AGENDA
Special Meeting of the
Scotts Valley City Council
In-Person and Remote Access
Date: July 10, 2024
Time: 10:00 AM
CONTACT
INFORMATION
MEETING LOCATION POSTING
City of Scotts Valley
1 Civic Center Drive
Scotts Valley, CA 95066
(831) 440-5600
City Council Chambers
1 Civic Center Drive
Scotts Valley, CA 95066
OR
Zoom Video Conference
https://us02web.zoom.us/j/83295730901
Agenda posted on 7-5-
2024 at City Hall, SV
Senior Center, SV Public
Works Building, and on the
Internet
at: www.scottsvalley.gov
ELECTED OFFICIALS CITY STAFF MEMBERS
Randy Johnson, Mayor
Derek Timm, Vice Mayor
Jack Dilles, Council Member
Donna Lind, Council Member
Allan Timms, Council Member
Mali LaGoe, City Manager
Kirsten Powell, City Attorney
Stephanie Hill, Administrative Services
Director
Cathie Simonovich, City Clerk
MEETING NOTICE AND AGENDA PACKET MATERIALS
Notice regarding City Council Meetings:
The City Council meets regularly on the 1st and 3rd Wednesday of each month at 6:00 PM in the City Hall Council Chambers located at 1 Civic Center Drive, Scotts Valley, CA 95066, and via Zoom Webinar remote access.
Agenda and Agenda Packet Materials:
The City Council agenda and the complete agenda packet are available for review by 5:00 PM the Friday before the Wednesday meeting on the Internet at the City’s website:
www.scottsvalley.gov and in the lobby of City Hall at 1 Civic Center Drive, Scotts Valley, CA.
Pursuant to Government Code §54957.5, materials related to an agenda item, submitted after distribution of the agenda packet, are available for public inspection in the lobby of City Hall during normal business hours, Monday-Friday, 8am-12 pm and 1-5 pm. In accordance with AB 1344, such documents will be posted on the City’s website at www.scottsvalley.gov.
Public Participation:
The meeting will be available on Zoom and livestreamed to the City of Scotts Valley’s YouTube channel: https://www.youtube.com/channel/UCLNTBScelB4wTfidYHrocWA For those wishing to participate via Zoom you can join the following ways:
Zoom Webinar meeting link: https://us02web.zoom.us/j/83295730901 Or dial one of these numbers: (669) 900-9128 or (669) 444-9171
City Council Meeting Agenda Page 2
Date: July 10, 2024
Webinar ID: 832 9573 0901
Whether attendance is in-person or remote, you will be given opportunities to provide public comment at the appropriate times throughout the meeting. The time limit is up to 3 minutes for an individual, or 5 minutes for someone who is representing a group of three or more, at the discretion of the Mayor. Please note that this is not a question-and-answer time, but simply a time to provide comments to the Council. At the appropriate times during the meeting for public comment, on items not on the agenda, and on specific agenda items, the Mayor will announce that public comment will be accepted.
How to comment via in-person attendance:
Please proceed to the public comment podium when the Mayor opens the item for public comment.
How to comment via Zoom Webinar:
Use the webinar attendee option to “raise hand” when the Mayor opens the item for public comment. The Clerk will unmute you when it is your turn. If you have joined via Zoom phone call, dial *9 or your phone to “raise your hand”, and the Clerk will unmute you when it is your turn.
CALL TO ORDER 10:00 AM
PLEDGE OF ALLEGIANCE and MOMENT OF SILENCE
ROLL CALL
PUBLIC COMMENT TIME
This is the opportunity for individuals attending in person to make oral comments to the Council on any items within the purview of the Council, which are NOT part of the Agenda. No action on the item may be taken, but the Council may request the matter be placed on a future agenda. Written public comment may be emailed to the City Clerk by 5:00 PM on the day of the meeting at [email protected].
ALTERATIONS TO CONSENT AGENDA
Council can remove or add items to the Consent Agenda.
CONSENT AGENDA
The Consent Agenda is comprised of items which are intended to be non-controversial and are approved without discussion. Persons wishing to speak on any item may request the item be moved to the Regular Agenda by raising their hand to be recognized by the Mayor. An item will only be moved from the Consent Agenda to the Regular Agenda if a City Council Member requests it to be moved and a majority of the Council agrees.
City Council Meeting Agenda Page 3
Date: July 10, 2024
1. Approve check register dated 6-7-2024 through 7-2-2024
2. Approve Settlement Agreement with employees regarding payroll items
3. Approve National Opioid Settlement participation
ALTERATIONS TO REGULAR AGENDA
Council can remove or add items to the Regular Agenda.
REGULAR AGENDA
Persons wishing to speak on any item may do so by raising their hand to be recognized by the Mayor.
1. Introduction of Ordinance No. 73.3 amending Scotts Valley Municipal Code Section 2.24.020 regarding City Council Member benefits
ADJOURNMENT
ADA NOTICE
The City of Scotts Valley does not discriminate against persons with disabilities. The City Council Chambers is an accessible facility. If you wish to attend a City Council meeting and require assistance such as sign language, a translator, or other special assistance or devices in order to attend and participate at the meeting, please call the City Clerk's office at (831) 440-5600 five to seven days in advance of the meeting to make arrangements for assistance. If you require the agenda of a City Council meeting be available in an alternative format consistent with a specific disability, please call the City Clerk’s Office. The California State Relay Service (TTY/VCO/HCO to Voice: English 1-800-735-2929, Spanish 1-800-855-3000; or, Voice to TTY/VCO/HCO:
English 1-800-735-2922, Spanish 1-800-855-3000), provides Telecommunications Devices for the Deaf and Disabled and will provide a link between the TDD caller and users of telephone equipment.
City Council Meeting Agenda Page 4
Date: July 10, 2024
PROCEDURAL INFORMATION FOR THE PUBLIC
THE FOLLOWING IS THE PROCEDURE COUNCIL SHOULD TAKE IN
APPROVAL OF A RESOLUTION:
1. Move the Resolution number for approval.
2. Second the motion.
3. Vote by body, a roll call vote is not required.
THE FOLLOWING IS THE PROCEDURE COUNCIL SHOULD TAKE IN
INTRODUCTION/ADOPTION OF AN ORDINANCE:
1. Move the Ordinance number for introduction (or adoption).
2. Move the Ordinance be introduced by title only and waive the reading of the text.
3. Read the Ordinance title.
4. Second the motion.
5. Vote by body, a roll call vote is not required.
THE FOLLOWING IS THE PROCEDURE COUNCIL SHOULD TAKE IN
PUBLIC COMMENT/PUBLIC HEARINGS:
Unless otherwise determined by the presiding officer of the meeting:
1. Three minutes allowed per individual to speak.
2. Five minutes allowed per individual representing a group of three or more. ❖❖❖❖❖❖❖❖
The City of Scotts Valley does not discriminate against persons with disabilities. The City Council Chambers is an accessible facility. If you wish to attend a City Council meeting and require assistance such as sign language, a translator, or other special assistance or devices in order to attend and participate at the meeting, please call the City Clerk's office at (831) 440-5602 five to seven days in advance of the meeting to make arrangements for assistance. If you require the agenda of a City Council meeting be available in an alternative format consistent with a specific disability, please call the City Clerk’s Office. The California State Relay Service (TTY/VCO/HCO to Voice: English 1-800-735-2929, Spanish 1-800-855-3000; Voice to TTY/VCO/HCO: English 1- 800-735-2922, Spanish 1-800-855-3000; or, from or to Speech-to-Speech, English & Spanish 1- 800-854-7787), provides Telecommunications Devices for the Deaf and Disabled and will provide a link between the TDD caller and users of telephone equipment.
apadatecr2 City of Scotts Valley llambert 07/02/2024 09:54 Page 1 A/P Check Register Checks from 06/07/2024 to 07/02/2024
Check Check Vendor Name Net Check Check CheckNumber Date Amount Status Type Cash Account: 999-10100-000-000-000000
131867 06/13/24 ACC BUSINESS 1,218.93 O Regular
131868 06/13/24 AFLAC-FLEX ONE 411.86 O Regular131869 06/13/24 AMAZON CAPITAL SERVICES 76.73 O Regular131870 06/13/24 ANDERSON PACIFIC ENG INC. 163,184.45 O Regular131871 06/13/24 ASSOCIATED SERVICES CO. 224.81 O Regular131872 06/13/24 AT&T 1,574.30 O Regular131873 06/13/24 BADAWI & ASSOCIATES 8,880.75 O Regular131874 06/13/24 BAKER TILLY US, LLP 10,850.00 O Regular131875 06/13/24 BAY TREE, LLC 3,620.38 O Regular131876 06/13/24 BOYS & GIRLS CLUBS SC COUNTY 14,000.00 O Regular131877 06/13/24 BURKE, WILLIAMS & SORENSEN,LLP 2,604.00 O Regular131878 06/13/24 BUSINESS WITH PLEASURE 65.85 O Regular131879 06/13/24 COMMUNITY BRIDGES 6,500.00 O Regular131880 06/13/24 CONFLICT RESOLUTION CENTER 3,000.00 O Regular131881 06/13/24 CONTI LLC 48,238.15 O Regular131882 06/13/24 DIENTES COMMUNITY DENTAL 5,000.00 O Regular131883 06/13/24 GARRETT KUBOTA DDS 572.00 O Regular131884 06/13/24 HOUSEKEYS, INC. 18,750.00 O Regular131885 06/13/24 KIMLEY-HORN & ASSOCIATES INC 18,093.78 O Regular131886 06/13/24 LINCOLN FINANCIAL GROUP 1,461.21 O Regular131887 06/13/24 LINDA KAEMPFER BAKER 95.00 O Regular131888 06/13/24 NBS GOVERNMENT FINANCE GROUP 14,841.25 O Regular131889 06/13/24 PACIFIC GAS & ELECTRIC CO 524.28 O Regular131890 06/13/24 PALACE BUSINESS SOLUTIONS 131.76 O Regular131891 06/13/24 PETTY CASH - LAUREN LAMBERT 141.26 O Regular131892 06/13/24 PHILLIP D NEUMAN 2,253.65 O Regular131893 06/13/24 PRESS BANNER 893.30 O Regular131894 06/13/24 PRODESSE PROPERTY GROUP 3,523.52 O Regular131895 06/13/24 RANDALL KRUSEE 196.65 O Regular131896 06/13/24 RANDY JOHNSON 137.80 O Regular131897 06/13/24 ROD MARKELL 1,974.00 O Regular131898 06/13/24 SCOTTS VALLEY FIRE DISTRICT 831.06 O Regular131899 06/13/24 STEVE WALPOLE 1,100.00 O Regular131900 06/13/24 TRISH MC GRATH 121.60 O Regular131901 06/13/24 TYLER HEBARD 173.00 O Regular 131902 06/13/24 United Financial Casualty Co. 3,068.07 O Regular131903 06/13/24 VISION SERVICE PLAN 1,197.00 O Regular131904 06/21/24 A SIGN ASAP 837.80 O Regular131905 06/21/24 ACCENT CLEAN & SWEEP INC 2,739.00 O Regular131906 06/21/24 ACCO ENGINEERED SYSTEMS 3,386.00 O Regular131907 06/21/24 ACE PORTABLE SERVICES 1,500.48 O Regular131908 06/21/24 ALVAREZ IND INC CLEAN BLDG 370.00 O Regular131909 06/21/24 AMAZON CAPITAL SERVICES 1,669.08 O Regular131910 06/21/24 AT&T 8.86 O Regular
apadatecr2 City of Scotts Valley llambert 07/02/2024 09:54 Page 2 A/P Check Register Checks from 06/07/2024 to 07/02/2024
Check Check Vendor Name Net Check Check CheckNumber Date Amount Status Type131911 06/21/24 AT&T 2,719.17 O Regular131912 06/21/24 BRIGHTVIEW LANDSCAPE 4,166.50 O Regular131913 06/21/24 CALIFORNIA COAST UNIFORM CO 467.23 O Regular131914 06/21/24 CHAD PRICE 160.00 O Regular131915 06/21/24 CIRCLEUP EDUCATION 9,520.00 O Regular131916 06/21/24 COMPUTERSMITHS LLC 151.00 O Regular131917 06/21/24 CRIME SCENE CLEANERS,INC 130.00 O Regular131918 06/21/24 CRYSTAL SPRINGS WATER CO 5.00 O Regular131919 06/21/24 DEPARTMENT OF JUSTICE 32.00 O Regular131920 06/21/24 DYNAMIC PRESS 580.57 O Regular131921 06/21/24 ENTERPRISE FM TRUST 14,116.69 O Regular131922 06/21/24 ENVIRONMENTAL INNOVATIONS 15,365.61 O Regular131923 06/21/24 GODBE CORPORATION 28,850.00 O Regular131924 06/21/24 GOOD CITY COMPANY 4,130.00 O Regular131925 06/21/24 HANSON ASSOCIATES ASSET & 3,675.00 O Regular131926 06/21/24 Judy Pappas 325.00 O Regular131927 06/21/24 K & D LANDSCAPING, INC. 3,820.00 O Regular131928 06/21/24 LIEBERT CASSIDY WHITMORE 21,152.50 O Regular131929 06/21/24 LOGAN & POWELL, LLP 27,515.00 O Regular131930 06/21/24 MID VALLEY SUPPLY 886.04 O Payment Manager131931 06/21/24 MISSION UNIFORM SERVICE 131.26 O Regular131932 06/21/24 NATIONAL COMTEL NETWORK INC. 17.51 O Regular131933 06/21/24 ODELL ENGINEERING 13,372.00 O Regular131934 06/21/24 ONEILL SEA ODYSSEY 12,000.00 O Regular131935 06/21/24 PACIFIC GAS & ELECTRIC CO 65,446.37 O Regular131936 06/21/24 PHILLIP D NEUMAN 34,047.53 O Regular131937 06/21/24 PHOENIX GROUP 459.86 O Regular131938 06/21/24 ROBERT ORMONDE 569.10 O Regular131939 06/21/24 S.V. WATER DISTRICT - BULK 79.22 O Regular131940 06/21/24 SANTA CRUZ SENTINEL 217.60 O Regular131941 06/21/24 SCARBOROUGH LUMBER 490.02 O Regular131942 06/21/24 SCOTTS VALLEY SPRINKLER 65.83 O Regular131943 06/21/24 THE PIED PIPER INC. 155.50 O Payment Manager131944 06/21/24 THOMSON REUTERS-WEST 392.22 O Payment Manager131945 06/21/24 U.S. BANK CORPORATE 14,853.57 O Regular131946 06/21/24 URBAN FIELD STUDIO OAKLAND 7,655.00 O Regular131947 06/21/24 VISTA CENTER FOR THE BLIND 4,500.00 O Regular131948 06/21/24 WAGE WORKS 125.00 O Regular131949 06/21/24 WEX BANK 7,280.05 O Regular131950 06/28/24 A TOOL SHED, INC. 385.00 O Regular131951 06/28/24 ACCO ENGINEERED SYSTEMS 720.00 O Regular131952 06/28/24 AFLAC-FLEX ONE 411.86 O Regular131953 06/28/24 ALFA LAVAL INC. 33,310.75 O Regular131954 06/28/24 ALHAMBRA 406.87 O Regular131955 06/28/24 ALVAREZ IND INC CLEAN BLDG 256.00 O Regular
apadatecr2 City of Scotts Valley llambert 07/02/2024 09:54 Page 3 A/P Check Register Checks from 06/07/2024 to 07/02/2024
Check Check Vendor Name Net Check Check CheckNumber Date Amount Status Type131956 06/28/24 AMANDA LONG 48.60 O Regular131957 06/28/24 AMAZON CAPITAL SERVICES 209.84 O Regular131958 06/28/24 ANDERSON PACIFIC ENG INC. 14,903.66 O Regular131959 06/28/24 ART SOTO 169.32 O Regular131960 06/28/24 AT&T 150.62 O Regular131961 06/28/24 AT&T 286.21 O Regular131962 06/28/24 AT&T MOBILITY 1,464.44 O Regular131963 06/28/24 BAKER TILLY US, LLP 2,100.00 O Regular131964 06/28/24 BAY TREE, LLC 3,620.38 O Regular131965 06/28/24 BENJAMIN NOBLE 5,930.00 O Regular131966 06/28/24 BOWMAN & WILLIAMS 5,233.75 O Payment Manager131967 06/28/24 BRINKS AWARDS & SIGNS 67.73 O Regular 131968 06/28/24 BRYCE HR CONSULTING, INC. 570.00 O Regular131969 06/28/24 BUSINESS WITH PLEASURE 106.66 O Regular131970 06/28/24 CALED 500.00 O Regular131971 06/28/24 CALIFORNIA DEPARTMENT OF 34.84 O Regular 131972 06/28/24 Chi-Cha Russo 27.99 O Regular131973 06/28/24 CHRISP COMPANY 1,521.75 O Regular131974 06/28/24 COMCAST 697.58 O Regular131975 06/28/24 CRYSTAL SPRINGS WATER CO 63.00 O Regular131976 06/28/24 CSG CONSULTANTS, INC 19,605.00 O Regular131977 06/28/24 DARSHANA CROSKREY 163.89 O Regular131978 06/28/24 DAWN BANKS 105.00 O Regular131979 06/28/24 DEPARTMENT OF JUSTICE 96.00 O Regular131980 06/28/24 DU-ALL SAFETY, LLC 3,225.00 O Payment Manager131981 06/28/24 DUNCAN AUTO TECH 155.47 O Regular131982 06/28/24 DYNAMIC PRESS 80.12 O Regular131983 06/28/24 ENERGY SOLUTIONS PLUS LLC 2,800.00 O Regular131984 06/28/24 FIRST ALARM 444.09 O Regular131985 06/28/24 FOREVER FIREWOOD, INC. 50.00 O Regular131986 06/28/24 Glenwood-Scotts Valley HOA 860.00 O Regular131987 06/28/24 HERWIT ENGINEERING 705.00 O Regular131988 06/28/24 INTERWEST CONSULTING GROUP 2,783.75 O Regular 131989 06/28/24 Jeffrey D Smith DDS 194.00 O Regular131990 06/28/24 JOSE PEREZ 289.79 O Regular131991 06/28/24 K & D LANDSCAPING, INC. 1,274.32 O Regular131992 06/28/24 KIMLEY-HORN & ASSOCIATES INC 6,054.00 O Regular131993 06/28/24 LAFCO 7,659.59 O Regular131994 06/28/24 M-GROUP 15,487.50 O Regular131995 06/28/24 Margaret Schraft 40.00 O Regular131996 06/28/24 Marlene Flannery 470.01 O Regular131997 06/28/24 MARY LOUISE DEFALCO 50.00 O Regular131998 06/28/24 MEREDITH ROBERTS 906.00 O Regular131999 06/28/24 MID VALLEY SUPPLY 102.13 O Payment Manager132000 06/28/24 MISCOWATER 406.28 O Regular
apadatecr2 City of Scotts Valley llambert 07/02/2024 09:54 Page 4 A/P Check Register Checks from 06/07/2024 to 07/02/2024
Check Check Vendor Name Net Check Check CheckNumber Date Amount Status Type132001 06/28/24 MISSION COMMUNICATIONS, LLC 1,690.20 O Regular132002 06/28/24 MISSION UNIFORM SERVICE 486.12 O Payment Manager132003 06/28/24 MIWALL CORPORATION 323.98 O Payment Manager132004 06/28/24 MONTEREY BAY ANALYTICAL SVCS 146.00 O Regular132005 06/28/24 MONTEREY BAY SYSTEMS 347.54 O Regular132006 06/28/24 MONTEREY REGIONAL 4,282.32 O Payment Manager 132007 06/28/24 Music Now 395.00 O Regular132008 06/28/24 MUNICIPAL MAINTENANCE EQUIP 5,067.87 O Regular132009 06/28/24 NBS GOVERNMENT FINANCE GROUP 12,267.51 O Regular132010 06/28/24 NOREEN YOSHIDA DDS 135.00 O Regular132011 06/28/24 PALACE BUSINESS SOLUTIONS 500.27 O Regular132012 06/28/24 PASCALE DROZEK 300.00 O Regular132013 06/28/24 PETERSON POWER SYSTEMS, INC. 3,174.70 O Regular132014 06/28/24 PHILLIP D NEUMAN 12,657.84 O Regular132015 06/28/24 PIONEER AMERICAS INC. 5,169.73 O Regular132016 06/28/24 PITNEY BOWES GLOBAL 527.84 O Payment Manager 132017 06/28/24 Polly Caticci 400.00 O Regular132018 06/28/24 PRODESSE PROPERTY GROUP 3,523.52 O Regular132019 06/28/24 RANDALL KRUSEE 163.47 O Regular132020 06/28/24 REGIONAL GOVERNMENT SERVICES 5,956.92 O Regular132021 06/28/24 RIVERSIDE LIGHTING INC 37.95 O Regular132022 06/28/24 ROD MARKELL 1,974.00 O Regular132023 06/28/24 RODOLFO ONCHI 180.00 O Regular132024 06/28/24 ROSS RECREATION EQUIPMENT INC. 98.27 O Regular132025 06/28/24 S.G.S RECYCLING ENTERPRISES 4,000.00 O Regular132026 06/28/24 S.V. WATER DISTRICT 7,914.10 O Regular132027 06/28/24 SAN LORENZO VALLEY WATER DISTR 306.56 O Regular132028 06/28/24 SANTA CRUZ COUNTY CONFERENCE 54,330.85 O Regular132029 06/28/24 SANTA CRUZ FIRE EQUIPMENT 702.92 O Regular132030 06/28/24 SCARBOROUGH LUMBER 1,723.50 O Regular132031 06/28/24 SCOTTS VALLEY HOTEL LP 20,285.05 O Payment Manager132032 06/28/24 SCOTTS VALLEY SPRINKLER 243.59 O Regular132033 06/28/24 SOIL CONTROL LAB 816.00 O Regular132034 06/28/24 SOUTH BAY REGIONAL PUBLIC 300.00 O Regular132035 06/28/24 STEPHANIE HILL 536.50 O Regular132036 06/28/24 STERICYCLE INC 251.75 O Regular132037 06/28/24 SUPERIOR ALARM COMPANY 96.00 O Regular132038 06/28/24 SWEDBERG ELECTRIC INC. 520.00 O Regular132039 06/28/24 SYCAL ENGINEERING INC 3,750.00 O Regular132040 06/28/24 TAMARA CUCCHIARA-SITKA 25.00 O Regular132041 06/28/24 THE CARD SHARK INC 837.39 O Payment Manager132042 06/28/24 THE PIED PIPER INC. 237.00 O Payment Manager132043 06/28/24 TORO PETROLEUM CORP 5,247.89 O Regular132044 06/28/24 TYLER HEBARD 195.00 O Regular132045 06/28/24 U.S. BANCORP OFFICE 1,300.62 O Regular
apadatecr2 City of Scotts Valley llambert 07/02/2024 09:54 Page 5 A/P Check Register Checks from 06/07/2024 to 07/02/2024
Check Check Vendor Name Net Check Check CheckNumber Date Amount Status Type132046 06/28/24 USA BLUE BOOK 90.88 O Payment Manager132047 06/28/24 VERIZON WIRELESS 177.91 O Regular132048 06/28/24 WIZIX TECHNOLOGY GROUP, INC 877.10 O Payment Manager132049 06/28/24 YORK FRAMING 1,164.41 O Regularapadatecr2 City of Scotts Valley llambert 07/02/2024 09:54 Page 5 A/P Check Register Checks from 06/07/2024 to 07/02/2024
168 Checks total: 914,664.11
0 ACH total:0 EFTPS total:0 Wire transfer total:
15 Payment Manager total: 37,942.32
183 GRAND TOTALS 952,606.43
AGENDA ITEM 2.
DATE: 7/10/2024
City of Scotts Valley
CITY COUNCIL STAFF REPORT
DATE: 7/10/2024
TO: Honorable Mayor and City Council
FROM: Stephanie Hill, Administrative Services Director
APPROVED: Mali LaGoe, City Manager
SUBJECT: Approve Settlement Agreement with employees regarding payroll items
SUMMARY OF ISSUE
During the new payroll system implementation in 2023, the City discovered an overpayment and taxation issue with certain employees' system set-up. The City immediately rectified the issues within the new payroll system to prevent future occurrences. The City performed a detailed review of all payrolls, with additional assistance from a third-party, from 2020 through 2023. It was discovered that certain employees received an overpayment for special incentive pay. It was discovered that certain employee's pretax contributions were erroneously subject to taxation. Impacted employees have received amended wage and tax statements for the respective years and may have incurred costs associated with refiling of tax returns. The City desires to avoid the potential uncertainty, expense and delay of any potential litigation related to the overpayment and tax issue and seeks to settle potential claims, subject to approval by the City Council.
FISCAL IMPACT
Fiscal impact will vary based on individual expenses incurred. The settlement payouts are not expected to exceed $72,500. This will require a budget amendment at Mid-Year review by the General Fund.
STAFF RECOMMENDATION
Staff recommends the City Council authorize the City Manager to enter into settlement agreements with impacted employees, and to make any minor modifications to the agreements as needed subject to approval by the City Attorney, not to exceed the anticipated settlement payout cost of $72,500.
TABLE OF CONTENTS
1. Settlement Agreement #1
2. Settlement Agreement #2
3. Settlement Agreement #3
SETTLEMENT AGREEMENT AND RELEASE OF CLAIMS
This Settlement Agreement and General Release (“Agreement”) is made and entered into by and between the City of Scotts Valley (“City”) and ____________________ (“Employee”) on this ____ day of July, 2024. City and Employee shall sometimes be individually referred to herein as a “Party” and collectively as “the Parties” with reference to the following facts:
RECITALS
WHEREAS, Employee is or was employed by the City; and
WHEREAS, as an employee, Employee is or was entitled to retirement benefits through the California Public Employees Retirement System (“CalPERS”); and WHEREAS, in 2023, it was discovered that the City erroneously paid salary and/or special compensation to Employee in excess of its contractual obligations, which resulted in excess compensation being reported to CalPERS and therefore, excess pension contribution amounts paid to CalPERS (the “Overpayment”); and WHEREAS, it was discovered that the Employee CalPERS contributions were not classified as pretax contributions, and erroneously subject to taxation (the “Tax-issue”); and
WHEREAS, the City notified Employee of the Overpayment and Tax-issue; and WHEREAS, due to the error, Employee has received an amended tax return of years Employee was impacted as permitted by law and may have incurred costs associated thereto; and
WHEREAS, the City is entitled to seek repayment from Employee for the Overpayment; and
WHEREAS, the City is required to re-report the corrected allowable pensionable compensation payments to Employee to CalPERS; and
WHEREAS, the Parties desire to avoid the potential uncertainty, expense and delay of any potential litigation related to the Overpayment and Tax-issue and have therefore, based upon their negotiations, agreed to a settlement of the Parties’ potential claims, subject to approval by the City Council; and
WHEREAS, the Parties agree and understand that this settlement is conditional and will become null and void unless and until it is approved by Employee and the City Council.
NOW THEREFORE, in consideration for the mutual promises and undertakings of the Parties as set forth below, the Parties hereby enter into this Agreement and agree as follows:
1. Recitals. The recitals set forth in this Agreement are true and correct and are hereby fully incorporated by reference into this Agreement. This Agreement affects potential claims and demands which are disputed, and by executing this Agreement, no Party admits or concedes any of the claims, defenses, or allegations which were raised or could be raised by any other Party or any third party. Each Party expressly denies liability for any and all claims or demands. The Parties acknowledge that this is a compromise settlement of a disputed claim or claims. Moreover, neither this Agreement, nor any part of this Agreement, shall be construed to be nor shall be admissible in any proceeding as evidence of or any admission by any Party of any violation of law or any wrongdoing whatsoever. This document may be introduced in a proceeding to enforce the terms of the Agreement.
2. Settlement Terms. In settlement of the “claims” the Parties may have against each other, the City has agreed to not seek repayment of the Overpayment paid to Employee and to pay Employee _______ ($200 PER OVERPAYMENT AND TAX-ISSUE YEARS AND up to $300 per year for ACTUAL EXPENSES TO REFILE) and Employee agrees to waive any claims he/she may have against the City and allow the City to retain any payments received from CalPERS due to the re-reporting. The City shall pay Employee $200 per tax-issue year upon execution of this Agreement. The reimbursement for actual expenses shall be paid within thirty (30) days of the City’s receipt of proof that Employee refiled his/her taxes and the costs associated with such refiling. Any proof of expenses shall be filed no later than April 30, 2025.
3. Release of Claims. In consideration of the promises set forth herein, each of the Parties, on behalf of themselves and their officers, directors, agents, employees, affiliates, and assigns, hereby releases and discharges the other party, its past, present and future officers, agents, employees, administrators and assigns, from and relinquishes any and all past, present or future claims, demands, obligations, liabilities or causes of action of any nature whatsoever arising from or in any way related to the Overpayment or Tax-issue. Said release shall include, but shall not be limited to, claims, demands, obligations, liabilities or causes of action for compensatory damages, punitive damages, interest, diminution in value, costs, losses, expenses, compensation and attorneys’ fees whether based on tort, MOU, contract, equity, statute, breach of fiduciary duty, or other theories of recovery which the Parties have or which may later accrue to or be acquired by the Parties. Each of the Parties hereto further covenants to the other that it shall not sue, nor by its acts or omissions cause to be sued, the other party with respect to the subject matter of this settlement, including without limitation the subject matter of the Overpayment and Tax-issue.
4. Release of Unknown Claims. In consideration for the payments described in Section 2 of this Agreement, Employee hereby waives any and all rights or benefits that it may have related to the Overpayment and Tax-issue under section 1542 of the Civil Code of the State of California, which provides:
A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH
THE CREDITOR OR RELEASING PARTY DOES NOT KNOW OR
SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF
EXECUTING THE RELEASE AND THAT, IF KNOWN BY HIM OR HER
WOULD HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT
WITH THE DEBTOR OR RELEASED PARTY.
Employee acknowledges that he/she understands the effect of this waiver pursuant to Civil Code section 1542.
5. Jurisdiction. This Agreement is executed and delivered in the State of California and the rights and obligations of the Parties hereunder shall be construed and enforced in accordance with the laws of the State of California.
6. Entire Agreement. This Agreement contains the entire agreement of the Parties regarding the subject matter of this agreement and shall constitute the final understanding between the Parties hereto. All prior negotiations made or which have occurred prior to the date of this Agreement are merged into this Agreement.
7. No Additional Representations. Except for the terms of this Agreement, Employee and the City have not relied upon any statement or representation, written or oral, made by any party, or any of their respective agents, attorneys or any other person, regarding any matter including, but not limited to, the federal or state income tax consequences of the Agreement to any party. The Parties expressly acknowledge and agree that they have relied solely upon the advice of their own attorneys and/or accountants as to the tax and benefit consequences of the Agreement.
8. Warranty of Non-Assignment. The Parties warrant that they have not assigned any of the claims or portions of the claims that are the subject of this Agreement.
9. Binding Agreement. The Agreement and all documents referred to herein, shall bind and inure to the benefit of each of the Parties hereto and his or her spouse, domestic partner, children, heirs, estates, administrators, representatives, executors, attorneys’ successors and assigns. Except as expressly provided herein, this Agreement is not for the benefit of any person not a party hereto or any person or entity not specifically identified as a beneficiary herein or specifically identified herein as a person or entity released hereby. The Agreement is not intended to constitute a third party beneficiary contract.
10.Authority to Execute. Each Party hereto warrants to the other Parties that he, she or it has the full power and authority to execute, deliver and perform under this Agreement and all documents referred to herein, and that any needed consent or approval from any other person has been obtained.
11.Duty to Act in Good Faith. The Parties shall act in good faith and use their reasonable good faith efforts after the execution of this Agreement to ensure that their respective obligations hereunder are fully and punctually performed. The Parties shall promptly perform any further acts and execute and deliver any other documents or instruments that may be reasonably necessary to carry out the provisions of this Agreement. Time is of the essence in this Agreement.
12.Interpretation and Construction. Any ambiguities or uncertainties herein shall be
equally and fairly interpreted and construed without reference to the identity of the Party or Parties preparing this document or the documents referred to herein, on the understanding that the Parties participated equally in the negotiation and preparation of the Agreement and the documents referred to herein, or have had equal opportunity to do so. The headings used herein are for reference only and shall not affect the construction of this Agreement.
13.Governing Law and Venue. The settlement, this Agreement, and the documents referred to herein, shall be interpreted in accordance with the laws of the State of California, and if necessary, federal law. To the extent that any Party brings an action to enforce the terms of this Agreement, such action shall be filed and prosecuted in the Santa Cruz Superior Court and/or the United States District Court for the Northern District of California, to the extent of that court’s jurisdiction.
14.Mutual Waiver of Attorney Fees and Costs. Subject to the requirements of section 2(e) of this Agreement, the Parties will bear their own costs of suit, consultant fees, expert fees, attorney fees, and any other costs and expenses of every kind or character, arising out of or relating in any way to the Overpayment and Tax-issue or this Agreement, including but not limited claims released by this Agreement.
15.Breach, Waiver and Amendment. No breach of this Agreement or of any provision herein can be waived except by an express written waiver executed by the Party waiving such breach. Waiver of any one breach shall not be deemed a waiver of any other breach of the same or other provisions of this Agreement. The Agreement may be amended, altered, modified or otherwise changed in any respect or particular only by a writing duly executed by the Parties hereto and their authorized representatives.
16.Execution. All executed copies of this Agreement, and photocopies thereof (including fax and/or emailed copies of the signature pages), shall have the same force and effect and shall be as legally binding and enforceable as the original.
17.Agreement Does Not Establish Precedent. The Parties agree that the terms of this Agreement are binding and will not establish any precedent, nor will this Agreement be used as a basis by the Parties or anyone else to seek or justify similar terms in any subsequent or similar case.
18. Consultation with Counsel. The Parties affirm that, prior to execution of this Agreement, they have had the opportunity to consult with their respective legal counsel/representative concerning the terms and conditions set forth herein, and that they understand the advice provided to them.
19.Effective Date. This Agreement shall only become effective upon execution by all of the Parties. The effective date of the Agreement shall be the latest date appearing below after all Parties have executed the Agreement.
PLEASE READ CAREFULLY. THIS SETTLEMENT AGREEMENT AND RELEASE INCLUDES A RELEASE OF CLAIMS BY EMPLOYEE.
IN WITNESS WHEREOF, the Parties hereto have executed this Settlement Agreement and Release of Claims.
EMPLOYEE: CITY:
_______________________ City of Scotts Valley
_______________________ _________________________
Mali LaGoe, City Manager
SETTLEMENT AGREEMENT AND RELEASE OF CLAIMS
This Settlement Agreement and General Release (“Agreement”) is made and entered into by and between the City of Scotts Valley (“City”) and ____________________ (“Employee”) on this ______ day of July, 2024. City and Employee shall sometimes be individually referred to herein as a “Party” and collectively as “the Parties” with reference to the following facts:
RECITALS
WHEREAS, Employee is or was employed by the City; and
WHEREAS, as an employee, Employee is or was entitled to retirement benefits through the California Public Employees Retirement System (“CalPERS”); and WHEREAS, in 2023, it was discovered that the City erroneously paid salary and/or special compensation to Employee in excess of its contractual obligations, which resulted in excess compensation being reported to CalPERS and therefore, excess pension contribution amounts paid to CalPERS (the “Overpayment”); and WHEREAS, the City notified Employee of the Overpayment; and WHEREAS, the City is entitled to seek repayment from Employee for the Overpayment; and
WHEREAS, the City is required to re-report the corrected allowable pensionable compensation payments to Employee to CalPERS; and
WHEREAS, the Parties desire to avoid the potential uncertainty, expense and delay of any potential litigation related to the Overpayment and have therefore, based upon their negotiations, agreed to a settlement of the Parties’ potential claims, subject to approval by the City Council; and
WHEREAS, the Parties agree and understand that this settlement is conditional and will become null and void unless and until it is approved by Employee and the City Council.
NOW, THEREFORE, in consideration for the mutual promises and undertakings of the Parties as set forth below, the Parties hereby enter into this Agreement and agree as follows:
1. Recitals. The recitals set forth in this Agreement are true and correct and are hereby fully incorporated by reference into this Agreement. This Agreement affects potential claims and demands which are disputed, and by executing this Agreement, no Party admits or concedes any of the claims, defenses, or allegations which were raised or could be raised by any other Party or any third party. Each Party expressly denies liability for any and all claims or demands. The Parties acknowledge that this is a compromise settlement of a disputed claim or claims. Moreover, neither this Agreement, nor any part of this Agreement, shall be construed to be nor shall be admissible in any proceeding as
evidence of or any admission by any Party of any violation of law or any wrongdoing whatsoever. This document may be introduced in a proceeding to enforce the terms of the Agreement.
2. Settlement Terms. In settlement of the “claims” the Parties may have against each other, the City has agreed to not seek repayment of the Overpayment paid to Employee and the Employee agrees to allow the City to retain any payments received from CalPERS due to the re-reporting and to waive any claims he/she may have against the City.
3. Release of Claims. In consideration of the promises set forth herein, each of the Parties, on behalf of themselves and their officers, directors, agents, employees, affiliates, and assigns, hereby releases and discharges the other party, its past, present and future officers, agents, employees, administrators and assigns, from and relinquishes any and all past, present or future claims, demands, obligations, liabilities or causes of action of any nature whatsoever arising from or in any way related to the Overpayment.
Said release shall include, but shall not be limited to, claims, demands, obligations, liabilities or causes of action for compensatory damages, punitive damages, interest, diminution in value, costs, losses, expenses, compensation and attorneys’ fees whether based on tort, MOU, contract, equity, statute, breach of fiduciary duty, or other theories of recovery which the Parties have or which may later accrue to or be acquired by the Parties. Each of the Parties hereto further covenants to the other that it shall not sue, nor by its acts or omissions cause to be sued, the other party with respect to the subject matter of this settlement, including without limitation the subject matter of the Overpayment.
4. Release of Unknown Claims. In consideration for the payments described in Section 2 of this Agreement, Employee hereby waives any and all rights or benefits that it may have related to the Overpayment under section 1542 of the Civil Code of the State of California, which provides:
A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH
THE CREDITOR OR RELEASING PARTY DOES NOT KNOW OR
SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF
EXECUTING THE RELEASE AND THAT, IF KNOWN BY HIM OR HER
WOULD HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT
WITH THE DEBTOR OR RELEASED PARTY.
Employee acknowledges that he/she understands the effect of this waiver pursuant to Civil Code section 1542.
5. Jurisdiction. This Agreement is executed and delivered in the State of California and the rights and obligations of the Parties hereunder shall be construed and enforced in accordance with the laws of the State of California.
6. Entire Agreement. This Agreement contains the entire agreement of the Parties regarding the subject matter of this agreement and shall constitute the final understanding between the Parties hereto. All prior negotiations made or which have occurred prior to the date of this Agreement are merged into this Agreement.
7. No Additional Representations. Except for the terms of this Agreement, Employee
and the City have not relied upon any statement or representation, written or oral, made by any party, or any of their respective agents, attorneys or any other person, regarding any matter including, but not limited to, the federal or state income tax consequences of the Agreement to any party. The Parties expressly acknowledge and agree that they have relied solely upon the advice of their own attorneys and/or accountants as to the tax and benefit consequences of the Agreement.
8. Warranty of Non-Assignment. The Parties warrant that they have not assigned any of the claims or portions of the claims that are the subject of this Agreement.
9. Binding Agreement. The Agreement and all documents referred to herein, shall bind and inure to the benefit of each of the Parties hereto and his or her spouse, domestic partner, children, heirs, estates, administrators, representatives, executors, attorneys’ successors and assigns. Except as expressly provided herein, this Agreement is not for the benefit of any person not a party hereto or any person or entity not specifically identified as a beneficiary herein or specifically identified herein as a person or entity released hereby. The Agreement is not intended to constitute a third party beneficiary contract.
10.Authority to Execute. Each Party hereto warrants to the other Parties that he, she or it has the full power and authority to execute, deliver and perform under this Agreement and all documents referred to herein, and that any needed consent or approval from any other person has been obtained.
11.Duty to Act in Good Faith. The Parties shall act in good faith and use their reasonable good faith efforts after the execution of this Agreement to ensure that their respective obligations hereunder are fully and punctually performed. The Parties shall promptly perform any further acts and execute and deliver any other documents or instruments that may be reasonably necessary to carry out the provisions of this Agreement. Time is of the essence in this Agreement.
12.Interpretation and Construction. Any ambiguities or uncertainties herein shall be equally and fairly interpreted and construed without reference to the identity of the Party or Parties preparing this document or the documents referred to herein, on the understanding that the Parties participated equally in the negotiation and preparation of the Agreement and the documents referred to herein, or have had equal opportunity to do so. The headings used herein are for reference only and shall not affect the construction of this Agreement.
13.Governing Law and Venue. The settlement, this Agreement, and the documents referred to herein, shall be interpreted in accordance with the laws of the State of California, and if necessary, federal law. To the extent that any Party brings an action to enforce the terms of this Agreement, such action shall be filed and prosecuted in the Santa Cruz Superior Court and/or the United States District Court for the Northern District of California, to the extent of that court’s jurisdiction.
14.Mutual Waiver of Attorney Fees and Costs. Subject to the requirements of section
2(e) of this Agreement, the Parties will bear their own costs of suit, consultant fees, expert fees, attorney fees, and any other costs and expenses of every kind or character, arising out of or relating in any way to the Overpayment or this Agreement, including but not limited claims released by this Agreement.
15.Breach, Waiver and Amendment. No breach of this Agreement or of any provision herein can be waived except by an express written waiver executed by the Party waiving such breach. Waiver of any one breach shall not be deemed a waiver of any other breach of the same or other provisions of this Agreement. The Agreement may be amended, altered, modified or otherwise changed in any respect or particular only by a writing duly executed by the Parties hereto and their authorized representatives.
16.Execution. All executed copies of this Agreement, and photocopies thereof (including fax and/or emailed copies of the signature pages), shall have the same force and effect and shall be as legally binding and enforceable as the original.
17.Agreement Does Not Establish Precedent. The Parties agree that the terms of this Agreement are binding and will not establish any precedent, nor will this Agreement be used as a basis by the Parties or anyone else to seek or justify similar terms in any subsequent or similar case.
18. Consultation with Counsel. The Parties affirm that, prior to execution of this Agreement, they have had the opportunity to consult with their respective legal counsel/representative concerning the terms and conditions set forth herein, and that they understand the advice provided to them.
19.Effective Date. This Agreement shall only become effective upon execution by all of the Parties. The effective date of the Agreement shall be the latest date appearing below after all Parties have executed the Agreement.
PLEASE READ CAREFULLY. THIS SETTLEMENT AGREEMENT AND RELEASE INCLUDES A RELEASE OF CLAIMS BY EMPLOYEE.
IN WITNESS WHEREOF, the Parties hereto have executed this Settlement Agreement and Release of Claims.
EMPLOYEE: CITY:
_______________________ City of Scotts Valley
_______________________ _________________________
_______________________ Mali LaGoe, City Manager
SETTLEMENT AGREEMENT AND RELEASE OF CLAIMS
This Settlement Agreement and General Release (“Agreement”) is made and entered into by and between the City of Scotts Valley (“City”) and ____________________ (“Employee”) on this _____ day of July, 2024. City and Employee shall sometimes be individually referred to herein as a “Party” and collectively as “the Parties” with reference to the following facts:
RECITALS
WHEREAS, Employee is or was employed by the City; and
WHEREAS, in 2023, it was discovered that the Employee CalPERS contributions were not classified as pretax contributions, and erroneously subject to taxation (the “Taxissue”); and WHEREAS, the City notified Employee of the Tax-issue; and WHEREAS, due to the error, Employee has received amended tax return of years Employee was impacted as permitted by law and may have incurred costs associated thereto; and
WHEREAS, the Parties desire to avoid the potential uncertainty, expense and delay of any potential litigation related to the Tax-issue and have therefore, based upon their negotiations, agreed to a settlement of the Parties’ potential claims, subject to approval by the City Council; and
WHEREAS, the Parties agree and understand that this settlement is conditional and will become null and void unless and until it is approved by Employee and the City Council.
NOW THEREFORE, in consideration for the mutual promises and undertakings of the Parties as set forth below, the Parties hereby enter into this Agreement and agree as follows:
1. Recitals. The recitals set forth in this Agreement are true and correct and are hereby fully incorporated by reference into this Agreement. This Agreement affects potential claims and demands which are disputed, and by executing this Agreement, no Party admits or concedes any of the claims, defenses, or allegations which were raised or could be raised by any other Party or any third party. Each Party expressly denies liability for any and all claims or demands. The Parties acknowledge that this is a compromise settlement of a disputed claim or claims. Moreover, neither this Agreement, nor any part of this Agreement, shall be construed to be nor shall be admissible in any proceeding as evidence of or any admission by any Party of any violation of law or any wrongdoing whatsoever. This document may be introduced in a proceeding to enforce the terms of the Agreement.
2. Settlement Terms. In settlement of the “claims” the Parties may have against each
other, the City has agreed to pay Employee _______ ($200 PER TAX-ISSUE YEARS AND up to $300 per year for ACTUAL EXPENSES TO REFILE) and the Employee agrees to waive any claims he/she may have against the City for the Tax-issue. The City shall pay Employee $200 per tax-issue year upon execution of this Agreement. The reimbursement for actual expenses shall be paid within thirty (30) days of the City’s receipt of proof that Employee refiled his/her taxes and the costs associated with such refiling. Any proof of expenses shall be filed no later than April 30, 2025.
3. Release of Claims. In consideration of the promises set forth herein, each of the Parties, on behalf of themselves and their officers, directors, agents, employees, affiliates, and assigns, hereby releases and discharges the other party, its past, present and future officers, agents, employees, administrators and assigns, from and relinquishes any and all past, present or future claims, demands, obligations, liabilities or causes of action of any nature whatsoever arising from or in any way related to the Tax-issue. Said release shall include, but shall not be limited to, claims, demands, obligations, liabilities or causes of action for compensatory damages, punitive damages, interest, diminution in value, costs, losses, expenses, compensation and attorneys’ fees whether based on tort, MOU, contract, equity, statute, breach of fiduciary duty, or other theories of recovery which the Parties have or which may later accrue to or be acquired by the Parties. Each of the Parties hereto further covenants to the other that it shall not sue, nor by its acts or omissions cause to be sued, the other party with respect to the subject matter of this settlement, including without limitation the subject matter of the Tax-issue.
4. Release of Unknown Claims. In consideration for the payments described in Section 2 of this Agreement, Employee hereby waives any and all rights or benefits that it may have related to the Tax-issue under section 1542 of the Civil Code of the State of California, which provides:
A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH
THE CREDITOR OR RELEASING PARTY DOES NOT KNOW OR
SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF
EXECUTING THE RELEASE AND THAT, IF KNOWN BY HIM OR HER
WOULD HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT
WITH THE DEBTOR OR RELEASED PARTY.
Employee acknowledges that he/she understands the effect of this waiver pursuant to Civil Code section 1542.
5. Jurisdiction. This Agreement is executed and delivered in the State of California and the rights and obligations of the Parties hereunder shall be construed and enforced in accordance with the laws of the State of California.
6. Entire Agreement. This Agreement contains the entire agreement of the Parties regarding the subject matter of this agreement and shall constitute the final understanding between the Parties hereto. All prior negotiations made or which have occurred prior to the date of this Agreement are merged into this Agreement.
7. No Additional Representations. Except for the terms of this Agreement, Employee and the City have not relied upon any statement or representation, written or oral, made
by any party, or any of their respective agents, attorneys or any other person, regarding any matter including, but not limited to, the federal or state income tax consequences of the Agreement to any party. The Parties expressly acknowledge and agree that they have relied solely upon the advice of their own attorneys and/or accountants as to the tax and benefit consequences of the Agreement.
8. Warranty of Non-Assignment. The Parties warrant that they have not assigned any of the claims or portions of the claims that are the subject of this Agreement.
9. Binding Agreement. The Agreement and all documents referred to herein, shall bind and inure to the benefit of each of the Parties hereto and his or her spouse, domestic partner, children, heirs, estates, administrators, representatives, executors, attorneys’ successors and assigns. Except as expressly provided herein, this Agreement is not for the benefit of any person not a party hereto or any person or entity not specifically identified as a beneficiary herein or specifically identified herein as a person or entity released hereby. The Agreement is not intended to constitute a third party beneficiary contract.
10.Authority to Execute. Each Party hereto warrants to the other Parties that he, she or it has the full power and authority to execute, deliver and perform under this Agreement and all documents referred to herein, and that any needed consent or approval from any other person has been obtained.
11.Duty to Act in Good Faith. The Parties shall act in good faith and use their reasonable good faith efforts after the execution of this Agreement to ensure that their respective obligations hereunder are fully and punctually performed. The Parties shall promptly perform any further acts and execute and deliver any other documents or instruments that may be reasonably necessary to carry out the provisions of this Agreement. Time is of the essence in this Agreement.
12.Interpretation and Construction. Any ambiguities or uncertainties herein shall be equally and fairly interpreted and construed without reference to the identity of the Party or Parties preparing this document or the documents referred to herein, on the understanding that the Parties participated equally in the negotiation and preparation of the Agreement and the documents referred to herein, or have had equal opportunity to do so. The headings used herein are for reference only and shall not affect the construction of this Agreement.
13.Governing Law and Venue. The settlement, this Agreement, and the documents referred to herein, shall be interpreted in accordance with the laws of the State of California, and if necessary, federal law. To the extent that any Party brings an action to enforce the terms of this Agreement, such action shall be filed and prosecuted in the Santa Cruz Superior Court and/or the United States District Court for the Northern District of California, to the extent of that court’s jurisdiction.
14.Mutual Waiver of Attorney Fees and Costs. Subject to the requirements of section 2(e) of this Agreement, the Parties will bear their own costs of suit, consultant fees, expert
fees, attorney fees, and any other costs and expenses of every kind or character, arising out of or relating in any way to the Tax-issue or this Agreement, including but not limited claims released by this Agreement.
15.Breach, Waiver and Amendment. No breach of this Agreement or of any provision herein can be waived except by an express written waiver executed by the Party waiving such breach. Waiver of any one breach shall not be deemed a waiver of any other breach of the same or other provisions of this Agreement. The Agreement may be amended, altered, modified or otherwise changed in any respect or particular only by a writing duly executed by the Parties hereto and their authorized representatives.
16.Execution. All executed copies of this Agreement, and photocopies thereof (including fax and/or emailed copies of the signature pages), shall have the same force and effect and shall be as legally binding and enforceable as the original.
17.Agreement Does Not Establish Precedent. The Parties agree that the terms of this Agreement are binding and will not establish any precedent, nor will this Agreement be used as a basis by the Parties or anyone else to seek or justify similar terms in any subsequent or similar case.
18. Consultation with Counsel. The Parties affirm that, prior to execution of this Agreement, they have had the opportunity to consult with their respective legal counsel/representative concerning the terms and conditions set forth herein, and they they understand the advice provided to them.
19.Effective Date. This Agreement shall only become effective upon execution by all of the Parties. The effective date of the Agreement shall be the latest date appearing below after all Parties have executed the Agreement.
PLEASE READ CAREFULLY. THIS SETTLEMENT AGREEMENT AND RELEASE INCLUDES A RELEASE OF CLAIMS BY EMPLOYEE.
IN WITNESS WHEREOF, the Parties hereto have executed this Settlement Agreement and Release of Claims.
EMPLOYEE: CITY:
_______________________ City of Scotts Valley
_______________________ _________________________
_______________________ Mali LaGoe, City Manager
AGENDA ITEM 3.
DATE: 7/10/2024
City of Scotts Valley
CITY COUNCIL STAFF REPORT
DATE: 7/10/2024
TO: Honorable Mayor and City Council
FROM: Kirsten Powell, City Attorney
APPROVED: Mali LaGoe, City Manager
SUBJECT: Approve National Opioid Settlement participation
SUMMARY OF ISSUE
Background
On April 5, 2023, the City Council voted to participate in a settlement of National Opioid Settlements with CVS, Walgreens, Walmart, Teva and Allergen. Additionally, the City agreed to assign opioid settlement funds to the County of Santa Cruz as the more appropriate agency to provide programs to address the opioid crisis which programs were a requirement of the settlement. Recently, an additional retailer - Kroger - has agreed to pay approximately $1.2 billion dollars to states and local entities over the next eleven years. In order to receive a portion of these funds, local entities need to release all claims against Kroger and agree to use the funds on opioid remediation. Council authorization is requested for the County to release all claims against Kroger in order to participate in the settlement. Any funds received will be covered by the assignment agreement with the County of Santa Cruz.
Discussion
The national opioids crisis has been well-documented over the last decade as communities have struggled to address its devastating impacts. The crisis has spurned litigation against opioid manufacturers and distributors alleging that they falsely marketed and unlawfully promoted and dispensed opioids in ways that the industry knew to be dangerous, addictive, and prone to abuse. Recently, a new $1.2 billion settlement was announced with Kroger, one of the opioid retailers that was sued by many of the government plaintiffs. Under this settlement, the State of California will receive a maximum amount of roughly $122 million over the next eleven years. These funds will be split between the State and local subdivisions who participate in the settlement, based on the same metrics that were used to split the monies in the earlier settlement (15% to the State, 70% to the Abatement Fund, and 15% to Litigating Local Entities). The City is eligible to participate in the Kroger settlement and receive funds if it agrees to release all claims against Kroger and spend any funds it receives the same way it is spending other opioid settlement funds. Because the total amount of settlement funds depends on the amount of local subdivision participation and other metrics identified in the settlement documents, it is difficult to determine with precision how much money the City will see from this settlement. However, local jurisdictions are advocating for the State to use the same allocation percentages used in the previous settlements, and if this occurs the City is eligible to receive a maximum amount of roughly $10,825 from this settlement over the next eleven years. Staff
recommends that the City Council authorize the City to join this settlement and release any opioid-related claims it could otherwise file against Kroger in exchange for these funds. In addition, the funds received will be transferred to the County in accordance with the previously executed assignment agreement. The County will join the funds with the other opioid remediation funds it is currently expending. Similar to the other national opioid settlements, the documents for the Kroger settlement constitute hundreds of pages and are extremely complicated. The documents are available for review at www.nationalopioidsettlement.com by drilling down from the Kroger button that appears at the top of the home page. For purposes of efficiency, and similar to the procedure used with regard to the previous settlements, staff requests that the City authorize City Attorney Kirsten Powell to sign all documents required to effectuate the City's release of claims and inclusion in the Kroger settlement.
FISCAL IMPACT
By joining the Kroger settlement, the City is eligible to receive a rough maximum amount of $10,825 over the next eleven years to be assigned to the County and devoted to opioid crisis remediation efforts.
STAFF RECOMMENDATION
1. Authorize the City to participate in the National Opioid Settlement with The Kroger Company ("Kroger") and release all claims against Kroger in exchange for a portion of the settlement funds that will flow to the City through the State of California to be used ; and
2. Authorize the City Attorney to sign all relevant documents related to joining the settlement and executing the release of claims.
TABLE OF CONTENTS
None
AGENDA ITEM 1.
DATE: 7/10/2024
City of Scotts Valley
CITY COUNCIL STAFF REPORT
DATE: 7/10/2024
TO: Honorable Mayor and City Council
FROM: Stephanie Hill, Administrative Services Director
APPROVED: Mali LaGoe, City Manager
SUBJECT: Introduction of Ordinance No. 73.3 amending Scotts Valley Municipal Code Section 2.24.020 regarding City Council Member benefits
SUMMARY OF ISSUE
At the City Council Workshop on February 28th - 29th, 2024, Council and staff discussed the cost of Council Members' benefits in regard to Scotts Valley Municipal Code Section 2.24.020.
The City has provided Council Members with medical and health insurance coverage at the same rate as provided for City department heads. Depending on enrollment levels, this could be upwards of $200,000 per year. Council discussed the need for budget prudence and agreed to phase out Council member medical and health benefits. The proposed ordinance amendment will make it so that any City Council Member elected after November 1, 2024 will still have medical and health benefits available to them, but they will bear the full cost of the premiums.
FISCAL IMPACT
Fiscal impact could be annual budget savings of up to $200,000 depending on enrollment.
These changes have already been encompassed in the current Fiscal Year 2024-25 Budget.
STAFF RECOMMENDATION
Introduce Ordinance No. 73.3 amending the Scotts Valley Municipal Code 2.24.020 for Council Members' medical and health insurance coverage.
TABLE OF CONTENTS
1. Ordinance No. 73.3 Council Member Benefits
ORDINANCE NO. 73.3
ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SCOTTS VALLEY AMENDING TITLE 2, CHAPTER 2.24, SECTION 2.24.020 OF THE SCOTTS VALLEY
MUNICIPAL CODE REGARDING CITY COUNCIL MEMBER BENEFITS
WHEREAS, the City of Scotts Valley recognizes the commitment of time and resources it takes to serve as a City Council Member; and WHEREAS, the City has provided medical and health insurance coverage to City Council Members; and
WHEREAS, the City desires to still provide such coverage to City Council Members but with the costs of the coverage to be paid by the City Council Members.
NOW, THEREFORE, THE COUNCIL OF THE CITY OF SCOTTS VALLEY DOES ORDAIN AS FOLLOWS:
SECTION 1. Section 2.24.020 of Chapter 2.24 of Title 2 is hereby amended to read as follows:
“2.24.020 - Salary.
Pursuant to the provisions of Section 36516 of the California Government Code (as the same may now exist or hereafter be amended), each member of the City Council shall receive the maximum monthly salary of four hundred eighty-eight dollars and sixty-seven cents. The City shall also provide medical and health insurance coverage, and pay the cost thereof, for each Council Member and his or her dependents to the same extent, the same is now or hereafter provided and paid for by the City department heads. For any City Council Member elected after November 1, 2024, the City shall make medical and health insurance coverage available for each Council Member and his or her dependents to the same extent with the full cost of the premium to be paid by participating Council Member. Payment for such medical and health insurance coverage shall be made in accordance with policies established by the City.” SECTION 2. SEVERABILITY. If any section, subsection, sentence, clause, phrase or portion of this Ordinance is for any reason held invalid or unconstitutional by any court of competent jurisdiction such portion shall be deemed a separate, distinct and independent provision of such Ordinance and shall not affect the validity of the remaining portions thereof.
SECTION 3. REPEALS CONFLICTING ORDINANCES. All other ordinances of the City of Scotts Valley or provisions of the Scotts Valley Municipal Code which are in conflict with this Ordinance are hereby repealed to the extent of such conflict.
SECTION 4. CEQA COMPLIANCE. The City Council finds and determines that the enactment of this Ordinance is not a “project” as that term is used in the California
Environmental Quality Act (“CEQA;” Cal. Pub. Resources Code Section 21000 et seq.) or the State CEQA Guidelines (Cal. Code of Regs., Title 14, Section 15000 et seq.).
Therefore, no environmental assessment is required or necessary.
SECTION 5. EFFECTIVE DATE. The above and foregoing ordinance was introduced for a first reading on July 10, 2024, and passed and adopted on August 7, 2024, at a duly held meeting of the City Council of the City of Scotts Valley by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
APPROVED:
____________________________
Randy Johnson, Mayor
ATTEST:
_______________________________
Cathie Simonovich, City Clerk
APPROVED
AS TO FORM:
_____________________________
Kirsten Powell, City Attorney