Agenda packet — Los Banos City Council, August 6, 2025 (part 2 of 2)

4. The approval of the off-sale of alcohol will not contribute to the undue proliferation of alcohol sales in the area where that use would be undesirable taking into account the characteristics of the area. The entitlement will include conditions of approval which will regulate the operational characteristics of allowing the sale of general alcohol and are intended to preserve the public health, safety, or welfare of persons and property in the vicinity including crime prevention and loitering.

5. The proposed use is not located within the immediate vicinity to any churches, temples, or synagogues; public, parochial, or private elementary, junior high, or high schools; public parks or recreation centers; or public or parochial playgrounds.

The nearest school would be Grasslands Elementary School which is located approximately 1 , 170 feet southwest of the project site. The nearest places of worship is approximately 960 feet north of the project site. The project will include conditions of approval which regulate the operational characteristics of allowing the selling of alcohol which are intended to preserve the public health, safety, and welfare of persons and property in the vicinity.

6. The project is located on the northeast corner of Mercey Springs Rd. and Willmott Rd. which is zoned for commercial uses. Conditions of approval will regulate loitering and operational characteristics to insure that the proposal will not interfere with the movement of people along the public right-of-way.

7. The nearest residence is located south of the project site. It is not anticipated that the proposed use would have a negative impact on the surrounding area. The applicant will be conditioned to operate the establishment in such a manner as to preserve the public safety, health and welfare, to prevent the use from becoming a nuisance and to operate the business in compliance with all laws, ordinances and regulations regarding the sale of alcohol. Furthermore, at all times the facility shall be operated and maintained to comply with State Laws, The City of Los Banos Municipal Code, adopted Building Codes and all other applicable laws and ordinances pertaining to the proposed use.

All alcohol sales will occur within the market/cafe. The applicant has submitted a security plan identifying camera locations.

Alcoholic Beverage Control
The California Department of Alcoholic Beverage Control (ABC) is the issuing authority for a Type 21 alcohol license. The City's authority relates to land use approvals through its Zoning Code. ABC may apply additional restrictions, including:
• Hours of sale
• Employee qualifications
• Type of alcohol sold
• Conditions related to the operation and conduct of the licensee 5 249
ABC also has the authority to deny a license based on the applicant's qualifications or prior violations of the Alcoholic Beverage Control Act.

Census Tract
The project site is located within census tract 23.05. As of the date of this report, there are two existing off-sale licenses in this tract. Approval of this request would increase that number to three.
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License Business Name Premises Address
Type
21 Circle K Stores, Inc. 410 N. Mercey Springs Rd.
20 7 Eleven, Inc. 390 N. Mercey Springs Rd.

Type 20 license = Off-sale beer and wine Type 21 license= Off-sale general The proposed alcohol sales area is shown on the attached floor/ security plan.

PUBLIC COMMENT:

A public hearing notice was published in the Westside Express and notices were mailed out to property owners within a 300' radius of the project site on Wednesday, July 30, 2025. As of the date of this staff report, no comments were received. 6 250
Reviewed by:

Gary Brizzee, Interim City Manager
Attachments:
1 . Resolution
Exhibit A: CEQA Findings
Exhibit B: Findings for Approval
Exhibit C: Conditions of Approval

2. Security Plan

3. Public Hearing Notice - July 30, 2025
7 251
RESOLUTION NO. --

A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF LOS BANOS APPROVING
CONDITIONAL USE PERMIT #2023-10 TO ALLOW

FOR THE OFF-SALE OF GENERAL ALCOHOL
(TYPE 21 LICENSE) FOR VINTNERS
DISTRIBUTORS, INC. LOCATED AT THE

NORTHEAST CORNER OF MERCEY SPRINGS

ROAD AND WILLMOTT AVENUE
WHEREAS, the City of Los Banos Community and Economic Development Department received an application from Vintners Distributors, Inc. requesting approval of Conditional Use Permit #2023-10 to allow the off-sale of general alcohol (Type 21 license) at a proposed convenience market/cafe within a larger commercial development located at the northeast corner of Mercey Springs Road and Willmott Avenue (APN: 428- 280-011 ); and
WHEREAS, the proposed use is located within the Highway Commercial (H-C) Zoning District, where the sale of alcohol for off-site consumption is conditionally permitted; and
WHEREAS, the Planning Commission, on July 9, 2025, adopted the Mitigated Negative Declaration (SCH #2025060607) for the Vintners Distributors - Willmott Commercial Development Center, including the subject Conditional Use Permit, and found that with mitigation measures the project would not have a significant impact on the environment, in accordance with the California Environmental Quality Act (CEQA); and WHEREAS, the Planning Commission, on July 9, 2025, considered the requested Conditional Use Permit and recommended approval to the City Council; and WHEREAS, the City Council finds that the proposed off-sale of general alcohol use is consistent with the General Plan and Municipal Code and meets the findings required under Section 9-3.2322 of the Los Banos Municipal Code for the issuance of a Conditional Use Permit, including those specific to alcohol-related uses; and WHEREAS, the City Council held a duly noticed public meeting on August 6, 2025, to consider the application and received and considered all staff reports, public testimony, and written materials related to the application.

BASED UPON THE EVIDENCE PRESENTED AT THE PUBLIC HEARING, the City Council of the City of Los Banos hereby makes the appropriate findings set forth in 1 252
Exhibit A (California Environmental Quality Act (CEQA) Findings), and Exhibit B (Findings for Approval), attached hereto and incorporated herein by this reference.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Los Banos does hereby affirm the determination that the project was adequately analyzed within Mitigated Negative Declaration (SCH #2025060607) and approves Conditional Use Permit #2023-10 to allow the off-sale of general alcohol (Type 21 License), for the convenience market/cafe located at the northeast corner of Mercey Springs Road and Willmott Avenue; more specifically identified as Assessor's Parcel Number: 428-280-011, subject to the Conditions of Approval set forth in Exhibit C, attached hereto and incorporated herein by this reference.

The foregoing Resolution was introduced at a regular meeting of the City Council of the City of Los Banos held on the 6th day of August 2025, 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:

Michael Amabile, Mayor
ATTEST:

Lucille L. Mallonee, City Clerk
2 253

EXHIBIT A

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) FINDINGS FOR CONDITIONAL USE PERMIT #2023-10-VINTNERS DISTRIBUTORS, INC.

Pursuant to the requirements of California Public Resources Code Section 21000 et seq. ("CEQA") and Title 14, California Code of Regulations Section 15000 et seq. (the "CEQA Guidelines"), the City as Lead Agency under CEQA adopts the following findings required by CEQA, along with the facts and evidence upon which each finding is based.

The City of Los Banos City Council hereby finds as follows:

1. Conditional Use Permit #2023-10 was evaluated within the context of the Mitigated Negative Declaration (MND) (SCH #2025060607) prepared for the Vintners Distributors, Inc. - Willmott Commercial Development project. This MND was adopted by the Los Banos Planning Commission on July 9, 2025. Staff has determined that the environmental review remains adequate and that no new circumstances or substantial changes have occurred that would warrant a subsequent MND pursuant to CEQA Guidelines Section 15162.

2. The Conditional Use Permit was duly noticed on Wednesday, July 30, 2025, for consideration at a public hearing scheduled for Wednesday, August 6, 2025.

3. No further environmental documentation is required. The proposed use was contemplated and adequately analyzed under the adopted MND. 3 254

EXHIBIT B
FINDINGS FOR APPROVAL FOR CONDITIONAL USE PERMIT #2023-10 - VINTNERS DISTRIBUTORS, INC.

The City of Los Banos City Council hereby finds as follows:

1. General Findings:
a. The project is consistent with the City of Los Banos General Plan.

The existing General Plan land use designation for the project site is Commercial, which is intended for commercial development, located off of Pacheco Blvd, allowing for commercial uses.

The following specific General Plan Goals, Objectives, and Policies are applicable to the proposed project:

ECONOMIC DEVELOPMENT GOAL ED-2:

Seek and promote particular businesses or development projects that provide needed local goods, services, employment, or those that enhance the city's physical and social wellbeing and quality of life.

LAND USE GOAL LU-5:

Provide residents with excellent employment and shopping opportunities.

Evidence/Analysis: The proposed convenience marketlcafe will have the ability to provide a wider range of service for customers and allows the convenience market to compete with similar type businesses. The project aligns with the City's goals for economic development and land use. b. The zoning designation for the project site is Highway Commercial (HC). The purpose of the Highway Commercial District is to provide a district for commercial uses which do not specialize in serving the pedestrian shopper but rather, because of their character, are more appropriately located along a highway or major street and where drive-in operations are more feasible.

Evidence/Analysis: The proposed use complies with the Los Banos Municipal Code Title 9, Chapter 3, Article 13. The convenience market/ cafe, including the off-sale of general alcohol, are appropriate in this zoning district and compatible with surrounding commercial residential uses. 4 255

2. That the proposed use or project will not be a nuisance or detrimental to the public health, safety, morals, comfort, and general welfare of the persons residing or working in the neighborhood of such proposed use.

Evidence/Analysis: The approval of the off-sale of alcohol will not contribute to the undue proliferation of alcohol sales in the area where that use would be undesirable taking into account the characteristics of the area. The entitlement will include conditions of approval which will regulate the operational characteristics of allowing the sale of general alcohol and are intended to preserve the public health, safety, or welfare of persons and property in the vicinity including crime prevention and loitering.

3. That the proposed use is compatible with the adjacent uses, properties, and neighborhoods and will not be detrimental or injurious to property and improvements in the neighborhood or to the general welfare of the City.

Evidence/Analysis: The proposed use will be conducted in a location in where such commercial uses are permitted and will not result in significant operational changes to the surrounding area. The areas function and character is Commercial, which includes uses that are allow for the off-sale of alcohol. The project would include conditions of approval which regulate the operational characteristics of allowing the selling of alcohol and are intended to preserve the public health, safety, or welfare of persons and property in the vicinity.

2. Specific Findings:

1. That the proposal will not contribute to undue proliferation of such uses in an area where additional ones would be undesirable with consideration given to the area's function and character, problems of crime and loitering, and traffic problems and capacity.

Evidence/Analysis: The primary use in conjunction with the selling of general alcohol is a convenience market/cafe. As reflected in the staff report, the number of off-sale licenses in the Census Tract 23.05 is currently two (2). The census tract area and function is primarily commercial in nature, and is entirely consistent with a fuel station and convenience market/cafe with the off-sale of general alcohol.

The proposed off-sale of general alcohol is complementary to convenience market/cafe use that is compatible and complementary of existing commercial uses in the area. The project would include conditions of approval which regulate the operational characteristics of allowing the selling of alcohol and are intended to preserve the public health, safety, or welfare of persons and property in the vicinity including crime prevention and loitering. Staff is unaware of any significant problems in the area related to crime and loitering, which would be negatively affected by the off-sale of general alcohol at this location. 5 256

2. That the proposal will not adversely affect adjacent or nearby churches, temples, or synagogues; public, parochial, or private elementary, junior high, or high schools; public parks or recreation centers; or public or parochial playgrounds.

Evidence/Analysis: Conditions of Approval have been incorporated into the project which regulate the operational characteristics of allowing the selling of alcohol and are intended to preserve the public health, safety, or welfare of persons and property in the vicinity. The project is not located within the immediate proximity of any sensitive uses.

3. That the proposal will not interfere with the movement of people along an important pedestrian street.

Evidence/Analysis: Alcohol will not be allowed to be consumed on the premises of the convenience market/cafe at any time and it is not anticipated that persons will congregate on sidewalks or streets as a result of the proposed use. Signage will also be provided on the property and building which prohibit loitering. It is not anticipated that the off-sale of beer and wine at this location will adversely affect any important pedestrian right of ways.

4. That where the proposed use is in close proximity to residential uses, and especially to bedroom windows, the use will be limited in hours of operation, or designed operated so as to avoid the disruption of residents' sleep between the hours of 10:00 p.m. and 7:00 a.m.

Evidence/Analysis: There are residential units south of the project site. The project will include conditions of approval which regulate the operational characteristics of allowing the selling of alcohol and are intended to preserve the public health, safety, and welfare of persons and property in the vicinity. 6 257

EXHIBITC
CONDITIONS OF APPROVAL FOR CONDITIONAL USE PERMIT #2023-10 - VINTNERS DISTRIBUTORS, INC.

1. The following conditions of approval shall apply to and be applicable to the applicant, property owner, and/or operator. Reference to applicant, property owner, and/or operator shall be interpreted to include all.

2. Conditional Use Permit #2023-10 is for Vintners Distributors, Inc. located at the northeast corner of Mercey Springs Rd. and Willmott Ave., Assessor's Parcel Number:
428-280-011 and the requested use shall automatically and without notice expire after one (1) year from date of approval by the Los Banos City Council unless commenced.

The City for cause may revoke this Conditional Use Permit. Any expansion, intensification, or significant change to the primary use and the uses approved under this Conditional Use Permit shall be permitted only upon modification of this Conditional Use Permit or approval of a separate Conditional Use Permit application.

The Conditional Use Permit shall automatically and without notice expire one year after discontinuance of the primary use and/or the uses approved under the Conditional Use Permit.

3. The applicant/operator shall comply with all other requirements, laws and policies of other governmental agencies in the conduct and operation of said business.

4. The applicant/operator shall obtain and maintain an active Type 21 "off-sale of general alcohol" license as defined by the Department of Alcoholic Beverage Control and shall provide a copy of said license upon issuance by the Alcoholic Beverage Control to the Community and Economic Development Department prior to the sale of alcohol on the premises.

5. A copy of these Conditions of Approval and the California Department of Alcoholic Beverage Control license are required to be kept on the premises and presented to any law enforcement officer or authorized City official upon request.

6. The applicant/operator shall be responsible for maintaining the exterior of the premises free of litter and trash at all times including the parking lot areas in front of the premises. No storage of equipment, supplies, or merchandise of any kind shall be allowed in the front or rear exterior of the building. All deliveries shall be made from the rear of the building.

7. The Planning Commission reserves the right to review and/or revoke this permit should the applicant not adhere to the Conditions of Approval. The City may amend or impose new conditions to mitigate adverse effects in the neighborhood resulting from the use of alcohol on the premises.
7 258

8. The applicant/operator agrees to indemnify, hold harmless, and defend the City of Los Banos, its officers, agents and employees from any and all liability or claims that may be brought against the City of Los Banos arising out of its approval of this permit, or the environmental determination rendered in connection with the permit approval, or arising out of the operation of the use or uses allowed under the permit, save and except that caused solely by the City's active negligence.

9. The exterior of the premises, including parking lot areas (front and rear), shall be adequately illuminated, to the satisfaction of the Police Chief, during all hours of darkness in a manner so that persons accessing those areas at night are identifiable by law enforcement personnel.

10. The premises shall be operated primarily as a convenience market as described in the application prepared by the applicant and filed with the Community and Economic Development Department. Any substantial or significant changes in use or operation of the premises from the Operational Statement may cause a review, amendment or revocation of the Conditional Use Permit. The applicant shall notify the Community and Economic Development Department of any substantial or significant changes in use or operation of the premises from the Operational Statement. The off- sale of beer and wine shall be ancillary to the primary use as a convenience market/ cafe. 11 . The use of the premises of the subject site shall be consistent with the Conditions of Approval and shall not be operated in a manner that deviates from the approved Conditional Use Permit filed application and operational statement, which shall constitute a violation and may result in the revocation or modification of the permit upon written notice to the owner of the subject site.

12.Authorization of a Conditional Use Permit granted pursuant to the provisions of Section 9-3.2322 of the Los Banos Municipal Code continue to be valid upon change of ownership of the site or structure which was the subject of the Conditional Use Permit application provided the use shall be subject to all provisions of the Municipal Code and all conditions placed on approval of the Conditional Use Permit are continually met. The applicant shall immediately notify the Community and Economic Development Department of any changes in ownership.

13. This Conditional Use Permit shall be subject to revocation by the Community and Economic Development Director or the Planning Commission upon a finding that:
a. Conditions of approval have not been fulfilled;
b. A significant change or intensification of the approved use; c. The use has resulted in a nuisance or detriment to the public health, safety, morals, comfort, and general welfare of the persons residing or working in the neighborhood or is detrimental or injurious to property and improvements in the neighborhood or to the general welfare of the City.
8 259

14. Consumption of alcohol shall not be allowed on the premises of the fuel station and convenience market/cafe.

15. No loud amplification of music or voice shall be allowed outside.

16. The applicant/operator shall have monitoring cameras in the exterior and interior of the convenience market/ cafe at all times to the satisfaction and approval of the Police Chief. The applicant shall always maintain the surveillance equipment in working order and keep the video recordings for 30 days to be made available to law enforcement upon request.

17. The premises shall be operated in accordance with the Los Banos Municipal Code Noise Ordinance.

18. The applicant shall acknowledge and execute receipt of a copy of the foregoing Conditions of Approval.

19. The applicant/operator shall provide signs prohibiting loitering on the property and/or building subject to the approval of the Community and Economic Development Director.

20. This approval is conditioned upon and shall be effective upon payment in full of all outstanding invoices pursuant to the Cost Recovery Contract. 9 260
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COMMUNITY AND ECONOMIC DEVELOPMENT DEPARTMENT
Date: July 23, 2025
Regarding: Notice of Public Hearing
Proposal: Conditional Use Permit# 2023-10 - Type 21 Alcohol License for Vintners Distributors LLC
NOTICE IS HEREBY GIVEN THAT a Public Hearing will be held by the Los Banos City Council to consider Conditional Use Permit #2023-10 for the off-sale of general alcohol (Type 21 ABC License), for Vintners Distributors LLC. An Initial Study/ Mitigated Negative Declaration (SCH #2025060607) was prepared for the project and approved on July 9, 2025. The proposed project is located in the Highway Commercial Zoning District (H-C}, at the northeast corner of Mercey Springs Road and Willmott Avenue; more specifically identified as Assessor's Parcel Number: 428-280-011.

The Los Banos Planning Commission held a public hearing on Wednesday, July 9, 2025, for the purpose of considering the above-mentioned project. At the completion of the public comment, the Planning Commission recommended approval of Conditional Use Permit #2023-10 to the Los Banos City Council.

A PUBLIC HEARING on this matter will be held at the next scheduled meeting of the Los Banos City Council on Wednesday, August 6, 2025 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 $t 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
Stacy Souza Elms
Community and Economic Development Director
262
TO:

FROM:

DATE:

LOsBanos
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Agenda Staff Report
Mayor Amabile and City Council Members
Stacy Souza Elms, Community and Economic Development Director ~ Paul Tualla, Fire Chief
August 6, 2025
TYPE OF REPORT: Agenda Item
SUBJECT: Project Status Update - Fire Station #4 and Emergency Operations Center, Development Services Center, and Old Police Station Property Recommendation:

Receive a status update on the Fire Station #4 and Emergency Operations Center (EOC), Development Services Center (DSC) project, and provide direction on the future of the Old Police Station property.

Fire Station #4 Project:

The City of Los Banos is currently working on the planning and development of Fire Station #4, which will include an integrated Emergency Operations Center (EOC) and training components. This multi-functional facility is designed to enhance fire protection, emergency preparedness, and training capabilities, particularly for the westside of Los Banos.

The project will be constructed on a 1 .4-acre site off of Catherine Hostetler Blvd. (west of Walmart). The City has selected Vanir Construction Management, Inc. to assist in managing the project from start to finish, and is working with the Taylor Group on the design of the project.
1 ITEM 9
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Key Facility Features:

Fire Station #4
• Size: 8,925 square feet
• Apparatus Bays: 2
• Staffing Capacity: 2 to 4 personnel Initially, with staffing up to 8 personnel • Parking: 22 stalls with gated and card-access security • Design Highlights:
o Clean Station Concept
o Crew Quarters
o Fitness Room
o Turnout/Decontamination Room
o Police Department Work Station
o Designed and built with future expansion in mind
Emergency Operations Center (EOC)
• Size: 5,700 square feet
• Occupancy Load: Approximately 80-100 persons
• Functional Areas:
o Training and meeting rooms
o Breakoutspaces
o Full kitchen
o Integrated training facility
• EV Parking: 4 stalls with 2 electric vehicle chargers Training Components
• Technical rescue training props
• Vehicle extrication slab
• Drafting pit for water supply training
Total project cost is $11.5 million. In 2019, the City was awarded $5 million in State funding from Senator Anna Caballero and Assemblymember Adam Gray for this project.

With accrued interest, the available fund balance now stands at $5.4M. Additional funding sources include Measure P and Development Impact Fees.

Next steps are to continue design development and site preparation, finalize permitting and environmental requirements, and coordinate equipment and furniture planning. Staff will return to City Council with updates at key project milestones.

Development Services Center (DSC):

The City of Los Banos is preparing for the comprehensive renovation of the former Police Annex (535 J Street), which will be transformed into a centralized Development Services Center (DSC). This new "one-stop shop" will consolidate multiple departments essential to the City's growth and development, including: Planning, Building, Engineering, Fire Prevention, Housing, and Economic Development. The new facility will improve customer service by streamlining the permitting and development review process, enhancing 2 264
interdepartmental collaboration, and providing a more efficient and accessible experience for residents, businesses, and developers.

The annex building consists of a total of 9,322 square feet and the scope of the project includes interior renovations to modernize functionality and efficiency, including the removal of the former bank infrastructure.

Upon completion of the DSC, the City will undertake internal improvements at City Hall, including updated cubicles, offices, electrical systems, and carpet replacement. These upgrades will modernize the workspace and improve functionality for staff.

In the Fiscal Year 2024-2025 and Fiscal 2025-2026 Adopted Budgets, the City Council committed $8 million to fund the Police Annex Renovation/ City Hall improvements/ Old Police Station Facility.

To support this effort, the City released a Request for Qualifications (RFQ) on July 30, 2025, for a Progressive-Design-Build Entity for the Los Banos Civic Center Project. This qualifications-based selection process will identify a single entity responsible for both the design and construction of the project.

Old Police Station Facility:

Staff is seeking City Council direction regarding the future of the Old Police Station property (945 Fifth Street), which consists of 3 parcels totaling approximately 0.9 acres:
• Old LBPD Headquarters: 6,400 square feet
• Storage house next door (444 J Street): 1,100 square feet • Tessie Mazzina House (428 J Street): 1,600 square feet.

To gather public input, staff hosted a Community Workshop on July 8th , and conducted a social media poll, presenting the following options:

1. Remodel and reuse the building

2. Demolish building and create open public use

3. Repurpose for a business purpose

4. Sell the property for private development

5. Other
The community workshop had 24 people in attendance and the majority favored demolition and creation of open public/ green space. The social media poll received 343 votes with remodel receiving 134 votes and demolition receiving 121 votes.

A preliminary review of the Old Police Station building indicates several challenges for reuse:
• Insufficient public area
• Inadequate HVAC system
3 265
• Significant deferred maintenance
• Aging and difficult to maintain 1969-era infrastructure • Non-compliant ADA accessibility
Demolishing the structures could provide immediate visual improvements and create flexible open space for uses such as:
• Farmers markets
• Mobile food vendor events
• Pop-up markets
• Amphitheater or small event venue
• Public art installations
This could become a new community asset in the heart of downtown Los Banos.

Requested Council Action:

Staff requests direction from the City Council on the future of the Old Police Station facility. Options include:
• Pursuing a feasibility study for building reuse
• Moving forward with planning for demolition and open space improvements • Exploring other options
Fiscal Impact:

The total cost of the Fire Station #4, Emergency Operations Center (EOC), and related training facilities is estimated at $11.5 million. Funding sources include:
• $5.4 million in State funds (original $5 million allocation plus accrued interest) • Measure P funds
• Development Impact Fees
The City Council has allocated $8 million from the General Fund in Fiscal Year 2025- 2026 to fund:
• Renovation of the Police Annex into the Development Services Center (DSC) • Interior improvements at City Hall
• Planning and preliminary work related to the Old Police Station facility The fiscal impact related to the Old Police Station property is currently undetermined and will depend on the direction provided by City Council. Potential costs include:
• Feasibility Study: Estimated costs would cover architectural, engineering, and ADA assessments
4 266
• Demolition: Includes abatement, demolition, and site restoration • Open Space Improvements (if applicable): Costs for landscaping, infrastructure, public amenities, or interim use development
Staff will return to Council with detailed cost estimates once a clear direction is provided.

Reviewed by:

Gary
g_
Brizzee,
':¥ ~ Interim City Manager ~ Minerva Moreno,
5 267

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LOsBanos
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Agenda Staff Report
TO:

FROM:

DATE:

Mayor Amabile and Council Members
Justin Melden, Police Commander~.....,-
August 6th , 2025
SUBJECT: Military Equipment Use Report
TYPE OF REPORT: Agenda Item
Recommendation:

Staff recommends accepting the report pursuant to the requirement of AB-481, as submitted.

Background:

Assembly Bill 481, (AB 481) codified in Government Code sections 7070 through 7075, requires a law enforcement agency to obtain approval from the applicable governing body, via adoption of a Military Equipment Use Policy by ordinance, prior to the law enforcement agency funding, acquiring, or using military equipment. In May of 2022, City Council adopted a resolution approving continued use of equipment defined as "military equipment" in AB 481. In subsequent years, an annual report on the use, auditing and acquisition of equipment outlined in AB-481 is due to council annually.

On September 30, 2021, Governor Newson signed policing reform legislation aimed at increasing transparency of peace officer misconduct records and creates a system to decertify peace officers for serious misconduct, improving policing responsibility and accountability guidelines, raising eligibility standards, banning harmful restraint techniques, and creating a public forum for the funding, acquisition and use of military equipment.
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Effective January 1, 2022, law enforcement agencies within California were required to abide by the rules set forth within AB 481, defining military equipment, requiring approval by the City Council and public engagement for the use and acquisition of military equipment. The Los Banos Police Department has responsibly purchased and utilized this equipment within our community for decades without misuse or abuse. AB 481 requires a law enforcement agency to make its policy public.

The City of Los Banos has complied with these requirements and are continuing the use and acquisition of such equipment as outlined in AB-481.

Discussion:

The term "military equipment", as used in AB 481, does not necessarily indicate equipment that has been used by the military. "Military equipment" here includes, but is not limited to, unmanned aerial or ground vehicles, armored vehicles, command and control vehicles, pepper balls, less lethal shotguns, less lethal 40mm projectile launchers, long range acoustic devices, and flashbangs. These items provide police officers with the ability to safely resolve volatile situations which otherwise might rise to the level of a lethal force encounter.

The Los Banos Police Department has equipment that meets criteria of 5 of the 15 categories (categories 1,5,10,12 and 14) set forth in AB 481:
• Unmanned, remotely piloted, powered aerial (Drones) or ground vehicles (Equipment Category 1 ).
• Command and control vehicles that are either built or modified to facilitate the operational control and direction of public safety units (Equipment Category 5). • Specialized firearms and ammunition of less than 50 caliber, including firearms and accessories identified as assault weapons in penal code 30510 and penal code 30515, with the exception of standard issue handguns (Equipment Category 10).
• Munitions containing teargas or QC, excluding standard, service-issued handheld pepper spray (Equipment Category 12).
• Kinetic energy weapons and munitions (Equipment Category 14).

The Los Banos Police Department has used items described in AB-481 as military equipment on several occasions to leverage tactical advantages to safely defuse volatile encounters and take people into custody. The ability to have multiple force options ranging from long distance equipment found in category 10, to less lethal 2 270
options found in category 12 and 14 provide safer alternatives to managing hostile encounters for both the public and officers. These items provide officers with time and distance which is often crucial when dealing with violent or self-destructive individuals.

These tools have been tested in the field, and are used by law enforcement agencies to enhance citizen safety, officer safety.

The Los Banos Police Department has followed the requirements per AB-481 in creating a Military Equipment Use Policy - Policy 706 and has posted it to the department's website at https://losbanos.org/city-govemment/departments/police/ab481 / for the public to view, provide comments, complaints, and concerns. As required for transparency, the Los Banos Police Department has uploaded multiple written documents on the department's website within 30-days to meet the requirements of AB 481.

Continued Use/ Audit and Acquisition:

As a requirement of AB-481 the Department has conducted audits into the use, deployment and acquisition of equipment outlined in AB-481. This information will be updated on the department website. The continued acquisition of equipment outlined in AB-481 will occur as needed to adequately equip and train staff.

Auditing occurs during the use of force reporting review process and equipment is inspected routinely by assigned staff. Citizen concern/complaints are reviewed for any mention of the military equipment policy.

Through this reporting period there have been zero (0) reported violations of the Military Equipment Use Policy (Policy 706).

Fiscal Impact:

There is no additional fiscal impact by the continued use of equipment identified in AB481.

Reviewed by:
arry'r ~ Interim City Manager
Attachment: LBPD 2025 Annual Military Equipment Use Report (AB-481) 3 271
Los Banos Police Department
Annual Military Equipment Use Report
May-18, 2024-August 6,2025
AB-481 Report #3
1 272
Executive Summary:

Los Banos Police Department summery of AB-481 Military
Equipment Funding, Acquisition and Use Policy
On September 30, 2021, Governor Newson signed policing reform legislation aimed at increasing transparency of peace officer misconduct records, and created a system to decertify peace officers for serious misconduct, improving policing responsibility and accountability guidelines, raising eligibility standards, banning harmful restraint techniques, and creating a public forum for the funding, acquisition and use of military equipment.

AB 481 was authored by Assembly member David Chiu (D- San Francisco) to address the funding, acquisition and use of military equipment.

AB 481 definition of military equipment
The Assembly Bill has designated the following categories of items as military equipment. The Los Banos Police Department has equipment that meets 5 of the 15 categories (categories 1,5,10,12 and 14):
• Unmanned, remotely piloted, powered aerial or ground vehicles (Equipment Category 1).
• Command and control vehicles that are either built or modified to facilitate the operational control and direction of public safety units (Equipment Category 5). • Specialized firearms and ammunition of less than 50 caliber, including firearms and accessories identified as assault weapons in penal code 30510 and penal code 30515, with the exception of standard issue handguns (Equipment Category 10). • Munitions containing teargas or OC, excluding standard, service-issued hand held pepper spray (Equipment Category 12).
• Kinetic energy weapons and munitions (Equipment Category 14). 2 273
The requirements of AB 481
AB 481 requires each law enforcement agency's governing body to adopt a written military use policy by ordinance in a public forum by April 30, 2022, in order to continue the use of its previously acquired equipment effective May 1, 2022. To help guide this process, the Los Banos Police Department has crafted a summary of AB 481 for our residents, as well as the following required materials:
• Los Banos Police Department 's Lexi pol policy 706 is available to review on the city website. The AB 481 defined list of military equipment currently in Los Banos Police Department 's possession is included in the policy, as well as each items purpose, authorized used, expected lifespan, and fiscal impact.
• Establish a concern or complement process. The Los Banos Police Department has created a means for the public to submit commendations, questions and complaints.

Additional information is available on the city website. • Prepare an Annual Report to include the use of military equipment, any complaints received, any internal audits or other information about violations of Los Banos Police Department policy section 706, the cost of such use and other similar information. This webpage will be utilized for distribution of any updates to the above materials as well as the Annual Report. The first Annual Report was distributed on or around May, 2023, and the second Annual Report was completed in May of 2024.

Note: Los Banos Police Department does not utilize, any equipment procured from the United States Department of Defense through the Law Enforcement support program (also known as the 1028 or the 1033 program).

Public input regarding AB 481
As required for transparency, the Los Banos Police Department has uploaded multiple written documents on this website 30-days prior to a public meeting to meet the requirements of AB 481.

In compliance with Assembly Bill 481, the Los Banos Police Department presented to city council on May 18, 2022, who adopted an ordinance authorizing the continued use and acquisition of Military Equipment identified in AB 481. Complete agenda packets with backup reports for City Council Meetings are available online. 3 274
Inventory/Cost by Equipment Type

1. Unmanned Arial Vehicles ( Category 1)
a. Description, quantity, capabilities, and purchase cost:

The Unmanned Aerial Systems in operation by the Los Banos Police Department are:

1. 2.

3. 4.

5. Matrice 30- Thermal ($16,898.83)
DJI phantom pro-4 (Da-Jiang Innovations) ($2500)
DJI Phantom 3 Standard- ($800)
3 (DJI) Mavic Mini ($420.00)
1 DJI (Avata2) ($1,303.91)
The UAS (Unmanned Area] Systems) are all commercial/consumer-grade UAS commonly used by construction and utility companies for the inspection of buildings, power lines, windmills and other infrastructure, The UAS is a battery powered remote operated device. The controller allows the pilot to control the UAS as well as view live video produced by the onboard camera system the drone is equipped with. Flight time for each battery is approximately 25-30 minutes depending on weather and flight conditions. Drones have been proven to be useful by public safety agencies to conduct pre-operational surveillance, search and rescue missions, and tactical situations where enhancing the view point reduces effect of law enforcement and fire personnel. The Department is currently in the test and evaluation phase of another commercial grade UAS. b. Purpose:

To be deployed when the view would be enhanced to assist officers or incident commanders with the following situations, which include but are not limited to:

I. Major collision investigation
II. Search for missing/wanted persons
III. Natural disaster management
IV. Crime scene photography
V. Tactical or other public safety and life preservation missions VI. In response to specific requests from local, state or federal fire authorities for fire response and/or prevention
c. Authorized Use:

Only assigned operators who have completed the required training shall be permitted to operate the UA V during approved missions. All other applicable LBPD Policies remain in effect, to include but not limited to, LBPD Policy 311- Search and Seizure, LBPD Policy 316- Missing Persons, LBPD Policy 606- Unmanned Arial System Operations and LBPD Policy 703- Vehicle Use. 4 275
d. Expected Lifespan:
5 Years
e. Fiscal Impact:

Annual maintenance cost of approximately $1,000

2. Command and Control Vehicles (Category 5)
a. Description, quantity, capabilities, and purchase cost:
2011 Bumper pull trailer with a custom interior equipped with electrical supply, generator power source, seating and workspace. The interior is climate controlled and lighted by several recessed florescent lighting fixtures. The rear portion of the trailer is equipped with a cargo-equipment and supply storage area. The Trailer is used on critical incidents to provide additional command and control as well as provide shelter, supply storage, and evidence storage. Approximate cost:
$15,000.00 funded through A VOID Grant- 2011.
b. Purpose
To be utilized for critical incident callouts.
c. Authorized Use
The Command Post Trailer is used by officers and staff who have been properly trained in the safe handling of the vehicle. The driver of the vehicle shall have a California driver license. All other applicable LBPD policies remain in effect to include, but not limited to, LBPD 703- Vehicle use, LBPD Policy- 802- Property and Evidence.
d. Expected Lifespan:
20 Years
e. Fiscal Impact
Annual maintenance cost of approximately $2,000.
5 276

3. Specialized Firearms and Ammunition (Equipment
Category 10)
a. Description, quantity, capabilities, and purchase cost:

1. The Carbine Rifle is a firearm capable of accurately stopping an armed subject at various distances. The Carbine Rifle is a lightweight, air-cooled, gas operated, magazine fed, shoulder fired weapon, designated for semiautomatic fire. The Carbine Rifle does not have an expiration and will need to be serviced or replaced if the Rifle fails or breaks. The .223/5.56 cartridge is used as a lethal option designed to stop a violent encounter.

The projectile is capable of penetrating soft body armor being worn by armed subjects. Colt Ar-15/ M4 Approximate Cost $15,000 Quantity-IS Windham Weaponry Rl lSFST-7 WWIS/AR-15 5.56 Quantity: 14 Cost; Approximately $13,934.68. Sons of Liberty, Gun Works- Model M4-89 Cost; Approximately $1,400 ( each).
ii. The Federal American Eagle .223-.62 grain FMJ is the Departments primary training and duty ammunition. Cost: $3,956.20 Quantity: 10,100 Rounds.
111. Remington UMC .223 62 grain CTFB is the Departments secondary training and duty ammunition. Cost: 1,033.80 Quantity: 2800. b. Purpose:

To be used as precision weapons to address a threat with more precision and/or greater distances than a handgun, if present and feasible. c. Authorized Use:

Only members that are POST certified are issued a rifle. All other applicable LBPD policies remain in effect, to included but not limited to LBPD policy 300- Use of Force, LBPD Policy 306- Firearms Training and Qualifications. d. Expected Lifespan:
i. Carbine Rifle- No expiration
ii. Federal American Eagle .223, 62 grain FMJ- No expiration iii. Remington UMC .223 62 grain CTFB- No expiration
e. Fiscal Impact:

1. Carbine Rifle- Annual Cost between $0.00- $10,000.

11. Federal American Eagle .223- 62 grain FMJ- Annual cost between $0.00 to $5,000.
111. Remington UMC .223 62 grain CTFB- Annual cost between $0.00 to $5,000.
6 277

4. PepperBall Launcher (Category 12)
a. Description, quantity, capabilities, and purchase cost:

System that uses high pressure air to deliver Pelargonic Acid V anillylamide (PAV A) powder projectiles (similar to a paint ball delivery system). The System is capable oflaunching projectiles at a subject up to 60'. The System is capable of area saturation up to 160'. This is a non-lethal option to offer law enforcement officers to deliver chemical agents and kinetic energy impacts to subjects in a potentially violent encounter. De-Escalation tool used to avoid further injuries or lethal options on a subject. Approximate Cost: $2,000.00 Quantity: 4

1. PepperBall Live Projectile: The basic PepperBall projectile contains 2% PAV A pepper powder, and is designed for direct impact and area saturation, especially in confined, interior spaces. Discharged from a PepperBall Launcher, the projectile has a velocity of280-350 FPS. The projectile has a direct impact of 60ft and an area saturation of 150=f. The projectile contains 0.5% PAV A powder .8230. Cost: $3,412.00 Quantity:
1500.
b. Purpose:

To limit the escalation of conflict where deployment of lethal force is prohibited or undesirable. Situations for use of the less lethal weapon systems may include but, are not limited to:

1. Self-destructive, dangerous and/or combative individuals. n. Riot/Crowd control and civil umest indecent
111. Circumstances where a tactical advantage can be obtained 1v. Potentially vicious animals
v. Training exercises or approved demonstrations
c. Authorized Use:

Only those officers who have been trained in the use of Pepper Ball launchers are authorized to use the PepperBall launchers. All other applicable LBPD Policies remain in effect, to included, but not limited to, LBPD Policy 300- Use of Force d. Expected Lifespan:
i. PepperBall Launcher: No expiration
ii. Live Projectile: 1 year
e. Fiscal Impact:
i. PepperBall Launcher: Annual cost between $0 anq $1,000. ii. Live Projectile: Annual cost between $0 and $2,000. 7 278

5. Projectile Launch platforms and associated munitions ( Category 14)
a. Description, quantity, capabilities, and purchase cost:

Lewis Machine & Tool (LMT) Launcher approximate Cost: 4,000. Quantity: 3.

The LMT 40mm launcher is not a firearm, but a less-lethal system that uses smokeless powder to deliver 40mm projectiles from a safe distance. The LessLethal launcher is capable of launching 40mm munitions at a subject up to 25 yards. The Less-Lethal launcher is a single launcher, which allows the officer to assess after every spent munition. Less-Lethal launcher does not have an expiration and will need to be serviced or replaced with the launcher fails or is no longer serviceable. The 40mm munition is a direct impact spin stabilized smokeless sponge munition. The sponge baton munition is used as Less-Lethal weapon designed to de-escalate a potentially violent encounter. Approximate Cost: $3,818 Quantity: 200
b. Purpose:

To limit the escalation of conflict where lethal force is prohibited or undesirable. c. Authorized Use:

Situations for use of the less-lethal weapon system may include but are not limited to:

1. Self-destructive, dangerous and/or combative individuals

11. Riot/crowd control and civil unrest incidents.
m. Circumstances where a tactical advantage can be obtained. 1v. Potentially vicious animals.
v. Training exercises or approved demonstrations.

All other applicable LBPD Policies remain in effect, to include, but not limited to, LBPD Policy 300- Use of force.
d. Expected Lifespan:
i. 40mm Launcher- No expiration
e. Fiscal Impact:
i. 40mm Sponge Round: Annual cost between $0 and $400.
8 279

6. Projectile Launch platforms and associated munitions (Category 14)
a. Description, quantity, capabilities, and purchase cost:
i. Remington 870 Less-Lethal Orange colored shotgun, cost $950 each, quantity: 10. Used to deploy less-lethal impact munitions.

The stock and pump grip of the shotgun are bright orange in color to indicate it's use as less lethal.
ii. 12-gauge Safariland drag stabilized beanbag round, #3027, approximate cost: $500, quantity 200. A less-lethal 12-gauge shotgun round that launches a ballistic fiber bag filled with 40 grams of lead shot. The effective range of this munition is at least 20 feet up to 75 feet from the target. It does not require a minimum range to ''unfold" or "stabilize" and accuracy is relative to the shotgun, barrel length, environmental conditions, and the operator.
b. Purpose
To limit the escalation of conflict where employment oflethal force is prohibited or undesirable.
c. Authorized Use
Situations for use of the less lethal weapon systems may include, but are not limited to:
i. Self-destructive, dangerous and/or combative individuals. ii. Riot/crowd control and civil unrest incidents.
iii. Circumstances where a tactical advantage can be obtained. iv. Potentially vicious animals.
v. Training exercises or approved demonstrations.

All other applicable LBPD Policies remain in effect, to include, but not limited to, LBPD Policy 300- Use of force.
d. Expected Lifespan

1. Remington 870 less
Lethal shotgun - 25
years

11. Safari land drag
stabilized round-No
expiration
e. Fiscal Impact

1. Beanbag Round: Annual cost between $0 and $500.
9 280
Acquisitions/ Fiscal Impact
Between June ,2023 and July, 2025 The Los Banos Police Department acquired the following Military Equipment:
• Category# 1- Unmanned Arial Vehicles/Systems.
o 1 DJI Avata 2 ($1,303.91)
• Category# 5- Command and Control Vehicles
o No New Acquisitions
• Category# 10- Specialized Firearms and Ammunition.
o Two Carbine Rifle Platforms (Sons of Liberty, Gun WorksModel M4-89) ($1,400 Each) o Suppresser SKM ($550 Each)
o Ammunition
■ ARMSCOR 223 62GR FMJ 1000 RD Case-$460.00
• 25 Cases ($11,500 Total Expended)
• Category# 12- PepperBal Launcher.
o No new acquisitions
• Category# 14- Projectile launch platforms and associated munitions. o No new acquisitions.
• Future Acquisitions.
o The department will continue to acquire equipment outlined in this assembly bill by use of the general fund, grant funding, and any other funding source available to staff. The amount of future acquisitions will vary upon the needs
associated with each listed item. The general assumptions for future acquisitions are consistent with the itemized lists contained in this report.
10 281
Internal Audits
The Los Banos Police Department continues to remain transparent. We publicize our policy, training plan and have made our complaint forms available on our website.

The Operation Commander has conducted periodic audits during this report period, the audits have consisted of monitoring each reported use of force to determine if military equipment was used, as well as reviewing each public complaint to determine if there were any reported complaints or comments surrounding the use or acquisition of equipment identified in AB 481 as military equipment.

During this reporting period, there were zero ( o) community complaints surrounding the use or acquisition of military equipment. The deployments of military equipment are documented under the ''usage" heading in this report.
11 282
Usage
• Category # 1
o During this reporting period there have been over 100 missions flown by our trained UAS pilots the missions range from storm water evaluations, to tactical operations locating wanted subjects. (Equipment Category #1) • Category # 5
o During this reporting period the mobile command post has been deployed roughly 5 times ranging from providing remote command posts for critical incidents. (Equipment Category # 5)
• Category # 10
o During this reporting period there were one applications of the items in LBPD inventory for (Equipment Category# 10). The department purchased additional ammunition after training consumption. The department also purchased two additional Patrol Carbine Rifles due to the need by the LBPD officers assigned to the Merced County Sheriff's Office Special Weapons and Tactics Team.
• Category # 12
o During this reporting period there were no applications of the items in LBPD inventory for (Equipment Category# 12).
• Category# 14
Findings:
o During this reporting period there were no applications of the items in LBPD inventory for (Equipment Category# 14). The department purchased additional ammunition after training consumption.

The Los Banos Police Department had zero (0) citizen complaints involving use of military equipment.

The Los Banos Police Department had zero (1) applications of force involving military equipment. This application was a result of an Officer involved critical incident.

There have been zero (0) reported violations of the military equipment use policy. 12 283
Conclusion
The Los Banos Police Department will continue to revise its practices to ensure complacence with the evolving legal requirements and community expectations.

This report complies with the requirements of Government Code Section 7072.

1. A summary of how the military equipment was used and the purpose of its use.

2. A summary of any complaints or concerns received concerning the military equipment.

3. The results of any internal audits, any information about the violations of the military equipment use policy, and any actions taken in response.

4. The total annual cost for each type of military equipment, including acquisition, personnel, training, transportation, maintenance, storage, upgrade, and other ongoing costs, and from what source funds will be provided for the military equipment in the calendar year following submission of the annual military equipment report.

5. The quantity possessed for each type of military equipment.

6. If the law enforcement agency intends to acquire additional military equipment in the next year, the quantity sought for each type of military equipment.

7. Within 30 days of submitting and publicly releasing an annual military equipment report pursuant to this section, the law enforcement agency shall hold at least one wellpublicized and conveniently located community engagement meeting, at which the general public may discuss and ask questions regarding the annual military equipment report and the law enforcement agency's funding, acquisition, or use of military equipment.
13 284
AB481
Mj~jtar\l t(~1~J~lF;~rte[nt 10,lers~gr~t
Community Meeting and Council Presentation
discussing Military Equipment Funding, Acquisition
and Use. Facilitated by Police Commander Justin
Melden, August 6, 2025.
285
.Agenda AB 481 Military Equipment
How AB 481 defines military equipment requirements
Equipment Necessity
Why equipment is needed for operations
Funding and Acquisition
How equipment is funded, acquired and used
LBPD Equipment and Community
Inventory overview and community engagement activities
286
287
AB 481 Requirements and Reporting
Initial Approval
Requires approval for continued use of pre-2022
equipment
Must obtain city council authorization for
equipment
Establishes oversight process for military
equipment acquisition
•
;< • , . .,_ ,
; 't .. -.• ~r·t • ·::-. 11' ~~" ... ,, l,.,. ..• ,. [' -~· , ,.,, c: t. ·I J . ,, I i ..... ~ -:. ~ ! J ~ -~.. .J. /.._,.1 • . ~. I ~ ':;:.

First annual report completed in May 2023
Documents equipment usage and maintenance
costs
Includes internal audits and community feedback
288
How Equipment Can Be Funded
Citv Funding
~ City of Los Banos General Fund
* City of Los Banos Capital
Improvement Plan
• Reallocation of City Resources
" Asset Forfeiture Funding
,~-.. ~ ,... t ~,, -_• .. ,,.._, r ·~~ n i ! t:- c ~ ,c J II ,~ J , ,.. ._. \._;• V. J , , 'L. -• " Local Government Grants
" State Agency Grants
" Federal Government Grants
" Law Enforcement Specific
Programs
·r·v::;,~,~.£0,.. p .... l'i\rY;,·:1:n,..,.c !~IJ_,J.,_~, l'dl.:'..,C,.i,_;- ....., 0 Department of Defense 1208
Program
Department of Defense 1033
Program
0 Note: LBPD does not use DoD
equipment through these transfer
programs
289
LBPD Equipment Inventory
Equipment Category/ Item
Funding Source In Use Since
1 - Unmanned Aircraft Grant/Asset Forfeiture/General Fund 2017 5 - Mobile Command Post Trailer Grant Funding 2011
10 - Rifles and Bullets Grant/Asset Forfeiture/General Fund 2003 12 - Pepper Ball Grant/Asset Forfeiture/General Fund 2004 14 - Less Lethal Platforms Grant/Asset Forfeiture/General Fund 2014 Curren·~ r,,11i!itary Ecn.1\n;1,c!7t ii~ Use:
' '
Los Banos Police Department maintains essential equipment for public safety operations. All items have been acquired through approved funding sources and are used in accordance with department policies and training protocols established for officer and community safety. 290
In Person
Attendance
Public Comment
AB 481 requires public input
opportunities for community
engagement and feedback on
military equipment use.
► Attend city council meetings in person
► Participate during designated public
comment periods
► Submit written comments to city clerk
Cab~E: Ti\/ 'le,~~ 1 T~ ~ i10 11 ,~,., ~)1 1, ~-~ I/..,.; 11i._~ Channel95 City Channel
Media Access
Multiple viewing options ensure
broad community access to
meetings and presentation materials
for transparency.
► Watch live on Comcast Cable Channel 95
► View recordings on City's official You Tube
channel
► Access meeting archives and documents
online
Orn~rinie
Comments
Feedback Methods
Various ways for community
members to provide input and
engage with the police department
on equipment policies.
► Speak during public comment at
meetings
► Submit comments through city website
portal
► Contact police department directly with
concerns
291
292
Questions and Comments
Los Banos Poiice Deoartment Contact lnforrnat;on
Commander Justin Melden, 1111 G Street, Los Banos, CA
93635. Email: [email protected] for questions, comments and concerns.
293

THIS PAGE IS INTENTIONALLY LEFT BLANK
294
TO:

FROM:

DATE:

LOsBanos
l the Crossroads o ,dif ornia
Agenda Staff Report
Mayor & City Council Members ----,7
Joe Heim, Parks and Recreation Director ~
August 6, 2025
TYPE OF REPORT: Agenda Item
SUBJECT: Third Amendment to Lease Agreement between the City of Los Banos and Marlene Pennington for the Ranchwood Park Facility located at 515 Stonewood Drive for the purpose of providing Pre-School and Child Care Services
Recommendation:

That the City Council adopt the Resolution authorizing the Interim City Manager to execute a Third Amendment to the Lease Agreement with Marlene Pennington for the Ranchwood Park Facility located at 515 Stonewood Drive for the purpose of providing pre-school and child care services.

Background:

The lease for the Ranchwood Park Facility, as amended by a Second Amendment, expired on May 31, 2025. With the term concluded, the City initiated preparation of a Third Amendment to allow for continued use of the building for pre-school and child care services. Marlene Pennington, of Pennington's Little Friends, has operated her child care business in Los Banos for over 43 years and has used the Ranchwood facility since 2010.

The facility is leased exclusively to Pennington's School and is not available for community access or rentals. The lessee pays for utilities, including PG&E and telephone service. However, due to complications with the current water line configuration, Pennington's has not been billed for water service. City staff is working with the Utilities Division to resolve this by installing a third dedicated water meter for ITEM 11
295
the building. Currently, two 2-inch meters serve the site; the new meter would separately track water use for the facility.

This item was continued from the July 16, 2025 City Council meeting to allow for additional discussion regarding the building's use as a child care facility rather than a general community building.

Discussion:

A Third Amendment to Lease Agreement between the City and Marlene Pennington has been prepared for Council consideration. The following are the main points:

1. Term: Two years beginning August 1, 2025

2. Rent: $2,500/month for Year 1; $2,600/month for Year 2

3. Conditions: All terms of the original lease remain in effect unless specifically amended. Lessee remains responsible for required licenses, permits, insurance, and compliance.

The Year 1 rental rate reflects a 20.83% increase from the previous lease amount. Year 2 includes a 4% increase over Year 1. The new rate of $2,500/month is based on a $1.00 per square foot valuation for the building. While there are no direct local lease comparisons for child care facilities in Los Banos, commercial lease rates along Downtown and Pacheco Boulevard average approximately $1.62 per square foot.

The Ranchwood Facility is not currently used as a community rental facility. For comparison, the City's College Greens building (1815 Scripps Dr.) is a dedicated community rental site and hosts public activities such as birthday parties, celebrations of life, and Quinceafieras. It has become a popular weekend rental venue. The following is a summary of College Greens revenue:
• FY23: $24,275 total revenue; $18,250 from 55 weekend rentals • FY24: $23,600 total revenue; $19,050 from 56 weekend rentals • FY25: $40,900 total revenue; $19,875 from 59 weekend rentals The increase in FY25 is largely due to expanded weekday use by groups such as Boys & Girls Club and legal assistance organizations. Each rental typically requires a minimum of 2 hours of staff overtime for opening, closing, restocking, and cleaning.

In contrast, Pennington's is responsible for custodial services and handles all opening and closing of the Ranchwood Building. Parks staff provides maintenance support as needed, such as plumbing or HVAC repairs. The facility is not available for public rentals, as it is exclusively used for child care operations. Pennington's offers affordable day care services and accepts subsidies through child care assistance programs, serving many low-income families in the community.

Staff recommends proceeding with the two-year extension as the facility continues to serve a critical role for working families in Los Banos. Efforts are underway to resolve the utility billing issue, and the revenue generated through the lease contributes to the General Fund.
296
Fiscal Impact:
$61,200.00 will be received into the General Fund as a result of this two year Third Amendment to Lease Agreement.

Reviewed by:
aryrizzee,lnterim City Manager
Attachments:

Resolution
Third Amendment to Lease Agreement
Second Amendment to Lease Agreement
First Amendment to Lease Agreement
Lease Agreement
297
RESOLUTION NO. --

A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF LOS BANOS AUTHORIZING ENTERING

INTO A THIRD AMENDMENT TO LEASE

AGREEMENT BETWEEN THE CITY OF LOS

BANOS AND MARLENE PENNINGTON FOR

RENTAL OF THE RANCHWOOD PARK FACILITY
WHEREAS, Marlene Pennington has requested the City of Los Banos enter into a Third Amendment To Lease Agreement for rental of the Ranchwood Park Facility for child care use; and
WHEREAS, the term of the Third Amendment To Lease Agreement is two years, commencing on August 1, 2025 and ending on July 31, 2027; and WHEREAS, commencing on September 1, 2025, Marlene Pennington ·agrees to pay $2,500 per month during the first year of Third Amendment To Lease Agreement, and to pay $2,600 per month during the second year, as described in the terms of Third Amendment To Lease Agreement; and
WHEREAS, said Third Amendment To Lease Agreement, as presented, has been prepared by the City Attorney of the City of Los Banos; and WHEREAS, all the terms and conditions of the Lease Agreement remain in full effect except as expressly amended by the Third Amendment To Lease Agreement; and
WHEREAS, the City Council of the City of Los Banos designates the Interim City Manager to sign and execute the Third Amendment To Lease Agreement.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Los Banos does hereby approve the Third Amendment To Lease Agreement between the City of Los Banos and Marlene Pennington, and the designation of the Interim City Manager to sign and execute the Third Amendment To Lease Agreement as presented.

The foregoing Resolution was introduced at a regular meeting of the City Council of the City of Los Banos held on the 6th day of August 2025, 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:
1 298
APPROVED:

Michael S. Amabile, Mayor
ATTEST:

Lucille L. Mallonee, City Clerk
2 299
Recording Requested By:

City of Los Banos
And When Recorded Mail to:

Lucille Mallonee, City Clerk
City of Los Banos
520 J Street
Los Banos, CA 93635
Exempt from Recording Fees
Pursuant to Gov't Cd 6103
APN: a ortion of 082-343-044
Space above this line for Recorder's use.

THIRD AMENDMENT TO LEASE AGREEMENT BETWEEN

THE CITY OF LOS BANOS AS LESSOR AND MARLENE PENNINGTON

AS LESSEE
[Ranchwood Park Facility]
THIS THIRD AMENDMENT TO LEASE AGREEMENT is entered into and effective on June 1, 2025 by and between the CITY OF LOS BANOS, a California municipal corporation, (referred to in this lease as "Lessor") and MARLENE PENNINGTON, an individual (referred to in this lease as "Lessee").

RECITALS
WHEREAS, the parties entered into a lease agreement, dated for reference purposes as of March 17, 2010 (the "Lease") as amended by First Amendment to Lease Agreement dated March 13, 2015 (the "First Amendment") as amended by Second Amendment to Lease Agreement dated May 29,2020 (the "Second Amendment") in which Lessor leased to Lessee the real property (indoor and outdoor space) located at 515 Stonewood Drive in the City of Los Banos, County of Merced, State of California, more particularly described in Exhibit A ("the Premises"); and
WHEREAS, the Second Amendment extended the term of the Lease for a period of five years to expiring on May 31, 2025; and
WHEREAS, the parties wish to amend the Lease as herein set forth.

NOW THEREFORE, for good and valuable consideration as hereinafter set forth, the sufficiency of which is hereby acknowledged, the parties agree to amend the Lease as follows:
1 300

1. Term. The term of the Lease shall be extended an additional two (2) years commencing on June 1, 2025 and ending on May 31, 2027 ("Third Extended Term"), unless terminated earlier pursuant to the provisions of the Lease.

2. Rent. Lessee agrees to pay to Lessor during the third extended term of the Lease, rent as follows:
(1) $2,500.00 per month on the first day of each and every month, commencing on the first day of June, 2025, during the first year of the third extended term of this lease. (2) $2,600.00 per month on the first day of each and every month, commencing on the first day of June, 2026, during the second year of the third extended term of this lease.

In the event rent is not paid within 5 days after due date, Lessee agrees to pay a late charge of $100.00, plus interest at the rate of 10% per annum on the delinquent amount. Lessee further agrees to pay $50.00 for each dishonored bank check. The late charge period is not a grace period, and Lessor is entitled to make written demand for any rent if not paid when due.

3. Indemnification. Lessee shall defend, indemnify, and hold harmless Lessor, its principals, officers, employees, agents, and volunteers from and against any claims, losses, injuries, suits, or judgments and from any and all liability for any and all claims, losses, injuries, suits, or judgments filed or brought by any and all persons (including, without limitation, attorney's fees, disbursements and court costs) because of, arising, from or resulting from, or in connection with the conduct by Lessee of any program, activity or service in, on, or about the Premises, or because of or arising from any negligent and or willful act or omission, its principals, officers, agents, employees, volunteers or subcontractors, or in any way connected with the Premises or with any improvements or personal property on the Premises, or some condition of the Premises or some building or improvement on the Premises except when caused by the sole negligence or willful misconduct of Lessor.

4. Insurance. Lessee shall, at its own cost and expense, procure and maintain during the third extended term of this lease public liability insurance and premises damage insurance insuring Lessor against loss or liability caused by or connected with Lessee's occupation and use of the Premises under this lease in amounts not less than:
(a) General Liability. Lessee shall maintain general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than two million dollars ($2,000,000) per occurrence, four million dollars ($4,000,000) general aggregate, for bodily injury, personal injury, and property damage, including without limitation, blanket contractual liability. Lessee, general liability policies shall be primary and shall not seek contribution from the Lessor's coverage, and be endorsed using Insurance Services Office form CG 20 10 to provide that Lessor and its officers, officials, employees, and agents shall be additional insureds under such policies.
(b) Auto Liability. Lessee shall provide auto liability coverage for owned, non-owned, and hired autos using ISO Business Auto Coverage form CA 00 01, or the exact equivalent, with 2 301
a limit of no less than one million dollars ($1,000,000) per accident. If Lessee owns no vehicles, this requirement may be met through a non-owned auto endorsement to the CGL policy. (c) Workers' Compensation. Lessee shall maintain Workers' Compensation Insurance (Statutory Limits) and Employer's Liability Insurance with limits of at least one million dollars ($1,000,000). Lessee shall submit to Lessor, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of Lessor, its officers, agents, employees, and volunteers.

The insurance required under this section shall be issued by a responsible insurance company or companies authorized to do business in California and shall be in a form reasonably satisfactory to Lessor. Lessee shall within 10 days of the date of this lease, deposit with Lessor a certificate showing that insurance to be in full force and effect.

Each of the insurance policies shall be in a form reasonably satisfactory to Lessor and shall carry an endorsement that, before changing or canceling any policy, the issuing insurance company shall give Lessor at least 30 days' prior written notice. Duplicate originals or certificates of all such insurance policies shall be delivered to Lessor.

5. No Further Amendments: Conflicts. All the terms and conditions of the Lease remain in full force and effect except as expressly amended herein. The Lease as amended by this Third Amendment constitutes the entire agreement between Lessor and Lessee and may not be modified except by an instrument in writing duly executed by the parties hereto. In the event of any conflict between the terms of the Lease and the terms of this Third Amendment, the terms of this Third Amendment shall control.

6. Authority. Each individual executing this Amendment on behalf of a party hereto represents and warrants that such party has full right and authority to execute and deliver this Amendment and that each person signing on behalf of such party is authorized to do so.

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IN WITNESS THEREOF, this Third Amendment to Lease was executed by the parties thereto on the dates set forth herein.

LESSOR:

CITY OF LOS BANOS, a municipal corporation
By: _________ _
Michael Amabile, Mayor
ATTEST:

Lucille Mallonee, City Clerk
APPROVED AS TO FORM:

William A. Vaughn
City Attorney
LESSEE:

Marlene Pennington
Dated:

Dated:

Dated:
[SIGNATURES MUST BE NOTARIZED]
4 303

EXHIBIT A

ACKNOWLEDGMENT
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document, to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

ST ATE OF CALIFORNIA )
) .

COUNTY OF MERCED )
On --- --------- before me, _ ___________ _, a Notary Public, personally appeared _____________________________ _, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signatures(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature _ _____________ _ (Seal)
6 305

STATE OF CALIFORNIA )
) . COUNTY OF MERCED )
On ___________ , before me, _____________ , a Notary Public, personally appeared ____________________________ _ _, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signatures(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature ______________ _ (Seal)
7 306
Recording Requested By:

City of Los Banos
And When Recorded Mail to:

SECOND AMENDMENT TO LEASE AGREEMENT BETWEEN

THE CITY OF LOS BANOS AS LESSOR AND MARLENE PENNINGTON

AS LESSEE
[Ranchwood Park Facility]
THIS SECOND AMENDMENT TO LEASE AGREEMENT is entered into and effective on June 1, 2020 by and between the CITY OF LOS BANOS, a California municipal corporation, (referred to in this lease as "Lessor") and MARLENE PENNINGTON, an individual (referred to in this lease as "Lessee").

RECITALS
WHEREAS, the parties entered into a lease agreement, dated for reference purposes as of March 17, 2010 (the "Lease") as amended by First Amendment to Lease Agreement dated March 13, 2015 (the "First Amendment") in which Lessor leased to Lessee the real property (indoor and outdoor space) located at 515 Stonewood Drive in the City of Los Banos, County of Merced, State of California, more particularly described in Exhibit A ("the Premises"); and WHEREAS, the First Amendment extended the term of the Lease for a period of five years to expiring on March 31 , 2020; and
WHEREAS, the parties wish to amend the Lease as herein set forth.

NOW THEREFORE, for good and valuable consideration as hereinafter set forth, the sufficiency of which is hereby acknowledged, the parties agree to amend the Lease as follows:

1. Term. The term of the Lease shall be extended an additional five years commencing on June 1, 2020 and ending on May 31, 2025 ("Second Extended Term"), unless terminated earlier pursuant to the provisions of the Lease.
307

2. Rent. Lessee agrees to pay to Lessor during the second extended term of the Lease, rent as follows:
(1) $1,913.00 per month on the first day of each and every month, commencing on the first day of June, 2020, during the first year of the second extended term of this lease. (2) $1,951.00 per month on the first day of each and every month, commencing on the first day of June, 2021, during the second year of the second extended term of this lease. (3) $1,990.00 per month on the first day of each and every month, commencing on the first day of June, 2022, during the third year of the second extended term of this lease. (4) $2,029.00 per month on the first day of each and every month, commencing on the first day of June, 2023, during the fourth year of the second extended term of this lease. (5) $2,069.00 per month on the first day of each and every month, commencing on the first day of June, 2024, during the fifth year of the second extended term of this lease.

4. Insurance. Lessee shall, at its own cost and expense, procure and maintain during the second extended term of this lease public liability insurance and premises damage insurance insuring Lessor against loss or liability caused by or connected with Lessee's occupation and use of the Premises under this lease in amounts not less than:
(a) General Liability. Lessee shall maintain general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than one million dollars ($1,000,000) per occurrence, two million dollars ($2,000,000) general aggregate, for bodily injury, personal injury, and property damage, including without limitation, blanket contractual liability. Lessee, general liability policies shall be primary and shall not seek 308
contribution from the Lessor's coverage, and be endorsed using Insurance Services Office form CG 20 10 to provide that Lessor and its officers, officials, employees, and agents shall be additional insureds under such policies.
(b) Auto Liability. Lessee shall provide auto liability coverage for owned, non-owned, and hired autos using ISO Business Auto Coverage form CA 00 01, or the exact equivalent, with a limit of no less than one million dollars ($1,000,000) per accident. If Lessee owns no vehicles, this requirement may be met through a non-owned auto endorsement to the CGL policy. (c) Workers' Compensation. Lessee shall maintain Workers' Compensation Insurance (Statutory Limits) and Employer's Liability Insurance with limits of at least one million dollars ($1,000,000). Lessee shall submit to Lessor, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of Lessor, its officers, agents, employees, and volunteers.

5. No Further Amendments: Conflicts. All the terms and conditions of the Lease remain in full force and effect except as expressly amended herein. The Lease as amended by this Second Amendment constitutes the entire agreement between Lessor and Lessee and may not be modified except by an instrument in writing duly executed by the parties hereto. In the event of any conflict between the terms of the Lease and the terms of this Second Amendment, the terms of this Second Amendment shall control.

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IN WITNESS THEREOF, this Second Amendment to Lease was executed by the parties thereto on the dates set forth herein.

LESSOR:

CITY OF LOS BANOS, a municipal corporation
By: _ _ _______ _
Michael Villalta, Mayor
ATTEST:

Lucille Mallonee, City Clerk
APPROVED AS TO FORM:

William A. Vaughn
City Attorney
LESSEE:

Marlene Pennington
Dated:

Dated:

Dated:
[SIGNATURES MUST BE NOTARIZED]
310

EXHIBIT A

PROPERTY DESRIPTION
The real property and improvements commonly known as the Ranchwood Park Facility located at 515 Stonewood Drive, in the City of Los Banos, County of Merced, California, ("the Premises") consisting of approximately 2500 sq.ft.+/- of indoor space and approximately 5580 sq.ft.+/- of outdoor space (consisting of a fenced in turf area, and a playground area with playground equipment.).
a portion of APN 082-343-044
311
A notary public or other officer completing this
ce11ificate verifies only the identity of the
individual who signed the document to which this
certificate is attached, and not the truthfulness,
accuracy, or validity of that document.

STATE OF CALIFORNIA )
) S,S.

COUNTY OF MERCED )
On ------------~ before me,-------------~ a Notary
Public, personally appeared
who
proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signatures(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature ____ ___________ _ (Seal)
312
A notary public or other officer completing this
certificate verifies only the identity of the
individual who signed the document to which this
certificate is attached. and not the truthfulness.
accuracy, or validity of that document.

ST ATE OF CALIFORNIA )
) S.S.

COUNTY OF MERCED )
On _ ___________ _, before me, ________ _____ _, a Notary Public, personally appeared
who
proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signatures(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature _________ ______ _ (Seal)
313
Recording Requested By:

City of Los Banos
And When Recorded Mail to:

Lucille Mallonee, City Clerk
City of Los Banos
520J Street
Los Banos, CA 9363S
Exempt from Recording Fees
Pursuant to Gov't Cd 6103
APN: a ortion of 082--343-044
Reoorded In Olllclal Records, Merced County
Barbara J Levey
Merced County Clerk - Recorder
P Public
Doc#: 2015-011391
1111 IIIIU 1111111 IIH
Space above this line for Recorder's use.

F1RSTAMENDMENTTOLEASEAGREEMENTBETWEEN
THles: 1
Fees
Taxes
Other
PAID

THE CITY OF LOS BANOS AS LESSOR AND MARLENE PENNINGTON
ASL~EE
[Ranchwood Park Facility]
THIS FIRST AMENDMENT TO LEASE AGREEMENT is entered into on March !1, 2015 by and between the CITY OF LOS BANOS, a California municipal corporation, (referred to in this lease as "Lessor") and MARLENE PENNINGTON, an individual (referred to in this lease as "Lessee"),

RECITALS
WHEREAS, the parties entered into a lease agreement, dated for reference purposes as of March 17, 2010 (the "Lease") in which Lessor leased to Lessee the real property (indoor and outdoor space) located at 515 Stonewood Drive in the City of Los Banos, County of Merced, State of California, more particularly described in Exhibit A ("the Premises"); and WHEREAS, the term of the Lease was for a period of five years to expire on March 31, 2015;and
WHEREAS, the parties wish to amend the Lease as herein set forth.

NOW THEREFORE, for good and valuable consideration as hereinafter set forth, the sufficiency of which is hereby acknowledged, the parties agree to amend the Lease as follows:

1. Term. The tenn of the Lease shall be extended an additional five years commencing on April I, 2015 and ending on March 31, 2020 ("Extended Term"), unless tenninated earlier pursuant to the provisions of the Lease.
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314

2. Rent. Lessee agrees to pay to Lessor during the extended tenn of this lease rent as follows:
(1) $1,735.00 per month on the first day of each and every month, commencing on the first day of April, 2015, during the first year of the extended term of this lease. (2) $1,769.00 per month on the first day of each and every month, commencing on the first day of April, 2016, during the second year of the extended term of this lease. (3) $1,804.00 per month on the first day of each and every month, commencing on the first day of April, 2017, during the third year of the extended term of this lease. (4) $1,840.00 per month on the frrst day of each and every month, commencing on the first day of April, 2018, during the fourth year of the extended term of this lease. (5) $1,876.00 per month on the first day of each and every month, commencing on the first day of April, 2019, during the fifth year of the extended tenn of this lease.

3. No Further Amendments; Conflicts. All the terms and conditions of the Lease remain in full force and effect except as expressly amended herein. The Lease as amended by this Amendment constitutes the entire agreement between Lessor and Lessee and may not be modified except by an instrument in writing duly executed by the parties hereto. In the event of any conflict between the terms of the Lease and the tenns of this First Amendment, the tenns of this First Amendment shall control.

4. Authority. Each individual executing this Amendment on behalf of a party hereto represents and warrants that such party has full right and authority to execute and deliver this Amendment and that each person signing on behalf of such party is authorized to do so.

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IN WITNESS THEREOF, this First Amendment to Lease was executed by the parties thereto on the date set forth above.

LESSOR:

CITY OF LOS BANOS, a municipal
'-£~-t.

Lucille Mallonee, City
~ Clerk
APPROVED AS TO FORM:

City Attorney
\
LESSEE:
[SIGNATURES MUST BE NOTARIZED)
316
fillliIBITA

State of California }
}
County of Merced }
On this 13th day of March , 2015 before me, Lucille L. Mallonee , a Notary Public in and for said State, personally appeared Michael Gerard Villalta , who proved on the basis of satisfactory evidence to be the personts1 whose name(&) islafe subscribed to the within instrument and acknowledged to me that _IJQ/she/they executed the same in his/her/their authorized capacity~, and that by his/her/their signature~ on the instrument the person~. or the entity upon behalf of which the person~ acted, executed this instrument.

I certify under PENAL TY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature
i ~a._,
of Notary
f · ~ Public
LUCILLE L. MALLONEE
Commission fl 1929960
~ . -• Notary Public - California I z - Merced County ? J. u ~ c o ,Mi t 0 E'Ui E•eres : PJ t
1 -.2i1 ~l
(Notary Seal)
318

State of California }
}
County of Merced }
On this 17th day of March , 2015 before me, Lucille L. Mallonee , a Notary Public in and for said State, personally appeared Marlene Louise Pennington , who proved on the basis of satisfactory evidence to be the person(st whose name{st islafe subscribed to the within instrument and acknowledged to me that t:lelshe/they executed the same in RistherltAeff: authorized capacityfies}, and that by his/her/their signature(st on the instrument the personfst, or the entity upon behalf of which the personfsj acted, executed this instrument.

I certify under PENAL TY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature
£;~,()~
of Notary
-e.

Public
~ a LUCILLE L. MALLONEE
Commission# 1929960
.. Nolary Public - California f
Merced County ...

M Comm.E Ires A r21.2015
(Notary Seal)
319
RESOLUTION NO. 5641

A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF LOS BANOS AUTHORIZING ENTERING

INTO A FIRST AMENDMENT TO LEASE

AGREEMENT BETWEEN THE CITY OF LOS

BANOS AND MARLENE PENNINGTON FOR

RENTAL OF THE RANCHWOOD PARK FACILITY
WHEREAS, Marlene Pennington has requested the City of Los Banos enter into a First Amendment To Lease Agreement for rental of the Ranchwood Park Facility for child care use; and
WHEREAS, the term of the First Amendment To Lease Agreement is five years, commencing on April 1, 2015 and ending on March 31, 2020; and WHEREAS, commencing on April 1, 2015, Marlene Pennington agrees to pay $1,735.00 per month during the first year of First Amendment To Lease Agreement, and to a 2% increase each subsequent year, as described in the terms of First Amendment To Lease Agreement; and
WHEREAS, said First Amendment To Lease Agreement, as presented, has been prepared by the City Attorney of the City of Los Banos: and WHEREAS. all the terms and conditions of the Lease Agreement remain in full effect except as expressly amended by the First Amendment to Lease Agreement; and WHEREAS, the City Council of the City of Los Banos designates the Mayor to sign and execute the First Amendment to Lease Agreement.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Los Banos does hereby approve the First Amendment to Lease Agreement between the City of Los Banos and Marlene Pennington, and the designation of the Mayor to sign and execute the First Amendment To Lease Agreement as presented.

The foregoing Resolution was introduced at a regular meeting of the City Council of the City of Los Banos held on the 4th day of March 2015, by Council Member Faria who moved its adoption, which motion was duly seconded by Council Member Silveira and the Resolution adopted by the following vote:

AYES:

NOES:

ABSENT:

ATTEST:

Council Members Faria, Lewis, Silveira, Stonegrove, Mayor Villalta None
None
~~'-1-~
Lucille L. Mallonee, City Clerk
320

LEASE AGREEMENT BETWEEN

THE CITY OF LOS BANOS AS LESSOR AND MARLENE PENNINGTON AS LESSEE
[Ranchwood Park Facility]
Preamble
THIS LEASE is entered into on March J.2.., 20 IO by and between the CITY OF LOS BANOS, a California municipal corporation, (referred to in this lease as "Lessor") and the MARLENE PENNINGTON, an individual (referred to in this lease as "Lessee").

Lessor for and in consideration of the rent to be paid by Lessee and of the covenants and provisions to be kept and performed by Lessee under this lease, hereby leases to Lessee, and Lessee agrees to lease from Lessor, the following: the real property and improvements commonly known as the Ranchwood Park Facility located at 515 Stonewood Drive, in the City of Los Banos, County of Merced. California, (''the Premises") consisting of approximately 2500 sq.ft.+/- of indoor space and approximately 5580 sq.ft.+/- of outdoor space (consisting of a fenced in turf area, and a playground area with playground equipment.).

ARTICLE 1. TERM OF LEASE
Section 1.01 . Tenn. The term of this lease is five years and shall commence on April 1,2010, ("Commencement Date"), and end on March 31, 2015 ("Term"), unless terminated earlier pursuant to the provisions of this lease.

Section 1.02. Holding Over. In the event Lessee holds over and continues in possession of the Premises after expiration of the Original Term, Lessee's continued occupancy of the Premises shall be considered a month-to-month tenancy subject to all the tenns and conditions of this lease.

Section 1.03. Earl y Tennination Option. Each party shall have the right to prematurely terminate this Lease (the "Termination Option") at the expiration of any of the first four years of the tenn of this Lease, subject to the following terms and conditions:
(a) The party exercising the early termination option must give the other party no less than one hundred twenty days advance written notice prior to the expiration of any of the first four years (twelve month periods) of the term of this Lease, of that party's election to exercise this Termination Option ("Lessee's Tennination Notice"), time being of the essence; and (b) If either party properly exercises this Tern1ination Option, the Lease shall expire without further notice on the last day of the yearly term (twelve month period) in which the notice was exercised ("Early Termination Date'') and neither party shall thereafter have any further rights or obligations accruing after said Early Tennination Date, except those which by the provisions of this Lease expressly survive the expiration of the Lease Term. Rent shall thereafter be payable as scheduled through the Early Termination Date. 321
ARTICLE 2. RENT
Section 2.01. Rent. Lessee agrees to pay to Lessor during the tenn of this lease rent as follows:
( 1) $1,400.00 per month on the first day of each and every month, commencing on the first day of April, 2010, during the first year of the tenn of this lease. (2) $1,470.00 per month on the first day of each and every month, commencing on the first day of April, 2011, during the second year of the tenn of this lease. (3) $1,543.00 per month on the first day of each and every month, commencing on the first day of April, 2012, during the third year of the tenn of this lease. (4) $1,620.00 per month on the first day of each and every month, commencing on the first day of April, 2013, during the fourth year of the tenn of this lease. (5) $1,701.00 per month on the first day of each and every month, commencing on the first day of April, 2014, during the fifth year of the tenn of this lease.

Section 2.02. Security Deposit. Lessee shall also pay to Lessor a "Security Deposit" in the amount of$ 1,400.00. The security deposit will be held by Lessor without interest as security for the full and faithful performance by Lessee of its obligation hereunder, and may be co-mingled with other monies of Lessor. Jn the event of default by Lessee, Lessor may use all or any part of the security deposit for the payment of any unpaid rent or for any other monies owed by Lessee to Lessor. Upon the termination of this Lease, any portion of the security deposit not so used or applied shall be returned to Lessee, provided Lessee faithfully perfonns its obligations hereunder, by mail within a reasonable time after the termination of this Lease. The security deposit shall not be applied by the Lessee toward the last month's rent.

ARTICLE 3. USE OF PREMISES
Section 3.01. Permitted Use. During the term of this lease, Lessee shall use the Premises solely for the purpose of providing pre school and child care services and uses ancillary thereto and for no other purpose without the prior written consent of Lessor which shall not be unreasonably withheld.

Section 3.02. Approvals and Licensing. If any license, permit, or other governmental authorization is required for the services and/or activities provided by Lessee in connection with the use or occupancy of the Premises or any portion of the Premises, Lessee shall procure and maintain said approvals and licenses throughout the tenn of this lease. Failure to procure and maintain said approvals and licenses throughout the term of this lease shall be deemed a material breach of the lease. 2 322
Lessee shall notify Lessor immediately upon suspension or revocation of any license, permit, or other governmental authorization.

Section 3.03. Compliance With Laws. Lessee shall, at Lessee's own cost and expense, comply with all statutes, ordinances, regulations, and requirements of all governmental entities, both federal and state and county or municipal relating to any use and occupancy of the Premises. whether those statutes, ordinances, regulations, and requirements are now in force or are subsequently enacted. The violation of any such statute, ordinance, regulation, or requirement shall constitute grounds for termination of this lease by Lessor.

Section 3.04. Prohibited Uses. Lessee shall not use or permit the Premises or any portion of the Premises to be improved, developed, used, or occupied in any manner or for any purpose that is in any way in violation of any valid law, ordinance, or regulation of any federal, state, county, or local governmental agency, body, or entity. Furthennore-, Lessee shall not maintain, commit, or pennit the maintenance or commission of any nuisance as now or hereafter defined by any statutory or decisional law applicable to the Premises or any part of the Premises.

ARTICLE 4. UTILITIES
Section 4.01. Utilities. Lessee shall pay or cause to be paid, and hold Lessor and Lessor's property including the Premises free and hannless from all charges for the furnishing of gas, water, electricity, telephone service, and other public utilities to the Premises during the lease's term, including the removal of garbage and rubbish from the Premises during the term of this lease.

ARTICLE 5. MAINTENANCE ALTERATIONS AND REPAIRS
Section 5.01. Condition of Premises. Lessee accepts the Premises, as well as the Improvements located on the Premises, in their present condition and stipulates with Lessor that the Premises and Improvements are in good, clean, safe, and tenantable condition as of the date of this lease. Lessee further agrees with and represents to Lessor that the Premises have been inspected by Lessee, that it has received assurances acceptable to Lessee by means independent of Lessor or any agent of Lessor of the truth of all facts material to this lease, and that the Premises are being leased by Lessee as a result of its own inspection and investigation and not as a result of any representations made by Lessor or any agent of Lessor except those expressly set forth in this lease.

Section 5.02. Maintenance bv Lessor. (a) Lessor shall, at its own cost and expense, maintain in good condition and repair the structural elements of the Building and the electrical, plumbing, heating, ventilation, and air conditioning systems. For purposes of this section, "structural elements" shall mean the exterior roof, exterior walls, structural supports, and foundation of the Building. Lessor shall not be liable for any damages to Lessee or the premises of Lessee resulting from Lessor's failure to make any repairs required by this section unless written notice of the need for those repairs has been given to Lessor by Lessee and Lessor has failed for a period of 30 days after receipt of the notice, unless prevented by causes not the fault of the Lessor, to make the needed repairs. Notwithstanding anything in this section to the contrary, Lessee shall promptly reimburse Lessor for the full cost of any repairs made pursuant to this section required because of the negligence or other fault, other than 3 323
nonnal and proper use, of Lessee or its employees or agents. Lessor shall be responsible for maintaining the landscaping, parking lot, and all common areas.

Section 5.03. Maintenance bv Lessee. Lessee shall be responsible for monitoring and maintaining the cleanliness of all indoor and outdoor space used by Lessee. Lessee shall at its own cost and expense keep and maintain all portions of the Premises and all Improvements located on the Premises in good order and repair and in as safe and clean a condition as they were when received by Lessee from Lessor, reasonable wear and tear excepted. Lessee's obligation to repair shall specifically include necessary repairs to the interior walls, floor coverings, ceilings, painting and maintenance of interior walls, the interior and exterior portions of all doors, plate glass, for the Premises.

Section 5.04. Alterations and Liens. Lessee shall not make or pennit any other person to make any alterations to the Premises or to any Improvements on the Premises without the prior written consent of Lessor. Lessor shall not unreasonably withhold this consent. Lessee shall keep the premises free and clear from any and all liens, claims, and demands for work performed, materials furnished, or operations conducted on the Premises at the instance or request of Lessee. Furthermore, any and all alterations, additions, improvements, and fixtures, except furniture and trade fixtures, made or placed in or on the Premises by Lessee or any other person shall on expiration or earlier tennination of this lease, become the premises of Lessor and remain on the Premises. Lessor shall have the option, however, on expiration or termination of this lease, of requiring Lessee, at Lessee's sole cost and expense, to remove any or all such alterations, additions, improvements, or fixtures from the Premises.

Section 5.05. Inspection by Lessor. Lessee shall permit Lessor or Lessor's agents, representatives, or employees to enter the Premises at all reasonable times for the purpose of inspecting the Premises to determine whether Lessee is complying with the terms of this lease, for the purpose of doing other lawful acts that may be necessary to protect Lessor's interest in the Premises, or for the purpose of perfonning Lessor's duties under this lease.

Section 5.06. Surrender of Premises. On expiration or earlier termination of this lease, Lessee shall promptly surrender and deliver the Premises to Lessor in as good condition as they are now at the date of this lease, excluding reasonable wear and tear, and repairs required to be made by Lessor under this lease.

ARTICLE 6. INDEMNITY AND INSURANCE
Section 6.0 I. Indemnification. Lessee shall defend, indemnify, and hold harmless Lessor, its principals, officers, employees, agents, and volunteers from and against any claims, losses, injuries, suits, or judgments and from any and all liability for any and all claims, losses, injuries, suits, or judgments filed or brought by any and all persons (including, without limitation, attorney's fees, disbursements and court costs) because of, arising, from or resulting from, or in connection with the conduct by Lessee of any program, activity or service in, on, or about the premises, or because of or arising from any negligent and or willful act or omission, its principals, officers, agents, employees, volunteers or subcontractors, or in any way connected with the Premises or with any improvements or personal property on the Premises, or some condition of the Premises or some building or improvement on the Premises. The obligation of Lessee imposed by this paragraph shall not apply to any claims, losses, injuries, suits, actions, or judgments, or any liability for any claim, loss, injury, suit, 4 324
action or judgment solely attributable to one or more negligent acts or omissions, or to willful or intentional misconduct of Lessor. its principals, officers, agents, employees, volunteers or subcontractors.

Section 6.02. Public Liabilitv and Premises Damage Insurance. Lessee shall. at its own cost and expense, procure and maintain during the entire tern, of this lease public liability insurance and premises damage insurance insuring Lessor against loss or liability caused by or connected with Lessee's occupation and use of the Premises under this lease in amounts not less than:
(a) $1,000,000 for injury to or death of one or more persons as a result of any one accident or incident; and
(b) $1,000,000 for damage to or destruction of any property of others.

The insurance required under this section shall be issued by a responsible insurance company or companies authorized to do business in California and shall be in a fonn reasonably satisfactory to Lessor. Lessee shall within 10 days of the date of this lease, deposit with Lessor a certificate showing that insurance to be in full force and effect.

Section 6.03. Cancellation Requirements. Each of the insurance policies shall be in a form reasonably satisfactory to Lessor and shall cafl)' an endorsement that, before changing or canceling any policy, the issuing insurance company shall give Lessor at least 30 days' prior written notice.

Duplicate originals or certificates of all such insurance policies shall be delivered to Lessor.

ARTICLE 7. DEFAULT. ASSIGNMENT,

AND TERMINA TJON
Section 7.01. Restriction Against Subletting or Assi!!nment. Lessee shall not encumber, assign, or otherwise transfer this lease, any right or interest in this lease, or any right or interest in the Premises or any of the Improvements that may now or hereafter be constructed or installed on the Premises without first obtaining the express written consent of Lessor. Lessee shall not sublet the Premises or any part of the Premises or allow any other person, other than Lessee's agents, servants, and employees, to occupy the Premises or any part of the Premises without the prior written consent of Lessor. A consent by Lessor to one assignment, one subletting, or one occupation of the Premises by another person shall not be deemed to be a consent to any subsequent assignment, subletting, or occupation of the Premises by another person. Any encumbrance, assignment, transfer, or subletting without the prior written consent of Lessor, whether voluntary or involuntary, by operation of law or otherwise, is void and shall, at the option of Lessor, terminate this lease. The consent of Lessor to any assignment of Lessee's interest in this lease or the subletting by Lessee of the Premises or parts of the Premises shall not be unreasonably withheld.

Section 7.02. Default Defined. The occurrence of any of the following shall constitute a material default and breach of this lease by Lessee:
5 325
(a) Any failure by Lessee to pay the rent or to make any other payment required to be made by Lessee under this lease (when that failure continues for 3 days after written notice of the failure is given by Lessor to Lessee).
(b) The abandonment or vacation of the Premises by Lessee (the absence of Lessee from or the failure by Lessee to conduct business on the Premises for a period in excess of 14 consecutive days shall constitute an abandonment or vacation for purposes of this lease). (c) A failure by Lessee to observe and perfonn any other provision of this lease to be observed or performed by Lessee, when that failure continues for 30 days after written notice of Lessee's failure is given by Lessor to Lessee; provided, however, that if the nature of that default is such that it cannot reasonably be cured within 30-day period, Lessee shall not be deemed to be in default if Lessee commences that cure within the 30-day period and thereafter diligently prosecutes it to completion. (d) The making by Lessee of any general assignment for the benefit of creditors; the filing by or against Lessee of a petition to have Lessee adjudged a bankrupt or of a petition for reorganization or arrangement under any law relating to bankruptcy (unless, in the case of a petition filed against Lessee, it is dismissed within 60 days); the appointment of a trustee or receiver to take possession of substantially all of Lessee's assets located at the Premises or of Lessee's interest in this lease, when possession is not restored to Lessee within 30 days; or the attachment, execution, or other judicial seizure of substantially all of Lessee's assets located at the Premises or of Lessee's interest in this lease, when that seizure is not discharged within 30 days.

Section 7.03. Termination of Lease and Recoverv of Damages. In the event of any default by Lessee under this lease, in addition to any other remedies available to Lessor at law or in equity, Lessor shall have the right to terminate this lease and all rights of Lessee hereunder by giving written notice of the termination. No act of Lessor shall be construed as terminating this lease except written notice given by Lessor to Lessee advising Lessee that Lessor elects to terminate the lease. In the event Lessor elects to terminate this lease, Lessor may recover from Lessee:
(a) The worth at the time of award of any unpaid rent that had been earned at the time of tennination of the lease:
(b) The worth at the time of award of the amount by which the unpaid rent that would have been earned after termination of the lease until the time of award exceeds the amount of rental loss that Lessee proves could have been reasonably avoided;
(c) The worth at the time of award of the amount by which the unpaid rent for the balance of the term of this lease after the time of award exceeds the amount of rental loss that Lessee proves could be reasonably avoided; and
(d) Any other amount necessary to compensate Lessor for all detriment proximately caused by Lessee's failure to perfonn its obligations under this lease.

Section 7.04. Lessor's Right to Continue Lease in Effect. 6 326
(a) If Lessee breaches this lease and abandons the Premises before the natural expiration of the term of this lease, Lessor may continue this lease in effect by not terminating Lessee's right to possession of the Premises. in which event Lessor shall be entitled to enforce all its rights and remedies under this lease, including the right to recover the rent specified in this lease as it becomes due under this lease. For as long as Lessor does not tenninate this lease, Lessee shall have the right to assign or sublease the Premises with the Lessor's prior written consent. Lessor shall not unreasonably withhold consent.
(b) No act of Lessor, including but not limited to Lessor's entry on the Premises, efforts to re let the Premises, or maintenance of the Premises, shall be construed as an election to terminate this lease unless a written notice of that intention is given to Lessee or unless the termination of this lease is decreed by a court of competent jurisdiction.

Section 7.05. Lessor's Right to Relet. In the event Lessee breaches this lease, Lessor may enter on and re let the Premises or any part of the Premises to a third party or third parties for any tenn, at any rental, and on any other terms and conditions that Lessor in its sole discretion may deem advisable, and shall have the right to make alterations and repairs to the Premises. Lessee shall be liable for all of Lessor's costs in reletting, including but not limited to remodeling costs necessitated by any modifications made by Lessee and required for the reletting. In the event Lessor relets the premises, Lessee shall pay all rent due under and at the times specified in this lease, less any amount or amounts actually received by Lessor from the re letting.

Section 7.06. Lessor's Right to Cure Lessee Defaults. If Lessee breaches or fails to perform any of the covenants or provisions of this lease, Lessor may, but shall not be required to, cure Lessee's breach. Any sum expended by Lessor, with the then maximum legal rate of interest, shall be reimbursed by Lessee to Lessor with the next due rent payment under this lease.

Section 7.07. Cumulative Remedies. The remedies granted to Lessor in this Article shall not be exclusive but shall be cumulative and in addition to all remedies now or hereafter allowed by law or provided in this lease.

Section 7.08. Waiver of Breach. The waiver by Lessor of any breach by Lessee of any of the provisions of this lease shall not constitute a continuing waiver or a waiver of any subsequent breach by Lessee either of the same or another provision of this lease.

ARTICLE 8. MISCELLANEOUS
Section 8.01. Discrimination Prohibited. Neither Lessee nor any officer, employee, or agent of Lessee shall discriminate in the employment of persons providing services on the premises in any facility the use of which is authorized by this Agreement on account of race, color, national origin, ancestry, religion, sex, physical handicap, or medical condition, in violation of any federal or state law.

Section 8.02 Force Majeure--Unavoidable Delays. lf the performance of any act required by this lease to be performed by either Lessor or Lessee is prevented or delayed by reason of an act of God, strike, lockout, labor troubles, inability to secure materials, restrictive governmental laws or regulations, or any other cause except financial inability that is not the fault of the party required to 7 327
perform the act, the time for performance of the act will be extended for a period equivalent to the period of delay, and performance of the act during the period of delay will be excused.

Section 8.03. Attorneys' Fees. If any litigation is commenced between the parties to this lease concerning the Premises, this lease, or the rights and duties of either in relation to the Premises or to this lease, the party prevailing in that litigation shall be entitled to, in addition to any other relief that may be granted in the litigation, a reasonable sum as and for its attorneys' fees in that litigation that are detem1ined by the court in that litigation or in a separate action brought for that purpose.

Section 8.04. Notices. Except as otherwise expressly provided by law, any and all notices or other communications required or permitted by this lease or by law to be served on or given to either party to this lease by the other party to this lease shall be in writing and shall be deemed duly served and given when personally delivered to the party to whom they are directed, or in lieu of personal service, when deposited in the United States mail, first-class postage prepaid, addressed to:

Lessor
City of Los Banos
520 J Street
Los Banos, CA 93635
Lessee
Marlene Pennington
3572 San Francisco Court
Merced, CA 95348
Either party, Lessor or Lessee, may change its address for the purpose of this section by giving written notice of that change to the other party in the manner provided in this section.

Section 8.05. Bindin!l on Successors. This lease shall be binding on and shall inure to the benefit of the successors and assigns of Lessor and Lessee, but nothing in this section shall be construed as a consent by Lessor to any assignment of this lease or any interest therein by Lessee except as provided this lease.

Section 8.06. Partial Invalidity. If any provision of this lease is held by a court of competent jurisdiction to be either invalid, void, or unenforceable, the remaining provisions of this lease shall remain in full force and effect unimpaired by the holding.

Section 8.07. Sole and Only Agreement. This instrument constitutes the sole and only agreement between Lessor and Lessee respecting the Premises, the leasing of the Premises to Lessee, or the lease term created under this lease, and correctly sets forth the obligations of Lessor and Lessee to each other as of its date. Any agreements or representations respecting the Premises or their leasing by Lessor to Lessee not expressly set forth in this instmment are null and void.

Section 8.08. Time of Essence. Time is expressly declared to be of the essence in this lease.

Section 8.09. No Partnership or Joint Venture. Nothing in this lease shall be construed to render Lessor in any way or for any purpose a partner, joint venturer, or associate in any relationship with Lessee other than that of Lessor and Lessee, nor shall this lease be construed to authorize either to act as agent for the other.
8 328
IN WITNESS THEREOF, this Agreement was executed by the parties thereto on the date set forth above.

LESSEE:

Marlene Pennington
LESSOR:

CITY OF LOS BANOS,
Lucille Mallonee, City Clerk
APPROVED AS TO .FORM:
~,, ;Sh~
City Attorney
9 329

THIS PAGE IS INTENTIONALLY LEFT BLANK
330
TO:

FROM:

DATE:
tOsBanos
At tile Crossroads of California
Agenda Staff Report
Mayor & City Council Members
Lucy Mallonee, MMC ~ City Clerk/Human Resources Director August 6, 2025
TYPE OF REPORT: Agenda
SUBJECT: First Amendment to Employment Agreement - Interim City Manager Recommendation:

Attached please find a resolution for your review and consideration of approval that would authorize the First Amendment to the Employment Agreement between the City of Los Banos and Gary M. Brizzee, Jr., Interim City Manager.

Discussion:

On February 10, 2025, the City entered into an Employment Agreement with Gary M.

Brizzee, Jr. to serve as Interim City Manager. This First Amendment makes two changes to the original agreement:

1. Section 2 - Term: The amendment allows for a transitional overlap period of up to 30 days following the appointment of a permanent City Manager, with the option to extend the overlap period up to a maximum of 90 days. This addition will support a smoother transfer of knowledge and responsibilities.

2. Section 4(A) - Compensation: Due to the adoption of the 2025/2026 Fiscal Year Budget on June 18, 2025 (City Council Resolution No. 6948), which included a salary range adjustment for the City Manager classification, the Interim City Manager's hourly rate will be adjusted to $132.40 effective July 1, 2025, in accordance with the original agreement's terms.

All other provisions of the original Employment Agreement remain unchanged. 1 ITEM 12
331
Fiscal Impact:

The revised hourly rate is provided for in the adopted 2025/2026 Fiscal Year Budget.

No additional appropriation is required.

Reviewed by:

Minerv~ Moreno, Finan e
Attachments:

Resolution/Agreement
2 332
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF LOS BANOS APPROVING THE FIRST AMENDMENT
TO THE EMPLOYMENT AGREEMENT WITH GARY M.

BRIZZEE, JR. TO SERVE AS INTERIM CITY MANAGER
WHEREAS, the City Council of the City of Los Banos entered into an Employment Agreement with Gary M. Brizzee, Jr. on February 10, 2025, to serve as Interim City Manager; and WHEREAS, the City Council desires to amend the Employment Agreement to allow for a transitional overlap period of up to thirty (30) days following the appointment of a permanent City Manager, with the option to extend said period up to a maximum of ninety (90) days; and WHEREAS, as part of the Fiscal Year 2025/2026 Budget process, the City Council adopted Resolution No. 6948 on June 18, 2025, which included a salary range adjustment for the City Manager job classification; and
WHEREAS, as a result of the approved salary schedule adjustment, the hourly rate for the Interim City Manager shall be amended to $132.40, effective July 1, 2025, consistent with Section 4(A) of the Employment Agreement; and
WHEREAS, said First Amendment to the Employment Agreement has been reviewed and approved by the City Council of the City of Los Banos at their regular meeting of June 19, 2025.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Los Banos hereby approves the First Amendment to the Employment Agreement with Gary M. Brizzee, Jr. to serve as Interim City Manager, attached hereto and made a part hereof as "Exhibit A" The foregoing Resolution was introduced at a regular meeting of the City Council of the City of Los Banos held on the 6th day of August 2025, by Council Member _ who moved its adoption, which motion was duly seconded by Council Member_ and the Resolution adopted by the following vote:

AYES: Council Members
NOES:

ABSENT:

APPROVED:

Michael S. Amabile, Mayor
ATTEST:

Lucille L. Mallonee, City Clerk
333

CITY OF LOS BANOS

FIRST AMENDMENT

EMPLOYMENT AGREEMENT
Interim City Manager
This First Amendment to the City of Los Banos Employment Agreement is made and entered into as of this ___ day of August 2025, by and between the City of Los Banos, a municipal corporation, (hereinafter the "City"), and Gary M. Brizzee, Jr., (hereinafter "Employee").

WHEREAS, the City and Employee entered into an Employment Agreement effective February 10, 2025, hereinafter referred to as the "Employment Agreement"; and WHEREAS, to ensure a smooth transition and transfer of knowledge, Section 2 provides the term options of the agreement, which are being amended to include a provision that allow for a 30 day overlap once the permanent City Manager is hired, with a maximum of 90 days; and
WHEREAS, Section 4(A) of the Employment Agreement provides, in part, that the City must ensure that the hourly rate is not less than the minimum or excess of the maximum City Manager salary range (divided by 173.333 to equal an hourly rate) as listed on the City's publicly-available pay schedule; and
WHEREAS, as a result of the 2025/2026 Fiscal Year Budget process and adoption by City Council on June 18, 2025 (City Council Resolution No. 6948) which included a salary adjustment to the City Manager salary range, it is necessary to amend Section 4(A) of the Employment Agreement related to hourly rate of pay as set forth herein.

NOW THEREFORE IT IS HEREBY AGREED as follows:

1. Amendment of Employment Agreement
(a) The City and Employee mutually agree to amend Section 2 of the Employment Agreement as follows:

Term. Employee shall commence the performance of his/her duties under this Agreement on February 10, 2025 ("Commencement Date"). This Agreement shall expire as of the first of the following to occur: (i) upon 30- days after the employment commencement date of a permanent City Manager employed by City and may be extended up to 90-days maximum upon mutual agreement of the parties; (ii) upon Employee working 960 hours combined for any CalPERS Agencies during fiscal year 2025-2026; or (iii) upon termination of the Agreement by either Employee or City as provided in Section 7.
1 334
(b) The City and Employee mutually agree to amend Section 4(A) of the Employment Agreement to increase Employee's hourly rate of pay to $132.40 effective July 1, 2025.

2. Severability
If any provisions of this First Amendment to the Employment Agreement shall be held invalid or unenforceable by a court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision of this First Amendment unless elimination of such provision materially alters the rights and obligations set forth herein.

3. Effects on Employment Agreement
This First Amendment to the Employment Agreement shall affect only the Term of the Agreement and Employee's hourly rate, all other terms and conditions of the Employment Agreement between the City and Employee shall remain in full force and effect.

IN WITNESS WHEREOF, the parties have executed this Second Amendment as of the date first herein written above.

Dated:

ATTEST:

Lucille L. Mallonee, City Clerk

APPROVED AS TO FORM BY THE

CITY ATTORNEY FOR THE
CITY OF LOS BANOS:

William A. Vaughn, City Attorney
"EMPLOYEE"
Gary M. Brizzee, Jr.
"CITY"
Michael S. Amabile, Mayor
2 335

CITY OF LOS BANOS

INTERIM CITY MANAGER EMPLOYMENT AGREEMENT
THIS AGREEMENT is between the City of Los Banos, a California municipal corporation ("City"), and Gary M. Brizzee, Jr .. an individual ("Employee") (collectively, the "Parties").

RECITALS
WHEREAS, the City has a vacancy at the position of City Manager, a regular position for which the City is conducting a recruitment for a permanent appointment; WHEREAS, the City has an immediate need for an employee to temporarily perform the position of City Manager, a position involving specialized skills and training and which is critically necessary to the on-going duties and functions of the City; WHEREAS, Government Code Sections 2122l(h) and 7522.56 permit retired annuitants under the California Public Employees' Retirement System ("CalPERS") to be employed without reinstatement from retirement upon appointment by a governing body to fill a vacant position on an interim basis during the recruitment to permanently fill the vacant position; WHEREAS, as a CalPERS retired annuitant under Government Code Section 21221(h), Employee possesses extensive experience as a City Manager and possesses the specialized skill set to perform the required duties of Interim City Manager and desires to perform the duties of, and assume responsibility for, the position of Interim City Manager and acknowledges that such employment is at-will and of a limited duration for a definite period of time; WHEREAS, Employee is competent and qualified to perform the services required by this Agreement, and City wishes to have Employee perform the City Manager duties on an interim basis; and
NOW, THEREFORE, the parties do mutually agree as follows:

AGREEMENT

1. Employment. The City hereby appoints Employee as the Interim City Manager, and Employee hereby accepts that employment effective February 10. 2025. The employment under this agreement incorporates all of the requirements under Government Code sections 21221 (h) and 7522.56. Employee acknowledges that he will be an at-will, exempt, temporary employee of City, and that he shall serve at the pleasure of City Council.

2. Term. Employee shall commence the performance of his/her duties under this Agreement on Februarv 10. 2025 ("Commencement Date"). This Agreement shall expire as of the first of the following to occur: (i) upon the employment commencement date of a permanent City Manager employed by City; (ii) upon Employee working 960 hours combined for any 1 336
CalPERS Agencies during fiscal year 2024-2025 or 960 hours in any subsequent fiscal year; or (iii) upon termination of the Agreement by either Employee or City as provided in Section 7.

3. Duties. Employee shall serve as the Interim City Manager and shall be for the term of this Agreement vested with the powers, duties and responsibilities of the City Manager as specified in Los Banos Municipal Code, and ordinances and resolutions of City Council, and to perform other legally permissible and proper duties and functions as City Council may from time to time assign. It is the intent of City Council for the Interim City Manager to function as the chief executive officer of City. Without additional compensation, Employee shall provide such other services as are customary and appropriate to the position oflnterim City Manager. Employee shall devote his/her best efforts and full-time attention to the performance of these duties. During the period of his/her employment, Employee shall not accept any other employment or engage, directly or indirectly, in any other business, commercial, or professional activity, whether or not to pecuniary advantage, that is or may be competitive with City, that might cause a conflict of interest with City, or that otherwise might interfere with the busi.ness or operation of City or the satisfactory performance of Employee's duties as Interim City Manager. During the period of his/her employment, Employee shall not accept any other employment for or serve as a consultant for any other public or private organization without the prior written consent of City Council.

4. Compensation and Work Schedule.

A. Rate of Pay. Employee shall be paid at the rate of $102.50 per hour. The City has confirmed that this rate is not less than the minimum or in excess of the maximum, City Manager salary range (divided by 173.333 to equal an hourly rate) as listed on the City's publicly-available pay schedule. Payments will be made on regularly scheduled City payroll dates, and shall be subject to all applicable payroll taxes and withholdings. Such compensation shall be the sole compensation for Employee's services under this Agreement. The City will reimburse Employee for City related business expenses approved by the City Council and mileage accrued between his/her primary residence and Los Banos City Hall (at the IRS mileage reimbursement rate of 70 cents per mile) that is reasonable and necessary for him to perform his/her duties as Interim City Manager and in accordance with the applicable mileage rate. In the alternative, at the option of the Employee the City will provide Employee with a City owned vehicle for his/her commute and other city related activities.

B. Work Schedule. Employee is expected to devote necessary time, within and outside normal business hours, to the business of the City. Employee shall devote the time necessary to adequately perform his/her duties as Interim City Manager. The Parties anticipate that Employee will work approximately forty ( 40) hours per week allocated between regular business hours and hours outside of regular business hours including, but not limited, to attendance at regular and special City Council meetings, and attendance at such community events and City functions as the City Council may direct. Toward that end, Employee shall be allowed reasonable flexibility in setting his/her own office hours, provided the schedule of such hours includes presence at City Hall, reasonable availability to City Council, City staff, and members of the community during regular City business hours and for the performance of his/her duties and of City business. 2 337
C. 960-Hour Limitation. Pursuant to Government Code sections 21221(h) and section 7522.56, however, Employee's performance of services as a retired annuitant, whether compensated or on a volunteer basis, shall not exceed 960 hours per fiscal year in all positions for all public employers that contract with CalPERS for retirement benefits. The City retains the right to designate, reduce, change, or amend the number of hours assigned to Employee consistent with the City's workload and other needs.
i. Employee will be responsible for keeping track of the number of hours worked on a time sheet form provided by the City and submitting them at least every two weeks. ii. The position to which Employee is appointed is a temporary, hourly assignment which shall not exceed 40 hours per week. Due to the nature of the position, it is understood that the work day and work week hours may vary, however Employee shall not work overtime (i.e. hours in excess of 40 per week).
iii. The City and Employee anticipate that Employee will primarily work a five day (Monday-Friday) schedule. The City and Employee acknowledge that this work will include hours outside of regular business hours including, without limitation, attendance at regular and special City Council meetings and attendance at such community events and City functions at the Council may direct.

5. Employment Status and Benefits.

A. Benefits. Other than the compensation described above in Section 3, Employee will receive no other benefits, incentives, compensation in lieu of benefits, or any other form of compensation. Employee understands and agrees that he is not, and will not be, eligible to receive any benefits from the City, including any City group plan for hospital, surgical, or medical insurance, any City retirement program, or any paid holidays, vacation, sick leave, or other leave, with or without pay, or any other job benefits available to an employee in the regular service of the City, except for Worker's Compensation Insurance coverage or benefits required by state or federal law.

B. No Property Right in Employment. Employee understands and agrees that the terms of his/her employment are governed only by this Agreement and that no right of regular employment for any specific term is created by this Agreement. Employee further understands that he acquires no property interest in his/her employment by virtue of this Agreement, that the employment is "at will" as defined by the laws of the State of California (meaning that he can be terminated at any time for any reason or for no reason), and that he is not entitled to any pre- or post-deprivation administrative hearing or other due process upon termination or any disciplinary action except as otherwise provided by law.

6. Representation of Employee.

A. Employee represents that he is properly trained and certified to perform the duties required of the Interim City Manager position and this Agreement. 3 338
B. Employee further represents that he has not worked any hours as a retired annuitant for a CalPERS employer in the 2024 fiscal year (July 1, 2024 - June 30, 2025) and will immediately notify the City if he works any hours for another CaIPERS employer. Consistent with current Government Code provisions, the City shall not provide any benefits; leave time or compensation in lieu of benefits.

C. Employee represents that he has not received any unemployment insurance payments for prior retired annuitant work for any CalPERS employer within twelve months of the effective date of this Agreement.

D. Employee represents that more than 180 days have passed since his/her date of his/her bona fide CalPERS retirement.

7. Termination.

A. By City. This Agreement may be terminated by City for any reason 30 days after providing written notice to Employee of such termination. City's only obligation in the event of such termination will be payment to Employee of all compensation then due and owing as set forth in Section 3A up to and including the effective date of termination.

B. By Employee. This Agreement may be terminated by Employee for any reason 3 O days after providing written notice to City of such termination. City shall have the option, in its complete discretion, to make Employee's termination effective at any time prior to the end of such period, provided City pays Employee all compensation as set forth in Section 3A. then due and owing him through the last day actually worked.

C. No Notice for Expiration. Nothing in this Section 7 shall be construed to require either party to give advance written notice in order for the Agreement to expire as set forth in Section 2.

D. Termination Obligations. Employee agrees that all property, including, without limitation, all equipment, tangible Proprietary Information (as defined below), documents, records, notes, contracts, and computer-generated materials furnished to or prepared by him incident to his/her employment belongs to City and shall be returned promptly to City upon termination of Employee's employment. Employee's obligations under this subsection shal1 survive the termination of his/her employment and the expiration of this Agreement.

8. Non-Assignment of Agreement. This Agreement is intended to secure the individual services of the Employee and is not assignable or transferable by Employee to any third party.

9. Governing LawNenue. This Agreement shall be interpreted according to the laws of the State of California. Venue for any action or proceeding regarding this contract shall be in Merced County.

10. Enforceability. If any term, covenant, condition, or provision of this Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remainder of the 4 339
provisions hereof shall remain in full force and effect and shall in no way be affected, impaired or invalidated thereby.

11. Conflict of Interest. Employee agrees that during the term of this Agreement, he will not maintain any financial interest or engage in any other contract employment, occupation, work, endeavor or association, whether compensated or not, that would in any way conflict with, or impair Employee's ability to perform the duties described in this Agreement. Any work performed for the City outside the terms of this Agreement must be approved in advance in writing by the City Council.

12. Entire Agreement and Modification. This Agreement constitutes the entire understanding of the parties hereto. This Agreement supersedes any previous contracts, agreements, negotiations or understandings, whether written or oral, between the parties.

Employee shall be entitled to no other compensation or benefits than those specified herein, and Employee acknowledges that no representation, inducements or promises not contained in this Agreement have been made to Employee to induce Employee to enter into this Agreement. No changes, amendments, or alterations hereto shall be effective unless in writing and signed by both parties. Employee understands that no oral modification of this Agreement made by any officer, agent, or employee of the City is effective. Employee specifically acknowledges that in entering into and executing this Agreement, he relies solely upon the provisions contained herein and no others.

13. Reimbursement for Expenses. City recognizes that certain expenses of a non-personal but job related nature are incurred by Employee, and agrees to reimburse or to pay said general expenses, including without limitation reimbursement for Employee's use of his/her personal automobile for City related business which reimbursements shall be made in accordance with City policy, IRS regulations, and other applicable state or federal laws. Other than as specifically provided herein, Employee shall receive no other compensation or reimbursements for expenses incurred by him in the performance of this Agreement.

14. Notices. All notices permitted or required under this Agreement shall be given to the respective parties by hand-delivery or by mail at the following address, or at such other address as the respective parties may provide in writing for this purpose, by deposit in the U.S. Mail, postage pre-paid, addressed as follows:

CITY: City of Los Banos
520 J Street
Los Banos, CA 93635
A TfN: City Clerk
EMPLOYEE: Gary M. Brizzee, Jr.
520 J Street
Los Banos, CA 93635
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15. Indemnification. In accordance with and subject to the limitations of the California Government Claims Act and California Labor Code, the City shall defend, save hannless and indemnify Employee against any tort, professional liability, claim or demand or other legal action, arising out of an alleged act or omission occurring in the performance of Employee's services as interim City Manager, except that this provision shall not apply with respect to any intentional tort or crime committed by Employee, or any actions outside the course and scope of his/her employment as interim City Manager. The duty of defense shall include reimbursement of any out-of-pocket expenses incurred by Employee in connection with his/her service as a witness, party or other participant in litigation, whether such service occurs during or after the termination of Employment. Said duties of defense and indemnity shall survive the termination of employment under this Agreement.

16. Drafting of Agreement. The Parties hereto acknowledge and agree that although this Agreement has been drafted by City's legal counsel, Employee has reviewed, or had an opportunity to review the terms of this Agreement with Employee's legal counsel. Consequently, the doctrine that ambiguities in an agreement should be resolved against the drafting Party shall not be employed in connection with this Agreement and this Agreement shall be interpreted in accordance with its fair meaning.

17. Independent Review of Agreement. Employee acknowledges that Employee has had the opportunity and has conducted an independent review of the financial and legal effects of this Agreement. Employee acknowledges that Employee has made an independent judgment upon the financial and legal effects of this Agreement and has not relied upon any representation of City, its officers, agents or Employees other than those expressly set forth in this Agreement.

18. Effect of Waiver. The failure of either party to insist on strict compliance with any of the terms, covenants, or conditions of this Agreement by the other party shall not be deemed a waiver of that term, covenant or condition, nor shall any waiver or relinquishment of any right or power at any one time or times be deemed a waiver or relinquishment of that right or power for all or any other times.

19. Partial Invalidity. If any provision in this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions shall nevertheless continue in full force without being impaired or invalidated in any way.

20. Attorney's Fees. In the event of any legal action between the parties hereto to enforce the provisions of this Agreement, the prevailing party shall be entitled to attorney's fees and costs.

21. Counterparts. This Agreement may be executed on separate copies, any one of which need not contain signatures of more than one party but all of which taken together shall constitute one and the same Agreement.
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IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first herein written above.

Dated: 7. //. , 2025
Dated: 1--13 , 2025
ATTEST:

Lucille
~~L. Mallonee ~
City Clerk

APPROVED AS TO FORM
s\!Hanl K Vaughn
City Attorney
"EMPLOYEE"
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Los Banos City CouncilAugust 6, 2025

Los Banos City Council
August 6, 2025