Agenda packet — Orange City Council, August 12, 2025 (part 2 of 3)

ATTACHMENT NO. 1

CALIFORNIA LABOR CODE
SECTIONS 1725.5, 1771, 1771.1, 1771.4, 1775, 1776, 1777.5, 1813 and 1815

Section 1725.5. Registration of contractors; mandatory registration; qualifications and application; fees; exempt contractors
A contractor shall be registered pursuant to this section to be qualified to bid on, be listed in a bid proposal, subject to the requirements of Section 4104 of the Public Contract Code, or engage in the performance of any public work contract that is subject to the requirements of this chapter. For the purposes of this section, “contractor” includes a subcontractor as defined by Section 1722.1. (a) To qualify for registration under this section, a contractor shall do all of the following:
(1)(A) Register with the Department of Industrial Relations in the manner prescribed by the department and pay an initial nonrefundable application fee of four hundred dollars ($400) to qualify for registration under this section and an annual renewal fee on or before July 1 of each year thereafter. The annual renewal fee shall be in a uniform amount set by the Director of Industrial Relations, and the initial registration and renewal fees may be adjusted no more than annually by the director to support the costs specified in Section 1771.3. (B) Beginning June 1, 2019, a contractor may register or renew according to this subdivision in annual increments up to three years from the date of registration. Contractors who wish to do so will be required to prepay the applicable nonrefundable application or renewal fees to qualify for the number of years for which they wish to preregister.
(2) Provide evidence, disclosures, or releases as are necessary to establish all of the following:
(A) Workers' compensation coverage that meets the requirements of Division 4 (commencing with Section 3200) and includes sufficient coverage for any worker whom the contractor employs to perform work that is subject to prevailing wage requirements other than a contractor who is separately registered under this section.

Coverage may be evidenced by a current an d valid certificate of workers' compensation insurance or certification of self-insurance required under Section 7125 of the Business and Professions Code. (B) If applicable, the contractor is licensed in accordance with Chapter 9 (commencing with Section 7000) of the Business and Professions Code.
(C) The contractor does not have any delinquent liability to an employee or the state for any assessment of back wages or related damages, interest, fines, or penalties pursuant to any final judgment, order, or determination by a court or any federal, state, or local administrative agency, including a confirmed arbitration award. However, for purposes of this paragraph, the contractor shall not be disqualified for any judgment, order, or determination that is under appeal, provided that the contractor has secured the payment of any amount eventually found due through a bond or other appropriate means. (D) The contractor is not currently debarred under Section 1777.1 or under any other federal or state law providing for the debarment of contractors from public works. (E) The contractor has not bid on a public works contract, been listed in a bid proposal, or engaged in the performance of a contract for public works without being lawfully registered in accordance with this section, within the preceding 12 months or sinc e the effective date of the requirements set forth in subdivision (e), whichever is earlier. If a contractor is found to be in violation of the requirements of this paragraph, the period of disqualification shall be waived if both of the following are true:
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(i) The contractor has not previously been found to be in violation of the requirements of this paragraph within the preceding 12 months.
(ii) The contractor pays an additional nonrefundable penalty registration fee of two thousand dollars ($2,000). (b) Fees received pursuant to this section shall be deposited in the State Public Works Enforcement Fund established by Section 1771.3 and shall be used only for the purposes specified in that section. (c) A contractor who fails to pay the renewal fee required under paragraph (1) of subdivision (a) on or before the expiration of any prior period of registration shall be prohibited from bidding on or engaging in the performance of any contract for public work until once again registered pursuant to this section. If the failure to pay the renewal fee was inadvertent, the contractor may renew its registration retroactively by paying an additional nonrefundable penalty renewal fee equal to the amount of the renewal fee within 90 days of the due date of the renewal fee.
(d) If, after a body awarding a contract accepts the contractor's bid or awards the contract, the work covered by the bid or contract is determined to be a public work to which Section 1771 applies, either as the result of a determination by the director pursuant to Section 1773.5 or a court decision, the requirements of this section shall not apply, subject to the following requirements:
(1) The body that awarded the contract failed, in the bid specification or in the contract documents, to identify as a public work that portion of the work that the determination or decision subsequently classifies as a public work.
(2) Within 20 days following service of notice on the awarding body of a determination by the Director of Industrial Relations pursuant to Section 1773.5 or a decision by a court that the contract was for public work as defined in this chapter, the contractor and any subcontractors are registered under this section or are replaced by a contractor or subcontractors who are registered under this section. (3) The requirements of this section shall apply prospectively only to any subsequent bid, bid proposal, contract, or work performed after the awarding body is served with notice of the determination or decision referred to in paragraph (2).
(e) The requirements of this section shall apply to any bid proposal submitted on or after March 1, 2015, to any contract for public work, as defined in this chapter, executed on or after April 1, 2015, and to any work performed under a contract for public work on or after January 1, 2018, regardless of when the contract for public work was executed.
(f) This section does not apply to work performed on a public works project of twenty -five thousand dollars ($25,000) or less when the project is for construction, alteration, demolition, installation, or repair work or to work performed on a public works project of fifteen thousand dollars ($15,000) or less when the project is for maintenance work.

Section 1771. Payment of general prevailing rate

Except for public works projects of one thousand dollars ($1,000) or less, not less than the general prevailing rate of per diem wages for work of a similar character in the locality in which the public work is performed, and not less than the general prev ailing rate of per diem wages for holiday and overtime work fixed as provided in this chapter, shall be paid to all workers employed on public works.

This section is applicable only to work performed under contract, and is not applicable to work carried out by a public agency with its own forces. This section is applicable to contracts let for maintenance work. 198

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Section 1771.1 . Registration as a contractor or subcontractor required prior to bid submission; exceptions; violations; penalties
(a) A contractor or subcontractor shall not be qualified to bid on, be listed in a bid proposal, subject to the requirements of Section 4104 of the Public Contract Code , or engage in the performance of any contract for public work, as defined in this chapter, unless currently registered and qualified to perform public work pursuant to Section 1725.5. It is not a violation of this section for an unregistered contractor to submit a bid that is authorized by Section 7029.1 of the Business and Professions Code or by Section 10164 or 20103.5 of the Public Contract Code , provided the contractor is registered to perform public work pursuant to Section 1725.5 at the time the contract is awarded.
(b) Notice of the requirement described in subdivision (a) shall be included in all bid invitations and public works contracts, and a bid shall not be accepted nor any contract or subcontract entered into without proof of the contractor or subcontractor's current registration to perform public work pursuant to Section 1725.5. (c) An inadvertent error in listing a subcontractor who is not registered pursuant to Section 1725.5 in a bid proposal shall not be grounds for filing a bid protest or grounds for considering the bid nonresponsive, provided that any of the following apply:
(1) The subcontractor is registered prior to the bid opening. (2) Within 24 hours after the bid opening, the subcontractor is registered and has paid the penalty registration fee specified in subparagraph (E) of paragraph (2) of subdivision (a) of Section 1725.5. (3) The subcontractor is replaced by another registered subcontractor pursuant to Section 4107 of the Public Contract Code.
(d) Failure by a subcontractor to be registered to perform public work as required by subdivision (a) shall be grounds under Section 4107 of the Public Contract Code for the contractor, with the consent of the awarding authority, to substitute a subcontractor who is registered to perform public work pursuant to Section 1725.5 in place of the unregistered subcontractor.
(e) The department shall maintain on its Internet Web site a list of contractors who are currently registered to perform public work pursuant to Section 1725.5.
(f) A contract entered into with any contractor or subcontractor in violation of subdivision (a) shall be subject to cancellation, provided that a contract for public work shall not be unlawful, void, or voidable solely due to the failure of the awarding body, contractor, or any subcontractor to comply with the requirements of Section 1725.5 or this section.
(g) If the Labor Commissioner or his or her designee determines that a contractor or subcontractor engaged in the performance of any public work contract without having been registered in accordance with this section, the contractor or subcontractor shall forfeit, as a civil penalty to the state, one hundred dollars ($100) for each day of work performed in violation of the registration requirement, not to exceed an aggregate penalty of eight thousand dollars ($8,000) in addition to any penalty registration fee assessed pursuant to clause (ii) of subparagraph (E) of paragraph (2) of subdivision (a) of Section 1725.5. (h)(1) In addition to, or in lieu of, any other penalty or sanction authorized pursuant to this chapter, a higher tiered public works contractor or subcontractor who is found to have entered into a subcontract with an unregistered lower tier subcontractor to perform any public work in violation of the requirements of Section 1725.5 or this section shall be subject to forfeiture, as a civil penalty to the state, of one hundred dollars ($100) 199

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for each day the unregistered lower tier subcontractor performs work in violation of the registration requirement, not to exceed an aggregate penalty of ten thousand dollars ($10,000). (2) The Labor Commissioner shall use the same standards specified in subparagraph (A) of paragraph (2) of subdivision (a) of Section 1775 when determining the severity of the violation and what penalty to assess, and may waive the penalty for a first time violation that was unintentional and did not hinder the Labor Commissioner's ability to monitor and enforce compliance with the requirements of this chapter. (3) A higher tiered public works contractor or subcontractor shall not be liable for penalties assessed pursuant to paragraph (1) if the lower tier subcontractor's performance is in violation of the requirements of Section 1725.5 due to the revocation of a previously approved registration. (4) A subcontractor shall not be liable for any penalties assessed against a higher tiered public works contractor or subcontractor pursuant to paragraph (1). A higher tiered public works contractor or subcontractor may not require a lower tiered subcontractor to indemnify or otherwise be liable for any penalties pursuant to paragraph (1).
(i) The Labor Commissioner or his or her designee shall issue a civil wage and penalty assessment, in accordance with the provisions of Section 1741, upon determination of penalties pursuant to subdivision (g) and subparagraph (B) of paragraph (1) of subdivision (h). Review of a civil wage and penalty assessment issued under this subdivision may be requested in accordance with the provisions of Section 1742 . The regulations of the Director of Industrial Relations, which govern proceedings for review of civil wage and penalty assessments and the withholding of contract payments under Article 1 (commencing with Section 1720) and Article 2 (commencing with Section 1770), shall apply. (j)(1) Where a contractor or subcontractor engages in the performance of any public work contract without having been registered in violation of the requirements of Section 1725.5 or this section, the Labor Commissioner shall issue and serve a stop order prohibiting the use of the unregistered contractor or the unregistered subcontractor on all public works until the unregistered contractor or unregistered subcontractor is registered. The stop order shall not apply to work by registered contractors or subcontractors on the public work.
(2) A stop order may be personally served upon the contractor or subcontractor by either of the following methods:
(A) Manual delivery of the order to the contractor or subcontractor personally. (B) Leaving signed copies of the order with the person who is apparently in charge at the site of the public work and by thereafter mailing copies of the order by first class mail, postage prepaid to the con tractor or subcontractor at one of the following:
(i) The address of the contractor or subcontractor on file with either the Secretary of State or the Contractors' State License Board.
(ii) If the contractor or subcontractor has no address on file with the Secretary of State or the Contractors' State License Board, the address of the site of the public work. (3) The stop order shall be effective immediately upon service and shall be subject to appeal by the party contracting with the unregistered contractor or subcontractor, by the unregistered contractor or subcontractor, or both. The appeal, hearing, and any further review of the hearing decision shall be governed by the procedures, time limits, and other requirements specified in subdivision (a) of Section 238.1. 200

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(4) Any employee of an unregistered contractor or subcontractor who is affected by a work stoppage ordered by the commissioner pursuant to this subdivision shall be paid at his or her regular hourly prevailing wage rate by that employer for any hours the employee would have worked but for the work stoppage, not to exceed 10 days.
(k) Failure of a contractor or subcontractor, owner, director, officer, or managing agent of the contractor or subcontractor to observe a stop order issued and served upon him or her pursuant to subdivision (j) is guilty of a misdemeanor punishable by imprisonment in county jail not exceeding 60 days or by a fine not exceeding ten thousand dollars ($10,000), or both.
(l) This section shall apply to any bid proposal submitted on or after March 1, 2015, and any contract for public work entered into on or after April 1, 2015. This section shall also apply to the performance of any public work, as defined in this chapter, on or after January 1, 2018, regardless of when the contract for public work was entered.
(m) Penalties received pursuant to this section shall be deposited in the State Public Works Enforcement Fund established by Section 1771.3 and shall be used only for the purposes specified in that section. (n) This section shall not apply to work performed on a public works project of twenty -five thousand dollars ($25,000) or less when the project is for construction, alteration, demolition, installation, or repair work or to work performed on a public works project of fifteen thousand dollars ($15,000) or less when the project is for maintenance work.

Section 1771.4. Additional requirements when bidding and awarding public works contracts

(a) All of the following are applicable to all public works projects that are otherwise subject to the requirements of this chapter:
(1) The call for bids and contract documents shall specify that the project is subject to compliance monitoring and enforcement by the Department of Industrial Relations. (2) The awarding body shall post or require the prime contractor to post job site notices, as prescribed by regulation.
(3) Each contractor and subcontractor shall furnish the records specified in Section 1776 directly to the Labor Commissioner, in the following manner:
(A) At least monthly or more frequently if specified in the contract with the awarding body. (B) In a format prescribed by the Labor Commissioner.
(4) If the contractor or subcontractor is not registered pursuant to Section 1725.5 and is performing work on a project for which registration is not required because of subdivision (f) of Section 1725.5, the unregistered contractor or subcontractor is not required to furnish the records specified in Section 1776 directly to the Labor Commissioner but shall retain the records specified in Section 1776 for at least three years after completion of the work.
(5) The department shall undertake those activities it deems necessary to monitor and enforce compliance with prevailing wage requirements.
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(b) The Labor Commissioner may exempt a public works project from compliance with all or part of the requirements of subdivision (a) if either of the following occurs:
(1) The awarding body has enforced an approved labor compliance program, as defined in Section 1771.5, on all public works projects under its authority, except those deemed exempt pursuant to subdivision (a) of Section 1771.5, continuously since December 31, 2011.
(2) The awarding body has entered into a collective bargaining agreement that binds all contractors performing work on the project and that includes a mechanism for resolving disputes about the payment of wages. (c) The requirements of paragraph (1) of subdivision (a) shall only apply to contracts for public works projects awarded on or after January 1, 2015.
(d) The requirements of paragraph (3) of subdivision (a) shall apply to all contracts for public work, whether new or ongoing, on or after January 1, 2016.

Section 1775. Penalties for violations

(a)(1) The contractor and any subcontractor under the contractor shall, as a penalty to the state or political subdivision on whose behalf the contract is made or awarded, forfeit not more than two hundred dollars ($200) for each calendar day, or portion thereof, for each worker paid less than the prevailing wage rates as determined by the director for the work or craft in which the worker is employed for any public work done under the contract by the contractor or, except as provided in subdivision (b), by any subcontractor under the contractor.
(2)(A) The amount of the penalty shall be determined by the Labor Commissioner based on consideration of both of the following:
(i) Whether the failure of the contractor or subcontractor to pay the correct rate of per diem wages was a good faith mistake and, if so, the error was promptly and voluntarily corrected when brought to the attention of the contractor or subcontractor.
(ii) Whether the contractor or subcontractor has a prior record of failing to meet its prevailing wage obligations.
(B)(i) The penalty may not be less than forty dollars ($40) for each calendar day, or portion thereof, for each worker paid less than the prevailing wage rate, unless the failure of the contractor or subcontractor to pay the correct rate of per diem wages was a good faith mistake and, if so, the error was promptly and voluntarily corrected when brought to the attention of the contractor or subcontractor. (ii) The penalty may not be less than eighty dollars ($80) for each calendar day, or portion thereof, for each worker paid less than the prevailing wage rate, if the contractor or subcontractor has been assessed penalties within the previous three years for failing to meet its prevailing wage obligations on a separate contract, unless those penalties were subsequently withdrawn or overturned. (iii) The penalty may not be less than one hundred twenty dollars ($120) for each calendar day, or portion thereof, for each worker paid less than the prevailing wage rate, if the Labor Commissioner determines that the violation was willful, as defined in subdivision (c) of Section 1777.1. (C) If the amount due under this section is collected from the contractor or subcontractor, any outstanding wage claim under Chapter 1 (commencing with Section 1720) of Part 7 of Division 2 against that contractor 202

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or subcontractor shall be satisfied before applying that amount to the penalty imposed on that contractor or subcontractor pursuant to this section.
(D) The determination of the Labor Commissioner as to the amount of the penalty shall be reviewable only for abuse of discretion.
(E) The difference between the prevailing wage rates and the amount paid to each worker for each calendar day or portion thereof for which each worker was paid less than the prevailing wage rate shall be paid to each worker by the contractor or subcontractor, and the body awarding the contract shall cause to be inserted in the contract a stipulation that this section will be complied with. (b) If a worker employed by a subcontractor on a public works project is not paid the general prevailing rate of per diem wages by the subcontractor, the prime contractor of the project is not liable for any penalties under subdivision (a) unless the prime contractor had knowledge of that failure of the subcontractor to pay the specified prevailing rate of wages to those workers or unless the prime contractor fails to comply with all of the following requirements:
(1) The contract executed between the contractor and the subcontractor for the performance of work on the public works project shall include a copy of the provisions of this section and Sections 1771, 1776, 1777.5, 1813, and 1815.
(2) The contractor shall monitor the payment of the specified general prevailing rate of per diem wages by the subcontractor to the employees, by periodic review of the certified payroll records of the subcontractor. (3) Upon becoming aware of the failure of the subcontractor to pay his or her workers the specified prevailing rate of wages, the contractor shall diligently take corrective action to halt or rectify the failure, including, but not limited to, retaining sufficient funds due the subcontractor for work performed on the public works project. (4) Prior to making final payment to the subcontractor for work performed on the public works project, the contractor shall obtain an affidavit signed under penalty of perjury from the subcontractor that the subcontractor has paid the specified general prevailing rate of per diem wages to his or her employees on the public works project and any amounts due pursuant to Section 1813. (c) The Division of Labor Standards Enforcement shall notify the contractor on a public works project within 15 days of the receipt by the Division of Labor Standards Enforcement of a complaint of the failure of a subcontractor on that public works project to pay workers the general prevailing rate of per diem wages.

Section 1776. Payroll records; retention; inspection; redacted information; agencies entitled to receive nonredacted copies of certified records; noncompliance penalties; rules

(a) Each contractor and subcontractor shall keep accurate payroll records, showing the name, address, social security number, work classification, straight time and overtime hours worked each day and week, and the actual per diem wages paid to each journey man, apprentice, worker, or other employee employed by him or her in connection with the public work. Each payroll record shall contain or be verified by a written declaration that it is made under penalty of perjury, stating both of the following:
(1) The information contained in the payroll record is true and correct. (2) The employer has complied with the requirements of Sections 1771 , 1811, and 1815 for any work performed by his or her employees on the public works project. 203

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(b) The payroll records enumerated under subdivision (a) shall be certified and shall be available for inspection at all reasonable hours at the principal office of the contractor on the following basis:
(1) A certified copy of an employee's payroll record shall be made available for inspection or furnished to the employee or his or her authorized representative on request. (2) A certified copy of all payroll records enumerated in subdivision (a) shall be made available for inspection or furnished upon request to a representative of the body awarding the contract and the Division of Labor Standards Enforcement of the Department of Industrial Relations. (3) A certified copy of all payroll records enumerated in subdivision (a) shall be made available upon request by the public for inspection or for copies thereof. However, a request by the public shall be made through either the body awarding the contract or the Division of Labor Standards Enforcement. If the requested payroll records have not been provided pursuant to paragraph (2), the requesting party shall, prior to being provided the records, reimburse the costs of preparation by the contractor, subcontractors, and the entity through which the request was made. The public may not be given access to the records at the principal office of the contractor.
(c) Unless required to be furnished directly to the Labor Commissioner in accordance with paragraph (3) of subdivision (a) of Section 1771.4, the certified payroll records shall be on forms provided by the Division of Labor Standards Enforcement or shall contain the same information as the forms provided by the division.

The payroll records may consist of printouts of payroll data that are maintained as computer records, if the printouts contain the same information as the forms provided by the division and the printouts are verified in the manner specified in subdivision (a).
(d) A contractor or subcontractor shall file a certified copy of the records enumerated in subdivision (a) with the entity that requested the records within 10 days after receipt of a written request. (e) Except as provided in subdivision (f), any copy of records made available for inspection as copies and furnished upon request to the public or any public agency by the awarding body or the Division of Labor Standards Enforcement shall be marked or obliterated to prevent disclosure of an individual's name, address, and social security number. The name and address of the contractor awarded the contract or the subcontractor performing the contract shall not be marked or obliterated. Any copy of records made available for inspection by, or furnished to, a multiemployer Taft -Hartley trust fund ( 29 U.S.C. Sec. 186(c)(5) ) that requests the records for the purposes of allocating contributions to participants shall be marked or obliterated only to prevent disclosure of an individual's full social security number, but shall provide the last four digits of the social security number. Any copy of records made available for inspection by, or furnished to, a joint labor - management committee established pursuant to the federal Labor Management Cooperation Act of 1978 (29 U.S.C. Sec. 175a) shall be marked or obliterated only to prevent disclosure of an individual's social security number.
(f)(1) Notwithstanding any other provision of law, agencies that are included in the Joint Enforcement Strike Force on the Underground Economy established pursuant to Section 329 of the Unemployment Insurance Code and other law enforcement agencies investigating violations of law shall, upon request, be provided nonredacted copies of certified payroll records. Any copies of records or certified payroll made available for inspection and furnished upon request to the public by an agency included in the Joint Enforcement Strike Force on the Underground Economy or to a law enforcement agency investigating a violation of law shall be marked or redacted to prevent disclosure of an individual's name, address, and social security number. 204

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(2) An employer shall not be liable for damages in a civil action for any reasonable act or omission taken in good faith in compliance with this subdivision.
(g) The contractor shall inform the body awarding the contract of the location of the records enumerated under subdivision (a), including the street address, city, and county, and shall, within five working days, provide a notice of a change of location and address.
(h) The contractor or subcontractor has 10 days in which to comply subsequent to receipt of a written notice requesting the records enumerated in subdivision (a). In the event that the contractor or subcontractor fails to comply within the 10-day period, he or she shall, as a penalty to the state or political subdivision on whose behalf the contract is made or awarded, forfeit one hundred dollars ($100) for each cal endar day, or portion thereof, for each worker, until strict compliance is effectuated. Upon the request of the Division of Labor Standards Enforcement, these penalties shall be withheld from progress payments then due. A contractor is not subject to a penalty assessment pursuant to this section due to the failure of a subcontractor to comply with this section.
(i) The body awarding the contract shall cause to be inserted in the contract stipulations to effectuate this section.
(j) The director shall adopt rules consistent with the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code ) and the Information Practices Act of 1977 (Title 1.8 (commencing with Section 1798) of Part 4 of Division 3 of the Civil Code) governing the release of these records, including the establishment of reasonable fees to be charged for reproducing copies of records required by this section.

Section 1777.5. Employment of registered apprentices; wages; standards; number; apprenticeable craft or trade; exemptions; contributions; compliance program

(a)(1) This chapter does not prevent the employment upon public works of properly registered apprentices who are active participants in an approved apprenticeship program. (2) For purposes of this chapter, “apprenticeship program” means a program under the jurisdiction of the California Apprenticeship Council established pursuant to Section 3070. (b)(1) Every apprentice employed upon public works shall be paid the prevailing rate of per diem wages for apprentices in the trade to which he or she is registered and shall be employed only at the work of the craft or trade to which he or she is registered.
(2) Unless otherwise provided by a collective bargaining agreement, when a contractor requests the dispatch of an apprentice pursuant to this section to perform work on a public works project and requires the apprentice to fill out an application or underg o testing, training, an examination, or other preemployment process as a condition of employment, the apprentice shall be paid for the time spent on the required preemployment activity, including travel time to and from the required activity, if any, at the prevailing rate of per diem wages for apprentices in the trade to which he or she is registered. Unless otherwise provided by a collective bargaining agreement, a contractor is not required to compensate an apprentice for the time spent on preemployment activities if the apprentice is required to take a preemployment drug or alcohol test and he or she fails to pass that test.
(c) Only apprentices, as defined in Section 3077, who are in training under apprenticeship standards that have been approved by the Chief of the Division of Apprenticeship Standards and who are parties to written 205

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apprentice agreements under Chapter 4 (commencing with Section 3070) of Division 3 are eligible to be employed at the apprentice wage rate on public works. The employment and training of each apprentice shall be in accordance with either of the following:
(1) The apprenticeship standards and apprentice agreements under which he or she is training. (2) The rules and regulations of the California Apprenticeship Council. (d) If the contractor to whom the contract is awarded by the state or any political subdivision, in performing any of the work under the contract, employs workers in any apprenticeable craft or trade, the contractor shall employ apprentices in at least the ratio set forth in this section and may apply to any apprenticeship program in the craft or trade that can provide apprentices to the site of the public work for a certificate approving the contractor under the apprenticeship standards for the employment and training of apprentices in the area or industry affected. However, the decision of the apprenticeship program to approve or deny a certificate shall be subject to review by the Administrator of Apprenticeship. The apprenticeship program or programs, upon approving the contractor, shall arrange for the dispatch of apprentices to the contractor. A contractor covered by an apprenticeship program's standards shall not be required to submit any additional application in order to include additional public works contracts under that program. “Apprenticeable craft or trade,” as used in this section, means a craft or trade determined as an apprenticeable occupation in accordance with rules and regulations prescribed by the California Apprenticeship Council. As used in this section, “contractor” includes any subcontractor under a contractor who performs any public works not excluded by subdivision (o).
(e) Before commencing work on a contract for public works, every contractor shall submit contract award information to an applicable apprenticeship program that can supply apprentices to the site of the public work.

The information submitted shall include an estimate of journeyman hours to be performed under the contract, the number of apprentices proposed to be employed, and the approximate dates the apprentices would be employed. A copy of this information shall also be submitted to the awarding body, i f requested by the awarding body. Within 60 days after concluding work on the contract, each contractor and subcontractor shall submit to the awarding body, if requested, and to the apprenticeship program a verified statement of the journeyman and apprentice hours performed on the contract. The information under this subdivision shall be public. The apprenticeship programs shall retain this information for 12 months. (f) The apprenticeship program supplying apprentices to the area of the site of the public work shall ensure equal employment and affirmative action in apprenticeship for women and minorities. (g) The ratio of work performed by apprentices to journeymen employed in a particular craft or trade on the public work may be no higher than the ratio stipulated in the apprenticeship standards under which the apprenticeship program operates if the contractor agrees to be bound by those standards. However, except as otherwise provided in this section, in no case shall the ratio be less than one hour of apprentice work for every five hours of journeyman work.
(h) This ratio of apprentice work to journeyman work shall apply during any day or portion of a day when any journeyman is employed at the jobsite and shall be computed on the basis of the hours worked during the day by journeymen so employed. Any work performed by a journeyman in excess of eight hours per day or 40 hours per week shall not be used to calculate the ratio. The contractor shall employ apprentices for the number of hours computed as above before the end of the contract or, in the case of a s ubcontractor, before the end of the subcontract. However, the contractor shall endeavor, to the greatest extent possible, to employ apprentices during the same time period that the journeymen in the same craft or trade are employed at the jobsite. When an hourly apprenticeship ratio is not feasible for a particular craft or trade, the Administrator 206

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of Apprenticeship, upon application of an apprenticeship program, may order a minimum ratio of not less than one apprentice for each five journeymen in a craft or trade classification. (i) A contractor covered by this section who has agreed to be covered by an apprenticeship program's standards upon the issuance of the approval certificate, or who has been previously approved for an apprenticeship program in the craft or trade, shall employ the number of apprentices or the ratio of apprentices to journeymen stipulated in the applicable apprenticeship standards, but in no event less than the 1 -to-5 ratio required by subdivision (g).
(j) Upon proper showing by a contractor that he or she employs apprentices in a particular craft or trade in the state on all of his or her contracts on an annual average of not less than one hour of apprentice work for every five hours of labor performed by journeymen, the Administrator of Apprenticeship may grant a certificate exempting the contractor from the 1-to-5 hourly ratio, as set forth in this section for that craft or trade. (k) An apprenticeship program has the discretion to grant to a participating contractor or contractor association a certificate, which shall be subject to the approval of the Administrator of Apprenticeship, exempting the contractor from the 1-to-5 ratio set forth in this section when it finds that any one of the following conditions is met:
(1) Unemployment for the previous three-month period in the area exceeds an average of 15 percent. (2) The number of apprentices in training in the area exceeds a ratio of 1 to 5. (3) There is a showing that the apprenticeable craft or trade is replacing at least one-thirtieth of its journeymen annually through apprenticeship training, either on a statewide basis or on a local basis. (4) Assignment of an apprentice to any work performed under a public works contract would create a condition that would jeopardize his or her life or the life, safety, or property of fellow employees or the public at large, or the specific task to which th e apprentice is to be assigned is of a nature that training cannot be provided by a journeyman.
(l) If an exemption is granted pursuant to subdivision (k) to an organization that represents contractors in a specific trade from the 1-to-5 ratio on a local or statewide basis, the member contractors shall not be required to submit individual applications for approval to local joint apprenticeship committees, if they are already covered by the local apprenticeship standards.
(m)(1) A contractor to whom a contract is awarded, who, in performing any of the work under the contract, employs journeymen or apprentices in any apprenticeable craft or trade shall contribute to the California Apprenticeship Council the same amount that the director determines is the prevailing amount of apprenticeship training contributions in the area of the public works site. A contractor may take as a credit for payments to the council any amounts paid by the contractor to an approved apprenticeship program that can supply apprentices to the site of the public works project. The contractor may add the amount of the contributions in computing his or her bid for the contract. (2)(A) At the conclusion of the 2002 -03 fiscal year and each fiscal year thereafter, the California Apprenticeship Council shall distribute training contributions received by the council under this subdivision, less the expenses of the Department of Indust rial Relations for administering this subdivision, by making grants to approved apprenticeship programs for the purpose of training apprentices. The grant funds shall be distributed as follows:
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(i) If there is an approved multiemployer apprenticeship program serving the same craft or trade and geographic area for which the training contributions were made to the council, a grant to that program shall be made.
(ii) If there are two or more approved multiemployer apprenticeship programs serving the same craft or trade and county for which the training contributions were made to the council, the grant shall be divided among those programs based on the number of apprentices from that county registered in each program. (iii) All training contributions not distributed under clauses (i) and (ii) shall be used to defray the future expenses of the Department of Industrial Relations for the administration and enforcement of apprenticeship and preapprenticeship standards and requirements under this code. (B) An apprenticeship program shall only be eligible to receive grant funds pursuant to this subdivision if the apprenticeship program agrees, prior to the receipt of any grant funds, to keep adequate records that document the expenditure of grant funds and to make all records available to the Department of Industrial Relations so that the Department of Industrial Relations is able to verify that grant funds were used s olely for training apprentices. For purposes of this subparagraph, adequate records incl ude, but are not limited to, invoices, receipts, and canceled checks that account for the expenditure of grant funds. This subparagraph shall not be deemed to require an apprenticeship program to provide the Department of Industrial Relations with more documentation than is necessary to verify the appropriate expenditure of grant funds made pursuant to this subdivision.
(C) The Department of Industrial Relations shall verify that grants made pursuant to this subdivision are used solely to fund training apprentices. If an apprenticeship program is unable to demonstrate how grant funds are expended or if an apprenticeship program is found to be using grant funds for purposes other than training apprentices, then the apprenticeship program shall not be eligible to recei ve any future grant pursuant to this subdivision and the Department of Industrial Relations may initiate th e process to rescind the registration of the apprenticeship program.
(3) All training contributions received pursuant to this subdivision shall be deposited in the Apprenticeship Training Contribution Fund, which is hereby created in the State Treasury. Upon appropriation by the Legislature, all moneys in the Apprenticeship Training Contribution Fund shall be used for the purpose of carrying out this subdivision and to pay the expenses of the Department of Industrial Relations. (n) The body awarding the contract shall cause to be inserted in the contract stipulations to effectuate this section. The stipulations shall fix the responsibility of compliance with this section for all apprenticeable occupations with the prime contractor.
(o) This section does not apply to contracts of general contractors or to contracts of specialty contractors not bidding for work through a general or prime contractor when the contracts of general contractors or those specialty contractors involve less than thirty thousand dollars ($30,000). (p) An awarding body that implements an approved labor compliance program in accordance with subdivision (b) of Section 1771.5 may, with the approval of the director, assist in the enforcement of this section under the terms and conditions prescribed by the director.

Section 1813. Forfeiture for violations; contract stipulation; report of violations

The contractor or subcontractor shall, as a penalty to the state or political subdivision on whose behalf the contract is made or awarded, forfeit twenty- five dollars ($25) for each worker employed in the execution of 208

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the contract by the respective contractor or subcontractor for each calendar day during which the worker is required or permitted to work more than 8 hours in any one calendar day and 40 hours in any one calendar week in violation of the provisions of this article. In awarding any contract for public work, the awarding body shall cause to be inserted in the contract a stipulation to this effect. The awarding body shall take cognizance of all violations of this article committed in the course of the executi on of the contract, and shall report them to the Division of Labor Standards Enforcement.

Section 1815. Overtime

Notwithstanding the provisions of Sections 1810 to 1814, inclusive, of this code, and notwithstanding any stipulation inserted in any contract pursuant to the requirements of said sections, work performed by employees of contractors in excess of 8 hours per day, and 40 hours during any one week, shall be permitted upon public work upon compensation for all hours worked in excess of 8 h ours per day at not less than 1 ½ times the basic rate of pay.
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ATTACHMENT NO. 2

CALIFORNIA PUBLIC CONTRACT CODE SECTION 9204

Section 9204. Legislative findings and declarations regarding timely and complete payment of contractors for public works projects; claims process (Eff: January 1, 2017)

(a) The Legislature finds and declares that it is in the best interests of the state and its citizens to ensure that all construction business performed on a public works project in the state that is complete and not in dispute is paid in full and in a timely manner.
(b) Notwithstanding any other law, including, but not limited to, Article 7.1 (commencing with Section 10240) of Chapter 1 of Part 2, Chapter 10 (commencing with Section 19100) of Part 2, and Article 1.5 (commencing with Section 20104) of Chapter 1 of Part 3, this section shall apply to any claim by a contractor in connection with a public works project.
(c) For purposes of this section:
(1) “Claim” means a separate demand by a contractor sent by registered mail or certified mail with return receipt requested, for one or more of the following:
(A) A time extension, including, without limitation, for relief from damages or penalties for delay assessed by a public entity under a contract for a public works project. (B) Payment by the public entity of money or damages arising from work done by, or on behalf of, the contractor pursuant to the contract for a public works project and payment for which is not otherwise expressly provided or to which the claimant is not otherwise entitled. (C) Payment of an amount that is disputed by the public entity. (2) “Contractor” means any type of contractor within the meaning of Chapter 9 (commencing with Section 7000) of Division 3 of the Business and Professions Code who has entered into a direct contract with a public entity for a public works project.
(3)(A) “Public entity” means, without limitation, except as provided in subparagraph (B), a state agency, department, office, division, bureau, board, or commission, the California State University, the University of California, a city, including a charter city, county, including a charter county, city and county, including a charter city and county, district, special district, public authority, political subdivision, public corporation, or nonprofit transit corporation wholly owned by a public agency and f ormed to carry out the purposes of the public agency.
(B) “Public entity” shall not include the following:
(i) The Department of Water Resources as to any project under the jurisdiction of that department. (ii) The Department of Transportation as to any project under the jurisdiction of that department. (iii) The Department of Parks and Recreation as to any project under the jurisdiction of that department. (iv) The Department of Corrections and Rehabilitation with respect to any project under its jurisdiction pursuant to Chapter 11 (commencing with Section 7000) of Title 7 of Part 3 of the Penal Code. 210

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(v) The Military Department as to any project under the jurisdiction of that department. (vi) The Department of General Services as to all other projects. (vii) The High-Speed Rail Authority.
(4) “Public works project” means the erection, construction, alteration, repair, or improvement of any public structure, building, road, or other public improvement of any kind. (5) “Subcontractor” means any type of contractor within the meaning of Chapter 9 (commencing with Section 7000) of Division 3 of the Business and Professions Code who either is in direct contract with a contractor or is a lower tier subcontractor.
(d)(1)(A) Upon receipt of a claim pursuant to this section, the public entity to which the claim applies shall conduct a reasonable review of the claim and, within a period not to exceed 45 days, shall provide the claimant a written statement identifying w hat portion of the claim is disputed and what portion is undisputed. Upon receipt of a claim, a public entity and a contractor may, by mutual agreement, extend the time period provided in this subdivision.
(B) The claimant shall furnish reasonable documentation to support the claim. (C) If the public entity needs approval from its governing body to provide the claimant a written statement identifying the disputed portion and the undisputed portion of the claim, and the governing body does not meet within the 45 days or within the mutu ally agreed to extension of time following receipt of a claim sent by registered mail or certified mail, return receipt requested, the public entity shall have up to three days following the next duly publicly noticed meeting of the governing body after the 45-day period, or extension, expires to provide the claimant a written statement identifying the disputed portion and the undisputed portion. (D) Any payment due on an undisputed portion of the claim shall be processed and made within 60 days after the public entity issues its written statement. If the public entity fails to issue a written statement, paragraph (3) shall apply.
(2)(A) If the claimant disputes the public entity’s written response, or if the public entity fails to respond to a claim issued pursuant to this section within the time prescribed, the claimant may demand in writing an informal conference to meet and conf er for settlement of the issues in dispute. Upon receipt of a demand in writing sent by registered mail or certified mail, return receipt requested, the public entity shall schedule a meet and confer conference within 30 days for settlement of the dispute. (B) Within 10 business days following the conclusion of the meet and confer conference, if the claim or any portion of the claim remains in dispute, the public entity shall provide the claimant a written statement identifying the portion of the claim that remains in dispute and the portion that is undisputed. Any payment due on an undisputed portion of the claim shall be processed and made within 60 days after the public entity issues its written statement. Any disputed portion of the claim, as identified by the contractor in writing, shall be submitted to nonbinding mediation, with the public entity and the claimant sharing the associated costs equally. The public entity and claimant shall mutually agree to a mediator within 10 business days after the disputed portion of the claim has been identified in writing. If the parties cannot agree upon a mediator, each party shall select a mediator and those mediators shall select a qualified neutral third party to mediate with regard to the disputed portion of the claim. Each party shall bear the fees and costs charged by its respective mediator in connection with the selection of the neutral mediator. If mediation is unsuccessful, the parts of the claim remaining in dispute shall be subject to applicable procedures outside this section. 211

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(C) For purposes of this section, mediation includes any nonbinding process, including, but not limited to, neutral evaluation or a dispute review board, in which an independent third party or board assists the parties in dispute resolution through negotiation or by issuance of an evaluation. Any mediation utilized shall conform to the timeframes in this section.
(D) Unless otherwise agreed to by the public entity and the contractor in writing, the mediation conducted pursuant to this section shall excuse any further obligation under Section 20104.4 to mediate after litigation has been commenced.
(E) This section does not preclude a public entity from requiring arbitration of disputes under private arbitration or the Public Works Contract Arbitration Program, if mediation under this section does not resolve the parties’ dispute.
(3) Failure by the public entity to respond to a claim from a contractor within the time periods described in this subdivision or to otherwise meet the time requirements of this section shall result in the claim being deemed rejected in its entirety. A claim that is denied by reason of the public entity’s failure to have responded to a claim, or its failure to otherwise meet the time requirements of this section, shall not constitute an adverse finding with regard to the merits of the claim or the responsibility or qualifications of the claimant. (4) Amounts not paid in a timely manner as required by this section shall bear interest at 7 percent per annum. (5) If a subcontractor or a lower tier subcontractor lacks legal standing to assert a claim against a public entity because privity of contract does not exist, the contractor may present to the public entity a claim on behalf of a subcontractor or lower tier subcontractor. A subcontractor may request in writing, either on their own behalf or on behalf of a lower tier subcontractor, that the contractor present a claim for work which was performed by the subcontractor or by a lower tier subcontractor on behal f of the subcontractor. The subcontractor requesting that the claim be presented to the public entity shall furnish reasonable documentation to support the claim. Within 45 days of receipt of this written request, the contractor shall notify the subcontrac tor in writing as to whether the contractor presented the claim to the public entity and, if the original contractor did not present the claim, provide the subcontractor with a statement of the reasons for not having done so. (e) The text of this section or a summary of it shall be set forth in the plans or specifications for any public works project that may give rise to a claim under this section. (f) A waiver of the rights granted by this section is void and contrary to public policy, provided, however, that (1) upon receipt of a claim, the parties may mutually agree to waive, in writing, mediation and proceed directly to the commencement of a civi l action or binding arbitration, as applicable; and (2) a public entity may prescribe reasonable change order, claim, and dispute resolution procedures and requirements in addition to the provisions of this section, so long as the contractual provisions do not conflict with or otherwise impair the timeframes and procedures set forth in this section. (g) This section applies to contracts entered into on or after January 1, 2017. (h) Nothing in this section shall impose liability upon a public entity that makes loans or grants available through a competitive application process, for the failure of an awardee to meet its contractual obligations. (i) This section shall remain in effect only until January 1, 2027, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2027, deletes or extends that date. 212
Agenda Item
City Council
Item #: 3.11. 8/12/2025 File #: 25-0448
TO: Honorable Mayor and Members of the City Council
THRU: Jarad Hildenbrand, City Manager
FROM: Christopher Cash, Public Works Director

1. SUBJECT
Award of Contract to Tess Electric Inc. for electrical on-call services.

2. SUMMARY
Informal bids were solicited for electrical on-call services for critical water infrastructure systems. Tess Electric Inc., of Riverside is the apparent low bidder in the amount of $210,000. This contract provides for on-call and emergency electrical services to support the continued efficiency and reliability of the City’s water system.

3. RECOMMENDED ACTION
Approve the contract with Tess Electric Inc. in the amount of $210,000 for electrical on-call services; and authorize the Mayor and City Clerk to execute on behalf of the City.

4. FISCAL IMPACT
The expense for this contract is $70,000 and will be funded through Water (600):
600-5802-56102 Repair/Maint Services-Facility
This contract is for 3 years totaling $210,000.00, payable in $70,000 annual installments. Future installments will be requested in conjunction with the annual operating budget.

5. STRATEGIC PLAN GOALS
Goal 5: Improve Infrastructure, Mobility, and Technology

6. DISCUSSION AND BACKGROUND
The Public Works Department operates critical water infrastructure such as pump stations, wells, and emergency power generators that operate continuously. These facilities contain electrical components such as breakers, electrical panels, automatic transfer switches, variable frequency drives, and motors. The facilities must run properly without interruption and necessary repairs to electrical components must be expedited to ensure continuous water service.

Through an informal bid process, staff solicited bids from four reputable companies for electrical on- call services, and two bids were received:

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Item #: 3.11. 8/12/2025 File #: 25-0448

1. Tess Electric Inc., Riverside, CA $210,000

2. Halcyon Electric Inc., Placentia, CA $220,500
Two contractors, Sulzer Electro Mechanical Services Inc. of Colton and Electrical Service Solutions Inc. of Huntington Beach were non-responsive.

Tess Electric Inc. is the apparent responsive low bidder. The City has worked with Tess Electric Inc. in the past and has found them to be qualified and responsive to our needs. Therefore, the staff recommends that Tess Electric Inc. be awarded a contract in the amount of $210,000. The term of the contract is for three years with an annual installment of $70,000. If approved, this contract is effective on the date the agreement is executed and expires on June 30, 2028.

7. ATTACHMENTS
· Contract with Tess Electric Inc.
· Rating Summation
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Agenda Item
City Council
Item #: 3.11. 8/12/2025 File #: 25-0448
TO: Honorable Mayor and Members of the City Council
THRU: Jarad Hildenbrand, City Manager
FROM: Christopher Cash, Public Works Director

1. SUBJECT
Award of Contract to Tess Electric Inc. for electrical on-call services.

3. RECOMMENDED ACTION
Approve the contract with Tess Electric Inc. in the amount of $210,000 for electrical on-call services; and authorize the Mayor and City Clerk to execute on behalf of the City.

5. STRATEGIC PLAN GOALS
Goal 5: Improve Infrastructure, Mobility, and Technology

Through an informal bid process, staff solicited bids from four reputable companies for electrical on- call services, and two bids were received:

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215
Item #: 3.11. 8/12/2025 File #: 25-0448

1. Tess Electric Inc., Riverside, CA $210,000

2. Halcyon Electric Inc., Placentia, CA $220,500
Two contractors, Sulzer Electro Mechanical Services Inc. of Colton and Electrical Service Solutions Inc. of Huntington Beach were non-responsive.

7. ATTACHMENTS
· Contract with Tess Electric Inc.
· Rating Summation
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CONTRACT
[Electrical On-Call Services]

THIS CONTRACT (the “Contract”) is made and ente red into as of ___ ___________, 2025 (“Effective Date”) by and between the CITY OF ORANGE, a municipal corporation (“City”), and TESS ELECTRIC INC., a California corporation (“Contractor”), who agree as follows.

ARTICLE 1
Work Performed

a. For and in consideration of the payments and agreements hereinafter mentioned, to be made and performed by City, and under the conditions expressed in the two (2) bonds presented to City with this Contract and incorporated herein by this reference, Contractor hereby agrees to and shall do all the work and furnish all the labor, materials, tools and equipment, except such as are mentioned in the specifications to be furnished by City to Contractor, necessary to complete in good workmanship and substantial manner the work (the “Work”) described in:

(1) The latest edition of the "City of Orange Standard Plans and Specifications" (the “Orange Book”) with the term "Engineer," as used in the Orange Book and in this Contract, to specifically include the City Engineer (or designee);

(2) The "Standard Specifications for Public Works Construction ” (the “Greenbook”), and all amendments thereto, except the definition of “Subcontractor” in Section 1.2 (General – Terms and Definitions) of Part 1 (General Provisions) of the Greenbook, which is hereby amended in its entirety to read as follows: “Subcontractor – An individual, firm, or corporation having a direct contract with the Contractor for the performance of a part of the Work;”

(3) The “City of Orange Standard Special Provisions;”

(4) The Standard Plans; and

(5) Contractor’s Bid Proposal , which is on file with City’s Department of Public Works.

b. Contractor acknowledges that it has received the Plans from City and that a complete copy of the Plans are in its possession and are hereby specifically referred to and by such reference made a part hereof. The Orange Book, Greenbook and City of Orange Standard Special Provisions and Standard Plans are on file with City’s Public Works Director and are hereby specifically referred to and by such reference made a part hereof. Contractor hereby acknowledges that it has read, reviewed and understands the Plans, the Orange Book, the Greenbook, the Special Provisions, the Standard Plans, and the Encroachment Permit as they relate to the Work, all of which documents shall be referred to herein collectively as the “Plans and Specifications.”

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2 c. Contractor acknowledges the provisions of Chapter 8.28 of the Orange Municipal Code which requires, among other things, that Contractor utilize City’s exclusive solid waste hauler for the rental of bins for trash and debris removal and imposes mandatory recycling requirements for self-hauled construction and demolition waste. The terms and conditions set forth in this Contract shall control over any terms and conditions in the Plans and Specifications to the contrary.

d. The Work shall be performed in conformity with the Plans and Specifications and the Bid Proposal and all applicable laws, including any and all applicable federal and state labor laws and standards and applicable prevailing wage requirements and any and all state, federal and local statutes, regulations and ordinances relating to the protection of human health or the environment.

e. Unless and until otherwise notified in writing by City’s Public Works Director, City’s Senior Civil Engineer, Tuan Cao (“Authorized City Representative”), shall be the person to whom Contractor will report for the performance of the Work hereunder. It is understood that Contractor’s performance hereunder shall be under the direction and supervision of the Authorized City Representative or such other person as City’s Public Works Director may designate from time to time, that Contractor shall coordinate the Work hereunder with the Authorized City Representative to the extent required by the Authorized City Representative, a nd that all performances required hereunder by Contractor shall be performed to the satisfaction of the Authorized City Representative or City’s Public Works Director.

f. It is expressly agreed by and between the parties hereto that should there be any conflict between the terms of this instrument and Contractor’s Bid Proposal, then this instrument shall control and nothing herein shall be considered as an acceptance of the said terms of said Bid Proposal conflicting herewith.

ARTICLE 2
Commencement of Work

Contractor shall commence the Work provided for in this Contract within fifteen (15) days of the date of the issuance by City of a Notice to Proceed and diligently prosecute completion of the Work within thirty (30) calendar days from such date, unless legal extension is granted in accordance with the terms set forth in the Greenbook. Time is of the essence in this Contract.

Contractor shall do all things necessary and incidental to the prosecution of Contractor's Work.

ARTICLE 3
Compensation

Contractor agrees to receive and accept an amount not to exceed TWO HUNDRED TEN THOUSAND DOLLARS and 00/100 ($210,000.00) unless said amount is amended by Contract Change Order approved by the City, as compensation for furnishing all materials and doing all the Work contemplated and embraced in this Contract. Said compensation covers (1) all loss or damage arising out of the nature of the Work , from the acts of the elements; (2) any unforeseen 218
3 difficulties or obstructions which may arise or be encountered in the prosecution of the Work until its acceptance by City, other than as provided below ; (3) all risks of every description connected with the Work; (4) all expenses incurred by or in consequence of the suspension or discontinuance of the Work; and (5) well and faithfully completing the Work, and for the whole thereof, in the manner and according to the Plans and Specifications, and requirements of the Authorized City Representative under them . Retention amounts shall be withheld from progress payments as required by law unless Contractor provides securities in lieu of retention.

ARTICLE 4
Licenses

Contractor represents that it and any subcontractors it may engage, possess any and all licenses which are required under state or federal law to perform the Work contemplated by this Contract and that Contractor and subcontractors shall maintain all appropriate licenses, including a City of Orange business license, at its cost, during the performance of this Contract.

ARTICLE 5
Guarantees

a. Contractor guarantees the construction and installation of all Work included in the Plans and Specifications for which Contractor has been awarded this Contract.

b. Should any of the materials or equipment installed pursuant to this Contract prove defective or should the Work as a whole prove defective, due to faulty equipment, workmanship, materials furnished or methods of installations, or should said Work or any p art thereof fail to function properly, as designed, due to any of the above causes within twelve (12) months after the date on which said Work is accepted by City, Contractor shall make repairs and furnish such materials and equipment as are necessary to be furnished and installed within fifteen (15) calendar days after the receipt of a demand from City.

c. Said Work will be deemed defective within the meaning of this guarantee in the event that it fails to function as originally intended either by the Plans and Specifications of this Contract or by the manufacturer(s) of the equipment incorporated into the Work.

d. In the event repairs are not made within fifteen (15) calendar days after Contractor's receipt of a demand from City, City shall have the unqualified option to make any needed repairs or replacements itself or by any other contractor. Contractor shall re imburse City, upon demand, for all expenses incurred in restoring said Work to the condition contemplated in this Contract, including the cost of any equipment or materials replaced.

e. It is understood that emergency repairs may, by necessity, be made by City.

Therefore, when defective equipment, materials or workmanship result in emergency repairs by City, Contractor shall reimburse City, upon demand, for all expenses incurred. Emergency repairs will be deemed as those repairs determined by City’s Director of Public Works to be necessary due to an immediate detriment to the health, safety, welfare or convenience of the residents of City.
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4 ARTICLE 6
Water Quality

a. The Santa Ana Regional Water Quality Control Board (“RWQCB”) has issued National Pollutant Discharge Elimination System (“NPDES”) Permit No. R8 -2009-0030 (the “Permit”), which governs storm water and non -storm water discharges resulting from municipal activities performed by City or its contractors. In order to comply with the Permit requirements, the County of Orange has prepared a Drainage Area Management Plan (“DAMP”), containing Model Maintenance Procedures with Best Management Practices (“BMPs”) that City and its contractors must adhere to. The Model Maintenance Procedures contain pollution prevention and source control techniques to minimize the impact of those activities upon dry -weather urban runoff, storm water runoff, and receiving water quality. Examples include: wash water from cleaning of sidewalks or parking lots must be collected and disposed of in the sewer or landscaped areas.

b. The Permit, the DAMP and the Model Maintenance Procedures are on file in the office of City’s Director of Public Works. Contractor hereby acknowledges that it has read, reviewed and understands the Permit, the DAMP and the Model Maintenance Procedures, as they relate to the Work and hereby shall perform the Work in conformance therewith.

ARTICLE 7
Independent Contractor; Contractor not Agent

a. At all times during the term of this Contract, Contractor shall be an independent contractor and not an employee of City. City shall have the right to control Contractor only insofar as the result of Contractor’s services rendered pursuant to this Contrac t. City shall not have the right to control the means by which Contractor accomplishes services rendered pursuant to this Contract. Contractor shall, at its sole cost and expense, furnish all facilities, materials and equipment which may be required f or furnishing services pursuant to this Contract. Contractor shall be solely responsible for, and shall indemnify, defend and save City harmless from all matters relating to the payment of its subcontractors, agents and employees, including compliance wit h social security, withholding and all other wages, salaries, benefits, taxes, exactions, and regulations of any nature whatsoever. Contractor acknowledges that Contractor and any subcontractors, agents or employees employed by Contractor shall not, under any circumstances, be considered employees of City, and that they shall not be entitled to any of the benefits or rights afforded employees of City, including, but not limited to, sick leave, vacation leave, holiday pay, Public Employees Retirement System benefits, or health, life, dental, long -term disability or workers' compensation insurance benefits.

b. Except as City may specify in writing, Contractor shall have no authority, express or implied, to act on behalf of City in any capacity whatsoever as an agent. Contractor shall have no authority, express or implied, to bind City to any obligation whatsoever.

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5 ARTICLE 8
Public Work; Prevailing Wage

a. The Work which is the subject of this Contract is a “public work,” as that term is defined in Section 1720 of the California Labor Code, for which prevailing wages must be paid.

To the extent Contractor’s employees will perform any work that falls within any of the classifications for which the Department of Labor Relations of the State of California promulgates prevailing wage determinations, Contractor hereby agrees that Contractor, and any subcontractor under it, shall pay not less than the specified prevail ing rates of wages to all such workers . The general prevailing wage determinations for crafts can be located on the website of the Department of Industrial Relations ( www.dir.ca.gov/DLSR). Additionally, to perform work under this Contract, Contractor must meet all State registration requirements and criteria, including project compliance monitoring.

b. Attached hereto as Attachment No. 1 and incorporated herein by this reference is a copy of the provisions of Sections 1725.5, 1771, 1771.1, 1771.4, 1775, 1776, 1777.5, 1813 and 1815 of the California Labor Code. Contractor hereby acknowledges that it has read, reviewed and understands those provisions of the Labor Code and shall prosecute and complete the Work under this Contract in strict compliance with all of those terms and provisions.

c. Contractor shall secure the payment of compensation to its employees in accordance with the provisions of Section 3700 of the California Labor Code. Accordingly, and as required by Section 1861 of the California Labor Code, Contractor hereby certifies as follows:

“I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for workers' compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the work of this contract.”

d. Contractor shall indemnify, protect, defend and hold harmless City and its officers, employees, contractors and agents, with counsel reasonably acceptable to City, from and against any and all loss, liability, damage, claim, cost, expense, and/or “increased costs” (including reasonable attorney’s fees, court and litigation costs, and fees of expert witnesses) which result or arise in any way from the noncompliance by Contractor of any applicable local, state and/or federal law, including, without limitation , any applicable federal and/or state labor laws (including, without limitation, the requirement to pay state prevailing wages). It is agreed by the parties that, in connection with the construction of the W ork which is the subject of this Contract, Contractor shall bear all risks of payment or non -payment of state prevailing wages. “Increased costs” as used in this paragraph shall have the meaning ascribed to it in Labor Code Section 1781, as the same may be enacted, adopted or amended from time t o time. The foregoing indemnity shall survive termination of this Contract.

ARTICLE 9
Equal Employment Opportunity

During the performance of this Contract, Contractor agrees as follows:

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6 a. Contractor shall not discriminate against any employee or applicant for employment because of race, color, religion, sex, national origin, mental or physical disability, or any other basis prohibited by applicable law. Contractor shall ensure that applicants are employed and that employees are treated during employment, without regard to their race, color, religion, sex, national origin, mental or physical disability, or any other basis prohibited by applicable law.

Such actions shall include, but not be limited to the following: employment, upgrading, demotion or transfer, recruitment or recruitment advertising, layoff or termination, rates of pay or other forms of compensation and selection for training, including apprenticeship. Contractor shall post in conspicuous places, available to employees and applicants for employment, a notice setting forth provisions of this non-discrimination clause.

b. Contractor shall, in all solicitations and advertisements for employees placed by, or on behalf of Contractor, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, national origin, men tal or physical disability, or any other basis prohibited by applicable law.

c. Contractor shall cause the foregoing paragraphs (a) and (b) to be inserted in all subcontracts for any Work covered by this Contract, provided that the foregoing provisions shall not apply to subcontracts for standard commercial supplies or raw materials.

ARTICLE 10
Conflicts of Interest

Contractor agrees that it shall not make, participate in the making, or in any way attempt to use its position as a contractor to influence any decision of City in which Contractor knows or has reason to know that Contractor, its officers, partners, or employees have a financial interest as defined in Section 87103 of the Government Code. Contractor further agrees that it shall not be eligible to work as the builder for any project for which the design work is part of this Contract.

ARTICLE 11
Indemnity

Contractor shall defend, indemnify and hold harmless City and its officers, officials, agents, and employees from and against:

a. Any and all claims, liabilities, losses, damages, penalties, costs or expenses (including reasonable attorneys' fees and court costs) which City may directly or indirectly sustain or suffer arising from or as a result of the death of any person or any acc ident, injury, loss or damage whatsoever caused to any person or the property of any person which shall occur on or adjacent to the real property which is the subject of this Contract, or in connection with performance of this Contract which may be direc tly or indirectly caused by the acts or omissions of Contractor or its officers, employees, contractors or agents, or as a consequence of any use, generation, manufacture, storage, disposal, release or threatened release of a hazardous waste or substance. Contractor shall not be responsible for (and such indemnity shall not apply to) any willful misconduct, negligence or breach of this Contract by City or its officers, officials, agents, and employees. The foregoing indemnity shall survive termination of this Contract. 222
7 b. Any and all claims under workers’ compensation acts and other employee benefit acts with respect to Contractor’s employees or Contractor’s subcontractor’s employees arising out of Contractor’s Work under this Contract, including any and all claims under any law pertaining to Contractor’s status as an independent contractor.

ARTICLE 12
Insurance

a. Contractor shall procure and maintain for the duration of this Contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the Work hereunder and the results of that Work by Contractor, its agents, representatives, employees or subcontractors. Any umbrella liability insurance that is provided as part of the general or automobile liability minimums set forth below shall be maintained for the duration of the Contract.

b. Contractor shall maintain the following minimum amount of insurance: the greater of either the limits set forth in (1) through (4), below; or all of the insurance coverage and/or limits carried by or available to Contractor.

(1) General Liability $2,000,000 per occurrence for bodily injury, personal injury and property damage. If
Commercial General Liability insurance
or other form with a general aggregate
limit is used, either the general aggregate
limit shall apply separately to this
project/location or the general aggregate
limit shall be twice the required
occurrence limit.

(2) Automobile Liability $1,000,000 per accident for bodily injury and property damage.

(3) Workers’ Compensation as required by the State of California.

(4) Employer’s Liability $1,000,000 per accident for bodily injury or disease.

c. Any insurance proceeds in excess of or broader than the minimum required coverage and/or minimum required limits which are applicable to a given loss shall be available to City. No representation is made that the minimum insurance requirements of this Contract are sufficient to cover the obligations of Contractor under this Contract.

d. Any deductibles or self -insured retentions must be declared to and approved by City. At the option of City, either: the insurer shall reduce or eliminate such deductibles or self - insured retentions with respect to City, its officers, officials, agents and employees; or Contractor shall provide a financial guarantee satisfactory to City guaranteeing payment of losses and related investigations, claim administration, and defense expenses. 223
8 e. Each policy of general liability and automotive liability insurance shall contain, or be endorsed to contain, the following provisions:

(1) City, its officers, officials, agents, and employees are declared to be additional insureds under the terms of the policy, with respect to liability arising out of automobiles owned, leased, hired or borrowed by or on behalf of Contractor (any auto), and with respect to liability arising out of Work or operations performed by or on behalf of Contractor, including materials, parts or equipment furnished in connection with such Work or operations. A policy endorsement to that effect shall be provided to City along with the certificate of insurance. In lieu of an endorsement, City will accept a copy of the policy(ies) which evidences that City is an additional insured as a contracting party. The minimum coverage required by Subsection 12.b, above, shall apply to City as an additional insured.

(2) For any claims related to this Contract, Contractor’s insurance coverage shall be primary insurance with respect to City, its officers, officials, agents and employees. Any insurance or self-insurance maintained by City, its officers, officials, agents and employees shall be excess of Contractor’s insurance and shall not contribute with it.

(3) Coverage shall not be canceled, except after thirty (30) days’ prior written notice has been provided to City.

f. Contractor shall furnish City with original certificates of insurance and endorsements effecting coverage required by this Article 12. The endorsements shall be on forms acceptable to City. All certificates and endorsements are to be received and approved by City before the Work commences. However, failure to do so shall not operate as a waiver of these insurance requirements. City reserves the right to require complete, certified copies of all required insurance policies, including endorsements effecting the coverage required by these specifications at any time.

g. All insurance procured and maintained by Contractor shall be issued by insurers admitted to conduct the pertinent line of insurance business in California and having a rating of Grade A or better and Class VII or better by the latest edition of Best Key Rating Guide.

h. Contractor shall immediately notify City if any required insurance lapses or is otherwise modified and cease performance of this Contract unless otherwise directed by City. In such a case, City may procure insurance or self-insure the risk and charge Contractor for such costs and any and all damages resulting therefrom by way of set-off from any sums owed Contractor.

i. Contractor agrees that in the event of loss due to any of the perils for which it has agreed to provide insurance, Contractor shall look solely to its insurance for recovery. Contractor hereby grants to City, on behalf of any insurer providing insurance t o either Contractor or City with respect to the services of Contractor herein, a waiver of any right to subrogation which any such insurer may acquire against City by virtue of the payment of any loss under such insurance.

The Workers’ Compensation pol icy shall be endorsed with a waiver of subrogation in favor of City for all Work performed by Contractor, its employees, agents and subcontractors. Contractor shall obtain any other endorsement that may be necessary to effect this waiver of subrogation. 224
9 j. Contractor shall require and verify that all subcontractors maintain insurance meeting all of the requirements stated herein.

ARTICLE 13
Termination

City, acting through its City Manager or designee, reserves the right to terminate this Contract for any reason by giving five (5) days’ written notice of intent to terminate to Contractor.

Upon receipt of notice, Contractor shall immediately cease work, unless the notice provides otherwise. Should City terminate this Contract, City shall pay Contractor for services satisfactorily provided and all allowable reimbursements incurred to the date of termination in compliance with this Contract, unless such termination shall be for cause, in which event City may withhold any disputed compensation. City shall not be liable for any claim of lost profits.

ARTICLE 14
Maintenance and Inspection of Records

In accordance with generally accepted accounting principles, Contractor and its subcontractors shall maintain reasonably full and complete books, documents, papers, accounting records and other information (collectively, the “records”) pertaining to the co sts of and completion of services performed under this Contract. During the term of this Contract and for a period of three (3) years after termination or completion of this Contract, City shall have the right to inspect and/or audit Contractor's records pertaining to the performance of this Contract at Contractor's office. Contractor shall make available all such records for inspection or audit at its offices during normal business hours and upon three (3) days’ notice from City, and copies thereof shall be furnished if requested.

ARTICLE 15
Compliance with Laws

a. Contractor shall be knowledgeable of and comply with all local, state and federal laws pertaining to the subject matter hereof or in any way regulating the activities undertaken by Contractor or any subcontractor hereunder.

b. Contractor represents and warrants that it:

(1) Has complied and shall at all times during the term of this Contract comply, in all respects, with all immigration laws, regulations, statutes, rules, codes, and orders, including, without limitation, the Immigration Reform and Control Act of 1986 (IRCA); and

(2) Has not and will not knowingly employ any individual to perform services under this Contract who is ineligible to work in the United States or under the terms of this Contract; and

225
10 (3) Has properly maintained, and shall at all times during the term of this Contract properly maintain, all related employment documentation records including, without limitation, the completion and maintenance of the Form I -9 for each of Contractor’s employees; and

(4) Has responded, and shall at all times during the term of this Contract respond, in a timely fashion to any government inspection requests relating to immigration law compliance and/or Form I -9 compliance and/or worksite enforcement by the Department of Homeland Security, the Department of Labor, or the Social Security Administration.

c. Contractor shall require all subcontractors and/or subconsultants to make the same representations and warranties required by this Article 15 when hired to perform services under this Contract.

d. Contractor shall, upon request of City, provide a list of all employees working under this Contract and shall provide, to the reasonable satisfaction of City, verification that all such employees are eligible to work in the United States. All costs associ ated with such verification shall be borne by Contractor. Once such request has been made, Contractor may not change employees working under this Contract without written notice to City, accompanied by the verification required herein for such employees. Contractor shall require all subcontractors and/or sub-consultants to make the same verification when hired to perform services under this Contract.

e. If Contractor, or a subcontractor or subconsultant, knowingly employs an employee providing Work under this Contract who is not authorized to work in the United States, and/or fails to follow federal laws to determine the status of such employee , such shall constitute a material breach of this Contract and may be cause for immediate termination of this Contract by City.

f. Contractor shall indemnify and hold City, its officials and employees harmless for, of and from any loss, including but not limited to fines, penalties and corrective measures, City may sustain by reason of Contractor’s failure to comply with said laws, rules and regulati ons in connection with the performance of this Contract.

ARTICLE 16
Governing Law and Venue

This Contract shall be construed in accordance with and governed by the laws of the State of California and Contractor shall submit to the juri sdiction of California courts. Venue for any dispute arising under this Contract shall be in Orange County, California.

ARTICLE 17
Integration and Amendment

a. This Contract constitutes the entire agreement of the parties. No other agreement, oral or written, pertaining to the Work to be performed under this Contract shall be of any force or 226
11 effect unless it is in writing and signed by both parties. Any Work performed which is inconsistent with or in violation of the provisions of this Contract shall not be compensated.

b. Amendments to this Contract must be in writing and signed by both parties. For contracts approved by the City Council: The City Manager is authorized to execute amendments to this Contract up to the amounts specified in Chapter 3.08 of the Orange Municipal Code.

ARTICLE 18
Notice

Except as otherwise provided herein, all notices required under this Contract shall be in writing and delivered personally, by e-mail, or by first class mail, postage prepaid, to each party at the address listed below. Either party may change the notice address by notifying the other party in writing. Notices shall be deemed received upon receipt of same or within three (3) days of deposit in the U.S. Mail, whichever is earlier. Notices sent by e-mail shall be deemed received on the date of the e-mail transmission.

“CONTRACTOR” “CITY”

Tess Electric Inc. City of Orange
12142 Severn Way 300 E. Chapman Avenue
Riverside, CA 92503 Orange, CA 92866-1591

Attn: Michael Beebe/President Attn: Sonny Tran/Assistant Water Manager

Telephone: (951) 427-1735 Telephone: ( 714) 288-2475 E-Mail: [email protected] E-Mail: [email protected]

ARTICLE 19
Claim Resolution

City and Contractor agree that the claim resolution process applicable to any claim by Contractor in connection with the Work provided herein shall be subject to the procedures set forth in California Public Contract Code Section 9204, attached hereto as Attachment No. 2, and incorporated herein by this reference.

ARTICLE 20
Counterparts

This Contract may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Signatures transmitted via facsimile and electronic mail shall have the same effect as original signatures.

227
12 “CITY”

CONTRACT, BONDS AND INSURANCE
APPROVED BY:

Nathalie Adourian
Senior Assistant City Attorney

CITY OF ORANGE, a municipal corporation

By:

Daniel R. Slater
Mayor of the City of Orange

ATTEST:

Pamela Coleman, City Clerk

“CONTRACTOR”

TESS ELECTRIC INC., a California corporation

[Note: Signature of Chairman of the By:

Board, President or Vice President is Printed Name:
required] Title:

[Note: Signature of Secretary, Assistant By:

Secretary, Chief Financial Officer or Printed Name:

Assistant Treasurer is also required] Title:

√

228
229

Attachment No. 1

Page 1 of 13 ends

ATTACHMENT NO. 1

CALIFORNIA LABOR CODE
SECTIONS 1725.5, 1771, 1771.1, 1771.4, 1775, 1776, 1777.5, 1813 and 1815

Attachment No. 1

Page 2 of 13 ends

Section 1771. Payment of general prevailing rate

Except for public works projects of one thousand dollars ($1,000) or less, not less than the general prevailing rate of per diem wages for work of a similar character in the locality in which the public work is performed, and not less than the general pre vailing rate of per diem wages for holiday and overtime work fixed as provided in this chapter, shall be paid to all workers employed on public works.

Attachment No. 1

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Attachment No. 1

Page 4 of 13 ends

Attachment No. 1

Page 5 of 13 ends

Section 1771.4. Additional requirements when bidding and awarding public works contracts

Attachment No. 1

Page 6 of 13 ends

Section 1775. Penalties for violations

Attachment No. 1

Page 7 of 13 ends

Section 1776. Payroll records; retention; inspection; redacted information; agencies entitled to receive nonredacted copies of certified records; noncompliance penalties; rules

Attachment No. 1

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Attachment No. 1

Page 9 of 13 ends

Section 1777.5. Employment of registered apprentices; wages; standards; number; apprenticeable craft or trade; exemptions; contributions; compliance program

Attachment No. 1

Page 10 of 13 ends

The information submitted shall include an estimate of journeyman hours to be performed under the contract, the number of apprentices proposed to be employed, and the approximate dates the apprentices would be employed. A copy of this information shall also be submitted to the awarding body, if requeste d by the awarding body. Within 60 days after concluding work on the contract, each contractor and subcontractor shall submit to the awarding body, if requested, and to the apprenticeship program a verified statement of the journeyman and apprentice hours performed on the contract. The information under this subdivision shall be public. The apprenticeship programs shall retain this information for 12 months. (f) The apprenticeship program supplying apprentices to the area of the site of the public work shall ensure equal employment and affirmative action in apprenticeship for women and minorities. (g) The ratio of work performed by apprentices to journeymen employed in a particular craft or trade on the public work may be no higher than the ratio stipulated in the apprenticeship standards under which the apprenticeship program operates if the contractor agrees to be bound by those standards. However, except as otherwise provided in this section, in no case shall the ratio be less than one hour of apprentice work for every five hours of journeyman work.
(h) This ratio of apprentice work to journeyman work shall apply during any day or portion of a day when any journeyman is employed at the jobsite and shall be computed on the basis of the hours worked during the day by journeymen so employed. Any work performed by a journeyman in excess of eight hours per day or 40 hours per week shall not be used to calculate the ratio. The contractor shall employ apprentices for the number of hours computed as above before the end of the contract or, in the case of a s ubcontractor, before the end of the subcontract. However, the contractor shall endeavor, to the greatest extent possible, to employ apprentices during the same time period that the journeymen in the same craft or trade are employed at the jobsite. When an hourly apprenticeship ratio is not feasible for a particular craft or trade, the Administrator 239

Attachment No. 1

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Attachment No. 1

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Section 1813. Forfeiture for violations; contract stipulation; report of violations

Attachment No. 1

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Section 1815. Overtime

Attachment No. 2

Page 1 of 3 ends

ATTACHMENT NO. 2

CALIFORNIA PUBLIC CONTRACT CODE SECTION 9204

Section 9204. Legislative findings and declarations regarding timely and complete payment of contractors for public works projects; claims process (Eff: January 1, 2017)

Attachment No. 2

Page 2 of 3 ends

Attachment No. 2

Page 3 of 3 ends

(C) For purposes of this section, mediation includes any nonbinding process, including, but not limited to, neutral evaluation or a dispute review board, in which an independent third party or board assists the parties in dispute resolution through negotiation or by issuance of an evaluation. Any mediation utilized shall conform to the timeframes in this section.
(D) Unless otherwise agreed to by the public entity and the contractor in writing, the mediation conducted pursuant to this section shall excuse any further obligation under Section 20104.4 to mediate after litigation has been commenced.
(E) This section does not preclude a public entity from requiring arbitration of disputes under private arbitration or the Public Works Contract Arbitration Program, if mediation under this section does not resolve the parties’ dispute.
(3) Failure by the public entity to respond to a claim from a contractor within the time periods described in this subdivision or to otherwise meet the time requirements of this section shall result in the claim being deemed rejected in its entirety. A claim that is denied by reason of the public entity’s failure to have responded to a claim, or its failure to otherwise meet the time requirements of this section, shall not constitute an adverse finding with regard to the merits of the claim or the responsibility or qualifications of the claimant. (4) Amounts not paid in a timely manner as required by this section shall bear interest at 7 percent per annum. (5) If a subcontractor or a lower tier subcontractor lacks legal standing to assert a claim against a public entity because privity of contract does not exist, the contractor may present to the public entity a claim on behalf of a subcontractor or lower tier subcontractor. A subcontractor may request in writing, either on their own behalf or on behalf of a lower tier subcontractor, that the contractor present a claim for work which was performed by the subcontractor or by a lower tier subcontractor on behal f of the subcontractor. The subcontractor requesting that the claim be presented to the public entity shall furnish reasonable documentation to support the claim. Within 45 days of receipt of this written request, the contractor shall notify the subcontrac tor in writing as to whether the contractor presented the claim to the public entity and, if the original contractor did not present the claim, provide the subcontractor with a statement of the reasons for not having done so. (e) The text of this section or a summary of it shall be set forth in the plans or specifications for any public works project that may give rise to a claim under this section. (f) A waiver of the rights granted by this section is void and contrary to public policy, provided, however, that (1) upon receipt of a claim, the parties may mutually agree to waive, in writing, mediation and proceed directly to the commencement of a civi l action or binding arbitration, as applicable; and (2) a public entity may prescribe reasonable change order, claim, and dispute resolution procedures and requirements in addition to the provisions of this section, so long as the contractual provisions do not conflict with or otherwise impair the timeframes and procedures set forth in this section. (g) This section applies to contracts entered into on or after January 1, 2017. (h) Nothing in this section shall impose liability upon a public entity that makes loans or grants available through a competitive application process, for the failure of an awardee to meet its contractual obligations. (i) This section shall remain in effect only until January 1, 2027, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2027, deletes or extends that date. 245
Electrical On-Call Services (Quest Bid #9602549)
Bid Opening: 7/8/25
Line Item Item Description UofM Unit Price Amount Unit Price Amount Unit Price Amount Unit Price Amount 1 On-Call Service Rate 3-YR $210,000.00 $210,000.00 $220,500.00 $220,500.00 N/A N/A N/A N/A Total: $210,000.00 $220,500.00 N/A N/A
* Sulzer & Electrical Service Solution failed to provide quote by City's deadline. 1 City of Orange Summary of Bid Abstracts for:
2 3 4
Tess Electric Halcyon Electric * Sulzer * Electrical Service Solution 246
Agenda Item
City Council
Item #: 3.12. 8/12/2025 File #: 25-0458
TO: Honorable Mayor and Members of the City Council
THRU: Jarad Hildenbrand, City Manager
FROM: Christopher Cash, Public Works Director

1. SUBJECT
Notice of Completion and Acceptance for Community Development Block Grant Fiscal Year 2024- 2025 Pixley Neighborhood Street Rehabilitation Project; Bid No. 24-25.14 (SP-4293).

2. SUMMARY
The City of Orange entered into a contract with Calmex Engineering, Inc. for the Community Development Block Grant Fiscal Year 2024-2025 Pixley Neighborhood Street Rehabilitation Project.

The rehabilitation consisted of removing and reconstructing severely damaged pavement sections, grinding, and overlaying the rest of the roadway. The work was completed to the satisfaction of the Public Works Department.

3. RECOMMENDED ACTION

1. Accept the Community Development Block Grant Fiscal Year 2024-2025 Pixley Street Neighborhood Street Rehabilitation Project as complete.

2. Authorize the City Clerk to file Notice of Completion with the Orange County Clerk-Recorder’s Office.

4. ATTACHMENTS
· Notice of Completion and Acceptance
City of Orange Printed on 8/7/2025Page 1 of 1
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Agenda Item
City Council
Item #: 3.12. 8/12/2025 File #: 25-0458
TO: Honorable Mayor and Members of the City Council
THRU: Jarad Hildenbrand, City Manager
FROM: Christopher Cash, Public Works Director

1. SUBJECT
Notice of Completion and Acceptance for Community Development Block Grant Fiscal Year 2024- 2025 Pixley Neighborhood Street Rehabilitation Project; Bid No. 24-25.14 (SP-4293).

2. SUMMARY
The City of Orange entered into a contract with Calmex Engineering, Inc. for the Community Development Block Grant Fiscal Year 2024-2025 Pixley Neighborhood Street Rehabilitation Project.

3. RECOMMENDED ACTION

1. Accept the Community Development Block Grant Fiscal Year 2024-2025 Pixley Street Neighborhood Street Rehabilitation Project as complete.

2. Authorize the City Clerk to file Notice of Completion with the Orange County Clerk-Recorder’s Office.

4. ATTACHMENTS
· Notice of Completion and Acceptance
City of Orange Printed on 8/7/2025Page 1 of 1
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RECORDING REQUESTED BY AND
WHEN RECORDED MAIL TO:

City of Orange
300 East Chapman Avenue
Orange, California 92866
Attention: City Clerk
[Space above this line for Recorder’s use only.]

THIS DOCUMENT IS RECORDED AT THE

REQUEST AND FOR THE BENEFIT OF THE CITY

OF ORANGE AND IS EXEMPT FROM THE

PAYMENT OF A RECORDING FEE PURSUANT
TO GOVERNMENT CODE SECTIONS 6103 AND
27383.

NOTICE OF COMPLETION AND ACCEPTANCE
NOTICE IS HEREBY GIVEN that work on that certain public work and improvements known as “Community Development Block Grant Fiscal Year 2024-2025 Pixley Street Neighborhood Street Rehabilitation (Bid No. 24-

25.14; SP-4293)” (herein referred to as the “Project”), for the owner, the City of Orange, a municipal corporation (herein referred to as the “City”), whose address is 300 E. Chapman Avenue, Orange, CA 92866, was completed and accepted by the City Council of the City of Orange on August 12, 2025 at a regular meeting of its members, at which a quorum was present and acting throughout. The project is at various locations in the City of Orange, State of California. The contractor who performed (or caused to be performed) said public work and improvements were CALMEX Engineering, a California corporation, with its principal office at 2750 S. Lilac Ave, Bloomington, State of California.

The name of the surety on the Labor and Material Bond for the Project is Swiss Re Corporate Solutions America Insurance Corporation, MO (Bond No. 2358022) in the amount of $443,181.00.

DATED as of the 12th day of August 2025. CITY OF ORANGE, a municipal corporation By:

Daniel R. Slater, Mayor, City of Orange

STATE OF CALIFORNIA

COUNTY OF ORANGE
I, Daniel R. Slater, Mayor of the City of Orange, state that I have read the foregoing document know the contents thereof, and that the facts therein stated are true of my own knowledge. I hereby declare under penalty of perjury that the foregoing is true and correct.

DATED as of the 12th day of August 2025 at Orange, California.

Daniel R. Slater, Mayor, City of Orange
I, Pamela Coleman, City Clerk for the City of Orange, hereby attest that Daniel R. Slater is known to me to be the Mayor of the City of Orange and known to me to be the person who executed the within instrument on behalf of said municipal corporation and acknowledged to me that the City of Orange executed the same.

Pamela Coleman, City Clerk, City of Orange
249
Agenda Item
City Council
Item #: 3.13. 8/12/2025 File #: 25-0466
TO: Honorable Mayor and Members of the City Council
THRU: Jarad Hildenbrand, City Manager
FROM: Christopher Cash, Public Works Director

1. SUBJECT
Notice of Completion and Acceptance for Annual Sewer Line Replacement / Maintenance Fiscal Year 2024-2025; Bid No. 24-25.04 (S-252).

2. SUMMARY
The City of Orange contracted with Ramona Inc. for the Annual Sewer Line Replacement / Maintenance Fiscal Year 2024-2025. The project consisted of replacing aged sewer infrastructure, replacing pipes that are structurally deficient, improving pipeline capacity and minimizing maintenance issues. The project included the replacement of approximately 5,881 linear feet of existing six-inch with eight-inch sewer main and the reconnection of service laterals throughout the City of Orange. The work was completed to the satisfaction of the Public Works Department.

3. RECOMMENDED ACTION

1. Accept the Annual Sewer Line Replacement / Maintenance Fiscal Year 2024-2025 project as complete.

2. Authorize City Clerk to file Notice of Completion with the Orange County Clerk-Recorder’s Office.

4. ATTACHMENTS
· Notice of Completion and Acceptance
City of Orange Printed on 8/7/2025Page 1 of 1
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Agenda Item
City Council
Item #: 3.13. 8/12/2025 File #: 25-0466
TO: Honorable Mayor and Members of the City Council
THRU: Jarad Hildenbrand, City Manager
FROM: Christopher Cash, Public Works Director

1. SUBJECT
Notice of Completion and Acceptance for Annual Sewer Line Replacement / Maintenance Fiscal Year 2024-2025; Bid No. 24-25.04 (S-252).

3. RECOMMENDED ACTION

1. Accept the Annual Sewer Line Replacement / Maintenance Fiscal Year 2024-2025 project as complete.

2. Authorize City Clerk to file Notice of Completion with the Orange County Clerk-Recorder’s Office.

4. ATTACHMENTS
· Notice of Completion and Acceptance
City of Orange Printed on 8/7/2025Page 1 of 1
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251

RECORDING REQUESTED BY AND
WHEN RECORDED MAIL TO:

City of Orange
300 East Chapman Avenue
Orange, California 92866
Attention: City Clerk
[Space above this line for Recorder’s use only.]

THIS DOCUMENT IS RECORDED AT THE

REQUEST AND FOR THE BENEFIT OF THE CITY

OF ORANGE AND IS EXEMPT FROM THE

PAYMENT OF A RECORDING FEE PURSUANT
TO GOVERNMENT CODE SECTIONS 6103 AND
27383.

NOTICE OF COMPLETION AND ACCEPTANCE
NOTICE IS HEREBY GIVEN that work on that certain public work and improvements known as “Annual Sewer Replacement / Maintenance Fiscal Year 2024-2025 (Bid No. 24-25.04; S-252)” (herein referred to as the “Project”), for the owner, the City of Orange, a municipal corporation (herein referred to as the “City”), whose address is 300 E.

Chapman Avenue, Orange, CA 92866, was completed and accepted by the City Council of the City of Orange on August 12, 2025 at a regular meeting of its members, at which a quorum was present and acting throughout. The Project is at various locations in the City of Orange, State of California. The contractor who performed (or caused to be performed) said public work and improvements were Ramona, a California corporation, with its principal office at 5029 Bleecker St. Suite 200 Baldwin Park, State of California.

The name of the surety on the Labor and Material Bond for the Project is U.S. Specialty Insurance Company, Texas (Bond No. 1001225645) in the amount of $1,765,200.00.

DATED as of the 12th day of August 2025. CITY OF ORANGE, a municipal corporation By:

Daniel R. Slater, Mayor, City of Orange

STATE OF CALIFORNIA

DATED as of the 12th day of August 2025 at Orange, California.

Pamela Coleman, City Clerk, City of Orange
252
Agenda Item
City Council
Item #: 3.14. 8/12/2025 File #: 25-0474
TO: Honorable Mayor and Members of the City Council
THRU: Jarad Hildenbrand, City Manager
FROM: Garrett Smith, City Treasurer

1. SUBJECT
Annual review and approval of the Statement of Investment Policy for Fiscal Year 2025-26.

2. SUMMARY
The City Treasurer and Chandler Asset Management, the City’s investment management firm, conducted a review of the City’s Investment Policy and updated it with current trends and laws governing public sector investments. Chandler provided recommendations to further the best interests of the City’s investment strategy.

3. RECOMMENDED ACTION
Adopt the Fiscal Year 2025-26 City of Orange Investment Policy.

4. DISCUSSION AND BACKGROUND
The California Government Code Section 53646 requires that the Statement of Investment Policy (SIP) be reviewed and approved by the legislative body on an annual basis. The City’sInvestment Policy is one of the most conservative policies in the State and it is proposed that the very conservative features of the policy be maintained.

The City Treasurer and Chandler Asset Management have reviewed the policy and all changes are made to adjust any outdated verbiage based on new Senate Bills and additional best practices.

These changes were presented to the Investment Advisory Committee on July 23rd and the committee supported the recommended changes.

Key Updates:
· 2.1 - Scope - exemption language recommended bv CMTA reviewer in 2024 · 2.4 - Authorized Financial Institutions and Dealers - Include FINRA certification proof, NCD/Federally Insured Time Deposits
o Federal Agency description consistent with Code
o Updated language for Asset-Backed Securities to be in line with Senate Bill 882 (which clarified the limitations on Pass Thru Securities)
· Updated language for Asset-Backed Securities to be in line with Senate Bill 882 (which clarified the limitations on Pass Thru Securities)
· 3.3 - Mitigating Risk in the Portfolio - downgrade language reflecting Chandler best practices City of Orange Printed on 8/7/2025Page 1 of 2
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Item #: 3.14. 8/12/2025 File #: 25-0474

5. ATTACHMENTS
· FY 2025-26 City of Orange Investment Policy (redlined version) · FY 2025-26 City of Orange Investment Policy (clean version) City of Orange Printed on 8/7/2025Page 2 of 2
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Agenda Item
City Council
Item #: 3.14. 8/12/2025 File #: 25-0474
TO: Honorable Mayor and Members of the City Council
THRU: Jarad Hildenbrand, City Manager
FROM: Garrett Smith, City Treasurer

1. SUBJECT
Annual review and approval of the Statement of Investment Policy for Fiscal Year 2025-26.

3. RECOMMENDED ACTION
Adopt the Fiscal Year 2025-26 City of Orange Investment Policy.

The City Treasurer and Chandler Asset Management have reviewed the policy and all changes are made to adjust any outdated verbiage based on new Senate Bills and additional best practices.

These changes were presented to the Investment Advisory Committee on July 23rd and the committee supported the recommended changes.

CITY OF ORANGE

STATEMENT OF INVESTMENT POLICY
Fiscal Year 2023-242025-26

1.0 INVESTMENT POLICY OVERVIEW

1.1 POLICY
It is the policy of the City of Orange (“City”) to invest public funds in a manner which will provide foremost for the safety of principal while meeting the short- and long-term cash flow demands of the City and conforming to all statutes governing the investment of City funds.

Annually, in accordance with California Government Code (“CGC”) Section 53646, the Treasurer will render to the City Council a Statement of Investment Policy for consideration and approval at a public meeting. Any investment currently held at that time that does not meet the guidelines of this policy, as changed from time to time by the City Council, shall be exempt from the requirements of this policy. However, at the investment’s maturity or liquidation, such funds shall be reinvested only as provided by this policy.

1.2 PURPOSE
This Statement of Investment Policy (“SIP” ) is set forth by the City for the following purposes:
a) To establish a clear understanding for the City Council, Investment Committees, City management, responsible employees, citizens, and third parties, of the objectives, policies and guidelines for the investment of the City’s idle and surplus funds. b) To offer guidance to investment staff, brokers and any external investment advisors on the investment of City funds.

1.3 INVESTMENT OBJECTIVES
Within the overriding requirement of compliance with all federal, state and local laws governing the investment of moneys under the control of the Treasurer, and as specified in the CGC Section 53600.5, when investing, reinvesting, purchasing, acquiring, exchanging, selling and managing public funds, the primary objectives, in priority order, of the investment activities shall be:
a) Safety: Safety of principal is the foremost objective of the investment program.

Investments of the City shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio.
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2 b) Liquidity: The investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirements which might be reasonably anticipated. c) Return on Investments : The investment portfolio shall be designed and managed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment objectives, authorized investments and the cash flow needs of the City. The Treasurer’s monthly reports shall include benchmark reporting to define “a market rate of return,” which shall be one of the indices published in a financial journal of wide circulation that are most comparable to the Treasurer’s portfolio. The benchmark shall be used solely as a reference tool. The Treasurer shall not add additional risk to the portfolio in order to attain or exceed the benchmark.

1.4 PRUDENCE
Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs; not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived. The standard of prudence to be used by investment officials shall be the “prudent investor” standard (CGC Section 53600.3) and shall be applied in the context of managing an overall portfolio. The Treasurer and other investment employees, acting within the intent and scope of the SIP and other written procedures, and exercising due diligence, shall be relieved of personal responsibility for an individual security’s credit risk or market price changes, provided deviations from expectations are reported in the immediately following Treasurer’s Report and appropriate action is taken to control adverse developments. When a deviation poses a significant risk to the City’s financial position, the City Council shall be notified immediately.

1.5 ETHICS
Elected officials, City officers and employees and any other individuals involved in the investment operations are prohibited from personal business activity that could conflict with the proper execution of the investment program, or which could impair their ability to make impartial investment decisions, or which could give the appearance thereof.

Furthermore, these same individuals are prohibited from undertaking personal investment transactions with any individual with whom business is conducted on behalf of the City.

2.0 OPERATIONS AND PROCEDURES

2.1 SCOPE
a) This SIP applies to all financial assets of the City. These funds are accounted for in the Annual Comprehensive Financial Report and include: General Fund, Special Revenue Funds, Debt Service Funds, Capital Project Funds, Enterprise Funds, and Internal Service Funds.
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3 b) This SIP specifically exempts and does not apply to the following financial assets and investment activities of the City:
(1) The City’s Deferred Compensation Plan is excluded because it is managed by a third party administrator and invested by individual plan participants.

CalPERS, OPEB trusts, and the investment of employees’ deferred compensation funds invested pursuant to Government Code Section 53609 (2) Proceeds of City or other debt issues in possession of a trustee or fiscal agent are not considered to be part of the financial assets covered by this policy.

These bond proceeds shall be invested in accordance with the requirements and restrictions outlined in the bond documents.

2.2 DELEGATION OF AUTHORITY
a) The City Council’s authority to manage the investment program is derived from CGC Sections 53600 et seq.
b) In accordance with the City of Orange Municipal Code Chapter 2.26, management responsibility for the investment program is hereby delegated to the Treasurer, who shall establish written procedures for the operation of the investment program consistent with this SIP. Under the provision of CGC Section 53600.3, the Treasurer is a trustee and a fiduciary subject to the prudent investor standard. c) The Treasurer may delegate all, or a portion of, their investment authority to a Deputy City Treasurer. Prior to the delegation of the investment authority to a Deputy City Treasurer, the City Treasurer shall notify the City Council and request confirmation of the delegation. Delegation of investment authority will not remove or abridge the Treasurer’s investment responsibility.
d) The City Council may engage the services of one or more external investment managers to assist in the management of the City’s investment portfolio in a manner consistent with the City’s objectives and in accordance with this SIP. Such external managers may provide advice and effectuate trades upon specific authorization for each transaction. Such managers must be registered under the Investment Advisors Act of 1940 and must have not fewer than five years’ experience investing in the securities and obligations authorized by the CGC Section 53601, and with assets under management in excess of five hundred million dollars ($500,000,000). The Treasurer shall review Form ADV of any investment advisor prior to engagement by the City Council. This Section does not preclude the Treasurer from retaining portfolio consultants within existing authority.

2.3 INVESTMENT OVERSIGHT COMMITTEE
a) Resolution No. 11387, adopted by the City Council on April 12, 2022, established an Investment and Audit Committee (IAC). The terms and provisions of said Resolution, 259
4 or as it may be later amended, are incorporated into this SIP by reference as though fully set forth herein. The IAC consists of the Treasurer and four citizen members. b) The IAC shall, at least annually and more often if directed by the City Council or agreed by a majority of the IAC, review the City Council’s adopted SIP and report to the City Council its recommendations for any changes, additions or deletions to the SIP. c) The IAC shall monitor the implementation of the City Council’s adopted SIP and annually submit a compliance report to the City Council. d) The IAC shall review reports to the City Council from Treasurer or other pertinent sources and prepare responses as required.
e) The IAC shall meet and report quarterly to the City Council summarizing the IOC meetings and the recommendations of the Investment Advisory Committee. Such report shall contain an unedited copy of the Investment Advisory Committee’s recommendations.

2.4 AUTHORIZED FINANCIAL INSTITUTIONS AND DEALERS
a) Institutions eligible to transact investment business with the City shall include only the following:
(1) Primary government dealers as designated by the Federal Reserve Bank and non-primary government dealers;
(2) Nationally or state-chartered banks;
(3) The Federal Reserve Bank;
(4) Direct issuers of securities eligible for purchase by the City; (5) Institutions licensed by the state as a broker-dealerInstitutions licensed by the state as a broker-dealer, as defined in Section 25004 of the Corporations Code, with proof of FINRA certification; and
(6) Institutions that are members of a federally regulated securities exchange. b) Selection of financial institutions and broker/dealers authorized to engage in transactions with the City shall be at the sole discretion of the City Treasurer. The Treasurer will maintain a list of financial institutions authorized to provide investment services to the City. These institutions may include "primary" dealers or regional dealers that qualify under Securities and Exchange Commission (SEC) Rule 15c3-1 (uniform net capital rule).
c) The City Treasurer shall obtain information from qualified financial institutions to determine if the institution makes markets in securities appropriate for the City’s needs, can assign qualified sales representatives and can provide written agreements to abide by the conditions set forth in the City of Orange SIP. Investment accounts with all financial institutions shall be standard non-discretionary accounts and may not be margin accounts.
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5 d) All financial institutions which desire to become qualified bidders for investment transactions must supply the Treasurer with the following:
(1) Audited financial statements for the institution’s three most recent fiscal years;
(2) At least three references from California local agencies whose portfolio size, investment objectives and risk preferences are similar to the City’s; (3) A statement certifying that the institution has reviewed the CGC Sections 53600 et seq. and the City’s SIP, and that all securities offered to the City shall comply fully and in every instance with all provisions of the Code and with this SIP; and,
(4) Completed Broker/Dealer Questionnaire.
e) The Treasurer shall conduct an annual review of the financial condition of qualified institutions. In addition, a current financial statement is required to be on file for each qualified institution.
f) Public deposits shall be made only in qualified public depositories within the State of California as established by State law. Deposits shall be insured by the Federal Deposit Insurance Corporation (FDIC) or, to the extent the amount exceeds the insured maximum, shall be collateralized with securities in accordance with State law. g) Selection of broker/dealers used by an external investment adviser retained by the City will be at the sole discretion of the adviser. Where possible, transactions with broker/dealers shall be selected on a competitive basis and their bid or offering prices shall be recorded. If there is no other readily available competitive offering, best efforts will be made to document quotations for comparable or alternative securities. When purchasing original issue instrumentality securities, no competitive offerings will be required as all dealers in the selling group offer those securities at the same original issue price.

2.5 COLLATERAL REQUIREMENTS
CGC Sections 53652 and 53667 require depositories to post certain types and levels of collateral for public funds on deposit above the FDIC insurance amounts. The collateral requirements apply to bank deposits, both active (checking and savings accounts) and inactive (non-negotiable time certificates of deposit).

2.6 SAFEKEEPING AND DELIVERY
a) To protect against fraud, embezzlement, or losses caused by collapse of individual securities dealers, all securities owned by the City shall be held in safekeeping by the City’s custodial bank, a third party bank trust department, acting as agent for the City under the terms of a custody agreement, and shall be evidenced by safekeeping receipts. 261
6 b) All security transactions entered into by the City shall be conducted on a standard delivery-versus-payment (DVP) basis, which ensures that securities are deposited with the third party custodian prior to the release of funds. All securities purchased or acquired shall be delivered to the City by book entry, physical delivery or by third party custodial agreement as required by CGC Section 53601. Investments in the State Pool or money market mutual funds are undeliverable, and are not subject to delivery or third party safekeeping requirements.
c) On a daily basis, investment trades shall be verified against the bank transactions and broker confirmation tickets to ensure accuracy. On a monthly basis, the custodial asset statement is reconciled with the month end portfolio holdings. On an annual basis, the external auditor confirms investment holdings.

3.0 PERMITTED INVESTMENTS AND RISK MANAGEMENT

Maximum maturity at purchase 5 years ,; maximum concentration 75% of portfolio at time of purchase with no more than 30% of total portfolio in any single agency, the maximum percent of agency callable securities in the portfolio will be 20%, and excluding completely Government National Mortgage Association bonds; i.e., GNMAs.)
c) Shares of beneficial interest issued by diversified management companies that are Money Market Mutual Funds, registered with the Securities and Exchange Commission under the Investment Company Act of 1940 investing in the securities and obligations authorized by CGC Sections 53601(b) and (e) only (i.e., U.S. Government issues only). Such Funds must either carry the highest rating of at least two of the three largest national rating agencies,or such funds must have retained an investment adviser registered with the Securities and Exchange Commission with not less than five year’s experience managing money market mutual funds with assets under management in excess of five hundred million dollars ($500,000,000). ( Limits: maximum 90 days 262
7 Weighted Average Maturity; maximum concentration $15 million, or 20%, of portfolio, whichever is less.)
d) State of California Local Agency Investment Fund (LAIF) is permitted, with the knowledge that the fund may invest in some vehicles allowed by statute but not otherwise authorized by the City Council in this SIP. The Treasurer shall obtain from the State Treasurer, no less than quarterly, reports providing sufficient detail to adequately judge the risk inherent in the LAIF portfolio, and shall inform the City Council immediately of any risks noted that may warrant reconsideration of this investment vehicle. (Limits: $75 million per account as of 1/1/2020.) e) Investment in new Government sponsored pools will be subject to due diligence. A thorough investigation of the pool is required prior to investing, and on a continual basis.
f) Funds held under the terms of a Trust Indenture or other contract or debt issuance agreement may be invested according to the provisions of those indentures or agreements.
g) Negotiable Certificates of Deposit (NCDs), issued by a nationally or state-chartered bank, a savings association or a federal association, a state or federal credit union, or by a federally licensed or state-licensed branch of a foreign bank, provided that: The amount of the NCD insured up to the FDIC limit does not require any credit ratings; any amount above the FDIC limit must be issued by institutions which have short-term obligations rated “A-1” or its equivalent or better, long-term obligations with “A” or its equivalent or better by at least one NRSRO; no more than 30% of the total portfolio may be invested in NCDs; no more than 5% of the total portfolio may be invested in any single issuer; the maximum maturity does not exceed five (5) years. Certificates of Deposit approved by the California AB 2011 are permitted. ( Limits: The bill allows investment up to January 1, 2021; a maximum concentration 30% of total portfolio.) g)h) Federally Insured Time Deposits (Non-Negotiable Certificates of Deposit) in state or federally chartered banks, savings and loans, or credit unions, provided that: The amount per institution is limited to the maximum covered under federal insurance; no more than 20% of the total portfolio will be invested in a combination of federally insured and collateralized time deposits; the maximum maturity does not exceed five (5) years.
h)i)Commercial Paper of prime quality in the highest credit category by a nationally recognized statistical ratings organization (NRSRO) issued by a domestic corporation having assets in excess of $500,000,000 and rated in the category of “A” or better by a NRSRO on its debt other than commercial paper as provided by a national rating agency. (Limits: Maximum maturity of 270 days or less; maximum concentration 25% of portfolio may be invested in Commercial Paper. Under a provision sunsetting on January 1, 2026, no more than 40% of the portfolio may be invested in Commercial 263
8 Paper if the Agency’s investment assets under management are greater than $100,000,000; no more than 5% of the book value of the portfolio funds to a single issuer at time of purchase.)
i)j) Medium-term notes issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States. ( Limits: Maximum maturity at purchase 5 years; must be rated in the category of “A” or better by a NRSRO; maximum concentration 30% of portfolio and no more than 5% of the book value of the portfolio funds to a single issuer at time of purchase.)
j)k)Municipal bonds include obligations issued by the State of California and any local agency within the state of California, and registered bonds of any of the other 49 states in addition to California, including bonds payable solely out of the revenues from a revenue producing property owned, controlled, or operated by a state or local agency or by a department, board, agency, or authority of a state or local agency. ( Limits:

Maximum maturity at purchase 5 years; must be rated in the category of “A” or better by a NRSRO; maximum concentration 20% of portfolio and no more than 5% of the book value of the portfolio funds to a single issuer at time of purchase.) l) Asset-Backed, Mortgage-Backed, Mortgage Pass-Through Securities, and Collateralized Mortgage Obligations limited to mortgage-backed pass-through securities issued by a US government agency or consumer receivable pass-through certificates or bonds. (Limits: Maximum maturity at purchase of 5 years ; the securities are rated in a rating category of “AA” or its equivalent or higher by a NRSRO, The aggregate investment in mortgage-backed and asset-backed securities described in this section shall not exceed 20% of the portfolio; no more than 5% held in any one issuer that is not a US government agency.)Asset-Backed, Mortgage-Backed, Mortgage Pass- Through Securities, and Collateralized Mortgage Obligations from issuers not defined in sections (a) or (b) of the authorized investments section of this policy, provided that:

The securities are rated in a rating category of “AA” or its equivalent or better by a NRSRO. No more than 20% of the total portfolio may be invested in these securities.

No more than 5% of the total portfolio may be invested in any single Asset-Backed or Commercial Mortgage security issuer. The
k)m) Supranational securities, senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter-American Development Bank which are eligible for purchase in the United States. ( Limits: Maximum remaining maturity of five years or less; Investments under this subdivision shall be rated in a rating category of “AA” or its equivalent or higher by a NRSRO ; maximum concentration of 30% of the portfolio with no more than 10% invested in any one issuer.)
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9 3.2 PROHIBITED INVESTMENT VEHICLES AND PRACTICES
The City Treasurer is prohibited from the following:
a) Borrowing for investment purposes (“Leverage”) is prohibited. b) Buying or selling securities “on Margin” is prohibited. c) Investing in any instrument, which is commonly known as a “derivative” instrument (options, futures, swaps, caps, floors, collars, U.S. Treasury zero coupon bonds, U.S.

Treasury strips, interest only bonds, interest-only strips derived from mortgage pools), or any investment that may result in a zero interest accrual, even if held to maturity, is prohibited.
d) Under the provisions of CGC Sections 53601.6 and 53631.5, the City shall not invest any funds covered by this SIP in instruments known as Structured Notes (e.g. inverse floaters, leverage floaters, structured CD’s, range notes, equity-linked securities). Any such investments are prohibited.
e) Trading securities for the sole purpose of speculating on the future direction of interest rates is prohibited.
f) State law notwithstanding, any investments not specifically described herein under Subsections 3.1 a) through 3.1 c) are prohibited.
g) The purchase of a security with a forward settlement date exceeding 45 days from the time of the investment is prohibited.
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10 3.3 MITIGATING RISK IN THE PORTFOLIO
a) Credit Risk:
(1) The City will diversify its investments in accordance with the limits set forth in Subsection 3.1 of this SIP to diminish the credit risk resulting from concentrations.
(2) The City, on occasion, may sell a security prior to its maturity (recording a gain or loss) in order to improve the risk structure, liquidity and yield of the portfolio in response to market conditions.
(3) If any security owned by the City is downgraded to a level below the requirements of this policy, making it ineligible for additional purchases, the following steps will be taken: Any actions taken related to the downgrade by the investment manager will be communicated to the Finance Director and City Treasurer in a timely manner. If a decision is made to retain the security, the credit situation will be monitored and reported to the City Council. it shall be the City’s policy to review immediately the credit situation and make a determination as to whether to sell or retain such securities in the portfolio. If the highest credit rating of a security is downgraded one notch below the quality required in this investment policy, it will be considered acceptable to retain such downgraded security in the portfolio and its presence in the portfolio will be reported to the City Council and monitored continuously for further information. If the highest credit rating of a security is rated two grades below the required minimum rating, it will trigger an automatic sale of such downgraded security.
b) Market Risk: While the City recognizes that longer term portfolios achieve higher returns, longer term portfolios have higher volatility of total return. The City will limit market risk by limiting the concentrations, volume and duration of its longer term investments, as well as limiting them to funds which are not needed for current year cash flow purposes.
(1) Maturities selected shall provide for stability of income and liquidity, and shall not exceed 5 years from the date of purchase. Funds not required for purposes of meeting specific cash flow needs shall be invested in permitted securities so that securities will mature periodically across the maturity spectrum with a maximum of five years.
(2) The City may, on occasion, sell a security prior to its maturity (recording a gain or loss) in order to diminish the portfolio’s exposure to market risk or reinvest into a better opportunity providing more potential earning to the City’s portfolio.

4.0 REPORTING, REVIEW AND AUDITS

4.1 MONTHLY REPORTS
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11 a) The Treasurer shall submit three monthly investment reports to the City Council, and they shall be submitted within 45 days following the end of the quarter. The monthly reports shall include a complete description of the portfolio, the type of investments, the issuers, maturity dates, par and dollar amounts invested on all securities, the current market values of each component of the portfolio, the source of the portfolio valuation, investments and moneys held by the City, and shall additionally include a description of any of the City’s funds, investments, or programs, that are under the management of contracted parties, including lending programs.
b) The report shall also include performance measures as recommended by the CFA Institute’s Global Investment Performance Standards (GIPS). These shall include a presentation of Total Return using accrual accounting, and a Time-weighted Rate of Return using a monthly valuation and one of the GIPS approved methods of calculation. The report shall also include a presentation of Yield to Maturity. c) The report shall also include the performance of the benchmark described in Subsection

1.3 c) of this SIP as a basis of comparison for the City’s portfolio. d) The report shall also include the following certifications:
(1) All investment actions executed since the last report have been made in full compliance with the SIP.
(2) The City will meet its expenditure obligations for the next six months is required by CGC Sections 53646(b)(2) and (3).

4.2 INTERNAL CONTROLS
The Treasurer is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the City are protected from loss, theft or misuse. The internal control structure shall be designed to provide reasonable assurance that these objectives are met. Internal controls shall be in writing and shall address the following points: separation of transaction authority from accounting and record keeping, safekeeping of assets and written confirmation of telephone transactions for investments and wire transfers.

4.4 SPECIAL AUDITS
The City Council may at any time order an audit of the investment portfolio and/or the Treasurer’s investment practices.

5.0 INVESTMENT POLICY ADOPTION
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12 The SIP shall be reviewed annually by the City Council for consistency with the City’s overall investment objectives regarding preservation of principal, liquidity, return, relevance to current law as well as to current financial and economic trends. Any modifications necessary must be approved separately by the City Council. The SIP shall then be adopted in its entirety, as amended, within 120 days of the fiscal year end by resolution and vote of the City Council at a public meeting.

5.1 INVESTMENT POLICY CERTIFICATION
The 1999-2000 version of this investment policy was certified by the Municipal Treasurer’s Association of the United States and Canada, in June 2000. Recommended changes have been incorporated. In the event of any significant changes in legislation that will require significant changes to the SIP, the City will resubmit the new policy for re- certification.
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13 GLOSSARY
AGENCIES: Federal agency securities
ANNUAL COMPREHENSIVE FINANCIAL REPORT: The official annual report for the City of Orange. It includes five combined statements for each individual fund and account group prepared in conformity with GAAP. It also includes supporting schedules necessary to demonstrate compliance with finance-related legal and contractual provisions, extensive introductory material, and a detailed Statistical Section.

ASKED: The price at which securities are offered.

ASSET BACKED SECURITIES: Securities supported by pools of installment loans or leases or by pools of revolving lines of credit.

BANKERS’ ACCEPTANCE (BA): A draft or bill or exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill, as well as the issuer.

BENCHMARK: A segment of the securities market with characteristics similar to the subject portfolio. It is used to compare portfolio performance to the performance of the appropriate segment of the market. (e.g. 1-Year T-Bill rate)
BID: The price offered by a buyer of securities. (When you are selling securities, you ask for a bid.) See Offer.

BROKER: A broker brings buyers and sellers together for a commission.

CERTIFICATE OF DEPOSIT (CD): A time deposit with a specific maturity evidenced by a certificate. Large-denomination CD’s are typically negotiable.

COLLATERAL: Securities, evidence of deposit or other property, which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public moneys.

COLLATERALIZED MORTGAGE OBLIGATIONS (CMO): Classes of bonds that redistribute the cash flows of mortgage securities (and whole loans) to create securities that have different levels of prepayment risk, as compared to the underlying mortgage securities.

COMMERCIAL PAPER: Short-term, negotiable unsecured promissory notes of corporations.

COUPON: (a) The annual rate of interest that a bond’s issuer promises to pay the bondholder on the bond’s face value. (b) A certificate attached to a bond evidencing interest due on a payment date.
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14 DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account.

DEBENTURE: A bond secured only by the general credit of the issuer.

DELIVERY VERSUS PAYMENT: There are two methods of delivery of securities: delivery versus payment and delivery versus receipt. Delivery versus payment is delivery of securities with an exchange of money for the securities. Delivery versus receipt is delivery of securities with an exchange of a signed receipt for the securities.

DISCOUNT: The difference between the cost price of a security and its maturity when quoted at lower than face value. A security selling below original offering price shortly after sale also is considered to be at a discount.

DISCOUNT SECURITIES: Non-interest bearing money market instruments that are issued a discount and redeemed at maturity for full face value; e.g., US Treasury Bills.

DIVERSIFICATION: Dividing investment funds among a variety of securities offering independent returns.

FEDERAL CREDIT AGENCIES: Agencies of the Federal government set up to supply credit to various classes of institutions and individuals; e.g., S&L’s, small business firms, students, farmers, farm cooperatives, and exporters.

FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A Federal agency that insures bank deposits, currently up to $250,000 per deposit.

FEDERAL FUNDS RATE: The rate of interest at which Federal funds are traded. This rate is currently pegged by the Federal Reserve through open-market operations.

FEDERAL HOME LOAN BANKS (FHLB): The institutions that regulate and lend to savings and loan associations. The Federal Home Loan banks play a role analogous to that played by the Federal Reserve Banks vis-à-vis member commercial banks.

FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA): FNMA, like GNMA, was chartered under the Federal National Mortgage Association Act in 1938. FNMA is a federal corporation working under the auspices of the Department of Housing and Urban Development (HUD). It is the largest single provider of residential mortgage funds in the United States. Fannie Mae, as the corporation is called, is a private stockholder-owned corporation. The corporations’ purchases include a variety of adjustable mortgages and second loans. In addition to fixed-rate mortgages. FNMA’s securities are also highly liquid and are widely accepted. FNMA assumes and guarantees that all security holders will receive timely payment of principal and interest.

FEDERAL OPEN MARKET COMMITTEE (FOMC): Consists of seven members of the Federal Reserve Board and five of the twelve Federal Reserve Bank Presidents. The President of 270
15 the New York Federal Reserve Bank is a permanent member, while the other Presidents serve on a rotating basis. The committee periodically meets to set Federal Reserve guidelines regarding purchases and sales of Government Securities in the open market as a means of influencing the volume of bank credit and money.

FEDERAL RESERVE SYSTEM: The central bank of the United States created by Congress and consisting of a seven member Board of Governors in Washington, DC, 12 regional banks and about 5,700 commercial banks that are members of the system.

GLOBAL INVESTMENT PERFORMANCE STANDARDS: Created by the CFA Institute, a global association for investment management professionals, and are governed by the GIPS Executive Committee. Global Investment Performance Standards (GIPS) are a set of voluntary standards used by investment managers throughout the world to ensure the full disclosure and fair representation of their investment performance. The goal of the standards is to make it possible for investors to compare one firm’s performance against that of another firm.

GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA or Ginnie Mae ):

Securities influencing the volume of bank credit guaranteed by GNMA and issued by mortgage banks, commercial banks, savings and loan associations, and other institutions. Security holder is protected by full faith and credit of the U.S. Government. Ginnie Mae securities are backed by the FHA, VA or FMHM mortgages. The term “pass-throughs” is often used to describe Ginnie Maes.

LEVERAGE: Borrowing funds in order to invest in securities that have the potential to pay earnings at a rate higher than the cost of borrowing.

LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow and reasonable size can be done at those quotes.

LOCAL AGENCY INVESTMENT FUND (LAIF): A pooled investment vehicle for local agencies in California sponsored by the State of California and administered by the State Treasurer.

MARGIN: The difference between the market value of a security and the loan a broker makes using that security as collateral.

MARKET CYCLE: A market cycle is defined as a period of time which includes a minimum of two consecutive quarters of falling interest rates followed by a minimum of two consecutive quarters of rising interest rates.

MARKET VALUE: The price at which a security is traded and could presumably be purchased or sold.
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16 MATURITY: The date upon which the principal or states value of an investment becomes due and payable. The investment’s term or remaining maturity is measured from the settlement date to final maturity.

MEDIUM TERM NOTES: Unsecured, investment-grade senior debt securities of major corporations which are sold in relatively small amounts on either a continuous or an intermittent basis. MTNs are highly flexible debt instruments that can be structured to respond to market opportunities or to investor preferences.

MONEY MARKET: The market in which short-term debt instruments (bills, commercial paper, bankers’ acceptances, etc.) are issued and traded.

MONEY MARKET MUTUAL FUND: A mutual fund that invests exclusively in short-term securities. Examples of investments in money market funds are certificates of deposit and U.S.

Treasury securities. Money market funds attempt to keep their net asset values at $1 per share.

MORTGAGE PASS-THROUGH SECURITIES: A securitized participation in the interest and principal cash flows from a specified pool of mortgages. Principal and interest payments made on the mortgages are passed through to the holder of the security MUNICIPAL SECURITIES: Securities issued by state and local agencies to finance capital and operating expenses.

MUTUAL FUND: An entity which pools the funds of investors and invests those funds in a set of securities which is specifically defined in the fund’s prospectus. Mutual funds can be invested in various types of domestic and/or international stocks, bonds, and money market instruments, as set forth in the individual fund’s prospectus. For most large, institutional investors, the costs associated with investing in mutual funds are higher than the investor can obtain through an individually managed portfolio.

NATIONALLY RECOGNIZED STATISTICAL RATING ORGANIZATION (NRSRO):

A credit rating agency that the Securities and Exchange Commission in the United States uses for regulatory purposes. Credit rating agencies provide assessments of an investment's risk. The issuers of investments, especially debt securities, pay credit rating agencies to provide them with ratings. The three most prominent NRSROs are Fitch, S&P, and Moody's.

NEGOTIABLE CERTIFICATE OF DEPOSIT: A large denomination certificate of deposit which can be sold in the open market prior to maturity.

OFFER: The price asked by a seller of securities. (When you are buying securities, you ask for an offer.) See Asked and Bid.

PORTFOLIO: Collection of securities held by an investor. 272
17 PRIMARY DEALER: group of government securities dealers who submit daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Primary dealers include Securities and Exchange Commission (SEC)-registered securities broker-dealers, banks, and a few unregulated firms.

PRUDENT INVESTOR STANDARD: Governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public funds pursuant to CGC Sections 53600et seq. are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, and managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency. Within the limitations of the CGC Sections 53600 et seq. and considering individual investments as part to an overall strategy, a trustee is authorized to acquire investments as authorized by law.

QUALIFIED PUBLIC DEPOSITORIES: A financial institution which does not claim exemption from the payment of any sale or compensating use or ad valorem taxes under the laws of this state, which has aggregated for the benefit of the commission eligible collateral having a value of not less than its maximum liability and which has been approved by the Public Deposit Protection Commission to hold public deposits.

SAFEKEEPING: A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the bank’s vaults for protection.

SECONDARY MARKET: A market made for the purchase and sale of outstanding issues following the initial distribution.

SECURITIES & EXCHANGE COMMISSION: Agency created by Congress to protect investors in securities transactions by administering securities legislation.

SECURITIES & EXCHANGE COMMISSION (SEC) RULE 15C3-1: An SEC rule setting capital requirements for brokers and dealers. Under Rule 15c3-1, a broker or dealer must have sufficient liquidity in order to cover the most pressing obligations. This is defined as having a certain amount of liquidity as a percentage of the broker/dealer's total obligations. If the percentage falls below a certain point, the broker or dealer may not be allowed to take on new clients and may have restrictions placed on dealings with current client.

SUPRANATIONAL: A Supranational is a multi-national organization whereby member states transcend national boundaries or interests to share in the decision making to promote economic development in the member countries.

TIME CERTIFICATE OF DEPOSIT: A non-negotiable certificate of deposit which cannot be sold prior to maturity.
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18 TOTAL RATE OF RETURN : Represents growth (or decline) in the value of a portfolio, including both capital appreciation and income, as a proportion of the starting market value.

TIME-WEIGHTED RATE OF RETURN : A modified measurement of Total rate of Return which eliminates the effect of the timing of funds flows to and/or from a security or portfolio.

TREASURY BILLS: A non-interest bearing discount security issued by the U.S. Treasury to finance the national debt. Most bills are issued to mature in three months, six months, or one year.

TREASURY BOND: Long-term U.S. Treasury securities having initial maturities of more than 10 years.

TREASURY NOTES: A non-interest bearing discount security issued by the US Treasury to finance the national debt. Most bills are issued to mature in one, two, three, five or ten years.

YIELD: The rate of annual income return on an investment, expressed as a percentage.

CITY OF ORANGE

STATEMENT OF INVESTMENT POLICY
Fiscal Year 2025-26

1.0 INVESTMENT POLICY OVERVIEW

Investments of the City shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio.
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2 b) Liquidity: The investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirements which might be reasonably anticipated. c) Return on Investments : The investment portfolio shall be designed and managed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment objectives, authorized investments and the cash flow needs of the City. The Treasurer’s monthly reports shall include benchmark reporting to define “a market rate of return,” which shall be one of the indices published in a financial journal of wide circulation that are most comparable to the Treasurer’s portfolio. The benchmark shall be used solely as a reference tool. The Treasurer shall not add additional risk to the portfolio in order to attain or exceed the benchmark.

Furthermore, these same individuals are prohibited from undertaking personal investment transactions with any individual with whom business is conducted on behalf of the City.

2.0 OPERATIONS AND PROCEDURES

2.1 SCOPE
a) This SIP applies to all financial assets of the City. These funds are accounted for in the Annual Comprehensive Financial Report and include: General Fund, Special Revenue Funds, Debt Service Funds, Capital Project Funds, Enterprise Funds, and Internal Service Funds.
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3 b) This SIP specifically exempts and does not apply to the following financial assets and investment activities of the City:
(1) CalPERS, OPEB trusts, and the investment of employees’ deferred compensation funds invested pursuant to Government Code Section 53609 (2) Proceeds of City or other debt issues in possession of a trustee or fiscal agent are not considered to be part of the financial assets covered by this policy.

These bond proceeds shall be invested in accordance with the requirements and restrictions outlined in the bond documents.

2.3 INVESTMENT OVERSIGHT COMMITTEE
a) Resolution No. 11387, adopted by the City Council on April 12, 2022, established an Investment and Audit Committee (IAC). The terms and provisions of said Resolution, or as it may be later amended, are incorporated into this SIP by reference as though fully set forth herein. The IAC consists of the Treasurer and four citizen members. 277
4 b) The IAC shall, at least annually and more often if directed by the City Council or agreed by a majority of the IAC, review the City Council’s adopted SIP and report to the City Council its recommendations for any changes, additions or deletions to the SIP. c) The IAC shall monitor the implementation of the City Council’s adopted SIP and annually submit a compliance report to the City Council. d) The IAC shall review reports to the City Council from Treasurer or other pertinent sources and prepare responses as required.
e) The IAC shall meet and report quarterly to the City Council summarizing the IOC meetings and the recommendations of the Investment Advisory Committee. Such report shall contain an unedited copy of the Investment Advisory Committee’s recommendations.

2.4 AUTHORIZED FINANCIAL INSTITUTIONS AND DEALERS
a) Institutions eligible to transact investment business with the City shall include only the following:
(1) Primary government dealers as designated by the Federal Reserve Bank and non-primary government dealers;
(2) Nationally or state-chartered banks;
(3) The Federal Reserve Bank;
(4) Direct issuers of securities eligible for purchase by the City; (5) Institutions licensed by the state as a broker-dealer, as defined in Section 25004 of the Corporations Code, with proof of FINRA certification; and (6) Institutions that are members of a federally regulated securities exchange. b) Selection of financial institutions and broker/dealers authorized to engage in transactions with the City shall be at the sole discretion of the City Treasurer. The Treasurer will maintain a list of financial institutions authorized to provide investment services to the City. These institutions may include "primary" dealers or regional dealers that qualify under Securities and Exchange Commission (SEC) Rule 15c3-1 (uniform net capital rule).
c) The City Treasurer shall obtain information from qualified financial institutions to determine if the institution makes markets in securities appropriate for the City’s needs, can assign qualified sales representatives and can provide written agreements to abide by the conditions set forth in the City of Orange SIP. Investment accounts with all financial institutions shall be standard non-discretionary accounts and may not be margin accounts.
d) All financial institutions which desire to become qualified bidders for investment transactions must supply the Treasurer with the following:
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5 (1) Audited financial statements for the institution’s three most recent fiscal years;
(2) At least three references from California local agencies whose portfolio size, investment objectives and risk preferences are similar to the City’s; (3) A statement certifying that the institution has reviewed the CGC Sections 53600 et seq. and the City’s SIP, and that all securities offered to the City shall comply fully and in every instance with all provisions of the Code and with this SIP; and,
(4) Completed Broker/Dealer Questionnaire.
e) The Treasurer shall conduct an annual review of the financial condition of qualified institutions. In addition, a current financial statement is required to be on file for each qualified institution.
f) Public deposits shall be made only in qualified public depositories within the State of California as established by State law. Deposits shall be insured by the Federal Deposit Insurance Corporation (FDIC) or, to the extent the amount exceeds the insured maximum, shall be collateralized with securities in accordance with State law. g) Selection of broker/dealers used by an external investment adviser retained by the City will be at the sole discretion of the adviser. Where possible, transactions with broker/dealers shall be selected on a competitive basis and their bid or offering prices shall be recorded. If there is no other readily available competitive offering, best efforts will be made to document quotations for comparable or alternative securities. When purchasing original issue instrumentality securities, no competitive offerings will be required as all dealers in the selling group offer those securities at the same original issue price.

2.6 SAFEKEEPING AND DELIVERY
a) To protect against fraud, embezzlement, or losses caused by collapse of individual securities dealers, all securities owned by the City shall be held in safekeeping by the City’s custodial bank, a third party bank trust department, acting as agent for the City under the terms of a custody agreement, and shall be evidenced by safekeeping receipts. b) All security transactions entered into by the City shall be conducted on a standard delivery-versus-payment (DVP) basis, which ensures that securities are deposited with the third party custodian prior to the release of funds. All securities purchased or acquired shall be delivered to the City by book entry, physical delivery or by third party 279
6 custodial agreement as required by CGC Section 53601. Investments in the State Pool or money market mutual funds are undeliverable, and are not subject to delivery or third party safekeeping requirements.
c) On a daily basis, investment trades shall be verified against the bank transactions and broker confirmation tickets to ensure accuracy. On a monthly basis, the custodial asset statement is reconciled with the month end portfolio holdings. On an annual basis, the external auditor confirms investment holdings.

3.0 PERMITTED INVESTMENTS AND RISK MANAGEMENT

3.1 INVESTMENTS AUTHORIZED
The City, as empowered by CGC Sections 53601 et seq. and 16429.1, hereby authorizes the City Treasurer to select investments from among the following:
a) United States Treasury notes, bonds, bills or certificates of indebtedness, or those for which the faith and credit of the United States are pledged for the payment of principal and interest. (Limits: Maximum maturity at purchase 5 years; no other limits.) b) Federal Agencies or United States Government-Sponsored Enterprise obligations, participations, , or other instruments of, or issued by, a federal agency or a United States government-sponsored enterprise. In every case, any issue purchased must be fully guaranteed as to principal and interest by the full faith and credit of the United States, or the issuing federal agency. ( Limits: Maximum maturity at purchase 5 years, no more than 30% of total portfolio in any single agency,the maximum percent of agency callable securities in the portfolio will be 20%, and excluding completely Government National Mortgage Association bonds; i.e., GNMAs.)
c) Shares of beneficial interest issued by diversified management companies that are Money Market Mutual Funds, registered with the Securities and Exchange Commission under the Investment Company Act of 1940 investing in the securities and obligations authorized by CGC Sections 53601(b) and (e) only (i.e., U.S. Government issues only). Such Funds must either carry the highest rating of at least two of the three largest national rating agencies,or such funds must have retained an investment adviser registered with the Securities and Exchange Commission with not less than five year’s experience managing money market mutual funds with assets under management in excess of five hundred million dollars ($500,000,000). ( Limits: maximum 90 days Weighted Average Maturity; maximum concentration $15 million, or 20%, of portfolio, whichever is less.)
d) State of California Local Agency Investment Fund (LAIF) is permitted, with the knowledge that the fund may invest in some vehicles allowed by statute but not otherwise authorized by the City Council in this SIP. The Treasurer shall obtain from the State Treasurer, no less than quarterly, reports providing sufficient detail to adequately judge the risk inherent in the LAIF portfolio, and shall inform the City 280
7 Council immediately of any risks noted that may warrant reconsideration of this investment vehicle. (Limits: $75 million per account as of 1/1/2020.) e) Investment in new Government sponsored pools will be subject to due diligence. A thorough investigation of the pool is required prior to investing, and on a continual basis.
f) Funds held under the terms of a Trust Indenture or other contract or debt issuance agreement may be invested according to the provisions of those indentures or agreements.
g) Negotiable Certificates of Deposit (NCDs), issued by a nationally or state-chartered bank, a savings association or a federal association, a state or federal credit union, or by a federally licensed or state-licensed branch of a foreign bank, provided that: The amount of the NCD insured up to the FDIC limit does not require any credit ratings; any amount above the FDIC limit must be issued by institutions which have short-term obligations rated “A-1” or its equivalent or better, long-term obligations with “A” or its equivalent or better by at least one NRSRO; no more than 30% of the total portfolio may be invested in NCDs; no more than 5% of the total portfolio may be invested in any single issuer; the maximum maturity does not exceed five (5) years. h) Federally Insured Time Deposits (Non-Negotiable Certificates of Deposit) in state or federally chartered banks, savings and loans, or credit unions, provided that: The amount per institution is limited to the maximum covered under federal insurance; no more than 20% of the total portfolio will be invested in a combination of federally insured and collateralized time deposits; the maximum maturity does not exceed five (5) years.
i) Commercial Paper of prime quality in the highest credit category by a nationally recognized statistical ratings organization (NRSRO) issued by a domestic corporation having assets in excess of $500,000,000 and rated in the category of “A” or better by a NRSRO on its debt other than commercial paper as provided by a national rating agency. (Limits: Maximum maturity of 270 days or less; maximum concentration 25% of portfolio may be invested in Commercial Paper. Under a provision sunsetting on January 1, 2026, no more than 40% of the portfolio may be invested in Commercial Paper if the Agency’s investment assets under management are greater than $100,000,000; no more than 5% of the book value of the portfolio funds to a single issuer at time of purchase.)
j) Medium-term notes issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States. ( Limits: Maximum maturity at purchase 5 years; must be rated in the category of “A” or better by a NRSRO; maximum concentration 30% of portfolio and no more than 5% of the book value of the portfolio funds to a single issuer at time of purchase.)
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8 k) Municipal bonds include obligations issued by the State of California and any local agency within the state of California, and registered bonds of any of the other 49 states in addition to California, including bonds payable solely out of the revenues from a revenue producing property owned, controlled, or operated by a state or local agency or by a department, board, agency, or authority of a state or local agency. ( Limits:

Maximum maturity at purchase 5 years; must be rated in the category of “A” or better by a NRSRO; maximum concentration 20% of portfolio and no more than 5% of the book value of the portfolio funds to a single issuer at time of purchase.) l) Asset-Backed, Mortgage-Backed, Mortgage Pass-Through Securities, and Collateralized Mortgage Obligations from issuers not defined in sections (a) or (b) of the authorized investments section of this policy, provided that: The securities are rated in a rating category of “AA” or its equivalent or better by a NRSRO. No more than 20% of the total portfolio may be invested in these securities. No more than 5% of the total portfolio may be invested in any single Asset-Backed or Commercial Mortgage security issuer. The
m) Supranational securities, senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter-American Development Bank which are eligible for purchase in the United States. ( Limits: Maximum remaining maturity of five years or less; Investments under this subdivision shall be rated in a rating category of “AA” or its equivalent or higher by a NRSRO ; maximum concentration of 30% of the portfolio with no more than 10% invested in any one issuer.)

3.2 PROHIBITED INVESTMENT VEHICLES AND PRACTICES
The City Treasurer is prohibited from the following:
a) Borrowing for investment purposes (“Leverage”) is prohibited. b) Buying or selling securities “on Margin” is prohibited. c) Investing in any instrument, which is commonly known as a “derivative” instrument (options, futures, swaps, caps, floors, collars, U.S. Treasury strips, interest only bonds, interest-only strips derived from mortgage pools), or any investment that may result in a zero interest accrual, even if held to maturity, is prohibited. d) Under the provisions of CGC Sections 53601.6 and 53631.5, the City shall not invest any funds covered by this SIP in instruments known as Structured Notes (e.g. inverse floaters, leverage floaters, structured CD’s, range notes, equity-linked securities). Any such investments are prohibited.
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9 e) Trading securities for the sole purpose of speculating on the future direction of interest rates is prohibited.
f) State law notwithstanding, any investments not specifically described herein under Subsections 3.1 a) through 3.1 c) are prohibited.
g) The purchase of a security with a forward settlement date exceeding 45 days from the time of the investment is prohibited.

3.3 MITIGATING RISK IN THE PORTFOLIO
a) Credit Risk:
(1) The City will diversify its investments in accordance with the limits set forth in Subsection 3.1 of this SIP to diminish the credit risk resulting from concentrations.
(2) The City, on occasion, may sell a security prior to its maturity (recording a gain or loss) in order to improve the risk structure, liquidity and yield of the portfolio in response to market conditions.
(3) If any security owned by the City is downgraded to a level below the requirements of this policy, making it ineligible for additional purchases, the following steps will be taken: Any actions taken related to the downgrade by the investment manager will be communicated to the Finance Director and City Treasurer in a timely manner. If a decision is made to retain the security, the credit situation will be monitored and reported to the City Council. b) Market Risk: While the City recognizes that longer term portfolios achieve higher returns, longer term portfolios have higher volatility of total return. The City will limit market risk by limiting the concentrations, volume and duration of its longer term investments, as well as limiting them to funds which are not needed for current year cash flow purposes.
(1) Maturities selected shall provide for stability of income and liquidity, and shall not exceed 5 years from the date of purchase. Funds not required for purposes of meeting specific cash flow needs shall be invested in permitted securities so that securities will mature periodically across the maturity spectrum with a maximum of five years.
(2) The City may, on occasion, sell a security prior to its maturity (recording a gain or loss) in order to diminish the portfolio’s exposure to market risk or reinvest into a better opportunity providing more potential earning to the City’s portfolio.
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10 4.0 REPORTING, REVIEW AND AUDITS

4.1 MONTHLY REPORTS
a) The Treasurer shall submit three monthly investment reports to the City Council, and they shall be submitted within 45 days following the end of the quarter. The monthly reports shall include a complete description of the portfolio, the type of investments, the issuers, maturity dates, par and dollar amounts invested on all securities, the current market values of each component of the portfolio, the source of the portfolio valuation, investments and moneys held by the City, and shall additionally include a description of any of the City’s funds, investments, or programs, that are under the management of contracted parties, including lending programs.
b) The report shall also include performance measures as recommended by the CFA Institute’s Global Investment Performance Standards (GIPS). These shall include a presentation of Total Return using accrual accounting, and a Time-weighted Rate of Return using a monthly valuation and one of the GIPS approved methods of calculation. The report shall also include a presentation of Yield to Maturity. c) The report shall also include the performance of the benchmark described in Subsection

4.3 ANNUAL AUDIT
The Treasurer shall insure that the City’s annual process of independent review by an external auditor will include an appropriate investment review to assure compliance with this policy and acceptable internal controls. The audit shall be presented to the City Council upon its completion.
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11 4.4 SPECIAL AUDITS
The City Council may at any time order an audit of the investment portfolio and/or the Treasurer’s investment practices.

5.0 INVESTMENT POLICY ADOPTION
The SIP shall be reviewed annually by the City Council for consistency with the City’s overall investment objectives regarding preservation of principal, liquidity, return, relevance to current law as well as to current financial and economic trends. Any modifications necessary must be approved separately by the City Council. The SIP shall then be adopted in its entirety, as amended, within 120 days of the fiscal year end by resolution and vote of the City Council at a public meeting.

5.1 INVESTMENT POLICY CERTIFICATION
The 1999-2000 version of this investment policy was certified by the Municipal Treasurer’s Association of the United States and Canada, in June 2000. Recommended changes have been incorporated. In the event of any significant changes in legislation that will require significant changes to the SIP, the City will resubmit the new policy for re- certification.
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12 GLOSSARY
AGENCIES: Federal agency securities
ANNUAL COMPREHENSIVE FINANCIAL REPORT: The official annual report for the City of Orange. It includes five combined statements for each individual fund and account group prepared in conformity with GAAP. It also includes supporting schedules necessary to demonstrate compliance with finance-related legal and contractual provisions, extensive introductory material, and a detailed Statistical Section.

ASKED: The price at which securities are offered.

ASSET BACKED SECURITIES: Securities supported by pools of installment loans or leases or by pools of revolving lines of credit.

BANKERS’ ACCEPTANCE (BA): A draft or bill or exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill, as well as the issuer.

BROKER: A broker brings buyers and sellers together for a commission.

CERTIFICATE OF DEPOSIT (CD): A time deposit with a specific maturity evidenced by a certificate. Large-denomination CD’s are typically negotiable.

COLLATERAL: Securities, evidence of deposit or other property, which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public moneys.

COMMERCIAL PAPER: Short-term, negotiable unsecured promissory notes of corporations.

COUPON: (a) The annual rate of interest that a bond’s issuer promises to pay the bondholder on the bond’s face value. (b) A certificate attached to a bond evidencing interest due on a payment date.
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13 DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account.

DEBENTURE: A bond secured only by the general credit of the issuer.

DISCOUNT SECURITIES: Non-interest bearing money market instruments that are issued a discount and redeemed at maturity for full face value; e.g., US Treasury Bills.

DIVERSIFICATION: Dividing investment funds among a variety of securities offering independent returns.

FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A Federal agency that insures bank deposits, currently up to $250,000 per deposit.

FEDERAL FUNDS RATE: The rate of interest at which Federal funds are traded. This rate is currently pegged by the Federal Reserve through open-market operations.

FEDERAL OPEN MARKET COMMITTEE (FOMC): Consists of seven members of the Federal Reserve Board and five of the twelve Federal Reserve Bank Presidents. The President of 287
14 the New York Federal Reserve Bank is a permanent member, while the other Presidents serve on a rotating basis. The committee periodically meets to set Federal Reserve guidelines regarding purchases and sales of Government Securities in the open market as a means of influencing the volume of bank credit and money.

GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA or Ginnie Mae ):

LEVERAGE: Borrowing funds in order to invest in securities that have the potential to pay earnings at a rate higher than the cost of borrowing.

LOCAL AGENCY INVESTMENT FUND (LAIF): A pooled investment vehicle for local agencies in California sponsored by the State of California and administered by the State Treasurer.

MARGIN: The difference between the market value of a security and the loan a broker makes using that security as collateral.

MARKET VALUE: The price at which a security is traded and could presumably be purchased or sold.
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15 MATURITY: The date upon which the principal or states value of an investment becomes due and payable. The investment’s term or remaining maturity is measured from the settlement date to final maturity.

MONEY MARKET: The market in which short-term debt instruments (bills, commercial paper, bankers’ acceptances, etc.) are issued and traded.

MONEY MARKET MUTUAL FUND: A mutual fund that invests exclusively in short-term securities. Examples of investments in money market funds are certificates of deposit and U.S.

Treasury securities. Money market funds attempt to keep their net asset values at $1 per share.

NATIONALLY RECOGNIZED STATISTICAL RATING ORGANIZATION (NRSRO):

NEGOTIABLE CERTIFICATE OF DEPOSIT: A large denomination certificate of deposit which can be sold in the open market prior to maturity.

OFFER: The price asked by a seller of securities. (When you are buying securities, you ask for an offer.) See Asked and Bid.

PORTFOLIO: Collection of securities held by an investor. 289
16 PRIMARY DEALER: group of government securities dealers who submit daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Primary dealers include Securities and Exchange Commission (SEC)-registered securities broker-dealers, banks, and a few unregulated firms.

SAFEKEEPING: A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the bank’s vaults for protection.

SECONDARY MARKET: A market made for the purchase and sale of outstanding issues following the initial distribution.

SECURITIES & EXCHANGE COMMISSION: Agency created by Congress to protect investors in securities transactions by administering securities legislation.

TIME CERTIFICATE OF DEPOSIT: A non-negotiable certificate of deposit which cannot be sold prior to maturity.
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17 TOTAL RATE OF RETURN : Represents growth (or decline) in the value of a portfolio, including both capital appreciation and income, as a proportion of the starting market value.

TIME-WEIGHTED RATE OF RETURN : A modified measurement of Total rate of Return which eliminates the effect of the timing of funds flows to and/or from a security or portfolio.

TREASURY BILLS: A non-interest bearing discount security issued by the U.S. Treasury to finance the national debt. Most bills are issued to mature in three months, six months, or one year.

TREASURY BOND: Long-term U.S. Treasury securities having initial maturities of more than 10 years.

TREASURY NOTES: A non-interest bearing discount security issued by the US Treasury to finance the national debt. Most bills are issued to mature in one, two, three, five or ten years.

YIELD: The rate of annual income return on an investment, expressed as a percentage.

YIELD TO MATURITY is the calculated rate of return based upon the present value of the cash flow from each interest payment, plus the present value of the cash flow from the investment’s redemption value at maturity vs. the purchase price.
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Agenda Item
City Council
Item #: 3.15. 8/12/2025 File #: 25-0415
TO: Honorable Mayor and Members of the City Council
THRU: Jarad Hildenbrand, City Manager
FROM: Monica Espinoza, Human Resources Director

1. SUBJECT
Side Letter Agreement between the City of Orange and the Orange City Firefighters, Inc. Local 2384 of the International Association of Fire Fighters, AFL-CIO. Resolution No. 11627.

2. SUMMARY
Resolution No. 11627. A Side Letter Agreement between the City of Orange and the Orange City Firefighters, Inc. Local 2384 of the International Association of Fire Fighters, AFL-CIO to update administrative language from Crime Scene Investigator premium to Fire Investigator premium.

3. RECOMMENDED ACTION

1. Adopt Resolution No. 11627. A Resolution of the City Council of the City of Orange establishing a side letter agreement between the City of Orange and the Orange City Firefighters, Inc. Local 2384 of the International Association of Fire Fighters, AFL-CIO, effective July 1, 2020, through and including June 30, 2026.

2. Authorize staff to implement terms and incorporate the Side Letter Agreement into a future Memorandum of Understanding.

4. FISCAL IMPACT
None.

5. STRATEGIC PLAN GOALS
Goal 1: Maintain Strong Emergency and Safety Services

6. DISCUSSION AND BACKGROUND
The City recently became aware that the California Public Employees' Retirement System (CalPERS) reviewed the Memorandum of Understanding (MOU) for the Orange City Firefighters, Inc. Local 2384 of the International Association of Fire Fighters, AFL-CIO as part of a compensation review for an employee who filed for retirement.

As part of this analysis, CalPERS determined that compensation for employees routinely and consistently assigned to investigate causes of destructive burning had been reported as Crime Scene Investigator premium based on the current MOU rather than Fire Investigator premium, pursuant to California Code of Regulations (CCR) 571(a)(4) and 571.1(a)(3).

In order to rectify this matter, a Side Letter Agreement (SLA) is required. CalPERS recommends applying a five-year look-back period as a precaution. This premium only applies to a single City of Orange Printed on 8/7/2025Page 1 of 2
powered by Legistar™
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Item #: 3.15. 8/12/2025 File #: 25-0415
applying a five-year look-back period as a precaution. This premium only applies to a single classification of Fire Inspector/Investigator. Finally, both the SLA and MOU shall remain operative.

7. ATTACHMENT
· Resolution No. 11627
City of Orange Printed on 8/7/2025Page 2 of 2
powered by Legistar™
293
Agenda Item
City Council
Item #: 3.15. 8/12/2025 File #: 25-0415
TO: Honorable Mayor and Members of the City Council
THRU: Jarad Hildenbrand, City Manager
FROM: Monica Espinoza, Human Resources Director

1. SUBJECT
Side Letter Agreement between the City of Orange and the Orange City Firefighters, Inc. Local 2384 of the International Association of Fire Fighters, AFL-CIO. Resolution No. 11627.

3. RECOMMENDED ACTION

2. Authorize staff to implement terms and incorporate the Side Letter Agreement into a future Memorandum of Understanding.

4. FISCAL IMPACT
None.

5. STRATEGIC PLAN GOALS
Goal 1: Maintain Strong Emergency and Safety Services

In order to rectify this matter, a Side Letter Agreement (SLA) is required. CalPERS recommends applying a five-year look-back period as a precaution. This premium only applies to a single City of Orange Printed on 8/7/2025Page 1 of 2
powered by Legistar™
294
Item #: 3.15. 8/12/2025 File #: 25-0415
applying a five-year look-back period as a precaution. This premium only applies to a single classification of Fire Inspector/Investigator. Finally, both the SLA and MOU shall remain operative.

7. ATTACHMENT
· Resolution No. 11627
City of Orange Printed on 8/7/2025Page 2 of 2
powered by Legistar™
295
RESOLUTION NO. 11627

A RESOLUTION OF THE CITY COUNCIL OF

THE CITY OF ORANGE ESTABLISHING A SIDE

LETTER AGREEMENT BETWEEN THE CITY

OF ORANGE AND THE ORANGE CITY
FIREFIGHTERS, INC. LOCAL 2384 OF THE

INTERNATIONAL UNION OF FIRE FIGHTERS
AFL-CIO, EFFECTIVE JULY 1, 2020 THROUGH
AND INCLUDING JUNE 30, 2026

WHEREAS, the City of Orange, hereinafter “City”, and the Orange City Firefighters, Inc.

Local 2384 of the International Union of Fire Fighters AFL-CIO, hereinafter “Union”, are covered by the terms of a Memorandum of Understanding (MOU), adopted via Resolution No. 11521; and

WHEREAS, the City recently became aware that the California Public Employees' Retirement System (CalPERS) reviewed the Memorandum of Understanding (MOU) for the Orange City Firefighters, Inc. Local 2384 of the International Association of Fire Fighters, AFL- CIO as part of a compensation review for an employee who filed for retirement; and

WHEREAS, as part of this analysis, CalPERS determined that compensation for employees routinely and consistently assigned to investigate causes of destructive burning had been reported as Crime Scene Investigator premium based on the current MOU rather than Fire Investigator premium, pursuant to California Code of Regulations (CCR) 571(a)(4) and 571.1(a)(3); and

WHEREAS, in order to rectify this matter, a Side Letter Agreement is required with CalPERS recommends applying a five (5) year look-back period as a precaution.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Orange that the attached Side Letter Agreement is approved and incorporated by reference as Exhibit A.

ADOPTED this ____ day of ____________________, 2025

Daniel R. Slater, Mayor, City of Orange

ATTEST:

Pamela Coleman, City Clerk, City of Orange

296
2 APPROVED AS TO FORM:

Wayne W. Winthers
Interim City Attorney, City of Orange

STATE OF CALIFORNIA )

COUNTY OF ORANGE )

CITY OF ORANGE )

I, PAMELA COLEMAN, City Clerk of the City of Orange, California, do hereby certify that the foregoing Resolution was duly and regularly adopted by the City Council of the City of Orange at a regular meeting thereof held on the ____ day of ________________ 2025 by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

Pamela Coleman, City Clerk, City of Orange

Attachment: Exhibit A

297
3 EXHIBIT A

A SIDE LETTER AGREEMENT

BETWEEN THE CITY OF ORANGE AND
THE ORANGE CITY FIREFIGHTERS, INC. LOCAL 2384 OF THE

INTERNATIONAL UNION OF FIRE FIGHTERS AFL-CIO
EFFECTIVE JULY 1, 2020 THROUGH AND INCLUDING JUNE 30, 2026

This Side Letter Agreement is entered into by and between the City of Orange and the Orange City Firefighters, Inc. Local 2384 of the International Union of Fire Fighters AFL-CIO.

Recitals

A. The City of Orange, hereinafter “City”, and the Orange City Firefighters, Inc. Local 2384 of the International Union of Fire Fighters AFL-CIO, hereinafter “Union”, hereby enter into this Side Letter Agreement with an effective date of July 1, 2020.

B. All references to the “MOU” in this Side Letter Agreement shall be to that Memorandum of Understanding by and between the City and the Union adopted by City Council Resolution No. 11521, or as amended. Except as to those provisions which expressly addressed by this Side Letter Agreement, the terms and conditions of the MOU remain operative.

Agreement

1. The Salaries provision (MOU Article III, Section 1 4) is hereby modified in its entirety as follows:

SECTION 14. FIRE INVESTIGATOR PREMIUM. The Fire Inspector/Investigator assigned to perform duties as Fire Investigator shall receive two hundred fifty dollars ($250.00) per month during the period of such assignment. The Fire Inspector/Investigator is assigned based on operation need by the Fire Chief or duly authorized designee. This form of pay, also referred to as “Fire Investigator Premium”, shall be reported to CalPERS as special compensation, and is therefore compensation earnable for Classic Members pursuant to CalPERS Regulations, Section 571(a)(4), and pensionable compe nsation for PEPRA Members pursuant to CalPERS Regulations, Section 571.1(a)(3). However, it is ultimately CalPERS who determines whether any form of pay is reportable special compensation.

ORANGE CITY FIREFIGHTERS INC.,
LOCAL 2384 OF THE INTERNATIONAL

ASSOCIATION OF FIRE FIGHTERS,

CITY OF ORANGE AFL-CIO

Dated: Dated:

By: By:

Monica Espinoza, Human Resources Director Miguel Gonzalez, President 298
4 APPROVED AS TO FORM:

Wayne W. Winthers
Interim City Attorney
299
Agenda Item
City Council
Item #: 3.16. 8/12/2025 File #: 25-0464
TO: Honorable Mayor and Members of the City Council
THRU: Jarad Hildenbrand, City Manager
FROM: Trang Nguyen, Finance Director

1. SUBJECT
Adoption of Financial Management Policies. Resolution No. 11628.

2. SUMMARY
Approving and adopting Financial Management Policies provides a framework for the annual budget and planning process.

3. RECOMMENDED ACTION
Adopt Resolution No. 11628. A Resolution of the City Council of the City of Orange approving and adopting Financial Management Policies.

4. FISCAL IMPACT
None.

5. STRATEGIC PLAN GOALS
Goal 2: Enhance Economic Development and Achieve Fiscal Sustainability Objective 2.9: Create a fiscal sustainability plan

6. DISCUSSION AND BACKGROUND
On November 26, 2024, the City Council adopted a Strategic Plan, outlining the Council’sgoals and objectives for the next five years, which included a goal to create a fiscal sustainability plan. Staff presented the draft Financial Management Policies (FMPs) (Attachment B) at a regular City Council meeting on March 11, 2025, followed by the Audit Advisory Committee on April 3, and the Investment Advisory Committee on July 23. Comments from all meetings were noted and incorporated in the final FMPs (Attachment C).

Along with some general language edits, some notable revisions were included and are as follows:
· Clarifying the use of Consumer Price Index for All Urban Consumers (CPI-U) to the prior calendar year average instead of the last 10 years’ average; · Identifying the priority of allocating the General Fund operating surpluses; · Clarifying how the General Fund catastrophic reserve will be calculated at budget adoption City of Orange Printed on 8/7/2025Page 1 of 2
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300
Item #: 3.16. 8/12/2025 File #: 25-0464
and trued-up at the end of the fiscal year;
· Adding specific details to the budget status report to include estimated fund balance and significant variances between budget and actual; and
· Emphasizing the annual review process of the phase-in approach to meet the new reserve thresholds.

Once adopted, these policies will provide a framework for the budget and planning process year-to- year, as well as provide clear guidelines for meeting the City’sfund balance reserves ensuring the City’sfiscal sustainability into the future. Moving forward, the FMPS will be reviewed annually during the budget adoption and brought forward should any revisions by necessary.

7. ATTACHMENTS
· Attachment A - Resolution No. 11628
· Attachment B - Draft Financial Management Policies
· Attachment C - Revised Financial Management Policies (redline) · Attachment D - Revised Financial Management Policies (clean) City of Orange Printed on 8/7/2025Page 2 of 2
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301
Agenda Item
City Council
Item #: 3.16. 8/12/2025 File #: 25-0464
TO: Honorable Mayor and Members of the City Council
THRU: Jarad Hildenbrand, City Manager
FROM: Trang Nguyen, Finance Director

1. SUBJECT
Adoption of Financial Management Policies. Resolution No. 11628.

2. SUMMARY
Approving and adopting Financial Management Policies provides a framework for the annual budget and planning process.

3. RECOMMENDED ACTION
Adopt Resolution No. 11628. A Resolution of the City Council of the City of Orange approving and adopting Financial Management Policies.

4. FISCAL IMPACT
None.

5. STRATEGIC PLAN GOALS
Goal 2: Enhance Economic Development and Achieve Fiscal Sustainability Objective 2.9: Create a fiscal sustainability plan

Along with some general language edits, some notable revisions were included and are as follows:
· Clarifying the use of Consumer Price Index for All Urban Consumers (CPI-U) to the prior calendar year average instead of the last 10 years’ average; · Identifying the priority of allocating the General Fund operating surpluses; · Clarifying how the General Fund catastrophic reserve will be calculated at budget adoption City of Orange Printed on 8/7/2025Page 1 of 2
powered by Legistar™
302
Item #: 3.16. 8/12/2025 File #: 25-0464
and trued-up at the end of the fiscal year;
· Adding specific details to the budget status report to include estimated fund balance and significant variances between budget and actual; and
· Emphasizing the annual review process of the phase-in approach to meet the new reserve thresholds.

A RESOLUTION OF THE CITY COUNCIL OF

THE CITY OF ORANGE APPROVING AND

ADOPTING FINANCIAL MANAGEMENT

POLICIES
WHEREAS, the City Council of the City of Orange (“City”) adopted a Strategic Plan in November 2024 which included a goal to create a fiscal sustainability plan; and WHEREAS, to ensure transparency, consistency, and sustainability of the City’s finances now and in the future, staff compiled a draft Financial Management Policies document; and
WHEREAS, these policies provide the public with a comprehensive document that serves as a roadmap for the annual process and guidelines for meeting fund balance reserves to ensure financial sustainability; and
WHEREAS, these policies include guardrails to ensure the financial decision being proposed will support and maintain fiscal responsibility, accountability and sustainability; and
WHEREAS, these policies provide the public with a comprehensive document that serves as a roadmap for the annual process and guidelines for meeting fund balance reserves; and
WHEREAS, these policies provide important definitions, principles and changes that include; structurally balanced budget goal, definition of reserves, changes to the reserve policy, and separation of the reserve policy from the pension policy; and WHEREAS, these policies will be reviewed annually during budget adoption; and
WHEREAS, staff presented a draft of these policies at a regular City Council meeting on March 11, 2025, followed by the Audit Advisory Committee meeting on April 3, 2025; and
WHEREAS, comments from all meetings were noted and incorporated in the final Financial Management Policies.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Orange that the Financial Management Policies in the form attached as Exhibit A, is the final Financial Management Policies for FY 2025-2026.
304
2 ADOPTED this 12th day of August 2025.

Daniel R. Slater, Mayor, City of Orange
ATTEST:

Pamela Coleman, City Clerk, City of Orange
APPROVED AS TO FORM:

Wayne W. Winthers
Interim City Attorney, City of Orange

STATE OF CALIFORNIA )

COUNTY OF ORANGE )

CITY OF ORANGE )
I, PAMELA COLEMAN, City Clerk of the City of Orange, California, do hereby certify that the foregoing Resolution was duly and regularly adopted by the City Council of the City of Orange at a regular meeting thereof held on the _____ day of ________________ 2025, by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

Pamela Coleman, City Clerk, City of Orange
Attachment: Exhibit A – City of Orange Financial Management Policies 305
EXHIBIT “A”

CITY OF ORANGE FINANCIAL MANAGEMENT POLICIES
[Behind this sheet.]
306
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CITY OF ORANGE

FINANCIAL MANAGEMENT POLICIES

I. Purpose and Objectives
The City’s Financial Management Policies (FMPs) purpose and objective is to ensure its long-term fiscal stability and establish controls for sound decision making, for the present and future.

This set of policies is intended to provide a framework to manage the City’s finances in a manner that will support a high level of public safety; maintain the quality of life; and provide excellent service for our residents and business community while maintaining a balanced budget with a healthy reserve to meet known and unknown future obligations.

These FMPs are essential to the fiscal health and contingency plans of the City. They will be reviewed annually during the budget process and, if necessary, recommended changes will be presented to the City Council for consideration at budget adoption.

II. Fiscal Sustainability
The City is committed to fiscal sustainability through its management of expenditures and stewardship of revenue growth through economic development and exploration of other revenue enhancing opportunities.

The City is also committed to maintaining a long -term view of financial planning that anticipates and proactively mitigates risks to preserve public safety, maintain the quality of life of the community, and provide excellence services to residents and businesses, as identified and prioritized through community input.

Fiscal sustainability will be accomplished by these guiding principles:
a. Informed decision-making. City staff will identify and evaluate immediate and long-term economic, social, and environmental impacts of challenges, and present them to the City Council for discussion and consideration.
b. Transparency. The City will conduct all business with transparency, pursuant to applicable laws and regulations. The City will continue to improve transparency and make financial information available in an understandable format for the community. c. Managing long -term liabilities . The City will continue to monitor long -term financial liabilities, including unfunded pension obligations, and commits to taking actions to manage these obligations and ensure transparency to the public. 307
Page | 2

d. Shared responsibility. The City recognizes a shared responsibility between the employee and employer. The City is committed to appropriately fund employee compensation to attract and retain employees while maintaining a long -term sustainable and balanced budget.
e. Seeking efficiency and effectiveness . Staff is committed to continuously exploring ways to operate more efficiently while providing a quality service.

III. Definition
a. Fiscal year – each fiscal year begins on the first day of July and ends on the 30 th day of June.
b. Recurring revenues – revenues that are reasonably expected to continue from year-to-year, with high degree of predictability.
c. One-time revenues – revenues that are one-time in nature or unpredictable. d. Recurring expenditures – expenditures that are reasonably expected to be funded every year to maintain the current level of City services. e. One-time expenditures – expenditures that are unpredictable and are not critical to maintain the current level of services.
f. Surplus - when actual revenue exceed actual expenditure, including transfers. g. Catastrophic reserve – a required, non -discretionary, reserve that the City must maintain as a requirement for the Pension Obligation Bond (POB). h. Restricted reserve – a portion of the fund balance that is set aside for emergencies, economic uncertainty, and fiscal distress.
i. Operating surplus – the excess of total revenues minus the total expenditures within a fiscal year.
j. Unrestricted/excess reserve – a portion of the fund balance that is above the catastrophic and restricted reserve.

IV. Policies
City-wide Budget Policy
a. The City Council will adopt an annual budget for all funds, including the Redevelopment Successor Agency, before the start of the fiscal year, July 1st. b. At a minimum, the budget adoption package shall include the following:
i. A schedule of changes in fund balance for all funds. ii. Statement of revenues for all funds.
iii. Statement of expenditures for all funds.
iv. Five-year Capital Improvement Plan.
c. A copy of the budget shall be certified by the City Clerk as adopted by the City Council and filed as a public record in the office of the City Clerk. 308
Page | 3

d. The Council will annually adopt a resolution establishing the City’s appropriations limit (Gann Limit), calculated in accordance with Article XIII-B of the Constitution of the State of California.
e. A Financial Model shall be reviewed, analyzed, updated, and presented at a City Council meeting as part of the annual City budget process.

General Fund Budget Policy
a. The City will adopt a structurally balanced budget before the start of the fiscal year, July 1st.
i. Recurring revenues supporting recurring expenditures. ii. One-time revenue cannot be used for ongoing expenditure, i.e. salaries and benefits.
b. The City will commit to limiting recurring non-personnel expenditure growth to the average of the reported Consumer Price Index for All Urban Consumers (CPI- U) rates for the Los Angeles-Long Beach-Anaheim area for the prior calendar year (the average CPI-U for 2024 calendar year is 3.3%).
i. Staff will present in detail the areas where the recurring expenditures growth exceeds the average CPI-U.
ii. City Council will approve or provide direction to staff for each area where the recurring expenditures exceeded the average CPI-U.
c. The City will commit to balance the annual operating budget utilizing the following temporary budget balancing strategies*, if necessary:
i. Freeze vacant positions for one year.
ii. Suspend all overnight training, unless it is grant funded, for one year. iii. Suspend non -essential purchases of supplies, materials, equipment, vehicles, services and capital improvement projects , unless it is grant funded, for one year.
*All temporary budget balancing strategies are subject to review annually. d. The City may borrow* fund balances to balance the annual operating budget for unplanned/unforeseen events such as a recession or natural disaster. a. Borrow available fund balance from Internal Service Funds and/or Capital Project Fund.
b. Borrow from Catastrophic Reserve.
*A plan must be proposed and adopted by the City Council and must be paid back in two years.
e. The City will commit to allocating operating surpluses to:
i. Replenish reserves , pri oritizing the General Fund, Workers’ Compensation, General Liability, and Employees Accrued Liability. i. Pay down long-term obligations such as pension obligations , other post- employment benefits, and bonds, and
309
Page | 4

ii. Fund one-time expenses such as deferred maintenance.

Capital Projects Fund Budget Policy
a. The City will approve a Five -year Capital Improvement Plan during the annual budget development.
ii. The budget for the Five -year Capital Improvement Plan is adopted annually.
b. The City will review and update the Five -year Capital Improvement Plan annually, if needed.
c. Future operating costs associated with new capital projects are to be disclosed. d. An Inventory of the City’s physical assets, their condition, and remaining useful life will be maintained.
e. The City will maintain all assets at a sufficient level to protect the City’s capital investment.

Fund Balance Policy
a. Fund balance is essentially the difference between the assets and liabilities reported for the governmental fund. The Government Accounting Standards Board Statement No. 54 (GASB 54) identifies five separate components of fund balance, each of which identifies the specific purposes for which amounts can be spent:
i. Non-spendable – amounts that are not in a spendable form such as inventory.
ii. Restricted – amounts constrained to specific purposes by their providers such as grantors and higher levels of government.
iii. Assigned – amounts identified by the City Council for a specific purpose. iv. Committed – amounts that have been spent for specific purposes determined by the government’s highest level of decision -making authority.
v. Unassigned – amounts that are not classified as non -spendable, restricted, assigned, and committed.

Reserve Policies
a. General Fund
i. During budget development, the General Fund catastrophic reserve will be calculated based on the proposed or adopted budget, excluding transfers out, for the respective fiscal year.
ii. The General Fund catastrophic reserve true-up shall be calculated during year-end closing based on the actual expenditure for the year. iii. Maintain reserves equivalent to 25% of annual General Fund expenditure, excluding transfers out, for the respective fiscal year. 310
Page | 5

1) The City will implement a phase -in approach to achieving the 25% reserve over the next five years. Staff will review the phase- in approach at year-end closing and will make
recommendations to the City Council if needed.
• FY26 – 18%
• FY27 – 20%
• FY28 – 23%
• FY29 – 25%
iv. At the end of the fiscal year, the Finance Department reports on the year- end financial results. Any unrestricted/unassigned fund balance in the General Fund, after providing funding necessary to achieve the minimum reserve levels required by this policy, shall be available for allocation as follows, subject to City Council approval:
1) Replenish reserves in Internal Service Funds and/or Capital Projects Fund.
2) One-time funding, non-recurring needs.
3) Loan repayment acceleration.
v. Upon funding of the above, the decision of any remaining unrestricted/unassigned balances shall be recommended to the City Council by the City Manager or designee.

b. Internal Service Funds
i. Vehicle Replacement Fund - maintain reserves equivalent to 25% of the annual replacement value.
ii. Computer and Technology Replacement Fu nd - maintain reserves equivalent to 25 % of the annual replacement value.
iii. General Liability Fund – implement a phased in approach over the next 2 years to eliminate the negative fund balance. Once resolved, maintain a reserve amount equal to the Present Value of Projected Losses provided by the City’s Self-Insured Pool Administrator (CIPA). Staff will review the phase-in approach at year-end closing and will make recommendations to the City Council if needed.
• FY26 - Eliminate 50% of the negative fund balance
• FY27 - Eliminate remaining 50% negative fund balance
• FY28 - Fund 25% of the annual unpaid claims as of the end of the fiscal year or actuarial estimate provided by the City’s Self - Insured Pool Administrator (CIPA), whichever is higher. 311
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• FY29 - Fund 50% of the annual unpaid claims as of the end of the fiscal year or actuarial estimate provided by the City’s Self - Insured Pool Administrator (CIPA), whichever is higher. • FY30 - Fund 75% of the annual unpaid claims as of the end of the fiscal year or actuarial estimate provided by the City’s Self - Insured Pool Administrator (CIPA), whichever is higher. iv. Workers’ Compensation Fund - Implement a phased in approach over the next 5 years to eliminate the negative fund balance. Once resolved, maintain a reserve amount equal to the Present Value of Projected Losses provided by the City’s Self-Insured Pool Administrator (CIPA). Staff will review the phase -in approach at year -end closing and will make recommendations to the City Council if needed.
1) FY 26-30 - Each year reduce the negative fund balance by at least 20% or more if the General Fund ends the years with excess surplus.
v. Employee Accrued Liabilities Fund - Maintain a reserve equivalent to the compensated absences due within one-year as reported in the prior year Annual Comprehensive Financial Report (ACFR).

c. Capital Projects Fund
i. Maintain a reserve equivalent to 1-year of pavement management or 5% of the total budget for Infrastructure, whichever is higher.

d. Enterprise Funds
i. Water Fund - maintain reserves equivalent to 25% of the annual operating expenditure, excluding transfers out, for the respective fiscal year.
ii. Sanitation Fund - maintain reserves equivalent to 25% of the annual operating expenditure, excluding transfers out, for the respective fiscal year.

Budget Control City-Wide
a. Staff shall provide the City Council with a status report on the budget, as it compares to the adopted budget, at least once during the fiscal year. i. Include estimated fund balances, and
ii. Provide details on any significant variances, +/- 10%, between budget to actual and/or same period last year for both revenue and expenditure. b. Budget revisions are approved as follows:
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i. The City Manager and/or designee may approve transfers in the same fund to meet operational needs.
ii. Transfers between two different funds and transfer s between two different projects must be approved by the City Council. c. Expenditures must be within the appropriation limit or approved budget by the City Council.
d. All non-personnel expenditure must follow the City’s Purchasing Municipal Code. e. No full-time equivalent positions may be added without authorization and budget appropriation by the City Council.
f. All purchase order carryovers and/or continuing appropriations must be approved by the City Council.

Accounting Methodology City-wide
a. The City uses fund accounting to demonstrate compliance with finance -related legal requirements.
b. The City has an independent financial audit conducted each fiscal year. c. Government-wide funds, including General, Special Revenues and Capital Project Funds, are recorded on a modified accrual basis.
i. Revenues are recognized when they are measurable and available. ii. Expenditures are recognized as soon as the liabilities are incurred, except for debt service and capital lease obligations, inventories, and prepaid items.
d. Proprietary funds, which include enterprise and internal service funds, are budgeted on an accrual basis similar to private-sector businesses.

Pension Funding Policy
a. A pension funding policy is a separate policy from the FMP and will be submitted annually to the City Council for review and adoption.
b. This policy was last reviewed and adopted by the City Council per Resolution No. 11528, on February 13, 2024.

Investment Policy
a. An investment policy is a separate policy from the FMP and will be submitted annually to the City Council for review and adoption.
b. This policy was last reviewed and adopted by the City Council per Resolution No. 11563, on June 25, 2024.

CITY OF ORANGE

FINANCIAL MANAGEMENT POLICIES

I. Purpose and ObjecƟves
The City’s Financial Management Policies (FMPs) purpose and objecƟve is ensuring its long-term ﬁscal stability and establishing controls for sound decision making, for the present and future.

This set of policies is intended to provide a framework to manage the City’s ﬁnances in a manner that will support a high level of public safety; maintain the quality of life; and provide excellent service for our residents and business community while maintaining a balanced budget with a healthy reserve to meet known and unknown future obligaƟons.

These FMPs are essenƟal to the ﬁscal health and conƟngency plans of the City. They will be reviewed annually during the budget process and, if necessary, recommended changes will be presented to the City Council for consideraƟon at budget adopƟon.

II. Fiscal Sustainability
The City is commiƩed to ﬁscal sustainability through its management of expenditures and stewardship of revenue growth through economic development and exploraƟon of other revenue enhancing opportuniƟes.

The City is also commiƩed to maintaining a long-term view of ﬁnancial planning that anƟcipates and proacƟvely miƟgate risks to preserve public safety, maintain the quality of life of the community, and provide excellence services to residents and businesses as idenƟﬁed and prioriƟzed through community input.

Fiscal sustainability will be accomplished by these guiding principles:
a. Informed decision-making. City staﬀ will idenƟfy and evaluate immediate and long-term economic, social, and environmental impacts of challenges, and present them to the City Council for discussion and consideraƟon.
b. Transparency. The City will conduct all business with transparency, pursuant to applicable laws and regulaƟons. The City will conƟnue to improve transparency and make ﬁnancial informaƟon available in an understandable format for the community. c. Managing long-term liabiliƟes. The City will conƟnue to monitor long-term ﬁnancial liabiliƟes, including unfunded pension obligaƟons, and commits to taking acƟons to manage these obligaƟons and ensure transparency to the public. 314
Page | 2

d. Shared responsibility. The City recognizes a shared responsibility between the employee and employer. The City is commiƩed to appropriately fund employee compensaƟon to aƩract and retain employees while maintaining a long-term sustainable and balanced budget.
e. Seeking eﬃciency and eﬀecƟveness. Staﬀ is commiƩed to conƟnuously explore ways to operate more eﬃciently while providing a quality service.

III. DeﬁniƟon
a. Fiscal year – each ﬁscal year begins on the ﬁrst day of July and ends on the 30th day of June.
b. Recurring revenues – revenues that are reasonably expected to conƟnue from year-to-year, with some degree of predictability.
c. One-Ɵme revenues – revenues that are one-Ɵme in nature or unpredictable. d. Recurring expenditures – expenditures that are reasonably expected to be funded every year to maintain the current level of City services. e. One-Ɵme expenditures – expenditures that are unpredictable and are not criƟcal to maintain the current level of services.
f. Surplus - when actual revenue exceed actual expenditure, including transfers. g. Catastrophic reserve – a required, non-discreƟonary, reserve that the City must maintain as a requirement for the Pension ObligaƟon Bond (POB). h. Restricted reserve – a porƟon of the fund balance that is set aside for emergencies, economic uncertainty, and ﬁscal distress.
i. OperaƟng surplus – the excess of total revenues minus the total expenditures within a ﬁscal year.
j. Unrestricted/excess reserve – a porƟon of the fund balance that is above the catastrophic and restricted reserve.

IV. Policies
City-wide Budget Policy
a. The City Council will adopt an annual budget for all funds, including the Redevelopment Successor Agency, before the start of the ﬁscal year, July 1st. b. At a minimum, the budget adopƟon package shall include the following:
i. A schedule of changes in fund balance for all funds. ii. Statement of revenues for all funds.
iii. Statement of expenditures for all funds.
iv. Five-year Capital Improvement Plan.
c. A copy of the budget shall be cerƟﬁed by the City Clerk as adopted by the City Council and ﬁled as a public record in the oﬃce of the City Clerk. 315
Page | 3

d. The Council will annually adopt a resoluƟon establishing the City’s appropriaƟons limit (Gann Limit), calculated in accordance with ArƟcle XIII-B of the ConsƟtuƟon of the State of California.
e. A Financial Model should be reviewed, analyzed, updated, and presented at a City Council meeƟng as part of the annual City budget process.

General Fund Budget Policy
a. The City will adopt a structurally balanced budget before the start of the ﬁscal year, July 1st.
i. Recurring revenues supporƟng recurring expenditures. ii. One-Ɵme revenue cannot be used for ongoing expenditures, i.e. salaries and beneﬁts.
b. The City will commit to limiƟng recurring non-personnel expenditure growth to the average of the reported Consumer Price Index for All Urban Consumers (CPI- U) rates for the Los Angeles-Long Beach-Anaheim area for the prior calendar year (the average CPI-U for 2024 calendar year is 3.3%).
i. Staﬀ will present in detail the areas where the recurring expenditures growth exceeds the average CPI-U.
ii. City Council will approve or provide direcƟon to staﬀ for each area where the recurring expenditures exceeded the average CPI-U.
c. The City will commit to balance the annual operaƟng budget uƟlizing the following temporary budget balancing strategies*, if necessary:
i. Freeze vacant posiƟons for one year.
ii. Suspend all overnight training, unless it is grant funded, for one year. iii. Suspend non-essenƟal purchases of supplies, materials, equipment, vehicles, services and capital improvement projects, unless it is grant funded, for one year.
*All temporary budget balancing strategies are subject to review annually. d. The City may borrow* fund balances to balance the annual operaƟng budget for unplanned/unforeseen events such as a recession or natural disaster. a. Borrow available fund balance from Internal Service Funds and/or Capital Project Fund.
b. Borrow from Catastrophic Reserve.
*A plan must be proposed and adopted by the City Council and must be paid back in two years.
e. The City will commit to allocaƟng operaƟng surpluses to:
i. Replenish reserves, prioriƟzing the General Fund, Workers’ CompensaƟon, General Liability, and Employees Accrued Liability. i. Pay down long-term obligaƟons such as pension obligaƟons, other post- employment beneﬁts, and bonds, and
316
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ii. Fund one-Ɵme expenses such as deferred maintenance.

Capital Projects Fund Budget Policy
a. The City will approve a Five-year Capital Improvement Plan during the annual budget development.
ii. The budget for the Five-year Capital Improvement Plan is adopted annually.
b. The City will review and update the Five-year Capital Improvement Plan annually, if needed.
c. Future operaƟng costs associated with the new capital project are to be disclosed.
d. An Inventory of the City’s physical assets, their condiƟon, and remaining useful life will be maintained.
e. The City will maintain all assets at a suﬃcient level to protect the City’s capital investment.

Fund Balance Policy
a. Fund balance is essenƟally the diﬀerence between the assets and liabiliƟes reported for the governmental fund. The Government AccounƟng Standards Board Statement No. 54 (GASB 54) idenƟﬁes ﬁve separate components of fund balance, each of which idenƟﬁes the speciﬁc purposes for which amounts can be spent:
i. Non-spendable – amounts that are not in a spendable form such as inventory.
ii. Restricted – amounts constrained to speciﬁc purposes by their providers such as grantors and higher levels of government.
iii. Assigned – amounts idenƟﬁed by the City Council for a speciﬁc purpose. iv. CommiƩed – amounts that have been spent for speciﬁc purposes determined by the government’s highest level of decision-making authority.
v. Unassigned – amounts that are not classiﬁed as non-spendable, restricted, assigned, and commiƩed.

Reserve Policies
a. General Fund
i. During budget development, the General Fund catastrophic reserve will be calculated based on the proposed or adopted budget, excluding transfers out, for the respecƟve ﬁscal year.
ii. The General Fund catastrophic reserve true-up will be calculated during year-end closing based on the actual expenditure for the year. 317
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iii. Maintain reserves equivalent to 25% of annual General Fund expenditure, excluding transfers out, for the respecƟve ﬁscal year. 1) The City will implement a phase-in approach to achieving the 25% reserve over the next ﬁve years. Staﬀ will review the phase- in approach annually and will make recommendaƟons to the City Council if needed.
 FY26 – 18%
 FY27 – 20%
 FY28 – 23%
 FY29 – 25%
iv. At the end of the ﬁscal year, the Finance Department reports on the year- end ﬁnancial results. Any unrestricted/unassigned fund balance in the General Fund, aŌer providing funding necessary to achieve the minimum reserve levels required by this policy, shall be available for allocaƟon as follows, subject to City Council approval:
1) Replenish reserves in Internal Service Funds and/or Capital Projects Fund.
2) One-Ɵme funding, non-recurring needs.
3) Loan repayment acceleraƟon.
v. Upon funding of the above, the decision of remaining unrestricted/unassigned balances shall be recommended to the City Council by the City Manager or designee.

b. Internal Service Funds
i. Vehicle Replacement Fund - maintain reserves equivalent to 25% of the annual replacement value.
ii. Computer and Technology Replacement Fund - maintain reserves equivalent to 25 % of the annual replacement value.
iii. General Liability Fund – implement a phased in approach over the next 2 years to eliminate the negaƟve fund balance. Once resolved, maintain a reserve amount equal to the Present Value of Projected Losses provided by the City’s Self-Insured Pool Administrator (CIPA). Staﬀ will review the phase-in approach annually and will make recommendaƟons to the City Council if needed.
 FY26 - Eliminate 50% of the negaƟve fund balance
 FY27 - Eliminate remaining 50% negaƟve fund balance
 FY28 - Fund 25% of the annual unpaid claims as of the end of the ﬁscal year or actuarial esƟmate provided by the City’s Self- Insured Pool Administrator (CIPA), whichever is higher. 318
Page | 6

 FY29 - Fund 50% of the annual unpaid claims as of the end of the ﬁscal year or actuarial esƟmate provided by the City’s Self- Insured Pool Administrator (CIPA), whichever is higher.  FY30 - Fund 75% of the annual unpaid claims as of the end of the ﬁscal year or actuarial esƟmate provided by the City’s Self- Insured Pool Administrator (CIPA), whichever is higher. iv. Workers’ CompensaƟon Fund - Implement a phased in approach over the next 5 years to eliminate the negaƟve fund balance. Once resolved, maintain a reserve amount equal to the Present Value of Projected Losses provided by the City’s Self-Insured Pool Administrator (CIPA). Staﬀ will review the phase-in approach annually and will make recommendaƟons to the City Council if needed.
1) FY 26-30 - Each year reduce the negaƟve fund balance by at least 20% or more if the General Fund ends the years with excess surplus.
v. Employee Accrued LiabiliƟes Fund - Maintain a reserve equivalent to the compensated absences due within one-year as reported in the prior year Annual Comprehensive Financial Report (ACFR).

c. Capital Projects Fund
i. Maintain a reserve equivalent to 1-year of pavement management or 5% of the total budget for Infrastructure, whichever is higher.

d. Enterprise Funds
i. Water Fund - maintain reserves equivalent to 25% of the annual operaƟng expenditure, excluding transfers out, for the respecƟve ﬁscal year.
ii. SanitaƟon Fund - maintain reserves equivalent to 25% of the annual operaƟng expenditure, excluding transfers out, for the respecƟve ﬁscal year.

Budget Control City-Wide
a. Staﬀ shall provide the City Council with a status report on the budget, as it compares to the adopted budget, at least once during the ﬁscal year. i. Include esƟmated fund balances, and
ii. Provide details on any signiﬁcant variances, +/- XX%, between budget to actual and/or same period last year for both revenue and expenditure. b. Budget revisions are approved as follows:
319
Page | 7

i. The City Manager and/or designee may approve transfers in the same fund to meet operaƟonal needs.
ii. Interfund transfers, transfers between two diﬀerent funds, and transfers between two diﬀerent projects must be approved by the City Council. c. Expenditures must be within the appropriaƟon limit or approved budget by the City Council.
d. All non-personnel expenditures must follow the City’s Purchasing Municipal Code.
e. No full-Ɵme equivalent posiƟons may be added without authorizaƟon and budget appropriaƟon by the City Council.
f. All purchase order carryovers and/or conƟnuing appropriaƟons must be approved by the City Council.

AccounƟng Methodology City-wide
a. The City uses fund accounƟng to demonstrate compliance with ﬁnance-related legal requirements.
b. The City has an independent ﬁnancial audit conducted each ﬁscal year. c. Government-wide funds, including General, Special Revenues and Capital Project Funds, are recorded on a modiﬁed accrual basis.
i. Revenues are recognized when they are measurable and available. ii. Expenditures are recognized as soon as the liabiliƟes are incurred, except for debt service and capital lease obligaƟons, inventories, and prepaid items.
d. Proprietary funds, which include enterprise and internal service funds, are budgeted on an accrual basis similar to private-sector businesses.

Pension Funding Policy
a. A pension funding policy is a separate policy from the FMP and will be submiƩed annually to the City Council for review and adopƟon.
b. This policy was last reviewed and adopted by the City Council per ResoluƟon No. 11528, on February 13, 2024.

Investment Policy
a. An investment policy is a separate policy from the FMP and will be submiƩed annually to the City Council for review and adopƟon.
b. This policy was last reviewed and adopted by the City Council per ResoluƟon No. 11563, on June 25, 2024.

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321
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CITY OF ORANGE

FINANCIAL MANAGEMENT POLICIES

I. Purpose and ObjecƟves
The City’s Financial Management Policies (FMPs) purpose and objecƟve is ensuringto ensure its long-term ﬁscal stability and establishing controls for sound decision making, for the present and future.

The City is also commiƩed to maintaining a long-term view of ﬁnancial planning that anƟcipates and proacƟvely miƟgatemiƟgates risks to preserve public safety, maintain the quality of life of the community, and provide excellence services to residents and businesses, as idenƟﬁed and prioriƟzed through community input.

d. Shared responsibility. The City recognizes a shared responsibility between the employee and employer. The City is commiƩed to appropriately fund employee compensaƟon to aƩract and retain employees while maintaining a long-term sustainable and balanced budget.
e. Seeking eﬃciency and eﬀecƟveness. Staﬀ is commiƩed to conƟnuously exploreexploring ways to operate more eﬃciently while providing a quality service.

III. DeﬁniƟon
a. Fiscal year – each ﬁscal year begins on the ﬁrst day of July and ends on the 30th day of June.
b. Recurring revenues – revenues that are reasonably expected to conƟnue from year-to-year, with some high degree of predictability.
c. One-Ɵme revenues – revenues that are one-Ɵme in nature or unpredictable. d. Recurring expenditures – expenditures that are reasonably expected to be funded every year to maintain the current level of City services. e. One-Ɵme expenditures – expenditures that are unpredictable and are not criƟcal to maintain the current level of services.
f. Surplus - when actual revenue exceed actual expenditure, including transfers. g. Catastrophic reserve – a required, non-discreƟonary, reserve that the City must maintain as a requirement for the Pension ObligaƟon Bond (POB). h. Restricted reserve – a porƟon of the fund balance that is set aside for emergencies, economic uncertainty, and ﬁscal distress.
i. OperaƟng surplus – the excess of total revenues minus the total expenditures within a ﬁscal year.
j. Unrestricted/excess reserve – a porƟon of the fund balance that is above the catastrophic and restricted reserve.

d. The Council will annually adopt a resoluƟon establishing the City’s appropriaƟons limit (Gann Limit), calculated in accordance with ArƟcle XIII-B of the ConsƟtuƟon of the State of California.
e. A Financial Model should shall be reviewed, analyzed, updated, and presented at a City Council meeƟng as part of the annual City budget process.

General Fund Budget Policy
a. The City will adopt a structurally balanced budget before the start of the ﬁscal year, July 1st.
i. Recurring revenues supporƟng recurring expenditures. ii. One-Ɵme revenue cannot be used for ongoing expendituresexpenditure, i.e. salaries and beneﬁts.
b. The City will commit to controlling limiƟng recurring non-personnel expenditure growth to an the average average of the reported of the last ten years of the Consumer Price Index for All Urban Consumers (CPI-U) rates for the Los Angeles- Long Beach-Anaheim area for the prior calendar year (the average CPI-U for 2024 calendar year is 3.3%)which is currently 2.0%.
i. Staﬀ will present in detail the areas where the recurring expenditures growth exceeds the average CPI-U.
ii. City Council will approve or provide direcƟon to staﬀ for each area where the recurring expenditures exceeded the average CPI-U.
c. The City will commit to balance the annual operaƟng budget uƟlizing the following temporary budget balancing strategies*, if necessary:
i. Freeze vacant posiƟons for one year.
ii. Suspend all overnight training, unless it is grant funded, for one year. iii. Suspend non-essenƟal purchases of supplies, materials, equipment, vehicles, services and capital improvement projects, unless it is grant funded, for one year.
*All temporary budget balancing strategies are subject to review annually. d. The City may borrow* fund balances to balance the annual operaƟng budget for unplanned/unforeseen events such as a recession or natural disaster. a. Borrow available fund balance from Internal Service Funds and/or Capital Project Fund.
b. Borrow from Catastrophic Reserve.
*A plan must be proposed and adopted by the City Council and must be paid back in two years.
e. The City will commit to allocaƟng operaƟng surpluses to:
i. Replenish reserves, pri oriƟzing the General Fund, Workers’ CompensaƟon, General Liability, and Employees Accrued Liability., 324
Page | 4

i. Pay down long-term obligaƟons such as pension obligaƟons, other post- employment beneﬁts, and bonds, and
ii. Fund one-Ɵme expenses such as deferred maintenance.

Capital Projects Fund Budget Policy
a. The City will approve a Five-year Capital Improvement Plan during the annual budget development.
ii. The budget for the Five-year Capital Improvement Plan is adopted annually.
b. The City will review and update the Five-year Capital Improvement Plan annually, if needed.
c. Future operaƟng costs associated with the new capital projects are to be disclosed.
d. An Inventory of the City’s physical assets, their condiƟon, and remaining useful life will be maintained.
e. The City will maintain all assets at a suﬃcient level to protect the City’s capital investment.

ii. The General Fund catastrophic reserve true-up shall be calculated during year-end closing based on the actual expenditure for the year. i.iii. Maintain reserves equivalent to 25% of annual General Fund expenditure, excluding transfers out, for the respecƟve ﬁscal year. 1) The City will implement a phase-in approach to achieving the 25% reserve over the next ﬁve years. Staﬀ will review the phase- in approach at year-end closing and will make
recommendaƟons to the City Council if needed.
 FY26 – 18%
 FY27 – 20%
 FY28 – 23%
 FY29 – 25%
ii.iv. At the end of the ﬁscal year, the Finance Department reports on the year- end ﬁnancial results. Any unrestricted/unassigned fund balance in the General Fund, aŌer providing funding necessary to achieve the minimum reserve levels required by this policy, shall be available for allocaƟon as follows, subject to City Council approval:
1) Replenish reserves in Internal Service Funds and/or Capital Projects Fund.
2) One-Ɵme funding, non-recurring needs.
3) Loan repayment acceleraƟon.
iii.v. Upon funding of the above, the decision of any remaining unrestricted/unassigned balances shall be recommended to the City Council by the City Manager or designee.

b. Internal Service Funds
i. Vehicle Replacement Fund - maintain reserves equivalent to 25% of the annual replacement value.
ii. Computer and Technology Replacement Fund - maintain reserves equivalent to 25 % of the annual replacement value.
iii. General Liability Fund – implement a phased in approach over the next 2 years to eliminate the negaƟve fund balance. Once resolved, maintain a reserve amount equal to the Present Value of Projected Losses provided by the City’s Self-Insured Pool Administrator (CIPA). Staﬀ will review the phase-in approach at year-end closing and will make recommendaƟons to the City Council if needed.
 FY26 - Eliminate 50% of the negaƟve fund balance
 FY27 - Eliminate remaining 50% negaƟve fund balance
326
Page | 6

 FY28 - Fund 25% of the annual unpaid claims as of the end of the ﬁscal year or actuarial esƟmate provided by the City’s Self- Insured Pool Administrator (CIPA), whichever is higher.  FY29 - Fund 50% of the annual unpaid claims as of the end of the ﬁscal year or actuarial esƟmate provided by the City’s Self- Insured Pool Administrator (CIPA), whichever is higher.  FY30 - Fund 75% of the annual unpaid claims as of the end of the ﬁscal year or actuarial esƟmate provided by the City’s Self- Insured Pool Administrator (CIPA), whichever is higher. iv. Workers’ CompensaƟon Fund - Implement a phased in approach over the next 5 years to eliminate the negaƟve fund balance. Once resolved, maintain a reserve amount equal to the Present Value of Projected Losses provided by the City’s Self-Insured Pool Administrator (CIPA). Staﬀ will review the phase-in approach at year-end closing and will make recommendaƟons to the City Council if needed.
1) FY 26-30 - Each year reduce the negaƟve fund balance by at least 20% or more if the General Fund ends the years with excess surplus.
v. Employee Accrued LiabiliƟes Fund - Maintain a reserve equivalent to the compensated absences due within one-year as reported in the prior year Annual Comprehensive Financial Report (ACFR).

c. Capital Projects Fund
i. Maintain a reserve equivalent to 1-year of pavement management or 5% of the total budget for Infrastructure, whichever is higher.

d. Enterprise Funds
i. Water Fund - maintain reserves equivalent to 25% of the annual General Fund expenditureoperaƟng expenditure, excluding transfers out, for the respecƟve ﬁscal year.
ii. SanitaƟon Fund - maintain reserves equivalent to 25% of the annual General Fund operaƟng expenditure, excluding transfers out, for the respecƟve ﬁscal year.

Budget Control City-Wide
a. Staﬀ shall provide the City Council with a status report on the budget, as it compares to the adopted budget, including any recommendaƟon and esƟmated fund balances, at least once during the ﬁscal year .
i. Include esƟmated fund balances, and
327
Page | 7

a.ii. Provide details on any signiﬁcant variances, +/- 10XX%, between budget to actual and/or same period last year for both revenue and expenditure. b. Budget revisions are approved as follows:
i. The City Manager and/or designee may approve transfers in the same fund to meet operaƟonal needs.
ii. Interfund transfers, tTransfers between two diﬀerent funds, and transfers between two diﬀerent projects must be approved by the City Council. c. Expenditures must be within the appropriaƟon limit or approved budget by the City Council.
d. All non-personnel expendituresexpenditure must follow the City’s Purchasing Municipal Code.
e. No full-Ɵme equivalent posiƟons may be added without authorizaƟon and budget appropriaƟon by the City Council.
f. All purchase order carryovers and/or conƟnuing appropriaƟons must be approved by the City Council.

AccounƟng Methodology City-wide
a. The City uses fund accounƟng to demonstrate compliance with ﬁnance-related legal requirements.
b. The City has an independent ﬁnancial audit conducted each ﬁscal year . c. Government-wide funds, including General, Special Revenues and Capital Project Funds, are recorded on a modiﬁed accrual basis.
i. Revenues are recognized when they are measurable and available. ii. Expenditures are recognized as soon as the liabiliƟes are incurred, except for debt service and capital lease obligaƟons, inventories, and prepaid items.
d. Proprietary funds, which include enterprise and internal service funds, are budgeted on an accrual basis similar to private-sector businesses.

Debt Issuance and Management Policy
Commented [MK1]: What is the diﬀerence?
328
Page | 8

a. The Debt Issuance and Management Policy is a separate policy from the FMP . This policy was adopted by the City Council and updated per ResoluƟon No. 11245, on June 9, 2020.

a.
329
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CITY OF ORANGE

FINANCIAL MANAGEMENT POLICIES

ii. Fund one-time expenses such as deferred maintenance.

c. Capital Projects Fund
i. Maintain a reserve equivalent to 1-year of pavement management or 5% of the total budget for Infrastructure, whichever is higher.

Debt Issuance and Management Policy
a. The Debt Issuance and Management Policy is a separate policy from the FMP . This policy was adopted by the City Council and updated per Resolution No. 11245, on June 9, 2020.
336
Agenda Item
City Council
Item #: 3.17. 8/12/2025 File #: 25-0414
TO: Honorable Mayor and Members of the City Council
THRU: Jarad Hildenbrand, City Manager
FROM: Monica Espinoza, Human Resources Director

1. SUBJECT
Memorandum of Understanding between the City of Orange and the Orange Municipal Employees’ Association. Resolution No. 11629.

2. SUMMARY
Resolution No. 11629 establishes a Memorandum of Understanding between the City of Orange and the Orange Municipal Employees’ Association for the period of July 1, 2025 through June 30, 2026.

3. RECOMMENDED ACTION
Adopt Resolution No. 11629. A Resolution of the City Council of the City of Orange rescinding Resolution No. 11511 and approving the Memorandum of Understanding between the City of Orange and the Orange Municipal Employees’Association, concerning wages, hours, and other conditions of employment effective July 1, 2025, through and including June 30, 2026.

4. FISCAL IMPACT
The total cost for this Memorandum of Understanding is approximately $259,800 and will be funded through the General Fund.

5. STRATEGIC PLAN GOALS
Goal 4: Employee Retention and Recruitment

6. DISCUSSION AND BACKGROUND
In March 2025, the City began the collective bargaining process with the Orange Municipal Employees’ Association (OMEA). The current contract between the parties expired on June 30, 2025.

After seven meetings, on July 23, 2025, the parties reached agreement on the terms and conditions of a twelve-month labor contract that includes the following:

TERM July 1, 2025 - June 30, 2026.

COMPENSATION 2.0% Across-the-Board salary increase
effective June 29, 2025.

HOLIDAYS Amend holiday schedule to include Martin
Luther King Jr. as a nine-hour observed
holiday.

VACATION a. Increase vacation accrual rate between
year 6 through year 15 of employee
service. b. Probationary employees accrue
vacation but may not use vacation until six
months of active service is complete.

HEALTH INSURANCE Effective January 1, 2026, increase
monthly contribution to health benefits as
follows: o 2-Party coverage: Increase by
$45.00 to $1,715.00 o Family coverage:

Increase by $75.00 to $2,170.00

EDUCATIONAL ASSISTANCE AND

PROFESSIONAL DEVELOPMENT
Amend article to allow utilization of
Educational Assistance or Professional
Development benefit amount
interchangeably. Amount remains at
$1,500.00 per fiscal year.

UNIFORM ALLOWANCE Add classifications of Traffic Signal Technician I/II, Senior Traffic Signal
Technician, and Traffic Management
Center Technician to be eligible for benefit.

WORK SHOE ALLOWANCE a. Increase work shoe allowance from up to $450.00 to up to $550.00 for eligible
employees. b. Incorporate classification of
Senior Code Compliance Officer to be
eligible for benefit.

NO FURLOUGH OR LAYOFF During the term of this agreement, the City shall not implement any furloughs or
layoffs.

PARITY AGREEMENT Should other non-safety bargaining groups receive salary across-the-board base
salary increases or medical increases, the
City shall provide said adjustments to
OMEA as applicable.

ASSOCIATION RELEASE TIME

TRACKING
All Association release time shall be fully
documented on employee timesheets in a
manner specified by the City.

LANGUAGE CLEANUP Parties have agreed to incorporate
language changes to further clarify existing
MOU practices or provisions. Included in
language cleanup is a retitle of
classification from Planning Aide to
Planning Technician.

City of Orange Printed on 8/7/2025Page 1 of 3
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337
Item #: 3.17. 8/12/2025 File #: 25-0414
TERM July 1, 2025 - June 30, 2026.

COMPENSATION 2.0% Across-the-Board salary increase
effective June 29, 2025.

HOLIDAYS Amend holiday schedule to include Martin
Luther King Jr. as a nine-hour observed
holiday.

HEALTH INSURANCE Effective January 1, 2026, increase
monthly contribution to health benefits as
follows: o 2-Party coverage: Increase by
$45.00 to $1,715.00 o Family coverage:

Increase by $75.00 to $2,170.00

EDUCATIONAL ASSISTANCE AND

PROFESSIONAL DEVELOPMENT
Amend article to allow utilization of
Educational Assistance or Professional
Development benefit amount
interchangeably. Amount remains at
$1,500.00 per fiscal year.

UNIFORM ALLOWANCE Add classifications of Traffic Signal Technician I/II, Senior Traffic Signal
Technician, and Traffic Management
Center Technician to be eligible for benefit.

NO FURLOUGH OR LAYOFF During the term of this agreement, the City shall not implement any furloughs or
layoffs.

PARITY AGREEMENT Should other non-safety bargaining groups receive salary across-the-board base
salary increases or medical increases, the
City shall provide said adjustments to
OMEA as applicable.

ASSOCIATION RELEASE TIME

TRACKING
All Association release time shall be fully
documented on employee timesheets in a
manner specified by the City.

The Orange Municipal Employees’Association took these terms to a vote of their membership and ratified the Tentative Agreement on July 25, 2025. City Council approval is required to finalize this City of Orange Printed on 8/7/2025Page 2 of 3
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338
Item #: 3.17. 8/12/2025 File #: 25-0414
ratified the Tentative Agreement on July 25, 2025. City Council approval is required to finalize this agreement in the form of a Memorandum of Understanding.

7. ATTACHMENT
· Resolution No. 11629
City of Orange Printed on 8/7/2025Page 3 of 3
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339
Agenda Item
City Council
Item #: 3.17. 8/12/2025 File #: 25-0414
TO: Honorable Mayor and Members of the City Council
THRU: Jarad Hildenbrand, City Manager
FROM: Monica Espinoza, Human Resources Director

1. SUBJECT
Memorandum of Understanding between the City of Orange and the Orange Municipal Employees’ Association. Resolution No. 11629.

4. FISCAL IMPACT
The total cost for this Memorandum of Understanding is approximately $259,800 and will be funded through the General Fund.

5. STRATEGIC PLAN GOALS
Goal 4: Employee Retention and Recruitment

After seven meetings, on July 23, 2025, the parties reached agreement on the terms and conditions of a twelve-month labor contract that includes the following:

TERM July 1, 2025 - June 30, 2026.

COMPENSATION 2.0% Across-the-Board salary increase
effective June 29, 2025.

HOLIDAYS Amend holiday schedule to include Martin
Luther King Jr. as a nine-hour observed
holiday.

HEALTH INSURANCE Effective January 1, 2026, increase
monthly contribution to health benefits as
follows: o 2-Party coverage: Increase by
$45.00 to $1,715.00 o Family coverage:

Increase by $75.00 to $2,170.00

EDUCATIONAL ASSISTANCE AND

PROFESSIONAL DEVELOPMENT
Amend article to allow utilization of
Educational Assistance or Professional
Development benefit amount
interchangeably. Amount remains at
$1,500.00 per fiscal year.

UNIFORM ALLOWANCE Add classifications of Traffic Signal Technician I/II, Senior Traffic Signal
Technician, and Traffic Management
Center Technician to be eligible for benefit.

NO FURLOUGH OR LAYOFF During the term of this agreement, the City shall not implement any furloughs or
layoffs.

PARITY AGREEMENT Should other non-safety bargaining groups receive salary across-the-board base
salary increases or medical increases, the
City shall provide said adjustments to
OMEA as applicable.

ASSOCIATION RELEASE TIME

TRACKING
All Association release time shall be fully
documented on employee timesheets in a
manner specified by the City.

City of Orange Printed on 8/7/2025Page 1 of 3
powered by Legistar™
340
Item #: 3.17. 8/12/2025 File #: 25-0414
TERM July 1, 2025 - June 30, 2026.

COMPENSATION 2.0% Across-the-Board salary increase
effective June 29, 2025.

HOLIDAYS Amend holiday schedule to include Martin
Luther King Jr. as a nine-hour observed
holiday.

HEALTH INSURANCE Effective January 1, 2026, increase
monthly contribution to health benefits as
follows: o 2-Party coverage: Increase by
$45.00 to $1,715.00 o Family coverage:

Increase by $75.00 to $2,170.00

EDUCATIONAL ASSISTANCE AND

PROFESSIONAL DEVELOPMENT
Amend article to allow utilization of
Educational Assistance or Professional
Development benefit amount
interchangeably. Amount remains at
$1,500.00 per fiscal year.

UNIFORM ALLOWANCE Add classifications of Traffic Signal Technician I/II, Senior Traffic Signal
Technician, and Traffic Management
Center Technician to be eligible for benefit.

NO FURLOUGH OR LAYOFF During the term of this agreement, the City shall not implement any furloughs or
layoffs.

PARITY AGREEMENT Should other non-safety bargaining groups receive salary across-the-board base
salary increases or medical increases, the
City shall provide said adjustments to
OMEA as applicable.

ASSOCIATION RELEASE TIME

TRACKING
All Association release time shall be fully
documented on employee timesheets in a
manner specified by the City.

The Orange Municipal Employees’Association took these terms to a vote of their membership and ratified the Tentative Agreement on July 25, 2025. City Council approval is required to finalize this City of Orange Printed on 8/7/2025Page 2 of 3
powered by Legistar™
341
Item #: 3.17. 8/12/2025 File #: 25-0414
ratified the Tentative Agreement on July 25, 2025. City Council approval is required to finalize this agreement in the form of a Memorandum of Understanding.

7. ATTACHMENT
· Resolution No. 11629
City of Orange Printed on 8/7/2025Page 3 of 3
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342

RESOLUTION NO. 11629

A RESOLUTION OF THE CITY COUNCIL OF

THE CITY OF ORANGE RESCINDING
RESOLUTION NO. 11511 AND APPROVING

THE MEMORANDUM OF UNDERSTANDING

BETWEEN THE CITY OF ORANGE AND THE
ORANGE MUNICIPAL EMPLOYEES’

ASSOCIATION CONCERNING WAGES,

HOURS, AND OTHER CONDITIONS OF
EMPLOYMENT EFFECTIVE JULY 1, 2025,
THROUGH AND INCLUDING JUNE 30, 2026

WHEREAS, the City of Orange, hereinafter referred to as "City," and the Professional, Technical and Clerical Unit, represented by Orange Municipal Employees’ Association (OMEA), hereinafter referred to as “Association”, collectively the “Parties”, have met and conferred in accordance with requirements of the Meyers-Milias-Brown Act; and

WHEREAS, the have reached agreement on wages, hours, and other terms and conditions of employment effective July 1, 2025 through June 30, 202 6 and the City Council desires to rescind Resolution No. 11511 and amendments thereto for said employees, as set forth in the Memorandum of Understanding, hereinafter referred to as “MOU”.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Orange that the attached MOU is approved and incorporated by reference as Exhibit A as though fully set forth herein and furthermore, staff is authorized to adjust the departmental salary and benefit accounts in the FY26 budget to reflect the cost of the contract provisions.

ADOPTED this ____ day of ____________________, 2025

Daniel R. Slater, Mayor, City of Orange

ATTEST:

Pamela Coleman, City Clerk, City of Orange

343
2 APPROVED AS TO FORM:

Wayne W. Winthers, Interim City Attorney, City of Orange

STATE OF CALIFORNIA )

COUNTY OF ORANGE )

CITY OF ORANGE )

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

Pamela Coleman, City Clerk, City of Orange

Attachment: Exhibit A

344

Exhibit A

MEMORANDUM OF UNDERSTANDING

BETWEEN THE CITY OF ORANGE

AND

THE ORANGE MUNICIPAL EMPLOYEES’

ASSOCIATION

JULY 1, 2025 THROUGH JUNE 30, 2026

345

TABLE OF CONTENTS

Article No Article Title Page No.

I Recognition of Association 1
II Non-Discrimination 1
III Salaries 1
IV Work Week 6
V Probation 6
VI Promotion 7
VII Demotion 7
VIII Reassignment of Compensation Ranges 8
IX Working Out of Class 8
X Overtime/Compensatory Time/Call Back Compensation 9
XI Holidays 11
XII Vacation 13
XIII Part-Time and Temporary Employee Eligibility for Fringe Benefits 14 XIV Leaves of Absence 15
XV Fringe Benefit Administration 20
XVI Health Benefits 21
XVII Educational Assistance, Professional Development, and Wellness Program 22 XVIII Retirement 24
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XIX Miscellaneous 25
XX Travel Expense Allowed 26
XXI Safety and Health 26
XXII City Management Rights and Responsibilities 27
XXIII Employee Organizational Rights and Responsibilities 28 XXIV Grievance Procedure 29
XXV Disciplinary Appeals Procedure 30
XXVI No Strike-No Lockout 31
XXVII Association Release Time 32 XXVIII Layoff Procedure 32
XXIX Scope and Application of Memorandum of Understanding 35 XXX Waiver of Bargaining During Term of Memorandum of Understanding 35 XXXI Emergency Waiver Provision 36
XXXII Memorandum of Understanding Terms Severable 36
XXXIII Term of Memorandum of Understanding, No Layoff or Furlough, and Parity 36 XXXIV Ratification and Execution 37
Appendix A Monthly Salary Ranges 38

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1 ARTICLE I

RECOGNITION OF ASSOCIATION

Pursuant to the provisions of the Employer -Employee Relations Resolution No. 11529 of the City of Orange, hereinafter referred to as "City", for the purpose of meeting its obligations under the Meyers - Milias-Brown Act (Government Code Section 3500 et. seq.), Employer -Employee Relations Resolution No. 11529, or as amended, and this Memorandum of Understanding, hereinafter referred to as “MOU”, has recognized the City of Orange, Orange Municipal Employees’ Association, hereinafter referred to as "Association", as the majority representative of the employee classifications listed within Appendix A.

As majority representative, the Association is empowered to act on behalf of all employees who hold positions in classifications covered by this MOU whether or not they are individually members of the Association.

ARTICLE II

NON-DISCRIMINATION

SECTION 1. The parties mutually recognize and agree to protect the rights of all employees hereby to join and/or participate in protected Association activities or to refrain from joining or participating in protected activities in accordance with the Employer -Employee Relations Resolution and Government Code Sections 3500 et. seq.

SECTION 2. In accordance with Federal and State law, the City and the Association agree that they shall not discriminate against any employee on the basis of actual or perceived race, color, national origin, religion, sex, gender, gender identity, physical or mental disability, medical condition (cancer-related or genetic information), ancestry, marital status, age, sexual orientation, citizenship, pregnancy, childbirth or related medical condition, status as a covered veteran, or service in the uniformed services (as defined by the Uniformed Services Employment and Reemployment Rights Act of 1994) or any other lawfully protected class. The City and the Association shall reopen any provision of this MOU for the purpose of complying with any final order of a Federal or State agency or court of competent jurisdiction requiring a modification or change in any provision or provisions of this MOU in compliance with Federal or State anti-discrimination laws.

ARTICLE III

SALARIES

SECTION 1. BASIC COMPENSATION PLAN. A basic compensation plan is established for all employees covered by this MOU, who are now employed, or will in the future be employed, in any of the designated classification titles listed in this MOU and its attachments.

SECTION 2. SALARIES. Salaries and their effective dates for employees covered by this MOU are listed in Appendix A. The salary and wage schedules shall constitute the basic compensation plan consisting of six (6) steps or rates of pay in each range. The respective ranges shall be identified by 348

2 number and the steps by the letters A to F. The listed salary and wage schedules are based on a forty (40) hour work week.

SECTION 3. HOURLY RATE PART-TIME EMPLOYEES.

A. For all employees who have a regular weekly work sched ule of forty (40) hours, the equivalent hourly rate of pay shall be the monthly rate times twelve (12) divided by two thousand eighty (2,080) annual hours. The hourly rate for persons employed on a regular part -time or temporary basis in an equivalent classification shall be determined in the same manner. In determining the hourly rate as herein provided, compensation shall be made to the nearest half (½) cent.

B. Regular part-time employees who are scheduled to work on an average of at least twenty (20) hours per week on a year-round basis may be considered for advancement to the next higher step upon completion of hours of employment equal to the minimum number of months of service required by full -time employees. One thousand forty ( 1,040) hours of regular part -time employment shall equal six (6) months' service.

SECTION 4. BEGINNING RATES. A new employee of the City shall be paid the rate shown in Step A in the range assigned to the classification for which the employee has been hired, except that on the request of the Department Head under whom the employee will serve, and with the authorization of the Human Resources Director, such employee may be placed at any step depending upon the employee's qualifications.

SECTION 5. SERVICE. The word “service” as used in this MOU, shall be defined to mean continuous, full-time service in an employee’s present classification, service in a higher classification, or service in a classification allocated to the same salary range and having generally similar duties and requirements.

A lapse of service by any employee for a period of time longer than thirty (30) calendar days by reason of resignation or for any length of time due to discharge eliminates the accumulated length of service time of such employee for the purpose of this MOU . Employees re -entering the service of the City shall be considered as a new employee, except that the employee may be re-employed within one (1) calendar year and placed in the same salary step in the appropriate compensation range as the employee was at the time of the separation of employment.

SECTION 6. ADVANCEMENT WITHIN SALARY RANGES. The following regulations shall govern salary advancement:

A. Merit Advancement. An employee shall be considered for advancement through the salary range based only on continuous, meritorious, and efficient performance, and continued improvement by the employee in the effective performance of duties. If merited, advancement through the salary range shall occur after the completion of twenty -six (26) pay periods . A merit increase shall become effective on the first day of the pay period following completion of the length of service required for such advancement. Such merit advancement shall require the following:

1) The Department Head shall file with the Human Resources Director a Personnel Action Form and a completed Performance Evaluation Form recommending the granting or denial of the merit increase and supporting such recommendation with specific reasons 349

3 therefore. If denied by the Human Resources Director, the reason for denial will be provided to the Department Head.

B. Ineligibility for a Step Increase and/or a Delay in Step Increase. An employee is ineligible to receive a step increase while on a leave of absence without pay. Step increases shall be delayed by the amount of time an employee is out on leave without pay status.

C. Special Merit Advancement. When an employee demonstrates exceptional ability and proficiency in the performance of duties, the Department Head may recommend to the Human Resources Director that said employee be advanced to a higher pay step without regard to the minimum length of service provisions contained in this MOU. The Human Resources Director may, on the basis of a Department Head's recommendation, approve and effect such advancement.

D. Length of Service Required When Advancement is Denied. When an employee is not approved for advancement to the next higher salary step, the employee may be reconsidered for such advancement at any subsequent time. This reconsideration shall follow the same steps and shall be subject to the same action as provided in Section 6A.

E. Flexible Staffing. The City shall implement a system of flexible staffing for certain positions in this Association. Employees in the classifications of Building Inspector, Construction Inspector I, Engineering Technician I, Finance Clerk, Assistant Engineer, Assistant Planner, Librarian I, and Traffic Signal Technician I are eligible for the classification of Combination Building Inspector, Construction Inspector II, Engineering Technician II, Senior Finance Clerk, Associate Civil Engineer, Associate Planner, Librarian II, and Traffic Signal Technician II respectively. To qualify for the higher -level position, the employee must be performing at a competent level and have gained the experience and knowledge to perform the full range of journey-level tasks and fulfilling any special requirements based on the judgment of the applicable Department Head with final approval of the Human Resources Director.

SECTION 7. REDUCTION IN SALARY STEPS . Any employee who is being paid on a salary step higher than Step A may be reduced by one (1) or more steps for disciplinary reasons upon the recommendation of the Department Head with the approval of the Human Resources Director.

SECTION 8. BILINGUAL ASSIGNMENT. Employees covered by this MOU may be assigned by the Department Head, with approval of the Human Resources Director, to a bilingual assignment. The Department Head shall determine the number of bilingual assignment positions which are necessary based upon a demonstrable need and frequ ency of use. Employees on bilingual assignment shall receive an additional one hundred forty dollars ($140.00) per month for the duration of the assignment. Employees receiving bilingual assignment compensation may be required to take and pass a proficien cy test on an annual or as needed basis as determined by the Human Resources Department. No permanency or seniority may be obtained in a bilingual assignment and such assignment may be revoked at any time by the Human Resources Director or a duly authorized designee. Such revocation shall not be subject to the grievance procedures in this MOU. No employee shall be required to perform a Bilingual Assignment on a regular basis or employ bilingual skills on a regular basis who is not receiving bilingual pay pursuant to this section. This form of pay, also referred to as “Bilingual Premium”, shall be reported to CalPERS as special compensation, and is therefore compensation earnable for Classic Members pursuant to CalPERS Regulations, Section 571(a)(4), and pensionable compensation for members hired on or after January 1, 2013, as defined by the Public Employees’ Pension Reform Act of 2013 (PEPRA) pursuant to CalPERS 350

4 Regulations, Section 571.1(b)(3). However, it is ultimately CalPERS who determines if any form of pay is reportable special compensation.

SECTION 9. SHIFT DIFFERENTIAL.

A. All Recreation Services Coordinators, regular full-time library personnel and all part-time library personnel budgeted to work twenty (20) hours or more per week on a fiscal year basis herein who are assigned or cover a regularly scheduled shift working after 6:00 p.m. and/or who are assigned or cover a regularly scheduled shift working a Saturday, Sunday, or Holiday, shall be eligible to receive an additional five dollars ($5.00) per hour for all shift hours worked (i.e., only those hours worked after 6:00 p.m., as well as all hours on Saturdays, Sundays, and Holidays).

In no event shall the provisions described within this section apply to any personnel who are holding over, extending, or filling in on an overtime basis their regular work shift. Whenever two (2) or more rates may appear applicable to the same hour or hours worked by any employee, there shall be no pyramiding or adding together of such rates and only the higher applicable rate shall apply.

B. Split Shift Differential. Where management asks an employee to leave their regular shift early and return to work at a later time, the City will provide an additional one dollar ($1.00) per hour, for benefited Library employees only, for each hour worked on their second shift.

C. Senior/Code Compliance Officer and Environmental Compliance Specialist Shift Pay. Senior Code Compliance Officers, Code Compliance Officers, and Environmental Compliance Specialists who are regularly assigned on a weekly basis to work on Saturdays and Sundays shall be eligible to receive an additional five dollars ($5.00) per hour for all hours worked on Saturdays and Sundays in addition to their regular salary.

D. This form of pay, also referred to as "Shift Differential," shall be reported to CalPERS as special compensation, and is therefore compensation earnable for Classic Members pursuant to CalPERS Regulations, Section 571(a)(4), and pensionable compensation fo r PEPRA Members pursuant to CalPERS Regulations, Section 571.1(b)(3). However, it is ultimately CalPERS who determines if any form of pay is reportable special compensation.

SECTION 10. SPECIAL ASSIGNMENTS.

Library Site Supervisor Assignment. Employees classified as Librarian I or Librarian II may be assigned as the “Site Supervisor” by the Department Head or duly authorized designee. Such employees, for the period of such assignment, shall be paid an additional ten percent (10.0%) on top of their current salary.

This form of pay, also referred to as “Special Assignment Pay” shall be reported to CalPERS as special compensation, and is therefore compensation earnable for Classic Members pursuant to CalPERS Regulations, Section 571(a)(4), and pensionable compensation for PEPRA Members pursuant to CalPERS Regulations, Section 571.1(b)(3). However, it is ultimately CalPERS who determines if any form of pay is reportable special compensation.

SECTION 11. CERTIFICATION PREMIUMS. Employees shall be responsible for submitting proof of completion to the department of their eligibility for specialty pays. The effective date is then applied to the pay period following the employee’s submission.
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5 A. California State Water Resources Control Board (SWRCB) Water Distribution Operator Certification:

1) Employees classified as Construction Inspector or Engineering Technician who possess a Grade I Water Distribution Certificate (D -1) shall receive a flat seventy-five dollars ($75.00) per month premium.

2) Employees classified as Construction Inspector or Engineering Technician who possess a Grade II Water Distribution Certificate (D -2) shall receive a flat one hundred dollars ($100.00) per month premium.

3) Employees classified as Assistant Engineer, Associate Civil Engineer, Construction Inspector, Engineering Technician, or Project Engineer assigned to the Water Division who possess a Grade III Water Distribution Certificate (D -3) shall receive a flat one hundred fifty dollars ($150.00) per month premium.

B. California Water Environmental Association (CWEA) Sanitation Certification:

1) Employees classified as Environmental Compliance Specialist who possess a CWEA Grade I Sanitation Certificate shall receive a flat seventy-five dollars ($75.00) per month premium.

2) Employees classified as Environmental Scientist who possess a CWEA Grade III Sanitation Certificate shall receive a flat one hundred dollars ( $100.00) per month premium.

C. An employee who possesses two (2) or more of the above certifications is eligible to receive only the highest grade certificate premium. There shall be no pyramiding of certificate premium.

D. This form of pay, also referred to as “Educational Incentive”, shall be reported to CalPERS as special compensation, and is therefore compensation earnable for Classic Members pursuant to CalPERS Regulations, Section 571(a)(2), and pensionable compensation for PEPRA Members pursuant to CalPERS Regulations, Section 571.1(b)(2). However, it is ultimately CalPERS who determines if any form of pay is reportable special compensation.

SECTION 12. EDUCATIONAL INCENTIVE PROGRAM. Employees with postgraduate degrees (i.e.

Master’s degree or higher) shall be eligible to receive one hundred fifty dollars ( $150.00) per month.

Employees shall be responsible for submitting proof of completion to the department of their eligibility for education pays. The effective date is then applied to the pay period following the employee’s submission. This form of pay, also referred to as “Educational Incentive”, shall be reported to CalPERS as special compensation, and is therefore compensation earnable for Classic Members pursuant to CalPERS Regulations, Section 571(a)(2), and pensionable compensation for PEPRA Members pursuant to CalPERS Regulations, Section 571.1(b)(2). However, it is ultimately CalPERS who determines if any form of pay is reportable special compensation.

352

6 SECTION 13. PERFORMANCE EVALUATIONS. The City shall maintain an employee performance rating system designed to give a fair evaluation of the quantity and quality of work performed by an employee.

A. Performance evaluation reports shall be prepared and recorded in the employee's personnel file for all regular full-time and regular part-time employees as follows:

1) For probationary employees, at mid-point and upon completion of a probationary period.

2) For non-probationary employees, upon completion of the next step and annually thereafter.

B. Prior to the performance evaluation report becoming part of the employee's personnel file, the supervisor and the employee must review the evaluation.

C. When a performance evaluation is recorded in the employee's personnel file a copy of the evaluation shall be given to the employee.

D. The performance evaluation shall be considered a confidential City record and the information shall not be disclosed except on a need-to-know basis as determined by management.

E. Any disputes as to the contents of the evaluation shall first be discussed with the employee's immediate supervisor and may be appealed through the appropriate chain of command up to the Department Head whose decision will be final and binding , and not subject to any appeal or grievance procedure.

ARTICLE IV

WORK WEEK

SECTION 1. The regular work week for all employ ees covered by this MOU shall be forty (40) hours per week.

SECTION 2. The department shall discuss proposed changes in the established work schedule with the affected employees prior to implementation of the change.

ARTICLE V

PROBATION

SECTION 1. NEW HIRE. An employee initially appointed to a classification shall serve a probationary period of twenty-six (26) pay periods during which the employee shall have an opportunity to demonstrate suitability for the job. With the approval of the Human Resources Director, the Department Head may, for just cause, extend the probationary period up to an additional thirteen (13) consecutive pay periods.

The employee shall attain regular status in the classification upon successful completion of the probationary period to the satisfaction of the City. An employee who does not satisfy the standards of the 353

7 classification during the probationary period shall be notified, in writing, and termination or demotion proceedings shall be initiated. A newly hired probationary employee shall not be entitled to appeal a termination or a demotion.

Employees serving an in itial p robationary period are ineligible to compete for closed/promotional recruitment processes.

SECTION 2. PROMOTIONS. An employee promoted to a class ification shall serve a probationary period of twenty-six ( 26) consecutive pay periods during which time the employee shall have an opportunity to demonstrate suitability for the job. Under certain conditions, with the approval of the City Manager, the Department Head may extend the probationary period up to a maximum of an additional thirteen (13) consecutive pay periods. An employee who successfully completes the probationary period shall be considered to have obtained “regular status”. An employee who does not satisfy the standards of the class during the probationary period shall be notified in writing and terminati on or demotion procedures shall be initiated. An employee rejected or laid off during the probationary period from a position to which the employee has been promoted shall be returned to the classification in which the employee had regular status unless the reasons for failure to complete the probationary period would be cause for dismissal.

ARTICLE VI

PROMOTION

SECTION 1. SALARY STEP ASSIGNMENT. When an employee is promoted to a position of a higher classification, the employee may be assigned to Step A in the appropriate range for the higher classification; provided, however, that if such employee is already being paid at a rate equal to or highe r than Step A in the appropriate range for the higher classification, the employee shall be placed in the step in that appropriate salary range as will grant the employee an increase of at least one (1) but no more than three (3) salary steps, at the discretion of the Department Head and the Human Resources Director.

SECTION 2. ELIGIBILITY LIST. When an eligible employee remains in higher bands of a current eligibility list, and a Department Head selects an eligible employee in a lower band, upon request, the eligible employee in the higher band will be notified of the reasons for non-selection.

ARTICLE VII

DEMOTION

When an employee is demoted for disciplinary reasons to a position in a lower classification, the new salary rate shall be assigned to the appropriate salary range for the lower classification and the salary rate shall be reduced by at least one (1) step.

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8 ARTICLE VIII

REASSIGNMENT OF COMPENSATION RANGES

SECTION 1. Any employee who is employed in a classification which is allocated to a different pay range shall retain the same salary in the new range a s previously held in the prior range, and shall retain credit for length of service acquired in the previously held step toward advancement to the next higher step in the new salary range; provided, however:

A. That if such retention shall result in the advancement of more than one step in the old pay range, the Human Resources Director may, at the time of reassignment, place the employee in a step which will result in an increase of only one (1) step.

B. That if the reassignment is to a lower compensation range, the F Step of which is lower than the employee’s existing rate of pay at the time of reassignment, the employee shall continue to be paid at their existing rate of pay until such time as the position shall be reassigned to a compensation schedule which will allow for further salary advancement, or until such time as the employee is promoted to a position assigned to a higher compensation range.

C. That if the reassignment is to a lower compensation range, the F Step of which is higher than the existing rate of pay, the employee shall be placed in that step of the lower compensation range which is closest to, but no lower than the existing rate of pay.

D. The City Manager or a duly authorized designee may reduce the salary range of any classification but shall not be able to increase the range when any position is vacant.

ARTICLE IX

WORKING OUT OF CLASS

SECTION 1. The City may work employees out of classification for up to ten (10) consecutive working days without additional compensation.

SECTION 2. ACTING TIME PAY. An employee shall receive acting time pay, as further defined below, at Step A of the higher class, or five percent ( 5.0%) above the employee's regular salary, whichever is greater, for work performed in the higher classification starting on the eleventh (11th) consecutive working day out of class, and for each consecutive day thereafter an employee works out of class. The Department Head or a duly authorized designee shall assign the employee to work out of classification but shall notify the Human Resources Director prior to the assignment.

A. Temporary Upgrade Pay. When an employee is working out of classification due to an incumbent’s approved leave of absence, said employee shall receive Temporary Upgrade Pay.

Temporary Upgrade Pay, as defined by California Code of Regulations 571(a)(3), is “compensation to employees who are required by their employer or governing board or body to work in an upgraded position/classification of limited duration”.

355

9 For Classic Members, t he above form of compensation shall be reported to CalPERS as special compensation and therefore compensation earnable. However, it is ultimately CalPERS who determines if any form of pay is reportable special compensation. Temporary Upgrade Pay will not be reported to CalPERS as pensionable compensation for PEPRA Members.

B. Out-of-Class Appointment. Out-of-class appointments shall only be made for positions vacated due to voluntary resignation, promotion, demotion or termination. Gov. Code section 20480 of the Public Employees' Retirement Law (PERL) defines an “out -of-class appointment” to mean an appointment to an upgraded position or higher classification by an employer or governing board or body in a vacant position for a limited duration. For purposes of this section, a “vacant position” refers to a position that is vacan t during recruitment for a permanent appointment. A vacant position does not refer to a position that is temporarily available due to another employee's leave of absence (see “Temporary Upgrade Pay” above).

SECTION 3. ELIGIBILITY PERIOD. During the ten (10) consecutive working day eligibility period before an employee is entitled to receive acting time pay, absence for compensatory time and/or vacation shall break consecutiveness and cause the ten (10) consecutive working day eligibility period to start over.

Absences for regularly scheduled holidays, regular days off, jury duty, and/or verifiable sick leave shall not constitute a break in consecutiveness for acting pay eligibility.

SECTION 4. PROMOTION FROM ACTING INTO PERMANENT POSITION . An employee who is promoted from an acting position to that same position on a permanent basis shall receive credit for time served while acting in that position, towards any applicable probationary period for the permanent position, up to a maximum of six (6) months.

ARTICLE X

OVERTIME/COMPENSATORY TIME/CALL BACK COMPENSATION

SECTION 1. OVERTIME COMPENSATION.

A. Compensatory Time. An employee covered by this MOU having an average work week of forty (40) hours shall be eligible for compensatory time for all hours worked in excess of forty (40) hours within the employee's work week. Compensatory time shall be accumulated at the rate of one-quarter (¼) hour of compensatory time for each one-quarter (¼) hour of overtime worked.

B. Premium Overtime. Only time actually worked (i.e., not holiday, vacation, sick leave, or compensatory time) over forty (40) hours in an FLSA work period shall be paid at the premium rate (time and one-half) either in the form of pay or compensatory time.

C. Paid Leave Hours During Holiday Closure. In the event of a City Hall Holiday Closure (during the Christmas/New Year’s Holiday), any paid leave hours (i.e., vacation, compensatory time, or sick leave) used during the Holiday Closure shall count as hours worked for purposes of calculating whether an employee has worked in excess of forty (40) hours within the employee’s regular work week, and for purposes of determining whether the employee will be paid premium overtime. This shall be an exception related to an employee’s entitlement to premium overtime, as defined in Section 1B.
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10 D. An employee may not work overtime without prior approval from their supervisor.

SECTION 2. COMPENSATORY TIME ACCUMULATION. Compensatory time shall be accumulated to the nearest one-quarter (¼) hour increment. Where an employee works less than one-quarter (¼) hour per day of overtime, the employee shall not receive compensatory time, and such time shall not count toward the computation of overtime.

SECTION 3. ELIGIBILITY. In order to be entitled to compensatory time, such compensatory time must be authorized by the Department Head or a duly authorized designee.

SECTION 4 . MAXIMUM COMPENSATORY TIME ACCRUAL . Any accumulated compensatory time accrued in excess of eighty (80) hours per calendar year shall be automatically paid on the first pay period of the new calendar year.

SECTION 5. USE OF COMPENSATORY TIME.

A. Payment of Compensatory Time. Overtime shall be paid at the regular rate of pay or equal time off, when authorized by the Department Head and approved by the City Manager or duly authorized designee.

B. Payment Upon Termination. Employees shall be entitled to receive payment for all accumulated compensatory time upon their termination.

C. Conversion. Employees may convert accumulated compensatory time to cash.

SECTION 6. CALL BACK COMPENSATION. If employees are required to report back to work after completing a normal work shift and have left the City premises and/or work location, they shall be compensated in cash or as compensatory time off at the straight time rate for actual hours of work wit h a minimum of three (3) hours call back compensation, regardless of whether the employee works less than three (3) hours. This provision shall not apply to employees who are continuing on duty. All actual time worked during a call back shall count as time worked toward the forty ( 40) hours for qualifying for premium (time and one -half) overtime under FLSA. Section 8 below denotes compensation provided when an employee is eligible for call back pay and standby pay.

SECTION 7. STANDBY PAY. Employees, assigned by Management to standby status after their regular work hours, will receive two (2) hours per day (Mondays through Fridays) of standby pay at their straight time hourly rate or three (3) hours per day for Saturdays, Sundays, and Holida ys, days where the City closes services (i.e., Holiday Closure), and regular days off (i.e., the employee’s scheduled Friday off as part of the 9/80 schedule). Employees must be capable of performing all duties that would be required if called back to work.

SECTION 8. CALL BACK PAY PLUS STANDBY PAY . Employees who are called back to work pursuant to Section 6 above, and who are assigned by Management to standby status after their regular work hours pursuant to Section 7 above, will receive two (2) hours per day (Mondays through Fridays) of Standby Pay at their straight time hourly rate or three (3) hours per day for Saturdays , Sundays, and Holidays, plus a minimum of two and one-half (2½) hours call back pay at their straight time hourly rate. 357

11 Call back incidents over two and one-half (2½) hours worked shall be paid at the straight time hourly rate.

All actual call back hours worked by an employee on stand-by shall count as time worked toward the forty (40) hours for qualifying for premium overtime (time and one-half) under FLSA.

SECTION 9. TRAINING TIME. Employees who attend City-required training on a regularly scheduled day off including a 9/80 Friday shall receive straight time compensatory time on an hour -for-hour basis on time spent actually attending said training, unless this training time along with other actual hours worked exceeds forty (40) hours in an FLSA work week, in which case such time would qualify for premium overtime (time and one-half) under FLSA. Travel time outside of an employee’s regular work schedule in conjunction with training does not count toward FLSA overtime under this provision.

ARTICLE XI

HOLIDAYS

SECTION 1. HOLIDAY DESIGNATION. Employees covered by this MOU shall receive the following paid nine (9) hour holidays, except item number nine (9) below:

1) January 1st (New Year’s Day)
2) Third Monday of January (Martin Luther King Jr. Day) 3) Third Monday in February (Presidents’ Day)
4) Last Monday in May (Memorial Day)
5) July 4th (Independence Day)
6) First Monday in September (Labor Day)
7) November 11th (Veterans Day)
8) Fourth Thursday in November (Thanksgiving Day)
9) Fourth Friday in November (day after Thanksgiving)

SECTION 2. FLOATING HOLIDAY. The nine (9) hours of floating holiday will accrue on January 1st of each year and is required to be utilized by December 31st of the year for which it was provided. Unused floating holiday hours shall be forfeited. Employees hired after January 1 st of each year shall receive a prorated portion of the nine (9) hours. Floating holiday hours shall be taken at the convenience of the City with approval of the Department Head or duly authorized designee. Probationary employees are provided with, and are eligible to use, Floating Holiday and Holiday Hours according to the guidelines established in this Article, and/or, with approval of the Human Resources Director.

Employees who terminate employment with the City shall receive any remaining portion of their floating holiday in cash reimbursement.

SECTION 3. HOLIDAYS ON CERTAIN DAYS OF THE WEEK. In the event any of the above holidays fall on a Sunday, except Christmas Eve, the following day will be taken in lieu of the actual date on which the holiday falls. When any of the above holidays falls on a Saturday, except Christmas Eve, the preceding Friday will be taken in lieu of the actual date on which the holiday falls. When any of the above holidays, 10) December 24th (Christmas Eve), if it falls on a Monday through Thursday 11) December 25th (Christmas Day)
12) Nine (9) hours of floating holiday time
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12 falls on an employee’s regularly scheduled day off during the week , except Christmas Eve, employees will be credited with nine (9) hours of holiday compensatory time. Accumulated holiday compensatory time must be used by the employee by June 30th of the same fiscal year in which it was accumulated or be forfeited.

SECTION 4. ELIGIBILITY TO RECEIVE HOLIDAY PAY . In order to be eligible to receive holiday pay, an employee must have worked, or be deemed to have worked because of an approved absence (e.g., sick leave, vacation, or compensatory time), the employee's regularly scheduled day before and regularly scheduled day after the holiday. Should an employee fail to work the employee's regularly scheduled day before and after the holiday, or if the employee is on an approved leave of absence without pay, the employee shall not be entitled to holiday pay. Probationary employees are provided with and are eligible to use floating holiday hours, according to the guidelines established in this Article, and/or with approval of the Human Resources Director.

SECTION 5. HOLIDAY DURING VACATION. Should one of the holidays listed above fall during an employee's vacation period while an employee is absent with pay, the employee shall receive holiday pay and no charge shall be made against the employee's accumulated vacation.

SECTION 6. COMPENSATION FOR HOURS WORKED ON OBSERVED CITY HOLIDAYS . All employees required to work on a holiday listed above shall receive, with the approval of their supervisor, holiday pay plus straight time pay for hours worked on the holiday, or time off equal to the number of hours the employee actually worked on the holiday. Employees who work in excess of their regular number of hours on a holiday listed above shall receive double time pay for all such hours actually worked.

Employees shall receive no other compensation for working on a holiday.

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13 ARTICLE XII

VACATION

SECTION 1. VACATION ACCRUAL. All full-time, regular employees accrue paid vacation as follows:

Years of Service Vacation Hours
Per Year
1 80
2 96
3 104
4 112
5 120
6 124
7 128
8 132
9 136
10 140
11 144
12 148
13 152
14 156
15 160
16 164
17 168
18 172
19 176
20 180
21 184
22 188
23 192
24 or more 200

SECTION 2. VACATION USAGE AND ACCUMULATION . Vacation shall be taken at the convenience of the City with the approval of the Department Head or a duly authorized designee. Where possible, such vacation should be taken annually and not accumulated from year to year. Vacation hours not in excess of the equivalent number of hours earned in the immediately preceding twenty-four (24) month period may be accumulated with the permission of the Department Head and the Human Resources Director. Accrual of vacation hours shall cease if the accumulated vacation hours exceed equivalent number of hours earned in the immediately preceding twenty-four (24) month period. Vacation accruals will resume once the employee’s accumulated vacation balance falls below the allowable limit.

Probationary employees accrue vacation but may not use vacation until six (6) months of active City service is complete, except in the event of a City Hall Holiday Closure. For probationary employees who were hired on or after July 1st of their year of hire shall be able to receive advancement of future vacation 360

14 time to cover the holiday closure occurring within their first year of employment. After the holiday closure, the amount of vacation advanced to an employee for the holiday closure must be returned to the employee’s vacation bank at the rate of accrual to restore the negative balance. If the employee separates from employment with the City for any reason before the negative vacation balance is restored, the employee shall not be required to compensate the City for the remaining negative vacation balance a s a result of vacation advanced to cover the closure.

SECTION 3. VACATION CONVERSION. An employee may convert up to fifty percent (50%) of current annual vacation accrual into cash in lieu of time off with pay. An employee requesting such a conversion must meet the eligibility requirements as set forth in Section 2, above, and may so convert twice in a fiscal year, however, the total amount converted per fiscal year shall not exceed fifty percent (50%) of the employee’s annual accrual. Employees serving their initial probationary period shall not be eligible for vacation conversion.

On or before December 15, 2025, and every December 15 th thereafter, a qualified employee who elects to cash out accrued vacation for the following year shall submit written request to the Human Resources Department stating their irrevocable election(s).

The City shall administer the cash out twice annually, starting in June 2026 and every June and December thereafter. The City shall make the cash outs in the second pay period in June and December. Such cash outs shall be paid at the employee's net salary hourly rate of pay.

SECTION 4 . VACATION PAY -OUT UPON TERMINATION . Eligible full -time and part -time employees who terminate their employment with the City shall be paid for all accrued vacation, if any, and the prorated portion of their final accrual. Prorated vacation shall be on the basis of one-twelfth (1/12) of the employee's annual vacation pay for each full month of service.

ARTICLE XIII

PART-TIME AND TEMPORARY EMPLOYEE ELIGIBILITY

FOR FRINGE BENEFITS

SECTION 1. DEFINITIONS . Nothing contained herein shall guarantee to any employee a specified number of hours per day or days per week or weeks per month or months per year of work. Employees who are not defined as full-time employees may be defined as follows:

A. Regular part-time employees shall be those employees scheduled in the budget to work twenty (20) or more hours per week on a year-round basis (52 weeks minus approved leave).

B. Temporary part-time employees shall be those employees scheduled in the budget to work less than twenty (20) hours per week on a year-round basis (52 weeks minus approved leave).

C. Seasonal employees shall be those employees who are scheduled in the budget to work on less than a year-round basis, regardless of total hours worked.

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15 SECTION 2. REGULAR PART-TIME EMPLOYEES. Regular part-time employees shall receive fringe benefits in proportion to the number of hours an employee is scheduled in the budget to work compared to the normal forty (40) hour week on an annual basis.

The annual schedule for all part -time employees shall be on the City's position control and approved in the City's approved budget. This formula of proration shall apply to holiday pay, vacation, sick leave, medical insurance contribution, disability insurance contribution, and retirement contribution.

SECTION 3. TEMPORARY AND SEASONAL EMPLOYEES . Temporary and seasonal employees shall be entitled to receive no fringe benefits provided for in this MOU or in any resolution of the City, except those stated in Article XVIII, Section 2 of this MOU, or unless otherwise provided by Federal and/or State law.

ARTICLE XIV

LEAVES OF ABSENCE

SECTION 1. LEAVE OF ABSENCE WITHOUT PAY . For all regular employees as described herein, the following Leave Without Pay procedure shall apply:

A. After all available leave benefits, including vacation, compensatory time, and other leave benefits have been completely used, a regular employee, not under suspension, may make written application to the Department Head for leave without pay. No such leave will be considered absent a written application from the employee requesting leave.

B. If the Department Head and the Human Resources Director agree that such leave is merited and in the interest of the City, leave may be granted for a period not to exceed six (6) months following the date of expiration of all other allowable leave benefits.

C. An employee is ineligible to receive a step increase while on a leave of absence without pay. Step increases shall be delayed by the amount of time an employee is out on leave without pay status.

D. No employment or fringe benefits such as sick leave, vacation, health insurance, retirement, or any other benefits shall accrue to any employee on leave of absence without pay except as denoted under the FMLA section below. During such leave in excess of five (5) working days, no seniority shall be accumulated.

E. Subject to and consistent with the conditions of the group health, life or disability plan, coverage may be continued during a leave, provided direct payment of the total premium by the employee is made through and as prescribed by the Payroll Division of the City. The City will pay up to six (6) months of the Flexible Benefit Plan contribution for employees who are on long-term disability leave.

F. At the end of such leave, if the employee desires additional leave, written application must be made through the Department Head to the Human Resources Director at least ten (10) days before the end of the six (6) month period, stating the reasons why the additional leave is required and 362

16 why it would be in the best interest of the City to grant such leave of absence. If such additional leave is merited and would still preserve the best interests of the City, the Human Resources Director may approve such extension of the leave of absence for a period not to exceed an additional six (6) months.

G. If the employee does not return to work prior to or at the end of such leave of absence or extension of leave of absence, the City shall consider that the employee has terminated employment with the City.

H. An employee on leave must give the City at least seven (7) days' written notice of intent to return to work prior to returning to work.

I. Any employee who engages in outside employment during said leave of absence without prior notification and approval of the Human Resources Director and Department Head may be subject to termination.

J. Any employee who falsifies the reason for the request for said leave of absence may be terminated for falsifying a request for leave of absence or extension thereof.

K. Such leave shall be granted on the same basis for pregnancy, childbirth, and other medically related conditions, except that such an employee shall retain all seniority rights.

L. Forms setting forth the benefits available and other pertinent information shall be maintained for distribution in the Human Resources Department.

M. Management will allow an employee to take a leave of absence without pay during a City Hall Holiday Closure without having to exhaust all accrued leave benefits on the books. During said closure, employees will not see a reduction in benefits, including no loss of eligibility for holiday pay, if leave without pay hours are used during the closure (i.e., the day after Christmas Day and/or working day before the New Year’s Day).

SECTION 2. JURY DUTY AND WITNESS SERVICE FOR THE CITY.

A. Jury Duty. When required to serve on a jury, all employees shall have time off for a period not to exceed thirty (30) calendar days for each jury duty summons which an employee responds to per calendar year. Employees shall receive their regular pay for the period of actual service required on the jury, provided all jury fees paid to the individual employee are turned over to the City, with the exception of automobile expenses allowed.

If an employee is required to call in for jury service and the court does not need the employee’s service, the employee is expected to report to work. Once an employee has completed jury service, the Certificate of Jury Service must be provided to the immediate supervisor to qualify for jury duty compensation.

B. Witness Service for the City. If an employee is called as a witness, on behalf of the City, the employee shall receive normal pay for time spent by the employee serving as a witness for the City.

Employees shall be required to pay any witness fees that accrue to the employee for witness service to the City as a condition of receiving normal pay while serving as a witness for the City. 363

17 SECTION 3. MILITARY LEAVE OF ABSENCE . If an employee is deployed or required to attend military training, the employee shall be entitled to military leave of absence under the provisions of Federal and State law s including Uniform Services Employment and Re -employment Rights Act (USERRA) and the California Military and Veterans’ Code. Employees must provide a copy of their military orders and Leave and Earnings Statements (LES) if requested, to the Human Resources Department to qualify for a military leave of absence. Any exceptions to this provision shall be considered on a case-by-case basis, with final approval of the Human Resources Director.

SECTION 4. SICK LEAVE . Sick leave with pay shall be allowed, credited, and accumulated in accordance with the following:

A. For employees working a regular forty (40) hour week, eight (8) hours of sick leave will accrue for each month of continuous service. Probationary employees may use accrued sick leave during the probationary period.

B. All non-benefited employees shall receive sick leave as required by State law.

C. Sick leave will be charged at the rate of one -quarter (¼) hour for each one -quarter (¼) hour an employee is absent.

D. Any employee eligible for sick leave with pay may use such leave for the following reasons:

1) Medical, dental, and vision office appointments during work hours when authorized by the Department Head or duly authorized designee; and/or

2) Personal illness or physical incapacity resulting from causes beyond the employee's control; including pregnancy, childbirth and other medically related conditions.

3) For an employee who is a victim of domestic violence, sexual assault, or stalking, for the purposes described in Labor Code sections 230(c) and 230.1(a).

4) No employee shall be eligible or entitled to sick leave with pay for any illness or injury arising out of and in the course of City employment.

E. Sick Leave Application. Sick leave may be applied only to absence caused by illness or injury of an employee and may not extend to absence caused by illness or injury of a member of the employee's family except as provided in Section 5 below.

F. Sick Leave Charged. In any instance involving use of a fraction of a day's sick leave, the minimum charged to the employee’s sick leave account shall be one-quarter (¼) hour, while additional actual absence of over one-quarter (¼) hour shall be charged to the nearest one-half (½) hour. Sick leave shall only be used for the purposes stated, and the Department Head shall be responsible for control of employee abuse of sick leave. Employees may, upon prior notice, be required to furnish a certificate issued by a licensed physician or nurse or other satisfactory written evidence of any subsequent illness.

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18 G. Maximum Accumulation of Sick Leave. Employees shall be allowed to accumulate sick leave to a maximum of nine hundred sixty ( 960) hours. There shall be no accrual of s ick leave hours in excess of such maximum.

H. Retirement from City Service and Entering CalPERS as a Retired Annuitant. Upon retiring from City service and entering CalPERS as a Retired Annuitant, an employee shall receive no pay for the first sixty (60) days of accrued sick leave (0 - 480 hours), but shall receive twenty-five percent (25%) pay for the first thirty (30) days of accrued sick leave after the first sixty (60) days of accrued sick leave (481 - 720 hours), and fifty percent (50%) of all accrued sick leave thereafter (721 - 960 hours).

I. Death of an Employee. Upon the death of an employee while employed by the City, one hundred percent (100%) of all accrued sick leave benefits shall be paid to the beneficiary of the deceased employee. Payment will be made when proper authorization for payment is received from the estate of the decedent employee.

J. Sick Leave Conversion.

1) Eligible employees with sick leave usage of zero (0.0) to thirty-six (36.0) hours per payroll calendar year shall have the option to convert up to thirty (30) hours of their unused sick leave to vacation in the first pay period of the following year.

2) Eligible employees with sick leave usage of thirty-six and one -quarter (36.25) to forty-five (45.0) hours per payroll calendar year shall have the option to convert up to twenty (20) hours of their unused sick leave to vacation in the first pay period of the following year.

3) Sick leave used under the Family and Medical Leave Act (FMLA) shall not be counted towards an employee’s sick leave conversion to vacation total.

4) Employees must have a minimum balance of one hundred forty ( 140) hours of sick leave available after conversion.

5) However, no hours will be converted to vacation if said vacation conversion places the employee’s vacation bank over the maximum allowable accrual. In this case, all sick leave hours eligible for conversion will instead remain in the employee’s sick leave account up to the nine hundred sixty (960) hour limit.

SECTION 5. FAMILY LEAVE . In accordance with the California Family Sick Leave and Paid Sick Leave Acts, employees are allowed up to one-half (½) of their annual accrual of sick leave per calendar year for family related illness or injury, which shall be charged against the employee's accumulated sick leave. Family as used in this subsection is limited to any relation by blood, marriage or adoption who is a member of the employee’s household; and any parent, substitute parent, parent-in-law, spouse, registered domestic partner, child, brother, sister, grandchild or grandparent of the employee, or “designated person” pursuant to AB1041, regardless of place of residence. Benefited part-time employees are allowed to use up to one-half (½) of their annual accrual of sick leave for family leave purposes.

SECTION 6. BEREAVEMENT LEAVE. Regular full-time employees shall be entitled to take up to five (5) days of paid bereavement leave per incident. The following terms and conditions apply:
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19 A. Bereavement leave may only be used upon the death, or critical illness where death appears to be imminent, of the employee's immediate family. "Immediate family" as used in this subsection shall be limited to any relation by blood, marriage, or adoption, who is a member of the employee's household; and any parent, legal guardian, parent -in-law, brother -in-law, sister -in-law, grandparent, grandchild, aunt, uncle, spouse, registered domestic partner, child, brother, sister, or registered domestic partner of the employee, regardless of place of residence.

B. Days of absence due to bereavement leave shall not exceed five (5) working days per incident and shall not be deducted from the employee's accumulated sick leave. An employee on bereavement leave shall inform the immediate supervisor of the fact and the reasons therefor e as soon as possible. Failure to inform the immediate supervisor, within a reasonable period of time, may be cause for denial of bereavement leave with pay for the period of absence.

SECTION 7. WORKERS’ COMPENSATION. Association employees who incur a work-related injury or illness will be eligible to receive Workers’ Compensation benefits according to the State of California’s Division of Workers’ Compensation (DWC) laws and regulations.

A. Temporary Disability. An Association employee shall be granted Temporary Disability in accordance with the current State of California’s Division of Workers’ Compensation laws and regulations. When an Association employee is eligible to receive Temporary Disability payments, the City will contribute additional compensation to allow the employee to receive one hundred percent (100%) of their regular rate of pay, or provide full salary continuance, for the first thirty (30) days starting from the first day of Temporary Disability. The employee will then receive eighty percent (80%) of salary for up to an additional three hundred thirty-five (335) calendar days.

Temporary Disability in excess of three hundred sixty -five (365) days will be provided at the regular temporary disability rate to the current State Workers’ Compensation laws and regulations.

B. Claims Pending Compensation Determination. When a claim is pending a compensability decision while in a delayed or denied status, and the employee is losing time off from work, the employee can use their own accruals (sick, vacation, compensatory time, etc.). If the claim is accepted, the employee’s accruals will be credited based on the dates that meet the Temporary Disability criteria under the State of California’s Division of Workers’ Compensation.

C. Physician Pre-Designation. Before a work-related injury, an employee may elect to pre-designate a qualified medical provider if done in accordance with the State of California’s Division of Workers’ Compensation laws and regulations.

D. Fringe Benefits. An employee receiving Temporary Disability benefits will continue to receive the City’s contribution to the employee’s medical, dental, vision and other applicable insurances.

All authorized deductions will continue as though the employee is on regular wor k status. If the employee has exhausted Temporary Disability benefits, the employee shall be responsible for paying the full premium for the employee’s medical, dental, vision, and other applicable insurances.

E. An employee receiving temporary disability payments in accordance with the current State of California’s Division of Workers’ Compensation laws and regulations may use a prorated amount of accumulated leave (including sick leave, vacation, compensatory time, etc.) to supplement 366

20 temporary disability payments to reach the amount equal to the employee’s full regular pay until the employee’s leave balances reach zero (0). At that time, the employee may request a Leave Without Pay.

SECTION 8. FAMILY AND MEDICAL LEAVE ACT (FMLA). Federal and State laws require the City to provide family and medical care leave for eligible employees. The following provisions set forth employees' and employer's rights and obligations with respect to such leave. Rights and obligations which are not specifically set forth below are set forth in the City’s Employee Handbook. Any provisions not set forth in the Employee Handbook are set forth in the Department of Labor regulations implementing the Federal Family and Medical Leave Act (FMLA) of 1993 and the regulations of the California Fair Employment and Housing Commission implementing the California Family Rights Act (CFRA) (Government Code Section 12945.2). Unless otherwise provided, "Leave" under this article shall mean leave pursuant to the FMLA and CFRA. An employee's request for leave is subject to review and final approval of the Human Resources Director.

A. Amount of Leave. Eligible employees are entitled to a total of twelve (12) work weeks of leave during any twelve ( 12) month period. An employee's entitlement to leave for the birth or placement of a child for adoption or foster care expires twelve ( 12) months after the birth or placement.

B. Calculating the 12-Month Period. The twelve (12) month period for calculating leave entitlement will be a "rolling period" measured backward from the first date leave is taken and continues with each additional leave day taken. Thus, whenever an employee requests leave, the City will look back over the previous twelve (12) month period to determine how much leave has been used in determining how much leave an employee may be entitled to.

C. Use of Other Accrued Leaves While on Leave. If an employee requests leave for any reason permitted under the law, all accrued paid leave must be exhausted (except sick leave) in connection with the leave. This includes vacation, holiday, compensatory time, and other paid leaves. If an employee requests leave for a serious health condition, in addition to exhausting accrued leave, the employee must also exhaust sick leave. The exhaustion of accrued paid leave will run concurrently with FMLA.

D. Required Forms. Employees must fill out required forms, available in the Human Resources Department, including: Request for Family Medical Leave; Medical Certification; Authorization for Payroll Deductions for Benefit Coverage Continuation During Family/Medical Care Leave; and Fitness-for-Duty to return from leave (if applicable).

ARTICLE XV

FRINGE BENEFIT ADMINISTRATION

SECTION 1. ADMINISTRATION. The City reserves the right to select the insurance carrier or administer any fringe benefit programs that now exist or may exist in the future during the term of this MOU.

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21 SECTION 2. SELECTION AND FUNDING . In the administration of the fringe benefit programs, the City shall have the right to select any insurance carrier or other method of providing coverage to fund the benefits included under the terms of this MOU, provided that the benefits of the employees shall be no less than those in existence as of implementation of this MOU.

SECTION 3. CHANGES. If, during the term of this MOU, any change of insurance carrier or method of funding for any benefit provided herein occurs, the City shall notify the Association prior to any change of insurance carrier or method of funding the coverage.

ARTICLE XVI

HEALTH BENEFITS

SECTION 1. HEALTH INSURANCE. The City contracts with CalPERS to make available those health insurance benefits provided under the Public Employees’ Medical and Hospital Care Act (PEMHCA).

A. Flexible Benefits Plan. The City shall provide a Section 125 Flexible Benefits Plan for active full- time and part-time eligible employees and pay the following monthly amounts to provide funds for optional health plans, dental plans, vision plans, health care reimbursement, dependent care, or cash as established by the Internal Revenue Service. The following amounts include the minimum amount required under PEMHCA, which is one hundred fifty-eight dollars ($158.00) per month effective January 1, 2025, and one hundred sixty -two dollars ( $162.00) per month effective January 1, 2026. This contribution may be adjusted annually each January 1 st to the amount set by the CalPERS Board of Administration.

Effective Dates Single 2-Party Family
January 1, 2025 $1,095.00 $1,670.00 $2,095.00
January 1, 2026 $1,095.00 $1,715.00 $2,170.00

B. Any costs in excess of the amounts designated in Section 1A necessary to maintain benefits under any benefits plans selected by the employee shall be borne by the employee.

C. An employee cannot be enrolled in the CalPERS Health Benefits Plan if a spouse is enrolled in the same agency or enrolled in an agency with CalPERS Health unless the employee (or the spouse) is enrolled without being covered as a family member.

D. An employee may choose to not be enrolled in a CalPERS Health Benefits Plan. If an employee chooses not to be enrolled in the health plan, the employee must provide proof of group medical insurance coverage (e.g., coverage under a spouse’s employer’s plan) that is compliant with the Affordable Care Act (ACA ), as determined by the Human Resources Director. Based on determination that group medical insurance coverage is in full force and effect, employees hired prior to January 1, 2020 shall receive nine hundred ninety-five dollars ($995.00) per month toward the Flexible Benefits Plan. Employees hired after January 1, 2020 who elect to waive the City’s medical insurance shall receive four hundred dollars ($400.00) per month.

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22 E. In the event the employee loses eligibility (with documentation), the employee may enroll in the CalPERS Health Benefits Plan pursuant to their rules and regulations. Failure to do so within sixty (60) days, shall result in the City seeking reimbursement of said contributions.

F. Retired Annuitant Contribution. The City shall contribute toward the payment of premiums under the CalPERS Health Benefits Plan to each eligible retire d annuitant of CalPERS to the extent required by law, a contribution of one hundred fifty -eight dollars ($158.00) per month effective January 1, 2025 and one hundred sixty-two dollars ($162.00) per month effective January 1, 2026.

This contribution shall be adjusted annually each January 1st to the amount set by the CalPERS Board of Administration.

SECTION 2. LIFE INSURANCE. The City shall contribute the full premium toward a fifty-thousand dollar ($50,000.00) life insurance policy for each benefited employee.

SECTION 3. LONG TERM DISABILITY INSURANCE. The City shall contribute the full premium toward a long-term disability plan that pays sixty percent (60%) of salary after a sixty (60) day elimination period to a maximum of six thousand dollars ($6,000.00) per month.

SECTION 4 . RETIREMENT HEALTH SAVINGS PLAN (RHSP) TRUST. The City allows the Association to establish an RHSP trust for its employees. The City will not contribute to this plan, as all costs and contributions of the Plan will be borne by the employees. The Association will sponsor said plan, and indemnify and release the City from any and all plan liability. The City will provide logistical payroll support. The responsibility for the maintenance and investment of the plan funds rests solely with the Association.

ARTICLE XVII

EDUCATIONAL ASSISTANCE, PROFESSIONAL DEVELOPMENT,

AND WELLNESS PROGRAM

Educational assistance and professional development reimbursement payments to an employee shall not exceed one thousand five hundred dollars ($1,500.00) in any one (1) fiscal year and the individual must still be employed by the City when the course is completed to qualify for reimbursement.

Courses/purchases must be approved in advance by the Department Head and the Human Resources Director prior to registration. Employees with a future separation date on file are ineligible for this benefit.

SECTION 1. EDUCATIONAL ASSISTANCE . The City will reimburse employees for the cost of tuition, textbooks, health fees, lab fees, and parking fees required for approved accredited college courses, as well as job -required licensing, testing, renewal, and registration fees . An approved course is one designated to directly improve the knowledge of the employee relative to the specific job or courses leading to an accredited degree or certificate program. Reimbursement will be based upon the final grade received. A final grade of C or better qualifies an employee for reimbursement up to the amount specified.

SECTION 2. PROFESSIONAL DEVELOPMENT . The City will reimburse employees for course materials that aid in an employee’s professional development. Reimbursable activities include the following:

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23 A. Attendance at job-related professional conferences, trainings, and seminars; and

B. Payment of membership dues in community or professional organizations; and

C. Purchase of job-related professional journals, books, and other written materials, which further the employee’s knowledge and improve the employee’s effectiveness in performing their duties.

This professional development benefit encourages employees to voluntarily pursue educational and professional development activities beyond those normally budgeted for by their departments . Costs associated with work travel, lodging, meals (or per diem), parking, or other costs as defined in Article XX of this MOU are ineligible for reimbursement under this section.

SECTION 3. WELLNESS REIMBURSEMENT. The City agrees to allow up to three hundred seventy five dollars ($375.00) of the one thousand five hundred dollars ($1,500.00) allotted per fiscal year towards reimbursement for any combination of items A, B, and/or C below that aid in an employee’s wellness .

Requests must be approved by the Human Resources Director prior to purchase or participation.

A. Membership in a health/fitness club;

B. Participation in a weight loss/stop smoking/wellness/fitness program; and

C. Fitness equipment/home gym equipment.

The City will not reimburse employees for any of the above listed activities for family/dependent health- related expenses. Employees with a future separation date on file are ineligible for this benefit.

SECTION 5. EDUCATION PROGRAM FOR BUILDING INSPECTOR/COMBINATION BUILDING INSPECTOR.

A. All employees classified as a Building Inspector or Combination Building Inspector shall be eligible for this program

B. To qualify for the incentive, eligible employees shall become and remain certified by the International Code Council (ICC) as a Combination Building Inspector in one of the following disciplines:

1) Plumbing;

2) Electrical;

3) Mechanical;

4) Plans Examiner; or
5)
Any other discipline approved by the Chief Building Official and Community Development Director that may be offered by ICC in the future.

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24 Failure to maintain certification in the required disciplines through re -examination shall result in such inspector no longer qualifying for the incentive.

C. Employees who qualify as set forth above shall be compensated by an additional one hundred dollars ($100.00) per month. This form of compensation, also referred to as “Educational Pay - International Code Council (ICC) Certificate” , shall be reported to CalPERS as special compensation, and is therefore compensation earnable for Classic Members pursuant to CalPERS Regulations, Section 571(a)(2), and pensionable compensation for PEPRA Members pursuant to CalPERS Regulations, Section 571.1(b)(2). However, it is ultimately CalPERS who determines if any form of pay is reportable special compensation.

D. The City shall pay ICC certification fees upon passing initial and re-certification examinations.

SECTION 6. CERTIFICATION REIMBURSEMENT PROGRAM FOR SENIOR CODE

COMPLIANCE OFFICER, CODE COMPLIANCE OFFICER , ASSISTANT OR ASSOCIATE PLANNER.

Employees classified as a Senior Code Compliance Officer, Code Compliance Officer, or Assistant or Associate Planner, shall be eligible for this program. To qualify for the reimbursement, eligible Code Compliance Officers shall become certified by the California Association of Code Enforcement Officers (CACEO); eligible Planners shall become certified by the American Institute of Certified Planners (AICP). The City shall reimburse up to three hundred dollars ( $300.00) for CACEO and AICP testing fees upon successful completion of the examination.

ARTICLE XVIII

RETIREMENT

SECTION 1. The City participates in the California Public Employees’ Retirement System (CalPERS).

This participation shall include, but is not limited to, the following retirement benefits:

A. PEPRA Members. Miscellaneous employees who are PEPRA Members of CalPERS as defined by California Government Code Section 7522.04(f) are subject to the 2% @ age 62 retirement formula as set forth in California Government Code Section 7522.20. PEPRA Members are subject to the three (3) year final compensation measurement period as set forth in California Government Code Section 7522.32. PEPRA Members shall contribute half of normal cost of retirement as determined by CalPERS from their pensionable compensation, on a pre -tax basis, as set forth in California Government Code Section 7522.30. In all other respects, PEPRA Members shall be subject to the terms and requirements of PEPRA.

B. Classic Members . Miscellaneous employees who are not defined as PEPRA Members as outlined in Section A above are defined as Classic Members of CalPERS and are subject to the

2.7% @ age 55 retirement formula as set forth in California Government Code Section 21362.2. Classic Members are subject to the one (1) year final compensation measurement period set forth in California Government Code Section 20042. Classic Members shall contribute eight percent (8.0%) of their compensation earnable, on a pre-tax basis. 371

25 SECTION 2. PART-TIME EMPLOYEES. Part-time employees not covered under the Public Employees’ Retirement System shall participate in a defined contribution retirement plan in lieu of Social Security contributions. The City shall contribute three and three -fourths percent (3.75%) of the employee’s eligible earnings toward the retirement plan. Part -time employees shall contribute three and three-fourths percent (3.75%) of their eligible earnings toward the retirement plan.

SECTION 3. 1959 CALPERS SURVIVOR BENEFIT. The City provides the 1959 CalPERS Survivor Benefit at the Fourth Level Option as forth in California Government Code Section 21574 for all covered employees. Employees shall pay their two dollar ($2.00) monthly contribution through payroll deduction.

The City shall pay the employer portion subject to the following limit: six dollars ( $6.00) per month.

Employees shall pay any portion of the employer portion that exceeds six dollars ($6.00) monthly.

ARTICLE XIX

MISCELLANEOUS

SECTION 1. RIDESHARE INCENTIVE PROGRAM. An employee may receive thirty dollars ($30.00) per month and eight (8) hours of paid time off (to a maximum accrual of sixteen (16) hours) every six (6) months for carpooling, using public transportation, biking, walking, or other approved modes of transportation to commute to and from the worksite. To qualify for these incentives, an employee must use one (1) of the above modes of transportation a minimum of seventy percent (70%) of their commuting time.

SECTION 2. UNIFORMS.

A. The City may purchase uniforms for designated classifications within the Association. All uniforms and/or safety equipment purchased by the City shall remain the property of the City.

B. Employees in the classifications of Senior Traffic Signal Technician, Stock Clerk, Traffic Management Center Technician, Traffic Signal Technician I/II, and Warehouse/Inventory Specialist shall receive up to one hundred thirty -five dollar ($135.00) reimbursement allowance for the purchase of blue work pants (including but not limited to blue jeans, Dickies, Red Kap) as determined by the Department Director or their designee. This form of pay, also referred to as “Uniform Allowance”, shall be reported to Cal PERS as special compensation, and is therefore compensation earnable for Classic Members pursuant to CalPERS Regulations, Section 571(a)(5).

However, it is ultimately CalPERS who determines if any form of pay is reportable special compensation.; Uniform allowance is not pensionable compensation for PEPRA Members.

SECTION 3. WORK SHOE VOUCHER. Employees in designated classifications covered by this MOU may be required to wear compression resistant footwear (safety footwear) while on duty. An employee classified as Assistant Engineer, Associate Civil Engineer, Building Inspector, Buyer, Code Compliance Officer, Combination Building Inspector I/II, Construction Inspector I/II, Contract Administrator, Engineering Technician I/II, Environmental Compliance Specialist, Environmental Scientist, Senior Code Compliance Officer, Senior Traffic Signal Technician, Stock Clerk, Traffic Signal Technician I/II, and Warehouse/Inventory Specialist, will receive up to five hundred fifty dollars ($550.00) per fiscal year for 372

26 safety boots allowance. An inspection of the work site will be made on a regular basis to ascertain compliance with this safety shoe program.

SECTION 4. BREAKS. Employees are entitled to two (2) fifteen (15) minute breaks, unless an emergency requires continued work, as determined by the employee's supervisor. An employee shall be permitted to take one (1) break during the first half of the work shift and one (1) break during the second half of the work shift. Breaks shall be scheduled to ensure that public counters and telephones are covered at all times during the regular working day and are intended to provide a period of relaxation and/or nutrition during each half of the work shift. If a break is not taken, it shall not be accumulated, but shall be lost and not charged in the future to the City.

SECTION 5. DIRECT DEPOSIT. City employees are required to participate in the City’s direct paycheck deposit program.

SECTION 6. SHORT-TERM DISABILITY INSURANCE. The City shall administer payroll deductions for an employee-funded short-term disability insurance plan. The Association will indemnify and release the City from all liabilities related to the selected plan, and the City shall not incur cost as a result of this action.

ARTICLE XX

TRAVEL EXPENSE ALLOWED

The City has established a Travel and Business Expense Reimbursement policy ( Administrative Policy Number 4.13) to reimburse City employees when conducting City business, attending business or professional conferences, training seminars, or other travel on authorized City business.

Any employee who is required to travel in the performance of their duties or to attend an authorized meeting or conference or otherwise incurs expenses relating to the conduct of City business shall be reimbursed for reasonable expenses incurred for transportation, meals, lodging, and incidentals as outlined in the Finance Policy referenced above.

Travel related to Professional Development as outlined in Article XVII, Section 3 is excluded from this provision.

ARTICLE XXI

SAFETY AND HEALTH

SECTION 1. The City and its employees agree to comply with all applicable Federal, State, and Local laws as well as any City policies which relate to health and safety. In addition, the City and the Association agree to actively pursue the continuation of safe working procedures and environments.

SECTION 2. SAFETY EQUIPMENT. All protective clothing or protective devices required of employees in the performance of their duties shall be furnished without cost to the employees by the City. 373

27 ARTICLE XXII

CITY MANAGEMENT RIGHTS AND RESPONSIBILITIES

SECTION 1. The City reserves, retains, and is vested with, solely and exclusively, all rights and responsibilities of Management which have not been expressly abridged by specific provisions of this MOU or by law to manage the City, as such rights and responsibilities existed prior to the execution of this MOU. The sole and exclusive rights of Management, as they are not abridged by this MOU or by law, shall include, but not be limited to, the following rights:

A. To manage the City generally and to determine issues of policy.

B. To determine the existence or non-existence of facts which are the basis of Management decisions.

C. To determine the necessity of organization of any service or activity conducted by the City and expand or diminish services.

D. To determine the nature, manner, means, and technology, and extent of services to be provided to the public.

E. To determine methods of financing.

F. To determine the types of equipment or technology to be used.

G. To determine and/or change the facilities, methods, technology, means, and size of the workforce by which the City operations are to be conducted.

H. To determine and change the number of locations, relocations, and types of operations, processes, and materials to be used in carrying out all City functions including, but not limited to, the right to contract for or subcontract any work or operation of the City.

I. To assign work to and schedule employees in accordance with requirements as determined by the City, and to establish and change work schedules and assignments.

J. To relieve employees from duties for lack of work, economic conditions, or similar non - disciplinary reasons.

K. To establish and modify productivity and performance programs and standards.

L. To discharge, suspend, demote, or otherwise discipline employees for proper cause.

M. To determine job classifications and to reclassify employees and to determine the job classifications to be assigned to the Association.

N. To hire, transfer, promote, and demote employees for non-disciplinary reasons in accordance with this MOU.

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28 O. To determine policies, procedures, and standards for selection, training, and promotion of employees.

P. To establish employee performance standards including, but not limited to, quality and quantity standards; and to require compliance therewith.

Q. To maintain order and efficiency in its facilities and operations.

R. To establish, modify, and promulgate reasonable rules and regulations which are not in contravention with this MOU to maintain order and safety in the City.

S. To take any and all necessary action to carry out the mission of the City in emergencies.

SECTION 2. Except in emergencies, or where the City is required to make changes in its operations because of the requirements of law, whenever the contemplated exercise of Management's rights shall impact on a significant number of employees of the Association, the C ity agrees to meet and confer in good faith with representatives of the Association regarding the impact of the contemplated exercise of such rights prior to exercising such rights, unless the matter of the exercise of such rights is provided for in this M OU or in Personnel Rules and Salary Resolutions and Administrative Policies, which are incorporated in this MOU. By agreeing to meet and confer with the Association as to the impact and the exercise of any of the foregoing City Rights, Management's discretion in the exercise of these rights shall not be diminished.

ARTICLE XXIII

EMPLOYEE ORGANIZATIONAL RIGHTS AND RESPONSIBILITIES

SECTION 1. ASSOCIATION DEDUCTIONS. The City shall deduct Association dues and supplemental benefit payments from employee paychecks on a bi-weekly basis. The City shall process these deductions based on the information certified to be current by the Association. The total amount of deduction shall be remitted by the City to the Association within ten (10) calendar days of each applicable payday.

SECTION 2. INDEMNIFICATION. The Association agrees to hold the City harmless and indemnify the City against any claims, causes of actions, or lawsuits arising out of the deductions or transmittal of such funds to the Association, except the intentional failure of the City to transmit, to the Association, monies deducted from the employees pursuant to this Article.

SECTION 3. NEWLY HIRED EMPLOYEES. The City will provide the Association with a list of any new hires into the bargaining unit within thirty ( 30) days of receipt of a request for such list by the Association.

SECTION 4 . POSTING OF NOTICES . The Association shall be afforded the opportunity to post Association bulletins, updates, and notices pertaining to Association business and meetings.

SECTION 5. USE OF CITY FACILITIES. Upon prior notice and subject to availability, the City shall allow the Association to use City facilities for membership, Board of Directors, and committee meetings. 375

29 ARTICLE XXIV

GRIEVANCE PROCEDURE

SECTION 1. DEFINITION OF GRIEVANCE. A grievance shall be defined as a timely complaint by an employee or group of employees of the Association concerning the interpretation or application of specific provisions of this MOU or of the Rules and Regulations governing personnel practices or working conditions of the City. An employee complaint concerning their own discipline shall be processed in accordance with Article XXV.

SECTION 2. BUSINESS DAYS. Business days mean s those days in which the City’s administrative offices are open.

SECTION 3. TIME LIMITS FOR FILING WRITTEN FORMAL GRIEVANCES . The time limits for filing written formal grievances shall be strictly construed, but may be extended by mutual agreement evidenced, in writing, and signed by a duly authorized representative of the City and the grieving party.

Failure of the grieving party to comply with any of the time limits set forth hereunder shall constitute waiver and bar further processing of the grievance. Failure of the City to comply with time limits set forth in this Section shall automatically move the grievance to the next level in the Grievance Procedure . The grieving party may request the assistance of the Association in presenting a grievance at any level of review or may represent themselves.

SECTION 4. INFORMAL GRIEVANCE PROCESS . An employee must first attempt to resolve a grievance on an informal basis by discussion with an immediate supervisor without undue delay. Every effort shall be made to find an acceptable solution to the grievance by these informal means at the most immediate level of supervision. At no time may the informal process go beyond the division head concerned. In order that this informal procedure may be responsive, all parties involved shall expedite this process. In no case may more than ten (10) business days elapse from the date of the alleged incident giving rise to the grievance, or when the grievant knew or should have reasonably become aware of the facts giving rise to the grievance and the filing of a written formal grievance with the Human Resources Director of the City, with a copy to the Department Head in which the employee works. Should the grievant fail to file a written grievance within ten (10) business days from the date of the incident giving rise to the grievance, or when grievant knew or should have reasonably become aware of the facts giving rise to the grievance, the grievance shall be barred and waived.

SECTION 5. FORMAL GRIEVANCE PROCESS, HUMAN RESOURCES DIRECTOR, DEPARTMENT HEAD. If the grievance is not resolved through the informal process, and the written grievance is filed within the time limits set forth above, the grievant shall discuss the grievance with the Human Resources Director and the Department Head within ten ( 10) business days. The Human Resources Director and the Department Head shall render a decision and comments, in writing, regarding the merits of the grievance and return them to the grievant within five (5) business days following the grievance discussion.

SECTION 6. FORMAL GRIEVANCE PROCESS, CITY MANAGER. If the grievance is not resolved in Section 5 above, or if no answer has been received from the Human Resources Director and Department Head within fifteen ( 15) business days from the presentation of the written grievance to the Human Resources Director and Department Head , the grievant may present a written grievance to the City 376

30 Manager, or a duly authorized designee within ten (10) business days, for determination. Failure of the grievant to take this action shall constitute a waiver and bar to the grievance, and the grievance will be considered settled on the basis of the last Management grievance response. The City Manager, or duly authorized designee, shall render a final decision on the merits of the grievance and comments, in writing, and return them to the grievant within ten (10) business days after receiving the grievance. After this procedure is exhausted, the grievant, Association, and the City shall have rights and remedies to pursue said grievance under the law. The City shall instruct its supervisors on the proper use and implementation of this grievance procedure and every reasonable effort shall be made by the employee and sup ervisor to resolve the grievance at the informal step.

ARTICLE XXV

DISCIPLINARY APPEALS PROCEDURE

SECTION 1. DISCIPLINARY APPEALS . Any employee who has obtained regular status, and any promotional probationary employee shall have the right to appeal any termination, suspension, reduction in salary, or non-probationary demotion. The right to appeal shall not apply to probationary, non-benefited part-time, temporary, or seasonal employees covered by this MOU. Verbal or written reprimands, probationary demotions, performance evaluations, and denial of merit increases are not subject to appeal.

However, an employee may submit a written rebuttal to any verbal or written reprimand. In addition, the employee may also request said reprimand be withdrawn from their official personnel record after one (1) year. However, such removal shall be at the sole, non -grievable discretion of the Human Resources Director.

SECTION 2. MANAGER’S FORMAL DISCIPLINARY APPEALS PROCESS. An employee desiring to appeal a supervisor’s decision to take disciplinary action shall have up to ten (10) business days after receipt of the notice of intent to discipline to file either a verbal or written appeal to the Department Head.

If, within the appeal period, the employee does not file an appeal, unless good cause for the failure is shown, the disciplinary action shall be considered final and shall take effect as prescribed. If the employee does file a notice of appeal within the appeal period, the Department Head shall consider the merits of said appeal prior to implementation of any disciplinary action. In the event the Department Head upholds the disciplinary action, said action shall be implemented immediately.

An employee may appeal the Department Head’s decision to the City Manager or, duly authorized designee, as long as such designee is not a manager from the department of the employee filing said appeal. An employee may appeal any termination, suspension, reduction in salary, or non -probationary demotion to the City Manager or duly authorized designee. Any request for an appeal to the City Manager shall be submitted in writing to the Human Resources Department within ten (10) business days of the Department Head’s decision. Failure to do so shall render the discipline final and constitute a waiver of any further administrative or judicial appeals. The appeal to the City Manager may be either in the form of a written appeal or an oral presentation. Termination appeals may be further processed in accordance with the provisions of Section 3 below.

SECTION 3. FORMAL PROCESS FOR TERMINATIONS, ADVISORY HEARING OFFICER . A non-probationary terminated employee may request a full evidentiary hearing within fifteen (15) City business days of the date of any notice of termination. Failure to request a hearing within the fifteen (15) 377

31 day period constitutes a waiver of the hearing. In lieu of a hearing, a terminated employee may submit a written response to the City Manager within the fifteen (15) day period. Requests for extensions to file a written response must be made within the fifteen (15) day period, and may be granted at the sole non - grievable discretion of the City Manager or duly authorized designee. If a hearing is requested to challenge the imposition of termination, a full evidentiary hearing shall be held by a Hearing Of ficer who shall render an advisory decision to the City Manager.

If the parties cannot agree on the identity of the Hearing Officer, the parties shall procure from the State Mediation and Conciliation Service a list of seven (7) qualified Hearing Officers. Each party shall alternately strike one (1) name from the list until only one (1) person remains, who shall be the Hearing Officer. The determination as to which party strikes first shall be made on a random basis.

A. Fees for retaining the Hearing Officer and other costs related to conducting the hearing, for example employing a court reporter, shall be shared equally by the City and the employee. The City and the employee shall each be responsible for securing and paying for their respective representation at the hearing, if any.

B. The Hearing Officer shall determine whether good cause exists for the imposition of the termination and, if not, the appropriate degree of discipline. The advisory decision of the Hearing Officer is remitted to the City Manager for final disposition.

C. The City Manager, or duly authorized designee, shall render a final decision on the Hearing Officer's comments and recommendation, in writing, and return them to the employee within ten (10) business days after receiving the Hearing Officer's advisory findings.

D. After this procedure is exhausted, the employee and the City shall have all rights and remedies to pursue said appeal under the law.

ARTICLE XXVI

NO STRIKE-NO LOCKOUT

SECTION 1 . PROHIBITED ASSOCIATION CONDUCT. The Association , its officers, agents, representatives and/or members agree that during the term of this MOU, they will not cause or condone any strike, walkout, slowdown, sick -out, or any other job action by withholding or refusing to perform services.

SECTION 2. PROHIBITED CITY CONDUCT. The City agrees that it shall not lock out its employees during the term of this MOU. The term "lockout" is hereby defined so as not to include the discharge, suspension, termination, layoff, failure to recall, or failure to return to work of employees of the City in the exercise of its rights as set forth in any of the provisions of this MOU or applicable ordinance or law.

SECTION 3. Any employee who participates in any conduct prohibited in Section 1 above may be subject to termination by the City.

378

32 SECTION 4. In addition to any other lawful remedies or disciplinary actions available to the City, if the Association fails, in good faith, to perform all respon sibilities listed in Section 5 below, the Association Responsibility, the City may suspend any and all of the rights, privileges, accorded to the Association under the Employee Relations Resolution in this MOU , including, but not limited to, suspension of recognition of the Association, grievance procedure, right of access, the use of the City's bulletin boards, and facilities.

SECTION 5. ASSOCIATION RESPONSIBILITY.

A. In the event that the Association, its officers, agents, representatives, or members engage in any of the conduct prohibited in Section 1 above, the Association or its duly authorized designees shall immediately instruct any persons engaging in such conduct that their conduct is in violation of this MOU and they should immediately cease engaging in conduct prohibited in Section 1 above, and return to work.

B. If the Association performs all of the responsi bilities set forth in paragraph A above, its officers, agents, and representatives shall not be liable for damages for prohibited conduct performed by employees who are covered by this MOU in violation of Section 1 above.

ARTICLE XXVII

ASSOCIATION RELEASE TIME

Upon request and with prior approval by the City, employees elected to the Association Board will be granted release time to perform Association functions. All Association release time must be fully documented on employee timesheets in a manner specified by the City.

ARTICLE XXVIII

LAYOFF PROCEDURE

When a layoff or reduction in force is necessary, the layoff procedures set forth in Resolution No. 8177 , as incorporated below, shall be used as the established layoff policy and procedure.

SECTION 1. PURPOSE. The purpose of this policy is to establish and communicate the City's procedures when a layoff or reduction in force is necessary.

SECTION 2. SCOPE. All Association employees are subject to reduction in force at the direction of the City Manager or duly authorized designee.

SECTION 3. POLICY. The City retains the right to abolish any position, reduce the workforce and layoff employees when it becomes necessary due to economic conditions, organizational changes, lack of work, or because the necessity for a position no longer exists. The City's layoff policy provides the following criteria to be followed during a reduction in force.

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33 SECTION 4. PROCEDURE.

A. Order of Reductions in Force (Layoff and Demotion). Within a department and by classification, the order of layoff or demotion shall be as follows:

1) Temporary employees (19 hours or less);

2) Initial probationary employees;

3) Regular part-time employees (20 or more hours, but less than 40 hours);

4) Regular full-time employees (40 hours)

For purposes of this procedure, the Water Division will be considered a department.

B. Layoffs.

1) Layoffs shall be based on City-wide seniority, except, negative performance during the past three ( 3) years will be considered to determine the order of layoff. Negative performance and disciplinary actions will include the following:

a) Denial of merit increases;
b) Suspension without pay;
c) Extensions of probationary periods;
d) Disciplinary demotions to lower level positions;
e) Disciplinary reductions in pay;
f) Performance evaluations containing significant, negative written comments indicating improvement needed and warning of further consequences to follow if improvement fails to occur.

A single negative disciplinary action as described above will not reduce the employee's seniority. However, each additional disciplinary action during the three (3) year period will reduce the employee's seniority by two (2) years for each additional occurrence, for a total possible reduction of six (6) years.

2) The order of layoff shall be established by the Human Resources Director , including seniority and results of review of performance evaluations and prior disciplinary actions.

3) The order of layoff will be from the least senior employee as determined by the procedure above.

4) Prior to the establishment of the final order of layoff, the Human Resources Director shall furnish affected employees a copy of the "Proposed Order of Layoff." Notice will be hand delivered to employees whenever possible , though alternative forms of notice may be utilized.

5) If the employee wishes to contest the application of the criteria set forth in this policy to their position on the list, the employee may appeal with any supporting materials to the 380

34 Human Resources Director . This request should be directed to the Human Resources Director within seven (7) calendar days following the establishment and distribution of a "Proposed Order of Layoff" list. The employee will be allowed representation during the appeal process, so long as it does not cause undue delay.

6) After meeting with all employees wishing to be heard with respect to their position on the layoff list, the Human Resources Director or a duly authorized designee shall establish the "Final Order of Layoff" list. The decision of the Human Resources Director shall be final and not subject to the grievance process or further appeal.

C. Written Notice . Employees to be laid off shall be provided written notice at least seven (7) calendar days in advance of the layoff date. Notice will be hand delivered to the employee whenever possible. If personal delivery is not possible, the notice will be sent by certified mail to the employee’s last known residential address.

D. Transfer or Demotion in Lieu of Layoff.

1) Whenever employees are to be laid off, they may transfer or demote to another vacant position in their own department or other departments providing that:

a) The positions are at the same or lower level;
b) Positions are authorized, budgeted, and the City intends to fill the vacancies; c) The employee meets the qualifications of the ne w position as determined by the Human Resources Director.

2) Whenever employees are to be laid off, they may demote to lower level, filled positions within their department providing they:

a) Formerly held or supervised the lower-level position within the City of Orange and within the classification series;
b) Employee meets or can reasonably meet qualifications for the new position as determined by the Human Resources Director;
c) Possesses greater seniority to displace a lower level worker; d) Requests in writing a demotion to the previously held or supervised position within seven (7) calendar days of receiving the notice of layoff or voluntary demotion. A voluntary demotion shall not reflect as a negative action in the employee's personnel file.

E. Re-employment Lists.

1) Regular employees in good standing who are laid off or demoted shall have their name placed on a departmental re -employment list for the last classification previously held.

Names shall be placed on the list in inverse order of seniority (last released - first rehired).

Vacancies the department desires to fill will be offered first to eligibles on the departmental re-employment list.

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35 2) Other hiring departments who have vacancies the City desires to fill will give priority consideration to those employees whose names appear on the re-employment list. If these employees are not selected for re -hire, the reason for non -selection must be a pproved by the Human Resources Director.

3) Names of qualified individuals shall remain on re -employment lists for a period not to exceed two (2) years from the date of layoff. Individuals who qualify for re -hire but do not respond to written notification to the last known address on file within fourteen calendar days or who refuse two (2) job offers shall have their names removed from the re- employment list. It is the employee’s responsibility to provide the Human Resources Department with a current mailing address. Once re -hired, employee names are removed from all re-employment lists.

SECTION 5. NON-DISCRIMINATION IN REDUCTION IN FORCE . Layoffs and demotions, which result from a reduction in force, shall be made without regard to an employee's actual or perceived race, color, national origin, religion, sex, gender identity, physical or mental disability, medical condition (cancer-related or genetic information), ancestry, marital status, age, sexual orientation, citizenship, pregnancy, childbirth or related medical condition, status as a covered veteran, or service in the uniformed services (as defined by the Uniformed Services Employment and Re-employment Rights Act of 1994) or any other lawfully protected class.

ARTICLE XXIX

SCOPE AND APPLICATION OF MEMORANDUM OF UNDERSTANDING

It is the intent of the parties hereto that the provisions of th is MOU shall supersede all prior agreements including Side Letter Agreements, Letters of Understanding, Memoranda of Understanding, contrary salary and/or personnel resolutions , Administrative Codes, past practices, or provisions of the City, oral and written, expressed or implied, between the parties, and shall govern the entire relationship and shall be the sole source of any and all rights which may be asserted her eunder. This MOU is not intended to conflict with Federal or State law.

ARTICLE XXX

WAIVER OF BARGAINING DURING TERM

OF MEMORANDUM OF UNDERSTANDING

During the term of this MOU, the parties mutually agree that they will not seek to change, negotiate, or bargain with regard to wages, hours, benefits, and terms and conditions of employment, whether or not covered by this MOU or in the negotiations leading thereto, and irrespective of whether or not such matters were discussed or were even within the contemplation of the parties hereto during the negotiations leading to this MOU. Regardless of the waiver contained in this Article, the parties may, however , by mutual agreement, in writing, agree to meet and confer about any matter during the term of this MOU.

REST OF PAGE LEFT BLANK INTENTIONALLY.
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36 ARTICLE XXXI

EMERGENCY WAIVER PROVISION

In the event of circumstances beyond the control of the City, such as force majeure, fire, flood, wind, insurrection, civil disorder, national emergency, or similar circumstances, provisions of this MOU or the Personnel Rules or Resolutions of the City, which restrict the City's ability to respond to these emergencies, shall be suspended for the duration of such emergency. After the emergency is declared over, this MOU will be reinstated immediately. The Association shall have the right to meet and confer with the City regarding the impact on employees of the suspension of the provisions in the MOU during the course of the emergency.

ARTICLE XXXII

MEMORANDUM OF UNDERSTANDING TERMS SEVERABLE

Should any provision of this MOU be found to be inoperative, void, or invalid by a court of competent jurisdiction, or by enactment of Federal or State legislation, all other provisions of this MOU shall remain in full force and effect for the duration of this MOU.

ARTICLE XXXIII

TERM OF MEMORANDUM OF UNDERSTANDING,

NO LAYOFF OR FURLOUGH CLAUSE, & PARITY AGREEMENT

SECTION 1. TERM. The term of this MOU shall commence on July 1, 2025 and shall continue in full force and effect until June 30, 2026.

SECTION 2. NO LAYOFF OR FURLOUGH . During the term of this agreement, the City shall not impose furloughs, reductions in work hours, or layoffs on any OMEA represented employees. This provision shall sunset on June 30, 2026 and will no longer be applicable after this date.

SECTION 3. PARITY AGREEMENT - SALARY. During the term of this agreement, the City agrees that if the Orange Management Association (OMA), the International Brotherhood of Electrical Workers – Maintenance and Crafts, or the International Brotherhood of Electrical Workers – Water receive additional across the board base salary increases the City shall provide said adjustments to OMEA as applicable.

SECTION 4. PARITY AGREEMENT - SECTION 125 FLEXIBLE BENEFITS PLAN (MEDICAL) .

During the term of the agreement, should both parties agree that if IBEW – Maintenance and Crafts and/or IBEW – Water receive a comprehensive value greater than what is afforded to OMEA based on a comprehensive tentative agreement and/or executed LOU /MOU, the City shall provide additional adjustments to OMEA as applicable.

REST OF PAGE LEFT BLANK INTENTIONALLY.
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37 ARTICLE XXXIV

RATIFICATION AND EXECUTION

The City and Association acknowledge that this MOU shall not be in full force and effect until ratified by the Association and adopted by the City Council of the City of Orange. Subject to the foregoing, this MOU is hereby executed by the authorized representatives of the City and the Association and entered into this 12th day of August, 2025.

CITY OF ORANGE ORANGE MUNICIPAL EMPLOYEES’

ASSOCIATION

Dated: _______________________________________ Dated:

By: ___________________________________ By: __________________________________ Monica Espinoza, Human Resources Director Kerensa Schupmann, OCEA Representative

By: ___________________________________ By: __________________________________ Trang Nguyen, Finance Director Joe Avila III, President

By: ___________________________________ By: __________________________________ Cody Kleen, Assistant Human Resources Director John Ferry, Vice President

By: ____________________________________ By: __________________________________ Shelby Alley, Human Resources Analyst II Holly Gardner, Treasurer

By: ___________________________________ By: _________________________________________ Eric Figueroa, Human Resources Analyst I Martin Varona, Secretary

By: _________________________________________
Eric Perez, Director at Large

APPROVED AS TO FORM:

By: __________________________________
Wayne W. Winthers, Interim City Attorney, City of Orange

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38 APPENDIX A

ORANGE MUNICIPAL EMPLOYEES’ ASSOCIATION

MONTHLY SALARY RANGES

EFFECTIVE DECEMBER 31, 2023

5.5% Across-the-Board Salary Increase

CLASSIFICATION TITLE RANGE STEP
A
STEP
B
STEP
C
STEP
D
STEP
E
STEP
F
Accountant 573 6214 6530 6864 7214 7582 7969
Administrative Assistant 521 4794 5039 5296 5566 5850 6148 Administrative Specialist 519 4747 4989 5243 5510 5792 6087 Assistant Engineer 602 7181 7548 7931 8336 8762 9208
Assistant Planner 560 5824 6121 6433 6761 7106 7468
Associate Civil Engineer 625 8054 8465 8895 9350 9828 10328 Associate Engineer 625 8054 8465 8895 9350 9828 10328
Associate Planner 595 6935 7289 7659 8050 8461 8892
Building Inspector 561 5853 6152 6465 6795 7142 7505
Business License Inspector 549 5513 5795 6089 6401 6727 7070 Buyer 557 5737 6030 6338 6661 7000 7357
Code Compliance Officer 555 5680 5970 6274 6595 6930 7284 Combination Building Inspector 571 6152 6466 6795 7143 7507 7889 Construction Inspector I 542 5324 5595 5881 6181 6496 6827 Construction Inspector II 562 5882 6182 6498 6829 7177 7543 Contract Administrator 602 7181 7548 7931 8336 8762 9208 Engineering Technician I 531 5040 5297 5567 5851 6149 6463 Engineering Technician II 551 5569 5852 6151 6464 6794 7141 Environmental Compliance Specialist 555 5680 5970 6274 6595 6930 7284 Environmental Scientist 625 8054 8465 8895 9350 9828 10328 Finance Assistant 534 5116 5376 5651 5939 6242 6560
Finance Clerk 499 4296 4515 4746 4988 5242 5509
GIS Analyst 625 8054 8465 8895 9350 9828 10328
Housing Specialist 555 5680 5970 6274 6595 6930 7284
Human Resources Technician 529 4990 5244 5512 5793 6088 6399 Lead Business License Inspector 559 5795 6090 6401 6727 7070 7431 Lead Finance Clerk 559 5795 6090 6401 6727 7070 7431
Librarian I 537 5193 5458 5736 6028 6336 6659
Librarian II 557 5737 6030 6338 6661 7000 7357
Librarian III 577 6339 6663 7002 7359 7735 8129
Library Assistant 497 4254 4470 4698 4938 5190 5455
Library Clerk 451 3382 3554 3735 3926 4126 4336
Library Literacy Coordinator 537 5193 5458 5736 6028 6336 6659 385

39 APPENDIX A (CONTINUED)

ORANGE MUNICIPAL EMPLOYEES’ ASSOCIATION

MONTHLY SALARY RANGES

CLASSIFICATION TITLE RANGE STEP
A
STEP
B
STEP
C
STEP
D
STEP
E
STEP
F
Library Page 422 2926 3076 3232 3397 3571 3752
Library Support Services Assistant 497 4254 4470 4698 4938 5190 5455 Library Technology Assistant 497 4254 4470 4698 4938 5190 5455 Library Technology Coordinator 557 5737 6030 6338 6661 7000 7357 Library Technology Specialist 537 5193 5458 5736 6028 6336 6659 Library Volunteer Coordinator 521 4794 5039 5296 5566 5850 6148 Office Assistant 471 3736 3927 4127 4338 4559 4791
Payroll Technician 559 5795 6090 6401 6727 7070 7431
Permit Technician 521 4794 5039 5296 5566 5850 6148
Plan Check Engineer 602 7181 7548 7931 8336 8762 9208
Planning Aide 530 5015 5270 5540 5822 6118 6431
Project Engineer 612 7548 7934 8337 8763 9210 9679
Recreation Services Coordinator 538 5219 5485 5765 6059 6368 6692 Senior Code Compliance Officer 575 6276 6596 6933 7286 7658 8049 Senior Combo. Building Inspector 591 6797 7145 7508 7891 8294 8717 Senior Finance Clerk 519 4747 4989 5243 5510 5792 6087
Senior Library Clerk 481 3927 4128 4338 4559 4792 5036
Senior Office Assistant 491 4129 4339 4560 4793 5037 5293 Senior Permit Technician 541 5297 5568 5851 6150 6463 6793 Senior Traffic Signal Technician 591 6797 7145 7508 7891 8294 8717 Stock Clerk 480 3907 4107 4316 4537 4768 5011
Traffic Management Center Tech 591 6797 7145 7508 7891 8294 8717 Traffic Signal Technician I 531 5040 5297 5567 5851 6149 6463 Traffic Signal Technician II 551 5569 5852 6151 6464 6794 7141 Transportation Analyst 625 8054 8465 8895 9350 9828 10328 Warehouse/Inventory Specialist 538 5219 5485 5765 6059 6368 6692

386

40 APPENDIX A (CONTINUED)

ORANGE MUNICIPAL EMPLOYEES’ ASSOCIATION

MONTHLY SALARY RANGES

EFFECTIVE JUNE 29, 2025

2.0% Across the Board Salary Increase

CLASSIFICATION TITLE RANGE STEP
A
STEP
B
STEP
C
STEP
D
STEP
E
STEP
F
Accountant 577 6339 6663 7002 7359 7735 8129
Administrative Assistant 525 4891 5141 5403 5678 5968 6272 Administrative Specialist 523 4842 5089 5349 5622 5908 6210 Assistant Engineer 606 7325 7700 8091 8504 8938 9394
Assistant Planner 564 5941 6244 6563 6897 7249 7619
Associate Civil Engineer 629 8216 8636 9074 9538 10025 10535 Associate Engineer 629 8216 8636 9074 9538 10025 10535
Associate Planner 599 7074 7436 7814 8213 8632 9071
Building Inspector 565 5971 6275 6596 6931 7285 7657
Business License Inspector 553 5624 5911 6212 6529 6862 7212 Buyer 561 5853 6152 6465 6795 7142 7505
Code Compliance Officer 559 5795 6090 6401 6727 7070 7431 Combination Building Inspector 575 6276 6596 6933 7286 7658 8049 Construction Inspector I 546 5431 5708 5999 6305 6627 6965 Construction Inspector II 566 6001 6307 6629 6966 7322 7695 Contract Administrator 606 7325 7700 8091 8504 8938 9394 Engineering Technician I 535 5141 5403 5679 5969 6273 6593 Engineering Technician II 555 5680 5970 6274 6595 6930 7284 Environmental Compliance
Specialist 559 5795 6090 6401 6727 7070 7431
Environmental Scientist 629 8216 8636 9074 9538 10025 10535 Finance Assistant 538 5219 5485 5765 6059 6368 6692
Finance Clerk 503 4383 4606 4841 5088 5348 5620
GIS Analyst 629 8216 8636 9074 9538 10025 10535
Housing Specialist 559 5795 6090 6401 6727 7070 7431
Human Resources Technician 533 5090 5350 5623 5909 6211 6527 Lead Business License Inspector 563 5911 6213 6530 6863 7213 7581 Lead Finance Clerk 563 5911 6213 6530 6863 7213 7581
Librarian I 541 5297 5568 5851 6150 6463 6793
Librarian II 561 5853 6152 6465 6795 7142 7505
Librarian III 581 6467 6796 7144 7508 7890 8293

387

41 APPENDIX A (CONTINUED)

ORANGE MUNICIPAL EMPLOYEES’ ASSOCIATION

MONTHLY SALARY RANGES

CLASSIFICATION TITLE RANGE STEP
A
STEP
B
STEP
C
STEP
D
STEP
E
STEP
F
Library Assistant 501 4339 4561 4793 5038 5295 5565
Library Clerk 455 3450 3626 3810 4005 4209 4423
Library Literacy Coordinator 541 5297 5568 5851 6150 6463 6793 Library Page 426 2985 3138 3297 3466 3642 3828
Library Support Services Assistant 501 4339 4561 4793 5038 5295 5565 Library Technology Assistant 501 4339 4561 4793 5038 5295 5565 Library Technology Coordinator 561 5853 6152 6465 6795 7142 7505 Library Technology Specialist 541 5297 5568 5851 6150 6463 6793 Library Volunteer Coordinator 525 4891 5141 5403 5678 5968 6272 Office Assistant 475 3812 4006 4210 4425 4650 4887
Payroll Technician 563 5911 6213 6530 6863 7213 7581
Permit Technician 525 4891 5141 5403 5678 5968 6272
Plan Check Engineer 606 7325 7700 8091 8504 8938 9394
Planning Technician* 534 5116 5376 5651 5939 6242 6560
Project Engineer 616 7700 8094 8505 8940 9396 9874
Recreation Services Coordinator 542 5324 5595 5881 6181 6496 6827 Senior Code Compliance Officer 579 6403 6729 7073 7433 7812 8211 Senior Combo. Building Inspector 595 6935 7289 7659 8050 8461 8892 Senior Finance Clerk 523 4842 5089 5349 5622 5908 6210
Senior Library Clerk 485 4006 4211 4426 4651 4888 5138
Senior Office Assistant 495 4212 4426 4652 4890 5138 5401 Senior Permit Technician 545 5404 5680 5969 6274 6594 6930 Senior Traffic Signal Technician 595 6935 7289 7659 8050 8461 8892 Stock Clerk 484 3987 4190 4404 4628 4864 5112
Traffic Management Center Tech 595 6935 7289 7659 8050 8461 8892 Traffic Signal Technician I 535 5141 5403 5679 5969 6273 6593 Traffic Signal Technician II 555 5680 5970 6274 6595 6930 7284 Transportation Analyst 629 8216 8636 9074 9538 10025 10535 Warehouse/Inventory Specialist 542 5324 5595 5881 6181 6496 6827 *C
lassification of Planning Aide retitled to Planning Technician 388
Agenda Item
City Council
Item #: 7.1. 8/12/2025 File #: 25-0421

1. SUBJECT
Appointment to the Orange Public Library Board of Trustees.

2. SUMMARY
Due to the expired term of Katie Montgomery, a scheduled vacancy exists on the Orange Public Library Board of Trustees. A Notice of Vacancy was posted in accordance with Government Code Section 54974.

3. RECOMMENDED ACTION
Confirm Mayor Slater’srecommendation to appoint Sharon Zimmerman to the Orange Public Library Board of Trustees for a three-year term ending on June 30, 2028.

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Agenda Item
City Council
Item #: 7.1. 8/12/2025 File #: 25-0421

1. SUBJECT
Appointment to the Orange Public Library Board of Trustees.

3. RECOMMENDED ACTION
Confirm Mayor Slater’srecommendation to appoint Sharon Zimmerman to the Orange Public Library Board of Trustees for a three-year term ending on June 30, 2028.

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Agenda Item
City Council
Item #: 9.1. 8/12/2025 File #: 25-0426
TO: Honorable Mayor and Members of the City Council
FROM: Jarad Hildenbrand, City Manager

1. SUBJECT
Amended and Restated Agreement with Orange International Street Fair, Inc. to produce both Treats in the Streets and the annual Tree Lighting Ceremony.

2. SUMMARY
On April 8, 2025, the Orange City Council approved a production agreement authorizing Orange International Street Fair, Inc. to produce the Annual Treats in the Streets event. On May 22, 2025, the City received a letter of intent from Orange International Street Fair, Inc. to produce the annual Tree Lighting Ceremony. The proposed amended and restated agreement changes the production agreement to incorporate both the annal Treats in the Streets event and Tree Lighting Ceremony.

3. RECOMMENDED ACTION
Approve the amended and restated agreement with Orange International Street Fair, Inc. to produce the annual Treats in the Streets event and the annual Tree Lighting Ceremony; and authorize the Mayor and City Clerk to execute on behalf of the City.

4. FISCAL IMPACT
None.

5. STRATEGIC PLAN GOALS
Goal 3: Enhance Public Communication Strategy and Quality of Life.

6. DISCUSSION AND BACKGROUND
For several decades, the City of Orange (City) organized and funded the annual Tree Lighting Ceremony (Tree Lighting) in collaboration with the Orange Community Master Chorale (OCMC) along with several non-profit organizations and churches in the Old Towne Orange Plaza (Plaza). As one of the City’shighly anticipated events, Tree Lighting attracts thousands of Orange residents and visitors alike to the Plaza.

In considering the City’sstructural budget deficit, the City Council voted to cancel all City-sponsored events on June 25, 2024. However, the City Council stated that the cancellation could be rescinded if an outside group was willing to fully sponsor an event. Although OCMC funded the 2024 Tree Lighting, the City did not receive any other commitments to produce future Tree Lighting events.

On May 22, 2025, the City received a letter of intent (LoI) from Orange International Street Fair, Inc. (OISF) expressing interest in producing the event. Staff worked with OISF to incorporate Tree Lighting into the Treats in the Streets production agreement. Some of the more significant terms of City of Orange Printed on 8/7/2025Page 1 of 2
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Item #: 9.1. 8/12/2025 File #: 25-0426
the proposed amended and restated agreement as it pertains to Tree Lighting include:
· That OISF will reimburse the City for actual costs.
· That the Plaza will close to vehicular traffic at 2:00 a.m. · That vendor sales and activities related to OISF’sChristmas Market portion of the event will begin at 10:00 a.m.
· That the traditional Tree Lighting portion will begin at 5:15 p.m.; and · The event will conclude at 7:00 p.m. with the Plaza back open to vehicular traffic no later than 12:00 a.m.

While OISF intends to modify the traditional Tree Lighting with the inclusion of a Christmas Market, OISF recognizes Tree Lighting is a cherished community event, and intends to preserve many of the core features valued by the Orange community.

7. ATTACHMENTS
· Amended and Restated Agreement with Orange International Street Fair, Inc. · Letter of Intent
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Agenda Item
City Council
Item #: 9.1. 8/12/2025 File #: 25-0426
TO: Honorable Mayor and Members of the City Council
FROM: Jarad Hildenbrand, City Manager

1. SUBJECT
Amended and Restated Agreement with Orange International Street Fair, Inc. to produce both Treats in the Streets and the annual Tree Lighting Ceremony.

4. FISCAL IMPACT
None.

5. STRATEGIC PLAN GOALS
Goal 3: Enhance Public Communication Strategy and Quality of Life.

On May 22, 2025, the City received a letter of intent (LoI) from Orange International Street Fair, Inc. (OISF) expressing interest in producing the event. Staff worked with OISF to incorporate Tree Lighting into the Treats in the Streets production agreement. Some of the more significant terms of City of Orange Printed on 8/7/2025Page 1 of 2
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Item #: 9.1. 8/12/2025 File #: 25-0426
the proposed amended and restated agreement as it pertains to Tree Lighting include:
· That OISF will reimburse the City for actual costs.
· That the Plaza will close to vehicular traffic at 2:00 a.m. · That vendor sales and activities related to OISF’sChristmas Market portion of the event will begin at 10:00 a.m.
· That the traditional Tree Lighting portion will begin at 5:15 p.m.; and · The event will conclude at 7:00 p.m. with the Plaza back open to vehicular traffic no later than 12:00 a.m.

FOR PRODUCTION OF TREATS IN THE STREETS

AND THE ANNUAL CHRISTMAS TREE LIGHTING CEREMONY

This AMENDED AND REST ATED AGREEMENT FOR PRODUCTION OF

TREATS IN THE STREETS AND THE ANNUAL CHRISTMAS TREE LIGHTING CEREMONY (“Agreement”) is made at Orange, California, on this _____ day of _________________, 202 5 (“Effective Date”) by and between the CITY OF ORANGE, a municipal corporation (“City”), and ORANGE INTERNATIONAL STREET FAIR, INC. , a California non-profit public benefit corporation, also known as OISF (“OISF”).

1. Term and Termination of Agreement.

A. This Agreement shall commence upon execution and shall terminate December 31, 2028, unless amended or sooner terminated as provided herein.

B. City, acting through its City Manager or designee, reserves the right to terminate this Agreement for any reason by providing a written notice of intent to terminate to OISF no fewer than 120 days prior to the commencement of the next Treats in the Streets and Annual Christmas Tree Lighting Ceremony. City shall not be liable for any claim of damages or lost profits relating to any such termination.

2. Location.

Treats in the Streets and the Annual Christmas Tree Lighting Ceremony shall take place on those public streets and rights -of-way in the City generally described as the area of Chapman Avenue from the center line of Grand Street to the center line of Lemon Street; and Glassell Street from the center line of Almond Avenue to the center line of Maple Avenue, as more particularly identified in the map attached hereto and incorporated herein as Exhibit “A.”

3. Date and Times.

A. The Treats in the Streets shall take place on the following dates and times:

1) October 30, 2025 beginning at 4:00 p.m. – 7:00 p.m.

2) October 29, 2026 beginning at 4:00 p.m. – 7:00 p.m.

3) October 28, 2027 beginning at 4:00 p.m. - 7:00 p.m.

4) October 26, 2028 beginning at 4:00 p.m. - 7:00 p.m.

B. The Annual Christmas Tree Lighting Ceremony shall take place on the following dates and times:

1) December 7, 2025 beginning at 10:00 a.m. – 7:00 p.m. 395
2 2) December 6, 2026 beginning at 10:00 a.m. – 7:00 p.m.

3) December 5, 2027 beginning at 10:00 a.m. - 7:00 p.m.

4) December 3, 2028 beginning at 10:00 a.m. - 7:00 p.m.

4. OISF Obligations.

A. Production of Treats in the Streets and the Annual Christmas Tree Lighting Ceremony (hereinafter collectively referred to as “Annual Holiday Events”)

1) OISF shall produce the Annual Holiday Events on the days and times stated in Section 3.

2) The “production of Annual Holiday Events ” mean s all aspects of the planning, coordination, and execution of said Annual Holiday Events including, but not limited to:
reviewing and approving applications for participants; preparing and distributing advertising; obtaining all lic enses, permits (e.g., Orange County Health Care Agency) and other applicable governmental approvals; obtaining all insurance set forth in Section 7; and developing a budget and fee schedule.

3) OISF shall work with designated City representatives for business involving the Annual Holiday Events to ensure compliance with this Agreement.

B. Staging Layout.

1) The proposed staging layout map is contained in Exhibit “B.” Each year, no fewer than sixty (60) days prior to the Annual Holiday Events , OISF shall submit a detailed staging layout map showing the physical layout of the entertainment, food, and commercial booths, for approval by the Police Department, Fire Department, and Public Works Department.

2) All fire lanes, fire breaks, crosswalks, streets and alleyways shown on the approved plan shall remain free and clear of all objects, materials, vehicles, and other obstructions during set up, during the course of the event, and at break down of the Annual Holiday Events.

3) OISF shall not block or obstruct public sidewalks with tables, chairs, canopies or any other equipment preventing pedestrian circulation.

4) To the extent it is feasible, OISF shall not block pedestrian or delivery access to a merchant that is within or immediately adjacent to the event area.

5) The use of Plaza Park during this event will be reviewed on an annual basis.

At the discretion of the Community and Library Services Director, the historic fountain shall be enclosed and protected by fencing for the duration of the Annual Holiday Events. The cost of such fence rental or other means to secure the historic fountain shall be the sole responsibility of OISF.

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3 C. Site Inspection . No fewer than fifteen (15) days prior to the event, authorized representatives from City and OISF shall walk the footprint of the Annual Holiday Events to ensure safety standards.

D. Parking Lots. Excluding portions of the public parking lot on the west side of South Orange Street and u nless otherwise approved by the City Council, OISF agrees to leave public parking lots open for use by participants and the public during the Annual Holiday Events.

E. Sanitation.

1) Unless otherwise stated herein, OISF shall comply with all provisions of the Orange Municipal Code and all applicable state and federal mandates as they relate to all storm water issues, and as directed by City.

F. Entertainment. OISF shall furnish a complete entertainment schedule to the Police Department liaison a minimum of two (2) weeks prior to the Annual Holiday Events.

G. Code of Conduct . OISF shall comply with and enforce the following guidelines related to it s employees and volunteers, the general public, and all vendors within the Annual Holiday Events footprint:

1) With the exception of ADA -recognized service animals, animals are not permitted.

2) Skateboards, roller skates, scooters, bikes, or any motorized or self - propelled device, other than wheelchairs, mobile scooters, and participant vehicles, for the purpose of personal motion are not permitted, unless pre-approved by City.

3) In keeping with the family -friendly nature of the event, attendees may not wear grotesque masks or costumes depicting violence or injury, including the use of simulated guns, knives, swords, hammers, chainsaws, clubs, etc. to the extent the item could be mistaken for a real weapon or instrument of violence.

4) Footwear and a shirt, or similar form of covering as otherwise approved by the City, must be worn at all times by participants and attendees.

5) Signs for Treats in the Streets must be posted with the information in subsections 1), 2) and 3) as listed above. Signs for the Annual Tree Lighting Ceremony must be posted with the information in subsections 1) and 2) as listed above

6) The Police Department has the right to approve or deny performers and both Police and Fire Departments have the right to stop live entertainment at their discretion based on conditions that may cause or create a hazardous situation to the public.

H. Equipment, Supplies, Costs.

1) OISF shall furnish all equipment and supplies reasonably necessary to carry out the purpose of this Agreement, except as otherwise provided herein and shall pay for all costs and expenses incurred for production of the Annual Holiday Events. 397
4 2) OISF shall reimburse City for all costs and expenses incurred by City in providing materials and services for the Annual Holiday Events, including public safety and other personnel.

a. The number of public safety personnel assigned is at the discretion of the Police Department and Fire Department. The City will notify OISF in writing when public safety personnel levels will exceed those utilized during the previous Annual Holiday Events.

b. Materials and services may include costs incurred by City related to damage and cleanup of public and private property directly related to the Annual Holiday Event activities within the Annual Holiday Events footprint as depicted in Exhibit “A.”

c. Reimbursement for said materials and services shall be due and payable within thirty (30) days of receipt of an itemized statement from City.

d. OISF will only be responsible for the actual costs incurred by City related to the Annual Holiday Events.

I. Maintenance and Inspection of Records . OISF shall maintain all records relating to this Agreement and the production of the Annual Holiday Events for a minimum of three (3) years following the expiration or termination of the Agreement. All such records shall be available for inspection or review by an authorized representative of City within ten (10) days of written notice to OISF.

J. Communications and Contacts.

1) OISF shall designate an individual to serve as a public contact for any and all inquiries, including but not limited to complaints related to the production of the Annual Holiday Events, and shall provide a list of contacts and phone numbers to City no fewer than thirty (30) days prior to commencement of the Annual Holiday Events.

2) OISF will make reasonable efforts to engage with and educate downtown businesses regarding the Annual Holiday Events, footprint, hours, and any other Annual Holiday Event logistics that may interfere with local business operations.

5. City Obligations.

A. City agrees that OISF shall have the sole and exclusive right to produce the Annual Holiday Events.

B. City agrees to prepare the Annual Holiday Events footprint to a mutually acceptable condition at the City’s expense, prior to commencement of the Annual Holiday Events.

C. The City Manager’s Office shall designate a direct liaison with OISF as it pertains to the production, planning , and follow-up of the Annual Holiday Events . The City Manager’s liaison shall serve as a public contact for any and all inquiries, including but not limited to 398
5 complaints related to the production of the Annual Holiday Events. No fewer than thirty (30) days prior to the Annual Holiday Events, the City Manager’s liaison shall provide OISF with a list of contacts and phone numbers for each of the following departments: Public Works, Police, Fire, and City Manager’s Office.

D. City shall require any vendors or merchants within the Annual Holiday Events footprint not otherwise participating in the Annual Holiday Events through the OISF approval process, to apply for and obtain a Special Event Permit from City. All such Special Event Permits must be submitted for review no later than thirty (30) days prior to the Annual Holiday Events.

E. City will encourage local businesses an d neighbors to report all clean up locations to City within forty-eight (48) hours of the closure of the Annual Holiday Events. City will provide an itemized bill, including photos of the areas not cleaned, to OISF accordingly.

F. City shall provide OISF with a detailed break-down of the actual costs incurred by City for labor, material, and equipment related to the Annual Holiday Events within 90 days.

G. City shall reopen all intersections in the Annual Holiday Events area to through traffic no later than 12:00 a.m.

6. Reserved.

7. Insurance.

A. If applicable, OISF shall carry workers’ compensation insurance as required by law for the protection of its employees during the progress of the work . OISF acknowledges that it is an independent contractor and not entitled to any worker's compensation benefits under any City program.

B. OISF shall maintain the following minimum amount of comprehensive general liability insurance or commercial general liability insurance: the greater of (1) Two Million Dollars ($2,000,000) per occurrence with a Three Million Dollars ($3,000,000) aggregate; or (2) all the insurance coverage and/or limits carried by or available to OISF. Said insurance shall cover bodily injury, death and property damage and be written on an occurrence basis.

C. Any insurance proceeds in excess of or broader than the minimum required coverage and/or minimum required limits which are applicable to a given loss shall be available to City. No representation is made that the minimum insurance requirements of this Agreement are sufficient to cover the obligations of OISF under this Agreement.

D. Each policy of general liability shall provide that City, its officers, officials, agents, and employees are declared to be additional insureds under the terms of the policy, but only with respect to the event held by OISF under this Agreement. A policy endorsement to that effect shall be provided to City along with the certificate of insurance . In lieu of an endorsement, City will accept a copy of the policy(ies) which evidences that City is an additional insured as a contracting party. The minimum cove rage required by Subsection B, above, shall apply to City as an additional insured.
399
6 E. The insurance policies maintained by OISF shall be primary insurance and no insurance held or owned by City shall be called upon to cover any loss under the policy . OISF will determine its own needs in procurement of insurance to cover liabilities other than as stated above.

F. Before OISF performs any work or prepares or delivers any materials, it shall furnish certificates of insurance and endorsements, as required by City, evidencing the aforementioned minimum insurance coverages on forms acceptable to City, which shall provide that the insurance in force will not be canceled or allowed to lapse without at least ten (10) days’ prior written notice to City.

G. All insurance maintained by OISF shall be issued by companies admitted to conduct the pertinent line of insurance business in California.

H. OISF shall immediately notify City if any required insurance lapses or is otherwise modified and cease performance of this Agreement unless otherwise directed by City . In such a case, City may procure insurance or self -insure the risk and charge OISF for such costs and any and all damages resulting therefrom, by way of set-off from any sums owed OISF.

I. OISF agrees that in the event of loss due to any of the perils for which it has agreed to provide insurance, it shall look solely to its insurance for recovery. OISF hereby grants to City, on behalf of any insurer providing insurance to either OISF or City with respect to the services of OISF herein, a waiver of any right to subrogation which any such insurer may acquire against City by virtue of the payment of any loss under such insurance.

J. OISF shall include all OISF subcontractors, if any, and Annual Holiday Events vendors as additional insureds under its policies or shall require that said subcontractors and OISF vendors maintain their own insurance consistent with the requirements stated herein.

8. Indemnity.

A. To the fullest extent permitted by law, OISF agrees to indemnify, defend and hold City, its City Council and each member thereof, and the officers, officials, agents and employees of City (collectively the “Indemnitees”) entirely harmless from all liability arising out of:

1) Any and all claims under worker’s compensation acts and other employee benefit acts with respect to OISF’s employees or subcontractor’s employees arising out of OISF’s work under this Agreement; and

2) Any claim, loss, injury to or death of persons or damage to property caused by any act, neglect, default, or omission other than a professional act or omission of OISF, or person, firm or corporation employed by OISF, either directly or by independent contract, including all damages due to loss or theft sustained by any person, firm or corporation including the Indemnitees, or any of them, arising out of, or in any way connected with the work or services which are the subject of this Agreement, including in jury or damage either on or off City’s property; but not for any loss, injury, death or damage caused by the active negligence or willful 400
7 misconduct of City . OISF, at OISF’s own expense, cost and risk, shall indemnify any and all claims, actions, suits or other proceedings that may be brought or instituted against the Indemnitees on any such claim or liability covered by this Subsection, and shall pay or satisfy any judgment that may be rendered against the Indemnitees, or any of them, in any action, suit or other proceedings as a result of coverage under this Subsection.

B. Except for the Indemnitees, the indemnifications provided in this Agreement shall not be construed to extend any third party indemnification rights of any kind to any person or entity which is not a signatory to this Agreement.

C. The indemnities set forth in this section shall survive any closing, rescission, or termination of this Agreement, and shall continue to be binding and in full force and effect in perpetuity with respect to OISF and its successors.

9. Standard Provisions.

A. Licenses. OISF represents that it and any subcontractors it may engage possess any and all licenses which are required under state or federal law to perform the work contemplated by this Agreement and that OISF and subcontractors, if any, shall maintain all appr opriate licenses, including a City of Orange business license, at its cost, during the performance of this Agreement.

B. Independent Contractor. At all times during the term of this Agreement, OISF shall be an independent contractor and not an employee of City . City shall have the right to control OISF only insofar as the result of OISF’s services rendered pursuant to this Agreement. City shall not have the right to control the means by which OISF accomplishes services rendered pursuant to this Agreement . OISF shall, at its sole cost and expense, furnish all facilities, materials and equipment which may be required for furnishing services pursuant to this Agreement. OISF shall be solely responsible for, and shall indemnify, defend and save City harmless from al l matters relating to the payment of its subcontractors, agents and employees, including compliance with social security, withholding and all other wages, salaries, benefits, taxes, exactions, and regulations of any nature whatsoever . OISF acknowledges that OISF and any subcontractors, agents or employees employed by OISF shall not, under any circumstances, be considered employees of City, and that they shall not be entitled to any of the benefits or rights afforded employees of City, including, but not limited to, sick leave, vacation leave, holiday pay, Public Employees Retirement System benefits, or health, life, dental, long -term disability or workers' compensation insurance benefits.

C. OISF Not Agent . Except as City may specify in writing, OISF shall have no authority, express or implied, to act on behalf of City in any capacity whatsoever as an agent .

OISF shall have no authority, express or implied, to bind City to any obligation whatsoever.

D. Amendment. No amendment of this Agreement or its Exhibits shall be effective unless in writing, signed by OISF and City. City Manager is specifically authorized to execute amendments to this Agreement on behalf of City.

E. Assignment or Subcontracting. No assignment or subcontracting by OISF of any part of this Agreement shall be of any force or effect unless the assignment has had the prior written 401
8 approval of City. City may terminate this Agreement rather than accept any proposed assignment or subcontracting. Such assignment or subcontracting may be approved by the City Manager or designee.

F. Equal Opportunity and Non -Discrimination. During the performance of this Agreement, OISF agrees as follows:

1) OISF shall not discriminate against any employee , applicant for employment, vendor or participant because of race, color, religion, sex, national origin, mental or physical disability, or any other basis prohibited by applicable law . OISF shall ensure that such persons are treated without regard to their race, color, religion, sex, national origin, mental or physical disability, or any other basis prohibited by applicable law . OISF agrees to post in conspicuous places, available to such persons , a notice setti ng forth provisions of this non - discrimination clause.

2) OISF shall, in all solicitations and advertisements for employees placed by, or on behalf of OISF, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, national origin, mental or physical disability, or any other basis prohibited by applicable law.

3) OISF shall cause the foregoing paragraphs 1) and 2) to be inserted in all subcontracts for any work covered by this Agreement, provided that the foregoing provisions shall not apply to subcontracts for standard commercial supplies or raw materials.

G. Conflicts of Interest. OISF agrees that it shall not make, participate in the making, or in any way attempt to use its position as a contractor to influence any decision of City in which OISF knows or has reason to know that OISF, its officers, partners, or employees have a financial interest as defined in Section 87103 of the Government Code.

H. Compliance with all Laws/Immigration Laws.

1) OISF shall be knowledgeable of and comply with all local, state and federal laws which may apply to the performance of this Agreement.

2) OISF shall comply with all applicable Fire Department guidelines in effect January 1st of any given year during which the Annual Holiday Events is produced. Additional requirements may be added by the Fire Department as necessary, and at the Fire Department’s discretion no later than 30 days prior to the event. If there are any existing violations present by 4 p.m. the day of the Annual Holiday Events , the City may remove the non -compliant vendor(s) from the Annual Holiday Events , and/or prevent the violat ing party from participating in the Annual Holiday Events until all violations have been corrected.

3) OISF represents and warrants that OISF:

a. Has complied and shall at all times during the term of this Agreement comply, in all respects, with all immigration laws, regulations, statutes, rules, codes, 402
9 and orders, including, without limitation, the Immigration Reform and Control Act of 1986 (IRCA); and

b. Has not and will not knowingly employ any individual to perform services under this Agreement who is ineligible to work in the United States or under the terms of this Agreement; and

c. Has properly maintained, and shall at all times during the term of this Agreement properly maintain, all related employment documentation records including, without limitation, the completion and maintenance of the Form I-9 for each of OISF’s employees; and

d. Has responded, and shall at all times during the term of this Agreement respond, in a timely fashion to any government inspection requests relating to immigration law compliance and/or Form I -9 compliance and/or worksite enforcement by the Department of Homeland Security, the Department of Labor, or the Social Security Administration.

4) OISF shall require all subcontractors to make the same representations and warranties as set forth in Subsection 3 above.

5) OISF shall, upon request of City, provide a list of all employees working under this Agreement and shall provide, to the reasonable satisfaction of City, verification that all such employees are eligible to work in the United States . All costs associated with such verification shall be borne by OISF. Once such request has been made, OISF may not change employees working under this Agreement without written notice to City, accompanied by the verification required herein for such employees.

6) OISF shall require all subcontractors to make the same verification as set forth in Subsection 5 above.

7) If OISF or subcontractor knowingly employs an employee providing work under this Agreement who is not authorized to work in the United States, and/or fails to follow federal laws to determine the status of such employee , that shall constitute a material breach of this Agreement and may be cause for immediate termination of this Agreement by City.

8) OISF agrees to indemnify and hold City, its officials, and employees harmless for, of and from any loss, including but not limited to fines, penalties and corrective measures, City may sustain by reason of the Contrator's failure to comply with said laws, rules and regulations in connection with the performance of this Agreement.

I. Governing Law and Venue. This Agreement shall be construed in accordance with and governed by the laws of the State of California and OISF agrees to submit to the jurisdiction of California courts . Venue for any dispute arising under this Agreement shall be in Orange County, California.

403
10 J. Integration and Amendment. This Agreement constitutes the entire agreement of the parties. No other agreement, oral or written, pertaining to the work to be performed under this Agreement shall be of any force or effect unless it is in writing and signed by both parties . The City Manager or designee is granted authority to execute any amendments to this agreement.

10. Notice.

Except as otherwise provided herein, all notices required under this Agreement shall be in writing and delivered personally, by e -mail, or by first class mail, postage prepaid, to each party at the address listed below. Either party may change the notice address by notifying the other party in writing. Notices shall be deemed received upon receipt of same or within 3 days of deposit in the U.S. Mail, whichever is earlier. Notices sent by e-mail shall be deemed received on the date of the e-mail transmission.

“OISF” “CITY”

Orange International Street Fair City of Orange
112 East Chapman Avenue 300 E. Chapman Avenue
Orange, CA 92866 Orange, CA 92866
Attn: Adam Feliz Attn: City Manager’s Office

Email: [email protected] Email: [email protected]

11. Counterparts.

This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

Signatures transmitted via facsimile and electronic mail shall have the same eff ect as original signatures.

[Remainder of page intentionally left blank; signatures on next page]

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11 IN WITNESS of this Agreement, the parties enter into this Agreement on the year and day first above written.

“OISF” “CITY”

Orange International Street Fair, CITY OF ORANGE, a municipal 112 East Chapman Avenue, STE. G 300 East Chapman Avenue Orange, CA 92866 Orange, CA 92866
Attn: Board President Attn: City Manager
[email protected] [email protected]

By:

Printed Name: Daniel R. Slater, Mayor
Title:

ATTEST:

Pamela Coleman, City Clerk

APPROVED AS TO FORM:

Nathalie Adourian
Senior Assistant City Attorney

√

405
406

EXHIBIT “A”

STREET AND RIGHT-OF-WAY LAYOUT

[Behind this sheet.]
407
J:\GisProjects\StreetFair2021\GIS\APRX\StreetFair\StreetFair.aprx\Treats in the Street - 2025 2/21/2025
Source: City of Orange (2024)
0 200100
Feet.

E CHAPMAN AV

E ALMOND AVE

N OLIVE ST

N ORANGE ST

PLAZASQ

S GRAND ST

W CHAPMAN AV

S ORANGE STS OLIVE ST

S GLASSELL ST

W ALMOND AVE

E MAPLE AVEW MAPLE AVE

N LEMON ST N GLASSELL ST

N GRAND ST

S LEMON ST
LegendAnnual Holiday Events
Street Centerline

CITY OF ORANGE
Annual Holiday Events
408

EXHIBIT “B”

STAGING LAYOUT

[Behind this sheet.]

This item is determined and provided annually by Orange International Street Fair, Inc.

409

EXHIBIT “C”

ANNUAL HOLIDAY EVENTS

PLANNING SCHEDULE AND RESPONSIBILITIES

(Behind this sheet)
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Treats in the Streets:

The following is a guideline for the preparation, assignments, duties and responsibilities of OISF and other City departments in support of Treats in the Streets . Changes to these guidelines may be incorporated administratively as determined necessary by the City and OISF.

Ongoing
OISF fields calls from merchants and residents prior to Treats in the Streets.

Pre Event (60 days)
• OISF submits to City the layout for the staging of Treats in the Streets described in Section

4.B to Police, Fire, and Public Works for written approval. • OISF submits to City the layout and details of tents, audio equipment, portable restrooms, and any other equipment or materials related to Treats of the Streets not provided by City. Include power needs, if any.

Pre Event (45 days)
• OISF submits draft merchant letter to City for review.

Pre Event (30 days)
• OISF distributes information letter to Plaza merchants and residents. • OISF provides a list of contacts and phone numbers to City. • OISF orders trash liners and delivers to Corp Yard. OISF presents and conducts a meeting with Treats in the Streets participants to provide city staff an opportunity to explain standards and requirements.
• OPW orders disposable trash boxes
• OPW rents necessary equipment and materials for street closures. • OPW notifies OCTA of the event footprint to re-route buses.

Pre Event (15 days)
• Authorized representatives from City and OISF shall walk the footprint of Treats in the Streets to ensure the footprint meets safety standards.

Pre Event (5 days)
• OPW loads all equipment and material needed for setup and closure procedures. • OPW posts “no parking signs” on streets and parking lots.

Pre-Staging of Event (36 hours)
• OPW brings stored materials to site.
• OPW provides and places advanced detour signs.

411

Day of Treats in the Streets Event Duties

• 5:00 a.m. Southeast Quadrant closed and block off parking row behind the Assistance League to reserve space for VIP’s (OPW)
• 12:00 p.m. Closure begins. (OPW)
Traffic signals on E. Chapman & Grand and W. Chapman & Lemon to flash during the closure. (OPW)
• 2:00 p.m. Vendors & Subcontractors are permitted into the Plaza for unloading/set-up (OISF)
Vehicles will enter S. Orange Street and exit S. Olive Street (OISF). • 4:00 p.m. Event festivities begin (OISF)
• 7:00 p.m. Festivities end (OISF)
• 7:30 p.m. Vendor vehicles are allowed into the Plaza for loading; entering on S.

Orange St., exiting S. Olive St. once given the “all clear” from OPD and OPW (OISF, OPD, and OPW).
• 10:00 -11:30 p.m. Flashing lights are returned to standard and streets are reopened. (OPW)

Upon mutual agreement, OISF and the City will add other services or amend the timeline as needed to ensure a safe closure, the public right -of-way is kept clean, and the safe operation of Treats in the Streets.

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Annual Tree Lighting Ceremony

The following is a guideline for the preparation, assignments, duties and responsibilities of OISF and other City departments in support of the Annual Tree Lighting Ceremony. Changes to these guidelines may be incorporated administratively as determined necessary by the City and OISF.

Ongoing
OISF fields calls from merchants and residents prior to the Annual Tree Lighting Ceremony.

Pre Event (60 days)
• OISF submits to City the layout for the staging of the Annual Tree Lighting Ceremony described in Section 4.B to Police, Fire, and Public Works for written approval. • OISF submits to City the layout and details of tents, audio equipment, portable restrooms, and any other equipment or materials related to the Annual Tree Lighting Ceremony not provided by City. Include power needs, if any.

Pre Event (45 days)
• OISF submits draft merchant letter to City for review.

Pre Event (30 days)
• OISF distributes information letter to Plaza merchants and residents. • OISF provides a list of contacts and phone numbers to City. • OISF orders trash liners and delivers to Corp Yard. OISF presents and conducts a meeting with the Annual Tree Lighting Ceremony participants to provide city staff an opportunity to explain standards and requirements.
• OPW orders disposable trash boxes
• OPW rents necessary equipment and materials for street closures. • OPW notifies OCTA of the event footprint to re-route buses.

Pre Event (15 days)
• Authorized representatives from City and OISF shall walk the footprint of the Annual Tree Lighting Ceremony to ensure the footprint meets safety standards.

Pre Event (5 days)
• OPW loads all equipment and material needed for setup and closure procedures. • OPW posts “no parking signs” on streets and parking lots.

Pre-Staging of Event (36 hours)
• OPW brings stored materials to site.
• OPW provides and places advanced detour signs.

413

Day of Annual Tree Lighting Ceremony Event Duties

• 2:00 a.m. Plaza Closed with barriers (OPW)
• 8:00 a.m. Vendors permitted into Plaza for loading/unloading • 9:00 a.m Vendors must exit event grounds
• 10:00 a.m. Event opens for vendor sales and activities • 5:15 p.m Tree Lighting program begins
• 7:00 p.m. Event ends (OISF)
• 7:30pm Vendors may enter closure once given all clear by OPD (OISF, OPD, OPW) • 10:00 -11:30 p.m. Flashing lights are returned to standard and streets are reopened. (OPW)

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ORANGE INTERNATIONAL STREET FAIR, INC.
112 E. Chapman Avenue Suite G | Orange, CA 92866 | P:714.633.4816 | www.orangestreetfair.org

May 22, 2025
Mr. Tom Kisela, City Manager
City of Orange
300 E Chapman Avenue
Orange, CA 92866

RE: Letter of Intent (LOI)
Treats in the Street Event

Dear Mr. Kisela,

On behalf of the Orange International Street Fair, Inc. I am writing to officially express our intent to act as the Managing Organization for the Tree Lighting Ceremony. As a longstanding, community-oriented organization dedicated to fostering community enrichment, OISF possesses extensive experience in overseeing and managing this cherished special event.

This event aligns with our mission of community involvement and public service. We are enthusiastic about supporting this valued community event, which we believe plays a crucial role in promoting local engagement and celebrating our community.

As the Managing Organization, OISF will assume responsibility for the Tree Lighting Ceremony and oversee the various aspects of the event’s planning and execution, ensuring that it aligns with our goals and the high standards of the City of Orange. OISF will contract with the City of Orange to provide the necessary support services for the event, including public works and public safety management.

Following the acceptance of this Letter of Intent (LOI), OISF requests an amendment to the three-year production agreement executed with the City of Orange for the Treats in the Streets event to also incorporate the Tree Lighting Ceremony event.

Please let us know if there are any additional details or requirements needed from our organization to facilitate the process. We are dedicated to collaborating closely with your office to ensure a successful and memorable event for everyone involved. Thank you for considering our participation. We look forward to partnering with the City of Orange and making the Tree Lighting Ceremony event a tremendous success in the years to come.

Sincerely,

Adam Feliz, President
Board of Directors
Orange International Street Fair, Inc.

415
Agenda Item
City Council
Item #: 9.2. 8/12/2025 File #: 25-0387
TO: Honorable Mayor and Members of the City Council
THRU: Jarad Hildenbrand, City Manager
FROM: Christopher Cash, Public Works Director

1. SUBJECT
Memorandum of Agreement between the City of Orange and the Mabury Ranch Homeowner’s Association for tree maintenance. (Continued from May 13, 2025)

2. SUMMARY
This item is continued from the May 13, 2025 City Council meeting. The City of Orange and the Mabury Ranch Homeowner’sAssociation recognize the importance of maintaining trees within the Mabury Ranch community public right of way for the safety, aesthetic, and environmental benefits it provides. Approval of the memorandum of agreement with the Mabury Ranch Homeowner’s Association will entail tree maintenance at an initial cost of $99,000, and an ongoing tree maintenance cost of $5,000 annually.

3. RECOMMENDED ACTION
Approve the Memorandum of Agreement with Mabury Ranch Homeowner’s Association for tree maintenance at an initial cost of $99,000, and an ongoing tree maintenance cost of $5,000 annually.

4. FISCAL IMPACT
Upon approval of the appropriation, the initial expense for this Memorandum of Agreement for $99,000 will utilize one-time salary savings, with an additional ongoing annual cost of $5,000 to be funded through the General Fund.

5. STRATEGIC PLAN GOALS
Goal 5: Improve Infrastructure, Mobility, and Technology Objective 5.9: Identify costs and funding associated with maintaining new amenities

6. DISCUSSION AND BACKGROUND
This item was last heard at the May 13, 2025, City Council meeting. After the last meeting additional discussions were held with the Mabury Ranch Homeowners Association (MRHOA). The attached draft agreement was approved by MRHOA in July 2025. Under the agreement, the City would assume maintenance responsibilities for the trees within the public right-of-way. As a follow-up requested by the City Council, a detailed City arborist report for all Canary Island Pine trees along Serrano Ave. and Cannon Ave. was prepared. In summary, 52 pine trees out of 61 pine trees on Serrano Ave. are planted within a 4 feet wide planter without adequate soil volume and are planted too close to private walls. These trees are recommended for removal. Five trees have defects relating to inadequate spacing and/or they are damaging adjacent infrastructure. These trees are City of Orange Printed on 8/7/2025Page 1 of 3
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Item #: 9.2. 8/12/2025 File #: 25-0387
relating to inadequate spacing and/or they are damaging adjacent infrastructure. These trees are also recommended for removal. Finally, 4 of the 61 pine trees could be retained, however, it would require the removal of up to 3 Crape Myrtle trees that are adjacent and conflicting with the growth of the pine trees.

The 22 pine trees along Cannon Avenue have no substantial defects. They have comparatively far more soil volume and are further away from private walls and trees.

In conclusion, staff is recommending all 61 Canary Island Pine trees along Serrano to be removed as part of this agreement. The 22 pine trees along Cannon will be retained with an initial prune.

Below is the summary of all 226 trees as part of this agreement:

Location Canary
Island
Pines
Eucalyptus Elms Crape
Myrtle
Liquid
Ambers
Bradford
Pears
Initial Rem.

Cannon St. 22 6 28
Serrano Ave. 61 10 13 13 71
Mt.

McKindley
Blvd.
22 5 5 22
Yellowstone
Blvd.
21 21 2 23 21
Orange Park
Blvd.
5 22 9 31 5
Taft
Extension
7 7
100 126
The removal cost is estimated at $80,000 for 126 trees, including Canary Island Pines and Eucalyptus trees. The remaining 100 trees will require a special trim per the City Arborist’sdirection for an estimated cost of $19,000. Due to the existing landscape and surrounding infrastructure, replanting options are limited, however, staff will endeavor to replace trees where suitable within our existing tree planning program.

By approving this agreement, MRHOA agrees to not hold liable any damage or liability arising out of and associated with those trees that used to be maintained by MRHOA as identified in the agreement. In addition, MRHOA will reimburse the City an amount not to exceed $16,000 or the cost of the initial pruning of the 100 trees.

MRHOA has an interest in the replanting of trees in and adjacent to the Mabury Ranch community.

MRHOA will reimburse the City up to $5,000 in 2025 and another additional $5,000 in 2026 for planter modifications, if necessary, and replanting. Any trees planted will remain the maintenance obligation of the City.

7. ATTACHMENTS
City of Orange Printed on 8/7/2025Page 2 of 3
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Item #: 9.2. 8/12/2025 File #: 25-0387
· Memorandum of Agreement
· City Arborist Report
· Serrano and Cannon Inspection Note
City of Orange Printed on 8/7/2025Page 3 of 3
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Agenda Item
City Council
Item #: 9.2. 8/12/2025 File #: 25-0387
TO: Honorable Mayor and Members of the City Council
THRU: Jarad Hildenbrand, City Manager
FROM: Christopher Cash, Public Works Director

1. SUBJECT
Memorandum of Agreement between the City of Orange and the Mabury Ranch Homeowner’s Association for tree maintenance. (Continued from May 13, 2025)

5. STRATEGIC PLAN GOALS
Goal 5: Improve Infrastructure, Mobility, and Technology Objective 5.9: Identify costs and funding associated with maintaining new amenities

6. DISCUSSION AND BACKGROUND
This item was last heard at the May 13, 2025, City Council meeting. After the last meeting additional discussions were held with the Mabury Ranch Homeowners Association (MRHOA). The attached draft agreement was approved by MRHOA in July 2025. Under the agreement, the City would assume maintenance responsibilities for the trees within the public right-of-way. As a follow-up requested by the City Council, a detailed City arborist report for all Canary Island Pine trees along Serrano Ave. and Cannon Ave. was prepared. In summary, 52 pine trees out of 61 pine trees on Serrano Ave. are planted within a 4 feet wide planter without adequate soil volume and are planted too close to private walls. These trees are recommended for removal. Five trees have defects relating to inadequate spacing and/or they are damaging adjacent infrastructure. These trees are City of Orange Printed on 8/7/2025Page 1 of 3
powered by Legistar™
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Item #: 9.2. 8/12/2025 File #: 25-0387
relating to inadequate spacing and/or they are damaging adjacent infrastructure. These trees are also recommended for removal. Finally, 4 of the 61 pine trees could be retained, however, it would require the removal of up to 3 Crape Myrtle trees that are adjacent and conflicting with the growth of the pine trees.

The 22 pine trees along Cannon Avenue have no substantial defects. They have comparatively far more soil volume and are further away from private walls and trees.

In conclusion, staff is recommending all 61 Canary Island Pine trees along Serrano to be removed as part of this agreement. The 22 pine trees along Cannon will be retained with an initial prune.

Below is the summary of all 226 trees as part of this agreement:

Location Canary
Island
Pines
Eucalyptus Elms Crape
Myrtle
Liquid
Ambers
Bradford
Pears
Initial Rem.

Cannon St. 22 6 28
Serrano Ave. 61 10 13 13 71
Mt.

MRHOA has an interest in the replanting of trees in and adjacent to the Mabury Ranch community.

7. ATTACHMENTS
City of Orange Printed on 8/7/2025Page 2 of 3
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Item #: 9.2. 8/12/2025 File #: 25-0387
· Memorandum of Agreement
· City Arborist Report
· Serrano and Cannon Inspection Note
City of Orange Printed on 8/7/2025Page 3 of 3
powered by Legistar™
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MEMORANDUM OF AGREEMENT (MOA) BETWEEN CITY OF ORANGE AND THE MABURY RANCH HOMEOWNER’S ASSOCIATION
[Tree Maintenance]

This Memorandum of Agreement (hereinafter referred to as "MOA") is entered into on this _____ day of ___________________, 2025 ("Effective Date"), by and between the City of Orange, a California municipal corporation ("City"), and The Mabury Ranch Homeowners Association (“MRHOA”), a homeowners association organized and existing under the laws of California.

WHEREAS, the City and MRHOA recognize the importance of maintaining trees within the Mabury Ranch community for the safety, aesthetic, and environmental benefits it provides;

WHEREAS, the City has in place Ordinance No. 03-18, regarding tree preservation, as well as the Department of Public Works Standard Specifications for Planting, Removal and Maintenance of Street Trees and Shrubs, Orange Municipal Code 12.28.030 (“DPW Tree Specifications”);

WHEREAS, the City has the necessary resources and expertise for the maintenance, including pruning, removal, tree stump removal and replanting, of trees within the MRHOA community;

WHEREAS, the City now accepts responsibility for the tree maintenance of the trees identified in Exhibit A, following the DPW Tree Specifications; and

WHEREAS, this MO A constitutes the entire understanding of the Parties and no representation or agreements, oral or written, made prior to the execution hereof shall vary or modify the terms herein;

NOW, THEREFORE, the City and MRHOA hereby agree as follows:

1. Tree Maintenance Responsibility:

a. The City shall be responsible for the maintenance, including pruning, removal, tree stump removal and replanting, of trees located within the MRHOA community, which trees are identified in the attached Exhibit A, hereby incorporated to this MO A as though fully set forth again herein .

The parties agree that Exhibit “A” serves as a reference for the scope of tree maintenance responsibilities outlined in this MOA and this map supersedes any prior maps or agreements, whether written or oral.

b. Tree maintenance or removal shall be performed under the direction of the City , and in compliance with the DPW Tree Specifications.

c. Upon prior written notice by the City of no less than forty eight (48) hours of maintenance work to be performed, the MRHOA shall use its best efforts to obtain cooperation by its members to permit access to City personnel for the purpose of tree maintenance as required.

d. MHROA shall promptly communicate if concerns about tree safety arise so the City can quickly assess potential risks.
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2 e. City’s Field Services Manager (“City’s Project Manager”) shall be the person to whom MRHOA will report concerns to.

2. Liability:

a. The City shall not be held liable for any damages or liabilities arising from the trees that MRHOA is responsible for maintaining which are not designated on Exhibit A. However, the City shall remain liable and responsible for all trees for which they have maintenance responsibility.

b. In the event of a claim or liability arising from a City tree as identified in Exhibit A and incorporated by reference herein, MRHOA shall:

i. Notify the City within 60 days of becoming aware of such claim or liability. ii. Provide the City with all relevant information and documentation related to the claim or liability, including but not limited to photographs, incident reports, and witness statements.
iii. Cooperate fully with the City in the investigation and resolution of the claim or liability.

c. MRHOA acknowledges and agrees that it shall maintain adequate liability insurance coverage.

3. Indemnification:

For the first two (2) years from the date of this MOA, MRHOA will include the City, as an Additional Insured and provide Endorsements specifically naming the City on its commercial general insurance for the liability and defense of suits or claims arising out of the maintenance of the trees , as identified in Exhibit A and incorporated by reference herein. MRHOA shall provide the City evidence of insurance including all policies, endorsements and certificates.

Thereafter, the City shall be responsible for the liability and defense of suits arising out of and associated with the maintenance of the trees, as identified in Exhibit A and incorporated by reference herein.

4. Duration:

This MOA shall be effective as of the Effective Date and shall remain in force until both parties provide mutual written notice of termination, with a minimum of 30 days.

5. Cost Sharing:

MRHOA acknowledges and agrees that it shall reimburse the City not to exceed $16,000.00 (SIXTEEN THOUSAND DOLLARS and NO CENTS) for the cost of the initial pruning the trees, as identified in Exhibit A and incorporated by reference herein.

The City acknowledges and agrees that it will be responsible for the costs of the removal and/or maintenance of the trees, as identified in Exhibit A and incorporated herein. 423
3 MRHOA has an interest in the replanting of trees as stated in the Recitals above. MRHOA is willing to participate in the replanting of City approved trees, in City selected areas, on Cannon, Serrano Avenue, Mt. McKinley, Yellowstone Blvd., and Orange Park Blvd. ( that are immediately adjacent to the Mabury development), and MRHOA will reimburse the City up to and not to exceed $5,000.00 in 2025 , and MRHOA will reimburse the City up to and not to exceed an additional $5,000.00 in 2026 for such replanting. Any trees planted shall remain the maintenance obligation of the City.

This MOA does not alter the City’s obligations and maintenance responsibilities pursuant to the Orange Municipal Code or any other applicable code or ordinance concerning tree maintenance and preservation in the City of Orange.

6. Waiver of future dedication:

In addition to the cost sharing as described above, MRHOA also waives its right to seek the dedication, of any and all other MRHOA property, including at least two known greenbelt parcels, as well as any currently unknown but later discovered parcels. These may include parcels that were arguably contemplated to be dedicate d from MRHOA to the City in the original approvals. This waiver includes any future request s from MRHOA for the City to provide maintenance responsibilities for these parcels.

7. Amendments:

This MOA may only be amended in writing executed by both parties.

8. Superseding Clause:

This MOA supersedes any prior agreements, understandings, or representations, ordinances, council meeting agendas, developer correspondence, whether written or oral, between the City and MRHOA relating to tree maintenance and liability within the Mabury Ranch community.

9. Governing Law and Venue:

This Agreement shall be construed in accordance with and governed by the laws of the State of California and parties agree to submit to the jurisdiction of California courts. Venue for any dispute arising under this Agreement shall be in Orange County, California.

10. Integration:

This Agreement constitutes the entire agreement of the parties. No other agreement, oral or written, pertaining to the work to be performed under this Agreement shall be of any force or effect unless it is in writing and signed by both parties. Any work performed which is inconsistent with or in violation of the provisions of this Agreement shall not be compensated.

11. Notice:

Except as otherwise provided herein, all notices required under this Agreement shall be in writing and delivered personally, by e-mail, or by first class mail, postage prepaid, to each party at the address listed below. Either party may change the notice address by notifying the other party in writing. Notices shall be deemed received upon receipt of same or within 3 days of deposit in the 424
4 U.S. Mail, whichever is earlier. Notices sent by e-mail shall be deemed received on the date of the e-mail transmission.

"THE MABURY RANCH
HOMEOWNER’S ASSOCIATION” “CITY”

Nathan Swanek, President City of Orange
c/o Morgan Bomboy, 300 E. Chapman Avenue
Tritz Professional Management Orange; CA 92866
1525 E. 17th St, Suite “A” Attn: Field Services Manager Santa Ana CA, 92705
Email: [email protected] Email: [email protected] Telephone No.: 714-557-5900 Telephone No.: 714-532-6480

With a copy to:

Brian D. Moreno, Esq.

BRIAN D. MORENO LAW CORPORATION APC
1100 Town and Country Road, Suite 1250
Orange, CA 92868
[email protected]

12. Counterparts

This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Signatures transmitted via facsimile and electronic mail shall have the same effe ct as original signatures. The signature of Nathan Swanek on behalf of The Mabury Ranch Homeowners Association shall only be valid until and through June 1, 2025, unless this MOA has been fully executed by both Parties, after which Mr. Swanek’s signature (and the Association’s offer) shall be automatically withdrawn and of no effect.

[Remainder of page intentionally left blank; signatures on next page]

425
5 IN WITNESS of this Agreement, the parties have entered into this MOA as of the year and day first above written.

“MABURY RANCH “CITY”
HOMEOWNERS ASSOCIATION”
CITY OF ORANGE, a municipal corporation

*By: By:

Nathan Swanek, President Daniel R. Slater, Mayor

ATTEST:

Pamela Coleman, City Clerk

APPROVED AS TO FORM:

Nathalie Adourian,
Senior Assistant City Attorney √

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427

EXHIBIT “A”

SCOPE OF SERVICES AND MAP OF CITY

MAINTAINED TREES

[Beneath this sheet.]

428
429
March 25, 2025
Suitability of AdopƟng and Retaining 61 Canary Island Pine Trees along Serrano Blvd, and 22 Canary Island Pine Trees along Cannon St.

Prepared by:

Micah Jean – City of Orange Tree Services Coordinator
ISA Board CerƟﬁed Master Arborist WE-9971BM
ISA Tree Risk Assessment Qualiﬁed | ISA CerƟﬁed Urban Forest Professional Prepared for:

Chris Cash – City of Orange Director of Public Works
Background:

In August 2023, I provided a summary report of condiƟons regarding the suitability of adopƟng trees within the Right of Way adjacent to Mabury Ranch HOA. The report primarily served as a broad overview to establish esƟmated iniƟal and future maintenance costs. Future liability concerns due to observable condiƟons was a determining factor in anƟcipated costs.

A thorough inspecƟon of condiƟons was performed in March, 2025. This document serves to provide addiƟonal informaƟon on the 61 Canary Island Pine trees along Serrano Blvd, the 22 Canary Island Pines on Cannon St, and my recommendaƟon to remove the 61 trees on Serrano Ave, if adopted as City responsibility. This document is not intended to provide every observaƟon or potenƟal factor of concern, relaƟng to current condiƟons, defects, and likely future liability of these trees.

Method:

To determine the likelihood of future liability issues, and compaƟbility as City trees: trees were assessed for species characterisƟcs, immediate hazard, tree structural integrity defects, site condiƟons, and observed current infrastructure damage.

Tree Species CharacterisƟcs:

Canary Island Pine is the largest pine species naƟve to the Old World, with recorded height and width of 196’ tall and 105” DBH.

Mature trees are commonly 80-120’tall, with trunk widths 35-50” DBH. Canopy widths are commonly 20-35’.

Specimens in the naƟve range are reported to live over 800 years. In California, anƟcipated longevity is 100-200 years.

On a Low / Moderate / High scale for root damage potenƟal, Canary Island Pine is rated as Moderate.

Canary Island Pine has a generally deep root system. PrevenƟng root related infrastructuredamage relies upon correct site suitability and placement.
1 430
PlanƟng Site CondiƟons:
 On Serrano Ave:
52 trees are located within 11 planters, behind the sidewalk and abuƫng the private HOA wall.

Planters are 4’ wide, with some minor variance in width. Trees within planters are spaced an average of 17’ apart, with some outliers. Trees in planters were measured to be between 7” and 29” to the wall, and from 9” to 28” to the sidewalk.
9 trees are located east of the planters, with distances of up to 7’-9’ to HOA wall, and 26” to 68” to sidewalk.
 On Cannon St:
22 trees are located behind the sidewalk, adjacent to an open trail. Trees are generally spaced between 17’ to 20’ apart. Trees measured between7’to 8’to HOA wall, and 30” to 45” to sidewalk (with 1 excepƟon).

CompeƟƟon with Private Trees:

Many trees were observed to be in current conﬂict with private property tree canopies, and other trees are anƟcipated to have future conﬂicts with private trees, as the trees mature.  On Serrano Ave:
22 trees were observed to have canopies within 10’ of private trees. 11 trees were observed to be in contact with private trees. 23 tree trunks were observed to have less than 30’ proximity to private tree trunks.
 On Cannon St:
8 trees were observed to have canopies within 10’ of private trees. 4 trees were observed to be in contact with private trees. 11 tree trunks were observed to have less than 30’ proximity to private tree trunks.

Tree CondiƟons:
 On Serrano Ave:

Current tree size is generally small for the species, with DBH measurements between 5” and 20”. The majority of trees are approximately 8”-12” DBH. The 61 trees have the capacity to grow far larger than their current size. Defects in the main stem or branch structure were observed in many (15) trees. Of 15 trees with observed structural defects, 5 consƟtuted severe defects that currently warrant tree removal.

Of the 9 trees to the east and outside of the 4’ planters:
3 trees are sƟll staked, and staked improperly with a splint, which weakens trunk development. 2 addiƟonal trees were observed with poor structure.
4 trees have observable adjacent infrastructure damage. 1 tree trunk measured 9’ to light pole.
3 trees have insuﬃcient distance to 1 or more adjacent Crape Myrtle trees.  On Cannon St:

DBH measurements range from 10”-27”. The majority of trees are approximately 17”-20”. The 22 trees are anƟcipated to grow larger than their current size. 5 trees were improperly pruned to remove the majority of branches on the East facing side. 1 tree was impacted by an embedded 3”metal pole. No other substanƟal defects were observed.
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Current Infrastructure Damage:
 On Serrano Ave:
41/61 tree locaƟons observed to have current adjacent infrastructure damage. 27 locaƟons observed to have damage to public infrastructure. 28 locaƟons observed to have damage to adjacent private wall.
 On Cannon St:
13/22 tree locaƟons observed to have current adjacent infrastructure damage. 8 locaƟons observed to have damage to public infrastructure. 7 locaƟons observed to have damage to adjacent private wall.

PotenƟal for Future Damage and Liability:

Proper planning for tree planƟng is essenƟal to have healthy, long lived trees that provide many beneﬁts, while limiƟng liability over the lifeƟme of trees.

When determining suitable tree placement for a site, an important factor is the space available for canopy, trunk, and root growth. Considering soil volume is a necessary component of site suitability.

Trees require adequate oxygen-rich soil space for their roots, to anchor and provide the tree water and nutrients. When trees are surrounded by hardscape, their available root space isgreatly diminished and made more inhospitable due to soil compacƟon, and other factors. When trees are placed close together, this also reduces soil volume available per tree, and the trees compete for this space. These condiƟons can create adverse eﬀects, such as: stunted growth, poor health, poor anchorage, abnormal or raised root crown (mounding of the soil around trees), suscepƟbility to spread of pests and disease, increased likelihood of root conﬂicts with infrastructure, and increased likelihood of tree failure.

Generally, a “good”soil volume for a large tree is 1000 cu. Ō. For reference, the County of San Diego requires 600 cu. Ō. for small trees, 1000 cu. Ō. for medium size trees, and 1500 cu. Ō. for large trees (County of San Diego BMP Design Manual, SecƟon K, pg 32). The City of Orange Master Street Tree Plan (1999) establishes 8’ x 8’ as a minimum planƟng area for the species. If the root zone is limited to an 8’ x 8’ square, the soil volume is esƟmated as 192 cu. Ō.  On Serrano Ave:
52 trees within the 4’ planters do not meet the minimum requirement of an 8’ x 8’ square, and also do not have adequate soil volume. Trees within the 4’ planter are very likely to cause both public and private infrastructure damage. It is very likely that the future replacement of surrounding infrastructure would require the removal of trees.
 On Cannon St:
22 trees have comparaƟvely far more soil volume, and root space. Trees are located further from the private wall, as well as sidewalk. Trees are inadequately spaced, and in too close proximity to private trees. Due to the current proximity of the privatewall and sidewalk, there is opportunity to follow the City standard operaƟng procedure for root miƟgaƟons. There is potenƟal for selecƟve root removal to allow for retenƟon of trees, at the Ɵme of potenƟal future sidewalk replacement.

Conclusion:

The Canary Island Pine trees of concern are generally not observed to be diseased, though there are a range of minor to major defects on some trees. Many trees have adjacent infrastructure damage present. Many trees have canopy conﬂicts with private trees.  On Serrano Ave:

The mature size of the species is highly non-compaƟble with the proximity to the HOA wall, as well as the undersized planter where they reside. The current size of the pines is considered small/ immature for the species, and it is anƟcipated that they would grow much larger . A mature Canary Island Pine 3 432
has the potenƟal trunk size over 4’ in diameter,as wide as the enƟre planter . As trees mature, their trunk ﬂare and root crown (the widening at the base of the tree, where the trunk connects to the roots) oŌen become more pronounced, which has a very high likelihood of damage to adjacent infrastructure when planted in inadequate space.

Due to the inadequate space, the likelihood of any root miƟgaƟons performed being successful without undermining the stability of the trees is unlikely. When making determinaƟons to the suitability of selecƟve root removal for root miƟgaƟons, proximity of cuts to the trunk is a major consideraƟon. It would be very likely that sidewalk replacement would result in observaƟons of root caused damage, and required root miƟgaƟons would result in the removal of trees.

It is very likely that 52 trees planted within the 4’ planter will present with future liability issues. The likelihood of future issues greatly exceeds the potenƟal liability of typical new City tree locaƟons, due to the combinaƟon of small planter size, proximity to private infrastructure, and species.

The 9 trees not located in 4’ planters are assessed to havecomparaƟvely lower likelihood of damage related to soil volume, and distance to the private wall. The 9 trees were observed to have defects, substanƟally inadequate spacing, and current adjacent infrastructure damage. 61/61 Canary Island Pine Trees located on Serrano Ave are recommended for removal, if adopted as City responsibility.
 On Cannon St:

There is a comparaƟvely far greater space between infrastructure and trees, on Cannon St. Due to more available space, there is potenƟal to follow normal root assessment and miƟgaƟon procedures during infrastructure repair .
22/22 Canary Island Pine Trees located on Cannon St are recommended for retenƟon, if adopted as City responsibility.
4 433
Examples of Current Infrastructure Damage
28 tree locations observed to have current damage to adjacent private wall. 5 434
Examples of Current Infrastructure Damage
6 435
7 436
8 437
9 438
10 439
11 440
12 441
13 442
Serrano Canary Island Pine INSPECTION NOTES 3/17-18 2025 West to East
PlanterTree NumberDBH Sidewalk Private WallAdjacent PineTrunk to trunkCanopy Defects / Other Current Infrastructure damage observed 1 T-1 10" 17" 29" 18' 15' Poor Structure, Co-dominate Sidewalk displaced at 7' to trunk, sidewalk cracked at 2' to trunk, cracked curb and gutter 1 T-2 8" 22" 20" 16' 10' In contact
1 T-3 9" 18" 26" 17' 8' In contact
1 T-4 8" 21" 25" 16' 12' Cracked curb and gutter
1 T-5 9" 20" 20" Last in row 2@5', 1@15' 4' to cracked wall column 2 T-6 Vacant site, tree previously removed. 8' from previous tree location: Displaced and cracked sidewalk. cracked curb and gutter 2 T-7 11" 16" 18" 17' 2' - Cracked wall. Cracked curb and gutter. 2 T-8 14" 20" 14" 17' Very poor structure. Increased risk of failure. 2.5' cracked / patched wall. Multiple underground utilities between T-8 and T-9, with cracked concrete. 2 T-9 13" 12" 17" 17' Wall cracks 1@2', 1@6'. Chipped sidewalk. Cracked curb and gutter. 2 T-10 14" 16" 19" Last in row 8' Trunk proximity to light pole. Displaced sidewalk panels @5' @8', grinds at 15', Cracks around light pole. 3 T-11 16" 18" 19" 17' 4" surface root between trunk and column Cracked block in wall column. Cracked and raised sidewalk at 8' 3 T-12 13" 18" 21" 17' Wall crack adjacent to trunk. Additional light crack between T-11 and T-12. Minor sidewalk crack, and broken corner of panel. 3 T-13 13" 17" 20" 17' Light wall crack @ 2.5'
3 T-14 20" 17" 18" 3" root abutting sidewalk. Very poor structure. Co-dom at 4'.Sidewalk displaced. Wall cracked @2', @6'. 3 T-15 14" 17" 24" Last in row Poor branch structure. SW cracked and displaced at 6'. Wall column cracked at 5'. 4 T-16 8" 18" 25" 17' Vertical wall crack @4', Broken SW at 8' 4 T-17 12" 23" 21" 18' Poor branching structure
4 T-18 12" 20" 20" 18' 25' Less than 1' Vertical crack @3' 4 T-19 8" 24" 21" 16' 20' 0' Cracked curb and gutter
4 T-20 8" 24" 20" Last in row 25' 3' Very poor structure, narrow co-dom w/ included barkCracked wall and column 5 T-21 8" 20" 21" 15' Narrow canopy, 2" surface root
5 T-22 7" 18" 18" 18' 30' 2' Root barrier @10", surface roots, poor trunk flare. Narrow.Vertical crack in wall @3' 5 T-23 8" 15" 19" 25' 0' Root barrier @4". Poor / lack of radial flare. 5 T-24 9" 14" 20" 16' Sprinkler @6"
5 T-25 7" 26" 30" Last in row 12' 0' All branches limited to North side. Surface roots. 6 T-26 4" 24" 24" 16' 30' 0' Staked and tied @ 12'. Root barrier @ 6" 6 T-27 12" 20" 20" 18' CompetingRoot barrier @ 10". Poor radial flare. 6 T-28 8" 28" 26" 17' Root barrier @9". Wall cracked / patched @ 4' 6 T-29 10" 24" 24" 17' Root barrier @12" Adjacent SW panel displaced. Wall cracked / patched. 6 T-30 12" 21" 22" last in row Root barrier @6". Sprinkler @16" Adjacent concrete grinds. Cracked and raised SW parallel with wall, broken curb and gutter 7 T-31 7" 25" 26" 18' 20' 3' Root barrier@12". Sprinkler@24" 7 T-32 9" 18" 25" 17' 15' 1' Root barrier@10". Surface roots. Raised concrete panel. Cracked wall column @3' 7 T-33 12" 18" 19" 18' 0' Sprinkler @18". Surface roots. Very poor structure. 7 T-34 9" 20" 17" 18' Ultility man-hole, with cracked sw. 7 T-35 10" 21" 7" 17' Root barrier@12". Corrected lean. Co-dom @20'. Displaced concrete panel. 7 T-36 12" 21" 21" 20' cracked wall column@4'. Minor SW displacement@3' 7 T-37 12" 21" 22" Last in row 20' and 30' 4' and 6'Surface roots abutt wall. 8 T-38 14" 18" 24" 21' 8' to light pole. 1' proximity of canopy to pole. Adjacent concrete to all trees in 8th planter appears minor elevated on planter sd, and depressed at curb side. 8 T-39 10" 24" 26" 19' Patched wall crack
8 T-40 12" 23" 23" last in row 15' CompetingRoot barrier@10" 9 T-41 10" 22" 28" 18' 45' 5' Surface root. Raised and cracked SW. 9 T-42 10" 23" 25" 18' 20' 3' Cracked wall, missing brick. 9 T-43 10" 24" 23" 24' 25' trunk 9' to light pole. Canopy @3' to pole. Wall lightly cracked 9 T-44 5" 27" 26" 12' 8' 0' Corrected lean. Stake tied at 8'. Root barrier@12".Cracked/patched wall. 9 T-45 7" 24" 25" Last in row 20' 0' Wall cracked. Cracked and raised SW at 18' 10 T-46 8" 18" 26" 17' Competing with adjacent pine. 3' to Edison Vault. 10 T-47 18" 20" 18" 20' Cracked wall @6'
10 T-48 9" 14" 23" last in row Very poor structure. Likely previously topped at 9'.Cracked and raised SW @14'. Adjacent SW panel cracked at seam. 11 T-49 20" 9" 19" 18' Sprinkler @4". Lightpole 12' to trunk. Poor structure.Displaced SW@6'. 11 T-50 16" 13" 23" 19'
11 T-51 14" 15" 17" 18' Wall crack @8'. Surface roots.
11 T-52 9" 20" 19" Last in row Co-dom with included bark @20' Wall crack at 2' OutsideT-53 8" 32" 86" Corrected lean. Poor structure. 7' to wall crack.

OutsideT-54 13" 26" 85" 22' 9' to light pole. Sidewlk cracked @11' OutsideT-55 13" 68" 84" 23' 30' Possible retention. Wall cracked OutsideT-56 12" 68" 84" 15' Possible retention. SW cracked at 7'. Wall cracked at 18' OutsideT-57 6" 40" 120" 47' Improperly staked with splint. Too close to private Euc.

OutsideT-58 35" 120" 18' 9' Co-dom . Improperly staked with splint.

OutsideT-59 5" 54" 108" 15' 25' 8' Improperly staked with splint.

OutsideT-60 9" 52" 108" 29' 20' 4' Corrected lean @2'. Narrow competing leader at 10'Compensating root growth on SW side likely to increase, due to lean.

OutsideT-61 13" 48" 108" Possible retention Multiple Crape Myrtle in conflict (6", 2" DBH) Infrastructure Proximity to trunk Proximity to Private tree 443
Cannon St Canary Island Pine INSPECTION NOTES 3/25/25
South to North
Tree NumberDBH Sidewalk Private WallAdjacent PineTrunk to trunkCanopy Defects / Other Current Infrastructure damage observed T-1 17" 35" 90" 19' 14' Improperly pruned to remove majority of branches on east facing side, and to remove overhang of private trees.

T-2 18" 39" 90" 20' 15' Improperly pruned to remove majority of branches on east facing side, and to remove overhang of private trees.

T-3 20" 38" 90" 20' 10' 8' Improperly pruned to remove majority of branches on east side.2" and 3" surface roots observed.

T-4 14" 30" 96" 21' 12' Improperly pruned to remove majority of branches on east side.Sidewalk cracked @ 11' T-5 11" 45" 96" 17' 16' 8' Improperly pruned to remove majority of branches on east side.Sidewalk displaced @4' T-6 17" 35" 96" 17' 10' 0' Elevated root crown. Wall cracked T-7 19" 35" 96" 19' 15' 3'
T-8 20" 38" 96" 20' 13' 0'
T-9 12" 34" 96" 19' Corrected lean
T-10 26" 34" 90" 67' Displaced sidewalk at 6'
T-11 19" 36" 90" 19' 8' to light pole. Sidewalk displaced @8'. Wall crack@9' T-12 21" 38" 84" 18'
T-13 17" 38" 90" 19' 15' 0' wall crack @7'
T-14 20" 35" 90" 18' 3" metal pole embedded in trunk. patched wall crack.

T-15 21" 28" 90" 20' 20' 0' 10" to "RCV" utility box. Sidewalk displaced @6' T-16 10" 39" 96" 20' Sidewalk displaced @4'
T-17 22" 36" 90" 20' Sidewalk displaced @8'. Wall crack@8' T-18 15" 40" 96" 73' 16' 0'
T-19 23" 31" 90" 19' minor wall crack
T-20 19" 37" 90" 19' Sidewalk displaced@6'. Wall cracked.

T-21 27" 32" 90" 19' 5' to "RCV" utility box Sidewalk cracked.

T-22 19" 6" 90" 5.5' to light pole. New sidewalk installed very close to trunk.

Infrastructure Proximity to trunk Proximity to Private tree 444
Agenda Item
City Council
Item #: 9.3. 8/12/2025 File #: 25-0384
TO: Honorable Mayor and Members of the City Council
THRU: Jarad Hildenbrand, City Manager
FROM: Christopher Cash, Public Works Director

1. SUBJECT
Establishment of Permit Parking Area “AC”to be comprised of both sides of E. Via Lardo Avenue from S. Hewes Street to easterly terminus. Resolution No. 11626.

2. SUMMARY
Staff received a request for permit parking on Via Lardo Avenue. The request was processed in accordance with the City’s Neighborhood Permit Parking Program, adequately supported by the affected property owners, and approved by the City Traffic Commission. If approved, Via Lardo Avenue will establish Permit Parking Area “AC”.

3. RECOMMENDED ACTION
Adopt Resolution 11626 approving permit parking on Via Lardo Avenue. A Resolution of the City Council of the City of Orange adopting a revised master resolution of designated permit parking areas and established permit parking opportunity areas within the City of Orange.

4. FISCAL IMPACT
None.

5. STRATEGIC PLAN GOALS
Goal 5: Improve Infrastructure, Mobility, and Technology

6. DISCUSSION AND BACKGROUND
The City’s Neighborhood Permit Parking Program (NPPP) provides a mechanism for protecting residential streets from external parking overflow when certain criteria are satisfied. To initiate the NPPP process, a property owner on an affected and eligible street must submit a written request identifying the streets and boundaries for permit parking as well as days and times where demand for on-street parking is the highest. City staff will review the proposed streets for eligibility for incorporation into the permit parking program. Once reviewed, staff will conduct a parking occupancy study on eligible streets. A street must have a minimum 75% parking occupancy and 75% property owner support via a petition process. If these criteria are met, staff will present the proposed permit parking boundaries to City Traffic Commission (CTC) for initial review and City Council for final approval.

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445
Item #: 9.3. 8/12/2025 File #: 25-0384
Permit Parking on E. Via Lardo Avenue
Staff received a written request to implement permit parking on E. Via Lardo Avenue. After reviewing the street and neighborhood, staff confirmed that E. Via Lardo Avenue met the objectives and criteria of the City’sNPPP for permit parking consideration. Staff mapped the number of legal parking spaces for the street and conducted parking occupancy studies during hours of highest demand identified by the proponent. E. Via Lardo Avenue exceeded the 75% minimum level of parking occupancy, with an average parking occupancy of 100%. Subsequently, staff mailed petitions to affected property owners. The results of the petition process for E. Via Lardo Avenue indicate that 75% of property owners are in favor of permit parking, 0% are opposed, and 25% did not respond.

Because the property owner support on the street met the 75% stipulated in the NPPP, staff supports, and the CTC recommends implementation of permit parking. If approved, E. Via Lardo Avenue, from S. Hewes Street to easterly terminus, would establish Permit Parking Area “AC”.

7. ATTACHMENTS
· Attachment 1 Resolution No. 11626
· Attachment 2 Via Lardo Activation Map
· Attachment 3 City Traffic Commission Staff Report June 11, 2025 · Attachment 4 Draft City Traffic Commission Minutes June 11, 2025 · Attachment 5 Notification Letter Via Lardo
City of Orange Printed on 8/7/2025Page 2 of 2
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446
Agenda Item
City Council
Item #: 9.3. 8/12/2025 File #: 25-0384
TO: Honorable Mayor and Members of the City Council
THRU: Jarad Hildenbrand, City Manager
FROM: Christopher Cash, Public Works Director

1. SUBJECT
Establishment of Permit Parking Area “AC”to be comprised of both sides of E. Via Lardo Avenue from S. Hewes Street to easterly terminus. Resolution No. 11626.

4. FISCAL IMPACT
None.

5. STRATEGIC PLAN GOALS
Goal 5: Improve Infrastructure, Mobility, and Technology

City of Orange Printed on 8/7/2025Page 1 of 2
powered by Legistar™
447
Item #: 9.3. 8/12/2025 File #: 25-0384
Permit Parking on E. Via Lardo Avenue
Staff received a written request to implement permit parking on E. Via Lardo Avenue. After reviewing the street and neighborhood, staff confirmed that E. Via Lardo Avenue met the objectives and criteria of the City’sNPPP for permit parking consideration. Staff mapped the number of legal parking spaces for the street and conducted parking occupancy studies during hours of highest demand identified by the proponent. E. Via Lardo Avenue exceeded the 75% minimum level of parking occupancy, with an average parking occupancy of 100%. Subsequently, staff mailed petitions to affected property owners. The results of the petition process for E. Via Lardo Avenue indicate that 75% of property owners are in favor of permit parking, 0% are opposed, and 25% did not respond.

A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF ORANGE ADOPTING A REVISED MASTER

RESOLUTION OF DESIGNATED PERMIT PARKING

AREAS AND ESTABLISHED PERMIT PARKING

OPPORTUNITY AREAS WITHIN THE CITY OF
ORANGE

WHEREAS, pursuant to California Vehicle Code Section 22507, local authorities may generally prohibit or restrict the stopping, parking, or standing of vehicles on certain streets or highways, or portions thereof, during all or certain hours of the day; and

WHEREAS, local authorities may also include a designation of certain streets upon which preferential parking privileges are established with a permit or permits that exempt them from the prohibition or restriction of the ordinance or resolution; and

WHEREAS, pursuant to the authority provided by the California Vehicle Code, the City Council of the City of Orange codified Chapter 10.30 of the Orange Municipal Code generally establishing parking requirements for the City of Orange; and

WHEREAS, Sections 10.30.010 and 10.30.020 specifically establishes the Neighborhood Parking Permit Program designating portions of certain public streets for permit-parking and explicitly authorizes the City Council of the City of Orange to add, remove or modify designated areas within the Neighborhood Parking Permit Program by resolution; and

WHEREAS, the creation of a “Master Resolution” containing all the permit parking areas in a single document eliminates the need to potentially revise multiple resolutions when an area is added, deleted, or modified within the Neighborhood Parking Permit Program; and

WHEREAS, the City Council of the City of Orange most recently adopted said Master Resolution on May 13, 2025 (Resolution No. 11606), containing a list of all permit parking areas within the City; and

WHEREAS, staff now recommends adding additional streets in the Neighborhood Permit Parking Program; and

WHEREAS, accordingly, the City Council desires to rescind Resolution No. 11606 and replace it with a revised Resolution;

NOW, THEREFORE, BE IT RESOLVED , by the City Council of the City of Orange does resolve as follows:

SECTION I:

That Resolution No. 11606, adopted May 13, 202 5, is hereby rescinded, effective immediately upon the date of the adoption of Resolution No. 11626. 449
2 SECTION II:

The following streets be added to the Neighborhood Permit Parking Program as Area “AC”:

Both sides of E. Via Lardo Avenue from S. Hewes Street to Easterly Terminus.

SECTION III:

That the Master Resolution of Permit Parking Area for the Neighborhood Permit Parking Program attached hereto as Exhibit s “A”, “B”, “C”, “D”, “E”, “F”, “G”, “H” and “I” are hereby adopted.

ADOPTED this day of , 2025

Daniel R. Slater, Mayor, City of Orange

ATTEST:

Pamela Coleman, City Clerk, City of Orange

APPROVED AS TO FORM:

Wayne W. Winthers
Interim City Attorney, City of Orange

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

Pamela Coleman, City Clerk, City of Orange
450
Exhibit A

Page 1 of 7 ends

Orange City CouncilAugust 12, 2025

Orange City Council
August 12, 2025