Agenda packet, regular meeting — City Council and Concurrent Authorities, September 12, 2023 (part 1 of 3)

City Council/Successor Agency to the
Redevelopment Agency/Public
Financing Authority/Parking Authority
Concurrent
City of Stockton
Meeting Agenda - - Revised
City Council/Successor
Agency of the
Redevelopment
Agency/Public Financing
Authority/Parking Authority
Concurrent Agenda
Council Chamber, City Hall, 425 N. El Dorado
Street, Stockton CA
4:00 PMTuesday, September 12, 2023
Closed Session 4:00 PM :: Regular Session 5:30 PM
Note: Councilmember Dan Wright will participate in the meeting via teleconference from the following location: Hyatt Regency Washington on Capitol Hill 400 New Jersey Ave NW, Washington, DC 20001 Business Center

1. CLOSED SESSION CALL TO ORDER/ROLL CALL

2. ADDITIONS TO CLOSED SESSION AGENDA

3. ANNOUNCEMENT OF CLOSED SESSION

3.1 23-0750 CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION Number of Cases: One
Name of Case: Kurt Wilson v. City Council of Stockton, et al. (San Joaquin County Superior Court Case No.

STK-CV-UVM-2019-12404)
This Closed Session is authorized pursuant to section 54956.9(d) (1) of the Government Code.

Department: City Attorney

3.2 23-0743 CONFERENCE WITH LABOR NEGOTIATOR
Recommended Action: Agency Designated Representative: City Manager Harry Black Employee Organizations: Unrepresented Units, Stockton City Employees' Association, Operating Engineer's Local 3, Mid-Management/Supervisory Level Unit, Unrepresented Management/Confidential, Law Department, Stockton Police Management Association, Stockton Firefighters Local 456 International Association of Firefighters, Stockton Fire Management, Stockton Police Officers' Association (SPOA)
This Closed Session is authorized pursuant to section 54957.6(a) of the Government Code.

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September 12, 2023City Council/Successor Agency to
the Redevelopment Agency/Public
Financing Authority/Parking
Authority Concurrent
Meeting Agenda - - Revised
Department: City Attorney

3.3 23-0753 PUBLIC EMPLOYEE PERFORMANCE EVALUATION:

Recommended Action: City Manager

This Closed Session is authorized pursuant to Government Code section 54957.

Department: City Attorney

3.4 23-0755 PUBLIC EMPLOYEE PERFORMANCE EVALUATION:

Recommended Action: City Attorney

This Closed Session is authorized pursuant to Government Code section 54957.

Department: City Attorney

3.5 23-0757 PUBLIC EMPLOYEE PERFORMANCE EVALUATION:

Recommended Action: City Clerk

This Closed Session is authorized pursuant to Government Code section 54957.

Department: City Attorney

3.6 23-0759 CONFERENCE WITH LEGAL COUNSEL - POTENTIAL LITIGATION Number of Cases: One
Based on existing facts and circumstances, there is significant exposure to litigation pursuant to Government Code section 54956.9(d)(2).

Department: City Attorney

4. CLOSED SESSION PUBLIC COMMENT*

5. RECESS TO CLOSED SESSION

6. REGULAR SESSION CALL TO ORDER/ROLL CALL

7. INVOCATION/PLEDGE TO FLAG

8. REPORT OF ACTION TAKEN IN CLOSED SESSION

9. ADDITIONS TO REGULAR SESSION AGENDA***

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September 12, 2023City Council/Successor Agency to
the Redevelopment Agency/Public
Financing Authority/Parking
Authority Concurrent
Meeting Agenda - - Revised

10. RECOGNITIONS, ANNOUNCEMENTS, OR REPORTS

11. PUBLIC COMMENTS* – MATTERS NOT ON THE AGENDA

12. CONSENT AGENDA

12.1 23-0781 ADOPT A MOTION APPROVING THE STOCKTON ARTS

COMMISSION RECOMMENDATION TO APPOINT JAZMARIE

LATOUR AS POET LAUREATE AND TAMA BRISBANE AS POET

LAUREATE EMERITUS
Recommended Action: RECOMMENDATION
It is recommended that the City Council adopt a motion to:

1. Approve the recommendation by the Stockton Arts Commission and appoint Jazmarie LaTour as the City of Stockton Poet Laureate for one two-year term effective October 1, 2023, through September 30, 2025, with an additional two-year mutual renewal option.

2. Approve the recommendation by the Stockton Arts Commission and appoint Tama Brisbane as City of Stockton Poet Laureate Emeritus.

It is further recommended that the motion authorize the City Manager to take necessary action to complete the intent of this motion including the execution of all necessary documents and agreements.

Department: Community Services
Attachment A - Poet Laureate Scope of ServicesAttachments:

12.2 23-0790 AUTHORIZE THE CITY MANAGER TO APPROVE A CONTRACT

RENEWAL WITH ATHENS ADMINISTRATORS TO PROVIDE

SERVICES AS THE THIRD-PARTY ADMINISTRATOR (TPA) FOR THE CITY’S SELF-INSURED WORKERS’ COMPENSATION PROGRAM
Recommended Action: RECOMMENDATION
It is recommended that the City Council adopt and authorize a motion to:

1. Approve entering into the service agreement with Athens Insurance Services, Inc for provide services as the Third-Party Administrator (TPA) for the City's Self-funded Workers' Compensation Program:

2. Authorize the City manager to execute a three-year service agreement with the option of two (2), one (1) year extensions, for TPA services.

3. Approve findings for an exception to the competitive bidding process; and

4. Authorize the City Manager to take all necessary and appropriate action to carry out the purpose and intent of this motion.

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September 12, 2023City Council/Successor Agency to
the Redevelopment Agency/Public
Financing Authority/Parking
Authority Concurrent
Meeting Agenda - - Revised
Department: Human Resources
Attachment A - Athens Contract 2023Attachments:

12.3 23-0776 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF

STOCKTON AND THE WATER SUPERVISORY UNIT
Recommended Action: RECOMMENDATION
It is recommended that the City Council adopt by resolution the attached successor Memorandum of Understanding (MOU) effective July 1, 2023 through June 30, 2026, with the following bargaining unit: Water Supervisory.

It is further recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of the resolution, including implementation and funding of this successor MOU.

Department: Human Resources
Attachment A - Water Supervisory Unit MOU - Redline
Proposed Resolution
Exhibit 1 - Water Supervisory MOU
Exhibit 2 - Budget Amendment
Attachments:

12.4 23-0713 ADOPT A RESOLUTION AUTHORIZING THE PURCHASE OF

MEMBRANE FILTERS FROM FILMTEC CORPORATION FOR THE

DELTA WATER TREATMENT PLANT
Recommended Action: RECOMMENDATION
It is recommended that the City Council adopt a resolution to:

1. Approve findings pursuant to Stockton Municipal Code Section

3.68.070 for an exception to the competitive bidding process.

2. Authorize a purchase agreement with FilmTec Corporation for membrane filters in the amount of $261,772.50.

It is also recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of this resolution.

Department: Municipal Utilities
Proposed Resolution
Exhibit 1 - Quote
Attachments:

12.5 23-0746 ADOPT A RESOLUTION AUTHORIZING A CONTRACT EXTENSION

FOR PROFESSIONAL STAFFING SERVICES FROM WATERTALENT,
LLC. AND AMEND THE FISCAL YEAR 2023-24 ANNUAL BUDGET

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September 12, 2023City Council/Successor Agency to
the Redevelopment Agency/Public
Financing Authority/Parking
Authority Concurrent
Meeting Agenda - - Revised
Recommended Action: RECOMMENDATION
It is recommended that the City Council adopt a resolution to:

1. Approve findings pursuant to Stockton Municipal Code Section

3.68.070 in support of an exception to the competitive bidding process.

2. Authorize the City Manager to execute a five (5) year contract extension with waterTALENT, LLC. for a not-to-exceed amount of $1,599,500.

3. Appropriate funds of $200,000 from the Wastewater Utility Fund Balance and $50,000 from the Water Utility Fund Balance to the respective Wastewater and Water Treatment Plant Operations, Special Services account for these services for the 2023-24 fiscal year.

It is also recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of the resolution.

Department: Municipal Utilities
Proposed Resolution
Exhibit 1 - waterTALENT
Attachments:

12.6 23-0749 AUTHORIZE A COOPERATIVE PURCHASE AGREEMENT WITH

CINTAS CORPORATION THROUGH OMNIA PARTNERS TO OBTAIN

CITYWIDE UNIFORM RENTAL AND LAUNDRY SERVICES
Recommended Action: RECOMMENDATION
It is recommended that the City Council adopt a resolution to:

1. Approve findings pursuant to Stockton Municipal Code Section

3.68.070 in support of an exception to the competitive bidding process.

2. Authorize a four-year cooperative purchase agreement with Cintas Corporation to provide uniform rental and laundry services through a cooperative contract awarded by OMNIA partners, for a total not to exceed amount of $1,354,200.

It is also recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of the resolution.

Department: Municipal Utilities
Proposed Resolution
Exhibit 1- Cooperative Agreement
Attachments:

12.7 23-0678 ADOPT RESOLUTION FOR THE SINGLE AVAILABLE SOURCE

PURCHASE OF BRUSH RIGS

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1. Approve findings pursuant to Stockton Municipal Code section

3.68.070 in support of an exception to the competitive bidding process.

2. Authorize the purchase of four brush rigs plus upfitting of an existing brush rig for the Fire Department in the amount of $1,478,198 with DEROTIC Emergency Equipment of Rancho Cordova, CA.

It is also recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of this resolution.

Department: Public Works
Attachment A - Derotic Quotes for Brush Rigs
Attachment B - Equipment Replacement List
Proposed Resolution
Attachments:

12.8 23-0839 ADOPT A RESOLUTION APPOINTING A MEMBER TO THE

MEASURE W OVERSIGHT COMMITTEE
Recommended Action: RECOMMENDATION
It is recommended that the City Council adopt a resolution ratifying the appointment of Mario Enriquez to the Measure W Oversight Committee for a term beginning immediately and ending on January 31, 2025.

Department: City Clerk
Attachment A - Redacted Application.pdf
Proposed Resolution.docx
Attachments:

13. ADMINISTRATIVE MATTERS

14. UNFINISHED BUSINESS

15. NEW BUSINESS

15.1 23-0825 ADOPT A MOTION TO ALLOCATE AND APPROPRIATE GRANT AND

GENERAL FUND CONTINGENCY FUNDING FOR A THREE-YEAR
OPERATIONS SUBSIDY FOR ST. MARY’S DINING ROOM

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1. Allocate and appropriate $5,380,000 of General Fund Contingency, Homeless Housing Assistance and Prevention (HHAP) and American Rescue Plan Act (ARPA) funds for a three-year, campus-wide shelter operations subsidy to St. Mary's Dining Room.

2. Authorize the City Manager, or designee, to enter into a contract with St. Mary's Dining Room for the operations of the shelter campus for a period of three years, with option to renew.

3. Approve findings pursuant to Stockton Municipal Code section

3.68.070 in support of an exception to the competitive bidding process.

4. Authorize the City Manager, or designee, to enter into and execute any associated documents and take appropriate and necessary actions to carry out the purpose and intent of this motion.

Department: Economic Development
Attachment A - Stockton Shelter Assignment and Assumption Attachment B - Sublease Amendment
Attachment C - Agreement for Shelter Operation Services PPT - 15.1 - St Marys Dining Room Update
Attachments:

15.2 23-0836 ADOPT A RESOLUTION TO ACCEPT AND APPROPRIATE A ROUND 4 TRANSFORMATIVE CLIMATE COMMUNITIES IMPLEMENTATION
GRANT AWARD IN THE AMOUNT OF $24,165,510
Recommended Action: RECOMMENDATION
It is recommended that the City Council adopt a resolution to:

1. Authorize the City Manager to execute a grant agreement in the amount of $24,165,510 with the California Strategic Growth Council, and;

2. Authorize the City Manager to appropriate grant revenues and expenditures in the amount of $24,165,510, and;

3. Authorize the City Manager to execute and manage sub-agreements with co-applicants in amounts consistent with the Grant Agreement, and;

4. Authorize the allocation of four (4) grant-funded limited term positions within the City Manager's Office to oversee the administration of the grant.

It is also recommended that the City Council authorize the City Manager to take appropriate and necessary actions to carry out the purpose and intent of the resolution.

Department: City Manager

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September 12, 2023City Council/Successor Agency to
the Redevelopment Agency/Public
Financing Authority/Parking
Authority Concurrent
Meeting Agenda - - Revised
Attachment A - TCC Round 4 Implementation Grant Agreement Attachment B - Stockton Rising Summary Budget Overview
Attachment C - TCC Project Area Map
Proposed Resolution
PPT - 15.2 - TCC Round 4
Attachments:

16. HEARINGS**

16.1 23-0719 PUBLIC HEARING AUTHORIZING THE CONTINUED USE, FUNDING,

AND ACQUISITION, FOR MILITARY EQUIPMENT ESTABLISHED IN

THE MILITARY EQUIPMENT USE POLICY AS MANDATED BY
CHAPTER 12.8 (COMMENCING WITH SECTION 7070) TO DIVISION 7 OF TITLE 1 OF THE GOVERNMENT CODE, RELATING TO

MILITARY EQUIPMENT
Recommended Action: RECOMMENDATION
It is recommended, at the conclusion of the public hearing, that the City Council, as governing body of the City of Stockton, by motion:

1. Authorize Stockton Police Department (SPD) to continue the use of military equipment as defined by Assembly Bill 481 (AB 481) and approved via City Ordinance 2022-04-05-1601.

2. Approve 2023 Intended Acquisitions, as outlined in the 2023 AB 481 Annual Report, published July 31, 2023.

It is further recommended that the Council authorize the City Manager to take all necessary and appropriate actions to carry out the purpose and intent of this motion.

Department: Police
Attachment A - Ordinance No. 2022-04-05-1601
Attachment B - Stockton PD Annual Report AB 481
PPT - 16.1 - Assembly Bill 481
Attachments:

17. CITY MANAGER'S UPDATE

18. COUNCIL COMMENTS

19. ADJOURNMENT

INFORMATIONAL ITEMS
1 23-0791 COUNCIL COMMITTEE/BOARD AND COMMISSION MINUTES

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September 12, 2023City Council/Successor Agency to
the Redevelopment Agency/Public
Financing Authority/Parking
Authority Concurrent
Meeting Agenda - - Revised
Recommended Action:

RECOMMENDATION
Information item only. No action required.

Department: City Clerk
CSC 2023-05-18.pdf
Legislation 2023-04-19.pdf
Legislation 2023-05-17.pdf
PC 2023-03-23.pdf
Attachments:

CERTIFICATE OF POSTING
I declare, under penalty of perjury, that I am employed by the City of Stockton and that I caused this agenda to be posted in the City Hall notice case on September 7,2023 in compliance with the Brown Act.

Eliza R. Garza, CMC
City Clerk
By: ________________________________
Deputy

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September 12, 2023City Council/Successor Agency to
the Redevelopment Agency/Public
Financing Authority/Parking
Authority Concurrent
Meeting Agenda - - Revised

PUBLIC COMMENTS
*Citizens may comment on any subject within the jurisdiction of the City Council/Successor Agency to the Redevelopment Agency/Public Finance Authority/Parking Authority, including items on the Agenda. Each speaker is limited to two minutes. Speakers must submit “Request to Speak” cards to the City Clerk, and be prepared to speak when called. No speaker cards will be received after the close of the Citizen’s Comments portion of the meeting.
**Speakers should hold comments on items listed as a Hearing until the Hearing is opened.

The City of Stockton invites public comments in multiple forms. You provide your comments by using one of these methods:

1. e-Comment - follow the e-comment link on the City's agenda page stockton.granicusideas.com/meetings

2. Email - you may email your comments to [email protected]

3. Voicemail - you can leave a voice message by dialing (209) 937-8459.

4. In-Person Comments - a) Speakers must submit "request to speak cards" to the Clerk prior to the Public Comment portion of the agenda. No speaker cards will be accepted after the close of Public Comment. Please redirect any inquiries to [email protected]. b) Address only issues over which the meeting body has jurisdiction. c) Each speaker will be limited to one 2-minute comment opportunity. Donating time is not authorized. d) Your time will be displayed on the speaker podium for convenience. *All written and voicemail public comments received by the Clerk's Office 90 minutes prior to the meeting start time will be forwarded to the meeting body members as correspondence and attached the minutes. All comments received after that time will be forwarded as correspondence the following business day. ***Additions to the Agenda - Government Code Section 54954.2(b)(2), allows members of the City Council present at the meeting to take immediate action, with either a two-thirds or unanimous vote, to place an item on the agenda that action must be taken and that the item came to the attention of the City subsequent to the agenda being posted.

All proceedings before this meeting body are conducted in English. The City of Stockton does not furnish language interpreters and, if one is needed, it shall be the responsibility of the person needing one.

In accordance with the Americans With Disabilities Act and California Law, it is the policy of the City of Stockton to offer its public programs, services and meetings in a manner that is readily accessible to everyone, including those with disabilities. If you are a person with a disability and require a copy of a public hearing notice, or an agenda and/or agenda packet in an appropriate alternative format; or if you require other accommodation, please contact the Office of the City Clerk located at 425 North El Dorado Street, Stockton, California 95202 during normal business hours or by calling (209) 937-8458, at least 5 days in advance of the hearing/meeting. Advance notification within this guideline will enable the City/Agency to make reasonable arrangements to ensure accessibility.

Materials related to an item on this agenda submitted to City Council after distribution of the agenda packet are available for public inspection in the City Clerk's Office at 425 North El Dorado Street, Stockton, California 95202, during normal business hours. Such documents are also available on the City's website at www.stocktongov.com subject to staff's ability to post the documents before the meeting.

CHALLENGING CITY DECISIONS: The time limit within which to commence any lawsuit or legal challenge to any quasi-adjudicative decision made by the City is governed by Section 1094.6 of the Code of Civil Procedure, unless a shorter limitation period is specified by any other provision. Under Section 1094.6, any lawsuit or legal challenge to any quasi-adjudicative decision made by the City must be filed no later than the 90th day following the date on which such decision becomes final. Any lawsuit or legal challenge, which is not filed within that 90-day period, will be barred. If a person wishes to challenge the nature of the above section in court, they may

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September 12, 2023City Council/Successor Agency to
the Redevelopment Agency/Public
Financing Authority/Parking
Authority Concurrent
Meeting Agenda - - Revised
be limited to raising only those issues they or someone else raised at the meeting described in this notice, or in written correspondence delivered to the City of Stockton, at or prior to the meeting. In addition, judicial challenge may be limited or barred where the interested party has not sought and exhausted all available administrative remedies.

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City of Stockton
Legislation Text
File #: 23-0781, Version: 1

ADOPT A MOTION APPROVING THE STOCKTON ARTS COMMISSION RECOMMENDATION TO

APPOINT JAZMARIE LATOUR AS POET LAUREATE AND TAMA BRISBANE AS POET

LAUREATE EMERITUS

RECOMMENDATION
It is recommended that the City Council adopt a motion to:

2. Approve the recommendation by the Stockton Arts Commission and appoint Tama Brisbane as City of Stockton Poet Laureate Emeritus.

It is further recommended that the motion authorize the City Manager to take necessary action to complete the intent of this motion including the execution of all necessary documents and agreements.

Summary
In 2014, the City Council approved a Poet Laureate program. Following approval, the Stockton Arts Commission (SAC) conducted an interview and evaluation process culminating in the recommendation of Tama Brisbane as the City’s first Poet Laureate, Ms. Brisbane has served as the City’s Poet Laureate since its inception in July 2015 through June 30, 2023.

On March 6, 2023, SAC initiated the recruitment process for the next Poet Laureate. The recruitment closed on May 30, 2023. One application was received. On June 5, 2023, SAC extended the recruitment to June 30, 2023. Five applications were received and reviewed by a SAC ad hoc committee. Applications were evaluated based on several factors including: the poet’s body of work and publications, a strong connection to Stockton, ability to express an awareness of the past, present, and future of Stockton; and the ability to champion Stockton’s potential. Applicants were interviewed by a SAC ad hoc committee and the current Poet Laureate. Jazmarie LaTour was selected as the most qualified applicant.

At the August 7, 2023, meeting of the SAC, the Commission unanimously approved a recommendation to the City Council that Jazmarie LaTour be appointed to the Poet Laureate position, and Tama Brisbane be granted the title of Poet Laureate Emeritus. If approved, the appointment will be effective October 1, 2023, with a term of two years ending September 30, 2025, with an option, by mutual acceptance, to extend one additional two-year term.

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DISCUSSION
Background
In November 2014, the City Council approved funding for several projects consistent with its strategic priority areas of focus. Through the process, Council appropriated $2,000 for a Poet Laureate to promote awareness of poetry and the literary arts in Stockton with the selection process to be conducted by SAC and program supervision to be under the direction of the Community Services Department. Specific duties of the Poet Laureate include commemorating specific civic events through composing and reading poetry. The main responsibilities of the Poet Laureate are to provide a minimum of six readings per fiscal year as approved by the Director of Community Services and promote literary arts activities in Stockton. A scope of services which describes the Poet Laureate’s general duties is included as Attachment A.

Following Council approval, SAC conducted a process to select and recommend the first Poet Laureate. On July 21, 2015, the City Council approved the SAC recommendation to appoint Tama Brisbane as the inaugural Poet Laureate. The Poet Laureate’s term ended June 30, 2019.

On December 31, 2018, SAC initiated the recruitment process for the 2019-2021 Poet Laureate. The vacancy announcement was posted on the City’s Boards and Commissions web page. A request to publish a public service announcement was sent to the Stockton Record, City of Stockton affiliated agencies, and local organizations. The recruitment closed on January 31, 2019. Five applications were received. Two were deemed incomplete, and three were sent to SAC for evaluation and a recommendation.

A SAC ad hoc committee met on February 26, 2019, to evaluate the applications. Applications were evaluated for the poet’s body of work; publications; a strong connection to Stockton; ability to express an awareness of the past, present, and future of Stockton; and the ability to champion Stockton’s potential. Evaluations were followed by interviews and the performance of an original piece of poetry.

Tama Brisbane was selected as the most qualified applicant. At the March 4, 2019, meeting of the SAC, the ad hoc committee presented, and the Commission unanimously approved a recommendation to the Mayor and City Council that Tama Brisbane be appointed as the Poet Laureate. The appointment was effective July 1, 2019, with a term of two years, ending June 30, 2021, with an option, by mutual acceptance, to extend one additional two-year term. Ms. Brisbane and the City exercised that mutual option and Ms. Brisbane continued to serve as the City’s Poet Laureate until June 30, 2023.

On March 6, 2023, SAC initiated the recruitment process for the 2023 - 2025 Poet Laureate and recommended to increase the number of readings from the Poet Laureate from six to ten readings.

They also voted to increase stipend for the next Poet Laureate from $2,000 to $3,500.

Present Situation
The term of the City’s first Poet Laureate has ended. SAC has conducted an evaluation process and selected Jazmarie LaTour as the best candidate for Poet Laureate based on her published work, poetry, spoken word, and literary compositions.

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File #: 23-0781, Version: 1
The Stockton Arts Commission recommends the appointment of Jazmarie LaTour effective October 1, 2023, through September 30, 2025. Jazmarie LaTour will be paid an annual stipend of $3,500.

The position includes one additional mutual option to continue the program for an additional two-year term October 1, 2025, through September 30, 2027.

Poet Laureate, Tama Brisbane held the Poet Laureate role from July 21, 2015 through June 30, 2023. The position has been vacant since Ms. Brisbrane’s long and distinguished service to the City of Stockton, it is recommended that she be appointed Poet Laureate Emeritus.

FINANCIAL SUMMARY
Sufficient funds are available for the Poet Laureate program in the Community Services Recreation - Stockton Arts Commission account 5000-806-630019-100-125-50-50-000-000-.

Attachment A - Poet Laureate Scope of Services
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ATTACHMENT A

2023 Poet Laureate Scope of Services

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EXHIBIT 1

SCOPE OF SERVICES

PURPOSE
Under the guidance and direction of the Director of Community Services or his designee, the Poet Laureate is responsible for commemorating specific civic events through composing and reading poetry and increasing the public’s awareness of the benefits and importance of poetry and the literary arts. The Poet Laureate will work with Community Services staff to provide planning , program development, and subject matter ex pertise to formalize and document the Poet Laureate Program based on personal and professional experience from October 1, 2023 through September 30, 2025.

TERM
Poet Laureate will serve a term from October 1, 2023, through September 30, 2025.

STIPEND
The Poet Laureate will receive an annual stipend of $3,500. Poet Laureate will be paid quarterly:

Q-2 (October 2023-December 2023) $875 invoice due December 1, 2023 Q-3 (January 2024- March 2024) $875 invoice due March 1, 2024 Q-4 (April 2024- June 2024) $875 invoice due June 1, 2024 Q-1 (July 2024-September 2024) $875 invoice due September 1, 2024 Q-2 (October 2024-December 2024) $875 invoice due December 1, 2024 Q-3 (January 2025- March 2025) $875 invoice due March 1, 2025 Q-4 (April 2025-June 2025) $875 invoice due June 1, 2025 Q-1 (July 2025-September 2025) $875 invoice due September 1, 2025

Quarterly payments made upon on receipt of invoice via a City purchase order .

Stipend is inclusive of all costs associat ed with the work of the Poet Laureate (advertising, supplies, materials, travel, per diem, meals, insurance, and travel expenses)

RESPONSIBILITIES
 Serve as a public advocate for the appreciation and advancement of poetry and the literary arts with the understanding that a Poet Laureate speaks as a representative of the City when the message is approved in advance by the Director of Community Services ; and will clearly differentiate professional role from personal opinions when speaking from a personal perspective.

 Represent the City at a minimum of six events as assigned by the Director of Community Services or his designee . Special consideration of large culturally relevant opportunities or other occasions where the community

ATTACHMENT A

2023 Poet Laureate Scope of Services

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comes together to commemorate significant milestones may be substituted as mutually agreed upon.

o Potential Targeted Public Events:
 Literacy events
 Celebration of Life of MLK
 Grand Openings of Community Services Facilities
 Black History Month
 Pride Parade/Celebration
 Mexican Heritage Center Special Event
 Stockton Arts Week
 Family Day in the Park
 Earth Day
 Music in the Park

 Place an emphasis in bringing poetry and the literary arts to the youth of the community by working with the Director of Community Services and Arts Commission to identify specific collaborative opportunities with local schools, libraries, and literary organizations.

 At the Direction of the Director of Community Services, identify potential poets who could be invited by the Community Services Department to perform at cultural performances sponsored by the Arts Commission.

 The Poet Laureate will assist Community Services s taff to establish a written program for the Poet Laureate position, a historical summary, and prepare a planning process for the establishment of a succession plan for the future of the Poet Laureate position. The Poet Laureate will assist Community Services staff with revising specifications, and public outreach for the Poet Laureate program. Poet Laureate will also assist Community Services staff to establish a social media policy, approved Poet Laureate performance schedule, and quarterly report.

 The Poet Laureate will report a quarterly activities summary, annual schedule and meet on a monthly basis with Community Services to enhance communication with special event and staff.

City of Stockton
Legislation Text
File #: 23-0790, Version: 1

AUTHORIZE THE CITY MANAGER TO APPROVE A CONTRACT RENEWAL WITH ATHENS

ADMINISTRATORS TO PROVIDE SERVICES AS THE THIRD-PARTY ADMINISTRATOR (TPA) FOR THE CITY’S SELF-INSURED WORKERS’ COMPENSATION PROGRAM

RECOMMENDATION
It is recommended that the City Council adopt and authorize a motion to:

1. Approve entering into the service agreement with Athens Insurance Services, Inc for provide services as the Third-Party Administrator (TPA) for the City’s Self-funded Workers’ Compensation Program:

2. Authorize the City manager to execute a three-year service agreement with the option of two (2), one (1) year extensions, for TPA services.

3. Approve findings for an exception to the competitive bidding process; and

4. Authorize the City Manager to take all necessary and appropriate action to carry out the purpose and intent of this motion.

Summary
The City currently contracts with Athens to provide TPA services for the City’s self-funded workers’ compensation program. Services include administration of workers’ compensation claims in accordance with State law and regulations, City policies and procedures, and provision of workers’ compensation benefits such as medical treatment and indemnity payments to injured workers. The TPA also administers cost containment programs such as utilization review, bill review, and nurse case management.

The current agreement for TPA Services expires on September 30, 2023. On March 9, 2023, the City Manager approved the use of a Request for Proposal (RFP) process to solicit proposals for services for the City’s self-insured Workers’ Compensation Program. On July 10, 2023, the RFP Evaluation Committee (Committee) interviewed the four responding proponents. After calculating the Committee’s scoring of the proponents, Athens achieved the highest ranking. If approved, the agreement will commence on October 1, 2023, and continue for five (5) years through September 30, 2028 (Attachment A).

Athens will bill the City for services rendered based on the fee schedule noted in the contract and as set forth below, with an additional annual administration fee of $7,500:

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File #: 23-0790, Version: 1
Renewal Pricing Flat Annual Fee
Program Year 1 10/1/23-9/30/24 $825,445
Program Year 2 10/1/24-9/30/25 $858,875
Program Year 3 10/1/25-9/30/26 $893,660
Program Year 4 10/1/26-9/30/27 $929,853
Program Year 5 10/1/27-9/30/28 $967,512

DISCUSSION
Background
The City of Stockton has been self-insured for workers’ compensation since January 1, 1979. The City’s claims experience is approximately $1.84 million per year. This includes 561 existing claims with an average increase of 450 new claims per year. The City’s current claim reserves are set at $38.6 million.

The City has historically contracted with a Third-Party Claims Administrator for claims management due to the amount of activity, expertise, and available resources to handle the daily requirements of claims administration.

Present Situation
An RFP for Workers’ Compensation TPA services was issued on April 6, 2023. The RFP outlined the scope of work and requested proposals addressing vendor’s experience, organizational structure, commitment to quality-of-service delivery and pricing. The TPA will be required to administer open and closed claims in accordance with State law and regulations, City policies and procedures. The TPA will oversee stop loss reporting, subrogation recovery, utilization review and medical billing.

The City received a total of four (4) proposals from the following proponents:
· Pegasus Risk Management
· Sedgwick Claims Management
· Athens Insurance Services
· Innovative Claim Strategies
A committee was established to evaluate the proposals submitted and select the best qualified TPA.

The Committee was comprised of staff from Human Resources/Risk Services, Fire, Police, and Public Works. Based upon the Committee’s evaluation, Athens was selected.

Findings
SMC section 3.68.070 provides an exception to the competitive bidding process in cases where the City Council has approved findings which support and justify this action.

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Findings to justify an exception to the competitive bidding process are as follows:

1. The RFP process was utilized as an exception to the competitive bidding process, as selection based on cost alone does not necessarily guarantee the most appropriate vendor choice for specialty services such as Third-Party Workers’ Compensation claim administration. A strict competitive basis for selection would likely lower the quality of the services provided.

2. Selection based on cost alone does not take into account public sector experience or the ability to provide consistent quality claims administration.

3. These types of services such as workers’ compensation claims administration, medical cost containment and return to work programs require experienced professionals who have handled such services for other public entities and can work closely with City staff, which is in the public interest.

4. The RFP process allows the vendors to specify what services they can provide to the City rather than the City bidding specific services.

It is necessary for the City to contract out to handle these services as City staff does not have the full expertise or capacity to perform such services.

FINANCIAL SUMMARY
The following costs are based on the specific needs of the City for TPA services, and the response received from Athens. The expected cost over the next five years equates to $4,512,845 consisting of annual flat fees totaling $4,475,345 and an annual administration fee of $7,500:

Renewal Pricing Flat Annual Fee
Program Year 1 10/1/23-9/30/24 $825,445
Program Year 2 10/1/24-9/30/25 $858,875
Program Year 3 10/1/25-9/30/26 $893,660
Optional Year 1 10/1/26-9/30/27 $929,853
Optional Year 2 10/1/27-9/30/28 $967,512
The FY 2023-24 Annual Budget includes sufficient appropriation in the Special Services account (2510-000-630006-530-000-00-25-000-000- ) within the Workers’ Compensation fund to cover the first year of the third-party administration service agreement. Costs based on the anticipated scope of work for the subsequent years will be budgeted in the same account and subject to Council approval during the annual budget development process.

Attachment A - Athens Contract 2023
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1 CITY OF STOCKTON

STANDARD AGREEMENT

1. This Agreement is entered into between the City of Stockton and Contractor to provide
as set forth in Exhibit A to this Agreement.
_____________________________________________________________________________

2. The term of this Agreement is as follows, unless amended as described in Exhibit A and Exhibit C section 8:

Commences on: Terminates on:
_____________________________________________________________________________

3. The maximum not to exceed amount to be paid to Contractor for the term of this Agreement, including if authorized, reimbursement of expenses, is: $

4. The complete Agreement consists of all the following Agreement documents which by reference are incorporated and made a part of this Agreement. The parties agree to comply with the terms and conditions of this Agreement.
____________________________________________________________________________ IN WITNESS WHEREOF, the authorized parties have executed this Agreement.

CONTRACTOR
______________________________________________________________________________________________ Name (if other than an individual, state whether a corporation, partnership, etc.):
______________________________________________________________________________________________ Authorized Signature Date
______________________________________________________________________________________________ Printed Name and Title of Person Signing
______________________________________________________________________________________________ Address

CITY OF STOCKTON
_________________________________________________________ ________________ City Manager Date
ATTEST:
____________________________________________________________________________ , City Clerk
APPROVED AS TO FORM:
, City Attorney
BY:

Agreement Number:
(a) Exhibit A Statement of Work
(b) Exhibit B Insurance
(c) Exhibit C General Terms Conditions
(d) Exhibit D
Exhibit E Compensation Schedule
Athens Insurance Services Workers' Compensation Claims Administration October 1, 2023 September 30, 2026
2,600,480
Professional Services Special Terms & Conditions
Athens Insurance Services, Inc.

P.O. Box 696, Concord, CA, 94522
James Jenkins - President
DocuSign Envelope ID: 94DB0B1A-8720-4655-B086-3694612163F1 8/21/2023 | 8:19 AM PDT

ATTACHMENT A

ATTACHMENT A
City of Stockton
Legislation Text
File #: 23-0776, Version: 1

MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF STOCKTON AND THE WATER

SUPERVISORY UNIT

RECOMMENDATION
It is recommended that the City Council adopt by resolution the attached successor Memorandum of Understanding (MOU) effective July 1, 2023 through June 30, 2026, with the following bargaining unit: Water Supervisory.

Summary
In March 2023, representatives of the City began meeting with the labor representatives to discuss successor Memoranda of Understanding. The aforementioned MOU expired on June 30, 2023. On August 9, 2023, the City reached tentative agreement on a successor MOU with the Water Supervisory unit. The MOU contains compensation and benefit changes similar to the Stockton City Employees’ Association (SCEA) MOU, the Mid-Management/Supervisory Level (B&C) MOU, and the Unrepresented Employee Compensation Plan approved by City Council on August 22, 2023. The Water Supervisory unit MOU in redline format is attached.

DISCUSSION
Background
The City Council identified retention and recruitment of employees as a high priority and has taken numerous actions to set aside funds to address retention and market conditions through the General Fund Reserve policy.

In 2019, the City entered into a four (4) year contract term with the Water Supervisory unit wherein the bargaining unit members received a two percent (2%) Cost of Living Adjustment (COLA) to base pay effective January 1, 2020; a two percent (2%) COLA effective July 1, 2020; a two percent (2%) COLA effective July 1, 2021, and a two percent (2%) COLA effective July 1, 2022.

Present Situation
The City’s Long-Range Financial Plan (L-RFP) assumptions for employee compensation include two percent (2%) annual COLAs and two percent (2%) annual increases in the City’s health contributions.

Prior to the start of labor negotiations, the City contracted with a compensation consultant to perform City of Stockton Printed on 9/6/2023Page 1 of 5
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an updated market salary survey in 2022. Based on these findings, staff recommends market salary adjustments to certain classifications in these units. Market salary adjustments are salary increases above the planned COLAs that are necessary to maintain compensation at levels competitive with similarly situated agencies. Market adjustment costs are incorporated in the L-RFP.

The relevant amendments under the successor MOU for the Water Supervisory unit are summarized as follows:

1. Water Supervisory contract term for three (3) years effective July 1, 2023, through June 30, 2026.

2. Salary Adjustments. Effective the first full pay period following ratification of this MOU by the Water Supervisory unit and approved by the City Council, a four percent (4%) COLA increase; effective July 1, 2024, three percent (3%) COLA increase; and effective July 1, 2025, three percent (3%) COLA increase. (Section 15.1)

3. Market Adjustments. Market adjustments for classifications that are more than ten percent (10%) below median of market effective July 1, 2024, and July 1, 2025. The market adjustments are scheduled to bring all classifications to the median of the market by the end of the contract. No employees in this bargaining unit will receive market adjustments based on the compensation study. (Appendix A)

4. Lump Sum Payment. Employees in the bargaining unit as of July 1, 2024, will receive a two- thousand-dollar ($2,000.00) lump sum non-pensionable bonus to be paid in July 2024.

Employees in the bargaining unit as of July 1, 2025, will receive a two-thousand-dollar ($2,000.00) lump sum non-pensionable bonus to be paid in July 2025. (Section 15.1 (e))

5. One-Time Payment. A one-time payment in the amount of four hundred fifty dollars ($450.00) to all Water Supervisory unit members employed by the City upon adoption of the new MOU by the City Council. (Section 15.16)

6. City Health Contributions. Two percent (2%) increase to the City’s health insurance premium contribution effective upon approval of the City Council, and two percent (2%) each fiscal year thereafter, with the last increase effective July 1, 2025. (Section 14.2 (c))

7. Health and Welfare Benefits. Adding clarifying language that members are eligible for Anthem Plans A, B, C, and D and Kaiser Plans A, B, and A+. (Section 14.2 (a))

8. Vacation Cash Payment Option. Allow vacation cash payment option/sell-back of up to 40 hours during Fiscal Years 2023-2024 and 2024-2025 only. (Section 9.1 (e))

9. Safety Protective Footwear Reimbursement. Effective July 1, 2024, an increase to the footwear reimbursement from $200.00 to $250.00. (Section 13.4 (b))

10.Certification Training and Special Certifications. Increases to certifications for Water, Wastewater, Water Distribution, and/or California Water Environment Association (CWEA).

Employees assigned to the Water Treatment or Distribution function in the operator series who receives and maintains a level 4 or level 5 Water Operator Certification (T or D) will receive City of Stockton Printed on 9/6/2023Page 2 of 5
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quarterly amounts added to their paychecks. For one level above the minimum qualifications of the position, $1,000.00 and for two levels above the minimum qualifications of the position, $2,000.00. (Section 13.10)

11.Non-Discrimination. Updated language regarding the mutual non-discrimination commitment. (Section 3.1)

12.Retention/Rejection of Probationer. Clarify that the City will make a good faith effort to notify a probationary employee two (2) weeks before the end of the probationary period whether regular status is granted; however, a failure on the part of the appointing authority to file such a statement at the end of the probationary period shall not constitute a rejection of the probationer as defined in Civil Service Rules (Section 4.3)

13.Alcohol and Drug Testing. Clarifying language that all employees hired into safety-sensitive positions identified by the City must pass a drug and alcohol screening prior to being offered City employment due to positions requiring a commercial driver’s license or hazardous material endorsement. (Section 4.4)

14.Grievance Process. Update the grievance response deadlines. Update calendar days to working days for a Step 1 and Step 2 grievance response. (Section 8.3 (a) (b))

15.Protected Nature of Family Sick Leave. Updated definition to include “designated person” per the law update. (Section 9.2 (c))

16.Bereavement Leave. Update language regarding number of Bereavement leave days per the law update. (Section 9.3 (a))

17.Birthday Holiday. Clarifying that employees may take their Birthday Holiday off within sixty (60) calendar days beginning on their actual Birthday. (Section 12.2)

18.Compaction between classifications. Bryce Consulting provided a total compensation survey in 2022 and made recommendations for internal relationships between classifications in the units and employees in the same job family. In the event those internal relationships change, the parties will consider how to address potential compaction. (Section 15.1 (d))

19.Compensatory Time Payout. Clarify the definition of Compensatory Time. Any Compensatory Time balance in excess of 40 hours remaining at the end of the calendar year is automatically paid unless the employee submits a Compensatory Time deferral form to payroll by November 1st (Section 11.5).

20.Salary Step After Promotion or Demotion. Clarify that when an employee is promoted from a position in one class to a position in a higher class, the employee is entitled to the next step in the base salary of the higher class which is at least five percent above the employee’s current base salary. (Section 15.7 (a))

21.Exempt Status of Classifications. Remove provision outlining that specific classifications are exempt from overtime as provided by the Fair Labor Standards Act (FLSA). These classes remain exempt from FLSA, only removing language as clean up. (Section 11.2 (d)) City of Stockton Printed on 9/6/2023Page 3 of 5
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22. Special Certification Pay. Remove provision that is no longer applicable to the successor MOU. (Section 15.14)

23.Elimination of obsolete language, update to pronouns, and other language cleanup changes.

FINANCIAL SUMMARY
The Water Supervisors unit consists of 14 authorized positions in the Municipal Utilities Department.

These positions are fully funded by the Water, Wastewater, and Stormwater Utility Funds.

COLA and Market Adjustment
The three-year cost of the salary adjustments is $418,997. There are no market adjustments for this bargaining unit.

Lump Sum and One-Time Payments
Health Insurance
Based on an effective date of September 16, 2023, the cost to increase the City’s contribution to health insurance is $5,453 in FY 2023-24 and $25,649 for three years.

Vacation Cash Payment Option/Sell-back
The vacation cash out option in years one and two is estimated to cost $51,426.

Certification Pay and Safety Protective Footwear Reimbursement City of Stockton Printed on 9/6/2023Page 4 of 5
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Total Cost
The three-year cost of the successor MOU is $616,078 with $116,636 in FY 2023-24.

The FY 2023-24 cost is split as follows:

Water Utility Fund $36,937
Wastewater Utility Fund $66,258
Stormwater Utility Fund $13,441
The recommended budget amendment needed to implement this successor MOU is detailed in Exhibit 2 to the Resolution. Salary adjustments, health contributions and certification pays are ongoing costs to the City and should be sustainable long-term. Long-term projections show the Water and Wastewater utility funds can afford these cost increases. Rate studies will be prepared for each utility to determine if future rate increases are needed. Future year salary and benefit increases will be incorporated into the annual budget development process. There is no General Fund impact associated with this MOU.

Attachment A - Water Supervisory Unit MOU - Redline
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CITY OF STOCKTON

MEMORANDUM OF UNDERSTANDING

WATER SUPERVISORY UNIT

MUNICIPAL UTILITIES DEPARTMENT
Operating Engineers' Local 3, AFL-CIO and representatives of the City of Stockton have met and conferred in good faith regarding wages, hours and other terms and conditions of employment of employees in t he representation unit identified in sSection 1, have exchanged freely information, opinions and proposals, and have endeavored to reach agreement on all matters relating to the employment conditions and employer-employee relations of such employees.

This Memorandum of Understanding (MOU) is entered into pursuant to the Meyers- Milias-Brown Act (Government Code sections 3500-3510) and has been jointly prepared by the parties.

This Memorandum of UnderstandingMOU shall be presented to the Stockton City Council as the joint recommendations of the undersi gned for salary and benefit adjustments for the period commencing July 1, 20192023 and ending June 30, 20232026.

ATTACHMENT A

WATER SUPERVISORY UNIT SUCCESSOR MOU
Term: July 1, 20192023 – June 30, 20232026

CITY OF
STOCKTON 1

TABLE OF CONTENTS
Section 1. Recognition ................................................................................................... 2 Section 2. Union Rights .................................................................................................. 2 Section 3. Compliance with Federal Laws/Safety .......................................................... 5 Section 4. Probation ....................................................................................................... 6 Section 5. Layoff ............................................................................................................ 7 Section 6. Reemployment .............................................................................................. 9 Section 7. Discipline ..................................................................................................... 10 Section 8. Grievance Procedures ................................................................................. 11 Section 9. Leaves .............................................................................................. 1411544 Section 10. Days and Hours of Work ........................................................................... 23 Section 11. Overtime .................................................................................................... 24 Section 12. Holidays ......................................................................................... 28228277 Section 13. Compensation and Allowance Other Than Base Salary ........................ 3029 Section 14. Insurance Plans and Retirement Benefits ................................................. 34 Section 15. Salaries ................................................................................................. 3898 Section 16. Severability of Provisions ........................................................................ 434 Section 17. Past Practices and Existing Memoranda of Understanding ................... 4445 Section 18. Scope of Agreement .............................................................................. 4445 Section 19. Duration of Agreement .......................................................................... 4445 Section 20. Maintenance of Operations/City Rights ................................................. 4445 Section 21. GPS Devices in City Vehicles ................................................................ 4556 Appendix A. Market Adjustments ......................................................................... 474750 Appendix B. Side-Letter of Agreement Regarding Transfer of Services ............... 485251

ATTACHMENT A

WATER SUPERVISORY UNIT SUCCESSOR MOU
Term: July 1, 20192023 – June 30, 20232026

CITY OF STOCKTON 2

Section 1. Recognition
Operating Engineers' Local 3, AFL-CIO, hereinafter referred to as the "Union," is the recognized employee organization for the Water Supervisory Unit, certified pursuant to Resolution No. 08-0143, adopted by the City Council on April 15, 2008.

Section 2. Union Rights

2.1 Union Membership Dues and Payroll Deductions

(a) In accordance with the Senate B ill (SB) 866, the parties agree to the following process for making, cancelling, or changing payroll deductions for Union membership union dues deductions.

(b) As certified in writing by the Union to the City in a manner consistent with the requirement of (SB) 866 the City wi ll deduct the monthly Union membership dues, initiation fees, general assessments, and payments for membership benefits programs sponsored by the Un ion from the salary or wages of all bargaining unit employees who voluntarily authorize such deductions, as certified in writing by the Union to the City, and pay such amounts to the Union.

1. All employee requests to cancel or change membership dues deductions shall be directed to the Union.

2. The City shall rely up on written notification from the Union for any and all employee requests to cancel or change payroll deductions for membership dues.

3. The Union is responsible to obt ain and maintain voluntary written authorization for membership dues deductions.

4. Membership dues deductions shall automatically renew unless written notice is provided by the authorized representative of the Union certifying a change in membership dues.

5. The City shall honor any changes to membership dues deduction amounts provided by the Union.

6. The Union is not required to prov ide a copy of individual employee authorizations to the City unless a dispute arises about the existence or terms of the authorization.

ATTACHMENT A

WATER SUPERVISORY UNIT SUCCESSOR MOU
Term: July 1, 20192023 – June 30, 20232026
CITY OF STOCKTON 3

7. Deduction notification will be provided to [email protected]

8. Changes, and/or cancellations, re ceived by the City prior to the 15thth of the month will be processed no later than t he first pay period of the second month. Example: The Union notifies the City on January 15 thth, the deductions will be effective no later than t he first full pay period in March.

The parties recognize there is a lapse in time due to pay period processing constraints. The City will make every effort to process earlier if possible. (c) Hold Harmless Provision
The Union shall indemnify, defend, and hold the City harmless against any claims made and/or any suit against the City which may arise as a result of its deductions for membership dues or other programs sponsored by the Union.

2.2 New Hire Employee Orientat ion and Information Requirements (a) In accordance with Assembly Bill (AB)
119, the City shall pr ovide the Union i)
not less than ten (10) days’ notice in advance of new hire employee orientation, and ii) within thirty ( 30) days of hire or by the fi rst pay period of the month following hire a list containing the follo wing information on file from the City’s Human Resources database system. (currently HTE):

1. Name;

2. Job title;

3. Department;

4. Work location;

5. Personal c
ellular telephone numbers, including work and home;

6. Personal email addresses as prov ided by new hire employee; and

7. Home address.

The above information shall be updated and provided to the Union at least every one-hundred and twenty (120) days for all bargaining unit members.

ATTACHMENT A

WATER SUPERVISORY UNIT SUCCESSOR MOU
Term: July 1, 20192023 – June 30, 20232026

CITY OF STOCKTON 4

2.3 Use of City Facilities

(a) The Union shall be allowed by the City department in whic h it represents employees' use of space on available bu lletin boards for communications having to do with official Union business, such as times and places of meetings, provided such use does not interfere with the needs of the department. The Union may submit to the City Employee Relations Officer written communications having to do with official Union business for di stribution by the City to identified Union shop stewards. Distribution may be made by e-mail.

(b) Any representative of t he Union shall give notice to the department head or designated representative when cont acting department employees on City facilities during the duty period of the em ployees, provided that solicitation for membership or other internal Union business shall be conducted during the non-duty hours of all employees concerned. Pre-arrangement fo r routine contact may be made with individual department heads and when made shall continue until revoked by the department head.

(c) City buildings and other facilities may be made available for use by City Employees of the Union or their repr esentatives in accordance with such administrative procedures as may be est ablished by the City Manager or depart- ment heads concerned.

2.4 Advance Notice

Except in cases of emergency, reasonable advance written notice shall be given to the Union if affected by any ordinance, resolution, rule , or regulation directly relating to matters within the scope of representation proposed to be adopted by the City and shall be given the opportuni ty to negotiate if requested with the designated management representatives prior to adoption.

In cases of emergency, when the foregoing procedure is not practical or in the best public interest, the City may adopt or put into practice immediately such measures as are required. At the earlie st practicable date thereafter , the Union shall be provided with the notice described above and be given an opportunity, if requested, to negotiate changes to said notice with the management representatives designated by the City Manager.

2.5 Attendance at Meetings by Employees

City employees who are official representatives or unit representatives of the Union shall be given reasonable time off wit h pay to attend m eetings with City

ATTACHMENT A

WATER SUPERVISORY UNIT SUCCESSOR MOU
Term: July 1, 20192023 – June 30, 20232026

CITY OF STOCKTON 5

management representatives, or where matters within the scope of representation or grievances are being considered. Such employee representatives shall submit a request for excused absence to their respective department heads, in a manner satisfactory prior to the scheduled meeting whenever possible. Time spent for these purposes while a representative is not scheduled to work shall not be compensated by the City and shall not be considered as hours worked. Except by mutual agreement, the number of the employees excused for such purposes shall not exceed three (3) per recognized bargaining unit.

2.6 Maintenance of Membership

All employees in the Water Supervisory Unit who are members of the Union, tendering periodic dues at the execution of this agreement, and all employees who thereafter become members of the Union shall, as a condition of employment, pay dues to the Union for the duration of this Memorandum of UnderstandingMOU, and each year thereafter. For a period of thirty (30) days prior to January 1, 2009, and thirty (30) days prior to any January 1, thereafter, any employee in the aforementioned unit who is a member of the Union shall have the right to withdraw from the Union discontinuing dues payment s and retain employment in the City ., subject to provisions of Section 2.2. Agency Fee. Said withdrawal shall be communicated by the employee in writing to the City. The provisions of this section shall be operative only to the extent that they are permissible under California law.

2.7 Assignment of Classifications

New job classifications established by the City shall be assigned to the bargaining unit pursuant to Section 8 (b) of the City ’'s Employer-Employee Relations Resolution after providing notice and the opportunity to consult with the Union regarding such matters.

2.8 Contract Ratification

Ratification votes for Contract will be handled on Ccity time during the day.

Section 3. Compliance with Federal Laws/Safety

3.1 Non-Discrimination. The City and the Union agree that there shall be no discrimination of any kind on the basis because of age (over 40), race, creed, color, religion (creed) , national origin, (ancestry), military or veteran s status, physical andor mental disability, medical condition, genetic information, marital status, sexual orientation, sex ( gender based includingsexual, gender based, pregnancy/childbirth, breastfeeding or related medical conditions ), gender identity/expression, political affiliation or legitimate union activity or on any other

ATTACHMENT A

WATER SUPERVISORY UNIT SUCCESSOR MOU
Term: July 1, 20192023 – June 30, 20232026

CITY OF STOCKTON 6

basis prohibited by applicable Ffederal and State law against any employee or applicant for employment.

3.2 Fair Labor Standards Act. The Union agr ees to cooperate with the City to insure its members'’ compliance with the provisions of the Fair Labor Standards Act (FLSA).

3.3 Safety. The Union shall cooperate with the City in promoting safety objectives as defined in Federal, State, and local regulations by actively supporting safety programs, promoting safe work habits of members, and encouraging an ongoing, active participation by its members in safety safety-related procedures and practices as offered and promulgated by the City of Stockton.

Section 4. Probation

4.1 Purpose

The probationary period shall be utilized for closely observing the employee '’s work, for securing the most effective adjustment of a new employee to a position, and for rejecting any probationary employ ee whose performance does not meet the required standards of work.

4.2 Original Entrance and Promotional Positions

All original appointments shall be subject to a probat ionary period of one (1) year with a review completed after six (6) months from date of original appointment.

Promotional appointments shall be subject to a probationary period of six (6) months. The probationary period for original and promotional appointments will not be extended.

4.3 Retention/Reject ion of Probationer

At the end of the pr obationary period, if the service of the probationary employee has been satisfactory to the appointing authority, then the appointing authority shall file with the Director of Human Resources a statement in writing to such effect and stating that the retention of such employee in the service is desired. The City will make a good faith effort to notify a probationary employee two (2) weeks before the end of the probationary period whether or not regular status is granted; however, a failure on the part of the appointi ng authority to file such a statement at the end of the probationary period shall not constitute a rejection of the probationer as defined in Civil Service Rules.

During the probationary period an employee may be rejected at any time by the

ATTACHMENT A

WATER SUPERVISORY UNIT SUCCESSOR MOU
Term: July 1, 20192023 – June 30, 20232026

CITY OF STOCKTON 7

appointing authority. Any employee rejected during the probationary period following a promotional appointment, shall be reinstated to the position from which promoted unless charges are filed and the employee is discharged in the manner provided in sSection 7 of this Memorandum of UnderstandingMOU and in the Civil Service Ordinance and Civil Service Rules, which are consistent therewith.

4.4 Alcohol and Drug Testing.

All employees hired into original and reemployed appointments in safety-sensitive positions identified by t he City must pass a drug and al cohol screening prior to being offered City employment due to pos itions requiring a commercial driver’s license or hazardous material certification. This shall include non-represented part- time, seasonal, provisional, and temporary appointments.

Section 5. Layoff

5.1 Layoff

Any employee may be laid off by an appointing authority in the event of the abolition of the employee'’s position by the City Council, or if a shortage of work or funds requires a reduction in personnel.

5.2 Layoff Scope

(a) Layoffs shall be within departments of the City.

(b) Departments of the City are defined as follows:

(1) Administrative Services
(2) City Attorney
(3) City Auditor
(4) City Clerk
(5) City Manager
(6) Community Development
(7) Community Services
(8) Economic Development
(9) Fire
(10) Human Resources
(11) Information Technology
(12) Municipal Utilities
(13) Police
(14) Public Works

ATTACHMENT A

WATER SUPERVISORY UNIT SUCCESSOR MOU
Term: July 1, 20192023 – June 30, 20232026
CITY OF STOCKTON 8

5.3 Notice of Layoff
The City will give advance written notice of at least one (1) pay period to employee s
who will be laid off.

5.4 Precedence by Employment Status
(a) No regular status employees shall be laid off while employees work ing in
an extra help, seasonal, temporary, provisional, or probationary status are retained in the same classification as such regular status employee. The order of layoff among employees not having regular status shall be according to the following categories:
(1) extra help or seasonal
(2) provisional
(3) temporary
(4) probationary
Layoffs shall be by job classification acco rding to reverse order of seniority as determined by total service in that class, except as specified above. For the purpose of this procedure part-time classes shall be considered as separate from regular full-time classes.

The following provisions shall apply in computing total continuous service:
(1) Time worked in a regular status or probationary
status shall count as service.
(2) Time spent on military leave shall count as
service in the event the leave was taken
subsequent to entry.
(3) Time worked in an extra help, seasonal,
provisional, temporary, grant or other limited
term status shall not count as service.

If two (2) or more employees have the same seniority, the order of seniority shall be determined by their respective ranking on the eligibility list for hire.

If two (2) or more employees have the same seniority, but were not hired from a ranked eligibility list, the order of seniority shall be determined by lot.

If two (2) or more employees have the same seniority, but were hired from separate ranked eligibility lists, the order of seniority shall be determined by lot.

ATTACHMENT A

WATER SUPERVISORY UNIT SUCCESSOR MOU
Term: July 1, 20192023 – June 30, 20232026

CITY OF STOCKTON 9

(b) (b) Any employee in the Water Supervisory Unit who is laid off may complete a City employment application for any posit ion currently staff ed by a part time, provisional, or temporary employee. The Human Resources Department will evaluate the employment application. If the laid off employee meets the minimum qualifications of that position, he/shethey shall have the option of displacing the part time, provisional, or temporary employee.

5.5 Employee Options

Employees laid off shall have any of the following choices:

(a) Displacing the employee in the same department and in the same or clearly comparable classification as determined by the Director of Human Resources as having the least seniority in that classi fication. This option shall be exercised before any other option.

(b) Taking a voluntary demotion within the department to a classification in which the employee had prior regular status, thus displacing the employee working in the classification who has the least seniority in that classification.

5.6 Health and Welfare Benefits during Layoff

Regular status employees who are laid off will have an option of maintaining their existing health and welfare benefits for thirty -six (36) months from the date of layoff, provided timely payments of the pr emiums by the employee are made to the City, according to City regulations, and provided the employee otherwise meets the requirements of Federal and State regulations.

Section 6. Reemployment
(a) The name of each employee who is laid off in accordance with sSection 5 shall be placed at the head of the eligibility list for the class of positions which that employee held, and shall be given preference in filling vacancies in that class.

(b) An employee laid off in accordance with this sSection shall be placed on the eligibility list or lists for any lower or comparable class or classes in the same department, provided that the appointing authority and the department head in charge of this lower or comparable class determine that the employee is competent to perform the duties thereof in strict accordance with the class specifications. This right of a laid off employee shall remain effective for two (2) years from the date of latest separation from the service. T he employee shall not be placed on said eligibility list or lists without first submitting a written request. Employee'’s place

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on said list or lists shall be at the head of the eligibility list for the class of positions for which qualified as hereinabove set forth and shall be given preference in filling vacancies except for those persons placed on said list or lists of reemployment in the same positions previously held. An employee who waives reemployment to a full time position three (3) times shall have his/hertheir name removed from this reemployment list unless mutually agr eed to by the Department and employee.

Upon certification for appointment to a new position never having been held by this employee, the probationary period must be completed as required in this Memorandum of UnderstandingMOU.

Section 7. Discipline
Disciplinary action, including discharge, suspension, reduction in pay or demotion, may be taken against any employee for cause.

Expungement of records will be consid ered in accordance with the City’s Progressive Discipline Policy, HR-08. Memorandums of Discussion or Correction maintained in Department files may be r equested to be removed, subject to the Department Head’s approval.

7.1 Pre- disciplinary Rights

An employee facing potential disciplinary action will be entitled to the following pre- disciplinary rights:

(a) Notice of proposed discipline.

(b) Date(s) proposed discipline will be effective.

(d) Ten (10) calendar days in which an employee or the representative may respond either orally or in writing to the department head.

(e) The employee must be provided with any written materials, reports and documents upon which the action is based.

7.2 Administrative Leave

The City may place an employee on adminis trative leave with pay pending the completion of the pre-disciplinary process.

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7.3 Provisions

The appointing authority may discharge, suspend, or demote any employee in the classified service provided the Stockton Municipal Code provisions and the rules and regulations of the Civil Service Commi ssion and any applicable provisions of law are followed. Such provisions allow the employee suspended, demoted or discharged to appeal such action. The employee may take only one (1) of the following actions:

(a) File no appeal.

(b) File an appeal with the Civil Service Commission within ten (10) calendar days of written notification of the action. (Such filin g will foreclose use of the grievance procedure.)

If the employee fails to do (b) or (c) above within the prescribed time frames, these rights will have been waived.

Section 8. Grievance Procedures

8.1 Definition

A grievance is any dispute which involves the interpretation or application of those rules, regulations and resolutions which have been, or may hereafter be, adopted by the City Council to govern personnel practices and working conditions, including such rules, regulations and resolutions as may be adopted by either the City Council or the Civil Service Commission to affect Memoranda of Understanding which result from the meeting and conferring process.

8.2 Filing Deadline

(a) No grievance involving demoti on, suspension, discharge or other employment penalty will be entertained unless it is filed in writing with the Director of Human Resources within ten (10) calendar days of the time at which the affected employee received written notif ication of such action. All other grievances must be filed within thirty (30) calendar days from the time the employee knew or had reason to know of the facts giving rise to the grievance.

(b) With written consent of the Director of Human Resources or his/hertheir designee and the Union Business Agent or his/hertheir designee, time limits may

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be extended and/or Steps 1, 2 and/or 3 of the Grievance Procedure waived.

8.3 Grievance Processing

(a) Step 1 - Departmental Review. Any employee claiming to have a grievance may discuss the complaint with such management official in the department where employed as the department head may designate. If t he issue is not resolved within the department within twenty (20) calendarworking days from the day of presentation or if the employee elects to submit the grievance directly to the Union recognized as the representative of that employee's classification, or if the employee/Union official notifies the Director of Human Resources, in writing, that a grievance exists, the procedure hereinafter specified may be invoked.

(b) Step 2 - Director of Human Resources Review. If the employee is not satisfied with the response at levelStep one (1), then the employee may appeal the grievance to the Director of Human Resources within twenty (20) calendar days of the receipt of written response at levelStep one (1) . Such appeal must state with particularity: 1) the specific policy, rule , or provision which is alleged to have been violated; 2) the statement of facts comprising the violation; and 3) the requested remedy. The Union may file and process grievance(s) on behalf of the specifically named employee. The Director of Human Resources shall have twenty (20) calendarworking days (in which the Human Resources Office is open)in which to investigate the issues , meet with the complainant , and attempt to reach a satisfactory resolution of the problem. No grievance may be processed under the following two (2) paragraphs which has not first been filed and investigated in accordance with this paragraph, except for the resolution of compensation complaints.

(c) Step 3 - Arbitration. If the parties are unable to reach a mutually satisfactory accord on the grievance at Step two (2) within twenty (20) calendar days either the Union or the City may require that the grievance be referred to an impartial arbitrator mutually selected by the parties, or if the par ties are unable to mutually agree, from a list of seven (7) arbitrators provided by the State Conciliation Service.

The arbitrator shall be chosen by the alter native strike method, with first choice being determined by lot. The fees and expens es of the arbitrator and of a court reporter shall be shared equally by both parti es. Each party, however, shall bear the cost of its own presentation, includ ing preparation and post hearing briefs, if any.

(d) Effect of Decision. Decisions of arbitrators on matters properly before them shall be final and binding on the parties hereto except as provided otherwise herein.

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8.4 Scope of Arbitration

(a) No arbitrator shall entertain, hear , decide or make recommendations on any dispute unless such dispute involves a position in a unit represented by the Union and unless such dispute falls within the defi nition of a grievance as set forth in sectionparagraph 8.1.

(b) Proposals to add to or change this Memorandum of UnderstandingMOU or written agreements or addenda supplementary hereto shall not be arbitrable and no proposal to modify, amend or terminate this Memorandum of UnderstandingMOU, nor any matter or subject arising out of or in connection with such proposal, may be referr ed to arbitration under this sSection. No arbitrator selected pursuant to this sSection shall have the power to amend or modify this Memorandum of UnderstandingMOU or written agreements or addenda supplementary hereto or to establish any new terms or conditions of employment.

No changes in this Memorandum of UnderstandingMOU or interpretations thereof (except interpretations resulting from arbitration proceedings hereunder) will be recognized unless agreed to by the Director of Human Resources and the Union.

8.5 Other Provisions

If the Director of Human Resources or City Manager, in pursuance of the procedures outlined above, resolve s a grievance which involve sd suspension or discharge, they may agree to payment for lost time or to reinstatement with or without payment for lost time, but in the event the dispute is referred to arbitration and the arbitrator finds that the City had cause to take the action complained of, the arbitrator may not substitute histheir judgment for the judgment of management and if the findings are that the City had such right, the arbitrator may not order reinstatement and may not assess any penalty upon the City.

Complaints which allege the employee is not being compensated in accordance with the provisions of this Memorandum of UnderstandingMOU shall be considered as grievances and processed pursuant to sSection 8.3. Any other matters of compensation are to be resolved in the meeting and conferring process and if not detailed in the Memorandum of Understanding MOU which results from such meeting and conferring process shall be deemed withdrawn until the meeting and conferring process is next open for such decision. No adjustment shall be retroactive for more than one-hundred and eighty (180) calendar days from the date upon which the complaint was filed.

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Specified time limits may be modified only in writing. All appeals and responses must be provided in writing.

A grievant will be provided release time without loss of pay for all required meetings with management. The City cannot discriminate or retaliate in any manner against an employee for filing a grievance or exercising rights under this Section.

The provisions of this sSection shall not abridge any rights to which an employee may be entitled under the Stockton Municipal Code and/or Civil Service Rules and Regulations, nor shall it be administe red in a manner whic h would abrogate any power which, under the Stockton Municipal Code, may be within the sole province and discretion of the Civil Service Commission.

All grievances of employees in representation units represented by the Union shall be processed under this sSection. If the Stockton Municipal Code and/or the Civil Service Rules and Regulations requires that a differing option be available to the employee, no action under paragraph (c) of sSubsection 8.3 above shall be taken unless it is determined that the employee is not utilizing such option.

No action under paragraph (c) of sSubsection 8.3 above shall be taken if action on the complaint or grievance has been taken by the Civil Service Commission or if the complaint or grievance is pending before the Civil Service Commission.

If any award by an arbitrator requires action by the City Council or the Civil Service Commission before it can be placed in effect, the City Manager and the Director of Human Resources will recommend to the City Council or the Civil Service Commission, as appropriate, that it follow such award.

Section 9. Leaves

9.1 Vacation Leaves

All regular status employees, excluding provisional, and temporary, and part-time employees, shall accrue vacation leave with pay in accordance with the following schedules:

(a) Vacation- FLSA Non-Exempt employees shall accrue vacation leave with pay in accordance with the following schedule:

(1) Less than one and one-half (1-1/2) years continuous employment .............................................................. 80 hours/year.

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(2) After one and one-half (1-1/2) to seven and one-half (7-1/2) years continuous employment ................................ 108 hours/year.

(3) After seven and one-half (7-1 /2) to fifteen (15) years continuous employment .......................................... 144 hours/year.

(4) After fifteen (15) to twenty-five (25) years continuous employment ............................................................ 189 hours/year.

(5) Thereafter, seven (7) additional hours for each completed year of service in excess of twenty-five (25) years.

(6) Employees shall accrue vacation on a twice-monthly payroll per pay period basis.

(b) FLSA Non-Exempt Employees Maximum Vacation Accrual
Employees reaching the maximu m hours shall stop accruing additional hours until they ar e below the caps listed herebelow. No vacation hours maybe added to sick leave and balances . without exception.

Maximum Vacation Accrual Caps.

40 hour employee
Under 1.5 yrs 120 hours (15 days)

1.5-7.5 yrs 240 hours (30 days)

7.5-15 yrs 280 hours (35 days)
15-25 yrs 320 hours (40 days)
26 yrs 328 hours (41 days)
27 yrs 336 hours (42 days)
28 yrs 344 hours (43 days)
29 yrs 352 hours (44 days)

For every year of service beyond 29, the employee is allowed to add an additional seven (7) hours to the maximum accrual cap.

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(5) Seven (7) additional hours for each completed year of service in excess of twenty-five (25) years.
(6) Employees shall accrue vacation on a twice-monthlyper pay period payroll basis.

(d) FLSA Exempt Employees Maxi mum Vacation Accrual. Employees reaching the maximum hours shall stop accruing additional hours until they are below the caps listed here. No vacation hours may be added to sick leave balances. without exception.

The maximum number of vacation hours that FLSA exempt employees shall accrue are as follows:

Under 1.5 years 200 hours

1.5 – 7.5 years 320 hours

7.5 – 15 years 360 hours
15 – 25 years 400 hours
25 years 408 hours
26 years 416 hours
27 years 424 hours
28 years plus 7 hours each additional year

(e) An employee may elect to receive cash payment for up to a maximum of forty (40) hours of accumulated vacation hours annually except that all cash outs shall be suspended during furl ough or fiscal emergency periods, however, effective for FY 202320/202421, 2021/2022 and 202422/202523 only, an employee may elect to receiv e a cash payment for a maximum of forty (40) hours of theirhis/her unused accumulated vacation balance after the use of a scheduled vacation of fort y (40) consecutive hours or more in that same or prior fiscal year. To utilize this option, employees must maintain a balance of (forty) (40) accrued vacation hours after the cash payment. When in effect, this option may be exercised once per fiscal year.

Employees may elect this option by December 31 of each year for the cash out the followin g calendar year. The cash out election is irrevocable and the City will follow IRS regulations regarding cash payment of leave.

(f) Vacation Cash Out Upon Separation.

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regularly scheduled pay period pay dat e following separation. Prior to separation from City service, the City does not pr ovide to employees any vacation cash out or sell back for accrued but unused vacation hours.

(g) Vacation Scheduling.

Vacation leaves will be scheduled so that they will not interfere with the normal operation of the City’s business and with due consideration for the wishes of the employee. Each divi sion will prepare it s vacation schedule and distribute to all employees within the unit.

9.2 Sick Leave

(a) Accrual. All regular status full-time employees, except provisional , and temporary employees, shall accrue sick leave at the rate of eight (8) hours for each month of completed service.

All regular status employees, except provisional , and temporary employees, scheduled to work less than a full month shall accrue sick l eave on a prorated basis. Unused sick leave shall accrue from year to year. Employees shall continue to accrue sick leave while off duty on authorized sick leave; provided, however, an employee shall not accrue sick leave during any leave or leaves of absence without pay granted to the employee.

(b) Usage. Employees are entitled to sick leave pay for those days which the employee would normally have worked, to a maximum of the hours accrued, described as:

Preventive medical, dental, optical care, ill ness, injury or exposure to contagious disease which incapacitates the employee from performing normal work duties.

This includes disabilities caused or contributed by pregnancy, miscarriage, abortion, childbirth and recovery therefrom.

(c) Family Sick Leave. Employees may utilize up to one-half (1/2) of their annual sick leave accrual in the case of illness or injury in the employee's immediate family when such illness or injury requires personal care.

Such leave shall be restricted to the em ployee's parents, spouse, mother-in-law, father-in-law, child, stepch ild, brother, sister, brothe r-in-law, sister-in-law, grandparent, grandchild, legal dependent, and registered domestic partner., and “designated person.” For purposes of pai d sick leave, a “designated person” means “a person identified by the employee at the time the employee requests

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paid sick leave.” An employee may select one person as a “designated person” in a twelve (12) month period.

In special cases, with the approval of the Director of Human Resources, a department head may grant the use of sick leave in other circumstances.

It is not the intent of this provision to conflict with any state or federally mandated policies, such as the Fa mily Medical Leave Act ( “FMLA”), the California Family Rights Act (“CFRA”), or Pregnancy Disability Leave (“PDL”).

(d) Reporting Procedures for Sick Leave. When the requirement for sick leave is known to the employee in advance of the absence (for example, including but not limited to scheduled medica l, dental or vision appo intments), the employee shall request authorization for such si ck leave from the department head prior to such absence. In all other inst ances, the employee shall notify his/hertheir supervisor as promptly as possible of his/her absence.

(e) Verification Procedures

(1) Before being paid for the use of accrued sick leave, the employee shall submit a signed st atement to the department head, on a prescribed form, stating the dates and hours of abs ence, the exact reason, and such other information as is necessary for t he request to be evaluated. If an employee doesn't return to work prior to the preparation of the payroll, other arrangements may be made with the department head.

(2) Doctor's Certificat e or Other Proof. The employee’s department head may require a doctor’s certificate or other reasonable proof of illness as he/shethey deem s necessary in order for an employee to receive an excused absence from work and sick leave pay. The employee shall be given notice prior to returning to work that he or shethey will be required to provide such documentation. Employees who have unscheduled absences due to illness on a scheduled work day preceding or following a holiday may be required to bring a doctor’s certificate or other reasonable proof of illness in order to receive an excused abs ence and sick leave pay. If an employee’s illness results in an absence from work for more than three (3) consecutive days, a doctor’s certificate or other reasonable proof of illness may be required. In addition, the City may monitor and control the appropriate use of sick leave by em ployees and if reasonable cause is articulated, can limit use of sick leave and require additional verification.

(f) Use of Sick Leave While on Vacation. An employee who is injured or who

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becomes ill while on vacation may be paid for sick leave in lieu of vacation provided that the employee:

(1) Was hospitalized during the period for which sick leave is claimed, or

(2) Received medical treatment or diagnosis and presents a statement indicating disabling illness or inju ry signed by a physician covering the period for which sick leave is claimed.

(g) (Payment for Unused Sick Leave for Unit Employees. Effective February 17, 2012, all accumulated or future accruals of sick leave shall have no cash value upon separation of employment and employees shall not be allowed to cash out unused sick leave except as provided below.

(h) CalPERS Service Credit for Unus ed Sick Leave. Employees shall be eligible for CalPERS servic e credit for any unused sick leave at retirement not otherwise compensated for in (i) below. Employees hired on or after December 29, 2012 shall not be eligible for this service credit.

(i) Sick Leave Retention Benef it. If, after subtracting the equivalent of one (1) full year of service credit (2080 hours), which may be applied to CALPERS service credit, any balance remaining upon separa tion shall be paid as follows to employees who have remained in City service until the dates specified:

(1) Separation prior to July 1, 2014, no payment of unused sick leave at separation shall occur for separating employees before this date;

(2) Separation between July 1, 201 4 and June 30, 2015, payment of unused sick leave which the employee held on February 16, 20122/16/12 shall be paid at thirty-five percent (35%) of its cash value to separating employees between these dates; and

(3) Separation after July 1, 2015, payment of unused sick leave which the employee held on February 16, 20122/16/12 shall be paid at fifty percent (50%) of its cash value to separating employees after this date.

(4) Service credit for unused sick leave shall be in accordance with PERS regulations.

9.3 Other Leaves with Pay

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(a) Bereavement Leave. In the event of a death in the immediate family of an employee, the employee shall, upon request , be granted up to three (3) days bereavement leave with pay without charge to histheir accumulated sick leave credits or vacation eligibility. The department heademployee shall, upon request, be may granted an additional two (2) days bereavement leave upon request which shall be charged against the empl oyee’s accumulated sick leave or annual leavecredits. in cases where extensive travel is required to attend the funeral. For the purposes of this paragr aph, the immediate family shall be restricted to the employee’s parents, spouse, mother-in-law, father-in-law, child, stepchild, brother, sister, brother-in-law, sister-in-law, grandparent, grandchild, and registered domestic partner.

In the event of the death of a person not immediatel y related to an employee as defined above, the employ ee's department head may grant up to three (3) days bereavement leave, upon request, which shall be charged against the employee's accumulated sick leave creditsor annual leave.

Bereavement Leave will not be counted against the employee under the City’s absence control policy when evaluating the employee’s work performance. If the deceased is the person who is the empl oyee’s current “designated person” for purposes of family sick leave pursuant to Section 9.2(c), the request to use sick leave or annual leave shall not be unreasonably denied.

(b) Court Appearance. Upon approval by the department head, an employee, other than a provisional or temporary employee, shall be permitted authorized absence from duty for appearance in Court because of jury service, in obedience to subpoena or by direction of proper aut hority, in accordance with the following provisions:

Said absence from duty including necessary travel time, will be for actual hours served on jury duty or testifiesying as a witness in a criminal case, other than as a defendant. This shall include the time fr om when the employee is ordered to appear until the time the employ ee is released from the c ourt. As a condition of receiving such pay, the employee must re mit to the City, through the employee's department head, within fifteen (15) days afte r receipt, all fees received except those specifically allowed for mileage and expenses.

If an employee is not due to appear for jury duty or as a witness until an afternoon court session, the employee will be expected to work histheir usual morning schedule. If an employee is required to appear for a morning court session and is sent home before noon and not r equired to return in the afternoon, the employee will be expected to work his usual afternoon schedule.

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Said absence from duty will be without pay when the employee appears in private litigation to which the City of Stockton is not a party.

Any fees allowed, except for reimbursement of ex penses incurred, shall be remitted to the City through the employee's department head.

Notwithstanding the foregoing, attendance in court in connection with an employee's official duties or inon behalf of the City of Stockton in connection with a case in which the City of Stockton is a party, together with travel time necessarily involved, shall not be considered abs ent from duty within the meaning of the sSection.

(c) Military Leave. An empl oyee of the City who is a member of the National Guard or Naval Militia or a member of the Reserve Corps or Force of the Federal Military, Naval or Marine Service and is ordered to duty shall be granted leave with pay while engaged therein, provided the leave does not exceed thirty (30) days in any calendar year.

All regular status employees in the service of t he City shall be allowed leave of absence without pay for duration of a national emergency who have been inducted into the Army, Navy, Marine Corps, Air Fo rce or any other branch of the Military Service of the United States or the State of California. Said employees shall be reinstated in the position they held when th ey were inducted into Military Service, except as hereinafter stated, providing they are physically fit as shown by a medical examination by the City Physician or other physician appointed to make a medical examination.

In the case of a probationary employee having served a minimum probationary period of six (6) months at the time of induction, it shall be optional with the department head and the Director of Human Res ources to grant regular status to said employee before induction.

All probationary employees inducted into Military Service not having served the minimum probationary period of six (6) months, or having served the minimum probationary period of six (6) months, but not having received regular status shall be allowed a leave of absence without pay fo r the duration of a national emergency, but said employees shall be pl aced at the head of the eligible list for such position in the order of their seniority of employment and when appointed to a vacant position, they must be physica lly fit as above specified and shall serve the balance of their probationary period befor e attaining the status of a regular status employee.

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Two (2) or more regular status employees granted a military leave of absence without pay from the same position shall be reemployed according to their seniority of employment providing they are physically fit as above specified.

9.4 Workers' Compensation Leave

(a) Benefits. Workers’ Compensation benefits shall be provided in accordance with State law, whenever an employee is ab sent from duty because of disability caused by illness or injury which has been declared to be compensable under the Workers’ Compensation Law. An employee on Workers’ Compensation may use accrued leave, if needed, to supplement benefits, up to the amount required to receive a full paycheck.

(b) Forms and Procedures. Workers’ compensation processing shall be consistent with City procedures and in accordance with state workers’ compensation regulations. An employee who sustains a work-related injury or illness shall immediately inform his/hertheir supervisor no matter how minor an on- the-job injury may appear. An employee who sustains a work-related injury or illness is required to seek medical care at facilities designated by the City unless they have filed a pre-designation of personal physician prior to sustaining the work- related injury or illness. For a list of City designated medical care facilities and/or physicians, please contact the Human Resources department.

9.5 Leave of Absence

(a) Entitlement. Employees shall not be entitled to a leave of absence as a matter of right, but only in accordance with the provisions of law and the City of Stockton Municipal Code. Un less otherwise provided, the granting of a leave of absence also grants to the em ployee the right to return to a position in the same classification or equivalent classification, as the em ployee held at the time the leave was granted. Leaves of absence are subject to eligibility in accordance with state and federal guidelines. The granting of any leave of absence shall be based on the presumption that the employee intends to return to work upon the expiration of the leave.

(b) Approval. All leaves of absence wit hout pay must be pre-approved by the department head and filed with the Human Resources Department. No such leave may extend beyond twelve (12) months, except in the case of absence due to job incurred disability where a determinat ion may be made based upon the needs of public service, or in the event an applic ation for service connected disability retirement has been filed.

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(c) All leave s without pay must be recommended by the department head and approved by the Director of Human Resources. Leaves of absence approved in accordance with state and federal guidelines may be taken without pay for illness following the exhaustion of accrued sick, vacation, and other accrued leave hours.

(d) City payment of premium shall end on the last day of the month in which the employee was paid except that employees on an authorized leave of absence may continue enrollment in the City health and dental insurance plan by prepayment of the monthly premium during the authorized leave of absence.

(e) Authorized absence wit hout pay which exceeds thirty (30) consecutive calendar days, except military leave, s hall not be included in determining salary adjustment rights, based on length of empl oyment. Periods of time during which an employee is required to be absent from his/hertheir position by reason of an injury or disease for which he/shethey isare entitled to and currently receiving Workers' Compensation benefits shall be in cluded in computing length of service for the purpose of determining that employee's salary adjustment.

9.6 Absence Without Official Leave (AWOL)

(a) Failure to Report to Duty or Failure to Return after Leave. Failure to report for duty or failure to report for duty af ter a leave of absence request has been disapproved, revoked, or canceled, or at the expiration of a leave, shall be considered an absence without official leave and shall be subject to discipline.

(b) Voluntary Resig nation. Any employee absent without official leave for two (2) or more consecutive scheduled days without a satisfactory explanation as approved by the Human Resources Director of Human Resources shall be deemed to have voluntarily resigned from the City of Stockton. An employee must provide a written statement to the Human Resources Department regarding a "satisfactory explanation", within ten (10) calendar days after the City mails a notice of voluntary resignation to the employee's last known address.

9.7 Parental/Adopti on/Pregnancy Leave

Family medical leaves shall be in accor dance with the Family Medical Leave Act (“FMLA”) of 1993, the California Family Rights Act (“CFRA”), or Pregnancy Disability Leave (“PDL”), and/or other applicable state and federal laws.

Section 10. Days and Hours of Work

10.1 Workweek

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The forty (40) -hour workweek shall be from Sunday at midnight through the following Saturday at midnight. The 9/80 workweek shall be from Friday at middle of regular shift through the following Friday at middle of regular shift.

10.2 Meal Periods and Rest Periods

(a) Employees shall receive a one (1) hour or one-half (1/2) hour meal period, without pay, each day and a fifteen (15) minute paid rest period during the first half of the work day and a second fifteen (15) minute paid rest period during the second half of the work day.

(b) Where operational requirements of a department require deviations from this schedule, meal periods of other durat ions and alternate rest periods may be instituted with the approval of the Department Head or Designee.

Section 11. Overtime

11.1 Overtime Authorization

All compensable overtime must be authorized by the department head or his/hertheir designated representative in advan ce of being worked. If prior authorization is not feasible because of emergency conditions, a confirming authorization must be made on the next regular working day following the date on which the overtime was worked.

11.2 Definition

The following provisions perta ining to authorized or stat utorily required overtime work shall apply to non- FLSA exempt employees:

(a) Statutory overtime shall be paid on act ual time worked in excess of forty (40) hours in any workweek. Such overtime shall be paid for at time and one-half (1-1/2) including employees employed on a per hour or per day basis or except as provided elsewhere herein. Observed holidays, floating holidays, jury duty leave, bereavement leave, and sick leav e hours taken shall be considered as time worked for overtime calculati on purposes. Vacation, or other compensated time off shall not be considered as actual time worked.

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including employees employed on a per h our or per day basis, or except as provided elsewhere herein.

(c) The City may require mandatory overtime when operational needs of the City dictates the need to work such ov ertime. Work in exce ss of forty (40) hours worked as defined in (a) above in any workweek that qualifies for overtime will be paid or taken as Compensatory Time-off (CTO) in accordance with Ssection

11.5(b).

(d) Exempt Status of Classifications

The classifications of Laboratory Supervisor, Occupational Health & Safety Compliance Specialist, Regulatory Compliance Officer, Senior Plant Maintenance Supervisor, Senior Plant Operations Supervisor, Senior Collection Systems Supervisor and Water Systems Superintendent will be exempt from overtime as provided by the Fair Labor Standards Act and will be considered Exempt in the City’s attendance and pay policies, and for the accrual of vacation.

(de) Temporary Upgrade Pay.

Employees who are not FLSA exempt and are assigned to work overtime in a position or classification other than t he position or classification to which they are permanently appointed to, will be paid overtime at the hourly rate attached to the position or classificati on in which they are performing such overtime work.

11.3 Standby Duty

When warranted and in the interest of the City operation, department heads or designee may assign employees to "standby" status.

(a) Application of "standby" shall be as follows:

(1) Each employee so assigned to "standby" shall be provided with a communication device while on standby and shall be able to report to the work site with best efforts within thirty (30) minutes; in no event longer than forty-five (45) minutes.

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(2) Employees on standby shall hav e the option to trade hours of standby status with another qualified employee in the same unit or division with departmental approval.

(3) Standby shall be assigned in a minimum of eight (8) hours.

Standby for weekends i.e., Saturday, Sunday or extended holiday weekends (Friday – Sunday, or Saturday – Monday) will be assigned eight (8) -– forty-eight (48) hour blocks to one (1) person per weekend (up to seventy-two (72) hours for holiday weekend).

(b) Compensation of "standby" shall be as follows:

(1) Employees assigned to standby duty shall be paid three dollars ( $3.00) per hour, while assigned to be on standby. An employee shall earn time and one-hal f (1-1/2) for all actual time worked while on standby duty status onl y if eligible for overtime as defined in sSection 11.2 above. An empl oyee shall not continue to receive the “standby” premium during actual time worked, or for any hours paid as overtime or call back. Standby is not considered as time in “paid status because of work performed” for purposes of calculating overtime.

11.4 Call Back

Employees called back to wo rk from off duty status, the employee shall be compensated for a minimum of two (2) hours and forty-five (45) minutes pay at time and one-half (1-1/2) or actual time worked at time and one-half (1-1/2) if eligible for overtime as defined in Section 11.2, above, whichever is greater.

When authorized by the department, empl oyees who are contacted and who provide remote support via telephone, internet, or network connection will be paid time and one-half (1-1/2½) for time worked in fifteen (15) minute intervals, if eligible for overtime as defined in sSection 11.2 above. Intervals cannot be compounded or overlapped.

To be eligible for call-back pay, all of the following conditions must be met:

(a) The call-back must occur outside of the employee’s regular work hours; including overtime.

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(b) The call-back time worked must not be contiguous to the employee’s regular work hours; including overtime.

(c) An employee is ineligible to re ceive a premium for both standby and call back. For example, employees shall not receive standby pay for hours in which they are paid overtime or call back pay.

11.5 Compensatory Time

(a) Definition. As used in this section, the term Compensatory Time refers to that time which an employee is entitled to be absent from duty with pay for hours worked in addition to or excess of their normal work schedule.Time off with pay in lieu of overtime pay.

(b) Accrual. For hours worked in excess of forty (40) hours in a seven (7) day work period as defined in section 11.2(a), Compensatory Time shall be earned at the rate of time and one-half (1-1/2).

(c) Use. Use of Compensatory Time s hall be scheduled with the due consideration for the wishes of the employee and so as to not interfere with the normal operation of City business. Approval of request for use of Compensatory Time shall be at the sole discretion of the department head, but once approved, cannot be c hanged unless an emergency situation arises.

(d) Payment. Once one hundred (100) hours of Compensatory Time is accrued on the books, all other hours worked in excess of forty (40) hours in a seven (7) day work period will automatically be paid. At the end of each calendar year, all Compensatory Time will be ca rried forward (forty (40) hours maximum), unless the employee elects to have the compensatory balance paid. Carryover Compensatory Time cann ot exceed the forty (40) hours maximum.

Any Compensatory Time balance in excess of forty (40) hours remaining at the end of the calendar year will automatically be paid . unless the employee submits the Compensatory Time Deferral form to Payroll by November 1st. In order for the employee to be eligible for this option, they must have at least one (1) pre- approved scheduled day off in December. If the employee is unable to take days off as planned in December, the payout will occur in January.

11.6 Meal Allowance

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The City shall provide a meal allowance of FIFTEEN DOLLARS fifteen dollars AND NO CENTS ($15.00) for an employee who is held over and works a minimum of four (4) hours. Employees called back to work or ca lled back from a day off with less than two (2) hours notice hours’ notice shall qualify for the FIFTEEN DOLLARS fifteen dollarAND NO CENTS ($15.00) meal allowance when they work a minimum of four (4) hours. Extension of the work schedule or call-back must be properly authorized by the employee's supervisor or other designated personnel.

Section 12. Holidays

12.1 Qualifying for Holiday Pay

All regular status employees, excluding provisional and temporaryprovisional, temporary, and part-time employees, shall be entitled to take the holiday benefit at full pay not to exceed the employee’s regular work day for any one (1) holiday. For an employee working on a 4/10, 9/80 or 12 -hour work day plan, holidays shall be paid equivalent to the employee’s regularly scheduled work hours (e.g. 9 hours for 9- hour day or 8 hours on an 8 -hour day on the 9/80 sc hedule, or 12 hours of holiday pay for 12-hour shift).

12.2 Holidays Observed by the City

Effective January 1, 2020 and upon approval by the City Council on its regular agenda in accordance with the Ralph M. Br own Act employees shall receive the following holiday s on full pay for each of the below listed holidays. Unless otherwise provided in this section, the City observes the following holidays on the dates indicated:

(1) January 1………… .................................................................. New Years' Day (2) Third Monday in January (FLOATING) .......... Martin Luther King Jr.'s Birthday (3) Second Monday in February (FLOATING) .......................... Lincoln's Birthday (4) Third Monday in February (FLOATING) ....................... Washington's Birthday (5) March 31 (FLOATING) ................................................Cesar Chavez Birthday (6) Last Monday in May ................................................................... Memorial Day (7) July 4 .................................................................................. Independence Day (8) First Monday in September .............................................................. Labor Day (9) Second Monday in October (FLOATING).................................. Columbus Day (10) November 11 ........................................................................... Veteran's Day (11) Fourth Thursday in November .................................................... Thanksgiving (12) The day following the day known as Thanksgiving
(13) December 25 ............................................................................ Christmas Day (14) Birthday Holiday

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FLOATING Floating holidays must be scheduled and used by December 31 st of each year and do not carry forward into the subsequent year . There is no cash value for any unused floating holiday hours. While the floating holiday leave hours will be available as of January 1st each year, employees have not earned each of the floating holidays until the actual hol iday occurs; if an employee separates employment and has utilized more float ing holiday hours than earned, the employee’s vacation or compensatory ti me hours will be char ged for the same number of hours previously taken as floating holiday hours.

Birthday Holiday Leave. The department head , with due consideration for the wishes of the employee, may authorize the birthday holiday to be taken within sixty (60) calendar days beginning on the day ofafter the employee’s birthday.

For employees on a Monday through Friday workweek, if a fixed holiday falls on a Sunday, the following Monday will be observed. If holidays fall on a Saturday, the preceding Friday will be obser ved. For employees who work in a division staffed for twenty-four (24) hour operations, fix ed holidays that fall on a Saturday or Sunday will be observed on Saturday or Sunday respectively.

In order to receive Holiday Pay, the employee must work or be on a pre-approved paid status the day before and the day after the holiday, unless it is the employee’s regularly scheduled day or hours off.

An employee who takes a holiday off on a normally scheduled work day will receive a regular work day worth of holiday pay at their regular rate of pay, and the holiday hours count as time worked for FLSA overtime calculation purposes.

A holiday that falls on an employee’s normally scheduled day off will receive a regular work day worth of ho liday pay at their regular rate of pay, however the holiday hours will not be counted as time worked.

If an employee works on a holiday, the employee will receive a regular work day worth of holiday pay at their regular rate of pay, actual hours worked will be paid at the time and one half (1-1/2) and holid ay hours will not be counted as time worked.

If an employee works only partial hours on a holiday, partial holiday hours will be counted as time worked for FLSA overtime calculation purposes (up to the employee’s normal work day).

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12.3 Compensation for Holidays Worked

Prior approval for holiday work must be secured from the department head except in emergency situations where said approval cannot be obtained beforehand.

Section 13. Compensation and Allowance Other Than Base Salary

13.1 Public Employees’ Retirement System (P.E.R.S.) Benefits for Unit Employees Hired on or before December 28, 2012

(a) The City will pay seven percent (7%) of the employee's current base salary (employee's contribution) and other compensation as qualified by State law towards the (P.E.R.S.). Such amount s will be applied to the employee's individual account in accordance with California Government Code section 20691 unless modified below.

(b) The City's P.E.R.S. retirement plan is two percent (2%) at age fifty-five (55).

(c) The City's P.E.R.S. retirement pl an is modified to reflect California Government Code section 21024 (Military Service Credit as Public Service) and section 21027 (Military Service Credi t for Retired Persons) effective upon adoption by Stockton City Council an d Board Administration of the P.E.R.S.

(d) The City will provide P.E.R.S. Calif ornia Government Code Section 20692 (Employer Paid Member Contributions Converted to Payrate during the Final Compensation Period) as added P.E.R.S. benefit. At the beginning of the employee’s last year of employ ment, the employee will pay their employees’employee’s seven percent (7%) benef it cost through an automatic payroll deduction. The City will increase the base salary for those employees by the same additional c ontribution above the seven percent (7%), if any, for the last twelve (12) months of employment. Internal Revenue Service (IRS) Code 414H(2) will be concurrently implemented with P.E.R.S. Calif ornia Government Code section 20692, to be effective upon adoption by the Stockton City Counc il and P.E.R.S. Administration Board.

(e) The City will provide P.E.R.S. Calif ornia Government Code section 20965 (Credit for Unused Sick Leave) as added P. E.R.S. benefits, to be effective upon adoption by the Stockton City Counc il and P.E.R.S. Administration Board.

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(f) The City will provide P. E.R.S. California Government Code section 21574 (Fourth Level of 1959 Survivor Benefits) as added P.E.R.S. benefits, to be effective upon adoption by the St ockton City Counc il and P.E.R.S.

Administration Board.

(g) The City will provide P.E.R.S. Calif ornia Government Code section 21335 up to a five percent (5 .0%) Annual Cost-of-Living Allowance, as added P.E.R.S. benefit.

(h) Effective August 1, 2011, in consider ation of (a) above, employees hired on or before December 28, 2012 shall pay seven percent (7%) of the employee’s current base salary (e mployee contribution) and other compensation as qualified by state law towards the Public Employees’ Retirement System (P.E.R.S.) employ er’s share of co st for P.E.R.S. pension on a post-tax basis in the form of a payroll deduction.

13.2 Public Employees’ Retirement System (P.E.R.S.) Benefits for Unit Employees Hired on or After December 29, 2012

(a) The City amended its contract with P. E.R.S. effective December 28, 2012 to provide a new second tier retirement program of two percent (2%) at sixty (60) with a three (3) year average salary formula and no other additional P.E.R.S benefits for all unit employees hired on or after December 29, 2012.

(b) Employees hired on or after December 29, 2012 shall pay the entire seven percent (7%) of the em ployee’s current base salary (as the employee contribution) and any other compensation as qualified by state law towards the P.E.R.S. retirement benefit through a payroll deduction.

13.3 Public Employees’ Retirement System (P.E.R.S.) Benefits for Employees hired on or after December 29, 2012

(a) Employees with Reciprocity:

Employees hired on or after December 29, 2012, who had service under another Cal PERS agency or public retirement system with reciprocity prior to January 1, 2013, and a break in service of less than six (6) months and are considered classic employees by P.E.R.S. AB340, shall be subject to the P.E.R.S. pension formula of two ( 2%) at sixty ( 60) with no optional pension enhancements and the other provisions of the retirement tier they were hired under. Employees hired shall pay the entire seven percent (7%) of the employee’s current base salary (as the employee contribution) and any other compensation as qualified by state law towards Cal PERS

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retirement benefit through a payroll deduction.
(b) Employees without Reciprocity:

Employees hired on or after January 1, 2013, shall be subject to the P.E.R.S. AB340 pension formula of two percent (2%) at Sixty-two (62) with no optional pension enhancements and th e other provisions of the retirement tier they were hired under. Employees shall pay fifty percent (50%) of the City’s normal cost rate for the two (2%) at sixty- two ( 62) as determined by Cal PERS.

13.4 Uniforms

(a) The City shall provide uniforms for a ll employees assigned to this unit who are required to wear uniforms during the course of work.

(b) Safety Protective Footw ear Reimbursement Allowance. Effective July 1, 2024, for eEmployees required to wear safe ty protective footwear in accordance with the City Manager’s Administrative Directive, HR-34, and approved for safety protective foot wear reimbursement, the City will authorize safety protective footwear reimbursement in the amount of TWO HUNDRED DOLLARStwo hundred fifty dollars ($2 500.00) per fiscal year.

Employees shall be allowed to use any unused funds towards the purchase of insoles and socks.

13.5 Preventive Shots

Those employees in the M unicipal Utilities Department (MUD) whose work assignments involve potential exposure to hazardous waste waterwastewater shall, at the employee's option, be prov ided all necessary medical immunization available for the prevention of job incurred illness.

13.6 Special Driver's License Pay

Job classifications requiring a Class A and/or Class B Driver's License or Hazmat endorsement will receive special pay equal to one and one-half percent (1-1/2%) of top step of job classification.

Special Driver's License Pay will only be implemen ted with the concurrent implementation of the Oper ating Engineers' Local No. 3 - City of Stockton, Drug/Alcohol Safety Program.

13.7 Longevity Pay

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Effective June 20, 2011, longevity pay shall be eliminated. However, the City shall grandfather only those employees who comple te twelve (12) continuous years of service with the City as of June 30, 2012, with two and one-half percent (2.-1/25%) of top salary step of the employee’s pay range to the employee as a longevity incentive pay allowance. As of July 1, 2012, longevity incentive pay allowance for these grandfathered employees shall be reduced to one and one-half percent (1.- 1/25%).

13.8 Credit Union

The City will accommodate payroll deduction s to Operating Engineers' Local No. 3 Credit Union, within the limitations of City payroll system. Any modification costs will be borne by Operating Engineers' Local No. 3.

13.9 Education, Trai ning and Development

The City will provide internal and external training programs on a wide variety of subjects. Employee participation will be based on subject matter relevance to job requirements, budgetary constraints and workload demands. Any Training programs that employees are directed or authorized to participate by their department will be fully paid for by theat department. Costs paid by the City include tuition, registration fees, related materials, and mileage/meal reimbursement if the training is not located on City premises.

13.10 Certification, Certification Training and Special Certifications

(a) Certification dues or fees required of employees in their specialized fields of work will be reimbursed by th e City at the actual costs. Pre-approved training(s) to maintain a job- related certification will be paid at one-hundred percent (100%) by the City. The City will pay for two (2) attempts at passing the test.

(b) The City will offer a one - time add pay off the salary line for employees who receive State certification for water, wastewater, distribution, or California Water Environment Association (“CWEA”). All employees are eligible to obtain certification in Water and Wastewater.

Water,
Wastewater

Water Distribution

CWEA
One Time
Add Pay
Grade 5 Grade 4 and 5 Grade 4 $1,000.00
Grade 4 Grade 4 Grade 3 $ 500.00750.00

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Grade 2 $ 125.00200.00
Grade 1 $ 100.00150.00

A maximum of two (2) certification levels will be paid by the City in a calendar year to any one (1) employee. Certifications (at State specific levels) will be required for some positions. Loss of cert ifications shall result in the employee being demoted to the level according to their certification level. The employee will be moved back to his or hertheir former level if he or shethey obtained the necessary certification within 12 months. Any employee who loses or is denied a certification shall notify his or hertheir supervisor within seven (7) calendar days, and shall submit a copy of any notice received from the state or any other agency.

(c) An employee assigned to the wastew ater function in the operator series who receives and maintains a level 4 or 5 Waste WaterWastewater Operator Certification will receive the following quarterly amounts added to his or hertheir monthly paychecks for each waste waterwastewater grade level certification above a grade 3 certification that exceeds the certification level required for the position held. Any employee receiving such certification pay will perform duties authorized by such certification level as required when necessary due to operational needs.

One level above MQ $1,000.00
Two levels above MQ $2,000.00

(d) Effective upon the first full pay period following ratification of this MOU by the Union and approval by the City Council in 2023, an employee assigned to the Water Treatment or Distribution function in the operator series who receives and maintains a level 4 or 5 Wa ter Operator Certification (T or D) will receive the following quarterl y amounts added to their bi-monthly paychecks for each grade level certification above a grade 3 certification that exceeds the certification leve l required for the position held. Any employee receiving such certification pay will perform duties authorized by such certification level as requir ed when necessary due to operational needs.

One level above MQ $1,000.00
Two levels above MQ $2,000.00

Effective upon the first full pay period following ratification of this Memorandum of Understanding by the Union and approval by the City Council on its regular agenda in accordance with the Brown Act, Aa ny current employee who is receiving this

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certification pay who does not meet the requirement of being within the operator series of classifications shall be grandfathered in to continue receiving such add pay as long as other requirements are met as described above. Effective upon the first full pay period following ratification of this Memorandum of UnderstandingMOU by the Union and approval by the City Council on its regular agenda in accordance with the Brown Act no additional employees shall receive this certification pay unless all require ments above are met. In addition, any current employees who are receiving th is certification pay based upon a certification level which is required for the position held shall have this certification pay reduced accordingly.

13.11 Mileage Reimbursement for Private Vehicle Use

Employees who use their own vehicle on City business on a consistent and repetitive basis will be compensated at the current Internal Revenue Service (IRS) rate and in accordance with the City Manager's Administrative Directive, MAN-016, Section III.B.

13.12 Use of City Vehicles

Supervisors who perform emergency respon se and/or standby call-out duty shall have the option of taking home their assigned City vehicle on a daily basis.

Section 14. Insurance Plans and Retirement Benefits

14.1 Reopener Clause for Health Insurance

(a) The AssociationUnion agrees at the City’s request, to meet and confer on any changes that are within the mandat ory scope of bargaining in any City proposals related to its City sponsored medical plans that may be related to the implementation of the Affordable Care Act (ACA).

(b) The City agrees at the request of the Water Supervisory Unit to meet and confer regarding employer benefits and premium contributions should medical/dental/vision insurance premiums for employ ee-only, employee plus one (1) dependent or employee plus family increase by more than four percent (4%) in any one (1) plan year.

14.2 Health and Welfare B enefits and Trust Fund Plan

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(a) Choice of Health Plans. Employees in this bargaining unit shall have a choice of enrolling themselves and t heir eligible dependents in any of the City sponsored medical, dental and vision s plans or Operating Engineer Health and Welfare Trust Fund Plan (PPO Anthem Plans A, B, C, and D, and Kaiser HMO Plans A and B, and A+ ). The City shall offer two (2) or more medical plans to regular status employees.

(b) (b) Eligibility. Employees shall become eligible for Medical, Dental and Vision insurance on the first day of t he month following date of hire. An eligible employee and eligible dependent may be enrolled in a City offered medical plan either as a subscriber in a City offered medical plan or, as the dependent spouse/registered domestic par tner or another eligible City employee, but not both. If an employee is also eligible to cover their dependent child, the child will be allowed to enroll as a dependent on only one (1) employee plan (i.e., an employee and his or her dependent cannot be covered by more than one City-offered health plan).

(b)(c) City Contribution towards the cost of insurance programs.

1) Effective January 1, 2020, the City will contribute: Effective the first full pay period following ratification of this MOU by the Union and approval by City Council on its regular agenda, the City will contribute:

 Up to $711.00$657.00 per month toward the cost of the monthly premium for employee-only medical/dental/vision plan coverage.

 Up to $1,290.00$1,192.00 per month toward the cost of the monthly premium for employee plus one (1) dependent medical/dental/vision plan coverage.

 Up to $1,719.00$1,588.00 per month toward the cost of the monthly premium for employee plus two (2) or more dependents
medical/dental/vision plan coverage.

Any retroactive portion of these in creases shall be processed and paid as soon as administratively possible following adoption of this agreement by the City Council.

2) Effective July 1, 20242020, City shall contribute the following:
 Up to $725.00$670.00 per month toward the cost of the monthly premium for employee-only medical/dental/vision plan coverage.

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 Up to $1,316.00$1,216.00 per month toward the cost of the monthly premium for employee plus one (1) dependent medical/dental/vision plan coverage.
 Up to $1,753.00$1,620.00 per month toward the cost of the monthly premium for employee plus two (2) or more dependents
medical/dental/vision plan coverage.
3) Effective July 1, 20252021, City shall contribute the following:
 Up to $740.00$683.00 per month toward the cost of the monthly premium for employee-only medical/dental/vision plan coverage.  Up to $1,342.00$1,240.00 per month toward the cost of the monthly premium for employee plus one (1) dependent medical/dental/vision plan coverage.
 Up to $1,788.00$1,652.00 per month toward the cost of the monthly premium for employee plus two (2) or more dependents
medical/dental/vision plan coverage.
4) Effective July 1, 2022, City shall contribute the following:

 Up to $697.00 per month toward th e cost of the monthly premium for employee-only medical/dental/vision plan coverage.

 Up to $1,265.00 per month toward the cost of the monthly premium for employee plus one dependent medical/dental/vision plan coverage

 Up to $1,685.00 per month toward the cost of the monthly premium for employee plus two or more dependents medical/dental/vision plan coverage.

These contributions are based on full- time employment; regular part-time employees shall receive a prorated contribution based on their percentage of full-time employment. Insurance pl an premiums that exceed the City’s monthly contribution shall be paid by the employee through payroll deductions. The City shall maintain its IRS 125 Plan to allow for employee contributions for medical/visions/dental to be pre-tax premium conversion.

(c)(d) Plan Rules. Employees may insure themselves and their eligible

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dependents under the medical, vision and dental plans provided by the City, in accordance with the rules and regulations applicable to the selected Plan.

Benefits in the Plan shall be in accordance with the Plan document.

(d)(e) Employees that promote, demote, or transfer from a classification in the Water Supervisors unit to an unrepresented classification shall continue to have the option to retain the Operati ng Engineers' Local No. 3 Health and Welfare Plan.

(f) Payment of costs fo r City administrative overhe ad related to Operating Engineer sponsored plans.

The City costs to administer the heal th plans offered to employees and retirees are incorporated into the monthly rates for City sponsored medical, dental and vision insurance paid by the City and the plan participants.

Effective upon the first full pay period following ratification of this Memorandum of UnderstandingMOU by the Union and approval by the City Council on its regular agenda in accordance with the Brown Act the City will add to the monthly plan costs for the Operating Engineer sponsored plans offered to employees those City admin istrative overhead costs associated with these plans in addition to the City sponsored plans. Only costs associated with the OE3 plans will be charged to those plans and will be updated each plan year.

14.3 Long Term Disability Insurance

The City shall provide, at no cost to t he employee, long term disability insurance coverage. Plan benefits shall be as descri bed in the Plan document, but shall include:

(a) Each disability - sixty-six and two thir ds percent (66 2/3%) of salary up to the maximum salary replacement amount as specified in the City’s long term disability plan.

(b) Disability income payments shal l commence after a ninety (90) day waiting period and exhaustion of sick leave accruals.

(d) The City shall continue its norma l contribution for employee medical premiums during the ninety (90) day waiting period.

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14.4 Life Insurance

Effective July 1, 2012, Tthe City shall provide, at no cost to the employee, a term life and accidental death and dismemberment insurance policy, with a value of fifty thousand dollars ($50,000). In addition, employees sha ll have the opportunity to purchase additional voluntary life insu rance through their union or through the City’s IRS125 vendor.

14.5 State Disability Insurance (SDI)

At the Union’s option, pursuant to procedures established by the state, members may elect to receive State Disability Insurance (SDI) coverage at their own expense. SDI will be coordinated with other benefits.

14.6 Health Reimbursement Account (HRA)
The City will contribute an amount equal to five and one half percent (5.1/25%) of the employee’s current base salary into an IRS qualified HRA for each employee to use for reimbursement of current and retiree medical cost reimbursement.

Section 15. Salaries

15.1 Salary Rates
(a) Effective January 1, 2020,the first full pay peri od following ratification of this MOU by the Water Supervisory Unit and approved by the City Council on its regular agenda, employees will receive a twofour percent (42%) cost of living adjustment (COLA) to base pay. Any retroactive portion of this increase will be processed and paid as soon as administratively possible following adoption of this agreement by the City Council.

(b) Effective July 1, 20240, employees will receive a three percent (32%) COLA to base pay.

(d) Effective July 1, 2022, employees will receive a 2% COLA to base pay.Market adjustments will be provided in year two (2 ) and year three (3) of the contract as follows:

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a. First, the total three (3) year CO LA shall be deducted from the “median” position in the market.

b. Effective July 1, 2024, classifications will receive a market adjustment of no more than seven percent (7%) as outlined in Appendix A.

c. Effective July 1, 2025, classificati ons will receive the remaining percentage to bring the classification to the m edian of the market as outlined in Appendix A.

d. The 2022 Total Compensation survey prepared by Bryce Consulting made specific recommendations for internal relationships between classifications in the Water Supervisory Unit and employees in the same job family. In the event these internal relationships c hange, the Parties will consider how to address compaction between those classifications.

(e) Lump Sum Payments

1. Each employee who is employed in the ba rgaining unit as of July 1, 2024 will receive a two thousand ($2,000) lump sum non-pensionable bonus (subject to all applicable withholdings) to be paid by the second scheduled payday in the same month.

2. Each employee who is employed by t he bargaining unit as of July 1, 2025 will receive a two thousand ($2,000) lump sum non-pensionable bonus (subject to all applicable withholdings) to be paid by the second scheduled payday in the same month.
a. The classifications listed in Appendix A will receive market salary adjustments throughout the term of this contract, according to the updated salary schedules listed in Appendix A.

The rates of pay set forth in Appendix "A" do not include reimbursement for actual and necessary expenses for traveling, subsistence and general expenses authorized and incurred incident to City employment.

15.2 Salary upon Appointment

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WATER SUPERVISORY UNIT SUCCESSOR MOU
Term: July 1, 20192023 – June 30, 20232026

CITY OF STOCKTON 41

Except as herein otherwise provided, the entrance salary for a new employee entering the classified service shall be t he minimum salary for the class to which appointed. When circumstances warrant, the Director of Human Resources may approve an entrance salary which is more than the minimum salary for the class to which an employee is appointed. Such a salary may not be more than the maximum salary for the class to which that employee is appointed.

15.3 Salary Equivalents

Any monthly, daily or hourly rate of pay may be converted into an equivalent rate of pay or to any other time bases when, in the judgment of the City Manager, such a conversion is advisable. In determini ng equivalent amounts on different time bases the City shall provide tables or regulations for the calculation of payment for service of less than full time, and for use in converting monthly salaries to hourly rates, as well as for calculating hourly rates. Overtime rate and premium pay shall be calculated according to the provisions of the Fair Labor Standards ActFLSA.

15.4 Salary Step Plan

There shall be six (6) salary steps in each range.

The first step shall be the minimum rate and shall be the normal hiring rate for the class. (In a case where a person possesses unusual qualifications, the Director of Human Resources may authorize appointment above the first step after receiving the recommendation of the depar tment head. The same provision shall apply to hourly paid and part-time employees.)

If a department head recommends to withholdwithholding increases to salary steps two (2) through six (6) because an employee has not achieved the level of performance required, notic e must be received by the Human Resources Department at least four (4) weeks in advan ce of the employee's eligibility date.

The affected employee shall be furnis hed a copy of the department head's recommendation. Failure to abide by t he above four-week limitation shall not automatically cause a step increase to be granted; however, if an employee does not receive notice by the actual anni versary date, the increase shall be automatically granted.

The second step shall be paid upon the satisf actory completion of six (6) months service at the first step.

The third step shall be paid upon the satisfactory completion of one (1) year service at the second step.

ATTACHMENT A

WATER SUPERVISORY UNIT SUCCESSOR MOU
Term: July 1, 20192023 – June 30, 20232026

CITY OF STOCKTON 42

The fourth step shall be paid upon the sa tisfactory completion of one (1) year service at the third.

The fifth step shall be paid upon the satisfactory completion of one (1) year service at the fourth step and upon written recommendation of the departmentdepartment.

The sixth step shall be paid upon the satisfactory completion of one (1) year service at the fifth step and upon written recommendation of the department head.

Regardless of an employee's length of service, step advancements in any given class may be made upon recommendation of the department head with the approval of the Director of Human Resources, but not above Step No. 6 for a given range.

Salary step increases shall be effective the first day of the pay period following appointment or revision. If the date of appointment or revision is the first day of a pay period, salary step increases shall be as of that date.

Changes in an employee's salary because of promotion, demotion, postponement of salary step increase or special merit increase will set a new salary anniversary date for that employee, which date shall be as stated in the preceding paragraph.

Salary range adjustments for a classification will not set a new salary anniversary date for employees serving in that classification.

15.5 Salary Step after Military Leave

All employees who have been granted military leave shall, upon their return to the City service, be entitled to the automatic salary advancements within the range of their classification for the period they were in the military service.

15.6 Salary Step When Salary Range is Increased

Whenever the monthly schedule of compensation for a class is revised, each incumbent in a position to which the re vised schedule applies shall be entitled to the step in the revised range which corresponds to the employee's step held in the previous range, unless otherwise specifically provided for by the Director of Human Resources.

15.7 Salary Step After Promotion or Demotion

ATTACHMENT A

WATER SUPERVISORY UNIT SUCCESSOR MOU
Term: July 1, 20192023 – June 30, 20232026

CITY OF STOCKTON 43

(a) When an employee is prom oted from a position in one class to a position in a higher class, and at the time of prom otion is receiving base salary equal to, or greater than, the minimum rate for the higher class, that employee shall be entitled to the next step in the base salary of the higher class which is at least a minimum of five percent (5.0%) above the employee's current base salary, except that the next step shall not exceed the maximum salary of the higher class. Add pays are not included in the calc ulation of base salary for purposes of this section. When an employee is promoted into another bargaining unit, the new bargaining unit’s salary on promotion rules shall apply.

(b) When an employee is dem oted, whether such demotion is voluntary or otherwise, that employee's compensation shall be adjusted to the salary prescribed for the class to which demoted.

(1) If the salary of the employee is reduced for cause or disciplinary reasons, the employee shall receive the salary at the same step prior to promotion.

(2) If the salary of the employee is reduced through no fault of the employee (i.e., layoff), the sala ry at demotion shall be at the nearest lower salary to that which was received prior to the demotion.

15.8 Transfer

An employee may be transferred from a cl ass in one department, or to a position of the same class in anot her department, or to a co mparable class, with the approval of both the employee and Department Heads. In the case of a compa- rable class, the employee must be qualif ied, as determined by the Director of Human Resources. The Director of Human Resources, in making such a determination, must assure that the maximum salary rate for the classes in question must be equal to or less than the employee’s current top step salary, and shall consider, among other things, whether the employee possesses the minimum qualifications for such class, and is able to demonstrate through education, experience, or successful comple tion of pertinent tests, that he/shethey isare qualified for the transfer. If the transfer involves a change from the jurisdiction of one appointing authority to another, both must consent thereto.

15.9 Salary on Reinstatement

ATTACHMENT A

WATER SUPERVISORY UNIT SUCCESSOR MOU
Term: July 1, 20192023 – June 30, 20232026

CITY OF STOCKTON 44

If a former employee is reinstated in the same position previously held or to one carrying a similar salary range, the employee's salary shall not be higher than the salary at the time of separation unless there has been an increase within the salary range.

If a former employee is reinstated to a pos ition in a lower class, the employee's salary shall be set at the same step previously held, but in the pay range of the lower classification.

15.10 "Y" Rate

When an employee's classification is changed to a lower paid classification as the result of a classification study or other action, t he employee may be placed on a "Y" rate. A "Y" rate means that the m onthly compensation for the employee shall remain in effect until such time as further changes in the pay range of the new classification exceeds the "Y" rate.

15.11 Acting Pay

Any employee in this unit who is assigned by a supervisor to work in a higher paid classification for two (2) or more hours in one (1) day, shall receive the rate of pay in the step of the higher classificati on which would have been received if the employee had been promoted into that classification, or at least five percent (5%) more than the employee's salary in the present classification, whichever is greater.

Out-of-class assignment pay during overtime status will commence at the first hour worked.

15.12 Special Assignment Pay

The department head with the concurrence of the Director of Human Resources may approve additional compensation in an amount not to exceed one (1) additional salary step when an employee is assigned in writing by the supervisor to perform additional duties and responsibilit ies for the duration of the special assignment.

15.13 Temporary Upgrade Pay
Employees who are assigned to temporarily perform the duties of other employees of a higher level classification shall be paid the hourly or daily rate of the classification to which they are temporarily upgraded. To be eligible for temporary upgrade pay, the employee must perform the full scope of duties of the higher classification and must not perform any of the duties of their own job classification while working in the higher level classification.

ATTACHMENT A

WATER SUPERVISORY UNIT SUCCESSOR MOU
Term: July 1, 20192023 – June 30, 20232026

CITY OF STOCKTON 45

15.14 Special Cert ification Pay

In exchange of eliminating the Special Certification Pay, the 3% will be converted into the base salary for the Water Systems Superintendent and the Water Systems Supervisor, effective upon the first pay period following approval of the MOU by City Council on its regular agenda in accordance with the Ralph M.

Brown Act.

15.145 Salary Adjustments

The City recognizes that there may be a need for special salary adjustments for selected classifications as a result of recruitment problems, reclassifications, and/or organizational changes. The City, in its sole discretion, may make such adjustments, but agrees to discuss with the Supervisory Unit Union.

15.156 Bi-Weekly Pay Period
The City and the AssociationUnion agree to move to bi-weekly pay as soon as it is administratively possible within the City. The parties under stand that this may not be administratively possible until the City implements a new payroll system.

15.167 One Time Payment
The City will make a one-time (non-pensionable) payment in the amount of five- four hundred and fifty dollars ($ 4500.00), subject to applic able withholdings, to Water Supervisory Uunit members employed by the city upon adoption of this agreement by City Council. Payment will be processed and paid as soon as administratively possible following adoption of this agreement by the City Council.

ATTACHMENT A

WATER SUPERVISORY UNIT SUCCESSOR MOU
Term: July 1, 20192023 – June 30, 20232026

CITY OF STOCKTON 46

Section 16. Severability of Provisions
In the event that any provision of this Memorandum of UnderstandingMOU is declared by a court of competent jurisdiction to be ill egal or unenforceable t hat provision of the Memorandum of UnderstandingMOU shall be null and void but such nullification shall not affect any other provisions of this Memorandum of UnderstandingMOU, all of which other provisions shall remain in full force and effect.

In the event that Federal legislation changes the current applicability of the Fair Labor Standards ActFLSA, both parties agree to consult and/or confer on the impacts of such legislation to the extent required by law.

Section 17. Past Practices and Existing Memoranda of Understanding Continuance of working conditions and practices not specifically authorized by ordinance or by resolution of the City Council is not guaranteed by this Memorandum of Understand- ingMOU.

This Memorandum of UnderstandingMOU shall supersede all existing Memoranda of Understanding between the City and the Union.

Section 18. Scope of Agreement
Except as otherwise specifically provided herein, this Memorandum of UnderstandingMOU including Appendices “A” and “B”, which are attached to this Agreement and by this refer ence incorporated herein, and fully and completely incorpo- rates the understanding of the parties hereto and constitutes the sole and entire agreement between the parties on any and all matters subject to meeting and conferring.

Neither party shall, during the term of this Memorandum of UnderstandingMOU, demand any change therein nor shall either party be required to negotiate with respect to any matter; provided that nothing herein shall prohibit the parties from changing the terms of this Memorandum of UnderstandingMOU by mutual agreement.

Section 19. Duration of Agreement
This Memorandum of UnderstandingMOU shall be effective the date of execution, through June 30, 20232026.

ATTACHMENT A

WATER SUPERVISORY UNIT SUCCESSOR MOU
Term: July 1, 20192023 – June 30, 20232026

CITY OF STOCKTON 47

Section 20. Maintenance of Operations/City Rights
(a) It is recognized that the need for c ontinued and uninterrupted operation of City services is of paramount im portance. Therefore, the Union and each em ployee repre- sented thereby agrees that from the date of execution, through exhaustion of the impasse process/mediation/fact finding as set fo rth in the Employer/Employee Relations Resolution, the Union or any person ac ting in its behalf, or each employee in a classification represented by the Union, shall not cause, authorize, engage in, encourage, or sanction a work stoppage, slowdown, refusal of overtime work, refusal to operate designated equipment (provided such equipment is safe and sound), or picketing, other than informational picketing, against the City or the individual or concerted failure to report for duty or abstinence from the full and faithful performance of the duties of employment, including compliance with the request of another labor organization or bargaining unit to engage in such activity in an attempt to induce a change in wages, hours, and other terms and conditions of employment.

(b) An employee shall not be entitled to any wages or City paid benefits whatsoever if the City Council, by majority vote, determines to its satisfaction, that the employee is, or has, engaged in any activity prohibited by subsection (a) of this sSection. The City may take other action which it deems appropriate.

(c) If the City Council, by majority vote, dete rmines to its satisfaction, that subsection (a) of this sSection has been violated by the Union, the City may take such remedial action as it deems appropriate.

(d) The Union recognizes the duty and obligat ion of its representatives and members to comply with the provisions of this Memorandum of UnderstandingMOU and to make every effort toward inducing all employees in this unit to fully and fa ithfully perform their duties. In the event of any activity prohi bited by subsection (a) hereinabove, the Union agrees to take supererogatory steps nece ssary to assure compliance with this Memorandum of UnderstandingMOU.

The rights of the City as set forth in Section 5 of Resolution No. 32,538, dated August 4, 1975, are incorporated herein by reference.

Section 21. GPS Devices in City Vehicles
The City retains the right to move forwar d with its RFP process and install Global Positioning Systems (GPS) in City vehicles used by employees in this unit. The Association agrees to meet and confer with respect to the City’s proposed GPS policy.

ATTACHMENT A

WATER SUPERVISORY UNIT SUCCESSOR MOU
Term: July 1, 20192023 – June 30, 20232026

CITY OF STOCKTON 48

IN WITNESS WHEREOF this Memorandum of Understanding was ratified by a membership vote of the Association on ____________ ________, and by an affirmative vote of the Stockton City Council on _________ __________________ .

The parties hereto have executed this Memorandum of Understanding this _________day of _____________.

WATER SUPERVISORY UNIT

Approved as to form:

CITY OF STOCKTON
Operating Engineers’ Local No. 3

By: _______________________

DARREN SEMORE
Business Representative

APPROVED AS TO FORM:

By: _______________________

HARRY BLACK
City Manager

By: _______________________

ROBERT BONNERROSEMARY RIVAS
Director of Human Resources

By: ________________________

BURKE DUNPHYCHARLES SAKAI
Negotiator for the City

Approved as to form:

John LuebberkeLori Asuncion, City Attorney

By: _______________________

MARCI ARREDONDO
Deputy Assistant City Attorney

ATTEST:

CITY CLERK

____________________

ELIZA GARZA

ATTACHMENT A

WATER SUPERVISORY UNIT SUCCESSOR MOU
Term: July 1, 20192023 – June 30, 20232026

CITY OF STOCKTON 49

City Clerk
Appendix A. Market Adjustments
For up-to-date Salary Schedule, please check the Human Resources Website.

Year 1‐ eff. 1/1/20 (note that any retroactive portion of this increase shall be processed and paid as soon as administratively possible following adoption of this agreement by the City Council); Year 2‐ eff. 7/1/20; Year 3‐ eff. 7/1/21; Year 4‐ eff. 7/1/22

Steps

1 2 3 4 5 6
Occupational Health and Safety
Compliance Specialist

4,291.28

4,510.77

4,742.14

4,985.41

5,240.58

5,508.71
COLA year 1 (2%)

85.83 90.22

94.84 99.71

104.81

110.17
MA year 1 (8%)

343.30

360.86

379.37

398.83

419.25

440.70
Year 1 ‐ With COLA and Market
Adjustment

4,720.41

4,961.85

5,216.35

5,483.95

5,764.64

6,059.58
COLA year 2 (2%)

94.41 99.24

104.33

109.68

115.29

121.19
MA year 2 (8%)

343.30

360.86

379.37

398.83

419.25

440.70
Year 2 ‐ With COLA and Market
Adjustment

5,158.12

5,421.95

5,700.05

5,992.46

6,299.18

6,621.47
COLA year 3 (2%)

103.16

108.44

114.00

119.85

125.98

132.43
MA year 3 (1.12%)

48.06 50.52

53.11 55.84

58.69 61.70
Year 3 ‐ With COLA and Market
Adjustment

5,309.34

5,580.91

5,867.17

6,168.15

6,483.86

6,815.60
COLA year 4 (2%)

106.19

111.62

117.34

123.36

129.68

136.31
MA year 4 (0%) ‐ ‐ ‐ ‐ ‐ ‐ Year 4 ‐ With COLA

5,415.53

5,692.52

5,984.51

6,291.51

6,613.53

6,951.91

Plant Maintenance Supervisor

5,719.90

6,011.97

6,320.83

6,643.92

6,985.10

7,343.08
COLA year 1 (2%)

114.40

120.24

126.42

132.88

139.70

146.86
MA year 1 (5%)

286.00

300.60

316.04

332.20

349.26

367.15
Year 1 ‐ With COLA and Market
Adjustment

6,120.29

6,432.81

6,763.29

7,108.99

7,474.06

7,857.10
COLA year 2 (2%)

122.41

128.66

135.27

142.18

149.48

157.14
MA year 2 (0%) ‐ ‐ ‐ ‐ ‐ ‐

ATTACHMENT A

WATER SUPERVISORY UNIT SUCCESSOR MOU
Term: July 1, 20192023 – June 30, 20232026

CITY OF STOCKTON 50

Year 2 ‐ With COLA

6,242.70

6,561.46

6,898.55

7,251.17

7,623.54

8,014.24
COLA year 3 (2%)

124.85

131.23

137.97

145.02

152.47

160.28
MA year 3 (0%) ‐ ‐ ‐ ‐ ‐ ‐ Year 3 ‐ With COLA

6,367.55

6,692.69

7,036.52

7,396.20

7,776.01

8,174.52
COLA year 4 (2%)

127.35

133.85

140.73

147.92

155.52

163.49
MA year 4 (0%) ‐ ‐ ‐ ‐ ‐ ‐ Year 4 ‐ With COLA

6,494.90

6,826.55

7,177.26

7,544.12

7,931.53

8,338.01

Plant Operations Supervisor

6,087.87

6,408.10

6,744.75

7,100.17

7,474.36

7,867.31
COLA year 1 (2%)

121.76

128.16

134.90

142.00

149.49

157.35
MA year 1 (8%)

487.03

512.65

539.58

568.01

597.95

629.38
Year 1 ‐ With COLA and Market
Adjustment

6,696.66

7,048.91

7,419.23

7,810.19

8,221.80

8,654.04
COLA year 2 (2%)

133.93

140.98

148.38

156.20

164.44

173.08
MA year 2 (4.82%)

293.44

308.87

325.10

342.23

360.26

379.20
Year 2 ‐ With COLA and Market
Adjustment

7,124.03

7,498.76

7,892.71

8,308.62

8,746.50

9,206.33
COLA year 3 (2%)

142.48

149.98

157.85

166.17

174.93

184.13
MA year 3 (0%) ‐ ‐ ‐ ‐ ‐ ‐ Year 3 ‐ With COLA

7,266.51

7,648.73

8,050.56

8,474.79

8,921.43

9,390.45
COLA year 4 (2%)

145.33

152.97

161.01

169.50

178.43

187.81
MA year 4 (0%) ‐ ‐ ‐ ‐ ‐ ‐ Year 4 ‐ With COLA

7,411.84

7,801.71

8,211.57

8,644.29

9,099.85

9,578.26

Senior Collection Systems Supervisor

6,041.46

6,350.27

6,676.36

7,018.52

7,377.97

7,755.95
COLA year 1 (2%)

120.83

127.01

133.53

140.37

147.56

155.12
MA year 1 (5.16%)

311.74

327.67

344.50

362.16

380.70

400.21
Year 1 ‐ With COLA and Market
Adjustment

6,474.03

6,804.95

7,154.39

7,521.05

7,906.23

8,311.28
COLA year 2 (2%)

129.48

136.10

143.09

150.42

158.12

166.23
MA year 2 (0%) ‐ ‐ ‐ ‐ ‐ ‐ Year 2 ‐ With COLA

6,603.51

6,941.05

7,297.48

7,671.47

8,064.36

8,477.50

ATTACHMENT A

WATER SUPERVISORY UNIT SUCCESSOR MOU
Term: July 1, 20192023 – June 30, 20232026

CITY OF STOCKTON 51

COLA year 3 (2%)

132.07

138.82

145.95

153.43

161.29

169.55
MA year 3 (0%) ‐ ‐ ‐ ‐ ‐ ‐ Year 3 ‐ With COLA

6,735.58

7,079.87

7,443.42

7,824.90

8,225.64

8,647.05
COLA year 4 (2%)

134.71

141.60

148.87

156.50

164.51

172.94
MA year 4 (0%) ‐ ‐ ‐ ‐ ‐ ‐ Year 4 ‐ With COLA

6,870.29

7,221.47

7,592.29

7,981.39

8,390.16

8,819.99

Senior Plant Maintenance Supervisor

6,041.46

6,350.27

6,676.36

7,018.52

7,377.97

7,755.95
COLA year 1 (2%)

120.83

127.01

133.53

140.37

147.56

155.12
MA year 1 (8%)

483.32

508.02

534.11

561.48

590.24

620.48
Year 1 ‐ With COLA and Market
Adjustment

6,645.61

6,985.30

7,344.00

7,720.37

8,115.77

8,531.55
COLA year 2 (2%)

132.91

139.71

146.88

154.41

162.32

170.63
MA year 2 (6.96%)

420.49

441.98

464.67

488.49

513.51

539.81
Year 2 ‐ With COLA and Market
Adjustment

7,199.00

7,566.98

7,955.55

8,363.27

8,791.59

9,241.99
COLA year 3 (2%)

143.98

151.34

159.11

167.27

175.83

184.84
MA year 3 (0%) ‐ ‐ ‐ ‐ ‐ ‐ Year 3 ‐ With COLA

7,342.98

7,718.32

8,114.66

8,530.53

8,967.42

9,426.83
COLA year 4 (2%)

146.86

154.37

162.29

170.61

179.35

188.54
MA year 4 (0%) ‐ ‐ ‐ ‐ ‐ ‐ Year 4 ‐ With COLA

7,489.84

7,872.69

8,276.95

8,701.14

9,146.77

9,615.37

Senior Plant Operations Supervisor

6,041.46

6,350.27

6,676.36

7,018.52

7,377.97

7,755.95
COLA year 1 (2%)

120.83

127.01

133.53

140.37

147.56

155.12
MA year 1 (8%)

483.32

508.02

534.11

561.48

590.24

620.48
Year 1 ‐ With COLA and Market
Adjustment

6,645.61

6,985.30

7,344.00

7,720.37

8,115.77

8,531.55
COLA year 2 (2%)

132.91

139.71

146.88

154.41

162.32

170.63
MA year 2 (8%)

483.32

508.02

534.11

561.48

590.24

620.48
Year 2 ‐ With COLA and Market
Adjustment

7,261.83

7,633.02

8,024.98

8,436.26

8,868.32

9,322.65

ATTACHMENT A

WATER SUPERVISORY UNIT SUCCESSOR MOU
Term: July 1, 20192023 – June 30, 20232026

CITY OF STOCKTON 52

COLA year 3 (2%)

145.24

152.66

160.50

168.73

177.37

186.45
MA year 3 (4.03%)

243.47

255.92

269.06

282.85

297.33

312.56
Year 3 ‐ With COLA and Market
Adjustment

7,650.54

8,041.60

8,454.54

8,887.83

9,343.02

9,821.67
COLA year 4 (2%)

153.01

160.83

169.09

177.76

186.86

196.43
MA year 4 (0%) ‐ ‐ ‐ ‐ ‐ ‐ Year 4 ‐ With COLA

7,803.55

8,202.43

8,623.63

9,065.59

9,529.88

10,018.10

Technical Services Supervisor

5,826.59

6,125.00

6,438.55

6,768.31

7,115.38

7,479.74
COLA year 1 (2%)

116.53

122.50

128.77

135.37

142.31

149.59
MA year 1 (0.11%)

6.41 6.74

7.08 7.45

7.83 8.23
Year 1 ‐ With COLA and Market
Adjustment

5,949.53

6,254.24

6,574.40

6,911.12

7,265.51

7,637.56
COLA year 2 (2%)

118.99

125.08

131.49

138.22

145.31

152.75
MA year 2 (0%) ‐ ‐ ‐ ‐ ‐ ‐ Year 2 ‐ With COLA

6,068.52

6,379.32

6,705.89

7,049.34

7,410.82

7,790.31
COLA year 3 (2%)

121.37

127.59

134.12

140.99

148.22

155.81
MA year 3 (0%) ‐ ‐ ‐ ‐ ‐ ‐ Year 3 ‐ With COLA

6,189.89

6,506.91

6,840.01

7,190.33

7,559.04

7,946.12
COLA year 4 (2%)

123.80

130.14

136.80

143.81

151.18

158.92
MA year 4 (0%) ‐ ‐ ‐ ‐ ‐ ‐ Year 4 ‐ With COLA

6,313.69

6,637.05

6,976.81

7,334.14

7,710.22

8,105.04

Water Systems Superintendent

7,048.02

7,400.27

7,770.13

8,158.47

8,566.21

8,994.35
COLA year 1 (2%) + Conversion of Add Pay
(3%)

352.40

370.01

388.51

407.92

428.31

449.72
MA year 1 (0.39%)

27.49 28.86

30.30 31.82

33.41 35.08
Year 1 ‐ With COLA, Market
Adjustment + conversion of 3% add pay

7,427.91

7,799.14

8,188.94

8,598.21

9,027.93

9,479.15
COLA year 2 (2%)

148.56

155.98

163.78

171.96

180.56

189.58
MA year 2 (0%) ‐ ‐ ‐ ‐ ‐ ‐ Year 2 ‐ With COLA

7,576.47

7,955.13

8,352.72

8,770.18

9,208.49

9,668.73

ATTACHMENT A

WATER SUPERVISORY UNIT SUCCESSOR MOU
Term: July 1, 20192023 – June 30, 20232026

CITY OF STOCKTON 53

COLA year 3 (2%)

151.53

159.10

167.05

175.40

184.17

193.37
MA year 3 (0%) ‐ ‐ ‐ ‐ ‐ ‐ Year 3 ‐ With COLA

7,728.00

8,114.23

8,519.77

8,945.58

9,392.66

9,862.10
COLA year 4 (2%)

154.56

162.28

170.40

178.91

187.85

197.24
MA year 4 (0%) ‐ ‐ ‐ ‐ ‐ ‐ Year 4 ‐ With COLA

7,882.56

8,276.51

8,690.17

9,124.49

9,580.51

10,059.35
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ATTACHMENT A

WATER SUPERVISORY UNIT SUCCESSOR MOU
Term: July 1, 20192023 – June 30, 20232026

CITY OF STOCKTON 54

Appendix B. Side-Letter of Agreement Regarding Transfer of Services Pursuant to the Special Agreement between Operating Engineers’ Local Union No. 3 (“Union”) and the City of Stockton (“City”) dated June 18, 2003, author ized by Stockton City Council Resolution No. 03-0393, adopted on July 8, 2003, regarding the Transfer of Services, the provisions contained in Appendi x B, Side-Letter of Ag reement, pertains to only the Employees covered by the Special Agreement.

ATTACHMENT A

WATER SUPERVISORY UNIT SUCCESSOR MOU
Term: July 1, 20192023 – June 30, 20232026

CITY OF STOCKTON 55

Nothing contained herein prohi bits the parties from mutually agreeing to changes, but neither party can be compelled to negotiate and/or agree to any changes to this Appendix B, Side-Letter of Agreement.

Section 1 – Re-employment and Employment

The City shall provide regular full-time employment at the City’s municipal wastewater utility and water utility to all of the employees listed in Agreement electing to accept such employment effective March 1, 2008.

Section 2 – Terms and Conditions of Re-employment and Employment

(a) City’s offer of employment and re-emplo yment shall be unconditional, and shall not be subject to other health, competency or other test, fact, or circumstances relating to an individual employee.

(b) All service with OMI/Thames Water will be counted as service with the City.

(c) Waste Water Certification – Employees outside of the Waste Water Division who hold Waste Water II or higher certific ation and are available for short-term assignment to the waste water facility will receive an additional five percent (5%) of the top step, which sha ll be PERS reportable earnings. Certification must be kept current. Employees who decline s hort-term assignments to the waste water facility subject to department guidelines will lose this additional pay.

Section 3 - Deferred Compensation

The City shall provide, at no cost to the employee, deferred compensation as a supplement to voluntary deferred compensati on plans, if any, for which the individual employee may be eligible. The City shall contribute an amount equal to five and one-half percent (5.5%) of the employee’s current base salary.

Pe
ggy Barnett Occupational Health/Safet y Compliance Specialist Jim Butler Senior Plant Maintenance Supervisor
Randy Cornell Collection S ystems Supervisor
Larry Huber Laborator y Supervisor

Section 4 - Public Agency Retirement Syst em (“PARS”) Supplemental Retirement Plan

The City shall contribute an amount necessary to fund a supplemental retirement benefit for the following employees in Municipal Utilities Department.

ATTACHMENT A

WATER SUPERVISORY UNIT SUCCESSOR MOU
Term: July 1, 20192023 – June 30, 20232026

CITY OF STOCKTON 56

Peggy Barnett Occupational Health/Safet y Compliance Specialist Jim Butler Senior Plant Maintenance Supervisor
Randy Cornell Collection S ystems Supervisor
Larry Huber Laborator y Supervisor
Robert Englent Senior Collection S ystems Operator

The supplemental retirement benefit shall be developed and administered by the Public Agency Retirement Services (“PARS”) benefit and shall be based on the following criteria:

(a) Only employees listed in this Agr eement shall be eligible to participate;

(b) Commencing March 1, 2008, employees mu st complete at least one (1) year of continuous City of Stockton service to be eligible for the PARS benefit;

(c) The PARS benefit shall be paid only to t hose employees listed in this Agreement who retire from the City in accordance with rules and criteria established pursuant to PERS and the MOU in effect between the City and the OE3; and

(d) The benefit level paid to each eligible employee shall be based on the following formula:

(1) All actual years of service (prior City of Stockton, OMI and City of Stockton years of service as of March 1, 2008 prospectively) x 0.6%.

Section 5 – Compensation and Benefits

(a) Active employees shall receive fully paid City Health Plan (Medical, Vision, and Dental) or the option of the fully paid OE3 Medical Plan Schedule A (Medical, Vision, and Dental) through June 30, 2013. Effective June 30, 2013, employees identified in Exhibit B shall receive the same city contribution towards cost of insurance programs as stated in MOU section 14.1(c).

(b) An employee who receives and maintain s a Level IV or V Wa ste Water Operator Certification will receive the following quarterly amounts added to his or her monthly paychecks for Level V and Level IV certifications, unless certification is required of the position.

Level IV $1,000.00
Level V $2,000.00

ATTACHMENT A

WATER SUPERVISORY UNIT SUCCESSOR MOU
Term: July 1, 20192023 – June 30, 20232026
CIT
Y OF STOCKTON 57
Appendix B – Exhibit B Employees

ATTACHMENT A

WATER SUPERVISORY UNIT SUCCESSOR MOU
Term: July 1, 20192023 – June 30, 20232026
CIT
Y OF STOCKTON 58
Appendix B – Exhibit B Employees

ATTACHMENT A

Resolution No.

STOCKTON CITY COUNCIL

RESOLUTION APPROVING THE MEMORANDA OF UNDERSTANDING BETWEEN THE CITY OF STOCKTON AND THE OPERATING ENGINEERS’ LOCAL 3 (OE3) TO

INCLUDE THE WATER SUPERVISORY UNIT

The H uman Resources Department along with the negotiating team, met and conferred with officials of the Water Supervisory Units and reached a tentative agreement for a successor Memorand um of Understanding, and reduced the agreement to writing .

The Water Supervisory employee unit ratified the agreement on August 16, 2023 by a majority vote of their members; and

The City of Stockton, and the Water Supervisory Unit have in good faith completed their meet and confer obligation regarding their successor Memorandum of Understanding; now, therefore,

BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF STOCKTON, AS FOLLOWS:

1. The Memorandum of Understanding between the City of Stockton and the Water Supervisory Unit is attached hereto as Exhibit 1 , and incorporated by this reference.

2. The City Manager is hereby authorized and directed to execute the Memorandum of Understanding to be effective July 1, 2023.

3. The City Manager is hereby authorized and directed to increase expenditure appropriations in the annual budget for Fiscal Year 2023-2024, as necessary to carry out the intent of the Water Supervisory Unit agreement as shown in Exhibit 2.

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4. The City Manager and the Employee Relations Officer are authorized to take whatever actions are appropriate and necessary to carry out the purpose and intent of this Resolution.

PASSED, APPROVED, and ADOPTED September 12, 2023 .

KEVIN J. LINCOLN II
Mayor of the City of Stockton
ATTEST:

ELIZA R. GARZA, CMC
City Clerk of the City of Stockton

CITY OF STOCKTON

MEMORANDUM OF UNDERSTANDING

WATER SUPERVISORY UNIT

MUNICIPAL UTILITIES DEPARTMENT
Operating Engineers' Local 3, AFL-CIO and representatives of the City of Stockton have met and conferred in good faith regarding wages, hours and other terms and conditions of employment of employees in the representation unit identified in s ection 1, have exchanged freely information, opinions and proposals , and have endeavored to reach agreement on all matters relating to the employment conditions and employer-employee relations of such employees.

Thi
s Memorandum of Understanding (MOU) is entered into pursuant to the Meyers- Milias-Brown Act (Government Code sections 3500-3510) and has been jointly prepared by the parties.

This MOU shall be presented to the Stockton City Council as the joint recommendations of the undersigned for salary and benefit adjustments for the period commencing July 1, 2023 and ending June 30, 2026.

EXHIBIT 1

TABLE OF CONTENTS

Section 1. Recognition ................................................................................................... 2 Section 2. Union Rights .................................................................................................. 2 Section 3. Compliance with Federal Laws/Safety ............................................................ 5 Section 4. Probation ....................................................................................................... 6 Section 5. Layoff ............................................................................................................. 7 Section 6. Reemployment ............................................................................................... 9 Section 7. Discipline ...................................................................................................... 10 Section 8. Grievance Procedures ................................................................................. 11 Section 9. Leaves ......................................................................................................... 14 Section 10. Days and Hours of Work ........................................................................... 23 Section 11. Overtime .................................................................................................... 24 Section 12. Holidays ..................................................................................................... 27 Section 13. Compensation and Allowance Other Than Base Salary.............................. 29 Section 14. Insurance Plans and Retirement Benefits ................................................. 34 Section 15. Salaries ..................................................................................................... 38 Section 16. Severability of Provisions ........................................................................... 44 Section 17. Past Practices and Existing Memoranda of Understanding ......................... 44 Section 18. Scope of Agreement ................................................................................... 44 Section 19. Duration of Agreement .............................................................................. 44 Section 20. Maintenance of Operations/City Rights ....................................................... 44 Section 21. GPS Devices in City Vehicles .................................................................... 45 Appendix A. Market Adjustments ................................................................................. 47 Appendix B. Side-Letter of Agreement Regarding Transfer of Services....................... 48

EXHIBIT 1

Section 1. Recognition
Operating Engineers' Local 3, AFL- CIO, hereinafter referred to as the "Union," is the recognized employee organization for the Water Supervisory Unit, certified pursuant to Resolution No. 08-0143, adopted by the City Council on April 15, 2008.

Section 2. Union Rights

2.1 Union Membership Dues and Payroll Deductions

(a) In accordance with the Senate Bill (SB) 866, t he parties agree to the following process for making, cancelling, or changing payroll deductions for Union membership union dues deductions.

(b) As certified in writing by the Union to the City in a manner consistent with the requirement of (SB) 866 the City will deduct the monthly Union membership dues, initiation fees, general assessments, and payments for membership benefits programs sponsored by the Union from the salary or wages of all bargaining unit employees who voluntarily authorize such deductions, as certified in writing by the Union to the City, and pay such amounts to the Union.

1. All employee requests to cancel or change membership dues deductions shall be directed to the Union.

2. The City shall rely upon written notification from the Union for any and all employee requests to cancel or change payroll deductions for membership dues.

3. The Union is responsible to obtain and maintain voluntary written authorization for membership dues deductions.

4. Membership dues deductions shall automatically renew unless written notice is provided by the authorized representative of the Union certifying a change in membership dues.

5. The City shall honor any changes to membership dues deduction amounts provided by the Union.

6. The Union is not required to provide a copy of individual employee authorizations to the City unless a dispute arises about the existence or terms of the authorization.

EXHIBIT 1

7. D
eduction notification will be provided to [email protected]

8. Changes, and/or cancellations, received by the City prior to the 15 th of the
month will be processed no later than the first pay period of the second month. Example: The Union notifies the City on January 15 th, the deductions
will be effective no later than the first full pay period in March. The parties recognize there is a lapse in time due to pay period processing constraints.

The City will make every effort to process earlier if possible.

The Union shall indemnify, defend, and hold the City harmless against any claims made and/or any suit against the City which may arise as a result of its deductions for membership dues or other programs sponsored by the Union.

2.2 New Hire Employee O
rientation and Information Requirements

(a) In accordance with Assembly Bill (AB) 119, the City shall provide the Union i) not less than ten (10) days’ notice in advance of new hire employee orientation, and ii) within thirty ( 30) days of hire or by the first pay period of the month following hire a list containing the following information on file from the City’s Human Resources database system.

1. Name;

2. Job title;

3. Department;

4. Work location;

5. Personal cellular telephone numbers, including work and home;

6. Personal email addresses as provided by new hire employee; and

7. Home address.

The above information shall be updated and provided to the Union at least every one-hundred and twenty (120) days for all bargaining unit members.

2.3 Use of City Fac
ilities
EXHIBIT 1

(a
) The Union shall be allowed by the department in which it represents employees' use of space on available bulletin boards for communications having to do with official Union business, such as times and places of meetings, provided such use does not interfere with the needs of the department. The Union may submit to the City Employee Relations Officer written communications having to do with official Union business for distribution by the City to identified Union shop stewards. Distribution may be made by e-mail.

(b) Any representative of the Union shall give notice to the department head or designated representative when contacting department employees on City facilities during the duty period of the employees, provided that solicitation for membership or o ther internal Union business shall be conducted during the non-duty hours of all employees concerned. Pre-arrangement for routine contact may be made with individual department heads and when made shall continue until revoked by the department head.

(c) City buildings and other facilities may be made available for use by City Employees of the Union or their representatives in accordance with such administrative procedures as may be established by the City Manager or depart - ment heads concerned.

2.4 Advanc
e Notice

Except in cases of emergency, reasonable advance written notice shall be given to the Union if affected by any ordinance, resolution, rule , or regulation directly relating to matters within the scope of representation proposed to be adopted by the City and shall be given the opportunity to negotiate if requested with the designated management representatives prior to adoption.

In cases of emergency, when the foregoing procedure is not practical or in the best public interest, the City may adopt or put into practice immediately such measures as are required. At the earliest practicable date thereafter , the Union shall be provided with the notice described above and be given an opportunity, if requested, to negotiate changes to said notice with the management representatives designated by the City Manager.

2.5 Attendance at Meetings by Employees

City employees who are official representatives or unit representatives of the Union shall be given reasonable time off with pay to attend meetings wit h City management representatives, or where matters within the scope of representation EXHIBIT 1
or
grievances are being considered. Such employee representatives shall submit a request for excused absence to their respective department heads, in a manner satisfactory prior to the scheduled meeting whenever possible. Time spent for these purposes while a representative is not scheduled to work shall not be compensated by the City and shall not be considered as hours worked. Except by mutual agreement, the number of the employees excused for such purposes shall not exceed three (3) per recognized bargaining unit.

2.6 Maintenance of Membership

All employees in the Wat
er Supervisory Unit who are members of the Union,
tendering periodic dues at the execution of this agreement, and all employees who thereafter become members of the Union shall, as a condition of employment, pay dues to the Union for the duration of this MOU , and each year thereafter. For a period of thirty (30) days prior to January 1, 2009, and thirty (30) days prior to any January 1, thereafter, any employee in the aforementioned unit who is a member of the Union shall have the right to withdraw from the Union discontinuing dues payments and retain employment in the City . Said withdrawal shall be communicated by the employee in writing to the City. The provisions of this section shall be operative only to the extent that they are permissible under California law.

2.7 Assignment of Classifications

New job classifications established by the City shall be assigned to the bargaining unit pursuant to Section 8 (b) of the City ’s Employer -Employee Relations Resolution after providing notice and the opportunity to consult with the Union regarding such matters.

2.8 Contract Ratificati
on

Ratification votes for Contract will be handled on City time during the day.

Section 3. Compliance with Federal Laws/Safety

3.1 Non-Discrimination. The City and the Union agree that there shall be no discrimination of any kind on the basis of age (over 40), race, color, religion (creed), national origin (ancestry), military or veteran status, physical and mental disability, medical condition, genetic information, marital status, sexual orientation, sex (gender based including pregnancy/childbirth, breastfeeding or related medical conditions), gender identity/expression, political affiliation or legitimate union activity or on any other basis prohibited by applicable F ederal and State law against any employee or applicant for employment.

EXHIBIT 1
3 .2 Fair Labor Standards Act. The Union agrees to cooperate with the City to insure its members ’ compliance with the provisions of the Fair Labor Standards Act (FLSA).

3.3 Safety. The Union shall cooperate with the City in promoting safety objectives as defined in Federal, State, and local regulations by actively supporting safety programs, promoting safe work habits of members , and encouraging an ongoing, active participation by its members in safety-related procedures and practices as offered and promulgated by the City of Stockton.

Section 4. Probation

4.1 Purpose

The probationary period shall be utilized for closely observing the employee’ s work, for securing the most effective adjustment of a new employee to a position, and for rejecting any probationary employee whose performance does not meet the required standards of work.

4.2 Original Entrance and Promotional Positions

All original appointments shall be subject to a probationary period of one (1) year with a review completed after si x (6) months from date of original appointment.

Promotional appointments shall be subject to a probationary period of six (6) months. The probationary period for original and promotional appointments will not be extended.

4.3 Retention/Rejection of Probationer

At the end of the probationary period, if the service of the probationary employee has b
een satisfactory to the appointing authority, the appointing authority shall file with the Director of Human Resources a statement in writing to such effect and stating that the retention of such employee in the service is desired. The City will make a good faith effort to notify a probationary employee two (2) weeks before the end of the probationary period whether or not regular status is granted; however, a failure on the part of the appointing authority to file such a statement at the end of the probationary period shall not constitute a rejection of the probationer as defined in Civil Service Rules.

Dur
ing the probationary period an employee may be rejected at any time by the appointing authority. Any employee rejected during the probationary period following a promotional appointment, shall be reinstated to the position from which promoted unless charges are filed and the employee is discharged in the manner EXHIBIT 1
pr
ovided in section 7 of this MOU and in the Civil Service Ordinance and Civil Service Rules, which are consistent therewith.

4.4 Alcohol and Drug Testing.

All employees hired into original and reemployed appointments in safety-sensitive positions identified by the City must pass a drug and alcohol screening prior to being offered City employment due to positions requiring a commer cial driver’s license or hazardous material certification. This shall include non-represented part- time, seasonal, provisional, and temporary appointments.

Section 5. Layoff

5.1 Layoff

Any employee may be laid off by an appointing authority in the event of the abolition of the employee’s position by the City Council, or if a shortage of work or funds requires a reduction in personnel.

5.2 Layoff Scope

(a) Layoffs shall be within departments of the City.

(b) Departments of the City are defined as follows:

5.3 N
otice of Layoff

The City will give advance written notice of at least one (1) pay period to employees EXHIBIT 1
wh
o will be laid off.

5.4 Precedence by Employment Status

(a) No regular status employees shall be laid off while employees working in an extra help, seasonal, temporary, provisional, or probationary status are retained in the same classification as such regular status employee. The order of layoff among employees not having regular status shall be according to the following categories:

(1) extra help or seasonal
(2) provisional
(3) temporary
(4) probationary

Layoffs shall be by job classification according to reverse order of seniority as determined by total service in that class , except as specified above. For the purpose of this procedure part-time classes shall be considered as separate from regular full-time classes.

The following provisions shall apply in computing total continuous service:

(1) Time worked in a regular status or probationary
status shall count as service.
(2) Time spent on military leave shall count as
service in the event the leave was taken
subsequent to entry.
(3) Time worked in an extra help, seasonal,
provisional, temporary, grant or other limited
term status shall not count as service.

If two (2) or more employees have the same seniority, the order of seniority shall be determined by their respective ranking on the eligibility list for hire.

If two (2) or more employees have the same seniority, but were not hired from a ranked eligibility list, the order of seniority shall be determined by lot.

If two (2) or more employees have the same seniority, but were hired from separate ranked eligibility lists, the order of seniority shall be determined by lot.

(b) Any employee in the Water Supervisory Unit who is laid off may complete a City employment application for any position currently staffed by a part time, EXHIBIT 1
provisional, or temporary employee. The Human Resources Department will evaluate the employment application. If the laid off employee meets the minimum qualifications of that position, they shall have the option of displacing the part time, provisional, or temporary employee.

5.5 Employee Options

Employees laid off shall have any of the following choices:

(a) Displacing the employee in the same department and in the same or clearly comparable classification as determined by the Director of Human Resources as having the least seniority in that classification. This option shall be exercised before any other option.

(b)
Taking a voluntary demotion within the department to a classification in which the employee had prior regular status, thus displacing the employee working in the classification who has the least seniority in that classification.

5.6 Health and Welfare Benefits during Layoff

Regular status employees who are laid off will have an option of maintaining their existing health and welfare benefi ts for thirty -six (36) months from the date of layoff, provided timely payments of the premiums by the employee are made to the City, according to City regulations, and provided the employee otherwise meets the requirements of Federal and State regulations.

Section 6. Reemployment
(a) The name of each employee who is laid off in accordance with section 5 shall be placed at the head of the eligibility list for the class of positions which that employee held, and shall be given preference in filling vacancies in that class.

(b) An employee laid off in accordance with this section shall be placed on the eligibility list or lists for any lower or comparable class or classes in the same department, provided that the appointing authority and the department head in charge of this lower or comparable class determine that the employee is competent to perform the duties thereof in strict accordance with the class specifications. This right of a laid off employee shall remain effective for two (2) years from the date of latest separation from the service. The employee shall not be placed on said eligibility list or lists without first submitting a written request. Employee’s place on said list or lists shall be at the head of the eligibility list for the class of positions for which qualified as hereinabove set forth and shall be given preference in filling vacancies except for those persons placed on said list or lists of reemployment in EXHIBIT 1
t
he same positions previously held. An employee who waives reemployment to a full time position three (3) times shall have their name removed from this reemployment list unless mutually agreed to by the Department and employee.

Upon certification for appointment to a new position never having been held by this employee, the probationary period must be completed as required in this MOU.

Section 7. Discipline
Disciplinary action, including discharge, suspension, reduction in pay or demotion, may be taken against any employee for cause.

Expungement of records will be considered in accordance with the City’s Progressive Discipline Policy, HR-08. Memorandums of Discussion or Correction maintained in Department files may be requested to be removed, subject to the Department Head’s approval.

7.1 Pre-d
isciplinary Rights

An employee facing potential disciplinary action will be entitled to the following pre- disciplinary rights:

(a) Notice of proposed discipline.

(b) Date(s) proposed discipline will be effective.

(d) Ten (10) calendar days in which an employee or the representative may respond either orally or in writing to the department head.

(e) The employee must be provided with any written materials, reports and documents upon which the action is based.

7.2 Administrative Leave

The City may place an employee on administrative leave with pay pending the completion of the pre-disciplinary process.

7.3 Provisions

The appointing authority may discharge, suspend, or demote any employee in the classified service provided the Stockton Municipal Code provisions and the rules and regulations of the Civil Service Commission and any applicable provisions of EXHIBIT 1
l
aw are followed. Such provisions allow the employee suspended, demoted or discharged to appeal such action. The employee may take only one (1) of the following actions:

(a) File no appeal.

(b) File an appeal with the Civil Service Commission within ten (10) calendar days of written notification of the action. (Such filing will foreclose use of the grievance procedure.)

If the employee fails to do (b) or (c) above within the prescribed time frames, these rights will have been waived.

Section 8. Grievance Procedures

8.1 Definition

8.2 Filing Deadline

(a) No grievance involving demotion, suspension, discharge or other em
ployment penalty will be entertained unless it is filed in writing with the Director of Human Resources within ten (10) calendar days of the time at which the affected employee received written notification of such action. All other grievances must be filed within thirty (30) calendar days from the time the employee knew or had reason to know of the facts giving rise to the grievance.

(b)
With written consent of the Director of Human Resources or their designee and the Union Business Agent or their designee, time limits may be extended and/or Steps 1, 2 and/or 3 of the Grievance Procedure waived.

8.3 Grievance Processing

(a) Step 1 - Departmental Review. Any employee claiming to have a grievance EXHIBIT 1
m
ay discuss the complaint with such manageme nt official in the department where employed as the department head may designate. If the issue is not resolved within the department within twenty (20) working days from the day of presentation or if the employee elects to submit the grievance directly to the Union recognized as the representative of that employee's classification, or if the employee/Union official notifies the Director of Human Resources, in writing, that a grievance exists, the procedure hereinafter specified may be invoked.

(b) Step 2 - Director of Human Resources Review. If the employee is not satisfied with the response at Step one (1), then the employee may appeal the grievance to the Director of Human Resources within twenty (20) calendar days of the receipt of written response at Step one (1). Such appeal must state with particularity: 1) the specific policy, rule, or provision which is alleged to have been violated; 2) the statement of fact s comprising the violation; and 3) the requested remedy. The Union may file and process grievance(s) on behalf of the specifically named employee. The Director of Human Resources shall have twenty (20) working days (in which the Human Resources Office i s open) to investigate the issues, meet with the complainant , and attempt to reach a satisfactory resolution of the problem. No grievance may be processed under the following two (2) paragraphs which has not first been filed and investigated in accordance with this paragraph, except for the resolution of compensation complaints.

(c) Step 3 -
Arbitration. If the parties are unable to reach a mutually satisfactory accord on the grievance at Step two (2) within twenty (20) calendar days either the Union or the City may require that the grievance be referred to an impartial arbitrator mutually selected by the parties, or if the parties are unable to mutually agree, from a list of seven (7) arbitrators provided by the State Conciliation Service.

The arbitrator shall be chosen by the alternative strike method, with first choice being determined by lot. The fees and expenses of the arbitrator and of a court reporter shall be shared equally by both parties. Each party, however, shall bear the cost of its own presentation, including preparation and post hearing briefs, if any.

(d) Effect of Decision. Decisions of ar
bitrators on matters properly before them
shall be final and binding on the parties hereto except as provided otherwise herein.

8.4 Scope of Arbitration

(a) No arbitrator shall entertain, hear, decide or make recommendations on any dispute unless such dispute involves a position in a unit represented by the Union and unless such dispute falls within the definition of a grievance as set forth in EXHIBIT 1
se
ction 8.1.

(b) Proposals to add to or change this MOU or written agreements or addenda supplementary hereto shall not be arbitrable and no proposal to modify, amend or terminate this MOU, nor any matter or subject arising out of or in connection with such proposal, may be referred to arbitration under this s ection. No arbitrator selected pursuant to this section shall have the power to amend or modify this MOU or written agreements or addenda supplementary hereto or to establish any new terms or conditions of employment.

No changes in this MOU or interpretations thereof (except interpretations resulting from arbitration proceedings hereunder) will be recognized unless agreed to by the Director of Human Resources and the Union.

8.5 Other Provisions

If the Director of Human Resources or City Manager, in pursuance of the procedures outlined above, resolve a grievance which involves suspension or discharge, they may agree to payment for lost time or to reinstatement with or without payment for lost time, but in the event the dispute is referred to arbitration and the arbitrator finds that the City had cause to take the action complained of, the arbitrator may not substitute th eir judgment for the judgment of management and if the findings are that the City had such right, the arbitrator may not order reinstatement and may not assess any penalty upon the City.

Com
plaints which allege the employee is not being compensated in accordance with the provisions of this MOU shall be considered as grievances and processed pursuant to section 8.3. Any other matters of compensation are to be resolved in the meeting and conferring process and if not detailed in the MOU which results from such meeting and conferring process shall be deemed withdrawn until the meeting and conferring process is next open for such decision. No adjustment shall be retroactive for more than one-hundred and eighty (180) calendar days from the date upon which the complaint was filed.

Specified time limits may be modified only in writing. All appeals and responses must be provided in writing.

The provisions of this section shall not abridge any rights to which an employee EXHIBIT 1
m
ay be entitled under the Stockton Municipal Code and/or Civil Service Rules and Regulations, nor shall it be administered in a manner which would abrogate any power which, under the Stockton Municipal Code, may be within the sole province and discretion of the Civil Service Commission.

All grievances of employees in units represented by the Union shall be processed under this section. If the Stockton Municipal Code and/or the Civil Service Rules and Regulations requires that a differing option be available to the employee, no action under paragraph (c) of subsection 8.3 above shall be taken unless it is determined that the employee is not utilizing such option.

No action under paragraph (c) of subsection 8.3 above shall be taken if action on the complaint or grievance has been taken by the Civil Service Commission or if the complaint or grievance is pending before the Civil Service Commission.

If any award by an ar
bitrator requires action by the City Council or the Civil Service Commission before it can be placed in effect, the City Manager and the Director of Human Resources will recommend to the City Council or the Civil Serv ice Commission, as appropriate, that it follow such award.

Section 9. Leaves

9.1 Vacation Leaves

All regular status employees, excluding provisional , temporary , and part -time employees, shall accrue vacation leave with pay in accordance with the following schedules:

(a) Vacation- FLSA Non-Exempt employees shall accrue vacation leave with pay in accordance with the following schedule:

(1) Less than one and one- half (1- 1/2) years continuous employment .............................................................. 80 hours/year.

(2) After one and one- half (1-1/2) to seven and one- half (7-1/2) years continuous employment ................................ 108 hours/year.

(3) After seven and one- half (7- 1/2) to fifteen (15) years continuous employment .......................................... 144 hours/year.

(4) After fifteen (15) to twenty -five (25) years continuous employment ............................................................ 189 hours/year.

EXHIBIT 1
(5
) Thereafter, seven (7) additional hours for each completed year of service in excess of twenty-five (25) years.

(6) Employees shall accrue vacation on a per pay period basis.

(b) FLSA N on-E xempt Employees Maximum Vacation Accrual Employees reaching the maximum hours shall stop accruing additional hours until they are below the caps listed below . No vacation hours maybe added to sick leave and balances.

Max
imum Vacation Accrual Caps.

40 hour employee
Under 1.5 yrs 120 hours (15 days)

1.5-7.5 yrs 240 hours (30 days)

7.5-15 yrs 280 hours (35 days)
15-25 yrs 320 hours (40 days)
26 yrs 328 hours (41 days)
27 yrs 336 hours (42 days)
28 yrs 344 hours (43 days)
29 yrs 352 hours (44 days)

For every year of service beyond 29, the employee is allowed to add an additional seven (7) hours to the maximum accrual cap.

(c) Vacation-FLSA Exempt employees shall accrue vacation leave with pay in accordance with the following schedule:
(1) Less than 1-1/2 years continuous employment 120 hours/year (2) After 1-1/2 years up to 7 1/2 years 1 48 hours/year (3) After 7-1/2 years up to 15 years 188 hours/year (4) After 15 years up to 25 years 229 hours/year (5) Seven (7) additional hours for each completed year of service in excess of twenty-five (25) years.
(6) Employees shall accrue vacation on a per pay period payroll basis.

(d) FLSA Exempt Employees Maximum Vacation Accrual. Employees reaching the maximum hours shall stop accruing additional hours until they are below the caps listed here. No vacation hours may be added to sick leave balances.

The maximum number of vacation hours that FLSA exempt employees shall accrue are as follows:

EXHIBIT 1

U
nder 1.5 years 200 hours

1.5 – 7.5 years 320 hours

7.5 – 15 years 360 hours
15 – 25 years 400 hours
25 years 408 hours
26 years 416 hours
27 years 424 hours
28 years plus 7 hours each additional year

(e) An employee may elect to receive cash payment for up to a maximum of forty (40) hours of accumulated vacation hours annually except that all cash outs shall be suspended during furlough or fiscal emergency periods, however, effective for FY 2023/2024 and 2024/2025 only, an employee may elect to receive a cash payment for a maximum of forty (40) hours of their unused accumulated vacation balance after the use of a scheduled vacation of forty (40) consecutive hours or more in that same or prior fiscal year. To utilize this option, employees must maintain a balance of forty (40) accrued vacation hours after the cash payment. When in effect, this option may be exercised once per fiscal year. Employees may elect this option by December 31 of each year for the cash out the following calendar year. The cash out election is irrevocable and the City will follow IRS regulations regarding cash payment of leave.

(f) Vacation Cash Out Upon Separation.

An eligible employee separating from City service for any reason who has unused vacation time shall be paid for such vacation time up to the effective date of the last day of employment with the City. Payment for unused vacation shall be made at the final rate of pay. Payment for the unused vacation hours shall be paid post separation date at no later than the second regularly scheduled pay period pay date following separation. Prior to separation from City service, the City does not provide to employees any vacation cash out or sell back for accrued but unused vacation hours.

(g) Vacation Scheduling.

Vacation leaves will be scheduled so that they will not interfere with the normal operation of the City’s business and with due consideration for the wishes of the employee. Each division will prepare its vacation schedule and distribute to all employees within the unit.

9.2 Sick Leav
e

EXHIBIT 1
(a
) Accrual . A ll regular st atus full-time employees , except provisional , and temporary employees, shall accrue sick leave at the rate of eight (8) hours for each month of completed service.

Al
l regular status employees, except provisional , and tem porary employees, scheduled to work less than a full month shall accrue sick leave on a prorated basis. Unused sick leave shall accrue from year to year. Employees shall continue to accrue sick leave while off duty on authorized sick leave; provided, however, an employee shall not accrue sick leave during any leave or leaves of absence without pay granted to the employee.

(b) Usage. Employees are entitled to sick leave pay for those days which the employee would normally have worked, to a maximum of the hours accrued, described as:

Pr
eventive medical, dental, optical care, illness, injury or exposure to contagious disease which incapacitates the employee from performing normal work duties.

This includes disabilities caused or contributed by pregnancy, miscarriage, abortion, childbirth and recovery therefrom.

(c) Family Sick Leave . E
mployees may utilize up to one- half (1/2) of their
annual sick leave accrual in the case of illness or injury in the employee's immediate family when such illness or injury requires personal care.

Suc
h leave shall be restricted to the employee's parents, spouse, mother -in-law, father-in-law, child, stepchild, brother, sister, brother -in-law, sister -in-law, grandparent, grandchild, legal depend ent, registered domestic partner, and “designated person.” For purposes of paid sick leave, a “designated person” means “a person identified by the employee at the time the employee requests paid sick leave.” An employee may select one person as a “designated person” in a twelve (12) month period.

In special cases, with the approval of the Director of Human Resources, a department head may grant the use of sick leave in other circumstances.

It is not the intent of this provision to conflict with any state or federally mandated policies, such as the Family Medical Leave Act (FMLA), the California Family Rights Act (CFRA), or Pregnancy Disability Leave (PDL).

(d) Reporting Procedures for Sick Leave. When the requirement for sick leave is known to the employee in advance of the absence (for example, including but not limited to scheduled medical, dental or vision appointments), the employee EXHIBIT 1
s
hall request authorization for such sick leave from the department head prior to such absence. In all other instances, the employee shall notify their supervisor as promptly as possible of his/her absence.

(e) Verification Procedures

(1) Before being paid for the use of accrued sick leave, the employee shall submit a signed statement to the department head, on a prescribed form, stating the dates and hours of absence, the exact reason, and such other information as is necessary for the request to be evaluated. If an employee doesn't return to work prior to the preparation of the payroll, other arrangements may be made with the department head.

(2) Doctor's Certificate or Other Proof .

The employee’s department
head may require a doctor’s certificate or other reasonable proof of illness as they deem necessary i n order for an employee to receive an excused absence from work and sick leave pay. The employee shall be given notice prior to returning to work that they will be required to provide such documentation. Employees who have unscheduled absences due to illness on a scheduled work day preceding or following a holiday may be required to bring a doctor’s certificate or other reasonable proof of illness in order to receive an excused absence and sick leave pay. If an employee’s illness results in an absence from work for more than three (3) consecutive days, a doctor’s certificate or other reasonable proof of illness may be required.

In addition, the City may monitor and control the appropriate use of sick leave by employees and if reasonable cause is articulated, can limit use of sick leave and require additional verification.

(f) Use of Sick Leave While on Vacation. An employee who is injured or who becomes ill while on vacation may be paid for sick leave in lieu of vacation provided that the employee:

(1)
Was hospitalized during the period for which sick leave is claimed, or

(2) Received medical treatment or diagnosis and presents a statement indicating disabling illness or injury signed by a physician covering the period for which sick leave is claimed.

(g) Payment for Unused Sick Leave for Unit Employees .

Effective February
17, 2012, all accumulated or future accruals of sick leave shall have no cash value upon separation of employment and employees shall not be allowed to cash out EXHIBIT 1
unus
ed sick leave except as provided below.

(h) CalPERS Service Credit for Unused Sick Leave. E mployees shall be eligible for CalPERS service credit for any unused sick leave at retirement not otherwise compensated for in (i) below. Employees hired on or after December 29, 2012 shall not be eligible for this service credit.

(i) Sick Leave Retention Benefit. If,
after subtracting the equivalent of one (1)
full year of service credit (2080 hours), which may be applied to CALPERS service credit, any balance remaining upon separation shall be paid as follows to employees who have remained in City service until the dates specified:

(1)
Separation prior to July 1, 2014, no payment of unused sick leave at separation shall occur for separating employees before this date;

(2) Separation between July 1, 2014 and June 30, 2015, payment of unused sick leave which the employee held on February 16, 2012 shall be paid at thirty-five percent (35%) of its cash value to separating employees between these dates; and

(3) Separation after July 1, 2015, payment of unused sick leave which the employee held on February 16, 2012 shall be paid at fifty percent (50%) of its cash value to separating employees after this date.

(4) Service credit for unused sick leave shall be in accordance with PERS regulations.

9.3 Other Leaves with Pay

(a) Bereavement Leave. In the event of a death in the immediate family of an employee, the employee shall, upon request , be granted up to three (3) days bereavement leave with pay without charge to their accumulated sick leave. The employee shall, upon request, be granted an additional two (2) days bereavement leave which shall be charged against the employee’s accumulated sick leave or annual leave. For the purposes of this paragraph, the immediate family shall be restricted to the employee’s parents, spouse, mother -in-law, father-in-law, child, stepchild, brother, sister, brother -in-law, sister -in-law, grandparent, grandchild, and registered domestic partner.

In t
he event of the death of a person not immediately related to an employee as defined above, the employee's department head may grant up to three (3) days bereavement leave, upon request, which shall be charged against the employee's EXHIBIT 1
ac
cumulated sick leave or annual leave.

Bereavement Leave will not be counted against the employee under the City’s absence control policy when evaluating the employee’s work performance. If the deceased is the person who is the employee’ s current “designated person” for purposes of family sick leave pursuant to Section 9.2(c), the request to use sick leave or annual leave shall not be unreasonably denied.

(b) Court A
ppearance. Upon approval by the department head, an employee, other than a provisional or temporary employee, shall be permitted authorized absence from duty for appearance in Court because of jury service, in obedi ence to subpoena or by direction of proper authority, in accordance with the following provisions:

Sai
d absence from duty including necessary travel time, will be for actual hours served on jury duty or testif ying as a witness in a criminal case, other than as a defendant. This shall include the time from when the employee is ordered to appear until the time the employee is released from the court. As a condition of receiving such pay, the employee must remit to the City, through the employee's department head, within fifteen (15) days after receipt, all fees received except those specifically allowed for mileage and expenses.

If an employee is not due to appear for jury duty or as a witness until an afternoon court session, the employee will be expected to work their usual morning schedule.

If an employee is required to appear for a morning court session and is sent home before noon and not required to return in the afternoon, the employee will be expected to work his usual afternoon schedule.

Said absence from duty will be without pay when the employee appears in private litigation to which the City of Stockton is not a party.

Any fees allowed, except for reimbursement of expenses incurred, shall be remitted to the City through the employee's department head.

Notwithstanding the foregoing, attendance in court in connection with an employee's official duties or on behalf of the City of Stockton in connection with a case in which the City of Stockton is a party, together with travel time necessarily involved, shall not be considered absent from duty within the meaning of the section.

(c) Military Leave. An employee of the City who is a member of the National Guard or Naval Militia or a member of the Reserve Corps or Force of the Federal EXHIBIT 1
M
ilitary, Naval or Marine Service and is ordered to duty shall be granted leave with pay while engaged therein, provided the leave does not exceed thirty (30) days in any calendar year.

All regular status employees in the service of the City shall be allowed leave of absence without pay for duration of a national emergency who have been inducted into the Army, Navy, Marine Corps, Air Force or any other branch of the Military Service of the United States or the State of California. Said employees shall be reinstated in the position they held when they were inducted into Military Service, except as hereinafter stated, providing they are physically fit as shown by a medical examination by the City Physician or other physician appointed to make a medical examination.

In the case of a probationary employee having served a minimum probationary period of six (6) months at the time of induction, it shall be optional with the department head and the Director of Human Resources to grant regular status to said employee before induction.

All probationary employees inducted into Military Service not having served the minimum probationary period of six (6) months, or having served the minimum probationary period of six (6) months, but not having received regular status shall be allowed a leave of absence without pay for the duration of a national emergency, but said employees shall be placed at the head of the eligible list for such position in the order of their seniority of employment and when appointed to a vacant position, they must be physically fit as above specified and shall serve the balance of their probationary period before attaining the status of a regular status employee.

9.4 Workers' Compensation Leave

(a) Benefits. Workers’ Compensation benefits shall be provided in accordance with State law, whenever an employee is absent from duty because of disability caused by illness or injury which has been declared to be compensable under the Workers’ Compensation Law. An employee on Workers’ Compensation may use accrued leave, if needed, to supplement benefits, up to the amount required to receive a full paycheck.

(b) Forms and Procedures. Workers’ compensation processing shall be EXHIBIT 1
c
onsistent with City procedures and in accordance with state workers’ compensation regulations. An employee who sustains a work -related injury or illness shall immediately inform their supervisor no matter how minor an on- the- job injury may appear. An employee who sustains a work -related injury or illness is required to seek medical care at facilities designated by the City unless they have filed a pre- designation of personal physician prior to sustaining the work - related injury or illness. For a list of City designated medical care facilities and/or physicians, please contact the Human Resources department.

9.5 Leave of
Absence

(a) Entitlement. E mployees shall not be entitled to a leave of absence as a matter of right, but only in accordance with the provisions of law and the City of Stockton Municipal Code. Unless otherwise provided, the granting of a leave of absence also grants to the employee the right to return to a position in the same classification or equivalent classification, as the employee held at the time the leave was granted. Leaves of absence are subject to eligibility in accordance with state and federal guidelines. The granting of any leave of absence shall be based on the presumption that the employee intends to return to work upon the expiration of the leave.

(b) Approval.

All leaves of absence without pay must be pre- approved by the department head and filed with the Human Resources Department. No such leave may extend beyond twelve (12) months, except in the case of absence due to job incurred disability where a determination may be made based upon the needs of public service, or in the event an application for service connected disability retirement has been filed.

(c) A
ll leaves without pay must be recommended by the department head and approved by the Director of Human Resources. Leaves of absence approved in accordance with state and federal guidelines may be taken without pay for illness following the exhaustion of accrued sick, vacation, and other accrued leave hours.

(e) Authorized absence without pay which exceeds thirty (30) consecutive calendar days, except military leave, shall not be included in determining salary adjustment rights, based on length of employment. Periods of time during which an employee is required to be absent from their position by reason of an injury or EXHIBIT 1
di
sease for which they are entitled to and currently receiving Workers' Compensation benefits shall be included in computing length of service for the purpose of determining that employee's salary adjustment.

9.6 A bsence Without Official Leave (AWOL)

(a) Failure to Report to Duty or Failure to Return after Leave. Failure to report for duty or failure to report for duty after a leave of absence request has been disapproved, revoked, or canceled, or at the expiration of a leave, shall be considered an absence without official leave and shall be subject to discipline.

(b) Voluntary Resignation. Any employee absent without official leave for two (2) or more consecutive scheduled days without a satisfactory explanation as approved by the Director of Human Resources shall be deemed to have voluntarily resigned from the City of Stockton. An employee must provide a written statement to the Human Resources Department regarding a "satisfactory explanation", within ten (10) calendar days after the City mails a notice of voluntary resignation to the employee's last known address.

9.7 Parental/Adoption/Pregnancy Leave

Family medical leaves shall be in accordance with the Family Medical Leave Act (“FMLA”) of 1993, the California Family Rights Act (“CFRA”), or Pregnancy Disability Leave (“PDL”), and/or other applicable state and federal laws.

Section 10. Days and Hours of Work

10.1 Workweek

The forty (40)-hour workweek shall be from Sunday at midnight through the following Saturday at midnight. The 9/80 workweek shall be from Friday at middle of regular shift through the following Friday at middle of regular shift.

10.2 Meal Periods and Rest Periods

(a) Employees shall receive a one (1) hour or one- half (1/2) hour meal period, without pay, each day and a fifteen (15) minute paid rest period during the first half of the work day and a second fifteen (15) minute paid rest period during the second half of the work day.

(b) Where operational requirements of a department require deviations from this schedule, meal periods of other durations and alternate rest periods may be instituted with the approval of the Department Head or Designee.

EXHIBIT 1
S
ection 11. Overtime

11.1 Overtime Authorization

All compensable overtime m ust be authorized by the department head or their designated representative in advance of being worked. If prior authorization is not feasible because of emergency conditions, a confirming authorization must be made on the next regular working day following the date on which the overtime was worked.

11.2 Definition

The following provisions pertaining to authorized or statutorily required overtime work shall apply to non- FLSA exempt employees:

(a) Statutory overtime shall be paid on actual time worked in excess of forty (40) hours in any workweek. Such overtime sh all be paid for at time and one- half (1-1/2) including employees employed on a per hour or per day basis or except as provided elsewhere herein. Observed holidays, floating holidays, jury duty leave, bereavement leave, and sick leave hours taken shall be considered as time worked for overtime calculation purposes . V acation, or other compensated time off shall not be considered as actual time worked.

(b) On a holiday observed by the City an employee who is not regularly scheduled to work holidays shall be paid for a regular work day (pursuant to holiday benefit under section 12) plus time and one- half (1 -1/2) for actual time worked including employees employed on a per hour or per day basis, or except as provided elsewhere herein.

(c) The City may require mandatory overtime when operational needs o f the City dictates the need to work such overtime. Work in excess of forty (40) hours worked as defined in (a) above in any workweek that qualifies for overtime will be paid or taken as Compensatory Time-off (CTO) in accordance with section

11.5(b).

(d) Temporary Upgrade Pay.

Employees who are not FLSA exempt and are assigned to work overtime in a position or classification other than the position or classification to which they are permanently appointed to, will be paid overtime at the hourly rate attached to the position or classification in which they are performing such overtime work.

11.3 Standby Duty
EXHIBIT 1
W
hen warranted and in the interest of City operation, department heads or designee may assign employees to "standby" status.

(a) Application of "standby" shall be as follows:

(2) Employees on standby shall have the option to trade hours of standby status with another qualified employee in the same unit or division with departmental approval.

(3) Standby shall be assigned in a minimum of eight (8) hours.

Standby for weekends i.e., Saturday, Sunday or extended holiday weekends (Friday – Sunday, or Saturday – Monday) will be assigned eight (8) – forty-eight ( 48) hour blocks to one (1) person per weekend (up to seventy-two (72) hours for holiday weekend).

(b) Compensation of "standby" shall be as follows:

(1) Employees assigned to standby duty shall be paid three dollars ( $3.00) per hour , while assigned to be on standby. An employee shall earn time and one- half (1- 1/2) for all actual time worked while on standby duty status only if eligible for overtime as defined in section 11.2 above. An employee shall not continue to receive the “standby” premium during actual time worked, or for any hours paid as overtime or call back. Standby is not considered as time in “paid status because of work performed” for purposes of calculating overtime.

11.4 Call Back

Employees called back to work from off duty status, shall be compensated for a minimum of two (2) hours and forty -five (45) minutes pay at time and one- half (1- 1/2) or actual time worked at time and one- half (1-1/2) if eligible for overti me as defined in Section 11.2, above, whichever is greater.

When authorized by the department, employees who are contacted and who provide remote support via telephone, internet, or network connection will be paid EXHIBIT 1
t
ime and one-half (1-1/2) for time worked in fifteen (15) minute intervals, if eligible for overtime as defined in section 11.2 above. Intervals cannot be compounded or overlapped.

To be eligible for call-back pay, all of the following conditions must be met:

(a) The call -back must occur outside of the employee’s regular work hours; including overtime.

(b) The call-back time worked must not be contiguous to the employee’s regular work hours; including overtime.

(c) An employee is ineligible to receive a premium for both standby and call back. For example, employees shall not receive standby pay for hours in which they are paid overtime or call back pay.

11.5 Compensatory Time

(a) Definition. A s used in this section, the term Compensatory Time refers to that time which an employee is entitled to be absent from duty with pay for hours worked in addition to or excess of their normal work schedule.

(b) Accrual . F
or hours worked in excess of forty (40) hours in a seven (7) day work period as defined in section 11.2(a) , Compensatory Time shall be earned at the rate of time and one-half (1-1/2).

Use of Compensatory Time shall be scheduled with the due consideration for the wishes of the employee and so as to not interfere with the normal operation of City business. Approval of request for use of Compensatory Time shall be at the sole discretion of the department head, but once approved, cannot be changed unless an emergency situation arises.

(d) P
ayment . Once one hundred (100) hours of Compensatory Time is accrued on the books, all other hours worked in excess of forty (40) hours in a seven (7) day work period will automatically be paid. At the end of each calendar year, all Compensatory Time will be carried forward (forty (40) hours maximum), unless the employee elects to have the compensatory balance paid. Carryover Compensatory Time cannot exceed the forty (40) hours maximum.

Any
Compensatory Time balance in excess of forty (40) hours remaining at the EXHIBIT 1
end
of the calendar year wi ll automatically be paid unless the employee submits the Compensatory Time Deferral form to Payroll by November 1st. In order for the employee to be eligible for this option, they must have at least one (1) pre- approved scheduled day off in December. If the employee is unable to take days off as planned in December, the payout will occur in January.

11.6 Meal Allowance

The City shall provide a meal allowance of fifteen dollars ($15.00) for an employee who is held over and works a minimum of four (4) hours. Employees called back to work or called back from a day off with less than two (2) hours’ notice shall qualify for the f ifteen dollar ($15.00) meal allowance when they work a minimum of four (4) hours. Extension of the work schedule or call -back must be properly authorized by the employee's supervisor or other designated personnel.

Section 12. Holidays

12.1 Qualifying for Holiday Pay

All regular status employees, excluding provisional , temporary, and part -time employees, shall be entitled to take the holiday benefit at full pay not to exceed the employee’s regular work day for any one (1) holiday. For an employee working on a 4/10, 9/80 or 12- hour work day plan, holidays shall be paid equivalent to the employee’s regularly scheduled work hours (e.g. 9 hours for 9- hour day or 8 hours on an 8- hour day on the 9/80 schedule, or 12 hours of holiday pay for 12- hour shift).

12.2 Holidays Observed by the City

Effective January 1, and upon approval by the City Council on its regular agenda in accordance with the Ralph M. Brown Act employees shall receive the following holidays on full pay for each of the below listed holidays . Unless otherwise provided in this section, the City observes the following holiday s on the dates indicated:

(1) January 1………… .................................................................. New Years' Day (2) Third Monday in January (FLOATING) ..........Martin Luther King Jr.'s Birthday (3) Second Monday in February (FLOATING) .......................... Lincoln's Birthday (4) Third Monday in February (FLOATING) ....................... Washington's Birthday (5) March 31 (FLOATING) .................................................Cesar Chavez Birthday (6) Last Monday in May ................................................................... M emorial Day (7) July 4 .................................................................................. Independence Day (8) First Monday in September .............................................................. Labor Day EXHIBIT 1
(
9) Second Monday in October (FLOATING).................................. Columbus Day (10) November 11 ............................................................................ Veteran's Day (11) Fourth Thursday in November .................................................... Thanksgiving (12) The day following the day known as Thanksgiving
(13) December 25 ............................................................................ Christmas Day (14) Birthday Holiday

Floating holidays must be scheduled and used by December 31st of each year and do not carry forward into the subsequent year . There is no cash value for any unused floating holiday hours. While the floating holiday leave hours will be available as of January 1 st each year, employees have not earned each of the floating holidays until the actual holiday occurs; if an employee separates employment and has utilized more floating holiday hours than earned, the employee’s vacation or compensatory time hours will be charged for the same number of hours previously taken as floating holiday hours.

Birthday Holiday Leave. The department head, with due consideration for the wishes of the employee, may authorize the birthday holiday to be taken within sixty (60) calendar days beginning on the day of the employee’s birthday.

For employees on a Monday through Friday workweek, if a fixed holiday falls on a Sunday, the following Monday will be observed. If holidays fall on a Saturday, the preceding Friday will be observed. For employees who work in a division staffed for twenty -four (24) hour operations, fixed holidays that fall on a Saturday or Sunday will be observed on Saturday or Sunday respectively.

A holiday that falls on an employee’s normally scheduled day off will receive a regular work day worth of holiday pay at their regular rate of pay, however the holiday hours will not be counted as time worked.

If an employee works on a holiday, the employee will receive a regular work day worth of holiday pay at their regular rate of pay, actual hours worked will be paid at the time and one half (1 -1/2) and holiday hours will not be counted as time worked.

EXHIBIT 1

If an
employee works only partial hours on a holiday, partial holiday hours will be counted as time worked for FLSA overtime calculation purposes (up to the employee’s normal work day).

12.3 Compensation for Holidays Worked

Prior approval for holiday work must be secured from the department head except in emergency situations where said approval cannot be obtained beforehand.

Section 13. Compensation and Allowance Other Than Base Salary

13.1 Public Employees’ Retirement System (P.E.R.S.) Benefits for Unit Employees Hired on or before December 28, 2012

(a) The City will pay seven percent (7%) of the employee's current base salary (employee's contribution) and other compensation as qualified by State law towards the (P.E.R.S.). Such amounts will be applied to the employee's individual account in accordance with California Government Code section 20691 unless modified below.

(b) The City's P.E.R.S. retirement plan is two percent (2%) at age fifty-five (55).

(c) The City's P.E.R.S. retirement plan is modified to reflect California Government Code section 21024 (Military Service Credit as Public Service) and section 21027 (Military Service Credit for Retired Persons) effective upon adoption by Stockton City Council and Board Administration of the P.E.R.S.

(d) The City will provide P.E.R.S. California Government Code Section 20692 (Employer Paid Member Contributions Converted to Payrate during the Final Compensation Period) as added P.E.R.S. benefit. At the beginning of the employee’s last year of employment, the employee will pay their employee’s seven percent (7%) benefit cost through an automatic payroll deduction. The City will increase the base salary for those employees by the same additional contribution above the seven percent (7%), if any, for the last twelve (12) months of employment. Internal Revenue Service (IRS) Code 414H(2) will be concurrently implemented with P.E.R. S. California Government Code section 20692, to be effective upon adoption by the Stockton City Council and P.E.R.S. Administration Board.

(e) The City will provide P.E.R.S. California Government Code section 20965 (Credit for Unused Sick Leave) as added P.E.R.S. benefits, to be effective EXHIBIT 1
upo
n adoption by the Stockton City Council and P.E.R.S. Administration Board.

(f) The City will provide P.E.R.S. California Government Code section 21574 (Fourth Level of 1959 Survivor Benefits) as added P.E.R.S. benefi ts, to be effective upon adoption by the Stockton City Council and P.E.R.S.

Administration Board.

(g) The City will provide P .E.R.S. California Government Code section 21335 up to a five percent (5%) Annual Cost -of-Living Allowance, as added P.E.R.S. benefit.

(h) Effective August 1, 2011, in consideration of (a) above, employees hired on or before December 28, 2012 shall pay seven percent (7%) of the employee’s current base salary (employee contribution) and other compensation as qualified by state law towards the Public Employees’ Retirement System (P.E.R.S.) employer’s share of cost for P.E.R.S. pension on a post-tax basis in the form of a payroll deduction.

13.2 Public Employees’ R
etirement System (P.E.R.S.) Benefits for Unit Employees Hired on or After December 29, 2012

(a) The City amended its contract with P.E.R.S. effective December 28, 2012 to provide a new second tier retirement program of two percent (2%) at sixty (60) with a three (3) year average salary formula and no other additional P.E.R.S benefits for all unit employees hired on or after December 29, 2012.

(b) E mployees hired on or after December 29, 2012 shall pay the entire seven percent (7%) of the employee’s current base salary (as the employee contribution) and any other compensation as qualified by state law towards the P.E.R.S. retirement benefit through a payroll deduction.

13.3 Public Employees’ Retirement System (P.

E.R.S.) Benefits for Employees hired
on or after December 29, 2012

(a) Employees with Reciprocity:

Em
ployees hired on or after December 29, 2012, who had service under another Cal PERS agency or public retirement system with reciprocity prior to January 1, 2013, and a break in service of less than six (6) months and are considered classic employees by P .E.R.S. AB340, shall be subject to the P.E.R.S. pension formula of two ( 2%) at sixty ( 60) with no optional pension enhancements and the other provisions of the retirement tier they EXHIBIT 1
w
ere hired under. Employees hired shall pay the entire seven percent (7%) of the employee’s current base salary (as the employee contribution) and any other compensation as qualified by state law towards Cal PERS retirement benefit through a payroll deduction.
(b) Employees without Reciprocity:

Employees hired on or after January 1, 2013, shall be subject to the P.E.R.S. AB340 pension formula of two percent (2%) at Sixty-two (62) with no optional pension enhancements and the other provisions of the retirement tier they were hired under. Employees shall pay fifty percent (50%) of the City ’s normal cost rate for the two ( 2%) at sixty- two (62) as determined by Cal PERS.

13.4 Un
iforms

(a) The City shall provide uniforms for all employees assigned to this unit who are required to wear uniforms during the course of work.

(b) Safety Protective Footwear Reimbursement Allowance. E ffective July 1,
2024, f or e mployees required to wear safety protective footwear in accordance with the City Manager’s Administrative Directive , HR-34, and approved for safety protective footwear reimbursement, the City will authorize safety protective footwear reimbursement in the amount of t wo hundred fifty dollars ($250.00) per fiscal year. Employees shall be allowed to use any unused funds towards the purchase of insoles and socks.

13.5 P
reventive Shots

Those employees in the Municipal Utilities Department (MUD) whose work assignments involve potential exposure to hazardous wastewater shall, at the employee's option, be provided all necessary medical immunization available for the prevention of job incurred illness.

13.6 S
pecial Driver's License Pay

Job classifications requiring a Class A and/or Class B Driver's License or Hazmat endorsement will receive special pay equal to one and one- half percent (1-1/2%) of top step of job classification.

Special Driver's License Pay will only be implemented with the concurrent implementation of the Operating Engineers' Local No. 3 - City of Stockton, Drug/Alcohol Safety Program.

EXHIBIT 1

13.7 Longevity Pay

Effective June 20, 2011, longevity pay shall be eliminated. However, the City shall grandfather only those employees who complete twelve (12) continuous years of service with the City as of June 30, 2012, with two and one-half percent (2-1/2%) of top salary step of the employee’s pay range to the employee as a longevity incentive pay allowance. As of July 1, 2012, longevity incentive pay allowance for these grandfathered employees shall be reduced to one and one- half percent (1- 1/2%).

13.8 Credit Union

The City will accommodate payroll dedu ctions to Operating Engineers' Local No. 3 Credit Union, within the limitations of City payroll system. Any modification costs will be borne by Operating Engineers' Local No. 3.

13.9 E
ducation, Training and Development

The City will provide internal an d external training programs on a wide variety of subjects. Employee participation will be based on subject matter relevance to job requirements, budgetary constraints and workload demands. Any Training programs that employees are directed or authorized to participate by their department will be fully paid for by the department. Costs paid by the City include tuition, registration fees, related materials, and mileage/meal reimbursement if the training is not located on City premises.

13.10 C
ertification, Certification Training and Special Certifications

(a) Certification dues or fees required of employees in their specialized fields of work will be reimbursed by the City at the actual costs. Pre- approved training(s) to maintain a job-related certification will be paid at one-hundred percent (100%) by the City. The City will pay for two (2) attempts at passing the test.

(b) The City will offer a one-time add pay off the salary line for employees who receive State certification for water, wastewater, distribution, or California Water Environment Association (“ CWEA”). All employees are eligible to obtain certification in Water and Wastewater.

Water,
Wastewater

Water Distribution

CWEA
One Time
Add Pay
Grade 5 Grade 4 and 5 Grade 4 $1,000.00
EXHIBIT 1
Grade 4 Grade 3 $750.00
Grade 2 $200.00
Grade 1 $150.00

Any employee who loses or is denied a certification shall notify their supervisor within seven (7) calendar days, and shall submit a copy of any notice received from the state or any other agency.

(c) An employee assigned to the wastewater function in the operator series who receives and maintains a level 4 or 5 Wastewater Operator Certification will receive th e following quarterly amounts added to their monthly paychecks for each wastewater grade level certification above a grade 3 certification that exceeds the certification level required for the position held.

Any employee receiving such certification pay will perform duties authorized by such certification level as required when necessary due to operational needs.

One level above MQ $1,000.00
Two levels above MQ $2,000.00

(d) Effective upon the first full pay period following ratification of this MOU by the Union and approval by the City Council in 2023, an employee assigned to the Water Treatment or Distribution function in the operator ser ies who receives and maintains a level 4 or 5 Water Operator Certification (T or D) will receive the following quarterly amounts added to their bi -monthly paychecks for each grade level certification above a grade 3 certification that exceeds the certification level required for the position held. Any employee receiving such certification pay will perform duties authorized by such certification level as required when necessary due to operational needs.

One level above MQ $1,000.00
Two levels above MQ $2,000.00

Any current employee who is receiving this certification pay who does not meet the requirement of being within the operator series of classifications shall be EXHIBIT 1
gr
andfathered in to continue receiving such add pay as long as other requirements are met as described above. Effective upon the first full pay period following ratification of this MOU by the Union and approval by the City Council on its regular agenda in accordance with the Brown Act no additional employees shall receive this certification pay unless all requirements above are met. In addition, any current employees who are receiving this certification pay based upon a certification level which is required for the position held shall have this certification pay reduced accordingly.

13.11 M
ileage Reimbursement for Private Vehicle Use

13.12 Us
e of City Vehicles

Supervisors who perform emergency response and/or standby call -out duty shall have the option of taking home their assigned City vehicle on a daily basis.

Section 14. Insurance Plans and Retirement Benefits

14.1 R eopener Clause for Health Insurance

(a) The Union agrees at the City’s request, to meet and confer on any changes that are within the mandatory scope of bargaining in any City proposals related to its City sponsored medical plans that may be related to the implementation of the Affordable Care Act (ACA).

(b) The City agrees at the request of the Water Supervisory Unit to meet and confer regarding employer benefits and premium contributions should medical/dental/vision insurance premiums for employee- only, employee plus one (1) dependent or employee plus family increase by more than four percent (4%) in any one (1) plan year.

14.2 H
ealth and Welfare Benefits and Trust Fund Plan

(a) Choice of Health Plans. Employees in this bargaining unit shall have a choice of enrolling themselves and their eligible dependents in any of the City sponsored medical, dental and vision plans or Operating Engineer Health and Welfare Trust Fund Plan ( Anthem Plans A, B, C, and D, and EXHIBIT 1
K
aiser Plans A B, and A+). The City shall offer two (2) or more medical plans to regular status employees.

(b) Eligibility. Employees shall become eligible for Medical, Dental and Vision insurance on the first day of the month following date of hire. An eligible employee and eligible dependent may be enrolled in a City offered medical plan either as a subscriber in a City offered medical plan or, as the dependent spouse/registered domestic partner or another eligible City employee, but not both. If an employee is also eligible to cover their dependent child, the child will be allowed to enroll as a dependent on only one (1) employee plan (i.e., an employee and his or her dependent cannot be covered by more than one City-offered health plan).

1) Effective the first full pay period following ratification of this MOU by the Union and approval by City Council on its regular agenda, the City will contribute:

• Up to $711.00 per month toward the cost of the monthly premium for employee-only medical/dental/vision plan coverage.

• Up to $1,290.00 per month toward the cost of the monthly premium for employee plus one (1) dependent medical/dental/vision plan coverage.

• Up to $1,719.00 per month toward the cost of the monthly premium for employee plus two (2) or more dependents medical/dental/vision plan coverage.

2) Effective July 1, 2024, City shall contribute the following:
• Up to $725.00 per month toward the cost of the monthly premium for employee-only medical/dental/vision plan coverage.
• Up to $1,316.00 per month toward the cost of the monthly premium for employee plus one (1) dependent medical/dental/vision plan coverage.
• Up to $1,753.00 per month toward the cost of the monthly premium for employee plus two (2) or more dependents medical/dental/vision EXHIBIT 1
pl
an coverage.
3) Effective July 1, 2025, City shall contribute the following:
• Up to $740.00 per month toward the cost of the monthly premium for employee-only medical/dental/vision plan coverage.
• Up to $1,342.00 per month toward the cost of the monthly premium for employee plus one (1) dependent medical/dental/vision plan coverage.
• Up to $1,788.00 per month toward the cost of the monthly premium for employee plus two (2) or more dependents medical/dental/vision plan coverage.

These contributions are based on full -time employment; regular part -time employees shall receive a prorated contribution based on their percentage of full-time employment. Insurance plan premiums that exceed the City’s monthly contribution shall be paid by the employee through payroll deductions. The City shall maintain its IRS 125 Plan to allow for employee contributions for medical/vision/dental to be pre-tax premium conversion.

(d) Plan Rules. Employees may insure themselves and their eligible dependents under the medical, vision and dental plans provided by the City, in accordance with the rules and regulations applicable to the selected Plan.

Benefits in the Plan shall be in accordance with the Plan document.

(e) Employees that promote, demote, or transfer from a classification in the Water Supervisors unit to an unrepresented classification shall continue to have the option to retain the Operating Engineers' Local No. 3 Health and Welfare Plan.

(f) Payment of costs for City a dministrative overhead related to Operating Engineer sponsored plans.

The City costs to administer the health plans offered to employees and retirees are incorporated into the monthly rates for City sponsored medical, dental and vision insurance paid by t he City and the plan partic ipants.

Effective upon the first full pay period following ratification of this MOU by the Union and approval by the City Council on its regular agenda in accordance with the Brown Act the City will add to the monthly plan costs EXHIBIT 1
f
or the Operating Engineer sponsored plans offered to employees thos e City administrative overhead costs associated with these plans in addition to the City sponsored plans. Only costs associated with the OE3 plans will be charged to those plans and will be updated each plan year.

14.3 Long Term Disability Insurance

The City shall provide, at no cost to the employee, long term disability insurance coverage. Plan benefits shall be as described in the Plan document, but shall include:

(a) Each disability - sixty- six and two thirds percent (66 2/3%) of salary up to the maximum salary replacement amount as specified in the City’s long term disability plan.

(b) Disability income payments shall commence after a ninety (90) day waiting period and exhaustion of sick leave accruals.

(d) The City shall continue its normal contribution for employee medical premiums during the ninety (90) day waiting period.

14.4 Life Insurance

The City shall provide, at no cost to the employee, a term life and accidental death and dismemberment insurance policy, with a value of fifty thousand dollars ($50,000). In addition, employees shall have the opportunity to purchase additional voluntary life insurance through their union or through the City’s IRS125 vendor.

14.5 S
tate Disability Insurance (SDI)

14.6 H
ealth Reimbursement Account (HRA)
The City will contribute an amount equal to five and one half percent (5. 1/2%) of the employee’s current base salary into an IRS qualified HRA for each employee to use for reimbursement of current and retiree medical cost reimbursement.

EXHIBIT 1
S
ection 15. Salaries

15.1 Salary Rates
(a) Effective the first full pay period following ratification of this MOU by the Water Supervisory Unit and approved by the City Council on its regular agenda, employees will receive a four percent (4%) cost of living adjustment (COLA) to base pay.

(b) Effective July 1, 2024 , employees will receive a three percent ( 3%) COLA to base pay.

(d) Market adjustments will be provided in year two (2) and year three (3) of the contract as follows:

a. First, the total three (3) year COLA shall be deducted from the “median” position in the market.

b. Effective July 1, 2024, classifications will receive a market adjustment of no more than seven percent (7%) as outlined in Appendix A.

c. E ffective July 1, 2025, classifications will receive the remaining percentage to bring the classification to the median of the market as outlined in Appendix A.

d. The 2022 Total Compensation survey prepared by Bryce Consulting made specific recommendations for internal relationships between classifications in the Water Supervisory Unit and employees in the same job family. In the event these internal relationships change, the Parties will consider how to address compaction between those classifications.

(e) Lump Sum Payments

1. Each employee who is employed in the bargaining unit as of July 1, 2024 will receive a two thousand ($2,000) lump sum non- pensionable bonus EXHIBIT 1
(
subject to all applicable withholdings) to be paid by the second scheduled payday in the same month.

15.2 Salary upon Appointment

Except as herein otherwise provided, the entrance salary for a new employee entering the classified service shall be the minimum salary for the class to which appointed. When circumstances warrant, the Director of Human Resources may approve an entrance salary which is more than the minimum salary for the class to which an employee is appointed. Such a salary may not be more than the maximum salary for the class to which that employee is appointed.

15.3 S
alary Equivalents

Any monthly, daily or hourly rate of pay may be converted into an equivalent rate of pay or to any other time bases when, in the judgment of the City Manager, such a conversion is advisable. In determining equivalent amounts on different time bases the City shall provide tables or regulations for the calculation of payment for service of less than full time, and for use in converting monthly salaries to hourly rates, as well as for calculating hourly rates. Overtime rate and premium pay shall be calculated according to the provisions of the FLSA.

15.4 S
alary Step Plan

There shall be six (6) salary steps in each range.

The first step s hall be the minimum rate and shall be the normal hiring rate for the class. (In a case where a person possesses unusual qualifications, the Director of Human Resources may authorize appointment above the first step after receiving the recommendation of the department head. The same provision shall apply to hourly paid and part-time employees.)

If a department head recommends withholding inc
reases to salary steps two (2)
through six (6) because an employee has not achieved the level of performance required, notice must be received by the Human Resources Department at least four (4) weeks in advance of the employee's eligibility date. The affected employee shall be furnished a copy of the department head's recommendation. Failure to EXHIBIT 1
abi
de by the above f our-week limitation shall not automatically cause a step increase to be granted; however, if an employee does not receive notice by the actual anniversary date, the increase shall be automatically granted.

The second step s hall be paid upon the satisfactory completion of six (6) months service at the first step.

The thi
rd step shall be paid upon the satisfactory completion of one (1) year service at the second step.

The fourth step s hall be paid upon the satisfactory completion of one (1) year service at the third.

The fifth step s hall be paid upon the satisfactory completion of one (1) year service at the fourth step and upon written recommendation of the department.

The sixth step shall be paid upon the satisfactory completion of one (1) year service at the fifth step and upon written recommendation of the department head.

Regardless of an employee's length of service, step advancements in any given clas
s may be made upon recommendation of the department head with th e approval of the Director of Human Resources, but not above Step 6 for a given range.

Sal
ary step increases shall be effective the first day of the pay period following appointment or revision. If the date of appointment or revision is the first day of a pay period, salary step increases shall be as of that date.

Salary range adjustments for a classification will not set a new salary anniversary date for employees serving in that classification.

15.5 S
alary Step after Military Leave

15.6 S
alary Step When Salary Range is Increased
EXHIBIT 1

W
henever the monthly schedule of compensation for a class is revised, each incumbent in a position to which the revised schedule applies shall be entitled to the step in the revised range which corresponds to the employee's step held in the previous range, unless otherwise specifically provided for by the Director of Human Resources.

15.7 S
alary Step After Promotion or Demotion

(a) When an employee is promoted from a position in one class to a position in a higher class, and at the time of promotion is receiving base salary equal to, or greater than, the minimum rate for the higher class, that employee shall be entitled to the next step in the base salary of the higher class which is at least five percent (5%) above the employee's current base salary, except that the next step shall not exceed the maximum salary of the higher class. Add pays are not included in the calculation of base salary for purposes of this section. When an employee is pro moted into another bargaining unit, the new bargaining unit’s salary on promotion rules shall apply.

(b) When an employee is demoted, whether such demotion is voluntary or otherwise, that employee's compensation shall be adjusted to the salary prescribed for the class to which demoted.

(1) If the salary of the employee is reduced for cause or disciplinary reasons, the employee shall receive the salary at the same step prior to promotion.

(2) If the salary of the employee is reduced through no fault of the employee (i.e., layoff), the salary at demotion shall be at the nearest lower salary to that which was received prior to the demotion.

15.8 T
ransfer

An employee may be transferred from a class in one depart ment, or to a position of t he same class in another depart ment, or to a comparable class, with the approval of both the employee and Department Heads. In the case of a compa- rable class, the employee must be qualified, as determined by the Director of Human Resources. The Director of Human Resour ces, in making such a determination, must assure that the maximum salary rate for the classes in question must be equal to or less than the employee’s current top step salary, and EXHIBIT 1
s
hall consider, among other things, whether the employee possesses the minimum qualifications for such class, and is able to demonstrate through education, experience, or successful completion of pertinent tests, that they are qualified for the transfer. If the transfer involves a change from the jurisdiction of one appointing authority to another, both must consent thereto.

15.9 S
alary on Reinstatement

If a former employee is reinstated to a position in a lower class, the employee's salary shall be set at the same step previously held, but in th e pay range of the lower classification.

15.10 "
Y" Rate

When an employee's classification is changed to a lower paid classification as the result of a classification study or other action, the employee may be placed on a "Y" rate. A "Y" rate means that the mont hly compensation for the employee shall remain in effect until such time as further changes in the pay range of the new classification exceeds the "Y" rate.

15.11 A
cting Pay

Any employee in this unit who is assigned by a supervisor to work in a higher paid classification for two (2) or more hours in one (1) day, shall receive the rate of pay in the step of the higher classification which would have been received if the employee had been promoted into that classification, or at least five percent (5%) more than the employee's salary in the present classification, whichever is greater.

Out-of-class assignment pay during overtime status will commence at the first hour worked.

15.12 S
pecial Assignment Pay

EXHIBIT 1

15. 13 T emporary Upgrade Pay
Employees who are assigned to temporarily perform the duties of other employees of a higher level classification shall be paid the hourly or daily rate of the classification to which they are temporarily upgraded. To be eligible for temporary upgrade pay, the employee must perform the full scope of duties of the higher classification and must not perform any of the duties of their own job classification while working in the higher level classification.

15.14 Salary Adjustments

15.15 Bi-W
eekly Pay Period
The City and the Union agree to move to bi -weekly pay as soon as it is administratively possible within the City. The parties understand that this may not be administratively possible until the City implements a new payroll system.

15.16 O
ne Time Payment
The City will make a one -time (non-pensionable) payment in the amount of four hundred and fifty dollars ($450.00), subject to applicable withholdings, to Water Supervisory Unit members employed by the city upon adoption of this agreement by City Council. Payment will be processed and paid as soon as administratively possible following adoption of this agreement by the City Council.

EXHIBIT 1
S
ection 16. Severability of Provisions
In the event that any provision of this MOU is declared by a court of competent jurisdiction to be illegal or unenforceable that provision of the MOU shall be null and void but such nullification shall not affect any other provisions of this MOU, all of which other provisions shall remain in full force and effect.

In the event that Federal legislation changes the current applicability of the FLSA , both parties agree to consult and/or confer on the impacts of such legislation to the extent required by law.

Section 17. Past Practices and Existing Mem
oranda of Understanding
Continuance of working conditions and practices not specifically authorized by ordinance or by resolution of the City Council is not guaranteed by this MOU.

This MOU shall supersede all existing Memoranda of Understanding between the City and the Union.

Section 18. Scope of Agreement
Except as otherwise specifically provided herein, this MOU including Appendices “A” and “B”, which are attached to this Agreement and by this reference incorporated herein, and fully and completely incorporates the understanding of the parties hereto and constitutes the sole and entire agreement between the parties on any and all matters subject to meeting and conferring. Neither party shall, during the term of this MOU , demand any change therein nor shall either party be required to negotiate with respect to any matter; provided that nothing herein shall prohibit the parties from changing the terms of this MOU by mutual agreement.

Section 19. Duration of Agreement
This MOU shall be effective the date of execution, through June 30, 2026.

Section 20. Maintenance of Operations/City Rights
(a) It is recognized that the need for continued and uninterrupted operation of City services is of paramount importance. Therefore, the Union and each employee repre- sented thereby agrees that from the date of execution, through exhaustion of the impasse process/mediation/fact finding as set forth in the Employer/Employee Relations EXHIBIT 1
R
esolution, the Union or any person acting in its behalf, or each employee in a classification represented by the Union, shall not cause, authorize, engage in, encourage, or sanction a work stoppage, slowdown, refusal of overtime work, refusal to operate designated equipment (provided such equipment is safe and sound), or picketing, other than informational picketing, against the City or the individual or concerted failure to report for duty or abstinence from the full and faithful performance of the duties of employment, including compliance with the request of another labor organization or bargaining unit to engage in such activity in an attempt to induce a change in wages, hours, and other terms and conditions of employment.

(b) An employee shall not be entitled to any wages or City paid benefits whatsoever if the City Council, by majority vote, determines to its satisfaction, that the employee is, or has, engaged in any activity prohibited by subsection (a) of this section. The City may take other action which it deems appropriate.

(c) If the City Council, by majority vote, determines to its satisfaction, that subsection (a) of this section has been violated by the Union, the City may take such remedial action as it deems appropriate.

(d) The Union recognizes the duty and obligation of its representatives and members to comply with the provisions of this MOU and to make every effort toward inducing all employees in this unit to fully and faithfully perform their duties. In the event of any activity prohibited by subsection (a) hereinabove, the Union agrees to take supererogatory steps necessary to assure compliance with this MOU.

The rights of the City as set forth in Section 5 of Resolution No. 32,538, dated August 4, 1975, are incorporated herein by reference.

Section 21. GPS Devices in City Vehicles
The City retains the right to move forward with its RFP process and install Global Positioning Systems (GPS) in City vehicles used by employees in this unit. The Association agrees to meet and confer with respect to the City’s proposed GPS policy.

EXHIBIT 1
I
N WITNESS WHEREOF this Memorandum of Understanding was ratified by a me
mbership vote of the Association on ____________________ , and by an affirmative vote of the Stockton City Council on __________________ . The parties hereto have executed this Memorandum of Understanding this _________day of _____________.

WATER SUPERVISORY UNIT

Approved as to form:

CITY OF STOCKTON
Operating Engineers’ Local No. 3

By: _______________________

DARREN SEMORE
Business Representative

APPROVED AS TO FORM:

By: _______________________

HARRY BLACK
City Manager

By: _______________________

ROSEMARY RIVAS
Director of Human Resources

By: ________________________

CHARLES SAKAI
Negotiator for the City

Approved as to form:

Lori Asuncion, City Attorney

By: _______________________

MARCI ARREDONDO
Assistant City Attorney

ATTEST:

CITY CLERK

____________________

ELIZA GARZA
City Clerk
EXHIBIT 1
A
ppendix A. Mar ket Adjustments
This page is intentionally left blank

EXHIBIT 1
A
ppendix B. Side-Let ter of Agreement Regarding Transfer of Services Pursuant to the Special Agreement between Operating Engineers’ Local Union No. 3 (“Union”) and the City of Stockton (“City”) dated June 18, 2003, authorized by Stockton City Council Resolution No. 03-0393, adopted on July 8, 2003, regarding the Transfer of Services, the provisions contained in Appendix B, Side- Letter of Agreement, pertains to only the Employees covered by the Special Agreement.

Nothing contained herein prohibits the parties from mutually agreeing to changes, but neither party can be compelled to negotiate and/or agree to any changes to this Appendix B, Side-Letter of Agreement.

Section 1 – Re-em
ployment and Employment

The City shall provide regular full -time employment at the City’s municipal wastewater utility and water utility to all of the employees listed in Agreement electing to accept such employment effective March 1, 2008.

Section 2 – Te
rms and Conditions of Re-employment and Employment

(a) City’s offer of employment and re-employment shall be unconditional, and shall not be subject to other health, competency or other test, fact, or circumstances relating to an individual employee.

(b) All service with OMI/Thames Water will be counted as service with the City.

(c) Waste Water Certification – E
mployees outside of the Waste Water Division who
hold Waste Water II or higher certification and are available for short -term assignment to the waste water facility will receive an additional five percent (5%) of the top step, which shall be PERS reportable earnings. Certification must be kept current. Employees who decline short -term assignments to the waste water facility subject to department guidelines will lose this additional pay.

Section 3 - Def
erred Compensation

The City shall provide, at no cost to the employee, deferred compensation as a supplement to voluntary deferred compensation plans, if any, for which the individual EXHIBIT 1
em
ployee may be eligible. The City shall contribute an amount equal to five and one-half percent (5.5%) of the employee’s current base salary.

Peggy Barnett Occupational Health/Safety Compliance Specialist Jim Butler Senior Plant Maintenance Supervisor
Randy Cornell Collection Systems Supervisor
Larry Huber Laboratory Supervisor

Section 4 - P ublic Agency Retirement System (“PARS”) Supplemental Retirement Plan

The City shall contribute an amount necessary to fund a supplemental retirement benefit for the following employees in Municipal Utilities Department.

Peggy Barnett Occupational Health/Safety Compliance Specialist Jim Butler Senior Plant Maintenance Supervisor
Randy Cornell Collection Systems Supervisor
Larry Huber Laboratory Supervisor
Robert Englent Senior Collection Systems Operator

The supplemental retirement benefit shall be developed and administered by the Public Agency Retirement Services (“PARS”) benefit and shall be based on the following criteria:

(a) Only employees listed in this Agreement shall be eligible to participate;

(b) Commencing March 1, 2008, employees must complete at least one (1) year of continuous City of Stockton service to be eligible for the PARS benefit;

(c) The PARS benefit shall be paid only to those employees listed in this Agreement who retire from the City in accordance with rules and criteria established pursuant to PERS and the MOU in effect between the City and the OE3; and

(d) The benefit level paid to each eligible employee shall be based on the following formula:

(1) All actual years of service (prior City of Stockton, OMI and City of Stockton years of service as of March 1, 2008 prospectively) x 0.6%.

Section 5 – Com
pensation and Benefits

(a) Active employees shall receive fully paid City Health Plan (Medical, Vision, and Dental) or the option of the fully paid OE3 Medical Plan Schedule A (Medical, EXHIBIT 1
V
ision, and Dental) through June 30, 2013. Effective June 30, 2013, employees identified in Exhibit B shall receive the same city contribution towards cost of insurance programs as stated in MOU section 14.1(c).

(b) An employee who receives and maintains a Level IV or V Waste Water Operator Certification will receive the following quarterly amounts added to his or her monthly paychecks for Level V and Level IV certifications, unless certification is required of the position.

Level IV $1,000.00
Level V $2,000.00
EXHIBIT 1
A
ppendix B – Ex hibit B Employees

EXHIBIT 1

A
ppendix B – Ex hibit B Employees

EXHIBIT 1
600‐000 WATER UTILITY FUND 18,859 1,149 16,929 36,937 610‐000
WASTEWATER UTILITY FUND 44,368 3,568 18,322 66,258
620‐000
STORMWATER UTILITY FUND 8,856 736 3,849 13,441
Grand Total
72,083 5,453 39,100 116,636 CITY OF

STOCKTON
EXHIBIT 2
FY 2023‐24 Budget Amendment for MOU Changes Effective 9/16/2023 Fund
Number Fund Name
COLA and Market
Increase Health
Other ‐ One‐
time, Vacation,
Certs. Total
EXHIBIT 2
City of Stockton
Legislation Text
File #: 23-0713, Version: 1

ADOPT A RESOLUTION AUTHORIZING THE PURCHASE OF MEMBRANE FILTERS FROM

FILMTEC CORPORATION FOR THE DELTA WATER TREATMENT PLANT

RECOMMENDATION
It is recommended that the City Council adopt a resolution to:

1. Approve findings pursuant to Stockton Municipal Code Section 3.68.070 for an exception to the competitive bidding process.

2. Authorize a purchase agreement with FilmTec Corporation for membrane filters in the amount of $261,772.50.

It is also recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of this resolution.

Summary
The Delta Water Treatment Plant (DWTP) uses advanced membrane ultra-filtration to provide Stockton residents with high-quality drinking water that meets all State and Federal regulations.

Under normal operations, membrane filter units have a service life of five to ten years. The filter units require replacement to maintain water production operations at the treatment plant. Currently, FilmTec Corporation (formerly Evoqua Water Technologies, Inc.) is the only manufacturer of membrane filter units approved by the State Water Resources Control Board (SWRCB) that are the correct size for the membrane filtration system used at the DWTP.

Staff recommends approval of a purchase agreement with FilmTec Corporation for 408 membrane filter units in the amount of $261,772.50. Upon purchase and delivery, membrane installation will be completed by the Municipal Utilities Department (MUD) staff to ensure the continued production of high-quality drinking water for Stockton residents.

DISCUSSION
Background
The MUD operates and maintains the DWTP. When the DWTP was designed and constructed, advanced membrane ultra-filtration was installed in the treatment process to provide Stockton residents with high-quality drinking water that meets all State and Federal regulations. The membrane filtration system uses filter units that have a finite service life of five to ten years and require replacement under a regular maintenance program. If the filters are not replaced under the City of Stockton Printed on 9/6/2023Page 1 of 3
powered by Legistar™
File #: 23-0713, Version: 1
maintenance program, drinking water quality may fail to meet State and Federal standards, and the DWTP may need to stop production.

On December 31, 2019, the Memcor membrane product line was purchased from Evoqua Water Technologies LLC by DuPont de Nemours Inc. (DuPont) and is now operating under the DuPont FilmTec Corporation business unit. The contracts issued for the supply of Memcor membranes were transferred with the sale of the Memcor product line to FilmTec Corporation, including all bonds and insurance certificates. The Memcor business line is 100 percent owned by FilmTec Corporation.

Present Situation
In 2014, Evoqua Water Technologies, Inc. (FilmTec Corporation) supplied new membrane filters for the ten-skid membrane filtration system at the DWTP. These filter units have a finite service life of five to ten years and require replacement to ensure the membrane filtration system continues to perform as designed by the manufacturer. To make certain the filter units are replaced before the end of service life, the MUD developed a maintenance program to replace a membrane skids each year.

There are approximately 200 filter units per membrane filter skid. This ongoing maintenance program will ensure the membrane filtration system is properly maintained and operated into the future.

The use of membrane filter technology is required to be approved by the SWRCB. FilmTec Corporation is currently the only approved manufacturer of membrane filters for water treatment by the SWRCB. In addition, this manufacturer has the correct type and size membranes designed for installation at the DWTP.

Staff recommends the City Council approve a purchase agreement for 208 membrane filter units from FilmTec Corporation to service one membrane filter skid. FilmTec Corporation will provide free shipping for the filters. The cost of the filter units is $261,772.50 including tax (Exhibit 1 to the Resolution).

Findings
Stockton Municipal Code Section 3.68.070(A)(4) provides an exception to the competitive bidding requirements for purchases exceeding $100,000 when City Council approves findings that support and justify the purchase.

Proposed findings to support a sole-source purchase are:

1. There are no other alternative membrane filter units that meet National Sanitation Foundation standards that have been approved by the SWRCB and are the correct type and size for the DWTP membrane filter skid.

2. Membrane filter replacement is a standard maintenance practice required to preserve the quality of the filtration treatment process and the production of high-quality drinking water. If the filter units are not replaced before the end of service life, the City’s water production may fail to meet state and federal standards.

3. Maintaining the drinking water production system with the current type of membranes is more cost-effective than replacing them with a different filtration system, due to the supporting City of Stockton Printed on 9/6/2023Page 2 of 3
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File #: 23-0713, Version: 1
infrastructure, piping, structures, connections, electrical, tooling, and instrumentation in place for the existing membrane filtration system. Therefore, using the current type of membranes is in the public’s best interest.

4. The membrane filtration system warranty covers material costs for repairs due to defective membrane filters. The use of any membrane filter not supplied by FilmTec Corporation will void the existing warranty.

Staff recommends the City Council approve these findings as an exception to the competitive bidding process and authorize the purchase of 208 membrane filter units from FilmTec Corporation in the amount of $261,772.50.

FINANCIAL SUMMARY
The cost of the FilmTec Corporation filters is $261,772.50. The FY 2023-24 Annual Budget includes appropriation to cover the purchase and delivery of membrane filters in the Water Utility Fund, Buildings and Structures account.

There is no impact to the General Fund or any other unrestricted fund from this action.

City of Stockton Printed on 9/6/2023Page 3 of 3
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Resolution No.

STOCKTON CITY COUNCIL

RESOLUTION AUTHORIZING THE PURCHASE OF MEMBRANE FILTERS FROM

FILMTEC CORPORATION FOR THE DELTA WATER TREATMENT PLANT

The water treatment process at the Delta Water Treatment Plant (DWTP) was designed and constructed with advanced membrane ultra-filtration to provide high-quality drinking water for Stockton’s residents and to meet all State and Federal regulations; and

Membrane filter unit replacement every five to ten years is part of the regular maintenance program required to keep the treatment plant in operation; and

On December 31, 2019, the Memcor product line was purchased from Evoqua Water Technologies LLC by DuPont de Nemours Inc. (DuPont) and is now operating under DuPont’s FilmTec Corporation business unit; and

FilmTec Corporation is currently the only approved manufacturer of membrane filters for water treatment by the State Water Resources Control Board (SWRCB) that are the correct type and size membranes for the DWTP; and

Staff recommends the purchase of filter units for one membrane skid from FilmTec Corporation for $261,772.50. Installation of the filter units will be completed by the MUD staff; now, therefore,

BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF STOCKTON, AS FOLLOWS:

1. The City Council hereby approves the following findings which support and justify an exception to the competitive bidding process pursuant to Stockton Municipal Code Section 3.68.070:

a. There are no other alternative membrane filter units that meet National Sanitation Foundation standards that have been approved by the SWRCB and are the correct type and size for the DWTP membrane filter skid. b. Membrane filter replacement is a standard maintenance practice required to preserve the quality of the filtration treatment process and the production of high-quality drinking water. If the filter units are not replaced before the end of service life, the City’s water production may fail to meet state and federal standards.

c. Maintaining the drinking water production system with the current type of membranes is more cost -effective than replacing them with a different filtration system, due to the supporting infrastructure, piping, structures, connections, electrical, tooling, and instrumentation in place for the existing membrane filtration system. Therefore, using the current type of membranes is in the public’s best interest.
d. The membrane filtration system warranty covers material costs for repairs due to defective membrane filters. The use o f any membrane filter not supplied by FilmTec Corporation will void the existing warranty.

2. The City Council a uthorizes the execution of a purchase agreement for membrane filters from FilmTec Corporation (formerly Evoqua Water Technologies, Inc .) quoted in the amount of $ 261,772.50, a copy of which is attached as Exhibit 1 and incorporated by this reference.

3. The City Manager or designee is authorized to take whatever actions are necessary and appropriate to carry out the purpose and intent of this Resolution.

PASSED, APPROVED, and ADOPTED September 12, 2023 .

KEVIN J. LINCOLN II
Mayor of the City of Stockton
ATTEST:

ELIZA R. GARZA, CMC
City Clerk of the City of Stockton

Valid from: 06/27/2023
Valid to: 12/31/2023
10 12038353 208 1,040.00 216,320.00
MODULE, SPARE L20N PVDF EA USD / EA USD
Energy Surcharge% 3.000 % 6,489.60
USD
Confirm Date Quantity
06/27/2023 208 EA

FILMTEC CORPORATION

CITY OF STOCKTON DELTA WATER SUPPLY

PROJECT
c/o CITY OF STOCKTON
11373 N LOWER SACRAMENTO RD
LODI CA 95242-9545
Carrier / Drayage
Item # Goods Description Quantity Unit Price Amount
Shipping Marks
Forwarding Agent/Notify Party/End User
Document Date Order Number
06/27/2023 41166193
Customer P.O. number
06272023 06/27/2023
Country Shipped From Country of Destination
United States United States
Transport Mode Shipping Point
5400 DEWEY HILL RD
EDINA MN 55439-2085

UNITED STATES

INFORMATION

MARLBOROUGH VIRT
0014 WS
Ship-to / Consignee 11005462

CITY OF STOCKTON DELTA WATER SUPPLY

PROJECT
c/o CITY OF STOCKTON
11373 N LOWER SACRAMENTO RD
LODI CA 95242-9545
Sold-to 11005462
QUOTATION Page 1 of 5
Terms of Delivery and Payment
PPD Destination
NET 30 DAYS FROM INVOICE DATE
Unloading Point
EXHIBIT 1
20 12032210 832 2.00 1,664.00
O-RING, EPDM 9710 BS359 WRC BLUE DOT; EA USD / EA USD
Energy Surcharge% 3.000 % 49.92
USD
Confirm Date Quantity
06/27/2023 832 EA
30 12037213 832 2.00 1,664.00
O-RING, EPDM 9710 52.1X5.7MM BLUE DOT EA USD / EA USD
Energy Surcharge% 3.000 % 49.92
USD
Confirm Date Quantity
06/27/2023 832 EA
40 12032217 832 0.30 249.60
O-RING, EPDM 9710 BS114 WRC BLUE DOT; EA USD / EA USD
Energy Surcharge% 3.000 % 7.49
USD
Confirm Date Quantity
06/27/2023 832 EA

FILMTEC CORPORATION
Item # Goods Description Quantity Unit Price Amount
Shipping Marks
Document Date Order Number
06/27/2023 41166193
Customer P.O. number
06272023 06/27/2023
5400 DEWEY HILL RD
EDINA MN 55439-2085

UNITED STATES
QUOTATION Page 2 of 5
EXHIBIT 1
50 12036761 416 1.00 416.00
O-RING, VTN FKM 6741 BS211; EA USD / EA USD
Energy Surcharge% 3.000 % 12.48
USD
Confirm Date Quantity
06/27/2023 416 EA
60 12032211 832 2.00 1,664.00
O-RING, EPDM 9710 BS354 WRC BLUE DOT; EA USD / EA USD
Energy Surcharge% 3.000 % 49.92
USD
Confirm Date Quantity
06/27/2023 832 EA
70 12035217 3 125.00 375.00
GREASE, SILICON MX22 (2X 0.5KG); KG USD / KG USD
Energy Surcharge% 3.000 % 11.25
USD
Freight Surcharge 15,000.00
Confirm Date Quantity
06/27/2023 3 KG

UNITED STATES
QUOTATION Page 3 of 5
EXHIBIT 1
_____________________________________________
Subtotal 244,023.18

6.00 % Sales Tax (State) 13,741.42
.

1.25 % Sales Tax (Local) 2,862.78
.

0.50 % Sales Tax (Local) 1,145.12
.

Total 261,772.50
USD
_____________________________________________
INFORMATION:

Att: Elvis Magana @ 209-937-5725

FILMTEC CORPORATION
Item # Goods Description Quantity Unit Price Amount
Shipping Marks
CONTACT: John Shibilski [email protected]
Ph.: Fax:

Document Date Order Number
06/27/2023 41166193
Customer P.O. number
06272023 06/27/2023
5400 DEWEY HILL RD
EDINA MN 55439-2085

UNITED STATES
QUOTATION Page 4 of 5
EXHIBIT 1

FILMTEC CORPORATION

STANDARD CONDITIONS OF SALE

1. Seller warrants only that (a) any products or services provided hereunder meet Seller's standard specifications for the same or such other specifications as may have been expressly agreed to herein; (b) the sale of any products or services provided hereunder will not infringe the claims of any validly issued United States patent covering such product or service itself, but does not warrant against infringement by reason of (i) the use of any information provided, (ii) the use of any product or service in combination with other products, services, or information or in the operation of any process, or (iii) the compliance by Seller with any specifications provided to Seller by Buyer; and (c) all products provided hereunder were produced in compliance with the requirements of the Fair Labor standards Act of 1938, as amended. WITH RESPECT TO ANY PRODUCTS, SERVICES, OR INFORMATION PROVIDED TO BUYER, SELLER MAKES NO WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, OR ANY OTHER EXPRESS OR IMPLIED WARRANTY. Buyer assumes all risk and liability resulting from use of the products, services, or information delivered hereunder, whether used singly or in combination with other products, services, or information.

2. IN NO EVENT WILL SELLER'S AGGREGATE LIABILITY TO BUYER FOR ALL DAMAGES ARISING FROM ANY AND ALL CLAIMS RELATED TO THE BREACH OF THIS AGREEMENT,

NONDELIVERY, OR THE PROVISION OF ANY PRODUCT, SERVICE, OR INFORMATION COVERED BY THIS AGREEMENT, REGARDLESS OF WHETHER THE FORM OF ACTION IS BASED

ON CONTRACT, TORT (INCLUDING NEGLIGENCE), STRICT LIABILITY, STATUTE, OR OTHERWISE, EXCEED THE TOTAL PRICE PAID BY BUYER TO SELLER FOR THE PRODUCTS, SERVICES, OR INFORMATION IN RESPECT OF WHICH DAMAGES ARE CLAIMED. NO CLAIM SHALL BE ALLOWED FOR PRODUCT THAT HAS BEEN PROCESSED IN ANY MANNER.

FAILURE TO GIVE NOTICE OF A CLAIM WITHIN NINETY (90) DAYS FROM DATE OF DELIVERY, OR THE DATE FIXED FOR DELIVERY (IN CASE OF NONDELIVERY) SHALL CONSTITUTE A WAIVER BY BUYER OF ALL CLAIMS IN RESPECT OF SUCH PRODUCTS, SERVICES, OR INFORMATION. PRODUCTS SHALL NOT BE RETURNED TO SELLER WITHOUT SELLER'S PRIOR WRITTEN PERMISSION. NO CHARGE OR EXPENSE INCIDENT TO ANY CLAIMS WILL BE ALLOWED UNLESS APPROVED BY AN AUTHORIZED REPRESENTATIVE OF SELLER. IN

ADDITION, AND TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, EACH PARTY HERETO WAIVES ANY CLAIM TO INDIRECT, CONSEQUENTIAL, PUNITIVE, EXEMPLARY OR MULTIPLIED DAMAGES ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE PROVISION OF ANY PRODUCT, SERVICE, OR INFORMATION. TO THE EXTENT PERMITTED BY

APPLICABLE LAW, THE PARTIES WAIVE AND AGREE NOT TO ASSERT NON-CONTRACTUAL CLAIMS ARISING UNDER STATE LAW RELATING TO THIS AGREEMENT OR THE PROVISION

OF ANY PRODUCT, SERVICE, OR INFORMATION COVERED BY THIS AGREEMENT, AND THIS AGREEMENT SHALL BE DEEMED TO INCLUDE SUCH LANGUAGE AS MAY BE REQUIRED TO EFFECT SUCH WAIVER. WAIVER BY EITHER PARTY OF ANY DEFAULT BY THE OTHER HEREUNDER SHALL NOT BE DEEMED A WAIVER BY SUCH PARTY OF ANY DEFAULT BY THE OTHER WHICH MAY THEREAFTER OCCUR.

3. No liability shall result from delay in performance or nonperformance, directly or indirectly caused by circumstances beyond the control of the party affected, including, but not limited to, act of God, fire, explosion, flood, war, act of or authorized by any Government, accident, labor trouble or shortage, pandemic, inability to obtain material, equipment or transportation, failure to obtain or hardship in obtaining reasonably priced supplies of materials, or failure of usual transportation mode. Quantities so affected may be eliminated from the agreement without liability, but the agreement shall remain otherwise unaffected. Seller shall have no obligation to purchase supplies of the product specified herein to enable it to perform this Agreement.

4. If for any reason including but not limited to Force Majeure Seller is unable to supply the total demand for products specified herein, Seller may distribute its available supply among any or all purchasers, as well as departments and divisions of Seller, on such basis as it may deem fair and practical, without liability for any failure of performance which may result therefrom.

5. Seller may furnish such technical assistance and information as it has available with respect to the use of the products or services covered by this agreement. Unless otherwise agreed in writing, all such information will be provided gratis. Buyer agrees to evaluate such information, to make an independent decision regarding the suitability of such information, products and services for Buyer's application, and only use such products, services and information pursuant to then current good product stewardship principles and all regulatory requirements applicable to Buyer's business.

6. Buyer acknowledges that it has received and is familiar with Seller's labeling and literature concerning the products and its properties. Buyer will forward such information to its employees, contractors and customers who may distribute, handle, process, sell or use such products, and advise such parties to familiarize themselves with such information. Buyer agrees that products sold hereunder will not knowingly be resold or given in sample form to persons using or proposing to use the products for purposes contrary to recommendations given by Seller or prohibited by law, but will be sold or given as samples only to persons who can handle, use and dispose of the products safely. Unless agreed to by Seller in a written agreement covering such use, in no event shall Buyer use products or resell products for use in the manufacture of any implanted medical device. Buyer agrees that export of any product, service or information provided hereunder shall be in accordance with applicable Export Administration Regulations.

7. Except as may be contained in a separate trademark license, the sale of product (even if accompanied by documents using a trademark or trade name of Seller) does not convey a license, express or implied, to use any trademark or trade name of Seller, and Buyer shall not use any trademark or trade name of Seller in the conduct of its business without Seller's prior written consent.

8. The Buyer shall reimburse the Seller for all taxes, (excluding income taxes) excises or other charges which the Seller may be required to pay to any Government (National, State or Local) upon the sale, production or transportation of the products, services, or information sold hereunder.

9. In the event Buyer fails to fulfill Seller's terms of payment, or in case Seller shall have any doubt any time as to Buyer's financial responsibility, Seller may decline to make further deliveries except upon receipt of cash or satisfactory security.

10. This agreement is not assignable or transferable by Buyer, in whole or in part, except with the prior written consent of Seller. Seller reserves the right to sell, assign, or otherwise transfer its right to receive payment under this agreement.

11. Dispute Resolution and Arbitration - Buyer and Seller agree to arbitrate all disputes, claims or controversies whether based on contract, tort, statute, or any other legal or equitable theory, arising out of or relating to (a) this Agreement or the relationship which results from this Agreement, (b) the breach, termination or validity of this Agreement, (c) the purchase or supply of any product, service, or information provided by Seller, (d) events leading up to the formation of Buyer's and Seller's relationship, and (e) any issue related to the creation of this Agreement or its scope, including the scope and validity of this paragraph. The parties shall before and as a condition to proceeding to arbitration attempt in good faith to resolve any such claim or controversy by mediation under the International Institute for Conflict Prevention & Resolution ("CPR") Mediation Procedure then currently in effect. Unless the parties agree otherwise, the mediator will be selected from the CPR Panels of Distinguished Neutrals. Any such claim or controversy which remains unresolved 60 days after the appointment of a mediator or 60 days after good faith efforts by either party to proceed to mediation shall be finally resolved by binding arbitration in accordance with the CPR Rules for Non-Administered Arbitration then currently in effect by three independent and impartial arbitrators, none of whom shall be appointed by either party. This Agreement shall be governed by the Federal Arbitration Act, 9 U.S.C. §§ 1-16, to the exclusion of any state laws inconsistent therewith. Such arbitration shall be conducted in a city to be chosen by the arbitrators which is not the principal place of business of either party, and the arbitrators and the parties shall conduct such arbitration in accordance with such procedures as may be necessary to permit use of the then current CPR Arbitration Appeal Procedure. Any judgment upon the award rendered by the arbitrator(s) may be entered by any court having jurisdiction thereof. In the event that either party wishes to appeal an award, the parties shall follow the then current CPR Arbitration Appeal Procedure. Buyer and Seller agree not to file or join any class action or class arbitration, seek or consent to class relief, or seek or consent to the consolidation or joinder of its claims with those of any third party. If any clause within this Arbitration Provision (other than the agreement regarding the conduct of the arbitration in the preceding sentence) is found to be illegal or unenforceable, that clause will be severed from this Arbitration Provision, and the remainder of the Arbitration Provision will be given full force and effect. If such agreement regarding the conduct of the arbitration is found to be illegal or unenforceable and if the arbitrators permit a class arbitration or consolidated or joined matter to proceed, this entire Arbitration Provision will be unenforceable, and the dispute may be decided by a court. The obligations set forth in this paragraph shall survive the termination or expiration of this Agreement.

12. In addition to these Standard Conditions of Sale, any Special Conditions of Sale set forth on this invoice or in the current price list for the products or services sold hereunder shall apply and are incorporated by reference. Unless otherwise specified therein, title, liability for and risk of loss to Product sold hereunder passes to Buyer upon loading for shipment at Seller's producing location.

13. This Agreement shall be construed and governed by Delaware law, without regard to any applicable conflicts of law provisions, and the terms of the UCC, rather than the United Nations Convention on Contracts for the International Sale of Goods, shall apply.

14. Except as expressly provided in any other term or condition of this Agreement, any provision hereof which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective only to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof or affecting the validity or enforceability of such provision in any other jurisdiction.

15. As part of the sale of goods hereunder, Seller may collect, use and disclose Personal Information about Buyer including company name, address, banking and credit information as well as name, phone number, email address and other contact details of natural persons within Buyer's organization and Buyer's contractors. Seller may share Personal Information with its affiliates and selected third parties around the world in order to complete the sale of goods, as described in Seller's privacy statement. https://www.dupont.com/privacy.html

16. This Agreement supersedes all prior agreements, representations and understandings between the parties (whether written or oral) with respect to its subject matter and constitutes (along with the exhibits and schedules attached hereto) a complete and exclusive statement of the terms of the agreement between the parties with respect to the provision of products or services hereunder. Not by way of limitation of the unqualified nature of the foregoing, Buyer acknowledges, agrees and represents that it is not relying upon, and it has not been induced by, any representation, warranty, statement made by, or other information provided by Seller in connection with its decision to purchase or use any product, service, information or technology, other than the representations and warranties Seller as and only to the extent expressly provided in this Agreement. No modification of this Agreement shall be binding upon Seller unless separately contracted in writing and executed by a duly authorized representative of Seller. No modification shall be effected by the acknowledgment or acceptance of purchase order forms stipulating different conditions. Unless Buyer shall notify Seller in writing to the contrary as soon as practicable after receipt of this invoice by Buyer, Buyer shall be deemed to have accepted the terms and conditions hereof and, in the absence of such notification, Buyer's acceptance or use of the products, services, information or technology shall be equivalent to Buyer's assent to the terms and conditions hereof.

Ver. 3/5/07
Document Date Order Number
06/27/2023 41166193
Customer P.O. number
06272023 06/27/2023
5400 DEWEY HILL RD
EDINA MN 55439-2085

UNITED STATES
QUOTATION Page 5 of 5
EXHIBIT 1
City of Stockton
Legislation Text
File #: 23-0746, Version: 1

ADOPT A RESOLUTION AUTHORIZING A CONTRACT EXTENSION FOR PROFESSIONAL STAFFING SERVICES FROM WATERTALENT, LLC. AND AMEND THE FISCAL YEAR 2023-24

ANNUAL BUDGET

RECOMMENDATION
It is recommended that the City Council adopt a resolution to:

1. Approve findings pursuant to Stockton Municipal Code Section 3.68.070 in support of an exception to the competitive bidding process.

2. Authorize the City Manager to execute a five (5) year contract extension with waterTALENT, LLC. for a not-to-exceed amount of $1,599,500.

It is also recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of the resolution.

Summary
In 2019, the Municipal Utilities Department (MUD) contracted with waterTALENT, LLC. (waterTALENT) for professional staffing services for water and wastewater operators. This firm possesses the expertise to recruit and deploy licensed operations staff within twenty-four (24) hours in the event of sudden or temporary staff shortages. In 2020, the COVID-19 pandemic triggered job loss nationwide and the effects are still present. While the MUD weathered the pandemic, hiring state-certified operators has been difficult with fewer available applicants and greater competition for these qualified operators. Operator staff shortages continue to impact MUD operations, including the recent retirement of the Grade 5 Chief Plant Operator at the Regional Wastewater Control Facility.

Without these services, the MUD will have difficulty maintaining adequate staffing levels to meet State and Federal operation requirements.

If approved, Amendment No. 5 will extend the waterTALENT contract for 5 (five) years through June 30, 2029 and add $1,500,000 to the contract amount to fund the added 5-year term, increasing the total contract amount to $1,599,500. Staff is also requesting an appropriation of $250,000 for FY 2023-24 to adequately fund temporary staffing of a Grade 5 operator while permanent staffing is recruited.

City of Stockton Printed on 9/6/2023Page 1 of 3
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File #: 23-0746, Version: 1

DISCUSSION
Background
The MUD operates the Regional Wastewater Control Facility (RWCF), which is a Class 5 publicly owned treatment works. The facility is regulated through the National Pollutant Discharge Elimination System (NPDES) permit through the Environmental Protection Agency. A Class 5 facility is required to have a Grade 5 certified operator in responsible charge.

The MUD also operates the Delta Water Treatment Plant (DWTP), under a permit regulated by the State Water Resources Control Board, for a T5 drinking water treatment facility and requires a T5 certified operator in responsible charge. For the City’s Water Distribution System, it requires a D5 certified operator to be in responsible charge. All other staff who operate the RWCF, the DWTP, and the water distribution system are required to be properly certified.

In 2019, the MUD contracted with waterTALENT of Sherman Oaks, CA, for professional staffing services for water and wastewater operators for $74,500. This firm has the expertise to recruit and deploy temporary licensed operations staff within twenty-four (24) hours. The contract was issued as a stop-gap measure in the event staff vacancies of certified operators could not be filled timely, leaving the RWCF or DWTP unable to adequately staff work shifts. COVID impacted the MUDs ability to maintain adequate staffing levels at both the RWCF and DWTP. In 2020, Amendment No. 1 was executed extending the contract for one year with no additional funds added. In 2021, Amendment No. 2 extended the contract term through June 30, 2024. It was not until 2023 when significant staffing shortages required the use of these services for both the wastewater and water divisions. In May 2023, Amendment No. 3 was executed to include additional staffing levels to the contract to meet the needs of the DWTP. In the same month, Amendment No. 4 was executed to add funds to the contract, revising the contract total to $99,500. Amendments 1 through 4 extended the contract term to 5 years and increased the total amount to $99,500, all of which was within the City Manager’s authority for approval. Requested Amendment No. 5 exceeds the City Manager’s authority, requiring City Council approval.

Present Situation
The MUD has had several operator vacancies for an extended period of time, although recruitments have been advertised for entry-level and senior plant operators for the RWCF and DWTP. On- boarding entry-level plant operators can take up to one year to obtain the necessary operations training and advanced certifications. The low recruitment responses and time to on-board have made it necessary to retain the ability to access certified contract operators for water treatment, distribution, and wastewater treatment to backfill staff shortages. This is needed to ensure appropriate staffing for uninterrupted treatment and distribution of drinking water to City residents and continuous collection and treatment of wastewater while maintaining compliance with various permit requirements.

The requested Amendment No. 5 will extend the current contract with waterTALENT for another 5 years. It will also add an additional $1,500,000 funding for the 5-year period to bring the total contract amount to $1,599,500.

While operator vacancies continue at the RWCF and DWTP, the RWCF has an urgent need for a certified Grade 5 Operator while the vacant Chief Plant Operator position is filled. The estimated City of Stockton Printed on 9/6/2023Page 2 of 3
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File #: 23-0746, Version: 1
weekly cost for a Grade 5 Operator is $9,000. Funds were not budgeted in FY 2023-24 to support this level of staffing and cost. An appropriation of $250,000 is requested to adequately fund the contract to support staff needs through the end of FY 2023-24.

Findings
Stockton Municipal Code Section 3.68.070(A)(5) provides an exception to the competitive bidding requirements when the City Council approves findings that support an exception to the competitive bidding process. Proposed findings to support this purchase are:

1. The MUD is required to have certified operators for operating the equipment used to treat and discharge wastewater and to treat and distribute potable drinking water.

2. Lack of operators on staff has the potential to violate the NPDES or Water Supply permits.

3. Additional services, such as process control experts, may be needed in the future as the RWCF Plant Modification is completed and operations are turned over to the MUD.

4. The waterTALENT firm has provided operational staffing services to the City, is familiar with the City’s specific certification requirements at the RWCF and DWTP, and has guaranteed a 24-hour response time with qualified staff.

5. It is in the City’s best interest to maintain temporary operator staffing services to ensure continued permit compliance and adequate staffing levels.

FINANCIAL SUMMARY
This work was funded in Fiscal Year (FY) 2023-24 for $20,000, which did not account for the cost of staffing a Grade 5 Operator. A budget appropriation in Fiscal Year 2023-24 is requested for $200,000 from the Wastewater Utility Fund Balance account to the Wastewater Treatment Plant Operations, Special Services account and $50,000 from the Water Utility Fund Balance account to the Water Treatment Plant Operations, Special Services account.

With this new appropriation, the FY 2023-24 Annual Budget will include sufficient funds for the additional cost for a Grade 5 Chief Plant Operator at the RWCF. Costs for the subsequent years will be budgeted in the same account and subject to Council approval during the annual budget development process.

There is no impact to the General Fund, or any other unrestricted funds, from this action.

City of Stockton Printed on 9/6/2023Page 3 of 3
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Resolution No.

STOCKTON CITY COUNCIL

RESOLUTION AUTHORIZING A CONTRACT EXTENSION FOR PROFESSIONAL STAFFING SERVICES FROM WATERTALENT, LLC. AND AMEND ING THE FISCAL YEAR 2023-24 ANNUAL BUDGET

In 2019, the Municipal Utilities Department (MUD) contracted with waterTALENT, LLC (waterTALENT) for temporary staffing services for water and wastewater operators.

The firm possesses the expertise to recruit and deploy licensed operations staff within twenty-four (24) hours in the event of sudden or temporary staff shortages; and

In 2020, the COVID-19 pandemic triggered job loss nationwide and the effects are still present. While the MUD weathered the pandemic, hiring qualified operators and staff has been difficult with fewer applicants than in previous years. Staffing shortages continue to impact operations at both the Regional Wastewater Control Facility (RWCF) and the Delta Water Treatment Plant (DWTP); and

The MUD has experienced ongoing operator vacancies despite recruitment efforts and ha s an urgent need for temporary staffing of a Grade 5 Operator following the retirement of the RWCF Chief Plant Operator; and

On-boarding entry -level plant operators can take up to a year to obtain the necessary operations training and advanced certifica tions. The low recruitment responses and time to on-board have made it necessary to retain the option for temporary staffing to ensure treatment operations are appropriately staffed for safety and permit compliance; and

Without these services, the MUD will be unable to meet requirements in the National Pollutant Discharge Elimination System Permit or the Domestic Water Supply Permit; and

Additional appropriation from the wastewater and water fund balance s are necessary to ensure there is sufficient budget in FY 2023-24 for the proposed additional cost for temporary staffing services; now, therefore,

BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF STOCKTON, AS FOLLOWS:

1. The City Council approves findings pursuant to Stockton Municipal Code section 3.68.070(A)(5) in support of an exception to the competitive bidding process for the contract extension with waterTALENT:

a. The MUD is required to have certified operators for operating the equipment used to treat and discharge wastewater and to treat and distribute potable drinking water.

b. Lack of operators on staff has the potential to violate the NPDES or Water Supply permits.

c. Additional services, such as process control experts, may be needed in the future as the RWCF Plant Modification is completed and operations are turned over to the MUD.

d. The waterTALENT firm has provided operational staffing services to the City , is familiar with the City’s specific certification requirements at the RWCF and DWTP, and has guaranteed a 24-hour response time with qualified staff.

e. It is in the City’s best interest to maintain temporary operator staffing services to ensure continued permit compliance and adequate staffing levels.

2. The City Council authorizes the City Manager to execute a five-year contract extension with waterTALENT, LLC of Sherman Oaks, California, amending the total not-to-exceed amount to $1,599,500 (Exhibit 1 to the Resolution).

3. The City Manager or designee is hereby authorized to amend the FY 2023-24 Annual Budget to appropriate $ 200,000 from the Wastewater Utility Fund Balance to the Wastewater Treatment Plant Operations, Special Services account and $50,000 from the Water Utility Fund Balance to the Water Treatment Plant Operations, Special Services account.

4. The City Manager or designee is hereby authorized to take appropriate and necessary actions to carry out the purpose and intent of this Resolution.

PASSED, APPROVED, and ADOPTED September 12, 2023 .

KEVIN J. LINCOLN II
Mayor of the City of Stockton
ATTEST:

ELIZA R. GARZA, CMC
City Clerk of the City of Stockton

EXHIBIT 1
City of Stockton
Legislation Text
File #: 23-0749, Version: 1

AUTHORIZE A COOPERATIVE PURCHASE AGREEMENT WITH CINTAS CORPORATION

THROUGH OMNIA PARTNERS TO OBTAIN CITYWIDE UNIFORM RENTAL AND LAUNDRY

SERVICES

RECOMMENDATION
It is recommended that the City Council adopt a resolution to:

1. Approve findings pursuant to Stockton Municipal Code Section 3.68.070 in support of an exception to the competitive bidding process.

It is also recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of the resolution.

Summary
The City of Stockton (City) provides uniforms to authorized department personnel under the terms of its various bargaining agreements. Some departments also require other supplies such as floormats provided through the same contract rental and laundry services. The City is currently in its final contract term for these services. To ensure regular service at a reasonable cost, the staff reviewed available cooperative agreements and recommended OMNIA Partners’ agreement with the Cintas Corporation, Cincinnati, OH, to best meet the City’s needs.

It is recommended that Council approve a resolution authorizing the City Manager to execute a Cooperative Purchase Agreement with Cintas Corporation for a four-year term not to exceed $1,354,200 with no additional extensions.

DISCUSSION
Background
Uniforms and floormats are rented and laundered weekly for City Departments including the Municipal Utilities (MUD), Public Works (PW), Police (PD), and Administrative Services (ASD). These services are necessary to meet adopted provisions outlined by applicable collective bargaining agreements. On January 15, 2019, the City of Stockton approved a cooperative purchasing agreement with Aramark Uniform and Career Apparel LLC (Aramark) for these services. The City is currently in the final contract term with Aramark, which expires on September 30, 2023.

City of Stockton Printed on 9/6/2023Page 1 of 3
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To obtain services that meet the needs of the City, MUD and ASD reviewed the offerings and capabilities under the OMNIA Partners national cooperative agreement R-BB-19002 with Cintas Corporation. The OMNIA Partners is a group purchasing organization that provides public agencies strategic procurement resources through nationally available and competitively bid contracts. The ASD verified that the OMNIA Partners agreement met competitive processes which were acceptable to the City. The MUD and PW staff evaluated the services and products offered by the Cintas Corporation and confirmed that they met the inventory and material requirements of the City’s collective bargaining agreements.

Staff recommends authorizing a contract with the Cintas Corporation for uniform rental and laundry service to give the MUD, PW, PD, and the ASD the ability to provide uniform rentals, floormats, and laundering services in accordance with City’s adopted collective bargaining agreements.

Present Situation
A recognized procurement best practice for public agencies is to utilize cooperative agreements that leverage the combined purchasing power of many entities (Exhibit 1 to Resolution). Cooperative agreements are established through a formal competitive bidding process that meets City requirements and thus fulfills the City’s procedural requirements for full and open marketplace competition.

The City is in the final contract extension for uniform and floormat rental, and laundry services with Aramark. On August 23, 2018, OMNIA Partners - formerly U.S. Communities Government Purchasing Alliance - solicited nationwide bids for facilities management products and solutions and awarded the Cintas Corporation contract R-BB-19002 Facility Management Products and Solutions for an initial five-year term and two (2) two-year extensions which will expire on October 31, 2027.

The not-to-exceed amount on the quote is based on the current and estimated staffing levels and historical expenditures. The estimated total four-year cost is $1,354,200 which includes an estimated three percent increase annually due to estimated changes in the consumer price index.

Staff recommends authorizing the City Manager to execute a four-year contract with the Cintas Corporation for a not-to-exceed amount of $1,354,200 for facility management products and solutions.

Findings
Stockton Municipal Code Section 3.68.070(A)(5) provides an exception to the competitive bidding requirements when the City Council approves findings that support and justify the purchase through a cooperative purchasing agreement. The findings to support this purchase are:

1. Cintas Corporation contract R-BB-19002 was established through a formal competitive solicitation process through OMNIA Partners.

2. Cintas Corporation contract R-BB-19002 for Facilities Management Products and Solutions scope and criteria meets the City’s needs.

3. Use of existing procurement agreements fosters the efficient use of public funds and helps City of Stockton Printed on 9/6/2023Page 2 of 3
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streamline local government procurement practices.

FINANCIAL SUMMARY
The estimated not-to-exceed amount is based on current staffing levels and historical expenditures.

The calculated estimated total cost is $1,354,200 and is allocated annually in the table below:

Department Estimated
FY2023-24
Cost*
Estimated
FY2024-25
Cost**
Estimated
FY2025-26
Cost**
Estimated
FY2026-27
Cost**
Total 4-year
Not to Exceed
Amount
Municipal
Utilities
$161,500.00 $216,200.00 $222,700.00 $229,400.00 $829,800 Public Works $95,000.00 $127,200.00 $131,100.00 $135,000.00 $488,300 Police $3,900.00 $5,200.00 $5,400.00 $5,600.00 $20,100
Administrative
Services
$3,100.00 $4,200.00 $4,300.00 $4,400.00 $16,000
TOTAL $263,500.00 $352,800.00 $363,500.00 $374,400.00 $1,354,200 * Estimated Annual Cost is for contract term October 1, 2023 - June 30, 2024. ** Estimated Annual Cost includes estimated three percent annual increase.

The costs listed above are estimates only. The actual costs may vary depending on departmental staffing level changes and/or actual repair or replacement costs which exceed initial estimates. The not-to-exceed total includes a three percent annual escalation per year to account for potential price changes based on the estimated consumer price index.

Sufficient funds are available in the various departmental uniform provision accounts to cover the cost of this cooperative purchasing agreement.

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Resolution No.

STOCKTON CITY COUNCIL

RESOLUTION AUTHORIZING A COOPERATIVE PURCHASE AGREEMENT WITH

CINTAS CORPORATION THROUGH OMNIA PARTNERS TO OBTAIN CITYWIDE

UNIFORM RENTAL AND LAUNDRY SERVICES

The City of Stockton (City) provides rental uniforms and laundry service to authorized personnel under the terms of its various bargaining agreements. Some departments require other supplies such as floormats provided through the same rental and laundry services; and

To obtain services which meet the needs of the City, staff reviewed the offerings and capabilities under the OMNIA Partners national cooperative agreement R-BB-19002 with Cintas Corporation; and

Staff verified the OMNIA Par tners agreement met competitive processes which were acceptable to the City. Staff evaluated the services and products offered by the Cintas Corporation and confirmed that they met the inventory and material requirements of the City’s collective bargaining agreements; now, therefore,

BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF STOCKTON, AS FOLLOWS:

1. The City Council approves findings pursuant to Stockton Municipal Code section 3.68.070 in support of an exception to the competitive bidding process for Citywide uniform rental and laundry services:
a. Contract R-BB-19002 with Cintas Corporation was established through a formal competitive solicitation process through OMNIA Partners. b. The scope and criteria of c ontract R-BB-19002 with Cintas Corporation for Facilities Management Products and Solutions meet the City’s needs. c. Use of existing procurement agreements fosters efficient use of public funds and helps streamline local government procurement practices.

2. The City Council authorizes the City Manager to execute a purchase agreement with Cintas Corporation to provide uniform rental and laundry services through a cooperative contract awarded by OMNIA partners, for a total not to exceed amount of $1,354,200 for a four-year term, a copy of which is attached as Exhibit 1 and incorporated by this reference.

//
//
//
//

3. The City Manager is hereby authorized to take appropriate and necessary actions to carry out the purpose and intent of this Resolution.

PASSED, APPROVED, and ADOPTED September 12, 2023 .

KEVIN J. LINCOLN II
Mayor of the City of Stockton
ATTEST:

ELIZA R. GARZA, CMC
City Clerk of the City of Stockton
1 (Rev. 9.30.22)

COOPERATIVE/PIGGYBACK PURCHASE AGREEMENT
AGREEMENT SUMMARY:

1. Cooperative/Piggyback
Name:

OMNIA R-BB-19002 Facilities Management
Products and Solutions.

2. Contractor: Cintas Cor poration

3. Cooperative Agency
Agreement Name and
Agreement Number:

OMNIA Agreement R-BB-19002

4. Cooperative Agency Initial
Agreement T
erm:

Start Date: December 13, 2018
End Date: October 31, 2023

5. Cooperative Agency’s
Agreement-Options to
extend:

Two (2) additional two (2) year periods

6. Cooperative Agency
Amended T
erm:

Contract renewal dated 8/ 2/21 renewed contract
period from November 1, 2023 through October 31,
2025
Modification #10 renewed contract period from
November 1, 2025 throu
gh October 31, 2027

7. Cooperative Agency
Remaining Options to
Renew:

None.

8. City of Stockton
Cooperative Purchase
A
greement Term:

Start Date: October 1, 2023
End Date: June 30, 2027

9. City of Stockton
Cooperative/ Piggyback
Purchase Agreement
Amount:

Not to Exceed $1,354,200. for the term of the
Agreement.

EXHIBIT 1
2 (Rev. 9.30.22)

AGREEMENT
The City of Stockton, a California municipal corporation on behalf of itself and its associated entities ("City"), and the above-named Contractor (“Contractor”), do hereby agree that City shall be granted the pricing, terms, and conditions under the above referenced OMNIA AGREEMENT R-BB-19002 (“COOP”) as such may be amended from time to time. The COOP and associated documents refer enced in the agreement are incorporated herein as Exhibit A to this City Cooperative/Piggyback Purchase Agreement (“Agreement”).

Contractor shall grant such pricing, terms, and conditions to City for all procurements of goods and services, whether taking place on a City purchase order, purchasing card (credit card), or other purchasing modality, whether via telephone, via the Contractor website, or via direct purchase at a Contractor retail location.

1. Agreement Term: The Term of this Agreement shall remain in effect from date of the signing of this Agreement through June 30, 2027 unless terminated earlier by the City.

2. Insurance and Hold Harmless: In addition to the prici ng, terms and conditions stated in the COOP and the associated docu ments incorporated herein as Exhibit A, Contractor shall, at Contra ctor’s sole cost and expense and for the full term of the Agreement or any extension thereof, obtain and maintain at least all the insurance requirements listed in attached Exhibit B.

To the fullest extent permitted by law, Contractor shall hold harmless, defend and indemnify City of Stockton and it s officers, officials, employees and volunteers from and against any and all liability, loss, damage, ex pense, costs (including without limitation costs and fees of litigation) of every nature arising out of or in connection with Contractor’s performance of work hereunder or its failure to comply with any of its obligations contained in the agreement, except such loss or damage which was caused by the sole negligence or willful misconduct of the Cit y of Stockton. This obligation is independent of, and shall not in any way be limited by, the minimum Insurance obligations contained in this Agreement. These obligations shall survive the completion or termination of this Agreement
.

3. Compensation: City and Contractor do hereby enter into this Agreement for Facilities Management Products and Solutions available in the above-named COOP and associated documents incorpor ated herein as Exhibit A and referenced in the attached quote Exhibit C. In no way, shall payment to the Contractor during the term of this Agreement exceed $1,354,200.00 for Facilities Management Products and Solutions and services. Any person signing this Agreem ent on behalf of City or Contractor does warrants that he or she has full authority to do so.

4. Governing Law. California la w shall govern any legal action pursuant to this Agreement with venue for all claims in the Superior Court of the County of San Joaquin, Stockton Branch or, where applicable, in the Federal District Court of California, Eastern District, Sacramento Division.

5. Applicable Law. Deliverables must conform with all applicable federal, state, and EXHIBIT 1
3 (Rev. 9.30.22)
CITY OF STOCKTON CONTRACTOR NAME.

By:
__________________________
Harry Black, City Manager Signature
Date:__
__________________

____________________________
Pr i n t n a m e
ATTEST: Title: ________________________
___
_________________________ [If Contractor is a corporation, signatures must Eliza R. Garza CMC, City Clerk comply with Corporations Code §313] APPROVED AS TO FORM:

By: __________________________
___________________________ Signature

Lori Asuncion, City Attorney
__________________________
Print name
Title: _______________________
local laws. Such conformity includes compliance with federal sanctions, and Contractor certifies that it has not an d will not engage in prohibited transactions with sanctioned persons or entities.

6. Special Funding. If Special Funding is applicable, Exhibit D – Special Funding Terms & Conditions are incorporated herein.

This Agreement m ay be amended only by a wr itten amendment, c onsistent with the COOP, signed by Contractor and City.

EXHIBIT 1
4 (Rev. 9.30.22)

EXHIBIT A
Executed Contract #R-BB-19002
Solicitation Package for Request for Proposals #R-BB-19002 EXHIBIT 1
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Anthony E. Crosby
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PURCHASING OFFICE
P.O. BOX 389, MANASSAS, VA 20108 xx HTTP://PURCHASING.DEPARTMENTS.PWCS.EDU/x 703.791.8743, FAX 703.791.8610

REQUEST FOR PROPOSAL

ADDENDUM
A D D E N D U M # 1 DA T E : A u g u s t 8 , 2 0 1 8 REFE
RENCE: Request for Proposal Number: R-BB-19002
Title: Fa
cilities Management Products and Solutions
I
s s u e D a t e : J
u l y 1 7 , 2 0 1 8
Sealed Proposal Due Date: August 23, 2018 @ 2: p.m.

All Offerors shall be advised of the following clarifications to the referenced solicitation:

1. Question: Please provide clarificatio n regarding the purpose of attachment F.

Answer: Attachment F, the Sample Contract, is provided to give proposers an idea of w hat a contract w ould look like if an aw ard w as made.

2. Question: Because terms, conditions and legal requirements for the performance of services can vary ac ross busines
s lines (Rental, First Aid & Safety and Fire Protection), will the local agreement to be executed by the Participating Public
Agencies be the governing document for the product or services being procured even if those terms and conditions may run contrary to that which is in the main agreement.

Answer: No. The Master Agreement w ill prevail and any end user agreement terms and conditions should reference those in the Master Agreement. End User Agreements may include additional terms, how ever, that are specific to the product or service being provided. Proposers should provide an example of each end user agreement they w ould ask a public agency to sign, as indicated in 7.13.12.11.

3. Question: The items listed on the National Market Bask et under Uniforms Purchased Nationwide are identical to the items listed on the Uniform Rental sheet. Should these be identical? Answ er: Yes, these are meant to be the same. The market basket items are simply being used to perform a cost comparison. These items should not be construed as a core list.

4. Question: 10.1 (pg. 13) option to renew for two (2) a dditional two-year periods, two-years at a time. However, on the “sample contract” Attachment F, 3.1 (pg. 32) it states option to renew for four additional, one-year perio
ds, one year at a time. Even though Attachment F is just a sample contract, should those terms match an d be set at th
e two-year term?
Answ er: The term in Section 10.1 is correct.

5. Question: 5.1.5 First Aid & Safety (pg 9) should Cintas include pricing for training courses we provide under our First
Aid & Safety Division. Training courses are part of offering.

Answ er: In order for this offering to be included in any resulting Master Agreement, it should be fully described in the offeror’s proposal. Pricing should be included.

EXHIBIT 1

PURCHASING OFFICE
P.O. BOX 389, MANASSAS, VA 20108 xx HTTP://PURCHASING.DEPARTMENTS.PWCS.EDU/x 703.791.8743, FAX 703.791.8610

6.Question: On the National Market Basket page there is a column called “Discount (Percentage from Discount Category”, is this to list the pricing discount from standard pricing? Answ er: Proposers should indicate the percentage discount for this item. That percentage discount should correspond to the discount entered in the “Discount by Category” tab for that category.

7. Question: On the page “Discount by Product Category” is this page to detail discounts on items not in the mark
et basket?
Answ er: The market basket w ill be used solely for comparison purposes and is not a core list. The proposer’s full price proposal should be contained in the “Discount by Category” tab.

8. Question: There are additional items in our enterprise th at our outside of the market basket of items given, is pricing
for those other items required to presented in our bid response? Answ er: The proposer must present pricing for all products and services in their proposal. The full pricing proposal should be contained in the “Discount by Category” tab. The market basket should, also, be completed but w ill be used solely for comparison purposes and w ill not be a part of any resulting Master Agreement.

9. Question: We view our organizational structure (org ch art) as proprietary can we assign this to be redacted? Answ er: Please see Section 7.10 of the RFP.

10. Question: With the NIGP trade show occurring the da te of the RFP submission requirement, can the deadline be extended?
Answer: No, the sealed proposal due date w ill not be changed.

11. Question: Do you have a “WORD” and/or “EXCEL” format version of the attached PDF that you could email me?
Our Administrative Department tried to convert the attached PDF in to WORD but it did not convert in a manageable form.

Answer: It is not PWCS’ standard practice to release solicitation documents in other than PDF.

ALL OTHER SPECIFICATIONS, TERMS AND CONDITIONS REMAIN UNCHANGED.

A signed acknowledgment of this addendum must be received by the Purchasing Office either prior to the Proposal due date and hour specified or attached to the RFP. Signature on this addendum does not constitute the Offeror’s signature on the original proposal document. The original proposal document shall also be signed.

Brian Burtner, CPPB, VCO
Buyer
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

ACKNOWLEDGMENT:

N a m e o f F i r m Si g n a t u r e
D a t e Pr i n t N a m e a n d T i t l e
Telephone Number Fax Number
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REV 2022-05-17
Exhibit B:

Insurance Requirements
(Dry Cleaning & Laundry Services)
Contractor shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder and the results of that work by the Contractor, his agents, representatives, employees or subcontractors.

MINIMUM SCOPE AND LIMIT OF INSURANCE
Coverage shall be at least as broad as:

1. Commercial General Liability (CGL): Insurance Services Office Form CG 00 01 covering CGL on an “occurrence” basis, including products and completed operations, property damage, bodily injury and personal & advertising injury with limits no less than $2,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location (ISO CG 25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence limit.

2. Automobile Liability: ISO Form Number CA 00 01 covering any auto (Code 1), or if Contractor has no owned autos, hired, (Code 8) and non-owned autos (Code 9), with limit no less than $1,000,000 per accident for bodily injury and property damage.

3. Workers’ Compensation: as required by the State of California, with Statutory Limits, and Employer’s Liability Insurance with limit of no less than $1,000,000 per accident for bodily injury or disease. ((Not required if contractor provides written verification it has no employees)
If the Contractor maintains broader coverage and/or higher limits than the minimums shown above, the City of Stockton requires and shall be entitled to the broader coverage and/or the higher limits maintained by the contractor. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City of Stockton.

Other Insurance Provisions
The insurance policies are to contain, or be endorsed to contain, the following provisions:

Additional Insured Status
The City of Stockton, its officers, officials, employees, and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of work or EXHIBIT 1
EXHIBIT 1
REV 2022-05-17
operations performed by or on behalf of the Contractor including materials, parts, or equipment furnished in connection with such work or operations. General liability coverage can be provided in the form of an endorsement to the Contractor’s insurance (at least as broad as ISO Form CG 20 10 11 85 or if not available, through the addition of both CG 20 10, CG 20 26, CG 20 33, or CG 20 38; and CG 20 37 if a later edition is used). Additional insured Name of Organization shall read “City of Stockton, its officers, officials, employees, and volunteers.” Policy shall cover City of Stockton, its officers, officials, employees, and volunteers for all locations work is done under this contract.

PPrimary Co vera ge
For any claims related to this contract, the Contractor’s insurance coverage shall be primary and non-contributory and at least as broad as ISO CG 20 01 04 13 as respects the City of Stockton, its officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by the City of Stockton, its officers, officials, employees, or volunteers shall be excess of the Contractor’s insurance and shall not contribute with it. This requirement shall also apply to any Excess or Umbrella liability policies. The City of Stockton does not accept endorsements limiting the Contractor’s insurance coverage to the sole negligence of the Named Insured.

Umbrella or E xcess Policy
The Contractor may use Umbrella or Excess Policies to provide the liability limits as required in this agreement. This form of insurance will be acceptable provided that all of the Primary and Umbrella or Excess Policies shall provide all of the insurance coverages herein required, including, but not limited to, primary and non-contributory, additional insured, Self-Insured Retentions (SIRs), indemnity, and defense requirements. The Umbrella or Excess policies shall be provided on a true “following form” or broader coverage basis, with coverage at least as broad as provided on the underlying Commercial General Liability insurance. No insurance policies maintained by the Additional Insureds, whether primary or excess, and which also apply to a loss covered hereunder, shall be called upon to contribute to a loss until the Contractor’s primary and excess liability policies are exhausted.

Notice of Ca ncella tion
Each insurance policy required above shall provide that coverage shall not be canceled, except with notice to the City of Stockton.

Wai ver of Subro gation
Contractor hereby grants to City of Stockton a waiver of any right to subrogation which any insurer of said Contractor may acquire against the City of Stockton by virtue of the payment of any loss under such insurance. Contractor agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the City of Stockton has received a waiver of subrogation endorsement from the insurer.

REV 2022-05-17
SSelf-Insured Retentions
Self-insure
d retentions must be declared to and approved by the City of Stockton. The City of Stockton may require the Contractor to purchase coverage with a lower retention or provide proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention. The policy language shall provide, or be endorsed to provide, that the self-insured retention may be satisfied by either the named insured or City of Stockton. The CGL and any policies, including Excess liability policies, may not be subject to a self-insured retention (SIR) or deductible that exceeds $25,000 unless approved in writing by City of Stockton. Any and all deductibles and SIRs shall be the sole responsibility of Contractor or subcontractor who procured such insurance and shall not apply to the Indemnified Additional Insured Parties. City of Stockton may deduct from any amounts otherwise due Contractor to fund the SIR/deductible. Policies shall NOT contain any self-insured retention (SIR) provision that limits the satisfaction of the SIR to the Named. The policy must also provide that Defense costs, including the Allocated Loss Adjustment Expenses, will satisfy the SIR or deductible. City of Stockton reserves the right to obtain a copy of any policies and endorsements for verification.

Acceptability of Insurers
Insurance is to be placed with insurers authorized to conduct business in the state with a current A.M. Best’s rating of no less than A:VII, unless otherwise acceptable to the City of Stockton.

Verification of Coverage
Contractor
shall furnish the City of Stockton with original certificates and amendatory endorsements or copies of the applicable policy language effecting coverage required by this clause and a copy of the Declarations and Endorsements Pages of the CGL and any Excess policies listing all policy endorsements. All certificates and endorsements and copies of the Declarations & Endorsements pages are to be received and approved by the City of Stockton before work commences. However, failure to obtain the required documents prior to the work beginning shall not waive the Contractor’s obligation to provide them. The City of Stockton reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time. City of Stockton reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.

Special Risks or Circumstances
EXHIBIT 1
EXHIBIT 1
REV 2022-05-17
City of Stockton reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.

Certificate Holder Address
The address for mailing certificates, endorsements and notices shall be:

City of Stockton
Its Officers, Officials, Employees, and Volunteers
400 E Main St, 3rd Floor – HR
Stockton, CA 95202
6 (Rev. 9.30.22)

EXHIBIT C
Cintas Facilities Solutions Agreement
City of Stockton Departmental Price Report
EXHIBIT 1
Cintas Representative Initials: Customer Initials: Page 1 of 5 Rev. 6.30.23
Facilities Solutions Agreement
Location #:

Contract #:

Customer #:

Main Corporate Code New CC 13218 Date:

Customer/Participating Agency: Phone:

Address: City: State: Zip:

UNIFORM PRODUCT RENTAL PRICING:

FACILITY SERVICES PRODUCT PRICING:

ITEM # DESCRIPTION UNIT PRICE
ITEM # DESCRIPTION RENTAL FREQ. INVENTORY UNIT PRICE
Automatic Lost Replacement Charge Item: % of inventory $ ea Automatic Lost Replacement Charge Item: % of inventory $ ea This agreement is effective as of the date of execution for a term of 60 months from the date of installation or renewal.

Standard Name Emblem $ ea Standard Agency Emblem $ ea Custom Agency Emblem $ ea Embroidery $ ea Uniform Advantage Item: $ ea per week
Premium Uniform Advantage Item: $ ea per week
Emblem Advantage Item: $ ea per week
Prep Advantage Item: $ ea per week
Minimum Charge $35 per delivery
Make-up Charge $ per garment
Non-Standard/Special Cut Garment (i.e., non-standard, non-stocked unusually small or large sizes, unusually short or long sleeve or length, etc.) premium $ per garment Seasonal Sleeve Change $ per garment
Under no circumstances will the Company accept textiles bearing free liquid. Shop towels may not be used to clean up oil or solvent spills.

Artwork Charge for Logo Mat $
Payment Terms: 2% Discount Net 15, Standard terms are Net 30 Size Change
Customer agrees to have employees measured by a Cintas representative using garment “size samples”.

A charge of $ per garment will be assessed for employee’s size changed within 4 weeks of installation.

Other

CHECKBOX INITIALS DATE
Initial and check box if Unilease. All Garments will be cleaned by customer. Initial and check box if receiving Linen Service. Company will take periodic physical inventories of items in possession or under control.

Initial and check box if receiving direct embroidery. If service is discontinued for any employee or Customer deletes any of the garments direct embroidery for any reason, or terminates this agreement for any reason or fails to renew this agreement, Customer will purchase all direct embroidered garments at the time they are removed from service at the then current replacement values.
Space for additional entries provided on page 4
Space for additional entries provided on page 4
EXHIBIT 1
Please reference attached Exhibit A

1.95 2.95

3.95 4.95

1.63 .16
NA

5.00 Please refrence Exhibit A attached
922
7/7/2023
City of Stockton (209) 937-7582
2500 Navy Drive Stockton CA 95206
.09
.10
.06
.06
.16
✔
AS
Cintas Representative Initials: Customer Initials: Page 2 of 5 Rev. 6.30.23

OMNIA PARTICIPATING PUBLIC AGENCIES TERMS

SUPPLIER GENERAL SERVICE TERMS SECTION

1. Participating Public Agencies: Supplier agrees to extend the same terms, covenants agreed to under the Master Agreement with Lead Public Agency Prince William County Public Schools to other government agencies (“Participating Public Agencies”) that, in their discr etion, desire to access the Master Agreement in accordance with all terms and conditions contained herein or attached hereto. Each participating Public Agency will be exclusively responsible and deal directly with Supplier on matters relating to length of agreement, ordering, delivery, inspection, acceptance, invoicing, and payment for products and services in accordance with the terms and conditions of the Master Agreement. Any disputes between a Participating Public Agency and Supplier will be resolved directly between them in accordance with and governed by the laws of the State in which the Participating Public Agency exists.

2. Master Agreement available at https://www.omniapartners.com/publicsector

3. Prices. Customer agrees to rent from Company, and Company agrees to provide to Customer, the Merchandise, inventory and services described on Exhibit A, “Merchandise & Pricing” at the prices set forth in Exhibit A. There will be a minimum charge of thirty-five dollars ($35.00) per week for each Customer location required to purchase its rental services from Company as set forth in this Agreement.

4. Buyback of Non-Standard Garments. Customer has ordered from Company a garment rental service requiring embroidered garments that may not be standard to Company’s normal rental product line. Those non-standard products will be designated as such under-Garment Description in Exhibit C. In the event Customer deletes a non-standard product, alters the design of the non-standard product, fails to renew the Agreement, or terminates the Agreement for any reason other than documented quality of service reasons which are not cured, Customer agrees to buy back all remaining non-standard products allocated to Customer that the Company has in service and out of service at the then current Loss/Damage Replacement Values.

5. Logo Mats. In the event that Customer decides to delete any mat bearing the Customer’s logo (Logo Mat) from the rental program, changes the design of the Logo Mats, terminates this agreement for any reason or fails to renew this Agreement, the Customer will purchase at the time of deletion, design change or termination, all remaining Logo mats that the Company has in service and out of service held in inventory at the then current Loss/Damage Replacement Value.

6. Adding Employees. Additional employees and Merchandise may be added to this Agreement at any time upon written or oral request by the Customer to the Company. Any such additional employees or Merchandise shall automatically become a part of and subject to the terms of this Agreement. If such employees are employed at a Customer location that is then participating under this Agreement, the Customer shall pay Company the one time preparation fee indicated on Exhibit A. Customer shall not pay Company any one time preparation fee for garments for employees included in the initial installation of a Customer location. There will be a one-time charge for name and/or company emblems when employees are added to the program in garments requiring emblems.

7. Emblem Guarantee. Customer has requested that Company supply emblems designed exclusively for Customer featuring Customer’s logo or other specific identification (hereinafter “Customer Emblems”). Company will maintain a sufficient quantity of Customer Emblems in inventory to provide for Customer’s needs and maintain a low cost per emblem through quantity purchases.

8. FRC Warranty. Customer agrees it bears sole responsibility for selecting the flame resistant clothing and fabrics (“FRC”) under this Agreement determining whether such items are appropriate for use by its employees and agents in their applicable work environment(s). CUSTOMER ACKNOWLEDGES THAT COMPANY HAS MADE

NO REPRESENTATION, WARRANTY , OR COVENANT WITH RESPECT TO THE FLAME-RESISTANT QUALITIES OR OTHER CHARACTERISTICS OF THE FRC OR WITH RESPECT TO THEIR FITNESS OR SUITABILITY FOR THIS OR ANY OTHER PURPOSE. COMPANY MAKES NO REPRESENTATION WHETHER THE FRC CONSTITUTES APPROPRIATE PERSONAL PROTECTIVE EQUIPMENT FOR THE ENVIRONMENT(S) TO WHICH CUSTOMER’S EMPLOYEES OR AGENTS MAY BE EXPOSED OR AS TO THE FRC’S ABILITY TO PROTECT USERS FROM INJURY OR DEATH. Customer agrees to notify all employees and other agents of Customer who may wear or will be wearing the FRC that it is not designed for substantial heat exposure or for use around open flames. Customer acknowledges that compliance with any and all OSHA or other similar regulations or requirements relating to personal protective equipment is the sole responsibility of Customer. Further, Customer releases Company from any and all liability that results or may result from the use of the garments, including but not limited to any alleged failure of the FRC to function as flame-resistant or provide protection against fire and/or heat. Customer hereby agrees to defend, indemnify and hold harmless Company from any claims and damages arising out of or associated with this Agreement or resulting from Customer’s or its employees’ use of the FRC.

9. High Visibility Garments. For high visibility garments, Customer bears sole responsibility for: (a) determining the level of visibility needed by wearers of the garments for their specific work conditions or uses: (b) identifying and selecting which garments meet the required level of visibility for any particular work conditions or uses; and (c) determining when garments require repair or replacement to meet the required level of visibility. If garment needs to be replaced outside of normal wear and tear, the customer will be charged the then current replacement value. Customer acknowledges and understands that the garments alone do not ensure visibility of the wearer. Customer further acknowledges that Company is relying upon Customer to determine whether any garments need repair or replacement to maintain the required level of visibility. Company represents only that the garments supplied satisfy certain ANSIIISEA standards to the extent the garments are so labeled.

Customer acknowledges that Company has made no other representations, covenants or warranties whether express or implied, related to the garments.

10. In the event Customer decides to discontinue the use of Customer Emblems, changes the design of the Customer Emblems, terminates this Agreement for any reason or fails to renew this Agreement, the Customer will purchase at the time of deletion, design change, termination or expiration, all remaining Customer Emblems that the Company allocated to Customer at the price indicated on Exhibit A of this Agreement. In no event shall the number of Customer Emblems allocated to Customer exceed the greater of (a) twelve (12) months’ volume for each unique Customer Emblem or (b) a quantity agreed to by Company and Customer and noted on Exhibit A.

11. Terminating Employees. Subject to the provisions of this Agreement, the weekly rental charge attributable to any individual leaving the employ of the Customer, or on a temporary leave of absence of three (3) weeks or more, shall be terminated upon oral or written notice by the Customer to the Company but only after all garments issued to that individual, or value of same at the then current Loss/Damage Replacement Values, are returned to Company.

12. Replacement. In the event any Mer
chandise is lost, stolen or is not returned to Company, or is destroyed or damaged by fire, welding damage, acid, paint, ink, chemicals, neglect or otherwise, the Customer agrees to pay for said Merchandise at the then current Loss/Damage Replacement Values.

13. Indemnification. To the fullest extent permitted by law, Company agrees to defend, indemnify, pay on behalf of and save harmless the Participating Public Agency, its elected and appointed officials, agents, employees and authorized volunteers against any and all claims, ility, demands, suits or loss, including reasonable attorneys’ fees and all other costs connected therewith, arising out of or connected to the services provided by Company under this Contract, but only to the extent of Company’s negligence.

14. Additional Items. Additional customer employees, products and services may be added to this agreement and shall automatically become a part of and subject to the terms hereof and all of its provisions. If this agreement is terminated early for convenience, the parties agree that the damages sustained by Company will be substantial and difficult to ascertain. Therefore, if this agreement is terminated by Customer prior to the applicable expiration date for any reason other than documented quality of service reasons which are not cured, or terminated by Company for non-payment by Customer at any time Customer will pay to Company, as termination charges and not as a penalty based upon the following schedule:

If this agreement is cancelled for convenience in the first twelve months of the term, Customer shall pay as termination charges equal to 50 weeks of rental service.

If this agreement is cancelled for convenience in months thirteen (13) through eighteen (18) of the term, Customer shall pay as termination charges equal to 36 weeks of rental service.

If this agreement is cancelled for convenience in months nineteen (19) through twenty-four (24) of the term, Customer shall pay as termination charges equal to 23 weeks of rental service.

If this agreement is cancelled for convenience after 24 months of service, Customer shall pay as termination charges of 10 weeks of rental service.

Customer shall also be responsible to return all of the Merchandise allocated to such Customer locations terminating this Agreement at the then current Loss/Damage Replacement Values and for any unpaid charges on Customer’s account prior to termination.

15. I authorize Cintas to verify my credit on Credit.net and/or by contacting the parties provided. I am authorized to sign on behalf of this company. In addition, I authorize Cintas to open a new account on behalf of the company and deliver the products or services listed above at the agreed upon pricing and delivery terms.

Cintas Location #: Customer Signature:

By: Print Name:

Title: Print Title:

Accepted-GM: Email:

Cintas Enterprise Account Yes No Customer Contact:

Cintas MAM Partners:

Customer Contact Email:

EXHIBIT 1
AS
922
Jose Alvarado
Uniform Sales Rep
Randy Glavin
Amanda Smith
✔
Cintas Representative Initials: Customer Initials: Page 3 of 5 Rev. 6.30.23
Accounts Payable Contact
Billing Information
How should the Business Name read on the invoice?
Do you have other sites/locations within your company that are set up for billing with Cintas? YES NO UNSURE Are you Tax Exempt? YES NO If Yes, where can I get a copy of your tax-exempt form? Account Payable Contact Name:

Account Payable Contact Phone #:

Account Payable Email:

Payer Street Address:

City: ST/PROV: ZIP/PC:

We will use the Payer address above as the address that is used for credit reference/credit check if it is different from service address. Same as Payer OR Same as Sold-To OR Portal/Third Party Bill-To Street Address:

City: ST/PROV: ZIP/PC:

Invoice Delivery (choose one): Leave at Site and Email Email Only Physically Mail Leave at site after service Do invoices require a purchase order? YES NO If yes, please provide PO# Will the same PO need to appear on each invoice? YES NO Is there an expiration date? Check
ACH/EFT - We will have our ACH/EFT team contact the AP contact above with ACH/EFT payment details Credit Card - We will have our Payment Center contact the AP Contact above for credit card details Unless noted below, your AP contact above will be automatically registered to manage your Cintas account online with myCintas Billing. myCintas allows you to conveniently access your account anytime using your computer, tablet, or mobile device! PAYER INFORMATION: This section covers the address where the person who pays the bills is and their contact information.

BILL-TO INFORMATION: This section covers where the bill will be mailed/sent to.

Payment Terms: 2% Discount Net 15, Standard terms are Net 30

WE CAN CUSTOMIZE HOW YOU RECEIVE YOUR BILL FOR PAYMENT PROCESSING

PAYMENT OPTIONS
EXHIBIT 1
AS
Cintas Representative Initials: Customer Initials: Page 4 of 5 Rev. 6.30.23
UNIFORM PRODUCT RENTAL PRICING (cont.):

FACILITY SERVICES PRODUCT PRICING (cont.):

ITEM # DESCRIPTION UNIT PRICE
ITEM # DESCRIPTION RENTAL FREQ. INVENTORY UNIT PRICE
Continued from page 1
Continued from page 1
EXHIBIT 1
AS
Cintas Representative Initials: Customer Initials: Page 5 of 5 Rev. 6.30.23

LOCATION LISTING
EXHIBIT 1
AS
Will need all addresses listed here in order to route correctly:

Public Works Corporation Yard 1465 S. Lincoln, Stockton, CA 95206 The 3 primary MUD sites are:

Municipal Utilities Department 2500 Navy Drive, Stockton, CA 95206 Municipal Utilities Department Stores 2501 Navy Drive, Stockton, CA 95206
Delta Water Treatment Plant 11373 N. Lower Sacramento Rd. Lodi, CA 95242
Water Field Office 704 N. West Lane, Stockton, CA 95210

EXHIBIT A - PRICING PER DEPARTMENT
CINTAS SERVICE PROGRAM OVERVIEW: WHY CHOOSE CINTAS:

Department Name
Graffiti
PW - FM Crafts
ASD - PW Stores
PW - FM Electrical
PW - Streets

PW - HVAC
PW - Fleet
PW - Janitorial
PW - Trees
PW - SEB Janitorial (22 E Weber Ave.)
PW - PD Janitorial (22 E Market St.)
PW - City Hall Janitorial (425 El Dorado)
PW - Signals
PW - Restroom
PW - Community Enhancement
PW - Lunchroom
PW - Admin Office
PW - Blacksmith Shop
Size Premium Estimate
Service Fee
Weekly Total
Department Name
2 - Water Field Office
ASD - MUD Stores
1 -Environmental Control
1 - Pump Station Maintenance
1 - MUD StormWater Admin
3- DWTP Operations
1 - Main Plant Operations
1 - Lab
1 - Collections
1 - MUD Main Plant Maintenance
3 - Delta Water Maintenance
1 - Engineering Building Portable Mats
Size Premium Estimates
Service Fee
Weekly Total

1. No up-front investment 1. Quality products - construction & condition

2. Soiled garments scanned on-site; soiled item pickup details printed on-site for your review (TruCount) 2. Personable, dependable Service Representative

3. Garments laundered according to CDC guidelines 3. Nationally recognized service provider

4. Garments inspected every cleaning and repaired and/or replaced as needed 4. Comprehensive product line

5. Prior to delivery, garments are scanned at our facility to ensure 100% return rate 5. Absolute service guarantee

6. Any discrepancy is ordered from our local stockroom or from our exclusive in-state distribution center. 6. Rapid response for special requests 282.57$

7. Printed delivery documentation is reviewed with local contact at each delivery (TruCount) 7. Custom & logo capabilities

8. Program is flexible for your changing needs 8. On-site inventory control Estimated Weekly Cost

96.88$
120.35$

36.91$

81.06$
778.82$

24.18$
250.00$
175.89$
212.64$

78.00$

54.00$

58.00$
233.08$

12.00$
204.10$

24.00$

12.00$
153.10$
-$
-$
$2,758.48
Estimated Weekly Cost
418.39$

40.38$

75.86$
475.17$

52.08$
125.76$
891.25$
-$
$4,276.22
1,195.67$
484.16$
118.40$

46.00$
200.00$
EXHIBIT 1
City of Stockton
Legislation Text
File #: 23-0678, Version: 1

ADOPT RESOLUTION FOR THE SINGLE AVAILABLE SOURCE PURCHASE OF BRUSH RIGS

RECOMMENDATION
It is recommended that the City Council adopt a resolution to:

1. Approve findings pursuant to Stockton Municipal Code section 3.68.070 in support of an exception to the competitive bidding process.

2. Authorize the purchase of four brush rigs plus upfitting of an existing brush rig for the Fire Department in the amount of $1,478,198 with DEROTIC Emergency Equipment of Rancho Cordova, CA.

It is also recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of this resolution.

Summary
On September 14, 2021, Council approved the use of $78,052,072 in American Rescue Plan Act (ARPA) Coronavirus State and Local Fiscal Recovery Funds. The purchase of various fire apparatus and equipment were identified as eligible expenses, including vehicles, generators, and related equipment.

It is recommended that Council adopt a resolution authorizing the single available source purchase of four upfitted brush rigs plus upfitting of an existing brush rig for completion and delivery in Fiscal Year (FY) 2023-24 with DEROTIC Emergency Equipment of Rancho Cordova, CA, for a total cost of $1,478,198 (Attachment A).

DISCUSSION
Background
On September 14, 2021, Council approved the use of $78,052,072 in ARPA Coronavirus State and Local Fiscal Recovery Funds. The purchase of various fire apparatus and equipment were identified as eligible expenses, including fire engines.

The City’s fleet of heavy fire equipment consists of 17 fire engines, five ladder trucks, and eight brush rigs. In the last two years, six fire engines, and two ladder trucks have been ordered to replace existing units and are awaiting completion and delivery later this calendar year. The turnaround time for building this customized equipment and the upfitting is extensive and specialized to the operation City of Stockton Printed on 9/6/2023Page 1 of 3
powered by Legistar™
File #: 23-0678, Version: 1
of the Fire Department. Upfitting refers to the augmentation of vehicles to add accessories and equipment customized to the operational needs of the firefighters.

The department utilizes the fleet of eight brush rigs for the purpose of fighting smaller fires that occur in hard-to-reach locations. The brush rigs provide an essential service to the Fire Department with their maneuverability and off-road capabilities.

The City’s replacement criteria for large trucks, based on industry standards for performance and efficiency, is 15 years or 100,000 miles. Adherence to this standard replaces equipment before routine failures and breakdowns are experienced, reducing the demand for extensive mechanical repairs. The replacement standard increases the resources available for preventative maintenance and is critical to the availability and performance of all fleet equipment, which includes all public safety and emergency response vehicles.

Present Situation
Public Works and the Fire Department have identified three brush rigs that have exceeded the standard life cycle and are recommended for replacement with DEROTIC (Attachment B). The equipment being replaced will be removed from the fleet and sold at a public auction. Due to the re- opening of Fire Station 1 in April 2023, an additional brush rig unit will be added to the fleet for this facility. The specifications for the brush rigs have been approved by the Fire Department and are consistent with the current brush rig builds.

Staff recommends Council approve a resolution authorizing the single available source purchase of four upfitted brush rigs and the upfit of one existing brush rig from DEROTIC Emergency Equipment for a total cost of $1,478,198. Staff has solicited for bids multiple times unsuccessfully due to the extremely competitive market and custom build of the units. Vehicle manufacturers have not completely caught up with the parts supply chain shortages caused by the COVID pandemic. These shortages have caused less vehicles to be manufactured, resulting in less inventory for purchase.

Dealerships are reluctant to bid vehicles because of the limited inventory and their ability to honor quoted pricing through the duration of our traditional government low bid procurement process.

DEROTIC Emergency Equipment is the only vendor available to meet the City’s needs for this custom equipment.

Findings
Pursuant to Stockton Municipal Code (SMC) section 3.68.070, Council may approve findings which support an exception to the competitive bidding process, including the use of a single available source justification purchase. These findings include:

1. The City does not have staffing available to provide equipment customization builds plus additional professional upfitting services.

2. The use of the Single Available Source is appropriate for this contract due to the specialized nature and build of the equipment.

3. The use of the Single Available Source procurement is appropriate for this purchase because it allows the City to be more competitive in acquiring equipment in current industry conditions City of Stockton Printed on 9/6/2023Page 2 of 3
powered by Legistar™
File #: 23-0678, Version: 1
as vendors struggle to honor quoted pricing through the duration of a traditional government low bid procurement process, particularly with the custom build of the units.

4. The use of the Single Available Source procurement will save the administrative expense of additional procurement attempts by City staff, given that there have already been multiple unsuccessful attempts to solicit bids and any additional attempts are not expected to garner a different outcome.

5. The City negotiated a purchase following approval of the Single Available Source justification, which supports an exception to the competitive bidding process in accordance with SMC section 3.68.070.

FINANCIAL SUMMARY
There are sufficient funds in Project WARP101 (0010-156-800004-280-282-30-00-000-000) to fund the purchase of four brush rigs.

The upfit of the existing brush rig will be funded in FY 2023-24 by the Fleet Internal Service Fund (ISF). There is adequate funding in the Fleet ISF, Equipment Acquisition (4530-718-800004-500- 000) to fund this purchase.

Purchase breakdown:

Four Turnkey Brush Rigs UNIT PRICE EXT PRICE
KC-6 - F550 or Equivalent Chassis $ 89,250.00 $ 357,000.00 Upfitting $199,500.00 $ 798,000.00
Taxable Fees (DMV) $ 400.00 $ 1,600.00
Subtotal $289,150.00 $1,156,600.00
Sales Tax (9.00%) $ 26,023.50 $ 104,094.00
Non-Taxable Fees (CA Tire) $ 12.25 $ 49.00 Turnkey Total: $315,185.75 $1,260,743.00
One Brush Rig Upfit PRICE
Customer Supplied Chassis $ 0.00
Upfitting $ 199,500.00
Taxable Fees (DMV) $ 0.00
Subtotal $ 199,500.00
Sales Tax (9.00%) $ 17,955.00
Non-Taxable Fees (CA Tire) $ 0.00
Upfit Only Total: $ 217,455.00
Grand Total $1,478,198.00
There is no impact to the City’s General Fund or any other unrestricted fund as a result of taking the recommended action.

Attachment A - Quotes from DEROTIC Emergency Equipment
Attachment B - Equipment Replacement List
City of Stockton Printed on 9/6/2023Page 3 of 3
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Certiﬁed WOSB * Cage Code 8LK32 * DUNS 044045308 * CA DGS Micro Business Certiﬁcate 2006281 Disruptive Excellence Relies on Tactical, Innovative Change July 18, 2023
Alanna Bindi - Project Manager
City of Stockton - Public Works
Municipal Service Center
1465 S. Lincoln Street
Stockton, CA 95206-1941
Ms. Bindi,
Derotic Emergency Equipment is pleased to offer you the following proposal:
● This proposal is for one (1) KC-6 Type-6 vehicle, with customer supplied chassis. ● The total price is as follows:

UNIT PRICE
KC-6 – F550 or Equivalent Chassis N/A - Customer Supplied V ehicle Upfitting $199,500.00
Taxable Fees (DMV) N/A - Customer Supplied V ehicle
Subtotal $199,500.00
Sales Tax (9.00%) $17,955.00
Non-Taxable Fees (CA Tire) N/A - Customer Supplied V ehicle GRAND TOTAL: $217,455.00
● In the event of a tax rate change the price will be adjusted accordingly. ● The City of Stockton will be invoiced for parts as they are ordered. ○ These charges will be deducted from the final invoice. ● This price includes: a pre-construction meeting, basic lettering / striping, training, a final inspection at our facility in Rancho Cordova, and delivery to the City of Stockton. ● This price is good until September 29, 2023.
○ At that time, additional price extensions must be requested.

We look forward to working with you and your staff to deliver your new KC-6 Fire Apparatus, which will give the City of Stockton many years of service.

Sincerely,
Case
Demae James Mario Demattei
Casey Demattei James Mario Demattei
CEO / Co-Owner President / Co-Owner
3941 Park Dr . #20-193, El Dorado Hills, CA 95762 * PH: (844) 433-7684

ATTACHMENT A
Certiﬁed WOSB * Cage Code 8LK32 * DUNS 044045308 * CA DGS Micro Business Certiﬁcate 2006281 Disruptive Excellence Relies on Tactical, Innovative Change July 18, 2023
Alanna Bindi - Project Manager
City of Stockton - Public Works
Municipal Service Center
1465 S. Lincoln Street
Stockton, CA 95206-1941
Ms. Bindi,
Derotic Emergency Equipment is pleased to offer you the following proposal:
● This proposal is for four (4) KC-6 Type-6 vehicles.
● The total price is as follows:

UNIT PRICE EXTENDED PRICE
KC-6 – F550 or Equivalent Chassis $89,250.00 $357,000.00 Upfitting $199,500.00 $798,000.00
Taxable Fees (DMV) $400.00 $1,600.00
Subtotal $289,150.00 $1,156,600.00
Sales Tax (9.00%) $26,023.50 $104,094.00
Non-Taxable Fees (CA Tire) $12.25 $49.00
GRAND TOTAL: $315,185.75 $1,260,743.00
● In the event of a tax rate change the price will be adjusted accordingly. ● The City of Stockton will be invoiced for parts as they are ordered. ○ These charges will be deducted from the final invoice. ● This price includes: the specified vehicles, a pre-construction meeting, basic lettering / striping, training, a final inspection at our facility in Rancho Cordova, and delivery to the City of Stockton. ● This price is good until September 29, 2023.
○ At that time, additional price extensions must be requested.

We look forward to working with you and your staff to deliver your new KC-6 Fire Apparatus, which will give the City of Stockton many years of service.

Sincerely,
Case
Demae James Mario Demattei
Casey Demattei James Mario Demattei
CEO / Co-Owner President / Co-Owner
3941 Park Dr . #20-193, El Dorado Hills, CA 95762 * PH: (844) 433-7684

ATTACHMENT A

ATTACHMENT B
Vehicle List
Unit # Year Make Model Mileage Department Division/
Section
Purchase
Type
2742 2003 FOR 4X4 F550 BRUSH RIG 79,999 Fire Fighting Replacement 2743 2003 FOR 4X4 F550 BRUSH RIG 70,090 Fire Fighting Replacement 2744 2003 FOR 4X4 F550 BRUSH RIG 78,155 Fire Fighting Replacement 5638 2020 FOR 4X4 F550 BRUSH RIG 200 Fire Fighting Upfitting Add 4X4 F550 BRUSH RIG Fire Fighting Add

Resolution No.

STOCKTON CITY COUNCIL

RESOLUTION APPROVING FINDINGS AND AUTHORIZING THE PURCHASE OF

BRUSH RIGS

On September 14, 2021, Council approved the use of $78,052,072 in A merican Rescue Plan Act (ARPA) Coronavirus State and Local Fiscal Recovery Funds. The purchase of various fire apparatus and equipment were identified as eligible expenses, including fire engines; and

The City’s fleet of heavy fire equipment consists of 17 fire engines, five ladder trucks, and eight brush rigs. The department utilizes the fleet of eight brush rigs for the purpose of fighting smaller fires that occur in hard -to-reach locations. The brush rigs provide an essential service to the Fire Department with their maneuv erability and off - road capabilities; and

Public Works and the Fire Department have identified three brush rigs that have exceeded the standard life cycle and are recommended for replacement. The equipment being replaced will be removed from the fleet and sold at a public auction. Due to the re-opening of Fire Station 1 in April 2023, an additional brush rig unit will be added to the fleet for this facility, now, therefore,

BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF STOCKTON AS FOLLOWS:

1. The City Council approves the following findings pursuant to Stockton Municipal Code section 3.68.070 in support of an exception to the competitive bidding process:
a. The City does not have staffing available to provide equipment customization builds plus additional professional upfitting services.

b. The use of the Single Available Source is appropriate for this contract due to the specialized nature and build of the equipment.

c. The use of the Single Available Source procurement is appropriate for this purchase becaus e it allows the City to be more competitive in acquiring equipment in current industry conditions as vendors struggle to honor quoted pricing through the duration of a traditional government low bid procurement process, particularly with the custom build o f the units.

d. The use of the Single Available Source procurement will save the administrative expense of additional procurement attempts by City staff, given that there have already been multiple unsuccessful attempts to solicit bids and any additional att empts are not expected to garner a different outcome.

c. The City negotiated a purchase following approval of the Single Available Source justification, which supports an exception to the competitive bidding process in accordance with SMC section 3.68.070.

2. The City Council authorizes the purchase of four brush rigs plus upfitting of an existing brush rig for the Fire Department in the amount of $1,478,198 with DEROTIC Emergency Equipment of Rancho Cordova, CA.

3. The City Manager is hereby authorized to take whatever actions are necessary and appropriate to carry out the purpose and intent of this Resolution.

PASSED, APPROVED, and ADOPTED September 12, 2023 .

___________________________
KEVIN J. LINCOLN II
Mayor of the City of Stockton

ATTEST:

___________________________
ELIZA R. GARZA, CMC
City Clerk of the City of Stockton

City of Stockton
Legislation Text
File #: 23-0839, Version: 1

ADOPT A RESOLUTION APPOINTING A MEMBER TO THE MEASURE W OVERSIGHT

COMMITTEE

RECOMMENDATION
It is recommended that the City Council adopt a resolution ratifying the appointment of Mario Enriquez to the Measure W Oversight Committee for a term beginning immediately and ending on January 31, 2025.

DISCUSSION
Background
The Measure W Oversight Committee was established April 26, 2005, by City Council Resolution 05- 0171 pursuant to the Stockton Safe Neighborhood Gang and Drug Prevention Police/Fire Response Measure Program Guidelines. The Committee is tasked with insuring that monies received from the sales and use tax enacted based on Measure W are being spent in accordance with the requirements outlined in the Measure. The Committee considers oral reports by City staff and other involved persons concerning the use of Measure W monies, reviews the annual audit and adopts an annual report which is presented to the City Council.

Eligibility Requirements
Members who desire to serve on this committee must reside within the City’s geographic boundary and not be an employee, vendor, contractor, or consultant actively conducting business with the City.

After appointment to the committee, members must complete a Statement of Economic Interest form 700 within 30 days of appointment. Terms of service are for two years, and members shall serve no more than two terms.

Present Situation
Councilmember Villapudua reviewed active applications on file received by the Clerk’s Office. After review is recommending for Council ratification the replacement of current appointee, Raymond Zulueta with Mario Enriquez. Upon Council adoption Mr. Enriquez will take over the term effective immediately and will complete what will be considered a full term on January 31, 2025.

FINANCIAL SUMMARY
There is no direct fiscal impact with this appointment as the members of this committee receive no remuneration.

Attachment A - Redacted Applications
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Submit Date: Aug 29, 2023
Email Address
First Name Last Name
Street Address Suite or Apt
City State Postal Code
Primary Phone Alternate Phone
Employer Job Title
Application for appointment and background information for City of Stockton Boards, Commissions, and Committees
Profile
Ethnicity
Gender
What district do you live in? *
District 4
I declare under penalty of disqualification/termination that I have been a resident at the above address for years/months?
1 year, 7 months
The City of Stockton uses email as the preferred method of communication regarding your application. Is this acceptable to you?
Yes No
Employer Address
Mario Enriquez
Stockton CA
Mario Enriquez

ATTACHMENT A
Are you currently serving on a City of Stockton Board, Commission, or Committee? Yes No
Which Boards would you like to apply for?
Measure W Oversight Committee: Submitted
Question applies to multiple boards
NOTE: This Board requires membership with one of the following groups. If none, please remove board from your application. Are you knowledgeable, have experience in, or extensive background in any of the following areas? Select all that apply. * Active in community activities significant enough to confirm knowledge of issues and individuals within the community
Possess decision-making abilities
Understanding of Ethnic/Gender Diversity
Willingness to tolerate/promote change
I have been a resident of Stockton for at least 3 years.

Yes No
Question applies to Strong Communities Advisory Committee,Measure W Oversight Committee Do you reside within Stockton’s geographic boundary?
Yes No
Question applies to Strong Communities Advisory Committee,Measure W Oversight Committee Are you an employee of any vendor, contractor or consultant doing business with the City of Stockton?
Yes No
Interests & Experiences
Please tell us about yourself and why you want to serve.

I'm a committed community leader raised in the Central Valley with a passion of service and giving back to my community. I graduated from University of the Pacific in 2010 and set out on a mission to learn as much as I can and come back to the San Joaquin County. I have worked for civil rights organizations, members of Congress, and trained LGBTQ leaders to run for elected office in Washington, DC and am eager to work and serve my fellow Stocktonians.

Mario Enriquez

ATTACHMENT A
Please state the reason you would like to be a member of this board/commission.

I would like to serve on the Measure W Oversight Committee because I know firsthand how local policies can impact our neighbors and their families and I want to bring my policy background to serve on the Measure W Oversight Committee. I am laser-focused on working with anyone and building consensus to ensure resources are being used well and positively impacting our region. As a graduate from a public policy program, I have the education and training to best serve on this committee.

Have you served on an advisory group before?
Yes No
If yes, please explain.

Stockton ServiceCorps Advisory Board (present) and Lathrop Youth Advisory Commission (1999-2003).

How did you hear about the position?
Councilmember Brando Villapudua recommended I apply.

City Council Policy 100-2 states that Commissioners are required to attend meetings on a regular basis. If appointed, will you be able to attend meetings regularly and devote the time necessary to fulfill your duties as a member?
Yes No
Do you or immediate family members have any relationship (professional, financial, other) that may present a potential conflict of interest for this advisory group? Yes No
Background Information
Based on your best judgment, does this Commission make decisions that may affect any sources of income, interests in real property, or investments of you or your spouse? Yes No
Voter Registration (Questions appear if required)
Submit Application
Mario Enriquez

ATTACHMENT A
Enter Your Initials:

ME
Date Signed
8/29/2023
Mario Enriquez

ATTACHMENT A
Resolution No.

STOCKTON CITY COUNCIL

RESOLUTION APPOINTING A MEMBER TO THE MEASURE W OVERSIGHT

COMMITTEE

Positions on the Measure W Oversight Committee are directly appointed by City Councilmembers with terms that coincide with the appointing Councilmember; and

Councilmember Villapudua has reviewed applications and has made a nomination for appointment , replacing the current appointee, Raymond Zulueta with Mario Enriquez; now, therefore,

BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF STOCKTON, AS FOLLOWS:

1. Mario Enriquez is found to meet the criteria for appointment and is authorized to serve as a member representing District 5 on the Measure W Oversight Committee with an appointment to commence immediately and end January 31, 2025.

PASSED, APPROVED and ADOPTED September 12, 2023 .

KEVIN J. LINCOLN II
Mayor of the City of Stockton
ATTEST:

ELIZA R. GARZA, CMC
City Clerk, City of Stockton

City of Stockton
Legislation Text
File #: 23-0825, Version: 1

ADOPT A MOTION TO ALLOCATE AND APPROPRIATE GRANT AND GENERAL FUND CONTINGENCY FUNDING FOR A THREE-YEAR OPERATIONS SUBSIDY FOR ST. MARY’S

DINING ROOM

RECOMMENDATION
It is recommended that the City Council adopt a motion to:

1. Allocate and appropriate $5,380,000 of General Fund Contingency, Homeless Housing Assistance and Prevention (HHAP) and American Rescue Plan Act (ARPA) funds for a three- year, campus-wide shelter operations subsidy to St. Mary’s Dining Room.

2. Authorize the City Manager, or designee, to enter into a contract with St. Mary’s Dining Room for the operations of the shelter campus for a period of three years, with option to renew.

3. Approve findings pursuant to Stockton Municipal Code section 3.68.070 in support of an exception to the competitive bidding process.

4. Authorize the City Manager, or designee, to enter into and execute any associated documents and take appropriate and necessary actions to carry out the purpose and intent of this motion.

Summary
On Tuesday, July 18, 2023, City staff learned that the Stockton Shelter for the Homeless planned to close the shelter (Family Shelter, Veteran’s Shelter, and the Lodge) on or around August 15, 2023.

On Monday, July 31, the City declared an emergency to protect the approximately 250 people currently staying at the Stockton Shelter for the Homeless.

Emergency sheltering is a critical component of our homeless system of care. The City does not currently fund shelter operations at Stockton Shelter for the Homeless, nor has the City historically funded substantial investments in shelter operations to the Stockton Shelter for the Homeless or any other Stockton-based shelters. The Stockton Shelter for the Homeless is the largest shelter in the County with more than 300 beds and another up to 180 beds under construction. Providing shelter operating funds that are tied to the City’s sublease of the land represents a structural change and an opportunity for the City to specify an accountability structure, with contractual requirements on sheltering best practices and policies, operational benchmarks, oversight, monitoring, and reporting.

The St. Mary’s Dining Room (SMDR) will provide low-barrier 24/7 shelter operations, including staffing for operations, security, and facility management for all shelter buildings (up to ~500 beds).

SMDR will create a master facility plan for its property, that will include the former Stockton Shelter for the Homeless shelter buildings and the Pathways Program currently under development. A 24/7 City of Stockton Printed on 9/6/2023Page 1 of 5
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Intake Center will match guests to appropriate shelter services, and guests will be offered case management services. SMDR will operate the entire campus based on a Housing First model that focuses on assisting unsheltered households move to permanent housing.

During discussions for SMDR to take over the sublease of the shelter property, both the City and County recognized a shortfall in the operational plan and understood that SMDR would need funding to manage the shelter operations. The City and County discussed proposing a commitment to each cover half of the estimated $10,760,460 ($3,586,820 per year) funding gap upon recommendation to and approval by their respective governing bodies. The County identified $5,380,000, half of the three-year operating shortfall, that was presented to and approved by the Board of Supervisors on August 22, 2023 (BL-23-161).

DISCUSSION
Background
On Tuesday, July 18th, City staff learned that the Stockton Shelter for the Homeless planned to close the shelter (Family Shelter, Veteran’s Shelter, and the Lodge) on or around August 15, 2023.

On Monday, July 24, City and County staff met with representatives from the nonprofit Stockton Shelter for the Homeless who confirmed the closure and committed to working on a successful management transition. That same day, City and County staff met with representatives from St.

Mary’s Dining Room (SMDR) to discuss the status of its ongoing merger negotiations with Stockton Shelter for the Homeless, including but not limited to the capacity and readiness to assume the shelter operations. SMDR presented a proposed management structure and campus-wide homeless services operating budget that would be the basis of a management transition of shelter operations and could be activated as soon as August 15, 2023 to prevent the displacement of shelter guests.

On Wednesday, July 26, Staff reached out to Caltrans District 10 Right of Way Division notifying them of the urgent nature to get their permission to change the assignment of sub tenants per Airspace Lease 10-SJX005-0100-01. On July 27, 2023, Staff received a letter confirming they concur with the City’s proposal to have SMDR assume the sublease.

On Monday, July 31, the City declared an emergency to protect the approximately 250 people currently staying at the Stockton Shelter for the Homeless.

That same day, staff met with Salvation Army to discuss their ability and readiness to assume operations should it be necessary.

Later that same day, both the Stockton Shelter for the Homeless and SMDR were sent an agreement to sign that would transfer the current lease of the shelter site to SMDR which would ensure no gap in service to our unsheltered homeless individuals. SMDR returned a signed document on Tuesday, August 1st and the Stockton Shelter for the Homeless did not sign.

Without a signed agreement, approximately 250 homeless individuals were at imminent risk of losing a safe and secure place to sleep at night and being in close proximity to meals, showers, and services that they rely on during the day. Therefore, on August 2nd, Stockton Shelter for the Homeless nonprofit entity was sent a letter to vacate the property by August 16th.

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The Local Emergency was ratified by the City Council on Thursday, August 3, 2023.

During this time, Staff focused on planning and preparing for any potential outcome, concurrently working on the following strategies:
· Assignment of Existing Lease: Working with both the Stockton Shelter for the Homeless and SMDR to facilitate the assignment of the sublease, as this was deemed the least disruptive to the approximately 250 shelter guests. The City hired outside council with expertise in non- profit law to help coordinate the legal requests made by each entity; · Turnkey Interim Solution: Coordinating three local nonprofits to develop a proposal for a “turnkey interim sheltering solution” that would accommodate all individuals currently sheltering at Stockton Shelter for the Homeless and would be ready for implementation on or before August 16th; and,
· Emergency Temporary Shelter: Developing a City Emergency Sheltering Plan utilizing the Civic Auditorium as an emergency shelter solution, including the purchase of 250 cots and sufficient emergency blankets for two weeks of emergency shelter, in the event the plan was implemented.

On Thursday, August 10, the Stockton Shelter for the Homeless and SMDR signed the Assignment and Assumption Agreement (Attachment A) transitioning the Stockton Shelter for the Homeless sublease, including operations, to SMDR effective September 1, 2023. SMDR and the City also signed an amendment to the Airspace Lease (Attachment B).

Present Situation
Stockton Municipal Code 2.82.110 states that any expenditures made in connection with emergency activities […] shall be deemed conclusively to be for the direct protection and benefit of the inhabitants and property of the City. The City has incurred $358,482.48 in costs related to the Emergency Declaration and associated strategies, including costs associated with the Assignment and Assumption Agreement, the amended Airspace Lease, and emergency planning expenses, including equipment and supplies purchases, and contingency planning and consulting fees incurred by nonprofit partners that were paid by either ARPA or General Fund Contingency funds, as described below.

Pursuant to Section 12 of the executed Assignment and Assumption Agreement, the City agreed to provide the Stockton Shelter for the Homeless funding for the continued operation of the premises, “Premises Operating Expenses,” beginning on August 16, 2023, and ending on 12:00 PM (Noon) PST, on September 1, 2023 in an amount equal to the July Payroll Charges and July Utility Charges, or $62,484.45 supported by General Fund Contingency.

Pursuant to Section 2 of the executed Amendment to Airspace Ground Sublease, the City agreed to provide St. Mary’s Dining Room $250,000, supported by ARPA funds, to be used as short term or “bridge funding” for costs directly attributable to assuming operations of the homeless shelter and necessary investments to bring current living quarters up to minimum standards.

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The City engaged the Salvation Army as the Lead, with SMDR and United Way as partners to Salvation Army to develop a proposal for a turnkey interim sheltering solution that would accommodate all individuals currently sheltering at Stockton Shelter for the Homeless and would be ready for implementation on or before August 16th. This served as a contingency option in the event that an agreement could not be reached between the City, the Stockton Shelter for the Homeless, and SMDR to reassign the sublease. Costs incurred by Salvation Army and the partner agencies for the planning and preparation for this proposal were $17,568.03, supported by the General Fund Contingency.

As part of this strategy, and in the event the City would need to implement its own Emergency Shelter Plan utilizing the Civic Auditorium, the City purchased supplies, including 250 cots and sufficient emergency blankets for two weeks of emergency shelter. Costs for these supplies totaled $28,430, supported by ARPA funds.

Both the City and County recognized a shortfall in the operational plan and understood that SMDR would need funding to manage the shelter operations. SMDR estimates the three-year operating gap for 24-7 sheltering (beds, food, hygiene) for the following Stockton Shelter for the Homeless’ buildings: Family Shelter, Veteran’s Shelter, Lodge, and the Navigation Center to be $10,760,460, or $3,586,820 per year.

The City and County discussed proposing a commitment to each cover half of the funding gap, $5,380,000 respectively, upon recommendation to and approval by their respective governing bodies.

This funding would be contingent upon SMDR’s willingness and ability to transition and assume shelter operations without the displacement of any homeless individuals.

The County identified $5,380,000, half of the three-year operating shortfall, that was presented to and approved by the Board of Supervisors on August 22, 2023.

The substantially negotiated operations contract (a substantially completed draft has been included as Attachment C) provides the City a path for accountability, consistent program standards and high levels of service. SMDR will provide low-barrier 24/7 shelter operations, including staffing for operations, security, and facility management for all shelter buildings (up to ~500 beds). SMDR will create a master facility plan for its property, that will include the former Stockton Shelter for the Homeless shelter buildings and the Pathways Program currently under development. A 24/7 Intake Center will match guests to appropriate shelter services, and guests will be offered case management services with the goal of moving individuals to permanent housing.

The City’s commitment of$5,380,000 for half of the three-year operating shortfall would come from a combination of three sources:
· $800,640 from the Council-approved ARPA contingency fund. Those funds have already been received by the City and are available for use.
· $760,000 from the Council-approved Homeless Housing, Assistance, and Prevention (HHAP) Round 1 grant funds. These funds were recaptured from subrecipient projects that were either not extended or projects that terminated and did not fully expend their funds. These funds City of Stockton Printed on 9/6/2023Page 4 of 5
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have already been received by the City and are available for use. · $1,899,412 from the Council-approved HHAP Round 3 grant funds. · $1,919,948 from the General Fund contingency. Per the Emergency Declaration, the City Manager, or designee, is authorized to adjust appropriations from the General Fund Contingency account to General Fund Departments as needed for unexpected expenditures or emergencies that are unanticipated at the time of the budget adoption.

Findings
Pursuant to Stockton Municipal Code (SMC) 3.68.070, Council may approve findings which support an exception to the competitive bidding process. These finding include:

1. Cases of Emergency. Ensuring the protection, stability, and continuity of services to individuals relying on the former Stockton Shelter for the Homeless site, the largest shelter site in the City, is in the interest of averting a public health and safety emergency within the City. The City Manager, in his capacity as Director of Emergency Services, issued a proclamation of the existence of a local emergency on July 31, 2023, due to the potential imminent closure of the shelter site. That emergency proclamation was ratified by this Council on August 3, 2023. In an effort to resolve the pending emergency, the City negotiated an assignment of the shelter’s sublease to SMDR. However, without an operating subsidy, SMDR will be unable to operate the shelter property and avoid a public health and safety emergency.

2. The City does not have sufficient staff, resources, or experience to assume operations of the homeless shelter itself.

3. SMDR already operates three of the four components of a shelter adjacent to the site of the shelter property: they have been providing hygiene services, meal services, and social services. Additionally, on March 21, 2023, this Council approved a procurement process that found SMDR is qualified to operate a low barrier shelter project (the Pathways Program).

4. SMDR holds the sublease to the shelter property, which vests SMDR with control of the property for the duration of the sublease that expires on December 31, 2027.

FINANCIAL SUMMARY
This request includes $1,919,948 of General Fund Contingency. The remainder $3,460,052 of funds incur no financial impact to the City’s General Fund or any other unrestricted funds as a result of this action. HHAP 1 and 3 grant funding will be budgeted and appropriated in the Special Grant Fund, Housing Division, Community Services Program.

Attachment A - Assignment and Assumption
Attachment B - Amendment to Sublease
Attachment C - Shelter Operating Agreement
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ASSIGNMENT AND ASSUMPTION AGREEMENT

OF AIRSPACE GROUND SUBLEASE
corporation ("Assignor"). St. Mary's Dining Room, a California non-profit corporation "Assignee"), and the City of Stockton, a municipa) corporation (the "City"). with reference to the following facts:

A. City lias lcased from the State of Califomia, Department of Transportation ("Caltrans") tliat ccrtain ground airspace as described in Airspace Ground Lease No. 10-S.?XOO5- 0700 (tlie "Caltrans Lease").

B. City, as sublessor, ltas subleased certain premises (tlie "Premises") under the Camans Lease to Assignor, as sublessee, pursuant to and as particularly described in that certain Airspace Ground Sublease ctitered into betwecn City and Assignor, dated July 23, 2003 (thc "Sublease Agreement," attached liereto as Exhibtt A and incorporated by this reference). Tlic Sublease Agrceinent was twice extended by the City and Assignor, witli tlie term of t)ie Sublease Agreement's current renewal period to run until December 31, 2027. There are no additional renewal periods under the Sublease Agreement.

C. AssignorhasutilizedthePremisesfortliepurposeofprovidinghousingtohomeless persons within the community, and in furtherance thereof has made yarious improyements to the Premises including, but not limited to, the installation and/or construction of permanent buildings and manufactured facilities currently referrcd to or described as the (l) "Administration Building," (2) "Women's Overflow Building," (3) "Family Shelter Building," (4) Men's Ovemight Shelter Building," (5) "Maintenance Building," (6) "Navigation Center" (a 3-story building, currently under construction, that has been planned to include office space, community services, and additional beds), atid (7) five single trailers (collectively the "Improvements"). Subject to the City forgiving tlic Community Development Block Graiit Notcs to Assignor, and the San Joaquin County Community Development Dcpartment forgiving the May 5, 2017, $270,000 Note ("County Note") thc improvements are currently owned by Assignor atid, to Assignor's knowledge, will be free and clear of any n'ionetary liens wlien these debts are f'orgiven. Also situatcd upon tlie Premiscs arc various fixtuits, furniture. and equipment owned by Assignor which, to Assignor's knowledge, following tlic City forgi'ving the Community Dcvelopment Block Grant Notes to Assignor, will bc free aiid clcar of any monetary liens (collectively the "Personal Property"). Assignor agrees to cooperate witli the City in requesting that the County Note be forgiven by San Joaquin County along witli requestiiig a reconveyance of the deed of trust, dated May 5, 2017 securing the County Note ("Deed of Trust"). Tlic City may also request that tlie County restructurc tlic tcrms of tlic County Note. Sliould the County of SanJoaquin proceed to collect on the County Note, the City agrees to be responsible to pay offthe County Note. Assignee acknowledges tliat tliere is a Deed of Trust against the leascliold estate that is the subject of the Sublease Agreement. By agreeing to accept the Sublease Agreement, Assignee is not agreeing to assume aiiy liability under tlie Couxity Notc.

D. Pursuant to California Corporations Code 83 5913, Assignor must give writtennotice to the Attorney General for the State of California twenty (20) days before it sells, leases,

ATTACHMENT A
convcys, exchanges, transfers or otherwise disposes of all or substantially all of its assets, unless the Attorney General for tbe State of California has given Assignor a written waiver to tlieproposed transaction.

E. To minimize or eliminate tlie risk of interruption to the vital services provided by Assignor tO the community,, tl'ie parties lxcreo arc entering into this Agreement. Specifically, pursuaiit tO tlle tcnnS and COndiLiOnS Set fOrtll belOw, AssignOr dcsires tO transfer ilS intcrcSt ill thC Sublease Agreement, the Improvements, and tlic Pcrsona) Property (collectively, the "Assets") to Assignec so tliat Assigncc may continue witli sucli services; Assignee desires to assume all of Assignor's rights, title, interests and obligations under the Sublease Agreement whicli arise on and after the Effective Date; and tlie City desires to consent to tlie assignment and assumption of the Sublease Agrcement from Assignor to Assignee and to provide tlie releases contained iierein.

F. Tlic parties acknowledge that Caltraiis has provided written approval for tlie assignment of tlie Subleasc Agreenient.

WHEREAS, any capitalized tenn used, but not defined, in tltis Agreement shall have kite meanixig set fortli in the Sublease Agreement.

NOW, THEREFORE, in consideration oF the foregoing, of the mutual promises of the parties hereto and for other good and valuable consideration the receipt and sufficiency of which are hereby acknowledged, the parties mutually agree as follows:

1. Contingency. Except for City's obligation to proyidc funding to Assignor under Section 12 of this Agreement, the terms of this Agreement are expressly conditioned on the office of tlie Attorney General for the State of Califomia not notifying Assignor that it objects to tliis Agreement within twenty (20) days following Assignor's delivery of the Attorney General Notice attached hereto as Exhibit B (Cal. Code Regs. tit. 11, § 999.1-999.2 aiid Cal. Corp. § 5913). If the Attorney General for tlie State of California objects to tliis Agreemcm, in whole or in part, tlien Assignor, Assignee. or the City, upon notice to the otlier parties, may elect to terminate tliis Agreement ("AG Approvar'). Upon termination, all parties sl'iall be relievcd from all obligations aiid liability under this Agrcement.

2. . Assignor, on the Effective Date, hereby assigns axid transfers all of its riglits, title, and interest, in and to tlie Assets, and any and al} obligations relating thereto arising on or after tlie Effective Date, to Assignee. Effective as of tlie Effective Date, Assignee shall be fully rcsponsible for any and all obligations witli respect to tlic Asscts (including, but not limited to, all inaintcnancc and insuraxice obligations or rcquirements) wliich arise on or after the Effective Date.

3. Acceptance of Assig,nmcnt. Assignec liereby accepts tlie above assignment and transfcr of' tl'ic Assets. aiid licrcby assumcs, agrccs, and undcrtakcs to perform all of thc obligations, covenants, and agreemems or Assignor under the Sublease Agreement which arise on, or after, the Effective Date.

ATTACHMENT A

4. Legal Transfer of Trailers. The parties licreto agree to cooperate with eacli ot)tar to transfer tlic five trailers owned by Assignor to Assignee, including, but not limited to complying with the applicable rules or regulations of' the State of California.

5. Termination of Construction Contract. Assignor shall no lcss than 10 days priorto thc Effcctive Datc, give notice of tcnnination under Section 12 of tlxe contract dated May 2022 with O&O Builders, Inc. f"or tlie construction ol' the Navigation Center ("Construction Contract"). To the fullest extent assignable, as of the Effective Date, witliout cost or liability to Assignec, AssiBnor liereby assigns to Assignee tlie indemnification riglits under Section 10 of theConstruction Contract, but reserving for Assignor any rights Assignor lias to indemnif'ication under tlic Construction Contract, and tlic warranties under Section 14 or the Construction Contract.

6. . Assignee accepts tlie Assets in their "AS IS, W-iERF,IS," and "WITH ALL FAULTS" condition as tlit'y exist as of the Effective Date, and Assignor sliall have no obligation to furnish, render or supply any work, )abor, materials, or otlier services to make any of the Assets ready or suitable for Assignee's occupancy. Assignor makes no representations or warranties to Assignee regarding any of tlie Assets, including the structural condition, and/or the condition of any mechanical, electrical, and otlier systems, thereof. Assignce acknowledges tliat Assignor has afforded Assigncc the oppoitunity for full and complete investigation, examination. and inspection of tlie Premises, and Assets in making aiid executing tliis Agreement, Assignee has relied solely on sucli investigations, examinations, and inspections as Assignec has chosen to make or }ias made and has not relied on any representation or warranty of Assignor with respect thereto,

7. Naining/Signage Rights. Some or all of tlie Improvements liave been funded through various donatioris from tliird parties, and in exchange for those donations Assignor agreed or committed to name sucli Improvements after such dcmors and to place signage upon sucli Jn'iprovements reflecting tliose nai'nes. Suclt agreements are attached as Exhibit C ("Naming Agreements"'). Assignee agrees to assume Assignor's obligations and commitments contained in the Naming Agreements.
. 8. City Consent to Assianmcnl and Release of Assignor. Tlic City licrcby approves oj, and consents to, tlie assignment of the Subleasc Agrcement and thc City liercby fully relcascs Assignor l'rom any furtlier obligations aiid/or liability under or relating to thc Sublease Agreement and the Premises arisinH on, or after tlie Eft-ective Data,

9. Efl'ective Date. This Agreement sliall be effective as of 12:00 PM (Noon) PST, on Septcmbcr 1, 2023 (thc "Effective Date"), unless Assignor advises Assignee and City that Assignor has rcccivcd an ob,jection from tl'ie Attorney General of tlie State otaCalifornia in response to the Attorney General Notice ("Attorney General Objection"). It' an Attornty General Objection is received, the Effective Date shall be continued until five (5) Business Days after any sucb objcction f'rom t}ic /'httorncy Gcncral is rcsolvcd, subicct to thc partics right to tctminatc thisAgreement under Section 1.

10. Hold Harmless and Indcmnification.

ATTACHMENT A
a. Assignor sliall indcmni[y and hold Assignee hannless from and against any and all liability, loss, damage, expensc, and costs (including witliout limitation reasonable attorneys' fees and costs) of every nature arising out of or in conncction with the Sublease Agreement, the Premises, the Improveinents, and/or Personal Property arising before tlie Effectivc Date, except sucli loss or damage caused primarily by thc negligence or willful misconduct ofAssigncc. b. Assignee sliall indcnmify and lioM Assignor hartnless front and against any and all liability. loss, damage, cxpense, and costs (including witlioul limitation rcasonablc atlorxieys' fees and costs) of evcry nature arising out of or in connection with the Sublease Agrccn'icnt, the Premiscs, tlic lmprovemcnts, ai'id/or Personal Propcrty arising after the EtTective Date, except sucli loss or damagc caused primarily by tlie negligence or willful inisconduct of Assignor. c. WithoutlimitingAssignor'sliabilityunderSectionl0aandifAssignordoes not satisfy Assignor's obligation under Section 10a, City shall defend (with City's choice of counsel), indcnmify, and hold Assigncc harniless for any and all claims relating to the Subleasc Agreement or Premises that are existing or based partially or totally on facts existing on or before tbe Effective Date, except such claims caused primarily by the negligence or willfiil misconduct of Assignee. City's obligationto indcmnity and hold Assigneeliarmless shall include any and all claims related to the County Note and Deed of Trust. The parties intend this provision to be liberally interpreted to prevent Assignee from being liable or rcsponsible for any inchoate or ripened claims, known or unknown, that existed before the Effective Date. Notwitlistanding the forgoing, City's defense, indemnification, and hold harniless obligations herein shail not extei'id to any claim relating priinarily to premises liability, except for tliird party claims that ripened no later tlian 90 days af'ter the Effective Date tliat werc not caused primarily by the negligence or willful misconduct of Assignee.

11. . As of the Effective Date, Assignee shall havc in cffcct insurancc in satisfaction of Section 9.2 and 9.3 or tlie Sublease Agreemcnt,

12. Premises Operating Expenses. City agrees to provide funding to Assignor reJating to tlie continued operation of thc I)remises beginning on Augustl6, 2023, and ending on the carlicr o'?. (a) tlie date this Agreement is terminated, or (b) the Effective Date. Assignor sliall supply Citywith the following within thrcc (3) Business Days of tliis Agrcement's exccution: (a) a list of all payml) expcnscs relatcd to tlie Premises for the period of July 16 - July 31, 2023, (the ".luJy Payroll Charges") and (b) statements for all water, sewage, storm drain, solid wastc, watcr, and electricalcliargesrc!atedtotliePremisesfortlieperiodofJuly 16-July31,2023(the"JulyUtility Chstrges"). City shall provide funding equal to the July Payroll Cliarges and July Utility CliargestoAssignorwitliintwo(2)BusincssDayspriortotl'iccndol'caclipayrollpcriod. City'sagrccmcnt to provide f'inding to Assignor to be used for Assignor's payroll expense shall not create an employee/employer relationship between City and Assignor's employees. Assignor shall remain the employcr of tlie Assignor's employ('as and Assignor sliall solely detcmiine the time, place andmanner of any services provided by Assignor's employces.

ATTACHMENT A

13. Miscellaiieous Provisions
a. Goveming Law. Tliis Agreement s]tall be governed by the laws of tlie State of-California,
b. . Tlic licadings uscd in this Agreement are for convenience only and sliall be disregarded in interpreting the substantive provisions of this Agrecment.
c. Counterparts. This Agrecinent may consist of and be executed in one or more counterparts. If so executed, all sucli counterparts shall collectiyely constitute one document, The exchange of coliies oftliis Agreement and of executed signaturepages by facsimile transmission or by electronic mail in "portable document formal" (".pdf"), or by a con'ibination of such means, will constitute effective execution and delivery of this written Certificate as to the parties and may be useci in lieu of an original Cer(ificate for all purposes. Without limitation, "elcctronic signature" sliall include DocuSign signature, faxed or cmailed versions of ari original signature or electronically scanned arid transmittcd versions of axi original signature.
d. Entire .%reement. This Agreement constitutes the entire agreement between the parties pertaining to the subjectmattercontained herein aiid supersedes all prior aiid contemporaneous negotiations, agreements, representations, and understandings of tlie parties. No modification or amendment of this Agreement shall be binding, unless executed in writing by the parties. c. Good Faith. Eacli of the parties hereto agrees tbat it sliall act in good f'aitli to cause all of the conditions precedent to its rcspectiye obligations herein to be satisfied,
f. Further Acts. Each party shall do and pcrform, or cause to bc done and performed, all such further acts and things. and shall execute and deliver all such other agreements, certificates, instniments, and documents, as the other party may rcasonably request in order to carry out the intent and accomplisli the purposcs of tliis Agreement axid tlie consummation of the transactioris contemplated hereby. g. Business Day. As used lierein, the term "Business Day" means any dayother tl'ian Saturday, Sunday and any day wliich is a lcgal holiday in tlic State ofCa)iforxiia. h. Incorporation of Recitals. The Recitals are liereby incorporated into andmade a part of this Agreement, as if f'iilly set fortli herein, (Signature page follows]

ATTACHMENT A
IN WITNESS WHEREOF, the parties l'iave entercd into this Agreement as of the date firstwritten above.

ASSIGNEE: ST. MARY'S DINING ROOM,
a California not'iprofll public bcne['it corporation Petra Linden
Executive Director
ASSIGNOR: STOCKTON SHELTER FOR THE HOMELESS.
a California nonprofit public benefit corporation ' By:'=J)c44Name: J e,nn!kc l-ku
Tit'e:rvsi*tJ, 80tt,s4 ef hc+w5
[SI(,NATURES CONTINUE ON FOLLOW[NG PAGE]

ATTACHMENT A
APPROVED AS T FORM:
t,ori M. Asuncio
Crl t')/
(/
B)/ "/
CITY OF S'rOCKTON,
a munici corporation
arry lac a
$City cr
pr[ST: -f o
i -'; !71

ATTACHMENT A

AMENDMENT TO

AIRSPACE GROUND SUBLEASE
This an'iendment agreement (tlie "Amendment") is entered into as of August L!2, 2023, by and between St. Mary's Dining Room, a California non-profit corporation ("Sublessee" or "SMDR"), and the City of Stockton, a municipal corporation (the "Sublessor" or "City"), with reference to the following facts:

A. City has leased from the State of California, Department of Transportation ("Caltrans") certain ground airspace as described in Airspace Ground Lease No. 10-SJXOO5-0100 (the "Caltrans Lease").

B. City, as sublessor, had subleased certain premises under the Caltrans Lease to Stockton Shelter for the Homeless ("SSH"), as sublessee, pursuant to that certain Airspace Ground Sublease entered into between City and SSH, dated July 23, 2003 (the "Sublease Agreement," which is incorporated by this reference). The Sublease Agreement was twice extended by the City and SSH, with the tenn of the Sublease Agreement's current renewal period to run until December 31, 2027. There are no additional renewal periods under the Sublease Agreement.

C. On August 6, 2023, City, SMDR, and SSH entered irito that ceitain Assignmentand Assumption Agreement (the "Assignment Agreement," which is incorporated by this reference) which assigned certain rights, interests, and obligations of SSH to SMDR. The effective date of the Assignment Agreement (the "Assignment Effective Date") is set out in the Assignment Agreement.

D. City and SMDR now desire to amend the Sublease Agreement.

E. City desires to make a payment of Two Hundred Fifty Thousand dollars ($250,000.00) (the "City Funds") to SMDR to assist in operating the homeless shelter located on the Premises.

F. For purposes of clarity and understandtng, the provision of the City Fu+'tds is intended by City staff and SA/ff)R to be short term or "bridge" funding until City and Assignee negotiate and potentially enter into a new agreement for additional funding. Wliile no terms or conditions l'iave yet been agreed upon by the parties, City staff has indicated to SMDR that City may make a substantial economic conunitment to SMDR as consideration for operating the shelter facilities and services on the Premises for a prolonged period. SMDR understands and aclaiowledges that the Stockton City Council retains full and unfettered disgetion whether to approve such a new agreement, the relevant terms and conditions of such a new agreement, and whether or not any econoinic commitments will be made to SMDR in such an agreement.

WHEREAS, any capitalized term used, but not defined, in this Agreement shall have the meaning set forth in the Sublease Agreement.

NOW, THEREFORE, in consideration of the foregoing, of the mutual promises of the parties hereto and for other good and valuable consideration the receipt and sufficiency of which are hereby acknowledged, the paities mutually agree as follows:

Page 1 of 5 ends

City Council and Concurrent AuthoritiesSeptember 12, 2023

City Council and Concurrent Authorities
September 12, 2023