Agenda packet — Los Banos City Council, June 19, 2024 (part 3 of 3)

material misstatements or noncompliance may not be detected by us, even though the audit is properly planned and performed in accordance with GAAS and Government Auditing Standards. In addition, an audit is not designed to detect immaterial misstatements or violations of laws or governmental regulations that do not have a direct and material effect on the financial statements or on major programs. However, we will inform the appropriate level of management of any material errors, any fraudulent financial reporting, or misappropriation of assets that come to our attention. We will also inform the appropriate level of management of any violations of laws or governmental regulations that come to our attention, unless clearly inconsequential. We will include such matters in the reports required for a Single Audit. Our responsibility as auditors is limited to the period covered by our audit and does not extend to any later periods for which we are not engaged as auditors.

We will also conclude, based on the audit evidence obtained, whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the government's ability to continue as a going concern for a reasonable period of time.

Our procedures will include tests of documentary evidence supporting the transactions recorded in the accounts, tests of the physical existence of inventories, and direct confirmation of receivables and certain assets and liabilities by correspondence with selected individuals, funding sources, creditors, and financial institutions. We will also request written representations from your attorneys as part of the engagement.

We have identified the following significant risks of material misstatement as part of our audit planning:
• Management override of controls
• Improper revenue recognition due to fraud
Our audit of the financial statements does not relieve you of your responsibilities.

Audit Procedures-Internal Control
We will obtain an understanding of the government and its environment, including the system of internal control, sufficient to identify and assess the risks of material misstatement of the financial statements, whether due to error or fraud, and to design and perform audit procedures responsive to those risks and obtain evidence that is sufficient and appropriate to provide a basis for our opinions. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentation, or the override of internal control. Tests of controls may be performed to test the effectiveness of certain controls that we consider relevant to preventing and detecting errors and fraud that are material to the financial statements and to preventing and detecting misstatements resulting from illegal acts and other noncompliance matters that have a direct and material effect on the financial statements.

Our tests, if performed, will be less in scope than would be necessary to render an opinion on internal control and, accordingly, no opinion will be expressed in our report on internal control issued pursuant to Government Auditing Standards.

As required by the Uniform Guidance, we will perform tests of controls over compliance to evaluate the effectiveness of the design and operation of controls that we consider relevant to preventing or detecting material noncompliance with compliance requirements applicable to each major federal award program.

However, our tests will be less in scope than would be necessary to render an opinion on those controls and, accordingly, no opinion will be expressed in our report on internal control issued pursuant to the Uniform Guidance.

An audit is not designed to provide assurance on internal control or to identify significant deficiencies or material weaknesses. Accordingly, we will express no such opinion. However, during the audit, we will communicate to management and those charged with governance internal control related matters that are required to be communicated under AICPA professional standards, Government Auditing Standards, and the Uniform Guidance.

Audit Procedures-Compliance
As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we will perform tests of the City's compliance with provisions of applicable laws, regulations, contracts, and agreements, including grant agreements. However, the objective of those procedures will not be 2024

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to provide an opinion on overall compliance, and we will not express such an opinion in our report on compliance issued pursuant to Government Auditing Standards.

The Uniform Guidance requires that we also plan and perform the audit to obtain reasonable assurance about whether the auditee has complied with federal statutes, regulations, and the terms and conditions of federal awards applicable to major programs. Our procedures will consist of tests of transactions and other applicable procedures described in the 0MB Compliance Supplement for the types of compliance requirements that could have a direct and material effect on each of the City's major programs. For federal programs that are included in the Compliance Supplement, our compliance and internal control procedures will relate to the compliance requirements that the Compliance Supplement identifies as being subject to audit. The purpose of these procedures will be to express an opinion on the City's compliance with requirements applicable to each of its major programs in our report on compliance issued pursuant to the Uniform Guidance.

Responsibilities of Management for the Financial Statements and Single Audit Our audit will be conducted on the basis that you acknowledge and understand your responsibility for (1) designing, implementing, establishing, and maintaining effective internal controls relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error, including internal controls over federal awards, and for evaluating and monitoring ongoing activities to help ensure that appropriate goals and objectives are met; (2) following laws and regulations; (3) ensuring that there is reasonable assurance that government programs are administered in compliance with compliance requirements; and (4) ensuring that management and financial information is reliable and properly reported.

Management is also responsible for implementing systems designed to achieve compliance with applicable laws, regulations, contracts, and grant agreements. You are also responsible for the selection and application of accounting principles; for the preparation and fair presentation of the financial statements, schedule of expenditures of federal awards, and all accompanying information in conformity with accounting principles generally accepted in the United States of America; and for compliance with applicable laws and regulations (including federal statutes), rules, and the provisions of contracts and grant agreements (including award agreements). Your responsibilities also include identifying significant contractor relationships in which the contractor has responsibility for program compliance and for the accuracy and completeness of that information.

You are also responsible for making drafts of financial statements, schedule of expenditures of federal awards, all financial records, and related information available to us; for the accuracy and completeness of that information (including information from outside of the general and subsidiary ledgers); and for the evaluation of whether there are any conditions or events, considered in the aggregate, that raise substantial doubt about the government's ability to continue as a going concern for the 12 months after the financial statements date or shortly thereafter (for example, within an additional three months if currently known). You are also responsible for providing us with (1) access to all information of which you are aware that is relevant to the preparation and fair presentation of the financial statements, such as records, documentation, identification of all related parties and all related-party relationships and transactions, and other matters; (2) access to personnel, accounts, books, records, supporting documentation, and other information as needed to perform an audit under the Uniform Guidance; (3) additional information that we may request for the purpose of the audit; and (4) unrestricted access to persons within the government from whom we determine it necessary to obtain audit evidence. At the conclusion of our audit, we will require certain written representations from you about the financial statements; schedule of expenditures of federal awards; federal award programs; compliance with laws, regulations, contracts, and grant agreements; and related matters.

Your responsibilities include adjusting the financial statements to correct material misstatements and confirming to us in the management representation letter that the effects of any uncorrected misstatements aggregated by us during the current engagement and pertaining to the latest period presented are immaterial, both individually and in the aggregate, to the financial statements of each opinion unit taken as a whole.

You are responsible for the design and implementation of programs and controls to prevent and detect fraud, and for informing us about all known or suspected fraud affecting the government involving (1) management, (2) employees who have significant roles in internal control, and (3) others where the fraud could have a material effect on the financial statements. Your responsibilities include informing us of your knowledge of any allegations of fraud or suspected fraud affecting the government received in communications from employees, former employees, granters, regulators, or others. In addition, you are responsible for identifying and ensuring 2024

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that the government complies with applicable laws, regulations, contracts, agreements, and grants. You are also responsible for taking timely and appropriate steps to remedy fraud and noncompliance with provisions of laws, regulations, contracts, and grant agreements that we report. Additionally, as required by the Uniform Guidance, • it is management's responsibility to evaluate and monitor noncompliance with federal statutes, regulations, and the terms and conditions of federal awards; take prompt action when instances of noncompliance are identified including noncompliance identified in audit findings; promptly follow up and take corrective action on reported audit findings; and prepare a summary schedule of prior audit findings and a separate corrective action plan.

You are responsible for identifying all federal awards received and understanding and complying with the compliance requirements and for the preparation of the schedule of expenditures of federal awards (including notes and noncash assistance received, and COVID-19-related concepts, such as lost revenues, if applicable) in conformity with the Uniform Guidance. You agree to include our report on the schedule of expenditures of federal awards in any document that contains, and indicates that we have reported on, the schedule of expenditures of federal awards. You also agree to include the audited financial statements with any presentation of the schedule of expenditures of federal awards that includes our report thereon. Your responsibilities include acknowledging to us in the written representation letter that (1) you are responsible for presentation of the schedule of expenditures of federal awards in accordance with the Uniform Guidance; (2) you believe the schedule of expenditures of federal awards, including its form and content, is stated fairly in accordance with the Uniform Guidance; (3) the methods of measurement or presentation have not changed from those used in the prior period (or, if they have changed, the reasons for such changes); and (4) you have disclosed to us any significant assumptions or interpretations underlying the measurement or presentation of the schedule of expenditures of federal awards.

You are also responsible for the preparation of the other supplementary information, which we have been engaged to report on, in conformity with U.S. generally accepted accounting principles (GAAP). You agree to include our report on the supplementary information in any document that contains, and indicates that we have reported on, the supplementary information. You also agree to include the audited financial statements with any presentation of the supplementary information that includes our report thereon. Your responsibilities include acknowledging to us in the written representation letter that (1) you are responsible for presentation of the supplementary information in accordance with GAAP; (2) you believe the supplementary information, including its form and content, is fairly presented in accordance with GAAP; (3) the methods of measurement or presentation have not changed from those used in the prior period (or, if they have changed, the reasons for such changes); and (4) you have disclosed to us any significant assumptions or interpretations underlying the measurement or presentation of the supplementary information.

Management is responsible for establishing ar.d maintaining a process for tracking the status of audit findings and recommendations. Management is also responsible for identifying and providing report copies of previous financial audits, attestation engagements, performance audits, or other studies related to the objectives discussed in the Audit Scope and Objectives section of this letter. This responsibility includes relaying to us corrective actions taken to address significant findings and recommendations resulting from those audits, attestation engagements, performance audits, or studies. You are also responsible for providing management's views on our current findings, conclusions, and recommendations, as well as your planned corrective actions for the report, and for the timing and format for providing that information.

Other Services
We will also assist in preparing the financial statements, schedule of expenditures of federal awards, and related notes of the City in conformity with accounting principles generally accepted in the United States of America and the Uniform Guidance based on information provided by you. These nonaudit services do not constitute an audit under Government Auditing Standards and such services will not be conducted in accordance with Government Auditing Standards. We will perform the services in accordance with applicable professional standards. We, in our sole professional judgment, reserve the right to refuse to perform any procedure or take any action that could be construed as assuming management responsibilities . . You agree to assume all management responsibilities for the financial statements, schedule of expenditures of federal awards, and related notes, and any other nonaudit services we provide. You will be required to acknowledge in the management representation letter our assistance with all nonaudit services we provide and have accepted responsibility for them. Further, you agree to oversee the nonaudit services by designating an 2024

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individual, preferably from senior management, with suitable skill, knowledge, or experience; evaluate the adequacy and results of those services; and accept responsibility for them.

Electronic Data Communication and Storage and Use of Third-Party Service Provider In the interest of facilitating our services to the entity, we may communicate by facsimile transmission, send data over the Internet, store electronic data via computer software applications hosted remotely on the Internet, or allow access to data through third-party vendors' secured portals or clouds. Electronic data that is confidential to the entity may be transmitted or stored using these methods. We may use third-party service providers to store or transmit this data, such as providers of tax return preparation and document management software. In using these data communication and storage methods, our firm employs measures designed to maintain data security.

We use reasonable efforts to keep such communications and data access secure in accordance with our obligations under applicable laws and professional standards. We also require all of our third-party vendors to do the same.

You recognize and accept that we have no control over the unauthorized interception or breach of any communications or data once it has been sent or has been subject to unauthorized access, notwithstanding all reasonable security measures employed by us or our third-party vendors, and consent to our use of these electronic devices and applications and submission of confidential client information to third-party service providers during this engagement.

With regard to the electronic dissemination of audited financial statements, including financial statements published electronically on your website, you understand that electronic sites are a means to distribute information and, therefore, we are not required to read the information contained in these sites or to consider the consistency of other information in the electronic site with the original document.

Engagement Administration, Fees, and Other
We understand that your employees will prepare all cash, accounts receivable, or other confirmations we request and will locate any documents selected by us for testing.

We will schedule the engagement based in part on deadlines, working conditions, and the availability of your key personnel. We will plan the engagement based on the assumption that your personnel will cooperate and provide assistance by performing tasks such as preparing requested schedules, retrieving supporting documents, and preparing confirmations. If, for whatever reason, your personnel are unavailable to provide the necessary assistance in a timely manner, it may substantially increase the work we have to do to complete the engagement within the established deadlines, resulting in an increase in fees over our original fee estimate.

At the conclusion of the engagement, we will complete the appropriate sections of the Data Collection Form that summarizes our audit findings. It is management's responsibility to electronically submit the reporting package (including financial statements, schedule of expenditures of federal awards, summary schedule of prior audit findings, auditor's reports, and corrective action plan) along with the Data Collection Form to the Federal Audit Clearinghouse. We will coordinate with you the electronic submission and certification. The Data Collection Form and the reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor's reports or nine months after the end of the audit period.

We will provide copies of our reports to the City; however, management is responsible for distribution of the reports and the financial statements. Unless restricted by law or regulation, or containing privileged and confidential information, copies of our reports are to be made available for public inspection.

The audit documentation for this engagement is the property of Price Paige & Company and constitutes confidential information. However, subject to applicable laws and regulations, audit documentation and appropriate individuals will be made available upon request and in a timely manner to your cognizant agency or its designee, a federal agency providing direct or indirect funding, or the U.S. Government Accountability Office for purposes of a quality review of the audit, to resolve audit findings, or to carry out oversight responsibilities.

We will notify you of any such request. If requested, access to such audit documentation will be provided under the supervision of Price Paige & Company personnel. Furthermore, upon request, we may provide copies of selected audit documentation to the aforementioned parties. These parties may intend, or decide, to distribute the copies or information contained therein to others, including other governmental agencies. 2024

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The audit documentation for this engagement will be retained for a minimum of seven years after the report release date.

ShareFile is used solely as a method of exchanging information and is not intended to store the City's information. Upon completion of the engagement, data and other content will be removed from ShareFile in accordance with Price Paige & Company's policy.

Joshua Giosa, CPA is the engagement partner and is responsible for supervising the engagement and signing the reports or authorizing another individual to sign them. To ensure that Price Paige & Company's independence is not impaired under the AICPA Code of Professional Conduct, you agree to inform the engagement partner before entering into any substantive employment discussions with any of our personnel.

Our fees for the audit and ACFR for the fiscal year ending June 30, 2024 are summarized below:

City Audit (ACFR)
Single Audit (1 major program)*
Total
$56,000
7,000
$ 63.000
*The fee estimate for the single audit is for one major program. If there are additional major programs, there will be an additional fee of $7,000 for each program.

Our fee estimate is based on anticipated cooperation from your personnel and the assumption that unexpected circumstances will not be encountered during the audit. If significant additional time is necessary, we will discuss it with you before we incur the additional costs. Our fees for these services will be billed at the hourly billing rates for the individual involved, plus out-of-pocket expenses. Our standard hourly rates vary according to the degree of responsibility involved and the experience level of the personnel assigned to your audit. Our billing rates are reviewed annually and, where appropriate, adjusted for any increases due to inflation and other factors.

We will issue a monthly billing statement for the work completed in that month. Payments for services are due when rendered and interim billings may be submitted as work progresses and expenses are incurred.

If any dispute pertaining to our work product arises among the parties hereto, the parties agree first to try in good faith to settle the dispute by mediation administered by the American Arbitration Association under its Rules for Professional Accounting and Related Services Disputes before resorting to litigation. The costs of any mediation proceeding shall be shared equally by all parties.

All work will be suspended if your account becomes 90 days past due. No work will be resumed until your account is fully paid. You acknowledge and agree that in the event we stop work or withdraw from this engagement as a result of your failure to pay on a timely basis for services rendered as required by this engagement letter, we shall not be liable for any damages that occur as a result of our ceasing to render services. Client and accountant both agree that any dispute over fees charged by the accountant to the client will be submitted for resolution by arbitration in accordance with the Rules for Professional Accounting and Related Services Disputes of the American Arbitration Association. Such arbitration shall be binding and final. IN AGREEING TO ARBITRATION, WE BOTH ACKNOWLEDGE THAT, IN THE EVENT OF A DISPUTE

OVER FEES CHARGED BY THE ACCOUNTANT, EACH OF US IS GIVING UP THE RIGHT TO HAVE THE

DISPUTE DECIDED IN A COURT OF LAW BEFORE A JUDGE OR JURY AND INSTEAD WE ARE ACCEPTING THE USE OF ARBITRATION FOR RESOLUTION.

Reporting
We will issue written reports upon completion of our Single Audit. Our reports will be addressed to the Honorable Mayor and Members of the City Council of the City of Los Banos, California, which will also address other information in accordance with AU-C 720, The Auditor's Responsibilities Relating to Other Information Included in Annual Reports. Circumstances may arise in which our report may differ from its expected form and content based on the results of our audit. Depending on the nature of these circumstances, it may be necessary for us to modify our opinions, add a separate section, or add an emphasis-of-matter or other-matter paragraph to our auditor's report, or if necessary, withdraw from this engagement. If our opinions are other than unmodified, we will discuss the reasons with you in advance. If, for any reason, we are unable to complete the audit or are 2024

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unable to form or have not formed opinions, we may decline to express opinions or issue reports, or we may withdraw from this engagement.

The Government Auditing Standards report on internal control over financial reporting and on compliance and other matters will state that (1) the purpose of the report is solely to describe the scope of testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance, and (2) the report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. The Uniform Guidance report on internal control over compliance will state that the purpose of the report on internal control over compliance is solely to describe the scope of testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Both reports will state that the report is not suitable for any other purpose.

We appreciate the opportunity to be of service to the City and believe this letter accurately summarizes the significant terms of our engagement. If you have any questions, please let us know. If you agree with the terms of our engagement as described in this letter, please return a signed copy to us at your earliest convenience.

Very truly yours,
Joshua Giosa, CPA
Price Paige & Company
RESPONSE:

This letter correctly sets forth the understanding of the City of Los Banos, California.

Management Signature
Governance Signature
2024

LOSBANOS
Title
Title
Date
Date
326

II PRICE PAIGE & COMPANY
Certified Public Accountants
June 13, 2024
Vanessa Portillo
Finance Director
City of Los Banos
520 J Street
The Place to Be
Los Banos, California 93635
Dear Ms. Portillo:

This letter confirms the engagement of Price Paige & Company by the City of Los Banos (the City) for professional advisory services as described below.
1) The professional advisory services we currently expect to provide for the year ending June 30, 2024 include assistance with the calculation and presentation of City's Net Pension Liability (GASS 68), Net OPES liability (GASS 75), and all related deferred outflows of resources, deferred inflows of resources, and expenses. In addition to reviewing the calculations and presentation of the GASB 68 and GASB 75 provided by us, the City will be responsible for providing all information necessary to accurately prepare the calculations.
2) Assistance with the implementation of Statement No. 96 of the Governmental Accounting Standards Board, Subscription-Based Information Technology Arrangements (GASB 96) for the year ending June 30, 2024. County management will be responsible for providing us with a list of all potential contracts that may be considered subscription-based information technology arrangements in accordance with GASB 96. We will be responsible for analyzing each contract provided to determine whether they are subscription-based information technology arrangements in accordance with GASB 96. Additionally, we will be responsible for preparing supporting audit schedules and to provide the County with all journal entries necessary to reconcile its trial balance to the supporting schedules. 3) Preparation of the annual reports of financial transactions for the City for the year ending June 30, 2024.

All workpapers or other documents used by us during this engagement will be maintained in segregated files, and such originals and all copies will be returned to you upon the completion of our engagement.

You agree to oversee the nonaudit services by designating an individual, preferably from senior management, with suitable skill, knowledge, or experience; evaluate the adequacy and results of those services; and accept responsibility for them. These nonaudit services do not constitute an audit under Government Auditing Standards and such services will not be conducted in accordance with Government Auditing Standards. We will perform the services in accordance with applicable professional standards. We, in our sole professional judgment, reserve the right to refuse to perform any procedure or take any action that could be construed as assuming management responsibilities.

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or transmit this data, such as providers of tax return preparation and document management software. In using these data communication and storage methods, our firm employs measures designed to maintain data security. We use reasonable efforts to keep such communications and data access secure in accordance with our obligations under applicable laws and professional standards. We also require all of our third-party vendors to do the same.

Engagement Administration, Fees and Other
We will schedule the engagement based in part on deadlines, working conditions, and the availability of your key personnel. We will plan the engagement based on the assumption that your personnel will cooperate and provide assistance by performing tasks such as preparing requested schedules, retrieving supporting documents, and preparing confirmations. If, for whatever reason, your personnel are unavailable to provide the necessary assistance in a timely manner, it may substantially increase the work we have to do to complete the engagement within the established deadlines, resulting in an increase in fees over our original fee estimate.

It is our policy to keep records related to this engagement for a minimum of seven years after the report release date.

Our fees for the professional advisory services to assist the City for the year ending June 30, 2024 as described above are as follows:

GASS 68 Calculation as listed in item 1
GASS 75 Calculation, as listed in item 1
State Controller's Reports, as listed in item 2
GASS 96 Implementation, as listed in item 3
Total
$ 1,910
1,910
7,750
5,000
$ 16 570
Our fees are based on expected hours required to perform the service at our standard hourly rates. Our standard hourly rates vary according to the degree of responsibility involved and the experience level of the personnel assigned to your advisory engagement. Our billing rates are reviewed annually and, where appropriate, adjusted for any increases due to inflation and other factors. We will issue a monthly billing statement for the work completed in that month. Payments for services are due when rendered and interim billings may be submitted as work progresses and expenses are incurred. Our fee estimate is based on anticipated cooperation from your personnel and assumption that unexpected circumstances will not be encountered. If significant time is necessary, we will discuss it with you before we incur additional costs. The fees for these services will be billed at the hourly billing rate for the individual involved, plus out-of-pocket expenses.

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All work will be suspending if your account becomes 90 days past due. No work will be resumed until your account is fully paid. You acknowledge and agree that in the event we stop work or withdraw from this engagement as a result of your failure to pay on a timely basis for services rendered as required by this engagement letter, we shall not be liable for any damages that occur as a result of our ceasing to render services. Client and accountant both agree that any dispute over fees charged by the accountant to the client will be submitted for resolution by arbitration in accordance with the Rules for Professional Accounting and Related Services Disputes of the American Arbitration Association. Such arbitration shall be binding and final.

IN AGREEING TO ARBITRATION, WE BOTH ACKNOWLEDGE THAT, IN THE EVENT OF A DISPUTE OVER

FEES CHARGED BY THE ACCOUNTANT, EACH OF US IS GIVING UP THE RIGHT TO HAVE THE DISPUTE

DECIDED IN A COURT OF LAW BEFORE A JUDGE OR JURY AND INSTEAD WE ARE ACCEPTING THE USE OF ARBITRATION FOR RESOLUTION.

If information becomes known that would make our continued involvement in this engagement inappropriate, or parties involved change, we reserve the right to withdraw from this engagement. In addition, we will refuse to perform any requested act that we deem a violation of law, public policy, or our professional ethical standards, and may, as a result, withdraw from the engagement without penalty.

In no event will our firm be liable for incidental or consequential damages resulting from our performance on this engagement, even if we have been advised of the possibility of such damages.

Non-Solicit Clause
We value every one of our clients as well as every one of our employees. We have spent a great deal of time and resources to locate, train, and retain our employees. We respectfully request that you do not solicit our employees to work for you. If you do hire one of our employees within 2 years of when they last worked for Price Paige & Company, we will be due a finder's fee equal to 50% of the annual salary they were earning as of their last day of employment. Payment will be due within 10 days of your receipt of our invoice.

If these terms are in accordance with your understanding and meet with your approval, please return a signed copy via email or regular mail at your earliest convenience. This agreement will become effective when you return the signed copy to us.

If the need for additional services arises, our agreement with you will need to be revised. It is customary for us to describe these revisions in an addendum to this letter.

Sincerely,
Joshua Giosa, CPA
Price Paige & Company
RESPONSE:

This letter correctly sets forth the understanding of the City of Los Banos.

Management Signature
2024

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Title Date
329

THIS PAGE IS INTENTIONALLY LEFT BLANK
330
Iii PRICE PAIGE & COMPANY
Certified Public Accountants
The Place to Be
June 13, 2024
Honorable Mayor Paul Llanez
Vanessa Portillo, Director of Finance
City of Los Banos
520 J Street
Los Banos, California 93635
We are pleased to confirm our understanding of the terms of our engagement and the nature and limitations of the services we are to provide for the City of Los Banos, California (the City) for the fiscal year ending June 30, 2024.

We will apply the procedures described below to the Appropriations Limit Calculation. By signing this engagement letter, you agree to those procedures and acknowledge that the procedures to be performed are appropriate for the intended purpose of the engagement, which is:

1. We will obtain the GANN Appropriations Limit Worksheet and determine that the 2023-24 Appropriations Limit and annual adjustment factors were adopted by Resolution of the City Council. We will also determine that the County population and inflation options were selected by a recorded vote of the City Council.

2. We will recompute the 2023-24 Current Appropriations Limit by multiplying the 2022-23 Prior Year Appropriations Limit by the Total Growth Factor.

3. We will agree the Per Capita Income, City Population and County Population Factors to California State Department of Finance Worksheets.

We understand this engagement is required in accordance with California Government Code 7902 established by Proposition 4. Our engagement to apply agreed-upon procedures will be conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants (AICPA). Those standards require that we obtain your written agreement to the procedures to be applied and your acknowledgment that those procedures are appropriate for the intended purpose of the engagement, as described in this letter. A refusal to provide such agreement and acknowledgment will result in our withdrawal from the engagement. No other parties will be requested to agree to the procedures and acknowledge that the procedures performed are appropriate for their purposes. We make no representation that the procedures we will perform are appropriate for the intended purpose of the engagement or for any other purpose.

Because the agreed-upon procedures do not constitute an examination or review, we will not express an opinion or conclusion on the Appropriations Limit Calculation. In addition, we have no obligation to perform any procedures beyond those to which you agree.

We will issue a written report upon completion of our engagement that lists the procedures performed and our findings.

Our report will be addressed to the Honorable Mayor and Members of the City Council of the City of Los Banos, California.

If we encounter restrictions in performing our procedures, we will discuss the matter with you. If we determine the restrictions are appropriate we will disclose the restrictions in our report. Our report will contain a paragraph indicating that had we performed additional procedures, other matters might have come to our attention that would have been reported to you. Our report is not expected to be restricted to the use of specified parties.

There may exist circumstances that, in our professional judgment, will require we withdraw from the engagement. Such circumstances include the following:
• You refuse to provide written agreement to the procedures and acknowledge that they are appropriate for the intended purpose of the engagement.
570 N. Magnolia Avenue, Suite I 00
Clovis, CA 9361 1
www.ppc.cpa
tel 559.299.9540
fax 559.299.2344
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June 13, 2024

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• You fail to provide requested written representations, or we conclude that there is sufficient doubt about the competence, integrity, ethical values, or diligence of those providing the written representations, or we conclude that the written representations provided are otherwise not reliable. • We determine that the description of the procedures performed or the corresponding findings are misleading in the circumstances of the engagement.
• We determine that restrictions on the performance of procedures are not appropriate.

An agreed-upon procedures engagement is not designed to detect instances of fraud or noncompliance with laws or regulations; however, should any such matters come to our attention, we will communicate them in accordance with professional standards and applicable law. In addition, if, in connection with this engagement, matters come to our attention that contradict the Appropriations Limit Calculation, we will communicate such matters to you.

You are responsible for the Appropriations Limit Calculation. In addition, you are responsible for providing us with (1) access to all information of which you or the appropriate party are aware that is relevant to the performance of the agreed-upon procedures on the subject matter, (2) additional information that we may request from the appropriate party for the purpose of performing the agreed-upon procedures, and (3) unrestricted access to persons within the entity from whom we determine it necessary to obtain evidence relating to performing those procedures.

At the conclusion of our engagement, we will require certain written representations in the form of a representation letter from management that, among other things, will confirm management's responsibility for the Appropriations Limit Calculation in accordance with attestation standards established by the AICPA.

Electronic Data Communication and Storage and Use of Third-Party Service Provider In the interest of facilitating our services to the City, we may communicate by facsimile transmission, send data over the Internet, store electronic data via computer software applications hosted remotely on the Internet, or allow access to data through third-party vendors' secured portals or clouds. Electronic data that is confidential to the City may be transmitted or stored using these methods. We may use third-party service providers to store or transmit this data, such as providers of tax return preparation and document management software. In using these data communication and storage methods, our firm employs measures designed to maintain data security. We use reasonable efforts to keep such communications and data access secure in accordance with our obligations under applicable laws and professional standards. We also require all of our third-party vendors to do the same.

With regard to the electronic dissemination of financial statements, including financial statements published electronically on your website, you understand that electronic sites are a means to distribute information and, therefore, we are not required to read the information contained in these sites or to consider the consistency of other information in the electronic site with the original document.

Engagement Administration, Fees and Other
Joshua Giosa, CPA is the engagement partner and is responsible for supervising the engagement and signing the report or authorizing another individual to sign it.

The documentation for this engagement will be retained for a minimum of seven years after the report release date. To ensure that Price Paige & Company's independence is not impaired under the AICPA Code of Professional Conduct, you agree to inform the engagement partner before entering into any substantive employment discussions with any of our personnel.

You agree to hold us harmless and to release, indemnify, and defend us from any liability or costs, including attorney's fees, resulting from knowing misrepresentations to us.

The fee for the City's agreed-upon procedures report for the year ending June 30, 2024 is not expected to exceed $1,200. Our fee estimate is based on anticipated cooperation from your personnel and the assumption that unexpected circumstances will not be encountered during the audit. If significant additional time is necessary, we will discuss it with 2024

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you and arrive at a new fee estimate before we incur the additional costs. Our fees for these services will be billed at the hourly billing rates for the individual involved, plus out-of-pocket expenses. Our standard hourly rates vary according to the degree of responsibility involved and the experience level of the personnel assigned to your audit. We will issue a monthly billing statement for the work completed in that month. Payments for services are due when rendered and interim billings may be submitted as work progresses and expenses are incurred.

EVENT OF A DISPUTE OVER FEES CHARGED BY THE ACCOUNTANT, EACH OF US IS GIVING UP THE RIGHT

TO HAVE THE DISPUTE DECIDED IN A COURT OF LAW BEFORE A JUDGE OR JURY AND INSTEAD WE ARE ACCEPTING THE USE OF ARBITRATION FOR RESOLUTION.

We appreciate the opportunity to assist you and believe this letter accurately summarizes the significant terms of our engagement. If you have any questions, please let us know. If you agree with the terms of our engagement as described in this letter, please return a signed copy to us at your earliest convenience. If the need for additional procedures arises, or the procedures need to be modified, our agreement with you will need to be revised. It is customary for us to enumerate these revisions in an addendum to this letter. If additional specified parties of the report are added, we may require that they acknowledge in writing their agreement with the procedures performed, or to be performed, and their acknowledgment that the procedures are appropriate for their purposes.

Very truly yours,
Joshua Giosa, CPA
Price Paige & Company
RESPONSE:

This letter correctly sets forth the understanding of City of Los Banos for the Agreed-Upon Procedures.

Management Signature
Governance Signature
2024

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Title Date
Title Date
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II <

PRICE PAIGE & COMPANY
Certified Public Accountants
The Place to Be
June 13, 2024
Honorable Mayor Paul Llanez
Vanessa Portillo, Director of Finance
City of Los Banos
520 J Street
Los Banos, California 93635
We are pleased to confirm our understanding of the services we are to provide the City of Los Banos, California (the City) for the Abandoned Vehicle Abatement Program (the Program) for the years ending June 30, 2024 and 2023.

Audit Scope and Objectives
We will audit the statements of revenues and costs, which collectively comprise the financial statements of the Program as of and for the years ending June 30, 2024 and 2023.

The objectives of our audit are to obtain reasonable assurance as to whether the financial statements as a whole are free from material misstatement, whether due to fraud or error; issue an auditor's report that includes our opinion about whether your financial statements are fairly presented, in all material respects, in conformity with GAAP; and report on the fairness of the supplementary information referred to in the second paragraph when considered in relation to the financial statements as a whole. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. Misstatements, including omissions, can arise from fraud or error and are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment of a reasonable user made based on the financial statements.

The objectives also include reporting on internal control over financial reporting and compliance with provisions of laws, regulations, contracts, and award agreements, noncompliance with which could have a material effect on the financial statements in accordance with Government Auditing Standards.

Auditor's Responsibilities for the Audit of the Financial Statements We will conduct our audit in accordance with GAAS and the standards for financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, and will include tests of your accounting records of the Program and other procedures we consider necessary to enable us to express such opinions. As part of an audit in accordance with GAAS and Government Auditing Standards, we exercise professional judgment and maintain professional skepticism throughout the audit.

We will evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management. We will also evaluate the overall presentation of the financial statements, including the disclosures, and determine whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We will plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether from (1) errors, (2) fraudulent financial reporting, (3) misappropriation of assets, or (4) violations of laws or governmental 570 N. Magnolia Avenue, Suite I 00
Clovis, CA 9361 1
www.ppc.cpa
tel 559.299.9540
fax 559.299.2344
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regulations that are attributable to the government or to acts by management or employees acting on behalf of the government. Because the determination of waste and abuse is subjective, Government Auditing Standards do not expect auditors to perform specific procedures to detect waste or abuse in financial audits nor do they expect auditors to provide reasonable assurance of detecting waste or abuse.

Because of the inherent limitations of an audit, combined with the inherent limitations of internal control, and because we will not perform a detailed examination of all transactions, there is an unavoidable risk that some material misstatements may not be detected by us, even though the audit is properly planned and performed in accordance with GAAS and Government Auditing Standards. In addition, an audit is not designed to detect immaterial misstatements or violations of laws or governmental regulations that do not have a direct and material effect on the financial statements. However, we will inform the appropriate level of management of any material errors, fraudulent financial reporting, or misappropriation of assets that comes to our attention. We will also inform the appropriate level of management of any violations of laws or governmental regulations that come to our attention, unless clearly inconsequential. Our responsibility as auditors is limited to the period covered by our audit and does not extend to any later periods for which we are not engaged as auditors.

We will also conclude, based on the audit evidence obtained , whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the government's ability to continue as a going concern for a reasonable period of time.

Our procedures will include tests of documentary evidence supporting the transactions recorded in the accounts, tests of the physical existence of inventories, and direct confirmation of receivables and certain assets and liabilities by correspondence with selected customers, creditors, and financial institutions. We will also request written representations from your attorneys as part of the engagement.

Audit Procedures-Internal Control
We will obtain an understanding of the government and its environment, including the system of internal control, sufficient to identify and assess the risks of material misstatement of the financial statements, whether due to error or fraud, and to design and perform audit procedures responsive to those risks and obtain evidence that is sufficient and appropriate to provide a basis for our opinions. Tests of controls may be performed to test the effectiveness of certain controls that we consider relevant to preventing and detecting errors and fraud that are material to the financial statements and to preventing and detecting misstatements resulting from illegal acts and other noncompliance matters that have a direct and material effect on the financial statements. Our tests, if performed, will be less in scope than would be necessary to render an opinion on internal control and, accordingly, no opinion will be expressed in our report on internal control issued pursuant to Government Auditing Standards.

The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentation, or the override of internal control.

Audit Procedures-Compliance
As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we will perform tests of the Program's compliance with the provisions of applicable laws, regulations, contracts, agreements, and grants. However, the objective of our audit will not be to provide an opinion on overall compliance and we will not express such an opinion in our report on compliance issued pursuant to Government Auditing Standards.
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Responsibilities of Management for the Financial Statements Our audit will be conducted on the basis that you acknowledge and understand your responsibility for designing, implementing, establishing, and maintaining effective internal controls relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error, and for evaluating and monitoring ongoing activities to help ensure that appropriate goals and objectives are met; following laws and regulations; and ensuring that management and financial information is reliable and properly reported. Management is also responsible for implementing systems designed to achieve compliance with applicable laws, regulations, contracts, and grant agreements. You are also responsible for the selection and application of accounting principles, for the preparation and fair presentation of the financial statements and all accompanying information in conformity with accounting principles generally accepted in the United States of America, and for compliance with applicable laws and regulations and the provisions of contracts and grant agreements.

Management is responsible for making drafts of financial statements, all financial records, and related information available to us; for the accuracy and completeness of that information (including information from outside of the general and subsidiary ledgers); and for the evaluation of whether there are any conditions or events, considered in the aggregate, that raise substantial doubt about the government's ability to continue as a going concern for the 12 months after the financial statements date or shortly thereafter (for example, within an additional three months if currently known). You are also responsible for providing us with (1) access to all information of which you are aware that is relevant to the preparation and fair presentation of the financial statements, such as records, documentation, identification of all related parties and all related-party relationships and transactions, and other matters; (2) additional information that we may request for the purpose of the audit; and (3) unrestricted access to persons within the government from whom we determine it necessary to obtain audit evidence. At the conclusion of our audit, we will require certain written representations from you about your responsibilities for the financial statements; compliance with laws, regulations, contracts, and grant agreements; and other responsibilities required by GAAS and Government Auditing Standards.

Your responsibilities include adjusting the financial statements to correct material misstatements and for confirming to us in the written representation letter that the effects of any uncorrected misstatements aggregated by us during the current engagement and pertaining to the latest period presented are immaterial, both individually and in the aggregate, to the financial statements of each opinion unit taken as a whole.

You are responsible for the design and implementation of programs and controls to prevent and detect fraud, and for informing us about all known or suspected fraud affecting the government involving (1) management, (2) employees who have significant roles in internal control, and (3) others where the fraud could have a material effect on the financial statements. Your responsibilities include informing us of your knowledge of any allegations of fraud or suspected fraud affecting the government received in communications from employees, former employees, grantors, regulators, or others. In addition, you are responsible for identifying and ensuring that the government complies with applicable laws, regulations, contracts, agreements, and grants and for taking timely and appropriate steps to remedy fraud and noncompliance with provisions of laws, regulations, or contracts or grant agreements that we report.

Management is responsible for establishing and maintaining a process for tracking the status of audit findings and recommendations. Management is also responsible for identifying and providing report copies of previous financial audits, attestation engagements, performance audits or other studies related to the objectives discussed in the Audit Scope and Objectives section of this letter. This responsibility includes relaying to us corrective actions taken to address significant findings and recommendations resulting from those audits, attestation engagements, performance audits, or other studies. You are also responsible for providing management's views on our current findings, conclusions, and recommendations , as well as your planned corrective actions, for the report, and for the timing and format for providing that information.

Other Services
We will also assist in preparing the financial statements and related notes of the Program in conformity with accounting principles generally accepted in the United States of America based on information provided by you.

These nonaudit services do not constitute an audit under Government Auditing Standards and such services will not be conducted in accordance with Government Auditing Standards. We will perform the services in accordance 2024

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with applicable professional standards. We, in our sole professional judgment, reserve the right to refuse to perform any procedure or take any action that could be construed as assuming management responsibilities.

You agree to assume all management responsibilities relating to the financial statements and related notes and any other nonaudit services we provide. You will be required to acknowledge in the management representation letter our assistance with preparation of the financial statements and related notes and that you have reviewed and approved the financial statements and related notes prior to their issuance and have accepted responsibility for them. Further, you agree to oversee the nonaudit services by designating an individual, preferably from senior management, with suitable skill, knowledge, or experience; evaluate the adequacy and results of those services; and accept responsibility for them.

Engagement Administration, Fees, and Other
We understand that your employees will prepare all cash , accounts receivable, or other confirmations we request and will locate any documents selected by us for testing.

The audit documentation for this engagement is the property of Price Paige & Company and constitutes confidential information. However, subject to applicable laws and regulations , audit documentation and appropriate individuals will be made available upon request and in a timely manner to your cognizant agency or its designee, a federal agency providing direct or indirect funding, or the U.S. Government Accountability Office for the purposes of a quality review of the audit, to resolve audit findings, or to carry out oversight responsibilities.

We will notify you of any such request. If requested, access to such audit documentation will be provided under the supervision of Price Paige & Company personnel. Furthermore, upon request, we may provide copies of selected audit documentation to the aforementioned parties. These parties may intend or decide to distribute the copies or information contained therein to others, including other governmental agencies. 2024

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The audit documentation for this engagement will be retained for a minimum of seven years after the report release date.

ShareFile is used solely as a method of exchanging information and is not intended to store the City's information.

Upon completion of the engagement, data and other content will be removed from ShareFile in accordance with Price Paige & Company's policy.

Our fees for the City's Abandoned Vehicle Abatement Program audit for the fiscal years ending June 30, 2024 and 2023 is not expected to exceed $1 ,800. Our fee estimate is based on anticipated cooperation from your personnel and the assumption that unexpected circumstances will not be encountered during the audit. If significant additional time is necessary, we will discuss it with you and arrive at a new fee estimate before we incur the additional costs. Our fees for these services will be billed at the hourly billing rates for the individual involved, plus out-of-pocket expenses. Our standard hourly rates vary according to the degree of responsibility involved and the experience level of the personnel assigned to your audit. We will issue a monthly billing statement for the work completed in that month. Payments for services are due when rendered and interim billings may be submitted as work progresses and expenses are incurred.

WE BOTH ACKNOWLEDGE THAT, IN THE EVENT OF A DISPUTE OVER FEES CHARGED BY THE

ACCOUNTANT, EACH OF US IS GIVING UP THE RIGHT TO HAVE THE DISPUTE DECIDED IN A COURT OF

LAW BEFORE A JUDGE OR JURY AND INSTEAD WE ARE ACCEPTING THE USE OF ARBITRATION FOR RESOLUTION.

Reporting
We will issue a written report upon completion of our audit of the Program's financial statements. Our report will be addressed to the Honorable Mayor and Members of the City Council of the City of Los Banos, California.

Circumstances may arise in which our report may differ from its expected form and content based on the results of our audit. Depending on the nature of these circumstances, it may be necessary for us to modify our opinions, add a separate section, or add an emphasis-of-matter or other-matter paragraph to our auditor's report, or if necessary, withdraw from this engagement. If our opinions are other than unmodified, we will discuss the reasons with you in advance. If, for any reason, we are unable to complete the audit or are unable to form or have not formed opinions, we may decline to express opinions or issue reports, or we may withdraw from this engagement.

We will also provide a report (that does not include an opinion) on internal control related to the financial statements and compliance with the provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a material effect on the financial statements as required by Government Auditing Standards. The report on internal control and on compliance and other matters will state (1) that the purpose of the report is solely to describe the scope of testing of internal control and compliance, and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control on compliance, and (2) that the report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. The report will also state that the report is not suitable for any other purpose. If during our audit we become aware that the Program is subject to an audit requirement 2024

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that is not encompassed in the terms of this engagement, we will communicate to management and those charged with governance that an audit in accordance with U.S. generally accepted auditing standards and the standards for financial audits contained in Government Auditing Standards may not satisfy the relevant legal, regulatory, or contractual requirements.

We appreciate the opportunity to be of service to the Program and believe this letter accurately summarizes the significant terms of our engagement. If you have any questions, please let us know. If you agree with the terms of our engagement as described in this letter, please return a signed copy to us at your earliest convenience.

Very truly yours,
Joshua Giosa, CPA
Price Paige & Company
RESPONSE:

This letter correctly sets forth the understanding of the City of Los Banos, California.

Management Signature
Governance Signature
2024

LOSBANOS
Title
Title
Date
Date
340
TO:

FROM:

DATE:

LOsBanos
Agenda Staff Report
Mayor & City Council Members
Lucy Mallonee, MMC~
City Clerk/Human Resources Director
June 19, 2024
TYPE OF REPORT: Consent Agenda
SUBJECT: Approval of a Tentative Agreement (TA)/ Memorandum of Understanding (MOU) between the City of Los Banos and the Los Banos Police Sergeants Association (LBPSA)
Recommendation:

Adopt the Resolution approving the TA / MOU between the City of Los Banos and the LBPSA.

Discussion:

The City has bargained in good faith with the LBPSA and reached agreement on a new three (3) year MOU for July 1, 2024 - June 30, 2027. The changes to the MOU include, effective July 1, 2024:
• Salary increase of two point seven-five percent (2.75%) on July 1, 2024, July 1, 2025 and July 1, 2026.
• Certificate Pay will be increased to $400 per month for POST Advanced Certificate or $500 per month for a POST Supervisory Certificate. 341
• Amendment to the Cafeteria Plan Allowance (Health, Vision, Dental, Life Insurances) as it pertains to increasing the dollar caps amount over the term of the agreement.

Fiscal Impact:

For Fiscal Year 2024/2025, the proposed adjustment will increase salaries and benefits expenditures by approximately $57,218. The increase will be distributed between the General Fund $48,423 and Measure H $8,795. In FY 2024/2025, funds were budgeted in the General Fund contingency fund to mitigate the impacts of expenditure increases from labor agreements. Staff will ensure future increases are factored into the budget projections for the duration of the agreement.

Reviewed by:

Vanessa Portillo, Finance Director
Attachments:

Resolution
342
RESOLUTION NO. 6386

A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF LOS BANOS APPROVING A

TENTATIVE AGREEMENT/ MEMORANDUM OF

UNDERSTANDING BY AND BETWEEN THE CITY

OF LOS BANOS AND THE LOS BANOS POLICE

SERGEANTS ASSOCIATION
WHEREAS, the City Council of the City of Los Banos has received a request to approve a Tentative Agreement/ Memorandum of Understanding by and between the City of Los Banos and the Los Banos Police Sergeants Association (LBPSA); and WHEREAS, the Memorandum of Understanding will be in effect from July 1, 2024 to June 30, 2027; and
WHEREAS, said request has been reviewed and approved by the City Council of the City of Los Banos at their regular meeting of June 19, 2024.

NOW, THEREFORE, BE IT RESOLVED that the Memorandum of Understanding by and between the City of Los Banos and the LBPSA is hereby approved as submitted as "Exhibit A" respectively.

The foregoing Resolution was introduced at a regular meeting of the City Council of the City of Los Banos held on the 19th day of June 2024, by Council Member_ who moved its adoption, which motion was duly seconded by Council Member_ and the Resolution adopted by the following vote:

A YES: Council Members
NOES:

ABSENT:

APPROVED:

Paul Llanez, Mayor
ATTEST:

Lucille L. Mallonee, City Clerk
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TENTATIVE AGREEMENT BETWEEN

CITY OF LOS BANOS

AND LOS BANOS POLICE SERGEANTS' ASSOCIATION
2024-2027
The following document contains the Tentative Agreement between the City of Los Banos (hereinafter called "City'') and the Los Banos Police Sergeants' Association (hereinafter called "LBPSA" or "Association") (hereinafter collectively called "the parties") on wages, hours and terms and conditions of employment. The salaries, hours, fringe benefits and working conditions set forth have been mutually agreed upon by the designated bargaining representatives of the City and the Association, and will apply to all employees covered by the Memorandum of Understanding (MOU) between the City and the Association.

Upon ratification and adoption, this Agreement will amend the MOU between the parties dated July 1, 2021 through June 30, 2024.

The amended MOU shall supersede all other Memoranda of Understanding and agreements between the parties. Language in the MOU between the parties not amended by this Tentative Agreement will remain unchanged. The parties agree that any and all Tentative Agreements are hereby incorporated. Any outstanding proposals not agreed to are hereby withdrawn by the parties.

This Tentative Agreement is subject to ratification by Association membership and approval by the City Council of the City of Los Banos.

FOR THE CITY FOR THE ASSOCIATION
(µ,~
~ ll e. M"l '/.
l ~e~
~
Date: _ ~_ /_ll./_ /_un, __ '-t___ _ Date: -----i"'/f-tll\_ \_-i-_-t ______ _ 345

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346

MEMORANDUM OF UNDERSTANDING

BETWEEN

THE CITY OF LOS BANOS
AND

THE LOS BANOS POLICE SERGEANTS'

ASSOCIATION (LBPSA)
July 1, 2021 2024 - June 30, 2024 2027
347
Table of Contents
SECTION I - Preamble ...................................................................................................................................... 1 SECTION II - No Abrogation of Rights ....................................................................................................... I SECTION Ill - Past Practices .......................................................................................................................... I SECTION IV - No Discrimination .................................................................................................................. 1 SECTION V - Recognition ................................................................................................................................ 2 SECTION VI - Public Employee Communication .................................................................................. 3 SECTION VII - Management Rights .......................................................................................................... 4 SECTION VIII - Benefits .................................................................................................................................... s SECTION IX - Leave Provisions ................................................................................................................. 13 SECTION X - Pay Rates and Practices ................................................................................................... 14 SECTION XI - Miscellaneous ....................................................................................................................... 21 SECTION XII - Personnel Rules Meet and Confer ....................................................................... 23~ SECTION XIII - Provision of the Law .................................................................................................... 23~ SECTION XIV- Term ....................................................................................................................................... 23 348

MEMORANDUM OF UNDERSTANDING
City of Los Banos and
Los Banos Police Sergeants Association
July 1, 202-1--2024 - June 30, 2024 2027
SECTION I - Preamble
This Memorandum of Understanding (hereinafter referred to as "MOU") is entered into by the City of Los Banos (hereafter referred to as "City") and the Los Banos Police Sergeants' Association (hereafter referred to as "Association") on wages, hours and terms and conditions of employment.

The salaries, hours, fringe benefits and working conditions set forth have been mutually agreed upon by the designated bargaining representatives of the City and the Association, and will apply to all employees covered by the MOU between the City and the Association.

The term will be July 1, 2-024 2024, and through June 30, ~ 2027. Employees defined for the purpose of this MOU will mean a full time Police Sergeant. This MOU is subject to Section 3500-3511 of the Government Code of the State of California otherwise known as the Meyers Milias Brown ("MMB") Act, the City of Los Banos Municipal Code, and Resolution No. 1719.

SECTION II - No Abrogation of Rights
The parties acknowledge that the City responsibilities and rights and management responsibilities and rights as indicated in the City of Los Banos Personnel Rules and Regulations Resolution and all applicable State or Municipal laws and rights of the City Council are neither abrogated nor made subject to the meet and confer process by the adoption of this MOU.

SECTION Ill - Past Practices
The parties agree that this MOU supersedes any past practice covered by this Memorandum but does not affect any other written understanding agreed to by the parties not addressed in this MOU.

SECTION IV - No Discrimination
The City and the Association will cooperate in pursuing a policy of no discrimination and affirmative action.
349
The City and Association further agree that no person employed by or applying for employment will be discriminated against because of race, religion, creed, political affiliation, color, national origin, ancestry, age, or sex. The parties further agree to protect the rights of individuals by complying with the provisions of the MMB Act.

Unit employees will have the right to form, join, and participate in the activities of employee organizations of their own choosing for the purpose of representation on all matters of employer-employee relations including but not limited to wages, hours, and other terms and conditions of employment. Unit employees also will have the right to refuse to join or participate in the activities of the Association and will have the right to represent themselves individually in their employment relations with the City. No employee will be interfered with, intimidated, restrained, coerced, or discriminated against by the City of Los Banos or by any employee organization because of his/her exercise of these rights.

SECTION V - Recognition
A.

Recognition
Pursuant to Section 3500-3511 of the Government Code of the State of California, and Resolution No. 2491, the City has certified the Association as the recognized employee organization of the representing unit consisting of all fulltime Police Sergeants.

Payroll Deduction
The City will deduct Association membership dues, the amount to be designated by the Association, and any other mutually agreed upon payroll deductions from the monthly pay of member employees, upon receipt of written certification by the Association that it has and will maintain an authorization, signed by individual employees described in Section V, Subsection A of this MOU, entitled "Recognition," from whose salary or wages the deduction is to be made.

The City will remit the deducted dues and other mutually agreed payroll deduction to the Association as soon as reasonably possible after the deduction, so long as the Association remains the exclusive representative for the bargaining unit, and so long as the Association continues to provide written certification of employee authorization to the City.

The Association shall certify to the City in writing as soon as reasonably possible, 2 350
any changes in the required payroll deduction, and any changes to employee authorization. The Association will not unreasonably request payroll deductions.

The Association agrees it will provide a copy of individual authorizations to the City should a dispute arise about the existence or terms of the authorization.

The Association agrees to hold the City harmless and indemnify the City against any and all claims, demands, causes of action, lawsuits, and other forms of liability that may arise out of, or by reason of, any action taken by the City, or any department of the City for the purpose of complying with payroll deductions. This includes, but is not limited to, the City's attorney fees and costs.

C. Policies
During the term of this Agreement, changes to City of Los Banos policies referred to in this MOU that affect wages, hours and terms and conditions of employment will be subject to the meet and confer process as required by law.

SECTION VI - Public Employee Communication
A. New Employee Orientation
The parties acknowledge that the City provides a new employee orientation meeting ("orientation") to all new employees hired by the City. For new employees hired after the date of this Agreement who are appointed to a classification within the bargaining unit for which the Association is recognized as the exclusively recognized employee organization, the Association will be provided with at least ten (10) calendar days' advanced notice of the time, date and location of the orientation. The Association will be given up to thirty (30) minutes as part of, and at the end of, the new employee orientation meeting in a room designated by bargaining unit for one (1) representative to present Association membership information. Management representatives will excuse themselves during the Association portion of the orientation and the Association agrees in its portion of the orientation not to engage in speech that is opprobrious, flagrant, insulting, defamatory, insubordinate or fraught with malice as to cause substantial disruption of or material interference with City activities.

The Association will be represented at the orientation by a City employee who is a Association officer, who shall be provided up to thirty (30) minutes of paid release time to attend the orientation, with the approval of such leave subject to any operational needs.
3 351
B. Information Provided
The City will provide the Association a digital file via email, to the email address designated by the Association, containing the following information, to the extent it is maintained on file by the City:

Name
Job title
Department
Work location
Such information will be provided within thirty (30) days of the date of hire for new hires, and on a quarterly basis for all bargaining unit employees.

The parties agree that this Section fully complies with and exhausts the parties' obligation to negotiate pursuant to Government Code Sections 3557 and 3558.

SECTION VII - Management Rights
The Union agrees that all of the functions, rights, powers, responsibilities and authority of the City in regard to the operation of its work and business and the direction of its work force which the City has not specifically abridged, deleted, granted or modified by the express and specific written provisions of this Agreement are, and will remain, exclusively those of the City. Accordingly, the City specifically, except as otherwise limited by this Agreement, reserves the exclusive right to:

A. Decide the scope of service to be performed, and the standards and method of service;
B. Exercise complete control and discretion over its organization and the technology of performing its work; subject to statutory obligations; C. Train, direct, and assign its employees;
D. Hire, rehire, fire, demote, suspend or otherwise discipline for just and proper cause, promote, layoff, and determine the qualifications of employees; E. Transfer employees from location to location;
F. Determine work shift start and end times, and the number of hours and shifts to 4 352
be worked, subject to the provisions of the Fair Labor Standards Act; G. Determine the content of job classifications; any change to the current job classifications or addition of new classifications will be subject to meet and confer when those changes fall within the scope of representation; H. Establish employee performance standards including, but not limited to, quality and quantity standards, and to require compliance therewith; I. Maintain the efficiency of City operations;
J. Take all necessary action to carry out its mission in emergencies; and K. Merge, consolidate, expand or curtail or discontinue temporarily or permanently, in whole or in part, operations whenever in the sole discretion of the City, good business judgment makes such curtailment or discontinuance advisable; subject to meet and confer obligations over "effects" of the exercise of these rights in accordance with legal requirements.

SECTION VIII - Benefits
The City will contribute toward the City sponsored benefit plans during the life of this MOU as follows:

A. Medical Insurance Benefits
The City will contract with the California Public Employees Retirement System (CalPERS) for the purpose of providing employees with medical insurance benefits.

Effective July 1, 2010, the City's maximum monthly contribution for each eligible active employee for the purchase of medical insurance will be equal to the minimum monthly employer contribution required under the Public Employees Medical and Hospital Care Act (PEMHCA).

B. Section 125 Plan
The City will maintain a Cafeteria Plan, pursuant to Section 125 of the Internal Revenue Code, for the purpose of providing employees with access to various health and welfare benefits and to provide minimum essential coverage for medical insurance to employees and qualifying dependents. Benefits available 5 353
through the Cafeteria Plan include, but are not limited to, medical insurance, flexible spending accounts for out-of-pocket medical expenses and dependent care, vision insurance, dental insurance and life insurance benefits. The City agrees to provide a Cafeteria Plan Allowance to all employees eligible to participate in City-sponsored health benefits under Section A of this Article. Any tax consequences resulting from City contributions to the Cafeteria Plan are the sole responsibility of the employee.

The City Cafeteria Plan Allowance will be capped at the amounts listed below, and will not exceed the monthly premium for the plan at the level of coverage selected by the employee, minus the PEMHCA minimum employer contribution f.or health insurance; plus the City's contribution to eighty five dollars ($85) per month in recognition of premiums forthe City's life, dental and vision insurance plans. Employee enrollment in dental insurance, vision insurance, and the basic life insurance (maximum $50,000 pay out) plans offered by the City is mandatory:
enrollment of qualifying dependents in City-offered dental and vision insurance is optional.

Employees enrolled in City-offered CalPERS medical insurance plans are not eligible to receive cash for unused portions of the cafeteria plan allowance.

1. Effective January 1, 2021, f.or all employees enrolled in City offered CalPERS health insurance regardless of hire date, the City 1.vill provide, on a monthly basis, for the purpose of providing minimum essential coverage to employees and dependents, a Caf.eteria Plan Allo1.vance, based on the employee's plan and level of health care coverage, not to exceed the premiums f.or the PORi\C Region that includes Los Banos for the employee's level of health care coverage, minus the PEMHCA minimum employer contribution f.or health insurance, plus eighty five dollars ($85) per month in recognition of premiums for City's life, dental and vision insurance plans.

Employees enrolled in City offered CalPERS medical insurance plans are not eligible to receive cash for unused portions of the caf.eteria plan allowance.

If the combined premiums f.or the employee's dental, v,s,on and lif.e insurance plans and level of coverage are less than eighty five dollars ($85) per month, the employee can apply the difference to1Nard the employee's medical insurance premium.
6 354

1. 2.

For 2021, PORAC Region 1 plan rates are $799 per month for single party coverage; $1,725 per month for 2 party coverage; and $2,199 per month for family coverage.

Tier One: For employees hired by the City before July 1, 2010, the City will provide. on a monthly basis, a Cafeteria Plan Allowance based on the employee's enrolled plan and level of health insurance coverage for medical, dental, vision, and basic life insurance (maximum $50,000 pay out), up to the amounts below. City contributions will not to exceed the premiums for the PORAC medical insurance plan in the Region that includes Los Banos for the employee's level of health care coverage, and will not exceed the following amounts:

Medical Dental Vision Life
Single Party $1,154 $100 $20 .l1Q
2-Partv $2,308 $100 $20 .l1Q
Ee+ Family $3,000 $100 $20 .l1Q
The City will pay minimum monthly employer contribution required under the Public Employees Medical and Hospital Care Act (PEMHCA) to CalPERS. This will be deducted from the Cafeteria Plan Allowance listed above.
i!f the cost of family coverage in PORAC for the Region that includes Los Banos reaches or exceeds three thousand dollars ($3,000) per month, the City's contribution to the cafeteria plan for all Tier One levels of coverage will be capped and will cease to automatically escalate based on annual PORAC premium increases. If the upcoming year's PORAC premium for family coverage will exceed $3,000the above amounts, the City contribution for family coverage for the upcoming year will be capped at $3,000the above amounts. If that occurs, the City contribution for single and t\\10 party coverage for the upcoming year will be increased by the same percentage necessary to reach $3,000 for family coverage, and •.viii be capped at those amounts.

Tier Two: For employees hired by the City on or after July 1, 2010, effective the first month following City Council approval of a successor MOU in 2024, the City will provide, on a monthly basis, a Cafeteria Plan Allowance based on the employee's enrolled plan and level of health insurance coverage for medical, dental, vision, and basic life insurance (maximum $50,000 pay out). City contributions will not to exceed the 7 355
premiums for the PORAC medical insurance plan in the Region that includes Los Banos for the employee's level of health care coverage. and will not exceed the following amounts:

Medical Dental Vision
$1 154 100 20 10
2,100 100 20 10
$2 650 100 20 10
Effective January 1. 2025, the City will provide. on a monthly basis, a Cafeteria Plan Allowance for Tier Two employees based on the employee's enrolled plan and level of health insurance coverage for medical. dental. vision. and basic life insurance (maximum $50,000 pay out). up to the amounts below. City contributions will not to exceed the premiums for the PORAC medical insurance plan in the Region that includes Los Banos for the employee's level of health care coverage. and will not exceed the following amounts:

Medical Dental Vision
1 154 100 20 10
2 165 100 20 10
2,755 100 20 10
Effective January 11 2026. the City will provide. on a monthly basis, a Cafeteria Plan Allowance for Tier Two employees based on the employee's enrolled plan and level of health insurance coverage for medical, dental. vision. and basic life insurance (maximum $50,000 pay out). up to the amounts below. City contributions will not to exceed the premiums for the PORAC medical insurance plan in the Region that includes Los Banos for the employee's level of health care coverage. and will not exceed the following amounts:

Medical Dental Vision
1 154 100 20 10
2 270 100 20 10
2 860 100 20 10
Effective January 1. 2027, the City will provide1 on a monthly basis, a Cafeteria Plan Allowance for Tier Two employees based on the employee's enrolled plan and level of health insurance coverage for medical, dental, vision. and basic life insurance (maximum $50,000 pay out), up to the amounts below. City contributions will not to exceed the premiums for the PORAC medical insurance plan in the Region that includes Los Banos for the employee's level of health care coverage, and will not exceed the following amounts:
8 356

2. 3.

Medical Dental Vision Life

1. 154 $100 20 10
2 308 100 20 $10
3 000 $100 $10
The City will pay minimum monthly employer contribution required under the Public Employees Medical and Hospital Care Act (PEMHCA) to CalPERS. This will be deducted from the Cafeteria Plan Allowance listed above.

If the cost of family coverage in PORAC for the Region that includes Los Banos reaches or exceeds t\vo thousand four hundred dollars ($2,400) per month, the City's contribution to the cafeteria plan for all Tier One levels of coverage 'Nill be capped and will cease to automatically escalate based on annual PORAC premium increases. If the upcoming year's PORl\C premium for family coverage will exceed $2,400, the City contribution for family co·,erage for the upcoming year will be capped at $2,400. If that occurs, the City contribution for single and wo party coverage for the upcoming year will be increased by the same percentage necessary to reach $2,400 for family coverage, and will be capped at those amounts.

Employee enrollment in dental, vision and life insurance plans offered by the City is mandatory.

Employees who opt out of medical plans sponsored by the City, and sign an Attestation and Release, and provide proof of Minimum Essential Coverage as defined by the ACA for the employee and members of the employee's tax family, will receive a Cafeteria Plan Allowance of four hundred eighty five dollars ($4008§) per month.,_
Employee enrollment in dental insurance, vision insurance, and the basic life insurance plans offered by the City is mandatory, including for employees who opt out of City health insurance plans. Enrollment of qualifying dependents in City-offered dental and vision insurance is optional. For employees who opt out of City-provided medical insurance, effective the first month following City Council approval of a successor MOU in 2024, City monthly contributions to dental, vision and life insurance (maximum $50,000 pay out plan) of •11hich part must be used to enroll in mandatory life insurance, dental insurance and vision insurance coverage.will be based on the employee's enrolled plan and level of health insurance coverage for dental, vision, and basic life insurance, up to the 9 357
amounts below. City contributions will not exceed the following amounts:

Dental Vision Life
Single Party $100 $20 llQ
2-Party $100 $20 llQ
Ee+ Family $100 $20 llQ

4. Subject to the City's request, the City and Association shall reopen to discuss the impact of healthcare legislation, including but not limited to, the Affordable Care Act, and/or its impacts.

C. Sick Leave
D.

The City will provide eight (8) hours of Sick Leave for each calendar month of service to the City, in accordance with the City of Los Banos Sick Leave Policy and as amended during the term of this agreement; refer to City of Los Banos Policy & Procedures Manual.

Pension Program and Cost Sharing

1. Pension Formula.
a.
b.

Tier One: Regular employees, hired before January 1, 2011 will receive a CalPERS retirement benefit based on the 3% @ 50 formula as set forth in CalPERS regulations. The City shall pay the full share of the employer contribution to CalPERS. The employee will be responsible to pay the employee contribution to the CalPERS 3%@ 50 Plan.

Tier Two: Regular employees, hired on or after January 1, 2011, will receive a CalPERS retirement benefit based on the 3% @ 55 formula as set forth in CalPERS regulations. The City shall pay the full share of the employer contribution to CalPERS. The employee will be responsible to pay the employee contribution to the CalPERS 3% @ 55 Plan.

Tier Three: Qualifying employees hired on or after January 1, 2013 and considered new members of CalPERS as defined by the Public Employee Pension Reform Act (PEP RA) will receive the 2. 7% at age 57 retirement formula, and shall be subject to the provisions of PEPRA, including provisions governing reportable compensation. 10 358

2. Pension Cost Sharing.

In accordance with Section 20516(a) of the California Government Code, each employee defined as a "classic" member of CalPERS enrolled in 3% @ 50 or 3% @55 pension formulas shall have deducted from their compensation a three percent (3%) cost share in addition to the nine percent (9%) member contribution (i.e., 12% total contribution).

The parties mutually recognize and acknowledge that the cost-sharing provisions provided herein satisfy the terms set forth in Government Code 20516.5.

The City makes no representation as to the tax consequences of cost sharing contributions. The above described cost-sharing contributions shall be made in accordance with IRS requirements.

E. Retiree Medical
F.

The City will provide access to medical insurance coverage for those employees who retire from employment with the City and who constitute "annuitants" as defined by the PEMHCA.

The City's maximum monthly contribution for each eligible annuitant will be equal to the minimum employer contribution required under the PEMHCA. The provisions of the PEMHCA will govern medical insurance coverage for annuitants.

Retiree Longevity Pay

1. Employees hired before October 1, 2002 and who, at the time of retirement, constitute an "annuitant" as defined by the PEMHCA, will receive the following:
a. From the date of retirement and until such time the retiree becomes eligible for Medicare, the City will contribute an amount equal to the health premium for the employee's elected health care plan and level of coverage, less the City's minimum monthly employer contribution under PEMHCA.
b. Upon attaining Medicare eligibility, the City will contribute an equal 11 359
to the premium cost for the supplemental Medicare plan offered by CalPERS, less the amount of the City's minimum monthly employer contribution under PEMHCA.
c. Employees will not be entitled to City payments specified above during employment.

2. Employees hired between October 1, 2002 and March 16, 2010 and who, at the time of retirement, constitute an "annuitant" as defined by the PEMHCA, will receive the following:

3. a. From the date of retirement and until such time that the retiree becomes eligible for Medicare, the City will contribute an amount to cover fifty percent (50%) of the Blue Shield Access HMO plan for employees with ten (10) years of service, plus an additional five percent (5%) of the cost of the Blue Shield Access HMO plan for each additional year of service beyond ten (10) years, up to onehundred percent (100%) of the Blue Shield Access HMO plan after twenty (20) years of service, less the amount of the City's minimum monthly employer contribution under PEMHCA.
b. Upon attaining Medicare eligibility, the City's contribution will equal the cost of fifty percent (50%) of the supplemental Medicare plan offered by CalPERS for employees with ten (10) years of service, plus an additional five percent (5%) of the cost of the supplemental Medicare plan offered by CalPERS for each additional year of service beyond ten (10) years, up to one-hundred percent (100%) of the supplemental Medicare plan offered by CalPERS after twenty (20) years of service, less the amount of the City's minimum monthly employer contribution under PEMHCA.
c. Employees will not be entitled to City payments specified above during employment.

Retiree Health Savings Account
a. For employees hired on or after July 1, 2010, the City will establish a Retiree Health Savings Plan account to which the City and employees contribute to save, on a tax-deferred basis, money to help pay the cost of healthcare once an individual retires. The Retiree Health Savings Plan may be used for health-related 12 360
expenses as provided under the terms of the Plan. Any tax consequences resulting from City contributions to the Retiree Health Savings Plan are the sole responsibility of the employee. i. Participation is mandatory for all employees;
ii. Effective the first pay period following City Council approval of a successor MOU, or July 1, 2021 (whichever is later), starting after an employee has successfully completed his or her initial probationary period, the City will contribute seventy-five dollars ($75) per month to the employee's
Retiree Health Savings Plan account. LikewiseJ. the
employee will contribute seventy-five dollars ($75) per month to his or her Retiree Health Savings Plan account.
iii. During an employee's initial hire probationary period with the City, neither the employee nor the City will contribute to the employee's Retiree Health Savings Plan account. Upon
successful completion of the initial hire probationary period, the City will contribute a lump sum of seventy-five dollars ($75) per month for each month served in the employee's initial probationary period.
iv. Upon cessation of employment with the City, the City will cease contributions to the individual's Retiree Health
Savings Plan Account. Employees will have no vested right in City contributions to the Retiree Health Savings Plan Account.

G. State Disability Insurance (SDl)/Paid Family Leave
Effective July 14. 2023, the Association voted to participate in State Disability Insurance (SDl)/-Paid Family Leave (PFU .The bargaining unit may elect to participate in SDI at the sole cost to employees.

SECTION IX - Leave Provisions
A. Vacation

1. All regular employees earn vacation leave, beginning with the date of hire, in accordance with the following:
a. Regular employees with five (5) full years of service or less earn six and six hundred sixty-four thousandths (6.664) hours vacation leave for each calendar month of employment, and may save a 13 361

8. maximum of one hundred sixty (160) hours.
b. Regular employees who have completed from five (5) to fifteen (15) full years of service earn ten (10) hours vacation leave for each calendar month of employment, and may save a maximum of two hundred forty (240) hours.
c. Regular employees who have completed over fifteen (15) full years of service earn thirteen and three hundred sixty thousandths (13.360) hours of vacation leave for each calendar month of employment, and may save a maximum of three hundred twenty (320) hours.

2. Vacation benefits will be accrued, credited, and used in accordance with the City of Los Banos Vacation Leave Policy, and as amended during the term of this agreement; refer to City of Los Banos Policy Manual.

Holidays
Effective January 1, 2016, Sergeants performing twenty four (24) hour shift work who are normally required to work on approved holidays because they work in positions that require scheduled staffing without regard to holidays will receive holiday in lieu pay. In lieu of receiving time off for holidays, employees will be paid one hundred (100) hours per year, paid at the base salary rate,_to be paid in a lump sum the first pay period in November. Payments will be handled in accordance with CalPERS regulations. Holiday pay will be paid by separate check. In the event CalPERS changes the frequency of reporting requirements for holiday pay, the City and Association agree to reopen on the sole issue of the lump sum payment for holiday in lieu pay.

SECTION X - Pay Rates and Practices
A. Salary
Effective the first pay period following City Council approval of a successor MOU, or July 1, 2024 (whichever is later),Effective July 1, 2021 contingent on Association ratification and City Council approval by July 7, 2021 , the salary schedule for Police Sergeants will be increased by two and three-quarters percent (2.75%),two percent (2%), to reflect a monthly salary range as follows:
14 362
B.

STEP 1
$9,415
STEP 2
$9,886
STEP3
$10,380
STEP4
$10,899
STEPS
$11,444
STEP6
$11 ,730
Effective July 1, ~2025, the salary schedule for Police Sergeants will be increased by two and three-quarters percent (2.75%),PNO percent (2%) to reflect a monthly salary range as follows:

STEP 1
$ 9,674
STEP2
$ 10,158
STEP3
$ 10,666
STEP4
$ 11,199
STEP5
$ 11 ,759
STEP6
$ 12,053
Effective July 1, ~2026, the salary schedule for Police Sergeants will be increased by two and three-quarters percent (2. 75%),two percent (2%) to reflect a monthly salary range as follows:
*
STEP 1
$ 9,940
STEP2
$ 10,437
STEP3
$ 10,959
STEP4
$ 11,507
STEP5
$ 12,082
STEP6
$ 12,384
The City will maintain a seven percent (7%) pay differential between the Top Step Police Officer salary range and the Start Step Police Sergeant salary range during the term of this Agreement.

Essential 'Norker Lump Sum Payments:

1. 2.

Effective upon City Council approval of this agreement and the City's receipt of the first federal stimulus payment, the City will provide lump sum payments of the following amounts as non discretionary incentive to ratify the agreement:
• Employees hired before January 1, 2021 will receive a lump sum payment of four thousand eight hundred dollars ($4,800). • Employees hired on or after January 1, 2021 will receive a lump sum payment of PNO thousand four hundred dollars ($2,400).

Effective July 1, 2022 or upon the City's receipt of the second federal stimulus payment (whichever is later), the City 'Nill provide lump sum payments of the following amounts as non discretionary incentive to ratify the agreement:
15 363

3. • Employees hired before January 1, 2021 will receive a lump sum payment of three thousand six hundred dollars ($3600).
• Employees hired on or after January 1, 2021 ill receive a lump sum payment of one thousand two hundred dollars ($1,200).

Effective July 1, 2023, the City will provide lump sum payments of the follmving amounts as non discretionary incentive to ratify the agreement:
• Employees hired before January 1, 2021 will receive a lump sum payment of one thousand two hundred dollars ($1,200).
• Employees hired on or after January 1, 2021 will receive a lump sum payment of six hundred dollars ($600).

It is the intent of the parties that the lump sum payments 'Nill not be treated as salary or 1Nages, as the payments are not provided as compensation for hours of employment or longevity pay. The lump sum payments will not be included in overtime/regular rate of pay calculations, will not be treated as pensionable compensation, and there will be no roll up effect of the lump sum payments. The City 'Nill withhold taxes from lump sum payments in accordance \'i.iith federal and state requirements. The lump sum payments will be paid by separate check.

C. Overtime
Pursuant to the Fair Labor Standards Act (FLSA), the City has established a designated 207(k) work period of twenty-eight (28) days, in which overtime compensation is paid for actual time worked in excess of one hundred seventyone (171 ) hours during the established twenty-eight (28) day work period; date established July 1, 1985. Overtime paid pursuant to this provision is known as "FLSA overtime." Employees on the 171 hour/28-day, 7(k) work period will receive premium overtime compensation at the rate of one and one-half (1.5) times their "regular rate of pay," for all time worked in excess of 171 hours worked in a 28-day work period.

The City wi»-also provide§. overtime compensation for all time worked in excess of the employee's regularly assigned work shift, for any time worked in excess of 40 hours in a week. Any overtime beyond what is required by the FLSA is known as contractual overtime., and for time worked in excess of 171 hours, during the established Twenty Eight (28) Day Cycle.

Overtime pay will continue to be handled in accordance with the guidelines set forth in the City's Overtime Compensation Policy, City Policy & Procedures 16 364
D.

Manual Division 5-F, and as amended during the term of this agreement.

Compensatory Time Off (CTO)
Sergeants may opt to accrue compensatory time-off ("CTO") in lieu of cash payment for overtime worked if their supervisor agrees prior to overtime work being performed. CTO accrues at the rate of one and one-half (1.5) hours for each hour, or fraction thereof, worked in excess of the employee's regularly assigned work shift, for any time worked in excess of forty (40) hours in a designated work week, and for time worked in excess of 171 hours, during the established Twenty-Eight (28) Day Cycle. Police Sergeants are permitted to accumulate a maximum amount of one hundred sixty (160) hours of CTO.

Effective July 1, 2021, Sergeants may cash out CTO under the following conditions. Annually, no later than by December 15th, employees may submit an irrevocable election form to Human Resources to receive payment of an elected amount of earned, unused CTO in payments up to a maximum of one-hundred twenty (120) hours, on December 5th of the next calendar year. Employees who do not submit irrevocable election forms by the December 15th due date will have been deemed to have elected to forgo participation in the optional annual CTO cash out program. Cash out of compensatory time will be paid by separate check upon request.

Comp Time will be handled in accordance with provisions outlined in the City's Compensatory Time Off (CTO) Policy, refer to City of Los Banos Policy & Procedures Manual.

Investigators; Special Pay Detective Division Premium
The purpose of this special pay is to provide appropriate compensation for the unique and demanding work schedule required of Police Investigators. Effective July 1, 2005 Sergeants who serve in the Job assignment ofare routinely and consistently assigned to a Detective assignment Investigator will be compensated, by administrative directive, as follows:
• Step 1 - five percent (5%) above regular salary
• Step 2 - seven and one-half percent (7½%) above regular salary. A Sergeant with two (2) years of investigations experience with City of Los Banos will be placed at Step 2.

Bilingual Pay
17 365
G.

Bilingual pay will be paid in accordance with the City's Bilingual Pay Policy, City Policy & Procedures Manual Division 5-L, and as amended during the term of this agreement.

The purpose of this special pay is to provide compensation for employees who are routinely and consistently assigned to provide bilingual services in Spanish on behalf of the City as follows:
• $50 per month - Basic Verbal Skills, or
• $100 per month - Comprehensive Verbal Skills, or
• $150 per month - Verbal, written presentation skills
In order to qualify for bilingual pay, employees will-must be required routinely and consistently assigned to use their bilingual skills on the job and pass a comprehension test given by the City, in accordance with the guidelines set forth in the City of Los Banos Bilingual Pay Policy; refer to City of Los Banos Policy & Procedures Manual.

Canine Handlers Special Pay
Police Sergeants assigned to the position of Canine Handler or as the designated Canine Supervisor are authorized and will be compensated to work up to twenty-five (25) hours per month during their off-duty hours to perform associated duties. For the Canine Supervisor, payment for off-duty work is not automatic. To receive compensation for off-duty work, the Canine Supervisor is required to record off-duty time worked on their time card each pay period.

In consideration of the time expended to perform feeding, caring for, grooming, and one-on-one informal training of a City-assigned canine for law enforcement work during the Canine Handler's off-duty hours, the City will provide the Canine Handler twenty-five (25) hours of pay at the Minimum Hourly Wage required by law. Partial months served will be paid on a pro-rata basis.

By and through the Association, those unit members assigned to canine duty agree that the above additional hours provided each week are reasonably necessary to provide for the care and maintenance of the assigned canine and that these additional "hours worked" are intended to compensate unit members assigned to canine duty for all off duty hours spent caring for and maintaining their assigned canine, in compliance with the Fair Labor Standards Act (FLSA) 18 366
and interpretive cases and rulings.

The parties acknowledge that the FLSA, which governs the entitlement to compensation for canine care and maintenance, entitles the parties to agree to a reasonable number of hours per month for the performance of off duty care and maintenance duties. The hours derived at in this agreement were determined after an actual inquiry of the officers assigned to canine duty, as addressed by Leever v. City of Carson City, 360 F.3d 1014 (9th Cir. 2004.) It is the intent of the parties through the provisions of this section to fully comply with the requirements of the FLSA. In addition, all parties believe that this section of the MOU does comply with the requirements of the FLSA.

H. Education Incentive - Allowance
I.

In accordance with the City's Educational Incentive Policy, City of Los Banos Policy & Procedures Manual Division 5-G, and as amended during the term of this agreement, effective the first full pay period following City Council adoption of a successor MOU, qualified Sergeants will be entitled to receive Educational Incentive pay for completing the following degrees, which enhance their ability to do their job. as follows:
• One hundred dollars ($100) per month for an AA/AS Degree, or • One hundred seventy-five dollars ($175) per month for a BA/BS Degree, or • Two hundred twenty-five dollars ($225) per month for a Master's Degree.

Certificate Pay
Effective the first full pay period following City Council approval of a successor MOU in 2024, or July 1, 2024, whichever is later July 1, 2021 contingent on Association ratification and City Council approval by July 7, 2021 ,, Sergeants will be entitled to receive the following compensation when they have been awarded and hold the specified California Commission on Peace Officers Standards (P.O.S.T.) Certificate as follows:
• One hundred fifty dollars ($150) per month for a P.O.S.T. Intermediate Certificate, or
• T\vo hundred twenty fiveFour hundred dollars ($400~) per month for a P.O.S.T. Advanced Certificate, or
• Two hundred seventy fiveFive hundred dollars ($500~) per month for a P.O.S.T. Supervisory Certificate
19 367
J. Code Enforcement Sergeant 5% Special Assignment Pay
Police Sergeants assigned to Code Enforcement Sergeant will receive assignment pay of five percent (5%) base pay.

K. Tuition Reimbursement
The City will provide reimbursement for schools, tuition, and specific expenses in accordance with the guidelines set forth in the City of Los Banos Tuition Reimbursement Policy and as amended during the term of this agreement; refer to City of Los Banos Policy & Procedures Manual.

L. Call Back Time
Employees who are required to report to work during their assigned off duty hours will be entitled to receive a minimum of three (3) hours Call Out Overtime Compensation even if the actual time worked is less than three (3) hours; except in the following instances:

1. In the event the off-duty time being worked extends into or begin immediately following the employee's assigned shift, he/she will be entitled to overtime compensation for only the actual off-duty hours worked.

2. In the event the off-duty time begin worked is in response to a special assignment mutually agreed upon between the employee and the City, the employee will be entitled to overtime compensation for only the actual hours worked.

3. Employees will be entitled to receive the three (3) hour Call Back Overtime Pay only one (1) time during any twenty-four (24) hour period. A twentyfour (24) hour period for the purpose of this benefit is 0001 hours through 2400 hours. In the event an employee is called out several times during a given twenty-four (24) hour period, he or she will only receive three (3) hours compensation if the total hours worked are three (4) or less. If the total hours worked exceeded three (3), the employee will be compensated for the actual hours worked.

Special Note: The expressed purpose of Call Back Pay is to compensate 20 368
employees who have their normal off-duty hours disrupted due to unscheduled call backs, court appearances, and other such Job demands. In the event of a disagreement over entitlement to three (3) hour call back pay, the stated intent of this benefit will be the guiding factor in resolving disputes.

M. Promotion
An employee who is promoted to a classification having a greater maximum salary will be placed on the lowest step of the new range that results in not less than a five percent (5%) increase above the employee's current regular salary.

SECTION XI - Miscellaneous
A. Uniform Issuance, Replacement, and Cleaning
The City will provide all required uniforms and safety equipment. The Police Chief will be the sole authority for determining the type of uniforms and equipment to be purchased and utilized. Additionally, the City of Los Banos will accept responsibility for payment of uniform cleaning in accordance with the following guidelines; a) two (2) shirts and two (2) trousers each work week; and b) one (1) jacket each calendar month.

Initially upon hire, or upon promotion as needed, the Department will provide three initial sets of uniforms, including one uniform jacket, and including tailoring.

For special assignments (Investigations, Code Enforcement, and Gang Unit), the City will provide two sets of special assignment uniforms.

Effective the first pay period following City Council approval of a successor MOU in 2024, or July 1, 2024, whichever is later, the City will discontinue providing uniforms after the initial sets have been provided to new hires, and will instead provide a uniform allowance of one thousand dollars ($1,000) per fiscal year.

Uniform allowance will be paid by separate check. In the event CalPERS changes the frequency of reporting requirements for uniform allowance, the City and Association agree to reopen on the sole issue of the lump sum payment for uniform allowance.

Any replacements of the following items will be paid for by the employee using the uniform allowance:
• Short sleeve shirts
21 369
• Long sleeve shirts
• Pants
• Trouser Belts
• Special assignment uniforms
• Class A jacket (after initial purchase)
• Tailoring
The Department will provide the initial and replacements of the following required items:
•
•
•
•
•
•
•
•
Campaign Class A hats
Service stripes
Patches
Badges
Lapel pins
Safety gear
Duty belts, and
Special assignment gear .

For classic CalPERS members, •.vhich the parties define as those who are not defined as "new members" by the Public Employee Pension Reform Act (PEPRA), the City •.viii report to CalPERS the monetary value for providing and maintaining required uniforms. The City will report the uniform costs on a semi monthly basis. The uniform purchase and maintenance amount reported to CalPERS •.viii be derived from the City's total annual cost for providing the employee's uniforms, not to exceed one thousand dollars ($1,000) per fiscal year, per employee.

B. No Strike
The Association, its members and representatives, agree that it and they will not engage in, authorize, sanction or support any strike, slowdown, stoppage of work, curtailment of production, refusal to operate designated equipment (provided such equipment is safe and sound) or to perform customary duties; and neither the Association nor any representatives thereof shall engage in job action for the purpose of effecting changes in the directives or decisions of management of the City, nor to effect a change of personnel or operations of management or of employees not covered by this Memorandum of Understanding. No lockout of employees shall be instituted by the City during the term of this MOU.
22 370
SECTION XII - Personnel Rules Meet and Confer
Upon notice from the City, the Association shall have the opportunity to meet and confer over updates to the City's Personnel Rules.

SECTION XIII - Provision of the Law
This MOU is subject to all applicable current and future Federal and State laws, State regulations, the Municipal Code of the City of Los Banos and the Constitution of the State of California.

Should any of the provisions herein contained be rendered or declared invalid by reason of the State or Federal legislation or court action, such invalidations of such part of portions hereof will not invalidate the remaining portions hereof and they will remain in full force and effect, insofar as such remaining portions are severable.

SECTION XIV-Term
The term of this MOU will commence July 1, 2021 2024 and will expire June 30, 20242027, except as otherwise provided in this MOU.

LOS BANOS POLICE SERGEANTS'
ASS
Signat re
56'-U~
Title:

Date: _ ____._v ~I t_,_i \,____ 1.,_,_'1 _ ___ _
23 CITY OF LOS BANOS
Signature
Title:

Date: - -----------
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THIS PAGE IS INTENTIONALLY LEFT BLANK
372
LOsBanos
At the Crossroads of California
Agenda Staff Report
TO:

FROM:

Mayor & City Council Members
Lucy Mallonee, MMC .9""
City Clerk/Human Resources Director
DATE: June 19, 2024
TYPE OF REPORT: Consent Agenda
SUBJECT: Update to Salary Schedule
Recommendation:

Attached please find a resolution for your review and consideration of approval that would amend Division 4, Salary Schedule-Employee Classifications to reflect changes associated with the approval of the Los Banos Police Sergeants Association (LBPSA) Tentative Agreements (TA)/Memorandums of Understanding (MOU).

Discussion:

With approval of the TA/MOUs with the LBPSA, effective July 1, 2021, the City's Salary Schedule needs to be amended to reflect the approved three (3) year, two point seven-five percent (2.75%) salary increases for the Police Sergeants.

Fiscal Impact:

The fiscal impact associated with this change has been evaluated and accounted for in the Fiscal Year 2024/25 Budget. Staff will make the appropriate adjustments in the budget to reflect this change.

Reviewed by:
•
Vanessa Portillo, Finance Director
Attachments:

Resolution
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RESOLUTION NO. --

A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF LOS BANOS AMENDING DIVISION 4,

SALARY SCHEDULE EMPLOYEE

CLASSIFICATIONS RELATING TO CHANGES TO

SECTION G - POLICE
WHEREAS, the City Council of the City of Los Banos has received a request that the Division 4, Salary Schedule of the City Policy Manual be amended to reflect changes associated with the approval of the Los Banos Police Sergeants Association (LBPSA) TA/MOU effective, July 1, 2024, for a salary increase of two point seven-five percent (2.75%) on July 1, 2021, July 1, 2022 and July 1, 2023; and WHEREAS, said request has been reviewed and approved by the City Council of the City of Los Banos at their regular meeting of June 19, 2024.

NOW, THEREFORE, BE IT RESOLVED that Division 4, Salary Schedule of the City Policy Manual is hereby amended to reflect the changes as listed above and is hereby approved as submitted as "Exhibit A" respectively.

The foregoing Resolution was introduced at a regular meeting of the City Council of the City of Los Banos held on the 19th day of July 2024, by Council Member_ who moved its adoption, which motion was duly seconded by Council Member_ and the Resolution adopted by the following vote:

A YES: Council Members
NOES:

ABSENT:

APPROVED:

Paul Llanez, Mayor
ATTEST:

Lucille L. Mallonee, City Clerk
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EXHIBIT A
DIVISION4

SALARY SCHEDULE
(Approved , 2024 I Effective July 1. 2024)
SEC. 4003 REGULAR (FULL TIME) EMPLOYEE CLASSIFICATIONS-MONTHLY SALARY

SECTION G - POLICE
EMPLOYEE CLASSIFICATION AUTHORIZED RANGE STEP 1 STEP 2 STEP 3 STEP4 STEPS Police Sergeant (8) * ~ 9,e24 rn,rn2 4-0,eG-7 ~
711/2024 2.75% 9,415 9,886 10,380 10,899 11,444
711/2025 2.75% 9,674 10,158 10,666 11,199 11,759
7/1/2026 2.75% 9,940 10,437 10,959 11,507 12,082
STEP6
~~.4Hi
11,730
12,053
12,384
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TO:

FROM:

DATE:

LOsBanos
Agenda Staff Report
Mayor & City Council Members
Lucy Mallonee, MMC ~
City Clerk/Human Resources Director
June 19, 2024
SUBJECT: Changes to Division 5 - Personnel Benefits as it Pertains Monthly Health, Vision, Dental, Life Insurance Coverage Allowance for
Unrepresented/Miscellaneous Employees
TYPE OF REPORT: Consent Agenda
Recommendation:

Adopt the Resolution approving Amendments to Division 5 - Personnel Benefits of the City's Policy & Procedures Manual as it pertains to the monthly health, vision, dental, life coverage allowances for Unrepresented Miscellaneous Employees.

Discussion:

To maintain continuity throughout the City's workforce, staff is requesting changes to Division 5 - Personnel Benefits of the City's Policy & Procedure Manual as it relates to increasing the up to dollar amounts (caps) for monthly Dental, Vision, Life Insurance for all Unrepresented/Miscellaneous Employees; increasing the up to dollar amounts (caps) for Health Insurance for Unrepresented/Miscellaneous Employees hired on or after April 1, 2010 (Tier 2) over the next three (3) years so that by January 1, 2027 it will match what employees hired before April 1, 2010 (Tier 1) are entitled to; and ultimately streamlining all employees to the same level of up to dollar amounts (caps).

Currently the City pays up to a combined amount of $85 a month for vision, dental and life insurance for the employee's chosen level of coverage. For Unrepresented/Miscellaneous Employees, Staff is proposing to pay up to $100 a month for Dental coverage, up to $20 a month for Vision coverage and up to $10 a month for Life coverage for a total of $130.
379
Fiscal Impact:

The fiscal impact associated with this change has been evaluated and accounted for in the Fiscal Year 2024/2025 Budget. Staff will make the appropriate adjustments in the budget to reflect this change.

Vanessa Portillo, Finance Director
chments:

Resolution
380
RESOLUTION NO. --

A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF LOS BANOS AMENDING DIVISION 5,

PERSONNEL BENEFITS RELATING TO CHANGES

TO MONTHLY HEAL TH, VISION, DENTAL, LIFE

INSURANCE COVERAGE ALLOWANCES FOR

UNREPRESENTED/MISCELLANEOUS EMPLOYEES
WHEREAS, the City Council of the City of Los Banos has received a request that the Division 5, Personnel Benefits of the City Policy Manual be amended to reflect increases to the monthly health, vision, dental and life insurance coverage allowances July 1, 2024; and
WHEREAS, said request has been reviewed and approved by the City Council of the City of Los Banos at their regular meeting of June 19, 2024.

NOW, THEREFORE, BE IT RESOLVED that Division 5, Personnel Benefits of the City Policy Manual is hereby amended to reflect the changes as referenced above and is hereby approved as submitted as "Exhibit A" respectively.

A YES: Council Members
NOES:

ABSENT:

APPROVED:

Paul Llanez, Mayor
ATTEST:

Lucille L. Mallonee, City Clerk
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SEC. 5001 INTRODUCTION

EXHIBIT A
DIVISION 5

PERSONNEL BENEFITS
Updated: J1:1ly 21, 2021 June 19. 2024
The purpose of this Division is to identify the Employee Fringe Benefits Package as established by City Council Resolution.

SEC. 5002 FRINGE BENEFITS DEFINED
As used in this Division the term "Fringe Benefits" shall be construed to mean those specified rights, privileges, and payments provided by the City to an entitled employee as supplemental compensation above their base salary.

SEC. 5003 ENTITLED EMPLOYEES DEFINED
For the purposes of this Division, the term "Entitled Employee" refers to those persons who are employed in Regular (full-time) capacity with the City of Los Banos. Part-time, Provisional, and Volunteer Employees shall not be entitled to Fringe Benefit Compensation, except when such benefits are being provided by the City in accordance with: a) the requirements of a Federal or State Law, b) a written contractual agreement approved by the City, or c) a Memorandum of Understanding (MOU) between a specific employee or employee group and the City.

SEC. 5004 ESTABLISHMENT OF FRINGE BENEFITS
The Fringe Benefit Package for entitled employees is established by City Council Resolution for each fiscal year (July 1 - June 30) of the City.

SEC. 5005 BENEFITS PROVIDED TO ALL UNREPRESENTED REGULAR

EMPLOYEES
A. Medical (Health) Insurance Benefits
The City will contract with the California Public Employees Retirement System (CalPERS) for the purpose of providing employees with medical insurance benefits.

The City's maximum monthly contribution for each eligible active employee for the purchase of medical insurance will be equal to the minimum monthly employer contribution required under the Public Employees' Medical and Hospital Care Act (PEMHCA).

B. Cafeteria Plan
The City will maintain a Cafeteria Plan, pursuant to Section 125 of the Internal Revenue Code, for the purpose of providing employees with access to various health and welfare benefits and to provide minimal essential coverage for medical insurance Personnel Benefits
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to employees and qualifying dependents. Benefits available through the Cafeteria Plan include, but are not limited to, medical insurance, flexible spending accounts for out-of-pocket medical expenses and dependent care, vision insurance, dental insurance, and life insurance benefits. The City agrees to provide a Cafeteria Plan Allowance to all employees eligible to participate in City-sponsored health benefits under Section A of this Article. Any tax consequences resulting from City contributions to the Cafeteria Plan are the sole responsibility of the employee.

Employee enrollment in dental insurance, vision insurance, and the basic life insurance (maximum $50,000 pay out) plans offered by the City is mandatory; enrollment of qualifying dependents in City-offered dental and vision insurance is optional.

Employees enrolled in City-offered CalPERS medical insurance plans are not eligible to receive cash for unused portions of the cafeteria plan allowance.

1. Tier One: For employees hired by the City before April 1. 2010 and enrolled in City-offered CalPERS medical insurance, and not represented by a Cityrecognized bargaining unit,_7 - - ---+T!he City will provideJ. on a monthly basis, for the purpose of providing minimum essential coverage to employees and dependents, a Cafeteria Plan Allowance based on the employee's enrolled plan and level of health insurance eare coverage for medical, dental. vision, and basic life insurance ($50,000 pay out), up to the amounts listed. The City's contribution to medical, dental, vision, and life insurance (including the minimum PEMCHA contribution towards health) will not exceed the following amounts:

Medical Dental Vision Life
Employee Only $1,154 $100 $20 liQ
Employee +1 $2,308 $100 $20 liQ
Employee 2+ $3,000 $100 $20 liQ
The City will pay minimum monthly employer contribution required under the Public Employees Medical and Hospital Care Act (PEMHCA) to CalPERS. This will be deducted from the Cafeteria Plan Allowance listed above. ___ _ as provided below. The City Cafeteria Plan l\lloi.\'ance will be capped at the amounts listed below, and will not exceed the monthly premium for the plan at Personnel Benefits
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the level of coverage selected by the employee, minus the PEMHCA minimum employer contribution for medical insurance; plus eighty five dollars ($85) per month in recognition of premiums for City's life, dental and vision insurance plans.

Employees enrolled in City offered CalPERS medical insurance plans are not eligible to receive cash for unused portions of the cafeteria plan allowance. If the combined premiums for the employee's dental, vision and life insurance plans and level of coverage are less than eighty five dollars ($85) per month, the employee can apply the difference tov.:ard the employee's medical insurance premium.
• Employee Only: Up to one thousand eighty two dollars $1,082 per month; minus the PEMHC/\ minimum employer contribution for medical insurance; plus eighty five dollars ($85) per month in recognition of the premiums for enrollment in the City's life insurance (coverage up to $50,000), dental insurance and vision insurance plans.
• Employee Plus One: Up to ti.vo thousand one hundred sixty five dollars $2,165 per month; minus the PEMHCA minimum employer contribution for medical insurance; plus eighty five dollars ($85) per month in recognition of the premiums for enrollment in the City's life insurance (coverage up to $50,000), dental insurance and vision insurance plans.
• Employee Plus Family: Up to two thousand eight hundred fourteen dollars $2,814 per month; minus the PEMHCA minimum employer contribution for medical insurance; plus eighty five dollars ($85) per month in recognition of the premiums for enrollment in the City's life insurance (coverage up to $50,000), dental insurance and vision insurance plans.

Effective January 1, 2021, the Tier One monthly amounts 'Nill be adjusted as follows:
• Emplovee Onlv: Up to one thousand one hundred fifty four dollars $1,154 per month; minus the PEMHC/\ minimum employer contribution for medical insurance; plus eighty five dollars ($85) per month in recognition of the premiums for enrollment in the City's life insurance (coverage up to $50,000), dental insurance and vision insurance plans.
• Employee Plus One: Up to two thousand three hundred eight dollars $2,308 per month; minus the PEMHC/\ minimum employer contribution for medical insurance; plus eighty five dollars ($85) per month in recognition of the premiums for enrollment in the City's life insurance (coi.<erage up to $50,000), dental insurance and vision insurance plans.

Personnel Benefits
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Updated: July 21, 2021 June 19. 2024
• Employee Plus Family: Up to three thousand dollars $3,000 per month; minus the PEMHCA minimum employer contribution for medical insurance; plus eighty five dollars ($85) per month in recognition of the premiums for enrollment in the City's life insurance (coverage up to $50,000), dental insurance and •1ision insurance plans.

2. Tier Two: For employees hired by the City on or after April 1, 2010 and enrolled in City-offered CalPERS medical insurance, and not represented by a City-recognized bargaining unit~~
he
+Re-City will provide, on a monthly basisJ., for the purpose of providing minimum essential coverage to employees and dependents, a Cafeteria Plan Allowance, based on the employee's enrolled plan and level of health insurance Gafe--coverage for medical, dental, vision, and basic life insurance ($50,000 pay out), and up to the amounts listed. The City's contribution to medical, dental, vision, and life insurance (including the minimum PEMCHA contribution towards health) will not exceed the following amounts:

Effective July 1, 2024:

Medical Dental
Employee Only $1 I 154
Employee + 1 $2,100
Employee 2+ $2,650
Effective January 1, 2025:

Medical
Employee Only $1,154
Employee +1 $2,165
Employee 2+ $2,755
Effective January 1, 2026:

Medical
Employee Only $1,154
Employee +1 $2,270
Employee 2+ $2,860
Effective January 1, 2027:

Medical
Employee Only $1,154
Employee +1 $2,308
$100
$100
$100
Dental
$100
$100
$100
Dental
$100
$100
$100
Dental
$100
$100
Personnel Benefits
5-4
Vision Life
$20 i1Q
$20 i1Q
$20 i1Q
Vision Life
$20 i1Q
$20 i1Q
$20 i1Q
Vision Life
$20 i1Q
$20 i1Q
$20 i1Q
Vision Life
$20 i1Q
$20 i1Q
386
Updated: July 21, 2021 June 19. 2024
I Employee 2+ I $3,000 I lli
as provided below. The City Cafeteria Plan Allowance will be capped at the amounts listed below, and 'Nill not e*ceed the monthly premium for the plan and level of coverage selected by the employee, minus the PEMHCA minimum employer contribution for medical insurance; plus eighty five dollars ($85) per month in recognition of the premiums for enrollment in the City's life, dental and vision insurance plans.

Employees enrolled in City offered CalPERS medical insurance plans are not eligible to receive cash for unused portions of the cafeteria plan allowance. If the combined premiums for the employee's dental, vision and life insurance plans and level of coverage are less than eighty five dollars ($85) per month, the employee can apply the difference to·Nard the employee's medical insurance premium.
• Employee Only: Up to one thousand eighty two dollars $1,082 per month; minus the PEMHCA minimum employer contribution for medical insurance; plus eighty five dollars ($85) per month in recognition of the premiums for enrollment in the City's life insurance (coverage up to $50,000), dental insurance and vision insurance plans.
• Employee Plus One: Up to one thousand nine hundred forty eight dollars $1,948 per month; minus the PEMHCA minimum employer contribution for medical insurance; plus eighty five dollars ($85) per month in recognition of the premiums for enrollment in the City's life insurance (coverage up to $50,000), dental insurance and vision insurance plans.
• Employee Plus Family: Up to two thousand two hundred fifty one dollars $2,251 per month; minus the PEMHCA minimum employer contribution for medical insurance; plus eighty five dollars ($85) per month in recognition of the premiums for enrollment in the City's life insurance (coverage up to $50,000), dental insurance and vision insurance plans.

Effective January 1, 2021. the Tier Tu,o monthly amounts 'Nill be adjusted as follo•Ns:
• Employee Only: Up to one thousand one hundred fifty four dollars $1,154 per month; minus the PEMHCA minimum employer contribution for medical insurance; plus eighty five dollars ($85) per month in recognition of the premiums for enrollment in the City's life insurance (coverage up to $50,000), dental insurance and vision insurance plans.
• Employee Plus One: Up to two thousand seventy seven $2,077 per month; minus the PEMHCA minimum employer contribution for medical insurance; plus eighty five dollars ($85) per month in recognition of the premiums for enrollment in the City's life insurance (coverage up to $50,000), dental Personnel Benefits
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•
Updated: July 21, 2021 June 19, 2024
insuranoe and vision insuranoe plans.

Employee Plus Family: Up to two thousand four hundred dollars $2,400 per month; minus the PEMHCA minimum employer oontribution for medical insuranoe; plus eighty five dollars ($85) per month in recognition of the premiums for enrollment in the City's lif-e insurance (ooverage up to $50,000), dental insurance and vision insurance plans.

3. Employee enrollment in the City-provided life insurance plan and City-provided dental and vision plans is mandatory.

4. Any increase to minimum monthly employer contribution under PEMHCA will result in a corresponding decrease in the employee's Cafeteria Plan Allowance.

5. Employees who opt out of participating in the group medical plans sponsored by the City, and who provide proof of their medical coverage in a group plan, will receive a Cafeteria Plan Allowance of $40085 per month, of whioh part must be used to enroll in mandatory lif-e insuranoe, dental insuranoe and vision insurance cm.1erage.

6. Dental, -aAG Vision. and Life Insurance: Employee enrollment in dental insurance, vision insurance. and the basic life insurance plans offered by the City is mandatory, including for employees who opt out of City health insurance plans.

Dental Vision Life
Employee Only $100 $20 11.Q
Employee +1 $100 $20 11.Q
Employee 2+ $100 $20 11.Q
Enrollment of qualifying dependents in City-offered dental insurance, vision insurance. and life insurance is optional.

For employees who opt out of City-provided medical insurance, City monthly contributions to dental, vision and life insurance (maximum $50,000 pay out plan) will be based on the employee's enrolled plan. City contributions will not exceed the amounts listed above.

The City will contribute to the employee's Caf-eteria Plan Allowance (as indicated above in Caf-eteria Plan Allowanoe description).

7. Lif-e Insurance: The City will pay the full premium cost for $50,000 ooverage in City approved Lif-e Insurance for the entitled employee.

C. Retirement Program
Personnel Benefits
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1. Miscellaneous Employees: Regular employees, hired before January 1, 2011 will receive a CalPERS retirement benefit based on the 2.7% @ 55 formula as set forth in CalPERS regulations. The City shall pay the full share of the employer contribution to CalPERS. The employee will be responsible to pay the employee contribution to the CalPERS 2.7%@ 55 Plan.

Regular employees, hired on or after January 1, 2011, will receive a CalPERS retirement benefit based on the 2% @ 60 formula as set forth in CalPERS regulations. The City shall pay the full share of the employer contribution to CalPERS. The employee will be responsible to pay the employee contribution to the CalPERS 2% @ 60 Plan.

Qualifying employees hired on or after January 1, 2013 and considered new members of CalPERS as defined by the Public Employee Pension Reform Act (PEPRA) will receive the 2% at age 62 retirement formula, and shall be subject to the provisions of PEPRA, including provisions governing reportable compensation.

2. Public Safety Employees: Regular employees, hired before January 1, 2011 will receive a CalPERS retirement benefit based on the 3% @ 50 formula as set forth in CalPERS regulations. The City shall pay the full share of the employer contribution to CalPERS. The employee will be responsible to pay the employee contribution to the CalPERS 3% @ 50 Plan.

Regular employees, hired on or after January 1, 2011, will receive a Cal PERS retirement benefit based on the 3% @ 55 formula as set forth in CalPERS regulations. The City shall pay the full share of the employer contribution to CalPERS. The employee will be responsible to pay the employee contribution to the CalPERS 3% @ 55 Plan.

Qualifying employees hired on or after January 1, 2013 and considered new members of CalPERS as defined by the Public Employee Pension Reform Act (PEPRA) will receive the 2.7% at age 57 retirement formula, and shall be subject to the provisions of PEPRA, including provisions governing reportable compensation.

D. Retiree Medical

1. The City will provide access to medical insurance coverage for those employees who retire from employment with the City and who constitute "annuitants" as defined by the PEMHCA.

The City's maximum monthly contribution for each eligible annuitant will be equal to the minimum employer contribution required under the PEMHCA, referred to in Section IV(A). The provisions of the PEMHCA will govern medical insurance coverage for annuitants.

Personnel Benefits
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2. Employees hired before October 1, 2002 and who, at the time of retirement, constitute an "annuitant" as defined by the PEMHCA, will receive the following:
a. From the date of retirement and until such time the retiree becomes eligible for Medicare, the City will contribute an amount equal to the health plan premium cost for the employee's elected health care plan up to the amount of the premium for the Blue Shield Health Maintenance Organization (HMO) or if the Blue Shield HMO is not offered in the area, rates are based on the lowest available plan offered by CalPERS, less the City's minimum monthly employer contribution under PEMHCA.
b. Upon attaining Medicare eligibility, the City will contribute an amount equal to the health plan premium cost for the elected health care plan up to the amount of the premium for the Blue Shield Health Maintenance Organization (HMO) or if the Blue Shield HMO is not offered in the area, rates are based on the lowest available plan offered by CalPERS, supplemental Medicare plan, offered by CalPERS, less the amount of the City's minimum monthly employer contribution under PEMHCA. c. Employees will not be entitled to City payments, as specified above, during employment.

3. Employees hired between October 1, 2002 and June 30, 2008 and who, at the time of retirement, constitute an "annuitant" as defined by the PEMHCA, will receive the following :
a. From the date of retirement and until such time that the retiree becomes eligible for Medicare, the City will contribute an amount to cover fifty percent (50%) of the Blue Shield Access HMO plan for employees with ten (10) years of service, plus an additional five percent (5%) of the cost of the Blue Shield Access HMO plan for each additional year of service beyond ten ( 10) years, up to one-hundred percent ( 100%) of the Blue Shield Access HMO plan after twenty (20) years of service, less the amount of the City's minimum monthly employer contribution under PEMHCA. b. Upon attaining Medicare eligibility, the City's contribution will equal the cost of fifty percent (50%) of the supplemental Medicare plan offered by CalPERS for employees with ten (10) years of service, plus an additional five percent (5%) of the cost of the supplemental Medicare plan offered by CalPERS for each additional year of service beyond ten (10) years, up to one-hundred percent (100%) of the supplemental Medicare plan offered by CalPERS after twenty (20) years of service, less the amount of the City's minimum monthly employer contribution under PEMHCA.
c. Employees will not be entitled to City payments, as specified above, during employment.

Personnel Benefits
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E. Retirement Health Savings Plan (RHSP): For Employees hired on or after July 1, 2008: The City of Los Banos has established a program to which the City and employees participate to save, on a tax deferred basis, money to help pay the cost of healthcare once an individual retires. The RHSP may be used for expenses as provided under the terms of the Plan. Any tax consequences resulting from City contributions to the RHSP are the sole responsibility of the employee. Participation is mandatory for all employees.

1. Participation is mandatory for all employees.

2. Starting after an employee has successfully completed his or her initial probationary period, the City will contribute $75 per month to the employee's RHSP account. Likewise the employee will contribute $75 per month to his or her RHSP account.

3. During an employee's initial hire probationary period with the City, neither the employee nor the City will contribute to the employee's RHSP account. Upon successful completion of the initial hire probationary period, the City will contribute a lump sum of $75 per month for each month served in the employee's initial probationary period.

4. Upon cessation of employment with the City, the City will cease contributions to the individual's RHSP account.

F. Workers' Compensation Insurance: Workers' Compensation Insurance Benefits (Workers' Compensation) are provided in accordance with the requirements of State Law.

Special Note: California Labor Code Sections 4650, for Miscellaneous Employees; and 4850, for Public Safety Employees, specifically addresses entitlement for paid time off work when disabled due to job injury.

G. Deferred Compensation: The City shall provide the opportunity for entitled employees to participate, at their own expense, in a Deferred Compensation Program.

H. Group Continuation of Health and Life Insurance: Federal Legislation (P.L. 99-272, the Consolidated Omnibus Budget Reconciliation Act - COBRA) requires agencies with 20 or more employees to continue health care coverage for terminated employees and for widows, ex-spouses and dependents of employees for eighteen (18) to thirty-six (36) months for certain qualifying events. Such benefits are provided at the expense of the employee or entitled relative or dependent. This area is addressed more extensively in the CalPERS Group Continuation Plan.

Personnel Benefits
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Updated: Jblly 21, 2021 June 19, 2024
I. Tuition Reimbursement: Subject to administrative approval, the City shall reimburse entitled employees for education-related expenses in accordance with City of Los Banos Tuition Reimbursement Policy; Division 5-A.

J. Sick Leave Benefits: Sick Leave, will be provided to all eligible employees in accordance with the guidelines set forth in the City of Los Banos Sick Leave Benefits Policy; Division 5-8.

K. Vacation Leave Benefits: Vacation Leave will be provided to all eligible employees in accordance with the guidelines set forth in the City of Los Banos Vacation Leave Policy; Division 5-C.

L. Holiday Leave Benefits: Holiday Leave will be provided to all eligible employees in accordance with the guidelines set forth in the City of Los Banos Holiday Leave Policy; Division 5-E.

M. Catastrophic Leave: Catastrophic Leave Donations will be provided to all eligible employees in accordance with the guidelines set forth in the City of Los Banos Catastrophic Leave Donation Policy; Division 5-D.

N. Education Incentive Pay: Educational Incentive Pay will be provided to all qualifying employees in accordance with the City of Los Banos Education Incentive Pay Policy for specific guidelines; Division 5-H.

0. Bilingual Incentive Pay: Bilingual Incentive Pay will be provided to certain employees in accordance with the City of Los Banos Bilingual Incentive Pay Policy for specific guidelines; Division 5-L.

P. Uniform Reporting: The City will report the monetary value of uniforms and uniform maintenance per California Code of Regulations Section 571 for those employees required to wear uniforms, except those CalPERS members who fall under the PEPRA. The uniform purchase and maintenance amount reported to CalPERS will be derived from the City's total calendar year cost for providing the employee's uniforms, not to exceed $1,000.00 per fiscal year, per employee (effective retroactively to July 1, 2011 ).

SEC. 5006 BENEFITS PROVIDED TO ALL REGULAR EMPLOYEES: EXCEPT

MANAGERS AND MIDDLE MANAGERS
A. Compensatory Time Off: All eligible Regular Employees shall, at their choice, be permitted to accrue Compensatory Time Off (CTO) in lieu of receiving overtime pay for hours worked in excess of normal duty assignments. See City of Los Banos Compensatory Time Off Policy for specific guidelines governing this practice; Division 5-F.

Personnel Benefits
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B. Overtime Compensation: All eligible Regular Employees shall be entitled to Overtime Compensation in accordance with the guidelines set forth in the City of Los Banos Overtime compensation Policy; Division 5-G.

SEC. 5007 BENEFITS PROVIDED TO POLICE DEPARTMENT EMPLOYEES ONLY A. Lateral Transfer Incentive Pay
Effective September 18, 2002, the City Council established Lateral Transfer Incentive Pay not to exceed $3,000.00. The Police Chief will have authority with concurrence of the City Manager to offer the pay incentive to lateral transfer police officer applicants.

This offer may vary based on the previous experience of the applicant. This incentive pay could also be used to pay for a police academy loan or relocation costs.

The Police Chief shall provide written notification to the Human Resources Director and City Manager when a Police Officer is to receive the Lateral Transfer Incentive Pay.

B. Peace Officer Standards and Training (P.O.S.T.) Certificate Incentive Pay - Unrepresented Sworn Personnel
Employees who have been approved by the Chief of Police, and also including the Chief of Police, will be entitled to receive the following compensation when they have been awarded and hold the specified California Commission on Peace Officer Standards and Training Certificate as follows:
1) $150 per month for a P.O.S.T. Intermediate Certificate, or 2) $225 per month for a P.O.S.T. Advanced Certificate, or 3) $275 per month for a P.O.S.T. Supervisory Certificate.

C. Peace Officer Standards and Training (P.O.S.T.) Certificate Incentive Pay - Unrepresented Non-Sworn Personnel
1) $50 per month for a P.O.S.T. Intermediate Dispatcher Certificate, and 2) $75 per month for a P.O.S.T. Public Safety Dispatcher Supervisory Certificate, and
3) $100 per month for a P.O.S.T. Records Supervisor Certificate Not to exceed $175 per month for any combination of the above.

SEC. 5008 BENEFITS PROVIDED FOR CERTAIN PARTICIPATING EMPLOYEES State Disability Insurance: The City allows for participation in the State Disability Insurance (SDI) Program for those employee groups who desire such option. Payment of SDI premiums is the responsibility of participating employees. See City of Los Banos State Disability Income (SDI) Policy for specific employee groups currently involved in this program and clarification of the City's position with regard to their participation; Division 5-1.

Personnel Benefits
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SEC. 5009 BENEFITS PROVIDED TO CERTAIN PUBLIC WORKS EMPLOYEES A. Certificate Pay/Water and Wastewater Division Employees

1. Public Works employees shall be entitled to receive the following compensation when they have been awarded and hold the specified certificate issued by the State of California, Department of Health Services Water/Wastewater Treatment; a) $50.00 per month for Grade II, and b) $25.00 per month for Grade I.

2. Public Works employees shall be entitled to receive the following compensation when they have been awarded and hold the specified certificate issued by the State of California, Department of Health Services Water Distribution; a) $25.00 per month for Grade 11, and b) $50.00 per month for Grade Ill.

3. Employees holding these certificates may be simultaneously compensated for; a) Water Treatment and Water Distribution Certificates, or b) Wastewater Treatment and Water Distribution Certificates. Employees holding these certificates shall not be simultaneously compensated for Water Treatment and Wastewater Treatment certificates.

4. Compensation shall not exceed $100.00 per month for any combination of certificates.

5. In order to continue to receive this benefit certified employees will be required to submit proof of re-certification to the City Manager as soon as it is issued.

B. Applicator Certificate & License Pay/Parks & Streets Division Employees

1. Public Works employees shall be entitled to receive the following compensation when they have been awarded and hold the specified certificates or license as issued by the State of California, Department of Pesticide Regulation; a) $50.00 per month for Pesticide License, b) $25.00 per month for a Qualified Applicator Certificate, and c) $25.00 per month for each additional category endorsement, maximum three (3) categories will be allowed and/or compensated for.

2. Employees holding these certificates and/or licenses can be compensated for a) Qualified Applicator License or b) Qualified Applicator Certificate. In no case shall the employee be compensated for both. Category compensation shall be limited to the following categories, B-Landscape Maintenance, C-Right of Way, D-Plant Agriculture, F-Aquatic, K-Health Related.

3. Compensation shall not exceed $100.00 per month for any combination of licenses/certificates.

4. In order to remain eligible for compensation, Certificated/Licensed employees shall be required to submit proof of certificate or license to the Human Resources Personnel Benefits
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Updated: July 21 , 2021 June 19, 2024
Director and department head as soon as it is issued. In addition employees shall be required to maintain their licenses and/or certificates as required by the State of California Department of Pesticide Regulation in order to be eligible for continued compensation. Proof of current valid licenses or certificates shall be submitted annually.

C. Arborist Certificate Pay
Certain Public Works employees shall be entitled to receive the following compensation when they have been awarded and hold an Arborist Certificate issued by the International Society of Arboriculture; $200.00 per month.

SEC. 5010 BENEFITS PROVIDED FOR CITY HALL EMPLOYEES
A. Notary Public Pay

1. Certain City Hall employees shall be entitled to receive the following compensation when they have been awarded and hold a Notary Public Certificate issued by the State of California, Department of Secretary of State; $100.00 per month.

2. The number of persons will be limited to one (1) from each of the following departments at City Hall: Community Development, Finance, and two (2) from Administration.

3. Employees receiving the Notary Public Certificate Pay will be required to notarize documents when requested by the public or City staff during normal business hours.

8. Municipal Clerk Certification Pay
All City Hall employees shall be entitled to receive the following compensation when they have been awarded a Certified Municipal Clerk (CMC) or Master Municipal Clerk (MMC) Certificate and Designation from the International Institute of Municipal Clerks (IIMC); $100.00 per month.

SEC. 5011 BENEFITS PROVIDED FOR MANAGEMENT AND MIDDLE MANAGEMENT

EMPLOYEES ONLY
A. Admin Leave for Management Employees: As designated in job description, Management employees who are not entitled to accrue compensatory time off or receive overtime pay for hours worked in excess of regular duty time, shall be entitled to ten (10) work days off, with full salary and benefits, during every fiscal year of employment in such positions.

8. Admin Leave for Middle Management Employees: As designated in job description, Middle Management employees, who are not entitled to accrue compensatory time Personnel Benefits
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off or receive overtime pay for hours worked in excess of regular duty time, shall be entitled to five (5) work days off, with full salary and benefits, during every fiscal year of employment in such position. New Middle Management employee hired after the July 1st accrual date will be prorated accordingly. If Admin Leave is not taken during the Fiscal Year it was earned, it will not be carried over and the employee will lose his/her right to the unused days. Further, a Middle Management employee who leaves the City employment shall not be compensated for any unused Admin Leave to which he/she would otherwise have been entitled.

C. Pro-ration: New Management and Middle Management employees hired after the July 1st accrual date will be prorated accordingly. If Admin Leave is not taken during the fiscal year it was earned, it will not be carried over and the employee will lose his/her right to the unused days. Further, a Management or Middle Management employee who leaves City employment shall not be compensated for any unused Admin Leave to which they would otherwise have been entitled.

SEC. 5012 BENEFITS PROVIDED FOR MAYOR AND CITY COUNCIL MEMBERS A. Cell Phone Allowance
The Mayor and City Council Members shall be entitled to receive a monthly cell phone allowance in the amount of $75.00. Proof of a current cell phone contract plan is to be provided to receive cell phone allowance.

SEC. 5013 BENEFITS PROVIDED TO QUALIFYING PART-TIME EMPLOYEES Effective July 1, 2015, if a Part-time employee is qualifying and elects health insurance coverage while employed with the City, the City shall contribute the following amounts toward the premiums for the cost of CalPERS health coverage for the employee and eligible dependents: a) 30-39 hours worked per week - 50% of the Blue Shield Access (HMO) premium; minus the PEMHCA minimum employer contribution toward monthly health insurance premium; b) 0-29 hours worked per week - No contribution will be made toward a health insurance premium.

SEC. 5014 BENEFITS NOT COVERED IN THIS DIVISION STATEMENT Any employee benefits not covered in this Division that are required to be offered under provision of State or Federal Law or in conformity with an existing labor agreement, shall be provided.

Personnel Benefits
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TO:

FROM:

DATE:

SUBJECT:

TYPE OF REPORT:

Recommendation
LOsBanos , t u n.s~road oj <1lifi
Mayor Llanez and City Council Members
Vanessa Portillo, Finance Director c,'tf> •
June 19, 2024
Establishing a revised schedule of water, wastewater and solid waste rates.

Public Hearing
Conduct a Public Hearing in accordance with the requirements of Proposition 218 to complete the following:

1. Count and publicly announce the results of the protest voting, upon conclusion, if there is no majority protest,

2. Consider adopting the resolutions establishing increased Water, Wastewater and Solid Waste rates for the ensuing five years.

Background
On April 17, 2024 Council authorized staff to initiate the Proposition 218 process, which advises property owners and utility customers of proposed water, wastewater, and solid waste adjustments. The adjusted rates are designed to keep our utility service reliable, while strategically investing in infrastructure.

Historically, the City of Los Banos has used the San Francisco Bay area Consumer Price Index (CPI) as the most accurate index available to our Central Valley area. The proposed annual rate increases are tied to the CPI for the San Francisco Area, not to exceed 3.5% annually. In the first year, beginnir:,g July 1, 2024 the total charge (for water, wastewater, and solid waste rate combined) would increase by $2.44 for the average customer. In the following years, the exact annual adjustment would not be available until the yearly CPI number is released. However, the increase is to not exceed 3.5% in any given year.

Proposition 218
Fees and charges for all municipal utilities of the City are subject to the requirements of Proposition 218. Proposition 218, was approved by California Voters in November 1996.

In compliance with Proposition 218, the City is required to mail notices to all affected property owners and rate ·payers informing them of the proposed rate increase. Proposition 218 does not require voter approval to increase fees and charges; however, if written protest from a majority of the property owners or utility customers are receive, the City cannot impose the 397
increase. In determining if a majority protest exists, only one written protest per parcel may be considered.

On May 1, 2024, the City mailed notices to approximately 13,400 property owners and utility customers. The notice showed the maximum proposed rates to be adopted over the five (5) year period. The notice included information on how to submit a written protest and information regarding the June 19, 2024 Public Hearing. Additionally, on April 29, 2024 and June 6, 2024, the public hearing notice was published in the Merced Sun-Star.

Discussion
The last rate increase was effective July 1, 2019. Since that time annual inflationary increases in the water and wastewater rates have been outpaced by the rising costs of electricity, equipment, supplies, and increases to both salaries and benefits. In order to continue the existing level of services these costs must be recovered by increasing the rates collected from users. Additionally, the City contracts the collections, transportation and disposal of solid waste services. The solid waste contract includes an annual increase to the contractor's compensation based on CPI for the San Francisco Bay Area.

Overview of Rate Increases
The City provides water, wastewater, and solid waste services to all residential, commercial and industrial users. Each of these services must comply with Federal and State regulations concerning potable water quality, wastewater effluent quality, and recycling programs. The City has endeavored to maintain affordable utilities to city residents and businesses. The City last conducted a five (5) year Rate Increase Study in early 2019. All rates are calculated to recover the costs of providing the services and to proportionately allocate those costs on a per parcel basis among the various customer classes.

Water services involve both the production as well as distribution of potable water. Water rate changes are needed to adequately fund operation and maintenance activities to meet current customer needs and to comply with state and federal regulatory requirements. Projected operation and maintenance cost increase include power to operate facilities, water treatment, and personnel costs.

Wastewater service includes collection, treatment, and disposal of wastewater. For wastewater, proposed changes are based on increased costs associated with increased operational costs including rising electricity costs to operate facilities and increased labor costs.

Solid waste services include collection, disposal, and recycling services for which the City contracts with Mid Valley Disposal. Additionally, the City maintains the Street Sweeping division as part of the Solid Waste Department. The rates for the solid waste service fees for residential customers are comprised of a fixed monthly charge based on the size of the refuse container used for such property. For commercial customers, the rates are comprised of a fixed monthly charge that is determined on the basis of the refuse container used to serve such property and the frequency of pick-ups. Solid Waste increases encompass rising operation costs including an annual contractual increase to our service provider, also based on the San Francisco Bay area CPI.
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The chart below outlines possible increases for a single-family household, assuming increases are at the maximum increase of 3.5%.

Summary of Minimum Single-Family Billing
Current FY 2025 (i l FY 2026 (2 l FY 2027 (2 l FY 2028 (2 l FY 2029 (2 l Water
Minimum Bill $ 24.55 c;
... 25.14 $ 26.02 $ 26.93 $ 27.87 $ 28.85
Monthly Increase $ 0.59 .~ 0.88 $ 0.91 .~ 0.94 c ;, ;, .... 0.98 Wastewater
f\J1inimum Bill $ 31.52 $ 32.28 $ 33.41 $ 34.58 $ 35. 79 $ 37.04 Monthl ~1 Increase $ 0, 76 $ 1.13 $ 1.17 $ 1.21 $ 1. 25 Solid Waste
Minimum Bill $ 45,50 $ 46.59 $ 48.22 $ 49.91 $ 51.66 $ 53.47 Monthly Increase $ 1.09 $ 1. 63 $ 1.69 $ 1. 75 $ 1. 81
Combined
Minimum Bill $ 101.57 $ 104.01 $ 107.65 $ 111.42 $ 115.32 $ 119, 35 Monthly Increase $ 2.44 $ 3.64 $ 3.77 c·
.... 3.90 $ 4.04
Annual Increase $ 29.25 $ 43.68 $ 45.21 $ 46.79 $ 48,43 (1) Proposed CPI increase of 2.4%
(2) Projection based on maximum CPI of 3.5%
The additional funding will allow the City to offset the effects of inflation on labor, supplies, and services; the proposed fee is based on the CPI, but will be limited to 3.5% in a single year, which is applied to the existing fee annually.

Fiscal Impact
The City adopted its Fiscal Year {FY} 2024/25 budget on June 5, 2024. Revenue projections did not include potential rate increases. However, the City accounted for increases to supplies and services, and some labor costs. Without the rate increases, the City would have to adjust its projections for current and future capital needs. Capital reserves will be utilized to sustain ongoing operation and maintenance costs.

Attachments:

Resolutions (3 )
Public Hearing Notice
399

THIS PAGE IS INTENTIONALLY LEFT BLANK
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Dear Property Owner/fenant:

PROPOSITION 218 NOTIFICATION
Notice of Public Hearing
Regarding Proposed Rate Increases in Water, Wastewater and Solid Waste Service Fees The City of Los Banos is proposing a five-year water, wastewater and solid waste rate program adjustment for all residents and commercial customers. A public hearing on the proposed rate increases to water, wastewater and solid waste service fees will be held by the City Council on:

Date:

Time:

Place:

Wednesday,June19,2024
6:00 p.m.

City of Los Banos, Council Chambers
520 J Street, Los Banos, CA 93635
This notice is being sent to all City property owners and tenants directly liable for the payment of the utility service fees. If adopted, the proposed new rates will take effect July 1, 2024, with annual CPI increases each July 1, up to and including July 1, 2028. This notice also describes how to file a protest to this proposed action. All property owners, tenants directly liable for the payment of water, waste water, and solid waste service fees, and other interested parties are invited to attend the public hearing and be heard on the matter.
- - - - - --~ -- - --
The last rate increase was effective July 1, 2020 thru June 30, 2024. Since that time, annual inflationary increases in the water and wastewater rates are necessary to keep pace with the rising costs of electricity, equipment, supplies, and increases to salaries and benefits. In order to continue the existing level of services these costs must be recovered by increasing the cost of services.

Additionally, the City contracts the collections, transportation and disposal of solid waste services. The solid waste contract includes an annual increase to the contractor's compensation based on the Consumer Price Index (CPI) for the San Francisco - Oakland - Hayward, CA Area.

PROPOSED ANNUAL RATE INCREASE (BASED ON CPI ADJUSTMENTS): The City Council will consider an annual rate increase which will be tied to the Consumer Price Index (CPI) for the San Francisco - Oakland - Hayward, CA Area not to exceed

3.5%. As such, the exact annual adjustment to water, wastewater, and solid waste rates would not be available until the yearly CPI number is released; this is not to exceed 3.5%. Based on the CPI data from 2019 through 2023, the average yearly adjustments was

3.5%, with a typical range from 1.7% to 5.6%. The proposed increases shown below would take place over the next five (5) years (through FY 2023/2024), after which time no further automatic adjustments would take place absent a new notice and hearing pursuant to Proposition 218. If implemented, the CPI rate increase changes will take effect starting July 1, 2024. Customers will be notified annually of the exact increase on their June water bill.

The 2024 CPI February index is 2.4%. If implemented, the CPI rate increase will take effect starting July 1, 2024; the exact rate increase for the first year would be 2.4%.

The rates stated in this notice, will not be increased above the rates stated without further written notice to the City's customers and a further protest hearing pursuant to Proposition 218 except as permitted by Government Code Section 53756.

How to be heard or protest the proposed adjustments:

Any property owner or any tenant directly responsible for the payment of water, wastewater, and/or solid waste service fees (i.e., a customer of record) may submit a written protest to the proposed rate increases described above; provided, however, only one protest will be counted per identified parcel. Any written protest must: (1) state the specific rate increase (water, wastewater, and/or solid waste) for which the protest is being submitted; (2) provide the location of the identified parcel (by assessor's parcel number, street address, or customer account number); and (3) include the name and signature of the property owner or tenant submitting the protest.

Written protests may be submitted by mail or in person to the City Clerk at 520 J Street, Los Banos, CA 93635, or at the Public Hearing, so long as they are received prior to the conclusion of the public comment portion of the Public Hearing. Any protest submitted via e-mail or other electronic means will not be accepted. Postmarks also cannot be accepted. Please identify on the front of the envelope for any protest, whether mailed or submitted in person to the City Clerk, that the enclosed protest is for the Public Hearing on the Proposed Increases to Utility Rates.
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The City Council will hear and consider all written protests and oral comments to the proposed rate increases at the Public Hearing.

Oral comments at the Public Hearing will not qualify as formal protests unless accompanied by a written protest as described above.

Upon the conclusion of the Public Hearing, the City Council will consider adoption of the proposed rate increases for the water, wastewater, and solid waste service fees as described herein. If written protests against the proposed rate increases are not presented by a majority of the property owners and tenants of the identified parcels upon which the rates are proposed to be imposed, the City Council will be authorized to impose the respective rate increases. If a majority of property owners and tenants directly liable for payment of the utility service fees submit written protests, the proposed rates may not be adopted and the existing rate structures will continue to be used until another rate structure is adopted.

For more information or questions about the proposed rate increase you may contact the Finance Department at 209-827-7000 or visit the City's website for the Utility Rate Studies at www.losbanos.org.

Proposed Rate Increases are based on 3.5% maxim um increase. Actual rate increase may be less based upon the CPI*
* Consumer Price Index (CPI) to be applied is the San-Francisco-Oakland-Hayward, CA Area, All Urban Consumers; 1982- 84 =100, Not Seasonally Adjusted, between the most recently published February index and the corresponding index published twelve months earlier, or 3.5% whichever is less.

Proposed Water Increases
The rates for the City's water service fees are comprised of two components - fixed monthly service charge and a water usage charge.

The water usage charge is imposed for monthly water usage in excess of 1,500 cubic feet of metered water. The rates are calculated to recover the costs of providing water services and to proportionately allocate those costs on a parcel basis among the various customer classes. The proposed rates and their effective dates are set forth in the tables below:

Proposed Monthly Water Rates
July 1, 2024 July I, 2025 July I, 2026 July 1, 2027 July 1, 2028

2.4% CPI* not to CPI* not to CPI* not to CPI* not to Percentage Increase exceed 3.5% exceed 3.5% exceed 3.5% exceed 3.5% Residential Current Year 1 Year2 Year3 Year4 Years Rate Meters < l" $24.55 $25.14 $26.02 $26.93 $27.88 $28.85
Meters 1"- 1 ½" $29.90 $30.62 $31.69 $32.80 $33.95 $35.14 Meters 1 ½" - 2" $34.46 $35.28 $36.52 $37.80 $39.12 $40.49 Meters 2" - 3" $39.35 $40.29 $41.70 $43.16 $44.67 $46.24 Meters 3"- 4" $49.16 $50.34 $52.10 $53 .93 $55.82 $57.77 Multiple Family> 1 unit Flat+ $8.73 Flat+ $8.94 Flat + $9.25 Flat + $9.58 Flat+ $9.91 Flat+ $10.26 per unit per unit per unit per unit per unit per unit
Overage per 100 cubic feet $1.90 $1.95 $2.01 $2.08 $2.16 $2.23 Commercial
Meters < 1" $24.55 $25.14 $26.02 $26.93 $27.88 $28.85
Meters 1"- l½" $29.90 $30.62 $31.69 $32.80 $33.95 $35.14 Meters 1 ½"- 2" $34.46 $35.28 $36.52 $37.80 $39.12 $40.49 Meters 2" - 3" $39.35 $40.29 $41.70 $43.16 $44.67 $46.24 Meters 3"- 4" $49.16 $50.34 $52.10 $53.93 $55.82 $57.77 Meters > 4" Determined by Public Works Department
Multiple Commercial > 1 Flat+ $8.73 Flat + $8.94 Flat + $9.25 Flat+ $9.58 Flat+ $9.91 Flat+ $10.26 unit per unit per unit per unit per unit per unit per unit Overa~e per 100 cubic feet $1.90 $1.95 $2.01 $2.08 $2.16 $2.23 Allowance amount for all users = 1,500 cubic feet per month.

Any usa.P,e over 1,500 cubic feet will be charged an overage rate per each 100 cubic feet 402
Proposed Wastewater Increases
The rates for the City's wastewater service fees for residential customers are comprised of a fixed monthly service charge. For nonresidential customers, the rates are comprised of a fixed monthly service charge and a flow-based charge. The rates are calculated to recover the costs of providing wastewater services and to proportionately allocate those costs on a parcel basis among the various customer classes. The proposed rates and their effective dates are set forth in the tables below:

Proposed Monthly Wastewater Rates
July 1, 2024 July 1, 2025 July 1, 2026 July 1, 2027 July I, 2028

2.4% CPI* not to CPI* not to CPI* not to CPI* not to
Percentage Increase exceed 3.5% exceed 3.5% exceed 3.5% exceed 3.5% Current Year 1 Year2 Year3 Year 4 Year5 Rate
Residential
Wastewater Collection
Flat $21.96 $22.49 $23.27 $24.09 $24.93 $25.80
Multiple Dwelling/Trailer $21.96 + $22.49 + $23.27 + $24.09 + $24.93 + $25.80 + Parks with common sewer $21. 96/unit $22.49/unit $23 .27 /unit $24.09/unit $24.93/unit $25.80/unit Wastewater Treatment
Flat $9.55 $9.78 $10.12 $10.48 $10.84 $11.22
Multiple Dwelling/Trailer $9.55 + $9.78 + $10.12 + $10.48 + $10.84 + $11.22 + Parks with common sewer $9.55/unit $9.78/unit $10 .12/unit $10 .48/unit $10.84/unit $11.22/unit Commercial
Wastewater Collection
Flat $43.91 $44.96 $46.54 $48.17 $49.85 $51.60
Hotel & Motels $43.91 $44.96 $46.54 $48.17 $49.85 $51.60 Per room with kitchen $10.83 $11.09 $11.48 $11.88 $12.30 $12.73 Per room w/o kitchen $5.47 $5 .60 $5.80 $6.00 $6.21 $6.43 Schools per student $0.99 $1.01 $1.05 $1 .09 $1.12 $1.16 Places - Religious Worship $21.96 $22.49 $23.27 $24.09 $24.93 $25.80 Wastewater Treatment
Schools per student $1.93 $1.98 $2.05 $2.12 $2.19 $2.27 Standard Industrial
Per 100 cu ft. of water $1.64 $1.68 $1.74 $1.80 $1.86 $1.93 Bakeries, Restaurants, Dry Cleaning, Motion Picture Theaters, Packing Sheds, and Dry Process Dairy Products Per 100 cu ft. of water $2.09 $2.14 $2.22 $2.29 $2.37 $2.46 Meat Products
Per 100 cu ft. of water $2.74 $2.81 $2.90 $3.01 $3.11 $3.22 Multi-Business Flat $20.60 $21.09 $21.83 $22.60 $23.39 $24.21 403
Proposed Solid Waste Increases
The rates for the solid waste service fees for residential customers are comprised of a fixed monthly charge based on the size of the refuse container used for such property. For commercial customers, the rates are comprised of a fixed monthly charge that is determined on the basis of the refuse container used to serve such property and the frequency of pick-ups. The rates are calculated to recover the costs of providing solid waste services and to proportionately allocate those costs on a parcel basis among the various customer classes. The proposed rates and their effective dates are set forth in the tables below:

Proposed Monthly Solid Waste Rates
July I, 2024 July I, 2025 July I, 2026 July I, 2027 July 1, 2028

2.4% CPI* not to CPI* not to CPI* not to CPI* not to
Percentage Increase exceed 3.5% exceed 3.5% exceed 3.5% exceed 3.5% Current Year 1 Year 2 Year3 Year4 Year 5 Rate
Residential All residential containers are oicked up one time per week 64- e.al cart $44.03 $45.09 $46.66 $48.30 $49.99 $51.74 96- gal cart $66.04 $67.62 $69.99 $72.44 $74.98 $77.60
Extra Green Cart $8.60 $8.81 $9.11 $9.43 $9.76 $10.1 I
Extra Recyclable Cart $8.60 $8.81 $9.11 $9.43 $9.76 $10.11 Extra Pick Up-64/96gal $20.09 $20.57 $21 .29 $22.04 $22.81 $23.61 Dumpster Delivery $32.19 $32.96 $34.12 $35.31 $36.55 $37.83 Commercial
Cart Service Monthly Rate One Pick Up 1er Week
64- gal cart $38.70 $39.63 $41.02 $42.45 $43.94 $45.47
96- gal cart $58.06 $59.45 $61.53 $63.69 $65.92 $68.22
Monthly Lock Fee $11.59 $11.87 $12.28 $12.71 $13.16 $13.62 Bin Service Monthly Rate- Service Freauency Varies
I cu yd. container
I pick-up/week $116.19 $118.98 $123 .14 $127.45 $131.91 $136.53 2 pick-ups/week $171.43 $175.54 $181.69 $188.04 $194.63 $201.44 3 pick-ups/week $232.35 $237.93 $246.25 $254.87 $263.79 $273.03 4 pick-ups/week $293.35 $300.39 $310.91 $321.79 $333.05 $344.71 5 pick-ups/week $351.43 $359.87 $372.46 $385.50 $398.99 $41 2.95 6 pick-ups/week $418.31 $428.35 $443.34 $458.86 $474.92 $491.54

1.5 cu yd. container
1 pick-up / week $133.58 $136.79 $141.57 $146.53 $151.66 $156.97 2 pick-ups/week $206.15 $211.10 $218.48 $226.13 $234.05 $242.24 3 pick-ups/week $278.82 $285.51 $295.50 $305.84 $316.55 $327.63 4 pick-ups/week $363.09 $371.80 $384.81 $398.28 $412.22 $426.65 5 pick-ups/week $464.73 $475.89 $492.54 $509.78 $527.62 $546.09 6 pick-ups/week $531.54 $544.29 $563.34 $583.06 $603.47 $624.59 3 cu yd. container
1 pick-up/ week $217.89 $223.12 $230.93 $239.02 $247.38 $256.04 2 pick-ups/week $394.96 $404.44 $418.60 $433.25 $448.41 $464.11 3 pick-ups/week $572.26 $585.99 $606.50 $627.73 $649.70 $672.44 4 pick-ups/week $717.46 $734.68 $760.40 $787.01 $814.55 $843.06 5 pick-ups/week $854.03 $874.53 $905.14 $936.82 $969.61 $1,003.54 6 pick-ups/week $978.86 $1,002.35 $1 037.43 $1,073.74 $1 ,111.32 $1 ,150.22 6 cu yd. container
1 pick-up / week $345.79 $354.09 $366.48 $379.31 $392.58 $406.32 2 pick-ups/week $642.18 $657.60 $680.61 $704.43 $729.09 $754.61 3 pick-ups/week $889.12 $910.46 $942.33 $975.31 $1 ,009.45 $1 ,044.78 4 pick-ups/week $1 ,136.18 $1,163.44 $1,204.16 $1,246.31 $1 ,289.93 $1 ,335.08 5 pick-ups/week $1,383.17 $1 ,416.37 $1 ,465.94 $1 ,517.25 $1 570.35 $1 ,625.31 6 pick-ups/week $1,630.12 $1,669.25 $1 ,727.67 $1 788.14 $1,850.72 $1 915.50 404
Prooosed Monthlv Solid Waste Rates Continued
July 1, 2024 July 1, 2025 July 1, 2026 July 1, 2027 July 1, 2028

2.4% CPI* not to CPI* not to CPI* not to CPI* not to
Percentage Increase exceed 3.5% exceed3 .5% exceed 3.5% exceed 3.5% Current
Rate Year 1 Year2 Year3 Year 4 Year5
8 cu yd. container
l pick-up/ week $464.38 $475.52 $492.16 $509.39 $527.22 $545.67 2 pick-ups/week $790.38 $809.35 $837.67 $866.99 $897.34 $928.74 3 pick-ups/week $1,086.77 $1 ,112.86 $1 151.81 $1 192.12 $1,233.84 $1,277.03 4 pick-ups/week $1,383.17 $1,416.37 $1 ,465.94 $1 517.25 $1,570.35 $1 ,625.31 5 pick-ups/week $1,654.88 $1,694.60 $1,753.91 $1,815.29 $1,878.83 $1,944.59 6 pick-ups/week $1 926.53 $1,972.77 $2,041.81 $2,113.28 $2 187.24 $2,263.80 Commercial Recyclable Materials/Green Waste Materials
96- gal cart $6.21 $6.36 $6.59 $6.82 $7.06 $7.30

1.5 cu yd. container $82.21 $84.18 $87.13 $90.18 $93.33 $96.60 3 cu yd. container $138.82 $142.15 $147.13 $152.28 $157.61 $163.12 6 cu yd. container $230.96 $236.50 $244.78 $253.35 $262.22 $271.39 Additional Pick Ups chare:es are per occurrence
32- gal bag $14.34 $14.69 $15.20 $15.73 $16.28 $16.85
64- or 96-gal cart $14.34 $14.69 $15.20 $15.73 $16.28 $16.85 1 cu yd. container $43.03 $44.06 $45.61 $47.20 $48.85 $50.56

1.5 cu vd. container $49.48 $50.67 $52.44 $54.28 $56.18 $58.14 3 cu yd. container $80.70 $82.63 $85.53 $88.52 $91.62 $94.82 6 cu yd. container $128.06 $131.13 $135.72 $140.47 $145.39 $150.48 8 cu yd. container $171.99 $176.11 $182.28 $188.66 $195.26 $202.10 Additional Recvclable Material Pick Ups chare:es are per occurrence 32- gal bag $7.18 $7.35 $7.61 $7.87 $8.15 $8.43
64- or 96-gal cart $7.18 $7.35 $7.61 $7.87 $8.15 $8.43
l cu yd. container $21 .52 $22.04 $22.81 $23.61 $24.43 $25.29

1.5 cu yd. container $24.73 $25.33 $26.21 $27.13 $28.08 $29.06 3 cu yd. container $40.35 $41.32 $42.77 $44.27 $45.82 $47.42 6 cu yd. container $64.04 $65.57 $67.87 $70.24 $72.70 $75.25 8 cu yd. container $86.00 $88.07 $91.15 $94.34 $97.64 $101.06 Ree:ularly Scheduled Collection Service (Per pull/return rate not includin2 initial deliver fee 1 6 cu yd. drop box $286.87 $293.75 $304.03 $314.68 $325.69 $337.09 14 cu yd. drop box $286.87 $293.75 $304.03 $314.68 $325.69 $337.09 20 cu yd. drop box $409.83 $419.67 $434.36 $449.56 $465.30 $481.58 30 cu yd. drop box $607.05 $621.62 $643.37 $665.89 $689.20 $713.32 40 cu yd. drop box $809.36 $828.78 $857.79 $887.81 $918.88 $951.05 On-Call Collection Service Per oull rate includes deliverv fee; does not include demurra2e fee) 6 cu yd. drop box $354.36 $362.87 $375.57 $388.71 $402.32 $416.40 14 cu yd. drop box $354.36 $362.87 $375.57 $388.71 $402.32 $416.40 20 cu yd. drop box $477.33 $488.79 $505.89 $523 .60 $541 .93 $560.89 30 cu yd. drop box $674.52 $690.71 $714.89 $739.91 $765.80 $792.61 40 cu yd. drop box $876.85 $897.90 $929.32 $961.85 $995.51 $1,030.36 Regularly Scheduled Compactor Service- Customer Owned Compactors (per pull/return rate not includinl! initial delivery fee) 14 cu yd. drop box $286.87 $293.75 $304.03 $314.68 $325.69 $337.09 16 cu yd. drop box $327.85 $335.72 $347.47 $359.63 $372.22 $385.24 20 cu yd. drop box $409.81 $419.65 $434.34 $449.54 $465.27 $481.56 24 cu yd. drop box $491.79 $503.59 $521.21 $539.46 $558.34 $577.88 25 cu yd. drop box $512.27 $524.56 $542.92 $561 .92 $581.59 $601.94 30 cu yd. drop box $583.43 $597.44 $618.35 $639.99 $662.39 $685.57 38 cu yd. drop box $778.65 $797.34 $825.25 $854.13 $884.03 $914.97 40 cu yd. drop box $819.62 $839.30 $868.67 $899.07 $930.54 $963.11 405
Prooosed Monthlv Solid Waste Rates Continued
July 1, 2024 July 1, 2025 July 1, 2026 Juh' 1, 2027 July 1, 2028 Percentage Increase 2.4% CPI* not to CPI* not to CPI* not to CPI* not to exceed 3.5% exceed 3.5% exceed 3.5% exceed 3.5%
Current
Rate Year I Year2 Year3 Year4 Year5
Regularly Scheduled Compactor Service - Contractor Owned Compactors (per pull/return rate not includine: initial delivery fee) 14 cu vd. drop box $286.87 $293.75 $304.03 $314.68 $325.69 $337.09 16 cu yd. drop box $327.85 $335.72 $347.47 $359.63 $372.22 $385.24 20 cu yd. drop box $409.81 $419.65 $434.34 $449.54 $465.27 $481.56 24 cu yd. drop box $491.79 $503.59 $521.21 $539.46 $558.34 $577.88 30 cu yd. drop box $614.73 $629.48 $651.51 $674.32 $697.92 $722.35 38 cu yd. drop box $778.65 $797.34 $825.25 $854.13 $884.03 $914.97 40 cu yd. drop box $819.62 $839.30 $868.67 $899.07 $930.54 $963.11 Recyclable Materials Contamination Charge upon 3rd Notice bv Contractor Container Removal $28.98 $29.67 $30.71 $31.79 $32.90 $34.05 406
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

LOS BANOS ESTABLISHING RA TES FOR WATER SERVICE
FEES
WHEREAS, the City of Los Banos (the "City") must generate revenues in an amount sufficient to cover the City's ongoing costs of providing water production, treatment, and delivery services ("water services"); and
WHEREAS, the City has determined that current increases to the schedule of rates for the City's Water service fees ("Water Fees") are necessary to generate revenues sufficient to cover the City's ongoing costs of providing water services and related costs and expenses; and WHEREAS, the revenues derived from the Water Fees will not exceed the funds required to provide the water services and shall be used exclusively for the provision of water services; and
WHEREAS, the amount of the Water Fees will not exceed the proportional cost of the services attributable to each parcel upon which they are proposed for imposition; and WHEREAS, the Water Fees will not be imposed on a parcel unless the water services are actually used by, or immediately available to, the owner of the parcel upon which the Water Fees are imposed or any tenant directly liable for the payment of Water Fees; and WHEREAS, the City, as the lead agency under the California Environmental Quality Act (CEQA), in consultation with the City's Legal Counsel, prepared a Preliminary Exemption Assessment for the adoption of this Resolution in order to evaluate its potential impacts. The City determined that this Resolution is exempt from CEQA review under Public Resources Code section 21080(b)(8) and State CEQA Guidelines section 15273 because the Water Fees are necessary and reasonable to fund the administration, operation, maintenance, and improvements of the Water system and will not result in the expansion of the Water system; and WHEREAS, California Constitution article XIII D, section 6 ("Article XIII D") requires that prior to imposing any increase to the Water Fees, the City shall provide written notice (the "Notice") by mail of the proposed increases to the rates for the Water Fees to the record owner of each parcel upon which the rate increases to the Water Fees are proposed for imposition and any tenant directly liable for the payment of such fees, the amount of the rates for the Water Fees proposed to be imposed on each parcel, the basis upon which the rates for the Water Fees were calculated, the reason for the rate increases to the Water Fees, and the date time and location of a public hearing (the "Hearing") on the proposed rate increases to the Water Fees; and WHEREAS, pursuant to Article XIII D such Notice is required to be provided to the affected property owners and any tenants directly liable for the payment of such fees not less than forty-five days prior to the Hearing on the proposed rates; and 407
WHEREAS, the City did provide such Notice to the affected property owners and tenants of the proposed rate increases to the Water Fees in compliance with Article XIII D; and WHEREAS, the Hearing was held on this day, June 19, 2024; and WHEREAS, at the Hearing the City Council of the City heard and considered all oral testimony, written materials, and written protests concerning the establishment and imposition of the proposed rate increases to the Water Fees, and at the close of the Hearing the City did not receive written protests against the establishment and imposition of the proposed rate increases to the Water Fees from a majority of the affected property owners and tenants directly liable for the payment of the Water Fees; and
WHEREAS, the City Council of the City now desires to establish and impose the proposed rate increases to the Water Fees; and
WHEREAS, this Resolution shall supersede all other previous resolutions and ordinances that may conflict with, or be contrary to, this Resolution respecting the rates for Water Fees described more particularly herein;
NOW THEREFORE, BE IT RESOLVED, by the City Council of the City of Los Banos as follows:

1. The City Council hereby finds and determines that the above Recitals are true and correct and are incorporated herein.

2. As the decision making body for the City, the City Council has reviewed and considered the information contained in the Preliminary Exemption Assessment and administrative record. The City Council finds that the Preliminary Exemption Assessment contains a complete and accurate reporting of the environmental impacts associated with the adoption of this Resolution and reflects the independent judgment of the City Council.

3. The rates for the City's Water Fees are comprised of two components - a flat monthly service charge and a water usage charge. The water usage charge is imposed on a per unit basis for monthly water usage in excess of 1,500 cubic feet of metered water.

One unit equals 100 cubic feet of metered water. The City Council hereby adopts the schedule of rates for the Water Fees set forth in Exhibit A, attached hereto and by this reference incorporated herein. The rates currently in effect for Water Fees shall remain in effect for service provided through June 30, 2024. Beginning July 1, 2024, the rates set forth in Exhibit A shall be in effect for water services provided on or after the respective dates set forth therein.

4. Prior to implementing any of the authorized rate increases on July 1, 2025, 2026, 2027, or 2028 as set forth in Exhibit A, the City shall provide written notice of any such increase not less than 30 days prior to the effective date of the increase. Such notice may be included in the regular billing statement for the payment of Water Fees or any other mailing by the City to the address to which the City customarily mails the billing 408
statement.

5. The City Council hereby finds that the administration, operation, maintenance, and improvements of the Water system, which are to be funded by the Water Fees, are necessary to maintain water services within the City's existing service area. The City Council further finds that the administration, operation, maintenance, and improvements of the Water system, to be funded by the Water Fees set forth herein, will not expand the Water system. The City Council further finds that such Water Fees are necessary and reasonable to fund the administration, operation, maintenance, and improvements of the Water system. Based on these findings, the City Council hereby determines that this Resolution is exempt from the requirements of CEQA pursuant to California Public Resources Code section 21080(b)(8) and State CEQA Guidelines section 15273(a).

6. The documents and materials that constitute the record of proceedings on which these findings have been based are located at 520 J Street, Los Banos, California 93635. The custodian for these records is the City Clerk.

7. The City Council hereby authorizes and directs the City Manager to implement and take all actions necessary to effectuate the rates for the Water Fees set forth herein and to file a Notice of Exemption with the County Clerk for the County of Merced within five (5) working days of the date of the adoption of this Resolution.

8. If any section, subsection, subdivision, sentence, clause, or phrase in this Resolution or any part thereof is for any reason held to be unconstitutional or invalid, ineffective by any court of competent jurisdiction, such decision shall not affect the validity or effectiveness of the remaining portions of this Resolution or any part thereof. The City Council hereby declares that it would have adopted each section irrespective of the fact that any one or more subsections, subdivisions, sentences, clauses, or phrases be declared unconstitutional, invalid, or ineffective.

9. This Resolution shall supersede any and all provisions of any previous resolution and/or ordinance approved by the City Council that may conflict with, or be contrary to, this Resolution.

10. This Resolution shall become effective immediately upon its adoption.

11. The foregoing resolution was introduced at a regular meeting of the City Council of the City of Los Banos held on the 19th day of, June 2024 by Council Member ___ who moved its adoption, which motion was duly seconded by Council Member ___ and the Resolution adopted by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
409
Paul Llanez, Mayor
ATTEST:

Lucille L. Mallonee, City Clerk
410

EXHIBIT A

SCHEDULE OF WATER SERVICE FEES
The following schedule of rates and compensation is hereby set and established as the rates and compensation to be charged and collected.

1. RATES TO BE EFFECTIVE:

Every person whose premise in the City is served by a connection with the public water system of the City shall pay a water service fee as follows:
*Proposed Monthly Water Rates - based on 3.5% maximum increase Actual rate increase ma v be less based uoon the CPI for FY 2024/25 - 2028/29 Current Effective *July 1, *July 1, *July 1, *July 1, Customer Classification through 06/30/2024 July 1, 2024 2025 2026 2027 2028
Residential
Meters< 1" $24.55 $25.14 $26.02 $26.93 $27.88 $28.85
Meters 1 " - 1 ½" $29.90 $30.62 $31.69 $32.80 $33.95 $35.14 Meters 1 ½"- 2" $34.46 $35.28 $36.52 $37.80 $39.12 $40.49 Meters 2" - 3" $39.35 $40.29 $41.70 $43.16 $44.67 $46.24 Meters 3"- 4" $49.16 $50.34 $52.10 $53.93 $55.82 $57.77 Flat+ $8.73 Flat+ $8.94 Flat+ $9.25 Flat+ $9.58 Flat+ $9.91 Flat+ Multiple Family > 1 unit
per unit per unit per unit per unit per unit $10.26 per unit
Overage per 100 cubic feet $1.90 $1.95 $2.01 $2.08 $2.16 $2.23 Commercial
Meters< I" $24.55 $25.14 $26.02 $26.93 $27.88 $28.85
Meters 1"- l½" $29.90 $30.62 $31.69 $32.80 $33.95 $35.14 Meters 1 ½" - 2" $34.46 $35.28 $36.52 $37.80 $39.12 $40.49 Meters 2" - 3" $39.35 $40.29 $41.70 $43.16 $44.67 $46.24 Meters 3"- 4" $49.16 $50.34 $52.10 $53.93 $55.82 $57.77 Meters> 4" Determined by Public Works Department
Multiple Commercial > 1 Flat + $8.73 Flat+ $8.94 Flat+ $9.25 Flat+ $9.58 Flat+ $9.91 Flat+ $10.26 per unit per unit per unit per unit per unit per unit unit Current Effective *July 1, *July 1, *July 1, *July 1, though 06/30/2024 July 1, 2024 2025 2026 2027 2028
Overage per 100 cubic feet $1.90 $1.95 $2.01 $2.08 $2.16 $2.23 Allowance amount for all users= 1,500 cubic feet per month.

Any usage over 1 500 cubic feet will be charged an overa_ge rate per each 100 cubic feet All amounts specified in the sections below are subject to the annual increase, whereas the actual rate for Fiscal Year 2024/25 - 2028/29 will be determined by the CPI increase not to exceed 3.5%.

2. WATER SERVICES: TEMPORARY CONNECTIONS
Contractors or any persons desiring to use water in construction work where non-metered connections must be made shall in each case obtain a written permit from the Public Works Director. The Public Works Director will then designate the connection and the cost of the meter installation. All water shall then be charged at the prevailing rate. The current minimum charge is: $33.74 for the hydrant rental rate and $60.80 minimum water charge. The minimum water charge allots for 3,200 cubic feet of water usage per month. Any usage over 3,200 cubic feet is charged an overage rate per each 100 cubic feet at $1.90. 411

3. The monthly charges set forth in this subsection shall be made irrespective of the amount of water consumed through the metered connection during the monthly billing period.

4. For water meters over four (4") inches, the minimum monthly charge shall be as determined by the office of Public Works and the City Engineer.

5. For all water supplied through an un-metered service connection by the Utility Department, a flat monthly charge shall be made therefore, to be determined based upon the estimated quantity of water supplied at the rates set forth in as determined by the character of the use, but in no case shall such charge be less than the current flat rate for a meter < l ".

6. The City hereby reserves the right and power to contact separately with any person, firm, or corporation for the sale and delivery of water within or outside the City at wholesale, at times, places, and prices fixed and agreed upon by resolution of the Council. Water rates and compensation to be paid shall be based in part upon the use of the City water system.

7. METERS: MULTIPLE CONSUMERS RATES
a. Separate Services. A single-family residence or business lot occupied by one private business concern with a regulation meter, as determined by the Public Works Director, shall constitute a service connection. No person shall run any water from any meter or service connection to any other consumer, whether on the same lot or property or not, for which the rate has been paid or the rules and regulations set forth in this chapter have not been complied with. b. Changes to multiple services. No change in the use of the water shall be made after the filing of the application until a written notice has been given to the Utility Department and written permission to make such change has been granted by the Public Works Director. c. Multiple Family Services. If one meter connection shall serve more than one family living separate and apart from another family, whether in suites or otherwise, and it is impossible to both the consumer and the Utility Department to install separate services, that meter shall be given the allowance consumption of 1,500 cubic feet for all units. If one utility customer for all units, the customer shall pay the minimum base rate, the multi unit rate per unit plus for excess water used over the allowance at the scheduled rate. If more than one utility customer for all units, the first unit shall pay the minimum base rate, plus the excess water used of over the allowance at the scheduled rate. The other units shall pay the multi unit rate per unit in excess of one. The allowance for more than one utility customer for a multiple family service will be determined by the Public Works Director.
d. Multiple Commercial Services. If one meter connection shall serve more than one store, shop, or any other concern doing business separate and apart from one another, whether in the same building or not, and it is impractical to both the consumer and the Utility Department to install separate services or meters, that meter shall be given the allowance consumption of 1,500 cubic feet for all units. The owner shall pay the charges of the minimum base rate, the multi unit rate per unit plus for excess water used over the allowance of the scheduled rate. e. Liability. With the exception of residential accounts, but not excluding master-metered apartments where one-meter connection serves one (1) or more separate and distinct consumers, the property owner or the applicant for services, or both at the option of the City shall be held responsible to the City for all water used.
412
f. Utilitv Department Option for Separate Services. The Utility Department may, at its option, install separate services and collect the regular rate from each consumer, in which case the owner or consumer shall, at his expense, install a water pipeline from the property to the meter and pay the regular service connection fee.

8. WATER SERVICES: APPLICATIONS: CONNECTIONS CHARGES
When the applicant applies for water services, an estimate of the cost of installing the water service, including labor, meters, valve boxes, valves, service lines, and service saddles or removing seals from sealed services, shall be made by the Public Works Director. An amount equal to such estimate shall be deposited with the Utility Department. The final payment for installing the water service shall be a sum equal to the cost of the materials required, plus the cost of the labor for installation. If the estimated deposit does not cover the cost, the difference shall be paid prior to the commencement of the service. If the estimated deposit exceeds the actual cost, the credit shall be applied against subsequent billings for the use of the City water system and water furnished.

9. METER: TEST
Any Consumer may require, upon depositing $25.00 at the office of the Utility Department, that the meter through which water is being furnished to such consumer be tested by the Utility Department for the purpose of ascertaining whether or not the meter is registering correctly. If, upon such test, the meter shall be found to register over two (2%) percent more water than actually passes through, another meter shall be substituted therefore, and the deposit of$25.00 shall be returned to the consumer making the application, and the water bills for the current period shall be adjusted in an equitable manner. If, upon such test, the meter shall be found to register under two (2%) percent more water than actually passes though, the $25.00 deposit shall be retained by the Utility Department and deposited in the water fund. 413

THIS PAGE IS INTENTIONALLY LEFT BLANK
414
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

LOS BANOS ESTABLISHING RA TES FOR WAS TEW ATER

SERVICE FEES
WHEREAS, the City of Los Banos (the "City'') must generate revenues in an amount sufficient to cover the City's ongoing costs of providing wastewater collection, treatment, and disposal services ("wastewater services"); and
WHEREAS, the City has determined that current increases to the schedule of rates for the City's wastewater service fees ("Wastewater Fees") are necessary to generate revenues sufficient to cover the City's ongoing costs of providing wastewater services and related costs and expenses; and
WHEREAS, the revenues derived from the Wastewater Fees will not exceed the funds required to provide the wastewater services and shall be used exclusively for the provision of wastewater services; and
WHEREAS, the amount of the Wastewater Fees will not exceed the proportional cost of the services attributable to each parcel upon which they are proposed for imposition; and WHEREAS, the Wastewater Fees will not be imposed on a parcel unless the wastewater services are actually used by, or immediately available to, the owner of the parcel; and WHEREAS, the City, as the lead agency under the California Environmental Quality Act (CEQA), in consultation with the City's Legal Counsel, prepared a Preliminary Exemption Assessment for the adoption of this Resolution in order to evaluate its potential impacts. The City determined that this Resolution is exempt from CEQA review under Public Resources Code section 21080(b)(8) and State CEQA Guidelines section 15273 because the Wastewater Fees are necessary and reasonable to fund the administration, operation, maintenance, and improvements of the wastewater system and will not result in the expansion of the wastewater system; and WHEREAS, California Constitution article XIII D, section 6 ("Article XIII D") requires that prior to imposing any increase to the Wastewater Fees, the City shall provide written notice (the "Notice") by mail of the proposed increases to the rates for the Wastewater Fees to the record owner of each parcel upon which the rate increases to the Wastewater Fees are proposed for imposition and any tenant directly liable for the payment of such fees, the amount of the rates for the Wastewater Fees proposed to be imposed on each parcel, the basis upon which the rates for the Wastewater Fees were calculated, the reason for the rate increases to the Wastewater Fees, and the date time and location of a public hearing (the "Hearing") on the proposed rate increases to the Wastewater Fees; and
WHEREAS, pursuant to Article XIII D such Notice is required to be provided to the affected property owners and any tenants directly liable for the payment of such fees not less 415
than forty-five days prior to the Hearing on the proposed rates; and WHEREAS, the City did provide such Notice to the affected property owners and tenants of the proposed rate increases to the Wastewater Fees in compliance with Article XIII D; and WHEREAS, the Hearing was held on this day, June 19, 2024; and WHEREAS, at the Hearing the City Council of the City heard and considered all oral testimony, written materials, and written protests concerning the establishment and imposition of the proposed rate increases to the Wastewater Fees, and at the close of the Hearing the City did not receive written protests against the establishment and imposition of the proposed rate increases to the Wastewater Fees from a majority of the affected property owners and tenants directly liable for the payment of the Wastewater Fees; and WHEREAS, the City Council of the City now desires to establish and nnpose the proposed rate increases to the Wastewater Fees; and
WHEREAS, this Resolution shall supersede all other previous resolutions and ordinances that may conflict with, or be contrary to, this Resolution respecting the rates for Wastewater Fees described more particularly herein;
NOW THEREFORE, BE IT RESOLVED, by the City Council of the City of Los Banos as follows:

1. The City Council hereby finds and determines that the above Recitals are true and correct and are incorporated herein.

3. The rates for the City's Wastewater Fees for residential customers are comprised of a fixed monthly service charge. For non-residential customers, the rates are comprised of a fixed monthly service charge and a flow-based charge. The City Council hereby adopts the schedule of rates set forth in Exhibit A, attached hereto and by this reference incorporated herein. The rates currently in effect for Wastewater Fees shall remain in effect for services provided through June 30, 2024. Beginning July 1, 2024, the rates set forth in Exhibit A shall be in effect for services provided on or after the respective dates set forth therein.

4. Prior to implementing any of the authorized rate increases on July 1, 2025, 2026, 2027, or 2028 as set forth in Exhibit A, the City shall provide written notice of any such increase not less than 30 days prior to the effective date of the increase. Such notice may be included in the regular billing statement for the payment of Wastewater Fees or any other 416
mailing by the City to the address to which the City customarily mails the billing statement.

5. The City Council hereby finds that the administration, operation, maintenance, and improvements of the wastewater system, which are to be funded by the Wastewater Fees, are necessary to maintain wastewater services within the City's existing service area.

The City Council further finds that the administration, operation, maintenance, and improvements of the wastewater system, to be funded by the Wastewater Fees set forth herein, will not expand the wastewater system. The City Council further finds that such Wastewater Fees are necessary and reasonable to fund the administration, operation, maintenance, and improvements of the wastewater system. Based on these findings, the City Council hereby determines that this Resolution is exempt from the requirements of CEQA pursuant to California Public Resources Code section 21080(b)(8) and State CEQA Guidelines section 15273(a).

7. The City Council hereby authorizes and directs the City Manager to implement and take all actions necessary to effectuate the rates for the Wastewater Fees set forth herein and to file a Notice of Exemption with the County Clerk for the County of Merced within five (5) working days of the date of the adoption of this Resolution.

9. This Resolution shall supersede any and all provisions of any previous resolution and/or ordinance approved by the City Council that may conflict with, or be contrary to, this Resolution.

10. This Resolution shall become effective immediately upon its adoption.

NOES:

ABSENT:

ABSTAIN:

Paul Llanez, Mayor
ATTEST:

Lucille L. Mallonee, City Clerk
418

EXHIBIT A

SCHEDULE OF WASTEWATER SERVICE FEES
The following schedule of rates and compensation is hereby set and established as the rates and compensation to be charged and collected.

1. RATES TO BE EFFECTIVE
Every person whose premise in the City is served by a connection with the public sewage system of the City whereby the public sewage is treated by the City, either through the sewage treatment plant or otherwise, shall pay a wastewater service fees as follows:
*Proposed Monthly Wastewater Rates - based on 3.5% maximum increase Actual increase may be less based upon the CPI for FY 2024/25 - 2028/29 Current
Customer Classification through Effective *July 1, *July 1, *July 1, *July 1, June 30, July 1, 2024 2025 2026 2027 2028
2024
Residential
Wastewater Collection
Flat $21.96 $22.49 $23.27 $24.09 $24.93 $25.80
Multiple Dwelling/Trailer $21.96 + $22.49 + $23.27 + $24.09 + $24.93 + $25.80 + Parks with common sewer $21.96/unit $22.49/unit $23.27 /unit $24.09/unit $24.93/unit $25.80/unit Wastewater Treatment
Flat $9.55 $9.78 $10.12 $10.48 $10.84 $11.22
Multiple Dwelling/Trailer $9.55 + $9.78 + $10.12+ $10.48 + $10.84 + $11.22 + Parks with common sewer $9.55/unit $9.78/unit $10.12/unit $10.48/unit $10.84/unit $11.22/unit Commercial
Wastewater Collection
Flat $43.91 $44.96 $46.54 $48.17 $49.85 $51.60
Hotel & Motels $43.91 $44.96 $46.54 $48. 17 $49.85 $51.60 Per room with kitchen $10.83 $11.09 $11.48 $11.88 $12.30 $12.73 Per room w/o kitchen $5.47 $5.60 $5.80 $6.00 $6.21 $6.43 Schools per student $0.99 $1.01 $1 .05 $1.09 $1.12 $1.16 Places - Religious $21.96 $22.49 $23.27 $24.09 $24.93 $25.80 Worship Wastewater Treatment
Schools per student $1.93 $1.98 $2.05 $2.12 $2.19 $2.27 Standard Industrial
Per 100 cu ft. of water $1.64 $1.68 $1.74 $1.80 $1.86 $1.93 Bakeries, Restaurants, Dry
Cleaning, Motion Picture
Theaters, Packing Sheds,
and Dry Process Dairy
Products
Per 100 cu ft. of water $2.09 $2.14 $2.22 $2.29 $2.37 $2.46 Meat Products
Per 100 cu ft. of water $2.74 $2.81 $2.90 $3.01 $3.11 $3.22 Multi-Business Flat $20.60 $21.09 $21.83 $22.60 $23.39 $24.21 419
All amounts specified in the sections below are subject to the annual increase, whereas the actual rate for Fiscal Year 2024/25 - 2028/29 will be determined by the CPI increase not to exceed 3 .5%.

2. WASTEWATER COLLECTION SYSTEM CHARGES
a. For industrial establishments including, but not limited to, packing sheds, garages, manufacturing plants, and chemical plants, that do not discharge large volumes of effluent and/or that do not contain unusual concentrations of materials that could affect the capacity or integrity of the sewer system as determined by the City Engineer, $43.91 per month. b. Where more than one business is provided water service through a single water meter, whether in the same building or not, each business shall pay a $43.91 monthly wastewater collection charge. c. For hotels and motels, $43.91 flat monthly wastewater collection charge plus:
a. $10.83 per room with kitchen facility
b. $5.47 per room without kitchen facility
d. For schools, $0.99 per month per student based on an annual Enrollment Report. e. For places of religious worship, $21.96 per month.
f. For hospitals, $146.13 per month.
g. For California Dairies or current tenant, $1,862.76 per month. h. For the Los Banos Abattoir or current tenant, $1 ,626.40 per month.

3. WASTEWATER TREATMENT CHARGES
a. For schools, $1.93 per month per student based on an annual Enrollment Report. b. Discharge from Non-Residential premises. unit charge. The following listed classifications shall pay a minimum waste treatment charge per one hundred (100 cu. ft.) cubic feet of water delivered.

Where existing water services are not metered or are served by water sources other than metered City Water service, the City Engineer shall estimate the water use by the best available method and recommend a set monthly rate to the City based on the estimated water use and the minimum water treatment charge for the business classification. Where more than one business is provided water service through a single water meter, whether in the same building or not, each business shall pay a $20.60 monthly wastewater treatment charge for up to and including an average 1,000 cubic feet of water delivered per business; where the metered account shall be billed the excess at the appropriate wastewater treatment unit charge.
c. Business Classification Code.

Classification Minimum Waste Treatment Charge
Standard Industrial Classification Manual Amount per 100 Cubic Feet Industry #5462 Retail Bakeries $2.09
Industry #5 812 Restaurants $2.09
Industry #7216 Dry Cleaning Plants $2.09
Industry #7832 Motion Picture Theaters $2.09
All Other Except Critical Industries $1.64
420
Classification Minimum Waste Treatment Charge
Critical Industries <Division D) Amount per 100 Cubic Feet Group #072 Crop Preparation Services (Packing $2.09
Shed)
Group #201 Meat Products $2.74
Group #202 Dairy Products (Dry Process Only) $2.09
Group #243 Mill Work (Door Factor) $2.09
Group #379 Miscellaneous Transportation $1.64
Equipment
Unit Charges: Unit Charges will apply to all Division D Industries where testing indicates that the total of the unit charges exceeds the minimum charge.

Group #202 Dairy Products (Except Dry Process)
Industry #201 Meat Packing Plants
Unit Charges for the above classification shall be based on the following unit rate formula:

Charg-e Item Quantity Unit of Measure Charj!e Rate
Flow Monthly Reading Million Gallons X 706.32
BOD0l Monthly Reading 1,000 lbs. X 13.52
ss<1) Monthly Reading 1,000 lbs. X 33.40
Penalties Each X 360.09
(!)Formula: Flow X 8.34 lbs/gallon X mg/1 concentration = quantity treated 421

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RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

LOS BANOS ESTABLISHING RATES FOR SOLID WASTE

SERVICE FEES
WHEREAS, the City of Los Banos (the "City") must generate revenues in an amount sufficient to cover the City's ongoing costs of providing solid waste collection and disposal services ("solid waste services"); and
WHEREAS, the City has determined that current increases to the schedule of rates for the City's solid waste service fees ("Solid Waste Fees") are necessary to generate revenues sufficient to cover the City's ongoing costs of providing solid waste services and related costs and expenses; and
WHEREAS, the revenues derived from the Solid Waste Fees will not exceed the funds required to provide the solid waste services and shall be used exclusively for the provision of solid waste services; and
WHEREAS, the amount of the Solid Waste Fees will not exceed the proportional cost of the services attributable to each parcel upon which they are proposed for imposition; and WHEREAS, the Solid Waste Fees will not be imposed on a parcel unless the solid waste services are actually used by, or immediately available to, the owner of the parcel; and WHEREAS, the City, as the lead agency under the California Environmental Quality Act (CEQA), in consultation with the City's Legal Counsel, prepared a Preliminary Exemption Assessment for the adoption of this Resolution in order to evaluate its potential impacts. The City determined that this Resolution is exempt from CEQA review under Public Resources Code section 21080(b)(8) and State CEQA Guidelines section 15273 because the Solid Waste Fees are necessary and reasonable to fund the administration, operation, maintenance, and improvements of the Solid Waste system and will not result in the expansion of the Solid Waste system; and WHEREAS, California Constitution article XIII D, section 6 ("Article XIII D") requires that prior to imposing any increase to the Solid Waste Fees, the City shall provide written notice (the "Notice") by mail of the proposed increases to the rates for the Solid Waste Fees to the record owner of each parcel upon which the rate increases to the Solid Waste Fees are proposed for imposition and any tenant directly liable for the payment of such fees, the amount of the rates for the Solid Waste Fees proposed to be imposed on each parcel, the basis upon which the rates for the Solid Waste Fees were calculated, the reason for the rate increases to the Solid Waste Fees, and the date time and location of a public hearing (the "Hearing") on the proposed rate increases to the Solid Waste Fees; and
WHEREAS, pursuant to Article XIII D such Notice is required to be provided to the affected property owners and any tenants directly liable for the payment of such fees not less 423
than forty-five days prior to the Hearing on the proposed rates; and WHEREAS, the City did provide such Notice to the affected property owners and tenants of the proposed rate increases to the Solid Waste Fees in compliance with Article XIII D; and WHEREAS, the Hearing was held on this day, June 19, 2024; and WHEREAS, at the Hearing the City Council of the City heard and considered all oral testimony, written materials, and written protests concerning the establishment and imposition of the proposed rate increases to the Solid Waste Fees, and at the close of the Hearing the City did not receive written protests against the establishment and imposition of the proposed rate increases to the Solid Waste Fees from a majority of the affected property owners and tenants directly liable for the payment of the Solid Waste Fees; and WHEREAS, the City Council of the City now desires to establish and impose the proposed rate increases to the Solid Waste Fees; and
WHEREAS, this Resolution shall supersede all other previous resolutions and ordinances that may conflict with, or be contrary to, this Resolution respecting the rates for Solid Waste Fees described more particularly herein;
NOW THEREFORE, BE IT RESOLVED, by the City Council of the City of Los Banos as follows:

1. The City Council hereby finds and determines that the above Recitals are true and correct and are incorporated herein.

3. The rates for Solid Waste Fees imposed on residential customers are comprised of a fixed monthly charge based on the size of the refuse container used for such property.

The rates for Solid Waste Fees imposed on commercial customers are comprised of a fixed monthly charge that is determined on the basis of the refuse container used to serve such property and the frequency of pick ups. The City Council hereby adopts the schedule of rates set forth in Exhibit A, attached hereto and by this reference incorporated herein. The rates currently in effect for Solid Waste Fees shall remain in effect for services provided through June 30, 2024. Beginning July 1, 2024, the rates set forth in Exhibit A shall be in effect for solid waste services provided on or after the respective dates set forth therein.

4. Prior to implementing any of the authorized rate increases on July 1, 2025, 2026, 2027, or 2028 as set forth in Exhibit A, the City shall provide written notice of any such increase 424
not less than 30 days prior to the effective date of the increase. Such notice may be included in the regular billing statement for the payment of Solid Waste Fees or any other mailing by the City to the address to which the City customarily mails the billing statement.

5. The City Council hereby finds that the administration, operation, maintenance, and improvements of the Solid Waste system, which are to be funded by the Solid Waste Fees, are necessary to maintain solid waste services within the City's existing service area. The City Council further finds that the administration, operation, maintenance, and improvements of the Solid Waste system, to be funded by the Solid Waste Fees set forth herein, will not expand the Solid Waste system. The City Council further finds that such Solid Waste Fees are necessary and reasonable to fund the administration, operation, maintenance, and improvements of the Solid Waste system. Based on these findings, the City Council hereby determines that this Resolution is exempt from the requirements of CEQA pursuant to California Public Resources Code section 21080(b)(8) and State CEQA Guidelines section 15273(a).

7. The City Council hereby authorizes and directs the City Manager to implement and take all actions necessary to effectuate the rates for the Solid Waste Fees set forth herein and to file a Notice of Exemption with the County Clerk for the County of Merced within five (5) working days of the date of the adoption of this Resolution.

9. This Resolution shall supersede any and all provisions of any previous resolution and/or ordinance approved by the City Council that may conflict with, or be contrary to, this Resolution.

10. This Resolution shall become effective immediately upon its adoption.

NOES:

ABSENT:

ABSTAIN:

Paul Llanez, Mayor
ATTEST:

Lucille L. Mallonee, City Clerk
426

EXHIBIT A

SCHEDULE OF SOLID WASTE SERVICE FEES
The following schedule of rates and compensation 1s hereby set and established as the rates and compensation to be charged and collected.

1. RATES TO BE EFFECTNE
Every person whose premise in the City that receives solid waste disposal services shall pay a solid waste service fee as follows:
*Proposed Monthly Water Rates - based on 3.5% maximum increase Actual rate increase may be less based upon the CPI for FY 2024/25 - 2028/29 Current Effective Customer Classification through July 1, 2024 *July 1, 2025 *July 1, 2026 *July 1, 2027 *July 1, 2028 June 30, 2024
Residential All residential containers are picked up one time per week 64- gal cart $43.90 $44.95 $46.53 $48.16 $49.84 $51.59
96- gal cart $45.50 $46.59 $48.22 $49.91 $51.66 $53.47
Extra Green Cart $8.58 $8.79 $9.09 $9.41 $9.74 $10.08
Extra Recyclable Cart $8.58 $8.79 $9.09 $9.41 $9.74 $10.08 Extra Pick Up-64/96gal $20.03 $20.51 $21.23 $21.97 $22.74 $23.54 Dumpster Delivery $32.09 $32.86 $34.01 $35.20 $36.43 $37.71 In addition, the following fees are subject to the annual CPI increase, not to exceed 3.5%, and will be adjusted accordingly: Overload Fee of $58.92 and Contamination Fee of $15.93. 427

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TO:

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DATE:

LOsBanos
I th d o 1luo, nic,
Agenda Staff Report
Mayor Llanez and City Council Members
Stacy Souza Elms, Community and Economic Development Director~ June 19, 2024
TYPE OF REPORT: Agenda Item
SUBJECT: A Resolution of Detachment Referral to the Merced County Local Agency Formation Commission (LAFCO) for the Detachment of Properties from the Central California Irrigation District (CCID)
Recommendation:

That the City Council would adopt a Resolution of Detachment Referral to the Merced County LAFCO for the detachment of parcels within the City Limits of Los Banos from CCID.

Background:

Since the City of Los Banos was officially incorporated in 1907, the City has gradually grown in size through annexations. When lands are annexed into a City, the new parcels are generally detached from special districts (i.e. irrigation districts); however, this detachment process was sometimes missed historically.

Discussion:

The City of Los Banos has committed to work with CCID staff to correct the historical properties remaining in CCID's boundaries. In working with CCID staff, City staff has learned there are seventy-two (72) parcels in City Limits that remain within CCID's boundaries. While it is unclear why said parcels were not detached from CCID at the time they were annexed, both City and CCID staff believe it is an appropriate time to address 1 429
this oversight. According to District records, none of said parcels receive water from CCID. Therefore, the proposal would not have a negative impact upon the property owners. This proposal would only apply to those parcels within City Limits that have not been previously detached from the District.

Fiscal Impact:

There is a $2,700 application fee for Merced County LAFCO to process the application.

Reviewed by:

J Vanessa Portillo, Finance Director
Attachments:

1. Resolution

2. Detachment Map
2 430
RESOLUTION NO. --

A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF LOS BANOS OF REFERRAL TO THE

MERCED COUNTY LOCAL AGENCY

FORMATION COMMISSION (LAFCO) FOR THE

DETACHMENT OF PROPERTIES FROM THE

CENTRAL CALIFORNIA IRRIGATION DISTRICT
WHEREAS, on May 8, 1907, Los Banos was officially incorporated as a municipal corporation in Merced County; and
WHEREAS, gradually the City has chosen to annex additional lands to the City limits through a formal annexation process; and
WHEREAS, some of said parcels annexed to the City were located within the boundaries of the Central California Irrigation District ("District"); and WHEREAS, some of these parcels were not detached from the District during the annexation process; and
WHEREAS, the majority of these parcels have been developed with urban uses; and
WHEREAS, none of these parcels utilize agricultural water supplied by the District; and
WHEREAS, the City desires to assist the District in detaching parcels that remain within the District after being annexed into the City; and WHEREAS, the proposed detachment will clearly differentiate between parcels that remain within the District after being annexed into the City and those that are located within District boundaries.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Los Banos does hereby:

1. The detachment is consistent with the Los Banos General Plan 2042; and

2. The detachment is consistent with the Central California Irrigation District Policy; and

3. The detachment is a join endeavor between the City of Los Banos and the District to distinguish properties that lie within the District from those that have been annexed to the City; and
431

4. Detachment of the parcels from the District will not deprive the properties from the ability to maintain a viable commercial agricultural use of the property; and

5. The City desires to detach all parcels within City Limits from the Central California Irrigation District.

The foregoing Resolution was introduced at a regular meeting of the City Council of the City of Los Banos held on the 19th day of June 2024, by Council Member __ _ who moved its adoption, which motion was duly seconded by Council Member __ _ and the Resolution adopted by the following vote:

AYES:

NOES:

ABSENT:

APPROVED:

Paul Llanez, Mayor
ATTEST:

Lucille L. Mallonee, City Clerk
2 432
'
I
\ / · /
..
-·
433

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TO:

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LOsBanos
I th 1i 1·oa if lifo, 1
Agenda Staff Report
Mayor Llanez and City Council Members
Stacy Souza Elms, Community and Economic Development Director ~ June 19, 2024
TYPE OF REPORT: Agenda Item
SUBJECT: Transportation Impact Analysis Guidelines Adoption Recommendation:

That the City Council adopt a Resolution approving the City of Los Banos Transportation Impact Analysis Guidelines dated April 29, 2024.

Background:

CEQA analysis typically requires the use of thresholds of significance to determine if a project's effect in a given environmental topic area rises to the level of requiring mitigation.

As the City continues to implement vehicle-miles traveled (VMT) for CEQA Transportation section analysis as required under Senate Bill 743 (2013), the City is currently using project-by-project thresholds of significance using VMT as the metric. CEQA Guidelines §15064.7 govern several principles behind thresholds of significance, including the following provisions:
• § 15064. 7(b ): Each public agency is encouraged to develop and publish thresholds of significance that the agency uses in the determination of the significance of environmental effects. Thresholds of significance to be adopted for general use as part of the lead agency's environmental review process must be adopted by ordinance, resolution, rule, or regulation, and developed through a public review process and be supported by substantial evidence. Lead agencies may also use thresholds on a case-by-case basis as provided in Section 15064(b )(2). 1 435
• §15064.?(c): When adopting or using thresholds of significance, a lead agency may consider thresholds of significance previously adopted or recommended by other public agencies or recommended by experts, provided the decision of the lead agency to adopt such thresholds is supported by substantial evidence.

The Governor's Office of Planning and Research (QPR) released a Technical Advisory on Transportation Impacts in CEQA, which outlines substantial evidence and potential thresholds of significance for VMT analysis. Screening opportunities - which provide an avenue for projects to be presumed to have a less-than-significant CEQA Transportation section VMT impact - are also provided. It is noted that screening out of a CEQA Transportation VMT impact analysis does not relieve the need to study VMT as part of the CEQA Air Quality, Greenhouse Gas, and/or Energy sections.

Discussion:

The proposed Transportation Impact Analysis Guidelines include VMT analysis methodologies, metrics and thresholds of significance for future traffic studies to follow.

Generally, these follow the evidence and recommendations of the Technical Advisory, which include the following analysis thresholds by land use project type:
• For residential projects: a project would result in a significant impact if the project has a home-based VMT per resident that is 85% or more of the baseline1 citywide average.
• For employment-focused projects (office/industrial): a project would result in a significant impact if the project has a home-based work ("commute") VMT per employee that is 85% or more of the baseline Merced County-wide average. • For retail and other goods/services project: a project would result in a significant impact if the project effect on VMT results in a net increase in VMT within the area of influence of the project.

The above metrics were chosen to reflect the nature of travel for land uses in Los Banos and to ensure that long-distance commute trips for residents are not mischaracterized in the calculation (versus the use of a Merced County-based threshold for residential projects). VMT metrics are developed using the MCAG travel demand model; a Cityfocused version of the model is currently being developed by Fehr & Peers as part of the Transportation Master Plan update.

In addition, the Guidelines outline a standardized process for the preparation of congestion-based Level of Service (LOS) analyses that are required as part of General Plan consistency analysis. While LOS is no longer part of CEQA, a consistent basis for conducting LOS studies will ensure that the effect of land use projects on the circulation 1 Baseline is defined as when the Notice of Preparation for the CEQA analysis is released. Baseline is not defined by the base year of the MCAG travel demand model. Interpolation between the base year and future year for the MCAG travel demand model may be used to develop baseline VMT information. 2 436
system are conducted in accordance with typical traffic engineering and transportation planning practice for Northern California.

ENVIRONMENTAL ASSESSMENT:

No environmental review is required as part of the implementation of CEQA thresholds required by state law.

Reviewed by:

1. Resolution

2. City of Los Banos Transportation Impact Analysis Guidelines 3 437

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438
RESOLUTION NO. --

A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF LOS BANOS APPROVING THE

TRANSPORTATION IMPACT ANALYSIS
GUIDELINES DATED APRIL 29, 2024
WHEREAS, SB 7 43 became effective on July 1, 2020, resulting in a shift in the metric by which transportation impacts are assessed pursuant to the California Environmental Quality Act (CEQA) from a level of service (LOS) based analysis to vehicle miles traveled (VMT) analysis; and
WHEREAS, the City initiated the process to update the City's existing Transportation Impact Analysis (TIA) Guidelines to establish thresholds and implementation guidance for VMT analysis; and
WHEREAS, the adoption of the TIA Guidelines is allowed by CEQA pursuant to Public Resources Code Section 21082 and CEQA Guidelines Section 15022, which specifically authorize public agencies to adopt procedures for implementing provisions of CEQA; and
WHEREAS, the TIA Guidelines are necessary to provide for the orderly and consistent implementation of the Los Banos General Plan Update 2042 in accordance with CEQA and SB 743; and
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Los Banos does hereby APPROVE THE City of Los Banos Transportation Impact Analysis Guidelines dated April 29, 2024.

The foregoing Resolution was introduced at a regular meeting of the City Council of the City of Los Banos held on the 19th day of June 2024, by Council Member _ _ _ who moved its adoption, which motion was duly seconded by Council Member --- and the Resolution adopted by the following vote:

AYES:

NOES:

ABSENT:

APPROVED:

Paul Llanez, Mayor
439
ATTEST:

Lucille L. Mallonee, City Clerk
2 440
FEHR,f PEERS
Memorandum
Date:

To:

From:

Subject:

April 29, 2024
Charles Bergson and Stacy Elms, City of Los Banos
Ian Barnes, PE and Grace Chen, Fehr & Peers
City of Los Banos Transportation Impact Analysis Guidelines WC23-3972
The purpose of these Transportation Impact Analysis (TIA) Guidelines is to establish general procedures and requirements for the preparation of transportation impact studies for development projects within the City of Los Banos. Generally, a TIA will be required to satisfy CEQA review of a proposed project. The City's General Plan requires full traffic operational analyses for all proposed new developments that will generate 100 or more peak hour trips in either the weekday AM peak hour, weekday PM peak hour, or other peak hour/period at the discretion of City staff. Additionally, operational analysis of projects generating less than 100 peak hour trips may be required at the discretion of City staff. These guidelines cover the requirements for both non-CEQA and CEQA transportation impact assessments.

Operational Assessment (Non-CEQA)
This section includes the requirements for the non-CE QA operational assessment of projects. The operational assessment includes a review of (1) multimodal site access and circulation and (2) offsite Level of Service analysis.

Multimodal Site Access and Circulation
A detailed multimodal site access and circulation plan review is required for all projects. At a minimum, the site plan review should include review of:
• Site access and interface with public roadway network including adequacy of turn-pocket lengths, driveway throat lengths, sight distance, and intersection operations • Emergency vehicle access and circulation
• Vehicular circulation within the site
100 Pringle Avenue I Suite 600 I Walnut Creek, CA 94596 I (925) 930-7100 I Fax (925) 933-7090 www.fehrandpeers.com
441
Charles Bergson and Stacy Elms, City of Los Banos
April 29, 2024

Page 2 of 8 ends

•
•
•
Pedestrian and bicycle access and circulation within and adjacent to the site Proximity to and access to/from public transit
Adequacy of vehicle and bicycle parking per City Code
Level of Service (LOS) Analysis
Although not a CEQA metric, intersection levels of service (LOS) are required to be assessed in a TIA for General Plan goal and policy compliance and to identify potential transportation improvements that could be implemented as part of the project to improve the overall operations of the transportation system for all travel modes. The City of Los Banos General Plan requires that segments operate at LOS C or better and that intersections operate at LOS Dor better for the weekday morning and afternoon peak hours of travel on all major roadways and intersections in the City.

The TIA should provide a qualitative evaluation of the project's potential adverse or beneficial effects on transportation facilities and services related to pedestrians, bicycles, and transit access and operations. The traffic analysis must recommend appropriate treatments for the transportation system to offset operational deficiencies that are found to have exceeded operational standards for the City of Los Banos.

Study Intersections
All signalized, roundabout or stop-controlled intersections to which the project would add 50 or more peak hour trips should be studied; focus should be paid to arterial-arterial, arterial-collector, arterial-local, and collector-local intersections. Additional study intersections may be selected after City staff has reviewed the trip generation, distribution, and assignment of a proposed project.

Data Collection
Two-hour morning (generally, 7:00 AM to 9:00 AM) and two-hour afternoon (generally, 4:00 PM to 6:00 PM) peak period transportation counts of vehicles, pedestrians, and bicyclists are required for all study intersections. Two-hour school dismissal peak period (generally, 2:00 PM to 4:00 PM) counts may be required at the discretion of City staff. Counts are valid for up to two years, at the discretion of City staff.

Counts shall be recorded at 5-minute or 15-minute intervals, tallied by turning movement for vehicles, heavy vehicles, and bicyclists, and by crossing leg for pedestrians. The peak hour is defined as the highest 60-minute period for each count period.

Counts should be collected during fair weather, on a Tuesday, Wednesday, or Thursday of a nonholiday week when schools are in session, and when no major road closures, construction, or 442
Charles Bergson and Stacy Elms, City of Los Banos
April 29, 2024

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incidents occur. The transportation consultant should observe each study intersection during peak periods of analysis and document their field observations to confirm that operations models reflect observed operating conditions.

Methodologies
Unless directed otherwise by the City, the method used for evaluating LOS at signalized and unsignalized intersections shall be the method defined in the latest version of the Transportation Research Board's Highway Capacity Manual (HCM). The average delay for signalized and stopcontrolled intersections should be calculated using the latest version of Synchro analysis software; side-street stop-controlled intersections should be analyzed for the worst approach (single-lane approach) or movement (multi-lane approach). Roundabout intersections should be analyzed using the latest version of the SIDRA software. Roadway segments should be evaluated using the latest edition of the Highway Capacity Software (HCS) program.

Analysis Scenarios
The transportation operations analysis shall include, as a minimum, consideration of the following scenarios. Unless otherwise directed by the City, Cumulative forecasts should be developed using the latest available Los Banos version of the Merced County Association of Governments Merced County (MCAG) travel demand model:
• Existing Conditions
• Existing Plus Project Conditions
• Near-Term (Existing Plus Approved Projects) Conditions 1 • Near-Term Plus Project Conditions
• Cumulative Conditions
• Cumulative Plus Project Conditions
Project Assessment
The TIA should include a detailed description of the project, including factors which quantify traffic generation (e.g., dwelling units, square feet of office space, persons to be employed, restaurant seats). A detailed site plan shall be provided that includes access, circulation, parking, and loading as applicable.

Trip Generation
Trip generation estimates shall be developed using the latest version of the Institute of Transportation Engineers (ITE) Trip Generation Manual. Trips should be calculated using the weighted average rates or rates from the regression equations as determined according to the 1 To be required at the discretion of City staff.
443
Charles Bergson and Stacy Elms, City of Los Banos
April 29, 2024

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guidelines in the ITE Trip Generation Manual. Other trip generation rates may be approved by the City due to the unique characteristics of a proposed project, such as mixed-use developments evaluated under the NCH RP/EPA MXD+ methodologies.

Trip Distribution and Assignment
Project trip distribution refers to the directions of approach and departure that vehicles would take to access and leave the site. A figure illustrating the percentage of peak hour projectgenerated traffic going to and from various destinations along the transportation network shall be included in the TIA. Trip distribution shall be based on the proposed land use, existing travel patterns, site access to major corridors, relative locations of complementary land uses, and model data from the MCAG travel demand model.

Trips should then be manually assigned to the road network according to the trip distribution.

The travel demand model should not be relied on for project trip assignment. A figure illustrating the assignment of peak hour project-only trips at the driveways, study intersections, and roadway segments based on the trip distribution shall be included in the TIA. If the trip distribution is different between existing, near-term, and cumulative conditions, a figure shall be provided for each different trip distribution and/or assignment with supporting discussion and justification.

Substantial Intersection Effect Criteria
CEQA impacts on the basis of LOS are automatically considered less-than-significant under Senate Bill 743. The following substantial intersection effect criteria are used to determine if the project shall sponsor improvements at study intersections due to the effect of project-added traffic at the intersection.

Signalized Intersections
• For intersections operating at an acceptable LOS, Project-related traffic causes the LOS rating to deteriorate from LOS D or better to LOS E or F.
• For intersections already operating at an unacceptable LOS without the Project it is considered a deficiency if the Project increases the average intersection delay by five or more seconds.

Unsignalized Intersections
• The addition of Project traffic causes an unsignalized intersection to deteriorate from LOS D or better to LOS E or F overall or the worst-case movement. The peak hour signal warrant (Warrant 3) must be met.
• For unsignalized intersections already operating at an LOS E or F prior to the addition of Project traffic, the Project increases delay (worst approach/movement for side-street stop444 Charles Bergson and Stacy Elms, City of Los Banos
April 29, 2024

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control, and whole intersection delay for all-way stop-control and roundabouts) by five or more seconds. The peak hour signal warrant (Warrant 3) must be met.

CEQA Assessments
When discretionary action is taken on a project, CEQA Transportation analysis is typically required.

In those instances, projects are required to prepare study elements to address CEQA criteria in addition to elements of a local transportation study. Most notable is the requirement to prepare a vehicle-miles of travel (VMT) assessment, as well as assess a project's consistency with adopted plans, potential to increase hazards due to a geometric design feature, or result in inadequate emergency access.

CEQA Vehicle-Miles of Travel (VMT) Analysis
The most recent CEQA Guidelines and OPR Technical Advisory on Evaluating Transportation Impacts in CEQA (2018) recommend VMT as the most appropriate measure of project CEQA Transportation impacts.

VMT Thresholds of Significance
The following are CEQA thresholds of significance related to VMT. If the thresholds of significance are exceeded, mitigation measures and monitoring are required to alleviate the significant impact. • For residential projects: a project would result in a significant impact if the project has a home-based VMT per resident that is 85% or more of the baseline2 citywide average. • For employment-focused projects (office/industrial): a project would result in a significant impact if the project has a home-based work ("commute") VMT per employee that is 85% or more of the baseline Merced County-wide average.
• For retail and other goods/services project: a project would result in a significant impact if the project effect on VMT results in a net increase in VMT within the area of influence of the project.

The VMT analysis principles in the OPR Technical Advisory should be used to develop analysis methodologies and significance thresholds for other types of projects (e.g. the employment portion of a hotel project should be analyzed using the employment threshold, and the visitor portion of a hotel project should be analyzed using the goods/services threshold). The VMT 2 Baseline is defined as when the Notice of Preparation for the CEQA analysis is released. Baseline is not defined by the base year of the MCAG travel demand model. interpolation between the base year and future year for the MCAG travel demand model may be used to develop baseline VMT information. 445
Charles Bergson and Stacy Elms, City of Los Banos
April 29, 2024

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analysis shall not artificially truncate the VMT calculation at political or other artificial boundaries, per the OPR Technical Advisory.

Project VMT Screening
Screening criteria per OPR Technical Advisory may be used to identify the types, characteristics, and/or locations of land use projects that would not exceed VMT thresholds of significance. If a project, or components of the project, meet any of the screening criteria, then it may be presumed that VMT impacts would be less than significant for the project/component, and a detailed VMT analysis is not required for the CEQA Transportation section. VMT analysis may still be required as in input to CEQA Greenhouse Gas, Air Quality, and Energy section analyses.

It is noted that City staff may deny the use of screening criteria if substantial evidence suggests that the project is not appropriate for screening.

VMT Assessment for Non-Screened Development
Projects not screened through the steps above should complete a VMT analysis and forecasting through the MCAG model to determine if they have a significant VMT impact. This analysis shall include "projected generated VMT" and "project effect VMT" estimates for the project TAZ(s) under the following scenarios:
• Baseline Conditions
• Baseline Plus Project Conditions
• Cumulative No Project Conditions
• Cumulative Plus Project Conditions
VMT Mitigation Measures
To mitigate VMT impacts, the following general choices.are available to projects:
• Modify the project's design features and/or land uses to reduce project trips or reduce trip length.
• Moving the proposed development to a more travel-efficient area (i.e. area with access to high quality transit, or other transportation solutions that reduce the length/number of trips).
• Implement Transportation Demand Management (TDM) measures to reduce VMT generated by the project.

Proposed projects shall utilize the latest version of the California Air Pollution Control Officers Association ("CAPCOA") mitigation measure handbook document3 to estimate the feasible amount of VMT mitigation. The TDM+ tool is available for use free of charge to calculate VMT 3 Current version of the most up to date handbook as of August 22, 2023. 446
Charles Bergson and Stacy Elms, City of Los Banos
April 29, 2024

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mitigation. Analysts must demonstrate the applicability of the VMT reductions within the transportation context of the site and project (e.g. connecting transit, parking supply provided, etc.) to ensure than the VMT reduction is reasonable. Analysts are strongly cautioned to ensure that double-counting of VMT reduction benefits does not ocurr given that the MCAG model is sensitive to development variables such as density and mode split associated with proximity to compatible uses.

Other Environmental Considerations
As noted above, the updated CEQA Guidelines Appendix G Checklist contains three additional criteria beyond the VMT evaluation criteria discussed in preceding sections. These checklist questions include:

Would the project:

7. Conflict with a program, plan, ordinance or policy addressing the circulation system, including transit, roadway, bicycle and pedestrian facilities?

3. Substantially increase hazards due to a geometric design feature (e.g. sharp curves or dangerous intersections) or incompatible uses (e.g. farm equipment)?

4. Result in inadequate emergency access?
TIAs should address these three questions, considering the unique characteristics of the project, including its location, size, design, use mix, transportation and urban form context, and other relevant details. In the assessment of transit, bicycle and pedestrian network, the following standards of significance shall be used.

Transit System
The project would create a significant impact related to transit service if the following criteria is met:
• The project interferes with existing transit facilities or precludes the construction of planned transit facilities.

Bicycle System
The project would create a significant impact related to the bicycle system if any of the following criteria are met:
• Disrupt existing bicycle facilities; or
• Interfere with planned bicycle facilities; or
• Create inconsistencies with adopted bicycle system plans, guidelines, policies, or standards.
447
Charles Bergson and Stacy Elms, City of Los Banos
April 29, 2024

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Pedestrian System
The project would create a significant impact related to the pedestrian system if any of the following criteria are met:
• Disrupt existing pedestrian facilities; or
• Interfere with planned pedestrian facilities; or
• Create inconsistencies with adopted pedestrian system plans, guidelines, policies, or standards.
448
LOs Banos
t th,- C,ossmads of <...,di(o, ma

COMMUNITY AND ECONOMIC DEVELOPMENT DEPARTMENT
Date: June 14, 2024
Regarding: Notice of Public Hearing
Proposal: Tentative Parcel Map #2024-01 -Amie Chang
NOTICE IS HEREBY GIVEN THAT a Public Hearing will be held by the Los Banos Planning Commission to consider a Categorical Exemption from the California Environmental Quality Act (CEQA) pursuant to Section 15315, Minor Land Divisions and Tentative Parcel Map #2024-01 to subdivide an approximate

27.10-acre parcel into five (5) parcels with a remainder. The proposed project is located within the Highway Commercial and Medium Density Zoning Districts at the southwest corner of Pacheco Blvd. and Ward Road; more specifically identified as Assessor's Parcel Number: 083-140-021.

A PUBLIC HEARING on this matter will be held at the next scheduled meeting of the Los Banos Planning Commission on Wednesday, June 26, 2024 at 6:00 p.m. in the Council Chambers of Los Banos City Hall, located at 520 "J" Street, Los Banos, California. Questions regarding the above-referenced item may be directed to Stacy Souza Elms, Community and Economic Development Director, at City Hall or at (209) 827-2433.

All persons are invited to be present at the public hearing. Written and oral testimony is invited. Notice is hereby further given that if you challenge the above-described Project 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 Planning Commission at, or prior to, the public hearing.

Additional information may be obtained from the Community & Economic Development Department at 520 J Street, Los Banos, California. In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the Office of the City Clerk at (209) 827-7000. Notification at least 72 hours prior to the public hearing will enable the City to make reasonable arrangements to allow participation at this hearing

THE CITY OF LOS BANOS
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Stacy Souza Elms
Community and Economic Development Director
449
LOsBanos
At 1hc lrl>ssroa.ds of California

COMMUNITY AND ECONOMIC DEVELOPMENT DEPARTMENT
Date: June 12, 2024
Regarding: Notice of Public Hearing
Proposal: Mobile Food Vendor Permit #2024-05 - Maria De La Torre Alvarado - Antojitos Lokos
NOTICE IS HEREBY GIVEN THAT a Public Hearing will be held by the Los Banos Planning Commission to consider a Categorical Exemption from the California Environmental Quality Act (CEQA) and a Mobile Food Vendor Permit #2024-05 to allow the operation of a mobile food vending vehicle on private property for Maria De La Torre Alvarado dba Antojitos Lokos. The subject property is located within the Mixed-Use Zoning District at 702 I St., more specifically identified as Assessor's Parcel Number: 025-212-017.

A PUBLIC HEARING on this matter will be held at the next scheduled meeting of the Los Banos Planning Commission on Wednesday, June 26, 2024 at 6:00 p.m. in the Council Chambers of Los Banos City Hall, located at 520 "J" Street, Los Banos, California. Questions regarding the above-referenced item may be directed to Justin Ragunton, Assistant Planner, at City Hall or at (209) 827-2431.

Additional information may be obtained from the Community & Economic Development Department at 520 J Street, Los Banos, California. In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the Office of the City Clerk at {209) 827-7000. Notification at least 72 hours prior to the public hearing will enable the City to make reasonable arrangements to allow participation at this hearing

THE CITY OF LOS BANOS
450
LOsBanos
Al thr Cn,ssroadi of California

COMMUNITY AND ECONOMIC DEVELOPMENT DEPARTMENT
Date: June 12, 2024
Regarding: Notice of Public Hearing
Proposal: Cottage Food Operation #2024-02 - 1873 Loma Linda Circle NOTICE IS HEREBY GIVEN THAT a Public Hearing will be held by the Los Banos Planning Commission to consider a Categorical Exemption from the California Environmental Quality Act (CEQA) Pursuant to Section 15301, Existing Facilities, and Cottage Food Operation #2024-02 for Briana Hernandez Mercado DBA Bagel Barn at 1873 Loma Linda Circle, more specifically identified as Assessor's Parcel Number: 083-474-009.

A PUBLIC HEARING on this matter will be held at the next scheduled meeting of the Los Banos Planning Commission on Wednesday, June 26, 2024 at 6:00 p.m. in the Council Chambers of Los Banos City Hall, located at 520 "J" Street, Los Banos, California. Questions regarding the above-referenced item may be directed to Justin Ragunton, Assistant Planner, at City Hall or at (209) 827-2431.

All persons are invited to be present at the public hearing. Written and oral testimony is invited. Notice is hereby further given that if you challenge the above described Project 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 Planning Commission at, or prior to, the public hearing. •
Additional information may be obtained from the Community & Economic Development Department at 520 J Street, Los Banos, California. In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the Office of the City Clerk at (209) 827-7000. Notification at least 72 hours prior to the public hearing will enable the City to make reasonable arrangements to allow participation at this hearing 451

Los Banos City CouncilJune 19, 2024

Los Banos City Council
June 19, 2024