Z. City Management Transitions —Within forty-five (45) days of the appointment of a permanent City Manager, the City shall re-publish, at a public meeting of the City Council, its Citywide Financial Policies, with any amendments made to the Policies as appropriate.
AA. Council and Employee Payments — Employee and Council payroll compensation shall be paid following the normal published payroll cycle. Reimbursements and stipends shall follow the standard accounts payable payment cycle. Emergency and Special Handling payments shall be highlighted on the Warrant Register to ensure transparency. Emergency and Special Handling payments shall require the responsible Department Head and City Manager approvals prior to payment processing.
Section 3. The City Clerk shall certify to the adoption of this Resolution.
PASSED, APPROVED AND ADOPTED this 12th day of May 2020. it) 004 —
Gloria Olmos, Mayor
ATTEST:
Rose Jua ; , City Clerk
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES SS:
CITY OF SOUTH EL MONTE
I, Rose Juarez, City Clerk of the City of South El Monte, do hereby certify that the foregoing Resolution, being Resolution No. 20-44 was passed and approved by the City Council of the City of South El Monte, at a regular meeting of said Council held on the 12th day of May, 2020 and that said Resolution was adopted by the following vote:
AYES: Acosta, Angel, Delgado, Retamoza, ( Mayor) Olmos
NOES: None
ABSENT: None
ABSTAIN: None
Rose J z, City Clerk
§ 2.00.140 RESERVE FUND TRANSPARENCY.
A. Alternative use resolution. The city shall not use reserve funds to balance the general fund budget, or for a project or operations unrelated to the purpose of the reserve funds account, unless the City Council adopts a resolution authorizing such alternative use.
B. Statement of intent regarding repayment. A resolution authorizing an alternative use of reserve funds shall state whether the City Council does or does not intend to replenish the reserve funds account with the amount of the reserve funds being used for the alternative purpose.
C. Repayment plan approval. If City Council intends to replenish a reserve funds account that is used for an alternative purpose, then the City Manager shall submit a proposed repayment plan to the City Council for consideration within 60 days of adoption of the resolution authorizing such use. The City Council may approve a repayment plan by minute order. Any approved payment plans shall be added as an appendix to the city’s adopted budget.
D. Repayment plan modification/cancellation. The City Council may change the terms of an approved repayment plan, or may cancel an approved repayment plan, at any time by minute order. (Ord. 1235, passed 11-15-22)
ATTACHMENT C
ORDINANCE NO. __ 1_8_2_9_2_8_
An ordinance amending Section 5.120 of Article 4 of Chapter 6 of Division 5 of the Los Angeles Administrative Code regarding the Reserve Fund and adding a new Article 4.1 to Chapter 6 of Division 5 of the Los Angeles Administrative Code regarding a Budget Stabilization Fund.
THE PEOPLE OF THE CITY OF lOS ANGELES
DO ORDAIN AS FOllOWS:
Section 1. Section 5.120 of Article 4 of Chapter 6 of Division 5 of the Los Angeles Administrative Code is amended in its entirety to read as follows:
Sec. 5.120. Creation of the Fund.
(a) The Reserve Fund is established by Charter Section 302. Pursuant to Charter Section 302, the Reserve Fund shall include funding for unanticipated expenditures and revenue shortfalls in the City's General Fund and includes two accounts within the Reserve Fund, the Contingency Reserve Account and the Emergency Reserve Account. It is the goal of the City Council that the amount allocated annually to the Reserve Fund, including the amount required by the Charter to be allocated to the Emergency Reserve Account, shall be not less than 5 percent (5%) of all General Fund receipts anticipated for that fiscal year in the adopted budget. The provisions and limitations applicable to the Reserve Fund, Contingency Reserve Account, and Emergency Reserve Account are set forth in Charter Section 302.
However, the Charter provides that the City Council shall, by ordinance, establish policies for the use of the Contingency Reserve Account. (b) Policies for Use of the Contingency Reserve Account The Contingency Reserve Account shall include all monies in the Reserve Fund over and above the amount required to be allocated to the Emergency Reserve Account pursuant to Charter Section 302. The Contingency Reserve Account will be the source of additional funding needed as a result of unanticipated expenditures and revenue shortfalls. Transfers and appropriations from the Contingency Reserve Account shall be made in compliance with Charter Sections 340 and 341 in accordance with the policy decisions and determinations made by the Council and Mayor in connection with the City budget, as revised from time to time.
1 ATTACHMENT D
Sec. 2. A new Article 4.1 is added to Chapter 6 of Division 5 of the Los Angeles Administrative Code to read as follows:
CHAPTER 6, ARTICLE 4.1
BUDGET STABILIZATION FUND
Sec. 5.120.4. Findings and Purpose.
(a) Pursuant to Charter Section 302, there is hereby established within the City Treasury a fund to be known as the Budget Stabilization Fund (Fund). The purpose of the Fund is to provide a method to prevent overspending during prosperous years and to provide resources to help maintain service levels during lean years. The Mayor and City Council shall provide for deposits into the Fund from appropriate available sources of funding through the City budget process, and the Fund shall be administered in accordance with the Financial Policy for the Budget Stabilization Fund, as amended from time to time, in Council File No. 13-0455. The amount of each such deposit in the adopted budget for any given year shall be determined by calculating the anticipated growth in excess of 3.4 percent (3.4%) over the revenue in the prior fiscal year's adopted budget from the following seven general fund tax revenue sources:
(1) Property Tax; (2) Utility Users' Tax; (3) Business Tax; (4) Sales Tax; (5) Transient Occupancy Tax; (6) Documentary Transfer Tax; and (7) Parking Users' Tax. The amount so determined shall be appropriated in the budget to be deposited in the Fund.
The combined annual growth for the seven general fund tax revenue sources, specified herein as 3.4 percent (3.4%), shall be recalculated and revised, by ordinance,every five years based on the actual revenue received during the previous five years using the average amount of revenue received during the prior five-year calculation period as the base amount. The calculation shall be made more often as necessary to reflect significant changes in anyone of the seven specified general fund tax revenue sources, such as the repeal of, or any other action that reduces or increases the tax rates for, any of those taxes. The required annual budget appropriation to the Fund may be reduced (1) to maintain the Reserve Fund level at 5 percent (5%) of the General Fund; (2) to comply with the City's CIEP policy; (3) in the event a fiscal emergency is declared by the City Council and the Mayor; or (4) if this policy is suspended by the City Council and Mayor, or by the Council by a two-thirds vote after veto by the Mayor, based on findings that the best interest of the City requires such suspension. (b) In the event the combined growth rate for the seven General Fund tax revenue sources listed in subsection (a) herein, does not exceed 3.4%, or the recalculated rate, the amount that may be transferred from the Budget Stabilization Fund shall be the calculated amount of the combined growth rate (3.4%, or the recalculated amount) less the anticipated combined growth rate, not to exceed the following limitations:
2
Projected Growth Rate Maximum Transfer From The BSF
3.4% or higher
Greater than or equal to 3.3%, but less than 3.4%
Greater than or equal to 3.2%, but less than 3.3%
Greater than or equal to 3.1%, but less than 3.2%
Greater than or equal to 3.0%, but less than 3.1%
Less than 3%
0% of BSF Balance
5% of BSF Balance
10% of BSF Balance
15% of BSF Balance
20% of BSF Balance
25% of BSF Balance
(c) In the event the combined balance of the Fund and the Reserve Fund exceed 15 percent (15%) ofthe General Fund supported portion of the adopted budget, an amount up to the total of the excess over that 15 percent (15%), but not to exceed 25 percent (25%) of the balance of the Fund, may be transferred or appropriated from the Fund for one-time uses that include, but are not limited to, capital projects, infrastructure repairs, debt repayment, payment of litigation settlements, and equipment purchases. The amount transferred or appropriated from the Fund in any fiscal year may exceed 25 percent (25%) of the balance in the Fund only if (1) a fiscal emergency is declared by the City Council and the Mayor; or (2) this policy is suspended by the City Council and the Mayor, or by the Council by a two-thirds vote after veto by the Mayor, based on findings that the best interest of the City require such suspension. (d) Transfers and appropriations from the Fund shall be made in compliance with Charter Sections 340 and 341 in accordance with the policy decisions and determinations made by the Council and Mayor in connection with annual adoption of the City budget for the ensuing fiscal year, in order to mitigate revenue shortfalls due to economic recessions or revenue reductions and to address the resulting short-term budgetary shortfall.
3
Sec. 3. The City Clerk shall certify to the passage of this ordinance and have it published in accordance with Council policy in a daily newspaper circulated in the City of Los Angeles or by posting for ten days in three public places in the City of Los Angeles: one copy on the bulletin board located at the Main Street entrance to the Los Angeles City Hall; one copy on the bulletin board located at the Main Street entrance to the Los Angeles City Hall East; and one copy on the bulletin board located at the Temple Street entrance to the Los Angeles County Hall of Records ..
Ihereby certify that the foregoinl 0iBifance was introduced,at the n:eeting oft?e Council of the City of Los Angeles .f~B 2 .. • and was passed at Its meeting of MAR 4 2014 By __ ~ ~~~ __
Deputy
Approved _...:..)_Q ~fIt_4fL_2-_o_J -L-V _
Mayor
Approved as to Form and Legality
MICHAEL N. FEUER, City Attorney
BYC()~ ~
BEVERLY A. COOK
Assistant City Attorney
Date l_- l.._b_1>.:....¥.!-- _
File No. _, 3-D 4..:..:5;....::5~ _
M:\Econ Dev_Pub Finance\Public Finance\Beverly Cook\Ordinance - Reserve Fund & BSF Charter Changes (with CLA edits)
2.26.14.doc
4
CURRENT
CITY OF SAN DIEGO, CALIFORNIA
COUNCIL POLICY
CP-100-20
SUBJECT: RESERVE POLICY
POLICY NO.: 100-20
EFFECTIVE DATE: December 16, 2022
BACKGROUND:
A key attribute of a financially stable organization is appropriate reserves. Strong reserves position an organization to weather significant economic downturns more effectively, manage the consequences of outside agency actions that may result in revenue reductions, and address unexpected emergencies, such as natural disasters, catastrophic events caused by human activity, or excessive liabilities or legal judgments against the organization. In concert with the budgetary and fiscal policies adopted by the City Council, including “Structural Budget Deficit Elimination Guiding Principles” (R-305615), “City Council Budget Policy 000-02” and the “Mid-Year Budget Authority Ordinance” (O-20084), the City’s Reserve Policy serves as the policy framework to deploy City resources to meet the City’s financial commitments and address unexpected future events in a fiscally prudent manner.
PURPOSE:
The City’s Reserve Policy documents the City’s approach to establishing and maintaining strong reserves across the spectrum of City operations, including General Fund, risk management and enterprise operations. The policy is designed to:
• Identify City operations and functions for which reserves should be established and maintained, considering risks to the operation from unexpected events and the availability of other resources to address such events, and the volatility of expenditures and revenues of the operation;
• Establish target reserve levels and the methodology for calculating reserve levels; • Provide a time-frame for meeting reserve targets, using a phased approach where necessary so that reserve goals are balanced appropriately with current budget availability; and
• Establish criteria for the use of reserves and the process to replenish reserves.
ATTACHMENT E
CURRENT
CITY OF SAN DIEGO, CALIFORNIA
COUNCIL POLICY
CP-100-20
RESERVE POLICY:
General Fund Reserve Policy:
The General Fund1is the main operating fund that pays for general services provided by the City, such as public safety, parks, and library services. The General Fund accounts for all general revenues of the City not specifically levied or collected for other City funds and for expenditures related to the delivery of the City’s general services.
The General Fund Reserve Policy incorporates the requirements of the City Charter and is consistent with the City Council policies regarding the use of one-time and ongoing sources of revenue to fund City services.
The City’s General Fund Reserves shall be comprised of two separate Reserves. These Reserves will be considered together when calculating the total General Fund Reserve balance.
Emergency Reserve
An Emergency Reserve will be maintained for the purpose of sustaining General Fund operations in the case of a public emergency such as a natural disaster or other unforeseen catastrophic event. The Emergency Reserve will not be accessed to meet operating shortfalls or to fund new programs or personnel. This reserve may be expended only if an event is determined to be a public emergency by a two-thirds vote of the City Council, when such expenditures are necessary to ensure the safety of the City’s residents and their property. In the event this reserve is reduced below the amount established by this policy, the Mayor shall prepare a plan as promptly as conditions warrant to replenish the Emergency Reserve balance to the policy level.
Stability Reserve
A Stability Reserve will be maintained to mitigate financial and service delivery risk due to unexpected revenue shortfalls or unanticipated critical expenditures. The purpose of this reserve is to provide budgetary stabilization and not to serve as an alternative funding source for new programs. The Stability Reserve may be used as a source of one-time funding for critical capital or operating needs.
1 For the purpose of this policy, the General Fund is the operational fund as presented in the City’s annual budget document. Financial statements prepared on a GAAP basis include thisfund, as well as other funds that do not meet the criteria to be classified as special revenue, capital project, or debt service funds, pursuant to Government Accounting Standards Board (GASB) Statement No. 54.
CURRENT
CITY OF SAN DIEGO, CALIFORNIA
COUNCIL POLICY
CP-100-20
Recommendations to appropriate from the Stability Reserve will be brought forward by the Mayor and will require approval by a majority of the City Council. In the event this reserve is reduced below the amount established by this policy, the Mayor shall prepare a plan no later than one year from the reserve action to replenish the Stability Reserve balance to the policy level.
General Fund Reserve Calculation and Measurement
Total General Fund Reserves consist of the total of the Emergency Reserve and the Stability Reserve. The target level for total General Fund Reserves shall be 16.7% of the most recent three-year average of annual audited General Fund operating revenues2. The Emergency Reserve shall be set at a target level of 8%, and the Stability Reserve shall be set at a target level of 8.7%. The overall policy goal is to reach the 16.7% reserve level by fiscal year 2030, as set forth in the following schedule:
Target Date
Emergency Reserve
Target %
Stability Reserve
Target %
Total General Fund
Reserve Target %
June 30, 2022 7.70% 7.20% 14.90%
June 30, 2023 7.43% 6.87% 14.30%
June 30, 2024 7.21% 6.37% 13.58%
June 30, 2025 7.21% 6.37% 13.58%
June 30, 2026 7.50% 6.60% 14.10%
June 30, 2027 7.90% 6.80% 14.70%
June 30, 2028 8.00% 7.35% 15.35%
June 30, 2029 8.00% 8.00% 16.00%
June 30, 2030 8.00% 8.70% 16.70%
The Mayor and/or City Council may reevaluate the funding schedule for achieving the General Fund Reserve goal of 16.7% in budget surplus years to accelerate reserve contributions to achieve the reserve goal in a shorter time period.
2 For purposes of this policy, target reserve balances are based on operating revenues as presented in the General Fund Budgetary Schedule of Revenues, Expenditures and Changes in Fund Balance in the Required Supplementary Information section of the Annual Comprehensive Financial Report. These revenues are from recurring revenue sources that support operations, and exclude other financing sources.
CURRENT
CITY OF SAN DIEGO, CALIFORNIA
COUNCIL POLICY
CP-100-20
Excess Equity
Excess Equity is Unassigned Fund Balance that is not otherwise designated as General Fund Reserves and is available for appropriation. Excess Equity most commonly results from a nonrecurring source of revenue. Consistent with City Council Budget Policy (Policy No. 000-02) and the use of one-time and ongoing revenues, Excess Equity will be appropriated primarily for unanticipated circumstances, such as a General Fund revenue shortfall affecting programs included in the current year budget or for one-time priority expenditures. Recommendations for the use of Excess Equity may be brought forward by the Mayor and will require approval by a majority of the City Council.
The Quarterly Budget Monitoring Reports provide an estimate of Excess Equity based on the projected activity from operations during the fiscal year; however, Unassigned Fund Balance is not determined until the City closes its books as of June 30. In the May Revision of the annual budget, the Mayor may propose to budget a transfer or designate any projected Excess Equity to fund the General Fund Reserves, Pension Payment Stabilization Reserve, Risk Management Reserves or for a priority one-time capital need. The transfer or designation would occur after the fiscal year close is completed and the budgeted Excess Equity amount is determined to be available in fund balance above the 16.7% General Fund Reserves.
City Charter
City Charter Section 91 requires the City to create and maintain a “General Reserve Fund” to meet the cash obligations of the City for the first four months, or other necessary periods of each fiscal year prior to the collection of taxes. It further stipulates the fund may be expended only in the event of a public emergency by the affirmative vote of two-thirds of the City Council. This requirement is met through the City’s pooled investment fund and when necessary cash borrowing through the sale of Tax and Revenue Anticipation Notes.
Accounting
Total General Fund Reserves will be based on audited General Fund Revenues (budgetary basis). The Emergency Reserve is reported in the General Fund’s Balance Sheet as Restricted Fund Balance. The sum of the Stability Reserve and Excess Equity shall equal Unassigned Fund Balance.
CURRENT
CITY OF SAN DIEGO, CALIFORNIA
COUNCIL POLICY
CP-100-20
Pension Payment Stabilization Reserve Policy:
A Pension Payment Stabilization Reserve (Pension Reserve) will be maintained to mitigate service delivery risk due to increases in the annual pension payment, the Actuarially Determined Contribution (ADC).
The Pension Reserve shall only be used to supplement increases in the ADC payment as calculated in the most recent Actuarial Valuation Report (Report) produced by the San Diego City Employees’ Retirement System’s (SDCERS) actuary.
Increases in the ADC are caused by several factors, such as 1) system earnings in the prior fiscal year that are lower than the assumed actuarial rate (discount rate); 2) changes in actuarial assumptions approved by the SDCERS Board, including a reduction in the discount rate; and 3) other significant liability experience losses.
CURRENT
CITY OF SAN DIEGO, CALIFORNIA
COUNCIL POLICY
CP-100-20
The purpose of the Pension Reserve will be to provide a source of funding for the ADC when these conditions occur and the ADC has increased year over year.
Budgeting the Pension Reserve
Recommendations to appropriate from the Pension Reserve may be brought forward by the Mayor in the annual budget process and will require approval by a majority of the City Council.
The budgeting of an amount from the Pension Reserve as described by this policy may occur when the City is faced with an increase in the ADC payment, and as warranted based on the current fiscal conditions of the City. During the adoption of the annual budget, the City Council has the authority to propose the use of the Pension Reserve consistent with the Pension Reserve Policy and the City Charter. In the event the Pension Reserve is reduced below the amount established by this policy, the Mayor shall prepare a plan no later than one year from the reserve action to replenish the Pension Reserve balance to the policy level.
Pension Reserve Calculation and Measurement
After the City has reached the 16.7% reserve target for the General Fund Reserves, the City will fund and maintain a Pension Reserve up to 8% of the most recent three year average of the ADC as reported in the most recent Actuarial Valuation Reports. The reserve amount for the General Fund shall be prorated based on the most recently adopted budget allocation.
Risk Management Reserve Policy:
The Public Liability, Workers’ Compensation, and Long-Term Disability Funds provide funding sources for certain claims made against the City. The Public Liability Fund is funded by the General Fund to support claims arising from real or alleged acts on the part of the City, including claims for bodily injury, property damage, inverse condemnation, false arrest, and errors and omissions. The Workers’ Compensation Fund is a citywide fund that covers medical and disability costs for industrial injury claims, while the Long-Term Disability Fund provides non-industrially disabled City employees with income and flexible benefits coverage. For purposes of this policy, cash on hand is used to identify the projected reserve balance.
CURRENT
CITY OF SAN DIEGO, CALIFORNIA
COUNCIL POLICY
CP-100-20
Public Liability Fund Reserve
The City will maintain reserves equal to 50% of the value of outstanding public liability claims.
This reserve level recognizes that not all claims will be due and payable at one point in time and that not all claims will be awarded, yet there may be more than one large claim that could require an immediate payment. A smoothing methodology using the annual actuarial liability valuations for the three most recent fiscal years will be used to determine the value of outstanding public liability claims for purposes of calculating the reserve level. The policy goal is to reach the 50% reserve level by fiscal year 2019 through General Fund contributions to the Public Liability Fund Reserve to meet the annual targets as set forth in the following schedule:
Public Liability Fund Reserves Targets
Target Date Target %
June 30, 2016 40%
June 30, 2017 43%
June 30, 2018 47%
June 30, 2019 50%
The General Fund contribution to the Public Liability Fund Reserve will be reassessed annually and incorporated into the budget process in order to ensure that the targeted goal is met in a manner that is balanced with other budget priorities.
Workers’ Compensation Fund Reserve
The City will maintain reserves equal to 12% of the value of the outstanding claims. A smoothing methodology using the annual actuarial liability valuations for the three most recent fiscal years will be used to determine the value of outstanding claims for purposes of calculating the reserve level.
The contribution to the Workers' Compensation Fund Reserve will be reassessed annually and incorporated into the budget process in order to ensure that the targeted goal is met in a manner that is balanced with other budget priorities.
Long-Term Disability Fund Reserve
The City will maintain reserves equal to 100% of the value of outstanding claims. A smoothing methodology using the annual actuarial liability valuations for the three most recent fiscal years will be used to determine the value of outstanding claims for purposes of calculating the reserve level. The target reserve balance will be maintained to support the feasibility of purchasing an insurance policy to cover this benefit as an alternative to the current practice of self-insurance.
CURRENT
CITY OF SAN DIEGO, CALIFORNIA
COUNCIL POLICY
CP-100-20
Development Services Enterprise Fund Reserve Policy:
The Development Services Fund accounts for the City’s development review and inspection services, which are funded directly by fees and charges paid by Development Services’ customers. The fund is intended to be self-supporting.
Operating Reserve
The Operating Reserve is intended to provide financial stability during economic cycles and provide business continuity when significant natural or manmade disasters occur. The reserve may be used to meet current expenditures following an unanticipated decline in workload resulting in decreased revenues.
The use of funds is for unanticipated emergency situations resulting from loss of revenue and would include major incidents such as an earthquake or wildfires. Revenue generating work, such as permitting or land use may be interrupted; however, downsizing staff may not be prudent as construction will commence or increase once damage assessments are completed.
The reserve is not intended to maintain staffing levels during lengthy economic recession; and based on forecasted activity it may be used to maintain core services during relatively short downturn periods. The reserve will be replenished to previous levels at the earliest opportunity after revenues have improved and stabilized to cover on-going operating expenses. The Chief Financial Officer/Chief Operating Officer will be responsible for approving the use of the reserve for unanticipated operating expenses.
The reserve is based on annual operating budget expenditures for the fiscal year. The target reserve level for the operating reserve is 7% - 15% of operating expenses, or a target of 60 days of operating reserves once the 15% is obtained. Expenditures in Development Services are a better indicator of operational needs to use as a basis to develop a reserve that supports continuity of business. Revenues can be significantly impacted by changes in the economy and could potentially cause too much volatility in the reserve levels from year to year. The 7% target reserve is expected to be reached by Fiscal Year 2016, and the maximum reserve level of 15% by Fiscal Year 2025. The target reserve amount will be assessed on an annual basis using the most recent three years of audited actual expenditures.
CURRENT
CITY OF SAN DIEGO, CALIFORNIA
COUNCIL POLICY
CP-100-20
Development Services Fund Reserve Targets
Target Date
Target
(% of Operating
Expenses)
June 30, 2016 7.00%
June 30, 2017 8.25%
June 30, 2018 9.50%
June 30, 2019 10.00%
June 30, 2020 10.50%
June 30, 2021 11.00%
June 30, 2022 11.50%
June 30, 2023 12.00%
June 30, 2024 13.50%
June 30, 2025 15.00%
Water Enterprise Fund Reserve Policy:
The Water Enterprise Fund accounts for specific services funded directly by fees and charges to City water customers. The fund is intended to be self-supporting.
Emergency Operating Reserve
The Emergency Operating Reserve is intended to be used in the event of a catastrophe that prevents the utility from operating in its normal course of business. The reserve level is defined as the number of days of operation the reserve could support in the event of a major disruption to the Water system, and shall be calculated based on the annual operating budget for the fiscal year, less the budgeted operating contingency and the budget for water purchases and debt service (including State Revolving Fund loan repayments). The Emergency Operating Reserve target shall be equivalent to 70 days of operations. This reserve level of 70 days recognizes that the Water Enterprise Fund has a large diversified customer base, a steady and reliable demand for services, and other reserves available for specific needs.
Use of the Emergency Operating Reserve is restricted to emergency situations, and City Council approval is required to appropriate these reserves. Any request to utilize the Emergency Operating Reserve will include a plan and timeline for replenishment, which may be in conjunction with the City Council authorization of a future Cost of Service Study and rate adjustment.
CURRENT
CITY OF SAN DIEGO, CALIFORNIA
COUNCIL POLICY
CP-100-20
Emergency Capital Reserve
The Emergency Capital Reserve is intended to be used for emergency capital needs. The reserve is budgeted annually at $5.0 million in the Capital Improvements Budget. If the reserve is used to fund unforeseen emergency conditions resulting in the need to immediately repair or replace existing assets, approval from the Chief Financial Officer or the Chief Operating Officer is required.
Rate Stabilization Fund (RSF) Reserve
This fund was established and is maintained pursuant to the legal bond documents for the outstanding water system revenue bonds.3 Transfers in and out of this fund serve as a revolving mechanism to mitigate significant fluctuations in the water rates for the system operations and maintain stable debt service coverage ratios for the outstanding water revenue bonds. The permitted uses of the RSF are limited to the operations and maintenance costs of the water system.
This policy establishes a baseline target for the RSF in an amount equal to 5% of the prior fiscal year water system total operating revenue.4 The funding level in the RSF can go up or down depending on the year-to-year changes in the Water Fund’s operating revenues and expenditures. The RSF will be treated as a coverage stabilization tool enabling transfers into and out of the RSF, as necessary by the Chief Financial Officer, upon recommendation of the Public Utilities Department. Transfers may be made into the RSF, increasing the balance above the 5% baseline if the water system has excess net system revenues5 6 in any given fiscal year. In
contrast, if the water system is anticipated to experience weak net system revenues in any given fiscal year, funds can be drawn down from the RSF to provide necessary revenue to cover current year operations and maintenance costs.
If the RSF goes below the baseline amount of 5% of the prior fiscal year water system total operating revenue, it will be replenished to the target level from any surplus net system revenue in the next fiscal year or in conjunction with the City Council authorization of a future Cost of Service Study and rate adjustments.
Secondary Purchase Reserve
This reserve is established to purchase additional water supply in case of a major drought or unforeseen emergency that diminishes the City’s normal supply. The size of the reserve is equal to 6% of the annual water purchase budget (including commodity charge and fixed costs). City Council action is required in order to appropriate these reserves. 3 Section 6.08 of the Amended and Restated Master Installment Purchase Agreement (“Water MIPA”) dated January 1, 2009.
4 Total Operating Revenue as reported in the ACFR - Proprietary Funds Statement of Revenues, Expenses, and Changes in Fund Net Assets.
5 Operating system revenues less operating system expenses, as defined in the Water MIPA.
CURRENT
CITY OF SAN DIEGO, CALIFORNIA
COUNCIL POLICY
CP-100-20
Any request to utilize the Secondary Purchase Reserve will include a plan and timeline for replenishment, which may be in conjunction with the City Council authorization of a future Cost of Service Study and rate adjustment.
Sewer Enterprise Fund Reserve Policy:
The Sewer Enterprise Fund accounts for specific services funded directly by fees and charges to City sewer customers. The fund is intended to be self-supporting.
Emergency Operating Reserve
The Emergency Operating Reserve is intended to be used in the event of a catastrophe that prevents the utility from operating in its normal course of business. The reserve level is defined as the number of days of operation the reserve could support in the event of a major disruption to Sewer system, and shall be calculated based on the annual operating budget for the fiscal year, less the budgeted operating contingency and the budget for debt service (including State Revolving Fund loan repayments). The Emergency Operating Reserve target shall be equivalent to 70 days of operations. Any reserves provided by the Participating Agencies for their proportionate share of the Metropolitan Sewer System shall count toward the 70 day target. This reserve level target of 70 days recognizes that the Sewer Enterprise Fund has a large diversified customer base, a steady and reliable demand for services, and other reserves available for specific needs.
Use of the Emergency Operating Reserve is restricted to emergency situations, and City Council approval is required to appropriate these reserves. Any request to utilize the Emergency Operating Reserve will include a plan and timeline for replenishment, which may be in conjunction with the City Council authorization of a future Cost of Service Study and rate adjustment.
Emergency Capital Reserve
The Emergency Capital Reserve is intended to be used for emergency capital needs. The reserve is budgeted annually at $5.0 million in the Capital Improvements Budget. If the reserve is used to fund unforeseen emergency conditions resulting in the need to immediately repair or replace existing assets, approval from the Chief Financial Officer or the Chief Operating Officer is required.
Rate Stabilization Fund (RSF) Reserve
This fund was established and is maintained pursuant to the legal bond documents for the outstanding wastewater system revenue bonds.7 Transfers in and out of this fund serve as a revolving mechanism to significant potential fluctuations in the wastewater rates for the system operations and maintain stable debt service coverage ratios for the outstanding wastewater revenue bonds. The permitted uses of the RSF are limited to the operations and maintenance costs of the wastewater system.
7 Section 6.08 of the Master Installment Purchase Agreement (“Wastewater MIPA”) dated September 1, 1993.
CURRENT
CITY OF SAN DIEGO, CALIFORNIA
COUNCIL POLICY
CP-100-20
This policy establishes a baseline target for the RSF in an amount equal to 5% of the prior fiscal year wastewater system total operating revenue.8²The funding level in the RSF can go up or down depending on the year to year changes in the Wastewater Fund’s operating revenues and expenditures. The RSF will be treated as a coverage stabilization tool enabling transfers into and out of the RSF, as necessary by the Chief Financial Officer, upon recommendation of the Public Utilities Department.
Transfers may be made into the RSF, increasing the balance above the 5% baseline, if the wastewater system has excess net system revenues9¹in any given fiscal year. In contrast, if the wastewater system is anticipated to experience weak net system revenues in any given fiscal year, funds can be drawn down from the RSF to provide necessary revenue to cover current year operations and maintenance costs.
If the RSF goes below the baseline amount of 5% of the prior fiscal year wastewater system total operating revenue, it will be replenished to the target level from any surplus net system revenue in the next fiscal year or in conjunction with the City Council authorization of a future Cost of Service Study and rate adjustments.
Refuse Disposal and Recycling Enterprise Funds Reserve Policy:
The Refuse Disposal Enterprise Fund was established to separate tipping fee revenues from the General Fund. The tip fees support active and inactive landfill operations, solid waste code enforcement, commercial and industrial recycling programs, community cleanups and abatements, and collection and maintenance of street litter containers in business districts and are levied on landfill users, including the City of San Diego.
The Recycling Enterprise Fund and Assembly Bill (AB) 939 Fee were established as a result of the Integrated Waste Management Act of 1989. AB 939 authorized local jurisdictions to impose fees based on the types or amounts of solid waste generated to be used to pay actual costs incurred in preparing, adopting, and implementing integrated waste management plans.
Operating Reserve
The Operating Reserve is intended to be used in the event that the enterprise fund requires additional resources to operate in its normal course of business. This reserve may be drawn upon to fund unanticipated emergency expenditures, one-time high priority programs, or revenue shortfalls due to an unexpected economic slowdown or recession. The Chief Operating Officer and/or Chief Financial Officer will have authority to approve expenditures and the reserve must be replenished no later than the subsequent fiscal year. 8 Total Operating Revenue as reported in the ACFR - Proprietary Funds Statement of Revenues, Expenses, and Changes in Fund Net Assets.
9 Operating system revenues less operating system expenses, as defined in the Wastewater MIPA.
CURRENT
CITY OF SAN DIEGO, CALIFORNIA
COUNCIL POLICY
CP-100-20
The Operating Reserve target level is 15% of operating revenues for both the Refuse Disposal and the Recycling Funds, which equates to approximately two months of operations. Revenues reflect the business cycle and are an indicator of operational needs; therefore revenues are the basis to develop a policy reserve to support business continuity. The Environmental Services Department and Department of Finance will conduct an annual review of the Operating Reserve amounts to maintain policy funding levels.
Golf Course Enterprise Fund Reserve Policy:
The City has operated a municipal golf program since 1915. Today, the Golf Division operates three City golf complexes: Balboa Park Golf Course 18-hole and 9-hole courses; Mission Bay 18-hole executive golf course; and Torrey Pines 18-hole North Course and 18-hole South Course. The Golf Course Fund was established in 1991 and operates in a manner similar to a private sector enterprise where the cost of providing services is recovered through user charges.
A primary goal of the Golf Course Fund (Fund) is to ensure that the City operated golf courses are financially self-sufficient and that they do not require financial support from the City’s General Fund.
The City will maintain reserves equal to 12% of the most recent three year average of annual audited operating revenues10, with the intent to maintain the reserve balance at the same level for future years based on historical requirements. The 12% reserve level aligns with GFOA best practices, which recommends enterprise funds maintain a working capital reserve equivalent to a minimum of 45 days, or 12%. This lower level of reserve funding recognizes that the Golf Course Enterprise Fund does not provide essential City services, such as those provided by the Water and Sewer Funds, and has greater flexibility to adjust its operational expenditures during emergencies, as well as having the flexibility to stop operations without impacting public health or safety. The Fund does not require reserves for continuity of business or emergency situations.
The reserve is established to ensure financial stability or for one-time large investments in infrastructure or large maintenance efforts. The Parks and Recreation Department will conduct an annual review of the reserve funds to determine adequate funding levels and alignment with the Golf Business Plan.
Recommendations to appropriate from the reserve will be brought forward by the Mayor and will require approval by a majority of the City Council. In the event this reserve is reduced below the amount established by this policy, the Mayor shall prepare a plan as promptly as conditions warrant to replenish the reserve balance to the policy level. 10 Target reserve balances are based on operating revenues as presented in the Budgetary Schedule of Revenues, Expenditures and Changes in Fund Balance in the Required Supplementary Information section of the Annual Comprehensive Financial Report. These revenues are from recurring revenue sources that support operations, and exclude other financing sources.
CURRENT
CITY OF SAN DIEGO, CALIFORNIA
COUNCIL POLICY
CP-100-20
The Golf Course Fund Reserve will be reassessed every two years and funding requirements will be incorporated into the budget process in order to ensure that the targeted goal is met in a manner that is balanced with other budget priorities.
COMPLIANCE WITH RESERVE POLICY:
Reserve Targets
The Reserve Policy is based on either percentage targets or days of operation; all associated dollar figures represent estimated/projected targets based on either the percentage target or days of operation target set by the Reserve Policy.
Reporting Use of Reserve Funds
Any requests for the use of reserves and/or Excess Equity will be accompanied by a current status report of the affected reserve fund and impacts on the future reserve levels. Reserve and Excess Equity status updates will be presented as part of the required Quarterly Budget Monitoring Reports.
Reserve Expenditures
Unless specified otherwise in the Reserve Policy, expenditures from any reserve will require a recommendation of the Mayor and City Council action to appropriate the funds. The Mayor may recommend reserve expenditures through the budget process or at regular or special City Council meetings for City Council consideration and approval.
Replenishment of Reserves
Should a particular reserve fall below the targeted reserve level set forth in the Reserve Policy, the Mayor will develop a plan to replenish the reserve in a reasonable timeframe, unless as otherwise required by this Policy. The proposed plan will be presented to the Budget and Government Efficiency Committee and the City Council as part of the subsequent fiscal year budget.
Deviations from the Reserve Policy
No deviations from the Reserve Policy will be allowed except as recommended by the Mayor and approved by the City Council. Proposed exceptions to the Reserve Policy will be presented first to the Chief Financial Officer and/or Chief Operating Officer, and then to the Budget and Government Efficiency Committee. After the Budget and Government Efficiency Committee review and recommendation, the proposed exception will be presented to the City Council for action.
Updates to Reserve Policy
Any changes, additions, or deletions to the Reserve Policy will be brought forward to the Budget and Government Efficiency Committee for review followed by a presentation to the City Council for formal action.
CURRENT
CITY OF SAN DIEGO, CALIFORNIA
COUNCIL POLICY
CP-100-20
The Reserve Policy will be reviewed at least biennially and discussed if changes are necessary to ensure the policy is effective, and remains current with general accounting and financial best practice standards, as well as any regulatory changes that may occur over time.
CONCLUSION:
Maintaining, regularly updating, and adhering to an appropriately constructed reserve policy is a good business practice recognized by the Government Finance Officers Association, and is among the factors considered by credit rating agencies and the investment community when assessing the credit-worthiness of an organization. The City recognizes that the Reserve Policy is a cornerstone of the organization’s fiscal health. As such, a biennial review of the Reserve Policy will be performed and any changes to the Reserve Policy will be brought forward for City Council consideration and approval.
GLOSSARY:
Emergency Capital Reserve
The Emergency Capital Reserve is intended to be used for emergency capital needs. If the reserve is used to fund unforeseen emergency conditions, approval from the Chief Financial Officer or the Chief Operating Officer is required.
Emergency Operating Reserves
The Operating Reserve for an Enterprise Fund, such as the Water Utility or the Wastewater Utility, is intended to be used should a catastrophe occur that prevents the utility from operating according to its normal course of business. Use of the reserve is restricted to emergency situations resulting in loss of revenue and the reserve must be replenished in accordance with the timeframe established in the respective policies. The Chief Operating Officer and/or Chief Financial Officer will have the authority to approve expenditures from the reserve.
Emergency Reserve
Certain funds, such as the General Fund, will maintain an Emergency Reserve which may only be used for qualifying emergencies, such as a natural disaster, terrorist attack, or other unforeseen catastrophic event caused by human activity. The Emergency Reserve may be expended only in the event of a public emergency, as determined by a two-thirds vote of the City Council.
Stability Reserve
Stability Reserve provides budgetary stabilization and does not serve as an alternative funding source for new programs.
CURRENT
CITY OF SAN DIEGO, CALIFORNIA
COUNCIL POLICY
CP-100-20
Excess Equity
Excess Equity is Unassigned Fund Balance that is not otherwise designated as General Fund Reserves and is available for appropriation. Excess Equity most commonly results from a nonrecurring source of revenue.
Rate Stabilization Reserves
The purpose of Rate Stabilization Reserves is to ensure that legal requirements relating to annual debt service coverage, as set forth in bond indenture agreements, are fulfilled. This type of reserve is more typical for Enterprise Fund financings. The reserve targets are calculated based on the legal requirements outlined in the applicable bond financing documents, and maintained throughout the term of the bonds.
Secondary Purchase Reserve
This reserve is established to purchase additional water supply in case of a major drought or unforeseen emergency that diminishes the City’s normal supply.
Working Capital
Working Capital is current assets (cash or equity in pooled cash and liquid investments and receivables less than 60 days for governmental funds, 90 days for enterprise funds) minus current liabilities (payables) and encumbrances and other restrictions. Working Capital does not include long-term assets such as certain longer term investments, loans receivable, fixed assets, inventory, and equipment. For the purpose of the Reserve Policy and when referring to the General Fund Emergency Reserve, the term “Working Capital” is used synonymously with “Emergency Reserve.”
HISTORY:
General Fund Reserve Level Council Policy
Adopted by Resolution R-297182 – 10/15/2002
Amended by Resolution R-307154 – 12/15/2011
Amended by Resolution R-308740 – 02/26/2014
Amended by Resolution R-309101 – 07/17/2014
Amended by Resolution R-310360 – 04/28/2016
Amended by Resolution R-310945 – 02/21/2017
Amended by Resolution R-311414 – 11/20/2017
Amended by Resolution R-311817 – 06/22/2018
Amended by Resolution R-314552 – 12/16/2022
ATTACHMENT F
City Council
June 5, 2012
and reporting purposes of this reserve policy, it was suggested by staff, and the City Council Budget Ad Hoc Committee members concurred, that one reserve level or dollar amount be brought forward for approval by the City Council. 4 . On April 17, 2012, the City Council received and filed the Comprehensive Annual Financial Report ( CAFR) at June 30, 2011, and fund balances were reported and classified in accordance with GASB 54, as a formal policy had yet to be adopted by the City .
5. On May 1, 2012, the City Attorney and Administrative Services Director recommended to the City Manager, that for ease of clarity, the adoption of the GASB 54 Fund Balance Policy and the Budget Reserve Fund Balance requirements to be adopted by Ordinance ( as recommended by the City Council Budget Ad Hoc Committee), should be considered separately as each proposed action has a different objective.
The GASB 54 is a fund balance classification and financial reporting mandate only and is recommended to be adopted by policy only. The Budget Reserve Fund Balance requirements address how General Fund Reserves can and cannot be spent and the requirements for the Reserves should be adopted by Ordinance . Further, the proposed Budget Reserve Fund Balance Requirements is intended for the General Fund only and GASB 54 must address all funds .
6. On May 4 , 2012, staff met with the City Council Budget Ad Hoc Committee ( i.e., Mayor Yu and Council member Blum) to discuss the merits of separating the GASB 54 Fund Balance Policy and the Budget Reserve Fund Balance requirements. The City Council Budget Ad Hoc Committee concurred with staffs recommendation.
7. On May 15, 2012 , the City Council introduced Ordinance No . 12-953. After answering a clarifying question from Councilmember Blum, staff recommended one minor wording change. That change is red -lined on Page 3 in the attached Ordinance and this Ordinance is now presented for second reading and adoption .
ANALYSIS:
The City Council desires to establish various budgeted reserve fund accounts that will allow for the funding of emergencies, contingencies, liabilities and planned major capital projects. The goal is to maintain adequate financial reserves so that in times of econom ic downturns and annual revenue fluctuations , the City can continue to provide essential city services to meet expenditure obligations .
The dollar amount of General Fund recommended reserves , the criteria for each Reserve and the GASB 54 Classification is documented in Attachment " A". It is proposed that Budget Fund Balance Reserves be established for:
Emergency/ Disasters at $1 ,000 ,000;
Liquidity at $2,000 ,000 ; and
City Council
June 5, 2012
Local Economic Uncertainty at $500, 000.
It is recommended that these Reserves be established by Ordinance ( Attachment " 8") as proposed. This approach is suggested so that any changes in these Reserves will require an adoption of a new Ordinance with a first and second reading, eliminating the ability to change the reserve levels without careful consideration and a 4/51h affirmative vote of the City Council.
The recommended reserve for Other Postemployment Benefits ( OPES) will be part of the annual budget process and it is anticipated that an amount will be earmarked in each proposed fiscal year budget to reduce the liability of the postemployment benefits estimated at $ 9,142,000. At the June 19, 2012, City Council meeting, staff will recommend that the City Council allocate $ 1,000, 000 OPES Trust Fund which will include a recommendation for the Public Agency Retirement Services ( PARS) to administer the Trust Fund.
The remaining recommended Reserves are as follows:
Fleet Management at $400,000;
Facilities Management at $4,000, 000;
Technology Replacement at $200,000;
Economic Development at $8,000,000; and
Opportunities for One-Time Expenditures at $4,600,000.
These reserve levels will be reviewed on an annual basis ( or more often if necessary) as part of the City Budget process and recommendations for changes in these reserves will come from the City Manager to the City Council .
CONCLUSION:
In order to meet the City Council' s objective of developing and implementing comprehensive budgeted reserves for fund balances, it is recommended the City Council adopt the attached Ordinance, stipulating minimum amounts for Emergency/ Disasters, Liquidity and Local Economic Uncertainty. The adoption of an Ordinance is a best practice to ensure budgeted reserve levels cannot be changed without a thoughtful process and 4/5 vote by the City Council. Further, in order to enable long-term planning for replacement of the fleet, facilities, technology, economic development and one-time expenditures, recommended reserve levels shall be an on-going part of the annual budget process.
FISCAL IMPACT:
This action does not have an impact on the FY 2011- 12 City Budget.
City Council
June 5, 2012
ATTACHMENTS:
A. General Fund Recommended Reserves- FY 2012- 13
B. Ordinance No. 12-953, An Ordinance of the City Council of the City of Temple City, California, Adding a New Chapter 10 "Budget Reserve Fund Balance Requirements" to Title 2 "Administration" of the Temple City Municipal Code
Classification
Emergency/ Disasters
Uquidoty
localEconomic Uncertainty
other Post Employment
BenefiLs ( OPEB)
Risk Manasement- Not recommended at this time.
Fleet Management
Facilities Management
TeclvooiOIY Replacement
Economic Development
Opportunoties and One- nme Expendotures
Undesognated Fund Balance
Total Estomated Unassigned Fund Balance at June 30, 2012 Per Adopted Budget
CITY OF TEMPLE CITY
GENERAL FUND RECOMMENDED RESERVES
FY 2012- 13
Criteria
To ensure the City can provide
essential services to the public
durin& a dinster.
The City' s portfolio is currently $ 38 mill ion.
With a total Budget o f $15 m illlon, the City
can cash How 2 +years ofoperations and
budgeted capital at current levels. However,
with theRosemead Blvd Enhancement
Project coming up, a liquidly reserve is
reommended as theCity will havesubstantial
cash outlays, receiving reimbursement for
expenses at a laterdate.
Reduction in sales tax and property tax
revenues and certain fees that can be
sensitive to the local economic cycles.
There is no mandate to fund however some
level of funding is rei: ommended.
Temple Coty has first dollar coverage for all
risks.
To provide fo r future replacement.
To provide for future replacement.
To providefor future replacement.
To provide resources for future
economic growth.
To provide resources for leveraging
opportumtoes and unforeseen one- time
expendotures .
Recommended
Reserves •
s 1,000,000
s 2,000, 000
500,000
1, 000, 000
400, 000
4, 000, 000
s 200,000
s 8, 000, 000
s 4,600, 000
s -
s 21, 700, 000
Ifall or a portion of the Reserve os utilized, the Reserve woll be restored to the orogonallevel as adopted within the next love fiscal years or wheneverreasonably possible
Attachment " A"
GASB 54 Rei: ommended
Classification
Committed
Commotted
Commotted
Committed
I
Assisned
I
Assogned
Assigned
I
Assogned I
Assogned
Unassogned
Attachment " B"
ORDINANCE N0.12-953
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF TEMPLE CITY, CALIFORNIA, ADDING A NEW
CHAPTER 10 " BUDGET RESERVE FUND BALANCE
REQUIREMENTS" TO TITLE 2 " ADMINISTRATION" OF
THE TEMPLE CITY MUNICIPAL CODE.
WHEREAS, to ensure adequate fiscal resources and stable delivery of City services during emergencies, fiscal emergencies , annual revenue fluctuation, liquidity shortages, or severe economic downturns, the City desires to establish a General Fund reserve requirements, and;
WHEREAS, to ensure fiscal prudence and responsibility the City desires to also establish criteria for use of General Fund reserves; and WHEREAS, the City desires to adopt these requirements and criteria by Ordinance and codify its provisions in the City of Temple City Municipal Code .
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TEMPLE
CITY HEREBY ORDAINS AS FOLLOWS:
SECTION 1. Addition of Chapter 10 to Title 2 of the Temple City Municipal Code. The City Council hereby adds a new Chapter 10 " Budget Reserve Fund Balance Requirements ) to Title 2 " Administration" of the Temple City Municipal Code, which shall read as follows:
Chapter 10
BUDGET RESERVE FUND BALANCE REQUIREMENTS
2550: PURPOSE
2560: DEFINITIONS
2570: BUDGET RESERVE FUND BALANCE TARGETS
2550: PURPOSE
The primary purpose of this Chapter is to ensure adequate fiscal resources and stable delivery of City services during emergencies, fiscal emergencies, annual revenue fluctuations, liquidity shortages, or severe economic downturns so that in the event of 1
these occurrences the City is able to continue providing essential city services and satisfying expenditure obligation. The secondary purpose of this Chapter is to enable realistic long-term planning, assist in development of annual budgets, require the prudent use of resources, and to implement of sound fiscal management practices. To achieve these purposes, this Chapter requires the City to :
1. Establish adequate reserves.
2. Establish sound fiscal reserve requirements.
3. Ensure the City satisfies its short- term and long-term financial obligations.
4. Establish a periodic review of the City' s fund balances and reserves.
5. Enhance the City' s credit rating.
To achieve the purposes of this Chapter it is contemplated that the City will establish various Budget Reserve Fund Balance accounts facilitating funding of emergencies, contingencies, liabilities and planned major capital projects. . 2560: DEFINITIONS
For the purposes of this Chapter 10, the following terms shall have the following meanings:
a) " Emergency" shall mean, in accordance with Section 2701 , the actual or threatened existence of conditions of disaster or of extreme peril to the safety of persons and property within the city caused by such conditions as air pollution, fire, flood, storm, ep idemic, riot or earthquake, or other conditions, including conditions resulting from a labor controversy, which conditions are or are likely to be beyond the control of the services, personnel, equipment and facilities of the city, requiring the combined forces of other political subdivisions to combat. b) " Fiscal Emergency" shall mean the occurrence of any one or more of the following :
1) the existence of a default on a debt obligation for more than thirty days, or the reasonable probability that the City will default on a debt obligation, or that the City will not be able to cure a default on a debt obligation within thirty days;
2) the existence of a failure for lack of funds to make payment of all payroll to officials, officers, or employees of the municipal corporation for more than one payment cycled ;
3) the existence of a condition in which accounts due and payable at the end of the preceding fiscal year, less the year- end balance, exceeded one-twelfth of the available revenues during the preceding fiscal year; 4) the existence of a condition in which the aggregate of deficit amounts 2
of all deficit funds at the end of the preceding fiscal year, less the year- end balance, exceeded one-twelfth of the total of the general fund budget for that year and the receipts to those deficit funds other than from transfers from the general fund;
5) the existence of a condition in which , at the end of the preceding fiscal year, moneys and marketable investments in or held for the unsegregated treasury of the municipal corporation, minus outstanding checks and warrants, were less than the aggregate of the positive balances of the general fund and those special funds whose purposes the unsegregated treasury meets, and such deficiency exceeded one-twelfth of the total amount received into the unsegregated treasury during the preceding fiscal year.
c) " Economic Stabilization Reserve" shall mean, as provided in GASB 54 Governmental Accounting Standards Board), an identified fund for which the specified purpose is stabilizing the delivery of city services during periods of operational deficits resulting from deferral of federal, state, or county remittance and which may also be used as a short- term bridge from unexpected and drastic downturns in the economy. Pursuant to GASB 54 stabilization is regarded as a specified purpose only if the circumstances or conditions that signal the need for stabilization ( a) are identified in sufficient detail and ( b) are not expected to occur routinely.
2570: MINIMUM BUDGET RESERVE FUND BALANCE
The City will maintain combined General Fund reserves as follows:
a) Emergency/ Disaster Reserve-$ 1,000,000.
1) Use of these funds is allowable only when the following conditions have been met: ( i) The City Council has declared the existence of either an " Emergency" or "Fiscal Emergency"; and ( ii) The use of the reserve has been approved by 4/5th vote of the membership of the City Council. 2) Within 6 months after the Council' s determination in paragraph ( 1) above the City Manager shall present . a plan to the City Council to replenish this fund over a ~.vo year period .
3) If all or a portion of the Reserve is utilized, the Reserve will be restored to the original level as adopted within the next five years or whenever reasonably possible.
b) Liquidity Reserve -$ 2,000,000 .
1) Funds are to be set-aside to provide cash flow for timing of revenues and expenditures. For example, while payroll costs are bi-weekly and 3
fairly predictable, state and county tax payments can vary . The City may also from time to time have major projects that are grant funded on a reimbursement basis that require large cash outlays. A " Liquidity Reserve" is established to provide the cash- on-hand needed in between large revenue payments and grant reimbursements and will alleviate the need for short- term borrowing .
2) If all or a portion of the Reserve is utilized, the Reserve will be restored to the original level as adopted within the next five years or whenever reasonably possible.
c) Local Economic Uncertainty Reserve· $ 500, 000
1) Funds are to be set aside for the purpose of stabilizing the delivery of City services during periods of operational budget deficits resulting from the conditions as described in the definition above " Economic Stabilization Reserve.
2) Use of the funds are allowable only when the City Council , upon the 4/51h vote of its membership , has approved the use of the fund . 3) If all or a portion of the Reserve is utilized, the Reserve will be restored to the original level as adopted within the next five years or whenever reasonably possible
d) Other Reserve Designations. The City Council may at any time designate specific fund balance levels for future development of projects which it has determined to be in the best long-term interests of the City. e) The City Manager must include a recommendation for the amounts to be appointed to these reserves during the annual budget process.
SECTION 2. Severability. The City Council hereby declares that, should any provision, section , subsection , paragraph, sentence, clause , phrase, or word of this Ordinance or any part thereof, be rendered or declared invalid or unconstitutional by any final court action in a court of competent jurisdiction or by reason of any preemptive legislation, such decision or action shall not affect the validity of the remaining section or portions of the Ordinance or part thereof. The City Council hereby declares that it would have independently adopted the rema ining provisions, sections , subsections, paragraphs, sentences, clauses, phrases, or words of this Ordinance irrespective of the fact that any one or more provisions, sections, subsections, paragraphs, sentences, clauses, phrases, or words may be declared invalid or unconstitutional .
SECTION 3. Publication. The City Clerk shall certify to the passage and adoption of this Ordinance and to its approval by the Mayor and shall cause the same to be published according to law.
4
PASSED, APPROVED, AND ADOPTED this 15th day of May 2012 .
MAYOR
ATTEST: APPROVED AS TO FORM:
City Clerk City Attorney
I, Mary Flandrick, City Clerk of the City of Temple City, hereby certify that the foregoing Ordinance No. 12-953 was introduced at the regular meeting of the City Council of the City of Temple City held on the_ day of __ 2012, and was duly passed, approved and adopted by said Council at the regular meeting held on , 2012 by the following vote:
AYES:
NOES:
ABSENT:
City Clerk
5
City Council Agenda Report
Agenda Item No. 9.c.
DATE: September 2, 2025
TO: Honorable Mayor and Members of the City Council
APPROVED BY: Rene Salas, City Manager
SUBMITTED BY: Ariana De La Cruz, Director of Community Services SUBJECT: CONSIDERATION AND APPROVAL OF THE 2025
"CHRISTMAS WISH TOY GIVEAWAY" EVENT DONATION
LETTER, AUTHORIZING TO INCLUDE THE CITY
COUNCILMEMBERS' SIGNATURES, AND THE
DISTRIBUTION OF DONATION LETTERS TO THE SOUTH EL
MONTE BUSINESS COMMUNITY
SUMMARY: The Community Services Department is requesting approval of the 2025 "Christmas Wish Toy Giveaway" event donation letter, authorizing to include the City Councilmembers' signatures, and distribution of the donation letters to the South El Monte business community.
RECOMMENDED ACTION: Staff recommends City Council:
1. Approve the 2025 "Christmas Wish Toy Giveaway" event donation letter;
2. Authorize to include the City Councilmembers' signatures; and
3. Authorize to distribute the donation letters to the South El Monte business community.
FISCAL/FINANCIAL IMPACT: The cost associated with the "Christmas Wish Toy Giveaway" event donation letter has been budgeted in the Fiscal Year 2025/2026 General Fund Christmas Wish account. The cost to produce and distribute the donation letters is approximately $1,857.00. Please find the chart below detailing the estimated cost.
Cost Associated with the Donation Letters
Item Description and Units Amount
Letter Supplies Paper, Envelopes, Labels $1,000.00
Postage $0.51 x 1680 Businesses $857.00
Estimated Total Cost $1,857.00
DISCUSSION: The City of South El Monte strives to provide families with the most entertaining and memorable holiday experience at the annual "Christmas Wish Toy Giveaway" event. The goal is to enhance morale for the upcoming holiday season by rewarding needy families with joyful activities, a snow play area, and wrapped gifts for all the children in attendance. Contributions from local businesses will be utilized to purchase toys for registered children between the ages of two (2) and thirteen (13) and a warm meal for all in attendance.
The 2025 Christmas Wish Toy Giveaway event will be held on Saturday, December 13, 2025, from 12:00 p.m. to 6:00 p.m. at the South El Monte Community Center.
ATTACHMENT(S):
A. 2025 Christmas Wish Toy Giveaway Letter
B. 2025 Christmas Wish Donation Form
ATTACHMENT A
CITY OF SOUTH EL MONTE
1415 SANTA ANITA AVENUE
South EL Monte, CA 91733
(626) 579-6540
Dear Community Partners:
The City of South El Monte strives to provide families with the most entertaining and memorable holiday experience at our annual “Christmas Wish Toy Giveaway” event. Our goal is to enhance morale for the upcoming holiday season by rewarding needy families with joyful activities and gifts for all the children in attendance.
As the holiday season approaches, expectations in the children’s hearts begin to rise. The City of South El Monte is seeking assistance from our business community to help spread a bit of holiday cheer to these needy families. Any monetary donation will be appreciated and used to purchase gifts for underprivileged children. We are also accepting any unwrapped, new toy donations that can be dropped off at the South El Monte Community Center located at 1530 Central Avenue.
Please save the date of Saturday, December 13, 2025, from 12:00 p.m. to 6:00 p.m. for our annual Christmas Wish Toy Giveaway event. We invite you to come see the joy and happiness your donation brings to our families at the South El Monte Community Center.
On behalf of the City of South El Monte and the families of our community, we would like to thank you in advance for your consideration. Should you have any questions regarding the “Christmas Wish Toy Giveaway” or any of the donation process please contact the Recreation Division at (626) 579-2043.
Thank you for your consideration, and we look forward to meeting you at the event.
Sincerely,
_______________________________ ______________________________ Mayor, Gloria Olmos Mayor Pro Tem, Hector Delgado
_____________________ ______________________ ________________________ Councilmember Councilmember Councilmember
Larry Rodriguez Rudy Bojorquez Manuel Acosta
ATTACHMENT B
City of South El Monte
Community Services Department
My Company/I wish to donate the following amount for the “Christmas Wish Toy Giveaway”
Bringing joy to underprivileged families in our community.
Please accept my donation in the amount of:
$150.00 _______ $300.00 _______ $500.00 _______
$1000.00 _______ Other $ _______
Company Name/ Person Name:_______________________________________ Address:__________________________________________________________ Phone:___________________________________________________________ Email:____________________________________________________________ Please Make Checks Payable to:
CITY OF SOUTH EL MONTE
Attention:
South El Monte Christmas Wish Toy Giveaway
1415 Santa Anita Ave.
South El Monte, CA 91733
Please mail back check and form in a different envelope than the one received in. Thank you.
City Council Agenda Report
Agenda Item No. 9.d.
DATE: September 2, 2025
TO: Honorable Mayor and Members of the City Council
APPROVED BY: Rene Salas, City Manager
SUBMITTED BY: Ariana De La Cruz, Director of Community Services SUBJECT: CONSIDERATION AND APPROVAL OF THE MANAGEMENT
OF FUNDS RAISED THROUGH THE FLAGS OF VALOR
PROGRAM
SUMMARY: Flags of Valor is a meaningful tribute presented by the City of South El Monte to honor our nation’s military heroes. This program raises vital funds to support local veterans in our community. City staff has identified several ways these funds can be distributed to provide direct assistance and resources to those who have served.
RECOMMENDED ACTION: Staff recommends City Council discuss and provide direction on the proposed options for the distribution of funds raised by the Flags of Valor program.
Option 1: Partner with a trusted veteran-serving non-profit or community-based organization to manage the funds. Requires formal agreement to ensure accountability and transparency.
Option 2: The City would collect, manage, and directly distribute the funds to support local veterans.
FISCAL/FINANCIAL IMPACT: No fiscal impact based on the assumptions below:
1. City staff time and equipment used for this program is minimal.
2. 100% of the donations raised are used to support veterans.
DISCUSSION: Flags of Valor is a meaningful tribute presented by the City of South El Monte to honor the courage, sacrifice, and service of our nation’s military heroes, including active-duty members, veterans, and those who have given their lives. Each year, the front lawn of Dean L. Shively Middle School is transformed into a stunning display of hundreds of American flags, with each flag dedicated to a service member by a family, friend, or community sponsor.
More than a powerful symbol of remembrance, this program also raises vital funds to
support local veterans in need. City staff has identified several ways these funds can be distributed to provide direct assistance and resources to those who have served. This year, the Flags of Valor program raised over $5,000.00 through business sponsorships and the sale of 50 flags from community members.
The purpose of the funds raised is to support veterans in need within the South El Monte community with resources such as:
• Emergency housing and food assistance
• Mental health and wellness support
• Job training and career resources
• Family and childcare assistance
• Healthcare access and community recognition
To ensure transparency and accountability in the use of funds, staff have identified two options for City Council consideration regarding fund management and distribution:
Staff report prepared by Nancy Rodriguez, Community Services Analyst.
ATTACHMENT(S):
None
City Council Agenda Report
Agenda Item No. 9.e.
DATE: September 2, 2025
TO: Honorable Mayor and Members of the City Council
APPROVED BY: Rene Salas, City Manager
SUBMITTED BY: Iyob Tessema, Director of Human Resources & Risk Management
SUBJECT: CONSIDERATION AND APPROVAL OF RESOLUTION NO.
25-078, CONSENTING TO THE APPOINTMENT OF
GERARDO MARQUEZ AS DIRECTOR OF COMMUNITY
DEVELOPMENT & PUBLIC WORKS AND APPROVAL OF
DIRECTOR OF COMMUNITY DEVELOPMENT & PUBLIC
WORKS EMPLOYMENT AGREEMENT
SUMMARY: Staff is asking the City Council to consent to the appointment of Gerardo Marquez as Community Development & Public Works Director and approve his employment agreement for services as Community Development & Public Works Director.
RECOMMENDED ACTION: Staff recommends City Council:
1. Adopt Resolution No. 25-078, approving the employment agreement between the City and Gerardo Marquez for the position of Director of Community Development & Public Works; and
2. Authorize the Mayor to execute the employment agreement.
FISCAL/FINANCIAL IMPACT: The Director of Community Development & Public Works position was budgeted for fiscal year 2025-2026. Mr. Marquez will receive a salary of $172,767.52 annually, which is Step A of the City’s current salary schedule for the position of Director of Community Development & Public Works. Any increases in subsequent years will be applied through performance reviews and/or salary adjustments. At this time, funds are available to administer the terms of the employment agreement.
DISCUSSION: The Director of Community Development & Public Works is an essential member of the City’s Executive Management Team and reports directly to the City Manager.
On April 15, 2025, the City Council approved the upgrade and restructuring of the position of Director of Community Development to incorporate oversight of the Department of Public Works forming a new consolidated role: Director of Community Development & Public Works. This revised position also included a revised compensation and benefits package.
The updated class specification encompasses full management responsibility for functions related to both Community Development and Public Works, including but not limited to Planning, Building Safety and Construction Management, Engineering, Streets, Grant Administration, and serving as a liaison to various Commissions and Committees.
This reclassification was part of a broader reorganization of City Administration aimed at effectively meeting the operational and governmental needs of the City.
The key terms and provisions of the proposed agreement for Mr. Marquez are: 1) Threeyear term; 2) Annual Base Salary of $172,767.52 ($14,397.2933 per month); 3) Car allowance in the amount of $600 per month; 4) One (1) months’ severance if terminated without cause within one (1) year, and Nine (9) months’ severance if terminated thereafter; and 5) Same employment benefits as those currently provided to the City’s other department heads.
ATTACHMENT(S):
A. Resolution No. 25-078
B. CD PW Director At-Will Contract FINAL
ATTACHMENT A
RESOLUTION NO. 25-078
A RESOLUTION OF THE SOUTH EL MONTE CITY COUNCIL
CONSENTING TO THE APPOINTMENT OF GERARDO
MARQUEZ TO THE POSITION OF DIRECTOR OF
COMMUNITY DEVELOPMENT & PUBLIC WORKS AND
APPROVAL OF THE DIRECTOR OF COMMUNITY
DEVELOPMENT & PUBLIC WORKS EMPLOYMENT
AGREEMENT
WHEREAS, it is the desire of the City Manager of the City of South El Monte (“City”) to appoint Gerardo Marquez to serve in the position of Director of Community Development & Public Works beginning on September 3, 2025, and approve the presented employment agreement; and
WHEREAS, pursuant to South El Monte Municipal Code section 2.64.040, appointment of City department heads “…shall be made by the city manager, subject to the consent of the city council[;]”and
WHEREAS, on April 15, 2025, the City Council approved the upgrade and restructuring of the position of Director of Community Development to incorporate oversight of the Department of Public Works forming a new consolidated role: Director of Community Development & Public Works; and
WHEREAS, the updated class specification encompasses full management responsibility for functions related to both Community Development and Public Works, including but not limited to Planning, Building Safety and Construction Management, Engineering, Streets, Grant Administration, and serving as a liaison to various Commissions and Committees. This reclassification was part of a broader reorganization of City Administration aimed at effectively meeting the operational and governmental needs of the City.
WHEREAS, the position of Director of Community Development & Public Works is now the department head of the City’s Community Development and Public Work’s Departments; and WHEREAS, the City requires the services of a Director of Community Development & Public Works; and
WHEREAS, Mr. Marquez has the required level of education, experience, skills and expertise to serve as the Director of Community Development & Public Works; and WHEREAS, based on Mr. Marquez’s executive and administrative qualifications, ability, and experience, the City Manager desires to employ Gerardo Marquez to serve as the Director of Community Development & Public Works for the City; and
WHEREAS, Mr. Marquez desires to perform and assume responsibility for the position of Director of Community Development & Public Works services to the City.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SOUTH EL MONTE DOES HEREBY FIND, RESOLVE, DETERMINE AND ORDER AS FOLLOWS:
SECTION 1. The aforementioned recitals are incorporated herein by reference as set forth in full herein.
SECTION 2. The City Council hereby consents to the appointment of Gerardo Marquez as Director of Community Development & Public Works, which shall include a salary at Step A of the City’s current and approved salary schedule for the position of Director of Community Development & Public Works at an annual salary of One Hundred Seventy-Two Thousand Seven Hundred Sixty-Seven Dollars and Fifty-Two Cents ($172,767.52).
SECTION 3. If any section, subsection, sentence, clause, or phrase of this resolution is for any reason held to be invalid or unconstitutional by a decision of any court of any competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Resolution.
The City Council hereby declares that it would have passed this Resolution, and each and every section, subsection, sentence, clause and phrase thereof not declared invalid or unconstitutional without regard to whether any portion of the ordinance would be subsequently declared invalid or unconstitutional.
SECTION 4. The City Clerk shall certify to the adoption of this Resolution.
SECTION 5. The Resolution shall take effect immediately upon its adoption by City Council.
PASSED, APPROVED AND ADOPTED this 2nd day of September 2025.
_____________________________
Gloria Olmos, Mayor
ATTEST:
___________________________
Adrian Garcia, MMC, City Clerk
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS:
CITY OF SOUTH EL MONTE )
I, Adrian Garcia, City Clerk of the City of South El Monte, hereby certify that the foregoing Resolution, being Resolution No. 25-078, was duly passed and approved by the City Council of the City of South El Monte at a regular meeting of said Council held on the 2nd day of September 2025, and that said Resolution was adopted by the following vote:
AYES: Councilmember(s):
NOES: Councilmember(s):
ABSENT: Councilmember(s):
ABSTAIN: Councilmember(s):
________________________________
Adrian Garcia, MMC, City Clerk
ATTACHMENT B
CITY OF SOUTH EL MONTE
DIRECTOR OF COMMUNITY DEVELOPMENT & PUBLIC WORKS EMPLOYMENT
AGREEMENT
This Director of Community Development & Public Works EMPLOYMENT AGREEMENT (“Agreement”) is entered into the 3rd day of September 2025, by and between the CITY OF SOUTH EL MONTE, a general law city and municipal corporation (“City”) and Gerardo Marquez, an individual (“Employee”).
R E C I T A L S
WHEREAS, it is the desire of the City Manager of the City of South El Monte (hereinafter the "City Manager") to appoint an individual to serve in the position of Director of Community Development & Public Works effective September 03, 2025; and WHEREAS, pursuant to South El Monte Municipal Code §2.64.030, appointment of City department heads “. . . shall be made by the city manager, subject to the consent of the city council[;]” and
WHEREAS, the position of Director of Community Development & Public Works is the department head of the City’s Community Development and Public Works Departments; and WHEREAS, pursuant to South El Monte Municipal Code §2.64.030, City department heads hold employment “at and during the pleasure of the city manager [;]” and WHEREAS, the City requires the services of a Director of Community Development & Public Works; and
WHEREAS, the duties of the Director of Community Development & Public Works are set forth in Exhibit “A” to this Agreement; and
WHEREAS, Employee was hired as a Planning Manager on October 16, 2023; and WHEREAS, based on Employee’s executive and administrative qualifications and ability, the City Manager desires to employ Employee to serve as the Director of Community Development & Public Works for the City; and
WHEREAS, Employee has the required level of education, experience, skills and expertise to serve as the Director of Community Development & Public Works of the City; and WHEREAS, Employee desires to perform and assume responsibility for the provision of Director of Community Development & Public Works services to the City; and WHEREAS, the parties wish to establish the terms and conditions of Employee’s provision of Director of Community Development & Public Works professional services to the City through this Agreement.
NOW, THEREFORE, in consideration of the mutual covenants contained herein, the City and Employee hereby agree as follows:
AGREEMENT
1.0 EMPLOYMENT & DUTIES
1.1 Duties. City hereby employs Employee as Director of Community Development & Public Works for the City to perform the functions and duties of the Director of Community Development & Public Works position as described in Exhibit “A,” and to perform such other legally permissible and proper duties and functions as the City Manager shall, from timeto-time, direct or assign. The City reserves the right to adopt and/or amend the job description and functions and duties for the position of Director of Community Development & Public Works, as it deems necessary and appropriate, without requiring Employee’s acquiescence or an amendment of this Agreement. Employee agrees to perform all such functions and duties to the best of Employee’s ability and in an efficient, competent, and ethical manner.
1.2 Work Schedule. It is recognized that Employee is expected to engage in the hours of work that are necessary to fulfill the obligations of the position, must be available at all times, and must devote a great deal of time outside the normal office hours to the business of the City. Employee acknowledges that proper performance of the duties of Director of Community Development & Public Works will require Employee to generally observe normal business hours, as set by the City and may be duly revised from time-to-time (currently 7:00 a.m. to 5:30 p.m., Monday through Thursday), and will also often require the performance of necessary services outside of normal business hours. Notwithstanding the foregoing, the City will permit Employee such reasonable “time off” as is customary for exempt employees of the City, so long as the time off does not interfere with normal business. Employee’s compensation (whether salary or benefits or other allowances) is not based on hours worked, and Employee shall not be entitled to any compensation for overtime.
1.3 Other Activities. Employee shall focus his professional time, ability, and attention to City business during the term of this Agreement. Employee shall not engage, without the express prior written consent of the City Manager, in any other business duties or pursuits whatsoever, or directly or indirectly render any services of a business, commercial, or professional nature to any other person or organization, whether for compensation or otherwise, that is or may be competitive with the City, that might cause a conflict-of-interest with the City, or that otherwise might interfere with the business or operation of the City or the satisfactory performance of the functions and duties of Director of Community Development & Public Works.
1.4 Employment Status. Upon appointment to the Director of Community Development & Public position, Employee shall serve at the will and pleasure of the City Manager and understands that he shall be an “at-will” employee without recourse to bumping or other demotion rights and shall be subject to summary dismissal without any right of notice or hearing except as expressly provided in this Agreement, including any so-called due process predisciplinary “Skelly” hearing. The City may terminate Employee at any time in accordance with Section 3.4 below.
1.5 City Documents. All data, studies, reports and other documents prepared by
Employee while performing his duties during the term of this Agreement shall be furnished to and become the property of the City, without restriction or limitation on their use. All ideas, memoranda, specifications, plans, procedures, drawings, descriptions, computer program data, input record data, written information, and other materials either created by or provided to Employee in connection with the performance of this Agreement shall be held confidential by Employee to the extent permitted by applicable law, except as may be required by any governmental agency or court of competent jurisdiction. Such materials shall not be used by Employee, without the prior written consent of the City Manager, for any purposes other than the performance of his duties. Additionally, no such materials may be disclosed to any person or entity not connected with the performance of services under this Agreement, except as required by (a) law, (b) any governmental agency, (c) subpoena, or (d) an order issued by a court of competent jurisdiction.
1.6 Exclusion from Classified Service. Employee understands, acknowledges, and agrees that he is not included within the classified service of the City pursuant to South El Monte Municipal Code § 2.64.010(H)(7).
1.7 Exempt Status. Employee acknowledges and agrees that his position is that of an exempt employee for the purposes of the Fair Labor Standards Act and any other applicable state or federal law or regulation.
2.0 COMPENSATION
2.1 Compensation. For the services rendered pursuant to this Agreement, Employee’s base compensation shall be one hundred seventy-two thousand, seven hundred sixtyseven dollars and fifty-two cents ($172,767.52) annually (“Salary”), which shall be paid on a prorated basis bi-weekly at the same time as other employees of the City are paid. Such Salary shall be adjusted for payroll taxes, workers’ compensation, and other payroll-related liability costs.
2.2 Annual Salary Review. The City Manager and Employee agree to conduct an annual salary review concurrently with any annual performance evaluation conducted pursuant to Section 5.2. Following the annual performance review, the City Manager may increase Employee’s salary within the Council-approved salary range for the position of Director of Community Development & Public Works. The City Manager and/or the Employee reserve the right to defer or refuse any or all part of any base salary adjustment if either party determines that the fiscal state of the City warrants such action.
3.0 TERM
3.1 Commencement & Effective Date. Employee commenced his services hereunder at 12:01 a.m. Pacific daylight savings time on September 03, 2025, which will also be deemed the effective date of this Agreement (“Effective Date”).
3.2 Term. The term of this Agreement will be for three (3) years following the Effective Date (“Term”) (i.e. until 11:59 p.m. on September 03, 2028) and, thereafter, the term of this Agreement may be extended for additional one (1) year term(s) as Employee and City Manager mutually agree, as evidenced by a writing signed by both parties.
3.3 Termination by Employee. Employee may terminate this Agreement at any time, provided Employee provides the City Manager with at least thirty (30) days’ advance written notice. In the event Employee terminates this Agreement, Employee expressly agrees that he shall not be entitled to any severance pay.
3.4 Termination by City. The City Manager may terminate this Agreement at any time with or without cause, by providing written notice. The City Manager’s right to terminate Employee pursuant to this Section 3.4 shall not be subject to or in any way limited by the City’s Personnel Rules or past City practices related to the employment, discipline, or termination of the City’s employees. Employee expressly waives any rights provided for the Community Development & Public Works Director under the City’s Personnel Rules, Municipal Code, or under other state or federal law to any other form of pre- or post-termination hearing, appeal, or other administrative process pertaining to termination. Nothing herein, however, shall be construed to create a property interest, where one does not exist by rule of law, in the position of Community Development & Public Works Director. Upon appointment to the Community Development & Public Works Director position, Employee shall be an at-will employee serving at the pleasure of the City Manager.
(a) Termination by City for Cause. The City may terminate this Agreement for cause at any time by providing Employee with five (5) business days’ written notice of the termination for cause and the facts and grounds constituting such cause. The term “cause” shall be defined to include any misconduct materially related to performance of official duties, including but not be limited to any of the following: 1) Breach of this Agreement, 2) Willful or persistent material breach of duties, 3) Résumé fraud or other acts of material dishonesty, 4) Unauthorized absence or leave, 5) Conviction of a misdemeanor involving moral turpitude (i.e., offenses contrary to justice, honesty, or morality) or conviction of a felony under California law, 6) Violation of the City’s anti-harassment policies and/or a finding that legally prohibited personal acts of harassment against a City official or employee or legally prohibited personal acts of discrimination against a City official or employee has occurred, 7) Violation of the City’s Municipal Code, Ordinances, Rules, and Regulations, including but not limited to the City’s Personnel Rules, 8) Use or possession of illegal drugs, 9) Engaging in conduct tending to bring embarrassment or disrepute to the City, 10) Any illegal or unethical act involving personal gain, 11) A pattern of repeated, willful and intentional failure to carry out materially significant and legally constituted direction or policy decisions of the City Manager, 12) Gross misfeasance or gross malfeasance, and 13) “abuse of office or position” as defined in Government Code §53243.4 (i.e., waste, fraud, and violation of the law under color of authority and crimes against public justice, including crimes involving bribery and corruption). For any of the foregoing, the City may, in its discretion, place Employee on paid or unpaid administrative leave until resolution. If the City terminates for cause this Agreement and the services of Employee hereunder, the City shall have no obligation to pay severance.
(b) Termination by City Manager Without Cause. The City Manager may terminate Employee at any time without cause but rather based upon management reasons such as implementing the City’s goals or policies, including but not limited to: (i) change of administration, or (ii) incompatibility of management styles. In the event Employee is terminated without cause, Employee expressly agrees that he shall not be entitled to any severance pay as the result of the termination of this Agreement except as provided in Section 4.1 below.
4.0 SEVERANCE
4.1 Severance Pay. In the event Employee is terminated without cause within one (1) year of the Effective Date and does not challenge such termination, including but not limited to by means of civil or administrative claim, then City shall pay to Employee severance in an amount equal to his monthly base Salary (as defined in Section 2 above, calculated on a per diem basis) then in effect multiplied by one (1), less applicable deductions and excluding deferred compensation or the value of any other benefits. If Employee is terminated without cause at any time later than one (1) year after the Effective Date and does not challenge such termination, including but not limited to by means of appeal or civil or administrative claim, then City shall pay to Employee severance in an amount equal to the monthly base salary of Employee then in effect multiplied by nine (9) excluding the value of any benefits.
Notwithstanding the foregoing, Government Code Section 53260 provides that all contracts of employment with a city must include a provision limiting the maximum cash settlement for the termination of the contract to the monthly salary (excluding benefits) multiplied by the number of months left on the unexpired term, but not more than 18 months if the unexpired term exceeds 18 months. Accordingly, should such proposed severance payment exceed the amount authorized to be paid under Government Code Section 53260, then the amount paid to Employee shall be reduced in the amount necessary to comply with such statute. (For example, if termination occurs with two (2) months left in the term, severance would be equal to the monthly base salary multiplied by two (2) rather than the three (3) months provided in this Section.)
4.2 No Severance Pay if Termination for Cause or Initiated by Employee. As provided in Section 3.4(a), should Employee be terminated for cause, the City shall have no obligation to pay the severance provided for in Section 4.1 above. As provided in Section 3.3, should Employee initiate termination of this Agreement, the City shall have no obligation to pay the severance provided for in Section 4.1 above. Furthermore, in the event this Agreement expires by its own term as provided in Section 3.2 above, then the City shall have no obligation to pay the severance provided for in Section 4.1 above.
4.3 Sole Rights. The severance rights provided in this Section 4.0 shall constitute the sole and only entitlement of Employee with respect to severance pay in the event of the termination, other than for cause. Employee expressly waives any and all other rights with respect to severance pay except as provided herein. Any and all severance rights are conditioned upon and in consideration for execution of the standard “Agreement of Separation, Severance, and General Release” attached hereto in form only as Exhibit “B.”
5.0 PERFORMANCE EVALUATIONS
5.1 Purpose. The performance review and evaluation process set forth herein is intended to provide review and feedback to Employee so as to facilitate a more effective management of the Community Development and Public Works Departments of the City. Nothing herein shall be deemed to alter or change the employment status of Employee (as set forth in Section
1.4 above), nor shall this Section 5.0 be construed as requiring “cause” to terminate this Agreement, or the services of Employee hereunder.
5.2 Annual Evaluation. The City Manager may, at his/her sole discretion, review and evaluate the performance of Employee annually within thirty (30) days after each anniversary of the Effective Date. In addition, Employee shall submit for the City Manager’s consideration, no later than December 1 of each year of the term of this Agreement, Employee’s proposed annual performance goals and objectives and incorporate the City Manager’s suggestions. Such review and evaluation, if any, will be conducted concurrently with an annual salary review, and in accordance with the purpose noted in Section 5.1 above.
5.3 Written Summary. The City Manager may, at his/her sole discretion, elect to provide a written summary of each performance evaluation to Employee within two (2) weeks following the conclusion of the review and evaluation process.
6.0 BENEFITS
6.1 Holiday. The City shall provide Employee with the following holidays with pay:
1. New Year 's Day
2. Martin Luther King Day
3. Presidents' Day
4. Cesar Chavez Day
5. Memorial Day
6. Independence Day
7. Labor Day
8. Columbus Day
9. Veterans' Day
10. Thanksgiving Day
11. Christmas Day
12. Employee's Birthday
13. Juneteenth Day
Cesar Chavez Day, Juneteenth Day, and Employee’s Birthday are not observed holidays. Employee shall earn one floating holiday for Cesar Chavez Day, Juneteenth Day, and Employee’s Birthday. Employee may use the floating holidays on any scheduled workday with prior City Manager approval. Employee shall not accrue more than three (3) floating holidays.
Upon Employee’s separation from City service for any reason, the City shall compensate Employee for any accrued floating holidays. The value of accrued floating holidays shall be calculated using Employee’s prevailing pay rate on the date of Employee’s separation from City service.
6.2 Administrative Leave. Employee will be granted 80 hours of administrative leave per fiscal year. Employee shall not accrue more than 80 hours of administrative leave.
Employee shall not use less than one (1) hour of administrative leave at any one time.
Administrative leave must be used and deducted from accruals on an hour-by-hour basis for time missed from normal work hours which for purposes of this section are deemed to be normal City operating hours. Upon Employee’s separation from City service for any reason, the City shall compensate Employee for any accrued administrative leave. The value of accrued administrative leave shall be calculated using Employee’s prevailing pay rate on the date of Employee’s separation
from City service.
6.3 Bereavement Leave. Employee shall be entitled to bereavement leave for a period not exceeding three (3) workdays for deaths within the Employee's immediate family.
Immediate family is defined as any relative by blood or marriage who is a member of the Employee's household (under the same roof), and the Employee's spouse, registered domestic partner, parents or stepparents; spouse's parents or stepparents; brothers, stepbrothers or halfbrothers; sisters, step-sisters or half- sisters; Employee's grandparents; spouse's grandparents; grandchildren; aunts and uncles, in-laws, regardless of the residence of the deceased. For purposes of compliance with Government Code section 12945.7, Employee shall be entitled to two additional days of bereavement leave (totaling five days), which will be unpaid unless Employee elects to use accrued vacation, sick, administrative, or floating holiday leave for pay on these days.
6.4 Time Off For Jury Duty. The City shall grant up to 22 business days off to Employee if the is required to serve on jury duty, with compensation at Employee's existing pay rate. The Employee shall remit to the City any money paid to his by the court for jury service.
6.5 Health Benefits. The City, only while it participates in the California Public Employees' Retirement System Medical and Hospital Care Plan (“PERS Plan”), shall make the following contributions towards the cost of medical insurance for Employee: the City will contribute directly to PERS an amount to be applied to the applicable PERS Plan monthly premium.
The City will contribute an amount equal to the actual monthly premium for the plan and applicable number of dependents (employee only, employee & 1 dependent or employee & 2 or more dependents), not to exceed the monthly premium rate established by Kaiser Permanente for its Family Health Plan. Employee will pay any premium amount above the maximum City contribution by payroll deduction. If Employee does not enroll in any medical insurance plan offered by the City, then in lieu of the City contribution to health benefits provided pursuant to this section 6.5 Employee shall instead receive a deferred compensation payment of $600 per month. To be eligible for the $600 deferred compensation payment, Employee must submit to the City written proof of duplicate medical insurance coverage. The City reserves the right to enhance, reduce, terminate, and amend or to otherwise change its health and other benefit programs at any time.
6.6 Vision and Dental Insurance. The City shall pay the monthly vision and dental insurance premiums for Employee and his eligible dependents.
6.7 Life Insurance, Accidental Death Insurance and Long-Term Disability Insurance: The City shall pay 100% of the cost of term life insurance equal to Employee's annual salary, accidental death and dismemberment insurance equal to Employee 's annual salary, and long-term disability insurance equal to two-thirds of Employee's monthly salary. The long-term disability insurance plan shall provide a 30-day benefit exclusion and benefit payments until the age of 70 years.
6.8 California Public Employees' Retirement System (“CalPERS”).
Employee is a “PEPRA” member and accordingly is covered by the 2% @ 62 CalPERS retirement formula. Employee will pay the mandatory CalPERS contribution rate for “PEPRA” member as determined by CalPERS, which currently the amount is 6.75%. If the mandatory CalPERS contribution rate for “Classic” second tier members changes, the Employee shall comply with the rate as may be determined by CalPERS.
6.9 Retiree Health Benefits. Should Employee retire from the City as a CalPERS eligible retiree, the City will contribute an amount toward the CalPERS medical premium that is equal to the amount required under the City's resolution electing coverage under the Public Employees Medical and Hospital Care Act (“PEMHCA”), which is the minimum amount required by the PEMHCA. The City shall have no obligation to make such contribution in the event it no longer participates in the CalPERS medical and hospital care program. Provided that Employee has reached the minimum age of 50 years of age and retired from the City as a CalPERS eligible retiree, he shall continue to be eligible to participate in the City's group medical, dental and vision care plans until age 65, contingent upon the health provider's acceptance. The full cost of any insurance selected by the retiree shall be borne by the retiree. As long as the retiree is enrolled in an insurance plan his eligible dependents may also enroll in the insurance plans as provided above. The retiree and/or dependent shall pay any cost of dependent insurance benefits.
6.10 Purchase of Home Office Equipment. The City will advance up to a total of $3,000 to Employee for the purpose of acquiring a personal computer and appurtenant types of office equipment which the Employee will utilize at his home to facilitate work production outside normal business hours. More than one such advance may be made, but at no time may the combined total of all outstanding advances exceed $3,000. Funds will be advanced only after the need for the equipment is verified and approved by the City Manager and a reimbursement agreement, approved by the City Attorney, is executed.
6.11 Reimbursement for Damage To Employee Vehicles. The City agrees to reimburse Employee in an amount not to exceed $200 per fiscal year for damages due to or caused by vandalism to Employee's vehicle while on City property during Employee's working hours. In order to be eligible for reimbursement, Employee must submit an incident report and a Sheriff’s report to the City Manager and Risk Manager regarding the incident causing the damage to the vehicle.
6.12 Education Reimbursement. The City will reimburse Employee for the cost of all books and tuition incurred by Employee while attending an accredited educational institution for those courses directly related to the Employee's scope of employment or which are contained within an approved curriculum of study that is directly related to the Employee's scope of employment. Tuition shall be reimbursed at rates up to the tuition rates of the California State University system. The City will reimburse the Employee for all classes the Employee completes with a grade of "C" or better provided Employee: i) provides a list of classes to the City Manager prior to each quarter or semester; ii) provides to the City Manager verification of the cost for tuition and books; and iii) provides to the City Manager certification of completion upon completion of the course(s).
6.13 Vacation Leave.
(a) Employee may accrue up to a maximum of 320 hours of unused vacation leave. Upon reaching 320 hours, Employee shall earn no additional vacation accrual until his balance of accrued but unused vacation leave is reduced below 320 hours. Upon a written administrative determination by the City Manager that work demands prevent Employee from using vacation time on a timely basis, the City Manager may permit Employee to exceed the maximum accrual cap by a specified amount and for a specified time, not to exceed 40 hours of
vacation time and not to exceed a duration of 6 months. The City Manager may also require a plan designed to bring Employee back into compliance with vacation accrual limitations. It is the responsibility of Employee to arrange for timely use or, to the extent available, cash conversion of vacation time well in advance of reaching the maximum accrual limit. (b) Employee shall not use less than one (1) hour of vacation leave at any one time. Vacation leave must be used and deducted from accruals on an hour-by-hour basis for time missed from normal work hours which for purposes of this section are deemed to be normal City operating hours.
(c) If Employee has accrued in excess of 250 hours, he may be paid for the excess vacation on a dollar-for-dollar basis twice per year at the end of the fiscal year or end of the calendar year subject to the following:
1. Employee must have taken minimum hours of vacation in the fiscal year so that at the end of the fiscal year the vacation accrual does not exceed 320 hours.
2. The payout must otherwise comply with any City rules and procedures pertaining to vacation leave cash out.
3. In the event vacation leave cash-out procedures are changed for other City employees, then Employee shall be subject to such updated vacation leave cash out procedures.
(d) Employee shall be credited with vacation leave at the following rates based upon the length of service:
1. Eight hours per month (accrued at the rate of four hours biweekly for 24 of the 26 pay periods annually) during the first five years of service;
2. Ten hours per month (accrued at the rate of five hours biweekly for 24 of the 26 pay periods annually) during the sixth through the tenth years of service;
3. Twelve hours per month (accrued at the rate of six hours biweekly for 24 of the 26 pay periods annually) during the 11th through 15th years of service; and
4. Thirteen hours per month (accrued at the rate of six and onehalf hours bi-weekly for 24 of the 26 pay periods annually) during the 16th and following years of service.
6.14 Sick Leave.
(a) Employee shall accrue sick leave at the rate of eight (8) hours of sick leave for each complete month of service.
(b) Employee may accrue an unlimited number of sick leave hours.
Employee shall not use less than one (1) hour of sick leave at any one time. Sick leave must be used and deducted from accruals on an hour-by-hour basis for time missed from normal work
hours which for purposes of this section are deemed to be normal City operating hours. (c) If Employee accrues in excess of 330 hours, Employee may opt to be paid for up to 80 hours on a dollar for-dollar basis one-time per fiscal year during the payroll that includes March 31st. In the event sick leave cash-out procedures are changed for other City employees, then Employee shall be subject to such updated sick leave cash out procedures. (d) Upon separation, Employee shall be eligible to receive monetary compensation for any unused sick leave based on the table below. Years of service shall be calculated based on the Employee's anniversary date.
Years of Service Value of Sick Leave
0-4 years 0%
5 - 10 years 10%
11 - 15 years 15%
16 years and above 20%
6.15 Deferred Compensation. City shall contribute $300.00 per month into a qualified 457 plan.
6.16 Cellular Phone. At no cost to Employee, City shall provide Employee with the use of a City-owned cellular phone. Employee shall reimburse City for all cell phone charges incurred for personal use not related to the performance of his job.
6.17 Automobile Allowance.
(a) City shall provide to Employee a monthly automobile allowance of $600. Such amount is intended to reimburse Employee for all costs associated with the use of Employee's automobile for City business, including but not limited to all applicable costs of automobile liability insurance, maintenance, operating expenses, depreciation, and interest. (b) Employee shall maintain all records required by applicable California and federal law concerning use of such automobile, including without limitation records to substantiate personal and City-related use of such automobile. (c) Employee shall maintain automobile liability insurance policy with $100,000/300,000/50,000 maximum coverage, combined single limit coverage against any injury, death, loss, or damage as a result of wrongful or negligent acts arising out of the operation of the automobile. Unless otherwise required by the City, Employee will maintain a policy with such coverage and limits throughout the term of this Agreement. If City requires Employee to secure and maintain an insurance policy with greater coverage than said coverage set forth in the insurance policy currently insuring Employee, and as a result of such requirement Employee's premium cost for such policy containing greater coverage is higher than the premium cost of his insurance policy, City shall pay the difference. Employee shall name City, and its Council
members, officials, and employees as additional insured on his policy; and deliver to City copies of such insurance endorsements and certificate of insurance. Such insurance policy shall provide that the insurance coverage shall not be canceled, reduced, or otherwise modified by Employee or by Employee 's insurance carrier without at least 30 days prior written notice, served on City personally by said insurance company.
6.18 Changes in Compensation and Benefits. Employee acknowledges that the City Council may in the future adopt a resolution establishing compensation and benefits for the City’s executive employees, including Employee and department heads, which may reduce the level of compensation (exclusive of Employee’s base salary), or benefits provided. In the event the level of compensation or benefits provided to Employee changes (whether by increase or decrease), the Parties agree that such changes shall not be deemed material or a breach of this Agreement.
7.0 EXPENSE REIMBURSEMENT
The City recognizes that Employee may incur certain expenses of a non-personal and jobrelated nature in performance of the duties of the position of Director of Community Development & Public Works. The City agrees to reimburse the actual cost of such expenses, which are authorized for reimbursement and incurred and submitted according to the City’s normal expense approval and reimbursement procedures. To be eligible for reimbursement, all expenses must be supported by an appropriate receipt therefore and submitted within time limits established by the City, in accordance with AB 1234 and any applicable City ordinances, resolutions, rules, policies or procedures.
8.0 BONDS AND INDEMNIFICATION
8.1 Indemnification. To the extent mandated by the California Government Code, the City with legal counsel of City’s choosing shall defend, hold harmless, and indemnify Employee against any tort, professional liability, claim or demand, or other legal action arising out of an alleged act or omission occurring in the performance of Employee’s services under this Agreement. This section shall not apply to any intentional tort or crime committed by Employee, to any action outside the course and scope of the services provided by Employee under this Agreement, or any other intentional or malicious conduct or gross negligence of Employee.
8.2 Bonds. City shall bear the full cost of any fidelity or other bonds, which may be required in the performance of Employee’s services under this Agreement.
9.0 GENERAL PROVISIONS
9.1 Entire Agreement. This Agreement represents the entire agreement between the parties and supersedes any and all other agreements, either oral or in writing, between the parties with respect to Employee’s employment by the City and contains all of the covenants and agreements between the parties with respect to such employment. Each party to this Agreement acknowledges that no representations, inducements, promises or agreements, orally or otherwise, have been made by either party, or anyone acting on behalf of either party, which are not embodied herein, and that no other agreement, statement or promises not contained in this Agreement shall be valid or binding upon either party.
9.2 Amendment. This Agreement may be amended at any time by the mutual consent of the parties by an instrument in writing, which amendment shall require City Council approval, except where City Manager approval is expressly authorized herein.
9.3 Notices. Any notice required or permitted by this Agreement shall be in writing and shall be personally served or shall be sufficiently given when served upon the other party as sent by United States Postal Service, postage prepaid and addressed as follows:
To City: To Employee:
City Manager Gerardo Marquez
City of South El Monte [Employee Adress]
1415 Santa Anita Ave.
South El Monte, California 91733
Notices shall be deemed given as of the date of personal service or upon the date of deposit in the course of transmission with the United States Postal Service.
9.4 Conflicts Prohibited. During the term of this Agreement, Employee shall not engage in any business or transaction or maintain a financial interest which conflicts, or reasonably might be expected to conflict, with the proper discharge of Employee’s duties under this Agreement. Employee shall comply with all requirements of law, including but not limited to, Sections 87100 et seq., Section 1090 and Section 1125 of the Government Code, and all other similar statutory and administrative rules.
9.5 Effect of Waiver. The failure of either party to insist on strict compliance with any of the terms, covenants, or conditions of this Agreement by the other party shall not be deemed a waiver of that term, covenant, or condition, nor shall any waiver or relinquishment of any right or power at any one time or times be deemed a waiver or relinquishment of that right or power or waiver for all or any other times.
9.6 Agreement to Mediation. Before initiating litigation over any dispute about matters covered by this Agreement, the City and Employee agree that they will submit to voluntary mediation in accordance with procedures to be mutually agreed by them. Nothing herein shall be construed to relieve either party or be deemed to constitute a waiver by either part of their respective rights and obligations under Government Code section 810 et seq.
9.7 Severability. If any provision in this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions shall nevertheless continue in full force without being impaired or invalidated in any way.
9.8 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California, which are in full force and effect as of the date of execution and delivery by each party hereto.
9.9 AB 1344. Assembly Bill 1344, which was subsequently enacted as Government Code §§ 53243 - 53243.4, sought to provide greater transparency in local government and institute certain limitations on compensation paid to local government executives. These statutes also require that contracts between local agencies and its employees include provisions
requiring an employee who is convicted of a crime involving an abuse of her/his office or position to provide reimbursement to the local agency for the following forms of payment: (i) paid leave salary; (ii) criminal defense costs; (iii) cash settlement payments; and (iv) any non-contractual settlement payments. Accordingly, the Parties agree that it is their mutual intent to fully comply with these Government Code sections and all other applicable law as it exists as of the date of execution of this Agreement and as such laws may be amended from time to time thereafter.
Specifically, the following Government Code sections are called out and hereby incorporated by this Agreement:
§53243. Reimbursement of paid leave salary required upon conviction of crime involving office or position.
§53243.1. Reimbursement of legal criminal defense upon conviction of crime involving office or position.
§53243.2. Reimbursement of cash settlement upon conviction of crime involving office or position.
§53243.3. Reimbursement of noncontractual payments upon conviction or crime involving office or position.
§53243.4. "Abuse of office or position" defined.
Employee represents that Employee has reviewed, is familiar with, and agrees to comply fully with each of these provisions if any of these provisions are applicable to Employee, including that Employee agrees that any cash settlement or severance related to a termination that Employee may receive from the City shall be fully reimbursed to the local agency if Employee is convicted of a crime involving an abuse of Employee's office or position. The Government Code provisions referenced in this section are attached hereto in Exhibit “C”.
9.10 Independent Legal Advice. The City and Employee represent and warrant to each other that each has received legal advice from independent and separate legal counsel with respect to the legal effect of this Agreement, or has had the opportunity to do so, and the City and Employee further represent and warrant that each has carefully reviewed this entire Agreement and that each and every term thereof is understood and that the terms of this Agreement are contractual and not a mere recital. This Agreement shall not be construed against the party or its representatives who drafted it or who drafted any portion thereof.
IN WITNESS WHEREOF, the City of South El Monte has caused this Agreement to be signed and executed on its behalf by its Mayor, and duly attested by its officers thereunto duly authorized, and Employee has signed and executed this Agreement, all in triplicate.
CITY OF SOUTH EL MONTE
Gloria Olmos, Mayor
ATTEST:
Adrian Garcia, MMC, City Clerk
APPROVED AS TO FORM:
Susie Altamirano, City Attorney
EMPLOYEE
Gerardo Marquez
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EXHIBIT “A”
CITY OF SOUTH EL MONTE
DIRECTOR OF COMMUNITY DEVELOPMENT & PUBLIC WORKS
At-Will, Exempt
DEFINITION
Under direction from the City Manager, serves as a member of the City's executive management team; plans, directs, and coordinates the activities of the Community Development and Public Works Departments, which includes Planning, Building and Safety, Housing, Code Enforcement, Public Safety, Municipal Engineering, Field Services, Facilities, Fleet Management, Capital Improvement, Landscape, and Street Maintenance. He/She will develop and administer the department budget; establishes and maintains liaison to the Planning Commission and other committees as needed, the general public; well versed in the principal methods and practices of economic development that includes strong negotiating and facilitation skills; have familiarity with the fundamentals of real-estate analysis including financial and economic review processes; performs other duties as assigned.
SUPERVISION RECEIVED AND EXERCISED
Supervision is received from the City Manager. Supervision is exercised over Community Development & Public Works Department staff.
ESSENTIAL DUTIES
Assumefullmanagement responsibility for both Departmental Services and Duties may include, but are not limited to, the following:
• Plans, organizes, and directs Community Development operations including current and advanced planning, environmental planning (CEQA compliance), building and safety plan check, permitting, public service counter operations, building and grading inspections, business license program and inspections, and housing programs to achieve goals within available resources;
• Enhance and maintain successful programs and projects to help shape the growth and development of the City’s infrastructure;
• Obtain and manage state and federal grant monies for these and other projects; • Oversee and review the engineering services activities including engineering design, development review, CIP planning and construction management; • Understand Budgetary practices and economics in the field of Planning and economic development, direct the forecast of funds needed for staffing, equipment, materials and supplies, monitor and approve expenditures and implement mid-year adjustment;
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• Develop specifications and bid documents for a variety of public works and public utilities-related designs, constructions and maintenance projects, recommend contract awards, negotiate contract provisions and coordinate, review, inspect, monitor, and approve contractor’s performance;
• Manage the application process for acquiring and administering County, State, and Federal Grants;
• Represents the Community Development and Public Works Departments to other line departments, elected officials, and outside agencies and organizations; • Courts developers and businesses and negotiate contracts and agreements; • Supervise and coordinate the technical research required in the economic & public works review process;
• Develop and Present highly technical & analyzed information, studies and reports, as well as ordinances, resolutions, and staff reports clearly and concisely to various divisions, commissions, City Council and lay groups orally and in writing; • Serves as Executive Officer of the City’s Planning Commission; provide full administration and management of the agenda and projects in accordance with the rules as set forth in the Brown Act;
• Manages online customer services to the public and business community; • Hires, trains, motivates, evaluates, disciplines, plans and organizes workloads for assigned staff and consultants;
• Analyzes local, State and Federal legislation, advises and develops City policy in the areas of planning, economic development, public works and public infrastructure; • Oversees Citywide regulatory programs including the compliance reporting to various State and federal agencies; maintains the City’s General Plan and Zoning Code; • Engages intergovernmental organizations and represents the City in Community Development and Public Works forums;
• Perform a variety of public relations and outreach work related to community development, redevelopment, planning and public works activities; • Generates private sector investment and economic development interest in the revitalization of properties in the City by working with real estate brokers, merchant builders and private investment firms;
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• Oversee code enforcement and public safety activities and ensure compliance with appropriate laws, ordinances, and regulations;
• Evaluates business processes and implements modernization strategies where needed; develops and leads staff to implement short and long-range plans and projects; assigns and coordinates staff to support year-round City and non-City special events; • Manages the City’s Housing Programs including the implementation of State grant funds; • Responds to public inquiries about community development, planning/building, Public Works and zoning regulations and ordinances;
• Attend evening and weekend events and/or meetings; and • Perform other duties as assigned by the City Manager.
JOB REQUIREMENTS
Knowledge:
• Principles and practices of Public Administration, Organization Management; • Principles, methods, and procedures of City Planning, municipal public works, designing, maintenance, construction, Streets, Utilities and maintenance programs;
• Budget Techniques;
• City Municipal Code, General Plan, Subdivision Map Act; • State and Federal regulations and legislation;
• Principles of urban design, planning and zoning laws, land develop process; • Adept regulation research, English Language usage, writing and interpretation skills;
• Marketing and public Relations, principles, and techniques; • Technology systems and relevant software applications; • Supervise, evaluate, and direct assigned staff;
• Initiate, negotiate, and/or review complex development proposals; • Adapt in a high-volume, fast-paced working atmosphere with multiple priorities; • Develop comprehensive plans to meet future City needs/services; • Deal constructively with conflict and develop effective resolutions; and • Oversee and coordinate consulting engineers effectively.
Competencies:
• Project Management – Ensures clear definition of project goal and criteria for success.
• Strategic View – Focuses on the future and where current trends will lead. • Managing Change – Involves key stakeholder in planning and decision making. • Process Improvement – Controlling and Improving processes and workflow.
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• Organizational Design and Structure – Evaluates alternative organizational designs and selects the one best suited to meeting customer needs. • Organizational Savvy – Understands the inner workings and interrelationships of the organization.
• Fiscal Acumen – Spends organizational funds wisely and strategically. • Managing Performance – Sets and aligns individual performance goals with the goals of the unit and the overall organization.
• Empowering Others – Allocates responsibility to others according to their abilities and opportunities for development.
• Leadership – Creates a positive work environment in which all are motivated to do their best.
• Handling Conflict – Deals with interpersonally or politically challenging situations calmly and diplomatically, diffusing tension.
• Influencing – Persuades others to consider and adopt a new position or attitude on a topic.
• Presentation Skill – Delivers clear, organized, and persuasive messages. • Innovation – Readily spots/identifies current opportunities for improvement. • Gathering and Analyzing Data – Organizes, codes, aggregates, and disaggregates data for analysis and produces data that can be trusted.
MINIMUM QUALIFICATIONS:
Experience:
Five (5) years increasingly responsible experience in urban planning. Public Administration, Economics, Engineering or closely related field. A Master’s Degree in an applicable field is highly desirable. At least three years of increasingly responsible professional experience in the public service sector, and in supervisory management capacity. Demonstrated commitment to collaboration, innovation, open and transparent communication, and fiscal management. Management certifications from accredited universities or institutions in also a plus.
Education:
Bachelor’s degree in land-use planning, urban planning, public administration, or a closely related field. A Master’s degree is preferred.
Licenses and Certificates:
Possession of a valid Class C California State Driver’s License at the time of employment and continuously throughout employment.
PHYSICAL DEMANDS AND WORKING CONDITIONS
The physical demands and working conditions described here are representative of those that must be met by an employee to successfully perform the essential functions of this job.
Reasonable accommodations may be made to enable individuals with disabilities to perform the essential functions.
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Physical Demands:
• Hand-eye coordination is necessary to operate computers and various pieces of office equipment.
• Frequently required to talk or hear.
• Sit; use hands to finger, handle, feel or operate objects, tools, or controls. • Reach with hands and arms.
• Occasionally required to stand or walk.
• Occasionally lift and/or move up to 25 pounds.
• Vision abilities required for close vision, distance vision, peripheral vision, depth perception, and the ability to adjust focus.
Working Conditions:
• Sedentary, office settings.
• Some outdoor work is required in the inspection of various land use developments and construction sites.
• Exposure to weather conditions including wet and/or humid conditions, or airborne particles.
• Noise Level in the work environment is usually quiet in the office, and moderate in the field.
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EXHIBIT “B”
AGREEMENT OF SEPARATION, SEVERANCE, AND GENERAL RELEASE
1. PARTIES
This Agreement of Separation, Severance, and General Release (hereinafter referred to as the “AGREEMENT”) is entered into by and between the City of South El Monte, a general law city and municipal corporation (hereinafter referred to as “THE CITY”), and Gerardo Marquez, an individual (hereinafter referred to as “EMPLOYEE”).
2. RECITALS
2.1. EMPLOYEE was hired by THE CITY as an at-will Director of Community Development & Public Works effective September 03, 2025, serving at the pleasure of the City Manager of THE CITY pursuant to a written contract, a copy of which is attached hereto as Exhibit “A” (“THE CONTRACT”).
2.2. THE CITY and EMPLOYEE desire that EMPLOYEE resign and enter into a severance agreement whereby EMPLOYEE receives severance compensation in exchange for executing a general release and waiver of any and all claims that EMPLOYEE may have against THE CITY, including but not limited to its elected and non-elected officials, employees, attorneys, and agents. Accordingly, the parties hereto intend by this AGREEMENT to mutually conclude any and all employment relationships between THE CITY and EMPLOYEE by means of EMPLOYEE’s voluntary separation as of ______, ____. This AGREEMENT sets forth the full and complete terms and conditions concluding EMPLOYEE’s employment relationship with the CITY and any obligations related thereto, including any provided under THE CONTRACT.
2.3 In accordance with this AGREEMENT and with applicable state and federal laws, EMPLOYEE acknowledges that EMPLOYEE has been advised of EMPLOYEE’s postemployment rights, including but not limited to, EMPLOYEE’s rights under the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”), the Employee Retirement Income Security Act of 1974 (“ERISA”), and the Health Insurance Portability and Accountability Act of 1996 (“HIPAA”).
3. CONSIDERATION
3.1 EMPLOYEE shall receive payment to him at the time of his voluntary separation all earned salary, accrued fringe benefits as detailed in THE CONTRACT, and/or all other wage compensation/benefits owed to EMPLOYEE upon separation of employment, as required by law or THE CONTRACT or any other agreement with THE CITY.
3.2. In exchange for the waivers and releases set forth herein, THE CITY shall also cause to be paid to EMPLOYEE an additional compensatory payment by means of severance, settlement and release in the form of a lump sum amount of ______as set forth in THE CONTRACT in the form of a check made payable to EMPLOYEE to be mailed to EMPLOYEE at EMPLOYEE’s home address via certified mail return receipt requested after the EFFECTIVE DATE (as defined below) of this AGREEMENT.
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3.3 In exchange for the severance payment provided for herein, EMPLOYEE, and on behalf of EMPLOYEE’s spouse, heirs, representatives, successors, and assigns, hereby releases, acquits, and forever discharges THE CITY, and each of its predecessors, successors, assigns, officials, employees, representatives, agents, insurers, attorneys, and all persons and entities acting by, though, under, or in concert with any of them, and each of them (hereinafter referred to as “THE CITY PARTIES”), from any and all claims, charges, complaints, contracts, understandings, liabilities, obligations, promises, benefits, agreements, controversies, costs, losses, debts, expenses, damages, actions, causes of action, suits, rights, and demands of any nature whatsoever, known or unknown, suspected or unsuspected, which EMPLOYEE now has or may acquire in the future, or which EMPLOYEE ever had, relating to or arising out of any act, omission, occurrence, condition, event, transaction, or thing which was done, omitted to be done, occurred or was in effect at any time from the beginning of time up to and including the date of this AGREEMENT (hereinafter referred to collectively as “CLAIMS”), without regard to whether such CLAIMS arise under the federal, state, or local constitutions, statutes, rules or regulations, or the common law. EMPLOYEE expressly acknowledges that the CLAIMS forever barred by this AGREEMENT specifically include, but are not limited to, claims based upon any alleged breach of THE CONTRACT or any other agreement of employment, any demand for wages, overtime or benefits, any claims of violation of the provisions of ERISA, COBRA or HIPAA, any alleged breach of any duty arising out of contract or tort, any alleged wrongful termination in violation of public policy, any alleged breach of any express or implied contract for continued employment, any alleged employment discrimination or unlawful discriminatory act, or any claim or cause of action including, but not limited to, any and all claims whether arising under any federal, state or local law prohibiting breach of employment contract, wrongful termination, or employment discrimination based upon age, race, color, sex, religion, handicap or disability, national origin or any other protected category or characteristic, and any and all rights or claims arising under the California Labor Code or Industrial Welfare Commission Wage Orders, the Federal Fair Labor Standards Act, the California Fair Employment and Housing Act, California Government Code §§12900 et seq., the Americans With Disabilities Act, Title VII of the Civil Rights Act of 1964, the Public Safety Officers Procedural Bill of Right Act, and any other federal, state, or local human rights, civil rights, or employment discrimination or employee rights statute, rule, or regulation to the extend allowed by applicable law.
4. SPECIFIC ACKNOWLEDGMENT OF WAIVER OF CLAIMS UNDER
ADEA AND OWBPA
The Age Discrimination in Employment Act of 1967 (hereinafter referred to as the “ADEA”) makes it illegal for an employer to discharge any individual or otherwise discriminate with respect to the nature and privileges of an individual’s employment on the basis that the individual is age forty (40) or older. The Older Workers Benefit Protection Act (hereinafter referred to as the “OWBPA,” 29 U.S.C. § 626 et seq., Pub L 101-433, 104 Stat. 978 (1990)) further augments the ADEA and prohibits the waiver of any right or claim under the ADEA, unless the waiver is knowing and voluntary. By entering into this AGREEMENT, EMPLOYEE acknowledges that he knowingly and voluntarily, for just compensation in addition to anything of value to which EMPLOYEE was already entitled, waives and releases any rights he may have under the ADEA and/or OWBPA. EMPLOYEE further acknowledges that he has been advised and understands, pursuant to the provisions of the ADEA and OWBPA, that:
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(a) This waiver/release is written in a manner understood by EMPLOYEE; (b) EMPLOYEE is aware of, and/or has been advised of, her/his rights under the ADEA and OWBPA, and of the legal significance of her/his waiver of any possible claims he currently may have under the ADEA, OWBPA and/or similar age discrimination laws; (c) EMPLOYEE is entitled to a reasonable time of at least twenty-one (21) days within which to review and consider this AGREEMENT and the waiver and release of any rights he may have under the ADEA, the OWBPA and similar age discrimination laws; but may, in the exercise of his own discretion, sign or reject this AGREEMENT at any time before the expiration of the twenty-one (21) days;
(d) The waivers and releases set forth in this AGREEMENT shall not apply to any rights or claims that may arise under the ADEA and/or OWBPA after the EFFECTIVE DATE of this AGREEMENT;
(e) EMPLOYEE has been advised by this writing that he should consult with an attorney prior to executing this AGREEMENT;
(f) EMPLOYEE has discussed this waiver and release with, and been advised with respect thereto by, his counsel of choice, and that he does not need any additional time within which to review and consider this AGREEMENT;
(g) EMPLOYEE has seven (7) days following his execution of this AGREEMENT to revoke the AGREEMENT;
(h) Notice of revocation within the seven (7) day revocation period must be provided, in writing, to THE CITY pursuant to Paragraph 8.9 herein, and must state, “I hereby revoke my acceptance of our Agreement of Severance and General Release;” and (i) This AGREEMENT shall not be effective until all parties have signed the AGREEMENT and ten (10) days have passed since EMPLOYEE’s execution (“EFFECTIVE DATE”).
5. UNKNOWN CLAIMS
In relation to the release provisions of Paragraphs 3 and 4 above, EMPLOYEE understands that California Civil Code section 1542 reads as follows:
“General Release--Claims Extinguished”
“A general release does not extend to claims that 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.”
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EMPLOYEE hereby waives the protection of California Civil Code section 1542.
6. WAIVER OF ADDITIONAL CLAIMS
EMPLOYEE hereby waives any provisions of state or federal law that might require a more detailed specification of the claims being released pursuant to the provisions of Paragraphs 3, 4, and 5 above to the extend allowed under applicable law.
7. REPRESENTATIONS AND WARRANTIES
Each of the parties to this AGREEMENT represents and warrants to, and agrees with, each other party as follows:
7.1. Advice of Counsel: The parties hereto have received independent legal advice from their respective attorneys concerning the advisability of entering into and executing this AGREEMENT or have been given the opportunity to obtain such advice. The parties acknowledge that they have been represented by counsel of their own choice in the negotiation of this AGREEMENT, that they have read this AGREEMENT; that they have had this AGREEMENT fully explained to them by such counsel, or have had such opportunity to do so and that they are fully aware of the contents of this AGREEMENT and of its legal effect.
7.2. No Fraud in Inducement: No party (nor any officer, agent, employee, representative, or attorney of or for any party) has made any statement or representation or failed to make any statement or representation to any other party regarding any fact relied upon in entering into this AGREEMENT, and neither party relies upon any statement, representation, omission or promise of any other party in executing this AGREEMENT, or in making the settlement provided for herein, except as expressly stated in this AGREEMENT.
7.3. Independent Investigation: Each party to this AGREEMENT has made such
investigation of the facts pertaining to this settlement and this AGREEMENT and all the matters pertaining thereto, as it deems necessary.
7.4. Mistake Waived: In entering into this AGREEMENT, each party assumes the risk of any misrepresentation, concealment or mistake. If any party should subsequently discover that any fact relied upon by it in entering into this AGREEMENT was untrue, or that any fact was concealed from it, or that its understanding of the facts or of the law was incorrect, such party shall not be entitled to any relief in connection therewith, including without limitation on the generality of the foregoing any alleged right or claim to set aside or rescind this AGREEMENT.
This AGREEMENT is intended to be, and is, final and binding between the parties, regardless of any claims of misrepresentation, promise made without the intent to perform, concealment of fact, mistake of fact or law, or any other circumstance whatsoever.
7.5. Later Discovery: The parties are aware that they may hereafter discover claims or facts in addition to or different from those they now know or believe to be true with respect to the matters related herein. Nevertheless, it is the intention of the parties that
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EMPLOYEE fully, finally and forever settle and release all such matters, and all claims relative thereto, which do now exist, may exist or have previously existed against THE CITY or THE CITY PARTIES. In furtherance of such intention, the releases given here shall be, and remain, in effect as full and complete releases of all such matters, notwithstanding the discovery or existence of any additional or different claims or facts relative thereto.
7.6. Indemnification: EMPLOYEE agrees to indemnify and hold harmless THE CITY or THE CITY PARTIES from, and against, any and all claims, damages, or liabilities sustained by them as a direct result of the violation or breach of the covenants, warranties, and representations undertaken pursuant to the provisions of this AGREEMENT. EMPLOYEE understands and agrees that he shall be exclusively liable for the payment of all taxes for which he is responsible, if any, as a result of her/his receipt of the consideration referred to in Paragraph 3 of this AGREEMENT. In addition, EMPLOYEE agrees fully to indemnify and hold the CITY PARTIES harmless for payment of tax obligations as may be required by any federal, state or local taxing authority, at any time, as a result of the payment of the consideration set forth in Paragraph 3 of this AGREEMENT.
7.7. Future Cooperation & Consultation fees: EMPLOYEE shall execute all such further and additional documents as shall be reasonable, convenient, necessary or desirable to carry out the provisions of this AGREEMENT. EMPLOYEE shall provide THE CITY with consultation services (including deposition or trial testimony) in any litigation involving THE CITY which is reasonably related to acts or occurrences transpiring during her/his employment.
Said services shall be provided as needed by THE CITY at a rate of $100.00 per hour.
7.8. Return of Confidential Information and Property: Prior to the separation date, EMPLOYEE shall submit a written inventory of, and return to the Human Resources Division, all City keys, equipment, computer identification cards or codes, and other equipment or materials or confidential documents provided to or obtained by EMPLOYEE during the course of her/his employment with THE CITY.
7.9 No Pending Claims and/or Actions: EMPLOYEE represents that he has not filed any complaints or charges against THE CITY or THE CITY PARTIES with any local, state or federal agency or court; that he will not do so at any time hereafter for any claim arising up to and including the EFFECTIVE DATE of this AGREEMENT; and that if any such agency or court assumes jurisdiction of any such complaint or charge against THE CITY or THE CITY PARTIES on behalf of EMPLOYEE, whenever or where ever filed, he will request such agency or court to withdraw from the matter forthwith.
7.10. Ownership of Claims: EMPLOYEE represents and warrants as a material term of this AGREEMENT that EMPLOYEE has not heretofore assigned, transferred, released or granted, or purported to assign, transfer, release or grant, any of the CLAIMS disposed of by this AGREEMENT. In executing this AGREEMENT, EMPLOYEE further warrants and represents that none of the CLAIMS released by EMPLOYEE thereunder will in the future be assigned, conveyed, or transferred in any fashion to any other person and/or entity.
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7.11 Enforcement Fees and Costs: Should any legal action be required to enforce the terms of this AGREEMENT, the prevailing party shall be entitled to reasonable attorneys’ fees and costs in addition to any other relief to which that party may be entitled.
7.12 Authority: Each party represents to the other that it has the right to enter into this AGREEMENT, and that it is not violating the terms or conditions of any other AGREEMENT to which they are a party or by which they are bound by entering into this AGREEMENT. The parties represent that they will obtain all necessary approvals to execute this AGREEMENT. It is further represented and agreed that the individuals signing this AGREEMENT on behalf of the respective parties have actual authority to execute this AGREEMENT and, by doing so, bind the party on whose behalf this AGREEMENT has been signed.
8. MISCELLANEOUS
8.1. No Admission: Nothing contained herein shall be construed as an admission by THE CITY of any liability of any kind. THE CITY denies any liability in connection with any claim and intends hereby solely to avoid potential claims and/or litigation and buy its peace.
8.2. Governing Law: This AGREEMENT has been executed and delivered within the State of California, and the rights and obligations of the parties shall be construed and enforced in accordance with, and governed by, the laws of the State of California.
8.3. Full Integration: This AGREEMENT is the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous oral and written agreements and discussions. This AGREEMENT may be amended only by a further agreement in writing, signed by the parties hereto.
8.4. Continuing Benefit: This AGREEMENT is binding upon and shall inure to the benefit of the parties hereto, their respective agents, spouses, employees, representatives, officials, attorneys, assigns, heirs, and successors in interest.
8.5. Joint Drafting: Each party agrees that it has cooperated in the drafting and preparation of this AGREEMENT. Hence, in any construction to be made of this AGREEMENT, the parties agree that same shall not be construed against any party.
8.6. Severability: In the event that any term, covenant, condition, provision or agreement contained in this AGREEMENT is held to be invalid or void by any court of competent jurisdiction, the invalidity of any such term, covenant, condition, provision or agreement shall in no way affect any other term, covenant, condition, provision or agreement and the remainder of this AGREEMENT shall still be in full force and effect.
8.7. Titles: The titles included in this AGREEMENT are for reference only and are not part of its terms, nor do they in any way modify the terms of this AGREEMENT.
8.8. Counterparts: This AGREEMENT may be executed in counterparts, and
1 Director of Community Development and Public Works
when each party has signed and delivered at least one such counterpart, each counterpart shall be deemed an original, and, when taken together with other signed counterparts, shall constitute one AGREEMENT, which shall be binding upon and effective as to all parties.
8.9. Notice: Any and all notices given to any party under this AGREEMENT shall be given as provided in this paragraph. All notices given to either party shall be made by certified or registered United States mail, or personal delivery, at the noticing party’s discretion, and addressed to the parties as set forth below. Notices shall be deemed, for all purposes, to have been given on the date of personal service or three (3) consecutive calendar days following deposit of the same in the United States mail.
As to EMPLOYEE:
At EMPLOYEE’s home address on file with THE CITY.
As to THE CITY:
City Manager
City of South El Monte
1415 Santa Anita Ave.
South El Monte, California 91733
1 Director of Community Development and Public Works
IN WITNESS WHEREOF, THE CITY has caused this AGREEMENT to be signed and executed on its behalf by its Mayor and duly attested by its City Clerk, EMPLOYEE has signed and executed this Agreement, and the attorneys for THE CITY and EMPLOYEE, if any, have approved as to form as of the dates written below.
DATED: EMPLOYEE
By:
Gerardo Marquez
THE CITY
DATED: By:
City Manager
ATTEST:
Adrian Garcia, MMC, City Clerk
APPROVED AS TO FORM:
Susie Altamirano, City Attorney
1 Director of Community Development and Public Works
EXHIBIT “C”
GOVERNMENT CODE SECTION 53243-53243.4
53243. On or after January 1, 2012, any contract executed or renewed between a local agency and an officer or employee of a local agency that provides paid leave salary offered by the local agency to the officer or employee pending an investigation shall require that any salary provided for that purpose be fully reimbursed if the officer or employee is convicted of a crime involving an abuse of his or her office or position.
53243.1. On or after January 1, 2012, any contract executed or renewed between a local agency and an officer or employee of a local agency that provides funds for the legal criminal defense of an officer or employee shall require that any funds provided for that purpose be fully reimbursed to the local agency if the officer or employee is convicted of a crime involving an abuse of his or her office or position.
53243.2. On or after January 1, 2012, any contract of employment between an employee and a local agency employer shall include a provision which provides that, regardless of the term of the contract, if the contract is terminated, any cash settlement related to the termination that an employee may receive from the local agency shall be fully reimbursed to the local agency if the employee is convicted of a crime involving an abuse of his or her office or position. 53243.3. On or after January 1, 2012, if a local agency provides, in the absence of a contractual obligation, for any of the payments described in this article, then the employee or officer receiving any payments provided for those purposes shall fully reimburse the local agency that provided those payments in the event that the employee or officer is convicted of a crime involving the abuse of his or her office or position.
53243.4. For purposes of this article, "abuse of office or position" means either of the following:
(a) An abuse of public authority, including, but not limited to, waste, fraud, and violation of the law under color of authority.
(b) A crime against public justice, including, but not limited to, a crime described in Title 5 (commencing with Section 67) or Title 7 (commencing with Section 92) of Part 1 of the Penal Code.
City Council Agenda Report
Agenda Item No. 12.a.
DATE: September 2, 2025
TO: Honorable Mayor and Members of the City Council
APPROVED BY: Rene Salas, City Manager
SUBMITTED BY:
SUBJECT: COUNCILMEMBER MANUEL ACOSTA
1. Installation of Surveillance Camera and Listening Device in the Councilmembers’ Office
2. Update on the New Public Safety Officer Contract
SUMMARY: 1) Installation of Surveillance Camera and Listening Device in the Councilmembers’ Office
Discussion/Action: On August 7, 2025, the City Manager installed a surveillance camera with a listening device in the councilmembers’ office without consulting with the mayor or the councilmembers. The reasons are suspect, and raises several questions about the motive. What is the need to record the movements of the councilmembers and their conversations? What is the city manager intending to do with that information? Is there a security threat that the city manager has not divulged? 2) Update on the New Public Safety Officer Contract
Discussion/Action: On July 1, 2025, the city council on a 3-2 vote approved the removal of the city’s long-standing and well-respected Public Safety Officers. And on the same motion, approved their replacement with a new Contract Public Safety Officer team. It was cited that this was necessary in order to save money and reduce the city’s long-term budget deficit. The intent was to replace the seven (7) membered South El Monte Cityemployed PSO team, with a four (4) membered Contract-PSO group.
During the budget review discussion, the following costs were disclosed:
- Two (2) Full-time and two (2) Part-time Contract Public Safety Officers will cost $258,773.
- Two (2) Full-time and two (2) Part-time South El Monte-employed Public Safety Officers will cost $234,237 (figure includes benefits).
The difference between the two costs is $24,536, making South El Monte Public Safety
Officers less expensive than contract Public Safety Officers.
The last day of service for the city PSO team was August 14th. Why hasn’t the new Contract-PSO group been hired? Is the plan still to have two full-time and two part-time PSOs? What is the actual cost of the new Contract-PSO group? What will the new schedule look like?
RECOMMENDED ACTION:
FISCAL/FINANCIAL IMPACT:
DISCUSSION:
ATTACHMENT(S):
None
City Council Agenda Report
Agenda Item No. 12.b.
DATE: September 2, 2025
TO: Honorable Mayor and Members of the City Council
APPROVED BY: Rene Salas, City Manager
SUBMITTED BY:
SUBJECT: MAYOR GLORIA OLMOS
1. Consideration of conducting a town hall meeting to bring awareness and fight drug abuse for the use of Fentanyl, Nitazene, and NAS in collaboration with the Wellness Center, LAC+USC Medical Center Foundation
SUMMARY:
RECOMMENDED ACTION:
FISCAL/FINANCIAL IMPACT:
DISCUSSION:
ATTACHMENT(S):
None