captain
Title to be removed from COI
Code by Resolution 24- 5483;
position reclassified to Parks &
Recreation Manager with greater
responsibilities; and eliminated
from Grade Step Table.
Delete Parks & • Parks and Title to be removed from COI Recreation Facilities Manager Code by Resolution 24- 5483; position eliminated from Grade
Step Table.
Recreation
Manager
Disclosure Categories:
The disclosure categories establish the types of financial disclosure that must be made by each designated employee. A copy of the list of disclosure categories is attached to the Resolution as Exhibit B.
55 CITY MANAGER' S REPORT
SEPTEMBER 9, 2024 CITY COUNCIL REGULAR MEETING
2024 CONFLICT OF INTEREST CODE BIENNIAL AMENDMENT
REASON FOR RECOMMENDATION:
PAGE 8
The Political Reform Act requires every local government agency to review its Conflict of Interest Code biennially to determine its accuracy no later than October 1 of even - numbered years, or the first business day in October.
This year, the biennial review of the City' s
Conflict of Interest Code is due by October
1, 2024. Organizational changes have resulted in a need to amend the Code.
FISCAL IMPACT:
None.
ATTACHMENTS:
A. Resolution adopting an amended Conflict of Interest Code a. Exhibit A - Designated Positions
b. Exhibit B - Disclosure Categories
B. Informational Pamphlet: Overview of Conflicts of Interest under the Political Reform Act, published May 2022
56 CITY MANAGER' S REPORT
SEPTEMBER 9, 2024 CITY COUNCIL REGULAR MEETING
2024 CONFLICT OF INTEREST CODE BIENNIAL AMENDMENT
APPROVALS:
resa Vargas
Government Services Director
City Clerk
Date
PAGE 9
Thomas Hedegard Date
Deputy City Manager
q. /-7-- e ZY
Salvador Navarrete Date
City Attorney
Stephen J. Salvatore Date
City Manager
57 RESOLUTION NO. 24-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LATHROP ADOPTING
AN AMENDED CONFLICT OF INTEREST CODE
WHEREAS, the City of Lathrop adopted and promulgated a Conflict of Interest Code pursuant to the terms of Title 2, Division 6 of the California Code of Regulations, Section 18730, and within the meaning of the Political Reform Act of 1974, Government Code Section 87300, et seq.; and
WHEREAS, under the Political Reform Act, Government Code Section 87306 permits the amendment of the City' s
Conflict of Interest Code; and
WHEREAS, the City Council previously adopted Resolutions 22- 5133 adopting an amended Conflict of Interest Code; and
WHEREAS, the Political Reform Act, Government Code section 87306. 5, requires every local government agency every even - numbered year, to review its Conflict of Interest Code biennially to determine if it is accurate, no later than October 1 of the same year; and
WHEREAS, in the biennial review of designated positions, it was determined the list of designated positions needed to be amended to reflect current staffing and organizational structure.
NOW, THEREFORE, BE IT RESOLVED that the amended Conflict of Interest Code, including the revised list of Designated Positions ( Exhibit A) and the Disclosure Category explanations ( Exhibit B), is hereby approved; and NOW, THEREFORE, BE IT FURTHER RESOLVED, that Resolution No. 22- 5133 be repealed and replaced by the adoption of this resolution PASSED AND ADOPTED this 9th day of September 2024, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Sonny Dhaliwal, Mayor
ATTEST: APPROVED AS TO FORM:
Teresa Vargas, City Clerk Salvador Navarrete, City Attorney Resolution No. 24-
58 EXHIBIT A
CITY OF LATHROP
CONFLICT OF INTEREST CODE
The Political Reform Act ( Government Code Section 81000, et seq.) requires state and local government agencies to adopt and promulgate Conflict of Interest Codes.
The Fair Political Practices Commission has adopted a regulation ( 2 Cal. Code of Regs.
Section 18730) which contains the terms of a standard Conflict of Interest Code, which may be incorporated by reference in an agency' scode. After public notice and hearing, it may be amended by the Fair Political Practices Commission to conform to amendments in the Political Reform Act. Therefore, the terms of 2 California Code of Regulations Section 18730 and any amendments to it duly adopted by the Fair Political Practices Commission are hereby incorporated by reference. This regulation designating officials and employees and establishing disclosure categories shall constitute the Conflict of Interest Code of the City of Lathrop.
DESIGNATED POSITIONS
Individuals holding designated positions shall file Statements of Economic Interest with the City Clerk who will make the statements available for public inspection and reproduction ( Government Code Section 82008).
OFFICIALS WHO MANAGE PUBLIC INVESTMENTS
Officials who manage public investments, as defined by 2 Cal. Code of Regs. §18701 b), are NOT subject to the City' scode, but are subject to the disclosure requirements of the Act ( Government Code Section 87200 et seq.). [ Regs. § 18730( b)( 3)]. These positions are listed here for informational purposes only. It has been determined that the positions listed below are City of Lathrop officials who manage public investments:
City Manager/ Treasurer Mayor
City Attorney City Councilmembers
Finance Director Planning Commission Members
Upon receipt of the statements, the City Clerk shall make and retain copies and forward the originals to the Fair Political Practices Commission.
The disclosure categories and requirements for these positions are set forth in Article 2 of Chapter 7 of the Political Reform Act, Government Code Section 87200 et seq.
They generally require the disclosure of interests in real property in the agency' s jurisdiction, as well as investments, business positions and sources of income including gifts, loans, and travel payments).
Adopted by Resolution 24- Page 1 of 4
59 DESIGNATED POSITIONS
DEPARTMENTS/ Positions Disclosure Categories
BUILDING
Chief Building Official
Assistant Chief Building Official
Permit and Plan Check Supervisor
Building Inspector I/I/I
Management Analyst I/I - Confidential
1, 2, 3, 5, 7
1,2,3,5,7
1,2,3,5,7
1,2,3,5,7
1,3,4,5,7
CITY ATTORNEY
City Attorney *
CITY CLERK
City Clerk / Government Services Director
Deputy City Clerk
1, 2, 3, 5
1,2,6
CITY MANAGER
City Manager / Treasurer *
Assistant City Manager 1, 2, 3, 4, 5, 7
Deputy City Manager 1, 2, 3, 4, 5, 7
Economic Development Administrator 1, 2, 3, 5
COMMUNITY DEVELOPMENT
Community Development Director
Assistant Community Development Director
Principal Planner
Senior Planner
Associate Planner
Assistant Planner
1,2,3,5,7
1,2,3,5,7
1,2,3,5,7
1,2,3,5,7
1,2,3,5,7
1,2,3,5,7
FINANCE
Finance Director *
Deputy Finance Director 1, 2, 3, 4, 5, 7
Accounting Manager 1, 2, 3, 4, 5, 7
Finance Manager 1, 2, 3, 4, 5, 7
Budget Manager 1, 2, 3, 4, 5, 7
Senior Management Analyst 1, 2, 3, 4, 5, 7
Senior Accountant 1, 2, 3, 4, 5, 7
Management Analyst I/I - Confidential 1, 3, 4, 5, 7
Accountant 1, 3, 4, 5, 7
Customer Service Supervisor 1, 3, 4, 5, 7
HUMAN RESOURCES
Human Resources Director
Human Resource Manager
Human Resources Analyst I/I - Confidential
1, 2, 3, 5
1, 2, 6
1, 2, 6
Adopted by Resolution 24- Page 2 of 4
60 INFORMATION SYSTEMS / TECHNOLOGY
Information Systems Director
Information Technology Engineer I/I/I
Management Analyst I/I - Confidential
PARKS & RECREATION
Parks & Recreation Director
Parks & Recreation Deputy Director
Parks and Recreation Superintendent
Parks & Recreation Manager
Recreation Supervisor
Management Analyst I/I - Confidential
POLICE
Chief of Police
Police Captain
Police Lieutenant
Police Sergeant
Police Services Manager
Animal Center Manager
Property & Evidence Manager
Police Records Supervisor
Community Services Supervisor
Management Analyst I/I - Confidential
PUBLIC WORKS
Public Works Director
City Engineer
Assistant Public Works Director
Land Development Manager
Project Manager
Principal Engineer
Senior Civil Engineer
Compliance Engineer
Associate Engineer
Assistant Engineer
Senior Construction Manager
Streets and Maintenance Manager
Construction Superintendent
Senior Construction Inspector
Construction Inspector I/I/I
Utility Operations Superintendent
Utility Plant Supervisor
Senior Management Analyst
Management Analyst I/I - Confidential
MAYOR AND CITY COUNCILMEMBERS
PLANNING COMMISSION MEMBERS
PARKS AND RECREATION COMMISSION MEMBERS
1, 2, 3, 5, 7
1, 3, 5, 7
1,3,5,7
1,2,3,5,7
1,2,3,5,7
1, 3, 5, 7
1, 3, 5, 7
1, 3, 5, 7
1, 3, 4, 5, 7
1, 2, 3, 5, 7
1, 2, 3, 5, 7
1, 2, 3, 5, 7
1,2,3,6,7
1,2,3,6,7
1,2,3,6,7
1, 2, 3, 6, 7
1, 2, 3, 6, 7
1, 2, 3, 6, 7
1, 2, 3, 6, 7
1, 2, 3, 5, 7
1,2,3,5,7
1, 2, 3, 5, 7
1, 2, 3, 5, 7
1,2,3,5,7
1, 2, 3, 5, 7
1, 2, 3, 6, 7
1,2,3,6,7
1,2,3,6,7
1,2,3,6,7
1, 2, 3, 5, 7
1, 2, 3, 5, 7
1, 2, 3, 5, 7
1, 2, 3, 5, 7
1, 2, 3, 5, 7
1, 2, 3, 5, 7
1, 2, 3, 6, 7
1, 2, 3, 6, 7
1, 2, 3, 6, 7
1, 2, 3
Adopted by Resolution 24- Page 3 of 4
61 CITY CONSULTANTS
Consultants shall be included in the list of designated employees and shall disclose pursuant to the broadest disclosure category ( 1, 2, 3, 7) in the code subject to the following limitation:
The City Manager may determine in writing that a particular consultant, although a " designated position," is hired to perform a range of duties that is limited in scope and thus is not required to fully comply with the disclosure requirements described in this section. Such written determination shall include a description of the consultant' sduties and, based upon that description, a statement of the extent of disclosure requirements. The City Manager' s determination is a public record and shall be retained for public inspection in the same manner and location as others under this code.
NOTE: Members of the City Council, Planning Commission, the City Manager, City Attorney, and Treasurer have filing requirements imposed by State Law rather than by local enactment.
Adopted by Resolution 24- Page 4 of 4
62 EXHIBIT B
SUMMARY
The Fair Political Practices Commission allows five ( 5) general types of interests that may result in disqualification, which are broaden into seven ( 7) detailed Disclosure Categories listed below for the City of Lathrop. These are the disqualifications applicable in 2024 Biennial Review:
Business Entity. A business entity in which the official has an investment of 2, 000 or more in which he or she is a director, officer, partner, trustee, employee, or manager.
Real Property. Real property in which the official has an interest of $2, 000 or more including leaseholds. ( However, month -to -month leases are not considered real property interests.)
Income. An individual or an entity from whom the official has received income or promised income aggregating to $ 500 or more in the previous 12 months, including the official' s
community property interest in the income of his or her spouse or registered domestic partner.
Gifts. An individual or an entity from whom the official has received gifts aggregating to $ 590 or more in the previous 12 months.
Personal Finances. The official' s personal finances including his or her expenses, income, assets, or liabilities, as well as those of his or her immediate family.
DISCLOSURE CATEGORIES
The disclosure categories listed below identify the types of investments, business entities, sources of income, or real property, that the Designated Employee must disclose for each disclosure category to which he/ she is assigned.
Category 1: All investments and business positions in, and sources of income from, business entities that do business or own real property within jurisdiction of the City, plan to do business or own real property within the jurisdiction of the City within the next year, or have done business or owned real property within the jurisdiction of the City within the past two years.
Category 2: All interests in real property, which is located in whole or in part within, or not more than two miles outside, the jurisdiction of the City. 2024 COI Code Amendment Page 1 of 2
63 EXHIBIT B
Category 3: All investments and business positions in, and sources of income from, business entities that are engaged in land development, construction, or the acquisition or sale of real property within the jurisdiction of the City, plan to engage in such activities within the jurisdiction of the City within the next year, or have engaged in such activities within the jurisdiction of the City within the past two years.
Category 4: All investments and business positions in, and sources of income from, business entities that are banking, savings and loan, or other financial institutions.
Category 5: All investments and business positions in, and sources of income from, business entities that provide services, supplies, materials, machinery, vehicles or equipment of a type purchased or leased by the City.
Category 6: All investments and business positions in, and sources of income from, business entities that provide services, supplies, materials, machinery, vehicles or equipment of a type purchased or leased by the Designated Employee' sDepartment.
Category 7: All investments and business positions in, and sources of income from, business entities subject to the regulatory, permit, or licensing authority of the Designated Employee' sDepartment, will be subject to such authority within the next year, or have been subject to such authority within the past two years. 2024 COI Code Amendment Page 2 of 2
64 Attachment B
An Overview of Conflicts of Interest
Under the Political Reform Act
Contents
May 2022
I. The Basic Prohibition 2
II. Making, Participating in Making, or Attempting to Influence a Decision 2 A. General Definitions 2
B. Exceptions 3
III. Financial Interests 4
IV. Foreseeability of Financial Effect 5
A. Explicitly Involved 5
B. Not Explicitly Involved 5
V. Materiality Standards 6
A. Business Entity Interests 6
B. Real Property Interests 7
C. Source of Income Interests 9
D. Source of Gift Interests 11
E. Interest in Personal Finances 12
VI. The Public Generally Exception 13
VII. Legally Required Participation 16
VIII. Segmentation 17
IX. Disqualification Requirements 18
Fair Political Practices Commission 1 Conflicts Overview May 2022
65 I. The Basic Prohibition
Government Code Section 87100 of the Political Reform Act (the "Act") 1 prohibits a public official at any level of state or local government from making, participating in making, or attempting to use the official' s position to influence a governmental decision in which the official knows or has reason to know the official has a financial interest.
Government Code Section 87103 provides that an official has a " financial interest" within the meaning of Section 87100 if it is reasonably foreseeable that the decision will have a material financial effect on one or more of the official' sinterests as identified and distinguishable from the decision' seffect on the public generally.
Taken together, these provisions of the Act prohibit an official from taking part in a decision if it is reasonably foreseeable that the decision would have a material financial effect on one or more of the official' sfinancial interests identified in Section 87103 distinguishable from the decision' seffect on the public generally.
II. Making, Participating in Making, or
Attempting to Influence a Decision
Regulation 18704 defines " making a decision," "participating in a decision," and " using official position to attempt to influence a decision" for purposes of the Act' sconflict of interest provisions. If an official has a disqualifying conflict of interest under Section 87100, the official is prohibited from making, participating in making, or attempting in any way to use the official' sofficial position to influence the decision.
A. General Definitions
Making a Decision: An official makes a decision if the official authorizes or directs any action, votes, appoints a person, obligates or commits the official' s agency to any
course of action, or enters into any contractual agreement on behalf of the agency.
Regulation 18704( a).)
Participating in a Decision: An official participates in a decision if the official provides information, an opinion, or a recommendation for the purpose of affecting the decision without significant intervening substantive review. (Regulation 18704( b).) Using Official Position to Attempt to Influence a Decision: An official uses an official position to influence a decision if the official contacts or appears before: ( 1) any official in the official' s
agency, or in an agency subject to the authority or budgetary control of the official' s
agency, for the purpose of affecting a decision; or (2) any official in any other government agency for the purpose of affecting a decision, and the official purports to act within the official' s
authority or on behalf of the official' s
agency in
making the contact. (Regulation 18704( c).)
Fair Political Practices Commission 2 Conflicts Overview May 2022
66 B. Exceptions
Regulation 18704( d) provides that "making, participating in, or using official position to influence a decision" do not include any of the following:
Ministerial: Actions that are solely ministerial, secretarial, or clerical. ( Regulation 18704( d)( 1).)
Appearances as a Member of the General Public: An appearance by an official as a member of the general public before an agency in the course of its prescribed governmental function if the official is appearing on matters related solely to the official' s personal interests, including interests in:
Real property owned entirely by the official, members of the official' simmediate family, or the official and members of the official' simmediate family; A business owned entirely by the official, members of the official' simmediate family, or the official and members of the official' simmediate family; or A business over which the official, members of the official' simmediate family, or the official and members of the official' simmediate family solely or jointly exercise full direction and control. (Regulation 18704( d)( 2).) Terms of Employment: Actions by an official relating to the official' s compensation or
the terms or conditions of the official' semployment or consulting contract. However, an official may not make a decision to appoint, hire, fire, promote, demote, or suspend without pay or take disciplinary action with financial sanction against the official or the official' simmediate family, or set a salary for the official or the official' simmediate family different from salaries paid to other employees of the agency in the same job classification or position. (Regulation 18704( d)( 3).) Public Speaking: Communications by an official to the general public or media.
Regulation 18704( d)( 4).)
Academic Decisions: Teaching decisions, including an instructor' sselection of books or other educational materials at the official' s own school or institution, or other similar decisions incidental to teaching; or decisions by an official who has teaching or research responsibilities at an institution of higher education relating to the official' s professional responsibilities, including applying for funds, allocating resources, and all decisions relating to the manner or methodology with which the official' s academic study or research will be conducted. ( Regulation 18704( d)( 5).) However, this exception does not apply to an official who has institution -wide administrative responsibilities as to the approval or review of academic study or research at the institution unrelated to the official' s own work. ( Ibid.)
Architectural and Engineering Documents: Drawings or submissions of an architectural, engineering, or similar nature prepared by an official for a client to submit in a proceeding before the official' s
agency if: (i) the work is performed pursuant to the
official' s
profession; and ( ii) the official does not make any contact with the agency other Fair Political Practices Commission 3 Conflicts Overview May 2022
67 than contact with agency staff concerning the process or evaluation of the documents prepared by the official. ( Regulation 18704( d)( 6)( A).) Also, an official' s
appearance before a design or architectural review committee or similar body of which the official is a member to present drawings or submissions of an architectural, engineering, or similar nature prepared for a client if: (i) sole function is to review architectural
the committee' s
designs or engineering plans and to make
recommendations to a planning commission or other agency; (ii) the committee is required by law to include architects, engineers, or persons in related professions, and the official was appointed to the body to fulfill this requirement; and ( iii) the official is a sole practitioner. ( Regulation 18704( d)( 6)( B).)
Additional Consulting Services: Recommendations by a consultant regarding additional services for which the consultant or consultant' semployer would receive additional income if the agency has already contracted with the consultant, for an agreed upon price, to make recommendations concerning services of the type offered by the consultant or the consultant' semployer, and the consultant does not have any other economic interest, other than in the firm, that would be foreseeably and materially affected by the decision. ( Regulation 18704( d)( 7).)
III. Financial Interests
The first step in determining whether an official has a disqualifying conflict of interest under the Act is identifying the official' sfinancial interests with respect to the decision at issue. Section 87103 identifies the following financial interests which may give rise to an official' sdisqualifying conflict of interest under the Act:
A business entity in which the official has a direct or indirect investment worth 2, 000 or more ( Section 87103( a)); or in which the official is a director, officer, partner, trustee, employee, or holds any position of management (Section 87103( d)).
Real property in which the official has an interest worth $ 2, 000 or more. (Section 87103( b).)
A source of income totaling $ 500 or more in value provided or promised to, or received by, the official within the 12 months prior to the time when the decision is made. ( Section 87103( c).)
A giver of a gift or gifts totaling $ 5002 or more in value provided or promised to, or received by, the official within the 12 months prior to the time when the decision is made. (Section 87103( e).)
The official' s personal finances and those of "immediate family," defined in Section 82029 as the spouse and dependent children. (Section 87103.) Fair Political Practices Commission 4 Conflicts Overview May 2022
68 IV. Foreseeability of Financial Effect
A. Explicitly Involved
A financial effect on a financial interest is presumed to be reasonably foreseeable if the financial interest is explicitly involved in the decision. ( Regulation ( 18701( a).) An official' sfinancial interest is " explicitly involved" in a decision if the interest is a " named party in, or the subject of," the decision, and an interest is the " subject of a proceeding" if the decision involves the issuance, renewal, denial, or revocation of any license, permit, other entitlement to, or contract with, the interest. 3Additionally, an official' sreal property interest is explicitly involved in any decision affecting the real property as described in Regulation 18702. 2(a)( 1) through (6), discussed further below. (Ibid.) B. Not Explicitly Involved
When an official' sfinancial interest is not explicitly involved in a decision, the financial effect of the decision is reasonably foreseeable if the effect can be recognized as a realistic possibility and more than hypothetical or theoretical. The effect need not be likely to be reasonably foreseeable. ( Regulation 18701( b).) Factors to be considered when determining if a decision' s effect on an official' s not explicitly involved interest is reasonably foreseeable include, but are not limited to, the following:
The extent to which the occurrence of the effect is contingent upon intervening events ( other than future governmental decisions by the official' s agency or an
agency subject to the budgetary control of the official' sagency). (Regulation 18701( b)( 1).)
Whether the official should anticipate a financial effect on the financial interests at issue as a potential outcome under normal circumstances when using appropriate due diligence and care. (Regulation 18701( b)( 2).) Whether the official has an interest of the type that would typically be affected by the terms of the decision. (Regulation 18701( b)( 3).)
Whether the decision is of the type that would be expected to have a financial effect on businesses and individuals similarly situated to those businesses and individuals in which the official has a financial interest. ( Ibid.) Whether a reasonable inference can be made that the financial effects of the decision on the official' sfinancial interest might compromise an official' sability to fulfill their duty to act in the best interests of the public. (Regulation 18701( b)( 4).) Whether the decision will provide or deny an opportunity, or create an advantage for one of the official' sfinancial interests. ( Regulation 18701( b)( 5).) Fair Political Practices Commission 5 Conflicts Overview May 2022
69 Whether the official has the type of financial interest that would cause a similarly situated person to weigh the advantages and disadvantages of the decision on the official' sfinancial interest in formulating a position. ( Regulation 18701( b)( 6).) V. Materiality Standards
Regulation 18702( a) provides that the next step in the analysis is to determine if the decision' sreasonably foreseeable financial effect on the official' sfinancial interest is material. If the official' sinterest is in:
A business entity, then apply the materiality standards of Regulation 18702..
Regulation 18702( a)( 1).)
A real property, then apply the materiality standards of Regulation 18702. 2.
Regulation 18702( a)( 2).)
A source of income, then apply the materiality standards of Regulation 18702. 3.
Regulation 18702( a)( 3).)
A source of a gift or gifts, then apply the materiality standards of 18702. 4.
Regulation 18702( a)( 4).)
Their personal finances or those of immediate family, then apply materiality standard of 18702. 5. (Regulation 18702( a)( 5).)
A. Business Entity Interests
Regulation 18702. sets forth the materiality standards applicable to a decision' s reasonably foreseeable financial effect on a business in which an official has an interest, and provides that the effect is material if any of the following standards is met:
The business is explicitly involved in the decision, meaning that the business is a named party in, or the subject of, the decision, including any decision in which the business:
Initiates the proceeding by filing an application, claim, appeal, or other request for action concerning the business with the official' s agency.
Regulation 18702.(a)( 1)(A).)
Offers to sell a product or service to the official' s
agency. (Regulation
18702.(a)( 1)(B).)
Bids on, or enters into, a contract with the official' s agency, or is identified as
a subcontractor on a bid or contract with the agency. (Regulation 18702.(a)( 1)( C).)
Is the named or intended manufacturer or vendor of any products to be purchased by the official' s
agency with an aggregate cost of $ 1, 000 in any 12 -
month period. ( Regulation 18702.(a)( 1)( D).)
Fair Political Practices Commission 6 Conflicts Overview May 2022
70 Applies for a permit, license, grant, tax credit, exception, variance, or other entitlement from the official' s
agency. ( Regulation 18702.(a)( 1)(E).)
Is the subject of any inspection, action, or proceeding under the regulatory authority of the official' sagency. (Regulation 18702.(a)( 1)(F).) Is subject to an action taken by the official' s
agency that is directed at the
entity. (Regulation 18702.(a)( 1)( G).)
The decision may result in an increase or decrease of the business' sannual gross revenues, or the value of its assets and liabilities, in an amount equal to or more than:
1, 000,0; or
Five percent of the business' sannual gross revenues, and the increase or decrease is $ 10, 000 or more. (Regulation 18702.(a)( 2).) The decision may cause the business to incur or avoid additional expenses or to reduce or eliminate expenses in amount equal to or more than:
250, 00; or
One percent of the business' sannual gross revenues, and the increase or decrease is at least $ 2, 500. (Regulation 18702.(a)( 3).) The official knows or has reason to know that business has an interest in real property and:
The property is a named party in, or the subject of, the decision under Regulations 18701( a) and 18702. 2(a)( 1) through ( 6); or There is clear and convincing evidence the decision would have a substantial effect on the property. (Regulation 18702.(a)( 4).)
Thus, if the decision' sreasonably foreseeable financial effect on an official' s business interest meets any of the four standards above, that effect is material, and the official is disqualified from taking part in the decision.
Small Shareholder Exception: Regulation 18702.(b) sets forth the " Small Shareholder Exception," which provides that a decision' sreasonably foreseeable financial effect on an official' sfinancial interest in a business is not material under Regulation 18702.(a)( 1) or (a)( 4)( A) if both:
The official' s
only financial interest in the business is an " investment interest" under Section 87103( a) valued at $25, 000 or less; and The
shares.
official' sinterest in the business is less than one percent of the business' s If the Small Shareholder Exception applies, the official is not disqualified.
B. Real Property Interests
Fair Political Practices Commission 7 Conflicts Overview May 2022
71 Regulation 18702. 2provides the materiality standards applicable to a decision' s reasonably foreseeable financial effect on real property in which an official has an interest as either an owner or lessee.
Explicitly Involved Real Property Interest: It is reasonably foreseeable a decision will have a material financial effect on an official' sinterest in real property any time the interest is explicitly involved in the decision. Therefore, the decision' sreasonably foreseeable effect is material in any of the types of decisions described in Regulation 18702. 2(a)( 1) to ( 6), including a decision that:
Involves the adoption of or amendment to a development plan or criteria applying to the property. (Regulation 18702. 2(a)( 1).)
Determines the property' szoning or rezoning, other than a zoning decision applicable to all properties designated in that category; annexation or de - annexation; inclusion in or exclusion from any city, county, district, or local government subdivision or other boundaries, other than elective district boundaries. ( Regulation 18702. 2(a)().)
Would impose, repeal, or modify any taxes, fees, or assessments that apply to the property. (Regulation 18702. 2(a)( 3).)
Authorizes the sale, purchase, or lease of the property. (Regulation 18702. 2(a)( 4).)
Involves the issuance, denial or revocation of a license, permit or other land use entitlement authorizing a specific use of or improvement to the property or any variance that changes the permitted use of, or restrictions placed on, the property. (Regulation 18702. 2(a)( 5).)
Involves construction of, or improvements to, streets, water, sewer, storm drainage or similar facilities, and the property will receive new or improved services that provide a benefit or detriment disproportionate to other properties receiving the services. (Regulation 18702. 2(a)( 6).)
Not Explicitly Involved Real Property Interest: A decision' sreasonably foreseeable financial effect on an official' sinterest in real property is material if it is of a type described in Regulation 18702. 2(a)( 7) through ( 8), (b) or (c), including a decision that:
Involves property located 500 feet or less from the official' s property unless there
is clear and convincing evidence that the decision will not have any measurable impact on the official' sproperty. (Regulation 18702. 2(a)( 7).) Involves property located more than 500 feet but less than 1, 000 feet from the official' s
property, and the decision would change the official' sproperty' s:
development potential; income producing potential; highest and best use; character by substantially altering traffic levels, intensity of use, parking, view, privacy, noise levels, or air quality; or market value ( Regulation 18702. 2(a)( 8)(A) through ( E).)
Fair Political Practices Commission 8 Conflicts Overview May 2022
72 Involves property located 1, 000 feet or more from the property line of the official' s property if there is clear and convincing evidence the decision would have a substantial effect on the official' sproperty. (Regulation 18702. 2(b).) Involves property leased by the official and the decision will:
Change the termination date of the lease;
Increase or decrease the potential rental value of the property; Change the official' s actual or legally allowable use of the property; or Change the official' suse and enjoyment of the property. (Regulation 18702. 2(c)( 1) through ( 4).)
Real Property Interest 1, 000 Feet or More from Property Involved in Decision: As mentioned above, Regulation 18702. 2(b) sets forth a presumption that the financial effect of a decision involving property located 1, 000 feet or more from the property line of the official' sproperty is not material. That presumption, however, may be rebutted with clear and convincing evidence the decision would have a substantial effect on the official' sreal property interest.
Exceptions for Planning Objectives or Policy: A decision' sreasonably foreseeable financial effect on an official' sreal property interest is not material, and therefore the official is not disqualified from the decision, if the decision solely concerns:
Repairs, replacement or maintenance of existing streets, water, sewer, storm drainage or similar facilities. (Regulation 18702. 2(d)( 1).) Adoption or amendment of a general plan, as defined in Regulation 18702. 2(e)(), if certain specified conditions are met. (See Regulation 18702. 2(d)().)
Common Area Exception to the Definition of Interest in Real Property: Regulation 18702. 2(e)( 4) provides that an " interest in real property," as defined in Section 82033, does not include " any common area as part of the official' sownership interest in a common interest development as defined in the Davis -Stirling Common Interest Development Act ( Civil Code Sections 4000 et seq.)"
C. Source of Income Interests
Regulation 18702. 3sets forth the materiality standards applicable to a decision' s reasonably foreseeable financial effect on a source of income to an official, and provides that the effect is material if any of the following criteria is met:
The source is explicitly involved in the decision because it is " a named party in, or the subject of, the decision," including a claimant, applicant, respondent, or contracting party. (Regulation 18702. 3(a)( 1).)
The source is an individual and any of the following applies:
Fair Political Practices Commission 9 Conflicts Overview May 2022
73 The decision may affect the individual' sincome, investments, or other assets or liabilities by $ 1, 000 or more ( excluding an interest in a business entity or real property). (Regulation 18702. 3(a)( 2)(A).)
The official knows or has reason to know that the individual has an interest in a business entity that will be financially affected under the materiality standards applicable to a business set forth in Regulation 18702..
Regulation 18702. 3(a)( 2)(B).)
The official knows or has reason to know that the individual: ( i) has a real property interest and the property is explicitly involved in the decision; or ( ii) there is clear and convincing evidence the decision would have a substantial effect on the property. ( Regulation 18702. 3(a)( 2)( C).) The source is a nonprofit organization and any of the following applies:
The decision may
annual gross receipts,
result
or
in
the
an
value
increase
of the
or
organization' s
decrease of the
assets
organization' s
or liabilities, in
an amount equal to or more than: (i) $1, 000,00; or ( ii) five percent of the organization' sannual gross receipts and the increase or decrease is equal to or greater than $ 10, 000. (Regulation 18702. 3(a)()(A).) The decision may cause the organization to incur or avoid additional expenses or to reduce or eliminate expenses in an amount equal to or more than: (i) $250, 00; or ( ii) one percent of the organization' sannual gross receipts and the change in expenses is equal to or greater than $ 2, 500.
Regulation 18702. 3(a)()(B).)
The official knows or has reason to know that the organization has a real property interest and: (i) the property is explicitly involved in the decision; (ii) there is clear and convincing evidence the decision would have a substantial effect on the property. (Regulation 18702. 3(a)()( C).) The source is a business that will be financially affected under the materiality standards applicable to a business set forth in Regulation 18702. (Regulation 18702. 3(a)( 4).)
If there is a nexus between the decision and income received by the official or official' sspouse. Otherwise referred to as the nexus test, any reasonably foreseeable financial effect on an official' ssource of income interest is material if the decision " will achieve, defeat, aid, or hinder a purpose or goal of the source and the official or the official' sspouse receive or is promised the income for achieving the purpose or goal. (Regulation 18702. 3(b).) Exception for Retail Sales: Section 87103. 5(a) provides that a retail customer of a business engaged in retail sales of good or services to the public generally is not a source of income to an official who owns a 10 -percent or greater interest in the business if: the retail customers of the business constitute a significant segment of the public generally, and the amount of income received from an individual customer is not distinguishable from the amount of income received from its other customers.
Fair Political Practices Commission 10 Conflicts Overview May 2022
74 Section 87103. 5(b) sets forth a similar retail sales exception for a jurisdiction with a population of 10, 000or less that is located within a county with 350 or fewer retail businesses.
For purposes of applying Section 87103. 5, Regulation 18702. 3(c) provides that the retail customers of a business entity constitute a significant segment of the public generally if the business is open to the public and provides goods or services to customers that comprise a broad base of persons representative of the jurisdiction.
Regulation 18702. 3(c)( 1).)
Income from an individual customer is not distinguishable from the amount of income received from other customers when the official is unable to recognize a significant monetary difference between the business provided by the individual customer and the other customers of the business. (Regulation 18702. 3(c)( 2).) An official is unable to recognize a significant monetary difference when the business:
Is of the type that sales to any one customer will not have a significant impact on the business' s annual net sales; or
Has no records that distinguish customers by amount of sales, and the official has no other information that the customer provides significantly more income to the business than an average customer. (Ibid.)
Income from a Government Entity: The materiality standards of Regulation 18702. 3 do not apply where a government entity qualifies as a source of income as defined in Section 82030, including where an official is paid by the entity as a consultant or contractor. (Regulation 18702. 3(d).) Under Regulation 18703( e)( 7), an official with an interest in such an entity is disqualified from taking part in a decision only if there is a unique effect on the official. (Ibid.)
D. Source of Gift Interests
Regulation 18702. 4provides the materiality standards applicable to a decision' s reasonably foreseeable financial effect on the source of a gift to an official, and provides that the decision' s effect is material if:
The source is explicitly involved in the decision because the source " is named or otherwise identified as the subject of the proceeding," including a claimant, applicant, respondent, or contracting party. (Regulation 18702. 4(a).) The source is an individual that will be financially affected under the materiality standard applicable to a decision' sreasonably foreseeable financial effect on an official' s personal finances set forth in Regulation 18702. 5or the official knows or has reason to know that the individual has an interest in a business or real property that will be financially affected under the materiality standards provided in Regulation 18702. or 18702. 2, respectively. (Regulation 18702. 4(b)) Fair Political Practices Commission 11 Conflicts Overview May 2022
75 The source is a nonprofit organization that will receive a measurable financial benefit or loss as a result of the decision or the official knows or has reason to know that the nonprofit has an interest in real property that will be financially affected under the materiality standards in Regulation 18702. 2. (Regulation 18702. 4(c).)
The source is a business that will be financially affected under the materiality standards in Regulation 18702.. (Regulation 18702. 4(d).) E. Interest in Personal Finances
Regulation 18702. 5(a) provides the materiality standard applicable to a decision' s reasonably foreseeable financial effect on an official' s personal finances, including those of immediate family. Also known as the personal financial effect rule, a reasonably foreseeable effect on the official' personal finances is material if the decision may result in the official or the official' simmediate family receiving a financial benefit or loss of $500 or more in any 12 -month period due to the decision.
Exceptions: Under Regulation 18702. 5(b), however, a decision' seffect on an official' s personal finances and those of immediate family is not material if the decision would:
Affect only the salary, per diem, or reimbursement for expenses the official or their immediate family member receives from a federal, state, or local government agency, unless the decision is:
To appoint ( except as specified), hire, fire, promote, demote, suspend without pay or otherwise take disciplinary action with financial sanction against the official or their immediate family; or
To set a salary for the official or a member of their immediate family which is different from salaries paid to other employees of the government agency in the same job classification or position, or when the mem of the official' s immediate family is the only person in the job classification or position.
Regulation 18702. 5(b)( 1).)
Appoint the official to be a member of any group or body created by law or formed by the official' s
agency for a special purpose. However, if the official will receive a stipend for attending meeting of the group or body aggregating $ 500 or more in any 12 -month period, the effect is material unless the appointing body posts all of the following on its website:
A list of each appointed position and its term. (Regulation 18702. 5(b)( 2)(A).) The amount of the stipend for each appointed position. ( Regulation 18702. 5(b)( 2)(B).)
The name of the official who has been appointed to the position. (Regulation 18702. 5(b)( 2)( C).)
Fair Political Practices Commission 12 Conflicts Overview May 2022
76 The name of any official who has been appointed to be an alternate for the position. (Regulation 18702. 5(b)( 2)( D).)
Appoint the official to be an officer of the governing body of which the official is already a member (such as a decision to appoint a city councilmember to be the city' s mayor.) (Regulation 18702. 5(b)( 3).)
Establish or change the benefits or retirement plan of the official or the official' s immediate family member, and the decision applies equally to all employees or retirees in the same bargaining unit or other representative group. (Regulation 18702. 5(b)( 4).)
Result in the payment of any travel expenses incurred by the official or their immediate family while attending a meeting as an authorized representative of an agency. (Regulation 18702. 5(b)().)
Permit the official' s use of any government property, including automobiles or other modes of transportation, mobile communication devices, or other agency - provided equipment for carrying out the official' sduties, including any nominal, incidental, negligible, or inconsequential personal use while on duty. (Regulation 18702. 5(b)( 6).)
Result in the official' sreceipt of any personal reward from their use of a personal charge card or participation in any other membership rewards program, so long as the reward is associated with the official' s
approved travel expenses and is no
different from the reward offered to the public. (Regulation 18702. 5(b)( 7).) Effect on Personal Finances and a Business or Real Property Interest: If a decision would have a reasonably foreseeable financial effect on a business or real property interest of an official, any related effect on the official' spersonal finances is not considered separately, and the effect is only analyzed under the respective materiality standards for business and real property interests, i.e. Regulations 18702. and 18702. 2. (Regulation 18702. 5(c).)
VI. The Public Generally Exception
Under Section 87103, if a decision' sfinancial effect on an official' sfinancial interest is indistinguishable from the decision' seffect on the public generally, the official is not disqualified from taking part in the decision. Regulation 18703 sets forth the " Public Generally Exception."
The General Rule: A decision' sfinancial effect on an official' sfinancial interest is indistinguishable from its effect on the public generally if the official establishes that a significant segment" of the public is affected and the " effect on the official' sinterest is not unique" compared to the effect on the significant segment. ( Regulation 18703( a).) A " significant segment" of the public is defined as:
Fair Political Practices Commission 13 Conflicts Overview May 2022
77 At least 25 percent of:
All businesses or nonprofit entities within the official' sjurisdiction; All real property, commercial real property, or residential real property within the official' sjurisdiction; or
All individuals within the official' sjurisdiction. (Regulation 18703( b)( 1).) At least 15 percent of residential real property within the official' sjurisdiction if the only interest the official has in the decision is the official' s primary residence.
Regulation 18703( b)( 2).)
A unique effect on an official' sfinancial interest includes a disproportionate effect on:
The development potential or use of the official' sreal property, or the income producing potential of the official' sreal property or business; An official' s business or real property resulting from the proximity of a project that is the subject of a decision;
An official' sinterests in business entities or real properties resulting from the cumulative effect of the official' smultiple interests in similar entities or properties that is substantially greater than the effect on a single interest; An official' sinterest in a business or real property resulting from the official' s substantially greater business volume or larger real property size when a decision affects all interests by the same or similar rate or percentage; A person' sincome, investments, assets or liabilities, or real property if the person is a source of income or gifts to the official; and
An official' s personal finances or those of immediate family. (Regulation 18703( c)( 1)-( 6).)
Jurisdiction" means:
The jurisdiction of the state or local government agency as defined in Section 82035;
The designated geographical area the official was elected to represent; or The area to which the official' sauthority and duties are limited if not elected.
Regulation 18703( d).)
Specific Rules for Special Circumstances: Regulation 18703( e) also provides seven Specific Rules for Special Circumstances which govern the Public Generally Exception' sapplicability in those special circumstances. Under these rules, a decision' s financial effect is deemed indistinguishable from its effect on the public generally if there is no unique effect on the official' sinterest and the official establishes:
Fair Political Practices Commission 14 Conflicts Overview May 2022
78 Public Services and Utilities: The decision sets or adjusts the amount of an assessment, tax, fee, or rate for water, utility, or other similar public services that is applied equally, proportionally, or by the same percentage to the official' s interest and other businesses, properties, or individuals subject to the assessment, tax, fee, or rate. However, an official is not permitted to take part in a decision that would impose the assessment, tax, or fee, or determine the boundaries of a property or who is subject to the assessment, tax, or fee. An official is only permitted to take part in setting or adjusting the assessment, tax, or fee amount, once other related decisions have already been made.
Regulation 18703( e)( 1).)
General Use or Licensing Fees: The decision affects the official' s personal finances as a result of an increase or decrease to a general fee or charge, such as parking rates, permits, license fees, application fees, or any general fee that applies to the entire jurisdiction. ( Regulation 18703( e)( 2).) Limited Neighborhood Effects: The decision affects residential real property limited to a specific location, encompassing more than 50, or five percent, of the residential real properties in the official' sjurisdiction, and the decision establishes, amends, or eliminates ordinances that restrict on -street parking, impose traffic controls, deter vagrancy, reduce nuisance or improve public safety, provided the body making the decision gathers sufficient evidence to support the need for the action at a specific location. (Regulation 18703( e)( 3).) Rental Properties: The decision is limited to establishing, eliminating, amending, or otherwise affecting the respective rights or liabilities of tenants and owners of residential rental property, including a decision regarding a rent control ordinance or tenant protection measures, provided all of the following criteria are met:
The decision applies to all residential rental properties within the official' s jurisdiction other than those excepted by the Costa -Hawkins Rental Housing Act (Civil Code Sections 1954. 50, et seq.). (Regulation 18703( e)( 4)( A).) The official owns three or fewer residential rental units. (Regulation 18703( e)( 4)( B).)
Only interests resulting from the official' sleasehold interest as a lessor of residential real property and the lessee or owner of the official' s primary
residence are affected by the decision. (Regulation 18703( e)( 4)( C).) Required Representative Interest: The decision is made by a board or commission and the law that establishes the board or commission requires certain appointees have a representative interest in a particular industry, trade, or profession or other identified interest, and the public official is an appointed member representing that interest. This provision applies only if the effect is on the industry, trade, or profession or other identified interest represented.
Regulation 18703( e)( 5).)
Fair Political Practices Commission 15 Conflicts Overview May 2022
79 State of Emergency: The decision is made pursuant to an official proclamation of a state of emergency when required to mitigate against the effects directly arising out of the emergency. ( Regulation 18703( e)( 6).) Governmental Entities: The decision affects a federal, state, or local government entity in which the official has an interest. (Regulation 18703( e)( 7).) VII. Legally Required Participation
Section 87101 provides that the prohibition of Section 87100 does not prevent an official from making or participating in the making of a decision to the extent the official' s participation is legally required for the action or decision to be made. However, the existence of a tied vote does not make the disqualified official' sparticipation legally required.
No Alternative Source of Decision: Regulation 18705( a) provides that an official who is financially interested in a decision may establish that the official is legally required to make or to participate in the making of a decision within the meaning of Section 87101 only if there exists no alternative source of decision consistent with the purposes and terms of the statute authorizing the decision.
Quorum" Defined: Regulation 18705( d) provides that a " quorum" is the minimum number of members required to conduct business. When the vote of a supermajority is required to adopt an item, a "quorum" is the minimum number of members needed to adopt the item.
Narrowly Construed: Regulation 18705( c) requires the regulation be narrowly construed, and specifically provides that the regulation shall not to be construed:
To permit an official who is otherwise disqualified under Section 87100 to vote to break a tie. (Regulation 18705( c)( 1).)
To allow a member of any agency who is otherwise disqualified under Section 87100 to vote if a quorum can be convened of other members of the agency who are not disqualified, whether or not those other members are actually present at the time of the disqualification. ( Regulation 18705( c)( 2).) Random Means of Selection: Regulation 18705( c)( 3) requires participation by the smallest number of officials with a conflict that are "legally required" for the decision to be made under Section 87101 and permits a " random means of selection" (e.g. drawing straws) to be used to select only the number of officials necessary to make the decision.
When an official is selected, that official is selected for the duration of the proceedings in all related matters until their participation is no longer legally required, or the need for invoking the exception no longer exists. (Regulation 18705( c)( 3).) Fair Political Practices Commission 16 Conflicts Overview May 2022
80 Public Identification of an Otherwise Disqualified Official' sFinancial Interests in a Decision: Regulation 18705( b) provides that when an official who has a financial interest in a decision is legally required to make or participate in making that decision, the official must state the existence of the potential conflict as follows:
The official must disclose the existence of the conflict of interest and describe with particularity the nature of the official' sdisqualifying financial interest or interests. This requirement is satisfied if the official discloses:
The type of financial interest or interests involved in the decision, and; Other specified information identifying the interest depending on the type of interest at issue.
The official or another officer or employee of the agency must summarize the circumstances under which the conflict may arise.
The official or another officer or employee of the agency must disclose the legal basis for the determination that there is no alternative source of decision.
Manner of Disclosure: The disclosures required by Regulation 18705( b) must be disclosed as follows:
If the decision is made during an open session of a public meeting, the disclosures must be made orally before the decision is made; If the decision is made during a closed session of a public meeting, the disclosures must be made orally during open session either before the body goes into closed session or immediately thereafter;
If the decision takes place outside of a public meeting, the disclosures must be made in writing; and
In all three circumstances immediately above, the disclosures must be made part of the public record, as specified. ( Regulation 18705( b)( 4).) VIII. Segmentation
Under the Act' s conflict of interest provisions, each governmental decision must be analyzed independently to determine if the decision will have a disqualifying effect on an official' sfinancial interest. (In re Owen ( 1976) 2 FPPC Ops. 77.) Accordingly, an agency may segment a decision in which an official has a disqualifying conflict of interest to allow the official to participate in associated decisions which would not have a disqualifying effect on the official' sinterests under Regulation 18706.
Required Conditions for Segmentation: Regulation 18706( a) provides that an agency may segment a decision in which an official is financially interested, to allow the official Fair Political Practices Commission 17 Conflicts Overview May 2022
81 to participate in associated decisions in which the official is not financially interested, provided all the following conditions are met:
The decision in which the official is financially interested can be broken down into separate decisions that are not inextricably interrelated to the decision in which the official has a disqualifying financial interest;
The decision in which the official is financially interested is segmented from the other decisions;
The decision in which the official is financially interested is considered first and a final decision is reached by the agency without the disqualified official' s participation in any way; and
Once the decision in which the official is financially interested has been made, the official' s participation in associated decisions does not result in a reopening of, or otherwise financially affect, the decision from which the official was disqualified.
Inextricably Interrelated": Regulation 18706( b) provides that decisions are inextricably interrelated" when the result of one decision will effectively determine, affirm, nullify, or alter the result of another decision.
Budget and General Plan Decisions Affecting Entire Jurisdiction: Regulation 18706( c) provides that once all separate decisions related to a budget or general plan affecting the entire jurisdiction have been finalized, the official may participate in the final vote to adopt or reject the agency' s budget or general plan.
IX. Disqualification Requirements
Section 87105 governs the recusal of a public official specified in Section 87200 from a decision from which the official has been disqualified. Subdivisions ( a)( 1)-( 3) of that section require the disqualified official to: identify the potential conflict of interest to publicly identify the official' sfinancial interest or interests at issue; recuse from voting, discussing or attempting to influence the matter; and leave the room until after the matter is concluded. Subdivision ( a)( 4) excludes members of the Legislature from these recusal requirements.
Regulation 18707 provides further direction and guidance on the recusal requirements applicable to a public official specified in Section 87200 who is disqualified from a decision relating to an agenda item noticed for consideration at a public meeting subject to open meeting laws ( i.e. the Bagley -Keene Act ( Section 11120 et seq.) or the Brown Act (Section 54950 et seq.)).
Form and Content of Public Identification: The disqualified official must publicly identify each type of financial interest, identified in Section 87103, held by the official Fair Political Practices Commission 18 Conflicts Overview May 2022
82 that gives rise to the disqualifying conflict of interest. (Regulation 18707( a)( 1).) The identification must be oral and part of the public record ( Regulation 18707( a)( 1)( B)), and provide the following information, as applicable:
For a business interest: the name of the business, a general description of its activities,
For a real
and
property
any position
interest:
held
the property' s
by the official. (
address,
Regulation
assessor' s
18707( a)( 1)( A)( i
number, or
identification that the property is the official' s personal residence. ( Regulation 18707( a)( 1)( A)( ii.)
For a source of income interest: the name of the source of income. ( Regulation 18707( a)( 1)( A)( iii).)
For a source of gift interest: the name of the source of gift. (Regulation 18707( a)( 1)( A)( iv).)
For all interests: the nature of the expense, liability, asset, or income affected.
Regulation 18707( a)( 1)( A)( v).)
Timing: The public identification required by Regulation 18707( a)( 1) must be made immediately prior to consideration of the agenda item. (Regulation 18707( a)( 2).) Partial absence from a meeting does not excuse the disqualified official' spublic identification requirement. ( Ibid.)
If the official leaves a meeting in advance of an agenda item from which the official is disqualified, the official must provide the public identification required by Regulation 18707( a)( 1) prior to leaving the meeting. ( Regulation 18707( a)( 2).) If the official first joins a meeting after consideration of the agenda item, the official must provide the public identification immediately upon joining the meeting. ( Ibid.)
Recusal and Leaving the Room: The disqualified official must recuse, leave the room after the public identification required by Regulation 18707( a)( 1), and refrain from participation in the decision. (Regulation 18707( a)( 3).) The disqualified official does not count toward achieving a quorum while the item is discussed. ( Ibid.) For an agenda item on a consent calendar ( uncontested items), the official may remain in the room during the consent calendar. ( Regulation 18707( a)( 3)( A).) If the official has a " personal interest" in the agenda item, as defined in Regulation 18704( d)( 2) and wishes to speak or appear as a member of the general public, the official may leave the dais and speak or observe from the area reserved for members of the public after making the public identification required by Regulation 18707( a)( 1) and recusing. (Regulation 18707( a)( 3)( B).) Special Rules for Closed Session: The public identification required by Regulation 18707( a)( 1) must be made orally during the open session before the body goes into Fair Political Practices Commission 19 Conflicts Overview May 2022
83 closed session and may be limited to a declaration that the official' srecusal is because of a conflict of interest under Section 87100. (Regulation 18707( a)( 4).) The declaration must be made part of the official public record. ( Ibid.) The official must not be present when the decision is considered in closed session or knowingly obtain or review a recording or any other non- public information regarding the decision. (Ibid.) Other Decisions: For a decision other than an agenda item involving a public official specified in Section 87200 ( governed by Regulation 18707( a)), Regulation 18707( b) provides the following:
If the official determines not to act because of a financial interest, the official' s determination may be accompanied by an oral or written disclosure of the interest.
The official' s
presence will not be counted toward achieving a quorum.
During a closed meeting of the agency, a disqualified official must not be present when the decision is considered, or knowingly obtain or review a recording or any
other nonpublic information regarding the decision.
An agency may adopt a local rule requiring the official to step down from the dais or leave the chambers.
Confidential Information: Regulation 18707( c) expressly provides that nothing in Regulation 18707 is intended to cause any disclosure that would reveal the confidences of a closed session or any other privileged information contemplated by law, including privileged information under Regulation 18740.
1 The Political Reform Act is contained in Government Code Sections 81000 through 91014. All statutory references are to the Government Code, unless otherwise indicated. The regulations of the Fair Political Practices Commission ( the "Commission") are contained in Sections 18110 through 18997 of Title 2 of the California Code of Regulations. All regulatory references are to Title 2, Division 6 of the California Code of Regulations, unless otherwise indicated.
2 We note that the annual gift limit is adjusted biennially. The current gift limit is prescribed in Regulation 18940. 2. The adjusted annual gift limit amount in effect for the period January 1, 2021, to December 31, 2022, is $ 520.
3 For an official' sinterest in a business entity or real property, Regulation 18702.(a) and Regulation 18702. 2(a)( 1)-( 6), provide additional guidance for determining if the interest is explicitly involved.
Fair Political Practices Commission 20 Conflicts Overview May 2022
84 Docusign Envelope ID: 1CA2AABE- A20- 4B32- 9051- 0A7E4994F63A ITEM 4. 7
CITY MANAGER' SREPORT
SEPTEMBER 9, 2024 CITY COUNCIL REGULAR MEETING
ITEM: APPROVE CONTRACT AMENDMENTS FOR THE
CITY MANAGER, CITY ATTORNEY & POLICE CHIEF
RECOMMENDATION: Adopt Resolution Approving Amendment Number Six to the City Manager Employment Agreement,
Amendment Number Four to the City Attorney
Employment Agreement and Amendment Number
One to the Police Chief Employment Agreement
BACKGROUND:
The City Council reviews the performance of the two Council appointed officials, City Manager and City Attorney, annually. This year the review incorporated Police Chief Stephen Sealy as a result of the Council' saction in November 2023 to appoint Stephen Sealy to the Police Chief position.
At the August 12, 2024, City Council meeting, the Council completed the performance evaluations with each of the three Council appointed officials. The attached Resolution authorizes a three percent ( 3%) salary increase for each of the officials effective July 6, 2024, and resets the review period of the Police Chief.
Tonight' s action formalizes the approval of the City Council action on August 12, 2024.
FISCAL IMPACT:
The budget amendment required covers the salary increase and CaIPERS benefits / overhead costs for each employee. Budget increase in FY 24-5 is as follows:
City Manager - Increase Expenditures
1010- 1120- 410- XX00 $ 9, 707
City Attorney - Increase Expenditures
1010- 1310- 410- XX00 $ 9, 107
Police Chief - Increase Expenditures
1010- 4050- 410- XX00 $ 8, 777
ATTACHMENTS:
A. Resolution
B. Amendment 6 for City Manager Stephen Salvatore
C. Employment agreement packet for City Manager Stephen Salvatore D. Amendment 4 for City Attorney Salvador Navarrete
E. Employment agreement packet for City Attorney Salvador Navarrete F. Amendment 1 for Police Chief Stephen Sealy
G. Employment agreement packet for Police Chief Stephen Sealy 85 Docusign Envelope ID: 1CA2AABE- A20- 4B32- 9051- 0A7E4994F63A CITY MANAGER' S REPORT PAGE 2
SEPTEMBER 9, 2024 CITY COUNCIL MEETING
CONTRACT AMENDMENTS FOR CITY MANAGER, CITY ATTORNEY & POLICE CHIEF
APPROVALS:
Signed by:
M41. na, Scoff
30OCR1rF1 SRFAXI
9/4/ 2024
Marcie Scott Date
Human Resources Consultant
Approved electronically/
Signature in Resolution
Michael G. Colantuono Date
Special Counsel
86 Docusign Envelope ID: 0C2CBAB4- 7D79- 4570- 6210-46525B34445 RESOLUTION NO. 24-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LATHROP
APPROVING AMENDMENT NUMBER SIX TO THE CITY MANAGER
EMPLOYMENT AGREEMENT, AMENDMENT NUMBER FOUR TO THE CITY
ATTORNEY EMPLOYMENT AGREEMENT AND AMENDMENT NUMBER ONE TO
THE POLICE CHIEF EMPLOYMENT AGREEMENT
WHEREAS, the City Council reviews the performance of the two Council appointed officials, City Manager and City Attorney each year in July pursuant to their written procedures; and
WHEREAS, the Police Chief was appointed as Interim Chief and later Police Chief through Council action November 13, 2023, and through tonight' s action will align with the annual July performance review process; and WHEREAS, at the August 12, 2024, regular City Council meeting, the parties met in closed session for their performance discussions as required; and WHEREAS, the City Council completed the annual performance evaluations for the City Manager, City Attorney and Police Chief on August 12, 2024, and gave direction for the preparation of amendments to each official' s employment contract; and
WHEREAS, tonight' s action implements the City Council direction given on August 12, 2024; and
WHEREAS, Amendments to the Employment Contracts for City Manager, City Attorney and Police Chief have been prepared in accordance with the direction by a majority of the City Council.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Lathrop hereby approves Amendment Number Six ( 6) to the City Manager Employment Agreement, Amendment Number Four ( 4) to the City Attorney Employment Agreement and Amendment Number One ( 1) to the Police Chief Employment Agreement.
BE IT FURTHER RESOLVED, that the City Council of the City of Lathrop also hereby approves the following FY 24-5 budget amendment required to covers the salary increase and CaIPERS benefits / overhead costs for each employee, as follows:
City Manager - Increase Expenditures
1010- 1120- 410- XX00
City Attorney - Increase Expenditures
1010- 1310- 410- XX00
Police Chief - Increase Expenditures
1010- 4050- 410- XX00
9, 707
9, 107
8, 777
373006. 1 1 Resolution No. 24-
87 Docusign Envelope ID: 0C2CBAB4- 7D79- 4570- B210- 646525B34445 The foregoing resolution was passed and adopted this 9th day of September, 2024, by the following vote of the City Council, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
Sonny Dhaliwal, Mayor
ATTEST: APPROVED AS TO FORM:
Signed by;
M. id u l, G. Golaun# uoltio, siva (,Durst(,
Teresa Vargas, City Clerk Mlcnaet rolantuono, Special Counsel 373006. 1 2 Resolution No. 24-
88 Docusign Envelope ID: EC109194- 0O3E- 4652- 8EDA- 4A1C43429B98 Attachment B
Amendment Number Six to Employment Agreement Between the City of Lathrop and Stephen J. Salvatore, City Manager
September 9, 2024
The original Employment Agreement between the City of Lathrop and Stephen J. Salvatore, attached hereto and incorporated herein as Exhibit " A", was entered into between the parties for services of City Manager on or about September 17, 2012.
On or about August 17, 2015, the City Council unanimously agreed to renew and extend the Employment Agreement ( Amendment Number One) attached and hereto incorporated herein as Exhibit " B".
On or about November 19, 2018 the City Council approved Amendment Number Two, attached and incorporated herein as Exhibit " C".
On or about August 8, 2022 the City Council approved Amendment Number Three, attached and incorporated herein as Exhibit " 0".
On or about August 14, 2023 the City Council approved Amendment Number Four, attached and incorporated herein as Exhibit " E".
On or about December 11, 2023 the City Council approved Amendment Number Five, attached and incorporated herein as Exhibit " F".
The Council hereby approves a merit increase of 3% to base salary effective July 6, 2024.
Unless specifically stated above, no other changes to the original agreement ( or Amendments) are intended by this Amendment.
EMPLOYEE CITY OF LATHROP
By: By:
Stephen J. Salvatore Sonny Dhaliwal, Mayor
Date: Date:
APPROVED AS TO FORM:
CDocuSigned
by:
hum a colvyroliket
L U F UUt3 lb 11 Ut34AA...
Michael G. Colantuono, Special Counsel
ATTEST:
Teresa Vargas, City Clerk/ Government Services Director 1 89
Docusign Envelope ID: EC109194- 0O3E- 4652- 8EDA- 4A1C43429B98 Attachments:
Exhibit "A" — Employment Agreement for Stephen J. Salvatore effective September 17, 2012 Exhibit " B" — Amendment Number One to Employment Agreement dated August 17, 2015 Exhibit " C" — Amendment Number Two to Employment Agreement dated November 19, 2018 Exhibit " D" — Amendment Number Three to Employment Agreement dated August 8, 2022 Exhibit " E" — Amendment Number Four to Employment Agreement dated August 14, 2023 Exhibit " F" — Amendment Number Five to Employment Agreement dated December 11, 2023 90 Attachment C
EMPLOYMENT AGREEMENT
THIS EMPLOYMENT AGREEMENT (" Contract") is made and entered into this 17 day of September, 2012, by and between the City of Lathrop, California, a general law city organized under the laws of the State of Califomia, hereinafter called " Employer," and Stephen J.
Salvatore, an individual, hereinafter called " Employee," and is effective as of September 17, 2012 (" Effective Date").
The parties agree as follows:
SECTION 1. DUTIES.
Employer hereby employs Employee as City Manager to perform the functions and duties specified in the laws of the State of California, the Municipal Code of the City of Lathrop, and the Ordinances and Resolutions of the City of Lathrop, and to perform such other legally permissible and proper duties and functions as the City Council shall from time to time assign.
SECTION 2. TERM.
A. The term of this Contract shall initially be for three ( 3) years, commencing as of the Effective Date, and shall be automatically renewed and extended for additional three ( 3) year periods at the end of each three year period, unless either party shall provide written notice of non -renewal at least ninety ( 90) days prior to the end of the period in which notice is given.
B. Nothing in this Contract shall prevent, limit, or otherwise interfere with the right of Employee to resign as City Manager or as an employee of the City at any time for any reason.
C. Employee shall remain in the exclusive employ of Employer, and shall neither accept other employment nor become employed by any other employer except upon written approval of Employer.
D. The term " employed" shall not be construed to include occasional teaching, writing, speaking, or consulting performed during Employee' stime off.
E. Employee' sinitial date of hire was January 1, 2008, but this Agreement is effective as the Effective Date specified above.
SECTION 3. SALARY.
Employer agrees to pay Employee, commencing with the Effective Date for his duties, the base annual salary of one hundred and seventy one thousand one hundred thirty one dollars
91 171,31) payable in installments at the same time and in the same manner as other Employees of the Employer are paid.
On the one ( 1) year anniversary of the Effective Date, the City Council shall conduct an annual performance evaluation. This evaluation shall be completed as a joint effort between Employee and Employer. If desired, an outside facilitator, to be mutually agreed upon by Employer and Employee, and at Employer' s
sole cost, may be utilized. On the subsequent anniversaries, Employer may grant merit increases to the base annual salary and provide other benefits to Employee under this Contract at their discretion.
SECTION 4. HOURS OF WORK.
It is recognized that Employee must devote a great deal of time outside normal office hours to business of Employer. To that end, Employee will be granted management leave at a rate of four 4) weeks of management leave per calendar year. Management leave is fully credited on January 1st of each year.
SECTION 5. AUTOMOBILE ALLOWANCE.
Employer shall receive an a automobile allowance of $450. 00 per month for the general business use of his personal vehicle; however, Employer shall also reimburse Employee at the IRS standard mileage rate for any business use of his personal vehicle for any single business trip totaling more than 100 miles.
SECTION 6. TERMINATION.
This Contract shall terminate upon the occurrence of any ofthe following events:
A. The death ofEmployee.
B. The dissolution or bankruptcy of Employer.
C. The disability of Employee, as defined herein.
D. The majority of the City Council of Employer votes to terminate the Employee at a duly authorized meeting. Except for non -renewal of contract pursuant to 2A, the Employer however shall not terminate Employee within a " cooling off' period of ninety ( 90) days either before or after an election for which a City Council Member is elected.
E. If the Employer, citizens or legislature act or acts to amend any provision of applicable law that substantially changes the role, powers, duties, authority, or responsibilities of the Employee, the Employee shall have the right to declare that such amendments constitute termination.
92 F. If the Employer reduces the base salary, compensation or any other financial benefit of the Employee, unless any such reduction is pursuant to a City wide furlough program, such action shall constitute a breach ofthis Contract and will be regarded as termination.
G. If the Employee resigns following an offer to accept resignation, by majority of the City Council of Employer, then the Employee may declare a termination as of the date of the requested resignation.
H. Breach of contract declared by either party with a thirty (30) day cure period for either Employee or Employer to be provided. Written notice of a breach of contract shall be provided.
I. Conviction of Employee of any public offense that is a felony, and/ orinvolves moral
turpitude, and / or the punishment for which includes a prohibition of holding public employment.
SECTION 7. CONFIDENTIALITY.
Unless the Employee expressly requests otherwise in writing, the evaluation of the Employee during his service as City Manager shall at all times be conducted in closed session of the City Council and shall be considered confidential to the full extent permitted by law. Nothing herein shall prohibit the Employer or the Employee from sharing the content of Employee' sevaluation with their respective legal counsel.
SECTION 8. SEVERANCE P AY.
If this Contract is terminated pursuant to Section 6, Paragraph B, D, E, F, G or City breach of Contract, Employer shall pay severance to Employee in the amount of six ( 6) months' salary.
Instead of six of severance pay in accordance with this Section, Employee may elect to treat the non -renewal of the Contract ( as described in herein and in Section 2) as a termination that entitles him to three ( 3) months' severance pay in addition to regular pay during the 90 day notice period of non -renewal referenced in Section 2A.
If this contract is terminated for any reason specified herein, Employee shall be paid for all accrued and unused sick leave, vacation time, paid holidays; and the value of all benefits including employer' scontribution to PERS, Health Insurance allowance, and car allowance.
Severance will be paid in one payment within 30 days of termination.
SECTION 9. NOTICE TO RESIGN
Employee may terminate this Contract by providing written notice to the City at least thirty ( 30) days prior to the effective date of resignation. The Employer shall have no further obligation to provide payments and benefits to Employee for his service as City Manager after the effective date of the resignation except for all accrued and unused management leave, sick leave and vacation time. The City requests that Employee provide six ( 6) to twelve ( 12) months advance notice in the event that he determines to retire from service.
93 SECTION 10. INDEMNIFICATION.
Employer shall defend, save harmless and indemnify Employee in accordance with Division 3. 6 of the California Government Code, commencing with section 810.
SECTION 11. BONDING.
Employer shall bear the full cost of any fidelity or other bonds required of the Employee under any law or ordinance.
SECTION 12. DISABILITY, ADJUSTMENTS, HEALTH AND LIFE
INSURANCE. COST -OF -LIVING, VACATION AND SICK LEAVE.
Unless otherwise specifically provided herein, all provisions of the Municipal Code and regulations and rules of Employer relating to vacation and sick leave, retirement system contributions, holidays and other fringe benefits and working conditions as they now exist or hereafter may be amended also shall apply to Employee as they would to other unrepresented employees of the Employer. An annual cost of living increase adjustment shall be applied to the base annual salary going forward to Employee as established for all other non -represented employees. Additionally, Employee will accrue vacation and sick leave at a rate as outlined in the City' s
Administrative Policies Manual based on his initial hire date.
SECTION 13. RETIREMENT.
Employer shall pay Employee' scontribution to the Public Employees Retirement System in accordance with adopted policies ofEmployer.
SECTION 14. NOTICES.
Notices pursuant to this Contract shall be in writing given by deposit in the custody of the United States Postal Service, postage prepaid, addressed as follows:
1) Employer
2) Employee
Mayor, City ofLathrop, 390 Towne Centre Drive, Lathrop, CA At his address as reflected in his personnel records of the City.
Alternatively, notices required pursuant to this Contract may be personally served in the same manner as is applicable to civil judicial process. Notice shall be deemed given as of the date of personal service or as of the date of deposit of such written notice in the course of transmission in the United States Postal Service.
SECTION 15. GENERAL PROVISIONS.
A. The text herein shall constitute the entire Contract between the parties.
94 B. If any provision, or any portion thereof, contained in this Contract is held unconstitutional, invalid or unenforceable, the remainder of this Contract, or portion thereof, shall be deemed severable, shall not be affected and shall remain in full force and effect.
IN WITNESS WHEREOF, the City of Lathrop has caused this Contract to be signed and executed in its behalf by its Mayor and duly attested by its City Clerk, and the Employee has signed and executed this Contract, both in duplicate, the day and year first above written.
EMPLOYEE
Bv:
Date:
en J. Salvatore
q / 1
ilZ
APPROVED AS TO FO :
Salvador Navarrete, City Attorney
ATTEST:
Mitzi rtiz, Clerk
CITY OF LATHOP
J Chak
Date: q Al i \e).
95 Amendment Number One to Employment Agreement between The City of Lathrop and Stephen J. Salvatore
August 17, 2015
4 The original Employment Agreement between the City of Lathrop and Stephen J. Salvatore, attached hereto and incorporated herein as Exhibit " A", was entered into between the parties for the services of City Manager on or about September 17, 2012.
The City Council has met and unanimously agreed to renew and extend this Employment Agreement pursuant to the conditions as described in Section 2 of the Employment Agreement.
IN WITNESS WHEREOF the City of Lathrop has caused this Amendment No. 1 to be signed and executed in its behalf by its Mayor and duly attested by its City Clerk, and the employee has signed and executed this Amendment both in duplicate.
EMPLOYEE CITY OF LATHROP
B
ephen J. Salvatore Sonny Dhaliwai, Mayor
Date: A• 11., 5
APPROVED AS TO FORM:
Salvador Navarrete, City Attorney
ATTEST:
Ill4eresa- 61dVargas, City
Date:
Attachment: Exhibit A - Employment Agreement for Stephen J. Salvatore effective September 17, 2012 1 96
Amendment Number Two to Employment Agreement Between the City of Lathrop and Stephen J. Salvatore
November 19, 2018
The original Employment Agreement between the City of Lathrop and Stephen J. Salvatore, attached hereto and incorporated herein as Exhibit "A", was entered into between he parties for services of City Manager on or about September 17, 2012.
On or about August 17, 2015, the City council unanimously agreed to renew and extend the Employment Agreement pursuant to the conditions as described in Section 2 ofthe Employment Agreement, attached hereto and incorporated herein as Exhibit "B". In addition, the Employment Agreement automatically renewed for an additional 3 years in September 2018.
The City Crnn' ilhas met and with a vote of4-0. with Councilmember Dresser absent, approves the following amendment to the Employment Agreement, effective November 19, 2018:
1. Increase current base annual salary by 5%;
2. Up to forty (40) hours of sick leave can be cashed out annually; and
3. Employer will contribute $ 2, 179 per month towards the Employee' shealth, dental and vision insurance benefits, and any such increases to benefits provided to other management employees.
Unless specifically stated above. no other changes to the original agreement ( or Amendment One) are intended by this Agreement.
EMPLOYEE -
J. Salvatore
Date: N• JNS
APPROVED AS TO FORM:
Salvador Navan eta, City Attorney
ATTEST:
1 / tywri6--
CITY OF LATHROP
By:
y Dhaliwal, Mayor
Date: / 1/9/ Pr
Attachments:
Exhibit "A" — Employment Agreement for Stephen J. Salvatore, effective September 17, 2012 Exhibit "B" — Amendment Number One to Employment Agreement dated August 17, 2015 97 Amendment Number Three to Employment Agreement Between the City of Lathrop and Stephen J. Salvatore
August 8, 2022
The original Employment Agreement between the City of Lathrop and Stephen J. Salvatore, attached hereto and incorporated herein as Exhibit "A", was entered into between the parties for services of City Manager on or about September 17, 2012.
On or about August 17, 2015, the City Council unanimously agreed to renew and extend the Employment Agreement ( Amendment Number One) attached and hereto incorporated herein as Exhibit " B".
On or about November 19, 2018 the City Council approved Amendment Number Two, attached and incorporated herein as Exhibit " C".
The City Council hereby approves a performance -based increase in the City Manager' scurrent base salary of6%, effective July 11, 2022.
Unless specifically stated above, no other changes to the original agreement ( orAmendments) are intended by this Amendment.
EMPLOYEE
By:
Stephen J. Salvatore
Date: S/ 0/ ZZ
APPROVED AS TO FORM:
Michael G. Colantuono
Special Counsel
ATTEST:
eresa Vargas, City Cler / Government Services Director
Sonny DDhaliwal, Mayor
Date:
Attachments:
Exhibit "A" — Employment Agreement for Stephen J. Salvatore effective September 17, 2012 Exhibit " B" — Amendment Number One to Employment Agreement dated August 17, 2015 Exhibit " C" — Amendment Number Two to Employment Agreement dated November 19, 2018 98 Amendment Number Four to Employment Agreement Between the City of Lathrop and Stephen J. Salvatore
August 14, 2023
The original Employment Agreement between the City of Lathrop and Stephen J. Salvatore, attached and incorporated herein as Exhibit " A," was entered into between the parties for services of City Manager on or about September 17, 2012.
On or about August 17, 2015, the City Council approved Amendment Number One to the Employment Agreement, which is attached and incorporated herein as Exhibit " B." On or about November 19, 2018, the City Council approved Amendment Number Two, which is attached and incorporated herein as Exhibit " C."
On or about August 8, 2022, the City Council approved Amendment Number Three, which is attached and incorporated herein as Exhibit " D."
The City Council hereby approves an amendment to the first paragraph of Section 8 of the Employment Agreement to read as follows:
If this Contract is terminated pursuant to Section 6, Paragraph B, D, E, F, G, or City breach of Contract, Employer shall pay severance to Employee in the amount of twelve (12) months of salary. Instead of twelve months of severance pay in accordance with this Section, Employee may elect to treat the non - renewal of the Contract ( as described in Section 2) as a termination that entitles him to nine ( 9) months of severance pay in addition to regular pay during the 90 day notice period of non- renewal referenced in Section 2A. This provision shall be limited by the requirements of Government Code sections 53260 and 53621.
Unless specifically stated above, no other changes to the original agreement ( or Amendments) are intended by this Amendment.
EMPLOYEE
Date: $• 1c4 z3
APPRQV1D AS TO FORM:
Counsel
CITY
By:
Date: g
Vice
99 A EST:
resa Vargas, City Clerk/ Go fnent Services Manager
Attachments:
Exhibit " A" — Employment Agreement for Stephen J. Salvatore effective September 17, 2012 Exhibit " 8" — Amendment Number One to Employment Agreement dated August 17, 2015 Exhibit " C" — Amendment Number Two to Employment Agreement dated November 19, 2018 Exhibit " D" — Amendment Number Three to Employment Agreement dated August 8, 2022 100
Amendment Number Five to Employment Agreement between
The City of Lathrop and Stephen J. Salvatore
December 11, 2023
The original Employment Agreement between the City of Lathrop and Stephen J. Salvatore, attached hereto and incorporated herein as Exhibit " A", was entered into between the parties for the services of City Manager on or about September 17, 2012.
On or about August 17, 2015, the City Council approved Amendment Number One to the Employment Agreement, which is attached and incorporated herein as Exhibit " B." On or about November 19, 2018, the City Council approved Amendment Number Two, which is attached and incorporated herein as Exhibit " C."
On or about August 8, 2022, the City Council approved Amendment Number Three, which is attached and incorporated herein as Exhibit" D."
On or about August 14, 2023, the City Council approved Amendment Number Four, which is attached and incorporated herein as Exhibit" E."
The City Council hereby approves an amendment to the second paragraph of Section 8 of the Employment Agreement to read as underlined below:
If this contract is terminated for any reason specified herein, Employee shall be paid for all accrued and unused sick leave, vacation time, paid holidays; and the value of all benefits including employer' scontribution to PERS, Health Insurance allowance, and car allowance.
Severance will be paid in one payment within 30 days of termination. Employee shall cash out 14 hours per pay period of accrued unused sick leave, so long as the accrued sick leave balance remains at a minimum of 160 hours. Increments of less than 14 hours above 160 hours of accrued sick leave will not be cashed out.
Unless specifically stated above, no other changes to the original agreement ( or Amendments) are intended by this Amendment.
EMPLOYEE CITY OF THROP
Date:
ephen J. Salvatore
1411013
Sonny Dhaliwal, Mayor
Date: / 41 /a3
101
APPROVED AS TO FO M:
Salvador Navarrete, City Attorney
ATTEST:
J
eresa Vargas, City CI
Attachments:
Exhibit " A"— Employment Agreement for Stephen J. Salvatore effective September 17, 2012 Exhibit " B"— Amendment Number One to Employment Agreement dated August 17, 2015 Exhibit " C"— Amendment Number Two to Employment Agreement dated November 19, 2018 Exhibit " D"— Amendment Number Three to Employment Agreement dated August 8, 2022 Exhibit " E"— Amendment Number Four to Employment Agreement dated August 14, 2023 102
Docusign Envelope ID: EC109194- 0O3E- 4652- 8EDA- 4A1C43429B98 Attachment D Amendment Number Four to Employment Agreement Between the City of Lathrop and Salvador V. Navarrete, City Attorney September 9, 2024
The original Employment Agreement between the City of Lathrop and Salvador V. Navarrete, attached hereto and incorporated herein as Exhibit " A", was entered into between the parties for services of City Attorney on or about January 14, 2008.
On or about November 19, 2018 the City Council unanimously approved Amendment Number One, attached herein as Exhibit " B".
On or about August 8, 2022 the City Council approved Amendment Number Two, attached herein as Exhibit " C".
On or about August 14, 2023 the City Council approved Amendment Number Three, attached herein as Exhibit " D".
The City Council hereby approves a merit increase of 3% to base salary effective July 6, 2024.
Unless specifically stated above, no other changes to the original agreement ( or Amendments) are intended by this Amendment.
EMPLOYEE CITY OF LATHROP
By: By:
Salvador V. Navarrete Sonny Dhaliwal, Mayor
Date: Date:
APPROVED AS TO FORM:
DocuSi9ned by:
2DFDUf3/ b11084AA...
Michael G. Colantuono, Special Counsel
ATTEST:
Teresa Vargas, City Clerk/ Government Services Director 103
Docusign Envelope ID: EC109194- 0O3E- 4652- 8EDA- 4A1C43429B98 Attachments:
Exhibit " A" — Employment Agreement for Salvador V. Navarrete effective January 14, 2008 Exhibit " B" — Amendment Number One to Employment Agreement dated November 19, 2018 Exhibit " C" — Amendment Number Two to Employment Agreement dated August 8, 2022 Exhibit " D" — Amendment Number Three to Employment Agreement dated August 14, 2023 104
G
Attachment E
EMPLOYMENT CONTRACT
THIS EMPLOYMENT CONTRACT (" Contract") is made and entered into this 1 lth day of December, 2007, by and between the City of Lathrop, California, a general law city organized under the laws of the State of California, hereinafter called "Employer," and Salvador V. Navarrete, an individual, hereinafter called Employee," and is effective as of January 14, 2008 (" Effective Date").
The parties agree as follows:
SECTION 1. DUTIES.
A. General.
Employer hereby employs Employee as City Attorney to perform the functions and duties specified in the laws ofthe State ofCalifornia, the Municipal Code of the City ofLathrop, and the Ordinances and Resolutions of the City ofLathrop, and to perform such other legally permissible and proper duties and functions as the City Council shall from time to time assign.
B. Description ofDuties.
In amplification of Section 1A. of the Contract, Employee shall serve as general counsel and chief legal advisor to employer, and perform all legal duties for Employer, except i) When, in the opinion of Employer, it would be more appropriate to hire outside specialist counsel. In such event, Employee shall assist Employer in selecting such outside specialist counsel. Such outside specialist counsel may serve in lieu ofEmployee on any particular matter, or may assist Employee; or
ii) When counsel for Employer is otherwise provided, as in the case of counsel provided by insurers in connection with various insurance policies held by Employer, or provided by the Risk Management Authority of which Employer is a member; or iii) When a conflict exists such that Employee is prohibited by law or rules of professional conduct from representing or advising Employer.
C. In further amplification of Section 1.A. ofthis contract, Employee shall, unless excused by Employer, attend all meetings of the City Council and the Planning Commission of the City ofLathrop, and meetings of such other Boards or Commissions of the City as the City Council may, from time to time, direct.
D. In further amplification of Section 1. A of this Contract, it is recognized and agreed that Employee reports to the City Council of Employer, and not to the City Manager of Employer, but Employee will co- ordinate with the City Manager ofEmployer to ensure the legal needs of Employer are met. Employee shall operationally be considered a department head with all the rights, duties and obligations thereof.
105
SECTION 2. TERM
A. The term of this Contract shall initially be for five (5) years, commencing as of the Effective Date, and shall be automatically renewed and extended for an additional five (5) year period at the end of each renewal and extension period, unless either party shall provide written notice of non -renewal at least ninety (90) days prior to the end ofthe period in which notice is given. In the event Employer declares its intention not to renew and extend this Contract, then Employee, while continuing to perform all of his duties hereunder, may undertake the pursuit of new employment opportunities.
B. Nothing in this Contract shall prevent, limit, or otherwise interfere with the right of Employee to resign at any time for any reason.
C. Notwithstanding any other provision in this Section 2, this Contract may be earlier terminated in accordance with Section 7 ofthis Contract D. Employee shall remain in the exclusive employ of Employer, and shall neither accept other employment nor become employed by any other employer except upon written approval ofEmployer.
E. The term " employed" shall not be construed to include occasional teaching, writing, speaking, or consulting performed during Employee' stime off.
SECTION 3. DISABILITY.
IfEmployee shall, for whatever reason, become incapable of performing any of the essential functions of City Attorney, even with reasonable accommodation by Employer, either
1. Permanently, or
2. For a period exceeding the period of leave available to the Employee under the Family Medical Leave Act or the California Family Rights Act, or accrued sick leave, whichever is longer, then Employee shall be deemed to have suffered a disability. Employer and Employee agree that the time period specified in this paragraph 2 is a reasonable accommodation by Employer, and that granting longer time would be an undue hardship on Employee.
SECTION 4. SALARY.
Employer agrees to pay Employee, effective January 14, 2008, for his duties, a base annual salary of one hundred fifty thousand dollars ($ 150, 00) payable in installments at the same time and in the same manner as other Employees ofthe Employer are paid.
The City Council shall conduct an annual performance evaluation within fifteen ( 15) days ofJanuary 14th each year commencing in 2009. This evaluation shall be completed as a joint effort between Employee and Employer. If desired, an outside facilitator, to be mutually agreed upon by Employer and Employee, and at Employer' ssole cost, may be utilized. Upon satisfactory completion of this annual performance review, Employer may grant merit increases to the base salary and other benefits to provide to Employee under this Contract. Any such modifications shall be in writing and signed by Employee and Employer.
SECTION 5. HOURS OF WORK.
It is recognized that Employee must devote a great deal of time outside normal office hours to business of 106
Employer. To that end, Employee will be granted fifteen ( 15) days of management leave per calendar year.
Management leave is fully credited on January 1s' of each year and cannot be cashed out or rolled over.
SECTION 6. AUTOMOBILE ALLOWANCE.
Employer shall receive an automobile allowance of $450. 00 per month for the general business use of his personal vehicle; however, Employer shall also reimburse Employee at the IRS standard mileage rate for any business use of his personal vehicle for any single business trip totaling more than 100 miles.
SECTION 7. TERMINATION
This Contract shall terminate upon the occurrence of any of the following events:
A. The death ofEmployee.
B. The dissolution or bankruptcy of Employer.
C. The disability ofEmployee, as defined in Section 3 of this Contract.
D. The majority of the City Council of Employer votes to terminate the Employee at a duly authorized meeting.
E. If the Employer, citizens or legislature act or acts to amend any provision of applicable law that substantially changes the role, powers, duties, authority, or responsibilities of the Employee, the Employee shall have the right to declare that such amendments constitute termination.
F. Ifthe Employer reduces the base salary, compensation or any other financial benefit of the Employee, unless it is applied in no greater percentage than the average reduction of all department heads, such action shall constitute a breach of this Contract and will be regarded as termination.
G. If the Employee resigns following an offer to accept resignation, or a suggestion that Employee resign, whether formal or informal, by any member of the City Council ofEmployer acting as representative of the majority of the City Council, then the Employee may declare a termination as of the date of the suggestion.
H. Breach of contract declared by either party with a thirty (30) day cure period for either Employee or Employer to be provided. Written notice of a breach of contract shall be provided.
I. Conviction ofEmployee of any public offense that is a felony, and/ orinvolves moral
turpitude, and/ or the punishment for which includes a prohibition of holding public employment.
SECTION 8. CONFIDENTIALITY
A. Unless the Employee expressly requests otherwise in writing, the evaluation of the Employee shall at all times be conducted in closed session of the City Council and shall be considered confidential to the maximum and full extent permitted by law. Nothing herein shall prohibit the Employer or the Employee from sharing the content of the City Attorney' sevaluation with their respective legal counsel.
B. In the event oftermination or resignation, the Employer and Employee agree not to make comments or statements about each other and shall respond to inquiries by only confirming that such termination or resignation occurred. In addition, the Employer and Employee agree not to discuss the circumstances surrounding employment and termination with any person other than their respective legal counsel, including but not limited to members of the media, public, and City staff. 107
SECTION 9. SEVERANCE PAY
Ifthis Contract is terminated because of the reasons specified in Section 7. C, 7. D, 7. E, 7. F, 7. G, or an uncured breach by Employer pursuant to 7.H, Employer shall pay severance pay to Employee up to a maximum of nine ( 9) months' salary. Employee may elect to treat the non -renewal ofthe Contract ( as described in Section
2.A) as a termination that entitles him to severance pay in accordance with this Section. A severance bank of six 6) months pay is granted on the 61'` day after the Effective Date of this Contract. Employee thereafter shall earn one ( 1) additional month of severance per year of service, not to exceed a combined total of nine ( 9) months severance.
If Employee is terminated by the Employer within the three (3) months preceding or following a General Election where one or more City Council seats are contested on the ballot of such election (the election cool -off period"), then Employee will be granted an additional three (3) months severance salary only — no payout on additional benefits or leave accruals) to the severance bank currently earned.
Ifthis contracted is terminated for any reason specified in Section 7 within the first 60 days of employment, Employee will receive three ( 3) months of severance pay.
Ifthis contract is terminated for any reason specified in Section 7, Employee shall be paid for all accrued and
contribution
unused sick
to
leave,
PERS,
vacation
Health
time,
Insurance
paid holidays;
allowance,
and
and
the cash
car allowance.
value of all
Severance
benefits including
will be paid
employer' s
in monthly
installments equal in number to the number of months' severance due employee pursuant to this Section.
SECTION 10. NOTICE TO RESIGN
Employee may terminate this Contract by providing written notice to the City at least thirty (30) days prior to the effective date ofresignation. The City shall have no further obligation to provide payments and benefits after the effective date ofthe resignation. The City requests that Employee provide six (6) to twelve ( 12) months advance notice in the event that he determines to retire from service.
SECTION 11. VACATION AND SICK LEAVE.
Employee will accrue vacation at a rate of fifteen ( 15) days per year. Up to forty (40) hours of unused vacation hours earned may be cashed out. Employee will accrue ninety- six (96) hours of sick leave per year. Up to forty ( 40) hours of sick leave can be cashed out annually after Employee accrues ninety- six (96) hours. There is no cap on accrual.
SECTION 12. DISABILITY. COST -OF -LIVING ADJUSTMENTS. HEALTH AND LIFE INSURANCE.
Employee shall be provided the same disability, COLA adjustments ( beginning with 2008 adjustment), health, dental, vision and life insurance benefits that are presently provided to other management employees of Employer and any such increases to benefits will not require City Council action to be effective. Employer will contribute $ 1, 620 per month towards Employee' scafeteria plan.
SECTION 13. RETIREMENT.
Employer shall pay Employee' scontribution to the Public Employees Retirement System in accordance with adopted policies ofEmployer.
SECTION 14. DUES AND SUBSCRIPTIONS.
Employer shall budget and pay for the professional dues and subscriptions ofEmployee necessary for his continuation and full participation in national, regional, state and local associations and organizations necessary 108
and desirable for his continued professional participation, growth and advancement and for the good of Employer.
SECTION 15. PROFESSIONAL DEVELOPMENT.
A. Employer shall budget for and pay the travel and subsistence expenses ofEmployee for professional official travel, meetings and occasions ( maximum of three annually) adequate to continue the professional development of Employee and to adequately pursue necessary official and other functions for Employer, including but not limited to the League of California Cities and such other national, regional, state and local governmental groups and committees thereof of which Employee may serve as a member. Employer shall budget and pay for the travel and subsistence expense of Employee for short courses, institutes and seminars necessary for her professional development and for the good of the Employer.
SECTION 16. REIMBURSEMENT OF EXPENSES.
To the extent Employee necessarily incurs expenses in the performance of her duties, Employee will receive prompt reimbursement therefore. Employee shall submit a claim form to Employer in the form and manner required of any employee. The requirement for a claim form shall apply to mileage reimbursement under Section 6 ofthis Contract.
SECTION 17. INDEMNIFICATION.
Employer shall defend, save harmless and indemnify Employee in accordance with Division 3. 6of the California Government Code, commencing with section 810.
SECTION 18. BONDING.
Employer shall bear the full cost of any fidelity or other bonds required of the Employee under any law or ordinance.
SECTION 19. OTHER TERMS AND CONDITIONS OF EMPLOYMENT.
Unless otherwise specifically provided herein, all provisions of the Municipal Code and regulations and rules ofEmployer including but not limited to those relating to vacation and sick leave, retirement system contributions, holidays and other fringe benefits and working conditions, as they now exist or hereafter may be amended also shall apply to Employee as they would to other unrepresented employees of the Employer.
SECTION 20. NOTICES.
Notices pursuant to this Contract shall be in writing given by deposit in the custody of the United State Postal Service, postage prepaid, addressed as follows:
1) Employer:
2) Employee:
Mayor, City of Lathrop, 390 Towne Centre Drive, Lathrop, CA 95330 Salvador V. Navarrete, 3378 Lighthouse Court, Atwater, CA 95301 Alternatively, notices required pursuant to this Contract may be personally served in the same manner as is applicable to civil judicial process. Notice shall be deemed given as of the date of personal service or as ofthe date of deposit of such written notice in the course of transmission in the United States Postal Service. 109
SECTION 21. GENERAL PROVISIONS.
A. The text herein shall constitute the entire Contract between the parties.
B. Ifthe Employee dies prior to the expiration of the term of employment, any monies that may be due to him from Employer under this Agreement as of the date of his death shall be paid to his beneficiaries or personal representatives.
C. This Contract shall become effective on the date first written above.
D. If any provision, or any portion thereof, contained in this Contract is held unconstitutional, invalid or unenforceable, the remainder of this Contract, or portion thereof, shall be deemed severable, shall not be affected and shall remain in full force and effect.
IN WITNESS WHEREOF, the City of Lathrop has caused this Contract to be signed and executed in its behalf by its Mayor and duly attested by its City Clerk, and the Employee has signed and executed this Contract, both in duplicate, the day and year first above written.
Rick Caldeira, City Clerk
APPROVED AS TO FORM:
JOI
j1V. STOVALL, Interim City Attorney
EMPLOYER"
CITY OF %iathrop
By:
Kris
Salvador V. Navarrete
110
Amendment Number One to Employment Agreement Between the City of Lathrop and Salvador V. Navarrete
November 19, 2018
The original Employment Agreement between the City of Lathrop and Salvador V. Navarrete,' attached hereto and incorporated herein as Exhibit " A", was entered into between the parties for services of City Attorney on or about January 14, 2008.
The Employment Agreement has automatically renewed in January of 2013 and January of 2018 pursuant to the conditions as described in Section 2 of the Employment Agreement, attached hereto and incorporated herein as Exhibit "B".
The City Council has met and with a vote of 4-0, with Councilmember Dresser absent, approves the following amendment to the Employment Agreement, effective November 19, 2018:
1. Increase current base salary by 5%; and
2. If Employee resigns his position, he will be paid for all accrued and unused management leave, sick leave and vacation time.
Unless specifically stated above, no other changes to the original agreement (or Amendment One) are intended by this Agreement.
EMPLOYEE
By:
Date: 1 —/ 9
Salvador V. Navarrete
APPROVED AS TO FORM:
Ade--
ATTEST:
eresa Vargas, City C1
CITY OF LATHROP
B
Sonny Dhaliwal, Mayor
Date: /(// q;/'/ 0
Attachments:
Exhibit " A" — Employment Agreement for Salvador V. Navarrete effective January 14, 2008. 111
EMPLOYMENT CONTRACT
THIS EMPLOYMENT CONTRACT (" Contract") is made and entered into this 1 1th day ofDecember, 2007, by and between the City ofLathrop, California, a general law city organized under the laws of the State of California, hereinafter called "Employer," and Salvador V. Navarrete, an individual, hereinafter called Employee," and is effective as of January 14, 2008 (" Effective Date").
The parties agree as follows:
SECTION 1. DUTIES.
A. General.
Employer hereby employs Employee as City Attorney to perform the functions and duties specified in the laws ofthe State ofCalifornia, the Municipal Code ofthe City ofLathrop, and the Ordinances and Resolutions of the City ofLathrop, and to perform such other legally permissible and proper duties and functions as the City Council shall from time to time assign.
B. Description ofDuties.
In amplification of Section 1A. ofthe Contract, Employee shall serve as general counsel and chief legal advisor to employer, and perform all legal duties for Employer, except i) When, in the opinion ofEmployer, it would be more appropriate to hire outside specialist counsel. In such event, Employee shall assist Employer in selecting such outside specialist counsel. Such outside specialist counsel may serve in lieu of Employee on any particular matter, or may assist Employee; or
ii) When counsel for Employer is otherwise provided, as in the case of counsel provided by insurers in connection with various insurance policies held by Employer, or provided by the Risk Management Authority of which Employer is a member; or iii) When a conflict exists such that Employee is prohibited by law or rules of professional conduct from representing or advising Employer.
C. In further amplification of Section 1.A. ofthis contract, Employee shall, unless excused by Employer, attend all meetings of the City Council and the Planning Commission of the City of Lathrop, and meetings of such other Boards or Commissions of the City as the City Council may, • from time to time, direct.
D. In further amplification of Section 1. Aof this Contract, it is recognized and agreed that Employee reports to the City Council ofEmployer, and not to the City Manager of Employer, but Employee will co- ordinate with the City Manager of Employer to ensure the legal needs ofEmployer are met. Employee shall operationally be considered a department head with all the rights, duties and obligations thereof.
112
SECTION 2. TERM,
A. The term of this Contract shall initially be for five (5) years, commencing as of the Effective Date, andshall be automatically renewed and extended for an additional five (5) year period at the end of each renewal and extension period, unless either party shall provide written notice of non -renewal at least ninety ( 90) days prior to the end ofthe period in which notice is given. In the event Employer declares its intention not to renew and extend this Contract, then Employee, while continuing to perform all ofhis duties hereunder, may undertake the pursuit of new employment opportunities.
B. Nothing in this Contract shall prevent, limit, or otherwise interfere with the right of Employee to resign at any time for any reason.
C. Notwithstanding any other provision in this Section 2, this Contract may be earlier terminated in accordance with Section 7 ofthis Contract D. Employee shall remain in the exclusive employ ofEmployer, and shall neither accept other employment nor become employed by any other employer except upon written approval ofEmployer.
E. The term " employed" shall not be construed to include occasional teaching, writing, speaking, or consulting performed during Employee' stime off.
SECTION 3. DISABILITY.
IfEmployee shall, for whatever reason, become incapable of performing any ofthe essential functions of City Attorney, even with reasonable accommodation by Employer, either
1. Permanently, or
2. For a period exceeding the period of leave available to the Employee under the Family Medical Leave Act orthe California Family Rights Act, or accrued sick leave, whichever is longer, then Employee shall be deemed to have suffered a disability. Employer and Employee agree the the time period specified in this paragraph 2 is a reasonable accommodation by Employer, and that granting longer time would be an undue hardship on Employee.
SECTION 4. SALARY.
Employer agrees to pay Employee, effective January 14, 2008, for his duties, a base annual salary of one hundred fifty thousand dollars ($ 150, 00) payable in installments at the same time and in the same manner as other Employees ofthe Employer are paid.
The City Council shall conduct an annual performance evaluation within fifteen ( 15) days ofJanuary 14th each year commencing in 2009. This evaluation shall be completed as a joint effort between Employee and
Employer. Ifdesired, an outside facilitator, to be mutually agreed upon by Employer and Employee, and at Employer' ssole cost, may be utilized. Upon satisfactory completion of this annual performance review, Employer may grant merit increases to the base salary and other benefits to provide to Employee under this Contract. Any such modifications shall be in writing and signed by Employee and Employer.
SECTION 5. ,HOURS OF WORK.
It is recognized that Employee must devote a great deal of time outside normal office hours to business of 113
Employer. To that end, Employee will be granted fifteen ( 15) days of management leave per calendar year.
Management leave is fully credited on January 1n of each year and cannot be cashed out or rolled over.
SECTION 6. AUTOMOBILE ALLOWANCE.
Employer shall receive an automobile allowance of $450. 00 per month for the general business use of his personal vehicle; however, Employer shall also reimburse Employee at the IRS standard mileage rate for any business use of his personal vehicle for any single business trip totaling more than 100 miles.
SECTION 7. TERMINATION
This Contract shall terminate upon the occurrence of any ofthe following events:
A. The death ofEmployee.
13. The dissolution or bankruptcy ofEmployer.
C. The disability ofEmployee, as defined in Section 3 ofthis Contract.
D. The majority ofthe City Council ofEmployer votes to terminate the Employee at a duly authorized meeting.
E. Ifthe Employer, citizens or legislature act or acts to amend any provision of applicable law that substantially changes the role, powers, duties, authority, or responsibilities ofthe Employee, the Employee shall have the right to declare that such amendments constitute termination.
F. Ifthe Employer reduces the base salary, compensation or any other financial benefit ofthe Employee, unless it is applied in no greater percentage than the average reduction of all department heads, such action shall constitute a breach ofthis Contract and will be regarded as termination.
G. If the Employee resigns following an offer to accept resignation, or a suggestion that Employee resign, whether formal or informal, by any member of the City Council ofEmployer acting as representative ofthe majority ofthe City Council, then the Employee may declare a termination as of the date of the suggestion.
H. Breach of contract declared by either party with a
thirty (30) day cure period for either
Employee orEmployer to be provided. Written notice of a breach of contract shall be provided.
T. Conviction ofEmployee ofany public offense that is a felony, and/ or involves moral
turpitude, and/ orthe punishment for which includes a prohibition of holding public employment.
SECTION 8. CONFIDENTIALITY
A. Unless the Employee expressly requests otherwise in writing the evaluation of the Employee shall at all times be conducted in closed session of the City Council and shall be considered confidential to the maximum and full extent permitted by law. Nothing herein shall prohibit the Employer or the Employee from sharing the content of the City Attorney' s evaluation with their respective legal counsel.
B. In the event oftermination or resignation, the Employer and Employee agree not to make comments or statements about each other and shall respond to inquiries by only confirming that such termination or resignation occurred. In addition, the Employer and Employee agree not to discuss the circumstances surrounding employment and termination with any person other than their respective legal counsel, including but not limited to members ofthe media, public, and City staff. 114
SECTION 9. SEVERANCE PAY
Ifthis Contract is terminated because of the reasons specified in Section 7. C, 7. D, 7.E, 7.F, 7. G, or an uncured breach by Employer pursuant to 7. H, Employer shall pay severance pay to Employee up to a maximum of nine (9) months' salary. Employee may elect to treat the non -renewal ofthe Contract ( as described in Section
2.A) as a termination that entitles him to severance pay in accordance with this Section. A severance bank of six 6) months pay is granted on the 61" day after the Effective Date of this Contract. Employee thereafter shall earn one ( 1) additional month ofseverance per year of service, not to exceed a combined total of nine (9) months severance.
If Employee is terminated by the Employer within the three (3) months preceding or following a General Election where one or more. City Council seats are contested on the ballot of such election (the election cool- offperiod"), then Employee will be granted an additional three ( 3) months severance salary only — no payout on additional benefits or leave accruals) to the severance bank currently earned.
Ifthis contracted is terminated for any reason specified in Section 7 within the first 60 days of employment, Employee will receive three (3) months of severance pay.
Ifthis contract is terminated for any reason specified in Section 7, Employee shall be paid for all accrued and unused sick leave, vacation time, paid holidays;
contribution to PERS, Health Insurance allowance,
and
and
the cash
car allowance.
value ofall
Severance
benefits including
will be paid
employer' s
in monthly
installments equal in number to the number of months' severance due employee pursuant to this Section.
SECTION 10. NOTICE TO RESIGN
Employee may terminate this Contract by providing written notice to the City at least thirty (30) days prior to the effective date ofresignation. The City shall have no further obligation to provide payments and benefits after the effective date ofthe resignation. The City requests that Employee provide six (6) to twelve ( 12) months advance notice in the event that he determines to retire from service.
SECTION 11. VACATION AND SICK LEAVE.
Employee will accrue vacation at a rate of fifteen ( 15) days per year. Up to forty (40) hours of unused vacation hours earned may be cashed out. Employee will accrue ninety- six (96) hours of sick leave per year. Up to forty (40) hours of sick leave can be cashed out annually after Employee accrues ninety- six (96) hours. There is no cap on accrual.
SECTION 12. DISABJLrTY. COST- OF- L1VaNG ADJUSTMENTS. HEALTH AND LIFE INSURANCE.
Employee shall be provided the same disability, COLA adjustments ( beginning with 2008 adjustment), health, dental, vision and life insurance benefits that are presently provided to other management employees of Employer and any such increases to benefits will not require City Council action to be effective. Employer will contribute $ 1, 620 per month towards Employee' s
cafeteria plan.
SECTION 13. RETIREMENT,
Employer shall pay Employee' scontribution to the Public Employees Retirement System in accordance with adopted policies ofEmployer.
SECTION 14. DUES AND SUBSCRIPTIONS.
Employer shall budget and pay for the professional dues and subscriptions ofEmployee necessary for his continuation and full participation in national, regional, state and local associations and organizations necessary 115
and desirable for his continued professional participation, growth and advancement and for the good ofEmployer.
SECTION 15. PROFESSIONAL DEVELOPMENT.
A. Employer shall budget for and pay the travel and subsistence expenses ofEmployee for professional official travel, meetings and occasions ( maximum of three annually) adequate to continue the professional development of Employee and to adequately pursue necessary official and other functions for Employer, including but not limited to the League of Califomia Cities and such other national, regional, stale and local governmental groups and committees thereof of which Employee may serve as a member. Employer shall budget and pay for the travel and subsistence expense ofEmployee for short courses, institutes and seminars necessary for her professional development and for the good of the Employer.
SECTION 16. REIMBURSEMENT OF EXPENSES.
To the extent Employee necessarily incurs expenses in the performance of her duties, Employee will receive prompt reimbursement therefore. Employee shall submit a claim form to Employer in the form and manner required of any employee. The requirement for a claim form shall apply to mileage reimbursement under Section 6 ofthis Contract.
SECTION 17. INDEMNIFICATION.
Employer shall defend, save harmless and indemnify Employee in accordance with Division 3. 6of the California Government Code, commencing with section 810.
SECTION 18. BONDING.
Employer shall bear the full cost ofany fidelity or other bonds required of the Employee under any law or ordinance.
SECTION 19. OTHER TERMS AND CONDITIONS OF EMPLOYMENT.
Unless otherwise specifically provided herein, all provisions of the Municipal Code and regulations and rules ofEmployer including but not limited to those relating to vacation and sick leave, retirement system contributions, holidays and other fringe benefits and working conditions, as they now exist or hereafter may be amended also shall apply to Employee as they would to other unrepresented employees ofthe Employer.
SECTION 20. NOTICES.
Notices pursuant to this Contract shall be in writing given by deposit in the custody of the United State Postal Service, postage prepaid, addressed as follows:
1) Employer: Mayor, City ofLathrop, 390 Towne Centre Drive, Lathrop, CA 95330 2) Employee: Salvador V. Navarrete, 3378 Lighthouse Court, Atwater, CA 95301 Alternatively, notices required pursuant to this Contract may be personally served in the same manner as is applicable to civil judicial process. Notice shall be deemed given as ofthe date ofpersonal service or as of the date of deposit ofsuch written notice in the course oftransmission in the United States Postal Service. 116
SECTION 21. GENERAL PROVISIONS.
A. The text herein shall constitute the entire Contract between the parties.
B. Ifthe Employee dies prior to the expiration ofthe term of employment, any monies that may be due to him from Employer wider this Agreement as of the date of his death shall be paid to his beneficiaries or personal representatives.
C. This Contract shall became effective on the date first written above.
D. If any provision, or any portion thereof, contained in this Contract is held unconstitutional, invalid or unenforceable, the remainder of this Contract, or portion thereof, shall be deemed severable, shall not be affected and shall remain in frill force and effect.
IN WITNESS WHEREOF, the City of Lathrop has caused this Contract to be signed and executed in its behalf by its Mayor and duly attested by its City Clerk, and the Employee has signed and executed this Contract, both in duplicate, the day and year first above written.
Rick Caldeira, City Clerk
APPROVED AS TO FORM:
JO . STOVALL, Interim City Attorney
Salvador V. Navarrete
117
Amendment Number Two to Employment Agreement Between the Cty of Lathrop and Salvador V. Navarrete
August 8, 2022
The original Employment Agreement between the City of Lathrop and Salvador V. Navarrete, attached hereto and incorporated herein as Exhibit " A", was entered Into between the parties for services of City Attorney on or about January 14, 2008.
On or about November 19, 2018 the City Council unanimously approved Amendment Number One, attached herein as Exhibit " B".
The City Council hereby approves a performance - based increase to current base salary of 5% effective July 11, 2022.
Unless specifically stated above, no other changes to the original agreement ( or Amendments) are intended by this Amendment.
EMPLOYEE CITY OF LATHROP
By:
Salvador V. Navarrete
Date: i'// tin
APPROVED AS TO FORM:
Michael G. Colantuono
Special Counsel
ATTEST:
eresa Vargas, City CI Government Services Director
Sorfny Dhali al, Mayor
Date: Ve/ vi
Attachments:
Exhibit "A" — Employment Agreement for Salvador V. Navarrete effective January , 2008 Exhibit "B" —Amendment Number One to Employment Agreement dated November 19, 2018 118
EMPi/ ViMEN1 CONTRACT
THIS EMPLOYMENT CONTRACT (" Contract") is made and entered into this 11th day ofDecember, 2007, by and between the City of Lathrop, California, a general law city organized under the laws of the State of California, hereinafter called "Employer," and Salvador V. Navarrete, an individual, hereinafter called Employee," and is effective as ofJanuary 14, 2008 (" Effective Date").
The parties agree as follows:
SECTION 1. DUTIES.
A. General.
Employer hereby employs Employee as City Attorney to perform the functions and duties specified in the laws ofthe State ofCalifornia, the Municipal Code ofthe City of Lathrop, and the Ordinances and Resolutions ofthe City ofLathrop, and to perform such other legally permissible and proper duties and functions as the City Council shall from time to time assign.
B. Description ofDuties.
In amplification of Section 1A. ofthe Contract, Employee shall serve as general counsel and chief legal advisor to employer, and perform all legal duties for Employer, except i) When, in the opinion ofEmployer, it would be more appropriate to hire outside specialist counsel. In such event, Employee shall assist Employer in selecting such outside specialist counsel. Such outside specialist counsel may serve in lieu ofEmployee on any particular matter, or may assist Employee; or
Cu) When counsel for Employer is otherwise provided, as in the case of counsel provided by insurers in connection with various insurance policies held by Employer, or provided by the Risk Management Authority ofwhich Employer is a member; or ili) When a conflict exists such that Employee is prohibited by law or rules of professional conduct from representing oradvising Employer.
C. In further amplification of Section 1. A. ofthis contract, Employee shall, unless excused by Employer, attend all meetings of the City Council and the Plarming Commission of the City ofLathrop, and meetings of such other Boards or Commissions of the City as the City Council may, • from time to time, direct.
D. In Anther amplification of Section 1.Aofthis Contract, it is recognized and agreed that Employee reports to the City Council ofEmployer, and not to the City Manager ofEmployer, but Employee will co- ordinate with the City Manager of Employer to ensure the legal needs ofEmployer are met. Employee shall operationally be considered a department head with all the rights, duties and obligations thereat
119
SECTION 2. TERM,
A. The term of this Contract shall initially be for five (5) years, commencing as of the Effective Date, and' shall be automatically renewed and extended for an additional five (S) year period at the end of each renewal and extension period, unless either party shall provide written notice ofnon -renewal at least ninety ( 90) days prior to the end ofthe period in which notice is given. In the event Employer declares its intention not to renew and extend this Contract, then Employee, while continuing to perform all of his duties hereunder, may undertake the pursuit of new employment oppornmities.
B. Nothing in this Contract shall prevent, limit, or otherwise interfere with the right of Employee to resign at any time for any reason.
C. Notwithstanding any other provision in this Section 2, this Contract may be earlier terminated in accordance with Section 7 ofthis Contract D. Employee shall remain in the exclusive employ ofEmployer, and shall neither accept other employment nor become employed by any other employer except upon written approval ofEmployer.
B. The term "employed" shall not be construed to include occasional teaching, writing, speaking, or consulting performed during Employee' stime off.
SECTION 3. DISABILITY,
IfEmployee shall, for whatever reason, become incapable of performing any ofthe essential functions of City Attorney, even with reasonable accommodation by Employer, either
1. Permanently, or
2. For a period exceeding the period ofleave available to the Employee under the Family Medical Leave Act or the California Family Rights Act, or accrued sick leave, whichever is lon81er, then Employee shall be deemed to have suffered a disability. Employer and Employee agree that the time period specified in this paragraph 2 is a reasonable accommodation by Employer, and that granting longer time would be an undue hardship on Employee.
SECTION 4. SALARY,
Employer agrees to pay Employee, effective January 14, 2008, for his duties, abase annual salary of one hundred fifty thousand dollars ($ 150, 00) payable in installments at the same time and in the same manner as other Employees of the Employer are paid.
The City Council shall conduct an annual performance evaluation within fifteen ( 15) days of January 14"' each year commencing in 2009. This evaluation shall be completed as a joint effort between Employee and
Employer. Ifdesired, an outside facilitator, to be mutually agreed upon by Employer and Employee, and at Employer' ssole cost, may be utilized. Upon satisfactory completion of this annual performance review, Employer may grant merit increases to the base salary and other benefits to provide to Employee under this Contract. Any such modifications shall be in writing and signed by Employee and Employer.
SECTION 5. HOTJRS OF WORK.
It is recognized that Employee must devote a great deal of time outside normal office hours to business of 120
Employer. To that end, Employee will be granted fifteen ( 15) days of management leave per calendar year.
Management leave is hilly credited on January 1' of each year and cannot be cashed out or rolled over.
SECTION 6. AUTOMOBILE ALLOWANCE.
Employer shall receive an automobile allowance of $450. 00 pet month for the general business use of his personal vehicle; however, Employer shall also reimburse Employee at the IRS standard mileage rate for any business use of his personal vehicle for any single business trip totaling more than 100 miles.
SECTION 7. TERMINATIQN
This Contract shall terminate upon the occurrence of any ofthe following events:
A. The death ofEmployee.
B. The dissolution or bankruptcy ofEmployer.
C. The disability ofEmployee, as defined in Section 3 of this Contract D. The majority ofthe City Council ofEmployer votes to terminate the Employee at a duly authorized meeting.
E. If the Employer, citizens or legislature act or acts to amend any provision ofapplicable law that substantially changes the role, powers, duties, authority, or responsibilities ofthe Employee, the Employee shall have the right to declare that such amendments constitute termination.
F. If the Employer reduces the base salary, compensation or any other financial benefit ofthe Employee, unless it is applied in no greater percentage than the average reduction of all department heads, such action shall constitute a breach ofthis Contact and will be regarded as termination.
G. Ifthe Employee resigns followingan offer to accept resignation, or a suggestion that Employee resign, whether formal or informal, by any member ofthe City Council of Employer acting as representative ofthe majority ofthe City Council, then the Employee may declare a termination as of the date of the suggestion.
H. Breach of contract declared by either party with a thirty (30) day cure period for either Employee or Employer to be provided. Written notice of a breach ofcontract shall be provided.
L Conviction of Employee ofany publics offense that is a felony, and/ or involves moral turpitude, and/ or the punishment for which includes a prohibition of holding public employment.
SECTION 8. CONFIDENTIALITY
A. Unless the Employee expressly requests otherwise in writing; the evaluation of the Employee shall at all times be conducted in closed session of the City Council and shall be considered confidential to the maximum and full extent permitted by law. Nothingherein shall prohibit die Employer or the Employee from sharing the content of the City Attorney' s evaluation with their respective legal counsel.
B. In the event of termination or resignation, the Employer and Employee agree not to make comments or statements about each other and shall respond to inquiries by only confirming that such termination or resignation occurred. In addition, the Employer and Employee agree not to discuss the circumstances surrounding employment and termination with any person other than their respective legal counsel, including but not limited to members ofthe media, public, and City staff. 121
SECTION 9. SEVERANCE PAY
Ifthis Contract is terminated because of the reasons specified in Section 7. C, 7. D, 7.E, 7.F, 7. G, or an uncured breach by Employer pursuant to 7. H, Employer shall pay severance pay to Employee up to a maximum of nine (9) months' salary. Employee may elect to treat the non -renewal of the Contract ( es described in Section
2.A) as a termination that entitles him to severance pay in accordance with this Section. A severance bank of six 6) months pay is granted on the 61' day after the Effective Date ofthis Contract. Employee thereafter shall earn one (1) additional month of severance per year of service, not to exceed a combined total ofnine ( 9) months severance.
IfEmployee is terminated by the Employcz within the three (3) months preceding or following a General Election where one or more City Council seats are contested on the ballot of such election ( the election cool- offperiod"), then Employee will be granted an additional three (3) months severance salary only — no payout on additional benefits or leave accruals) to the severance bank currently earned.
Ifthis contracted is terminated for any reason specified in Section 7 within the first 60 days of employment, Employee will receive three ( 3) months of severance pay.
Ifthis contract is terminated for any reason specified in Section 7, Employee shall be paid for all accrued and unused sick leave, vacation time, paid holidays; and the cash value of all benefits contribution to PERS, Health Insurance allowance, and car allowance. Severance including
will be paid
employer' s
in monthly
installments equal in number to the number of months' severance due employee pursuant to this Section.
SECTION 10. NOTICE TO RESIGN
Employee may terminate this Contract by providing written notice to the City at least thirty (30) days prior to the effective date ofresignation. The City shall have no further obligation to provide payments and benefits after the effective date of the resignation. The City requests that Employee provide auk (6) to twelve (12) months advance notice in the event that he determines to retire from service.
SECTION 11. VACATION AND SICK LEAVE,
Employee will accrue vacation at a rate offifteen (15) days per year. Up to forty (40) hours ofunused vacation hours earned may be cashed out. Employee will accrue ninety- six (96) hours ofsick leave per year. Up to forty (40) hours of sick leave can be cashed out annually after Employee accrues ninety- six (96) hours. There is no cap on accrual.
SECTION 12. D 4 IL1TY, CAST- OF- L1VIl idAD r,T 1gNTS HRSY rH A T •rte
INSURANCE, -
Employee shall bo provided the same disability, COLA ac} justmonts ( beginning with 2008 adjustment), health, dental, vision and life insurance benefits that are presently provided to other management employees of Employer and any such increases to benefits will not require City Council action to be effective. Employer will contribute $ 1, 620 per month towards Employee' scafeteria plan.
SECTION 13. RETIREMENT,
Employer shall pay Employee' scontribution to the Public Employees Retirement System in accordance with adopted policies ofEmployer.
SECTION 14. DUES AND SUBSCRIP' IIQNS.
Employer shall budget and pay for the professional dues and subscriptions ofEmployee necessary for his continuation and full participation in national, regional, state and local associations and organizations necessary 122
and desirable for his continued professional participation, growth and advancement and for the good ofEmployer.
SECTION 15. PROFESSIONAL DEVELOPMENT.
A. Employer shall budget for and pay the travel and subsistence expenses ofEmployee for professional official travel, meetings and occasions ( maximum ofthree annually) adequate to continue the professional development ofEmployee and to adequately pursue necessary official and other functions for Employer, including but not limited to the League ofCalifornia Cities and such other national, regional, state and local governmental groups and committees thereof of which Employee may serve as a member. Employer shall budget and pay for the travel and subsistence expense ofEmployee for short courses, institutes and seminars necessary for her professional development and for the good of the Employer.
SECTION 16. REIMBURSEMENT OF EXPENSES.
To the extent Employee necessarily incurs expenses in the performance of her duties, Employee will receive prompt reimbursement therefore. Employee shall submit a claim form to Employer in the form and manner required ofany employee. The requirement for a claim form shall apply to mileage reimbursement under Section 6 ofthis Contract.
SECTION 17. MEMNIFICATION.,
Employer shall defend, save harmless and indemnify Employee in accordance with Division 3. 6 of the California Government Code, commencing with section 810.
SECTION 18. BONDING.
Employer shall bear the full cost ofany fidelity or other bonds required ofthe Employee under any law or ordinance.
SECTION 19. OTHER TERMS AND CONDITIONS OF EMPLOYMENT.
Unless otherwise specifically provided herein, all provisions of the Municipal Code and regulations and rules ofEmployer including but not limited to those relatingto vacation and sick leave, retirement system contributions, holidays and other fringe benefits and working conditions, as they now exist or hereafter may be amended also shall apply to Employee as they would to other unrepresented employees of the Employer.
SECTION 20. NOTICES.
Notices pursuant to this Contract shall be in writing given by deposit in the custody ofthe United State Postal Service, postage prepaid, addressed as follows:
1) Employer: Mayor, City ofLathrop, 390 Towne Centre Drive, Lathrop, CA 95330 2) Employee: Salvador V. Navarrete, 3378 Lighthouse Court, Atwater, CA 95301 Alternatively, notices required pursuant to this Contract may be personally served in the same manner as is applicable to civil judicial process. Notice shall be deemed given as ofthe date of personal service or as ofthe date ofdeposit ofsuch written notice in the course oftransmission in the United States Postal Service. 123
SECTION 21. GENERAL PROVISIONS.
A. The text herein shall constitute the entire Contract between the parties.
B. Ifthe Employee dies prior to the expiration ofthe term ofemployment, any monies that may be due to him from Employer under this Agreement as ofthe date of his death shall be paid to his beneficiaries or personal representatives.
C. This Contract shall become effective on the date first written above.
D. If any provision, orany portion thereof, contained in this Contract is held umconsli onal, invalid or unenforceable, the remainder ofthis Contract, or portion thereof shall be deemed severable, shall not be affected and shall remain in full force and effect.
IN WITNESS WHEREOF, the City ofLathrop has caused this Contract to be signed and executed in its behalf by its Mayor and duly attested by its City Clerk, and the Employee has signed and executed this Contract, both in duplicate, the day and year first above written.
Rick Caldeira, City Clerk
APPROVED AS TO FORM:
Salvador V. Navanrete
124
Amendment Number One to Employment Agreement Between the City of Lathrop and Salvador V. Navarrete
November 19, 2018
The original Employment Agreement between the City of Lathrop and Salvador V. Navarrete, attached hereto and incorporated herein as Exhibit "A", was entered into between the parties for services of City Attorney on or about January 14, 2008.
The Employment Agreement has automatically renewedin January of 2013 and January of 2018 pursuant to the conditions as described in Section 2 of the Employment Agreement, attached hereto and incorporated herein as Exhibit "B".
The City Council has met and with a vote of 4-0, with Councilmember Dresser absent, approves the following amendment to the Employment Agreement, effective November 19, 2018:
1. Increase current base salary by 5%; and
2. IfEmployee resigns his position, he will be paid for all accrued and unused management leave, sick leave and vacation time.
Unless specifically stated above, no other changes to the original agreement ( or Amendment One) are intended by this Agreement.
EMPLOYEE CITY OP LATHROP
By: •-•-•
Salvador V. Navarrete Sonny Dhaliwal, Mayor
Date: I /- 141—/ ) 8° Date: / ( 7/ ffie
APPROVED AS TO FORM:
dee- pai, 4;;;,..,
ATTEST:
Vargas, CityCl
Attachments:
Exhibit " A" — Employment Agreement for Salvador V. Navarrete effective January 14, 2008. 125
IV
Amendment Number One to Employment Agreement Between the City of Lathrop and Salvador V. Navarrete
November 19, 2018
The original Employment Agreement between the City ofLathrop and Salvador V. Navarrete, attached hereto and incorporated herein as Exhibit " A", was entered into between the parties for services of City Attorney on or about January 14, 2008.
The Employment Agreement has automatically renewed in January of 2013 and January of 2018 pursuant to the conditions as described in Section 2 ofthe Employment Agreement, attached hereto and incorporated herein as Exhibit " B".
The City Council' has met and with a vote of4-0, with Councilmember Dresser absent, approves the following amendment to the Employment Agreement, effective November 19, 2018:
1. Increase current base salary by 5%; and
2. IfEmployee resigns his position, he will be paid for all accrued and unused management leave, sick leave and vacation time.
Unless specifically stated above, no other changes to the original agreement ( or Amendment One) are intended by this Agreement.
EMPLOYEE CITY OF LATHROP
By: By:
Salvador V. Navarrete Sonny Dhaliwal, Mayor
Date: Date:
APPROVED AS TO FORM:
14,( G• ColnNfw" AI,
ATTEST:
3` o CC + I
Teresa Vargas, City Clerk
Attachments:
Exhibit " A" — Employment Agreement for Salvador V. Navarrete effective January 14, 2008. 126
Amendment Number Three to Employment Agreement Between the City of Lathrop and Salvador V. Navarrete
August 14, 2023
The original Employment Agreement between the City of Lathrop and Salvador V. Navarrete, attached and incorporated herein as Exhibit " A," was entered into between the parties for services of City Attorney on or about January 14, 2008.
On or about November 19, 2018, the City Council approved Amendment Number One, which is attached and incorporated herein as Exhibit " B."
On or about August 8, 2022, the City Council approved Amendment Number Two, which is attached and incorporated herein as Exhibit " C."
The City Council hereby approves an amendment to the first paragraph of Section 9 to read as follows:
If this Contract is terminated because of the reasons specified in Section 7. C, 7. D, 7. E,
7. F, 7. G, or an uncured breach by Employer pursuant to 7. H, Employer shall pay severance pay to Employee of twelve ( 12) months of salary. Employee may elect to treat the non - renewal of the Contract ( as described in Section 2.A) as a termination that entitles him to severance pay in accordance with this Section. This provision shall be limited by the requirements of Government Code sections 53260 and 53621.
The City Council hereby further approves the deletion of the third paragraph of Section 9.
Unless specifically stated above, no other changes to the original agreement ( or Amendments) are intended by this Amendment.
EMPLOYEE i CITY OF LATH
By:
Salvador V. Navarrete
Date: 6 - / r-ZOZ- 3
APPROVED AS TO FORM:
pecial Couns
Bv:
Paul Ak ice Mayo
Date: $// ill 23
127
ATTEST:
eresa Vargas, City Clerk/ ernment Services Manager
Attachments:
Exhibit " A" — Employment Agreement for Salvador V. Navarrete effective January, 2008 Exhibit " B" — Amendment Number One to Employment Agreement dated November 19, 2018 Exhibit " C" —Amendment Number Two to Employment Agreement dated August 8, 2022 128
Docusign Envelope ID: EC109194- 0O3E- 4652- 8EDA- 4A1C43429B98 Attachment F
Amendment Number One to Employment Agreement Between
The City of Lathrop and Stephen Sealy
September 9, 2024
The original Employment Agreement between the City of Lathrop and Stephen Sealy, attached hereto and incorporated herein as Exhibit " A", was entered into between the parties for services of Interim Police Chief and Police Chief on or about November 13, 2023.
The City Council hereby approves an amendment to Section 3 to provide a 3% merit increase to base salary effective July 6, 2024 and replace the second paragraph to read as follows:
The City Council shall conduct an annual performance evaluation in accordance with the City' s
Annual Performance Review Process for Council -Appointed Positions. This evaluation shall be completed as a joint effort between Employee and Employer. If desired, an outside facilitator, to be mutually agreed upon by Employer and Employee, and at Employer' ssole cost, may be utilized. On an annual basis, Employer may grant merit increases to the base annual salary and provide other benefits to Employee under this Contract at its discretion.
Unless specifically stated above, no other changes to the original agreement are intended by this Amendment.
EMPLOYEE CITY OF LATHROP
By: By:
Stephen Sealy Sonny Dhaliwal, Mayor
Date: Date:
APPROVED AS TO FORM:
DocuSigned by:
n&iOla W l/A r0
Yor0007611oo4M_.
Michael G. Colantuono, Special Counsel
ATTEST:
Teresa Vargas, City Clerk/ Government Services Director Attachments:
Exhibit " A" — Employment Agreement for Stephen Sealy effective November 13, 2023 373007. 1
129
Attachment G
EMPLOYMENT AGREEMENT
THIS EMPLOYMENT AGREEMENT (" Contract") is made and entered into this 13 day of November, 2023, by and between the City of Lathrop, California, a general law city organized under the laws of the State of California, hereinafter called " Employer," and Stephen Sealy, an individual, hereinafter called " Employee," and is effective as of November 13, 2023 (" Effective Date").
The parties agree as follows:
SECTION 1.. DUTIES.
Employer hereby employs Employee as the Interim Chief of Police (" Chief of Police") to perform the functions and duties specified in the laws of the State of California, the Municipal Code of the City of Lathrop, and the Ordinances and Resolutions of the City of Lathrop, and to perform such other legally permissible and proper duties and functions as the City Council shall from time to time assign. Due to the POST institutional timelines that are unrelated to his qualifications or performance, the Interim" designation shall be removed, this shall occur no later than March 1, 2024.
For purposes of this agreement, the Interim designation does not affect the terms or conditions of this agreement.
SECTION 2. TERM.
A. The term of this Contract shall initially be for four ( 4) years, commencing as of the Effective Date, and shall be automatically renewed and extended for additional four ( 4) year periods at the end of each four year period, unless either party shall provide written notice of non - renewal at least ninety ( 90) days prior to the end of the period in which notice is given.
B. Nothing in this Contract shall prevent, limit, or otherwise interfere with the right of Employee to resign as the Chief of Police or as an employee of the City at any time for any reason.
C. Employee shall remain in the exclusive employ of Employer, and shall neither accept other employment nor become employed by any other employer except upon written approval of Employer.
D. The term " employed" shall not be construed to include occasional teaching, writing, speaking, or consulting performed during Employee' stime off.
E. Employee' sinitial date of hire was February 22, 2022, but this Agreement is effective as the Effective Date specified above.
12227854. 1LA140- 001
130
SECTION 3. SALARY.
Employer agrees to pay Employee, commencing with the Effective Date for his Interim Chief of Police duties, the base annual salary of two hundred thirty- six thousand three hundred seventy- nie ($236, 379), and commencing on March 1, 2024, for his Chief of Police duties, the base annual salary of two hundred forty- eight thousand one hundred ninety ($ 248, 190), payable in installments at the same time and in the same manner as other Employees of the Employer are paid.
On the one ( 1) year anniversary of the Effective Date, the City Council shall conduct an annual performance evaluation. This evaluation shall be completed as a joint effort between Employee and Employer. If desired, an outside facilitator, to be mutually agreed upon by Employer and Employee, and at Employer' ssole cost, may be utilized. On the subsequent anniversaries, Employer may grant merit increases to the base annual salary and provide other benefits to Employee under this Contract at their discretion.
SECTION 4. HOURS OF WORK.
It is recognized that Employee must devote a great deal of time outside normal office hours to business of Employer. To that end, Employee will be granted management leave of one hundred and twenty ( 120) hours of management leave per calendar year. Management leave is fully credited on January 1st of each year.
SECTION 5. VEHICLE AND CELL P IONS,
Employee shall receive a City unmarked police vehicle for use during the regular course and scope of his duties, and also for anticipated off duty usage, and Employee, at his option, will receive a City -issued cellular phone or a cellular phone allowance.
Normal off duty usage of the city vehicle and cell phone by the Chief is anticipated due to the significant amount of time expected from the Chief outside of his normal work hours.
SECTION 6. UNIFORM ALLOWANCE.
Employer will provide Employee with an annual uniform allowance on the same terms as provided to other peace officers for the department.
SECTION 7. TERMINATION.
This Contract shall terminate upon the occurrence of any of the following events:
A. The death of Employee.
B. The dissolution or bankruptcy of Employer.
C. The disability of Employee, as defined herein.
12227854. 1 LA140- 001
131
D. The majority of the City Council of Employer votes to terminate the Employee at a duly authorized meeting. Except for non - renewal of contract pursuant to 2A, the Employer however shall not terminate Employee within a " cooling off period of ninety ( 90) days either before or after an election for which a City Council Member is elected. Pursuant to Government Code section 3304, subsection ( c), the City Council must provide written notice of termination that specifies the reason( s) for termination. It shall be sufficient if the City Council provides as a reason for termination that there has been a change in administration; that there is an incompatibility of management styles; and/ or that the termination is for purpose of implementing the goals or policies of the City.
E. If the Employer, citizens or legislature act or acts to amend any provision of applicable law that substantially changes the role, powers, duties, authority, or responsibilities of the Employee, the Employee shall have the right to declare that such amendments constitute termination.
F. If the Employer reduces the base salary, compensation or any other financial benefit of the Employee, unless any such reduction is pursuant to a City wide furlough program, such action shall constitute a breach of this Contract and will be regarded as termination.
G. If the Employee resigns following an offer to accept resignation, by majority of the City Council of Employer, then the Employee may declare a termination as of the date of the requested resignation.
H. Breach of contract declared by either party with a thirty ( 30) day cure period for either Employee or Employer to be provided. Written notice of a breach of contract shall be provided.
I. Conviction of Employee of any public offense that is a felony, and/ or involves moral turpitude, and / or the punishment for which includes a prohibition of holding public employment.
SECTION 8. CONFIDENTIALITY,
Unless the Employee expressly requests otherwise in writing, the evaluation of the Employee during his service as Chief of Police shall at all times be conducted in closed session of the City Council and shall be considered confidential to the full extent permitted by law. Nothing herein shall prohibit the Employer or the Employee from sharing the content of Employee' sevaluation with their respective legal counsel.
SECTION 9. SEVERANCE PAY.
Subject to the requirements of Government Code sections 53260 and 53261, if this Contract is terminated pursuant to Section 7, Paragraph B, D, E, F, G or City breach of Contract, Employer shall pay severance to Employee in the amount up to Nine ( 9) months' salary.
12227854. 1LA140- 001
132
Instead of nine months of severance pay in accordance with this Section, Employee may elect to treat the non - renewal of the Contract ( as described in herein and in Section 2) as a termination that entitles him to three ( 3) months' severance pay in addition to regular pay during the 90 day notice period of non - renewal referenced in Section 2A.
If this contract is terminated for any reason specified herein, Employee shall be paid for all accrued and unused sick leave, vacation time, paid holidays; and the value of all benefits including employer' s contribution to PERS, and Health Insurance allowance. Severance will be paid in one payment within 30 days of termination.
Employee agrees to provide the City with a full and complete release and waiver of any claims in exchange for severance pay.
SECTION 10. NOTICE TO RESIGN,
Employee may terminate this Contract by providing written notice to the City at least thirty ( 30) days prior to the effective date of resignation. The Employer shall have no further obligation to provide payments and benefits to Employee for his service as Chief of Police after the effective date of the resignation except for all accrued and unused management leave, sick leave and vacation time. The City requests that Employee provide six ( 6) to twelve ( 12) months advance notice in the event that he determines to retire from service.
SECTION 11. INDEMNIFICATION.
Employer shall defend, save harmless and indemnify Employee in accordance with Division 3. 6 of the California Government Code, commencing with section 810.
SECTION 12. BONDING.
Employer shall bear the full cost of any fidelity or other bonds required of the Employee under any law or ordinance.
SECTION 13. DISABILITY, ADJUSTMENTS, HEALTIj AND LIFE
INSURANCE. COST -OF -LIVING. VACATION AND SICK
LEAVE.
Unless otherwise specifically provided herein, all provisions of the Municipal Code and regulations and rules of Employer relating to vacation and sick leave, retirement system contributions, holidays and other fringe benefits and working conditions as they now exist or hereafter may be amended also shall apply to Employee as they would to other unrepresented employees of the Employer. An annual cost of living increase adjustment shall be applied to the base annual salary going forward to Employee as established for all other non - represented employees. Employee will accrue vacation and sick leave at a rate as outlined in the City' s Administrative Policies Manual based on his initial hire date. Additionally, Employee may cash out up to forty ( 40) hours of sick leave annually, in addition to cashing out forty ( 40)
12227854. 1 LA140- 001
133
hours of accrued vacation hours per year, pursuant to Personnel Rule & Regulation Rule 7.2(D).
Employer will contribute $ 2, 429 per month, in the 2023 calendar year, commencing with the Effective Date and $ 2, 525 in calendar year 2024, towards Employee' shealth, dental, and vision insurance benefits, and any such increase to benefits provided to other management employees. Additionally, Employer will continue to provide 5, 000 annually towards deferred compensation.
SECTION 14. RETIREMENT,
Employer shall pay Employee' scontribution to the Public Employees Retirement System in accordance with adopted policies of Employer.
SECTION 15. NOTICES.
Notices pursuant to this Contract shall be in writing given by deposit in the custody of the United States Postal Service, postage prepaid, addressed as follows:
1) Employer: Mayor, City of Lathrop, 390 Towne Centre Drive, Lathrop, CA 2) Employee: At his address as reflected in his personnel records of the City.
Alternatively, notices required pursuant to this Contract may be personally served in the same manner as is applicable to civil judicial process. Notice shall be deemed given as of the date of personal service or as of the date of deposit of such written notice in the course of transmission in the United States Postal Service.
SECTION 16. GENERAL PROVISIONS.
A. The text herein shall constitute the entire Contract between the parties.
B. If any provision, or any portion thereof, contained in this Contract is held unconstitutional, invalid or unenforceable, the remainder of this Contract, or portion thereof, shall be deemed severable, shall not be affected and shall remain in full force and effect.
12227854. 1LA140- 001
134
IN WITNESS WHEREOF, the City of Lathrop has caused this Contract to be signed and executed in its behalf by its Mayor and duly attested by its City Clerk, and the Employee has signed and executed this Contract, both in duplicate, the day and year first above written.
SECTION 17. SIGNATURES.
EMPLOYEE
Date: November 13, 2023
CITY OF LATHROP
Sonny` Dhiwal, Mayor
Date: November 13, 2023
APPROVED AS TO FORM: ATTEST:
Salvador Navarrete, City Attorney resa Vargas, Ci lerk
12227854. 1LA140- 001
135
PAGE LEFT
INTENTIONALLY
BLANK
136
City of
Quarterly Treasurer Report
June 2024
ITEM 4. 8
This report presents a detailed discussion of the City' sfund balances and investment portfolio as of June 30, 2024.
It includes all investments managed by the City on its own behalf as well as the City' sTrustees. The report provides information on cash flows, broken down by both investment manager ( City or Trustee) and by percentage allocation within the portfolio.
As of June 30, 2024, the investment portfolio was in compliance with all state laws and the City' sInvestment Policy.
Current Portfolio Summary
As directed by the Investment Policy adopted by City Council, City staff strives to attain three primary goals with the City' s investments as follows ( in order of priority):
1. Safety — Preservation of the principal of invested funds
2. Liquidity — Ability to liquidate one or more of the City' s investments if unexpected expenditures arise
3. Return — Attainment of a market rate of return
The majority of the portfolio is invested in the Local Agency Investment Fund ( LAIF), which is administered by the California State Treasurer' soffice. LAIF provides the City with an investment vehicle with yields that are slightly greater than U. S. Treasuries ( T -bills) with a 2 -year maturity or less. LAIF is a high quality investment in terms of safety, liquidity, and yield. Additionally, LAIF is an " On Demand" account; meaning funds may be withdrawn upon with 1 day notice, representing maximum liquidity.
In addition to LAIF, the City holds investments in Money Market Mutual Funds, Nonnegotiable Certificates of Deposit, and State and Local Government Securities ( SLGS). These investments are prudent investment choices and are included in the City' sInvestment Policy as allowable investments.
Each investment mentioned above has a specific maturity date. However, much of the portfolio is On Demand.
The short weighted average maturity provides the City with a great deal of liquidity during this period of heightened economic uncertainty and period of moderate investment yields. This liquidity places the City in a position to invest in longer term maturity investments once interest rates begin to stabilize toward their historical norms; overall macroeconomic indicators signal solid and consistent growth in future years.
The following table ( Table: 1) provides a summary of the City' scash and investments, by holding party, based on recorded value as of June 30, 2024 compared with the prior quarter:
137
Stephen J. Salvatore
City Manager
1) Small variances are due to the summation and rounding of multiple figures to the nearest whole dollar Please see the following pages ( Tables: 2 through 5) for a more detailed analysis of transactional additions and reductions due to cash flow needs, debt service payments, and maturities/ rollovers of certain investments.
Revenues arrived during the quarter, per City staff expectations, are as follows: utility payments, property tax, franchise fees, sales tax ( including Measure C), developer billing fees, grant reimbursements, building permit fees, plan check fees, and Transient Occupancy Tax ( TOT).
Significant payables paid out during the quarter include:
I. Nonrecurring Expenditure Debt Service Payments, Capital Improvement Projects — General Government, Parks, Streets, Water, and Wastewater
II. Recurring Expenditures
a. Contractual — Park & Street Landscaping, and Wastewater Treatment Services b. Intergovernmental payments — South San Joaquin Irrigation District ( Surface Water Contract), Lathrop Manteca Fire District, City of Manteca ( Wastewater Contract) Quarterly Economic Update
According to the latest projections from PFM Asset Management; The second quarter of 2024 was characterized by moderating economic growth, inflation resuming its slowing trend as it inches closer to the Fed' s 2% target, signs of consumer activity beginning to taper, and a labor market that continues to come into better balance. As expected, the Fed kept the overnight rate at its current target range of 5. 25% to 5.0% at its June 12 meeting, marking the seventh consecutive meeting since July 2023 keeping rates at this level. Furthermore, the Fed' s updated " dot plot" showed just one rate cut in 2024, a notable drop from the March projections of three cuts.
This more closely aligned with market expectations, which generally assumed one or two cuts in the back half of this year. U. S. inflation readings continued to make subtle progress toward the Fed' s2% target through most of Q2. The Fed' spreferred measure of inflation, the Personal Consumption Expenditures Index (PCE), tracked lower in May after the April and March readings showed no change. The U. S. labor market continued to soften as the pace of job growth slowed in Q2. The unemployment rate hit 4.1% in June, ending a 28 -month streak of unemployment at or below 4.0%. Overall, the labor market is expected to remain supportive of personal consumption as wage growth continues to outpace inflation. However, some signs of cooling in the labor market, including increasing jobless claims, underscore the moderation in economic expectations over the near -term.
I certify that all of the investments reported herein are in accordance with the "City of Lathrop Investment Policy" adopted on November 13, 2023, with the Government Code, and other contractual agreements. I further certify the investments reported herein provide for the ability of the City to meet cash flow needs for the next six months.
Cari Jame
Director • ; inance
138
Inv
4 1
24 28
935
52 3
7 Trustee
Held
Investments
Recorded
Value
Current PercenYield
t
of
Portfolio
Market
Value
US
Bank UMB
Bank
Union
Bank
Si
County
Pooled
Funds
PFM
Asset
Management +
Year
End
FMV
PNC
Bank
3,
525, 243
1,
356, 484 221, 844
126, 499, 182 502,4. 604
430%
4. 0..
260% 000% 430%
4. 820%
4. 700%
0. 18 %59%
45 .
08%
0 .
00%
0 .0 .
49 %27% 1.
221, 844
126, 499, 182 502, 604
3,
525, 243
1,
356, 484
Total
Investments
Held
by
Trustees (
2)
132, 105, 358
4. 797 %
47. 61%
132, 105, 358
Total
City &
Trustee
Held
Investments &
Cash
Recorded
Value
Current
Yield
Percent
ofortfolio P
Market
Value
Investments
Held
by
the
City
and
Trustees
Cash
in
Checking
Accounts -
Recorded
Value
277, 495, 137 61, 544, 684
4. 870%
100 .
00%
277, 495, 137
Total
Cash
and
Investments
339, 039, 821
One
month
benchmark
for
U.
S.
Treasuries:
Three
month
benchmark
for
U.
S.
Treasuries:
Notes: 1)
See
Table:
4 for
detailed
investments
held
by
the
City .
2)
See
Table:
5 for
detailed
investments
held
by
Trustees.
5. 46%
5. 51 %
139
To
Investments
Held
by
Trustees
Prior
Month
Reco
rded
Value
Purchased Buy)
Redeemed Sell)
Current
Month
Recorded
Value
PNC
Bank
Si
County
Pooled
Funds
UMB
Bank
US
Bank (
3)
PFM
Asset
Management +
Year
End
FMV
500, 612 221, 844
1,
351, 611
3,
215, 394
123, 494, 544
1,
993
4,
874
309, 849
11, 297, 478
502, 604 221, 844
1,
356, 484
3,
525, 243
126, 499, 182
Total
Investments
Held
by
Trustees
128, 784, 004 $
11, 614, 194 $
8,
292, 840) $
132, 105, 358
Total
Cash
in
Checking
Accounts
Held
by
the
City (
2)
56, 628, 272
13, 716, 623
8,
800, 211) $
61, 544, 684
Total
Cash
and
Investments
Held
by
the
City
and
Trustees
330, 489, 771 $
25, 643, 100 $ (
17, 093, 051) $
339, 039, 820
Notes: 1)
LAIF
interest
income is
paid
quarterly (
Mar/ Jun/ Sept/ Dec)
and
received in
the
following
month (
Apr/ Jul/ Oct/ Jan) .
2)
Property
Tax,
Sales
Tax,
Building
permit
revenue,
TOT,
Developer
payments,
and
Utility
payments;
nonrecurring
expenses
paid
during
the
month:
General
government, Parks,
Streets,
Wastewater,
and
Water
CIPs;
also,
recurring
expenses:
Park &
street
landscape
maintenance,
and
water
treatment
services;
lastly,
intergovernmental payments
and
transfers:
SSJID
SCSWSP 0 &
M
expenses .
3)
Interest
earnings
from
BlackRock
Liquidity
Funds T -
Funds
30 Day
Yield 4 .
430%,
debt
service
payments .
140
OF
of
Coup
Descripti
Inv
No
A
9 3
4 4
74, 871, 002 $
74, 871, 002
Wells
FargoMutual
Funds
Money
Market
Mutual
Fund
City No.Acct
12641627
N/ 5. A 160%
Varies
On
Demand
3,
132, 154
3,
132, 154
3,
132, 154 $
3,
132, 154
Califorina
Asset
Management
Program Liquidity
No. Account
6084- 001
N/ 5. A
430%
Varies
On
Demand
67, 386, 624
67, 386, 624
67, 386, 624 $
67, 386, 624
TOTAL
INVESTMENTS
HELD
BY
CITY $
145, 389, 779 $
145, 389, 779
141
Tr
Villa
Asse
ssmen
Dist
No
Dist
LTHRP
FINAUTHREVENUE
BONDS
2023
SERIES A
Money
Market -
Revenue
Account
Money
Market -
Special
Tax
Fund
Money
Market -
CFD
Reserve
Account
Money
Market -
ReAD
Reserve
Account
Money
Market -
Acquired
Obligations
Fund
2003- 2A
Lathrop
CFD
Money
MarketInterest
Account
Money
Market -
Reserve
Account
LAIF -
Interest
Account
CDPH/ CDWR -
SRF
Loan
Agreement
Account
Agreement
Account -
Reserve
Fund
2015
Crossroads
Series B
2015
Crossroads
Series B -
2015
Crossroads
Series B -
2015
Crossro
ads
Series B -
2015
Crossroads
Series B -
2015
Crossroads
Series B -
LOIB
RDP
LOIB
Reserve
Cost
of
Issuance Improvements
COI
Custodian
Agreement
Investments
Held
by
PNC
Bank
by
Account
2012
Water
Loan (
Refunding
of
2000
Water
COPs)
Certificate of
Deposit -
Reserve
Fund
6712198801 6712138805 6712138804 6712138803 6712138801 6711908801 6711908800 6711720002 6711712200 6711720001 278276008 278276006 278276004 278276003 278276000 4 430
4 4.
430%
4. 430%
4. 430%
4. 430%
4. 430%
4. 4.. 480%430% 430%
7/ 1/ 237/ 2/ 237/ 1/ 237/ 1/ 237/ 2/ 23 12/ 12/ 03 12/ 12/ 03 03/ 19/ 03 On
Demand
On
Demand
On
Demand
On
Demand
On
Demand
On
Demand
On
Demand
On
Demand
12,
833 $ 338 $ 209, 258 $ 600,
34 $154 $ 13, 346 $ 703, 254 $
12,
833 338 209, 258 600,34 154 13, 346 703, 254
4. 430 %
12/ 22/ 10
On
Demand $
299, 494 $
299, 494
4 .
430 %
12/ 22/ 10
On
Demand $
629, 432 $
629, 432
4 .
430 %
4. 430%
4. 430%
4. 430%
4. 430%
09/ 01/ 15 09/ 01/ 15 09/ 01/ 15 09/ 01/ 15 09/ 01/ 15
On
Demand
On
Demand
On
Demand
On
Demand
On
Demand
126 $
806,
431 $ 637 $
126
806,
431 637
Total
Inv
Held
estme nts
by
Trustee -
US
Bank $
3,
525, 243 $
3,
525, 243
0. 090%
5/ 22/ 19 $
Total
Investments
Held
byustee - Tr
Pacific
Premier
Bank $
502, 604 $ 502, 604 $
502, 604 502, 604
142
Trus
Inv estmen
Acco
Centra
Impro
vement
Area
1 Redemptio
n
Account
Improvement
Area
1 -
Interest
Account
Improvement
Area
1 -
Admin
Expense
Account
Improvement
Area
1 -
Reserve
Fund
Improvement
Area
1 -
Surplus
Fund
Improvement
Area
2 -
Principal
Account
Improvement
Area
2 -
Redemption
Account Improv
ement
Area
2 -
Interest
Account
Improvement
Area
2 -
Admin
Expense
Account
Improvement
Area
2 -
Reserve
Fund
Improvement
Area
2 -
Surplus
Fund
Improvement
Area
3 -
Principal
Account
Improvement
Area
3 -
Redemption
Acco
unt
Improvement
Area
3 -
Interest
Account
Improvement
Area
3 -
Admin
Expense
Account
Improvement
Area
3 -
Reserve
Fund
Improvement
Area
3 -
Surplus
Fund
Improvement
Area
4 -
Principal
Account
Improvement
Area
4 -
Redemption
Acco
unt
Improvement
Area
4 -
Interest
Account Improv
ement
Area
4 -
Admin
Expense
Account
Improvement
Area
4 -
Reserve
Fund
Improvement
Area
4 -
Surplus
Fund Improv
ement
Area
5 -
Principal
Account
Improvement
Area
5 -
Redemption
Account Improv
ement
Area
5-
Interest
Account
Improvement
Area
5 -
Admin
Expense
Account
149265. 149232
149265. 149267. 149267. 149232. 149232. 149265. 149267. 149267. 149232. 149232. 149268. 1 7 6 149267. 5
32 149267. 1 6 149265. 5
4 3 149265. 2 149265. 1 8
76 5
4 149268. 2 149268. 6149268. 5 149268. 4 149268. 3 149269 . 1 149269. 2 149269 . 3 149269 . 4
4. 430%
02/ 01/ 19
On
Demand
4. 430%
02/ 01/ 19
On
Demand
4. 430%
02/ 01/ 19
On
Demand
4. 430%
02/ 01/ 19
On
Demand
4. 430%
02/ 01/ 19
On
Demand
4. 430%
02/ 01/ 19
On
Demand
4. 430%
02/ 01/ 19
On
Demand
4. 430%
02/ 01/ 19
On
Demand
4. 430%
02/ 01/ 19
On
Demand
4. 430%
02/ 01/ 19
On
Demand
4. 430%
02/ 01/ 19
On
Demand
430% 4.
02/ 01/ 19
On
Demand
430 % 4.
02/ 01/ 19
On
Demand
4. 430%
02/ 01/ 19
On
Demand
4 .
430%
02/ 01/ 19
On
Demand
4 .
430%
02/ 01/ 19
On
Demand
4. 430 %
02/ 01/ 19
On
Demand
4 .
430%
02/ 01/ 19
On
Demand
4 .
430%
02/ 01/ 19
On
Demand
4. 430%
02/ 01/ 19
On
Demand
4. 430%
02/ 01/ 19
On
Demand
4. 430%
02/ 01/ 19
On
Demand
4. 430 %
02/ 01/ 19
On
Demand
4. 430 %
02/ 01/ 19
On
Demand
4. 430%
02/ 01/ 19
On
Demand
4 .
430 %
02/ 01/ 19
On
Demand
4. 430%
02/ 01/ 19
On
Demand
45 12, 296 232, 207 22,
28 770 14, 101 174, 112 43,
56 010 12, 419 385, 303 15, 000 14, 233 96, 646 10,
14 19 101 11, 522
45 12, 296 232, 207 22,
28 770 14, 101 174, 112 43,56 010 12, 419 385, 303 15, 000 14, 233 96, 646 10, 14 19 101 11, 522
143
14926
430
4 430430
InveTotal
stments
Held
by
Trustee -
UMB
Bank $
1,
356, 484 $
1,
356, 484
Investments
Held
by
San
Joaquin
County
Accoby San ita
unt
ry
Sewer
AssessmentD
istrict #
1 Pooled
Funds -
Redemption
Account
Si
CO
FUND #
57961 0.
260%
10/ 1/ 87
On
Demand $
InTotal
vestments
Held
by
Trustee -
San
Joaquin
County $
Investments
Held
by
PFM
Asset
Management
by
Account
PFM
Asset
Management
Money
Market
Fund
US
Treasury
Bond /
Note
US
Treasury
No
tes
US
Treasury
Notes
US
Treasury
Notes
US
Treasury
No
tes
US
Treasury
Notes
US
Treasury
No
tes
US
Treasury
No
tes
US
Treasury
Notes
US
Treasury
Notes
US
Treasury
No
tes
US
Treasury
Notes
US
Treasury
Notes
US
Treasury
No
tes
US
Treasury
Notes
US
Treasury
Notes
US
Treasury
Notes
US
Treasury
Notes
US
Treasury
Notes
US
Treasury
Notes
US
Treasury
Notes
US
Treasury
Notes
US
Treasury
Notes
US
Treasury
Notes
US
Treasury
Notes
US
Treasury
Notes
221, 844 $ 221, 844 $
221, 844 221, 844
20260109
PFM
Funds -
Govt
Select
AAAm $
509, 565 $
509, 565
91282CHL8
4. 625%
06/ 30/ 23
06/ 30/ 25 $
9,
951, 562 $
9,
951, 562
91282CEY3
3. 000%
07/ 15/ 22
07/ 15/ 25 $
660, 762 $
660, 762
91282CEY3
3. 000%
07/ 15/ 22
07/ 15/ 25 $
709, 707 $
709, 707
91282CEY3
3. 000%
07/ 15/ 22
07/ 15/ 25 $
1,
810, 976 $
1,
810, 976
91282CFE6
3. 125%
08/ 15/ 22
08/ 15/ 25 $
48, 945 $
48, 945
91282CFE6
3. 125 %
08/ 15/ 22
08/ 15/ 25 $
709, 707 $
709, 707
91282CFK2
3. 500%
09/ 15/ 22
09/ 15/ 25 $
785, 500 $
785, 500
91282CFK2
3. 500%
09/ 15/ 22
09/ 15/ 25 $
1,
055, 516 $
1,
055, 516
91282CJB8
5 .
000%
09/ 30/ 23
09/ 30/ 25 $
5,
297, 515 $
5,
297, 515
91282CFP1
4. 250%
10/ 15/ 22
10/ 15/ 25 $
718, 090 $
718, 090
91282CFP1
4. 250%
10/ 15/ 22
10/ 15/ 25 $
1,
039, 992 $
1,
039, 992
91282CFW6
4. 500 %
11/ 15/ 22
11/ 15/ 25 $
745, 313 $
745, 313
91282CFW6
4. 500%
11/ 15/ 22
11/ 15/ 25 $
1,
391, 250 $
1,
391, 250
91282CGA3
4. 000%
12/ 15/ 22
12/ 15/ 25 $
987, 031 $
987, 031
91282CGA3
4 .
000 %
12/ 15/ 22
12/ 15/ 25 $
2,
467, 578 $
2,
467, 578
91282CJS1
4 .
250%
12/ 31/ 23
12/ 31/ 25 $
11, 388, 594 $
11, 388, 594
91282CGE5
3. 875%
01/ 15/ 23
01/ 15/ 26 $
689, 500 $
689, 500
91282CGE5
3 .
875%
01/ 15/ 23
01/ 15/ 26 $
763, 375 $
763, 375
91282CGE5
3 .
875%
01/ 15/ 23
01/ 15/ 26 $
788, 000 $
788, 000
91282CGL9
4. 000%
02/ 15/ 23
02/ 15/ 26 $
937, 086 $
937, 086
91282CGL9
4 .
000%
02/ 15/ 23
02/ 15/ 26 $
986, 406 $
986, 406
91282CGL9
4. 000%
02/ 15/ 23
02/ 15/ 26 $
1,
430, 289 $
1,
430, 289
9128286F2
2 .
500%
02/ 28/ 19
02/ 28/ 26 $
2,
165, 625 $
2,
165, 625
91282CGR6
4. 625%
03/ 15/ 23
03/ 15/ 26 $
5,
231, 953 $
5,
231, 953
91282CKH3
4. 500%
03/ 31/ 24
03/ 31/ 26 $
1,
243, 359 $
1,
243, 359
144
Tr
US
Treasury
Notes
US
Treasury
Notes
US
Treasury
Notes
US
Treasury
Notes
US
Treasury
Notes
US
Treasury
Notes
US
Treasury
Notes
US
Treasury
Notes
US
Treasury
Notes
US
Treasury
Notes
US
Treasury
Notes
US
Treasury
Notes
US
Treasury
Notes
US
Treasury
Notes
US
Treasury
Notes
US
Treasury
Subtotal:
91282CKR1 91282CKR1 91282CKR1 91282CKJ9391282CKE0 91282CKA8 91282CJT9 91282CJP7 91282CJK8 91282CJK8 91282CJC6 91282CHY0 91282CHU8 91282CHU8 91282CHM6 912 3 4
4 1
4. 4
375% 500% 375%4. 4.625%
4. 4. 625%625%
4. 625%
4. 375%
4. 000%
4.125% 4.
250%
4. 500%
4 .
500 %
4. 500 % 4.
500%
0 1
2 07/ 15/ 23 08/ 15/ 23 08/ 15/ 23 09/ 15/ 23 10/ 15/ 23 11/ 15/ 23 11/ 15/ 23 12/ 15/ 23 01/ 15/ 24 02/ 15/ 24 03/ 15/ 24 04/ 15/ 24 05/ 15/ 24 05/ 15/ 24 05/ 15/ 24 0 1
2 07/ 15/ 26 08/ 15/ 26 08/ 15/ 26 09/ 15/ 26 10/ 15/ 26 11/ 15/ 26 11/ 15/ 26 12/ 15/ 26 01/ 15/ 27 02/ 15/ 27 03/ 15/ 27 04/ 15/ 27 05/ 15/ 27 05/ 15/ 27 05/ 15/ 27 6 72
37 1,
841, 906 620, 898
2,
930, 641
2,
297, 484
2,
497, 656 799, 750
1,
999, 375
7,
930, 141
4,
089, 696
6,
574, 149 $
6,
574, 149
4,
265, 734 $
4,
265, 734
1,
248, 242 $
1,
248, 242
399, 500 $
399, 500
1,
348, 313 $
1,
348, 313
5,
692, 875 $
5,
692, 875
111, 082, 972 $
111, 082, 972
6 72
37 1,
841, 906 620, 898
2,
930, 641
2,
297, 484
2,
497, 656 799, 750
1 ,
999, 375
7,
930, 141
4,
089, 696
145
Inv
Bo
Federal
Bo
Agency
nd/ Note
Federal
Home
Loan
Banks
Notes (
Callable)
Federal
Home
Loan
Banks
Notes
Fannie
M
ac
No
tes (
Callable)
Federal
Home
Loan
Banks
Notes (
Callable)
Federal
Home
Loan
Banks
Notes (
Callable)
Federal
Home
Loan
Banks
No
tes (
Callable)
FFCB
Bonds
Fannie
Mae
Notes (
Callable)
Fannie
Mae
Notes (
Callable)
Federal
SubtoAgency
tal:
Interest Total
Accrued
Interest +
Year
End
FMV
3 6
7 3
6 7
3130AM 0. VD1
420%
06/ 17/ 21
09/ 17/ 24
3130AWER7 625% 4.
0/ 9/ 23
06/ 06/ 25
3. 3134GXM35
600%
08/ 05/ 22
08/ 01/ 25
1. 3130AN3T5
000%
03/ 23/ 21
03/ 23/ 26
1. 3130ALGJ7
000%
03/ 23/ 21
03/ 23/ 26
1. 3130ANCD0
110%
07/ 30/ 21
07/ 27/ 26
4. 500% 3133EPSW6
08/ 14/ 23
08/ 14/ 26
3135G06L2
0. 875%
12/ 18/ 20
12/ 18/ 26
5. 3135GAS28
420%
04/ 30/ 24
04/ 23/ 27
742, 092 $
742, 092
885, 356 $
885, 356
712, 987 $
712, 987
704, 968 $
704, 968
1,
458, 358 $
1,
458, 358
1,
468, 273 $
1,
468, 273
1,
443, 688 $
1,
443, 688
751, 350 $
751, 350
1,
251, 353 $
1,
251, 353
9,
418, 424 $
9,
418, 424
1,
800, 488 $
1,
800, 488
ToIntal
vestments
Held
by
Trustee -
PFM
Asset
Management $
126, 499, 182 $
126, 499, 182
Total
Investments
Held
by
Trustees $
132, 105, 358 $
132, 105, 358
146
ITEM 4. 9
CITY MANAGER' S REPORT
SEPTEMBER 9, 2024 CITY COUNCIL REGULAR MEETING
ITEM: TABLE SPONSORSHIP AT THE 22ND ANNUAL
MEMORIAL DINNER & FUNDRAISER TO
COMMEMORATE SEPTEMBER 11, 2001
RECOMMENDATION: Ratify City Participation and Table Sponsorship at the 22nd Annual Memorial Dinner & Fundraiser by
Jass Sangha and Lake Front Resort to Commemorate
September 11, 2001 That Was Held on September 8,
2024 in Tracy, California
BACKGROUND:
An annual memorial dinner to commemorate the events of September 11, 2001 and honor the first responders that lost their lives during that tragedy is held each year by Jass Sangha and Lake Front Resort in Tracy, California. This year' s fundraiser, Association
scheduled for
and
September
the Tracy Police
8, 2024,
Officer' s
aims
Association.
to raise funds for the Tracy Firefighter' s
The Lathrop Police Department and the City of Lathrop is committed to showing our support to our first responder community and deepening the relationships between other agencies in San Joaquin County that the City of Lathrop collaborates and partners with. The table sponsorship highlights the importance of mutual support within the first responder community and can lead to enhanced cooperation, dedication, and trust among the different agencies. Staff reserved a table sponsorship that includes eight ( 8) dinner tickets with City Councilmembers, the Lathrop Police Chief, the Lathrop - Manteca Fire District Fire Chief having first opportunity to fill up the eight seats, and with Lathrop Police Command staff to fill any remaining table vacancy.
Staff recommends that the City Council ratify the table sponsorship at the 22nd Annual Memorial Dinner & Fundraiser to commemorate September 11, 2001 that was held on September 8, 2024 in Tracy, California. There are sufficient funds in the Lathrop Police Department' s adopted FY 24-5 budget to cover the cost of the table sponsorship.
REASON FOR RECOMMENDATION:
The annual memorial dinner and fundraiser is held to commemorate the events of September 11, 2001 and honor the first responders that lost their lives. The proceeds of the fundraiser will go to first responder organizations that the City of Lathrop collaborates and partners with. This sponsorship highlights the importance of mutual support within the first responder community and can lead to enhanced cooperation, dedication, and trust among the different agencies.
147
CITY MANAGER' S REPORT PAGE 2
SEPTEMBER 9, 2024 CITY COUNCIL REGULAR MEETING
TABLE SPONSORSHIP AT THE 22ND ANNUAL MEMORIAL DINNER &
FUNDRAISER TO COMMEMORATE SEPTEMBER 11, 2001
FISCAL IMPACT:
The cost to sponsor a table at the 22nd Annual Memorial Dinner & Fundraiser is 1, 000. There are sufficient funds in the Lathrop Police Department' sadopted FY 24- 25 budget to cover the cost of the table sponsorship.
ATTACHMENTS:
A. Resolution Ratifying City Participation and Table Sponsorship at the 22nd Annual Memorial Dinner and Fundraiser by Jass Sangha and Lake Front Resort to Commemorate September 11, 2001
148
Cari James
Finance ector
CITY MANAGER' S REPORT PAGE 3
SEPTEMBER 9, 2024 CITY COUNCIL REGULAR MEETING
TABLE SPONSORSHIP AT THE 22ND ANNUAL MEMORIAL DINNER &
FUNDRAISER TO COMMEMORATE SEPTEMBER 11, 2001
APPROVALS:
tepThen S
Chief of Police
Date
Y1: 23. 1' Y
Thomas Hedegard Date
9%441101. 4
Deputy City Manager
Date
9/ V, ozy
Salvador Navarrete Date
City Attorney
1 f
c'/ oLq
Stephen J. Salvatore Date
City Manager
149
RESOLUTION NO. 24 -
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LATHROP RATIFYING CITY PARTICIPATION AND TABLE SPONSORSHIP AT THE 22ND ANNUAL
MEMORIAL DINNER & FUNDRAISER BY MSS SANGHA AND LAKE FRONT RESORT TO COMMEMORATE SEPTEMBER 11, 2001 THAT WAS HELD ON SEPTEMBER 8, 2024 IN TRACY, CALIFORNIA
WHEREAS, an annual memorial dinner to commemorate the events of September 11, 2001 and honor the first responders that lost their lives during that tragedy is held each year by Jass Sangha and Lake Front Resort in Tracy, California; and
WHEREAS, this year' sfundraiser, scheduled for September 8, 2024, aims to raise funds for the Tracy Firefighter' s
Association and the Tracy Police Officer' s
Association; and
WHEREAS, the Lathrop Police Department and the City of Lathrop is committed to showing our support to our first responder community and deepening the relationships between other agencies in San Joaquin County that the City of Lathrop collaborates and partners with; and
WHEREAS, table sponsorship highlights the importance of mutual support within the first responder community and can lead to enhanced cooperation, dedication, and trust among the different agencies; and WHEREAS, staff reserved a table sponsorship that includes eight ( 8) dinner tickets with City Councilmembers, the Lathrop Police Chief, the Lathrop - Manteca Fire District Fire Chief having first opportunity to fill up the eight seats, and with Lathrop Police Command staff to fill any remaining table vacancy; and adopted
WHEREAS,
FY 24-5 budget
there
to
are
cover
sufficient
the cost
funds
of the
in
table
the Lathrop
sponsorship.
Police Department' s
NOW THEREFORE, BE IT RESOLVED, that the City Council of the City of Lathrop does hereby ratify the City participation and table sponsorship at the 22nd Annual Memorial Dinner & Fundraiser by Jass Sangha and Lake Front Resort to Commemorate September 11, 2001 that was held on September 8, 2024 in Tracy, California.
150
The foregoing resolution was passed and adopted this 9th day of September 2024, by the following vote of the City Council, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
Sonny Dhaliwal, Mayor
ATTEST: APPROVED AS TO FORM:
Teresa Vargas, City Clerk Salvador Navarrete, City Attorney 151
PAGE LEFT
INTENTIONALLY
BLANK
152
ITEM 4. 10
CITY MANAGER' SREPORT
SEPTEMBER 9, 2024 CITY COUNCIL REGULAR MEETING
ITEM: APPROVAL OF OUT-F- STATE TRAVEL FOR TWO ( 2)
LATHROP POLICE DEPARTMENT STAFF TO DROP- OFF
AND PICK- UP THE SWAT VEHICLE FOR UPFITTING
RECOMMENDATION: Adopt Resolution Approving Out -of -State Travel for two ( 2) Lathrop Police Department Staff to Drop -Off
and Pick -Up the Lathrop Police Department' sSWAT
Vehicle for Upfitting in Reno, Nevada
SUMMARY:
On September 13, 2022, the Lathrop Police Department became a part of the Manteca, Ripon, and Lathrop Special Weapons and Tactics ( SWAT) Regional Team.
The Lathrop Police Department ( LPD) purchased a 2023 Sprinter Cargo Van for LPD SWAT team to use. Staff consulted with various upfitting companies and local law enforcement agencies to upfit the Sprinter van as a SWAT vehicle. Craft Autoworks, LLC. was selected as our SWAT van upfitter.
Craft Autoworks, LLC. is located in Reno, Nevada. As per City Policy, Council approval is required for all out-f- sate travel. There is no additional cost to approve out-fstate travel for two ( 2) LPD staff to drop- off and pick- up the SWAT vehicle for upfitting, as their salaries are already included in the FY 24-5 budget. The transport will be conducted during normal work hours, with no overtime accrued. Staff requests approval for two ( 2) LPD staff members to travel to Reno, Nevada, for the drop- off and pick- up of the SWAT vehicle.
BACKGROUND:
On September 13, 2022, LPD became a part of the Manteca, Ripon, and Lathrop Special Weapons and Tactics ( SWAT) Regional Team. Each agency is responsible for their own SWAT team' s transportation to respond to critical incident calls within the region. It was identified that a Sprinter Van was the best choice to transport the Lathrop SWAT team and their equipment to these critical incident calls. A 2023 Sprinter Cargo Van was purchased for LPD SWAT team to use, and staff consulted with various upfitting companies and other local law enforcement agencies to upfit the Sprinter into a SWAT vehicle. After receiving all the designs and quotes, Craft Autoworks, LLC. was selected as the SWAT van upfitter.
Craft Autoworks, LLC. recommends that a member of the SWAT team be present for the initial walkthrough prior to starting the van build and be present for the final walkthrough during pick- up. This will help ensure that everything is working properly and allow our SWAT officers to learn how the equipment in the vehicle operates. 153
CITY MANAGER' S REPORT PAGE 2
SEPTEMBER 9, 2024 CITY COUNCIL REGULAR MEETING
APPROVAL OF OUT-F- STATE TRAVEL FOR TWO ( 2) LATHROP POLICE
DEPARTMENT STAFF TO DROP- OFF AND PICK- UP THE SWAT VEHICLE FOR
UPFITTING
The drop- off and pick- up date will be coordinated with Craft Autoworks when the equipment for the build has been received. The equipment is estimated to arrive in mid - September 2024 and the vendor has provided a five week build time for completion.
REASON FOR RECOMMENDATION:
Craft Autoworks, LLC. recommends that a member of the SWAT team be present for the initial walkthrough prior to starting the van build and be present for the final walkthrough during pick- up. This will help to ensure that everything is working properly and for our SWAT officers to learn how everything works in the vehicle. Craft Autoworks, LLC. is located in Reno, Nevada, and City Policy requires Council approval for all out-f- sate travel.
FISCAL IMPACT:
There is no additional cost to approve out-f- sate travel for two ( 2) LPD staff to drop- off and pick- up the SWAT vehicle for upfitting, as their salaries are already included in the FY 24-5 budget. The transport will be conducted during normal work hours, with no overtime accrued.
ATTACHMENTS:
A. Resolution Approving Out of State Travel for Two ( 2) Lathrop Police SWAT
Department
Vehicle
Staff
for Upfitting
to Drop
in
Off
Reno,
and
Nevada
Pick - Up the Lathrop Police Department' s
154
CITY MANAGER' S REPORT PAGE 3
SEPTEMBER 9, 2024 CITY COUNCIL REGULAR MEETING
APPROVAL OF OUT-F- STATE TRAVEL FOR TWO ( 2) LATHROP POLICE
DEPARTMENT STAFF TO DROP- OFF AND PICK- UP THE SWAT VEHICLE FOR
UPFITTING
APPROVALS:
en Sealy
Chief of Police
8/ 2002.‘(
Date
Thomas Hedegard Date
Deputy City Manager
Cari James
Finance Director
Date
gJa7 ao. 1
Salvador Navarrete Date
City Attorney
g. 3o -7
Stepran J. Salvatore Date
City Manager
155
RESOLUTION NO. 24 -
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LATHROP APPROVING OUT-F- STATE TRAVEL FOR TWO ( 2) LATHROP POLICE
DEPARTMENT STAFF TO DROP- OFF AND PICK- UP THE LATHROP POLICE
DEPARTMENT' SSWAT VEHICLE FOR UPFITTING IN RENO, NEVADA WHEREAS, on September 13, 2022, the Lathrop Police Department became a part of the Manteca, Ripon, and Lathrop Special Weapons and Tactics ( SWAT) Regional Team; and
WHEREAS, each agency is responsible for their own SWAT team' s transportation to respond to critical incident calls within the region; and WHEREAS, it was identified that a Sprinter Van was the best choice to transport the Lathrop SWAT team and their equipment to these critical incident calls; and
WHEREAS, a 2023 Sprinter Cargo Van was purchased for LPD SWAT team to use, and staff consulted with various upfitting companies and other local law enforcement agencies to upfit the Sprinter into a SWAT vehicle; and WHEREAS, Craft Autoworks, LLC. was selected as the SWAT van upfitter; and WHEREAS, Craft Autoworks, LLC. is located in Reno, Nevada; and WHEREAS, per City Policy, Council approval is required for all out-f- state travel; and
WHEREAS, there is no additional cost to approve out-f- sate travel for two 2) LPD staff to drop- off and pick- up the SWAT vehicle for upfitting, as their salaries are already included in the FY 24-5 budget; and
WHEREAS, the transport will be conducted during normal work hours, with no overtime accrued.
NOW THEREFORE, BE IT RESOLVED, that the City Council of the City of Lathrop does hereby approve the out-f- sate travel for two ( 2) Lathrop Police Department staff to drop- off and pick- up the Lathrop Police Department' s SWAT
vehicle for upfitting in Reno, Nevada.
156
The foregoing resolution was passed and adopted this 9th day of September 2024, by the following vote of the City Council, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
Sonny Dhaliwal, Mayor
ATTEST: APPROVED AS TO FORM:
Teresa Vargas, City Clerk Salvador Navarrete, City Attorney 157
PAGE LEFT
INTENTIONALLY
BLANK
158
ITEM 4. 11
CITY MANAGER' S REPORT
SEPTEMBER 9, 2024 CITY COUNCIL REGULAR MEETING
ITEM: RATIFY PURCHASE OF NINE ( 9) VEHICLES FROM
PHIL LONG FORD OF DENVER, LLC., FOR THE POLICE
DEPARTMENT
RECOMMENDATION: Adopt a Resolution Ratifying the Purchase of Nine 9) Vehicles from Phil Long Ford of Denver, LLC., for
the Police Department
SUMMARY:
The Parks and Recreation Department is responsible for purchasing and maintaining City fleet vehicles and equipment for the purpose of operating facilities, construction of infrastructure, and public safety. Due to the growth of the City and necessary replacement of vehicles that have met their safe life span, new fleet vehicles are needed for staff to continue to efficiently perform Citywide services. Staff is requesting Council approval of the purchase of Nine ( 9) vehicles.
Pursuant to the Lathrop Municipal Code ( LMC) section 2. 36. 050, staff attempted to secure Police Department vehicle quotes from both local and in -State dealerships; however, no local dealers had Police vehicles available on hand. Currently, wait times for Police vehicles are 9 to 18 months. Staff also communicated directly with the Ford Motor Company who confirmed that only one ( 1) dealership on the West Coast, Bud Clary Ford of Longview Washington, had the desired vehicles in stock. Although staff immediately contacted Bud Clary Ford, the vehicles were already under contract with other government agencies. After looking nationwide, staff were only able to find Police vehicles available for purchase from Phil Long Ford of Denver, LLC., in Denver, Colorado. After reviewing the price of these available Police vehicles from Phil Long Ford of Denver, the price aligned with the current market cost even with the additional cost for transportation. Phil Long Ford of Denver, LLC. provided a quote of $ 482, 259for Nine ( 9) Police vehicles.
Vehicle Description Vehicle Cost
Eight ( 8) 2024 Ford Explorer Police Interceptors 374, 480 One ( 1) 2024 Ford F- 150 Responder 52,90
Tax 37,69
Transport 17, 820
Total 482, 259
BACKGROUND:
Due to the growth of the City of Lathrop and the need to replace vehicles that have met their life span, nine ( 9) new vehicles were purchased for the Police Department. 159
CITY MANAGER' SREPORT PAGE 2
SEPTEMBER 9, 2024 CITY COUNCIL REGULAR MEETING
RATIFY PURCHASE OF NINE ( 9) VEHICLES FROM PHIL LONG FORD OF DENVER, LLC., FOR THE POLICE DEPARTMENT
The City of Lathrop Police Department currently utilizes Ford Explorer Police Interceptors ( PIU) and Ford F- 150 Responders as their fleet. On June 14, 2021, the City Council approved the purchase of 11 new police vehicles for the Lathrop Police Department. The PIU vehicle, which is designed based on the Ford Explorer platform, has been built specifically for law enforcement. Ford worked closely with representative of the Los Angeles County Sheriff' s Department and Michigan State Police to design the vehicle to meet the demanding needs of law enforcement. The PIU has been widely selected as a standard vehicle by law enforcement agencies throughout the nation due to its design, safety rating and flexibility for various assignments and purpose. The PIU vehicle was selected as the standard patrol vehicle for the Lathrop Police Department to provide law enforcement services to the City.
The purchase of nine ( 9) new vehicles maintains City fleet necessary to operate at full capacity for the purpose of operating facilities and public safety. The purchase was approved in reference to Lathrop Municipal Code LMC Section 2. 36. 080, Purchasing System Emergency Procedures. The purchasing procedures may be eliminated for the following reasons as determined by the Department Head. " To efficiently and timely maintain essential public services". The purchase of nine ( 9) new vehicles from out of state was necessary due to short supply of the ( PIU), a combination of high demand and global supply chain constraints, and the need to obtain the vehicles in a timely manner to maintain essential public services to the City.
RECOMMENDATION:
Staff recommends Council ratify the purchase of nine ( 9) vehicles for the Police Department.
FISCAL IMPACT:
The total cost for the nine ( 9) vehicles is $ 482, 259. Sufficient funds were available within the approved biennial budget for Fiscal Year 2023/4 that was carried forward for the purchase of (9) vehicles for the Police Department.
ATTACHMENTS:
A. A Resolution of the City Council of the City of Lathrop Ratifying the Purchase of Nine ( 9) Vehicles from Phil Long Ford of Denver, LLC., for the Police Department
B. Phil Long Ford of Denver, LLC., Quote for Eight ( 8) 2024 Ford Explorer Police Interceptors and One ( 1) Ford F- 150 Responder
160
CITY MANAGER' S REPORT PAGE 3
SEPTEMBER 9, 2024 CITY COUNCIL REGULAR MEETING
RATIFY PURCHASE OF NINE ( 9) VEHICLES FROM PHIL LONG FORD OF DENVER, LLC., FOR THE POLICE DEPARTMENT
APPROVALS:
Director of Parks, Recreation, and Fleet
C: ri Ja ; s
Directo f Finance
en Seal
Chief of Police
3J i-124.›
Date
Date
WY/ 20( 9-6/
1/ 4//, 20 -a_cr
Date
Thomas Hedegard Date
Deputy City Manager
MichaeVKing Date
Assistant City Manager
qAlb- o-z- I
Salvador Navarrete Date
City Attorney
T 4)
Stephen J. a store
City Manager
9/ di/ vat/
Date
161
RESOLUTION NO. 24-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LATHROP RATIFYING THE PURCHASE OF NINE ( 9) VEHICLES FROM PHIL LONG FORD OF DENVER, LLC., FOR THE POLICE DEPARTMENT
WHEREAS, due to growth of the City of Lathrop and the need to replace vehicles that have met their usable life span, the Police Department was in need of nine ( 9) new vehicles; and
WHEREAS, staff requested quotes from a multitude of local and in -state dealerships, however, none had the desired vehicles available; and WHEREAS, after looking nationwide, staff found Phil Long Ford of Denver, LLC., in Denver, Colorado, was able to provide a quote for the desired in- stock Police vehicles; and
WHEREAS, the quote price from Phil Long Ford of Denver, LLC., aligned with current market cost, despite an additional cost for transportation of the vehicles to Lathrop; and
WHEREAS, the City Manager approved the purchase of nine ( 9) vehicles in order to maintain the necessary fleet to operate at full capacity for the purpose of operating facilities and public safety
WHEREAS, staff is requests Council ratify the purchase of the following vehicles from Phil Long Ford of Denver, LLC.:
Vehicle Description
Eight ( 8) 2024 Ford Explorer Police
Interceptors and One ( 1) 2024 Ford F- 150
Responder
Vehicle Cost
482, 259
WHEREAS, the total cost for nine ( 9) vehicles is $ 482, 259 and sufficient funds were available within the approved biennial budget for Fiscal Year 2023/4that was then carried forward to the current Fiscal Year 2024/5 for the purchase of ( 9) vehicles for the Police Department.
NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Lathrop does hereby ratify the purchase of nine ( 9) vehicles from Phil Long Ford of Denver, LLC., for a total cost of $ 482, 259.
162
The foregoing resolution was passed and adopted this 9th day of September 2024, by the following vote of the City Council, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
Sonny Dhaliwal, Mayor
ATTEST: APPROVED AS TO FORM:
Teresa Vargas, City Clerk Salvador Navarrete, City Attorney 163
ATTACHMENT
Q
PHILIONG
QUOTE TO: City of Lathrop
ATTN: Todd Sebastian
QUOTE NUMBER
QUOTE DATE
Agency PO #.
CES PO#
TERMS
SALES REP
SHIPPED VIA
F. O. B.
PREPAID or COLLECT
062724- 1
August 14, 2024
Due on Receipt
Herman Sanchez
Driver
PRICE AGREEMENT: T. I.P.S. USA ( The Interlocal Purchasing System) # 220304 2024 Ford Police Vehicles Exterior: Agate Black
QUANTITY DESCRIPTION UNIT PRICE AMOUNT
8 Ford Utility Interceptor, Mid Size, four Door, AWD Police Pursuit Rated 48, 310. 0 386, 480. 0 Incl. Dark Car Feature, Driver Side Spotlight, Backup Camera, Police Engine Idle, Reverse Sensing, BLIS, Global Unlock, Keyless Entry) 8 Available Government Discount ( For Police Explorer) 1, 500. 00) 12, 000.) 1 2024 F150 Police Responder 4x4 5.' Box 145" WB XL ( W1 P) 54, 890. 0 54, 890. 0 1 Available Government Discount ( For Responder) 2, 300. 00) 2, 300. 00) 9 Transport To: 390 Towne Centre Dr. 1, 980. 0 17, 820. 0 Lathrop, CA 95330
Explorers will not come with hubcaps due to Manufacturer No longer making hubcaps**
Additional Information:
Proposal valid for 30 Days
444, 890. 0
444, 890. 0
DIRECT ALL INQUIRIES TO: Phil Long Ford of Denver Total Herman Sanchez 7887 W. Tufts Ave. AMOUNT
email: hsanchez@phillong. com
Denver, CO 80123
THANK YOU FOR YOUR BUSINESS!
164
ITEM 4. 12
CITY MANAGER' S REPORT
SEPTEMBER 9, 2024 CITY COUNCIL REGULAR MEETING
ITEM: APPROVE EMERGENCY SERVICE CONTRACTS WITH
NEXTGEN ALPHA UPFITTING AND MANTECA
COLLISION PROS FOR POLICE VEHICLE UPFITTING
AND PAINT SERVICES
RECOMMENDATION: Council to Consider the Following:
1. Adopt Resolution to Approve Emergency Service
Contract with NextGen Alpha Upfitting for the
Purchase and Installation of Police Vehicle
Equipment
2. Adopt Resolution to Approve Emergency Service
Contract with Manteca Collision Pros for Autobody
Paint and Decal Services for Police Vehicles
SUMMARY:
The Parks and Recreation Department is responsible for the purchase and maintenance of a variety of fleet vehicles and equipment for the purpose of operating City facilities, and related infrastructure, and public safety. Due to the growth of the City and the need to replace vehicles that have met their service life span, new police fleet vehicles are needed for staff to continue to efficiently perform Citywide services.
Staff is requesting Council approval of two ( 2) service contracts to provide upfitting, autobody paint, and decals for Police vehicles.
Currently, 20 Police vehicles will need upfitting with police equipment, 15 of the 20 vehicles need decaled, and 12 of the 20 vehicles need auto body paint. The upfitting process includes the installation of emergency lights and other applicable auxiliary equipment needed for the police vehicles to enhance officer safety and productivity.
The proposed contracts would allow NextGen Alpha Upfitting to provide and install the police equipment and Manteca Collision Pros to provide the autobody paint and decal services.
BACKGROUND:
Due to the growth of the City and the need to replace vehicles that have met their service life span, new police fleet vehicles are needed for staff to continue to efficiently perform Citywide services. Staff is requesting Council approval of two ( 2) service contracts to provide upfitting, autobody paint, and decals for Police vehicles.
The proposed contracts pursuant to LMC 2. 36. 080, would allow NextGen Alpha Upfitting to provide and install the police equipment and Manteca Collision Pros to provide the autobody painting and decal services. Approving the proposed contracts pursuant to LMC 2. 36. 080 will allow the City to avoid interruptions and gaps in our emergency services fleet operations.
165
CITY MANAGER' S REPORT PAGE 2
SEPTEMBER 9, 2024 CITY COUNCIL REGULAR MEETING
APPROVE CONTRACTS WITH NEXTGEN ALPHA UPFITTING AND MANTECA
COLLISION PROS FOR POLICE VEHICLE UPFITTING AND PAINT SERVICES FISCAL IMPACT:
The total cost for upfitting 20 Police vehicles, of which 15 will be decaled, and 12 will be painted, is $ 778,99.
NextGen Upfitting for Purchase and Install Upfitting Equipment in the amount of $ 703, 406, of which $ 178, 902 was previously budgeted/ allocated by Council in May of 2024, resulting in a balance of $ 524,04
Manteca Collision Pros for Autobody Painting and Decals $ 75, 393 Sufficient funds are available within the Council approved biennial budget for Fiscal Year 2023/4 that were carried forward for these two ( 2) contracts.
ATTACHMENTS:
A. Resolution to Approve NextGen Alpha Upfitting for the Purchase of Upfitting Equipment for Police Vehicles
B. Resolution to Approve Manteca Collision Pros for Autobody Paint and Decal Services for Police Vehicles
C. Emergency Service Contract with NextGen Alpha Upfitting for the Purchase and Installation of Police Vehicle Equipment for Twenty ( 20) Vehicles for the City of Lathrop Police Department
D. Emergency Service Contract with Manteca Collision Pros for Autobody Paint and Decal Services for Fifteen ( 15) Vehicles for the City of Lathrop Police Department
166
CITY MANAGER' SREPORT PAGE 3
SEPTEMBER 9, 2024 CITY COUNCIL REGULAR MEETING
APPROVE CONTRACTS WITH NEXTGEN ALPHA UPFITTING AND MANTECA
COLLISION PROS FOR POLICE VEHICLE UPFITTING AND PAINT SERVICES APPROVALS:
Todd Sebastian
Director of Parks, Recreation, and Fleet
Cari Jam
Director oil Fihance
en S
Chief of Police
Date
9110 dpo
Date
4472- y.
Date
g- .?-401-/ V
Salvador Navarrete Date
City Attorney
Thomas Hedegard Date
Deputy City Manager
cog -
Toy/
9 k/?, o2&.
Micha King Date
Assistant City Manager
V/ 2. 9Z
Stephen J. Salvatore Date
City Manager
167
RESOLUTION NO. 24-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LATHROP TO
APPROVE AN EMERGENCY SERVICE CONTRACT WITH NEXTGEN ALPHA
UPFITTING FOR THE PURCHASE AND INSTALLATION OF POLICE VEHICLE EQUIPMENT FOR TWENTY ( 20) VEHICLES FOR THE CITY OF LATHROP
POLICE DEPARTMENT
WHEREAS, twenty ( 20) new police vehicles need to be outfitted with police equipment to avoid interruptions and gaps in our emergency services fleet operations, and NextGen Alpha Upfitting promises to deliver approved specifications of the City of Lathrop Police Department fleet in a timely manner; and WHEREAS, staff propose to utilize NextGen Alpha Upfitting for the upfitting of police vehicles because they are familiar with our Police vehicle builds and willing to render such services efficiently and in timely manner to maintain essential public services; and
WHEREAS, the proposed contract with NextGen Alpha Upfitting for the vehicles is for an amount not to exceed $ 703, 406; and WHEREAS, sufficient funds are available within the Council approved biennial budget for Fiscal Year 2023/4 that were carried forward for this contract' s consideration.
WHEREAS staff is requesting Council approve the emergency service contract for NextGen Alpha Upfitting to purchase and install upfitting equipment for twenty 20) police vehicles.
NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Lathrop does hereby approve the emergency service contract with NextGen Alpha Upfitting, at a total cost not to exceed $ 703, 406.
168
The foregoing resolution was passed and adopted this 9th day of September 2024, by the following vote of the City Council, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
Sonny Dhaliwal, Mayor
ATTEST: APPROVED AS TO FORM:
Teresa Vargas, City Clerk Salvador Navarrete, City Attorney 169
ATTACHMENT
6 RESOLUTION NO. 24-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LATHROP TO
APPROVE AN EMERGENCY SERVICE CONTRACT WITH MANTECA COLLISION PROS TO PROVIDE AND INSTALL DECALS FOR FIFTEEN ( 15) POLICE VEHICLES, AND PAINT TWELVE ( 12) POLICE VEHICLES
WHEREAS, fifteen ( 15) new police vehicles need decals and twelve ( 12) need autobody paint per the approved specifications of the City of Lathrop Police Department fleet and Manteca Collision Pros promises to deliver approved specifications in timely manner to avoid interruptions and gaps in our emergency services fleet operations; and
WHEREAS, City staff propose to utilize Manteca Collision Pros for the autobody painting and decals of police vehicles because they are familiar with our Police vehicle builds and willing to render such services efficiently and in a timely manner to maintain essential public services; and
WHEREAS, the proposed purchase with Manteca Collision Pros for autobody paint and decals is for an amount not to exceed $ 75, 393; and WHEREAS, sufficient funds are available within the Council approved biennial budget
consideration.
for Fiscal Year 2023/4 that were carried forward for this contract' s WHEREAS, staff is requesting Council authorize the purchase of autobody paint and decals from Manteca Collision Pros for the police vehicles.
NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Lathrop does hereby approve the emergency service contract with Manteca Collision Pros for a total cost not to exceed $ 75, 393.
170
The foregoing resolution was passed and adopted this 9th day of September 2024, by the following vote of the City Council, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
Sonny Dhaliwal, Mayor
ATTEST:
Salvador Navarrete, City Attorney Teresa Vargas, City Clerk APPROVED AS TO FORM:
171
ATTACHMENT
C _
CITY OF LATHROP
EMERGENCY SERVICE CONTRACT WITH NEXTGEN ALPHA
UPFITTING FOR THE PURCHASE AND INSTALLATION OF POLICE
VEHICLE EQUIPMENT FOR TWENTY ( 20) VEHICLES FOR THE CITY OF
LATHROP POLICE DEPARTMENT
THIS AGREEMENT, dated for convenience this day of September 2024 is by and between NEXTGEN ALPHA UPFITTING (" CONTRACTOR") and the CITY OF LATHROP, a California municipal corporation (" CITY").
RECITALS:
WHEREAS, CONTRACTOR is specially trained, experienced, and competent to perform installation services of police vehicle equipment, which will be required by this agreement; and
WHEREAS, the Lathrop Police Department ( LPD) has an urgent need for new vehicles a due to the growth of the City and replacement of vehicles that have met their life span which hinders LPD' s ability to ensure and maintain essential police services; and WHEREAS, CONTRACTOR is familiar with LPD' sPolice vehicle builds and is able and willing to render such purchase and installation of police vehicle equipment by December 1, 2024, in an effort to efficiently and timely maintain essential public services pursuant to LMC 2. 36. 080; and
WHEREAS, pursuant to LMC 2. 36. 080, purchasing procedures may be eliminated in emergency situations to efficiently and timely maintain essential public services for the preservation of public health, safety, and welfare of the community; and NOW, THEREFORE, CONTRACTOR and the CITY agree as follows:
AGREEMENT
1) Scope of Service
CONTRACTOR agrees to perform services in accordance with the scope of work and fee proposal provided by the CONTRACTOR, attached hereto as Exhibit "A", and incorporated herein by reference. CONTRACTOR agrees to diligently perform these services in accordance with the upmost standards of its profession and to CITY' ssatisfaction by December 31, 2024.
172
CITY OF LATHROP — EMERGENCY CONTRACT WITH NEXTGEN ALPHA UPFITTING
FOR THE PURCHASE AND INSTALLATION OF POLICE VEHICLE EQUIPMENT 2) Compensation
CITY hereby agrees to pay CONTRACTOR a sum - not -to -exceed $ 703, 406 for the purchase and installation of police vehicle equipment as set forth in Exhibit " A".
CONTRACTOR shall be paid within thirty ( 30) days of receipt of billings containing all information contained in Paragraph 5 below. In no event shall CONTRACTOR be entitled to compensation for work not included in Exhibit " A" unless a written change order or authorization is executed describing the extra work and payment terms prior to the commencement of the work.
3) Effective Date and Term
The effective date of this Agreement is September , 2024 and it shall terminate no later than December 31, 2024.
4) Independent Contractor Status
It is expressly understood and agreed by both parties that CONTRACTOR, while engaged in carrying out and complying with any of the terms and conditions of this Agreement, is an independent contractor and not an employee of the CITY.
CONTRACTOR expressly warrants not to represent, at any time or in any manner, that CONTRACTOR is an employee of the CITY.
5) Billings
CONTRACTOR' Sbills shall include a list of all tasks, a total amount due, the amounts previously billed, and the net amount due on the invoice. Except as specifically authorized by CITY, CONTRACTOR shall not bill CITY for duplicate services performed by more than one person. In no event shall CONTRACTOR submit any billing for an amount in excess of the maximum amount of compensation provided in section ( 2) for either task or for the entire Agreement, unless modified by a properly executed change order.
6) Advice and Status Reporting
CONTRACTOR shall provide the CITY with timely reports, orally or in writing, of all significant developments arising during performance of its services hereunder, and shall furnish to CITY such information as is necessary to enable CITY to monitor the performance of this Agreement.
7) Assignment and Subcontracting
It is recognized by the parties hereto that a substantial inducement to CITY for entering into this Agreement was, and is, the professional reputation and competence of CONTRACTOR. Neither this Agreement nor any interest therein may be assigned by CONTRACTOR without the prior written approval of CITY' S
173
CITY OF LATHROP — EMERGENCY CONTRACT WITH NEXTGEN ALPHA UPFITTING
FOR THE PURCHASE AND INSTALLATION OF POLICE VEHICLE EQUIPMENT City Manager. CONTRACTOR shall not subcontract any portion of the performance contemplated and provided for herein, other than the subcontractors noted in the proposal, without prior written approval of the CITY' S City Manager. 8) Assignment of Personnel
CONTRACTOR shall assign only competent personnel to perform services pursuant to this Agreement. If CITY asks CONTRACTOR to remove a person assigned to the work called for under this Agreement, CONTRACTOR agrees to do so immediately, regardless of the reason, or the lack of a reason, according to the CITY' Srequest.
9) Insurance
On or before beginning any of the services or work called for by any term of this Agreement, CONTRACTOR, at its own cost and expense, shall carry, maintain for the duration of the Agreement, and provide proof thereof that is acceptable to the CITY the insurance specified in subsections ( a) through ( c) below with insurers and under forms of insurance satisfactory in all respects to the CITY.
CONTRACTOR shall not allow any subcontractor to commence work on any subcontract until all insurance required of the CONTRACTOR has also been obtained for the subcontractor. Verification of this insurance shall be submitted and made part of this Agreement prior to execution.
a) Workers' Compensation. CONTRACTOR shall, at
CONTRACTOR' Ssole cost and expense, maintain Statutory
Workers' Compensation Insurance and Employer' s Liability Insurance for any and all persons employed directly or indirectly by CONTRACTOR. Said Statutory Workers' Compensation Insurance and Employer' sLiability Insurance shall be provided with limits of not less than one million dollars ($ 1, 000,0). In the alternative, CONTRACTOR may rely on a self- insurance program to meet these requirements provided that the program of self- insurance complies fully with the provisions of the California Labor Code. The insurer, if insurance is provided, or the CONTRACTOR, if a program of selfinsurance is provided, shall waive all rights of subrogation against the CITY for loss arising from work performed under this Agreement. b) Commercial General and Automobile Liability Insurance.
CONTRACTOR, at CONTRACTOR' Sown cost and expense, shall maintain commercial general and automobile liability insurance for the period covered by this Agreement in an amount not less than one million dollars ($ 1, 000,00) per occurrence, combined single limit coverage for risks associated with the work contemplated by this Agreement. If Commercial General Liability Insurance or an Automobile Liability form or other form with a general aggregate limit
174
CITY OF LATHROP — EMERGENCY CONTRACT WITH NEXTGEN ALPHA UPFITTING
FOR THE PURCHASE AND INSTALLATION OF POLICE VEHICLE EQUIPMENT is used, either the general aggregate limit shall apply separately to the work to be performed under this Agreement or the general aggregate limit shall be at least twice the required occurrence limit.
Such coverage shall include but shall not be limited to, protection against claims arising from bodily and personal injury, including death resulting therefrom, and damage to property resulting from activities contemplated under this Agreement, including the use of owned and non -owned automobiles.
Coverage shall be at least as broad as Insurance Services Office Commercial General Liability occurrence form CG 0001 and Insurance Services Office Automobile Liability form CA 0001 Code 1 any auto).
Each of the following shall be included in the insurance coverage or added as an endorsement to the policy:
i) CITY, its officers, employees, and volunteers are to be covered as additional insured with coverage from ISO form CG 20 10 or its equivalent. The coverage shall contain no special limitations on the scope of protection afforded to CITY, its officers, employees, agents, or volunteers
ii) The insurance shall cover on an occurrence or an accident basis, and not on a claim made basis.
iii) An endorsement must state that coverage is primary insurance and that no other insurance affected by the CITY will be called upon to contribute to a loss under the coverage. iv) Any failure of CONTRACTOR to comply with reporting
provisions of the policy shall not affect coverage provided to CITY and its officers, employees, agents, and volunteers. v) Insurance is to be placed with California -admitted insurers with a Best' srating of no less than A: VII.
vi) Notice of cancellation or non -renewal must be received by CITY at least thirty days prior to such change.
c) Notice of Reduction in Coverage. In the event that any coverage required under subsections ( a), (b), or ( c) of this section of the Agreement is reduced, limited, or materially affected in any other manner, CONTRACTOR shall provide written notice to CITY at CONTRACTOR' Searliest possible opportunity and in no case later than five days after CONTRACTOR is notified of the change in
175
CITY OF LATHROP — EMERGENCY CONTRACT WITH NEXTGEN ALPHA UPFITTING
FOR THE PURCHASE AND INSTALLATION OF POLICE VEHICLE EQUIPMENT coverage.
d) In addition to any other remedies CITY may have if CONTRACTOR fails to provide or maintain any insurance policies or policy endorsements to the extent and within the time herein required, CITY may, at its sole option:
i) Obtain such insurance and deduct and retain the amount of the premiums for such insurance from any sums due under the Agreement;
ii) Order CONTRACTOR to stop work under this Agreement or withhold any payment which becomes due to CONTRACTOR
hereunder, or both stop work and withhold any payment, until CONTRACTOR demonstrates compliance with the
requirements hereof;
iii) Terminate this Agreement.
Exercise of any of the above remedies, however, is an alternative to other remedies CITY may have and is not the exclusive remedy for CONTRACTOR' Sbreach.
10) Indemnification - CONTRACTOR' SResponsibility
Notwithstanding anything contrary to anything contained in the Agreement CONTRACTOR agrees to defend and hold City of Lathrop harmless from and against any and all loss, cost, liability and expense from third party claims where any equipment provided and installed by CONTRACTOR hereunder is the sole and direct cause of any property damage or personal injury ( as opposed to cases where failure or malfunction of the system merely contributes to a loss or injury started from another source), or where an employee of CONTRACTOR causes personal injury or property damage in performing the installation or servicing of equipment while on User' s
premises or where the loss or injury is caused by
negligent acts or omissions of installers or maintenance personnel of CONTRACTOR, constituting intentional and willful misconduct. User shall indemnify, defend, protect and hold CONTRACTOR harmless from and against any and all property loss claims including all third party property losses except where any equipment provided and installed by CONTRACTOR hereunder is the sole and direct cause of any property damage or personal injury ( as opposed to cases where failure or malfunction of the system merely contributes to a loss or injury started from another source), or where an employee of CONTRACTOR causes personal injury or property damage in performing the installation or servicing of equipment while on User' s premises or where the loss or injury is caused by negligent acts or omissions of installers or maintenance personnel of CONTRACTOR, constituting intentional and willful misconduct. For any third -party
176
CITY OF LATHROP — EMERGENCY CONTRACT WITH NEXTGEN ALPHA UPFITTING
FOR THE PURCHASE AND INSTALLATION OF POLICE VEHICLE EQUIPMENT losses where CONTRACTOR' sactions while on site are the sole and direct cause of aforesaid loss vs equipment or monitoring failure, CONTRACTOR has the duty to defend as set forth in Section 2778 of the California Civil Code. 11) Licenses
If a license of any kind, which term is intended to include evidence of registration, is required of CONTRACTOR, its employees, agents, or subcontractors by federal or state law, CONTRACTOR warrants that such license has been obtained, is valid and in good standing, and CONTRACTOR shall keep it in effect at all times during the term of this Agreement, and that any applicable bond has been posted in accordance with all applicable laws and regulations.
12) Business Licenses
CONTRACTOR shall obtain and maintain a CITY of Lathrop Business License until all Agreement services are rendered and accepted by the CITY. 13) Termination
Either CITY or CONTRACTOR may cancel this Agreement upon 30 days written notification to the other party. In the event of termination, the CONTRACTOR shall be entitled to compensation for services performed to the effective date of termination; provided, however, that the CITY may condition payment of such compensation upon CONTRACTOR' Sdelivery to the CITY of any or all documents, photographs, computer software, video and audio tapes, and other materials provided to CONTRACTOR or prepared by or for CONTRACTOR or the CITY in connection with this Agreement.
14) Funding
CONTRACTOR agrees and understands that renewal of this agreement in subsequent years is contingent upon action by the City Council consistent with the appropriations limits of Article XIII ( B) of the California Constitution and that the Council may determine not to fund this agreement in subsequent years. 15) Notices
All contracts, appointments, approvals, authorizations, claims, demands, Change Orders, consents, designations, notices, offers, requests and statements given by either party to the other shall be in writing and shall be sufficiently given and served upon the other party if ( 1) personally served, (2) sent by the United States mail, postage prepaid, (3) sent by private express delivery service, or (4) in the case of a facsimile transmission, if sent to the telephone FAX number set forth below during regular business hours of the receiving party and followed with two (2) Days by delivery of a hard copy of the material sent by facsimile transmission. Personal
177
CITY OF LATHROP — EMERGENCY CONTRACT WITH NEXTGEN ALPHA UPFITTING
FOR THE PURCHASE AND INSTALLATION OF POLICE VEHICLE EQUIPMENT service shall include, without limitation, service by delivery and service by facsimile transmission.
To City: City of Lathrop
City Clerk
390 Towne Centre
Lathrop, CA 95330
Copy to: City of Lathrop
Parks, Recreation, and Fleet Services Dept.
390 Towne Centre Drive
Lathrop, CA 95330
To Contractor:
MAIN: (209) 941- 7370
FAX: (209) 941- 7449
NextGen Alpha Upfitting
8400 Carbide Ct., Suite A
Sacramento, CA 95828
Phone: ( 916) 423- 5053
16) Miscellaneous
a) Consent. Whenever in this Agreement the approval or consent of a party is required, such approval or consent shall be in writing and shall be executed by a person having the express authority to grant such approval or consent.
b) Controlling Law. The parties agree that this Agreement shall be governed and construed by and in accordance with the Laws of the State of California.
c) Definitions. The definitions and terms are as defined in these specifications.
d) Force Majeure. Neither party shall be deemed to be in default on account of any delay or failure to perform its obligations under this Agreement, which directly results from an Act of God or an act of a superior governmental authority.
e) Headings. The paragraph headings are not a part of this Agreement and shall have no effect upon the construction or interpretation of any part of this Agreement.
f) Incorporation of Documents. All documents constituting the
178
CITY OF LATHROP — EMERGENCY CONTRACT WITH NEXTGEN ALPHA UPFITTING
FOR THE PURCHASE AND INSTALLATION OF POLICE VEHICLE EQUIPMENT Agreement documents described in Section 1 hereof and all documents which may, from time to time, be referred to in any duly executed amendment hereto are by such reference incorporated in the Agreement and shall be deemed to be part of this Agreement. g) Integration. This Agreement and any amendments hereto between the parties constitute the entire Agreement between the parties concerning the Project and Work, there are no other prior oral or written agreements between the parties that are not incorporated in this Agreement.
Modification of Agreement. This Agreement shall not be modified or be binding upon the parties unless such modification is agreed to in writing and signed by the parties.
Provision. Any agreement, covenant, condition, clause, qualification, restriction, reservation, term or other stipulation in the Agreement shall define or otherwise control, establish or limit the performance required or permitted or to be required of or permitted by either party.
All provisions, whether covenants or conditions, shall be deemed to be both covenants and conditions.
j) Severability. If a court of competent jurisdiction finds or rules that any provision of this Agreement is void or unenforceable, the provisions of this Agreement not so affected shall remain in full force and effect.
k) Status of CONTRACTOR. In the exercise of rights and obligations under this Agreement, CONTRACTOR acts as an independent contractor and not as an agent or employee of CITY.
CONTRACTOR shall not be entitled to any rights and benefits accorded or accruing to the City Council members, officers or employees of CITY, and CONTRACTOR expressly waives any and all claims to such right and benefits.
Successors and Assigns. The provisions of this Agreement shall inure to the benefit of, and shall apply to and bind, the successors and assigns of the parties.
Time of the Essence. Time is of the essence of this Agreement and each of its provisions. In the calculation of time hereunder, the time in which an act is to be performed shall be computed by excluding the first Day and including the last. If the time in which an act is to be performed falls on a Saturday, Sunday or any Day observed as a legal holiday by CITY, the time for performance shall be extended to the following Business Day.